Author: Staff Writer

  • Apples to Apples

    Apples to Apples

    Photo: esthermm

    The comparison made between tobacco deaths and Covid-19 deaths does not hold water.

    By George Gay

    Most of us compare things on a regular basis and make choices between them, either as part of practical or theoretical exercises. For instance, a group of friends might be having dinner when one of them asks whether each of her friends prefers bitter, salty, sour, sweet or umami tastes. Initially, one replies that she prefers sweet while another opts for sour. But after a while, the exercise becomes more involved as the diners think more deeply about the question. Somebody asks whether the person who posed the question was referring to the tastes associated with solid food or drinks while another asks whether the food or beverages were being taken as part of breakfast, lunch, dinner or a snack. And yet another asks whether the food and beverages were being consumed and the tastes experienced outdoors on a warm day or indoors on a cold one, as part of a celebration or in an effort to cheer oneself up …

    At this point, the hostess removes all the sharp implements from the table and grumpily guides the discussion toward something less controversial, such as politics or religion.

    It is true that such questioning can be annoying, but it is important to understand something of the context when a comparison is being made. For too long, in my view, large sections of the tobacco and tobacco control industries have blindly accepted the idea that tobacco prohibition wouldn’t work anywhere in the 21st century because liquor prohibition didn’t work in the U.S. in the 1920s and 1930s. Tobacco prohibition might not work, but simply relying on the evidence gleaned from one shot of liquor prohibition makes no sense to me.

    The trouble is, comparisons can be quite jarring because of the seemingly significant conclusions drawn from them, and this can blind us to the necessity to ask the obvious question. Does this comparison hold water? Take this sentence from a press note I received in May: “Worldwide, the tobacco epidemic has not abated; in fact, the number of deaths caused by tobacco has grown to over 8 million a year, far more than Covid-19 deaths but receiving far less attention or support.”

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    Wanted: Context

    On the day I received the press note, Wikipedia was showing a worldwide death toll from Covid-19 of 3.4 million, so, given that—I assume—the 3.4 million figure covers all deaths during the approximately 18 months from the start of the Covid-19 outbreak, which, roughly speaking, would be the equivalent of about 2.3 million deaths over 12 months, and given that the 8 million and 3.4 million figures are reasonably accurate, there is no doubt that tobacco use has been the cause of more deaths.

    But these figures need context. The first thing that needs to be borne in mind is one so overwhelmingly obvious it often gets overlooked. We all die of something, sometime. So what I assume is being talked about here is a comparison of what are generally known as “premature deaths,” an idea that is often used but I struggle to define. And in this regard, it should be noted that whereas smokers can smoke for 45 to 50 years* before they die of a tobacco-related disease, those who contract Covid-19 and die from it do so, as far as we know at the moment, within a matter of days, weeks or months.

    The problem as I see it is that the two causes of death are so different that a comparison is not useful. According to the figure generally bandied about, tobacco use—overwhelmingly cigarette smoking—is the cause of death of 50 percent of users whereas only about 2 percent of those who are known to have contracted Covid-19 die from the effects of the virus.

    You also have to question why deaths from tobacco use are being compared with those from Covid-19. Why not compare the deaths from, say, smoking cigars with those of Covid-19? Or why not compare the deaths from all tobacco use with deaths from all viral diseases? After all, viruses can cause any number of human diseases, including, according to Medical News Today, smallpox; the common cold and different types of flu; measles, mumps, rubella, chicken pox and shingles; hepatitis, herpes and cold sores; polio; rabies; Ebola and Hanta fever; AIDS; severe acute respiratory syndrome (SARS); dengue fever, Zika and Epstein-Barr. Some viruses, such as the human papilloma virus, can lead to cancer.

    But I think the weakest part of the comparison occurs because tobacco initiation, smoking and related deaths have been studied for decades while the study of Covid-19-related deaths is a work in progress. Most people are happy to say tobacco use kills 50 percent of users within a period of up to 50 years after first use, but we simply don’t know what the case is with Covid-19. How many of those who have contracted the virus, and this, let’s face it, is an unknown number, will, 5 to 50 years down the line, be “killed” by “long Covid”? And will we even know the virus “killed” them?

