Author: Taco Tuinstra

Cerulean Debuts Snus Test Station

Photo: Cerulean
Cerulean has launched Orion, the world’s first automated test station for snus.
The Orion can handle oral pouches of all commercially available size formats, including mini, large, maxi and slim.
The instrument measures pouch weight, length, width, end seam width, longitudinal seam overlap width and pouch tensile strength. According to Cerulean, the Orion requires only a few minutes to configure and perform the test. The instrument is equipped with an intuitive user interface that provides key information, graphical representation of process capability and stores the data in a network accessible SQL database. A powerful vision system takes images of both sides of every pouch that are used to measure the pouch dimensions, seams width and longitudinal seam position.
The Orion test station reduces the number of operators per line and provides fast, consistent and repeatable users’ independent testing process with real time visualization of the test results, configurable report generators and readily available connectivity to LIMS and MES systems.
According to Cerulean, the Orion saves operator time and improves quality through independent, fast, consistent and repeatable testing of pouches. With a real time visualization of test results and configurable report generation, the Cerulean test station guarantees that the production process is always in control.
January 29, 2022
Lil Inducted Into Korea Brand Hall of Fame

Photo: KT&G
KT&G’s Lil heat-not-burn device has been named as an excellent e-cigarette brand in the Korea Brand Hall of Fame for the fourth consecutive year.
Supervised by South Korea’s Industrial Policy Research Institute, the Korea Brand Hall of Fame is an annual award event that selects the brands most loved by consumers.
Launched in 2017, Lil has been well received by the consumers, who bought more than 1 million units in the first year.
After this initial success, KT&G released line extensions, such as Lil Plus, Lil Mini, Lil Hybrid and Lil Solid. By 2021, the cumulative sales of Lil exceeded 4 million units in Korea alone.
Lil performed well internationally too. In January 2020, KT&G signed a supply contract with Philip Morris International for overseas marketing and sales of Lil, which subsequently secured a bridgehead for expansion in the global cigarette market.
KT&G started selling Lil in Russia, Ukraine and Japan in 2020 followed by product launches in Central Asia and Europe. In November 2021, KT&G launched Lil in Guatemala. Today, KT&G exports Lil to 23 counties.
“We built the brand Lil on the identity of ‘practical minimalism’ together with systematic technological innovation,” said Lim Wang-seop, head of KT&G’s next-generation product business unit, in a statement. “We’ll make the brand recognized by the world consumers through developing the products that meet their needs and tastes.”
January 29, 2022
Promotions at Keller and Heckman

Neelam Gill and Eric Gu (Photos: Keller and Heckman)
Keller and Heckman, a law firm specializing in the tobacco and vaping industries, has promoted Neelam Gill to counsel and Eric Gu to senior regulatory counselor.
A resident in the firm’s Washington, D.C., office, Gill practices in the area of food and drug law and tobacco and e-vapor law. In her tobacco and e-vapor practice, she advises tobacco, e-cigarette and e-liquid manufacturers, distributors, retailers, suppliers and trade associations on FDA, state and global regulatory compliance issues.
In the food and drug arena, she assists clients with a variety of FDA regulatory matters and labeling issues. Gill advises clients on preparation of FDA submissions, including premarket tobacco product applications, substantial equivalence reports, tobacco product master files and quality issues pertaining to the entire tobacco and nicotine product lifecycle.
A resident in Keller & Heckman’s Shanghai office, Gu practices in the area of food and food packaging law. He counsels clients on food labeling, food ingredients and food packaging compliance matters. In addition, he counsels clients on regulatory issues with respect to other products, including cosmetics, drug/drug excipients, tobacco and e-cigarettes and other consumer products.
Gu frequently assists clients in obtaining important premarket approvals and permits, including approvals of new food packaging substances, the food production license and the drug excipient registration. Gu’s regulatory experience extends to China, Hong Kong, Taiwan, Japan, Southeast Asia, the European Union and the United States.
January 29, 2022
Altria Group Reports Full-Year Results

Photo: Casimiro
Altria Group earned net revenues of $26.01 billion in 2021, down 0.5 percent from its 2020 net revenues. Net revenues net of excise taxes was up 1.3 percent to $21.11 billion in 2021. For the fourth quarter of 2021, Altria Group reported net revenues of $6.26 billion, down 0.8 percent over those reported in the comparable 2020 period. Revenues net of excise taxes were up 0.6 percent to $5.09 billion for the fourth quarter.
“Altria delivered outstanding results in 2021 across our businesses, including strong financial performance, progress toward our vision and advancements in our ESG efforts,” said Altria CEO Billy Gifford in a statement.
“We returned more than $8.1 billion in cash to shareholders in 2021 through dividends and share repurchases. This total represents the third-largest single-year cash return in Altria’s history and the largest annual return since 2002.
“Our plans for the year ahead include a continuation of our strategy to balance earnings growth and shareholder returns with investments toward our vision. We expect to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93, representing a growth rate of 4 percent to 7 percent from an adjusted diluted EPS base of $4.61 in 2021.”
Altria’s heated-tobacco business suffered a setback when the U.S. International Trade Commission imposed an importation ban on the IQOS device, Marlboro HeatSticks and infringing components following an intellectual property dispute with Reynolds American Inc. As a result, the IQOS system is no longer available for sale in the U.S.
Atria says it remains focused on returning IQOS to the U.S. market.
January 27, 2022
PMI Included in 2022 Gender Equality Index

