Author: Staff Writer

  • More than a Cigarette

    More than a Cigarette

    Taat CEO Setti Coscarella
    Setti Coscarella
    (Photos courtesy of Taat Lifestyle and Wellness)

    Taat products offer smokers their familiar ritual without the disadvantages of nicotine and tobacco.

    By Marissa Dean

    In recent years, we’ve seen the tobacco and vapor industry change dramatically—focus has been shifted to less-risky products, including heat-not-burn and low-nicotine products. Now, enter hemp.

    In 2018, U.S. Congress passed the Farm Bill, legalizing hemp with less than 0.3 percent THC, the psychoactive component in cannabis, in all 50 states. Since then, some tobacco farmers have either shifted to growing hemp or added it to their repertoire as an additional income source. In the November 2020 election, some states voted on cannabis legislation, deciding whether to legalize medical and/or recreational cannabis.

    This poses the question of how the hemp and cannabis industry may interact with or change the tobacco and vapor industry. Some major tobacco companies have taken a stake in the hemp industry as it has grown while others are hesitant to go that route due to regulations and legality questions across states. Taat Lifestyle & Wellness seems to be bridging the gap between the two industries—its products will offer smokers a direct, comparable alternative to traditional combustible tobacco cigarettes.

    Taat Lifestyle & Wellness is a publicly traded company based in Vancouver, British Columbia, Canada. According to its website, it is an early stage life sciences company. The firm says it aims to provide smokers with a better overall experience than smoking traditional cigarettes. Taat CEO Setti Coscarella notes that Taat is not your traditional cigarette. In fact, he classifies it as a completely new product.

    “Nicotine is a problem,” said Coscarella, who was previously a lead strategist at Philip Morris International where he worked on the IQOS heated-tobacco product and studied smokers. “None of the tobacco companies or vape companies can wrap their mind around selling something that isn’t addictive. … [O]ur product is nonaddictive. So it has hemp, yes; it has CBD, but I’m not positioning it as a hemp cigarette with CBD because it doesn’t have the same experience as a hemp cigarette.”

    Taat has created this new product using its proprietary Beyond Tobacco filler, a hemp-based filler that is processed to smell, taste and look like traditional tobacco but without the nicotine. “Nicotine as a drug is a very useless drug,” Coscarella said. “It does nothing other than keep you addicted to doing the thing that you need in order to consume that drug.”

    The company’s goal with Taat cigarettes is to offer users another alternative to traditional tobacco products that will not become addictive. “I want to give smokers the freedom to choose; if they want to smoke, they can smoke; if they don’t, then they don’t have to. I think that is a very important freedom we want to give back to smokers. That’s ultimately why we exist.”

    Taat cigarettes are designed to offer users an alternative to traditional tobacco products that will not become addictive.

    Coscarella hopes Taat’s new products will allow smokers to make a choice—continue smoking traditional cigarettes or using vapor products, all with some level of nicotine in them, or switch to Taat, which offers the ritual of traditional cigarettes but does not contain any addictive drugs. Coscarella believes that choice is important. “I don’t think nicotine is the main reason people smoke; if it were, then for everybody who wants to quit, the [nicotine] patch would work. … If it were, then the vapes and the heat-not-burn products would have a higher long-term efficacy rate with actual smokers because I’m just giving you nicotine. But they don’t. [Smokers] go back [to smoking traditional combustible cigarettes] because there’s a certain ritualistic component on the other side that none of these other things have. I think it’s important to try to match that ritual where I think the low-nicotine products obviously would have something from that standpoint, but you still have a physiological piece that needs to counterbalance somehow.”

    Low-nicotine products are attempting to “fix” the smoking problem—the idea behind these products is that smokers can switch to low-nicotine cigarettes and then eventually stop smoking. However, Coscarella does not think they will work very well. “You haven’t replaced it [nicotine] with anything. You’re just giving your consumers less of something.” Taat, however, aims to avoid that issue by replacing the nicotine with CBD in the products. Many people erroneously think that cigarettes calm them down, according to Coscarella, when in reality they feel calm after smoking only because they were experiencing nicotine withdrawal. Smoking provides the nicotine your body was craving. Taat products can give consumers that calming feeling to counteract the feeling generated from nicotine withdrawal, thanks to the CBD in the Beyond Tobacco filler.

