Category: News This Week

  • Brazil Ag Minister Asked for Support Prior to COP

    Brazil Ag Minister Asked for Support Prior to COP

    Photo: Taco Tuinstra

    Tobacco supply chain representatives met with the Brazilian minister of agriculture, Carlos Favaro, on July 12, to ask his support ahead of the upcoming 10th Conference of the Parties (COP10) to the World Health Organization’s Framework Convention on Tobacco Control (FCTC).

    “Brazil is the top exporter of tobacco worldwide and has occupied this position for 30 years now and is the second largest producer,” said Iro Schunke, president of the Interstate Tobacco Industry Union (SindiTabaco), in a statement.

    “For this leadership role, Brazil should be a protagonist in defending a crop that contributes decisively to the socioeconomic progress of several cities, especially in the south region of the country. Historically, the Ministry of Agriculture has been an ally of the productive sector within this context because it has a good grasp of the impacts of the directives coming from the FCTC could have on the thousands of people who derive their livelihood from this crop, which is processed and exported. This is the stance we again expect from the ministry.”

    Brazil should be a protagonist in defending a crop that contributes decisively to the socioeconomic progress.

    Iro Schunke, president, SindiTabaco

    The meeting was also attended by Benicio Albano Werner, the president of the Tobacco Growers’ Association of Brazil (Afubra); Giuseppe Lobo, executive director of the Brazilian Tobacco Industry Association (Abifumo); Guido Hoff, executive director of the Association of the Tobacco Growing Municipalities (AmproTabaco); Carlos Joel da Silva, president of FETAG-RS; Romeu Schneider, president of the Tobacco Sectoral Chamber; and Helena Hermany, mayor of Santa Cruz do Sul. 

    COP10 is scheduled to take place in November in Panama.

  • Duty Free Retailers Sign Anti-Illicit Trade Doc

    Duty Free Retailers Sign Anti-Illicit Trade Doc

    Photo: Heorshe

    The Duty Free World Council (DFWC) and Tax Free World Association (TFWA), the representative organizations for the global duty- and tax-free industry, have welcomed the first cohort of duty- and tax-free retailers signing a new zero-tolerance declaration on illicit trade, counterfeiting and intellectual property theft. The declaration has been created as the next step of the Duty Free: Trusted, Transparent, Secure campaign, which was previously jointly launched by DFWC and TFWA in June 2022.

    Duty- and tax-free retailers, ARI, Dubai Duty Free, Dufry, Gebr. Heinemann, Lagardère Travel Retail, and Qatar Duty Free are the first to sign this initiative, with more retailers expected to join in the near future.

    The initial signatories of this initiative collectively account for approximately $25 billion of travel retail sales (2019) and rank amongst the largest and most successful duty- and tax-free retailers in the world.

    A significant number of major brand owners have also made clear their willingness to make the same commitment, and a separate announcement on brand owner support will be made in the near future.

    By signing this declaration, retailers commit to a zero-tolerance approach to illicit trade within their own organization. They are also requesting their suppliers follow suit with a clear anti illicit trade policy. This builds on the commitments already made by a number of duty- and tax-free retailers through the UN Global Compact.

    This commitment will be a key tool to demonstrate a united front and will further demonstrate that the duty- and tax-free industry is in no way associated with the growing problem of illicit goods fraudulently labelled as duty-free.

    Marking the launch of the declaration DFWC President, Sarah Branquinho, thanked the initial signatories for their strong support and encouraged others to follow their example.

    “There is no place in our industry for companies that engage in illicit trade,” she said in a statement. “Illicit trade in all its forms causes substantial societal harm, and costs our industry significant lost sales opportunities. It can also cause our industry reputational harm when illicit or counterfeit goods are fraudulently mislabeled as ‘duty-free’ in an attempt to lend authenticity to the product. Ultimately, consumers should be aware that when they purchase goods labelled as duty-free outside of a licensed duty-free retailer, it is very likely to be a counterfeit product.

    “Our industry already boasts one of the most transparent, trusted and secure supply chains in the world. We are proud of our industry’s credentials and commit to maintaining these high standards.

    “Today, some of the major players in our industry are making clear their ongoing stance against illicit trade and will be encouraging their suppliers to follow suit. There can be no room for doubt—the duty- and tax-free industry has zero tolerance for illicit trade in all its forms. We want to send a clear message worldwide – when you shop in a duty-free shop, you can do so with complete confidence!

    “Our announcement today builds upon the decades of trust that we have built up with our customers, governments, customs authorities, and industry partners. DFWC, TFWA and the initial signatories are keen to grow the momentum behind this initiative and are confident the industry will be fully behind it.”

