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Category: News This Week

  • Indonesian Groups Reject Tobacco Tier Tax Proposal

    Indonesian Groups Reject Tobacco Tier Tax Proposal

    A coalition of Indonesian civil society groups rejected a government proposal to expand the country’s tobacco excise system by adding a new tariff tier, arguing it could undermine public health objectives and increase corruption risks. The Coalition Save Our Surroundings (SOS), which includes CISDI, Seknas FITRA, and Indonesia Corruption Watch, said the plan contradicts the primary purpose of excise policy of controlling consumption, and instead prioritizes revenue generation. Officials proposed adding a ninth tier to the existing structure to encourage illegal producers to enter the formal market, with potential implementation as early as May 2026.

    Critics argue the move could complicate the system and enable “downtrading,” where consumers shift to cheaper products, while also creating opportunities for manipulation and weak enforcement. CISDI recommended simplifying the current structure rather than expanding it, and ICW warned that additional tiers could open new avenues for corruption through product misclassification. Government officials maintain the policy could help increase revenue and curb illicit trade, but civil society groups say it does not address underlying enforcement challenges.

  • Cambodia Solidifies Public Tobacco Ban

    Cambodia Solidifies Public Tobacco Ban

    Cambodia’s Ministry of Education, Youth and Sport issued a directive banning the use, sale, and advertising of all tobacco products, including e-cigarettes, across a wide range of public spaces, particularly those linked to education and sports. The ban covers schools, training centers, dormitories, workplaces, gyms, and sports venues, and also prohibits the distribution and promotion of such products in and around these locations. Authorities have been instructed to implement health awareness programs and work with parents to identify and report violations for enforcement action.

    Education Minister Hang Chuon Naron said the measures align with broader government restrictions targeting the import, sale, possession, and production of electronic smoking devices and shisha products. Health experts noted that tobacco use remains prevalent despite existing public smoking bans and called for stronger enforcement.

  • Drew Estate Expanding Operations into D.R.

    Drew Estate Expanding Operations into D.R.

    Drew Estate announced plans to expand into the Dominican Republic with a new manufacturing and agricultural project, Drew Dominicana, expected to open in early 2027, according to the Premium Cigar Association. The development includes a 73,000-square-foot cigar factory in Santiago and a dedicated tobacco farm in Villa González, marking the first time the company will produce cigars outside of Nicaragua, where its operations have historically been based. The company said most production will remain at its Estelí facility, while certain brands, including Deadwood Tobacco Co. Dominicana and Undercrown El Tigre Dominicano, are expected to transition to the new site once operational.

    The project will focus on tobacco cultivation, cigar production, and consumer-facing experiences. Drew Estate said the farm will grow tobacco exclusively for the company and will be led by Dominican cultivator Manuel Peralta. Company executives described the expansion as a long-term strategic investment, with additional details on production and future releases to be announced as development progresses.

  • 5th Circuit Considering if FDA Overstepped in Vape Flavor Regs

    5th Circuit Considering if FDA Overstepped in Vape Flavor Regs

    A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit heard oral arguments this week in a case brought by seven small vape-liquid companies challenging the FDA’s denial of marketing authorization for flavored electronic nicotine delivery systems. The companies argue the FDA rejected their applications based on a comparative efficacy requirement they say was not disclosed before the 2020 PMTA deadline, in violation of the Tobacco Control Act.

    The FDA defended the denials, saying manufacturers must prove their specific products are appropriate for the protection of public health. Government counsel argued that non-tobacco flavors add youth-use risk and that applicants failed to show added adult switching benefits over tobacco-flavored products.

    The panel questioned both sides on whether the FDA’s approach was lawful adjudication or rulemaking in practice. Courthouse News Service said, this “ruling could affect thousands of pending applications and clarify how much procedural leeway the FDA has when reviewing the flood of vape products submitted after the 2020 PMTA deadline.”

  • Report: Misconceptions Hurting Alternative Nicotine Products

    Report: Misconceptions Hurting Alternative Nicotine Products

    A new report highlights growing public misperceptions about nicotine products, with 59% believing that vaping is as harmful to health as smoking, a number that increases to 72% among 18–24-year-olds. The “Nicotine Product Harm Perception Report 2026,” released by Northerner and Haypp, surveyed 2,000 people in the UK, with nearly half believing vaping exposes users to more chemicals than cigarettes, and 60% registering as misinformed or uninformed when comparing nicotine pouches’ harm to smoking.

    The findings point to a shift in risk perception that contrasts with established public health messaging on relative harm. The report links these beliefs to broader narratives around a perceived “vape epidemic,” with 78% of respondents agreeing such an epidemic exists despite vaping prevalence estimated at around 10% of adults. This disconnect suggests that public understanding may be shaped more by media framing and social discourse than by underlying usage data.

    The report also cites inconsistent policy approaches and negative coverage as contributing factors to mixed public messaging around vaping and harm reduction. Experts warn that confusion over relative risks could affect smoking behavior. Dr. Marina Murphy, the senior director of scientific affairs at Haypp Group, said misperceptions may reduce incentives for smokers to switch to alternatives, potentially slowing or reversing declines in smoking rates.

     “Alarmist messaging and negative framing risk doing real damage,” Murphy said. “If smokers are put off switching, we risk undoing years of progress in reducing smoking rates. People need clear, balanced information about nicotine products so they can make informed choices.” 

