Author: Taco Tuinstra

  • Geek Bar Launches Shisha Vapes

    Geek Bar Launches Shisha Vapes

    Photo: Geek Bar

    Geek Bar is launching its first range of shisha vapes, which will be widely available across the U.K.

    The Geek Bar shisha vape includes 575 puffs and uses the same battery technology as previous Geek Bar products. The range, which comes with 2 ml e-liquid capacity and contains 20 mg/ml nicotine to comply with U.K. regulations, is available in a number of flavors, including Watermelon Berries Shisha, Hawaii Sunshine Shisha and Pineapple Guava Shisha.

    The fruit flavored range is designed to help adult smokers quit conventional cigarettes. A study conducted by Nicotine & Tobacco Research last year highlighted that vaping sweet flavors associated with fruits were more likely to help an adult smoker give up their habit than use of tobacco flavored e-liquid, according to Geek Bar.

    “Shisha pipes have become increasingly popular in the U.K., and we wanted to give those who smoke them a safer option just like we do for conventional cigarette users with a range of disposable vape products which have been a phenomenal success in the U.K.,” said Geek Bar CEO Allen Yang.

    “Due to the popularity of Geek Bar in the U.K., we’re delighted to add this new shisha range to our product offering. We are plugging an important gap in the market which will support improved public health in the U.K.”

    The new shisha range will use Geek Bar’s new packaging which will allow both retailers and consumers to check the authenticity of the product from a compliance perspective as well as make it clear that the product is for sale to only over 18-year-olds.

  • Malaysians Skeptical About Generational Tobacco Ban

    Malaysians Skeptical About Generational Tobacco Ban

    Photo: tktktk

    Malaysians are skeptical about the effectiveness of a plan to prohibit the sale of tobacco and vapor products to those born after 2005, according to a survey by the Retail and Trade Brand Advocacy (RTBA) Malaysia Chapter that was relayed the New Straits Times.

    In January, Malaysia’s health minister, Khairy Jamaluddin, said he wanted to ban smoking for the next generation of Malaysians, following the example of New Zealand, which announced a similar policy in December.

    Eighty-five percent of respondents to the RTBA survey said the ban would not work and would create a black market for cigarettes and vape products. They also said that the ban would be difficult to enforce and ultimately impact Malaysia’s legal and local businesses.

    “Banning is not a solution,” said RTBA Malaysia managing director Fazli Nordin. “For example, vape products containing nicotine are currently prohibited from being sold in the market. Yet there is consumer demand for vape products containing nicotine. Worst still is the tobacco black market, where Malaysia has the highest level of illegal cigarettes in the world, driven by the huge price gap between legal and illegal products.”

    Nearly 1,200 Malaysians participated in the survey by RTBA Malaysia, which is a non-governmental organization that safeguards businesses from criminal conduct.

    While Malaysia’s plans were inspired by New Zealand’s, they differ in that New Zealand does not plan a ban on vapor products, according to Fazli.

    “Instead, the country promotes vape as a less harmful alternative and encourages New Zealanders to make the switch from traditional cigarettes,” he said.

    A recent study revealed that encouraging smokers to switch to vape as a less harmful alternative would help Malaysia reduce the smoking population to 4 million by 2025.

    The report estimated that such a strategy would help the country to reduce its spending on treating smoking-related diseases by MYR1.3 billion ($310.21 million) in 2025.

     

  • RELX Registers its Clinical Research

    RELX Registers its Clinical Research

    Photo: RELX

    RELX has initiated China’s first clinical research on vaping safety. The company is studying the acute effects of traditional cigarettes and electronic cigarettes on the human respiratory system and cardiovascular system. This month, RELX registered its clinical research with the China Clinical Trial Registry, a primary registry in the World Health Organization Registry Network.

    In a press release, REXL took the opportunity to highlight its commitment to cross-disciplinary fundamental research into atomization mechanisms, so as to explore the long-term health effects of vaping.

