Category: News This Week

  • Ultimate Recognition

    Ultimate Recognition

    Winners of the 2023 Golden Leaf Awards accept their trophies in Seoul

    The winners of the 2023 Golden Leaf Awards accepted their trophies during a ceremony on Sept. 20 in the Conrad Seoul hotel—the site of this year’s Global Tobacco & Nicotine Forum. This year’s competition stood out due to a record number of entries and, according to the judges, an unusually challenging selection process as a result of the high quality of submissions.

    This year’s winners are:

    • ANDS, which was recognized for its Slix single-use e-cigarette
    • Alliance One India Industries, which was recognized for its efforts to empower women in India
    • Vaporesso, which was recognized for its Vaporesso COSS technology.
    • The ICCPP Group, which was recognized for its across-the-board commitment to delivering cutting-edge technology.
    • The Center for Agricultural Transformation, which was recognized for its efforts to help diversify Malawi farmers’ income streams.
    • Innokin, which was recognized for developing a ceramic material that eliminates metal from the vape coil.

    The Golden Leaf Awards are sponsored exclusively by BMJ. Read more about the winning entries here. 

  • BAT Plants Flowers to Address Litter

    BAT Plants Flowers to Address Litter

    Image: Marquicio

    BAT Rothmans, the Korean unit of BAT, has started a flower planting campaign called “Kkot BAT” to help prevent litter and cigarette butts in alleys.

    “Kkot” translates to “flower” and “BAT” translates to “plot;” the campaign is placing flowerpots or flowerbeds in neighborhoods suffering from litter and illegal waste disposal.

    BAT Rothmans has secured partnerships with nongovernmental organizations with close relationships to local communities.

    “Our Kkot BAT campaign is a meaningful campaign in which companies join hands with the local community for environmental solutions,” said Kim Eun-ji, the country manager of BAT Rothmans. “We will continue to give positive influence on neighborhoods with environmental, social and corporate governance efforts.”

    BAT Rothmans signed a memorandum of understanding with the Korean National Council for Conservation of Nature Seoul branch in June and planted its first flower garden in Jung-gu, Seoul, near BAT Rothmans’ headquarters.

    Following its first campaign, BAT Rothmans will plant about 20 flower gardens all over Seoul, with plans to expand its influence to Gwanak-gu, Dobong-gu and Nowon-gu by the end of the year.

  • BAT Outlines Five-Step Vapor Rules Plan

    BAT Outlines Five-Step Vapor Rules Plan

    BAT has released a blueprint for how regulators and governments could better regulate vapor products and help smokers switch to less risky products.

    During DTNF 2023, held from Sept 18-20 in Seoul, BAT’s global head of business communications, Jonathan Atwood, told attendees how BAT’s five-step plan for regulation could support achieving the right balance between harm reduction and the unintended consequences of access, including underage use.

    Speaking on behalf of Kingsley Wheaton, BAT’s chief strategy & growth officer, Atwood said that reckless players in the market need to be penalized when they do not abide by the rules. He said the five suggestions are the areas that regulators should explore and establish “smart regulation” that is right for their market.

    “First, on-device technology and functionality: vapor products should be accessible only to adults. Both underage prevention and restriction is crucial. On-device technology, when applied and enforced across entire markets, could help in this regard.

    “Second, more recognition is needed that flavors are an important driver of adoption for smokers seeking alternatives. However, flavors in vapor products should not particularly appeal to anyone underage.

    “Third is at the manufacturing and import level: ensuring that non-compliant products cannot reach the market in the first place.

    “Fourth, where no restrictions exist already, regulators may want to look at who should be able to sell vapor products and where. Reasonable safeguards at the point-of-sale would help ensure these products are sold only to adult consumers. Solutions such as retail licensing and facial recognition technologies should be seriously considered.

    “Lastly, enforcement and penalties: governments must wield their power and ensure consumers are purchasing legitimate products. Such measures should be rigorously enforced and those who fail to comply should face meaningful sanctions.”

    Atwood said BAT was calling upon governments, regulators, and industry peers to rally towards a sustainable and progressive environment in which vaping products are sold and marketed responsibly.

