CREATING SOMETHING BETTER FOR THE WORLD'S SMOKERS - OUR APPROACH TO NEXT GENERATION PRODUCTS - Imperial Brands
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CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS OUR APPROACH TO NEXT GENERATION PRODUCTS www.imperialbrandsplc.com
WELCOME
Imperial Brands is a dynamic Read on to
CONTENTS
AN EXCITING FUTURE 03
fast moving consumer goods find out how OUR NGP TIMELINE 05
company borne out of a strong we’re creating
tobacco heritage. something THE PUBLIC HEALTH OPPORTUNITY 06
better for the
We have continually evolved THE RISK SPECTRUM 07
world’s smokers.
to embrace changing market
dynamics and develop new PRODUCTS EXPLAINED: VAPOUR 09
consumer experiences. VAPOUR PRODUCTS TODAY 10
We are currently witnessing the biggest
consumer shift in our history, with millions VAPOUR RESEARCH AND DEVELOPMENT 11
of smokers around the world choosing to
switch to less harmful Next Generation THE EVOLVING VAPOUR DEBATE 13
Products (NGP).
GETTING REGULATION RIGHT 14
As a result, we are increasingly focusing
our attention on developing and expanding PRODUCTS EXPLAINED:
our NGP portfolio. We want to reduce the SNUS AND HEATED TOBACCO 15
health impact of tobacco by encouraging
smokers to switch to products with lower CREATING SOMETHING BETTER
health risks. FOR THE WORLD’S SMOKERS 16
AN
EXCITING
FUTURE
We have a thriving Along the way we have built our
knowledge and expertise, and developed
and expanding Next an enduring relationship with the original
Generation Products inventor of the e-cigarette, Hon Lik.
(NGP) business that’s Our NGP subsidiary business Fontem
Ventures acquired Mr Hon’s global patent
committed to creating portfolio for vapour technologies in 2013
and welcomed him to the business as the
something better for head of our Research and Development
the world’s smokers. team in China – a position he still holds
to this day. vapour
That means offering smokers less harmful The acquisition of the pioneering is the largest
alternatives to cigarettes – a new range of blu vapour brand two years later was
products that have the potential to reduce NGP category
another important milestone. blu has
smoking-related disease. since become the focal point of our and offers the
Our focus on researching, developing and NGP portfolio and is available in an greatest
commercialising products that reduce harm ever-expanding range of formats to potential for
has created a strong track record in science maximise its appeal to adult smokers
and NGP. and vapers. long-term
Last year we further strengthened our
sustainable
In the 1950s Imperial opened its first
scientific laboratory and played a leading NGP credentials by acquiring the Nerudia growth.
role in developing new equipment and business, substantially enhancing our
techniques for analysing tobacco and smoke. innovation capabilities, as well as our
This paved the way for decades of research manufacturing and science expertise.
into tobacco and non-tobacco products.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 03
AN EXCITING FUTURE
We have never been better placed
to be able to transition consumers
from cigarettes to something better.
Nerudia is focused on creating a right way and that consumers understand I hope you enjoy learning more
compelling pipeline of innovative the benefits they can offer. We need a about our approach to NGP.
products and its entrepreneurial spirit legislative framework that allows this We’ve made great progress so far
is proving to be a winning addition category to flourish and gives consumers and have big plans for the future.
to our own vibrant culture. the confidence to trial and ultimately I’m confident that over the next
switch to these less harmful products. few years we will have established
In assembling the right components for
NGP as a significant part of the
success, we have deliberately favoured The UK is particularly encouraging from
Imperial Brands business.
the vapour (EVP) opportunity as it’s by a regulatory perspective; for example,
far the largest NGP category. Public Health England recently said:
With the technology and scientific “Vaping poses only a small fraction
insights available to us today, we have of the risks of smoking and switching
never been better placed to be able to completely from smoking to vaping
transition smokers from cigarettes conveys substantial health benefits over
to something better. continued smoking. Based on current
knowledge, stating that vaping is at least
By the close of 2018 we will have
95 per cent less harmful than smoking
invested more than £700 million in NGP
remains a good way to communicate
and we will continue to increase that
the large difference in relative risk
level of investment to drive innovation,
unambiguously, so that more
improve the smoker conversion rate and
smokers are encouraged to
encourage smokers to switch to less
make the switch from
harmful alternatives.
smoking to vaping.”
