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  • Oregon Expands Tobacco Definition to Curb Youth Nicotine Access

    Oregon Expands Tobacco Definition to Curb Youth Nicotine Access

    Starting tomorrow (June 5), Oregon is expanding what counts as a tobacco product under state law, KPTV reports. The change means oral nicotine pouches, nicotine gum, lozenges, and other nicotine products will be regulated the same way as cigarettes, vapes, and other tobacco products, including the state’s requirement that buyers be at least 21 years old.

    Health officials say the update aims to reduce youth nicotine addiction as products such as nicotine pouches keep growing in popularity; the article notes pouches became the second most-used tobacco product among middle and high school students nationwide last year. The Oregon Health Authority says many of these products come in sweet or minty flavors that appeal to young people and hopes the law will limit access and keep children from becoming addicted.

  • Pyxus Reports Record Adjusted EBITDA, Strong Q4

    Pyxus Reports Record Adjusted EBITDA, Strong Q4

    Pyxus International reported results for its fourth quarter and fiscal year ended March 31, 2026, highlighting a 35.2% year-over-year increase in fourth-quarter net sales, full-year operating income of $162.7 million and net income of $14.6 million, record full-year adjusted EBITDA of $226.7 million, and a leverage ratio improved to a multi-year low of 3.52x. Fourth-quarter sales rose $176.5 million to $678.2 million, driven by higher leaf sales volumes from Africa and North America on larger crops and shipment timing. Full-year sales, however, slipped 2.8% to $2.41 billion, reflecting a 3.8% decline in average price per kilo (primarily in Africa, with pricing tied to lower South American crop costs) and lower value-added tobacco product volumes, partially offset by growth in third-party processing.

    President and CEO Pieter Sikkel described fiscal 2026 as another year of outstanding results, crediting global teams with navigating a shift to an oversupply market while meeting sustained customer demand and achieving record adjusted EBITDA, strong margins, and improved credit metrics. Full-year gross profit rose 1.4% to $347.7 million, with gross margin improving to 14.4% on higher third-party processing volumes and increased South American leaf sales, while SG&A fell $8.1 million to $162.9 million. Full-year operating income increased 6.1% to $162.7 million. The company noted the global tobacco market has turned to oversupply on higher African and South American production, with total tobacco inventory rising to $786.7 million and uncommitted inventory at $45.2 million (about 9% of processed inventory); higher inventory is expected to produce more carry-over sales in fiscal 2027.

    On the balance sheet, strong sales and cash collections lifted cash and equivalents by $56.1 million year-over-year, generating fourth-quarter operating cash flow of $310.1 million and adjusted free cash flow of $352.1 million, with no outstanding borrowings on the company’s $150 million ABL at year-end. Leverage improved from 3.70x to 3.52x and interest coverage rose to 1.63x from 1.57x. Looking ahead, Pyxus guided fiscal 2027 sales of $2.3–$2.5 billion and adjusted EBITDA of $210–$240 million, with Sikkel citing a disciplined, demand-led operating model, anticipated steady demand and sufficient supply, and expectations of decreased crop costs and improved working capital.

  • New York: First-Ever Default for Municipal Tobacco Bond Market

    New York: First-Ever Default for Municipal Tobacco Bond Market

    Bonds issued by the Nassau County Tobacco Settlement Corp. failed to make a debt payment on June 1, marking the first payment default in the tobacco bond sector, according to Bloomberg, as the high-yield tobacco bond market comes under pressure from declining cigarette consumption. The county’s most recent audit warned of substantial doubt about the NCTSC’s ability to continue as a going concern amid insufficient settlement revenues, with survival dependent on refinancing or restructuring the debt. More than $10 million of NCTSC bonds traded this week at an all-time low of 52 cents; the bonds, issued in 2006, total $510 million including interest, and at a November board meeting an official said major banks had advised there were no opportunities for refunding or refinancing. The missed payment marked the final maturity for the 2006 Series A bonds. As James Pruskowski of Hennion & Walsh put it, a missed principal payment is “not a technicality” but a harder signal that the cash-flow waterfall is not covering what it was structured to cover.

    The financing was part of a wave of deals in which states securitized payments from the 1998 Master Settlement Agreement, under which tobacco companies pay states annually by April 15 based largely on prior-year cigarette sales volume. This April’s payment to Nassau was only $14.7 million, against a June 1 principal payment of $35.9 million and interest of $8.3 million. MMA noted that because payments continue in perpetuity, interest will likely keep being paid and principal will eventually be paid, though later than expected. The tobacco sector was among the worst-performing high-yield segments in May and has lagged for months; MMA’s Kevin McGuigan noted spreads on nonrated Buckeye bonds had widened more than 80 basis points since June 2025, and the Nassau miss could spook investors further.