    Taat products will soon be on the market; on Dec. 11, products will be shipping to Ohio distributors for sale. Each pack will retail for $3.99—allowing users of any cigarette brand to afford Taat—and will be available for purchase by those aged 21 or older. Taat will have online age verification for purchases through its website and much like tobacco, will work with retailers to ensure their customers are of legal age as well. “We’ll have a self-declaration online, so someone should be over the age of 21. And then from a retailer standpoint, they should endeavor to police this as they do any combustible cigarette product that they would otherwise sell,” said Coscarella.

    Currently, hemp is not regulated in the same ways that tobacco and vapor products are. Outside of the Farm Bill, regulations vary from state to state, and hemp products are not under the oversight of the U.S. Food and Drug Administration (FDA) or subject to anti-smoking bills or certain federal, state or municipal excise taxes. “That being said,” said Coscarella, “it’s imperative that we’re able to communicate what the value of this product is from a societal standpoint,” in much the same way that the premarket tobacco product application (PMTA) process aims to do with tobacco products.

    Coscarella believes the FDA will eventually get involved with hemp. “If cannabis were to be legalized—depending on how the election pans out—it’s likely that it will require regulation, and if that happens, I don’t think they’ll carve out hemp. No different than how it was done in Canada. When they passed the Cannabis Act—the Cannabis Act encompasses both cannabis and hemp.” So while Taat isn’t currently faced with major restrictions, that could change.

    Much like the rest of the world, the Covid-19 pandemic has affected the launch and marketing of Taat. While in-person events would help with building the buzz, Coscarella said, the company’s marketing plan will be heavily online-based. “I think you get a better return on investment from a digital ad that can be served to somebody when they’re in the time to see it.”

    Taat cigarettes will be an interesting addition to the ever-changing smoking industry. As the company prepares to roll out this initial product, Coscarella is already looking ahead. “I think there are other areas within the tobacco space that would be interesting for us to look at, whether it be through different delivery mechanisms or different formats. … But initially, I think the exercise is to go after the biggest category and build a family of brands that can help capture some of those ancillary areas.”

  • Cigar Industry Booms Amid Lockdowns

    Cigar Industry Booms Amid Lockdowns

    Photo: Tobacco Reporter archive

    Coronavirus lockdowns worldwide are proving to be a boon for the Dominican Republic’s cigar industry, reports Bloomberg.

    Already the world’s largest cigar producer, the Caribbean nation is on track to export a record $1 billion worth of tobacco products this year, up 6 percent over the $942 million it sold abroad in 2019, according to government figures.

    The cigar industry has emerged as a bright spot for the region’s largest economy, which is expected to shrink 5.5 percent this year, as its critical tourism and services sectors are impacted by coronavirus-related restrictions.

    The Dominican Republic is thought to be one of the birthplaces of the cigar; islanders were rolling and smoking tobacco centuries before Columbus set foot on the island. When Cuba nationalized its cigar industry during the 1959 revolution, many of the top growers moved to the neighboring island, propelling the Dominican industry.

    Hendrik Kelner, president of the Association of Dominican Cigar Manufacturers isn’t surprised by the resilience of the “puros.” With cigar afficionados around the world unable to frequent bars and restaurants, they’re spending more money and time on their smoking habit,” he said.

    “A cigar,” said Hendrik, “is like a loyal friend who accompanies you when times are tough and you’re lonely.”

  • Minimum Price Challenge Rejected

    Minimum Price Challenge Rejected

    Photo: Okan Caliskan from Pixabay

    A U.S. federal judge has denied a request to halt the portion of a tax measure that established a minimum price for cigarettes in Colorado.

    In the November general election, Colorado voters approved a proposition that set the price of cigarettes to at least $7 per pack.

    Three manufacturers of discount cigarettes—Liggett Group, Vector Tobacco and Xcaliber International— plus Littleton resident and smoker Jennifer A. Smith, filed a federal complaint, asking for a preliminary injunction to prevent the price floor from taking effect.

    The plaintiffs had argued that the provision violated the Commerce Clause of the U.S. Constitution by discriminating against them, with benefits accruing to in-state retailers of cigarettes. By establishing a price floor, they contended, any money not remitted to the state in the form of taxes would accrue to the sellers of cigarettes.

    However, U.S. District Judge Raymond P. Moore deemed unpersuasive the claim that the discount cigarette companies competed not only with premium cigarette manufacturers like Philip Morris but also with the Colorado-based retail establishments that dispense the products.

    Moore also decided the minimum price provision did not place an unconstitutional burden on interstate commerce, even though it does put burdens on certain manufacturers. The provision will now take effect on Friday.

