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Category: News This Week

  • Imperial Posts 1.8% Growth in First Half of 2026

    Imperial Posts 1.8% Growth in First Half of 2026

    Imperial Brands reported modest first-half 2026 growth, with tobacco and next-generation product (NGP) net revenue rising 1.8% to £14.7 million and overall revenue up 0.8%, supported by pricing gains that offset declining cigarette volumes. NGP revenue increased 7.5%, driven by strong performance in Asia, Africa, and Eastern Europe, and continued market share growth across all categories. Adjusted operating profit rose slightly, while reported profit declined significantly due to one-off costs tied to a legal settlement and strategic transformation initiatives.

    Cash generation remained strong, with £2.6 billion in free cash flow and a 98% conversion rate, supporting £809 million in share buybacks and a 4% dividend increase. The company said it remains on track to meet full-year guidance and is progressing with its 2030 strategy, targeting £320 million in annual cost savings while investing in transformation efforts to improve efficiency and expand its NGP portfolio.

    “While staying laser-focused on in-year delivery, we are also making progress on self-help activities to drive efficiency and our long-term transformation to build the capabilities which will underpin our future growth,” Chief Executive Lukas Paravicini said. “We are making good progress on focusing our supply chain footprint and have begun implementing our strategic partnership with Capgemini.”

  • BAT’s Case for Violating North Korean Sanctions Dropped

    BAT’s Case for Violating North Korean Sanctions Dropped

    A U.S. federal judge dismissed the government’s criminal case against British American Tobacco after the company fulfilled the terms of a three-year deferred prosecution agreement related to sanctions violations involving North Korea. The U.S. Department of Justice said BAT complied fully with the 2023 agreement, including strengthening compliance systems and paying approximately $630 million in penalties, one of the largest sanctions-related fines tied to North Korea.

    The case stemmed from allegations that BAT continued supplying tobacco products to North Korea between 2007 and 2017 through a third-party entity after publicly exiting the market. With the dismissal granted by the court, the matter concludes following the company’s settlement and compliance measures.

  • Ispire Partners to Expand into Nicotine Pouch Market

    Ispire Partners to Expand into Nicotine Pouch Market

    Ispire Technology announced that it entered into a joint venture with Shandong Jincheng Pharmaceutical Group to manufacture and commercialize nicotine pouch products, marking its expansion into the oral nicotine segment. The partnership combines Jincheng Pharma’s manufacturing capabilities and pharmaceutical expertise with Ispire’s regulatory infrastructure and global distribution network, enabling rapid entry into a category projected to grow significantly in the coming years.

    The move diversifies Ispire’s portfolio beyond vaping hardware and positions the company to tap into a fast-growing market estimated at $7 billion in 2025. The company said the joint venture will support near-term production and commercialization, while forming part of a broader strategy to build a multi-category nicotine platform focused on reduced-risk products.

  • German Study Finds Strict Laws Don’t Equate to Cessation Success

    German Study Finds Strict Laws Don’t Equate to Cessation Success

    An international study by the German Cancer Research Center analyzing more than 50,000 smokers across 29 countries found that while stronger tobacco control policies—such as taxes, warning labels, and smoking bans—significantly increase quit attempts, long-term success is driven largely by individual and social factors. The research showed that smokers living with other smokers or exhibiting higher nicotine dependence were substantially less likely to quit successfully, regardless of policy environment.

    Researchers said the findings highlight a gap between policy impact and behavioral outcomes, indicating that regulatory measures can prompt quitting efforts but do not guarantee cessation. The study concludes that outcomes are heavily influenced by personal environment, including household smoking behavior and addiction levels, suggesting that cessation success varies widely even in markets with strict tobacco control frameworks.

  • Imperial Says Middle East Impact Won’t Be Seen Until 2027

    Imperial Says Middle East Impact Won’t Be Seen Until 2027

    Imperial Brands said ongoing conflict in the Middle East could raise costs and weigh on consumer demand if prolonged, though the company has not yet seen a material impact and maintained its full-year guidance. CEO Lukas Paravicini told reporters that any disruption—particularly to inputs such as filters and plastics and to logistics—would likely affect financial performance from 2027 onward, as energy and supply chain pressures build.

