Travel Retail's Next Competitive Advantage: Why Experiential Retail Is Accelerating Smoke-Free Adoption

Travel Retail Is No Longer Just About Selling Products

For decades, success in travel retail was largely driven by passenger traffic, retail footprint, and product visibility. While those factors remain important, recent developments across the Global Travel Retail (GTR) industry suggest a more fundamental shift is underway.

The industry's fastest-growing opportunities are increasingly being created through consumer engagement, education, and experience.

Recent reporting from GTR Magazine, DFNI, TRBusiness, and The Moodie Davitt Report highlights two interconnected trends:

• Continued momentum of PMI's smoke-free portfolio, particularly IQOS within travel retail environments.
• Growing investment by airports and retailers in experiential retail formats, immersive activations, and consumer-centric engagement models.

Viewed independently, these are noteworthy developments.

Viewed together, they reveal something much more important: experiential retail may be becoming one of the strongest catalysts for smoke-free adoption globally.

Why Smoke-Free Products Benefit From Experience-Led Retail

Unlike many traditional consumer goods categories, smoke-free products often require understanding before adoption.

Adult consumers may seek information about product features, usage, alternatives, and the overall experience before making a decision. This means education and engagement can play a particularly important role in the consumer journey.

This is precisely where travel retail is evolving.

Across airports worldwide, retailers are increasingly moving beyond traditional transactional environments. Beauty brands offer personalized consultations. Luxury brands create immersive experiences. Spirits companies invest heavily in storytelling and sampling-led engagement.

The common theme is simple: Consumers are spending less time looking at shelves and more time interacting with brands.

For smoke-free products, this evolution creates a natural advantage.

An airport is often one of the few places where brands can engage adult consumers in a premium environment, supported by trained staff, experiential displays, and sufficient time for meaningful interaction.

As travel retail becomes more experience-driven, the value of consumer education grows alongside it.

The IQOS Opportunity Beyond Traditional Visibility

Recent industry reports highlighting travel-retail-exclusive IQOS launches demonstrate how the category continues to leverage airports as innovation showcases.

Historically, exclusive products were primarily associated with luxury, beauty, and spirits categories. Today, they are increasingly relevant for smoke-free products as well.

However, the real opportunity extends beyond limited editions or exclusive devices.

The bigger question is: How can every consumer interaction become a learning opportunity?

As airports continue investing in experiential formats, brands capable of combining innovation with education are likely to gain an increasingly important competitive advantage.

This is particularly relevant as smoke-free products continue their global expansion journey.

In many cases, conversion may depend less on visibility and more on understanding.

Why This Matters For The Future Of Global Travel Retail

The broader travel retail sector is effectively redesigning itself around experience.

That evolution may prove especially significant for categories that require higher levels of consumer engagement and education.

The industry's investment in immersive retail experiences, combined with PMI's continued smoke-free momentum, signals an interesting convergence:

• Retailers need meaningful consumer engagement.
• Adult consumers increasingly seek informed choices.
• Smoke-free products benefit from education-led interactions.

When these three elements come together, travel retail becomes more than a sales channel.

It becomes an environment capable of accelerating product adoption, strengthening brand perception, and creating long-term consumer relationships.

Closing Thought

The most valuable asset in airport retail may no longer be shelf space.

It may be attention.

As experiential retail continues to reshape airports worldwide, brands that successfully transform consumer attention into education and understanding will likely be best positioned for future growth.

For PMI and the broader smoke-free category, that makes travel retail far more than a distribution channel.

It makes it one of the most influential consumer engagement platforms in the world.

 

Sources

• GTR Magazine – Airport retail trends, retail expansion and experiential activations
• DFNI – PMI smoke-free portfolio performance and IQOS travel retail developments
• TRBusiness – Global travel retail consumer trends and market analysis
• The Moodie Davitt Report – PMI smoke-free growth and travel retail performance

By Volkan Yorulmaz

Views are my own and do not necessarily reflect the views of Philip Morris International (PMI) or its affiliates. 

Fostering a Culture of Engagement and Collaboration in Global Controlling with GC Engagers

As we approach the end of 2024, it's a perfect time to reflect on our achievements and the values that have guided us. This year, our Global Controlling (GC) leadership team under Global Business Solutions announced an exciting initiative during our first webcast in 2024: the formation of the GC Engagers community. This initiative aimed to co-create engagement ideas and foster a culture where everyone feels a sense of belonging and pride in being part of our team.

Creating a Positive Impact

Our leadership team demonstrated the PMI DNA value of "We Care" by providing a platform for every member of the GC team to contribute. This initiative showed our commitment to creating a positive impact for those around us. By intentionally seeking, listening, and learning from diverse perspectives, we aimed to reach the best outcomes. This inclusive approach sparked interest among the team, leading to the formation of a community of 36 individuals from 12 different countries, each bringing unique "superpowers" to the table.

Building Connections and Collaboration

We began with a get-to-know-each-other session, aligning on our roles and responsibilities. A dedicated SharePoint site was created as a central hub for resources, discussions, and collaboration. This space allowed us to introduce ourselves to the entire GC community and foster a sense of unity.

Our Head of Global Controlling, Luis Matos, reinforced the PMI DNA value of "We are Better Together" by encouraging the GC team to reach out to Engagers with ideas to strengthen our team. His cooperative approach broke down silos and united us for a shared purpose.

Driving Engagement and Innovation

In our first team meeting, we identified improvement areas: Fun & Integration, Recognition, Wellbeing, Learning Opportunities, and Career Opportunities. These areas evolved into five focused teams, each with its own leader. Francesco Puppato became the team leader for Fun & Integration, Sabina Bytnar-Warzocha for Recognition, Leonor Almeida for Wellbeing, Jaafar Abu-Eisheh for Learning Opportunities, and Volkan Yorulmaz (me) for Career Opportunities. By working in these focused teams, we analyzed pain points and implemented quick wins to create a positive impact on GC employees.

