TobaccoReporter logo

Category: Around the Industry

  • Nasco Files to Have Claims Thrown Out of Hestia Lawsuit

    Nasco Files to Have Claims Thrown Out of Hestia Lawsuit

    Nasco Products LLC asked a federal judge in North Carolina to dismiss portions of a lawsuit filed by the owners of Hestia Tobacco, arguing that the complaint fails to clearly identify the contracts it allegedly interfered with or provide sufficient details to support claims of fraud. In the new filings, Nasco contends that the plaintiffs rely on vague allegations and have not specified which agreements were disrupted or how the company’s actions constituted fraudulent conduct.

    The lawsuit was filed in January by The Tobacco Company, which operates the Hestia Tobacco brand, against its former manufacturer, Nasco, in the U.S. District Court for the Middle District of North Carolina. Hestia alleges that Nasco breached their manufacturing and supply agreement by sharply increasing production prices and then encouraging retailers to remove Hestia products from store shelves, actions the company says harmed its sales and business relationships. The suit seeks monetary damages and was filed under federal diversity jurisdiction.

  • Pakistan Probes Theft of $900K of Cigarettes From FBR Warehouses

    Pakistan Probes Theft of $900K of Cigarettes From FBR Warehouses

    A Senate sub-committee in Pakistan called on relevant authorities to explain the theft of 2,828 cartons of cigarettes worth Rs250 million ($900,000) from Federal Board of Revenue (FBR) warehouses in Swabi and Mardan. Chaired by Senator Saifullah Abro, the panel directed the FBR and Federal Investigation Agency (FIA) to identify those responsible and ensure recovery of the stolen goods. The committee criticized the absence of senior FIA officials during proceedings and noted prior incidents of cigarette theft, including one in April 2024, raising concerns that consignments are being specifically targeted.

    Officials reported that CCTV cameras were installed in all FBR godowns as of January 14, and a new SOP was introduced to strengthen monitoring. Ten officers have been suspended, while others with potential links to the business community were transferred. The panel also highlighted weak coordination between the FIA and Khyber Pakhtunkhwa Police, instructing authorities to implement stronger security measures and provide consolidated records of all godowns since 2012 to prevent future theft and smuggling activities.

  • Holman Defends CTP’s ‘Notable Improvement’

    Holman Defends CTP’s ‘Notable Improvement’

    On Feb. 24, the Wall Street Journal’s editorial board published a piece titled, “Who’s in charge of the FDA?” arguing that internal tensions at the U.S. Food and Drug Administration could be undermining efforts across all departments. The piece points to decisions affecting emerging products and suggests a broader debate within the FDA over how flexible the approval process should be.

    In response, Matthew R. Holman, vice president of U.S. Scientific Engagement & Regulatory Strategy at Philip Morris International and a former chief scientist at the FDA’s Center for Tobacco Products, wrote a letter that the WSJ published yesterday (March 5), saying that despite criticism and organizational challenges facing the FDA, the organization — and the CTP in particular — has shown notable improvement.

    “Over the past year, the FDA’s Center for Tobacco Products has become a notable bright spot — delivering real results for an agency working through significant institutional challenges,” he wrote. “The CTP has been responsive to industry experts and congressional leaders.”

    Responding to concerns raised in a 2022 Reagan-Udall Foundation report and congressional hearings about transparency and a backlog of smoke-free product applications, Holman said the center has become more receptive to industry and lawmakers, pointing to actions such as a pilot program to fast-track nicotine pouch reviews and upcoming advisory committee hearings on smoke-free products.

    “The CTP has taken several notable actions in the past year and is poised for more positive developments,” Holman wrote. “There’s still more work to be done to ensure the CTP is meeting its mission and properly regulating tobacco products in the marketplace with a focus on authorizing scientifically substantiated smoke-free products. But the progress we have seen in the first year of this administration is notable.”

  • Report Examines Power of Pouches for Women’s Cessation

    Report Examines Power of Pouches for Women’s Cessation

    In advance of International Women’s Day on March 8, Smoke Free Sweden released its Empowerment in a Pouch report, focused on encouraging women to quit smoking by using alternative nicotine products. The report says women often face unique challenges with smoking cessation, including stronger behavioral cues linked to stress, weight management, and social contexts. As a result, many women have adopted alternatives such as e-cigarettes in attempts to reduce or replace cigarette use, drawn by features such as reduced odor, perceived lower health risks compared with combustible cigarettes, and the ability to use them discreetly in daily life. Surveys in several markets indicate that women who vape frequently cite convenience, control over nicotine intake, and the absence of smoke as key factors influencing their choice.

    The report also discusses how access to tobacco-free nicotine pouches has accelerated Sweden’s progress towards becoming smoke-free, particularly among women. The report was sent to governments around the world as policymakers, researchers, and health organizations continue to debate how alternative products affect women’s health, smoking cessation trends, and long-term nicotine dependence across different populations.

    “Sweden’s experience shows what happens when women are given realistic alternatives to smoking,” said Professor Marewa Glover, behavioral scientist and co-author. “When safer options are accessible, women quit in large numbers. If those options are restricted, progress slows, and smoking persists.”

