Year: 2023

  • KT&G to Buy Back Shares

    KT&G to Buy Back Shares

    Image: Vlad Ispas

    KT&G will spend KRW2.8 trillion ($2.1 billion) to buy back shares and provide dividends to shareholders over the next three years, according to Yonhap News Agency. The company will buy back KRW1 trillion in shares for cancellation and distribute KRW1.8 trillion in cash dividends.

    “Seventy percent of KT&G shareholders are long-term investors who have kept KT&G stocks for more than three years. The government is known to be considering providing incentives to companies which cancel their own shares,” the company said during the Value Day 2023 event.

    KT&G aims to maintain a debt-to-equity ratio in the lower 40 percent range over the next three years. At the end of September 2023, its debt-to-equity ratio was 40.6 percent.

  • Hyla Applies to Sell Vegan Vape in Europe

    Hyla Applies to Sell Vegan Vape in Europe

    Image: Olivier Le Moal

    Endexx Corp.’s Hyla division is filing an EU Tobacco Products Directive (TPD) application for its vegan formulated e-cigarette products.

    “Our proprietary botanical ingredient profile, flavoring and vegan sensitive formulations created in the United States will carry through in Hyla’s nicotine-enhanced products. These factors are what differentiate Hyla’s product quality,” stated Nick Mehdi, CEO of Hyla. “Hyla’s distribution partners in Europe are the top tobacco and e-cigarette distributors in Europe and have directly requested this product expansion due to ongoing demand and need for compliance leadership provided by Hyla.”

    The TPD registration accelerates Hyla’s product placement into Austria, Belgium, the Czech Republic, France, Germany, Greece, Italy, Slovakia, Spain, Switzerland and the United Kingdom. Several of the listed countries have already reviewed Hyla’s non-nicotine products. The TPD registration opens the European market to all Hyla’s products.

    “Endexx’s investment into Hyla has generated early success by providing non-nicotine electronic devices into the international markets. The Hyla brand represents high-quality, vegan and natural products, with attention to all regulations and compliance required to conduct commerce in each country,” said Todd Davis, CEO of Endexx. “This registration process helps secure the success of our long-term target of being a dominant player in the international age-restricted CPG markets.”

  • Conditional Approval for Redwood Studies

    Conditional Approval for Redwood Studies

    Image: chase4concept

    Redwood Scientific Technologies has secured conditional approval from the Institutional Review Board (IRB) and Central Institutional Review Board to study nicotine addiction in vape devices.

    The conditional IRB approval not only paves the way for the study on Redwood’s product for nicotine addiction in vape devices but also extends to a study on TBX Free, the company’s primary product designed to combat nicotine addiction in traditional cigarettes.

    “It has been a long road for us, and we are working around the clock to get these products on the market as fast as possible,” said Redwood CEO Jason Cardiff. “We understand the urgency for help when it comes to the addiction of nicotine in vapes.”

  • Cigarette Prices Up in Egypt

    Cigarette Prices Up in Egypt

    Image: Mohamed

    Egypt’s Eastern Co. recently announced price increases to help absorb the cost of inflation. Following this announcement, Philip Morris Misr updated its price list for all its conventional cigarettes and heated-tobacco products, reports Daily News Egypt. The company has urged retailers and distributors to comply with the price changes.

    Since 2022, Philip Morris Misr has placed a QR code on all product packaging, allowing consumers to scan the code to verify official prices.

    Under the changes, Merit will now sell for EGP74 ($2.39) per pack, Marlboro for EGP69 per pack, Marlboro Crafted for EGP59 per pack, L&M for EGP50 per pack, Heets Selections for EGP56 per pack, Heets Dimensions for EGP56 per pack and Terea for EGP56 per pack. The price changes mark a 15 percent to 20.5 percent increase, according to Ahram Online

  • U.K. Urged to Track Tobacco Lobbying

    U.K. Urged to Track Tobacco Lobbying

    Photo: GR/peopleimages.com

    The United Kingdom should introduce a legally binding and publicly accessible register that covers all lobbying and policy influence activity to reduce the tobacco industry’s influence on policymaking, according to the Tobacco Control Research Group (TCRG) at the University of Bath.

