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  • Pakistan Trace System Rolled Out by Year’s End

    Pakistan Trace System Rolled Out by Year’s End

    Image: Tobacco Reporter archive

    Pakistan’s track-and-trace system is expected to be fully installed throughout the tobacco industry by the end of December 2023.

    Two multinationals and one local tobacco company have already installed the Federal Board of Revenue’s (FBR) new automated system while six local companies have installed manual track-and-trace systems.

    Some local companies have raised concerns about the cost of the systems, prompting The Business Recorder to urge the government to offer discounts or installment payments on the equipment.

    According to the FBR, revenue from the tobacco sector has increased following the implementation of the system, with a major increase in the rates of the federal excise duty on cigarettes.

  • Court Stays Vuse Alto MDO

    Court Stays Vuse Alto MDO

    Photo: fotofabrika

    The U.S. Court of Appeals for the Fifth Circuit granted R.J. Reynolds Vapor Co. (RJRV) an emergency administrative stay of the Food and Drug Administration’s marketing denial order for menthol flavored Vuse Alto e-cigarette products.

    “We are pleased that the Fifth Circuit Court of Appeals has granted our emergency motion for temporary administrative stay of FDA’s marketing denial order for menthol flavored Vuse Alto e-cigarette products. This decision allows Reynolds to continue offering Vuse Alto Menthol e-cigarette products to adult nicotine consumers age 21+ without interruption,” Reynolds wrote in an e-mailed statement.

    “We believe appropriately regulated flavored vaping products—including menthol—are critical in supporting adult smokers who migrate from combustible cigarettes. We remain confident in the quality of Reynolds’ applications and believe there is ample evidence for FDA to determine that the marketing of these products is appropriate for the protection of public health.”

    RJRV will now apply for a formal stay and challenge the denial of its premarket tobacco product application for Vuse Alto Menthol Pods.

  • PMI: COP10 Missed Opportunity

    PMI: COP10 Missed Opportunity

    Image: PMI

    Philip Morris International is concerned that participants in the upcoming Conference of the Parties to the World Health Organization Framework Convention on Tobacco Control (FCTC) will promote prohibitionist policies for noncombustible tobacco products, according to an article in The Guardian.

    “The agenda and meeting documents have been made public for the main part,” PMI Senior Vice President of External Affairs Gregoire Verdeaux wrote in an email. “Unfortunately, they reconfirmed every concern we had that this conference may remain as the biggest missed opportunity ever in tobacco control’s history … WHO’s agenda is nothing short of a systematic, methodical, prohibitionist attack on smoke-free products.”

    Without “reasonable, constructive outcomes,” Verdeaux wrote, the “WHO will have irreversibly compromised the historic opportunity for public health presented by the recognition that smoke-free products, appropriately regulated, can accelerate the decline of smoking rates faster than tobacco control combined.”

    While tobacco companies are not invited to the Conference of the Parties to the FCTC, Verdeaux said he will be in Panama “to publicly denounce the absurdity of being excluded from it while PMI today [is] undoubtedly the most helpful private partner WHO could have in the fight against smoking.”

    Last year, PMI made $10.19 billion in revenue from products like heated-tobacco and electronic cigarettes.

  • BAT Appoints Chief People Officer

    BAT Appoints Chief People Officer

    Image: tomertu

    BAT has appointed Cora Koppe-Stahrenberg to the new role of chief people officer. She will join the BAT management board on Nov. 1, 2023.

    Bringing critical experiences from other sectors and industries, Koppe-Stahrenberg was most recently global head of human resources of Fresenius Medical Care, a publicly listed global healthcare company with over 125,000 employees. While at Fresenius Medical Care, Koppe-Stahrenberg established a new global HR function and implemented a global people strategy, which focused on the creation of a collaborative and empowering culture delivered through a number of change initiatives. Previously, Koppe-Stahrenberg held various international senior HR positions at Marsh and McLennan Companies, Emirates Investment Authority and General Electric.

    “I am delighted to welcome Cora to the management board,” said BAT CEO Tadeu Marroco in a statement. “This is a significant management team enhancing appointment for BAT. Culture and collaboration are at the heart of my leadership agenda; Cora shares these values and will play a key role in the group’s transformation to build ‘A Better Tomorrow.’ I have no doubt that Cora will bring a fresh perspective having worked internationally in multiple sectors outside our industry and will bring new insights and capability to our management team.

    “I look forward to working with Cora to deliver a winning culture and a dynamic, modern BAT.”

    The chief people officer will report to the chief executive.

  • KT&G Breaks Ground for Kazakhstan Factory

    KT&G Breaks Ground for Kazakhstan Factory

    Photo: KT&G

    KT&G Corp has broken ground in Kazakhstan for its fourth overseas plant as part of its expansion strategy.

    The Korean tobacco firm aims to complete construction by 2025 and export its products to the Eurasian region. The news follows KT&G’s announcement last month that it would build a second factory in Indonesia, with an aim of starting operations in 2026 and exporting products to neighboring countries.

