Author: Marissa Dean

Court Sets Wrongful Death Timeline

Image: mehaniq41 | Adobe Stock
The Supreme Judicial Court of Massachusetts ruled that family members of a deceased individual cannot file wrongful death suits if the death occurred more than three years after the injury that caused the death, reports Reuters. This ruling upholds the dismissal of claims against Philip Morris USA and R.J. Reynolds Tobacco Co.
Under Massachusetts law, according to Justice David Lowy, wrongful death claims are “derivative” of personal injury claims that the deceased could have brought in life. If the three-year statute of limitations has run out at time of death, family members have no wrongful death claims.
This latest decision follows two lawsuits, one against Philip Morris USA in 2017 (Fabiano v. Philip Morris USA Inc and others, No. SJC-13282) and one against R.J. Reynolds in 2016 (Fuller v. R.J. Reynolds Tobacco Co and others, No. SJC-13346). Both were brought by the wives of men who became sick and died after lifetimes of smoking. The lawsuits accused the companies of breach of warranty, negligence and conspiracy. These wrongful death claims were dismissed by different trial judges, who stated that both men would have been time-barred from bringing their own claims when they died, meaning their family members were not able to file wrongful death claims.
The Supreme Judicial Court agreed to hear both cases. The court previously decided that wrongful death claims are derivative of the deceased’s claims but had not addressed how that would affect the statute of limitations, according to Lowy’s opinion.
The statute of limitations for the deceased’s underlying injury claims determines whether surviving family can bring a wrongful death claim, according to the language of the Massachusetts wrongful death law.
Lowy wrote that the decision “in no way changes what has long been true of persons suffering from serious injuries,” in a footnote addressing an argument by plaintiffs that the decision creates a “fundamental unfairness” by forcing sick individuals to bring lawsuits while they are suffering or forfeit their heirs’ rights to recovery.
“Once those injuries are knowable, plaintiffs must assert their rights within a specified period of time or lose their ability to recover for their injuries,” Lowy wrote.
July 7, 2023
Supreme Shares Soar After Elf Bar Agreement

Image: Tobacco Reporter archive
Shares in the U.K. vaping company Supreme rose 5 percent after the company announced it is now the “master distributor” for two leading U.K. vaping brands—Elf Bar and Lost Mary, reports City AM.
The London-listed company expects the partnership to generate revenues of £25 million ($36.06 million) to £30 million over the next fiscal year ending March 2024.
The news comes amid a political crackdown on vape products—especially for those underage.
Sandy Chadha, CEO of Supreme, said the agreement will allow the group to “fully leverage its unique technical, regulatory, compliance and quality assurance capabilities within the vaping sector.”
“We have seen a hugely positive response from both established and new retailers who view Supreme as an ideal partner to supply these products across the U.K.,” Chadha added.
Supreme says its strong market presence, distribution network and compliance capabilities provide Elf Bar and Lost Mary with a “ready-made blueprint” distribution strategy.
The company will report sales of the newly added brands separately from its existing vaping category, which includes Supreme’s proprietary 88Vape brand.
Supreme nearly doubled revenues to £76.1 million this year, while posting an £8.6 million increase in gross profit.
July 7, 2023
Investors Buy 22nd Shares ‘Above Market’

Image: Tobacco Reporter archive
22nd Century Group has entered into definitive agreements with certain investors for the purchase and sale of 778,634 shares of common stock and warrants at a price of $3.80 per share in a registered direct offering priced above market.
The company expects the offering to generate gross proceeds of $3 million before deducting the placement agent’s fees and other offering expenses payable by the company. 22nd Century intends to use the net proceeds from this offering for the continued commercial expansion of its VLN reduced-nicotine content tobacco cigarettes in additional markets, working capital related to its commercial activities and general corporate purposes.
“We are encouraged by the confidence investors have demonstrated in our path forward through the participation in our latest offering of securities, which corresponds with the inflection point we are experiencing in critical aspects of the business,” said CEO James A. Mish in a statement. “In turn, we are pleased to have strengthened our capital position, deliver[ed] continued operational momentum and taken successful steps toward regaining compliance with Nasdaq listing standards.”
The Special Equities Group, a division of Dawson James Securities, acted as the sole placement agent for this transaction.
As part of the transaction, the company agreed to issue to the investors warrants to purchase up to 1,557,268 shares of common stock. The warrants have an exercise price of $3.80 per share and are exercisable six months from the date of issuance. The closing of the offering is expected to occur on or about July 10, 2023, subject to the satisfaction of customary closing conditions.
July 6, 2023
Istanbul Bans Public Shisha Smoking

