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Category: News This Week

  • Cigar Associations Team to Commission Study on Tax Cap Policies

    Cigar Associations Team to Commission Study on Tax Cap Policies

    Today (June 10), the Premium Cigar Association (PCA) and the Cigar Association of America (CAA) announced they are collaborating on a national study of cigar tax cap policies enacted and planned throughout the nation. The PCA and CAA have commissioned Goss & Associates, led by Dr. Ernie Goss, who serves as chair in regional economics at Creighton University, to undertake the study. Goss has published more than 100 studies on economic forecasting and on statistical analysis of business and economic trends.

    “This is a first-of-its-kind study that should produce a historic perspective on cigar tax policy, coupled with an analysis that charts a path forward in the states,” PCA executive director Joshua Habursky said. “Having a study produced by an economist of Dr. Goss’s acclaim is a testament to how serious PCA and CAA are on this pressing issue as we initiate this project.” 

    The study will evaluate the effectiveness of cigar tax caps as a matter of state policy and the direct and indirect economic impact of premium cigars for each state, including local, state, and federal taxes.

    “Since 1977, the CAA economic and statistics program has provided actionable insights to support industry advocacy,” CAA president Scott Pearce said. “Currently, we find ourselves having to defend existing tax caps, as well as working to advance new cap bills, in addition to addressing reform of statutes in some states.  And in this regard, research and substantiated data are the number one requests of state legislatures. CAA is excited to be partnering with PCA to further progress our advocacy with this new study.” 

    The study results are expected to be released in 2025.

  • CEA Industries Acquires Fat Panda to Enter Canadian Vape Market

    CEA Industries Acquires Fat Panda to Enter Canadian Vape Market

    CEA Industries Inc. has completed its CAD $18 million ($12.6 million) acquisition of Fat Panda Ltd., Canada’s largest independent vape retailer and manufacturer. The deal provides CEA with a profitable foothold in the regulated nicotine market, with Fat Panda generating nearly CAD $38.5 million ($28.1 million) in annual revenue and holding more than 50% market share in central Canada.

    “This acquisition marks a significant milestone for CEA as we expand into a dynamic, high-growth regulated vertical benefiting from strong consumer demand,” said Tony McDonald, Chairman and CEO of CEA Industries. “Fat Panda brings an established brand, experienced leadership, and a highly profitable operating model that can be rapidly scaled with our capital and strategic support. Importantly, this acquisition exemplifies our commitment to identifying accretive opportunities that can unlock meaningful long-term value for our shareholders.”

    Fat Panda will retain its leadership and branding during the integration.

  • General Files Latest Appeal in Ongoing Cohiba Case

    General Files Latest Appeal in Ongoing Cohiba Case

    General Cigar Co. filed a notice of appeal in General Cigar Company, Inc. v. Empresa Cubana del Tabaco, D.B.A. Cubatabaco, last week, a lawsuit over the trademark of the Cohiba name in the U.S. that began in 1997. The May decision by Judge Leonie Brinkema would allow the TTAB to cancel General’s U.S. Cohiba trademarks, according to Halfwheel.

    “We are of course disappointed by this decision, but we and our advisors will now study the ruling closely and of course consider the opportunity to appeal to the US Court of Appeals for the Fourth Circuit,” said Régis Broersma, chief commercial officer of STG, owner of General Cigar Co., in a press release following last month’s ruling. “Our federal trademark registrations which are the subject of the dispute, would remain valid and enforceable during a pending appeal. We expect the long dispute to continue before the courts.”

    Broersma indicated General would file an appeal, which it now has. The appeal is listed as a restricted entry in the U.S. Court of Appeals for the Fourth Circuit’s electronic filing system. No product changes for either company are expected anytime soon.

