Author: Marissa Dean

The Heat is On

Photo: lunx
Competition in South Korea’s heated-tobacco products market is intensifying.
By Stefanie Rossel
When it comes to adoption of heated-tobacco products (HTPs), South Korean consumers are second only to their Japanese counterparts. Sales of HTPs have increased significantly since their introduction to the South Korean market in 2017, cannibalizing sales of traditional cigarettes. In 2023, the country’s HTP market is estimated to reach a value of KRW2.2 trillion ($913.39 million), up from KRW1.6 trillion in 2019 and KRW2 trillion in 2021, according to Euromonitor. By 2025, the business intelligence firm predicts that the Korean HTP market will be worth KRW2.4 trillion.
While the number of tobacco products sold in South Korea rose by 1.1 percent from 3.59 billion packs of 20 cigarettes in 2020 to 3.63 billion packs in 2022, it was consumable sales of HTPs that drove the market. Their share increased from 380 million packs in 2020 to 540 million packs in 2022 whereas the sale of combustible cigarette packs dropped from 3.2 billion packs in 2020 to 3.09 billion in 2022, the country’s finance ministry stated in February.
Demand for conventional cigarettes fell by 1.8 percent year-on-year while sales of HTPs rose by 21.3 percent. According to a survey by the Ministry of Finance, HTPs held a share of 14.8 percent of the total tobacco market in the first half of 2022. In 2023, the overall South Korean tobacco products market will be worth an estimated $9.2 billion, according to Statista. The country’s continuously declining smoking rate has been linked to the introduction of HTPs to the market. Smoking prevalence, which stood at 23.8 percent in 2015, dropped to 15.6 percent in 2021 and is expected to decrease by another 2.6 percent by 2026.
Both traditional cigarettes and tobacco sticks for HTPs retail at roughly KRW4,500 per pack of 20 but are taxed slightly differently. Total tax per pack of 20 combustible cigarettes amounts to KRW3,223. For a pack of HTP consumables, it’s 90 percent of that, or KRW3,004, reflecting that the products are considered to be less harmful than traditional smokes. In April this year, South Korea’s ruling party suggested subjecting cigarettes and HTPs to the same tax rates amid a government drive to boost falling revenue, but the Ministry of Finance rejected the proposal. With a general election coming up in April 2024, the government is not expected to equalize the tax differential between the two categories in the near term.

