SEE Interviews Karaman, Philip Morris Egypt MD

Ali Nevzat Karaman, Managing Director of Philip Morris Egypt and Levant, revealed that the company’s smoke-free products are currently sold in 97 global markets.

Karaman said, in an interview with Sada El-Balad English, Egypt joined the global transformation in Philip Morris International with the introduction of “IQOS” in 2021. He explained that the company’s research and development center in Neuchatel, Switzerland, is constantly working on reducing the harm caused by smoking through innovative alternative smoke-free products, with ongoing efforts by around 1,500 scientists and experts employed by Philip Morris for this purpose. These efforts have resulted in several smoke-free alternative products to traditional cigarettes, most notably in the Egyptian market the “IQOS” heated-tobacco device, which helps reduce the harm caused by tobacco combustion because it works by heating tobacco instead of burning it. He explained that lighting a cigarette creates smoke, which is the main cause behind smoking-related diseases. Karaman said that the product of the heated tobacco is an aerosol, which is fundamentally different than the smoke resulting from burning a cigarette.

He further explained that in 2020, the U.S. Food and Drug Administration (FDA) has authorized the marketing of PMI’s flagship electronically heated tobacco system, IQOS, as a modified risk tobacco product (MRTP), which represents a historic opportunity for public health. In doing so, the agency found that issuing an exposure modification order for the IQOS Tobacco Heating System (THS) is appropriate to promote the public health, and is expected to benefit the health of the population as a whole. This decision demonstrates that IQOS is fundamentally different from combustible cigarettes, and a better choice for adults who would otherwise continue smoking.

The Managing Director of Philip Morris Egypt and Levant stated that IQOS sales account for around 7.5% of consumption within Greater Urban Cairo. Confirming that Egyptian adult smokers are among the most appreciative of the new smoke-free products that we introduced in recent years.

He continued by saying that around 41% of Philip Morris’s global net revenues last year resulted from sales of smoke-free products, exceeding the net revenue from the company’s most famous traditional cigarette brand, Marlboro. This success is the outcome of continuous investment in scientific research since 2008, with spending reaching approximately $14 billion

Karaman stated that most of what is currently sold in the local Egyptian market is produced domestically, following the launch of their new production operations in cooperation with the United Tobacco Company. The factory is already operating at full production capacity. He explained that Egypt is the fourth global market where the company has implemented recycling operations for heated tobacco sticks in record time, praising the response of adult consumers in engaging with the sticks collection and benefiting from rewards and benefits to celebrate their participation in the sustainability program.

He pointed out that the new “IQOS Iluma i” product was recently launched in the Egyptian local market, aiming to further develop alternative products and add new features that makes them of higher quality to gain wider acceptance among Egyptian adult consumers.

On another note, Karaman clarified during the interview that recent geopolitical tensions in the Middle East did not negatively affect operations. Despite the fact that some of the manufacturing inputs in Egypt are imported, especially tobacco, which is not grown locally, the company did not face any issues during the period of tension. 

He emphasized that their constant priority is safeguarding employees in conflict areas and continuing to provide high-quality products.

He also stressed that since 2008, their focus on scientific research and new product development has aimed to achieve a smoke-free world, especially with the findings that have made it possible to offer alternative products that provide adult smokers with the nicotine they need while reducing the harm caused by full combustion of cigarette components.

Philip Morris seeks to raise awareness about smoke-free products in the local market to help as many Egyptian adult smokers to switch to better alternative products compared to traditional smoking and Karaman confirms that while better alternatives exist, quitting entirely remains the best choice an adult smoker can make.