Governments, regulators and public
health bodies have a key role to play here. Alison Cooper
It’s essential that NGP are regulated the
Chief Executive
Imperial Brands
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 04
OUR NGP TIMELINE
We understand society’s
concerns about the health 1950s Established our first R&D laboratory, paving the way
for decades of research into understanding our products.
1970s
risks of smoking and Partnered with the UK Government’s Independent Scientific Committee on
recognise that we have Smoking and Health to develop a tobacco substitute called New Smoking Material.
an important role to play
in reducing the harm 2005 Acquired 43.5 per cent of the shares
in the Swedish snus business Skruf.
caused by cigarettes.
Since establishing our first research
and development (R&D) laboratory
2008 Took full ownership of Skruf after
acquiring the remaining shares.
2012
in the early 1950s, we have invested
Set up Fontem Ventures to focus
substantial sums in tobacco research
solely on Next Generation Products.
and will continue to do so in the future.
2013
We uphold high standards, rigorously
Acquisition of Hon Lik’s global patent portfolio for
testing and analysing our products
vapour technologies from Dragonite International Limited.
to ensure we continually build our
knowledge and are able to meet our
standards of care for consumers.
In recent years we have increasingly
2014 In the UK Fontem Ventures launches its first
e-cigarette brand Puritane.
focused our innovation and R&D
work on Next Generation Products,
while further enhancing our capabilities
with value creating acquisitions.
2015 Acquired blu, one of the most popular and
best-selling vapour brands in the world.
2017 Acquired the UK-based vapour innovation
business Nerudia.
2017 Began trialling our own heated tobacco
products in Asia and Europe.
2018 International roll-out of my blu begins, taking the latest and most
advanced version of the brand into significantly more markets.
2018 Fontem Ventures acquires equity stake in Cosmic Fog
Vapors, a leading innovator in high quality vapour liquids.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 05
THE PUBLIC “With careful management
and proportionate regulation,
harm reduction provides an
HEALTH opportunity to improve the
lives of millions of people.”
OPPORTUNITY
UK Royal College of Physicians, 2017
Cigarettes are a WHAT IS HARM REDUCTION? “The wide availability of e-cigarettes
known cause of serious When we talk about harm reduction, we mean
as an alternative to tobacco is likely,
disease in smokers and encouraging smokers to switch to alternative products overall, to be playing a positive role in
many countries have with lower health risks. supporting tobacco harm reduction.”
Tobacco harm reduction is based on a well-established
stated aims for future public health concept that recognises that adults choose British Medical Association, 2017
generations to be smoke- to participate in risky behaviours and focusses on
modifying rather than eliminating these behaviours.
free. Yet over a billion
There are many examples of this approach in public
adults around the world policy, including the regulation of driving. Here the risk
still choose to smoke and to the individual and society is shaped and reduced not by “If the great majority of tobacco smokers
eliminating cars, but through driver education and vehicle who are unwilling or unable to quit
will continue to do so safety standards.
would switch without delay to using
well into the future. Achieving harm reduction in tobacco relies on our ability to
an alternative source of nicotine with
provide consumers with products that pose less risk to their
NGP – particularly vapour health. Until recently, these have been few and far between lower health risks, and eventually
products, which do not contain
tobacco – are seen as representing
and consisted largely of licensed nicotine replacement products, stop using it, this would represent a
such as gums and patches, and snus, an oral tobacco product
a less harmful alternative to cigarettes, that contains lower toxicants than cigarettes but which is not significant contemporary public
thereby creating a huge global public widely available. health achievement.”
health opportunity.