  • Riot Labs Introduces Five Limited-Edition Flavors

    Riot Labs Introduces Five Limited-Edition Flavors

    E-liquid producer Riot Labs unveiled five limited-edition flavors for its premium Bar EDTN e-liquid range. Joining the 40-strong range of premium Bar EDTN e-liquids, the limited-edition flavors are Black Grape Glacier, Pink Razz Citrus, Blueberry Acai Cooler, Apple Lime Chill, and Strawberry Melon Cooler. The new flavors also contain a hint of mint.

    “We spent all our budget on creating the best flavors imaginable for the limited edition range, leaving us nothing leftover for the marketing budget,” said Andy Dunn, marketing manager for Riot Labs. “So, excuse the unfinished ads, we’ll let the flavors do the talking!” 

    All flavors are available in four nicotine strengths including 0mg, 5mg, 10mg and 20mg, from a starting price of £3.99.

  • Delaware Looks to Jack Taxes on Nicotine Products Across the Board

    Delaware Looks to Jack Taxes on Nicotine Products Across the Board

    With less than a month left in this year’s half of the two-year General Assembly, new legislation was filed in Delaware’s House that would raise taxes on tobacco and nicotine products and implement higher fees for licensed tobacco sellers and vending machine operators. Delaware’s cigarette tax is currently $2.10. The proposal would increase it to $3.60 per pack.

    The sponsors said they hope this will discourage people—especially the young—from using tobacco, and that the extra revenue would help address the half-billion-dollar estimated cost of treating tobacco-related health issues in The First State each year.

    The legislation also would update the definition of tobacco products to “include any products containing, made of, or derived from tobacco or nicotine, rather than only those made primarily from tobacco.”

    In addition to raising the tax on a pack of cigarettes by $1.50, this bill would raise the tax on other tobacco products from 30% to 45% of the wholesale price, increase the moist snuff tax from $0.92 to $1.23 per ounce, expand the vapor product tax from $0.05 to $0.25 per milliliter, increase fees for wholesalers and affixing agents from $200 to $400, increase fees for retailers from $50 to $100, increase vending machine fees from $15 to $30 per machine, and increase the replacement fee for lost or defaced licenses from $10 to $20.

    If the bill passes, the new tax rates would take effect September 1st, while the licensing changes would take effect January 1st, 2026.

  • Australia’s Anti-Smoking Push Fuels Crime, Fails to Curb Smoking 

    Australia’s Anti-Smoking Push Fuels Crime, Fails to Curb Smoking 

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) condemned Australia’s tobacco control strategy as a “public health failure” that prioritizes ideology over evidence, fueling a A$6.3 billion ($4.1 billion)  illicit tobacco market while adult smoking rates remain stagnant. New data reveals one in four cigarettes consumed in Australia originates from the black market — CAPHRA says that is a direct consequence of the world’s highest tobacco taxes and restrictive vaping policies.  

    CAPHRA argues this crisis exposes a fatal flaw in Australia’s approach: prohibition without offering safer alternatives drives consumers to criminal networks rather than reducing harm. 

    “Australia’s tobacco policy doesn’t pass the pub test,” said Nancy Loucas, CAPHRA’s executive coordinator. “Sky-high cigarette prices haven’t made people quit—they’ve made criminals rich.

    “The government’s own figures show smoking rates flatlined at 11% since 2019 despite taxing a pack to A$50 ($32.50). Meanwhile, organized crime syndicates pocket A$2.3 billion ($1.5 billion) annually in evaded excise, funding drug trafficking and violent turf wars.” 

    CAPHRA’s data said Australia’s illicit tobacco trade has surged by 46% since 2020, with over 800,000 smuggled cigarettes intercepted monthly at airports. Criminal syndicates increasingly exploit international travelers, while fire bombings of non-compliant retailers exceed 220 incidents since 2023. 

    “This isn’t just about lost tax revenue—it’s about community safety,” Loucas said. “Melbourne’s ‘tobacco war’ has seen shops torched and innocent bystanders endangered. The government transformed a health issue into a national security crisis by ignoring basic economics: punitive taxes without alternatives breed black markets.” 

