US tobacco giant Philip Morris International (PMI) is fighting to get Britain, France and other countries to make it easier to promote alternatives to cigarettes such as heated tobacco and vaping.
PMI embarked on a strategic shift six years ago to become a smoke-free company, against a backdrop of increasingly stringent regulations in many countries, costly lawsuits and falling smoking rates.
The group has injected more than $10 billion (£8.08bn) into new products, which now account for a third of its $32 billion sales for the financial year 2022.
It has a very limited presence in the vaping e-cigarette market.
But in the UK, the promotion of conventional or heated tobacco is forbidden, while gleaming e-cigarette stores are popping up all over the place.
In countries where "alternatives" are not allowed, such as Turkey, Belgium or Singapore, PMI has no plans to move away from conventional cigarettes.
Stopping the sale of traditional cigarettes will "make Philip Morris look better" but not affect the one billion smokers who can "continue buying a product from somebody else", Jacek Olczak, PMI chief executive, told AFP.
Jacek Olczak, CEO, Philip Morris International, speaks onstage during the 2021 Concordia Annual Summit on September 21, 2021 in New York City. (Photo by Riccardo Savi/Getty Images for Concordia Summit)
Instead, he wants to "convince the governments... (to) allow the alternatives and we can start reducing the sale of cigarettes much faster."
In countries open to alternatives, he sees this deadline within 10 years.
"Our vision is of a smoke-free future," he added.
Risks
Heated tobacco products, or HTPs, use a high heat to decompose tobacco, via a process called pyrolysis, which does not set it on fire or burn it, therefore avoiding creating smoke.
PMI acknowledges that alternatives to conventional tobacco remain addictive because they contain nicotine, and are not "risk-free".
Health organisations are split about their level of harmfulness.
"In recent years, HTPs have been promoted as reduced harm products or products that can help people quit conventional tobacco smoking," the World Health Organization (WHO) states.
"HTPs expose users to toxic emissions, many of which cause cancer and currently there is not enough evidence to suggest that they are less harmful than conventional cigarettes."
The US Centers for Disease Control and Prevention (CDC) also stresses that tobacco, including heated tobacco, is "harmful" and "highly addictive".
It notes that: "Additional research is needed to determine whether adult cigarette smokers who completely switch to heated tobacco products might reduce their risks of tobacco-related disease".
Tobacco kills eight million people a year worldwide.
However, the WHO, the UK's National Health Service (NHS) and even anti-smoking groups agree with Olczak that alternatives to conventional tobacco can help some people to quit.
"People smoke for the nicotine, they die from the tar," said Deborah Arnott, head of British NGO Action on Smoking and Health (ASH).
"We support nicotine containing e-cigarettes as they help adult smokers quit, as does licensed medicinal nicotine replacement therapy which is recognised by the WHO as an essential medicine."
However, Arnott takes issue with PMI being allowed to promote heavily its new products, "when they are a tobacco product".
She argued that PMI's sole objective is "to protect its future earnings streams".
Habits
For Olczak, the many restrictive policies - age verification, hidden packets at retailers, unmarked packs with health warnings - have had only a "minimal" impact.
He instead attributes the fall in smoking in Sweden and Japan to the marketing of so-called alternatives.
Smoking in Japan has fallen from 84 per cent of men in the 1960s to around 30 per cent in 2018, with Japan Tobacco International attributing the decline to a growing public awareness of health issues, tougher regulations, price rises and an ageing population.
Arnott notes that PMI's heated tobacco "has been most successful in Japan, where it can be actively promoted and electronic cigarettes are banned".
In Sweden, the public health agency notes that the use of alternatives such as snus (a form of snuff popular in Nordic countries) or e-cigarettes increases the risk of switching to conventional cigarettes among new users - a particular concern for younger people.
On its website, the agency says it does not have enough data to say that the use of alternative products leads to a change in tobacco consumption.
The retail association has expressed deep concern over the latest Office for National Statistics (ONS) data showing that the UK retail sector has lost nearly a quarter of a million jobs over the past five years.
The British Independent Retailers Association (Bira), which works with over 6,000 independent retailers across the UK, has highlighted the devastating impact these job losses are having on high streets nationwide.
The ONS figures reveal that as of December 2024, there were 2.88 million retail jobs in the UK, with the four-quarter average dropping to 2.84 million jobs. This represents a decline of 70,000 from the previous year and 249,000 fewer jobs than five years ago.
The data further highlights that full-time jobs have fallen by 106,000 and part-time roles by 142,000 compared to five years ago, painting a concerning picture for the sector that has traditionally been a significant employer across the UK.
Andrew Goodacre
Andrew Goodacre
"These alarming figures confirm what we've been hearing from our members across the country," said Andrew Goodacre, Bira CEO. "Independent retailers are facing unprecedented challenges, and this record number of job losses reflects the severe pressure on high streets throughout the UK. In the past year alone, we've seen over 14,000 independent shops close their doors permanently, with many more struggling to survive.
