Author: Taco Tuinstra

Counterfeit Tobacco Seized in France

Photo: Europol
French authorities seized more than 100 tons of illegal tobacco-related products worth €17 million ($18.43 million) during a raid on Jan. 12.
According to Europol, the confiscated materials included 19.4 million cigarettes and 15 tons of cut tobacco along with 50 tons of packaging materials, such as paper, filters and labels, as well as 18 tons of waste from the cigarette production process.
Officers also seized vehicles, factory machinery and electronic equipment. The seized tobacco and counterfeit products were destroyed.
During the raid, which involved more than 60 officers from the French National Gendarmerie, police arrested nine suspects, most of them Moldovan nationals. The gendarmes discovered a quasi-industrial setup for the production of counterfeit cigarettes in large quantities. They discovered three separate zones in the targeted factory.
One of the zones was dedicated to the processing of raw tobacco to produce boxes of cigarettes labeled as well-known brands sold on the legal market. Another zone was dedicated to the storage of large boxes of counterfeit cigarettes. The third zone was used as a living area for the workers with some 15 beds, a kitchen and a living room. This allowed the workers to live at the factory, completely cut off from the outside world.
Europol facilitated the information exchange and provided specialized analytical support. On the action day, Europol supported the French authorities by cross-checking operational information against Europol’s databases in real-time and providing leads to investigators in the field.
In 2020, Europol created the European Financial and Economic Crime Centre to increase synergies between economic and financial investigations and to strengthen its ability to support law enforcement authorities in effectively combating major criminal threats.
January 17, 2023
Reynolds Vapor Denied New Trial in Vuse Case

Photo: md3d
R.J. Reynolds Vapor Co. was denied a new trial in its Vuse Alto intellectual property dispute with Altria Group, according to Bloomberg Law.
In September, a jury in the U.S. District Court for the Middle District of North Carolina awarded Altria Client Services more than $95 million after finding that Reynolds Vapor Co.’s Vuse Alto e-vapor product infringed three Altria patents.
Following its loss, Reynolds Vapor Co. requested a new trial, stating that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial.”
Judge N. Carlton Tilley Jr. disagreed. “That the jury did not agree with” Reynolds “does not mean the trial was unfair,” he wrote in an opinion issued Jan. 12 in the U.S. District Court for the Middle District of North Carolina.
Tilley also denied Reynolds’ motion to reduce the damages jurors awarded to Altria Client Services in their Sept. 7 verdict.
“This was a fair trial,” Altria said in a statement. “There is no basis for another trial, and we are pleased that the jury correctly found that Reynolds Vapor has infringed a number of our patents.”
At issue in this case were three patents awarded to Altria Client Services by the U.S. Patent and Trademark Office based on filings dating back to April 2015. The jury found that Reynolds Vapor violated Altria’s patents covering the pod assembly used in Vuse Alto.
January 17, 2023
‘U.S. States Shafting Anti-Tobacco Programs’

Photo: Feodora
Only two U.S. states—Maine and Oregon—fund their tobacco prevention and cessation programs at or above the levels recommended by the Centers for Disease Control and Prevention (CDC), according to a new report released by the Campaign for Tobacco-Free Kids (CTFK), American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights and Truth Initiative.
In fiscal year 2023, American states will collect $26.7 billion from the 1998 Master Settlement Agreement and tobacco taxes. But they will spend just 2.7 percent—$733.1 million—on tobacco prevention and cessation programs, according to the report. This is a $14.5 million increase from last year but still less than a quarter (22.2 percent) of the total funding recommended by the CDC.
By comparison, the tobacco industry spends $9.1 billion annually to market its products in the U.S., according to the CTFK.
“To continue driving down tobacco use, address health disparities and stop tobacco companies from addicting another generation of kids, states must step up their funding of tobacco prevention and cessation programs,” said CTFK President Matthew L. Myers.
The report has appeared annually since the November 1998 landmark legal settlement between 46 states and the major tobacco companies, which, along with individual settlements with four other states, required the companies to pay more than $246 billion over time as compensation for tobacco-related healthcare costs.
January 17, 2023
Indonesia to Support Tobacco Farmers

