Category: News This Week

TIMB Raises Red Flag On ‘Bogus Association’

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Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) has called out the Golden Leaf Advisory (GLA) as a suspected “bogus association” that is not mandated to represent farmers or the tobacco regulatory board, according to The Herald.
According to the TIMB chief executive, Emmanuel Matsvaire, “there is no relationship whatsoever” between his organization and the GLA. He urged farmers to avoid the entity.
“We have so many complaints from farmers who have been fleeced of their money by this organization purporting to represent tobacco growers,” said Matsvaire. “The organization has no mandate either from our Ministry (of Lands, Agriculture, Fisheries, Water and Rural Development) or from the TIMB to represent the farmers.
“It is a bogus institution that has been extorting money from farmers and other stakeholders.”
In April, the TIMB rejected a request from GLA to meet with farmer associations and contractors before loan disbursements. “We take note of your proposal and would like to inform you that it is regrettably rejected,” the TIMB informed the GLA. “GLA is not properly registered by either TIMB of the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.”
September 6, 2023
22nd Evaluates Alternatives for Tobacco Assets

Photo: 22nd Century
22nd Century Group has initiated a process to evaluate strategic alternatives with respect to the company’s tobacco assets. The process will include consideration of a range of strategic, operational and financial transactions and alternatives, such as business combinations, asset sales, licensing agreements, alternate financing strategies and other options.
“We believe the current market capitalization of the company does not appropriately reflect the value of our assets or their long-term potential. After extensive discussion, our board has determined that the best way to maximize value for shareholders is to comprehensively evaluate the company’s strategic alternatives,” said Nora Sullivan, chair of the board of 22nd Century, in a statement.
“Through the strategic alternatives process, we hope to identify ways to monetize the value or more effectively expand the market reach of our tobacco portfolio, including our innovative VLN tobacco harm reduction products, the first and only combustible tobacco product to receive a modified-risk tobacco product designation from the U.S. Food and Drug Administration.”
The company has engaged TD Cowen as advisors in its review of strategic alternatives. There is no assurance that the strategic alternatives process will result in the approval or completion of any specific transaction or outcome.
The company has not established a timeline for completion of the review process and does not intend to disclose developments unless and until its board of directors approves a specific transaction, concludes the review or determines that further disclosure is appropriate or is required.
September 5, 2023
CAPHRA Calls for Dismantling Regulator

Photo: Tonis Pan
The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) is calling for the disbanding of the Ministry of Health’s Vaping Regulatory Authority (VRA) in light of the recent court case involving VAPO. The Ministry of Health admitted to incorrectly threatening vape retailers, resulting in a legal victory for VAPO.
“CAPHRA believes that the VRA’s incorrect interpretation of regulations and subsequent actions against vape retailers demonstrate a lack of competence and effectiveness in fulfilling its role and responsibilities,” said Nancy Loucas, a prominent New Zealand public health consumer advocate and executive coordinator of the CAPHRA.
The organization emphasizes the potential negative impacts of the Ministry of Health’s actions on public health and the vaping industry as well as the need for a more effective regulatory body.
Loucas states, “The recent court case involving VAPO highlights the VRA’s inability to effectively regulate the vaping industry. It is time for the Ministry of Health to disband the VRA and establish a more competent and effective regulatory body that can protect public health and support the growth of a responsible vaping industry and includes consumer stakeholders.”
“Hiding behind Article 5.3 of the WHO’s [World Health Organization] Framework Convention on Tobacco Control and not engaging with those affected is a blatant cop-out and seeks to cover up their own incompetence,” said Loucas.
The court case involving VAPO revealed that the Ministry of Health had incorrectly interpreted regulations, leading to the court’s declaration in favor of VAPO. This outcome raises concerns about the VRA’s ability to effectively regulate the vaping industry and protect public health.
“CAPHRA urges the Ministry of Health to take immediate action to disband the VRA and establish a more effective regulatory body that can better serve the interests of public health by being inclusive of all stakeholders, including the vaping industry and consumer stakeholders,” Loucas said.
September 5, 2023
France to Ban Disposables

Photo: YarikL
France will ban disposable electronic cigarettes, according to a Reuters report citing comments by French Prime Minister Elisabeth Borne.
“It’s an important public health issue,” Borne said, noting that the government is putting together plans for a national program to fight tobacco usage.
Borne said “puff” devices create habits among youth that can lead to tobacco addiction.
Following a tobacco tax increase this year, the government does not plan to raise taxes next year.
Source:
September 5, 2023
Activist Group Touts THR Benefits

