Author: Taco Tuinstra

  • Poll Reveals ‘Trust Gap’ In Vaping

    Poll Reveals ‘Trust Gap’ In Vaping

    Photo: Taco Tuinstra

    There is a major trust gap in vaping among smokers, with over half now believing they’re just as harmful as cigarettes or more harmful than cigarettes.

    The poll of 2,000 smokers revealed a growing distrust in switching to vapes. Nearly 38 percent who lack trust, say it could stop them from attempting to quit their smoking habits through vaping in the future.

    The government’s independent Kahn Review said vaping had a central role to play in a smokefree future across the country, with more than 6.5 million people still smoking in the U.K. And evidence last year by the Office for Health Improvement and Disparities (OHID) re-confirmed that vaping was at least 95 percent less harmful than smoking.

    But according to the Adult Smokers Trust in Vaping study conducted by One Poll and commissioned by SMOORE, pioneers in inhalation technology, 29 percent only trust vaping a little as a method to quit smoking, whilst 13 percent do not trust it at all.

    And of those whose trust is diminishing, 35 percent cite the lack of independent long term clinical research showing vaping to be less harmful than smoking. While 31 percent are concerned about the lack of any information available about the harm profile of different vape products.  Other factors that had caused a lack of trust included: negative reports and studies that smokers had come across, inconsistency of government attitudes across the world towards vaping, the growing black market for vapes, and the view of the World Health Organization on vaping.

    “There’s a major push to get smokers to move to vape products, but as of now, they just do not have all the information they need to make an informed decision to switch,” said Chenxing Pei, a senior aerosol engineer at the Smoore Centre for Analysis, Testing, and Safety Assessment, in a press release publish by the U.K. Vaping Industry Association.

    “It’s vital smokers are confident enough to switch, especially since health minister Neil O’Brien said the government must ‘exploit the huge potential of vaping to help adult smokers to quit.’

    “But reducing or quitting is incredibly difficult, it’s imperative to give them the belief that what they are attempting isn’t going to be a waste of time.

    “And if vaping is to be viewed as a credible way to quit, urgent efforts need to be made to ensure smokers trust these products to have the desired impact.”

    The research also revealed how trust among these smokers could be regained, with 30 percent claiming public health campaigns promoting the evidence-based facts could turn the tide. Better education of doctors to give more advice on how vaping can be an effective way to reduce harm caused by smoking, was cited as another key way to build trust.

    Meanwhile, 21 percent would welcome advertising regulations for vaping companies to be lifted—as long as they are promoting evidence from credible sources.

    But confusion persists among 68 percent of smokers when it comes to understanding which products would be suitable to help quit. And 70 percent now “don’t know who to believe” when it comes to vape products.

    Three quarters of smokers want information to be made available on the harm profile of the vape product at the point of purchase. With 87 percent of these saying it is important to know exactly what it is you are inhaling. Many are looking for clarification about the chemical constituents (60 percent), carbon residues (46 percent) and heavy metal content (44 percent) in their vapes.

    However, of those who smoke and vape, 74 percent initially started to reduce their reliance on cigarettes, with 58 percent of these claiming they were successful.

    The study coincides with Smoore establishing an independent think tank of scientific, smoking cessation and compliance experts from the U.K. and U.S. to lay the foundations for an industry-wide harm reduction rating system that can be communicated to consumers on product packaging or accessed via a QR code.

    “The concept of tobacco harm reduction is not widely understood by smokers, and there are widespread misperceptions regarding the relative safety of vaping products compared with cigarette smoking among the general public,” said Ian Fearon, one of the experts on the panel, who has previously worked for Juul Labs and BAT in senior scientific and clinical roles.

    “The development of a harm reduction label may help smokers to understand the reduced risk potential of vaping and encourage switching, in addition to reassuring vapers regarding the quality of the products they use and allowing them to differentiate between different products.

    “Government statistics last year showed that the proportion of smokers in the U.K. was at its lowest level since records begun, a decline which was attributed largely to the major role played by vapes.

    “However, the findings of this study, highlight a significant trust gap amongst adult smokers and it’s crucial for the vaping industry, government, regulators and healthcare professionals to come together to bridge it and support smokers on their quitting journey.

    “It’s clear that open and transparent communication is essential in this process and to supporting the government’s ambitions for the country to go smokefree.”

    Click here to view the report

  • Exports Boost KT&G Profit

    Exports Boost KT&G Profit

    Photo: KT&G

    KT&G reported a net profit of KRW274.23 billion ($206 million) for the first quarter of 2023, up 4 percent over the comparable 2022 period, reports Yonhap News Agency.

