Author: Taco Tuinstra

  • Imperial Reports Trading In Line with Expectations

    Imperial Reports Trading In Line with Expectations

    Photo: Igor Golovnyev

    Imperial Brands reported trading in line with expectations for fiscal 2024.

    “We are pleased to report another year of operational and financial delivery against our five-year strategy to transform the business,” the company wrote on its website ahead of the Nov. 19 announcement of its annual results.

    “At constant currency, we are on track to deliver in line with our full-year guidance with an acceleration in tobacco and NGP [next-generation products] net revenue growth versus last year and group adjusted operating profit growth close to the middle of our mid-single digit range.

    “Constant currency tobacco and NGP net revenue growth has strengthened over the same period last year underpinned by strong combustibles pricing and further growth in our NGP business. Our investment activities in our five priority markets continue to deliver stable aggregate market share with gains in the U.S., Spain and Australia, broadly offsetting declines in Germany and the U.K.

    These results are consistent with our medium-term objective to hold or grow aggregate share across these markets. At the same time, we have delivered strong pricing, while industry volume pressures have eased across the majority of our wider market footprint.”

    Imperial Brands expects NGP net revenue to grow in the range of 20-30 percent at constant currency, with increases across all three regions as we build scale in our existing footprint. “Our results this year have benefited from the launch of innovative products with new formats under the Blu brand, new iSenzia non-tobacco heat sticks and new flavors in the modern oral segment,” the company wrote. “Our entry in the U.S. oral nicotine category with the launch of the Zone range of pouches has been well received and supported a stronger NGP performance in our U.S. business.”

    Imperial Brands’ constant currency group adjusted operating profit growth improved in the second half of the year driven by strong results across all three regions, including the group’s Africa, Asia, Australasia and Central & Eastern Europe region where shipment timings in the Middle East affecting the first half have now been resolved.

    “Our profit performance also reflects reduced NGP operating losses as we build scale while continuing to invest in line with our plans,” Imperial wrote. “Group adjusted operating profit has benefited from growth at Logista, the Spanish-based distribution business in which we have a 50.01 percent stake.”

    Along with its trading update, Imperial Brands announced a further £1.25 billion ($1.64 billion) share buyback, which it expects to complete before Oct. 29, 2025. This represents approximately 7 percent of the current share capital and is a 13.6 percent increase on the 2024 share buyback of £1.1 billion. The company says it  is on track to deliver total share buyback returns of £3.35 billion since we started the buyback program in 2022.

  • Imperial Sued Over Zone Trademark

    Imperial Sued Over Zone Trademark

    Photo: Olivier Le Moal

    2ONE Labs and Performance Plus Marketing have filed both a trademark infringement lawsuit and a preliminary injunction against Imperial Brand subsidiaries Zone nicotine pouch trademark.

    The suit alleges that Imperial’s Zone products willfully infringe the 2ONE nicotine pouch brand. In addition to seeking an award for damages, 2ONE is also seeking cancellation of Imperial’s Zone mark.

    According to the plaintiffs, the 2ONE brand has been continuously marketed and sold to adult consumers through thousands of U.S. convenience chain and independent grocery and smoke shop stores for the last five years.

    The suit alleges Imperial Brands made false statements by claiming a significantly earlier use of their mark in commerce than had occurred. The suit further alleges the false statements allowed Zone to be granted a fraudulent mark.

    “We have experienced numerous instances of consumer confusion since Imperial launched its Zone brand in 2024 and we intend to vigorously fight this type of blatant infringement, no matter how big the corporate bully,” said 2ONE Labs founder and partner Vincent Schuman in a statement.

    The case is before the U.S. District Court for the Central District of California.

  • KT&G Steps up Investment in Indonesia

    KT&G Steps up Investment in Indonesia

    Photo: KT&G

    KT&G will invest KRW600 billion ($454 million) and hire about 1,000 people in Indonesia. The company’s local operations will serve not only Indonesia but also the Middle East and other markets in the Asia-Pacific region.

