Category: News This Week

  • Malawi Extends Grower Registration Deadline

    Malawi Extends Grower Registration Deadline

    Photo: Taco Tuinstra

    Malawi’s Tobacco Commission (TC) has extended the registration and licensing period for tobacco growers until Jan. 31, reports The Nyasa Times.  

    TC spokesperson Telophorus Chigwenembe said the extension period will allow farmers who missed the December deadline to obtain the proper documentation.

    The regulator has also waved late registration penalties and will allow farmers to pay the associated fees after the sale of their tobacco this year.

    The TC said it would conduct its first crop estimates in February for the upcoming growing season.

  • Hong Kong Seizures Hit $288 Million in 2023

    Hong Kong Seizures Hit $288 Million in 2023

    Credit: Alven 0920

    Customs officers in Hong Kong reported that the agency had impounded more than 650 million black market cigarettes worth HK$2.25 billion ($287.8 million) last year, the largest annual cash value in more than two decades, according to media reports.

    The seized cigarettes would have generated about HK$1.54 billion in tax revenue, also a record, over the same period, according to an undisclosed source.

    Last week, authorities in Hong Kong said they were considering a further increase in tobacco duty.

    Last year’s total number of cigarettes seized was lower than the 732 million impounded in 2022, although the value was higher. Last year’s record seizure coincided with a 31 percent tobacco tax increase in February, which raised the average cost of a pack of 20 cigarettes by HK$12 to more than HK$70.

    A pack on the black market costs HK$18 to HK$38.

    The source said the confiscated tobacco products were stored in government warehouses currently, pending court proceedings or further investigations before being destroyed and buried at landfill sites.

    He added customs officials would boost efforts to combat crime syndicates that tried to take advantage of busy logistics services in the run-up to the Lunar New Year to smuggle cigarettes into the city.

  • Australian Gangs Torching Tobacco Shops

    Australian Gangs Torching Tobacco Shops

    Tobacco Reporter Archive

    Police in the Australian state of Victoria have arrested five individuals believed to be connected to the Finks outlaw motorcycle gang and a series of arson attacks on tobacco stores in Victoria.

    The arrests are a police response to the so-called tobacco wars, which have seen criminal gangs fight for control of the “significant source of income” generated by the sale of illicit tobacco.

    Victoria police Det. Insp. Graham Banks acknowledged community concern about the attacks in recent weeks and said the force was “turning the corner” with new intelligence, according to media reports.

    The arrests are related to the torching of four tobacco stores and a cafe between Christmas Day and Friday in Moe, Croydon, Altona, Altona North and Sunshine.

    On each occasion, police allege the offenders broke into the stores before setting them ablaze.

    Police report they found five vehicles believed to have been stolen when arresting the group, along with Molotov cocktails.

    “We believe they were preparing to do further attacks, so this is a substantial series of arrests,” Banks said. “This certainly impacts a syndicate that is driving this.

    “There is still a significant conflict between multiple different groups over control of a significant source of income. It will be an ongoing issue for several months, but we’re certainly turning the corner.”

  • Oliva Launches ‘Year of the Dragon’ Cigar

    Oliva Launches ‘Year of the Dragon’ Cigar

    Nicaragua-based Oliva Cigars has partnered with China Duty Free Group (CDFG) to launch a limited-edition “Year of the Dragon” premium cigar line.

    The MSRP has been set at $35 per cigar or $350 per box of 10 cigars. Production is limited to 1,500 boxes, and they are expected to go on sale in mid-February.

    Each box features a dragon design, paying homage to the creature and the spirit of the Chinese New Year.

    Credit: Oliva

    The Year of the Dragon is a Churchhill produced in Oliva’s factory in Esteli, Nicaragua, and features an Ecuadorian Habano sun-grown wrapper over a Nicaraguan binder and Nicaraguan fillers.

    “We are thrilled to introduce the Oliva Year of the Dragon Churchill Cigar in celebration of the Chinese New Year in cooperation with CDFG,” Oliva Cigars Export Manager Thomas Gryson said in a press release. “This limited-edition collection is a true embodiment of our dedication to quality and craftsmanship.

    “We have carefully curated this offering to provide aficionados with a unique and culturally significant cigar experience, making it a must-have for collectors and enthusiasts alike.”

  • Virginia Proposes Approved Product List

    Virginia Proposes Approved Product List

    Virginia has long been the epicenter of the tobacco industry; now, two bills that would ban flavored vaping products have been filed with the state’s General Assembly.

    Sponsors say Virginia should step in where Washington has been ineffective in blocking unregulated flavored e-cigarettes, such as Elf Bar disposables, off of store shelves.

