Author: Marissa Dean

  • Surprising Successes

    Surprising Successes

    Image: chokniti

    The uncelebrated triumphs of tobacco harm reduction

    By Cheryl K. Olson

    U.S. smokeless tobacco users are no more likely to die from cancer than people who never touched tobacco products. This unexpected news comes courtesy of the National Longitudinal Mortality Study. Compared to those who never used tobacco, current users of smokeless products do not have elevated mortality risks from all cancers combined.

    This was just one happy fact I ran across when writing articles for doctors summarizing alternative nicotine product risks and benefits. I felt a similar “Wow! Really?” writing recently for this magazine about today’s astonishingly low youth smoking rates. 

    It’s time to stop, notice and give a cheer for good news about tobacco harm reduction (THR) that doesn’t get enough attention. Interesting evidence from research studies, natural experiments and everyday life observations ought to be shared.

    This is not just about raising smiles. The accumulated weight of these bits of information can change mindsets. They can influence how future studies are framed and which policies are proposed and implemented.

    I asked colleagues involved in harm reduction to suggest examples to celebrate. They include:

    • reduced-risk options that knocked down smoking in a particular nation or subgroup;
    • unexpected positive shifts in behavior, such as people who try vaping and notice one day that they no longer smoke;
    • harmful behaviors we were worried about that, to our relief, don’t seem to be happening (i.e., vaping as a gateway to youth smoking);
    • and finally, personal observations about the effects of THR.

    Transforming the Map

    We can’t say it often enough: cigarette smoking is still the leading preventable cause of disease and death in the U.S. It kills millions worldwide every year. Preventing cigarette use and helping people who don’t quit to consider lower-harm alternatives are medical and moral imperatives.

    As pioneering nicotine researcher Karl Fagerstrom has said, “Realistically, no single alternative nicotine product category will be able to reduce smoking rates and the associated disease burden.” Individuals and nations will find different options appealing and acceptable. His article “Can Alternative Nicotine Products Put the Final Nail in the Smoking Coffin?” highlights five nations’ successes. In the U.K., Sweden, Norway, New Zealand and Japan, higher uptake of alternative nicotine products has meant lower smoking rates compared to their neighbors.

    According to the Associated Press, “Sweden, which has the lowest rate of smoking in the Europe Union, is close to declaring itself ‘smoke-free’—defined as having fewer than 5 percent daily smokers in the population.” As of 2022, they had reached 5.6 percent. Thanks in large part to snus, Sweden has the lowest tobacco-related mortality among men in Europe.

    David Sweanor of the Centre for Health Law, Policy and Ethics at the University of Ottawa regularly monitors tobacco company behavior. When Japan Tobacco released their second-half results in July, he noted the “extraordinary” shift in Japan’s tobacco use.

    “Overall, the cigarette market has declined by half since heated products were introduced,” Sweanor says. “It is important to note that Japan has achieved this dramatic decline in cigarette smoking without policies actively encouraging the change.” 

    Roberto Sussman of the National Autonomous University of Mexico UNAM challenges us to look at the inverse proposition. “In the last 20 years, is there one case—a country, a subpopulation—of a significant reduction in smoking prevalence in which any effect or influence from usage of noncombustible products can be absolutely ruled out?” he asks. “I doubt there is a single case.” 

    Natural experiments created by bans on e-cigarettes in some U.S. states offer added noteworthy support for vaping as an effective substitute for smoking. Compared to “control” states with no full or partial e-cigarette bans, the states of Massachusetts, Washington and Rhode Island saw increased cigarette sales.

    Inadvertent Quitting

    Personal stories and research have shown that taking up vaping can mean putting down cigarettes—for people who initially had no plans to quit. This includes analyses by Karin Kasza and colleagues of widely respected ongoing studies such as the Population Assessment of Tobacco and Health (PATH) and the International Tobacco Control Four Country Smoking and Vaping surveys (of the U.S., Canada, Australia and England).