    There are, to me, a number of other important issues here. People take up smoking by choice while, overwhelmingly, I assume, people do not take up Covid-19 by choice. Importantly, tobacco smoke is visible and can be detected by smell from a good distance away, so most nonsmokers are able to avoid it. Covid-19 is undetectable by the individual but can be passed to that individual in a myriad of ways. And let’s not forget that there is no cure for a virus and no way to tax it.

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    Undercounting

    Above, I assumed the figures of 8 million and 3.4 million were reasonably accurate so that the comparison was valid from a simple quantitative point of view. But are they, I wonder? My guess would be that the 3.4 million is an underestimate partly because many of the leaders of the authoritarian states increasingly taking center stage in the world are such that they cannot admit the failures they have inflicted on their populations. The U.K. is a case in point, but at least here, we still have some independent agencies willing and able to call out the government. Other states are not in that position.

    And what of the 8 million figure? Without wishing to deny the burden of disease caused by smoking, I would guess that this figure—and the many other hugely rounded figures bandied about—is probably best described as the result of the statistical kneading of data of varying degrees of reliability and assumptions.

    Meanwhile, the press note sentence quoted near the start of this story says that despite the fact that tobacco-related deaths outnumber Covid-19-related deaths, the former is receiving far less attention or support than the latter. This seems to be an odd grievance to bring up at this time, and one not wholly valid, I would say. Tobacco use has been the subject of almost constant bombardment by the massed forces of tobacco control for more than half a century. It is the subject of the WHO’s Framework Convention on Tobacco Control and, even now, in the middle of a fearsome pandemic and as a climate emergency rages, the WHO is preparing to hold a virtual meeting of the parties to the convention later this year.

    None of this is meant to support tobacco smoking. It would be ridiculous for anyone to take up smoking now knowing the risks that have been identified over the years. And I support the general thrust of the report the press note introduced, which is aimed at trying to speed up tobacco use cessation among adults, though I would limit that to cigarette smoking cessation and add the caveat that I am not in a position to judge some of the strategies suggested.

    The report “Cessation: The Right to Health” was launched by Action on Smoking and Health U.S. and the International Center for Tobacco Cessation in advance of World No Tobacco Day, which was due to be held on May 31, after this piece was written.

    The Power of Encouragement

    Two other things are worth mentioning. One is the statement that is part of the press note sentence mentioned above: “Worldwide, the tobacco epidemic has not abated; in fact, the number of deaths caused by tobacco has grown to over 8 million a year …” What lesson should be drawn from this? To my mind, it is important to admit that past tobacco control methods have failed and that we need to try new approaches, something, on my reading, the report is advocating.

    Another point worth mentioning is the report’s emphasis on the obligation of nations to try to ensure their citizens quit tobacco use. “Every nation has made a general commitment, under human rights law, to provide their citizens with the highest attainable standard of physical and mental health,” the report says early on. But it must be borne in mind also that tobacco use is legal, and citizens have the right to go about their daily lives within the law and as they see fit without undue interference.

    This need to avoid undue interference brings me back to comparisons. If I were put under an obligation to teach a young person to transition from a bike with stabilizer wheels to one without them, there are a number of ways I could go about it. I could say to the youngster that if she succeeds, I’ll buy her all the chocolate she wants. I could, on the other hand, tell her that if she doesn’t succeed, she is going to fall off, hurt herself and become the laughingstock of her friends. Otherwise, I could tell her that she has been riding her bike with stabilizers for a long time without the stabilizers touching the ground, so, in a way, she has already been riding a bike without stabilizers.

    The first method could be described as bribery, the second as bullying and the third as encouragement. For too long, tobacco control has used bribery and bullying while describing them as encouragement. If this new report promotes, as I think it might, real encouragement, then we might be starting to turn a corner in tobacco control.

    *This is the result of a back-of-the-envelope calculation using a U.S. Centers for Disease Control and Prevention figure of an average of 10 years of life lost to tobacco use, a Wikipedia figure of 78.5 years for the average life expectancy of a person in the U.S. and a Tobacco-Free Kids figure showing 90 percent of people start smoking before they leave their teens.

  • The Test of Time

    The Test of Time

    Photo: Vitrocell

    Regulations and next-generation products are driving demand for quality-control instrumentation.

