Author: Taco Tuinstra

  • Revenues and Income Down at VPR

    Revenues and Income Down at VPR

    VPR Brands reported revenues of $1.77 million for the second quarter of 2024, down from $1.9 million in the comparable 2023 quarter. Gross profit was $451,469, compared with $1.1 million in the second quarter of 2023.

    “While the second quarter presented some challenges, we are encouraged by the solid growth in our product sales and the positive trajectory of our business,” said VPR Brands CEO Kevin Frija.

    “Our ability to generate consistent revenue, coupled with our strategic investments, positions us well for future success. We are committed to driving innovation and expanding our market presence, and we believe that our focus on quality and customer satisfaction will continue to deliver value to our shareholders.”

    Looking ahead, VPR Brands says it remains focused on expanding its product lines and enhancing its market footprint. “With a solid balance sheet and a dedicated team, the company is well-positioned to capitalize on emerging opportunities in the electronic cigarette and vaporizer markets,” the company wrote in a press note.

    Photo: crizzystudio
  • Japan Tobacco Acquires Vector Group

    Japan Tobacco Acquires Vector Group

    The JT Group will acquire Vector Group (VGR), the fourth largest tobacco company in the United States.

    Based on the purchase agreement, the JT Group will conduct a tender offer for all outstanding shares of VGR through Vapor Merger Sub, an entity established specifically for this acquisition.

    The JT Group intends to acquire 100 percent of VGR’s outstanding fully diluted share capital for a per share price of $15, representing a total equity value transaction estimated at around $2.4 billion. The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following closing, VGR will be a wholly owned consolidated subsidiary of JT and be delisted from the New York Stock Exchange.

    “Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organization. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands’ legacy of value-focused, quality products and looks forward to continuing to meet customers’ evolving needs.”

    “We are excited by this acquisition which, in line with our tobacco business strategy, will contribute to the acceleration of the ROI [return on investment] in our combustible business and expand JT Group’s global footprint,” said Masamichi Terabatake, JT Group CEO and president of the company’s tobacco business, in a statement.

    “By adding this sizeable and historically profitable business to our company, we are confident the transaction will contribute to sustainable growth and increase JT Group’s corporate value.”

    “This transaction will significantly increase our U.S. presence, boosting our market share from 2.3 percent to approximately 8 percent and giving us full ownership of two of the top-10 U.S. cigarette brands,” said Eddy Pirard, president and CEO of JT International.

    “The transaction will enable us to also strengthen our distribution network and create mid- to long-term strategic opportunities to boost our competitiveness in this major tobacco market.”

  • Burbidge Joins Global Action to End Smoking

    Burbidge Joins Global Action to End Smoking

    Global Action to End Smoking appointed Cole Burbidge as a new director of programs. With a distinguished career in advancing public health in underserved communities, Burbidge brings a wealth of experience that will support the organization’s grantmaking work, according to the organization.

    Burbidge is a physician by training and a strong advocate for patient-centered care, understanding firsthand the gaps between idealized healthcare models and the reality faced by patients. His career has been dedicated to improving health outcomes for recreational substance users and high-risk patients.

    At Global Action, Burbidge’s main roles will be developing requests for grant proposals and evaluating prospective research projects. He will also be supporting the communications team as it disseminates relevant information to people who smoke. He will report to Erik Augustson, vice president of programs.

    “I’m excited to continue my work in improving public health through my new role at Global Action,” said Burbidge in a statement. “I am deeply passionate about meeting individuals where they are to make sure that a healthier lifestyle is effective and accessible.”

    Burbidge’s experience spans consulting roles with healthcare organizations, pharmaceutical companies and risk-reduction advocacy groups as well as leadership positions in industry, where he oversaw teams in scientific and regulatory affairs.

    “Dr. Cole Burbidge is a strong addition to our team at Global Action,” said Augustson. “His expertise and passion for patient-centered care will be invaluable as we continue our mission to end smoking. Dr. Burbidge’s focus on innovative, data-driven solutions aligns perfectly with our goals, and we look forward to the impact he will have on our programs.”

  • Smoore Reports Half-Year Results

    Smoore Reports Half-Year Results

    Photo:TacoTuinstra

    Smoore International Holdings reported revenue of RMB5.04 billion ($705.4 million) for the six months that ended June 30, down 1.7 percent from the comparable 2023 period. Gross profit rose 3.2 percent to RMB1.91 billion while pretax profit was up by 1.9 percent to RMB811.56 million.