    The bills, House Bill 1069 and Senate Bill 550, call for a fine of $1,000 a day for each product sold that the U.S. Food and Drug Administration has not authorized to be marketed in the U.S.

    The Attorney General would maintain a directory of legal products, much like Alabama and Louisiana. Products not listed in that directory could not be legally sold in Virginia.

    The bill states any retailer and wholesaler that sells or distributes any liquid nicotine or nicotine vapor product in the state is subject to scheduled or unscheduled compliance checks carried out by the Attorney General’s Office for enforcement purposes.

    Manufacturers must certify, in a filing with the Attorney General, that an FDA marketing authorization order covers their product or is exempt from that because it was sold in the U.S. before 2016 or subject to a premarket tobacco product application dating from before 2020.

    “It’s a public health issue,” said Del. Rodney Willett, who sponsored the House of Delegates bill.

    “They’re targeting kids with the flavors,” he said, according to media reports. “When I walk into a convenience store, I’m just stunned by the number of these products that are for sale.”

  • Innokin Launches ‘Trine’ Pod Vaping System

    Innokin Launches ‘Trine’ Pod Vaping System

    Image: Innokin

    Innokin launched Trine, a redefinition of the structure of pod systems, namely atomizer, control and battery (removable), according to a press release.

    Innokin claims the new 3-in-1 solution improves the reusability of the battery. 

    Trine features removable batteries for pod systems, extending the life cycle of devices far beyond that of an individual battery while enabling safe recycling, according to the release.

    Trine ensures safe battery disposal by integrating EcoDrain, a battery discharge technology setting a new industry standard as an eco-safe solution for battery disposal. It addresses the challenges associated with handling discarded batteries, ensuring safe battery discharge before recycling.

    The technology minimizes fire hazards and actively reduces the detrimental environmental impact caused by battery waste, according to the company.

  • Alpha Partners Bulgaria Can Acquire KT Intl.

    Alpha Partners Bulgaria Can Acquire KT Intl.

    Image: Wasan

    Alpha Partners Bulgaria has been cleared to acquire KT International, a Bulgarian tobacco grower and cigarette producer, reports SeeNews.

    The acquisition will not cause notable horizontal or vertical overlaps that could curb competition or lead to a dominant position in relevant markets, according to the Commission on Protection of Competition.

    The value of the acquisition was not disclosed. KT International’s registered capital amounts to $2.8 million.

    KT International is the only tobacco products manufacturer that sells on the Bulgarian market. Competitors export all of their products. Between May 2021 and May 2023, KT International held a 5 percent to 10 percent share in the Bulgarian cigarette distribution market.

  • Appeals Court Affirms Dismissal of PMI Suit

    Appeals Court Affirms Dismissal of PMI Suit

    Image: BillionPhotos.com

    The United States Court of Appeals for the 2nd Circuit on Dec. 26, 2023, affirmed a district court’s dismissal of a putative class action asserting claims against Philip Morris International that the company made false or misleading statements regarding both the scientific studies it conducted in support of an application to the Food and Drug Administration and the outlook for the company’s sales growth in Japanese markets, according to Lexology.

    The district court held that the plaintiffs failed to adequately prove falsity or scienter. The 2nd Circuit affirmed the dismissal, holding that the plaintiffs failed to adequately plead falsity.

    The court decided two questions of first impression in the 2nd Circuit, holding a securities fraud defendant’s statement that its scientific studies comply with a methodological standard that is published and internationally recognized, but stated in general and inherently subjective terms, is properly analyzed as a statement of opinion rather than a statement of fact, and holding that, whereas a securities fraud defendant’s statement expresses an interpretation of scientific data that is ultimately endorsed by the FDA, such a statement is per se “reasonable” (i.e., supported by “meaningful inquiry”) as a matter of law. 

    The plaintiffs alleged that PMI made misrepresentations in securities filings and public statements about clinical studies it conducted in support of an application to the FDA to sell IQOS in the U.S. and market IQOS as reduced risk. The plaintiffs also alleged that PMI made misleading statements about its growth projections in Japan regarding IQOS. The district court found that none of the challenged statements were false or misleading because all the challenged statements were true, inactionable puffery or inactionable statements of opinion. Furthermore, the district court found that the plaintiffs failed to establish the required strong inference of scienter, either by alleging facts showing motive and opportunity to commit fraud or strong circumstantial evidence of conscious misbehavior or recklessness. Accordingly, the district court granted the defendants’ motion to dismiss the plaintiffs’ first amended complaint and denied the plaintiffs’ motion for reconsideration. After the district court dismissed the plaintiffs’ second amended complaint, this time with prejudice, the plaintiffs appealed.

