Author: Taco Tuinstra

  • Quebec Urged to Crack Down on Flavored Vapes

    Quebec Urged to Crack Down on Flavored Vapes

    Eric Gagnon, Vice-President of Corporate and Regulatory Affairs at Imperial Tobacco Canada, urges the government to buckle down on enforcing its law during the press conference. (Photo: Imperial Tobacco Canada)

    Imperial Tobacco Canada is urging the government of Quebec to crack down on illegal flavored vaping products.

    Three months after the law banning flavors in vaping products came into force, flavored e-cigarettes remain available at a large number of retail outlets that either infringe on the law or are using a variety of tactics to circumvent the law, according to Imperial Tobacco Canada, which is part of British American Tobacco.

    “We are aware of the growing concern with the proliferation of products that circumvent the regulations, resulting in the creation of an illicit market,” said Imperial Vice-President of Corporate and Regulatory Affairs Eric Gagnon in a statement.

    “We recently identified over 200 sales outlets that sell non-compliant vaping products. These stores have not adjusted to the new regulations and continue to offer a wide range of flavored products, including those that exceed the maximum permitted quantity of 2 ml.”

    According to Imperial, these stores now also sell flavor enhancers as a way to circumvent the new regulation. “Given that these enhancers are not intended to be vaped, they can pose serious risks to consumers who use them,” the company wrote in a press note. “It is also because of a similar illegal market that a wave of lung diseases spread between 2019 and 2020 in the U.S., claiming 68 lives.”

    Imperial says that instead of meeting its objective of tackling vaping among young people, the government has created a thriving illicit market.

    During a Jan. 21 appearance on the talk show Tout le monde en parle Health Minister Christian Dubé blamed tobacco companies for the situation.

    Imperial Tobacco Canada said it strongly refutes the allegations. “As a responsible company that fully complies with the regulations in place, we denounce these abuses and reiterate our call for stronger enforcement of the law,” said. Gagnon. “We warned the minister’s office several months ago about the inevitable collateral damage that would result from such a regulation being implemented. Unfortunately, nothing was done, and the situation persists as a result.”

  • EU: Tobacco Meetings are Transparent

    EU: Tobacco Meetings are Transparent

    Photo: artjazz

    The European Commission insists it has sound transparency measures in place, despite EU Ombudsman Emily O’Reilly’s findings of maladministration in an inquiry of the Commission’s interactions with representatives of the tobacco industry.

    “The Commission has been uncompromising in delivering the highest standards of transparency—on who we meet and who seeks to influence us,” a Commission spokesperson told Euractiv.

    In December, O’Reilly concluded that the Commission had failed to “ensure a comprehensive approach across all its departments to transparency of meetings with representatives of the tobacco industry,” including “failure to ensure a systematic assessment, across all directorates-general, as to whether potential meetings are needed with representatives of the tobacco industry.”

    Article 5.3 of the World Health Organization’s Framework Convention on Tobacco Control instructs parties, such as the EU, to protect public health polices from the tobacco industry’s commercial and other vested interests.

    Despite the finding, the Commission spokesperson insisted that there is a “very solid baseline consisting of horizontal rules on ethics and integrity for Commission staff.”

    Tobacco Europe, an industry organization, confirmed that it is difficult for tobacco lobbyists to arrange meetings with the Commission in any directorate-general. Its director of EU affairs, Nathalie Darge, said that FCTCs Article 5(3) is often “misinterpreted” and used as an excuse not to meet industry representatives.

  • Profits Up at Indian Cigarette Makers

    Profits Up at Indian Cigarette Makers

    Image: RODWORKS

    ITC’s reported a profit of INR55.72 billion ($670.3 million) for the three months that ended Dec. 31, up nearly 11 percent over the comparable 2023 period, the company announced on its website.

    The consumer goods giant benefited from higher demand for its cigarettes as a crackdown on the smuggling of international cigarette brands reduced competition. A sharp escalation in costs of leaf tobacco and certain other inputs, along with increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing.

    The company’s cigarette business, which contributes more than 40 percent of ITC’s top line, grew 3.6 percent over the period. Its paperboards, paper and packaging business, by contrast, struggled with competition from China and sluggish economic conditions in some of its export markets. The segment’s revenue declined almost 10 percent.