    The group’s branded business grew by 71.9 percent to RMB1.12 billion in the first half of 2024, boosted by the company’s digital marketing operations, which enabled the company to respond rapidly to consumer preferences. The group’s Vaporesso brand continued to increase its market share in the open system product segment and has become the leading brand in this category.

    Smoore’s corporate client sales, meanwhile, declined by 12.3 percent to RMB3.92 billion in the first six months of 2024, reflecting different sales performances in different markets around the world.

    In the U.S., Smoore faced competition from noncompliant vaping products. However, the company said it was encouraged by clarifications of the regulatory framework and the strengthening of enforcement in that market, pointing to creation of a federal multi-agency task force to combat the illicit market, among other developments.

    Increasing regulation of the vaping market in Europe, meanwhile, has impacted demand for traditional disposable products, causing the group’s revenue from single-use vapes to decline by approximately 18.9 percent year-on-year to approximately RMB1.22 billion.

    Smoore said it has successfully launched a number of new closed system products in the international market in the first half of the year, and it is confident that this will translate into stronger orders in the second half of the year.

    In China, where the group’s corporate client-oriented business centers on closed system electronic vaping products, Smoore reported sales revenue of RMB87.78 million, representing an increase of approximately 41.4 percent as compared to the same period last year.

  • Pyxus Appoints Chief Legal Officer

    Pyxus Appoints Chief Legal Officer

    Photo: RerF

    Pyxus International has appointed David Singer as senior vice president, chief legal officer and secretary. Singer will report to Pyxus President and CEO Pieter Sikkel and join the company’s executive management team.

    Singer, who served on Pyxus’ legal team from August 2018 to May 2022, rejoins the company with nearly 20 years of experience, most recently serving as chief administrative officer and general counsel for Kymera International, a global specialty materials company. His previous roles include senior in-house counsel positions and experience as a litigation, corporate and regulatory attorney.

    “We are pleased to welcome David back to Pyxus in this new capacity,” said Sikkel in a statement. “Given our diverse global footprint and the regulatory complexities of our operations, David’s legal expertise, strategic insight and deep understanding of our business are invaluable. His leadership will help us uphold a culture of responsibility and compliance as we pursue our strategic goals and drive stakeholder value.”

    Singer succeeds Will O’Quinn, who has been senior vice president, chief legal officer and secretary since 2011. O’Quinn will remain a key member of the company’s leadership team, assuming the position of senior vice president of special projects, and will continue reporting to Sikkel.

    “We thank Will for his contributions to grow the company’s legal function to what it is today and appreciate his enthusiasm to leverage his legal expertise and company-specific business acumen to deliver success in his new role while positioning Pyxus for the future,” stated Sikkel.

  • Seed Sales Surge

    Seed Sales Surge

    Photo: Taco Tuinstra

    Tobacco growers in Zimbabwe have bought more than 1,000 kg of seed to date, reflecting a significant increase over the 831 kg sold at the same time last year, reports the Sunday Mail.

    The seed purchased is enough to cover 201,036 hectares, according to the Kutsaga Tobacco Research Board.

    Tafadzwa Chimuti, spokesperson for the Association of Tobacco Growers, said the upcoming farming season could set new records in terms of acreage, quality and output.

    “This could be a record-breaking year, driven by last season’s favorable prices and the lack of alternative crops offering better returns,” he was quoted as saying.

    The most recent harvest was negatively impacted by drought related to the El Nino weather phenomenon.

    The upcoming growing season, by contrast, will be influenced by the La Nina weather phenomenon, which is expected to bring increased rainfall.

  • RLX Revenue Jumps 66 Percent

    RLX Revenue Jumps 66 Percent

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB627.2 million ($86.3 million) in the second quarter of 2024, up 66 percent from the comparable 2023 quarter. U.S. GAAP net income was RMB134.9 million, down from RMB204.7 million in the same period of 2023. Non-GAAP soared to RMB213.1 million from RMB86.2 million. Gross profit was RMB157.9 million compared with RMB98.5 million in the comparable 2023 period.

    “We delivered a strong second-quarter performance as revenue continued to increase sequentially, driven by our international business expansion,” said RLX chairperson and CEO Ying (Kate) Wang in a statement.  

    “Our deep exploration of overseas markets and regulations has provided us with valuable insights into the global e-vapor landscape, enabling us to create effective, targeted regional strategies. This year, global regulations are rapidly evolving, with more regulators recognizing e-vapor products as harm reduction tools for adult smokers. Leveraging our broad expertise in regulatory compliance, we are well prepared to navigate these changes and ensure a seamless transition for our users and partners.”