Photo: Formatoriginal
Philip Morris International has been included in the 2022 Bloomberg Gender Equality Index (GEI) for the second year running. This is in recognition of the progress PMI has made in increasing gender equality globally. Currently, 39.2 percent of management positions are held by women, an increase of more than 10 percent since 2014 and still growing.
“I am delighted that PMI has made the GEI for the second year running, particularly given that the threshold for inclusion within this index has grown since last year,” said Silke Muenster, chief diversity officer at PMI, in a statement. “While we still have a long way to go, I am very proud of the progress we have made to date, and I am confident about achieving more in the future.”
As part of PMI’s commitment to gender parity, a global company-wide target was set to improve gender balance to at least 40 percent female representation in management by the end of 2022 and measuring and reporting progress against it.
Other achievements and initiatives to further gender equality by PMI have included: becoming the first EQUAL-SALARY globally certified company; addressing gender bias in talent assessments; introducing global inclusive parental leave guidelines; celebrating top female talent; and launching a women in leadership program.
The GEI is a modified market capitalization-weighted index that aims to track the performance of public companies committed to transparency in gender data reporting. It measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and pro-women brand.
“We are proud to recognize PMI and the other 417 companies included in the 2022 GEI for their commitment to transparency and setting a new standard in gender-related data reporting,” said Peter T. Grauer, chairman of Bloomberg and founding chairman of the U.S. 30 Percent Club. “Even though the threshold for inclusion in the GEI has risen, the member list continues to grow. This is a testament that more companies are working to improve upon their gender-related metrics, fostering more opportunity for diverse talent to succeed in their organizations.”
All companies included in this year’s index scored at or above a global threshold established by Bloomberg to reflect disclosure and the achievement or adoption of best-in-class statistics and policies.
January 26, 2022
China Probes Huabao Founder

Photo: Andrey Popov
Chinese regulators have announced an investigation into Chu Lam You, the majority shareholder in Huabao International Holdings, China’s largest e-liquid, tobacco flavoring and fragrance company.
One of China’s richest self-made women, Chu is being investigated for unspecified “suspected disciplinary violations,” according to a Hong Kong stock exchange filing. The company said in a statement that it was informed of the investigation by its subsidiary Huabao Flavours and Fragrances. “Up to the date of this announcement, the company has not been provided with any details of the nature of the suspected violations of Ms. Chu that [are] currently being investigated. The business operation of the group remains normal,” the company stated.
Huabao added that the subsidiary received a case filing notice from the Leiyang City Supervisory Committee indicating that the probe was being carried out by the Chinese Communist Party and the local government, according to the Financial Times.
Launched in 1996, Huabao produces flavors and fragrances used by tobacco manufacturers, including for the e-cigarette or vaping market, as well as food companies.
Like many high-profile Chinese businesspeople, Chu has also served on various industry and government advisory committees. The probe into Chu comes as China’s long-running anti-corruption campaign gathers momentum as Xi seeks to secure a historic third term.
January 25, 2022
Snus Use at Record High in Norway

Photo: uskarp2
Daily snus use in Norway has nearly doubled in a decade, reports Norway Today, citing figures released by Statistics Norway (SSB). Nearly 15 percent of the population consumed snus daily in 2021 compared with 8 percent 10 years ago.
The proportion of daily snus users is at the highest level ever, jumping to 15 percent in 2021, according to SSB consultant Sindre Mikael Haugen.
Figures show that 21 percent of men use snus on a daily basis while the figure was 8 percent for women.
Meanwhile, the number of people who smoke daily decreased slightly. Some 8 percent of 16-year-olds to 74-year-olds stated that they light up daily compared to 9 percent in 2020.
Women (9 percent) were more likely to smoke daily than men (6 percent). While Baby Boomers (55-year-olds to 64-year-olds) smoke most, this group also experienced the greatest decline in smoking rates recently. Only 14 percent of this age group smoke compared to 17 percent in 2020.
January 25, 2022
Henrik Brandt Tapped as Next STG Chairman

