PMI: An Empire Built on Addiction, an Economy Held Hostage

Philip Morris International is not just a company—it’s a colossal, globe-spanning entity with 82,000 employees and operations in over 180 countries. It is the quintessential behemoth, towering over the nicotine industry as a modern-day titan of addiction. But therein lies the paradox: PMI’s survival, along with the livelihoods of its massive workforce and the ripple effects on global economies, depends entirely on one simple, inescapable fact—keeping humanity hooked on nicotine.

The question is, how a company of this size can exist without perpetuating the very addiction that sustains it. Curbing its dominance, would be economically earth-shattering—yet morally imperative. This is the conundrum of a world caught in the grip of a nicotine empire.

Addiction as an Economic Engine

PMI’s business is addiction, plain and simple. Nicotine, the psychoactive substance found in tobacco products, is the lifeblood of its operations.

"PMI fighting cigarettes with new nicotine gadgets is like a pyromaniac selling fireproof blankets—they caused the blaze, and now they profit from containing it. #genius " ?? ??

A workforce dependent on addiction, With 82,000 employees globally, PMI is a significant employer, particularly in developing economies where its supply chain spans tobacco farms, factories, and distribution centers. Entire communities in tobacco-growing regions rely on PMI for their livelihood, creating a socio-economic dependency that makes any transition away from tobacco production politically and economically fraught

A revenue stream built on dependence, PMI reported $31.7 billion in net revenues in 2023, the majority of which comes from nicotine products. This revenue supports shareholders, governments (through taxes), and its workforce. Nicotine addiction ensures a steady stream of repeat customers. The average smoker or nicotine user spends thousands of dollars annually on PMI products, creating a consumer base that is both captive and lucrative. I'm a smoker and I think being in a less taxed region, I spend about $2,000 on nicotine products. Someone in Brazil (cheapest) would spend about $700 on cigarettes, and $11,000 for someone in Australia (most expensive).

But with the new HNB devices, they can standardize the pricing based on just the nicotine. Genius, again.

In many countries, tobacco taxes are a substantial source of government revenue. PMI’s products generate billions in tax dollars annually, which fund public services even as the health consequences of nicotine addiction strain healthcare systems. Governments face a perverse incentive: curbing tobacco use could reduce healthcare costs, but it would also shrink tax revenues, making PMI’s existence economically convenient.

China: $117.88 billion, Japan: $19 billion Germany: $15.73 billion France: $15.29 billion United Kingdom: $12.38 billion United States: $10.3 billion.

With declining smoking rates in some regions, PMI is aggressively expanding into alternatives like Heat-Not-Burn devices (IQOS) and snus, ensuring the company can continue to thrive by addicting non-smokers or recapturing ex-smokers.

PMI’s Survival Strategy: Addicting Every Human

Given the sheer enormity of its business, PMI’s sole pathway to survival is to expand addiction. The company is no longer content with traditional cigarette smokers; its target is now every single human being, whether they’ve smoked before or not. Here’s a logical plan as to how to achieve this:

Hooking Non-Smokers: By marketing products like IQOS and snus as "reduced risk," PMI is normalizing nicotine use for non-smokers. Slick designs, flavors, and tech-driven marketing appeal to younger demographics, ensuring a new generation of users. The goal is to make nicotine use ubiquitous, even among those who would never consider smoking a ciggarette.

Rebranding Addiction: PMI’s "smoke-free future" narrative is a masterstroke of marketing, allowing the company to shift public perception from being a purveyor of death to an innovator in harm reduction. This rebranding masks the reality that PMI is still selling the same addictive drug—it’s just delivering it in new, more socially acceptable ways.

Global Expansion: As smoking rates decline in developed countries, PMI is doubling down on emerging markets in Asia, Africa, and Latin America, where regulations are lax and smoking rates remain high. In these regions, PMI’s products are not just a luxury—they’re a cultural staple, ensuring long-term addiction cycles; and,

Nicotine as a Lifestyle: By integrating nicotine use into everyday life through sleek, tech-driven devices like IQOS, PMI is transforming addiction into a lifestyle choice. The company isn’t selling a product—it’s selling an identity - wow!

Case for prolonged advocacy: The Marketing Battle with F1

As an example, PMI’s relentless efforts to keep Marlboro in Formula 1 underscore the company’s commitment to maintaining nicotine addiction as a cultural and aspirational symbol. After the Ban of the actual Marlboro logo, Philip Morris International fought to put in an apparent colored barcode that did not look like the Marlboro logo - while stationary, but subliminally projected the visual of the Marlboro logo while in fast motion (blur) - Genius, I have to say from a creative and technical perspective.

After the Wall Street Journal put out an article, Anne Edwards the Director of communications at PMI at the time, had this to say "We started getting calls after your article on the barcode design… and we have decided to withdraw it to put an end to the story," (Source: WSJ)

Formula 1 is a global sport with a diverse audience, including millions of young, impressionable fans. PMI’s presence in the sport, even indirectly, represents a strategic attempt to align its products with prestige, success, and high performance—all attributes designed to attract and retain users.

This fight isn’t just about keeping a logo on a car. It’s about the survival of a brand and an industry that depends on embedding itself in the cultural consciousness. Marlboro’s association with F1 has allowed PMI to stay relevant, even as the world moves away from traditional cigarettes. The shift to alternative products like IQOS and snus mirrors the same strategy: adapt to survive, but never lose the addiction.

A World Without PMI

Imagine a scenario where PMI suddenly ceases to exist. The consequences, while morally satisfying, would be economically catastrophic;

Mass unemployment, Tens of thousands of employees would lose their jobs, with ripple effects felt across supply chains, from tobacco farmers to logistics workers. Entire communities in tobacco-dependent regions would face economic collapse, particularly in developing countries where alternatives are scarce.

Economic Shockwaves: Governments would lose billions in tax revenue, forcing them to find alternative sources of income or cut public services. Global markets could see disruptions as investors, pension funds, and stakeholders recalibrate after losing a key player in the tobacco industry.

Healthcare Transition Challenges: While a world without PMI would see fewer future health costs tied to smoking-related illnesses, there would be an immediate transition period where millions of nicotine-addicted users seek alternatives—legal or illegal—to satisfy their cravings

The Addiction Economy

PMI is the corporate and legal equivalent of a cartel operating in plain sight, protected by laws, governments, and markets. The difference is that while illegal drugs operate outside the system, PMI is deeply entrenched within it, making it nearly impossible to dismantle without far-reaching consequences.

PMI’s business is addiction, and its survival depends on ensuring that addiction flourishes in every corner of the globe. While its collapse might feel like justice served, the economic fallout would be devastating, illustrating just how deeply entrenched nicotine addiction is in the fabric of global economies.

The real tragedy is that in a world where so much human potential is lost to addiction, PMI thrives because it has managed to monetize human vulnerability. Its vision of a "smoke-free future" isn’t about health or progress—it’s about making sure that, no matter what, nicotine stays in our bloodstream, and dollars stay in PMI’s pockets. For the sake of humanity, we must confront this reality and work toward a future free not just of smoke but of addiction itself.

But I can't quit nicotine burnt or unburnt - so I guess thank you Philip Morris International for keeping on?

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