    “The new Kazakhstan factory will serve as a global core production hub covering the Eurasian market and will be a forefront base for realizing the group’s future vision of global top-tier,” said KT&G CEO Baek Bok-in in a statement, referring to the company’s global ambitions.

    The company aims to earn half of its sales from overseas businesses in 2027. It wants to achieve sales of KRW10 trillion ($7.4 billion) in 2027, compared with KRW5.9 trillion in 2022.

    While focusing on the conventional cigarette business, KT&G said it will reinforce its heat-not-burn (HNB) and health functional food product businesses.

    KT&G has exported its HNB products to more than 30 countries since 2020 through a distribution deal with Philip Morris International.

    The company’s cigarette division earns 78 percent of its sales from the conventional cigarette business and 22 percent from the HNB business.

    KT&G has six tobacco  factories—three in South Korea and one each in Russia, Turkey and Indonesia.

  • Clifford Douglas to lead Smoke-Free Foundation

    Clifford Douglas to lead Smoke-Free Foundation

    Photo: FSFW

    The Foundation for a Smoke-Free World has named Clifford E. Douglas as president and CEO. Douglas most recently served as director of the University of Michigan Tobacco Research Network and as adjunct professor in the department of health management and policy at the University of Michigan School of Public Health. Prior to that he was the American Cancer Society vice president for tobacco control. Early in his career Douglas worked to eliminate smoking on airline flights and was an attorney and advisor in landmark lawsuits against tobacco manufacturers.

    Douglas has also managed a $6 million campaign to eliminate smoking on college campuses, and worked to help Americans understand the relationship between smoking and Covid-19. Douglas has served as the assistant director of the Coalition on Smoking and Health; he was also the associate director of the American Lung Association national public affairs office and has been the tobacco control advisor to the U.S. Assistant Secretary for Health and the U.S. Surgeon General.

    “For decades Cliff Douglas has been a strong and influential voice in the work to eliminate smoking in America and globally,” said Pam Parizek, chair of the Foundation board of directors, in a statement. “He understands both the science and societal elements of tobacco issues. His credentials are exceptional, and we are pleased he will lead our foundation effort to fund meaningful research and engage in evidence-based education efforts that help those at greatest risk stop smoking.”

    The Foundation is a nonprofit, independent grantmaking organization, dedicated to ending the illness and death caused by smoking.

    Douglas believes the Foundation is uniquely positioned to reduce smoking globally, “Our mission is to help end smoking in this generation,” he said. “I have committed myself to this mission for 35 years and look forward to leading this organization in innovative and impactful efforts to accelerate reductions in smoking prevalence and improve public understanding regarding the nature and health impact of nicotine, and as the U.S. Food and Drug Administration has highlighted, the continuum of risk among different tobacco and nicotine products. We will continue to be a strong and independent voice in helping people around the world find healthier lifestyles.”

    “Our mission is to help end smoking in this generation. I have committed myself to this mission for 35 years and look forward to leading this organization in innovative and impactful efforts to accelerate reductions in smoking prevalence.

    “The Foundation is about to enter a new era under the leadership of Cliff Douglas,” said Parizek. “We certainly are appreciative of those who have previously supported our work, and going forward the Foundation remains fully committed to our smoking cessation and tobacco harm reduction efforts around the world.”

    Philip Morris International recently made a final grant to the Foundation and the pledge agreement between Philip Morris and the Foundation has been concluded. “Moving forward the Foundation will seek to collaborate with associations and institutions to accelerate our investments in life saving research projects based on the most up to date science,” said Parizek.

  • Marketing Denials for Flavored Vuse Alto

    Marketing Denials for Flavored Vuse Alto

    Image: Rangizz

    The U.S. Food and Drug Administration on Oct. 12 issued marketing denial orders (MDOs) to R.J. Reynolds Vapor Co. for six flavored e-cigarette products under its Vuse Alto brand. This includes three menthol-flavored and three mixed berry-flavored products, with each flavor being offered in three nicotine strengths.

    After reviewing the company’s PMTAs, the FDA determined that the applications lacked sufficient evidence to demonstrate that permitting marketing of the products would be appropriate for the protection of the public health, which is the standard legally required by the 2009 Family Smoking Prevention and Tobacco Control Act.

    Specifically, evidence submitted by the applicant did not demonstrate that the menthol- and mixed berry-flavored products provided an added benefit for adults who smoke cigarettes—in terms of complete switching or significant smoking reduction—relative to that of tobacco-flavored products that is sufficient to outweigh the known risks to youth, according to the agency.

    “We review each application on its own merits, and it’s the responsibility of the applicant to provide sufficient science to support the product they’re seeking to market,” said Matthew Farrelly, director of the FDA’s Center for Tobacco Product’s Office of Science. “If an application contained sufficient scientific evidence to meet the necessary public health standard, including a non-tobacco-flavored product, we’d authorize the product. But such evidence was lacking in this case.” 

    Vuse is the most commonly sold e-cigarette brand in the U.S., with Vuse Alto being its most popular sub-brand. Further, findings from the National Youth Tobacco Survey (NYTS) show that Vuse e-cigarettes, which are cartridge-based products, have been the second most commonly reported e-cigarette brand used by youth in the U.S. since 2021.  

