Author: Taco Tuinstra

  • Nicotine Alternatives Under Scrutiny

    Nicotine Alternatives Under Scrutiny

    Photo: Alexey Stiop

    Nicotine alternatives, such as 6-methyl nicotine, may be more potent and addictive than nicotine itself, reports Reuters, citing U.S. Food and Drug Administration scientists and independent researchers.

    Traditional nicotine found in many vapes and pouches is extracted from tobacco leaves; 6-methyl nicotine, in contrast, is made in a laboratory.

    While chemically similar to nicotine, the synthetic substances are not subject to U.S. tobacco and vaping regulations, allowing manufacturers to sell vapes with nicotine analogues without seeking FDA authorization.

    Tobacco and vape companies have criticized that the FDA product authorization process is costly and time-consuming. Only a handful of applications have been approved.

    In response to questions from Reuters, the FDA said it was reviewing the available data on nicotine alternatives to inform potential actions.

    Three academic researchers told the news agency that current studies of 6-methyl nicotine are too limited to draw definite conclusions on the health impact or to what degree it is addictive.

    The limitations of existing research, the researchers said, included that some papers were industry funded while others focused on the short-term impact on animals or cells and were insufficient to understand 6-methyl nicotine’s effects on human bodies.

    The FDA has yet to approve any flavored vape using traditional nicotine for sale in the United States, saying companies have not been able to show that the health benefits they offer to smokers outweigh the known risks to young people, who may be more attracted by the flavors.

    The Spree Bar vaporizer, which uses a 6-methyl nicotine solution branded as “Metatine,” notes on its website that Metatine “may have a toxicity profile similar to nicotine.”

    Sven Jordt, a professor at Duke University who has authored papers on products like Spree Bar, said 6-methyl nicotine could me more addictive and toxic than its traditional cousin.

    “Do we want to have such a chemical as a recreational product, available to anyone?” he asked. “That’s really questionable.”

  • BAT Threatens to Pull Out of Pakistan

    BAT Threatens to Pull Out of Pakistan

    Photo: Rawf8

    British American Tobacco may pull out of Pakistan if the government further increases cigarette taxes, a company representative warned during meetings with Prime Minister Shehbaz Sharif and the Special Investment Facilitation Council national coordinator General Sarfraz Hussain.

    According to BAT, existing taxation has already caused its sales in Pakistan to slump by 38 percent and increased the size of the illicit market to 58 percent of nationwide cigarette sales. In the previous budget, the government significantly increased taxes on tobacco, which instead of curbing smoking resulted in shifting smokers from tax-paid expensive brands to cheaper illicit brands, the company noted.

    “The past couple of years’ developments on fiscal policies have raised questions about the sustainability of the company’s operations in Pakistan,” Michael Dijanosic, BAT’s regional director for Asia Pacific, Middle East and Africa, was quoted as saying by The Express Tribune.

    If there is a repeat of last year’s tax increase, there is no reason the company should not exit Pakistan, he said.

    The past couple of years’ developments on fiscal policies have raised questions about the sustainability of the company’s operations in Pakistan.

    The regional director said that the federal excise duty increased by 73 percent in real terms, making it unviable to do business. He also said that despite a 73 percent inflation-adjusted increase in taxes, the government’s revenues grew only 8 percent in real terms due to the slump in sales.

    Any further increase in federal excise duty rates in the budget would bring the company’s factories to a standstill, the BAT official warned.

    According to Dijanosic, the formal tobacco sector paid nearly PKR700 billion ($2.51 billion) in taxes to the government during the past five years. PTC has also invested in a global business center in Lahore and plans to expand operations if the government reviews its taxation policies.

    PTC has been exporting cigarettes to numerous markets since 2019 and has so far earned $156 million for the country. For the next fiscal year, the company is targeting $60 million in exports, but one-third of the order is at stake due to the Ministry of Health’s reluctance to amend the Statutory Regulatory Order, which prohibits the sale of cigarettes in packs of 10 sticks, for export orders.

    In March, the prime minister awarded the second-highest taxpayer award to PTC in all categories of taxes.

  • Smoking Down, Vaping Up Among Minors

    Smoking Down, Vaping Up Among Minors

    Photo: Taco Tuinstra

    Smoking is down but vaping is up among Indonesian minors, reports The Jakarta Globe, citing a recent health survey.

    According to the Indonesian Health Survey (SKI), the prevalence of smoking among 10-18-year-olds decreased to 7.4 percent in 2023, down from 9.1 percent recorded in the 2018 Basic Health Research.

