Category: News This Week

  • Maldives to Raise Tobacco Import Duties

    Maldives to Raise Tobacco Import Duties

    Image: RODWORKS

    The Maldives will raise the import duty on tobacco products from MVR3 ($0.19) to MVR8 from November onward, reports The Edition.

    In a post on social media platform X, President Mohamed Muizzu announced several actions to discourage the use of tobacco products. In addition to raising import duties, the government will increase its ad valorem take from tobacco products by 50 percent and ban smoking in public places.

    Earlier this week, the president announced that a ban on the import, sale, distribution, advertising and use of vapes would take effect in November.

  • U.S. States Fail to Harness Vaping’s Potential: Report

    U.S. States Fail to Harness Vaping’s Potential: Report

    Photo: pavelkant

    The Consumer Choice Center has released its second U.S. State Vaping Index, which looks at 50 states plus the District of Columbia. It reveals that only three states, including Alaska, North Dakota and Tennessee, received an A+ in the study for an evidence-based approach to vaping policy.  

    This rating means these states are in a position to harness the enormous potential of vaping as a harm-reduction tool while still letting consumers choose for themselves. Other states that perform well are Arizona, Michigan, Mississippi, Missouri, Montana, Texas, Alabama, Arkansas, Oklahoma and Wisconsin. 

    By contrast, 12 states have overwhelmingly embraced restrictive policies on vapers and vaping, including Utah (0 points), California (second to last at 5 points), Vermont (10 points), Oregon, New York, New Jersey, Nebraska, Massachusetts, Illinois, Hawaii, D.C. and Colorado (all at 15 points). The number of low scores has doubled since the 2020 edition of the Vaping Index

    “Vaping saves lives,” said Emil Panzaru, research director for the Consumer Choice Center. “If every smoker in the United States switched to vaping over 10 years, you’d have 6.6 million fewer premature deaths in the U.S.

    “Unfortunately, policymakers across America do not recognize that vaping is a valid harm-reduction substitute for traditional combustible tobacco products. Vapes are often mistakenly referred to as tobacco products, and in turn, targeted with draconian flavor bans, taxed higher than cigarettes, subject to registries meant to gatekeep the products, and faced with bans on online sales.

    “These policies deter consumers from switching away from the more dangerous habit of smoking and fuel black markets for vape products. The end result is a patchwork of state laws at odds with the most up-to-date public health practices from around the world.”

    The purpose of the U.S. Vaping Index is to inform consumers about vaping policies in their area and highlight the need for more informed and level-headed lawmaking. The Consumer Choice Center weighed five factors in the index:

    1) Whether the state considers vapes to be tobacco products;

    2) State-level vaping flavor restrictions;

    3) Requirements for state registries (which mirror the FDA-approved database);

    4) Additional excise taxes on vaping; and

    5) The presence or absence of online sales bans.

    “Let’s set the empirical record straight,” said Panzaru. “The best available research by authorities such as Public Health England recognizes that vaping is 95 percent safer than combustible tobacco for users. Evidence in the New England Journal of Medicine finds that vaping is twice as effective at smoking cessation than any nicotine tablet, patch or spray at helping people quit smoking. 

    “What’s more, a review of 15 different studies found little evidence of a supposed gateway effect leading teens down the path from vaping to smoking or hard substances.”

    “Rather than embracing policies that ignore the evidence and do not work, state authorities should commit to studying and learning from the example of Sweden, the first country to become smoke-free in Europe thanks to the research-driven recognition of vapes as harm-reduction tools,” Panzaru concluded. 

  • KT&G Remains Committed to Ginseng Business

    KT&G Remains Committed to Ginseng Business

    Photo: KT&G

    The Ginseng business remains a key part of KT&G’s plan for growth, the South Korean cigarette manufacturer said after receiving a bid for its Korea Ginseng Corp. (KGC) unit.

    On Oct. 13, Singapore-based activist fund Flashlight Capital Partners offered nearly KRW2 trillion ($1.47 billion) for KGC, which is 50 percent higher than the enterprise value analyst estimates mentioned at KT&G’s 2023 investor day.

    Flashlight Capital Partners believes that KT&G significantly undervalues its ginseng business and that the ginseng-tobacco pairing does not work.

    According to The Korea Herald, KT&G called Flashlight’s bid a “unilateral” offer. “The acquisition offer was unilaterally released without any discussion with the company,” KT&G wrote in a statement on Oct. 14. “We will look into the letter of intent sufficiently.”

    In the announcement, however, KT&G also stressed that KGC is a key part of its plan to nurture future growth drivers. It said it will put in all efforts to achieve the goals set under a mid-term business plan released last year.

    The plan, announced in January 2023, involves bolstering its investment and sales in three key areas: next-generation nicotine products, overseas businesses and KGC health supplement products.

    The activist fund has been pressuring KT&G to spin off its ginseng unit since 2022, citing low performance and undervaluation. KT&G’s board has argued that a spinoff may lead to a loss of synergy for both KT&G and KGC.

