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Category: Around the Industry

  • 5th Circ. Backs FDA’s Block on Vape Marketing

    5th Circ. Backs FDA’s Block on Vape Marketing

    The U.S. Court of Appeals for the Fifth Circuit upheld the U.S. Food and Drug Administration’s denial of marketing applications for menthol-flavored e-cigarette products submitted by two vape manufacturers, ruling that the agency reasonably concluded the products’ potential benefits for adult smokers did not outweigh the risks of youth initiation. The decision affirms the FDA’s application of the “appropriate for the protection of public health” standard required under the Premarket Tobacco Product Application (PMTA) pathway.

    The ruling, against Triton Distribution and Vapetasia LLC, reinforces the FDA’s authority to reject flavored vaping products where applicants fail to provide sufficient evidence that the products offer a net public health benefit.

  • South Africa Advances Tobacco Bill, Negotiations Loom

    South Africa Advances Tobacco Bill, Negotiations Loom

    South Africa’s Portfolio Committee on Health approved the Tobacco Products and Electronic Delivery Systems Control Bill to proceed to the next stage, though MPs across parties stressed the need for significant amendments. The committee voted 10–1 in favor of continuing the legislative process, but lawmakers said the final law must better differentiate between combustible cigarettes and lower-risk nicotine products such as vapes.

    Chairperson Faith Muthambi said public submissions and scientific evidence supported a risk-based regulatory approach rather than treating all products equally. MPs also raised concerns over illicit trade, enforcement, plain packaging, advertising restrictions, and penalties. The bill would introduce indoor smoking bans, plain packaging, advertising prohibitions, and tighter controls on vaping products, but is expected to be heavily revised during clause-by-clause negotiations.

  • Maldives Debates Proposal to Halve Cigarette Import Duty

    Maldives Debates Proposal to Halve Cigarette Import Duty

    A proposal to cut the Maldives’ cigarette import duty from MVR 8 to MVR 4 ($0.52 to $0.26) per cigarette sparked heated debate in Parliament, highlighting divisions over the impact of tobacco taxation on public health and illicit trade. The government-backed bill would reverse a 2024 duty increase introduced after concerns that a vape ban could drive smokers toward cigarettes.

    Ruling PNC lawmakers defended the original tax hike as a public health measure, while opposition MDP members argued that higher duties have fueled cigarette smuggling and reduced customs revenues. Opposition lawmakers claimed the tax increase helped create a growing black market, with alleged state revenue losses reaching MVR 2 billion ($130 million). Supporters of the duty reduction also argued that previous tax increases failed to curb tobacco use and instead shifted demand toward illicit products.

  • AI Search Favors Family-Owned Premium Cigar Brands: Research

    AI Search Favors Family-Owned Premium Cigar Brands: Research

    Family-owned premium cigar manufacturers dominate recommendations generated by leading artificial intelligence search platforms, according to the newly released 2026 Cigar & Pipe AI Visibility Index from communications firm 5W. The study found that Padrón (11.5%) and Arturo Fuente (10.5%) topped the list with Davidoff (7.5%) a distant third, together accounting for nearly a third of the premium cigar brand citations across ChatGPT, Claude, Perplexity and Google AI Overviews. My Father Cigars (5.5%, Oliva (4.5%), Rocky Patel (4%), Drew Estate (3.6%), Perdomo (3.4%), Ashton (3%), and non-Cuban Cohiba (2.8% rounded out the top 10.  

    The report argues that AI systems disproportionately favor brands with strong family-ownership narratives, vertical integration and longstanding editorial recognition, particularly from Cigar Aficionado, whose rankings and retailer surveys are frequently cited in AI-generated responses. The study also found that U.S. restrictions on Cuban cigars create a structural advantage for non-Cuban versions of brands such as Cohiba, Montecristo, and Romeo y Julieta, which are more likely to be recommended in response to consumer queries. According to 5W, AI citation patterns increasingly mirror brand visibility and reputation in the premium cigar sector, making search prominence a growing competitive factor as consumers turn to AI platforms for product recommendations.

