GQG Partners is pressuring BAT to move its primary listing to New York, according to the Financial Times. The shareholder reportedly believes it “makes no sense” for the cigarette manufacturer to remain on the U.K. stock market.
A BAT spokesperson said that the company does not comment on engagement with shareholders when contacted by Reuters while GQG did not respond to a request for comment on the report.
A U.S. federal judge has thrown out a tobacco industry lawsuit against California’s statewide ban on the sale of flavored tobacco products, reports Law360.
On March 15, Judge Cathy Ann Bencivengo rejected the plaintiffs’ claim that the measure would unfairly discriminate against out-of-state businesses. Bencivengo argued that the contested law applies to sales only; manufacturers are still permitted to manufacture flavored tobacco products in California. Most manufacturers of flavored tobacco products are located outside California.
R.J. Reynolds and other tobacco companies sued California after voters approved the ban in a November referendum, claiming the law violates the federal Tobacco Control Act (TCA) as well as the U.S. Constitution’s commerce clause.
The law was originally passed by the state legislature but didn’t take effect after industry opponents gathered enough signatures to put the issue on the November ballot.
In rejecting the TCA claim, Bencivengo cited a 9th Circuit ruling in March 2022 that upheld a Los Angeles County ban on flavored tobacco products. The tobacco industry lawsuit also doesn’t meet the standards for arguing a state law discriminates against or unduly burdens interstate commerce, she argued.
The court also rejected the tobacco companies’ claim that out-of-state manufacturers of flavored tobacco products would be forced to change their operations to the tune of “tens of billions of dollars” to comply with the law’s new standards for tobacco products, an undue burden on interstate commerce.
California’s flavor ban doesn’t set new standards for the manufacture or marketing of tobacco products that depart from federal regulations, Bencivengo said. And financial losses for the tobacco industry alone are “not excessive enough for the court to find that the ban substantially burdens interstate commerce,” she added, citing the law’s aims to protect public health.
The TCA also gives states the authority to “opt out of the market for flavored tobacco products,” Bencivengo said in the ruling, which does not allow the tobacco companies to file an amended complaint.
Charlotte’s Web Holdings, a supplier of cannabidiol (CBD) hemp extract wellness products, has appointed Jonathan P. Atwood to the company’s board of directors, according to PR Newswire. Atwood is currently the group head of business communications for BAT and is responsible for BAT’s external, internal and corporate brand communications. Atwood was designated as a board nominee by BAT in connection with its November purchase of convertible debenture in Charlotte’s Web.
Atwood held senior management positions at Unilever, most recently leading global supply chain communications. Prior to that, he led sustainability and corporate communications for Unilever North America. Atwood is an advocate of sustainability and has worked closely with B Corps companies.
Charlotte’s Web is the only publicly traded CBD B Corp-certified company.
“We welcome Jonathan as a valuable addition to the board where he can support our international and sustainability ambitions. We look forward to working closely together on our mutually shared interests,” said John Held, chairman of the board of Charlotte’s Web.
Atwood’s appointment brings the total number of directors on the Charlotte’s Web board to six.
Major League Baseball (MLB) players are largely switching from smokeless tobacco products to Zyn nicotine pouches, reports Vaping360.
In 2016, a rule came into effect banning new MLB players from using tobacco products, and many stadiums followed in banning tobacco product use for both viewers and players. Veteran players were allowed to continue using tobacco products, though they had to leave them in the locker room; however, stadiums that banned the products did not offer an exception for players.
Many players have since switched to the tobacco-free Zyn nicotine pouches. Zyn is manufactured by Swedish Match, which was recently bought by Philip Morris International for $16 billion and holds 64.9 percent of the U.S. nicotine pouch volume as of the second quarter of 2022.
Zyn and other nicotine pouches do not fall under the tobacco product rules because they contain no tobacco, and there are no rules against MLB athletes using nicotine products.
The U.S. Congress wants to end a legislative provision that allows manufacturers to claim federal tax deductions for the cost of advertising for e-cigarettes and tobacco products. That includes the ads they buy on the radio.
Senators Jeanne Shaheen and Richard Blumenthal have reintroduced the No Tax Subsidies for E-Cigarette and Tobacco Ads Act (S. 464), which if passed would not make the direct-to-consumer ads illegal but would end the ability for companies to take tax deductions for advertising expenses related to vaping and other tobacco products, according to Insider Radio.
