Boris Wintermans reflects on the success of Royal Agio Cigars.
By Brian Ledtke
Royal Agio Cigars may or may not be a name you’ve heard in the United States, but for those in Europe, you’ve probably heard of them before. After all, this company has been around for 115 years, despite being relative newcomers stateside. But with the release of their Balmoral Anejo XO cigar line five years ago and the 2019 release of a collaboration cigar with Litto Gomez of La Flor Dominicana Cigars, suddenly the U.S. market is abuzz.
Sitting across from me at the Royal Agio Cigars booth at the 2019 International Premium Cigars and Pipe Retailers (IPCPR) convention in Las Vegas, Nevada, USA, is current president, Boris Wintermans, the great-grandson of founder Jacques Wintermans. Boris Wintermans is eloquent and passionate about the cigar industry, which is evident not only in how he speaks but also in the way his piercing blue eyes light up when he talks about cigars. But it’s not only his love for cigars that makes Boris interesting; he also has a zeal and curiosity for discovery, and he certainly loves to live life on the edge.
“I like to be inspired by new experiences, whether it’s smoking a cigar or trying out a new motorcycle,” Wintermans says as he lights up a Balmoral Anejo XO Nicaragua. “I like to try new things, enjoy life and live in the moment.”
The Netherlands-based company was founded by Jacques in 1895 using 200 Dutch guilders—about $100. Four generations later, this small entrepreneurial company has become the fourth-largest maker of natural wrapped cigars in the world, making about 800 million cigars, and employs over 2,300 people.
However, Wintermans’ passions initially didn’t lead him into the cigar industry, despite growing up around tobacco.
“I probably smoked my first cigar when I was 3 years old or something,” Wintermans says, laughing. “Just kidding. But I was born into the cigar environment. I don’t know whether it was nature or nurture, but somehow it got into my system.”
After working in the family factory during his teenage years, Wintermans attended university for advertising, and after finishing school, he went backpacking for three months in South America where he visited tobacco plantations, which he says led him on a trail of discovery.
Shortly after returning to the Netherlands and working in the advertising business for a brief time, Wintermans decided the nine-to-five life wasn’t for him, and it wasn’t long after that Royal Agio Cigars offered him a position that he readily accepted.
“I wasn’t forced into it,” Wintermans says. “If I ever want to pass this on to my kids, it will have to be their choice. I just want them to be happy, and if it happens to be in the family business, that’s awesome. If it doesn’t, I’m never going to push anybody into a mold.”
Wintermans recalls being on a sailboat in the Mediterranean with his father when he was about 20 years old, smoking one of their first long-filler cigars, a Balmoral. He remembers it was that moment that really began his love for the industry: “Just enjoying the moment, having a nice Churchill, sitting there, and just enjoying the hell out of that cigar.”
Royal Agio Cigars has been in the U.S. market for quite some time now with their other brands (Panter, produced since 1935, and Mehari’s, produced since 1976), but it was their Balmoral premium handmade cigar line that started turning heads about 5 years ago.
The first Balmoral cigar Wintermans blended was the Balmoral Anejo 18, which used an 18-year-old Brazilian wrapper, and it was a huge hit. Unfortunately, the tobacco used in that cigar was extremely limited, and the company soon ran out, prompting Wintermans to begin planning a follow-up—the Balmoral Anejo XO.
“The Balmoral Anejo XO was the cigar that really put us on the map,” Wintermans says. “What we always try to do with our Balmoral cigars is just start on it and basically see where it ends. We have our curiosity; we want to discover new flavors, new tastes, and that takes us in a certain direction. What we don’t want to do is create something that’s already out there. You sometimes have to smoke 100 samples to get it right.”
Wintermans followed up the Balmoral Anejo XO with the Anejo XO Oscuro to take the Balmoral line in a different direction taste-wise and to surprise not only consumers but also himself. The same can be said for the next cigar in their lineup: the Anejo XO Connecticut, which isn’t your normal mild Connecticut cigar but one with an extra punch that will appeal even to the seasoned smoker. The Balmoral Anejo XO Nicaragua, released in August 2019, rounds out the Balmoral lineup and features a gorgeous sun-grown Nicaraguan Habano wrapper.
However, it was the cigar released just last year and the subsequent follow-up this year that created a buzz that even Wintermans didn’t expect. Last year, Wintermans teamed up with Ernesto Perez-Carrillo of EP Carrillo Cigars, under the newly released Balmoral Serie Signaturas collaboration platform, to create the Balmoral Dueto, which received a mountain of accolades. But this was just the beginning.
This year, Wintermans announced the second Serie Signaturas release, Paso Doble, a collaboration with Litto Gomez of La Flor Dominicana Cigars, which sent shockwaves through the industry. The buzz around the IPCPR tradeshow this July was one of shock: Gomez never collaborates … how did Wintermans convince him?
“Well, we said, ‘Litto, do you want to work with us? We might have a spot left. We may be able to squeeze you in,’” Wintermans jokes. “No, we’ve had a relationship for a few decades now, and we’re not the average guy making cigars. Litto, being a curious guy as well, likes to explore different routes and paths, and he was also keen to see where it could take us.”
“This is not something we normally do—in fact we never do it,” Gomez says, “but for Boris, I made an exception because we share the same simple philosophy: to be the best and do things the right way.”
The Balmoral Serie Signaturas Paso Doble combines each cigar maker’s tobaccos and intertwines them into a balance of flavors that stays true to each cigar maker’s signature blending style—the dark, full-bodied richness of La Flor Dominicana and the sophisticated, balanced intricacy of Balmoral cigars.
“You start out on a route and you create something special, and all of a sudden, people start noticing it, start tasting it, give you positive feedback, and I think that’s one of the most valuable things you can do,” Wintermans says. “That’s what we’re doing it for. It’s nice that people are engaged in the same journey we are.”
If you’ve noticed Wintermans mentioning “journey” and “curiosity” often, it’s because he does. Those words are very much a part of him and what make up his life’s philosophy: “Every day is a new opportunity to try something different. When is the last time you tried something for the first time?” His philosophy has segued itself into Balmoral’s social media hashtag: #CuriosityDrivesDiscovery.
And discover Wintermans has—racing motorcycles and cars, running triathlons, starting a band and even competing in a boxing match.
“With the racing and the boxing, it’s all about thrill, the speed, about taking some risks, but it’s also about just starting something and enjoying it for what it is,” Wintermans says. “And that is what is at the core of our brand.”
Aside from thrill-seeking and cigars, Wintermans’ family is also in the high-tech business—3D printing metal and supplying it to the aerospace and car industries. For now, his brother mostly runs that side of the family business, and Wintermans focuses on cigars, but when asked if he has ever thought about moving to the high-tech business, he pauses to think for a moment and then replies, “It’s an awful lot of fun, but I’m liking the cigar industry.”
It’s Wintermans’ curiousness and love for discovering new things that has brought him to where he is today, and it’s that same passion that will propel him, Balmoral and Royal Agio Cigars into the future.
“Life is not about the end goal; it’s about the process as much as doing what we love to do,” Wintermans says, looking down at his half-smoked Balmoral cigar. “And this is the one thing that’s remained a constant in my life. I’ve switch from one thing to another, but cigars have always been a constant in my life and in my family after four generations.”
The U.S. Food and Drug Administration (FDA) has modified the list of constituents or chemicals of concern to be included on a Harmful and Potentially Harmful Constituent (HPHC) list. This guide outlines the chemicals that have been removed from the list, those that have been added, and considerations for aligning non-clinical, toxicology assessments with analytical testing for Electronic Nicotine Delivery Systems (ENDS).
Section 904e of the Food, Drug, and Cosmetics Act requires the FDA to establish and regularly define as appropriate a list of HPHCs. These HPHCs represent the FDA’s current thinking on which chemicals present in the consumable portion of a tobacco product are most representative of the health risks commonly linked to tobacco use: cancer, cardiovascular disease, respiratory effects, reproductive problems and addiction. Though the revised list has yet to be published in the Federal Register, the FDA recommends that companies analyze 33 chemicals, along with flavor constituents that may be respiratory irritantants, to support their Premarket Tobacco Product Application (PMTA) applications for ENDS.
What chemicals have been removed?
Eight chemicals have been removed from the list of HPHCs recommended for analysis in ENDS products. These include 4-aminobiphenyl, 1-aminonaphthalene, 2-aminonaphthalene, ammonia, anabasine, benzo[a]pyrene, 1,3-butadiene and isoprene. These chemicals are currently listed on FDA’s “Established List of Chemicals and Chemical Compounds Identified by FDA as Harmful and Potentially Harmful Constituents in Tobacco Products and Tobacco Smoke” (2012) and are classified as carcinogens, respiratory toxicants, addictive substances, and/or reproductive and developmental toxicants.
