Author: Taco Tuinstra

  • Indonesia Keeps Tax Rates

    Indonesia Keeps Tax Rates

    Photo: Taco Tuinstra

    Indonesia will maintain excise tax rates for tobacco products at their current levels next year, reports The Star.

    According to a finance ministry official, the country will consider other policies, including changes in retail prices, to discourage smoking.

    “We won’t adjust the rates next year, but we will look for other alternative policies, including adjustment in retail prices,” said Askolani, director general of customs and excise at the finance ministry.

    Indonesia raised excise tax rates for tobacco products by an average of 10 percent each year in 2023 and 2024 in an effort to control cigarette consumption.

    According to a health ministry survey in 2023, Indonesia had 70 million smokers among its 280 million people. It said 7.8 percent of smokers were between the ages of 10 to 18.

  • KT&G Releases Lil Solid 3.0

    KT&G Releases Lil Solid 3.0

    Image: KT&G

    KT&G has released Lil Solid 3.0 in South Korea, reports Maeil Business Newspaper.

    The new product is an upgrade to Reel Solid 2.0, which debuted in 2020. Lil Solid 3.0 offers two new usage settings that provide a differentiated sense of smoking. Boost mode delivers a rich haze volume and strong impact. Normal mode offers the same experience as Reel Solid 2.0.

    A “smart-on” function heats the device instantly when the stick is inserted. The fast charging allows the user to charge the device up to 50 percent of its capacity within 40 minutes.

    The recommended consumer price is KRW88,000 ($66).

    “Reel Solid 3.0 is expected to provide more satisfaction to consumers with upgraded user convenience and design,” said Lim Wang-seop, head of KT&G’s next-generation products business division. “We will continue to develop innovative products that can meet domestic and foreign consumer needs based on world-class brand competitiveness.”

  • Kaival to Merge With Delta Corp.

    Kaival to Merge With Delta Corp.

    Kaival Brands Innovations Group and Delta Corp. Holdings have entered into a merger and share exchange agreement whereby Kavial Brands and Delta will each become subsidiaries of a specially created holding company, Pubco.

    Incorporated under the laws of the Cayman Islands, Delta Corp. Holdings is a privately held company for global businesses engaged in bulk and energy logistics, fuel supply, commodities and asset management.

    Following closing of the transactions, which the parties expect will occur in the fourth quarter of 2024, the combined company would be traded on Nasdaq. The combined company will continue to operate under the Delta management team led by Mudit Paliwal, Peter Shaerf and Joseph Nelson.

    “This transaction marks an exciting new chapter for Kaival Brands,” said Kaival Brands interim-CEO Mark Thoenes in a statement.

    “Delta’s flexible, asset-light business model positions the combined company to capitalize on high growth areas within the energy and raw materials markets and offers our shareholders a unique opportunity. We are confident that this partnership will deliver substantial value to Kaival Brands’ shareholders and employees.”

  • Hungary: Heated Tobacco Displacing Combustibles

    Hungary: Heated Tobacco Displacing Combustibles

    Photo: Robson90

    Heated-tobacco products are gaining popularity at the expense of traditional cigarettes in Hungary, reports Trademagazin, citing the Regulatory Authority for Regulated Activities. According to the agency’s 2024 data, the trend will continue to strengthen.

    Compared to the early 2020s, Hungarians are buying 150–200 million fewer cigarettes each month on average, which means a significant drop on an annual basis. In the summer months of this year, demand increased as usual, but overall, fewer cigarettes are sold in Hungary every year.

    Monthly demand for finely cut consumer tobacco has decreased by between 20 percent and 25 percent from the 300 tons to 400 tons that Hungarians purchased per month in previous years.

    However, the illegal tobacco trade overshadows the official data, since in 2024 there has been a  significant increase in sales of tobacco on the tax-avoiding market, according to the regulatory authority.

  • Smugglers Caught Using Weather Balloons

    Smugglers Caught Using Weather Balloons

    Image: Bilal

    Polish border guards detained two people who had used weather balloons to smuggle cigarettes from Belarus, reports TVP World.

    The suspects had attempted to flee and were found with 1,500 packs of illegal cigarettes worth close to PLN24,500 (€6,377).

    On the same day, border guards in Nowy Dwor found another similar package containing illicit cigarettes worth over PLN23,000 along with the remains of a weather balloon fitted with a tracker.

    Additional balloons were found with packages of cigarettes valued at a combined PLN67,000.

    In the wake of enhanced security measures, including a steel barrier and thermal imaging, along the border between Poland and Belarus, cigarette smugglers have been looking for new ways to move contraband into the European Union.

  • Economist Event Canceled Over Tobacco Ties

    Economist Event Canceled Over Tobacco Ties

    Image: Nirmal

    The Economist Impact’s 10th annual world cancer series, which was scheduled to happen in Brussels at the end of the month, has been canceled over concerns with Economist Impact’s ties with the tobacco industry, reports The Guardian.

    Economist Impact is part of the Economist Group, which owns the weekly The Economist magazine.

    The cancer series boasted “shaping the cancer control agenda.” The event had attracted over 300 attendees and 80 speakers. However, after it came to light that the Economist Impact had ties to PMI and JTI, many speakers and attendees pulled out.

    “This decision stems from the fact that UICC [the Union for International Cancer Control] has learned that Economist Impact works with Philip Morris International and Japan Tobacco International,” the UICC said in a statement following its decision not to attend the event.

    “UICC has a longstanding policy of not engaging with the tobacco industry, in alignment with the World Health Organization Framework Convention on Tobacco Control. This policy reflects our commitment to public health and our dedication to reducing the global burden of cancer.”

    After participants began withdrawing from the event, Ian Hemming, managing director of Economist Impact events, announced cancellation of the conference.

