Category: News This Week

Reynolds Earns Water Stewardship Cert

Photo: digieye
Two Reynolds American Inc. manufacturing U.S. facilities have achieved Alliance for Water Stewardship (AWS) Certification. The American Snuff Co. facility in Clarksville, Tennessee, and R.J. Reynolds Tobacco Co.’s Whitaker Park site in Winston-Salem, North Carolina, both recently earned the designation. Reynolds Operations Center (ROC) in Tobaccoville, North Carolina, received AWS certification in 2022.
The AWS Standard is a globally applicable framework for improving water sustainability performance. It enables factories, facilities, and other water-using sites to better understand their water use and impact and to work collaboratively and transparently for sustainable watershed management. Receiving this certification showcases that the Clarksville and Whitaker Park sites have implemented AWS’ best practices in five important areas: good water governance, sustainable water balance, good water quality status, protection of important water-related areas, and safe water, sanitation, and hygiene for all.
“Attaining AWS Certification at two more Reynolds sites underscores our commitment to protecting natural resources that we rely on to run our business,” said Bernd Meyer, executive vice president of operations at Reynolds, in a statement. “I’m proud of our teams’ commitment to running efficient operations and being good water stewards in the communities where we work and live.”
Reynolds’ efforts to use water efficiently across its facilities will progress even further with the addition of the recently announced WaterHub planned for the ROC in Tobaccoville, North Carolina. The advanced water reclamation plant, a product of a NextEra Energy Resource subsidiary, is projected to reclaim more than 60 million gallons of water annually.
August 3, 2023
BMJ Affiliate to Buy Mativ Papers Business

Photo: SWM
BMJ affiliate Evergreen Hill Enterprise has offered $620 million to acquire Mativ Holding’s engineered papers (EP) business, which supplies papers to the tobacco industry.
“While a solid business, EP’s concentration in the tobacco industry is not aligned with Mativ’s long-term ambition and presents a more attractive value proposition under new strategic ownership,” said Mativ CEO Julie Schertell in a statement. “Our talented and dedicated employees will continue to deliver outstanding products and service to EP’s long-standing customer base, and we are confident in a smooth transition.”
Mativ intends to use the proceeds of the proposed transaction to pay down debt.
Subject to customary closing conditions, including regulatory approvals and satisfaction of the consultation process with the applicable works councils in France, the proposed transaction is expected to close in the fourth quarter of 2023
Based in Singapore Evergreen Hill Enterprise is part of a successful, Indonesian-based privately held group of diversified companies serving the tobacco, banking and consumer electronics industries, among other sectors.
The buyer is expected to fund the proposed transaction with existing cash balance and is not dependent on capital markets for financing
Mativ Holding was created out of the 2022 merger between Schweitzer-Mauduit International and Neenah, two leading global manufacturers of specialty materials.
BMJ said its business would continue to operate as usual. “There will not be an integrated structure between BMJ and SWM so that both companies will maintain the autonomy of action and confidentiality of projects,” the company wrote in a statement.
“Having said that, BMJ is delighted to be affiliated with SWM, a prominent supplier of engineered papers. This affiliation will open opportunities for BMJ to collaborate with SWM in some strategic areas, including, but not limited to offering complimentary geographic reach and product lines, ultimately providing comprehensive and unparalleled value to the customers and stakeholders.”
August 2, 2023
Malaysia: Illicit Tobacco Share Down Slightly

Photo: K Stocker
The share of Malaysia’s illicit cigarette market declined slightly this year, reports the New Straits Times.
According to a recent survey, Illegal products accounted for 55.3 percent of the domestic cigarette market in May, down 1.3 percent from a year ago.
The Confederation of Malaysian Tobacco Manufacturers (CMTM) attributes the drop to new anti-illicit measures, including the strict control on the shipment of tobacco products and increased enforcement efforts.
In Kelantan, the illicit incidence had declined to 50.2 percent compared to 70.6 percent in 2020 as a result of heightened enforcement actions in the state.
Despite the progress, the prevalence of illicit cigarettes remains extremely high by international standards. While legal cigarettes retail for between MYR9 ($1.98) and MYR12, the same products can be purchased for between MYR4 and MYR8 on the black market.
The government misses out on an estimated MYR5 billion in annual revenues due to tax-avoiding cigarettes.
The survey report also highlighted the notable increasing presence of cigarette packs with fake tax stamps in the market. Based on the study, the incidence of cigarette packs with fake tax stamps has increased to 8.5 percent from 4.9 percent in 2018.
Concerned about the persistence of illicit trade, the CMTM urged the Parliamentary Special Select Committee to carefully consider the impact of the Control of Smoking Products for Public Health Bill 2023 that is currently under consideration in Malaysia.
Among other measures, the proposed legislation would prevent those born in or after 2007 from buying tobacco or vapes. Policies should be based on substantiated science-based evidence and be designed to prevent any unintentional proliferation of illicit cigarettes, the CMTM said
August 2, 2023
Turning Point Releases Second-Quarter Results

