Author: Taco Tuinstra

Malawi Now a Full Party to FCTC

Photo: Taco Tuinstra
Malawi is now a full party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC). The government ratified the FCTC in August 2023, and the treaty took effect Nov. 16.
“WHO congratulates Malawi for this historic step and reaffirms its strong commitment to collaborating closely with the government to achieve the shared goals of the WHO FCTC,” said Neema Rusibamayila Kimambo, WHO representative in Malawi, in a statement. “Together, we will continue our collective efforts to protect public health and work towards a tobacco-free future.”
The WHO said it is ready to provide extensive support to ensure Malawi’s successful implementation of the convention and welcomes the nomination of a government liaison to work closely with the FCTC Secretariat.
The FCTC, which entered into force in February 2005, provides an internationally coordinated response to combating the health impact of tobacco, setting out specific steps for governments addressing tobacco use and production.
The treaty also promotes crop replacement and diversification.
Malawi is one of the world’s tobacco-dependent economies. Depending on the season, tobacco accounts for between 40 and 70 percent of the country’s export earnings.
In a special report earlier this year, Tobacco Reporter examined industry efforts to help Malawi strengthen its economy by developing supplemental value chains, such as groundnuts, bananas and mushrooms.
November 20, 2023
Egypt Releases Details of Eastern Sale

Photo: MamdouhKamals
Egypt’s Ministry of Public Enterprises has released details of the sale of a 30 percent stake in Eastern Co. to Global Investment Holdings Co (GIHC), reports Ahram Online.
The Emirati company will pay EGP19.336 billion ($625 million) for 6.689 billion shares of Eastern Co. The payment will be made in U.S. dollars in two transactions. The first payment will be made upon conclusion of the deal in the amount of EGP16.403 billion, and the second payment will be made in the amount of EGP2.932 billion on an agreed upon schedule.
GIHC has also pledged to provide $150 million to procure tobacco required for Eastern Co.’s manufacturing processes.
This deal is part of Egypt’s broader initial public offering program aimed at selling stakes in 35 state-owned companies to strategic investors by the end of June 2024.
In February, the government announced a list of 32 companies for privatization, subsequently adding Eastern Company, Telecom Egypt, and Ezz El-Dekheila. The privatization program is a component of Egypt’s commitment under its $3 billion loan program with the International Monetary Fund. The government hopes to attract $5 billion through privatization between October 2023 and June 2024.
November 20, 2023
Pakistan Urged to Swap Tobacco For Food

Photo: Taco Tuinstra
Pakistan should replace tobacco with food crops, according to experts in nutrition, agriculture and the environment, reports UrduPoint.
Speaking with the Associated Press of Pakistan, the specialists said such a transformation is necessary not only to improve public health but also to overcome the food insecurity faced by more than one third of the population.
In 2018, 36.9 percent of Pakistanis struggled with food insecurity, data from the National Nutrition Survey reveals. Massive floods at home and war in Ukraine have plunged an additional 2.5 million people into hunger according to the Pakistan Fruits and Vegetable Importers and Exporters Association (PFVA).
The group says Pakistan now relies on imports for food items such as wheat, pulses, chickpeas, garlic and ginger. However, a prevailing shortage of hard currency makes it difficult for importers to obtain letters of credit.
PFVA Chief Waheed Ahmad urged policymakers to capitalize on this year’s World No Tobacco Day theme, “Grow Food, Not Tobacco.”
Tobacco is grown in all four provinces and is a significant part of Khyber Pakhtunkhwa’s economy, where farmers cultivate approximately 30,000 ha of the golden leaf.
Taimoor Khan, general secretary of the Khyber Pakhtunkhwa Association for Excellence in Agriculture, suggested that if half of this area were converted into growing a new variety of garlic, NARC G1, the farmers would make a remarkable profit.
Khan also called into question the economic contribution of tobacco farming, which is believed to generate revenues of PKR120 billion annually ($416.24 million). The cost of dealing with the health impact of tobacco consumption exceeds the tobacco tax take by a factor of three, he said.
“By transforming tobacco farming to food production, we can create ripple effects that promotes food security, improves public health, contributes to the overall well-being of our communities and benefit the environment,” said Aftab Alam Khan, CEO of Resilient Future International.
The speakers also cited research showing that tobacco cultivation requires heavy use of pesticides and fertilizers, which causes soil degradation, thus lowering the used land’s capacity to grow other crops.
According to the National Health Services in 2018, almost 23.9 million adults currently use tobacco in any form in Pakistan. Around 163,600 people die each year in the country due to tobacco and almost 31,000 of these deaths are due to exposure to second-hand smoke.
Critics of “Grow Food, not Tobacco” campaign have suggested that the theme creates a false dichotomy, as tobacco and food production are not mutually exclusive.
November 19, 2023
Malaysia Minister Vows to Table Smoking Bill