Now, a whole new generation of products is available. They haven’t been
Leading authorities like the US Food around long enough to generate epidemiological data, which looks at health World Health Organisation, 2016
and Drug Administration (FDA) are impacts over decades, and we agree that more research is needed into the
increasingly applying harm reduction long-term effects of their use. In the case of tobacco-free vapour products,
thinking and strategies to their public there’s growing consensus that the risks they pose are likely to be substantially
health objectives. In the UK, several lower than the risks posed by smoking cigarettes.
highly regarded public health bodies
have voiced their support for vapour It’s important to view harm reduction through a spectrum of risk and this is set out
products and the positive role they on the following two pages.
can play in harm reduction.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 06
THE RISK Tobacco products that do not
involve combustion are known to
produce far fewer and much lower
SPECTRUM levels of toxicants compared to
conventional cigarettes.
Smoking combustible tobacco products like
cigarettes is a known cause of serious disease
in smokers, including lung cancer, heart
disease and emphysema. IBL E TOBACCO
UST
O MB
N-C
Public health experts worldwide have concluded that it is the NO
toxicants in cigarette smoke, not the nicotine, which is the
cause of smoking-related diseases. For this reason many
public health bodies have indicated NGP have a role to
play in tobacco reduction.
SNUS
TO
HE PR
BA
Tobacco products that do not involve combustion are
AT OD
CC
known to produce far fewer and much lower levels
ED U
O
CT R
S
FR
of toxicants compared to conventional cigarettes.
TO CTS
DU U
O O
EE
PR VAP
BA *
This means they have the potential to be less
CO
CC
harmful to health. AC
O
OB
Harm reduction can only be achieved if
ET
the alternative product is less harmful
L
than the one it is replacing and is appealing to
STIB
NE
consumers. Assessing alternative products OTI T
CIGA NIC EMEN
in this context requires them to be placed on C
COMBU
RET L A S
a spectrum of risk relative to conventional TES REP ODUCT
PR
combustible tobacco products, such as
cigarettes.
The risk spectrum indicates the level
of toxicants that different products
emit, based on current evidence, and
highlights the range of non-combustible LEVEL OF TOXICANTS
alternatives to cigarettes that are
available to consumers.
*Including hybrid devices that combine non-combustible and
e-cigarette technologies.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 07
THE RISK SPECTRUM Our own research
has shown that
vapour products
emit toxicants that
are up to 99% lower
than conventional
cigarettes.
Joe Thompson
Director of Product Science
LEVEL OF TOXICANTS
HEATED TOBACCO SNUS VAPOUR NICOTINE REPLACEMENT
Heated tobacco* products are devices Snus is an oral tobacco product Vapour products, also known as Licensed medicinal products,
that heat tobacco to release flavour and manufactured using a pasteurisation e-cigarettes, do not contain tobacco and such as nicotine replacement products,
nicotine aerosol but not at a high enough process, which has a long history deliver nicotine and flavour in the form are authorised as medicines by relevant
temperature to burn it. of use in Scandinavian countries, of vapour. There are also vapour products national regulators and scientific evidence
particularly Sweden. that do not contain nicotine. There is over many years has demonstrated that
This results in significantly lower levels
growing public health consensus that these products are significantly less
of toxicants, although independent Scientific data, including long-term
these products offer a significantly less harmful to health than cigarettes.
research is currently limited and few population studies conducted by
harmful alternative to smoking.
products are in the market. independent researchers, demonstrates However, they have limited appeal to
that the health risks associated with Our own research has shown that smokers because they lack the sensorial
Heated tobacco is a smaller NGP category,
snus are considerably lower than those vapour products emit toxicants that and behavioural aspects of the smoking
growing most notably in Japan.
associated with cigarette smoking. are up to 99 per cent lower than experience and therefore have a poor
We currently do not sell heated tobacco conventional cigarettes. In addition, success rate at replacing smoking.
