Category: News This Week

U.S. Premium Cigar Imports Drop

Credit: Timothy S. Donahue
The Cigar Association of America (CAA) has released a report showing that U.S. imports of premium cigars from January-July 2023 are down 3.4 percent compared to the record pace that was set in 2022.
Through the end of July, CAA estimates the U.S. imported 252.81 million cigars, compared to 261.63 million in the same period during the year before.
While the numbers are down compared to last year, the trend line for the first seven months of the year is actually closer to 2022 than the Q1 numbers. More importantly, the numbers are still significantly above pre-Covid-19 levels, reports Halfwheel.
On a month-by-month basis, imports rose in four of the seven months, though March and April were down a combined 11.7 million cigars, or 14.41 percent compared to 2022. Addittionally, there were 6.5 million more cigars imported in May and July, or 8.33 percent over last year.
Nicaragua remains the dominant supplier of premium cigars to the U.S., accounting for roughly 55 percent of imports through the first seven months, according to CAA. However, those imports are down 4.2 percent compared to last year.
The CAA breaks down individual imports from seven countries and all were down except the Dominican Republic, which the group estimates has shipped 3.37 million more cigars compared to the same period last year, an increase of 4.8 percent.
September 28, 2023
Reynolds Expands American Snuff Facility

Image: Reynolds
Reynolds American Inc. announced the opening of the recently expanded American Snuff Company (ASC) operations facility in Clarksville, Tennessee. The investment in the facility will position the company for future growth and has already added over 70 roles to the facility’s workforce, with plans to add more in the coming months.
ASC celebrated the newly enhanced space with a ribbon-cutting ceremony on Tuesday, Sept. 26, 2023. ASC’s significant investment in the property will increase certain production capabilities, optimize existing processes and allow for the installation of additional processing and packaging lines.
“American Snuff Company has a long history of operations in Clarksville, and we are proud to further invest in our workforce and production capabilities at the site,” said David Waterfield, president and CEO of Reynolds, in a statement. “This expansion and considerable investment reflect our focus on delivering long-term, sustainable growth for the future of our business.”
The site will further accommodate research and development and create capacity for additional shipping, receiving and tobacco curing. Additionally, the expanded site will include modernized quality labs, maintenance shops and employee areas.
The Clarksville site expansion follows a strategic review of Reynolds’ U.S. operations that spanned several years. Historically, the facility used processed tobacco from regional farmers before being sent to other ASC factories for production. This move will bring processing and finished goods production under one roof.
ASC Clarksville is the Reynolds organization’s second-largest production facility in the U.S.
September 28, 2023
France’s Last Cigarette Factory Closing

Image: Smeilov
The last cigarette-making factory in France is set to close by the end of the year, according to the site’s owner, reports The Straits Times.
The Manufacture Corse des Tabacs (Macotab) is located in Corsica, and it manufactures cigarettes for Philip Morris, which recently ended the contract.
The factory is owned by SEITA, the former French monopoly. Now, around 30 employees work at the factory, down from 143 in the 1980s.
In 2019, SEITA closed France’s tobacco processing factory located in the traditional growing region of the Dordogne.
Legislation to reduce smoking and its related health issues has led to reductions in cigarette sales. Majority of European tobacco product production takes place in Germany and Poland.
September 28, 2023
Healthcare Bill Could Raise Tobacco Taxes

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The proposed U.S. Care for Moms Act would support the maternal health workforce, promote access to prenatal and postpartum care and provide resources to mothers as well as increase the excise tax on tobacco products, according to CSP.
The National Association of Tobacco Outlets (NATO) outlined the tobacco-related proposals in the act: increasing tax on cigarettes from $1.01 to $2.02 per pack; implementing a new e-cigarette tax that would equalize the tax on cigarettes; increasing the tax on moist snuff from $0.11 per 1.2 oz tin to $2.02 per can; doubling the tax on small cigars from $50.33 to $100.66; implementing a new weight-based tax methodology on large cigars; doubling the tax on roll-your-own; and equalizing the tax on chewing tobacco and pipe tobacco to tax them like cigarettes.
Similar tax legislation has failed in past congressional sessions, according to the NATO.
The Care for Moms Act also includes provisions to establish a state-based perinatal quality collaborative grant program, establish regional centers of excellence to tackle implicit bias and promote cultural competence among health professionals, support federal efforts to grow and diversify the doula workforce and extend Medicaid coverage for postpartum mothers in all 50 states.
September 27, 2023
Greenbutts Partners with H.I.E. Handelsgesellschaft

