Author: Taco Tuinstra

Tobacco Firms Settle MSA Dispute

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Tobacco companies will pay Massachusetts hundreds of millions of dollars to settle a dispute about how much the cigarette manufacturers owe the state.
The deal ends a dispute stemming from the 1998 Master Settlement Agreement (MSA) in which tobacco companies agreed to pay states billions of dollars each year to offset medical expenses stemming from smoking.
Claiming that some MSA signatories withheld “substantial funds,” the Massachusetts attorney general’s office sent disputes over hundreds of millions of dollars into arbitration.
Monday’s announced deal resolves seven of those past disputes for 2005 through 2011, the office said, and will result in $600 million being paid to the commonwealth this year and “tens of millions” each year going forward.
“The country’s major tobacco manufacturers have pushed smoking products to young people for decades—and this settlement is evidence of our ongoing commitment to hold these companies accountable for their actions that caused irreparable harm to public health and safety,” said Massachusetts Attorney General Andrea Joy Campbell in a statement.
August 13, 2024
Data Shows Potential of Vaping for Cessation

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New data from Action on Smoking and Health U.K. (ASH U.K.) found more than half of ex-smokers in Great Britain who quit in the past five years—amounting to 2.7 million adults—used a vape in their last quit attempt.
Further, it revealed the main motivations for vaping among current smokers included “cutting down on smoking,” “protect[ing] others from the risk of secondhand smoke” or “to help them quit.”
ASH U.K. also reported that misperceptions around vaping are at an all-time high, with 50 percent of smokers wrongly believing vaping to be as or more harmful when compared with smoking.
The new data also found that while current and ever use of vaping among young people has decreased between 2023 and 2024, under 18s are still accessing these age-gated products.
“The latest figures from ASH U.K. once again highlight the stop-smoking credentials of vaping for adults and reinforce the instrumental role these products have and must continue to play in stubbing out the health burden of smoking for good,” said U.K. Vaping Industry Association Director General John Dunne in a statement.
“That said, if vaping is to reach its full potential in supporting the smoke-free ambition, action must be taken to address growing misperceptions about the less harmful alternative, which are no doubt being exacerbated by mainstream media scare stories and some mixed messaging in the public health sphere. This could be achieved through the introduction of national public education campaigns, which arm adults with the best, science-backed information to help them quit.”
August 13, 2024
‘Excessive Tax Hike Could Spur Illicit Trade’

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Indonesia’s above-inflation tax hike could fuel illicit trade and depress government revenue collections, according to Apindo, a leading employers association, reports Tempo.
To discourage smoking, the government last year approved a 10 percent increase in excise taxes on cigarettes for 2023–2024.
Despite the tax hike, the number of cigarette factories has increased significantly in Indonesia. Data from the Directorate General of Customs and Excise revealed a surge from 1,214 factories in early 2022 to 1,723 factories in June 2024.
Meanwhile, Statistics Indonesia (BPS) reported a 28.62 percent smoking rate among Indonesians aged 15 and above in 2023. The largest number of smokers was reportedly in the 35–39 age group at 35.21 percent while the youth group (15–19 years) had a rate of 9.62 percent. The Health Ministry’s 2023 Indonesian Health Survey found 70 million active smokers, including 7.4 percent aged 10–18 years.
August 12, 2024
Officials Draw Fire Over Tobacco Donations