We have a strong and growing
products but have developed our own there is emerging evidence that these
snus business, with brands like Skruf Harm reduction without consumer appeal
devices and these are being tested with products encourage reduced cigarette
and Knox, and see considerable provides little in the way of public health
consumers in Asia and Europe. consumption and cessation, even among
opportunities for future growth in benefits and as a result, we do not make
those smokers who do not intend to quit
Hybrid devices that combine new and existing markets. or sell these products.
or reject other support.
non-combustible and e-cigarette
technologies sit within heated tobacco Vapour is by far the largest NGP
on the risk spectrum. We do not category. Our pioneering blu brand offers
currently sell these products. consumers exceptional nicotine and
nicotine-free vaping experiences. blu is
one of the best-selling vapour brands in
the world and is available in a growing
number of international markets.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 08
PRODUCTS EXPLAINED
VAPOUR
These products do not contain tobacco and Fontem
deliver nicotine and flavour in the form of Ventures was
an aerosol, popularly referred to as ‘vapour’. the ideal partner.
THE ORIGIN OF VAPOUR PRODUCTS Their business
The idea behind the e-cigarette was first conceived by Mr Hon Lik in 2001. philosophy,
A long-time smoker, Mr Hon had been using nicotine patches as a means dedication to
of cutting down on his cigarette consumption. However, the patches did not
provide a satisfying nicotine delivery comparable to smoking and left him innovation and
with a hankering for ‘real’ cigarettes.
high standards,
This prompted him to contemplate alternative ways of taking in nicotine
through the lungs. Having had a fascination for electronics throughout his combined with a
youth and with a pharmaceutical background, where he specialised in the
removal of harmful substances from ingredients, Mr Hon began experimenting start-up culture,
with a cylinder that contained a wire which heated a liquid containing nicotine.
was exactly what
Rather than burning tobacco, this very first e-cigarette vaporised the liquid,
which was then inhaled. I was looking for.
In 2003, after experimenting with several prototypes and test phases,
Mr Hon filed his first patent on his invention.
A decade later, Fontem Ventures acquired Dragonite and its
global patent portfolio for vapour technologies, securing the
services of Mr Hon in the process. Since then our partnership
has gone from strength to strength and Mr Hon continues to
lead our research and development activities in China.
Hon Lik
Head of Fontem
Ventures China
Vapour R&D
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 09
VAPOUR PRODUCTS TODAY
Vapour is the largest and most developed opportunity
within the NGP space, accounting for around 80 per cent
of all NGP available today and are enjoyed by 30 million
consumers worldwide.
The category has experienced phenomenal my blu is a pod format and combines a
growth in recent years and is now high-performance vaporiser with a simple
estimated to be worth around $7 billion liquid pod system. The device takes just
a year in sales. This is expected to rise 20 minutes to charge and lasts all day.
to as much as $30 billion a year by 2020,
blu ACE is our latest open system
as more and more smokers switch.
product and the most powerful device
Vapour also provides consumers with in our portfolio. It comes in an all-in-one
the greatest choice of devices, with a stainless steel housing, with a built-in
wide range of flavours and nicotine liquid tank, and delivers more puffs
strengths available. This optionality per charge than competitor products.
is integral to smokers switching to
Flavours are a key aspect of the
vapour, giving them the ability to change
vaping experience and play an
their flavour experience and control
important role in attracting and
nicotine levels.
retaining smokers. Both my blu
Our vapour brand is blu, one of the and blu ACE provide consumers myblu and
best-selling in the world and available with a broad portfolio of blu ACE are our
in an increasing number of markets. flavours in multiple
nicotine strengths. newest devices
myblu and blu ACE are our newest
devices and reflect our ongoing and reflect
commitment to giving consumers the our ongoing
best vaping experience.
commitment to
giving consumers
the highest
quality vaping
experience.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 10VAPOUR RESEARCH
AND DEVELOPMENT
In recent years we have increased investment in our
global vapour research programme, regularly publishing
studies in leading international peer-reviewed journals.
