Philip Morris Italia Aims for a Smoke-Free Future by 2030
Company plans to invest €1 billion over the next decade in transforming Italy's tobacco landscape.
Pasquale Frega, the newly appointed President and CEO of Philip Morris Italia, has announced an ambitious vision for the Italian market, predicting that Italy could become the first European Union country to entirely phase out traditional cigarettes within the next ten years.
Frega, who began his tenure on February 20, 2025, brings extensive international experience from his previous role at Novartis, where he oversaw operations in Canada and Latin America.
The stated objective for Philip Morris International (PMI) is to generate two-thirds of its global net revenues from smoke-free products by 2030. PMI is undergoing a significant transformation, focused not only on corporate restructuring but also on scientific and technological advancements aimed at delivering a smoke-free future.
Philip Morris Italia is positioned as a core component of this transformation, leveraging an integrated end-to-end supply chain that encompasses advanced agricultural practices, innovative manufacturing, research and development, consumer services, and product lifecycle management.
The Italian operations are linked to approximately 8,000 suppliers and service businesses, employing around 41,000 individuals across the country.
Recent trends indicate that more than two million smokers in Italy have transitioned to PMI's IQOS devices, thus abandoning conventional cigarettes.
This shift highlights the potential for both industry and government to collaborate in fostering a stable regulatory environment conducive to the ongoing transformation.
Frega expressed optimism regarding the current regulatory framework, emphasizing that PMI has already invested over $14 billion globally to research and validate non-combustion products.
These investments focus on toxicological assessments, clinical research, and post-market studies to ensure product safety and efficacy.
In 2022, PMI expanded its portfolio by acquiring Swedish Match, a leader in oral nicotine products, thereby creating a substantial global player with brands such as IQOS and ZYN.
Furthermore, the U.S. Food and Drug Administration has recognized certain IQOS devices and Swedish Match’s snus as Modified Risk Tobacco Products, marking a significant milestone in public health protection efforts.
Estimates suggest that by the end of 2024, approximately 38.6 million smokers worldwide will have converted to PMI’s smoke-free alternatives.
Since initiating its transformation in Italy in 2014, the company remains committed to a target of becoming the first EU nation to fully eliminate traditional cigarettes by 2035.
Regarding future investments, PMI has established collaborative agreements with Italy's Ministry of Agriculture and Coldiretti since 2011, contributing to long-term sustainability, training, and competitiveness in the agricultural sector.
These ongoing agreements have resulted in over €2 billion in cumulative investments, positioning Philip Morris as the largest private investor in Italy’s tobacco supply chain.
A recent renewal of the agreement extends their strategic partnership for another ten years, potentially bringing total investments up to €1 billion.
Overall, PMI’s contributions to the Italian economy are estimated to approach €10 billion.
Philip Morris’s key production and research facilities are located in the Bologna area, specifically in Crespellano and Zola Predosa.
The Philip Morris Manufacturing & Technology Bologna site serves as a center of excellence for large-scale production of smoke-free products and employee training.
It produces tobacco sticks that are sold domestically and exported to over 50 markets, with an export value surpassing €1.9 billion.
The Crespellano facility represents the largest new factory built in Italy in the past 25 years, with investments exceeding €1.5 billion and employing nearly 3,000 individuals from 41 different nationalities involved in global research and development initiatives.
Concerns persist regarding potential impacts from new U.S. tariffs, with PMI noting that such measures could influence international trade, product availability, supply chains, and logistics.
In light of these uncertainties, the company remains hopeful that its supply chain will adapt effectively.
Frega, who began his tenure on February 20, 2025, brings extensive international experience from his previous role at Novartis, where he oversaw operations in Canada and Latin America.
The stated objective for Philip Morris International (PMI) is to generate two-thirds of its global net revenues from smoke-free products by 2030. PMI is undergoing a significant transformation, focused not only on corporate restructuring but also on scientific and technological advancements aimed at delivering a smoke-free future.
Philip Morris Italia is positioned as a core component of this transformation, leveraging an integrated end-to-end supply chain that encompasses advanced agricultural practices, innovative manufacturing, research and development, consumer services, and product lifecycle management.
The Italian operations are linked to approximately 8,000 suppliers and service businesses, employing around 41,000 individuals across the country.
Recent trends indicate that more than two million smokers in Italy have transitioned to PMI's IQOS devices, thus abandoning conventional cigarettes.
This shift highlights the potential for both industry and government to collaborate in fostering a stable regulatory environment conducive to the ongoing transformation.
Frega expressed optimism regarding the current regulatory framework, emphasizing that PMI has already invested over $14 billion globally to research and validate non-combustion products.
These investments focus on toxicological assessments, clinical research, and post-market studies to ensure product safety and efficacy.
In 2022, PMI expanded its portfolio by acquiring Swedish Match, a leader in oral nicotine products, thereby creating a substantial global player with brands such as IQOS and ZYN.
Furthermore, the U.S. Food and Drug Administration has recognized certain IQOS devices and Swedish Match’s snus as Modified Risk Tobacco Products, marking a significant milestone in public health protection efforts.
Estimates suggest that by the end of 2024, approximately 38.6 million smokers worldwide will have converted to PMI’s smoke-free alternatives.
Since initiating its transformation in Italy in 2014, the company remains committed to a target of becoming the first EU nation to fully eliminate traditional cigarettes by 2035.
Regarding future investments, PMI has established collaborative agreements with Italy's Ministry of Agriculture and Coldiretti since 2011, contributing to long-term sustainability, training, and competitiveness in the agricultural sector.
These ongoing agreements have resulted in over €2 billion in cumulative investments, positioning Philip Morris as the largest private investor in Italy’s tobacco supply chain.
A recent renewal of the agreement extends their strategic partnership for another ten years, potentially bringing total investments up to €1 billion.
Overall, PMI’s contributions to the Italian economy are estimated to approach €10 billion.
Philip Morris’s key production and research facilities are located in the Bologna area, specifically in Crespellano and Zola Predosa.
The Philip Morris Manufacturing & Technology Bologna site serves as a center of excellence for large-scale production of smoke-free products and employee training.
It produces tobacco sticks that are sold domestically and exported to over 50 markets, with an export value surpassing €1.9 billion.
The Crespellano facility represents the largest new factory built in Italy in the past 25 years, with investments exceeding €1.5 billion and employing nearly 3,000 individuals from 41 different nationalities involved in global research and development initiatives.
Concerns persist regarding potential impacts from new U.S. tariffs, with PMI noting that such measures could influence international trade, product availability, supply chains, and logistics.
In light of these uncertainties, the company remains hopeful that its supply chain will adapt effectively.
Translation:
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