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Category: Around the Industry

  • Cuban Cigar Company Repurposing Tobacco Waste

    Cuban Cigar Company Repurposing Tobacco Waste

    The Lázaro Peña Cigar Company in Holguín, part of Cuba’s Tabacuba Group, is turning industrial waste into a key resource to reduce costs and diversify production, the Cuban News Agency reports. Its reconstituted tobacco plant—Cuba’s first—repurposes cigarette dust and central leaf veins into reusable raw material for cigar blends, adding weight and volume while cutting the need for new inputs.

    The initiative supports sustainability by maximizing industrial byproducts, reducing pressure on agricultural land, and creating environmentally friendly materials. The company is also working with Holguín and Moa universities to develop tobacco-based products like tabaquina insecticide, and uses compost from waste to fertilize gardens that supply its workers’ cafeteria.

    Other recycled materials, such as leftover paper, are repurposed for educational resources at the Los Criollitos Children’s Center. Lázaro Peña’s efforts have earned the company multiple awards, including Cuba’s Quality Award and recognitions in Light Industry and Innovation at Expo Caribe 2025.

  • Korea Says Tobacco Toll is $30B as Court Ruling Approaches

    Korea Says Tobacco Toll is $30B as Court Ruling Approaches

    South Korea’s long-running lawsuit against tobacco companies is back in focus following new research showing smoking has imposed a major and rising burden on the national health insurance system. A study released January 5 by the National Health Insurance Service and the World Bank estimates smoking-related medical costs at 40.7 trillion won ($29.9 billion) from 2014–2024, with annual costs rising nearly 70% over the period despite declining smoking rates. More than 82% of costs were borne by public insurance, driven largely by cancer treatment, particularly lung cancer, the study said.

    Health officials say the findings strengthen the NHIS’s damages claim against KT&G, Philip Morris Korea, and BAT Korea, ahead of an appellate ruling expected later this month. Filed in 2014, the case is South Korea’s first tobacco lawsuit brought by a public institution seeking compensation for smoking-related health care expenses.

  • Habanos S.A. Co-Owner Extradited to China

    Habanos S.A. Co-Owner Extradited to China

    Billionaire businessman Chen Zhi was extradited by Cambodia to his native China following his arrest over an alleged multibillion-dollar cryptocurrency scam tied to human trafficking and forced labor, a case underscoring growing regulatory and enforcement risks across Southeast Asia’s consumer and logistics sectors. Cambodian authorities said Chen and two other Chinese nationals were detained yesterday (January 6) after a months-long transnational investigation and handed over to Chinese officials.

    Chen Zhi is believed to have extensive ties to the cigar and tobacco industry, owning or having owned stakes in companies such as Habanos S.A., Tabacalera USA, Tabacalera S.L., Tabacalera de García, and La Flor de Copán, among others, either directly or through shell corporations.

    U.S. prosecutors previously charged Chen Zhi with orchestrating global online scams from Cambodia, leading to the seizure of roughly $14 billion in bitcoin, one of the largest financial crackdowns on record. His business empire, Prince Group—previously sanctioned by the U.K.—has denied involvement in scams.

  • Universal CEO Presenting at ICR Conference 2026

    Universal CEO Presenting at ICR Conference 2026

    Universal Corporation announced that members of its management team will attend the ICR Conference (ICR Conference of Consumer Growth Companies) 2026, being held in Orlando, Florida, January 12-14. Preston D. Wigner, chairman, president, and CEO, will deliver a company presentation on January 13, beginning at 2 p.m. EST.

    A live webcast of the presentation will be available on Universal’s Investor Relations website.

  • Zimbabwe’s Tobacco Success Is a Policy Achievement. The Opportunity Now Is Execution.

    Zimbabwe’s Tobacco Success Is a Policy Achievement. The Opportunity Now Is Execution.

    EDITORIAL

    By Smart Chireru

    Zimbabwe’s tobacco industry is one of the country’s clearest demonstrations of what is possible when national vision is matched with consistent, deliberate policy execution.

