Author: Taco Tuinstra

  • JT USA to Move to North Carolina

    JT USA to Move to North Carolina

    Photo: Les Palenik

    JT International USA (JTI USA) will relocate its U.S. headquarters from Teaneck, New Jersey to Raleigh, North Carolina.

    The headquarters will open later this year in One North Hills Tower at North Hill in Midtown Raleigh.

    “It’s great to see another international company choose North Carolina for its top-flight workforce, number one business environment and extraordinary quality of life,” said North Carolina Governor Roy Cooper in a statement.

    JTI’s group of companies currently operates a tobacco buying station in Wilson, North Carolina, and contracts with hundreds of farms in the state.

    “We are proud to welcome JTI’s leadership and headquarters to North Carolina,” said Agriculture Commissioner Steve Troxler. “As a leading buyer of North Carolina tobacco, this move to Wake County is a great sign of their long-term interest in working with our growers and will help us further build on this important trade partnership.”

    “I am pleased to welcome JTI and the more than 100 high-paying jobs they are bringing to Raleigh,” said Mayor Mary-Ann Baldwin. “Their decision to move their headquarters here clearly demonstrates the quality of life we offer and the quality of our talent pool. We wish them much success in the future.”

    “We are very excited to be joining Raleigh’s diverse community. Raleigh is an ideal location for our new headquarters because it is a vibrant and growing city with a top of its class talent pool for recruitment of new employees,” said JTI USA General Manager and President Corrado Mautone.

    JTI USA sells brands such as LD, Wave, Wings and Export A. The company employs more than 250 people across the U.S.

  • MRTP Renewal Application Filed

    MRTP Renewal Application Filed

    Photo: elenavah

    The U.S. Food and Drug Administration on May 9 filed for scientific review modified risk tobacco product (MRTP) renewal applications submitted by Philip Morris Products for the following IQOS products: 

    • IQOS 2.4 System Holder and Charger
    • IQOS 3.0 System Holder and Charger
    • Marlboro Amber HeatSticks (formerly named Marlboro HeatSticks)
    • Marlboro Green Menthol HeatSticks (formerly named Marlboro Smooth Menthol HeatSticks)
    • Marlboro Blue Menthol HeatSticks (formerly named Marlboro Fresh Menthol HeatSticks)

    In 2020 and 2022, the FDA issued modified risk granted orders for products. These orders are valid for a fixed time period. To continue marketing the MRTPs after the authorized term, the company submitted MRTP renewal applications to FDA.

    Starting May 10, 2024, people may submit public comments on these applications on regulations.gov to docket FDA-2021-N-0408 for the IQOS 3.0 device and docket FDA-2017-D-3001 for the IQOS 2.4 device and the Marlboro HeatSticks products.

    The FDA will post application documents, including amendments; given that the documents will need to be redacted for any confidential information, they will be posted on the Center for Tobacco Products’ website on a rolling basis.

    Once all materials for these MRTP applications, including amendments, have been made publicly available, FDA will announce a closing date for the comment period. The closing date will be no earlier than 180 days from the date of the Federal Register notice and at least 30 days from the date FDA posts the last application materials.

  • Revenue and Profits up at Japan Tobacco

    Revenue and Profits up at Japan Tobacco

    Photo: JTI

    Japan Tobacco’s revenue increased by 11.3 percent to ¥740.3 billion ($4.75 billion), year-on-year, in the first quarter of 2024. Core revenue at constant currency exchange rates rose by 5.7 percent to ¥676.7 billion while adjusted operating profit at constant exchange rates increased by 3.4 percent to ¥231 billion.

    On a reported basis, adjusted operating profit increased by 1.5 percent to ¥226.7 billion. Operating profit increased by 4.6 percent to ¥215.8 billion, and profit increased by 8.7 percent to ¥157.3 billion.

    “The JT Group delivered robust results in the first quarter,” said President and CEO Masamichi Terabatake in a statement. “GFB [global flagship brands] volume growth and solid pricing, as well as RRP [reduced-risk product]-related revenue increasing by double-digits in the tobacco business, continued to drive the strong performance of the group.”

    “RRP volume increased by 25.2 percent year-on-year, mainly driven by the HTS [heated-tobacco sticks] segment, which is our investment priority. Geo-expansion of Ploom X is on track; we have completed launches in four additional markets year-to-date. With plans to launch in four more markets by June, we are making good progress to deliver our ambitions set for 2028.”

