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  • Marriott’s Tobacco Health Fee Lawsuit Narrowed

    Marriott’s Tobacco Health Fee Lawsuit Narrowed

    A Maryland federal judge allowed a proposed class action challenging Marriott International’s tobacco-user health surcharge to proceed, while dismissing several claims the court found insufficiently supported. The case was brought by Marriott employee William McNeil, who alleges the company violated the Employee Retirement Income Security Act (ERISA) by charging employees who use tobacco an additional $15 per week for health coverage without providing an adequate alternative way to avoid the surcharge. The lawsuit was filed in September 2025 in the U.S. District Court for the District of Maryland.

    McNeil alleges Marriott’s employee communications referenced a smoking-cessation program but did not provide sufficient information about how employees could enroll or whether participation would allow them to avoid the fee. Marriott moved to dismiss the amended complaint in January, arguing the claims failed as a matter of law; McNeil opposed the motion in February, and Marriott filed its reply in March.

    The lawsuit is proceeding under ERISA and remains before U.S. District Judge Theodore Chuang in Maryland.

  • Reuters: Nicotine Pouches Emerge as Big Tobacco’s Key Growth Bet

    Reuters: Nicotine Pouches Emerge as Big Tobacco’s Key Growth Bet

    Reuters reports that nicotine pouches are attracting increasing investor attention as cigarette sales decline, with rapid volume growth, strong margins and relatively light regulation in many markets making brands such as PMI’s Zyn and BAT’s Velo a major focus for tobacco companies. BAT expects the global pouch market to grow from £4 billion in 2025 to £11 billion by 2030, while pouch volumes in its Asia, Middle East and Africa markets increased 27.5% to about 700 million in the first half of 2026.

    Reuters said the category also offers higher profitability than several competing alternatives. PMI reported that its U.S. oral nicotine business generated eight times the gross profit per 1,000 units of its international cigarette business in 2024, compared with 2.4 times for IQOS heated tobacco. Analysts said pouch performance is increasingly influencing tobacco-company valuations, while the products’ lack of smoke or vapor allows them to be used in locations where other nicotine products may be restricted.

    The story noted that wider adoption remains uncertain, particularly in markets without an established oral nicotine culture. Analysts cited consumer familiarity with inhaled products as a key barrier, while regulators are increasingly scrutinizing youth uptake, marketing and high nicotine strengths. France has banned pouches, while Finland, the EU and Britain are tightening rules. Despite expectations for continued growth, PMI and BAT say no single alternative will replace cigarettes, with diverse portfolios needed to accommodate different consumer preferences.

  • JT Marks Peace Brand’s 80th Anniversary

    JT Marks Peace Brand’s 80th Anniversary

    Japan Tobacco announced that it will release limited-edition packaging for its Peace cigarette brand to mark the brand’s 80th anniversary. The limited-edition The Peace package will launch in early September at select tobacco retailers nationwide and through the CLUB JT online shop, while limited-edition packages for Peace Light Box, Peace Super Light Box, and Peace (20) will launch nationwide in early October.

    The packaging will feature Peace’s pigeon logo while retaining the brand’s traditional design. JT launched Peace in 1946 and is marking the anniversary with initiatives including the Masters Peace campaign and pop-up events.

    The Peace is priced at ¥1,000 ($6.30) with 10 mg tar and 1 mg nicotine. Peace Light Box and Peace Super Light Box are ¥600 ($3.78), with 10 mg/0.9 mg and 6 mg/0.6 mg, respectively, while Peace (20) is ¥600 with 21 mg tar and 1.9 mg nicotine.

  • Dominican Republic Creates Council to Protect Cigar GI

    Dominican Republic Creates Council to Protect Cigar GI

    The Dominican Republic established a Regulatory Council for the “Dominican Cigar” geographical indication (GI) to protect the authenticity, quality and international reputation of its cigar industry. Chaired by Dominican Tobacco Institute Director Iván Hernández Guzmán, the council includes government agencies and industry groups and will oversee compliance with production standards from tobacco cultivation through manufacturing, packaging and storage. It will also promote the designation, support marketing, and train registered producers, with the National Quality Council (Indocal) and National Office of Industrial Property (Onapi) providing technical and legal support.