Image: Tobacco Reporter archive
Turning Point Brands (TPB) announced financial results for the second quarter ended June 30, 2023.
Total consolidated net sales increased 2.6 percent to $105.6 million compared to the second quarter of 2022. Zig-Zag Products net sales increased by 1.1 percent. Stoker’s Products net sales increased by 7.3 percent. Creative Distribution Solutions net sales decreased by 1.3 percent. Gross profit increased 2 percent to $52.5 million, and net income increased 83 percent to $9.9 million. Adjusted net income increased 8.4 percent to $15.3 million.
“Our second-quarter results demonstrated continued progress against our plan,” said TPB President and CEO Graham Purdy in a statement. “The Zig-Zag segment grew double-digits sequentially from the first quarter as trade inventory normalized. Stoker’s had another solid quarter of performance led by double-digit growth in Stoker’s MST [moist smokeless tobacco]. We opportunistically purchased another $15.1 million in aggregate principal amount of our convertible notes during the second quarter while maintaining a strong cash balance. Given our solid first-half performance, we are raising our guidance for the full year.”
For the second quarter, Zig-Zag Products net sales increased 1.1 percent to $46.7 million. TPB’s Canadian and other smoking accessories businesses saw strong growth during the quarter, which was partially offset by declines in the U.S. rolling papers and wraps businesses.
For the quarter, the Zig-Zag Products segment gross profit was steady at $26.4 million. Gross margin declined 60 basis points to 56.6 percent, driven primarily by product mix.
“Our e-commerce business had another quarter of double-digit growth as we continue to build our omnichannel presence,” said Purdy. “We remain encouraged by our prospects with secular cannabis consumption growth trends driving demand for our products.”
For the second quarter, Stoker’s Products net sales increased 7.3 percent to $36.1 million. Double-digit growth of MST offset a decline in loose-leaf chewing tobacco. For the second quarter, total Stoker’s Products segment volume increased 0.7 percent while price/mix increased 6.6 percent.
For the quarter, the Stoker’s Products segment gross profit increased 10.4 percent to $20 million. Gross margin expanded 160 basis points to 55.4 percent due to MST pricing gains.
“Stoker’s continues to benefit from strong market share gains in both the MST and loose-leaf chewing tobacco categories as its value proposition continues to resonate with consumers,” continued Purdy.
August 2, 2023
Activists Slam Report

Photo: Tom
The World Health Organization’s recently published report on the global tobacco “pandemic” discounts the impact of harm reduction and vaping, according to Michael Landl, director of the World Vapers’ Alliance
“While filled with biased anti-vaping scaremongering and unfounded claims, the report’s overall direction is perplexing. Instead of prioritizing the crucial goal of reducing smoking rates, the WHO is directing its focus on vaping, which happens to be the most potent smoking cessation tool available.”
In the report’s foreword, Director-General Tedros Adhanom Ghebreyesus asserts that vaping would undermine anti-smoking efforts, claiming that e-cigarettes are harmful to both the people using them and those around them.
“Regrettably, the WHO appears to ignore reality and scientific evidence,” said Landl in a statement. “Countries that adopt an open and consumer-friendly approach to harm reduction products achieve significantly better results than those following WHO’s misguided path. Comparative data from Sweden and the United Kingdom demonstrate their remarkable success in reducing smoking rates, surpassing countries with a negative harm reduction approach by a wide margin.”
The WHO report also claims a gateway effect from vaping to smoking and alleges that vaping flavors target children. It further highlights that 121 countries have adopted vaping regulations, with 34 completely banning vape sales.
“The outdated and debunked theories propagated by the WHO report pose risks to public health,” said Landl. “The notion of a gateway effect from vaping to smoking lacks evidence. Furthermore, flavors are essential for adults as they play a crucial role in helping millions of smokers transition to vaping. Additionally, celebrating countries which ban a way less harmful alternative for smokers is absurd.”
According to a review of 15 studies, “a true gateway effect in youths has not yet been demonstrated,” according to Landl. Factors such as anxiety, parental smoking habits, peer attitudes and household income must be considered, he noted. Another study found that vaping is not a gateway to smoking but rather that negative circumstances in teenagers’ lives lead to risky behaviors. According to the Yale School of Public Health, vaping flavored e-cigarettes is linked to a 230 percent increase in adult smoking cessation, and a flavor ban, as suggested by the WHO, could drive five out of 10 vapers back to smoking or the black market.
“The lack of empathy for smokers and vapers, coupled with the outright denial of scientific findings, will have severe consequences for many lives,” said Landl. “The WHO seems to have lost sight of its ultimate goal – reducing smoking rates. While we all agree that teenagers should not smoke or vape, the report notes that only 45 percent of countries ban e-cigarette sales to minors, and 10 percent of countries impose no age restrictions on cigarette purchases. Why not address these real-life challenges? The WHO systematically disregards an abundance of scientific evidence supporting the benefits of vaping, not to mention the experiences of millions of vapers. Vaping is 95 percent less harmful than smoking and a more effective method to quit smoking compared to traditional products like gum and patches. Restricting or banning access to vaping will only lead to unnecessary loss of lives.”
August 1, 2023
Filtrona Opens New Filters Center

