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  • Philippine Tobacco Growers Warn of Oversupply Risk

    Philippine Tobacco Growers Warn of Oversupply Risk

    Philippine tobacco growers are expressing concern over a potential supply glut after strong leaf prices last year encouraged farmers to expand planting, raising fears of a market downturn. Philippine Tobacco Growers’ Association President Saturnino Distor said non-government organizations and local officials have been urging farmers to increase tobacco cultivation, but cautioned that favorable pricing conditions are unlikely to be repeated amid rising global production. He noted that major producer Malawi has significantly increased output in response to last year’s high prices, potentially flooding international markets and putting downward pressure on leaf prices.

    The National Tobacco Administration (NTA) warned that oversupply conditions could persist for two to three years and is preparing information campaigns to discourage excessive production and help protect farmers from a possible price collapse. NTA Deputy Administrator for Operations Nestor Casela said buyers have signaled reluctance to purchase additional leaf while surplus inventories remain in the market. The regulator indicated that oversupply concerns are concentrated in Virginia tobacco, while demand for Burley and native tobacco remains relatively stable. For 2026, the NTA forecasts national tobacco production of about 51 million kg, including approximately 20 million kg of Virginia tobacco, and has set buying prices of up to P98 ($1.57) per kg for higher-grade leaf and P62 ($0.99) per kg for lower-grade and rejected tobacco.

  • South Korea Signals Cigarette Tax Hikes, Tougher Warnings

    South Korea Signals Cigarette Tax Hikes, Tougher Warnings

    South Korea is advancing a broader tobacco-control agenda that could include future cigarette tax increases alongside stricter packaging regulations. Discussion of raising cigarette prices has resurfaced after Health and Welfare Minister Jung Eun-kyeong said the government needs to review tobacco pricing policy as part of efforts to address smoking and emerging nicotine products, including e-cigarettes, flavored cigarettes, and synthetic nicotine products.

    Cigarette prices have remained unchanged at an average of 4,500 won ($2.93) per pack since a 2015 increase, despite consumer prices rising about 20% over the same period. The government’s Sixth National Health Promotion Comprehensive Plan for 2026-2030 includes a review of increasing the health promotion levy to bring cigarette prices closer to OECD averages, which exceeded 9,800 won ($6.37) per pack in 2023. While no specific tax proposal has been announced, some observers believe prices could eventually move toward the 10,000-won ($6.50) range. Separately, the Ministry of Health and Welfare has finalized a new set of cigarette pack health warnings that will take effect on Dec. 23, following a six-month transition period. The revised warnings will add kidney cancer to the list of smoking-related diseases highlighted on packs, update warning images for several health conditions, and replace existing messages with more direct language, including changing “road to lung cancer” to “the end of smoking is lung cancer.” The ministry also said it will continue evaluating additional measures aligned with international tobacco-control standards, including larger warning labels, broader product coverage and potential plain-packaging requirements.

  • Reason Alleges Calif. Health Manipulated Anti-Tobacco Agenda

    Reason Alleges Calif. Health Manipulated Anti-Tobacco Agenda

    A report published by Reason alleges that the California Department of Public Health worked closely with anti-tobacco advocacy groups and consultants to advance policies aimed at ending commercial tobacco sales in the state, raising questions about the boundary between public health education and political advocacy. The article centers on a 2025 study published in Tobacco Control that concluded local tobacco sales bans could be a viable tobacco-control strategy, despite being based on a limited sample of retailers in the affluent California communities of Beverly Hills and Manhattan Beach.

    Drawing on emails obtained through public records requests, Reason alleges that CDPH-funded contractors and agency employees collaborated on messaging campaigns supporting tobacco prohibition policies, shared confidential polling data with advocacy partners, helped design voter opinion surveys, and celebrated the adoption of local tobacco sales bans. The report highlights the state’s funding of “Endgame” initiatives intended to eliminate commercial tobacco sales and scrutinizes relationships between CDPH staff, consultants, academic researchers, and organizations such as the American Cancer Society Cancer Action Network. The article argues that these activities amount to taxpayer-funded advocacy for tobacco prohibition rather than neutral public health education, while also questioning the effectiveness of tobacco sales bans and citing concerns about illicit trade and lost tax revenue associated with restrictive tobacco policies. The allegations reflect Reason‘s broader criticism of California’s tobacco-control strategy and its pursuit of a long-term “tobacco endgame” agenda.

  • Health System Settles Tobacco-Fee Suit

    Health System Settles Tobacco-Fee Suit

    Nonprofit health system Advocate Aurora Health agreed to settle a proposed class action lawsuit alleging it unlawfully imposed a tobacco-use surcharge on employees enrolled in its health insurance plan. The lawsuit, filed in federal court in Illinois, claimed the health system violated federal benefits laws by charging workers an additional fee if they used tobacco without fully complying with requirements tied to wellness program incentives.

    The plaintiffs argued that employees were not provided adequate alternatives to avoid the surcharge, as required under federal regulations governing employer-sponsored health plans. Terms of the settlement were not immediately disclosed in the court filing, but the agreement would resolve claims brought on behalf of affected employees and avoid further litigation.

  • Report:Tax-Free Cigarettes Fuel Illicit Trade Across Indonesia

    Report:Tax-Free Cigarettes Fuel Illicit Trade Across Indonesia

    Indonesia’s tax-free cigarette regime in the Batam, Bintan, and Karimun (BBK) free trade zone is fueling large-scale cigarette smuggling into the country’s customs area, according to observers and enforcement officials. Cigarette manufacturers operating within the BBK are exempt from tobacco excise and value-added tax provided their products are sold within the zone, but authorities say some producers and traders exploit the system by illegally transporting untaxed cigarettes to other parts of Indonesia where tobacco products are subject to excise duties.

