Author: Staff Writer

  • Bhutan Moves to Legalize Tobacco

    Bhutan Moves to Legalize Tobacco

    Photo: s_jakkarin

    The National Assembly of Bhutan has taken a first step toward lifting the country’s ban on tobacco products, reports East Mojo.

    Passed on June 25, the Tobacco Control (Amendment) Bill 2021 and Tax Bill of Bhutan 2021 would legalize the selling, buying, possession, distribution and transportation of tobacco and tobacco products in the country. Manufacturing tobacco would remain illegal, however.

    By legalizing tobacco, legislators hope to help check the spread of Covid-19, which they believe has been worsened by the continuous smuggling of tobacco products through Bhutan’s porous southern border.

    The act also mandates that the government provide counselling and treatment to facilitate tobacco cessation. Premised on the physical health and well-being of the Bhutanese people, the legislation recognizes the harmful effects of tobacco consumption and exposure to tobacco smoke on both spiritual and social health.

    The bill will now be referred to the National Council for endorsement.

    Bhutan banned tobacco sales in December 2004. Tobacco Reporter was the first to report from the world’s only officially smoke-free nation.

  • Tobacco Tax Hike Clears German Upper House

    Tobacco Tax Hike Clears German Upper House

    Photo: Sebastian H

    Germany’s upper house of parliament, the Bundesrat, on June 25 approved tobacco tax reform legislation, which includes tax hikes on both traditional cigarettes and next-generation products, reports the Berliner Zeitung. 

    In 2022 and 2023, the tobacco tax on a pack of 20 combustible cigarettes will increase by an average of €0.10 ($0.12) each year; in 2025 and 2026, it will go up by another €0.15 each year. A pack of branded cigarettes currently costs around €7 in Germany, which last raised its tobacco taxes in 2015.

    Manufacturers are likely to pass the higher taxes on to consumers.

    Around one in four German adults regularly smokes cigarettes. Health activists had called for significantly higher tobacco tax hikes. The German Cancer Research Center, for example, said the rate would have to increase by at least 10 percent to make a significant dent in smoking. The increases approved by the Bundesrat amount to 3 percent and 4 percent, respectively.

    Tobacco taxes earned Germany €14.7 billion in 2020. Without a tax increase, the tax authorities had forecast tobacco tax revenues of €14.1 billion for 2022; with the rules that have now been adopted, they anticipate almost €16 billion.

    The tax increase disproportionally targets e-cigarettes and the consumables for tobacco-heating devices—a feature that has attracted considerable criticism from the vapor industry and tobacco harm reduction advocates, who believe such products should be taxed comparatively lightly because they are believed to be less harmful than combustible cigarettes.

    SPD politician Michael Schrodi rejected such criticism by pointing out that novel tobacco products have been taxed at low rates to date. “Now they are being taxed appropriately because they too are a health hazard and are potentially addictive,” he said.

  • RYO Tobacco Smuggling Network Dismantled

    RYO Tobacco Smuggling Network Dismantled

    Law enforcement organizations in Spain and Portugal have dismantled an organized crime group involved in large-scale tobacco smuggling, according to Europol.

    The criminals would illegally import from Spain to Portugal large quantities of tobacco leaf and strips, destined to produce both cigarettes and tobacco for roll-your-own cigarettes, which were subsequently distributed onto the Portuguese black market.

    On June 24, police arrested eight Spanish and Portuguese individuals and seized 11 tons of tobacco leaf and fine-cut tobacco alongside 90,000 illegal cigarettes and 186,500 cigarette filters. The amount of tobacco seized is enough to produce some 11 million cigarettes worth €2.7 million ($3.22 million) in Portugal.

    The criminals were managing the import of the tobacco via several companies established with the sole purpose of committing excise fraud. Cutting and processing facilities had been set up in Spain, from which the tobacco was shipped to Portugal where it was stored in different warehouses until it was distributed further.

    The revenue loss generated by these tobacco products illegally imported from Spain to Portugal is estimated at more than €2 million.

    Europol brought together the national investigators on both sides who have since been working closely together to establish a joint strategy to bring down this network. Since then, Europol has provided continuous intelligence development and analysis to support the field investigators.

  • Kretek Int’l Announces Leadership Promotions

    Kretek Int’l Announces Leadership Promotions

    Photo: tomertu

    Kretek International has announced a series of senior management promotions.

    Jason Carignan, currently chief marketing officer of Kretek, will become president of Phillips & King International and TMG International. Carignan’s new role will involve the strategic expansion and digital transformation of the Phillips & King and TMG businesses to serve the evolving needs of independent retailers across the country. Sergio Montolfo, executive vice president and general manager, will report to Carignan and will continue in his role overseeing sales and operations of the business.