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Citizens Against Government Waste (CAGW) released a new issue brief, “Tobacco Harm Reduction Products Should Be Promoted Not Prohibited,” co-authored by CAGW President Tom Schatz and Director of Health and Science Policy Christina Smith, which details the benefits of tobacco harm reduction (THR) products.
“CAGW’s issue brief continues CAGW’s longstanding work on the benefits of THR products. Despite the evidence of their effectiveness in saving lives, state and federal bureaucrats have instituted regressive taxes, strict regulations and outright bans on harm reduction products, Schatz and Smith wrote in their statement.
“Restrictions on THR products have led to the creation of a dangerous and unregulated market that puts consumers at risk. And even with a crackdown on these products, the number of unique e-cigarette devices sold in the U.S. has tripled to more than 9,000 since 2020, driven mainly by unauthorized disposable vaping products from China. Instead of continuing and expanding strict laws and regulations, government officials should approach the issue of harm reduction products with evidence-based data and logical reasoning and promote policies that have helped millions of adult smokers quit.”
CAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government. The organization is based in Washington, D.C.
September 5, 2023
Menthol Rule Expected ‘in Coming Months’

Photo: Luis Pinto
The U.S. Food and Drug Administration will finalize its rules to prohibit the sale of menthol cigarettes and flavored cigars “in the coming months,” according to a spokesperson quoted by CBS News.
When the FDA in April 2022 announced that it was going to ban the flavor, it set a deadline of August 2023 to work out the details. However, the agency made no announcements last month.
While the number of people who smoke cigarettes in the U.S. has fallen to historical lows, the proportion of people who smoke menthols has been increasing, according to the Centers for Disease Control.
Tobacco companies insist there are better ways to reduce the health impact of smoking than banning menthol in cigarettes. “Evidence from other markets including Canada and the EU where similar bans have been imposed, demonstrates little impact on overall cigarette consumption,” Luis Pinto, vice president of corporate communications and media relations at Reynolds American Inc., told CBS News in an e-mail.
Experts say that even when the FDA enacts a nationwide ban, it could be many years before it goes into place, as tobacco companies are likely to challenge the measure in court.
September 4, 2023
Brazilian Stakeholders Speak Up for Tobacco

Photo: SindiTabaco
Industry representatives stressed the importance of considering tobacco growers viewpoints in the tenth Conference of the Parties (COP10) to the Framework Convention on Tobacco Control (FCTC), which is scheduled to take place Nov. 20-25 in Panama City.
During a panel discussion at the Expointer 2023 agricultural and livestock exposition in Esteio, Rio Grande do Sul, which concluded Sept 3, experts highlighted the economic significance of the tobacco industry to Brazil in general and the country’s southern provinces in particular.
“We have almost 600,000 people living directly from the crop,” said Marcilio Drescher, president of the Brazilian Tobacco Growers Association, Afubra, according to a SindiFumo report.
“On average, 51 percent of our income comes from tobacco and is supplemented by diversification. The average property is 10.5 hectares. Farmers support their families on this small area of land and use an average of just 3.29 hectares for tobacco. A small area under tobacco provides an excellent income combined with diversification. In the last harvest, the farmer’s gross income reached BRL88,000 [$17,859] per capita per family, on average, and there’s also the income from diversification,” he said.
The topic of diversification is likely to feature prominently during the COP discussion, given that the FCTC encourages countries to move tobacco farmers into other crops. While supporting agricultural diversification, participants in the Expointer panel discussion lamented the exclusion from the discussions of those most impacted by COP decisions. “We cannot have a discussion on producer diversification without involving the primary stakeholders,” said one panelist.
Rio Grande do Sul’s secretary for economic development, Ernani Polo, stressed his government’s commitment to protecting the tobacco sector. “We know that the industries and the sector are working hard to diversify, but tobacco production is still what keeps producers in the countryside,” he said.
The event was also attended by Iro Schunke, president of the Interstate Tobacco Industry Union; Vinicius Pegoraro, the president of the Association of Tobacco Producing Municipalities; Giuseppe Lobo, executive manager of the Brazilian Tobacco Industry Association; and Gualter Batista Júnior, the president of the Federation of Tobacco Industry Workers and the Santa Cruz do Sul and Region Tobacco and Food Industry Workers Union.
September 4, 2023
Emirati Group Acquires a Third of Eastern Co.

