PMI Launches Tobacco-Free Pods Aiming to Cut Taxes and Avoid Regulation

Philip Morris International (PMI) has launched LEVIA, a tobacco-free product aimed at cutting taxes and avoiding existing fiscal classifications and regulatory restrictions. The company says the product is used with IQOS heated tobacco devices and may reduce health risks, but the World Health Organization points out that there is currently no evidence showing it is safer than conventional tobacco.

According to a Sept. 28 report by headtopics, Philip Morris International (PMI) unveiled a tobacco-free pod product designed for use with its IQOS heating device. The company says the device heats small cigarette-like packs but does not burn them, which may lead to fewer health risks compared with smoking. PMI has developed a range of pods called LEVIA, which it says contain no tobacco, but instead use a so-called "non-tobacco substrate" infused with nicotine. Flavors include tobacco, blueberry mint, and menthol. 

PMI CEO Jacek Olczak said in an investor day presentation that the product not only gives consumers another option if they do not wish to use tobacco, but may also benefit from lower tax treatment. Olczak added that LEVIA "may not be subject to flavor regulations in some jurisdictions, and it does not fit into existing fiscal categories," adding that PMI is discussing with regulators in target markets how the product should be handled. 

The company argues that, compared with conventional cigarettes, these products—referred to by the industry as "reduced-risk" products—can lower exposure to harmful chemicals relative to smoking and therefore should receive lower tax treatment. The U.S. Food and Drug Administration (FDA) has already authorized PMI to market IQOS. However, the World Health Organization says there is still no evidence that heated tobacco carries lower health risks than other tobacco products.