Photo: Filtrona
Filtrona has opened a new Centre of Excellence (COE) in Budapest, Hungary. Combining multiple advanced filter manufacturing machines, the COE will increase the company’s production capacity and speed-to-market of sustainable filter solutions. The COE enables tobacco companies to develop and manufacture a portfolio of sustainable tobacco products by leveraging Filtrona’s expertise in innovative filter designs, processing methods and knowledge of materials.
The COE combines Filtrona’s extensive experience in manufacturing non-woven filters with advanced, high-speed production technology and the latest testing methods to produce sustainable filters for various tobacco product applications. These include cigarettes, heated tobacco products, cigarillos, cigars, and RYO and MYO cigarettes.
Globally, consumers and regulators are pushing for more environmentally sustainable solutions for consumer goods, according to Filtrona. Likewise, the tobacco industry is seeking plastic-free alternatives by focusing on the use of wood pulp based non-woven materials, such as papers. The EU Single-Use Plastic Directive provides a roadmap for the phasing-out of single-use plastics, which includes cellulose acetate tow. Using the EU Directive as a blueprint, tobacco companies in territories outside the EU are expected to follow a similar path in reducing single-use plastics over time.
“As the world’s leading producer of sustainable filter solutions, Filtrona is advancing our sustainability journey by launching our Centre of Excellence to expand our portfolio of sustainable products at a faster pace,” said Filtrona’s Global Director of Innovation and ESG Hugo Azinheira. “With the EU SUPD driving a wider adoption of plastic-free tobacco products, our new production line has the capability to meet the evolving needs of customers, consumers, and regulators rapidly.”

August 1, 2023
Altria Reports Quarterly Results

Photo: Altria Group
Altria Group reported net revenues of $6.51 billion for the second quarter of 2023, down 0.5 percent from the comparable 2022 period. Revenues net of excise taxes increased 1.2 percent to $5.43 billion.
In the first half of 2023, Altria Group reported revenues of $12.23 billion, 1.7 percent less than in the first six months of the prior year. Revenues net of excise taxes increased 0.1 percent to $10.2 billion during the first half of 2023.
“We had a solid first half of the year and we continue on our exciting journey towards Moving Beyond Smoking,” said Altria CEO Billy Gifford in a statement. “We completed our acquisition of NJOY and delivered strong business results, growing adjusted diluted EPS by 5 percent in the first half. And we returned $3.8 billion to shareholders while investing in pursuit of our Vision.”
“We look forward to executing our commercial plan for NJOY in the second half of the year, and we reaffirm our guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.89 to $5.03. This range represents an adjusted diluted EPS growth rate of 1 percent to 4 percent from a $4.84 base in 2022.”
August 1, 2023
Stick Warnings Take Effect in Canada

