Author: Marissa Dean

  • 22nd Century Produces Homogenized Leaf

    22nd Century Produces Homogenized Leaf

    Image: Tobacco Reporter archive

    22nd Century Group has successfully produced homogenized tobacco leaf (HTL) sheet using VLN reduced-nicotine content tobacco, demonstrating a reduced-nicotine content pathway for additional large markets, such as heat-not-burn products, and as the binder or wrapper for machine-made cigars.

    “It’s time for the industry to offer adult smokers a true alternative to highly addictive nicotine products in every format,” said John Miller, president of tobacco products for the company, in a statement. “HTL is critical to the fast-growing heat-not-burn product category, where a VLN 95 percent reduced-nicotine content HTL would be a compelling alternative to the nicotine-laden tobaccos commonly used in these products. HTL is also commonly used as the binder and wrapper in the high-volume cigar market due to its greater mechanical resistance and uniformity as compared to whole tobacco leaves.”

    “Conventional tobacco products still seek to create and sustain nicotine addiction to generate sales,” said James A. Mish, CEO. “Even alternatives to conventional smoking products, such as vaping and e-cigarettes, perpetuate sales through nicotine addiction rather than giving consumers a real choice. 22nd Century wants to provide a true alternative that allows users to take control of their consumption habit once and for all by breaking the chains of nicotine addiction.”

    VLN HTL sheet product could be manufactured and sold as a raw material input or produced under license for companies interested in offering reduced-nicotine content and nonaddictive products.

  • Imperial Acquires TJP’s U.S. Nicotine Pouches

    Imperial Acquires TJP’s U.S. Nicotine Pouches

    Image: Rawpixel.com | Adobe Stock

    Imperial Brands acquired a range of nicotine pouches from TJP Labs in order to facilitate its entry into the U.S. modern oral market.

    The transaction will enable ITG Brands, Imperial’s U.S. operation, to offer legal adult American consumers a diverse range of 14 product variants in a pouch, which performs strongly in consumer testing.

    Following further consumer testing, ITG Brands will relaunch this range in 2024 under a new brand, which will be supported by the company’s existing U.S. sales force.

    TJP Labs, a Canada-based manufacturer, will continue to manufacture the oral nicotine pouches under contract for ITG Brands.

    Stefan Bomhard, group CEO of Imperial Brands, said, “Today’s transaction is aligned to our focused, challenger approach in next-generation products and to our disciplined capital allocation framework.

    “While it will take time to build our presence in this category, the proposition we are acquiring is clearly differentiated within the U.S. market and has tested strongly with consumers.”

    Kim Reed, president and CEO of ITG Brands, said, “This is an opportunity to expand our next-generation product offerings in the U.S. and to be able to offer our legal adult consumers a wider range of product options. We look forward to a long and successful partnership with TJP Labs.”

    David Richmond-Peck, CEO of TJP Labs, said, “Imperial has extensive brand development, marketing and sales execution capabilities in the U.S. and a long global track record of operating responsibly. We look forward to a strong and ongoing partnership.

    “This transaction supports TJP Labs’ commitment to developing and producing products to promote global harm reduction, consumer choice and flexibility.”

    Imperial already markets modern oral products in selected European markets under the Zone X and Skruf brands.

  • Public Hearings Ahead of COP10

    Public Hearings Ahead of COP10

    Image: Tobacco Reporter archive

    The Subcommittee for the Defense of the Tobacco Supply Chain, linked to the Committee on Agriculture, Livestock, Fisheries and Cooperatives of the Rio Grande do Sul State Assembly, promoted the first of 10 meetings to be held in the interior of Rio Grande do Sul with the aim to debate and see to the future and to the economic and social importance of the sector as well as for collecting data and evidences to formulate and forward the positioning of Rio Grande do Sul with regard to the provisions of the 10th Conference of the Parties (COP10) to the World Health Organization Framework Convention on Tobacco Control.

    The working meeting brought together approximately 300 people at the City Council Hall in Santa Cruz do Sul, including representatives of the supply chain, authorities, politicians and entrepreneurial leaderships. The premise was presented by deputy Marcus Vinicius de Almeida, coordinator of the subcommittee.

    “We want to give voice to those who frequently are judged without right to their defense. We cannot afford to allow people who do not know the reality of the farmers to dictate the future of our municipalities,” he said. According to the deputy, the committee will hold meetings in 10 municipalities, listening to farmers and companies.

    State Deputy Elton Weber presided over the meeting and prompted the debates. “We know that the federal government will have a seat at the COP, and it is our intention to define, in unified fashion, with all entities linked to the sector, our firm stance. It is an attempt to prevent ideological positions, but positions in accordance with what the sector produces and related to the everyday activities of the sector,” Weber said. The deputy mentioned that the ministries had been invited to participate and regretted the absence of their representatives.