    “KT&G chose Indonesia as the company’s center of production for the Asia-Pacific market,” KT&G Indonesia’s president director, Jeong Yun-sig, told JoongAng Daily. Indonesia is KT&G’s biggest market outside Korea, accounting for 22.6 percent of the tobacco company’s total exports as of 2023.

    KT&G entered Indonesia in 2011, when it bought a local tobacco company. As of 2023, the company had sold 9.55 billion cigarettes in the country, propelling it to the No. 4 spot among tobacco manufacturers in Indonesia, ahead of multinationals such as British American Tobacco and Japan Tobacco International.

     In April, KT&G broke ground for two additional Indonesian factories. Upon completion, company will have a production capacity in Indonesia of 35 billion cigarettes annually.

     “We have consistently invested in the Indonesian market, building a local R&D center and hiring experts for localization efforts,” Jeong Yun-sig said. “The localized version of Esse and new brands for the Indonesian market worked well for the company.”

  • Ispire and ANDS Sign Distributor Deal

    Ispire and ANDS Sign Distributor Deal

    Photo: Mongkolchon

    Ispire Technology and Dubai-based ANDS have signed a five-year agreement under which the partners will commercialize Ispire’s Hidden Hills Club nicotine portfolio to the Middle East, North Africa (MENA) region and global duty-free markets.

    “This collaboration is a pivotal moment for Ispire as we continue to expand our global footprint at a time when consumers are looking for harm-reduced products to transition away from combustible cigarettes,” said Ispire Technology Co-CEO Michael Wang in a statement.  

    “By partnering with ANDS, we gain access to one of the fastest-growing regions in the world, where smoking rates remain high, but there is a significant demand for harm-reduced products. With ANDS’ robust regulatory, legal, compliance, brand building, sales and distribution expertise as well as local market insights, we are well-positioned to bring the Hidden Hills Club nicotine portfolio to new markets, offering consumers innovative, harm-reduction alternatives to combustible cigarettes.”

    “We are thrilled to collaborate with Ispire to bring the Hidden Hills Club nicotine products and their marketing power to the MENA region and global duty-free markets,” said ANDS co-founder and CEO Fadi Maayta.

    “With Ispire’s cutting-edge products and our extensive reach and expertise, we are confident that this partnership will provide consumers with innovative nicotine delivery solutions that will bring potentially reduced risk products to adult smokers. Together, we aim to meet the evolving needs of consumers in the region while ensuring compliance with local laws and regulations.”

  • ‘Never Smoker’ Ill-Defined in Study: UKVIA

    ‘Never Smoker’ Ill-Defined in Study: UKVIA

    Photo: Tobacco Reporter archive

    A recent study suggesting there are more vapers without a history of smoking in England improperly defines “never smokers,” according to the U.K. Vaping Industry Association (UKVIA).

    “This new research talks about ‘never-regular-smokers’ vaping, their definition for this being people who have not smoked for more than a year,” said UKVIA Director General John Dunne in a statement.

    “This definition is problematic as it does not exclusively include what most people would define as nonsmokers. As the study authors also point out, it is impossible to say if their cohort, whether experimenting with cigarettes already or not, would not have become smokers were it not for vapes.

    “The authors themselves also note that some people have genes and circumstances leading them to like nicotine products; traditionally, they ended up smoking, but some are now discovering vaping without becoming smokers first. If vaping did not exist, they would be smoking.

    “Vaping should only be for smokers looking to quit, but we also need to ensure that those smokers continue to have access to what they need in order to quit.”    

  • Vietnam Continues to Reject ENDS

    Vietnam Continues to Reject ENDS

    Image generated with Adobe Firefly

    Vietnam’s Ministry of Health rejected claims that next-generation nicotine products are less harmful than traditional cigarettes during a seminar held on Oct. 3, reports VietnamNet.