    “We have noted the concerns of the cancer community about Economist Impact’s work sponsored by tobacco companies,” Hemming wrote in an email to participants. “We have a longstanding policy that we do not accept sponsorship from tobacco companies for Economist Impact’s healthcare-related work or events. We respect the choice made by some speakers and sponsors not to attend the summit.”

    “Due to these changes, we have canceled this year’s event,” said an Economist Group spokesperson.

  • Firstunion Technology Recognized in Dortmund

    Firstunion Technology Recognized in Dortmund

    Image: blacksalmon

    Firstunion’s Alkaid Light heating technology received an HNB innovation award on Sept. 19 at the InterTabac exhibition in Dortmund, Germany, according to a company press release relayed by Vaping360.

    That same evening, Firstunion hosted a launch event, showcasing how Alkaid technology addresses consumer concerns such as heating speed, flavor quality, device cleanliness, and health impacts.

    Alkaid light-heating method leverages full-spectrum light waves, mimicking the natural power of sunlight to deliver rapid and uniform heating. According to Firstunion’s Alkaid light-heating technical lead Zhu Bin, this enables the device to preheat in just five seconds, offering users instant satisfaction with a smooth, seamless draw.

    Firstunion claims the technology also delivers superior taste and health benefits that elevate the smoking experience beyond current standards. According to the manufacturer, Alkaid increases the nicotine release efficiency in aerosols by more than 40 percent and boosts total particulate matter by 20 percent, delivering an experience that closely mimics that offered by traditional cigarettes.

    Simultaneously, the technology cuts harmful substance emissions by 20 percent, according to Firstunion. Thanks to its innovative non-contact heating design, Alkaid requires no cleaning, ensuring the device delivers consistent, fresh-tasting flavor even after 5,000 continuous uses, according to the press note.

  • Trump Vows to Save Flavor

    Trump Vows to Save Flavor

    Photo: Alexander

    Former U.S. President Donald Trump said he will save flavored e-cigarettes if reelected, according to Newsmax.

    “I saved flavored vaping in 2019, and it greatly helped people get off smoking,” Trump wrote in a Sept. 20 post on his Truth Social account. “I raised the age to 21, keeping it away from the ‘kids.’ Kamala and Joe want everything banned, killing small businesses all over the country. I’ll save vaping again.”

    In his first term, Trump promised to crack down on sales of flavored products but then backtracked, saying vaping could help people stop smoking. Trump’s watered-down proposal banned the sale of all sweet-flavored and fruity-flavored vape pods and cartridges but allowed gas stations and convenience stores to continue selling menthol cartridges and vapes. It also allowed vape shops to sell a broad range of e-cigarette liquids in open-tank vaping systems.

    Free market advocates and small business vape shop owners and vape makers supported the new proposals while anti-tobacco advocates accused Trump of caving to pressure from the nicotine business.

    VTA’s meeting with President Trump represents a great day for small businesses across America who fear the Biden-Harris administration’s efforts to shut down small businesses and deprive adults who smoke of their flavored vaping products.

    The Vapor Technology Association (VTA) welcomed Trump’s latest comments.

    “Today, VTA had the opportunity to meet with President Donald J. Trump,” wrote VTA Executive Director Tony Abboud on Sept. 20. “We had a wide-ranging conversation, and we thanked President Trump for taking two bold and decisive actions in 2019: saving flavored vapes for adults and protecting youth by raising the age to 21.

    “Since then, youth vaping has dropped to an all-time low, and many adults have used flavored vaping to quit smoking. VTA’s meeting with President Trump represents a great day for small businesses across America who fear the Biden-Harris administration’s efforts to shut down small businesses and deprive adults who smoke of their flavored vaping products. We are pleased that former President Trump is continuing to fight for vapers.”

  • Illicit Cigarette Market Deflates in Ukraine

    Illicit Cigarette Market Deflates in Ukraine

    Photo: IvanSemenovych

    The share of illicit products in Ukraine’s tobacco market dropped to 14.6 percent in July, down from 19.1 percent at the start of the year, reports UNN, citing data from the “Monitoring of the illegal trade in tobacco products in Ukraine” study.

    According to Kantar Ukraine, the state misses out on an estimated UAH23 billion ($556.01 million) in tax income as a result of duty-avoiding tobacco. The volume of the illicit cigarette market in Ukraine is estimated at 6.65 billion units.

    Oleksandr Ruvin, director of the Kyiv Scientific Research Institute of Forensic Expertise, said that despite recent progress, efforts to combat the illicit cigarette trade were not as effective as they could be.

    “At one time, we had an idea to create a thematic register of manufacturers. The State Tax Service provided us with a list of companies licensed to sell tobacco products—more than 50 representatives. The companies were supposed to provide us with reference product samples. We received some of the information, but this work is not being used as effectively as it could be,” he was quoted as saying.

  • PMI to Record £220 Million Loss on Vectura Sale

    PMI to Record £220 Million Loss on Vectura Sale

    Image: Aliaksandr Marko

    Philip Morris International expects to record a record loss of about £220 million ($198 million) on the sale of its inhaled-therapeutics Vectura Group unit to Molex Asia Holdings in the third quarter, reports The Wall Street Journal, citing a securities filing.

    On Sept. 17, PMI’s pharmaceutical subsidiary, Vectura Fertin Pharma, announced it would sell its Vectura Group business to Molex. The company acquired Vectura Group in 2021 for $1.24 billion as part of PMI’s drive to diversify beyond nicotine.

    The company now says that “unwarranted opposition” to its transformation has affected Vectura Group’s engagement with the scientific community and its commercial relationships.

    The remaining units of Vectura Fertin Pharma will continue to operate under a new corporate identity and develop oral consumer health and wellness offerings as well as inhaled prescription products for pain management and cardiovascular emergencies.