Blog - Tobacco Reporter

Underage Vaping Nearly Doubles in U.K.

Current vaping among U.K. children aged 11-17 was up from 4 percent in 2020 to 7 percent in 2022, according to the annual YouGov youth survey for Action on Smoking and Health (ASH) carried out in March and published on July 7. The proportion of children who admit ever having tried vaping has also risen from 14 percent in 2020 to 16 percent in 2022.

Disposable e-cigarettes are now the most used product among current vapers, up more than seven-fold from 7 percent in 2020 and 8 percent in 2021, to 52 percent in 2022. Elf Bar and Geek Bar are overwhelmingly the most popular, with only 30 percent of current users having tried any other brands.

Over the past year there has been growing concern about the increasing popularity of disposable vapes with young people, but this is the first time national figures have been available to show the scale of the change. ASH said the increase in vaping shown by the survey is a cause for concern, and needs close monitoring. However, 92 percent of under 18s who’ve never smoked, have also never vaped, the organization pointed out—and only 2 percent have vaped more frequently than once or twice.

“Just to give it a try” is still the most common reason given by never smokers for using an e-cigarette (65 percent). For young smokers the most common reason for using an e-cigarette was “because I like the flavors” (21 percent) followed by “I enjoy the experience” (18 percent) then “just to give it a try” (15 percent), but they also said, “because I’m trying to quit smoking” (11 percent) or “I use them instead of smoking” (9 percent). Fruit flavors remain the most popular (57 percent).

Vaping behavior is strongly age related, with 10 percent of 11-15 year olds ever having tried vaping, compared to 29 percent of 16 and 17 year olds (the figures for those currently vaping are 4 percent and 14 percent respectively). And while underage vaping has risen, underage smoking is lower than it was in 2020 (14 percent in 2022 compared to 16 percent in 2020).

For the first time this year the survey asked about awareness of promotion of e-cigarettes. Over half (56 percent) of 11-17 year olds reported being aware of e-cigarette promotion, most frequently in shops, or online, with awareness highest amongst those who’d ever vaped (72 percent). Tik Tok was the most frequently cited source of online promotion (45 percent) followed by Instagram (31 percent).

In response to the survey results, the U.K. Vaping Industry Association (UKVIA) called for a range of get-tough measures to crack down on unscrupulous retailers who sell vapes to young people.

“The UKVIA understands the need for the right balance between supporting adult smokers to quit without encouraging take up amongst under-18s and ‘never-smokers,’” said UKVIA’s Director General John Dunne in a statement.

In a letter to the Department for Health and Social Care, the UKVIA proposed a set of recommendations to come down hard on those who sell vapes to minors while maintaining vaping’s critical role for helping smokers to quit, including fines of £10,000 ($11,897) and a national retail licensing scheme.

July 12, 2022

TIMB Vows Crackdown on Side Marketing

Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) vowed to crack down on side marketing, noting that five exporters lost $57 million due to the practice in 2021, according to News Day.

Side marketing is a form of contract breach in which contracted tobacco growers sell their produce to third parties in violation of an agreement to sell all their leaf to the party who provided the agricultural inputs.

“This year, 2022, the Tobacco Industry and Marketing Board is on an accelerated drive to end tobacco side-marketing. This criminal practice is responsible for the loss of millions of dollars annually and has the potential to kill the tobacco industry,” the TIMB wrote in an article published on its website.

“TIMB cannot accurately ascertain how much is lost annually since side-marketing is an illegal activity whose statistics cannot be accurately ascertained. However, in 2021 alone five exporters lost US$57 million as a result of several factors and chief among them being side marketing,” it said.

Prior to Zimbabwe’s radical land reform program in the early 2000s, most of the country’s tobacco was produced by commercials farmers who funded their own operations and sold their leaf at auction. Today’s Zimbabwean tobacco production is dominated by smallholder production and contract buying, as most of the new farmers are unable to pre-finance their crops.

In 2021, the TIMB created a special unit, the inspectorate department, to prevent, detect and investigate side marketing and other illegal activities in the tobacco industry.

July 12, 2022

U.K. Counterfeit Cigarettes Sales up by One-Third

Consumption of counterfeit cigarettes jumped by more than a third in the U.K. in 2021, reports Talking Retail, citing a recent KPMG study commissioned by Philip Morris International.

As a result, the number of counterfeit cigarettes smoked in the U.K. topped 3 billion for the first time since the study began 16 years ago.

“The KPMG report highlights how both illicit tobacco and vapes are becoming increasingly prevalent in the U.K., with the situation getting steadily worse over the past five years,” said Cem Uzundal, head of Philip Morris’ U.K. field force.

“There’s a real job to be done to tackle this issue by authorities, tobacco manufacturers and even convenience retailers, who can help by reporting stores selling illicit tobacco in their area.”