    Nguyen Trong Khoa, deputy director of the ministry’s Department of Medical Examination and Treatment, insisted that there is no scientific evidence suggesting that e-cigarettes or heated tobacco products reduce harm or aid in quitting smoking.

    Khoa emphasized that e-cigarettes and heated tobacco products contain high levels of addictive nicotine and contain hazardous chemicals that can cause cancer.

    He dismissed Public Health England’s finding that e-cigarettes are 95 less harmful than traditional cigarettes as a “tobacco-funded study that lacks scientific credibility.”

    The smoking rate among adolescents aged 13-17 in Vietnam decreased from 5.36 percent in 2013 to 2.78 percent in 2019. For those aged 13-15, the rate of cigarette use dropped from 2.5 percent in 2014 to 1.9 percent in 2022.

    However, the use of new-generation tobacco products has surged recently. A survey found that vaping among students aged 13-15 rose from 3.5 percent in 2022 to 8 percent in 2023.

  • TIMB Deploys Biometrics to Curb Side Marketing

    TIMB Deploys Biometrics to Curb Side Marketing

    Photo: Taco Tuinstra

    Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) is pioneering a new biometric management system to curb side marketing, a practice in which farmers sell their crops to noncontracting merchants and deprive the investor of his tobacco.

    The regulatory body is collecting fingerprints from each tobacco farmer and linking them to their unique grower number. The biometric data is complemented by GPS coordinates of the growers’ farms. When farmers collect inputs, contractors can verify a growers’ authenticity using a scanner.

    The system makes it impossible for farmers to contract with multiple tobacco merchants. It also captures the indebtedness of farmers, minimizing the potential for contractors to manipulate the growers’ financial obligations.

    “The system will help eliminate corrupt elements by verifying their identities and improving the stop order system to prevent the misuse of growers’ numbers,” TIMB acting CEO Emmanuel Matsvaire told The Sunday Mail.

    The old system, which relied solely on registration, allowed nonfarmers to participate in the market, fueling side marketing and leading to high rates of default.

    Side marketing remains a significant problem in the Zimbabwean tobacco industry, responsible for millions of dollars in lost revenue.

    In 2023, TIMB blocked nearly 550 grower numbers on suspicion of their use in side marketing. In 2021, five exporters alone lost $57 million due to the practice.

    Meanwhile, preparations for the upcoming cropping season are progressing as the country seeks to achieve a tobacco yield of 300 million kg, according to Matsvaire.

    Despite the El Nino drought that destroyed various crops last year, tobacco performed relatively well, declining by 20 percent to approximately 231 million kg from a record 297 million kg during the previous season.

    This season’s target aligns with the government’s Tobacco Value Chain Transformation Plan, which also aims to enhance beneficiation and raise local funding.

  • Kenya to Update Tobacco Law

    Kenya to Update Tobacco Law

    Photo: tatabrada

    Kenyan lawmakers want to update the 2007 Tobacco Control Act to account for new nicotine products, reports Nation.

    Established to control the manufacture, production, labeling, sale, sponsorship and promotion of tobacco products, the 2007 legislation did not anticipate nicotine products such as e-cigarettes and pouches. Its most recent amendment dates from 2009.

    The currently proposed amendment, tabled by Senator Catherine Mumma, will extend the Tobacco Control Act’s provisions to electronic nicotine-delivery systems, their refill containers and nicotine pouches. It also seeks to control the advertisement of electronic nicotine-delivery systems and modern oral products. In addition, the amendment will require manufacturers to secure approval from the Cabinet Secretary for Health for the manufacture, importation, distribution, storage or sale of nicotine products.

    “The principal objective of [the bill] is to amend the Tobacco Control Act to provide for the regulation of electronic nicotine-delivery systems that include electronic cigarettes and related products, regulate the sale of tobacco and tobacco products for persons under the age of 18 years, regulate advertisement and ensure prior authorization of tobacco and tobacco products by the Cabinet Secretary,” said Mumma.

