Author: Taco Tuinstra

  • Altria Reports 2023 Results

    Altria Reports 2023 Results

    Photo: Maurice Norbert

    Altria Group reported net revenues of $5.98 billion for the fourth quarter of 2023 and net revenues of $24.48 billion for the full fiscal year, down 2.2 percent and 2.4 percent, respectively, from the comparable 2022 periods.

    The decrease in the fourth quarter and the full year were both driven primarily by lower net revenues in the smokable segment, which were partially offset by higher net revenues in the oral products segment.

    “It was a pivotal year for Altria as we made significant progress in pursuit of our Vision by enhancing our smoke-free product portfolio while our businesses performed well in a challenging environment,” said Altria CEO Billy Gifford in a statement. “We grew adjusted diluted EPS by 2.3 percent and continued our long history of rewarding shareholders by delivering nearly $7.8 billion in dividends and share repurchases.”

    “Our plans for 2024 include a continuation of our strategy to balance earnings growth and shareholder returns with strategic investments toward our Vision. We expect to deliver 2024 full-year adjusted diluted EPS in a range of $5.00 to $5.15, representing a growth rate of 1 percent to 4 percent from a $4.95 base in 2023.”

  • Korean Sales Fall for First Time in Years

    Korean Sales Fall for First Time in Years

    Photo: Taco Tuinstra

    South Korean cigarette sales fell in 2023 for the first time in four years, reports Yonhap News Agency, citing data from the finance ministry. Electronic cigarette demand, however, grew.

    Last year, South Koreans purchased 3.61 billion cigarette packs, down 0.6 percent from 2022, the first on-year decrease since 2019’s 0.7 percent fall. 

    Sales of duty-free cigarettes increased 60.7 percent in 2023 in line with an increase in post-pandemic tourists.

    Traditional cigarette sales fell 2.8 percent, but heat-not-burn electronic cigarettes increased 12.6 percent.

    Last year, electronic cigarettes accounted for 16.9 percent of total sales, an increase from 12.4 percent in 2021.

  • E-cigarette Smugglers Found in Finland

    E-cigarette Smugglers Found in Finland

    Photo: Kekyalyaynen

    Finnish Customs uncovered a substantial e-cigarette smuggling operation in Helsinki, according to The Helsinki Times. The operation involved illicit imports from China.

    Customs officers discovered a shipment of about 1,000 nicotine e-cigarettes during routine inspections at a courier terminal in Helsinki. The suspect had ordered about 1,600 e-cigarettes from China in 2023.

    Finland prohibits importation of vapes through “distant communication methods” like online orders. Penalties can range from fines to imprisonment plus paying back evaded taxes and illicit gains.

    Some people are unaware of the rules, however. “Not all those persons always know that it is illegal to order and distribute e-cigarettes,” said Marko Laitinen, investigation leader, referring to young people ordering e-cigarettes. “Once you get caught doing that, it always entails criminal liability.”

  • Farmers Told to Destroy Seedbeds or Risk Arrest

    Farmers Told to Destroy Seedbeds or Risk Arrest

    Image: Global Image Archive

    Tobacco farmers in Zimbabwe must destroy seedbeds or risk fines or imprisonment of up to two years, reports The Sunday Mail.

    The revised tobacco planting deadline passed on Jan. 15, following a pushback from Dec. 31.

    Zimbabwe’s Plant Pests and Disease Act requires farmers to destroy all living tobacco plants on seedbeds by Dec. 31.

    “The last date of destroying all tobacco plants in seedbeds was Jan. 15, 2024, and in this case, it passed, and farmers need to abide by that,” said Leonard Munamati, acting chief director of Agricultural Advisory and Rural Development Services.

    “Pathogens, such as potato virus Y and bushy top virus, are a result of poor management and failure to comply with the regulation dates,” said Cleopas Chinheya, head of Kutsaga’s plant health services. “Clearing seedbeds breaks the life cycle of pests and pathogens and viral transmission from seedbeds or fields.”

    “Complying to the regulated dates does not benefit the enforcers but the farmers,” said George Seremwe, president of the Tobacco Association of Zimbabwe. “If we let pests and disease carry over on our land, it is us who suffer.”

    “We always urge our fellow farmers to be responsible in their operations,” said Seremwe.

  • Council Urges Steep Tobacco Tax Increase

    Council Urges Steep Tobacco Tax Increase

    Photo: Krakenimages.com

    Hong Kong’s anti-smoking watchdog has called for a 75 percent increase in tobacco tax to meet international standards, reports the South China Morning Post.

    If the tax rate is increased by 75 percent, the smoking rate could decrease by 0.7 percentage points to 8.8 percent, according to the Hong Kong Council on Smoking and Health. The council added that other control measures would be necessary to bring the city’s smoking rate down to the 7.8 percent goal by next year.