  • Aussies Seize Huge Illicit Haul in Retailer Raids

    Aussies Seize Huge Illicit Haul in Retailer Raids

    Authorities in Canberra, Australia, seized more than 455,000 illicit cigarettes, along with 26 kg of loose-leaf tobacco, 6,000 cigars, more than 1,600 vapes, and about $27,000 in cash following coordinated raids on six retail outlets. The operation, led by the Australian Capital Territory (ACT) government and Australian Border Force with support from ACT Policing, also identified six people of interest linked to the illicit tobacco trade. The total seizure could be worth as much as A$580,000 ($418,000).

    Officials said the enforcement action reflects growing concern about the scale of Australia’s black market, estimated at roughly A$10 billion ($7.2 billion), and its links to organized crime. ACT Health Minister Rachel Stephen-Smith said the impact on communities and legitimate retailers, while police highlighted the role of asset seizures in disrupting illegal activity.

  • Altria Reports Q1 2026 Results; Reaffirms Full-Year Guidance

    Altria Reports Q1 2026 Results; Reaffirms Full-Year Guidance

    Altria Group reported a strong start to 2026, delivering solid financial growth and reaffirming full-year earnings guidance. First-quarter net revenues rose 3.2% to $5.4 billion, while adjusted diluted earnings per share (EPS) increased 7.3% to $1.32, driven by higher operating income and reduced share count. The company continues to generate significant cash flow, enabling shareholder returns through $1.8 billion in dividends and $280 million in share repurchases during the quarter. Management maintained its full-year adjusted EPS outlook of $5.56 to $5.72, reflecting confidence in continued performance despite macroeconomic uncertainty.

    Operationally, Altria’s smokeable products segment remained the primary earnings driver, supported by pricing strength and Marlboro’s continued leadership in the premium category. While overall cigarette shipment volumes declined due to industry contraction, income growth and margin expansion offset these pressures. In the oral tobacco segment, the on! nicotine pouch brand showed volume growth and ongoing national expansion, though competitive dynamics and shifting product mix weighed on margins. The company continues to balance investment in emerging smoke-free products with maintaining profitability in its core combustible business.

    Strategically, Altria said it is advancing its “Moving Beyond Smoking” vision by investing in smoke-free alternatives and long-term growth initiatives. The company is navigating moderated e-vapor category growth, regulatory constraints, and evolving consumer preferences, while also investing in manufacturing capabilities and cost-efficiency programs. Although near-term challenges include declining cigarette volumes and competitive pressure in oral products, Altria said its strong cash generation, disciplined capital allocation, and diversified nicotine portfolio position it to sustain earnings growth and shareholder value over the long term.

  • JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    “Cost pressure means consumers often cannot afford to think about safety,” was the message from Joseph Anak Janting, president of Malaysia’s Dayak Transformation Association (TRADA). The comment came as officials examined the nation’s thriving illicit tobacco market, not just its financial impact, but also the unknown ingredients being ingested from unregulated products.

    Japan Tobacco International (JTI) Malaysia released data today (April 30) that shows 57% of the Malaysian tobacco market is illicit, a number that climbs near 80% in regions such as Sabah and Sarawak, where the market is driven by a significant price gap. Legal cigarettes cost over RM20 ($5) per pack compared to illicit products that sell for as little as RM4 to RM8 ($1 to $2), following recent excise tax increases and retail restrictions. In Sarawak, where the average monthly household income is RM5,504 ($1,376) and rural incomes are significantly lower, Janting said the price gap is not a minor consideration; it is the difference between affording cigarettes and not affording them.

    JTI identified three primary categories of illicit products: counterfeit tax-stamp cigarettes, which have doubled to 16% market share since 2023; smuggled “whites” lacking tax stamps; and illegally imported kretek cigarettes. Officials said expansion of the illicit trade is contributing to an estimated RM4 billion in annual lost tax revenue, with enforcement challenges compounded by cross-border smuggling and counterfeit production networks.

  • Belgium Retail Group Proposes Generational Tobacco Ban

    Belgium Retail Group Proposes Generational Tobacco Ban

    Belgian retail federation Comeos is advocating for a gradual phase-out of tobacco sales to younger generations, proposing a policy that would permanently ban purchases for anyone born on or after January 1, 2009. The approach mirrors the UK’s “smoke-free generation” model and could also extend to vaping products, to reduce tobacco use over time as older consumers age out of the market.

    The proposal comes as Belgium prepares to revise its tobacco retail framework after the Constitutional Court struck down a ban on supermarket tobacco sales based on store size. Health Minister Frank Vandenbroucke has since pushed for broader restrictions, including a ban on tobacco sales in all food stores, while allowing sales to continue in specialized outlets such as newsagents.

  • Singapore’s Smoking Rates Fall as Costs Rise

    Singapore’s Smoking Rates Fall as Costs Rise

    Singapore’s Department of Statistics reported that from 2013 to 2023, the number of households that spent money on tobacco products dropped from 17% to 9%. Those who continued using tobacco saw their monthly spend increase from S$224 to S$255 ($165.76  to $188.70) over the same period, with higher costs largely attributed to repeated excise tax hikes. Officials said lower-income households remain disproportionately impacted, with tobacco accounting for about 5% of monthly expenditures for the lowest income group, compared to 2.3% for the highest.