Author: Taco Tuinstra

Morocco to Hike Duties on Disposables

Photo: alexlmx
Morocco will increase customs duties on e-cigarettes under the 2024 budget, reports Morocco World News.
The import duties would hike the levies on disposable electronic cigarettes from 2.5 percent to 40 percent. The goal of the increase is to apply the same import duty rate to disposable electronic cigarettes as that applied to other electronic cigarettes for the 2023 fiscal year, according to the Ministry of Economy and Finance.
The 2024 draft budget also proposes an increase in import duty from 2.5 percent to 30 percent for certain consumer products and equipment. This increase would “strengthen the protection of local production of these products and equipment and promote the establishment of production units in Morocco.”
October 23, 2023
IQOS and Zyn boost PMI quarter

Photo: Swedish Match
Philip Morris International reported net revenues of $9.14 billion in the third quarter of 2023, up 13.8 percent from the comparable 2022 quarter. Its operating income rose 13.5 percent to $3.37 billion.
PMI sold 193.6 billion cigarettes and heated-tobacco units in the third quarter of 2023, up 2.2 from the 2022 quarter. Shipments of heated-tobacco units alone increased 18 percent to 32.5 billion. Oral product shipments jumped 100 percent to 209 million cans, largely as a result of PMI’s 2022 acquisition of Swedish Match.
Smoke-free products generated $3.3 billion in net revenues during the quarter, an increase of 35.6 percent over the comparable 2022 period. Smoke-free products now account for 36.2 percent of the company’s total net revenues.
PMI estimated the total number of IQOS users at approximately 27.4 million by the quarter’s end. Approximately 19.7 million of those had switched to IQOS and stopped smoking, according to the company.
Zyn nicotine pouch shipment volume in the U.S. totaled 105.4 million cans, representing growth of 65.7 percent versus third-quarter 2022 Swedish Match shipments of 63.6 million cans.
“We delivered a very strong performance in the third quarter, surpassing $9 billion in quarterly net revenues for the first time and generating record quarterly adjusted diluted EPS [earnings per share] of $1.67, representing currency-neutral growth of 20.3 percent,” said PMI CEO Jacek Olczak in a statement.
“This reflects continued excellent business momentum, driven by strong IQOS performance, resilient combustible trends and the exceptional growth of Zyn, which has surpassed our expectations yet again.”
October 23, 2023
PMI Applies to Sell IQOS Iluma in the U.S.

Photo: vfhnb12
Philip Morris International Oct. 20 submitted premarket tobacco product applications (PMTAs) and modified risk tobacco product applications (MRTPAs) for IQOS Iluma heated tobacco products with the U.S. Food and Drug Administration (FDA).
IQOS Iluma products are PMI’s most-innovative heated tobacco products. They deliver substantially similar reductions in the formation of harmful and potentially harmful constituents as earlier versions of IQOS products authorized by FDA
According to PMI, IQOS Iluma has demonstrated higher rates of full switching by adults who smoke and improved consumer satisfaction in many countries.
IQOS Iluma products rely on a fundamentally different heating technology from previous versions of IQOS products and contain numerous technological advancements including improved device and battery longevity.
IQOS Iluma products are currently available in 27 markets internationally
PMI’s applications are supported by a thorough scientific assessment, including aerosol chemistry, in vitro toxicology, a pharmacokinetic study, and consumer perception and behavior studies, as well as the comprehensive scientific dataset generated with previous versions of the IQOS system
The IQOS Iluma devices operate on the Smartcore Induction System that heats tobacco from within Terea Smartcore Sticks—heated tobacco sticks designed to be used only with IQOS Iluma devices
PMI has submitted applications for three Iluma devices and five variants of the tobacco sticks: Terea Blue, Terea Green, Terea Sienna, Terea Bronze, Terea Amber

Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S.
Stacey Kennedy, president Americas and CEO of PMI’s U.S. business
“Tens of millions of American adults today smoke cigarettes and will likely continue to do so. They should have a range of scientifically substantiated better alternative nicotine products to choose from, and PMI is committed to providing them with new choices,” said Stacey Kennedy, president Americas and CEO of PMI’s U.S. business, in a statement.
“Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S. and drive a rapid decrease in smoking rates among adults. These are strong applications, and we urge the FDA to prioritize them for review.
“Since 2008 PMI has invested more than $10.5 billion to scientifically research, develop, and commercialize smoke-free products, an investment that was further bolstered last year through our acquisition of Swedish Match. We are focused on providing adults who smoke with alternatives that can reduce their risks compared with smoking and help make America cigarette-free.”
PMI will have the full rights to commercialize all IQOS products in the U.S. as of April 30, 2024, per the terms of an agreement with Altria Group, Inc. ending the companies’ commercial relationship covering IQOS in the U.S.
October 21, 2023
Packaging Market to Top $21 Billion

Photo: Taco Tuinstra
The global tobacco packaging market will reach a value of around $21.05 billion by 2029 increasing at a compound annual growth rate of 3.2 percent, according to a new report by Precedence Research.
The Asia Pacific region has established itself as the dominant market, commanding a 34 percent market share in 2022, and it is poised to experience the most rapid growth throughout the projected period. In particular, China stands out as the largest tobacco exporter and manufacturer. The nation is projected to become the global leader in the tobacco packaging market by 2032.
Many tobacco packaging developments are driven by regulation, according to Precedence Research. For instance, in July 2022, India’s Ministry of Health and Family Welfare, enacted regulatory changes to the Cigarettes and Other Tobacco Products (Packaging and Labeling) Rules, 2008, introducing updated health warning requirements for all tobacco product packaging within the country.

Numerous countries have instituted stringent measures to reduce smoking rates and safeguard public health. These regulations encompass requirements for graphic health warnings, mandates for plain packaging, and strict limitations on tobacco advertising.
Meanwhile, suppliers of tobacco packaging are shifting toward recyclable and eco-friendly solutions. This transition reflects a broader global trend towards sustainability and environmental consciousness, driven by consumer preferences, regulatory pressures and corporate responsibility initiatives, according to Precedence Research.
In March 2023, ITC of India reaffirmed its commitment to sustainability, emphasizing its ongoing endeavors to minimize plastic waste. The company said it reduced the plastic waste it generated by 60,000 metric tons. ITC is actively exploring environmentally friendly alternatives to single-use plastics in their tobacco product packaging, focusing on materials such as recyclable and biodegradable paperboards.

In April 2022, British American Tobacco introduced its Vype e-cigarettes in packaging crafted from a blend of recyclable paperboard and other materials. BAT has committed to an ambitious sustainability goal to ensure that all Vype packaging becomes fully recyclable by 2023.
In May 2022, Japan Tobacco announced its intention to render all cigarette packaging recyclable by 2025. This initiative involves the utilization of a hybrid composition consisting of recyclable paperboard and plastic materials.
Like many other industries, the global tobacco packaging market has undergone substantial disruptions and transformations due to the Covid-19 pandemic. Lockdowns, travel restrictions and labor shortages disrupted the manufacturing and transportation of packaging materials. This resulted in delays, extended lead times, and increased manufacturer costs. To address these challenges, companies adapted by diversifying their supplier base, optimizing inventory management and exploring alternative sourcing options.
Covid-19 has also significantly altered consumer behavior, consequently impacting the tobacco industry and, by extension, the packaging market. Measures such as social distancing, health concerns and economic uncertainties led some smokers to reduce or quit smoking altogether. This shift in demand prompted tobacco companies to reassess their product offerings and packaging strategies. Some manufacturers started offering their products in smaller pack sizes, for example.
October 20, 2023
ITC Reports ‘Resilient’ Cigarette Business