Image: puhhha | Adobe Stock
Istanbul has banned shisha smoking in public places in order to mitigate risks of forest fires and other potential hazards, reports Xinhua News.
“Smoking shisha will be strictly prohibited in various locations, including beaches, forests, recreational areas and parks throughout Istanbul,” wrote Governor Davut Gul on Twitter. “However, it is important to note that licensed shisha lounges operating outside of these designated areas are not affected by this ban.”
July 6, 2023
Seoul Mulls Higher Fines for Cigarette Litter

Photo: sayan
The Seoul metropolitan government is considering raising fines for cigarette butt litter from KRW50,000 ($38) to as much as KRW200,000, according to Korea JoonAng Daily.
Currently, the city government fines KRW50,000 regardless of the number of littering violations. The proposed new fine would increase based on number of violations: KRW100,000 for a first violation, KRW150,000 for a second violation and KRW200,000 for a third violation.
Cigarette filters have been noted as one of the major causes of flooding in the area as the litter blocks the road drainage systems. The flood level doubles if two-thirds of the height of the drainage gets flooded, according to the National Disaster Management Research Institute. If the drainage is completely submerged, the flood level rises six-fold and flooding occurs three times more quickly.
“Drainages at high-risk areas, including those that have been flooded during the monsoon season, should be prioritized in being taken care of,” said Lee Young-joo, professor of fire prevention science at the University of Seoul. “Measures to offer incentives to those who voluntarily clean up road drainages should also be drawn up.”
Increased fines are also expected to help prevent fires due to smoking. Last year, 6,289 fires in the city were due to smoking, according to the Seoul Metropolitan Fire and Disaster Headquarters.
The city government will propose the fine increase to the Environment Ministry.
July 6, 2023
Shisha Producer Calls Banks to Pitch for IPO

Image: Дмитрий Скорина | Adobe Stock
Advanced Inhalation Rituals (AIR), a Dubai-based producer of shisha molasses, has invited banks to pitch for roles in its planned initial public offering (IPO), which is expected next year, according to anonymous sources with knowledge of the matter, which is not public, reports Reuters.
AIR has not decided on a listing venue yet, but Abu Dhabi and Dubai are among the options.
Majority owner of AIR, Britain’s Kingsway Capital, is looking to follow a dual-track process where a seller pursues a sale and an IPO simultaneously. Rothschild and Co. is acting as financial advisor to AIR.
Last month, Kingsway Capital started meetings with tobacco firms such as BAT and Japan Tobacco.
July 5, 2023
22nd Announces Reverse Stock Split