    In March 2021, RELX conducted clinical research on the metabolism and kinetics of nicotine. In both clinical studies, RELX used the vaping devices made by its strategic partner Smoore.

    Moreover, in September 2021, RELX and Smoore took the lead in drafting two industry standards “General Technical Specifications for Electronic Atomization Devices” and “Safety Technical Specifications for E-liquid”, led by the Electronic Cigarette Industry Committee of China Electronic Chamber of Commerce.

    In October 2020, the National Natural Science Foundation of China approved a research program on vaping harm reduction jointly conducted by Smoore and Tongji University. Over the next few years, Smoore and Tongji University will continue to conduct a series of studies on the health effects of vaping.

    In January, Smoore launched the world’s thinnest ceramic coil vape pod solution—FEELM Air—in London. Compared with last generation, FEELM Air boasts an overall harm reduction performance improvement of 80 percent.

    On Dec. 2, 2021, China’s State Tobacco Monopoly Administration issued the draft rules governing e-cigarettes following the regulator’s release of the exposure draft of national standards of e-cigarettes on Nov. 30, 2021.

    As China’s national standards of e-cigarettes come into effective, RELX said it will continue to increase its R&D investment and examine the harm reduction of vaping via scientific substantiation.

  • KT&G’s Income Down on Weaker Exports

    KT&G’s Income Down on Weaker Exports

    Photo: KT&G

    KT&G’s net income declined 15.5 percent to KRW990 billion ($825,52 million) on weaker exports and other adverse developments, according to the company’s annual earnings release. Operating profit declined to KRW1.32 trillion from KRW1.47 trillion.

    Sales grew 3.4 percent to an all-time high of KRW5.23 trillion driven by growth of the company’s heat-not-burn and overseas cigarette businesses, which offset decreases in KT&G’s real estate and cigarette export units.

    In the fourth quarter of last year, KT&G’s bottom line plunged 63.7 percent on-year to KRW111.5 billion. Sales declined 2.3 percent to KRW1.2 trillion, with operating income tumbling 24.5 percent to KRW264.9 billion.

    The company said it sold 38.8 billion cigarettes in overseas markets last year, down 7.4 percent from the prior year, with domestic sales edging down 1.3 percent to 41.1 billion cigarettes.

    Despite the global spread of Covid-19, KT&G said it made forays into 20 new countries last year, with its overseas markets totaling 120 nations.

    The company voiced optimism that its exports will gradually rebound down the road once global supply chain bottlenecks ease.

  • PMI to Make IQOS in the U.S. After Import Ban

    PMI to Make IQOS in the U.S. After Import Ban

    Photo: Mariakray

    Philip Morris International plans to manufacture IQOS in the United States to get its tobacco-heating device back on that country’s store shelves, reports Bloomberg.

    The move follows an adverse ruling against the company and its U.S. partner, Altria Group, in a patent dispute with British American Tobacco.

    In September 2021, the International Trade Commission (ITC) upheld an initial determination from May 2021 that IQOS infringes on two patents owned by BAT subsidiary Reynolds American Inc. (RAI).

    The ITC instituted an import ban and issued a cease-and-desist order, barring Altria Group from importing PMI’s IQOS 2.4, IQOS 3, IQOS 3 Duo products into the U.S. By declining to intervene, the U.S. Trade Representative upheld the ITC finding in November, leaving PMI with the options to produce IQOS domestically or tweak the design.

    A design change, however, would require authorization from the U.S. Food and Drug Administration again.

    In an interview with Bloomberg, PMI CEO Jacek Olczak, said the company had planned to manufacture IQOS in the U.S. all along. “From the very beginning of us going to the FDA, we had in mind that IQOS would one day not only be sold in the U.S., but manufactured there, if you take into consideration the size of the market and the opportunity for IQOS,” he said. “It’s just happening sooner because of the ITC decision.”

    In July 2020, the FDA authorized PMI and Altria to market IQOS with certain modified-exposure claims, giving the company a leg up over its rivals.