    Interstate Tobacco Industry Union (SindiTabaco) President Iro Schuenke spoke about his expectation for the upcoming months. “We have plenty of work ahead of us; what we have witnessed in other editions is that the supply chain is simply ignored. Brazil, due to its global leadership position, should be an advocate of the supply chain. Unfortunately, it is not what we have seen while the measures of the Framework Convention are always immediately applied in our country. This is the speed that our subcommittee now needs. We need to work quickly to finish the report before August so that we are effective in our provisions sent to Brasilia. Support from all is necessary, but in Brasilia. Political pressure is the only manner for us to move forward,” Schuenke concluded.

    “The Framework Convention on Tobacco Control is the worst dictatorship I know, where the real interested parties are not allowed to take part in the debates,” said Schuenke at a public hearing requested by federal deputy Alceu Moreira on June 15 at the House of Representatives in Brasilia. “The [ideas] we normally hear, and there are many of them, especially in the area of health, have to be rebutted with facts. It is the case of the pitiable campaign we saw on May 31, where a child is sitting in front of a dinner plate full of cigarette ash. It is an aggression to the child and to the tobacco sector, which produces a licit crop that generates income and jobs for millions of Brazilians and is a protagonist in sustainable production, the so-called ESG. My intervention is to discover what stance the Brazilian delegation will adopt at the upcoming COP10 meeting and warn about the consequences from a poorly conducted positioning at the COP.”

    The public hearing was attended by representatives of the Ministry of Foreign Affairs, the Ministry of Agriculture and Livestock and the Ministry of Agrarian Development and Family Farming. The Ministry of Health did not attend the public hearing but sent a note, which stated that the ministry declined the invitation because the World Health Organization has not yet disclosed the agenda for the COP10, which is supposed to occur in August in Panama, thus making it “unnecessary” for the ministry to take part in the debates.

  • Maine Senate Votes to Ban Flavors

    Maine Senate Votes to Ban Flavors

    Image: Tobacco Reporter archive

    The Maine state Senate voted in favor of a bill ending the sale of flavored tobacco products across the state, reports WGME.

    The bill, which passed 18-16, will now move to the House for further discussion. If passed by the House, it will ban the sale of flavors like mint, vanilla, fruits and menthol. However, the bill will not penalize the use, purchase or possession of flavored products, only the sale by tobacco retailers.

  • Egypt Bans Smoking at Health Facilities

    Egypt Bans Smoking at Health Facilities

    Image: Tobacco Reporter archive

    Khaled Abdel Ghaffar, minister of health and population for Egypt, permanently banned smoking “in all its forms” at all health facilities that provide curative, preventative or rehabilitative services, according to Daily News Egypt.

    The ban also includes facilities of the ministry and its affiliated bodies and agencies, according to Hossam Abdel Ghaffar, official spokesperson for the Ministry of Health and Population. “The director responsible for each facility is obligated to take the necessary measures to prevent smoking in them. In case of violating this decision, the director will be punished according to what the law stipulates, a fine of not less than EGP1,000 [$32.36] and not more than EGP20,000, and the smoker shall be punished with a fine of not less than EGP50 and not more than EGP100,” he said.

    The spokesperson added that the law states “a supreme committee for tobacco control shall be formed by a decision of the Prime Minister, headed by the minister of health and with the membership of concerned ministers and representatives of civil society institutions. The health minister shall present the outcomes of the committee in the Cabinet meeting to take the necessary action.”

    A specialized department within the Ministry of Health will be established, as allowed by the related laws, by a decision of the minister of justice in agreement with the minister of health, and the department will have the capacity to implement laws related to combating smoking.

  • Serbia to Raise Cigarette Excise

    Serbia to Raise Cigarette Excise

    Image: Tobacco Reporter archive

    Effective July 1, Serbia will raise the excise duty on cigarettes, reports SeeNews.

    The proportional component of the excise duty will remain 33 percent, according to the government, but the specific component will increase to RSD84.25 ($0.78) per pack from RSD82.75 per pack.

    The retail price will increase by RSD10 per pack of cigarettes.

    The specific component of the excise duty will increase by RSD1.5 every January and July until 2025, according to Serbia’s excise calendar that was adopted at the end of 2020. The increases are to keep Serbia in compliance with European Union standards.

  • Drought-Tolerant Tobacco Introduced

    Drought-Tolerant Tobacco Introduced

    Image: Tobacco Reporter archive

    Zimbabwe’s Tobacco Research Board (TRB) has developed and released four drought-resistant tobacco varieties, according to News Day.

    The new varieties will help farmers who have been planting varieties not suited for their areas, according to Frank Magama, TRB CEO. They will also help the country meet its goal of producing 300 million kg by 2025.

    “Just to show you that we haven’t abandoned tobacco, I think in March, we released four varieties that are already in the market, and these varieties actually fit into the Tobacco Transformation Plan where we need to go to 300 million kilograms,” Magama said.

    “Already, you see that it’s quite possible, but what we have done with these varieties is that they are drought tolerant.

