Author: Taco Tuinstra

  • UKVIA Forum Kicks Off

    UKVIA Forum Kicks Off

    The U.K. Vaping Industry Association’s (UKVIA) annual Industry Forum will take place at the London Marriott Hotel Regents Park on Friday, Nov. 15.

    The event will feature a program of timely panel discussions, including “Politics in the Spotlight”; “Closing the Trust Gap”; “Adding Consumers to the Conversation”; and “The Balancing Act,” which will explore the best route to further unlock vaping’s potential to improve harm reduction while also protecting young people.

    It will also include a panel discussion titled “Killing the Black Market, Not the Consumers,” which will look at how interventions such as a vape retailer and distributor licensing scheme could put a stop to rogue traders for good and bring about a new age of responsibility and accountability for the sector.

    “The industry has long been calling for stronger action against the unscrupulous sellers who flout the law and put young people, consumers and legitimate businesses at risk, and we were delighted to see the inclusion of licensing in the new government’s Tobacco and Vapes Bill,” said UKVIA Director General John Dunne in a statement.

    “Earlier this year, the UKVIA was involved in the development of a vape retailer and distributor licensing framework, which would prevent inappropriate businesses—including sweet shops—from ever selling these products, would bring into force stronger penalties for those breaking the rules and would generate upward of £50 million [$63.65 million] per year in self-sustaining funding, which could be used to empower Trading Standards.”

    This year’s UKVIA Forum will also feature a keynote on the “new era of enforcement” from Kate Pike, lead officer for vaping with the Chartered Trading Standards Institute, as well as a Q&A with Orla Menzies, the vaping policy lead for HMRC, and—for the first time—an onstage showcase where five companies will discuss how they are adapting their product offerings and leading on innovation across the sector.

  • Sophisticated Illegal Factory Dismantled in Spain

    Sophisticated Illegal Factory Dismantled in Spain

    Image: Paco Ayala

    Authorities dismantled a large a large counterfeit cigarette factory in Spain’s Malaga province, reports Sur.

    Guardia Civil officers confiscated 1,448 packs of counterfeit cigarettes from the facility, which operated 24 hours a day and distributed cigarettes throughout Spain. The illegal factory counterfeited four internationally known brands and had an estimated turnover of €4 million ($4.2 million) a month.

    Police were impressed by the operation’s level of sophistication. The facility was powered by a self-contained generator and stored 500 liters of fuel. To avoid detection, the factory operators had soundproofed the generator and made an exhaust pipe to expel the gases.

    In addition to the finished cigarettes, authorities confiscated a large amount of materials such as paper, filters and machinery, along with printing plates with the names of the commercial brands and packets ready to be assembled.

  • Quartz and PCA Launch Dubai Cigar Show

    Quartz and PCA Launch Dubai Cigar Show

    Quartz Business Events is partnering with the U.S. Premium Cigar Association (PCA) to launch a premium cigar-focused trade show for the international market. The newly created World Cigar Show will take place in Dubai from Nov. 11-12, 2025.

    “We are extremely excited to announce this partnership with the PCA. Perfectly located in Dubai, with the second busiest airport in the world, the World Cigar Show will allow exhibitors to meet a truly global audience,” said Dubai event director Colin Case in a statement.

    “Our team will assist Quartz as an advisor with the experience of putting together our annual trade show in the United States and marketing partner to our associate membership manufacturers. This partnership is an example of a win-win where both entities can complement one another’s specialties to create something unique,” said PCA President Scott Regina.

    The cigar market in Asia was valued at $2.4 billion in 2024 and is expected to grow by 6.8 percent by 2029.

  • Stakeholders Mark Start of Brazilian Tobacco Harvest

    Stakeholders Mark Start of Brazilian Tobacco Harvest

    Photo: SindiTabaco

    Public authorities and representatives of the tobacco supply chain celebrated the Sixth Official Opening Ceremony of the Tobacco Harvest at the Afubra Expoagro Park in Rio Pardo, Rio Grande do Sul, Brazil.

    Afubra President Marcilio Drescher said that, following the recent short crop (see “The Great Scramble”), the sector is anticipating a normal year in terms of quality and productivity. “However, the crop is marketed after harvest and we feel anxious and hopeful in expectation for a good price,” he added.

