Author: Taco Tuinstra

  • Zimbabwe Sales Volumes Down

    Zimbabwe Sales Volumes Down

    Photo: Taco Tuinstra

    Zimbabwean farmers have sold 102.3 million kilograms of tobacco worth $305.2 million to date—17 percent less than in the comparable period last year, according to the Tobacco Industry and Marketing Board.

    Of the tobacco sold to date, 95.3 million kg were sold through the contract system while the rest was traded at auctions.

    The average price thus far has been $2.98 per kg, up 10.53 percent from last year’s price of $2.70 per kg.

    The tobacco being sold this year was grown under challenging weather conditions, characterized by late and erratic rains.

    Industry officials expect the country’s farmers to harvest 210 million kg of tobacco this year, down from 250 million kg harvested in 2021.

  • Feelm Unveils Ceramic Coil Disposable Pod

    Feelm Unveils Ceramic Coil Disposable Pod

    Photo” Smoore

    Smoore showcased the Feelm Max, a pioneering ceramic coil disposable pod solution, at Vaper Expo UK 2022

    Most existing disposable vapes are equipped with cotton coil, which produces relatively large aerosol particles, leading to inefficient deposition of inhaled particles in the lungs, hence low nicotine delivery and satisfaction, as well as harshness in throat. Soft cotton coils are also associated with leakage and burnt taste, according to Smoore.

    Equipped with a cotton-free, microporous ceramic coil, the Feelm Max delivers more reliable and efficient atomization, Smoore explained in a press note. At the same liquid volume, it offers 25 percent more puffs than traditional cotton coil disposable vapes. Because the ceramic coil generates smaller vaporized particles, the product leaves less residue in the throat, ensuring a smoother vaping experience. The ceramic coil also guarantees constant vapor production, delivering flavor consistence of more than 95 percent.

    According to Smoore, the Feelm Max has a leakage rate of less than 0.03 percent. It also generates smaller vaporized particles, ensuring efficient lung delivery, along with greater and faster satisfaction.

    At Vaper Expo UK 2022, Feelm also showcased its eco-friendly non-nicotine disposable e-cigarette and anti-dust mouthpiece hygienic e-cigarette. Both were recently awarded Red Dot Awards for their green product concepts and avant-garde design. Unlike traditional disposable e-cigarettes made of plastic, the external structure of the eco-friendly non-nicotine disposable e-cigarette is composed of recyclable and reusable paper and aluminum foil while anti-dust mouthpiece hygienic e-cigarette features a twist nozzle, similar to that used on lipsticks, to prevent the contact of mouthpiece with unclean substances.

    The market for disposable vaping products reached approximately $2.13 billion in 2021, accounting for 22.7 percent of all vaping device sales, according to Frost & Suvillian. The consulting firms expects the segment to expand at a compound annual growth rate of more than 28 percent between 2022 and 2026, making it the fastest-growing category among all vaping products.

  • New Papers On Tobacco Harm Reduction

    New Papers On Tobacco Harm Reduction

    Gerry Stimson (Photo: KAC)

    Knowledge Action Change (KAC) has launched the latest in a series of briefing papers as part of its Global State of Tobacco Harm Reduction project. Titled What is Tobacco Harm Reduction?, the publication provides a detailed introduction to the principles, history and evidence for this vital public health strategy.

    For the 1.1 billion people across the world who smoke combustible cigarettes, tobacco harm reduction is a potentially life-saving approach. Like other forms of harm reduction, it recognizes that simply quitting isn’t possible for all smokers. People smoke for the nicotine, but nicotine itself does not cause smoking-related death and disease—it’s the chemicals inhaled in tobacco smoke. Removing combustion reduces the risk. For those people who can’t or don’t want to quit nicotine, tobacco harm reduction offers a chance to switch to safer nicotine products including nicotine vapes, tobacco-free nicotine pouches, Swedish-style snus, many U.S. smokeless tobaccos and heated tobacco products.

    Many of these products have only been developed in the past 10-15 years, but they are proving increasingly popular. Research published in March by the GSTHR estimates there were 82 million vapers worldwide in 2021. This represents a 20 percent increase on the figure for 2020 (68 million), meaning safer nicotine products are now being used by 112 million people worldwide. A striking example of tobacco harm reduction’s potential can be found in Scandinavia. Sweden now has the lowest rate of tobacco-related disease in Europe, thanks to Swedish men switching from smoking to snus, and in Norway, 12 percent of women aged 16-24 use snus daily while only 1 percent smoke.

