Author: Staff Writer

Now You’re Cooking!

ThermoNox CEO Martin Hoffmeir with his equipment
ThermoNox eradicates tobacco pests by raising the temperature.
By Stefanie Rossel
When it comes to cured tobacco, “Don’t let the bugs bite” gets a whole new meaning. Avoiding infestation of the valuable raw material with cigarette beetle (Lasioderma serricorne) and tobacco moth (Ephestia elutella) during storage, manufacture and distribution remains a challenge. The worldwide annual loss of stored tobacco is estimated at between $400 million and $800 million.
The insects are prolific. In a tobacco bale, the female cigarette beetle can produce up to 32 billion descendants per year. They thrive in warm and humid warehouse environments in which the larvae feed on dried tobacco, pressed lamina or cut rag. By contaminating the product with their excretions, they make it unusable. The creatures are notoriously difficult to eliminate: Equipped with a special breathing system, cigarette beetles can survive a long time without gas exchange and with extremely little oxygen. In each of their lifecycles—beetle, egg, larvae, pupae, cocoons—the bugs adapt to their environment for survival.
But even these survival artists have a weak spot, and this is where ThermoNox comes in. The Bavarian family-owned company has developed a patented low-heat treatment method of the same name, which makes use of the fact that insects, including adults, larvae and eggs, cannot survive temperatures of 46 degrees Celsius (115 degrees Fahrenheit).
The process is similar to that of frying an egg.
Unlike humans, insects can’t control their body temperature. When exposed to that heat for some time, the proteins in the vermin’s body will irreversibly “denature”—they coagulate and become hard and inactive. The process is similar to that of frying an egg.
Designed for eradicating pests from empty rooms and manufacturing lines, the system works with strategically placed electrical ovens supported by special fans. By recirculation, they heat the ambient air to 120 degrees Fahrenheit for 15 hours to 30 hours. The lethal temperature is then maintained for 10 hours to 25 hours. “Machinery must be unplugged and free from product as we work with a gentle but defined heat to avoid any damage on the equipment,” says Martin Hofmeir, ThermoNox’ CEO. “Our goal is to reach every little corner and hiding place of all insect development stages.”

Using the ThermoNox system, cigarette manufacturers isolate infested machines with simple foil during treatment.
Accepted standard
Thermal disinfestation is one of four pest control standards approved by Coresta. Tobacco fumigation with phosphine gas, which has been employed for decades, is still the most used method, requiring low initial investment and involving low long-term cost. As the complete warehouse can be sealed for fumigation, the process allows for high-volume treatment. If protocols are followed, it leaves no chemical residues after the treatment. However, because the treatment isn’t always applied properly, increasing resistance against phosphine among cigarette beetles has been observed worldwide.
Another accepted standard is controlled atmosphere (CA), a relatively new method to the tobacco industry. The process consists of a specially constructed, gastight chamber in which a commodity is treated in an artificially engineered atmosphere. In the case of infested tobacco, it’s a low-oxygen treatment in which the oxygen level in the chamber is reduced to below 0.5 percent to ensure a 100 percent mortality rate in all life stages of the insects. While involving initial investment to set up the gastight chamber, it can treat all types of leaf tobacco without affecting taste and color. It’s unsuitable for high-volume treatment, however. To make CA effective, procedures need to be strictly followed.
A third, but rarely used, process is freezing the tobacco to below 20 degrees Celsius. While efficient, the technology is expensive and not suitable for handling the high volumes common to cigarette production. It is therefore presently used only to treat high-value cigar leaves.
External requirements for thermal disinfestation are less demanding. Cigarette production floors are separate rooms, hence factors such as the outside temperature and the climate zone in which a factory is located play no role. Because the tobacco industry works with batches, individual cigarette-making lines are often separated. This means a simple foil can be used to enclose an infested machine and place the ThermoNox system around it. “Thus, we can provide a comparatively fast treatment on the spot,” Hofmeir points out. For ThermoNox to treat an entire room, building or factory floor, it is typically sufficient to simply shut off the ventilation system and close all doors and windows. This is a considerable advantage over tobacco infestation control systems, such as phosphine fumigation or controlled atmosphere, which require hermetically sealed rooms and require significant preparations.
But then, the two latter procedures are used exclusively to treat stored product—an application where thermal disinfestation, being a physical procedure, reaches its natural limits. “Due to their insulating effect, tobacco bales cannot be disinfested with heat,” explains Hofmeir. “By contrast, phosphine fumigation and controlled atmosphere are quite sensitive in use, and you cannot employ them in machinery disinfestation. Phosphine will affect non-ferrous metals, which is a huge disadvantage if you think of expensive, high-tech tobacco machinery. In the tobacco sector, we see the unbeatable strength of our process in the treatment of empty rooms and manufacturing lines. ThermoNox is the only thermal heat infestation control system that has been officially endorsed by German original equipment manufacturer Hauni for its machines.”