These chemicals have been removed as they are mainly considered to be related to the treatment or combustion of tobacco, and hence are considered less relevant for ENDS products.
What chemicals have been added?
The most notable changes to the list are the addition of 12 chemicals listed below, as well as nicotine from any source and flavorants, as applicable.
These additions are based on FDA’s current thinking that these chemicals could cause health hazards depending on the level, absorption, or interaction with other constituents. For example, propylene oxide is also included on the 2012 HPHC list as a carcinogen and respiratory toxicant. Although the FDA has not provided their own hazard classifications for the other newly listed chemicals, a closer look at these chemicals by reviewing publicly available toxicology databases indicates several potential health outcomes, such as respiratory system irritation.
And … remember to consider flavorants
The FDA guidance adds that manufacturers also consider whether to test for flavorants that can be respiratory irritants such as benzaldehyde, vanillin and cinnamaldehyde. This recommendation underscores the advantage of implementing a systematic toxicological screening assessment early in your PMTA planning to support an analytical testing strategy. Early toxicological screening during a planning phase will also steer the subsequent non-clinical studies proposed to support an evaluation of whether your product is appropriate for the protection of public health.
Do all the chemicals need to be tested?
The FDA explains in its guidance that it expect applicants will report the levels of HPHCs as appropriate for each product, so the reported HPHCs will differ among different product categories (i.e. liquid or hardware). A well thought out PMTA plan and consultation with FDA in a briefing meeting can provide clarification on product-appropriate testing. For example, for liquids, understanding product formulations, including flavorants, can provide justification for a client-specific HPHC testing plan. Also, the FDA recognizes that some of the constituents and chemicals listed may be ingredients in e-liquids (e.g. menthol, propylene glycerol, glycerol etc.). In these cases it may be acceptable to simply provide the quantity added, rather than measure constituent or chemical yields generated from the e-cigarette.
Dose is important when evaluating HPHCs
For PMTA submissions, complete toxicology profiles of the HPHCs will identify potential adverse health outcomes, the doses at which these potential effects are seen, and any exposure guidance values established by governmental agencies. Dose is important. As the FDA notes, the chemicals could cause health hazards “depending on the level.” Thus, any potential health effects should be considered in the context of the consumer exposure to determine potential health risks. This indicates the importance of product analysis of liquids and aerosols being closely aligned with both toxicological assessments and clinical evaluations of consumer use (human subject studies). Information necessary to evaluate HPHCs in the context of dose, and in comparison to other tobacco products and appropriate reference values, can then be provided.
Autumn Bernal is an independent consultant toxicologist at ToxCreative writing on behalf of Broughton Nicotine Services. Broughton offers an integrated approach to examining the toxicology of HPHCs and flavorants, undertaking clinical consumer use evaluations and implementing efficient analytical testing strategies.
A recent World Bank report outlined a number of key measures that could reduce illicit activity in the trade of tobacco products, including effective systems that can track the secure movement of cigarettes and other items through the supply chain from production or import to point-of-sale.
The report acknowledges a pioneer track-and-trace system already in operation in Brazil, highlights the strong performance of the current system in Ecuador and welcomes its expected implementation in Chile. It also hails the success of a “robust” excise stamp program in Ireland, notes the high rates of stamp usage in the Philippines, and acknowledges how a track and trace system in Kenya is contributing to industry best practice.
The International Tax Stamp Association (ITSA), which promotes the benefits of tax stamp programs and best practice within the sector, has welcomed the World Bank’s recommendation for greater investment in security solutions, which could ultimately drive down fraud and help governments around the world to collect additional excise revenues and control tobacco consumption.
“The World Bank report highlights how illicit tobacco trade is a major obstacle in the drive to control tobacco consumption and improve health outcomes,” says Christine Macqueen of ITSA. “Taxes and prices can have a major impact on curbing this illegal trade but need to be supported by strong governance and high-level security.
“As the case studies in the report show, countries should be encouraged to use the latest technology when putting in place high security excise tax stamps, be they labels or secured digital marks, which form the basis of robust systems to identify and track products as they move through the supply chain. This is in line with the provisions outlined in the World Health Organization’s Framework Convention on Tobacco Control (FCTC) Protocol.”
The World Bank report warns against relying on the tobacco industry when forming a strategy to combat illicit trade. It states that case studies from the U.K. and Ireland emphasize the need to fulfill obligations under Article 5.3 of the FCTC to prevent the tobacco industry from influencing public policy. Other case studies, including those from Georgia, Columbia, Australia and Malaysia, also confirm prior findings that the tobacco industry regularly overstates levels and changes in tobacco illicit trade to pressure governments into reducing taxes.
“It is vital that product identification and track and trace systems should be fully independent and not controlled by the interests of the tobacco industry,” says Macqueen. “We welcome the World Bank and WHO’s position that tobacco industry interference in public policy should be prohibited. We hope that the EU moves towards this stance; the revised EU Tobacco Products Directive currently mandates that only one of the five authentication features on cigarette packets needs to be provided by an independent third party. To improve transparency and best practice in the movement of tobacco goods, this must change.”
Despite the approval of IQOS, the FDA’s premarket application process is still flawed.
By Michael McGrady
At the end of April, the U.S. Food and Drug Administration (FDA) approved Philip Morris Products’ premarket tobacco product application (PMTA) for the company’s heat-not-burn device known as the I Quit Original Smoking system, or IQOS. An FDA press release states that the agency recognizes the potential improvement for population-level public health by authorizing such a product due to how heat-not-burn (HnB) systems work.
HnB systems, as we know, heat the tobacco instead of burning it, providing a cleaner nicotine-delivery system. “The agency determined that authorizing these products for the U.S. market is appropriate for the protection of the public health because, among several key considerations, the products produce fewer or lower levels of some toxins than combustible cigarettes,” the FDA admitted.
This is an astounding and surprising move by the FDA. However, there is still the elephant in the room. While the IQOS approval is undoubtedly a step in the right direction for the post-Gottlieb regulatory environment, the premarket approval process is still dangerously flawed and inefficient.
When the Obama-era Tobacco Control Act of 2009 granted the FDA the power to regulate all nicotine-containing products under the deeming provisions, the law additionally encouraged the implementation of a regulatory framework that prohibits new and modified products without agency approval. Premarket approval regulations, as promulgated by FDA guidance, cover every aspect of a tobacco product or deemed product. From the risk the product poses to health to the design of the label, a PMTA covers virtually every aspect of a product’s configuration.
According to a recently published position paper titled, “The Public Health Rationale for Recommended Restrictions on New Tobacco Product Labeling, Advertising, Marketing and Promotion,” the FDA justifies a broad regulatory query as a process that is vital to protecting not only general public health but also the country’s youth.
“Given the level of evidence indicating the direct and powerful impact of tobacco marketing on youth
tobacco use, and FDA’s statutory mandate to protect young people from the dangers of tobacco use, it
is both reasonable and critical for firms to submit planned labeling, advertising, marketing, and
promotional materials and plans for new tobacco products that are seeking or have received premarket authorization, and for FDA to place restrictions on the marketing of such products,” the agency’s position paper concludes.
While this justification is admirable, and many in the industry are employing self-regulatory measures and industry standards for marketing, product labeling, transparency as the FDA wants, the structure of the PMTA law still provides a case for government-supported market inefficiency.
PMTAs are designed to require a standard of substantial evidence that a current or new product was designed with relative risk. By consequence, the PMTA applications process requirements kick in and send product manufacturers and marketers down an expensive process.
Agency estimates put the cost of each PMTA at $300,000 per product application. Other calculations put the cost estimates into the millions. Timeframes for application reviews also average from 500 hours to 1,700 hours. At a minimum, that is about 63 days of review per product application. Applications for products that claim to offer modified-risk scenarios during use have yet to be approved despite overwhelming evidence suggesting a reduced-risk case.
However, in my opinion, the key reason why the PMTA regulation is still so inefficient is how it interacts with safety development in vapor products. For starters, consider the controversy surrounding the FDA’s block of safer e-cigarette products.
In October 2018, Joyetech released its eGo AiO to Canadian markets. This device is one of the very first to receive a safety certification that complies with Underwriters Laboratories’ (UL) 8139 standards for the manufacturing of electronic nicotine-delivery systems. UL 8139 is also a manufacturing standard that was not borne from a government agency; rather, UL coordinated with members of the industry to create a safer device.
PMTA rules prevent Joyetech from selling that product due to the process for approval. In an interview with NBC News around the release of the eGo AiO, Joyetech’s chief regulatory and compliance officer, Joshua Church said, “We’ve been frozen out of the U.S. market by the FDA, whose last concern is product innovation. So, we’re sitting here stuck in the water.” Given this design, the regulation is structured to prevent further inefficiencies when receiving a compliant status for a product.
