Inside a $280 billion tobacco giant’s push to turn smokers into smoke-free customers

Fortune

by Ruth Umoh

February 24, 2026

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Philip Morris International (PMI) is undergoing a significant transformation, aiming to shift its focus from traditional cigarettes to smoke-free alternatives. The company, known for its Marlboro brand, plans to generate more than two-thirds of its revenue from smoke-free products by 2030, signaling a move toward harm reduction and aligning business growth with public health goals. This strategy involves converting existing cigarette smokers into users of safer nicotine products, such as heated tobacco devices and oral pouches like Zyn. While PMI positions itself as a leader in innovation and harm reduction, the transition is complicated by its reliance on cigarette sales in international markets to fund investments in smoke-free platforms. The company’s U.S. chief commercial officer, Seth Kaufman, emphasizes that the strategy centers on consumer needs and behavior, drawing parallels to his experience in industries like soda, coffee, and wine, where repeat consumption and emotional brand attachment are key. PMI’s approach focuses on converting existing nicotine users rather than expanding the market, with the goal of helping smokers switch to less harmful alternatives without creating new dependencies. However, this strategy faces challenges, including the potential decline in the number of smokers willing to switch and the tension between maintaining cigarette sales for financial stability and positioning itself as a health-conscious innovator. PMI’s efforts have also been influenced by cultural trends, particularly the association of its nicotine pouches with high-stress work environments. While the company refrains from marketing these products as performance aids, consumers have embraced them as part of their daily routines. This has created both opportunities and risks, including regulatory scrutiny and questions about how PMI balances its public health narrative with its business interests. As PMI navigates this complex landscape, its ability to successfully transition while maintaining profitability will determine the long-term success of its smoke-free vision. For businesses and investors, PMI’s strategy highlights the potential for innovation in highly regulated industries and the importance of aligning corporate goals with societal values. The company’s approach offers insights into

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Originally published on Fortune on 2/24/2026