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Serving the Spice Islands

Hertz Flavors celebrates its first year of operating in Indonesia.

By Taco Tuinstra

Visiting Indonesia is a multisensory experience. Breathtaking landscapes, bustling traffic and a spicy cuisine will keep the traveler’s eyes, ears and taste buds working overtime. And for the nose, there is the sweet scent of clove tobacco. Kretek cigarettes are almost as synonymous with Indonesia as the country’s ancient temples and majestic volcanoes.

Contrary to the situation in many other countries, tobacco remains unabatedly popular throughout the archipelago, with a substantial share of the adult population lighting up frequently. Indonesia is also a leading producer of leaf tobacco and cigarettes. In 2022, the country’s tobacco growers harvested 225.58 million kg of leaf, and its cigarette companies purchased excise stamps for more than 330 billion sticks, according to the Ministry of Agriculture and the association of white cigarette producers in Indonesia, Gaprindo, respectively (the country also struggles with a sizable illicit market). Vapor and tobacco-heating products have been making steady inroads too lately, especially in urban areas.

Against such a backdrop, it is hardly surprising that industry suppliers have been lining up to set up shop in the country, either to be in closer proximity to domestic manufacturers or to supply international customers—or both. The leading tobacco equipment manufacturers and leaf merchants have been present for some time, and others continue joining their ranks. In June 2022, for example, Smoore Technology, a prominent atomization company serving the global vape market, inaugurated a factory in Malang to supplement its manufacturing base in China (see “Peace of Mind,” Tobacco Reporter, June 2022).

The prevalence of kretek cigarettes, with their complex blends, makes Indonesia an attractive destination, especially for flavor houses. Kretek cigarettes typically contain casings and top flavors with elements such as fruitiness, sweetness, sourness and spiciness. The products on the market are characterized by highly characterizing flavors and strong pack and stick smells along with sophisticated smoke streams. The virtually unlimited combinations of flavors on the market, in combination with Indonesian smokers’ receptiveness to new experiences, makes Indonesia a flavorist’s paradise.

Alert to opportunity, Hertz Flavors of Germany last year inaugurated a $5 million state-of-the-art factory in Mojokerto, East Java, located at only 40 km, or one hour’s drive, from the port of Surabaya and in close proximity to the majority of cigarette manufacturers in Indonesia.

According to Ferdinand Baturusa, president director of Hertz Flavors Makmur Indonesia, the decision to build a local facility was a no-brainer. “The popularity of kretek, both domestically and internationally, has made Indonesia the second biggest market for tobacco flavors in the world—clearly a location we want to be present in,” he says.

With an annual production capacity of 1 million kg, depending on product mix and complexity, the Indonesian plant has significantly boosted Hertz Flavors’ global footprint. The company also manufactures flavors in Hamburg and operates a sales and innovation center in Dubai under the name Flavoriq, which focuses on the vaping market. In addition, it maintains a significant international presence through agents and partnerships.

Baturusa says the Surabaya plant underscores Hertz Flavors’ dedication to upholding top-notch standards in its operations. The facility has been certified ISO 9001 and HACCP in recognition of its systematic approach to quality management and the safety of its products, respectively. ”This accomplishment sets us up to enter the marketplace and provide the best products and services to our Indonesian customers,” says Baturusa.

Aside from following best industry practices, Hertz Flavors adheres to strict internal quality and compliance standards. “We use our knowledge from almost 70 years of our experience to develop products according to international regulations and with a focus on performance and risk reduction,” says Baturusa, adding that Hertz Flavors will also accommodate individual customers’ preferences.

Constructing a factory in a new country 11,000 km away from its home base naturally presented a considerable challenge for a medium-sized firm like Hertz Flavors, but with the help of its skilled and knowledgeable local team, the company successfully navigated the obstacles. Local authorities, too, accommodated the project. Baturusa says he is encouraged by Indonesia’s commitment to reforming the investment climate to make it a safe and attractive destination for businesses looking to set up shop in the country.

In addition to strengthening Hertz Flavors’ global capacity, the investment has boosted the local economy. The Indonesian plant currently has a workforce of more than 30 people with a variety of geographic and educational backgrounds. According to Baturusa, Indonesia’s young and capable workforce, combined with the country’s improving global profile, represents considerable competitive strengths internationally. “As [a] German-speaking Indonesian with a university degree from Berlin, I personally think that this German-Indonesian culture fusion is a great mix,” he says.

