Our premise

Meaningful tobacco harm reduction will require substantial investment for the development of less hazardous products that appeal to the majority of smokers. 

Investment decisions are based on the anticipated value creation for shareholders, as reflected by the subsequent change in the value of the enterprise.

A confluence of circumstances has created an environment conducive to accelerated harm reduction, albeit not without challenges.

  • The independent vaping industry has succeeded in developing products with demonstrable success in converting a meaningful proportion of smokers in several markets. Sadly, misinformation about the health risk associated with vaping, an increased regulatory burden and a fragmented competitive landscape has substantially raised the return required by investors. This has reduced access to funding crucial for the development of products that appeal to a broader group of smokers.
  • Sustained combustible tobacco volume declines over the past decade has provided incremental motivation for the tobacco industry to significantly increase investment in less harmful alternatives, with some notable successes. Investors, though,  remain seemingly unconvinced that these alternatives will generate sufficient profits to offset the long-term decline in industry volumes.
  • There exists significant potential to shift the mindsets of regulators through the work of a growing body of respected harm reduction experts and organisations like The Foundation for a Smoke-Free World.  To date, progress has been slow, albeit with some notable exceptions. 

We have tailored our services to contribute to the development of an environment favourable for the investment needed to accelerate tobacco harm reduction.