Author: Taco Tuinstra

‘Pouch Nicotine Limits will Drive Users to Smoking’

The Tholos Foundation released exclusive new research from international polling firm IPSOS on how Danish consumers would react if proposals to limit nicotine in nicotine pouches were implemented. In September 2024 the Danish Government published a “Draft Order on nicotine content limits in tobacco substitutes,”’ which proposed to introduce a limit of 9 mg per pouch.
Findings of the poll include that three quarters of consumers use nicotine pouches for health-related reasons, primarily to reduce or quit smoking. Since the introduction of nicotine pouches to Denmark in 2018, smoking rates have fallen from 19 percent to 14 percent in 2023, and the research shows close to 20 percent of current pouch users would return to smoking if this ban was implemented.
The poll also found that enacting such a proposal would lead to an explosion of black market sales, with fifty percent of consumers expecting to purchase illegally. The poll also found the vast majority of consumers do not support the proposed nicotine limit.
“The evidence is clear: nicotine pouches help consumers quit smoking and reduce harm. The proposed nicotine limit is a disaster for public health which will increase smoking rates, and create a huge black market,” said Tim Andrews, Tholos’ director of consumer issues.
“Eighty percent of consumers know nicotine pouches are helpful in reducing smoking rates, and believe governments should support less harmful alternatives to smoking – a powerful voting block. This is a clear sign to the government they should follow international best practices through introducing smart regulations based on research and evidence, which restrict sales to minors and prevent underaged experimentation, while still allowing adults the ability to quit smoking.”
In 2022 the German Federal Institute for Risk Assessment conducted the world’s most comprehensive research into nicotine pouches, confirming their benefits in reducing health risks compared to smoking, and recommended regulation based around an optimal level of nicotine of 16.6mg per pouch.
November 21, 2024
Imperial Releases Full-Year Results

Imperial Brands has released its full-year results for the year ended Sept. 30, 2024.
The company’s net revenue was up 4.6 percent from tobacco and next-generation products. It saw aggregate market share gains in its five priority markets with four out of five markets in share growth.
Next-generation product net revenue was up 26 percent with growth from all three regions and improved gross margins. Growth at Logista reflected strong tobacco pricing and benefits of prior-year acquisitions.
Adjusted earnings per share were up 10.9 percent, driven by profit growth and share count reduction. Reported earnings per share were up 19.1 percent.
The company saw a free cash flow of £2.4 billion.
Capital returns of approximately £2.8 billion are underway for full-year 2025 with £1.25 billion buyback and full-year 2024 dividend up 4.5 percent.
“As we enter the final year of our current strategy, the investment we have made in consumer capabilities, cultural transformation and agile ways of working has supported another year of accelerated financial delivery and growing capital returns,” said Stefan Bomhard, CEO. “These results demonstrate how we are fulfilling our role as an effective challenger for the industry, able to deliver consistently against operational and financial expectations.
“In tobacco, investment in our brands and sales force initiatives have delivered aggregate market share gains across our five priority markets while delivering strong pricing. This was supported by an encouraging stabilization in German market share for the first time under our strategy.
“In next-generation products (NGP), we continue to build scale across our footprint with net revenues up 26.4 percent at constant currency driven by growth from all three regions and market share growth in all three categories. Our partnership approach to product innovation has enabled us to launch new products across all three categories during the year. This included our successful entry to the fast-growing modern oral category in the U.S. with our brand Zone.
“Our operational delivery coupled with consistently strong cash flow generation has supported enhanced shareholder returns with increases to both our ordinary dividend and share buyback. We are on track to deliver five-year capital returns of c. £10 billion, representing 67 percent of our market capitalization in January 2021 when we launched our strategy. We look forward to presenting the next phase of our strategy at a Capital Markets Day on 26 March 2025.”
November 20, 2024
Surgeon General’s Report Addresses Disparities