In January, KT&G CEO Baek Bok-in and PMI CEO Jacek Olczak turned their companies’ three-year cooperation agreement into a 15-year contract. While partnering internationally, PMI and KT&G compete fiercely for market share in South Korea. | Photo: KT&G
Partners and Competitors
South Korea’s HTP market is split among three players: Philip Morris International, KT&G and BAT. Recently, competition has been heating up in the category: PMI, which in 2017 introduced the first HTP (IQOS) in South Korea, remained the market leader until 2019, when IQOS sales declined from KRW800 billion in 2017 to KRW500 billion and KT&G overtook PMI with its Lil device. According to 2FIRSTS, Lil accounted for 48 percent of the market in May 2023 followed by IQOS with 42 percent and BAT’s Glo with 10 percent.
In the past six months, all manufacturers have introduced new models of their HTP brands in Korea; they have also unleashed an aggressive price war.
In November, KT&G launched Lil Aible, which is equipped with artificial intelligence technology that shows how long it takes to fully charge the device and preheat the consumable as well as how many times the user can puff with the remaining battery. On KT&G’s dedicated mobile app, users can check messages, phone notifications, the weather and calendar information. What sets the new model apart from other HTPs is its ability to use three different tobacco sticks with one device. Like its predecessor, Lil Aible features automatic heating, a self-cleaning system and a maximum of three consecutive uses.
The product comes in two versions—an original version that retails at KRW110,000 and a premium version, which has an OLED touchscreen to make it easier for users to control diverse functions, at KRW200,000.
To recapture its No. 1 position, PMI in February launched IQOS Iluma One, an economy version of its latest HTP device. The Iluma series works with a bladeless induction system and can only be used with dedicated heat sticks named Terea. The sticks are equipped with a metal heating element, a thin solid metal thread that is coated with stainless steel that heats the tobacco from within. A front plug at the end of the stick behind the tobacco element prevents tobacco residue, which means users do not need to clean the device.
The company had been selling the more premium variants, Iluma and Iluma Prime, in major South Korean cities including Seoul and Busan since late 2022 and seized the opportunity of the Iluma One introduction for a nationwide rollout of all of its Iluma models. Iluma One is available at KRW69,000 whereas Iluma and Iluma Prime are sold for KRW99,000 and KRW139,000, respectively.
In late November 2022, PMI had started manufacturing Terea consumables at its South Korean Yangsan plant, where the company has invested more than KRW300 billion in the production of noncombustible products since 2017.
While battling for market share in South Korea, PMI and KT&G cooperate internationally. On Jan. 30, 2023, PMI and KT&G turned the three-year agreement they signed in 2020 into a 15-year contract. The agreement gives PMI exclusive access to KT&G’s smoke-free brands and innovation pipeline, including offerings for low-income and middle-income markets, and provides KT&G with continued access to PMI’s global commercial infrastructure and experience in commercializing smoke-free products. As a result of the collaboration, Lil, which PMI considers complementary to its existing portfolio of smoke-free products, is currently present in 31 countries in Central America, Europe and Central Asia.
Fierce Price Battle
Also in February, BAT launched Glo Hyper X2 in South Korea. After years of plodding along with a market share of 6 percent, the company increased its market share to 11.7 percent in 2022, according to The Korea Herald. Glo Hyper X2 is expected to further bolster the company’s position in South Korea. The all-in-one device, which features induction heating technology, faster heating and an LED indicator showing battery status, was introduced at a cut-rate price of KRW40,000.
In May, BAT cut prices of its HTPs in South Korea by half to expand its market share, according to 2FIRSTS.com. Glo Hyper X2 now retails at KRW19,000. According to the website, BAT Korea’s revenue in 2022 increased 14.3 percent compared to the previous year, but operating profits declined by 11.6 percent to KRW44.6 billion. Analysts fear that the low price strategy will cause BAT’s profitability to decline.
BAT’s price reductions prompted KT&G to follow suit. The company began selling Lil Aible and Lil Aible Premium at a promotional price of KRW99,000 and KRW167,000, respectively. Analysts estimate that to maintain profit margins, the companies must sell their heating products for at least KRW30,000.
Whether BAT’s strategy will work out remains to be seen. With an estimated 8 million smokers of combustible cigarettes, the South Korea market still holds a lot of potential for manufacturers of less hazardous alternatives.
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

July 1, 2023
Stepping Up

Zilong presented its Marskiss heat-not-burn product at TabExpo in Bologna.
(Photo: Taco Tuinstra)
Newcomer Marskiss aims to offer heated-tobacco consumers an improved user experience.
By Stefanie Rossel
Since their introduction to the market less than a decade ago, sales of heated-tobacco products (HTPs) have grown remarkably. Market research companies are outdoing each other in their forecasts for the category. Reportlinker, for example, valued the global HTP market at $22.36 billion in 2022 and expects it to reach $25.89 billion this year. The market is anticipated to increase at a compound annual growth rate of 15.9 percent to reach $72.86 billion by 2030. Euromonitor expects HTPs to cement their place at the head of the vapor growth category, with significant growth in Japan, South Korea, Russia, Italy, Germany, Poland, the U.S. and Ukraine.
The global HTP market is dominated by four large players—Philip Morris International, which pioneered the category with its IQOS device; BAT, which competes with its Glo brand; Japan Tobacco International, known for its Ploom product; and KT&G with its Lil series.
Inspired by the success in the segment of their larger counterparts, many smaller manufacturers have also entered the market. One of them is Singapore-based business Zilong. Driven by its desire to design a safe and good-flavored HTP, the company spent more than 10 years developing Marskiss before debuting the product in 2021 at the WT Middle East exhibition in Dubai and, more recently, showcasing it at TabExpo 2023 in Bologna.
To understand how Marskiss differs from other HTPs, it’s helpful to examine the company’s background. Zilong was founded by Zhan Baoming, who has worked China’s tobacco industry since 1991 and also owns a cigarette flavoring company. Zhan has been in tobacco harm reduction since 2000. The knowledge he acquired about tar reduction and aroma enhancement laid a solid foundation for the creation of Zilong’s HTP product, according to Zhan. “My goal is to make a good HTP product that is low in tar while satisfying in tobacco aroma,” he says.