  • BAT Hosts Capital Markets Day

    BAT Hosts Capital Markets Day

    Photo: BAT

    BAT hosted a capital markets day for institutional investors and analysts at its Innovation Centre in Southampton, U.K., Oct. 16.

    During the event, CEO Tadeu Marroco and Chief Financial Officer Soraya Benchikh provided further details on the company’s transformation journey. BAT aims to become a predominantly smokeless business by 2035 by providing smokers with access to a wide range of smokeless products.

    According to BAT, the goal of the capital markets day was to demonstrate how the company’s science, innovation, breadth of capabilities and people can combine to achieve a smokeless world and deliver long-term sustainable value for all its stakeholders.

    In an announcement, the company said it remains on track to deliver low-single-digit organic revenue and adjusted profit from operations growth in 2024. It plans to progressively improve its delivery to 3 percent to 5 percent organic revenue growth and mid-single-figure adjusted profit from operations growth on an organic, constant currency basis by 2026.

  • Maldives to Ban Vapes

    Maldives to Ban Vapes

    Photo: siraphol

    The Maldives will ban e-cigarettes and related products, reports The Edition, citing an announcement by President Mohamed Muizzu on X. Lawmakers will receive proposed amendments to the island nation’s legislation this week.

    According to the post, the Maldives will outlaw import of all vape products and parts of vape devices from Nov. 15, 2024. Additionally, the use, possession, production, sale, advertisement and distribution of all vape products will become illegal from Dec.15, 2024.

    This decision follows numerous requests from concerned parents, health service providers and groups such as NDC Alliance and the Doctors Association and Nurses Association.

    According to figures shared with Mihaaru News by Maldives Customs Service, local businesses imported vapes worth MVR124.34 million between 2018 and July of this year.

    Currently, some 50 countries ban vapes, including at least five countries in Asia.

  • Tobacco Sales Boost Luxembourg Budget

    Tobacco Sales Boost Luxembourg Budget

    Image: alexlmx

    Luxembourg’s budget will be boosted by millions of additional euros in tax revenue due to higher than anticipated tobacco sales this year, reports The Luxembourg Times.

    The government expects cigarette sales to be around 6 percent higher than originally forecast in the 2024 budget, meaning that the state could reap a total of €700 million ($763 million) alone in additional excise duties. Including all taxes, the sale of tobacco products this year is expected to generate a total of €1.4 billion for the public purse.

    The direct benefit to the government’s finances from tobacco sales is expected to increase to €1.6 billion next year and €1.9 billion in 2028.

    Luxembourg will increase excise duties on tobacco products by a further 5.5 percent from next year, Finance Minister Gilles Roth said in his budget speech last week.

    While the tax increase raises the cost of the cheapest packet of cigarettes from €5.20 to €5.50, Luxembourg remains one of the cheapest places to buy cigarettes in Western Europe.

    A pack of 25 cigarettes currently costs €8 in the Grand Duchy compared with €10 in the Netherlands and €13 in France.

    Meanwhile, revenue from new nicotine products is “difficult to estimate” for 2024, a finance ministry spokesperson said. According to initial figures, around €1 million has been collected in taxes on these products between May and September.

    Overall excise revenue across all sectors is expected to hit €2.4 billion in 2025, up from €1.89 billion just three years previously.

  • Flashlight Offers to Buy KT&G’s Ginseng Business

    Flashlight Offers to Buy KT&G’s Ginseng Business

    Photo: Fan Chen

    Flashlight Capital Partners (FCP) wants to purchase KT&G Corp.’s Ginseng business. The activist investor, which is also a shareholder in KT&G, has submitted a letter of intent to acquire all shares of KT&G subsidiary Korea Ginseng Corp. (KGC).

    FCP is offering KRW1.9 trillion ($1.4 billion), which is 50 percent higher than the enterprise value analyst estimates mentioned at KT&G’s 2023 investor day.

    FCP believes that figure significantly undervalues the business. “It’s like watching parents who downplay their own child,” said FCP Managing Partner Sanghyun Lee in a statement. “We see immense potential in the poor kid. We aim to develop Korea ginseng into a global brand, comparable to Manuka honey or Maotai.”

    Despite the growing demand for health food, KGC’s operating profit halved from KRW202.1 billion in 2019 to KRW103.1 billion in 2023, and KT&G’s guidance indicates further decline in 2024.

    FCP has argued that the tobacco-ginseng pairing was a “wrong marriage,” and that KGC’s value is not reflected in KT&G’s stock price at all. Since 2022, FCP has advocated for a horizontal spinoff of KGC, but KT&G’s board rejected the proposal in 2023.

    Lee compared KT&G’s stance on KGC as “Not good enough for me, but too good for others.” He emphasized the need for either a spinoff or sale of KGC and warned that “If KT&G’s board opposes our proposal without a proper rationale, it will only prove that they are serving the interests of management rather than those of the shareholders.”

