Author: Staff Writer

  • K&H Presents Tobacco Law Symposium

    K&H Presents Tobacco Law Symposium

    Keller and Heckman will has announced the agenda for its sixth Annual E-Vapor and Tobacco Law Symposium.

    The two-day virtual seminar will focus on legal and regulatory issues critical to the vapor, tobacco and CBD industries in the aftermath of the U.S. Food and Drug Administration’s decisions on millions of premarket tobacco product applications (PMTA).

    Among other topics, the seminar will cover PMTA marketing denial order challenges, new requirements for PMTAs and substantial equivalence reports and the outlook for synthetic nicotine products.

    In addition to Keller and Heckman’s regulatory attorneys and scientists, this year’s program features numerous expert guest speakers, including from Tobacco Vapor Cannabis Group, the American Vaping Association, McKinney Regulatory Science Advisors and the Tax Foundation.

    The symposium will take place Feb 2-3 from 10:30 am to 6:30 pm Eastern Time.

  • BAT on Track to Meet 2025 Revenue Target

    BAT on Track to Meet 2025 Revenue Target

    Photo: BAT

    BAT is making “excellent progress” toward its £5 billion ($6.62 billion) revenue target by 2025, CEO Jack Bowles said in a trading update. New category products are now a sizable contributor to group revenue growth and will continue to profit growth for the first time as their losses start to reduce, he noted.

     “We are building strong, fast-growing, global brands of the future, adding another 3.6 million consumers of noncombustible products in the first nine months of the year—more than in all of 2020,” said Bowles.

     “Our strong focus on cash flow and deleveraging continues. We recognize the clear value of a share buyback at the current valuation. We also continue to be clear on the need to deliver on our 2021 commitment to reduce leverage to circa three times adjusted net debt/adjusted EBITDA and expect to reach this by the year end. This will provide greater capital allocation flexibility as we enter 2022.”

     According to BAT, the company’s Vuse vapor cigarette is approaching nationwide leadership with a 31.4 percent value share of the U.S. vapor market. Glo Hyper reached a category volume share of 17.7 percent in the top nine tobacco-heating products markets.

     Meanwhile, the company continued to enjoy value growth in combustibles, with strong pricing partially offset by geographic mix and the absorption of about £260 million profit impact in Australia and New Zealand.

  • Call for Class Action Status in Juul Overpayment Cases

    Call for Class Action Status in Juul Overpayment Cases

    Photo: steheap

    Lawyers representing U.S. consumers who say they overpaid for Juul Labs’ e-cigarettes on Dec. 6 urged a federal judge to certify their claims as a class action, reports Reuters. Juul argues that the plaintiffs should proceed individually because they bought Juul products under differing circumstances.

    More than 2,800 cases have been consolidated in the multidistrict litigation against Juul, its largest shareholder Altria Group and several individual officers and directors. They include both personal injury claims and claims of economic loss by people who say they would have paid less, or not bought the e-cigarettes at all, if Juul had not downplayed their addictiveness and appealed to teenagers through social media campaigns and other means.

    The plaintiffs are seeking partial refunds for adult purchasers and full refunds for underage purchasers.

    Gregory Stone of Munger, Tolles & Olson, representing Juul, said the plaintiffs’ case rested on whether Juul’s marketing was misleading, whether it targeted teenagers, whether buyers were actually misled and whether the marketing affected their buying decisions.

    In a tentative opinion, U.S. District Judge William Orrick said that he was inclined to grant class certification.

  • Tobacco Recognized for Environmental Initiatives

    Tobacco Recognized for Environmental Initiatives

    CDP has recognized Philip Morris International, Japan Tobacco, Imperial Brands and Altria Group for their environmental leadership.

    PMI received CDP’s “Triple A” score, recognizing the company’s environmental performance in tackling climate change as well as protecting forests and water security.

    “External validation from organizations like CDP encourages us to continue on our journey to create a net-positive impact on society,” said PMI Chief Sustainability Officer Jennifer Motles, in a statement. “We are humbled PMI has received CDP’s Triple A distinction for a second time.”

    Japan Tobacco made CDP’s A List for the third consecutive year.

    “We are delighted to be included in the CDP’s Climate Change A List and Water Security A List for the third consecutive year,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability, in a statement. “This clearly reflects our continued efforts to reduce our environmental footprint and expand our transparency in disclosing information.”

    Imperial Brands made CDP’s climate change A List for a third successive year.

    “We have a good track record in minimizing our impact on the environment and are committed to rapidly stepping up the decisive actions required to combat climate change,” said Imperial Brands Global ESG Director Tony Dunnag in a statement.

