Blog - Tobacco Reporter

Greenbutts Partners with H.I.E. Handelsgesellschaft

Greenbutts, a science-driven leader in biodegradable filter technology, has entered into a strategic agreement with H.I.E. Handelsgesellschaft mbH effective Sept. 15, 2023, according to a press release. H.I.E. Handelsgesellschaft mbH is appointed as Greenbutts’ exclusive distributor for Poland in the European Union.

Tadas Lisauskas, CEO of Greenbutts, said, “We are confident that our partnership with H.I.E. Handelsgesellschaft mbH will provide Greenbutts customers in Poland with an outstanding quality and exceptional customer service. We seek to achieve strong supply chains by providing them with Greenbutts biodegradable filter rods and filter substrate, offering an expanded range of innovative filter material and local stock for quicker deliveries.”

Marc Sohns, managing director of H.I.E., added that “As the industry is facing transition by single-use plastic legislation and strengthening environmental commitments in the European Union, we are very pleased to partner with Greenbutts to offer our customers a certified biodegradable filter solution. We will ramp up our supply chain of sustainable substrate in 2024 for our clients in Poland and be in a position to provide them supply and support for the Greenbutts material. The Greenbutts partnership will continue to expand the H.I.E. product offerings to supply the materials that our customers need to be successful.”

September 26, 2023

Kaival Brands Earns Initial Royalties from Philip Morris

Kaival Brands Innovations Group, parent to Bidi Vapor, received its first royalty payments from Philip Morris International for marketing Bidi Vapor products in multiple countries.

In a press release, Kaival Brands announced that PMI achieved a record level of monthly sales in July for its Bidi products that are marketed by PMI under the names VEEBA and VEEV NOW.

Eric Mosser, CEO and president of Kaival Brands, said he was pleased to see the positive trajectory of sales and royalties to the company.

“We are proud to work with Philip Morris and remain steadfast in our commitment to the responsible commercialization of better alternatives to cigarettes for adults who would otherwise continue smoking,” he said.

September 26, 2023

Philippines Ag Dept. Supports Intercropping

The Philippines’ Department of Agriculture (DA) and local government units in tobacco producing areas are urging intercropping on tobacco fields to give farmers extra income and to make up for lost markets caused by smoking concerns, according to the Philippine News Agency.

High-value crops, such as rice, corn, garlic, onions, tomatoes and bamboo, can be planted alongside tobacco to help expand farmer income, according to DA Undersecretary Deogracias Victor Savellano. Intercropping will also help contribute to the Philippines’ food security.

Despite changing views toward smoking and tobacco, Savellano stated that the Department of Agriculture along with the National Tobacco Administration (NTA) must sustain the domestic tobacco industry as it affects about 2.2 million Filipinos and their livelihoods.

The domestic tobacco market generates billions in excise taxes annually, much of which funds the universal healthcare program.

“The government cannot allow the tobacco industry to sunset despite changes in consumers’ attitude toward cigarettes. However, we are now focusing on the export market … to make up for any decline in revenues generated domestically,” Savellano explained.

The NTA is pressing for more strict government responses to smuggling and other illicit tobacco activity. According to Robert Ambros, NTA regulatory head, government revenue loss due to illicit tobacco trade is estimated to be over PHP30 billion ($528.2 million) by the end of 2023.

“These past years, we had seen so much change in our health policies that affected the tobacco industry,” said President Ferdinand R. Marcos Jr. in an August speech delivered on his behalf by his nephew, Ilocos Norte Governor Matthew Manotoc. “As such, we must seek ways to protect the livelihood of thousands of our tobacco farmers.”

September 25, 2023

BAT to Invest Further in Bangladesh

BAT Bangladesh plans to invest BDT1.5 billion ($13.6 million) in its Savar factory site in order to scale up productivity to meet growing demand, according to The Business Post.

The board of directors approved the decision at its Sept. 24 board meeting.

The investment will be generated from internal sources and bank financing based on the company’s cash flow, according to the Dhaka Stock Exchange disclosure.

BAT Bangladesh is constructing a bonded warehouse for storage of wrapping material, leaf and finished goods, according to the disclosure. The company also invested in the electrical, fire detection and protection systems, air conditioning and ventilation systems, IT systems and security systems as well as construction of site ancillary facilities for employee well-being and factory services, the construction of a reinforced cement concrete road and creation of an underground drainage system.

Earlier this year, the company invested in the Savar factory to create contingency capacity and take advantage of upcoming export opportunities.

BAT Bangladesh is headquartered in Dhaka and has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.

September 25, 2023

Malawi Tobacco Control Audit Exposes Overages

A board of commissioners-ordered internal investigative audit of the Malawi Tobacco Commission exposed “extravagant over-expenditure and other stupendous financial irregularities” of the 2022–2023 fiscal year budget, according to the Nyasa Times.