ThermoNox has franchised its technology to partners worldwide and carried out disinfetions is 45 markets.
Reliability
The fact that ThermoNox is such a well-known name in the tobacco industry is due to coincidence rather than marketing. Hofmeir’s father developed the system in the early 1990s to combat pests, such as flour and rice beetles, in the family’s grain mill. The method soon became popular with the hospitality industry where it helped fight bed bugs and other insects. In 2007, British American Tobacco approached the Bavarian company, looking for a disinfestation solution for its German cigarette factory in Bayreuth. Since then, the ThermoNox system has been used by all leading tobacco companies.
Preventing reinfestation after successful disinfestation requires a comprehensive integrated pest management system that incorporates all parts of the upstream production process, according to Hofmeir. “This includes meticulous monitoring of the raw material as well as keeping all areas of production and machinery pest-free. Additionally, strict spatial separation of raw material, intermediate and finished products is necessary, preferably with a one-way system and locks. Pest control actually is the last method of choice in IPM.”
The tobacco sector, he adds, is characterized by good pest monitoring in its manufacturing lines. The raw material is also carefully controlled and treated on its various paths through the supply chain. “Since we securely kill off all development stages of tobacco pests with our method, disinfestation intervals are generally longer than with fumigation.”
In recent years, Hofmeir has observed a globally growing trend toward sustainability and away from toxin use across all industries. “This awareness starts with the consumer and moves backwards through all supply chains,” he says. “But apart from meeting this trend, our method simply is the most successful in its area of application, which is a win-win for all stakeholders. The increasing resistances against various chemical substances accelerate the switch to thermal disinfestation even more.”
The company has franchised its technology to partners around the world and has successfully carried out disinfestations in 45 markets and all sorts of industries. Hofmeir emphasizes that his company aims for moderate growth because it refuses to compromise quality of execution. “In the end, we will help every customer who needs our help,” he explains. “Asia, of course, is a huge market with a lot of potential. This is true for the tobacco sector as well as for other industries.”
ThermoNox has also felt the changes in the industry, including the shift of tobacco production from stagnating Western markets to more promising countries in Asia and elsewhere. “Our main markets, however, are the food sector, followed by the hospitality industry. Hence developments in the tobacco industry don’t hit us as hard as, for instance, the almost 100 percent decline in the tourism sector caused by the Covid-19 pandemic, which meant a massive decrease in orders in bed bug disinfestation.”
Despite such challenges, Hofmeir remains optimistic. “As a family-owned business with franchise partners, we have a different approach than large corporations that have to meet shareholder expectations. As a company, we continuously develop further with the challenges of our customers. This way, we won two new industries as our customers in recent years. Hence if one door closes a little, another one will open.”
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.

June 1, 2021
What’s in a Bottle?

