Author: Staff Writer

Malawi Minister Furious Over Rejections

Photo: africa
Malawi Minister of Agriculture Lobin Lowe has summoned representatives of all tobacco stakeholders to discuss the high rejection rate, reports The Nyasa Times. Up to 72 percent of bales brought to auction were being rejected at the newspaper’s press time.
Lowe urged farmers to deliver high-quality tobacco and to avoid child labor, which international tobacco buyers frown upon. What’s more, he encouraged tobacco growers to diversify into crops such as soya, groundnuts and cotton to reduce their dependency on the golden leaf.
Lowe echoed sentiments expressed earlier by Malawi President Lazarus Chakwera. During the opening ceremony of 2021 tobacco selling season on April 20, Chakwera said there was no future in tobacco due to declining demand.
Chakwera said Malawi tobacco growers should switch to other cash crops like cannabis, which Malawi legalized last year for industrial and medicinal use.
April 28, 2021
Justice Advocates Plead to Keep Menthol Legal

Photo: Fractal Pictures
The National Newspaper Publishers Association (NNPA), representing more than 200 African American-owned community newspapers from around the United States, and leading Black and Hispanic law enforcement executives are urging the Food and Drug Administration to keep menthol cigarettes legal. The FDA must respond by April 29 to a citizen’s petition demanding menthol cigarettes be banned nationwide.
“It is clear that there is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking,” says Benjamin Chavis, president and CEO of the NNPA. “In fact, the unintended consequences of such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.”
According to the NNPA and its fellow petitioners, daily interactions between police and people of color demonstrate that a menthol ban would give police pretext to approach a smoker to find out where cigarettes were purchased in order to get to the seller of the counterfeit tobacco.
“In recent times, the world has seen far too many cases of these encounters lead to verbal and physical altercations and often fatal results,” the NNPA wrote in a press release.
Such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.
Benjamin Chavis, president and CEO, NNPA
According to the U.S. Surgeon General report on smoking cessation, “the evidence is suggestive but not sufficient to infer that restricting the sale of certain types of tobacco products, such as menthol or other flavored products, increases smoking cessation, especially among certain populations.”
The organizations are requesting that the FDA exhaust all other options before completely removing menthol cigarettes from legal, regulatory channels.
The citizens’ petition demanding a menthol ban was filed by the African American Tobacco Control Leadership Council and Action on Smoking and Health, which contend that tobacco companies have specifically targeted Black Americans with menthol cigarettes.
April 28, 2021
New Chairman at British American Tobacco

Luc Jobin (Photo: BAT)
Luc Jobin succeeds Richard Burrows as chairman of BAT today. Jobin joined the BAT board in 2017 as an independent nonexecutive director. His previous positions include president and CEO of Canadian National Railway Co., executive vice president of Power Corp. of Canada and CEO of Imperial Tobacco Canada.
Speaking at BAT’s annual general meeting, Burrows said his successor would inherit “a strong business that is transforming, has excellent momentum and is well placed to deliver sustainable growth for many years.”
BAT delivered constant currency revenue growth of 3.3 percent, above its revised 1 percent to 3 percent guidance range. On a constant currency adjusted basis, profit from operations grew by 4.8 percent. Operating margin grew by 100 basis points to 44.1 percent including the impact of currencies.

BAT is well positioned for future success with Luc as chairman and Jack Bowles as chief executive.
Richard Burrows
Reduced-risk “new category” products delivered £1.4 billion ($1.94 billion) in revenues in 2020, representing 15 percent growth at constant rates compared with 2019. The company is on track to meet its £5 billion new category revenue ambition by 2025.
Burrows expressed strong confidence in BAT’s future under Jobin’s leadership.
“Luc brings a wealth of experience, including significant financial, regulatory and consumer business acumen. Having worked closely with him in his role as a nonexecutive director over the last three years, I know that BAT is well positioned for future success with Luc as chairman and Jack Bowles as chief executive,” he said in a statement.
“I retire as chairman with many fond memories and the last year, in particular, has demonstrated the unwavering resolve of the people in BAT. From every level in the business, right through to our management board, ambition, talent, passion and enthusiasm are what drives BAT’s delivery. I look forward to the company’s continued success.”
April 28, 2021
TPB Ups Guidance After Strong Quarter

