Author: Taco Tuinstra

All in the Paper

Photo: RTI
Republic Technologies strengthens its lead in the world of RYO and MYO.
By Stefanie Rossel
While a niche compared to the global combustible cigarette market, the roll-your-own products category continues to grow steadily. Trouve360 Reports valued the global RYO products market at $8.72 billion in 2021 and projects it to reach $10.67 billion by 2028, reflecting a compound annual growth rate of 2.9 percent. The Covid-19 pandemic has boosted the sector, according to Santiago Sanchez, executive president of Republic Technologies International (RTI), a leading supplier of smoking accessories probably best known for its JOB, Zig-Zag and OCB rolling paper brands. “Sales increased a lot in 2020–2021 due to the stocking situation and increasing demand,” he says. “Some retailers overstocked. Now we have a kind of stabilization, which started early this year for our company. Sales have stabilized at a higher level than before Covid.”
The RYO category also benefits from its unique position in the tobacco industry. “If you look at the U.K., for example, where vaping has become very popular, you will notice that the RYO market has not been shrinking because of people switching to vape products,” says Sanchez. “Whilst we have lost some customers to vaping, we have won new customers who have downtraded from highly taxed factory-made cigarettes.”
Due to continuing tax increases for cigarettes, Sanchez expects more smokers to switch to more affordable RYO and make-your-own products. Production planning, however, has become more difficult for his company: “Currently, the situation is very dynamic due to inflation and the energy crisis following the Russian war against Ukraine and due to stockpiling; you don’t know what will happen tomorrow,” says Sanchez.
RTI boasts the largest paper booklet factory in the world. It is located at the company’s headquarters in Perpignan in the south of France and has an output of 1.2 billion booklets annually.
The company is also present in Barcelona, Spain, where it moved to a new, larger site last year. Here, RTI manufactures filter tubes for Spain, Portugal, France and Italy. With its two tube maker machines, the factory has a capacity of 4 billion tubes a year. With five filter maker machines, the plant also supplies 15 billion filters as a base for the tubes as well as for sale as bagged filters.
With Austria-based Altesse, RTI has a third production facility in Europe that manufactures tubes and filters for Central Europe; Germany is the main market for tubes in Europe. Top Tubes in Montreal, Canada, supplies the North American market with filter tubes. A plant in North Carolina produces RYO and MYO products as well as pipe tobaccos for the United States, where the RTI operates under the name Republic Brands. Furthermore, five distribution companies in the U.S., Canada, France, the U.K. and Germany are affiliated with RTI.
Controlled Process
Santiago Sanchez
The company sells to 110 countries worldwide and is vertically integrated. Most of the paper it processes is produced by its sister company Papeteries du Leman, which is associated with the privately held Republic Technologies Group. “From cigarette paper to the final product, everything comes from one company,” Sanchez emphasizes. “We also have close ties with the people growing the plants for the raw materials of our products, for example the farmers in Champagne who grow hemp for our hemp papers.”
RTI has total control of the process, according to Sanchez. To help reduce greenhouse gases, the company tries to source its materials locally as much as possible. “Except for the Arabic gum that is imported from Africa and the bamboo that we source from China, all raw materials and machinery come from within 500 km of our Perpignan site,” says Sanchez.
Operating in a comparatively small segment of the tobacco industry, RTI does not have available as vast of an array of ready-made manufacturing equipment as the large cigarette companies do. Instead, the smoking accessories supplier has an R&D department with a team of engineers and technicians who design all machinery, which is then custom built. Maximized automation and flexibility are key requirements of the equipment as RTI produces many different paper specifications based not only on cellulose but also on textile fibers such as hemp, flax, bamboo and rice. Traceability is another consideration. Each bobbin is marked with a matrix code so that the paper can be traced back to the machine and even the canal on which it was manufactured. As one measure to protect its products from being counterfeited, RTI embosses its papers with watermarks.