Photo: Сергей Лабутин
A look at e-liquid bottling and packaging regulations
By Marissa Dean
Like anything in the nicotine industry, bottling and packaging are changing as the U.S. Food and Drug Administration introduces more regulations—PMTAs, testing requirements, labeling restrictions, etc. Being curious what regulations are in place for bottling and e-liquid packaging specifically, I turned to the U.S. Consumer Product Safety Commission (CPSC) website and found this: “The U.S. Consumer Product Safety Commission is the independent federal agency responsible for enforcing a key provision of the Child Nicotine Poisoning Prevention Act of 2015 (CNPPA). … That law requires any nicotine provided in a liquid nicotine container sold, offered for sale, manufactured for sale, distributed in commerce or imported into the United States to be in ‘special packaging’ as defined by the Poison Prevention Packaging Act (PPPA). This packaging, in layman’s terms, must be designed to prevent children from accidentally accessing and ingesting liquid nicotine and must restrict the flow of liquid nicotine under specific conditions.”
Child-proofing e-liquid bottles makes sense. But are there other regulations? I hit a wall in my research here. Could bottles be made out of anything? Did labels and packaging have to have warnings on them? I went down the rabbit hole of bottling websites, anything from manufacturers to wholesalers. The most common theme between them was the conversation of glass bottles versus plastic bottles.
Glass is the obvious environmentally friendly option, but it has more potential for breakage and injury due to breakage. Plus there’s the added question of how to make them flow-restrictive to meet CPSC regulations. Plastic bottles are made out of different polyethylenes—polyethylene terephthalate, low-density polyethylene and high-density polyethylene. Plastic is not friendly to the environment, taking decades to break down, and even then, only breaking down into microplastics.
Recycling helps curb the problem, but many vapor companies lack fruitful recycling programs, if they have them at all. Bidi Vapor offers one for its Bidi Sticks, called Bidi Cares, but as far as bottles are concerned, it doesn’t seem like there are any specific programs outside of traditional city/county recycling programs.
Going further down the rabbit hole of packaging regulations, I found myself jumping from source to source throughout the vapor community, getting similar responses: “I’m not the right person to answer your questions, but try this person.” Eventually, I reached Azim Chowdhury of Keller and Heckman.
Chowdhury is a partner at Keller and Heckman, a law firm that specializes in regulatory law, including FDA, CPSC and packaging regulations in particular, and represents companies in the electronic nicotine-delivery system (ENDS) space. As such, he’s well versed in e-liquid packaging regulations. He told me that there are two federal agencies to look to: the CPSC and the FDA. Already having seen the CPSC regulations, I was curious what the FDA had to say.
Simply put, the FDA regulations for e-liquid packaging lie within the Family Smoking Prevention and Tobacco Control Act (TCA), the FDA Deeming Rule and premarket tobacco product application (PMTA) requirements.
The TCA “defines ‘tobacco product’ very broadly, in pertinent part, to include anything made or derived from tobacco intended for human consumption, including the components, parts and accessories of the product,” Chowdhury wrote in an email. The Deeming Rule extended the FDA’s tobacco authorities to cover e-cigarettes, e-liquids, pipe tobacco, hookah tobacco, cigars, novel and future tobacco products, among others. “Now, components and parts of newly deemed products are subject to FDA’s tobacco product authorities. With respect to e-liquid packaging, FDA has indicated that the ‘container closure system’ for e-liquids—the materials expected to come into contact with the e-liquid, such as the bottle, cap and dropper—would likely be considered a ‘component and part’ of the e-liquid, and, therefore, subject to regulation as a tobacco product because such materials are intended or reasonably expected to affect or alter the performance, composition, constituents or characteristics of the product.”
Accordingly, e-liquid manufacturers must provide detailed information with their PMTAs on the bottle/container closure system to demonstrate that the e-liquid, as packaged, is appropriate for the protection of public health, according to Chowdhury. “For example, in PMTA deficiency letters sent to e-liquid companies, FDA is requesting detailed information on the components of the container closure system (e.g., e-liquid bottle, cap, dropper). FDA has indicated that it is not sufficient to merely identify the components of the container closure system but wants applicants to completely characterize and specify the materials used in such components. In other words, FDA is requesting compositional details that will likely need to be obtained from the bottle supplier (and can be provided to FDA via confidential Tobacco Product Master Files).”
In 2019, the CPSC added the “flow restriction” requirement to its rule, stating that the 2015 law (child-resistant packaging) always intended to capture flow restriction. The CPSC “issued notices of violations to numerous e-liquid companies alleging that e-liquid bottles (specifically glass bottles) without flow restrictors rendered the e-liquid a ‘misbranded hazardous substance’ pursuant to section 2(p) of the Federal Hazardous Substances Act (FHSA),” according to the Keller and Heckman blog, The Continuum of Risk. “CPSC ordered these companies to initiate a number of ‘corrective actions,’ including to immediately stop sale and distribution, notify all known retailers and consumers and destroy and dispose of returned units and any remaining inventory.”
Because of the CPSC change, the agency issued hundreds of violation letters. Keller and Heckman sent a letter to the CPSC on behalf of a number of state and national vapor trade associations, pointing out that making the necessary bottling changes to meet CPSC requirements would run afoul of FDA’s prohibition on modifying currently marketed products without FDA authorization. The FDA, in the end, decided not to enforce PMTA change regulations for flow restriction modifications, encompassed in the “Compliance Policy for Limited Modifications to Certain Marketed Tobacco Products.” The guidance states that “this compliance policy provides that FDA does not intend to enforce violations of the premarket review requirements against such modified products [liquid nicotine products modified to comply with the Child Nicotine Poisoning Prevention Act of 2015 flow restrictor requirements and battery-operated tobacco products modified to comply with UL 8139] on the basis of the modifications described in this guidance.”