  • Teen Cigarette Use Declined Over 30 Years

    Teen Cigarette Use Declined Over 30 Years

    Image: pikselstock

    Cigarette smoking among U.S. adolescents (grades nine to 12) from 1991 to 2021 significantly decreased, according to a new study from Florida Atlantic University’s (FAU) Schmidt College of Medicine published in Ochsner Journal online ahead of print.

    Study findings include:

    • Ever use cigarettes significantly decreased from 70.1 percent in 1991 to 17.8 percent in 2021, an almost fourfold decline.
    • Occasional cigarette use significantly decreased from 27.5 percent in 1991 to 3.8 percent in 2021, a greater than sevenfold decline.
    • Frequent cigarette use significantly decreased from 12.7 percent to 0.7 percent, a greater than eighteenfold decline.
    • Daily cigarette use declined from 9.8 percent in 1991 to 0.6 percent in 2021, a greater than sixteenfold decline.

    While all grades experienced a significant decline in cigarette use, 12th graders consistently reported the highest percentage of occasional smokers compared to the other school grades, even in 2021. This finding suggests that while smoking has decreased across all age groups, older adolescents might still be more prone to experimenting with cigarettes than their younger counterparts.

    “The substantial decrease in cigarette use among U.S. adolescents spanning three decades is an encouraging public health achievement,” said Panagiota “Yiota” Kitsantas, senior author, professor and chair for the Department of Population Health and Social Medicine at the FAU Schmidt College of Medicine. “This decrease underscores the importance of continued vigilance, research and intervention to further reduce tobacco use and its associated harms.”

    Overall, inequalities in cigarette use among adolescents by gender have been present for decades. However, by 2021, discrepancies in smoking cigarettes by gender were diminished.

    With respect to race/ethnicity, by 2021, the decreases in cigarette consumption were even more pronounced among Black and Asian adolescents while the rates among white and Hispanic/Latino youth remained higher but were still significantly lower than the 1997 rates.

    “These results show reassuring trends, but they also suggest residual clinical and public health challenges that will require targeted interventions,” said Charles H. Hennekens, co-author, First Sir Richard Doll Professor of Medicine and senior academic advisor at the FAU Schmidt College of Medicine.

    “Quitting smoking significantly reduces risks of cardiovascular disease beginning within a matter of months and reaching the nonsmoker status within a few years, even among older adults. However, for lung and other cancers, reductions do not even begin to emerge for years after quitting and even after 10 years remain midway between the continuing smoker and lifelong nonsmoker. Thus, for reducing cardiovascular disease risks, it’s never too late to quit, but to reduce risks of cancer, it’s never too early.”

    Study co-authors are Maria Mejia, first author and an associate professor at Baylor College of Medicine; Robert S. Levine, professor of family and community medicine at Baylor College of Medicine and an affiliate professor at the FAU Schmidt College of Medicine; and Adedamola Adele, a recent biomedical science graduate at the FAU Schmidt College of Medicine.

  • Zimbabwe Farmers Start Season on a High

    Zimbabwe Farmers Start Season on a High

    Image: Taco Tuinstra

    As of Jan. 5, 2024, tobacco farmers in Zimbabwe have narrowed the planting gap to within 5 percent of the 2023 hectarage, according to The Herald. The hectarage in 2023 was 27 percent shy of 2022 figures.

    The area planted in for the 2023/2024 season has been smaller than the area for the previous season since Nov. 24, according to Tobacco Industry and Marketing Board (TIMB) statistics.

    Farmers planted a total of 103,652 ha under both dryland and irrigated tobacco across the country.

    This season, 112,916 growers have registered compared to 147,748 in the same period last year. Of registered growers, 93 percent are contracted, according to the TIMB.

    Zimbabwe’s government has extended the date for destruction of tobacco seedbeds to Jan. 15. This season’s planted area could exceed last year’s, according to some farmers.

    “As farmers, we are happy with the current weather pattern and believe that we can slightly exceed last year’s hectarage,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association, referring to the current wet weather pattern. “Tobacco requires water and a lot of heat units, which is good in terms of the quality of the crop.”

    “The combined influence of extended planting dates and wet weather conditions from around the Christmas period will likely result in this season’s planted area coming close to or surpassing last year’s,” said Victor Mariranyika, president of the Tobacco Farmers Union Trust. “We thank the government for moving planting dates in response to climate change with the crop generally looking good after the rains, which fell after Christmas.”

    In 2023, Zimbabwe saw record crop yield, and the sector expects another positive season this year. The country’s target for this year is 148,500 ha.

    “We are looking at two fundamentals: the hectarage and the potential yield, and with what is on the ground, we are likely to have a good season,” said Emmanuel Matsvaire, acting TIMB CEO. “Information that we have received so far shows that 136,000 ha have been planted, but we still have some districts that have not submitted the figures.”