PMTA rules also present several scenarios for concern when they conflict with the statutory mandate of other federal regulators. The Child Nicotine Poison Prevention Act (CNPPA) is a little-known product safety law that requires child-resistant packaging on liquid nicotine containers. The CNPPA is enforced and interpreted by the federal Consumer Product Safety Commission (CPSC) following the regulatory framework outlined in the Poison Packaging Prevention Act (PPPA). Since the CNPPA has gone into effect and the commission has promulgated rules, the requirements for liquid nicotine packaging have grown more stringent.
In the latest round of enforcement, CPSC leadership has begun interpreting the CNPPA requirements for packaging to include flow restrictors and provided guidance that mandate that all e-cigarette packages feature these new safety implementations. According to an analysis written on this issue by regulatory attorneys at Keller and Heckman LLP, this interpretation of rules could dramatically impact firms that are not compliant. “Companies with products that do not have both child-resistant closures and flow restrictors may be required to cease sales and initiate product recalls until their packaging is brought into full compliance,” the Keller and Heckman analysis indicates, additionally noting that changes to packaging may trigger the FDA’s PMTA requirements.
While the analysis was optimistic that the PMTA requirements would be waived to ensure product compliance with other areas of federal law, the FDA does not have the greatest track record of cooperating with the industry or its fellow regulators. Per a memorandum of understanding, the FDA and CPSC have intentions to work together in overlapping regulatory efforts. This, however, does not mean that the FDA will not attempt to add more requirements related to packaging configurations to put product manufacturers at higher levels of scrutiny during the PMTA process.
A remedy for many of the disputes outlined in this piece would be for the FDA to reinterpret the Tobacco Control Act to permit greater flexibility for the industry to voluntarily reach higher levels of safety. Existing rules are likely to stay the same as a part of the continued crusade to fight to a so-called youth vaping epidemic. If this holds, the only remedy would be a legislative fix that could come at a slower rate than amended agency guidance. Regardless, the PMTA still serves as an example of inefficient regulatory power that places industrial input last.
In debating the relative health risks of various nicotine products, one consideration trumps all others.
By Clive Bates
What is the best alternative to smoking cigarettes? Unless we are allowed the answer “not smoking cigarettes,” then sadly this is the wrong question. We are already seeing commentators and companies declaring they have the best product or being champions of vapor products, heated tobacco or snus—as though preferred product choice was like supporting a football team.
So, let’s be clear. There best alternative product to cigarettes is the one that works for a particular individual, at a particular time, in a certain setting, in a given jurisdiction. That will differ between people, and the same person will have different preferences at different times. There just isn’t a single best product.
The most important distinction from a health and public policy point of view is whether or not the nicotine product is combustible—i.e., whether the product is designed so that dried and cured tobacco is set on fire and the resulting smoke is inhaled. Almost everything else is incidental, a second- or third-order issue.
Choice and risk in the nicotine market
We are now seeing a spectacular expansion of choice in reduced-risk alternatives to smoking. Within the broad category of smoke-free products we can identify four subcategories (see figure). Within each of these four, there is rapidly advancing diversification driven by innovators, consumer demands and regulators.
Pure Nicotine
Tobacco
Heated Aerosol
Vapor products, e-cigarettes, tank systems,
e-hookah
Heated-tobacco products, hybrids
Unheated
Gums, lozenges, films, synthetic snus, NRTs
Smokeless tobacco, snus, snuff
These products represent a disruption in the tobacco and consumer nicotine marketplace. Even long-established products like snus are taking on a new role as awareness of the “Swedish experience” grows and the products are repackaged as “modified-risk.” These products are quite different from each other but, in my view, we should treat these smoke-free products in more or less the same way for policy, fiscal and communications purposes—as a broad noncombustible category of consumer alternatives to smoking.
There is nothing inherently superior in health terms about nontobacco products such as e-cigarettes compared with tobacco products such smokeless tobacco. Some appraisals, for example, Nutt et al, 2014, have suggested that e-cigarette use would be safer than smokeless tobacco use. But why? Smokeless tobacco does not involve lung exposure, but vaping does—couldn’t that create different risks than those posed by smokeless products? I’ll guess it is because the authors instinctively ranked any tobacco product as being inherently more dangerous than any nontobacco product because of some hunch about the “dirtiness” of tobacco itself. But there is no scientific basis for that.
The aerosol generated by heated-tobacco products may be more chemically complex than typical e-cigarettes—and potentially more hazardous. But is this difference a material concern for policymakers? I think it should make little difference. Heating hardly matters as long as there is no burning—that is, as long as the temperature of the tobacco stays safely below 350 degrees Celsius, the temperature at which combustion occurs. What matters is that the products are all much safer than smoking—the differences between the various smoke-free products matter much less than the difference between smoked and smoke-free products. Imagine there was a scale of harm ranging from 1 to 100, with combustible cigarettes being 100. Suppose noncombustible products are in the range of harms from 1 to 5. The relative difference between smoke-free products could be a factor of five—a large range—but in practice this is in a tiny absolute range at the extreme end of a spectrum of risks that includes smoking.
Some may object that, for public health reasons, we should concentrate on whatever noncombustible products is the least harmful and propose that as the preferred alternative to smoking. Why have any additional risk if it is unnecessary? While that logic is superficially attractive, it would not in practice reflect the public health optimum. To put it bluntly, the perfectly safe product that no one wants to use is of little value from a public health point of view. This is the reason why pharmaceutical nicotine products have not been a conspicuous consumer success, even though some are licensed for continued use for nicotine maintenance. For an alternative to smoking to succeed in public health terms, there has to be both substantially lower risk and people have to want to use it instead of smoking. For minor absolute differences in risk, then it will be worth making trade-off to widen the appeal.
Appeal and product diversity
This brings us to the fundamental point about tobacco harm reduction: appeal matters. And consumer appeal is what the consumer decides is appealing. For some, a product that is as close as possible to their smoking experience could be their ideal choice—and so they may choose a heated-tobacco product. Others may be trying to distance themselves from their life as a tobacco consumer and will welcome a fruit-flavored vapor product. For some nicotine users, the discreet use of a nontobacco oral product might be useful when smoking or vaping is inappropriate. In some jurisdictions, high taxes or regulations may shape consumer preferences, for example by making e-cigarettes more affordable than heated-tobacco products. For some, trying new flavors, products and techniques may be part of the experience, and industry innovators, if permitted, will find endless ways to cater to curiosity.
These consumer preferences may also change in response to marketing, to new studies and media stories, or through advice from other users or vape shops. Preferences are shaped by the environment as well as the consumer. What users find appealing may also change with the time of day or with the progress of a journey from smoking to being smoke-free lasting months or years. Nothing is fixed; product and brand loyalty is fluid.
How should all these diverse preferences be met? From a public health perspective, what each company does is less important than how the market as a whole presents diverse product choices to the consumer. We need a market that provides a wide range of attractive products, with a rapid pace of innovation and responsiveness to evolving consumer tastes. The shape of that market will depend in large part on regulation.
Regulation to support a diverse marketplace
The main threat to consumer choice in the smoke-free market is excessive and disproportionate regulation. The system defined under the U.S. Tobacco Control Act and administered by the U.S. Food and Drug Administration is a case in point. The premarket tobacco product application (PMTA) process is extremely burdensome, very slow and highly opaque. There are few firms that have the resources and capabilities to clamber over these extraordinarily high regulatory barriers to entry. The likely result will be extreme market concentration, dominated by large companies with the means to cross-subsidize their reduced-risk products from ongoing cigarette sales. There will be relatively few products, and these will be simple designs that can be more easily evaluated. The market will shift toward products that appeal to regulators rather than to consumers.
The challenge is to create a smoke-free marketplace that is shaped more like the beer market. That means a few super-brewers like Anheuser-Busch InBev with global brands, but with a range of medium-sized national and regional breweries, and a long tail of microbreweries making exotic beers catering for every imaginable taste. To shape the reduced-risk consumer nicotine market this way demands “risk-proportionate” regulation (see “The Principle of Proportionality,” Tobacco Reporter, December 2018) in which the regulatory burdens, controls, and taxation reflect the risk to the consumer. This would create the conditions for a flourishing smoke-free industry: low barriers to entry, a high degree of competition and a rapid pace of innovation.
Quantifying risk in a diverse market
If consumers have more choice but less risk, we have new challenges in understanding and measuring the overall health impact of the tobacco market. For a thought experiment, imagine you have a choice between two patterns of consumption for a community: 20 percent smoking and no one vaping or 10 percent smoking and 30 percent vaping. In the latter case, there is twice the nicotine prevalence but half the smoking prevalence. Which would be the better outcome for public health? In my view, the option with lower smoking prevalence is by far the better public health outcome, even though there are twice as many users.