    SindiTabaco president Valmor Thesing stressed the economic significance of tobacco to the state, and the importance of the integrated tobacco production system. “The opening of the tobacco harvest is a joyful and rejoicing moment that emphasizes the relevance of the tobacco supply chain,” he said in a statement. “It is a century-old crop that generates income and employment, brings in foreign currency and generates taxes.”

    Rio Grande do Sul produces 43 percent of all tobacco in southern Brazil, which in the 2023-2024 growing season harvested 508 million kg. In Rio Grande do Sul alone, tobacco employs almost 70,000 farmers in approximately 200 municipalities.

    Clair Kuhn, secretary of agriculture, livestock, sustainable production and irrigation, highlighted the availability of new financial resources to help growers with irrigation. “Tobacco farmers have never had the chance to get resources from  the government. Now they have that opportunity,” said Kuhn. According to the secretary, 264 projects have already been approved, with an additional 400 undergoing evaluation.

  • Universal Reports Preliminary Results

    Universal Reports Preliminary Results

    Photo: Taco Tuinstra

    Universal Corp. reported preliminary unaudited financial results for the second quarter of fiscal year 2025. Sales and other operating revenue were $710.8 million, operating income was $70.7 million, and net income attributable to Universal Corp. was $27.6 million. Tobacco operations sales and other operating revenues amounted to $630.2 million while tobacco operations operating income totaled $79.3 million.

    “The Universal team delivered another quarter of solid results, driven by strong customer demand from our tobacco operations segment and larger, higher-quality and better-yielding crops in Africa. We believe our tobacco operations segment will continue its strong performance in the second half of our fiscal year,” said Universal Corp. chairman, President and CEO Preston D. Wigner in a statement.

    While presenting preliminary figures, Universal Corp. delayed the release of its second quarter 2025 earnings due to an internal investigation regarding certain allegations related to embezzlement by a former senior finance employee at the company’s Mozambique subsidiary, Mozambique Leaf Tobacco.

    The company has identified approximately $7 million of unauthorized payments during fiscal years 2022 through 2025. Universal Corp. said it intends to pursue sources of recovery, including company-maintained insurance. As of Nov. 12, the firm does not believe the matter under investigation will have a material negative impact on its financial results for fiscal year 2025.

    “Integrity is a core value of ours and a key to everything we do at Universal,” said Wigner. “We are committed to ensuring that this matter is handled appropriately, and we are working to complete this investigation as soon as practicable.”

  • Pyxus International Posts ‘Solid’ Quarter

    Pyxus International Posts ‘Solid’ Quarter

    Photo: AOI

    Pyxus International announced results for its fiscal quarter ended Sept. 30, 2024.

    “We are pleased to report a solid first half, establishing the necessary foundation to achieve strong full-year results,” said Pyxus President and CEO Pieter Sikkel in a statement.

    The company reported second-quarter sales and other operating revenues of $566.3 million compared to $624.3 million for the prior fiscal year’s second quarter. The change versus the prior year primarily reflects a shift in timing of certain shipments, a portion of which were accelerated into the company’s first quarter of the current fiscal year, with shipments being delayed out of the second quarter being expected to benefit second-half results.

    The 9.3 percent reduction in second-quarter revenue compared to the prior-year second quarter was the result of a volume decline of 23 percent, partially offset by a 14.5 percent improvement from pricing driven by cost increases.

    The company’s reported gross profit was $75.4 million in the second quarter compared to $88.7 million in the second quarter of fiscal 2024. This reduction was associated with the shipment of inventory purchased during El Nino market conditions in South America.

  • Study: Online Retailers Fail to Comply With Rules

    Study: Online Retailers Fail to Comply With Rules

    Eric Leas (Photo: University of California San Diego)

     Online e-cigarette retailers are not consistently adhering to laws aimed at preventing the sale of vaping products to minors, including regulations on age verification, shipping methods and flavor restrictions, report researchers at the Herbert Wertheim School of Public Health and Human Longevity Science at University of California San Diego.