    By George Gay

    It is well known that the arrival of new-generation tobacco and nicotine products has brought with it a need for new testing regimes and instruments. What is perhaps surprising is the smoothness with which these new instruments have fitted into and alongside portfolios of instruments designed with traditional tobacco product manufacture and testing in mind. Ian Tindall, of Cerulean, told me in June that he would struggle to name a product developed by his company during the past few years that did not have its origins or use profile in the new product categories such as vaping devices or heated-tobacco products (HTP). But, he said, this newly developed equipment had added to Cerulean’s range, from which very few pieces of equipment had been “retired.” All the legacy equipment had uses either in the combustible product sector or in the new product sector, and the newly developed equipment often had application in respect of traditional tobacco products. “[W]e have two-way traffic as far as instrumentation is concerned between new and established product use,” Tindall wrote as part of an email exchange.

    Eric Favre

    All of the instrumentation companies TR spoke with in June, either in email exchanges or during telephone calls, cited the development of next-generation products (NGP) or reduced-risk products (RRP) as being, directly or indirectly, the main driver of demand for tobacco and nicotine sector instruments. Eric Favre, of Sodim, said, for instance, that instrument companies were having to develop equipment to measure additional product parameters linked to the complexity of RRP design. At the same time, he added, the need was increasing for the testing of emissions and the analysis of physical parameters in respect of hemp products.

    Meanwhile, Tobias Krebs, of Vitrocell, said that, for his company, one of the main market drivers was the need for various organizations and companies to assess the possible impact on human health of the consumption of tobacco and nicotine products while another driver was the necessity of assessing in vitro data for submission to regulatory authorities.

    Chris Crawley

    While agreeing that the emergence of NGPs had been a driving force for instrumentation sector demand, Chris Crawley, of Axiom Select, made the point that this demand had required a significant investment in new instruments against a background of little growth. Indeed, he said, demand for traditional tobacco product instruments was flat and focused mainly on the replacement market and after-sales service.

    This is not to say the replacement market is not important. Tindall said there was a perennial demand created by the need eventually to replace aging installed equipment and that this need could provide a steady “demand backbone” to an instrumentation business. Another driver, he said, was innovation, which could take different forms. On one hand, there were the sorts of innovations driven by instrument suppliers that might result in improved equipment that was faster, more accurate and easier to use, for instance, but that might otherwise result in solutions that provided for previously unrecognized needs.

    On the other hand, there were the collaborative developments driven by the needs created by customer innovations. “The obvious example here is heat-not-burn products that require novel physical measurements of components and finished sticks, and also different methods of generating and capturing aerosols,” he said. “This has spawned new products and product configurations that are increasingly being deployed in factories ’round the world. Often, this demand is company specific and so generally the world does not see those novel instruments, but sometimes the opportunity exists to share these innovation-led products…”

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    The Role of Regulation

    Ian Benson

    There was less agreement when TR asked what part regulations played in increasing or decreasing the need for instrumentation. Ian Benson, of Consultative Solutions, said he thought that regulation would only increase such demand, especially in relation to NGPs. Whereas this sector was not going to follow exactly the pharmaceutical path, traceability was increasing in importance, which meant more on-line measurements being made wherever tobacco was involved. Companies needed to know the exact nature of what they were making, and they needed to be able to recall what they had made, when, and whether it complied with regulations.

    Krebs implied that by their very existence, regulators created a need because they were looking to obtain data on new products. And Favre said that regulation always played a significant role in the need for instrumentation and that this role would not decrease. The main role, however, remained that played by quality control, emission testing and scientific studies.

    But Crawley said that while it might have been thought that all the tobacco regulations now in place and emerging would have benefited the instrumentation sector, the reality was quite different. For instance, the gathering of traditional tar, nicotine and carbon monoxide data from machine-based routine analytical smoking had actually declined—in some instances, quite significantly. Twenty years ago, some had seen the increased regulatory scrutiny as an opportunity to invest in independent laboratory testing facilities, but that market had still not materialized significantly.

    Tindall managed to agree with both camps in saying that regulations could be seen as being a significant driver and as no driver at all. Much of the regulatory landscape around conventional tobacco use had been directed toward restricting use through such policies as taxation and plain packaging, and nothing in this had driven change in inspection and test equipment or a need for greater capacity. And while regulations that had been around for a while, such as those concerned with the U.S. Food and Drug Administration’s oversight of tobacco, had driven a requirement for increased testing capacity for emissions, that boom had already happened.