Photo: somemeans
Malaysia’s health minister has vowed to table the Control of Smoking Products for Public Health Bill 2023 before the end of the current parliament’s session on Nov. 30, reports The Star.
“God-willing, I assure you that we will table this Bill before the end of the current Parliament session,” Zaliha Mustafa was quoted as saying.
His comments came after the Attorney General Chambers reiterated an earlier statement that the Generational Endgame Ban (GEG) clause of the proposed legislation can be challenged in court.
The GEG seeks to ban tobacco and vape products for anyone born on or after Jan. 1, 2007.
The Attorneys General Chambers insist this provision contravenes Article 8 of Malaysia’s constitution, as it creates unequal treatment before the law between a person born before that date and individuals born after the date.
It was unclear from contradictory reports whether the bill heading to parliament still includes the GEG. An earlier report by CodeBlue suggested the clause had been removed in response to the constitutional concerns raised by the Attorney General Chambers.
The legislation also includes provisions on registration of tobacco products, advertisement, packaging and smoke-free places, among other items.
November 19, 2023
Tobacco Key Contributor in Thailand: Report

Photo: PiyawatNandeenoparit
The tobacco industry remains an important contributor to Thailand’s economy, reports The Bangkok Post, citing a report by Oxford Business Group.
In 2022, the tobacco industry contributed nearly THB60 billion ($1.71 billion) in excise taxes—12 percent of Thailand’s total tax take that year. The previous year, Thailand exported THB7.4 billion worth of tobacco and related products.

Annually, Thailand directs THB4.1 of its tobacco-related tax collections to the Thai Health Promotion Foundation.
“In addition to being a significant contributor to Thailand’s economy, our research found that Thailand’s tobacco sector is an important employer and is crucial to rural communities and livelihoods, especially in the north and northeast of Thailand,” Marc-Andre de Blois, director of PR for Oxford Business Group was quotes as saying.
The industry supports nearly 50,000 households directly and indirectly, according to De Blois, who says that the crop is resilient to floods, droughts and poor soil conditions.
The Oxford Business Group report also highlights the challenges presented by the illicit cigarette trade in Thailand. According to the Thai Tobacco Trade Association, illicit trade through online channels grew 97 percent between July 2022 and September 2022.
Data from the Excise Department shows that illicit cigarettes accounted for 30 percent of the Thailand’s tobacco market in mid-2021.

November 17, 2023
Alexander Solomakhin To Lead Donskoy Tabak

Photo: JackF
Japan Tobacco International has appointed Alexander Solomakhin as director of its Donskoy Tabak factory in Rostov-on-Don, Russia, reports Interfax, citing data from the Unified State Register of Legal Entities.
Prior to his current position, Solomakhin was director of sales for JTI’s southern Russia region.
JTI Donskoy Tabak was previously headed by Sergei Lavrikov, who is currently director of the Pereslavl Tabak tobacco factory.
JTI closed the acquisition of Donskoy Tabak, which was previously part of Agrokom Group, in 2018 and completed its merger with JTI Russia in December 2021. After the reorganization, production at the Rostov factory was taken over by JTI Donskoy Tabak.
JTI Russia is the largest producer of tobacco products in Russia.
November 17, 2023
GIHC Completes Eastern Co. Share Purchase