    The call comes after the group’s most recent Tobacco Industry Interference Index (UKTI) revealed that the U.K has become more susceptible to industry influence.

    TCRG researchers measured the intensity, frequency, and severity of incidents of tobacco industry interference against 20 indicators between April 2021 and March 2023. In the most recent survey, which covered the period, the U.K. scored 48 out of a possible 100 in the 2023 ranking, compared to a score of 32 in 2021, where a higher score means greater tobacco industry interference.

    According to the authors, this year’s index highlights several areas of concern: 

    • A lack of transparency across government about its interactions with the tobacco industry and no requirement for the tobacco industry and its associates to register with the government. 
    • A wide range of “unnecessary” interactions between government officials, including senior ministers, and tobacco companies. 
    • No government ban on tobacco industry activities described as “socially responsible”
    • Tobacco companies attempt to influence policy by submitting responses to public consultations and officially commissioned policy reviews, including on issues of tobacco control.  

    “Our two-year research highlights a sharp increase in activity by tobacco companies to interfere with health policymaking,” said Raouf Alebshehy, lead author of the UKTI report, in a statement.

    “Unfortunately, this has been coupled with a lack of awareness and absence of implementation of measures protecting public health from the industry interference. Except for the U.K.’s health agencies and departments, we have evidence of incidents of tobacco industry interference at the most senior political levels.”  

    “The Tobacco Interference Index rightly highlights that the U.K. needs to improve cross government understanding about the processes which must be used to protect public policy from tobacco industry interference,” said Deborah Arnott, CEO of Action on Smoking and Health (ASH) UK.

    “Our ministry of health, which is the custodian for the U.K. of the WHO Convention on Tobacco Control, has already moved to address this through publication in June of guidance to all U.K. government officials on just this issue. We feel confident that the next U.K. Tobacco Industry Interference Index will show the U.K. moving back up the rankings.”

  • Javier Estades Reelected

    Javier Estades Reelected

    Photo: CAA

    The Cigar Association of America (CAA) has reelected Tabacalera USA CEO Javier Estades as its chairman.

    “Chairman Estades has been a leader in advancing public policy for the Cigar industry at the federal, state and local levels,” said CAA President David Ozgo in a statement. “He helped guide us to significant victories on a number of critical issues, which his peers recognized by reelecting him for another term as chairman. I personally appreciate his partnership, guidance, and support.”

    “I am excited to continue as Chairman of CAA, and proud of all the big wins we have achieved for the cigar industry,” said Estades. “We still have challenges ahead, but CAA is ready to continue fighting against improper, overreaching efforts by FDA and state and local governments.”

    As head of Tabacalera USA, Estades oversees a number of premium cigar entities, including Fort Lauderdale-based premium cigar company Altadis USA, the distributor and marketer of classic handmade premium cigars such as Montecristo, Romeo y Julieta and H. Upmann. He is also responsible for JR Cigar, one of the largest online retailers for premium cigars, cigar accessories, humidors, etc. and Casa de Montecristo, the premier modern cigar store featuring a large selection of premium cigars, smoking accessories, walk-in humidors, lounges and full bars across the U.S.

    After joining the U.S. cigar industry in 2011, he was first elected chairman of the CAA in November 2015.

    CAA is a leading national trade association for the U.S. cigar industry, representing the full range of the cigar industry. The organization supports its members by helping them successfully navigate through a challenging business environment, utilizing a broad network of advocates, who engage officials at the federal, state and local levels of government.

    “Cigars are more than a great American tradition—they are a powerful contributor to the American economy, responsible for billions of dollars in annual revenue and thousands of quality jobs,” Ozgo noted.

    Originally established in New York City in 1937 as Cigar Manufacturers of America, CAA’s roots date to predecessor organizations prior to 1900. The group is now based in Washington, D.C.

