Major U.S. payment providers and fuel retailers are warning merchants against selling unauthorized vaping products as enforcement against the illicit market intensifies. According to Reuters, Fiserv subsidiary CardConnect, along with BP, Marathon Petroleum, and Valero, advised partners over the weekend that selling unauthorized e-cigarettes could result in significant fines, loss of payment processing services, or other compliance actions. The warnings follow pressure from a coalition of U.S. state and local law enforcement officials and come after Mastercard cautioned it would investigate transactions involving illegal vape sales.
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Vuse Unveils Collaboration at Berlin Fashion Week
BAT Germany’s Vuse announced the expansion of its partnership with designer Marina Hoermanseder, unveiling a custom case for the Vuse Ultra device and Ultra Smart Pods during Berlin Fashion Week as part of the designer’s Spring/Summer 2027 show. Inspired by Vuse flavors, the accessory will be offered in three color variants — True Blueberry, Strawberry Fuchsia, and Elegant Tobacco — and will go on sale in October for €29 through Vuse’s website, selected retail locations, and the Vuse Loyalty Club. Following a successful collaboration with the designer last year, the new collection is part of Vuse’s “Follow your vibe” campaign, which emphasizes design, flavor, and personal expression.
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UKVIA Forum Targets Vaping Policy Challenges
The UK Vaping Industry Association will unveil new research on the expected impact of the UK’s Vaping Products Duty at its July 13 forum, including findings on consumer behavior, smoking cessation, illicit trade, and stop-smoking services. The association will also release results from a survey of more than 3,500 consumers highlighting the importance of flavors, along with Freedom of Information data on flavor use in local stop-smoking services. UKVIA said the findings are intended to inform debate on upcoming vaping regulations, retailer licensing, and enforcement against illicit sales as the UK prepares to implement the Vaping Products Duty in October.
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Israeli Health Study Says 40% of Population Exposed to Second-Hand Smoke
A new Israeli Health Ministry report estimates that about 4 million people are exposed to secondhand cigarette smoke entering their homes from neighboring apartments, with more than 2 million experiencing exposure at least weekly. The report, based in part on data from the International Tobacco Control Policy Evaluation Project, calls for stronger public health measures and highlights widespread misconceptions about secondhand smoke exposure, including from balconies. The findings come as Israel’s Supreme Court considers a case that could require government ministries to introduce regulations addressing residential tobacco smoke infiltration.
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Philippines’ Tobacco Taxes Rise for First Time in Three Years
The Philippines’ tobacco excise tax collections rose 12.25% to ₱150.9 billion ($2.41 billion) in 2025, exceeding the Bureau of Internal Revenue’s (BIR) target of ₱149.6 billion ($2.39 billion) and ending a three-year streak of missed revenue goals. The increase was driven by a 29.2% rise in tobacco product removals to 2.9 billion units, including cigarettes, cigars, heated tobacco products, and vapor products, along with stronger enforcement against illicit trade and enhanced monitoring through tax stamps, floor-price rules, and other compliance measures.
BIR Commissioner Charlito Martin Mendoza said the agency plans to further strengthen its digital track-and-trace capabilities through the Special Products Automated Revenue Collection System (SPARCS) to improve supply chain oversight and combat tax evasion. For 2026, the BIR has set a tobacco excise tax collection target of ₱166.6 billion ($2.7 billion) as part of its overall excise tax revenue goal of ₱359.7 billion ($5.8 billion).
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ASEAN Countries Feeling Illicit Cigarette Pressures
A new report by the EU-ASEAN Business Council estimates that illicit tobacco products accounted for 23.6% of tobacco consumption across six major ASEAN markets in 2025, with the share projected to rise to 27.8% by 2028. The report estimates illicit cigarettes reached 85 billion sticks in 2025, resulting in $6.3 billion in lost government revenue across the region. In Thailand, illicit cigarettes represented 23.6% of the market in 2025, up from 22.6% a year earlier, contributing to an estimated $1.4 billion (45 billion baht) in lost tax revenue over 2024-2025. Most illicit products are believed to be imported from neighboring countries or are counterfeit products entering through land borders.
