Author: Staff Writer

Stora Enso Releases Interim Report

Stora Enso’s headquarters in Helsinki
Stora Enso reported sales of €2.28 billion ($2.75 billion) in the first quarter of 2021, up 3 percent from the previous year’s quarter due to higher deliveries and prices. Operational earnings before interest and tax (EBIT) increased to €328 million due to lower costs. Operational EBIT margin increased to 14.4 percent from 8.1 percent. Operating profit (IFRS) decreased to €161 million.
Cash flow from operations amounted to €185 million. Cash flow after investing activities was -€9 million. The net debt to operational earnings before interest, taxes, depreciation and amortization EBITDA ratio was 2.3.
“For the year’s first quarter, I am pleased to deliver yet another solid result, and we are getting back on track with many of our financial targets,” said Stora Enso President and CEO Annica Bresky in a statement.
“For the full year, the demand outlook continues to be healthy for all businesses except for paper. The operational EBIT in 2021 is expected to be higher than in 2020. We are ahead of plan with our €400 million profit protection program, and it will be concluded already by the end of the second quarter 2021.”
Earlier this month, Stora Enso announced a plan to permanently cease pulp and paper production at its Kvarnsveden and Veitsiluoto mills due to overcapacity resulting from declining demand.
“Closing operations that impact our staff is always a last resort, and one based on thorough evaluations,” said Bresky. “However, in order to remain competitive in a rapidly declining paper market, the closing of unprofitable assets is needed.”
April 26, 2021
UKVIA Surveys Vapor Industry About Logistics

Photo: Andrey Popov
The U.K. Vaping Industry Association (UKVIA) has launched an online logistics survey for the vaping industry.
This action follows the decision of several delivery companies to stop carrying shipments of vaping products.
Reports have involved leading providers such as DHL, UPS and FedEx, resulting in varying degrees of disruption to deliveries in recent months. The UKVIA is keen to learn if any disruption is affecting products imported from countries within the European Union or if products imported from China and the USA are also being held up.
“The UKVIA is extremely concerned to hear of any disruption to deliveries of vaping products experienced by our members or any other businesses in the sector,” said John Dunne, director general of the UKVIA.
“We will be closely looking into the response to this survey to gauge the severity of the problems faced by businesses. The UKVIA will then be in a better position to take up these concerns on behalf of our members and the wider industry. I would encourage everyone eligible to take part in the survey or to get in contact with the UKVIA directly to flag up any individual logistics issues.”
The survey is at www.surveymonkey.co.uk/r/2YYZYJW.
April 26, 2021
Taat Lifestyle Applies for Nasdaq Listing

Setti Coscarella
Taat Lifestyle & Wellness has submitted an initial application for its common shares to be listed on the Nasdaq Capital Market in the United States.
Last month, the company’s common shares had been upgraded from the OTCQB Venture Market to the OTCQX Best Market.
“Ever since Taat became publicly traded on June 22, 2020, we have made great strides in our efforts to gain market share in the $814 billion global tobacco industry,” said Taat CEO Setti Coscarella in a statement.
“Between listings in American and European markets as well as our rapid ascension of the ranks in the OTC markets, I believe we have consistently strengthened our value proposition to investors around the world as a firm positioned to create long-term value in providing a better alternative to tobacco cigarettes for smokers aged 21-plus.
“We look forward to working with Nasdaq Inc. in navigating this application process, as I believe being listed on the Nasdaq Capital Market could considerably strengthen our long-term prospects as a public company.”
Marissa Dean profiled Taat in Tobacco Reporter’s January 2021 edition.
April 26, 2021
Analysts: Nicotine Reduction Takes Time