While the GC Engagers team has been working on ideas and plans to foster a culture of belonging, employee appreciation, and a growth mindset—ultimately making GC teams feel more connected, engaged, and motivated—our GBS People & Culture Manager, Izabella Golba, has consistently shown full "trust" in us, supporting us as we "embraced challenges."

Key Achievements

• Enhanced Communication: We created dedicated MS Teams channels to improve global communication and collaboration.
• On-Site Meetings: Successfully conducted on-site meetings in Krakow and Latin America, with plans for more in 2025.
• Summer Memories Competition: Launched a fun and engaging competition to boost team morale.
• Coffee Calls: Implemented informal catch-ups to strengthen team bonds.
• Webcast Support: Provided comprehensive support for GC webcasts, achieving high satisfaction results.
• Recognition: Recognized outstanding contributions through the Colleague of the Quarter awards.
• Career Opportunities: Introduced the “My Job Opportunities” initiative to highlight internal career opportunities.

Embracing Change and Innovation

Throughout this journey, we embodied the PMI DNA value of "We are Game Changers". By taking thoughtful risks, experimenting, and learning from our mistakes, we fostered a culture of agility and resilience. For instance, while preparing for the Global Controlling FS Connect series, we practiced repeatedly before the live sessions. During these internal runs, our GC leadership team members, Christine Lee (Head of Controlling EAA & PMIDF) and Aurimas Klimas (Head of Controlling SSEA, CIS & MEA), not only observed our presentations but also provided constructive feedback. Their support and guidance helped us achieve an impressive NPS score of 9.2 for the session, which is considered a ‘promoter’ score.

Additionally, we launched the "My Job Opportunities" initiative to highlight internal career opportunities. This initiative encouraged team members to take initiative and explore new roles within the company, fostering individual growth and strengthening our team by leveraging diverse skills and experiences.

Reflecting on Our Journey

In our last GC Year-end webcast, thanks to the inclusive invite from Felix Schell, Head of Controlling Americas, the GC Leadership team provided us, the GC Engagers, with the space to share our key takeaways from 2024. We emphasized the importance of communication, feedback, and active participation in our initiatives. By working together, we can create a thriving and collaborative environment, driving for impact and celebrating our successes.

As Edvinas Katilius, our Global Business Solutions Vice President, shared in his reflections on PMI DNA, "Introducing core values by companies is not what makes them thrive; making those values lived by their people is." This sentiment was echoed during the global and local PMI DNA events, where we gathered to delve into the essence of our guiding principles. All these events were filled with open and honest conversations, leaving us energized and inspired to embed these values within GBS. Edvinas' commitment to making PMI DNA a part of our thriving culture is a powerful reminder of the impact we can achieve together.

A Personal Thank You

During my transition to a new role in 2024, my manager, Vasyliy Zakharov (Controller PMIDF), gave me the space to work as a GC Engagers leader, exemplifying the PMI DNA value of "We are Better Together". His support allowed me to collaborate effectively with our team, break down silos, and unite for a shared purpose.

Vasyliy's embodiment of the PMI DNA value "We Care" has been instrumental in my personal journey this year. His trust and encouragement have empowered me to embrace challenges, strive for excellence, and make things better for everyone in Global Controlling.

Call to Action

As we move forward, we as GC Engagers encourage all GC colleagues to:

• Communicate with Us: Reach out with any questions, suggestions, or concerns. We're here to listen and support you.
• Share Ideas & Feedback: Your insights help us improve and innovate. Don't hesitate to share your thoughts.
• Join Us: Become an active part of our initiatives. Together, we can achieve great things and make a positive impact on our Global Controlling team.

Let's continue to embody the PMI DNA values and critical behaviors, driving for impact and celebrating our collective achievements. 

The Top of the Net Zero Leaders List: Philip Morris International

In the corporate world, sustainability has become a crucial aspect of business strategy, and Philip Morris International (PMI) has emerged as a leader in this arena. Recently topping Forbes’ Net Zero Leaders list, PMI’s journey to sustainability is a testament to its commitment to environmental responsibility and strategic foresight.

Sustainability as Strategic Imperative

PMI’s rise to the top of the Net Zero Leaders list is not just a reflection of its environmental efforts but also its understanding of sustainability as a strategic imperative. The company’s Chief Sustainability Officer, Jennifer Motles, emphasizes that sustainability is integral to PMI’s risk mitigation, resource optimization, and value creation. It’s clear that for PMI, sustainability is not an optional extra but a core component of its competitive advantage.

Transitioning to Smoke-Free Products

A significant part of PMI’s success story is its transition to smoke-free products, which include heated tobacco, chewing tobacco, oral nicotine items, and vapes. This shift not only represents a move towards healthier alternatives for consumers but also aligns with PMI’s goal to have more than two-thirds of its revenue from these alternative products by 2030. This strategic pivot is a clear indicator of PMI’s dedication to innovation and adaptability in a changing market landscape.

Achieving Carbon Neutrality

PMI is on track to achieve carbon neutrality for its Scope 1 and 2 emissions by the upcoming year. This ambitious goal demonstrates the company’s proactive approach to reducing its direct environmental impact. For Scope 3 emissions, which encompass the entire value chain, PMI aims to reach net zero by 2040, showcasing a comprehensive commitment to sustainability that extends beyond its immediate operations.

