2023 - Tobacco Reporter

PMI Expands IQOS in Middle East

Philip Morris International has launched IQOS Iluma in Saudi Arabia, Kuwait and Bahrain, with a goal of creating a smoke-free future in the Gulf Cooperation Council region, according to the Saudi Gazette.

“Adult smokers may be unaware of the choices they are making, largely due to the lack of information and knowledge on products that bring them harm, versus scientifically backed products that reduce the likelihood of smoking-related disease,” said Tarkan Demirbas, area vice president of the Middle East at Philip Morris Management Services (Middle East) Limited. “At PMI, we are invested in providing existing adult smokers with better alternatives through harm reduction innovations, which can help them take a step back from cigarettes toward better alternatives.”

“Smoking-related diseases today call for a pragmatic solution that places consumers at the forefront while moving away from cigarettes,” said Saim Yasin, director of marketing and digital at PMMS. “IQOS Iluma is our latest innovation in tobacco-heating systems that will accelerate our goal toward a smoke-free future. Through a growing portfolio of smoke-free alternatives, we are reaffirming our commitment to create realistic, society-wide change that can reimagine the world we are living in—without cigarettes.”

The IQOS Iluma series offers three devices: IQOS Iluma Prime, IQOS Iluma and IQOS Iluma One. All the devices use new induction heating technology but offer different designs.

November 17, 2023

GIHC Completes Eastern Co. Share Purchase

Global Investment Holding Co. (GIHC) has completed its acquisition of a 30 percent share in Eastern Co., according to reports by Reuters and Ahram Online. The United Arab Emirates company paid EGP16.4 billion ($531.6 million) for its stake in the Egyptian tobacco firm.

First announced in September, the deal is part of Egypt’s floundering privatization program. In December 2022, the government promised the International Monetary Fund that it would allow private companies a greater role in Egypt’s economy in exchange for a $3 billion, 46-month financial support package.

In February, the government announced a list of 32 companies for privatization, subsequently adding Eastern Co., Telecom Egypt, and Ezz El-Dekheila to the roster, Ahram Online reported in a separate article. The government hopes to attract $5 billion through privatization between October 2023 and June 2024.

While it has announced a number of sales to foreign investors in principle, the sale to GIHC is the first to go through.

Under the agreement, the Emirati company will provide Eastern Co. with $150 million to procure tobacco materials for manufacturing.

In addition to CIHC, Eastern Co.’s primary shareholders are the state-owned Holding Company for Chemical Industries (20.9 percent), the Allan Gray Equity Fund (7.2 percent), the shareholders union of the Eastern Co. (6 percent), with the remaining 36 percent of shares trading freely on the stock exchange.

November 16, 2023

Health Groups Target Zonnic Pouch

Anti-smoking advocates in Canada are calling for the federal government to restrict sales of Zonnic, a product of Imperial Tobacco Canada (ITCAN), stating that it is aimed at youth. Health Canada recently approved the product, which is a nicotine-replacement therapy (NRT) oral pouch containing up to 4 mg of nicotine.

Despite the criticism, Imperial Tobacco Canada has defended its product. ITCAN “believes that Zonnic, a nicotine-replacement therapy (NRT) product authorized for sale by Health Canada, will help adult Canadian smokers quit,” the company wrote in a press release. “In addition to the youth access prevention measures ITCAN has already taken, ITCAN would support regulations that limit the sale [of the] NRT category to adults 18 years old and over.”

“I want to be absolutely clear: Zonnic is not a tobacco product,” said Eric Gagno, vice president of legal and external affairs at ITCAN. “It is licensed, regulated and advertised in the same way as any other smoking cessation product on the market. There should be no reason why ITCAN is singled out for adding another innovative choice to the market to help adult smokers quit.”

Zonnic is marketed as an NRT for adults, but it is available for sale at convenience stores and gas stations with no legal restrictions on who can purchase it, according to public health groups. The groups also stated that ITCAN’s social media posts feature young people and highlight Zonnic’s flavors, including Berry Frost and Tropic Breeze.

“It really is incomprehensible that this could have happened, but it has,” Rob Cunningham, senior policy analyst with the Canadian Cancer Society, told The Globe and Mail. “And now it has to be fixed.”

