Category: News This Week

  • New Administration Withdraws FDA’s Menthol Ban Bid

    New Administration Withdraws FDA’s Menthol Ban Bid

    The Trump administration issued a setback to health regulators and anti-tobacco activists as it withdrew a plan to ban menthol cigarettes in the United States.

    In April 2022, the U.S. Food and Drug Administration (FDA) proposed to ban the sale of flavored cigars and menthol cigarettes after several health advocacy groups said they were highly addictive and attractive to young people. A January 21, 2025, filing by the Office of Information and Regulatory Affairs shows that the proposal has now been “withdrawn.”

    The FDA sent its final version of the regulation to the White House in October 2023, however, the administration allowed dozens of meetings with groups opposing the rule, including civil rights advocates, business owners, and law enforcement officials, according to Reuters, with the government missing deadlines in December 2023 and March 2024 to issue a final rule on the ban.

    An estimated 18.5 million smokers consume menthol cigarettes, comprising one-third of the U.S. market share, meaning a ban would have cost billions of dollars in annual revenue for the industry.

    With news of the proposal withdrawal, Tobacco companies saw their stocks rise today, with British American Tobacco gaining 1.3% and both Altria Group and Philip Morris International gaining 1%. The market’s response suggests investor relief at the removal of a significant regulatory risk for these companies.

  • Wall Street Likes Big Tobacco

    Wall Street Likes Big Tobacco

    According to Seeking Alpha, a leading financial research firm, U.S.-listed tobacco companies had a successful year of returns in 2024. “The dividend aristocrats Philip Morris, British American Tobacco, and Altria Group rose between 24% and 27.9% last year, compared to S&P 500’s 23.3% gain during that period,” Seeking Alpha wrote.

    Seeking Alpha’s analysts and Wall Street opinions think 2025 will be equally positive for Big Tobacco.

    “On British American Tobacco, the bullishness of SA analysts crossed with one Sell, two Holds, and a Buy recommendation of sell-side analysts. Similarly, Altria Group got a resounding Buy from Seeking Alpha analysts compared to a wide spectrum of opinions on Wall Street.

  • Washington State Wants High Taxes Higher

    Washington State Wants High Taxes Higher

    The state of Washington saw two bills proposed this week that would further hike the state’s higher-than-average tobacco taxes. Rep. Kristine Reeves proposed House Bill 1416 and House Bill 1417 with a number of other Democrat cosponsors. Both measures impose additional taxes on those already in place for tobacco products. 

    HB 1416 imposes a new $0.015 per cigarette tax, about 30 cents for a standard pack. It also raises existing taxes on most vape juices, cigars, and other products. HB 1417 imposes a new $0.0015 per cigarette “embodied carbon tax,” about 3 cents a pack.

    These proposals are in addition to the taxes already in place, including $3.025 tax per pack from the state, $1.01 per pack federal, and other local sales taxes. Reeves also wants to ban flavored tobacco products.

    Because Washington has some of the nation’s highest tax rates on nicotine products, it, according to the Tax Foundation, also has some of the highest smuggling and counterfeit rates, costing the state an estimated $178.8 million in revenue. 

    According to HB 1416, revenue from vape products would be split evenly between cancer research and public health services, however, revenue from other taxed products would go directly to the general fund. The revenue from HB 1417 would go to the general fund and would be earmarked to “counteract carbon emissions,” but the bill does not explain how that would work. Coincidentally, both proposals come as the state anticipates a revenue shortfall between $10 billion and $16 billion over the next four years.

  • England: Half a Million Fake Cigarettes Seized

    England: Half a Million Fake Cigarettes Seized

    The Hull (England) City Council announced that last week it seized more than 500,000 counterfeit cigarettes and vapor products from a property on Anlaby Road.

    The council’s trading standards team and Humberside Police said it seized “266 pounds (121kg) of cigarettes and 500 vapes hidden in stacks of cardboard boxes.”

    “Tobacco like this is about more than just cheap cigarettes or vapes,” Charles Quinn, city councilor said. “Products aren’t subject to any safety regulations – they could pose a significant fire risk and there’s simply no way to know what you’re actually buying.

    “Research also shows they fund organized crime. There’s simply no place for these counterfeit products in our communities”.

  • U.K. Nearing Generational Ban

    U.K. Nearing Generational Ban

    The United Kingdom is poised to implement a generational tobacco ban this year, which would make it the only nation in the world to have such legislation at the national level. The proposal would make it illegal for anyone born after January 1, 2009 to buy tobacco products.