    The number of Kenyans who smoke has been increasing over the years and is projected to hit 3.61 million by 2029. According to Consumer Insights, Statista, there were about 3.1 million tobacco users in Kenya at the end of 2022.

    Statista notes that the number has been rising in the past 15 years and is estimated to increase by another 5.8 percent over the next five years.

    Stakeholders have been urging the government to increase tobacco taxes to curb the rising cigarette consumption, especially among young people.

    “We want cigarettes and tobacco products to be expensive so that they are out of reach of children,” said Celine Awuor, CEO of the International Institute for Legislative Affairs, during the third annual Conference of Tobacco Taxation hosted by the National Taxpayers Association, which was reported by Africa Science News.

    “We are having products that are cheap and relatively affordable, meaning that young people are able to access and pick up these habits early and then get hooked into addiction.”

    Currently, taxes in Kenya constitute 32 percent of the retail price, well below the World Health Organization’s recommendation of between 70 percent and 75 percent. And whereas the WHO advocates uniform taxation for all tobacco products, the Kenyan cigarette tax system distinguishes between filtered and unfiltered cigarettes.

    Meanwhile, Tobacco Control Board chair Naom Shaban highlighted the challenges presented by illicit tobacco products, which have been gaining market share. “These products are dangerous because we don’t know their contents and they bypass health regulations,” Shaban was quoted as saying.

  • ‘Ireland’s Vape Tax Puts Smokers’ Lives at Risk’

    ‘Ireland’s Vape Tax Puts Smokers’ Lives at Risk’

    Photo: Taco Tuinstra

    Ireland’s new tax on e-cigarettes is a setback in the fight against tobacco, condemning thousands of smokers to unnecessary premature death, according to international health experts.

    This week, the Irish government announced a levy of €0.50 per ml of e-liquid as part of its annual budget, adding €1.23 to the cost of a typical vape. This tax is far above the European average of €0.10 to €0.30.

    “Sweden is on the brink of achieving smoke-free status as a result of its progressive approach to safer alternatives like vaping. This contrasts sharply with Ireland’s approach, where smoking rates remain four times higher,” said Delon Human, leader of Smoke Free Sweden, in a statement.

    “Sweden’s successful policies, including lower taxes on safer nicotine alternatives, have helped reduce smoking and smoking-related deaths. In stark contrast, Ireland’s new levy will discourage smokers from switching to less harmful options, potentially keeping them addicted to cigarettes and condemning them to unnecessary premature death.”

    According to a recent Irish public consultation, only 10 percent of respondents supported increasing taxes on vaping above the EU average, while 39 percent warned that higher prices would push consumers to source products abroad.

    Through the promotion of safer alternatives like snus, nicotine pouches and vapes, Sweden has reduced its smoking rates by 55 percent over the past decade, resulting in a staggering 44 percent fewer tobacco-related deaths compared to the rest of the European Union.

    “By raising taxes on safer alternatives, Ireland jeopardizes its hopes of reducing smoking rates,” Humans said. “If Ireland truly wants to cut smoking and save lives, it should follow Sweden’s lead in promoting harm reduction, not penalize smokers for trying to quit.”

  • Generation Ban Could Save Million-Plus Lives: Study

    Generation Ban Could Save Million-Plus Lives: Study

    Photo: shock

    Creating a generation of people who never smoke could prevent 1.2 million deaths from lung cancer globally, according to a study led by researchers from the University of Santiago de Compostela, the International Agency for Research on Cancer (IARC), and global collaborators published in The Lancet Public Health journal.

    The simulation study—the first of its kind—suggests that banning the purchase of cigarettes and other tobacco products among people born between 2006 and 2010 could prevent 1.2 million lung cancer deaths in 185 countries by 2095.

    The findings indicate that creating a so-called tobacco-free generation could reduce the impact of smoking on lung cancer deaths in future generations.

    “Lung cancer is a major killer worldwide, and a staggering two-thirds of deaths are linked to one preventable risk factor—tobacco smoking,” said author Julia Rey Brandariz, University of Santiago de Compostela, in a statement.  

