The four major tobacco products under the UK ban: Accelerating the layout of cartridge-type e-cigarettes and heated tobacco devices

The four major tobacco products under the UK ban: Accelerating the layout of cartridge-type e-cigarettes and heated tobacco devices

Since the Sunak government of the United Kingdom announced a complete ban on the sale of disposable e-cigarettes in January, the four major international tobacco companies have made corresponding strategic adjustments and market layouts to adapt to changes in the UK's regulatory policies. According to information from tobacco companies' official websites, news websites and other channels, the two supremes have sorted out the strategic trends of the four major tobacco companies after the announcement of the one-time ban in the UK.

On January 28 this year, the Sunak government of the United Kingdom announced a complete ban on the sale of disposable e-cigarettes. Such devices refer to closed, non-refillable or rechargeable types of e-cigarettes. The ban aims to solve the problem of minors' addiction to e-cigarettes. It is currently expected that such products will be banned by April 2025.

The United Kingdom is the world's second largest e-cigarette market. The sudden ban on disposable e-cigarettes has forced the four major international tobacco companies (Philip Morris International, British American Tobacco, Japan Tobacco and Imperial Tobacco) to make corresponding strategic adjustments to adapt to changes in the UK's regulatory policies. According to information from tobacco companies' official websites, news websites and other channels, the two supremes have sorted out the strategic trends of the four major tobacco companies after the announcement of the one-time ban in the UK.

Philip Morris International: Vigorously promote cartridge-type and heat-not-burn devices

Regarding the UK's ban on disposable e-cigarettes, John Rennie, commercial director of Philip Morris International (PMI) UK and Ireland, mentioned that retailers must seize this critical moment in the UK market and adjust their nicotine category strategies accordingly. Specifically, Philip Morris International is looking forward to the promotion of cartridge-type e-cigarettes and heat-not-burn devices.

On August 6, Philip Morris International launched a new cartridge-type e-cigarette Veev One in the UK, priced at £8.99 per set. Rennie is very confident about the market development of Veev One:

"We are very pleased to introduce Veev One to the UK market at a critical moment in the transformation of the e-cigarette industry. As the UK market develops, Veev One, as a high-end, responsible and recyclable e-cigarette, will stand out on the basis of its success in the European market."

At the same time, Rennie was also keen to highlight his company's heat-not-burn product IQOS Iluma device. In response, Philip Morris International launched HEATWAVE OPEN, a digital trade engagement platform designed to provide online support for convenience retailers selling heated tobacco devices IQOS.

Silviu Miron, head of business planning for the UK and Ireland at Philip Morris International, mentioned,

"We recognize that digital platforms such as HEATWAVE OPEN play a vital role in supporting retailers at this critical moment in the UK market. HEATWAVE OPEN provides retailers with the tools, resources and products they need to not only cope with this transformation, but also thrive in the emerging smoke-free era."

British American Tobacco: The ban is "useless" and supports the new tax policy

In the early days of the ban announcement, British American Tobacco (BAT) CEO Tadeu Marroco stated that he believed that banning disposable e-cigarettes would not be "useful" and raising the smoking age limit would have "unintended consequences." Marrocco mentioned:

"In other countries, this policy has not worked well. Australia has a total ban, but the purchase volume of teenagers in the illegal market is very high, and the same thing has happened in Brazil."

At the same time, Marrocco also emphasized that the company's products are "mainly for adults" and "we are very cautious about this" in response to the surge in e-cigarette use among British teenagers.

From the perspective of British American Tobacco, although Marrocco believes that the ban on disposable e-cigarettes is not effective, he supports the new British e-cigarette tax policy in March this year. Since illegal products account for nearly one-third of the British market, he believes that the new tax policy will help crack down on illegal products and help British American Tobacco seize market share.

In the face of changes in the UK's e-cigarette policy, British American Tobacco continues its layout on new tobacco products. It is reported that the company has invested 30 million pounds to open an innovation center at its global research and development (R&D) headquarters, which is dedicated to researching modern oral nicotine bags, liquids and flavors for atomized e-cigarettes, heating products, and new products other than nicotine.

In addition, British American Tobacco has also taken action on the retail side. At the end of June, it plans to launch vending machines in bars and pubs to sell e-cigarettes and nicotine bags to increase product sales.

Japan Tobacco: Heated tobacco devices drive market expansion

Japan Tobacco (JT)'s new product growth point in the UK comes from heated tobacco, especially the heated tobacco device "Ploom X Advanced". The company's 2024 first-half financial report shows that "Ploom" has expanded to 21 markets around the world, and the UK is one of the important markets. According to local suppliers, "Ploom" has almost doubled since it was launched in the UK last September, and the market value of the heated tobacco category has increased by 8.9% annually.

Therefore, Japan Tobacco publicly confirmed in June that it would expand the sale of heated tobacco devices "Ploom X Advanced" and "Evo" cigarettes to Glasgow and Sheffield for retail. This is the first time they have been sold in channels outside of London to support the expansion of the UK market.

Mark McGuinness, the company's UK marketing director, said, "'Ploom' has achieved considerable growth in the past 12 months, and we have ambitious plans to bring this momentum to independent convenience channels outside of London in 2024. It is estimated that by 2027, as more and more consumers look for heated tobacco devices that are similar to traditional tobacco experiences but different from burning, the market value of the heated tobacco category will reach 400 million pounds." In addition, similar to Philip Morris International, Japan Tobacco UK launched a new online retail platform called "JTI 360", providing retailers with one-click query functions for news updates and price lists. Imperial Tobacco: Implementing a recycling program and launching a cartridge-type e-cigarette As early as December last year, Imperial Tobacco expressed its views on the possible ban. The company believes that disposable devices should not be banned outright, but existing laws should be more vigorously enforced and more severe penalties should be imposed for violations of sales age laws. A week before the ban was announced, Imperial Tobacco launched the 1,000-puff disposable e-cigarette product Blu Bar 1000. Yawer Rasool, the company's head of consumer marketing in the UK and Ireland, said at the time that disposable e-cigarette devices have been in great demand in recent years, and the new devices launched can meet retail demand.

Imperial Tobacco quickly took action in response to the official announcement of the disposable e-cigarette ban. The company publicly stated that it supports stricter e-cigarette regulations.

Lindsay Mennell Keating, the company's head of corporate legal affairs in the UK and Ireland, said, "We have called for stricter e-cigarette regulations for many years. We are glad that they finally realized that relevant regulations need to be formulated to catch up with market development."

It is reported that Imperial Tobacco has implemented a new recycling program that applies to all e-cigarette products, while encouraging retailers and consumers to handle disposable products responsibly.

At the same time, cartridge-type e-cigarettes are an important product promoted by the company in the UK. In late July, Imperial Brands released a new Blu Bar e-cigarette device, each cartridge can provide 1,000 puffs of use, priced at £5.99. "We believe Blu Bar e-cigarette kits will represent a lucrative sales opportunity for wholesalers and retailers, while providing them with another revenue stream prior to the proposed ban on disposable e-cigarettes," Yavel said.