Photo: Maksym Yemelyanov
Industry analysts expect the implementation of any plan to mandate lower nicotine levels for cigarettes sold in the U.S. to take a long time.
Tobacco stocks plunged on April 19 after The Wall Street Journal published an article suggesting the Biden administration is considering a policy that would require tobacco companies to reduce nicotine levels in cigarettes to nonaddictive levels.
Industry analysts, however, said this process will be lengthy, according to an article published by CSP.
“While we see a very long and uncertain road to establishing a legally enforceable nicotine standard, we believe there is heightened headline risk, and the likelihood for a nicotine standard to ultimately be implemented exists,” Bonnie Herzog, a managing director of Goldman Sachs, said in a research note.
If the Biden administration moves forward with its plan, Herzog said she would expect cigarette volumes to decline dramatically and more people to convert to reduced-risk products and technologies.
Nik Modi, analyst at New York-based RBC Capital Markets, said in a research note that he’s cautious of becoming too invested in potential consequences at this time because nicotine regulation is just a consideration.
If the regulation moves to the next step, the U.S. Food and Drug Administration (FDA) would have to release a notice of proposed rulemaking and consider potential consequences. At a minimum, there is a mandatory one-year to two-year delay between issuing a final rule and policy implementation, Herzog said.
Among other things, the agency would have to consider whether lowering nicotine levels would increase consumption of cigarettes because of reduced-risk perceptions, and if its policy would boost black market sales or unregulated home manufacturing.

At a minimum, there is a mandatory one-year to two-year delay between issuing a final rule and policy implementation.
Bonnie Herzog, analyst, Goldman Sachs
Commentators have already warned against unintended consequences of a low-nicotine mandate. Such a policy would stimulate illicit trade and could result in more smoking-related illness, wrote Brad Polumbo, a policy correspondent at the Foundation for Economic Education (FFEE).
“Were the amount of nicotine in cigarettes lowered by law, many people would respond by smoking more total cigarettes to get their nicotine fix. Because it is tar and other carcinogenic substances in cigarettes that cause cancer—not the nicotine itself—this would likely mean more cases of lung cancer and more premature deaths,” he wrote on the FFEE website.
What’s more, smokers unhappy with the new weak cigarettes for sale at legal outlets may turn to black markets to buy stronger variants, according to Polumbo. “Because black market dealers have little business accountability or oversight, there’s a greater chance that the products could be laced with dangerous substances or dangerously made,” he wrote.
The argument of compensatory smoking is disputed by 22nd Century Group, a company specializing in low-nicotine tobacco that stands to gain considerably from a nationwide low-nicotine mandate.
“Public health researchers have conclusively refuted the common misperception that reduced-nicotine content cigarettes could cause smokers to increase their smoking, saying, ‘Effectively compensating to maintain nicotine exposure is virtually impossible when switching to cigarettes with minimally addictive nicotine content,’ and, ‘[M]andated reduction in nicotine content is unlikely to result in an increase in smoking behavior to obtain more nicotine,’” the company wrote in a statement about the topic.

Nik Modi
Analysts also noted that policy implementation could be delayed by legal challenges from the tobacco industry. Cigarette manufacturers could challenge or sue the FDA if they think the agency isn’t acing in accordance with regulatory guidelines or overstepping boundaries, said Modi.
The current discussion about lowering nicotine dates from 2018, when the FDA introduced its Comprehensive Plan for Tobacco and Nicotine Regulation.
April 23, 2021
Zimbabwe Earns $50 million From First Sales

Photo: Taco Tuinstra
Zimbabwean leaf tobacco sales totaled $49.9 million after the first nine days of trading, compared to $24.5 million during the same period in 2020, the Tobacco Industry Marketing Board (TIMB) reported.
Leaf growers delivered 19.97 million kg during the first nine days, up 83 percent over the 10.8 million kg from like 2020. This season’s crop garnered an average price of $2.50 per kg to date, up from $2.27 per kg at this point last season.
However, farmers’ unions are displeased with current leaf prices, which dropped during the second week of the marketing season.
“The first week of this tobacco selling season saw the firming of prices above $5 per kg; some tobacco was sold at $6.30 per kg, which was paid by contractors,” said Zimbabwe Commercial Farmers Union President Shadreck Makombe. “Prices at direct auction hovered around $4.99 per kg. Every merchant was out fighting to dominate. In the second week, most contractors dropped prices. They are now buying at a discounted price. This is a big blow to most of the farmers who are contracted and are the majority of tobacco growers. They cannot sell elsewhere.”
Prior to the start of the marketing season, industry representatives expressed concern about tobacco growers’ ability to repay their debts.
April 23, 2021
Altria, Juul Likely to Face Suit Over Deal