  • JTI Calls for ASEAN Action on Illicit Tobacco Trade

    JTI Calls for ASEAN Action on Illicit Tobacco Trade

    Japan Tobacco International’s Philippine unit is calling on ASEAN governments to harmonize export controls and destination-market requirements after illicit tobacco trade was estimated to have cost the region $13.1 billion in revenue over the past two years. JTI Philippines Fiscal and Regulatory Affairs Director Mario Zinampan said illicit trade has become a regional issue requiring coordinated action rather than country-by-country measures.

    JTI is proposing an ASEAN declaration on harmonizing rules for high-risk and sensitive goods, covering export integrity, customs cooperation, interoperable track-and-trace systems and intelligence sharing. The company also wants ASEAN countries to strengthen proof-of-export and verification requirements and apply destination-country regulations consistently to reduce smuggling, misdeclaration, undervaluation, counterfeiting and diversion.

    Zinampan said inconsistent export requirements across ASEAN create regulatory gaps that illicit traders can exploit. He called for a common “destination principle” requiring products exported within the region to comply with the laws of their destination market, arguing that stronger coordination would help close loopholes and improve cross-border enforcement.

  • ALP Launches Limited-Edition Frontier Collection

    ALP Launches Limited-Edition Frontier Collection

    ALP Pouches launched its limited-edition Frontier Collection of tobacco-free nicotine pouches through its direct-to-consumer platform. The lineup includes three new flavors — Cowboy Coffee, Campfire Cinnamon, and Sunset Mango — and adds 4 mg and 8 mg nicotine strengths to its existing 3–12 mg range.

    The launch campaign, built around the theme “Tame Your Frontier,” includes a film produced with creator Dave “Heavy D” Sparks featuring a live horse roundup, Black Hawk helicopter, and cowboy Chance Gilliland. ALP also plans marketing partnerships across outdoor, rodeo, combat sports, and athletic communities, including a collaboration with Teton Ridge and the Arizona Ridge Riders.

  • A Needed Course Correction on Tax Stamping—And a Blueprint for Other States

    A Needed Course Correction on Tax Stamping—And a Blueprint for Other States

    By Dan Mulvaney, PMI U.S.

    For decades, tax stamping has been a cornerstone of most state excise tax systems for cigarettes. The stamping works, in part, because of the per unit tax and packs of cigarettes are uniform in size and distribution. By requiring wholesalers to purchase and affix tax stamps before products reach retail, states have created an efficient, centralized model for tax collection—one that depends on the wholesale channel to function effectively.

    What is often overlooked is the role wholesalers actually play. They are not passive participants—they are, in effect, the state’s tax collection agents. They purchase stamps, invest in specialized equipment, manage inventory controls, and maintain strict compliance and reporting protocols. This is not theoretical; it is an operational reality requiring significant time, labor, and capital.

    That is why stamping allowances have historically existed: to offset the cost of collecting and remitting excise taxes on behalf of the state.

    Yet in recent years, policymakers have moved in the wrong direction. Across the country, stamping allowances have come under pressure—often viewed as a revenue opportunity rather than compensation for a mandated service. In some cases, policymakers have even considered eliminating them altogether, disregarding the real costs imposed on wholesalers.

    Fortunately, the Louisiana Legislature understands the importance of stamping allowances and  what a modern, risk-aligned tax framework should look like. The state has reduced the excise tax rate by 65% for certain products that meet the high bar of being an FDA-authorized Modified Risk Tobacco Product (MRTP). Currently, two unique products – Philip Morris International’s (PMI’s) heated tobacco product, IQOS, and 22nd Century Group’s low nicotine cigarette, VLN – have received this designation, recognizing their distinct profile from traditional cigarettes.

    Just as important, Louisiana paired this approach with practical supply chain incentives. Wholesalers will receive a 10% discount on MRTP tax stamps, while the existing cigarette stamp discount increases from 5% to 6.5%. This preserves operational stability while creating a clear differential that favors modified-risk alternatives.