Counterfeiting is a big issue in the RYO category, according to Sanchez, who observes this threat especially for RTI’s OCB brand, with fakes coming mostly from China. The company says it relentlessly pursues counterfeiters. In March this year, it won a significant legal victory in the U.S. when a jury found that a Georgia-based wholesaler had willfully sold and distributed counterfeit rolling paper products under Republic Brands’ TOP and JOB trademarks. Republic Brands and its affiliates were awarded $11 million in damages from the counterfeiting wholesaler and its owner.
R&D is Key
At its headquarters, RTI has a dedicated laboratory that checks the ingredients and raw materials of the company’s products for regulatory compliance. It also analyzes competitors’ products and fake versions of its own trademarks. The lab is equipped to measure all paper characteristics, such as opacity, tensile strength, porosity or thickness.
R&D is a must for RTI because of legislation, the move toward more environmentally friendly production and other factors, says Sanchez. “Regulation makes work highly complicated. Being delivered to 110 markets, our products have to comply with all the different regulations, health warnings and even plain packaging requirements, as is the case in Israel,” he says.
RTI’s lab also provides vaping machines and related testing equipment. The company diversified into the vape category in 2014 and has since been selling e-liquids under the E-CG brand. In October 2020, the company acquired French liquid manufacturer Innovative – So Good to expand the scope of its business. Today, RTI is one of the leaders in the French vape market, where its liquids are exclusively sold through tobacconists. All liquids are created at the Perpignan site.
One of the advantages of rolling papers is that they can be made with naturally occurring fibers and without calcium carbonate and citrate as combustion additives, as is the case with factory-made cigarettes.
In June 2019, the EU Single-Use Plastics Directive entered into force. Since then, all tobacco products with filters and filters marketed for use in combination with tobacco products in the common market must carry a label that states that the products contain plastic.
Presently, the RTI’s R&D team develops many products that are more environmentally friendly. RTI has launched a line of biodegradable filters that are made with paper. Touch and filter properties are virtually the same as those of cellulose acetate (CA) filters, explains Sanchez. “It’s the result of a two-year development,” he says. “Technically, it replicates CA. Tests have shown that smoking experience is the same, and from a physical point of view, pressure drop equals that in a CA filter. We are the only ones offering this kind of biodegradable filter for RYO. The paper is the key; it is made from cellulose and viscose. Only few paper manufacturers are capable of producing this.”
RTI also markets its biodegradable filters in some of its tube products. Environmentally friendly filters today account for 20 percent of the company’s turnover from filters.
New Base Materials
Regarding rolling papers, the company has a wide range of products in its portfolio. RTI claims to be the only company selling cigarette papers that contain real rice fibers. “Rice fibers are quite fragile; they tend to break too often on high-speed machines,” says Sanchez. “So many manufacturers stopped making it. We developed a rice paper in 2021 with a mixed blend consisting of 50 percent rice and 50 percent hemp and adopted our manufacturing process to handle the product.” Rice paper is one of the original cigarette paper types; it burns more evenly and reportedly gives more of a natural taste, so many consumers still want it. The rice that RTI processes in its paper comes from the French Camargue region.
In 2021, RTI also introduced Roor rolling papers with CBD-infused gum, which are distributed in markets where CBD is legal, such as the U.K. and Germany. “Due to Covid, the product has been launched only recently, but it’s doing particularly well in Germany. We also offer variants with rice, organic hemp and unbleached papers,” says Sanchez.
OCB Bamboo is another newcomer from RTI. “We have developed a full range of bamboo papers, which we are now planning to sell worldwide,” Sanchez says. “OCB Bamboo has been a big success in the U.S. Bamboo is good for the environment; it grows fast and needs no fertilizers. We are trying to find an alternative source to China, for instance, in the Philippines.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

