Philip Morris International Inc. (NYSE:PM) is looking to move away from normal cigarettes.
Andre Calantzopoulos, the CEO of Philip Morris International Inc., recently said that the company is launching a new way to consume tobacco. This method involves heating tobacco to consume it, rather than burning it.
The Philip Morris International Inc. product that may replace cigarettes is called “Iqos.” It is a cylinder container that has a hole in each end. The end with the larger hole is where users place a tobacco stick in the device. The device heats the stick and the person gets their nicotine. It also includes a battery pack for charging the device.
Philip Morris International Inc. claims that Iqos is much more healthy than normal cigarettes. It even went so far as to claim its internal trials found it to be almost the same as quitting smoking. However, outside sources have yet to verify these claims, reports BBC News.
Philip Morris International Inc.’s idea to heat tobacco isn’t exactly new. A similar product was released in the 1980s. However, users complained of a charcoal aftertaste. They also said it was to complex to light. This product still required fire to get going, unlike PM’s new Iqos device.
Philip Morris International Inc. isn’t the only company looking into heat-based cigarettes. Glo is a new device from British American Tobacco that is similar to Iqos. It will be launching in Japan next month. Reynolds American, Inc. (NYSE:RAI) also sells the Revo in America, which still uses a flame, but only heats the tobacco, reports The Wall Street Journal.
PM stock was down slightly as of Wednesday morning.
More From InvestorPlace
- 5 Blue-Chip Stocks to Sell for December
- 10 Double-Whammy Dividend Stocks to Buy in 2017
- The 10 Best S&P 500 Blue-Chip Dividend Stocks to Buy Now