Company: Philip Morris International, Lausanne, Switzerland
Company Description: Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. he company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, vapor and oral nicotine products.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Most Innovative Company of the Year - More Than 2,500 Employees
 Nomination Title: Philip Morris International
- Which will you submit for your nomination in this category, a video of up to five (5) minutes in length about the achievements of the nominated organization since 1 January 2021, OR written answers to the questions for this category? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video.
- If you are providing written answers for your submission, you must provide an answer to this first question: Briefly describe the nominated organization: its history and past performance (up to 200 words):
Total 196 words used.
Philip Morris International (PMI) is a widely known cigarette company that few regard as a leader in innovation—but we are working hard to change that. In 2016, PMI announced its new purpose: to deliver a smoke-free future. Since then, we have put science, technology, and sustainability at the heart of our operations, working relentlessly to create a culture of innovation and consumer-centricity, and help those adults who would otherwise continue to smoke to switch to better alternatives.
Seven years after announcing our critical mission of phasing out cigarettes and replacing them with scientifically substantiated, less harmful alternatives, we remain committed to accelerating the end of smoking. Our commitment is backed by a substantial research and development program and significant, sustained investments in our manufacturing, commercial, and human capabilities, along with the infrastructure needed to bring these better alternatives to market.
More than 1 billion people worldwide smoked cigarettes or other combustible tobacco products in 2021 and according to the World Health Organization, around the same number will smoke in 2025. We can do better. We believe a smoke-free future is attainable, promising enormous benefits to adults who would otherwise continue to smoke—and to global public health.
- If you are providing written answers for your submission, you must provide an answer to this second question: Outline the organization's achievements since the beginning of 2021 that you wish to bring to the judges' attention (up to 250 words):
Total 235 words used.
PMI has built a leading position in the smoke-free category globally. Knowing that no single smoke-free product will appeal to all smokers, we continuously innovate—offering a variety of taste, technology, usage, and price options—to provide alternatives as diverse as smokers themselves. Our company has invested more than USD 10.5 billion in better alternatives since 2008, and we employ more than 980 world-class scientists, engineers, and technicians to ensure we deliver a smoke-free future as quickly as possible.
Since 2021, we have implemented several programs to support innovation. These initiatives include leveraging external partners—a dynamic, global ecosystem of technology and capability providers—to deliver a superior portfolio, supporting two master’s degree programs—in Data Science and Industrial & Systems Engineering—to foster open innovation and academic collaboration, launching a scientific incubator to explore disruptive technologies, and investing in innovative startups through our venture capital arm. To each, we provide significant support in our areas of expertise, including life sciences, consumer engagement, and industrial and product technologies.
Our results speak for themselves. Today, smoke-free products represent approximately 35% of PMI’s adjusted net revenues (as of April 20, 2023), up from 32.1% in 2022, and 29.1% in 2021. In addition, there are 25.8 million adult users of our smoke-free products worldwide, of whom 18.5 million have switched to IQOS—our leading smoke-free brand—and stopped smoking, up from 18.3 million and 13.0 million, respectively, in 2020.
- If you are providing written answers for your submission, you must provide an answer to this third question: Explain why the achievements you have highlighted are unique or significant. If possible compare the achievements to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
Total 245 words used.
Cigarettes remain the No. 1 cause of preventable death around the world, and yet more than 1 billion people continue to smoke. To date, PMI is the only major tobacco company publicly committed to delivering a smoke-free future—and contributing to a public health breakthrough.
Our achievements in recent years position us well to realize our bold ambition: to become a predominantly smoke-free company by 2025, generating more than 50% of our total net revenues from smoke-free products (up from 35% today). By that year, we also aspire to have our smoke-free products available for sale in 100 markets (up from 78 today) and for at least 40 million adults—who would otherwise continue to smoke—to switch to smoke-free alternatives (up from 25.8 million today).
But better alternatives is just one part of our evolution.
Since 2021, we have moved from a value proposition centered on doing less harm toward one where we have a net positive impact on society. To this end, we are harnessing our unique scientific capabilities to develop products and services beyond tobacco and nicotine, creating growth opportunities in adjacent areas such as self-care wellness, as well as inhaled, oral, and intraoral therapeutics. Our strategic acquisitions of Vectura, Fertin Pharma, and Swedish Match have significantly expanded our portfolio and geographic footprint, accelerating our smoke-free journey and further positioning us to lead the transformation of our industry. We aim to achieve at least USD 1 billion in revenues from these sources by 2025.
- You have the option to answer this final question: Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 240 words used.
About us:
- At no other time in its 150-year history has PMI had so much potential to transform the tobacco industry and create positive change in the world.
- PMI’s Statement of Purpose speaks to the strides we have made to accelerate the decline of cigarette smoking beyond what traditional tobacco control measures can achieve.
- Our 2025 Roadmap outlines forward-looking goals that relate to the areas in which we can make the most significant impact.
- To make our progress both measurable and verifiable, we developed our Business Transformation Metrics, a set of bespoke key performance indicators (KPIs).
About our innovation:
- Innovating for better alternatives is at the core of our strategy. We employ a step-by-step scientific program, modeled on the pharmaceutical industry, to develop products with a significantly reduced health impact compared with cigarettes.
- Our innovative smoke-free portfolio includes heat-not-burn, vapor, and oral nicotine products—all without combustion.
- Bringing together two of PMI’s strategic acquisitions, Vectura Fertin Pharma will accelerate our ability to unlock the full potential of proven, safe, and effective therapies and commercialize them through proprietary brands or in partnership with other pharmaceutical companies, creating growth opportunities in the areas of wellness and healthcare.
- We also invest in innovative start-ups through PM Equity Partner (PMEP), our corporate venture capital arm. In 2021, PMI dedicated USD 200 million to minority investments in early- and growth-stage companies. PMEP currently has 13 investments spanning life sciences, consumer engagement, and industrial and product technologies.
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