Author: Marissa Dean

  • Quit for Good Signs THR Statement

    Quit for Good Signs THR Statement

    Lorenzo Mata Jr. | Photo: Quit for Good

    Quit for Good, a public health advocacy group based in the Philippines, has joined other scientific organizations and associations across the world in calling for the adoption of tobacco harm reduction (THR) to save smokers and help improve people’s lives.

    “We endorse the consensus statement of SCOHRE—the International Association on Smoking Control and Harm Reduction—to remind the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) Conference of the Parties of the growing support and scientific basis for THR strategies that it continues to ignore,” said Lorenzo Mata Jr., president of Quit for Good.

    “The THR approach, which the Philippines acknowledged when it approved the vape law in 2022, provides smokers with better options, such as smoke-free alternatives, when quitting is not achievable,” said Mata, a Filipino doctor.

    Quit For Good is one of the 14 scientific organizations on four continents that support the consensus statement of SCOHRE that the WHO FCTC should no longer ignore the evidence in support of THR. It is also one of the two organizations based in the Philippines that signed the statement, the other being the Harm Reduction Alliance of the Philippines (HARAP).

    SCOHRE, an international scientific association of independent experts who promote a new approach to smoking control policies, issued the statement as the WHO FCTC prepares to convene the 10th session of the Conference of the Parties (COP10) Nov. 20–25, 2023, in Panama.

    “Rather than viewing them [THR products] as a threat to public health, the WHO FCTC should look at them as tools that can help more than a billion smokers around the world quit smoking. It has been well documented that it is the smoke, and not nicotine, that causes serious diseases among smokers,” said Mata.

    Mata said the U.K. and Sweden models prove that harm reduction works. He said providing safer nicotine products to reduce harm for smokers is common sense as smokers are already offered nicotine-replacement therapy (NRT) to quit or reduce harm.

    “NRTs, however, are largely ineffective in making smokers quit. Why not give them highly successful and innovative products that are at least 95 percent less harmful than cigarettes?” said Mata, referring to smoke-free products such as vapes. “These products are much better than confining smokers to a lifetime of smoking without any viable alternatives. Other doctors should explore these options if they really care about their patients.”

    Mata said the COP10 meeting in Panama should focus on scientific evidence that there are safer nicotine products and that restrictive and prohibitionist policies that penalize smokers only lead them to continue smoking and suffer from the lack of better alternatives.

    The consensus statement of SCOHRE noted the mounting scientific evidence that THR strategies can contribute to reducing the detrimental effects of smoking and that switching to less harmful products will have a tremendously positive effect for many people who smoke cigarettes.

    “Healthcare and public health professionals need to continuously raise awareness to every person who smokes cigarettes and to the overall population about the adverse effects of smoking and that they can be also limited by tobacco harm reduction, i.e., with novel safer alternatives to cigarettes. We need to increase the knowledge that empowers people to pursue better health,” according to the consensus statement.

    Aside from Quit for Good and HARAP, other groups that supported the SCOHRE consensus statement are the European Medical Association, New Nicotine Alliance in Ireland, Platform for the Reduction of Harm due to Tobacco Consumption in Spain, Indonesian Tar Free Coalition (KABAR), DIRETA in Brazil, Tunisian Society of Tobaccology and Addictive Behaviors, Associazione Nazionale Consumatori Vaporizzatori Personali (ANPVU) in Italy, Densaulyk Harm Reduction Association in Kazakhstan, Polish Society of Public Health, New Nicotine Alliance in the U.K., UKVIA and the Hungarian Scientific Association for Harm Reduction and Environmental Diseases.

  • FDA Warns Nic Nac ‘Nicotine Mints’

    FDA Warns Nic Nac ‘Nicotine Mints’

    Image: FDA

    The U.S. Food and Drug Administration issued a warning letter to Nic Nac Naturals for the marketing of their unauthorized dissolvable nicotine products, which the company describes as “nicotine mints” and which resemble a pack of mints. These products are of particular concern because of their resemblance to popular candies and the potential to cause severe nicotine toxicity or even death if accidentally ingested by young children, according to the FDA.

    “FDA remains steadfast in our commitment to actively monitor the marketplace and to crack down on companies selling unlawful products, particularly those that can appeal to youth,” said Brian King, director of the FDA’s Center for Tobacco Products (CTP). “Our goal is to identify and prevent these emerging threats to our nation’s youth before they become mainstream.”

