Category: News This Week

  • Philippines to Miss Tobacco Tax Goal

    Philippines to Miss Tobacco Tax Goal

    Image: mraoraor

    The Philippines will miss its PHP362.2 billion ($6.32. billion) excise tax collection goal this year due to declining demand for tobacco products, reports Business World. Tobacco excise accounts for more than 40 percent of the country’s excise tax take, according to Jethro Sabariaga, assistant commissioner of the Bureau of Internal Revenue (BIR).

    Sabariaga noted that tobacco consumption has been steadily decreasing over the past decade “You don’t see a lot of people smoking cigarettes these days. Even visually, you can confirm the shift in market demand,” Sabariaga said, adding that the collection growth in other excisable articles will not be enough to offset the decline in tobacco excise.

    The public’s shift to vape products has also been affecting the bureau’s excise tax take, according to Sabariaga. A single vape product is equal to one cigarette pack in excise taxes, but vape products often take longer to consume, he said.

    “So, a cigarette smoker shifting to vape, who usually consumes 10 to 15 packs of cigarettes a month, will probably just buy one vape product for the month, or worse, one for two months,” Sabariaga was quoted as saying.

    The BIR has also faced challenges in collecting excise taxes due to the stubborn illicit trade in tobacco products.

    In the first half of 2024, the agency lost around PHP7.2 billion in potential revenue from seized tobacco and vape products.

  • Austin Smokers Invited to Join IQOS Wait List

    Austin Smokers Invited to Join IQOS Wait List

    Photo: momius

    Philip Morris International will hold several events in Austin, Texas, this weekend, to mark the upcoming introduction of its IQOS tobacco heating product in the United States.

    In anticipation of launch, current nicotine users who are over the age of 21 and live in designated areas of Austin will be given the opportunity to join a wait list to be among the first to try IQOS once the product becomes available.

    “We believe having a portfolio of satisfying alternatives can help traditional tobacco users switch completely and walk away from cigarettes for good,” said Stacey Kennedy, CEO of PMI in the U.S. operations “Austin is a hotbed for innovators, entrepreneurs and trailblazers. Cultural trends adopted here have a ripple effect, so it was a natural place to introduce IQOS in the U.S.”

    Austin is a hotbed for innovators, entrepreneurs and trailblazers. Cultural trends adopted here have a ripple effect, so it was a natural place to introduce IQOS in the U.S.

    The (re)introduction of tobacco-heating products into the U.S. has been eagerly awaited by investors and tobacco harm reduction advocates, who hope the product will help transition smokers from deadly combustible cigarettes to less-harmful heating products. Tests suggest that heating tobacco produces lower levels of harmful chemicals than burning it. IQOS has been authorized by the U.S. Food and Drug Administration as a modified-risk tobacco product.

    In Tobacco Reporter’s October issue, Cheryl Olson reflects on how the launch of tobacco heating products may impact the U.S. market.

    IQOS was briefly test-marketed by PMI’s former U.S. partner, Altria Group. In September 2021, the International Trade Commission determined that the product infringed patents owned by British American Tobacco and barred IQOS imports.

    PMI and BAT subsequently resolved their intellectual property dispute, clearing the way for IQOS sales in the U.S. In October 2022, PMI reclaimed the U.S. commercialization rights to IQOS, saying Altria had failed to meet certain milestones stipulated in their agreement.

    IQOS is already available in about 80 countries, and since launching in Japan 10 years ago, it has helped more than 22 million people worldwide make the switch from cigarettes, according to PMI. A 2019 study by researchers at the American Cancer Society showed that cigarette sales decreased five times faster after IQOS was introduced in Japan.

    IQOS is now PMI’s top revenue earner, surpassing the company’s bestselling Marlboro cigarette brand.

    PMI’s latest integrated report shows that 38 percent of the company’s total net revenue now comes from its smoke-free business, which also includes the popular Zyn nicotine pouches .