Image: Travis | Adobe Stock
22nd Century Group will conduct a reverse stock split of its outstanding shares of common stock, par value $0.00001 per share, at a ratio of 1-for-15 effective as of 12:00 a.m. Eastern Time on July 5, 2023. The reverse stock split is intended for the company to regain compliance with the minimum bid price requirement of $1 per share of common stock for continued listing on Nasdaq.
“As a transformative plant science company, being listed on the Nasdaq Stock Market places 22nd Century among the top innovation-driven companies of the world. The board decided to take action now to resolve our compliance with the Nasdaq listing standards, providing investors with greater assurance around this important asset even as we continue to advance our mission focused on plant biotechnology and health improvement,” said Nora Sullivan, chair of the board, in a statement.
“As [we] move into the second half of 2023, we are advancing the rollout of our VLN products in the three largest state markets as we further expand our commercial footprint,” said James A. Mish, CEO. “We also expect to benefit from our new extraction capabilities and the return of distillate production in our hemp cannabis business, plus expansion in our new multi-year vertically integrated license and distribution agreements with two major consumer brands. Combined, we are tracking to our full-year outlook of a record $105 [million] to $110 million in sales.”
22nd Century common stock will begin trading on a reverse stock split-adjusted basis at the opening of the Nasdaq Capital Market on Wednesday, July 5, 2023. Following the reverse stock split, the common stock will continue to trade on Nasdaq under the symbol “XXII” with the new CUSIP number, 90137F202.
In connection with the reverse split, the company will reduce its authorized number of shares of common stock at that same ratio as the reverse split, resulting in 33,333,334 authorized shares of common stock (from 500,000,000 authorized shares). No fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded up to the nearest whole number of shares of common stock. In addition, the reverse stock split will apply to the common stock issuable upon the exercise of the company’s other outstanding securities, with proportionate adjustments to be made to the exercise prices and number of derivates securities, and under the company’s equity incentive plans.
The reverse stock split will consolidate the number of issued and outstanding shares of the company’s common stock to approximately 15.9 million.
July 5, 2023
Dissecting Their Drives
Researchers, directors, analysts, public health experts and executives should realize that their lives may be very different from those of the consumer they’re studying. | Photo: Taco Tuinstra
To help nicotine users move down the risk continuum, it is crucial to understand consumer motivations.
By Jessica Zdinak
What drives change? And by change I don’t mean a short-term, temporary change but a long-term behavior change that alters entire lives. Most habits take around 14 days to “stick,” but behavior change that comes with an addiction works differently. This is what we face as scientists, public health experts, government officials, manufacturers and representatives in the nicotine and tobacco industry. Many of us want to save lives; some of us want to develop products for consumers to enjoy all while making a living and supporting our families. No matter what perspective we come from, I think we can all agree that taking a combustible cigarette smoker from cigarettes to an alternative, potentially reduced harm product often seems like a herculean task.
To some, it seems like an almost impossible task given the intricacies of product development, including the iterative process of prototypes, testing, retesting and validation of new products. This, combined with the extensive resources and time needed in the U.S. to get a new nicotine/tobacco product authorized by the Food and Drug Administration, leaves many people awake at night wondering if success is possible. I will argue that it takes many small steps by many people to drive success in today’s industry. And it starts with our consumer—the smoker.
It’s essential that we recognize every day how our lives as researchers, directors, analysts, public health experts and executives look nothing like the consumer we’re studying. Whether in the innovative and product development space, market research, regulatory research or FDA application submissions, if you don’t remember this, then you may find yourself wondering why you and your company aren’t as successful as you’d like.
At the Applied Research and Analysis Company (ARAC), before our team begins daily work activities, we go outside of our own lives, thoughts, feelings and behaviors and remind ourselves of the following:
We are not our consumers. We have biases and perspectives from a life likely not lived by our consumers. Get out of our heads and get into theirs.
It may benefit you and your company to learn one area of psychological science that helps you to understand what drives your consumers’ behavior and most importantly—how to change it. With science exponentially advancing over the years, it’s easy to forget and leave behind the most basic scientific principles of human behavior that got us to such an advancement. As a cognitive behavioral scientist, I see too many phenomenal researchers who look to the most recently published literature but fail to remember the science that this literature was built upon.
Some of the most basic scientific principles of behavior change revolve around a stimulus-response relationship, also known as operant conditioning (Skinner, 1938). If you are a parent, you are likely to have heard some of this terminology before when referring to allowances for chore work, spanking for bad behavior, screen time for positive behavior, etc. Unfortunately, a lot of this terminology gets misused and is therefore misunderstood. Fortunately, however, the basic principles of this behavior change model are both still relevant and one of the most robust and successful ways to change behavior. We can think of this as a box with quadrants with two main variables:
The first variable is the actual behavior. Before applying this model, we have to ask ourselves, do we want the specific behavior in reference to increase or decrease in its occurrence. If we want to increase a desired behavior, we call this “reinforcement,” and if we want to decrease the undesired behavior, we call this “punishment.”
The second variable is the stimulus being applied to the individual, animal, etc. If we are applying a stimulus (giving something to the individual, animal, etc.), we call this “positive,” and if we are removing a stimulus (taking something away from the individual, animal, etc.), we call this “negative.”
When we combine these two variables, we get four outcomes that look like this:
Positive reinforcement = applying a stimulus to increase a desired behavior
Negative reinforcement = removing a stimulus to increase a desired behavior
Positive punishment = applying a stimulus to decrease an undesired behavior
Negative punishment = removing a stimulus to decrease an undesired behavior

