Category: News This Week

  • Indonesia: Tax Collections Fall Short

    Indonesia: Tax Collections Fall Short

    Photo: Taco Tuinstra

    Indonesia had collected only half of the targeted tobacco taxes by the end of August, reports Tempo, citing the country’s Directorate General of Customs and Excise.

    According to the directorate’s director of communication, Nirwala Dwi Heryanto, the state’s income from tobacco excise reached only IDR126.8 trillion ($14.76 billion) by the end of last month—far short of the IDR232.5 billion anticipated in the 2023 state budget.

    Based on the collections to date, Heryanto expected Indonesia’s tobacco tax collections to reach 93.98 percent of its target by the end of 2023.

    Heryanto attributed the shortfall to downtrading, a shift from combustible cigarettes to vapor products and illegal distribution of cigarettes.

    To reach its target, Customs and Excise is stepping up enforcement and improving its technology and information service, Heryanto said.  

  • Pyxus Reorganizes

    Pyxus Reorganizes

    Photo: Pyxus

    Pyxus International has announced a new, streamlined organizational structure designed to increase operational efficiencies, drive organizational effectiveness and create stakeholder value. 

    The company will split the role and responsibilities of the Alliance One president, creating two new leadership positions—executive vice president, chief operating officer (COO) and executive vice president, business strategy & sales.

    In addition, it will redesign of the company’s current business services function and rebrand the company’s current communications, sustainability and external affairs function, positioning it as a standalone corporate affairs department

    Alliance One’s president, Alex Strohschoen, has departed the company to pursue new opportunities. Additionally, the organizational structure changes align with Herbert Weatherford, Alliance One senior vice president, business relationship manager’s intent to retire in March 2024 after 34 years of service.    

    “In line with one of Pyxus’ key themes for fiscal year 2024—simplification—our updated organizational structure connects our core business functions with our strategic priorities to drive accountability and operational results while reducing unnecessary or burdensome complexities,” said Pyxus President and CEO Pieter Sikkel. “We have assembled a strong, diverse leadership team and I am confident this new structure further positions Pyxus as a future-facing, agile business as we continue prioritization of growth and long-term success.”

    In line with one of Pyxus’ key themes for fiscal year 2024—simplification—our updated organizational structure connects our core business functions with our strategic priorities to drive accountability and operational results while reducing unnecessary or burdensome complexities.

    Pyxus has appointed Scott Burmeister to the newly created position of executive vice president, COO. Burmeister has served the company in several capacities since joining in 1996, most recently leading the business’ Europe, Middle East and Africa region. As COO, he will focus on the company’s global operations, quality and output, with oversight of the business’ regional director positions, and the global agronomy department and value-added agricultural products division.

    Dustin Styons has been named Pyxus’ executive vice president, business strategy and sales, responsible for business-to-business strategy, business relationship management, business development and the company’s e-liquids division. Styons joined the company in 2005, most recently serving as vice president, corporate finance and business development.  

    Tracy Purvis, who has led the Pyxus’ global business services function since 2018, has been tasked with its redesign under the new title of executive vice president, global business & information services. Purvis, who joined the company in 1990, will leverage Pyxus’ IT assets to drive cost competitiveness, efficiencies and effectiveness with a focus on process automation and simplification, data analytics, validation and visualization, and productivity collaboration.

    To align with the business’ strategic focus area of environmental, social and governance (ESG), as well as the growing importance of addressing all stakeholders equally to mitigate risk, enhance brand value and ensure consistent, transparent messaging, Miranda Kinney has been promoted to senior vice president, global communications & sustainability. She will lead the company’s newly formed global corporate affairs department and will remain responsible for internal and external communications, crisis management, sustainability and ESG, and external and government affairs. 

    All four positions will report to Pyxus’ president and CEO.  

  • New Global Vape Alliance Announced

    New Global Vape Alliance Announced

    Photo IEVA

    A new Global Vape Alliance has been announced at the InterTabac Trade Fair in Dortmund, Germany, alongside a declaration to foster collaboration, promote responsible practices and champion the cause of harm reduction in the vaping industry.

    The Global Vape Alliance brings together major international vaping bodies including the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce (ECCC), the U.S. Vapor Technology Association (VTA), the U.K. Vaping Industry Association (UKVIA) and the Independent European Vape Alliance (IEVA).

    The declaration aims to underscore the power of unity within the vaping industry. By coming together under its umbrella, industry leaders will commit to effecting responsible and positive change on a global scale, thereby signifying a new era in the industry’s dedication to public health, environmental sustainability and the well-being of smokers seeking alternatives to traditional tobacco products.

