Blog - Tobacco Reporter

Illicits Top Quarter Of Ukrainian Market

The share of illegal tobacco products reached 25.7 percent of the Ukrainian market in October, up from 19.5 percent in June and 20.2 percent in February, reports Interfax-Ukraine, citing data from the most recent Kantar Ukraine study.

The figure represents the highest share since Kantar began collecting information on the Ukrainian tobacco market.

The share of counterfeit products increased to 11.3 percent, and the share of products labeled for duty-free sales or export but sold illegally in Ukraine grew to 12.9 percent.

Measured over the entire year, illegal cigarettes accounted for 21.8 percent of the Ukrainian tobacco market.

The Ukrainian government missed out on an estimated UAH23.5 billion ($625.67 million) in tobacco tax revenues in 2023 due to illicit cigarette trade, according to calculations by Kantar.

December 21, 2023

Singapore Cracks Down on Travelers With Vapes

Singapore authorities will step up checks at air, land and sea checkpoints to prevent e-cigarettes from entering the city state, reports the South China Morning Post.

“Incoming passengers may be screened for e-vaporizers and their components at the arrival halls, and those found with e-vaporizers or their components will be fined,” said the Ministry of Health and the Health Sciences Authority in a media release.

Vaping is illegal in Singapore, and offenders can be fined up to SGD2,000 ($1,490). Those who import, distribute or sell such products face stiffer penalties, including a possible jail term.

Despite the ban, the number of people caught using and possessing vapes has been rising, including among underage consumers.

Apart from the border checkpoints, checks will be stepped up at places such as the central business district, shopping centers, parks and smoking areas as well as public entertainment outlets such as bars and clubs.

Since Dec. 1, enforcement officers from the National Environment Agency have been empowered to take action against people who use or own vapes.

Singapore authorities said that their multi-agency approach is aimed at protecting its population.

The World Health Organization said last week that urgent action is needed to control e-cigarettes to protect children and nonsmokers.

December 21, 2023

Warnings for Vapes Resembling Alcohol

On Dec. 20, 2023, the U.S. Food and Drug Administration issued warning letters to three online retailers for selling and/or distributing unauthorized e-cigarettes that imitate packaging for bottles of alcohol. These retailers sold Luckee Vape Daniels brands, which are flavored disposable e-cigarette products that come in a variety of common alcoholic drink flavors that may be appealing to young people, including icy pina colada, frozen strawberry daiquiri, frozen mangorita and watermelon martini.

Data from the 2023 National Youth Tobacco Survey indicate that disposable products are the most commonly used type of e-cigarettes among U.S. middle and high school students. Among current youth e-cigarette users, approximately nine in 10 reported using flavors, with fruit flavors being the most popular (63.4 percent) and about one in 14 (7.2 percent) reporting use of products with alcoholic drink flavors.

“FDA is committed to taking action across the supply chain, including among retailers, to remove unauthorized tobacco products from the marketplace,” said Brian King, director of the FDA’s Center for Tobacco Products, in a statement. “This includes continued monitoring of the online marketplace to identify and combat against emerging products of concern.”

December 21, 2023

Lawyers Seize on BAT’s Impairment Notice

British American Tobacco’s recent decision to write down the value of some of its U.S. brands has spawned a frenzy among law firms eager to represent investors who feel shortchanged by the multinational’s move.

On Dec. 6, BAT disclosed that it would take an impairment charge of approximately $31.5 billion after reassessing the value of certain cigarette brands, including Newport, Pall Mall, Camel and Natural American Spirit.

The write-down reflects the diminished outlook for combustible tobacco products, according to BAT. CEO Tadeu Marroco described it as “accounting catching up with reality.”

Following the announcement, BAT’s stock price fell by 8.5 percent, to close at $28.86 per share on Dec. 6, 2023, causing investors to lose money.

At least three law firms, including Frank R. Cruz, Howard G. Smith and Pomerantz, have started investigating BAT on behalf of investors for possible violations of securities laws.

Each of them is encouraging investors to join their legal cases.