  • Tech Offices Offering Nicotine Pouches as Workplace Perk

    Tech Offices Offering Nicotine Pouches as Workplace Perk

    A report in Fortune highlights a growing trend among some technology companies that are placing nicotine pouches in office vending machines as a workplace perk, with the aim of boosting employee focus and productivity. At the Washington, D.C., office of Palantir Technologies, vending machines stocked with nicotine pouches from startups Lucy Nicotine and Sesh Products have been installed for employees and guests over the age of 21. According to reports cited by The Wall Street Journal, the products are provided free of charge and paid for by the company.

    The practice is also appearing at smaller tech firms. Hello Patient, an AI-powered healthcare startup based in Austin, experimented with a nicotine-pouch fridge in its office after its founder noticed engineers using the products during work.

    The article also notes that researchers at the University of Texas MD Anderson Cancer Center said that while nicotine pouches are smoke-free, they still deliver nicotine and can lead to dependence, underscoring the ongoing debate about the health implications of workplace nicotine use.

  • Bangladesh Losing $480M in Evaded Tobacco Taxes: Study

    Bangladesh Losing $480M in Evaded Tobacco Taxes: Study

    A new study found that cigarette manufacturers in Bangladesh are evading an estimated Tk 5,182 crore ($480 million) in government revenue by manipulating retail prices and not adhering to the declared maximum retail price (MRP). The research, conducted by the University of Dhaka’s Bureau of Economic Research in collaboration with the Bangladesh Network for Tobacco Tax Policy, revealed that while manufacturers sell cigarettes to retailers at the printed MRP, retailers often sell them to consumers at significantly higher prices. This practice results in widespread sales above the official MRP, depriving the government of substantial tax revenue. The study, presented at a discussion at Dhaka Reporters Unity today (March 5), urged stronger regulatory oversight and stricter monitoring to curb price manipulation and improve tax compliance in the tobacco sector.

  • ITC Opens ENDS Investigation on Reynolds Complaint

    ITC Opens ENDS Investigation on Reynolds Complaint

    The U.S. International Trade Commission (USITC) has launched an investigation into certain disposable and closed-system electronic nicotine delivery systems and related components following a complaint filed by R.J. Reynolds Tobacco and affiliated companies. The complaint alleges violations of the Prevent All Cigarette Trafficking (PACT) Act, state and local flavor bans, directory requirements, and excise tax compliance, claiming that imports and sales of these products threaten the U.S. industry.

    Respondents include nine U.S. distributors such as D&A Distribution and Midwest Goods, as well as seven manufacturers based in China and Hong Kong, including Geek Miracle and Shenzhen Geekvape Technology. The USITC has not ruled on the merits and will hold evidentiary hearings before issuing a determination, with potential remedies including exclusion and cease-and-desist orders.

  • JTI’s Cerletti to Lead Cambodia Tobacco Association

    JTI’s Cerletti to Lead Cambodia Tobacco Association

    The Association of Tobacco Industry of Cambodia (ATIC) appointed Benjamin Cerletti, general manager of JT International Co., Ltd., as its new president following the conclusion of his predecessor’s two-year term. Cerletti, who has nearly 20 years of experience with JTI across Europe and Asia-Pacific, is expected to strengthen ATIC’s role as a platform for industry collaboration with government agencies and stakeholders. Under his leadership, the association aims to promote regulatory compliance, transparency, and sustainable growth in Cambodia’s tobacco sector, supporting both economic development and a fair business environment.

  • Health Groups Call for F1 to Cut Ties with Pouch Sponsors

    Health Groups Call for F1 to Cut Ties with Pouch Sponsors

    Campaign for Tobacco Free Kids said that 160 public health and advocacy groups from 57 countries have urged Formula One to extend its ban on tobacco sponsorships to include nicotine pouches, warning that current team partnerships with Philip Morris International and British American Tobacco, promoting Zyn and Velo through Ferrari and McLaren, make branding visible to millions of young fans. In a letter to F1 CEO Stefano Domenicali, the groups said the sponsorships undermine the sport’s youth-focused expansion efforts and expose minors to addictive nicotine products, citing data that a significant share of F1’s social media audience is under 25. Separate letters were also sent to The Walt Disney Company, The Lego Group, and Mattel, calling on them to support a comprehensive prohibition on all tobacco-related sponsorships in the sport.

  • Article: Ripple Effect of Restrictive Tobacco Regulations in S. Africa

    Article: Ripple Effect of Restrictive Tobacco Regulations in S. Africa

    South Africa’s 2020 tobacco ban, intended to reduce smoking-related health risks during the COVID-19 pandemic, drove legal sales underground and opened the door for illicit products that today account for as much as 75% of the market, according to law graduate Mukundi Budeli, writing for the Rational Standard and republished by the Free Market Foundation. Budeli said the shift cost the government tens of billions in lost tax revenue, fueled organized crime, and exposed consumers to unregulated and potentially more harmful products.

    He also said the policy hastened the departure of British American Tobacco, which announced the closure of its Heidelberg plant by the end of 2026, which will directly affect 230 employees and is expected to ripple across the broader tobacco value chain, impacting up to 35,000 jobs. Budeli argues that the crisis illustrates the unintended consequences of overly restrictive regulation and calls for a re-evaluation of South Africa’s approach to tobacco policy. He suggests that future governance should strike a balance between public health objectives, economic stability, and individual freedoms to prevent similar market distortions.

    The Free Market Foundation emphasizes that the situation serves as a warning to policymakers about the dangers of regulatory overreach and the need for pragmatic, accountable, and market-aware legislation in the tobacco sector.