The skills and diversity of its Indonesian team will serve Hertz Flavors well as it caters to Indonesian smokers’ discerning palettes. According to Baturusa, current local tobacco trends include fruity and minty flavors (delivered with or without capsules) along with apple, grapes and mango. Tea-flavored products, too, have a wide following in Indonesia as do cigarettes that taste like traditional local sweets, such as ludou and taro (sweet potato).

In cooperation with its vape specialists at Flavoriq, Hertz Flavors is also developing innovative flavors for Indonesia’s vape segment, which has grown considerably in recent years. “Together, we also create customized flavors for this unique market and exclusive solutions for our local customers,” says Baturusa. “Depending on demand, our Indonesian factory manufactures these products also locally.”

Buoyed by the success of its first year in Indonesia, Hertz Flavors is keen to keep growing. For the time being, it intends to focus on domestic sales. “Our main priority is currently the Indonesian market,” says Baturusa. “Indonesia is one of the largest and most vital and innovative tobacco markets worldwide, and we strive to fulfill the necessities and desires of Indonesian customers and cigarette producers. Our commitment is to produce excellent flavors for tobacco and adjacent products and items that comply with the Indonesian market’s exceptional tastes and requirements, resulting in our expanding achievements in this important market.”

The greatest challenge, according to Baturusa, will be to maintain and improve product quality while ensuring a supply of high-quality raw materials. “Maintaining consumer trust and meeting industry standards depends heavily on product quality,” he says. “In addition, managing raw material resources for tobacco and flavoring ingredients is a significant challenge. In particular, raw material availability and pricing are critical. Manufacturers must uphold stringent quality controls throughout their supply chains while devising innovative solutions to overcome these hurdles.”

Dedication will be the key. Continued success, says Baturusa, will require leading innovation, staying ahead of trends and attracting the best people. It also involves looking beyond immediate corporate considerations, as Hertz is adamant that its growth will not come at the expense of the environment. “We feel responsible for the sparing use of resources on our planet and for preserving an intact environment—for present and future generations,” says Baturusa. “Our company takes a long-term view in all its activities to ensure the sustainability of our business. We believe in long-lasting partnerships, superior quality and first-class customer service.”

Taco Tuinstra is Tobacco Reporter’s editorial director. Based in Raleigh, North Carolina, USA, he coordinates the work of staff writers and contributors. On his watch, Tobacco Reporter has won several awards for editorial excellence. Since joining the magazine in 1997, Taco has visited more than 75 countries to meet industry representatives in their markets and to report tobacco news firsthand.

November 21, 2023

Brazil Busts Fake Cigarette Network

Brazil’s Federal Police cracked down on a criminal network trafficking fake Paraguayan cigarette brands in Minas Gerais state, according to the Organized Crime and Corruption Reporting Project (OCCRP). Law enforcement agents reportedly issued multiple arrest warrants and froze more than $4 million in assets.

The suspects face charges of smuggling, counterfeiting, human trafficking, slave labor, forgery, misuse of machinery, crime against consumer relations, crime against trademark registrations and money laundering.

Led by a businessman from Sao Paulo, the organization forced Paraguayan nationals to make the cigarettes in hidden factories. The group reportedly picked up workers in Paraguay, blindfolded them, and drove them east across the border into Brazil, where they were held under surveillance inside the factories for several months. Their telephones were confiscated and they had no contact with the outside world.

The workers produced counterfeit versions of Paraguayan brands, such as the Tabesa’s TE, Eight and Palermo. Once finished, the cigarettes were transported in trucks, hidden behind shoes.

Paraguay is a major contraband hub in South America. More than 97 percent of cigarettes produced in Paraguay end up in countries such as Brazil. The business is also entangled with money laundering, political corruption and criminal gang activities.

In March of this year, the OCCRP reported on the rescue of 19 Paraguayans trapped in an illegal cigarette factory in Rio de Janeiro. Brazil rescued 918 people working as slaves in the first three months of this year.

November 20, 2023

Finland: Smoke-Free Tax Plans Draw Fire

The Finnish government’s recent proposal to increase taxes on nicotine pouches and vape liquids has drawn criticism from the World Vapers’ Alliance (WVA). The current plan would increase the price of one nicotine pouch box by approximately €2.50 ($2.74).

