Our transformation is not just about changing our product: it’s about completely adapting our value chain.
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R&D
We continue to shift resources toward achieving our transformation: 92 percent of our investment in R&D and 60 percent of our global commercial expenditure were dedicated to smoke-free products in 2018.
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Sourcing
As we decrease our tobacco leaf requirements, there is a need to support farmers’ profitability and livelihoods through diversified crops, such as soybean or groundnuts.
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Manufacturing
Changing means converting the way we work, from the factory machinery we use to the processes we follow. Seven of our factories, up from three in 2017, now produce smoke-free products.
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Commercialization
Customer-centric approaches—specialists who engage with adult smokers, flagship stores, help centers, and digital platforms—are needed to make smoke-free products known and available to adult smokers.
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Post-consumer waste
We plan to play our part in the circular economy and that means designing products and using materials that can be recycled and/or reused—including the electronics we started selling in 2014.