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Greenbutts, a science-driven leader in biodegradable filter technology, has entered into a strategic agreement with H.I.E. Handelsgesellschaft mbH effective Sept. 15, 2023, according to a press release. H.I.E. Handelsgesellschaft mbH is appointed as Greenbutts’ exclusive distributor for Poland in the European Union.
Tadas Lisauskas, CEO of Greenbutts, said, “We are confident that our partnership with H.I.E. Handelsgesellschaft mbH will provide Greenbutts customers in Poland with an outstanding quality and exceptional customer service. We seek to achieve strong supply chains by providing them with Greenbutts biodegradable filter rods and filter substrate, offering an expanded range of innovative filter material and local stock for quicker deliveries.”
Marc Sohns, managing director of H.I.E., added that “As the industry is facing transition by single-use plastic legislation and strengthening environmental commitments in the European Union, we are very pleased to partner with Greenbutts to offer our customers a certified biodegradable filter solution. We will ramp up our supply chain of sustainable substrate in 2024 for our clients in Poland and be in a position to provide them supply and support for the Greenbutts material. The Greenbutts partnership will continue to expand the H.I.E. product offerings to supply the materials that our customers need to be successful.”
September 26, 2023
Kaival Brands Earns Initial Royalties from Philip Morris

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Kaival Brands Innovations Group, parent to Bidi Vapor, received its first royalty payments from Philip Morris International for marketing Bidi Vapor products in multiple countries.
In a press release, Kaival Brands announced that PMI achieved a record level of monthly sales in July for its Bidi products that are marketed by PMI under the names VEEBA and VEEV NOW.
Eric Mosser, CEO and president of Kaival Brands, said he was pleased to see the positive trajectory of sales and royalties to the company.
“We are proud to work with Philip Morris and remain steadfast in our commitment to the responsible commercialization of better alternatives to cigarettes for adults who would otherwise continue smoking,” he said.
September 26, 2023
Philippines Ag Dept. Supports Intercropping

Image: Yü Lan
The Philippines’ Department of Agriculture (DA) and local government units in tobacco producing areas are urging intercropping on tobacco fields to give farmers extra income and to make up for lost markets caused by smoking concerns, according to the Philippine News Agency.
High-value crops, such as rice, corn, garlic, onions, tomatoes and bamboo, can be planted alongside tobacco to help expand farmer income, according to DA Undersecretary Deogracias Victor Savellano. Intercropping will also help contribute to the Philippines’ food security.
Despite changing views toward smoking and tobacco, Savellano stated that the Department of Agriculture along with the National Tobacco Administration (NTA) must sustain the domestic tobacco industry as it affects about 2.2 million Filipinos and their livelihoods.
The domestic tobacco market generates billions in excise taxes annually, much of which funds the universal healthcare program.
“The government cannot allow the tobacco industry to sunset despite changes in consumers’ attitude toward cigarettes. However, we are now focusing on the export market … to make up for any decline in revenues generated domestically,” Savellano explained.
The NTA is pressing for more strict government responses to smuggling and other illicit tobacco activity. According to Robert Ambros, NTA regulatory head, government revenue loss due to illicit tobacco trade is estimated to be over PHP30 billion ($528.2 million) by the end of 2023.
“These past years, we had seen so much change in our health policies that affected the tobacco industry,” said President Ferdinand R. Marcos Jr. in an August speech delivered on his behalf by his nephew, Ilocos Norte Governor Matthew Manotoc. “As such, we must seek ways to protect the livelihood of thousands of our tobacco farmers.”
September 25, 2023
BAT to Invest Further in Bangladesh

Image: Rumana
BAT Bangladesh plans to invest BDT1.5 billion ($13.6 million) in its Savar factory site in order to scale up productivity to meet growing demand, according to The Business Post.
The board of directors approved the decision at its Sept. 24 board meeting.
The investment will be generated from internal sources and bank financing based on the company’s cash flow, according to the Dhaka Stock Exchange disclosure.
BAT Bangladesh is constructing a bonded warehouse for storage of wrapping material, leaf and finished goods, according to the disclosure. The company also invested in the electrical, fire detection and protection systems, air conditioning and ventilation systems, IT systems and security systems as well as construction of site ancillary facilities for employee well-being and factory services, the construction of a reinforced cement concrete road and creation of an underground drainage system.
Earlier this year, the company invested in the Savar factory to create contingency capacity and take advantage of upcoming export opportunities.
BAT Bangladesh is headquartered in Dhaka and has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.
September 25, 2023
Malawi Tobacco Control Audit Exposes Overages