    The call for a tax increase comes before next month’s budget. Last year, the tax was increased 31.5 percent.

    “Raising tobacco tax should be prioritized for achieving the smoking reduction target,” council chairman Henry Tong Sau-chai said at a press conference.

    “[The increase last year] was insufficient to compensate for the price gap caused by the freezing of the tax rate in the previous eight years.”

    The World Health Organization has stated that the tax should account for at least three-quarters of the retail price of cigarettes, meaning Hong Kong would need an increase of 75 percent.

    “[Hong Kong is] in a really good position to reduce prevalence to the point in getting close to what we call the ‘endgame,’” said Hana Ross, an honorary research associate from the University of Cape Town’s school of economics. 

    Forty-one countries, including France, the United Kingdom and Australia, have reached the WHO’s recommended level of tobacco tax.

  • KT&G Finalizes CEO Candidates Shortlist

    KT&G Finalizes CEO Candidates Shortlist

    Photo: uaPieceofCake

    The governance committee of KT&G Corp. finalized the first shortlist of KT&G CEO candidates on Jan. 31 and recommended the finalized list to the CEO candidate recommendation committee. The first shortlist includes four external candidates and four internal candidates.

    The governance committee held eight meetings since the end of December to oversee the open recruitment for CEO candidates and conduct comprehensive assessments. Subsequently, the committee selected the first shortlist by taking into account impartial and objective opinions from the advisory panel composed of external experts.

    The CEO candidate recommendation committee will now assess the candidates from the first shortlist in order to ensure sufficient candidate validation and select the most suitable candidate for the CEO position. The committee will finalize the second shortlist of three to four individuals by mid-February and disclose the list upon its finalization.

    Then, the CEO candidate recommendation committee will conduct face-to-face interviews with the candidates on the second shortlist to thoroughly review each candidate. Following the assessment, the committee will name the final CEO candidate and report to the board of directors by the end of February. The board of directors will then table the agenda for the annual general meeting of shareholders after resolution, and the CEO will be appointed following the approval at the annual general meeting of shareholders in late March.

    The CEO candidate recommendation committee is composed entirely of outside directors, without the participation of the incumbent CEO, Bok-in Baek.

  • Sunak Asked to Reconsider Ban

    Sunak Asked to Reconsider Ban

    Photo: Lumos sp

    The U.K. Vaping Industry Association sent a letter to U.K. Prime Minister Rishi Sunak to “express profound dismay and disappointment” that the government decided to proceed with a disposable vape ban.

    “This decision jeopardizes the significant progress made in reducing smoking rates in the U.K. and poses a threat to the well-being of millions of adults who have successfully quit smoking with the help of vaping,” the letter reads.

    “We urge the government to reconsider the ban on disposable vapes and adopt a more balanced approach that prioritizes effective enforcement over draconian bans,” the letter says. “A distributor and retailer licensing scheme, as proposed to government repeatedly by the UKVIA, would achieve such an outcome without any cost to the taxpayer.”

  • Growers Worried About South African Tobacco Bill

    Growers Worried About South African Tobacco Bill

    Photo: poco_bw

    Small-scale tobacco growers in South Africa raised concerns about the impact of proposed legislation during public hearings in the Eastern Cape province.

    To strengthen public health protection measures, lawmakers are considering a bill that would ban smoking in all indoor public places and certain outdoor areas; prohibit cigarettes sales in vending machines; require standardized tobacco packaging and ban the display of tobacco product at points of sale. The bill would also regulate electronic nicotine delivery systems and non-nicotine delivery systems.

    During the Eastern Cape gathering, tobacco growers described the relative wealth that tobacco cultivation had afforded them in an area suffering from unemployment and poverty.

    “When we were producing vegetables, me and my family were staying in a one-roomed mud house but immediately when we started producing tobacco leaf, I was able to build myself a beautiful six-roomed house, Nomfusi Kotsele, a member of the Katala cooperative in Butterworth, was quoted as saying in a report by South Africa’s Parliament. “I was also able to take my children to school so that they can have a better future than I had.”

    Participants in the meeting also cautioned against the unintended consequences of overregulation. They pointed to South Africa’s thriving illicit cigarette trade, which exploded in the wake of a Covid-19 prohibition on tobacco sales and has remained above pre-pandemic levels long after the ban ended.

    The hearings are part of a nationwide public participation process to garner citizens’ views on the bill. Similar consultations have already taken place in North West, Mpumalanga, Limpopo, Free State and Gauteng.