    ITC’s hotel business, which the conglomerate plans to spin off into a separate entity, reported  an 18 percent jump in revenue, driven by a strong revival in domestic tourism and heightened demand from corporate bookings.

    ITC competitor Godfrey Phillips India (GPI) also reported improved performance for the third quarter, according to Reuters. The company posted a consolidated net profit of INR2.12 billion, up 6.6 percent over the comparable 2023 quarter. Total revenue from operations rose 34 percent to 14.88 billion rupees, with the company’s core cigarettes segment registering a growth of 37 percent.

    GPI attributed its performance to growth in its core segment and easing expenses. The company manufactures and distributes Marlboro-branded cigarettes under a license agreement with PMI.

    The growth in the cigarette segment was led by the Marlboro Compact, which is priced at INR10 apiece.

  • Zimbabwe Exports Up

    Zimbabwe Exports Up

    Photo: Taco Tuinstra

    Zimbabwe earned nearly 3.5 times as much from tobacco exports in January than it did in the same month of 2023, reports The Herald.

    The country exported leaf worth $274.7 million last month, compared with $80.9 million a year ago. The golden leaf raked in just over $1.2 billion from the more than 233 million kilograms exported in 2023.

    According to the Tobacco Industry and Marketing Board, exporters shipped 37.8 million kg to date this year, with the bulk of leaf going to China, which has so far imported 30.2 million kg valued at $248.8 million. The average price was $8.24 per kg.

    African countries imported the second largest amount of Zimbabwean tobacco at 3.2 million kg worth $9.3 million at an average price of $2.89 per kg.

    European Union countries imported 1.3 million kg of tobacco from Zimbabwe valued at $2.6 million at an average price of $2.09 a kg.

    For next season, Zimbabwe’s tobacco growers have thus far planted 113,101 hectares, compared to 117,645 ha in the same period last year.

    The decrease in tobacco planting is largely attributed to the delayed start of the rainy season.

  • China Tobacco Manager Pleads Guilty to Corruption

    China Tobacco Manager Pleads Guilty to Corruption

    Image: waldemarus

    A former deputy manager of China Tobacco Yunnan Industrial Co. pleaded guilty on Jan. 25 to taking more than CNY354 million ($50 million) in bribes, reports China Daily.

    Prosecutors accused Gu Bo of taking advantage of his positions from 1999 to 2018 to assist others in their business activities in return for illegal payments.

    Gu was placed under disciplinary review and supervisory investigation in January 2023. He is the fourth China Tobacco Yunnan Industrial official to be investigated for corruption since last year.

    In 2023, authorities probed the activities of Zhang Shuichang, Zhu Shaoming and Wu Yi.

  • Kiwi Ministers Asked to Disclose Tobacco Links

    Kiwi Ministers Asked to Disclose Tobacco Links

    Photo: slexp880

    Health activists have asked New Zealand’s government ministers do disclose any links to the tobacco industry, noting that the politicians’ rhetoric is strikingly similar to the industry’s key talking points, reports the New Zealand Herald.

    The call comes follows the dramatic reversal of New Zealand’s generational tobacco ban legislation by the country’s recently installed coalition government. Last week, said Associate Health Minister Casey Costello drew fire for suggesting a temporary halt to tobacco tax increases in consideration of smokers’ socioeconomic backgrounds—an argument that has also been raised by tobacco allies on occasion.

    In a briefing published Jan. 31 by the Public Health Communications Center, three University of Otago public health academics highlight links between government members of parliament and the industry and similarities between their public statements.

    The paper points out that the government is a signatory to the World Health Organization’s Framework Convention on Tobacco Control, which requires member states to engage with tobacco companies only for regulatory purposes, while recording and disclosing any interactions.

    Janet Hoek, the co-director of smoke-free research group Aspire2025, stressed she and her colleagues were not accusing ministers of a conflict of interest. “Our call is simply for full transparency,” she was quoted as saying.

    According to Hoek, there is little popular support for the government’s repeal of the smoke-free legislation, which would have reduced the number of retailers selling tobacco, reduced nicotine levels in cigarettes and banned sales to anyone born after 2009.

    The paper lists the government’s past and current links to the industry, including two former NZ First staffers, David Broome and Apirana Dawson, who had gone on to work at tobacco giant Philip Morris International.