"The impact is felt most acutely in our town centres, where independent retailers have traditionally been the backbone of local economies. With a 14 per cent vacancy rate on high streets across the UK, we are witnessing the hollowing out of once-vibrant communities."
Bira is particularly concerned about the disproportionate impact on part-time jobs, which have seen the steepest decline. Part-time positions are crucial for many independent retailers who rely on flexible staffing models to manage costs while maintaining customer service levels.
Mr Goodacre added: "Independent retailers need meaningful support now more than ever. This isn't just about preserving jobs – it's about protecting the character and vitality of our high streets. We are calling on the government to implement an urgent review of business rates, provide targeted relief for small retailers, and develop a comprehensive strategy to revitalise town centres."
Bira's conversations with members indicate that retailers across the board are expressing significant concerns about their ability to maintain current staffing levels over the next 12 months, with rising operational costs cited as the primary challenge.
Nisa retailers have joined forces to raise an impressive £4,270 for Sunshine and Smiles, a Leeds-based charity that provides vital support for children and young people who have Down syndrome and their families.
Sunshine and Smiles was founded in 2011 as a small community support group and became an official charity in 2013. As the only dedicated Down syndrome support network in Leeds, they play a crucial role in the local community, offering essential resources and guidance to families in need.
The substantial donations were made through Nisa’s Making a Difference Locally (MADL) charity by several West Yorkshire based Nisa retailers, including Manpreet Singh Grewal, Nikul Patel, Amit Patel, Aman Barhgota, Aaron Singh Barhgota, Bhavesh Odedra, and Yathursan Sabaratnam.
"It’s fantastic to see Nisa retailers coming together to support such an important local cause,” said Kate Carroll, Head of Charity at Nisa. “Through Making a Difference Locally, retailers can directly benefit the communities they serve, and we’re proud to see these donations making a real impact."
The contributions will help Sunshine and Smiles continue their invaluable work, supporting children and young people with Down syndrome across Leeds.
World Down Syndrome Day, observed annually on March 21, is a global awareness day to raise awareness about Down syndrome and promote the rights, inclusion, and well-being of people with Down syndrome.
"Supporting Sunshine and Smiles is incredibly important to us,” said Nikul Patel, owner of Nisa Local Gateway Express in Leeds. “As a retailer embedded in the community, it's rewarding to know our contribution will help provide vital support for families in need."
Ailith Harley-Roberts, Service Delivery Manager for Sunshine and Smiles, said: “On this World Down Syndrome Day, we are incredibly grateful to the West Yorkshire-based Nisa retailers for their generous donation. Their support makes a real difference to the lives of children and young people with Down syndrome in our community, helping us continue to provide vital services, activities, and guidance for families.”
Nisa retailers raise funds for MADL through the sale of Co-op own-brand products in their stores, with a percentage of every purchase being added to their charity fund. This initiative enables Nisa partners to support a wide range of local charities and community groups, ensuring positive contributions where they matter most.
The manufacturer of Nestlé Cereals, Cereal Partners UK (CPUK), has announced plans to close its Bromborough factory, putting approximately 300 jobs at risk.
Production at the site in Merseyside, which produces the Cheerios brand and own-label rice crispies and cornflakes for leading supermarkets, is set to move to another facility in Staverton, Wiltshire, as part of a £74 million investment plan.
CPUK also revealed that it will cease production of supermarket own-brand cereals at the end of its current contracts.
A spokesperson for the company noted that both its factories are currently below capacity, adding, “These proposals would adjust CPUK&I’s manufacturing footprint to better match demand and simplify our portfolio to focus investment on our branded cereals.
“Sales of breakfast cereal are in significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options.”
Matt Denton, regional organiser from the GMB union, expressed concern over the announcement. “For three decades, CPUK has been at the heart of this community, providing good jobs and supporting countless businesses,” he said.
“Three hundred skilled workers facing an uncertain future is simply unacceptable. GMB will fight to protect jobs, secure fair treatment for workers and explore all potential options to mitigate the impact of this closure.
“We demand urgent talks with management and call on the company to engage with us to make sure workers’ voices are heard, and livelihoods are prioritised.”
A statement from the company said: “CPUK&I regrets the potential impact on employees, and the immediate priority is to work together to review the proposals while supporting people through this process with care and sensitivity.
"CPUK&I remains open to alternative solutions, including a potential sale of the Bromborough site and/or the supermarket branded cereal manufacturing itself.”
Justin King CBE, Chair of National Lottery operator Allwyn, visited Cardiff retailer, Rashid Khalid – who owns Broadway Post Office – to present him with a plaque to celebrate his store and its National Lottery players raising more than £650,000 for Good Causes to date.
