Blog - Tobacco Reporter

Hong Kong May Resume ENDS Shipments

The Hong Kong government wants to resume shipment of alternative smoking products through the city to boost the air cargo industry, reports the South China Morning Post. Domestic sales would remain illegal under the proposal.

The city currently prohibits imports and transshipment of electronic nicotine-delivery devices, many of which are manufactured in neighboring Shenzhen.

“The government hopes to ensure the policy on the importation ban on alternative smoking products will be preserved while maintaining Hong Kong’s position as a leading international aviation and logistics hub,” said Pamela Lam Nga-man, deputy secretary for transport and logistics.

Hong Kong International Airport handled 5 million tons of cargo in 2021, which is about 42 percent of the city’s overseas trade worth about HKD4.34 trillion ($556 billion). Air cargo volumes fell 18 percent on average from May to October of 2022 compared with the same period last year. Some of this decline was attributed to loss of transshipment of alternative smoking products from mainland China; most of the materials were transported through Hong Kong.

Under the government’s proposal, products that arrive by sea for air shipment would use a mainland logistics park set up under a pilot transshipment scheme between the city’s airport and the mainland city of Dongguan. A scheme for secure road transport from the mainland would be set up, documents would have to accompany shipments to prevent them leaking into the black market, and products would have to be directly transferred by designated routing in Hong Kong. Goods would be delivered to restricted areas of the airport and held until flown out. Provision of advance cargo information, application of designated seal or e-lock on containers and GPS tracking of cargo would also be used.

November 29, 2022

Greenbutts and Boegli Partner in Filters

Greenbutts and Boegli Gravures have jointly developed a new technology to manufacture biodegradable filters.

Trademarked as Greenbossing, the innovation enhances and tailors existing filtration capabilities along with the sensorial experience, according to the companies.

Greenbutts’ fully patented biodegradable filters deliver the sensorial experience of traditional cigarette filters without the plastic waste.

“For decades, our company has placed itself on the cutting edge of new technological solutions in the field of macro, micro and nano embossing solutions called ‘Vividus,’ ‘Midas’ and ‘Iris,’” said Boegli Gravures CEO and chairman Charles Boegli in a statement. “We are very proud to partner with Greenbutts to join our competences and address the huge ecological needs arising in the field of filter manufacturing, to which Greenbossing will be the answer.”

“Our organization has cultivated a strong partnership with the world-renowned embossing technology company Boegli and is pleased to announce the patent filing of our joint technology,” said Luis Sanches, chief strategy officer of Greenbutts. “This new IP will revolutionize the process of Greenbutts’ filter rod manufacturing. Greenbossing is a truly innovative feature, which will strengthen our position by introducing the next generation of biodegradable filters for the tobacco industry.”

“We are very proud to have Boegli Gravures as a solid and reliable partner,” said Greenbutts CEO Tadas Lisauskas. “The embossing technology that we jointly developed is nothing short of revolutionary, and we look forward to introducing even further technological advances in the coming months. As the cigarette industry is faced with transformative changes, driven by single-use plastic legislation and stronger commitments to their environmental agendas, we will ensure that Greenbutts continues to offer industry-leading innovations to maintain our leadership status in assisting with this transition.”

November 29, 2022

Gallup: Fewer Young Americans Smoking

The smoking rate among young Americans has fallen from 35 percent to 12 percent over the past 20 years, reports The Hill, citing to a new Gallup poll.

Data shows that the decline among those aged 18 to 29 was more than double any other age group measured, meaning young adults are the second least likely group to smoke following those aged 65 and older.

Between 2001 and 2012, the rate of young adult smokers was higher than any other age group.

Between 2019 and 2022, 7 percent of U.S. adults reported smoking e-cigarettes, and 19 percent of young adults reported e-cigarette use.

“Given these differences, young adults are more likely to vape than to smoke cigarettes while among older age groups, cigarette smoking prevails,” the report states.

It is unclear how e-cigarette use has grown in this age group in recent years as Gallup only started polling e-cigarette use in 2019. Data from the U.S. Centers for Disease Control and Prevention shows an increase in youth e-cigarette use between 2011 and 2018, however.

“These data suggest that much of the decline in cigarette smoking among young adults may have been offset by vaping, indicating that young adults are still smoking products containing nicotine but through different means,” the Gallup report states.

November 29, 2022

Vape Group Denounces EU Vape Tax Proposal

The World Vapers’ Alliance (WVA) has denounced the EU’s leaked plan to increase vaping taxes, according to the U.K. Vaping Industry Association.

