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Category: Around the Industry

  • Japan’s HTP Tax Changes Threaten JTI Growth: CFO

    Japan’s HTP Tax Changes Threaten JTI Growth: CFO

    Tax changes in Japan that will eliminate preferential tax treatment for heated tobacco products are expected to weigh on growth this year, according to Japan Tobacco International CFO Vassilis Vovos. The policy shift would tax heated tobacco at the same rate as traditional cigarettes, potentially raising retail prices by 70 to 100 yen ($0.46 to $0.65) per pack after sales tax. Vovos said the company plans to introduce incremental price increases throughout 2026 to offset the impact and avoid a single steep price hike.

    The tax change poses a challenge to JTI’s expansion of its Ploom heated tobacco device in Japan, the world’s largest heated tobacco market, which is currently led by rival Philip Morris International, according to Reuters. Parent company Japan Tobacco has relied on newer product categories to drive growth, with Ploom volumes rising more than 38% last year and reaching a 14.4% share of the heated tobacco segment. While executives warned the tax change could temporarily slow category growth, they said heated tobacco remains a key long-term revenue driver.

  • VTA ‘Disappointed’ by Lack of Progress from FDA Roundtable

    VTA ‘Disappointed’ by Lack of Progress from FDA Roundtable

    The Vapor Technology Association said it welcomed the chance to participate in a recent roundtable hosted by the U.S. Food and Drug Administration focused on premarket tobacco product application (PMTA) submissions for electronic nicotine delivery systems (ENDS), calling the meeting an opportunity for small businesses to engage directly with regulators. In a statement, VTA Executive Director Tony Abboud said industry representatives advocated for a more transparent, standards-based regulatory framework that would allow companies to invest in vapor technology and navigate product reviews with clearer scientific expectations.

    Abboud said VTA was encouraged by comments from FDA Commissioner Marty Makary acknowledging the need for predictability in regulatory standards but expressed frustration that some agency officials supported maintaining flexible or undefined scientific benchmarks.

    “Small businesses made it completely clear that they wanted and needed transparent and objective scientific standards governing how vape products should be made and how they should perform,” Abboud said. “Unfortunately, we were disappointed by so many FDA representatives throughout the meeting who either argued for continued scientific ambiguity or completely rejected standards. Their comments signaled a lack of alignment among FDA leadership on providing clear and predictable scientific standards or guidance for our industry – or even benchmarks that would ensure product and consumer safety. We received no guarantee of additional clarity on the broken and opaque PMTA rule and process, which has been used to prevent access to the products that Americans who smoke want and need to quit smoking deadly cigarettes.” 

    The association argued that clearer regulatory guidance would align with broader free-market principles supported by Donald Trump’s policy agenda.

  • Vape Co. Seeks Stay in $1.6M Battery Blast Verdict

    Vape Co. Seeks Stay in $1.6M Battery Blast Verdict

    Midwest Goods Inc. is asking the North Carolina Supreme Court to pause payment of a $1.6 million judgment awarded to the estate of Weldon Moore, who suffered severe burns when a lithium-ion battery exploded in his pocket in 2019. In court filings, the wholesaler argued that lower courts wrongly denied its requests for a new trial or judgment notwithstanding the verdict, claiming Moore failed to prove the company directly sold the defective battery. The company also contends liability and damages should have been tried separately and that its “sealed-container defense” should apply because the batteries were sold in prepackaged boxes.

    According to court records, Moore purchased the battery from Darth Vapor, operated by Richmen Enterprises LLC, which Moore’s estate argued obtained the product from Midwest. A jury sided with the estate, awarding $1.6 million, which has risen to more than $1.7 million with interest. The estate has asked the court to deny the stay request, arguing Midwest’s appeal bond leaves a shortfall of more than $221,000 and requests the company post additional security to cover the gap and anticipated interest while the appeal proceeds.

  • Guam Floats Discount to Cig Wholesalers to Offset Stamp Machine

    Guam Floats Discount to Cig Wholesalers to Offset Stamp Machine

    Guam has introduced legislation that would increase the tax discount given to cigarette wholesalers from 4 cents to 15 cents per pack to help offset the high costs of operating tobacco tax stamp machines now required under local law. The proposal comes after the Department of Revenue and Taxation began requiring wholesalers to produce and affix their own stamps to verify tax payments, with each machine costing nearly $200,000 and requiring additional staff, climate-controlled storage, and maintenance. Support for the measure was voiced by Western Sales Trading Company, which said it had to hire up to 10 employees and invest heavily in infrastructure to comply.

