Author: Staff Writer

  • Shaking off the Shackles

    Shaking off the Shackles

    Photo: prakasit khuansuwan/EyeEm

    The Philippines is rebuffing outside forces seeking to derail its tobacco harm reduction policies.

    By Stefanie Rossel

    The Philippines is about to become the first country in the Asia-Pacific region to introduce risk-proportionate vaping legislation. By doing so, it is defying the World Health Organization, which has been skeptical about tobacco harm reduction (THR). The Philippines is part of a small group of nations that have started scrutinizing the influence of big WHO donors on national tobacco control policies.    

    In December 2020, two Filipino congressmen called for a congressional investigation into the Philippines Food and Drug Administration’s (PFDA) acceptance of funding from the International Union Against Tuberculosis and Lung Disease, which is popularly known as The Union. The Union is a major beneficiary of Bloomberg Philanthropies, a foundation created by U.S. billionaire Michael Bloomberg, that is known for its anti-vaping agenda. By accepting funding from Bloomberg, the representatives argued, the PFDA violated a number of critical regulations in the public sector. These include the Anti-Graft and Corrupt Practices Act, the Code of Conduct and Ethical Standards for Public Officials and Employees, the Tobacco Regulation Act, the Lobbying Act and the Foreign Agents Registration Act. The PFDA’s director general had previously admitted during a public hearing that the agency had received more than $150,000 from The Union, essentially to hire employees to outline the Philippines’s tobacco control policy.

    Since 2006, Bloomberg Philanthropies has invested $1.1 billion to advocate for tobacco control policies worldwide. These policies are largely based on MPOWER, a set of demand-reduction strategies derived from the WHO Framework Convention on Tobacco Control (FCTC). A substantial portion of Bloomberg Philanthropies’ work has advanced tobacco control in many countries. However, support for adult smokers to quit—a component of MPOWER—has been completely ignored by the organization and its partners, according to Derek Yach, founder and president of the Foundation for a Smoke-Free World (FSFW). “These organizations see THR as a ploy of the tobacco transnationals,” he says. “With this perception, they ignore the vast benefits of THR and its potential to end smoking in this generation.”

    Bloomberg Philanthropies and its partners are not investing to develop research and capacity in low-income and middle-income countries (LMICs) on THR and the safety of associated products, notes Yach. “By continuing to ignore the growing evidence, including from the Royal College of Physicians, showing e-cigarettes and other reduced-risk products are much less harmful than combustibles, Bloomberg and others are impeding important progress in the fight to end smoking,” he says.

    Far-Reaching Influence

    Around 80 percent of the more than 5 trillion cigarettes smoked globally each year are consumed in LMICs. By its own reckoning, Bloomberg Philanthropies is present in 110 LMICs through its Bloomberg Initiative to Reduce Tobacco Use. These include India and China, which together account for nearly 40 percent of the world’s smokers. The initiative, Bloomberg Philanthropies claims on its website, “is helping cities and countries implement measures that are proven to reduce [tobacco] use and protect people from harm.”

    Michelle Minton

    The initiative’s influence extends through all levels of society, media and government. According to an analysis by Michelle Minton, senior fellow at the Competitive Enterprise Institute (CEI), it seems to be aimed at imposing its will on the developing world. Minton’s findings are based on a leaked document obtained by CEI, which detailed the 2017 LMIC strategy of the Campaign for Tobacco-Free Kids (CTFK), Bloomberg Philanthropies’ largest beneficiary. The CTFK is part of a complex network of Bloomberg Philanthropies-funded organizations, all of which pursue a zero-tolerance approach to all tobacco use.

    For these organizations, the term “tobacco” includes reduced-risk products (RRPs)—essentially, anything containing nicotine that is not a pharmaceutical nicotine replacement-therapy product. The CTFK has attempted to influence political processes and key players in various countries with the help of partnerships and often financial collaborations with activists, think tanks, professional associations, media, universities and governments. According to Minton, the CTFK and its grantees pay to manipulate news coverage. She calls the CTFK’s strategy “a highly synchronized chorus of interdependent interest, coordinated from afar.”

    Lacking the funds to conduct their own THR research, most LMICs follow the WHO’s guidelines unquestioningly. In recent years, their delegates have continued to confirm the WHO’s anti-THR stance during the FCTC Conference of the Parties (COP) sessions. The next summit, COP9, which was postponed due to Covid-19, will now take place in November 2021 and presents another opportunity for delegates to make a change.

    The influence of Bloomberg and his fellow WHO sponsor, Bill Gates, has also been brought to light by a number of recent articles. A study by Mitsuru Mukaigawara et al., published by Wellcome Open Research, examines the extensive use of media and academic influence by Bloomberg and the Gates Foundation to drive the global tobacco control agenda. “Highlighted by their influence over the World Bank and WHO, the authors show that the two organizations have been able to create a multilayered approach that touches many of the key stakeholders and undermines national sovereignty in tobacco control,” Yach explains. “Their broad and tight grip on various tobacco control activities will be tough to overcome. What may well happen, though, is that the weight of scientific evidence favoring THR will in time break through into the corridors of future WHO COP sessions.”

