Author: Taco Tuinstra

  • Imperial Adds Hamilton as Non-Exec. Director

    Imperial Adds Hamilton as Non-Exec. Director

    Image: Mariakray

    Julie Hamilton will join the board of Imperial Brands as a non-executive director upon conclusion of the company’s annual general meeting on Jan. 31, 2024.

    Hamilton, who was chief commercial and global sales officer at Diageo until August 2023, has over 30 years’ experience in marketing, strategy and digital transformation. Prior to Diageo, she spent 25 years at the Coca-Cola Co. where she held a range of leadership positions, including chief customer and commercial leadership officer.

    “Julie is an experienced global leader who brings deep knowledge of delivering commercial change in multinational consumer businesses,” said Imperial Brands Chair Thérèse Esperdy in a statement. “Her understanding of digital transformation and global brands will be invaluable to the board as it continues to oversee Imperial’s strategy and transformation.”

    Hamilton will also join the People and Governance Committee upon appointment.

  • AOI Brazil Invests in Seed Production

    AOI Brazil Invests in Seed Production

    Image: AOI

    Alliance One International has opened a seed industrialization unit at its Global Research, Development and Deployment Center in Passo do Sobrado, Brazil.

    Alliance One is a major supplier in Brazil’s tobacco seed market, with tobacco grown from the company’s varieties comprising approximately 40 percent of the tobacco produced in the country. According to AOI, the new seed industrialization unit positions the company for global growth as a leader in tobacco crop solutions with the ability to provide customers and farmers with best-in-class genetics.

    “Our new unit provides us with greater quality control of our seed products and makes it possible for all activities to be governed by our internal integrated quality management system,” said Helio Moura, vice president of global agronomy at Alliance One, in a statement. “Improved quality control opens doors to sell our seed in new markets at a faster speed, increases customer and farmer satisfaction, and drives efficiencies within our business.”

    According to AOI, the new equipment furthers the company’s efforts to combine cutting-edge technology with advanced agricultural practices to produce high-quality seeds for tobacco production. The machinery is designed to handle small seeds such as tobacco, a rare specification in various markets, and perform a range of essential seed processing functions including threshing, grading, upgrading, pelleting, drying and seed finishing. These capabilities help improve seed germination, stimulate healthy, consistent crop development and increase yield—key elements to improving farmer livelihoods and meeting customer volume requirements and specifications.  

    The unit has an annual processing capacity of nearly 2 metric tons and the ability to pelletize more than 200,000 cans of seed for sale each year. “The company’s global research, development and deployment center plays a fundamental role in promoting quality, productivity and sustainability in tobacco,” said Moura. “Our agronomic input packages are tested at the center before going to the field, positioning our Company to deliver extremely competitive genetics to the farmer.”

    Alliance One says its genetics promote higher quality, yield and disease resistance in tobacco crops and are proven to reduce the amount of crop inputs, such as crop protection agents, fertilizer and nutrients necessary for production. This reduction results in a lower cost of production for the farmer while driving forward a more sustainable industry.

    “Our strategy has allowed us to develop global solutions and approaches, respecting the culture and speed of each market, aiming to strengthen the future of and bring efficiency to our supply chain,” said Moura.

    AOI says it remains committed to the innovation of sustainable agriculture practices and driving advancements in the agriculture sector that will support farmers and customers across the globe.

  • Canada Rolls Out New Health Warnings

    Canada Rolls Out New Health Warnings

    Canada has started rolling out 14 new graphic health warnings on cigarette packs, reports Yahoo Finance.  Manufacturers must ensure the new labels are on packages by Jan. 31, and retailers are required to stock the packs by April 30, according to Health Canada.

    The new labels feature smoking-related illnesses such as tongue, stomach and neck cancer, as well as gangrene. Canada pioneered the concept of graphic health warnings in 2001 and has frequently updated its image library to prevent the pictures from losing their shock value.

    The latest set of photo warnings also build on various other harms of smoking, including heart attack, brain damage and death from stroke as well as impotence due to reduced blood flow to the penis.

    Another set of 14 photo warnings is expected to appear on cigarette packages in two years.

    Last year, the government also required cigarette manufacturers to print health warnings on individual cigarette sticks. Cigarettes now include messages, such as “poison in every puff,” in English and French.

    Canada aims to  slash smoking rates from about 10 percent to less than 5 percent by 2035.