Imperial Brands and Fontem Ventures We conduct extensive testing on each
frequently collaborate with independent product to scientifically demonstrate
institutions, regulatory bodies and that it substantially reduces the risk
technology leaders to conduct research of harm compared to smoking.
that is highly relevant to our consumers,
As part of our product assessment,
health experts and international
we analyse raw ingredients and
policy-makers.
materials to ensure they adhere
Our studies are guided and shaped by to comprehensive principles of
the ongoing public policy debate around design and quality, as well as
vapour products and we regularly seek developing strict manufacturing
advice from science experts, academics standards. To ensure our e-liquids
and the public health community to are of the highest industry
ensure we produce relevant studies. standard, we also employ a large
This involves addressing research gaps, team of experienced toxicologists
inviting third party professionals to and other specialists to conduct
critique our science through the process detailed risk assessments on all
of peer reviews and regularly presenting of our product ingredients and
our research at international conferences. components. We also make regular
submissions to governments on the
Our studies
We have also built partnerships and
testing models with a number of leading
ingredients used in our products. are guided
independent laboratories to support
our product assessment. We share the and shaped
results of our research with national and
international standards bodies to help by the ongoing
develop robust testing and manufacturing
standards. We see this as critical to public policy
support consumer and regulatory
expectations and to maximise the harm debate around
reduction potential of vapour products.
vapour products.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 11VAPOUR RESEARCH AND DEVELOPMENT
We have developed a tiered approach to product
assessment, which can be employed to evaluate whether
or not our products are both significantly less harmful
than smoking cigarettes and are an effective alternative
for smokers.
We apply innovative systems and the Fontem Ventures also conducted one of
latest technologies to assess and analyse the first long-term vapour clinical studies,
vaping products. We follow a three step assessing the use of the Puritane brand
process that incorporates non-clinical over two years.
studies, clinical studies, and population
impact assessment.
The findings of this study showed there
were no safety concerns in smokers using In a nutshell, best
estimates show
Research conducted by Fontem Ventures Puritane for two years and no increase
showed that blu e-cigarette vapour is over in body weight, something which is
95 per cent less toxic than smoke from a frequently reported by smokers who
cigarette, contains over 99 per cent fewer choose to quit smoking. Moreover, the e-cigarettes are
95%
toxicants and carcinogens and does not use of the vaping product was associated
negatively impact indoor air quality. with a reduction in conventional cigarette
consumption and a reduced exposure to
Encouragingly, our clinical data has
cigarette smoke chemicals.
shown in biomarkers we have studied
that the reductions in levels of HPHCs We are very encouraged by the findings
following exclusive use of blu e-cigarettes from our scientific research programme
were almost indistinguishable from
reductions in smokers who stopped
so far and believe it underscores the
enormous potential of the category. less harmful
to your health
smoking altogether during the same time.
We are open and transparent about our
Other recently published clinical research research and have dedicated websites
has also shown that smokers who have
switched to vaping have significantly
where our work can be seen:
www.imperialbrandsscience.com
than normal
cigarettes.
lower exposure to carcinogens and
www.fontemscience.com
toxicants found in cigarette smoke, with
reductions largely indistinguishable from
complete smoking cessation or the use of
licensed nicotine replacement products. Public Health England
www.fontemscience.com
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 12THE EVOLVING E-cigarettes are not a
gateway to smoking – in the
VAPOUR DEBATE UK, use of e-cigarettes is
limited almost entirely to
those who are already using,
Some regulators and public health officials have
or have used, tobacco.
expressed concerns that EVPs could act as a ‘gateway’
to tobacco use among non-smokers, or that vaping Royal College of
Physicians, 2016
could ‘renormalise’ smoking.
These fears are unfounded, primarily UK Government advice to employers
because the statistics to date do not encourages workplaces to adopt
support the view that significant numbers pro-vaping policies that make it as
of non-smokers are regularly vaping. easy and convenient as possible for
In fact the opposite is true with data smokers to switch on the basis that
showing that vapour products are actually there is “currently no evidence of harm
acting as a gateway from or ‘roadblock’ from second hand e-cigarette vapour.”
to smoking, accelerating declines in
This view is shared by the UK National
smoking rates.