Image: Paulista
Turning Point Brands (TPB) reported net sales of $107.6 million and gross profit of $53.3 million for the first quarter ended March 31, 2021, up 18.7 percent and 28.6 percent, respectively. Net income increased $7.3 million to $11.8 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 57.4 percent to $28 million.
“Our first-quarter results demonstrated solid execution with year-over-year growth significantly outpacing our end markets,” said Larry Wexler, president and CEO of TPB, in a statement. “Zig-Zag led the way with a second consecutive quarter with over 40 percent growth, and Stoker’s delivered another double-digit growth quarter led by our MST business. As such, our core segments are continuing to perform well despite the tough comparables from the previous year period.
“NewGen had a solid growth quarter as it maintains optionality for long-term upside through its PMTA submissions.
“We are also excited about our recent investment in Docklight Brands, which increases our exposure in the cannabis space and boosts our portfolio through the addition of the Marley CBD products line.”
Our first-quarter results demonstrated solid execution with year-over-year growth significantly outpacing our end markets.
Larry Wexler, president and CEO, TPB
With the strength of the first-quarter results, TPB is revising its guidance provided on Feb. 10, 2021.
TPB projects net sales of $422 million to $440 million (up from previous guidance of $412 million to $432 million), which assumes strong double-digit sales growth for Zig-Zag products (up from previous guidance of double-digit sales growth); high single-digit sales growth for Stoker’s products (unchanged); mid to low single-digit declines for NewGen products (up from previous guidance of mid-single-digit sales declines), which includes single-digit declines for vape distribution (up from previous guidance of double-digit declines) offset by growth in Nu-X adjusted EBITDA of $103 million to $108 million (up from previous guidance of $99 million to $105 million).
For the second quarter of 2021, TPB projects net sales of $103 million to $109 million.
April 28, 2021
SHEER Opinion on Novel Products Due Friday

Photo: andriano_cz
The European Commission’s Scientific Committee on Health, Environmental and Emerging Risks (SCHEER) is due to present its opinion on novel tobacco products Friday.
The opinion is part of an assessment of the EU Tobacco Products Directive (TPD), which will determine whether e-cigarettes will be treated the same way as traditional cigarettes.
SHEER’s preliminary opinion published in September 2020 drew strong criticism of several stakeholders who accused the EU of being selective in its findings when it comes to their health implications.
“Research in recent years, after the adoption of TPD in 2014, has become increasingly positive about e-cigarettes, always as a substitute for smoking,” Konstantinos Farsalinos of the University of Patras told Eurarchiv. “Compared to 2014, one would expect a more positive attitude. On the contrary, EU policymakers remain scientifically unsubstantiated with the risk of sabotaging the efforts to replace smoking with e-cigarettes,” he said.
Pietro Fiocchi, a member of the European Parliament from the European Conservatives and Reformists Group, expressed concern about increased smoking if the EU Commission decides to equate novel tobacco products with traditional ones.
“My impression is that the Commission is against a differentiation between traditional tobacco and reduced-risk products, and it will plan to apply the same limitations through heavy regulations and fiscal impositions,” he said.
“We all agree that not smoking at all is the best solution, but it would be detrimental if SCHEER will ignore plenty of scientific studies that show much smaller health impact of reduced-risk products versus traditional tobacco,” said Fiocchi.
April 28, 2021
Researchers Urge Ban on Cigarette Filters

