Author: Staff Writer

Malawi: Farmers Threaten to Quit

Photo: Taco Tuinstra
Some farmers in Malawi have threatened to stop growing tobacco due to lack of sustainable payment, according to Malawi24.
The farmers said that growing tobacco under the current contract system is leaving them more impoverished than they would be if they invested their own resources in the process.
“It’s better to withdraw and let those companies do the work; it’s not in order for a farmer to spend time growing tobacco and later earn less. This is disgusting,” said David Chirwa, a seasoned tobacco farmer.
“It’s not on. Imagine toiling for a year and earning MKW100,000 [$123], the rest being earned by a tobacco company. This is nuisance. We’re not their slaves,” said Tinkho Muyaba, interim chairperson for the Concerned Tobacco Growers Union.
Tobacco is a demanding crop to grow, requiring close monitoring throughout the whole process. “[Tobacco] is one of the most agonizing crops to grow,” said Jeremiah Chihana, another tobacco farmer. “We spend sleepless nights. It’s an insult, therefore, to be taken for granted by these tobacco companies.”
Tobacco farmers have said that unless the government intervenes to get rid of the contract system, they will likely venture to other crops, such as soya.
August 19, 2021
Biodegradable Filter Maker to Supply Poda

Photo: ASDF
Poda Lifestyle and Wellness has entered into a supply agreement with biodegradable filter manufacturer Greenbutts.
Greenbutts has developed a natural filter technology that was created to provide an alternative to the common nonbiodegradable cellulose acetate cigarette filter. Greenbutts created a natural, rapidly degrading cigarette filter using a proprietary blend of food-grade fiber materials including flax, cotton and manila hemp with no artificial compounds or chemical residues. The unique blend of materials is designed to allow for the same sensory experience and filter manufacturing run rates as acetate filters. Greenbutts filters will disperse in water within a few minutes and will degrade in compost within seven days as opposed to 10–15 years as is the case with traditional cellulose acetate filters.
“Poda is committed to ensuring that the company contributes to a brighter future for all of our stakeholders,” said Ryan Selby, Poda CEO, in a statement. “As CEO, I take this responsibility very seriously, and I am devoted to ensuring that Poda delivers industry-leading performance on our core principles of strong environmental management, responsible societal impacts and robust corporate governance. Pursuant to this commitment, I am very pleased to announce today that Poda has entered into a supply agreement with Greenbutts, one of the world’s leading manufacturers of biodegradable cigarette filters.”
“This supply agreement will provide the company with access to 100 percent biodegradable filters for use in our Beyond Burn Poda Pods. The inclusion of Greenbutts’ biodegradable filters into our already biodegradable and compostable Poda Pods allows Poda the ability to offer a completely biodegradable and truly compostable heat-not-burn product, something that has never been done in the heat-not-burn tobacco market. … We are thrilled to have secured this supply agreement.”
“We have spent the last 10 years relentlessly pursuing the perfect biodegradable cigarette filter,” said Tadas Lisauskus, co-founder and CEO of Greenbutts. “Now that our patented product is ready for commercialization, we are very pleased to have entered this supply agreement with Poda. Traditional cellulose acetate cigarette filters are among the single most commonly littered items globally, and we are committed to the goal of eliminating environmental pollution caused by improperly discarded cigarette butts. Greenbutts’ biodegradable filters are made from natural sources and quickly biodegrade in natural settings. Combining our proprietary biodegradable filters with Poda’s unique and proprietary biodegradable heat-not-burn cigarettes is surely a winning combination.”
August 19, 2021
Nedal Salem to Lead BAT Malaysia