  • Australian Economist Calls to Eliminate Tobacco Excise

    Australian Economist Calls to Eliminate Tobacco Excise

    Prominent Australian economist and public policy expert Richard Holden called for the temporary elimination of Australia’s tobacco excise, arguing that only a dramatic tax reduction can effectively dismantle the country’s rapidly expanding illicit tobacco market. Holden, a professor at the University of New South Wales and columnist for the Australian Financial Review, said reducing excise rates incrementally would be insufficient and that taxes should be cut to zero for as long as necessary to make illegal tobacco sellers uncompetitive. He argued that enforcement efforts alone are unlikely to succeed given the scale of the illicit market and the limited resources available to police agencies, and that undercutting the illicit process was the best way to eliminate it.

    Holden’s comments come as new data from the Australian Bureau of Statistics estimated that about 80% of nicotine products consumed in Australia in 2025 were sourced from the illegal market, up from 12% in 2017. He noted that the tobacco excise on a single cigarette has risen from 26 cents ($0.18) to approximately A$1.53 ($1.09), adding more than A$30 ($21.30) in tax to a pack of 20 cigarettes. The proposal goes beyond recent calls by Australian politician Pauline Hanson to halve tobacco excise and freeze indexation, highlighting growing debate over whether Australia’s high-tax tobacco policy is contributing to the expansion of a black market estimated to be worth billions of dollars annually.

  • Ukraine Alleges Tobacco Company Hid $55M in Taxes

    Ukraine Alleges Tobacco Company Hid $55M in Taxes

    Ukrainian authorities have notified the former director of a tobacco manufacturing company of suspicion in connection with an alleged tax evasion scheme that prosecutors say deprived the state of more than UAH 2.3 billion ($55 million) in excise tax revenue. According to Prosecutor General Ruslan Kravchenko, company officials allegedly organized the production and sale of unaccounted tobacco products outside official tax and accounting records while presenting the activity as legitimate manufacturing.

    Investigators claim that more than 1,186 tons of tobacco raw materials were processed into cigarettes and sold without payment of excise duties, resulting in a substantial tax shortfall identified through tax audits and forensic economic examinations. Authorities further allege that company officials attempted to conceal the illegal use of raw materials by falsifying claims that the tobacco had been stolen. The former director has been charged under Article 212 of Ukraine’s Criminal Code for intentional tax evasion on an especially large scale, an offense that carries financial penalties, potential asset confiscation, and restrictions on holding certain positions. No company has been officially named in the filings; however, some in the Ukrainian media speculate that the company is Kremin Tabako.

  • Bangladesh Risks $328M From Cigarette Pricing Structure

    Bangladesh Risks $328M From Cigarette Pricing Structure

    Bangladesh could forgo more than Tk 4,000 crore ($328 million) in annual tobacco tax revenue in fiscal year 2026-27 because cigarette prices set in the proposed budget do not reflect actual retail market prices, according to the Power and Participation Research Center (PPRC). The think tank estimates that the government will lose approximately Tk 4,062 crore ($333 million) in revenue because low- and medium-tier cigarettes are sold at prices higher than the official minimum retail prices used for tax calculations.

    Under the proposed budget, the minimum retail price is set at Tk 62 ($0.50) per 10 sticks for low-tier cigarettes and Tk 92 ($0.75) for medium-tier products, while retailers commonly sell individual sticks at prices that translate to pack values of Tk 70 and Tk 100 ($0.57 and $0.81), respectively. Based on sales of 6,118 crore low- and medium-tier cigarette sticks in FY25, PPRC argues that the untaxed gap between official and actual prices represents a significant missed revenue opportunity.

    The organization said total tobacco tax collections have continued to rise, reaching about Tk 45,000 crore ($3.7 billion) in FY26, but contended that a substantial portion of price increases is being retained by tobacco companies rather than captured by the government through taxation. PPRC called for tobacco tax policies that better reflect market realities to strengthen revenue collection and public health outcomes.

