Philip Morris reported strong fourth-quarter 2021 results,
wherein both the top and the bottom line improved year over year. The
company benefited from improved IQOS user growth, a better market share for
cigarettes, portfolio enhancement efforts and reduced pandemic-led problems in
several markets.
In 2021, total
shipment volumes increased by 4.2% in Q4, and by 2.2% for the full-year. Instead
of focusing the numbers and percentages, I want to highlight the key
take aways from 2022 outlook:
We expect the total industry volume of cigarettes and heated
tobacco units, excluding the U.S. and China, to decline between -1% and -2%.
Given our leadership in smoke-free products, the structural growth of the
category and its growing proportion in our business, we expect to gain share
and target broadly stable total PMI shipment volumes, within a range of -1% and
+1%.
In 2022, PMI still expects continued uncertainty with regard
to the recovery pace from the pandemic-led operating landscape. PMI Management
expects continued gradual recovery in the duty-free business outside Asia and
no meaningful recovery in Asia.
Related with
this year’s outlook, PMI CEO Jacek Olczak mentioned that with an improving outlook for device
supply, and the initial success of ILUMA, we look forward to 2022 with excitement.
Update on IQOS in USA
In Nov 2021, an importation ban was imposed by the U.S.
International Trade Commission (ITC) concerning IQOS products. These include
consumables and infringing components. Consequently, IQOS is currently not
available for sale in the United States. PM announced that we have contingency
plans under action (such as domestic production) and expect to be able to
restart the supply in the United States in the first half of 2023.
By the way,
this International Trade
Commission decision has no bearing outside the U.S.
On 24
January 2020 Friday mid-night, I received shocking news: my wife’s brother
İhsan had an unexpected heart attack. In the early Saturday morning, I headed
to Bursa which is around 4 hours to my hometown İzmir by bus. Thanks to the
free-wifi on the bus, I surfed a lot in order to keep calm on the way. During
the journey I had the chance to read the news about the World Economic Forum
and the actions and announcement my company executives made in Davos. What I
mean by “my company” is Philip Morris International, the disruptive tobacco
company which is delivering the smoke free future vision. Having studied
international relations makes me feel interested in such global organizations.
Last year, I also followed up what as going on through the news portals and
twitter posts and produced a blog content:
This year I
did the same (this time blogging not in my lovely home but in the bus) on the
way back from Bursa to İzmir on 26 January 2020 Sunday evening. Thanks God,
İhsan is out of the intensive care unit in the hospital and he will be under
doctor control for the next three days. One of the doctor’s recommendation for
him was to quit smoking which is absolutely in line with PMI’s smoke-free
future and unsmoke campaign. We will see if İhsan will manage his
transformation or not, but I hope many people will be successful in their
unsmoke transformation if Philip Morris International may find more space to
conversation and dialogue. This dialogue will let the World know about the
scientific evidence in favour of alternative, smoke free products. This
dialogue and collaboration will be for the 1.1 billion existing cigarettes
smokers who would otherwise continue smoking, and there has to be a sensible
plan for these people. Let’s see what I have noticed and highlighted from the
dialogues in Davos.
The World
Economic Forum (WEF) Annual Meeting took place in Davos between 21 and 24
January 2020. This year’s organization brought together 3,000 participants from
around the world, and aimed to give concrete meaning to “stakeholder
capitalism”, assist governments and international institutions in tracking
progress towards the Paris Agreement and the Sustainable Development Goals, and
facilitate discussions on technology and trade governance.
As
sustainable development is one of the key topics of the meeting, the 2020
Annual Meeting is among the most sustainable international summits ever held.
Awarded the IS0 20121 standard for sustainable events in 2018, the Annual
Meeting is fully carbon neutral through reducing, calculating and offsetting
event-related emissions. According to the official website of World Economic
Forum, initiatives are put in place to achieve this goal include using locally-sourced
food suppliers, introducing alternative sources of protein to reduce meat
consumption, sourcing 100% renewable electricity, and reducing or eliminating
the use of materials that cannot easily be recycled or re-used, such as carpets
and introducing more electric vehicles.
We need to bear in
mind that the WEF is a unique occasion that brings together key stakeholders
such as politicians, companies, business leaders, and media from all over the
world. Alongside the 3,000 delegates who are invited to the conference, the WEF
also attracts companies and organizations like Philip Morris International
(PMI) who want to be part of the global conversation in Davos. By the way,
Davos is not only a town in Switzerland but also a word that has become
synonymous on the world’s stage with leadership. So, the leader of tobacco
products PMI was present in Davos to showcase its science, reinforce their
commitment to transformation and transparency, and invite scrutiny.
The WEF have
set a goal for companies to become Carbon Neutral by 2050. PMI targets to
achieve it by 2030. PMI’s Chief Operating Officer Jacek Olczak reminded the
world PMI’s entire manufacturing footprint will be carbon neutral which is 20
years ahead of the objective which Davos has objective for this year that companies
should commit by 2050.
Jacek Olczak
also shared a written content on pmi.com and stated that “in business “big” has
often been linked with “bad.” However, there are vital areas of human
progression that call on the small-scale, artisanal approach to combine with
the benefits of “big” to make the greatest difference.” This is a sign that big
and small businesses can solve big challenges together. Then he clearly
highlighted that PMI is a big company with a big plan for a better future. PMI
wants to help unsmoke the world – by complementing existing efforts to prevent
initiation and encouraging smokers to quit. To achieve its ambition, PMI has
invested billions of dollars in becoming a more science- and technology-driven
organization so it can deliver better alternatives to those adults who would
otherwise continue smoking. In my opinion, people calling and referring “big
tobacco” with a bad, nasty motivation. This is clearly seen especially in the
posted tweets in twitter but PMI, as a big company has a big plan for a better
future which needs to be appreciated and supported by big and small
stakeholders.