Health Service, Chartered Institute for
Our own research does not show vaping Environmental Health, Cancer Research
is a gateway, neither does research by UK and many others.
numerous public health bodies. The UK
The scientific evidence to date indicates that
Royal College of Physicians described such
the potential health risks associated with
claims as ‘unfounded’ and Public Health
vaping are highly likely to be much lower than
England said: ‘there is no evidence so far
continued cigarette smoking.
that e-cigarettes are acting as a route to
smoking for children or non-smokers.’ However, evidence from the USA and UK suggests
consumer understanding of the risks of vaping
Other questions have been asked about the
relative to smoking is not well understood. For example,
potential effects of vaping on bystanders.
research by the anti-smoking group ASH suggests that
Fontem Ventures’ published scientific many more adults consider vapour products to be as
research shows that indoor vaping does harmful as cigarettes.
not release chemicals or toxins into the
This should be concerning for all stakeholders and needs
air at levels that would pose any air quality
urgently addressing. Governments and public health bodies
issue to bystanders. This is consistent with
around the world have a clear responsibility to provide accurate
other studies of this type which provide
and consistent messaging to ensure that smokers can make
evidence for sensible regulation.
well informed decisions.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 13GETTING As vapour
products do
REGULATION
not contain
tobacco, they
RIGHT
should be
excluded from
all existing
We support proportionate evidence-based regulation and future
that encourages smokers to use alternative products tobacco
that have the potential for reduced harm. We believe legislation,
there should be a clear distinction between tobacco
and non-tobacco products.
including
As vapour products do not contain highest product quality standards and excise.
tobacco, they should be excluded from are not marketed or presented in a way
all existing and future tobacco legislation, that directly appeals to children or
including excise. non-smokers.
Vaping should be permitted in public Advertising should be permitted via TV,
places but vapers should be courteous radio, internet, print and outdoor media.
to those around them. It is unjustified to Sampling activities for adult smokers
apply smoke-free environment legislation and vapers users should also be allowed
to vaping products, since they are not in line with regulation for other adult
tobacco products, do not contain tobacco, consumer goods, such as alcohol.
do not generate side-stream emissions
Vaping products are for adult smokers,
and pose no known risk to bystanders
and current vapers. We fully support Tobacco-based products,
based on current science.
and advocate for legislation prohibiting such as the emerging category of
We believe it should be up to individual sales of vaping products to children and heated tobacco products, should be
establishments and business owners voluntarily implement a number of youth treated in the same way as tobacco.
to decide whether or not to permit vaping protection initiatives, including online
In the absence of independent data and
inside their premises. age-verification mechanisms and clear
public health endorsement, all tobacco
product labelling that states “not for sale
A growing body of research shows products, new and existing should be Until clear scientific evidence is available
to minors”.
flavours play a critical role in attracting taxed like tobacco. Strict enforcement for all NGP categories, we urge regulators
and retaining smokers into vaping. Vaping products should not be subject of existing tobacco regulatory frameworks to take a responsible approach and to
Flavoured e-liquids should therefore to excise tax or incorporated into is necessary, with no labelling or draw clear distinctions between tobacco
be permitted provided they meet the existing tobacco excise frameworks. marketing exemptions. and non-tobacco products.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 14PRODUCTS EXPLAINED
HEATED SNUS
TOBACCO Snus is an oral tobacco product,
which is manufactured using a
pasteurisation process under strict
Heated tobacco is a smaller NGP category, showing quality and regulatory controls.
notable signs of growth in Asia. Heated tobacco Snus is sold in different formats,
products, also referred to as heat-not-burn, heat a such as loose or pouched products,
portion or rod of tobacco, releasing nicotine and other and is available in a wide variety of There
tobacco emissions at substantially lower levels than tobacco and non-tobacco flavours. is a large
combustible cigarettes.
Snus has a long history of use in Scandinavian body of
evidence that
In late 2017 we began trialling our own heated tobacco products in Asia and Europe. countries, most notably Sweden. Scientific data,
including long-term population studies conducted
Regulatory and public health bodies continue to assess the risk profile of heated
shows snus
by independent bodies, demonstrates that the
tobacco, with the UK Committee on Toxicity (COT) recently stating that although
health risks associated with snus are considerably
it was unable to assess the absolute risk ‘the exposure to compounds of concern
lower than those from cigarette smoking.
in using heat-not-burn tobacco products is reduced compared to that from
conventional cigarette smoke’. Swedish males have the lowest rate of
use provides
Similarly, the US FDA advisory body, TPSAC (Tobacco Products Scientific Advisory
tobacco-related mortality in the EU and the lowest
rate of lung cancer, as well as the lowest male
a viable
Committee) has concluded that certain heated tobacco products reduce the exposure
of the individual to harmful components but that additional studies are required to
death rate from smoking-related cardiovascular
diseases and the lowest male death rate from
consumer
evaluate the final nature and extent of potential harm reduction.