  • Anti-Tobacco Activist Joins U.S. Covid Team

    Anti-Tobacco Activist Joins U.S. Covid Team

    Bechara Choucair
    (Photo: Kaiser Permanente)

    President-Elect Biden has appointed Bechara Choucair as vaccinations coordinator of the White House Covid-19 response team.

    Choucair is senior vice president and chief health officer for Kaiser Permanente and a board member of the Campaign for Tobacco-Free Kids (CTFK). Previously, he served as Chicago’s public health commissioner.

    Choucair will step down from his board position at CTFK as he assumes his new position. 

    “In appointing Dr. Choucair as vaccinations coordinator, President-Elect Biden has chosen an extraordinarily experienced and capable public health and medical leader,” said Matthew L. Myers, president of the CTFK, in a statement. “We congratulate Dr. Choucair and look forward to working with him in the future.”

  • Bangladesh: New Factory Draws Ire

    Bangladesh: New Factory Draws Ire

    Health activists have criticized plans to build a new tobacco factory in Bangladesh, reports The Financial Express.

     Asian Tobacco recently signed an agreement with the Bangladesh Export Processing Zones Authority (BEPZA) to establish a modern cigarettes and tobacco processing plant in the Ishwardi Export Processing Zone.

    The company will reportedly invest $2 billion to produce 1.2 billion cigarettes and 73,205 kg of tobacco annually.

    Voices for Interactive Choice & Empowerment (VOICE) said the move goes directly against Prime Minister Sheikh Hasina’s vision to make Bangladesh a tobacco-free nation by 2040.

    “Permitting a tobacco company to establish a new factory in the country directly contradicts with the prime minister’s vision and what she said back in 2016 in the South Asian Speaker’s Summit on achieving the sustainable development goals,” said VOICE Executive Director Ahmed Swapan Mahmud.

    “If things continue this way, becoming a tobacco-free country by 2040 will remain as a dream.”

     

  • Funding for Covid-19 Antigen Research

    Funding for Covid-19 Antigen Research

    Photo: Tobacco Reporter archive

    The European Investment Bank (EIB), the Foundation for Innovative New Diagnostics (FIND) and several South African funders have pumped almost ZAR900 million ($61.4 million) into Cape Bio Pharms to further Covid-19 antigen and antibody research using tobacco plants.

    The South African company, which has roots in the University of Cape Town’s Biopharming Research Unit, is investigating plant-based rapid diagnostic Covid-19 test kits to provide an affordable alternative to developing nations, according to a report by Business Insider.

    The EIB funding, which accounts for 70 percent of the total project cost, will be used to open a new Covid-19 research facility operated by Cape Biologix Technologies, a subsidiary of Cape Bio Pharms, in Mauritius.

    Funding from FIND, which covers a further 7 percent of the project costs, will be used to scale up the pilot production program currently underway in Cape Town.

    The Mauritius facility will feature laboratories, processing plants and climate controlled hydroponic grow rooms to provide stable plant-made proteins to combat Covid-19. Cape Bio Pharms’ research has focused extensively on the use of Nicotiana Benthamiana, which contains nicotine and alkaloids similar to those found in the tobacco plants used for making cigarettes.

    Indigenous to Australia, Nicotiana benthamiana has impressive biopharming properties. It adjusts well to genetic engineering and reproduces proteins at a superior rate.

    Cape Biologix Technologies aims to turn the Nicotiana benthamiana plants into antibody production centers that can later be extracted and applied to use in rapid antigen tests and even vaccines.

    Rapid antigen tests detect viral proteins associated with Covid-19 through samples gathered from the respiratory tract. Results can be determined within 30 minutes.

    Plant-based vaccines, like the one being studied by Cape Bio Pharms, have the advantage of being stable at room temperature unlike the Pfizer/BioNTech dose which needs to be kept at -70 degrees Celsius.

    Around the world, multiple efforts are underway to combat Covid-19 using tobacco plant technology.

    Recently, British American Tobacco subsidiary Kentucky BioProcessing announced plans to commence a Phase I first-time-in-human study of its Covid-19 vaccine candidate following approval of its investigational new drug application by the U.S. Food and Drug Administration.

    In July, Medicago, a Quebec-based biotechnology company backed by Philip Morris International and other investors, also started human trails for a tobacco-based Covid-19 vaccine.

    Researchers in Thailand, too, are developing a tobacco-based Covid-19 vaccine.

  • Trade Body Objects to Flavor Restrictions

    Trade Body Objects to Flavor Restrictions

    Photo: Tobacco Reporter archive

    The Philippine E-Cigarette Industry Association (PECIA) is urging Senator Ralph G. Recto to reconsider his proposal to limit the flavors available for vapor products to just tobacco and menthol, reports Business World.