    Altria was recognized by CDP for a second consecutive year with a double A rating for tackling climate change and protecting water security.

    “We are committed to conserving the natural resources on which our businesses and communities rely,” said Jennifer Hunter, senior vice president, corporate citizenship at Altria in a statement. “As the latest science makes clear, the global community needs to quickly increase the ambition and progress of environmental targets, build climate resilient businesses and prepare for the net zero economy. Altria is committed to doing our part.” 

    CDP is a not-for-profit charity that runs a global disclosure system for investors, companies, cities and regions to manage their environmental impacts. Its process is acknowledged as the gold standard of corporate environmental transparency.

     The organization’s full 2021 A List of companies is available here.

  • Draft Menthol Standards Expected by April

    Draft Menthol Standards Expected by April

    Photo: Tobacco Reporter archive

    The U.S. Food and Drug Administration is on track to issue proposed product standards that could ban menthol as a characterizing flavor in cigarettes and ban all characterizing flavors in cigars by April 2022, reports CSP, citing FDA Center for Tobacco Products Director Mitch Zeller.

    Speaking on a webinar held on Dec. 2 by the National Association of Tobacco Outlets, Zeller said the effort is based on the clear scientific evidence related to the addictiveness and harm of menthol products.

     “Were these proposed product standards to be finalized and to go into effect, this will help to significantly reduce initiation by kids, increase smoking cessation among current smokers and, very importantly, address some profound health disparities when it comes to the use of these types of products by communities of color, low-income populations and the LGBTQ+ population,” he said.

    After the FDA publishes the proposed new rules, there would be a review and public comment period, meaning the bans wouldn’t take effect for between one to two years, if ever.

  • Smokers’ Rights Movement Protests Tobacco Control

    Smokers’ Rights Movement Protests Tobacco Control

    Photo: SRM

    The Smokers’ Rights Movement (SRM) called for greater public oversight of tobacco policies, with protesters donning body bags and magenta balloons at the World Health Organization’s headquarters in Geneva.

     “We are protesting the oppression of smokers and the lies of tobacco control,” said SRM founder Max Kosenko. “And we are fighting for smokers’ rights to access less lethal products.”

     According to the SRM, scientific research on tobacco harm reduction has been systematically ignored by governments, with deadly results. “Despite decades of spending on tobacco control, smoking remains the world’s leading cause of death, killing 20,000 people a day—three times more than Covid-19—and the number of smokers is increasing,” the organization wrote in a press note.

     “This is not a problem of bad habits; it’s a problem of bad products,” said Kosenko. “Nobody would tolerate another legal product that killed 50 percent of users. But instead of asking ‘Why do we still sell cigarettes?’ we blame smokers and ask, ‘When are they going to quit?’”

     Before the WHO was formed in 1948, governments worked on the question of how to make tobacco consumption safer, according to SRM. But later, focus shifted to the elimination of nicotine use. “No drug has ever been successfully eliminated through prohibition,” the organization wrote. “But harm reduction approaches can mitigate the health risks and save lives.”

  • Chinese Regulations to Reverberate Globally

    Chinese Regulations to Reverberate Globally

    Photo: Cultura Allies

    China’s recently announced intention to regulate e-cigarettes as tobacco products will reverberate around the world, according to an analyses published on Keller And Heckman’s The Continuum of Risk blog.

    On Nov. 26, 2021, China’s State Council announced it would amend the country’s tobacco monopoly law to subject e-cigarettes to the same requirements as traditional cigarettes. On Dec. 2, the State Tobacco Monopoly Administration (STMA) published on its website the draft management rules for e-cigarettes for public comment.

    The draft rules define “e-cigarette” as an electronic delivery product that produces nicotine-containing aerosol for human inhalation. The definition does not include heat-not-burn tobacco products, which are already regulated as combustible cigarettes in China, according to Keller and Heckman. The draft rules make clear that e-cigarettes should be regulated like tobacco products by STMA and its local agencies and provide that e-cigarettes must comply with the e-cigarette national standard.

    Among other things, e-cigarettes will be subject to premarket registration upon a safety review by the STMA under the draft rules. Producers and sellers of e-cigarettes in China must obtain the same tobacco monopoly licenses as traditional cigarette manufacturers. In addition, all vapor product companies will be required to trade on a national e-cigarette platform to be set up by the SMTA. The draft rules also contain requirements to protect minors such as age-restrictions and warning labels.

    Because the draft rules’ registration and production licensing requirements apply to all e-cigarette manufacturers operating in China, they will also impact products sold abroad. China manufactures more than 95 percent of the world’s e-cigarette hardware.