    Together, these changes reinforce the right market signals—supporting state revenue, maintaining system integrity, and accelerating the transition from traditional cigarettes to modified-risk alternatives.

    By increasing the cigarette stamping allowance, policymakers have taken an important step toward restoring balance—acknowledging that the system only works when the entities responsible for executing it are properly supported.

    This outcome did not happen in a vacuum. It reflects sustained engagement by manufacturers, such as PMI, to ensure that wholesalers and retailers have a voice in the policymaking process. At a time when many stakeholders remain focused solely on tax rates or product restrictions, PMI has consistently focused on the operational realities facing the trade.

    More importantly, PMI has demonstrated leadership as a true partner to the wholesale and retail community. This new law is a clear example of that commitment translating into tangible economic value.

    This is more than a policy update. It is a recognition of the essential role wholesalers play in maintaining efficient, compliant tax systems—and proof that collaboration between policymakers and industry can deliver better outcomes.

    In an environment where allowances have too often been reduced or overlooked, this represents a meaningful course correction. It strengthens the supply chain, supports compliance, and reinforces a simple truth: when policymakers and industry partners work together—and when manufacturers are willing to lead—the entire system benefits.

    Dan Mulvaney is director of industry engagement for Philip Morris International Inc. (PMI) U.S. The businesses of PMI U.S. are on a mission to improve public health in America by providing the roughly 30 million legal-age consumers who still smoke traditional cigarettes with better, smokefree alternatives. PMI U.S. is committed to responsible marketing practices that help prevent access to its products by people under the age of 21. 

  • Why Naturally Extracted Tobacco Never Scaled

    Why Naturally Extracted Tobacco Never Scaled

    By Jon Rankin, Black Note

    Most tobacco-flavored e-liquid on the market has never been near a tobacco plant. That is not a criticism. It is simply how the category got built.

    Tobacco flavor, like nearly every other flavor in vapor products, is assembled. A flavor house supplies a concentrate engineered to read as tobacco on the palate, the manufacturer doses it to specification, and the result is fast, inexpensive, and identical from batch to batch. For a category that had to scale quickly under commercial and regulatory pressure, that was the only sensible way to build.

    There is another method. Cured leaf can be macerated directly, extracting its flavor into the base rather than recreating that flavor from aroma compounds. The product is called naturally extracted tobacco. Black Note has manufactured this way since 2015.

    The question worth asking is not which approach tastes better. That argument is unwinnable and largely beside the point. The question is why, a decade into a category worth billions, extraction has remained a niche production method rather than a mainstream one.

    The answer is industrial, not sentimental

    Start with time. Maceration is measured in weeks. Mixing to a flavor specification is measured in hours. Every week of maceration is working capital sitting in a tank, and it costs a manufacturer the ability to respond to demand. If orders spike, a formulator mixes more that afternoon. An extractor cannot.

    Then there is variability, which is the harder problem. Tobacco is an agricultural input. Crop years differ. Growing regions differ. Two lots of the same varietal, cured the same way, do not extract identically. A flavor formulation carries no such exposure, and that predictability is precisely why the industry standardized on it. Extraction imports an entire agricultural supply chain into a product consumers expect to taste the same every time. Correcting for it means blending across lots, adjusting process, and a willingness to reject material that does not meet the mark, none of which appears on a formulator’s cost sheet.

    Then the regulatory arithmetic. Under the PMTA framework, every distinct product a US manufacturer sells carries its own application and its own scientific burden. That pushes every manufacturer, extraction or not, toward fewer product lines rather than more. It lands harder on a producer whose cycle is already slow and whose inputs already vary, because the cost of carrying a line is fixed while the difficulty of producing it consistently is not.

    None of this is a complaint. It is an explanation. The economics of formulation are better, and for most of this category’s history the market did not distinguish sharply enough between formulated and extracted tobacco flavor to justify the difference in cost.