“Tax breaks for tobacco and e-cigarette giants allow the industry to profit from its manipulative marketing,” Blumenthal said. “Our legislation ends these write-offs to protect kids and other consumers from being lured into lifetimes of addiction.”
Radio and television advertising for traditional tobacco products has been banned under federal law since January 1971, and certain other forms of tobacco advertising are restricted under the 1998 Tobacco Master Settlement Agreement. However, none of these restrictions apply to e-cigarettes.
In an update, the U.S. Food and Drug Administration said it has made determinations on more than 99 percent of the nearly 26 million deemed products for which applications were submitted. To date, the agency has authorized 23 new e-cigarette products.
This includes determination on applications for nearly 6.7 million products received by the Sept. 9, 2020, deadline, more than 18 million products received after the Sept. 9 deadline, and applications for nearly 1 million nontobacco nicotine products submitted by May 14, 2022, in accordance with the new federal law passed in April 2022.
Under a federal court order, manufacturers of deemed new tobacco products that were on the market as of the deeming rule’s effective date (Aug. 8, 2016) were required to submit premarket review applications by Sept. 9, 2020.
On Feb. 21, 2023, the FDA issued a refuse-to-accept (RTA) letter to one applicant notifying the company that their premarket tobacco product applications, which are associated with approximately 17 million individual tobacco products, do not meet the acceptance requirements outlined in the FDA’s regulations. The applications were for a grouped submission of e-liquids in varying size, nicotine strength and flavor combinations, each of which was treated as an individual product application according to existing premarket review processes.
During the acceptance phase of application review, the FDA reviews applications to ensure they meet a minimum threshold for acceptability for FDA scientific review. If required contents for acceptance are missing, the FDA refuses to accept the application. This company was issued an RTA letter because the company’s applications for these products lacked required environmental assessments. The company may submit a new application for these products at any time; however, the products may not be marketed unless the FDA reviews the applications and determines that marketing of the products is appropriate for the protection of the public health.
The latest updates on actions taken on these applications can be viewed on the FDA’s tobacco products marketing orders page.
Registration is open for U.S. Food and Drug Administration’s upcoming public oral hearing on April 12, 2023, from 9:30 a.m. to 5 p.m.
The hearing is an opportunity for the public to verbally comment on the agency’s proposed rule Requirements for Tobacco Product Manufacturing Practice. The FDA is proposing new requirements for tobacco product manufacturers regarding the manufacture, design, packing and storage of their products. Registration also includes a “listen-only” option for those who want to attend the session but do not want to request to speak.
Speaking spots are limited, and the FDA says it cannot guarantee that it will be able to accommodate all requests. Groups and organizations should select a single spokesperson to help the agency hear as many different perspectives as possible. While speaking spots are limited, listening spots are unlimited. Registration to provide oral comments will close on March 31, 2023.
The oral session will be recorded, and a transcript will be added to the docket of the proposed rule.
Trinidad and Tobago’s High Court has given North American Trading Co. (NATC) permission to challenge a decision by the Ministry of Health to declare its operation in breach of the country’s Tobacco Control Act, reports Trinidad & Tobago Newsday.
In November 2022, authorities raided NATC’s premises in the D’Abadie Free Zone Complex. Although there was no warrant, the company said its representative allowed the officers to enter its warehouse and cooperated fully with the inspection.
While nothing illegal was found during the search, according to NATC, the health ministry’s tobacco control unit on Feb. 9, 2023, instructed the company to cease operations immediately, arguing that the tobacco distributor did not have exemptions to engage in wholesale tobacco business in the free zone.
NATC maintains that it does not engage in real sale or distribute tobacco products in the local market. The free zone, it argues, is a jurisdiction separate and apart from the customs territory with its own rules on the movement of goods.
In a letter to the health ministry, NATC said the order to cease operations had resulted in extreme prejudice and economic loss, as the company had to stop approved exports and instead export from intercontinental business park free zones.
NATC also cited losses incurred by the delay in loading ships, which arrived in Trinidad and Tobago, and one of its major suppliers asking for a hold on clearing seven containers shipped to NATC out of concerns it would be barred from re-exporting the goods.
The matter is due for a hearing on April 24.