     

  • Unpacking the Pouch

    Unpacking the Pouch

    Photo courtesy of Broughton

    How we can better understand the toxicological risk of nicotine in modern oral and other nicotine products

    By Libby Clarke

    Nicotine may be acutely toxic via all routes of exposure if the dose is high enough, but determining the true extent of its toxicity is challenging because of the variation in data. In 2014, Bernd Mayer highlighted the discrepancy between the generally accepted lethal dose of nicotine and documented cases of nicotine intoxication. Examining these accidental oral ingestion case studies gives us another data point for consideration when determining nicotine toxicity.

    In this article, Libby Clarke, managing consultant for toxicology at contract research organization (CRO) and scientific consultancy Broughton, explains how manufacturers can understand the true impact of oral pouches and other nicotine-based products.

    The U.S. Centers for Disease Control and Prevention and the National Institute for Occupational Safety and Health, along with other sources, report an estimated lethal dose of around 60 mg when nicotine is ingested orally. While broadly accepted by the Food and Drug Administration and other regulatory bodies, this value is derived from a series of self-experiments conducted by two individuals in the 19th century, where non-fatal adverse effects were reported.

    Mayer estimated that a dose of 60 mg of nicotine would give rise to a plasma concentration of approximately 0.18 mg per liter based on 20 percent oral bioavailability and assuming linear kinetics. Cases of fatal nicotine intoxication cited by Mayer suggest a much higher lethal nicotine blood concentration of approximately 2 mg per liter, corresponding to 4 mg per liter in plasma. Many existing case studies include data on accidental ingestion in children and infants, where the lethal dose is likely lower, as with nicotine naive adults.

    There is a significant disparity in the levels of nicotine that individuals can tolerate and a broad range in the upper level of nicotine that nonsmokers can consume without experiencing adverse effects. Research indicates that tolerance increases with repeated use of nicotine products, but the speed at which tolerance grows depends on the frequency of nicotine use, the amount absorbed systemically and individual genetics.

    Research Challenges

    Understanding nicotine toxicity is essential for determining the likelihood of adverse effects associated with certain products and concentrations, but research is limited. It is unethical to test nicotine toxicity in nonsmokers, and light or nondaily nicotine users are likely to have a lower tolerance, putting them at a higher risk of experiencing adverse effects such as dizziness, nausea and vomiting. On the other hand, established smokers have upregulated receptors in the brain, meaning many more nicotine receptors are available to bind nicotine than in nonsmokers. Therefore, the higher levels of nicotine that produce adverse reactions in nonsmokers are often required to satisfy the cravings of regular smokers.

    The wide range in tolerance among adult nicotine users makes it challenging for manufacturers to define a threshold for nicotine toxicity in their products. Meanwhile, attempting to extrapolate findings from children to adults is not recommended due to differences in metabolic capacity, which increases as people grow. There is also a vast difference in metabolic efficiency, even among adults, which limits extrapolation.

    Understanding the Effects of Nicotine

    One option is for manufacturers to review case studies, conduct postmarket surveillance (PMS) on the incidence of reported adverse effects and use surveys to understand consumer use and the subjective effectiveness of nicotine delivery. For example, Massen et al. (2020) evaluated case studies reporting the clinical symptoms and outcomes associated with accidental or intentional ingestion of nicotine-containing e-liquids, which are limited to 20 mg per milliliter in the EU. Gerdinique C. Maessen et al. reported that the highest nicotine plasma concentration in the surviving group was 0.8 mg per liter. In comparison, the lowest plasma concentration in the patients who did not survive was 1.6 mg per liter.

    Another approach is working with a CRO that can conduct dissolution, aerosol characterization for inhaled products and pharmacokinetic studies to inform on the nicotine levels being delivered to users. CROs can also conduct behavioral studies under controlled conditions to understand the use patterns for certain products and what products and strengths are used across population samples.

