Author: Taco Tuinstra

Zimbabwe Marketing Dates Announced

Photo: Taco Tuinstra
The Zimbabwe Tobacco Industry and Marketing Board (TIMB) has announced the opening dates for auction and contract floors for the 2022 season, according to ZBC News.
“The TIMB wishes to inform all stakeholders that the 2022 tobacco marketing season kicks off on the 30th of March 2022 for auction floors and Thursday, the 31st of March for contract floors,” said Chelisani Moyo, spokesperson for the TIMB.
“We registered 122,000 farmers for this season compared to 145,000 last season, mainly due to the fact that TIMB has come up with a framework to bring sanity in the industry to ensure that proper farmers are the ones who are registered,” he added.
The number of registered Class A buyers has increased to 33 from 28 in 2021.
Over the past two years, sales have been conducted under strict Covid-19 protocols, and the TIMB is currently conducting crop assessment with the parastatal set to issue the sales guidelines before the marketing season starts.
February 22, 2022
Cigarette Smuggling up Dramatically in Australia

Photo: Maxim
The Australian Border Force (ABF) has detected a significant increase in attempted illicit tobacco imports at the Australian border, according to the Border Security Report.
The ABF discovered 878.8 tons of undeclared loose-leaf tobacco and 712.7 million undeclared cigarette sticks between Jan. 1, 2021, and Dec. 31, 2021. This is a 45 percent increase compared to 2020.
The majority of the illicit tobacco is coming from the Middle East and Asian regions. Illicit imports are either held for further investigation or incinerated.
“Our detection numbers show we are very alert to the different methods and patterns of concealment used in illicit tobacco importations at our borders,” said Susan Drennan, commander of the agency’s Trade and Travel Operations East division. “Our message to those who think they can import such large amounts of illicit tobacco and get away with it is to think again.”
Illicit tobacco imports that are linked to serious and organized crime syndicates are referred to the Illicit Tobacco Taskforce (ITTF). The ITTF combines the operational, investigative and intelligence capabilities of the ABF, the Australian Taxation Office, the Department of Home Affairs, the Australian Criminal Intelligence Commission, AUSTRAC and the Commonwealth Director of Public Prosecutions.
“Organized crime groups capitalize on unwitting smokers looking for cheap cigarettes to enrich themselves and to fund other types of criminal activities that harm our community,” said Greg Linsdell, commander of the ABF Special Investigations division. “The ABF is working tirelessly to stop this activity both at our border and within Australia through comprehensive and powerful ITTF investigative actions.”
February 22, 2022
Turning Point Brands Reflects on Strong 2021

Yavor Efremov (Photo: TPB)
Turning Point Brands (TPB) announced financial results for the fourth quarter and full year ended Dec. 31, 2021.
Net sales were comparable with the fourth quarter of 2020 at $105.3 million despite a 22 percent decline in sales of new-generation (“NewGen”) products.
Gross profit decreased 3.8 percent to $50.3 million compared to the fourth quarter of 2020. Net income decreased 20.3 percent to $11.5 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 7.6 percent to $23.8 million.
Full-year 2021 net sales increased 10 percent to $445.5 million. Gross profit increased 14.7 percent to $217.8 million. Net income increased 36.3 percent to $52.1 million. Adjusted EBITDA increased 19.8 percent to $108.1 million.
“Our fourth-quarter results capped off another strong year of performance for Turning Point Brands, with EBITDA growing 20 percent for the fiscal year. Sales for the fourth quarter finished above our previous guidance and in line with the previous year despite a 22 percent decline in NewGen sales, which fell within our previous guidance,” said TPB President and CEO Yavor Efremov, in a statement.
“Zig-Zag delivered another quarter of double-digit growth against a tough comparable period while Stoker’s reaccelerated to high single-digit growth driven by mid-teens growth in the moist snuff tobacco business. Additionally, NewGen managed through a challenging quarter clouded by the evolving regulatory landscape while maintaining long-term upside potential in a post-PMTA [premarket tobacco product application] environment.
“Turning to capital deployment, we increased our share repurchase activity during the quarter and continue to maintain a strong balance sheet. Going forward, I am eager about the opportunity to work with a great organization, continue our momentum and invest further to deliver future organic and inorganic growth.”
In related news, TPB entered into an agreement with Flamagas, a lighter manufacturer, for exclusive distribution of Clipper lighters in the United States and Canada.
“Given Flamagas’ global reach and renowned product portfolio, this partnership represents a tremendous opportunity to expand Clipper’s reach in the United States and Canada,” said TPB Senior Vice President ff Sales And Marketing Frank Vignone in a statement.
February 22, 2022
Dalli: ‘No Evidence for Snus Bribery Allegation’