    However, Tindall added, there were specific regulatory requirements in relation to HTPs that were driving a need for high levels of manufacturing controls and post-manufacture product verification, which seemingly could only increase. Where HTPs contained three, four or five nontobacco elements combined, the integrity and consistency of the final product relied on process control. And this had driven innovation in physical testing that was being carried out by, for instance, the X-ray machine and end form analyzer machines Cerulean released last year. The diversity of HTP designs demanded also that such test equipment was specific to each design.

    Looking ahead, Tindall said that potential regulations might well increase the need for instrumentation. The very low nicotine proposals the FDA was considering might impact smoking machines while individual stick marking as proposed in the U.K. and EU single-use plastics legislation could all change the way the industry controlled and measured the products it made.

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    Trends

    Photo: Sodim

    At this point, the question arises as to which tobacco and nicotine sector instruments are currently most in demand. And the answer, of course, largely relates to the specialties of the various instrument suppliers. For Krebs and Vitrocell, the answer was higher throughput exposure systems for the exposure of lung cell cultures and bacteria used in Ames tests because these instruments provided indications about the effects on human health of exposure to various compounds, and information on the relative exposure risks created by combustion and noncombustion products.

    In addition, Krebs said that demand was high for dosimetry tools for assessing the composition of aerosols online, such as Fourier-transform infrared spectroscopy and time of flight mass spectrometry: tools that were required to assess the influence of compounds on biological systems.

    For Favre, instruments for measuring physical parameters and those for measuring specific parameters related to emission testing were always in demand. And he made the point that since testing emissions from traditional cigarettes had a different set of requirements from those of testing emissions from electronic cigarettes, HTPs or hemp cigarettes, instrumentation had to be adapted as the market moved in these new directions. In addition, he said, upcoming regulation, either at a regional or global level, would intensify the need for new measurement solutions.

    Tindall, meanwhile, said any equipment to do with HTPs was in demand, given that this was where tobacco company investments in new makers and production lines were being made. Physical testing required a whole range of measurements to be made and, usually, existing instrumentation was not suitable. Demand for smoking machines and vaping machines for e-cigarettes and HTPs had probably peaked with the deadline for FDA premarket tobacco product applications, but this demand for smoking and vaping machines remained strong and would probably continue to do so for a while. However, it was demand from multinationals and independent manufacturers for equipment for testing the smoke and physical characteristics of conventional cigarettes that still made up the backbone of Cerulean’s business.

    Photo: Cerulean

    Matching Budgets and Needs

    Of course, measuring processes, products and the potential effects those products have on health are all vitally important, but the question is, are the instruments necessary to carry out such measurements affordable? The responses here were diverse but tended to suggest what I guess is obvious. A big, rich company can afford instrumentation, whereas a smaller, less well-off one might not be able to do so. Crawley said that tobacco quality control and quality assurance instruments comprised a specialist market segment and, as a result, had always been expensive. “For example,” he said, “even manual digital instruments to measure diameter, pressure-drop and/or dilution cost $20,000–30,000 and are often considered unaffordable by the smaller independent producers. A multi-parameter test station can easily cost $100,000.”

    Krebs, too, conceded that it could be expensive for small companies to carry out the sorts of testing for which his company’s instruments were designed. But, he added, the expense was less associated with the investment in such instruments than with that necessary in providing the infrastructure, such as laboratories, personnel and laboratory routines. One way this could be overcome, and often was, was to outsource such work to contract research organizations.

    Favre, meanwhile, implied that such instrumentation was generally affordable, but he came at the question from the point of view that the measurements such instruments provided were an essential part of manufacturing processes rather than add-ons or luxuries. Such instruments, he said, were needed to help control quality during the production process and thereby help to ensure compliance with regulations but also to assist with research and development.

    Tindall generally agreed with this idea, saying it was a truism that it was easy to measure the cost of quality checking, but the cost of poor or inconsistent quality was only measured eventually in lost sales and opportunities. However, he added that Cerulean was aware that different organizations had different objectives and resources when it came to investing in instrumentation and that it was important to have a product portfolio that reflected this—a continuum of equipment to match budgets and needs.

    Tindall also echoed Krebs’ comments in saying that while the entry costs for the analysis of smoking and vaping emissions could be high, the investments necessary were inflated by the infrastructure needed rather than the equipment. And he, too, pointed out that one way around this situation was to take advantage of contract research laboratories.