“The KPMG report underlines what my team see on British streets month in, month out: illicit products—particularly counterfeits—widely available for sale,” said Will O’Reilly, a former Scotland Yard detective chief inspector who carries out regular test purchases of illicit products on behalf of Philip Morris.

“Organized criminal groups appear to consider the risk of being caught well worth the prospect of making around £1.5 million profit [$1.79 million] for every container load they bring into the U.K.”

July 11, 2022

Pouch Segment Growing Rapidly in Spots

While not yet widely available, sales of nicotine pouches are developing rapidly in select geographies, according to a blog post by the Foundation for a Smoke-Free World (FSFW) of reduced-risk products. The largest markets are currently in high-income and middle-income countries, with Sweden and the United States topping the list, partly as a result of their strong oral tobacco cultures.

Of the 15 companies ranked by the FSFW’s Tobacco Transformation Index, which measures the extent to which nicotine companies are making progress toward reducing the consumption of high-risk products, seven currently offer nicotine pouches. In 2021, nicotine pouches represented 0.3 percent of the world tobacco market in value terms.

Twenty-four of the 36 countries covered by the Tobacco Transformation Index allow nicotine pouches. Of those 24 markets in 2021, the market size exceeded 10 million units in seven: the United States, Sweden, the United Kingdom, Germany, Ukraine, Switzerland and Poland.

Legislation differs among the studied geographies, with some countries treating nicotine pouches as consumer products and others viewing them as tobacco products. Germany’s Federal Office of Consumer Protection and Food Safety determined that nicotine pouches are a foodstuff containing an unauthorized novel food ingredient—nicotine—and thus illegal for sale.

July 11, 2022

Canada Working on Medicago’s ‘Tobacco Problem’

The government of Canada is “working on a solution” to help Medicago donate its Covid-19 vaccine to low-income countries, reports CTV News.

In February, Health Canada approved the pharmaceutical firm’s Covifenz vaccine for people aged 18–64. The federal government has signed a contract to buy up to 76 million doses with plans to donate vaccines to low-income countries.

However, the World Health Organization has rejected the vaccine because Philip Morris is a minority shareholder in Medicago, and the U.N. agency has a strict policy about engagement with the tobacco industry. Donations are not allowed without WHO approval.

Medicago’s majority shareholder, Mitsubishi Tanabe Pharma, has approached the Quebec government for support so Medicago’s vaccines “can receive a favorable reception from the WHO and be marketed on a large scale,” according to an entry in the Quebec Registry of Lobbyists.

During a meeting with Mitsubishi executives in Japan, Innovation, Science and Industry Minister Francois-Philippe Champagne indicated that there were discussions about the future of Medicago as a global vaccines manufacturer.

While ruling out buying shares in Medicago for the time being, Champagne indicated that the government was looking at other ways to help make Medicago a “global champion.”

Quebec Economy Minister Pierre Fitzgibbon said in June that he has been in discussions with Mitsubishi Tanabe Pharma executives to resolve the impasse, but the Japanese company must first negotiate the purchase of Philip Morris’ stake itself.

July 11, 2022

Malaysia: Cabinet to Consider Generational Smoking Ban

Malaysia’s Cabinet will review a bill this week that would ban smoking for those born after 2005, reports The Edge.

According to Health Minister Khairy Jamaluddin, the bill’s “implementation of the generational endgame” provision aims to prevent Malaysia’s younger generations from picking up the smoking habit and getting addicted to tobacco products when they grow older, as well as to reduce the number of smokers in Malaysia to less than 5 percent by 2040.

“This will be able to reduce the risk of premature deaths, chronic diseases and treatment costs that have to be borne by the government due to smoking complications among the community,” Jamaluddin said.

Presently, some 40.5 percent of men and 20 percent of women smoke in Malaysia.

Anticipating resistance to the bill from cabinet members worried about tax revenues and tourist spending, Khairy said that without the legislation, the government would have to bear treatment costs of about MYR8 billion ($1.81 billion) to treat health problems linked to smoking.

Malaysia’s bill, which would also regulate vapor products, is modeled on legislation in New Zealand, which in December 2021 revealed a plan to phase out smoking by gradually raising the smoking age until it covers the entire population.

July 11, 2022

Boka Tobacco Sales Suspended

Zimbabwe’s Tobacco Industry Marketing Board (TIMB) has suspended the Boka Tobacco Sales Floor (BSF) from purchasing tobacco from farmers with immediate effect, reports Africa Press.

The regulator acted on July 14 following several reports by growers that they have spent more than a month without receiving payment for their produce.

TIMB Public Affairs Officer Chelesani Moyo said the suspension will be reviewed after the BSF clears all its outstanding dues and provides proof of adequate financial resources.

“We have received several complaints from growers who have not been paid by Boka Tobacco Sales Floor after sales,” she said.

