Sampoerna Announces Its Latest Science and Technology-based Innovation for Smoke-Free Products
Continuation of IQOS Club with targeted launch of IQOS ILUMA in 10 cities in Indonesia
Jakarta, February 20, 2023 – PT HM Sampoerna Tbk. (“Sampoerna” or the “Company”) announced a decision to introduce the latest science-based innovation with the most advanced technology for smoke-free tobacco products, the IQOS ILUMA, through the continuation of IQOS Club with a targeted launch in major cities in Indonesia. The innovation developed by Sampoerna’s parent company, Philip Morris International (PMI), was announced during the Company’s Public Expose in Jakarta, Monday (20/2/2023).
President Director of Sampoerna, Vassilis Gkatzelis shared information about the company’s latest innovation, “IQOS ILUMA is our most innovative and the new flagship in our portfolio of science-backed, smoke-free products to date. Indonesia is the first country to launch IQOS ILUMA in Southeast Asia. We believe adult smokers who choose to continue using tobacco products should have access to innovations and the latest technology for better alternatives to cigarettes.”
IQOS ILUMA heats tobacco sticks, using real tobacco leaves, without combustion. Like previous IQOS devices, IQOS ILUMA emits on average 90-95% lower levels of harmful and potentially harmful chemicals compared to cigarettes. Without burning, IQOS ILUMA produces no fire, ash, or smoke.
The latest technological breakthrough in IQOS ILUMA is the SMARTCORE INDUCTION SYSTEM™ that heats tobacco without a heating blade featured in previous generations of IQOS. Thus, it provides improved consistency with no tobacco residue and no need to clean. IQOS ILUMA is to be used exclusively with tobacco sticks under the TEREA SMARTCORE STICKS™ brand. “Our latest innovation exemplifies Sampoerna and PMI’s commitment to scientific research and development to continuously transform and innovate in developing a range of innovative smoke-free product portfolios, including IQOS,” said Vassilis.
Currently, PMI's smoke-free products are available for sale in 73 markets, and PMI estimates that approximately 17.8 million adults worldwide had already switched to IQOS and stopped smoking. In Indonesia, IQOS was previously introduced through limited market testing since 2019 and is available in 10 major cities in Indonesia, Jakarta, Surabaya, Denpasar, Bandung, Medan, Pekanbaru, Palembang, Makassar, Balikpapan, and Samarinda.
Vassilis continued, “With this targeted launch, we are introducing three types of devices to provide options for adult consumers according to their needs and preferences, namely IQOS ILUMA, IQOS ILUMA ONE, and IQOS ILUMA PRIME. IQOS ILUMA devices are to be used exclusively with TEREA SMARTCORE STICKS™ tobacco sticks that come in 9 variants, all of which are already available in IQOS booths and kiosks, as well as on IQOS.com.”
With 110 years of presence, Sampoerna is one of the major employers and investors with a sizeable footprint across the value chain, as well as continuous investments in Indonesia for long-term value creation in the broader ecosystem. Sampoerna employs more than 65,800 direct and indirect employees and operates 45 production facilities with 7 directly operated factories, including the newly inaugurated smoke-free products factory in Karawang and 38 indirect Third-Party Operators that are owned by local businesses and cooperatives located in 28 cities and regencies across Java.
“Sampoerna is always committed to creating long-term value for our key stakeholders. However, we can only achieve our purpose by embedding sustainability in all we do. Accordingly, we work hard to integrate sustainability into every aspect of our business and activities. And being part of Philip Morris International (PMI), we leverage global best practices, know-how, and world-class systems,” Vassilis said.
As a part of its business transformation journey, since 2008, PMI has invested more than USD 10.5 billion in the development, scientific substantiation, manufacturing, commercialization, and continuous innovation of smoke-free products. This is supported by more than 980 scientists, engineers, technicians, and support staff, including those from Indonesia.
Vassilis highlighted that innovative smoke-free tobacco products contain nicotine, and while nicotine may cause addiction, it is not the primary cause of smoking-related diseases. “If you don’t smoke, don’t start. If you smoke, quit. But, if you choose not to quit, then change to better alternatives. Remember, smoke-free products are not risk-free, and these are specifically intended for adult smokers who decided to continue using tobacco or other nicotine products,” concluded Vassilis.
About PT HM Sampoerna Tbk. (Sampoerna)
Established in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is a leading tobacco company in Indonesia. Sampoerna owns and operates six factories located in Surabaya, Pasuruan, Probolinggo, Malang, and Karawang. The Company establishes partnerships with 38 Third-Party Operators (TPOs) in Java – with a total workforce of around 66,000 direct and indirect employees, mostly in the production of hand-rolled clove cigarettes. It has a total of 110 zone branch offices, sales offices, and distribution centers, as well as 25 third-party Exclusive Zonified Distributors (EZD) throughout Indonesia.
Sampoerna is one of the largest companies by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol “HMSP”.
Head of Corporate Communications
PT HM Sampoerna Tbk.