Photo: Kirill Ryzhov
Former European Commissioner John Dalli, who stands accused of trading in influence and attempted bribery to help lift the EU ban on snus, said that no evidence was brought against him in two recent sittings, according to a report by the Malta Independent.
Dalli’s statement was in reaction to the decision on Friday by Magistrate Caroline Farrugia Frendo that enough evidence has been brought forward for him to stand trial.
Dalli has pleaded not guilty to the charges.
“Some media in Malta must have had a schadenfreude pleasure in reporting the decision of the court that there is a prima facie case against me and therefore the compilation is to continue,” Dalli said.
“Anyone following the case objectively would know that in two sittings, not one shred of evidence has been brought against me. It must be said that it was my choice not to move for the prima facie dismissal of the case. I want this hearing to go through the full process and have the opportunity to expose the machinations of the Commission and OLAF officials about this case. This should start during the next sitting. I hope that there will be no attempt to stop this through claims of immunity.”
The case dates from 2012, when Dalli’s aide Silvio Zammit allegedly tried to obtain a €60 million ($71.17 million) bribe from Swedish Match to reverse the EU ban on snus. The company rejected the offer as improper and reported it to the European Commission.
Zammit who was charged in December 2012 for trading influence and complicity in the request, passed away earlier this year.
February 22, 2022
‘Relapse Study Asks Wrong Question’

Photo: Valeri Vatel
A recent study suggesting that vaping doesn’t prevent smokers from relapsing to cigarettes is flawed because it asks the wrong question, according to Cameron English of the American Council on Science and Health.
For the study, “Effectiveness of E-Cigarettes as Aids for Smoking Cessation,” researchers analyzed data on 3,578 previous-year smokers who had recently attempted to quit and 1,323 recent former smokers from the Population Assessment of Tobacco and Health (PATH) Study between 2017–2019. Participants self-reported their use of e-cigarettes or other products to quit cigarettes. The researchers then investigated who among the study participants had abstained from smoking or any tobacco products in 2019. They concluded that sales increases in high-nicotine cigarettes in 2017 did not improve successful quitting or prevent relapse.
English contends that the significance of the study is limited because of the way it defines “relapse.” To determine how many smokers returned to cigarettes, the authors asked study participants whether they had smoked a cigarette in the past 12 months, “even one or two puffs/times.”
“Using this metric, an individual who has almost entirely quit smoking, save for ‘even one or two puffs’ of a cigarette, and someone who has gone back to smoking a pack a day would be counted as having relapsed,” English writes.
“This definition ignores the fact that many smokers gradually switch from combustible cigarettes to their electronic counterparts. This is known as ‘dual use,’ and properly designed epidemiological studies (even those based on PATH data) and clinical trials try to account for this behavioral shift, correctly noting that replacing even some cigarette smoking with vaping is desirable because vaping is the far safer option.”
Additional high-quality research would be helpful, but “preventing relapse” is an all but useless outcome, according to English. “Unless the researchers evaluate how e-cigarettes are used in the real world, the only thing their next paper will confirm is that asking the wrong question inevitably leads to the wrong answer, he writes.
February 22, 2022
Tobacco Commission Malawi Returns to Profit

Photo: Taco Tuinstra
The Tobacco Commission of Malawi posted a profit of MKW325 million ($404,374) in 2021, allowing the parastatal to recover from previous financial losses, reports The Nyasa Times.
In 2019–2020, the Tobacco Commission posted revenue of MKW3.6 billion but recorded a loss of MKW81 million.
Tobacco Commission spokesperson Telephorus Chigwenembe attributed the improvement to reforms implemented last year. “The improved performance has come about because of sound financial management measures that the institution put in place to avoid the loss that was recorded in 2020,” he told The Nyasa Times.
Between March 2021 and February 2022, the Tobacco Commission said it strengthened its regulatory framework, enhanced tobacco production and marketing integrity, improved stakeholder understanding of the commission’s mandate and roles, improved financial sustainability and bolstered “institutional capacity.”
The Tobacco Commission generates its revenues from statutory levies.
February 22, 2022
Smuggling Ring in Spain and Portugal Disrupted