This funding has helped support people and organisations in his local community, across Wales and right around the UK.
For example, just a 10-minute walk from Broadway Post Office on Adeline Street is Green Squirrel – a National Lottery-funded social enterprise that creates opportunities for greener living. In September 2024, the organisation was awarded £323,0000 in National Lottery funding to deliver its Railway Gardens project which brings the community together to learn about climate and nature.
“It’s really nice to be recognised for raising money for National Lottery projects by selling tickets in my shop,” said Khalid. “National Lottery funding makes a huge difference to local communities like mine.
“I am personally big on charity and that’s why I know how important The National Lottery is to people and communities. At my shop, we always do as much as we can to help those less fortunate in the area. During Ramadan, which is happening now, we provide fresh food to some of the local mosques for when they break their fast in the evening.”
Since the first National Lottery draw in 1994, shopkeepers like Rashid have helped raise more than £50 billion for National Lottery Good Causes. This has funded more than 650,000 individual grants across the UK – that's hundreds of projects in every UK postcode district.
Justin, a prominent figure in retail whose career spans 30 years including as former Sainsbury’s CEO, was able to impart some retailing advice to Rashid – who has been selling The National Lottery for over 24 years – and thank him for his contributions to Good Causes by selling National Lottery tickets.
Justin King commented: “When people think of The National Lottery, the first thing they probably think of is the big winners that it makes. But retailers like Rashid are critical to the success of The National Lottery and the billions of pounds it raises for Good Causes every year – funding that goes to projects in his local community and right around the UK. So, I’d like to thank him and his store’s players for the amazing role that they've played in this success story over the years.
“The National Lottery has around 2,600 committed retailers across Wales acting as its public face. Since the first National Lottery draw in November 1994, more than £2.2 billion has been invested into Good Causes in Wales, benefiting more than 74,000 arts, community, sports and heritage projects throughout the country.”
Some other projects that have been funded in Wales include: WeMindTheGap, which was recently awarded £4.9 million to support its work with disengaged young people across north Wales who have often encountered adverse childhood experiences, resulting in high levels of isolation; Wrexham-based Cariad Pet Therapy which delivers pet therapy to isolated individuals in the community and in care settings, hospitals, mental health units, schools and workplaces across South Wales; and Horizons/Gorwelion, an initiative which helps to foster new talent in the Welsh music scene thanks to The National Lottery funding.
Convenience stores emerged as largest growing category in terms of store opening last year, a recent report has stated, showing overall decline in chain outlet closures with 2024 having the second fewest closures in a decade, reflecting an improving picture for retailers.
According to Store Opening and Closing Data 2024 by PwC, a total of 12,804 shops and outlets belonging to multiples and chains (those with five or more outlets) exited UK high streets, shopping centres and retail parks in 2024.
This is equivalent to 35 closures per day, a decrease from last year and the second fewest closures in a decade – closures were only lower in 2022.
Openings are following a similar trend, with numbers slowing slightly to 25 per day. This is an improvement from the number of store openings during the pandemic but lower than the 34 per day peak during the mid-2010s.
The fastest growing category this year was convenience stores, as large supermarket chains accelerated growth in the fastest growing store format in the UK grocery market.
In fact, the net growth of full-sized supermarkets slowed slightly from the previous year, as discounters in particular slowed down their roll out plans.
Coffee shops were the only other category with more than 1 net opening per week in 2024.
This category saw a continuation of openings out-of-town and in drive-thrus seen in previous years, as well as chains expanding into city centres as the pandemic working-from-home trend began to reverse.
When it comes to declining categories, half of all net closures are accounted for by four categories- chemists, pubs and bars, banks, and car-related outlets.
However, these net declines are generally smaller than those seen in previous years, reflecting the improving closure trend across the board, states the PwC report.
This year’s results show higher net closures in the South and East of the England, while Wales, Scotland and the North West have seen fewer net closures.
In line with last year’s results, retail parks have continued to grow in 2024, significantly outperforming other locations and maintaining the positive performance.
Encouragingly though, rates of decline have fallen across all other location types over the last year too. For instance, shopping centres have more than halved the number of closures in 2024, with their recovery being boosted by an increasing pivot to growing leisure categories.
Meanwhile even high streets have seen net closures decline by about a quarter compared with 2023.
This year’s data reinforces a continued move away from the high street, where slower openings that are unable to offset concentrated closures. In contrast, out-of-town locations are seeing fewer closures and a net increase in store openings.
The results for 2024 show improvement. Closures are stabilising with fewer one-off failures and restructurings leading to just 10 net closures per day, three less than in 2023.
However, long-run analysis does show the 2 per cent per annum decline in chain outlets is in-line with the wider trend of shopping and services continuing to move online, despite the stated preference of many younger consumers to shop in store.