Putting yourself into a smoker’s life, which of these four scenarios do you think would be most beneficial to changing their behavior? Does it seem appropriate to focus our efforts on the undesired behavior (smoking), or would it seem more helpful to focus efforts on a desired, more “positive” behavior, such as walking or exercising or the use of a potentially less harmful product? Some research has examined this (Borkowski and Leal, 2018), showing how policies and initiatives aimed at punishment (changing the undesired behavior through applying or removing a stimulus) may be ineffective and potentially misguided.
The catch here is that for this behavior change model to work, researchers and companies need to identify what the individual views as satisfying and pleasurable versus unsatisfying and uninteresting. It is likely that companies already apply some aspects of this in their regulatory, product and business strategies, but without a team of experts focused on this process, it is likely that they will come up short of their goals. It’s impossible to know what is satisfying versus unsatisfying to every single smoker in the world, but there are research methods, designs and analyses that are proven to identify and describe subpopulations, or “pockets,” of people (in experimental psychology, we call them “interaction effects”) that would all be in majority agreement of what is satisfying to them versus unsatisfying. Developing individual products to target each of these “pockets” of smokers would lead a company to be the first to have a consumer–focused portfolio of nicotine/tobacco products that encompasses the entire harm reduction continuum.
Of course, we know that there are other obstacles to be faced in this industry. We know that most of the public has incorrect perceptions of risk associated with products along the risk continuum. We know the challenges of having reliable access to all consumers, particularly those most vulnerable. Without federal government research experience, many people have questions on how to work with the regulator versus against them. Finding the right partnership within and outside your organization to help with these complexities is key to succeeding in this complex industry. Your consumer is a person with inward thoughts and feelings that drive their outward behavior—if you focus on understanding these aspects, you can’t go wrong. And who knows, you may develop that portfolio of products that puts an end to smoking!
Jessica Zdinak is the owner and chief research officer of Applied Research
and Analysis Co.
July 1, 2023
Peddling Trivia

