Author: Marissa Dean

PMI Considering Selling Stake in Vectura

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Philip Morris International is considering selling a stake in Vectura, according to Reuters.
PMI is looking to bring on a partner to help operate and grow Vectura’s drug manufacturing outsourcing business, according to company statements to the Wall Street Journal. PMI could possibly sell a majority or a minority stake. Other options are a licensing or royalties deal or a commercial partnership.
In 2021, PMI bought Vectura for $1.36 billion as part of the company’s long-term plan to transition to a “broader healthcare and wellness” company. PMI also acquired Fertin Pharma and OtiTopic in the same year.
“We aim to accelerate Vectura’s growth and will be exploring potential partnerships to enhance its contract development and manufacturing organization business,” Chief Financial Officer Emmanuel Babeau said in July, noting that the company remained committed to developing the wellness healthcare segment.
September 21, 2023
PMI Gets Science-Based Targets Validation

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The Science Based Targets initiative (SBTi) has verified Philip Morris International’s Forest, Land and Agriculture (FLAG) emissions reductions targets.
According to the Science Based Targets initiative, “SBTi’s FLAG guidance provides the world’s first standard method for companies in land-intensive sectors to set science-based targets that include land-based emission reductions and removals. The guidance enables companies to reduce the 22 percent of global greenhouse gas emissions from agriculture, forestry and other land use.”
PMI maintains its science-based target to reach net-zero emissions for scopes 1, 2 and 3 by 2040, which was validated by SBTi in July 2022. As part of its ongoing net-zero commitment, PMI has now pledged to reduce absolute scope 3 emissions related to forestry, land and agriculture by 33.3 percent by 2030 in line with SBTi best practice. PMI aspires to reduce all other scope 3 emissions by 27.5 percent within the same timeframe. PMI’s 2040 net-zero target remains in line with a 1.5-degree scenario, aligned with leading edge target-setters across business industries. PMI outlines comprehensive plans to achieving net-zero by 2040 in its Low-Carbon Transition Plan.
“We renew and continue our effort to direct our activities toward decarbonizing our value chain and are committed to aligning our work with relevant updates on international methodologies, such as the Science Based Targets for Nature (SBTN) and guidance from the SBTi on forest, land, and agriculture science-based targets,” said Scott Coutts, senior vice president of operations at PMI.
“The SBTi’s science-based targets on forestry, land use, and agriculture will become the gold standard for companies within the agricultural sector to accelerate emissions reductions, and we are pleased to be early adopters,” said Jennifer Motles, chief sustainability officer at PMI. “The SBTi’s validation demonstrates that our targets are rooted in science and aligned with the Paris Climate Agreement’s goal to keep global warming to the 1.5 degrees Celsius threshold that is considered the limit beyond which climate-related impacts will be catastrophic.”
The Science Based Targets initiative is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050. The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature and is one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
September 21, 2023
Turkiye Expands Ban on Selling Tobacco

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Turkiye has expanded the scope of its ban on serving and selling tobacco and alcohol products, according to Xinhua News Agency.
Sales of tobacco products and alcoholic beverages are banned on all premises of health, education and cultural and sports facilities. The ban does not apply to points of sale in accommodation, recreational and camping areas, however.
September 21, 2023
Cyprus Government to Ban Flavored HTPs

Image: Arid Ocean
The Cyprus government is moving to ban the sale of flavored heated-tobacco products (HTPs) following the Ministerial Council’s decision to adopt the relevant European legislation, according to In-Cyprus.
HTPs still allowed on the market will have to apply special warning labels and images to packaging, which will align the packaging with that of conventional cigarettes.
The aim of these changes is to “harmonize national legislation with European directives, as today’s Ministerial Council approved an amendment to regulations regarding the withdrawal of certain exemptions for heated-tobacco products.”
The council decided on the “extension of the ban on the sale of tobacco products with characteristic aroma/flavor or containing aromatic substances in any of their ingredients and on heated-tobacco products.”
“It was also decided to include verbal warnings/notifications about the harmful effects of smoking on the packaging of heated-tobacco products. These warnings will be accompanied by deterrent images.”
“In the legislation for smoking control, established in 2017, these products were exempted, and the sale of conventional cigarettes and rolling tobacco that contained aromatic substances in their ingredients was prohibited,” said Health Minister Popi Kanari. “With these regulatory amendments, the sale of heated-tobacco products containing aromatic substances in any of their ingredients is prohibited beyond conventional cigarettes and rolling tobacco.”
“The amendment does not apply to vaping products that contain liquid but only to the category involving heated-tobacco products in which cigarettes with aromatic substances are placed,” said Kanari.
September 21, 2023
BAT Plants Flowers to Address Litter