    “For the first time in history, smoke-free products have surpassed cigarette combustibles,” PMI CEO Jacek Olczak said at the Technovation event on Oct. 9 in Neuchâtel, Switzerland, according to Malaya Business Insight.

  • Tobacco Industry Nears Settlement of Litigation

    Tobacco Industry Nears Settlement of Litigation

    Image: ink drop

    Canada’s three leading cigarette manufacturers will pay CAD32.5 billion ($23.6 billion) to settle a long-running lawsuit as part of a court-appointed mediator’s proposed plan, Philip Morris International announced on Oct. 18.

    In 2015, a Quebec court award damages to some 100,000 smokers and ex-smokers who alleged the companies failed to warn consumers about the health risks of smoking, which they had known about since the 1950s.

    The verdict was upheld in 2019, forcing the Canadian subsidiaries of PMI, BAT and Japan Tobacco International to seek bankruptcy protection.

    The subsidiaries have been under a court-supervised mediation process negotiating a possible settlement since then.

    The allocation of the aggregate settlement amount between the tobacco giants remains unresolved, according to Philip Morris.

    “Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude, allowing RBH [Rothmans, Benson & Hedges] and its stakeholders to focus on the future,” said PMI CEO Jacek Olczak.

    “Today marks an important step towards a potential settlement,” said Eric Gagnon, vice president, corporate and regulatory affairs for BAT’s Imperial Tobacco Canada subsidiary in a statement. “The plan resolves all Canadian tobacco litigation and provides a full and comprehensive release to Imperial, BAT and all related entities for all tobacco claims.”

    The Lung Health Foundation (LHF), too, welcomed the prospect of a settlement. “This is a meaningful first step in acknowledging decades of harm,” noted LHF President and CEO Jessica Buckley in a statement. “But financial restitution can’t make up for the loss of life. It can’t make up for the experiences of Canadians who have suffered through lung cancer and COPD.”

    Buckley called for the funds to be reinvested into vaping and smoking prevention and cessation support, mental health and addiction initiatives, and improved access to screening and care for conditions like lung cancer and COPD.”

  • U.K. Urged to Invest in Smoke-free Future

    U.K. Urged to Invest in Smoke-free Future

    Image: BillionPhotos.com

    More than 200 leading doctors, professional bodies and charities are urging the U.K. Chancellor  to use the budget on Oct. 30 as an opportunity to invest in creating a smoke-free U..K as quickly as possible, and make the tobacco industry pay.

    In an open letter published by The BMJ on Oct. 16, they warn that unless smoking is addressed, there is no prospect of delivering on Labour’s manifesto commitment to halve the gap in healthy life expectancy between the richest and poorest regions.

    According to the authors, the rationale for investing to end the tobacco “epidemic” could not be stronger. The annual cost of smoking to individuals, public services and the wider UK economy is £93 billion ($121.43 billion), while the direct cost of smoking to the U.K. public finances in 2023 was £21.9 billion, with a net cost of £13.5 billion.

    The letter writers acknowledge that there are acute constraints on spending, but point out that smoking cessation treatment saves £2.37 for every £1 invested, while improving health improves economic productivity.

    What’s more, introducing a “polluter pays” levy on tobacco manufacturers “could raise £700 million a year for vital tobacco control activity in a way that would prevent companies from simply passing the cost on to consumers, according to the authors.”

    “It is a scandal that smoking continues to have such a devastating impact on the nation’s health, being linked to 15,000 heart disease deaths in the U.K. each year. Besides the grief and pain each death causes countless families, ill health caused by smoking also puts a strain on the NHS and our economy,” said Charmaine Griffiths, CEO of the British Heart Foundation, in a statement.

    “The status quo is unacceptable, and we need a bold and far-reaching package of measures to consign smoking to history.”

  • Industry Group Files Amicus Brief in Triton Case

    Industry Group Files Amicus Brief in Triton Case

    This week, the Coalition of Manufacturers of Smoking Alternatives (CMSA), a trade coalition that represents a diverse array of members who manufacture and distribute smoking harm reduction products, filed an amicus curiae brief before the Supreme Court of the United States supporting White Lion Investments, dba as Triton Distribution, in its case against the U.S. Food and Drug Administration.

