On January 28th of this year, the UK government announced a complete ban on the sale of disposable e-cigarettes. This type of device refers to closed, non-refillable, or non-rechargeable e-cigarette types. The ban aims to address the issue of underage addiction to e-cigarettes, and it is currently expected to prohibit such products by April 2025.
The UK is the world's second largest e-cigarette market. The sudden ban on disposable e-cigarettes has forced the four international tobacco companies (Philip Morris International (PMI), British American Tobacco, Japan Tobacco, and Imperial Tobacco) to make strategic adjustments to adapt to the changing regulations in the UK. According to information from tobacco company websites, news websites, and other sources, 2FIRSTS has compiled the strategic movements of the four tobacco companies in the UK after the announcement of the disposable e-cigarette ban.
Philip Morris International (PMI) is aggressively promoting heat-not-burn (HNB) devices and electronic heated tobacco products.
John Rennie, Commercial Director of Philip Morris International's (PMI) UK and Ireland division, commented on the UK's ban on disposable e-cigarettes, stating that retailers must seize this key moment in the UK market and adjust their nicotine category strategy accordingly. Specifically, PMI is looking to promote pod systems and heated tobacco products in response.
On August 6th, Philip Morris International (PMI) launched a new pod system called Veev One in the UK, priced at £8.99 for a starter kit. Renie is highly confident in the market development of Veev One.
“At a crucial moment of transformation in the e-cigarette industry, we are thrilled to introduce Veev One to the UK market. As the UK market evolves, Veev One, as a premium, sustainable, and recyclable e-cigarette, is set to stand out from the success it has already achieved in the European market.”
At the same time, Reni is also keen on emphasizing his company's HNB product IQOS Iluma device. In response, Philip Morris International (PMI) has launched the digital trading engagement platform HEATWAVE OPEN, aiming to provide online support for convenient retailers selling the heated tobacco device IQOS.
Silviu Miron, the commercial planning director for Philip Morris International (PMI) in the UK and Ireland, mentioned that...
We acknowledge that in the crucial time in the UK market, digital platforms such as HEATWAVE OPEN play a vital role in supporting retailers. HEATWAVE OPEN provides retailers with the necessary tools, resources, and products to not only adapt to this transition, but also thrive in the emerging smoke-free era.
British American Tobacco: Ban "Ineffective," Supports New Tax Policy British American Tobacco has expressed its belief that the current ban on tobacco products is ineffective and is instead in favor of implementing a new tax policy.
During the initial announcement of the ban, British American Tobacco (BAT) CEO Tadeu Marroco stated that he believes the prohibition of disposable e-cigarettes will not be "effective," and that raising the smoking age limit will have "unintended consequences." Marroco mentioned:
In other countries, this policy has not been very effective. Australia has completely prohibited it, but the purchase volume among teenagers in the illegal market is very high. The same situation has occurred in Brazil as well.
At the same time, Maroko also emphasized that the company's products are "primarily targeted towards adults" and that "we are very cautious about this," in response to the growing issue of e-cigarette use among teenagers in the UK.
Standing from the perspective of British American Tobacco, although Maroko believes that the ban on disposable e-cigarettes is ineffective, he supports the new e-cigarette tax policy implemented in the UK in March of this year. Due to the fact that illegal products make up nearly one-third of the market in the UK, he believes that the new tax policy will help combat illegal products and aid British American Tobacco in gaining market share.
In response to changes in e-cigarette policies in the UK, British American Tobacco continues to expand its presence in the market for new tobacco products. The company has reportedly invested £30 million in establishing an innovation center at its global research and development headquarters, which is dedicated to researching modern oral nicotine pouches, vape liquids and flavors, heated products, and new products beyond nicotine.
In addition, British American Tobacco is taking action at the retail end, planning to introduce vending machines in bars and pubs by the end of June to sell e-cigarettes and nicotine pouches in order to increase product sales.
Japan Tobacco: Heated tobacco devices driving market expansion.
Japan Tobacco (JT) is finding growth in the British market through heated tobacco, especially with the "Ploom X Advanced" device. According to the company's financial report for the first half of 2024, "Ploom" has expanded to 21 markets globally, with the UK being a key market. Local suppliers have reported that since the launch of "Ploom" in the UK last September, sales have nearly doubled, with an annual growth rate of 8.9% in the heated tobacco category.
As a result, Japan Tobacco has announced in June that it will expand the sale of its heated tobacco devices "Ploom X Advanced" and "Evo" to retail outlets in Glasgow and Sheffield. This marks the first time they will be sold outside of London in order to support their expansion into the UK market.
The company's UK marketing director, Mark McGuinness, stated that...
Ploom has achieved significant growth in the past 12 months, and we have ambitious plans to expand this momentum beyond London to independent convenience channels by 2024. It is estimated that by 2027, as more consumers look for heated tobacco devices that provide a similar yet different experience from traditional smoking, the market value of heated tobacco category will reach £4 billion.
In addition, similar to Philip Morris International (PMI), Japan Tobacco International (JTI) has launched a new online retail platform called "JTI 360," providing retailers with a one-click query feature for news updates and price lists.
Imperial Tobacco: implementing recycling program, launching pod system
As early as December of last year, Imperial Tobacco expressed its views on the potential ban, stating that disposable devices should not be completely prohibited. The company believes that existing laws should be more strictly enforced and harsher penalties should be imposed for violations of age restriction laws.
One week before the ban was announced, Imperial Tobacco had just launched a new disposable e-cigarette product called Blu Bar 1000. Yawer Rasool, the company's Consumer Marketing Manager for the UK and Ireland, said at the time that there had been a high demand for disposable e-cigarette devices in recent years and the new device was aimed at meeting retail demand.
In response to the official announcement of the ban on disposable e-cigarettes, Imperial Tobacco quickly took action. The company publicly stated its support for more stringent e-cigarette regulations.
The company's Head of Corporate Legal Affairs in the UK and Ireland, Lindsay Mennell Keating, stated, "We have been calling for stricter e-cigarette regulations for many years. We are pleased that they have finally recognized the need to catch up with market developments by implementing relevant regulations.
According to reports, Empire Tobacco has implemented a new recycling program for all e-cigarette products, encouraging retailers and consumers to responsibly dispose of disposable products.
At the same time, the pod system is an important product that the company is promoting in the UK. In late July, the Imperial brand released a new Blu Bare-cigarette device, with each pod providing 1000 puffs and selling for £5.99. A spokesperson for the company stated that...
We believe that the Blu Bare-cigarette kit will bring lucrative sales opportunities for wholesalers and retailers, while also providing them with another revenue stream before the proposed disposable e-cigarette ban is implemented.
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