TobaccoReporter logo

Blog

  • UAE Sets Minimum Excise Price for E-Liquids

    UAE Sets Minimum Excise Price for E-Liquids

    The United Arab Emirates will introduce a minimum excise price of AED1 ($0.27) per milliliter for liquids used in electronic smoking devices beginning Sept. 1, as part of efforts to strengthen enforcement of the country’s excise tax system. The Ministry of Finance said the measure is designed to improve tax compliance and ensure consistent standards across tobacco and electronic smoking products.

    The new rule does not change the UAE’s existing 100% excise tax rate on tobacco products but establishes a minimum price threshold for calculating excise tax on e-liquids. Minimum excise prices for cigarettes, waterpipe tobacco and other tobacco products will remain unchanged.

  • Philippines Customs Battling Seized-Cigarette Theft

    Philippines Customs Battling Seized-Cigarette Theft

    The Philippines’ Bureau of Customs adopted a one-strike policy for personnel caught stealing or improperly handling confiscated cigarettes, following reports of attempts to divert seized tobacco products. Commissioner Ariel Nepomuceno said employees found violating the policy will be immediately removed from service and face administrative, civil, and criminal proceedings.

    Under the directive, seized cigarettes cannot be transferred, relocated, or disposed of without the commissioner’s written approval. Nepomuceno also ordered the BOC’s Internal Administration Group to recommend stronger safeguards for confiscated tobacco products at ports, emphasizing that the goods are critical evidence in the agency’s efforts to combat illicit trade and protect government revenue.

  • Ohio Weighs Authority to Enforce Illegal Vape Sales

    Ohio Weighs Authority to Enforce Illegal Vape Sales

    The Ohio Supreme Court heard arguments over whether the state can use its consumer protection laws to take action against retailers selling unauthorized flavored e-cigarettes, a case that could define the extent of state authority alongside federal tobacco regulation. The lawsuits, originally filed in 2024 against several Ohio tobacco retailers, allege the stores sold flavored vaping products that lacked U.S. FDA marketing authorization.

    Retailers argued that enforcement of federal tobacco marketing laws rests exclusively with the FDA, while Ohio officials contended the state has the authority to protect consumers from illegal product sales. The case comes as Ohio also awaits a separate Supreme Court ruling on whether cities can enforce their own flavored tobacco restrictions after the state enacted a law preempting local regulations.

  • Universal Reports Weak Q1 as Oversupply Harms   

    Universal Reports Weak Q1 as Oversupply Harms   

    Universal Corporation reported weaker fiscal first-quarter 2027 results, with revenue falling 12% year over year to $523.8 million as lower tobacco sales volumes and prices offset stable customer demand. The company posted an operating income of $2.3 million, down 93%, and a net loss of $5 million, or $0.20 per share, compared with net income of $8.5 million a year earlier. Chairman and CEO Preston Wigner said results reflected slower tobacco purchasing activity as customers assessed oversupply in flue-cured and burley markets, while the ingredients business continued to face weak consumer demand and high operating costs.

    Tobacco segment revenue declined 13% to $437.1 million, with operating income dropping 90% to $3.5 million due to lower carryover crop sales, an unfavorable product mix in Asia, and weaker pricing. Ingredients revenue slipped 3% to $86.7 million and posted a $700,000 operating loss as inflation, supply constraints, tariff volatility, and high fixed costs at its expanded Lancaster facility continued to pressure performance. Despite the weak quarter, Universal said customer commitments remain in line with its fiscal 2027 sales plan, tobacco shipments are expected to accelerate in the second half of the year, and the company ended the quarter with approximately $1.1 billion in available liquidity and lower debt levels than a year ago.

  • KT&G Raises Forecast After Record First-Half

    KT&G Raises Forecast After Record First-Half

    KT&G raised its full-year guidance after reporting record first-half revenue and a fourth consecutive quarter of double-digit profit growth. Second-quarter revenue increased 9.9% year over year to 1.7 trillion won ($1.2 billion), while operating profit rose 18.5% to 414.5 billion won ($290 million). First-half revenue reached a record 3.4 trillion won ($2.4 billion), prompting the company to increase its 2026 outlook to 5%-7% revenue growth and 10%-13% operating profit growth.

    Growth was driven by the tobacco business, where overseas revenue climbed 18.9% and operating profit surged 45.6% on higher sales volumes and price increases. KT&G also reported a 23.8% increase in next-generation products revenue, led by heated tobacco products, while maintaining a 67.9% share of South Korea’s cigarette market and a 48.2% share of the domestic heated tobacco segment. The company also increased its interim dividend to 2,000 won ($1.40) per share, reaffirmed plans for additional share buybacks and cancellations, and said it will introduce a new heated tobacco product in the second half of the year.

