2023 - Tobacco Reporter

Altria to Conduct Civil Rights Assessment

Altria Group will conduct an equity and civil rights assessment, according to a company press release. The assessment follows last year’s passage of a shareholder proposal recommending Altria commission a civil rights equity audit and seeks to address feedback received from recent robust shareholder engagement.

The assessment will review Altria’s policies, practices, programs and services intended to address the harm associated with tobacco use and the effectiveness of the company’s harm reduction efforts, including underage tobacco use prevention programs, tobacco cessation support, responsible marketing practices and regulatory engagement and public policy. The assessment will include an evaluation of these policies, practices, programs and services on communities of color and youth as well as the company’s inclusion, diversity and equity (ID&E) progress.

The assessment will be led by Altria and overseen by an external advisory review board consisting of third-party, independent members who possess relevant expertise in fields such as civil rights, ID&E, legal/law enforcement, public policy, public health and youth development. The external advisory review board will advise on and oversee the assessment, including the scope, stakeholder engagement and, ultimately, the presentation of the findings in a published report, which will be subject to assurance by a third-party firm.

Altria plans to post on its website a report discussing the results of the assessment within 12 months from when the assessment begins.

January 12, 2023

Zimbabwe Keen to Move up the Value Chain

The Zimbabwe government has put in place modalities to ensure value addition for tobacco before export, reports the Zimbabwe Independent.

The government plans to reach its USD5 billion tobacco industry goal by 2025 through beneficiation of the crop, according to Anxious Masuka, minister of lands, agriculture, water and rural resettlement.

“What we want to do is to ensure that there is more value addition and beneficiation of tobacco. We export 98 percent of our tobacco in raw form, thereby exporting jobs and value. It is estimated that we produce more than 200 million kilograms of tobacco, and as it crosses the border, the same tobacco fetches USD15 billion, and we only get USD1 billion,” Masuka said.

“Our tobacco is worth billions on the international market, but as Zimbabwe, we only get USD1 billion. So the government has now put in place the transformation plan to ensure that we increase the volume and also value add so that by 2025 we can have a USD5 billion industry.”

In 2022, Zimbabwe earned USD650 million, up from USD589 million in 2021.

January 12, 2023

Green Light for EU Flavor Ban Challenge

Ireland’s High Court has granted two tobacco companies permission to challenge the EU ban on flavored tobacco-heating products, reports The Irish Times.

The ban, which covers all flavors except tobacco, took effect Nov. 23, 2022. EU member states have until July 23, 2023, to transpose the rule into national legislation.

BAT subsidiaries PJ Carroll and Co. and Nicoventures Trading claim the EU directive is invalid. Their challenge targets the minister for health, Ireland and the attorney general.

PJ Carroll contends the EU ban undermines its “ability to capitalize fully on the unique opportunity of being the first company to launch heated-tobacco products on the Irish market for adult smokers who would otherwise continue to smoke.”

The company, which holds 10 percent of the Irish market for e-cigarettes, started commercializing heated-tobacco products in Ireland in 2021.

In an affidavit, PJ Carroll Director and Head of Trade Simon Carroll said the ban will also undermine BAT’s significant investment in the development of “products with reduced-risk profile (relative to cigarettes) to cater to the preferences of adult smokers in Ireland who would otherwise continue to smoke.”

In addition, the ban has significant implications for the implementation of public health policy and anti-smoking campaigns where there are acceptable alternatives to traditional cigarettes, he said.

PJ Carroll and Nicoventures have also challenged the directive at the EU General Court, which is part of the EU Court of Justice.

January 12, 2023

Indian Tobacco Exports up in 2021–2022

India exported tobacco and tobacco products worth $846 million during 2021–2022, reports The Hindu.

In terms of quantity, value in rupees and value in U.S. dollars, exports grew 1.35 percent, 5.91 percent and 5.34 percent, respectively, according to A. Sridhar Babu, executive director of the Indian Tobacco Board.