    From the Land Reform Program to the structured oversight of the Tobacco Industry and Marketing Board (TIMB), from pricing frameworks to agronomic support systems, the state has quietly but effectively rebuilt a globally competitive sector. Today, Zimbabwe is not merely a tobacco producer; it is a world-class source of premium flue-cured Virginia tobacco, generating over US$1.2 billion in annual foreign currency earnings and sustaining the livelihoods of nearly 1.2 million Zimbabweans, from farming households to auction floors and logistics chains.

    This achievement should be acknowledged for what it is: a policy success.

    But it is also incomplete.

    Agricultural recovery is only the first chapter in the value story. The truly transformative opportunity now lies in converting this production strength into industrial depth moving decisively from exporting raw leaf to exporting value-added tobacco products.

    Crucially, the policy foundation for this shift already exists.

    Zimbabwe has, over the past few years, quietly assembled the core building blocks of a modern export manufacturing economy:

    ● Special Economic Zones (SEZs) with competitive fiscal incentives

    ● Export-oriented manufacturing licenses

    ● USD-denominated operating and banking frameworks

    ● Capital protection and investment guarantees

    These are not abstract policy ideas. They are the same instruments used by global manufacturing hubs such as Dubai, Vietnam, and Eastern Europe to attract patient capital and anchor high-value industrial activity.

    The question before us, therefore, is no longer what policies are needed.

    The question is how quickly and effectively we activate the policies already in place.

    For tobacco, activation means building SEZ-based, export-only processing and toll-manufacturing platforms. Facilities where Zimbabwean tobacco is not simply baled and shipped, but processed, blended, cut, and manufactured for international brand owners under strict compliance and traceability frameworks.

    This toll-manufacturing model is proven globally. It allows international tobacco companies to access premium leaf and skilled processing capacity without taking agricultural risk. For Zimbabwe, it delivers something far more powerful:

    ● Predictable, USD-denominated processing revenues

    ● High-value technical, engineering, and managerial jobs

    ● Skills transfer and industrial learning

    ● And, critically, the retention of far more value per kilogram of tobacco produced

    Processing at origin is not a slogan. It is an economic multiplier.

    The capital to unlock this next phase already exists within Zimbabwe. Pension funds, insurers, and institutional investors collectively manage significant pools of long-term capital seeking secure, asset-backed, development-aligned investments. What they require are bankable, well-governed projects with credible sponsors, strong offtake structures, and clear alignment to national priorities.

    Export-focused tobacco processing platforms, anchored in SEZs and supported by long-term international contracts, represent exactly this kind of asset class.

    Re-industrialization is not the responsibility of the government alone. It is a shared national project.

    About the Author
    Smart Chireru is the Founder and Chief Executive Officer of Bullion Essence Pvt Ltd, a Zimbabwe-based export manufacturing and investment company focused on value addition, industrialisation, and foreign-currency export growth.


    About Bullion Essence
    Bullion Essence is developing an export-only, SEZ-based tobacco processing and toll-manufacturing platform designed to process Zimbabwean tobacco into higher-value products for global markets. The company’s model integrates compliant processing, skilled manufacturing, and long-term export contracts to support Zimbabwe’s transition from primary production to industrial value creation.

  • 22nd Century Files PMTA Renewal

    22nd Century Files PMTA Renewal

    22nd Century Group, Inc. announced it has filed a renewal application with the U.S. Food and Drug Administration for its Modified Risk Tobacco Product authorization covering VLN reduced nicotine content cigarettes. The original authorization, granted in December 2021, expires in December 2026.

    22nd Century says VLN remains the first and only combustible cigarette authorized by the FDA to reduce the health harms of smoking, with approved claims including “95% less nicotine” and statements that it helps reduce nicotine consumption and smoking frequency. The company cited decades of independent clinical research supporting VLN products, including evidence that lowering nicotine content reduces smoking rates and increases quit attempts. Company CEO Larry Firestone said the renewal builds on FDA recognition that reducing nicotine directly can alter smoking behavior and improve public health outcomes, adding that VLN products align with the FDA’s proposed low-nicotine standard issued in January 2025.