“The [EU] Commission claims that higher taxes will improve public health, but the reality is the exact opposite,” said WVA Director Michael Landl. “A less harmful alternative, such as vaping, must be affordable for ordinary smokers trying to quit cigarettes. If the commission wants to reduce the burden of smoking on public health, they must make vaping more affordable and accessible, not less.

“High taxes hit the least advantaged people most. In times of multiple crises and people struggling to make ends meet, making vaping more expensive is the opposite of what we need. Policymakers must understand that tax increases on vaping will force people back to smoking or the black market, a scenario nobody wants. In times of crisis, people shouldn’t be further punished by an unscientific and ideological fight against vaping. This must be stopped,” said Landl.

“Rather than fighting vaping, the EU finally must embrace tobacco harm reduction. What we need is risk-based regulation. Vaping is 95 percent less harmful than smoking and, therefore, must not be treated the same way as conventional smoking,” added Landl.

November 29, 2022

Court Dismisses Suit to Outlaw Tobacco

A Kenyan court dismissed a petition by Ibrahim Mahmoud challenging the legality of the production, manufacturing and use of tobacco products, reports Business Daily.

The suit requested that the government ban the production, supply, management, dissemination, consumption and use of tobacco products and cigarettes as well as requesting that cancer be declared a tobacco-related ailment and a national disaster requiring special administrative action.

The suit was dismissed by Justice Hedwig Ong’udi on grounds that the petitioner did not prove that the Tobacco Control Act and the Tobacco Control Regulations 2014 are contrary to the constitutional provisions that were allegedly violated.

“It is not, therefore, enough for the petitioner to solely rely on his dissatisfaction in the use and legalization of tobacco products in Kenya. He should avail [sic] evidence to show how the statute and regulations are contrary to the provisions of the constitution complained of,” Ong’udi said.

November 29, 2022

Vape Sector Boosts U.K. Economy: Report

The vape industry has had a considerable positive impact on the U.K. economy, according to a new report compiled by the Centre for Economics and Business Research (CEBR) on behalf of the U.K. Vaping Industry Association (UKVIA).

Valued at £2.8 billion ($3.36 billion) in 2021, the U.K. vape sector supports almost 18,000 full-time-equivalent jobs in retail, manufacturing and supply chain. What’s more, smokers abandoning cigarettes in favor of less harmful e-cigarettes have saved the National Health Service (NHS) more than £300 million in 2019 alone, according to the report.

Even as many businesses suffered in recent years, vape retail stores have bucked the trend and represent one of the biggest growing sectors since the first decade of the 21st century when they started to appear for the first time.

From 2017 to 2021, the U.K. vape sector’s turnover grew by 23.4 percent to £1.33 billion last year alone. When indirect economic benefits such as supply chain support and the spending power of vape sector workers is factored in, the economic impact more than doubles.

In 2021, the vaping industry paid £310 million in taxes to the British exchequer.

CEBR estimates that the vaping sector saved the U.K. £322 million in smoking-related healthcare costs in 2019. The research organization reckons that if 50 percent of smokers switched to vaping, the potential healthcare savings would have been £698 million in 2020.

Meanwhile, the gain in economic productivity associated with smokers switching to using vaping products was estimated to be £1.3 billion in 2019. If 50 percent of remaining U.K. smokers switched to vaping, this would increase to £3.33 billion, according to the study.

“In little over a decade, vaping in the U.K. has grown from very much a ‘cottage industry’ to one of the fastest growing sectors in not just retail but the whole economy.”

John Dunne, director general, UKVIA

“The findings of the vaping industry’s first ever economic impact report demonstrates its significant success as a fast-growing disruptive sector,” says Owen Good, head of economic advisory at CEBR.

“Whilst many high street retailers have suffered in recent years, the vaping sector has bucked the trend, with significant growth both in-store and online. Even the effects of the pandemic have not significantly hampered the sector’s growth.

“The sector’s growth has been hugely beneficial to the U.K. economy; businesses and their employees directly involved in the industry and those running operations across the wider supply chain; and the NHS, which has seen a massive cost saving with increasing numbers of smokers switching to vaping in order to quit their habits.”

“In little over a decade, vaping in the U.K. has grown from very much a ‘cottage industry’ to one of the fastest growing sectors in not just retail but the whole economy,” said UKVIA Director General John Dunne in a statement.

“More people than ever are vaping, and by all measures, this is a true British success story, creating employment and wealth, generating precious revenue for the government through taxation while at the same time saving the NHS more than £300 million a year through people switching from smoking to vaping.”

