Blog - Tobacco Reporter

Smoking Persists Despite FCTC

China continues to grapple with significant tobacco consumption, despite adopting the World Health Organization’s Framework Convention on Tobacco Control (FCTC) two decades ago, reports The Straits Times.

In November 2014, the State Council released a draft on national tobacco control guidelines to meet its obligations under the FCTC. However, the draft never progressed beyond the public consultation phase, which was supposed to be completed by the end of that year, according to the Singpore-based newspaper.

As the world’s largest tobacco producer and consumer, China still boasts an estimated 300 million smokers, constituting nearly a third of global smokers. According to The Straits Times, this phenomenon persists due to various factors including social norms, affordability of cigarettes and limited public education.

Despite efforts such as anti-smoking campaigns and banning smoking in government buildings, many individuals continue to smoke, encouraged by the ubiquity of tobacco shops, low-cost cigarettes and deeply rooted cultural practices.

The State Tobacco Monopoly Administration (STMA), which controls the tobacco industry, also acts as a significant employer, providing jobs to over half a million people across the nation.

In much of China, the tobacco industry is considered a prestigious employer, with its stable income, generous salaries and employee benefits. In surveys of fresh graduates, China’s big tobacco firms—largely state-owned enterprises—are consistently rated some of the best companies to work for, with degree holders happy to take on blue-collar jobs on the factory lines.

Manufacturing some 2.4 trillion cigarettes a year, China’s tobacco industry posted a profit of RMB132 billion ($18.3 billion) in profits in 2022, up nearly 12 percent from the year before.

STMA’s operational arm, the China National Tobacco Corp., does not report sales figures but posted a record taxable income of RMB1.44 trillion in 2022. By comparison, the second-highest taxpayer, the Industrial and Commercial Bank of China, reported taxable income of RMB109 billion.

While the anti-smoking lobby has been urging the government to sever the ties between the industry and its regulator, few expect that to happen, citing a lack of political will.

August 28, 2023

Cuban Tobacco Protected from Rain

Cuban tobacco growers have taken measures to protect their harvested tobacco from heavy rainfalls in the wake of a tropical storm in the Caribbean, according to Prensa Latina.

Leaf totaling 18,000 tons has been distributed in warehouses and selected from different territories, and around 1,000 tons remain in farmers’ natural curing houses with proven protection conditions, according to Yoel Hernandez, territorial delegate of agriculture.

Osvaldo Santana, a Tabacuba representative, stated that farmers have the necessary blankets to prevent water from damaging the tobacco leaves.

Due to the impact of rainfall, food for consumption is collected, seedbed irrigation is suspended, and work is done on soil drainage to help minimize damages. Seeds of root vegetables and other vegetables are also preserved to help guarantee future crops, according to Hernandez.

August 28, 2023

Ukraine Lists JT as a War Supporter

Ukraine’s National Agency on Corruption Prevention has put Japan Tobacco International on its list of companies supporting the Russia-Ukraine war, reports The Japan Times.

JTI holds about a third of the Russian market. The company has suspended new investment and marketing activities in Russia based on Western sanctions on Moscow following the country’s invasion of Ukraine. The corruption prevention agency, however, criticized JTI for continuing business in Russia, resulting in the company paying large amounts of taxes to the country, helping the economy.

The company is aware of the agency’s action, according to a Japan Tobacco official, who also stated that the company is doing business in Ukraine as well. “We are providing aid and support to (Ukrainian) people in need and continuing to make contributions to the Ukrainian economy,” the official said.

August 28, 2023

Rio Grande do Sul Takes Stance Ahead of COP

The Rio Grande do Sul State Assembly’s Subcommittee on the Defense of the Tobacco Supply Chain held meetings in several tobacco-growing municipalities to develop a common stance ahead of the Framework Convention on Tobacco Control’s 10th Conference of the Parties (COP10) set for November in Panama.

“Contrary to other developed countries, as is the case of the United States, Brazil gave in to political correctness upon signing the Framework Convention, a fact that, in my opinion, was a mistake,” said State Deputy Marcus Vinicius in a statement. “From there to here, several restrictions were imposed on the sector, and we are going to take this document to all major representatives of the federal government who are part of this initiative so that no one can excuse themselves from failing to defend the sector, making it possible for us to promote a respectful debate but equally more responsible about the entire supply chain.”

“The COP is the worst dictatorship that exists, where our business is debated, and we are not allowed to take part,” said Iro Schunke, president of the Interstate Tobacco Industry Union (SindiTabaco). “Brazil, which should be the protagonist of the cause that comprises the production and export of tobacco, is walking in the opposite direction, adhering more quickly than other countries, where tobacco is neither grown nor exported, to the recommendations issues by the Conference of the Parties.”

A presentation of the final report based on the meetings is set for Aug. 29 at 4 p.m. during the 46th Expointer at the Assis Brazil Exhibition Park.

August 28, 2023

ENDS Bans Spread in the Americas

Following the recent ban on the use and marketing of electronic cigarettes in Venezuela, 21 countries in the Americas regulate electronic nicotine-delivery systems (ENDS), such as e-cigarettes and vapes, according to the Pan-American Health Organization (PAHO).

“The resolution that regulates new and emerging nicotine and tobacco products in Venezuela is an important step forward for the country and for the region,” said Anselm Hennis, PAHO director of noncommunicable diseases mental health.