    Chief Financial Officer Chao Lu said the considerable year-on-year increase in net revenues reflected the company’s ability to capture growth opportunities in international markets. “While our gross margin declined slightly due to an unfavorable shift in our revenue mix, disciplined cost management bolstered our non-GAAP operating profit margins,” he said.

    “Looking ahead, we are confident of driving continued improvement in both our top and bottom lines, fueled by ongoing revenue growth from international markets and our relentless focus on operational efficiency. As always, our priority is to deliver sustainable and profitable returns to our shareholders.”

  • IPM Reiterates Commitment to Tackling Illicit Trade

    IPM Reiterates Commitment to Tackling Illicit Trade

    Image: Suriyawut

    To mark India’s 1947 independence from British rule on Aug. 15, IPM India, an affiliate of Philip Morris International, reiterated its commitment toward preventing the illicit trade in tobacco products, which the company says threatens India’s economic interest and consumers.  

    In a 2022 study, FICCI Cascade valued India’s illegal cigarette market at INR229.3 billion ($2.73 billion), causing the government to miss out on INR133.31 billion in revenue, up 46 percent from the 2012 figure. According to the Tobacco Institute of India, the illegal cigarette trade accounts for as much as one-fourth of the cigarette industry in India.

    “Eliminating illicit trade has been a longstanding priority for us and continues to be an integral part of our efforts to drive operational excellence and build a sustainable future,” said IPM India Managing Director Navaneel Kar in a statement.

    “In India, we are invested in the cause, working with law enforcement agencies to educate and raise awareness about illicit tobacco trade. Public-private partnerships based on an inclusive approach by governments, the private sector and civil society are vital to helping combat the trade.

    “Interconnected systems and advanced technologies, such as digitally verified track-and-trace systems, holograms, QR codes and RFID tags, are essential for monitoring and detecting counterfeit products. As India progresses on its path to become a global economic powerhouse, it is critical to take stricter measures to eradicate illicit and build a safer tomorrow.”

  • Airbox Fined for Illegal ‘Distance Selling’

    Airbox Fined for Illegal ‘Distance Selling’

    Image: Talaj

    Airbox of Slovakia has been fined HUF189 million ($527,283) for illegally selling electronic nicotine delivery devices online in Hungary, reports the Daily News Hungary. The Hungarian Competition Authority (GVH) has blocked the company’s website.

    The GVH started proceedings against Airbox in February after it found that the company was likely misleading customers on its Hungarian-language website about the legality of its products in Hungary.

    Hungary law prohibits the online marketing and distance selling of flavored tobacco products and electronic smoking devices. The GVH found that Airbox had engaged in unfair commercial practices.

    Earlier, the GVH acted against two Slovak companies for illegally selling Elf Bar and other vaping products in Hungary.

  • New Zealand and Sweden Lauded for THR

    New Zealand and Sweden Lauded for THR

    We Are Innovation (WAI) released a video about Sweden and New Zealand reducing smoking rates through the consistent use of innovative alternatives. Titled “Smoke-Free Success: Sweden and New Zealand’s Experiences,” it highlights the role of safer nicotine products in decreasing smoking-related deaths and diseases.

    As WAI explains on its website, Sweden’s pragmatic approach to smoking reduction has been heralded as a global model. Historically, Sweden has had a significant population using snus, a smokeless tobacco product. This cultural acceptance of the product laid the groundwork for the introduction of oral nicotine pouches, providing smokers with safer alternatives to cigarettes.

    According to Anders Milton, former chair of the World Medical Association, 17 percent of Swedish men use snus daily while only 5.6 percent of Swedish men—the lowest rate globally—smoke. Sweden also boasts the lowest incidence of lung cancer in the European Union.

    In New Zealand, the legalization of vaping has led to a significant decline in smoking rates, dropping from 16 percent to 6.8 percent over eight years, according to WAI. This progress, the group says, positions New Zealand to achieve its smoke-free target by 2025.

    Marewa Glover, a behavioral scientist with over 31 years of experience in public health, believes that vaping has been transformative. According to her, it offers smokers a less harmful option and substantially reduces smoking rates.

    WAI contrasts the approach of Sweden and New Zealand to that of Australia, where restrictive policies on vaping have hindered anti-smoking efforts, according to the organization. Critics point out that ideological objections and vested interests have slowed progress toward harm reduction, with some groups favoring an abstinence-only approach rather than adopting alternative solutions like vaping. The abstinence-only approach does not work for everyone, and since cigarettes bring in a lot of tax, there are vested interests that benefit from that, according to WAI.