    The manufacturer markets these tobacco products in a variety of mint and fruit flavors, all of which come in two nicotine strengths (3 mg or 6 mg). The packaging states the products contain nontobacco nicotine. The FDA regulates tobacco products containing nicotine from any source, including nontobacco nicotine. Nic Nac Naturals does not have a marketing authorization order from the agency to sell or distribute these products in the U.S.

    One container of 15 of these mints can have as much as 90 mg of nicotine total. According to research, the FDA stated, ingesting 1 mg to 4 mg of nicotine could be toxic or severely toxic to a child under 6 years old, depending on body weight. This means ingesting one mint could be severely toxic to a child under 6 years old. Nicotine toxicity among youth of any age can lead to nausea, vomiting, abdominal pain, increased blood pressure and heart rate, seizures, respiratory failure, coma and even death. The FDA also stated that nicotine is highly addictive and exposure during adolescence can harm the developing brain.  

    “Today’s action is another example of our ongoing efforts against illegal nontobacco nicotine products,” said Ann Simoneau, director of the CTP’s Office of Compliance and Enforcement. “We remain unwavering in our use of compliance and enforcement resources to curb unlawful marketing of tobacco products, particularly those that youth could easily confuse with something that they consume regularly—like candy.”

    The company has 15 working days to respond to the FDA with steps they will take to correct and prevent future violations. Failure to respond and correct violations may result in addition FDA action, such as an injunction, seizure and/or civil money penalties.

  • Cyprus: One in Three Smokes

    Cyprus: One in Three Smokes

    Image: eyegelb

    About one-third of Cyprus residents smoke, according to statistics from Marc, a research company, reports The Cyprus Mail.

    Marc interviewed 801 households across Cyprus, finding that 30.1 percent of respondents are smokers. The research was done on behalf of Philip Morris Cyprus.

    The number of smokers last year was 31.3 percent.

    Though the number of smokers remains high, about 90 percent of respondents said they are concerned about the health effects of smoking, and 80 percent of smokers said their main motivation for quitting would be the impact quitting would have on their health and physical condition. Only 22 percent of smokers stated that they are fully informed about available alternatives, and 81 percent said information should be available to them.

  • Western Australia: New School Vaping Policies

    Western Australia: New School Vaping Policies

    Image: steheap

    The government of Western Australia (WA) has introduced new school behavior policies to prevent students from vaping.

    Students caught vaping will risk being unable to attend school events, such as balls, graduations and other extra-curricular activities. The new rules also include mandatory programs for students in years five to seven that teach them about the dangers of vaping; new teaching and learning resources for prevention education for students in years eight to 10; and a trial of vape detectors in up to 10 schools across the state.

    “The prevalence of vapes in our community is a serious issue,” said Tony Buti, WA’s education minister. “The biggest misunderstanding is they are harmless compared to cigarettes—this is not true—vapes are not safe, and they are contributing to a new generation of nicotine dependency.”

    It’s illegal in WA to sell e-cigarettes and nicotine vaping products to anyone without a doctor’s prescription. These devices are only allowed for smoking cessation purposes and must be obtained from a pharmacy.

    Youth often purchase vapes online, from retail stores or from friends and contacts, according to the WA Department of Education. More than 70 percent of participants in an October survey of over 3,000 individuals aged 12 to 18 found it easy for a young person to “get a vape,” and many respondents stated that the products are prolific, especially in schools. The survey was used in a report on vaping by Jacqueline McGowan-Jones, WA commissioner for children and young people.

  • Cigar Group Wants Better Justification for U.S. Flavor Rule

    Cigar Group Wants Better Justification for U.S. Flavor Rule

    Image: razoomanetu

    The Premium Cigar Association (PCA) testified before the White House Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) as part of the administration’s review of the U.S. Food and Drug Administration’s draft Final Rule “Tobacco Product Standard for Characterizing Flavors in Cigars.”

    PCA President Scott Regina provided several examples of the impact that the rule would have on specialty tobacco retail, emphasizing that the FDA had not conducted a proper small business impact analysis. The PCA also outlined how the rule would directly affect regulatory matters outside of the FDA’s jurisdiction, including law enforcement, international trade and foreign policy.

    “It’s questionable whether FDA has the authority to issue standards that result in a product ban, especially when they are acknowledging that the regulation does not address a specific risk,” said Regina in a statement.