    What changed is the regulatory perimeter

    Flavor restrictions have moved through market after market, and tobacco is typically among the characterizing flavors that remain permitted where others do not. The specifics vary by jurisdiction and the picture is still moving. But the direction has been consistent: the flavor segment with the most durable regulatory outlook is the one that tastes like tobacco.

    That makes the production question more relevant than it was five years ago, not less. If tobacco flavor is where the category’s permitted volume concentrates, then how tobacco flavor is actually made stops being a craft curiosity and becomes a supply question. A market selling mostly tobacco flavor will eventually be asked what that flavor is made of, by regulators, by retailers, and by consumers who came across from combustible cigarettes and therefore hold an unusually well-calibrated reference point.

    Extraction will not displace formulation

    The cost structure does not support it and probably never will. A category at scale cannot run on a process that takes weeks and varies by harvest.

    But a category built almost entirely on one production method, now concentrating into the single flavor where the alternative method has something real to offer, deserves more attention than it currently receives. The interesting question for the next few years is not whether extraction wins. It is whether anyone can make it faster, cheaper, or more consistent than it is today, and whether the market will pay for the difference if they do.


    Jon Rankin is Content & Partnerships at Black Note, a US manufacturer of naturally extracted tobacco e-liquid. He writes and reviews Black Note‘s guides so the choices around vaping and nicotine are clear instead of confusing. A UCLA English graduate and former professional miler, he turns complicated topics into guidance readers can actually use.

  • Pouch Strength Labels Lack a Common Unit, Index Finds

    Pouch Strength Labels Lack a Common Unit, Index Finds

    European nicotine pouch retailer PouchSpot recently published a cross-brand strength index arguing that voluntary nicotine caps are often undercut by inconsistent labelling. Cans variously print milligrams per pouch, milligrams per gram, or words such as “extra strong,” so a 0.7 g pouch labelled 20 mg/g holds 14 mg per pouch, not 20.

    In PouchSpot’s catalogue, products named “extra strong” range from 6 mg to 20 mg per pouch. The index standardizes 30 brands to milligrams per single pouch, drawn from 357 products, with values from 1.5 mg to 50 mg and asterisks on listings whose units are ambiguous. PouchSpot says brand ranges barely overlap: Zyn spans 1.5 mg to 13.5 mg, while Killa starts at 13.2 mg. The company argues a mandatory per-pouch figure on the front of the can would make any cap, voluntary or statutory, more readable at the shelf.

  • Zimbabwe Eyes Tobacco SEZs to Boost Value Addition

    Zimbabwe Eyes Tobacco SEZs to Boost Value Addition

    Zimbabwe’s tobacco sector is reaching record production levels but declining returns are highlighting the need for greater local processing and value addition, according to local authorities. Tobacco sales reached 358.3 million kg this season, up 1% from 353.3 million kg in 2025, while farmer revenue fell 24% to $892.6 million as average prices dropped 25% to $2.49 per kg. Industry officials and economists warn that global cigarette consumption is declining and the shift toward slim and super-slim products is reducing leaf demand, limiting the value of further production increases.

    Industry experts are urging Zimbabwe to establish tobacco-specific special economic zones (SEZs) modeled on manufacturing hubs in the United Arab Emirates. Tapiwa Masedza, founder of Chevron Tobacco, said targeted fiscal incentives, streamlined regulations and improved logistics could encourage investment in cut-rag processing and cigarette manufacturing. Zimbabwe aims to increase tobacco industry revenue to as much as $7 billion by 2030, raise production to 500 million kg and increase local value addition from about 2% to 30%.

    Proposed SEZ incentives include a five-year zero corporate tax rate, duty-free imports of complementary foreign leaf for processing and re-export, deferred or zero-rated VAT on inter-merchant and export transactions, accelerated capital allowances, and excise-free exports. Zimbabwe has installed capacity to produce about 18 billion cigarettes annually but manufactures only around 4 billion, according to industry sources. Masedza said removing VAT on local grade exchanges and providing greater regulatory certainty would help merchants blend and process tobacco domestically, allowing Zimbabwe to capture more value from each kilogram of leaf rather than relying on raw exports.