August 1, 2022
Tools Of The Trade

Photo: JTI
At a summer event in London, JTI showcases some of the devices that may help England achieve its smoke-free ambitions.
By George Gay
In his U.K. government-commissioned review, “Making Smoking Obsolete” [in England], Javed Khan said he had seen no evidence of a plan by industry to move toward meeting the ultimatum “for industry to make smoking obsolete,” which was included in the government’s 2019 prevention green paper. I’m not certain what is meant by “industry” here, but assuming it means partly or exclusively the tobacco industry, and perhaps the nicotine industry, this statement seems extraordinary. After all, one of Khan’s reviews, “Critical Interventions,” recommends promoting as effective tools to encourage smokers to quit their habit some of the products that, for well over a decade, the tobacco and nicotine industries have been developing, making available and promoting insofar as they have been allowed to do so.
The independent e-cigarette industry has arisen almost solely for the purpose of converting as many smokers to vapers as possible—to making smoking obsolete, if you like. That is its raison d’etre. Of course, a purist might complain that individual vaping industry firms also want to make a profit, but making a reasonable profit provides funding for new developments and, more generally, makes the world go round.
So perhaps the government’s ultimatum was aimed only at the tobacco industry. But even in this case, it seems somewhat uncharitable not to give recognition to the enormous investments and efforts that have been made by tobacco companies in developing what I am comfortable calling lower risk products and, especially, in the scientific validation of their products’ lower risk credentials. And this is not to mention that, as far as I am aware, it was individual tobacco companies that first started to apply the concept of “harm reduction” to tobacco/nicotine consumption and that, in the U.K., first suggested setting a target date for ending smoking: 2027.
If my memory serves me correctly, the emergence of the tobacco harm reduction principle predated the arrival of vaping products and was based on snus, a product that is without doubt one of the least risky tobacco products of all but one that, inexplicably, was and is banned in the U.K. and one that Khan believes should remain banned. And it is worth mentioning that the country might conceivably have been well on the way to meeting the 2027 target if the government had been more ambitious and reacted more positively in 2017, when the target was suggested, largely based on the use of heated-tobacco products (HTPs). Certainly, I think the U.K. would have been in a better place if e-cigarette companies had been allowed to advertise the consumption of their vaping products as being 95 percent less risky than the consumption of combustible cigarettes, a figure that, to its credit, the government had long accepted.
Coincidentally, a range of U.K.-market, lower risk products was on display during Japan Tobacco International U.K.’s summer event held at the Mandarin Oriental Hotel in London on July 13, one of which was launched in 2019 and another of which was launched in 2020—so, in line with the government’s ultimatum, though not necessarily in response to it. There were three products in all—a vaping device, an HTP and a nicotine pouch—so, at the very least, JTI U.K. must be given credit for having made a huge effort, if not toward making smoking obsolete per se but toward providing as far as it can the tools and encouragement for smokers to switch to less harmful products. It is, after all, beyond the power of a single company to “make” smoking obsolete; only the government has the power to come close to doing that and, no doubt for good reasons, it has chosen not to do so.
The summer event, dubbed “Innovating for Tomorrow,” was attended by about 300 people, including those representing trade and retail partners, community investment partners, agencies, think tanks and the media. About 20 politicians from across the political spectrum were also scheduled to attend, though whether they all tore themselves away from the Conservative Party’s leadership hustings in Westminster I don’t know. Given this attendance and an abundance of fine drinks and delicious food, it is not surprising that the evening was devoted, aside from two short speeches—by Charlie Cunningham-Reid, U.K. corporate affairs and communications vice president for JTI U.K., and Gemma Bateson, U.K. sales director—to relaxed discussions around and away from the product displays. On what was for England a hot day, the venue, with its two large, airy rooms and pleasant garden overlooking Hyde Park, lent itself to such discussions.
One of the products on display was Logic Compact (more information on the products displayed is available at www.jti.com/europe/united-kingdom), a closed-tank e-cigarette that is used with pods of e-liquid available in a range of flavors. At the display stand for these products, much was made of the high level of testing that was carried out on the devices and e-liquids. And, interestingly, a figure from the Office of National Statistics that was on display had it that about 3.3 million people in the U.K. used e-cigarettes, which was something of a testament to the effort that had been made by the vaping and tobacco industries to deliver smoking obsolescence.
The most recent JTI U.K. reduced-risk product to be made available on the U.K. market and that was on display at the summer event was Ploom, an HTP launched in 2020. Ploom is said to offer an authentic smokeless tobacco experience delivered through the action of an innovative heating technology that causes no combustion and no burning and therefore produces no smoke or tar. Consumers have already embraced e-cigarettes, and the government has largely accepted them, so JTI U.K. will be hoping to see the same level of acceptance for HTPs. These products are certainly likely to appeal to consumers on price, especially those used to paying around £9 ($10.77) for a pack of cigarettes. After an initial outlay of about £45 on a device, consumers pay about £4.50 for a pack of 20 EVO tobacco sticks, which come in a range of flavors and strengths.
Meanwhile, JTI U.K.’s Nordic Spirit nicotine pouches, which were launched in the U.K. in 2019 and are available in a range of flavors and strengths, are said to comprise a discreet product that can be used at any time since, on consumption, they produce no smoke or vapor and contain no tobacco. Here is a product, I think, that indicates the length JTI U.K. has gone to cut the use of combustible products. When it launched Nordic Spirit, the company could have had little idea how the product was going to be received because there was little knowledge about such products among U.K. consumers, who, after all, had not been allowed to buy snus, a cousin of the nicotine pouch. Surprisingly, perhaps, but encouragingly, participants at the London event were told that sales growth had been good, which is perhaps an indication of the importance of choice in offering alternative products to smokers, who too often are treated as if they comprised one homogeneous group with one set of likes and aspirations.
The news about the growing interest in nicotine pouches must be good, too, for the environment. This is a pared-back product that must have a low negative impact on the environment, a feature that we are all discovering is hugely important. I have to say, too, that during conversations around the display stands, I heard of the initiatives being undertaken by JTI U.K. to ensure that when alternative devices are no longer operable, they are disposed of properly. There is probably some way to go in regard to this, but you have to say that these efforts are likely to be some way ahead of those of the government. As I am writing this piece, of the five people still standing for the leadership of the Conservative Party and therefore to become the next prime minister, only one was unequivocally backing the government’s net-zero emissions by 2050 target.
It’s worth noting that a small pamphlet, “JTI U.K. at a Glance,” that was made available to participants at the summer event indicated that JTI is still committed, throughout its global operations, to net-zero greenhouse gas emissions by 2050.
George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.