    A recent systematic review by Elias Klemperer and colleagues found little evidence that conventional smoking cessation methods induce quit attempts among those without plans to do so. “The optimal treatment (or treatment combination) for this population remains unclear,” the authors state.

    “No one ever ‘quit by accident’ with a nicotine patch, nicotine gum, nicotine lozenges, nicotine inhalers, Chantix/Campix, bupropion or smoking cessation counseling,” says Charles A. Gardner of Harm Reduction Strategies. “But millions of smokers who had no intention to quit have ‘quit by accident’ with nicotine vapes.”

    Gardner believes this point deserves more attention. “If 75 percent of smokers claim they want to quit, then obviously 25 percent have no intention to quit,” he says. “No approved smoking cessation intervention will ever reach them. Nicotine vapes do.”

    A related finding that deserves notice: Researchers at the U.S. Food and Drug Administration’s Center for Tobacco Products published evidence that mint/menthol ENDS users were more likely to switch and quit than tobacco-flavored e-cigarette users. The authors refer to additional research that identified better switching odds with nontobacco-flavored products.

    Gateway or Diversion?

    I previously reported on the unanticipated and little-lauded plunge in U.S. youth smoking rates (“Where’s the Parade?,” Tobacco Reporter, March 2023). The 2022 National Youth Tobacco Survey found that one in 10 (10.9 percent) high school students had ever tried a cigarette. Just 2 percent reported smoking in the past 30 days.

    Although youth vaping is down from its 2019 peak, e-cigarettes are the most common nicotine product used by teens. Past-month use stands at 14.1 percent. Concerns have persisted among researchers and policymakers that vaping could lead youth who wouldn’t otherwise smoke to start.

    Recently, more sophisticated assessments have challenged that connection. PATH study analyses by Kenneth Warner of the University of Michigan and colleagues show that few teens become established smokers regardless of previous e-cigarette use. When other known risk factors for youth smoking are taken into account, it turns out that ever-use of e-cigarettes makes a trivial difference. 

    Rather than leading teens down a path to smoking, e-cigarettes seem more likely to divert teens away. A new article by Christine Delnevo and Andrea Villanti of Rutgers University does a deep dive into national trends in high school student smoking since 1991. They found that “the most rapid declines in cigarette prevalence have occurred in the past decade, when e-cigarettes emerged as a popular product among youth.”

    THR in Daily Life

    A scientist who has worked in harm reduction inside and outside of industry points to an under-praised behavior shift in one important subgroup: people who work in nicotine product companies. At both the offices of a large e-cigarette maker and at a legacy multinational tobacco company, “I’ve never seen or known someone to smoke,” they said. “Even at a bar or outside of the office. But plenty of people vape or use other alternatives. And most, if not all, were former smokers.”

    Their conclusion? “Reduced-risk product availability and a culture of acceptance actually change behavior.”

    Christopher Greer, CEO of TMA and president of The GTNF Trust, described how tobacco harm reduction principles benefited his health in unexpected ways. “When I met my wife, I was very heavy—coming up on 260 pounds. I had a dependency on food for stress relief, and a stressful job.” He found that the typical advice from health professionals (e.g., cut out junk foods and fast food) didn’t fit his situation. Nor did a pharmaceutical option.

    “Utilizing principles I knew from THR, I crafted a risk reduction plan for my eating,” Greer says. For example, he identified and targeted situations that put him at high risk for overeating. “It was incredibly difficult, but a decade later, I’m a much healthier, stable weight.”

    Greer likens his transformation to transitioning to reduced-risk tobacco products: “another form of people finding agency in their own health decisions, when standard treatment isn’t working.”

