Author: Staff Writer

  • Focusing Minds

    Focusing Minds

    Photo: Pexels from Pixabay

    The post-Brexit review of tobacco regulations provides an opportunity to hasten smokers’ transition to less-harmful nicotine products.

    Writing in The Guardian on Jan. 13, associate editor and columnist Martin Kettle wrote that “in almost every material respect the U.K. is currently worse off than before 1 January.” He was, of course, commenting on Brexit, about which the government, in the words of the late music hall comedian, Billy Russell, can be said to have “promised us everything, given us nothing and, before we got it, taken it off us.” There is no Brexit dividend, only a growing Brexit deficit, which can be clearly seen even though the government is trying to brush it under the carpet laid down by the Covid-19 pandemic.

    Having said that, perhaps there is at least the potential for a dividend in one specific area. There seems to be a chance that the U.K. government, which has for many years been supportive of the idea of tobacco harm reduction, might, after emerging from under the stultifying EU Tobacco Products Directive, develop tobacco and nicotine regulations fit for an age that has left behind the failed idea of quit-or-die and embraced the development of a range of new generation products that are less risky to consume than are combustible cigarettes.

    Certainly, the U.K. Vaping Industry Association [UKVIA] believes there is such an opportunity. On March 15, it launched its Blueprint for Better Regulation in response to the U.K. government’s consultation on the Tobacco and Related Products Regulations (and the Standardized Packaging of Tobacco Products Regulations), in which it was seeking until March 19 feedback on the effectiveness of the legislation in achieving its objectives, and on any unintended consequences that may have occurred.

    In a foreword to the Blueprint, the UKVIA’s director general, John Dunne, said the review of the regulations represented a defining moment in the history of the vaping industry, one of the leading market disruptors of the 21st century responsible for a significant decline in smoking across the U.K. It also presented the biggest opportunity yet for the government to create fair and proportionate vaping regulation that supported its 2030 smoke-free target and ensured the sector could make a bigger contribution to the nation’s public health and economy in the future.

    To achieve such a goal, the UKVIA is recommending that the government takes an evidence-based approach to revising regulations that would, in part, help counter the misinformation being widely disseminated about vaping: misinformation that is providing an increasingly powerful drag on efforts to encourage people to switch from smoking to vaping, even though vaping is hugely less risky and less costly than is smoking. It wants the government and health authorities to mount campaigns aimed at encouraging such switching, and it wants the industry to be able to mount its own officially sanctioned but effective, multichannel, consumer-communication campaigns, including with those buying online. And it wants a regulated but workable environment in which its members can develop vaping products capable of competing with conventional cigarettes, especially on a nicotine-satisfaction basis.

    In what might be seen as an unexpected move, but which is a smart one for an industry necessarily looking to be seen as responsible, the UKVIA is recommending that the regulations reach out to include “additional products and components,” especially nicotine-free e-liquids.

    There is, of course, much more in the UKVIA’s Blueprint. No such presentation would be complete without a discussion about the important role flavors play in encouraging people to switch from smoking to vaping and the need to address e-liquid bottle sizes so as to reduce plastic waste and improve customer convenience, while not increasing the risk-profile of the e-liquids. The Blueprint looks at packaging and labeling, descriptors, and product quality and safety. It supports age restrictions on the purchase of vaping products and the need to work with trading standards officers in ensuring such restrictions are enforced. And it recommends that the government acts in relation to vaping in public places so that vaping is not conflated with smoking.

    A firm deadline

    What are the chances? Well, Dunne appears to be confident, and, with some justification, since, to a large extent, the UKVIA is pushing at an open door. The government could be willing to work with at least some of the UKVIA’s ideas, perhaps all of them, partly because smoking is most prevalent among disadvantaged groups and the government has been saying it wants to level-up the U.K. But caution has to be advised. Two skills the U.K. government is known for are its shape-shifting and U-turns. And one concern must be the government’s likely reaction if it found that conversions to vaping picked up so fast that tax revenues from tobacco fell dramatically.

