Author: Taco Tuinstra

  • Doctors Decry Tobacco’s Pharma Investments

    Doctors Decry Tobacco’s Pharma Investments

    Photo: Hero Images

    Pulmonologists are concerned about the tobacco industry’s investments in the pharmaceutical business, according to a Nieuwsuur report relayed by the NL Times.

    Confronted with declining sales in their traditional line of business, cigarette manufacturers have been exploring adjacent activities, including in the medical sector. For example, Philip Morris International in 2021 acquired the Vectura Group, a British manufacturer of inhaled treatments, and Fertin Pharma, a Danish developer and manufacturer of pharmaceutical and well-being products based on oral and intra-oral delivery systems.

    British American Tobacco and Japan Tobacco, too, have medical interests.

    Nieuwsuur journalists looked at 87 pharmaceutical products and medicines the tobacco industry is investing in. They found that half of the products are intended to treat diseases linked to smoking, including lung diseases, heart disease and diabetes.

    Frits Franssen, pulmonologist and professor of COPD at the University Medical Center in Maastricht in the Netherlands, worries about tobacco companies’ growing presence in the pharmaceutical business. He called their investments into medicines that treat smoke-related illnesses “uncomfortable,” pointing out that they’re earning twice from the smoker—once from the packet of cigarettes, then from treating the diseases caused by smoking.

    Tobacco companies insist that their diversification efforts fit with their strategy to reduce the health toll of tobacco use. By investing in noncombustible products, for example, they are offering smokers a less harmful way to consume nicotine.

     

  • Brazil Ag Minister Asked for Support Prior to COP

    Brazil Ag Minister Asked for Support Prior to COP

    Photo: Taco Tuinstra

    Tobacco supply chain representatives met with the Brazilian minister of agriculture, Carlos Favaro, on July 12, to ask his support ahead of the upcoming 10th Conference of the Parties (COP10) to the World Health Organization’s Framework Convention on Tobacco Control (FCTC).

    “Brazil is the top exporter of tobacco worldwide and has occupied this position for 30 years now and is the second largest producer,” said Iro Schunke, president of the Interstate Tobacco Industry Union (SindiTabaco), in a statement.

    “For this leadership role, Brazil should be a protagonist in defending a crop that contributes decisively to the socioeconomic progress of several cities, especially in the south region of the country. Historically, the Ministry of Agriculture has been an ally of the productive sector within this context because it has a good grasp of the impacts of the directives coming from the FCTC could have on the thousands of people who derive their livelihood from this crop, which is processed and exported. This is the stance we again expect from the ministry.”

    Brazil should be a protagonist in defending a crop that contributes decisively to the socioeconomic progress.

    Iro Schunke, president, SindiTabaco

    The meeting was also attended by Benicio Albano Werner, the president of the Tobacco Growers’ Association of Brazil (Afubra); Giuseppe Lobo, executive director of the Brazilian Tobacco Industry Association (Abifumo); Guido Hoff, executive director of the Association of the Tobacco Growing Municipalities (AmproTabaco); Carlos Joel da Silva, president of FETAG-RS; Romeu Schneider, president of the Tobacco Sectoral Chamber; and Helena Hermany, mayor of Santa Cruz do Sul. 

    COP10 is scheduled to take place in November in Panama.

  • Duty Free Retailers Sign Anti-Illicit Trade Doc

    Duty Free Retailers Sign Anti-Illicit Trade Doc

    Photo: Heorshe

    The Duty Free World Council (DFWC) and Tax Free World Association (TFWA), the representative organizations for the global duty- and tax-free industry, have welcomed the first cohort of duty- and tax-free retailers signing a new zero-tolerance declaration on illicit trade, counterfeiting and intellectual property theft. The declaration has been created as the next step of the Duty Free: Trusted, Transparent, Secure campaign, which was previously jointly launched by DFWC and TFWA in June 2022.

    Duty- and tax-free retailers, ARI, Dubai Duty Free, Dufry, Gebr. Heinemann, Lagardère Travel Retail, and Qatar Duty Free are the first to sign this initiative, with more retailers expected to join in the near future.