  • Malawi Commits to ‘Decent Work’

    Malawi Commits to ‘Decent Work’

    Image: Tobacco Reporter archive

    Malawi’s government has committed to ensuring that there is “decent work” for tobacco sector employees, according to Malawi24.com.

    Hlalerwayo Kelvin Nyangulu, labor commissioner, made the statements during a workshop on strengthening knowledge of labor laws, issues and compliance. “In 2021, the employment act was amended, and we actually abolished tenants labor in Malawi,” Nyangulu said. “So, (the) government is really committed to ensure that we have decent work in the tobacco sector.

    “What is important now is that a decision has been made, a law has been enacted, so what is happening is that as I speak, tenants labor is abolished in Malawi. As you may know, tenants labor was providing fertile ground for child labor; it was also providing fertile ground for forced labor; now that it is abolished, that’s why we are talking about developing standard contracts that will define the relationship between employer and the worker in the tobacco sector,” said Nyangulu.

    Currently, the push is for tobacco workers to be paid monthly wages, according to Nyangulu. “You see, tobacco is produced by smallholder farmers and large estate owners. We have seen that some farmers are complaining that they cannot afford to pay the monthly wages, but since we have the law, we just need to find ways how these farmers can be empowered so that they comply with the law.”

    “What has prompted us to do this is that as ECAM [Employers Consultative Association of Malawi] under ILO, we carried out a training needs assessment, and one of the things that was highlighted there was that many companies or personnel companies are not aware of international labor standards,” said George Khaki, executive director of ECAM. “Actually, it was 62 percent of them who indicated that they were not aware of international labor standards.”

    “So we thought this was a good platform for us to bring the knowledge on international labor standards today, but we are also trying to promote the use of standard contracts; we know that tenants labor was abolished in 2021 in the employment act, which means there will be normal employment relationship for players in the tobacco (sector), and to facilitate that, we are developing a standard contract that can be adopted and be used by the majority of players that do not have capability to develop contrasts,” said Khaki.

  • FDA Seeks Nominations for TPSAC

    FDA Seeks Nominations for TPSAC

    Image: freshidea

    The U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) is requesting nominations by Oct. 11, 2023, for a nonvoting representative of the interests of the tobacco manufacturing industry to serve on the Tobacco Products Scientific Advisory Committee (TPSAC). Individuals may self-nominate or be nominated by any interested person or organization.

    In addition, the CTP is seeking any industry organizations interested in participating in the selection of this TPSAC nonvoting representative.

    Nomination materials for prospective TPSAC candidates and letters from industry organizations interested in participating in the selection process should be sent to the CTP by Oct. 11, 2023. Please see the Federal Register notice for further details on the nomination and selection procedures.

    TPSAC advises the CTP in its responsibilities related to the regulation of tobacco products. The committee reviews and evaluates safety, dependence and health issues concerning tobacco products and provides appropriate advice, information and recommendations to the FDA commissioner.

  • Victoria Harker Joins PMI Board

    Victoria Harker Joins PMI Board

    Image: Syda Productions

    Philip Morris International appointed a new member, Victoria Harker, to serve on the board of directors, effective Jan. 1, 2024.

    Harker is an experienced U.S. public-company chief financial officer, having served in the role with three different companies, and she has been involved in significant corporate transformations in the consumer, industrial and utility sectors for over 25 years. She is a high-energy, action-oriented, strategic executive who has worked at a significant scale, most recently as executive vice president and chief financial officer of TEGNA Inc., a global media and digital communications company, a position she will step down from effective Dec. 31, 2023. Prior to this, she served as executive vice president, chief financial officer and president of global business services of The AES Corporation, a global power company. She has served as a nonexecutive member of the boards of directors of two large and complex U.S. public companies, Huntington Ingalls Industries and Xylem Inc., since the time of their respective spinoffs. Harker also serves as the audit committee chair for Huntington Ingalls Industries and as the compensation committee chair for Xylem Inc. She is vice chair of the State Council of Higher Education for Virginia, a member of the University of Virginia Health System board and was previously a member of the University of Virginia board of visitors.