    In its brief, CMSA argues that FDA violated the Family Smoking Prevention and Tobacco Control Act (TCA) in its wholesale rejection of applications for flavored vaping products by applying a surprise and improperly adopted standard and foregoing the required notice-and-comment process. The brief emphasizes that the U.S. Congress specifically requires the FDA to undergo a transparent rulemaking process before imposing any restriction that amounts to a “tobacco product” standard.

    “Importantly, this process tasks FDA with considering the broader public health effects of any such standard, ‘such as creating demand for and increasing the use of unregulated black-market products,’ or other harmful consequences,” the CMSA states. “In its efforts to unilaterally reject flavored vapor product applications based on a new and heightened standard, FDA unlawfully sidestepped this critical regulatory check and operated outside the bounds of its authority.”

    The CMSA states that the FDA circumvented the very procedures Congress imposed to check the arbitrary or unreasonable exercise of such delegated power, and causes real harms as the FDA “misleads and whipsaws” manufacturers seeking to provide a robust set of options for consumers seeking to quit smoking,” the CMSA wrote in its brief. Further adding that “the long delays in FDA’s review of the many PMTAs (premarket tobacco product applications) it has received, coupled with the moving goal posts imposed via the review process, creates a level of uncertainty that severely deters investment and innovation in new products with harm-reduction potential.”

    Earlier this week, 13 members of Congress, including U.S. Senator Roger Marshall and U.S. Representative Andy Harris, filed an amicus brief supporting the position of Triton Distribution and CMSA. In their brief, the members of Congress write, “There is a clear lack of authority for such a ban. Congress has specifically prohibited the FDA from banning products. Despite this, the FDA imposed a categorical prohibition.”

    Also, the Global Action to End Smoking wrote in its amicus brief to SCOTUS that the FDA strayed from a “sensible, science-based harm-reduction approach, adopting an all-or-nothing stance that exalts outright cessation and all but ignores the harm-reduction strategy that Congress mandated…. [ignoring the] overwhelming scientific evidence that e-cigarettes containing flavor additives have an important role to play in moving adult smokers down the continuum of risk.”

    SCOTUS announced Dec. 2, 2024 as the date for the U.S. Food and Drug Administration v. Wages and White Lion Investments, LLC, d/b/a Triton Distribution hearing.

  • BAT to Launch Synthetic Nicotine Pouch in the U.S.

    BAT to Launch Synthetic Nicotine Pouch in the U.S.

    Photo: Andrii

    BAT will launch a new version of its Velo pouches using synthetic nicotine in the United States next year, reports Reuters.

    Made in a laboratory rather than derived from tobacco leaves, synthetic nicotine has gained popularity among manufacturers recently as a means to avoid the Food and Drug Administration’s lengthy and cumbersome tobacco product authorization process.

    While the FDA initially had authority only over naturally occurring nicotine, President Joe Biden in March 2022 signed into law a bill that extended the agency remit to synthetic nicotine. BAT’s launch would mark the first time a major tobacco company introduces a synthetic nicotine product in the U.S., according to Reuters. To date, synthetic nicotine has been used primarily by smaller manufacturers of vapes or pouches.

    David Waterfield, president of BAT’s Reynolds American subsidiary, said that the product’s previous owner submitted a premarket tobacco product application before the May 2022 deadline, meaning it can stay on the market while its application is pending, Waterfield said.

    The FDA, however, told Reuters that a pending application is insufficient for a synthetic nicotine product to be sold in the U.S. Products on the market without FDA authorization, the agency added, may be subject to enforcement.

    BAT expects U.S. nicotine pouch industry revenues to grow from £1.7 billion ($2.21 billion) today to up to £7 billion by 2030.