Photo: Europol
Spanish and Portuguese law enforcement agencies have dismantled a criminal network involved in cross-border tobacco smuggling, according to Europol.
On Feb. 16, more than 100 officers simultaneously raided addresses on either side of the border, detaining eight suspects.
The officers seized 2 tons of cut tobacco and tobacco strips, more than 10,000 counterfeit cigarettes and tobacco cutting and drying equipment. They also recovered €37,800 ($42,778.46) in cash.
Property searches were carried out in the province of Sevilla (Spain) and in the cities of Coimbra, Lisbon, Leiria and Aveiro (Portugal).
The criminals are suspected of having illegally imported from Spain to Portugal large quantities of leaf tobacco and strips, destined to produce counterfeit cigarettes. This criminal network had tobacco storage and production facilities scattered across both countries.
Law enforcement believes these criminals have smuggled over 7 tons of tobacco products from Spain to Portugal in 2021 alone.
The revenue loss generated by this illegal activity is estimated at over €163,000 in Portugal.
February 21, 2022
Study: Nicotine Mandate Could Reduce Smoking

Photo: Pcess609
Requiring cigarette manufacturers to significantly reduce the nicotine content of their products could dramatically reduce smoking rates in New Zealand, reports Stuff, citing a new study published in The New Zealand Medical Journal.
In December, New Zealand unveiled an ambitious tobacco control plan that in addition to gradually raising the smoking age until it covers the entire population, includes a reduced nicotine mandate. New Zealand aims to reduce its smoking levels across to below 5 percent of the population by 2025.
Mandating about 95 percent less nicotine in cigarettes could have a “plausible chance” of achieving the Government’s Smokefree 2025 goals, wrote Professor Nick Wilson and colleagues from the Department of Public Health at the University of Otago, Wellington.
Wilson was relaxed about the anticipated uptick in vaping and illicit trade following such a mandate. Vaping is “substantially less harmful” than smoking and New Zealand’s remote location would offer some protection against cigarette smuggling, he noted.
Assuming a full ban on nicotine was implemented on March 1, 2023, Wilson and his colleagues predicted the smoking initiation among 18–24-year-olds would reduce by 75 percent due to the nonaddictive nature of the denicotinised tobacco. That would translate into an annual reduction of about 6,500 smokers.
Among older established smokers, the researchers assume that 33 percent would quit each year in 2023, 2024 and 2025.
Such a “relatively high rate” of quitting could be sustained because low nicotine tobacco is not addictive and the “growing denormalisation of smoking,” according to the researchers.
February 21, 2022
ITC Bars Unauthorized Juul-Compatible Pods

Photo: JHVEPhoto
The U.S. International Trade Commission (ITC) has issued a general exclusion order barring the importation of any unauthorized cartridges compatible with the Juul System that infringe Juul Labs patented product designs, including compatible flavored pods and refillable pods.
This ruling follows a filing by Juul Labs submitted to the ITC on July 10, 2020, that sought a general exclusion order directed at all importers of unauthorized cartridges that copy Juul Labs’ patented pod designs without authorization.
“Today’s ITC ruling represents a major victory against manufacturers of illicit vapor products who seek to bypass regulations and undermine efforts to create a more responsible marketplace for the category,” said Wayne Sobon, vice president, intellectual property at Juul Labs, in a statement.
“In addition to targeting the importation of all infringing products, regardless of the brand, this sweeping action will provide the additional public benefit of helping rid the market of unauthorized Juul-compatible products that can be modified by the user, such as empty and refillable pods.”
February 21, 2022
New Tobacco Restrictions in Mexico

Photo: Andrea Izzotti
Mexican President Andrés Manuel López Obrador has published a new tobacco control law that includes bans on tobacco advertising, promotion and sponsorship, alongside restrictions on public smoking.
Under the new law, the use of e-cigarettes and heated tobacco products will also be prohibited in indoor public places.
According to the Campaign for Tobacco-Free Kids (CTFK), about 30 percent of youth are exposed to secondhand smoke in hospitality venues in Mexico.
“Mexico’s comprehensive law is a victory not only for public health, but for the government champions and advocates in Mexico who worked tirelessly to ensure this life-saving measure was enacted,” wrote CFTK Director of Latin American Programs Patricia Sosa in a statement. “It is critical that the Mexican government ensure swift implementation of the new law so that all Mexicans can truly be protected from the deadly tactics of Big Tobacco companies.
February 21, 2022