Philip Morris International (PMI) has announced the expansion of its IQOS heated tobacco system to the greater Fort Lauderdale area, marking the second U.S. city to receive the product following its successful launch in Austin, Texas. The company's "Be the First" pilot program invites Fort Lauderdale residents aged 21 and over who currently consume nicotine to join a waiting list for early access to the innovative smoke-free alternative.
The Fort Lauderdale launch comes after more than 5,000 adults participated in the initial Austin pilot program, where IQOS is now commercially available. The expansion represents a significant step in PMI's mission to improve public health by providing alternatives to traditional cigarettes.
How IQOS Technology Works
IQOS utilizes heat-not-burn technology that heats tobacco instead of burning it, which significantly reduces the production of harmful chemicals compared to conventional cigarettes. While not risk-free and still containing addictive nicotine, the product has received authorization from the U.S. Food and Drug Administration (FDA) as a modified risk tobacco product, indicating the FDA has found it "appropriate for the promotion of public health."
The system consists of a device priced at $60 and accompanying tobacco sticks available for $8, positioned at a competitive price point to encourage adoption among existing nicotine users.
Florida Market Opportunity
Florida represents a strategic market for PMI, with approximately 3.31 million legal-age consumers regularly using nicotine products. The majority of these consumers currently use cigarettes or other traditional tobacco products, which PMI identifies as the most harmful form of nicotine consumption.
"We believe having a portfolio of satisfying smoke-free alternatives can help traditional tobacco users switch completely and walk away from cigarettes for good," said Stacey Kennedy, U.S. CEO of PMI. "The Fort Lauderdale region offers a dynamic blend of culture and industry, and we're thrilled to introduce IQOS to this community."
Marketing Strategy and Responsible Access
PMI is implementing a targeted marketing approach for the Fort Lauderdale launch, including activations around the Formula 1 Crypto.com Miami Grand Prix weekend. The company will offer educational opportunities at an IQOS lounge and host official launch events.
The company emphasizes its commitment to responsible marketing practices, focusing exclusively on adults 21 and older. PMI U.S. employs independent age-verification systems for digital advertising and restricts access to its platforms to current nicotine consumers who are 21+.
Global Context and Business Impact
IQOS is currently available in approximately 70 countries worldwide. Since its initial launch in Japan a decade ago, PMI estimates that 23 million adults globally have switched from cigarettes to IQOS.
The U.S. expansion comes as PMI reported significant growth in its smoke-free business segment. In its most recent quarterly report, the company announced that shipments of heated tobacco units and oral smoke-free products exceeded 40 billion units for the first time, with full-year net revenues increasing by 14.2%. Smoke-free products now account for 40% of PMI's total net revenue and approximately 42% of gross profit.
Strategic Business Direction
PMI has invested more than $14 billion globally since 2008 to develop and commercialize FDA-authorized smoke-free products. The company aims to capture a 10% share of the U.S. tobacco and heated tobacco unit volume by 2030, building a substantial base of new users in what it considers the world's top market for smoking alternatives.
The company is currently pursuing a limited U.S. rollout of the older version of the IQOS device while awaiting FDA authorization to sell its latest iteration, called ILUMA. The FDA is currently evaluating PMI's ILUMA application, having already authorized the older device and allowed it to be marketed as reducing exposure to harmful chemicals compared to cigarettes.
This strategic focus on smoke-free products is further evidenced by recent reports that PMI is exploring a potential sale of its U.S. cigar business for over $1 billion, though the company has not officially confirmed these deliberations.
Manufacturing and Operations
PMI U.S. operates smoke-free product manufacturing facilities, including Swedish Match North America's plant in Owensboro, Kentucky, which produces ZYN nicotine pouches, and Triaga's facility in Wilson, North Carolina, which manufactures HEETS for the IQOS heated tobacco system.
The company's U.S. affiliates collectively employ more than 2,500 people, with Swedish Match North America maintaining a regional office in Richmond, Virginia.
Corporate Social Responsibility
Beyond product development, PMI U.S. reports having contributed approximately $25 million to charitable causes since 2022. The company's philanthropy efforts include supporting military veterans and spouses, disaster prevention and relief, and grassroots economic development.
PMI U.S. also helped form United to Safeguard America from Illegal Trade, a coalition working to combat illegal trade that has trained more than 36,000 law enforcement officials.