    Due to the travel restrictions, the ninth Conference of the Parties to the World Health Organization’s Framework Convention on Tobacco Control will be a virtual event. Discussions about tobacco harm reduction have essentially been tabled until COP10 in 2023. (Photo: olrat)

    THR Discussions Postponed

    Yach is less optimistic that such evidence will change minds among participants in the upcoming COP. “Unfortunately, due to the travel restrictions, FCTC-COP9 will be a virtual event with limited technical discussions, essentially tabling THR discussions until COP10 in 2023,” he says. “Even before this announcement, the WHO’s lack of transparency in its reports on novel products reveals a prohibitionist stance on THR.” 

    Over the past decade, Yach observes, media access to the FCTC has been constrained, and documents are published by the secretariat without formal member state input. “In fact, for the upcoming COP9 meeting, documents containing serious implications for THR are presented to be ‘noted’ without being subject to the usual United Nations practice of being thoroughly discussed and revised,” he says. “Many LMICs may well be persuaded by Bloomberg grantees to go ahead with bans and prohibitions of THR products supported or encouraged by WHO documents. These decisions will undermine the long-term health of their smokers.”

    Derek Yach

    In the run-up to the conference, the FSFW has started a campaign to inform COP9 delegates on the potential of THR. “Our goal is simple: Ensure that all involved directly or in advisory roles to member states engaged in COP9 are equipped with the best scientific data and information,” says Yach.

    The FSFW’s new Commission Report: Reignite the Fight Against Smoking, created by an international team of experts, highlights the opportunities to reduce the death and disease caused by smoking through use of THR and, in time, more effective cessation, Yach says. “The report provides member states with up-to-date data and insights about the value of innovation in driving changes in some companies. It spotlights which countries are making the most progress and which are badly lagging.” The report also highlights the need for doctors to take a more supportive role in advancing use of cessation and THR in LMICs, and the need for industry to be more aggressive in addressing youth access and marketing, according to Yach.

    The Commission Report, available at www.fightagainstsmoking.org, is complemented by the Patent Landscape Report, which is available on the FSFW website and presents an overview of current patents for THR technologies. “The FCTC failed to recognize importance of intellectual property and technological innovation,” says Yach. “Both are now driving change in the industry and further exacerbating the advantages developed countries have over LMICS as patenting activities in developing and least-developed countries are not comparable to those in the developed world.”

    Progressive Stance

    The Philippines is not the first country to reject the influence of Bloomberg Philanthropies on its tobacco control policies. In 2017, the government of India prevented two not-for-profit organizations funded by Bloomberg Philanthropies from carrying out tobacco control work in New Delhi after they failed to disclose their financial backers. In March 2021, a Mexican activist revealed that a proposal to prohibit the import, distribution and sale of vaping products had been formulated by CTFK’s legal advisor for Latin America.

    THR proponents hope that the Philippines will become a model for other Asia-Pacific countries where smoking prevalence is high and RRPs are currently either banned or restricted. After years of opposition to RRPs, the Philippine House of Representatives in early 2021 proposed House Bill 9007, which will regulate electronic nicotine-delivery systems (ENDS). If approved, the Philippines Department of Trade and Industry, in consultation with the PFDA, will be assigned oversight of ENDS regulation.

    Among other things, the bill stipulates that only retailers will be allowed to sell electronic nonnicotine delivery products and heated-tobacco products (HTPs). Retailers will be required to check buyers for a valid government-issued ID. Manufacturers, importers and distributors will need to comply with certain packaging and health requirements. Use of RRPs will be allowed only in designated areas, and the sale or distribution of these products will be prohibited within 100 meters of schools, playgrounds and other facilities frequented by minors. (Currently, the minimum age for purchase of ENDS and HTPs in the Philippines is 21.) Bill 9007 passed the House in May with a comfortable majority of votes; the Senate was expected to vote on it this fall.

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
  • A Paradigm Shift

    A Paradigm Shift

    Photo: BAT

    Contributed

    For years, smokers weren’t interested in supposedly safer cigarettes. There were some attempts by R.J. Reynolds in the 1990s with a “heated not burned” cigarette in the U.S. (under the brand name Eclipse), Germany (HI.Q), Sweden (Inside) and Japan (Airs). But the time seemingly wasn’t ripe for novel products.

    Instead, the tobacco industry entered an era of consolidation, the majors embarking on a large acquisition spree to expand their sales and distribution reach and to build on the popularity of global brands. The alcohol companies followed a similar strategy. The one exception was Swedish Match, which sold off of its cigarette interests to prioritize less harmful snus. That was before the EU decided to impose a ban on the product.

    The emergence of vaping technology, alongside the continuing focus on the health impact of smoking and an increase in regulatory restrictions saw the arrival of startup companies like Blu, Ploom (now Juul), NJOY, E-Lites and Ruyan. These businesses were at the forefront of starting what Swedish Match originally envisaged—a widespread transition for smokers from tobacco to alternative nicotine-delivery products.

    The tobacco majors stood briefly on the sidelines but quickly began acquiring many of these businesses and renewing their investments in the previously trialed heated-tobacco technologies. Philip Morris International led the way, soon publicly proclaiming its intentions for a “smoke-free future” and committing to transition smokers to less harmful products. Indeed, PMI’s latest acquisitions in the pharmaceutical sector, including those of OtiTopic, Vectura and Fertin Pharma, are intended to transition their business even beyond the nicotine segment.

    But prevailing public perceptions of the tobacco industry are slow to change, and with increasing attention on environmental, social and governance (ESG) issues, many investors have taken a restrictive approach toward tobacco stocks. Whether or not compounded by the disruptive threat of new challenger technologies, tobacco stocks have shed circa $300 billion over the past five years. This is despite the industry’s history of paying generous dividends, which in theory should attract investors. Similarities with “stranded assets” in the oil, gas and coal-mining industries immediately come to mind.