    Citations

    Chang JT et al. (2023). Characteristics and patterns of cigarette smoking and vaping by past-year smokers who reported using electronic nicotine-delivery systems to help quit smoking in the past year: Findings from the 2018–2019 Tobacco Use Supplement to the Current Population Survey. Nicotine & Tobacco Research. https://doi.org/10.1093/ntr/ntac199

    Delnevo CD & Villanti AC (2023). Dramatic reductions in cigarette smoking prevalence among high school youth from 1991 to 2022 unlikely to have been undermined by e-cigarettes. International Journal of Environmental Research and Public Health. https://doi.org/10.3390/ijerph20196866

    Fagerstrom K (2022). Can alternative nicotine products put the final nail in the smoking coffin? Harm Reduction Journal. https://doi.org/10.1186/s12954-022-00722-5

    Kasza KA et al. (2021). Association of e-cigarette use with discontinuation of cigarette smoking among adult smokers who were initially never planning to quit. JAMA Network Open. https://jamanetwork.com/journals/jamanetworkopen/article-abstract/2787453

    Kasza KA et al. (2023). Associations between nicotine vaping uptake and cigarette smoking cessation vary by smokers’ plans to quit: longitudinal findings from the International Tobacco Control Four Country Smoking and Vaping Surveys. Addiction. https://onlinelibrary.wiley.com/doi/10.1111/add.16050

    Klemperer EM et al. (2023). A systematic review and meta-analysis of interventions to induce attempts to quit tobacco among adults not ready to quit. Experimental and Clinical Psychopharmacology. https://psycnet.apa.org/doi/10.1037/pha0000583

    Sun R et al. (2023). Association of electronic cigarette use by U.S. adolescents with subsequent persistent cigarette smoking. JAMA Network Open. https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2802764

    Sun R et al. (2022). Is adolescent e-cigarette use associated with subsequent smoking? A new look. Nicotine & Tobacco Research. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8962683/

    Timberlake DS et al. (2017). A longitudinal study of smokeless tobacco use and mortality in the United States. International Journal of Cancer. https://onlinelibrary.wiley.com/doi/10.1002/ijc.30736

    Xu Y et al. (2022). The impact of banning electronic nicotine-delivery systems on combustible cigarette sales: Evidence from U.S. state-level policies. Value in Health. https://doi.org/10.1016/j.jval.2021.12.006

  • A Heady Mixture

    A Heady Mixture

    Photos: AIR Global

    AIR Global is revolutionizing shisha smoking with a mixture of technology and tradition.

    By George Gay

    As anybody who has tried it will be aware, dabbling with tradition is usually fraught, but it can be done successfully provided the rituals of the tradition remain largely the same and any changes introduced are aimed exclusively at improving the experience of taking part in the traditional activity. This idea came to mind while taking part in a Q&A with Ronan Barry, chief corporate and regulatory affairs officer at Advanced Inhalation Rituals Global (AIR Global), because the focus at one point turned to the company’s latest product, OOKA, which Barry described as the “future of shisha.”

    Tobacco Reporter: Can you describe what sets OOKA apart and the philosophy behind it?

    Ronan Barry: With OOKA, we’ve successfully blended the rich traditions of shisha with cutting-edge technology, offering a shisha experience like no other. Our philosophy at AIR Global revolves around pushing the boundaries of traditional shisha experiences, with a particular focus on reducing toxicants in shisha aerosol while delivering cleaner, more consistent and higher quality inhalation rituals.

    Before you go into the details of OOKA, could you briefly describe traditional shisha consumption?

    Traditionally, flavored shisha involves the heating of the shisha mixture rather than burning, setting it apart from combustible tobacco products. Shisha itself is a moist mixture comprised primarily of glycerin and fructose and a relatively small amount of tobacco. The mixture heats to a temperature of about 200 degrees Celsius, creating vapor that is fundamentally different from tobacco smoke.  However, the conventional heat source is charcoal, which does burn and emits toxicants such as carbon monoxide. These emissions can, depending on how the shisha is set up, penetrate the waterpipe device and also pollute indoor environments.

    But your new product is different?

