Category: News This Week

  • Clifford Douglas to lead Smoke-Free Foundation

    Clifford Douglas to lead Smoke-Free Foundation

    Photo: FSFW

    The Foundation for a Smoke-Free World has named Clifford E. Douglas as president and CEO. Douglas most recently served as director of the University of Michigan Tobacco Research Network and as adjunct professor in the department of health management and policy at the University of Michigan School of Public Health. Prior to that he was the American Cancer Society vice president for tobacco control. Early in his career Douglas worked to eliminate smoking on airline flights and was an attorney and advisor in landmark lawsuits against tobacco manufacturers.

    Douglas has also managed a $6 million campaign to eliminate smoking on college campuses, and worked to help Americans understand the relationship between smoking and Covid-19. Douglas has served as the assistant director of the Coalition on Smoking and Health; he was also the associate director of the American Lung Association national public affairs office and has been the tobacco control advisor to the U.S. Assistant Secretary for Health and the U.S. Surgeon General.

    “For decades Cliff Douglas has been a strong and influential voice in the work to eliminate smoking in America and globally,” said Pam Parizek, chair of the Foundation board of directors, in a statement. “He understands both the science and societal elements of tobacco issues. His credentials are exceptional, and we are pleased he will lead our foundation effort to fund meaningful research and engage in evidence-based education efforts that help those at greatest risk stop smoking.”

    The Foundation is a nonprofit, independent grantmaking organization, dedicated to ending the illness and death caused by smoking.

    Douglas believes the Foundation is uniquely positioned to reduce smoking globally, “Our mission is to help end smoking in this generation,” he said. “I have committed myself to this mission for 35 years and look forward to leading this organization in innovative and impactful efforts to accelerate reductions in smoking prevalence and improve public understanding regarding the nature and health impact of nicotine, and as the U.S. Food and Drug Administration has highlighted, the continuum of risk among different tobacco and nicotine products. We will continue to be a strong and independent voice in helping people around the world find healthier lifestyles.”

    “Our mission is to help end smoking in this generation. I have committed myself to this mission for 35 years and look forward to leading this organization in innovative and impactful efforts to accelerate reductions in smoking prevalence.

    Clifford Douglas, CEO, FSFW

    “The Foundation is about to enter a new era under the leadership of Cliff Douglas,” said Parizek. “We certainly are appreciative of those who have previously supported our work, and going forward the Foundation remains fully committed to our smoking cessation and tobacco harm reduction efforts around the world.”

    Philip Morris International recently made a final grant to the Foundation and the pledge agreement between Philip Morris and the Foundation has been concluded. “Moving forward the Foundation will seek to collaborate with associations and institutions to accelerate our investments in life saving research projects based on the most up to date science,” said Parizek.

  • Marketing Denials for Flavored Vuse Alto

    Marketing Denials for Flavored Vuse Alto

    Image: Rangizz

    The U.S. Food and Drug Administration on Oct. 12 issued marketing denial orders (MDOs) to R.J. Reynolds Vapor Co. for six flavored e-cigarette products under its Vuse Alto brand. This includes three menthol-flavored and three mixed berry-flavored products, with each flavor being offered in three nicotine strengths.

    After reviewing the company’s PMTAs, the FDA determined that the applications lacked sufficient evidence to demonstrate that permitting marketing of the products would be appropriate for the protection of the public health, which is the standard legally required by the 2009 Family Smoking Prevention and Tobacco Control Act.

    Specifically, evidence submitted by the applicant did not demonstrate that the menthol- and mixed berry-flavored products provided an added benefit for adults who smoke cigarettes—in terms of complete switching or significant smoking reduction—relative to that of tobacco-flavored products that is sufficient to outweigh the known risks to youth, according to the agency.

    “We review each application on its own merits, and it’s the responsibility of the applicant to provide sufficient science to support the product they’re seeking to market,” said Matthew Farrelly, director of the FDA’s Center for Tobacco Product’s Office of Science. “If an application contained sufficient scientific evidence to meet the necessary public health standard, including a non-tobacco-flavored product, we’d authorize the product. But such evidence was lacking in this case.” 

    Vuse is the most commonly sold e-cigarette brand in the U.S., with Vuse Alto being its most popular sub-brand. Further, findings from the National Youth Tobacco Survey (NYTS) show that Vuse e-cigarettes, which are cartridge-based products, have been the second most commonly reported e-cigarette brand used by youth in the U.S. since 2021.  

    These actions are among many the FDA has taken to ensure any tobacco products that are marketed in the U.S. undergo science-based review and receive marketing authorizations by the agency. The FDA has received applications for more than 26 million deemed products and has made determinations on 99 percent of these applications.