While acknowledging the short-term pain, others have praised BAT’s impairment as a realistic move, noting that it would be irresponsible to ignore the reality of a shrinking market for traditional tobacco products.

In a recent op-ed for Tobacco Reporter, Brand Finance Group Managing Director Richard Haigh described the write-down as “a positive step in BAT’s journey toward a resilient future.”

December 21, 2023

Desert Summit

World Tobacco Middle East Dubai remains the premier tobacco trade show in the region.

TR staff report

World Tobacco Middle East Dubai (WTME) is one of the oldest and most successful tobacco trade shows still operating. This year, the 2023 event continued that storied success. Held Nov. 27–28, 2023, the event featured the latest trends, innovations and products from around the world, according to a report by Wingle Group Electronics, a data resource firm.

The exhibition was also accompanied by conferences where experts and industry leaders shared their knowledge and experience.

This year, more than 7,000 visitors and more than 250 exhibitors from more than 90 countries made the WTME 2023 one of the most popular in the event’s history. WTME is the flagship exhibition of the World Tobacco series, which annually gathers over 13,000 professionals.

WTME is “where the past meets the future, and innovation converges with tradition, facilitating a rich tapestry of discussions that will influence strategies, policies and the very essence of the tobacco industry. It serves as a platform where knowledge is not just shared but cultivated and refined through collaborative discourse,” Orchid Tobacco Dubai wrote in a blog post.

“This exhibition is not just about showing tobacco products,” the company added. “It’s like looking into the future. You can expect to see new and better ways of farming tobacco, the latest technology in making tobacco products and smarter ways to get these products to people.”

With new exhibitors from HTL Human Trust Lean, Khyber Tobacco Co., Multi Tabak, Ora Tobacco and Mind Spirit Designs and Works as well as returning companies such as Sopariwala, Kaane, ARD, Gulbahar and Premium Tobacco, WTME 2023 offered visitors an even wider range of products and services than previous years.

According to WTME attendees, WTME has helped to redefine industry standards, set new trends and shape practices in the tobacco industry. The gathering is not just about showcasing products; it’s a dynamic exchange of ideas and a catalyst for transformation.

Getmore Mangundu, managing director at Sub Sahara Tobacco, said WTME is a complete experience that goes beyond just doing business. “It’s been a very successful show for us; it has been quite an exciting time,” she told Quartz Media representatives. “We’ve managed to catch up with our old clients but also managed to meet some new clients in this [industry] from all over [the world].”

One of the best attributes of WTME is that the show is a place where the old meets the new, where innovation meets tradition and where discussions take place that will influence the strategies, policies and the essence of the tobacco industry. Yohanes Priatama, brand and marketing manager for BMJ, said the WTME platform fosters collaborative discourse that cultivates and refines knowledge rather than just sharing it.

“The presence of our brands is very important for us,” he said. “It’s the right place to make new connections.”

December 20, 2023

Reviewing Their Peers

CoEHAR’s REPLICA Project evaluates nicotine-related science to ensure that policymakers and the public receive correct and reliable information.

By Stefanie Rossel

Nicotine products, stakeholders agree, should be regulated based on scientific evidence. Unfortunately, an increasing volume of research underpinning policy appears to be based on questionable science, where researchers are unable to replicate the results. This “reproducibility crisis” occurs across various disciplines, including psychology, medicine and natural sciences. The phrase was coined in the early 2010s, and efforts to remedy the problem have led to the creation of a new scientific discipline, meta science.

To tackle the reproducibility crisis in the nicotine sector, the Center of Excellence for the Acceleration of Harm Reduction (CoEHAR) in November 2019 launched the REPLICA Project, an initiative to independently validate the results of e-cigarettes and heated-tobacco products (HTP) studies.

“Annually, billions of dollars are poured into biomedical research, yet more than half of these studies cannot be replicated due to flawed experimental designs, inadequate methodologies and faulty statistical analyses,” explains Riccardo Polosa, the founder of the CoEHAR, who also is a full professor of internal medicine in the Department of Clinical and Experimental Medicine of the University of Catania in Italy. “Bad science holds back medical progress,” he says. “The challenge of replicability is widespread, spanning numerous scientific domains, including the field of THR.”

