Author: Staff Writer

  • Vapor Tax Resurfaces in Build Back Better Act

    Vapor Tax Resurfaces in Build Back Better Act

    Photo: DedMityay

    U.S. Lawmakers have reintroduced a tax on vapor products into the Biden administration’s Build Back Better Act, reports the Winston-Salem Journal. Earlier a series of controversial tobacco hikes had been removed from the legislation.

    The latest version of the bill calls of $50.33 per 1,810 milligrams of nicotine for “any nicotine product that has been extracted, concentrated or synthesized.” The previously proposed vapor tax was $100.66 per 1,810 mg.

    Vapor industry representatives were unimpressed. “American voters are already livid with paying high prices at the pump and the grocery store,” Amanda Wheeler, president of the American Vapor Manufacturers Association, was quoted as saying by the Winston-Salem Journal.

    “It’s a certainty they will be outraged with a gigantic tax on a product that millions use to quit cigarettes.”

  • ITC Veteran Rajiv Mohan Continues as Consultant

    ITC Veteran Rajiv Mohan Continues as Consultant

    D.V.R. Rajiv Mohan

    D.V.R. Rajiv Mohan of Indian Leaf Tobacco Exports ended his nearly 34 years of association with ITC, on mutual consent basis, on Nov. 1, 2021.

    In addition to working as an independent business consultant, Mohan intends to mentor agricultural startup firms, teach at business schools and farm, among other activities.

    During his career, Rajiv managed multiple assignments across the agricultural value chain, including operational, marketing and strategic functions. He was instrumental in taking ITC’s and India’s leaf tobacco exports to new heights during 2002-2012, establishing a footprint across all continents and customer segments.

    Subsequently, Mohan moved to agricultural commodities, overseeing the value chain for grains, cereals, plantation, horticulture and aquaculture. In his final assignment as vice president, Mohan oversaw value addition of a range of agricultural products.

    A vivid reader and active speaker, Mohan intends to travel, become an active blogger and continue his philanthropic activities.

    He can be reached at rajivmohan.dvr@gmail.com.

  • FDA Rescinds Marketing Denial for Humble Juice

    FDA Rescinds Marketing Denial for Humble Juice

    Photo: AliFuat

    The U.S. Food and Drug Administration has rescinded the marketing denial order (MDO) issued Sept. 15, 2021, for Humble Juice Co.’s flavored e-liquid products, the company announced on Nov. 5.

     Humble had filed a petition in October with the U.S. Court of Appeals for the Ninth Circuit, challenging the FDA’s decision and seeking to have the MDO vacated. Following the receipt of the rescission letter, Humble withdrew its petition as FDA’s rescission of Humble’s MDO places the brand’s flavored e-liquids back into the PMTA review process and provides Humble with a pathway to market its products while its PMTAs are pending.

    FDA’s rescission letter states that upon further review it identified information contained in Humble’s PMTA that requires additional evaluation such as “randomized controlled trials comparing tobacco-flavored ENDS to flavored ENDS as well as several cross-sectional surveys evaluating intentions to use or likelihood of use in current smokers, current ENDS users, former tobacco users, and never users.”

    The agency also stated that due to the unusual circumstances, it “has no intention of initiating an enforcement action” against any of Humble’s flavored e-liquid products with pending PMTAs. Humble will continue to market its products while its application remains in the review process.

    “FDA’s decision to rescind the MDO re-instills our faith in this challenging but science-based regulatory process,” said Humble CEO Daniel Clark. “We remain confident in and proud of our extensive PMTA submission. We are committed to working with the FDA to obtain marketing orders for the products submitted in our initial PMTAs in order to provide Humble’s adult consumers with flavor-filled and affordable e-juice long into the future.”

  • BAT Calls for Higher Cigarette Taxes in Japan

    BAT Calls for Higher Cigarette Taxes in Japan

    Photo: Colleen Williams

    British American Tobacco has surprised some observers by calling for higher cigarette taxes in Japan, reports the Japan Times.

    The company has submitted the request in writing to a group of lawmakers ahead of a tax system reform scheduled for 2022.

    The unusual move by a tobacco-maker comes as Japan is slated to raise its tobacco tax only for heat-not-burn (HnB) tobacco products in October 2022, which is expected to make some of such products more expensive than cigarettes.

    BAT is concerned that this will discourage smokers from switching to HnB products, which the company believes are less harmful to health than combustible cigarettes.

    The company is also requesting that the tax on heat-not-burn tobacco be increased at a slower pace than that for cigarettes in the medium to long run.

    In 2018, the government decided to increase the cigarette tax by ¥1 per cigarette each in 2018, 2020 and 2021 and the tax on heat-not-burn products in five stages from 2018 to 2022.

    According to the Tobacco Institute of Japan (TIOJ), sales of cigarettes in fiscal 2020, which ended last March, dropped 11.8 percent from the previous year to ¥2.47 trillion, due in part to a fall in opportunities to smoke outside home as people stayed at home amid the coronavirus pandemic.

