Author: mikem

  • Wisconsin Targets Menthol

    Wisconsin Targets Menthol

    On January 15, the Wisconsin Department of Health Services (DHS) launched a targeted digital education campaign highlighting the dangers of menthol tobacco products. The campaign targets groups the department feels have been “disproportionately targeted” by menthol marketing, including Blacks and other people of color, youth, young adults, and members of the LGBTQ+ community.

    The DHS and other health officials say the commercial tobacco industry is using tactics like high-density advertising – such as sponsorships of events and music festivals – retail promotions, and the sale of flavored products to get people addicted to smoking.

    “Over generations, menthol in tobacco has had a catastrophic health impact on Wisconsinites,” said State Health Officer Paula Tran. “Each year 7,900 Wisconsinites die from tobacco use. National studies have shown that if menthol cigarettes were no longer available in Wisconsin, an estimated 17,200 adults in the state would quit smoking.”

    The DHS says menthol is used by nine of 10 Black Wisconsinites who smoke, contributing to the three leading causes of death in the community: heart disease, cancer, and stroke. It also said the prevalence of smokers in Black communities is “sometimes nearly twice as high compared to other communities across the state.”

    “The result will be that we will continue to see generations of people dying from smoking-related illnesses or suffering long-term addictions,” said Vicki Huntington, section manager with the DHS Commercial Tobacco Prevention and Treatment Program. “Through this awareness campaign, we want to inform people about the harm that comes from menthol tobacco use and call attention to the tactics that the industry is using to get people addicted.”

  • BAT Shifts Voting Rights

    BAT Shifts Voting Rights

    British American Tobacco (BAT) announced a change in the voting rights composition involving The Capital Group Companies, Inc., which now holds 15.075429% of the voting rights, up from a previous 14.040509%. This adjustment in holdings indicates a notable change in the company’s stakeholder landscape, potentially impacting its governance and decision-making processes.

    The Los Angeles-based Capital Group is BAT’s largest shareholder, growing from a 13% stake in July 2024 and 14% stake in December 2024.Capital Group is the world’s largest active fund manager, with $2.7 trillion AuM (assets under management).

  • China: Former Tobacco Head Pleads Guilty on Bribery Charges

    China: Former Tobacco Head Pleads Guilty on Bribery Charges

    Ling Chengxing, former director of the State Tobacco Monopoly Administration of China, pleaded guilty and expressed remorse on charges of bribery and abuse of power in a Changchun court today. He was charged with illegally accepting property worth over 43.1 million yuan ($5.9 million).

    Previously, Ling also held several other high-level positions, including vice-governor of Jiangxi province, the Party committee member of the Ministry of Industry and Information Technology, and general manager of China National Tobacco Corporation.

    According to accusations by the procuratorate in Changchun, between 2006 and 2023, Ling took advantage of his positions to seek benefits for certain units and individuals in project contracting, business operations, and job adjustments. He was also accused of malpractice and abuse of power during the facilitation, review of related investments, and acquisition of equity, causing significant losses to state-owned companies and resulting in particularly severe damage to national interests.

    The court will conclude the trial at a later date.

  • Report: E-Cig Market to Reach $23B by 2029

    Report: E-Cig Market to Reach $23B by 2029

    The E-cigarette market is projected to grow from its current $18.98 billion to $23.15 billion by 2029, an increase of 3.4%, that according to the “E-Cigarette Market Research Report 2020-2029” that was released today.

    The global e-cigarette market is highly competitive, characterized by the presence of key players such as Altria Group, British American Tobacco (BAT), Imperial Brands, and Japan Tobacco International (JTI). With the declining sale of traditional cigarettes due to increasing health awareness and regulatory pressures, such companies have aggressively entered the e-cigarette market, pushing innovation and technology.

    The global e-cigarette market continues to see user-friendly products introduced that are popular with beginners, as well as open systems including mods that offer greater customization options for experienced vapers. Advancements in battery technology and improvements in e-liquid formulation have likewise helped advance the vaping experience.

    Governments, non-profit organizations, and healthcare providers have for decades been pushing awareness against the health risks of smoking, which is positively impacting the e-cigarette market.

  • Zimbabwe farmers nearing shisha tobacco target

    Zimbabwe farmers nearing shisha tobacco target

     Cavendish Lloyd Zimbabwe’s chief executive officer, Dr. Rebecca Manford, welcomed the government’s extension of the seedbed destruction date to January 15, saying it would allow more farmers to continue transplanting as the nation approaches its shisha tobacco target.

