Category: News This Week

  • COP10 Kicks Off

    COP10 Kicks Off

    Tobacco growers demanding to be heard during COP4 (Photo: ITGA)

    The parties to the World Health Organization’s Framework Convention on Tobacco Control will meet this week in Panama for their 10th gathering (COP10). Originally scheduled for November 2023, the event was postponed to Feb 5-10, 2024, due to civil unrest in the host country.

    Experts who have been following the preparations expect debates this week about the “tobacco endgame,” which includes nicotine reduction, retailer quotas and generational tobacco purchasing bans. They also anticipate talks on contents and emissions testing and measurements, filters and ventilation, and pricing and tax increases.

    In the runup to the event, documents have been released for discussions about extending advertising/sponsorship restrictions to corporate campaigns and newer media; supporting anti-tobacco litigation; and discouraging industry diversification into pharmaceuticals and other areas. Also on the agenda: a proposal to redefine aerosol from tobacco-heating products as smoke—a move that critics have described as an attempt to rewrite basic scientific principles.

    In addition, the COP delegates will consider recognizing tobacco control as fundamental to the right to health, clearing the way to attack the industry as a violator of human rights and subject it to additional liability. Participants in the Panama event will likely also debate emerging evidence on new products. They may push for e-cigarettes and tobacco-heating products to be regulated like combustible cigarettes, a development that critics say is not based on science and would discourage the tobacco harm reduction efforts that have been underway in many countries.

    Industry officials, grower representatives and consumer groups have criticized the COP for its exclusionary practices and what they view as a prohibitionist agenda. While FCTC Article 5.3 instructs member states to protect policymaking from undue industry influence, critics say this provision has been used as an excuse to shut down all communications.

    “The [FCTC] treaty, which came into force in 2003 and held its first COP in 2005, originally had the very legitimate aim of controlling tobacco consumption in order to counter its harmful effects on health,” said Jose Javier Aranda, president of the International Tobacco Growers Association, in a statement.  

    “Since then, its objectives have been radically modified. Throughout the treaty’s long history, tobacco growers and their legitimate representatives at global level, the International Tobacco Growers’ Association have observed an increase in the radicalization of the methods applied by the FCTC, in which exclusion and lack of transparency have set the tone.”

    “At COP10, decisions are being made without the input of those most affected—the consumers. This exclusion is unacceptable. Harm reduction saves lives, and it’s imperative that this is recognized and integrated into global tobacco control policies, said Michael Landl, director of the World Vapers’ Alliance, in a statement.

    “By sidelining the voices of those directly impacted, the WHO FCTC is ignoring a fundamental human rights issue,” said Nancy Loucas, executive coordinator of The Coalition of Asia Pacific Tobacco Harm Reduction Advocates. “Individuals seeking to protect their loved ones and themselves from the harms of smoking are being denied access to less harmful alternatives. This is not just a failure in policy but a failure in compassion.”

    COP10 will be followed the third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco, Feb 12-15.

  • BAT Nigeria Celebrates Factory Anniversary

    BAT Nigeria Celebrates Factory Anniversary

    From left to right: Chief Kola Karim, chairman of the BAT Nigeria (BATN) advisory board; Odiri Erewa-Meggison, director, external affairs for BAT’s West, and Central Africa business; and Yarub Al-Bahrani, managing director at BAT Nigeria and West and Central Africa. (Photo: BAT Nigeria)

    British American Tobacco Nigeria is celebrating the 20th anniversary of its Ibadan factory. Established in 2003, the Ibadan factory has been a cornerstone of BAT Nigeria’s operations in West and Central Africa, enabling exports to 11 countries in the West and Central Africa region, and recently exporting to the U.S. 

    “Two decades ago, we embarked on a journey to establish a world-class manufacturing facility in Nigeria, and today, we are proud to celebrate the Ibadan factory as a shining example of our commitment to excellence and sustainability in Nigeria,” said Yarub Al-Bahrani, managing director at BAT Nigeria and West and Central Africa.

    “The factory has played a pivotal role in our success, contributing significantly to the Nigerian economy, creating employment opportunities across the value chain, and promoting environmental stewardship”, he added.

    The Ibadan factory has implemented a comprehensive environmental management system, incorporating stringent measures to reduce its carbon footprint. According to BAT, these efforts have resulted in significant reductions in energy consumption, water usage and waste generation.

    On Feb. 6, Ibadan will unveil its 1.4MWP grid-tied solar panel system. Its advocacy for water stewardship has been recognized with various certifications, including the prestigious Alliance for Water Stewardship core certification.