  • Study: Collective Trauma Reminders Spark Tobacco, Cannabis Cravings

    Study: Collective Trauma Reminders Spark Tobacco, Cannabis Cravings

    New research from the Hebrew University of Jerusalem and the Israel Center for Addiction and Mental Health finds that merely being reminded of a collective trauma can trigger an immediate, measurable spike in cravings for tobacco and cannabis among regular users. The study, led by Dr. Vera Skvirsky and Dr. Uri Lifshin with colleagues, frames these sudden cravings as a reflexive psychological defense rooted in existential fear, a rapid mental shield against thoughts of mortality and vulnerability. It draws on terror management theory, which holds that humans, uniquely aware of their own mortality, instinctively deploy defenses against existential threats; the researchers suggest the urge to smoke functions as one such rapid “proximal defense.”

    The team ran two experiments. In the first, moderate-to-high-risk cannabis users read an article recounting the October 7 attack on Israel with recognizable images, while a control group read about dental pain; those exposed to the trauma reminder reported significantly heightened cannabis craving. The second experiment replicated the design with daily tobacco smokers and produced the same surge in nicotine cravings. Lifshin said the findings show how addictive behaviors are intertwined with a basic need for psychological survival, with the urge to smoke acting as a defensive response that pushes thoughts of mortality out of awareness.

    The data also showed that individuals with high attachment anxiety reported higher overall cravings. Notably, traditional anxiety buffers — attachment security, self-esteem, strong national identity, and self-affirmation tasks — did not diminish the cravings triggered by trauma reminders, suggesting the impulse is an urgent reflex to suppress threatening thoughts rather than a strategy to build psychological security. The authors argue that as societies grapple with war, terrorism, displacement, and uncertainty, understanding how existential fear shapes addictive behavior becomes more important, and they note that trauma reminders in news media may influence health-related behaviors even after the event itself has passed. The study appears in the Journal of Health Psychology.

  • New York Introduces Bill for Generational Nicotine Ban

    New York Introduces Bill for Generational Nicotine Ban

    New York State has formally introduced a generational nicotine ban that would make it illegal for any person born after December 31, 2007, to purchase nicotine products, including non-combustibles, in perpetuity. Assembly Bill 11509, introduced by Assemblywoman Amy Paulin of District 88 (representing parts of Westchester County), has been read on the Assembly floor and referred to the Committee on Health. Under the proposal, anyone currently younger than 21 would never legally be permitted to buy tobacco even after turning 21, while those currently of age would retain their right, meaning future generations would never gain it. The bill applies to any nicotine-delivery product, from vapes, chewing tobacco, and cigarettes to cigars, and even covers smoking paraphernalia and rolling papers.

    The proposal is part of a growing trend around the world, as the bill’s justification section references generational bans in Brookline, Massachusetts, and the United Kingdom, the latter having become law the previous month.

    The Premium Cigar Association criticized the measure as a “modern attempt at prohibition” that takes a one-size-fits-all approach and unfairly sweeps in premium cigars, and has launched a petition against the ban while meeting with the board of the New York Cigar Association to discuss next steps.

  • Senators Press Altria, Reynolds Over Lobbying

    Senators Press Altria, Reynolds Over Lobbying

    Six U.S. senators, including Democratic whip Dick Durbin and Elizabeth Warren, sent public letters to  Reynolds American and Altria asking questions about donations to and lobbying of the Trump administration, saying the companies had enjoyed a “lucrative payday” after spending millions to curry favor with the president. The letters followed the FDA’s new “enforcement discretion” policy, under which it will allow some manufacturers to sell vapes and nicotine pouches without the legally required license, a move that could unleash hundreds or more vapes onto the market and that came after White House pressure for change. It also followed political donations from both Reynolds, the U.S. subsidiary of British American Tobacco, and Altria as recently as April, and a May meeting between President Trump and tobacco executives.