    There is already a noticeable difference in valuations between faster and slower transitioning tobacco companies, skewered in favor of the more active ones. The meteoric rise of Juul (albeit one that has now somewhat deflated) and the explosive valuations afforded to the likes of Smoore and RELX are also indicative of where investors see the future value in nicotine businesses. 

    Increasing public health concerns and huge consumer demand for harm reduction products, set against a complex regulatory landscape, fuel the reduced-risk product (RRP) categories.

    PMI, Altria and BAT are prominent in outlining their significant investment in and commitment to a portfolio of RRPs and their plans to transition smokers away from combustible products. While Japan Tobacco may have appeared to prioritize combustibles, recent developments suggest an intention to increase its presence in the RRP category too. Imperial Brands, while still undergoing a change in the senior management team, is following a similar strategy.

    Tobacco companies are increasingly becoming lifestyle companies with broad product offerings but streamlined brand portfolios.

    Although not widely commented on, this development and the plans that the tobacco majors seemingly have for the RRP category will have significant consequences for a number of industry participants, not least tobacco leaf growers. Prominent tobacco-producing nations, such as Malawi and Zimbabwe, will therefore face significant challenges and will likely need to restructure their entire economies.

    As a result of these developments, tobacco companies are increasingly becoming lifestyle companies with broad product offerings but streamlined brand portfolios. PMI is the most ambitious, trying to converge lifestyle and pharmaceutical categories focusing on inhalation technologies, benefiting from PMI’s expertise in this area. However, the acquisition of U.K.-based Vectura met with protests. On the other hand, PMI’s acquisition of OtiTopic, a U.S. respiratory drug delivery development company did not trigger such a strong public outcry. While Japan Tobacco has long had a pharmaceutical division, no areas of overlap or corresponding synergies with the tobacco business have been made apparent.

    The entrepreneurial small-size and mid-size enterprises, who kickstarted the vaping industry from the grassroots, initiated the transition we’ve seen in the last 10 years. At the outset, public health and tobacco control activists in many countries considered grassroots vaping companies to be a welcome alternative to the large tobacco multinationals. The majority of those early vaping companies were preoccupied with product launch, sales and distribution and overlooked the importance of the public policy and regulatory arena. Many, such as Blu, Ploom, E-Lites, Logic and Juul, then accepted tobacco industry investment, but this led to a negative view toward the category for many in public health and tobacco control.

    Seemingly the stigma associated with the tobacco industry—the “Big Tobacco” factor—quickly attached itself to the vaping industry.

    It seems only a matter of time before history repeats itself in the cannabis industry. Altria, BAT, PMI and Imperial Brands have all made investments in cannabis. Whether a preemptive step or not, it’s certainly a cost-effective manner to understand the sector and thereby be positioned to participate as and when restrictions come to be lifted.

    Only a few years ago, the tobacco industry was considered to be a dinosaur set for extinction. Some industry participants, whether encouraged by early successes of vaping businesses or otherwise, took on the challenge and are reinventing themselves as lifestyle companies, and PMI is daringly entering the pharmaceutical sector. Those that are prepared to transition away from combustible tobacco products have been given a new and exciting line of life.

    The tobacco industry is only at the beginning of its paradigm shift. Special efforts to engage with regulators—which are not only the industry’s biggest partner but will ultimately decide on the success of the “new nicotine” sector—will be required. It seems likely that those industry players who make those efforts and who experiment with new technologies, new products and new business models will be those best placed to thrive in the future.

    This article was contributed by GMTL, a leading risk advisory, due diligence and corporate intelligence firm headquartered in London.

  • A Versatile Tool

    A Versatile Tool

    Photo: IOTO

    Reconstituted tobacco can help cigarette manufacturers reduce waste and control cost. It is also a useful tool for product design. Most recently, recon has played an instrumental role in the development of tobacco-heating products. Perhaps less well known are the further environmental gains that have been brought about by refining reconstituted tobacco processes. Tobacco Reporter spoke with representatives of IOTO and SWM to discuss the latest developments in the field.

    Bruno de Veyrac

    A Diminished Carbon Footprint: SWM Reduces Its Dependence on Fossil Fuels

    In August, the Physical Science working group of the International Panel on Climate Change (IPCC) published its contribution to the Sixth Assessment Report of the IPCC, and it made scary reading. At the same time, however, it helped reinvigorate the environmental debate and encouraged us all to run informal audits on our own carbon footprints and those of the organizations, companies and industries with which we are associated.

    An environmental audit of the tobacco industry would prove to be incredibly complex, but one thing is obvious: the industry’s positive developments are often brought about by a desire to save costs. And one of the prime examples of this has been seen in the development of reconstituted tobacco, which is formed largely from tobacco that would otherwise go to waste.

    This is well known. But what is probably less well known is that, during the 40 or so years the industry has been using reconstituted tobacco, further environmental gains have been brought about by refining reconstitution processes. In answer to a question posed during an email exchange in August, SWM said that it had decreased its CO2 emissions by 140,000 tons during the past six years following the installation during 2014 of a biomass boiler at its LTR production site in France. That is apparently the same environmental advantage as would be achieved by cancelling 140,000 round-trip flights from Paris to New York.

