Author: Taco Tuinstra

  • Reclaiming the Initiative

    Reclaiming the Initiative

    Photo: CME Automation Systems

    Boosting efficiencies may help tobacco companies cope with tough times, according to CME Automation.

    Contributed

    Paul Knight

    Cigarette manufacturers should scrutinize their manufacturing processes and “go the extra mile” to maximize efficiencies in response to difficult market conditions, says Paul Knight, CEO of CME Automation.

    Severe supply chain disruptions, climate factors such as El Nino and climate change in general, in addition to ever more stringent regulation, are posing significant challenges for cigarette manufacturers—particularly over the past year.

    In its position as an automated systems supplier for the sector, CME Automation is highlighting how cigarette manufacturers are responding to these pressures by maximizing efficiencies in raw material usage—seeking to “soften the blow” of these global factors.

    “Whilst most sectors are struggling in some capacity, the tobacco and cigarette markets are particularly vulnerable when you consider the global nature of the market in combination with ever increasing taxes and duties,” said Knight.

    “It might seem counterproductive for companies to invest in equipment when times are tough. However, when supply chains are unstable and raw material costs are high—maximizing efficiencies is often the answer and automation is key to achieving this.”

    Knight draws attention to the processing and packaging stages of production where cigarette manufacturers are driving further efficiencies.

    “The labor-saving benefits of automated packaging such as cartoning, palletizing and tax stamping systems are widely understood and this is being demonstrated by the enquiries we are receiving.

    “Another area we are seeing particular interest in is cigarette waste management through the increasing popularity of our tobacco reclaimer system.”

    The tobacco reclaimer is an automated solution that recovers usable tobacco from rejected cigarettes and is capable of processing up to 100 kg of tobacco per hour, with recovery rates of up to 95 percent.

    “Manufacturers are always going to want to minimize waste but recent turbulence may have sharpened minds somewhat,” continued Paul Knight.

    “Fundamentally, tackling the current market difficulties comes down to making the most of what you have in terms of raw materials – and that means cutting wastage down to an absolute minimum.”

    This article was contributed by Nielsen McAllister Public Relations on behalf of CME Automation Systems.

  • Ireland Mulls Single-Use Ban and Age Increase

    Ireland Mulls Single-Use Ban and Age Increase

    Photo: Timothy S. Donahue

    The Minister for Health in Ireland wants to raise the minimum age for smoking to 21, according to a local press report. He would also like to ban disposable vaping products.

    Stephen Donnelly said the government is also looking at a range of legislative measures “to come

    down hard” on vaping.

    He made the remarks at an event to mark the 20th anniversary of the workplace smoking ban in Ireland, which prohibited smoking in indoor commercial spaces.

    The process for legislating new restrictions, which involves a public consultation, is complicated by Ireland’s inclusion in the EU single market.

    Donnelly said he would personally recommend raising the smoking age and that legislation was being prepared in the event it was agreed upon at the government level.

    “It’s a measure aimed at people who are 15, 16, 17 years of age that—with a smoking age of 18—they find it relatively easy to go to either buy the cigarettes themselves or get a friend or an older sibling to get them.

    “But if you move to 21, it makes it much more difficult,” he said. The country raised the age to 18 last year.

    A public consultation will also examine issues such as banning disposable vapes and extending prohibited smoking zones to outdoor seating areas.

  • South Korea to ‘Refresh’ Graphic Warnings

    South Korea to ‘Refresh’ Graphic Warnings

    Photo: KT&G

    In December 2024, South Korea will mandate new graphic health warnings on cigarette packs, reports mk.co.kr .

    The new warning pictures and phrases, the fifth approved set under the National Health Promotion Act, will be applied Dec. 23, 2024, through Dec. 22, 2026. The fourth approved set of warnings expires on Dec. 22, 2024.

    The new warnings replace two out of 10 types of pictures on cigarette packs, increasing the proportion of the disease depicted, and the phrase changes from a word to a sentence.