Image: Health Canada
A new rule requiring warning labels on individual cigarettes in Canada takes effect today, reports The Canadian Press.
The move, announced earlier this year, makes Canada the first country to take that step to deter smoking.
Under the new law, cigarette manufacturers will be required to print messages in English and French on the paper around the filter, warning smokers about the risk of damage to organs, impotence and leukemia, among other diseases.
Manufacturers have until the end of July 2024 to ensure the warnings are on all king-size cigarettes sold, followed by regular-size cigarettes and little cigars with tipping paper and tubes by the end of April 2025.
Rob Cunningham, a senior policy analyst at the Canadian Cancer Society, believes the labels will dissuade teens leaning toward taking up the habit and encourage nicotine-dependent adults to quit.
Dozens of studies in Canada and elsewhere show the effectiveness of printing warnings on each cigarette, he noted.
Tobacco advertising, promotion and sponsorship are banned in Canada, with warnings on cigarette packs dating back to 1972.
In 2001, Canada became the first country to require tobacco companies to print pictorial warnings on the outside of cigarette packages and include inserts with health-promoting messages.
Federal rules ban packaging that includes brand colors or trademarks.
The tobacco industry has warned against unintended consequences. The National Coalition Against Contraband Tobacco, which is funded by Canada’s leading cigarette manufacturers, warned in June that cheaper, colorful black-market packs free of health warnings attract young smokers and funnel more money to organized crime.
While acknowledging that big tax hikes or sales bans would indeed benefit the black market, Cunningham believes that gradual price boosts and more strident messaging can bring down smoking rates.
“The only real reason that they can oppose something is because it’s going to have a reduction in sales— and that is exactly the point,” he said of the manufacturers.
August 1, 2023
UKVIA Announces Annual Forum

Photo: UKVIA
The U.K. Vaping Industry Association (UKVIA) annual Forum and Industry Recognition Awards Dinner will take place at the QEII Centre in London on Nov. 10, 2023.
Under the theme, “Accelerating Action to Secure a World Without Smoking,” the event will feature sessions focusing on harm reduction, illicit trade and sustainability, among other topics.
Secretary General of the China Electronic Chamber of Commerce Ao Weinuo will be giving a keynote presentation on China’s commitment to change. Also included on the conference agenda is a dialogue on the upcoming general election, which will explore how the U.K. industry should prepare for a possible change in government and will ask how to retain the existing “parliamentary momentum” around vaping.
“We have, and I’m confident will continue to, make significant strides in putting forward the harm reduction benefits of vaping on the political front, but it’s no secret the landscape could soon shift and we need to be prepared,” said UKVIA Director-General John Dunne in a statement.
Following the forum, the UKVIA will host its annual Industry Recognition Awards dinner.
According to Dunne, the awards are an opportunity to recognize the “outstanding contributions and achievements” of individuals and organizations both inside and outside the industry.
Last year, 500 delegates and guests attended the UKVIA Forum and Awards. This year’s event is expected to attract an equally high number of visitors.
August 1, 2023
More People Protected by Policies: Report

Photo: Maksym Yemelyanov
Seven out of 10 people worldwide are now protected by at least one “best practice” tobacco control policy—five times more than in 2007, according to a new World Health Organization report supported by Bloomberg Philanthropies.
Global smoking rates have fallen over the past 15 years, a development that the WHO attributes in part to its MPOWER tobacco control measures. Without this decline there would be an estimated 300 million more smokers in the world today, according to the global health body.
Almost 40 percent of countries have completely banned smoking from public indoor places. The report rates country progress in tobacco control and shows that two more countries, Mauritius and the Netherlands, have achieved best-practice level in all MPOWER measures, a feat that only Brazil and Türkiye had accomplished until now.
“These data show that slowly but surely, more and more people are being protected from the harms of tobacco by WHO’s evidence-based best-practice policies,” said WHO Director-General Tedros Adhanom Ghebreyesus in a statement. “I congratulate Mauritius on becoming the first country in Africa, and the Netherlands on becoming the first in the European Union to implement the full package of WHO tobacco control policies at the highest level. WHO stands ready to support all countries to follow their example and protect their people from this deadly scourge.”
“While smoking rates have been going down, tobacco is still the leading cause of preventable death in the world – largely due to relentless marketing campaigns by the tobacco industry,” said Michael R. Bloomberg, WHO global ambassador for noncommunicable diseases and injuries and founder of Bloomberg Philanthropies. “As this report shows, our work is making a big difference, but much more remains to be done. By helping more countries implement smart policies, backed by public opinion and science, we’ll be able to improve public health and save millions of more lives.”
August 1, 2023