    “So, they will be able to safeguard the yields that we are currently obtaining within the tobacco growing districts, you know the usual one, but more importantly, we have put more hectarage in the amount of tobacco that can be grown.

    “Now, we have a belt around Masvingo where growers used to use the wrong varieties. They can grow this profitable (one), and we have a belt in Lower Gweru, and we have a belt in Matabeleland where there is a concentration of growers that are doing tobacco, and they are also suffering from wrong varieties.

    “But with these varieties, what it means is we have marginally increased the area under tobacco production by providing varieties that will actually be profitable in those areas.

    “And again, that fits within the scope of 300 million kilograms. Obviously, there are a number of things that we can do to make sure that we can constantly get the 300 million kilograms without necessarily increasing the hectarage itself. So, increasing hectarage wasn’t part of getting to the 300 million kilograms, but it was part of safeguarding the yield in the current tobacco production zones, including so-called marginal areas.”

    Tobacco exports in the country reached $407 million as of April 30, 2023, compared to $308 million by April 13, 2022.

  • PMI to Open Facility in Ukraine

    PMI to Open Facility in Ukraine

    Image: marinadatsenko | Adobe Stock

    Philip Morris International is launching a $30 million production facility in Lviv, western Ukraine, in the first quarter of 2024, reports Reuters.

    The facility will create 250 jobs, according to PMI.

    “This investment reflects our commitment as Ukraine’s long-term economic partner,” said Maksym Barabash, CEO of Philip Morris Ukraine. “We are not waiting for the end of the war—we are investing now.”

    Ukraine needs foreign capital to rebuild its economy following Russia’s invasion.

    Gross domestic product fell by 29.2 percent in 2022, the largest annual fall since Ukraine’s independence over 30 years ago. Some other large multinationals have recently announced investment plans in the central and western regions, including Unilever and Nestle.

    PMI started operations in the country in 1994 and has since invested more than $700 million in the economy.

  • Estonia to Raise Tobacco Excise Duty

    Estonia to Raise Tobacco Excise Duty

    Image: Tobacco Reporter archive

    Estonia’s Riigikogu passed a bill to raise excise duties on alcohol and tobacco products ahead of its second reading, according to ERR.

    The Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and the Act Amending the Alcohol, Tobacco, Fuel and Electricity Excuse Duty Act and Other Acts had 57 votes in favor and 35 votes against.

    The bill will increase alcohol excise duty and tobacco excise by 5 percent per year between 2024 and 2026.

    An amendment to the bill put forth before the second reading states that maximum retail prices of cigars and cigarillos will be reported with a precision of $0.10 instead of $0.50, as previously outlined, if the cost is €10 ($10.91) or less.

    The bill also removes the excise duty increases on special diesel fuel in order to help keep Estonian farmers competitive.

    The bill passed its first reading on May 17. On June 8, the coalition decided to tie the bill to a vote of confidence to avoid a filibuster.

  • PMI Publishes First Human Rights Report

    PMI Publishes First Human Rights Report

    Image: PMI

    Philip Morris International released its first Human Rights Report, detailing the company’s strategy to promote, respect and protect human rights and its progress to date in implementing its Human Rights Commitment.

    PMI’s Human Rights Commitment outlines the foundational principles that need to be respected throughout the operations and value chain by both PMI and its business partners. In 2022, PMI updated its commitment with the company’s latest saliency mapping, sustainability materiality assessment, ongoing due diligence activities and the evolution of the company’s sustainability strategy.

    “Establishing a strong foundation and integrating mechanisms into our organization that promote, respect and protect human rights are an essential part of our approach to business,” said Jacek Olczak, CEO, in a statement. “While this can be challenging given the breadth of our operations and the scope and complexity of the issues involved, we believe human rights are an absolute and universal requirement that we are committed to upholding.”

    In its Human Rights Report, PMI shares its best practices, lessons learned, main challenges and future actions. It also features country-based case studies and external recognition—such as the inclusion of PMI’s Agricultural Labor Practices in the World Business Council for Sustainable Development’s latest Human Rights Progress Report. PMI actively participates in the Business Commission to Tackle Inequality’s efforts and contributed to the latest report on Tackling Inequality: An Agenda for Business Action.

    In addition, PMI’s Human Rights Report includes progress toward achieving its 2025 goal to conduct 10 human rights impact assessments (HRIAs) in the highest risk countries. To date, PMI has completed seven HRIAs, including two in 2022 in Brazil and Malaysia.

    PMI’s approach to human rights is grounded in the United Nations Guiding Principles on Business and Human Rights.

    “Human rights are inherent to the dignity of human life and a prerequisite for society to prosper,” said Jennifer Motles, chief sustainability officer. “As a global company, we work to uphold human rights both within our organization and across our value chain. We will continue to work with different parts of society in a multi-stakeholder approach to achieve sustainable solutions that comprehensively address systemic human rights issues.”