Beyond Emissions: Forest Positive Initiatives

PMI’s sustainability efforts go beyond merely reducing emissions; the company is actively working towards becoming “forest positive.” This involves eliminating deforestation from its paper supply chain and investing in reforestation projects. These initiatives not only contribute to carbon credits but also preserve natural ecosystems and biodiversity, highlighting PMI’s holistic approach to environmental stewardship.

The Business Case for Sustainability

PMI’s sustainability achievements underscore the business case for environmental responsibility. As consumer awareness and regulatory pressures increase, companies that prioritize sustainability are likely to see enhanced brand perception and long-term business benefits. PMI’s leadership in this area sets a benchmark for other corporations to follow, proving that sustainability and business success can go hand in hand.

Conclusion: Leading by Example

Philip Morris International’s move to the top of the Net Zero Leaders list is a clear indication of its leadership in sustainability. The company’s comprehensive approach to environmental responsibility serves as an exemplar for others to follow. As the business landscape evolves, PMI’s success story offers valuable insights into the integration of sustainability into core business strategies, ensuring resilience and competitiveness in an ever-changing world.

For more about Net Zero Leaders: Meet 2024's Net Zero Leaders (forbes.com)

 

A Long-Awaited Journey to PMI's Headquarters: Impressions from Lausanne

For someone like me, who is not that much curious about exploring new places and cultures, Lausanne held a special allure. It was a destination I had longed to visit, especially after hearing countless stories from colleagues who had been there. Finally, an opportunity arose in December 2023 when I was invited to attend a X-Functional Sustainability Team Workshop in Lausanne, where my company Philip Morris International's headquarter is located. The anticipation and excitement were palpable as I embarked on this journey.

 

Arrival and Exploration

Upon arriving in Lausanne, I was greeted by a pleasant surprise – the weather was milder than expected, and the city was bathed in the early morning light. Opting for a leisurely walk to my hotel, I marveled at the tranquility of the surroundings. Lausanne's charm revealed itself as I strolled past picturesque houses and gardens, with the only sound being the gentle hum of my suitcase wheels. Despite a minor hiccup with my train ticket, the journey was smooth, and I soon found myself at my hotel, ready to begin my adventure.

 

Work and Pleasure

The following days were a blend of work and leisure, as I delved into the workshop activities while also exploring the city's offerings. From experiencing the vibrant local cuisine to navigating through the bustling streets, every moment was filled with discovery. The warmth and hospitality of the colleagues made me feel right at home, easing any initial apprehensions I may have had.

 

Reflecting on the Experience

As my time in Lausanne drew to a close, I couldn't help but reflect on the profound impact of this journey. Professionally, the insights gained from interacting with stakeholders from the company were invaluable, setting the stage for future collaborations and initiatives. On a personal level, the experience left an indelible mark, igniting a desire to return with my family and immerse ourselves in the beauty of this enchanting city.

 

Conclusion

In conclusion, my journey to Lausanne was not just about reaching a destination; it was about embracing new experiences, forging meaningful connections, and cherishing moments of joy and discovery. As I boarded the plane back home, I carried with me memories that would last a lifetime, fueling my passion for exploration and adventure. And who knows, perhaps one day, my family and I will embark on this journey together, ready to create new memories and write new chapters in our lives. After all, I am thankful to my company and colleagues who contributed to reach my long-awaited journey.

For a more personal content in Turkish, you may visit: Volkan Yorulmaz: Hedefe Ulaşıldı: Lozan'dan İzlenimler

Hedefe Ulaşıldı: Lozan'dan İzlenimler

Gezip görmeye, yeni yerler keşfetmeye çok meraklı biri hiç bir zaman ol(a)madım. Hatta bir yerleri sahiplenip oranın yerlisi olmak bana hep daha güzel geldi. Buna rağmen bir yer vardı ki görmeyi, belki de o ortamda bulunmayı çok istiyordum: Lozan! On yıl önce işe başladığım Philip Morris’in merkezi İsviçre Lozan’da olduğu için oraya giden arkadaşlarımdan hakkında pek çok şey duyduğum Lozan’ı görmeyi hep istemiştim. (PMI’da 10 yıl nasıl geçti merak ediyorsanız: https://volkanyorulmaz.blogspot.com/2023/08/pmida-10-yl-bitti-ya-simdi.html) Ne yaptığım iş ne de bulunduğum pozisyon oraya gidecek fırsatı 2023 yılı Aralık ayına kadar bana getirmemişti. Ancak 2023 yılını bitirmemize günler kala aldığım bir maille Sürdürülebilirlik konusunda bir workshop’a katılmak için davet edildiğimi öğrendiğimde çocuklar gibi mutlu olmuş hatta toplantıya fiziksel olarak katılacağımızı daveti atan yöneticimizle teyit etme ihtiyacı duymuştum. (Neden sürdürülebilirlik konusunda bir workshop’a Türkiye’den kalkıp gelecek biri seçildi diye merak ederseniz: https://volkanyorulmaz.blogspot.com/2023/05/surdurulebilirlige-adanms-4-hafta-pmi.html)

Evet, gerçektende 2024 yılının Ocak sonunda Lozan’a gidecektim! Vakit kaybetmeden Schengen vizesi ve red carpet başvuru süreçlerini başlattım. Ocak’ın ilk haftası bu işlemler tamamdı. Ardından bilet ve otel rezervasyonu, sömestre tatili için İzmir, dönüşte Bursa ve İstanbul’da bavulu toparlama derken 29 Ocak sabahı 6’da Lozan’a gitmek üzere İstanbul Havalimanı’na ulaştım. Bu tarz yurtdışı ziyaretlerde mümkün olan en erken uçağı seçmeyi tercih ediyorum. Belki biraz yorucu oluyor ama toplu programlar başlamadan önce şehri kendim keşfedebileceğim özel zamanım oluyor. (Benzer yöntemi yakın zamanda gittiğim Belgrad seyahatinde de uygulamıştım. Belgrad hatıralarım için: https://volkanyorulmaz.blogspot.com/2023/11/belgrada-gittim-ama-ne-gidis.html)

Oradaydım!