Photo: bumbumbo
The public health and environmental health communities should unite to ban cigarette filters for the benefit of both people and planet, according to the authors of a study from the University of Bath that was published in Tobacco Control.
Introduced in the 1860s to prevent tobacco flakes from entering the smoker’s mouth, cigarette filters were later marketed as tool to reduce the health risks from smoking. Research shows that filters do not reduce those risks, however, and may even increase them by enabling smokers to inhale more deeply, according to the authors.
In addition, filters are an environmental hazard. Every year, an estimated 4.5 trillion cigarette filters are deposited into the environment. Discarded filters are commonly made of cellulose acetate—a plastic losing on average only 38 percent mass in two years of decomposition—and contain toxic substances that may leach into the environment.
The study’s authors are skeptical about industry efforts to develop biodegradable filters, which they say would still leach harmful chemicals into the environment if discarded improperly.
What’s more, biodegradable filters could be used to promote smoking and improve the tobacco industry’s image. “It is likely that the tobacco industry will use biodegradable filters as both a corporate social responsibility and marketing opportunity,” the authors write.
It is likely that the tobacco industry will use biodegradable filters as both a corporate social responsibility and marketing opportunity.
Study “The Filter Fraud Persists”
The researchers also take issue with innovations such as recessed filters and “crush” filters, which they say are designed to make cigarettes more appealing and help tobacco companies circumvent advertising restrictions.
According to the study’s authors, the EU Single Use Plastics Directive missed a crucial opportunity by excluding cigarette filters from its upcoming ban on single-use plastics. “In the U.K., the tobacco industry’s new responsibility for smoking-related litter clean-up has already been used as an opportunity to have in-person interaction with the government, thereby exploiting this as a loophole in the WHO FCTC treaty,” they write.
This study was carried out by Karen Evans-Reeves, Kathrin Lauber and Rosemary Hiscock and supported by Bloomberg Philanthropies Stopping Tobacco Organizations and Products project funding.
Tobacco Reporter covered filter manufacturers’ efforts to meet new environmental requirements in its March issue (see “Keeping Pace“).
April 27, 2021
JTI Accused of Stealth ‘Social’ Advertising

Photo: Panuwat D
The Bureau of Investigative Journalism has accused Japan Tobacco International (JTI) of placing stealth advertisements for its tobacco products on Facebook and Instagram in Germany. Germany bans marketing tobacco to teenagers, and the social media platforms prohibit ads or branded content that promotes tobacco-related products.
JTI reportedly set up social media pages that look like lifestyle groups, appearing to center on events, travel and music. The pages were said to promote Camel, American Spirit and Winston cigarettes.
According to the Bureau of Investigative Journalism, “These pages—which are listed under ‘festival’ and ‘community’ in Facebook’s transparency section—use the fonts, color schemes and imagery associated with the brands without making any affiliation explicit, a technique known as alibi marketing.
“The practice appears designed as a workaround to skirt both Facebook’s rules and the German law stating that it is ‘illegal to use promotional information that is likely to encourage juveniles and young adults to engage in [tobacco] consumption.’”
“Our social media accounts represent customary activities within our industry,” JTI responded. “We use age restriction options on our platforms so that minors cannot visit our pages. Our closed communities are only accessible to registered adult smokers.”
The pages require users to enter their names, dates of birth and addresses, which are checked against official German records.
Facebook said no ad brought to its attention violated its policy.
April 27, 2021
Taat Lifestyle now Taat Global Alternatives

Photo: Taat Global Alternatives
Taat Lifestyle & Wellness will change its name to Taat Global Alternatives effective as of the commencement of trading on April 28, 2021.
There will be no change to the symbol, and the company’s common shares will continue to trade under the ticker “TAAT” on the Canadian Securities Exchange.
“Now that we have gained momentum in the $814 billion global tobacco industry, we have determined it to be important to ensure the most prominent identifying attributes of the company reflect our mission and business objectives,” said Setti Coscarella, Taat CEO, in a statement. “Last week, we announced our Beyond Nicotine initiative based on reports that the Biden administration plans to take action to reduce nicotine content in tobacco cigarettes sold in the United States.
“Our value proposition is built around offering a better alternative for smokers aged 21-plus, giving them the choice to keep the experiences they enjoy while leaving nicotine behind. With over 1.3 billion users of tobacco worldwide, we believe Taat and its Beyond Tobacco base material are relevant globally, which led to our board of directors agreeing on the updated name.”
Earlier this week, Taat applied for a Nasdaq listing.
April 27, 2021
Lessebo Paper Certified “Cradle to Cradle”