  • A Greener Leaf

    A Greener Leaf

    Yi people with high-quality flue-cured tobacco from electric barns
    (Photos: Jingmei Zhang)

    Chuxiong tobacco flue-curing enters the “zero carbon” era.

    By Min Lu, Xiaojiao Du, Jingmei Zhang

    Tobacco flue-curing is a critical tobacco production procedure and a relatively concentrated carbon emission process. By reducing carbon emissions during flue-curing, green production of flue-cured tobacco would be achieved. China is striving to achieve carbon neutrality by 2060 based on its responsibility to promote a shared future for mankind and its inherent requirements for achieving sustainable development. Under the “carbon peak and neutrality strategy,” the green and low-carbon transformation of the tobacco industry is imminent. China Tobacco proposes to accelerate the green and low-carbon transformation of the industry’s development mode, focusing on the green development goals outlined in the next five-year plan. This initiative aims to expedite promoting green tobacco agriculture and facilitate the overall low-carbon transformation and upgrading of the entire industrial supply chain.

    The Chuxiong region has a long history of cultivating flue-cured tobacco. As early as 1613, tobacco was successfully grown in Wuding and Lufeng counties, which was then known as CaoYan. This area was among the earliest tobacco-planting regions in Yunnan. Today, Chuxiong has emerged as the second-largest tobacco-producing area in the province, supporting the economic and social development and contributing significantly to the increase in the Yi nationality people’s income.

    Situated in the central northern part of Yunnan Province, Chuxiong Yi Nationality Autonomous Prefecture is located on an inland plateau, with over 90 percent of its total area covered by mountains and semi-mountainous terrain. The region experiences a subtropical low-latitude plateau monsoon climate, providing an ideal geographical environment and climate conditions for cultivation of flue-cured tobacco. With its picturesque landscapes and favorable ecological advantages, Chuxiong Prefecture stands out as one of the most scenic tobacco-producing areas in Yunnan.

    A picturesque tobacco area in Nanhua County, Chuxiong Prefecture, Yunnan Province, China

    In recent years, Chuxiong Tobacco Co. has actively developed new energy electric flue-curing barns. In order to reduce the energy cost of electric flue-curing barns, solar power technology has been used to find clean energy for tobacco leaf flue-curing while also possessing the function of cold and freezing storage. Chuxiong Prefecture has taken a pioneering step toward “zero carbon” flue-curing in the province, aiming to reduce environmental impact significantly.

    A group of electric flue-curing barns developed in Chuxiong Prefecture, Yunnan Province

    At present, coal has been the primary energy source for tobacco leaf flue-curing in Chuxiong Prefecture, leading to high energy consumption and inefficiency. Coal combustion has high carbon emissions, contributing to environmental pollution. Additionally, coal-fired flue-curing barns often lack precise temperature and humidity control, leading to issues such as rapid heating, temperature fluctuations and damage to tobacco leaves during flue-curing. These challenges have hindered the long-term development of green tobacco production, making the transition to clean and renewable energy sources imperative.

    Chuxiong boasts abundant sunshine, with an average annual sunshine duration of 2,447 hours and an average daily sunshine duration of 6.7 hours, making it one of the best areas for solar energy technology. The local government, particularly in Gonghe Town, Mouding County, has proactively sought funding to explore the construction of photovoltaic power stations atop 300 electric flue-curing barns in the region. This initiative converts solar energy into electricity, contributing to the reduction of carbon emissions and promoting sustainable energy practices. For example, a photovoltaic power station has been built on the roof of the 60 electric flue-curing barns of the Tiantai Village in Gonghe Town, with an installed capacity of 1,076 kW, 1,957 photovoltaic panels and an average annual power generation of 1,506,400 kWh. Based on full grid connection, the average annual income would be CNY505,849 ($70,933).

    Construction of a solar power station on the roof of an electric energy flue-curing barn

    Gonghe Town has also innovatively transformed electric barns into multifunctional units suitable for local conditions. Refrigeration equipment has been installed in 36 electric barns, enabling them to serve as cold and freezing storage units after the tobacco leaf flue-curing season. This comprehensive use of resources not only increases the efficiency of the barns but also supports the planning and development of nontobacco industries in the region—for example, to provide for keeping fresh conditions for planting green peas and green broad beans.

