Tobacco Asia

48 tobaccoasia / Issue 1, 2017 March / April PMI IMPACT-a Global Initiative Against Illicit Trade In 2016, Philip Morris International launched a major new global initiative called PMI IMPACT, which en- ables innovation in three key areas concerning the fight against illicit trade and related crimes: research, education and awareness, and action. PMI pledged a generous US$100 million to fund projects during the initiative's first three funding rounds. The unique pro- gram is testimony to PMI's continued commitment to lead public-private partnerships and foster cooperation across the industry, public organizations, law enforce- ment agencies, private entities and civil society. At the heart of PMI IMPACT stands a council of independent experts that evaluates project proposals, selects applications for the award of grants by PMI, and reviews the progress and the results of the proj- ects during their implementation. Council members are recruited from the fields of law, from anti-corruption bodies, and from entities tasked with the fight against organized crime and illegal trade. "We are very excited about the potential this unique initiative has in finding solutions to combat criminal activities, and we will be making a series of announcements on the selected projects as well as a second round of funding later in the year," commented Richard Clemente of Philip Mor- ris Asia Limited. More information on the initiative can be found on the website http://www.pmi-impact.com/. Eradicating Illicit Tobacco: A Costly Endeavor Combatting the trade in illicit tobacco products of any description is a tremendous ef- fort in terms of human resources, financial commitment and organization. Like all its competitors, Philip Morris International has "a strong and vested interest in seeing the illegal tobacco trade eradicated," according to Richard Clemente. The company invests significant resources to ensure strong controls in the supply chain, raise awareness of the dangers of illicit trade, enhance knowledge of the issue, develop possible solutions, as well as support the authorities in tracking down, confiscating, and destroying illegal products. "We have invested $150 million in pack authentication, have trained over 11,000 law enforcement officers and employ more than 100 full-time staff dedicated to combatting illicit trade. We're also investing in ongoing research and make our findings readily available to governments and other entities like Interpol and the World Cus- toms Organization," Clemente said. Furthermore, since the early 2000s, PMI has also made large-scale investments to guarantee the authenticity of its products in over 600 manufacturing lines located in 50 factories and in 700 supply chain locations across the globe, relying on interoperable technology that enables the constant product move- ment monitoring in more than 120 countries. as base materials either polymer or bio-polymer films, the latter of which are fully biodegradable. Last but not least, the labels provide additional branding space. A step into the future Together with an undisclosed partner, TANNPA- PIER some time ago developed an ingenious, al- most futuristic marketing tool for tobacco compa- nies: QR code tipping! The original idea was that consumers could actually scan the QR code print- ed on the cigarette filter with their smartphone, which would then lead them to web-based mar- keting content or a demographics-gathering site. "But this technology could well also be used in combination with tear tape or clear closure labels for brand protection purposes, as it is very cost- efficient," suggested TANNPAPIER's Schmidt, insinuating that scanning the code could be linked to a data base where the customer could check im- mediately whether the pack of cigarettes they pur- chased was genuine or fake/illicit. While the idea of using a QR code on tear tapes and closure labels is certainly intriguing, some- thing into that general direction is already being offered by a Swiss company specializing in brand protection, authentication, serialization and track & tracing solutions. Lausanne-based Inexto S.A's systems are used by many international brands across a range of industries, including many ciga- rette manufacturers. Described as a cost-effective open source system, it can be used by relevant stakeholders in the supply chain and across dif- ferent technological platforms to prevent product diversion. A digital code is printed directly onto the pack in the factory, providing comprehensive tracking, tracing and authentication functional- ities. This code also provides information to law enforcement and tax authorities. And because it is an open source system, even consumers are able to check whether their product is genuine and from where it originated. If they so wish. Tear tape manufac- tured by TANNPAPIER Bird's-eye view of the TANNPAPIER premises in Traun, Austria courtesy of TANNPAPIER GmbH courtesy of TANNPAPIER GmbH

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