Category: News This Week

  • Share of Tobacco Producers Drops

    Share of Tobacco Producers Drops

    Image: Tobacco Reporter archive

    The share of leading tobacco producers in the Russian market dropped by 2.5 percentage points in the first half of 2023, according to research from the National Research Center of Competencies Against Illegal Turnover of Industrial Products reported by Tass.

    “According to results of the survey, the market share of products of the top 4 (country’s largest) manufacturers dropped by 2.5 percentage points,” the center said. “It stood at 83.3 percent.”

    Product share not related to the top 4 companies in the region was 16.7 percent compared to 14.2 percent in the previous year’s research. Counterfeit product share totaled 3.2 percent.

    “The decline in the share of illegal turnover of such products by 8 percent was also registered,” according to the center. “The overall share of the illegal turnover of tobacco products across the country stands at 13.3 percent in terms of the total number of smokers in the country.”

    Following Russia’s military invasion of Ukraine in 2022, tobacco multinationals vowed to withdraw from Russia or substantially scale back their operations, although some have found it difficult to do so as Moscow tightened restrictions on such transactions.

  • Former CTP Official to Lead Truth Initiative

    Former CTP Official to Lead Truth Initiative

    Kathy Crosby | Image: Truth Initiative

    Truth Initiative has named Kathy Crosby as its new CEO and president effective Oct. 2, 2023. Crosby is succeeding Robin Koval, who has served as CEO and president since 2013 and is retiring after a decade. “Kathy’s impressive background, extensive experience and passion for public health make her an exceptional choice to lead our organization,” said Truth Initiative board chair Mike Moore in a statement.

    Crosby joins Truth Initiative from the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), where she served as director of the Office of Health Communication and Education for the past 12 years. In this role, she spearheaded impactful public education, research and evaluation, and regulatory communication programs that have been instrumental in advancing the successful implementation of the Tobacco Control Act. With a 25-year career in behavior change marketing and advertising, Crosby brings a wealth of experience from both private and nonprofit sectors where she held various senior leadership roles; prior to her tenure at the FDA, she served as senior vice president and group campaign director of the Washington office of the Ad Council and as vice president of strategic planning at Arnold Worldwide, where she helped launch Truth Initiative’s iconic truth campaign.

    Crosby’s career at the FDA includes roles within the executive leadership team responsible for shaping national policies aimed at reducing tobacco-related disease and death. Her contributions encompass diverse areas, such as policy development, cutting-edge social science research, regulatory actions, communications and strategic outreach. Notable accomplishments under her guidance include her involvement in the formulation of health warnings for cigarette packages and advertisements, groundbreaking research on health equity, regulations for emerging tobacco products and the implementation of stringent marketing restrictions on newly authorized tobacco products.

    As the first director of health communication and education at the FDA’s CTP, Crosby oversaw vital initiatives that contributed significantly to reducing tobacco use. These include the creation of a comprehensive communication office, development of tailored advertising campaigns targeting at-risk populations, establishment of the Tobacco Education Resource Library, execution of a robust conference exhibit program and the launch of the FDA’s Vaping Prevention and Education Resource Center.

    “I’ve dedicated the last 25 years to using public education communications as a means of creating behavior changes that will help people live healthier lives—a passion that began when I worked on the first truth campaign,” said Crosby. “Leading Truth Initiative feels like I’m coming home, and I can’t think of a better time or place to continue advocating for positive change. The opportunity has never been greater to help people leave tobacco behind, and I eagerly look forward to the work ahead.”

    Koval said, “Kathy is an exceptional leader with a proven track record in public health communication, social science research and tobacco prevention. With her highly relevant experience and accomplishments, Kathy is well poised to lead Truth Initiative into the future, build on the organization’s lifesaving legacy and continue to make a significant impact on the health and well-being of our nation’s youth.”

  • ITC Revenue Up 11 Percent

    ITC Revenue Up 11 Percent

    Image: Tobacco Reporter archive

    ITC has released its financial results for the quarter ended June 30, 2023.

    Excluding the company’s agriculture business, gross revenue was up 10.6 percent year-over-year; profit before tax was up 18.2 percent year-over-year.

    The company saw continued strong performance by the cigarettes segment. Net segment revenue was up 10.9 percent year-over-year. Deterrent actions by enforcement agencies and relative stability in taxes helped sustain volume clawback from illicit trade.

    Agribusiness segment revenues were up 31 percent year-over-year, excluding wheat exports. Strong customer relationships and agile execution in leaf tobacco and value-added agri-products drove growth and margins.

    Amid a challenging operating environment and high base effect in some of its operating segments, the company sustained its strong growth momentum during the quarter driven by focus on customer centricity, accelerated digital adoption, execution excellence and agility.

    Gross revenue stood at INR168.43 billion, representing a de-growth of 7.3 percent year-over-year while profit before tax, at INR65 billion, grew by 18.2 percent year-over-year. Profit after tax grew by 17.6 percent year-over-year to INR49.03 billion.

