Author: Taco Tuinstra

  • Coresta Announces its 2022 Congress

    Coresta Announces its 2022 Congress

    The 2022 Coresta Congress will take place online Oct. 10–28.

    The event will comprise daily, two-hour sessions or workshops (1 p.m. to 3 p.m. Central European Time) focused on a specific topic area with pre-recorded 10 minute to 12 minute oral presentations followed by a live Q&A with the presenters.

    Coresta’s Agronomy & Leaf Integrity and Phytopathology & Genetics study groups are soliciting the submission of papers relating to sustainability in tobacco leaf production, low nicotine, leaf chemistry, crop and environmental protection, genetics and plant breeding and supply chain integrity.

    The organization’s Smoke Science and Product Technology study groups are encouraging the submission of abstracts presenting scientific research related to conventional tobacco products and potentially reduced harm next-generation products such as e-cigarettes, heated-tobacco products and novel oral products containing tobacco-derived nicotine.

    The abstract submission deadline is May 20.

    For more information, visit www.coresta.org/events/coresta-congress-2022-35938.html.

  • BAT Prevails in Tanzania Distributor Dispute

    BAT Prevails in Tanzania Distributor Dispute

    Photo: somemeans

    British American Tobacco Kenya has prevailed in an eight-year legal battle against a distributor in Tanzania, sparing it from paying a TZS3.2 billion ($1.4 million) court award, reports The East African.

    The Tanzania Court of Appeal annulled a 2016 decision by a lower court awarding the money to Mohans Oysterbay Drinks as damages after it sued BAT Kenya over the termination of a cigarette supply contract.

    Mohans claimed it had the exclusive rights to sell BAT products in Tanzania, which the cigarette maker disputed.

    “In our view, there was no evidence to prove the existence of a distributorship agreement between the parties nor its breach,” said the appellant court.

    Mohans started importing and supplying BAT cigarettes in Tanzania in 2000. However, in 2014, BAT awarded an exclusive distribution contract to another firm after a review of the cigarette maker’s business model.

    Mohans challenged the decision in Tanzania’s high court, saying that BAT had unlawfully terminated a contract. BAT said there was no such contract.

    In September 2016, the high court held that an implied contract between the parties existed in their 14 years of engagement and awarded Mohans damages for loss of goodwill and money invested in the business.

    In overturning that ruling, the Court of Appeal ruled that the parties’ business relationship was “neither express nor implied agreement.”

    Further, the judges said the high court had erred in its decision given that Mohans had rebuffed an attempt by BAT to formalize the distributorship agreement.

  • U.K. Regulators Release E-Cig Pricing Guidance

    U.K. Regulators Release E-Cig Pricing Guidance

    Photo: kmitt

    The U.K. Committee of Advertising Practice (CAP) and the Medicines and Healthcare products Regulatory Agency (MHRA) have released an enforcement notice for promotional online pricing of e-cigarettes.

    According to the notice, CAP writes the advertising rules, which are enforced by the Advertising Standards Authority, the U.K.’s independent advertising regulator.

    The enforcement notice relates to the manner in which e-cigarette pricing appears on websites. According to CAP, companies are allowed to present factual information but not in a way that would constitute promotion. The enforcement notice states that some companies are portraying pricing in ways that would be considered promotion, for example, emphasizing discounts and savings.

    “Please take immediate action to ensure your advertising complies,” the notice states. “We will be monitoring websites in the coming months. If we see continued problems in this area, we will take targeted enforcement action to ensure a level playing field. This may include—where advertisers are unwilling to comply—referral to our legal backstop.”

  • Science Council Lists ‘Junk Science’ Studies

    Science Council Lists ‘Junk Science’ Studies

    Photo: luckybusiness

    The American Council on Science and Health (ACSH) has published a list of vaping-related studies that are tainted by “junk science,” according to the industry advocacy organization.

    “The media reports the results of sloppy vaping research then quickly forgets them. We do not,” writes Cameron English on the ACSH website. “What follows is a list of many of the low-quality studies that have investigated the alleged health risks of e-cigarette use. We’ll regularly update this catalog of bad studies as necessary.”

    The list includes studies linking vaping to erectile disfunction, stroke, bone damage and mental health.

    “The past year has seen the publication of many studies alleging that e-cigarette use (vaping) carries very serious health consequences, everything from depression to erectile dysfunction and higher stroke risk,” English writes. “Each paper generated widespread media coverage, usually one news outlet duplicating the uncritical coverage of the last, giving consumers the false impression that vaping poses a greater health threat than it actually does. When we examined these studies in more detail, we identified their serious flaws and reported them to our readers.”

    English also suggests that health reporters tend to obsess over a topic for a few days then forget it entirely, quickly moving on to the next exaggerated study. This means the public often only hears the information relayed from the faulty study and is never informed that the information isn’t sound, he says.