A new U.S. Surgeon General’s report, Eliminating Tobacco-Related Disease and Death: Addressing Disparities: A Report of the Surgeon General, highlights the latest scientific evidence on disparities in commercial tobacco product use, exposure to secondhand tobacco smoke, exposure to marketing of tobacco products and smoking-related health outcomes.
The report outlines tobacco prevention strategies and control strategies that have the potential to reduce disparities. It notes that despite progress in reducing tobacco use at the population level, these disparities still exist.
“At IGTC [Institute for Global Tobacco Control], we believe that everyone has a fair and just opportunity to attain their highest level of health, unburdened by the negative effects of tobacco,” said Ryan Kennedy, an IGTC associate professor who contributed to the report as a senior scientific editor. “Advancing tobacco-related health equity is central to the Surgeon General’s call to action, which entailed rigorous review of the latest scientific evidence behind disparity drivers as well as the data on interventions to prevent and reduce health disparities and a vision for equitably pursuing the tobacco endgame.”
According to an IGTC statement, the report asserts that the tobacco industry has specifically targeted certain groups for decades, including communities with high populations of Black people, Hispanic people and people with lower incomes. The report also pinpoints the design, engineering and marketing of menthol cigarettes and other flavored tobacco products as instrumental in perpetuating tobacco initiation, addiction and sustained use.
The report recommends restricting the availability of menthol cigarettes and applying an equity-informed approach to data from surveillance and intervention research. “Interventions designed to reduce the use of tobacco products and the influences of the tobacco industry on society should accompany efforts to remove the underlying social, structural, commercial and political drivers of health inequities,” the report states.
The report also recommends reducing the affordability, accessibility, appeal and addictiveness of tobacco products, eliminating secondhand smoke exposure, implementing high-impact media campaigns and providing barrier-free access to cessation support with broad reach to disparate populations.
IGTC Director Joanna Cohen, who served as a reviewer, stated, “The importance of this report cannot be overstated. Tobacco-related health disparities exist worldwide. This report offers a meticulous review of the existing evidence and makes recommendations that can put an end to tobacco-related health disparities.”
November 20, 2024
Kazakhstan Urged to Reconsider Policies
The Coalition of Asia Pacific Harm Reduction Advocates (CAPHRA) today called on the government of Kazakhstan to reassess its stance on tobacco harm reduction (THR) products, citing compelling evidence from Japan demonstrating the significant health and economic benefits of embracing safer alternatives to smoking.
A recent study published in the journal Healthcare reveals that if 50 percent of smokers in Japan switched from combustible cigarettes to heated tobacco products (HTPs), it could prevent 12 million patient cases and save JPY 454 billion in healthcare costs. This data underscores the immense potential of THR strategies in countries with high smoking rates.
Nancy Loucas, the executive coordinator of CAPHRA, stated that the Japanese example clearly illustrates that HTPs can be an effective harm reduction tool in nations where smoking prevalence remains high, and other safer nicotine products are unavailable.
“Kazakhstan, with its significant gender disparity in smoking rates and tobacco-related health issues, could greatly benefit from adopting a more progressive approach to THR. Kazakhstan’s current policies treat all nicotine products, including less harmful alternatives, the same as traditional cigarettes,” Loucas explains in an e-mailed release. “This approach, coupled with the recent ban on vapes and high taxes on smokeless alternatives, demonstrates a concerning lack of acceptance for harm reduction strategies.
“By ignoring the potential of THR products, Kazakhstan is missing a crucial opportunity to save lives,” Loucas added. “Our analysis suggests that embracing harm reduction policies could prevent 165,000 premature deaths in Kazakhstan over the next four decades.
The government must reconsider its stance for public health, stated Loucas. CAPHRA urges Kazakh policymakers to:
Review and revise current regulations to differentiate between combustible cigarettes and less harmful alternatives.
Following Japan’s successful model, the introduction of HTPs should be considered as a harm reduction tool.
Engage with public health experts and THR advocates to develop evidence-based policies.
Implement a tiered taxation system encouraging smokers to switch to less harmful products.
“The time for Kazakhstan to act is now,” Loucas stated. “By embracing tobacco harm reduction, the country can significantly improve public health outcomes, reduce healthcare costs, and potentially narrow the life expectancy gap between men and women. We stand ready to support Kazakhstan in developing and implementing effective THR policies.”
November 19, 2024
Transition to Safer Products Underway: Report