    The Tobacco and Vapes Bill was originally introduced in 2023 but made little progress until it was revived in November 2024. In the first vote in Parliament’s House of Commons, members of Parliament voted 415 to 47 in favor of the bill, which currently sits in the Commons committee stage and is set to be voted on again in the House of Commons later this month. Additional committee sittings are scheduled until then, with the intent of concluding the proceedings by January 30. The bill would then return to the House of Commons, and with a favorable vote would move to the House of Lords.

    As this proposal was introduced by the Conservative Party and later reintroduced by the Labour Party, there is little political resistance to stop it. There is fleeting hope that some of the language will change down the road, but as for now, the wording is a generic, wide-ranging categorization of tobacco products, which lumps all products containing nicotine together, including cigars.

    “The big problem for us is that, from our view, this has been such an undemocratic, uninformed piece of legislation,” said Eddie Sahakian, who runs London’s renowned Davidoff cigar store. “We would have understood if the normal forms of consultation had taken place, if all stakeholders were consulted and opinions were taken.

    “Our preferred outcome here is that there is a carve-out for handmade, premium cigars.”

    Writing for Cigar Aficionado, Garrett Rutledge said, “The next month will be critical. Every possibility theoretically remains on the table, although all signs continue to strongly point to the ban proposal becoming law this year.

    “If a nation like the United Kingdom were to implement such a law, it’s a near certainty that many others around the world would soon attempt to follow suit. New Zealand kicked things off in 2023, despite the legislation eventually being repealed. And recently, state and local governing bodies in the United States have begun proposing, and implementing, their own generational bans. Given the continued trend, it appears this is only just the beginning.”

  • Consilium Sciences Announces Rebrand

    Consilium Sciences Announces Rebrand

    Consilium Sciences, a leader in data-driven solutions for tobacco harm reduction, has announced an exciting milestone in its journey. Beginning February 1, 2025, the organization will operate under the name Sapphire Sciences, a move that reflects its expanded capabilities and long-term commitment to advancing public health.

    The new name, “Sapphire,” is a nod to “Appropriate for the Protection of Public Health” (APPH), which emphasizes Sapphire Sciences’ dedication to delivering science-driven insights and innovative solutions that support the development of safer alternatives in the tobacco and nicotine space.

    In response to evolving industry needs, Sapphire Sciences has broadened its service offerings, ensuring comprehensive support for clients navigating complex regulatory and scientific landscapes. Key areas of expertise include regulatory affairs, toxicology and chemistry, comprehensive product development, literature review and data science, and real-world data (RWD) and real-world evidence (RWE).

    President and CEO Catherine Vick emphasized the company’s continued focus on scientific integrity and client collaboration. “This rebranding reflects our commitment to delivering reliable, impactful solutions that support innovation in tobacco harm reduction and public health,” said Vick.

  • Greece Cracking Down on Sales to Minors

    Greece Cracking Down on Sales to Minors

    The Ministry of Health in Greece is introducing stricter regulations on alcohol sales to minors, as well as tighter controls on the sale and use of new tobacco and nicotine-based products, to include cigarettes, e-cigarettes, vaping substances, and synthetic nicotine items.

    A draft of the bill is being reviewed by the government today, in the wake of what is being called a serious and worrying trend of alcohol abuse by minors. The legal overhaul aims to protect minors from all harmful substances and improve enforcement mechanisms. 

    Many of the regulation changes center around where products can be sold, reinforced age verification at points of sale, and harsher penalties for retailers selling to minors.

    Further, the bill creates a new department within the National Public Health Organization specifically to monitor and enforce the revised laws on these substances.

  • Philippines: Illicit Trade Hurting Everyone

    Philippines: Illicit Trade Hurting Everyone

    The Senate Committee on Ways and Means said illicit trade has been a major factor in the rise of smoking prevalence in the Philippines and a drop in revenue from excise taxes on tobacco products.

    According to a survey by the Food and Nutrition Research Institute, smoking prevalence in the country rose from 14% in 2021 to 18% in 2023.

    “For almost six years, we reduced smoking prevalence, but in just two years, we’re back to square one,” Senator Sherwin Gatchalian said during the public hearing.

    Meanwhile, revenue from tobacco excise taxes fell from a peak of PHP176 billion (USD$3 billion) in 2021 to PHP134 billion (USD$2.3) in 2023.

    Gatchalian, who chairs the panel, attributed this to a rise in illicit trade, with data from Kantar showing illegal cigarettes now account for 16% of the market, up from 5% in 2021.

    “Illicit trade undermines our efforts,” he said, underscoring the need to address revenue leakages by curbing illicit trade. “These products evade taxes and make cigarettes more accessible, promoting smoking among our people.”

    Tobacco products are among eight excisable items in the country, along with alcohol, vapor products, petroleum, automobiles, non-essential goods and services, sugar-sweetened beverages, and mineral products.