    Speaking on the factory’s milestone, BAT’s director of external affairs for West and Central Africa, Odiri Erewa-Meggison, asserted that BAT Nigeria has remained steadfast in its commitment to driving ‘A Better Tomorrow,’ [the company’s corporate slogan] while prioritizing safety, sustainability and responsible business practices.

    “The Ibadan factory is not just a manufacturing facility; it is an integral part of the Nigerian community and we are continuously committed to making a positive impact on the lives of those around us,” she said.

    Erewa-Meggison stated that the anniversary celebration will serve as a tribute to the accomplishments and successes of the factory. “This is an opportunity to acknowledge the dedication and hard work of all employees, partners and stakeholders who have played a vital role in shaping our growth and journey,” she added. “We look forward to celebrating more milestones and positive contributions of the factory.”

  • Sampoerna Opens New Third-Party Facility

    Sampoerna Opens New Third-Party Facility

    Photo: Sampoerna

    Sampoerna and Koperasi Karyawan Redrying Bojonegoro have opened a new third-party operator (TPO) production facility for hand-rolled kretek cigarettes in Dander, Bojonegoro Regency, East Java.

    During the inauguration ceremony, East Java Governor Khofifah Indar Parawansa welcomed the investment and its impact on regional employment. “I hope MPS Dander will improve the welfare of not only its employees but also their families and the community in Bojonegoro. Amidst the digital ecosystem transformation era, the SKT industry and TPOs can be a solution, especially for workforce absorption,” she said in a statement.

    “The multiplier effect of the SKT industry is extraordinary. I believe that TPO Dander will strengthen the economy of Bojonegoro Regency,” said Khofifah.

    Khofifah also expressed satisfaction with the high level of female participation in the facility’s workforce. “Because women who have their own income will become mothers of the nation,” she noted. “Therefore, the recruitment of women as workers at TPO Dander affirms women’s participation in development.”

    Sampoerna’s head of hand-rolled manufacturing, Sinta Hartanto, said his firm was committed to continued value creation. “As a company that has been operating for more than 110 years in Indonesia, our vision is to continue playing an active role in supporting the growth of the national economy by encouraging down-streaming in the tobacco industry, long-term investments, and workforce absorption to create sustainable value. This additional partnership is part of our efforts to realize that vision,” he said.

    With the absorption of more than 3,000 workers in TPO Dander along with additional absorptions in various other factories and TPOs, Sampoerna currently has more than 80,000 direct and indirect employees, about 90 percent of whom are working in SKT production facilities.

    “In addition to new partnerships with local entrepreneurs/cooperatives, as well as opening new employment opportunities for thousands of workers, Sampoerna’s new SKT manufacturing facilities and additional TPOs will also increase raw materials absorption of tobacco and clove from Indonesian farmers. Hand-rolled cigarettes require twice as much tobacco and cloves as machine-made cigarettes,” explained Sinta.

    TPS Dander that is owned by Koperasi Kareb became the 39th TPO in Java and the fourth in Bojonegoro Regency that partners with Sampoerna. All TPOs are owned and operated by local entrepreneurs and/or local cooperatives to produce Sampoerna’s SKT brands. Sampoerna operates seven production facilities in several cities/regencies in Java, including four SKT production facilities in Surabaya, Malang, and Probolinggo, East Java.

     

  • Philippines Urged To Support Farmers at COP

    Philippines Urged To Support Farmers at COP

    Photo: Phiilip Morris Fortune Tobacco Co.

    Filipino tobacco growers are asking their government to advocate for their livelihoods at the 10th Conference of the Parties (COP10) to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), which is scheduled to take place Feb. 5-10 in Panama.  

    “Our lives are deeply intertwined with tobacco farming,” Leonardo Montemayor, a former agriculture secretary and board chairman of the Federation of Free Farmers, told The Manila Standard. “It is a way of life and our means of survival amid harsh economic headwinds. With the Department of Agriculture roadmap affirming its long-term support for tobacco farming, we hope that the Philippine government will take that commitment to heart when championing our industry in this upcoming COP. 

    The National Tobacco Administration (NTA) recently launched the Sustainable Tobacco Enhancement Program (STEP), an initiative aimed at boosting indigenous tobacco cultivation, particularly in Mindanao.

     Saturnino Distor, president of the Philippine Tobacco Growers Association, said STEP would improve tobacco farmers prospects, especially with the regulation of safer alternatives to cigarettes like vapes and e-cigarettes. “Studies and science show these are better than cigarettes. That’s where the industry is headed, so we have hope that tobacco farming will continue,” he said.  