    For e-cigarettes, the subject of the warning pictures will increase from one to two, but the warning phrases will remain the same.

    “The fifth warning picture and phrase comprehensively considered the analysis of domestic and foreign policy studies, public surveys and opinions of related experts,” said Jeong Yeon-hee, head of the Health Promotion Division at the Ministry of Health and Welfare. “We set it as an effective plan to prevent smoking and induce smoking cessation by utilizing the purpose of introducing the cigarette pack health warning notation system.”

  • A Risky Strategy

    A Risky Strategy

    Photo: kurgu128

    Banning e-liquid flavors may not achieve the outcomes that proponents have in mind.

    By Neil McKeganey, Gabriel Barnard and Christopher Russell

    In the world of drug development, very clever people spend a lot of time determining what chemicals need to be combined, in what quantities, over what duration and with what frequency, for a medication to have maximum therapeutic effect. By contrast, much less attention is directed at determining the color, shape, taste or aroma of the pill or capsule involved. If we think of e-cigarettes principally as drug delivery systems, with the drug in question being nicotine, we similarly may come to think that issues of taste and flavor are of secondary importance. In reality, flavors may exert a huge influence in shaping how, why, when and whether adults who smoke use e-cigarettes as an alternative to smoking.

    Faced with concerns around youth vaping, there have been increasingly strident calls to ban all e-liquid flavors other than those that tase and smell like tobacco or menthol. The belief here is that by restricting e-cigarette flavors in this way, fewer youth will vape while leaving adults who smoke able to access at least a couple of the flavors that have been available for use.

    The risks here are considerable. First, there is the possibility that, even in the face of a ban of e-liquids containing characterizing flavors, youth interest in and use of e-cigarettes remain unchanged. That possibility is by no means unlikely given that the U.S. National Youth Tobacco Survey has shown that flavors lag well behind “curiosity” and “family and friends use” in terms of youths’ reasons for vaping. Second, there is the risk that by reducing the range of available e-liquid flavors, fewer adults will use e-cigarettes as a route out of smoking.

    At the moment, e-cigarettes are very popular. They are typically cheaper than regular cigarettes, available in a huge range of flavors, can be discretely used in a wide range of settings, and they can help adults to quit smoking. As e-cigarettes sit increasingly in the crosshairs of regulatory control, we can see each of these benefits steadily being reduced as a result of initiatives to ban flavors, raise taxes, shrink the number of outlets selling e-cigarettes and increase restrictions on where people can vape. The upshot of those accumulated restrictions may be that youth vaping remains largely unchanged while fewer adults use e-cigarettes as a way out of smoking.

    In the past, when faced with an increase in rates of volatile solvent abuse (glue sniffing) among U.K. youth and ingestion of Tide Pod detergents by youth in the U.S., the call to ban these products was resisted in favor of restrictions that were placed on how these products could be displayed and sold in retail outlets. In the case of volatile solvent-based products, out went the open shelves of solvent-based glues and cleaning products and in came the locked glass cabinets and the requirement to ask sales staff directly to provide access to the desired product.

    Through restricting how these items could be displayed, we found a way to ensure a useful household product could continue to be sold while reducing youth access to harmful chemicals. The case for trying to do the same with e-cigarettes is even greater and more compelling. The price of failure here is not simply the loss of a range of helpful household products, for which there were available alternatives, but the loss of what may be the single most impactful innovation in promoting adult smoking cessation.

    The options are stark. In the face of proposals to ban characterizing flavors, it will become increasingly important for industry to support independent research showing what role flavors play in consumers’ decisions as to whether to vape, what to vape and, most importantly, whether to continue or cease smoking. Where flavor bans are initiated, it will be important to monitor what happens once the range of preferred flavors are no longer available; will adults who have already switched from smoking to vaping with the help of now-banned flavors revert back to smoking instead of using the narrowed range of available vape flavors to “stay switched?” Will fewer adults who smoke adopt and use e-cigarettes as a route out of smoking? In addition, industry would be wise to consider ways in which flavored e-cigarettes can be packaged and displayed that actually reduce youth interest in and access to these products.