Fluid Certify has developed patent-pending technology to help address the glass bottle flow restriction issue.
The industry tried to comply as best as possible; many premium e-liquid products that had previously been in glass bottles were switched to plastic bottles because there were no flow restriction capabilities in glass bottles. Glass bottles typically use droppers, whereas plastic bottles allow for squeezing. However, one innovative company in this space, Fluid Certify, has developed patent-pending technology to help address the glass bottle flow restriction issue.
Fluid Certify was founded by Cole McDonald, who also founded McDonald Vapor Co., an e-liquid manufacturer. In 2020, Cole passed away in a tragic climbing accident, and his mother, Lola McDonald, has kept the business going. Before Cole’s passing, he created flow restriction technology for glass bottles. Cole’s e-liquid products were packaged in unique glass bottles, and when the CPSC came out with its guidance, he conceived of his patent-pending technology to allow himself and others to maintain a level of excellence and offer alternatives to more generic plastic bottles.
The material used in Fluid Certify’s glass bottle flow restrictors is FDA food grade and offers flexibility and strength. It uses vacuum pressure and gravity to allow for repeated, uninterrupted use of a pipette. While the company is not currently mass producing the technology, it is not out of the question, according to Lola.
“Cole had a passion for the industry … he had no excuses for failure or blame—he found solutions,” Lola said of her son. His creativity and inclination for inventing opened the door to potentially “change things for the better” as he hoped to do. The company’s website, www.fluid-dynamic.com, offers more information on how to access the technology.
So what about the labels? While e-liquid labels are required to have basic information (name and place of business, amount of liquid contained, a nicotine addiction warning, etc.), the most critical FDA requirement is that they not appeal to youth. This is a broad requirement, and many companies received warning letters for products that mimicked kids’ foods, such as candy and juice. “My advice to clients is to keep their labels as simple as possible, keep it as mature as possible, and don’t use too many colors or graphics kids would enjoy,” said Chowdhury. The industry is “very subjective and competitive,” he added.
E-liquid packaging requirements are many, though it takes some digging to find them and guidance to navigate the nuance. With the growth and change in this industry, it will be interesting to see what comes next for e-liquid bottles and packaging.
Marissa Dean joined Tobacco Reporter in the summer of 2018 as a copy editor.Since that time, she has taken on additional responsibilities, including feature writing.Her skills span the publishing industry from layout and design to copy editing to content creation.

