Business Wire

Philip Morris International: New Study Shows Decline of Total Illicit Cigarette Consumption in the European Union in 2019 Despite Continued Increase in Counterfeiting

Share

Philip Morris International Inc. (PMI) (NYSE: PMI) reiterated today the need for collaborative efforts against illicit trade to continue, as a new report produced by KPMG underlined the changing nature of the problem in the European Union (EU).

The independent KPMG annual study, commissioned by PMI, found that in 2019, the consumption of illicit cigarettes—which consist of contraband, counterfeit, and illicit whites—continued to decline in the EU, reaching an all-time low since the study first took place in 2006. In total, 38.9 billion illicit cigarettes were consumed, representing 7.9 percent of total cigarette consumption, a 0.7 percentage point reduction compared to the previous year.

Despite the overall decline of illicit cigarette consumption, which continued for the seventh consecutive year, the consumption of counterfeit cigarettes continued to grow, reaching 7.6 billion, a 38.3 percent increase compared to 2018 and the highest level recorded to date.

“The continued decline of illicit tobacco trade in the EU is a positive development and reinforces the importance of supply chain control measures, strict enforcement, and collaboration in combating this issue,” said Alvise Giustiniani, vice president of Illicit Trade Prevention at PMI. “We must remain focused on these collective efforts, as there continue to be worrying trends like the increase of counterfeit cigarettes and the persisting problem of illicit whites. The first ever EU-wide tracking and tracing system that was introduced last year under the European Tobacco Products Directive is an important tool for law enforcement and one that we should continue to enhance through close collaboration and information-sharing to remain highly vigilant on emerging risks.”

Illicit trade undermines efforts to reduce smoking prevalence and makes unregulated tobacco products easily accessible. For PMI to deliver a smoke-free future and enable millions of people who would otherwise continue to smoke to switch to better alternatives to cigarettes, it’s essential to eliminate illicit tobacco trade wherever it exists.

Interviews with law enforcement conducted by KPMG as part of the study indicate that the manufacture of illicit whites and counterfeit cigarettes in illegal factories located in the EU is increasing. Insights from law enforcement also refer to emerging organized crime groups that specialize in the smuggling and sale of illicit raw tobacco.

Other report findings reveal that:

- Counterfeit cigarettes represent 19.5 percent of total illicit cigarette consumption. Compared to 2018, the biggest increases in counterfeit consumption occurred in the U.K. (by 137 percent, to 2.1 billion cigarettes) and France (by 82 percent, to 0.84 billion cigarettes).

- Illicit whites continue to be a major element of illicit cigarette consumption, representing 35.6 percent of illicit consumption in the EU, or 13.8 billion cigarettes, up from 29.8 percent in 2018.

- For the first time since the research began in 2006, counterfeit cigarettes and illicit whites represent more than 50 percent of total illicit cigarette consumption in the EU.

- The countries with the largest volumes of illicit cigarette consumption in the EU were France, with 7.2 billion illicit cigarettes, and the U.K., with 5.5 billion illicit cigarettes.

- The highest shares of illicit cigarette consumption were found in Greece (22.4 percent), Lithuania (17.7 percent), and Ireland (17.5 percent). Compared to 2018, both Greece and Ireland saw a declining trend in illicit cigarette consumption, while Lithuania marked a slight increase.

- Illicit flows from identifiable markets outside the EU, such as Ukraine and Belarus, continued to decline. However, illicit products reportedly originated from within the EU—and destined to another EU country—increased in 2019.

PMI invests significantly in supply chain controls through preventive and protective measures, implements track-and-trace solutions worldwide in line with strict regulatory requirements, and applies comprehensive due diligence of customers and suppliers. The company supports regulations such as the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products and the tracking and tracing provisions under the EU Tobacco Products Directive. Furthermore, PMI works with private and public actors alike to help advance the global anti-illicit trade efforts, including through PMI IMPACT, a global initiative supporting third-party projects against illegal trade and related crimes.

For more information about PMI’s illicit trade prevention efforts, visit StopIllegal.com.

About KPMG’s Report

A detailed overview of results and methodology is available here.

Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company, and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the United States. In addition, PMI ships a version of its IQOS Platform 1 device and its consumables authorized by the U.S. Food and Drug Administration to Altria Group, Inc. for sale in the United States under license. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI’s smoke-free IQOS product portfolio includes heat-not-burn and nicotine-containing vapor products. As of March 31, 2020, PMI estimates that approximately 10.6 million adult smokers around the world have already stopped smoking and switched to PMI’s heat-not-burn product, available for sale in 53 markets in key cities or nationwide under the IQOS brand. For more information, please visit www.pmi.com and www.pmiscience.com.