They find it not unpleasant. (Photo: Colleen Williams)
A Japanese government survey ‘reveals’ that nonsmokers find smoke unpleasant while smokers like it.
By George Gay
According to a recent government of Japan survey, about 83 percent of Japanese people aged 18 and older find tobacco smoke unpleasant. The Cabinet Office survey, reported by Kyodo News, questioned 3,000 people online and via email during August and September last year and resulted in 1,556 valid responses. Slightly more than 56 percent of respondents said they found tobacco smoke unpleasant while about 26 percent reported they found it “somewhat unpleasant.”
Such a survey probably cost the government relatively little, but, still, these are hard times, and I could have come up with the figure of 83 percent for free without bothering 3,000 people and while causing much less environmental degradation than the survey’s computer-based energy use would have caused and will continue to cause through the electronic storage of its results in multiple versions and places. You see, just a couple of clicks on the internet will turn up the fact that the smoking prevalence in Japan is about 17 percent.
I’m certain that I don’t have to explain my thinking here, but, just in case, let me underline it by saying the survey found that about 75 percent of men found tobacco smoke unpleasant while about 89 percent of women did so. And do you know what? The smoking incidence among men is about 27 percent while that among women is about 8 percent.
Let the heralds sound the trumpets! Nonsmokers find tobacco smoke unpleasant while smokers like it or are indifferent to it!
Or perhaps I should say that nonsmokers and nonvapers find smoke and heat-not-burn (HnB) vapor unpleasant. Japan is held up as an example of good practice when it comes to helping smokers switch to less risky forms of tobacco/nicotine consumption because, while its laws do not allow the use of electronic cigarettes that deliver nicotine, HnB devices are permitted and have gained much ground on the Japanese market. It is true that the survey report mentions only tobacco smoke, but I suspect that this is because many people are heavily into deeming things when they feel it convenient to do so. Smoke is vapor, and vapor is smoke, while a “smoke-free” country might have a smoking incidence of 5 percent and, in theory, a vaping incidence of 100 percent, even though vapor is considered to be smoke. You know the sort of thinking.
When times are hard, or even when they are not, it is surely difficult to justify a government’s expending resources on such a survey. Is it possible that anybody believes that anything meaningful can be discerned from asking 0.002 percent of Japan’s population whether tobacco smoke, as they perceive it, is unpleasant or somewhat unpleasant? Is there a difference even? Surely, if something is unpleasant, it is also somewhat unpleasant, and if it is somewhat unpleasant, it is also unpleasant. Remember, we are asking people with presumably varying perceptions to distinguish a degree of unpleasantness within a single entity; we are not asking them to compare different entities.
In the report I saw, it was not even clear to what unpleasant referred. Is it the look of the smoke? After all, tobacco smoke is one of the few air pollutants that is visible, and, if I am correct in assuming that vapor is deemed to be smoke, the sight of vapor would offend some. There are quite a lot of people, I have noticed, who become overwrought when vapers flaunt their exhalations. More likely, however, it is the smell of the smoke, but this would seem to reduce the value of the survey further. Haven’t we known for years the answer to the general question about whether Japanese people find tobacco smoke unpleasant? Isn’t it the case that the Japanese tobacco market is one of just a few where successful efforts have been made to sell cigarettes partly on the basis that they give off reduced tobacco smells? At one time, they were referred to in Japan, and might still be, as LSS (low smoke smell) cigarettes.
But these surveys are taken seriously—to what I would regard as almost ludicrous levels. The Kyodo report explained how the previous survey into attitudes to tobacco smoke, conducted in 2019, discovered that 78 percent found it unpleasant while warning that the results from 2019 and 2022 could not be compared because of changes made to the survey methodologies. Does any of this matter? Is there a need to know this stuff that outweighs the environmental harms being caused? When desktop printers first arrived on the scene, it became common for documents that appeared on computer screens to contain notes asking the recipients to think before they printed them. This was sensible, but now, has the time come to impress on people whether there is a need to carry out the research they are contemplating and whether it is necessary to see the results of that research disseminated and stored?
One of the major current debates is that around artificial intelligence (AI), often with conclusions being drawn without first defining what sort of AI is under discussion. As I understand things currently, I would welcome the takeover of humanity by AI if that AI were powered in all aspects by renewable energy, capable of self-replication and movement, had sensory systems at least as varied and efficient as those of humans and started its intellectual forays with no information inherited from its creators; or, if it were not possible to kick it off with no information, if it were supplied only with the three-volume Principia Mathematica on the foundations of mathematics by Alfred North Whitehead and Bertrand Russell.

