TobaccoReporter logo

Category: News This Week

  • New Indonesian Factory Fuels KT&G’s Expansion

    New Indonesian Factory Fuels KT&G’s Expansion

    KT&G told Hankooki.com today (November 12) that its Indonesian factory is scheduled to be completed within the month and should begin full-scale operations in February 2026. The 190,000-square-meter facility, which will produce cigarettes and capsule products for export across Southeast Asia and beyond, is expected to boost KT&G’s annual production capacity in Indonesia to 35 billion cigarettes, making it the company’s largest overseas manufacturing base.

    The move follows the launch of KT&G’s Kazakhstan plant in April, which can produce 4.5 billion cigarettes annually and serves as a key export hub for the Eurasian market. With both sites operational, KT&G aims to produce over half of its total output overseas in the medium to long term, improving global supply efficiency.

    The company also plans to expand into new markets like Jordan and Bangladesh, while growing its next-generation product (NGP) segment and nicotine pouch business through a strategic partnership and joint acquisition with Altria.

  • Pyxus Posts Strong Margins, Higher Guidance for Q2 2026

    Pyxus Posts Strong Margins, Higher Guidance for Q2 2026

    Pyxus International reported solid results for the second quarter 2026 ended September 30, with sales rising to $570.2 million from $566.3 million a year earlier. CEO Pieter Sikkel said the performance reflects strong execution and positions the company for a robust second half of fiscal 2026. Gross margin improved to 15.4% from 13.3%, “driven by a better product mix and higher returns on current crops.” Operating income rose to $46.7 million from $33 million, while adjusted EBITDA increased to $54.8 million from $44.3 million. Net loss narrowed to $900,000, compared to $3.2 million a year ago.

    Sales and other operating revenues for the first half of fiscal 2026 decreased $122.2 million, or 10.2%, when compared to $1.2 billion for the same period last year. “The decrease was due to the impact of lower carry-over sales from the prior fiscal year not being fully offset by the acceleration of shipments from the current crop.”

    Tobacco inventory rose to $1.1 billion, reflecting larger crops in Africa and South America, while uncommitted inventory remained low at 2.7% of total processed stock, signaling steady demand. The company reduced its operating cycle to 167 days from 179 days last year and reported strong liquidity with no borrowings on its $150 million credit line.

    Based on its performance and improved visibility, Pyxus raised its full-year sales guidance to $2.4–$2.6 billion (from $2.3–$2.5 billion) and tightened its adjusted EBITDA range to $215–$235 million.

  • BAT Launches Year-End Vape Promotion in Korea

    BAT Launches Year-End Vape Promotion in Korea

    Today (November 12), BAT Rothmans announced a promotion for its Glo Hyper series in South Korea, running both online and in-store through the end of the year. First-time buyers can purchase devices from the Glo Hyper Series, including the flagship Glo Hyper Pro, at special discounted prices. “The Hyper Pro features an EasyView screen and TasteSelect Dial for personalized heating control, while all neo sticks use StickSeal technology to prevent tobacco leaf residue.”

    A BAT Rothmans spokesperson said the year-end promotion aims to let more consumers experience the brand’s “innovative technology and differentiated experience at a reasonable price,” at the time of the year when colder weather drives people indoors. The company said surveys show odor reduction is a leading reason for smokers switching to vapes.  

    Government data shows e-cigarette sales in South Korea rose 8.3% year-on-year, capturing 18.4% of the total tobacco market in 2024—up from just 2.2% in 2017.

  • Duran Cigars Announces U.S. Return

    Duran Cigars Announces U.S. Return

    Today (November 12), Duran Cigars announced its return to the U.S. market, opening its new headquarters and distribution center in Little Havana, Miami, a location that is also a retail cigar shop and lounge. The new space “serves as the brand’s American home base, connecting its global operations to the heart of Miami’s cigar culture.”

    Founded in 2013, Roberto Duran Premium Cigars made its debut at the IPCPR Trade Show in Las Vegas, “introducing a portfolio that embodied the best of Cuban heritage and modern craftsmanship.” With a tobacco farm in Ecuador and a factory in Nicaragua, company founder, Roberto Pelayo Duran Sr., decided to focus the company’s efforts on the European and Asian markets. In its U.S. return, the company welcomes Duran’s son, Roberto Duran Jr., to the business, who will serve as a marketing and sales manager.

    “Concentrating on our farm and global markets allowed us to perfect our production and strengthen our foundation,” said Duran Sr. “Now, with my son joining the business, we have the right team and structure in place to reestablish our presence in the United States while continuing to grow internationally.”

  • More Serious Charges Remain in Arkansas THC Vape Suit

    More Serious Charges Remain in Arkansas THC Vape Suit

    An Arkansas federal judge dismissed parts of a proposed class action alleging a retailer, vape manufacturer, and others conspired to sell vaping products containing THC above legal limits. While warranty claims and the Drug Dealer Liability Act counts were thrown out, the court allowed fraud, negligence, racketeering (RICO), and fraudulent transfer claims to move forward.

    The case involves allegations that products labeled as under the 0.3% THC threshold actually exceeded that limit and that fraudulent lab certificates were used. Cigarette Store LLC, Savage Enterprises LLC, and ACS Laboratory LLC were among those named in Smith et al. v. Cigarette Store LLC et al.