This move, which aims to bring smokeless nicotine products under tobacco taxation, is a significant step backwards in harm reduction efforts, according to the consumer group.

“Finland’s plan to increase taxes on less harmful nicotine alternatives is deeply concerning. Not only does this reduce the price differential between deadly cigarettes and safer alternatives, but it also directly undermines public health goals. By making products like nicotine pouches and vape liquids more expensive, we risk discouraging smokers from switching to these less harmful alternatives,” said WVA Director Michael Landl in a statement.

The proposal, which seeks to amend the law on tobacco taxation, will encompass smoke-free nicotine products, including nicotine pouches and vape liquids. The WVA warns that such tax increases will disproportionately impact low-income groups, who statistically exhibit higher smoking rates.

“Imposing higher taxes on harm reduction products hits the most vulnerable groups the hardest. These are the same groups with the highest smoking rates. Instead of providing them with affordable alternatives to quit smoking, the government is pushing them back to the more harmful habit. This move by the Finnish government is a step in the wrong direction that ignores public health benefits and deepens social inequalities,” said Landl.

The WVA suggested that the Finnish lawmakers don’t need to look far for successful examples of harm reduction. Sweden is on track to become the first smoke-free country because of its progressive harm reduction policies. Earlier this year, Sweden announced a program of lowering tax on snus and nicotine pouches while significantly raising cigarette tax.

November 20, 2023

Thailand Asked to Embrace Alternatives

The director of ENDS Cigarette Smoke Thailand (ECST) has asked the Thai government to pass legislation that encourages smokers to switch to less-harmful methods of nicotine consumption, reports The Inquirer.

Asa Saligupta believes that Thailand’s current restrictions on smoking alternatives are pushing these products underground, resulting in an unregulated market that deprives the government of revenues and forces consumers to keep smoking.

Thailand banned on vapes and other electronic nicotine delivery systems in 2014, resulting in the arrest of local vapers and foreign tourists. Saligupta says the measure has discouraged smokers from switching to potentially less harmful innovative products.

According to Saligupta, Thailand should follow the lead of the Philippines, which passed a law that recognizes tobacco harm reduction as a legitimate tool in the campaign against smoking.

Republic Act 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, became law in 2022. The Vape Law regulates the importation, sale, packaging, distribution, use and communication of vaporized nicotine and non-nicotine products and novel tobacco products such as electronic cigarettes and heated tobacco products.

Thailand’s vaping regulations are among the strictest in Asia.

November 20, 2023

Bubbles of Bliss

A German startup deploys foam to deliver nicotine.

By Stefanie Rossel

Until recently, users of noncombusted products had two ways of consuming nicotine: through an aerosol generated by e-cigarettes or heated-tobacco products (HTPs) or through direct absorption by the mucous membrane of the mouth, as is the case when using modern oral nicotine products. The Splash platform works with an entirely different medium: foam. According to its eponymous manufacturer, a startup company based in northern Germany, Splash is the fastest delivery system on the market, delivering the desired nicotine “hit” within seconds.

The stimulants carrier is not an aerosol but a glycerin-free fine foam, similar to the froth on a cappuccino, which is consumed through a mouthpiece. The Splash device comprises a bottle filled with nicotine-containing liquid. A separate department at the top of the unit holds a mix of natural ingredients, including phospholipids and a vegetable emulsifier, that turn the liquid into a stable foam when released.

“We wanted the particles to stay in the mouth longer than aerosols and be absorbed sublingually,” explains Klaus Hagen, chairman of Splash. “Foam moves slowly and remains in the mouth long enough for ingredients to be absorbed quickly. This way, it takes only a few seconds until the active ingredient arrives in the brain. In addition, the foam allows the aromas to spread in the mouth and create an intense taste experience.”

To manage the air pressure within the bottle, the device is equipped with coated pills and a filter. “With Splash, we have found a way to substantially shortcut the road that stimulants usually have to take through the body via the stomach and the bloodstream,” says Hagen.

Smoke-Free and Vape-Free

Hagen, who boasts a long career in the tobacco industry, most recently as head of next-generation products at a leading multinational, founded Splash in 2021. Development of the Splash platform, however, started as early as 2019. Hagen had just successfully exited his first startup, which had developed a battery-powered shisha.

