[ MUSIC ] Andre, you say that Philip Morris his mission is to create a smoke free future. What does that mean exactly? It means a future where Philip Morris doesn't sell any cigarettes and for the people that do not otherwise quit, they have switched. To products that are better for their health, if better for them, it's better for public health. So I think it's a major change if we achieve this in the world. So, if you're successful at achieving this mission, it sounds like your company, which is the world's largest seller of cigarettes will lose a huge part of its business. So tell us what the plan is. Well, the margins of these products are as good or better than cigarettes because they pay less excise taxes. I think we're gaining share from our competitors who have better margins. So I think it makes financial sense for us because We still have shareholders. But if the products are better for the health of people, that's also a positive public health impact. Not for the individual, but also for the society, and I think that's much for sustainable as a business than cigarettes. So let's talk about some of the alternatives. Philip Morris has come up with a device that you're holding in your hand there called IQOS, I- Q- O- S. How did you come up with that name? In the course of finding names that are different from cigarettes, not a cigarette trademark, and express some sophistication I guess the technology of the product, all the controls in electronics That's the name I said. So it kind of looks like one of the vaping devices but it's not. It's different. How does this one work? Well, this one essentially has two parts. The one that it's a charger, you carry the product and helps you use the product for at least a day. And then a holder in which you have all the electronics, all the technology, all the controls that reduce the toxicity and in which you essentially insert a small piece, looks like a cigarette, but it's not, that contains tobacco. You turn it on, you heat it, and you have an aerosol that you inhale. It contains nicotine. But the reduction in toxicants because you hit you don't burn is 90 to 95 % compared to what least you use. It seems like the pitch that you're using for I close is that it's not using chemicals, toxic chemicals, but it's still not healthy. It's still not risk free, right? Absolutely. The product is neither expressed. It is addictive, and that what consumers need to understand very well is much better than cigarettes. Obviously, this has to be confirmed by the FDA that is in the process of doing this, but it's not a sprint. So this is not a vaping device. But I want to ask you about vaping because it's become so controversial. What's your take on vaping All of the vaping products if operating properly and manufacturer properly, produce much, much less toxic ones than cigarettes. So once they will go through the FDA process, I think and submit the scientific evidence. I think it will be clear that there are better alternatives than cigarettes. It is very controversial as you know President Trump Wants to ban vaping. Parents don't want their kids to get addicted. And, some officials are saying that vaping has created a public health crisis. So, what's the right thing to do in your view? First of all, we always said, nicotine products must be regulated. There is. A very big increase in the youth use of nicotine products, and that has to be stopped. There are also 11 million adults that use this product, and somehow, they need to continue having access to this product. The FDA covers all these, and if I judge from the order we receive. For our product regulates very clearly how you market and how you measure that you succeed in intended audiences and you minimise the impact the non intended audiences. So I think at the end of the day, this will normalise. Let me ask you this. We've spent so many years To get people to quit smoking, and now these new products come out that create a new health risk. What are your thoughts about that? I think we should minimize, the use of this products by youth. If you want to address the problem of youth, we need age Limits which now there is clearly a momentum to go to 21 years old, verification at point of sale be it commerce or retail, new education in schools where we tell the kids, we told them for years don't smoke, and now we have to tell them don't use nicotine. And technology that can do automatic age verification before you activate the device. And eventually, when you use a device if it's not the right person, the device stops. And that's the plan we need to put together with the agency to address the problem. But they should not come at the complete immediate detriment of the 11 million people who use the product today. And they are adults. Looking ahead we are at the beginning of a new decade a lot of changes going on at Phillip Morris will the next decade be the end of the [ INAUDIBLE ] era? Is if possible that Phillip Morris will not be selling anymore cigarettes? That's possible, and that's the objective. Whether it's the next ten years or not It doesn't only depend on us. We will do everything we can to achieve this. However, we also need governments and regulators to also support these products and then we can accelerate even more. You spent your entire career at Philip Morris, more than 30 years. How do you feel that at what at some point it will not be selling cigarettes? How do you feel about that? Well, I think I amongst the people who started the process of developing the new products, getting the organization to commercialize them, and setting the new purpose I will be extremely happy if we don't sell cigarettes one day and. That's what we are trying to do. I think success for us is the faster the better to get there. [ BLANK_AUDIO ]

PMI CEO André Calantzopoulos Is Looking Forward to a Cigarette-Free Future

Leadership

Calantzopoulos details his plans for the company's future.


The PMI CEO Is Looking Forward to a Cigarette-Free Future.

Calantzopoulos demonstrates the new iQOS, and details his plan for the company.


Calantzopoulos details his plans for the company's future.