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The news is well hidden in Philip Morris’ newsletter. “We inform you that Iqos and Heets are currently not available in their stores due to an unfortunate decision by Denner and Migrolino.”
This means in simple words: the two dealers have canceled the hope of the Philip Morris group. The background is a price tug-of-war. CH Media newspapers report the case.
Iqos is an electronic cigarette. A steamer. The product heats the tobacco to 300 degrees, but does not burn it. There is neither smoke nor ash. Just steam and data. A chip stores details about device usage, battery consumption, and number of buffers.
Agreement with Denner
To sell the product, Philip Morris relies on its own Apple-style stores. Kiosks and dealers also sell the steamer. In Denner, however, Iqos was no longer available at short notice. From Migrolino the article “until further notice” is no longer available. The reason is “commercial disagreements”, as Philip Morris notes. In other words: a tough fight for buying and selling prices.
Such negotiations are part of the daily business in the retail trade. If, for example, a commodity such as tobacco becomes more expensive, the manufacturer asks the retailer to also sell the tobacco product in the shop at a higher price. On the contrary, retailers want to offer their customers the lowest possible price.
Such price negotiations are more frequent in the fall, as the annual talks take place. It is not clear what the IQOS negotiations are in detail. (ise)
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