Author: Marissa Dean

Zimbabwe Tobacco Export Earnings Up

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Zimbabwe has recorded a 26 percent increase in export earnings from tobacco products, according to The Herald.
Export earnings were USD603 million in the January 2023 to August 2023 period, up from USD477 million in the same 2022 period, following the operationalization of the Tobacco Value Chain Transformation Plan (TVCT).
Zimbabwe exports partly or whole stemmed/stripped tobacco or not stemmed/stripped tobacco, tobacco refuse, cigars, cheroots and cigarillos containing tobacco, cigarettes and manufactured tobacco.
Volume increased 13 percent, and the average price increased 12 percent.
Of the exported product, 71 percent was partly or wholly stemmed/stripped tobacco, and 19 percent was tobacco refuse, the same trend from 2022.
“There has been a significant increase in shipments to the Far East as shipping constraints have eased,” said Rodney Ambrose, CEO of the Zimbabwe Tobacco Association. “Also, a higher value crop has been exported to select destinations. Unfortunately, the same growth cannot be said of growers’ earnings. The future of the tobacco sector remains positive, provided we can address issues around growers’ viability and sustainability.”
“Credit must be given to farmers who continue to grow the crop even if they are breaking even or making a loss with the hope that one day, they will make a profit,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association. “Contractors also should be thanked for rendering support to farmers. However, the Tobacco Industry and Marketing Board (TIMB) must work on reducing or eliminating the participation and licensing of surrogates (middlemen) who are putting huge markups on their services to the detriment of farmers.”
Farmer profitability can only be enhanced if all stakeholders work to reduce production cost with the TIMB enforcing contract pricing and monitoring the delivery of adequate inputs to farmers on time, according to Seremwe.
The government and tobacco stakeholders came up with the TVCT with the aim of creating a USD5 billion industry by 2023.
Export of tobacco products has been on an upward trend, with earnings of USD795 million in 2020, USD837 million in 2021 and USD998 million last year. By the end of this year, earnings are expected to exceed USD1 billion.
October 10, 2023
Pacific Cigarette Co. in Voluntary Business Rescue

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The Pacific Cigarette Company (PCC) was granted a request to be placed under voluntary business rescue following an assessment by revenue authorities that alleged tax violations and outstanding obligations, leaving the company facing liability in the amounts of USD19.3 million and USD79.8 billion, reports The Herald.
The tax liability also put the company in an insolvent position, according to the PCC, formerly Savanna Tobacco Company.
The PCC connects the financial issues to foreign currency challenges faced by Zimbabwe in 2005, when the PCC entered a partnership with the Reserve Bank of Zimbabwe (RBZ) and piloted toll manufacturing to survive the introduction of 50 percent foreign currency surrender requirements on exports.
“Through toll manufacturing, PCC and other businesses were able to source raw materials from their customers, ensuring their sustainability, while complying with the RBZ’s 50 percent foreign currency surrender requirements,” the company said.
“Then the Reserve Bank governor promoted toll manufacturing as a durable business model for companies facing similar foreign currency challenges.
“Since then, the toll manufacturing model has been our accepted raw material funding model, removing the need for PCC to finance the working capital for export raw materials.
“In June this year, without any notice, Zimra performed a spectacular U-turn that has undermined the stability of the business and deemed the raw materials funded by our customers as income, subject to VAT,” according to the PCC.
“They also levied an arbitrary markup and interest penalties on PCC for the tax assessment period 2018 to 2020, to which we have objected.
“The issued tax assessments against the company impose tax liabilities amounting to USD19.3 million and USD79.8 billion.” The PCC alleges that Zimra garnished all its bank accounts. “Next, Zimra took the unprecedented step of instructing our customers to pay Zimra any monies owed to PCC, effectively closing off all the company’s income streams.
“In an effort to get the garnish lifted, PCC submitted a payment plan proposal while awaiting the determination of the objection, which payment plan was rejected by the tax authority,” said the PCC.
“Zimra’s unprecedented actions on false tax violations have regrettably placed PCC in an insolvent position, forcing the company’s directors to place the business under voluntary business rescue to safeguard the interests of all creditors and stakeholders whilst the company continues to try and amicably resolve the matter with the tax authority.
“PCC applied to be placed under voluntary business rescue on Oct. 2, 2023, and the Master of the High Court Oct. 4, 2023, appointed Mr. Reuben Mukavhi of Rubaya-Chinuwo Law Chambers Legal Practitioners as the corporate business rescue practitioner,” according to the company.
“The Zimbabwe Revenue Authority is not in a position to comment in the public domain on the tax affairs of an individual taxpayer as the law through the preservation of secrecy protects clients’ right to confidentiality,” Zimra said.
The PCC is Africa’s second-largest indigenous tobacco company and Zimbabwe’s first locally owned cigarette company.
October 10, 2023
Oman to Implement Plain Packaging