    Very much so. Our latest innovation, OOKA, introduces a revolutionary concept. It is the world’s first pod-based, charcoal-free shisha device, which heats the molasses in a micro-oven powered by a rechargeable battery. Its innovative heating element, in collaboration with an integrated microchip, heats the shisha to its optimal temperature. This ensures users enjoy a consistent and pleasurable experience, drawing a parallel to the precision that coffee enthusiasts seek in achieving the perfect brew. Importantly, OOKA’s innovative design brings the traditional shisha ritual into the modern era by removing the need for charcoal to heat the shisha and, in turn, removing charcoal “smoke” from the experience. As such, OOKA provides the cleanest shisha experience available for both users and the environment. It offers, on average, a 94 percent reduction in a range of harmful chemicals and nondetectable levels of carbon monoxide.

    Are there other advantages?

    Certainly. The new system eliminates any inconvenience of preparation, ash and mess. It reduces the preparation time to five minutes—four times faster than conventional waterpipe devices on the market. The pods contain the prepared shisha, and OOKA’s smart technology monitoring system checks the temperature 25 times per second before it passes through the water for inhalation. This offers consumers the ease of a lounge experience at home at a drastically reduced price.

    Would you describe your company briefly?

    AIR Global, which was founded in 1999, is majority owned by London-based private equity firm Kingsway Capital. We are headquartered in Dubai, United Arab Emirates (UAE), with offices in the U.S., U.K., the UAE, [the] KSA [Kingdom of Saudi Arabia], India, Poland and Germany, and factories in Ajman, [the] UAE and Poland. Reinhard Mieck is the CEO of AIR Global, which he joined in May 2021, bringing with him a wealth of experience from a 19-year career in FMCG and nine years in the luxury industry.

    Is AIR Global a profitable company?

    Yes. Our growth over the years is a testament to our commitment to innovation, product quality and customer satisfaction. Partly by expanding our customer base to more than 100 countries today, we have consistently outperformed the market. We are currently the leading company in the global shisha market, with 47 percent market share. Beyond our current success, we envision significant long-term growth, reflecting the promising future of the entire shisha category. Presently, the global shisha market is valued at $19 billion, and by 2026, it is forecasted to rise to $22 billion, underscoring the potential for continued expansion and innovation.

    Our philosophy at AIR Global revolves around pushing the boundaries of traditional shisha experiences, with a particular focus on reducing toxicants in shisha aerosol while delivering cleaner, more consistent and higher quality inhalation rituals.

    What products do you offer beyond OOKA?

    The most significant is Al Fakher, the world’s leading brand of shisha molasses. We have recently launched Shisha Kartel, the fastest-growing shisha brand in Europe, and we offer Zodiac, which is a non-nicotine, nontobacco tea-based product. Our influence extends to various aspects of the shisha industry, and through our online platforms, such as Hookah-Shisha.com in the U.S. and Shisha World in Europe, we sell a range of shisha devices and accessories. In particular, we promote the use of heat management devices in place of aluminum foil in the setup of a shisha session to deliver a cleaner shisha cloud with minimal toxins to every consumer.

    Where, geographically, does AIR Global currently sell its products? Is that geographical spread increasing or decreasing?

    AIR Global currently sells its products in more than 100 countries, showcasing our global reach and commitment to serving diverse communities. While the Middle East, the United States, Europe and Africa are our largest markets, our presence continues to expand.

    Are AIR Global’s volumes increasing or decreasing, and is this increase or decrease driven by particular markets?

    Our sales volumes have been on an upward path, reflecting the appeal of our innovative products such as OOKA. The launch of OOKA made a significant impact, with its charcoal-free and smoke-free design. In fact, OOKA achieved remarkable success in the UAE, where it quickly sold out within a month of launching due to its unique appeal. Our dedication to innovation and product quality continues to drive growth and customer satisfaction in various markets.

    Are consumer preferences changing, especially perhaps in respect of shisha flavors?