    Calling the spending “money well spent,” the June 4 letters argued the donations and lobbying had enabled tobacco makers to circumvent federal laws to sell addictive vapes while harming the FDA’s independence, describing the outcome as a lucrative payday after years of unsuccessful efforts to weaken federal tobacco oversight. The senators requested details on donations, meetings, and the products that will benefit from the change. White House spokesperson Kush Desai responded that the FDA’s regulatory treatment of nicotine pouches and vapes is rooted in recent evidence that the products can help adults quit smoking. An Altria spokesperson called the guidance an important step toward addressing the illicit market by pairing enforcement with expansion of a legal, regulated marketplace for smoke-free products, saying the company is reviewing the implications for its product strategy and will continue competing within the FDA-regulated marketplace.

    Reuters notes the companies have “complained for years” that FDA policy helped fuel a booming market for unlicensed devices mostly from China, which Reynolds estimates is worth some £7 billion ($9.41 billion). They have launched lobbying campaigns and court cases, put sales targets on hold, and threatened to launch their own unlicensed products to compete, and have already announced plans for new launches following the enforcement-discretion policy. The letters were signed by Democratic senators Durbin of Illinois, Warren and Edward Markey of Massachusetts, Jeff Merkley of Oregon, Richard Blumenthal of Connecticut, and Jack Reed of Rhode Island.
  • Malawi Tobacco Commission Faults Farmers for Poor Handling, Rejections

    Malawi Tobacco Commission Faults Farmers for Poor Handling, Rejections

    Malawi’s Tobacco Commission has issued a stern warning to tobacco farmers over poor handling practices that it says are damaging the country’s leaf quality, depressing prices, and driving up rejection rates at auction floors. Speaking in Lilongwe at an engagement meeting with the Media Network on Tobacco, TC Public Relations Officer Telephorus Chigwenembe condemned practices such as mixing tobacco grades, adding water to bales to inflate weight, and manipulating leaf quality — conduct he said violates the Tobacco Industry Act of 2019 and is eroding market confidence in Malawi’s tobacco. He stressed that the industry can only stay globally competitive if farmers improve grading, curing, and professionalism, and he urged growers to prioritize quality over quantity.

    The warnings come amid mounting farmer complaints about low prices and rising rejections. Governance and economic commentator Dr. Ben Dzolowere offered pointed criticism of growers, arguing that many of the losses are self-inflicted through poor grading and careless handling. He accused some farmers of mixing green leaf with ripe leaf, blending dust with stalk, and concealing mold with wet spots to deceive buyers and graders, and condemned collusion between some graders and classifiers aimed at unfairly securing better grades. His central message was that while farmers cannot control global prices, they fully control the grade they bring to market, and that “bad grade guarantees a bad price.”

    Dzolowere argued that clean, well-cured, properly graded tobacco gives farmers stronger bargaining power and attracts buyer competition, while damp, mixed, poorly graded leaf invites lower offers from buyers who are driven by profitability and export standards rather than sympathy. Industry experts cited in the article agreed that without improvements in grading, curing, and handling, Malawi will continue to face high rejection rates and lower earnings despite strong production volumes. The Tobacco Commission says it has intensified awareness campaigns on proper tobacco preparation, maintaining that better quality is the fastest route to better prices and restored confidence in the sector.

  • New York Taxes Nicotine Pouches at 75% Under Enacted Budget

    New York Taxes Nicotine Pouches at 75% Under Enacted Budget

    Nicotine pouches in New York will now be taxed like other tobacco products such as cigars, following Governor Kathy Hochul’s signing of the state’s $268 billion budget into law on Thursday. The enacted budget brings alternative nicotine products under the state’s existing 75 percent wholesale tobacco tax. Beginning in fiscal year 2028, the levy is expected to channel an additional $50 million in annual tobacco tax revenues into the Health Care Reform Act fund. The tax differs in structure from the one applied to cigarettes, which are taxed at $5.35 per pack in New York.

    The change treats pouches such as Zyn and On! the same as conventional tobacco products despite their containing no tobacco leaf. State Budget Director Blake Washington has characterized nicotine pouches as a “public health concern,” describing cigarettes and pouches as “a distinction without a difference.” Tobacco control advocates have similarly argued that taxing all nicotine products broadly discourages addiction and protects youth, and Hochul has made youth nicotine access a prominent part of her public health agenda.

    In response, PMI U.S., the American arm of Philip Morris International, issued an unattributed statement saying the company was disappointed not only by the 75 percent wholesale tax but by what it called the state’s disregard for a more fiscally responsible alternative that would have raised more revenue with fewer unintended consequences for small businesses. The statement argued the tax moves in the wrong direction on affordability and public health, contending it will raise costs and discourage adult smokers from switching to better alternatives, thereby keeping more people on cigarettes. It further warned that the tax would fuel illicit trade by shifting demand to unregulated markets lacking safeguards and age verification, which it said would undermine the governor’s stated goal of preventing youth access.