    Andre Calantzopoulos, PMI’s executive chairman, commended Harker on the appointment, and said in a statement, “We are delighted to welcome Victoria to the PMI board of directors. Her broad finance and business experience will further strengthen and diversify the capabilities of our board in successfully guiding our company through its ambitious and highly promising journey toward a smoke-free future and beyond.”

  • KT&G Wins Admin and Security Award

    KT&G Wins Admin and Security Award

    Image: KT&G

    KT&G received the Minister of Public Administration and Security Award at the 12th Korea Knowledge Awards organized by the Ministry of Public Administration and Security.

    The Korea Knowledge Award is the nation’s highest accolade in the field of knowledge, awarded to government and public institutions and private enterprises that have shown outstanding results in knowledge administration and management, leading to government innovation and enhanced corporate competitiveness. KT&G was recognized for its systematic knowledge management accomplishments, including establishing a dedicated intellectual property division and developing intellectual property processes, distinguishing itself as the sole private enterprise recipient of the award.

    KT&G has concentrated on strengthening its proprietary technology development capabilities to swiftly respond to an ever-changing market. The company has been operating a dedicated organization for intellectual property, constructing a unique intellectual property computer system for effective management and promoting in-house research and development as well as technological innovation by uncovering and nurturing employees’ innovative business ideas through initiatives like Patent Week, leading to patent applications.

    KT&G’s consistent drive in knowledge management led to a significant increase in intellectual property creation, resulting in domestic patent applications surging from 82 in 2017 to 444 in 2022—a more than 440 percent increase. Domestic and overseas applications also saw a monumental rise, starting from 27 in 2017 to 1,065 in 2022—an increase of over 3,800 percent. Currently, the total registered trademarks stand at 7,132.

    Owing to these achievements in intellectual property creation, KT&G was honored with the Prime Minister’s Award at the 56th Invention Day event hosted by the Korean Intellectual Property Office in 2021, recognizing its contribution to protecting national industrial technology and advancing the intellectual property system. Moreover, in the 2021 South Korean Corporate European Patent Index released by the European Patent Office, the company ranked third, following Samsung and LG. This year, KT&G was also chosen as one of the Top 100 Global Innovative Momentum Companies by LexisNexis, a global intellectual property solution company.

    Cho Seong-moon, the head of KT&G’s R&D division, stated, “Based on our technological competitiveness and rapid adaptability to the ever-changing market, KT&G will continue to grow into a global ‘top-tier’ enterprise through the continuous enhancement of knowledge management.”

  • Industry Leaders Call for Regulatory Restraint

    Industry Leaders Call for Regulatory Restraint

    Photo: WavebreakMediaMicro

    Representatives of the nicotine industry called on regulators to develop policies that respect adult consumers, strengthen the protection of minors in a targeted manner and take into account the concerns of the companies and employees of a diverse industry.

    Speaking during the opening day of the InterTabac trade exhibition in Dortmund, industry leaders cited mounting regulations in Germany, where manufacturers, retailers and consumers have had to adjust to multitude new restrictions in short succession.

    Meanwhile, the EU Commission is preparing amendments to the EU Tobacco Tax Directive and the EU Tobacco Products Directive, which threaten to tighten the rules even further. In Berlin, politicians are calling for additional advertising bans and a ban on flavors in e-cigarettes.

    Managing Director Michael von Foerster of the German Smoking Tobacco Association urged lawmakers to return to the model of the responsible consumer.

    “An informed adult who rolls a cigarette, enjoys a cigar, smokes a pipe or consumes snuff has the right to do so without government paternalism through new harassment and restraints,” he said. “Instead of continuing to turn the regulatory screw, greater trust in informed consumer decisions is urgently needed—not only in the tobacco sector.”

    The calls for new advertising restrictions in Germany are driven in part by a recent DEBRA study that revealed an increase in smoking. However, according to Jan Muecke, managing director of the German Association of the Tobacco Industry (BVTE), the results of this study are contradicted by the significant decline (8 percent) in cigarette sales in 2022. Cigarette sales in Germany fell to 65.8 billion units in 2022, according to the BVTE—a historical low.

