Author: Staff Writer

Stora To Close Mills in Sweden and Finland

Stora Enso’s Kvarnsveden Mill in Sweden (Photo: Stora Enso)
Stora Enso will start negotiations with employees at its Kvarnsveden Mill in Sweden and Veitsiluoto Mill in Finland regarding a plan to permanently close pulp and paper production at both mills. The planned closures would take place during the third quarter of 2021 and directly affect 670 people in Finland and 440 people in Sweden.
Paper demand in Europe has declined for more than a decade. This trend has further accelerated due to the pandemic, which has led to changes in consumer behavior. As a consequence, there is a significant overcapacity in the European paper market, which has resulted in historically low price levels and challenged the cost competitiveness of many paper mills. Both Kvarnsveden and Veitsiluoto mills are loss-making, and Stora Enso expects their profitability to remain unsatisfactory.

This is heavy news for our company and our colleagues at Veitsiluoto and Kvarnsveden mills.
Annica Bresky, president and CEO, Stora Enso
“This is heavy news for our company and our colleagues at Veitsiluoto and Kvarnsveden mills,” said Annica Bresky, Stora Enso’s president and CEO, in a statement.
“Our people at the sites are very competent and have done their utmost during very difficult circumstances. Unfortunately, in the rapidly declining paper market, we need to adjust our production capacity to improve the competitiveness of our total paper business. This sadly means the closure of unprofitable assets.”
“We have examined several options to improve the financial situation for Veitsiluoto and Kvarnsveden mills,” said Kati ter Horst, executive vice president of Stora Enso’s paper division. “However, none of these options have proved feasible in ensuring a cost competitive future for the mills. If there was a decision to close down the mills, we would work closely together with other Stora Enso locations, the cities of Kemi and Borlange, and other stakeholders to support in re-employment and training of the affected employees. We would also actively engage in discussions to find alternative future uses for the mill sites. Throughout this process, we will serve our customers in the best possible way.”
The planned mill closures would reduce Stora Enso’s paper production capacity by 35 percent to 2.6 million tons per year.
April 21, 2021
Report Explores China’s Tobacco-Heating Market

Photo: David Mark from Pixabay
Research and Markets has published a new report on the world’s largest potential market for heat-not-burn (HnB) products—China.
The report provides an overview of China National Tobacco Corp. (CNTC) subsidiaries’ HnB marketing activities from 2017 to 2020.
The report reviews all HnB products that were officially released in domestic and foreign markets as well as cooperation ties in the Chinese HnB market.
China Tobacco has a market of 300 million smokers with a significant part being active HnB users. The domestic HnB sector is dominated by CNTC. It has launched HnB products in Sichuan, Yunnan, Guangdong, Anhui, Hubei, Heilongjiang and other provinces and has been actively engaged in overseas markets. CNTC HnB brands are presented in many foreign markets, mostly in Asian countries and eastern Europe.
Most HnB devices are promoted with dedicated consumables. HnB devices are either produced at facilities of CNTC subsidiaries or are OEM versions developed by third-party manufacturers. The CNTC subsidiaries with the largest number of HnB devices in the domestic market are based in Sichuan, Yunnan and Guangdong.
The report includes a brief review of HnB electronic devices produced in cooperation with major Chinese hardware manufacturers. There is also a brief description of companies engaged in the Chinese HnB market, and a complete list of HnB products with release dates and corresponding references in domestic and foreign markets, a map of presence of CNTC HnB brands in foreign markets and a timeline of CNTC HnB products by release date.
April 21, 2021
Turning Point Brands invests in Docklight
Turning Point Brands (TPB) has announced an $8.7 million strategic investment in Docklight Brands, a pioneering consumer products company with brands including Marley Natural cannabis and Marley CBD. In addition, TPB has obtained exclusive U.S. distribution rights for Docklight’s Marley CBD topical products. The investment into Docklight Brands’ Series A offering comes with certain follow-on investment rights.
As a result of this transaction, Turning Point Brands now has access to two iconic names in cannabis: Bob Marley and Zig-Zag. The Marley CBD skincare line, which includes after-sun, hand cream, lip balm, balm and roll-on products, combines tropical botanicals with hemp-derived CBD and is currently available nationwide in the U.S. in over 12,000 stores, including select 7-Eleven, Circle K, Safeway and Dollar General locations, with additional availability expected through TPB’s partner network.
The company’s investment into Docklight will also support the growth of the broader Marley CBD line, including Marley Mellow Mood teas, Marley wellness shots and Marley chocolate squares as well as Marley Natural THC products, which are produced and sold under license agreements in Canada, Jamaica and select U.S. states.
“Our goal is to build an expansive portfolio of the most innovative brands in the cannabis industry and to distribute these products across our vast partner network,” said Larry Wexler, CEO of Turning Point Brands, in a statement.
We are confident our strategic relationship with Turning Point Brands will greatly enhance both the visibility and availability of the Marley products across TPB’s extensive distribution network.
Damian Marano, CEO, Docklight Brands
“We reach consumers where they are most comfortable, selling products to distributors, selling to stores directly and interfacing with consumers one-on-one via e-commerce. Adding Marley products to our portfolio alongside our legacy Zig-Zag brand marks yet another milestone as we continue to leverage our brands and expand our distribution infrastructure.”
“Given our shared focus on branded products, we are excited to expand the reach of the iconic Bob Marley brand. We are confident our strategic relationship with Turning Point Brands will greatly enhance both the visibility and availability of the Marley products across TPB’s extensive distribution network,” said Damian Marano, CEO of Docklight Brands.
April 21, 2021
U.S. House Passes Cannabis Banking Bill

