Author: Taco Tuinstra

  • All Hands on Deck

    All Hands on Deck

    Photo: The Global Forum on Nicotine

    Tobacco harm reduction is gaining momentum but continues to face many hurdles.

    By Stefanie Rossel

    “Tobacco harm reduction: Here for good“ was the theme of this year’s Global Forum on Nicotine (GFN) conference, which took place in Warsaw June 16–18, 2022. Around 50 speakers and panelists discussed the issues that will determine the future of safer nicotine use and tobacco harm reduction (THR). The meeting was preceded by a day of satellite events and once again featured the International Symposium on Nicotine Technology, which highlighted the latest technological advances in the rapidly changing nicotine delivery landscape.

    Two hundred years after the first snus brand was launched in Sweden and almost 20 years after the Chinese pharmacist Hon Lik invented the modern electronic cigarette, THR continues to face challenges. While THR is making good progress in high-income countries, low-income and middle-income countries (LMICs), where about 80 percent of global tobacco users live, are mostly excluded. In India, for example, where smokers of bidi cigarettes and consumers of hazardous oral tobaccos such as gutka represent 85 percent to 90 percent of tobacco users, bidi packs do not even carry health warnings. While gutka is officially banned, prohibition is not enforced. Instead, health authorities focus on the harms of vaping. Although vape products are banned in the country, they are readily available on the black market.

    Thailand legalized the cultivation and consumption in food and beverages of cannabis in early June but continues to prohibit vaping under strict penalties. Vapers risk a jail sentence of up to 10 years. An observational study in South African hospitals not only demonstrated that inpatients had a lack of knowledge of nicotine-replacement therapy (NRT) but also that doctors in LMICs are often not trained to explain to patients how to use NRTs. Research comparing THR in Russia, China, Indonesia and India found that once smokers have understood that combustible cigarettes are harmful, the key challenge is changing behavior. In Russia and China, consumers are generally aware of reduced-risk products (RRPs) whereas in India and Indonesia, nicotine is considered the most harmful constituent, and few people know that RRPs exist.

    Uncontrolled Influence

    Most LMICs have ratified the World Health Organization’s Framework Convention on Tobacco Control (FCTC), which takes a dim view of vaping. This position is backed by one of its largest donors, billionaire and former New York City mayor Michael Bloomberg. In his keynote presentation, journalist Marc Gunther demonstrated that philanthropy is an excise of power that requires scrutiny.

    By pumping millions of dollars into nonprofits and anti-vaping groups worldwide while funding university researchers, a media initiative and a nonprofit health consultancy through the Bloomberg Philanthropies foundation has created an effective global anti-vaping campaign that is not driven by science, according to Gunther. For example, The Union a Bloomberg-backed nongovernmental organization headquartered in Paris, recently published a paper calling for a ban on all e-cigarettes in LMICs. Most damaging, Gunther said, was the relationship between Bloomberg and the WHO, which the billionaire has generously funded with many millions of dollars for a variety of projects, including $5 million for its tobacco work in 2019.

    While few countries ban RRPs outright, the products often face prohibition by stealth. This month, Germany started applying a tax to e-cigarettes, which came on top of the previously applied value tax. With e-liquids now being taxed by volume, their price has almost doubled, which prevents smokers from switching as it conveys the impression that a product taxed so high must be equally as harmful as combustible cigarettes.

    In the U.S., the Food and Drug Administration picks the winners and losers through its tobacco product authorization process with little regard for consumers. The agency’s requirement for comprehensive scientific documentation of a product’s contribution to the protection of public health represents a hurdle that only the largest and most amply funded nicotine companies can manage.

    Prohibiting elements that make vapor products appeal to smokers, such as nontobacco flavors, are also a kind of stealth prohibition that has no effect on overall smoking or vaping prevalence. U.S. states that ban flavors miss out on tax revenues and Master Settlement Agreement money while the number of smokers stays the same and vapers buy their products in neighboring states. Prohibition by stealth, panelists agreed, stifles innovation and, given the discrimination against vape products compared to combustibles, may be potentially illegal in trade law terms.