    In a study published online on Nov. 11, 2024, in JAMA, researchers asked 16 people to purchase flavored vape products online and have them delivered to their homes in the County of San Diego, then analyzed the results of these attempted purchases. Of 156 attempted transactions 73 percent were processed and 67 percent were delivered.

    As of March 21, 2024, sale restrictions on flavored tobacco have been enacted in eight U.S. states and 392 cities or counties, but some of these do not cover e-commerce. For example, the 2022 California Senate Bill (SB) 793 prohibited the sale of flavored tobacco products but left e-commerce restrictions ambiguous.

    Due to the ambiguity in California law, the researchers aimed to test differences in compliance with local tobacco e-commerce ordinances. Eight buyers were from the City of San Diego, where an ordinance restricts the sale of flavored tobacco products, including online sales. The other eight were from other County of San Diego communities, which do not have the same restrictions. Delivery did not differ significantly between buyers in these two jurisdictions.

    In addition to violations of flavor restrictions, the online purchases violated the Preventing Online Sales of E-Cigarettes to Children Act, a federal law prohibiting the use of the United States Postal Service (USPS) to ship vaping products and requires both age verification and scanning identifications upon delivery.

    “There are longstanding surveillance systems in place that help implement laws at brick-and-mortar stores, but we do not have a system in place for online retailers,” said Eric Leas, an assistant professor at the Herbert Wertheim School of Public Health and Human Longevity Science, in a statement. “The results of this study highlight the need for greater oversight and enforcement of online tobacco retailers.”

    Key findings include:

    • 1 percent of buyers had their IDs scanned
    • 81 percent of deliveries were made via the USPS
    • 9 percent arrived via couriers with policies restricting shipping tobacco, including 4 percent via UPS, 3 percent via FedEx 3.0 percent and 1.8 percent via DHL
    • 78 percent of buyers reported no interaction with delivery personnel
    • 15 percent of buyers spoke with delivery personnel but did not have their IDs checked
    • 6 percent of buyers had their IDs checked but not scanned

    “Online sales of e-cigarettes are the largest and fastest growing sector of the tobacco. We need to evaluate tobacco retail policies and ensure they cover e-commerce and monitor the market to improve implementation,” said Leas, who is also director of the Tobacco E-commerce Lab.

    In a 2023 study published in Tobacco Control, Leas reported that following the implementation of SB-793, online shopping queries were 194 percent higher than expected for cigarettes and 162 percent higher than expected for vape products.

    As a result, to strengthen state tobacco oversight programs, including online sales of flavored tobacco products, California lawmakers recently approved SB-1230, citing Leas’ Tobacco Control study. The law will go into effect on Jan. 1, 2025.

    “This research is piloting a system for monitoring online compliance that local health departments could mimic as a routine surveillance system to strengthen the implementation of public health laws designed to reduce the sale of tobacco products to minors,” said Leas.

     

  • Illicit Trade Hurts PTC’s Sales

    Illicit Trade Hurts PTC’s Sales

    Image: Ali Sher

    Competition from illicit tobacco products caused Pakistan Tobacco Co.’s (PTC) sales to drop by 11.26 percent in the first quarter of the current fiscal year as compared to 2023-2024.

    “The legitimate tobacco industry in Pakistan faces continued challenges as illicit cigarette sales have reached alarming levels,” PTC’s senior regulatory affairs manager, Qasim Tariq, was quoted as saying by the Associated Press of Pakistan.

    During the period under review, PTC sold 6.3 billion cigarettes, against 7.1 billion in the comparable 2023 quarter.

    PTC is not the only organization impacted by illicit trade. In a recent statement to the Senate Standing Committee, the Federal Board of Revenue (FBR) revealed that 50 percent of cigarettes were being sold in Pakistan illegally, causing the government to miss out on much-needed tax revenue.

    Tariq attributes the problem, in part, to excessive tobacco taxation levels. In February 2023, the government increased the Federal Excise Duty by more than 150 percent, driving many smokers to purchase their tobacco on the black market instead. “As a result, there is an estimated PKR300 billion loss to government revenue which is essential for public services, infrastructure and economic development initiatives,” he remarked.

    While commending the FBR for its enforcement efforts against illicit tobacco trade, Tariq emphasized that isolated measures would not be enough to address the problem. He believes that the market for illicit products remains strong due the FBR’s limited resources and inconsistent enforcement at the retail level.