he effect of air pollution on people in Tokyo is equivalent to their smoking from 2.68 cigarettes to 4.25 cigarettes a week. (Photo: wooooooojpn)
Time to Move On
On the other hand, it would be a matter of deep concern to me if the AI that took over for humanity was not powered by renewable energy, not self-replicating, not capable of movement, had no or limited sensory systems and had its intellectual arteries clogged with the sorts of trivia—and here I would include the results of the survey under discussion—that is, in large part, the sum of the intellectual history of the human race. We, or our replacement AI, cannot move forward while dragging this history behind us. It would be like trying to replace an old and discredited product, such as a cigarette, with a proven, technologically advanced product, such as a vaping device, while shaking our heads and calling for more historical research into all the problems and tragedies that the old product caused previously. Let us move on. As far as is possible, let us start afresh.
Don’t get me wrong, I’m not picking on the government of Japan; it’s just that I was asked to write about the country and, in doing some reading, was intrigued by the story of the survey or, at least, an aspect of it. I was about to pass over the story, in fact, when my mind latched onto the unpleasant/somewhat unpleasant issue. Such efforts as were put into the survey in question are wasted everywhere, and such waste is not limited to governments. The amount of money wasted on pointless research must be astronomical. We have known for decades that smoking is bad for you and that the main offense given to nonsmokers by smokers is not the health risks associated with secondhand smoke but its smell, mainly the lingering smell given off by ashtrays and garments worn by smokers.
That’s not to say that the survey conducted in Japan did not serve a useful purpose. It provided the government with the assurance that it could mobilize the tyranny of the majority. “Although the government in April 2020 imposed a general ban on smoking in indoor spaces used by multiple people, nearly half of respondents answered they want stricter measures to stop secondhand smoking,” Kyodo reported. And of those wanting further restrictions, about 60 percent wanted them introduced in outdoor locations, such as streets and parks.
Now I don’t want to cause these people any unnecessary anxiety, but, according to earth.org, the biggest sources of air pollution in Tokyo, for instance, have nothing to do with tobacco smoke. They are down to vehicle emissions and factory fumes. The worst and most widespread form of this pollution is fine particulate matter, PM2.5, that gets deep into lungs and has deleterious health effects similar to those caused by cigarette smoking, including increased respiratory and heart disease occurrences.
Apparently, the effect of air pollution on people in Tokyo, depending on where in the city they operate, is equivalent to their smoking from 2.68 to 4.25 cigarettes a week. Now I would challenge any resident of Tokyo to smoke the equivalent of 2.68–4.25 cigarettes solely through the inhalation of secondhand smoke while out in the street or in a park. They would be pushing it to smoke the equivalent of a measurable fraction of a cigarette. So, if the government is worried about the health of Tokyo’s people, it should, rather than conduct surveys on people’s attitude to tobacco smoke, take action on … well, there is only so much free advice I am willing to give.
Navel Gazing
Of course, if you really want to waste your effort on surveys, there is no better way than navel-gazing. And the Japanese Cancer Association (JCA), while undoubtedly doing much good work, is also keen on conducting surveys of its own members. In February last year, as part of a piece entitled “Trends in smoking prevalence and attitudes toward tobacco control among members of the JCA 2004–2017,” it said that recently, use of new tobacco products, including HnB tobacco, had become prevalent among young people. “Tobacco industries advertise the lower risk of the product compared with cigarettes; however, long‐term risks and other potentially fatal risks are unknown,” it said. “To fight against a new enemy of tobacco control, our academic society should boost activities to study the risk of new tobacco products.”
Note that while many people, including those at the hard-to-convince U.S. Food and Drug Administration, believe that at least certain HnB devices can provide smokers with alternatives to traditional cigarettes that are less risky to consume than cigarettes, and while the JCA admits that the long-term effects of consuming HnB products are unknown, it has declared them an enemy of tobacco control.
In other words, we seem to be up against that form of “science” where the result is deemed, and the evidence sought to establish that result. This would be chilling even if it were confined to Japan, but the JCA has wider ambitions. “As a leader in the cancer research community, the JCA should take action to deal with the control of new tobacco products globally,” it said.
George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.

July 1, 2023
Waste Not, Want Not

Photos: Taco Tuinstra
Atlas Agri wants to help Zimbabwe achieve its volumes by reducing post-harvest losses.
By Taco Tuinstra
Anybody who has worked in the trade knows that leaf tobacco can be a hairy business. Changing weather patterns, mounting regulations and cutthroat competition keep merchants on their toes. But few dealers will have experienced the industry’s hirsute dynamics as intimately as the people that built Atlas Agri. Not only did its management team get the company up and running in record time; they also vowed to refrain from shaving until they had bought 20 million kg.
The idea for Atlas Agri arose when a group of like-minded tobacco veterans sat down and agreed that the time was right to establish a new company. Tobacco was in short supply globally, partly due to miscalculations of how Covid-19 would impact cigarette consumption (it went up instead of down). In Zimbabwe, the cabinet had just approved the Tobacco Value Chain Transformation Plan, which, among other things, calls for a significant crop boost. “There was lots of opportunity,” says Atlas Agri Managing Director Alex Mackay, who previously served as CEO of leaf operations at Premium Tobacco International. “It just made sense.”
Atlas Agri incorporated in June last year—just in time to participate in Zimbabwe’s 2022–2023 crop cycle—and went to work immediately. The company set up an office and tobacco receiving/storage area in Harare in the cavernous halls of the Boka Tobacco Floors off of Simon Mazarodze Road. With an eye on future expansion into additional markets, Dubai made sense as the seat of Atlas Agri’s global headquarters.
The startup process was made easier by the facts that the company’s leaders knew each other from previous engagements and had extensive experience in the tobacco business. In addition to Mackay, the management team includes Geoff Martin, who oversees finance and administration; Peter Kockott, who leads the agronomy department; and Eric Le Patourel, who is in charge of operations. International sales are coordinated from Dubai by Global Chief Finance Officer Michael Rust and Global Sales Executive Albert Edwards, whose career includes senior positions at Premium Tobacco, Imperial Brands and Limbe Leaf Tobacco Co.