According to Polosa, the problem is amplified due to the contentious nature of tobacco and nicotine. “Often, the focus seems more centered on perpetuating controversy rather than prioritizing public health concerns,” he says. “The unfortunate reality is that there appears to be minimal interest in resolving the replicability crisis within the field of THR science, as it may conflict with the mainstream anti-THR narrative.”

Unique Approach

The REPLICA Project replicates published in vitro toxicity studies with the help of seven research laboratories spread over various countries, including the U.S., Indonesia and Serbia. According to Polosa, this approach is unique. “Its success hinges on complete harmonization between these research labs, necessitating ongoing international training, adherence to standard operating procedures and uniformity in lab equipment/material,” he says.

“We uphold the highest tobacco research standards, employing ISO-regulated setups for smoking/vaping laboratories and approved standardized smoking/vaping machines in our replication studies. While you cannot directly compare the REPLICA’s approach with the individual studies we replicate, many of the studies we aim to reproduce lack adherence to the best tobacco research standards. They often overlook smoking/vaping laboratory standards regulated by ISO guidelines and resort to unregulated homemade smoke/vape machines. Our methodology aligns with the open science principle—in contrast to the works we assess, which frequently present methodological ambiguities and sometimes obscure interpretations of data.”

According to Polosa, the advantage of REPLICA’s cooperation model lies in the consensus reached when results from one laboratory align with those from others. This, he says, ensures a more reliable basis for new knowledge. Replication, Polosa adds, bolsters confidence in scientists’ findings.

“Furthermore, this networking model of multiple research labs united in pursuing a common objective fosters unique opportunities for knowledge sharing and building capacity, thereby ensuring elevated standards in THR research,” says Polosa. “In line with [the] CoEHAR vision and mission, nascent labs in low-[income] and middle-income countries can connect with the REPLICA consortium, providing them with the chance to thrive. Specifically, young researchers from Serbia and Indonesia have been offered CoEHAR mobility training programs at the University of Catania under the guidance of REPLICA researchers.”

Promoting Understanding

In the first phase of the REPLICA Project, which ran until 2022, researchers replicated seven studies. The project initially focused on independently verifying science published by the tobacco industry. As it gained expertise, the project also began evaluating papers published by academia in scientific journals.

“Each decision to replicate a study revolves around identifying topics vital for better understanding of the THR paradigm and for improved protection of human health,” explains Polosa. “In addition, feasibility considerations for all partners within the study’s framework become paramount. Although consideration about studies that appear to be flawed are secondary, we occasionally opt for studies that are partially well-executed, recalibrating inadequately set parameters. This meticulous approach aims to inform the scientific community, regulatory bodies and lay public with credible and comparable data that mirrors the normal condition of use of combustion-free nicotine products.”

In several studies, the REPLICA Project researchers were able to replicate outcomes. “Specifically, our investigations revealed consistent evidence indicating the reduced capacity of e-cigarettes and HTPs to induce cytotoxicity, inflammation, endothelial damage, genotoxicity and mutagenesis in human lung epithelial and endothelial cells,” says Polosa.

Other studies revealed irregularities, however. “We’ve pinpointed noteworthy methodological flaws in at least three recently replicated studies,” says Polosa. “For instance, one study encountered issues due to an inadequately supplemented culture medium, resulting into abnormal cytotoxicity in cells. In another instance, researchers used incorrect fluorochromes, hindering the clear distinction of adhesion events of inflammatory cells to the vascular bed. Lastly, flavors were vaporized at excessively high temperatures using a furnace instead of the intended vaping machine under standard conditions of use. These identified flaws are either in the process of being addressed or have been thoroughly examined and will be disclosed in forthcoming peer-reviewed publications.”

According to Polosa, the reported shortcomings relate not only to scientists’ mistakes but also the editors and reviewers who approved the publication of low-quality research.