    Upgrades and Refurbishments

    Given that there are at least some issues to do with affordability, it has to be asked, too, whether there is a viable secondhand market in tobacco and nicotine sector instruments or whether there is a viable refurbishment business. Well, according to Crawley, for the most part the major instrument manufacturers have never entertained a serious interest in the secondhand instrument market. Managements considered the sector not large enough to warrant serious consideration, he said. It saw no commercial advantage in the sector and concluded that it detracted from potential new instrument sales. However, for enterprising individual businesses, this market gap provided a wonderful opportunity—albeit not a large one—to supply quality services and products for about a third of the normal cost.

    I think it need come as no surprise that the sort of instrumentation provided by Vitrocell doesn’t lend itself to the establishment of either secondhand or a refurbishment business. Elsewhere, such businesses do exist, but mainly they provide for internal use. So, Favre said, “secondhand” equipment might be transferred by a supplier from one manufacturing company facility to another while refurbishments were often driven by environmental or sustainability considerations. Refurbishments in the guise of upgrades might be driven by new technical requirements, such as software or controller upgrades, or by new measurement requirements. One particular upgrade might see an instrument designed for use with conventional products converted to one used for HTPs.

    Refurbishments and upgrades, meanwhile, have become a fairly major offering from Cerulean—part of its culture. There was a lot of equipment in service around the world, said Tindall, and factories had made significant investments in this equipment. So, during the past two years, Cerulean had been examining how to extend the life of it by providing a range of upgrades intended to modernize equipment. This was in addition to a long-standing refurbishment service for physical test stacks that had generally been taken advantage of when customers cascaded equipment from one plant to another.

  • IQOS Pauses Expansion After Patent Ruling

    IQOS Pauses Expansion After Patent Ruling

    Photo: Kuznietsov Dmitriy

    Philip Morris USA has paused U.S. expansion of its IQOS heat-not-burn (HnB) cigarettes following an unfavorable U.S. International Trade Commission (ITC) ruling, reports The Winston-Salem Journal, citing the company’s second-quarter report.

    In April 2020, British American Tobacco subsidiaries R.J. Reynolds Tobacco Co., RAI Strategic Holdings and R.J. Reynolds Vapor Co. filed a patent infringement lawsuit against Philip Morris USA.

    The complaint focuses on three HnB technology patents held by the company. An additional two patents are involved in a separate legal proceeding before the patent and trademark office.

    In May, an ITC administrative law judge found that the IQOS system infringes two of the plaintiff’s patents and recommended imposition of a ban on the importation of the IQOS system.

    On July 27, the ITC accepted review of the administrative law judge’s findings and recommendations on certain issues, including issues relating to the patent infringement claims and potential remedies, including a ban on the importation of the IQOS electronic device, Marlboro HeatSticks and component parts into the United States and on the sale of any such products previously imported into the United States.

    The ITC’s ultimate order is subject to review by the U.S. Trade Representative and federal court. Due to this uncertainty, PM USA has delayed further expansion of IQOS and Marlboro HeatSticks.

    IQOS is the only HnB product authorized for sale in the U.S., where it is sold by Altria. Last year, the U.S. Food and Drug Administration allowed the company to market IQOS as reducing consumers’ exposure to harmful chemicals found in cigarettes.

    The IQOS products debuted in test markets in Atlanta, Georgia, in October 2019 and Richmond, Virginia, in November 2019.

    During the second quarter, PM USA expanded retail distribution of Marlboro HeatSticks into the Triad and other metro areas of North Carolina as well as northern Virginia and Georgia.

    The expansion contributed to Marlboro HeatSticks’ retail sales volume jumping by nearly 40 percent, including reaching a 0.8 percent market share for overall cigarettes in Atlanta as well as 0.5 percent in Charlotte.

  • BAT Invests in Bangladesh

    BAT Invests in Bangladesh

    Photo: Piotr Pawinski

    BAT is investing BDT322 crore ($38 million) in its Savar, Bangladesh, factory to help meet growing demand from abroad, reports the Daily Star.

    It’s the company’s second local investment in six months. In February, the cigarette manufacturer announced an investment of BDT192.50 crore to increase its manufacturing capacity.

    Commercial operations at the plant are expected to start in October.