  • BAT Announces Marketing Board Changes

    BAT Announces Marketing Board Changes

    British American Tobacco announced a series of senior leadership changes, with Chief Marketing Officer Luciano Comin set to retire on Feb. 28, 2027, after a 34-year career with the company. Comin, who has served on the Management Board for eight years, including the past three as CMO, will be succeeded by Pascale Meulemeester, currently regional director for Asia Pacific, Middle East, and Africa (APMEA). Meulemeester will become Chief Marketing Officer Designate on Jan. 1, 2027, and assume the role on March 1, 2027.

    The company also appointed Celina Li as regional director designate for APMEA, effective Sept. 1. Li, currently Chief Commercial Officer and general manager, International & Ingredients at Ocean Spray Cranberries, will take over as APMEA Regional Director and join BAT’s management board on Jan. 1, 2027. CEO Tadeu Marroco said the appointments support BAT’s ongoing transformation strategy, highlighting Meulemeester’s brand-building expertise and Li’s international leadership and consumer business experience.

  • AIR Global to Report 1H 26 Results on Aug. 20

    AIR Global to Report 1H 26 Results on Aug. 20

    AIR Global PLC announced it will report its financial results for the six months ended June 30, on Aug. 20, with the earnings release scheduled for approximately 7 a.m. ET. The company will host a live webcast at 8 a.m. ET to discuss the results.

    The webcast will be led by CEO Stuart Brazier and CFO Bassem Lotfy and will include a review of the company’s financial performance followed by a question-and-answer session. Presentation materials and the earnings release will be available through AIR Global’s investor relations website before the webcast, with a replay posted afterward.

  • Pakistan Growers Demand Greater Transparency

    Pakistan Growers Demand Greater Transparency

    Tobacco growers in Pakistan are pressing the Pakistan Tobacco Board (PTB) to strengthen enforcement of procurement rules, alleging that weak oversight allows buyers, particularly smaller tobacco companies and dealers, to exploit farmers through unfair grading and purchasing practices.

    The Swabi Action Committee said PTB officials pledged to enforce approved grading standards, government-set prices, and procurement regulations to make the buying process more transparent and farmer-friendly. The group also called for prompt investigations into procurement complaints and warned it would stage peaceful protests if the board fails to follow through. Separately, growers claimed multinational tobacco companies have reduced purchasing quotas while domestic companies have not finalized contracts in line with PTB regulations.

  • Industry Leader Jimmy Hill Dies at 89

    Industry Leader Jimmy Hill Dies at 89

    James “Jimmy” Hill Jr., a longtime North Carolina tobacco grower and respected industry leader, died July 31 at the age of 89. Hill began his career as an agronomist with British American Tobacco and later Philip Morris International, working in Argentina, Colombia, and Venezuela before returning to North Carolina to lead Tull Hill Farms for nearly five decades. Throughout his career, he held leadership roles with the U.S. Tobacco Cooperative, the Flue-Cured Tobacco Stabilization Corporation, and the North Carolina Growers Association, and was appointed by President Bill Clinton to the Presidential Tobacco Commission, where he contributed to the 2004 Tobacco Buyout.

    Hill was widely recognized for his contributions to U.S. agriculture and tobacco, receiving North Carolina State University’s Outstanding Alumnus Award in 2006 and being named Lenoir County Citizen of the Year in 2009. In a tribute, Tobacco Associates Executive Director Kimberly Foley praised Hill’s unwavering support for U.S. tobacco farmers and his commitment to strengthening the industry’s global competitiveness, describing him as a mentor whose leadership and knowledge influenced generations. Funeral services are scheduled for Aug. 8 in Lenoir County, North Carolina.

  • Pyxus Maintains FY2027 Outlook Despite Lower Q1 Sales

    Pyxus Maintains FY2027 Outlook Despite Lower Q1 Sales

    Pyxus International reported mixed results for the first quarter of fiscal 2027 as lower global leaf tobacco prices and shipment timing weighed on revenue, while improved sourcing and cost management supported margins and cash generation. Sales fell 14% year over year to $437.8 million, driven by lower average prices in South America and Africa and reduced shipment volumes, while operating income declined to $15.7 million from $21.0 million. Despite the weaker top line, the company cut its net loss to $7.3 million from $15.8 million a year earlier, aided by a tax benefit, while adjusted EBITDA slipped modestly to $27.7 million from $29.5 million.

    CEO Pieter Sikkel said the company benefited from an ample-supply, lower-price market by selectively purchasing higher-quality tobacco at lower costs, improving cash generation and strengthening its balance sheet ahead of higher shipment volumes expected later in the year. Pyxus ended the quarter with net debt down $130.9 million year over year to $1.11 billion, no borrowings outstanding under its $150 million asset-backed lending facility, and lower tobacco inventories reflecting reduced green tobacco prices and a slower purchasing pace.

    Looking ahead, Pyxus reaffirmed its fiscal 2027 guidance, maintaining expectations for net sales of $2.3 billion to $2.5 billion and adjusted EBITDA of $210 million to $240 million, signaling confidence that stronger shipment volumes later in the fiscal year will offset the softer first-quarter performance.