Photo: jirsak
Scandinavian Tobacco Group’s (STG) board of directors intends to elect Henrik Brandt as chairman following Nigel Northridge’s decision to retire at the company’s next annual general meeting.
Northridge has informed the board of directors that he will not stand for reelection at the annual general meeting on March 31, 2022.
Northridge joined the board of directors in 2016 and has been chairman of the board of directors since 2017.
Subject to the elections at the annual general meeting in March 2022, the board of directors will elect Brandt as the new chairman of the board of directors. Brandt joined the board in 2017 as vice chairman.
“Nigel has been the chairman during a period of significant change and growth for Scandinavian Tobacco Group,” said Brandt in a statement. “During his tenure, the company has developed from being newly listed to a stronger company with a clear strategy in place for the future. Nigel deserves a lot of credit for having led this development. I also wish to thank the board of directors for their confidence in me as they express their intention to elect me as the future chairman.”
“It has always been my desire to retire in my mid-60s in order to spend more time with my wife and grandchildren,” said Northridge. “I have been honored to chair the board of directors of Scandinavian Tobacco Group for the past five years, and I have throughout enjoyed the cooperation with the board of directors and the strong leadership of the company. I am confident that Scandinavian Tobacco Group is well-positioned for continued growth and development. I wish my successor, my colleagues on the board of directors, the management and all employees of the company the very best for the future.”
Brandt has extensive executive and nonexecutive experience in leading international, publicly listed and private equity businesses. His career has included executive positions at the House of Prince, STG and Royal Unibrew.
In addition to being vice chairman of the board of directors of STG, Brandt is chairman of the board of Toms Gruppen, Fritz Hansen, Intervare and Danish Bake Holding. He is also a member of the board of directors of Ferd Holding, the Gerda and Victor B. Strands Foundation, Gerda and Victor B. Strand Holding and Social Grill.
January 25, 2022
Bangladesh Investigates BAT’s Dominance

Photo: ronstik
Japan Tobacco International has accused BAT Bangladesh of anti-competitive practices, reports The Daily Star. The Bangladesh Competition Commission (BCC) is investigating the complaint.
United Dhaka Tobacco Company (UDTCL) alleges in the complaint that BATB abuses its dominant position. JTI filed the case in March 2021, three years after entering Bangladesh’s tobacco market by acquiring UDTCL for $1.47 billion in 2018 from Akij Group.
When JTI entered Bangladesh, UDTCL had a 19.8 percent share in the cigarette market, which has now dropped to 12.6 percent. JTI alleges this is due to BATB’s anti-competitive practices.
BATB is the leading cigarette seller in the country followed by JTI and Abul Khair Tobacco.
BATB had a more than 95 percent share in the premium and “high” segment of the market, according to a 2019 study. Its share in medium and low segments was 65 percent and 58 percent, respectively.
JTI alleges that BATB operates a program with its retailers to prevent competition in the market and stop rivals from gaining more market access. Under the alleged program, if a BATB partner retailer stocks or sells United Dhaka Tobacco products, BATB or its representatives penalize or deduct loyalty points from the retailers or threaten to stop supplying products to the retailers.
“BATB runs the program directly and/or indirectly through its representative and/or distributor,” said JTI, adding that it earlier requested BATB to put an end to all programs and acts that restrict competition.
BATB denied the allegations, according to the JTI complaint.
Md Mofizul Islam, the chairperson of the BCC, says the commission is investigating the case. “We will try to give a verdict as soon as possible after holding a hearing.”
January 24, 2022
Thailand Explores E-Cigarette Legalization

Photo: kikujungboy
The Digital Economy and Society (DES) Ministry set up a working group to see if electronic cigarettes can be legalized as an alternative for smokers, reports The Nation.
Asa Salikupt, from the End Cigarette Smoke Thailand (ECST) network, said the network supports DES Minister Chaiwut Thanakamanusorn’s plan to legalize e-cigarettes and hopes the working group will be transparent, listen to public opinions and allow e-cigarette users to provide information.
“We believe the legalization of e-cigarettes will help Thailand achieve the goal of reducing cigarette smokers and protecting nonsmokers from the danger of secondhand smoke,” Salikupt said.
The Excise Department can introduce an e-cigarette tax once e-cigarettes are legalized.
Maris Karanyawat, also from the ECST, said Britain, New Zealand and the Philippines are likely to promote the use of e-cigarettes to help reduce the consumption of harmful substances and help those who cannot quit smoking cold turkey.
“More than 70 countries have legalized e-cigarettes as it can reduce the number of smokers,” Karanyawat added.
By banning e-cigarettes, the government is losing tax revenue, people are losing access to safer alternatives and the Tobacco Authority of Thailand is losing a chance to make money, according to Taopiphop Limjittrakorn, Move Forward’s Bangkok MP.
January 24, 2022