    According to plant manager Antoine Uzu, the biomass boiler, which has reduced the plant’s dependence on fossil fuels, operates on locally sourced wood harvested from sustainable, well-managed forests and supplies the steam needed to operate the plant’s machines 24 hours a day. Additionally, the hot water generated during the production process is used for heating some of the company’s buildings, and SWM’s LTR production site strategy is to continue to reduce its fossil-fuel consumption until, within two years, it will have all of its buildings heated using renewable energy—what would otherwise be thermal losses from its renewable energy-driven process. And, as part of its global Operational Excellence program, it is studying whether it would be possible to use by-products of its own manufacturing as fuel for the biomass boiler, an exciting prospect that would reduce its waste production while increasing the share of renewables in its energy consumption.

    In summary, what you have here is a process largely driven by renewables in which tobacco that would otherwise have to be disposed of is being reconstituted and returned to the tobacco manufacturing process, and the prospect that the waste from the reconstitution process will be used to help drive that process. Little wonder then that Bruno de Veyrac, director of NGP [new-generation products] & Recon at SWM, described the reconstitution process as working on the principles of the circular economy by adding value to tobacco that would otherwise be difficult to use by providing for a better control and specification of traditional tobacco products, and by enhancing the tobacco so that it can be used as the raw material for reduced-risk, heated-tobacco products (HTPs).

    SWM has decreased its CO2 emissions by 140,000 tons following the 2014 installation of a biomass boiler at its LTR production site in France. (Photo: SWM)

    Another way in which reconstituted tobacco might be thought of as contributing to the positive environmental credentials of the industry is that it can be used in traditional-cigarette manufacturing facilities without the need for modifications, and it allows companies to start manufacturing HTPs using as much as possible of their existing assets. In part, this is because it is delivered in the same sizes of lamina and strips as is raw tobacco and in the same C48 cases. But it is also because of the advantages that have accrued from SWM having upgraded the quality standards of its LTR factory and having invested significantly in its analytical laboratory.

    Meanwhile, special reconstituted tobacco products have been developed to help smaller manufacturers move more easily into the production of HTPs by making it unnecessary for them to undergo major research and product development programs. Bruno Stefani, product manager of heated-tobacco products at SWM, said his company had developed a portfolio of ready-to-use augmented tobaccos, each of which had been developed using the company’s expertise in aerosol generation—expertise that had been built up during a seven-year research and development program and that was based on the selection of the right tobacco grades and their processing into high-quality materials.

    SWM’s reconstituted-tobacco filler substitute Nexfill allows manufacturers to replace part of their filler tobacco and offers security of supply at a time when deliveries of raw material might be interrupted.

    The major use of reconstituted tobacco remains, of course, as a component of traditional cigarette blends where it is used to help with blend design and in contributing positively to smoke delivery controls. De Veyrac pointed out that reconstituted tobacco was a convenient tool to help manufacturers better comply with existing regulations and to help the industry prepare for more demanding regulations in the future.

    And as de Veyrac pointed out, such future regulation could include a requirement by the U.S. Food and Drug Administration that nicotine deliveries are tightly controlled. Given such a situation, he said, reconstituted tobacco could be used to help reduce nicotine deliveries. The key advantage of SWM’s reconstitution process, which is based on the paper-making process, was that it worked on the basis of separating the fibers and the extract, and then adding back the extract, at which point various compounds, such as nicotine, could be removed or their level controlled. Otherwise, other reconstituted botanicals with no nicotine could be added to blends, alone or in combination with reconstituted tobacco.

    Specifically, SWM offers two reconstituted-tobacco filler substitutes that were launched two years ago under the name Nexfill, one lemon-style and one orange-style flue-cured Virginia product. De Veyrac said these products had been popular from the start because they allowed manufacturers to replace part of their filler tobacco but that they had come into their own recently because they offered security of supply at a time when deliveries of raw material might be interrupted, such as during the current pandemic. Two other Nexfill products are on their way. Nexfill Oriental, which has been developed recently, and Nexfill Burley, which is still under development.

    Not surprisingly, given the above, de Veyrac seems confident about the future. The flexibility of the reconstitution process meant that it was capable of helping the tobacco industry meet the challenges it was facing with regard to the need for waste management and recyclability, he said. SWM today offered a wide range of products for the manufacture of cigarettes, cigars, cigarillos and NGPs. It had also developed its product and service portfolio, which included prototyping and scientific support in developing HTPs. From the new NexFill family of grades to special grades for HTPs, and reconstituted botanicals, innovation is to the fore more than it ever has been. —G.G.

    Hemp cut rag (Photo: IOTO)

    Herbal materials present new opportunities for reconstituted products.

    It would be wrong to give the impression that homogenized herbal materials make up anything but a small fraction of the market for the various reconstituted plant-based products that, mostly and traditionally, have been used in tobacco production. Nevertheless, it is difficult not to become caught up in the buzz that surrounds these materials.

    In the past, reconstituted tobacco has been the utilitarian product par excellence. It has played all manner of important—sometimes vital—roles in the development of tobacco products, most recently in respect of heat-not-burn (HnB) products, but it has done so largely out of sight; it has tended, for various reasons, to hide its light under a bushel.