Providing Accurate Information

Polosa says that CoEHAR’s researchers actively seek out the original authors to discuss methodological shortcomings and to request additional information with the goal of establishing productive collaboration and enhance the replication protocol. “Unfortunately, this is not as straightforward as it should be,” he says. “Previously, we encountered situations where authors offered only partial responses to our concerns, leading to increased confusion regarding their ‘irregular’ approaches in their scientific work.

“Regrettably, this lack of comprehensive information resulted in the abandonment of replication attempts in most cases. Often, eminent scholars in this field, despite their expertise, unintentionally make errors in their study approaches. However, some may hesitate to acknowledge or fail to grasp these errors. Through focused scientific engagement, our aim is to educate researchers, especially those new to the THR paradigm, facilitating a deeper comprehension of these intricacies.”

While the CoEHAR team hasn’t encountered many studies that warrant retraction, there have been instances that would justify such a course of action, like the most recent one investigated, which has not been published yet. “We’re considering this course of action pending discussions with the original author,” says Polosa. “It’s important to note that while some studies may not be inherently flawed, they might be inadequately aligned with the subject matter. For example, certain studies might provide valuable insights in other areas but fall short in their relevance to evaluating the effects of vaping. When the study setting is drastically different from the context of vaping, its conclusions can’t be responsibly applied to this specific practice. It’s akin to studying the impact of a bicycle accident at 350 km/h and then advocating to ban bicycles due to their perceived risk, a distortion of reality that fails to accurately address the intended subject.”

The project’s foremost objective, Polosa insists, is to provide accurate information to the public rather than preserving the reputation of the scientists behind the original studies. “While retractions aren’t taken lightly and involve careful consideration, our obligation remains toward ensuring the public and policymakers receive correct and reliable information.”

Phase Two

CoEHAR is funded by the Foundation for a Smoke-Free World (FSFW), which was financed exclusively by Philip Morris International until Oct. 20, 2023, when the organization announced it would no longer accept tobacco funding in an effort to address concerns about is independence. Polosa emphasizes that credibility of his team’s work is not an issue if REPLICA studies debunk original science. “Although we’re relatively new, our credibility is steadily building,” he says. “The strength of CoEHAR’s REPLICA project rests in its robust, high-quality research, consistently published in reputable scientific journals. Despite funding ties with FSFW, our project has swiftly garnered a positive reputation worldwide. This funding association doesn’t diminish our research’s significance. REPLICA’s growing scientific output unequivocally proves this point.”

Increased funding should be directed toward replication studies of THR products, notes Polosa. “Stakeholders need to commit additional resources to this vital research area,” he says. “We are grateful to the FSFW that has recognized the importance of replicability in science and has generously provided cutting-edge equipment and other resources, supporting our mission to reinvigorate replication science in THR.”

Engaging with media outlets to communicate findings from replication studies is an essential aspect of the project. “However, a significant challenge arises when the original study’s results were sensationalized, as there might be little motivation to rectify misinformation if the correction lacks the same attention-grabbing quality,” says Polosa.

He cites the example of the 2019 EVALI crisis in the United States, when an initially mysterious outbreak of lung injuries was at first erroneously attributed to nicotine vaping but later turned out to have been caused by adulterated (and illegal) THC products. Once the original, sensationalized narrative had spread, it became difficult to correct.

“Similarly, in the realm of in vitro toxicological studies investigated by the REPLICA researchers, algorithms often prioritize popularity over accuracy, complicating efforts to disseminate corrected information effectively,” say Polosa. “Despite these hurdles, our commitment remains steadfast in sharing our findings extensively with the public, academia and relevant stakeholders.

“While our replication efforts are starting to gain traction in shaping public opinion and influencing regulatory bodies, the primary goal of our studies is to assess ongoing and future research and prevent recurring errors within THR science. Ultimately, our aim through this correction process is to dispel substantial misconceptions about the health risks associated with combustion-free nicotine products. As we progress, we anticipate a reduction in sensationalized and inaccurate reporting by the media, leading to a more informed and balanced understanding among the public and policymakers.”

In 2023, the REPLICA Project entered its second phase, which among other things aims to align the project’s studies with academic research while elevating the complexity level. “Our focus is on replicating and expanding studies conducted in collaboration with partners,” says Polosa.

