Why fake cigarettes are a lose-lose for all

The tobacco industry is undergoing a transformation as companies race to create 'reduced-risk' products in an effort to combat the harmful effects of traditional cigarettes. South Africa has emerged as a pioneer market in this evolution, with global tobacco brands viewing the country as a crucial battleground for their new products. Marcelo Nico, CEO of Philip Morris, joined CNBC Africa to shed light on the future of the industry and the shift towards alternative smoking options. Nico emphasized the company's commitment to creating a smoke-free world by encouraging smokers to transition to less harmful products. Philip Morris has invested $3 billion in scientific research and development, with a team of 400 experts working on innovative solutions. One such product is Icos, a smokeless device that heats real tobacco instead of burning it, offering smokers the familiar taste without the associated risks. Nico revealed that the company's goal is to have over 40 million smokers switch to alternative products by 2025, with nearly 4 million already making the transition. The focus on smokeless products reflects a global trend towards healthier alternatives, with traditional cigarettes expected to see a decline in the coming years. Despite regulatory restrictions on cigarette advertising in South Africa, Philip Morris remains committed to engaging directly with smokers to provide accurate information about their new offerings. While the reduced-risk products are not risk-free, they offer a significant reduction in harmful chemicals, making them a more attractive option for health-conscious consumers. The company's efforts to combat illicit trade and promote smoking cessation underscore their commitment to improving public health and reducing the impact of tobacco-related harm. Challenges such as industry credibility and contraband cigarettes continue to pose obstacles, but Philip Morris is focused on driving positive change and helping smokers make informed choices. In the face of economic challenges and increased tax burdens, the company remains dedicated to their mission of creating a smoke-free South Africa. The recent acquisition of Reem Elts by British American Tobacco may create a more competitive landscape, but Philip Morris believes that their strong scientific foundation and existing product portfolio will position them well in the evolving market.