“We hope that this measure motivates other countries to take action on these products, which are addictive, harmful and aggressively advertised toward the youngest,” he added.

The most recent countries to join the initiative are Argentina, Brazil, Mexico, Nicaragua, Panama, Suriname, Uruguay and Venezuela, and the PAHO said these countries prohibit ENDS sales altogether, and 13 other countries have partially or totally adopted one or more regulatory measures.

Fourteen countries in the Americas, including the Caribbean, lack any regulation of vaping products, according to the PAHO report.

August 28, 2023

TPMP Comment Period Extended

The U.S. Food and Drug Administration has extended the comment period on its proposed rule for tobacco manufacturing practices.

Stakeholders now have until Oct. 6, 2023, to share their thoughts.

The proposed rule would place new requirements for tobacco product manufacturers regarding the manufacture, design, packing and storage of their products. According to the FDA, these proposed requirements would help protect public health by, among other things, minimizing or preventing contamination and limiting additional risks by ensuring product consistency.

August 28, 2023

Manufacturers Enact Tracking System

About 20 local cigarette manufacturing companies signed agreements with Pakistan’s Federal Board of Revenue (FBR) for implementation of a track-and-trace system, according to ProPakistani.

The local companies have been forced to start implementation of the system due to vacation of stay orders from courts and the deputation of Inland Revenue officials. The FBR has been in a court battle for about two years over implementing the system; the FBR finally won the legal battle and is now enforcing the track-and-trace system at local factories.

Implementation is at different stages for each company; almost all local manufacturers have signed the agreements with the FBR and begun implementing the track-and-trace system. One company has fully implemented the system while six companies are manually stamping cigarette packs. Some companies have purchased applicators, and other companies have started test runs.

All manufacturing companies within the jurisdiction of Azad Kashmir have obtained stay orders against the system, however.

August 25, 2023

Romania Bans Flavors for Heated-Tobacco Products

Last month, the Romanian government enacted Governmental Ordinance No. 23/20.07.2023 amending and supplementing the Romanian Tobacco Law (GO 23). The move bans all flavored heated-tobacco products.

The law takes effect on Oct. 23, 2023.

Prior to enacting GO 23 under the framework of Romanian Tobacco Law, only cigarettes and roll-your-own tobacco were subject to the prohibition of characterizing flavors and containing flavorings in any of their components, such as filters, papers, packages, capsules or any technical features.

The aim of GO 23 is to extend this prohibition to heated-tobacco products and to impose more restrictive requirements on packaging and labeling of such heated-tobacco products, according to media reports.

For the first time, GO 23 enacts a legal definition of “heated-tobacco products,” which refers to “a novel tobacco product that is heated to produce an emission containing nicotine and other chemicals, which is then inhaled by user(s) and that, depending on its characteristics, is a smokeless tobacco product or a tobacco product for smoking.”

This definition will include any type of vaping devices that entail heating of tobacco in view of obtaining an inhalable emission containing nicotine and other chemicals.

Heated-tobacco products with any type of “characterizing flavor,” such as menthol, fruits, etc., will no longer be allowed in the Romanian market.

Additionally, each unit of and any outside packaging of heated-tobacco products must carry the mandatory message: “Tobacco smoke contains over 70 substances known to cause cancer.”

GO 23 also states that each unit packet and any outside packaging of heated-tobacco products for smoking must carry combined health warnings that observe all the requirements set out in art.

All producers and importers of heated-tobacco products in Romania must notify the Romanian Health Ministry within 90 days after the enactment of GO 23.

August 25, 2023

Vape Recycling Introduced in Switzerland

E-cigarette sales in Switzerland have increased over the past few years, with 10 million products imported in 2022. Most vapes end up in the landfill rather than being recycled as required by the Ordinance on the Return, Taking Back and Disposal of Electrical and Electronic Equipment.

In conjunction with various partners, SENS eRecycling has developed an industry solution for the environmentally friendly disposal of e-cigarettes, according to the company’s website.

Upon request, SENS eRecycling will deliver vape recycling bags to any e-cigarette sales outlet; the bags can be used to collect returned e-cigarettes and send them back to SENS eRecycling by post. Sales outlets and consumers can also hand in used vapes to any SENS collection point throughout Switzerland.

August 25, 2023

Juul to Restructure and Reduce Employees

Juul Labs has announced a company restructuring aimed at reducing operating costs and positioning the company to continue to advance its mission during a period of regulatory and marketplace uncertainty.

According to a press release, the principal aim of this restructuring is to enable the company to maximize profitability and cash-flow generation while continuing to invest in its core priorities, which include delivery of high-quality products to its commercial partners, ongoing development of next-generation products, engagement with the U.S. Food and Drug Administration regarding Juul’s pending and possible future market authorization applications, and commercial growth consistent with compliance with all applicable laws and regulations.

With these operating cost reductions, Juul Labs says it is positioned to increase its adjusted EBITDA margins and generate meaningful free cash flow before litigation settlements. In doing so, the company will reduce its need to access capital pre-premarket tobacco product application, extend its time horizon to continue its pursuit of market orders from the FDA and generate positive equity value as the company pays down liabilities over time.

Juul says it remains fundamentally optimistic about the prospects for Juul Labs Inc.—“a view rooted in our belief that our technology and our pipeline of new innovations represent the most valuable ever brought forward to transition adult smokers away from cigarettes while combating underage use,” the company wrote on its website.

August 24, 2023