    Key highlights of the Global Vape Alliance declaration include:

    • Regulatory Compliance: The alliance will facilitate the sharing of best practices to ensure member companies adhere to existing laws, regulations and industry standards, with a strong focus on responsible marketing and protecting youth.
    • Industry Promotion: The alliance aims to elevate the vaping industry’s professionalism, importance and sustainability by fostering communication among industry stakeholders and encouraging technological innovation.
    • Public Health: Emphasizing harm reduction, the alliance will actively promote the adoption of vaping products among conventional smokers to reduce harm, while openly providing information about their impact on physical health.
    • Environment Protection: In pursuit of a greener future, the alliance will advocate for eco-friendly strategies, promote recycling, low-carbon design and urge compliance with environmental laws.

    Our goal is clear—to make a significant impact on public health, support those looking to quit smoking and contribute to a sustainable, environmentally friendly future.

    The Global Vape Alliance firmly believes that unity and cooperation within the vaping industry can lead to a world without smoking.

    “Our goal is clear—to make a significant impact on public health, support those looking to quit smoking and contribute to a sustainable, environmentally friendly future. With this declaration, we are combining the international forces of the industry to achieve important goals for the benefit of consumers,” said Dustin Dahlmann, president of the IEVA.

    “The signing of the declaration, as I believe, will guide the global vaping industry to the future of healthy development and prosperity. In this regard, ECCC will continue to deepen the cooperation with other partners,” said ECCC Secretary-General Will Ao.

    “The vaping sector is entering a critical chapter in its history with increased scrutiny from policy makers, regulators, public health officials, academics and campaigners,” said John Dunne, director general of the UKVIA. “It has to stand up and be counted, show strong leadership and the greatest levels of responsibility. The launch of the Global Vape Alliance and the declaration sets out to show the world that we are committed to best standards, practices and above all making smoking history.”

    “Despite the enormous body of science that has declared vaping nicotine dramatically safer than smoking, the vapor industry’s detractors around the globe push a dramatically misinformed narrative,” said Tony Abboud, executive director of the VTA. “Declaring a shared commitment to furthering sound science, truthful information, and a commitment to meaningful regulations, industry leaders around the world can better serve companies and, more importantly, millions of consumers using vaping products to reduce and/or quit smoking cigarettes.”

    For more information about the Global Vape Alliance declaration, please visit the Global Vaping Alliance website.

  • BAT Completes Sale of Russia Business

    BAT Completes Sale of Russia Business

    Photo: Matvey Salivanchuk

    BAT has completed the sale of its Russian and Belarusian businesses, the company announced its website. According to the multinational, the sale has been carried out in compliance with local and international laws and follows the receipt of all necessary approvals.

    “BAT Group announced conclusion of an agreement on sale of business in Russia and Belarus today. All trademarks being used now will remain in the ownership of the Russian business. Consequently, consumers will continue receiving high-quality products they are used to under familiar brands,” the press service of the company’s Russian office said.

    “Throughout the transfer process, same as after it, among the new owner’s key priorities are uninterrupted business processes, ensured employment of the staff and the implementation of the investment plan approved by the governmental subcommittee,” the company noted.

  • Expert Condemns Kazakh Vape Ban

    Expert Condemns Kazakh Vape Ban

    Delon Human (Photo: Taco Tuinstra)

    Leading international public health experts have expressed serious concern about Kazakhstan’s imminent ban on vapes as a “backward step” that contradicts the unprecedented success of more progressive countries that are dramatically reducing tobacco’s toll through the use of alternative nicotine products.

    The Kazakh government’s intention to enact the prohibition by Jan. 1, 2024, endangers the lives of the country’s 3.2 million smokers who will be deprived of their best chance to quit their deadly habit, according to the Smoke Free Sweden, a movement highlighting Sweden’s progress in becoming smoke-free.

    “We note with great concern this retrogressive move by the Kazakhstan Ministry of Health, which defies the extraordinary achievements of some countries that have adopted a progressive approach to modern products such as vapes and oral pouches,” said Delon Human, a global health advocate and founder of Smoke Free Sweden, in a statement.

    “Around the world, alternative nicotine products are helping to save millions of lives by giving smokers an escape from combustible cigarettes. They are proven to be at least 95 percent less harmful than cigarettes and the most effective way for smokers to quit.

    “To ban these reduced-risk products will simply condemn many smokers to stick with cigarettes and sentence them to an unnecessarily premature death.”

