Author: Staff Writer

  • Tanzania Eyes New Tobacco Markets

    Tanzania Eyes New Tobacco Markets

    Photo: Taco Tuinstra

    The government of Tanzania wants to extend its tobacco market to the Middle East, Northern Africa and eastern Asia, reports All Africa.

    The tobacco industry is the largest source of foreign currency in the country, and the minister for agriculture, Adolf Mkenda, has concerns about the current foreign buyers trying to monopolize the crop.

    Mkenda stated that the government wanted to export its finest tobacco to China, Saudi Arabia, Indonesia, Algeria, Egypt and Sudan, among other countries. “The current system is not good,” he said. “Some buyers are skipping locally produced tobacco or demand to buy at a low price … they push farmers to sell their produce to Zambia. For no reason traders go to Zambia to buy the same crop they rejected in Tanzania and at a high price … this is unacceptable.”

    Deputy Minister for Agriculture Hussein Bashe said global demand for tobacco declined by 5 percent. He noted, however, that tobacco production in Tanzania is expected to rise to 67,000 metric tons in 2020-2021 from 42,000 metric tons in 2019-2020. “This is due to the emergence of local buyers,” he said.

    Of the cigarettes produced in Tanzania, 65 percent are exported to foreign countries.

     

     

  • PMTA Included in White House Rules Freeze

    PMTA Included in White House Rules Freeze

    Photo: David Mark from Pixabay

    The new U.S. administration has frozen all new and pending rules introduced in the last days of the Trump administration. Included in the freeze are the new finalized rules for premarket tobacco product applications (PMTA) and substantial equivalence (SE) that were announced on Jan. 19, the last full day of the Trump administration.

    The Food and Drug Administration’s CBD enforcement policy draft guidance, which had been under review at White House Office of Management and Budget (OMB) since July, was also withdrawn.

    Stakeholders and lawmakers have been anticipating the guidance for two years, since the 2018 Farm Bill gave the FDA authority over hemp-derived CBD. Representatives from the U.S. Hemp Roundtable and the National Industrial Hemp Council, both of which met with OMB to discuss the draft guide in late July, say the lack of regulatory clarity from FDA has led to uncertainty in the hemp and CBD industry.

    A memo, issued by White House Chief of Staff Ronald Klain, calls on the heads of executive departments and agencies to “propose or issue no rule in any manner—including by sending a rule to the Office of the Federal Register [OFR]—until a department or agency head appointed or designated by the president after noon on January 20, 2021, reviews and approves the rule.” Previous administrations, including those of Trump and Barack Obama, issued similar memos to stop last-minute actions by the outgoing administration.

    What this means for the nicotine business is unclear. It does not change the rules concerning the Sept. 9 deadline to submit a PMTA to be eligible to stay on the market for year. Because the rule was not formally published in the Federal Register by the U.S. FDA before the end of Trump’s presidency, the Biden administration could move forward with the rule as is, make changes to the rule or scrap the rules entirely.

    An note on the Federal Register website reads,” The Food and Drug Administration withdrew this document while it was on public inspection. It will remain on public inspection until the close of business on January 27, 2021. A copy of the withdrawal request is available at the Office of the Federal Register.”

    The White House memo also explains that it does not strictly apply to “rules” but also to “any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation of a final rule or regulation, including notices of inquiry, advance notices of proposed rulemaking, and any agency statement of general applicability and future effect that sets for a policy on a statutory, regulatory, or technical issue or an interpretation of a statutory or regulatory issue.”

  • Jose Maria Costa Joins Newco

    Jose Maria Costa Joins Newco

    Jose Maria Costa

    Jose Maria Costa will join Newco’s global team as an advisor to management effective Feb. 1, 2021.

    Over the course of his 28-year career, Costa held various managerial positions at Pyxus International and its predecessor companies. His most recent roles include executive vice president of value-added agricultural products in Lilongwe, Malawi; executive vice president of global operations and supply chain in Raleigh, North Carolina, USA; and regional director for Europe and the U.K.

    In his new role, Costa will focus on growing Newco’s business through diversification and sustainability.