    And in this regard, I feel the UKVIA might have missed a trick, though I’m sure it must have crossed its members’ minds and, for some reason, been rejected. To cement things in place, might it not have been a good idea to ask the government to declare a date, some years ahead, on which combustible cigarettes could no longer be sold legally within the U.K.? I know that some would complain that this would be prohibition, while tagging on the rusty old argument that alcohol prohibition didn’t work in the U.S. and therefore it wouldn’t work with cigarettes anywhere. But the conflation of alcohol prohibition in the U.S. and a potential tobacco prohibition elsewhere never comprised a rational argument. And, in any case, what is being suggested is not prohibition but substitution and transition. Smokers would not be being abandoned, because they could still get a nicotine fix after cigarette sales were banned.

    One of the arguments for putting such an end date in place would be that it would focus minds. It is clear that where the automobile industry has been presented with end dates for the sale of vehicles powered by fossil fuels, manufacturers have steamed ahead and some have been encouraged to aim at beating the deadline. From combustion to batteries; there has to be a connection.

    Of course, the implementation of such a deadline in respect of combustible cigarettes would have to be dependent on regulations being changed so that those involved in the development of new-generation, tobacco-harm-reduction products could operate in a regulated but not restrictive environment. In fairness to smokers, it would need to be the case that they were presented with products that reproduced where possible at least the characteristics of smoking that most attracts them to the habit.

    There is something else, too. Switching messages listed in the Blueprint seem to be way too long: 12-21 words apiece. If there is one thing the U.K.’s Conservative Party, the party of government, is good at, it is effective messaging, which it likes to keep to three or four words. I mean, if you can get people to vote for the Conservatives with the message, “Get Brexit done,” imagine what you could do with: “Don’t smoke, vape.” And while it’s at it, why shouldn’t the government require messages on combustible-cigarette packaging that say: “Switch to vaping”; or “Get switching done.”

    Formidable opponents

    One problem in all of this is that there are some powerful forces acting against tobacco harm reduction. In March, the UKVIA issued a press note, titled, “The U.K. Vaping Industry Association [UKVIA] blasts World Health Organization and says it risks becoming an ‘enemy of harm-reduction.’” What the UKVIA objected to in the first instance was what it described as “[r]ecent recommendations made by the WHO study group on Tobacco Product Regulations that would prohibit electronic nicotine and non-nicotine delivery systems where the user can control device features and liquid ingredients.” But it said also that the WHO had called for a ban on vaping systems that have a higher “abuse liability” than conventional cigarettes have; systems that, for example, allow the user to control the emission rate of nicotine.

    Dunne made the point that vaping’s success as an industry, and its potential for public health improvements, were built on empowering personal choice. “Different systems, styles and flavors give consumers the options they need to leave combustible cigarettes behind,” he said. “I would urge the WHO to engage with vapers, to hear their stories and discover the life-changing decisions they’ve made… Prohibition is simply not the answer.”

    The U.K. has a genuine opportunity to promote harm-reduction as a valid, progressive strategy for public health on the world stage.

    Dunne believes the WHO poses a threat to smoking-cessation and harm-reduction in the U.K. because it is out of touch. He said, for instance, that the WHO claimed there was little evidence that vaping helped people to quit smoking. But Public Health England had found in its Vaping Evidence Review 2021 that smoking quit rates involving a vaping product were higher than with any other method in every English region. “For the WHO to hold such contrary views is either bad science or bad faith,” he added. “Both risk it becoming an enemy of harm-reduction.”

    The press note said also the U.K. was due to send a delegation to the COP9 meeting, the November 2021 Conference of the Parties to the WHO’s Framework Convention on Tobacco Control. This would be the first time the U.K. had attended such a meeting since leaving the EU, and the UKVIA had been among expert guests invited by the All-Party Parliamentary Group for Vaping to advise on the COP9 delegation’s approach. “The U.K. has a genuine opportunity to promote harm-reduction as a valid, progressive strategy for public health on the world stage,” said Dunne. “We must not allow misinformation to undermine this potential, irrespective of the source.”

    But the UKVIA has a further problem. In another press note in March, it said it was deeply concerned by news that U.K. businesses were being impacted by the U.S.’ “Vape Mail” ban, part of a congressional spending bill passed under former President Trump. By April 5 [after this report was written], leading carriers such as UPS, FedEx, DHL and the U.S. Postal Service were due to be off-limits for vaping shipments.