  • PMI Holds Annual Shareholders Meeting

    PMI Holds Annual Shareholders Meeting

    Photo: PMI

    Philip Morris International held its 2024 annual meeting of shareholders on May 8. Andre Calantzopoulos, executive chairman of the board, addressed shareholders and answered questions. CEO Jacek Olczak gave a business presentation commenting on PMI’s 2023 performance and progress in its transformation to a smoke-free business.

    “Our strategy to become a smoke-free company has enabled us to build and sustain strong momentum, resulting in smoke-free products reaching nearly 40 percent of our total net revenues and over 40 percent of our gross profit in the fourth quarter of 2023,” said Olczak in a statement.

    “As a global smoke-free champion with leading brands IQOS and Zyn, we are well positioned to further accelerate our transformation in the years to come, to the benefit of the company, our shareholders, other stakeholders and public health.”

    Approximately 80 percent of the shares entitled to vote were represented at the meeting in person or by proxy. The shareholders elected 12 nominees for director; approved, on an advisory basis, the compensation of named executive officers; and ratified the selection of PricewaterhouseCoopers as independent auditors.

    An archived copy of the webcast of the meeting is available at www.virtualshareholdermeeting.com/PM2024.

  • Procigar Elects New Leadership

    Procigar Elects New Leadership

    Photo: sururu

    Procigar has elected Litto Gomez of La Flor Dominicana as its new president and Ciro Cascella as its new vice president, according to the Premium Cigar Association.  Hendrik Kelner was named president for life due to his dedication to the development of the organization.

    Procigar was formed in 1992 by a group of cigar makers in the Dominican Republic. The goal of this group is to protect the reputation and future of the Dominican Republic’s tobacco industry by setting and maintaining high standards of quality and preserving the heritage of their country’s premium cigar and tobacco culture.

    Members of Procigar include General Cigar Dominicana, La Aurora, Quesada Cigars Oettigner Davidoff, Tabacalera de Garcia, Tabadom Holding, De Los Reyes Cigars, Tabacalera Arturo Fuente, Tabacalera La Alianza, La Flor Dominicana, Oe Tabacalera Palma, PDR Cigars and Arnold Andre.

    Each year, the Procigar hosts an international festival in the Dominican Republic celebrating the country’s cigar culture and tobacco industry.

  • Scientist Urges Caution With AI Vaping Studies

    Scientist Urges Caution With AI Vaping Studies

    Marina Murphy is a scientific communications and engagement expert with more than 20 years of experience.

    Scientists should be aware of the “illusions of understanding” when relying on artificial intelligence for their research, warned Marina Murphy, industry veteran and scientific adviser to the U.K. Vaping Industry Association.

    A recent study, published in Scientific Reports, claims to have uncovered potentially harmful substances that are produced when e-liquids in vaping devices are heated for inhalation.

    The research team at the Royal College of Surgeons in Ireland (RCSI) University of Medicine and Health Sciences, Dublin, used artificial intelligence to simulate the effects of heating e-liquid flavor chemicals found in nicotine vapes.

    The analysis revealed the formation of many hazardous chemicals, including 127 that are classified as “acute toxic,” 153 as “health hazards” and 225 as “irritants.” Notably, these included a group of chemicals called volatile carbonyls (VCs), which are known to pose health risks. Sources for VCs were predicted to be the most popular fruit-flavored, candy-flavored and dessert-flavored products.

    Lead author Donal O’Shea, professor of chemistry and head of the department, said the findings are concerning. “Our findings indicate a significantly different profile of chemical hazards compared to what we are familiar with from traditional tobacco smoking. It is plausible that we are on the cusp of a new wave of chronic diseases that will emerge 15 [years] to 20 years from now due to these exposures.”

    Murphy countered that the effects of overheating e-liquids have been studied extensively. “This can lead to the production of carbonyls, for example, but these compounds make the vapor so caustic as to be un-inhalable,” she wrote in response to the RCSI study. “Newer e-cigarette devices are designed with built-in temperature control systems.”

    She warned that “scary headlines” could prompt smokers thinking of switching to less harmful e-cigarettes to stick with conventional cigarettes instead.

    “Vaping has proven to be the most popular quit aid, and we need to focus less on problems and more on solutions to ensure that vapers continue to get the flavors they need to successfully quit cigarettes in the safest way possible,” said Murphy.

  • KT&G Reports Robust Overseas Performance

    KT&G Reports Robust Overseas Performance

    Photo: KT&G

    KT&G Corp. reported consolidated revenue of KRW1.29 trillion ($942.27 million) and operating profit of KRW236.6 billion for the first quarter ended March 31, 2024.

    The South Korean cigarette manufacturer’s overseas and domestic next-generation product (NGP) and overseas cigarette sectors sustained robust performances in the quarter, extending their trend from the previous year.