One Marskiss stick provides users with the same level of satisfaction as two or three sticks of other HTP brands, according to Zilong. (Photo: Taco Tuinstra)
Longer Lasting Aroma
The nature and treatment of the tobacco makes all the difference, explains Zhan. “Our product uses high-quality natural tobacco as a carrier for our ‘aroma precursors,’ which is a featured technology of our product. At present, most HTP products on the market use food liquid fragrances to produce tobacco aroma. However, the resistance of food liquid fragrances to high temperature is weak, and the fragrances will be denatured and volatilized quickly with the increase of temperature, resulting in a shorter retention time of tobacco aroma. How to prolong the retention time of tobacco aroma? After years of research, our technical team found that natural tobacco and aromatic plants can be processed in a special procedure to obtain a comprehensive aroma, which produces fragrances of more lasting retention. This is what we call ‘the aroma precursor.’ The aroma precursor has much less impurity and more full-bodied, consistent and lasting tobacco flavor.”
According to Zhan, Marskiss sticks feature more advanced moisturizing technology than other HTPs, which makes their aerosols purer and fresher. Among other benefits, this prevents users from experiencing a dry mouth, which is a common problem associated with HTPs. To keep the moisturized tobacco fresh, Zilong has developed a special stick construction that includes a storage chamber for the tobacco and a more efficient filtering technique.
“The paper tube of our product has two layers—an outer layer and an inner layer—and we choose natural porous material as the inner layer coating to build a storage environment similar to a ceramic pot, which can capture the moisture from the tobacco section and keep it inside the tube so that the tobacco section will not become dry after the package has been opened for a period of time,” says Zhan.
The patented chamber lets the tobacco age naturally with storage, according to Zilong, which will result in a better taste. What’s more, the filter section of each Marskiss stick features a ball array filtration system so that the aerosol passes through a curved path formed between the gap in the ball array. “After layer upon layer [of] filtration, the aerosol becomes fresher and purer,” explains Zhan.

Marskiss sticks feature advanced moisturizing technology that keeps aerosols pure and fresh. Among other benefits, this prevents users from experiencing dry mouth. (Image: Zilong)
More Satisfying
Zilong claims its technology enables one Marskiss stick to provide users with the same level of satisfaction as two or three sticks of other HTP brands. By using lower, more balanced levels of nicotine salts, Marskiss also helps users avoid headaches associated with excessive nicotine salts.
Marskiss tobacco sticks come in five flavors and are matched by a device with a pre-heating time of 20 seconds that allows for 18 puffs or five minutes of use, which is about four puffs more than other brands. Initially, Zilong intends to launch Marskiss with blade heating technology. Down the road, the device will also be available with pin heating technology. “It is light-weight, slim and slick, and portable, and more importantly, it is a perfect match with our stick product that can heat the sticks to give the best experiences to users,” says Zhan.
In combination with the sticks’ patented filtering technology, the device reduces throat irritation and reduced dust to lungs, according to Zilong.
The company has invested €15 million ($16.25 million) in Marskiss so far. In preparation for launch, Zilong has started identifying markets and partners. According to Zhan, the product has performed well in consumer trials. “We have done several rounds of consumer testing in different markets and basically, we get pretty positive feedback from users, including distinctive and lasting tobacco aroma, no bad smell in mouth and room so that people around them do not object them from using our product, and no headache or coughing after using,” he says.
“We hope to tackle the pain points of the smokers, and we are committed to making the best [heat-not-burn] product,” says Zhan. “Please stay tuned for updates.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