    “Far reaching political decisions cannot be discussed on the basis of a survey which, given the small sample size, has no validity and does not stand up to scrutiny,” said Muecke. “We support a targeted strengthening of the protection of minors, for example through more intensive control of the ban on the sale of these products to minors. Arbitrary bans, on the other hand, would not add any value to the protection of minors and would ultimately be counterproductive. Banning flavors in e-cigarettes does not keep young people away from nicotine, but only prevents adult smokers from switching to these low-emission alternative products.”

    Bodo Mehrlein, managing director of the Federal Association of the Cigarette Industry, demanded an end to what he described as the strangulation of the tobacco business in Germany, pointing to the sector’s economic contributions at a time of hardship. The tobacco industry, which directly and indirectly employs some 350,000 people in Germany, is already drowning in regulations and requirements, he said. For example, it is currently facing the challenge of installing a costly traceability system to monitor the supply chain.

    Torsten Loeffler, president of the Federal Association of Tobacco Retailers, said the mounting regulatory burdens threaten the viability of many retailers, who are already struggling with skyrocketing cost and low profits.

    “Those who demand a ban on tobacco advertising in shops want a ban on communication for legal products, prevent competition as well as diversity, and thus endanger the existence of businesses and the jobs of employees,” he said.

     

  • FDA: Premium Cigars Exempt from User Fees

    FDA: Premium Cigars Exempt from User Fees

    Image: J A Nicoli

    The U.S. Food and Drug Administration will not assess user fees for premium cigars in the fourth quarter of fiscal year 2024, the agency told manufacturers and distributors, according to Halfwheel.

    The statement follows last month’s outcome of Cigar Association of America et al. v. United States Food and Drug Administration et al., which led to deeming regulations not being applied to cigars that meet the definition of “premium cigar.”

    User fees help fund the Center for Tobacco Products. The amount of user fees is set by Congress; companies that import or manufacture cigarettes, roll-your-own products, snuff, chewing tobacco, cigars or pipe tobacco are assessed fees, and individual shares are calculated based on excise taxes paid on each product compared to the total amount of excise taxes paid by all products.

    The FDA, however, does not know whether a cigar company is selling premium cigars, nonpremium cigars or a mixture of both. Due to this, the FDA is asking companies to submit dispute letters within 45 days of the assessment of user fees. The agency is allowing companies the option of either paying the full amount of user fees with the intent of getting refunded for user fees assessed to premium cigars or paying what the company believes it will owe for nonpremium cigars.

    The FDA has stated that it will introduce a better process going forward, but it has not released information regarding what that will look like.

    There was no mention as to whether the FDA plans to refund user fees paid for premium cigars from August 2016 to the second quarter of fiscal year 2023.

  • FDA Sends More Warning Letters

    FDA Sends More Warning Letters

    Image: theerakit

    On Sept. 14, 2023, the U.S. Food and Drug Administration issued warning letters to 15 online retailers and three manufacturers and/or distributors for selling or distributing unauthorized e-cigarette products. Additionally, in one case, the retailer illegally sold a product to an underage purchaser. The warning letters cite a range of popular and youth-appealing e-cigarette products, including disposable products, marketed under the brand names Elf Bar, EB Design, Lava, Cali, Bang and Kangertech. 

    According to the FDA, the youth-appealing e-cigarette products of focus were identified through rapid surveillance and a data-driven approach to investigations. Retail sales data, emerging internal data from surveys of youth, as well as other data sources helped the agency to identify the rising popularity of these youth-appealing products, which were subsequently prioritized for investigation across the supply chain, from manufacturers to distributors to retailers.

    “Given the rapidly evolving nature of the e-cigarette landscape, it’s essential that we have nimble surveillance tools that can best keep pace to protect public health,” said Brian King, director of the FDA’s Center for Tobacco Products. “They’re a critical component of our comprehensive surveillance toolbox, so that we can proactively identify and swiftly stave off emerging threats, particularly those affecting our nation’s youth.”