Author: Taco Tuinstra

Court Poised to Rebuff Land Claim Cutoff

Photo: alexlmx
Brazil’s Supreme Court is likely to rule against attempts by the country’s farm lobby to limit land claims by indigenous peoples to areas they occupied before 1988, according to Reuters.
The case stems from a dispute in Santa Catarina state where the government rejected a land claim by the Xokleng people, who were evicted by tobacco farmers from what was their ancestral land.
Congress has pushed ahead with bills allowing indigenous reservations only on land that was occupied by native communities when Brazil passed its constitution in 1988. The lower house passed a bill last month and its backers want the Senate to follow suit before the Supreme Court rules on the issue.
On Aug. 31, Justice Cristiano Zanin cast a crucial vote that all but ensures the 1988 cut-off date will be rejected by the court. Zanin said indigenous communities that were not present on their lands in 1988 may have been forced to leave.
September 1, 2023
FDA Urged to Prioritize Harm Reduction

Photo: New Africa
The R Street Institute is urging the U.S. Food and Drug Administration to prioritize harm reduction in its approach to tobacco regulation.
In a letter to FDA Center for Tobacco Products’ (CTP) Director Brian King, the organization suggested the agency should evaluate its past achievements, define its mission statement clearly and develop a science-based tobacco and nicotine policy. Additionally, it recommended applying product standards consistently across all tobacco and nicotine products.
The R Street Institute expressed concerns that the FDA’s proposed strategic goals may not address more immediate issues that could have a significant impact on public health. The group argued that the CTP should reflect on its initial goals and whether they have been achieved, such as setting clear standards for tobacco/nicotine products and effective enforcement processes.
The comments also stressed the importance of communicating the strengths and weaknesses of past CTP goals, defining the mission statement with clear measurables, and establishing evidence-based policy goals for tobacco harm reduction. The R Street Institute advocated for transparent and consistent education on tobacco harm reduction.
Lastly, the group urged the CTP to close gaps and loopholes in regulating tobacco and nicotine products, ensuring that all products are held to the same scientifically determined standards.
The R Street Institute is a nonpartisan organization dedicated to limited government.
September 1, 2023
Court Upholds IP Damages for Republic Tobacco
The U.S. Court of Appeals for the Eleventh Circuit on Aug. 22 upheld a multimillion dollar verdict against Diamond Wholesale and its owner, Raj Solomon, for infringing trademarks owned by Top Tobacco, Republic Technologies and Republic Tobacco, reports IPWatchdog.
In March 2022, a jury in the U.S. District Court of Georgia awarded Top Tobacco $11 million in damages against the wholesale company and its owner. Diamond Wholesale appealed the ruling, arguing that the district curt erred in excluding evidence, including witness testimony and invoices, that would have proven the retailer and its owner believed it was purchasing the counterfeit product from a legitimate seller, Star Importers, and that their infringement could therefore not have been intentional.
However, the Eleventh Circuit ruled that a “showing of intent or bad faith is unnecessary to establish a violation.”
Earlier this year, federal jurors in Atlanta awarded Republic Brands $2.3 million in statutory damages in a case about counterfeit tobacco rolling papers against Star Importers and ZCell & Novelties.
September 1, 2023
Court Upholds IP Damages for Republic
The U.S. Court of Appeals for the Eleventh Circuit on Aug. 22 upheld a multimillion dollar verdict against Diamond Wholesale and its owner, Raj Solomon, for infringing trademarks owned by Top Tobacco, Republic Technologies and Republic Tobacco, reports IPWatchdog.
In March 2022, a jury in the U.S. District Court of Georgia awarded Top Tobacco $11 million in damages against the wholesale company and its owner. Diamond Wholesale appealed the ruling, arguing that the district curt erred in excluding evidence, including witness testimony and invoices, that would have proven the retailer and its owner believed it was purchasing the counterfeit product from a legitimate seller, Star Importers, and that their infringement could therefore not have been intentional.
However, the Eleventh Circuit ruled that a “showing of intent or bad faith is unnecessary to establish a violation.”
Earlier this year, federal jurors in Atlanta awarded Republic Brands $2.3 million in statutory damages in a case about counterfeit tobacco rolling papers against Star Importers and ZCell & Novelties.
September 1, 2023
CoEHAR Concerned About South African Bill
The Center of Excellence for the acceleration of Harm Reduction (CoEHAR) has urged the South African government to use risk-proportionate regulation in its tobacco control efforts.
In a reply to a public consultation on the Tobacco and Electronic Nicotine Delivery Systems Control Bill, CoEHAR raised concerns that the current draft will restrict less risky options for people who would benefit from using these products to quit smoking.
“The primary goal of the South Africa tobacco policy should be to prevent and control tobacco- related excess mortality and morbidity. In practice, this means reducing smoking as deeply and rapidly as possible,” wrote Riccardo Polosa and Giovanni Li Volti on behalf of the CoEHAR in their letter.
“Tobacco harm reduction provides a fast-acting, market-based strategy for reducing smoking and eliminating most smoking-related risks. The regulation of combustion- smoke-tar-free products should always be considered as part of a regulatory system that covers all the nicotine delivery products. The aim should be to encourage the migration from high-risk to low-risk products and support positive behavior change. Regulators should take great care to avoid the perverse consequences of prohibitions and use risk-proportionate regulation instead.”
Based in Catania, Italy, CoEHAR is a multidisciplinary center focused on the study of tobacco harm reduction.
September 1, 2023
Russia Blames Illicit Trade for Tax Losses

