So what is Taboka?  It’s a smoke-free, spit-free tobacco product that comes in a pouch that we call a Tobaccopak that is tucked in the cheek.  The Tobaccopak contains pasteurized tobacco and features a flavor strip.  It lasts about twice as long as a cigarette and can be enjoyed almost anywhere, anytime.

Our packaging is also designed to appeal to adult smokers with an innovative and sleek SlidePak with its unique slide feature.  In our test market, each pack contains 12 pouches, or Tobaccopaks, and each carton contains five packs.  Inside, the Tobaccopaks are hermetically sealed in foil to keep the flavor fresh.  Unlike snus, Taboka does not require refrigeration.

In the test market, we are reaching out to adult smokers to create awareness, educate them about the product attributes and how to use it, and generate product trial through retail communications, brochures on Taboka and on our cigarette packs, and via direct mail.  Taboka is merchandised on the cigarette rack with a sliding merchandising unit that resembles the SlidePak, slides from side to side, and also holds inventory. 

To reflect our entrance into this new category, we are offering retailers in the test market new signage to promote responsible retailing of all tobacco products, not just cigarettes. 

We are also using the pack itself to provide consumers with the federally required warnings and other smokeless tobacco health information, instructions on how to use the product, product ingredients, and other reminders about responsible use and handling of the product.  We also provide consumers with a range of ways to contact Philip Morris USA to get more information about the product.  At Philipmorrisusa.com, consumers can find more information about Taboka, health issues, preventing youth tobacco use and our responsible marketing practices.

While we will not provide detailed information about our test market for competitive reasons and because it is too early, I can tell you that we are pleased with the strong distribution we have achieved in more than 2,000 retail stores across Indianapolis and the initial response to Taboka from adult consumers who have tried it in the marketplace.