    The initial signatories of this initiative collectively account for approximately $25 billion of travel retail sales (2019) and rank amongst the largest and most successful duty- and tax-free retailers in the world.

    A significant number of major brand owners have also made clear their willingness to make the same commitment, and a separate announcement on brand owner support will be made in the near future.

    By signing this declaration, retailers commit to a zero-tolerance approach to illicit trade within their own organization. They are also requesting their suppliers follow suit with a clear anti illicit trade policy. This builds on the commitments already made by a number of duty- and tax-free retailers through the UN Global Compact.

    This commitment will be a key tool to demonstrate a united front and will further demonstrate that the duty- and tax-free industry is in no way associated with the growing problem of illicit goods fraudulently labelled as duty-free.

    Marking the launch of the declaration DFWC President, Sarah Branquinho, thanked the initial signatories for their strong support and encouraged others to follow their example.

    “There is no place in our industry for companies that engage in illicit trade,” she said in a statement. “Illicit trade in all its forms causes substantial societal harm, and costs our industry significant lost sales opportunities. It can also cause our industry reputational harm when illicit or counterfeit goods are fraudulently mislabeled as ‘duty-free’ in an attempt to lend authenticity to the product. Ultimately, consumers should be aware that when they purchase goods labelled as duty-free outside of a licensed duty-free retailer, it is very likely to be a counterfeit product.

    “Our industry already boasts one of the most transparent, trusted and secure supply chains in the world. We are proud of our industry’s credentials and commit to maintaining these high standards.

    “Today, some of the major players in our industry are making clear their ongoing stance against illicit trade and will be encouraging their suppliers to follow suit. There can be no room for doubt—the duty- and tax-free industry has zero tolerance for illicit trade in all its forms. We want to send a clear message worldwide – when you shop in a duty-free shop, you can do so with complete confidence!

    “Our announcement today builds upon the decades of trust that we have built up with our customers, governments, customs authorities, and industry partners. DFWC, TFWA and the initial signatories are keen to grow the momentum behind this initiative and are confident the industry will be fully behind it.”

  • Growers Welcome New Buyer on Market

    Growers Welcome New Buyer on Market

    Tobacco growers in Malawi have welcomed the debut of a new tobacco purchaser, Nyasa Tobacco Buying Co. (NTBC).

    According to a report in the Nyasa Times, NTBC paid $3.06 per kg for burley tobacco at the Lilongwe Auction Floors on July 10.

    Tobacco is Malawi’s largest agricultural export, earning the country much-needed foreign currency. Growers, however, have not always been satisfied with the prices offered for their leaf.

    Tobacco Commission President Joseph Malunga recently assured the country that his organization would bring in more buyers to promote competition.

    Tobacco Reporter recently published a special report about efforts to diversify Malawi’s economy and develop supplemental value chains to reduce the country’s reliance on the golden leaf.  

  • Korean Ministry Urges Vape Show Canceled

    Korean Ministry Urges Vape Show Canceled

    Photo: Taco Tuinstra

    South Korea’s Ministry of Health and Welfare (MOHW) has urged events organizer The Fairs to cancel its Korea Vape Show 2023, reports Korea Biomedical Review.

    The exhibition is scheduled to take place July 21-23 in Goyang, Gyeonggi Province.

    “We sent a letter asking for the event to be canceled because we had concerns from a health promotion perspective,” a MOHW official was quoted by Yonhap News as saying. “We are also concerned that adolescents may visit the show if access to the convention is not properly controlled.”

    The ministry also expressed worries about advertised vaping contests that it said would violate indoor smoking restrictions. South Korea allows indoor smoking only in separate, fully enclosed areas.

    The MOHW said it plans to inspect the venue on the day of the event and impose penalties if the organizers fail to create a fully enclosed smoking room inside the venue.

    The organizers said they had submitted plans to resolve the issues raised by critics and said it would not cancel the convention.

    The official also stressed that previous conventions had been held without problems. “During the past three conventions, officials from the local public health center visited the convention and found no wrongdoings,” she said. 

  • Broughton Adds Extractables and Leachables

    Broughton Adds Extractables and Leachables

    Photo courtesy of Broughton

    Broughton has launched a new extractables and leachables (E&L) testing service for the reduced-risk nicotine industry. The new service will offer tailored E&L studies for products aimed at the premarket tobacco product application (PMTA) and the marketing authorization application (MAA) pathways. 