Image: Lessebo Papers
Lessebo Paper has achieved a Cradle to Cradle Certified Gold award for its white ranges of uncoated, premium graphical papers, Lessebo Design and Scandia 2000. End users can thus not only support their own sustainability strategy but also give consumers who are looking for a sustainable solution a decision-making aid. Lessebo Paper has been producing paper since 1693, making it one of the oldest paper manufacturers in Sweden.
The company focuses on innovative graphic papers in the premium segment.
Cradle to Cradle Certified is a globally recognized measure of safe, sustainable products made for the circular economy. To receive certification, the products are assessed for environmental and social performance across five critical sustainability categories: material health, material reutilization, renewable energy, water stewardship and social fairness.
To be awarded with the gold award, gold standards must be met in all categories.
“Our products have once again been proved to be a leader in sustainability,” says Eric Sigurdsson, CEO at Lessebo Paper, in a statement. “Being the first paper producer worldwide to receive Cradle to Cradle Certified at Gold level for our uncoated paper products is a big achievement and has been made possible by our focus on sustainability. This is clearly showing that our paper is one of the most climate-friendly paper qualities in the world.”
The paper is produced from totally chlorine-free pulp and has a minimal carbon footprint. It is especially suitable for printing materials where quality and sustainability are of importance, two factors that are key values of the Lessebo brand.
The manufacturer has a long history in Sweden and a track record when it comes to sustainability. Starting in 1662 as an iron mill, the company soon began to focus especially on paper production. And though Lessebo Paper has significantly grown over the years, its tradition and core value—to develop high-performance and environmentally responsible papers and boards—has persisted.
The continuing improvement on every level of production as well as the use of certified management systems has made Lessebo Paper one of the world’s most environmentally friendly paper mills, with emissions at 22 kg per metric ton of finished product—more than 96 percent lower than an average producer of graphical paper.
This commitment has over the years also been acknowledged by the industry: Lessebo Paper is qualified with many sustainability certificates, like the EU Ecolabel for its Lessebo Recycled paper range, the Forest Stewardship Council for several of its paper and board ranges and now also with the Cradle to Cradle Certificate.
In addition, Lessebo Paper had its white ranges of uncoated paper, Lessebo Design and Scandia 2000, assessed in the category of material health and was awarded a platinum level material health certificate by the Cradle to Cradle Products Innovation Institute. This means that all ingredients and process chemicals have been evaluated and accepted by the organization.
April 27, 2021
Lawmakers Propose Federal Vapor Tax

Photo: Innovated Captures
Lawmakers have introduced into the U.S. Senate a bill that would establish a federal tax on vaping products and increase the traditional tobacco tax rate for the first time in a decade, reports CStoreDecisions.
The Tobacco Tax Equity Act of 2021 aims to “close tax code loopholes for tobacco products by increasing the federal tax rate on cigarettes, pegging it to inflation to ensure it remains an effective public health tool and setting the federal tax rate for all other tobacco products at this same level.”
“Tobacco-related disease accounts for one out of every five deaths in America, and I know that story firsthand,” Senate Majority Whip Dick Durbin was quoted as saying. “Data shows that the most effective strategy to prevent children from starting this deadly habit is to price it out of their range. This bill would help reduce tobacco and e-cigarette use by ending loopholes that the industry has exploited to target our children. If America can kick its nicotine addiction, it would go a long way to improving our public health for generations to come.”
“Loopholes in our tax code continue to favor big tobacco while the American public, especially our youth, pays the price,” said Representative Raja Krishnamoorthi. “The Tobacco Tax Equity Act increases taxes on cigarettes and finally imposes taxes on the e-cigarettes hooking our children on nicotine, which would generate billions of dollars in federal revenue. As a father of a high schooler and middle schooler, I’m determined to make sure we end the youth nicotine and vaping epidemic.”
According to CStoreDecisions, The Tobacco Tax Equity Act of 2021 is endorsed by the Campaign for Tobacco-Free Kids, the American Academy of Pediatrics, the American Lung Association, the American Heart Association, the American Cancer Society Cancer Action Network, the American Public Health Association, the National Association of County and City Health Officials, the Trust for America’s Health and the American Thoracic Society.
April 26, 2021