Philip Morris International is pledging to spend $1bn over the next 12 years to eradicate smoking.

The move follows their announcement earlier this year that the company would be aiming for “a smoke-free future”. The $1bn will go to the new charity set up by Philip Morris – Foundation for a Smoke Free Word – the name echoing the marketing line around their new IQOS heat-not-burn e-cigarette.

André Calantzopoulos, CEO of Philip Morris said: “The Foundation is a welcome driver of change, at a time when a smoke-free future is clearly on the horizon. We will welcome its recommendations to accelerate smoker adoption of less harmful alternatives.”

Traditional anti-smoking groups remain cynical, with Deborah Arnott, CEO of Action on Smoking and Health, stating: “Tobacco industry claims can never be accepted at face value.”

Statistics from Booker’s latest financial results show traditional tobacco product sales declined 10% since EUTPD2 and plain packaging came into effect in May.

The declining market, coupled with the growing demand for tobacco alternatives is providing an incentive for retailers and tobacco manufacturers to shift their focus.

Lia Rutter owns three Bargain Booze stores in Macclesfield and supplies a wide range of e-liquids. Rutter told Retail Express: “We’ve had a lot of tobacco customers come in and tell us they want to give up smoking. We always recommend transitioning to vaping as it is good for the customer and good for us as the margins on e-liquids are much higher.”

Helen Rogers from Lifestyle Express Midway agreed. “E-cigarettes are a great product for us, the rep we have lives locally and is always very supportive. With a margin of up to 50% there’s a huge opportunity to be had,” she added.