  • Ruling Could Impact EU Smoke Measurement

    Ruling Could Impact EU Smoke Measurement

    Photo: Amir

    A ruling by the European Court of Justice (ECJ) could impact the way in which the tar, nicotine and other chemicals emitted by cigarettes are measured, according to a report by DutchNews.

    In 2018, Dutch antismoking groups asked judges in Rotterdam to ban the existing EU ISO test because it provides inaccurate information about what smokers are actually inhaling.

    Tests by a Dutch public health institute showed that when the tiny ventilation holes in cigarette filters are covered—as smokers tend to do with their fingers when holding cigarettes—tar, nicotine and carbon monoxide levels exceed the official EU limits.

    The official EU ISO test, however, leaves the ventilation holes uncovered, leading to lower readings.

    The Rotterdam court referred the case to the ECJ to establish whether the test was valid and binding. While confirming that test was valid, the court on Feb. 22 noted it was not binding on the public because the method had not been published in the Official Journal of the European Union, where the trade bloc publishes its legal acts.

    Dutch attorney Phon van den Biesen said the ECJ had effectively thrown out the ISO method and instructed the Dutch court to review the antismoking group’s request on the basis of a measuring system the better reflects the deliveries.

  • SWM Reports Full-Year and Quarterly Results

    SWM Reports Full-Year and Quarterly Results

    Photo: SWM

    Schweitzer-Mauduit International reported sales of $1.44 billion in 2021, up 4 percent on an organic basis. GAAP operating profit was $83.3 million, down $45.5 million, and included $38.9 million of transaction and integration costs and incremental purchase accounting expenses from the Scapa acquisition that closed on April 15, 2021. Adjusted operating profit was $158.8 million, down $12.8 million.

    The company’s engineered papers business recorded sales of $509.3 million for the year, down 4 percent, driven by a 2 percent volume decline and unfavorable price/mix of 4 percent, which were partially offset by a 3 percent currency benefit related to the euro. 

    The volume decline was primarily attributable to lower tobacco paper volumes, particularly low-ignition propensity (LIP) papers, as customers adjusted inventories lower after building significant safety stocks in mid-2020. The lower LIP volume was also a significant contributor to the negative mix effect. Rapid growth throughout the year in heat-not-burn sales was a positive offset within the tobacco business, while nontobacco paper volumes also increased.

    In the fourth quarter of 2021, the engineered papers segment business reported sales of $134.8 million, up 3 percent, driven by a 5 percent volume increase, unfavorable price/mix of 1 percent and 1 percent of negative currency related to the euro. Volumes benefited from gains in tobacco papers, continued rapid growth in heat-not-burn products, and an increase in nontobacco papers.

    “We enter 2022 confident that we will deliver strong growth in sales and profitability, said SWM CEO Jeff Kramer in a statement. “2021 top line performance met our growth expectations, but profits were impacted by sharp input cost increases and supply chain challenges, which we expect to moderate as this year progresses.

    “Early signs show more positive fundamentals on several fronts. We have successfully increased prices across the business and see moderation on some key input costs while we continue to progress against other supply chain hurdles.”

  • Celeste Mastin Joins HB Fuller as COO

    Celeste Mastin Joins HB Fuller as COO

    Celeste Martin

    Celeste Mastin will join H.B. Fuller as executive vice president and chief operating officer on March 7, 2022. Mastin will assume the executive leadership role most recently held by Ted Clark, who is moving into a strategic advisory role.

    Mastin joins H.B. Fuller with more than 30 years’ experience in manufacturing and distribution with a successful track record of guiding companies’ growth through innovation, service improvement, global expansion, and acquisition.

    Most recently, she served as CEO of PetroChoice Lubrication Solutions, the largest distributor of petroleum lubrication solutions in the United States. Prior to that, she held CEO roles at Distribution International and MMI Products, and she served in executive leadership roles at Ferro Corp. and Bostik Adhesives, now owned by Arkema.

    Mastin began her career at Shell Chemical Co. She currently serves on the board of directors of Granite Construction.

    “We are delighted to welcome Celeste to H.B. Fuller. She is an exceptional commercial leader with a proven track record of success in highly complex, international businesses,” said H.B. Fuller President and CEO Jim Owens in a statement.

    “Celeste brings a wealth of global, executive leadership and an understanding of the adhesives industry that will provide accelerated growth and performance for H.B. Fuller. I am confident Celeste will successfully build upon Ted Clark’s success and, together with our executive committee, drive our company’s continued growth and profitability.”

  • EU Bill: Firms Liable for Supply Chain Violations

    EU Bill: Firms Liable for Supply Chain Violations

    Photo: weyo

    The European Commission has proposed a law that would hold large companies operating in the European Union for environmental violations or human rights abuses committed by businesses in their supply chains, reports The New York Times.