June 1, 2021
RJR and ITG Resolve Texas Payments Dispute

Photo: Alex
R.J. Reynolds Tobacco Co. and ITG Brands have reached a financial settlement with the state of Texas that resolves the question of responsibility for annual Master Settlement Agreement-type payments on four traditional cigarette brands, reports the Winston-Salem Journal.
ITG has accepted all payment obligations to the Texas settlement agreement for the Kool, Maverick, Salem and Winston brands.
The dispute stems from the 2014 purchase by Reynolds American of Lorillard. To obtain federal regulatory approval for the deal, RJR and Lorillard sold the four brands to ITG’s parent company, Imperial Brands.
After the sale, a dispute broke out about which company was responsible for settlement payments on the brands.
The MSA was a 1998 agreement in which tobacco companies settled litigation with state attorneys general over the cost of treating sick smokers. Several states, including Texas, made their own deals with tobacco companies.
In December 2020, the Florida Supreme Court declined to hear an appeal by RJR in a dispute over the four brands, leaving responsibility for the MSA payments with Reynolds.
The four ITG brands combined currently represent about 7.5 percent of the U.S. market share for traditional cigarettes.
May 31, 2021
Study: 1.1 billion Smokers in 2019
Photo: vchalup
The number of smokers worldwide has increased to 1.1 billion in 2019, with tobacco smoking causing 7.7 million deaths, according to three new studies published by the Global Burden of Disease collaboration in The Lancet and The Lancet Public Health. The studies were led by the Institute for Health Metrics and Evaluation and funded by Bloomberg Philanthropies and the Bill and Melinda Gates Foundation.
Using data from 3,625 nationally representative surveys, the studies provide global estimates on smoking prevalence in 204 countries in men and women aged 15 and over, including age of initiation, associated diseases and risks among current and former smokers as well as the first analysis of global trends in chewing tobacco use.
Published ahead of World No Tobacco Day on May 31, the authors called on all countries to urgently adopt and enforce a comprehensive package of evidence-based policies to reduce the prevalence of tobacco use and prevent initiation, particularly among adolescents and young adults.
“Smoking is a major risk factor that threatens the health of people worldwide, but tobacco control is woefully insufficient in many countries around the world,” said says Emmanuela Gakidou, senior author, Institute for Health Metrics and Evaluation, University of Seattle, Washington, USA, in a press note.
“Persistently high smoking prevalence among young people in many countries, along with the expansion of new tobacco and nicotine products, highlight an urgent need to double down on tobacco control. If a person does not become a regular smoker by age 25, they are very unlikely to become a smoker. This presents a critical window of opportunity for interventions that can prevent young people from starting smoking and improve their health for the rest of their lives.”
Since 1990, global smoking prevalence among men decreased by 27.5 percent and by 37.7 percent among women. However, 20 countries saw significant increases in prevalence among men, and 12 saw significant increases among women.
In half of countries, reductions in prevalence have not kept pace with population growth, and the number of current smokers has increased. The 10 countries with the largest number of tobacco smokers in 2019, together comprising nearly two-thirds of the global tobacco-smoking population, are China, India, Indonesia, the U.S., Russia, Bangladesh, Japan, Turkey, Vietnam and the Philippines. One in three current tobacco smokers (341 million) live in China.
Persistently high smoking prevalence among young people in many countries, along with the expansion of new tobacco and nicotine products, highlight an urgent need to double down on tobacco control.
Emmanuela Gakidou, senior author
7.4 trillion cigarette equivalents of tobacco (combining smoked tobacco products include manufactured cigarettes, hand-rolled cigarettes, cigars, cigarillos, pipes, shisha and regional products such as bidis and kreteks) were consumed in 2019, amounting to 20.3 billion each day worldwide. Countries with the highest consumption per person were mostly in Europe. Globally, one in three male and one in five female smokers consume 20 or more cigarette equivalents per day.
In 2019, there were an estimated 155 million smokers aged between 15 and 24—equivalent to 20.1 percent of young men and 5 percent of young women globally.
Two-thirds (65.5 percent) of all current smokers began smoking by age 20, and 89 percent of smokers began by age 25.
In 12 countries and territories in 2019, more than one in three young people were current smokers, including Bulgaria, Croatia, Latvia, France, Chile, Turkey and Greenland, as well as five Pacific islands.
Globally, smoking prevalence among young people decreased between 1990 and 2019 among both young men (-32.9 percent) and young women (-37.6 percent). Progress varied across countries, with 81 achieving a significant decrease in prevalence among young people. More than half of countries experienced no change.
In many countries, progress in reducing the prevalence of smoking has not kept pace with population increases, resulting in significant increases in the number of young smokers. India, Egypt and Indonesia had the largest absolute increases in number of young male smokers. Turkey, Jordan and Zambia had the largest increases in number of young female smokers.
Globally, the average age at which individuals began smoking regularly is 19. The youngest average ages of initiation were observed in Europe and the Americas—with the youngest average age of initiation in Denmark (16.4). The oldest average ages of initiation were seen in East and South Asia and sub-Saharan Africa—with the oldest average age of initiation in Togo (22.5 years).
Globally, 273.9 million people used chewing tobacco in 2019, equivalent to age-adjusted prevalence of 6.5 percent among men and nearly 3 percent among women over the age of 15. Most people (228.2 million; 83.3 percent) who used chewing tobacco in 2019 resided in the South Asia region. The largest population of people who use chewing tobacco are in India with 185.8 million users, corresponding to 68 percent of all chewing tobacco users globally. Bangladesh, Nepal and Bhutan also had very high prevalence of chewing tobacco use.
In many countries, progress in reducing the prevalence of smoking has not kept pace with population increases.
The authors of the studies lamented the lack of progress in tobacco control among signatories of the World Health Organization’s Framework Convention on Tobacco Control (FCTC).
Since 2005, the FCTC has been ratified by 182 parties, but as of 2018, only 62 countries had comprehensive smoke-free policies, according to the studies. Twenty-three offered the full range of cessation support services; 91 mandated pictorial health warnings; 48 had comprehensive advertising, promotion and sponsorship bans; and 38 had the recommended level of tobacco taxation.
Measures to decrease the affordability of cigarettes through taxation have been lagging too, according to the authors.
Between 2008 and 2018, the affordability of cigarettes decreased in only 33 percent of low-income countries compared with 38 percent in middle-income countries and 72 percent of high-income countries. Low-income and middle-income countries face the additional challenge of population growth expanding their smoking population. Despite this, only one low-income country, Madagascar, taxes tobacco at the rate recommended by the WHO.
Links to the studies:
Global trends in smoking tobacco
Youth initiation
Chewing tobacco
May 31, 2021
BAT: Vuse First Global Carbon Neutral Vape
Photo: BAT
Vuse has become the first global carbon neutral vape brand, according to BAT.
Vuse’s carbon neutrality has been delivered through carbon offset through reforestation projects. This includes a project in Uruguay to plant trees across 21,298 ha, where intensive cattle grazing has eroded soil and degraded land. As well as removing carbon dioxide and delivering better soil quality and biodiversity, the project will also result in increased availability and quality of employment opportunities, BAT noted.
The carbon neutrality of Vuse has been independently validated by Vertis based on product life cycle assessment data provided by an independent third party.
“Vuse becoming the first global carbon neutral vaping brand is a significant milestone,” said Kingsley Wheaton, chief marketing officer at BAT, in a statement. “It is testimony to BAT’s deep and long-standing commitment to being a responsible business and reducing our impact on the environment.”