    Consumer preferences are evolving in respect of shisha, and our commitment to staying ahead of these preferences ensures that we continue to provide an exciting and evolving range of shisha flavors to satisfy our customers. Shisha enthusiasts today have a growing appetite for a wider range of flavors and experiences. This has driven us to expand our flavor offerings and introduce innovative options that cater to diverse tastes, such as Zodiac nicotine-free tea-based shisha flavors, which come in both the traditional shisha format as well as in pods designed for the OOKA system, making this shisha experience available to a wider audience.  We anticipate substantial growth in the nicotine-free segment, similar to the trend toward alcohol-free beers, wines and spirits.

    How does the regulatory landscape for shisha look?

    The fundamental differences between shisha and other tobacco and nicotine products are increasingly appreciated by regulators. Recently, the state of California prohibited all flavored tobacco and nicotine products but created a specific exemption for shisha. The reasons for this were the social and cultural importance of shisha as well as the fact that it is not conducive to youth use and tends to be consumed occasionally rather than compulsively. The global average consumption frequency among regular shisha users is two sessions per week.

    Do you have any idea of the age profile of shisha users?

    External sources, such as data published by the CDC [Centers for Disease Control and Prevention] and FDA [Food and Drug Administration] annually in the United States, demonstrate that shisha is very much an adult-oriented pastime. For several years now, the rate of experimentation by minors with shisha has been in the low single digits and the lowest among tobacco and nicotine products. This is not surprising as shisha is a time-consuming ritual, usually enjoyed in social settings, and cannot be consumed inconspicuously or on the go.

    AIR Global says it has blended the rich traditions of shisha with cutting-edge technology.
    AIR Global says it has blended the rich traditions of shisha with cutting-edge technology.

    Why do people consume shisha?

    People consume shisha for various reasons, making it a multifaceted experience. Shisha is often a cultural and social ritual that brings people together. It serves as a means of relaxation, enjoyment of diverse flavors and a platform for engaging in conversations with friends and family. The rich heritage and centuries-old tradition associated with shisha contribute to its appeal, fostering a sense of connection and shared experience among enthusiasts.

    Given the often strongly social aspects of shisha consumption, did the pandemic have a negative effect on sales?

    Yes and no. On the one hand, social engagement was limited during the pandemic; shisha bars were closed in many countries, and that did have an impact. On the other hand, border closures had the effect of substantially cutting down smuggling, which was a boon to legally operating businesses and mitigated some of the negative impacts of the pandemic. 

    Are counterfeit products a major problem in respect of shisha markets?

    Counterfeit products can be a concern in the shisha market, and we take this issue very seriously. The production of counterfeit shisha products creates multiple risks to consumers and can tarnish the reputation of legitimate manufacturers. We are committed to addressing this problem through a multifaceted approach to protect the health and safety of end users and uphold industry standards. For instance, the OOKA pod system incorporates patent-protected smart technology and a counterfeit-resistant design. It uses RFID [radio-frequency identification] technology for heating profiles, an NFC [near-field communication] chip to ensure only AIR Global-approved pods work with OOKA, 128-bit AES [advanced encryption standard] encryption to prevent counterfeit pods from functioning, and microchips for traceability.

    How is shisha taxed relative to other tobacco products, and do taxation levels play any part in exacerbating the illegal trade?

    Shisha is often unfairly taxed in relation to other tobacco products because of the outdated approach of taxation based on weight. This practice fails to consider the unique characteristics of shisha, which include a significantly lower presence of tobacco and toxicants compared to combusted tobacco. Shisha should be classified as a distinct category with its own taxation framework that doesn’t penalize the weight of nontobacco ingredients in the product. Adopting a more considered taxation system that aligns with the nature of shisha would not only protect consumers from unfair taxation but would also help address the issues of black market and counterfeit shisha products, ensuring the health and safety of end users while preserving government revenue.

    Finally, are there going to be any major changes to AIR Global or the way it operates in the near future?