    In England, tobacco harm reduction can play a key role in the government’s bold ambition to make the country smoke-free (defined as a prevalence rate of under 5 percent of the population) by 2030, according to KAC. The uptake of vaping has been accompanied by a rapid decline in smoking. Vapes are the most popular way to stop smoking, with 3.6 million people vaping in Great Britain, of whom 2.4 million have completely quit combustible cigarettes. But tobacco is still the single largest cause of preventable mortality in England with nearly 75,000 smokers dying from smoking in 2019 and figures show nearly one in 10 pregnant women are smoking at the time of delivery.

    An end to smoking is possible—but the widest range of harm reduction products, from nicotine vapes and heated tobacco products to non-tobacco nicotine pouches and Swedish-style snus, should be available, accessible, appropriate and affordable to all.

    Gerry Stimson, director, KAC

    Continuing to drive down smoking rates is crucial if the U.K. government is to tackle the health disparities caused by smoking that currently see a disproportionate burden falling on the most disadvantaged families and communities. Smoking rates vary significantly across the country—for example in Blackpool about one in five people smoke (19.8 percent), compared to about one in 20 in Richmond upon Thames (6 percent). Rates are also very high among people who experience drug and alcohol problems (56 percent of those entering treatment smoke), people who are homeless (of whom 77 percent in England smoke) and people who live with mental health problems (of whom 26.8 percent in England smoke).

    But adopting tobacco harm reduction will not just help the U.K. counter the impacts of smoking, according to KAC. It has huge potential as a global public health solution. Smoking is responsible for 7.7 million deaths a year and current tobacco control measures are failing to reduce the death and disease caused by smoking fast enough.

    Translated into Spanish, Russian, Mandarin, French, Portuguese, Indonesian, Swahili, Japanese, German, Polish, Hindi and Arabic, this GSTHR briefing paper is intended to start conversations in countries across the world where harm reduction has yet to be recognized.

    “An end to smoking is possible—but the widest range of harm reduction products, from nicotine vapes and heated tobacco products to non-tobacco nicotine pouches and Swedish-style snus, should be available, accessible, appropriate and affordable to all,” said Gerry Stimson, director of KAC and emeritus professor at Imperial College London.

    “Strong government support is also needed to ensure access for marginal and vulnerable groups. The gains will be evident in the lives saved and the communities protected. Crucially, tobacco harm reduction is an extremely low cost yet effective strategy—a rare example of a health intervention that doesn’t require significant government expenditure, as consumers bear the cost. An end to smoking is possible—and tobacco harm reduction is the key.”

  • ITC Reports Strong Fiscal Year

    ITC Reports Strong Fiscal Year

    Photo: Wirestock

    ITC reported gross revenue of INR591.01 billion ($7.62 billion) for the fiscal year that ended March 31, 2022, up 22.7 percent over the previous fiscal year. The company’s earnings before interest, taxes, depreciation and amortization were up 22 percent, to INR189.34 billion, while profit before tax was INR198.3 billion, 15.5 percent more than in the previous year. Profit after tax was INR150.58 billion, compared with INR130.32 billion a year earlier.

    According to ITC, the operating environment during the year was marked by heightened uncertainty and volatility due to the Covid-19 pandemic, along with unprecedented inflationary headwinds. Geopolitical tensions towards the end of the year exacerbated the situation.

    “In spite of significant disruptions during the year, the company’s consumer-centricity, agility in seizing market opportunities, focus on execution excellence harnessing learnings from previous waves and proactive strategic interventions enabled it to post robust growth in revenues and profits, surpassing pre-pandemic levels,” ITC wrote in statement.

    After a challenging fiscal year 2020-2021, and despite repeated disruptions this year, ITC’s cigarette business progressively recovered on the back of improved mobility and easing of restrictions, surpassing pre-pandemic levels in the latter half of the year. According to ITC, the business effectively leveraged institutional strengths, digital technologies and learnings from previous waves to respond with agility across all nodes of operations. This included, reconfiguring and realigning supply chain operations to service market requirements through dynamic planning, strengthening direct reach in target markets across all traditional trade channels and augmenting the network to service rural and semi-urban markets efficiently.

    ITC says the cigarette business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments and enhancing product availability backed by superior on-ground execution.

    The company introduced several new brand variants to cater to continuously evolving consumer preferences. New launches during the fiscal year included Classic Connect, Gold Flake Neo SMART Filter, Wills Protech, Capstan Excel, American Club Smash, Gold Flake Kings Mixpod, Gold Flake Indie Mint, Wave Boss and Flake Nova.