    These actions are among many the FDA has taken to ensure any tobacco products that are marketed in the U.S. undergo science-based review and receive marketing authorizations by the agency. The FDA has received applications for more than 26 million deemed products and has made determinations on 99 percent of these applications.

    To date, the FDA has authorized 23 tobacco-flavored e-cigarette products and devices, which are the only e-cigarettes that currently may be lawfully sold or distributed in the U.S. These authorizations include other products under the Vuse brand, including tobacco-flavored Vuse Vibe and Vuse Ciro devices and accompanying cartridges. Applications for six tobacco-flavored Vuse Alto products remain under FDA review.

  • Habanos Operational Marketing Director

    Habanos Operational Marketing Director

    Beatriz Garrido García

    Habanos, S.A., the distribution arm of Cuban cigars, announced today that Beatriz Garrido García has been appointed as the new operational marketing director.

    Garrido has a degree in Scientific and Technical Information. She has been linked to the world of Habanos since 1997, starting as a commercial information specialist for the Operational Marketing Division, according to a press release.

    In 2001, she served as a market intelligence specialist belonging to the Strategic Marketing management.

    Later on, her career was consolidated and in 2009 she was appointed to the position of market supervisor at Tabacalera S.L.U., until 2013.

    She then began to work in commercial management as an international saleswoman. In 2017, she served as corporate director for Phoenicia Trading, the exclusive distributor of Habanos for Africa and Middle East.

    Later, she held the position of commercial director of Cigarte Ibérica based in Spain. Before being appointed as operational marketing director, Garrido served as international market supervisor.

  • Health Canada Licenses Nicotine Pouch

    Health Canada Licenses Nicotine Pouch

    Photo: Andrii

    Health Canada has granted Nicoventures Trading permission to sell Zonnic, a nicotine pouch that can help adult smokers quit smoking by delivering nicotine to the body. The product will be distributed in Canada exclusively by BAT subsidiary Imperial Tobacco Canada (ITCAN).

    “This is a first for Canada. No other nicotine pouch has received Health Canada’s authorization. Zonnic will give smokers a new option to help them quit smoking,” said ITCAN President and CEO Frank Silva, President in a statement.

    “We all agree, smoking is the cause of serious diseases, and we are committed to reducing the health impact of our business. The addition of Zonnic to our product portfolio is the next step in this journey.’’

    Zonnic, which temporarily relieves cravings and nicotine withdrawal symptoms, is licensed as a Natural Health Product and has been authorized for sale by Health Canada for use as a form of Nicotine Replacement Therapy (NRT). Zonnic contains no tobacco.

    As part of its license application, Nicoventures provided all information required by Health Canada, including a pharmacokinetics study that assessed the bioavailability of nicotine in Zonnic in comparison to other commercially available NRTs. The study showed that Zonnic nicotine pouches effectively deliver nicotine, and are comparable to other commercial brands.

    “Canada has a golden opportunity to achieve its reducing smoking rates below 5 percent by 2035. We just have to look at Sweden to see how it can be done. Sweden is about to become the first smoke free country,” said Silva. “This is being achieved by embracing new, less harmful nicotine products and creating a policy environment which encourages smokers to move away from smoking. With Canadian smoking rates at an all-time low, we believe that Zonnic can reduce rates even further, and help Canada get the same results as Sweden.”

    ‘’I am immensely proud to add Zonnic to our product portfolio that hit the shelves this week in convenience stores and later this year in pharmacies. Offering a range of less harmful products to smoking will benefit our adult consumers and society as a whole,’’ concluded Silva.

  • Illicit Sales Shrivel in Papua New Guinea

    Illicit Sales Shrivel in Papua New Guinea

    Photo: Anton Balazh

    The prevalence of illicit cigarettes in Papua New Guinea has declined remarkably, report the Papua New Guinea Post-Courier and The National, citing a report by the Manufacturers Council of Papua New Guinea (MCPNG).

    According to MCPNG CEO Chey Scovell, the share of tax-avoiding products has declined to 4 percent from 40 percent, allowing tax authorities to collect more revenue. “This is a massive drop, which has resulted in the PNG government taking back millions of kina in revenue from the illicit tobacco importers and sellers, when you consider that government was forgoing almost half a billion kina each year from untaxed illicit tobacco,” Scovell said. 

    He attributed this success to the implementation in 2019 of a new system to encourage manufacturers to produce and sell a smaller portion of their products at a reduced rate.

    “By allowing a 50 percent discount on taxed supplies, a real problem coming from high taxes has been addressed,” said Scovell. Previous high tax rates led to more illicit consumption, he noted. “Consumers in PNG faced prices as PGK1.20 ($0.32) for legal products compared to the PGK0.50 for illicit alternatives.”

    “Although there is still an ongoing battle to lower prices further, market observations reveal approximately 85 percent of consumers are shifting toward legal purchases,” Scovell said.

    “I appeal to the government to continue this so we do not go back to 2018 levels of illicit tobacco flooding our markets and causing the government and legitimate business to lose out,” he said.