    The South Korean cigarette maker credited increased exports for its improved numbers.

    “Increased tobacco sales in emerging markets, such as Indonesia, Africa and Latin America helped the quarterly bottom line,” KT&G wrote in a statement.

    However, quarterly operating profit fell 4.9 percent year-on-year to KRW316.55 billion, due in part to higher leaf tobacco and other raw materials costs. Sales were down 0.5 percent to KRW1.4 trillion from KRW1.403 trillion during the cited period.

    In January, KT&G signed a 15-year supply contract with Philip Morris International, the allows the South Korean cigarette maker to distribute its Lil tobacco-heating products through the multinational’s extensive global sales network.

    KT&G aims to earn more than half of its sales from overseas businesses in 2027. It targets sales of KRW10 trillion won in 2027, compared with KRW5.9 trillion in 2022.

     KT&G has exported its tobacco-heating products to more than 30 countries since 2020 through the PMI’s distribution network.

    The South Korean company earns 90 percent of its overall sales from the cigarette business division and 10 percent from its tobacco-heating products division.

     KT&G has four tobacco manufacturing plants, one each in South Korea, Russia, Turkey and Indonesia, whose combined capacity amounts to 13.6 billion cigarettes a year.

  • Top Court Asked to Review Avail Case

    Top Court Asked to Review Avail Case

    Avail Vapor has asked the U.S. Supreme Court to examine a lower court’s refusal to review a marketing denial order issued by the Food and Drug Administration to Avail products.

    In its petition, known as a Writ of Certiorari, Avail asks the Supreme Court to consider the lower court’s legal reasoning and decision.

    Among other things, Avail argues in its petition that the FDA’s decisionmaking was arbitrary and capricious; that another court sided with a different petitioner against the FDA on the same basic arguments; and that the case is significant not only for Avail but for the entire industry and its customers.

    The Supreme Court has not yet decided whether it will hear Avail’s case.

  • BAT to Upgrade Bangladesh Factory

    BAT to Upgrade Bangladesh Factory

    Image: Piotr Pawinski

    British American Tobacco Bangladesh plans to invest BDT607 million ($5.65 million) in equipment and a centralized uninterrupted power supply device, reports The Daily Star.

    In Dhaka Stock Exchange filing, the multinational company said its board has approved the investment decision.

     The company will use the money to purchase winnower tobacco recovery equipment, a hinge-lid cigarette making and packing line, and a centralized uninterrupted power supply device.

    The investment would enhance the capacity and productivity of the company and would be funded from internal sources and bank financing, the filing said.

  • Zimbabwe Sales Surpass Half a Billion

    Zimbabwe Sales Surpass Half a Billion

    Photo: Taco Tuinstra

    Through the first 40 days of the 2023 marketing season, Zimbabwe tobacco leaf growers have sold 168 million kg of flue-cured tobacco leaf for $500 million, generating an average leaf price this season is $3 per kilogram, reports The Herald.

     At the same corresponding point of the 2023 marketing season, growers had sold 116 million kg of leaf for $348 million, generating an average leaf price of $2.99 per kilogram.

     Leaf sales on contract floors this marketing season totaled 153 million kg for $461 million while leaf traded on the auction floors totaled 14 million kg for $39 million.

     The highest sales price recorded this season was $6.20 per kilogram while the lowest was $0.10 per kilogram.

    This marketing season, leaf growers will retain 85 percent of their earnings in hard currency, up from last season’s mark of 75 percent. The remainder of the earnings will be in local currency pegged at the current interbank exchange rate.

    Total tobacco leaf sales for the entire season are expected to reach 230 million kg compared to 212 million kg sold last season.

    This season, tobacco growers planted on 112,293 hectares of land, down from 116,454 hectares last season.

    The Zimbabwean government aims to create a $5 billion tobacco industry by 2025 by boosting leaf production and moving up the value chain.

  • Finland and Estonia Investigate Smuggling

    Finland and Estonia Investigate Smuggling

    Image: Oleksii

    Finland and Estonia are investigating a criminal case involving the illegal import of millions of cigarettes into Finland from Estonia and Latvia, reports The Baltic Times.

    By failing to declare imports and pay taxes, Finland missed out on approximately €2 million ($2.18 million) in revenue, according to fiscal authorities.

    Finnish and Estonian law enforcement officers recently seized two freight consignments containing a total of almost half a million cigarettes. The seizures are part of a criminal case estimated to involve the illegal import of about 6 million cigarettes spread over more than 20 different occasions between March and December 2022.