Marian
Salzman, PMI’s Senior Vice President of Global Communications, also talked
about the “big” adjective and told that if big in terms of big business does
not jump in to solve the problems of giving people better choices, better
choices will not exist. She believes that the best way to unsmoke the planet is
to have the power of big tobacco, big Philip Morris is behind it, so PMI can
actually have the resources to fight for change.
PMI’s Global
Head of People & Culture Charles Bendotti talked about “the role culture
plays in transforming a business” in Davos. He points out that PMI wants to
achieve a real dialogue – all of us sit around the table, discuss about
different views and find a common agreement. He underlines that it is not about
PMI but about helping 1.1 billion smokers across the world to have a better
life.
PMI’s Vice
President Strategic and Scientific Communications Dr. Moira Gilchrist answered
some hard questions in Davos. One of those questions was “why does PMI still
spend money on advertising for combustible cigarettes in countries which allow
it?” Moira Gilchrist explained that PMI launched smoke-free products a few
years ago and already in 2018 %60 of PMI’s commercial spend went on smoke-free
products that gives an indication of the future direction of the company. In my
opinion, this trend clearly indicates that PMI will be less spending for
combustible business in the near future which will create more source for
unsmoking the world.
Andre
Calantzopoulos, PMI’s Chief Executive Officer, came together with the
participants in Davos and pointed out that regulatory mindset change is another
hard part. That is why PMI names this Davos week “Unsmoke Your Mind”. When you
disrupt an industry, you also disrupt the public health. It is disrupting the
architype of what the industry stands for, the NGOs around, and the regulators
that are not the first ones to jump on new things and regulate them. These
products, because they contain an addictive substance, they must be regulated.
These were
what caught in my radar while I was searching “World Economic Forum 2020 in
Davos” during my bus travel from İzmir to Bursa. On the way back to home, I had
the opportunity to convert my notes to this blog content and thought about
PMI’s senior management’s engagement in conversations about creating a
smoke-free world. Davos is the place where leaders come together to solve
difficult challenges. One of these challenges is to find open and transparent
dialogue about smoke-free alternatives available for adult smokers who do not
quit. In conclusion, I must state that designing a smoke-free future requires
collaboration through dialogue.
There are many great books to read in
terms of personal development. While I was making a search on Amazon's
best-sellers about personal development, I saw the book by Dale
Carnegie: How To Win Friends And Influence People. Since its release in 1936, How to Win Friends and Influence People has sold more than 15 million copies. Dale
Carnegie's first book is a timeless bestseller, packed with rock-solid advice
that has carried thousands of now famous people up the ladder of success in
their business and personal lives. As
relevant as ever before, Dale Carnegie's principles endure, and will help you
achieve your maximum potential in the complex and competitive modern age.
Within the book I am faced with an interesting
unsmoke story. This true-story may open the way for many people in order to
unsmoke the loved ones. Here it is:
We must play our part in addressing global challenges by Managing Our Social Impact and Reducing Our Environmental Footprint. You may watch my full “clean up day” experience below:
Tobacco giant Philip Morris International has said it wants to phase out cigarettes as soon as possible. Philip Morris CEO Andre Calantzopoulos talked to Stephen Sackur
from BBC about smoke free future and discussed the company’s transformation.
Currently I am reading the book written by Michelle Obama,
“Becoming”. So far, it is just as it is told in Amazon: An intimate, powerful,
and inspiring memoir by the former First Lady of the United States. In a life
filled with meaning and accomplishment, Michelle Obama has emerged as one of
the most iconic and compelling women of our era. In the book, Michelle Obama describes the early years of her
marriage as she struggles to balance her work and family with her husband's
fast-moving political career. She also talks about her perspective about her
family’s smoking habit as well as her husband’s smoking habit and shares her
actions in order to unsmoke her family.
Philip Morris CEO André
Calantzopoulos talked about IQOS in US on CNBC on 30 July 2019. Below you may
find the highlights covered by Calantzopoulos on CNBC's "Squawk Alley".
Do you know what makes people take action against smoking? Everyone may have a different reason for unsmoke. Nowadays, I am reading the book "Little Black Stretchy Pants" which is called as the unauthorized story of lululemon". Lululemon makes technical athletic clothes for yoga,
running, working out, and most other sweaty pursuits.Chip Wilson’s part in this story comes from the learnings
of thousands of mistakes. He set the culture, business model, quality platform,
people development program and then got out of the way. What I found interesting in this book is a part in which Chip Wilson describes his attitude to unsmoke his stores. Let's see what drives him to unsmoke his business facilities.
On 23 June 2019 Sunday, just after watching an animation movie with my son and wife, as a Sunday evening activity before sleep, my son asked for a special request: drawing All he asked for was to draw something that each of us can work on different paper and share with each other when the whole drawing was finalized. As a father who is not good at drawing figures, I came up with an idea: Unsmoke
“I’ve got one son and he’s got one life." For Volkan Yorulmaz, the prospect of fatherhood prompted his decision to unsmoke his life and home.
The Turkish senior tax analyst is one of hundreds of PMI employees to share their stories in our #Unsmoke campaign, which aims to tap into global efforts to rid the world of smoke.