     “For the 2024-25 season, the target is 514 hectares, and so far, 450 have been planted, making the set goal achievable,” Manford said. “Cavendish Lloyd has contracted 149 growers to produce a target yield of 775,000 kilograms, and with the ongoing support to farmers, we are optimistic of achieving this goal while ensuring a high-quality crop.”

    Now in its third year in production in Zimbabwe, Manford said the nation could become a significant player in the global shisha tobacco market with the crop driving economic growth and farmer empowerment. For this to happen, the farmers need the government to continue with its incentives which include expanding irrigation infrastructure, helping secure new export markets, and investing in research to develop high-yielding varieties, as well as subsidized inputs, loans, or grants. Cavendish Lloyd is currently the only registered and licensed shisha merchant by the Tobacco Industry and Marketing Board (TIMB).

    Statistics from TIMB show commercial shisha production rose from 110 hectares in 2022-23 to 407 hectares in 2023-24, totaling nearly 400,000 kilograms worth US$1.3 million.

    Prolonged dry spells and insufficient irrigation facilities made farmers hesitant to jump into full-scale production, however, recent rains have made a positive impact on the crop. Cavendish Lloyd has begun an awareness campaign to attract more growers, that includes technical training and engagement with stakeholders to promote sustainable production solutions.

  • Texas Judge Blocks FDA’s Warning Label Requirements

    Texas Judge Blocks FDA’s Warning Label Requirements

    A federal judge in Texas sided with R.J. Reynolds and other tobacco companies in finding the U.S. Food and Drug Administration (FDA) went beyond its authority by requiring packaging and advertising to contain 11 specific warnings.

    U.S. District Judge J. Campbell Barker, in Tyler, Texas, blocked the FDA from enforcing a looming requirement that cigarette packages and advertisements contain graphic warnings illustrating the health risks of smoking. He said those warnings go above and beyond the nine that Congress specified when in 2009 it passed the Tobacco Control Act, which gave the FDA the authority to regulate tobacco products and mandated adoption of the graphic warnings.

    Barker said not only did the FDA adopt two extra warnings beyond the nine the law required, but it only used the exact text Congress required for two of the remaining nine.

    The FDA argued it has the authority to adjust the format, type, and text of any required labels, but Barker said that power was limited, and even if the FDA was allowed to adjust the nine warnings, it could not add the extra two.

    “Courts are not free to second-guess policy decisions expressed in the plain text of the congressional enactments,” Barker wrote.

    The judge delayed the rule’s effective date pending further litigation, preventing the FDA from proceeding to enforce it starting in February 2026. It marked the second time Barker has blocked the FDA’s warning label rule. In 2022, the judge concluded the requirement violated the companies’ speech rights under the U.S. Constitution’s First Amendment.

  • St. Louis: Veto Overturned in Tobacco Sale Flap

    St. Louis: Veto Overturned in Tobacco Sale Flap

    Some tobacco sales can continue near schools in St. Louis (Missouri) County after the county council overrode a veto from County Executive Sam Page. The issue goes back to a 2019 ordinance that banned new tobacco licenses in the county from stores within 1,000 feet of a school. Existing stores that sold tobacco were exempt from the ordinance, but if the owner sold the business, the new owner would be barred from getting a new license.

    The goal was to phase out all tobacco sales near schools but the county council overturned the law in 2023, allowing businesses to pass on the tobacco licenses to new owners. Page vetoed that move by the county council but now the council overrode the veto.

    Councilwoman Shalonda Webb says the move by the council allows existing tobacco licenses to be transferred to new owners when a store near a school is sold but it does not allow new licenses to be issued to different businesses. The St. Louis County Health Department has defended a total ban of tobacco products near schools but companies argue a total ban is unfair because they say businesses without a tobacco license are less valuable.

  • FDA Proposes Limiting Nicotine Levels

    FDA Proposes Limiting Nicotine Levels

    The U.S. Food and Drug Administration (FDA) today issued a proposed rule that, if finalized, would make cigarettes and certain other combusted tobacco products minimally or nonaddictive by limiting the level of nicotine in those products. If finalized, the United States would be the first country globally to take such a stand. The FDA first announced its intent to propose such a rule in 2018, and now intends to seek input on the proposal, including through public comment and the FDA’s Tobacco Products Scientific Advisory Committee.