    “PTC strongly advocates for the full and consistent implementation of a track-and-trace system in all regions, including Azad Jammu and Kashmir, to enable authorities to identify and monitor products, reduce tax evasion and ensure only legitimate products reach consumers,” he said.

  • Juul Labs Appoints MD

    Juul Labs Appoints MD

    Image: Cagkan

    Wisdom comes from the Stonegate Group, where she served as chief commercial officer. Prior to that, she also served as a commercial director at Diageo and held senior positions at prominent national and global brands.

    In her new role, Wisdom will oversee all Juul Labs U.K. commercial activities as the company seeks to bring its next-generation product technology to more parts of the world.

    “Joining Juul Labs as its new managing director is an exciting opportunity to contribute to the company’s bold vision for the future—one where long-term success is achieved through responsible innovation and investment in high-quality, scientifically supported products,” said Wisdom in a statement.

    “I look forward to advancing Juul’s commercial objectives across this rapidly changing industry to ensure we are delivering the best possible alternatives for adult smokers whilst taking serious action to prevent underage access to and appeal of our products.”

    “We are thrilled to welcome Melissa Wisdom as Juul Labs’ new managing director,” said Juul Labs CEO K.C. Crosthwaite. “Melissa’s extensive commercial experience and her commitment to responsible growth in consumer markets make her an invaluable addition to the team.

    “With new U.K. legislation coming down the track and the regulatory environment evolving in many markets, Melissa’s leadership will play a pivotal role in advancing our efforts to drive tobacco harm reduction by offering adult smokers high-quality product technology designed specifically to help them move away from traditional cigarettes.

    “I am confident that Melissa will be a huge asset at this exciting time of opportunity for the company.”

  • ‘Switchers’ See Improved Respiratory Health

    ‘Switchers’ See Improved Respiratory Health

    Image: leszekglasner

    People who switch from smoking to vaping see improved respiratory health, but people who begin consuming electronic cigarettes while continuing to smoke regular cigarettes do not report improved respiratory symptoms, according to a new paper in Nicotine and Tobacco Research, published by Oxford University Press.

    Adults increasingly use electronic cigarettes to try to quit smoking because of the perceived reduced risk. But while vaping reduces exposure to toxic chemicals, it has been unclear whether switching from cigarettes to e-cigarettes results in a reduction of the respiratory problems—like wheezing and coughing—common in regular cigarette smokers.

    Researchers used data from the Population Assessment of Tobacco and Health (PATH) study, a national longitudinal measure of tobacco use in the United States performed by the National Institutes of Health. The investigators here observed adult participants between 2013 and 2019 who reported smoking cigarettes exclusively at the beginning of the investigation and reported a baseline cough or wheeze.

    The researchers divided the subjects into four groups: those who transitioned from exclusive cigarette smoking to quitting nicotine altogether, those who switched from cigarette smoking to vaping exclusively, those who continued to smoke cigarettes only, and those who kept smoking and also began vaping. 

    Completely switching from cigarettes to e-cigarettes led to a moderate increase in the resolution of wheeze symptoms compared with persistent smoking. However, there were lower rates of respiratory symptom resolution among those transitioning to vaping while maintaining or increasing their smoking.

    Among 5,210 subjects with a baseline cough, 3,362 (65 percent) saw their coughs go away. Of the 5,367 people who reported a baseline wheeze, the researchers observed that 2,862 (53 percent) saw improvements. Switching from cigarettes to e-cigarettes exclusively resulted in significantly reduced wheezing but not cough resolution. Transitioning to both smoking and vaping (versus just continuing to smoke cigarettes) was not associated with respiratory improvement overall or even among participants who reduced their cigarette smoking intensity.

    The researchers note that the rates of symptom resolution were 14 percent lower (for cough) and 15 percent lower (for wheeze) among those who switched to dual use and maintained or increased their smoking intensity; those who started using electronic cigarettes while continuing to smoke the same number of regular cigarettes saw their wheeze and coughing get worse.

    Switching from smoking cigarettes to quitting nicotine altogether was, perhaps unsurprisingly, associated with the best improvements in both coughs and wheezing.