Flue-cured Virginia (FCV) tobacco accounted for the majority of unmanufactured tobacco exports, representing 53.62 percent in terms of quantity and 68.47 percent in terms of value.

India is the world’s fourth-largest producer of FCV tobacco and third-largest exporter, selling its leaf to more than 50 countries.

According to Babu, the crop in the southern region of Andhra Pradesh was severely affected by Cyclone Mandous in December 2022, forcing some farmers to replant their tobacco.

In response, the Ministry of Commerce extended interest-free loans to the growers participating in the Tobacco Board’s Growers’ Welfare Fund Scheme.

January 12, 2023

Menthol Ban Failed to Boost Illegal Sales

Banning menthol cigarettes does not lead more smokers to purchase menthols from illicit sources, according to a new research study published in Tobacco Control.

Researchers at the International Tobacco Control (ITC) Policy Evaluation Project at the University of Waterloo evaluated the impact of federal and provincial menthol cigarette bans in Canada by surveying smokers of menthol and nonmenthol cigarettes before and after Canada’s menthol ban.

Smokers were asked whether their usual cigarette brand was menthol-flavored and to report their last brand purchased. Those who were still smoking after the menthol ban were also asked where they last purchased their cigarettes.

Results showed that after the ban, there was no significant change in the purchase of cigarettes from First Nations reserves, the main source of illicit cigarettes in Canada.

“The tobacco industry has a long history of claiming that policies to reduce smoking will lead to substantial increases in illicit trade,” said Janet Chung-Hall, a research scientist for ITC and lead author of the new study, in a statement. “We can add the Canadian menthol ban to the long list of effective policies, such as graphic warnings and plain packaging, whose evaluation disproved the scare tactics by industry—showing that illicit trade did not, in fact, increase.”

A 2022 study that combined the ITC project data with data from a comparable Ontario evaluation study showed that the Canadian menthol ban led to an increase of 7.3 percent in quitting among menthol smokers above that of nonmenthol smokers. Projecting this effect to the U.S., whose Food and Drug Administration has proposed its own menthol ban, the ITC researchers estimate that a U.S. menthol ban would lead 1.33 million smokers to quit.

“Our previous research from Canada and the Netherlands showed that a menthol cigarette ban leads to significant reductions in smoking,” said Geoffrey Fong, principal investigator of the ITC project and professor of psychology and public health sciences at Waterloo. “These findings combine to provide powerful evidence in support of FDA’s proposed menthol ban.”

January 12, 2023

Tobacco Among Fastest Growing Technologies

Tobacco-related products were among the 10 fastest-growing technologies in 2022 when measured by the number of U.S. patents issued, according to IFI Claims Patent Services.

Philip Morris International, which is in the process of replacing its combustible cigarette business with less harmful smoking alternatives, was the most prolific claimant in the tobacco business, filing 1,364 cigarette patent applications in 2022.

South Korean electronics titan Samsung took the top spot from longtime leader IBM. Following Samsung and IBM, the top 10 patent earners were Taiwan Semiconductor, Huawei Technologies, Canon, LG Electronics, Qualcomm, Intel, Apple and Toyota Motor.

Technology related to autonomous vehicles ascended to the No. 1 spot among IFI’s Fastest-Growing Technologies list last year. While “Computing Based on Biological Models” dropped to No. 4 from its perch at No. 1 last year, artificial intelligence research has pervaded multiple patent categories, including earth drilling, quantum computers and machine learning.

Rounding out the top fastest-growing technologies were “Electrical Digital Data Processing,” with a compound annual growth rate (CAGR) of 33.9 percent; “Special Features Related to Earth Drilling Including AI and Simulation Models” (CAGR of 32.5 percent); “Computing Based on Biological Models” (CAGR of 32.1 percent); and “Electrically Operated Smoking Devices” (CAGR of 31.3 percent).

“Cigars, Cigarettes” registered a CAGR of 28.3 percent.

