Retail News CRM

Tag: Philip Morris

  • Philip Morris to begin selling Korean-made heated tobacco unit

    Philip Morris to begin selling Korean-made heated tobacco unit

    Philip Morris Korea Inc. said Thursday that it will begin selling its tobacco sticks, called Heets, produced at its factory in South Korea later this month.

    To this point, Philip Morris Korea imported Heets for sale in South Korea.

    Philip Morris Korea has expanded its production facility in Yangsan, the first facility in Asia to manufacture heated tobacco units for its tobacco heating device IQOS. Yangsan is a city located about 420 kilometers southeast of Seoul.

    The share of Heets, tobacco sticks exclusively for IQOS, was reported at 8.1 percent of South Korea’s total tobacco market in August.

  • Philip Morris: Singapore’s ban on tobacco display won’t curb smoking rate

    Philip Morris: Singapore’s ban on tobacco display won’t curb smoking rate

    Philip Morris Singapore said the forthcoming ban on the display of tobacco products at retail outlets will have no impact on the smoking rate in Singapore.

    The comment by the leading tobacco company in Singapore was in response to the announcement by the Ministry of Health (MOH) on Wednesday (9 December) that retailers selling tobacco products will no longer be allowed to display such items near the cashier counters of their outlets from 2017.

    The ban on point of sale display (POSD) will take place after the Tobacco (Control of Advertisement and Sale) Act has been amended, MOH said. The amendments will be tabled in parliament, whose opening session is in January 2016.

    “The POSD ban aims to protect the health of Singaporeans. By removing tobacco products from the public’s line of sight, we want to prevent our youth from picking up the smoking habit, and to help individuals who are trying to quit smoking,” said MOH in a press release.

    In an email statement to Yahoo Singapore, Philip Morris Singapore said based on its experience in working with countries that have similar regulations, there has been no clear evidence of a decrease in the smoking rate of these countries after such a ban took effect.

    “From the retail perspective, this will bring significant operation burdens to retailers. From our perspective, it will stiffen competition…when all products are hidden, how can you compete?” said a Philip Morris spokesperson, who declined to be named.

    “You can’t scientifically demonstrate with evidence that it (POSD ban) will reduce smoking rate,” he added.

    Iceland, Canada and Thailand are some of the countries in the world that have imposed a ban on POSD.

    PMI is one of the leading tobacco companies in Singapore, owning brands such as Marlboro and L&M, according to Euromonitor International.

    Retailers will be given a 12 months grace period after the ban has been gazetted, to give them “time to effect the changes and smoothen the transition process” so that they can comply with the rules, MOH said.

    “Support from the community and businesses is crucial in our fight against tobacco use. Retailers can help create the right environment for Singaporeans who are trying to stay away from cigarettes,” it added.

    On Wednesday morning, Senior Minister of State for Health and Environment and Water Resources, Amy Khor, attended a meeting with tobacco retailers to inform them of the implementation of the new guidelines.

    The Health Promotion Board (HPB) has also prepared a brochure to assist tobacco retailers in implementing the ban.

    Since 2013, MOH, HPB and Health Sciences Authority (HSA) have had a total of 14 dialogue sessions on the POSD ban.

    Lees ook:

    Lees ook:

    Lees ook:

  • Philip Morris Starts Testing Investor Demand For Indonesia Cigarette

    Philip Morris Starts Testing Investor Demand For Indonesia Cigarette

    Philip Morris International Inc., which makes and sells Marlboro cigarettes outside the U.S., has started testing investor appetite for an over $1.5 billion sale of its shares in its Indonesian operation, according to people familiar with the situation, in what would be one of the biggest share sales in Southeast Asia this year.

    New York-based Philip Morris is talking to potential investors to place its shares in PT HM Sampoerna Tbk. through a rights issue and hopes to start taking orders from Sept. 21, one of the people said. Another person said a decision to go ahead would depend on market conditions.

    The sale will allow Philip Morris to comply with a pending stock-exchange rule requiring all Indonesia-listed companies to have at least 7.5% of their shares in public hands. Philip Morris currently owns 98.2% of the unit, which has a market capitalization of about $23.6 billion.

    Philip Morris is the top cigarette manufacturer in Indonesia, the world’s second-largest market for cigarettes after China. Given the limited number of freely traded shares in PT HM Sampoerna Tbk. (HMSP.JK), it is unclear at what price the shares would be sold to investors.

    The deal, if successful, would be the second largest equity-market transaction in Southeast Asia after a $1.7 billion initial public offering by Thailand’sJasmine Broadband Internet Growth Infrastructure Fund (JASIF.TH) in January. Deal activity in the region has been slowing due to volatile markets and Indonesia has been one of the worst hit.

    Indonesia’s Jakarta Composite Index is down 15.6% in the year through Tuesday’s close, the worst performer in Asia. The market has been rocked this year by a combination of negative events. Weaker-than-expected demand from China has put pressure on commodity prices, which has hurt Indonesia’s producers and exporters. At home, President Joko Widodo’s plans to increase economic growth through infrastructure spending have been met with disappointment as projects fail to mature and the government rolls out new protectionist policies.

    In late June, Philip Morris announced that the unit had engaged investment banks to assist in evaluating options for meeting the stock exchange’s mandatory float requirement, which takes effect Jan. 30, 2016. The statement didn’t name the banks or specify the amount to be raised, and Philip Morris declined to give further details.

    Goldman Sachs Group Inc., Credit Suisse Group AG, CitiBank Inc., J.P. Morgan and local firm Mandiri Sekuritas are managing the share placement.

    Bankers will be meeting investors in Indonesia, Singapore, Hong Kong, Malaysia and London for about two weeks to gauge interest in Sampoerna shares, one of the people said.

    Sampoerna sells clove cigarettes and is the distributor of Philip Morris’s Marlboro brand in Indonesia. The share should result in additional cash for Philip Morris without ceding any control in the Indonesia business. If successful, the sale will be the biggest such divestments in Indonesia this year.