    To enhance flue-curing management practices, Chuxiong Tobacco has developed an Internet of Things (IoT) hardware device for flue-curing barns. Leveraging IoT technology, flue-curing technicians can monitor flue-curing conditions in real time through their mobile phones. They can adjust parameters, such as dry bulb and wet bulb temperature, providing precise guidance and real-time monitoring. By the end of 2022, the IoT hardware equipment had been successfully implemented across 4,894 barns, connecting them to the smart flue-curing management system.

    After the completion of the electric energy flue-curing barn, Chuxiong Tobacco Co. strengthened the training of the tobacco leaf flue-curing team, focusing on the electric energy flue-curing barn’s technology. Flue-curing technicians initially faced challenges in understanding the debugging and use techniques of the electric flue-curing barn. To address this, Chuxiong Tobacco organized multiple training sessions to enhance the team’s proficiency in operating the electric flue-curing barn and improving flue-curing technology.

    Starting from early August 2023, a comprehensive benefit analysis was conducted on three types of flue-curing barns: electric, biomass and coal. Through their own experiments, tobacco farmers gained firsthand insights into the advantages of electric flue-curing barns. A total of 38 flue-curing tests were conducted. From an economic perspective, the analysis revealed three key points.

    First, the flue-curing cost, including electricity and labor, for the electric energy flue-curing barn was CNY1.60 per kilogram, significantly lower than the biomass flue-curing barn (CNY2.60 per kilogram) and the coal-fired flue-curing barn (CNY3.30 per kilogram). The electric energy flue-curing barn reduced costs by 66.5 percent and 109.5 percent compared to biomass and coal-fired options, respectively.

    Second, the flue-curing loss rate was also analyzed. Electric energy flue-curing barns demonstrated a loss rate of 4.88 percent, outperforming biomass flue-curing barns (5.16 percent) and coal-fired flue-curing barns (5.8 percent). The electric energy flue-curing barn reduced quality flue-cured leaf losses by 5.7 percent and 19 percent compared to biomass and coal-fired alternatives.

    Third, the flue-curing output value was considered. Electric energy barns were priced at an average of CNY31.16 per kilogram, surpassing biomass barns (CNY30.5 per kilogram) and coal-fired barns (CNY29.10 per kilogram). Electric energy barns saw a price increase of 2.23 percent compared to biomass and 6.75 percent compared to coal-fired barns.

    Overall, electric flue-curing barns significantly lowered flue-curing costs, reduced flue-cured leaf losses and improved tobacco quality compared to biomass and coal-fired alternatives. Furthermore, the comprehensive output value of electric flue-curing barns increased by CNY2,890.30 per furnace and CNY4,535.20 per furnace, respectively (calculated based on a single furnace of 650 kg of dry tobacco), in comparison to biomass and coal-fired options. There has been a significant improvement in the economic benefits of 3,030 electric flue-curing barns in the state compared to coal-fired flue-curing barns.

    In terms of ecological and environmental benefits, the operation of the electric energy flue-curing barn has achieved the goal of “zero carbon” emissions, marking a significant step toward green and sustainable development. Alliance One International, Philip Morris International and PwC Price Waterhouse Coopers visited Chuxiong Prefecture to inspect and study the construction of electric energy barns. They highly praised and fully recognized this innovative approach. Chuxiong Tobacco Co. has successfully navigated the challenges of clean energy flue-curing, leading the industry toward “intelligent flue-curing.” This innovation has established a new service model for “intelligent flue-curing” and also promoted green and sustainable development in tobacco-growing areas. More importantly, it has increased the income of tobacco farmers, consolidated achievements in poverty alleviation and contributed significantly to rural revitalization efforts.

  • Montenegro Tobacco Excise Up in February

    Montenegro Tobacco Excise Up in February

    Image: Yeti Studio

    The government of Montenegro will increase the excise duty on cigarettes and smokeless tobacco products as of Feb. 1, 2024, to align its taxes with EU standards, reports SeeNews.

    The specific component will be raised to €50.50 ($55.25) per 1,000 cigarettes from €49, while the proportional component will remain unchanged.

    Excise duty on smokeless tobacco products will increase to €190 euro from €145.

    A similar increase is anticipated to take effect in July.  