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Oman’s Ministry of Commerce, Industry and Investment Promotion (MoCIIP) announced that the mandatory standard for plain packaging of tobacco products will be effective April 2024, according to the Daily Muscat.
“The ministry requests tobacco companies and local compliance firms to follow Ministerial Decision No. 2023/67, which requires implementing Omani Standard OS1655 for plain packaging of tobacco products. This becomes mandatory from April 4, 2024,” the MoCIIP said in a statement.
The ministry issued a decision on the standard in March 2023 and deemed it a binding Omani standard specification.
The standard requires that at least 65 percent of the packaging include a public health warning, picture and a message to quit while the rest of the packaging displays the brand name in a standardized font and color.
October 9, 2023
Korea to Require Ingredient Disclosure

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South Korea’s National Assembly approved the Law on the Control of Harmful Effects of Tobacco during its full session on Oct. 6, according to The Korea Bizwire. The law mandates the disclosure of the types and amounts of harmful ingredients used in cigarettes.
The law will take effect two years after it is officially announced. It is expected to be put into practice by October 2025.
Following implementation of the law, cigarette makers, importers and distributors will have to regularly test harmful ingredients in their products every two years and disclose the results and information on ingredients in the cigarettes with the Ministry of Food and Drug Safety.
Data about the dangerous ingredients will be made available to the public online. The Tobacco Harmfulness Control Committee will decide which specific harmful components will be disclosed.
E-cigarettes, including liquid and cigarette varieties, are also included in the law.
Previously, South Korea disclosed tar and nicotine levels in cigarettes but did not examine or reveal content of carcinogenic substances, including naphthylamine, nickel, benzene, vinyl chloride, arsenic and cadmium.
October 9, 2023
Kenya Wants to Ban BAT Nicotine Pouches

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Kenyan legislators are urging the government to ban the sale of BAT’s nicotine pouches Velo and Lyft, reports 2Firsts.
Health Minister Susan Nakhumicha was questioned about the products during a parliamentary address.
The Kenyan Tobacco Control Act (KTCA) states that all packaging of nicotine pouches and tobacco products must contain warnings in English and Kiswahili. Sabina Chege, Member of Parliament, showed two boxes of Velo nicotine pouches, which only displayed a reminder that Velo contains nicotine, which can be addictive. The argument by experts is that nicotine also poses serious health risks.
Allowing import and sale of the pouches could jeopardize the well-being of Kenyan youth, according to Chege. In response, Nakhumicha suggested the formation of a technical team to investigate the KTCA and make recommendations.
October 9, 2023
Serbia Raises Excise on Tobacco

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Serbia has raised excise taxes on cigarettes, fuel, alcohol and coffee by 8 percent, effective Oct. 1, reports Euractiv.
According to Bojan Stanic, deputy director of the Strategic Analysis Department at the Serbian Chamber of Commerce, the increase does not mean the products will become 8 percent more expensive; it comes down to the price structure.
“Excise taxes are increasing by 8 percent,” said Stanic. “When you look at the price structure of fuel, one part relates to the purchase price of fuel, and then excise tax is added, and this part of the excise tax is increased by 8 percent. This does not necessarily mean fuel at the pumps will become much more expensive.”
“The budget of Serbia is constrained, and it is under pressure due to rising interest rates for repaying the state’s debt,” said Stanic regarding the decision. “On the other hand, there is pressure that mostly affects the poor, and of course, it is necessary to provide increases in pensions and one-time transfers to the population in terms of assistance. All of this is applied to relieve the poorest part of the population. Additionally, it was necessary to find additional revenues. Someone calculated that increasing excise taxes was the way to go.”
“However, when we talk about other products like coffee, alcohol, and tobacco, which are also subject to excise taxes, these are not essential goods; people can live without them. Therefore, it is believed that there will be less resistance if taxes on these products are increased,” he added.
October 6, 2023
Center for Black Equity Calls for E-Cig Approval