July 1, 2023
A Mixed Bag

Image: Taco Tuinstra
Growers continue to struggle with rising production cost, but demand for tobacco remains firm.
By Stefanie Rossel
Ivan Genov
Challenges abound for the global leaf sector, but there are also opportunities for tobacco farmers, Ivan Genov, manager of tobacco industry analysis at the International Tobacco Growers Association (ITGA), told participants in the organization’s recent regional meeting in Salta, Argentina.
The ITGA recently completed a survey among growers and other stakeholders. “The rising cost of production was consistently put as the primary economic concern in the Americas, Africa, Asia, Europe as well as the Middle East regions,” Genov told Tobacco Reporter. “This dynamic is accelerating and has been particularly worrying in the last two to three marketing seasons. The situation is made worse by other underlying factors, including inflation, price rises of key commodities and growing international tensions, making even more challenging the navigation in global supply chains. All these factors contribute to bringing up the general costs of living and create a natural obstacle in tobacco production.”
In Brazil, for example, the cost of production increased by more than 30 percent on an annual basis; in Zimbabwe, it was more than 20 percent. In most of the leading tobacco producing and exporting countries, the cost of production has been growing at double-digit figures, according to Genov.
In addition, Russia’s invasion of Ukraine has impacted the availability and pricing of fertilizers. “The war in Ukraine, along with the massive humanitarian disaster, is also highly problematic in the wider agricultural aspect,” said Genov. “A lot of African and lower income markets are highly dependent on agrifood commodities imported from Russia and Ukraine; wheat was highlighted by the United Nations in the beginning of the conflict. The war has created a shortage of fertilizers as well as a spike in pricing as alternative production routes have to be exploited—often much farther away. This adds to the rising costs of production.”
Worsening U.S.-China relations, meanwhile, could result in more trade barriers for leaf tobacco and other commodities. Inflation pressures, meanwhile, have added to the general expectation of a prolonged period of crisis. There is consensus that cigarette consumption has peaked and is now declining in line with tobacco in the long term. Novel alternatives such as heated-tobacco products contain less tobacco per stick than traditional cigarettes, whereas e-cigarettes require no tobacco at all. The EU Supply Chain Due Diligence Act will bring about more requirements in each step of the production process.