  • Into perspective: The perils of secondhand smoke

    Into perspective: The perils of secondhand smoke

    Photo: Bunyos | Dreamstime

    The perils of secondhand smoke pale in comparison to some of the other risks people are regularly exposed to.

    By George Gay

    In many countries, debates have broken out as Covid-19-necessitated lockdowns have been followed by the easing of restrictions on where people may go and on what they may do and with whom they may associate once they get there. These debates have taken different forms, but perhaps the most usual concerns the relative risks and benefits associated with people returning to lives that are post-Covid normal or acting more cautiously. Those supporting the former course of action argue that we need to get economies moving again even though doing so has the potential to reignite the spread of the disease to some unknown extent. Those who support the latter course believe that it is better to leave restrictions in place for an as-yet unspecified time and thereby reduce the threat of a second wave of the disease even though this would increase the economic hit to some unknown level.

    As far as I can see, there is no right or wrong side to this debate, partly because the health and economy of a nation are intertwined in complex ways. It is simply to be hoped, therefore, that those charged with making decisions associated with this issue are reasonably competent and take a broadly utilitarian stance aimed at doing whatever they believe will be of benefit to the greatest number of people or, at the very least, doing whatever they believe will cause the least harm.

    Difficulty accessing risk

    I must say that I have little confidence that our leaders will act in this way. The trouble is, we don’t seem to be good at assessing risk, especially multiple risks, either at an individual or societal level, and if we’re not good at assessing risk, what hope is there that we can effectively reduce harm?

    According to a story in the Shropshire Star, in May, conservative Member of Parliament Mark Pritchard wrote to the U.K. Health Secretary Matt Hancock calling for an expansion of tobacco smoke-free areas outside pubs, cafes and restaurants should outdoor seating areas at such venues be allowed to reopen after the Covid-19 lockdown. He said that while he was not against smoking and while there should be dedicated areas for smokers and nonsmokers, he believed the new arrangements were needed to “protect” nonsmokers. “This is about nonsmoking customers being able to sit outside cafes and pubs without having to run the gauntlet of secondary smoke from smokers, especially the elderly and families with young children,” he was quoted as saying. “Why should nonsmokers be forced to breathe in other people’s smoke because Covid-19 forces more people to eat outside?”

    I’m certain that, on reading the newspaper’s report, a lot of people would have believed that Pritchard had a point, but in saying what he said, he indirectly referred to a whole host of risks while focusing on only one. And, to my way of thinking, he didn’t focus on the main risk.

    Let’s put what he said in a different way. He was apparently happy for adults in England (Northern Ireland, Scotland and Wales, which together with England make up the U.K., have operated with varying degrees of independence in respect of the Covid-19 crisis), where the government’s reaction to the Covid crisis has been chaotic and where even as I write this at the end of July, the situation remains on a knife-edge—to be allowed to go into pubs where there are other people, possibly people infected with Covid-19, which can kill you within days or weeks. He was happy for them to be able to buy alcoholic—read toxic—drinks and take them outside to consume them even though these adults might be in charge of children, and the consumption of alcohol is known to impair decisionmaking processes. He was happy, too, that the adults should be allowed to return to the pub’s interior on multiple occasions, no doubt each time becoming less risk-averse, less conscious of the need for social distancing thereby increasing the risk of Covid-19 transmission. And he was happy that all this activity was to have taken place perhaps—certainly in the case of street cafes—against a background of passing vehicles belching out their toxic fumes. But he was not happy for a little secondhand tobacco smoke to be added to this toxic, risky mix.

    Pritchard seemed happy, too, that these families should be able to eat at these pubs, cafes and restaurants, many of which, we are told by the government, offer high-sugar, high-fat menus and the attendant risk of obesity, which, because it is now seen as a high-risk factor in respect of Covid-19, is once again becoming a source of major concern for the government.

    Relative risks

    Even given that my rendering of the street scene outside these pubs, cafes and restaurants is partisan, you surely have to wonder why the risk associated with secondhand smoke was singled out from all these other risks. One thing we know is that it had nothing to do with the level of risk. The consumption of alcohol, the effects of outdoor pollution on the body and being obese each carry a higher health risk than does breathing secondhand smoke, and Covid-19’s risk seems set soon to overtake that of secondhand smoke.