    Data said the 3.75% discount is the proper balance between industry costs and government revenue collection. Previous audits by the Office of Public Accountability found that tobacco taxes were historically difficult to verify due to limited tracking of imports, with Public Auditor Benjamin Cruz noting that authorities still lack accurate data on tobacco shipments entering the territory.

  • Filtrona Certified as ‘Top Employer’ in Singapore and Indonesia

    Filtrona Certified as ‘Top Employer’ in Singapore and Indonesia

    Filtrona has been named a Top Employer in Singapore and Indonesia by the Top Employers Institute, recognizing the company’s human resources practices and employee-focused culture. Singapore serves as Filtrona’s global headquarters, while Indonesia hosts its Innovation Centre in Surabaya, which coordinates global research and development. CEO Robert Pye said the recognition reflects the company’s commitment to fostering employee engagement, collaboration across regions, and talent development. Filtrona noted that the certification supports its broader strategy of investing in its workforce to drive innovation, operational excellence, and customer service as it expands globally.

  • Charlie’s Holdings’ 25K-Puff Vape Cleared in Calif.

    Charlie’s Holdings’ 25K-Puff Vape Cleared in Calif.

    Charlie’s Holdings, Inc. announced that California regulators have added its Virginia Tobacco 25K-puff SBX disposable vape to the state’s Unflavored Tobacco List (UTL), which, according to the company, makes it the first 25,000-puff vaping device authorized for legal sale in the state. The approval follows California’s strengthened flavor restrictions under Assembly Bill 3218, which requires that only products classified as unflavored and included on the UTL can be sold in the state. Company executives said the listing positions the SBX device to access California’s retail market while underscoring Charlie’s focus on regulatory compliance and youth-access prevention.

  • Singapore’s Tobacco Taxes Increase 20% Today

    Singapore’s Tobacco Taxes Increase 20% Today

    Beginning today (Feb. 12), Singapore is increasing tobacco excise duties by 20% across all tobacco products as part of Budget 2026 measures aimed at reducing smoking rates. Duties on cigarettes, cigars, and similar products will rise from S49.1 cents to S58.9 cents ($0.39 to $0.47) per stick, while taxes on smokeless tobacco and beedies will increase from S$378 per kg to S$454 per kg ($$299 to $359). Duties on unmanufactured and cut tobacco, as well as other tobacco refuse products, will rise from S$446 per kg to S$535 per kg ($352 to $423).

    The move builds on earlier a 10% tax hike in 2018 and a 15% hike in 2023, and complements broader tobacco-control policies, including standardized packaging and expanded smoke-free public spaces. Singapore’s daily smoking rate has steadily declined, reaching a record low of 8.4% in 2024, according to government health survey data.

  • Alliance One Tabbed N.C. Exporter of the Year

    Alliance One Tabbed N.C. Exporter of the Year

    Alliance One North America, a subsidiary of Alliance One International, was named the 2026 Exporter of the Year by the North Carolina Department of Agriculture and Consumer Services during the state’s Agricultural Development Forum. The award recognizes the company’s role in expanding global markets and exporting high-quality U.S. leaf tobacco while supporting the state’s agricultural economy. State Agriculture Commissioner Steve Troxler highlighted the company’s contribution to maintaining North Carolina’s tobacco legacy and global competitiveness.

  • Michigan Gov Proposes Major Tobacco Tax Hikes

    Michigan Gov Proposes Major Tobacco Tax Hikes

    Michigan Gov. Gretchen Whitmer’s 2026–27 budget proposal includes new and increased taxes on nicotine and tobacco products, imposing a 57% wholesale tax on vaping products and nicotine pouches, raising the tax on other tobacco products from 32% to 57%, and increasing the cigarette tax from $2 to $3 per pack. The measures are projected to generate about $232 million in additional annual revenue to support Medicaid, smoking cessation, and cancer prevention programs, and will be debated by state lawmakers in early 2026.

  • PCA and ProCigar Partner

    PCA and ProCigar Partner

    The Premium Cigar Association (PCA) and ProCigar announced a partnership agreement aimed at strengthening global collaboration within the premium cigar industry. The alliance will focus on supporting retailers, promoting premium cigar culture, expanding education initiatives across the supply chain, and enhancing international industry engagement between the U.S., the Dominican Republic, and other markets. As part of the partnership, ProCigar will return to exhibit at the PCA Trade Show, while a PCA delegation will attend the ProCigar Festival, reflecting efforts to deepen industry ties and jointly support promotional and educational programs.