    According to Broughton, regulatory bodies increasingly focus on the interactions between manufacturing components, nicotine delivery devices and container-closure systems, and the final product formulation. Producers must identify and assess any toxicological risks that could arise via such interactions via E&L studies.

    Aimed at supporting reduced-risk nicotine product categories such as electronic nicotine delivery systems, Modern Oral nicotine pouches and nicotine replacement therapy, the service is available across all stages of the product development lifecycle.

    The new testing service includes study design, extractables studies, extractables toxicology assessments, leachables method development and validation, leachables shelf-life studies and leachable toxicology evaluation.

    “Extractable and leachable studies are essential to the PMTA and MAA regulatory pathways for reduced-risk nicotine products to ensure their safety and demonstrate evidence of mitigating risk. Even in emerging categories, where regulations may not exist, such as nicotine pouches, they should be adopted as a best practice approach to product understanding and stewardship,” said Chris Allen, CEO of Broughton.

    “Our scientific experts and toxicologists have years of combined experience conducting E&L studies across a range of reduced-risk nicotine product and device categories. By offering a one-stop solution for E&L studies, we can ensure a fully integrated approach across study design, extractables study delivery, leachables method development and toxicology assessment with our specialized consultants available to troubleshoot, problem-solve and develop analytical solutions to issues that may arise.”

  • Expand Flavor Ban to Reduce Youth Vaping

    Expand Flavor Ban to Reduce Youth Vaping

    Photo: Atlas

    Youth vaping would decline significantly if the U.S. Food and Drug Administration expanded its flavor ban to disposable e-cigarettes, according to a new study from the Center for Tobacco Research at The Ohio State University Comprehensive Cancer Center. The FDA’s current flavor ban only applies to cartridge electronic cigarette devices.

    Researchers surveyed 1,414 individuals between the ages of 14 and 17 regarding their e-cigarette use and behaviors. This included demographic and self-reported information about the type of device used, usage habits, preferred flavors and intent to discontinue use of the vaping device in response to proposed hypothetical comprehensive flavor ban.

    Overall, nearly 39 percent of survey respondents reported they would stop using their e-cigarettes if tobacco and menthol-flavored e-liquids were the only options available, and nearly 71 percent would quit vaping under a tobacco-only product standard.

    “Our data add to an expanding body of evidence showing that youth have a preference for sweet flavorings that make vaping easier for novice users of e-cigarette products, priming them for a potential lifetime of dependency to nicotine,” said senior author Alayna Tackett in a statement.

    In February 2020, the FDA restricted the use of flavorings in cartridge/pod vape devices, but the ban did not extend to disposable devices or to menthol flavoring for all devices. While sales of e-cigarette cartridge products went down, sales of disposable devices and menthol-flavored pod/cartridge devices went up.  

    In April 2022, the FDA issued proposed product standards banning menthol flavoring in cigarettes and cigars.

    While stressing the importance of preventing vaping among young people, Tackett says that flavor restrictions could also impact adults who use e-cigarettes as a tool to quite smoking.

    “Many adults prefer using non-tobacco flavors to switch from combustible cigarettes to e-cigarettes,” said Tackett. “Flavor restriction policies should consider the best ways to protect public health while supporting adults who are interested in choosing potentially less harmful alternatives to combustible cigarettes.”

  • BAT Uganda Impacted by Illicit Trade

    BAT Uganda Impacted by Illicit Trade

    Photo: Taco Tuinstra

    BAT Uganda’s 2022 performance was impacted by the country’s slow economic recovery and growing illicit trade, according to a report in The Independent.

    Gross revenue increased by 6 percent to UGX99.5 billion ($27 million) driven by higher sales volumes. However, general inflation rates drove up the cost of production by 15 percent, causing after-tax profits to drop 6 percent.

    “Whilst the fundamentals of our business remain solid as evidenced by our sustained investment in the country for 95 years, the increasing incidence of illicit trade in Uganda remains a major threat to the sustainability of our business going forward,” said BAT Uganda Managing Director Mathu Kiunjuri during the company’s annual general meeting on July 6.