August 1, 2022
Making a Splash

Photo: NewCo
A small water filter and a biodegradable sample bag may help reduce the environmental impact of tobacco production.
By George Gay
The U.N. Biodiversity Conference is due, Dec. 5–17, in Montreal, Canada, to convene governments from around the world to agree to a new set of goals for nature, according to the Secretariat of the Convention on Biodiversity. That is the good news, I guess. The bad news is that, in a note posted June 21 on the U.N. Environment Program website, the secretariat said that despite ongoing efforts, biodiversity was deteriorating worldwide and that this decline was projected to worsen with “business-as-usual scenarios.”
One of the concerns I have is that we seem to be piling one existential crisis on top of another. A decline in biodiversity feeds climate change and environmental damage, and climate change and environmental damage feed a decline in biodiversity. And because of this seemingly catastrophic loop, I find it’s easy to become overwhelmed by a feeling of helplessness. But there is another way of looking at things. Firstly, we can admit that we are faced with an existential crisis, and secondly, we can respond positively in any and every way possible. And, luckily, there are some seemingly modest interventions that step out of the shadow of business as usual and punch above their weight.
The idea that, in attempting to tackle the environmental crisis, we needed to look beyond the obvious, major interventions was suggested to me recently by Rainer Busch, the managing director of the tobacco dealer NewCo, in response to something I had written about deforestation being caused by tobacco farmers using wood fuel for curing tobacco. While accepting that such deforestation was a problem, he pointed out that a bigger problem was caused by the need for farmers and their families—along with many other people in less developed countries—to burn wood for other reasons, including the need to boil otherwise nonpotable water.
Starting Small
Fortunately, this domestic problem, while bigger, is potentially easier to address and is starting to be addressed in a modest way through a newly incorporated company, NewCo Pro, which was set up to focus on business opportunities that embrace positive socioeconomic initiatives outside the tobacco industry, though mostly connected with it. And one of NewCo Pro’s first initiatives has seen it partner with Sydney 905, a South Africa-based company that offers water filters.
Jose Maria Costa, the senior executive advisor at NewCo Pro, who first came across these filters, is passionate about their potential to improve the lot of people who do not have easy access to potable water. Costa, who has lived in and visited many less developed countries, told me that, notwithstanding his experience, he was horrified when he started to investigate how, in the 21st century, millions of people lived without ready access to acceptable water. It seemed impossible that so many people still lived in this way, he said.
There are a lot of water filters on the market, but Costa reckons the Sydney 905, for which NewCo Pro is the worldwide sales agent, is ideal. And it is hard to disagree. This is a robust, easy-to-use, versatile unit that is small enough to be carried in a largish pocket but with capacity enough to serve a family. It is mainly intended to be fitted to the outlet tap of a container of collected river, well or rainwater, and, using a simple gravity feed, turn about 30–35 liters of murky-looking contaminated water crystal-clear and safe each hour while retaining naturally occurring, safe minerals. But it can also be used to process mains water, where such is available, or it can be attached to a plastic bottle of water taken from a river, in which case the drinker supplies the necessary pressure simply by squeezing the bottle. It uses neither chemicals nor batteries.
As well as the Sydney 905 Filter, which uses a 0.1 micron hollow-fiber membrane that Costa expects to attract most interest, there is the Sydney 905 Purifier, which uses a 0.01 micron membrane and is therefore suitable only where mains pressure is available. The exact specifications of the two units are fully explained at www.newco-pro.com, which also provides the results of water purity tests undertaken by various official certification bodies along with some informative and entertaining videos.
Return on Investment