Photo: jessica45 | Pixabay
Altria Group and Juul Labs will likely face a proposed antitrust action seeking to unwind a $12.8 billion deal that gave the tobacco giant a 35 percent stake in the vapor company, reports Bloomberg Law, citing a “tentative” ruling by a federal judge in San Francisco.
Judge William H. Orrick indicated Wednesday that he’s inclined to let most of the lawsuit move forward in the U.S. District Court for the Northern District of California, where it was consolidated after dozens of antitrust plaintiffs sued over deal clauses calling for Altria’s exit from the vaping market.
The Federal Trade Commission has also sued over the Altria-Juul transaction.
April 23, 2021
Smoker Group Forest to Host Webinar on Vaping

Simon Clark
To mark the last week of VApril, the U.K.’s annual vaping awareness month now in its fourth year, the smokers’ lobby group Forest is hosting a webinar on April 28 to discuss “Should smokers switch to vaping?”
“E-cigarettes have been a mainstream consumer product for the best part of a decade, and vaping is credited with encouraging millions of smokers to switch to what evidence suggests is a significantly reduced-risk product,” says Forest director Simon Clark.
“Despite that, millions more seem resistant to switching, and the latest figures suggest that the number of vapers in the U.K. may have fallen from a peak of 3.6 million to 3 million. The question is, why?”
Speakers at the virtual meeting include John Dunne, CEO of the U.K. Vaping Industry Association; Joe Dunne, spokesperson for Respect Vapers in Ireland; and Daniel Pryor, head of programs at the Adam Smith Institute think tank.
“Confirmed smokers are often excluded from public debates about vaping and smoking cessation,” says Clark. “It’s misguided because their views are essential to understanding why more smokers don’t want to quit or switch.
Confirmed smokers are often excluded from public debates about vaping and smoking cessation.
Simon Clark, director, Forest
“We believe adults should have the freedom to make informed choices, so this is an opportunity for confirmed smokers to learn more about reduced-risk products, and for vaping advocates to understand why many smokers still prefer combustible tobacco and to respect that choice.”
Forest’s webinar will take place on April 28 from 18:00–19:00 U.K. time.
For further information and to register, click here.
April 23, 2021
Board Authorizes 97 Million kg for Karnataka

Photo: Tobacco Reporter archive
The Tobacco Board of India has authorized a 2021–2022 crop of 97 million kg for Karnataka, 9 million kg more than in the previous growing season, reports The Times of India.
“We have decided to fix the crop size of Karnataka at 97 million kg keeping in view the demands of growers as well as traders,” said board Chairman Raghunatha Babu, adding that the board had also taken into consideration global demand.
The board had originally authorized a 99 million kg crop for Karnataka in 2020–2021. However, after considering the seriousness of the Covid-19 pandemic, it reduced the crop size to 88 million kg.
Some analysts expressed surprise at the crop size increase, given that global demand for tobacco has slipped in the wake of the pandemic.
Tobacco growers who switched to producing ginger following the crop size reduction reportedly suffered heavy losses, increasing pressure on the board to increase the crop size for 2021–2022.
Meanwhile, tobacco growers in Andhra Pradesh threatened to stall auctions from Monday if there is no marked improvement in the prices offered for their produce, according to a report in The Hindu.
Due to the rising number of Covid-19 cases and uncertain global demand situation, exporters have adopted a wait-and-see approach, citing a lack of confirmed orders.
“We were hoping to recoup the losses incurred last year as the virus-induced lockdown coincided with the peak marketing season, said farmers’ representative Mareddy Subba Reddy.
“We will not hesitate to stall the auction from next week if the market continues to remain lackluster, said V.V. Prasad, a farmer’s welfare association leader at the Ongole II auction platform.
To date, Andhra Pradesh famers have marketed only 12.5 million kg of their 70 million kg crop. The 6.5 million kg Southern Light Soils tobacco sold earned a price of INR167 ($2.23) per kg while the 6 million kg Southern Black Soils tobacco sold for INR165 per kg, according to the Tobacco Board.
April 23, 2021
Covid Paper Retracted Over Industry Links

