Papastratos’ 180° Shift: From legacy to leadership 

In the heart of Aspropyrgos’ industrial district, a bold evolution began eight years ago. Papastratos, PMI’s affiliate in Greece, has moved beyond its historic role as a cigarette manufacturer to become an innovation-driven hub supporting PMI’s smoke-free product portfolio. This shift was not simply about changing products, but about redefining purpose. By transitioning from cigarettes to smoke-free products, Papastratos operationalized PMI’s global strategy to address the most material negative externality of its business: The health impact associated with cigarette smoking. In doing so, the company strengthened its strategic role within PMI, while supporting a broader societal move toward less-harmful alternatives. 

By 2023, Papastratos had become the leadership center for PMI’s Southeastern Europe operations, overseeing a cluster of 12 countries. This milestone reflects Papastratos’ growing role within PMI as the business continues to scale its smoke-free portfolio across the region.  

With total investments now exceeding EUR 700 million over eight consecutive years (since 2017), Papastratos remains a key economic force—while supporting the transformation and long-terms resilience of PMI’s business and its capacity to create value for its stakeholders over time. 

Driving profitable growth while safeguarding youth access 

Papastratos’ Aspropyrgos facility—one of only three in Europe dedicated exclusively to the manufacturing of heated tobacco units—operates 24/7, exporting to more than 40 countries. As of November 2025, Smoke-free products now account for over 80 percent of Papastratos’ annual net revenue, reflecting PMI’s evolving business model and the growing global demand for alternatives to continued smoking. 

The results speak volumes: Export revenues reached EUR 430 million in 2024, the company contributes approximately EUR 1 billion annually in taxes, and it employs approximately 1,400 people. In addition, Papastratos maintains commercial relationships with approximately 2,000 suppliers and 20,000 partners nationwide. 

Beyond its significant economic contributions, Papastratos recognizes the importance of responsible marketing and sales practices to ensure its products reach the right audience of adult nicotine users and to guard against unintended access. To achieve this, Papastratos has established robust Youth Access Prevention (YAP) measures across its retail environment, in both its brand retail network channels (47 points of sale) as well as its indirect channels (20,000 IQOS partners, device sellers, and consumable sellers).  

Key measures include annual training for frontline staff, quarterly mystery shopper exercises in brand retail, and the consistent application of Good Conversion Practices and YAP-related Point-of-Sale Materials (POSM).  

These safeguards were developed through building strong stakeholder relationships, launching a nationwide campaign in partnership with relevant ministries, and working closely with the government to advance age-verification solutions.  

Building business resilience through environmental performance  

As Papastratos transitioned from cigarette production to smoke-free product manufacturing, the company recognized the environmental implications that come with this transformation and the related changes in processes, materials, and energy use. Papastratos is addressing the new challenges posed by smoke-free product manufacturing through targeted investments and forward-looking initiatives—to minimize its environmental footprint and improve operational efficiency.  

The company has set ambitious goals to reduce its greenhouse gas emissions and transition toward low-carbon operations, aligning with PMI’s climate transition targets.  

To this end, photovoltaic panels have been installed across the factory’s rooftops covering 10,600 m². In addition, a landmark investment of approximately USD 10 million currently underway—the company’s largest initiative—will further modernize the Aspropyrgos factory under PMI’s Zero Carbon Tech program, supporting the company’s evolving smoke-free business. (read more here)  

As part of this investment, Papastratos plans to install advanced heat pumps designed to capture and transfer heat from the environment, reducing reliance on natural gas. The plan also includes replacing conventional natural gas boilers with electric boilers. Together, these technologies are expected to reduce the factory’s carbon emissions by approximately 20–25 percent annually compared to its 2023 baseline.

These efforts go beyond compliance, helping to build a future-ready business grounded in innovation. Already today, the factory uses 100 percent renewable electricity (through REGO certificates), recycles 80 percent of air-conditioning output, and sends zero waste to landfill.