One of the most compelling things about the Sydney 905 filter has to be its value. While, at about $40 a unit, it would not be cheap for a financially impoverished family, there is no need to change the filter, so the unit could last for very many years without incurring any maintenance costs as long as it is regularly and conscientiously cleaned using a simple backwashing process. And while the initial outlay is not insubstantial, the payback is rapid and ongoing. One Kenyan farmer who wrote to Costa said that by using the filter, his family of 10 was saving about $60 a month because it no longer had to buy bottled water. Additionally, another savings, in costs and health, was being enjoyed because the farmer and his family were no longer losing work and school days to sickness caused by water pollution.
It is surely not beyond the bounds of possibility that these filters could be provided free of charge by major companies working closely with tobacco and other farmers or that at least these companies could provide interest-free loans to help such farmers buy them. After all, as Busch pointed out, the use of these filters can help in the fight against deforestation, and as Costa added, most tobacco companies have committed to the U.N.’s Strategic Development Goals, No.6 of which aims to provide everybody with clean water by 2030.
Things are moving. Costa said that NewCo Pro believed it was close to an agreement to start production of the filters in India, for the Indian market, and that the company had been in contact with large nongovernmental organizations, local governments and tobacco companies around the world. But progress is not what it should be, given the personal and population-wide problems caused by the lack of potable water and given that the Sydney 905 solution to the problem seems so simple but powerful. Achieving goal No.6 is going to require all hands to the pump and a willingness to step out of the shadow of business as usual since, according to the NewCo Pro website, in 2022, 844 million people lack basic water services, 2.2 billion people lack safely managed drinking water, and 3.5 million people die each year from causes linked to unsafe water.
Biodegradable Bags
Meanwhile, there is a certain irony in NewCo Pro promoting the distribution of these filters because they are made of plastic, and another NewCo project is aimed at reducing the use of plastics. But there is a clear difference here. The filter units are meant to last many years whereas the plastic NewCo is trying to eliminate is single use, such as that used for wrapping leaf tobacco samples.
Busch has been working on this project for about three or four years now, since before the formation of NewCo Pro. He started by replacing the plastic sample bags with reusable cotton bags, but while these were popular with customers up to a point, they had the disadvantages that they weren’t transparent and that they weren’t as good as plastic at retaining moisture.
What NewCo Pro is now offering is a transparent bag made from potato starch. These EU-certified and Germany-certified food grade bags are 100 percent biodegradable so that while, theoretically, they have an unlimited life under normal circumstances, they break down into compost that can be used as fertilizer within 90 days to 150 days of their coming into contact with an environment open to the elements. Busch said that farmers in Italy and Spain are already using seedbeds made from the product, which is ideal for such use and better than commercially available fertilizers, a seemingly critical factor at a time of soaring fertilizer prices.
But there is a catch. While the people on the ground who Costa talks with are enthusiastic about this biodegradable product, the message apparently is not getting back to the people who make the decisions, or those people are stuck in business-as-usual mode and are not making the decision to change from plastic to potato starch. If it is a lack of decision-making, this seems incredibly short-sighted, especially given the huge problems being caused by plastic waste and given that switching to the new type of bags would allow companies to improve the services they offer and be seen to improve those services while incurring only an immaterial increase in costs. There seems to be no reason why companies could not make the switch immediately. After all, if a relatively small leaf dealer such as NewCo can research this matter and make the change, surely others, with the research having been carried out for them, could make the switch also.
Undaunted, NewCo Pro is already researching the use of potato starch for applications that go beyond sample bags—applications such as replacing the polyliners used for packing certain lots of tobacco for particular customers or replacing the plastic polypots used in the production side of the industry. And it is willing to put companies wishing to follow its lead in touch with the suppliers of such materials. When it comes to plastics, the message from Busch and Costa is “enough is enough.”
George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.

