Author: Taco Tuinstra

BAT Donates Cigarette Destruction Machine

Photo: Taco Tuinstra
BAT has donated a Hammermill cigarette destruction machine to the Uganda Revenue Authority (URA) to support the national fight against illicit cigarette trade, reports the PML Daily.
Receiving the machine at the URA head offices in Nakawa, acting Commissioner of Customs Okaka Godfrey said that the Hammermill will provide a more convenient and cost-efficient way to destroy illicit cigarettes compared with manual methods.
The acquisition of the machine follows a report by Kantar suggesting that nearly one-third of the cigarettes sold in Uganda are illicit. More than half of these illicit cigarettes are manufactured in Uganda for export, with the rest being manufactured in other countries before being smuggled into the country.
The government misses out on an estimated USH30 billion ($8.01 million) in tobacco tax revenues each year due to the illicit cigarette trade. BAT attributes a recent 41 percent drop in tax remittances to the URA to competition from the illicit market.
According to BAT Managing Director Mathu Kiunjuri, the illicit trade problem has become worse recently. This year, the share of the illicit market has increased to 27.5 percent from 23.8 percent in 2021 and 15.4 percent in 2020.
Between 2019 and 2022, URA enforcement teams seized more than 293,099 cartons of illicit cigarettes valued at $340,000. The major brand intercepted was Super Match made in Uganda for export, followed by high end brands such as Dunhill, Business Royal and Sportsman.
December 1, 2022
Brazil Anticipates Larger Crop in 2023

Photo: Ronaldo Almeida
Farmers in southern Brazil have planted enough tobacco to harvest 604.73 million kg in 2023—7.95 percent more than in 2022, reports Kohltrade, citing the country’s tobacco growers’ association, Afubra.
In Rio Grande do Sul, the production estimate points to 256.73 million kg of tobacco, cultivated in an area of 117,675 hectares with a productivity of 2,182 kg per ha. Compared with the past crop, tobacco growers in the Rio Grande do Sul increased their area by 3.17 percent and production should be 3.8 percent higher, Afubra estimates. Average productivity during the 2021–2022 harvest was 2,168 kg per ha.
In Santa Catarina, the projection is 191.55 million kg, produced in an area of 77,489 hectares with a productivity of 2,472 kg per ha. The planted area increased 10.22 percent from last year, and production is estimated to be 11.49 percent higher. Santa Catarina’s farmers average productivity was 2,444 kg per ha in the past season.
In Parana, production should reach 156.46 million kg in an area of 66,576 hectares with an estimated productivity of 2,350 kg per ha. The producers of Parana increased their area under tobacco by 6.99 percent. Afubra estimated increased production will be up by 10.93 percent. Productivity in the past season was 2,267 kg per ha.
Afubra President Benicio Albano Werner said the increase in the production area was expected. “The past crop was for a large part of tobacco growers very profitable,” he said. “This encouraged some producers to increase their planted area.”
December 1, 2022
Australia Plans Major Crackdown on Nicotine

Photo: Taco Tuinstra
Australia plans to tighten the screws on vaping and smoking, reports The Guardian.
While Australia was on the forefront of anti-tobacco policies for many years—the country pioneered plain packaging, for example—federal Health Minister Mark Butler says the former government has been “asleep at the wheel” as vaping skyrocketed.
Vaping rates doubled in Australia between 2016 and 2019. In New South Wales, almost a third of 16-year-olds to 24-year-olds had tried vaping by last year, up from 15 percent three years earlier, according to a state government population survey.
To help remedy the situation, the Therapeutic Goods Administration will begin public consultation on changes to importation laws, premarket assessments of vapor products, labeling, advertising, flavoring and identification of nicotine-containing products. Many nicotine-containing products are misleadingly labeled as nicotine-free, according to authorities.
It is illegal to sell, supply or possess an e-cigarette or any liquid that contains nicotine in Australia without a doctor’s prescription. But suppliers have been getting around this by removing “nicotine” from the ingredients list, even though their products contain it.
New South Wales Health revealed it had seized more than 157,000 vapes containing nicotine in raids in the 18 months leading to September.
The government also intends to further tighten the screws on combustible cigarettes. Among other measures, it wants to require cigarette manufacturers to print health warnings, such as “smoking kills,” on every individual cigarette and produce cigarettes in less appealing colors. Health promotion inserts should be put in every cigarette pack and advertising regulations will be updated to include vaping products. The government also wants to ban flavored cigarettes, including mentholated varieties.
The proposed measures are intended to help Australia achieve a smoking prevalence of less than 10 percent by 2025 and 5 percent or less by 2030.
The public consultation on reforms will be open until Jan. 16.
December 1, 2022
New Mexico Sues Over Tobacco Settlement