Yaklaşık üç saatlik uçuşum sonrası aradaki saat farkı sebebiyle bindiğim saatten yerel saat ile bir saat sonra Cenevre’deydim. Tren ile Lozan’a geçeceğimi biliyordum, hatta gitmeden arkadaşlarımdan tren için ne tarafa yürümem, nereden bilet almam gerektiği gibi ipuçlarını öğrenmiştim. Memleket düzenli olunca her şey de planlandığı gibi aktı, biletimi aldım, gelen ilk trene bindim. Evlere, bahçelerine, göl manzarasına bakarken elli dakikalık yolculuk adeta aktı. Bu arada tren bileti alırken arkamda bekleyen bir başka yolcu olduğu için seçimleri dikkatli okumadan yapıp bileti almıştım, yolculuğun ortasında bilet kontrolü esnasında oturduğum bölümün birinci sınıf biletimin ise ikinci sınıf olduğunu söyleyen görevliden hemen özür dileyip yerime geçtim.

Lozan garına geldiğimde havanın beklediğim kadar soğuk olmadığını ve hala sabahın erken saatlerinde olduğumuzu gördüğüm için kalacağım Mövenpick otele yürüyerek gitmeye karar verdim. Google Haritalar bana 18 dakikalık bir yürüyüş mesafesi veriyordu. Lozan bahsedildiği kadar sakindi, yolda tek gürültü bavulumun tekerleklerinden geliyordu. Hayran bir şekilde evlere, balkonlarına bakıp fotoğraflar çekip Migros’tan bana enerji verecek çikolatalarımı alıp otele geçtim. Erken gelmeme rağmen beni üzmediler, odamı hazırladılar, konaklamam süresince kullanabileceğim metro ve otobüs geçiş kartımı verdiler. İlk kez ülkeye ve şehre geldiğimi anlatıp gezmek ve alışveriş yapmak için nereye gidebileceğimi sordum, harita üzerinde işaretleyip otele yüz metre ötedeki metro istasyonu ile gidebileceğimi söylediler. Yabancılık çekilemeyecek kadar kolay gözüküyordu ve gerçekten de anlattıkları kadar kolay oldu. Eşyalarımı odaya bırakıp biraz dinlenip mailleri cevapladıktan sonra tavsiye edilen Lausanne Flon’a gittim. Gezdiğim mağazalardaki fiyatları sürekli 35 ile çarparak TL’nin CHF karşısındaki durumuna üzülüp fırsat alışverişinden ziyade sadece hatıra alışverişi yapılabileceğini, İsviçre’nin dedikleri kadar pahallı olduğunu anladım. Ama yine de güzeldi. Sadeliği sevenler, sakinlikte mutlu olanlar için uzun ve kaliteli hayatın kapısını açacak bir yerdi.

Pazartesi (mesai) günü, saat sabah 10 civarı

Otele dönüp ilk akşamki toplu yemeğe gitmek için hazırlandım. Rezervasyonu yapan arkadaşım, İsviçrelilerin rezervasyon saati konusunda çok hassas olduğunu, mutlaka belirtilen saatte mekanda olmamız gerektiğini anlattı. Ekipte daha önce Lozan’da yaşamış olan arkadaşlarımız olduğundan konaklamamız süresince iş yemeklerinin yendiği restoranlar yerine lokallerin tercih ettiği mekanları seçmişler. Bence de böylesi daha kültürü gözlemlemek açısından daha iyiydi. Zaten Google Translate ile kameraları açıp Fransızca menüleri Türkçe’ye çevirip takıldığımız yerde “bu nasıl bir yemek adı ya?” Diye sorabileceğimiz Türk dostlarımızın masada olması büyük bir konfor sağlıyordu. On bir gibi yemekten kalktığımızda rahatlıkla otobüsümüzü bir kaç dakika içinde bulup otelimize geçtik.Ertesi gün HQ ofisteki ilk günümüzdü. Hep websitesinde ve yıllık raporlarda gördüğüm Philip Morris International yazılı cam duvarın yanından geçip ofise giriş yaptığımda şampiyonalar ligi atmosferini hissettim. Toplantı odamızı ararken birbirinden farklı dizayn edilmiş çalışma alanlarını görünce aslında çok beğendiğim İstanbul ofisimizin zamanın gerisinde kaldığını düşünmeye başladım. Planlandığı saatte başlayan toplantımız öğle yemeğinin bile masamıza kadar geldiği yoğun bir içeriğe sahipti. Toplantıdan çıkarken önümüzde hedeflerimiz ve planımız mevcuttu.

Ekiple Keyifli Bir Yemek

Akşam yine restorana mahçup olmayacak şekilde rezervasyon saatimizden hemen önce mekana gittik. Bu kez neredeyse tüm workshop ekibiyle yemekteydik. Keyifli sohbetle beraber arkadaşlarımın çoğunluğunun Risotto tercihine karşı Ravioli seçimimle doğru kararı vermiştim. Tadı damağımda kaldı desem abartı olur ama kokusu baya bir etkileyiciydi. Workshop için son akşamdı ancak benim Lozan’da iki günüm daha vardı. Bu sebeple arkadaşlarımla vedalaşıp geceyi bitirdim.