    According to World Health Organization (WHO) figures on annual premature deaths worldwide, secondhand smoke accounts for 1.2 million such deaths, obesity accounts for 2.8 million, alcohol for 3 million and outdoor pollution for 4.2 million. And on July 27, the WHO, in announcing that more than 640,000 deaths from Covid-19 had been reported to it, added that the pandemic was continuing to accelerate. Given that, according to the WHO, the total number of cases had roughly doubled in the six weeks to July 27, Covid-19 looked set to leave secondhand smoke in its wake.

    And yet, it is secondhand smoke that is in the firing line here. One of the reasons, of course, is that secondhand smoke, unlike alcohol, is highly visible and has an easily recognizable smell that many nonsmokers don’t like. At the same time, many people seem to like the smell of cooking food and, especially, frying fat, and since the smell of traffic fumes is ubiquitous in cities, pollution has become just part of the background.

    Another reason is that governments and other organizations are forever warning of the dangers of secondhand smoke whereas the consumption of alcohol, even with all its attendant negative social attributes (it’s worth checking out what a lot of women have had to put up with during lockdown, often after their partners have been drinking), is seen as a bit of a lark: perhaps a bit naughty but something to make the party go well. A lot of people, including, significantly, many politicians, use alcohol as their crutch in social situations. I think it was Ernest Hemingway who said that he drank to make other people seem more interesting.

    And, of course, it goes without saying that governments simply have no answers to pollution and its close relation, environmental breakdown, because they lack the imagination necessary or because they are in hock, one way or another, to the companies that largely cause the pollution.

    Refocusing our efforts

    To my way of thinking, the above suggests that if harm in general is to be reduced, we in the tobacco industry need to refocus our efforts.

    Despite the fact that the industry has a pariah status, it has, in recent years, thought long and hard about harm reduction as it applies to tobacco. In particular, the idea of a continuum of risk of tobacco and nicotine products has been extremely helpful in making a lot of creative people think about how it is possible to reduce the harm caused by the consumption of these legal but addictive products. And these people have come up with and are continuing to come up with an array of innovative, lower-risk products. Unfortunately, however, the idea of a continuum of risk has not changed enough minds, and a lot of people—many with influence and power—have simply dug in their heels and said that the only sensible place for people to place themselves on this continuum is at the nonconsumption end.

    Could it be that in suggesting the existence of a continuum of risk that includes only tobacco and nicotine products, we have, inadvertently, suggested that if people don’t use such products, they can live healthy, risk-free lives? Certainly, what Pritchard reportedly had to say would suggest that this is the case. And given this, is it perhaps time that we expanded our continuum of risk to include other products, such as alcohol, other activities, such as driving, and other circumstances, such as poverty, to indicate that quitting tobacco does not render one risk-free?

    In his statement, Pritchard played the “children” card, which is typical when people aim at tobacco, but again he seemed, whether consciously or unconsciously, to be selective in what he said. He omitted to point out that he is a member of the party of government that, since 2010, has seen 600,000 additional children fall into poverty. If we want to reduce the harm caused to children, rather than protecting them from a whiff of tobacco smoke, we should stop supporting systems that promote the emergence of zoonotic diseases, stop families from falling into poverty, stop the consumption of alcohol by abusive parents and stop feeding children high-sugar, high-fat diets. Especially, we should stop living polluting lifestyles so that we can bequeath to children an environment that still supports life.

  • Heavy Smokers More Likely to be Hospitalized From Covid-19

    Heavy Smokers More Likely to be Hospitalized From Covid-19

    Photo: Taco Tuinstra

    A new study in JAMA Internal Medicine shows that heavy smokers are twice as likely as nonsmokers to be hospitalized from Covid-19. Heavy smokers are also 89 percent more likely to die from the coronavirus than nonsmokers.

    Medics from The Cleveland Clinic in Ohio and Florida analyzed more than 7,000 coronavirus patients, looking at smoking history. Those with more than 30 years of smoking history showed higher instances of hospitalization and death.