    Human urged Kazakh authorities to emulate the approach of Sweden, which is on course to drop below a 5 percent tobacco smoking prevalence in the next few months. This is the level at which a country is considered officially smoke-free.

    Sweden is the first EU country to achieve this milestone—17 years ahead of schedule—through its policy of making vapes and pouches available, acceptable and affordable to adult smokers.

    “Quitting smoking like Sweden saves lives,” says Human. “Compared to the rest of Europe, Sweden has 44 percent fewer tobacco-related deaths, a cancer rate that is 41 percent lower, and 38 percent fewer deaths attributable to any cancer.

    “Sweden is leading the way for other nations, such as the United Kingdom where the health service is giving free vape kits to smokers to help them quit. The government is funding the ‘swap to stop’ scheme with the aim of turning the country smoke-free by 2030.

    “Meanwhile, only last month, the largest study of its kind in the United States confirmed the immense value of vapes as cessation aids. Researchers at Hollings Cancer Center in South Carolina found that vapes nudged people towards quitting smoking – even those who had entered their trial saying they had no intention of quitting.

    “Such evidence is compelling and should be ignored no longer. If Kazakh authorities are serious about saving lives, they should be following the science and offering affordable access to vapes, instead of blocking this proven ‘fire escape’ for smokers,” concluded Human.

  • FEELM Highlights OS Vape at InterTabac

    FEELM Highlights OS Vape at InterTabac

    The latest in vaping industry innovations made its debut during InterTabac 2023, held from September 14-16, as FEELM, a leading closed system solution provider, unveiled its OS Vape in a partnership with OS.

    It is the first time FEELM has co-exhibited with its local partner during the world’s largest nicotine and tobacco trade show held in Dortmund, Germany.

    OS, a major player in Germany’s shisha product market, recently ventured into the disposable vaping product market.

    A representative from the FEELM booth said that collaborating with clients for exhibitions is a new strategy aimed at bolstering the client’s brand presence in local markets.

    The FEELM spokesperson said the company intends to continue its co-exhibition format at major global exhibitions, joining forces with clients from various regions in a collective march towards a global presence.

    OS Vape introduced a disposable vaping solution that delivers an elevated puff count, cost-efficiency, and unmatched vapor consistency, promising German consumers a rich vaping experience reminiscent of their cherished beers.

    The OS Vape uses FEELM Max ceramic coil technology, disposable product the ability to provide 800+ puffs, a more than 30% enhancement in puff count compared to other common disposable products.

    This establishes a new standard under TPD compliance, according to the FEELM spokesperson.

    “Beyond puff count, OS Vape offers an exceptional vapor and taste consistency of over 95%. These groundbreaking advancements have undoubtedly propelled the vaping industry to new zeniths,” the spokesperson said. “Additionally, the signature transparent e-liquid tank not only alleviates e-liquid concerns but also adds a touch of aesthetic sophistication.”

  • White House Steps Up Fight Against Smoking

    White House Steps Up Fight Against Smoking

    Photo: Alexander Ryabkov | The White House

    The White House on Sept. 13 announced a $240 million investment to fight cancer, along with a slew of new health resources to further the administration’s “Cancer Moonshot” initiative.

    The announcements from the Biden Cancer Moonshot include:

    • New investments to reduce the impact of menthol and other flavored commercial tobacco products in communities that experience health disparities
    • A new plan to decrease the impact of smoking on Americans’ health by expanding efforts to prevent smoking and to support everyone who wants to quit. To ensure Americans who want to quit have the support they need, the Department of Health and Human Services will finalize its Framework to Support and Accelerate Smoking Cessation this year.
    • New smoking cessation resources for underserved communities, including American Indian, Alaska Native and Black communities, to reduce cancer health disparities.
    • A new pilot program to increase veteran engagement in tobacco use treatment. The Department of Veterans Affairs, in collaboration with the National Cancer Institute, will conduct a clinical demonstration project to assess how to more effectively engage veterans in tobacco-use treatment programs.
    • New resources and actions to reduce exposures to environmental carcinogens. The Environmental Protection Agency (EPA) is launching gov/cancer, with new information and prominently featured resources from EPA and other federal agencies about secondhand smoke, smoking cessation and other cancer-related topics.

    Tobacco harm reduction activist have been urging Biden administration to embrace less harmful alternatives in its Cancer Moonshot initiative. “If President Biden is serious about beating cancer, then embracing tobacco harm reduction is not just an option, it’s a necessity,” said Michael Landl, director of the World Vapers Alliance (WVA), in a statement.

