Author: Staff Writer

  • New Leadership at Philippines’ National Tobacco Administration

    New Leadership at Philippines’ National Tobacco Administration

    Photo: PMFTC

    Philippine President Rodrigo Duterte appointed Robert Victor Seares Jr. as administrator and chief executive officer of National Tobacco Administration (NTA) on June 10, reports The Philippine Star.

    Seares took his oath before Malabon Regional Trial Court Judge Josie Rodil in a ceremony held at the NTA central office in Quezon City.

    Previously the mayor of Abra, Seares Jr. replaces his father, Robert Seares Sr., who died on March 19 this year.

    Seares Jr. vowed to continue the programs that his father started as well as protect the welfare of tobacco farmers.

    An agency of the Department of Agriculture, the NTA aims to promote the interest of tobacco farmers and other industry stakeholders.

  • Andhra Pradesh to Intervene in Tobacco Auctions

    Andhra Pradesh to Intervene in Tobacco Auctions

    Photo: Taco Tuinstra

    The government of Andhra Pradesh said it will intervene in the tobacco auction to address pricing problems, reports The New Indian Express.
     
    “In the next two [days] to three days, a special committee will be formed to solve tobacco farmers’ problems,” said Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy on June 18.
     
    In addition to fixing minimum prices for all tobacco qualities, the state government will require all licensed traders to participate in the auctions.
     
    Nearly 20 million kg of low-grade and medium-grade varieties of tobacco, which account for most of the produce, have been rejected by traders this year. Growers also complained that buyers were staying on the sidelines. Of the 920 companies licensed to buy tobacco, fewer than 15 were participating in the auction, the growers said.

  • China Tobacco’s Overseas Unit Issues Profit Warning

    China Tobacco’s Overseas Unit Issues Profit Warning

    China Tobacco International exports cigarettes and imports tobacco leaf from overseas markets.
    Photo: Taco Tuinstra

    China Tobacco International (CTI) warned its revenue and net profit may slump by 50 percent to 60 percent from a year ago during the first half of this year.
     
    The company attributed the drop to seasonal fluctuation in the import of tobacco leaf products from Brazil. Also, the sales volume of cigarettes in duty-free outlets in China and the relevant regions declined significantly because of the drop in passenger traffic amid the coronavirus pandemic, the company said.
     
    A subsidiary of the China National Tobacco Corp.—the world’s largest cigarette manufacturer—CTI primarily procures leaf tobacco for its parent company, earning revenue mainly from a fixed markup on the sale of leaves to domestic cigarette makers.
     
    The international unit is also the sole exporter of Chinese cigarette brands such as Yuxi and Hongtashan to duty-free outlets. In May 2018, it began exporting heat-not-burn tobacco products made in China.

    In June 2019, shares of CTI started trading on the Hong Kong Stock Exchange.

  • Pyxus to Delist From New York Stock Exchange

    Pyxus to Delist From New York Stock Exchange

    Photo: skeeze from Pixabay

    The New York Stock Exchange (NYSE) has commenced proceedings to delist Pyxus International. Trading in Pyxus’ common stock has been suspended.

    The NYSE determined that Pyxus is no longer suitable for listing under after the company filed for relief under Chapter 11 of the United States bankruptcy code. Pyxus does not intend to appeal the NYSE’s determination.

    Pyxus’ common stock began to be quoted on the OTC Pink marketplace on June 17, 2020, under the symbol PYXSQ. Investors can find quotes for the company’s common stock on. 

    Pyxus does not expect a transition to the OTC Pink marketplace to affect the company’s operations. 

    “The company can provide no assurance that its common stock will continue to trade on this market, whether broker-dealers will continue to provide public quotes of the company’s common stock on this market, whether the trading volume of the company’s common stock will be sufficient to provide for an efficient trading market or whether quotes for the company’s common stock may be blocked by OTC Markets Group in the future,” Pyxus wrote in a statement.

  • South Korea to ‘Refresh’ Tobacco Health Warnings

    South Korea to ‘Refresh’ Tobacco Health Warnings

    Photo: KT&G

    South Korea will introduce new graphic warning images this year, reports the Yonhap News Agency.  
     