January 11, 2023

Vape Merchants Must Register with BIR

The Philippine Bureau of Internal Revenue (BIR) has requested that vape merchants register their businesses to avoid serious consequences in the future, reports the Manila Bulletin.

Criminal tax evasion charges will be filed against merchants that do not comply with revenue regulations, according to BIR Commissioner Romeo D. Lumagui Jr. Tax evasion charges were previously brought against five major importers and distributors of vapor products, totaling over PHP1 billion ($18.2 million).

Under the law, first-time offenders face a fine of PHP2 million and up to two years in jail. Second-time offenders face a fine of PHP4 million and up to four years in jail. Third-time offenders face a fine of PHP5 million and up to six years in jail. Foreign nationals caught breaking the law would face immediate deportation after serving the appropriate jail term.

January 11, 2023

New Zealand Solicits Feedback on New Rules

New Zealand’s government is seeking feedback on measures to help reduce the number of young people vaping, reports The Times Online.

According to Associate Health Minister Ayesha Verrall, vaping is becoming increasingly popular among New Zealand youth, including among youngsters who have never smoked.

“Vaping has a role to play in ensuring smokers who wish to quit smoking can do so using vaping products; however, youth vaping rates are too high, and we need to strike a better balance,” she was quoted as saying.

The proposed measures include proximity restrictions for all new specialist vape retailers, so they are not near schools and sports grounds; restrictions on flavor names to avoid attracting youth; and restrictions on single-use vaping products, which are cheaper and more easily accessible than other e-cigarettes.

In addition, the government wants to reduce the maximum concentration of nicotine salts in single-use products from 50 mg/mL to 35 mg/mL and require vaping companies to print serial or batch numbers on their products to make them traceable.

The consultation document is available on the Ministry of Health website with submissions closing at 5 p.m. on March 15.

January 11, 2023

Parkside Appoints New Business Manager

Parkside Flexibles has appointed Ian Dewar as business unit manager for its Kuala Lumpur, Malaysia, operation.

Dewar’s substantial knowledge of materials, additives and coating formulations will provide Parkside customers with the expertise to develop packaging that balances plastic reduction with barrier performance, all while complying with relevant legislation.

“We are delighted to welcome Ian to our growing team in the region. This is an exciting time for our business as we strive to meet the evolving needs of APAC [Asia-Pacific] customers and consumers, and we expect Ian, with the extensive experience he has gathered throughout his career, will play a big part in that aim,” said Paula Birch, managing director of Parkside Asia.

“2022 has been a big year for flexible packaging in the region following key carbon commitments from the Chinese government, the Indian government’s single-use plastic ban, and many more legislative changes. Ian’s experience puts Parkside in the strongest position for APAC customers seeking to improve their sustainable packaging portfolio with high-performance flexible packaging solutions.”

“There are many challenges to overcome and opportunities to make the most of in the APAC region, and I’m ready to roll my sleeves up and deliver for our customers in 2023,” said Dewar.

With sites in the U.K. and Malaysia, Parkside employs almost 200 staff worldwide.

January 11, 2023

Former STMA Leader Under Investigation

Chinese authorities are investigating Zhao Hongshun, former deputy chief of the State Tobacco Monopoly Administration, for corruption, reports Xinhua News

In a statement, the Communist Party’s Central Commission for Discipline Inspection and National Supervisory Commission said that Zhao “had lost his ideals and convictions, defied Party discipline and laws, was disloyal and dishonest to the Party and resisted investigation.”

Taking advantage of his posts, Zhao sought benefits for others in personnel promotion, consorted with illegal private enterprise owners, traded power for money and received gifts and money, according to the accusations.

Zhao allegedly also engaged in profit-driven activities against Party rules, and illegally owned shares of companies.

Authorities said Zhao’s illicit gains would be confiscated and the suspected crimes will be transferred to the procuratorate for further investigation and prosecution.

January 10, 2023

Year: 2023