Timon Schneider/Wirestock
ITC’s cigarette business demonstrated resilience in the quarter that ended Sept. 30, the company announced in a trading update.
Net segment revenue and segment profit before tax and interest were up 8.5 percent and 8 percent year-on-year, respectively.
Stable fiscal policies, along with a crackdown by law enforcement on illicit tobacco sales, allowed the company to claw back sustained volumes from the black market, boosting demand for Indian tobaccos and bolstering revenue to the exchequer.
Meanwhile, ITC continued fortifying its product portfolio through innovation, premiumization and enhancing product availability, “backed by superior on-ground execution.”
Several recently launched brand variants launched continue to perform well, according to the company.
While the cost of leaf tobacco and inputs escalated during the quarter, the company was able to mitigate these developments through improved mix, strategic cost management and calibrated pricing.
During the quarter, ITC’s IndiVision subsidiary (IIVL) received regulatory approvals for its facility to manufacture nicotine and nicotine derivative products conforming to U.S. and EU pharmacopoeia standards.
ITC believes that its unique crop development capabilities, along with its ability to provide complete traceability and assure sustainability across the value chain, will establishing IIVL as a trusted partner for high quality nicotine/nicotine derivative products.
For the company’s paperboards, paper and packaging segments, the quarter was characterized by competition from low-priced Chinese suppliers and muted demand in export markets, along with a sharp reduction in global pulp prices. Domestic demand was also relatively subdued in certain discretionary categories
ITC believes the drop in net sales realization and global pulp prices are likely to have bottomed out, however, and says it detected “green shoots of revival” in demand toward the end of the quarter
October 20, 2023
NJOY Sues Disposable Vapes Manufacturers

Photo: alexkich
NJOY has filed litigation against 34 manufacturers, distributors and online retailers of illicit disposable e-vapor products that are unlawfully marketed and sold in California and other U.S. states. The suit alleges that these companies manufacture, distribute, market and sell products that violate California’s flavor ban law, are unlawful under federal law and subject to action by the U.S. Food and Drug Administration, and illegally compete against companies that comply with state and federal laws.
The suit seeks a nation-wide injunction against the import, marketing and sale of these illicit products and significant compensatory and punitive damages.
“These companies knowingly violate federal and state laws and need to be held accountable,” said Murray Garnick, executive vice president and general counsel of NJOY’s parent company, Altria Group, in a statement. “Today there are two markets—one for those who play by the rules and one for those who flagrantly ignore them. We are taking this action because the current state of the illicit e-vapor market is intolerable, and we must see more action from FDA and others.”
Filed in the United States District Court for the Central District of California, the litigation is brought under four claims: unfair competition, false advertising, false advertising in violation of the Lanham Act and violation of the Prevent All Cigarette Trafficking Act of 2009.
Named defendants in the suit manufacture and distribute illicit disposable e-vapor products which include brands such as Breeze, Elf Bar, EB, EB Create, Esco Bar, Flum, Juice Box, Lava Plus, Loon, Lost Mary, Mr. Fog and Puff Bar. U.S. defendants include companies doing business in Arizona, California, Delaware, Florida, Michigan, Minnesota, New Jersey, New York and Texas. Foreign Defendants are all based in China.
None of the Defendants has received premarket authorization from the FDA, according to NJOY.
Despite a ban on the sale of flavored tobacco products that went into effect in December 2022, flavored vapor products make up more than 97 percent of the California market according to a recent study commissioned by Altria.
NJOY’s action against disposable vapor product manufacturers follows a complaint to the International Trade Commission by R.J. Reynolds Tobacco Co. charging multiple manufacturers, distributors and retailers of disposable vaping devices with unfair importation.
October 19, 2023
Coal to Tackle Cost and Deforestation in Zim

