Papastratos: Science and data lead our corporate transformation

Papastratos is strengthening its position as an international reference center for the production of innovative tobacco products, but also as an export hub, implementing a new investment of 125 million euros. As the Vice President of Papastratos, Iakovos Kargarotos, says in an interview with “Forbes”, the new investment will create 115 new jobs in the company, creating multiplier benefits.

Interview with George Lampiris

– After the significant investment you completed in 2018, amounting to 300 million euros, while stopping the production of cigarettes in Greece and focusing exclusively on the production of heated tobacco rods, you are currently in the implementation phase of another investment, 125 million euros, to add a new production line. What will this move offer the company in terms of production, as well as in the field of exports of heated bars?

The new investment of 125 million euros comes to boost our production capacity, putting Papastratos even deeper in the world of technology and innovation. What practically changes in our factory? Just three years after their installation, we are modernizing the existing production lines of heated tobacco rods and adding two more new ones, as well as a line for the production of filters. At the same time, we are completely changing our Lithography. We transform it, we digitize it by installing two new lines of digital printing.
Papastratos’s position, as an international reference center for the production of innovative tobacco products, but also as an export hub, is strengthening. At the same time, another step is being taken towards something bigger. Towards a future in which cigarettes will be a thing of the past. Let me add one more thing. We are talking about state-of-the-art equipment, digital transformation, and it is easy to imagine that technology is replacing man. But the opposite happens. The new investment brings with it 115 new jobs, 115 new colleagues, many of whom we have already welcomed into our large family.

– Tell us, if you want, about alternative tobacco products. How is this market evolving? What stage is it at right now?

First, we observe that the overall nicotine market in Greece is declining. Something that is the right thing to do. Many smokers quit or reduce their smoking. Others, who can not or do not want to, turn to alternative products, e-cigarettes and heated tobacco products. This market is growing through the innovative products developed by our parent company, Philip Morris International, as well as other companies. I do not call them “competition” products, because we do not see the market conventionally. Any company that invests and develops alternative products, better than cigarettes, can only be our ally.

For our part, we continue to enrich our product portfolio and aim to reduce the number of smokers in Greece by 1.5 million by 2025, either by discontinuing it or turning to alternative, better products.

– You recently presented the steps you are taking to strengthen the work of state authorities to curb cigarette smuggling. Would you like to tell us about them?

Cigarettes are a major social problem. An equally major social problem is the illicit cigarette, the effects of which are not limited to those who smoke it. It seriously affects the economy and threatens the security of society. The illicit cigarette trade is a major source of funding for criminal organizations and networks, depriving hundreds of millions of euros in public coffers each year. In 2020 alone, in a year of pandemic, 3.1 billion illegal cigarettes were consumed in our country and the revenue losses exceeded 500 million euros.

We do not live in Papastratos in the findings. Since 2012 we have allocated more than 6 million euros in actions to strengthen the authorities in the fight against smuggling. This year we took another step. In collaboration with the Ministries of Finance, Citizen Protection, Shipping and Island Policy, we launched a new information and awareness campaign for our fellow citizens with the central message “Together, we extinguish the illegal cigarette”. Combating the illicit trade in cigarettes is an integral part of our new Sustainable Development strategy. In this direction, we will commit resources by 2025 amounting to 1 million euros.

– What are the current steps you are implementing in the field of sustainable development strategy and which pillars of this strategy are prominent for Papastratos?

This year, 90 years after the start of its operation, Papastratos was “reborn”, implementing an inclusive plan that focuses on Sustainability. Our new Sustainable Development Strategy has 5 pillars: 1) the innovation of our products, 2) our exemplary and responsible operation towards everyone, 3) the support of our people, employees and partners, 4) the protection of the Environment and 5 ) strengthening society.

It is a public, transparent and binding plan, with clear and measurable goals. For us, the new strategy is the roadmap that will lead us – not in general to tomorrow – but to a better future, for as many as possible.

Already, as part of this project, we have taken initiatives in many areas, such as the Environment. The first took place in Halki, the first island to participate in the GReco – Island program, being a model of green growth and energy transition. We donated the first electric boat to the community of Halki. A few weeks ago we implemented a second initiative. This is a comprehensive reforestation program, which aims to breathe new life into the natural environment of fire-affected areas in Attica. It concerns the planting of 70,000 trees by 2023 and their care until 2026.

Sustainability, however, does not only mean the Environment. It means creating conditions for equal, fair development and prosperity in society. Providing equal opportunities to each of our employees is a fundamental principle for Papastratos. This commitment is made every day and Papastratos has been certified as an Equal Salary Employer to provide equal pay and development opportunities to men and women.

– In closing, I would like to ask you a question that does not only concern Papastratos. In a panel you participated in a few days ago, you mentioned the need for valid and documented information to citizens, especially at a time when we are called upon to manage important issues on a global scale. Finally access to valid information is possible and what can we do to facilitate it?

Accurate information is one of the biggest challenges, but also contradictions of our time. Although access to information is easier than ever, validity, reliability and documentation remain in demand. We see it everywhere. Take for example the crisis due to COVID-19. Myths, fake news and misinformation continue to reproduce, like a second pandemic, shaping misconceptions, attitudes and behaviors.

For Papastratos, the path of valid information has only one starting point. The scientific knowledge and data it produces. We relied on it to develop our innovative products. We rely on it today, in our effort to inform responsibly – and always with absolute respect to the regulatory framework that governs our industry – those smokers who do not quit and choose to smoke, about the alternatives that are available, but also about the scientific data accompanying them. A recent study found that 9 out of 10 smokers worldwide who have quit smoking and switched to new, better alternatives attribute their decision to the valid and informed information they have.