    If we fail to find a way to balance the need for youth protection and the importance of adult consumer choice in promoting smoking cessation, there is a real risk that we will have undermined vaping as a popular, permanent road away from smoking. The cost of that failure will be measured not in the loss of a range of useful household products, as was the case with volatile solvents and Tide detergent pods, but in the loss of millions of lives of adults who smoke.

  • Vapers Now More Likely to Quit Cigarettes

    Vapers Now More Likely to Quit Cigarettes

    Photo: Pcess609

    Smokers who switch to e-cigarettes are now more likely to stop smoking regular cigarettes, according to a new paper published by Oxford University Press in Nicotine & Tobacco Research. In the past, smokers who began vaping mostly continued smoking.

    Electronic nicotine delivery systems first emerged on the U.S. market in 2007. The first e-cigarettes resembled conventional cigarettes (in appearance) and used fixed low-voltage batteries. Beginning in 2016, manufacturers introduced e-liquids containing nicotine salt formulations. These new e-cigarettes became widely available. These nicotine salts are lower in pH than freebase formulations, which allow manufacturers to increase nicotine concentration while avoiding harshness and bitterness.

    Past population-level research provided conflicting findings on whether vaping helps people who smoke combustible cigarettes to quit smoking. Some research suggests improved cigarette quitting-related outcomes with e-cigarette use, while other research suggests the opposite. Inconsistent findings may be due to differences in the samples and measures considered, differences in the analytic approaches of researchers used, the rapidly changing product environment, or policy contexts.

    While our study doesn’t give the answers as to why vaping is associated with cigarette quitting in the population today when it wasn’t associated with quitting years ago, design changes leading to e-cigarettes that deliver nicotine more effectively should be investigated.

    The researchers here examined differences in real-world trends in population-level cigarette discontinuation rates from 2013 to 2021, comparing U.S. adults who smoked combustible cigarettes and used e-cigarettes with U.S. adults who smoked combustible cigarettes and did not use e-cigarettes.

    Using data from among adults (ages 21+) in the Population Assessment of Tobacco and Health (PATH) Study, a national longitudinal study of tobacco use from people from all over the United States, the researchers found that between 2013 and 2016, rates of discontinuing cigarette smoking among adults in the U.S. population were statistically indistinguishable between those who used e-cigarettes and those who did not. Cigarette discontinuation rates were 15.5 percent for those who used e-cigarettes and 15.6 percent for those who did not.

    But the quit rates changed in subsequent years; the researchers here found that between 2018 and 2021 only 20 percent of smokers who did not use e-cigarettes stopped smoking combustible cigarettes, but some 30.9 percent of smokers who used e-cigarettes stopped smoking combustible cigarettes.

    The paper notes that the full study period spanned a time in the United States when the e-cigarette marketplace was expanding; salt-based nicotine formulations gained market share in 2016 and vaping products became available with increased nicotine yields over time. This was also a period in which state and federal governments restricted tobacco in various ways, including increasing the tobacco-purchase age to 21 and restricting flavored e-cigarettes.

    “Our findings here suggest that the times have changed when it comes to vaping and smoking cessation for adults in the U.S.,” said study first author, Karin Kasza, an assistant professor of oncology in the Department of Health Behavior at Roswell Park Comprehensive Cancer Center in Buffalo, New York, in a statement.

    “While our study doesn’t give the answers as to why vaping is associated with cigarette quitting in the population today when it wasn’t associated with quitting years ago, design changes leading to e-cigarettes that deliver nicotine more effectively should be investigated. This work underscores the importance of using the most recent data to inform public health decisions.”

  • Sampoerna Opens Third-Party Factory

    Sampoerna Opens Third-Party Factory

    Photo: Sampoerna

    Sampoerna opened a new third-party operator (TPO) factory for hand-rolled kretek cigarettes (SKT) in Jaten, Central Java, Indonesia, on March 27.

