Home » tobacco sin stocks » Could Philip Morris International Change The Cigarette Game?

Is this sin stock creating something worse? Or better?

Interesting news out of Asia with cigarette sin stock Philip Morris International (PMI)

Philip Morris International is well know for its international cigarette holdings like Marlboro, Chesterfield, and Parliament (and others).

And, like all cigarette manufacturers, they have a challenging balancing act to maintain: grow marketshare and increase profit while also not coming across as an addictive drug.

So here’s something that may actually diminish their sin stock status yet continue to help them grow…

In a recent article in Business Insider, they report that Philip Morris International is exploring the possibility of shifting away from cigarettes that burn to cigarettes that heat.

Sounds weird but it’s an interesting difference:

Traditional cigarettes burn, and that burning is not good. While it delivers the tobacco buzz, it’s carcinogenic.

E-cigarettes vaporize, which is okay but not as effective as…

PMI’s latest invention (which is taking off in Japan since 2016) heats tobacco leaves, giving a greater buzz to smokers versus e-cigarettes without the harmful side-effects of cigarette smoking.

Sales of this new product in Japan are outperforming expectations and already account for more than 7% of Japan’s tobacco sales.

Philip Morris could move these to an international market to create an ostensibly “healthier smoking experience” and thus build new marketshare that they couldn’t get to before.

You can be sure that competing tobacco sin stock companies are paying attention and have their full focus on this opportunity and the winner will be the one who races first to market with this device, especially in health-conscious markets.

Check out this really helpful Business Insider article: Tobacco giant sees tipping point ahead for phasing out cigarettes

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