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Year: 2023

  • Manufacturers Enact Tracking System

    Manufacturers Enact Tracking System

    Image: www.doglikehorse.com

    About 20 local cigarette manufacturing companies signed agreements with Pakistan’s Federal Board of Revenue (FBR) for implementation of a track-and-trace system, according to ProPakistani.

    The local companies have been forced to start implementation of the system due to vacation of stay orders from courts and the deputation of Inland Revenue officials. The FBR has been in a court battle for about two years over implementing the system; the FBR finally won the legal battle and is now enforcing the track-and-trace system at local factories.

    Implementation is at different stages for each company; almost all local manufacturers have signed the agreements with the FBR and begun implementing the track-and-trace system. One company has fully implemented the system while six companies are manually stamping cigarette packs. Some companies have purchased applicators, and other companies have started test runs.

    All manufacturing companies within the jurisdiction of Azad Kashmir have obtained stay orders against the system, however.

  • Romania Bans Flavors for Heated-Tobacco Products

    Romania Bans Flavors for Heated-Tobacco Products

    Image: Dancing Man

    Last month, the Romanian government enacted Governmental Ordinance No. 23/20.07.2023 amending and supplementing the Romanian Tobacco Law (GO 23). The move bans all flavored heated-tobacco products.

    The law takes effect on Oct. 23, 2023.

    Prior to enacting GO 23 under the framework of Romanian Tobacco Law, only cigarettes and roll-your-own tobacco were subject to the prohibition of characterizing flavors and containing flavorings in any of their components, such as filters, papers, packages, capsules or any technical features.

    The aim of GO 23 is to extend this prohibition to heated-tobacco products and to impose more restrictive requirements on packaging and labeling of such heated-tobacco products, according to media reports.

    For the first time, GO 23 enacts a legal definition of “heated-tobacco products,” which refers to “a novel tobacco product that is heated to produce an emission containing nicotine and other chemicals, which is then inhaled by user(s) and that, depending on its characteristics, is a smokeless tobacco product or a tobacco product for smoking.”

    This definition will include any type of vaping devices that entail heating of tobacco in view of obtaining an inhalable emission containing nicotine and other chemicals.

    Heated-tobacco products with any type of “characterizing flavor,” such as menthol, fruits, etc., will no longer be allowed in the Romanian market.

    Additionally, each unit of and any outside packaging of heated-tobacco products must carry the mandatory message: “Tobacco smoke contains over 70 substances known to cause cancer.”

    GO 23 also states that each unit packet and any outside packaging of heated-tobacco products for smoking must carry combined health warnings that observe all the requirements set out in art.

    All producers and importers of heated-tobacco products in Romania must notify the Romanian Health Ministry within 90 days after the enactment of GO 23.

  • Vape Recycling Introduced in Switzerland

    Vape Recycling Introduced in Switzerland

    Image: SENS eRecycling

    E-cigarette sales in Switzerland have increased over the past few years, with 10 million products imported in 2022. Most vapes end up in the landfill rather than being recycled as required by the Ordinance on the Return, Taking Back and Disposal of Electrical and Electronic Equipment.

    In conjunction with various partners, SENS eRecycling has developed an industry solution for the environmentally friendly disposal of e-cigarettes, according to the company’s website.

    Upon request, SENS eRecycling will deliver vape recycling bags to any e-cigarette sales outlet; the bags can be used to collect returned e-cigarettes and send them back to SENS eRecycling by post. Sales outlets and consumers can also hand in used vapes to any SENS collection point throughout Switzerland.

  • Juul to Restructure and Reduce Employees

    Juul to Restructure and Reduce Employees

    Image: Andrii Yalanskyi

    Juul Labs has announced a company restructuring aimed at reducing operating costs and positioning the company to continue to advance its mission during a period of regulatory and marketplace uncertainty.

    According to a press release, the principal aim of this restructuring is to enable the company to maximize profitability and cash-flow generation while continuing to invest in its core priorities, which include delivery of high-quality products to its commercial partners, ongoing development of next-generation products, engagement with the U.S. Food and Drug Administration regarding Juul’s pending and possible future market authorization applications, and commercial growth consistent with compliance with all applicable laws and regulations.

    With these operating cost reductions, Juul Labs says it is positioned to increase its adjusted EBITDA margins and generate meaningful free cash flow before litigation settlements. In doing so, the company will reduce its need to access capital pre-premarket tobacco product application, extend its time horizon to continue its pursuit of market orders from the FDA and generate positive equity value as the company pays down liabilities over time.

    Juul says it remains fundamentally optimistic about the prospects for Juul Labs Inc.—“a view rooted in our belief that our technology and our pipeline of new innovations represent the most valuable ever brought forward to transition adult smokers away from cigarettes while combating underage use,” the company wrote on its website.

  • Philippine Law Paves Way for Alternatives

    Philippine Law Paves Way for Alternatives

    Photo: Balint Radu

    The enactment of a new vape law in the Philippines last year has paved the way for products that provide smokers with better alternatives to cigarettes, according to Philip Morris Fortune Tobacco Co. (PMFTC) President Denis Gorkun.

    In addition to moving regulation of vapes from the Philippine Food and Drug Administration to the Department of Trade and Industry, Republic Act 11900 lowered the purchase age for e-cigarettes and heated tobacco products from 21 to 18, removed a two-flavor limit on product flavors and allows companies to conduct corporate social responsibility-related activities.

    In an interview with the Manila Bulletin, Gorkin said PMFCT would soon launch IQOS Luma, which uses induction technology to heat tobacco, and ZYN nicotine pouches in the Philippines. Made by Swedish Match, which was acquired by PMFTC’s parent company, Philip Morris International in 2022, ZYN is the best-selling nicotine pouch in the United States today.