ITCAN’s press release states that “Zonnic is not promoted any differently than any other competing smoking cessation product in Canada. ITCAN’s marketing guidelines require that all material be targeted at adults. Everyone appearing in Zonnic advertising is 25 years old and older. In addition, the company has gone above and beyond the regulatory requirements in the terms of its market authorization by instructing retailers to require proof of age to purchase Zonnic at convenience stores. Zonnic is also sold behind the counter, which means the retailer must hand the product to the consumer. Furthermore, Zonnic will be available in pharmacies before the end of the month.”

The public health groups, including the Canadian Cancer Society, the Canadian Lung Association, Physicians for a Smoke-Free Canada and the Heart and Stroke Foundation, are calling on the Canadian government to make nicotine pouches prescription only or suspend the sale until changes can be made to prevent sales to minors. The groups are also calling for a moratorium on approval for any other nicotine pouches unless they are prescription only.

“As for all of our products,” Gagnon said, “our position has been consistent and strong on this point. Nicotine products are for adult consumers only. We believe that if we truly want to reduce the health risks of tobacco products, we need to introduce products that will be appealing to adult smokers and have them available where people traditionally buy their cigarettes. Health groups should be on our side with this rather than putting up roadblocks.”

“We are aligned to Health Canada’s goal of reducing smoking rates to below 5 percent by 2035,” Gagnon said. “But to get there, we need to change the conversation to bring about impactful outcomes. Governments, health groups and industry must work together in a meaningful manner to bring effective solutions to the market. Our door is always open to have those discussions.”

November 16, 2023

PMI Hosts ‘Technovation’ Event

Philip Morris International recently hosted its seventh Technovation at the Cube, the company’s R&D center in Neuchatel, Switzerland. The event provides stakeholders the opportunity to interact with senior leaders, scientists and R&D experts from PMI.

According to PMI, the conversations focused on the crucial roles that innovation, technology and science can play in enabling a better future for everyone—highlighting the call to harness the full potential of innovation and evidence-based policies that are needed to steer the collective efforts toward eliminating smoking.

[T]here’s a potential for a tenfold reduction in smoking-attributable deaths compared with historical tobacco control measures alone.

Jacek Olczak, PMI CEO

“It is no longer a case of if smoke-free alternatives are better than cigarette smoking; it is a case of by how much,” said PMI CEO Jacek Olczak in a statement. “Based on WHO [World Health Organization] and other third-party data, our hypothetical model shows that if smoke-free products are assumed to be 80 percent less risky than cigarettes—and if people who currently smoke were to switch to them completely—then over their lifetime, there’s a potential for a tenfold reduction in smoking-attributable deaths compared with historical tobacco control measures alone.”

Gregoire Verdeaux, PMI’s senior vice president of external affairs, led a discussion on what success looks like when regulating smoke-free alternatives. Citing Italy, Japan, New Zealand, Sweden, the U.K., the U.S. and other countries, Verdeaux made the case for inclusive and innovative frameworks that have complemented traditional tobacco control measures in expediting the decline of smoking.

The COP10 could be used an as opportunity to bring all stakeholders together, consider the comprehensive science on nicotine alternatives and create guidelines that can help reduce harm.

Gregoire Verdeaux, senior vice president of external affairs, PMI

“The number of smokers globally has remained virtually unchanged for the past 30 years,” said Verdeaux, who said the upcoming session of the Conference of the Parties to the WHO Framework Convention on Tobacco Control (COP10)—which was recently postponed to 2024 due to civil unrest in its host country, Panama—presents a chance to change the global smoking rates status quo.

“The COP10 could be used an as opportunity to bring all stakeholders together, consider the comprehensive science on nicotine alternatives and create guidelines that can help reduce harm for hundreds of millions of smokers around the world. Unfortunately, this is not the case, but we hope that this will change in future for the benefit of a billion smokers and global public health,” said Verdeaux.

The missing piece of the puzzle is the collective effort of governments, the public health community, our industry and civil society.

Tommaso Di Giovanni, vice president of international communications and engagement, PMI

Tommaso Di Giovanni, PMI’s vice president of international communications and engagement, discussed what more can be done to encourage innovation in the tobacco industry. He said, “Better alternatives to cigarettes exist, and scientific data support their potential to be less harmful. The missing piece of the puzzle is the collective effort of governments, the public health community, our industry and civil society to make these alternatives accessible to adult smokers who do not quit. To support this transformation, we envision to become a majority smoke-free-led entity, with smoke-free options now accounting for over 36 percent of total net revenues, following third-quarter financial results.”