    “Ultimately, we asked OIRA to consult with a host of affected federal agencies and to remit the draft Final Rule back to FDA for better justification of authority, cost-benefit analysis and small business impact,” said Scott Pearce, executive director of the PCA.

    The OIRA has scheduled meetings with additional stakeholders throughout the month as well as proponents of the characterizing flavor product standard for cigars.

    The PCA published a full list of recommendations on the draft Final Rule.

  • Ontario to Double Vaping Tax

    Ontario to Double Vaping Tax

    Image: JHVEPhoto

    Ontario, in partnership with Canada’s national government, will double the tax on all vaping products sold in the province.

    The federal/provincial tax partnership scheme that was announced in 2022 allows provinces to double the current federal vape tax and keep half the proceeds, according to Vaping360.

    The Canadian Vaping Association (CVA) urged the federal government to reconsider its proposal to impose an additional provincial levy, as this would effectively double the already substantial tax burden. “The CVA suggests a more equitable approach where the federal government shares the revenue generated by the current levy with the provinces,” the industry group wrote in a statement.

    “With the introduction of the excise tax, depending on product type, vape products are now almost as expensive as cigarettes despite the significant reduction in risk,” the statement says.

    The CVA cautioned that the increased tax may lead to more illicit trade. “Legal businesses will find it nearly impossible to compete with the unregulated market that remains largely unchecked. The consequence of such punitive taxation will be widespread business closures, significant job losses and an increase in criminal activity.”

    “The CVA encourages the province to leverage its negotiating influence with the federal government to establish a fair revenue-sharing framework for the existing tax revenue. Preserving the regulated market, rather than destroying it, will lead to higher tax revenues. The additional revenue generated can be used by the province to increase enforcement resources and support educational programs for youth,” said Darryl Tempest, government relations counsel to the CVA.                     

  • KT&G Joins Payment Integration Cooperative

    KT&G Joins Payment Integration Cooperative

    Image: Dzmitry

    KT&G has joined the payment integration cooperative, an initiative to help reduce the burden of raw material costs on small-sized and medium-sized partner companies.

    Before the system became legally established, KT&G already stipulated in purchase contracts that in the event of an increase in raw material prices compared to the contract period, it could proactively adjust the purchase contract amount to alleviate the burden on partner companies.

    To further reduce the burden, KT&G pays for its supplies monthly in cash and provides early payments before holidays. The company is also helping its contracted farmers save money through the dissemination of the “draft reduction device,” a fuel-saving tool for tobacco dryers.

    To promote the welfare of agricultural workers, the company has contributed KRW3.66 billion ($2.79 million) in health examination fees and scholarships since 2013.

    “The payment integration cooperative will enhance the competitiveness of partner companies, ultimately laying the foundation for a sustainable industrial ecosystem,” a KT&G representative said. “We will continue to expand the scope of social responsibility across the entire value chain in the future.”

  • BAT Appoints CFO

    BAT Appoints CFO

    Image: tonsnoei

    Soraya Benchikh has been appointed to the role of chief financial officer and executive director at BAT. She will join the boards from May 1, 2024, succeeding Javed Iqbal, who will continue to serve as interim finance director until April 30, 2024.

    Benchikh has been president of Europe at Diageo since January 2023, having joined Diageo in July 2020 as managing director for Northern Europe. Benchikh previously spent 20 years at BAT, where she served as president of BAT France, area director for East and Southern Africa and regional finance director for Europe. Earlier in her career, Benchikh worked in finance roles at General Electric and Gillette.

    “I am pleased to welcome Soraya as chief financial officer and to the board,” said BAT chair Luc Jobin in a statement. “She brings a wealth of leadership experience and commercial acumen from across both finance and commercial roles. Soraya’s excellent track record in different geographies and in-depth understanding of the sector make her ideally suited for the role.”

    “I am delighted to welcome Soraya to the management board as our new chief financial officer,” said BAT CEO Tadeu Marroco. “Her extensive senior leadership and financial experience from a range of international fast-moving consumer goods companies represents a great addition to our leadership team. I am grateful to Javed for his continued contribution as interim finance director in addition to his ongoing role as director, digital and information.

    “Following the recent appointment of Dr. Cora Koppe-Stahrenberg as chief people officer, Soraya’s appointment is also a further important step toward building a modern organization. I very much look forward to working with Soraya as we continue our transformation.”