“Specifically, we’ll conduct thorough screenings for cytotoxicity and mutagenicity, examining increasing concentrations of most common vaping flavors. These results aim to ascertain the safety of these flavors and their concentrations for inhalation. Within our REPLICA 2.0 project, we aim to shed light on the potential impact of nicotine on cancer development. Employing a comprehensive approach, we’ll utilize various assays to screen for carcinogenicity. Regulatory bodies like the U.S. Environmental Protection Agency and the International Agency for Research on Cancer heavily rely on these models’ data to classify substances and make informed regulatory decisions.”

Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

December 20, 2023

Strategic Impairment

BAT’s write-down of its U.S. cigarette brands is a positive step in its journey toward a resilient future.

By Richard Haigh

Earlier this month, BAT announced a $31.5 billion impairment on the value of some of its U.S. cigarette brands. The affected brands, including Newport, Camel, Pall Mall and Natural American Spirit, will see their value on BAT’s balance sheet adjusted to a finite lifetime of 30 years, resulting in a noncash impairment charge. This signifies the first instance where a major global tobacco company has written off some of the value of its traditional cigarettes business in a significant market such as the United States.

BAT’s write-down highlights the challenges faced by traditional tobacco businesses in the wake of evolving industry dynamics. BAT attributes the move to economic challenges in the U.S., where inflation-weary consumers are shifting to cheaper brands, as well as the rise of illicit disposable vapes. Furthermore, intensifying regulatory environments and the heightened awareness of health risks have resulted in a decline in cigarette sales volumes in certain markets. These are predicted to continue to fall, with BAT adding that global tobacco industry sales volumes will be down around 3 percent in 2023.

Responding to Change

The decision to write down the value of some of its brands was a bold step for BAT because, despite the short-term pain, the reality is that the market for cigarettes is shrinking, and pretending otherwise would be irresponsible on the part of management.

In the past, failure to embrace change has decided the fate of several top brands. Blockbuster, a giant in the video rental industry with thousands of stores worldwide, failed to recognize the shift toward online streaming and mail-order DVD services. In 2010, Blockbuster filed for bankruptcy, unable to compete with the likes of Netflix. Kodak, which resisted the shift to digital cameras, suffered the consequences, filing for bankruptcy in 2012. Nokia, once a dominant force in the mobile phone industry, struggled to adapt to the rise of smartphones and the popularity of app ecosystems. Nokia’s market share declined rapidly, and eventually, it sold its mobile phone business to Microsoft in 2014. These all serve as cautionary examples.

BAT’s move is crucial in the context of the company consciously steering away from potential pitfalls, showcasing a commitment to survival and growth in new categories. The company is already investing heavily in alternative products, focusing on vaping and oral nicotine and wants 50 percent of its revenues to come from these by 2035.

Correlation Between Leadership Tenure and Impairments

Tadeu Marroco assumed the role of CEO in May 2023. Having previously served as BAT’s finance director, Marroco has played a crucial role in guiding the company through a transformative phase, emphasizing growth in emerging categories such as vapes and e-cigarettes.

The correlation between tenure length and significant impairments is an interesting one to note. When assessing 2019’s largest impairments, a common thread emerges: new leadership, as depicted in the charts accompanying this text. In this context, BAT’s decision is not an isolated incident but rather a strategic response to industry challenges, reflecting a broader pattern observed in companies experiencing changes in leadership.

When looking at 2019’s biggest goodwill impairments, except for Procter and Gamble and CenturyLink, all companies listed had either a new CEO, a new chief financial officer (CFO) or both. Most of these companies’ previous leaders decided not to take an impairment in 2018. CenturyLink did take an impairment in 2018, when it also had both a new CEO and CFO. Therefore, new leadership appears to have a significant impact on the likelihood a company will impair its goodwill. Among the entire sample, we found that 30 percent of all impairments occur within the first year of having a new CEO or CFO.