Photo: promesaartstudio
New Mexico is suing over a dozen tobacco companies over payments relating to the 1998 Master Settlement Agreement, alleging conspiracy and breach of contract, reports the Albuquerque Journal, citing Attorney General Hector Balderas.
Balderas claims that the companies have withheld portions of annual payments due under a multistate tobacco settlement. According to the attorney general, New Mexico has lost more than $84 million over the past 14 years.
“There is no end to these baseless delay tactics, and it is time to force the tobacco companies to pay New Mexico what they owe for damages—funding much-needed health initiatives,” said Balderas.
Companies are obligated to pay annually under the settlement, but each year, the companies file disputes that result in a percentage of the payment being withheld, which triggers an arbitration process that can take years, according to the attorney general’s office.
The amount withheld grows each year, according to officials, and the lawsuit states that the tobacco companies do not disclose how much is withheld or where the withheld funds are held, and withholding practices can change annually.
“This conspiracy is a calculated strategy to permanently and fraudulently decrease defendants’ contractual payments under the (settlement agreement) and to frustrate the purposes of the (settlement agreement),” the suit reads.
November 30, 2022
Supreme Court Asked to Stop California Ban

Photo: kuosumo
Tobacco companies have asked the U.S. Supreme Court to stop California from enforcing a ban on flavored tobacco products set to go into effect on Dec. 21, reports CBS News Bay Area.
On Nov. 8, Californians voted to uphold a state law ending the sale of most flavored tobacco products, including flavored e-cigarettes, menthol cigarettes and flavored cigars.
Originally passed by lawmakers in 2020, the measure was put on hold after opponents gathered enough signatures to force a referendum on the ban.
Following the Nov. 8 ballot, tobacco companies challenged the law in court, arguing that only the federal government can ban tobacco flavors, as the Family Smoking Prevention and Tobacco Control Act gives the U.S. Food and Drug Administration authority to regulate tobacco.
The Supreme Court filing states that the companies would suffer “irreparable harm” from being shut out of one of the country’s largest markets. Small retailers, they argued, would potentially have to lay off employees and close.
Previously the Ninth Circuit Court of Appeals denied the tobacco companies’ request to block the law pending appeal.
November 30, 2022
Greenbutts and Boegli Partner in Filters

Image: Greenbutts
Greenbutts and Boegli Gravures have jointly developed a new technology to manufacture biodegradable filters.
Trademarked as Greenbossing, the innovation enhances and tailors existing filtration capabilities along with the sensorial experience, according to the companies.
Greenbutts’ fully patented biodegradable filters deliver the sensorial experience of traditional cigarette filters without the plastic waste.
“For decades, our company has placed itself on the cutting edge of new technological solutions in the field of macro, micro and nano embossing solutions called ‘Vividus,’ ‘Midas’ and ‘Iris,’” said Boegli Gravures CEO and chairman Charles Boegli in a statement. “We are very proud to partner with Greenbutts to join our competences and address the huge ecological needs arising in the field of filter manufacturing, to which Greenbossing will be the answer.”
“Our organization has cultivated a strong partnership with the world-renowned embossing technology company Boegli and is pleased to announce the patent filing of our joint technology,” said Luis Sanches, chief strategy officer of Greenbutts. “This new IP will revolutionize the process of Greenbutts’ filter rod manufacturing. Greenbossing is a truly innovative feature, which will strengthen our position by introducing the next generation of biodegradable filters for the tobacco industry.”
“We are very proud to have Boegli Gravures as a solid and reliable partner,” said Greenbutts CEO Tadas Lisauskas. “The embossing technology that we jointly developed is nothing short of revolutionary, and we look forward to introducing even further technological advances in the coming months. As the cigarette industry is faced with transformative changes, driven by single-use plastic legislation and stronger commitments to their environmental agendas, we will ensure that Greenbutts continues to offer industry-leading innovations to maintain our leadership status in assisting with this transition.”
November 29, 2022
Vape Sector Boosts U.K. Economy: Report

Photo: VPZ
The vape industry has had a considerable positive impact on the U.K. economy, according to a new report compiled by the Centre for Economics and Business Research (CEBR) on behalf of the U.K. Vaping Industry Association (UKVIA).
Valued at £2.8 billion ($3.36 billion) in 2021, the U.K. vape sector supports almost 18,000 full-time-equivalent jobs in retail, manufacturing and supply chain. What’s more, smokers abandoning cigarettes in favor of less harmful e-cigarettes have saved the National Health Service (NHS) more than £300 million in 2019 alone, according to the report.
Even as many businesses suffered in recent years, vape retail stores have bucked the trend and represent one of the biggest growing sectors since the first decade of the 21st century when they started to appear for the first time.
From 2017 to 2021, the U.K. vape sector’s turnover grew by 23.4 percent to £1.33 billion last year alone. When indirect economic benefits such as supply chain support and the spending power of vape sector workers is factored in, the economic impact more than doubles.
In 2021, the vaping industry paid £310 million in taxes to the British exchequer.
CEBR estimates that the vaping sector saved the U.K. £322 million in smoking-related healthcare costs in 2019. The research organization reckons that if 50 percent of smokers switched to vaping, the potential healthcare savings would have been £698 million in 2020.
Meanwhile, the gain in economic productivity associated with smokers switching to using vaping products was estimated to be £1.3 billion in 2019. If 50 percent of remaining U.K. smokers switched to vaping, this would increase to £3.33 billion, according to the study.

