Achieving true IMPACT against criminals and leading the battle to eradicate illegal trade.
Fighting illicit trade: Essential for delivering a smoke-free future
PMI IMPACT
4 min readWhy is confronting illicit trade key to delivering a smoke-free future?
The world has an unprecedented opportunity to eradicate smoking. Science and technology have enabled the development of better alternatives for adults who would otherwise continue to smoke, moving a smoke-free future to within our grasp.
To deliver a smoke-free future, we must ensure that there are no illegal actors sustaining a black market for cigarettes and other tobacco products. Cigarettes, for instance, remain one of the most common illegally traded goods in the world, with as much as 12 percent of total cigarette sales (excl. China) sourced from the black market.
Smoke-free products can be a much better choice for adult smokers than continuing to smoke, so it is also paramount to protect consumers from fakes and prevent the smuggling and counterfeiting of our products.
Securing our supply chain
For PMI, eliminating the illicit tobacco trade has been a long-standing priority. We focus our efforts on securing our supply chain and protecting our products. And we do it by leveraging technology and innovation for the better: From multiple applications of authentication and security technologies to track and trace our products across the supply chain, to the use of machine learning to identify and prevent illegal online sales, technology is helping us detect and address illicit trade.
But if we truly want to have an impact on deterring illicit tobacco flows, and protect consumers and our brands from smugglers and counterfeiters, our internal efforts need to be coupled with strong cross-sectoral collaboration and partnerships.
A holistic approach for a successful collaboration
No one can fight illicit trade on their own. Public-private partnerships based on an inclusive, commonsense approach by governments, the private sector, and civil society are vital to helping combat the practice.
This is why we set up PMI IMPACT, a major initiative to fund projects around the world to address and tackle illicit trade. PMI IMPACT fosters cross-sector and public-private collaboration, as it supports a wide range of organizations that fight illegal trade through research, awareness-raising, developing technical solutions, funding equipment, and training and communication initiatives.
In today’s hyper-connected world—with growing concerns around global security, the proliferation of criminal organizations, and the surge of new digital tools—we believe that it’s more important than ever to sustain our collective efforts and promote an inclusive dialogue around solutions to tackle this global issue.
To deliver a smoke-free future, it is imperative to eradicate illicit trade wherever it exists.
The STOP ILLEGAL blog sheds light on all aspects of the illicit trade problem, and provides insights from experts around the world.
STOP ILLEGAL
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It’s time to consider novel policies and raise awareness to tackle illicit trade
The 2022 KPMG report on illicit cigarette consumption in the European Union demonstrates the challenges we all face in tackling the black market. The annual study has revealed that 35.8 billion cigarettes originate from illicit trade, amounting to an estimated €11.3 billion in missed tax revenues—a significant financial drain on hard-pressed economies.
It’s time to consider novel policies and raise awareness to tackle illicit trade -
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The steps to take to crack down on illicit cigarettes
A report from KPMG focusing on Europe's illicit cigarette consumption shows that counterfeit cigarette production and distribution, fueled by organized crime, is increasing within the European Union’s borders, with criminals targeting higher-taxed and higher-priced EU member states.
The steps to take to crack down on illicit cigarettes -
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The data speaks for itself: Concerning growth of the illicit market in the European Union
A new study from KPMG, spanning the European Union, U.K., Norway, Switzerland, Moldova, and Ukraine, reveals the illicit cigarette market in Europe continued to grow in 2022.
The data speaks for itself: Concerning growth of the illicit market in the European Union -
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KPMG report uncovers Europe’s illicit cigarette market, driven by France
A recent study conducted by KPMG has shed light on the concerning growth of the illicit cigarette market in the EU, U.K., Norway, Switzerland, Moldova, and Ukraine.
KPMG report uncovers Europe’s illicit cigarette market, driven by France -
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Ensuring the integrity of our supply chain is paramount to PMI achieving its smoke-free vision
At Philip Morris International (PMI), we are disrupting our business to achieve a bold vision—replacing cigarettes with science-based smoke-free products as soon as possible.
Ensuring the integrity of our supply chain is paramount to PMI achieving its smoke-free vision -
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What is PMI doing to address counterfeiting and ensure supply chain integrity?
At PMI, protecting our products from counterfeiting and ensuring the integrity of our supply chain is paramount. Not only does it safeguard our consumers’ journey, but it also supports our vision of a smoke-free future.
What is PMI doing to address counterfeiting and ensure supply chain integrity? -
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Adult smokers deserve access to smoke-free products—even during tough times
Widespread economic and geopolitical instability is causing rising inflation and a squeeze on people’s living standards.
Adult smokers deserve access to smoke-free products—even during tough times -
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Policies should be made in the best interests of the millions of adult smokers who don’t quit
The role governments play in making sure adult smokers have access to better alternatives is crucial. Especially during this period of global economic instability, making smoke-free alternatives more available and affordable to millions of adult smokers who don’t quit is a matter of urgency.
Policies should be made in the best interests of the millions of adult smokers who don’t quit -
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Equitable access to innovation is key to delivering a smoke-free future
Leveraging the latest innovations and technological breakthroughs is central to safeguarding and delivering a smoke-free future.
Equitable access to innovation is key to delivering a smoke-free future -
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Knowledge is power: Why adult smokers should have access to information about better alternatives
Illicit trade makes cheap, unlawful tobacco products easily accessible—undermining efforts to reduce smoking prevalence and protect youth from smoking.
Knowledge is power: Why adult smokers should have access to information about better alternatives -
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Stopping illicit trade requires access to innovations to help drive more equitable outcomes
The world today is going through serious socio-economic challenges. The global economy is facing an increasingly uncertain outlook, and everyone is concerned about how this might impact their quality of life.
Stopping illicit trade requires access to innovations to help drive more equitable outcomes -
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How illicit trade threatens society
The worldwide problem of illicit trade is a serious one. The amount of money lost to illicit flows is staggering: More than USD 2 trillion annually, according to the United Nations (2020). So, it’s not surprising that when discussing illicit trade and its negative effects, we often focus on the economic costs.
How illicit trade threatens society -
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PMI’s focus on supply chain controls and product protection to help prevent illicit trade
At PMI, as we advance on our journey toward delivering a smoke-free future, we know we must increase our efforts to secure both our supply chain and the products we sell. It is an integral part of our work to drive operational excellence, and to protect consumers and our brands from smugglers and counterfeiters. Ensuring our customers are sold only genuine and legal goods is fundamental.
PMI’s focus on supply chain controls and product protection to help prevent illicit trade
Latest articles
The cost of ignoring the impact of failed policies
KPMG released the data from its annual report on illicit cigarette consumption in the EU, Moldova, Norway, Switzerland, the U.K., and Ukraine.
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2.2trillion
The value of illicit products flowing globally from cross-border criminal operations, such as the smuggling of arms, tobacco, or pharmaceuticals is USD 2.2 trillion.
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2.5percent
The volume of counterfeit and pirated goods stands at 2.5 percent of total international trade.
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460billion
Between 10 and 12 percent of tobacco products consumed globally every year are illicit, corresponding to an estimated 400–460 billion cigarettes.
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50billion
Up to USD 50 billion are lost globally every year in tax revenues due to the illicit tobacco trade.