    When developing oral pouches, manufacturers must adhere to the regulatory guidelines that are starting to be brought in by some markets. The rate at which nicotine transfers from the pouch across the buccal membrane is one of the main factors associated with users experiencing adverse effects, so manufacturers should consider a range of nicotine strengths. Dissolution studies and clinical studies may provide useful data to inform nicotine exposure from pouches, and case studies and PMS may also provide valuable insights. Working with a CRO that can conduct such studies is an effective way of understanding a product’s safety profile and form part of a manufacturer’s product stewardship and duty of care responsibilities.

  • Revenue and Profit up at Ispire Technology

    Revenue and Profit up at Ispire Technology

    Photo: Freedomz

    Ispire Technology reported revenue of $42.9 million and gross profit of $6.9 million in the quarter that ended Sept. 30, reflecting growth of 59.1 percent and 43.7 percent, respectively, over the comparable 2022 quarter.

    Revenue from cannabis vaping products jumped 116.8 percent to $17.3 million, and revenue from tobacco vaping products was up 34.8 percent to $25.5 million.

    Ispire co-CEO Michael Wang attributed the growth to the company’s expansion in the United States and the reception there of its most recent product, Ispire One. “Our business strategy has clearly manifested as we continue to redefine the vaping experience, consistently delivering high-quality and groundbreaking products that align with customer preferences,” he said.

    “We remain confident in our ability to maintain our position as the leading premier precision dosing technology company as we’ve not only secured our position in existing markets but have also made inroads into new geographies, adapting swiftly to increased market demands. The establishment of a new manufacturing facility in Malaysia marks a strategic step into the Southeast Asian market, signaling our readiness for scalable operations.”

  • Malaysia Scraps Endgame Clause

    Malaysia Scraps Endgame Clause

    Image: Zimmytws

    The government of Malaysia has eliminated the generational endgame (GEG) clause from its Control of Smoking Products for Public Health Bill 2023, reports CodeBlue.

    The move follows an opinion issued by Attorney-General Ahmad Terrirudin Mohd Salleh’s that the proposed age-based prohibition—which seeks to ban tobacco and vape products for anyone born from Jan. 1, 2007—is unconstitutional because it would create two sets of laws for two different groups of citizens based on age.

    Enacting the GEG would require a change to Malaysia’s constitution, according to the attorney general, and the government was reportedly not confident it would be able to secure the required two-thirds majority in Parliament.

    Anti-smoking activists were outraged, saying that the cabinet’s decision to drop the generational provision from the bill violates the Convention of the Rights of the Child, which Malaysia ratified in 1995.

    “We believe that this is a backward step that will lead the people of Malaysia, especially children and adolescents, into the realms of nicotine addiction and drug dependence,” said Family Medicine Specialists’ Association (FMSA) President Nor Hazlin Talib.

    The FMSA urged the government to reinsert the GEG clause into the bill. “The government needs to prioritize public health over political and economic interests,” Talib said.

    In addition to the now removed GEG clause, the bill includes provisions on registration of tobacco products, advertisement, packaging and smoke-free places, among other items.

  • Kaival Appoints Hopkins as Executive Chairman

    Kaival Appoints Hopkins as Executive Chairman

    Image: Monster-Ztudio

    Kaival Brands Innovations Group has expanded the role of Barry Hopkins, chairman of the board, to the new position of executive chairman. In this role, Hopkins will serve as Kaival Brands’ principal executive officer. Current President and CEO Eric Mosser will continue to manage day-to-day operations of the company.

    Hopkins joined Kaival Brands as chairman of the board in March 2023. He is a 40-year tobacco industry veteran with deep operational experience and industry contacts. With his expanded responsibilities, Hopkins will play a more active role in the strategic direction and oversight of the company, with a focus on accelerating revenue growth, improving operational efficiencies and executing on Kaival Brands’ strategic initiatives.

    “Since I joined Kaival Brands in March, I have become even more energized by the opportunities for our company and look forward to working with Eric and our excellent senior leadership team to refine our strategic business plan and reignite growth,” said Hopkins in a statement. “I aim to foster a culture of performance and accountability and to establish clear decision-making processes and strong communication, which are essential for moving our promising business forward.”

    Hopkins spent most of his decades-long career primarily in senior sales and marketing roles for Turning Point Brands and Altria.