We need a more nuanced approach to characterizing the overall impact of the tobacco market—something better than smoking or tobacco-use prevalence. In its response to a consultation on “healthy people” indicators in the United States, the National Tobacco Reform Initiative advocates use of “harm weighting” in characterizing tobacco use, creating an index of tobacco use that takes account of the differences in risk between different products. This would help to focus minds on the real public health problem: that problem is combustion and smoke.
“More Choice, Less Risk” is the theme for the 2019 Global Tobacco & Nicotine Forum (GTNF), to be held Sept. 24-26 in Washington, D.C. Visit www.gtnf.org for details.
Clive Bates is the director of Counterfactual Consulting and the former director of Action on Smoking and Health (U.K.).
With no meaningful history of traditional tobacco control, Malawi may be more open than other countries to the concept of harm reduction.
By George Gay
Malawi has a tobacco control commission but makes no interventions to control tobacco product consumption. There is, however, no anomaly here, as professor Gerry Stimson, a director of Knowledge Action Change (KAC), an organization that promotes health through harm reduction strategies, pointed out during an interview in London in April. This state of affairs merely reflects a tension within the tobacco fabric of Malawi. The Tobacco Control Commission is charged only with overseeing the leaf tobacco production industry—an industry so important to the economic welfare of the country that there is a reluctance on the part of the government to engage also in consumption-control activities.
Freshly returned from a visit to Malawi, Stimson related how tobacco packs in the country carried no health warnings, how the country imposed no age restrictions on tobacco product purchases and how taxation was not used as a vehicle for reducing consumption. Malawi was not party to the World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) and employed none of the WHO’s MPOWER measures intended to assist in country-level implementation of interventions to reduce demand for tobacco.
Such reluctance to rigorously confront one of the greatest health issues of our time will be seen by some as concerning, but Stimson clearly senses an opportunity. When he looks at Malawi, he sees a country that, without a history of narrowly focused tobacco-consumption interventions, is perhaps open to ideas about tobacco harm reduction (THR).
KAC’s directors, Stimson and Paddy Costall, have been active in harm reduction for more than 40 years and, more recently, specifically in THR. They have helped stage the annual Global Forum on Nicotine (GNF) in Warsaw, Poland, since 2014. More recently, using funding from the Foundation for a Smoke-Free World (FSFW), KAC has introduced THR scholarships and launched the Global State of Tobacco Harm Reduction 2018 report.
That report, which was written by Harry Shapiro and launched last year in London, is currently the subject of an international roadshow, also funded by the FSFW, that has so far seen it taken to Australia, Kenya and Malawi, not all of which are necessarily the first countries that would come to mind when planning such a trip. In fact, Stimson admitted that, not long ago, he considered Africa to be off the map in respect of THR. But now, he said, there was a lot of interest and a lot of activity, and some “rising stars” among the people there. Malawi, for instance, was included on the roadshow schedule partly because two of KAC’s THR scholars based there, Chimwemwe Ngoma, who runs the campaigning organization, THR Malawi, and social scientist, Wilfred Jekete, had said they wanted to organize a THR meeting for government officials and others.
Open to ideas
That meeting, described by Stimson as “very interesting,” attracted more than 100 people representing health education and AIDS organizations, universities, nongovernmental organizations (NGOs), farming interests and tobacco community development bodies, as well as and the government departments of agriculture, health and trade, a lineup that seems to support Stimson’s contention that the country could be open to fresh ideas concerning the control of tobacco consumption.
But first there would need to be a shift in thinking away from the idea that acting against tobacco consumption locally could hurt the “health of the tobacco economy,” a shift that has been made successfully in other tobacco exporting countries, even in countries where, unlike Malawi, consumption is mainly of locally manufactured products.
Certainly, the argument that Stimson and his team presented was that the government could concern itself with the health of smokers without what it did affecting the health of the tobacco economy, because consumption of domestic tobacco was minimal. And the prospects in Malawi were good, Stimson said, because the government could develop an approach to tobacco consumption from what was almost a blank slate. It could look at consumption control from a THR approach in which it was concerned about health but was not working only with the rather heavy-handed tobacco control components of MPOWER. This just couldn’t be done in other countries, added Stimson, who made the point that the guest of honor at the meeting was the head of the country’s health service.
To a certain extent, getting across the idea of harm reduction means pushing at an open door because Malawi has a history of dealing with the effects of AIDS. In fact, the joint host of the meeting was JournAIDS, an organization that was originally set up by journalists around the fight against AIDS but that now deals with any number of health and social welfare issues. So it is possible that relaying messages about safer alternatives to smoking or quitting smoking could piggyback on health outreach structures that are already well-developed in Malawi in respect of AIDS, tuberculosis and malaria. Interestingly, there is in place a campaign aimed at raising awareness about the toxicants in smoke—but in this case the focus is on smoke from the open fires used during cooking.
However, there is one major problem with trying to introduce the idea of THR. Despite the wealth of the tobacco industry and the fact that Malawi has long been a major “stakeholder” in that industry, the country is economically constrained and many of its people are financially poor, so they could not afford to replace combustible cigarettes with, say, vapor products or Swedish-style snus. This means that THR would have to be based on alternative, acceptable, noncombustible products that could be produced in the country.
Campaigning for alternatives
Meanwhile, the roadshow in Kenya was scheduled to coincide with the launch by Joseph Magero of a pan-African THR network called the Campaign for Safer Alternatives (CASA), which has members also in other African countries, including the Democratic Republic of Congo, Malawi, Nigeria and Uganda. It included people working in slums, on AIDS and on drugs harm reduction, as well as those supportive of THR. It included, too, representatives of religious organizations, which are important operators in Kenya in the field of youth outreach.
Stimson described the situation in Kenya as fundamentally different to that in Malawi because in Kenya there was a strong alignment of anti-tobacco organizations that were part of the Framework Convention Alliance, which were strong supporters of the FCTC and for whom THR was seen as a threat. “It is a different, difficult situation,” he added, “but an interesting one because there are NGOs that have been working on harm reduction issues and that do get tobacco harm reduction as an idea. And this pan-African organization looks like it might have some traction.”
So, all in all, the Africa leg of the roadshow was a success? Well, said Stimson, the main aims of the roadshow had been to raise awareness about THR as a way to help people shift away from tobacco smoking and to strengthen the capacity of local people to promote THR. As an outsider, KAC could not do that, but it could help, nudge, support and enthuse local people, and it could provide them with the international contacts to enable them to put harm reduction and THR higher up the agenda. KAC was involved in a process of creating a conducive environment for harm reduction. It was a long process, and it was necessary to take every opportunity that presented itself. “I’m particularly enthused by the energy among the THR advocates in Malawi, and I’m particularly enthused by this new organization CASA,” he said. “You never expect things to change massively overnight, but everything seems to be pushing along the road towards harm reduction.”
Money well spent
As can be seen, Stimson is serious about the THR course he has set out on, but, having worked in harm reduction for so long, he is nothing if not a realist, and his answers are regularly punctuated with laughter as he recounts some of the obstacles that litter his path. One such is the reaction to KAC using FSFW money, which originally came from Philip Morris International (PMI) but over which PMI has no control and which cannot be returned to PMI. KAC had taken a risk accepting that money and had received a lot of flak for doing so, Stimson admitted, before going on to say, “… but … I would like to see it spent for the reason the money is there—to help shift people from smoking …. We think the money from the foundation can be well-spent.”
KAC had two Foundation-supported projects, Stimson said. One concerned the Global State of Tobacco Harm Reduction report for which KAC had made a grant application that was accepted and in respect of which there had been “absolutely no interference whatsoever from signing the contract to publishing the report. I have never experienced a donor who has been so hands-off,” he added.
And it was a similar story with its scholarships, which are funded by the Foundation but whose role is totally hands-off. “In my view,” said Stimson, “the ethical issue is no longer that PMI funded the foundation, but, given that the foundation has the money, it would be unethical not to spend it on the purposes for which it is intended.”
The Global State of Tobacco Harm Reduction 2018 report, now available in Mandarin as well as English, has been well-received, attracting a significant number of downloads for both it and the executive summary, which has been translated into a dozen languages. And, with what is now the assurance of a five-year FSFW funding agreement, the report is an ongoing project. Already since its launch, it has seen the addition of country profiles and a new tool that allows country comparisons to be made. And the latest project is adding an index that will measure how favorable governments are toward THR.
KAC has obtained a five-year funding agreement also for its scholarship program, which is run by Kevin Malloy and about which Stimson is “very excited.” The scholarships are designed to introduce and support people new to the field—to help build a new generation of people interested in research and communicating THR.
The program is nearing the end of its first year, during which it supported 15 scholars who initially were provided with a training program built around the 2018 GFN conference and who each received $7,500 to work, with the aid of a mentor, on an agreed project.