August 1, 2022
Smart Sachets

Photos: Amplicon
Amplicon presents the first pouch with controlled nicotine release.
By Stefanie Rossel
All nicotine pouch brands presently on the market use a form of cellulose as a carrier material. Powdered cellulose is drenched in a mixture of pharmaceutical grade nicotine, flavors and a pH alignment to bring the product’s pH to the optimum level for nicotine uptake. Although the blend is moistened with polyglycol or glycerol, the pouches are slightly dry. This leads to the user feeling the nicotine effect and perceiving the taste within a few seconds after placing a pouch behind the lip. For some users, the sudden intense nicotine hit is too much—they react physically; sometimes they even get sick. Cellulose has another downside: During consumption, it may dissolve into a slimy lump in the consumer’s mouth, thereby quickly losing its flavor.
Release of pouch nicotine is controlled mainly by the solubility of the nicotine, which means the size of the pouches also determines the release profile. In nontraditional snus markets, users prefer small pouches. These, however, release nicotine and flavor in a very short time.

Hakan Engqvist
A Swedish consumer products company set out to solve these issues. In June, Amplicon presented its Freee nicotine pouches, which it describes as the next generation of oral nicotine. While from the outside the pouches look like those already on the market, they are filled with a powder made of bioceramics. Under the microscope, bioceramic granules look like Swiss cheese, having a porous inner structure. The bioceramics used for the pouches belong to a family of chemically bonded ceramics. The substances can be found in nature. For example, hydroxyapatite, a bioceramic generated in the body by biomineralization, forms the basis of the hard matter of all mammals. For the past 40 years, bioceramics have been used clinically for hard tissue replacement.
Amplicon’s Freee bioceramic platform also contains water, bulk and the active ingredients nicotine and flavor, which bind to that platform. Substance release takes place through diffusion and dissolution. This allows for a more constant, controlled release of nicotine and flavor and better absorption by the human body. The company uses nicotine salt in its pouches. Water-soluble flavors integrate best with the material, but oil-based flavors can be used as well.
The technology allows manufacturers to produce pouches that are small but pack the punch of much larger products, says Amplicon founder Hakan Engqvist, who is also a professor in materials science at Uppsala University. “Our technology enables customized nicotine-delivery and a much-improved nicotine and flavor experience, and it allows for pH stability over time. It also maintains the consistency of the pouch better. Feedback from consumer tests has been positive.”
Current pouch products, he explains, also have an issue with shelf life because their pH levels are less stable than they are in bioceramics.

Tomas Hammargren
Intelligence Inside
The new pouch technology stems from pharmaceutical research. “We have been and are still working on an opioid-based pain relief formulation,” says Engqvist. “Through different routes, we started to work with solid vape to load nicotine into the ceramics and thereby reduce the use of e-liquid and instead just have a tablet. Controlled release of nicotine from pouches then became the next development, quite natural in a snus country such as Sweden.”
Engqvist has lots of experience with bioceramics. Amplicon’s parent company, Emplicure, which he also co-founded, combines biomaterials with existing pharmaceutical substances to deliver drugs precisely and safely. Its controlled-release technology targets unmet medical needs, especially in opioid-based pain relief where its formulations offer not only improved therapy with less discomfort but also reduce the risk of opioid abuse, according to the company.
Its patented bioceramic platforms are based on tunable nanostructures that enable the distribution of active substances in bioceramic materials. The active substance is then released to achieve the desired effect by controlled diffusion. The release and dosage of the active substances can be tuned by adjusting the size of the pores, the choice of biomaterial and the excipients.
Amplicon was established to leverage Emplicure’s technology in the nicotine market. In June, the company filed for a trademark registration for Freee nicotine pouches at the European Intellectual Property Office. The company presently manufactures the pouches in-house at pilot scale but says it is able to scale up production from laboratory volumes to commercial volumes. Control over the making of the ceramic powder will stay with Amplicon, which has received a lot of interest in its technology from both established distributors and pouch manufacturers, says Tomas Hammargren, chairman of Amplicon.
The product is scheduled to hit the market by mid-2023. Initial target markets will include both new, “non-pouch” geographies, such as Europe, Japan and Korea, and existing pouch markets, according to Hammargren. “To reach all important markets, such as Southern Europe or Asia, a pouch product needs to be as small as possible but has to provide a good nicotine and flavor hit, which is difficult to achieve with cellulose,” he says. “It’s hard to imagine an Italian woman putting a big pouch under her lip. The same is true for Asia. Our product is more urban, metropolitan and attractive to female and new users, hence we are confident that it will also be successful in existing oral nicotine markets. It will be the perfect complement for vapers and users of heated-tobacco products in places where smoking and vaping is banned.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