A hairy business: Several members of the Atlas Agri team vowed to refrain from shaving until the company had bought 20 million kg.

Brandon Palmer

Benjamin Edwards

Craig Dollar

Craig Bydawell

Dylan Jones

Ross Mackay

Jordan Allatt

Supporting Farmers
Atlas Agri’s experience also helped it quickly recruit farmers. Many growers remembered the company’s representatives from their roles at other leaf buyers, creating instant trust. Another factor driving growers’ enthusiasm, according to Kockott, was the fact that Atlas Agri offered them a well-thought-out package. Because most small farmers in Zimbabwe lack the means to finance their operations, contractors provide them with inputs ahead of the season and recover the cost after the tobacco has been grown. The system works if implemented carefully but also carries risks. In some cases, growers have been unable to repay their loans. Atlas Agri aims to prevent defaults by lending growers a practical input package without unnecessary fills and high-cost items. “It all comes down to debt bondage,” says Mackay. “Once you have a farmer who is less beholden to the contractor, he has a better chance of repaying his loan and to profit.”
The strategy paid off. Despite its relatively late start last year, Atlas Agri signed contracts more than 15,000 farmers. Once the season got underway, the company kept supporting its growers. “We did not just give them a contract and then waited six months to collect the product,” says Mackay. Traveling in four-wheel drive vehicles and on motorbikes, Atlas Agri’s agronomy team frequently ventured into the countryside to assist its contracted farmers with agronomic advice. Such trips were made not only by junior leaf technicians but also by upper management, allowing growers to interact directly with company officials whose rank may have kept them in the office if they had worked for other tobacco buyers. “That personal touch—that has been a strong point of our approach,” says Mackay, borrowing a slogan popularized by Souza Cruz in Brazil.

Due to inadequate infrastructure and other limitations, Zimbabwe’s small-scale growers lose up to 50 percent of their crops.
Reducing Field Losses
In addition to supporting its growers and serving its customers, Atlas Agri is eager to help Zimbabwe achieve the goals of its Tobacco Value Chain Transformation Plan. As Minister of Agriculture Anxious Masuka explained in Tobacco Reporter earlier this year (see “The Man Behind the Plan,” Tobacco Reporter, May 2023), the country aims to preside over a tobacco industry worth $5 billion by 2025. Part of that growth is to be achieved by moving beyond green leaf and processed tobacco into value-added products such as cut rag and cigarettes.
Opportunities for such expansion, however, depend heavily on the willingness of international tobacco firms to invest in Zimbabwe—a factor outside of the nation’s control. This means that much of the desired income will likely have to be realized by bringing more leaf to market. The transformation plan aims for a 300 million kg crop by 2025—70 million kg more than its farmers were expected to deliver this year.
One of the ways in which Atlas Agri hopes to boost production is by reducing growers’ post-harvest losses. Following a massive land reform program at the turn of the century, Zimbabwe’s tobacco sector is dominated by small-scale farmers. Whereas in 1998, the crop was produced by 1,500 commercial growers and fewer than 1,000 smallholders, the industry now comprises about 144,000 small farmers and between 300 and 400 commercial operations.
Unlike their commercial counterparts, who are heavily mechanized with tractors, irrigation systems and forced-air curing tunnels, the smallholders run barebones operations. Due to inadequate infrastructure and other limitations, Zimbabwe’s small-scale growers may lose up to 50 percent of their crops, according to the Tobacco Research Board (see “The Scientific Approach,” Tobacco Reporter, June 2023).
One of the major constraints is curing barn capacity. Many smallholders grow more tobacco than their barns can accommodate. Tobacco that ripens after the curing barn has filled up is often left to rot in the field. While this could be remedied by building more curing barns, Atlas Agri considers this a less-than-ideal solution for small growers. Erecting such structures, the company argues, will not only push farmers deeper into debt but also boost demand for wood as the fuel to cure tobacco and additional bricks, contributing to deforestation.
So instead of constructing additional curing barns, Atlas Agri is encouraging its contracted farmers to build inexpensive, natural air-curing systems, known in southern Africa as a “Chigaffas.” Already used to cure burley in many countries, a Chigaffa is a simple, inexpensive wooden structure with racks to dry tobacco and a roof made out of plastic tarp or thatch. “We say to our farmers, if your curing barn is empty, reap straight into the curing barn,” says Kockott. “But if your curing barn is full, instead of waiting for the barn to be empty, by which time your tobacco in the field becomes overripe, reap on the day you are supposed to and put it in the Chigaffa.”
The purpose of the Chigaffa is to alleviate pressure on the barn and prevent tobacco from sitting too long in the fields. “If you put overripe tobacco in the barn—by the time it is wilted and ready to fix color, it will have turned brown, so you have lost quality and yields,” says Kockott. Using a Chigaffa allows farmers to market tobacco that would otherwise be lost. Even if the Chigaffa leaf does not attract premium prices, the potential for additional volumes presents opportunity for additional income.
While some have expressed concern that the Chigaffa system will bring lower quality tobaccos to market, Mackay notes that those styles are in line with prevailing customer preferences. “Global demand for value and super-value styles currently exceeds that for top quality tobacco,” he points out. Another advantage: Using the Chigaffa reduces the time spent in the traditional curing barn by a few days, lowering wood consumption, thus contributing to sustainability—a fact that should appeal to international customers, who expect their tobacco to be grown according to strict environmental, social and governance requirements.
Convinced by the merits of natural air curing, the Tobacco Industry and Marketing Board endorsed the system earlier this year. “The introduction of this natural Virginia tobacco product is in line with the Tobacco Value Chain Transformation Plan,” the regulator wrote in a press note. “By producing more natural Virginia tobacco […] we believe the local tobacco industry will generate a wider range of qualities for customers on the global market, creating demand and encouraging investment for the ultimate longevity of the Zimbabwean tobacco industry.”
Just by reducing post-harvest losses, a small farmer could increase his or her volume by up to a quarter, according to Atlas Agri. If the entire smallholder sector optimized its operations, it would go a long way toward achieving the 300 million kg proposed in the transformation plan. “Think about it,” says Mackay. “Smallholders produced approximately 200 million kg out of this year’s 260 million-plus kg crop. If they can add a quarter to what they already deliver, the country will be quite close to the desired 300 million kg—without claiming a single additional hectare of farmland or increasing pressure on our woodlands.”