All tobacco origins suffered from significantly increased cost of production. | Photo: Tobacco Reporter archive
Resilient Farmers
Despite these challenges, there are still opportunities for tobacco growers, the survey showed. Since late 2020, leaf has been in undersupply worldwide—an issue that is openly discussed by leaf merchants and international manufacturers. “Some of them have the lowest uncommitted inventories in their recent histories,” said Genov. “The case around burley is particularly relevant. For example, the 2022 crop in Malawi—one of the key markets for the variety—was very short. As a result, we believe it is natural to expect growth in pricing that goes above the cost of production increases [see “Back to Normal,” Tobacco Reporter, June 2023]. The alternative is to see further drops in the global tobacco growers base as cultivating the crop will become even more challenging. We have to remember that this happens on top of issues with generational continuation and the move away from rural areas by young people.”
Stable producers who are well prepared for the underlying threats will enjoy demand for their products, according to Genov. “A lot of tobacco growers have been in the business for several generations,” he said. “A great number of them have a well-diversified land, stable channels and partners for their inputs and huge experience in planning. In the face of leaf shortage and high demand, this surely means quality production is very likely to be realized. Unfortunately, in some cases, diversification is not as easy. It is not only about time and financing but the opportunities of the market. In certain countries, tobacco is the best bet. Small-scale farmers are often left with the least support; they do not have the capacity and time to safeguard against all threats. This is why support from all stakeholders in the sector is essential. Small-scale farmers must not be treated as suppliers of low-price production only.”
Most tobacco farmers are exceptionally resilient, Genov stated. “They have worked in a regulations-heavy environment for decades. Nevertheless, it is still essential to receive support and real understanding from local and international authorities and to be included in the conversations that decide their futures. In addition, tobacco growers’ needs are often not dissimilar to those farmers caring about other field crops.”
Support Needed
According to Genov, one way to assist growers is through diversification efforts, especially in the markets that are heavily dependent on tobacco. Unfortunately, he said, the World Health Organization’s Framework Convention on Tobacco Control (FCTC) Article 17, which urges member states to find viable alternatives for tobacco growers, has delivered few tangible results on this front. ITGA has put Article 17 at the center of its efforts in 2023 to ensure that the issue is taken seriously during the Conference of the Parties to the FCTC in Panama later this year. The organization urges stakeholders to remember that the livelihoods of millions of people depend on tobacco growers.
Tobacco growing countries will also need assistance with issues such as deforestation, which has been a big problem, especially in Africa. “Finding and financing alternative fuel sources that are more environmentally sustainable is critical,” said Genov. “There are some projects being run in this area. Last November, ITGA organized an awareness bringing campaign about deforestation in three of the leading tobacco growing regions in Zimbabwe. We are pressing ahead with expanding the project to other regions by the end of the year.”
One of the areas that should be prioritized is water management, according to the results of the ITGA’s survey. “For example, in Brazil, one of the key international leaf markets, there is low water storage capacity,” said Genov. “Water conservation is going to climb on the agenda in the years to come. If we include the urgent social issues that are often faced by tobacco growers, like poverty, lack of opportunity for the youth, child labor and inadequate healthcare, we can see that the sector still needs a lot of attention.”
Increasingly, tobacco growers have to cope with the consequences of climate change, which makes it harder to plan agricultural activities. “This makes services like insurance and the importance of forward planning even more significant,” Genov stressed. While weather variations can always be expected, there were some abnormal events in the last few seasons: “In 2022, Malawi was hit by Cyclones Gombe and Anna while Cyclone Mandous affected the crop in Andhra Pradesh in India. In the Americas, certain origins, like in the Dominican Republic, report changes in the traditional rainy season while in Europe, there were periods of prolonged drought. In Cuba, arguably the most striking example, Hurricane Ian obliterated the crop used to produce premium cigars.”
Cost of Production
In his presentation, Genov also reviewed global leaf production, citing data from Universal Leaf. Driven by increases in the U.S., Brazil and Zimbabwe, flue-cured Virginia (FCV) rebounded slightly, to 1.73 billion kg, in 2021. In 2022, the FCV crop excluding China was again short, down to 1.64 billion kg. Brazil’s season, for instance, finished last year with 60 million kg less than in 2021. For 2023, leading markets are expected to increase production, which could lead to increased supply at the global level, Genov said.
In Zimbabwe, production fell by 3 percent in 2022 to just over 200 million kg but was still higher than expected due to drought and the late rains improving the crop. The cost of production rose faster than tobacco prices, however, and is likely to continue increasing next year. “Farmers’ viability over the last two years has been significantly reduced,” said Genov. “In future, pricing will remain a crucial element in seeing which farmers stick with tobacco and which will move entirely to other crops. It is interesting to note here that Zimbabwe’s government has an ambitious target to stimulate production to 300 million kg by 2025 [see Tobacco Reporter’s special report on the Tobacco Value Chain Transformation Plan in May 2023]. Given the current progress of the market, this seems highly unlikely.”
In the U.S., production cost put severe pressure on growers who are increasingly turning to other commodities. “Labor, energy and fertilizer cost will flag this particularly,” said Genov. “2022 has been said to be the most expensive crop to be grown in U.S. history.” For 2023, U.S. producers expect increasing demand with no relief in cost of production, Genov said, and it appears that China is back on the market.
In China, meanwhile, tobacco production has been growing exponentially. The FCV crop reached an estimated 1.91 billion kg in 2022 and is expected to increase to 2 billion kg this year. Tobacco imports overcame their Covid-related drop of 2020 in 2021, according to Genov, who expects demand to remain strong based on local consumption patterns.
Burley production decreased from 407 million kg in 2021 to 360 million kg in 2022. The crop is anticipated to bounce back to 460 million kg in 2023.
Oriental production dropped from 154 million kg in 2020 to 119 million kg in 2021 and stagnated in 2022 at 117 million kg. Production of dark air-cured slightly increased from 108 million kg in 2021 to 113 million kg one year on. For the two latter crops, there is no estimate for 2023 yet.
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

