Ammon News - AMMONNEWS - Phillip Morris International (PMI) has all but become synonymous with tobacco, standing as a pillar and industry leader. The company is in the midst of a transformation, moving away from traditional tobacco products to a technology and science-based vision of a “smoke-free future.”
Today we speak with Vassilis Gkatzelis, with more than 15 years of international experience in General Management, Marketing and Sales, which propelled him into his current role as Managing Direct of Egypt & Levant. He is leading the company’s transformation from a cigarette manufacturer to a science and technology-driven organization. Gkatzelis shares his own experience through its transformation journey, how the company has coped throughout the COVID-19 crisis and what to expect from PMI in the future.
Remarking on Philip Morris Jordan (PMJ), which has been investing in operational upgrades, providing exceptional employee conditions, developing and exporting talents across the organization since its establishment in 2011, Gkatzelis stated: “I’m proud of the strong capabilities and skills of our Jordanian employees who have been playing a key role in the PMI transformation, and I’m happy to say that PMJ was awarded the Top Employer certification in Jordan for the fourth year in a row.”
PMI is defined by its core values: integrity, commitment to responsibly market its products (only to existing adult smokers who decide not to quit), as well as the entrepreneurial spirit that characterizes its team as they strive to leverage science and technology to explore new solutions for one of the world’s biggest problems: smoking. “I have been proud of our determination to provide solutions to major societal issues like smoking and offer a solution and a much better choice for the world’s 1.1 billion adult smokers,” said Gkatzelis.
He stressed that “Any business transformation starts with the openness to listen to your customer’s needs and anticipate ways to sustainable value for your key stakeholders. To do that, you have to not only keep learning new things, but also to unlearn and relearn, so that collectively, we can explore new paths without being constrained by yesterday’s success formula.”
Speaking on the progress towards a smoke-free future during the COVID-19 pandemic, Gkatzelis highlights: “We have seen continued momentum of IQOS. In the first half of 2020, we estimated 15.4 million IQOS users around the world, out of whom 11.2 million adult IQOS users have stopped smoking and switched to IQOS, with the balance of various stages of conversion.”
“Furthermore, our Reduced Risk Products (RRPs) net revenue reached $3.2 billion in the first half of 2020, reaching almost one quarter of PMI’s total net revenue in Q2” he added.
Throughout the outbreak of COVID-19, PMI was resilient and agile, even in the most difficult circumstances. The company never faltered in its determination to both protect the safety and wellbeing of its employees, their families, and the communities in which it operates. “Our agility and our ability to adapt to the prevailing conditions have helped us to ensure continuity of supply to our adult consumers and support our commercial partners through this challenging situation. I am proud of the efforts of PMI’s teams in Jordan and across the cluster. We managed to ensure business continuity, including partnering with start-ups and digitalizing our customer care service.”
Gkatzelis also focused on the importance of E-commerce, which has emerged as an important and key tool to secure business sustainability during these circumstances in different regional markets in the Levant, calling on regulators across the region to “realize the importance of such a platform for society and businesses based on clear regulations”.
Despite numerous challenges, including COVID-19 outbreak, PMI remained focused on its smoke-free vision and accelerated its transformation by launching IQOS in Jordan and Lebanon in the Levant Area. To date, this product has been commercialized in 57 markets around the world. In Jordan, Gkatzelis explained that, similar to the rest of the world, adult smokers are aware of the harm of smoking, and many of them are looking for smoke-free alternatives. He noted that since the launch of IQOS in July 2020, PMI has seen its endeavor met with positivity and interest from Jordanian adult smokers.
“Our role goes beyond the point of sale to also help adult smokers with their conversion journey through our customer care services that provide support to smokers to avoid falling back to cigarettes. However, IQOS is not risk-free” said Gkatzelis.
PMI’s message is clear: “If you don’t smoke, don’t start, if you do, quit, and if you don’t quit, change to a better alternative that science and technology now offer.”
Gkatzelis emphasized PMI’s commitment to youth prevention and the responsible marketing of its products to adult smokers, “I know this is a societal issue in Jordan and the whole world. Our Good Conversion Practices are clear; PMI’s smoke-free products are for adults who would otherwise continue to smoke or use other nicotine products, they are not alternative to quitting. While they are not risk-free, switching to a smoke-free product is, however, a much better choice than smoking. Public policy in the U.S. recognizes the role that new alternatives and other nicotine-containing products can play in helping move adult smokers away from cigarettes.”
In developing smoke-free alternatives, PMI has been applying a rigorous scientific assessment program based on practices long used by the pharmaceutical industry and in line with the guidance from the U.S. Food and Drug Administration for a Modified Risk Tobacco Product (MRTP). Commenting on the U.S. Food and Drug Administration’s latest announcement, Gkatzelis said, “The historic US FDA decision of July 7th, 2020 is a great milestone towards our vision for a smoke-free future. The US FDA reviewed all available science and confirmed that IQOS is distinctly different from cigarettes because it has been demonstrated to reduce exposure to harmful chemicals, concluding that the product, as actually used by adult consumers, is appropriate to promote the public health.”
He adds that, “Now is the time to rapidly shift adult smokers away from cigarettes. Scientifically substantiated better alternatives like IQOS represent a public health opportunity. This decision is a result of our ongoing commitment to putting science and innovation at the forefront as we continue our journey towards a smoke-free future.
Gkatzelis noted that though PMI is steadily moving forward with its smoke-free vision, it is not able to do so alone. He stressed that governments and public health authorities have a significant role to play to provide clear information to adult consumers about this new category of products and to define the risk-proportionate regulatory frameworks.” He concludes that “PMI is eager to see measures introduced that drive large-scale switching as quickly as possible, and expressed his confidence that the right mix of government leadership and public health policy experts will dramatically accelerate efforts to reduce the health burden of smoking.”
comment replay 