Japan: PMI to Sell Cheaper Versions of ‘Heets’ as it Launches iQOS 3

Big Tobacco Companies consider Japan as the ideal test ground for HnB tobacco products, since regular e-cigarettes are not allowed due to the country’s strict nicotine regulations. Additionally this nation is one renowned for having a high regard for cleanliness and health, hence non-combustible cigarettes are sought after as they are in line with these values.

Philip Morris, maker of Marlboro cigarettes, was the first tobacco company to start selling HNB products in Japan, followed by British American Tobacco (BAT) and Japan Tobacco Inc. Last Tuesday, the tobacco giant organised a global launch of its iQOS 3, the third generation device for its heat-not-burn tobacco products, whilst also announcing that they will be releasing a reduced-price version of some of their products.

PMI currently sells a pack of 20 HeatSticks, at 500 yen ($4.43). CEO Andre Calantzopoulos said that a new “HEETS” line will now be available at 470 yen a pack. “We want to cater to the entire population. From a pricing perspective, that will help product perception,” he said.

Target sales for safer alternatives are not being reached

This year, PMI has experienced a slower-than-expected growth in IQOS, after building a leading position in the global HNB market. Similarly, BAT has cut 10% off its target for revenue from electronic and noncombustible cigarettes, as it forecasts 900 million pounds ($1.2 billion), saying that it will not reach the expected targets this year.

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