July 1, 2023
KT&G Receives AAA Credit Rating

Image: Tobacco Reporter archive
KT&G has obtained the highest grade of AAA in all three major domestic corporate credit ratings: Korea Ratings, Korea Credit Rating and NICE Credit Rating.
Among domestic private companies excluding financial and telecommunications companies, KT&G is the only company to achieve a corporate credit rating of AAA.
The corporate credit rating agencies have assessed KT&G’s business stability as extremely excellent based on its high market position in key business sectors. The agencies have given high evaluations to the company’s solid domestic market dominance, built on its long history, high brand recognition as well as its strong presence in the global tobacco and e-cigarette industries.
Furthermore, with plans for dividend payments, share buybacks and investments aimed at shareholder returns and expanding domestic and international production facilities, it is expected that KT&G will maintain excellent financial stability by ensuring smooth cash generation to meet funding requirements in the future.
A KT&G representative stated, “Amid increased uncertainties in both domestic and international markets, such as recent interest rate hikes, many companies have faced challenging business environments. In this context, we believe that KT&G’s achievement of the highest AAA rating from the three credit rating agencies is a recognition of our company’s stability and profitability by external entities.” They further added, “We will continue to strive to maintain a stable financial structure based on our excellent creditworthiness and make every effort to ensure financial stability in the future.”
June 30, 2023
Hungarian Economy Hit by Illegal Trade

Image: Tobacco Reporter archive
Half a billion illegal cigarettes were bought in Hungary in 2022, preventing the country from receiving HUF30 billion ($87.9 million) in excise tax revenue, KPMG data shows, according to Hungary Today.
The illegal cigarette market in Hungary recorded a three percentage point increase in 2022 despite falling consumption. According to KPMG, the country’s share has reached 2019 levels mainly due to products made specifically for smuggling and due to counterfeit tobacco.
Most of the illegal products come from Ukraine.
Criminal organizations are making increasing profits by distributing illicit products in countries with higher prices and taxes, according to the study. The pandemic and the Russian-Ukrainian war are also noted as reasons why illicit trade has increased.
June 30, 2023
CTP Reports Progress on Reagan-Udall Review

Image: Tobacco Reporter archive
Brian King, director of U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), published a statement summarizing the CTP’s progress in addressing the recommendations from the Reagan-Udall evaluation.
At the request of FDA Commissioner Robert Califf, the Reagan-Udall Foundation evaluated the CTP’s operations. In December, the foundation submitted its report, which identified several problems hindering the agency’s ability to regulate the industry and reduce tobacco-related disease. Among other recommendations, the foundation urged the CTP to make process improvements and increase transparency.
According to King, the CTP has made significant strides in putting its plans for improvement into action. The agency, he said, is on track to issue proposed goals this summer, and to release the final plan by December 2023. The CTP intends to hold a public meeting in summer 2023 to seek stakeholder feedback about the strategic plan.
Meanwhile, said King, the CTP Ombuds Office is leading the creation of an operational strategy to improve transparency and information sharing across all programmatic areas, including through the establishment of transparency liaisons. Externally, the center is planning for upcoming public meetings to gather stakeholder input. CTP also published a webpage of all the tobacco products-related citizen petitions received by the center to provide the public with information about such citizen petitions that is easy to access and user-friendly.
According to King, the center has reviewed 99 percent of tobacco product applications submitted over the past three years, authorizing 23 tobacco-flavored e-cigarette products and devices. The CTP is currently planning a public meeting to take place in fall 2023 regarding the application review process.
Meanwhile, the center is in the process of finalizing rules related to menthol cigarettes and flavored cigars and continues to work toward publishing a proposed rule that would establish a maximum nicotine level to reduce the addictiveness of cigarettes and certain other combusted tobacco products.
CTP also recently proposed new requirements for tobacco product manufacturers regarding the manufacture, design, packing and storage of their products.
King also highlighted the CTP Office of Science leadership’s participation in conferences and external meetings. For example, representatives from the Office of Science recently presented at the Food and Drug Law Institute’s Nicotine Product Regulatory Science Symposium, the E-Cigarette Summit and the TMA annual meeting (see Todd Cecil’s TMA presentation here).
“I am proud of the significant progress the center has made to date in addressing the external evaluation recommendations, and I am confident that we’ll continue to make important strides in continuing to build and strengthen FDA’s tobacco program in the future,” said King.
A comprehensive list of CTP status updates for each Reagan-Udall Foundation recommendation is available here.
June 29, 2023
New Deadline for South Africa Vape Comments