Photo: Ivan Semenovych
The Russian government lost more than RUB46 billion ($481.33 million) in tax earnings in the first half of 2023 as a result of the illicit trade in cigarettes, reports Interfax.
“According to the latest study, which ended this month, the share of illicit cigarette trafficking was 13.3 percent in terms of smokers,” said Vladislav Zaslavsky, director of the Russian Industry and Trade Ministry’s department for the system of digital marking of goods and the legalization of the circulation of products.
“The minimum amount of losses, according to the NNCC [National Scientific Center for Combating Illicit Trafficking in Industrial Products], is estimated at RUB46.5 billion,” Zaslavsky said on Aug. 24 during a retail round table in the Volga region.
According to Zaslavsky, each percent of the share of illicit cigarette trafficking costs the federal budget about RUB7 billion in excise taxes alone.
The NNCC will conduct a study on “nicotine-containing products” in the second half of 2023. As of the end of 2022, the market share of illegal nicotine-containing products was 79 percent, including 93 percent in illegally sold nicotine-containing liquids.
August 29, 2023
Sampoerna Announces Executive Changes

Photo: Taco Tuinstra
Sampoerna has appointed Johan Bink as the operations director, succeeding Dina Lombardi, and Gunnar Beckers as marketing director, succeeding Francisca Rahardja.
Previously, Bink served as director of manufacturing at Papastratos, an affiliate of Philip Morris International in Athens, with over 33 years of experience in supply chain management and production planning.
Beckers previously served as PMI global head of consumer experience in Lausanne, Switzerland, with over 20 years of experience in marketing.
“Johan’s extensive experience in operations, from production floor to central functions, and his strong communication and leadership skills will continue to be great assets in his new role,” said Sampoerna President Director Vassilis Gkatzelis in a statement.
“Meanwhile, Gunnar is a well-rounded executive, who has consistently created value across diverse assignments at global, regional and market levels. His strategic perspective, wide international experience, strong collaborative spirit, focus on consumers, and ability to build brands will be great assets in his new role.”
Gkatzelis also expressed his gratitude to Lombardi and Rahardja for their contributions and leadership at Sampoerna. Both will assume new responsibilities within the PMI organization.
“Ibu Dina has always prioritized the safety and development of our people, thus role-modeling the Sampoerna and PMI values during the very challenging pandemic period. She guided Operations in reaching monumental milestones, including the establishment of the manufacturing facility for innovative smoke-free tobacco products,” said Gkatzelis.
“Meanwhile, Ibu Francisca has been leading the Marketing organization through very challenging times in a forward-looking way. In addition, she built solid foundations for the Consumer-Centric Organization. At the same time, she also contributed to the early journey of the innovative smoke-free tobacco products that Sampoerna introduced to adult consumers in Indonesia,” said Gkatzelis.
August 29, 2023
Volatile Environment Weakens STG Quarter

