Author: Taco Tuinstra

  • Decentralized Marketing Continues in Zimbabwe

    Decentralized Marketing Continues in Zimbabwe

    Photo: Taco Tuinstra

    The decentralized auctioning of tobacco is now a permanent feature of Zimbabwe’s tobacco marketing system, reports The Herald, citing the Tobacco Industry and Marketing Board (TIMB).

    Previously, tobacco sales were conducted exclusively in the capital, Harare, causing farmers to incur transportation cost and forcing them to spend days away from their fields. The centralized auction system dates from the time that Zimbabwe’s tobacco industry was dominated by commercial plantations with a limited number of large-scale growers.

    Following the land reform program of the early 2000s, Zimbabwean tobacco production is now characterized by small-scale production, with hundreds of thousands of participants each selling relatively small amounts of tobacco.

    Decentralized sales started in 2021, with floors opening in Marondera, Rusape and Karoi Mashonaland West, among other locations.

    TIMB CEO Meanwell Gudu said decentralization of sales would continue in 2022 because it brought convenience and reduced transport cost to farmers who sold their golden leaf at the nearest town.

    “The decentralization is very positive because it is in line with government policy on devolution,” he said.

    During the 2021-2022 summer cropping season, Zimbabwean farmers put just over 105,000 ha of land under tobacco, down from 106,494 ha last year.

    According to the TIMB, more than 121,000 farmers had registered to grow tobacco during the 2021-2022 season by Dec. 31, a decrease from the 144,462 growers who had signed up during the same period the previous year.

  • Crows Trained to Pick up Cigarette Butts

    Crows Trained to Pick up Cigarette Butts

    Photo: Eric Isselée

    A Swedish company is deploying crows to pick up discarded cigarette butts from the streets and squares of a town near Stockholm as part of a cost-cutting drive, reports The Guardian.

    The wild birds receive a little food for every butt that they deposit in a customized machine.

    Christian Günther-Hanssen, the founder of Corvid Cleaning, the company behind the method, estimates that his method could save at least 75 percent of the costs associated with picking up cigarette butts in the city.

    More than 1 billion cigarette butts are left on Sweden’s streets each year, representing 62 percent of all litter, according to The Keep Sweden Tidy Foundation says that. Södertälje spends SEK 20 million ($2.19 million) on street cleaning.

    Södertälje is carrying out a pilot project before potentially rolling out the operation across the city, with the health of the birds being the key consideration given the type of waste involved.

    New Caledonian crows, a member of the corvid family of birds, are as good at reasoning as a human seven-year-old, research has suggested, making them the smartest birds for the job.

    “They are easier to teach and there is also a higher chance of them learning from each other,” said Günther-Hanssen. “At the same time, there’s a lower risk of them mistakenly eating any rubbish.

    Tomas Thernström, a waste strategist at Södertälje municipality, said the potential of the pilot depended on financing.

    “It would be interesting to see if this could work in other environments as well. Also from the perspective that we can teach crows to pick up cigarette butts, but we can’t teach people not to throw them on the ground. That’s an interesting thought,” he said.

  • California Pushes to Ban Single-Use Filters

    California Pushes to Ban Single-Use Filters

    Photo: lienkie

    California lawmakers want to ban single-use cigarette filters, e-cigarettes and vape products in the state with the aim of benefiting the environment and public health, according to a story in The Los Angeles Times.

    Assembly Bill 1690 would authorize local prosecutors to levy a fine of $500 per violation, defined as the sale of one to 20 items.

    Supporters of the bill say cigarette filters offer no health benefits but cost the state millions of dollars to clean up and release toxic microplastics into the environment.

    Roughly 12 billion cigarettes are sold in California each year, 90 percent of which are filtered, according to San Diego State epidemiology and biostatistics professor Thomas Novotny.