    “This proposal is a real game-changer in the way companies operate their business activities throughout their global supply chain,” said Didier Reynders, Commissioner for Justice, in a statement. “With these rules, we want to stand up for human rights and lead the green transition. We can no longer turn a blind eye on what happens down our value chains.”

    Under the legislation, businesses would need to establish mechanisms to detect, prevent and mitigate breaches of human rights, such as child labor, as well as environmental hazards in their supply chains. National governments would define the financial penalties for violators.

    Victims could sue for compensation in domestic courts of EU member nations, even if the harm occurred outside the bloc.

    According to the European Commission, the new rules will bring legal certainty and a level playing field. “For consumers and investors they will provide more transparency,” the Commission wrote on its website. “The new EU rules will advance the green transition and protect human rights in Europe and beyond.”

    The proposal would initially apply to companies with more than 500 employees and annual revenue over €150 million ($170 million). Around 2,000 companies based outside the bloc but doing business in the European Union, amounting to an annual revenue of more than €150 million, would also be covered.

    After two years, the range would be expanded to include smaller businesses in so-called high-impact sectors, such as textiles, food products and mining.

    The legislation will now be discussed by the European Parliament and the 27 national governments, with all parties able to modify the language. The final draft will require passage by the EU lawmakers and member nations. The whole process could take a year or more.

  • Cannabis Research Breakthrough

    Cannabis Research Breakthrough

    Photo: Elroi

    22nd Century Group and KeyGene say they have made a breakthrough in hemp/cannabis plant research leading to the successful transformation of the hemp/cannabis plant genome using a proprietary plant transformation and regeneration technology and clear protein expression by the introduced genes.

    “I cannot emphasize enough what an enormous achievement it is for our company to have cracked the code to show proof of genome transformation in the hemp/cannabis plant. This is the holy grail in plant science and places us in a commanding leadership position in the race to secure patents and other valuable intellectual property in the emerging hemp/cannabis genetics field,” said James A. Mish, CEO of 22nd Century Group, in a statement.

    “These newest plant transformation discoveries unlock additional revenue opportunities for the company and accelerate our efforts to create new hemp/cannabis plant lines with much higher commercial value at accelerated rates, lower cost and lower risk to our customers.”

    The plant transformation breakthrough unlocked by 22nd Century and KeyGene enables the desired DNA sequences to be inserted directly into or created from a plant’s existing genetic material, creating a more expedient and focused methodology to achieve the desired outcome.

    In addition to its transformation capability, 22nd Century Group has exclusive access to a battery of gene-editing capabilities, based on meganuclease technology, directed to seven of the key enzymes for the biosynthesis of cannabinoids plus four patent families that cover vital enzymes. Unlike other more widely available gene-editing technologies like CRISPR-CAS-9, this technology is allowed for use in cannabis.

    The breakthrough gene-editing and transformation technology will allow 22nd Century Group to target specific hemp/cannabis biosynthesis pathways and expand the ability to engineer the modification of cannabinoids in plants.

  • First FDA Warning for Vapor Hardware

    First FDA Warning for Vapor Hardware

    Photo: Sigelei

    The U.S. Food and Drug Administration posted its first warning letter for vaping hardware products on Tuesday. The letter was issued on Feb. 14.

    “Our review of the website http://sigelei.com revealed that you manufacture and offer for sale or distribution to customers in the United States ENDS [electronic nicotine-delivery system] products without a marketing authorization order including: Sigelei Humvee 80 and Sigelei 213 Fog Coil,” the agency wrote in its letter.

     On Feb. 5, 2021, the FDA sent Sigelei a “refuse to accept” letter regarding its premarket tobacco product application (PMTA) for six products. “New tobacco products that do not have the required FDA marketing authorization order in effect, including your ENDS products covered by PMTA STN PM0001221 that resulted in a refuse to accept determination, are adulterated and misbranded,” the agency warned.

    The move signals a shift in the FDA’s typical regulatory action against companies selling illegal vaping products. Thus far, the agency has issued letters for e-liquids, but now hardware manufacturers have been put on notice. One manufacturer, who asked to remain anonymous to avoid FDA scrutiny, said the recent action is worrisome.

    “The hardware segment has been operating almost at a near-normal, the same as before PMTAs were due,” the manufacturer said. “It hasn’t really hit home yet that FDA has the full intention to start enforcing hardware regulations too. This is going to hurt several companies, and we are going to start to see smaller businesses end their marketing in the U.S.”

    The letter also suggests that the warning is for all Sigelei products and not just the rejected PMTA products. “The violations discussed in this letter do not necessarily constitute an exhaustive list,” the letter states.