    PMI has not specified where it will be manufacturing IQOS but said it plans to sell IQOS in the U.S. again in the first half of 2023.

  • Altria Lauded for Sustainable Supply Chain Management

    Altria Lauded for Sustainable Supply Chain Management

    Altria Group has been recognized as a member of CDP’s 2021 Supplier Engagement Leaderboard for climate change, highlighting Altria’s and its subsidiaries’ work in sustainable supply chain management. Its supplier engagement rating (SER) positions it in the top 8 percent of companies who disclosed to CDP’s full climate questionnaire.

    The SER provides a rating for how effectively companies are engaging their suppliers on climate change. CDP assesses performance on supplier engagement using a company’s response to selected questions on governance, targets, scope 3 emissions, and value chain engagement in the CDP climate change questionnaire.

    “We believe Altria’s and our subsidiaries’ strong, sustainable partnerships with our supplier base and trade partners are critical to our future success and the achievement of Altria’s Vision,” said Sal Mancuso, executive vice president, chief financial officer, in a statement. “We are committed to driving sustainability and diversity through the value chain and we welcome the opportunity to engage further with our suppliers on environmental sustainability as a CDP supply chain member.”

    Last year, Altria was recognized for a second consecutive year with a double ‘A’ rating for tackling climate change and protecting water security by CDP, a non-profit that runs a global disclosure system on managing environmental impact. CDP’s A List distinguishes companies for leadership on transparency and action on key environmental issues.

  • Pyxus Reports Third Quarter and Nine-Month Results

    Pyxus Reports Third Quarter and Nine-Month Results

    Photo: Freedomz

    Pyxus International reported sales and other operating revenues of $428.9 million for the three months ended Dec. 31, 2021, up 13 percent over those reported in the 2020 third quarter. Gross profit increased 4.3 percent to $65.2 million. As a share of sales, however, gross profit decreased to 15.2 percent.

    For the nine months ended Dec. 31, 2021, sales and other operating revenues increased 22.4 percent to $1.16 billion. Gross profit increased 35.2 percent to $159.4 million. As a percent of sales, gross profit increased to 13.8 percent for the nine months.

    “We are pleased that our leaf operations’ volume, revenue, and gross margin continued to improve on a year-to-date basis,” said Pyxus President and CEO Pieter Sikkel in a statement. “As of Dec. 31, 2021, more than 90 percent of the company’s inventory was committed to specific customers to meet near-term forecasted demand. In addition, our uncommitted inventory decreased compared to the prior year, is near the low end of our target range of between $50 million and $150 million, and is expected to remain near the low end of our targeted range through fiscal year-end.”

    Sikkel said Pyxus would remain proactive in its efforts to accelerate shipments delayed by Covid-related logistical challenges. However, the company expects these challenges to linger for the remainder of its fiscal year, which will delay shipments of committed inventory from the fourth quarter of fiscal 2022 into the first half of fiscal 2023.

    The company said it would maintain its focus on liquidity. To address upcoming maturities in its capital structure, Pyxus recently entered into a new $100 million ABL credit facility.

    Meanwhile, continued delays of enforcement activities in the e-liquids industry have resulted in lower than anticipated revenue and adjusted EBITDA through the third quarter, according to Sikkel. In November 2021, Pyxus disposed of interests in Humble Juice Co. in exchange for royalties on future revenues.

    In December 2021, Pyxus unveiled its environmental, social, and governance framework, demonstrating the company’s commitment to operating its business in a responsible manner.

    Earlier this week, the company completed the sale of its FIGR Norfolk assets, the final the final key step in the company’s strategic decision to exit its cash flow negative cannabinoid operations.

  • BAT Announces Preliminary Results

    BAT Announces Preliminary Results

    Photo: BAT

    British American Tobacco reported revenue of £25.68 billion ($34.87 billion) in 2021, down 0.4 percent from 2020. Revenue from “New Categories” jumped 42.4 percent to £2.05 billion. On an adjusted basis, revenues increased 6.9 percent while revenues from new categories were up by 50.9 percent. Profit from operations was up 2.7 percent to £10.23 billion or £11.15 billion (up 5.2 percent) on an adjusted basis.

