Emmanuel Babeau: Hi Pams.
Jacek Olczak: Good morning, Pam.
Pamela Kaufman: Can you discuss your strategy for the U.S. market this year for Swedish Match and what you – what your key priorities are? And then what are your plans for the international rollout of ZYN and the timeline?
Jacek Olczak: So obviously, you know the focus is to continue and enhance the spectacular momentum of pouches, ZYN growth in the U.S. I mentioned this before answering another question that part of the investments we are allocating to U.S., I believe also will benefit the current business of Swedish Match. I think, there should be a bigger, better pricing, especially on the cigar business, although it is not really our strategic focus, but still obviously helps the overall business performance. And the strategy in terms of long-term, the big question obviously is how we will approach IQOS commercialization, the moment when we fully take it back in that in 2024. And we know what sort of actually capabilities are missing at the Swedish Match level.
So we adding them. But the real big commercial spend, I mean, it will depend on the timing and the dense and the intensity of our rollout plans, which we will share, I guess, around September, during the Investors – September this year, around the Investors Day. When it comes to the pouches, on international, I think Swedish Match and us now together have a plans, how to start addressing some share pressure especially in the Nordics, okay but on the bigger international scale, we have quite a few markets, which we will start rolling out the pouches this year but for obvious reasons, I will not mention which markets. But that was the whole purpose of acquisition of Swedish Match, as you recall, leveraged the base and our growth opportunity in the U.S., is the – is a huge relief in a sense of preparedness for IQOS but also I believe the category has the – quite a potential in there or in the regions of this product space on international basis.
We will have infrastructure in most of the markets, it’s – I’m not releasing really – disclosing any strategic confidential matters, obviously IQOS is present in 70 plus markets. This is where the developed infrastructure is most developed and very likely, the markets for ZYN products will be – which in the list of this markets.
Pamela Kaufman: Thanks. And then can you just talk about your strategy with the bonds product that you launched in test markets and what your early observations are and then how are you thinking about a broader rollout over time?
Jacek Olczak: Yes. I mean it’s a broader rollout of the bonds is more the – we’ve more strategically planned for the 2024, so the next year. We will have some volume, but nothing compared to be very frank to what we have about the IQOS and ILUMA product. This is by far the prime focus. But I think, the early results, which we get from the Philippines and Colombia, I mean, they are very strong, actually they are very strong, obviously our expectations after a seven or so years of experience with IQOS products are much higher than we ever had. So BONDS have to come and meet that expectations as well. The proposition essentially, we knew that the moment when we will be going more into the emerging markets, lower-income, when the afford – consumer affordability might be at a bottleneck in achieving our smoke-free ambitions.