    “The vaping supply chain is a global one, bringing together resources and expertise from around the world,” said Dunne. “It is bitterly disappointing to see these American restrictions having a negative impact in the U.K., but the nature of the supply chain makes it inevitable. In the EU too we are hearing of vaping businesses being turned away from major carriers.

    “The potential impact on public health is grave, as so many people are relying on shipped goods as a lifeline during the pandemic. Without proper access to harm-reduction products we know people can revert to smoking cigarettes, today in the U.S. but perhaps tomorrow in the U.K. With businesses already struggling through lockdown, and our health services under great strain, supply chain issues really are the last thing we need.”

  • PMI Nominates New Board Members

    PMI Nominates New Board Members

    Photo: PMI

    Philip Morris International’s (PMI) board of directors has nominated two new members, Juan José Daboub and Shlomo Yanai. Additionally, Jacek Olczak has been nominated to the board following the announcement of his appointment as CEO, a role he will assume immediately following the annual shareholders meeting on May 5.

    Daboub started his career as an engineer before moving into government. In 1999, he was the youngest senior cabinet member in El Salvador, serving first as chief of staff to the president and then as minister of finance. Later, as a managing director at the World Bank Group, he was credited with having driven several corporate initiatives and reforms, including leading the institution’s global agenda on governance and anti-corruption.

    Over the past decade, Daboub has focused on climate adaptation and energy transition through public and private investment vehicles and not-for-profit organizations, including as chair of the Council on Climate Change at the World Economic Forum and founding CEO of the Global Adaptation Institute. He is currently president of The Daboub Partnership and of ThinkHUGE USA-Central America Job Creation Council.

    José’s experience across multiple business sectors, combined with his deep understanding of geopolitics and international institutions, will be a great addition to the PMI board.

    “Juan José fully embraces PMI’s commitment to delivering a smoke-free future,” said Lucio Noto, PMI’s interim chairman, in a statement. “José’s experience across multiple business sectors, combined with his deep understanding of geopolitics and international institutions, will be a great addition to the PMI board.”

    Yanai was president and CEO of Teva Pharmaceutical Industries from 2007 to 2012. In that time, he led the company’s international expansion and increased annual revenues by nearly $10 billion. Prior to that, Yanai was president and CEO of ADAMA for three years. His time at those organizations and later as a board member or chair of several other companies in the pharma space, as well as his current position as chairman of the board of Lumenis, a medical devices company, have given Yanai a solid understanding of the science behind drug discovery, development and regulation. He served in the Israeli Defense Forces for more than 30 years, reaching the rank of major general. In his military career, Yanai worked extensively with politicians and public sector bodies.

    “The combination of Shlomo’s broad board experience and his knowledge of the pharma industry and its regulatory processes will bring to the board an extremely relevant set of skills as PMI continues to develop and commercialize scientifically validated smoke-free products and starts deploying its beyond nicotine strategy,” said Noto.

    The nominations announced today follow the appointments of Michel Combes and Bonin Bough to the board of directors in December 2020 and February 2021, respectively. Combes is president of SoftBank Group International and oversees several SoftBank portfolio companies. He was chief financial officer and then CEO and a member of the board of directors of Sprint, CEO of Vodafone Europe, CEO of Alcatel-Lucent, CEO and chief operating officer of Altice, and chairman and CEO of SFR Group.

  • Fourth-Generation Atomizers Not Harmless

    Fourth-Generation Atomizers Not Harmless

    Photo: Tobacco Reporter archive

    Fourth-generation electronic cigarette pod atomizers are similar in design to those of previous generations and contain elements that may adversely affect health and accumulate in the environment, according to a new study by the University of California (UC), Riverside.

    According to the researchers, chronic exposure to the elements/metals in atomizers could adversely affect human health. Further, e-cigarette pod products, which eventually enter the environment, could contribute to chemical pollution in water and soil.

    “The more these devices aesthetically evolve, the more the atomizer components and elemental composition stay the same,” said Esther Omaiye, a graduate student in the Department of Molecular, Cell and Systems Biology at UC Riverside and the first author of the research paper that appeared in PLOS ONE, in a statement.

    “While major components such as filaments, thick wires, filament-wire joints, air tubes and wicks have been preserved across generations, we see newer components in fourth-generation pod products, such as connector pins, connector-wire joints, ceramic wicks and chambers that house these wicks.”

