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Month: September 2024

  • Farmers Scramble to Save Leaf Ahead of Storm

    Farmers Scramble to Save Leaf Ahead of Storm

    Photo: sabino.parente

    Tobacco farmers in Cuba scrambled to secure thousands of tons of cigar tobacco ahead of Tropical Storm Helene, which was expected to unleash mudslides and flooding on the island, reports Reuters.

    Helene was churning about 277 km south of the western tip of Cuba as it barreled northwest, with maximum sustained winds of 72 kph, the Miami-based National Hurricane Center said Sept. 24.

    Forecasters predict Helene will strengthen quickly over the warm waters of the Gulf of Mexico to become a major hurricane, packing winds as high as 185 kph.

    A hurricane watch and tropical storm warnings were in effect across the western third of Cuba while the capital, Havana, was expected to see heavy rain and more moderate winds.

    The storm is expected to move north toward the U.S. later in the week over parts of Georgia, Tennessee and Kentucky, bringing isolated flash flooding and urban flooding, the U.S. National Weather Service said.

  • Penalties for U.S. Retailers Selling Illegal Vapes

    Penalties for U.S. Retailers Selling Illegal Vapes

    The U.S. Food and Drug Administration is seeking fines against two brick-and-mortar retailers and nine online retailers. The FDA previously issued warning letters to these retailers for their sale of unauthorized tobacco products; however, follow-up inspections revealed that the retailers had failed to correct the violations. Accordingly, the agency is now seeking a civil money penalty of $20,678 from each retailer.

    To date, the FDA has filed civil money penalty complaints against 70 manufacturers and 160 retailers for distribution and/or sale of unauthorized tobacco products. These actions reflect the FDA’s continued dedication to bringing enforcement actions against entities along the supply chain that violate the law relating to tobacco products.

    The FDA has currently authorized 34 e-cigarette products and devices. The agency maintains a printable one-page flyer of all authorized e-cigarette products that retailers can easily consult to determine which products may be lawfully marketed and sold in the United States. Entities manufacturing, importing, selling or distributing e-cigarettes that lack the required premarket authorization risk enforcement actions.

  • New Film Looks at European Harm Reduction

    New Film Looks at European Harm Reduction

    Independent filmmaker David Hanin from Oneshot Media launched a documentary on the European Union’s attitude toward tobacco harm reduction, according to the U.K. Vaping Industry Association (UKVIA).

    The film, titled Shut Up and Smoke, features a number of medical and industry experts calling for a better understanding of vaping and its potential for tobacco harm reduction. John Dunne, UKVIA director general, is one of those interviewed on the role of vapes in helping the millions of smokers to quit and the importance of vape flavors in achieving this.

  • Protocol to Eliminate Illicit Trade Turns Six

    Protocol to Eliminate Illicit Trade Turns Six

    The Protocol to Eliminate Illicit Trade in Tobacco Products celebrates its sixth anniversary today.

    The international treaty, which currently has 69 parties, aims to eliminate all forms of illicit trade in tobacco products through a comprehensive package of measures to be implemented by countries in cooperation with each other. The protocol builds upon and complements Article 15 of the World Health Organization Framework Convention on Tobacco Control, which requires parties to implement measures to counter illicit trade in tobacco products, such as supply chain control measures and cooperation in law enforcement and prosecution.  

    The protocol also addresses issues such as transnational organized crime, corruption, money laundering, national security, losses in government revenues, poverty and tobacco-related diseases. 

    According to the World Health Organization, illicit trade accounts for about 11 percent of total global tobacco trade, and its elimination could increase global tax revenues by an estimated $47.4 billion annually.

  • Fiscal Task Force Urges Higher Taxes

    Fiscal Task Force Urges Higher Taxes

    Photo: witsarut

    Raising taxes on tobacco, alcohol and sugary drinks can prevent millions of deaths and generate trillions in revenue for governments worldwide, especially in low-income and middle-income countries, according to a new report released by the Task Force on Fiscal Policy for Health.

    Among other conclusions, the report finds that raising taxes enough to increase prices by 50 percent on these products could prevent 50 million premature deaths over the next 50 years and raise $3.7 trillion over the next five years, including $2.1 trillion in low-income and middle-income countries, where the health burden is greatest.

    According to the authors, cigarettes have become more affordable to nearly 90 percent of the world’s smokers in the past five years due to stalled progress in increasing tobacco taxes.

    Co-chaired by philanthropist Mike Bloomberg, Barbados Prime Minister Mia Amor Mottley and economist Larry Summers, the task force convened in 2018 to address noncommunicable diseases and comprises experts in fiscal policy, development and health.