  • Growers Welcome New Buyer on Market

    Growers Welcome New Buyer on Market

    Tobacco growers in Malawi have welcomed the debut of a new tobacco purchaser, Nyasa Tobacco Buying Co. (NTBC).

    According to a report in the Nyasa Times, NTBC paid $3.06 per kg for burley tobacco at the Lilongwe Auction Floors on July 10.

    Tobacco is Malawi’s largest agricultural export, earning the country much-needed foreign currency. Growers, however, have not always been satisfied with the prices offered for their leaf.

    Tobacco Commission President Joseph Malunga recently assured the country that his organization would bring in more buyers to promote competition.

    Tobacco Reporter recently published a special report about efforts to diversify Malawi’s economy and develop supplemental value chains to reduce the country’s reliance on the golden leaf.  

  • FDA Grant to Study Effects of Flavors

    FDA Grant to Study Effects of Flavors

    Image: Tobacco Reporter archive

    The U.S. Food and Drug Administration has given the Center for Tobacco Research at The Ohio State University Comprehensive Cancer Center a $3.9 million grant to evaluate the effects of e-cigarette flavors on smoking behaviors of current adult smokers, according to News Medical Lifesciences.

    The study will be co-led by Theodore Wagener, director of Ohio State’s Center for Tobacco Research, and Tracy Smith from the Medical University of South Carolina Hollings Cancer Center.

    Wagener says, “the FDA must decide how to balance its goals of protecting young people and offering harm-reduction options to adults. This new trial will generate critical data to help make more informed public health decisions that have a lasting impact.”

    “The FDA is currently making regulatory decisions about e-cigarette flavors with incomplete scientific data,” Wagener said. “Existing data show that smokers also prefer flavored e-cigarettes, and while there are a few survey studies suggesting that flavored e-cigarettes may be more helpful for switching to vaping, these studies are not rigorous enough for the FDA to base its regulatory decisions on. Our study will be the first to provide the FDA with definitive information as to the benefit, if any, of e-cigarette flavors to adult smokers.”

    The national, randomized, controlled trial will recruit up to 1,500 cigarette users from across the country, and researchers will measure e-cigarette flavor impact on product uptake and appeal, cigarette craving, symptoms, dependence and smoking behavior. Combination nicotine-replacement therapy will be used as a comparator to determine potential increased benefit of e-cigarettes versus nicotine-replacement therapy.

    “If our study demonstrates no significant improvements in switching with flavored e-cigarette use, then the continued sale of these products is likely indefensible; however, if improvements are significant, these findings will provide a critical counterweight to the current FDA regulations and will aid future decision-making,” Wagener said.

  • Microalgae to Reduce Emissions at PM Korea

    Microalgae to Reduce Emissions at PM Korea

    Image: Regina

    Philip Morris International will establish a demonstration facility for carbon capture and utilization technology at its factory in Yangsan, North Gyeongsang Province, South Korea, according to the Korea Environment Corp. (KECO), reports Korea Bizwire.

    The facility will leverage the carbon dioxide absorption of microalgae, which is expected to reduce the factory’s annual carbon emissions by 2.15 tons.

    The facility will operate solely on solar power and utilize wastewater as well as repurpose the microalgae as fertilizer or feed after use, providing the repurposed products free of charge to local communities.

    The site and funding were provided by the South Korean arm of PMI, coordinated by KECO, and research and development support were provided by the Korea Environment and Merchandise Testing Institute.

  • Hong Kong Solicits Feedback on Anti-Smoking Measures

    Hong Kong Solicits Feedback on Anti-Smoking Measures

    Image: Tobacco Reporter archive

    Hong Kong health authorities have asked city residents for feedback on several anti-smoking measures, including a generational tobacco ban, reports the South China Morning Post.

    The public consultation, which began July 12 and is expected to end Sept. 30, covers four strategies: regulating supply and suppressing demand; banning promotion and reducing attractiveness; expanding nonsmoking areas and mitigating harm; and enhancing education and supporting those quitting smoking, according to Health Minister Lo Chung-mau.

    “To protect our next generation from the harms of tobacco and to ensure the sustainability of our healthcare system, we need to draft strategies that keep up with the times,” Lo told a press briefing. “As a doctor, I don’t want our next generation to suffer from the harms of smoking and secondhand smoke.”

    There were 17 possible measures included in the questionnaire for the consultation, including whether Hong Kong should “prohibit the sale of tobacco products to persons born after a certain date.”

    Other questions include whether increasing the tobacco tax to 75 percent of the package price should be done rapidly or gradually every year and if a further ban on possessing e-cigarettes and heated-tobacco products is necessary. A ban on importing, promoting, manufacturing and selling e-cigarettes and heated-tobacco products was implemented last year.