    Reconstituted herbal materials, however, partly because of their range and, sometimes, their rather exotic constituents, but mostly perhaps because they offer a wealth of new opportunities, seem to be destined for the spotlight. During an email exchange earlier this year, Helder Tullio, director of operations at IOTO International, the U.S.-based and Brazil-based manufacturer of homogenized wrapper, cut filler and binder for the smoking industry, told Tobacco Reporter that his company had already manufactured herbal sheets from many different materials, including yerba mate, chamomile, sage, cocoa, lemongrass, coffee, hibiscus, clove, stevia and black, green and white tea. “We can produce herbal blends according to our customers’ demands,” said Tullio. “IOTO is committed to partner with our customers for the development of reconstituted herbal products according to their needs. Some herbal materials we have manufactured were suggested by our customers.”

    This, of course, raises a question about what determines whether a particular herb can be made into a homogenized product. Naturally, it has to be readily available in big enough quantities, but are there other factors, such as fiber structure? “The cell wall composition and fiber structure are the main factors that determine the conversion of the herbal materials into reconstituted sheets,” said Tullio. “However, due to our process flexibility and expertise to adapt our formulas, we have succeeded even when using soft materials, such as hibiscus flowers.”

    One of the things that I found most exciting about the availability of such a range of reconstituted herbal materials and the potential for expanding that range was the fact that, in a press note earlier this year, IOTO talked of being able to accommodate smaller initial production runs. This clearly has the potential to attract entrepreneurs who could take such materials into new markets and new areas. In fact, Tullio said that IOTO could work with production runs of as low as 50 kg, which would help small and new companies get a foot on the ladder leading to increasing volumes.

    The press note issued by IOTO earlier this year announced that the company had expanded its herbal offerings to include U.S.-produced premium reconstituted hemp sheet. Demand for reconstituted hemp wrappers has been increasing significantly in the U.S. and it is fortunate that, due to its high fiber content, hemp is easily converted into homogenized sheet. Additionally, there is a plentiful supply of hemp in the market, and IOTO’s process can accommodate different parts of the hemp plant, such as its flowers, leaves and stems.

    “All the hemp materials used by IOTO are tested for THC content, heavy metals, residual pesticides and presence of microbes to guarantee the best quality products to our customers,” said Tullio. “A full cannabinoids spectrum analysis is also performed to guarantee the highest quality of hemp.”

    Testing the hemp for THC content is important to ensure that the level is below the legal definition of marijuana because IOTO is based in North Carolina where marijuana is not legal. However, given the similarities between hemp and marijuana, the company says it will be able to process marijuana when and if it is made legal there.

    IOTO can provide reconstituted hemp on bobbins for use in the production of wrappers and cones, and the company can provide it in square sheets, threshed sheets and cut rag for use as filler materials. In addition, since IOTO’s process is patented, it is able to sell its equipment and license customers to produce their own homogenized sheets.

    So what is the outlook for reconstituted hemp? Well, according to Tullio, demand will certainly grow in every country in which hemp and or cannabis is legalized. Before hemp was an alternative, tobacco and paper were the rolling products of choice for most RYO smokers, he said. But, once legalized, hemp naturally became an alternative because hemp wraps provided a flavorful, slower burn for hemp and cannabis users. Hemp wraps offered the advantage of retaining the terpenes and CBD naturally present in the plant, and they were being offered in the market in a variety of flavors, such as grape, pineapple, lemon and lime.

    The reconstituted herbal sheet market is seen by IOTO as a growing one, not only in respect of hemp cigarettes but also for other nontobacco products, such as cocoa and tea. But Tullio said it was already a very competitive market, and to thrive in it, companies were adding a variety of flavors to their herbal products as a means of differentiating them.

    Meanwhile, originally used as a tool to reduce waste and costs during cigarette production, reconstituted tobacco is now a key component of blends, in no small part because it can help manufacturers regulate nicotine levels and the chemical composition of smoke in line with the restrictions placed on tobacco product delivery levels. It can be used also as cigar binders and wrappers.

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
  • Staying Ahead

    Staying Ahead

    Photo: Belt Technologies

    In today’s hypercompetitive environment, tobacco companies expect suppliers to enable them to develop attractive products while controlling cost and meeting government regulations. Tobacco Reporter spoke with three suppliers of tobacco-related machinery and asked them what they are doing to help their customers stay ahead of the competition.

    Cleaning up nicely: Belt Technologies on the Advantages of Stainless Steel Belts.

    The Covid-19 pandemic has left us all more aware than we once were about the necessity of paying attention to, among other things, the cleanliness of surfaces; so, as part of its machinery feature, Tobacco Reporter took the opportunity of engaging in an email exchange with Brian Harbison, managing director of Belt Technologies Europe, about his company’s metal belts and tapes, which have been promoted in part on the basis that metal provides a more hygienic surface than that of other materials. 

    Tobacco Reporter: Do you think that, in the wake of Covid-19, demand from the tobacco and nicotine industry for Belt Technologies’ metal belts and tapes will increase?

    Brian Harbison: We have been helping the tobacco industry in the manufacturing process for more than 20 years. Our PureSteel metal belts do not require lubrication and do not outgas, eliminating the risk of contamination. Also, unlike other belt materials, stainless steel does not fray or generate particulates that could get into the tobacco and contaminate it. There has always been a push to maintain cleanliness in tobacco production and packaging to preserve purity, but I think now more than ever it’s at the top of consumers’ minds due to the pandemic.

    I take it that increased demand for such conveyor systems will arise in respect of some of the other industries the company serves, such as the food industry. 