The Tobacco Commission’s headquarters in Lilonge | Photo: Taco Tuinstra
A board of commissioners-ordered internal investigative audit of the Malawi Tobacco Commission exposed “extravagant over-expenditure and other stupendous financial irregularities” of the 2022–2023 fiscal year budget, according to the Nyasa Times.
Internal Audit Manager Rhoda Zaniku noted in her summary that the commission overspent by MWK22 million ($20,339.04) for the enforcement, liaison, monitoring and evaluation budget, indicating a 357 percent negative variance. The commission’s majority of votes were overutilized by more than the planned activity budgets.
Billboards worth MWK25 million were not budgeted for the 2022–2023 fiscal year. They represented 89 percent of the actual cost of enforcement, liaison, monitoring and evaluation charges. The billboard supplier, Optima Group, requested an 80 percent advanced payment—the commission granted 70 percent “contrary to the Secretary of Treasury instructions, which banned suppliers demanding payments before delivering goods or services.”
Travel and media budgets were also overspent as well as the budget for tobacco consultative meetings and the budget for motor vehicle running maintenance. The internet and VPN budget was overused as well. The audit also showed that the commission had no policy or guidelines on how to use afforestation levy money—only using MWK4.4 million of MWK8 million to procure tree seedlings, with the rest used on materials and expenditure for the National Tree Planting Day event.
“The audit exercise noted that there was no evaluation process when procuring some goods and service [and] that the IPDC [Internal Procurement and Disposal Committee] used the fixed team to evaluate process of procuring of goods and services,” the audit report said.
Of the commission’s budget votes, 40 of the 72 were spent in excess in violation of treasury regulations and the Public Finance Management Act.
Zaniku stated that the Tobacco Commission’s management “must abide to the approved budget for their planned activities or seek approval from the relevant authorities stipulated in the Public Finance Management Act and other statutory guidelines.”
September 25, 2023
UK Prime Minister Considering Cig Ban

Image: Pcess609
U.K. Prime Minister Rishi Sunak is considering a ban on cigarettes that would effectively ban the next generation from purchasing cigarettes, according to the Guardian.
Sunak has reportedly been looking into measures similar to those put in place in New Zealand, involving steadily increasing the legal smoking age, resulting in those born on or after Jan. 1, 2009, never being able to buy tobacco products.
“At a time when people and businesses are crying out for stability, Rishi Sunak has poured fuel on the Tories’ economic bin fire in a desperate bid to keep Liz Truss and her fellow arsonists happy,” said Keir Starmer, Labour leader, referring to Sunak’s recent backtracking on his net-zero policy and confusion over his education policies.
“Britain has a once-in-a-generation chance to reverse 13 years of decline and get ahead—to bring down people’s bills, create quality jobs and free us from the grip of Putin and over-reliance on China. Rishi Sunak’s weakness now stands between the country and proper national renewal,” Starmer said.
“Smoking is a deadly habit—it kills tens of thousands of people each year and places a huge burden on the NHS and the economy,” said a government spokesperson about the New Zealand-style smoking ban policy. “We want to encourage more people to quit and meet our ambition to be smoke-free by 2030, which is why we have already taken steps to reduce smoking rates. This includes providing 1 million smokers in England with free vape kits via our world-first ‘swap to stop’ scheme, launching a voucher scheme to incentivize pregnant women to quit and consulting on mandatory cigarette pack inserts.”
“Prohibiting the sale of cigarettes to future generations of adults won’t stop people smoking,” said Simon Clark, director of the smokers’ group Forest. “It will simply drive the sale of cigarettes underground and into the hands of criminal gangs.
“Treating adults like children by denying them the right to buy cigarettes legally would take the nanny state to another level.
“Smoking rates have been falling for decades,” Clark said. “The idea that any government would prioritize tackling smoking at a time when the country faces far more important challenges at home and abroad is frankly obscene.
“If it’s true that the prime minister wants to introduce some of the world’s toughest anti-smoking measures, denying millions of adults the freedom to choose, it will be a Conservative government in name only.”
September 25, 2023