Photo: Soloviova Liudmyla
The European Respiratory Journal has retracted a scientific paper claiming current smokers are 23 percent less likely to be diagnosed with Covid-19 compared to nonsmokers after it was discovered some of the paper’s authors had financial links to the tobacco industry, reports The Guardian.
The World Health Organization has warned that because smoking impairs lung function, there is an increased risk of severe symptoms if respiratory infections, including coronaviruses, are acquired by smokers. Covid-19 is an infectious disease that primarily attacks the lungs.
But the paper, published in July last year by the European Respiratory Journal, found “current smoking was not associated with adverse outcome” in patients admitted to hospital with Covid-19 and claimed smokers were at a significantly lower risk of acquiring the virus.
The article was originally published “early view” on July 30, 2020. Subsequent to this, and prior to publication of the version of record in an issue of the European Respiratory Journal, it was brought to the editors’ attention that two of the authors had failed to disclose potential conflicts of interest at the time of the manuscript’s submission.

I disagree with the retraction, and I consider it unfair and unsubstantiated.
Konstantinos Farsalinos, senior author
Jose M. Mier at the time provided consultancy services to the tobacco industry on tobacco harm reduction. Konstantinos Poulas at the time was a principal investigator for the Greek NGO NOSMOKE, a science and innovation hub that has received funding from the Foundation for a Smoke-Free World, which in turn has received funding from the tobacco industry.
After careful review of the manuscript content alongside the new disclosures brought to light, the editors and society agreed that if these conflicts of interest had been disclosed at the time of manuscript submission, the editors would not have considered the article for publication.
The European Respiratory Society has bylaws in place that do not permit individuals with ongoing relationships with the tobacco industry to participate in its activities.
The editors of the European Respiratory Journal acknowledged that, aside from the failure of two contributing authors to disclose their conflicts of interest relating to the tobacco industry, at no point was there a question of any scientific misconduct on the part of any of the authors.
The senior author of the paper, Konstantinos Farsalinos, said in a statement to the website Retraction Watch that the conflicts of interest “were irrelevant to the study’s main aims and objectives.”
“Additionally, I proposed to publicly release the full dataset and the statistical script so that all findings could be independently verified,” he said. “The editors declined. I requested my proposal to be mentioned in the retraction letter, but that was also rejected by the editors. I disagree with the retraction, and I consider it unfair and unsubstantiated.”
April 22, 2021
Charlie’s Pachamama Sell Out in 21 Days

Brandon Stump
(Photo: Charlie’s Holdings)
Charlie’s Holdings has sold its entire initial stock of Pachamama Disposables e-cigarettes in fewer than 21 days, making Pachamama the fastest-selling new product in the company’s history, according to a press release.
“It is estimated that more than 20 percent of the world’s population consumes nicotine in some format,” said Brandon Stump, CEO of Charlie’s Holdings. “We believe that our new technologies and products can provide adult consumers with a better, more responsible and therefore more enjoyable means of experiencing nicotine.
“Now that we have launched Pachamama Disposables in the United States, later this year, our distribution will expand into more than 75 international markets, where we expect to introduce millions of adult consumers to the extraordinary Pachamama sensory experience. We are very excited about what this launch—and the new $600 million market opportunity—will mean for our customers and our company.”

We are very excited about what this launch—and the new $600 million market opportunity—will mean for our customers and our company.
Brandon Stump, CEO, Charlie’s Holdings
Earlier this month, Charlie’s Holdings raised $3 million through the private sale of common stock to the company’s founders, Brandon Stump and Chief Operating Officer Ryan Stump. The company intends to use the proceeds from the offering to drive substantial future growth, facilitate new product launches, increase working capital, retire outstanding debt and for other general corporate purposes.
The proceeds from the private placement will strengthen the company’s balance sheet, accelerate European growth, allow for expansion into the Middle East and facilitate the company reaching several important near-term milestones, including FDA approval of Charlie Holdings’ premarket tobacco product application.
April 22, 2021