Photo: Feelgoodsk | Dreamstime.com
The U.S. House of Representatives on April 19 passed legislation that would allow banks to serve cannabis companies in states where it is legal, reports Reuters.
The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how they would supervise such banking activity.
Banks have generally been unwilling to do business with companies that sell marijuana or related products, fearing they could run afoul of federal laws.
That has left companies in the marijuana industry with few options, including relying on just a handful of small financial institutions or doing business in cash.
Thirty-six states have legalized medical cannabis while 17 states now allow adult use, according to the National Conference of State Legislatures.
Lawmakers voted 321-101 to approve the bill and send it to the Senate.
April 21, 2021
Malawi President Urges Diversification

The tobacco sales floors in Lilongwe (Photo: Taco Tuinstra)
Malawi’s President Lazarus Chakwera wants tobacco farmers to switch to other cash crops because he sees no future in the golden leaf, reports The Voice of America.
At the opening of tobacco selling season on Tuesday, Chakwera said Malawi should switch to other cash crops like cannabis, which was legalized last year for industrial and medicinal use. In preparation for cannabis cultivation, the country recently created a Cannabis Regulatory Authority.
Tobacco currently contributes more than 60 percent of the country’s export earnings, but demand for the leaf has been declining due to growing health awareness and global anti-smoking campaigns.
“We need an exit strategy to transition our farmers to crops that are more sustainable and more profitable,” Chakwera said.
“I am therefore calling on the Ministry of Agriculture to begin consultations with all stakeholders to come up with a timeframe within which Malawi’s economy will be completely weaned from tobacco.”
We need an exit strategy to transition our farmers to crops that are more sustainable and more profitable.
Lazarus Chakwera, president, Malawi
In the meantime, Malawi should promote greater competition in the tobacco industry by attracting more leaf buyers beyond the current nine, Chakwera said, suggesting that competition would increase prices.
In March, Malawi’s government signed an agreement with tobacco leaf buyers and set a minimum price of about $2.30 per kg. In the past, buyers would offer as little as $0.50 per kg of tobacco.
Skeptics said it could be difficult for tobacco farmers to switch to cannabis, citing skills and climate conditions, among other considerations.
Tobacco Reporter detailed the challenges facing Malawi’s tobacco sector in its July 2017 print edition (See “On the Map.”)
April 21, 2021
Shares Slide on Nicotine Reduction Discussions

Photo: Tumisu from Pixabay
Shares in big tobacco companies plunged on Tuesday following reports that the U.S. government may allow only cigarettes with nonaddictive levels of nicotine and may also ban menthol, reports Bloomberg.
Altria Group fell 6.9 percent Tuesday, losing more than $11 billion in market value since Friday. British American Tobacco (BAT) dropped 8.3 percent in London Tuesday. Analysts estimate BAT derives up to a third of its earnings from menthol brands such as Newport.
In Asia, Japan Tobacco’s stock was near 2 percent lower. Philip Morris International shares, however, ended the day up over 2 percent and the company reported strong results on Tuesday; the company does not sell cigarettes in the U.S.
On Monday, The Wall Street Journal reported that President Joe Biden’s administration is considering new regulations requiring tobacco companies to reduce the nicotine levels in cigarettes sold in the U.S. to the point at which the products are no longer addictive.
Meanwhile, the administration faces a deadline over whether to ban menthol flavoring in traditional and electronic cigarettes.
While the established tobacco sellers took a stock market hit following the news, shares in 22nd Century Group jumped, according to The Motley Fool. The company genetically modifies tobacco plants to contain less nicotine, enabling it to offer low-nicotine cigarettes, alongside growing reduced-cannabinoid cannabis.
22nd Century has staked its existence on persuading the FDA to approve the company marketing and selling very low-nicotine traditional cigarettes. In a press note, 22nd Century said it was prepared to license its reduced nicotine content tobacco technology to every cigarette manufacturer.
April 21, 2021
22nd Century Excited About Nicotine Cuts

