We had to also come up with a technology both on a consumables and on the device which somehow adjust the cost of the propositions to the potential pricing we can offer to the market. So obviously, the focus will be on the emerging markets, but I do believe that that proposition also nicely will help in some developed economies because across the spectrum of the smoker’s audience, obviously, they also group of people who, for whom the affordability might create some constraint. So that will be a very nice complement – complementary propositions in our portfolio. And essentially it also help IQOS to continue on its extremely successful history of occupying this premium or medium plus space. This is – this mega brand, which we’re trying to build, while preparing our self that one billion plus smokers in the world, I mean they are going across the different various price segments from the premium, mid, low, super-low et cetera and we need to provide the relevant propositions there.
So I think, bonds is on the track and this is how we are going to play strategically in the portfolio.
Pamela Kaufman: Thank you. That’s very helpful.
Jacek Olczak: Thank you, Pam. Thank you.
Operator: We’ll take our next question from Vivien Azer with Cowen.
Vivien Azer: Thank you, good morning.
Jacek Olczak: Hi Vivien
Vivien Azer: Hi. I was hoping to talk about the IQOS outlook, please, in terms of the stakes and in particular, what impact is the removal of characterizing flavors on HTUs in the EU, impacting your outlook. How are you accounting for that? And what’s the expected timing of that, please. Thank you.
Jacek Olczak: Yes, so I partially answered that question before, Vivien. But the characterizing flavor, we had that – we had an experience with the cigarettes – combustible cigarettes in the past and it’s the only reference point we might – we have today. And as you recall, the menthol and others ban in Europe, didn’t really impact in any material way the volumes of the cigarette, so I think here, one can expect a similar sort of a manageable impact if you like of that ban. The second thing, it’s very – but also reminding everyone that IQOS by far today is the best tobacco flavor proposition. Yes, there are some flavors, which we have in our portfolio, in the market , that propulsions might be different, but by far, IQOS on the pure tobacco flavor and this is by the way, were the bulk of the cigarette market, the rest in essentially all geographies.
I mean this is an IQOS strength, so there was a portion of a portfolio, which will be impacted. But and I think for the vast majority of the smokers existing of sorry existing comparative to IQOS users and the smokers, which are still on a combustible, I mean IQOS still offers to date best in class taste and a flavor experience which is in the core of the tobacco flavor.
Vivien Azer: Thank you for that. And I apologize if I missed this, but is there any way that you can provide an update on kind of the infrastructure build-out for IQOS in the U.S. ahead of your reacquiring the commercial rights to that proposition, both in terms of the consumables as well as the devices? Thank you.