Lozan’daki üçüncü günümde ofise tek gittim. Giriş yapıp asansörü çağırdığımda bir süprize karşılaştım: CEO Jacek Olcak. Şaşkınlıkla sadece “Good morning” deyip karşılık aldıktan sonra kafamı öne eğdim. Hazırda bir “elevator pitch”im olsaydı acaba ne olurdu? O gün çalışacağım Duty Free ofisini tea lady’lere, temizlikçi abilere sorsam da kimse yardımcı olamadı. En sonunda bir tea lady cebindeki telefonu çıkarıp MS Teams’i açıp görüşeceğim kişilerden birinin profiline girip odasını nasıl bulabileceğimi tarif edince hazine bulmuş gibi sevindim. Öğle yemeğinde daha önceden yaptığımız plana sadık kalıp iş yaptığımız arkadaşlarımızla olduk. Ofiste balıktan fast-food’a, kahvaltıdan tatlıya kadar servis yapan bir restoranın olması ve bunların hazır ya da dondurulmuş ürünler olmaması dikkatimi çeken önemli bir konfor alanıydı. Bir süredir beraber çalıştığım mentörüm de öğle yemeğinde bize katıldı ancak çok fazla paylaşımda bulunamayınca akşam da beni yemeğe çıkardı. Mesai sonrası beraber bir Lübnan restoranına gittik, gelecek için planlar yapıp yine tavsiyelerini aldım. Çıkışta da ofisin önünde bir hatıra fotoğrafı çektirmesek olmazdı.

Mentör=Akıl Hocası

Lozan’daki son günüm dönüş günü olması sebebiyle sabah erken uyanıp bavulumu hazırlayıp son kez manzarasını çok beğendiğim huzurlu gölün çevresinde dolaşıp yelkenlilerin fotoğrafını çektim. Saat sekiz olduğunda Migros açıldı ve yaptığım pazar araştırmaları ve Türk arkadaşlarımdan aldığım tavsiyeler sonucunda İsviçre’deki fiyat performans ürünü Victorinox mutfak bıçaklarından kendimize ve ailelerimize satın aldım. Türkiye’de bulmamızın zor olacağı çikolatalardan da sepete ekleyip otelden çıkış aldım ve ofise geçtim. Bu kez çalıştığımız ofisi kendim bulabilecek kadar HQ’yu tanıyordum. Lozan’a kadar gelmişken görüşmek istediğim Türk arkadaşlarımla da ofiste sohbet ettikten sonra önce otobüse binip tren garına, oradan da Cenevre Havalimanı’na ulaştım. Aynı uçakta Nevzat Aydın’ı görünce bir kez daha İsviçre’nin sosyo-ekonomik koşulları hakkındaki düşüncem doğrulanmıştı. 

Nevzat Aydın da olsa, business class ta olsa o sıraya girilecek

Özetleyecek olursam, hep görmek istediğim İsviçre ve özellikle Lozan’ı görmek beni çok mutlu etti. Bunun için gerçekten şükrediyorum. Profesyonel açıdan bakacak olursam, orada işim açısından karar verici ya da yönlendirici pozisyonda pek çok kritik roldeki paydaş var. Buralarda onlarla olmak, fikir alışverişinde bulunmak kesinlikle çok değerli. Tatil için ailemle gelmeyi, MS Teams bildirimlerinden, Outlook’taki acil maillerden uzak doğanın ve dinginliğin tadını çıkarmayı çok isterim. Kim bilir belki bir sonraki sefer ailece bu gemiye bineriz. Neden olmasın?

Wrapping Up Movember: A Journey of 60km for Men's Health

As Movember comes to a close, I find myself reflecting on the impactful journey of moving 60km throughout the month. The motivation behind each step was profound symbolizing the 60 men we lose every hour, every day. Movember, a leading charity, is reshaping the landscape of men's health, addressing issues like prostate cancer, testicular cancer, mental health, and suicide prevention.

Throughout November, I had the privilege of joining forces with Movember, contributing to the collective effort to make a difference in the lives of men. The mission is clear: to stop men from dying too young. The 60km challenge became more than just a physical feat; it became a tribute to the lives we aim to save. Each stride represented a step towards raising awareness and funds for vital research and support programs. The statistics are staggering, but Movember's commitment to change is unwavering.

In the realm of prostate cancer, Movember is pioneering advancements in research and treatments, aiming to improve outcomes for those affected. The focus on testicular cancer ensures that early detection and intervention become accessible to all. Mental health and suicide prevention initiatives strive to break down stigmas and provide the necessary resources for those in need.

As we finalize this Movember, I am thankful to everyone who supported this journey. Whether through donations, encouraging words, or simply sharing the mission, your involvement has made a tangible impact. Together, we are part of a movement that goes beyond a month on the calendar; it's a commitment to long-lasting change.

While we transition from Movember into the future, let's carry the spirit of awareness, support, and advocacy forward. Men's health matters, and by standing together, we can continue making strides toward a world where men live healthier, happier, and longer lives.

You may also like to read: Volkan Yorulmaz: Supporting Men's Health: My Movember Journey

Celebrating a Decade at Philip Morris International: Reflections and Gratitude

Exactly 10 years ago on Thursday, August 1, 2013, my journey with Philip Morris International (PMI) began. When I stepped through the factory's doors, it was called Philsa Philip Morris Sabancı Sigara ve Tütüncülük A.Ş. at that time, and my title was General Ledger and Tax Analyst. Even before joining PMI, while working at Opel Turkey (officially called General Motors Türkiye Ltd. Şti.), our factory's neighbor, I always had my mind set on working here, thinking, 'One day, I will work at Philip Morris.' Prior to that, I spent three years at PwC and GM, but my thoughts were always on Philip Morris. When I saw the job posting for the position I eventually started, I felt like the job description perfectly fit me, and that awaited 'one day' was drawing near. The interview process, which started in May 2013, my wife's pregnancy, the days of that summer when we thought about the blessing that the baby would bring, and the anticipation of my first day at work after eagerly waiting for the end of my notice period at GM, all led me to that moment. On that first day, I met new colleagues, experienced working in a production company, and got answers to many things I had wondered about, such as the famous Philip Morris meals. Time flies and today marks exactly 10 years since that day.