“A few weeks after the sale of our company, my team and I were contemplating what to do next,” says Hagen. “We knew that whatever we would develop now would only become relevant to consumers, the industry and regulators in three [years] to four years. When we started with Splash, vaping was already very popular, and it was all about generating big clouds of steam. Oral nicotine products at that time were either tiny niche or locally limited, such as snus in Sweden. The same was true for batteries and their potential hazard for the environment. Nevertheless—or because of that—we decided to create a natural alternative to aerosols and batteries.”

The objective was to develop a smoke-free and vape-free product that would integrate enjoyment and ritual. “We aimed to be way ahead of a consumer trend we were anticipating,” says Hagen. “At that time, it was a mere gut decision, but it has turned out to be the right one.”

The idea of using foam was inspired by the detergent capsules used in dishwashers. “We were immediately aware of the enormous potential ‘effervescent tablets’ would have as an energy source for use in inhalers,” says Hagen. “So we decided to develop a method to turn a liquid into a solid foam.”

Facilitating Switching

The result is a hybrid—a modern oral nicotine product in the form of a handheld device that mimics the hand-to-mouth motion associated with cigarettes, HTPs or vapes. Hagen calls it a vape 2.0 or “no heat, no burn.” The product can be offered with various nicotine strengths. Once activated, the device generates 25 puffs to 30 puffs.

The company tested user acceptance at different points in the development process. “In the U.K., we had the product tested by many consumers in London, Birmingham and Manchester this May,” says Hagen. “They all immediately understood what Splash was about, which is on the one hand to maintain an essential ritual known from smoking or vaping and on the other hand to be discreet—i.e., not to emit smoke or vapor. We live in a fast-paced time where social acceptance of smoke[-generating] and vapor-generating products is getting ever more limited. Besides, for smokers or users of HTPs or vape products, the switch to a nicotine pouch is too big a step—they need certain key elements, including habits and satisfaction.”

In researching the market, the company paid particular attention to two aspects: How do consumers experience the absorption of active ingredients, and how do they like foam as an administration tool? “We were surprised how well both were received,” says Hagen. “Consumers described the uptake of active ingredients as ‘very fast and effective.’ The foam, albeit a novelty, was experienced as extremely pleasant. We had numerous conversations with smokers who confirmed that nicotine absorption through Splash is not only exceptionally fast but also lasts for a long time so that the total consumption of nicotine—spread across a day—is lower than with the usual nicotine-containing products.”

Splash is not only fast, but it also lasts a long time so that the total consumption of nicotine is lower.

Klaus Hagen, chairman, Splash

Low Risk Profile

Splash’s comparatively low risk profile should help the product gain acceptance in a heavily regulated industry. The foaming agents contain emulsifiers that have been approved for use in the food industry. As a modern oral product, the device is not subject to the EU Tobacco Products Directive (TPD) yet; for the time being, member states can decide for themselves whether to permit the product category. Hagen is confident that the TPD will embrace new products such as Splash in the future.

Being made of nicotine, the liquid in Splash does not contain harmful substances common in tobacco, such as nitrosamines. The product is also free from heavy metals. Since Splash works without heating or pyrolysis, it doesn’t create any byproducts, such as formaldehydes. What’s more, the absence of a battery means there is no risk of fire or malfunction. Other risks, such as leakage or accidental swallowing of the whole product, are ruled out as well, according to Hagen.

In addition to equipping its device with a child-safety lock, Splash adheres to strict voluntary standards to prevent youth appeal. “Of course we stick to the legal caps for nicotine, but we also refrain from using sugar-loade[d] flavors or giving our flavors fancy names that are targeting children or youths,” says Hagen. “We don’t do lifestyle marketing, and we focus on age verification for online trade and retail.”

Splash is a disposable product, planned to retail at $2 per unit and appealing to a mass market with its simplicity of use. However, sustainability has played an important part in its development. “We were motivated to make things better than existing products,” says Hagen. “In contrast to vape products, Splash contains no electronic components. Almost all its parts are made of recyclable plastic, hence the product can be returned into the recycling loop. With this, we are anticipating what is already imminent in some regions: the legally enacted ban of batteries in disposable products.”

