Key points:
- The older version of IQOS ($60) is being sold while the ILUMA is under FFA review (heat sticks are $8).
- PMI aims to capture 10% of the combined cigarette and heated tobacco market in the U.S. by 2030.
- The company is leveraging pop-up stores, mobile sales units, and exclusive adult-only venue partnerships to promote the products.
Philip Morris International (PMI) has officially launched its IQOS heated tobacco device in Austin, Texas, following a successful market test. The product, currently priced at $60, is strategically priced lower in Austin compared to other markets to attract new consumers.
The rollout includes pop-up retail locations and mobile stores, with a dedicated downtown Austin store planned to remain open for several months. Additionally, PMI has partnered with approximately 15 adult-only venues, such as bars, where trained “IQOS coaches” will provide product education and demonstrations.
As part of its marketing push, PMI will also feature IQOS at the upcoming MotoGP Red Bull Grand Prix of the Americas in Austin, offering hands-on trials to consumers.
PMI originally planned to introduce IQOS in multiple cities across two states but has so far only confirmed the Austin launch. The company is currently restricted to selling the older IQOS model while awaiting FDA authorization for its latest version, the IQOS ILUMA.
The FDA had previously authorized PMI to sell the earlier IQOS model, citing its potential to reduce smokers’ exposure to harmful chemicals. However, in 2024, a coalition of health advocates urged the FDA to reject PMI’s application for expanded IQOS sales, raising concerns about public health impacts.