  • US Youth Tobacco Use at 25-Year Low

    US Youth Tobacco Use at 25-Year Low

    Photo: ViDi Studio

    Current tobacco product use among U.S. middle school and high school students has dropped to the lowest recorded level in 25 years, according to newly released data from the 2024 National Youth Tobacco Survey (NYTS). Within the past year alone, at least half a million fewer students are using tobacco products, contributing to this important progress.

    In 2024, 2.25 million middle school and high school students reported current use (use on one or more days during the past 30 days) of any tobacco product compared to 2.80 million in 2023. This decline was largely attributable to the significant drop in the number of students who reported current e-cigarette use (2.13 million youth in 2023 compared to 1.63 million youth in 2024).

    Within the past year, a significant decline also occurred in current hookah use (290,000 in 2023 compared to 190,000 in 2024). Cigarette smoking reached the lowest level ever recorded by the survey, with only 1.4 percent of students reporting current use in 2024.

    “Reaching a 25-year low for youth tobacco product use is an extraordinary milestone for public health. However, with more than 2 million youth using tobacco products and certain groups not experiencing declines in use, our mission is far from complete,” said Deirdre Lawrence Kittner, director of the Centers for Disease Control and Prevention’s (CDC) Office on Smoking and Health, in a statement. “We must remain committed to public health efforts to ensure all youth can live healthy, tobacco-free lives.”

    We’re headed in the right direction when it comes to reducing tobacco product use among our nation’s youth. But we can’t take our foot off the gas.

    The CDC and the U.S. Food and Drug Administration analyzed NYTS data to assess the use of nine tobacco products among U.S. middle school (grades 6–8) and high school (grades 9–12) students. Detailed information on use of e-cigarettes and nicotine pouches from the 2024 NYTS was recently published. The most recent release provides further data from the survey, including findings on other types of tobacco product use and detailed breakdowns of tobacco product use by school level, sex, race and ethnicity.

    Youth e-cigarette use declined to the lowest level in a decade; however, for the 11th year in a row, e-cigarettes remained the most commonly used tobacco product (5.9 percent) among youth who reported current tobacco product use. In 2024, nicotine pouches became the second most commonly used tobacco product among youth (1.8 percent), followed by cigarettes (1.4 percent), cigars (1.2 percent), smokeless tobacco (1.2 percent), other oral nicotine products (1.2 percent), heated-tobacco products (0.8 percent), hookah (0.7 percent) and pipe tobacco (0.5 percent).

    The report also found varying progress across population groups. For example, during 2023–2024, current use of any tobacco product, e-cigarettes and multiple tobacco products all significantly declined among female students, and current use of any tobacco product, e-cigarettes, cigars, hookah and multiple tobacco products declined among Hispanic students. In contrast, during 2023–2024, current use of any tobacco product, e-cigarettes, oral nicotine products, any combustible tobacco product and multiple tobacco products all increased among American Indian or Alaska Native students, and current use of nicotine pouches increased among white students. No significant changes occurred in current use of cigarettes, smokeless tobacco, heated-tobacco products and pipe tobacco for all assessed races and ethnic groups.

    “We’re headed in the right direction when it comes to reducing tobacco product use among our nation’s youth,” said Brian King, director of the FDA’s Center for Tobacco Products. “But we can’t take our foot off the gas. Continued vigilance is needed to continue to reduce all forms of tobacco product use among youth. Addressing disparities remains an essential part of these efforts to ensure that we don’t leave anyone behind.”

  • CORESTA Concludes

    CORESTA Concludes

    Photos: BAT

    The Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA) concluded its 2024 congress today.

    Hosted by BAT at the Edinburgh International Convention Centre, the congress opened Oct. 13 with 500 delegates, world-leading experts from member and nonmember organizations from more than 30 countries, attending. The theme was “Advancing Tobacco Harm Reduction Through Scientific Collaboration.”

    According to BAT, the event facilitated international dialogue on best practices in scientific research related to tobacco and nicotine alongside highlighting research findings and outcomes from CORESTA members.