    Under questioning in Parliament on Jan 30, Prime Minister Christopher Luxon said he was not aware of any ministers receiving donations from anyone associated with the tobacco industry. He added he expected all ministers would comply with their obligations to report potential conflicts.

  • Russian Scientists Create Reduced-Nicotine Tobacco

    Russian Scientists Create Reduced-Nicotine Tobacco

    Image: Elyena Grigorova

    Scientists from Russia’s Institute of Cytology and Genetics have created a reduced-nicotine content tobacco.

    “Tobacco synthesis genes are associated with key life processes of the plant,” said Sofya Gerasimova, senior researcher at the Institute of Cytology and Genetics at the Siberian Branch of the Russian Academy of Sciences. “We modified tobacco into a plant with an inherited reduced-nicotine content.”

    The two “most promising methods” for reducing the nicotine content were patented, according to nsk.kp. The scientists believe modified tobacco could serve as a food source for insects and that it will have a positive effect on the human body. 

  • FDA Appeals Premium Cigar Ruling

    FDA Appeals Premium Cigar Ruling

    Photo: poco_bw

    The U.S. Food and Drug Administration on Jan. 31 appealed an August 2023 court ruling vacating the agency’s decision to regulate premium cigars, reports Halfwheel.

    The court ruling stemmed from a lawsuit filed by the Cigar Association of America, the Cigar Rights of America and the Premium Cigar Association (PCA).

    In 2022, Judge Amit Mehta issued an opinion examining the rulemaking record and detailing the FDA’s failure to address evidence in the record showing that premium cigars have different usage patterns, with different resulting health effects, than other cigars. Mehta later ruled that the FDA’s mishandling of significant questions that the FDA itself asked in its proposed rule merited vacating it, as the FDA never made a nonarbitrary decision to regulate premium cigars.

    In its appeal, the FDA urges the court to elevate deference to the agency’s “scientific judgment” over its duty of explanation under the Administrative Procedure Act. The FDA also argues that Mehta should have sent the flawed rule back to the agency to fix it while allowing the FDA to continue regulating premium cigar retailers and manufacturers under the arbitrary rule in the meantime.

    In a statement, the PCA said it would be responding to the FDA’s arguments and defending Mehta’s opinion in a forthcoming filing with the D.C. Circuit Court. A hearing before three judges of the appellate court is likely to follow.

  • Murray Garnick to Retire From Altria

    Murray Garnick to Retire From Altria

    Photo: Altria Group

    Murray R. Garnick, executive vice president and general counsel of Altria Group, will retire on April 1. Garnick’s career spanned nearly 40 years in support of Altria and its family of companies. He joined Altria Client Services in 2008 as senior vice president and associate general counsel after more than two decades representing Altria and its subsidiaries in litigation matters as a partner at the law firm of Arnold and Porter.

    “Under Murray’s guidance, we have successfully managed significant litigation challenges and established Altria as a leading advocate for tobacco harm reduction policies in the U.S.,” said Altria CEO Billy Gifford in a statement. “In addition to Murray’s significant individual contributions, his passion for developing world-class legal and regulatory talent has contributed tremendously to Altria’s success. I am grateful for his many contributions, and I wish him the best in retirement.”

    Robert (Bob) A. McCarter will become Altria’s executive vice president and general counsel effective April 1, 2024. Currently, McCarter serves as senior vice president and associate general counsel for Altria Client Services, where he supervises the management of tobacco, health and other litigation. McCarter joined Altria in 2015 following 18 years in private practice representing Altria and its subsidiaries in litigation matters.

  • Pax Labs Sues ALD Over Patents

    Pax Labs Sues ALD Over Patents

    Photo: utah51

    Pax Labs has filed a lawsuit against the vape brand Stiiizy and its manufacturer ALD Group for allegedly infringing four vape pen patents, reports Bloomberg Law.

    Stiiizy and Hong Kong-based ALD make vaporizing devices, including a cartridge and battery, that utilize methods similar to Pax Labs’ patents, according to separate complaints filed in the U.S. District Court for the Central District of California.

    Pax Labs said the companies infringed U.S. Patents 11,369,756, 11,369,757, 11,766,527 and 11,759,580, which deal with methods for leak-resistant vaporizer cartridges and apparatuses.