Even if the Chigaffa leaf does not attract premium prices, it still represents potential for additional income to the farmer.
Beyond Tobacco
In addition to boosting tobacco volumes, Atlas Agri is exploring complimentary crops, such as soya and cotton, to enhance farmer viability. Already, the company has provided its contracted growers with inputs for 700 hectares of soya. According to Mackay, diversification will not only improve farmers’ financial security but also rehabilitate their soils through better crop rotation. This in turn should ease the pressure from pests and disease, reducing the need for chemical crop protection agents, thereby creating a more sustainable product.
Atlas Agri has made tremendous progress since its incorporation last year. “We are starting to reap the fruits of our heavy lifting,” says Mackay. “It’s incredibly gratifying when you see farmers smiling because you know you have exceeded expectations.” When the business hit its 20 million kg milestone in May 2023, the company’s by now shaggy crew broke out the champagne, along with the razors, and took advantage of a rare opportunity to unwind—but only momentarily because it’s time already to start thinking about the next crop.
Like this season, the upcoming production cycle will throw up plenty of regulatory, environmental and competitive hurdles. If Atlas Agri’s first year of operation is any indication, however, the team members will overcome them with their trademark combination of passion, professionalism and persistence, ready to take each of the challenges on their freshly shaven chins.

What a difference 20 million kg makes: Upon achieving their buying target, Atlas Agri’s team paid a well-deserved visit to the barber.

Banjamin Edwards

Brandon Palmer

Craig Dollar

Craig Bydawell

Dylan Jones

Ross Mackay

Jordan Allatt

Taco Tuinstra is Tobacco Reporter’s editorial director.Based in Raleigh, North Carolina, USA, he coordinates the work of staff writers and contributors.On his watch, Tobacco Reporter has won several awards for editorial excellence.Since joining the magazine in 1997, Taco has visited more than 75 countries to meet industry representatives in their markets and to report tobacco news firsthand.

July 1, 2023