Photo: xtock
Global Investment Holding Co. of the United Arab Emirates has acquired a 30 percent state in Eastern Co. of Egypt for EGP19.3 billion ($625 million), reports Ahram Online.
After the sale, the state-owned shareholder, Chemical Industries Holding Co. (CIHC), will retain a 20.9 percent stake in Eastern.
The deal is part of Egypt’s program to sell stakes in 35 state-owned companies to strategic investors by the end of June 2024.
Egypt’s minister of public enterprises, Mahmoud Esmat, said the deal underscores the government’s commitment to the success of its program to expand ownership and encourage direct private investment across various sectors.
In the first nine months of fiscal year 2022-2023 (which concluded in March), Eastern Co. had a domestic market share of more than 70 percent and reported a net profit of EGP5.29 billion, up 24 percent over the comparable period in the previous year.
The privatization program is part of Egypt’s commitments under a $3 billion loan from the International Monetary Fund.
The government announced wants to attract $5 billion from the offering of power plants and state-owned companies from October 2023 until the end of June 2024.
In related news, Eastern recently boosted its production by 40 percent to help alleviate a cigarette shortage in Egypt, according to The Egypt Independent.
The short supply had caused prices of popular brands such as Cleopatra to surge to unprecedented levels.
Following Eastern’s decision to increase output and step up vigilance against illicit sales, cigarette prices fell by EGP20, bringing the price of a pack to EGP40.
Eastern Company CEO Hani Aman announced that the company is working with various state agencies to ensure the proper supplies are being provided to the public.

September 4, 2023
UKVIA Terminates Tobacco Memberships
The U.K. Vaping Industry Association (UKVIA) has ended the membership of British American Tobacco, Imperial Brands, Japan Tobacco International and Philip Morris International.
Following a member-wide consultation, the association will not be accepting any new applications for membership by vaping businesses wholly/part owned or acquired by tobacco companies in the future. As a result, it will not be accepting any tobacco company funding in the future.
When the UKVIA was initially set up seven years ago it was established to represent the entire U.K. vaping industry, including the e-cigarette operations owned by tobacco brands.
In this period, the association has established itself as a major force in the sector, championing the burgeoning vaping industry across the U.K. Today it’s also held up as a leading voice of the industry across the world.
“However, it has become increasingly clear that the interests of the industry would be best served by the association being independent of any involvement or funding from tobacco-owned vaping brands,” the UKVIA wrote on its website.
The organization attributes its decision to a prevailing external misperception that the association is largely financially supported by tobacco firms. Whilst funding from tobacco-owned vaping brands for the last membership year amounted to less than 4 percent of the total of all UKVIA’s income, according to the group, it gave the impression in some quarters that the association was synonymous with combustible tobacco—the very market it is trying to eliminate to create a smoke free future.
The UKVIA also believes the involvement of tobacco-owned vaping brands limits the organization to engage with key stakeholders, such as parliamentarians, public health officials and local authorities. The group said it has underestimated the impact of restrictions on tobacco companies for the association to engage with some key stakeholders, particularly those in public health.
“In representing vaping-only businesses, many of which are independent firms founded on the back of personal loss of family members as a result of smoking combustible cigarettes, the UKVIA wants to be fully engaged with key stakeholders across the board as we have the same vision, which is to make smoking history,” the UKVIA wrote. “The association sees this as being a vital step in ensuring that the public health potential of vaping is fully realized and the sector making its fullest contribution to the delivery of the smoke free targets over the next few years to 2030.
September 4, 2023
Pakistan Poised to Enact Tracking System

Photo: Tobacco Reporter archive
Pakistan’s Federal Board of Revenue (FBR) has signed agreements with 22 tobacco manufacturers to install a track-and-trace system at their factories, reports The News International.
The digital system, which allows the FBR to monitor the production, distribution and sale of tobacco products through unique identification codes and stamps on cigarette packs, is expected to increase the tax revenue from the tobacco sector, which contributes about 1.5 percent of the total tax collection in Pakistan.
The FBR initiated the system two years ago. Pakistan Tobacco Company (PTC) and Philip Morris International were the first to sign agreements and make the system operations, followed by Khyber Tobacco Co.
Now the FBR has signed agreements with 18 more manufacturers.
There are between 26 and 30 tobacco manufacturers in Pakistan, according to FBR estimates, though some of them are not operational or have moved to nominally self-governing territories such as Azad Jammu and Kasmir.
The implementation of the track-and-trace system has been marred by legal challenges. With the exception of one case, all these challenges have been rejected in court.
FBR officials expect the system to become operational by October 2023.
September 4, 2023