    For the first half, Imperial reported small growth slightly below expectations, as cigarette volume declines and competition in next-generation products weighed on performance. The company also reported a 16-basis-point decline in market share across key markets, reflecting a strategic focus on profitability over volume.

  • Filtrona Report Touts ESG Progress

    Filtrona Report Touts ESG Progress

    Filtrona announced the release of its 2025 Sustainability Report, highlighting a shift from environmental, social, and governance (ESG) commitments to measurable performance across its global operations. The company reported a 51% reduction in Scope 1 and 2 emissions in line with its Science Based Targets, alongside achieving zero waste to landfill across its sites and increasing the share of sustainable or plastic-free products to 24% of its portfolio. Filtrona also strengthened responsible sourcing, with 88% of wood-based materials certified or controlled, and continued investment in workforce development and governance practices.

    The company said its progress reflects a broader transition toward embedding sustainability into day-to-day operations, supported by external recognition, including EcoVadis Gold status and CDP “B” ratings across climate, forests, and water. Filtrona reported no substantiated incidents related to corruption, discrimination, or human rights violations during the period, and emphasized that ESG is now being operationalized as a core component of long-term business performance and value creation.

  • Germany Plans to Ban Disposable E-Cigs

    Germany Plans to Ban Disposable E-Cigs

    Germany is preparing legislation to ban disposable e-cigarettes, with Environment Minister Carsten Schneider last week citing safety and environmental concerns as the primary drivers. The government plans to introduce a draft bill in the coming months that would effectively end sales of single-use vapes, following reports of increased fires at waste facilities linked to improperly discarded devices.

    Officials said the lithium-ion batteries in disposable e-cigarettes pose a risk when crushed during waste processing, endangering workers and infrastructure. The proposed ban also aligns with broader environmental goals, as authorities seek to address the growing impact of electronic waste and improve recycling outcomes.

  • Texas Court Says Nicotine Pouches Taxable as Tobacco

    Texas Court Says Nicotine Pouches Taxable as Tobacco

    On May 8, the Texas Supreme Court ruled that oral nicotine pouches qualify as taxable tobacco products under state law, finding that they fall within the definition of “tobacco substitutes.” The court determined that because the products contain nicotine derived from tobacco and are combined with plant-based materials, they meet the criteria for taxation despite not containing traditional tobacco leaf.

    According to Law 360, the decision clarifies the tax treatment of nicotine pouches in Texas, aligning them with other tobacco products and potentially affecting pricing and regulatory obligations for manufacturers and retailers operating in the state.

  • Finland’s Kokoomus Plans Generational Tobacco Ban

    Finland’s Kokoomus Plans Generational Tobacco Ban

    Finland’s National Coalition Party (Kokoomus) proposed a generational tobacco ban as part of its long-term policy platform, aiming to prohibit tobacco sales from 2030 to individuals born in 2015 or later. The proposal, included in a broader program outlining policy goals through 2040, will be voted on at the party’s congress in June.

  • Spain’s Tobacco Prices Rise Again

    Spain’s Tobacco Prices Rise Again

    Spain implemented another round of tobacco price increases, with new adjustments for cigars, cigarillos, rolling tobacco, and pipe tobacco published in the official state gazette on May 8 and taking effect the following day. The changes, which follow earlier revisions in April, reflect a pattern of frequent, incremental price updates driven by manufacturer submissions, rising production and transport costs, and broader inflation pressures. Premium cigars and imported products have seen notable increases, while rolling tobacco and pipe tobacco prices have also climbed across multiple formats.

    The latest update reinforces a broader trend in 2026 of gradual but continuous price increases across tobacco categories rather than single large adjustments. Under Spain’s pricing system, manufacturers regularly submit revised price lists for approval, resulting in ongoing shifts in retail pricing, particularly in non-cigarette segments.