There were days when I celebrated with clenched fists as if I had won a championship and days when I couldn't resist but cry. I met people here whom I loved and trusted, as well as colleagues whose paths I wish had never crossed. I dreamed, achieved some of those dreams, and continue to strive and work hard to reach others. Whether they will be granted or not, I cannot know, but I am doing my best and will continue to do so to avoid saying 'I didn't try' when my story at this place comes to an end. When I took that first step ten years ago, perhaps I imagined different things for today, but I know how to be grateful and keep going.

Looking back, I see that I made one of the most important decisions in my life during my Philip Morris journey. In the year 2020, when the pandemic entered our lives, while working as a Senior Tax Analyst, almost every morning, new tax regulations were published in the Official Gazette, and during that time, an opportunity emerged at our Duty-Free affiliate for a position with the title 'Manager,' which I had desired to reach for so long. In those days when remote work was not a common practice as it is today, the fact that this position was in Istanbul made me face a tough decision: either accept and move to Istanbul or reject it and stay in Izmir, wait for another opportunity. When I made the decision that I now say 'Thank goodness' for, I had my wife's support, but I had to separate her from Izmir, a city she loved dearly. Thankfully, Istanbul has always been kind to us. We made one of the most significant changes in our lives with PMI. Building a list of beloved people in Istanbul has been one of the greatest gains.

As I celebrate 10 years at Philip Morris International, I'm filled with gratitude for the opportunities, connections, and growth it has brought into my life. This journey has been a testament to the power of dreams, resilience, and embracing change. I am eager to continue my career journey with enthusiasm, determination, and an open heart. Here's to the next chapter and the endless possibilities that lie ahead. Let's keep moving forward together.

Mentorluk Deneyimim: iGrow

2021 yılının başında, tam da yeni yılın iş ve bireysel gelişim hedeflerini belirlediğim dönemde Yammer’da iGrow mentorluk programının 2. dönem başvuruların açıldığını görmemle beraber PMI içerisindeki bu mentorluk programından haberdar oldum. Mentorluk programının ilk dönemi 2020 yılında Life Sciences departmanı çalışanları tarafından başlatılmış ve program başarılı olunca global bir seviyeye taşınarak 2021 yılında tüm PMI çalışanlarına açılmıştı. O dönemki yöneticimi de bilgilendirerek, öncesinde belirlediğim gelişim alanında çalışmak üzere programa mentee olarak dahil oldum. Programın faydasını görünce 2022 yılında da farklı bir gelişim alanı belirleyerek bu yolculuğa devam ettim. Bu yıl için de programa katılmak için başvurumu yaptım, heyecanla eşleşeceğim mentorumu bekliyorum.

Mentorluğu tecrübe ve deneyim paylaşma ilişkisi olarak nitelendirebiliriz. Deneyimli kişi, tecrübesini bu tecrübeye ihtiyacı olan kişiyle paylaşır. Burada sadece olumlu tecrübeler değil olumsuz tecrübeler de paylaşılır. Böylece mentee, mentorunun deneyimlerinden faydalanmış olur. Mentor, edindiği tecrübeleri mentee’ye ileterek onun deneyim kazanmasına fayda sağlayarak bir tatmin ve doyum elde ederken, mentee de yaşayarak çok daha zor ve uzun zamanda elde edeceği tecrübeyi bir başkasından daha efektif bir şekilde elde edebilme fırsatını değerlendirir.

Bence mentor olmanın ilk ve en önemli şartı gönüllü olmaktır. Mentorun tecrübesini aktarmak için duyduğu istek ve gönüllülük sürecin başarısına doğrudan etki eder. Yeri gelmişken, kişisel olarak mentorluk sürecinin başarısız olması gibi bir durumun söz konusu olmadığını düşünüyorum çünkü en kötü deneyimde bile ne olmayacağınızı öğrenirsiniz. Benim bakış açımdan iyi bir mentor, benim geçtiğim yollardan benden önce geçmiş, dolayısıyla beni anlayabilecek ve bana destek olarak deneyimlerini aktarabilecek kişidir. İlişkiye mentee tarafından bakacak olursak, öğrenmeye ve gelişime açık olmak en önemli şarttır. Gelişim ve öğrenme demişken, bu iki kavram beraberinde hedef getirir. Mentee’nin sürece başlarken spesifik bir hedefi olmalı ve nereye gitmek istediğini bilmelidir. Mentorluk ilişkisinde proaktif olması gereken taraf mentee’dir. Mentee, hedefini bilmeli, doğru soruyu sorabilmeli ve zamanı iyi yönetmelidir. Karşılıklı sorumluluklar nelerdir diye düşündüğümde ilk aklıma gelen güven oluyor çünkü her iki taraf da samimiyetini açtığı bir ilişkide kafalarında güvenle ilgili bir kaygı duymak istemez. Bununla beraber, hepimiz gündelik iş sorumluluklarımızın üzerine bu süreç içerisinde yer aldığımız için zaman yönetimi ve ayırdığımız zaman içerisinde karşımızdakine konsantre olmamız ilişkinin verimliliği açısından önemli bir başka husus.

