Author: Taco Tuinstra

  • Ispire Net Loss Widens to $5.6 Million

    Ispire Net Loss Widens to $5.6 Million

    Image: Nawarit

    Ispire Technology reported revenue of $39.3 million for the first quarter of 2025, down from  $42.9 million in the comparable 2024 quarter. Gross profit increased 13.2 percent to $7.7 million. Net loss was $5.6 million as compared to net loss of $1.3 million in the fiscal first quarter of 2024.

    “Our results from the fiscal first quarter of 2025 reflect our commitment to our growth strategy of becoming the leading innovative vaping technology and precision dosing solutions company worldwide,” said Inspire Co-CEO Michael Wang in a statement.

    “While our financial results were slightly impacted due to the strategic shifts we have made in our U.S. business to focus on high-quality customers and to improve payment terms and gross profit, I am pleased with our team’s overall performance given the challenging macroeconomic environment and look forward to the remainder of fiscal 2025 and the opportunities that lay ahead.”

    According to Wang, Ispire continues to make progress with its point-of-use age gating technology. He also expressed excitement about the recent expansion of Ispire’s global reach through a five-year master distributor agreement with ANDS for the Middle East and North Affrica region and global duty-free markets

    “The results from our fiscal first quarter were in line with our internal projections as we shifted our U.S. strategy while we also had a few delayed shipments which impacted our quarterly results,” said Ispire Chief Financial Officer Jim McCormick.

    “As we head into the remainder of fiscal 2025, we are confident that we are well-positioned to continue delivering value to our shareholders as we advance our mission of becoming a global leading provider of innovative vaping technology and precision dosing solutions.”

  • Boredom, Relaxation Top Drivers of Teen Vaping

    Boredom, Relaxation Top Drivers of Teen Vaping

    Boredom, relaxation and experimentation are the key drivers of teen vaping, according to new research from University of Michigan (U-M).

    Published in Pediatrics, the study “Reasons for Vaping Among U.S. Adolescents” examined data from in-school surveys of U.S. students in eighth, 10th and 12th grades.

    “Vaping has become the primary way that adolescents use nicotine,” said author Megan Patrick of U-M’s Institute for Social Research. “Understanding why adolescents vape is important for figuring out how to reduce and prevent nicotine use among teenagers.”

    Of the 5,082 respondents, data showed relaxation was the most common reason cited, no matter the grade or frequency of vaping. Boredom landed in the top three reasons across frequency groups as well.  

    Among 12th graders who reported vaping near-daily, a third said they vaped to feel good or because it is more convenient than cigarettes. Less than 10 percent of that same group said vaping helped them quit smoking cigarettes.

    Near-daily vaping in the past 30 days was reported by 1.7 percent of eighth graders, 4.2 percent of 10th graders and 7.8 percent of 12th graders. “Relaxation” emerged as the top reason for vaping, cited by nearly half of adolescents who vaped in the past year and over 70 percent of near-daily vapers.  

    The study stresses the importance of understanding the diverse reasons behind teen vaping, particularly the significant role of stress relief. Given that a large proportion of near-daily vapers use vaping to relax, incorporating mental health support into prevention programs is crucial.

    “Our findings illustrate a shift over the past decade in the reasons adolescents vape, moving from experimentation to stress relief and relaxation, highlighting key areas for intervention,” Patrick said.

    Other frequently mentioned reasons include “experimentation” and “boredom,” with “taste” also ranking high. Among near-daily vapers, significant numbers noted they vaped to “feel good” or because it is “more convenient than cigarettes,” with a smaller percentage aiming to “help quit cigarettes.”

    “Among the adolescents who vape near-daily, 43 percent report that they vape because they are hooked or have to have it,” Patrick said. “The fact that so many adolescents feel addicted to nicotine is concerning. Another reason, reported by almost one in five near-daily vapers, was to manage their weight. Additional research is needed on this, but parents and health care professionals should be aware that many adolescents are vaping to try to lose weight or control their weight.”

    The authors of the study argue that screening for stress and anxiety should be conducted alongside nicotine screenings to provide early intervention. These experts also noted a shift in why adolescents are vaping, as 2015 data listed relaxation as only the fifth most common reason.

    They argue further research is needed to understand those adolescents vaping for weight management—reported by nearly a fifth of 12th graders who vaped near-daily.  

    The research was funded by the National Institute on Alcohol Abuse and Alcoholism and the National Institute on Drug Abuse.

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  • Ondato Launches Age-Verification System

    Ondato Launches Age-Verification System

    Image: Ondato

    Ondato has launched a reusable age-verification solution, called OnAge.

    The technology is designed to streamline age-restricted access and ensure user anonymity for digital platforms. Combining AI device recognition with biometric algorithms, the system enables companies to determine the ages of their users with 98.7 percent to 100 percent accuracy and use the results of the verification for subsequent visits, eliminating friction in granting users repeat access, according to Ondato.