This year, the program, which attracted 50 applications, is being expanded and will see 20 scholars, 10 of them from Africa, each receive $10,000, and six who graduated with the first cohort receive $25,000 under an enhanced scholarship scheme. One of the enhanced scholars will be Malawi-based Jekete, who will be in charge of a program aimed at introducing stop-smoking and THR messages into other health organizations.
The fact that half of this year’s scholars will be from Africa was described by Stimson as “extraordinary.” Two years ago, he said, outside of South Africa, very little was happening in Africa in respect of THR.
The new EU Single-Use Plastics Directive requires cigarette manufacturers to assume greater responsibility for the environmental impact of their products.
By Stefanie Rossel
During a recent holiday, I had plenty of opportunity to watch the phenomenon: smokers discarding their cigarette butts on the ski slope or throwing them out of car windows while they were stuck in a traffic jam on the motorway. Butt littering is a bad habit, and it’s a common one as well. Studies quoted by the Truth Initiative, a U.S. not-for-profit tobacco control organization, found that 75 percent of smokers dispose of their cigarettes in the environment. Smokers are estimated to litter as many as 65 percent of their cigarette butts. Awareness continues to be low: In a survey by Keep America Beautiful, 77 percent of respondents said that they didn’t think of cigarette butts as litter.
The effect on the environment, however, is devastating. According to the Truth Initiative, cigarette butts are the most littered item on earth. Since the 1980s, they have consistently made up 30 percent to 40 percent of all items collected in annual international coastal and urban cleanups, amounting to an estimated 4.5 trillion cigarettes annually being discarded worldwide. For those who find this figure too abstract, in the southern part of Great Britain alone, cigarette butts discarded as street litter amount to 1,710 tons of waste per year—enough to fill seven Olympic-size swimming pools, according to calculations by British online vape shop Vapourcore.com.
Around 98 percent of cigarette filters are made of cellulose acetate (CA), a polymer that degrades in the environment very slowly. The time it takes a CA cigarette filter to disintegrate ranges from 18 months to 10 years, depending on the conditions of the environment in which it has been discarded. In addition, used cigarette filters are full of toxins, such as nicotine, formaldehyde, arsenic and ammonia, which can leach into the ground and harm living organisms that come into contact with them.
EU to combat plastics litter
Cigarette butts are also among the 10 single-use plastic products most often found on Europe’s beaches and in their seas. Together, these products constitute 70 percent of all marine litter items. In an effort to fight marine pollution, the European Commission in May 2018 proposed rules, the so-called Single-Use Plastics (SUP) Directive, which will ban single-use plastic items such as plates, cutlery, straws and cotton bud sticks made of plastic, as well as oxo-biodegradable plastics—i.e., plastics made of petroleum-based polymers that contain additives that accelerate their degradation when exposed to heat and/or light—food containers and expanded polystyrene cups beginning in 2021.
With regard to tobacco, the Members of the European Parliament (MEPs) proposed consumption reduction targets of tobacco product filters of 50 percent by 2025 and of 80 percent by 2030 in the original draft directive. Following several so-called Trilogue meetings—negotiations in the EU legislative process carried out within the framework of a conciliation committee—the Council of the EU and the European Parliament in December 2018 reached a provisional agreement that puts aside the MEPs’ proposal for consumption reduction targets.
Somewhat vaguely, the provisional agreement states that “the huge environmental impact caused by post-consumption waste of tobacco products with filters, discarded directly into the environment, needs to be reduced. Innovation and product development are expected to provide viable alternatives to filters containing plastic, and this development needs to be accelerated.” Through the introduction of extended producer responsibility (EPR), a reinforced application of the “polluter pays” principle, the provisional agreement seeks to further encourage innovation leading to the development of sustainable alternatives to tobacco product filters containing plastic. The SUP Directive was expected to be formally adopted in its current form at Tobacco Reporter’s press time in late March 2019.
“The directive will require producers to cover the costs of consumer awareness-raising measures and EPR schemes tackling the cleanup of litter and its subsequent transport and treatment, the costs of data gathering and reporting, and the costs of collection of waste of tobacco filters discarded in public collection systems,” explains Giovanni Carucci, vice president of EU affairs at British American Tobacco (BAT). “The deadline for EU member states to set up EPR systems is [Jan. 5, 2023].”
In particular, the obligation for member states to implement EPR schemes for tobacco filters containing plastic by 2023 is a precedent, he points out. “As yet there is no available guidance for member states as to how such EPR schemes should be implemented. Apart from a few local schemes, this is something that has never been carried out on this scale before for filters as for the other affected products. At the same time, it’s important to make sure the resulting schemes are efficient and effective and avoid unnecessary complexity.” He adds: “We believe the solution to this will be dialogue and cooperation including other affected industries, and we are open to collaborating and sharing information and expertise about our products to find the best way forward.”
Educating smokers
BAT agrees that companies should minimize their environmental impact and is committed to reducing its environmental impact across the supply chain and operations, according to Carucci. Before the SUP Directive, BAT had long been engaged in diverse projects and initiatives to prevent consumers from littering cigarette butts. “We believe consumer awareness is absolutely critical to solving the problem of butt littering, so we focused on creative projects designed to reach adult smokers,” says Carucci. “For example, in Belgium we worked together with the public authorities to contribute to a voluntary fund designed to support prevention awareness. In other countries, such as Austria, Germany, [the] Czech [Republic] and Switzerland, we distributed thousands of portable, sealable ashtrays as part of consumer education campaigns. These sorts of initiatives are also seen outside of the EU, for example in New Zealand where we contributed to a campaign that provides free purpose-designed cigarette butt bins to member councils and businesses and support to help councils and business associations educate smokers, making them more conscious of their littering and highlighting alternatives. These are just a few examples of the kinds of initiatives which we believe help mitigate the impact of our products.”
In the EU, cigarette manufacturers will have to go one step further: The SUP Directive mandates that, by the second quarter of 2021, tobacco companies put labeling on cigarette packs informing about the negative impacts of cigarettes with plastic filters thrown in the street. The labeling aspects of the proposal need to be in line with already existing tobacco labeling requirements stipulated by the revised Tobacco Products Directive (TPD2). Manufacturers are keen that regulators ensure there is no conflict with existing rules in the TPD2. “The Single-Use Plastics Directive states in Article 7(3) that the provisions of that article concerning tobacco products are in addition to those laid down in TPD2. Although the final compromise text of this legislation was published in January, we are still awaiting further details on the exact requirements on labeling. This will come in the form of secondary legislation—an implementing act—which could take some time to materialize. Until then, we can’t anticipate what such a conflict might look like. Therefore, we encourage legislators to consider the current design of products so that manufacturers can best apply them in a manner that does not conflict with existing legislation.”
For cigarette manufacturers, the cost involved from the measures mandated by the new directive remain unpredictable at this point. “Until secondary legislation materializes, it is not possible to know what additional costs this will add,” says Carucci. “However, we hope that any related costs will be efficient and proportionate.”
Searching for alternatives
While raising awareness among consumers certainly is a challenge, finding the innovative, environmentally friendly alternative to CA cigarette filters as stipulated by the directive might be an even tougher nut to crack. And it’s not just the filter material alone. Carucci says that his company’s current research shows that some constituents of its filters, such as CA derived from wood pulp, can degrade over a month to a three-year time period. “However, for other constituents in our filters, for example polymers or glues, research is inconclusive and requires further testing.”
Filters are an important part of the cigarette because they help comply with legally mandated maximum emission levels of tar, nicotine and carbon monoxide set out by the TPD2, Carucci emphasizes. “This is an essential quality to maintain when considering whether there are alternative materials that could serve the same purpose while taking environmental factors more closely into account,” he says. “At present, there are no alternatives that have been developed that will meet prescribed emission standards in various jurisdictions, while not increasing consumer exposure to certain other priority toxicants. Just to give one example, we’ve partnered with manufacturers developing these types of materials, as in 2014 when we partnered with Green Butts to evaluate some of their materials as potential filter materials. However, when we measured the smoke toxicants of the resulting filters compared to a control product, the majority of toxicants were higher than a cigarette with a standard filter. That’s why cellulose acetate remains, for the moment, as the benchmark. However, we will certainly keep up our efforts to research new materials, and we are open to new partnerships that could offer a solution.”
Solutions in the pipeline
Innovation in the filter and filter tow sectors offers some hope. With consumers becoming increasingly environmentally conscious, manufacturers of cigarette filters and filter tow have been developing alternatives with better biodegradability than the commonly used CA filter. Many of them have long been successfully used in cigarette products.