    Carignan joined the company in 2014 and is credited with the strong growth of Kretek’s many proprietary brands and subsidiaries. Most recently, Carignan served as president of Dryft Sciences, a Kretek subsidiary, where he led the start-up, manufacture and commercialization of Dryft nicotine pouches until the company’s sale to Modoral Brands in November 2020.

    “I have tremendous confidence in Jason Carignan, who has championed many of the company’s key successes over the years,” says Kretek President Sean Cassar. “With Jason at the helm of Phillips & King, we’re ready to rapidly advance our business modernization efforts in order to capitalize on the many growth opportunities ahead and to achieve our corporate objectives.”

    Additionally, Albert Jose, currently director of Kretek marketing, has been promoted to senior vice president of sales and marketing for Kretek. Jose joined Kretek in 2012, when he began as a brand manager, and over the past nine years has led marketing and brand management efforts for many of the company’s most important products, including Djarum and Cuban Rounds. In moving into his new role, Jose’s duties will expand to include oversight for all of Kretek’s dedicated sales channels and their related marketing programs and product development efforts.

    “The Djarum and Cuban Rounds product portfolios represent significant growth opportunities for the company,” says Cassar. “We look forward to Albert Jose and the entire sales and marketing team working together to expand distribution and build on the strong sales and margin growth our company has achieved over the years.”

    Both Jason Carignan’s and Albert Jose’s roles will take effect immediately.

  • Parkside Boosts Malaysian Operations

    Parkside Boosts Malaysian Operations

    Paula Birch (Photo: Parkside)

    Specialist packaging solutions provider Parkside has announced it has placed significant investment in the latest flexible packaging production technology at its Malaysian headquarters.

    Demand for hygienic, safe and convenient packaging is growing in the region, and as a result, Parkside has been investing in its production of high barrier and sustainable flexible packaging solutions at the facility. With a 10-color print press, three coater/laminators, three slitting lines and flexo plate making facilitates alongside a new business development strategy, the company is now targeting more categories within the Asia-Pacific food and drink sector.

    “After the challenges of 2020, it’s clear that the way we manufacture, process and supply products has been changed for good,” said Global Sales Director Paula Birch, who was recently appointed general manager of Parkside Asia. “As consumer behavior and demands have evolved in the region, the supply chain has adapted. How closely brands can reflect the needs of shoppers—and how effectively they can use this to shape their operations—is set to prove a real differentiator as they adapt their strategies, and we are here to help!

    “We have a fantastic best-in-class facility in Kuala Lumpur able to produce a wide range of flexible packaging solutions from lidding films and bags through to next-generation compostable and recyclable sustainable pack designs. 

    “We are widely known in Asia for our tobacco products, but we are so much more than that. We have the perfect product portfolio to address these emerging consumer trends, and it is vital moving forward [that] we ensure brands are aware of our capabilities.”

  • Canada: Flavor Ban Could Boost Smoking

    Canada: Flavor Ban Could Boost Smoking

    Photo: jedsadabodin

    Health Canada has made a “startling admission” that its recent policy to ban the sale of flavored vapor products could contribute to a rise in cigarette consumption, reports Filter, a publication owned and operated by The Influence Foundation, a nonprofit organization that advocates for rational and compassionate approaches to drug use, drug policy and human rights.

    Into its regulatory impact analysis statement on the intended flavor ban, Health Canada acknowledges that its legislation could lead to an increase in smoking, according to Filter.

    “It is anticipated that some dual users who currently use flavored vaping products would not substitute their purchases with tobacco[-flavored] and mint/menthol-flavored vaping products. They would choose to purchase more cigarettes,” the statement reads.

    “The statement is very direct. It’s basically saying, ‘We’re Health Canada, and we’re going to do something that kills Canadians,’” said David Sweanor, an industry expert and chair of the Advisory Board for the Centre for Health, Law, Policy and Ethics at the University of Ottawa.

    “The statement is very direct. It’s basically saying, ‘We’re Health Canada, and we’re going to do something that kills Canadians.'”

    David Sweanor, chair of the Advisory Board for the Centre for Health, Law, Policy and Ethics at the University of Ottawa

    Matt Culley, a board member of the U.S.-based CASAA, a consumer advocacy nonprofit that promotes smoke-free alternatives to combustible tobacco, said, “The fact that a government can brazenly admit their policy will lead to more smoking and death is wild. It really goes to show how demonized vaping remains.”

    The policy appears to be at odds with Canada’s intention to reduce its smoking rate to 5 percent by 2030.

    “Our policies have not aligned with the country’s goals,” Darryl Tempest, the executive director and chief advocate of the Canadian Vaping Association (CVA), told Filter. “It is not a public policy that relates to adults or harm reduction or small businesses.”

    The country amended its tobacco laws to include vaping products in 2018, and some Canadian provinces have already enacted their own flavor bans.