    “The findings showed a dose-response association between pack-years [number of years smoking] and adverse Covid-19 outcomes,” the medics wrote. “The results of this study suggest cumulative exposure to cigarette smoke is an independent risk factor for hospital admission and death from Covid-19.”

  • Higher-Nicotine Juuls May Facilitate Switching

    Higher-Nicotine Juuls May Facilitate Switching

    Photo: Juul Labs

    The nicotine delivery of Juul products available in the United States and Canada (59 mg/mL or 5 percent nicotine by weight) more closely resembles the nicotine delivery and experience of cigarette smoking than Juul products available in the European Union, which contain 18 mg/mL and/or 9 mg/mL of nicotine, according to a new study from Juul Labs published in Nicotine & Tobacco Research.

    Researchers posited that heavier and more dependent smokers in particular may require the greater nicotine delivery of the higher nicotine concentration Juul pods (59 mg/mL) in order to successfully transition away from cigarettes.

    The new study, which consisted of 24 adult smokers, assessed the nicotine delivery and subjective effects of combustible cigarettes compared to the Juul system with three nicotine concentrations: 59 mg/mL (U.S. and Canada), 18 mg/mL (U.K. and Canada) and 9 mg/mL (U.K.).

    At each of five study visits, participants used one of four Juul products or smoked their usual brand of cigarette during controlled (10 puffs) and ad libitum use (5 minutes) sessions. Blood samples were collected, and levels of nicotine in the bloodstream were measured for each study product. Subjective effects, including relief of craving for cigarettes and withdrawal symptoms, were assessed 30 minutes after participants used each product.

    The higher concentration (59 mg/mL) Juul product delivered significantly greater levels of nicotine and significantly reduced craving and withdrawal compared to the Juul with 18 mg/mL and 9 mg/mL nicotine concentrations. Researchers concluded that the lower nicotine delivery and craving relief from the 18 mg/mL and 9 mg/mL Juul pods available in the EU may limit the product’s ability to provide a satisfying alternative to cigarette smoking—particularly for more dependent adult smokers living in that region.

    “When considering laws and regulations governing nicotine concentration in ENDS, policymakers should bear in mind that the availability of a variety of alternative nicotine products may facilitate even more smokers transitioning away from cigarettes,” said Mark Rubinstein, vice president of global scientific affairs at Juul Labs.

  • Pyxus to Divest Cannabis Business

    Pyxus to Divest Cannabis Business

    Photo: Pyxus International

    Pyxus International intends to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses. In addition, the company has taken action to restructure its industrial hemp and CBD operations to minimize financial investment in that business.

    “Our strategic decision to exit cash-flow negative cannabinoid operations will allow us to reduce corporate SG&A [Selling, general and administrative expense] and sharpen our focus on growing our more profitable tobacco and e-liquid businesses such that these complementary businesses can fully leverage Pyxus’ 145-year heritage and existing relationships,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.

    “We maintain our belief that there is value in FIGR and its growth can be accelerated with the right capital structure and partner. The completion of our financial restructuring, global operations efficiency program, and continued investment in agronomy, traceability and sustainability are proving to be of significant value to our tobacco customers as we have started to work together on long-term strategic partnerships that support our objective of growing our market share.”

    In connection with the plan, the company’s three Canadian cannabis subsidiaries, FIGR Brands, Canada’s Island Garden (FIGR East) and FIGR Norfolk filed for and received protection from their creditors under the Companies’ Creditors Arrangement Act (Canada).

     

  • Californians to Vote on Flavor Ban

    Californians to Vote on Flavor Ban

    A referendum to overturn California’s ban on flavored tobacco products qualified on Friday, reports AP.

    Voters will nw decide in November 2022 whether to uphold the ban. The law won’t take effect until voters have decided.

    The ban restricts the sale of flavored products but doesn’t criminalize possession of these products. Loose-leaf tobacco, premium cigars and shisha tobacco are exempt. Flavors including, but not limited to, “fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, menthol, mint, wintergreen, herb or spice” are included in the ban. Those caught selling banned products face a fine of $250.

    Supporters of the law argue that these products are targeted at youth and Latino and Black communities while opponents of the ban argue that it goes too far and takes away products preferred by these communities while allowing continued sales of products preferred by wealthy communities.