    As a forward-looking company, we are continually exploring opportunities for growth and innovation. Our commitment remains unchanged—to deliver the highest quality products and services to our customers. Our focus continues to be on pushing the boundaries of the shisha experience, ensuring that we stay at the forefront of the industry and continue to offer unparalleled shisha experiences.

  • KT&G Celebrates Korea-Indonesia Ties

    KT&G Celebrates Korea-Indonesia Ties

    KT&G celebrated the 50th anniversary of South Korea-Indonesia diplomatic relations by organizing various global CSR activities, including support for university student startups, cultural festivals and improvements in the education environment.

    On Sept. 28, KT&G selected the finalists in a competition for business ideas at UNTAR University’s Imagination Entrepreneurship School in Jakarta, Indonesia. A day earlier, the South Korean cigarette maker hosted a similar event at the State University of Jakarta.

    Meanwhile, the KT&G Welfare Foundation finished renovating an elementary school in the Bogor region, transforming an old building into a new educational facility with an earthquake-resistant construction.

    In 2014, KT&G established the KT&G Korean Language Institute in Indonesia, providing approximately 2,800 people with opportunities to learn Korean. In addition, the company operates Imagination University, which supports the development of the capacity and cultural experiences of Indonesian youth. In 2021, it established the KT&G Vocational Training Center at Malang’s UKCW University, teaching marginalized youth sewing, computer technology and other skills.

    “We are taking the lead in promoting communication between the two countries through cultural exchanges in celebration of the 50th anniversary of Korea-Indonesia diplomatic relations,” said a KT&G representative. “We will continue to make efforts to spread Korean culture and enhance exchanges through various platforms.”

    Indonesia is an important market for KT&G, which aims to earn half of its sales from overseas business by 2027. The company operates a tobacco factory in Indonesia and recently announced the construction of a second manufacturing facility.  

  • Disposable Vape Waste a Problem for Cities

    Disposable Vape Waste a Problem for Cities

    Photo: bennyrobo

    Disposable e-cigarettes are creating a new waste management challenge for U.S. local governments. One of the main issues is that the battery-powered products are classified as hazardous waste.

    The devices, which contain nicotine, lithium and other metals, cannot be reused or recycled. Under federal environmental law, they shouldn’t go in the trash.

    “We are in a really weird regulatory place where there is no legal place to put these and yet we know, every year, tens of millions of disposables are thrown in the trash,” Yogi Hale Hendlin, a health and environmental researcher at the University of California, San Francisco, told the Associated Press.

    In late August, sanitation workers in Monroe County, New York, packed more than 5,500 e-cigarettes into 55-gallon steel drums for transport to a giant industrial waste incinerator in northern Arkansas, where they would be melted down. Local officials said it’s the only way to keep the devices out of waterways and landfills.

    “These are very insidious devices,” said Michael Garland, director of the county’s environmental services. “They’re a fire risk, and they’re certainly an environmental contaminant if not managed properly.”

    Elsewhere, the disposal process has become both costly and complicated. In New York City, for example, officials are seizing hundreds of thousands of banned vapes from local stores and spending more than $1 each for disposal.

    Vaping critics say the industry has skirted responsibility for the environmental impact of its products while federal regulators have failed to force changes that could make vaping components easier to recycle or less wasteful.

    Disposable e-cigarettes currently account for about 53 percent of the multibillion U.S. vaping market, according to U.S. government figures, more than doubling since 2020.

  • BAT Uses Rooibos Tea in Heat Sticks

    BAT Uses Rooibos Tea in Heat Sticks

    Image: rtvistlive

    BAT has begun selling heat sticks made from nicotine-infused substances such as rooibos tea to counter an incoming EU ban on flavored heated-tobacco products, according to Reuters.

    Health experts have warned that the safety of the new products is unclear.

    BAT has launched heat sticks containing nicotine-infused rooibos tea rather than tobacco in nine European markets, including Germany and Greece. The company plans to roll the product out globally.