    The more these devices aesthetically evolve, the more the atomizer components and elemental composition stay the same.

    “We set out to characterize the design features of pod-style atomizers and analyze the elemental composition of the atomizers,” said Prue Talbot, a professor of cell biology at UC Riverside, who led the research team. “These elements may, upon heating, enter the aerosol and be inhaled by users.”

    The external appearance, design, battery power, atomizers and nicotine delivery of e-cigarettes have evolved over the last decade. Fourth-generation pods have low-powered batteries, an e-liquid reservoir and an atomizer/mouthpiece. According to the researchers, they contain high concentrations of nicotine and acid.

    Scientists have only limited understanding of what exactly makes up pod atomizers, which are required components for aerosol production in e-cigarettes.

    “Since elements in the atomizers can leach into the e-fluids or transfer to the aerosols when the e-fluids are heated, it is important to know what these elements are that users can get exposed to,” said Omaiye, who works in Talbot’s lab.

    The researchers examined 11 fourth-generation pods from six brands/manufacturers. Of 23 elements they identified in the pod atomizers, 11—nickel, chromium, iron, gold, copper, zinc, tin, oxygen, silicon, carbon and sodium—were present in relatively high abundance. Some of these elements have been linked to human illnesses, including cardiovascular diseases, immune system suppression, lung injury, cancer, renal damage, neurotoxicity and silicosis. Nickel, chromium, iron and gold were found to be the most abundant elements in fourth-generation atomizers.

    “We now know what elements users may be inhaling by using fourth-generation products,” Omaiye said. “Our work reinforces the idea that e-cigarettes are not without harm. Our next line of research is evaluating fluids and aerosols generated from fourth-generation products to get a clearer picture of how their elements may be directly affecting e-cigarette users’ health.”

  • BAT Ranked Third in ESG Index

    BAT Ranked Third in ESG Index

    Photo: BAT

    British American Tobacco (BAT) has been rated as the third-highest environmental, social and governance (ESG) company in the FTSE-100 index, which consists of the 100 largest publicly traded companies in the United Kingdom. The designation for BAT was made by Refinitiv, a global provider of financial market data and a subsidiary of the London Stock Exchange Group.

    BAT achieved an ESG score of 91 out of 100 and is the highest-rated business in the food and tobacco sector globally.

    Winning more than 200 awards in 2020 was an exceptional recognition of our achievements and shows we are on track to build the sustainable enterprise of the future.

    “Winning more than 200 awards in 2020 was an exceptional recognition of our achievements and shows we are on track to build the sustainable enterprise of the future,” said Guy Meldrum, CEO and president of BAT subsidiary Reynolds American Inc., in a statement. “We’re delighted to be part of the ranking as one of the FTSE-100 top three ESG performers as continued proof of this. In 2020, we committed to ambitious new ESG targets to deliver ‘A Better Tomorrow’ for consumers, society and for our investors, and we’re well on our way to achieve them.”

    In March 2021, BAT published its annual ESG report demonstrating the global organization’s progress against its targets, including: increasing consumers of noncombustible products by 3 million to 13.5 million at year end 2020; increasing New Categories revenue by 15 percent in 2020 versus 2019; increasing renewable energy to more than 26 percent in 2020—a 10 percent increase from 2019, coupled with a greater than 30 percent reduction in overall carbon emissions since 2019; reducing water withdrawn by nearly 11 percent since 2019; holding more than 38,000 human rights training sessions, with more than 390,000 attendances across its supply chain; and reaching 38 percent of female representation in management roles.

  • FDA Urged to Remove Flavors from Market

    FDA Urged to Remove Flavors from Market

    Photo: Bacho12345 | Dreamstime.com

    Lawmakers in the U.S. House of Representatives have sent a letter to the head of the U.S. Food and Drug Administration (FDA) urging the agency to remove all flavored vaping products from the market. The 43 House Democrats sent the letter to acting FDA Commissioner Janet Woodcock as the agency continues to review thousands of premarket tobacco product applications (PMTAs).

    “Flavored e-cigarettes are putting a new generation of kids at risk of nicotine addiction and the serious health harms that result from tobacco use,” states the letter drafted by Representatives Debbie Wasserman Schultz and Diana DeGette, according to The Hill.