Photo: BAT
BAT Malaysia has named Nedal Salem as its new managing director, reports The Star.
The appointment follows the resignation of Jonathan Reed, who will take up the role of group head of combustibles with BAT PLC from Sept. 1, 2021.
“On behalf of the board, we thank Jonathan for his visionary leadership and accomplishments during his tenure as [managing director],” said BAT Malaysia chairman Tan Sri Aseh Che Mat. “We have seen a remarkable business turnaround under his leadership and wish Jonathan the very best in his next appointment.”
Salem is currently the managing director and CEO of Ceylon Tobacco Co. in Sri Lanka.
August 19, 2021
Anthony Johnson Joins 22nd Century Board
Anthony Johnson
22nd Century Group has appointed Anthony Johnson to its board of directors. Johnson is an accomplished life sciences and biotechnology executive leader with broad expertise in corporate strategy, technology development, marketing and business development. Johnson will serve as a member of the board’s scientific advisory and compensation committees.
Johnson is co-founder, president and CEO of Kodikaz Therapeutic Solutions, a next-generation nonviral gene therapy company. He is also a founding partner of Buffalo Biosciences, a lifescience strategic business management firm that supports the evaluation and commercialization of bioscience technologies from concept to market. Previously, he was president and CEO of Empire Genomics, where he transformed a concept formed at a university lab into a preeminent oncology molecular testing enterprise. He also served as the business leader of the stem cell and regenerative medicine franchise for Thermo Fisher (Invitrogen Corporation).
Johnson is an Aspen Institute Health Innovation Fellow and a member of the Aspen Global Leadership Network. He currently serves on the boards of several organizations, including the WNED/PBS broadcasting service of Western New York.
“Anthony is an industry visionary in the biotechnology field and a strategy expert in both domestic and international capacities. He also holds extensive experience with boards and committees, in mentoring businesses and entrepreneurs and in serving communities,” said 22nd Century Board Chair Nora Sullivan in a statement. “We are fortunate to welcome him to our board of directors where we are confident his contributions will have a significant impact on our company’s business development, commercialization and value creation efforts.”
“Anthony is a multi-talented business strategist and leader with key relationships across the pharma/biotech, diagnostic, investment banking and funding arenas worldwide,” said James A. Mish, CEO of 22nd Century Group. “Having lived and worked in Europe, South America and the U.S., his diversity of domestic and overseas experiences will be an instrumental resource as we execute our international initiatives. We are excited to have Anthony join the 22nd Century family as we build on our broad recognition as a leading plant-based lifescience company.”

Photo: akub Jirsák | Dreamstime.com
August 19, 2021
Tobacco Board Ups Andhra Crop Size

Photo: Tobacco Reporter archive
The Tobacco Board of India has fixed the 2021–2022 crop size for Andhra Pradesh at 130 million kg, reports The Times of India, nearly 15 million kg more than last year’s crop size.
The decision to authorize a larger crop was driven by the reasonably decent prices offered by traders for the most recent tobacco crop.
In April, the board increased the 2021–2022 crop size for Karnataka to 97 million kg from last year’s 88 million kg.
The board trimmed the crop sizes for Andhra Pradesh and Karnataka in the wake of Covid-19. But with traders buying the entire stock, the board decided to revive production.
The board also elected K. Vasudeva Rao as vice chair for a one-year term during the crop size meeting.
August 18, 2021
PMI Launches Bladeless IQOS in Japan

Photo: Kuznietsov Dmitriy
Philip Morris International has launched IQOS Iluma, the brand’s first tobacco-heating system based on induction-heating technology, in Japan.
The device’s Smartcore induction system heats the tobacco from within the new Terea Smartcore Stick. These newly designed sticks are to be used only with IQOS Iluma, which features an auto-start function that detects when the Terea stick is inserted and automatically turns on the device.
According to PMI, the bladeless IQOS devices offer a cleaner way to heat tobacco from the core without burning it. They also provide a more consistent experience and leave no tobacco residue, eliminating the need to clean the device. Additionally, the devices generate no combustion and no smoke. PMI says its market research indicates that IQOS Iluma provides a more pleasurable experience compared to previous IQOS generations.
“IQOS Iluma is our most innovative offering to date and the new flagship in our portfolio of science-backed, smoke-free products. Its breakthrough induction-heating technology heats tobacco from within, without burning, so there’s no smoke, no ash and, like previous IQOS devices, it emits, on average, 95 percent lower levels of harmful chemicals compared with cigarettes,” said Michele Cattoni, vice president of heated-tobacco platforms at PMI, in a statement.
“However, unlike our previous tobacco-heating systems, IQOS Iluma has no blade. That means no tobacco residue or cleaning—ever. With this, and other product features, we aim to address consumer pain points that may have hindered some adult smokers from beginning or maintaining their journey away from cigarettes in the past.”
IQOS Iluma is available in two versions—IQOS Iluma Prime and IQOS Iluma. Both devices use new induction-heating technology but offer different designs. IQOS Iluma Prime and IQOS Iluma are available in Japan for pre-order on IQOS.com beginning Aug. 17, 2021, and for purchase at IQOS stores on Aug. 18, 2021.
As of June 30, 2021, PMI’s smoke-free products are available in 67 markets. The company has stated its ambition to be present in 100 markets with its smoke-free products by 2025. There are more than 20 million users of the IQOS tobacco-heating system globally, and PMI estimates that more than 73 percent (approximately 14.7 million) of these men and women have switched completely to IQOS and stopped smoking with the balance in various stages of switching. PMI’s ambition is that by 2025, at least 40 million PMI cigarette smokers who would otherwise continue to smoke will have switched to smoke-free products. Furthermore, the company’s ambition is that more than half of its net revenues will come from smoke-free products by 2025.
August 17, 2021
PMI Enters Tender Period with Vectura