    BAT stated that the move will provide “adult nicotine users and smokers with the widest possible range of reduced-risk products.”

    “Anything that burns or is vaporized … and inhaled into the lungs, probably will cause some effects,” said Erikas Simonavicius, a research associate at King’s College London, of the unknown risk factors of the tea-infused heat sticks. Tobacco companies have not yet published any research showing the health implications of rooibos or other zero-tobacco heat sticks, said Simonavicius.

    BAT is the first big tobacco company to publicly state what its zero-tobacco sticks are made from. The company declined to comment on whether it had conducted research on the health implications of the product.

    Sales of herbal tobacco-heating products have been growing in Europe.

    Philip Morris International plans to roll out a zero-tobacco stick later this year, according to statements made during the company’s investor day in September. PMI declined to comment on what the product is made from or its health implications.

    According to Jacek Olczak, PMI CEO, the company’s product could avoid the regulatory scrutiny of tobacco products.

    According to BAT, its new zero-tobacco heat sticks are not subject to EU tobacco rules, meaning the company can sell its sticks in flavors even after a ban on flavored heated-tobacco products is implemented later this month.

    “The obvious advantage these new products should provide is a way to keep menthol and flavor varieties on the EU market,” said Owen Bennett, a Jefferies analyst.

    Experts do not think the regulatory advantages will last long, however, according to Bennett and Phil Gorham, senior equity analyst at Morningstar.

    “The next generation of regulation is going to target nicotine,” Gorham said.

  • Pakistan Trace System Rolled Out by Year’s End

    Pakistan Trace System Rolled Out by Year’s End

    Image: Tobacco Reporter archive

    Pakistan’s track-and-trace system is expected to be fully installed throughout the tobacco industry by the end of December 2023.

    Two multinationals and one local tobacco company have already installed the Federal Board of Revenue’s (FBR) new automated system while six local companies have installed manual track-and-trace systems.

    Some local companies have raised concerns about the cost of the systems, prompting The Business Recorder to urge the government to offer discounts or installment payments on the equipment.

    According to the FBR, revenue from the tobacco sector has increased following the implementation of the system, with a major increase in the rates of the federal excise duty on cigarettes.

  • PMI: COP10 Missed Opportunity

    PMI: COP10 Missed Opportunity

    Image: PMI

    Philip Morris International is concerned that participants in the upcoming Conference of the Parties to the World Health Organization Framework Convention on Tobacco Control (FCTC) will promote prohibitionist policies for noncombustible tobacco products, according to an article in The Guardian.

    “The agenda and meeting documents have been made public for the main part,” PMI Senior Vice President of External Affairs Gregoire Verdeaux wrote in an email. “Unfortunately, they reconfirmed every concern we had that this conference may remain as the biggest missed opportunity ever in tobacco control’s history … WHO’s agenda is nothing short of a systematic, methodical, prohibitionist attack on smoke-free products.”

    Without “reasonable, constructive outcomes,” Verdeaux wrote, the “WHO will have irreversibly compromised the historic opportunity for public health presented by the recognition that smoke-free products, appropriately regulated, can accelerate the decline of smoking rates faster than tobacco control combined.”

    While tobacco companies are not invited to the Conference of the Parties to the FCTC, Verdeaux said he will be in Panama “to publicly denounce the absurdity of being excluded from it while PMI today [is] undoubtedly the most helpful private partner WHO could have in the fight against smoking.”

    Last year, PMI made $10.19 billion in revenue from products like heated-tobacco and electronic cigarettes.

  • BAT Appoints Chief People Officer

    BAT Appoints Chief People Officer

    Image: tomertu

    BAT has appointed Cora Koppe-Stahrenberg to the new role of chief people officer. She will join the BAT management board on Nov. 1, 2023.