  • Kenya: Illicit Cigarettes Jump to 37% of the Market 

    Kenya: Illicit Cigarettes Jump to 37% of the Market 

    Kenya is losing more than Sh9 billion ($69 million) annually in potential revenue (taxes and levies) to the illicit cigarette trade, a new report now indicates, with almost all of these products being smuggled into the country. The newly released findings from a study conducted by international research company Kantar indicate that the illicit cigarette trade in Kenya has soared to a record high, with more than one in three cigarettes sold in the market not paying taxes.

    BAT Kenya is calling for urgent action by the authorities to tackle and mitigate the profound implications of illicit trade in cigarettes, and said “this alarming situation calls for drastic, multipronged action to seal the loopholes and protect legitimate business in Kenya.”

    “This alarming rise in illegal cigarette trade is not only depriving the Kenyan government of vital revenue needed for the country’s economic stability, but is also undermining the security and livelihoods of thousands of Kenyans in our value chain,” BAT Kenya managing director Crispin Achola said. “The illicit trade in cigarettes is not only an economic issue, it is a matter of national security and public interest.”

    Last year, the value of smuggled and counterfeit goods seized at Kenya’s entry points, reached Sh243. 5 million ($1.9 million), according to Kenya Revenue Authority (KRA), up from Sh200 million ($1.5 million) the previous year. Reports also suggest illicit cigarettes jumped from occupying 27% of the market to 37% in just one year.  

  • Zimbabwe’s Stalk Destruction Reprieve Expires

    Zimbabwe’s Stalk Destruction Reprieve Expires

    To protect next year’s tobacco crop from pests and disease, Zimbabwe’s Department of Research and Specialist Services (DR&SS) said it will be cracking down on farmers who still haven’t destroyed the stalks and roots from this year’s crop. Because of the late start to the season, the department gave farmers a three-week reprieve that ended June 5.

    “In the event of non-compliance, some fines [$100 per hectare) are imposed as per regulations,” said Dr. Dumisani Kutywayo, chief director  of the DR&SS. “A second or subsequent conviction will attract a fine not exceeding $200 for each hectare or part thereof in respect of which the offense is committed, or imprisonment for a period not exceeding two years or both fine and imprisonment.”

    The director said all growers were required to adhere to all other dates to prevent the carryover of pests and diseases, however, those who are not able to meet this stipulated deadline are requested to apply for an extension to keep their tobacco in the fields.

    Figures from Zimbabwe’s National Statistics Agency show that tobacco export earnings rose from US$1.3 billion in 2023 to US$1.43 billion last year, with 2025 expected to be even better.

  • Op-Ed: SHORT-SIGHTED AND INEFFECTIVE – VAPE BANS ARE NOT THE ANSWER

    Op-Ed: SHORT-SIGHTED AND INEFFECTIVE – VAPE BANS ARE NOT THE ANSWER

    By Dato Adzwan Abdul Manas, President, Malaysia Retail Electronic Cigarette Association (MRECA)

    Across Malaysia, we’re witnessing a growing wave of state-led attempts to ban vape products, with Perlis, Terengganu, and Kedah – all governed by opposition parties – announcing prohibitions, with Penang, Selangor and Negeri Sembilan reportedly considering the same.

    Publicly, leaders and MPs are now echoing calls for a nationwide ban, citing concerns over vape products laced with drugs and growing concern over youth vaping.

    Let us be clear: these concerns are real, but the proposed solutions are dangerously flawed.

    The reason we are seeing issues like underage use and contaminated products is not because of the legal vape industry. It is because irresponsible, illegal retailers and criminal syndicates continue to operate without fear of consequences. These bad actors have no regard for regulations, age restrictions, or product safety. They are the ones supplying unregistered products, selling to minors, and introducing dangerous substances into the supply chain.