    However, the figure is still higher than the 7.2 percent prevalence in 2013 and the 5.4 percent target set in the 2015-2019 National Medium-Term Development Plan, noted Eva Susanti, director of non-communicable disease prevention and control at the Health Ministry during a World No Tobacco Day media briefing in Jakarta on May 29.

    Minors’ use of e-cigarettes, meanwhile, increased from 0.06 percent in 2018 to 0.13 percent in 2023.

    The Health Ministry is intensifying efforts to prevent children from smoking or vaping. This includes banning the consumption of tobacco and e-cigarettes by children and pregnant women, prohibiting tobacco advertising on social media, and outlawing the sale of single cigarettes.

  • Filtrona Opens Upgraded Innovation Center

    Filtrona Opens Upgraded Innovation Center

    From left to right: Joyce Ng, global HR director; Hugo Azinheira, global director, innovation and ESG; Robert Pye, CEO, and Kow Lay Moi, global operations director. (Photo: Filtrona)

    Filtrona inaugured its expanded Filtrona Innovation Centre (FIC) in Surabaya, Indonesia, on May 29.

    The 2,242 square meter FIC houses an R&D facility and accredited scientific services labs that provide independent tobacco analytical testing services. The upgraded facility features a new exhibition area, co-working space and a heated tobacco product (HTP) testing lab that has tripled its capacity to meet growing demand. Filtrona also invested in a new HTP testing machine and a puff-by-puff aerosol analysis machine.

    The expansion of the facility follows Filtrona’s recent launch of its new Boreas range of HTP filters.

    The R&D facility includes a production area for manufacturing filter samples, a smoke test room, and a filter library with more than 11,000 filter designs produced from the 1950s to the present day.

    “With innovation at the heart of Filtrona, the FIC is a key node in our global operations and is instrumental in the design, testing and manufacture of specialty filter solutions for our customers,” said Filtrona CEP Robert Pye in a statement.

     “We will continue to invest in innovation and R&D to better serve our customers in product development and diversification, supported by our advanced knowledge on filtration, innovative designs, cutting-edge solutions for next-generation products, and alternative sustainable materials”.

    The FIC is part of Filtrona’s global network of innovation centers in Asia and Europe. Filtrona’s presence in Indonesia dates to 1976, when it established a site in Medan, North Sumatra. It moved to its current site in Surabaya in 1987.

  • Nollywood to Show Tobacco Warnings

    Nollywood to Show Tobacco Warnings

    Image: alexlmx

    The Nigerian government will adopt new measures to limit how tobacco can be depicted in Nollywood, one of the world’s largest film industries, according to the Campaign for Tobacco-Free Kids.

    The first such measure in Africa, the new rules require filmmakers to display health warning labels at the beginning and end of films depicting tobacco or nicotine. In addition, they will have to show health warnings during scenes that depict tobacco or nicotine use.

    Filmmakers may not include tobacco or nicotine brands on screen and prevent any brand marketing in their products.

    The measures cover movies, music videos and skits produced in Nollywood.

    Last year, India became the first country to regulate how tobacco use could be depicted on streaming platforms.

    In February, the parties to the World Health Organization Framework Convention on Tobacco Control adopted measures to restrict tobacco advertising in entertainment and social media.

    A recent report by the Truth Initiative suggests that tobacco imagery has been surging in social media, in music videos and in movies.

  • New Sampoerna Boss: Workforce has Value

    New Sampoerna Boss: Workforce has Value

    Ivan Cahyadi
    (Photo: Sampoerna)

    Ivan Cahyadi, the new president director of Sampoerna, emphasized the company’s commitment to human capital development during a May 14 media meeting reported by The Jakarta Post.

    Celebrating its 111th anniversary, Sampoerna prioritizes human capital as crucial for business sustainability and societal well-being in Indonesia. Cahyadi, who began his career at Sampoerna in 1996, credits the company’s development programs for his rise to leadership. Sampoerna’s policy of job rotation and training across various departments enabled him to understand the business comprehensively.

    Sampoerna’s human capital initiatives include job rotation, overseas assignments and training, fostering an inclusive environment irrespective of ethnic or cultural backgrounds, according to Cahyadi. This approach has positioned Indonesians among global scientists and experts in innovative tobacco products. The company also operates advanced laboratories in Karawang and Pasuruan, enhancing local talent’s potential.

    Cahyadi highlighted Sampoerna’s support for traditional retailers through the Sampoerna Retail Community program, which aids 250,000 micro, small, and medium enterprises (MSME), boosting their competitiveness and economic impact.