    Overseas NGP stick volume grew by 14.7 percent, reaching 2.11 billion sticks.

    KT&G also achieved its third consecutive quarters of revenue growth in the overseas cigarette business, driven by strategic pricing in core growth markets such as Indonesia. KT&G’s first-quarter overseas cigarette revenue recorded KRW291.8 billion, up 10.1 percent from the comparable 2023 quarter.

    While the company delivered notable results in core business areas, its consolidated revenue and operating profit for the first quarter decreased compared to the same period last year. This downturn was mainly driven by rising manufacturing costs, the completion of large-scale real estate development projects and reduced revenue from the health functional food sector amid lower consumer spending.

    “KT&G is committed to strengthening its competitiveness in core business areas and driving a business transformation aimed at making a significant leap forward to become a ‘global top-tier company,’” KT&G wrote in a press release.

    “Despite a number of headwinds, such as inflation-driven manufacturing cost pressure and economic recession, KT&G is striving to achieve a business turnaround in the second half of the year by strengthening global competitiveness and pursuing operational efficiency optimization.”

  • British MPs Alerted to Misinformation

    British MPs Alerted to Misinformation

    Photo: Yeti Studio

    The U.K. Vaping Industry Association (UKVIA) has issued a series of letters to Members of Parliament (MPs) to raise concerns over “misleading, incomplete, unsubstantiated, or incorrect” information, which the group says was presented to the Tobacco and Vapes Bill Committee.

    “We are writing to express our grave concerns at the quality and accuracy of some of the oral evidence presented to what turned out to be a mainly one-sided committee stage of the Tobacco and Vapes Bill,” the organization wrote to lawmakers.

    “Because the evidence was mainly given by those who have spoken out against vaping in the past, it presented a very skewed message, which often conflated the legal compliant vape industry with the black market and frequently made no distinction between the tobacco and vaping industries.”

    The UKVIA insisted that it did not intend to defeat, delay or circumvent the legislation. Rather, the trade group wants to ensure that when MPs consider the bill, they are doing so from an informed perspective. “In scrutinizing this bill, MPs must balance the rights and needs of adult smokers to have access to the very best products to help them quit, with those of young people to be protected from age-restricted products, including vaping,” the group wrote.

    Alongside the letter, the UKVIA has also issued a report that reviews some of the evidence presented by those who were invited to speak during the committee stage of the bill.

  • Turkish Smokers Fret About Latest Price Hikes

    Turkish Smokers Fret About Latest Price Hikes

    Photo: lial88

    Cigarette prices in Turkiye increased by TRY3 ($0.9) on May 8, sparking lively discussion among smokers on social media, according to Xinhua.

    The cheapest cigarette brands registered with the Monopoly Dealers’ Solidarity Association now cost TRY53 per pack, while the most expensive one is priced at TRY75 liras per pack, according to association president Erol Dundar.

    “Though a three lira increase per pack might appear to be a small amount, it is not so for smokers,” said Yagmur Sivri, a resident of Istanbul, who smokes one and a half packs of cigarettes a day and spends about TRY2,500 on smoking each month.

    “Considering that millions of people in Turkiye live on a minimum wage of 17,002 liras, the latest price hikes put a very large burden on their budgets,” she said.

    The price hike aggravates Turkiye’s already rapidly increasing costs of living. The country’s  inflation hit 69.8 percent in April.

  • Zimbabwean Shisha Crop Selling Rapidly

    Zimbabwean Shisha Crop Selling Rapidly

    Photo: Cavendish Lloyd

    Growers of shisha tobacco in Zimbabwe sold more than a third of their crop within four days, reports The Herald, citing figures from the Tobacco Industry and Marketing Board (TIMB).

    The farmers pocketed $660,000, earning an average price of $3.62 per kilogram. Out of 2,385 bales presented, 162 bales, or 6.79 percent, were rejected by buyers. The current average price is 15 percent higher than the 2023 season average.

    Nonetheless, the figures make shisha tobacco less profitable for growers than flue-cured tobacco, according to Zimbabwe Tobacco Growers Association Chairman George Seremwe, although he acknowledges that producing shisha leaf is less capital intensive.

    While shisha is a type of flue-cured tobacco, it is derived from imported seeds and produced using different agronomic practices. To obtain the desired low nicotine levels, the tobacco fields are planted much more densely than is typical with cigarette tobaccos, ensuring fierce competition among the plants for nutrients.

    Cavendish Lloyd is the only shisha leaf merchant registered and licensed with the TIMB. Tobacco Reporter profiled the company in its May 2022 print edition (see “Great Expectations”).