Internal Audit Manager Rhoda Zaniku noted in her summary that the commission overspent by MWK22 million ($20,339.04) for the enforcement, liaison, monitoring and evaluation budget, indicating a 357 percent negative variance. The commission’s majority of votes were overutilized by more than the planned activity budgets.

Billboards worth MWK25 million were not budgeted for the 2022–2023 fiscal year. They represented 89 percent of the actual cost of enforcement, liaison, monitoring and evaluation charges. The billboard supplier, Optima Group, requested an 80 percent advanced payment—the commission granted 70 percent “contrary to the Secretary of Treasury instructions, which banned suppliers demanding payments before delivering goods or services.”

Travel and media budgets were also overspent as well as the budget for tobacco consultative meetings and the budget for motor vehicle running maintenance. The internet and VPN budget was overused as well. The audit also showed that the commission had no policy or guidelines on how to use afforestation levy money—only using MWK4.4 million of MWK8 million to procure tree seedlings, with the rest used on materials and expenditure for the National Tree Planting Day event.

“The audit exercise noted that there was no evaluation process when procuring some goods and service [and] that the IPDC [Internal Procurement and Disposal Committee] used the fixed team to evaluate process of procuring of goods and services,” the audit report said.

Of the commission’s budget votes, 40 of the 72 were spent in excess in violation of treasury regulations and the Public Finance Management Act.

Zaniku stated that the Tobacco Commission’s management “must abide to the approved budget for their planned activities or seek approval from the relevant authorities stipulated in the Public Finance Management Act and other statutory guidelines.”

September 25, 2023

UK Prime Minister Considering Cig Ban

U.K. Prime Minister Rishi Sunak is considering a ban on cigarettes that would effectively ban the next generation from purchasing cigarettes, according to the Guardian.

Sunak has reportedly been looking into measures similar to those put in place in New Zealand, involving steadily increasing the legal smoking age, resulting in those born on or after Jan. 1, 2009, never being able to buy tobacco products.

“At a time when people and businesses are crying out for stability, Rishi Sunak has poured fuel on the Tories’ economic bin fire in a desperate bid to keep Liz Truss and her fellow arsonists happy,” said Keir Starmer, Labour leader, referring to Sunak’s recent backtracking on his net-zero policy and confusion over his education policies.

“Britain has a once-in-a-generation chance to reverse 13 years of decline and get ahead—to bring down people’s bills, create quality jobs and free us from the grip of Putin and over-reliance on China. Rishi Sunak’s weakness now stands between the country and proper national renewal,” Starmer said.

“Smoking is a deadly habit—it kills tens of thousands of people each year and places a huge burden on the NHS and the economy,” said a government spokesperson about the New Zealand-style smoking ban policy. “We want to encourage more people to quit and meet our ambition to be smoke-free by 2030, which is why we have already taken steps to reduce smoking rates. This includes providing 1 million smokers in England with free vape kits via our world-first ‘swap to stop’ scheme, launching a voucher scheme to incentivize pregnant women to quit and consulting on mandatory cigarette pack inserts.”

“Prohibiting the sale of cigarettes to future generations of adults won’t stop people smoking,” said Simon Clark, director of the smokers’ group Forest. “It will simply drive the sale of cigarettes underground and into the hands of criminal gangs.

“Treating adults like children by denying them the right to buy cigarettes legally would take the nanny state to another level.

“Smoking rates have been falling for decades,” Clark said. “The idea that any government would prioritize tackling smoking at a time when the country faces far more important challenges at home and abroad is frankly obscene.

“If it’s true that the prime minister wants to introduce some of the world’s toughest anti-smoking measures, denying millions of adults the freedom to choose, it will be a Conservative government in name only.”

September 25, 2023

Russia Introduces Flexible Export Duties

Russia has introduced flexible export duties on tobacco products, alcohol products, live animals, fish, dairy products, vegetables, fruits and many other goods, reports Tass.

The temporary measure is set at 4 percent to 7 percent at an exchange rate above RUB80 ($0.83) per dollar. At RUB80 per dollar and below, the duty will be zero.

The measure is aimed at protecting the domestic market, and there are exceptions for some items.

September 25, 2023

Superdrug to Stop Selling Disposables in UK and Ireland

Superdrug will stop selling disposable vape products in its U.K. and Ireland stores following environmental concern over the products, reports the Guardian.

The retailer noted that it would have its stock completely cleared out by the end of the year.

“The rate that consumers are using single-use vapes and discarding them is worrying and alarming for the environment,” said Lucy Morton-Channon, Superdrug’s head of environment, social and governance. “The lasting effects that single-use vapes are having on the environment needs to be addressed, and I am pleased that we’ve decided to remove them from all stores.”

Superdrug also cited risk of fire from improper vape disposal as a reason for discontinuing sales.