    Nicotine is the primary addictive chemical in tobacco products that keeps people using the products. In the case of combusted products, such as cigarettes, nicotine addiction leads to users being repeatedly exposed to a toxic mix of chemicals in the smoke that cause disease and death. Based on the scientific evidence outlined in the proposed rule, the proposed nicotine level for cigarettes and certain other combustible tobacco products would be low enough to no longer create or sustain addiction. Importantly, a large body of research also shows that reduced nicotine content cigarettes do not lead smokers to compensate for lower nicotine by smoking more.

    “Multiple administrations have acknowledged the immense opportunity that a proposal of this kind offers to address the burden of tobacco-related disease,” said FDA Commissioner Robert M. Califf, M.D. “Today’s proposal envisions a future where it would be less likely for young people to use cigarettes and more individuals who currently smoke could quit or switch to less harmful products. This action, if finalized, could save many lives and dramatically reduce the burden of severe illness and disability, while also saving huge amounts of money. I hope we can all agree that significantly reducing the leading cause of preventable death and disease in the U.S. is an admirable goal we should all work toward.”

    Based on the FDA’s population health model, by the year 2100, this nicotine product standard could prevent approximately 48 million U.S. youth and young adults from starting smoking. The model also projects that more than 12.9 million people who smoke cigarettes would stop doing so one year after the rule becomes effective, including those who would completely switch to noncombusted tobacco products; this estimate increases to 19.5 million people within five years of the rule being finalized. Additionally, the model estimates that by the year 2060, the product standard would result in 1.8 million tobacco-related deaths averted, rising to 4.3 million deaths averted by the end of the century.

    The proposed rule would not ban cigarettes or any other tobacco products. The FDA is proposing to cap the nicotine level at 0.7 milligrams per gram of tobacco in cigarettes and certain other combusted tobacco products, which is significantly lower than the average concentration in these products on the market today. The FDA’s proposal would apply to cigarettes, cigarette tobacco, roll-your-own tobacco, most cigars (including little cigars, cigarillos, and most large cigars), and pipe tobacco. The proposed rule does not include e-cigarettes, nicotine pouches, noncombusted cigarettes (such as heated tobacco products that meet the definition of a cigarette), waterpipe tobacco (hookah), smokeless tobacco products, or premium cigars.

    “Today, we’re taking a critical step in the rulemaking process by providing the public with a proposal they can review and engage on,” said Brian King, Ph.D., director of the FDA’s Center for Tobacco Products. “This proposal allows for the start of an important conversation about how we meaningfully tackle one of the deadliest consumer products in history and profoundly change the landscape of tobacco product use in the United States.”

  • BAT Investor Sells Off £1.2 Billion Stake

    BAT Investor Sells Off £1.2 Billion Stake

    Reinet Investments SCA agreed to sell its 2% stake in British American Tobacco (BAT) for £1.22 billion ($1.49 billion), exiting its long-running position in the company. Reinet said its offering 43.3 million shares in the London-listed group via JPMorgan Chase & Co. priced at £28.20 per share, marking a 3.9% discount to the prior closing level.

    BAT shares fell as much as 2.9% on Tuesday for its sharpest intraday drop since October.

    “A plan by BAT long-term shareholder Reinet to sell its 2% holding in a share placing shouldn’t affect the tobacco company’s commitment to delivering a £900 million share buyback in 2025,” wrote Bloomberg Intelligence analyst Duncan Fox.

    Luxembourg-based Reinet was formed out of Swiss luxury group Richemont in 2008. The tobacco company stake amounted to about one-fourth of Reinet’s net asset value, according to a report last year. Reinet said it intends to use the proceeds from the sale for its “ongoing investment activity.”

  • Study: Advertising Bans Significantly Reduce Smoking Rates

    Study: Advertising Bans Significantly Reduce Smoking Rates

    A recent study published in The Cochrane Database of Systematic Reviews has found that comprehensive bans on tobacco advertising, promotion, and sponsorship are effective in reducing smoking prevalence. The research indicates that such bans can significantly lower the odds of people smoking, highlighting the importance of implementing and enforcing comprehensive advertising restrictions to curb tobacco use.

    The study analyzed data from various countries with differing levels of advertising restrictions. Findings suggest that nations enforcing complete bans on tobacco advertising and sponsorship experience a more substantial decline in smoking rates compared to those with partial or no bans.

    The researchers advocate for the expansion of comprehensive advertising bans worldwide, emphasizing that such measures are crucial in reducing tobacco consumption and preventing smoking initiation, particularly among youth. The study supports the World Health Organization’s Framework Convention on Tobacco Control, which recommends comprehensive bans as part of a global strategy to combat tobacco-related health issues.