"Our goal is to send Marlboro to a museum as a relic."
Philip Morris International CEO Jacek Olczak delivered that message to employees in 2023, laying out the company's "smoke-free future" strategy.
Philip Morris Korea moved to back up that vision on Tuesday, unveiling its liquid e-cigarette brand VEEV inPRIME and broadening a portfolio centered on smoke-free products. Following its heated tobacco device IQOS, the company is now pushing into the liquid vaping segment, accelerating its shift away from conventional cigarettes.
The move into liquid e-cigarettes reflects a broader market shift. While the number of conventional smokers is declining, demand for e-cigarettes is rising. According to the KDCA, the smoking rate last year stood at 17.9 percent — down 1 percentage point from the previous year — but the combined usage rate of liquid and heated tobacco e-cigarettes rose 0.6 percentage points over the same period.
Smoke-free products are also claiming a growing share of PMI's revenue. As of the second quarter this year, they accounted for about 42 percent of PMI's total net revenue. The company currently sells smoke-free products in 109 markets and has set a target of generating roughly two-thirds of total net revenue from smoke-free products by 2030.
The regulatory landscape for liquid e-cigarettes also shifted in April, when all liquid e-cigarettes — including those containing synthetic nicotine — were legally classified as tobacco products, subjecting them to taxation and sales and use regulations. With the category now inside the regulatory framework, competition among established tobacco brands is expected to intensify.
VEEV inPRIME pairs a replaceable pod with a rechargeable device, rather than using a disposable design. The product also features a closed-pod system that prevents users from manually refilling liquid or modifying the device.
The heating method sets it apart as well. The device uses what Philip Morris calls the AdvancedVape Induction System, which heats the liquid through induction, minimizing direct contact between the liquid and the heating element. It also includes a sensor that detects when liquid is running low and a "Responsive Draw" function that alerts users to the device's status through vibration during each puff.
The dedicated liquid pod launching alongside the device — VEEBI inPRIME — uses only pharmaceutical-grade natural nicotine and food-grade flavorings. It also delivers up to 1,400 puffs, more than competing brand pods.
Philip Morris Korea plans to expand distribution in stages. VEEV inPRIME went on pre-sale at official stores on Tuesday and will roll out to about 14,000 convenience stores nationwide and select vape shops starting Wednesday.
"It is meaningful to introduce a brand that has built trust in Europe to Korean consumers and to expand the options available to those looking to choose smoke-free products," said Kim Tae-hyung, Philip Morris Korea's senior director of consumer experience. "We will reach consumers through both IQOS and VEEV inPRIME."
siuu@heraldcorp.com