    Of the 12 photos currently used on cigarette packs, nine will be replaced with new images starting Dec. 23, the Ministry of Health and Welfare said.
     
    The new images will highlight the greater chances of smokers contracting lung and oral cancer, heart disease, stroke and early death, as well as the dangers of secondhand smoking and smoking during pregnancy.
     
    Warning images showcasing the heightened risk of laryngeal cancer, sexual dysfunction and dangers posed by electronic cigarettes will be retained as they have been shown to be effective in enhancing risk awareness, according to the ministry.
     
    South Korea’s rules require 75 percent of a cigarette pack to be covered in warning images and text. Images must account for 55 percent of the packs with both the front and back required to show graphic pictures. These images need to be revised every 24 months.

  • Co-founder Resigns From Boikon

    Co-founder Resigns From Boikon

    Jeroen Oosterhof (right) and Erik Oosterhof

    Jeroen Oosterhof has announced his resignation as co-director and co-owner of Boikon, a Dutch engineering firm that develops track-and-trace solutions for the tobacco industry, among other technologies.

    Oosterhof founded Boikon almost 25 years ago with his brother Erik Oosterhof in an attic, where they made technical drawings. The firm has experienced considerable growth and evolved into a leading technological innovator serving a wide variety of industries.  

    In 2018, Boikon won a Tobacco Reporter Golden Leaf Award in the Most promising product introduction category for its Djura technology. 

    Erik will acquire Jeroen’s shares in Boikon and continue the company’s day-to-day management.

    “Boikon is a great company with nice colleagues and relations,” said Jeroen. “I have full confidence in Erik continuing the company and wish Boikon and all her relations a bright future.”

  • Court Ordered to Reconsider Immunity in ‘Dalligate’

    Court Ordered to Reconsider Immunity in ‘Dalligate’

    Photo: Csaba Deli | Dreamstime.com

    Europe’s top court on June 18 sent back to a lower court a dispute over immunity in a political scandal involving Swedish smokeless tobacco and millions of dollars in bribes, reports Court House News Service.

    The European Court of Justice (EJC) found that a lower court erred in its decision to side with the former head of the European Union’s anti-fraud office, Giovanni Kessler, whose immunity from prosecution had been rescinded by the European Commission following allegations of illegal wiretapping.

    The case dates from 2012, when Maltese politician John Dalli either resigned from or was forced out of his post as the European commissioner for health and consumer policy following allegations of bribery.

    An investigation by the EU anti-fraud office OLAF found that an associate of Dalli, Silvio Zammit had demanded €60 million ($67 million) from Swedish Match to lift a ban on snus, which is legal in Sweden but outlawed in other EU member states.

    Dalli denied he had any knowledge of the bribe. He brought several complaints about his resignation controversy to the court in 2015, which he all lost.

    During the OLAF probe, investigators allegedly listened in to a conversation with a witness in the investigation. The information wasn’t used in the investigation, but the actions would be a violation of Belgian wiretapping laws. 

    The case now returns to the General Court for another decision.

  • Australia Extends Nicotine Vape Ban

    Australia Extends Nicotine Vape Ban

    Photo: Haiberliu from Pixabay

    E-cigarettes containing nicotine will remain illegal in Australia for at least another year, reports The Daily Mail.

    The federal government is extending a ban on the importation of such products unless prescribed by a doctor.

    The ban will remain in place for 12 months to allow for public consultation on the regulation of nicotine products by the Therapeutic Goods Administration.

    Under the ban, Australians would still be able to vape nicotine if their doctor provides a prescription.

    They would get their e-cigarettes or refills via a permission granted by the health department to a doctor or medical supplier who would be able to import the goods using a courier service or by cargo service.

    The goods cannot be imported through international mail.

    The Australian Medical Association (AMA) welcomed the decision, saying that vaping is not a healthy alternative to smoking.