Photo: Tobacco Reporter archive
22nd Century Group said that it is fully prepared to partner with the U.S. Food and Drug Administration (FDA) to launch its VLN reduced nicotine content cigarette brand and license its reduced nicotine content tobacco technology to every cigarette manufacturer.
Recent media reports suggest that the Biden administration is actively considering moving forward the Advance Notice of Proposed Rulemaking (ANPRM) that will require tobacco manufacturers to reduce the amount of nicotine in all combustible cigarettes sold in the United States to be “minimally or nonaddictive.”
“A nicotine cap by the FDA has been in the works since the Obama administration,” said James A. Mish, CEO of 22nd Century Group, in a statement. “During that time, 22nd Century has consistently proven beyond any doubt with our VLN cigarettes that a cigarette that contains nicotine levels that the FDA has identified as ‘minimally or nonaddictive’ is technically feasible. Moreover, given the millions of Americans who smoke and will suffer and die from cigarette addiction, this mandate is necessary and appropriate.”
“As the only company with the ability to offer a combustible tobacco product that can meet the FDA’s mandate today, we look forward to helping with this critical public health initiative.
“Numerous independent research studies—largely funded by U.S. government agencies—have consistently confirmed the benefits of implementing a mandate on reduced nicotine content cigarettes for adult smokers.
“Once this rule is in place, we are fully prepared to provide the solution by making our VLN cigarettes available to adult smokers, and we remain willing to license our technology to every cigarette manufacturer in the industry to give them the opportunity to join us in our efforts to reduce the harm caused by smoking and to protect future generations from ever becoming addicted to cigarettes.”
We are fully prepared to provide the solution by making our VLN cigarettes available to adult smokers, and we remain willing to license our technology to every cigarette manufacturer.
James A. Mish, CEO, 22nd Century Group
The ANPRM that President Biden’s administration is considering moving forward was issued in March of 2018, and the comment period closed in June of 2018. The FDA will likely issue a notice of proposed rulemaking as the next step in the rulemaking process before a final rule is published.
Made from proprietary tobacco engineered to contain 95 percent less nicotine than conventional cigarette tobacco, 22nd Century’s RNC cigarettes are the only combustible tobacco products able to meet the nicotine levels proposed in the FDA’s ANPRM for a tobacco product standard to reduce the nicotine content of all combustible cigarettes, according to 22nd Century.
The company believes that it is in the final stages of the FDA’s application process to obtain a modified-risk tobacco product designation for its reduced nicotine content cigarettes, VLN King and VLN Menthol King. The designation will allow 22nd Century to communicate key features of the products, including the claim “95 percent less nicotine.”
April 20, 2021
Cannabis Consumers Types Identified
Picture: Riel Roussopoulos from Pixabay
The legal cannabis market is expected to increase more than 200 percent by 2025. According to research by Euromonitor International, the market will rise from $30 billion in 2020 to over $90 billion in 2025 as consumers increase their usage in diverse parts of their lives.
In a recent white paper, Breaking Stereotypes: Getting to Know the Cannabis Consumer, Euromonitor explores six adult cannabis consumer archetypes making up the emerging legal cannabis consumer base in 2021.
The report lists the six archetypes as:
The Seasoned Consumer: Long-time regular consumers who use cannabis to enhance their well-being. Twenty-four percent of these consumers suffer from high or extreme stress while 64 percent are strongly in favor of recreational legalization.
The Casual Social: Younger, newer consumers leveraging cannabinoid products as part of their wider lifestyles. Seventy-five percent of them take vitamins or health supplements at least monthly while 61 percent are strongly in favor of recreational legalization.
The Dabbler: Occasional cannabis users, familiar and comfortable with the substance but unlikely to see it as a key part of their lifestyle. Sixty-eight percent are in favor of its legalization for medical use while 45 percent believe legal cannabis should be at least as widely available as tobacco and alcohol.
The Canna-curious: A broad consumer group with an interest in adult-use cannabis consumption if legalized in their countries but with limited knowledge about cannabinoid products. Fifty-six percent are in favor of legalization for medical use while only 43 percent support adult-use liberalization.
The Unsparked: Consumers who are outwardly negative toward cannabis use but express enough uncertainty that many could be persuaded to engage further. Eighteen percent of these consumers believe that cannabis is unsafe while 8 percent see cannabis as something that enhances a user’s lifestyle.
The Naysayer: Strongly against adult use—only 8 percent are in favor of legalization—they are not an immediate target for producers and brand owners. Fifty-one percent state that they either have no or low levels of daily stress—the least stressed of all profiles.
As legalization expands and the normalization of cannabinoid use continues, organizations need to understand the motivations of the modern cannabis consumer and look beyond typical stereotypes.
Shane MacGuill, senior industry manager for Nicotine and Cannabis, Euromonitor
Seasoned cannabis consumers are established, long-standing and often traditionalist cannabis users “who will form the backbone of the legal industry” as it evolves, according to MacGuill. Companies need to understand and address the priorities of this group without alienating newer consumers whose product and brand priorities are often divergent, he notes.
“As legalization expands and the normalization of cannabinoid use continues, organizations need to understand the motivations of the modern cannabis consumer and look beyond typical stereotypes,” says MacGuill. “The legal cannabis industry must mirror the views and values of its consumers, given its history and the nature of its often countercultural evolution. Industry players can only achieve this with a nuanced segmentation and holistic understanding of participants in the sector.”
April 20, 2021
KT&G Helps Farmers Affected by Covid-19