    The lawmakers want the FDA to ban all flavored e-cigarettes upon further review and eliminate the exemption the FDA has for menthol and disposable products.

    Along with a ban on flavored e-cigarettes, lawmakers want a ban on PMTAs and the marketing of e-cigarettes that target minors. “Today, e-cigarette use by youth remains at what FDA calls ‘epidemic proportions,’ and e-cigarettes have been the most commonly used tobacco products among youth since 2014—and flavors are a key reason why,” the letter states.

    The FDA has already put a ban on fruity e-cigarettes. However, brands such as Puff Bar are sidestepping the ban by selling fruit-flavored disposable vaporizers that use synthetic (tobacco-free) nicotine. “We strongly recommend that FDA’s premarket review process require manufacturers to provide convincing evidence that their products do not increase youth use of nicotine and tobacco in ways that increase the risk of abuse and addiction among youth,” the lawmakers stated.

  • ‘Hungary Tobacco Tax Too Low’

    ‘Hungary Tobacco Tax Too Low’

    Photo: hince from Pixabay

    Hungary has failed to comply with European Union regulations by keeping the excise tax on tobacco products below the required threshold, reports Hungary Today, citing the Court of Justice of the European Union (CJEU).

    In October 2019, the European Commission (EC) complained to the CJEU that Hungary had failed to gradually raise the excise tax on tobacco products to the required threshold by the deadline of Dec. 31, 2017.

    Under EU guidelines, the excise tax on tobacco products must reach 60 percent of the average retail price but at least €90 ($105.88) per 1,000 cigarettes. The 60 percent ratio does not apply to prices above €115 per 1,000 cigarettes.

    The EC said Hungary had failed to reach that threshold in 2017 or in subsequent years until the suit was brought, distorting competition within the bloc and violating EU health protection regulations

  • Intertabac Exhibition Postponed Again

    Intertabac Exhibition Postponed Again

    Photo: Westfalenhallen Unternehmensgruppe

    The Intertabac and Intersupply 2021 trade shows will not take place due to the ongoing coronavirus pandemic. Billed as the world’s largest tobacco trade show, the event was scheduled to take place Sept. 16–18, 2021, in Dortmund, Germany. Westfalenhallen Unternehmensgruppe, the owner of the Intertabac show, announced today that the event is cancelled after talking with exhibitors and sponsors.

    Working closely with the industry associations and partner associations, the conceptual sponsors, the advisory board and the exhibitors of the twin fairs, it has become clear that the vast majority is against holding the events this September.

    “Working closely with the industry associations and partner associations, the conceptual sponsors, the advisory board and the exhibitors of the twin fairs, it has become clear that the vast majority is against holding the events this September as previously announced,” said Sabine Loos, managing director for Westfalenhallen Unternehmensgruppe, in a statement.

    Intertabac showcases nearly every product that is associated with consuming nicotine, from vaping products and combustible cigarettes to machine-made and premium cigars, pipes, shisha, smokeless and other tobacco-related products. In 2019, 13,800 people attended the event, which had more than 500 exhibitors from 47 countries, according to Intertabac.

    Last year’s event was also cancelled. Intertabac 2022 is scheduled for Sept. 15–17, 2022, according to Westfalenhallen Unternehmensgruppe .

  • Philippines Urged to Adopt Virtual Stamps

    Philippines Urged to Adopt Virtual Stamps

    Photo: Gerd Altmann from Pixabay

    A senior legislator in the Philippines wants the Bureau of Internal Revenue (BIR) to create “virtual stamps” for export cigarettes to deter their smuggling into the domestic market, reports Business World.

    At a hearing conducted by the House Committee on Ways and Means on March 22, Representative Jose Ma. Clemente S. Salceda proposed a “less visible” form of security labelling along with material labelling features.

    Salceda also reiterated his call for the BIR to revoke a rule that exempts cigarettes sold for export from tax stamp affixture, adding that unstamped export cigarettes were a key source of supply for smugglers. Cigarettes for domestic sale affixed with tax stamps indicate that the manufacturer has paid the required excise taxes.

    The House tax panel has found that tobacco smugglers evade excise taxes by declaring tobacco products “for export.”