    Tobacco harm reduction activists attribute the sharp drop in smoking to the rising popularity of HnB products.

    The TIOJ’s first survey of HnB products showed sales of ¥1.06 trillion, or more than 40 percent of the country’s cigarette sales.

  • Taipei Moves Closer to Banning E-Cigarettes

    Taipei Moves Closer to Banning E-Cigarettes

    Photo: Skye

    The Taipei city government has passed a ban on vapor products, reports The Taipei Times. If the Executive ratifies the measure, the city will impose a broad-ranging prohibition on the sale, advertisement, display and commercial transportation of novel tobacco products, including vaping devices and heated tobacco units.

    Additionally, vaping and using heated tobacco products is to be banned in a 50-meter zone around schools.

    Violators risk fines of between TWD2,000 ($71.76) and TWD10,000.

    The city ordinance, which initially targeted only e-cigarettes, was expanded to include heated tobacco products at the suggestion of Taipei City Councilor Wang Hong-wei of the Chinese Nationalist Party (KMT).

    Lauding the council’s decision, Health Promotion Division Director Lin Meng-hui dismissed as false tobacco industry claims promoting novel tobacco products as harm-reduction tools and smoking-cessation aids.

    Lin said government testing showed that more than 80 percent of e-cigarettes contain nicotine, and that the devices create dependence on the substance.

     The city has not drafted a timetable for implementing the ban. 

  • Ambassador James K. Glassman and Rosemary Leonard

    Ambassador James K. Glassman and Rosemary Leonard

    Photo: Malcolm Griffiths

    Ambassador James K. Glassman, former U.S. undersecretary of state for public diplomacy and public affairs, and Rosemary Leonard, a general practitioner in London, took the opportunity presented by the Global Tobacco & Nicotine Forum to introduce a report that aims to inject new imagination and ambition into the effort to reduce tobacco-related death and disease.

    According to Glassman, the fight against smoking has stalled. “There are more people smoking today than there were 30 years ago,” he noted. The current approach, he said, will only prolong the suffering. If nothing changes, 1 billion people will die of smoking-related diseases this century.

    Published by the International Commission to Reignite the Fight Against Smoking, the new report calls for society to recognize the power of technology to disrupt and tries to remedy the neglect shown to low-income and middle-income countries (LMICs).

    Smokers famously smoke for the nicotine but die from the tar—the byproducts of combustion. Innovation has resulted in technologies that can deliver nicotine in a device, the e-cigarette, that according to Public Health England and the Royal College of Physicians is 95 percent less harmful than smoking.

    Unfortunately, in all but a few countries, regulatory policy toward tobacco products is confused, contradictory and not based on current scientific knowledge, observed Glassman. 

    Glassman also expressed concern about the high levels of misinformation, not only among the general public but also among regulators and physicians.

    Leonard related the story from her practice about a patient diagnosed with chronic obstructive pulmonary disease. The patient said he had tried everything—the patches, the gum, etc.—to quit smoking but to no avail. When Leonard suggested he try vaping, the patient nearly fell from his chair. Leonard had to reiterate that anything was better than combustible tobacco.

    “Unfortunately, I am in the minority of doctors,” said Leonard. “So many just don’t know the science behind smoking … they know that tar is harmful, but they have this misperception that nicotine is harmful too.”

    Leonard said she was proud of the U.K.’s relative success reducing smoking. “We have moved from being a global leader in tobacco consumption to being a leader [in] tobacco control,” she said. And while there were many factors contributing to that success, including taxation, plain packaging and indoor smoking bans, Leonard said the U.K. had been especially fortunate with Public Health England’s hands-on approach in helping people quit and pragmatic approach toward smoking alternatives.

    “And now we must get the U.K. message to low[-income] and middle-income countries, where most of the world’s smokers reside,” she said. The idea behind the report is to open up a dialogue—to get the message across of how to best help people stop smoking.

    Among other recommendations, the report calls for risk-proportionate tobacco policies and better access to harm reduction in LMICs. It also encourages medical bodies to reestablish the leadership role of doctors in ending smoking and urges tobacco companies to have a clear plan to phase out high-risk combustible products.

  • More Calls for THR Ahead of COP9

    More Calls for THR Ahead of COP9

    Photo: andriano_cz

    Activists continue to urge participants in the ninth Conference of the Parties (COP9) to the World Health Organization’s Framework Convention on Tobacco Control to seriously consider tobacco harm reduction in their deliberations.

    COP9 will take place Nov. 8-13 online. During the convention, delegates will debate measures to reduce smoking-related death and disease. To the frustration of many tobacco harm reduction proponents, the WHO has been suspicious of vaping and other reduced-risk products, viewing them as an industry tool to keep consumers hooked on nicotine.

    “Tobacco harm reduction is a chance for smokers to switch from an extremely harmful to a significantly less harmful alternative,” the Independent European Vape Alliance (IEVA) wrote in a statement ahead of the gathering.