Image: Tobacco Reporter archive
The public consultation on South Africa’s new Tobacco Products and Electronic Delivery Systems Control Bill will end on July 28, the Portfolio Committee on Health announced.
In a media statement from Parliament, the government said that written submissions on the bill must be emailed to tobaccobill@parliament.gov.za or submitted online at https://forms.gle/FLrhnvThDk8ccLG97.
The submission period was originally between June 21, 2023, and Aug. 4, 2023.
The bill aims to regulate not only traditional tobacco smoking but also electronic cigarettes, such as vapes, which have become immensely popular not only as a means to stop smoking normal cigarettes but as a gateway into nicotine consumption.
In broad terms, the bill aims to regulate the sale and advertising of both tobacco products and electronic delivery devices, reports Business Tech.
According to Parliament “the bill will also focus on legislating electronic nicotine and electronic non-nicotine delivery systems; introduce plain packaging with graphic health warnings and pictorials; introduce a total ban on display at the point of sale; introduce 100 percent smoke-free areas—indoor public places and certain outdoor areas; and a total ban on vending machines for tobacco products.
At the start of the month, the Portfolio on Health briefed Parliament on the new bill with mixed reactions. Many stakeholders were concerned as to the severe knock-on effects the new bill could have on the tobacco/smoking industry, which is a key driver of economic growth in South Africa.
Members of Parliament said that the bill could lead to more people turning to the already budding illicit tobacco industry and lead to job losses.
Asanda Gcoyi, chief executive of the Vapour Products Association, said that combustible alternatives to traditional cigarettes should form the backbone of tobacco harm reduction in South Africa and be seen more as a solution to a problem rather than a new problem.
She said that the government has managed to demonize vaping, marking it as more damaging than traditional cigarettes.
Vapes are not only getting regulated by the new bill but are also being drawn into the ambit of excise taxes as provided in the updated Tobacco Product Excise.
Barry Buchman, managing director of Vaperite, said that the newly imposed excise duty on vaping products has taken its toll on retailers, with many arguing that the tax has had the adverse effects of driving consumers toward the illicit market.
Buchman added that the tax is pushing consumers to purchase the highest and most addictive nicotine content e-liquid as it is a cheaper option, negating the original aim of the National Treasury to tackle health-related issues.
June 29, 2023
Zimbabwe Sales Surpass $800 Million

Photo: Taco Tuinstra
Since auction and contract floors opened in March, Zimbabwe has sold more than 270 million kg of tobacco worth $817 million, reports The Herald.
The target this year was 230 million kg compared to last year’s 212 million kg.
Tobacco Industry and Marketing Board (TIMB) data shows that this year’s sales have increased 52 percent from 2022 sales of 177 million kg during the same period.
The highest price at the contract floors was $6.10 per kilogram while the highest price at the auction floors was $4.99 per kilogram.
“The prices are hovering around $3.02 per kilogram, and we hope they will improve as the marketing season progresses. If the prices continue like this, we will manage to go back to the field again,” said Marjory Munengerwa of Rusape.
So far, farmers have been happy with the marketing season and the fast, fair payments. TIMB has been working to create a marketing season without side marketing.
Zimbabwe generates $1 billion annually from tobacco exports to over 60 countries around the world, among them China, Japan, the United Arab Emirates, Indonesia, Belgium, the United Kingdom, the United States, Brazil, South Africa, Botswana, Malawi, Egypt, Tanzania, Zambia, Mozambique and Lesotho.
A new target of 300 million kg per year has been set with plans to transform the sector into a $5 billion industry by 2025.
June 28, 2023
FDA Urged to Reconsider Menthol Ban

