Philip Morris International (PMI) has signalled that the rollout of its IQOS tobacco device in the US will be slower than expected, reports Reuters.

PMI also said it expects more than two-thirds of its net revenues to come from “smoke-free” products by 2030, up from 50 per cent in 2025. Chief Executive Jacek Olczak said IQOS would launch in four cities in two unnamed US states from 2024, but a nationwide launch would not happen until PMI receives approval to sell the latest version, known as IQOS ILUMA. The company was planning to apply for approval in October and expected it from 2025, he continued. “We need to warm up the tyres,” he said of the initial launch. A national roll-out of ILUMA would follow but in phases, he continued, adding launching in 10 states in the first year would make sense, the report said.

According to the report, Olczak also signalled that PMI’s push into non-nicotine products was no longer a priority. It recently scrapped an ambition for USD 1 billion in net revenues to come from sales of such products by 2025.

Instead, PMI will focus its resources on IQOS and nicotine pouch brand ZYN, Olczak said, adding it had been “too optimistic around acceptance of big tobacco companies operating outside of nicotine”.

PMI also announced updated medium-term targets. including for revenue and earnings per share, and ambitious volume targets for IQOS and ZYN.