    To date, the FDA has authorized 23 tobacco-flavored e-cigarette products and devices, which are the only e-cigarettes that currently may be lawfully sold or distributed in the U.S. These authorizations include other products under the Vuse brand, including tobacco-flavored Vuse Vibe and Vuse Ciro devices and accompanying cartridges. Applications for six tobacco-flavored Vuse Alto products remain under FDA review.

  • Habanos Operational Marketing Director

    Habanos Operational Marketing Director

    Beatriz Garrido García

    Habanos, S.A., the distribution arm of Cuban cigars, announced today that Beatriz Garrido García has been appointed as the new operational marketing director.

    Garrido has a degree in Scientific and Technical Information. She has been linked to the world of Habanos since 1997, starting as a commercial information specialist for the Operational Marketing Division, according to a press release.

    In 2001, she served as a market intelligence specialist belonging to the Strategic Marketing management.

    Later on, her career was consolidated and in 2009 she was appointed to the position of market supervisor at Tabacalera S.L.U., until 2013.

    She then began to work in commercial management as an international saleswoman. In 2017, she served as corporate director for Phoenicia Trading, the exclusive distributor of Habanos for Africa and Middle East.

    Later, she held the position of commercial director of Cigarte Ibérica based in Spain. Before being appointed as operational marketing director, Garrido served as international market supervisor.

  • Health Canada Licenses Nicotine Pouch

    Health Canada Licenses Nicotine Pouch

    Photo: Andrii

    Health Canada has granted Nicoventures Trading permission to sell Zonnic, a nicotine pouch that can help adult smokers quit smoking by delivering nicotine to the body. The product will be distributed in Canada exclusively by BAT subsidiary Imperial Tobacco Canada (ITCAN).

    “This is a first for Canada. No other nicotine pouch has received Health Canada’s authorization. Zonnic will give smokers a new option to help them quit smoking,” said ITCAN President and CEO Frank Silva, President in a statement.

    “We all agree, smoking is the cause of serious diseases, and we are committed to reducing the health impact of our business. The addition of Zonnic to our product portfolio is the next step in this journey.’’

    Zonnic, which temporarily relieves cravings and nicotine withdrawal symptoms, is licensed as a Natural Health Product and has been authorized for sale by Health Canada for use as a form of Nicotine Replacement Therapy (NRT). Zonnic contains no tobacco.

    As part of its license application, Nicoventures provided all information required by Health Canada, including a pharmacokinetics study that assessed the bioavailability of nicotine in Zonnic in comparison to other commercially available NRTs. The study showed that Zonnic nicotine pouches effectively deliver nicotine, and are comparable to other commercial brands.

    “Canada has a golden opportunity to achieve its reducing smoking rates below 5 percent by 2035. We just have to look at Sweden to see how it can be done. Sweden is about to become the first smoke free country,” said Silva. “This is being achieved by embracing new, less harmful nicotine products and creating a policy environment which encourages smokers to move away from smoking. With Canadian smoking rates at an all-time low, we believe that Zonnic can reduce rates even further, and help Canada get the same results as Sweden.”

    ‘’I am immensely proud to add Zonnic to our product portfolio that hit the shelves this week in convenience stores and later this year in pharmacies. Offering a range of less harmful products to smoking will benefit our adult consumers and society as a whole,’’ concluded Silva.

  • Illicit Sales Shrivel in Papua New Guinea

    Illicit Sales Shrivel in Papua New Guinea

    Photo: Anton Balazh

    The prevalence of illicit cigarettes in Papua New Guinea has declined remarkably, report the Papua New Guinea Post-Courier and The National, citing a report by the Manufacturers Council of Papua New Guinea (MCPNG).

    According to MCPNG CEO Chey Scovell, the share of tax-avoiding products has declined to 4 percent from 40 percent, allowing tax authorities to collect more revenue. “This is a massive drop, which has resulted in the PNG government taking back millions of kina in revenue from the illicit tobacco importers and sellers, when you consider that government was forgoing almost half a billion kina each year from untaxed illicit tobacco,” Scovell said. 

    He attributed this success to the implementation in 2019 of a new system to encourage manufacturers to produce and sell a smaller portion of their products at a reduced rate.

    “By allowing a 50 percent discount on taxed supplies, a real problem coming from high taxes has been addressed,” said Scovell. Previous high tax rates led to more illicit consumption, he noted. “Consumers in PNG faced prices as PGK1.20 ($0.32) for legal products compared to the PGK0.50 for illicit alternatives.”