    Meanwhile, ITC says it continues to modernize its manufacturing facilities by introducing contemporary technologies towards securing higher levels of productivity, product excellence and driving innovation. “New benchmarks were set in areas of quality, sustainability, supply chain responsiveness and productivity,” the company wrote in its financial release. “Cutting-edge technologies such as Industry 4.0 and Data Sciences were leveraged to build a smart manufacturing environment of connected systems.”

  • Vapers Petition Lawmakers to Stop Swedish Flavor Ban

    Vapers Petition Lawmakers to Stop Swedish Flavor Ban

    WVA Director Michael Landl holds an open letter to the Swedish parliament about the benefits of vape flavors. (Photo: WVA)

    The global vaping advocacy group World Vapers Alliance (WVA) on May 24 delivered an open letter to the Swedish parliament urging policymakers to stop a pending ban on flavors

    A day later, the WVA marched in front of the Parliament with the slogan “Flavours help smokers quit” and urged lawmakers to vote against the ban.

    Earlier this year, the Swedish government introduced a bill that would prohibit all non-tobacco vape flavors in nicotine and non-nicotine products. If approved, the bill is set to enter into force on Jan. 1, 2023.

    “I benefited firsthand from vaping and managed to stay smokefree for the last few years,” said Michael Landl, director of the WVA, in a statement. “Like most other smokers, I tried to find a way out of cigarettes—but nothing worked for me—the patches, the gums, the inhalers. Vaping—and especially combined with flavors—was my savior. And like me there are millions around the world who are healthier and lead a better life because of vaping.”

    According to Landl, the ban on vape flavors will have disastrous consequences on public health:

    “According to Yale School of Public Health, vaping flavored e-cigarettes are associated with a 230 percent increase in the odds of adult smoking cessation,” he said. “If vape flavors were banned, more than 150.000 swedes could be pushed back to smoking, which goes against any public health authority.”

  • Hong Kong Smoking Drops to Single Digits

    Hong Kong Smoking Drops to Single Digits

    Photo: sezerozger

    Hong Kong’s smoking rate dropped to 9.5 percent in 2021, for the first time hitting single-digits, reports The Standard, citing a survey by the city’s Census and Statistics Department. In 2019, 10.2 percent of Hong Kong’s population smoked.

    The survey results showed that there were some 581,500 daily conventional cigarette smokers in 2021, accounting for 9.5 percent of all persons aged 15 and over in Hong Kong.

    The survey also found daily conventional cigarette smokers consumed on average about 13 sticks of conventional cigarettes a day, the same as that in 2019.

    Despite the drop in overall tobacco use, the number of people using e-cigarettes surged from 7,200 in 2019 to 17,500 last year.

    The number of people using alternative smoking products is likely to decrease in the wake of Hong Kong’s ban on the import, manufacturing, sale and distribution of electronic cigarettes and heated tobacco items, which took effect April 30.

    Health secretary Sophia Chan Siu-chee said that Hong Kong aims to lower the smoking rate to 7.8 percent by 2025. To achieve this, the government is considering expanding statutory nonsmoking areas, reducing the overall attractiveness of tobacco products and preventing young people from developing smoking habits.

  • French Customs Seize 40 Tons of Counterfeits

    French Customs Seize 40 Tons of Counterfeits

    Photo: Europol

    French Customs arrested two suspected members of a criminal gang and seized 40 tons of counterfeit cigarettes in the Marseille and Paris regions.

    The criminal activities were conducted by an international criminal organization operating from Asia, according to Europol. The criminal group shipped counterfeit cigarettes by container from the Caribbean, the Middle East and Africa, impersonating the names of legitimate importers.

    The commercialization of these cigarettes in France would have represented a tax loss of around €15 million ($16.06 million). The volume of cigarettes confiscated during this operation represents the equivalent of approximately 10 percent of the total seizures made by French Customs in 2021.

    Europol facilitated the information exchange and provided specialized analytical support. On the action day, Europol deployed an expert to France to cross-check operational information against Europol’s databases in real-time and to provide leads to investigators in the field.

    In 2020, Europol created the European Financial and Economic Crime Centre to increase synergies between economic and financial investigations and to strengthen its ability to support law enforcement authorities in effectively combating this major criminal threat.

  • Steep Rise in Brazilian Tobacco Prices

    Steep Rise in Brazilian Tobacco Prices

    Photo: Taco Tuinstra

    Tobacco buyers have been paying 43 percent more for flue-cured Virginia leaf and 35 percent more for burley leaf in Brazil, reports Kohltrade, citing a partial marketing survey carried out by Afubra, a tobacco growers association.