The report identifies price disparities between legal and illicit products, cross-border smuggling, and growing online sales through e-commerce and social media as key factors contributing to the illicit market. It also notes that while Thailand uses QR code-enabled tax stamps, track-and-trace systems remain uneven across the region, creating enforcement gaps. The report recommends strengthening border controls, expanding track-and-trace systems, improving international cooperation, and enhancing enforcement to curb illicit trade while supporting public health and protecting government revenues.
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Capital Group Increases KT&G Ownership to 8.22%
U.S.-based investment manager Capital Research and Management Company increased its stake in South Korea’s KT&G to 8.22%, continuing a series of purchases that began in May and signaling growing confidence in the tobacco company’s international growth strategy. Capital Group now holds about 8.53 million shares, up from 7.21% in June and 5.61% in May, according to regulatory filings.
KT&G said the increased investment reflects recognition of its growth potential as the company continues to expand overseas, following record first-quarter international cigarette sales of 559.6 billion won ($363.7 million). The company reported first-quarter revenue of 1.7 trillion won ($1.1 billion), and operating profit of 364.5 billion won ($236.9 million), up 14.3% and 27.6%, respectively, from a year earlier, and said it plans to introduce a new shareholder return policy later this year.
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Macau to Significantly Raise Vape Fines
Macau is moving to strengthen its tobacco control law by increasing the fine for illegally bringing e-cigarettes and other novel tobacco products into the territory from MOP4,000 to MOP10,000 ($480 to $1,200) as part of a broader legislative overhaul. The revised bill, which is proposed to take effect on January 1, 2027, would also introduce fines of MOP1,500 ($180) for individuals found in possession of e-cigarettes, while businesses could face penalties ranging from MOP20,000 to MOP200,000 ($2,400 to $24,000). The legislation would prohibit the possession and use of e-cigarettes beginning July 1, 2027, introduce standardized tobacco packaging and larger health warnings from July 1, 2028, and increase warning labels on cigars and cigarillos to cover 70% of each side of the packaging. Officials said the higher import penalties are intended to deter cross-border smuggling of e-cigarettes and other nicotine products.
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PMI Exec: Lack of Rules Boosts Illegal Segment
Nick Ricketts, PMI’s president of oral products, said regulatory clarity is essential for the development of nicotine pouch markets and the protection of consumers. In an interview with Logos Press, he said, “When there are no rules, the market shifts to the illegal segment.”
Ricketts argued that nicotine pouches should be integrated into regulated systems rather than banned, with clear product standards, nicotine limits, flavor rules, age verification, and marketing restrictions. He pointed to regulatory models such as FDA oversight in the U.S. and structured national frameworks in parts of Europe as more effective than outright prohibitions. He said bans can push demand into illicit channels, weakening quality control and age enforcement, citing Germany and Belgium as examples. He highlighted Sweden as a benchmark, where long-term access to smoke-free alternatives and supportive tax policy have coincided with very low smoking rates. He also said PMI views nicotine pouches as part of its broader smoke-free portfolio, with growing availability across global markets under increasing regulatory oversight.
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Australia’s ‘Tobacco Wars’ See 10 Businesses Set Ablaze
Melbourne’s ongoing “tobacco wars” escalated today (July 6) after a suspected ram raid and arson attack destroyed a tobacco shop in Abbotsford and damaged about 10 neighboring businesses. Fire Rescue Victoria deployed 80 firefighters and 25 trucks after crews arrived to find the building fully engulfed in flames, bringing the fire under control by 6 a.m. Victoria Police said unknown offenders drove a vehicle into the shop before setting it alight and fleeing. No injuries were reported, but a crime scene has been established, and an investigation is underway, while road and tram closures disrupted traffic in the area.