Author: Staff Writer

  • Imperial Sells New Zealand Factory

    Imperial Sells New Zealand Factory

    Photo: Tobacco Reporter archive

    Imperial Tobacco announced that it has sold its Petone (New Zealand) production facility to a real estate developer and will discontinue its operations at the facility by
    Sept. 30. In Feb. it was reported that the factory’s closure would mean the loss of 122 jobs.

    The Petone plant predominantly supplies Imperial Tobacco’s products to the Australasian market and is the company’s only factory in New Zealand or Australia.

    Located in a popular suburb, the site measures 2.25-hectare and includes a warehouse along with manufacturing and office buildings

    The site had been an important part of the Petone economy for around 90 years. W.D and H.O Wills Limited started manufacturing cigarettes in suburb around 1930, after establishing their business in Wellington in 1919 and needing to expand.

    Imperial Tobacco had owned the site since the late-1990s

    All production at the facility will be taken up by an Imperial facility in Taiwan.

  • Russia Adopts Bill to Restrict Vapor Products

    Russia Adopts Bill to Restrict Vapor Products

    The State Duma MPs in Russia have adopted a bill restricting the use of electronic cigarettes and hookahs.

    According to a statement from the lawmaking authority, the measure sets restrictions on the use of electronic nicotine delivery systems (ENDS) and hookahs inside certain territories, premises and objects; issues requirements for demonstration of electronic smoking articles in audiovisual works for minors and adults.

    Moreover, the document restricts the sale of vapor products and bans their sale to minors and involvement of children in the use of them, according to a Russian state information agency.

    There is also a proposal to introduce administrative fines for violations of the imposed restrictions.

  • Pyxus Receives Major Support From Creditors for Plan

    Pyxus Receives Major Support From Creditors for Plan

    Pyxus International, a global value-added agricultural company, announced that its Prepackaged Plan of Reorganization of Pyxus International and its Affiliated Debtors was overwhelmingly approved by each class of creditors entitled to vote.

    Of those that submitted ballots, holders of 100 percent of first lien notes (holding over $266 million of principal) and over 99 percent of the second lien notes (holding over $524 million of principal) voted in favor of the Prepackaged Plan.

    In addition, on July 22, 2020, the Bankruptcy Court presiding over the company’s Chapter 11 cases approved the company’s entry into a commitment letter for a $75 million revolving credit facility to be provided by Sound Point Capital upon the effective date of the Prepackaged Plan, subject to satisfaction or waiver of certain conditions.

    “The level of support from our first lien and second lien noteholders in favor of the Prepackaged Plan, and the commitment from Sound Point to finance the company’s go-forward working capital needs, reflects their collective confidence in our proposed restructuring transaction and future business strategy,” said Pieter Sikkel, Pyxus’ president and CEO. “The Company looks forward to working with its creditors and its other constituents to complete its restructuring process and emerge from the Chapter 11 in the near term.”

    The hearing to consider approval of the Prepackaged Plan is scheduled for August 18, 2020 at 9:30 a.m. ET.

  • Curbing Vapor and Hookah

    Curbing Vapor and Hookah

    Photo: Demerzel21 | Dreamstime.com

    Russian lawmakers have adopted a bill restricting the use of electronic cigarettes and hookahs.

    According to a statement of the lawmaking authority, the document sets restrictions on the use of electronic nicotine delivery systems and hookahs inside certain territories, premises and objects; issues requirements for demonstration of electronic smoking articles in audiovisual works for minors and adults.

    Moreover, the document restricts the sale of vapor products and bans their sale to minors and involvement of children in the use of them, according to a Russian state information agency.

    There is also a proposal to introduce administrative fines for violations of the imposed restrictions.

  • Support for Pyxus Reorganization Plan

    Support for Pyxus Reorganization Plan

    Photo: Pyxus International

    Creditors have approved Pyxus International’s plan for reorganization, the agricultural company announced today.  

    Of those that submitted ballots, holders of 100 percent of first lien notes (holding over $266 million of principal) and over 99 percent of the second lien notes (holding over $524 million of principal) voted in favor of the Prepackaged Plan.

    In addition, on July 22, 2020, the Bankruptcy Court presiding over the company’s Chapter 11 cases approved the company’s entry into a commitment letter for a $75 million revolving credit facility to be provided by Sound Point Capital upon the effective date of the prepackaged plan, subject to satisfaction or waiver of certain conditions.

    “The level of support from our first lien and second lien noteholders in favor of the Prepackaged Plan, and the commitment from Sound Point to finance the company’s go-forward working capital needs, reflects their collective confidence in our proposed restructuring transaction and future business strategy,” said Pieter Sikkel, Pyxus’ president and CEO. “The company looks forward to working with its creditors and its other constituents to complete its restructuring process and emerge from the Chapter 11 in the near term.”

    The hearing to consider approval of the prepackaged plan is scheduled for August 18, 2020 at 9:30 a.m. ET.