    Since PMFTC launched IQOS in the Philippines, around 75,000 local smokers had switched away from cigarettes, according to Gorkun.

    Gorkun said PMI aims to eliminate cigarette consumption in line with its vision to deliver a smoke-free future. “We will continue to work towards our smoke-free future vision with products that are found by numerous international health authorities to be far better compared to continuing to smoke cigarettes.”

    He said the passage of the landmark Vape Law a year ago is a “win” for public health. While providing smokers with less harmful options, the law also contains provisions to deter underage consumption, according to its proponents.

    One of the authors of the vape law, former Representative Sharon Garin, said Republic Act 11900 provides that vaping isn’t made appealing to minors. “We don’t want non-smokers to pick up the habit of vaporized or electronic cigarettes,” she was quoted as saying. “What we want is a less harmful alternative for current smokers.”

  • Pakistan: Cigarettes Seized for Tax Violations

    Pakistan: Cigarettes Seized for Tax Violations

    Photo: sezerozger

    Pakistan’s tax authorities confiscated 650 cartons of cigarettes from Philip Morris (Pakistan), alleging that the products were sold below the minimum retail price, reports Pakistan Today.

    “This action underscores the government’s commitment to upholding tax laws and safeguarding public health,” a Federal Bureau of Revenue official was quoted as saying. “Violations of these regulations not only undermine public health initiatives but also lead to revenue losses for the government.”

    Philip Morris insisted it was in full compliance with tax obligations for all its brand. A company spokesperson said that the company is cooperating with FBR and is dedicated to tackling illicit trade in Pakistan.

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  • Special Report: Innovation

    Special Report: Innovation

    Photo: peshkova

    Until recently, few people would have mentioned the words “tobacco” and “innovation” in the same sentence. Even as other legacy industries started disrupting their respective operations, the tobacco industry remained content to milk its tried-and-tested business model and count on the habit-forming properties of nicotine to sustain its business.

    That has changed dramatically over the past 15 years. Advances in technology, together with shifting attitudes, have turned the once-staid nicotine business into a cutting-edge innovator. The modern e-cigarette was not invented by the tobacco industry, but when it started making inroads around 2008, the industry recognized its potential and devoted considerable resources to its perfection. The ensuing disruption to the nicotine business prompted one major financial institution to rank the impact of e-cigarettes in the same league as that of 3D printing.

    And it didn’t stop there. Tobacco companies went on to develop a host of additional reduced-risk technologies, such as tobacco-heating devices. Some even began applying their expertise in agronomy, product development and substance delivery to create nonrecreational products, such as vaccines, pharmaceuticals and therapeutic devices.

    Astonished by the radical transition taking place in the industry, and excited about what it promises for the future, Tobacco Reporter devote its entire April 2022 issue to the topic of innovation.

    Arizona Advances Landmark Vape Bill

    The Arizona Senate passed House Bill 4001 on May 26 with an overwhelming bipartisan vote of 24-2, establishing the state’s first formal regulatory framework for

  • Retailers Chided for Youth-Appealing Products

    Retailers Chided for Youth-Appealing Products

    Photo: Nadia L/peopleimages.com

    On August 23, 2023, the U.S. Food and Drug Administration issued warning letters to 15 online retailers for selling and/or distributing unauthorized e-cigarette products packaged to look like youth-appealing characters, school supplies, toys and drinks.

    “The design of these products is a shamelessly egregious attempt to target kids,” said Brian King, director of FDA’s Center for Tobacco Products, in a statement. “It’s a tough sell that adults using e-cigarettes to transition away from cigarettes need them to look like SpongeBob in order to do so successfully.”   

    The unauthorized products described in the warning letters include e-cigarettes that feature youth-appealing characters from TV shows, movies and video games; products that are designed to look like school supplies and toys; and vapes that imitate youth-appealing drinks such as Starbucks and Dunkin Donuts coffee cups.

    The recipients of the letters have 15 working days to respond with the steps they’ll take to correct the violation and to prevent future violations.

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  • Zimbabwean Growers Poised to Start Planting

    Zimbabwean Growers Poised to Start Planting

    Photo: YanaKho

    Zimbabwean farmers will start planting next year’s tobacco crop starting early next month, reports The Herald.

    Both irrigated and dryland tobacco farmers are preparing to transplant their seedlings from the seedbeds to the field.

    The irrigation tobacco is set to begin transplanting Sept. 1, while the rain-fed crop will be transplanted mid-October.

    “Preparations to plant irrigation tobacco are now at an advanced stage and farmers have enough equipment and water to ensure the success of the crop, said Tobacco Farmers Union Trust President Victor Mariranyika, who urged farmers to expand their hectarage.

    Zimbabwean tobacco farmers sold 295 million kg for $895million this marketing season, compared to 206 million kg for $630 million last year.

    The government aims to create a $5 billion tobacco industry by 2025 through its Tobacco Value Chain Transformation Plan, which calls for more leaf production, greater value addition and localized funding, among other objectives.

  • KT&G to Expand lil Hybrid 3.0 in South Korea

    KT&G to Expand lil Hybrid 3.0 in South Korea

    Image: 2Firsts

    KT&G plans to expand distribution of its heat-not-burn product lil Hybrid 3.0 to 26,000 convenience stores in South Korea beginning Aug. 23, reports 2Firsts.

    Lil Hybrid 3.0 has been available at official flagship stores and online platforms since its release on July 24. It will now be available in convenience stores across six metropolitan cities, including Seoul, Sejong and Gyeonggi.