    Danni Tower, group head of science and regulatory affairs at BAT, delivered the opening keynote speech, outlining the progress BAT has made in driving forward the tobacco harm reduction agenda. Tower called for more effective scientific collaboration in critical areas.

    All public health agencies, including WHO, should engage with CORESTA scientists to accelerate change.

    “The CORESTA Congress demonstrates the importance of collaboration amongst the entire scientific community to fully realize the public health opportunity of tobacco harm reduction,” said Tower in a statement. “We are proud to have hosted such an important event and strongly believe that positive global change is possible if all stakeholders recognize the potential of THR.

    “To achieve this, more open conversations like those we have had this week are needed across the scientific and regulatory landscape, which is why we have recently launched Omni—Forward Thinking for a Smokeless World—an open, evidence-based platform built on leading scientific research.”

    “Presentations at CORESTA demonstrated scientific advances underway in using new approaches to accelerate tobacco harm reduction,” said keynote speaker Derek Yach. “These extend from the use of genomics in agricultural sciences to the development of biomarkers in actual use studies and the application of AI tools to advance our knowledge of causes and effectiveness of interventions. All public health agencies, including WHO, should engage with CORESTA scientists to accelerate change.”

  • Philippines Urged to Regulate Flavors

    Philippines Urged to Regulate Flavors

    Photo: Borgwaldt Flavors

    Researchers urged the Philippine government to regulate flavored tobacco and mandate plain packaging, citing the country’s obligation as a signatory to the World Health Organization Framework Convention on Tobacco Control, reports The Manila Times.

    “Historically, tobacco companies have used flavoring agents to enhance the appeal of tobacco consumption, encourage initiation and experimentation of tobacco use, and sustain tobacco use,” researchers of the Ateneo de Manila University were quoted as saying. 

    “However, the Philippines currently does not regulate flavored tobacco products, despite the increasing market shares of flavored tobacco products and novel technologies, such as crushable capsules.”

    In a recent study of 106 cigarette and cigar products, only 62 turned out to have flavor descriptors.

  • Taxpayer Group Files Amicus Brief

    Taxpayer Group Files Amicus Brief

    Image: hafakot

    The Taxpayers Protection Alliance (TPA) submitted an amicus curiae brief to the U.S. Supreme Court in support of the Wages and White Lion Investments case, challenging the Food and Drug Administration’s regulation of e-cigarettes under the Family Smoking Prevention and Tobacco Control Act (TCA). The TPA argues that the FDA’s actions have been arbitrary, capricious and detrimental to public health.

    The brief contends that the TCA’s standard for determining what is “appropriate for the protection of the public health” is unconstitutionally vague, providing insufficient guidance to regulated entities and delegating excessive authority to the FDA. This vagueness has led to unpredictable enforcement, adversely affecting both taxpayers and adults who smoke and are seeking safer alternatives to conventional cigarettes.

    Furthermore, the TPA criticizes the FDA for failing to recognize the significant benefits of e-cigarettes as a smoking cessation tool, as acknowledged by leading health organizations such as Public Health England. According to the TPA, the TCA is clear on the need for the FDA to consider the impact of e-cigarettes on smoking cessation, yet the agency has abjectly failed to undertake this analysis. The TPA highlights the FDA’s stringent regulatory approach and high denial rates for new e-cigarette products, which the group says stifle market diversity and limit consumer choice, particularly harming adults who smoke and who might benefit from less harmful alternatives.

    The TPA also notes the FDA’s disregard for market realities and consumer preferences, particularly the benefits of open-system e-cigarettes that allow for customization and have been shown to be more effective for quitting smoking.

    The TPA urges the Supreme Court to uphold the 5th Circuit’s decision, affirming that the FDA’s regulatory approach under the TCA is arbitrary and capricious and violates due process. The TPA calls for a regulatory framework that adequately considers the benefits of e-cigarettes and gives regulated parties fair notice of how their products will be evaluated.