    In 2019, China notified the World Trade Organization about its first national standard on e-cigarettes, which covers raw materials, technical requirements, testing methods and labeling, among other topics. On Nov .30, 3021, China published updated draft of the standard for comment.

    According to Keller and Heckman, the STMA plans to implement the standard “three to five months after its publication.”

    During the transition period, existing enterprises can continue manufacturing and operational activities. However, investors are banned from investing in new e-cigarette enterprises; existing e-cigarette production and operation entities must refrain from constructing or expanding production capacity, and they may not establish new e-cigarette retail outlets and market new products. “New import of e-cigarettes” will also be suspended during this period.

    The public comment period for the draft management rules closes on Dec. 17, 2021, 15 days after its publication, and the public comment period for the draft standard closes on Jan. 29, 2022.

  • Former Habanos President Joins Carrillo

    Former Habanos President Joins Carrillo

    Photo: primipil

    E.P. Carrillo has hired Jorge Luis Fernandez Maique, a former Habanos executive, as its new general manager, according to Halfwheel.

    Maique will oversee the operations of Tabacalera La Alianza, the company’s factory in Santiago, Dominican Republic, a move that will free up Ernesto Perez-Carrillo Jr. to travel and explore new types of tobacco that he is looking at using for new projects in 2022 and beyond.

    Lissette Perez-Carrillo said Maique’s role will continue to evolve and will likely expand in the future, including bringing him to the United States. “We want to maximize his talents,” she said, adding that he will be contributing his expertise to product development and marketing efforts. There are also discussions about having him lead consumer events.

    Maique served as co-president of Habanos from February 2011 to November 2012. He also served as the company’s commercial vice president and oversaw the operations of Coprova, the French distributor of Habanos products, for seven years. He has been credited with being one of the people responsible for the Cohiba Behike line.

  • Florida Top Court Limits Punitive Damages

    Florida Top Court Limits Punitive Damages

    Photo: Felix Mizioznikov

    A 1999 law that limits punitive damages applies to plaintiffs in Engle progeny cases who died after that year, even though the class action was filed years before, Florida’s Supreme Court ruled on Nov. 18, according to Legal Newsline.

    The verdict followed a case brought by Valton Sheffield, who was diagnosed with lung cancer and passed away in 2007. Sheffield’s widow recovered $5 million in punitive damages. Now, she will go back to the trial court for a new trial on punitive damages.

    Sheffield’s widow argued that in 1994, when her husband was diagnosed, he had fully mature causes of action that were pursued by the Engle class and then by her, so the 1999 amendments didn’t apply to her.

    “We disagree,” Florida Supreme Court Chief Justice Charles Canady wrote. “Because our caselaw establishes that wrongful death actions are distinct from personal injury actions and that there can be no wrongful death ‘cause of action’ absent a death, we conclude that the causes of action here arose when Mr. Sheffield passed away in 2007 and are thus plainly governed by the 1999 amendments.”

    Filed in the 1990s, the Engle class action netted a huge verdict, but it was struck down in 2006. However, the liability findings against the tobacco companies were preserved as individuals were allowed to pursue their own cases afterward, as long as they filed by 2007.

     

  • ReCreation Marketing Becomes Turning Point Brands Canada

    ReCreation Marketing Becomes Turning Point Brands Canada

    ReCreation Marketing will be known and operate as Turning Point Brands Canada effective Dec. 6, 2021.

    The name change follows a transaction that resulted in Turning Point Brands increasing its equity stake in ReCreation Marketing to a majority position. The transaction was completed on July 30, 2021.

    “ReCreation Marketing changing its name to Turning Point Brands Canada reflects our commitment to our shared values with TPB and to expanding the exposure and reach of iconic core brands, such as Zig-Zag, in Canada,” said Mikail Fancy, chief operating officer of Turning Point Brands Canada, in a statement. “TPB Canada is laser-focused on creating value directly with, and for, our partners by offering a portfolio of recognized, differentiated, consumer-relevant brands and products.”

     Turning Point Brands Canada continues to focus its resources on being a leader in the cannabis accessory category in Canada by fostering long-term, growth-oriented partnerships with manufacturers and retailers.

    “The rebrand of ReCreation Marketing to TPB Canada is a testament to our confidence in the ReCreation management team and is a natural extension of our infrastructure and portfolio development that puts consumers and their evolving needs at the center of our strategy,” added Larry Wexler, CEO of Turning Point Brands. “This change further demonstrates our commitment to positioning TPB as a leader in branded consumer products.”