Vuse becoming the first global carbon neutral vaping brand is testimony to BAT’s deep and long-standing commitment to being a responsible business and reducing our impact on the environment.”
Kingsley Wheaton, chief marketing officer, BAT
According to BAT, Vuse’s carbon neutrality status is part of a bigger ambition to become an environmentally sustainable vape brand with initiatives including:
Implementing a global device and pod collection scheme, with approximately 200,000 pods collected since the start of the pilot in 2020
Cutting single use plastics from packaging, which has saved 100 tons of plastic or the equivalent of 4 million plastic bottles in 2020
Transitioning from air to sea freight through changes to the distribution chain; Vuse aims to have 80 percent of international shipments transported by sea by the end of 2022
BAT says it is also reducing its carbon footprint by improving the energy efficiency of factories by upgrading to more efficient and lower impact equipment and by increasing the use of renewable energy through renewable energy purchases and on-site energy generation.
Today’s announcement by BAT coincides with the opening of the 100th Vuse Inspiration Store. Vuse Inspiration Stores are now operating in the U.K., Canada, Poland, Germany, South Africa and the U.S.
May 28, 2021
Florida Supreme Court Asked to Revisit Engle

Photo: Felix Mizioznikov
The Florida Supreme Court will hear a case on June 2 that could make it harder to successfully sue cigarette makers, reports the Tampa Bay Times.
While the case focuses on an issue involving allegations that the tobacco industry conspired to conceal information about smoking, R.J. Reynolds Tobacco Co. and Philip Morris USA want to use the case to convince justices to reconsider the underlying 2006 decision that spurred roughly 8,000 “Engle progeny” cases, many of which are still tied up in court.
In 2019, a Florida appeals court overturned a $6.4 million award to the estate of John C. Price, who started smoking at age 12 and died at age 74 of chronic obstructive pulmonary disease. The appeals court objected to the way in which the jury had been instructed to weigh the evidence and ordered a new trial.
The ruling centered on a claim of conspiracy to conceal information about the dangers of smoking. The appeals court agree with R.J. Reynolds that the estate needed to show that Price relied to his “detriment” on a statement that concealed or omitted information.
While the outcome of the conspiracy issue could affect numerous Engle progeny cases, R.J. Reynolds and Philip Morris also have asked the Supreme Court to go beyond the appeals court ruling and revisit the 2006 decision. They have been backed by the Florida Justice Reform Institute, a group that lobbies the legislature and becomes involved in court cases to try to limit lawsuits.
The tobacco companies’ arguments come after a significant change at the Supreme Court since January 2019, when three liberal-leaning justices retired and were replaced by justices appointed by Republican Governor Ron DeSantis.
May 28, 2021
KT&G Distributes Funds to its Tobacco Growers

Kim Sam-soo, chairman of the Leaf Tobacco Production Cooperative (left), and Shin Song-ho, head of KT&G’s raw materials division (right), at the delivery ceremony in Daejeon on May 25
(Photo: KT&G)
KT&G delivered KRW400 million ($358,338) in welfare-promotion funds to continue its co-prosperity program with domestic leaf tobacco farmers. The contribution will be used to cover medical examination costs for 960 elderly leaf tobacco farmers and to provide scholarships to 85 children from farming families.
According to KT&G, farmers are struggling to secure labor due to the continued decline in the rural population and the Covid-19 crisis. Leaf tobacco cultivation is labor intensive due to difficulties in mechanizing, and tobacco farmers are generally older than other farmers, requiring greater attention to healthcare.
KT&G has been providing welfare support to leaf tobacco farmers annually since 2013. Thus far this year, the company has donated KRW2.85 billion. Nearly 8,000 farmers have received medical checkup fees and scholarships for their children.
As part of its ESG management, KT&G has initiated various projects to help its farmers. KT&G says it is the only domestic tobacco company that purchases its farmers’ entire harvests to protect their livelihoods. In addition, each year, company employees volunteer to help farmers with leaf tobacco transplantation and harvest. Also, KT&G pays 30 percent of each farmer’s sales in cash up front.
“We are continuing the project to support farmers’ welfare to solve their difficulties and provide practical help,” said Shin Song-ho, head of KT&G’s raw materials division, in a statement. “I hope this support will help farmers improve their health and economic conditions. We will continue to give back to society.”
May 28, 2021
Foundation Urges Smokers to Quit/Switch
Photo: auremar
Ahead of World No Tobacco Day (WNTD) on May 31, the Foundation for a Smoke-Free World (FSFW) is urging smokers to quit or switch to harm-reduction products.
The fact that more than 1 billion people still smoke and 8 million annual deaths are attributed to tobacco use proves that health policies and actions have been inadequate, according to the FSFW.
“The challenges that smokers face when trying to quit have been largely ignored,” the foundation wrote in a press note. “The calls by the World Health Organization (WHO) for smokers to quit using fairly ineffective interventions suggest we need new approaches. Technology innovation, in the form of harm reduction, offers a new way forward for smokers that complements classic cessation efforts.”
“Since my involvement in the first WNTD in 1988, we have focused narrowly on cessation, often without engaging smokers in developing ways they feel work best. Too many efforts have failed because they have not addressed the fact that while many smokers want to quit, they are not being presented with options that appeal to them,” said Derek Yach, president of the FSFW.
“There is growing evidence that a range of harm reduction products, including e-cigarettes (vapes), snus, nicotine pouches and heated-tobacco products, can help smokers quit or at least substantially reduce their harmful exposure to combustible cigarettes. The WHO, supported by heavily funded Bloomberg Philanthropies grantees, continues to blindly ignore scientific evidence, vilifying these products instead of promoting their use to save lives.”
The FSFW cites a study published this week in The Lancet in which the authors say the current level of tobacco control policy implementation is insufficient in many countries around the world and that evidence-based policies are needed to reduce smoking. According to the foundation, the study ignores the role for tobacco harm-reduction (THR) products as part of tobacco control policy.
“This study was funded by Bloomberg Philanthropies, which does not support the use of THR products as cessation aides,” said Yach. “This is likely one reason why they were not included in the report. Denying the value and benefits of THR products is irresponsible and blatantly discounts the research showing they can help smokers quit.”

