IQOS mini-cigarettes banned from import into the United States

Philip Morris International (PMI) and its partner Altria Group will be banned from importing IQOS mini-cigarettes into the United States, the U.S. International Trade Commission ruled on September 29, 2021, amid a dispute between the cigarette companies and Reynolds American Inc., a subsidiary of British American Tobacco.[1].

According to the US Trade Commission, Philip Morris International and Altria are infringing on two patents belonging to the manufacturer Reynolds. As a result, an import ban and a sales ban on products already imported will come into effect in the United States within the next sixty days.

With IQOS, new tobacco and nicotine products are a survival issue for cigarette manufacturers

The decision comes amid fierce competition among manufacturers to gain control of new tobacco and nicotine products. Last year, Philip Morris International received marketing authorization from the Food and Drug Administration (FDA) for IQOS as a product that reduces consumer exposure to certain harmful chemicals. However, the FDA's recognition of a reduction in exposure does not in any way constitute recognition of a reduction in consumer risk. Until now, IQOS was the only heated tobacco device authorized for sale in the United States, giving it a considerable advantage over the competition. While the decision does not significantly upset the economic balance of PMI and Altria, given the small number of IQOS consumers in the United States, it could ultimately weaken the manufacturer's ability to control the market for new products in the country. In this way, Philip Morris, having declared itself "concerned" by the ban, has asked the American Trade Representative to oppose its veto to cancel the decision.

British American Tobacco is catching up

For its part, British American Tobacco recorded a sharp increase in the number of consumers of its new products in 2021, estimated at 16.1 million worldwide, compared to more than 20 million for Philip Morris International. The manufacturer, which, unlike PMI, has not received authorization from the Food and Drug Administration, welcomes the decision of the American Trade Commission. Indeed, according to Reynolds, a subsidiary of BAT, the violation of intellectual property of patents significantly undermines its ability to invest and innovate.

FT

[1] Bloomberg, Philip Morris IQOS Imports Barred in Reynolds Tobacco Fight, 09/29/2021, (accessed 10/04/2021)