    Because the system retains only the user’s age eligibility status after verification, it complies with the strictest privacy and security standards. In addition, OnAge can be implemented into any website or app without requiring additional downloads from users.

    “We’re excited to launch OnAge as a response to both regulatory needs and user demands for a more seamless, secure age-verification solution,” said Liudas Kanapienis, CEO and co-founder of Ondato.

    “Our OnAge solution combines cutting-edge AI and biometric technology to ensure age compliance in a way that doesn’t compromise user experience or data privacy while keeping verification costs lower than other similar solutions. By introducing reusable verification, we’re making it easier for companies to protect minors while offering users a smoother, faster process.”

    One of the advantages of OnAge is reusable verification, which allows businesses to save costs and spares customers the hassle of repeated verification each time they want to access restricted content or services.

    After verifying their age once, users can create a four-digit PIN to access age-restricted content for a specified period, as set by the platform.

  • Top Court Strikes Down Vape Import Ban

    Top Court Strikes Down Vape Import Ban

    Image: nanoenomar

    Mexico’s ban on imports of e-cigarettes and related products is unconstitutional, the nation’s top court ruled, reports Meganoticias.

    The First Chamber of the Supreme Court of Justice of the Nation determined that the prohibition imposes excessive restrictions on commercial freedom of Philip Morris Mexico.

    The ruling is limited to Philip Morris Mexico and does not affect similar products that could be brought to market in the future.

    It protects Philip Morris Mexico from future restrictions and sets a legal precedent that could influence future litigation. The judgment specifies that this protection will be maintained until the government amends its General Import and Export Taxation Act.

    According to the Mexican government, an estimated 938,000 teenagers have tried electronic nicotine delivery systems, and about 160,000 use them regularly

    Despite the import ban, vaping has spread rapidly. In 2023, there were an estimated 2.1 million e-cigarette users in Mexico, compared with 975,000 in 2019.

    The Philip Morris Mexico case stems from an October 2022 Supreme Court ruling that deemed some prohibitions on ENDS unconstitutional and allowed certain groups to apply  for permission to continue the import and sale of these products.

  • KT&G Rejects Offer for Ginseng Business

    KT&G Rejects Offer for Ginseng Business

    Image: Photobeps

    KT&G rejected an offer by Flashlight Capital Services (FCP) to purchase its ginseng business, reports Business Korea.

    On Nov. 8, KT&G sent a response to FCP’s letter of intent. “We will do our best to foster the three core businesses, including health functional foods,” it stated.

    “Last year, we announced a mid-to-long-term growth strategy to foster health functional foods along with overseas cigarettes and NGP [next-generation products] as our three core businesses, and we will do our best to achieve these goals,” a KT&G official emphasized.

    On Oct. 14, KT&G also issued a statement dismissing FCP’s acquisition proposal, stating, “FCP’s acquisition proposal was unilaterally disclosed without any discussion with us.”

    In its letter of intent, FCP offered to acquire all KGC’s shares for nearly KRW2 trillion ($1.47 billion), which represents a 50 percent premium over the enterprise value mentioned by some analysts during KT&G’s 2023 investor day.

    Industry insiders believe the likelihood of the transaction being completed is low, given KT&G’s shareholding structure.

  • Chandrasiri Joins Ceylon Tobacco Board

    Chandrasiri Joins Ceylon Tobacco Board

    Image: Ink Drop

    BAT subsidiary Ceylon Tobacco Co. has appointed Samanmalee Chandrasiri as a non-executive director to its board, reports EconomyNext.

    A globally experienced professional with nearly two decades of expertise in human resources, Chandrasiri started her career in 2006 with HR business partnering roles at BAT Sri Lanka.

    As BAT South Asia area head of talent, she managed talent strategies across Pakistan, Bangladesh, and Sri Lanka. This led to her position as organization effectiveness advisor in BAT Indonesia.

    She served as HR director for BAT Sri Lanka and for Malaysia and Singapore.

    She assumed duties as group head of organization effectiveness and talent management in July 2019, operating from London.

    Chandrasiri served as group head of HR for global marketing, scientific research and development before taking the role of group head of talent, organization effectiveness and inclusion (London), where she led the global center of expertise on talent, organization effectiveness, diversity and inclusion

    In October 2024, she stepped into her current role as group head of HR and inclusion—global operations and R&D.

     

  • Tax Hike Boosts ‘Tobacco Tourism’

    Tax Hike Boosts ‘Tobacco Tourism’

    Image: Antony McAulay

    A recent tobacco tax hike in the Netherlands has boosted tobacco tourism to Luxembourg, reports The Luxembourg Times.

    Dutch smokers have been chartering buses to stock up on cigarettes in the Grand Duchy, where cigarettes are considerable cheaper than in surrounding countries.