There is growing evidence that a range of harm reduction products, including e-cigarettes (vapes), snus, nicotine pouches and heated-tobacco products, can help smokers quit or at least substantially reduce their harmful exposure to combustible cigarettes.
Derek Yach, president, FSFW
By contrast, The U.K. Royal College of Physicians (RCP) believes THR products should play a prominent role in tobacco control. In a recently released report, “Smoking and health 2021: A coming age for tobacco control?,” the RCP estimates that if the harm-reduction policies it advocated for in 1962 were adopted, smoking would have ended in the United Kingdom by now. The new report calls for doctors to play a more active role in helping their patients who smoke. “We argue that responsibility for treating smokers lies with the clinician who sees them and that our NHS [the U.K. National Health Service] should be delivering default, opt-out, systematic interventions for all smokers at the point of service contact,” the report’s authors write. The RCP also recommends that the U.K. government invest in media campaigns to urge smokers to switch from tobacco to e-cigarettes, which are less harmful. Governments and doctors worldwide should heed their advice.
A new report by BOTEC Analysis, a public policy research and consulting firm, finds that the availability of regulated alternative nicotine-delivery systems (ANDS) like e-cigarettes and heated-tobacco products (HTPs), combined with traditional tobacco control efforts, such as tobacco taxes, smoke-free laws and cessation services, have helped to lower smoking rates in several countries. Titled “Investigating the drivers of smoking cessation: A role of alternative nicotine delivery systems?,” the report examines the policies in five countries that have long been considered international leaders in tobacco control: The United Kingdom, Canada, Australia, South Korea and Japan.
According to the FSFW, BOTEC’s key findings presented interesting results per country, including:
United Kingdom: A leader in tobacco control, the country has proactively helped smokers switch to e-cigarettes, which have been shown to be 95 percent safer than combustible cigarettes. While the country has some of the highest tobacco prices in the world, the government has chosen not to tax e-cigarettes as tobacco products, making them less costly. Access to regulated e-cigarettes appears to also support smoking cessation services.
Canada: Following the introduction of e-cigarettes in 2018, there has been a significant decline in conventional tobacco sales. As stringent regulations and higher prices apply more to traditional cigarettes than e-cigarettes, smoking rates and tobacco purchases have collapsed, especially among young Canadians. Still, the country may be poised to reverse these successes with proposed regulations that would implement a new tax on e-cigarettes and cap the nicotine content of e-liquids.
Australia: The country succeeded in driving cessation with a combination of health warnings, tax increases and effective publicity campaigns. The government has implemented de-facto bans on harm reduction products, but many Australians continue to use smuggled and unregulated e-cigarettes, reporting a desire to quit or reduce smoking as a primary motivation.
South Korea: The country has more than 250 public health centers that provide comprehensive clinical services, including counseling, prescription medication, nicotine-replacement therapy and text/email follow-ups. Over six months, more than 800,000 adult male smokers used these clinics, with an estimated 46.8 percent quit rate. Despite the South Korean government’s disapproving stance toward ANDS, both e-cigarettes and HTPs appear to be aiding cessation.
Japan: Although Japan has imposed an excise tax on cigarettes and banned e-cigarettes containing nicotine, HTPs are widely available and increasingly popular. Moreover, the uptake of HTPs appears to be causally associated with a reduction in demand for combustible cigarettes. However, a lack of regulatory distinction between HTPs and combustible cigarettes appears to limit the numbers of smokers who shift to exclusive HTP use, so their effect on cessation may be muted, thus reducing HTPs’ potential to aid smoking cessation.
BOTEC Analysis is one of several FSFW foundation grantees that are spearheading research to uncover new solutions to combat this global health epidemic. The FSFW collaborates with other nonprofit, advocacy and government organizations to advance smoking cessation and harm reduction science. The FSFW also supports the development of alternative products and methods that may reduce a smoker’s health risks and help them to stop smoking entirely.
“In light of the billion smokers that remain, one may assume that the world has made little progress since the first WNTD three decades ago,” the FSFW concluded in its press note. “Yet, from a scientific and technological perspective, we have seen profound change. As a result of transformational research and development, we now have harm-reduction products that could end death and disease from tobacco. Still, innovation translates into saved lives only when smokers have access to the full range of cessation and harm reduction options. Thus, in the same way that the foundation calls on smokers to quit, it also calls on policymakers and physicians to embrace the tools that will help them do so.”
May 28, 2021
Court: Vuse Infringes on Fuma Patents