November 29, 2022

Elfbar Warns of Fake Vapes

Potentially dangerous counterfeit disposable vaping products are flooding into the U.K. market, according to an investigation by Elfbar, a Chinese manufacturer. The company warns retailers and consumers that the illegal products are produced in “squalid Chinese factories with no license for manufacturing and regard for product safety.”

Since June 2021, Elfbar has cracked down on more than 120 counterfeit production and sales targets, including factories, warehouses, logistics and foreign trade companies. Its actions have resulted in the seizure of more than 2 million finished counterfeit Elfbar products, millions of packaging boxes, anti-counterfeit codes, semi-finished vaping pipes and other accessories, according to the company.

Elfbar CEO Victor Xiao said consumers would be horrified if they saw the conditions in which these products are made. “The criminals behind these counterfeit products care nothing about product safety or the health of consumers, and they cut every corner possible to maximize their profits,” he said in a statement. “Quite frankly, the conditions in these factories are absolutely squalid, where workers man production lines in filthy conditions with no regard to hygiene at all.”

Elfbar said that manufacturers and retailers have an important role in protecting consumers.

“While it can be hard to tell a fake product from the real thing just by looking at it, there is no excuse for any retailer to sell a counterfeit Elfbar product. Retailers can scan a code on the packaging to check the authenticity of the product, and we urge them to do this for every product they sell,” Xiao said.

John Dunne, director general of the U.K. Vaping Industry Association, applauded Elfbar for standing up against the counterfeiters.

“They pose a significant risk to the harm reduction reputation of the global vaping industry,” he said. “It’s why we have called for a retail licensing scheme here in the U.K. to prevent the sale of illicit products and much higher penalties of at least £10,000 [$12,058] per instance for retailers who break the law in this way,” he said. “Similarly, the counterfeiters and those who trade fake vapes along the supply chain need dealing with in a way by the relevant authorities that put them off from doing it ever again.”

November 29, 2022

Appointments at Japan Tobacco

Kei Nakano, currently the senior vice president, will take on the role of executive vice president and representative director, effective Jan. 1, 2023, and March 24, 2023, respectively. Nakano will succeed Naohiro Minami, who will assume a new position as member of the board without the right to represent the company as of Jan. 1, 2023, and will resign as member of the board upon the ratification at the 38th annual general meeting of shareholders, scheduled for March 24, 2023.

Suguru Fujiwara will assume the role of senior vice president of corporate affairs and communications for the tobacco business in Japan. Hisashi Shimobayashi will assume the role of senior vice president of information technology. Yuki Otaki will assume the role of senior vice president of D-LAB. These newly appointed officers’ positions are effective Jan. 1, 2023.

A full list of resigning board members and changes in responsibility can be found on JT’s website.

November 29, 2022

EU: Sweden Retains Right to Set Snus Tax

The EU Commission’s spokesperson for tax matters, Daniel Ferrie, said at a press conference on Nov. 28 in Brussels that Sweden has the right to set the tax level on snus.

His comments, reported by Aftonbladet, follow an uproar among Swedish snus lovers after the publication of a leaked document suggesting the EU wants to force Sweden to raise the tax on snus by 200 percent.

The document, which was seen by Aftonbladet, contains proposals for a new excise tax on tobacco.

If applied to Sweden, the price of a can of portioned snus would have increased by approximately SEK34 ($3.26). The price of a can of loose snus would have increased by approximately SEK62 compared to today. A can of General loose snus would cost over SEK120 under the proposal.

Reminding his audience that Sweden is exempted from the EU snus ban, Ferrie said the bill under discussion would not change Sweden’s status. “Sweden will retain its full freedom to set tax regimes and excise taxes for snus,” he said.

November 28, 2022

Stabilization Settlement Funds Available

Current and former tobacco growers who wish to claim funds from the U.S. Tobacco Stabilization lawsuit settlement should complete a proof of claim form by Dec. 12, 2022.

The settlement stems from a lawsuit against the Flue-Cured Tobacco Cooperative over withheld funds, which are now being returned to qualifying grower members.

Tobacco growers who were a member of the cooperative at some point between 1946 and 2004 are eligible for payment considerations.

Growers claiming funds must supply their FC Number. Alternatively, they must provide sufficient identifying information, including all names and addresses used during the period that they marketed flue-cured tobacco.

A copy of the qualified settlement fund procedures, the proof of claim form and additional relevant information is available at https://omniagentsolutions.com/lewissettlementclasstrust.

November 28, 2022