Photo: KT&G
KT&G provided a leaf tobacco planting service in Jecheon, Chungcheongbuk-do, to help leaf tobacco farmers struggling due to manpower shortages in the aftermath of the Covid-19 pandemic.
Employees of KT&G’s Raw Materials Headquarters and Gimcheon Plant, who participated in the volunteer work, visited a leaf tobacco farm in Baegun-myeon, Jecheon-si, Chungcheongbuk-do, where they helped raise and plant seedlings in farmland of about 10,000 square meters.
“In addition to the declining population and aging population in rural areas, labor shortages have worsened due to the Covid-19 pandemic, and farmers are experiencing great difficulties,” said Shin Sang-ho, head of KT&G’s raw materials division, in a statement.
“KT&G has been working to alleviate the grievances of farmers by deploying leaf tobacco planting and harvesting volunteers every year and will continue to strive for win-win growth with farmers through various activities.”
In addition to the declining population and aging population in rural areas, labor shortages have worsened due to the Covid-19 pandemic.
Shin Sang-ho, head of KT&G’s raw materials division
KT&G is the only tobacco company operating in Korea to purchase domestic leaf tobacco and is making various efforts to protect farm households, such as prepaying 30 percent of the sales price of leaf tobacco for each farmer in cash. In addition, from 2013 to the present, the company has provided health checkups for farmers and scholarships for their children.
April 20, 2021
U.S. Mulls Low-Nicotine Mandate/Menthol Ban

Photo: Tobacco Reporter archive
The Biden administration is considering requiring tobacco companies to reduce nicotine levels in all cigarettes sold in the United States, reports The Wall Street Journal. The nicotine-reduction policy would lower the chemical in cigarettes to nonaddictive or minimally addictive levels and aim to push smokers to quit or switch to less harmful alternatives, the newspaper said.
Meanwhile, a deadline is nearing for the U.S. Food and Drug Administration to decide on whether to ban menthol cigarettes. The menthol ban would aim to curb smoking initiation among young people, many of whom start with menthol cigarettes.
According to the FDA, menthol cigarettes may be harder to quit than nonmenthol cigarettes, particularly among African American smokers. More than 19.5 million people reportedly smoke menthol cigarettes.
The tobacco industry has rejected the FDA’s findings on menthol, and both policies would take years to implement and would likely face legal challenges.
On April 12, 2013, health groups filed a petition calling on the FDA to ban menthol in cigarettes. Nearly seven years later, one of the co-signers, the African American Tobacco Control Leadership Council, filed a lawsuit alleging, among other things, the FDA unreasonably delayed issuing a final response to the citizen petition.
The FDA agreed to issue a final response to the petition by Jan. 29.
Then, a supplemental petition with additional research on the alleged harms of menthol cigarettes was submitted in January.
After the additional information was submitted, the parties agreed to extend the FDA’s deadline to issue a final response to April 29.
Recent news reports suggest the likelihood of a menthol ban in the U.S. is increasing.
Shares of tobacco giant Altria Group plunged on Monday following The Wall Street Journal report, according to CNN.
“A ban on menthol cigarettes or reduction in nicotine levels would fundamentally disrupt the U.S. cigarette market and would be credit negative for Altria as it would significantly accelerate cigarette volume decline,” said Maria Iarriccio, vice president and lead analyst for Altria at Moody’s Investor Service.
“Approximately 20 percent of Altria’s cigarette sales are menthol flavored. Also, a reduction of nicotine levels in cigarettes would be challenged by tobacco companies in courts and would take years to resolve.”
“Altria is focused on growing alternative products in the U.S., such as oral tobacco, e-vapor through its Juul investment and IQOS heated-tobacco,” Iarriccio added. “However, these alternative products contribute a small part to Altria’s existing business and will not offset the material decline in revenue should a ban be implemented.
April 20, 2021