  • Taiwan Estimates More Than 40,000 Teenagers Vape

    Taiwan Estimates More Than 40,000 Teenagers Vape

    Taiwan health authorities estimate that more than 40,000 teenagers nationwide use vaping products, prompting calls for stronger enforcement measures and potential amendments to existing tobacco control laws. According to the Health Promotion Administration (HPA), 3.7% of Taiwanese adolescents use e-cigarettes or vapes, including 2.1% of junior high school students and 5.1% of senior high school and vocational school students.

    Officials expressed particular concern over the growing use of vaping devices to consume illicit substances such as etomidate, an anesthetic linked to an increase in drug-impaired driving incidents. HPA Deputy Director-General Wei Hsi-lun said current legislation provides limited authority to regulate vape users and confiscate devices, leading the agency to consider legal changes that could strengthen enforcement powers and increase penalties for users and distributors.

  • South Korea Signals Cigarette Tax Hikes, Tougher Warnings

    South Korea Signals Cigarette Tax Hikes, Tougher Warnings

    South Korea is advancing a broader tobacco-control agenda that could include future cigarette tax increases alongside stricter packaging regulations. Discussion of raising cigarette prices has resurfaced after Health and Welfare Minister Jung Eun-kyeong said the government needs to review tobacco pricing policy as part of efforts to address smoking and emerging nicotine products, including e-cigarettes, flavored cigarettes, and synthetic nicotine products.

    Cigarette prices have remained unchanged at an average of 4,500 won ($2.93) per pack since a 2015 increase, despite consumer prices rising about 20% over the same period. The government’s Sixth National Health Promotion Comprehensive Plan for 2026-2030 includes a review of increasing the health promotion levy to bring cigarette prices closer to OECD averages, which exceeded 9,800 won ($6.37) per pack in 2023. While no specific tax proposal has been announced, some observers believe prices could eventually move toward the 10,000-won ($6.50) range. Separately, the Ministry of Health and Welfare has finalized a new set of cigarette pack health warnings that will take effect on Dec. 23, following a six-month transition period. The revised warnings will add kidney cancer to the list of smoking-related diseases highlighted on packs, update warning images for several health conditions, and replace existing messages with more direct language, including changing “road to lung cancer” to “the end of smoking is lung cancer.” The ministry also said it will continue evaluating additional measures aligned with international tobacco-control standards, including larger warning labels, broader product coverage and potential plain-packaging requirements.

  • Reason Alleges Calif. Health Manipulated Anti-Tobacco Agenda

    Reason Alleges Calif. Health Manipulated Anti-Tobacco Agenda

    A report published by Reason alleges that the California Department of Public Health worked closely with anti-tobacco advocacy groups and consultants to advance policies aimed at ending commercial tobacco sales in the state, raising questions about the boundary between public health education and political advocacy. The article centers on a 2025 study published in Tobacco Control that concluded local tobacco sales bans could be a viable tobacco-control strategy, despite being based on a limited sample of retailers in the affluent California communities of Beverly Hills and Manhattan Beach.

    Drawing on emails obtained through public records requests, Reason alleges that CDPH-funded contractors and agency employees collaborated on messaging campaigns supporting tobacco prohibition policies, shared confidential polling data with advocacy partners, helped design voter opinion surveys, and celebrated the adoption of local tobacco sales bans. The report highlights the state’s funding of “Endgame” initiatives intended to eliminate commercial tobacco sales and scrutinizes relationships between CDPH staff, consultants, academic researchers, and organizations such as the American Cancer Society Cancer Action Network. The article argues that these activities amount to taxpayer-funded advocacy for tobacco prohibition rather than neutral public health education, while also questioning the effectiveness of tobacco sales bans and citing concerns about illicit trade and lost tax revenue associated with restrictive tobacco policies. The allegations reflect Reason‘s broader criticism of California’s tobacco-control strategy and its pursuit of a long-term “tobacco endgame” agenda.