Heat-Not-Burn Could Soon Disrupt the Massive $800 Billion Cigarette Market

At the moment, there are about 1.3 billion smokers all over the world. Combined, they’re puffing away at about 5.7 trillion cigarettes a year, generating about $800 billion in yearly revenue for tobacco companies. Sure, many want to give up the habit, but it’s the toughest of tasks. In 2018, just in the U.S., about 55% of adult smokers attempted to give up the habit. But only 8% were successful in quitting for about six to 12 months, according to the US FDA. All thanks to the nicotine. That’s why smokers are now turning to heat not burn (HNB) to consume tobacco – with Phillip Morris (NYSE:PM) saying HNB products could entirely replace traditional cigarettes. Other top companies to keep an eye on include Poda Lifestyle and Wellness Ltd. (CSE:PODA)(OTC:PODAF), RLX Technology Inc. (NYSE:RLX), Universal Corporation (NYSE:UVV), and Vector Group Ltd. (NYSE:VGR).

Better, HNB is one of the fastest growing category in the adult smoking industry. Two, HNB is a new way of consuming tobacco in which the tobacco isn’t burned, but rather is heated to precise temperatures to generate nicotine-containing aerosols without the smoke. Three, Philip Morris International, one of the largest tobacco companies in the world, is leading the HNB market with their IQOS product, and virtually every major player in the tobacco industry is racing to catch up with them. Four, with its HNB technology, Poda is well positioned to gain significant market share in the rapidly expanding global HNB market.

Poda Lifestyle and Wellness Ltd. (CSE:PODA)(OTC:PODAF) Receives Order for 500,000 Pods

Poda Lifestyle and Wellness Ltd. just announced it has received an order for 500,000 Beyond Burn™ Poda Pods. The customer is currently finalizing the packaging designs and equipment, and it is anticipated that the inventory will be used for initial launches of the Poda products into the European market in Q4 2021. In conjunction with the Purchase Order, 2,000 units of Poda's flagship Beyond Burn™ Heating Devices have also been ordered.

Mr. Ryan Selby, CEO, commented, "The Poda team has spent the last six years developing what I believe is the best heat-not-burn product ever made, and we are now rapidly moving forward with the global commercialization of our products. This Purchase Order represents the first large sale of Poda's Beyond Burn™ products and is a tremendous milestone for us. The 500,000 Beyond Burn™ Poda Pods for this Purchase Order have already been produced using our pilot production facility and will be delivered to the customer in the coming weeks. We currently have the capacity to produce up to 400,000 Beyond Burn™ Poda Pods per month, giving us the ability to supply products to the customer on an ongoing basis.”

“Importantly, we are currently making significant investments towards major increases in our production capacities, and we look forward to greatly increased sales volumes of our products as our large-scale production capacities (anticipated to initially be capable of producing over 10,000,000 Beyond Burn™ Poda Pods per month) are brought online in the coming months. Based on demand, these capacity increases should allow Poda to generate substantial revenues from the global sales of our innovative and proprietary products."

Other related developments from around the markets include:

Phillip Morris announced, “We remain on-track for an excellent performance in 2021, underpinned by better combustible volumes and continued strong demand for IQOS,” said Jacek Olczak, CEO. “We are today reaffirming our full-year EPS forecast and now expect to be toward the upper end of our 12% to 14% organic growth range. While the increased impact of the global semiconductor shortage is currently limiting our ability to realize the full potential of IQOS, the underlying momentum of the brand is clear – as evidenced by the positive early results for IQOS ILUMA in Japan following the launch last month.”

RLX Technology Inc.,a leading branded e-vapor company in China, announced its unaudited financial results for the second quarter ended June 30, 2021. Net revenues were RMB2,541.4 million (US$393.6 million), representing an increase of 6.0% from RMB2,398.5 million in the first quarter of 2021. Gross margin was 45.1%, compared to 46.0% in the first quarter of 2021. U.S. GAAP net income was RMB824.3 million (US$127.7 million), compared with U.S. GAAP net loss of RMB267.0 million in the first quarter of 2021. Non-GAAP net income was RMB651.8 million (US$100.9 million), representing an increase of 6.8% from RMB610.5 million in the first quarter of 2021.

Universal Corporation’s George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), announced that the Company's Board of Directors declared a quarterly dividend of seventy-eight cents ($0.78) per share on the common shares of the Company, payable November 1, 2021, to common shareholders of record at the close of business on October 11, 2021.  

Vector Group Ltd. announced that its Board of Directors has declared a regular quarterly cash dividend on its common stock of $0.20 per share. The quarterly cash dividend will be payable on September 29, 2021 to holders of record as of September 15, 2021.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Poda Lifestyle and Wellness Ltd. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares Poda Lifestyle and Wellness Ltd. Please click here for full disclaimer.

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