    Owned and operated by Attin Sigaret Indonesia, Jaten facility employs approximately 2,000 people.

    During the inauguration ceremony, Directorate General of Customs and Excise Representative Iyan Rubiyanto lauded the anticipated economic impact of the new factory.

    “We hope that the opening of this TPO will continue to absorb workforce and create a multiplier effect on the surrounding economy,” he was quoted as saying. “The sustainability of the industry is among the focus of the Directorate General of Customs and Excise, Ministry of Finance. Therefore, let’s maintain economic sustainability as a positive impact of the SKT industry.”

    Following a period of sustained decline, the SKT segment started recovering in 2020 after the government started supporting the segment in an effort to boost employment. Partially as a result of its measures, the SKT’s share of the tobacco market increased from 17 percent in 2019 to 28 percent in 2023.

    “On behalf of Sampoerna and tens of thousands of SKT hand-rollers, I would like to express my gratitude for the concern and support of the Directorate General of Customs and Excise, which represents the central government, in ensuring the sustainability of the tobacco industry, including protecting the SKT labor-intensive sector through various policies,” said Sampoerna Director Elvira Lianita in a statement.  

    TPO Jaten is one of five new TPOs that officially started operations in the first quarter of 2024. It complements Sampoerna’s other new SKT partnerships in Cilacap, Purwodadi, and Kebumen Regencies in Central Java, as well as Bojonegoro Regency in East Java.

    Sampoerna now has partnerships with 43 TPOs, all of which are owned and operated by local entrepreneurs and/or local cooperatives. The company now employs, directly and indirectly, more than 90,000 people, about 90 percent of whom are working in SKT production facilities.

  • Contraband Crackdown to Boost Russian Budget

    Contraband Crackdown to Boost Russian Budget

    Photo: Sabphoto

    Recent measures to strengthen control over the tobacco market could significantly boost Russia’s budget, reports Interfax, citing comments by Finance Minister Anton Siluanov.

    “Together, we estimated that the volume of funds mobilized from measures to control the tobacco market could reach about 150 billion rubles [$1.64 billion]. This is a significant amount of a resource that we now need,” Siluanov said at an April 2 meeting of Rosalkogoltabakkontrol, which assumed regulatory authority over the production and circulation of  tobacco and nicotine-containing products on March 1.

    Tax-avoiding products accounted for 13 percent of Russia’s tobacco market in 2023, up from 11 percent in 2021, according to Siluanov.

    Rosstat data show that tobacco companies produced 198 billion cigarettes in 2023, which is 10.7 percent less than the previous year. In response to Russia’s invasion of Ukraine, some multinationals have exited the market.

    Tax authorities expect to collect RUB824.152 billion in excise taxes from tobacco products this year.

    As part of its new responsibilities, Rosalkogoltabakcontrol must identify and stop the illegal production and trafficking of tobacco and nicotine-containing products. In addition, it will monitor manufacturer compliance with licensing and mandatory requirements for production, supply and the purchase and transportation of raw materials and finished products.

  • WAI Releases Anti-Smoking Policies Index

    WAI Releases Anti-Smoking Policies Index

    Photo: carlosseller

    We Are Innovation (WAI) released the 2024 Effective Anti-Smoking Policies Global Index. The index assesses around 5.5 billion people, nearly 70 percent of the world’s estimated 8 billion population. It offers an analysis of the public policies to eradicate smoking in 69 countries across four regions. Evaluating a range of 11 categories, the index delves into the intricacies of innovative noncombusted nicotine products, scrutinizing aspects such as regulatory frameworks, prohibitions, taxation and governmental measures for switching from traditional smoking.

    The 2024 Effective Anti-Smoking Policies Global Index includes 11 new countries. The newcomers are China, Finland, India, Norway, Qatar, Taiwan, Thailand, Turkmenistan, the United Arab Emirates, the United States and Vietnam.