     Some of the cigarettes were found to be counterfeit products.

     During the criminal investigation, five persons have been apprehended in Finland and Estonia.

    Sanctions on Russia and the sharp fall in traffic across Finland’s eastern border have shifted many illegal imports to postal and express freight transport, the Finnish customs authority reports.

  • Portugal to Further Restrict Public Smoking

    Portugal to Further Restrict Public Smoking

    Photo: sezerozger

    The government of Portugal plans to ban smoking near schools and hospitals, as well as in covered outdoor seating areas, reports Channels TV. The law would also prohibit smoking in all indoor spaces, including areas currently set aside for smokers in cafes. In addition, venues would not be allowed to sell tobacco products in the covered locations.

    The European Commission intends to decrease tobacco use in the 27-country bloc, which includes Portugal, to less than 5 percent of the population by 2040. 

    “With this law, we hope that young people can live in an environment without tobacco, reduce the incentive to smoke and allow smokers to overcome their addiction,” Health Minister Manuel Pizarro was quoted as saying on May 11.

    “Our objective is to have a generation living without tobacco by 2040… this law is in line with the EU’s anti-tobacco stance, but we wish to go further,” he added.

    In addition to the recently announced measures, the government wants to require manufacturers to print health warnings on new nicotine products, such as e-cigarettes.

    In 2019, 13,500 Portuguese dies from tobacco-related diseases, according to Lisbon.

  • Tobacco Industry Gathers in Bologna

    Tobacco Industry Gathers in Bologna

    The TABEXPO trade exhibition opened May 10 in Bologna, welcoming representatives of tobacco companies and their suppliers from around the world.

    According to Tony Crinion, managing director of Quartz Business Media, the first day of the show exceeded expectations in terms of both visitors numbers and visitor quality.

    Interest in the event, he said, was driven by the industry’s relentless focus on innovation, which has resulted in a compelling portfolio of products and services. Crinion also credited Bologna as a location for the event. The region is home to many tobacco-related businesses and continues to attract new tobacco investments, such as Philip Morris International’s state-of-the-art heated-tobacco factory and BAT’s innovation hub.

    Quarts Business Media’s global portfolio of industry events, including its shisha and vape exhibitions, have all been performing equally well, according to Crinion, who again credited the industry’s innovation for the widespread interest.

    In addition providing to a platform to showcase new products and services, TabExpo 2023 also featured a thought-provoking Congress during which experts shared their insights into the latest industry trends and developments.

  • Altria Settles Multiple Juul Cases

    Altria Settles Multiple Juul Cases

    Photo: Steheap

    Altria Group has reached agreement on terms to resolve at least 6,000 Juul-related state and federal cases for $235 million.

    “While we continue to believe the claims against us are meritless, we believe this settlement avoids the uncertainty and expense of a protracted legal process and is in the best interest of our shareholders,” said Murray Garnick, Altria’s executive vice president and general counsel, in a statement. “This settlement brings to a close the vast majority of our pending Juul-related litigation.”

    In October 2019, the U.S. Judicial Panel on Multidistrict Litigation ordered the coordination or consolidation of federal individual and class action lawsuits related to Juul in the U.S. District Court for the Northern District of California for pretrial purposes. These cases include approximately 50 economic class actions, approximately 4,500 personal injury actions and approximately 1,500 government entity actions, including approximately 1,400 school district cases. These cases are covered by the agreement as well as cases in a related state court consolidated proceeding involving 750 cases.

    This settlement does not apply to three cases brought by attorneys general, 35 cases brought by Native American tribes, 17 antitrust cases or three Canadian cases.

    The settlement remains subject to the parties entering into one or more final settlement agreements approved by the relevant courts.

    Altria expects to record a pre-tax charge of $235 million in the second quarter of 2023 and intend to treat such amount as a special item and exclude it from our adjusted diluted earnings per share.

  • Logic Challenges Marketing Denial Of Its Menthol Product

    Logic Challenges Marketing Denial Of Its Menthol Product

    E-cigarette maker Logic filed papers in court on May 9 that challenge the U.S. Food and Drug Administration’s marketing denial orders (MDO) that it issued against two brands: Logic Pro Menthol E-Liquid Package and Logic Power Menthol E-Liquid Package, reports Bloomberg Law.

     Logic called the FDA’s MDOs “arbitrary and capricious.”

    The 3rd Circuit Court entered a stay on the FDA’s MDOs in December 2022. The MDOs were the FDA’s first-ever MDOs directed at menthol e-cigarette products.