    We would like the WHO, together with other representatives from politics and science, to develop a targeted strategy for reducing the damage caused by smoking.

    “Unfortunately, the WHO has lost sight of this in recent years. But it is not too late to repent. It must focus on the future of millions of smokers worldwide—a future that is much brighter should they switch to vaping—rather than its own counterproductive ‘quit-or-die’ dogma.”

    “As a European association that is independent of the tobacco industry, we would like the WHO, together with other representatives from politics and science, to develop a targeted strategy for reducing the damage caused by smoking. Of course we as an industry are ready for this critical dialogue,” said Dustin Dahlmann, president of IEVA.

    “The World Health Organization’s failure to declare a global emergency in 2020 [in the wake of the coronavirus pandemic] will be repeated in 2021 when the WHO will likely abandon international tobacco harm reduction efforts and condemn millions of smokers to an early death,” said Nancy Loucas, a leading consumer advocate based in New Zealand.

    The WHO got it totally wrong on Covid-19, and it’s no surprise they’ve also got it very wrong with safer nicotine products such as vaping.

    “The WHO got it totally wrong on Covid-19, and it’s no surprise they’ve also got it very wrong with safer nicotine products such as vaping,” she added. “As an ex-smoker, vaping has improved my health and arguably saved my life, yet the WHO and its sponsor American Michael Bloomberg have pressured countries like mine to ban it.”

    On Oct. 18, 100 international health experts sent a public letter urging the COP9 parties to take a more positive stance on tobacco harm reduction. That same month, the Global State of Tobacco Harm Reduction (GSTHR) released a report urging the WHO to update its policies, which the GSTHR described as “frozen in time” as they dated from before the arrival on the market of many less-harmful nicotine delivery devices.

    A group of tobacco harm reduction experts will hold a round-the-clock broadcasting event Nov. 8-12, to challenge and scrutinize COP9, which will take placed behind closed doors.

  • STG Posts Results in Line With Expectations

    STG Posts Results in Line With Expectations

    Photo: STG

    Scandinavian Tobacco Group (STG) reported net sales of DKK2.18 billion ($338.78 million) in the third quarter of 2021 compared with DKK2.231 million in the third quarter of 2020. EBITDA before special items was DKK627 million, up from DKK614 million in the prior-year period. Organic EBITDA growth was positively impacted by a DKK31 million income from certain duty refunds in the U.S.

    The results were driven by continued strong demand for handmade cigars in the U.S, a favorable market and product mix, and synergies from the integration of Agio Cigars. Supply issues in Europe impacted net sales negatively in the third quarter. 

    “We delivered strong quarterly performance in line with expectations and maintain the positive momentum we have had throughout 2020 and 2021,” said STG CEO Niels Frederiksen in a statement.

    “The combination of the integration of Agio Cigars, the growth in handmade cigars and our underlying transformation have significantly improved our performance and raised our earnings and margins levels. I remain proud and impressed with the way our organization has continued to deliver a strong performance throughout a challenging period.”

  • 22nd Century Reports Third-Quarter Results

    22nd Century Reports Third-Quarter Results

    Photo: MIND AND I

    22nd Century Group reported net sales of $7.8 million in the third quarter of 2021, up 6.9 percent over those posted in the prior-year period. The increase was due to an increase in contract manufacturing sales.

    Gross profit for the third quarter of 2021 improved by 24 percent to $449,000 compared to the prior year period, reflecting the seventh consecutive quarter of year-over-year improvement in gross profit. The improvement in gross margin was primarily the result of increased filtered cigar sales mix due to new customer contracts and price increases on the company’s contract manufactured cigarettes.

    Operating loss for the third quarter of 2021 was $7.9 million, an increase of $3.4 million compared to the prior year period. This was primarily driven by an increase in selling, general and administrative expenses and was partially offset by higher gross profit and lower research and development spend in the third quarter of 2021.

    Net loss in the third quarter of 2021 was $9.4 million, an increase of $5.1 million compared to the prior year period primarily due to an increase in noncash charges offset by benefits to other income and expenses. This compares to the third quarter of 2020 net loss of $4.2 million.

    “I am proud of the tremendous progress we have made during 2021 as we complete the final step to MRTP [modified-risk tobacco product] authorization of our VLN reduced-nicotine tobacco cigarettes and begin to monetize our highly disruptive hemp/cannabis plant lines and IP [intellectual property],” said James A. Mish, CEO of 22nd Century Group, in a statement.

  • COP9 Coverage

    COP9 Coverage

    The Stubborn Squad

    In trying to engineer consumer choices, COP9 delegates persist in their Luddite approach.

    A Tale of Two COPs

    The striking differences between this month’s UN climate gathering and the FCTC COP9.

    A Better Treaty

    GTNF panelists offer suggestions for transforming the FCTC ahead of the ninthe Conference of the Parties.