November 16, 2023

Zimbabwe Leaf Exports Top $1 Billion

Tobacco export earnings in Zimbabwe have increased to over $1 billion as of Nov. 10, and dryland farmers have continued to plant, according to The Herald.

According to the Tobacco Industry and Marketing Board (TIMB) weekly report data from Nov. 10, there was a 41 percent increase in the value of exported tobacco from $753.14 million from January to Nov. 10, 2022, to $1.06 billion in the same period of 2023.

This year, there was a 28 percent increase in volume terms from 157.95 million kg to 202.68 million kg. The average price increased 10 percent to $5.25 per kilogram.

The Far East market accounts for 64 percent of earnings, followed by the European Union at 14 percent and Africa at 12 percent. The Far East market had the highest average price at $7.19, followed by the EU at $4.37 and Africa at $3.43.

According to the TIMB report, there was a 3 percent decrease in total area under tobacco to 27,615 hectares this year.

Due to the El Nino weather forecast, there has been a 10 percent increase in irrigated area to 17,395 hectares. The area planted under dry land tobacco decreased 20 percent to 10,220 hectares.

The 2023/2024 season shows a 25 percent decrease in growers registered to 107,415. Of the registered growers, 92 percent are contracted.

“We hope mother nature will hear us this coming two weeks because we might lose some of the planted tobacco if it does not rain,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association.

“We encourage farmers to do their best to mitigate negative effects of El Nino, and those who have not yet started planting must continue attending to nurseries and prepare land,” said Victor Mariranyika, president of the Tobacco Farmers Union Trust.

Zimbabwe aims to increase the value of its tobacco business to $5 billion by 2025 as part of the government’s Tobacco Value Chain Transformation Plan.

November 16, 2023

Ghana’s Tobacco Control Strategy

Ghana’s government has developed a five-year National Tobacco Control Strategy (NTCS) with a goal of decreasing the consumption rate of tobacco in the country, reports The Ghanaian Times. The end goal of the NTCS is to eradicate all tobacco usage.

The Ministry of Health, the Food and Drugs Authority (FDA), the World Health Organization and the United Nations Development Program put the strategy plan together along with advocate policymakers on tobacco control.

According to Baffour Awuah, acting director of the Technical Coordination Directorate of the Ministry of Health, cardiovascular disease rates due to increased smoking are rising.

“The strategy we are launching today is the climax of extensive collaboration, research and commitment by various stakeholders, experts and civil society,” Awuah said. “Its purpose is to guide us in combatting the devastating effects of tobacco use, both in terms of health and the economy.

“It aims to ensure effective coordination among agencies involved in tobacco control, setting clear goals and adopting strategic timelines.”

Awuah encouraged stakeholders to actively engage in discussions to help transform the document into tangible action.

Olivia Boateng, director in charge of tobacco and substance abuse at the FDA, stated that illicit trade in tobacco products has made them more accessible at lower prices. The country has made progress in tobacco control policies, but the illicit trade has “amplified the tobacco epidemic,” according to Boateng.

Stakeholders will be trained on the protocol to eliminate illicit trade in tobacco products in the country once the NTCS is implemented, according to Boateng.

November 16, 2023

Postponed COP to Prioritize ENDS Rules

The regulation of new and emerging e-cigarette, heated-tobacco and nicotine products will be one of the central topics of discussion at the COP10-MOP3 international tobacco control conferences next year, said Adriana Blanco, head of the World Health Organization Framework Convention on Tobacco Control (FCTC), in a virtual press conference on Nov. 14, reported ECigIntelligence.

Speaking from the WHO headquarters in Geneva, Switzerland, Blanco said that proposals to create more stringent rules and health guidelines to govern new tobacco and nicotine product use will be prioritized at the COP10 (10th Conference of the Parties to the WHO FCTC) and the MOP3 (third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products), which will now take place in Panama next year.

November 16, 2023

Black Farmers Petition Against Menthol Ban

The National Black Farmers Association (NBFA) is calling on the Biden Administration to end its proposed ban on menthol tobacco products, calling it a misguided federal policy that will devastate Black farmers and rural communities. Representing 130,000 members across 47 states, the NBFA has launched a nationwide Change.org petition to rally support.

“The White House is about to hand down another mandate that will put more Black farmers out of business,” said NBFA Founder and President John Boyd Jr. in a statement. “The proposed federal ban targets adult use of menthol tobacco products—the kind of tobacco products preferred and grown by Black farmers. This will rob small towns and businesses of critical income.”

