New Zealand: Philip Morris forced to withdraw its IQOS device from sale

Driven by the tobacco industry, Health Minister Casey Costello's plan to encourage people to switch to heated tobacco products in New Zealand to achieve a tobacco-free generation by 2025 has hit a major snag, with sole supplier Philip Morris forced to withdraw its IQOS heated tobacco device from sale in the country.[1].

Last July, Costello cut excise duty on heated tobacco products by 50%, resulting in a tax loss of A$216 million. The measure was introduced in an effort to encourage smokers to switch to the products as an "alternative to tobacco".

Withdrawal of sale of IQOS heated tobacco devices

In New Zealand, unlike in France, the IQOS device is classified as a vaping device and has been subject to regulations from the New Zealand Labour government that require these devices to have removable batteries and child safety mechanisms. This regulation came into effect on October 1st. Philip Morris has thus had to withdraw from sale its heated tobacco product but also its vaping product, the VEEV ONE, because these products do not comply with the new regulations.

Documents show that Costello tried to delay the implementation of the regulation by two years. But the Cabinet only agreed to a six-month delay from the original planned date of March 21, 2024. In her argument for a delay, Costello cited the difficulties that international players in the nicotine industry might face with the regulation.

"It is likely that the higher quality vaping devices used by adult ex-smokers will soon no longer be available domestically, as high-end manufacturers targeting international markets may not produce New Zealand-specific models," she wrote.

C. Costello's speech is a word-for-word repeat of Philip Morris's.

Costello says heated tobacco has a “similar risk profile to vaping,” but independent public studies highlight that there is evidence that using heated tobacco is more harmful than vaping and that there is no evidence that heated tobacco is effective for smoking cessation.

Costello says she got her own "independent opinion on the effectiveness of heated tobacco as a smoking cessation tool", but she declined to be interviewed about it. She was also unable to provide any sources to support her claims. New Zealand's chief ombudsman, Peter Boshier, expressed concern that the junior minister had been unable to produce any documents regarding the provenance of the notes and opened an investigation into the matter.[2].

Heated tobacco products and electronic cigarettes are often confused by the general public and in the media. This confusion is deliberately sought and maintained by Philip Morris. Philip Morris' communication states that IQOS and VEEV (vaping) "reduce the harmful components generated by an average of 95% compared to cigarette smoke", which implies that vaping products and heated tobacco have very similar risk profiles. In addition, the tobacco company markets its heated tobacco devices and vaping products under a common name of "combustion-free products". This marketing argument is a way for Philip Morris to improve its image in the eyes of the public and public decision-makers, or even to present itself as a player committed to health. This common communication misleads the consumer who believes they are consuming an equivalent product (heated tobacco and electronic cigarette) in terms of health risks.

This confusion is compounded by the fact that in New Zealand, IQOS devices are sold in vaping stores. Despite the regulations coming into force, a mystery shopping operation led by the volunteer group Vape-Free Kids NZ[3] identified more than 20 stores in Auckland, Wellington and Christchurch that were continuing to sell IQOS heated tobacco devices. According to vape-free kids NZ, many retailers visited said they were unaware that the devices could no longer be sold due to the current regulations. Some were even waiting for new shipments of IQOS products; others said they had not received any information telling them to stop selling or return the devices to their suppliers.

Costello continues to maintain that she has no ties to the tobacco industry and that it does not influence her decisions. Two people who held senior positions in her political party now work for Philip Morris in corporate affairs and communications.

©Generation Without Tobacco

AE

[1] Guyon Espiner, Casey Costello's tobacco tax cut plan stalled as device pulled from shelves, RNZ, published October 2, 2024, accessed same day

[2] Tobacco-free generation, New Zealand: Smokefree 2025 target unlikely to be met, published September 29, 2024, accessed October 2, 2024

[3] Adam Burns, Vape stores caught selling non-compliant Heated Tobacco Products, RNZ, published October 2, 2024, accessed same day