    Absolutely. The food industry has had to pivot during the pandemic to ensure its processes are as safe and sanitary as possible. Our PureSteel conveyor belts are excellent for cooking, freezing and handling edible products, offering a variety of benefits over belts made from materials, such as plastic or rubber. Metal belts do not require lubrication, so there is no risk of chemicals tainting the food. Additionally, stainless steel is resistant to bacteria, making it easy to clean and in compliance with even the strictest USDA [U.S. Department of Agriculture] requirements.

    Has it generally been the case that, when looking at factory conveyor systems, the tobacco and nicotine industry has prioritized cleanliness in the past? 

    Yes, in the time we have been working with the tobacco industry, hygiene has been a top priority. Since people place tobacco products in their mouths, eliminating the presence of potentially harmful bacteria at all points of contact, from handling raw tobacco to the rolling and packaging process, is paramount.

    From the point of view of cleanliness, in what parts of the processes involved in the production of tobacco and nicotine products is it most important to employ metal conveyor systems? 

    Our belts can really be used to make any part of the process more sanitary. In the primary stage of tobacco processing, which is the bulk handling of raw, unprocessed tobacco, our metal belts ensure the product does not become contaminated with bacteria or other foreign matter. And when it comes to the secondary processing of tobacco, our stainless steel suction bands, used in the production of cigars and cigarettes, are available in a range of sizes and surfaces. The benefit of using a metal belt in this stage is the ability to keep the material that will touch the mouth free of contaminants and bacteria while still processing at top speed.

    Cleanliness is not the only characteristic on which Belt Technologies promotes its metal belts. Another, I notice, is durability. Again, this durability, along with metal’s usually good recycling credentials, seems to be currently more important than ever, given the environmental problems we are suffering. 

    Stainless steel has a low thermal coefficient of expansion, enabling greater resistance to extreme temperatures, and it’s also corrosion resistant and vacuum compatible. Inferior materials, such as plastic, rubber or cloth will warp, burn or fall apart when subjected to the same high temperatures metal belts can withstand, and similarly, will shrink or become brittle in extreme cold while metal belts thrive. Stainless steel has a tensile strength ranging from 180 KPSI to 300 KPSI (thousand pound force per square inch), depending on the alloy and temper of the metal. That means relatively thin and lightweight belts can be designed to handle the stresses of almost any application. The high strength and low weight enable the conveyor’s input horsepower to be directed toward moving the product and not the belt, which boosts efficiency and reduces operating expenses. Simply put, metal belts are stronger and more efficient than the alternatives.

    The tobacco industry seems to be evolving. Does Belt Technologies see fewer or more opportunities ahead as the production of tobacco products gives way gradually to lower-risk products, particularly oral products? 

    We have such a wide variety of products that can be used in various ways; we foresee being able to work in the tobacco industry no matter what pivots they make. Our custom solutions can be fabricated to the customer’s exact specifications, so even if one of our existing belts didn’t fit their needs, we could create one that would.

    Would you like to tell me anything else? 

    Metal belts, timing belts and drive tapes are superior, high-quality options for automated production and robotic facilities. Belt Technologies has been producing custom metal belt conveyor solutions for new and existing conveyor systems for more than five decades. Sophisticated engineering, advanced manufacturing processes and an unlimited variety of configurations and coatings are available to custom design belts to suit any application. –G.G.

    Montrade—Reimagining Product Assembly

    Photo: Montrade

    Some of the most interesting and innovative developments being applied to the machinery that will manufacture the tobacco products of the future, along with their derivatives, are unknown to those of us who are not intimately involved in those developments. This is understandable. The competitive nature of the tobacco and nicotine product business means that, often, manufacturers work confidentially with machinery suppliers to come up with new or redesigned equipment that will allow them to manufacture products capable of standing out in the marketplace.

    This has not always been the case. Before filters were added to cigarettes, the differentiation of products was mostly down to their taste, and so the secrecy surrounding manufacture was almost entirely down to tobacco blends. But once filters were added, for a number of reasons, the focus moved from the blend to other things.

    I got to thinking about these things during an email exchange with Emanuele Massari, senior sales manager at machinery supplier Montrade, who described how his company had previously reimagined the process of making nonwrapped acetate (NWA) filters, allowing a product design innovation. The invention of the new process, which is covered by a number of Montrade patents, led to the design and development of an innovative machine, the MONO NWA, to manufacture the filter in line with the new process. Montrade’s MONO NWA, Massari said, was still a reference point for the filter market and continued to be the only filter maker capable of producing, at high speed, tubes (hollow acetate tubes) with extra-thin walls of 0.5 mm.

    Currently, Montrade, which supplies machines for manufacturing heat-not-burn sticks, from the base rod makers, including the tobacco portion, to the combiners that assemble the final products, says it is partnering with several clients in investigating other new-generation products. “We are working on some very interesting and innovative projects, which are still at a confidential stage,” said Massari.

    Meanwhile, over the years and up to the present day, Montrade has directed some of its innovative thinking at the environment. Fifteen years ago, before such thinking went mainstream, it built the first version of its paper crimper, a move that was to pay off commercially as well as environmentally. “We have been recognized by many customers, both multinationals and independents, as the preferred OEM for paper filter equipment, establishing ourselves as the clear leader in this sector,” said Massari. —G.G.