    Nicholas Mallos, senior director of the Trash Free Seas Program at the Ocean Conservancy, said that in 2020 cigarette butts made up nearly 30 percent of the trash collected by volunteers on Coastal Cleanup Day. The city of Los Angeles alone incurs an estimated $19 million a year in cigarette filter clean-up costs. Public agencies statewide spend about $41 million a year.

    The bill also targets vape products, which contain batteries and fluids that damage the environment. Reusable and rechargeable vape products would still be available under AB 1690.

    Similar bills previously proposed have been unsuccessful due to “tobacco money,” according to proponents of the legislation. Assemblymember Mark Stone believes this time will be different due to a “growing awareness” of the issues and a “stronger coalition” of supporters.

    The bill does not include a target date for when the ban would take effect.

     

  • Flavor Ban Pushes Sales Next Door

    Flavor Ban Pushes Sales Next Door

    Photo: Borgwaldt Flavor

    Massachusetts’ ban of flavored tobacco products is not the success its proponents make it out to be, according to Ulrik Boesen of the Tax Foundation.

    While a study published in JAMA Internal Medicine found that the sale of flavored tobacco in Massachusetts decreased more than in 27 control states in the wake of the state ban, the authors failed to consider the impact of cross-border trade.

    According to Boesen, increased sales in neighboring New Hampshire and Rhode Island almost completely made up for the decrease in Massachusetts.

    “The end result of the ban, in fact, is that Massachusetts is stuck with the societal costs associated with consumption, while the revenue from taxing flavored tobacco products is being raised in neighboring states,” Boesen wrote on the Tax Foundation’s website.

    Looking at the New England region as a whole confirms that the flavor ban did not work as intended, according to Boesen. “Sales moved around rather than disappeared, and the ban evidently did not impact consumption,” he wrote. “Total sales for the region decreased by slightly more than 1 percent comparing the 12 months preceding the ban to the 12 months following the ban—largely comparable to the national sales trends.”

    As the U.S. Food and Drug Administration and other states consider Massachusetts’ example, Boesen urges lawmakers to think twice before banning flavored tobacco products. “The experience out of Massachusetts has not been a success story and other states should be wary of conducting their own expensive experiments,” he wrote.

  • Ulster Bans Smoking in Cars with Children

    Ulster Bans Smoking in Cars with Children

    Photo: Nenov Brothers

    Northern Ireland has banned smoking in a car with children, bringing its laws in line with other regions of the United Kingdom, reports the BBC.

    Violators face fines of up to £2,500 ($3,391), but police will be taking an educational, advisory and non-confrontational approach when enforcing the new legislation until the end of February 2022.

    It is already illegal to smoke on public transport or to smoke in work vehicles used by more than one person in Northern Ireland.

    Chief Inspector Graham Dodds said people caught smoking in cars with children would initially be given warnings rather than fines, giving time for public awareness of the offences to build.

    Health advocates welcomed the new laws as a “significant move to a tobacco-free Northern Ireland.” Naomi Thompson, from Cancer Focus NI, said the laws would protect children’s health and reduce the perception for children that smoking is normal behavior.

    A ban on smoking in vehicles carrying children has been in force in England and Wales since October 2015. In Scotland and the Republic of Ireland, a ban took effect in 2016.

    Northern Ireland also banned the sale of e-cigarettes and other nicotine inhaling products to anyone aged under 18.

  • Guns N’ Roses Guitarist Lauds Snus

    Guns N’ Roses Guitarist Lauds Snus

    Popular Guns N’ Roses guitarist Slash recently described snus as the “the best discovery in the world” when discussing his experience quitting combustible cigarettes.

    The Nordic rock station Rockklassiker interviewed Slash last month, and the musician responded to questions from fans, one of which was from Bengt Wiberg, founder of EUforsnus and creator of Sting Free AB and the sting free snus pouch.

    Wiberg asked Slash via social media, “Hi Slash, I think it is great that you quit smoking with the help of Swedish snus and love it! Do you support an end to the European Union snus ban, and do you support EUforsnus?”