  • FDA Tobacco Chief Discusses Relative Risk

    FDA Tobacco Chief Discusses Relative Risk

    Brian King (Photo: FDA)

    In an article published in Addiction magazine, Brian King, director of the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), explores the chances and considerations for informing adults who smoke cigarettes about the relative dangers of tobacco products, including e-cigarettes. He collaborated with Benjamin Toll, director of the Medical University of South Carolina Tobacco Treatment Program and co-director of the Lung Cancer Screening Program.

    The commentary highlights the findings of a recent survey about misperceptions of tobacco product harms, including cigarettes and e-cigarettes. The survey found that only about 20 percent of adults who smoke cigarettes believed e-cigarettes contain fewer harmful chemicals than cigarettes. While there are no safe tobacco products, the available scientific evidence indicates that tobacco products exist on a continuum of risk, with cigarettes being the most harmful. 

    The commentary notes that opportunities exist to educate adults who smoke about the relative risks of tobacco products, including e-cigarettes. However, these efforts should be accompanied by efforts to prevent youth tobacco product use; encourage first-line use of FDA-approved cessation therapies; and for adults who both smoke and use e-cigarettes, reinforce the importance of completely transitioning to e-cigarettes.

    The commentary further emphasizes that any education efforts on the relative risks of tobacco products must be evidence-based. In particular, it is important to assess the benefits among the intended population (i.e., adults who smoke) and risks among unintended populations (e.g., youth). Currently, FDA is in the early stages of a research effort to assess messaging about the continuum of risk of tobacco products among adults who smoke.

    Last week, the FDA announced a virtual listening session opportunity to verbally provide open public comment on the development of the new strategic plan, including proposed strategic goals. After introductions, the center will begin the listening session with an overview of the process used to develop the CTP’s strategic plan, including proposed goal areas.

    Registration is open for the virtual listening session on the development of the CTP’s five-year strategic plan, which will take place on Aug. 22 beginning at 10 a.m. EDT.

     

  • Secretariat Laments Industry Pressure

    Secretariat Laments Industry Pressure

    Image: Olexandr

    The Framework Convention on Tobacco Control (FCTC) Secretariat has warned participants in the 10th session of the Conference of the Parties (COP10) to the FCTC and the third Meeting of the Parties (MOP3) to the Protocol to Eliminate Illicit Trade in Tobacco Products against tobacco industry offers of travel and technical support.

    The convention Secretariat insists there is a fundamental and irreconcilable conflict between the tobacco industry’s interests and public health policy interests. In a statement on its website, the convention Secretariat reiterated its invitation to parties to observe Article 5.3 of the FCTC and urged them to be mindful of the recommendations 4.9 and 8.3 of the guidelines for implementation of FCTC Article 5.3.

    COP10 will take place Nov. 20–25 in Panama City. MOP3 will take place Nov. 27–30.

  • Ispire Appoints Top Executives

    Ispire Appoints Top Executives

    Image: CrazyCloud

    Ispire Technology has appointed Michael Wang as its co-chief executive officer. Wang previously served as chief financial officer. Concurrently, Daniel J. Machock was appointed as the new chief financial officer.

    Wang has assumed the role of co-chief executive officer alongside Tuanfang Liu. This strengthened leadership structure is designed to refine Ispire’s strategic direction and spearhead the company’s future growth. Ispire’s decision to elevate Wang stems from his record in strategic and financial leadership.

    “Having been deeply involved with Ispire’s progress, I look forward to partnering with Tuanfang to further the company’s growth and expansion,” said Wang in a statement. “Together, we share a mutual vision of global development and pioneering innovation within the company.”

    With extensive 25-year experience in financial strategy, including at Appetize Technologies and Chrome River Technologies, Ispire expects Machock to bolster its financial footing.

    “I am honored to take on the role of CFO at Ispire,” said Machock. “Eager to harness my financial expertise, I deeply value the company’s unwavering dedication to innovation in the cannabis vaping arena and am committed to contributing to its continued success.”

  • Flavors Help Smokers Quit

    Flavors Help Smokers Quit

    Image: Tobacco Reporter archive

    People are more likely to quit smoking combustible cigarettes by vaping if they receive help choosing the right flavor, plus supportive messages, according to new research reported by Filter.

    The journal Addiction recently published a study conducted by London South Bank University (LSBU) that involved 1,214 eligible participants who were heavy smokers and expressed interest in quitting by using vapes. The researchers recruited these participants through social media.

    They then tested five remote interventions aimed at helping people switch—mostly online surveys that produced recommendations based on individual responses. The interventions were “tailored device selection advice; tailored e-liquid nicotine strength advice; tailored e-liquid flavor advice; brief information on relative harms; and text message (SMS) support.”

    “Simple tailored advice on selecting a flavor along with supportive text messages could increase quit rates by 55 percent,” said Lynne Dawkins, professor of nicotine and tobacco studies at LSBU and one of the study authors.

    By offering different groups of participants different interventions (including all or none of them), the study sought to determine which combination was most effective.

    “In the adjusted model,” the researchers concluded, “the only significant interaction was a two-way interaction, advice on flavor combined with text message support, which increased the odds of abstinence [from cigarettes].”