  • PCA26 Registration Opens

    PCA26 Registration Opens

    The Premium Cigar Association announced that registration is open for its trade show, taking place April 17–20 in New Orleans. Open exclusively to current 2026 PCA members, the event will bring together manufacturers, retailers, and industry partners for four days of business, education, networking, and advocacy, with opportunities to discover new products, strengthen industry relationships, and take part in PCA’s highly anticipated return to one of its most popular host cities. Full details are available at pcashow.org.

  • UK Government Acknowledges Nicotine Pouches as Harm Reduction Tool

    UK Government Acknowledges Nicotine Pouches as Harm Reduction Tool

    The UK government confirmed that nicotine pouches are likely lower-risk alternatives to smoking, recognizing them as a distinct product category under the upcoming Tobacco and Vapes Bill. In response to campaigners advocating for a 20 mg nicotine strength cap, officials emphasized that any future regulations will be evidence-based and proportionate, aiming to protect public health while avoiding rules that could push adults back to smoking. Sales to under-18s will remain illegal, and the Department of Health and Social Care highlighted concerns about youth uptake, particularly among young men.

    Campaign groups, including 20isPlenty, We Vape, and Considerate Pouchers, welcomed the acknowledgment, noting that government recognition of nicotine pouches’ lower risk and separate status from cigarettes marks a major concession. Officials also confirmed that upcoming regulations on flavors, ingredients, packaging, and display will be subject to consultation, allowing stakeholders to advocate for measures that preserve adult access while limiting youth appeal.

    Further research into nicotine products and vaping has been commissioned, including a “living evidence map” by the National Institute for Health and Care Research to inform policy development. The Tobacco and Vapes Bill, currently awaiting report stage and third reading in the House of Lords, will also implement the government’s “smoke-free generation” plan, banning tobacco sales for anyone born on or after January 1, 2009, starting in 2027.

  • Malaysia Vape Retailers Call for Fair Tobacco Controls

    Malaysia Vape Retailers Call for Fair Tobacco Controls

    The Malaysia Retail Electronic Cigarette Association (MRECA) has criticized what it sees as an unbalanced regulatory focus on vaping, while conventional cigarettes—long linked to greater health risks—continue to be sold with limited enforcement. MRECA president Datuk Adzwan Ab Manas said public health policy should be fair and evidence-based, noting that vape products are regulated under the same legal framework as cigarettes through Act 852 and that the industry has invested heavily to meet government compliance requirements.

    He warned that sweeping bans or excessive restrictions on vaping could drive users back to combustible cigarettes or illicit markets, undermining health goals and harming legitimate businesses. MRECA urged the government to pursue balanced regulation, strengthen enforcement against cigarette misuse, engage in open dialogue with industry, and focus on realistic public health outcomes rather than symbolic prohibitions.

  • The Global Tobacco Industry is Solving The Wrong Problem

    The Global Tobacco Industry is Solving The Wrong Problem

    A new opinion piece, titled “The Global Tobacco Industry Is Solving the Wrong Problem,” by Zimbabwean entrepreneur Smart Chireru argues that the global tobacco industry is misdirecting its focus by optimizing branding, regulation, and distribution while ignoring a major structural inefficiency in where tobacco is processed. Chireru contends that large volumes of African flue-cured Virginia tobacco are exported unprocessed, shipped overseas for manufacturing, and then redistributed globally—an approach he describes as a legacy supply-chain flaw that adds cost, risk, and complexity without creating value.

    The article calls for a shift toward processing tobacco closer to where it is grown, citing examples from other industries that have adopted near-source manufacturing, bonded facilities, and integrated traceability. Chireru argues that modern compliance tools—such as serialization, blockchain tracking, and export-only processing—can mitigate risks often cited as barriers to origin-based manufacturing, while reducing logistics costs and working capital strain.

    Using Zimbabwe as a case study, the piece highlights the country’s combination of high-quality tobacco, skilled labor, and special economic zone frameworks as an opportunity for globally competitive processing at origin. Chireru concludes that the next competitive advantage for tobacco companies will come from supply-chain intelligence and structural efficiency, not incremental gains in marketing or tax strategy.