    “Tobacco farming sustains millions of farmers and their families, as well as workers in the industry,” Distor said. “Switching crops requires significant investment in new infrastructure. If the future of alternative products is uncertain, what about the future of farmers? We appeal for compassionate and humane policies.” 

    The Philippine tobacco sector employs more than 2.1 million people and contributes significantly to government income, with PHP160 billion ($2.86 billion) collected in excise taxes in 2022, according to the NTA.

  • PMI and BAT Settle Patent Disputes

    PMI and BAT Settle Patent Disputes

    Photo: ASDF

    Philip Morris International and British American Tobacco have settled their ongoing intellectual property disputes relating to heated tobacco and vapor products.

    The cigarette makers had been fighting a multi-front patent battle. BAT, which makes Vuse vapes and Glo heated tobacco devices, was ordered to pay PMI millions of dollars after losing one case, while PMI has been blocked from importing its flagship heated tobacco device IQOS into the United States as part of another.

    The settlement includes non-monetary provisions between PMI and BAT that resolve all ongoing global patent infringement litigation, encompassing all related injunctions and exclusion orders, and prevents future claims against current heated tobacco and vapor products. The settlement also allows each party to innovate and introduce product iterations.

    “We are pleased that this matter has been resolved to the mutual satisfaction of both parties,” said PMI CEO Jacek Olczak in a statement. “There is a clear and growing global desire from adults who smoke to choose from a range of smoke-free products, and we believe continued reduced-risk category innovation can accelerate declines in the harms associated with smoking to the benefit of consumers and public health at large as we continue PMI’s journey to end the sale of cigarettes.”

    “This agreement is an important step forward for BAT and all our stakeholders,” said BAT CEO Tadeu Marroco in a statement. “Having already built two £1 billion [$1.28 billion] brands in Vuse and Glo, the potential for their continued impact on tobacco harm reduction is clear. I am delighted that this settlement will allow BAT to focus on developing innovative solutions that provide adult consumers with a greater choice of reduced risk products in support of our ‘A Better Tomorrow’ purpose. By doing so, we will help build a smokeless world for the benefit of consumers, investors and society as a whole.”

  • Song Young-jae to Lead BAT Korea

    Song Young-jae to Lead BAT Korea

    British American Tobacco has appointed Song Young-jae as its new country manager in Korea, reports The Korea Herald.

    A marketing and finance expert, Song will be tasked with promoting BAT’s combustible products.

    “Song is an expert in the global tobacco industry and the right person to spearhead the company’s future innovation,” a company official was quoted as saying.

    A graduate from the London School of Economics and Political Science, Song started his career at the BAT headquarters in London in 2008. In 2010, Song moved to BAT’s Netherlands office, where he nurtured his specialty in marketing and finance.

    Following a first stint at BAT’s Korean unit between 2014 and 2020, Song was appointed general director of the BAT-Vinataba joint venture in Vietnam.

    “I feel heavy responsibility taking the country manager post at BAT Rothmans amid the rapidly changing market environment,” Song said. “I will introduce innovative and sustainable business strategies so that BAT Rothmans can lead the market in the future and solidify its status in the global tobacco industry.”

  • Quebec Urged to Crack Down on Flavored Vapes

    Quebec Urged to Crack Down on Flavored Vapes

    Eric Gagnon, Vice-President of Corporate and Regulatory Affairs at Imperial Tobacco Canada, urges the government to buckle down on enforcing its law during the press conference. (Photo: Imperial Tobacco Canada)

    Imperial Tobacco Canada is urging the government of Quebec to crack down on illegal flavored vaping products.

    Three months after the law banning flavors in vaping products came into force, flavored e-cigarettes remain available at a large number of retail outlets that either infringe on the law or are using a variety of tactics to circumvent the law, according to Imperial Tobacco Canada, which is part of British American Tobacco.

    “We are aware of the growing concern with the proliferation of products that circumvent the regulations, resulting in the creation of an illicit market,” said Imperial Vice-President of Corporate and Regulatory Affairs Eric Gagnon in a statement.

    “We recently identified over 200 sales outlets that sell non-compliant vaping products. These stores have not adjusted to the new regulations and continue to offer a wide range of flavored products, including those that exceed the maximum permitted quantity of 2 ml.”

    According to Imperial, these stores now also sell flavor enhancers as a way to circumvent the new regulation. “Given that these enhancers are not intended to be vaped, they can pose serious risks to consumers who use them,” the company wrote in a press note. “It is also because of a similar illegal market that a wave of lung diseases spread between 2019 and 2020 in the U.S., claiming 68 lives.”

    Imperial says that instead of meeting its objective of tackling vaping among young people, the government has created a thriving illicit market.

