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Philip Morris subsidiary in Canada sees name of retail store go up in smoke - CoStar

By Garry Marr

Health Canada Rules IQOS Brand Cannot Be Used

Health Canada has butted into the opening of the flagship store for a Rothmans, Benson & Hedges Inc.'s stand-alone store to be named after its smokeless cigarette known as IQOS.

The federal government told the company shortly before the launch of the store at the West Edmonton Mall , the largest shopping centre in North America at 5.3 million square feet, that the subsidiary of Philip Morris Companies cannot have any stores named after IQOS -- a decision that not only affects the flagship store scheduled to open on Black Friday but four other locations.

"It was supposed to be IQOS, the electronic device that heats tobacco instead of burning it but we got a letter saying we couldn't use the name of the device for the store name," said Peter, Luongo, managing director of Rothmans, Benson & Hedges Inc. "We will open the store with no name for the time being."

The latest opening is part of an international growth strategy and marks the first mall location in Canada. The company began opening street-front stores in May 2017, filling spaces averaging 1,100 square feet in Toronto, Vancouver, and Calgary

"The ongoing expansion is part of Philip Morris International’s goal to replace cigarettes with smoke-free products. Due to the Tobacco and Vaping Products Act, branded signage on the store’s façade is strictly prohibited," the company said, in a release.

Luongo said the name of the store will still be in the mall directory and customers will be able to look inside and see the products being sold.

"It's a bit frustrating. We are selling a product we feel smokers will switch to," Luongo said. "We now can't put the name of the product on the store."

The company said it will now consider new branding for the stores. Luongo wouldn't say how many stores the company wants to open.

"We are looking at the opening in West Edmonton for what a true store will look like," Luongo said, adding that the naming restrictions are ironic considering how much leeway cannabis stores are being given in some provinces since recreational use was legalized across the country.