"Soy Moderno, no fumo", was the title of a song by the Argentinean band Virus that, mixing cigarette brands in its lyrics, began to be heard on the radio in 1981. Interestingly, that year was the highest record of tobacco consumption who registered the country.
According to calculations of the Ministry of Agribusiness based on data from INDEC, at that time almost 78 tied per capita were purchased. But last year the lowest peak was marked in 75 years: 39 packages per person.
Active policies against tobacco and taxes on derivative products allowed a 30% decrease in consumption in a decade: 56 packages per capita were sold in 2008.
However, in the country there are more than 7 million smokers and sales reached 1,733 million tied. Estimates from the World Health Organization indicate that by 2025 there will still be 1 billion smokers in the world.
In this context, the tobacco companies understand that in the near horizon is the progressive substitution of conventional cigarettes for combustion-free products, which is, among other negative effects, the main cause of diseases related to this habit.
The companies believe that the endorsement of the US agency is the prelude to this type of product is authorized globally, including Argentina. And they expect a nod from the government so that - sooner rather than later - they can bring these devices to the country.
"Faced with the enormous addiction caused by nicotine and the effects of combustion, it is very clear that it would be best if people do not smoke or use any type of cigarette or similar system, but reality clearly shows another thing ", expresses strictly personal, Oscar Mendiz, Director of the Cardiology and Cardiovascular Surgery Institute (ICyCC) and Head of the Department of Interventional Cardiology at the Favaloro Foundation University Hospital.
In Argentina, the tobacco companies have already started with the "seduction operation": they are preparing the ground and are waiting for a prompt fumatta bianca that will allow them to expand their market with new consumption options, which combine technology and science to try to reduce damages.
"Europe is clear about the difference and the product is communicated within that framework, but in Argentina it does not advance," affirms iProUP Matías O'Farrel, vice president of Massalin Particulares and director of Corporate Affairs for the southern cluster of Philip Morris International ( PMI), the largest tobacco company in the world.
At this point, he points out that "the investment in science is to be able to demonstrate all this, although the regulation has not yet changed, at some point the debate will have to be given". Then he warns: "If society accepts that it is less harmful, it should not have the same restrictions as a common cigarette."
Outside the country, the tobacco companies have been going through a huge reconversion of their business. In the next five years, the company projects that 30% of its sales will come from its "product 4.0".
"As a company, we are going through a strong internal transformation, from a tobacco company to a technology firm serving those who want to continue smoking but with devices that generate less damage to their health," said Enrique Jiménez, CEO of Philip Morris.
This year, its main competitor, British American Tobbaco (BAT), which in Argentina owns the former Nobilza Picardo, partnered with McLaren Applied Technologies to accelerate its transformation agenda for the firm.
"To continue with our evolution as a company, we need to be at the threshold of technology, our commitment is to provide a portfolio of products with potentially reduced risks (PRRP), indicates to iProUP Santiago Pezzati, director of Legal and External Affairs for Argentina of BAT .
And complete: "The idea is that both share the best practices, processes, innovation, specialized technical knowledge and mutual experience." According to Mendiz, "if someone is not going to stop smoking, it would be preferable to use some nicotine delivery system different from the conventional cigarette".
With the aim of reducing the damage, the tobacco companies are betting on a new scenario in which science and technology go hand in hand.
At El Cubo, the Philip Morris research and development center in the Swiss city of Neuchatel has invested 15 years and 4 billion euros in the creation of innovative smoke-free products that have the potential to be less harmful than traditional cigarettes. .
For its part, the main laboratory of BAT is based in Southampton, United Kingdom, and has the support of external collaborators. "We use a wide range of analytical techniques, specialized laboratory technology and experience to test our products," says Pezzati.
Currently, PMI has IQOS as its most advanced smoke free product. The "tech" portfolio is completed by two options that do not contain tobacco but produce steam: one is the electronic cigarette, which heats a liquid that includes nicotine and flavorings; and STEEM, a gadget that generates nicotine salt vapor.
IQOS began to be commercialized in Japan and Italy in 2014. Today it has more than 6.6 million users globally, spread over the 44 countries where it is available. In the case of BAT, there are VYPE and VUSE vapers, GLO tobacco heaters.
"Revenues in heaters are rising at constant rates, our global brand has reached 4.7% market share (20% of the category) in Japan, and continues to rise in South Korea, Romania and Italy," reveals Pezzati, of PMI.
The vapers, meanwhile, grew in the 15 markets where they are present. "The total volume increased 35% in a representative way, with good results in the three largest markets: the United States, the United Kingdom and France," he adds.
While none of these products is legal in Argentina, a study by Euromonitor Consulting indicates that the availability and use of electronic cigarettes is growing at the same pace as in regulated markets, at an annual rate of 37.5% between 2014 and 2017.
A radical change
O'Farrel explains that the supply of these devices began when society was mature to demand from companies certain changes in relation to health and sustainability.
"We had to live up to what the consumer demanded, taking into account that this product is not to stop smoking, it is for the conscious adult who wants to continue smoking with less damage," he warns.
BAT explains that in 2012 they articulated a clear vision that places adult consumers at the center of the strategy. The need to accompany the new demands of the consumer, implied a transformation according to an industry considered "classic".
According to O'Farrel, the number one of the company is the one who decided to go in depth with a global technological transformation that involved its more than 100 thousand employees.
"It was a monoproduct organization without technology, the key was that the CEO was the leader in the new direction, each and every sector was involved, there were clear signs of why the decision was made," explains the executive. .
Likewise, he considers that "a parallel company could have been created with a focus on innovation, but all attention was focused on the total transformation". In this way, what is obtained from the profits of the traditional industry is financed by the future of the company, which are technological products.
Pezzati agrees: "We are in one of the most dynamic periods of change in our history, and the company as a whole is absolutely committed to the transformation."
For the tobacco companies, part of the reconversion process involves the opening of new channels that exceed the kiosks and service stations: in addition to the online channel, they contemplate the opening of stores or corners in shopping centers where potential customers can try and get in touch with the devices.
"Today, consumers are given a device that lasts two years, during which time it breaks, the battery stops running, etc. It is necessary to have an appropriate service center." We have coaching at points of sale that help us understand how the device is used, among other care that must be taken ", adds O'Farrel.
The executives hope that, after the Government approves these devices, progress is made in the creation of this infrastructure tending to evangelize smokers about electronic cigarettes.
The new era of the cigarette is already underway. The world market already understood and advanced the necessary measures so that new forms of consumption are properly regulated.
In Argentina, the tobacco companies wait. While in the streets more vapeadores are visualized, they prepare the land so that, once given the awaited governmental endorsement, they can disembark with force in this multimillionaire business.
