Transformation across our value chain

31 Aug 2019 · 3 min read
Our transformation is reshaping our value chain

Our transformation is not just about changing our product: it’s about completely adapting our value chain.

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    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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    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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    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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    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.