    The incidence of illicit cigarettes rose from 23.8 percent in December 2021 to 29.4 percent in December 2022, according to industry research.

    According to Kiunjuri, the government loses up to UGX30 billion annually to the illicit cigarette trade. Third-party research indicates that most illicit cigarettes are mislabeled as exports or smuggled in from neighboring countries.

    Uganda is reportedly also increasingly becoming a source of illicit cigarettes in regional markets such as Kenya.

    A recent market study revealed that several BAT Uganda and BAT Kenya brands intended for sale in other countries end up in shops in Uganda.

    Despite the challenges, Kiunjuri praised the Uganda Revenue Authority  (URA), which he said has made significant progress in fighting the illicit cigarette trade. “However, for meaningful and lasting impact, it is critical that government redoubles its efforts, including ramping up multi-stakeholder and cross-border collaboration to ensure effective enforcement and enhancement of anti-illicit trade regulations,” he said.

    According to the URA, cigarette smuggling accounts for up to 27 percent of smuggled goods in Uganda, with the Supermatch brand accounting for more than 90 percent of the seized cigarettes.

  • Zimbabwe to Achieve Target Early

    Zimbabwe to Achieve Target Early

    Workers at Atlas Agri receive bales of leaf at the company’s warehouse in Harare. Zimbabwe is anticipating record volumes this season. (Video: Taco Tuinstra)

    Zimbabwe is poised to reach its 300 million kg tobacco crop target ahead of schedule with 284 million kg already delivered and sold this season, reports The Herald.

    Last season the final count was 212 million kg. If the proportions of the final crop delivered by this time are the same as last year, Zimbabwe should reach its 300 million kg 2025 target within a few weeks.

    “Over 284 million kgs of tobacco have been sold this season, surpassing the set targets, meaning we had a good and very productive season,” said Chelesani Tsarwe, public relations officer at the Tobacco Industry and Marketing Board, which regulates the trade.

    In an attempt to extract more value from the country’s tobacco business, the government of Zimbabwe has formulated the Tobacco Value Chain Transformation Plan. The blueprint aims to create a $5 billion tobacco industry by 2025 through a combination of value addition and increased leaf production.

    The 284 million kg compares with 190 million kg sold in the same period last year and represents a new record.

    The Herald, which tends to tow the government line, attributes the country’s productivity to its controversial land reform program in the early 2000s, which involved the confiscation of primarily white-owned commercial farms and redistribution of land to smallholders.

    Prior to land reform, Zimbabwean tobacco was produced by about 1,500 commercial farmers who sold their tobacco at auction. Today, tobacco is produced by tens of thousands of small-scale farmers, most of whom contract directly with leaf merchants because they lack the means to finance their own operations.

    Zimbabwe produces 6 percent of the world’s tobacco. The country reportedly has enough tobacco seed to cater for the next eight years.

  • Tabaterra to Produce JTI Brands for Georgia

    Tabaterra to Produce JTI Brands for Georgia

    Photo: Tabaterra

    Tabaterra will produce certain Japan Tobacco International brands in Azerbaijan and sell them in Georgia under a recently signed deal between the companies.

    “We are very pleased to have partnership with JTI on the production and export of global brands,” said Tabaterra Director Elman Javanshir in a statement. “The export agreement we signed is a clear example of production of high-quality products at Tabaterra in accordance with international standards.

    According to Javanshir, the export agreement will make a significant contribution to the economy of Azerbaijan, generating annual foreign currency inflows of around $13 million.

    “The export agreement we signed with Tabaterra CJSC is of great importance for JTI in terms of strengthening our position in the Georgian market,” said Sergey Buksa, general manager of JTI for Belarus and the Caucasus region.

    “Based on the experience and production capabilities of our business partner, Tabaterra, we can now manufacture our global brands such as Sobranie, Winston and Camel in Azerbaijan in a shorter period of time and ensure its accessibility for Georgian consumers. The export agreement we have signed will contribute to the increase of trade turnover between Azerbaijan and Georgia.”

    Tabaterra was registered in November, 2017. In addition to its own products, the company produces international tobacco brands under license.