    “I used to (use snus),” Slash replied. “I did it for years and years and years, and I finally quit a few years ago, but when I first quit smoking, which was in 2009, pretty soon after that I discovered snus, and it was like the best discovery in the world. My God, it’s the greatest! So I did it from probably 2009 until 2015 or something like that. I used to have General snus shipped in from Sweden.”

    Slash speaks further in the interview about his experience switching from combustible cigarettes to Swedish snus and eventually quitting nicotine completely in 2015. He visited Swedish Match’s flagship store in Stockholm while in town for a concert that year, where he stated that he received an “informative background on snus and how it’s made,” according to Snusforumet.

    Snus is currently banned in the EU with the exception of Sweden. Sweden has a 5 percent rate of daily smokers (close to the World Health Organization’s smoke-free goal), attributing the low number to the use of snus and tobacco-free modern oral nicotine pouches, such as Velo, Zyn and Loop.

    Slash did not specifically say whether he supports lifting the EU ban on snus, but Wiberg feels confident that Slash’s sentiments on snus speak for themselves.

  • Universal Corp. Reports ‘Solid’ Results

    Universal Corp. Reports ‘Solid’ Results

    George Freeman III (Photo: Universal Corp.)

    Universal Corp. reported net income of $60.8 million for the nine months ended Dec. 31, 2021, compared with $48 million for the nine months ended Dec. 31, 2020.

    Excluding restructuring and impairment costs and certain other non-recurring items, net income increased by $4.5 million. Operating income increased by $18.1 million to $103.2 million. Adjusted operating income was $116.5 million, compared to adjusted operating income of $107.6 million for the comparable period in 2020.

    Net income for the quarter ended Dec. 31, 2021, was $34.9 million, compared with $33.3 million for the quarter ended Dec. 31, 2020.

    Excluding restructuring and impairment costs and certain other non-recurring items, net income decreased by $9.7 million. Operating income increased by $2.6 million to $62.8 million. Adjusted operating income was $74.9 million, compared to adjusted operating income of $85.2 million for comparable 2020 quarter.

    “Our operations produced solid results in the nine months ended Dec. 31, 2021,” said Universal Corp. President and CEO George C. Freeman III in a statement. “We are especially pleased by the strong results from our Ingredients Operations segment. That segment is developing nicely and was bolstered by our acquisition of Shank’s Extracts Inc. on Oct. 4, 2021. Shank’s adds valuable capabilities to the segment, including flavors and extracts, custom packaging, bottling, and product development.

    “We continued to experience the impact of tobacco shipment timing on our results in the nine months and quarter ended Dec. 31, 2021.

    “Tobacco shipments through the nine months ended Dec. 31, 2021, were lower, compared to the same period in fiscal year 2021, in part due to elevated tobacco shipments in the third quarter of fiscal year 2021 related to earlier customer mandated shipment timing.

    “Logistical challenges due to continued limitations in worldwide shipping availability stemming from the ongoing Covid-19 pandemic also slowed tobacco shipments in the nine months ended Dec. 31, 2021. However, despite the shipment timing variations and logistical challenges, we believe that our tobacco business remains robust with strong customer demand, and our uncommitted tobacco inventory levels remain well within our target range.”

  • Philippines Losing Billions to Illicit Trade

    Philippines Losing Billions to Illicit Trade

    Photo: Piotr Pawinski

    The Philippine government has lost nearly PHP3 billion ($588.17 million) in tax revenues since 2019 due to smuggling or illegal entry of cigarettes into the country, reports Philstar.

    The Bureau of Customs (BOC) has intercepted 127,675 master cases of illicit cigarettes since the Tobacco Tax Law was approved in 2019, according to BOC Deputy Commissioner Teddy Raval.

    The estimated value of the seized cigarettes reached PHP9.73 billion, more than half of which was accounted for in 2020 at PHP5.77 billion. The government forfeited PHP2.9 billion in excise revenues between 2019 and January 2022 due to smuggling of cigarettes.