    “Although there is still an ongoing battle to lower prices further, market observations reveal approximately 85 percent of consumers are shifting toward legal purchases,” Scovell said.

    “I appeal to the government to continue this so we do not go back to 2018 levels of illicit tobacco flooding our markets and causing the government and legitimate business to lose out,” he said.

  • California Flavor Ban Spawned Illicit Market

    California Flavor Ban Spawned Illicit Market

    Photo: sosiukin

    California’s 2022 ban on menthol cigarettes and flavored vapes has spawned a large, illicit marketplace for such products in the state, according to a study carried out WPSM Group.

    The researchers collected 15,000 empty discarded cigarette packs and 4,529 vapor product packages from May 1 through June 28 in 10 California cities. The study shows that the flavor ban has had limited effect on the access or demand for flavored vapor products or menthol cigarettes throughout the entire state. The results of the study include:

    • Of the vapor packs found, almost all (97.9 percent) were flavored.
    • Menthol (14 percent) and “menthol workaround” (7.1 percent) cigarettes combined made up 21.1 percent of the packs found compared to 24.5 percent of the California marketplace prior to the ban implementation.
    • More than one-quarter (27.6 percent) of products found were nondomestic products, which are not intended for the U.S. market. These products were primarily from U.S. Duty Free, Worldwide Duty Free, China and Mexico.
    • One cigarette brand, Sheriff, the fifth most prevalent brand found, is only intended for use outside the U.S.
    • The study indicated significant loss of state cigarette tax revenue. Among packs where it was possible to determine what tax stamp was applied, only 45 percent bore the California tax stamp.
    • This data suggests illicit cigarette markets are costing California as much as $1.27 billion annually in cigarette excise tax revenues—a funding source that supports important government programs.

    “This study provides further evidence that keeping products legal and regulated is the best path forward for tobacco policy,” said David Fernandez, vice president of government affairs and public policy of Altria Group, in a statement. “This data shows these products shifting in real time to illicit markets, which we know lack proper government oversight and other benefits of a well-regulated system.”

    The ban, which was implemented in December 2022, covers menthol cigarettes, flavored cigars, flavored smokeless tobacco and flavored vapor products.

  • Latvia to Raise Liquid Tax by 21 Percent Yearly

    Latvia to Raise Liquid Tax by 21 Percent Yearly

    Photo: alexlmx

    Latvia will increase excise taxes on e-liquids by an average of 21 percent annually until 2026. The excise tax rates on heated-tobacco products and combustible cigarettes are set to increase by 5 percent and 5.6 percent every year, respectively.

    Meanwhile, the tax on other “tobacco substitute” products, including nicotine pouches, will rise by 10 percent.

    Tobacco harm reduction advocates warned that the measure would negatively impact Latvia’s efforts to curb smoking by making safer alternatives less attractive.

    “Increasing the taxation of safer nicotine products will discourage smokers from switching and push users back to smoking,” said Alberto Gomez Hernandez, community manager of the World Vapers’ Alliance, in a statement.

    “The international evidence has shown that increasing taxation of e-cigarettes and e-liquids has always led to an increase in smoking, particularly among young adults and low-income groups.

    “Latvia should follow the steps of countries that are successfully reducing smoking rates by encouraging smokers to switch, such as the United Kingdom and Sweden, instead of making it more costly for them.”

  • American Vaping Association Shuts Down

    American Vaping Association Shuts Down

    Greg Conley

    The American Vaping Association (AVA) plans to shut down operations, reports Vaping360, citing a letter to supporters from AVA President Gregory Conley. The group was an advocacy organization representing both consumers and the independent industry, and it was in operation for almost 10 years.

    “While this may be the end of AVA, our common goal remains,” wrote Conley in the letter, “ensuring that smokers have access to safer alternatives. Despite rough times to come, I am hopeful for the future.”

    “As many of you may know, back in July 2022, I took on a new role as the director of legislative and external affairs for the trade association the American Vapor Manufacturers (AVM),” Conley wrote. “Since that time, AVA has gone dormant, although I have remained in my position as a volunteer to assist with administrative functions.”

    Following the dissolution of the AVA, Conley will continue in his role with the AVM, representing AVM members rather than his more universal spokesperson role with the AVA.

    The AVA’s remaining funds will be split into donations to the Consumer Advocates for Smoke-Free Alternatives Association and the Influence Foundation, which funds Filter’s online publication.

    “Looking ahead,” Conley wrote, “the vaping industry—and the tobacco and nicotine industry as a whole—face immense challenges, from byzantine regulatory hurdles to billionaire-funded misinformation campaigns. My work with the AVM will continue and is geared toward addressing some of these challenges head-on.”