    Independent Solutions: Achieving Engineering Goals in the Most Cost-Effective Manner

    Photo: TMQS

    If a company operates in a fast-moving consumer goods market sector, change is almost certainly part of its DNA because change is an important strand of the competitive thread that binds it to success. And if a company operates in the tobacco sector, change tends to loom even larger because it is driven not only by competitive issues but also by regulatory ones.

    The problem is that change can be expensive and there is little point in changing to stay ahead of the competition and regulations if it means you lose money. So how do you engineer the changes you need without breaking the bank?

    Tobacco Reporter in August put this question to Norbert Schulz-Nemak, sales manager at TMQS, a German machinery company that takes a flexible approach in helping tobacco manufacturers attain their various goals. Tobacco manufacturers needed to undertake frequent changes in their product portfolios, he wrote in an email exchange, and, in some cases, their existing machinery might not be such that it could be efficiently reconfigured to accommodate these changes, which might require anything from a minor to a major conversion.

    “If a manufacturer is faced with a new requirement and asks an OEM [original equipment manufacturer] about the solution, this usually leads to the buying of new machinery that is equipped or specifically designed for such a task,” said Schulz-Nemak. “This helps, but it is certainly an extremely costly exercise.”

    Given this, TMQS says it is working with customers to achieve their new goals in the most cost-effective manner possible. “Our solutions are stand-alone and independent of machinery PLCs [programmable logic computers, or industrial computers],” he said. “And they are flexible so that they can be used on each and every type of cigarette and filter maker.”

    So what types of changes can be achieved at reasonable cost? Well, one example was where a manufacturer needed to produce cigarettes with high levels of ventilation, said Schulz-Nemak, in which case TMQS could provide a modern, online, high-powered laser capable of achieving the best results, even where there were critical specifications.

    Another example was where market-driven or consumer-driven changes required cigarettes to be produced with biodegradable filters. Instead of buying new machinery, a TMQS crimping unit could be placed in front of an existing filter maker. And if special filters, such as hollow filters, were required, existing machinery could be converted.

    It was unnecessary, also, to buy new machinery when new plug-wraps with, for instance, glossy or slippery paper, were introduced, because TMQS could optimize the rolling process of such papers to ensure the manufacture of the best quality products.

    And while detection equipment for NTRMs (nontobacco-related materials) was available from OEMs only in respect of new-generation machinery, TMQS offered NTRM detection for retrofitting to older cigarette makers.

    Meanwhile, more complex changes involving, for instance, new PLCs or weight-control systems, could be integrated into existing machinery, said Schulz-Nemak. Importantly, if a manufacturer wanted to branch out into new product areas, such as those involving tubes or heat-not-burn devices, TMQS could modify existing machinery, thereby bypassing the need to make major investments in new machinery. —G.G.

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
  • ‘Flavored Vapes Remain Popular Among Youth’

    ‘Flavored Vapes Remain Popular Among Youth’

    Photo: flydragon

    A study released today by the U.S. Food and Drug Administration and the U.S. Centers for Disease Control and Prevention (CDC) estimated that more than 2 million U.S. middle and high school students reported currently using e-cigarettes in 2021, with more than 8 in 10 of those youth using flavored e-cigarettes.

    The report, published in the Morbidity and Mortality Weekly Report, was based on data from the 2021 National Youth Tobacco Survey (NYTS), a cross-sectional, self-administered survey of U.S. middle (grades 6–8) and high (grades 9–12) school students. The study assessed current (used on one or more of the past 30 days) e-cigarette use; frequency of use; and use by device type, flavors and usual brand.

    Administered Jan. 18–May 21, 2021, this NYTS was the first to be fully conducted during the Covid-19 pandemic. Data were collected using an online survey to allow eligible students to participate in the classroom, at home or in some other place to account for various school settings during this time. Prior to the pandemic, the survey was conducted in-person inside the school classroom. Because of the changes in the way the survey was conducted this year, results of the 2021 NYTS cannot be compared to findings from previous surveys.

    “These data highlight the fact that flavored e-cigarettes are still extremely popular with kids. And we are equally disturbed by the quarter of high school students who use e-cigarettes and say they vape every single day,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products. “The FDA continues to take action against those who sell or target e-cigarettes and e-liquids to kids, as seen just this year by the denial of more than one million premarket applications for flavored electronic nicotine-delivery system products. It is critical that these products come off the market and out of the hands of our nation’s youth.”

  • BMJ Completes New Headquarters

    BMJ Completes New Headquarters

    Photo: BMJ

    BMJ has completed construction of its new headquarters.

    Located at the BMJ complex near Jakarta, the building has been positioned to optimize the footprint of the specialty paper and packaging materials supplier. Equipped with the latest security technologies, the facility features comfortable rooms to accommodate visitors.

    The building has been designed to minimize its environmental impact. Through the use of extensive greenery and a pool, BMJ has reduced its dependence on artificial climate control methods—a considerable advantage in a hot and humid country like Indonesia. A weaving structure surrounding the building’s facade and roof limits heat gain. Designed by computer and handcrafted by rattan master weavers, the structure offers shade during the day and architecturally pleasing shapes at night.

    In designing its new headquarters, BMJ has emphasized utility, effectiveness and efficiency. For example, roster walls promote airflow while exposed ceilings facilitate maintenance. Consistent with BMJ’s philosophy of collaboration, the new facility features open workspaces with minimal partitions.