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The Philippines’ Department of Social Welfare and Development (DSWD) has drawn fire for allegedly accepting donations from Philip Morris Fortune Tobacco Corp. (PMFTC), reports The Inquirer.
According to critics, PMFTC donated three mobile clinics to the agency earlier this year for use in social welfare and disaster response operations.
In a statement released Aug. 9, the advocacy group Parents Against Vape said the “acceptance and promotion” of the tobacco industry by government officials “raised serious ethical, legal and health-related issues.”
“The actions of these government officials and the accompanying display of support could be construed as a blatant endorsement of an industry that is known for its detrimental health effects and are deeply troubling for several reasons,” said Parents Against Vape President Rebie Relator.
The group called for “a thorough investigation” into the action of the officials of government agencies involved, saying it violated several laws and policies.
In February this year, the DSWD’s legal service recommended declining the PMFTC donation, prompting Social Welfare Secretary Rex Gatchalian to ask the legal opinion of the Department of Justice (DOJ) in May.
On June 6, the DOJ said it would be OK to accept the donations. Justice Secretary Jesus Crispin Remulla maintained that the Civil Service Commission and Department of Health rules on donations cover only officials and employees and do not extend to government agencies and offices in general.
Nonetheless, several former government officials criticized the DOJ and DSWD’s acceptance of tobacco donations, arguing that the World Health Organization Framework Convention on Tobacco Control, to which the Philippines is a signatory, forbids government officials and employees from soliciting or accepting gifts, favors or donations from tobacco-related entities.
“Civil service rules could not distinguish the agency actions from the actions of its officers or employees,” said Civil Service Commissioner Mary Ann Fernandez Mendoza. “Otherwise, who will be made accountable for violation of civil service rules if we accept the [DOJ] interpretation? It goes against the principle that public office is a public trust.”
August 12, 2024
Tobacconists Booming

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Tobacconists in the Netherlands have seen their turnover jump by 40 percent since the government banned tobacco sales in supermarkets, reports Dutch News, citing NSO Retail, the trade association for entrepreneurs with tobacco shops.
While the supermarket ban took effect July 1, NSO Retail, which represents some 1,600 tobacco stores, notes the increase in turnover at specialty stores has been going on for some time because leading supermarket chains Albert Heijn and Lidl had already stopped selling tobacco.
According to research by TabakNee, a smoking-prevention research website, more than 100 new tobacco shops have opened in the Netherlands this year. “That’s more than in the whole of 2023,” a spokesperson was quoted a saying. “At the beginning of June, we had 230 new shops since the supermarket ban was announced at the end of 2020.”
TabakNee says some entrepreneurs have taken advantage of the measure by opening tobacco shops near supermarkets.
NSO Retail disputes that claim. According to the trade association, “net dozens” of tobacco shops have been added this year. “That is certainly not a spectacular increase when you know that more than 6,000 supermarkets have stopped selling tobacco,” it said.
Petrol stations have also benefitted from the supermarket ban, according to industry organization Drive. Since the start of 2024, tobacco sales at its 1,300 affiliated petrol stations have increased by between 10 and 40 percent, according to the organization.
August 12, 2024
Finnish Teens Ditching Cigarettes

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Finnish teens are drinking and smoking less but using more e-cigarettes and nicotine pouches, reports the Helsinki Times, citing findings from a European survey
The European School Survey Project on Alcohol and Other Drugs (ESPAD) has been monitoring substance use among European students since 1995.
Conducted every four years, the survey includes 16-year-olds across 23 to 39 European countries.
The proportion of ninth graders who have never consumed alcohol has increased dramatically from 10 percent in 1995 to 35 percent in 2024.
Only 6 percent of boys and 4 percent of girls smoked daily in 2024, down from around 20 percent at the beginning of the decade. However, vaping has been rising, with 40 percent of teens having tried e-cigarettes, up from 34 percent in 2019. Daily use is reported by 9 percent of boys and 13 percent of girls.
The use of snus, a form of smokeless tobacco, has also dropped. In 2024, 26 percent of boys and 13 percent of girls had tried snus, with daily use at 7 percent for boys and 3 percent for girls.
Teen use of nicotine pouches increased after Finland permitted the sale of modern oral products in 2023. By 2024, 31 percent of boys and 17 percent of girls had tried nicotine pouches, with 11 percent of boys and 3 percent of girls using them daily.
Cannabis experimentation decreased slightly during the period studied, particularly among boys, with 11 percent of boys and 9 percent of girls having tried it in 2024.
The full ESPAD report will be published in 2025.
August 12, 2024
New Vape Restrictions in Costa Rica

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Costa Rica has banned vaping in public places such restaurants, offices and educational institutions, reports The Tico Times.
The move follows a dramatic increase in vaping-related disorders. In 2023 alone, the Costa Rican Social Security Fund recorded 14 cases of vaping-related intoxication, including nine minors, with seven requiring hospitalization.
Vaping has become increasingly popular among young people in recent years. Gabriela Rojas of the Institute on Alcoholism and Drug Dependence (IAFA) warned that electronic cigarettes contain harmful chemicals.
“The tobacco industry has cleverly marketed these products, using technology, attractive colors, and various flavors to target underage individuals,” said Zeanne Gonzalez, another IAFA official.
August 12, 2024
Sales Up at Haypp Group