    Academic Freedom Under Threat

    Misinformation about RRPs and the question of who can be trusted remains one of the biggest issues in tobacco harm reduction. While the trust in science has generally increased through Covid-19, countless flawed studies on less hazardous nicotine products continue to circulate, contributing to misperceptions among consumers. Google Scholar ranks studies according to popularity rather than quality, so even two years after e-cigarette or vaping use associated lung injury (EVALI), studies attributing the outbreak to nicotine vapes rather than illicit THC products still feature prominently in search results. But even research professionals are often interested only in the title, abstract and conclusion of a study and thus fail to detect flawed methodologies.

    A recent example of misinformation is the claim by several emission studies that the aerosol of vape products is polluted with heavy metals. By providing a concise explanation of the ingredients of e-liquids and the complex chemical processes that take place in a device during vaping, Miroslaw Dworniczak, a Polish chemist and author, refuted this assumption, concluding that despite the presence of some potentially dangerous compounds, e-cigarettes were far less risky than regular cigarettes. Mexican physicist Roberto Sussman, who examined 12 studies on metals in e-cigarette emissions, found that all of them were methodologically flawed.

    Having become ideological rather than evidence-based, the health debate about vaping is full of contradictions. Mark Tyndall, an infectious disease specialist from Canada, compared his experience working with HIV with the experience in vaping. It took 40 years for HIV to lose its association with fear, blame and stigma—issues that smokers and vapers are facing too. Medical treatment of AIDS was the greatest breakthrough—vaping, he claimed, could be a similarly efficient weapon to treat smoking.

    Stigma is also present in the academic world, and it goes far beyond suspicion of tobacco-funded studies. Scientists detected “the ghost of Senator Joseph R. McCarthy,” the paranoid U.S. communist hunter of the 1950s, as they often confronted hostility from fellow academics and institutions. Experiences of suppressed academic freedom ranged from a lack of institutional support for THR research to “mobbing” and exclusion from faculties.

    Here for Good, but …

    So, is tobacco industry transformation a myth or a reality? Sharing her view from the corporate side, Flora Okereke, head of global regulatory insights and foresights at BAT, said that her company’s efforts to help smokers switch to less risky products—and therefore doing something for society—had given employees a sense of pride. Peter Stanbury, a political economist, evaluator and management consultant, pointed out that companies such as British Petroleum are also in the process of transformation, driven internally by people who realize that change is required and externally by regulation.

    In advancing tobacco harm reduction, regional networks in THR consumer advocacy play a vital role. Nancy Loucas, founder and executive coordinator for the Coalition of Asia Pacific Tobacco Harm Reduction Advocates, related how her organization, faced with challenges such as government interests in tobacco growing and manufacturing, notably in China and Indonesia, and foreign philanthropist influence in the development of policy, achieved a paradigm shift in several countries by working with an expert advisory group.

    Tobacco harm reduction, panelists agreed, is here to stay; consumers have a right to it. But accessibility of THR will remain a problem, and more restrictions are on the horizon.

  • Bentley: Juul Exit Bad For Harm Reduction

    Bentley: Juul Exit Bad For Harm Reduction

    Photo: steheap

    The Food and Drug Administration’s order to remove Juul products from the U.S. market threatens progress in tobacco harm reduction, according to Guy Bentley, director of consumer freedom at the Reason Foundation.

    Guy Bentley

    Writing on the foundation’s website, Bentley reminds his audience that e-cigarettes are not only less harmful than their combustible counterparts, but they are also more effective in helping smokers quit than FDA-approved therapies such as nicotine gum and patches

    The FDA, he writes, acknowledged as much when it authorized Vuse e-cigarettes in 2021 and claims it recognizes the role these safer nicotine alternatives can play in reducing smoking.

    If the Juul order is implemented, says Bentley, many Juul users will likely return to smoking, while a portion of smokers who would have transitioned to Juul will continue to light up.

    Bentley says the FDA Juul denial makes a mockery of the claim that it’s evaluating science in the best interests of public health. A study published in the New England Journal of Medicine found e-cigarettes to be twice as effective as traditional nicotine replacement therapies.