  • Pacific Disputes ‘Shocking’ Tax Bill

    Pacific Disputes ‘Shocking’ Tax Bill

    Pacific Cigarette Co. co-founder and chairman, Adam Molai, during a virtual press conference on Oct. 11

    Pacific Cigarette Co. (PCC) of Zimbabwe has rejected a US$33 million tax bill (comprising separate assessments of US$19 million plus ZWD79 billion) and hopes an ongoing discussion with the national revenue collector will lead to an amicable settlement of the impasse.

    PCC went into voluntary business rescue soon after the Zimbabwe Revenue Authority (ZIMRA) in June handed it the assessment covering the periods 2018, 2019 and 2020.

    Adam Molai, co-founder and chairman of the Harare-based firm, told journalists during a virtual press conference on Oct. 11 that the bill was too high for any local company to be liable for over three years.

    “I don’t believe there is any company in Zimbabwe which over a period of three years can rack up a tax bill of over $20 million so that’s why we are disputing it,” he said.

    “This period that is being talked about is the period 2018, 2019 and 2020, but from the year we started operating until 2020 we have been audited every single year by ZIMRA, so it shows that we are compliant.”

    PCC”s production has, since 2005, been based on toll manufacturing, which meant it manufactured cigarettes for other firms.

    However, authorities have changed the way they calculate tax for toll manufacturers, which left PCC with obligations amounting to $33 million.

    The bill, Molai said, is “shocking” in terms of its magnitude.

    “Effectively what this assessment means was that if you look at a company [which for example] sells a product at $100, it has a cost of sales of $70 which is raw materials,” he said.

    “ZIMRA came in and said the $70 of raw materials is also income and because ‘we are deeming it income, we are going to levy VAT on it and after levying VAT because it is 2018, 2019 and 2020 we are also going to levy interest and then we are also going to levy a penalty for each of the years,’ so effectively what that would mean is Pacific produces their cigarettes at a price of zero. If our cost of sales is also deemed income it means our cost of production is zero, our raw materials are for free and that is what we are disputing.”

    PCC says it pays an average of $3 million in taxes yearly and has invested up to $250million since it started operating in 2002 as a threshing company.

    ZIMRA has 90 days within which to respond to an objection but before that period had elapsed, it, Molai claimed, issued a garnishee order against PCC.  The tax collector also wrote to the company’s clients asking them to pay all they owed PCC to ZIMRA instead.

    “That closes all our income streams and that is when we took the decision to say the most responsible decision is to place the business under business rescue,” said Molai.

    Responding to a question from Tobacco Reporter, Molai expressed confidence that ZIMRA will hand down a favorable decision but if it turns out negative, the company will appeal to the courts.

    “The day that the contingent liability is removed off our balance sheet, we will have an extremely strong balance sheet,” he noted.

    “The good thing about our company that is different from other companies that go into business rescue is we don’t have multiple challenges to address, we only have one single challenge to address which is this dispute.”–Daisy Jeremani

  • Disposables Approach 40 Percent of Market

    Disposables Approach 40 Percent of Market

    Photo: Alexander Gavrilichev

    Disposable e-cigarettes account for almost 40 percent of the vape sector, according to new analysis from ECigIntelligence.

    After an initial boom in the United States, the disposables market is now growing at a faster pace in other countries.

    Consumers are attracted to disposables mainly by convenience and low price, but there are variations in products internationally.

    For example, due to the EU Tobacco Product Directive’s (TPD) restrictions on the amount of e-liquid in vape products, the size of disposables has increased much more in non-TPD countries.

    On the other hand, in some TPD markets there has been an increase in zero-nicotine products, as these are allowed to have a larger tank capacity.

    Another notable recent development is the emergence of products that address the environmental concerns associated with disposables, for example products made mostly of paper, or with biodegradable components.

    To provide further insight into the global disposables market, ECigIntelligence has now launched a disposable e-cigarettes tracker.

    The data shows how disposable vape pricing, technical features, flavors and nicotine strengths have developed since 2020 across brands carried by leading online retailers. Users can even select specific models and see their closest competitors in the market in terms of features such as number of puffs, e-liquid capacity, battery capacity, and physical shape.

    “The disposables market has ballooned at such a rate that there is an urgent need for reliable, in-depth data,” said Tim Phillips, managing director of Tamarind Intelligence, which produces ECigIntelligence. “This new tracker will provide the intelligence that players at every level in the industry have been crying out for as they formulate their strategy on disposable products.”