Aquios Labs and Innokin have launched a commercial product based on Aquios Labs’ water-based vaping technology, Innokin announced in a press release.
Unlike traditional vapes, AQ30 vape liquid comprises 30 percent water. This was made possible through a specialized formulation process developed by Aquios Labs and a new hardware design developed by Innokin. Research and development took more than two years.
According to Innokin, the AQ30 technology produces smoother vapor, delivers nicotine to the bloodstream more efficiently and significantly reduces the dehydration associated with vaping. Because water acts as a neutral flavor carrier, the liquid provides a more balanced and natural flavor than previously possible, the company says.
Furthermore, water-based technology may minimize any harm to health associated with vaping. With a boiling point of 119 degrees Celsius—significantly lower than that of existing technologies—vapes using AQ30 technology were found to produce 92 percent less acetaldehyde and 81 percent less formaldehyde than traditional vapes, according to Innokin.
The initial lineup of water-based vaping products, including Aquios Bar and Esco Bar 6000, debuted in the first quarter of 2022. Positive feedback from consumers and the trade press led to adoption of the water-based technology by leading vapor and fast-moving consumer goods retail channels, such as Eco Vape, JM Wholesale, Best One and Nisa.
Innokin launched Innobar C1 in November 2022, including a lineup of disposable devices and the reusable Innobar C1 pod system, all of which rely on AQ30 water-based technology. The Innobar C1 has been particularly successful and strongly contributed to business growth as the replaceable prefilled pods can be easily tailored to the desired specifications of the vaper, according to Innokin.
Innokin and Aquios Labs’ water-based vaping venture was recognized in September 2022 with a Golden Leaf Award during the GTNF in Washington, D.C.
With water-based vaping technology poised to gain a significant share of the market in 2023, Innokin and Aquios Labs aim to launch the products in more markets over the coming year.
Smoking prevalence is poised to drop below 5 percent in the coming months in Sweden—a level that would make the country “smoke-free,” according to a commonly used definition.
No other country in the European Union is even close to replicating this achievement and none are currently on track to even achieve it by the EU’s target of 2040, in 17 years’ time.
Sweden’s groundbreaking strategy to minimize the harmful effects of tobacco smoking and save lives is detailed in a new report titled “The Swedish Experience: A roadmap for a smoke-free society,” presented March 14 at an international research seminar in Stockholm.
According to the report’s authors, Sweden’s approach, which combines tobacco control methods with harm minimization strategies, could save 3.5 million lives in the next decade if other EU countries adopt similar measures.
“Quitting smoking like Sweden saves lives,” said Anders Milton, one of the report’s authors, in a statement. “It has annually saved more than 3,400 lives in Sweden. If all other EU countries did as Sweden did, 3.5 million lives could be saved in the coming decade in the EU alone.”
The Swedish model combines recommendations in the WHO Framework Convention for Tobacco Control, including reducing the supply and demand of tobacco, banning smoking in certain places, but it adds an important element: accepting smoke-free products as less harmful alternatives.
Sweden has a very successful tobacco strategy that should be exported.
“It’s about combining tobacco control with harm minimization,” explained Delon Human, another of the report’s authors. “There are no risk-free tobacco products, but e-cigarettes, for example, are 95 percent less harmful than cigarettes. It is far better for a smoker to switch from regular cigarettes to e-cigarettes or nicotine pouches than to continue smoking.”
The benefits of Sweden’s strategy are enormous, with the country having the lowest percentage of tobacco-related diseases in the EU and a 41 percent lower incidence of cancer than other European countries. The report also describes how the percentage of smokers in Sweden has dropped from 15 percent to 5.6 percent of the population in 15 years, putting it on track to achieve smoke-free status 17 years ahead of the EU’s 2040 target.
“Sweden has a very successful tobacco strategy that should be exported,” said Karl Fagerström, who also authored the report.
“It would be of enormous benefit to the world if more countries did as Sweden did with measures that reduce supply and demand while having differentiated tax rates that give smokers financial incentives to switch from cigarettes to less harmful alternatives,” Fagerström added.
The report was commissioned by Health Diplomats, an international organization working to improve access to healthcare, encourage innovation and the use of harm reduction to minimize the negative impact of alcohol, food, nicotine and drugs.
For countries looking to replicate the Swedish experience, the report offers the following recommendation:
The full report is available here: smokefreesweden.com/report_en.