Photo: artmim
Global Investment Holding Co. (GIHC) has completed its acquisition of a 30 percent share in Eastern Co., according to reports by Reuters and Ahram Online. The United Arab Emirates company paid EGP16.4 billion ($531.6 million) for its stake in the Egyptian tobacco firm.
First announced in September, the deal is part of Egypt’s floundering privatization program. In December 2022, the government promised the International Monetary Fund that it would allow private companies a greater role in Egypt’s economy in exchange for a $3 billion, 46-month financial support package.
In February, the government announced a list of 32 companies for privatization, subsequently adding Eastern Co., Telecom Egypt, and Ezz El-Dekheila to the roster, Ahram Online reported in a separate article. The government hopes to attract $5 billion through privatization between October 2023 and June 2024.
While it has announced a number of sales to foreign investors in principle, the sale to GIHC is the first to go through.
Under the agreement, the Emirati company will provide Eastern Co. with $150 million to procure tobacco materials for manufacturing.
In addition to CIHC, Eastern Co.’s primary shareholders are the state-owned Holding Company for Chemical Industries (20.9 percent), the Allan Gray Equity Fund (7.2 percent), the shareholders union of the Eastern Co. (6 percent), with the remaining 36 percent of shares trading freely on the stock exchange.
November 16, 2023
Black Farmers Petition Against Menthol Ban

Photo courtesy of John Boyd
The National Black Farmers Association (NBFA) is calling on the Biden Administration to end its proposed ban on menthol tobacco products, calling it a misguided federal policy that will devastate Black farmers and rural communities. Representing 130,000 members across 47 states, the NBFA has launched a nationwide Change.org petition to rally support.
“The White House is about to hand down another mandate that will put more Black farmers out of business,” said NBFA Founder and President John Boyd Jr. in a statement. “The proposed federal ban targets adult use of menthol tobacco products—the kind of tobacco products preferred and grown by Black farmers. This will rob small towns and businesses of critical income.”
The process to finalize a Food and Drug Administration rule is expected within weeks. If enacted, the ban could lead to widespread unemployment, loss of income and assets, and even the potential extinction of generations of farming families, according to the NBFA. “This is particularly true for Black farmers who are already struggling due to misguided federal policies and a lack of relief or alternatives,” the organization wrote.