Whilst heated tobacco products have the potential to reduce the exposure to
other cancers that are attributed to tobacco.
alternative
Independent evidence has concluded that
harmful or potentially harmful chemicals, it is unclear at this stage the extent
to which these products presents less risk of harm or can reduce the risks of
the oral use of snus does not seem to be linked to cigarettes.
to the risk for cancer of the oral cavity or lung,
tobacco-related diseases.
despite Sweden having the same EU average
We believe that further comprehensive, peer-reviewed independent scientific for tobacco consumption.
research should be conducted to review the reduced risk potential of heated
There is a large body of evidence that shows
tobacco products.
snus use provides a viable consumer alternative
In our view, unlike vapour products, heated tobacco products contain tobacco to cigarettes and we have a strong presence in
and should therefore be regulated and taxed as tobacco products. this category through our snus business Skruf.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 15CREATING SOMETHING
BETTER FOR THE
WORLD’S SMOKERS
At the beginning of this report Chief That’s an ambitious but achievable This is a brand that provides more
Executive Alison Cooper outlined our target and exponential growth of this than just functional delivery; it offers
commitment to creating something nature requires three things: ‘something better’ – a better vaping
better for the world’s smokers – providing
smokers with a portfolio of products that
• Excellence in innovation: developing
experience than competitor brands
and a better risk profile than cigarettes
Each time we
transition a
products that deliver the best consumer
are less harmful than cigarettes. and other tobacco-based NGP.
experience, and
In assembling the right components to As you will have read earlier in the report,
deliver this, we’ve focused on vapour,
• Strong brand equity: creating a brand
that truly engages the consumer.
our own research shows that blu’s vapour smoker to a
the biggest NGP category and the one is over 95 per cent less toxic than smoke
that has the greatest potential. • Omni-channel capabilities: vapour from a cigarette, contains up to 99 per cent tobacco-free blu
products are sold in a broader range fewer toxicants and carcinogens and does
There are currently 30 million vapers
worldwide versus seven million users
of channels than tobacco, such as not negatively impact indoor air quality. offering we are
online and specialist vape stores.
of heated tobacco products. We currently
have half a million of those vaping We believe we have that winning
Each time we transition a smoker to a
tobacco-free blu offering we are moving moving them to
consumers and we aim to increase
that number to eight million by 2020.
combination with the blu franchise. them to a product that is considerably
less harmful. a product that is
blu is a pioneering vapour brand.
It’s consistently rated as one of the Historically blu’s been available in four
core markets – the USA, UK, Italy and
considerably
very best available and generates a real
emotional connection with consumers. France – where it’s been steadily building
a loyal following of consumers. We’re now
less harmful.
substantially adding to those numbers as
we expand the brand’s international profile.
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 16CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS
The rollout to 2020 will continue at
pace and along the way we’ll be blu is a pioneering
continually improving the consumer
experience with the game-changing vapour brand. It’s
innovations being developed by our
dynamic innovation arm, Nerudia. consistently rated as one
We’re also using innovation to simplify
our products. This reduces cost, enabling
of the very best available
us to scale and commercialise our
operations more rapidly. and generates a real
Our growth plans are bold and exciting. emotional connection
Tobacco will be our core business for
many years to come, generating the with consumers.
funds to invest in NGP. But over time
that balance will shift and you will see
NGP making a material and sustainable
contribution to our financial delivery,
as we accelerate the transition of
smokers to something better.
2020
MORE
More Markets, More Consumers MARKETS
2019
2018 > 20
MARKETS
2017
> 10
>5 MARKETS
MARKETS
Matthew Phillips
0.5m 1.5m 4m 8m Chief Development Officer
Imperial Brands
CREATING SOMETHING BETTER FOR THE WORLD’S SMOKERS 17You can also read