  • Indonesia Keeps Tax Rates

    Indonesia Keeps Tax Rates

    Photo: Taco Tuinstra

    Indonesia will maintain excise tax rates for tobacco products at their current levels next year, reports The Star.

    According to a finance ministry official, the country will consider other policies, including changes in retail prices, to discourage smoking.

    “We won’t adjust the rates next year, but we will look for other alternative policies, including adjustment in retail prices,” said Askolani, director general of customs and excise at the finance ministry.

    Indonesia raised excise tax rates for tobacco products by an average of 10 percent each year in 2023 and 2024 in an effort to control cigarette consumption.

    According to a health ministry survey in 2023, Indonesia had 70 million smokers among its 280 million people. It said 7.8 percent of smokers were between the ages of 10 to 18.

  • KT&G Releases Lil Solid 3.0

    KT&G Releases Lil Solid 3.0

    Image: KT&G

    KT&G has released Lil Solid 3.0 in South Korea, reports Maeil Business Newspaper.

    The new product is an upgrade to Reel Solid 2.0, which debuted in 2020. Lil Solid 3.0 offers two new usage settings that provide a differentiated sense of smoking. Boost mode delivers a rich haze volume and strong impact. Normal mode offers the same experience as Reel Solid 2.0.

    A “smart-on” function heats the device instantly when the stick is inserted. The fast charging allows the user to charge the device up to 50 percent of its capacity within 40 minutes.

    The recommended consumer price is KRW88,000 ($66).

    “Reel Solid 3.0 is expected to provide more satisfaction to consumers with upgraded user convenience and design,” said Lim Wang-seop, head of KT&G’s next-generation products business division. “We will continue to develop innovative products that can meet domestic and foreign consumer needs based on world-class brand competitiveness.”

  • Kaival to Merge With Delta Corp.

    Kaival to Merge With Delta Corp.

    Kaival Brands Innovations Group and Delta Corp. Holdings have entered into a merger and share exchange agreement whereby Kavial Brands and Delta will each become subsidiaries of a specially created holding company, Pubco.

    Incorporated under the laws of the Cayman Islands, Delta Corp. Holdings is a privately held company for global businesses engaged in bulk and energy logistics, fuel supply, commodities and asset management.

    Following closing of the transactions, which the parties expect will occur in the fourth quarter of 2024, the combined company would be traded on Nasdaq. The combined company will continue to operate under the Delta management team led by Mudit Paliwal, Peter Shaerf and Joseph Nelson.

    “This transaction marks an exciting new chapter for Kaival Brands,” said Kaival Brands interim-CEO Mark Thoenes in a statement.

    “Delta’s flexible, asset-light business model positions the combined company to capitalize on high growth areas within the energy and raw materials markets and offers our shareholders a unique opportunity. We are confident that this partnership will deliver substantial value to Kaival Brands’ shareholders and employees.”

  • Hungary: Heated Tobacco Displacing Combustibles

    Hungary: Heated Tobacco Displacing Combustibles

    Photo: Robson90

    Heated-tobacco products are gaining popularity at the expense of traditional cigarettes in Hungary, reports Trademagazin, citing the Regulatory Authority for Regulated Activities. According to the agency’s 2024 data, the trend will continue to strengthen.

    Compared to the early 2020s, Hungarians are buying 150–200 million fewer cigarettes each month on average, which means a significant drop on an annual basis. In the summer months of this year, demand increased as usual, but overall, fewer cigarettes are sold in Hungary every year.

    Monthly demand for finely cut consumer tobacco has decreased by between 20 percent and 25 percent from the 300 tons to 400 tons that Hungarians purchased per month in previous years.

    However, the illegal tobacco trade overshadows the official data, since in 2024 there has been a  significant increase in sales of tobacco on the tax-avoiding market, according to the regulatory authority.

  • Smugglers Caught Using Weather Balloons

    Smugglers Caught Using Weather Balloons

    Image: Bilal

    Polish border guards detained two people who had used weather balloons to smuggle cigarettes from Belarus, reports TVP World.

    The suspects had attempted to flee and were found with 1,500 packs of illegal cigarettes worth close to PLN24,500 (€6,377).

    On the same day, border guards in Nowy Dwor found another similar package containing illicit cigarettes worth over PLN23,000 along with the remains of a weather balloon fitted with a tracker.

    Additional balloons were found with packages of cigarettes valued at a combined PLN67,000.

    In the wake of enhanced security measures, including a steel barrier and thermal imaging, along the border between Poland and Belarus, cigarette smugglers have been looking for new ways to move contraband into the European Union.