    In May, the Batam Customs and Excise Office recorded 11 enforcement actions involving the seizure of 1.3 million illegal cigarettes among 54 smuggling cases. However, experts believe the seizures represent only a fraction of the illicit trade. Suyono Saputra, an economics lecturer at Batam International University, said the loophole differs from traditional illicit cigarette cases elsewhere in Indonesia because the products are legally manufactured and sold within the free trade zone, but become illegal when diverted to the domestic market. He noted that producers can earn substantial profits by smuggling untaxed cigarettes out of Batam, highlighting the challenge authorities face in balancing the benefits of the free trade zone with efforts to curb tax evasion and protect government revenue.

  • Philippines Urges Early Tobacco Planting Amid El Niño Threat

    Philippines Urges Early Tobacco Planting Amid El Niño Threat

    The Philippines’ National Tobacco Administration (NTA) is urging farmers to begin planting tobacco earlier than usual to reduce the potential impact of an anticipated El Niño-induced dry spell, while maintaining its forecast for stable tobacco production in the 2025-2026 crop year. NTA Administrator Belinda Sanchez said the agency expects total tobacco output to reach about 51 million kg, including approximately 20 million kg of Virginia tobacco, broadly in line with last year’s levels.

    To help crops avoid peak summer dryness, the NTA is advising farmers to complete planting by mid-December rather than extending activities through the end of the month. Deputy Administrator Nestor Casela said earlier that planting would allow crops to benefit from existing soil moisture and improve their chances of surviving prolonged dry conditions. The agency has also prepared contingency support through its risk management and contract-growing programs for farmers affected by weather-related losses. Despite climate concerns, the NTA said market conditions remain favorable, with surplus inventories from the previous harvest largely absorbed by buyers. Trading of Virginia tobacco is expected to continue through the end of the month, supported by demand from major cigarette manufacturers including Japan Tobacco International and Philip Morris International, which source leaf through wholesale dealers such as Universal Leaf and Trans Manila Inc.

  • Plasencia Introduces First Global Brand Ambassador

    Plasencia Introduces First Global Brand Ambassador

    Plasencia Cigars announced that it appointed Rodrigo Medina Mendieta as its first-ever Global Brand Ambassador, creating a new role aimed at strengthening the company’s international presence and brand storytelling. The appointment recognizes Medina Mendieta’s nearly 11 years with the company, during which he helped expand Plasencia’s footprint across Europe, Asia, the Middle East and other global markets. As Global Brand Ambassador, he will represent the brand worldwide, working with retailers, distributors, media and consumers to promote the Plasencia family’s five-generation tobacco heritage, craftsmanship and vertically integrated approach to cigar production.

  • Maldives Seized 23,000 Illegal Vapes Last Week

    Maldives customs authorities seized 23,008 vape cartridges over the past week in a series of enforcement operations targeting illegal imports following the country’s vaping ban. The latest seizure occurred on June 20 at Malé Commercial Harbor, where 6,328 cartridges were found hidden inside a shipment declared as general cargo. Earlier interceptions included 1,108 cartridges and 27 vaping devices concealed in food packaging, as well as separate bulk seizures of 5,600 and 15,600 cartridges from cargo inspections conducted over recent days.

    Authorities have not disclosed the origin of the shipments or identified any suspects, stating that investigations are ongoing. Under the Maldives Tobacco Control Act, which banned vaping products in December 2024, import violations carry fines of MVR 50,000 ($3,250) plus MVR 10,000 ($650) per electronic cigarette or vape product, with total penalties in this case expected to exceed MVR 230 million ($15 million).

  • PMI Announces New Regional Leadership

    PMI Announces New Regional Leadership

    Philip Morris International announced a series of regional leadership changes effective August 1, as the company continues to advance its smoke-free transformation and implement the organizational structure introduced in late 2025. Marco Hannappel will become president of PMI’s Europe Region, succeeding Massimo Andolina, who was recently appointed Group Chief Financial Officer, while Can Kuterdem will take over as president of the Latin America and Canada Region.

    The appointments complete PMI’s four-region leadership model, alongside Gijs de Best, who assumed leadership of the South Asia, Indochina, CIS, Middle East and Africa Region in January, and Vassilis Gkatzelis, who continues to lead the East and Southeast Asia, Pacific and Global Travel Retail Region. All four regional presidents report to Frederic de Wilde, CEO of PMI International, which oversees the business unit generating the majority of PMI’s global revenue. The leadership changes align with PMI’s broader strategy to strengthen execution and support growth across its expanding smoke-free portfolio and evolving global consumer goods business.

  • CTIHK Expects Potential 30% Revenue Decline

    CTIHK Expects Potential 30% Revenue Decline

    China Tobacco International (HK) (CTIHK) announced that first-half 2026 revenue is expected to decline 25%–30% year over year, with profit attributable to shareholders falling 10%–15%, primarily due to lower tobacco leaf imports from the U.S. and other regions and delays in cigarette shipments to China’s domestic duty-free market. The warning underscores CTIHK’s continued dependence on traditional tobacco supply chains, with tobacco leaf imports, exports, and Brazilian operations accounting for about 88% of 2025 revenue, while new tobacco products contributed less than 1%.

    The company’s exposure to Chinese import planning, domestic demand, duty-free channel dynamics and global trade conditions remains a key driver of performance. Investors will see if leaf imports and duty-free shipments recover in the second half of 2026 and whether CTIHK can diversify beyond its traditional tobacco businesses.