The process to finalize a Food and Drug Administration rule is expected within weeks. If enacted, the ban could lead to widespread unemployment, loss of income and assets, and even the potential extinction of generations of farming families, according to the NBFA. “This is particularly true for Black farmers who are already struggling due to misguided federal policies and a lack of relief or alternatives,” the organization wrote.

The White House is about to hand down another mandate that will put more Black farmers out of business.

John Boyd, president, NBFA

“Few workers have been hit harder in recent years than Black farmers, whose numbers continue to dwindle. In 1910, about 14 percent of U.S. farmers were Black, owning more than 16 million acres. According to the latest available Census of Agriculture data, only one in 100 farmers is black, owning a total of less than 5 million acres.”

The association previously represented 1 million Black farmers across the country, a figure which now stands at over 130,000 across 47 states.

“We know all too well how misguided policies from the federal government have, time and time again, put another nail in the coffin of Black farmers and rural towns across America,” added Boyd. “My members stand on the brink of disaster. We must find a better solution that does not further damage America’s shrinking rural towns or put additional pressure on hardworking farmers. This NBFA petition allows us to speak out—we hope the White House will hear the concerns of generations of Black farmers.”

Beyond the economic impact, opponents of the ban on menthol tobacco products note measure would criminalize the sale, distribution and possession of menthol cigarettes. This criminalization, they warn, could result in mandatory minimum sentences, revocation of parole, fines, the loss of one’s right to vote, or even deportation, among other criminal legal consequences.

A study by Columbia University’s Mailman School of Public Health reveals that 40 percent of adults who use cigarettes smoke menthol and that over 80 percent of Black smokers use menthol.

November 16, 2023

Paper Market Projected to Exceed $500 Million

The value of the cigarette paper market is likely to reach $552.8 million by 2034, according to a new report by Future Market Insights (FMI). In 2024, the market value is estimated to be $407.3 million. As smokers worldwide seek affordable options, the cigarette paper market is expected to expand by 3.10 percent from 2024 to 2034.

Nearly 1.1 billion people in the world smoke tobacco products. A major part of this population resides in developing and underdeveloped nations where the per capita income is lower than the global average, and the demand for cost-effective smoking alternatives has been experiencing exponential growth. With cigarette papers, smoking enthusiasts can make their cigarettes by using their desired tobacco products.

In the past few years, demand has also shifted toward products made from sustainable materials. Key players in the industry have already started developing cigarette papers made from hemp, wood pulp, etc. This move will not only appeal to the younger population concerned about the environment but also reduce the carbon footprint these companies leave during the manufacturing process of these products.

Apart from all these factors, cigarette papers also offer considerable flexibility and options for the smoking experience to the consumers.

“The market for cigarette papers has a huge potential as the number of smokers in the world is growing continuously. The average per capita income across the world is rising, and people are investing a considerable amount in leisure activities. The cigarette paper manufacturers can capitalize on this trend to gain higher profits in the market,” said Senior Consultant Ismail Sutaria in Packaging in a statement.

November 15, 2023

FEELM 2.0 Boosts Puff Count

Smoore International revealed its FEELM 2.0, the first disposable vape to offer more than 1,000 puffs in 2 mL.

“There is an evident demand for increased puff counts and consistency in taste, especially at a time when the rising cost of living is a constant concern,” said Smoore’s U.K. business director, Thalia Cheng, in a statement. “FEELM 2.0 is our disposable vape solution with the call sign ‘Double the puff, double the joy.’ Based on Consumer Intelligence data, we estimate it can save consumers around £900 [$1.12 billion] annually compared to using standard disposables.”

According to Smoore, the FEELM 2.0 also heightens the actual vaping experience through enhanced vaping consistency and improved e-liquid utilization.

Inter Scientific confirmed that FEELM 2.0 shows marked improvements in both e-liquid utilization and vapor consistency when compared to industry standards. The enhanced e-liquid utilization effectively increases the number of puffs while the reduced vapor variation ensures a more consistent experience, minimizing differences with each puff.

“Smoore’s FEELM 2.0 technology provides consistent uniformity of e-liquid aerosolization over the device life and complies with TRPR 2016 requirements of a tank volume limit of 2 mL,” said David Lawson, CEO of Inter Scientific.

November 15, 2023

Year: 2023