“As a regulator, we have engaged with Boka management to resolve the issue in an amicable manner.

With immediate effect, TIMB has suspended all tobacco purchases by Boka until they have cleared all outstanding payments and provided proof of adequate financial resources.”

July 11, 2022

Activist Investor to Oppose Match’s Sale

Elliot Investment Management is building a stake in Swedish Match and plans to oppose the pending takeover of the Scandinavian tobacco company by Philip Morris International under its current terms, according to Bloomberg.

In May, Swedish Match’s board of directors accepted Philip Morris International’s offer of SEK161.2 billion ($16.14 billion), which is subject to shareholder approval. Financial analysts said a deal has strategic merit for PMI given the Swedish Match’s strength in oral nicotine products and exposure to the lucrative U.S. tobacco market.

It’s unlikely that Elliott will succeed in building a large enough stake in Swedish Match to stop the deal on its own, according to Mads Rosendal, an analyst at Danske Bank.

“Even if they were to be successful in blocking the deal it would not necessarily be bad for Swedish Match spreads, as they were trading tighter than PMI before the deal announcement,” he wrote in a research note Friday.

Earlier this year, Swedish Match shareholder Bronte Capital also opposed the takeover, saying the offer price was “unacceptable,” according to Reuters.

Another shareholder has also said it was not clear whether the long-term value of Swedish Match was reflected in PMI’s offer price.

Some 90 percent of shareholders need to agree to the deal for it proceed under Swedish law.

July 8, 2022

Pakistan Mandates Tobacco Track-and-Trace System

Several tobacco companies are challenging Pakistan’s Federal Board of Revenue (FBR) in court, seeking relief from the country’s new track-and-trace system, according to reports in The International News and Dawn.

Starting this month, all tobacco companies operating in Pakistan must implement the country’s track-and-trace system. Tobacco products may enter the domestic market only if they carry stamps and unique identification markers.

To date, only three tobacco manufacturers—Pakistan Tobacco Co., Philip Morris International and Khyber Tobacco Co. (KTC)—have installed the track-and-trace system and made it operational. KTC Chief Technology Officer Shahid Sattar said the system would help the company enhance its presence in the Pakistani market and improve the quality of its products to international standards.

The companies challenging the FBR want to continue selling old stock. The agency instructed them to discontinue such sales on June 30.

The tobacco companies that are already operating the system maintain that it will succeed only if all players implement it. According to critics, the companies challenging the FBR instructions engage in illicit trade and fear the track-and-trace system will expose their illegal activities.

In addition to the multinationals, there are at least 21 tobacco companies operating in Pakistan, including 18 in Khyber Pakhtunkhwa and three in the country’s federally and provincially administrated tribal areas.

Out of the PKR134 billion ($645.47 million) in taxes collected from the tobacco industry in 2020, PKR131 was paid by two companies, which together held a 65 percent market share.

July 8, 2022

Brazil Maintains E-cigarette Ban

Brazil’s national health surveillance agency, Anvisa, decided on July 6 to maintain its ban on the import, advertising and sale of electronic cigarettes in Brazil, according to News Bulletin 24/7. The restriction began in 2009, but marketing continues illegally in the country, so Anvisa also called for increased inspections and educational campaigns to curb the illicit trade in e-cigarettes.

The decision was taken unanimously during a meeting of the body’s collegiate board. According to Anvisa Director Cristiane Rose Jourdan, scientific studies show that the use of electronic smoking devices increases the risk of smoking in young people, the potential for dependence and the likelihood of lung, cardiovascular and neurological health problems.

The Brazilian Medical Association (AMB) applauded Anvisa’s position. ”This is a wise decision, as there is increasing scientific evidence that the use of electronic smoking devices, the DEFs, is not harmless, does not support smoking cessation or is a form of harm reduction, but a product that causes dependence and can cause several diseases, especially cardiovascular, respiratory and cancer,” said Ricardo Meirelles, coordinator of the Commission to Combat Tobacco at AMB.

A survey carried out in the first quarter of 2022 by the Vital Strategies organization and the Federal University of Pelotas, revealed that 19.7 percent of Brazilians aged between 18 and 24 have tried electronic cigarettes.

BAT Brasil (formerly Souza Cruz) said it will assess the regulatory impact analysis of Anvisa’s decision when it is published.

“Dozens of countries have already understood the importance of risk reduction as part of their tobacco control policies and, given this reality, have advanced in the regulation of these devices,” the company said in a statement, citing the examples of United States, the European Union and the United Kingdom, among others.

Japan Tobacco International regretted Anvisa’s decision. “The use of electronic devices in the country is current and supplied exclusively by illicit trade. Legalized companies do not sell the product and the growth in consumption that affects the population comes from the illegal acquisition of devices,” the company said.

July 8, 2022