    Senate Bill (SB) No. 1951, or the proposed Vaporized Nicotine Products Regulation Act, seeks to regulate the importation, manufacture, packaging, distribution, use and promotion of vapor products and heated tobacco products (HTPs).

    The bill imposes an 18-year minimum age for the purchase, sale and use of these products. It also prohibits vendors from selling vapor products within 100 meters of a school, playground and other similar facilities.

    “We are supportive of the proposal filed by Senator Recto. We believe that our products should not be made available to minors,” said PECIA President Joey Dulay.

    “We also share his objectives of ensuring that proper product standards are put in place and that these are implemented by an able and impartial government regulator.”

    But while acknowledging that some flavors target youth, Dulay noted that there are also many flavors that are not attractive to kids and have been shown to help adult smokers to switch to these products. As examples, he cited coffee, tea and plain fruit flavors.

    Dulay noted that in the U.K., a wide range of flavors is offered for vapor products, which nevertheless have low youth uptake rates. He said this proves that a good law and its proper implementation are key to preventing minors from accessing such products.

  • Mississippi Prisons to Allow Smoking in 2021

    Mississippi Prisons to Allow Smoking in 2021

    Photo: ErikaWittlieb from Pixabay

    Inmates in Mississippi’s prison system will be allowed to smoke starting Feb. 1, reports the Associated Press, citing the head of state’s prison system. The move is designed to break the trade in contraband tobacco that’s smuggled inside.

    Smoking has been banned for a decade in the Mississippi’s 21 prisons and other facilities, but Corrections Commissioner Burl Cain said in a news release Wednesday that some inmates have been lighting up anyway.

    Deputy Commissioner Jay Mallett said inmates have been paying up to $500 a pound for smuggled tobacco, and those caught smoking have lost the chance for early release.

    Profits from prison tobacco sales will help pay for remedial courses so inmates can earn high school diplomas.

    According to the American Nonsmokers’ Rights Foundation and other websites, 27 other state correctional departments, including New York, California and Illinois, allow smoking outdoors at prisons, with 15 also allowing the use of other tobacco products.

  • Trump Signs Ban on E-Cigarette Shipments

    Trump Signs Ban on E-Cigarette Shipments

    U.S. President Donald Trump signed a $2.3 trillion coronavirus relief and government funding bill into law Sunday night, averting a government shutdown that was set to begin on Tuesday.

    Initially, Trump had refused to sign the legislation, calling on Congress to increase stimulus payments from $600 to $2,000 and to get rid of “wasteful and unnecessary items.” The president signaled in a statement Sunday night that he signed the coronavirus relief bill only after securing a commitment for the Senate to consider legislation to increase stimulus checks.

    For the nicotine industry, the bill is significant because it contains a provision prohibiting the U.S. Postal Service from delivering e-cigarettes.

    It also subjects e-cigarettes to other rules that currently govern online cigarette sales. Among other things, online retailers will be required to use private shipping services that collect an adult signature at the point of delivery, collect all applicable local and state taxes, and send each taxing state’s tax administrator a list of all transactions with customers in their state.

    Critics said the legislation would place a considerable burden on vapor companies, increasing cost and paperwork.

    The new rules could go into effect as soon as 120 days.

  • UKVIA Pleads to Keep Vape Shops Open

    UKVIA Pleads to Keep Vape Shops Open

    Photo: VPZ

    The U.K. Vaping Industry Association (UKVIA) is calling on the government to reconsider classifying vape shops as essential retail, as parts of the U.K. enter restrictions under tier 4 and with potential lockdowns following in the new year.

    John Dunne

    “It’s not just about providing a lifeline to vape businesses but also to vapers and smokers for whom vaping represents a life changing decision, especially at this time of year,” said John Dunne, director general of the UKVIA, in a statement.

    “As smokers make New Year resolutions, we should remember that earlier this year Public Health England acknowledged the contribution played by vaping in helping smokers quit and the Royal College of Physicians has found that e-cigarettes are effective in helping people to stop smoking. Recent research has again highlighted that vape products are much more effective than NRTs [nicotine-replacement therapies] in helping smokers give up.”

    Dunne said that vape retail stores are well equipped to be COVID compliant. “Our stores do not deal with the high volumes of traffic like other outlets and are easily able to control the number of customers in a store at any one time,” he said.

    “We want to make sure that smokers who might be aiming to quit in the New Year, and those who already vape, can continue to gain access to vape devices, e-liquids, and specialist advice that our members can offer.”