Image: Rain
A new report from Knowledge Action Change (KAC) describes the extent to which safer nicotine products (SNP) are replacing and substituting for combustible and risky oral tobacco products.
Co-authored by experts in harm reduction, data science and economics, The Global State of Tobacco Harm Reduction 2024: A Situation Report (GSTHR 2024) considers what is driving these changes, how different regulatory environments have developed, and the complex interplay between products, consumers, and policy and regulation.
The latest market data shows that while sales of combustible tobacco remain significantly higher than sales of SNP, two key shifts are occurring in the tobacco and nicotine market: first, the total market share of SNP is increasing, and second, inflation-adjusted combustible tobacco sales are declining, while SNP sales are experiencing rapid growth.
Although the nominal value of combustible tobacco sales increased from $752 billion in 2015 to over $1 trillion in 2024, when adjusted for inflation (and assuming a constant currency value), combustible tobacco sales actually decreased to $685 billion in 2024—an 8.9 percent decline. Meanwhile, inflation-adjusted SNP sales grew nearly sixfold from 2015, reaching, in non-adjusted terms, $96 billion in 2024.
Further analysis shows, however, that Chinese data skews these figures. China’s tobacco market accounts for an astonishing $344 billion of the $1 trillion global combustible tobacco market. Despite being the global center of production for nicotine vapes, the Chinese market for all SNP is extremely small, at less than 1.2 percent of its market for combustibles. GSTHR analysis removing China from the calculations reveals the true scale of the acceleration in the global SNP market: it has reached 12.3 percent of the total tobacco and nicotine market in 2024, up from virtually zero in 2004.

The evidence from this report shows that when safer products are appropriate, acceptable, accessible and affordable—people will switch.
Gerry Stimson, founder, KAC
According to KAC, legal access to a range of SNP will be essential for the billion people who smoke worldwide to benefit from tobacco harm reduction (THR). Research undertaken for GSTHR 2024 shows that more than two-thirds of the world’s adult population can now legally access at least one form of SNP. Access to combustible tobacco products, by contrast, remains legal for 100 percent of the world’s adult population. The report also reveals that the global number of vapers has increased from 58 million in 2018, to reach an estimated 114 million in 2023. With 30 million people using other safer nicotine products, this means the GSTHR estimates there are now around 144 million users of SNP worldwide.
“Harm reduction is often thought about as policies and strategies, driven by public health. But it isn’t only this. It’s also what people do themselves to reduce risks and improve their own health,” said KAC Founder Gerry Stimson in a statement. “Governments and both international and national health organizations, need to help create an environment in which people can be informed and empowered to make those safer choices. And the evidence from this report shows that—when safer products are appropriate, acceptable, accessible and affordable—people will switch, in fact they are already switching, in their millions.”
November 18, 2024
Thailand Launches Track-and-Trace System

Photo: rangizzz
Thailand is launching a track-and-trace system that allows smokers to verify the authenticity of their cigarettes by scanning a QR code, reports The Pattaya News.
According to authorities, the innovation enhances tax collection efficiency, promotes transparency, and ensures compliance with international standards.
Consumers can use smartphones to scan unique QR codes on cigarette excise stamps, accessing details such as the brand, manufacturer, tax payment date, shipment location and price.
Discrepancies between the displayed information and the product can indicate contraband or counterfeit goods. Such illicit products may not meet quality standards and could pose serious health risks due to unregulated ingredients, says the Thai government.
The system allows the public to report suspicious items directly to the Excise Department through a built-in whistleblowing feature.
November 18, 2024
Tucker Carlson Launches Nicotine Pouch