    “Nicotine is a highly addictive substance and there is no level of tobacco use which is safe,” AMA Vice President Chris Zappala said.

  • KPMG: EU Illicit Cigarette Market at Record Low

    KPMG: EU Illicit Cigarette Market at Record Low

    Photo: Tobacco Reporter archive

    The European market for illicit cigarettes reached a record low in 2019, even as consumption of counterfeits continues to grow, according to a KPMG study commissioned by Philip Morris International (PMI).

    In 2019, EU consumers purchased 38.9 billion illicit cigarettes—the lowest number since the KPMG study first took place in 2006. The figure represents represented 7.9 percent of total EU cigarette consumption, 0.7 percentage points less than in the previous year.

    Despite the overall decline of illicit cigarette consumption, which continued for the seventh consecutive year, the consumption of counterfeit cigarettes continued to grow, reaching 7.6 billion, a 38.3 percent increase compared to 2018 and the highest level recorded to date.

    “The continued decline of illicit tobacco trade in the EU is a positive development and reinforces the importance of supply chain control measures, strict enforcement, and collaboration in combating this issue,” said Alvise Giustiniani, vice president of illicit trade prevention at PMI.

    “We must remain focused on these collective efforts, as there continue to be worrying trends like the increase of counterfeit cigarettes and the persisting problem of illicit whites. The first ever EU-wide tracking and tracing system that was introduced last year under the European Tobacco Products Directive is an important tool for law enforcement and one that we should continue to enhance through close collaboration and information-sharing to remain highly vigilant on emerging risks.”

    Graphic: KPMG

    According to PMI, illicit trade undermines efforts to reduce smoking prevalence and makes unregulated tobacco products easily accessible. “For PMI to deliver a smoke-free future and enable millions of people who would otherwise continue to smoke to switch to better alternatives to cigarettes, it’s essential to eliminate illicit tobacco trade wherever it exists,” the company wrote in a statement.

    Interviews with law enforcement conducted by KPMG as part of the study indicate that the manufacture of illicit whites and counterfeit cigarettes in illegal factories located in the EU is increasing. Insights from law enforcement also refer to emerging organized crime groups that specialize in the smuggling and sale of illicit raw tobacco.

    Other report findings reveal that:

    • Counterfeit cigarettes represent 19.5 percent of total illicit cigarette consumption. Compared to 2018, the biggest increases in counterfeit consumption occurred in the U.K. (by 137 percent, to 2.1 billion cigarettes) and France (by 82 percent, to 840 million cigarettes).
    • Illicit whites continue to be a major element of illicit cigarette consumption, representing 35.6 percent of illicit consumption in the EU, or 13.8 billion cigarettes, up from 29.8 percent in 2018.
    • For the first time since the research began in 2006, counterfeit cigarettes and illicit whites represent more than 50 percent of total illicit cigarette consumption in the EU.
    • The countries with the largest volumes of illicit cigarette consumption in the EU were France, with 7.2 billion illicit cigarettes, and the U.K., with 5.5 billion illicit cigarettes.
    • The highest shares of illicit cigarette consumption were found in Greece (22.4 percent), Lithuania (17.7 percent), and Ireland (17.5 percent). Compared to 2018, both Greece and Ireland saw a declining trend in illicit cigarette consumption, while Lithuania marked a slight increase.
    • Illicit flows from identifiable markets outside the EU, such as Ukraine and Belarus, continued to decline. However, illicit products reportedly originated from within the EU—and destined to another EU country—increased in 2019.
  • BAT May Move Rovinj Factory Out of Croatia

    BAT May Move Rovinj Factory Out of Croatia

    Photo: TDR

    British American Tobacco (BAT) might relocate its Kanfanar tobacco factory in Croatia to another country, Croatian media reported.

    A move could cause 500 employees to lose their jobs and would leave the Istrian peninsula without one of its industrial symbols.

    The Kanfanar factory produces some 12 billion cigarettes per year. Its annual production capacity is 20 billion units.

    BAT acquired the cigarette factory in 2015 when it took over local tobacco producer Tvornica Duhana Rovinj.