    The top 20 countries in the global anti-smoking index, including the U.K., Sweden, Slovakia, Ireland, the Czech Republic, Switzerland, Lebanon, Greece, the U.S., Spain, New Zealand, Romania, Italy, France, Canada, Germany, Saudi Arabia, Poland, Croatia and Austria, collectively impact almost 1 billion people worldwide. European nations dominate the list, with 15 out of the 20 spots occupied by countries from this region. However, non-European nations like the U.S., Lebanon, New Zealand, Canada and Saudi Arabia also make significant strides in terms of regulations.

    The index emphasizes the urgent need for global advancements in anti-smoking policies as the majority of the world’s population resides in countries where such policies still need improvement, according to WAI.

    “With over 8 million lives lost annually to smoking-related diseases, the need for effective anti-smoking measures is more urgent than ever,” said WAI CEO Federico N. Fernandez in a statement.

    “Nations like Sweden and New Zealand are leading the way by embracing innovative nicotine products in the fight against combustible tobacco. Their public policies allowing alternatives have yielded remarkable results, with smoking rates around 5 percent—nearly smoke-free. This success highlights the vital role innovation must play in consigning smoking to history. Policymakers worldwide must follow the example set by these countries, fully harnessing safer products to uproot smoking’s devastating toll on global health.”

  • EU Lifts Limits on Cross-Border Cigarette Purchases

    EU Lifts Limits on Cross-Border Cigarette Purchases

    Photo: Richard Villalon

    European Union countries lifted the limit on cigarette purchases from other member states on March 29, in line with EU requirement, reports The Connexion.

    Previously, the limit was one carton (200 cigarettes or 10 packs) per person. It will now be up to member states’ customs officers to determine if the quantity of cigarettes brought in are for personal use or are contraband.

    While customs authorities said the change would make it easier to combat cigarette smuggling, tobacconists in high-tax countries said it would present them with unfair competition from lower-tax jurisdictions.

    In February, French tobacconists and newsagents protested against the planned changes, saying they would cost them business. Cigarettes in neighboring Spain, for example, sell for only half the price of those in France due to lower tax rates.

    Anti-tobacco activists have also criticized the new rules, describing them as “a win for the tobacco lobby.”

    Bertrand Dautzenberg, president of the Paris Sans Tabac association, complained that Europe was prioritizing market freedoms over health.  

    He said that lifting the limit was encouraging consumers buy their cigarettes in a country where they are cheaper. The message, said Dautzenberg, is that “You can now get lung cancer or a heart attack for €7 ($7.54) a day instead of €12.”

    Dautzenberg said that the definition of “personal use” was now too loose because there is no official limit.

    Previously, the EU directive had stated that member states could not set a limit under 800 cigarettes per person.

     Some are now calling for prices to be standardized across the EU.

  • Investor Welcomes Independent Directors

    Investor Welcomes Independent Directors

    Photo: KT&G

    Flashlight Capital Partners, a significant shareholder of KT&G Corp. welcomed the cigarette manufacturers’ appointment of an independent director, which the investor said would enhance governance and shareholder value.

    At its recent annual meeting, KT&G appointed Kyung-Man Bang as its new CEO. Shareholders also approved the appointment of Dong-hwan Shon and Sang-wook Kwak as outside directors

    “We view this appointment as a victory for all shareholders, irrespective of size or nationality,” said Sanghyun Lee, managing partner of Flashlight Capital, in a statement. “With the addition of a truly independent director committed to advancing shareholder interests, KT&G has taken a crucial step towards governance normalization.”

    In a letter addressed to KT&G’s new board of directors, Lee outlined asked the company to link the compensation of the board and CEO to performance; investigate the underperformance of KT&G’s Lil heat-not-burn product in Japan; and exit the asset management business, among other actions.

    “With the appointment of the new board of directors, especially Mr. Shon, we are optimistic that KT&G’s future will be characterized by increased transparency and improved governance standards,” said Lee.