    According to Bentley, the decision also punctures a hole in the logic of the FDA’s recently announced policy to reduce nicotine levels in cigarettes to minimally or non-addictive levels. Without an acceptable legal alternative, smokers may simply smoke more cigarettes to get their nicotine fix.

    “By banning the most popular e-cigarette among adults, the agency’s commitment to transitioning smokers to safer alternatives rings hollow,” writes Bentley.

  • Taat Quarterly Revenue up Nearly 10 Percent

    Taat Quarterly Revenue up Nearly 10 Percent

    Photo: Taat Global Alternatives

    Taat Global Alternatives reported gross revenue of CAD515,464 ($399,049) for the second quarter of fiscal 2022, up 9.7 percent over that reported in the comparable 2021 quarter. More than 54 percent of its gross quarter revenues came from repeat orders during the quarter.

    The company’s cost of goods sold dropped, reflecting an improvement in gross margin from 28.09 percent in the first quarter of 2022 to 46.1 percent in second quarter of 2022

    The company’s flagship product, a nicotine-free and tobacco-free cigarette called Taat, is currently sold in over 2,700 U.S. stores, which include locations of major national and global chains in the convenience and gas categories.

    As a greater quantity of Taat in retail circulation is now manufactured with the Version III formulation of its patent-pending Beyond Tobacco base material, the company and its wholesale/retail partners have reported improvements to the conversion rates of adult smokers who choose Taat instead of their preferred brand of tobacco cigarettes.

    Earlier this year, Taat entered into an agreement to acquire ADCO Distributors, an Ohio tobacco distributor. The Taat brand name became a registered trademark in eight global markets including the the United States and the European Union.

    “Our fiscal Q2 2022 was a pivotal timeframe for the company as we made two key transitions,” said Taat Founder Joe Deighan in a statement. “The first was the acquisition of ADCO, which added integrated distribution to our business model in addition to a steady revenue stream of over CAD$87 million (based on 2021 financial results) to complement our existing sales pipeline of Taat throughout the United States.

    “The second was rotating Taat inventory with our wholesale and retail partners to ensure Taat made with the V3 formulation of Beyond Tobacco is as available as possible across our nationwide footprint. It’s tricky to articulate just how significant V3 is compared to our previous formulations.

    “Consumer feedback from adult smokers who have tried V3 reflects validation of our mission to create an experience that is truly better than their preferred tobacco cigarette brand. This has done wonders for our conversion rates at the point of sale, which is why we elected to take the plunge to voluntarily replace existing inventory with product made using V3.

    “With the added distribution bandwidth resulting from our acquisition of ADCO, we are excited to be carrying on as an integrated player in the $812 billion global tobacco category, and are thankful to our loyal base of investors for their continued support.”

  • Commission Wants Ban on Flavored THPs

    Commission Wants Ban on Flavored THPs

    Photo: Kuznietsov Dmitriy

    The European Commission on June 29 proposed a ban on the sale of flavored heated tobacco products.

    The move is part of Europe’s “beating cancer plan,” which envisions less than 5 percent of the EU population using tobacco by 2040.

    “With nine out of 10 lung cancers caused by tobacco, we want to make smoking as unattractive as possible to protect the health of our citizens and save lives,” said EU health commissioner Stella Kyriakides.

    According to EU figures, cancer is the second-leading cause of death in the bloc of 450 million residents. There are about 1.3 million cancer deaths and 3.5 million new cases per year in the EU.

    Kyriakides said that regulators need to “keep pace” with new developments to “address the endless flow of new products entering the market.”

    A recent report showed a 10 percent increase in sales volumes of flavored heated tobacco products in more than five EU countries between 2018 and 2020. Overall in the EU, these products exceeded 2.5 percent of total tobacco product sales in 2020.

    The Council and the Parliament will debate the Commission’s proposal before it enters into force 20 days after the publication in the Official Journal. EU countries will have eight months to transpose the directive into national law, and a further three months before the provisions will apply.

  • AOI Partners with University of Lavras

    AOI Partners with University of Lavras

    Alliance One International recently partnered with the Federal University of Lavras (UFLA) in Minas Gerais, Brazil, to provide third-party, specialized training to its agronomic employees around the world. The program was established to promote an enhanced employee skillset, which ultimately can benefit AOI’s contracted farmers through improved efficiencies and maximized income potential.  