    BMJ says its new headquarters, which were developed during the pandemic, reflect the company’s resilience and innovative spirit. “We believe our new headquarters symbolize every ‘eureka!’ moment we had in the past and will become inspirations for our ‘eureka!’ moments in the future,” the company wrote in a statement, referring to its “Eureka Everyday!” corporate slogan.

  • U.S. IQOS Imports Halted

    U.S. IQOS Imports Halted

    Photo: theaphotography

    The International Trade Commission (ITC) has upheld an initial determination from May 2021 that Philip Morris International’s IQOS device infringes on two patents owned by BAT subsidiary Reynolds American Inc. (RAI).

    The agency has instituted an import ban and a cease-and-desist order preventing IQOS consumables and devices from being sold in the U.S. in 60 days. PMI’s U.S. partner, Altria Group, plans to continue to sell IQOS through the 60-day period in its existing markets.

    BAT welcomed the ruling. “Infringement of our intellectual property undermines our ability to invest and innovate and thereby reduce the health impact of our business,” the company wrote in a statement. “We will therefore defend our IP robustly across the globe.”

    The patents relate to an electronically powered device with a heater to generate an aerosol and expire in October 2026 and November 2031. BAT has filed similar cases globally, including in Germany, the U.K., Japan and Italy.

    Morgan Stanley said the ruling would have limited financial impact on PMI and Altria, as IQOS in the U.S. is not a meaningful contributor to the companies’ earnings. The outcome of similar cases brought by BAT against PMI internationally, however, could have a greater impact. But so far, PMI has been successful defending cases in the U.K. and Greece.

    The investment bank also noted that the IQOS ban applies to imported product, suggesting it may be overcome by shifting production to the U.S.

    The ITC decision will now be reviewed by the U.S. Trade Representative. If the decision is not vetoed within 60 days (only a handful have ever been vetoed), it can be appealed to the U.S. Court of Appeals, but the import ban would still be in effect throughout an appeals process.

  • Juul2 Launched in the United Kingdom

    Juul2 Launched in the United Kingdom

    Photo: steheap

    Juul Labs has unveiled its Juul2 device in the U.K.

    The device features a more consistent vapor experience, a longer battery life and anti-counterfeit technology.

    Launching initially on the Juul.co.uk website on Sept. 30, the Juul2 system has been updated from previous versions with new technology and features based on feedback from smokers.

    Among other features, the Juul2 features a more consistent vapor experience, a longer battery life and a smart light system communicating e-liquid level and battery life.

    The Juul2 also comes with newly designed tobacco and menthol Juul2 pods (18 mg/mL nicotine strength) and technology to prevent unauthorized use. The device will not work when it detects counterfeit pods.

    “We are pleased to launch the next-generation Juul2 in the U.K.,” Juul Labs’ EMEA vice president, Dan Thomson, said in a statement. “A key part of our mission is to transition adult smokers away from cigarettes, the leading cause of preventable death in the world, killing some 90,000 Britons annually.

    “We believe the best method to switch adult smokers from combustible cigarettes to a potentially less harmful noncombustible alternative is to provide a product that closely resembles the consistency and experience of smoking. With Juul2, we believe we are taking another step in that direction as we aim to transition even more adult smokers.”

    A retail rollout is planned for early 2022, and all U.K. retailers stocking Juul products will continue to uphold the company’s Challenge 25 age verification policy, which includes continued mystery shopping audits.

  • Juul Settlement to Fund Anti-Vaping Research

    Juul Settlement to Fund Anti-Vaping Research

    Photo: steheap

    North Carolina will use the $40 million settlement with Juul Labs, announced in June by Attorney General Josh Stein, to help fund research to stop the use of electronic cigarettes among young people, reports The Fayetteville Observer.

    “For years, Juul targeted young people, including teens, with its highly addictive e-cigarette,” said Stein. “It lit the spark and fanned the flames of a vaping epidemic among our children—one that you can see in any high school in North Carolina. This win will go a long way in keeping Juul products out of kids’ hands, keeping its chemical vapor out of their lungs and keeping its nicotine from poisoning and addicting their brains.”

    Juul Labs will pay North Carolina $13 million in the first year, $8 million the second year, $7.5 million the third year, $7 million the fourth year and $2.25 million the fifth and sixth years. The payout is set to fund programs conducting research and prevention of electronic cigarettes, according to Travis Greer, regional tobacco control manager for the Cumberland County Health Department.

  • Morocco Sets Cigarette Emission Limits

    Morocco Sets Cigarette Emission Limits

    Photo: nikkytok

    Cigarettes sold in Morocco will be subject to new emission limits starting in January 2024, reports Morocco World News.

    From that date, the emissions of cigarettes imported or manufactured in Morocco and marketed across the country should be at levels not exceeding 10 mg of tar per cigarette, 1 mg of nicotine per cigarette and 10 mg of carbon monoxide per cigarette.

    Tobacco companies will be required to declare clear the deliveries on cigarette packages.

    The percentages of tar, nicotine and carbon monoxide are measured on the basis of NM ISO 4387 standards for tar, NM ISO 10315 for nicotine and NM ISO 8454 for carbon monoxide. The accuracy of the percentages of tar and nicotine is verified according to the standard NM ISO 8243.

    Compliance will be monitored by the Department of Customs and Indirect Taxes. The primary objective of the decree is to align national legislation with international standards.

    An estimated 18 percent of Moroccans aged 15 smoke, with nearly 41 percent of the country’s population exposed to secondhand smoke.