Platform with Potential

The company believes its platform has potential beyond nicotine delivery. “Splash could be used for the administration of substances that provide users with new energy or a feeling of well-being and deceleration,” Hagen says. “It is also apt for administration of medicines. Our technology has a big advantage for beverage and pharma: the speed of absorption. While it takes about 10 [minutes] to 20 minutes for an energy drink or a painkiller to release its effect, Splash will take only a few seconds. We have already carried out respective tests in our labs, and there’s interest from the industries. Here, our technology could be licensed.”

The company, which comprises a network of 14 people spread across several cities and continents, aims to become an expert in the administration of substances rather than an expert in the distribution of nicotine products, according to Hagen. For the time being, though, Splash is focusing on nicotine, which currently engages the majority of its staff. A second division, however, is working on other mood enhancers.

The Splash device is developed in Germany and manufactured in China. For regulatory reasons and to distinguish it from use in other industries, the company in November rebranded the nicotine part of its platform under the name Voam.

The company started to commercialize its patented technology as a nicotine product in the late summer of 2023, testing the product in several stores in close contact with consumers to be able to potentially make last adjustments. “We intend to keep this panel that exceeds traditional market research to test innovations, such as new flavors, in the future,” says Hagen.

According to him, the industry has already shown significant interest in the product. The company has been in talks with representatives of the traditional tobacco business as well as the nicotine industries and leading distributors in several countries. “We are already negotiating the first larger volumes,” says Hagen. “In the selection of potential partners, it is especially important to us that the player shares our mission: to enable a smoke[-free] and vapor-free world with our product without forgoing enjoyment and rituals.”

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.

November 20, 2023

Malawi Now a Full Party to FCTC

Malawi is now a full party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC). The government ratified the FCTC in August 2023, and the treaty took effect Nov. 16.

“WHO congratulates Malawi for this historic step and reaffirms its strong commitment to collaborating closely with the government to achieve the shared goals of the WHO FCTC,” said Neema Rusibamayila Kimambo, WHO representative in Malawi, in a statement. “Together, we will continue our collective efforts to protect public health and work towards a tobacco-free future.”

The WHO said it is ready to provide extensive support to ensure Malawi’s successful implementation of the convention and welcomes the nomination of a government liaison to work closely with the FCTC Secretariat.

The FCTC, which entered into force in February 2005, provides an internationally coordinated response to combating the health impact of tobacco, setting out specific steps for governments addressing tobacco use and production.

The treaty also promotes crop replacement and diversification.

Malawi is one of the world’s tobacco-dependent economies. Depending on the season, tobacco accounts for between 40 and 70 percent of the country’s export earnings.

In a special report earlier this year, Tobacco Reporter examined industry efforts to help Malawi strengthen its economy by developing supplemental value chains, such as groundnuts, bananas and mushrooms.

November 20, 2023

Egypt Releases Details of Eastern Sale

Egypt’s Ministry of Public Enterprises has released details of the sale of a 30 percent stake in Eastern Co. to Global Investment Holdings Co (GIHC), reports Ahram Online.

The Emirati company will pay EGP19.336 billion ($625 million) for 6.689 billion shares of Eastern Co. The payment will be made in U.S. dollars in two transactions. The first payment will be made upon conclusion of the deal in the amount of EGP16.403 billion, and the second payment will be made in the amount of EGP2.932 billion on an agreed upon schedule.

GIHC has also pledged to provide $150 million to procure tobacco required for Eastern Co.’s manufacturing processes.

This deal is part of Egypt’s broader initial public offering program aimed at selling stakes in 35 state-owned companies to strategic investors by the end of June 2024.

In February, the government announced a list of 32 companies for privatization, subsequently adding Eastern Company, Telecom Egypt, and Ezz El-Dekheila. The privatization program is a component of Egypt’s commitment under its $3 billion loan program with the International Monetary Fund. The government hopes to attract $5 billion through privatization between October 2023 and June 2024.

November 20, 2023

Pakistan Urged to Swap Tobacco For Food

Pakistan should replace tobacco with food crops, according to experts in nutrition, agriculture and the environment, reports UrduPoint.

Speaking with the Associated Press of Pakistan, the specialists said such a transformation is necessary not only to improve public health but also to overcome the food insecurity faced by more than one third of the population.