  • COP Urged to Implement Harm Reduction

    COP Urged to Implement Harm Reduction

    From left to right: Lorenzo Mata, Nancy Loucas and Jay Jazul

    Consumer advocacy group Quit for Good asked the World Health Organization Framework Convention on Tobacco Control (FCTC) to consider the lives of more than a billion smokers when it convenes the 10th Conference of the Parties in Panama next week. 

    Lorenzo Mata Jr., president of Quit for Good, said the WHO should implement FCTC Article 1 (d) on harm reduction strategies to help smokers.  The treaty defines tobacco control as “a range of supply, demand and harm reduction strategies.” 

    “Offering safer nicotine products to millions of adult smokers who want to reduce their exposure to toxic substances from smoke is common sense. This is what tobacco harm reduction (THR) is all about, which the WHO FCTC refuses to implement despite being part of the global treaty,” Mata said.

    Representatives from countries that are signatories to the FCTC will meet in Panama for the 10th Conference of the Parties this year, after the meeting was canceled in November 2023, to tackle major topics such as how to treat “novel and emerging tobacco and nicotine products.”

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) said blocking the use of products that can help save smokers’ lives is against the mission of the FCTC—a global treaty endorsed by most countries. 

    “People who smoke should have the right to access less harmful alternatives to smoking, and the WHO FCTC should focus on helping them. We need a pragmatic campaign to reduce the harm caused by smoking, rather than a dogmatic, deceptive, ineffective campaign to compel abstinence,” CAPHRA executive coordinator Nancy Loucas said.

    Loucas said the annual reviews of the Office for Health Improvement and Disparities, formerly Public Health England, have consistently shown that vaping carries a fraction of the risks of smoking. “Despite the overwhelming scientific evidence supporting vaping products as less harmful alternatives to smoking, the WHO has consistently disregarded the positive role that vaping can play in tobacco control,” she said.

    “It is time for the WHO FCTC and its member states to listen to the voice of the people that they are supposed to fight for and not against—the over 1 billion smokers whose lives are in danger if they continue to smoke,” she said.

    Loucas’ views were echoed by Jay Jazul, lead convener of the Harm Reduction Alliance of the Philippines (HARAP). “E-cigarettes do not threaten public health but provide smokers with an exit from smoking, which is the real problem,” he said. “The WHO’s failure to substantiate its claims against e-cigarettes and labeling these innovative products an emerging threat to public health is worrisome.”

    “The nicotine was not the problem, it was the delivery system that was the problem. We’ve known that for 50 years,” said David Sweanor of the University of Ottawa at a recent conference in Korea.

    “The best example of how products that don’t burn tobacco can benefit public health comes from Sweden, which has the lowest smoking prevalence among men in the European Union and consequently the lowest tobacco-related mortality,” said Lars M. Ramström, the principal investigator at the Institute for Tobacco Studies, which recently published a paper on the topic. Ramström served as a WHO expert and as secretary general of the 4th World Conference on Smoking and Health.

    “The meeting of the world’s health leaders in Panama, the COP10, represents a unique opportunity to take a fresh look at the most recent evidence with an open mind. After all, if Sweden had followed WHO’s advice from 20 years ago and banned snus, tobacco-related deaths in Sweden would have been much higher and the only unintended beneficiary profiting from such advice would be the cigarette industry,” said Ramström.

    In the runup to COP10, industry representatives have raised concerns about the exclusion of stakeholders from the discussions.

     

  • Senior Appointments at RAI

    Senior Appointments at RAI

    Christy Canary-Garner (left) and Valerie Mras. (Photos: RAI)

    Reynolds American Inc. (RAI), has appointed two senior leaders within its operating companies, effective Feb. 1, 2024.

    Christy Canary-Garner, currently vice president, marketing, will be promoted to senior vice president, marketing. in this role, Canary-Garner will lead R.J. Reynolds Tobacco Co.’s combustible portfolio. Canary-Garner began her career with the organization in 1992 as a territory manager with Brown & Williamson. Throughout her career, she has held leadership roles in brand marketing, consumer experience, human resources, and regulatory engagement. Canary-Garner’s industry knowledge and extensive experience spans the combustibles brand portfolio and transformative new categories with Vuse and Velo.

    Valerie Mras, currently vice president, vapor marketing commercialization, will be promoted to senior vice president, vapor. Mras joined the organization in 2008 as a territory manager in trade marketing and during her 16-year tenure has held a number of leadership roles, building teams and driving business delivery. In 2012, she joined the consumer marketing division, working across several brand marketing roles, including Camel, VUSE, Grizzly, Newport and Pall Mall.

    In 2020, she was promoted and began an international assignment at BAT’s headquarters in London as the head of new categories platform development, where she was instrumental in developing and executing the global product and pipeline strategy. In 2023, Mras returned to Winston-Salem, North Carolina, USA, to lead R.J. Reynolds Vapor Co.’s commercial business.