    Landl pointed to the examples of Sweden and the United Kingdom, which he said have proven the effectiveness of vaping and other less harmful products in reducing smoking rates. “Instead of fighting less harmful alternatives, the Biden Administration needs to embrace vaping as a smoking cessation aid,” he said.

    The investments in programs aiming to reduce smoking among marginalized groups would be more impactful if they included harm-reducing alternatives, according to Landl.

    “To achieve the desired outcomes in cutting cancer-related deaths, it’s imperative that the United States foster a comprehensive harm reduction strategy that acknowledges vaping’s potential to save lives. Many smokers fail to quit, so to beat cancer we need to get real about that and encourage the use of less harmful alternatives such as vaping,” he said.

    The WVA urged the Biden administration to develop an inclusive strategy that incorporates a range of less harmful alternatives to smoking. “Flavor bans, high taxation on safer nicotine products and the overly bureaucratic FDA approval process must end immediately,” said Landl.

  • EU Urged to Embrace THR

    EU Urged to Embrace THR

    Photo: Teo

    Ahead of this year’s EU State of the Union address on Sept. 13 in Strasbourg, France, the World Vapers’ Alliance (WVA) urged President Ursula von der Leyen to tackle the devastating impact of smoking-related diseases in the European Union. The association proposes the EU Commission’s president embrace a coherent EU-wide harm reduction strategy that includes evidence-based approaches to vaping and nicotine pouches, which have been shown to significantly reduce harm compared to smoking.

    “We implore Ursula von der Leyen to finally address the far-reaching impacts of smoking,” said WVA Director Michael Landl in a statement. “Smoking is a public health problem requiring immediate attention, causing more than 700,000 deaths in the EU annually. Evidence is clear that alternative nicotine products, such as vaping and nicotine pouches, can be a game changer in the battle against smoking. The time for brave leadership is now.”

    According to the World Vapers’ Alliance, Sweden has become a bright example that a coherent harm reduction strategy is the key to successfully addressing smoking-related illnesses. Not only is Sweden the first country in the world to reach the smoke-free goal (17 years ahead of the EU targets), but it keeps its commitment to favor harm reduction. Last week, the Swedish government announced its plan to reduce the tax on snus, a smokeless tobacco product similar to modern nicotine pouches, by 20 percent while increasing the tax on cigarettes and smoking tobacco by 9 percent.

    Vaping is still a recommended means of quitting for smokers in France, the United Kingdom, Canada and New Zealand, according to the WVA. This April, the U.K. government launched a “Swap-to-Stop” program aimed to incentivize smokers to quit by exchanging their cigarettes for free vape devices. Following Sweden’s recent move to reduce the tax rate on snus based on a risk-based regulatory approach and the U.K.’s full endorsement of vaping as a tool for smoking cessation, the WVA calls on the European Union to follow their lead in adopting a coherent harm reduction strategy.

    “In Sweden and the U.K., we’ve seen the incredible impact that a harm reduction approach can have on reducing smoking rates and improving public health. These countries lead by example, using a balanced risk-based strategy that includes vaping and nicotine pouches as safer alternatives to smoking. It’s time for the European Union to follow their lead. President von der Leyen has an unparalleled opportunity to set a new course for the EU in her State of the Union speech—one that embraces innovative, evidence-based solutions to tackle the smoking crisis,” added Landl.

  • Morachnick to Lead Charlotte’s Web

    Morachnick to Lead Charlotte’s Web

    Image: Tobacco Reporter archive

    Charlotte’s Web Holdings appointed William (Bill) Morachnick as CEO. Morachnick has also been appointed to the company’s board of directors as a nonindependent director. He replaces CEO Jacques Tortoroli, who has elected to resign from his roles at Charlotte’s Web.

    Morachnick has a record of building premium, differentiated products and brands across multiple channels throughout the world and across a broad range of product categories.

    Prior to joining Charlotte’s Web, Morachnick was president at Santa Fe Reynolds Tobacco International Zurich (SFRTI) from 2006 to 2016. He took SFRTI from a startup to a highly profitable organization, managing several hundred employees and a network of importers/distributors operating in Europe, Asia and the Middle East. SFRTI was acquired by Japan Tobacco Group in 2016 for $5 billion. Morachnick led the subsequent integration of the combined companies as CEO and chairman based in Tokyo, Japan, for two years before returning to the U.S. in 2018.

    Since returning to the U.S., he has served as an executive advisor or board member for several companies seeking to launch and/or expand their businesses in the U.S. and overseas markets.