Sizlere biraz da menterloop’tan bahsetmek istiyorum. Programa dahil olduğum 2021 yılında bir MS Teams gurubu kurulmuştu. Duyurular, grup toplantıları ve mentorluk programından daha iyi faydalanabilmemiz için okumamız önerilen dökümanlar buradan paylaşılıyordu. Program başarılı bir şekilde ilerledikçe hem katılımcı sayısının artması hem de daha iyi yapılandırılmış bir sistem getirmek için katılımcılar menterloop uygulaması kullanmaya başladı. Mentorloop; EY, HP, Dior, Hilton gibi kurumsal müşterileri olan, 65bin kişiden fazla kayıtlı kullanıcısı olan bir platform. Sahip olduğu algoritması sayesinde kalabalık bir grubun içerisinde en akıllı eşleştirmeyi yapabiliyor. Böylece profilinizde belirttiğiniz ilgi ve gelişim alanlarına göre eşleştirmeler sistem tarafından yapılıyor. Silolar halinde çalışmamızın önüne geçmek için farklı coğrafya, kültür, dil ve ünvandaki kişileri eşleştirmesi sayesinde Menterloop dahiliyetçi, kapsayıcı bir ortam yaratıyor.

Özetleyecek olursam, mentorlük bir terapi, kariyer koçluğu ya da tüm sorularınızın cevabını bulacağınız bir süreç değildir. Aksine spesifik bir alanda mentee iseniz başkasının deneyimlerinden faydalanabileceğiniz mentor iseniz bir başkasının hayatına fayda katabileceğiniz bir ilişkidir. Gelişim odaklı ve güvene dayalı bu ilişkide doğru soruları sorarak ve zamanı iyi planlayarak maksimum faydayı elde edersiniz. Gelişim ihtiyacı konusunda açık ve şeffaf olduğunuz sürece hazırlıklı bir şekilde bu toplantılara katılırsanız programdan maksimum faydayı alacağınıza inanıyorum. Bu yolculuğu çıkacak olan herkese hedeflerine doğru somut adımlar atacağı verimli ve başarılı bir dönem dilerim.

17 Mart 2023 Cuma günü Mentorluk Programımız iGrow'daki deneyimleri Philip Morris Türkiye ekibi ile paylaştığım toplantımızdan bir hatıra

PMI’s 2022-Q3 Results: Strong Growth Fundamentals & Exciting Future

Philip Morris International (PMI) Third Quarter 2022 Earnings Conference Call took place on 20 October 2022. As a PMI employee, I also joined the conference to take some notes and read the press release containing detailed information on PMI’s 2022 third quarter results.

Firstly, the day that earnings conference is organized marks a historic day in PMI’s journey towards a smoke-free future, with the certainty that the company will have full control of IQOS, the world’s leading smoke-free product in the United States, the world’s largest smoke-free market from April 30, 2024.

Strong Underlying Momentum towards Smoke Free Future: PMI's 2022-Q2 Results

Philip Morris International stock rose 4.2% on Thursday, July 21 just after Q2 2022 results were released. In this content, I will review PMI’s 2022 second quarter results and I will share some key financials and more about their drivers to make the numbers more meaningful. Since I am an employee of PMI, I prefer to use “we”, “our” and “Emmanuel” (for our CFO Babeau) in some parts of the below content.

The data used in this content are all publicly available and it does not include any investing recommendation.

Q2 2022 results reflect the exceptional one-off events that have impacted PM this year, notably the loss of earnings from Russia and Ukraine and the sharp appreciation of the U.S. dollar. Excluding these, the underlying drivers behind PM’s businesses have remained strong, and full-year 2022 outlook has been raised on an organic basis.

Before the highlights, we need to remember the announcement that PMI intends to exit the Russian market in an orderly manner, as the complexities of continuing to operate in Russia increase, such as supply chain challenges and financial and banking sector restrictions.

PMI demonstrated strong underlying momentum in the second quarter of 2022 with another quarter of positive volume supporting better-than-expected growth. Most impressive was the continued excellent IQOS performance and strong Q2 user growth of more than 1.1 million, demonstrating further acceleration compared to Q1 as device limitation and COVID restrictions continue to ease. This reflects strong momentum in the EU region, Japan and developing markets.

The proposed addition of Swedish Match would further boost our future financial profile. This is a value-creating offer for both sets of shareholders with a compelling strategic and cultural fit, providing an additional opportunity to accelerate our smoke-free future.

During Q2 2022, PMI had good volume growth and good currency-neutral revenue growth. However, EBIT growth was weaker due to margin contraction and, including currency, both revenues and EBIT fell year-on-year.

Volume growth would have been stronger except for supply chain constraints, and the margin contraction was also due to one-off factors.

Let’s dive deep into the stories behind these numbers and ratios.

In 2021, Ukraine accounted for around 2% of PMI’s total cigarette and heated tobacco unit shipment volume and under 2% of PMI’s total net revenues.

In 2021, Russia made up almost 10% of total shipment volumes and around 6% of PMI net revenues.

Despite the impact of war in Ukraine, PMI increased its shipment volume by 1.1% compared to previous year.

Net revenues increased by 5.3% and this has mainly two drivers. The first one is the continued strong growth of IQOS and the second one is ongoing recovery of the combustible business. Here it is critical to keep in mind that the recovery is realized against a pandemic-affected comparison.

When we look at the revenue per unit, we see an increase by 4.1% in total. This increase is especially important because this year there is a delayed timing of shipments, as the company manages the cancellation of planned heated tobacco unit manufacturing in Russia and company faces disruptions in global supply chains generally.