In 2018, 36.9 percent of Pakistanis struggled with food insecurity, data from the National Nutrition Survey reveals. Massive floods at home and war in Ukraine have plunged an additional 2.5 million people into hunger according to the Pakistan Fruits and Vegetable Importers and Exporters Association (PFVA).

The group says Pakistan now relies on imports for food items such as wheat, pulses, chickpeas, garlic and ginger. However, a prevailing shortage of hard currency makes it difficult for importers to obtain letters of credit.

PFVA Chief Waheed Ahmad urged policymakers to capitalize on this year’s World No Tobacco Day theme, “Grow Food, Not Tobacco.”

Tobacco is grown in all four provinces and is a significant part of Khyber Pakhtunkhwa’s economy, where farmers cultivate approximately 30,000 ha of the golden leaf.

Taimoor Khan, general secretary of the Khyber Pakhtunkhwa Association for Excellence in Agriculture, suggested that if half of this area were converted into growing a new variety of garlic, NARC G1, the farmers would make a remarkable profit.

Khan also called into question the economic contribution of tobacco farming, which is believed to generate revenues of PKR120 billion annually ($416.24 million). The cost of dealing with the health impact of tobacco consumption exceeds the tobacco tax take by a factor of three, he said.

“By transforming tobacco farming to food production, we can create ripple effects that promotes food security, improves public health, contributes to the overall well-being of our communities and benefit the environment,” said Aftab Alam Khan, CEO of Resilient Future International.

The speakers also cited research showing that tobacco cultivation requires heavy use of pesticides and fertilizers, which causes soil degradation, thus lowering the used land’s capacity to grow other crops.

According to the National Health Services in 2018, almost 23.9 million adults currently use tobacco in any form in Pakistan. Around 163,600 people die each year in the country due to tobacco and almost 31,000 of these deaths are due to exposure to second-hand smoke.

Critics of “Grow Food, not Tobacco” campaign have suggested that the theme creates a false dichotomy, as tobacco and food production are not mutually exclusive.

November 19, 2023

Malaysia Minister Vows to Table Smoking Bill

Malaysia’s health minister has vowed to table the Control of Smoking Products for Public Health Bill 2023 before the end of the current parliament’s session on Nov. 30, reports The Star.

“God-willing, I assure you that we will table this Bill before the end of the current Parliament session,” Zaliha Mustafa was quoted as saying.

His comments came after the Attorney General Chambers reiterated an earlier statement that the Generational Endgame Ban (GEG) clause of the proposed legislation can be challenged in court.

The GEG seeks to ban tobacco and vape products for anyone born on or after Jan. 1, 2007.

The Attorneys General Chambers insist this provision contravenes Article 8 of Malaysia’s constitution, as it creates unequal treatment before the law between a person born before that date and individuals born after the date.

It was unclear from contradictory reports whether the bill heading to parliament still includes the GEG. An earlier report by CodeBlue suggested the clause had been removed in response to the constitutional concerns raised by the Attorney General Chambers.

The legislation also includes provisions on registration of tobacco products, advertisement, packaging and smoke-free places, among other items.

November 19, 2023

Tobacco Key Contributor in Thailand: Report

The tobacco industry remains an important contributor to Thailand’s economy, reports The Bangkok Post, citing a report by Oxford Business Group.

In 2022, the tobacco industry contributed nearly THB60 billion ($1.71 billion) in excise taxes—12 percent of Thailand’s total tax take that year. The previous year, Thailand exported THB7.4 billion worth of tobacco and related products.

Annually, Thailand directs THB4.1 of its tobacco-related tax collections to the Thai Health Promotion Foundation.

“In addition to being a significant contributor to Thailand’s economy, our research found that Thailand’s tobacco sector is an important employer and is crucial to rural communities and livelihoods, especially in the north and northeast of Thailand,” Marc-Andre de Blois, director of PR for Oxford Business Group was quotes as saying.

The industry supports nearly 50,000 households directly and indirectly, according to De Blois, who says that the crop is resilient to floods, droughts and poor soil conditions.

The Oxford Business Group report also highlights the challenges presented by the illicit cigarette trade in Thailand. According to the Thai Tobacco Trade Association, illicit trade through online channels grew 97 percent between July 2022 and September 2022.

Data from the Excise Department shows that illicit cigarettes accounted for 30 percent of the Thailand’s tobacco market in mid-2021.

November 17, 2023