Tucker Carlson has launched his own nicotine pouch brand, ALP, which the conservative American commentator touts as “the first nicotine pouch brand made by and for adults who unapologetically love nicotine.”
ALP will be sold, marketed and distributed through ALP Supply Co., a newly formed 50/50 joint venture between the Tucker Carlson Network and Turning Point Brands. The product comes in three nicotine strengths—3 mg, 6 mg and 9 mg—and in four distinct styles, including Chilled Mint, Mountain Wintergreen, Refreshing Chill and Tropical Fruit.
“There’s no reason consumers should be forced to buy nicotine pouches from soulless, pronoun loving, politicized conglomerates that despise them and their culture,” said Carlson in a statement. “With ALP, they now have an alternative that is delicious and far better than Zyn, which in case you haven’t noticed is as dry as a teabag.”
A portion of ALP profits will go to charities that align with the values of its consumers, such as forest restoration, protecting former K9 servicemembers and funding trade school scholarships for Americans.
According to an earlier article in The Wall Street Journal, Carlson decided to enter the tobacco business because of the way Zyn manufacturer Philip Morris International responded to an off-color remark he made in 2023 about America’s bestselling nicotine pouch.
Until recently, Carlson styled himself as an unofficial spokesman for Zyn. He talked up the brand on frequent podcast appearances. “The truth is, Zyn is a powerful work enhancer and also a male enhancer, if you know what I mean,” Carlson told comedian Theo Von in an interview last October.
Carlson’s representatives then pitched PMI on forming a partnership with the brand. The multinational declined, citing Carlson’s commentary.
“While we understand that these may be Mr. Carlson’s views or made in jest, these statements lack a scientific foundation,” the tobacco company wrote. “Given Mr. Carlson’s popularity and reach, these statements could promote a misunderstanding and misuse of our products.”
Carlson said the message enraged him.
“Of course I wasn’t making a medical claim about their product. I was just joking,” he told The Wall Street Journal. “So I thought: ‘I’m going to launch my own product that’s not controlled by, you know, humorless, left-wing drones.’”
November 18, 2024
Sweden Achieves ‘Smoke Free’ Status

Image: Summit Art Creations
Sweden officially became “smoke free” on Nov. 13
Health data released by Sweden’s public health agency show that just 4.5 percent of the nation’s Swedish-born adults smoke—below the globally recognized benchmark of 5 percent for smoke free status.
At 24 percent, average smoking rates in Europe are five times higher than Sweden’s.
According to tobacco harm reduction activists, the Swedes’ success is the result of their pioneering policy approach to safer alternatives to cigarettes.
“This outstanding achievement marks a significant moment in global public health and stands as a testament to the progressive policies that have guided Sweden’s approach to tobacco control,” said Delon Human, leader of Smoke Free Sweden, in a statement.
“In the early 1960s, nearly half of Swedish men smoked. By embracing and encouraging the use of alternative nicotine products such as snus, oral nicotine pouches and vapes, Sweden has paved a clear path to a smoke-free society while safeguarding public health.
“They should serve as a beacon of hope for the rest of the world and as inspirational proof that a pragmatic, enlightened approach can deliver sensational public health gains and save lives.”