Photo: Michal
Zimbabwe’s Tobacco Industry & Marketing Board (TIMB), Kutsaga research station and Hwange Colliery Co. have jointly developed a special coal facility to help reduce tobacco farmers’ production costs and address deforestation concerns, reports the Zimbabwe Independent.
The facility will benefit TIMB-registered growers with active grower numbers. TIMB said negotiations were underway with transporters to ensure that the coal is delivered to farmers on time and at affordable rates.
“The high cost of tobacco production is one of the main challenges bedeviling tobacco farmers in Zimbabwe,” TIMB spokesperson Chelesani Tsarwe told NewsDay Farming, referring to the prices of production inputs, energy and other farming necessities.
The coal facility, she said, will help tobacco farmers realize significant savings in the curing process.
Zimbabwe Tobacco Growers Association president George Seremwe welcomed the arrangement. “The outcry has been us tobacco farmers through our associations, lobbying and advocating reduction on the cost of production and they started sort of goal rolling by engaging different suppliers in this case, Hwange Colliery Co. to come up with cheaper modalities, better way of cushioning the farmer in the form of reduction on the cost of production,” he said. “We are very happy and pleased to hear such an initiative happening.”
More than 70 percent of Zimbabwe’s tobacco crop is cured using unsustainable wood, with deforestation increasing, according to Zimbabwe Tobacco Association CEO Rodney Ambrose.
“While the industry embarks on reforestation programs, more efficient curing systems and alternate sustainable curing fuels, stop-gap measures need to be put in place in order to ensure that we maintain our production levels and protect the livelihoods of thousands of farmers,” he said.
“One of the measures is coal, and to reduce the cost of purchasing and delivering the product to farmers.”
Zimbabwe achieved a record crop of 296 million kg of tobacco for the 2022-2023 season, earning nearly $1 billion from leaf sales.
This year’s sales volumes put Zimbabwe on track to achieve its target of 300 million kg by 2025, as formulated in the Tobacco Value Chain Transformation Plan, ahead of schedule.
October 19, 2023
Researchers Identify Flavors Used to Quit

The most interesting data is that when a smoker decides to quit smoking using modified-risk electronic tools, they gravitate toward flavors different from tobacco.
Konstantinos Farsalinos, co-author
A recent survey revealed that the most utilized flavors to quit smoking in the U.S. are those of fruit, baked goods and chocolate.
A team of European researchers affiliated with the Center of Excellence for the Acceleration of Harm Reduction (CoEHAR), the University of West Attica and the University of Patras conducted an online survey on a sample of about 70,000 adult vapers in the U.S. The study focused on comparing flavor use between current-smoking vapers (dual use) and former-smoking vapers and on specifically examining patterns of flavor use among former-smoking vapers at the time of quitting smoking.

Graph: CoEHAR
“This is the largest survey ever conducted on the use of electronic cigarettes in terms of sample size,” said study author Konstantinos Farsalinos in a statement. “The most interesting data is that when a smoker decides to quit smoking using modified-risk electronic tools, they gravitate toward flavors different from tobacco, with a clear preference for fruit, dessert and chocolate flavors. We can deduce, therefore, that these specific flavors are more useful for those who want to quit or avoid relapses.”
When it comes to regulating vape flavors, Riccardo Polosa, founder of the CoEHAR, urged lawmakers to strike a balance between the need to protect young people and the desire to help adult smokers quit.
October 19, 2023
TACJA launches nicotine pouches in Europe
TACJA has launched nicotine pouches in the United Kingdom, Switzerland and Sweden.
The products offer eight flavors in two taste series—Mellow and Frozen—and nicotine concentrations of 20 mg/g, 18 mg/g and 12 mg/g. According to TACJA, the products contain pharmaceutical-grade ingredients and comply with the European Union Good Manufacturing Practice.
“We are thrilled to introduce TACJA, offering a diverse range of flavors and a delightful sensory presence,” said Charles An of TACJA in a statement. “Our nicotine pouches are designed to provide users with moments of quality and unconstraint,” he added.
October 19, 2023
Call for Applications to THR Scholarship

Photo: zimmytws
Knowledge Action Change (KAC) is inviting students to apply for its tobacco harm reduction scholarship program (THRSP).
Successful candidates will receive a 12-month bespoke mentoring program to undertake a tobacco harm reduction-related project of their own design plus $12,000 in financial support. New scholars are also invited to the Global Forum on Nicotine in Warsaw, Poland, where they will learn more about tobacco harm reduction and meet leading figures from the field.
Applications for the 2024–2025 program close on Nov. 30, with 25 places available. On completion of the first scholarship, graduates of the THRSP potentially have access to up to a further three years of funded support from KAC through the one-year enhanced scholarship program and the two-year Kevin Molloy fellowship.
Potential scholars must complete a short online course and quiz about tobacco harm reduction at the applications portal before submitting their project ideas.
They can apply by following this link.
October 19, 2023