    During a May 4 meeting of the Rio Grande do Sul Tobacco Sector Chamber, Afubra President Benício Albano Werner said famers have been receiving an average of BRL15.09 ($3.16) per kg for their flue-cured tobacco and an average of BRL13.48 for their burley this year, compared with BRL10.54 and BRL13.48, respectively around the same time in 2021.

    Industry sources note strong competition to purchase the remaining stocks of green tobacco from farmers. By the end of April, the cigarette tobacco-producing states of Rio Grande do Sul, Santa Catarina and Parana has sold 73 percent of their Virginia tobacco, 93 percent of their Burley leaf and 92 percent of their Comum tobacco to leaf merchants.

    The price increases are attributed to the rising cost of energy, fertilizers and labor, among other factors.

  • Kazakhstan to Raise Excise on Tobacco

    Kazakhstan to Raise Excise on Tobacco

    Kazakhstan will increase excise taxes on cigarettes and heated-tobacco products next year, reports Kazinform, citing the country’s national economy minister, Alibek Kuantyrov.

    During a session of the Majilis, Kazakhstan’s Lower House of Parliament, Kuantyrov announced that by 2024, cigarette excise taxes should be no lower than €28 ($29.94). 

    It was also suggested to raise excise taxes on other tobacco products, such as heated-tobacco, to harmonize tobacco product excise within the Eurasian Economic Union. According to the minister, this will require a staged increase in duties. 

  • Universal Reports Flat 2022 Results

    Universal Reports Flat 2022 Results

    Photo: Universal Corp.

    Universal Corp. reported sales and other operating revenue of $2.1 billion for fiscal 2022 compared with sales and other operating revenue of $1.98 billion in fiscal 2021. Reported operating income was $160.3 million, up 8 percent over that reported in 2021. The company’s tobacco operations contributed sales and other operating revenues of $1.84 billion in fiscal 2022, down slightly from the previous year.

    “I am proud of our fiscal year 2022 results, which were generally comparable to those in fiscal year 2021,” said George C. Freeman III, chairman, president and CEO of Universal Corp., in a statement. “During fiscal year 2022, we continued to face a very challenging logistical environment in many of our key tobacco regions. Strong performance from our Ingredients Operations segment offset some challenges that reduced results in our Tobacco Operations segment.

    “Our plant-based ingredients platform is coming together nicely and is exceeding our expectations. With the acquisition of Shank’s Extracts, we are now positioned to offer our customers a broad range of products, from fruit and vegetable juices, concentrates and dehydrated ingredients to botanical extracts and flavorings. In fiscal year 2022, the Ingredients Operations segment saw increased demand for organic-based products and continued strong volumes for human and pet food categories as well as for vanilla extracts.

    We continue to see opportunities to increase market share and expand the supply chain services we provide our customers.

    George C. Freeman III, chairman, president and CEO, Universal Corp.

    “Ongoing shipping constraints reduced our Tobacco Operations segment results for the year and quarter ended March 31, 2022, as a result of continued limitations in worldwide shipping availability stemming from the Covid-19 pandemic. Due to the logistical constraints in fiscal year 2021, we had carryover tobacco volumes, which shipped in fiscal year 2022. Similar logistical constraints impacted fiscal year 2022, which led to an even larger amount of tobacco volumes, reflecting a difference of about $70 million in revenue, which did not ship in fiscal year 2022, compared to the carryover volumes from fiscal year 2021. Tobacco shipment volumes in fiscal year 2022 were also reduced due to smaller African burley crops.

    “We experienced volatile tobacco and currency markets in Brazil during the fourth quarter of fiscal year 2022. Appreciation of the Brazilian currency coupled with strong demand for leaf tobacco led to unprecedented increases in green prices for leaf tobacco and earlier purchasing of the 2022 Brazilian crop, resulting in disruptions to market dynamics. To fulfill our customers’ orders, leaf tobacco purchases from our contracted farmers this season have been at the prevailing inflated market price for all leaf tobacco regardless of the quality of leaf tobacco. This resulted in larger inventory write downs in the quarter ended March 31, 2022, compared to the prior year’s fourth quarter.

    “As we move into fiscal year 2023, we are seeing strong demand for our plant-based ingredients and tobacco products. We believe leaf tobacco supply for flue-cured, burley, dark air-cured and oriental tobaccos to be in an undersupply position. At the same time, we continue to see opportunities to increase market share and expand the supply chain services we provide our customers. We expect continued logistical constraints as well as higher costs, particularly freight, raw materials, labor, fertilizer and energy, in both our tobacco and ingredients businesses. We are actively working to mitigate these challenges, and I am confident that we can deliver another good ye