  • Activists Lament EU Stance on THR

    Activists Lament EU Stance on THR

    Photo: Andrzej

    The European Commission’s approach to tobacco harm reduction is out of touch with EU citizens’ views, according to the World Vapers’ Alliance (WVA)

    A recent public consultation on the EU Tobacco Products Directive (TPD), analyzed by Snusforumet, reveals a substantial consensus among citizens, NGOs and scientific institutions on the effectiveness of harm-reduction products in assisting smokers to quit.

    A striking 77 percent of respondents recognize these products as helpful smoking cessation tools, while a mere 9 percent of EU citizens disagree. Furthermore, an overwhelming 82 percent of respondents refute the notion that new nicotine alternatives pose a risk to public health, with only 6 percent perceiving them as a threat.

    “The EU Commission’s current stance on harm reduction is not just out of touch; it’s a blatant disregard for consumer opinions and scientific evidence,” said WVA Director Michael Landl in a statement. “It’s high time the Commission responds to the reality that harm-reduction products are not the enemy but a vital ally in the fight against smoking.”

    According  to the WVA, countries like Sweden serve as living proof of the success of a consumer-friendly harm reduction approach, significantly outpacing the EU in reducing smoking rates. The EU Commission’s reluctance to embrace this approach is not only perplexing but also detrimental to public health efforts, the organization says.

    “Sweden’s success story is a testament to what can be achieved with a sensible harm reduction policy,” said Landl. “It’s baffling and frankly irresponsible for the EU Commission to continue its hostile approach towards these life-saving products. The Commission needs to align its policies with the clear evidence and public opinion, rather than clinging to outdated and ineffective methods.”

  • WHO Report ‘Unscientific”: Mata

    WHO Report ‘Unscientific”: Mata

    Lorenzo Mata Jr. (Photo: Quit for Good)

    A public health advocacy group based in the Philippines has criticized the latest report of the World Health Organization on the use of electronic cigarettes, saying the global body undermines the significant progress made in public health over the past two decades as smokers transitioned to smoke-free products.

    Lorenzo Mata Jr., president of Quit for Good, said the WHO’s continued demonization of e-cigarettes disregards the wealth of scientific evidence demonstrating that smoke-free alternatives such as e-cigarettes, heated tobacco and snus have helped millions of smokers in countries like the United Kingdom, the United States, Japan and Sweden successfully quit smoking.

    “The best available clinical and population studies consistently show that vaping has led to adult smoking cessation. While it is necessary to monitor youth vaping, a complete ban on e-cigarettes will only exacerbate the smoking epidemic and its associated serious health conditions,” Mata Jr.  said in a statement.

    As a Filipino physician, Mata said the WHO’s failure to differentiate between the risks of e-cigarettes and combustible tobacco is unscientific.

    Last month, the WHO issued a statement calling for urgent action to safeguard children and prevent the adoption of e-cigarettes based on what Quit for Good insists is a misrepresented account of the scientific evidence to fit its predetermined conclusion to ban e-cigarettes or regulate them as strictly as far more dangerous cigarettes.

    Additionally, the WHO provided data indicating that the global market for electronic cigarettes grew from $7.81 billion in 2015 to $22.35 million in 2022. Between 2018 and 2022, the disposable e-cigarette market expanded by 116 percent, encompassing over 550,000 different products.

    Mata said the WHO’s diagnosis of the situation is flawed, as it fails to acknowledge the significant decline in harmful substance exposure resulting from smokers switching to e-cigarettes and other smoke-free alternatives, or the fact that smoke-free products work for many smokers better than traditional smoking cessation therapies.

    “E-cigarettes do not threaten public health but provide smokers with an exit from smoking, which is the real problem. Labeling these innovative products an emerging threat to public health is worrisome because the WHO essentially tells smokers that continuing smoking is better than switching to e-cigarettes. This is patently wrong,” he said.

    Quit for Good highlights that countries that banned e-cigarettes did not eradicate vaping but instead inadvertently created an unregulated underground market that poses risks to public health due to the absence of regulatory standards.

    Mata said these bans only benefit unscrupulous criminal gangs that are happy to sell these products to anyone, including children, without any controls as to what’s in them or how they’re made.

    According to independent public health experts, e-cigarettes and other smoke-free products offer an opportunity to combat smoking-related diseases such as cancer, heart disease and lung disease by transitioning to nicotine products with significantly reduced risk and no combustion.