    BAT Bangladesh in recent months sent products to China, the Maldives and other countries despite the challenges of the pandemic, according to company Secretary Azizur Rahman.

    Net revenue from BAT’s Bangladeshi operations rose 25 percent to BDT3,841 crore. During the same period, its profits rose 43 percent to BDT862 crore.

    Performance was driven by growth in volume offset by growth in operating expenses.

  • ‘Young Vapers More Likely to Start Cigars’

    ‘Young Vapers More Likely to Start Cigars’

    Photo: Bette Ennen

    A new study from the Truth Initiative revealed that people aged 15 to 21 who use e-cigarettes or have ever used Juul have over three-time higher odds of initiating use of cigars, little cigars or cigarillos (CLCCs) compared with those who never vaped.

    The study is the first to find that using e-cigarettes strongly predicts future use of CLCCs and flavored CLCCs.

    Young people who had ever used Juul had 3.3 times higher odds of using CLCCs for the first time from 2018 to 2019 compared to those who had not used e-cigarettes by 2018. This group had 2.5 times higher odds of using flavored CLCCs compared to nonflavored CLCCs. Many CLCCs are available in an array of flavors, such as mint, menthol and fruity flavors, which are similar to those found in many e-cigarette brands.

    “We have long known that young people who vape are more likely to go on to smoke cigarettes, but these new data make it clear that e-cigarette usage can also predict other types of equally dangerous tobacco product use, including cigars, little cigars and cigarillos,” said Robin Koval, CEO and president of Truth Initiative, in a statement.

    “E-cigarettes like Juul and its competitors have some of the highest nicotine content among e-cigarettes as well as youth-appealing flavors and as this study shows, create an easy on-ramp to nicotine addiction that can swiftly progress to smoking combustible tobacco, which is still the leading cause of preventable death in the U.S. That is how the tobacco industry is initiating a new generation into a lifelong addiction and why Truth Initiative is working to help hundreds of thousands of young people in their journey to quit nicotine.”

  • WHO ‘War on Nicotine’ Lambasted

    WHO ‘War on Nicotine’ Lambasted

    Photo: Aleksey Novikov

    Knowledge-Action-Change (KAC) condemned the recently released WHO Report on the Global Tobacco Epidemic, 2021, which describes e-cigarettes as harmful.

    “The World Health Organization and its single most significant funder for anti-smoking efforts, U.S. billionaire Michael Bloomberg, have today sought to distract from years of failure under the WHO’s MPOWER tobacco control strategy by focusing instead on what U.K.-based public health agency Knowledge-Action-Change and other observers are calling a new ‘war on nicotine,’” KAC wrote in a press release.

    “On publication of the WHO’s ‘eighth annual report on the global tobacco epidemic,’ the organization is continuing its misguided insistence that vapes (e-cigarettes), snus, nicotine pouches and heated-tobacco devices, collectively known as safer nicotine products, are a threat,” KAC wrote. “This ignores the growing international, independent evidence that they offer millions of adult smokers the opportunity to quit deadly combustible tobacco.”

    “The WHO’s self-congratulatory focus on strategy over outcomes indicates the lack of vision and ambition underpinning the international tobacco control establishment,” said Gerry Stimson, co-director of the Global State of Tobacco Harm Reduction (GSTHR) project and emeritus professor at Imperial College, London. “This report offers no surprises and no hope for the world’s 1.1 billion smokers who need and deserve better.”

    The GSTHR estimates that there are 68 million vapers worldwide, 20 million users of heated-tobacco products and 10 million snus users. By comparison, there are 1.1 billion smokers.

  • JT Ups Guidance After Strong Quarter

    JT Ups Guidance After Strong Quarter

    Masamichi Terabatake (Photo: JT)

    Japan Tobacco reported revenue of ¥1.14 trillion ($10.45 billion) in the first six months of 2021, up 11.1 percent from the comparable 2020 period. Adjusted operating profit at constant currency increased 26.9 percent to ¥365.1 billion. On a reported basis, adjusted operating profit increased 24.5 percent to ¥358.2 billion. Operating profit was ¥322.1 billion, up 27.8 percent from the comparable six months in 2020.

    JT revised its revenue and adjusted operating forecasts upward by ¥120 billion and ¥10 billion, respectively.