Water stewardship further reflects Papastratos’ dedication to long-term impact and resilience. Among Greece’s first AWS-certified companies, Papastratos implemented upgrades between 2020 and 2024, achieving a 33 percent reduction in water consumption rate (m³ per million sticks), exceeding its 2025 target. The Aspropyrgos site operates two dedicated wastewater treatment plants—serving municipal and industrial streams—with treated water used to irrigate on-site green spaces and help recharge the local aquifer.  

Image: Solar panels on the roof of the Papastratos factory in Greece

Empowering its workforce and fostering new talent

The company also places strong emphasis on upskilling its workforce to meet the demands of new processes and technologies, fostering a strong organizational culture, as well as attracting new talent. In 2018, it became Greece’s first Equal Salary-certified company and has been recognized as a “Top Employer” for 11 consecutive years. 

In addition, the company is deeply committed to empowering Greece’s young adults, forging strong partnerships with universities and offering internships that open doors to real-world experience. At the heart of this effort is FutuReady, Papastratos’ signature empowerment initiative, a one-day event designed to help young adults aged 18 to 30 develop critical skills such as communication, problem-solving, and digital literacy through hands-on workshops. 

FutuReady has been held every year since 2023. Beyond skill-building, the program connects participants with career opportunities and mentorship, preparing them for their professional journey. Last year’s theme, “The Power of Gen Z,” attracted more than 200 participants. 

This dedication to talent development extends across markets through Game Changers, a 24 month program for experienced executives seeking significant career growth through the undertaking of complex projects and responsibilities that nurtures senior talent in Greece, Bulgaria, and Romania. Complementing these efforts, the company actively supports the return of Greek professionals from abroad, offering internships and career programs that help them reintegrate and thrive.

Playing a role as asocial contributor;

Papastratos’ people-first philosophy extends beyond employment, shaping how the company engages with society more broadly. 

As an example, Papastratos has worked closely with the state to address longstanding social issues such as illicit trade, which drains public revenue and undermines legitimate economic activity. Since 2012, the company has concluded a series of Cooperation Agreements with the prosecuting authorities and has actively supported their efforts through EUR 7 million in funding for equipment, operational needs, and information and public awareness initiatives. Most recently, at the 2024 Thessaloniki International Fair, Papastratos donated a EUR 155,000 digital platform to the Coordinating Center for the Fight Against Illicit Trade, which aims to improve cross-agency coordination to combat illegal tobacco, energy, and alcohol products.

Environmental protection is another key area of social contribution. Since 2020, Papastratos has invested EUR 1 million in wildfire prevention, including the purchase of 20 firefighting vehicles. Following the devastating wildfires of 2021, Papastratos launched Greece’s largest corporate reforestation initiative in collaboration with the Ministry of the Environment and the competent Reforestation Directorate. The program has planted 70,000 trees in Attica’s burned areas and will continue maintenance through 2026. 

“Here in the Mediterranean, we are extremely vulnerable, which is why it is important—alongside the protection of forests—to plant new ones. It is a necessary effort where the vegetation has burned twice, meaning the possibility of natural regeneration does not exist, but it is also necessary in places that are currently barren, and we need to create new forests,” said Theodoros Skylakakis, the then Greek Minister of the Environment.

Building the future, together

Papastratos’ transformation journey has been defined by close collaboration between business, government, civil society, and the communities it serves. Through investments in talent development, support for community initiatives, and a steadfast commitment to responsible business practices, it has cultivated resilience and advanced long-term value creation.

As it nears its centennial, Papastratos remains dedicated to ongoing innovation, collaboration, and adaptability, ensuring its legacy continues to enrich both its employees and the wider community for generations to come. Looking forward, Papastratos will continue to invest in future-ready manufacturing capabilities and to embed environmental and operational considerations into its decision-making as PMI’s business continues to evolve.