    Former state Senator Jerry Hill sponsored the legislation. He stated that his goal is to target products contributing to youth addiction, and he said tobacco companies are attempting to “delay the inevitable.”

    “Voters are a lot smarter than Big Tobacco thinks they are,” Hill said.

  • Next Generation Assigns Patent

    Next Generation Assigns Patent

    Photo: Martinmark – Dreamstime.com

    Next Generation Labs (NGL), the world’s largest manufacturer of TFN R-S, S and R isomer nicotine, has assigned the rights of its Republic of Korea R-S nicotine manufacturing patent to NextEra Co.

    NGL said it has taken this step “to help strengthen direct in-market enforcement efforts by NextEra against unscrupulous manufacturers who have attempted to ship unauthorized synthetic, nonsynthetic and, in some instances, counterfeit or mislabeled TFN synthetic nicotine vape products into the South Korea market.”

    NextEra is NGL’s exclusive TFN partner and is the largest flavor formulator and distributor of synthetic nicotine vape products in South Korea. Under the assignment, NextEra products containing TFN will continue to be sold, and NextEra will use all means available to protect the market and prohibit violative brands from entering South Korea.

    “This is a strategic patent assignment that will give NextEra the full freedom to use all legal means at its disposal to seek enforcement of existing intellectual property rights related for TFN recreational nicotine in the market,” NGL wrote in a statement

    “Next Generation Labs fully expects NextEra to immediately take action against violators and utilize all necessary legal remedies against any business seeking to either: divert R-S nicotine product sales into South Korea from other markets, attempt to sell mislabeled tobacco-derived nicotine as a synthetic product, or to sell counterfeit TFN products in South Korea,” the company added.

    The terms of the patent transaction have not been made public, and the transaction will not impact Next Generation Labs’ other patents in South Korea or impact control of patents in any other jurisdiction worldwide.

  • Tobacco Firms Named Top Employers

    Tobacco Firms Named Top Employers

    Image: Top Employer Institute

    British American Tobacco (BAT), Japan Tobacco International (JTI) and Imperial Brands have been recognized by the Top Employers Institute.

    BAT and JTI were certified as two of only 16 “Global Top Employers.” Imperial Brands was named a “Top Employer Europe” for a fourth consecutive year in 2021.

    “Receiving Global Top Employer certification for the fourth-year running is a fantastic achievement as it acknowledges our commitment to creating an inclusive and innovative working environment that our employees enjoy being a part of,” said Hae In Kim, director, talent, culture and inclusion at BAT, in a press note.

    “Our employees are our most important asset, and we are particularly proud of the resilience and determination they have displayed during the pandemic. Without doubt, they are a key driver in our continued strong performance as we transform our business and build A Better Tomorrow for all our stakeholders.”

    “The Top Employer certification is not an end-in-itself,” said Steve Dyer, JTI’s vice president, global talent management, in a statement. “For us, it is confirmation that we have always been on the right track by making our workplace a safe and flexible environment for all our employees, whether they are farmers, scientists, office or factory workers.

    “This seventh consecutive certification also sends a strong message to our future employees: we constantly give our people the opportunity to develop their career under the best conditions in order to perform to their highest abilities while being themselves.”

    “I am delighted that Imperial has been recognised for another year with the Top Employer certification,” said Alison Clarke, chief people and culture officer at Imperial Brands, in a statement.

    “Our HR Practices have been surveyed against an international benchmark with a thorough methodology. This accreditation is a symbol of the high standards that we aspire to deliver every day for our people.”

    “Despite the challenging year we have experienced, which has certainly made an impact on organisations around the globe, our regional top employers have continued to demonstrate the power of putting their people first in the workplace,” said David Plink, CEO of the Top Employers Institute.

    Top Employers Institute is the global authority on recognizing excellence in the conditions that businesses create for their people.

    Companies participating in its prestigious certification program have the potential to gain top employer status following a comprehensive analysis of people development practices.

    The institute’s analysis covers 600 practices across a number of areas including: talent strategy, workforce planning, on-boarding, learning and development, performance management, leadership development, career and succession management, compensation and benefits and culture.