For larger impairments, where the impairment represents at least half of the goodwill carrying amount, 41 percent of these occur within the first year of new leadership. At best, this analysis suggests that goodwill impairment can be influenced by varying personal opinions of management personnel and their perceptions of outlook and risk. At the worst, this analysis suggests that there may be an ulterior motive within the decision to impair goodwill. By taking an impairment at the beginning of your tenure as a CEO or CFO, it helps you to either set a precedent that suggests your predecessor was negligent/overoptimistic about their acquisitions or influence the share price to fall initially then rise throughout the rest of your tenure.

Given these insights, the timing of the impairment—just nine months into Marroco’s tenure as CEO—aligns with broader trends observed in companies with leadership changes. Adding to the leadership transition, BAT has recently appointed a new CFO, scheduled to assume the role in April 2024.

Looking Ahead

BAT’s impairment announcement should be viewed as a positive and necessary step in the company’s journey toward a resilient future. Rather than focusing solely on the financial implications, stakeholders should recognize the strategic foresight behind this decision.

However, the industry is consistently grappling with challenges. Plain packaging laws have notably evolved, gaining increased comprehensiveness in some countries. These regulations now extend their coverage from traditional tobacco products to encompass heated tobacco, tobacco accessories and other nicotine-containing items. Adding to the recent developments, this month, the World Health Organization has shifted its focus to vaping, urging governments to apply tobacco-style control measures to address this emerging concern.

Therefore, BAT and other tobacco companies must proactively adapt their strategies, leveraging innovation and regulatory compliance, to navigate the evolving landscape and ensure long-term success in an industry marked by ever increasing health-related safeguards and regulatory barriers.

Richard Haigh is group managing director at Brand Finance.

December 20, 2023

Aiming Low

Producing tobaccos with ‘minimally addictive’ levels of nicotine presents significant challenges for breeders and growers.

By Stefanie Rossel

In recent years, several countries have been considering mandates for manufacturers to reduce nicotine in combustible tobacco to “minimally addictive levels”—that is, under 0.5 mg/g. By decreasing the habit-forming ingredients, the thinking goes, cigarettes will become less attractive and consumption will decrease.

A webinar organized by Coresta on Dec. 5, 2023, highlighted the current understanding of LNT production capabilities as well as the successes and failures of applied research in the areas of genetics and agronomy.

Ramsey Lewis, a university faculty scholar at North Carolina State University in Raleigh, North Carolina, USA, spoke about the opportunities offered by modified plant genetics to reduce tobacco nicotine levels. A standard cigarette filler contains 15 mg to 25 mg of nicotine per gram or 1.5 percent to 2.5 percent, he noted; the World Health Organization recommends a 35-fold reduction, which corresponds to 0.4 mg/g or 0.04 percent of nicotine.

Nicotine is the most abundant alkaloid in tobacco, accounting for 90 percent to 95 percent of the alkaloid content. As alkaloids are natural plant products, nicotine levels in a tobacco variety depend on genetics and the environment. In the U.S. Nicotiana tabacum collection, there are several lower nicotine species. A decrease in nicotine, however, means an increase in nornicotine, a carcinogenic tobacco-specific nitrosamine.

Lewis described various low nicotine genetics experiments his team had conducted in 2023, where different known nicotine-expressing genes had been inactivated. While a transgenic approach got them close to a 0 mg nicotine content, the plants in the field were dramatically reduced. In addition, the LNT was high in nornicotine, and its cured leaf quality was altered—both side effects that regulatory authorities wouldn’t accept, Lewis explained. His experiments, which also included a greenhouse trial, showed altered gene expression and altered physiology in low-nicotine plants.

Plants are living things and complex, Lewis pointed out, which results in several issues for tobacco growers and buyers of low-nicotine tobacco. At present, there are only a small number of commercially available varieties, which means that if LNT was suddenly mandated in a market, the regulation could practically not be translated into action.

Nicotine is also the natural defense mechanism of tobacco plants. The lower its content, the more the plant is susceptible to disease and insect pests. Lower nicotine also results in lower yields and higher production costs. In addition, Lewis predicted global issues with the “new breeding methodology” and problems with co-mingling. He also raised the question of what should be done with tobacco containing more than 0.4 mg/g of nicotine.