By embracing and encouraging the use of alternative nicotine products such as snus, oral nicotine pouches and vapes, Sweden has paved a clear path to a smoke-free society while safeguarding public health.
Delon Human, Smoke Free Sweden
The new statistics show that 5.3 percent of all adults in Sweden, including immigrants, currently smoke. Remarkably, the data also reveals that people born elsewhere in Europe would be three times more likely to smoke if they had not moved to Sweden.
“Key to Sweden’s success is its pragmatic focus on harm reduction rather than prohibition,” said Anders Milton, a physician and former president and CEO of the Swedish Medical Association.
“A wide range of safer nicotine products, with a variety of strengths and flavors, is legally available both online and in stores, supported by advertising, which raises awareness and encourages uptake.
“The Swedish government also applies a proportional excise tax, keeping smoke-free products more affordable than cigarettes. This tax policy, coupled with public education campaigns, has empowered Swedish consumers to make healthier choices and contributed to the country’s leading role in tobacco harm reduction.”
As a result of its strategy, Sweden has the lowest percentage of tobacco-related diseases in the EU and a 41 percent lower incidence of cancer than other European countries.
“While Sweden celebrates this historic achievement, most other nations remain far from reaching their smoke-free goals,” said Human. “Their rigid, prohibitionist policies limit access to safer nicotine alternatives, including oral nicotine products and e-cigarettes. These regressive measures are pushing smokers away from potentially life-saving tools and stalling progress toward reducing tobacco harm.
November 14, 2024
22nd Century Net Loss Widens

Photo: crizzystudio
22nd Century Group reported net revenues of $5.9 million for the quarter that ended Sept. 30, 2024, down from $7.9 in last year’s comparable quarter. Net loss increased to $3.6 million, compared with $2.2 million in the 2023 quarter.
“Having joined this company just under a year ago, we have transitioned from a purely financial focus to the next phase of 22nd Century Group’s turnaround plans, which includes deploying our extensive asset base of manufacturing, brand, customer relationship and distribution resources to build a sustainable and self-funding growth business,” said Chairman and CEO Larry Firestone in a statement.
“While the third quarter results reflect the operational adjustments that I spoke to on our last report intended to address underperforming results in the filtered cigar business, we remain focused on our goal of EBITDA breakeven results in the first quarter of 2025. We expect that the changes in our core CMO business will drive revenue growth going forward at appropriate margin levels.
“I am also excited to announce that we are now moving ahead on our plans to launch additional products, including VLN SKUs within key customer brand families, as part of our drive to expand the distribution of reduced nicotine content cigarettes manufactured by 22nd Century.
“Adding VLN within other brand families is a straightforward way to reduce our time to market, increase consumer awareness and expand the VLN footprint. This is really the beginning for 22nd Century as the synchronicity between the CMO business and VLN is progressing as planned and is the foundation for our growth plans for 2025 and beyond.”
November 14, 2024
Net Sales up at Scandinavian Tobacco

Image: STG
Scandinavian Tobacco Group (STG) reported a 7.1 percent increase in net sales to DKK2.4 billion ($338.94 million) for the third quarter of 2024, with an EBITDA margin before special items at 23.4 percent. In a like-for-like comparison and excluding exchange rate developments, organic net sales decreased by 0.1 percent.
Discontinuation of distribution of third-party nicotine pouches in the U.S. impacted growth negatively by 1 percent. Growth in the company’s machine-rolled cigars and smoking tobacco and next generation products (NGP) segment was partly offset by a decline in STG’s handmade cigars and accessories business.
The NGP brand XQS increased 72 percent, though the absence of the distribution of nicotine pouches reduced category growth to 2 percent.
The decrease in the EBITDA margin was a result of STG’s investment to support growth of our its NGP portfolio, the currently lower profitability in Mac Baren and the comparison to a strong third quarter 2023.

With the acquisition of Mac Baren, we are in 2024 on track to surpass DKK9 billion in net sales for the first time ever.
Niels Frederiksen, CEO, Scandinavian Tobacco Group
“With the acquisition of Mac Baren, we are in 2024 on track to surpass DKK9 billion in net sales for the first time ever and we expect the Mac Baren acquisition to deliver significant synergies as we implement the integration plan, said STG CEO Niels Frederiksen in a statement.
“In the third quarter market share in machine-rolled cigars in Europe stabilized and began to improve and in particular France showed promising progress. XQS performed well in both Sweden and in U.K. as well as in Denmark where the brand has recently been introduced. The remainder of the growth enablers also delivered growth.
“We remain committed to enhancing shareholder returns and we are about to complete our current share buyback, after which we will have returned almost DKK1.5 billion to shareholders over the course of 2024.”
November 14, 2024