    BIR Deputy Commissioner Arnel SD. Guballa said while the agency supports stamps on export cigarettes, manufacturers expressed concerns that this could deter foreign markets since most other countries prefer the products to be shipped without stamps.

    “The international market demand is for cigarettes to have no stamps,” he said.

    The government loses PHP30 billion annually due to untaxed tobacco products on the domestic market. In February, the Philippines’ Bureau of Customs declared an “all-out war” against cigarette smuggling.

  • Prospect of Vapor Regs Boosts China Tobacco

    Prospect of Vapor Regs Boosts China Tobacco

    Photo: Shenzhen Smoore Technology

    Chinese stocks related to the traditional tobacco business rose following suggestions that China would regulate e-cigarettes like tobacco products.

    Cigarette packaging provider Letong Chemical and cigarette printing and filter maker Shaanxi Jinye Sci Tech & Education surged by the daily cap of 10 percent, according to the South China Morning Post.

    By contrast, vapor companies tanked. Smoore lost HKD106 billion in market cap while RELX Technology shed $14.45 billion on the New York Stock Exchange immediately after the announcement.

    On March 22, China’s Ministry of Industry and Information Technology and the State Tobacco Monopoly Administration released a proposed policy that aims to address tobacco product quality issues and false advertising. Without providing details, the agencies indicated that the changes would also apply to vapor products. The changes are currently subject to a public consultation that ends April 22.

    Having taken arduous and often herculean steps to remain compliant with all government regulations, Kaival Brands and the leadership at Bidi Vapor hope that additional supervision of e-cigarette manufacturing will help raise standards for the devices worldwide.

    With around 300 million smokers, China is the world’s largest tobacco market and the world’s largest potential market for vapor products. iiMedia Research estimates that the Chinese e-cigarette market could reach CNY10 billion ($1.53 billion) in 2021. There were more than 170,000 vapor companies as of February 2021. The market is also expected to grow in the future year.

    In 2019, Chinese authorities banned e-cigarettes from online shopping channels. The restrictions prompted e-cigarette companies to invest significantly in developing physical stores across the country. RELX Technology, for example, received 30 percent of its revenues from online sales prior to the ban. In January 2020, the company pledged to invest more than CNY500 million over the three years to open 10,000 authorized sellers in China.

    Some vapor companies welcomed the prospect of greater supervision over the e-cigarette sector in China. U.S.-headquartered Kaival Innovations Group, which distributes the Bidi Stick brand, said the announcement would have no effect on its operations.

    “Having taken arduous and often herculean steps to remain compliant with all government regulations, Kaival Brands and the leadership at Bidi Vapor hope that additional supervision of e-cigarette manufacturing [in China] will help raise standards for the devices worldwide,” the company wrote in a press release.

  • Senate Confirms Murthy as Surgeon General

    Senate Confirms Murthy as Surgeon General

    Photo: forcal35 from Pixabay
    Vivek H. Murthy

    The U.S. Senate on March 23 confirmed Vivek H. Murthy as United States surgeon general, reports The Washington Post.

    The surgeon general, also known as the “nation’s doctor,” typically serves as a prominent spokesperson on public health issues but has a limited role in policymaking. President Joe Biden wants him to be a key public voice on the Covid response to restore public trust in medicine.

    The surgeon general also oversees the U.S. Public Health Service Commissioned Corps, a uniformed service of about 6,000 public health workers who have helped staff the coronavirus response and administer vaccines but struggled earlier this year to get vaccinations of their own.

    Murthy first served as surgeon general during the Obama administration, working on public health issues such as the opioid crisis. He also pursued his own work combating loneliness and the stigma of mental illness. He was the nation’s first Senate-confirmed Asian American surgeon general.

    His original 2013 nomination was stalled in the Senate for more than a year, in part because gun rights organizations faulted Murthy for saying gun violence was a public health problem—a stance Murthy has continued to espouse.

    Murthy is an advocate of e-cigarette regulation. In 2016, he released “E-Cigarette Use Among Youth and Young Adults,” calling for action to reduce the use of vapor products among young people.

    Michael Siegel, a professor at the Boston University School of Public Health, at the time described the report as scientifically dishonest.

    Siegel said the report essentially lied about the single most important fact that the public needed to understand about electronic cigarettes and vaping products: that they do not contain tobacco and therefore vaping is not a form of tobacco use.