“In little over a decade, vaping in the U.K. has grown from very much a ‘cottage industry’ to one of the fastest growing sectors in not just retail but the whole economy.”
John Dunne, director general, UKVIA
“The findings of the vaping industry’s first ever economic impact report demonstrates its significant success as a fast-growing disruptive sector,” says Owen Good, head of economic advisory at CEBR.
“Whilst many high street retailers have suffered in recent years, the vaping sector has bucked the trend, with significant growth both in-store and online. Even the effects of the pandemic have not significantly hampered the sector’s growth.
“The sector’s growth has been hugely beneficial to the U.K. economy; businesses and their employees directly involved in the industry and those running operations across the wider supply chain; and the NHS, which has seen a massive cost saving with increasing numbers of smokers switching to vaping in order to quit their habits.”
“In little over a decade, vaping in the U.K. has grown from very much a ‘cottage industry’ to one of the fastest growing sectors in not just retail but the whole economy,” said UKVIA Director General John Dunne in a statement.
“More people than ever are vaping, and by all measures, this is a true British success story, creating employment and wealth, generating precious revenue for the government through taxation while at the same time saving the NHS more than £300 million a year through people switching from smoking to vaping.”
November 29, 2022
Elfbar Warns of Fake Vapes

Photo: Elfbar
Potentially dangerous counterfeit disposable vaping products are flooding into the U.K. market, according to an investigation by Elfbar, a Chinese manufacturer. The company warns retailers and consumers that the illegal products are produced in “squalid Chinese factories with no license for manufacturing and regard for product safety.”
Since June 2021, Elfbar has cracked down on more than 120 counterfeit production and sales targets, including factories, warehouses, logistics and foreign trade companies. Its actions have resulted in the seizure of more than 2 million finished counterfeit Elfbar products, millions of packaging boxes, anti-counterfeit codes, semi-finished vaping pipes and other accessories, according to the company.
Elfbar CEO Victor Xiao said consumers would be horrified if they saw the conditions in which these products are made. “The criminals behind these counterfeit products care nothing about product safety or the health of consumers, and they cut every corner possible to maximize their profits,” he said in a statement. “Quite frankly, the conditions in these factories are absolutely squalid, where workers man production lines in filthy conditions with no regard to hygiene at all.”
Elfbar said that manufacturers and retailers have an important role in protecting consumers.
“While it can be hard to tell a fake product from the real thing just by looking at it, there is no excuse for any retailer to sell a counterfeit Elfbar product. Retailers can scan a code on the packaging to check the authenticity of the product, and we urge them to do this for every product they sell,” Xiao said.
John Dunne, director general of the U.K. Vaping Industry Association, applauded Elfbar for standing up against the counterfeiters.
“They pose a significant risk to the harm reduction reputation of the global vaping industry,” he said. “It’s why we have called for a retail licensing scheme here in the U.K. to prevent the sale of illicit products and much higher penalties of at least £10,000 [$12,058] per instance for retailers who break the law in this way,” he said. “Similarly, the counterfeiters and those who trade fake vapes along the supply chain need dealing with in a way by the relevant authorities that put them off from doing it ever again.”
November 29, 2022
Appointments at Japan Tobacco

Photo: Taco Tuinstra
Kei Nakano, currently the senior vice president, will take on the role of executive vice president and representative director, effective Jan. 1, 2023, and March 24, 2023, respectively. Nakano will succeed Naohiro Minami, who will assume a new position as member of the board without the right to represent the company as of Jan. 1, 2023, and will resign as member of the board upon the ratification at the 38th annual general meeting of shareholders, scheduled for March 24, 2023.
Suguru Fujiwara will assume the role of senior vice president of corporate affairs and communications for the tobacco business in Japan. Hisashi Shimobayashi will assume the role of senior vice president of information technology. Yuki Otaki will assume the role of senior vice president of D-LAB. These newly appointed officers’ positions are effective Jan. 1, 2023.
A full list of resigning board members and changes in responsibility can be found on JT’s website.
November 29, 2022
Stabilization Settlement Funds Available

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Current and former tobacco growers who wish to claim funds from the U.S. Tobacco Stabilization lawsuit settlement should complete a proof of claim form by Dec. 12, 2022.
The settlement stems from a lawsuit against the Flue-Cured Tobacco Cooperative over withheld funds, which are now being returned to qualifying grower members.
Tobacco growers who were a member of the cooperative at some point between 1946 and 2004 are eligible for payment considerations.
Growers claiming funds must supply their FC Number. Alternatively, they must provide sufficient identifying information, including all names and addresses used during the period that they marketed flue-cured tobacco.
A copy of the qualified settlement fund procedures, the proof of claim form and additional relevant information is available at https://omniagentsolutions.com/lewissettlementclasstrust.
November 28, 2022