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The Center for Black Equity (CBE) called on the U.S. Food and Drug Administration and the Center for Tobacco Products to grant broad approval to a full range of nicotine e-cigarettes, also known as vapes, in a major step toward closing the significant harm reduction and health equity gaps perpetuated by current FDA tobacco policies, according to a press release. The approval of vaping products would benefit Black and LGBTQ+ populations disproportionately impacted by the negative health effects of smoking, including cancer, according to the CBE.
The CBE’s call for expansive regulatory approval of e-cigarettes, including flavored vaping products, comes as the CBE released an econometric report that, for the first time, quantifies the benefits of switching from smoking to vaping in terms of lives saved, GDP benefit and healthcare savings.
The report was authored by Robert J. Shapiro, former undersecretary of commerce for economic affairs and advisor to former President Clinton, former President Obama and President Biden. Shapiro’s report found that between 2010 and 2022, shifting from smoking to vaping saved 113,000 lives, preserved $137 billion in GDP and saved $39 billion in healthcare costs—and that the availability of e-cigarettes reduced the number of smokers in the U.S. by 6.1 million during that same period.
“Championing meaningful harm reduction initiatives for Black and LGBTQ+ communities has been an elusive but essential aspect of effective public health advocacy for decades,” said Earl Fowlkes, president and CEO of the CBE. “If the Biden administration and the FDA are serious about health equity and harm reduction, especially when it comes to the president’s Cancer Moonshot initiative, the science is clear: Broad approval of flavored vaping products will save Black and LGBTQ+ lives, reduce smoking and drive meaningful progress in lowering preventable cancer rates in the U.S., especially among the most vulnerable populations.”
The report also reviewed existing academic and medical literature on vaping versus smoking to examine and verify the substantial scientific evidence that e-cigarettes have a drastically lower risk profile than cigarettes and can help individuals successfully reduce smoking or quit altogether.
“The single most effective way to help people stop smoking, which kills 480,000 people per year, is to encourage them to switch to vaping, which kills no people per year,” said Shapiro.
“The Center for Tobacco Products needs to be honest with American smokers—especially those in Black and LGBTQ+ communities who smoke at disproportionately higher rates—and proactively convey the substantial health benefits of shifting from smoking to vaping,” Shapiro said. “Future FDA policy on tobacco and nicotine products should draw on the well-established scientific evidence regarding the relative risks of e-cigarettes versus cigarettes and the utility of people using vaping to stop or reduce their smoking.”
The report also squarely examined the primary concern of critics of e-cigarettes, the supposed “youth vaping epidemic,” to which formal FDA approval of vaping products would allegedly contribute. “The supposed ‘youth vaping crisis’ narrative that has existed for some time in the media and, curiously, in public health conversations at the FDA is unfounded,” Shapiro continued. “The U.S. Centers for Disease Control and Prevention’s own data show that adolescent vaping has declined substantially in recent years—receding to 2014 levels, well below the 2019 peak—and that most young people who vape do so on an irregular or occasional basis without becoming dependent on nicotine.”
“The FDA and the Center for Tobacco Products have an obligation to follow the science, support harm reduction and health equity, and advance—rather than stall—President Biden’s Cancer Moonshot,” concluded Fowlkes. “The FDA must acknowledge the evidence-based benefits of switching from smoking to vaping and aggressively educate Black, LGBTQ+ and other smokers about those benefits. Failure to approve a wide range of vaping products is an abdication by the FDA of its public health responsibility to Black and LGBTQ+ individuals across the country who desperately want to access a way to quit smoking that actually works.”
October 5, 2023
Florida Sues Juul