    Headquartered in Singapore, FCP has repeatedly pushed for changes at KT&G. In recent years, it has pushed for a greater emphasis on smoking alternativesmore transparent procedures in filling the company’s leadership, and a new CEO pay structure.

  • Activists Celebrate Declining Smoking Rates

    Activists Celebrate Declining Smoking Rates

    Photo: sezerozger

    New Zealand has achieved its Smoke-Free 2025 goal ahead of schedule, with smoking rates plummeting to unprecedented lows, according to the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA).

    Data from the most recent New Zealand Health Survey reveals that smoking rates have fallen dramatically, particularly among youth. The decline has been so significant that statisticians now struggle to accurately measure the small proportion of young smokers due to sample size limitations, says the CAPHRA, which attributes the success to New Zealand’s accommodation of new nicotine products as tools to help nicotine users transition away from cigarettes.

    “New Zealand’s success in reducing smoking rates is a testament to the country’s progressive approach to tobacco harm reduction,” said Nancy Loucas, executive coordinator of the CAPHRA. “By embracing vaping and other less harmful alternatives, we’ve seen smoking rates drop from 11.9 percent in 2020 to an astounding 6.8 percent in 2023. This is a clear indication that our strategy is working.”

    Our success story should be a wake-up call for countries like Australia who are still clinging to prohibitionist policies.

    The success is particularly notable among young people, with youth smoking rates reaching historic lows. “The fact that we’re having difficulty measuring youth smoking rates due to their minuscule prevalence is a cause for celebration,” Loucas added. “It’s a clear sign that we’re winning the battle against smoking-related harm.”

    Despite this undeniable success, some in the tobacco control and public health sectors seem reluctant to acknowledge the effectiveness of New Zealand’s approach, according to the CAPHRA.

    “It’s perplexing that some individuals in tobacco control can’t seem to accept our successful strategy,” said Loucas. “We’ve achieved what many thought impossible, yet instead of celebrating, they’re focusing on potential issues with vaping. We need to recognize this victory and continue supporting policies that have proven effective in reducing smoking rates.”

    The CAPHRA urges policymakers and health advocates worldwide to look to New Zealand as a model for successful tobacco harm reduction. The organization emphasizes the importance of embracing evidence-based approaches that include a range of less harmful alternatives to smoking.

    “Our success story should be a wake-up call for countries like Australia who are still clinging to prohibitionist policies,” said Loucas. “It’s time to put aside preconceived notions and focus on what works—a pragmatic harm reduction approach that prioritizes public health over ideology.”

  • Zimbabwe: Preparation for Growing Season on Track

    Zimbabwe: Preparation for Growing Season on Track

    Photo: Taco Tuinstra

    The Zimbabwean tobacco industry is increasingly confident it will achieve 300 million kg in the 2024–2025 season, reports The Herald.

    In a statement on Oct. 10, Tobacco Industry and Marketing Board Public Affairs Officer Chelesani Tsarwe said preparations for the upcoming growing season were progressing well, with most farmers expressing optimism about the cropping period.

    With consistent rainfall and moderate temperatures expected, farmers are better positioned to maximize their outputs than they were in the most recent growing season.  

    “We are optimistic about achieving the set target, thanks to the favorable weather forecast,” said Tsarwe.

    Despite the drought caused by El Nino, tobacco fared relatively well last year. The yield decreased by 20 percent from the previous season, reaching about 231 million kg in 2023.

    As of Oct. 4, 2024, Zimbabwe had exported 159.43 million kg of tobacco valued at $833.99 million compared to 143.23 million kg during the same period last year.

    “The average export price this year stands at $5.23, marking an increase from $4.99 recorded during the same period last year,” said Tsarwe.

    Last year, the country earned $1.3 billion from tobacco exports, up 30 percent over 2022.

    Eager to capture more value from the tobacco business, the government wants Zimbabwe to boost leaf output and move into value-added activities such as cigarette manufacturing.

  • French City Offers Honey in Exchange for Butts

    French City Offers Honey in Exchange for Butts

    Image: Dionisvera

    The French city of Darnetal is offering residents honey in exchange for cigarette litter, reports Euro Pulse.

    For each 1.5 liter bottle filled with butts, volunteers receive a pot of honey from local apiaries.

    According to city hall estimates, 200 kilograms of cigarette butts end up on the sidewalks of Darnetal every year despite the fact that France punishes litterbugs with a fine of €135 per improperly discarded butt.

    The plastic contained in the filters presents risks for water and soil, poisoning people and animals. The initiative is designed to motivate people to think about their contribution to environmental pollution.

    European cities have been getting creative in tackling the problem of cigarette litter. In January, Slovakia announced a project to turn discarded butts into asphalt. The first road made of cigarette butts was constructed in the city of Ziar nad Hronom.