     

  • Cigar Makers and FDA Meet About Rules

    Cigar Makers and FDA Meet About Rules

    Photo: Tobacco Reporter archive

    Attorneys representing U.S. cigar makers met with the Food and Drug Administration (FDA) to present arguments as to whether part or all of FDA’s deeming regulations should be thrown out or modified, reports Halfwheel.

    The two-hour meeting, which took place via a videoconference, primarily concerned the substantial equivalence process, is part of the ongoing Cigar Association of America et al. v. United States Food and Drug Administration et al. case.

    In previous rulings, Judge Amit P. Mehta of the U.S. District Court for the District of Columbia removed the requirements for warning labels on premium cigars, while siding with the FDA on other issues.

    On the subject of extending the Sept. 9 submission date once again, the FDA said that it would not request a further extension while Department of Justice attorney Garrett Cole noted that if an extension did occur, it would be a two-month extension.

  • Dissolution of Burley Association Debated

    Dissolution of Burley Association Debated

    Photo: John Lambeth from Pixabay

    Members of the Burley Tobacco Growers Cooperative Association are working towards a proposal to dissolve the organization that would lead to cash payouts for thousands of burley growers in Kentucky.

    Under the proposal deal, the co-op would liquidate its investments and sell its property, which includes four million pounds of tobacco and the headquarters building located in Lexington, Kentucky. Lawyers working on the proposal said that at least $20 million would be available to growers after debts, costs and attorney fees have been settled.

    The money would be distributed equally to the 3,200-3,500 growers who were members of the cooperative from the 2015 crop year through the 2019 year. If there is $20 million available and the final membership class is 3,200 growers, the cash payment would be $6,250 to each grower.

    The proposal also will allocate $1.5 million towards a new organization that would advocate the interests of tobacco growers.

    Fayette Circuit Judge Julie M. Goodman has been assigned to approve the settlement and has scheduled a hearing July 29 to clarify issues in the proposal. If approved, the payment would be doled out in several parts with the first check to be sent by the end of the year.

  • PMI Quarterly Results ‘Above Expectations’

    PMI Quarterly Results ‘Above Expectations’

    Photo: Taco Tuinstra

    Philip Morris International (PMI) has released its second-quarter results and reinstated its 2020 forecast.
     
    Diluted earnings per share were down by 16.1 percent, and net revenues were down by 13.6 percent. Operating income was down by 14.3 percent.
     
    Market share for heated-tobacco units in IQOS markets rose by 1.8 points to 6.3 percent.
     
    “Despite a very challenging quarter due to the pandemic, we delivered results above our previously communicated expectations for both net revenues and reported diluted EPS,” said Andre Calantzopoulos, PMI’s chief executive officer.
     
    “This primarily reflected favorable sequential performance in June, with a strong industry volume recovery—notably in the higher margin EU region—and substantial IQOS user acquisition growth as well as the benefit of certain nonunderlying factors, some of which we expect to reverse in the third quarter.”
     
    PMI reinstated its 2020 full-year forecast after withdrawing it in April due to uncertainty surrounding the Covid-19 pandemic. The “forecast represents a projected increase of approximately 2 percent to 5 percent versus pro forma adjusted diluted earnings per share of $5.13 in 2019,” according to PMI.

  • IMS Partners With Reifenhauser

    IMS Partners With Reifenhauser

    Photo: Goebel

    IMS Technologies has partnered with Reifenhauser India Marketing Private Limited to reinforce its presence in the Indian market.
     
    “Considering the rapid growth of the converting business in India, it is necessary for the group to further strengthen its presence in the country and to refine its market penetration strategy. Thanks to this partnership, we will be able to improve our support to the existing customers and to approach the new ones more effectively,” said Marino Ferrarese, group sales and marketing director.
     
    Starting in July 2020, Reifenhauser India Marketing Private Limited will represent Goebel IMS. Laem IMS and Rotomac brands will also be available on the market.
     
    “IMS Technologies with its brands Goebel IMS, Laem IMS and Rotomac represents state-of-the-art technologies in the slitting, rewinding and packaging fields. We are very proud to be their representatives in the Indian market,” said Manish Mehta, founder of Reifenhauser India Marketing Private Limited.

  • KT&G Africa Launches Ice Kula Low-Odor Brand

    KT&G Africa Launches Ice Kula Low-Odor Brand

    Photo: KT&G

    KT&G will launch Africa Ice Kula on July 22.

    According to KT&G, the new product will increase “coolness” and reduce bad breath.

    The Africa Ice Kula is the first of the Africa brands to apply KT&G’s “smell care” technology—an innovation that reduces the smell of cigarettes in the mouth after smoking. It also produces a stronger coolness than the products of the previously released Discover Africa brand.

    The Africa brand, which was launched in 2013, became popular among young adults seeking differentiated taste. In particular, the Africa Ice Kula is the first deodorant product of the Africa brand and will provide a satisfactory option for consumers who prefer clean smoking.

    KT&G Brand Manager Moon Sung-hwan said, “The Africa Ice Kula is a product that further enhances the coolness and neatness in the summer season. It will satisfy everyone.”