  • New Hungarian Rules May Backfire

    New Hungarian Rules May Backfire

    Image: Tobacco Reporter archive

    Proposed amendments to Hungary’s rules on e-cigarettes and nicotine pouches may hinder access to safer alternatives for smokers, according to the World Vapers’ Alliance (WVA).

    “While it’s important to ensure the safety and proper labeling of nicotine products, it’s equally crucial to avoid excessive regulation that could impede the availability of harm reduction products for smokers looking to transition away from combustible cigarettes,” said WVA Director Michael Landl in a statement.

    The proposed amendments, with a maximum nicotine content of 17 mg per consumption unit, reflect an approach that may inadvertently limit the appeal of nicotine pouches to smokers seeking alternatives, according to critics.

    “Moreover, the WVA expresses concerns about the potential implications of the draft decree’s proposed modifications to vaping product regulations,” the organization wrote. “The amendments, which target unit packet definitions, nicotine amounts and labeling requirements, could impose unwarranted restrictions on vaping products. While addressing health concerns is important, the proposed changes should be carefully evaluated to ensure they do not deter smokers from adopting less harmful alternatives.”

    Whilst health and safety standards are crucial, regulations should be crafted with a balanced approach that considers both consumer health and the potential of these products to save lives, according to Landl. 

    “We encourage the Hungarian government to start accepting reality: harm reduction works. This year, Sweden is becoming the first smoke-free country due to a consumer-friendly harm reduction approach,” he said. “It is high time to learn from the Swedish experience and thereby save thousands of Hungarian lives. With a smart harm reduction approach, Hungary can become smoke-free.”

  • Zim Drops Offshore Funding Requirement

    Zim Drops Offshore Funding Requirement

    Photo: Taco Tuinstra

    Tobacco merchants operating in Zimbabwe will no longer have to source offshore the financing to support the production and buying of green leaf from contracted farmers, reports The Herald, citing an announcement by Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya.

    The change is expected to boost funding of tobacco using local money and is in line with the Tobacco Value Chain Transformation Plan, which seeks to raise localization of tobacco funding to 70 percent by 2025 to keep more value in Zimbabwe.

    Previously, merchants who failed to secure offshore financing were required to apply to the RBZ for authority to raise money on the local market.

    Currently About 95 percent of Zimbabwean tobacco production is financed using offshore loans under contract farming. The offshore pre-financing arrangement means tobacco merchants bring into the country part of export proceeds in the form of inputs. After exports, the bulk of the export proceeds are used to pay offshore loans.

    However, some stakeholders in the industry suspect the costs of inputs have in many cases been inflated, increasing foreign obligation and reducing export earnings.

    Indigenous merchants welcomed the RZB move. “This makes life easier for local merchants,” an executive with a local tobacco company was quoted as saying. “Seeking a special dispensation from the central bank to source local funding created a regulatory impediment for local players to jump through.

    Terrence Ngarwe, a Harare-based agriculture economist, said the new policy measure would see the country retaining more value from tobacco. “By having tobacco funded with local money, it means more money stays in the country,” said Ngarwe.

    While Zimbabwe Farmers Union Executive Director Paul Zakariya applauded the new rules, he urged the industry to move away from contract farming and boost the domestic processing and manufacturing capacity.

    “The financing mechanism through contract is not viable even if we are to fund tobacco using local money,” said Zakariya. “We need to alter the whole production environment to an extent that farmers can be self-financed and get loans from the banks and sell tobacco at the auction.”

     Zimbabwe produced a record 295 million kg of tobacco this season, due to favorable weather conditions, improved agronomic practices and better funding packages by merchants, according to the Tobacco Industry and Marketing Board.

  • Cautious Welcome for U.K. Insert Proposal

    Cautious Welcome for U.K. Insert Proposal

    Photo: Tobacco Reporter archive

    Smokers’ rights campaigners have given a cautious welcome to a U.K. government proposal to add pack inserts to tobacco products to encourage more smokers to quit.

    On August 14, the British government launched a consultation on a proposal the plan, which calls for adding leaflets inside cigarette packs to encourage smokers to quit, telling them they could enhance their life expectance and save lots of money if they abandon smoking.   

    Tobacco-related harms are estimated to cost British taxpayers an estimated £18 billion every year, including over £1.72  billion in costs to the state-funded National Health Service.

    SImon Clark

    “If the inserts provide constructive information about quitting there is some merit in the idea,” said Simon Clark, director of the smokers’ group Forest.

    “For example, inserting information about reduced risk products such as e-cigarettes, heated tobacco and nicotine pouches would make a lot of sense.

    “Targeting consumers with more anti-smoking messages, which are on the pack already, risks warning fatigue and won’t work.”

    While welcoming the proposal in principle, Clark expressed concern about who would bear the expense of adding the inserts. “If the cost is passed on to consumers, who already pay punitive rates of taxation on tobacco, it may be counterproductive because more smokers will switch to illicit tobacco products that won’t have inserts added,” he said.

    The pack inserts envisioned by the British government are already used in Canada, Australia and Israel, among other countries.