    Banning vape will not stop these criminals. It will only penalise legitimate, regulated businesses, whilst empowering the black market.

    The leaders now calling for a ban are reacting to the harm caused by illegal and unregulated players. But instead of focusing efforts on enforcement to eliminate these elements, they propose a blanket ban that would wipe out responsible retailers, many of whom are registered and comply with all current regulations.

    If we take the easy way out and ban vape outright, we risk creating an entirely unregulated underground market. Everything will be black market. No age checks, no quality control, no accountability. This is the worst possible outcome for public health.

    We must remember that the Control of Smoking Products for Public Health Act 2024 (Act 852), has now been introduced. This is the very tool meant to bring vape into a regulated space, to ensure product safety, protect youth, and allow only legal players to operate. Why are we not concentrating our energy on implementing this law effectively, with robust enforcement to weed out the bad actors?

    According to Global Adult Tobacco Survey (GATS) Malaysia 2023 survey by the Institute for Public Health under the Ministry of Health, the majority of vape users are aged 15 to 24 years. These numbers did not emerge under a regulated environment. They grew due the absence of a clear regulatory framework. This proves that prohibition does not work. What works is regulations, oversight, and the political will to enforce the law.

    MRECA fully supports regulations. We support clear rules that keep products out of the hands of minors and ensure safety for adult consumers. But we cannot support a system where the actions of criminal syndicates are used to justify blanket bans that harm legitimate businesses.

    With Act 852 already in place, the focus must be on moving forward: implementing it with urgency, investing in enforcement, and strengthening the regulatory framework so that only responsible, compliant players remain in the market.

    Banning regulated products is not a solution, it is an abdication of responsibility that hands the market over to criminals. If we want to protect public health and consumer safety, we must stay the course, enforce the law decisively, and commit to building a legal, transparent vape industry that operates within clear and accountable boundaries.

  • FDA Updates Tobacco Application Forms; Effective Immediately

    FDA Updates Tobacco Application Forms; Effective Immediately

    Today (June 6), the FDA posted six updated or new forms that are required for submitting new tobacco product applications under the premarket tobacco product application (PMTA) and Substantial Equivalence (SE) pathways. Starting July 6, 2025, applicants must use these forms in their PMTA and SE Report submissions. If applicants do not use the latest version of the forms or do not complete them properly, FDA generally intends to refuse to accept the application.

    The updated forms reflect public comments and are part of FDA’s work to promote efficiency, effectiveness, and transparency to improve its tobacco product application review process. The latest versions of the forms offer new instructions and additional details on the information applicants are required to include. Ultimately, these forms can help applicants submit higher-quality applications to facilitate FDA’s review.

    A list of the updated forms is below. Use of old versions of the forms will no longer be accepted after the 30-day notice period.

    Updated PMTA forms:

    • Form FDA 4057 – Premarket Tobacco Product Application (PMTA) Submission
    • Form FDA 4057a – Premarket Tobacco Product Application Amendment and General Correspondence Submission
    • Form FDA 4057b – PMTA Unique Identifying Information for New Tobacco Products (formerly referred to as a grouping spreadsheet)

    Updated or new SE forms: 

    • Form FDA 3965 – Tobacco Substantial Equivalence Report Submission
    • Form FDA 3965a – Tobacco Substantial Equivalence Report Amendment and General Correspondence Submission (formerly Form FDA 3964)
    • Form FDA 3965b (NEW) – SE Unique Identifying Information for New Tobacco Products

    To assist applicants’ proper use of Form FDA 4057b and Form FDA 3965b, FDA is releasing version 2.0 of its Product Form Validator Tool. Applicants may use the tool for both forms to validate the data and confirm if a completed form is consistent with FDA ingestion requirements before submission.

    If applicants have questions about the forms, they can email AskCTP@fda.hhs.gov or call 1-877-287-1373 between 9 a.m. and 4 p.m. EST. Additionally, applicants can explore FDA’s PMTA tips.