“Ever since I joined the industry in 2003, we have been running projects, both internally and with customers, to identify more biodegradable alternatives to cellulose acetate tow,” says Patrick Meredith, strategy and business development director at Essentra, a U.K. solutions provider for special filters and scientific services. “Some of the products introduced as a result of this work, such as our own Infused and BiTech filters, do bring performance closer to that of cellulose acetate filters. These may not provide identical performance to cellulose acetate over the full range of filter parameters—e.g., filtration, firmness, hot collapse, sensory and visual appearance—but they can certainly provide a base from which to develop solutions to meet any legislation that is enacted.”
Essentra has a range of solutions in its portfolio, including the Ochre filter, which is manufactured from unbleached paper, uses no chemical adhesives to bond the fibers and degrades three times faster than industry standard CA filters. At the same time, it retains higher levels of tar and nicotine compared to mono-acetate filters while it can provide a closer taste to acetate when the company’s Infused technology is applied, according to Essentra.
Next to “white” dual rod products with enhanced decomposition abilities, Essentra’s range also contains the BiTech filter, a single-segment filter that combines acetate tow with paper or other nonwoven materials and provides better filtration efficiency and greater degradability than a standard mono-acetate filter. Dependent on the raw materials selected, it also features better degradability than commonly used filters, according to the company.
“The latter two products incorporate a combination of cellulose acetate and paper, so adjusting the particular materials and their ratios should allow increased degradability to be achieved,” says Meredith. “We also have our Infused product whereby a liquid additive is applied to a paper filter, i.e., the Ochre filter, to bring the taste closer to that of a cellulose acetate filter.”
Essentra’s most recent innovation in terms of biodegradability is a hemp filter. “The hemp crop used to produce the hemp fiber source is grown without pesticides and irrigation for both seed and straw, which ensures economic stability and sustainability,” says Meredith.
Since 2014, the company also has a plugwrap material on offer that disperses in water at least three times faster than standard materials. “We have worked with a number of customers incorporating this plugwrap into our filter rods,” Meredith explains. “The plugwrap gives us an excellent tool to incorporate into the filter as part of a more degradable ‘total’ solution.”
Improving the availability of biodegradable filter solutions is essential, as regulation will not remain limited to the EU, Meredith notes. “Many other markets either have or are already looking to introduce legislation around degradability and littering of cigarette butts or are watching what happens in Europe with a view to adopting similar legislation. To meet these extended requirements [we] will need transformation across the entire industry.”
Best of both worlds
Progress has also been made with regard to the raw material used for filter production. In June 2018, Rhodia Acetow, a leading manufacturer of cellulose acetate tow, introduced DE-Tow, a fast biodegradable CA filter tow. “DE-Tow offers the tremendous advantage to meet the needs of environmental care regarding products that would be littered in nature; while traditional cellulose acetate in cigarette filters takes several years to decompose, DE-Tow biodegrades in less than six months,” says CEO Philippe Rosier. “Therefore, this innovation offers a global solution to the cigarette butt problem. We consider DE-Tow as a viable alternative to regular cigarette filter tow as referred to in the Single-Use Plastics Directive. Our product also contributes to the EU member states’ transition to a circular economy by generating a waste which, after collection, can be used for the production of biogas, composted, recycled or valorized energetically.”
Rhodia has been working on alternatives to current filters for about a decade. “Thanks to those efforts, with DE-Tow, we have been able to commercialize a biodegradable new generation of cellulose acetate filter tow,” says Rosier. “Therefore, the upcoming regulation is rather rewarding for our work and strengthens our determination to put the environment at the core of our R&D efforts.”
Upon its launch, the product’s biodegradability had already been certified in water, wastewater, and home and industrial compost. In December 2018, it received the certification of biodegradation in soil. Tests performed by external homologated laboratories have demonstrated the product’s biodegradability in marine water, according to Rhoda. “We expect official certification this year,” says Rosier.
DE-Tow can be used for the production of biodegradable cigarette filters through the same manufacturing process used for standard filters, Rosier explains. “There is no structural impact for cigarette manufacturers. With DE-Tow, cigarette manufacturers can replicate any type of filter for the simple reason that our product is made from cellulose acetate. Its main difference compared to regular cellulose acetate filter tow used for cigarette filters is its fast and certified biodegradability. It is also important to mention that DE-Tow is TiO2 free and that its classic filter tow performances, such as rod maker processability, smoke filtration, and filter design and quality, are equivalent to standard filter tow. DE-Tow is the filter material of choice not only for cigarettes but also for heat-not-burn sticks.”
Cellulose acetate has been used in the production of cigarette filters since the 1950s.
In Europe, more than 99 percent of the cigarettes currently sold are made with cellulose acetate-based filters, Rosier estimates. Rhodia Acetow is convinced that the development of sustainable alternatives to current cigarette filters has to leverage these key filtration performances of cellulose acetate. According to Rosier, customers are increasingly concerned about the environmental impact of tobacco products. “Consequently, we have been and are working closely with many cigarette manufacturers to develop, test and qualify innovative solutions respectful of the environment, such as DE-Tow. The first cigarettes with DE-Tow are now launched on the market. This synergy between our companies will be successful and meet both market expectations and environmental needs.”
Mozambique, Malawi and Zimbabwe pick up the pieces after one of the worst weather-related disasters in southern Africa.
By George Gay
Although, in the main, tobacco production was not directly affected by tropical cyclone Idai when it struck Malawi, Mozambique and Zimbabwe in the middle of March, most major tobacco companies with connections to these countries have rallied around them with cash donations and other forms of support. This is as it should be. These countries are important tobacco industry stakeholders and their fragile economies have been hit hard by the devastation that followed in the wake of Idai.
But while such support is important, especially in the short term, it is vital for the long-term good of these countries that everyday life resumes as quickly as possible so that, even if the wheels of business and industry falter, they keep turning, and they are seen from the outside to be turning. And this is not always the picture painted by news stories and social media, which, no doubt with the best of intentions, tend to focus on the suffering that is occurring. And let’s be in no doubt: The suffering, which has included more than 1,000 deaths, has been huge. The United Nations reportedly described Idai as “one of the worst weather-related disasters in Africa” and other agencies rated it as one of the worst in the Southern Hemisphere. The storm was said to have caused extensive damage and devastated the lives of more than 2.6 million people across Mozambique, Malawi and Zimbabwe. Flood waters destroyed homes, hospitals, schools, farms and agricultural land. Roads were damaged, and bridges washed away, leaving countless people isolated in difficult-to-reach areas.
So for those of us not there, relying on news reports, it is easy to imagine that Beira, Mozambique, where Idai made landfall during the early morning hours of March 15, is out of action—underwater. In fact, one company Tobacco Reporter spoke with suggested that the biggest impact of the tropical cyclone to the tobacco business would be felt in accessing the port of Beira, through which a considerable amount of African leaf is transported. Alternative routes and ports were being sourced, it added.
But the word from Beira was, in respect of tobacco shipping at least, that the port was “open for business.” Guy Harvey, the CEO of the Transcom Sharaf Group, told me during a telephone call on April 10 that while his business had suffered “a few blows,” it would come out of the cyclone stronger than it went in and better equipped to deal with any extreme weather events in the future. The company had put a lot of time and investment into Beira, he said, building it up to handle tobacco exports. Yes, there had been damage, but then, more than ever, was the time when the business need everyone’s support. At the time of our conversation, the port was operating and the infrastructure was there, “so it’s business as usual,” he added.
Harvey does not, however, make light of what happened. “We were expecting a storm with winds of 150 km perhr or so, and we prepared as best we could, but by the time it hit it had intensified, and we experienced winds of more than 200 km per hr,” he said. “Not much infrastructure is designed to withstand wind speeds of that magnitude. So, in Beira, there has been significant damage, though mainly due to the winds rather than the rain or flooding. The flooding that everyone has been seeing on TV was between 40 km and 100 km outside Beira.”
Unsurprisingly, with winds of such ferocity, it was roofing that bore the brunt of the damage. When the cyclone hit, Transcom was 95 percent of the way to completing its new 20,000-square-meter tobacco storage warehouse, but it lost 80 percent of the roofing on the new facility as a result of the storm and also suffered damage to the roofs of its existing warehouses. However, the structures of both the existing and new warehouses were undamaged, as was the general infrastructure of the facility.
While it seems inappropriate to speak of luck in respect of Idai, there is no doubt that Transcom was fortunate in two major ways. Because it had not finished its new facility before the storm hit, its building contractors and the machines used to extrude steel roofing sheets from coils were still on-site. It was also able quickly to order new steel from South Africa, so Harvey was expecting to start re-roofing within seven to 10 days of April 10 and to be back on track within six weeks.
This timing is important because Transcom expects to start receiving tobacco for the 2019 season starting at the end of May or the beginning of June. And this points to the other way in which Transcom was fortunate: the fact that the cyclone hit during the off-season. February/March is the tail end of the season because most customers want tobacco shipped by the end of the financial year. If the cyclone had hit in October/November—which is peak season—it would have been a different story.