Photo: Taco Tuinstra
Indonesia will allocate 50 percent of its tobacco excise revenue sharing fund to support tobacco industry workers and farmers, reports Antara News, citing a Presidential Staff Office (KSP) statement.
According to the KSP, the effort is necessary to help workers and farmers cope with the impact of global economic uncertainty on Indonesia’s tobacco industry. The assistance will reportedly be offered in the form of fertilizer, machinery and cash.
The Ministry of Finance requires 3 percent of the tobacco excise revenue to be allocated as a profit-sharing fund managed by the producing regional government.
Of the revenue-sharing funds, half must be used to improve the people’s welfare, while the remaining 40 percent will be used for health, and 10 percent for law enforcement.
In December, the government announced it would increase the tobacco product excise rate by 10 percent during 2023–2024. The policy aims to manage cigarette consumption, increase state revenue and monitor illegal cigarettes.
January 16, 2023
Sri Lanka Urged to Diversify Crops

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The government of Sri Lanka should incentivize tobacco farmers to abandon the golden leaf if favor of alternative crops, according to a new publication from the Institute of Policy Studies or Sri Lanka.
The study, reported The Sunday Observer, notes that tobacco farmers can earn better profits from cultivating other crops such as chili, brinjal, carrot, bitter gourd, cabbage and big onion.
In 2017, the government declared it would ban tobacco farming in Sri Lanka by the end of 2020. While its deadline has lapsed, leaf cultivation has declined significantly in recent years. In 2020, 1,142 hectares, or 0.04 percent of Sri Lanka’s agricultural land, was dedicated to tobacco, according to the most recent statistics. Production totaled 9,224 metric tons that year.
Among other recommendations, the study authors suggest building farmer resilience and strengthening the policy frameworks for alternative crops.
These supply-side measures, they argue, could be complemented with demand-side measures to disincentivize the manufacturers from engaging in tobacco production and prevent nontobacco farmers from joining the industry.
The also called for higher tobacco taxes and more awareness of the adverse health effects of tobacco consumption.
January 16, 2023
Taiwan Lawmakers Approve Vape Ban

Photo: sharafmaksumov
Lawmakers in Taiwan approved amendments to the Tobacco Hazards Prevention Act that would ban e-cigarettes, raise the legal buying age for combustibles and require heated-tobacco products to comply with strict regulations, reports Taiwan News.
People caught using unauthorized vapor products or tobacco-heating devices risk fines of between TWD2,000 ($66) and TWD10,000.
Manufacturers and sellers of such products would be required to submit health risk assessment reports backed by product samples. Unauthorized tobacco manufacturers, importers and advertisers are subject to fines ranging from TWD10 million to TWD50 million, according to the amendments.
Other changes involve raising the legal smoking age from 18 to 20, increasing the proportion of tobacco package warning messages from 35 percent to 50 percent and designating childcare centers and schools as no-smoking areas.
The amendments to the Tobacco Hazards Prevention Act were proposed in part due to concern about the growing popularity of vaping among youth.
The share of e-cigarette users in junior high schools grew from 1.9 percent in 2018 to 3.9 percent in 2021, according to a survey by the Health Promotion Administration, while the share in senior high and vocational schools rose from 3.4 percent to 8.8 percent during the same period. Some critics blame flavors for the increase.
The clauses on e-cigarettes and heated-tobacco products are to take effect one month after the amendments’ contents are announced to the public. The clauses on vapes with additional flavors as well as regulations on packaging are to take effect one year after the amendments are announced.
The last time the Tobacco Hazards Prevention Act was amended was in 2009.
January 13, 2023
Brazil: Highest Tobacco Earnings Since 2014

Photo: Taco Tuinstra
Brazil earned $2.2 billion from leaf tobacco exports in 2022—the most since 2014 when the country sold $2.3 billion worth of leaf in the international market, reports Kohltrade. The 2022 figures were up 72 percent in value and 30.7 percent in volume over 2021, although comparisons with that year were impacted by the Covid-19 pandemic and related logistical challenges.
Throughout 2022, Brazil shipped 412 million kg of leaf tobacco. When adding other non-leaf tobacco products, the export value reached $2.45 billion.
Brazilian tobacco companies exported 32.1 million kg of cigarettes and cigars worth $156.33 million and 136.9 million kg worth $59.25 of stems and product extracts throughout the year.
Europe was the main destination for Brazilian leaf tobacco in 2022. As a gateway to the continent, Belgium accounted for 28 percent ($610 million) of shipments. China placed second, buying 21 percent ($471 million) of Brazil’s tobacco, followed by the United States, which bought 6.5 percent ($143 million) of Brazil’s exported tobacco.
January 13, 2023
Buyer Loses License Over Side Marketing