    “They took advantage of the mobility restrictions, including Customs restrictions, but you caught them,” said Albay Representative Joey Salceda in a House hearing, referring to smugglers attempts to take advantage of Covid-19 restrictions.

  • Court Stays Bidi Vapor Marketing Denial Order

    Court Stays Bidi Vapor Marketing Denial Order

    The U.S. Court of Appeals for the Eleventh Circuit has stayed the marketing denial order (MDO) issued by the U.S. Food and Drug Administration to Bidi Vapor in September 2021.

    The Feb. 1, 2022, ruling allows Bidi Vapor and Kaival Brands to market and sell all of its Bidi Stick electronic nicotine-delivery systems (ENDS), including its tobacco, menthol and flavored products, while Bidi Vapor continues with its merits lawsuit compelling the FDA to place Bidi Vapor’s premarket tobacco product application (PMTA) for the flavored ENDS back under scientific review.

    With the judicial stay decision going in favor of Bidi Vapor, the company expects many distribution partners to reestablish their previous sales volumes, with potentially new distribution chains added as well.

    “We expect this judicial stay will result in a rebounding of Bidi Stick sales,” said Niraj Patel, president and CEO of both Kaival Brands and Bidi Vapor, in a statement. “Many wholesale and retail partners had discontinued or slowed purchases of the Bidi Stick until we heard back from the courts on the likelihood of our merits case succeeding. This is what our wholesale and retail partners have been waiting for.”

    “We believe that Bidi Vapor has developed substantial, robust and reliable scientific evidence through, among other things, surveys, behavioral studies and clinical trials establishing support that the product is appropriate for the protection of the public health,” Patel said. “Following on FDA’s initial administrative stay of the MDO, we believe that this recent judicial stay is a good indication that the court finds some merit in Bidi Vapor’s arguments and puts Bidi Vapor’s PMTA one step closer to being properly and fully evaluated by FDA. We are extremely pleased with the court’s decision on this judicial stay order and continue to expect to be successful on the merits case as well.”

    “The company believes that this decision signals a new milestone in the path toward providing adult smokers 21 and older with a viable alternative to combustible cigarettes. Distributors, wholesalers, retailers and adult consumers are all anxious to see positive outcomes not just for Bidi Vapor, but for the vaping industry as a whole. We believe in science-based regulation of ENDS and hope the courts will require FDA to adhere to the law as it reviews Bidi Vapor’s PMTAs,” Patel said.

  • Jacinta Carter to Lead HR at Swisher

    Jacinta Carter to Lead HR at Swisher

    Jacinta Carter (Photo: Swisher)

    Swisher has hired Jacinta Carter as executive vice president, human resources, people and culture effective Jan. 31. In this new role, Carter will lead all aspects of Swisher’s human resources operations, with a priority focus on organizational alignment, building strong pipelines for future hiring needs, promoting inclusion and opportunity in the workplace, and designing and evaluating career paths to meet the company’s business growth goals.

    Carter will have a vital role in shaping the organization and in transforming the culture necessary to achieve Swisher’s long-term vision, and to empower employees in an inclusive culture of growth and opportunity.

    “Jacinta is the right leader to help us continue to build an engaged, inclusive, and high-performing culture, which is vital for our business to thrive in 2022 and beyond,” said Swisher President Neil Kiely in a statement. “Her background and skills align with our guiding principles and business transformation goals. We are excited to have her join our team.”

    Most recently, Carter served as senior vice president, human resources for Atrium Hospitality, where she created a highly sustainable and employee-centric organization and as a key member of the executive leadership team, grew the company from a small start-up into an industry leader. Before Atrium, she was vice president, corporate human resources and corporate communications at Graphic Packaging International, where she was responsible for strategic planning, communications, succession planning and employee learning.

    “Joining Swisher represents a wonderful opportunity to build on what is already a positive, engaging and thriving environment,” said Carter. “I especially appreciate the strong intrapreneurial culture of growth and opportunity at Swisher, and look forward to forging new partnerships and creating opportunities in further developing existing talent and attracting new talent.”