    During a Jan. 21 appearance on the talk show Tout le monde en parle Health Minister Christian Dubé blamed tobacco companies for the situation.

    Imperial Tobacco Canada said it strongly refutes the allegations. “As a responsible company that fully complies with the regulations in place, we denounce these abuses and reiterate our call for stronger enforcement of the law,” said. Gagnon. “We warned the minister’s office several months ago about the inevitable collateral damage that would result from such a regulation being implemented. Unfortunately, nothing was done, and the situation persists as a result.”

  • EU: Tobacco Meetings are Transparent

    EU: Tobacco Meetings are Transparent

    Photo: artjazz

    The European Commission insists it has sound transparency measures in place, despite EU Ombudsman Emily O’Reilly’s findings of maladministration in an inquiry of the Commission’s interactions with representatives of the tobacco industry.

    “The Commission has been uncompromising in delivering the highest standards of transparency—on who we meet and who seeks to influence us,” a Commission spokesperson told Euractiv.

    In December, O’Reilly concluded that the Commission had failed to “ensure a comprehensive approach across all its departments to transparency of meetings with representatives of the tobacco industry,” including “failure to ensure a systematic assessment, across all directorates-general, as to whether potential meetings are needed with representatives of the tobacco industry.”

    Article 5.3 of the World Health Organization’s Framework Convention on Tobacco Control instructs parties, such as the EU, to protect public health polices from the tobacco industry’s commercial and other vested interests.

    Despite the finding, the Commission spokesperson insisted that there is a “very solid baseline consisting of horizontal rules on ethics and integrity for Commission staff.”

    Tobacco Europe, an industry organization, confirmed that it is difficult for tobacco lobbyists to arrange meetings with the Commission in any directorate-general. Its director of EU affairs, Nathalie Darge, said that FCTCs Article 5(3) is often “misinterpreted” and used as an excuse not to meet industry representatives.

  • Profits Up at Indian Cigarette Makers

    Profits Up at Indian Cigarette Makers

    Image: RODWORKS

    ITC’s reported a profit of INR55.72 billion ($670.3 million) for the three months that ended Dec. 31, up nearly 11 percent over the comparable 2023 period, the company announced on its website.

    The consumer goods giant benefited from higher demand for its cigarettes as a crackdown on the smuggling of international cigarette brands reduced competition. A sharp escalation in costs of leaf tobacco and certain other inputs, along with increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing.

    The company’s cigarette business, which contributes more than 40 percent of ITC’s top line, grew 3.6 percent over the period. Its paperboards, paper and packaging business, by contrast, struggled with competition from China and sluggish economic conditions in some of its export markets. The segment’s revenue declined almost 10 percent.

    ITC’s hotel business, which the conglomerate plans to spin off into a separate entity, reported  an 18 percent jump in revenue, driven by a strong revival in domestic tourism and heightened demand from corporate bookings.

    ITC competitor Godfrey Phillips India (GPI) also reported improved performance for the third quarter, according to Reuters. The company posted a consolidated net profit of INR2.12 billion, up 6.6 percent over the comparable 2023 quarter. Total revenue from operations rose 34 percent to 14.88 billion rupees, with the company’s core cigarettes segment registering a growth of 37 percent.

    GPI attributed its performance to growth in its core segment and easing expenses. The company manufactures and distributes Marlboro-branded cigarettes under a license agreement with PMI.

    The growth in the cigarette segment was led by the Marlboro Compact, which is priced at INR10 apiece.

  • Zimbabwe Exports Up

    Zimbabwe Exports Up

    Photo: Taco Tuinstra

    Zimbabwe earned nearly 3.5 times as much from tobacco exports in January than it did in the same month of 2023, reports The Herald.

    The country exported leaf worth $274.7 million last month, compared with $80.9 million a year ago. The golden leaf raked in just over $1.2 billion from the more than 233 million kilograms exported in 2023.

    According to the Tobacco Industry and Marketing Board, exporters shipped 37.8 million kg to date this year, with the bulk of leaf going to China, which has so far imported 30.2 million kg valued at $248.8 million. The average price was $8.24 per kg.

    African countries imported the second largest amount of Zimbabwean tobacco at 3.2 million kg worth $9.3 million at an average price of $2.89 per kg.

    European Union countries imported 1.3 million kg of tobacco from Zimbabwe valued at $2.6 million at an average price of $2.09 a kg.

    For next season, Zimbabwe’s tobacco growers have thus far planted 113,101 hectares, compared to 117,645 ha in the same period last year.

    The decrease in tobacco planting is largely attributed to the delayed start of the rainy season.