    “I am excited to rejoin the leadership of BAT as chief financial officer and executive director and share their passion for the transformation strategy,” said Benchikh. “I am looking forward to working with my new colleagues, the leadership team, Tadeu and the board and leverage my recent experience within broader FMCG to provide an external lens and support their efforts to accelerate BAT’s strategy to build ‘A Better Tomorrow.’”

  • Tobacco Income Up at Vector

    Tobacco Income Up at Vector

    Image: Vadym

    Vector Group announced financial results for the three months and nine months ended Sept. 30, 2023.

    Consolidated revenues for the third quarter were $364.1 million, down 3.7 percent, or $13.9 million, compared to the prior year period.

    The tobacco segment wholesale market share declined to 5.3 percent from 5.7 percent in the prior year period, and retail market share increased to 5.9 percent from 5.7 percent in the prior year period.

    Montego wholesale market share increased to 3.5 percent from 2.8 percent in the prior year period, and retail market share increased to 3.8 percent from 2.8 percent in the prior year period.

    Operating income was $90.5 million, up 7.9 percent, or $6.6 million, compared to the prior year period.

    Tobacco segment operating income was $94.8 million, up 7.6 percent, or $6.7 million, compared to the prior year period.

    Adjusted EBITDA was $94.9 million, up 8.8 percent, or $7.7 million, compared to the prior year period. Tobacco Adjusted EBITDA was $96.3 million, up 7.4 percent, or $6.7 million, compared to the prior year period.

    Year-to-date consolidated revenues were $1.06 billion, down 1.2 percent, or $13.3 million, compared to the prior year period. Tobacco segment revenues were $1.06 billion, up 0.2 percent, or $2.6 million, compared to the prior year period. Tobacco segment wholesale and retail market share increased to 5.5 percent and 5.8 percent from 5.4 percent and 5.4 percent, respectively, in the prior year period.

    Year-to-date Montego wholesale market share increased to 3.4 percent from 2.4 percent in the prior year period, and retail market share increased to 3.6 percent from 2.4 percent in the prior year period. Operating income was $236.4 million, down 5.3 percent, or $13.3 million, compared to the prior year period. Tobacco segment operating income was $248.5 million, down 2.2 percent, or $5.5 million, compared to the prior year period. Adjusted EBITDA was $267.1 million, up 2.9 percent, or $7.6 million, compared to the prior year period. Tobacco adjusted EBITDA was $271.0 million, up 5.6 percent, or $14.4 million, compared to the prior year period.

    Tobacco segment wholesale and retail market share increased to 5.5 percent and 5.8 percent from 5.1 percent and 5.2 percent, respectively, in the last 12 months ended Sept. 30, 2022.

    Montego wholesale and retail market share increased to 3.3 percent and 3.5 percent from 2 percent and 2 percent, respectively, in the last 12 months ended Sept. 30, 2022.

    “We are proud that Montego grew to be the largest discount brand in the United States in the third quarter of 2023, demonstrating the strength of our strategy and the skillful execution by Liggett to offer the best value proposition in the U.S. cigarette industry,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “As Liggett continues to outperform the market, we remain focused on optimizing long-term profit and driving value for stockholders by effectively managing its volume, pricing and market share.”

  • A Taste of ‘Terroir’

    A Taste of ‘Terroir’

    Photos: CTS
    Photos: CTS

    With its origin-focused approach, CTS has become a successful niche player in the French RYO category.

    By Stefanie Rossel

    “Shrinking” is the first word that comes to mind when thinking about the French tobacco sector. According to Statista, French tobacco sales are expected to decline by almost 1 percent annually between 2023 and 2028. In 2022, the tobacco market in France experienced its strongest value decline in a decade.

    With the country’s last cigarette factory in Corsica closing this December, cigarette manufacture in France will come to an end. Due to the phaseout of EU tobacco subsidies in 2006, the area dedicated to tobacco cultivation in France has decreased as well—from 3,149 ha in 2016 to 1,205 ha in 2021.

    Sadly, the only part of the tobacco landscape that continues to flourish is the illicit cigarette trade. According to a KPMG study commissioned by Philip Morris International, illegal smokes represented 32 percent of the French tobacco market in 2022.

    However, this dark environment conceals some remarkable success stories.

    One of them has been written by Collaboration Traditab Santele (CTS), an alliance of Traditab, a company run by small tobacco producers in southwestern France, and Santele, a Flemish family-owned manufacturer of traditional Belgian rolling tobacco.