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Florida’s attorney general, Ashley Moody, has filed a lawsuit against Juul Labs, alleging that the company improperly marketed its products to children and offered misleading information about its products’ nicotine content, reports WUSF.
The suit was filed in Hillsborough County Circuit Court. It seeks civil penalties and an injunction to prevent Juul “targeting children through their marketing and product design and from deceiving consumers with respect to the nicotine concentration.”
“Juul relentlessly marketed to underage users with launch parties, advertisements using trendy-looking and young models, social media posts and free samples,” the lawsuit states. “It created a technology-focused, sleek design that could be easily concealed and sold its product in flavors known to be attractive to underage users. Juul also manipulated the chemical composition of its product to make the vapor less harsh on the throats of the young and inexperienced consumers it courted. To preserve its young customer base, Juul relied on age verification techniques that it knew were ineffective.”
Juul responded to the lawsuit, stating that “it is disappointing to see the Florida attorney general direct her state’s resources to suing Juul Labs.”
Juul’s response sets out “a few facts that should be understood,” including that “Florida’s attorney general initially led the negotiations between the state attorneys general and Juul Labs. For reasons that have not been explained to the public, she ultimately decided not to participate in a settlement to which 48 states and territories are now party to. Had she done so, like all those other jurisdictions, Florida would have its share of millions of dollars to help combat underage use and develop cessation programs. Instead, the Florida attorney general has now embarked on a drawn-out, expensive and uncertain legal process.”
“Second,” the response continued, “Florida today suffers from the highest sales in the nation of illicit and potentially harmful disposable products emanating from China. These products are not in compliance with the [U.S. Food and Drug Administration’s] regulatory regime and, in many cases, are flagrantly targeting the state’s children. By contrast, over the past four years, Juul Labs has taken meaningful steps, including ceasing distribution of nontobacco, nonmenthol products in advance of FDA guidance on flavors, halting mass market product advertising, and restructuring our entire company with an emphasis on combating underage use. In part, due to these efforts, we have seen underage use of Juul products cut by 95 percent.”
The response went on to allege that “Florida has the highest sales of these mostly foreign-made products in the United States, with over 60 percent of vapor sales dominated by disposables whose companies often disregard responsible practices with inappropriate flavor names and questionable marketing. Over the past months, we have been engaged with the attorney general’s office to help create a best-in-class program to combat illicit products. Even though Juul Labs plans to fight this case vigorously, the company remains ready to help Florida stem the tide of the proliferation of Chinese-made disposable products that have found what amounts to be a safe haven for foreign-made illegal vapor products.”
October 5, 2023
BAT Adds Murray Kessler to Board

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Murray S. Kessler will join the board of BAT as an independent nonexecutive director and member of the nominations and remuneration committees with effect from Nov. 6, 2023.
Murray previously held several senior positions, including chief executive, president and board member of Perrigo; president, chief executive officer and chairman of the board of Lorillard Tobacco Co.; vice chair of Altria Group; and president, chief executive officer and chairman of the board of UST. Prior to joining UST, Murray had a 12-year career with Campbell Soup Company, having served as vice president of sales and marketing, general manager of the Swanson division of Campbell Soup and other leadership roles.
Commenting on the appointment, Luc Jobin, chair of the board, said: “I am pleased to welcome Murray Kessler to our board. Murray has extensive leadership experience in growing consumer product companies and managing regulated businesses, and I am looking forward to his contribution as we accelerate our strategy to build ‘A Better Tomorrow.’”
October 5, 2023
EU Considering Ban on Tobacco-Free Snus

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In a tweet from Member of Parliament Charlie Weimers, news of a potential ban on snus in the EU has come to light.
“A secret report I shouldn’t have landed on my desk,” the tweet said. “In the report that will be presented to the EU member states this week, there are two notable writings: (1) praise for how successful the snus ban has been and (2) a recommendation that the EU should extend the snus ban to the tobacco-free white snus (nicotine portions).”
“That the EU snus ban is a success is completely wrong,” he wrote. “It is actually snus that makes Sweden the only country in the EU that is on the way to reaching the U.N.’s goal of a smoke-free society (defined as less than 5 percent smokers), which has saved many lives. A ban on nicotine pouches would have been a hard blow to the attempt to eradicate smoking in the EU.
“Unfortunately, the Swedish exception for tobacco snus does not apply to nicotine pouches. If the EU Commission and the member states accept the report’s recommendation, nicotine pouches will also be banned in Sweden. Men have largely opted out of smoking in favor of snus while women looking for less dangerous alternatives choose nicotine pouches more often. Therefore, such a ban would hit women extra hard.
“The report has been written by consultants who work for DG SANTE (the EU’s health bureaucrats), and the writings probably would not have crept into the report if they did not have the support of the bureaucrats. Most likely, this is a test balloon from the bureaucracy. If the proposal falls to the ground at the meeting with the member states, the bureaucrats can blame the consultants, and if the proposal does not meet resistance, the bureaucrats can interpret it as a clear support and work on with a sharp proposal. This is how you often work in the EU’s bureaucracy.
“The government must therefore already make it clear at the meeting this week that our country opposes a ban on white snus and work to ensure that citizens continue to have the opportunity to choose the least harmful way to use nicotine. Our negotiators are also welcome to raise the issue of the risks to public health of having too many do-gooding bureaucrats in DG SANTE.”
The news has left many angry, with calls for “SWEXIT” if the proposal passes—meaning, those against the measure are calling for Sweden to leave the EU if the ban passes.
October 4, 2023