    “Bill has an accomplished career building businesses in multiple categories,” said John Held, chairman of Charlotte’s Web. “With his proven operational expertise, Bill is well suited to take the reins to lead the Charlotte’s Web team through the next phase of the company’s growth opportunities.”

    The company expressed its gratitude to Tortoroli for his contributions. ‎“Jacques served on the company’s board since November of 2019 and as CEO since late 2021 in a difficult environment devoid of regulatory oversight and clarity,” said Held. “Under his leadership as CEO, Jacques streamlined the organization, reduced the cash burn and recapitalized the company through a strategic $57 million investment from BAT via a convertible loan.”

    In November 2022, BAT announced a £48.2 million ($57.4 million) investment in Charlotte’s Web.

  • BioBetter Deploys Tobacco to Help Cultivate Meat

    BioBetter Deploys Tobacco to Help Cultivate Meat

    BioBetter has opened its first food-grade pilot facility to accelerate the production of key growth factors for the cultivated meat industry. The company has pioneered a unique protein manufacturing platform for producing growth factors (GFs) using tobacco plants as self-sustained, animal-free bioreactors.

    “Cultivated meat is still very expensive in comparison to conventional meat and the key is to reduce the growth medium costs to a minimum,” said BioBetter CEO Amit Yaari in a statement. “Our target is to reduce the production cost of growth factors, including insulin, a key part of the growth medium, to $1 per gram which is a 100-fold less than the going rate today.”

    BioBetter uses tobacco plants to produce the GFs that play a key role in the proliferation and differentiation of cultured meat cells. This, in turn, allows for the formation of authentic and well-structured muscle tissue.

    Designed for both environmental safety and efficiency, these bioreactors will be grown in a large-scale, net house cultivation system. The plants are carefully engineered to prevent the escape of any transgenic material. They are induced to express growth factors only when chemically triggered, and the company exclusively uses non-food, non-feed tobacco plants to eliminate any risk of inadvertent consumption or cross-contamination of food crops.

    “Our holistic approach not only underscores our commitment to safety and environmental responsibility but also streamlines regulatory processes,” says BioBetter co-founder Dana Yarden. “Our commitment to sustainability shines through in every facet of our operations. We plan to use recycled and low-quality water for irrigation, minimize nitrogen fertilizer use, and reduce emissions and environmental impact.”

    The newly established pilot plant has the capacity to process 100 kg of tobacco plant-derived GFs daily. Constructed in adherence to the highest quality standards, the facility meets all regulatory requirements for production of food-grade growth factors, including FGF2 and insulin. It currently is progressing through essential stages of securing approval from the Ministry of Health for food manufacturing licensing. The company is committed to scalability, adhering to ISO2200 and HACCP standards.

    “We more than doubled our workforce from 23 to 50 workers to advance all aspects of production, cultivation, and R&D,” says Yaari. “We stimulate the commercial aspirations of cultivated meat start-ups and the pilot plant signifies a substantial step toward the company’s next growth stage in 2025: the capacity for processing 25 tons of leaves daily, reaching commercial production of five tons annually by the end of 2025.”

    BioBetter also made breakthroughs in the cultivation of bovine insulin-expressing plants. Several thousand square meters of FGF2-expressing tobacco plants are already thriving in northern Israel. It’s the first time growth factor sources have been successfully planted in large net-houses, in four locations, and with a fruitful harvest obtained in its first season. Plans are underway to cultivate more FGF2 and insulin-expressing plants, with commercial roll-out projected for 2024.

    “Over the past year, our outreach and collaborations expanded considerably,” says Yarden. “We’ve shared GF samples with numerous cultivated meat companies and cell media producers worldwide and received promising proof-of-concept results for both our FGF2 and insulin from several companies and academic laboratories.”

    The $250 million global cultivated meat sector is poised for substantial growth, yet its realization hinges upon a significant supply of growth factors.

    “The most significant challenge of the cultivated meat industry is to produce and scale up at the right cost,” notes Aviv Oren, director of business engagement and innovation at the Good Food Institute in Israel. “Biobetter’s technology, which is based on molecular farming of food-grade growth factors in the required quantities and costs for industrial production, is a pivotal addition that has the potential to accelerate this industry. We are following BioBetter’s progress and hope that its products will soon reach the market.”

    In 2022, BioBetter secured $10 million in A-round investment led by Jerusalem Venture Partners. The company also is an active member of the Israeli Cultivated Meat Consortium, which unites academic institutions, large companies, and start-ups to collaboratively advance the field of cultivated meat.