Photo: R.J. Reynolds Vapor Co.
R.J. Reynolds (RJR) Vapor Co.’s Vuse Solo and Ciro e-cigarettes infringe patents owned by Fuma International, a federal court in North Carolina ruled, according to Reuters.
Fuma sued RJR in 2019 for infringing two of its patents that outline types of e-cigarettes made of a cartridge and power source.
U.S. District Judge Catherine Eagles found that the products included two of the disputed elements and infringed both patents but that the question of whether they included the third element should go to trial.
The Vuse Solo has one of the patent’s “electrically conductive portion” that couples the cartridge to the power source, and the Vuse Ciro has a type of airflow passageway featured in both patents, Eagles said.
However, the third disputed element—whether the Solo has the “electrically conductive threaded portion” from a Fuma patent—will be decided at trial. RJR provided enough evidence to show that the relevant part of its device may not be “threaded” under the patent’s definition, according to Eagles.
RJR spokesperson Kaelan Hollon told Reuters that the company “looks forward to proving at trial that the Fuma patents are invalid” and that Solo doesn’t infringe the part of the patent still at issue.
Vuse is one of the most popular e-cigarette brands in the United States.
Earlier this month, a judge ruled that Philip Morris International’s IQOS tobacco-heating device infringes two Vuse Vibe and Vuse Solo patents. That case will likely be reviewed by the full International Trade Commission.
May 27, 2021
Universal Corp. Reports Strong Fiscal 2021

Photo: Universal Corp.
Universal Corp. reported sales and other operating revenue of $1.98 billion in the fiscal year that ended March 31, 2021, up 4 percent over the amount reported in the previous year. Operating income was up 17 percent to $147.8 million while adjusted operating income increased 22 percent to $172.9 million. Gross profit margin improved 80 base points to 19.5 percent.
Tobacco operations sales and other operating revenues were $1.84 billion in fiscal year 2021 compared with $1.89 billion in 2020. Tobacco operations operating income grew 15 percent to $168.8 million.
“I am pleased to report that our net income and diluted earnings per share, and our non-GAAP adjusted operating income for fiscal year 2021, are all up over 20 percent compared to fiscal year 2020,” said George C. Freeman III, chairman, president and CEO of Universal, in a statement.
“Strong leaf tobacco shipments in the second half of fiscal year 2021, the addition of our plant-based ingredients acquisitions and favorable foreign currency comparisons all contributed to this improvement in our results.

I am especially proud that we were able to deliver these results in the midst of the Covid-19 pandemic.
George C. Freeman III, chairman, president and CEO, Universal
“I am especially proud that we were able to deliver these results in the midst of the Covid-19 pandemic and would like to thank our employees, growers, customers and other partners for their support, adaptability and hard work that made this a successful year.”
Leaf tobacco shipments, which started slowly in fiscal year 2021, accelerated in the second half of the fiscal year, according to Freeman. The company ended the year with leaf tobacco volumes that were just slightly below those in fiscal year 2020, in part due to some tobacco shipments that were delayed and will ship in fiscal year 2022.
“As we move into fiscal year 2022, we currently expect global supply for flue-cured leaf tobacco to be in line with anticipated demand and for burley leaf tobacco to be in a slight undersupply position,” said Freeman. “We are continuing to monitor freight costs as the Covid-19 pandemic disrupted shipping patterns, which has resulted in cost increases due to limited container availability.”
May 27, 2021