  • Pfizer Pauses Chantix Over Nitrosamines

    Pfizer Pauses Chantix Over Nitrosamines

    Photo: Antwon McMullen

    Pfizer on June 24 announced that it is pausing distribution of its anti-smoking treatment, Chantix, after finding elevated levels of cancer-causing agents called nitrosamines in the pills, reports Reuters. Pfizer is recalling a number of lots of the anti-smoking drug. Pfizer said the pause in distribution is out of abundance of caution and pending further testing.

    The U.S. Food and Drug Administration has in the past reached out to companies whose drugs had nitrosamines above accepted levels. Global revenue from Chantix fell 17 percent to $919 million in 2020 as Covid-19 curbs hampered demand and Pfizer lost patent protection in the U.S. last November.

    “The benefits of Chantix outweigh the very low potential risks, if any, posed by nitrosamine exposure from varenicline on top of other common sources over a lifetime,” said Pfizer spokesperson Steven Danehy.

  • Fewer Smokers but More Nicotine Users

    Fewer Smokers but More Nicotine Users

    Photo: sezerozger

    While the number of young Danes smoking cigarettes has fallen, the number of young people who use at least one tobacco or nicotine-related product has increased since last year from 27 percent to 28.6 percent, reports the Copenhagen Post, citing a new report released by the National Institute of Public Health.

    Researcher Lotus Sofie Bast noted that the April 1, 2020, cigarette excise tax increase drove the nicotine consumption habits of young people from the more expensive cigarettes to less expensive vapor products. The report will be an annual examination of young people’s tobacco and nicotine habits.

    Researchers hope to monitor the effect of newer measures like higher cigarette prices, standardized tobacco packaging and products hidden behind the counter in the coming years.

  • Industry Welcomes Draft U.K. Vaping Guideline

    Industry Welcomes Draft U.K. Vaping Guideline

    Photo: pavel_shishkin

    The U.K. Vaping Industry Association (UKVIA) has welcomed the publication of draft guidance by the government’s top health advisory body to support health workers in helping smokers transition successfully to vaping.

    The National Institute for Health and Care Excellence (NICE) has published draft guideline recommendations, currently out for consultation, which make the case for healthcare workers to inform patients where they can find vaping products, proactively promote the fact that vape products are substantially less harmful than conventional cigarettes and provide advice on how to use vape devices correctly.

    This announcement follows fast on the heels of National Health Service (NHS) trials that were announced recently, whereby vaping devices are given to smokers in A&E departments. These are already under way in some NHS hospitals in England and Wales.

    These developments coincide with a new campaign being planned by the UKVIA to support frontline workers in helping smokers successfully quit smoking using vaping through the advice they give.

    “It’s great to see that the NHS is embracing the huge public health potential of vaping,” said John Dunne, director general of the UKVIA, in a statement. “Pro-vaping actions such as NICE’s draft guideline recommendations and the NHS trials are key to ensuring the government meets its target for a smoke-free Britain.

    “Our own campaign, which we will be launching in July, will provide a much-needed resource to help frontline healthcare staff give the right advice to smokers on how best to quit using vaping.

    “A one-size-[fits]-all approach is not the way to maximize quit rates amongst smokers from taking up vaping. It depends on their level of smoking, which in turn determines the flavors, nicotine levels and devices that they should be using. We are using the many years of experience amongst our members to equip the NHS with advice that is proven to get results.”

  • FDA Chief Grilled About Action on Youth Vaping

    FDA Chief Grilled About Action on Youth Vaping

    Photo: Araki Illustrations

    Juul Labs has played a significant role in creating a youth vaping epidemic in the United States, according to Acting Food and Drug Administration Commissioner Janet Woodcock, reports Bloomberg.

    Asked during a June 23 hearing of the House Oversight Subcommittee on Economic and Consumer Policy if Juul was “the e-cigarette company most responsible for creating this epidemic,” Woodcock answered that it does “appear” to be the case.

    Juul has been accused of marketing its products to youths, a charge the company denies.

    Juul is one of hundreds of e-cigarette makers that is seeking the FDA’s permission to continue to sell its products. Those marketed since February 2007 have had to submit applications to the FDA in order to stay on the market.

    Approval is based on the FDA finding a product is “appropriate for the protection of the public health,” which requires makers to demonstrate that their products won’t promote youth use but instead will help adults quit smoking.

    Juul underage use fell in 2020 compared with other companies, according to a study in JAMA Pediatrics. That year also saw 1.73 million less youth tobacco users overall than in the year prior, according to a national youth tobacco survey conducted by the FDA and the U.S. Centers for Disease Control and Prevention.

    Woodcock said Wednesday that the agency is prioritizing products from “about five” e-cigarette companies that account for large portions of the market but did not name the companies.

    Subcommittee Chairman Raja Krishnamoorthi urged the FDA to deny approval for all vaping companies in the agency’s ongoing review of their products.

    The agency must decide on marketing applications by Sept. 9.