    “JT Group delivered a robust performance in the first half, driven by strong business momentum. This was a result of continued market share gains in combustibles in many markets and continued tailwinds of strong industry volume trends due to travel restrictions in some mature markets,” said Masamichi Terabatake, president and CEO of the JT Group, in a statement.

    “Considering this robust performance, we have revised our full year guidance upward.

    “We have launched Ploom X, our next-generation device for heated-tobacco sticks in Japan, the world’s largest heated-tobacco market. Listening carefully to our consumers around the world, we have developed our first global model, offering a richer and enhanced taste, improved design and a more intuitive user experience. Ploom X will gradually be rolled out across other markets.

    “We are also making steady progress on several initiatives announced in February this year, including the rollout of our new operating model for the combined one tobacco business as well as measures to strengthen competitiveness in the Japan market. These initiatives will act as a catalyst for future growth while we continue to offer products and services which exceed our consumers’ expectations.”

  • Altria Raises Guidance on Strong Six Months

    Altria Raises Guidance on Strong Six Months

    Photo: Altria Group

    Altria Group’s net revenue was $6.9 billion in the second quarter, up 8.9 percent compared to the same quarter in 2020. Net revenue was $13 billion in the first half of 2021, up 1.9 percent compared to 2020.

    “Altria delivered outstanding results in the second quarter thanks to the continued strength of our tobacco businesses and the hard work of our highly talented employees,” said Billy Gifford, Altria’s CEO, in a statement. “Our teams have continued their commitment to ‘Moving Beyond Smoking’ by deepening their understanding of adult tobacco consumer preferences, expanding the awareness and availability of our smoke-free product portfolio and amplifying our voice on harm reduction within the scientific and public health communities.”

    “With our strong financial performance in the first half, we have raised the lower end of our full-year 2021 adjusted diluted EPS guidance range and now expect full-year adjusted diluted EPS to be in the range of $4.56 to $4.62, representing a growth rate of 4.5 percent to 6 percent from a $4.36 base in 2020. This updated guidance reflects continued confidence in our tobacco businesses, investments in smoke-free products and the expected impact of the recently announced agreement to sell our Ste. Michelle Wine Estates business.”

  • Japan Council Slashes Leaf Cultivation

    Japan Council Slashes Leaf Cultivation

    Photo: Tobacco Reporter archive

    The Leaf Tobacco Deliberative Council, chaired by Yoshitsugu Minagawa, decided to reduce the total tobacco cultivation area based on a survey of each Japanese leaf tobacco growers’ willingness to cultivate for the 2022 leaf tobacco sales contract. The decision was based on the council’s approval of a proposal submitted by Japan Tobacco.

    In the Japanese domestic tobacco business, the total demand has continued to decline in recent years due to structural factors, such as the fall in adult population and the aging of society as well as tighter smoking-related regulations. In addition, there have been rapid changes in the market over the past few years, such as the expansion and intensifying competition of the heated-tobacco and the value segment cigarette categories.

    JT’s sales volume has continued to decline following the decline of total demand, despite efforts to strengthen the company’s top line through the growth of its heated-tobacco category and increasing the share of cigarettes.

    In light of these circumstances, JT made the proposal to reduce the total tobacco cultivation area with the aim to secure a balance of supply and demand over the mid-term and long-term and to rebuild a stable and sustainable structure to produce and procure domestic leaf tobacco.

    Specifically, JT will ask each Japanese leaf tobacco grower if they would like to cease tobacco cultivation. JT will summarize each grower’s intent on next year’s tobacco cultivation upon consultation and in cooperation with the growers’ unions. Based on the survey results, JT will then submit its proposal on tobacco cultivation areas and leaf prices for 2022 to the next Leaf Tobacco Deliberative Council scheduled for autumn.

  • Russia Lifts Embargo on Leaf Imports

    Russia Lifts Embargo on Leaf Imports

    Photo: Tobacco Reporter archive

    Russia has lifted restrictions on the import of tobacco leaf from Brazil, India, South Africa, Tanzania and Malawi, reports The Rio Times.

    The restrictions were implemented after the presence of humpback flies in shipments were discovered. In particular, it was found in raw materials from Brazil five times last year and seven times since the beginning of this year.

    The decision was made after a report from the National Plant Protection Organization of Brazil stated adoption of “comprehensive phytosanitary measures” for the resumption of tobacco leaf supplies to Russia.