    Considering the pressures from increasing regulation, the two companies felt it made sense to join forces. Traditab provided the raw materials and tobacco cultivation knowledge; Santele contributed roll-your-own expertise and manufacturing facilities.

    Established in 2016, CTS today is a medium-sized enterprise headquartered in Belgium with offices in France and Spain that currently manufactures and markets four brands of RYO tobaccos, focusing on the concept of “terroir.” The French term is used to describe the environmental factors that affect a crop’s phenotype, including unique environmental contexts, farming practices and growth habitat.

    CTS’ Vasconha RYO brand, an American-blend type, is made of 100 percent tobacco cultivated by farmers in Gascony, the Basque Country and Aragon, traditional tobacco cultivating regions on both sides of the Pyrenees. Wervikse Tabak b34, a fine-cut dark blend, comes from Wervik, a historical tobacco-growing region in Flanders. The tobacco for Veramia, a Virginia blend, is cultivated exclusively in the western Spanish region of Extremadura, where tobacco has been grown since the 16th century.

    Focus on Origin

    The company’s bestseller is 1637. In October 2023, the product was the third-bestselling RYO brand in France. Made of French tobaccos grown in the southwest, its name alludes to the year when tobacco was first planted in the region. The brand was created in 2008 by Traditab at the initiative of a cooperative of small tobacco growers, Tabac Garonne Adour (TGA), that sought to improve the price paid for local tobacco growers.

    Anne-Marie Bracq

    Marketing began regionally, with an emphasis on tobacconists. “At that time, there weren’t many such products on offer, as organic tobacco products were popular,” says Anne-Marie Bracq, director of CTS France. “We started out with 20 tons of tobacco and grew step by step, explaining to tobacconists that if they choose to sell our products, they support their country’s growers.”

    It’s a concept that works well in France, which takes pride in domestically produced cheese and wine varieties that derive their identities from clearly demarcated origins. The company has applied the same philosophy to the other two markets. In Spain, for example, it has a sales force of 17 people.

    CTS works with 120 tobacco farmers in France, who are organized in the TGA cooperative and cultivate almost 300 ha in the region between Bordeaux and Lot-et-Garonne. The farms are small, with tobacco representing only one of a variety of crops, typically planted on 2 ha to 4 ha.

    While in Belgium, CTS works with only one or two growers, it cooperates with 150 growers of a cooperative in Spain, which cultivates tobacco for CTS’ RYO brands on 550 ha.

    Jerome Duffieux

    “In France, tobacco growing is not as much a tradition as in Spain, and Burley is the main variety, with flue-cured Virginia [FCV] being more of a filler type,” explains Jerome Duffieux, director of Traditab. “Burley production is more mechanized whereas FCV production is more of a manual process in France. In Spain, where farms are bigger and more specialized in tobacco, it’s the other way around; Spanish FCV is more aromatic.”

    Like Traditab, CTS aims to preserve a centuries-old regional tradition. “Our objective is to promote tobacco culture, which involves paying farmers an adequate price,” says Bracq. “This is also important in Spain. Extremadura produces 95 percent of Spain’s tobacco, accounting for 1,900 jobs, and provides €91 million ($95.83 million) to the region’s gross domestic product.”

    CTS’s bestselling 1637 brand was named after the year that tobaccos were first grown in the southwest of France.

    Expansion Planned

    The tobacco growers cooperating with CTS face a challenge shared by farmers in other fields of agriculture: finding successors when they retire. “Maybe it’s more difficult for tobacco because it’s difficult to promote from a health perspective,” says Bracq. “But we still have the problem of economic viability. At CTS, we are looking at ways to maintain tobacco cultivation, trying to develop a future for growers and [figuring out] how to support them economically. We are also running a program to find new farmers.”

    CTS plans to expand its current portfolio by developing a new RYO brand, but it’s not easy, according to Bracq. Almost three years ago, France raised tobacco excise taxes to €6.61—substantially above the EU average of €3.34.

    The government has continued raising RYO taxes since, thus eliminating the buffer function RYO usually plays between factory-made cigarettes and cheap illegal smokes. “A pack of 20 cigarettes now costs €11 and a 30-gram pouch of rolling tobacco €15 to 20,” explains Bracq. “The RYO segment is now declining more heavily than the cigarette market.”

    CTS is presently also involved in a cigar project. “We are developing cigars that are made of tobacco from southern France and plan to launch them in the next three years,” says Bracq.