  • Bill Introduced to Allow FDA to Destroy Illicit Chinese Tobacco Products

    Bill Introduced to Allow FDA to Destroy Illicit Chinese Tobacco Products

    Last week, Senator John Cornyn and Congresswoman Beth Van Duyne, joined by Senator Martin Heinrich and Congresswoman Debbie Dingell, introduced the “Ensuring the Necessary Destruction of Illicit Chinese Tobacco Act,” also referred to as the “END Illicit Chinese Tobacco Act” (END). The legislation would amend the Federal Food, Drug, and Cosmetic Act and allow the Secretary of Health and Human Services the authority to seize and destroy adulterated, misbranded, or counterfeit tobacco products, including vapes and e-cigarettes, imported from China, specifically giving the U.S. Food & Drug Administration (FDA) authority to do so.

    “By giving the FDA destruction authority over these imports, this legislation would turn off the spigot of illicit e-cigarettes and vapes flowing from China and address the public health crisis sweeping across our nation,” Sen. Cornyn said.

    Lawmakers cited the public health risks posed by counterfeit products, which dominate illicit youth-used e-vapor brands. The END Act would extend the FDA’s existing destruction powers, currently applied to certain drugs and medical devices, to tobacco products.

    “We have seen too many illegal vapes slipping through the enforcement cracks, posing health and safety risks to Americans,” said Rep. Van Duyne. “The END Act will give federal agencies the tools that they need to destroy these counterfeit or misbranded goods before they reach our shelves.”

    The bill is supported by major health organizations—including the Campaign for Tobacco-Free Kids, American Heart and Lung Associations—and industry groups like 7-Eleven and Altria.

    The bill has been introduced, but no date for markup or committee hearing has been publicly posted thus far.

  • Arturo Fuente Secures New Cameroon Wrapper Supply Through Universal

    Arturo Fuente Secures New Cameroon Wrapper Supply Through Universal

    Arturo Fuente confirmed a new partnership with Universal Leaf Tobacco Co. as its new Cameroon wrapper supplier following its split from longtime partner M. Meerapfel Söhn, according to Cigar Aficionado. Company leader Carlos Fuente Jr. spoke with the magazine recently at Big Smoke in Las Vegas, and assured consumers the brand will have ample Cameroon wrapper supply for years to come. He said the first shipment arrived at Fuente’s Dominican Republic factory.

    In a video released by the company, Fuente Jr. addressed recent rumors about shortages, emphasizing Fuente’s long-term reserves and commitment to quality.

    “There’s a big concern from rumors that have been spread about us not receiving Cameroon and us not having Cameroon available for your favorite cigars,” he said. “Early this week, we received an entire 40-foot container, [a] refrigerated container of African Cameroon wrapper. My friends, we have African Cameroon wrapper for years to come.”

  • Irish Tobacco Hike ‘Plucked Out of the Air,’ Court Told

    Irish Tobacco Hike ‘Plucked Out of the Air,’ Court Told

    The Convenience Stores & Newsagents Association (CSNA) has challenged new tobacco licensing fees in Ireland, claiming they are “plucked out of the air” and disproportionately impact smaller retailers. The 2024 regulations, introduced under the Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023 by former health minister Stephen Donnelly, raise fees from the old €50 one-off registration to €1,800 for combined tobacco and nicotine products, payable on every renewal. Retailers cannot pass the cost to consumers.

    CSNA argued the fees are arbitrary, lack evidential basis, and exceed the minister’s powers, while the government contends the fees are part of a long-standing policy to reduce tobacco availability. In court, CSNA sought to cross-examine Claire Gordon, Department of Health principal officer, over her affidavit explaining the policy, but Justice Rory Mulcahy rejected the request, noting the retailers can challenge her evidence but cannot investigate beyond it.

  • Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    The Action for Economic Reforms (AER) and Philippine government officials oppose bills seeking to cut tobacco excise taxes, warning the move could increase smoking rates and reduce government revenues without addressing illicit trade. A joint study by AER and Johns Hopkins Bloomberg School of Public Health argues that high tobacco taxes do not drive illicit trade, but it is instead a product of weak enforcement and local governance.

    AER projects up to two million new smokers by 2035 and P167 billion ($2.8 billion) in lost revenue if taxes are lowered. Officials, including Senator Risa Hontiveros-Baraquel and BIR Commissioner Romeo Lumagui, stressed that stronger enforcement, a nationwide licensing system, and an upgraded track-and-trace program are key to curbing illicit tobacco sales and protecting public health.

  • PM Korea’s IQOS ‘Seletti Edition’ Sells Out in First Week

    PM Korea’s IQOS ‘Seletti Edition’ Sells Out in First Week

    Philip Morris Korea announced that its limited edition IQOS ILUMA i × Seletti collection, launched in collaboration with Italian design brand Seletti, sold out nationwide within a week. Pre-sales began October 28 for IQOS Club Platinum and Gold members, with the official release on October 30 through IQOS.com and directly operated stores. The edition, featuring black and gold designs with Seletti’s signature patterns, quickly became a collector’s item, with the Prime model selling out on the first day of pre-sale.

    Philip Morris Korea highlighted that the strong response reflects consumer appreciation for the brand’s design sensibility and value, not just sales performance. The success follows earlier limited editions like Minera, Neon, and Steve Aoki, underscoring IQOS’ ongoing strategy of blending style with technology to enhance consumer experience.