The White House is about to hand down another mandate that will put more Black farmers out of business.
John Boyd, president, NBFA
“Few workers have been hit harder in recent years than Black farmers, whose numbers continue to dwindle. In 1910, about 14 percent of U.S. farmers were Black, owning more than 16 million acres. According to the latest available Census of Agriculture data, only one in 100 farmers is black, owning a total of less than 5 million acres.”
The association previously represented 1 million Black farmers across the country, a figure which now stands at over 130,000 across 47 states.
“We know all too well how misguided policies from the federal government have, time and time again, put another nail in the coffin of Black farmers and rural towns across America,” added Boyd. “My members stand on the brink of disaster. We must find a better solution that does not further damage America’s shrinking rural towns or put additional pressure on hardworking farmers. This NBFA petition allows us to speak out—we hope the White House will hear the concerns of generations of Black farmers.”
Beyond the economic impact, opponents of the ban on menthol tobacco products note measure would criminalize the sale, distribution and possession of menthol cigarettes. This criminalization, they warn, could result in mandatory minimum sentences, revocation of parole, fines, the loss of one’s right to vote, or even deportation, among other criminal legal consequences.
A study by Columbia University’s Mailman School of Public Health reveals that 40 percent of adults who use cigarettes smoke menthol and that over 80 percent of Black smokers use menthol.
November 16, 2023
U.K. Urged to Track Tobacco Lobbying
Photo: GR/peopleimages.com
The United Kingdom should introduce a legally binding and publicly accessible register that covers all lobbying and policy influence activity to reduce the tobacco industry’s influence on policymaking, according to the Tobacco Control Research Group (TCRG) at the University of Bath.
The call comes after the group’s most recent Tobacco Industry Interference Index (UKTI) revealed that the U.K has become more susceptible to industry influence.
TCRG researchers measured the intensity, frequency, and severity of incidents of tobacco industry interference against 20 indicators between April 2021 and March 2023. In the most recent survey, which covered the period, the U.K. scored 48 out of a possible 100 in the 2023 ranking, compared to a score of 32 in 2021, where a higher score means greater tobacco industry interference.
According to the authors, this year’s index highlights several areas of concern:
A lack of transparency across government about its interactions with the tobacco industry and no requirement for the tobacco industry and its associates to register with the government.
A wide range of “unnecessary” interactions between government officials, including senior ministers, and tobacco companies.
No government ban on tobacco industry activities described as “socially responsible”
Tobacco companies attempt to influence policy by submitting responses to public consultations and officially commissioned policy reviews, including on issues of tobacco control.
“Our two-year research highlights a sharp increase in activity by tobacco companies to interfere with health policymaking,” said Raouf Alebshehy, lead author of the UKTI report, in a statement.
“Unfortunately, this has been coupled with a lack of awareness and absence of implementation of measures protecting public health from the industry interference. Except for the U.K.’s health agencies and departments, we have evidence of incidents of tobacco industry interference at the most senior political levels.”
“The Tobacco Interference Index rightly highlights that the U.K. needs to improve cross government understanding about the processes which must be used to protect public policy from tobacco industry interference,” said Deborah Arnott, CEO of Action on Smoking and Health (ASH) UK.
“Our ministry of health, which is the custodian for the U.K. of the WHO Convention on Tobacco Control, has already moved to address this through publication in June of guidance to all U.K. government officials on just this issue. We feel confident that the next U.K. Tobacco Industry Interference Index will show the U.K. moving back up the rankings.”
November 15, 2023
Javier Estades Reelected

Photo: CAA
The Cigar Association of America (CAA) has reelected Tabacalera USA CEO Javier Estades as its chairman.
“Chairman Estades has been a leader in advancing public policy for the Cigar industry at the federal, state and local levels,” said CAA President David Ozgo in a statement. “He helped guide us to significant victories on a number of critical issues, which his peers recognized by reelecting him for another term as chairman. I personally appreciate his partnership, guidance, and support.”
“I am excited to continue as Chairman of CAA, and proud of all the big wins we have achieved for the cigar industry,” said Estades. “We still have challenges ahead, but CAA is ready to continue fighting against improper, overreaching efforts by FDA and state and local governments.”
As head of Tabacalera USA, Estades oversees a number of premium cigar entities, including Fort Lauderdale-based premium cigar company Altadis USA, the distributor and marketer of classic handmade premium cigars such as Montecristo, Romeo y Julieta and H. Upmann. He is also responsible for JR Cigar, one of the largest online retailers for premium cigars, cigar accessories, humidors, etc. and Casa de Montecristo, the premier modern cigar store featuring a large selection of premium cigars, smoking accessories, walk-in humidors, lounges and full bars across the U.S.
After joining the U.S. cigar industry in 2011, he was first elected chairman of the CAA in November 2015.
CAA is a leading national trade association for the U.S. cigar industry, representing the full range of the cigar industry. The organization supports its members by helping them successfully navigate through a challenging business environment, utilizing a broad network of advocates, who engage officials at the federal, state and local levels of government.
“Cigars are more than a great American tradition—they are a powerful contributor to the American economy, responsible for billions of dollars in annual revenue and thousands of quality jobs,” Ozgo noted.
Originally established in New York City in 1937 as Cigar Manufacturers of America, CAA’s roots date to predecessor organizations prior to 1900. The group is now based in Washington, D.C.

November 14, 2023