Photo: Tobacco Reporter archive
Philip Morris International has published an offer document with U.K.-based Vectura Group in connection with the recommended cash offer to acquire the inhaled therapeutics company. Under the terms of the acquisition, Vectura shareholders would be entitled to receive 165 pence per share, a 60 percent premium to the ex-dividend closing price of 103 pence per Vectura share on May 25, 2021.
“PMI’s acquisition of Vectura is part of our long-term strategy to transform PMI by investing in scientific excellence and leveraging its capabilities and expertise,” said PMI CEO Jacek Olczak. “Our investment will accelerate the development and delivery of inhaled therapeutics to address many of today’s unmet medical needs. We look forward to working with Vectura’s great people as we embark on the next stage of our transformation.”
In a press note published on its website, PMI also detailed the ways in which it would support Vectura’s growth. Among other things, the cigarette manufacturer intends to build on the company’s leading scientific capabilities to develop products and services that go beyond nicotine.
August 17, 2021
22nd Century Rings NASDAQ Closing Bell

Screen capture of the NASDAQ video
22nd Century Group rang the Nasdaq Closing Bell on Aug. 16, 2021, in celebration of the transfer of its stock listing to the Nasdaq Capital Market from the NYSE American. The company’s common stock began trading at that day’s market opening under the same ticker symbol, “XXII.”
“We are thrilled to join the Nasdaq family, and it’s an honor to celebrate our listing with today’s closing bell ceremony,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.
“The visibility and exposure we will gain through our uplisting to Nasdaq is an important part of our efforts to build toward the future. Along with our primary mission to reduce the harm caused by smoking, we are actively focused on positioning 22nd Century for long-term revenue growth and driving value creation across multiple plant franchises and global market opportunities.”
A video of the 22nd Century closing bell ceremony is available here.
August 17, 2021
Vapers Urged to See Doctor Ahead of Rules

Photo: Taco Tuinstra
The Therapeutic Goods Administration (TGA) is urging Australian vapers to make appointments with their general practitioners to discuss their smoking cessation options ahead of new vaping rules.
Effective Oct. 1, Australian consumers will need a valid prescription to legally obtain nicotine vaping products, such as nicotine e-cigarettes, nicotine pods and liquid nicotine, from an overseas website. A valid prescription is already required to purchase nicotine vaping products from Australian pharmacies.
Purchase of nicotine vaping products from other Australian sources will remain illegal, the TGA said in guidance documents released on Aug. 12.
From Oct. 1, Australian Border Force officials can stop an import at the Australian border and destroy the product if they suspect that it is unlawful and there is not a prescription available.
According to the TGA, the new rules balance the need to prevent adolescents and young adults from taking up nicotine vaping (and potentially smoking) while enabling current smokers to readily access these products for smoking cessation with appropriate medical advice.
While the TGA has not yet registered any nicotine vaping products, the agency says it is working closely with several potential applicant companies.
August 16, 2021
Pyxus Improves Revenues and Net Loss

Pieter Sikkel (Photo: Pyxus International)
Pyxus International reported sales and other operating revenues of $333.3 million for the three months ended June 30, 2021, up 26.8 percent from $262.8 million for the three months ended June 30, 2020. Gross profit as a percent of sales increased to 12.6 percent from 7.5 percent. Net loss improved 87.5 percent to $11.5 million while adjusted earnings before interest, taxes, depreciation and amortization increased 92.2 percent to $14.8 million.
“Fiscal year 2022 is progressing nicely and is in line with our expectations thus far. In the first quarter, we began to catch up from prior-period shipping delays driven by the pandemic and customer shipping instructions,” said Pieter Sikkel, president and CEO of Pyxus, in a statement.
“In the leaf business, our inventory levels are consistent with our expectations, and our uncommitted inventory decreased compared to the prior year. We continue to see customers look for ways to reduce complexity in their supply chains through partnerships with suppliers who support their environmental, social and governance objectives. British American Tobacco’s Indonesian subsidiary recently adopted a new leaf supply arrangement, which involves shifting contract volumes from its direct operations to one of our tobacco subsidiaries. Effective this crop season, we will begin processing the additional volume in our local facilities prior to its sale to BAT.
“With regards to e-liquids, we are encouraged that the Food and Drug Administration is continuing to take action against illegally marketed tobacco products, as evidenced by the most recent warning letters requesting certain companies remove their flavored disposable e-cigarettes and youth-appealing e-liquid products from the market because they do not have the required premarket tobacco product applications.
“Momentum is building across the business as we leverage the savings from fiscal 2021 restructuring initiatives. We continue to expect fiscal 2022 sales to be between $1.65 billion and $1.8 billion, SG&A expense to be between $140 million and $145 million (excluding nonrecurring items and potential changes in foreign currency exchange rates), and adjusted EBITDA to be between $150 million and $170 million. Our global team is committed to the strengthening of our business while making positive contributions to a sustainable world.”
August 16, 2021