Image: Tobacco Reporter archive
Twenty U.S. representatives are urging the Food and Drug Administration to reconsider the proposed ban on menthol cigarettes and flavored cigars, reports CSP. The ban would exacerbate existing illicit trade of tobacco products, according to a letter sent to FDA Commissioner Robert Califf.
A final rule is set to be published in August but would not go into effect until at least next year.
“When Congress enacted the Tobacco Control Act in 2009, the intent was for the FDA to use regulation to ensure proper oversight of the tobacco industry. When prohibition-based actions result in large illicit markets, it causes more risk for Americans, more crime, more burden on law enforcement and more opportunities for policy and community conflict,” the letter said. “We urge FDA to take illicit markets seriously. The FDA can do this by using regulation to safely meet adult consumer demand while also establishing controls on how those products are marketed to protect kids. We urge you to reconsider FDA’s proposed rules on menthol cigarettes and flavored cigars and refrain from any further prohibition-based actions that threaten to expand illicit markets.”
The proposed ban would result in about one-third of all cigarettes sold in the U.S. becoming illegal, according to the letter, highlighting concern that the ban would lead to a similar illicit market to vapor products.
“With this prohibition-based approach, we now see thriving illicit e-vapor markets all over the U.S.,” the letter stated, pointing to states that have enacted flavor bans. “These markets include illegal products with some of the highest incidence of underage use; products made in Chinese manufacturing facilities with no FDA oversight; products being illegally smuggled over U.S. borders and through U.S. ports; products being trafficked in violation of state and local criminal laws; and products being sold without age verification.”
The letter was signed by U.S. Representatives John Rutherford, Don Bacon, David Valadao, Ben Cline, C. Scott Franklin, Troy Nehls, Richard Hudson, John Rose, Jerry Carl, Eric “Rick” Crawford, Daniel Meuser, Andrew Garbarino, Debbie Lesko, Byron Donalds, Mike Ezell, David Rouzer, Anthony D’Esposito, Kat Cammack, Diana Harshbarger and Jeff Duncan.
June 28, 2023
Unauthorized Vapes Flood U.S. Market

Image: Tobacco Reporter archive
The number of vapor devices on the U.S. market has nearly tripled since 2020, with a majority being unauthorized disposables from China, according to IRI sales data reported by the AP.
The influx comes more than three years after the U.S. Food and Drug Administration declared a crackdown on kid-friendly flavors; many of the unauthorized products come in sweet and fruity flavors that are technically illegal. This means the FDA must focus on removing unauthorized products from the market rather than carefully reviewing individual products that could help adult smokers.
Last year, cheaper disposables made up 40 percent of the $7 billion retail market for e-cigarettes, according to IRI data. IRI collects barcode scanner sales from convenience stores, gas stations and other retailers. The data shows that more than 5,800 unique disposable products are being sold in numerous flavors and formulations, up 1,500 percent from 365 in 2020, when the FDA banned all flavors except menthol and tobacco from cartridge-based e-cigarettes. The ban excluded disposables, though.
“The FDA moves at a ponderous pace, and the industry knows that and exploits it,” said Robert Jackler of Stanford University, who has studied the rise of disposables. “Time and again, the vaping industry has innovated around efforts to remove its youth-appealing products from the market.”
“I don’t think there’s any panacea here,” said Brian King, director of the FDA’s Center for Tobacco Products. “We follow a comprehensive approach and that involves addressing all entities across the supply chain, from manufacturers to importers to distributors to retailers.”
The surge of disposables was preventable, according to Mitch Zeller, former FDA head. “I told them: ‘It doesn’t take a crystal ball to predict that kids will migrate to the disposable products that are unaffected by this [ban], and you ultimately won’t solve the problem,’” Zeller said.
IRI restricts access to its data, selling it to companies, investment firms and researchers. The data was shared with the AP by an anonymous person not authorized to share the information. IRI declined to comment or confirm the data, stating the company doesn’t offer that information to news organizations.
June 28, 2023