    The virtual training program, “From the Seeds to the Cured Leaves,” was conducted by UFLA agronomy professors and took place over the course of six weeks, bringing together AOI tobacco leaf agronomists from 18 countries on five continents.

    “Our global agronomy team members have extensive agronomic knowledge about tobacco production, and most have been working with the crop for several years. This professional development program was organized to offer our employees a continuing education opportunity to deepen their knowledge on some of the most technical and scientific aspects of tobacco cultivation,” said Helio Moura, AOI’s global agronomy director, in a statement.

    Topics covered in the training ranged from methods to build soil fertility to tobacco ecophysiology—the connection between the plant and its environment—at varying stages of the crop production process.

    “Crop production methodologies and best practices are rapidly evolving due to new technologies and research, as well as the impacts stemming from climate change,” said AOI President Alex Strohschoen. “Ensuring our agronomists continue to advance their knowledge base not only encourages employee motivation and engagement, it also aids our global agronomy team in transferring this knowledge to our grower base, helping to strengthen the farmers’ crop quality and yield and delivering value to our stakeholders.”

    The Company intends to expand the partnership to provide further training and education opportunities to employees. Additionally, the training sessions “From the Seeds to the Cured Leaves,” have been recorded and will be available to employees to review.

  • PMI’s Swedish Match Offer Document Now Public

    PMI’s Swedish Match Offer Document Now Public

    Photo: Swedish Match

    The Swedish Financial Supervisory Authority has approved and registered the document of Philip Morris International’s offer for Swedish Match.

    Last month, PMI’s Philip Morris Holland Holdings affiliate offered SEK161.2 billion ($16.14 billion). Swedish Match’s board of directors has advised the company’s shareholders to accept the offer.

    The offer document is available on the offer website in English and Swedish and will be available on the Swedish Financial Supervisory Authority’s website in Swedish.

    A copy of the offer document and a preprinted acceptance form will be sent to shareholders of Swedish Match whose shares were directly registered with Euroclear Sweden as of June 29, 2022.

    The acceptance period ends on Sept. 30, 2022.

  • Nigeria Raises Tobacco Taxes

    Nigeria Raises Tobacco Taxes

    Photo: Richard Darko

    The Nigerian government has enacted a new tax regime this month, reports ICIR Nigeria

    On June 1, the ad valorem tax rate has increased to 30 percent from 10 percent. In addition, the government raised the excise rate on cigarettes to NGN84 ($0.20) from NGN58 per pack of 20 sticks. The excise tax is set to increase further to NGN94 per pack in 2023 and NGN104 per pack in 2024.

    Shisha tobacco, which is currently taxed at NGN3,000 per liter and NGN1,000 per kg will increase yearly by NGN500.

    “This pro-health tax is an effective public health control measure against behavioral risk factors as it can reduce demand and consumption of tobacco products,” said Minister of State for Health Olorunimbe Mamora.

    “It will also prompt tobacco users to switch spending their resources on tobacco products to healthy alternatives such as education, health and others.”

    In compliance with the National Tobacco Act (2015) and Regulations (2019), the government has also commenced screening and issuing operational licenses to qualifying tobacco businesses. 

    The new licensing guideline requires strict adherence to regulations requiring graphic health warnings on tobacco product packaging.

    According to Mamora, about 4.5 million Nigerians 15 years and older use tobacco products, and about 3.1 million are current smokers.

  • Bangladesh Mulls Ban on E-Cigs and Pouches

    Bangladesh Mulls Ban on E-Cigs and Pouches

    Photo: sezerozger

    Bangladesh’ Ministry of Health and Family Welfare wants to amend the country’s tobacco act to ban e-cigarettes and oral nicotine pouches, reports The Business Standard. The proposal also includes new restrictions on combustible tobacco products.

    Health activists have been calling for prohibition of e-cigarettes, which are not mentioned in the current legislation. The proposal would prohibit not only the consumption of vapor products, but also the production, import, export, storage, sale and transportation of e-cigarettes or their parts.