  • Harm Reduction Advocates Slam WHO’s First Nicotine Pouch Report

    Harm Reduction Advocates Slam WHO’s First Nicotine Pouch Report

    The World Health Organization’s first-ever report dedicated to nicotine pouches, a 152-page document titled “Exposing marketing tactics and strategies driving the global growth of nicotine pouches,” which was released May 15 ahead of World No Tobacco Day, has drawn sharp criticism from scientists and tobacco harm reduction advocates, according to Filter. The report warns of the products’ rapid global expansion and aggressive marketing toward young people, with the WHO’s Dr. Vinayak Prasad noting that regulation is struggling to keep pace. Critics’ central objection is that the report omits the role pouches can play in harm reduction.

    The article emphasizes that nicotine pouches contain no tobacco, are used between gum and lip without combustion, and sit at the lowest end of the risk continuum, described by some research as roughly 100 times safer than smoking. With about 1.3 billion tobacco users worldwide and over 7 million associated deaths annually, advocates argue a large population could benefit from switching. Nancy Loucas of CAPHRA contended the report pushes a “prohibitionist narrative” and appears to override the WHO’s own Framework Convention on Tobacco Control, whose Article 1(d) explicitly includes harm reduction within tobacco control. British expert Clive Bates argued the report focuses on nicotine delivery rather than disease risk and called it “fundamentally misleading,” accusing it of spotlighting outlier products like candy branding and super-strength variants to provoke outrage.

    The piece points to Sweden, where easy access to snus and pouches has helped achieve the world’s lowest smoking rate at 3.7 percent, and to South Asia as regions where pouches hold harm-reduction potential. It also cites Canada’s 2024 pouch restrictions, which limited flavors, confined sales to pharmacies, and curbed advertising, as a cautionary case, with pharmacist Todderick Prochnau noting that the clampdown fueled an illicit market with higher-nicotine, non-age-gated products while potentially keeping some adults on cigarettes. Critics objected in particular to the WHO’s recommendations for flavor bans, high taxes, and nicotine-content caps, arguing higher-strength pouches can be key to keeping heavy smokers off cigarettes.

  • Study Finds Herbal Cigarettes May Match or Exceed Tobacco’s Harms

    Study Finds Herbal Cigarettes May Match or Exceed Tobacco’s Harms

    A new study from researchers at IIT Bombay and the University of Illinois Urbana-Champaign challenges the assumption that “tobacco-free” and “nicotine-free” cigarettes are safer to smoke, finding that herbal cigarettes can produce smoke and particulate pollution comparable to, and in some cases worse than, conventional tobacco cigarettes. The researchers tested six products, two tobacco and four herbal, examining particle size, chemical composition, and the smoke’s potential to trigger cellular damage. Their core argument is that the danger lies in combustion itself: burning plant material releases fine particles and reactive chemicals regardless of whether tobacco or nicotine is present.

    Several findings stood out. The herbal cigarettes produced roughly 20 percent more sub-500nm particles than the tobacco cigarettes, and such ultrafine particles can penetrate deeper into the lungs and potentially the bloodstream. The herbal products generated organic and elemental carbon at levels similar to or higher than tobacco cigarettes, undercutting the notion of “cleaner” herbal smoke. On oxidative potential (the capacity of particles to drive harmful reactions linked to inflammation, heart disease, and cancer) herbal cigarettes measured 24 units per microgram per minute versus 18 for tobacco. The wrapper also mattered: leaf-wrapped cigarettes produced more particles and higher oxidative potential than paper-wrapped ones, making leaf-wrapped herbal variants the most hazardous samples tested.

    The study, published in the Journal of Hazardous Materials, also highlights a regulatory gap. Because herbal cigarettes often contain neither tobacco nor nicotine, they can fall outside the regulatory frameworks of the U.S. FDA and India’s tobacco control law, allowing them to carry wellness and health-related claims — such as aiding sleep, easing anxiety, or relieving coughs — that would face tougher scrutiny on conventional products. Researchers including Professor Sameer Patel, Professor Vishal Verma, Dr. Alok Kumar Thakur, and Dr. P.S. Ganesh Subramanian warned that this could mislead both smokers seeking a substitute and non-smokers drawn in by a “natural” image, concluding that tobacco-free does not mean smoke-free or risk-free.