August 1, 2022
Tobacco Sued Over MSA Payments
Tom Miller
Iowa Attorney General Tom Miller accuses Philip Morris USA, R.J. Reynolds Tobacco Co., and 16 other tobacco companies of defrauding Iowa of more than $133 million, according to a lawsuit filed Thursday.
The lawsuit stems from the 1998 Master Settlement Agreement, which requires tobacco manufacturers to pay billions annually to participating states in exchange for the states agreeing not to sue for health-related damages to citizens. The motion, filed in Polk County District Court, alleges that the companies have withheld a portion of their annual payments to Iowa in bad faith and “through a scheme of false claims and feigned ignorance.”
The tobacco companies demand that Iowa must go to arbitration to recover each year’s withheld payment. According to Miller, it has taken years to litigate each dispute, creating a long backlog and a growing amount of withheld payments. Iowa has prevailed in every dispute, most recently in September 2021, but the companies still refused to pay the amount they withheld from Iowa.
“We have fought, and won, these legal battles for years, and there is no end to these disputes in sight,” Miller said in a statement. “We now must escalate the matter and force the tobacco companies to pay what they owe the state of Iowa.”
The lawsuit seeks to recover actual and punitive damages, plus attorneys’ fees and other costs. Under Iowa’s False Claims Act, the state seeks three times the amount of actual damages.
July 29, 2022
New Packaging for ‘1839’ Cigarettes

Photo: USTC
Premier Manufacturing, the consumer products division of U.S. Tobacco Cooperative (USTC), has redesigned the packaging for 1839 cigarettes.
“Premier developed a premium visual design that showcases updated brand colors, a cleaner overall look and the distinctive 1839 logo; all while maintaining some traditional elements to help make 1839 attractive on stores cigarette fixtures,” USTC wrote in a press note.
“The bold red and rich blues are just some of the colors used in the packaging design that is anchored by historic 1839 elements such as the silhouette of a farmer with the horse and plow on a field image that simulates a tobacco leaf. The 1839 quality seal refers to the heritage and premium blend of tobacco used in the product and the 1839 date is when the flue-cured tobacco process was discovered in North Carolina.”
Also incorporated is “A Product of US Farmers” that reflects the brands commitment to USTC’s southeast based tobacco farmers who own the cooperative.
“We believe our new packaging design better reflects the needs of today’s consumers, while reinforcing the brands strength and heritage across the full line of 1839 cigarettes,” said USTC Senior Vice President Russ Mancuso.
July 29, 2022
Vaping Advocate Greg Conley Joins the AVM
Greg Conley
Longtime vaping industry advocate Gregory Conley is joining the American Vapor Manufacturers Association (AVM) as director of legislative and external affairs.
Under the direction of AVM President Amanda Wheeler, Conley will focus on government and media relations, while helping advance public policy supporting the American vaping product industry in its fight for survival.
“Over the last decade-plus, myself and millions of American adults have given up cigarettes because of vaping,” said Conley. “During that time, I have been proud to advocate for vaping from the perspective of a consumer and harm reductionist. In this new role at AVM, I will continue to push for appropriate regulations to ensure that American businesses are not replaced with a multibillion-dollar illicit market.”
“Gregory is a critical voice for vaping and understands adult smokers and ex-smokers face dire circumstances because of the FDA,” said Wheeler. “One billionaire is pumping hundreds of millions of dollars into campaigns designed to end the vaping industry. The stakes have never been greater and I am thrilled to have him aboard to work towards a unified industry.”
Conley has a long history of advocacy for vaping products and tobacco harm reduction, dating back to 2010. While receiving a la and business degree from Rutgers University, Conley served as the pro bono legislative director for the Consumer Advocates for Smoke-Free Alternatives Association.
Conley then founded the American Vaping Association (AVA), and during his time there he testified before dozens of state legislative bodies, appeared on numerous news networks, and participated in a White House listening session with then-President Donald Trump.
Conley plans to continue working with AVA as it charts a new path forward focusing on voter education and outreach.
July 29, 2022
JT Reports ‘Robust’ Performance