    “Our modeling highlights how much there is to gain for governments considering the implementation of ambitious plans toward creating a tobacco-free generation. Not only could this save huge numbers of lives; it could massively reduce the strain on health systems of treating and caring for people in ill health as a result of smoking.”

    No countries have laws currently making it illegal to sell tobacco to young people. New Zealand’s groundbreaking legislation to ban the sale of tobacco products to anyone born in or after 2009 was recently repealed.

    To date, few studies have analyzed the impact of banning the sale of tobacco products among specific age groups or generation, with most focusing on potential health benefits rather than deaths.

    The new study is the first to evaluate the effect that implementing a tobacco-free generation would have on future lung cancer deaths. It focused on people born between 2006 and 2010 because the legal age for buying tobacco products is 18 years in most of the countries included in the analysis.

    Future lung cancer death rates were predicted based on historical data on 82 countries recorded in the WHO Mortality Database. These estimated rates were applied to data in the GLOBOCAN 2022 database—an IARC global cancer statistics platform—to predict lung rates among people born between 2006 and 2010 for 185 countries. The number of avoidable smoking-related lung cancer deaths was calculated using data on lung cancer deaths among people who had never smoked from a previous study.

    The analysis indicates an estimated 1.2 million lung cancer deaths could be prevented in 185 countries if smoking was eliminated among people born between 2006 and 2010. This could prevent 40.2 percent (1.2 of 2.9 million) of the total lung cancer deaths expected to occur in this birth cohort by 2095.

    Almost half of expected lung cancer deaths among men could be prevented (45.8 percent, 844,200 of 1.8 million deaths), and close to one-third of expected deaths in women (30.9 percent, 342,400 of 1.1 million deaths).

    Among men, the greatest number of potential lung cancer deaths avoided would be in upper-middle-income countries (64.1 percent or 541,100 of 844,200 deaths). The impact would be greatest in Central and Eastern Europe, where 74.3 percent of potential deaths (48,900 of 65,800 deaths) could be averted. In women, the most potential deaths averted would be in high-income countries (62.0 percent or 212,300 of 342,400 deaths). The greatest impact would be in Western Europe, where 77.7 percent of deaths (56,200 of 72,300 deaths) could be avoided.

    Overall, most of the potential prevented deaths would occur in low- and middle-income countries (LMICs), with estimates suggesting almost two-thirds of the potential deaths avoided (65.1 percent or 772,400 of 1.2 million) would be in these countries. The other potential deaths avoided would be in high-income countries, where close to two-thirds of all potential lung cancer deaths (61.1 percent, 414,100 of 677,600) would be prevented.

    “While rates of smoking in high-income countries have fallen in recent years, lung cancer remains a leading cause of death and disease. In low- and middle-income countries, which have rapidly growing populations of young people, the impact of banning tobacco sales could be even greater,” said author Isabelle Soerjomataram of the International Agency for Research on Cancer,

    “Part of the reason why eliminating smoking could save so many lives in low- and middle-income countries is because they tend to have younger populations than high-income countries. Smoking also remains very common in many of these countries, while rates have fallen in many high-income countries. While we must redouble our efforts to eliminate smoking in all parts of the world, this is especially important in low- and middle-income countries.”

    The authors acknowledge some limitations to their study. It was not possible to take into account all the factors affecting implementation, such as the black market or poor compliance, but the authors conducted further analyses to estimate the reduction in health impacts if the ban was not completely effective. Lack of data in some regions meant lung cancer predictions could only be carried out for 82 countries. Predictions for other countries—mostly low-income countries—may be over- or underestimated as these were produced by extrapolating data based on location and lung cancer burden. There was limited data on lung cancer rates among people who have never smoked—some from before the 2000s—which could affect the estimates as rates may have changed due to improvements in healthcare. Predictions did not account for the use of e-cigarettes.