    Additionally, the Sampoerna Entrepreneurship Training Center has trained over 72,000 MSME players in various business skills. Emphasizing gender balance, Ivan noted that women represent 46 percent of department heads. Sampoerna’s commitment to human capital aligns with its “Three Hands” philosophy, aiming to advance Indonesia collectively through sustainable business practices.

  • High Leaf Prices Luring Growers in Bangladesh

    High Leaf Prices Luring Growers in Bangladesh

    Photo: Taco Tuinstra

    High prices have been attracting more growers to tobacco production in Bangladesh’s Lalmonirhat District despite reservations about the crop within the Department of Agriculture, reports The Financial Express.

    While tobacco is a notoriously laborious crop, farmers say its relatively low cost of production combined with the prevailing strong global demand make it financially more attractive than many other crops.

    According to the Department of Agricultural Extension (DAE), farmers have cultivated tobacco on nearly 10,000 hectares of land in five administrative regions of the Lalmonirhat District, but farmers’ sources claim the figure to be higher.

    “We are always motivating farmers not to cultivate tobacco,” said DAE Deputy Director Shaikhul Arefin. “But farmers are doing it only for good price. In recent years, maize farming has taken the place of tobacco farming in many areas. If fair prices can be ensured for other traditional crops, tobacco farming will reduce gradually.”

  • Brazil Mulls Higher Minimum Price

    Brazil Mulls Higher Minimum Price

    Photo: Taco Tuinstra

    Brazil’s plans to raise the minimum cigarette price, reports Reuters, citing a government source. The goal is reportedly to offset losses from tax benefits granted to companies in some sectors and small municipalities.

    Brazilians now pay at least BRL5 ($1) for a pack of 20 cigarettes.

    The finance ministry’s executive secretary, Dario Durigan, told reporters the government was not raising taxes on cigarettes. He did not comment on the reports of plans to raise the minimum price to sell them.

    Finance Minister Fernando Haddad said on May 27 that measures to increase revenue are ready and that the government is considering whether to send them to Congress this week or next via an executive order.

  • Bidi Workers Demand Better Conditions

    Bidi Workers Demand Better Conditions

    Photo: Brandy Brinson

    During a public meeting in Rangpur, Bangladesh, representatives of the Bidi Workers Federation presented several demands for improving their working conditions, reports the Daily Sun.

    Among other things, they want multinationals to increase the price of low-end cigarettes from BDT45 ($0.38) to BDT65 per pack and the government to close down illegal bidi factories. The bidi workers also demanded a halt to “the brokering” of BAT.

    Rangpur Mayor Mostafizar Rahman, who also spoke at the gathering, urged the government to protect the bidi industry from “the conspiracies of international companies.”

    He highlighted that approximately 2 million workers across the country earn their livelihood by working in bidi factories. Rahman advocated for wage increases, the withdrawal of duties on bidi products and for the bidi industry to be declared a cottage industry, a designation that would give companies operating in this sector access to low-interest loans and subsidies on raw materials, among other benefits.

    recent survey revealed that many bidi workers in Bangladesh are dissatisfied with their working conditions.

  • BAT Kenya Ups Leaf Price to Secure Supply

    BAT Kenya Ups Leaf Price to Secure Supply

    Photo: Taco Tuinstra

    BAT Kenya is paying more for leaf to ensure the security of its supply, reports Business Daily Africa.

    In fiscal year 2023, the cigarette manufacturer increased its per-kilo price by 5 percent to KES198.75 ($1.50) even as the number of contracted farmers dropped to 1,672, down nearly 20 percent from the previous fiscal year.

    Only five years ago, BAT had access to 5,700 tobacco growers in Kenya. The drop has been driven in part by farmers abandoning tobacco in favor of alternative crops such as beans and maize, along with pressure from anti-smoking activists.

    To help stem the decline, the company has been offering free tobacco seedlings, fertilizer and personal protective equipment. In addition, it has encouraged crop diversification by issuing farmers subsidized maize and avocado seeds, allowing them to earn extra income without abandoning tobacco.

    The company has also been introducing hybrid tobacco seed varieties to boost crop yields and disease resistance, and low-cost technologies such as mechanized ploughing and ridges to help growers cut cost and maximize returns.

    BAT Kenya paid KES954 million for its total tobacco requirements in 2023 compared with KES946 million in 2022. Last year, it purchased 4.8 million kg of leaf, down from 8.9 million kg in 2019.