Photo: Haypp Group
The Haypp Group, the world’s largest online retailer of nicotine pouches, reported net sales of SEK942.8 million ($89.66 million) for the second quarter of 2024, up 23 percent over the comparable 2023 period.
Gross profit increased to SEK135.2 million, corresponding to a gross margin of 14.3 percent. Adjusted earnings before interest and taxes rose to SEK34.4 million, mainly due to the higher gross margin, increased volume as well as efficiency gains, partially offset by continued investments into additional capabilities.
The company’s nicotine pouch volume grew by 43 percent over the second quarter of 2023.
“Haypp group continued to show a very strong performance in the second quarter with YoY Nicotine Pouch volume growth of 43 percent,” said Haypp Group CEO Gavin O’Dowd in a statement.
“This is accelerating from prior quarters as the category continues to thrive in our growth markets due to the increasing appetite for risk reduced products. While the category experienced some turbulence in the USA during the quarter, we were well positioned and our volume grew around 70 percent. The investments in our business operations have continued to deliver value with an increase of 68 percent in our adjusted EBIT. This robust growth, over many years shows how robust our business is, irrespective of the economic environment.”
The Haypp Group’s interim report is available here.
August 9, 2024
Envoy Shown the Door Over Tabesa Sanctions

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Paraguay has asked the U.S. to withdraw its ambassador following the Biden administration’s announcement of sanctions on Tabacalera del Este (Tabesa), a tobacco firm linked to the South American nation’s former president who has been flagged by the White House for corruption, reports the AP.
In a Aug. 8 statement, the Paraguayan Foreign Ministry asked the U.S. government to “accelerate the departure process” of Ambassador Marc Ostfield.
Earlier this week, the U.S. Treasury Department announced sanctions on Tabesa for supposedly illegally enriching Horacio Manuel Cartes Jara, who served as Paraguay’s president from 2013 to 2018 and still wields significant political power in the country.
According to the Treasury Department, Cartes Jara owned a 50 percent or greater interest in Tabesa and received millions of dollars from the company following a sales agreement.
In a recent news conference, Ambassador Ostfield said the Biden administration was prepared to “use the range of relevant tools to combat corruption, including visa restrictions, designations, financial sanctions and extradition.”
Tabesa and Cartes Jara have rejected the accusations.
August 9, 2024
‘Medical Vapes Facing Uphill Battle’

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Companies developing vape-like devices to ease medical conditions such as migraines and respiratory diseases continue to face skepticism from health authorities and the public, according to a Reuters article.
The piece details the efforts of Qnovia, MIIST Therapeutics and Greentank, which are exploring the potential of nebulizer technology or heating technology to deliver medications.
The companies say inhalation can relieve pain faster and with fewer side effects than pills. Federico Buonocore, a professor focused on alternative pulmonary drug delivery at Kingston University in Britain, told Reuters that existing inhaled drug delivery devices are clunky and difficult to operate, and so tend to be used wrongly. A vape-like design could solve such challenges, he was quoted as saying.
Qnovia plans to submit drug applications in the U.S. soon and the United Kingdom in 2026 for its device as a nicotine replacement therapy, and launch a clinical trial in September.
Greentank is looking for a pharmaceutical partner to support the development of its heating chip for medicine delivery.
Efforts by traditional tobacco companies to tap into the pharmaceutical market have been hampered by mistrust and opposition from health officials.
Philip Morris International last year scrapped a goal to earn over $1 billion in annual revenue by 2025 from its wellness and healthcare unit, which includes a business making asthma inhalers.
CEO Jacek Olczak said the company had been “too optimistic about how the external environment will accept… Big Tobacco” in industries outside of nicotine. An inhaled aspirin product developed by the unit was also deemed unsuccessful after a clinical trial last year.
Tobacco-backed companies developing Covid-19 vaccines using plant-based technology also faced stiff opposition from health groups, including the World Health Organization.
Buonocore said the stigma associated with tobacco and vaping companies would be difficult for the sector to overcome.
August 9, 2024