    The survey also revealed a rise in the use of e-cigarettes among adolescents, with usage skyrocketing from 7.5% in 2021 to 39.9% in 2023.

  • Tobacco Technology Celebrates 50th

    Tobacco Technology Celebrates 50th

    Tobacco Technology, Inc. (TTI), a family-owned and operated company, is proud to announce its 50th anniversary in 2025. Founded in 1975 by Duke Cassels-Smith, the company began as a small operation specializing in the creation of high-quality tobacco flavorings. Today, it is a leading global supplier of flavor products and a key player in multiple industries, including e-liquids, shisha, cigarette, cannabis, cigar, oral tobacco, and nicotine pouches.

    Under the leadership of Duke’s wife, Jeremy Cassels-Smith, and their son, George Cassels-Smith, the company has evolved into a multi-faceted enterprise. From its origins in the United States, TTI has grown to include several key divisions, including E-LiquiTech, Inc. (an e-liquid manufacturing company), Emerald Green Technology, Inc. (focused on flavoring solutions for the cannabis industry), and TTI Flavors in Assisi, Italy (a full-scale flavor manufacturing facility).

    “As we continue to expand our global footprint, we remain steadfast in our commitment to driving growth and innovation within the tobacco industry,” TTI president David Johnson said. “Our strategic investments in the e-liquid and cannabis markets underscore our dedication to staying at the forefront of industry evolution, responding to changing consumer preferences, and opening new avenues for growth. The opening of our state-of-the-art manufacturing facility in Italy will enhance our ability to our global customers with greater efficiency and stability. This marks a significant milestone in our vision to lead on a global scale, delivering value to our customers, partners, and stakeholders around the world.”,

    “Reaching this incredible milestone is a testament to the hard work, vision, and dedication of our team,” said Jeremy Cassels-Smith, chairwoman of Tobacco Technology. “What started as a passion project of my late husband Duke has grown into an international operation, providing exceptional flavoring solutions to the tobacco industry across the globe. We remain committed to innovation and quality, ensuring that our products continue to set industry standards.”

    The company now employs over 100 professionals worldwide who are dedicated to the development, manufacturing, and rigorous quality oversight of the flavors that have made Tobacco Technology, Inc. a trusted name. Their expertise spans tobacco, e-liquids, cannabis, with a wide variety of flavor applications.

    “Our family has always been at the heart of this business, and our team is like an extension of that family,” said George Cassels-Smith, CEO of the company. “As we move forward, we remain focused on the values that have guided us for five decades—integrity, quality, and a commitment to delivering flavors that our customers can depend upon.”

    TTI is also proud to be a leader in sustainability and cutting-edge technology. For example, Its E-LiquiTech division makes completed e-juice formulations for its customers that utilizes pharmaceutical GMP’s and Rockwell automation, incorporating complete track and traceability and closed-loop recycling while receiving a 96th percentile EcoVadis Gold sustainability rating. Perfect every time.

    To mark this momentous occasion, TTI will be hosting a celebratory event with customers, partners, and employees later this year to honor the legacy of its founder, Duke Cassels-Smith, and the company’s ongoing commitment to excellence.

    As Tobacco Technology, Inc. celebrates its 50-year milestone, the company remains steadfast in its mission to provide the highest-quality, most innovative flavor solutions to its global customer base while staying true to the values that have been the foundation of its success. “We appreciate your business that has fueled this growth and we thank you for all your support over the last 50 years.”

  • Regulatory Freeze Pending Review

    Regulatory Freeze Pending Review

    As the Trump Administration digs in, it has called for a regulatory freeze pending review across all agencies, citing five points:

    (1)  Do not propose or issue any rule in any manner, including by sending a rule to the Office of the Federal Register (the “OFR”), until a department or agency head appointed or designated by the President after noon on January 20, 2025, reviews and approves the rule.  

    (2)  Immediately withdraw any rules that have been sent to the OFR but not published in the Federal Register, so that they can be reviewed and approved as described in paragraph 1, subject to the exceptions described in paragraph 1. 

    (3)  Consider postponing for 60 days from the date of this memorandum the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise.  

    (4)  Following the postponement described in paragraph 3, no further action needs to be taken for those rules that raise no substantial questions of fact, law, or policy.  For those rules that raise substantial questions of fact, law, or policy, agencies should notify and take further appropriate action in consultation with the OMB Director.

    (5)  Comply in all circumstances with any applicable Executive Orders concerning regulatory management.

    Should actions be identified that were undertaken before noon on January 20, 2025, that frustrate the purpose underlying this memorandum, the administration modify or extend this memorandum, to require that department and agency heads consider taking steps to address those actions.