Product Spotlight MOBILE ORDERING APP!Featured Research Featured Research Convenience Store News - June 2017 Quick Stats Quick Stats You are here Analyst: Heat-Not-Burn Will Revolutionize Tobacco Industry Platform may change the trajectory of smoking.NEW YORK — The next step in tobacco products could be heat-not-burn technology, stated one industry analyst.According to a Wells Fargo Securities LLC 10-year analysis on the market potential for Philip Morris International's (PMI) iQOS platform, the heat-not-burn technology "has the potential to change the trajectory of smoking," said Bonnie Herzog, managing director of tobacco, beverage and convenience store research at Wells Fargo Securities.The belief that this technology could revolutionize the global tobacco industry comes amid different attitudes toward risk and regulatory constraints on behavior, Herzog noted.There were several key takeaways from the Wells Fargo Securities analysis.According to Herzog, iQOS is a competitive advantage for both PMI and The Altria Group Inc.

given its "superior technology, first-mover advantage with commercialization/clinical trials, and ability to leverage the Marlboro brand globally."In late 2013, Richmond, Va.-based Altria and PMI announced a strategic framework to commercialize reduced-risk products and electronic cigarettes.The pact was expanded this past summer to include a joint research, development and technology-sharing agreement, as CSNews Online previously reported.good vape pen for beginnersIn addition, iQOS will accelerate the combined profit pool growth of combustible cigarettes and reduced-risk products in the next decade by 400 basis points to a 12.5-percent compound annual growth rate for PMI and by 260 basis points to a 9-percent compound annual growth rate for Altria, the analysis found.da vinci vaporizer first time use

The analysis also revealed iQOS could displace up to 30 percent of the combustible cigarette industry in the developed markets by 2025; increase smoking prevalence; and accelerate the premiumization of the overall market, Herzog reported."iQOS is a positive catalyst for both companies and gives them a competitive advantage," she said.Herzog explained the platform could be "a win-win" for both tobacco companies, and Wells Fargo Securities "increasingly believes it could be the catalyst to reunite the companies," as some outlets have speculated.pax ploom vaporizer cheapestPotential benefits could include significant synergies/cost savings; geographic diversification; better aligned incentives and opportunities especially as it relates to new technologies such as iQOS; and the ability to more effectively compete on a global basis, she pointed out.e cigarette gembloux

"However, regardless of a potential merger between the two companies, we believe PMI's strategic framework with Altria's to commercialize reduced-risk tobacco products and e-cigarettes is a clear positive for both," Herzog said.The platform could also be a catalyst to drive a better alliance between public health and the tobacco industry, she said, pointing to PMI's clinical evidence gathered to date that suggests iQOS approaches a "gold standard" of cessation.e cigarette loughborough"Ultimately we believe iQOS has the potential to usher in a new public ethos and disposition toward smoking, aligning PMI with on-trend aspirations for healthier living, improving smokers' health trajectories and the way they feel about themselves as smokers, effectively redefining the smoking experience, which shouldn't be underestimated," Herzog explained.dmt vaporizer volcano

On a tree-lined street of stately 19th century palazzi in central Milan, there’s a storefront with glossy parquet floors, subdued blue lighting, and walls displaying large-format color portraits of trendy young people.The space—which looks like it might be an art gallery or chic hair salon—is Marlboro's latest marketing campaign.The shop is what cigarette maker Philip Morris International calls an embassy for iQOS, a €70 ($79) device that gives a nicotine hit by heating tobacco instead of burning it.iqos buy canadaSince November 2014 the company has set up about 10 such outlets in Italy and Japan where visitors can sample Marlboro HeatSticks, which users say are more like smoking than e-cigarettes and offer a stronger buzz.iqos hawaiiAndre Calantzopoulos, chief executive officer of Philip Morris, told investors in February that the technology puts the industry “on the cusp of a revolution” that may improve public health with a safer alternative to smoking, while adding as much as $1.2 billion in profit.Philip Morris has spent more than $2 billion developing smoking alternatives, including a similar product called Heatbar that flopped a decade ago.iga quinns

It doesn’t claim iQOS is healthier than smoking—it’s sold with a warning that the safest option is to avoid tobacco altogether.But the company has 300 scientists searching for proof that iQOS may reduce the risk of smoking-related diseases, and iQOS brochures say it emits fewer harmful substances than cigarettes and that clinical tests are under way to compare the risks.As rivals try to catch up and regulators ponder whether to support such efforts, antismoking groups are pushing back.“Time and again, Philip Morris International has been caught lying to the public about the health effects of its products,” says Cloe Franko, a senior organizer at Corporate Accountability International, a Boston nonprofit that opposes tobacco companies.To use iQOS, a smoker inserts a tube of tobacco that looks like half a cigarette into a device about the size of a fat ballpoint pen.The tobacco is skewered on a metal blade that heats it to about 500F, a third the temperature of a burning cigarette, providing a dozen or so puffs.

The taste is akin to a traditional cigarette, and the sticks smell like tobacco, though less odor remains after they’re consumed.The device must be recharged after each pack of 20 sticks, which cost €5 in Italy, vs.about €5.20 for a pack of traditional Marlboros.Analysts say it could be more successful because it gives a better nicotine buzz than an e-cigarette and imitates the ritual of smoking.Sales of e-cigarettes are only about 1 percent of the $863 billion tobacco market, according to researcher Euromonitor International.Analysts at Wells Fargo predict that Philip Morris’s HeatSticks could displace as much as 30 percent of cigarette sales in developed markets by 2025.British American Tobacco aims to start selling a similar product in the second half of 2016; Reynolds American is developing a heating device, though it reported that one tested in Wisconsin last year didn’t meet performance expectations; and Japan Tobacco is introducing a vaporizer called Ploom Tech.But Philip Morris is far ahead of the competition, says James Bushnell, an analyst at Exane BNP Paribas.

“This is the closest yet that the industry has got to the holy grail of a commercially successful ‘safe’ cigarette,” he wrote in a recent report.In Japan more than 100,000 smokers have switched to iQOS, and Philip Morris says HeatSticks accounted for 2.4 percent of the Tokyo cigarette market in January.Philip Morris says it will sell iQOS in about 20 countries this year, and it plans to submit an application to the U.S.Food and Drug Administration to call the device a modified-risk tobacco product, though the FDA hasn’t yet given the go-ahead to similar requests.Philip Morris created the “embassies” to promote iQOS, given bans on tobacco advertising in many countries.Reminiscent of Nestlé’s Nespresso shops, the embassies organize events for iQOS users to socialize and spread the word.“We’re expanding our marketing toolbox,” Miroslaw Zielinski, head of the tobacco company’s “reduced-risk” business, said in a webcast in February.“This has been undeniably a much more complex undertaking than cigarette marketing.” The bottom line: Philip Morris says heating tobacco may be safer than burning it, but antismoking groups don’t buy it.