An Ambitious Target

Anna Malpica, breeder and R&D manager of Bergerac Seed and Breeding (BSB), a seed company owned by the French growers’ association, introduced her organization’s breeding programs for low-nicotine and ultra-low nicotine tobacco varieties and evaluated the impact of lower alkaloid lines on plant defense. BSB focuses entirely on practical breeding projects. Being based in Europe, the company uses non-GMO and non-gene-editing techniques in its programs. For LNT, the breeder target is to achieve reduced and stable nicotine levels with an industrial variety.

Nicotine is synthesized exclusively in tobacco roots, transported to leaves and stored in the leaf cell vacuole to protect the plant when it is stressed. The biggest stress for the plant occurs during topping, which is done to reduce the dry matter production in the leaves and improve the plant’s quality. The genome sequence of tobacco provides a large inventory of structural and regulatory genes involved in the now well-known and described nicotine pathway, Malpica related. Researchers benefit from ever more precise studies that quantify the influence of the production environment and the crop management on the nicotine rates in tobacco leaves.

In its plant breeding strategies for low-nicotine and ultra-low nicotine flue-cured (FC) tobaccos, BSB resorts to three key raw matter sources: a germplasm collection including wild tobaccos with nicotine levels of 0.01 mg/g to 3.97 mg/g; U.S. FC historical lines; and short-cycle, ripening breeding lines originating from North Europe. The shorter the plant cycle, the less nicotine accumulation is observed in the plant, she noted.

BSB creates large segregating populations from the best seeds, applying strong selection pressure oriented on nicotine rates. It also secures and selects yield quality and some target resistance genes. The objective is to obtain low-nicotine varieties with nicotine levels under the company’s threshold of 10 mg/g. For its ultra-low nicotine breeding programs, BSB adds lines with mutations as initial donor material. The company is capable of breeding very-low nicotine lines with a controlled average nicotine rate of under 1 mg/g. A look at BSB’s low-nicotine breeding activities between 1997 to 2023 revealed that the threshold of 0.4 mg/g has not been reached yet in BSB’s usable lines, though.

In 2023, the company investigated the impact of low-nicotine breeding on yield, quality and plant defense in a trial using burley, dark and FC varieties. On average, no decrease of yield was observed in the low-alkaloid (LA) varieties. BSB says it has been able to compensate for the genetic yield decrease of the LA lines by population breeding. This, however, could not make up for the lower quality, which on average declined by 24 percent. The lowest nicotine level was obtained in an XC stalk position with 1.5 mg/g in a burley variety. Higher nicotine varieties were less susceptible to budworms whereas there was no significant impact of the nicotine rate on the plants’ susceptibility to the tobacco flea beetle. The role of nicotine on the plant defense front, researchers presumed, may vary from one insect species to another.

In conventional breeding, Malpica concluded, low nicotine levels of 5 mg/g to 15 mg/g can be obtained with conventional breeding and adapted agronomical practices. They are available from BSB as commercial varieties. Ultra-low nicotine contents of under 0.4 mg/g with acceptable behavior regarding quality and aroma, however, seem difficult to achieve with stability from conventional breeding and are not part of BSB’s portfolio yet.

Time of Topping

T. David Reed, extension agronomist for tobacco at the Virginia Tech Agricultural Research and Extension Centers, provided a closer look at the agronomic practices impacting nicotine concentration of FC tobacco. He referred to a 2019 study by Henry, Vann and Lewis, which suggested that proposed regulations mandating lower nicotine concentrations in tobacco products would likely require changes in tobacco production while maintaining yield and quality.

In standard FC tobacco production practices, Reed pointed out, a population of 13,600 plants per hectare to 16,100 plants per hectare is typical. The topping height is between 18 leaves to 22 leaves per plant, and the total number of leaves amounts to around 296,000 per hectare.

Topping is a standard production practice, and its timing impacts yield and sucker control. When topping is delayed past the early flower stage, a yield loss of 17 kg per hectare per day may occur. With late topping, the cured leaves are thinner and less bodied.

