US Vaping Crisis Helps IQOS Gain an Early Edge in the American Market
The United States has frequent issues with electronic cigarette vaping oils (rumored to be due to the use of marijuana).
PMI owns the electronic cigarette brand IQOS, which is a new type of tobacco heating system developed by PMI that reduces harmful or potentially harmful substances produced by burning cigarettes through a non-combustion heating method, providing an alternative to adult smokers who do not wish to quit smoking. Additionally, IQOS is the only heated tobacco product authorized for sale by the U.S. Food and Drug Administration (FDA). In the electronic cigarette sector, Altria acquired a 35% stake in the electronic cigarette giant JUUL for $12.8 billion last December, and on September 25 of this year, former Altria executive K.C. Crosthwaite took over as CEO of JUUL.
If the merger occurs, PMI's IQOS combined with Altria's electronic cigarette experience would make the new company invincible in both the tobacco and electronic cigarette sectors.
Although a merger has not yet been finalized, both companies have agreed to collaborate in promoting the sale of IQOS products in the U.S. PMI CEO André Calantzopoulos stated that after careful consideration, both companies agreed to focus on launching IQOS in the U.S. to achieve mutual benefits for a smoke-free future. An Altria spokesperson expressed excitement about the strong partnership with PMI and the opportunity to introduce IQOS to adult smokers in the U.S. Altria launched IQOS in Atlanta earlier this month, while PMI has already sold it in 48 markets overseas.
Currently, all electronic cigarettes in the U.S. must submit applications to the FDA and pass reviews by May 12, 2020. For IQOS, which has already passed FDA review, it undoubtedly has a first-mover advantage.
So, how far is the merger between PMI and Altria?