# # #

Contact information

Martin Schatzky
Philip Morris International
T. +41 (0)58 242 4500
E. Martin.Schatzky@pmi.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Rimini Street Celebrates 15 Years of Delivering Client Success28.9.2020 16:00:00 EESTPress release

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of business software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced that September marks the 15th anniversary of the Company’s founding in 2005 to redefine the enterprise software support market. The Company set out to deliver a premium, ultra-responsive support model, and bring choice and value to software licensees around the world. Since its inception, Rimini Street has continually set the premium standard on what Oracle and SAP licensees should expect from their support experience. The Company is responsible for delivering a long history of innovative “firsts” for the enterprise software support market, including guaranteed ultra-responsive SLA’s, support for customizations at no additional cost, support for at least 15 years without required upgrades or updates and saving clients nearly $5 billion in total maintenance and support cos

Epic Fantasy 3DMMORPG Forsaken World: Gods and Demons Open for Pre-registration Today28.9.2020 16:00:00 EESTPress release

Forsaken World: Gods and Demons is an open-world fantasy MMORPG on an incredible scale. Dive into a world of never-ending adventure where treasure and glory awaits the victor. Raid a dragon's lair, search for lost artifacts, or kick back, relax and catch some fish in between epic adventures. The world around you will be influenced by your in-game decisions, with a storyline that allows you to determine the future of Calindor. Leave your mark and become a legend! This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200928005293/en/ Pre-register now on the App Store and Google Play (Graphic: Business Wire) Endless Character Customization Change your class at any time and specialize your character just the way you want it. Mix and match abilities and talents to fit your combat style, and customize your appearance to bring out the true you, right down to the facial expression. No two players are the same in FW: GD. A Stunning World Im

Hyprevention Raises New Financing to Commercialize Spinal Implant Product V-STRUT© in the USA.28.9.2020 15:55:00 EESTPress release

Hyprevention has raised new financing to support the V-STRUT© Vertebral Implant product. The financing will be used to execute the commercialization plans for the US spinal fracture market. The V-STRUT© Vertebral Implant is indicated for use in the treatment of vertebral fractures. In May 2019, a US patent was granted for V-STRUT© and in March 2020, the device received FDA-510(k) clearance. “We are delighted that our existing investors have shown confidence in our product development efforts and commercialization plans for the US market by increasing their investment in the company,” says Cecile Vienney, CEO. The Hyprevention team has entered into a commercial relationship with DAWA Medical and has received several orders for the product from enthusiastic customers. DAWA Medical, a regional distributor of medical products, will promote sales in Florida, Illinois, Texas and Oklahoma. In addition to DAWA the company is in discussion with other commercial partners to bring the innovative

Mavenir acquires ip.access to expand OpenRAN radio portfolio for CSPs and Enterprise Private Networks28.9.2020 15:00:00 EESTPress release

Mavenir, a leading provider of end-to-end cloud-native Network Software Provider for Communications Service Providers (CSPs) announces today that it has acquired ip.access Ltd, a leading 2G, 3G, 4G and 5G-ready small cell solutions provider. This acquisition extends Mavenir’s leadership in OpenRAN radio on three fronts: Communication Service Providers: Adding 2G and 3G capabilities to the OpenRAN portfolio Enterprise: Adding a full suite of enterprise radio solutions for Mavenir’s Private Network offerings, including OnGo/CBRS certified solutions Nontraditional Networks: Leveraging market leading software defined vRAN solutions for Aviation, Maritime, Rural and Remote networks with next generation solutions in the air, on land and at sea. “Operators are looking to transform their 2G/3G networks as they migrate to 4G and 5G,” said Pardeep Kohli, President and CEO, Mavenir. “We expect to provide a seamless, multi radio access technology single RAN offering for those operators that allows

PCI Pharma Services Introduces First-of-its-Kind Digital Platform to Provide Clients with Real-Time Supply Chain Data and Analytics28.9.2020 13:00:00 EESTPress release

PCI Pharma Services (PCI), a leading pharmaceutical and biopharmaceutical global outsourcing solutions provider today announced the launch of pci | bridge, an innovative digital platform that will give customers immediate visibility into their clinical and commercial supply chain, and provide instantaneous data and insights to inform decision-making. Created using an agile development process whereby key clients collaborated and provided input, PCI built an industry-leading digital interface that delivers greater transparency to clients – saving time and resources to ultimately help bring life-changing therapies to patients faster. The launch of pci | bridge is one of many initiatives that PCI has undertaken to incorporate digital transformation as core to its business strategy. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200928005059/en/ pci | bridge digital platform logo (Photo: Business Wire) “At PCI, we are always loo

L&T Technology Services Selected to Support Tenneco DRiV™ Ride Performance Division28.9.2020 12:10:00 EESTPress release

L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a global leading pure-play engineering services company, today announced that it has been selected to provide engineering services for Tenneco’s DRiV original equipment (OE) Ride Control business group. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200928005232/en/ LTTS will be setting up a HUB Development Center which will focus on shared Engineering Services for DRiV. (Photo: Business Wire) LTTS will set-up a HUB Development Center to provide DRiV with additional engineering capacity in conventional damper and component development. The HUB Development Center will also provide a hybrid, unified engineering business model for supporting established domains such as mechanical, product lifecycle management (PLM) and digital engineering. LTTS will also work with DRiV to modernize and upgrade engineering tools and create a global benchmarking framework for product lifec

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom