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Philip Morris International is set to introduce its top-selling heated tobacco device, IQOS, in Austin, Texas, signaling its entry into the US market. The company aims to focus on healthier options amidst declining cigarette sales (via Reuters).

According to job adverts on LinkedIn, Philip Morris is laying the groundwork for the launch of IQOS in Austin, Texas. These postings include positions such as field sales representatives and retail sales advisors, indicating the company's preparation for its US debut.

Philip Morris to Launch Heated Tobacco Device in Texas

IQOS, which heats ground-up tobacco without burning it, aims to provide a smoke-free alternative for consumers. With smoking alternatives gaining popularity, Philip Morris sees an opportunity to capture a significant share of the US tobacco market.

The decision to launch in Austin, Texas, comes after Philip Morris acquired the rights to market IQOS in the United States from its former parent company, Altria, for $2.7 billion. Texas offers a diverse market landscape, ranging from rural to urban areas, making it an ideal testing ground for IQOS.

Moreover, Texas boasts relatively low tobacco taxes compared to other states, providing a favorable environment for product testing and market penetration. The state's recent regulations on e-cigarettes also indicate a growing interest in alternative nicotine products.

According to estimates, US nicotine sales, excluding nicotine replacement therapies, were valued at approximately $143.6 billion in 2022. With forecasts suggesting a decline in cigarette sales and a rise in alternative products, Philip Morris aims to capitalize on this shifting market trend.

The Latest from the Company

In the company's recent Integrated Report, it highlighted its progress towards sustainability goals, including investments in smoke-free products and environmental conservation initiatives.

The firm boasted about its 33 million estimated consumers of Philip Morris smoke-free goods, including 28.6 million IQOS users, and having 40 percent of managerial roles held by women and 18 factories and 11 markets certified as carbon neutral.

Philip Morris International's selection of Austin, Texas, as the testing ground for IQOS reflects its strategic approach to entering the US market and diversifying its product portfolio.