Category: News This Week

  • Two Sentenced, Tanker Seized in Bahrain Over 4 Tons of Illegal Tobacco

    Two Sentenced, Tanker Seized in Bahrain Over 4 Tons of Illegal Tobacco

    The Second Minor Criminal Court in Bahrain sentenced two people and seized a tanker, all connected to an attempt to smuggle four tons of tembak into the country. The first defendant was sentenced to three years in prison and fined BD 60,000 ($159,000) and the second defendant was sentenced to six months in prison for attempting to import the banned tobacco.

    Customs officials discovered the tobacco “cleverly hidden inside the tanker” being brought through the seaport. The Tax Evasion Crimes Unit launched an investigation, and the second defendant admitted they had falsified documents in an attempt to bypass import restrictions.

  • STG Posts Mixed Q2, Reaffirms 2025 Outlook

    STG Posts Mixed Q2, Reaffirms 2025 Outlook

    Scandinavian Tobacco Group A/S (STG) reported Q2 2025 net sales of DKK 2.4 billion ($384 million), down 0.2% year-on-year, with organic sales slipping 4.1%. EBITDA before special items was DKK 499 million ($79.8 million), reflecting a margin of 21.1%, compared with 24.5% a year earlier.

    CEO Niels Frederiksen said performance was affected by tariffs, product mix, and the discontinued distribution of ZYN in the U.S., but noted gains in handmade and machine-rolled cigars, as well as double-digit growth in nicotine pouch brand XQS.

    Despite margin pressure, STG reaffirmed its full-year 2025 guidance, targeting net sales of DKK 9.1–9.5 billion ($1.46 billion to $1.52 billion), an EBITDA margin of 18–22%, and free cash flow of DKK 0.8–1.0 billion ($128 million to $160 million).

  • Bangladesh: Couple Jailed for Fake Bidi Band-Rolls

    Bangladesh: Couple Jailed for Fake Bidi Band-Rolls

    A court in Rangpur, Bangladesh, on Wednesday (August 27), sentenced a couple to 14 years in prison for possessing counterfeit bidi band-rolls, a key tax stamp for the country’s cheap cigarette market. The 28-year-old man and his 23-year-old wife were arrested in January 2021 with a large haul of fake rolls. Judge Md Moshiur Rahman Khan also fined each Tk 10,000 ($7,200), with two months’ additional jail if unpaid.

    Authorities said the case highlights ongoing enforcement against counterfeit tobacco products, which undermine government revenue and fuel the illicit trade.

  • Serbian Man Charged in Bulgaria for Smuggling Shisha Tobacco

    Serbian Man Charged in Bulgaria for Smuggling Shisha Tobacco

    Bulgarian prosecutors charged a 35-year-old Serbian man with smuggling 302.4 kg of shisha tobacco across the Kalotina border crossing. Customs officials said the driver declared the load as separators bound for Türkiye, but an X-ray inspection uncovered 62 boxes of undeclared tobacco hidden in the truck. The driver is being held for 72 hours while prosecutors seek his remand in custody.

  • Singapore Vape Ban is Tourism Opportunity for Indonesia

    Singapore Vape Ban is Tourism Opportunity for Indonesia

    Officials in Batam, Indonesia say Singapore’s strict ban on vaping could boost cross-border tourism, as Singaporeans seek looser regulations just a 45-minute ferry ride away.

    Batam Tourism Agency head Ardiwinata told The Jakarta Post that restrictions in Singapore historically drive residents to neighboring Batam, citing past examples where tight rules created new tourism opportunities. “As long as it does not violate our regulations, they can choose Batam,” he said.

  • Indonesia Cracking Down on Ketamine-Laced Vapes

    Indonesia Cracking Down on Ketamine-Laced Vapes

    Indonesia’s Food and Drug Monitoring Agency (BPOM) has vowed strict enforcement against electronic cigarette products found to contain ketamine, a powerful anesthetic increasingly misused as a recreational drug. BPOM Chief Taruna Ikrar said the agency’s mandate focuses on harmful substances, not just the form of the product.

    “The Agency also has the authority to take action, not because of the cigarette or vape, but because it contains harmful substances,” he told reporters in Jakarta.

    The move follows seizures by the National Narcotics Agency (BNN), which recently intercepted counterfeit ketamine, synthetic marijuana, and vape pods allegedly laced with narcotics. Authorities warned that psychoactive substances disguised in vape products are spreading rapidly in Indonesia.

    BPOM confirmed that if ketamine is detected, it can immediately launch legal proceedings, while BNN continues testing vape brands circulating in the market.

