It appears IQOS will make its US debut in Austin, TX. Photo credit: Funnymorphius, CC4.0.
Philip Morris International (PMI) is gearing up to introduce its flagship heated tobacco device IQOS in Austin, TX, as indicated by job advertisements on LinkedIn, reports Reuters. This suggests Austin will serve as the initial testing ground for the company's entry into the US market.
PMI previously announced its intention to introduce the device in four cities across two US states, with the first city targeted for the second quarter, leading up to a more extensive rollout possibly in 2025. While specific details such as the cities or states being targeted were not disclosed, recent job postings on LinkedIn indicate that the company is preparing for the launch of IQOS in Austin. These postings, which include roles like field sales representatives, territory managers, and retail sales advisors, were made this month.
According to Brett Cooper, managing partner and analyst at equity research firm Consumer Edge, Texas offers an intriguing trial market due to its diverse demographics, encompassing super rural areas to highly urban regions. He emphasized that cities like Austin, Houston, and Dallas offer access to a wide array of consumer groups.
Data from the Centers for Disease Control and Prevention (CDC) show that the excise tax rate on a pack of cigarettes in Texas was US$1.41 in September 2023. This rate is significantly higher than the 17 cents in Missouri but notably lower than the more than US$5 per pack in New York, highlighting Texas's relatively low tobacco taxes compared to other states.
PMI believes that IQOS could capture a 10% share of the US tobacco and heated tobacco unit volume by 2030.