    Bringing critical experiences from other sectors and industries, Koppe-Stahrenberg was most recently global head of human resources of Fresenius Medical Care, a publicly listed global healthcare company with over 125,000 employees. While at Fresenius Medical Care, Koppe-Stahrenberg established a new global HR function and implemented a global people strategy, which focused on the creation of a collaborative and empowering culture delivered through a number of change initiatives. Previously, Koppe-Stahrenberg held various international senior HR positions at Marsh and McLennan Companies, Emirates Investment Authority and General Electric.

    “I am delighted to welcome Cora to the management board,” said BAT CEO Tadeu Marroco in a statement. “This is a significant management team enhancing appointment for BAT. Culture and collaboration are at the heart of my leadership agenda; Cora shares these values and will play a key role in the group’s transformation to build ‘A Better Tomorrow.’ I have no doubt that Cora will bring a fresh perspective having worked internationally in multiple sectors outside our industry and will bring new insights and capability to our management team.

    “I look forward to working with Cora to deliver a winning culture and a dynamic, modern BAT.”

    The chief people officer will report to the chief executive.

  • Supreme Court Declines to Hear Avail Vapor Case

    Supreme Court Declines to Hear Avail Vapor Case

    Image: Clinton

    The U.S. Supreme Court declined on Oct. 10 to hear Avail Vapor’s objections to the Food and Drug Administration’s regulatory authorization process.

    In 2021, the regulatory agency denied Avail Vapor’s request to approve fruit-flavored and dessert-flavored e-cigarettes. The company protested that the agency had made the application process intentionally difficult.

    In a Supreme Court brief filed Aug. 3, Avail claimed the FDA failed to inform companies of a change in policy that would only allow for approval if the applications included data from studies conducted over time comparing the effectiveness of the multi-flavored products to that of tobacco-flavored products as an aid in adult smoking cessation.

    Avail Vapor had asked the U.S. Supreme Court to examine a lower court’s refusal to review a marketing denial order issued by the FDA to Avail products.

    In its petition, Avail asked the Supreme Court to consider the lower court’s legal reasoning and decision.

    Among other things, Avail argues that the FDA’s decision-making was arbitrary and capricious; that another court sided with a different petitioner against the FDA on the same basic arguments; and that the case is significant not only for Avail but for the entire industry and its customers.

  • Ireland Raises Cigarette Prices, Plans Vape Tax

    Ireland Raises Cigarette Prices, Plans Vape Tax

    Image: Vitalii

    Ireland increased the price of a pack of 20 cigarettes by €0.75 ($0.80) and announced a new tax on vaping products for next year, reports The Irish Times. Other tobacco products will be subject to a pro-rate increase.

    The move “supports public health policy to reduce smoking levels in Irish society,” according to Finance Minister Michael McGrath.

    “In light of public health interests, continuing delays to the revision of the Tobacco Products Tax Directive and the Program for government commitment to tax e-cigarettes and vaping products, I am proposing to introduce a domestic tax on these products [e-cigarettes and vaping products] in next year’s budget,” said McGrath.

    “Considerable preparatory work” by the Department of Finance and Revenue will be necessary to draft the underpinning legislation, he said.

    “Nicotine is one of the most addictive substances on the planet, and there has been an explosion in youth use of e-cigarettes that has been further fueled by the advent of disposable vapes,” said Chris Macey, director of advocacy with the Irish Heart Foundation. “We can’t afford to wait a moment longer than necessary to impose this tax.”

    The Irish Heart Foundation called on the finance minister last week to introduce a €0.10 per milliliter tax on e-liquid.

    Smokers’ rights group warned against unintended consequences. “Annual tax hikes on tobacco are punishing consumers for enjoying a perfectly legitimate habit,” said John Mallon, spokesperson for Forest Ireland. “Not only does it discriminate against consumers on lower incomes, [but] it will drive even more smokers to the black market.” Mallon said smokers “don’t deserve” the excise increase.

    “Legitimate retailers will lose business to criminal gangs, and smokers who stay within the law will be further punished compared to those who, understandably, buy their tobacco from illicit traders,” he said.