September 25, 2023

JTI Calls for Greater Cooperation Against Illicit Trade

JTI called for greater international cooperation between government agencies, industry and law enforcement in tackling the illicit trade in cigarettes.

Speaking at the Global Tobacco and Nicotine Forum (GTNF) in Seoul, Sept. 19-21, Julian Cheung, the anti-illicit trade operations director for JTI’s Asia-Pacific region, warned that criminal groups involved in the illegal tobacco trade, siphon much-needed tax revenue from state budgets. “They don’t comply with laws and regulations and, therefore, taxpayers, governments and legitimate businesses are all paying a hefty price,” she noted.

“Billions of dollars in revenue are lost to this criminal activity,” said Chueng. In 2019, the World Bank estimated the cost of the illicit tobacco trade to governments at between $40 billion and $50 billion annually.

“Let’s shift the narrative surrounding illegal trade and act together,” said Chueng in her presentation. “Through innovative strategies, cooperation and a focus on disrupting the financial foundations of these criminal networks, we can curtail the illegal tobacco trade, and safeguard our communities and economies.”

Chueng’s call for action fit well with the GTNF’s theme, “Change the Conversation. Change the Outcome.” The conference brought together hundreds of stakeholders from across the industry, including businesses, research consulting groups, scientists, public policy and regulatory experts and educators, to discuss industry trends and challenges and share best practice thinking.

September 24, 2023

Smoore Demonstrates its Commitment at GTNF

A Golden Leaf Award and keynote presentation highlight the company’s investments in cutting-edge vaping technology.

At the recent Global Tobacco & Nicotine Forum in Seoul, Smoore earned a Golden Leaf Award and proposed a framework to help the industry “innovate through challenges.”

The atomization company was recognized for its Vaporesso COSS, which stands for “Convenient Operating and Smart Supplying,” according to Smoore.

“One of the major pain points for vapers is the trade-off between e-liquid or battery endurance and convenience,” explained Smoore Vice President Eve Wang upon receiving the award. “Typically, the longer it lasts, the less convenient it becomes. That is why COSS was introduced. It keeps you powered up and well-supplied with its smart supplying system. Additionally, thanks to its coil-e-liquid separation design, it’s also leak-resistant, ensuring a fresh puff every time.”

In thanking the GLA judges, Wang promised Smoore would keep pushing forward and innovating.

The company’s commitment to innovation was also demonstrated in Wang’s keynote speech at GTNF.

She started by giving an overview of development of vapor products over the past 20 years and summarizing the biggest current challenges—preventing underage vaping and minimizing the environmental impact of vaping products.

According to Wang, vaping efficiency is a combination of atomization efficiency and power efficiency. “For atomization efficiency, there are several key factors to be considered, such as e-liquid supply, the physical and chemical process atomization, as well as the technology for aerosol generation and distribution,” she explained.

“We have seen some promising results in these areas,” she said. “If we translate it into consumer benefits, atomization efficiency is fully utilizing e-liquid for good taste, more puffs and improvement in cost effectiveness. Power efficiency translates into increased energy density; therefore we are able to reduce the battery size as small as possible. It means less impact to the environment and a longer life cycle.”

Wang then shared the contributions to vaping efficiency made by Smoore’s Feelm Max, Feelm Air and Power Alpha products.

She concluded her speech by encouraging stakeholders to keep innovating and evolving the technology to improve harm reduction, cost-effectiveness and sustainability, along with providing a better user experience. Wang urged her audience to harness collaborations in innovation and social responsibility to achieve a balanced solution between regulation and user experience. Following her speech, Wang moderated a panel titled “Innovating Products for the Future.”

Later that day, Smoore Senior Strategy Director Rex Zhang joined a group of panelists to provide an update on research and innovation relating to next-generation products.

Zhang detailed Smoore’s advancements in sustainability and vaping efficiency. The company, he said, had reduced the amount of lithium materials in its vaporizers and increased the lifespan of its products, thus reducing the environmental impact of disposables.

Demonstrating Smoore’s commitment to preventing underage vaping, Zhang highlighted the Feelm Max’s smart child lock. Once an adult user puts down the vape and doesn’t use it for a while, the atomizer will automatically lock, he explained. If a child subsequently attempts to use it, the device will not produce vapor. To reactivate the device, an adult user must suck on the mouthpiece three times within two seconds.

Zhang also spoke about the importance of regulatory compliance and the user experience. He expressed confidence that science would demonstrate the potential of electronic nicotine devices as tobacco harm reduction tools.

Going forward, Smoore innovation efforts will focus heavily on vaping efficiency, Zhang explained. “It is our internal thinking—the engine driving us forward to achieve more,” he said. “Smoore’s mission ‘Atomization Makes Life Better,’ aligns very well with this objective to continue to work on the R&D; improving it for bettering people’s life.”

September 23, 2023