Even in March, the company had more than 500 40-foot packed containers waiting for vessels in the port when the cyclone hit, as well as another 800 packed containers in its terminal. None of these containers nor the tobacco within them was damaged and it is a measure of the port of Beira’s efficiency that all of those containers had been shipped by the time I spoke with Harvey, who had nothing but praise for the port’s operators and government departments. “The port was operating three days after the cyclone,” he said. “I must say the port of Beira operator Cornelder de Moçambique have done an unbelievable job. Not only them, though, because the government departments have done a sterling job in restoring power, restoring water supplies and reopening the main road from Zimbabwe and Malawi.”
At the same time, Transcom has been doing what it can to help its 320 employees—all of whom survived the cyclone—restore some sort of normality to their lives. All of its employees, including Harvey, lost the roofs of their houses and, as a consequence, suffered wind and rain damage to everything inside. “We have been assisting our staff where we can with roof sheeting, advances and allowances,” said Harvey. “We have arranged for them to be vaccinated against cholera, we are supplying the necessary foods that are in short supply at the moment, and we are supplying clean water and water purification tablets that they can take home so their families don’t get sick.”
Helping out
Multinational tobacco companies also were pitching in. On April 3, Philip Morris International said in a note posted on its website that it would provide the Swiss Red Cross with $400,000 to support the relief efforts in Mozambique. The company, which does not have any operations in Mozambique but sources a “significant” amount of tobacco from the country, noted that 2 million people had been affected and that thousands were in immediate need of emergency shelter, food, water and medical assistance. Beyond this, it said, the funds would be used to support people’s livelihoods in the months ahead, as needs increase for those who have lost their crops and property.
Imperial Brands told TR that it recognized how significant the impact had been on local communities. “Imperial has made a contribution of $100,000 through our suppliers to assist in relief efforts in Malawi, Mozambique and Zimbabwe,” the company said in a statement. “This contribution will be coordinated by our suppliers aligned with the aid they are giving and coordinating, mostly in the form of food, water, blankets and cooking utensils.”
Meanwhile, a British American Tobacco (BAT) spokesperson responded by saying that, as a way to support the relief efforts, BAT Southern African Area had pledged to donate the equivalent of £25,000 ($32,246) to charity organizations in the three affected countries. “Employees are also collecting clothes and other products to support the victims, which will be delivered next week,” BAT said in an email reply on April 1.
Fries Vanneste, managing director at Japan Tobacco Internation (JTI) Leaf Malawi, responded by saying JTI Malawi and its employees would be supporting contracted growers and communities affected by the floods in the coming weeks, particularly in the most impacted areas in the southern part of the country (Chikwawa). “We will join our efforts to those of other members of the Tobacco Processors Association (TPA) so that farming communities can purchase basic materials, get access to food and [a] clean water supply and rapidly resume a normal life,” Vanneste said. And just as TR was preparing to go to press, a JTI spokesperson confirmed that the JTI Foundation would provide emergency relief to victims of Idai in Malawi and Mozambique, though she was not in a position to give details.
Finally, a spokesperson for the Pyxus International and Alliance One International said donations were being collected from employees, customers and other partners worldwide, and that these would be contributed to organizations on the ground providing support to those in need of food, water, medical assistance and shelter.
Remarkably, there seemed to have been little impact on the tobacco crops of Malawi and Mozambique. Early reports indicated that Zimbabwe had suffered “significant” losses, but these were later dismissed. In fact, one report suggested the cyclone might have had a positive effect on the Zimbabwe crop because it brought much-needed rain to the Manicaland Province. Certainly, the threat of the effects of Idai to security of supply seemed negligible.
But I’ll leave the last positive message to Harvey. “Once you get over the physical and mental trauma of the whole thing, you resign yourself to the fact that you have to get things done,” he said. “I think it really focuses everyone, not only from a business perspective but from a personal perspective. I think everyone starts to better appreciate what they’ve got—what’s important and what’s not.”
George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
The FDA commissioner’s surprise departure is unlikely to provide much relief to the beleaguered tobacco and vapor industries.
By Patrick Basham
It will never be on a par with 9/11, Neil Armstrong’s moonwalk or JFK’s assassination, but within tobacco and vaping circles the question lately was, “Where were you when Gottlieb resigned?”
I was in London evangelizing to a Women in Tobacco event about bitcoin’s role in female empowerment. At one point during my talk, an otherwise attentive audience suddenly became fixated on their smartphones. Seeking to ease my discomfort, a compassionate lady exclaimed, “We’ve all just seen Gottlieb quit!”
My performance anxiety was fleeting, but the tobacco and vapor industries’ collective anxiety is enduring, and with good reason. Despite U.S. Food and Drug Administration (FDA) Commissioner Scott Gottlieb’s surprise resignation, the dark regulatory skies overshadowing the marketplace are unlikely to brighten.
An FDA deputy commissioner under former President George W. Bush, Gottlieb took office as an experienced Washington hand familiar with the FDA’s scientific and regulatory infrastructure; he was comfortable navigating the political minefield that is federal policymaking.
In May 2017, Commissioner Gottlieb began by telling manufacturers he wanted to reduce the harm of combustible cigarettes and bring to market e-cigarettes and other reduced-harm products. He appreciated that, for harm reduction to be successful, adult smokers need access to smoke-free products that deliver nicotine but with significantly lower levels of toxicants than cigarettes. That summer, Gottlieb allowed e-cigarette companies to keep their vapor devices and nicotine pods on the market for an extra four years before they had to prove their products benefit public health.
Yet, he spent the next 20 months cracking down on cigarette companies and aggressively attempting to arrest vaping’s growing popularity. As a top-down, command-and-control regulator swimming against a deregulatory tide, Gottlieb was an outlier in the Trump administration’s senior ranks.
In that vein, he asserted that teen vaping is an “epidemic.” In modern political parlance, “epidemic” is employed to suggest, with only the merest hint of statistical support, that something must be done to reduce consumption of product “X” or to solve alleged public health problem “Y.” In this case, the vapor marketplace became subject to draconian controls to prevent adolescents from gaining access to these relatively harmless products.
Professor of medicine Brad Rodu questions the magnitude of teen vaping. He writes: “The [U.S.] Centers for Disease Control and Prevention’s [CDC] 2017 National Youth Tobacco Survey shows that only about 12 percent of American high school students used e-cigarettes in the past month. Even if the CDC’s observation … is correct about a vaping increase in 2018, it doesn’t confirm an epidemic. Nearly 70 percent of the students who vape—but do not smoke—used e-cigarettes five days or less during that 30-day period, a pattern called ‘party’ or ‘weekend’ vaping, not regular, daily consumption.”
Nonetheless, Gottlieb’s FDA announced significant restrictions, which have yet to take effect, on the retail sale of flavored e-cigarettes. Consequently, Juul Labs, with 73 percent of domestic store-based e-cigarette sales, and other manufacturers of vapor products halted sales of some flavored e-cigarettes in brick-and-mortar retail outlets.
Convenience stores and gas stations will be effectively prohibited by the FDA from selling most flavored e-cigarettes. First proposed in November 2018, these measures will be introduced by this summer and are aimed at limiting access to the flavors most popular among adolescents. Only tobacco-, mint- and menthol-flavored e-cigarettes will be available for sale in these locations.
In another fillip to the illicit market, the FDA is prohibiting bulk online purchases of flavored vapor products. Furthermore, Gottlieb threatened to remove vapor products from the market entirely should the adolescent vaping “epidemic” not abate.
The crackdown on the retail market flies in the face of the fact that only a small minority of young vapers purchase e-cigarettes from brick-and-mortar locations; 86 percent purchase their e-cigarettes online or receive them from a friend or relative. The FDA’s own survey data, “The Population Assessment of Tobacco and Health Survey,” finds that less than 10 percent of teen e-cigarette users “bought them myself.”
Last November, the FDA also announced plans to ban menthol cigarettes, which constitute 35 percent to 40 percent of the U.S. market. Several years ago, the pro-regulation Obama administration consciously avoided this policy, as menthol cigarettes are disproportionately consumed by African Americans, the Democratic party’s most reliable voting bloc. Unconstrained by such electoral concerns, Gottlieb moved forward with this deeply misguided policy that would immediately create a thriving illicit trade in unregulated menthol cigarettes.
Gottlieb also threatened to limit the nicotine in cigarettes to nonaddictive levels, although the FDA arguably lacks the legal authority to do so. At Gottlieb’s urging, President Donald Trump’s latest budget proposal seeks to add a user fee to e-cigarettes to fund the enforcements of limits on flavored e-cigarettes. It is both revealing and dismaying that currently there are more pending legislative bills in Congress aimed at taxing e-cigarettes than increasing cigarette taxes.
