Beneath Vassilis Gkatzelis’ understated appearance lies a wealth of expertise, honed over two decades at Philip Morris International (PMI), where he has been a driving force behind transformative change.
With a mission to transform the region into a model for smoke-free living, the PMI East Asia, Australia and Duty-Free president is fuelled by an ambitious vision to accelerate the decline of smoking and contribute to a world without cigarettes.
Since taking on his current role in May, Gkatzelis has remained laser-focused on increasing the share of smoke-free products in PMI’s portfolio, striving for 100% conversion.
Growing up in a family business in his native city of Athens, Greece, Gkatzelis was exposed early on to the importance of making meaningful contributions to society.
Today, he views phasing out cigarettes as the most impactful legacy PMI can leave for public health and society.
“Over 60% of PMI’s net revenues in this region come from cigarette alternatives, such as IQOS, our heated tobacco product. My aim is not only to expand this market share but to bring countries closer to smoke-free status,” Gkatzelis says.
He adds that achieving this goal requires more than just innovation – it demands collaboration.
Gkatzelis emphasises the need for partnerships with regulators, governments, civil society, and the media to drive this transition.
“The World Health Organization reports that there are one billion smokers globally, with no projected decrease in this number by 2025. The urgency for collective action has never been greater,” he says.
To carry out his mission, Gkatzelis adopts a leadership style that is inclusive, engaging diverse stakeholders both inside and outside the company to tackle complex challenges like smoking cessation and sustainability.
Yet, he balances collaboration with decisive action, ensuring the swift implementation of impactful solutions.
“At PMI, culture plays a pivotal role in transformation. We champion three core values: care, collaboration, and innovation.
“These principles guide my personal KPIs to accelerate the decline of smoking and ultimately end cigarette sales,” he shares.
Navigating challenges, driving growth
PMI has established IQOS as the global leader in smoke-free alternatives, surpassing even Marlboro in net revenues just 10 years after its launch, highlighting the strategy’s success and potential.
“Globally, we have around 36.5 million adult users of our smoke-free products, including IQOS and other heat-not-burn alternatives. With over one billion adult smokers worldwide, the opportunity for growth is immense,” says Gkatzelis.
IQOS has already been embraced by 30.8 million users, with 72% of them having fully transitioned away from cigarettes.
“This highlights the significant potential for replacing cigarettes with smoke-free alternatives like IQOS, benefiting both our shareholders and public health,” Gkatzelis adds.
Despite strong demand in the region, challenges remain.
Gkatzelis notes that regulatory inconsistencies across markets hinder progress, while illicit trade undermines legitimate businesses, governments, and consumers.
“While demand exists, regulations need to evolve. We’re in constant dialogue with stakeholders to tackle illicit trade.
“Illicit trade, often linked to organised crime, harms everyone – governments lose tax revenues, and adult consumers and legitimate businesses suffer from the lack of regulated access, leading some to resort to the black market,” he explains.
To address these issues, PMI has implemented strategies, among which include raising awareness to encourage quitting or switching to reduced-risk alternatives, advocating for appropriate regulatory frameworks with governments, and expanding its portfolio of alternatives.
Gkatzelis stresses, “If you don’t smoke, don’t start. If you smoke, quit. If you don’t quit, change.”
PMI also continues to expand its market presence, with IQOS achieving notable success, capturing 12.7% of the market in Kuala Lumpur and over 30% in Japan.
“The company operates under strict policies and governance codes, ensuring transparency and adherence to higher standards than local regulations require.
“As a publicly-listed company, PMI is transparent in communicating its mission to phase out cigarettes.
“We are the first major publicly-listed tobacco company to declare this goal.
“Over the past decade, we have successfully transformed from a tobacco manufacturer into a science and technology-driven organisation,” he says.
He adds that PMI is committed to youth prevention and the responsible marketing of its products to adult smokers.
As Gkatzelis leads PMI’s efforts toward a smoke-free future, his work demonstrates how purpose- driven leadership, innovation, and collaboration can address one of the world’s most pressing public health challenges. With the right partnerships and bold action, he believes a world without cigarettes is not only possible, it is inevitable.