Image: Marquicio
BAT Rothmans, the Korean unit of BAT, has started a flower planting campaign called “Kkot BAT” to help prevent litter and cigarette butts in alleys.
“Kkot” translates to “flower” and “BAT” translates to “plot;” the campaign is placing flowerpots or flowerbeds in neighborhoods suffering from litter and illegal waste disposal.
BAT Rothmans has secured partnerships with nongovernmental organizations with close relationships to local communities.
“Our Kkot BAT campaign is a meaningful campaign in which companies join hands with the local community for environmental solutions,” said Kim Eun-ji, the country manager of BAT Rothmans. “We will continue to give positive influence on neighborhoods with environmental, social and corporate governance efforts.”
BAT Rothmans signed a memorandum of understanding with the Korean National Council for Conservation of Nature Seoul branch in June and planted its first flower garden in Jung-gu, Seoul, near BAT Rothmans’ headquarters.
Following its first campaign, BAT Rothmans will plant about 20 flower gardens all over Seoul, with plans to expand its influence to Gwanak-gu, Dobong-gu and Nowon-gu by the end of the year.
September 20, 2023
Malawi Commits to ‘Decent Work’

Image: Tobacco Reporter archive
Malawi’s government has committed to ensuring that there is “decent work” for tobacco sector employees, according to Malawi24.com.
Hlalerwayo Kelvin Nyangulu, labor commissioner, made the statements during a workshop on strengthening knowledge of labor laws, issues and compliance. “In 2021, the employment act was amended, and we actually abolished tenants labor in Malawi,” Nyangulu said. “So, (the) government is really committed to ensure that we have decent work in the tobacco sector.
“What is important now is that a decision has been made, a law has been enacted, so what is happening is that as I speak, tenants labor is abolished in Malawi. As you may know, tenants labor was providing fertile ground for child labor; it was also providing fertile ground for forced labor; now that it is abolished, that’s why we are talking about developing standard contracts that will define the relationship between employer and the worker in the tobacco sector,” said Nyangulu.
Currently, the push is for tobacco workers to be paid monthly wages, according to Nyangulu. “You see, tobacco is produced by smallholder farmers and large estate owners. We have seen that some farmers are complaining that they cannot afford to pay the monthly wages, but since we have the law, we just need to find ways how these farmers can be empowered so that they comply with the law.”
“What has prompted us to do this is that as ECAM [Employers Consultative Association of Malawi] under ILO, we carried out a training needs assessment, and one of the things that was highlighted there was that many companies or personnel companies are not aware of international labor standards,” said George Khaki, executive director of ECAM. “Actually, it was 62 percent of them who indicated that they were not aware of international labor standards.”
“So we thought this was a good platform for us to bring the knowledge on international labor standards today, but we are also trying to promote the use of standard contracts; we know that tenants labor was abolished in 2021 in the employment act, which means there will be normal employment relationship for players in the tobacco (sector), and to facilitate that, we are developing a standard contract that can be adopted and be used by the majority of players that do not have capability to develop contrasts,” said Khaki.
September 19, 2023
FDA Seeks Nominations for TPSAC

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The U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) is requesting nominations by Oct. 11, 2023, for a nonvoting representative of the interests of the tobacco manufacturing industry to serve on the Tobacco Products Scientific Advisory Committee (TPSAC). Individuals may self-nominate or be nominated by any interested person or organization.
In addition, the CTP is seeking any industry organizations interested in participating in the selection of this TPSAC nonvoting representative.
Nomination materials for prospective TPSAC candidates and letters from industry organizations interested in participating in the selection process should be sent to the CTP by Oct. 11, 2023. Please see the Federal Register notice for further details on the nomination and selection procedures.
TPSAC advises the CTP in its responsibilities related to the regulation of tobacco products. The committee reviews and evaluates safety, dependence and health issues concerning tobacco products and provides appropriate advice, information and recommendations to the FDA commissioner.
September 18, 2023
Victoria Harker Joins PMI Board

