Economic news in the ticker – Credit Suisse hides US assets, according to ex-bankers | Phillip Morris is investing 3 billion in Switzerland
The tobacco giant Phillip Morris International (PMI), which intends to withdraw completely from the cigarette business in the long term, has considerable shares in Switzerland. Last year alone, the US group invested around 3.6 billion US dollars in this country, or the equivalent of a good 3.3 billion Swiss francs.
The billions of Americans have gone into research and development (R&D), salaries, the purchase of goods and services and invested in the factory in Neuchâtel, as Dominique Leroux explained in an interview with the AWP news agency. Leroux is the head of the Swiss subsidiary of the group.
420 million invested in research
“Research and development spending alone last year totaled $ 420 million,” Leroux said, pointing out that almost everything went into smoke-free alternatives, the new niche in which Philip Morris wanted to distinguish himself. The Iqos brand e-cigarettes are an important part of this.
Business with Iqos is growing in Switzerland: Iqos’ market share in the third quarter was 5.7 percent of tobacco products including cigarettes, which corresponds to an increase of 1.9 percentage points (PP) compared to the same period in 2020.
Delivery problems with semiconductors
But there are also problems. Like other electronic devices, Iqos is having difficulty sourcing semiconductors. The “tense situation” is likely to last until the first half of 2022, but the aim is to prioritize replacement products for existing customers “primarily to prevent a return to smoking”, explained the Swiss boss. A price increase is currently not planned for the Swiss market. (SDA)
On the subject
There are currently production downtimes and delivery difficulties around the world. The reason for this are corona outbreaks in factories and shipping ports, causing production and distribution to come to a standstill. A shortage of raw materials in industry and increased global demand also push prices up.
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