Niels Frederiksen | Photo: STG
Scandinavian Tobacco Group (STG) posted net sales of DKK2.2 billion ($320.09 million) in the second quarter of 2023, down 2.3 percent from the comparable 2022 quarter. Its EBITDA margin was 23.1 percent, and free cash flow before acquisitions amounted to DKK159 million.
The group reports that it lowered its full-year guidance to net sales between DKK8.7 billion and DKK9 billion following a more volatile than expected trading environment. According to STG, the adjustment reflects ongoing inventory adjustments among customers and distributors, slower regain of market shares in Europe, delays in new store openings in the U.S. and changes in exchange rates.
“On the back of a volatile environment, we had to adjust our guidance even though we are continuing to make good progress on our ambition to grow the size of the company through retail expansion, acquisitions and portfolio diversification,” said STG CEO Niels Frederiksen in a statement.
“In the second quarter, we completed the second acquisition of the year and opened another Cigars International retail superstore. For the remainder of the year, we are focusing on leveraging the current strength of our online business and on building a stronger momentum in our Europe branded business.”
The company expects some recovery in net sales growth for the second half of the year as well as slightly higher free cash flow before acquisitions than in the second half of 2022.
August 29, 2023
Governments Urged to Raise Smoking Age

Photo: Elena Shvoeva
Researchers are urging governments to raise the legal smoking age to 22 after a study found that those who start smoking before the age of 20 find it more difficult to quit.
The scientists analyzed the associations between nicotine dependency and successful smoking cessation according to the age participants started smoking. They presented their findings at the European Society of Cariology Congress, which took place Aug. 25–28 in Amsterdam.
The study included 1,382 smokers, of whom 30 percent were women. Early starters reported a higher number of cigarettes per day (25) compared with late starters, who smoked 22 cigarettes per day. Those who started early had higher respiratory carbon monoxide levels compared with those who started late (19 ppm versus 16.5 ppm, respectively) and higher scores on the Fagerstroem test for nicotine dependence (7.4 versus 6.3, respectively).
Less than half of early starters (46 percent) successfully quit smoking compared with 56 percent of late starters, for an odds ratio of 0.711 after adjusting for sex, age at clinic visit and smoking cessation aids—indicating that early starters were 30 percent less likely to successfully kick the habit compared with late starters.
“Our results show that starting smoking early is linked with higher nicotine dependency, even in young adulthood,” said study author Koji Hasegawa of the National Hospital Organization Kyoto Medical Center in Japan in a statement. “The study indicates that increasing the legal age to buy tobacco to 22 years or older could lead to a reduction in the number of people addicted to nicotine and at risk of adverse health consequences.”
August 29, 2023
Kaival Promotes Stephen Sheriff to COO

Photo: akub Jirsák | Dreamstime.com
Kaival Brands Innovations Group has promoted Stephen Sheriff to chief operating officer.
Sheriff succeeds Eric Mosser, who was recently promoted to CEO, and joins Mosser and recently appointed Chief Financial Officer Thomas Metzler as a part of Kaival Brands’ expanded senior management team.
“Promoting Stephen to the role of chief operating officer was a natural and logical next step given his contributions to the success of Kaival Brands to date and his experience helping businesses navigate through rapid periods of growth and change,” said Mosser in a statement. “He has a strong entrepreneurial spirit and will be instrumental in helping us take our business to the next level. With a deep understanding of our operations, the capital markets and what it takes to develop and execute a strategy with proven results, he is a great addition to our C-suite leadership team.”
Sheriff brings more than a decade of finance and entrepreneurial leadership to his new role. Most recently, he served as the director of administration and communications at Kaival Brands. In this role, he managed the company’s investor and public relations and human resource programs in addition to overall responsibility for the development and implementation of key programs and initiatives, including customer and vendor relations.
Prior to Kaival Brands, Sheriff co-founded Riverhill Group, a capital markets advisory and consulting firm.
August 29, 2023