    For regular smokers, a trip to Luxembourg can be very profitable. Passengers on one such bus said the journey, which takes six hours one way, costs around €40 per person and allowed them to save between €400 and €500 on cigarette purchases in just one trip.

    The Netherlands allows smokers to bring up to four cartons of cigarettes from one EU country.

    According to De Telegraaf, the tax-fueled increase in demand has led to the bus operator to expand its schedule.

    Luxembourg is not the only country attracting tobacco tourists. A few months ago, Le Parisien reported on a similar excursion from the Toulouse region to Andorra, where taxes on tobacco and alcohol are much lower than in France.

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  • JTI Turkey to Invest in Torbali

    JTI Turkey to Invest in Torbali

    Japan Tobacco International will invest $40 million over the next three years in its Torbali factory in Turkey, reports Merhaba.

    “We are constructing a new tobacco processing building, and the installation of two cigarette manufacturing machines has been completed,” said JTI Turkey Engineering Director Barış Tevattepe. “Our solar energy installation plans have also started as part of our sustainability goals.”

    Located on 250 acres with 94,000 square meters of covered space, Torbali is the third-largest factory in the JTI network, according to Tevattepe.

    According to JTI Turkey Regional Operations Leader Wojciech Odzimek, many innovations within JTI originated in Torbali. “We lead the industry in exports,” he said. “This facility is also a talent pool and center of excellence for JTI. Many individuals trained here have the opportunity to work in JTI’s factories in other countries. We have a team of 2,900 people in Turkey, generating great value for the country and region through production, employment, exports and taxes.”

    JTI Turkey Production Director Sarper Ege Ulukaya expects a record production volume at Torbali this year. “We are set to reach 54 billion units, with 28 percent of this being exported,” he said.

    “We are also growing in the domestic market. Our factory has improved efficiency through integrated management systems. We started these efforts in 2020 and achieved a 3 percent performance increase, which significantly contributed to our production records. Other JTI facilities come here to observe best practices. We have a young team, making it easy to adapt to innovations.”

  • Bangladesh Fulfills Small-Pack Export Order

    Bangladesh Fulfills Small-Pack Export Order

    Image: PX Media

    Bangladesh fulfilled a cigarette export order that failed to obtain regulatory approval in Pakistan, reports Profit.

    The order came from Blue Nile Cigarette Co. (BNCC), a subsidiary of British American Tobacco in Sudan, which in the midst of a civil war. To ensure continuity of supply, BNCC ordered $20.5 million worth of cigarettes from Pakistan Tobacco Co. (PTC), another BAT subsidiary. In line with local market preferences, the BNCC order required the cigarettes to be delivered in packs of 10 sticks.

    However, Pakistan is one of more than 80 countries that require cigarettes to be sold in packs of at least 20 sticks, a measure that health advocates believe will make tobacco less accessible to underage buyers. Because Sudan has no such restrictions, PTC asked the government to exempt the export order from Pakistan’s 20-stick minimum.

    Despite support from Prime Minister Shehbaz Sharif and the Special Investment Facilitation Council, delays in decisionmaking at the ministry of health and fierce opposition from anti-tobacco activists, prompted BNCC to look for other suppliers.

    The issue attracted considerable attention from health groups. The African Tobacco Control Alliance, for example, urged Pakistan to withhold permission for the export order, arguing that the 20-cigarettes- per-pack rule is the global standard for the protection of children.

    PTC’s senior regulatory affairs manager, Qasim Tariq, said the company’s critics misinterpreted certain clauses of the World Health Organization’s Framework Convention on Tobacco Control (FCTC).

    “Ironically, the neighboring country that ultimately won the contract is also an FCTC signatory, like Pakistan and Sudan,” Tariq told the Associated Press of Pakistan. “This incident illustrates the harmful effects of misinformation and the economic harm that can arise from the unchecked influence of certain advocacy groups on public policy,” he remarked.

  • Sales and Profits up at TPB

    Sales and Profits up at TPB

    Stoker’s MST continued to grow share while FRE sales more than quadrupled versus last year’s quarter.

    Turning Point Brands (TPB) announced financial results for the third quarter ended Sept. 30, 2024.

    Total consolidated net sales increased 3.8 percent to $105.6 million compared to the third quarter of 2023. Zig-Zag product net sales increased 5.5 percent during the same period. Stoker’s product net sales increased 12.1 percent. Creative Distribution Solutions net sales decreased 17.4 percent.

    Gross profit increased 4 percent to $53.7 million compared to 2023. Net income increased 14.3 percent to $12.4 million. Adjusted net income increased 9.8 percent to $15.9 million. Adjusted EBITDA increased 11.3 percent to $27.2 million.

    “We were pleased by our third-quarter results,” said TPB president and CEO Graham Purdy in a statement. “We believe Zig-Zag is on a sustainable growth trajectory. Stoker’s MST continued to grow market share while FRE sales more than quadrupled versus year-ago and grew 26 percent sequentially as we continue to expand our national footprint.”