Our operating income margin declined, and this reflected:

Firstly, the investment to further expand and match the speed of PMI's smoke-free portfolio growth, including the initial higher cost of ILUMA devices and heated tobacco units, and the replenishment of distribution channels as device constraints ease to support re-accelerating IQOS user growth;

Secondly, the impact of supply chain extra costs, notably due to the war in Ukraine; and

Thirdly, cost inflation driven by the global pandemic recovery and by the war in Ukraine, notably for certain direct materials, wages, energy and transportation costs.

Lastly, the decline also reflected a challenging prior year comparison, which included productivity savings.

When we look at the assumptions for the next two quarters;

In the third quarter, it is expected that IQOS and combustible volume trends will lead the top line growth.

There are some temporary headwinds which not only impacted PMI but also the whole World and the expectation is that these will ease in third quarter.

And in the last quarter of this year, HTU capacity problems will be better, so shipment volumes for HTU will increase as well.

One of the key updates in last quarter for PMI was its interest in Swedish Match.

Philip Morris International is in takeover talks with Swedish Match over a multibillion-dollar deal that would expand its smoke-free business.

In May, 2022, Philip Morris Holland Holdings B.V. (PMHH), an affiliate of PMI, announced a recommended public offer to the shareholders of Swedish Match to tender all shares in Swedish Match to Philip Morris Holland Holdings at a price of almost 16 billion USD in cash.

This alignment is strategic because it has the potential to create a global smoke free champion with PMI’s leading heated tobacco and Swedish Match’s oral nicotine brands. It will also open US market for PMI with nicotine pouch which has long term opportunities for smoke free categories. But the deal is not completed yet and PMI announces that the transaction is expected to close in the last quarter of this year.

To sum up:

Across H1 as a whole, total shipment growth was strong.

IQOS’ growth was helped by the new ILUMA device.

Combustible products perform well to support smoke-free transformation.

PMI is focused on its smoke free portfolio. IQOS will continue its dominance of the Heat-Not-Burn ("HNB") category, to grow strongly in Europe and remain at least stable in Japan. PMI has also launched its own e-vapor products since 2020 and has entered the nicotine pouch market with its own products on a limited scale.

Management comments reiterated their “unwavering” commitment to the dividend and hinted at the possibility of increasing it with cashflows from Swedish Match after deal close.

In conclusion, PMI provides positive updates for its investors which make the share prices increase.

Smart investors and analysts are focused on how to earn returns and how to cash out. 

Investors and analysts make decisions by asking critical Questions. That’s why I prefer to give a special part for Q&A session from the Investors’ Meeting. The key Questions are on IQOS new user momentum, Swedish Match acquisition, OI Margin decrease, menthol ban in Heat Not Burn Products and reintroducing IQOS in the US market.

The first question is about the strong IQOS new user momentum.

According to Emmanuel, our CFO, People realize all the benefits they can get by switching from combustible cigarettes to the IQOS product.

Emmanuel also states that we are enlarging the choice and that makes IQOS even more desirable and attractive.

Additionally, Emmanuel highlights that launching ILUMA is the second stage of the rocket in the various countries to sell IQOS even higher, so it brings momentum. This can also easily be seen in the above graph.

The second question is about Swedish Match transaction and other potential acquisitions.

Emmanuel highlights that we continue to expect the closing of the transaction in Q4, of course, subject to Swedish Match shareholder acceptance.

He also mentions that the priority and the focus in terms of acquisitions is on Swedish Match for the time being.

The third question is about the decrease in the margins and its relationship with the higher costs of ILUMA and HTUs and if this situation will continue or not.

Our CFO says that inflation is one of the headwinds on the margin. Also, there are costs that are coming from the disruption in the supply chain, notably coming from the war in Ukraine.

Moreover, there is a temporary acceleration of air freight charges. Emmanuel mentions that We're not going to keep air shipping on the long term.

In conclusion, inflation and other headwinds seen in Half One are temporary from PMI perspective.

The fourth question is about the full availability of devices when there is chip shortage.

Emmanuel states that it is crucial for smokers to have Access to IQOS device in order to get converted. He mentions that we see a rapid replacement of existing IQOS blade device by IQOS ILUMA in the markets where ILUMA is launched. So, the main objective is to equip the core consumer with new devices. According to Emmanuel, this temporary shortage will finalize so its temporary impact on the margin will be cleared.

The fifth question is about the impact of the proposed elimination of menthol variants in the EU for heat-not-burn products.

Emmanuel highlights the facts that this plan needs to be approved by the Parliament and by the European Council. Emmanuel reminds that it already has happened on a combustible business with almost no impact or very limited impact. So, it isn't clear that this will have a meaningful impact if it happens on our heat-not-burn business.

The sixth question is about the timing of reintroducing IQOS into the marketplace in the US.

For those who are not aware of the latest IQOS situation in the US market, in November 2021, PM USA had to remove IQOS from the market due to an import ban and (cease-and-desist) orders from the U.S. International Trade Commission (ITC). Altria, which runs Philip Morris USA, announced it “does not expect to have access to IQOS devices” in 2022, but “remains focused on returning IQOS to the market and is working on re-entry plans.” 

Emmanuel only shares with the analysts that we expect to be in a position to introduce IQOS in H1 of 2023.

The last question is about Russia, mainly exporting IQOS devices to Russia and taking cash out of Russia for dividend payments are questioned.

Our CFO shares that there is no sanction for device export to Russia. Thus, although there are some limitations coming from supply chain related problems, exportation is not impacted.

For dividend Payment, it is not exercised by PMI so Emmanuel could not provide an answer about it. On the other hand, intercompany payments and royalties are paid without any problem.

All these announcements, investments and financials support PMI’s ambition to become a majority smoke-free product company by 2025, building on its 2016 commitment to a smoke-free future.