    People caught vaping would face maximum fine of BDT5,000 ($53.80) under the plan, while producers and traders would risk imprisonment for a maximum of six months or a fine not exceeding BDT200,000 or both for the first time. The punishment would double each time the offence is repeated.

    E-cigarettes started arriving informally in Bangladesh a few years ago and quickly became popular. As demand increased, British American Tobacco started producing and selling e-cigarettes in the market. Japan Tobacco is also reportedly preparing to market e-cigarettes in Bangladesh.

    The health ministry’s proposal would also tighten restrictions on traditional tobacco products. Among other provisions, it includes a ban on flavors and an increase in the size of graphic health warnings to 90 percent of the packaging’s surface from the 50 percent required under current legislation. The draft also foresees new retail licensing requirements and limitation on where tobacco can be sold.

    The health ministry has recently sent copies of the draft to stakeholders. The Directorate General of Health Services is accepting opinions on the draft until July 14.

  • Police: Menthol Ban Will ‘Create Crime’

    Police: Menthol Ban Will ‘Create Crime’

    Photo: Nomad Soul

    The U.S. Food and Drug Administration’s proposed ban on menthol cigarettes could have unintended consequences, according to leading law enforcement officers.

    Among other problems, it could boost the illicit cigarette market. In 2020, of the $203 billion cigarettes sold in the United States, 37 percent were menthol. “Transitioning from a regulated market to an illicit one will lead to about $30 billion of an illicit market,” said Major Neill Franklin, former executive director of the Law Enforcement Action Partnership, in a statement published by Menthol is Not a Crime.

    If the FDA bans menthol cigarettes, this will “create crime,” and you will get “homemade menthol cigarettes,” said retired Bureau of Alcohol, Tobacco, Firearms and Explosives agent John Rotunno.

    Charles Giblin from the Center for the Advancement of Public Safety and Security stated, “Despite the good intentions … the ban will have unintended consequences. Cross-border smuggling will fill the gap of the prohibition.”

    Others highlighted the racist implications of the ban since more than 80 percent of African Americans who smoke prefer menthol cigarettes.

    “Bans do not work. During the war on drugs, more Black and Brown people went to jail than in all of slavery. About 90 percent of people targeted by stop-and-frisk were Black and Brown people,” according to John Dixon III, former police chief of Petersburg, Virginia, and former president of the National Organization of Black Law Enforcement Executives.

    “We are not promoting people to smoke,” but “we don’t want another situation like that of Eric Garner [Garner was killed by New York Police Department officers after they approached him on suspicion of selling single cigarettes],” said Charles Billups, founding member of the NCJP, retired law enforcement officer and chairperson of the New York State Grand Council of Guardians.

    Franklin expanded, “An illicit market is even more problematic for the Black community. Law enforcement will have no option other than to aggressively enforce smuggling and smoking bans … In an effort to identify smugglers, police will ‘creatively interact’ with citizens for minor crimes, like jaywalking, loitering, trespassing, traffic violations—using those crimes for leverage for information on their tobacco sources. This is the same tactic we use for locating guns and drugs.”

    The public has until Aug. 2 to submit a written comment via the FDA website.

  • Poda Completes Asset Sale to Altria

    Poda Completes Asset Sale to Altria

    Photo: Poda Holdings

    Poda Holdings has completed the sale of substantially all of the assets and properties used in the company’s business to Altria Client Services for a total purchase price of $100.5 million, subject to certain adjustments and holdbacks, pursuant to a definitive agreement dated May 13, 2022.

    Pursuant to the Asset Purchase Agreement, Poda will change its name to Idle Lifestyle and its trading symbol to IDLE.X. The company expects to trade as an inactive issuer under the policies of the Canadian Stock Exchange.

    “The completion of this sale represents the culmination of a tremendous amount of effort from the entire Poda team, and I am extremely proud of what we have accomplished,” said Poda Director, CEO and Chairman Ryan Selby in a statement.

    I believe this transaction provides maximum value for the company and its shareholders, and I know our innovative technology is now in good hands with Altria.”