  • U.S. Judge Grants Recognition to $23B Canadian Tobacco Settlement

    U.S. Judge Grants Recognition to $23B Canadian Tobacco Settlement

    A New York bankruptcy judge yesterday (August 26) approved U.S. recognition of Imperial Tobacco Canada Ltd.’s restructuring plan, a key step in a landmark C$32.5 billion (US$23.6 billion) settlement resolving decades of Canadian tobacco litigation. Judge John P. Mastando III granted Chapter 15 approval without objection, clearing the way for the settlement, one of the largest restructurings in Canadian history, to take effect across both jurisdictions.

    The deal, approved by an Ontario court in March, involves Imperial, JTI-Macdonald Corp., and Rothmans Benson & Hedges Inc. It will be funded over 20 years, beginning with a C$12 billion (US$8.7 billion) upfront payment, followed by profit-sharing contributions.

    The agreement resolves more than a trillion Canadian dollars in claims from class actions and provincial governments over smoking-related health costs.

  • Japan Tobacco to Issue Euro-Denominated Subordinated Bonds

    Japan Tobacco to Issue Euro-Denominated Subordinated Bonds

    Japan Tobacco Inc. said today (August 27) its foreign subsidiary, JT International Financial Services B.V. (JTIFS), will issue Euro-denominated Ordinary Subordinated Guaranteed Fixed Rate Resettable Capital Securities due 2055. The new hybrid-style subordinated bonds, which combine debt and equity characteristics, will be offered in international markets. Proceeds will be used to refinance JTIFS’s outstanding Euro-denominated deeply subordinated guaranteed bonds due 2081, for which a tender offer has been launched.

    JT said the move will help strengthen the group’s financial base, noting that rating agencies may recognize the new issuance as having partial equity credit.

  • PM South Africa Pushes Harm Reduction in Tobacco Bill Debate

    PM South Africa Pushes Harm Reduction in Tobacco Bill Debate

    Philip Morris South Africa (PMSA) urged lawmakers on Tuesday (August 26) to adopt a science-driven, harm reduction approach in the pending Tobacco Products and Electronic Delivery Systems Control Bill. PMSA argued that the same harm reduction principles that helped South Africa curb HIV/AIDS could accelerate declines in smoking rates if applied to tobacco. Executives told Parliament’s Health Committee that smoke-free alternatives like heated tobacco, e-cigarettes, and oral nicotine are far less harmful than combustible cigarettes, citing global studies and international precedents.

    “The quit or die approach has not been proven to be effective, and we know it will not work,” said Themba Mathebula, PMSA’s director of external affairs. “Without a doubt, smoke-free products can give smokers a fighting chance, not just to survive, but to quit smoking for good.”

    The company called for a risk-proportionate framework that regulates traditional cigarettes more strictly than reduced-risk products, while tightening youth access and banning marketing that could appeal to minors. PMSA said it has submitted extensive scientific data and is committed to making cigarettes obsolete.

    “It is about 19 books’ worth of research that undeniably shows that smoke-free products are less harmful alternatives for adult smokers who make the choice to continue smoking,” said Buhle Binta, PMSA head of Scientific Engagement. “Scientific evidence needs to be the North Star that informs our health policies.

  • China’s North Korean Smuggling Problem Not Gone Yet

    China’s North Korean Smuggling Problem Not Gone Yet

    While a report from Daily NK last week said China’s crackdown on smuggled cigarettes from North Korea ground the illegal activities to a halt, a story yesterday (August 26) from Radio Free Asia (RFA) suggests otherwise. Smugglers and traders told the news outlet that the combination of surging demand and lenient penalties (compared to other contraband) makes the trade highly profitable.

    Residents in North Korea’s Yanggang province told RFA that the cross-border trade, which began about two years ago, has expanded sharply in recent months. Smugglers move 20–50 boxes per trip, each containing 500 packs, earning around 50 yuan ($8) profit per box.

    While legally imported North Korean brands such as Chosun are sold mainly as pricey tourist souvenirs, smuggled cigarettes are mostly in unmarked packaging and then rebranded by Chinese manufacturers in Jilin province and sold as domestic products. North Korean cigarettes cost as little as 2,500–3,500 won ($0.36–0.50) per pack, far cheaper than Chinese brands. According to RFA, factories such as Korea Sonbong General Corporation and Paeksan Cigarette Company supply the bulk of production near the border.

    China, home to more than 300 million smokers, consumes about one-third of the world’s cigarettes, making the black market highly lucrative. Sources say the smuggling trade is expected to keep growing due to the low cost of North Korean tobacco and the relatively light punishments for offenders.