PMI Creates New Smoke-Free Products President Role to Speed Transformation
Philip Morris International is establishing a category management structure for its smoke-free and combustible cigarette businesses to accelerate its transition to a smoke-free future. Current PMI Chief Consumer Officer Stefano Volpetti has been appointed
Philip Morris International is establishing a category management structure for its smoke-free and combustible cigarette businesses to accelerate the transition to a smoke-free future. Current PMI Chief Consumer Officer Stefano Volpetti has been appointed as President and Chief Consumer Officer of the smoke-free product category. Werner Barth, currently PMI's Senior Vice President of Business, has been appointed as President of the combustible category and Global Combustible Marketing.
“As PMI accelerates its move towards a smoke-free future, we are introducing a category management structure to further unlock and enhance PMI's growth, ensuring we remain focused on delivering what matters—faster, better quality, and higher cost efficiency,” said PMI CEO Jacek Olczak in a statement. “Stefano and Werner are talented leaders, and I have full confidence they will succeed in their new roles, working closely together to achieve a smoke-free future.”
“Establishing a global end-to-end category view is crucial for further driving the growth trajectory of our smoke-free products, fostering a consumer-centric approach, and leveraging our market and regional strengths as we work together to achieve our smoke-free ambitions,” Volpetti said.
“The new structure is essential for achieving our financial and non-financial goals in the coming years, helping us maintain our competitive position in the cigarette market, which in turn enables us to significantly accelerate our smoke-free journey,” Barth added.
Both leadership appointments will take effect on November 1, 2021. The new category management structure ensures stricter end-to-end accountability from development to deployment, as well as ongoing collaboration across relevant functions such as product, life sciences, operations, and IT. Volpetti and Barth will become strategic owners of each category and will work with regions and markets to achieve PMI's business objectives. PMI's six regional presidents will continue to report to the CEO.
Volpetti is a global leader with consumer expertise and experience in transforming brands in complex business environments. He joined PMI in 2019 as Chief Consumer Officer, driving a consumer-centric approach to market deployment with "fit-for-use" solutions across the entire IQOS brand building, innovation, service, and omnichannel experience spectrum. Prior to joining PMI, Volpetti worked at Procter & Gamble for 22 years, where he held various roles with increasing responsibilities, including Vice President and Brand Franchise Leader, operating in over 100 markets. In 2015, he also served as Chief Marketing Officer at Luxottica Eyewear, gaining valuable retail business experience.
Barth is a loyal advocate of PMI, recognized for his deep understanding of the business, courageous leadership, strategic thinking, and extensive business expertise. As PMI's Senior Vice President of Business since 2018, Barth has built a strong downstream organization, instilling a consumer-centric philosophy and ensuring seamless deployment of products and programs. Barth joined Philip Morris Germany as an intern in 1990 and has built his career through key assignments since then. He was appointed Marketing Director for Spain in 2002 and then Sales Director for Germany and Austria in 2004. In 2007, he was appointed Managing Director for the Benelux region. He was promoted to Managing Director for Germany and Austria in June 2011. In April 2015, Barth was appointed Senior Vice President of Marketing and Sales.
Since PMI launched its first smoke-free product, IQOS, in 2014, the company has made significant progress in reshaping its operating model and expanding its organizational capabilities while continuing to achieve strong business results. As of September 30, 2021, PMI's smoke-free products are available in 70 markets, accounting for approximately 29% of the company's total net revenue in the third quarter. By 2025, PMI plans to sell its smoke-free products in 100 markets by the end of the year and achieve more than half of its annual net revenue from these products.