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Philip Morris International appointed a new member, Victoria Harker, to serve on the board of directors, effective Jan. 1, 2024.
Harker is an experienced U.S. public-company chief financial officer, having served in the role with three different companies, and she has been involved in significant corporate transformations in the consumer, industrial and utility sectors for over 25 years. She is a high-energy, action-oriented, strategic executive who has worked at a significant scale, most recently as executive vice president and chief financial officer of TEGNA Inc., a global media and digital communications company, a position she will step down from effective Dec. 31, 2023. Prior to this, she served as executive vice president, chief financial officer and president of global business services of The AES Corporation, a global power company. She has served as a nonexecutive member of the boards of directors of two large and complex U.S. public companies, Huntington Ingalls Industries and Xylem Inc., since the time of their respective spinoffs. Harker also serves as the audit committee chair for Huntington Ingalls Industries and as the compensation committee chair for Xylem Inc. She is vice chair of the State Council of Higher Education for Virginia, a member of the University of Virginia Health System board and was previously a member of the University of Virginia board of visitors.
Andre Calantzopoulos, PMI’s executive chairman, commended Harker on the appointment, and said in a statement, “We are delighted to welcome Victoria to the PMI board of directors. Her broad finance and business experience will further strengthen and diversify the capabilities of our board in successfully guiding our company through its ambitious and highly promising journey toward a smoke-free future and beyond.”
September 18, 2023
KT&G Wins Admin and Security Award

Image: KT&G
KT&G received the Minister of Public Administration and Security Award at the 12th Korea Knowledge Awards organized by the Ministry of Public Administration and Security.
The Korea Knowledge Award is the nation’s highest accolade in the field of knowledge, awarded to government and public institutions and private enterprises that have shown outstanding results in knowledge administration and management, leading to government innovation and enhanced corporate competitiveness. KT&G was recognized for its systematic knowledge management accomplishments, including establishing a dedicated intellectual property division and developing intellectual property processes, distinguishing itself as the sole private enterprise recipient of the award.
KT&G has concentrated on strengthening its proprietary technology development capabilities to swiftly respond to an ever-changing market. The company has been operating a dedicated organization for intellectual property, constructing a unique intellectual property computer system for effective management and promoting in-house research and development as well as technological innovation by uncovering and nurturing employees’ innovative business ideas through initiatives like Patent Week, leading to patent applications.
KT&G’s consistent drive in knowledge management led to a significant increase in intellectual property creation, resulting in domestic patent applications surging from 82 in 2017 to 444 in 2022—a more than 440 percent increase. Domestic and overseas applications also saw a monumental rise, starting from 27 in 2017 to 1,065 in 2022—an increase of over 3,800 percent. Currently, the total registered trademarks stand at 7,132.
Owing to these achievements in intellectual property creation, KT&G was honored with the Prime Minister’s Award at the 56th Invention Day event hosted by the Korean Intellectual Property Office in 2021, recognizing its contribution to protecting national industrial technology and advancing the intellectual property system. Moreover, in the 2021 South Korean Corporate European Patent Index released by the European Patent Office, the company ranked third, following Samsung and LG. This year, KT&G was also chosen as one of the Top 100 Global Innovative Momentum Companies by LexisNexis, a global intellectual property solution company.
Cho Seong-moon, the head of KT&G’s R&D division, stated, “Based on our technological competitiveness and rapid adaptability to the ever-changing market, KT&G will continue to grow into a global ‘top-tier’ enterprise through the continuous enhancement of knowledge management.”
September 18, 2023
FDA: Premium Cigars Exempt from User Fees

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The U.S. Food and Drug Administration will not assess user fees for premium cigars in the fourth quarter of fiscal year 2024, the agency told manufacturers and distributors, according to Halfwheel.
The statement follows last month’s outcome of Cigar Association of America et al. v. United States Food and Drug Administration et al., which led to deeming regulations not being applied to cigars that meet the definition of “premium cigar.”
User fees help fund the Center for Tobacco Products. The amount of user fees is set by Congress; companies that import or manufacture cigarettes, roll-your-own products, snuff, chewing tobacco, cigars or pipe tobacco are assessed fees, and individual shares are calculated based on excise taxes paid on each product compared to the total amount of excise taxes paid by all products.
The FDA, however, does not know whether a cigar company is selling premium cigars, nonpremium cigars or a mixture of both. Due to this, the FDA is asking companies to submit dispute letters within 45 days of the assessment of user fees. The agency is allowing companies the option of either paying the full amount of user fees with the intent of getting refunded for user fees assessed to premium cigars or paying what the company believes it will owe for nonpremium cigars.
The FDA has stated that it will introduce a better process going forward, but it has not released information regarding what that will look like.
There was no mention as to whether the FDA plans to refund user fees paid for premium cigars from August 2016 to the second quarter of fiscal year 2023.
September 15, 2023