Regarding fertilization, nitrogen is the most responsive nutrient in terms of tobacco yield and quality. The nitrogen fertilization rate is determined based on soil texture and depth to a clay layer as well as field history. The recommended nitrogen rate is 67 kg to 90 kg per hectare but can be as high as 112 kg/ha.

While tobacco is relatively drought tolerant, it is responsive to rainfall and irrigation, with too much rain being a more common occurrence. Unlike other crops, such as certain grains or soybeans, tobacco is not as dependent on timely rainfall to produce an adequate yield. Dry conditions paired with high temperatures can impact cured leaf quality and leaf chemistry.

According to Reed, the number of harvests or primings has decreased in recent years. For most growers, three harvests are typical; some harvest four times. The time from topping to harvest can range from 8 weeks to 14 weeks or more on a given farm.

Tobacco growers, Reed emphasized, choose their agronomic practices in order to maximize their yield potential of high-quality, marketable tobacco. Leaf chemistry, sugar or nicotine content are not part of their consideration.

Reed quoted three studies by Caleb Hinkle that investigated plant population, topping time and topping height of low-nicotine FC production practices in field trials in 2019 and 2020 as well as a collaborative Coresta study of the low-nicotine tobacco agronomic production practices task force. Modified production practices with low-nicotine FC varieties, he concluded, did not consistently reduce nicotine to the proposed target levels. While plant population, topping height and nitrogen fertilization rate had minimum impact, delayed topping had a significant effect, with no topping having the greatest impact on nicotine. Not topping tobacco, Reed stressed, is not commercially viable in the U.S. The growing season was a major factor on nicotine levels. Both yield and leaf quality, as currently measured, were significantly lower with low-nicotine flue-cured varieties. Leaf texture and body were altered, which impacts the handling of the cured leaf.

Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

December 20, 2023

Thailand Urged to Strengthen Enforcement

Thailand should strengthen its monitoring and enforcement of e-cigarettes, according to World Health Organization representative Jos Vandelaer, reports The Nation.

Speaking at the Thai Health Promotion Foundation on Dec. 18, Vanderlaer praised the kingdom’s decision to prohibit vaping in the country.

However, because vaping is still widespread in Thailand, he believes the government must do a better job of enforcing the law.

Vandelaer rejected the notion that e-cigarettes are an effective smoking cessation tool, as claimed by tobacco harm reduction activists. “Don’t get fooled,” he was quoted as saying. “There is as of now no evidence that the commercialization of e-cigarettes as consumer products has had a net benefit for public health.”

According to a recent study by the Faculty of Medicine Ramathibodi Hospital, 8.8 percent of Thais aged 13 to 15 used e-cigarettes in 2021, up from 3.3 percent in 2015.

Vanderlaer’s comments come in the wake of a WHO statement urging action to prevent the uptake of e-cigarettes to counter nicotine addiction. On the same day, the global health body released a technical note with detailed information on the evidence and factors underpinning its guidance.

December 20, 2023

Ireland Halts Vape Tax

Ireland’s finance minister, Michael McGrath, postponed a vaping tax over concerns that it would discourage smokers from quitting with e-cigarettes.

Officials from the Department of Finance cited the need to strike a balance between discouraging young people from vaping and supporting existing smokers who switch to e-cigarettes to quit. Health officials recommended e-cigarettes be taxed differently based on their comparative harm versus traditional cigarettes, according to media reports.

McGrath has said a new tax on vapes will be “challenging” to implement. “A domestic tax will require significant IT, administrative, control and compliance costs,” he said.

Tobacco harm reduction activists applauded the decision. “We welcome the decision of the minister of finance and ask the Irish government to keep a tax differential between electronic and traditional cigarettes in the future large enough to incentivize smokers to switch,” said Michael Landl, director of the World Vapers’ Alliance, in a statement.

“The risk profile of vaping products is much lower than that of combustion cigarettes, and they should be taxed as such. If the tax had been approved, it would have pushed tens of thousands of vapers back to smoking.”

The government has not specified a new date for the vape tax. Some suspect it may await the updated EU Tobacco Tax Directive, which is expected to include an EU-wide excise tax on vaping products.

December 20, 2023