    Commenting on a similar WHO report published earlier, Peter Hajek, Director of the Tobacco Dependence Research Unit at Queen Mary University of London, said: “Given the tremendous benefits this transition would bring to public health, it is paradoxical that the WHO has adopted such a strident anti-vaping stance that risks impeding this progress. This new report perpetuates this tradition, calling for a ban on less risky alternatives while freely allowing the sale of tobacco. The report misrepresents evidence and should come with a prominent health warning.”

    John Britton, an emeritus professor of Epidemiology at the University of Nottingham, said the WHO still fails to differentiate between addiction to tobacco smoking, which leads to millions of deaths annually, and addiction to nicotine, which does not.

    “The WHO appears content with the inconsistency of recommending medicinal nicotine products for treating smoking addiction while advocating the prohibition of consumer nicotine products that serve the same purpose, but more effectively. The WHO is correct in discouraging non-smokers, particularly children, from using any nicotine product. However, for over a billion tobacco smokers worldwide, electronic nicotine delivery systems are part of the solution, not the problem,” Britton said.

    Mata said many countries, including the Philippines, have in fact chosen to embrace scientific evidence and regulate the use of innovative smoke-free products such as e-cigarettes to provide smokers with better options to quit.

  • Tobacco Ban Will Cost Dutch Supermarkets

    Tobacco Ban Will Cost Dutch Supermarkets

    Image: igorkol_ter

    Supermarkets will lose more than €1.5 billion ($1.64 billion) in earnings due to the ban on selling tobacco products that takes effect in the Netherlands on July 1, reports the NL Times, citing ING.

     Some 35 percent of tobacco sales will shift to tobacconists and smaller convenience stores, according to researchers at the bank.

    Gasoline stations and shops just over the border in Belgium and Germany are also set to benefit from the Dutch supermarket tobacco ban.

    Tobacco accounts for around 7 percent of a typical Dutch supermarket’s revenue—the equivalent of roughly €3.2 billion in total annually.

    “The revenue drop will be more visible during the second half of 2024,” said ING economist Thijs Geijer. Most supermarkets, except for Lidl and most Albert Heijn shops, will continue selling tobacco for the first six months of the year.

    “Because it is introduced on July 1, the ban will continue to reduce the turnover growth for supermarkets in 2025 significantly,” Geijer predicted.

  • Researchers to Study Impact of Dual Use

    Researchers to Study Impact of Dual Use

    Photo: tcsaba

    A new project sponsored by the Center of Excellence for the Acceleration of Harm Reduction (CoEHAR) will investigate the consequences of the combined use of conventional cigarettes and electronic cigarettes on human health.

    Titled, “MAGnitude of cigarette substitutioN after Initiation oF e-cigarettes and its Impact on biomArkers of exposure and potenTial harm in dual users” (“Magnificat”), the study will involve more than 300 dual users.

    Using specific biomarkers, clinical endpoints and behavioral correlations, researchers will be monitoring participants’ health to quantify the impact of transitioning to combustion-free products.

    Participants will be asked to reduce the consumption of conventional cigarettes and switch to electronic cigarettes for a controlled period. According to CoEHAR, the results of the study will be of great interest in addressing questions related to smoking harm reduction in both clinical and behavioral contexts.

    Tobacco Reporter profiled the work of CoEHAR in its January 2024 issue (see “Reviewing their Peers.”)

  • Pakistan Growers Reject Purchasing Price

    Pakistan Growers Reject Purchasing Price

    Photo: Taco Tuinstra

    Tobacco growers in Pakistan have rejected the PKR505 ($1.80) per kg tobacco purchasing price set by the Ministry of Commerce for the upcoming marketing season, reports Dawn.

    During a Jan. 13 meeting in the Dagi, Swabi District, grower representatives blasted the Pakistan Tobacco Board for being partial to tobacco buyers in price negotiations. They also accused the purchasing companies of negotiating in bad faith.

    The growers’ leaders demanded that the per-kg tobacco rate should be fixed in proportion to the prevailing record inflation and the high expenditures incurred on production of the crop.

    Grower representative Arif Ali recalled that the companies bought tobacco from growers at PKR425 per kg at initial stage in the 2023 season, but the market price later jumped to PKR1,200 per kg. He said the firms had also failed to fulfil a promise to pay arrears at the end of the season as per the final rate.

    The growers are now planning sit-ins outside the gates of the tobacco purchase centers in the production areas. They also threatened to switch to other crops if their demands were not met.