Irresponsible
The most recent harm reduction research confirms Gottlieb’s irresponsibility in sacrificing the health of tens of millions of adult smokers at the altar of a fabricated youth epidemic. Professor John Newton of Public Health England has noted how clinical scientific experiments clearly indicate the stark contrast between the impacts of smoking combustible cigarettes and vaping. Globally, most public health experts consider vaping to be 95 percent safer than smoking.
A new study published in the New England Journal of Medicine finds people are almost twice as likely to succeed in quitting smoking if they use e-cigarettes than if they rely on licensed quitting aids, such as nicotine-replacement patches and gums. A revealing Juul Labs study found that smokers who used its popular USB drive-shaped vaporizer product over a five-day period experienced a nearly identical drop in biomarkers related to cancer compared to smokers who abstained from smoking during that period.
Philip Morris International’s new landmark study on e-cigarettes, conducted in collaboration with Altria Group, demonstrates that after six months, e-cigarette vapors with and without nicotine induce significantly lower biological responses associated with cardiovascular and pulmonary diseases than cigarette smoke.
Gottlieb also appears unaware of the law of unintended consequences. Government restrictions on e-cigarettes inadvertently increase combustible cigarette use among teens. A 2015 Yale University study found state-level bans on the sale of e-cigarettes to minors created a statistically significant increase in recent cigarette smoking rates among those aged 12 to 17.
What’s next?
Gottlieb denies he lost favor with the White House, insisting he resigned for personal reasons, namely the strain of commuting to Washington away from his Connecticut home and his wife and three young children. However, White House contacts tell me that several months ago they began to ask, “What has happened to Scott?” They pondered how, in a matter of mere months, their pro-vaping appointee became the nanny state’s poster boy?
They deduced that Gottlieb had suffered the same fate as many well-intentioned political appointees sitting atop departments and agencies throughout Washington, D.C. He was figuratively captured by the permanent institutional interests that dominate policy administration within government bureaucracies. Rather than open the FDA’s eyes on reduced-risk products, he morphed into a spokesman for the FDA’s blinkered statist outlook. A Trump advisor observes that Gottlieb “was swallowed by ‘the swamp.’”
What will happen to Gottlieb’s agenda? According to The Wall Street Journal, “Tobacco companies may have gotten a reprieve” as Gottlieb’s “departure calls into question some of the tough-on-tobacco proposals he championed.” While the affected industries hope a new commissioner will move the FDA in a more enlightened direction, they should not expect that outcome.
When asked if the vaping crackdown would continue after he leaves, Gottlieb said, “I’m very confident of that.” His confidence is well-founded. The FDA operates under the parental umbrella of the Department of Health and Human Services (HHS). HHS secretary Alex Azar was a strong supporter of Gottlieb’s draconian approach. Revealingly, Azar told a recent congressional hearing, “We are going to be carrying forward Dr. Gottlieb’s vision. His agenda is my agenda. My agenda is his agenda.”
At that same hearing, Azar named Norman Sharpless as acting FDA commissioner. A medical doctor and scientist with a respected academic track record, Sharpless is director of the National Cancer Institute, which falls under the purview of the National Institutes of Health. A close Gottlieb ally, and Gottlieb’s preferred successor, he shares Gottlieb’s diktat-driven approach to combating youth vaping.
As the administration settles upon Gottlieb’s replacement, Sharpless is in pole position. Yet, his transition from acting to permanent commissioner is not guaranteed. Another strong contender is Brett Giroir, who currently serves as assistant secretary at the HHS. He is Azar’s choice to succeed Gottlieb, having impressed as Azar’s senior adviser on the HHS’ anti-opioid campaign.
The forthcoming leadership change is likely to be a missed opportunity to reconsider the FDA’s fiat-based approach to e-cigarettes especially. If either Sharpless or Giroir are appointed, the FDA will keep its regulatory feet planted firmly on the necks of tobacco and vapor companies.
There is no reason for these companies to expect the regulatory environment to measurably improve. At best, legislative stasis on Capitol Hill, in tandem with the ebb and flow of the presidential and congressional campaigns, may slow the FDA’s regulatory momentum.
Patrick Basham directs the Democracy Institute (www.democracyinstitute.org) and authored the book, Butt Out! How Philip Morris Burned Ted Kennedy, the FDA & the Anti-tobacco Movement.
Contrary to its U.S. counterparts, Public Health England sees no evidence of a vaping epidemic.
By Marina A. Murphy
An independent report commissioned by Public Health England (PHE) reveals that the level of vaping among young people remains low in Britain, a finding that contrasts with reports from the U.S. suggesting that there has been a surge in e-cigarette use among teenagers there. The report also reveals, however, that vaping has plateaued among adults in the U.K. and says that more needs to be done to encourage smokers who want to quit smoking combustible cigarettes to try e-cigarettes.
Less than 2 percent of those in the U.K. under the age of 18 use e-cigarettes regularly, compared with reports of one in five teenagers regularly vaping in the U.S.
The PHE report, which was led by researchers from King’s College London, reveals, however, that “experimentation and use of e-cigarettes has been increasing steadily over time.” The number of children and teenagers in the U.K. trying vaping has doubled in five years, with around one in six children aged between 11 and 18 having tried e-cigarettes. A total of 15.9 percent in this age group tried vaping in 2018 compared to 8.1 percent in 2014.
The majority of those who vaped said they just wanted to give it a try. Only 1.7 percent of those under the age of 18 use e-cigarettes weekly or more, and the vast majority of those minors smoke combustible cigarettes as well. Among those who never smoked, only 0.2 percent use e-cigarettes regularly.
“While more young people are experimenting with e-cigarettes, the crucial point is that regular use remains low and is very low indeed among those who have never smoked,” said John Newton, health improvement director at PHE.
This contrasts with the U.S., where authorities have pronounced e-cigarette use by teenagers to be “epidemic.” In the U.S., the Juul brand claims some 70 percent of the e-cigarette market. But while the Juul is also available in other countries, including the U.K., there is a difference in that European law restricts the amount of nicotine in e-liquid. Nonetheless, Deborah Arnott, chief executive officer of Action on Smoking and Health (ASH) in the U.K., says that stakeholders need to remain vigilant. The 2019 ASH annual survey, which is about to start, will be asking about Juul.
Smoking, vaping, quitting …
The PHE report also reveals that while experimentation by teens has steadily increased, regular vaping has plateaued in adults. This is a problem, according to the authors, in so far as it may be negatively impacting quit rates.
“We could accelerate the decline in smoking if more smokers switched completely to vaping,” says Newton. “Recent new evidence clearly shows using an e-cigarette with stop-smoking support can double your chances of quitting. If you smoke, switching to vaping could save you years of ill health and even your life.”
PHE is well-known for having thrown its weight behind vaping, which it says is 95 percent less harmful than smoking. PHE recommends that smokers trying to quit should be offered devices like e-cigarettes.
This latest report says combining e-cigarettes with face-to-face support should be an option available to all smokers. It also calls for stop-smoking practitioners and health professionals supporting smokers to receive education and training in the use of e-cigarettes in attempts to quit.
“With just over a third of adult smokers having never tried an e-cigarette, there is a clear opportunity for more smokers to try a method which has helped many others to quit,” says Ann McNeill, professor of tobacco addiction at King’s College London and lead author of the report. “Smokers should be advised to stop smoking as soon as possible and explore all available options, including e-cigarettes.”
“With e-cigarettes currently used so rarely in services, it’s time for change,” adds Newton. “Every stop-smoking service must start talking much more about the potential of vaping to help smokers quit.”
The report is the first in a new set of three, commissioned by PHE under the government’s tobacco control plan for England. It looks specifically at the use of e-cigarettes rather than health impacts. Health impacts will be the subject of a future report.
This report was commissioned to summarize evidence that will underpin policy and regulation of e-cigarettes in England. It focuses on the latest evidence on prevalence and characteristics of e-cigarette use in young people and adults in England. The context for the report is that smoking remains the leading preventable cause of illness and premature death and is one of the largest causes of health inequalities. So, alternative nicotine-delivery systems, such as e-cigarettes, could play a major role in improving public health.
The FDA and Juul
In September 2018, the U.S. Food and Drug Administration (FDA) threatened to ban the Juul vapor device and four other leading e-cigarette products unless their makers took steps to prevent use by minors. In an attempt to curb teenage vaping, the FDA has also proposed a ban on most e-cigarette flavors.
Many public health experts think the FDA is overreacting. In a letter in November 2018 to FDA Commissioner Scott Gottlieb, who announced his upcoming resignation from the agency on March 5, several of these public health experts pointed out that the U.S. figures fail to distinguish between occasional and regular users, thereby potentially greatly overestimating the number of regular users. They also point out that most regular vapers are likely to be smokers and that vaping in youth should only be a concern to the extent that it may lead to smoking combustible cigarettes but that there is little evidence to suggest that this is the case.–M.M.