Photo: Taco Tuinstra
Zimbabwe’s Tobacco Industry Marketing Board (TIMB) canceled Leanrise Tobacco’s buying license after finding the company guilty of side marketing, reports Zimeye.
According to the TIMB, Leanrise illegally leased its license to Munyasha Tobacco.
Leanrise denied the accusations and accused the regulator of misinterpreting the law. “We are not side marketing and there is nothing to substantiate any allegation of such nature,” the company said.
Leanrise argued it is entitled to have agents to advance its business. “Any tobacco purchased by the use of the Leanrise license is tobacco purchased for Leanrise,” the company noted. “In any event, the Leanrise license cannot be used to purchase tobacco from growers who are not contracted with Leanrise.”
The TIMB was unpersuaded by Leanrise’s defense, however. “After considering the contents therein, your justification for leasing your license to Munyasha Agro Pvt. Ltd. and all circumstances surrounding the matter, the Tobacco Industry and Marketing Board has decided to cancel your license in terms of the Tobacco Industry and Marketing (Prohibition of side marketing) Regulations, 2022 SI 77 of 2022,” the TIMB wrote.
January 13, 2023
FDA Accepts L!X Pouches’ PMTA

Image: TJP Labs
The U.S. Food and Drug Administration has accepted for review TJP Labs’ premarket tobacco product application for L!X nicotine pouches.
“TJP Labs created L!X nicotine pouches for adult (21+) users of nicotine-containing products who cannot or choose not to discontinue nicotine use, especially those who wish to transition to noncombustible, oral-use products,” said TJP Labs CEO David Richmond-Peck in a statement.
“The acceptance of our application by the FDA showcases our team’s dedication to providing adult users with alternatives that can potentially reduce the harm associated with traditional combustible tobacco products.
“Our facility’s Health Canada Drug Establishment License (DEL), Natural Health Products Site-License, ISO 9001:2015, HACCP and cGMP certifications speak to the rigorous quality standards at TJP Labs and will further bolster our ability to service high-volume international markets.”
TJP Labs is a full-service contract manufacturer of premier next-generation products, focusing on modern oral nicotine pouches and oral delivery solutions for caffeine and other nutraceutical products. The company is headquartered in Pickering, Ontario, Canada.
L!X nicotine pouches are marketed by TJP Labs’ subsidiary L!X Innovations.
January 13, 2023
Green Light for EU Flavor Ban Challenge

Photo: alexlmx
Ireland’s High Court has granted two tobacco companies permission to challenge the EU ban on flavored tobacco-heating products, reports The Irish Times.
The ban, which covers all flavors except tobacco, took effect Nov. 23, 2022. EU member states have until July 23, 2023, to transpose the rule into national legislation.
BAT subsidiaries PJ Carroll and Co. and Nicoventures Trading claim the EU directive is invalid. Their challenge targets the minister for health, Ireland and the attorney general.
PJ Carroll contends the EU ban undermines its “ability to capitalize fully on the unique opportunity of being the first company to launch heated-tobacco products on the Irish market for adult smokers who would otherwise continue to smoke.”
The company, which holds 10 percent of the Irish market for e-cigarettes, started commercializing heated-tobacco products in Ireland in 2021.
In an affidavit, PJ Carroll Director and Head of Trade Simon Carroll said the ban will also undermine BAT’s significant investment in the development of “products with reduced-risk profile (relative to cigarettes) to cater to the preferences of adult smokers in Ireland who would otherwise continue to smoke.”
In addition, the ban has significant implications for the implementation of public health policy and anti-smoking campaigns where there are acceptable alternatives to traditional cigarettes, he said.
PJ Carroll and Nicoventures have also challenged the directive at the EU General Court, which is part of the EU Court of Justice.
January 12, 2023