    BAT CEO Jack Bowles described 2021 as a “pivotal year.” “We accelerated New Category revenue, with growth of over 50 percent and reached a total of 18.3 million consumers–up 4.8 million—of our non-combustible products,” he said in a statement.

    “Putting ESG at the heart of our strategy and corporate purpose is delivering sustainable growth, encouraging more consumers to transition to reduced risk products and reducing the health impact of our business. We are also on track to achieve our other ESG targets, including carbon neutrality from our operations by 2030.”

    The company is on track to deliver £5 billion of revenue from New Categories by 2025, said Bowles, adding that BAT is also developing opportunities beyond nicotine.

    Alongside its 2021 preliminary results, BAT also announced a program to buy back up to £2 billion of ordinary shares. The company said it may purchase up to 229,400,000 shares between Feb. 14 and Dec. 21, 2022.

  • PMI Reports Strong Fiscal 2021

    PMI Reports Strong Fiscal 2021

    Photo: PMI

    Philip Morris International reported net revenues of $31.41 billion in 2021, up 9.4 percent over those reported in 2020. The company’s operating income was $12.98 billion, compared with $11.67 billion in the previous year. The company’s net revenues were $246 million lower than they could have been due to a 2021 customs assessment in Saudi Arabia.

    For the fourth quarter of 2021, PMI reported net revenues of $8.1 billion, up 8.9 percent over those reported in the corresponding 2020 quarter. The company’s operating income was $2.95 billion in the fourth quarter, compared with $2.91 billion in the comparable period of the previous year.

    PMI shipped 624.88 billion cigarettes in 2021, down 0.6 percent from 2020. The volume of heated tobacco units was up 24.8 percent to 94.98 billion. In the fourth quarter of 2021, the company shipped 158.38 billion cigarettes and 25.4 billion heated tobacco units, up 2.4 percent and 17 percent, respectively, from the 2020 fourth quarter.

    “Our business delivered excellent performance in 2021, with strong underlying momentum driving total volume growth, high single-digit organic net revenue growth and double-digit adjusted diluted EPS growth against the pandemic-affected prior year,” said PMI CEO Jacek Olczak in a statement.

    “We were especially pleased by the reacceleration of our business in the fourth quarter to deliver better-than-expected results. This included a step-up in sequential IQOS user growth, as well as the outstanding initial performance of IQOS ILUMA. We also achieved essentially stable category share for cigarettes in the quarter, as our portfolio initiatives bore fruit and pandemic-linked restrictions receded in many markets.”

    “We enter 2022 with strong fundamentals, underpinned by IQOS, and exciting innovation to come across our broader smoke-free product portfolio. We are forecasting organic top-line growth of 4 percent to 6 percent and currency-neutral adjusted diluted EPS growth of 8 percent to 11 percent, which prudently incorporate the continuing uncertainty on full IQOS device availability and the pace of the ongoing pandemic recovery.”

  • Imperial Recognized for Climate Action

    Imperial Recognized for Climate Action

    Imperial Brands has won continued recognition as a global leader for its engagement with suppliers on strategies to combat climate change.

    The business has been included on the 2021 Supplier Engagement Leaderboard compiled by environmental nonprofit organization CDP.

    This is the third successive year that Imperial has been named a Supplier Engagement Leader.

    In December, Imperial maintained its position on CDP’s Climate ‘A List’ for its actions to cut emissions and mitigate climate risks.

    Companies responding to the full version of the CDP climate change questionnaire also receive a Supplier Engagement Rating (SER). The companies with the best SER are highlighted as Supplier Engagement Leaders—which this year are the top 8 percent of companies to have made disclosures.

    “We are pleased to once again be recognized by CDP, and we remain unrelenting in our focus on climate, in line with our commitment to reach net-zero global emissions by 2040,” said Imperial’s Global ESG Director Tony Dunnage in a statement.