Russia may be left without Iqos
Save the weather can analog import.
Russia may be completely left without IQOS smokeless tobacco heating systems. The reason is the shortage of biopolymer film, which is necessary for filters in sticks. Turns out it’s only available in the US.
“Philip Morris Russian logistics and procurement specialists are looking for housing, but in vain,” says Mash. – There is no way to establish production in Russia either. Therefore, only analog imports.”
If so, then equivalent imports will increase the cost of goods. Previously, Notepad worked like analytical imports. In addition, IQOS in Russia has a lot of participants, including more active ones.
Recall that inside IQOS is a biopolymer film made from polylactic acid (polylactide) – a material widely used in granules and the medical industry. Acid is obtained from sugar cane or starch. The film is due to the fact that it allows the presence of a level of temperature and tobacco vapor formed when tobacco is heated in a stick.
According to the publication, before this production, IQOS faced another misfortune – the supply chain for machine tool components at factories was closed, but this problem was dealt with – the missing parts were transported through Kazakhstan and new sea routes.
CEO of Philip Morris International (PMI) Jacek Olczak said that the company intends to leave the Russian market before the end of the year.
“I assume that we can leave the country around the end of 2022,” Olchak said. — Russia was an important tobacco market for Philip Morris. It is the seventh largest, and the company’s share there is 27%. Perhaps, after leaving Russia, we will reorient ourselves to the Asian and European markets.”
Prior to this, Olchak called the curtailment of his business in Russia “the most active deal” in his history. At that time, the company could not find buyers for Russian assets for at least three months.
Later, Kommersant, citing the management of affiliated companies, said that by the end of the year, PMI in Russia can only be determined by plans – to leave the market or not. According to Sergei Slipchenko, Vice President for Corporate Affairs of PMI in Russia, the company is considering various options for restructuring its business in Russia, including the transfer of assets to the management of a partner.
He noted that there is “the complexity of logistics and the complexity of considering the entire Russian business.”
Slipchenko added that almost all the products that the company places on the Russian market are produced at a plant near St. Petersburg. Another factory is located in the Krasnodar Territory, and the company has representative offices in about 100 Russian cities.
In March, Philip Morris announced that planned investments in Russian enterprises would be suspended and the production operation reduced. This, in particular, is about a quarter of cigarette brands, including some items from the Marlboro and Parlament assortment. PMI has also suspended its outreach activities in the country and canceled the market launch of products scheduled for 2022.
IQOS appeared on the Russian market in 2015, after the production of sticks was launched at a factory in the Leningrad region. By the end of 2020, there were already about 4 million Iqos users in Russia.
With the beginning of the economic operation in Ukraine, Western business began to announce its withdrawal from Russia. One of the first Visa and Mastercard transfers in the Russian market, however, the country turned out to be ready for “manoeuvres” – the National Payment Card System was created in advance, where all transactions within the country are processed. McDonald’s fast food restaurants closed, later the network was sold to a new owner and now restaurants that are very similar to the usual McDonald’s, Vkusno i dot’s places. It is expected that the same Becoming with the Swedish chain of stores Ikea. Foreign companies that have suspended business in Russia and stopped working with the Russian Federation are already counting billions in losses.
Previously, electronic cigarettes designed for a generation were named. Scientists are sounding the alarm in connection with the active spread (especially among young people) of various types of ENDS – electronic nicotine delivery systems. Specialists are especially indignant that IQOS and their devices are being positioned as a less harmful alternative to changing the situation of smoking.
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