Masamichi Terabatake (Photo: JT Group)
The JT Group reported net revenue of ¥1.27 trillion ($9.55 billion) for the second quarter of 2022, up 10.7 percent over that reported in the comparable 2021 quarter. Core revenue at constant exchange rates increased by 3.7 percent to ¥1. 14 trillion. Adjusted operating profit at constant currency increased by 8 percent to ¥386.7 billion.
On a reported basis, adjusted operating profit increased by 15.8 percent to ¥414.9 billion. Operating profit increased by 18.9 percent to ¥383 billion. Profit increased by 17.3 percent to ¥264.1 billion.
“In the first half, the JT Group delivered a robust performance, mainly driven by strong pricing,” said JT Group President and CEO Masamichi Terabatake in a statement. “We are also encouraged by the Ploom X volume and share performance in Japan. In the second half of the year, we will be leveraging learnings from Japan for international Ploom X launches.
“We have revised our 2022 full year reported adjusted operating profit and profit guidance upwards, driven by favorable currency movements against the Japanese yen. However, the adjusted operating profit at constant FX is revised downwards considering higher input costs impacting our supply chain operations. Dividend per share guidance for full year remains unchanged at 150 yen per share. The interim dividend is 75 yen per share.
“Regarding Russia, while we continue to manufacture and distribute our products in full compliance with national and international sanctions, the operating environment is becoming increasingly complex. Under these circumstances, the JT Group continues to evaluate various options for its Russia business, including potentially transferring its ownership, and taking necessary decisions to address the changing situation in accordance with the group’s management principle.”
July 29, 2022
Push To End ‘Essential Commodity’ Status

Photo: sezerozger
The Bangladesh Ministry of Health and Family Welfare has asked the Ministry of Commerce to remove cigarettes from the essential commodities list, reports The Business Standard. The removal is necessary to help the government achieve its “tobacco-free Bangladesh” objectives, according to the health ministry.
Any product covered by the Essential Commodities Act enacted 66 years ago can be freely promoted for wholesale and retail, and no restrictions can be imposed on the marketing of these products, even under emergency circumstances.
Workers in the essential commodities sector cannot strike, and no essential commodities can be hoarded. The essential commodities list was created when Bangladesh was still part of Pakistan. Over the years, new products, including palm oils, turmeric and cumin, have been added, but none have been taken off. Other products on the list include typewriters, 35 mm (cine) raw films and sewing machines.
The law permitted tobacco companies to continue operating through the Covid-19 pandemic, even as other factories, including in Bangladesh’s garment industry—the country’s main export sector—were shut down.
In 2016, Prime Minister Sheikh Hasina set a goal to make Bangladesh tobacco-free by 2040.
Because cigarettes are listed as an essential product, however, it is impossible for the government to fully implement the Smoking and Using of Tobacco Products (Control) Act.
Further complicating matters, cigarettes are the largest source of government revenue. The National Board of Revenue collected BDT278.3 billion ($2.95 billion) in value-added tax and excise duty from cigarettes in fiscal year 2021–2022.
According to the Bangladesh Cancer Society, the government spent BDT305.7 billion in fiscal year 2017–2018 to treat patients with tobacco-related illnesses.
July 28, 2022
Firms Shun Track-And-Trace System

Photo: Maksym
More tobacco companies must install Pakistan’s new track-and-trace system to tackle the country’s massive tax evasion problem, according to Project Director Tariq Hussain Shaikh.
Out of the 40-plus companies registered with the Pakistan Tobacco Board, only three—Philip Morris Pakistan, Pakistan Tobacco Co. and Khyber Tobacco—have installed the track-and-trace system that became operational on July 1, reports the Business Recorder.
According to Shaikh, the system has significantly boosted government tax collections in other sectors. In the sugar industry, for example, sales tax collections increased by 34 percent after its implementation at the end of 2021.
Success, however, depends on across-the-board implementation, Shaikh cautioned. Unless more tobacco companies adopt it, the track-and-trace system will not reduce tax evasion, which in Pakistan amounts to PKR80 billion ($335.74 million) per year.
In a letter dated June 30, 2022, Pakistan’s Federal Board of Revenue directed all cigarette manufacturers to apply tax stamps to their products from July 1, 2022. Nine tobacco companies have challenged the directive on technical grounds.
July 28, 2022