    In its consultation, the government excluded more aggressive measures, such as requiring shops to get a license to sell tobacco, penalizing third parties who give or sell cigarettes to under-18s, labeling tobacco products imported legally and requiring smokers to use a government app to show their ages when buying goods to verify their eligibility.

  • VLN Selling Briskly in Montana

    VLN Selling Briskly in Montana

    Image: Tobacco Reporter archive

    22nd Century Group’s VLN reduced-nicotine content cigarettes are selling robustly in more than 80 Town Pump convenience stores across the U.S. state of Montana, the company announced in a press note.

    “Launching VLN statewide with Town Pump, the No. 1 c-store in the state, is a big win for adult smokers in Montana seeking an effective solution to break the chains of nicotine addiction,” stated John Miller, president of tobacco products for 22nd Century Group.

    “We continue to see a pattern where, once available in stores, strong interest from adult smokers looking for new solutions to cut their smoking habit fuels initial trial and then often adoption and repeat purchase of VLN. We are excited VLN will be available in dedicated partners such as Town Pump stores given their reputation for providing customers with excellence.”

    “We continue to expand the availability of VLN to a growing audience of adult smokers proactively seeking this innovative new product,” said James Mish, CEO of 22nd Century Group. “We expect to increase store counts in key markets and new states throughout the rest of 2023 and into 2024 based on the launch timelines being communicated to us by a growing list of retail chains across multiple categories where cigarettes are sold.”

  • Jason Carignan Joins Chemular

    Jason Carignan Joins Chemular

    Jason Carignan has joined Chemular, an FDA regulatory consultancy group, as its chief commercial officer.

    Carignan will lead the company’s revenue generation initiatives, strategic partnerships, and intellectual property monetization strategies across its diverse portfolio of business units, according to a press release.

    “Carignan brings a wealth of experience and expertise to Chemular, having held various leadership positions in the tobacco and nicotine industry. He most recently served as president of Phillips & King and the Total Product Expo (TPE), both part of the Kretek International Inc. family of companies,” the release states. “Prior to that, he served as president of DRYFT Sciences, overseeing the successful development of the DRYFT line of nicotine pouches before selling the company to British American Tobacco in late-2020.”

    With an impressive track record of driving growth and creating strategic alliances, Carignan is well-positioned to play a pivotal role in expanding Chemular’s market presence and further establishing the company as a leader in FDA regulatory matters.

    Kevin Burd, CEO of Chemular. said he is thrilled to welcome Carignan to the Chemular team. “His deep industry knowledge and proven leadership in revenue generation and partnership strategies will be instrumental in driving our growth and expanding our client base,” said Burd. “We believe Jason’s appointment will advance our mission of providing comprehensive regulatory solutions to our clients and partners.”

    Carignan will work closely with Chemular’s executive team to develop and execute business development strategies, identify new revenue opportunities, and forge strategic partnerships that enhance the company’s market position, according to the release.

    Carignan said he was excited to join the Chemular team.

    “Chemular has established itself as a trusted and innovative partner for clients navigating the complex landscape of FDA regulations,” Carignan said. “I look forward to leveraging my experience and expertise to drive revenue growth, establish impactful partnerships, and contribute to Chemular’s continued success.”

  • Korean Ministry Urges Vape Show Canceled

    Korean Ministry Urges Vape Show Canceled

    Photo: Taco Tuinstra

    South Korea’s Ministry of Health and Welfare (MOHW) has urged events organizer The Fairs to cancel its Korea Vape Show 2023, reports Korea Biomedical Review.

    The exhibition is scheduled to take place July 21-23 in Goyang, Gyeonggi Province.

    “We sent a letter asking for the event to be canceled because we had concerns from a health promotion perspective,” a MOHW official was quoted by Yonhap News as saying. “We are also concerned that adolescents may visit the show if access to the convention is not properly controlled.”

    The ministry also expressed worries about advertised vaping contests that it said would violate indoor smoking restrictions. South Korea allows indoor smoking only in separate, fully enclosed areas.

    The MOHW said it plans to inspect the venue on the day of the event and impose penalties if the organizers fail to create a fully enclosed smoking room inside the venue.

    The organizers said they had submitted plans to resolve the issues raised by critics and said it would not cancel the convention.

    The official also stressed that previous conventions had been held without problems. “During the past three conventions, officials from the local public health center visited the convention and found no wrongdoings,” she said. 

  • Black Market for Tobacco Doubles

    Black Market for Tobacco Doubles

    Credit: Zero Photo

    The illicit cigarette trade in Kenya has more than doubled in three years, according to BAT Kenya, reports Business Daily. The company says illegal sales accounted for 25.5 percent of the market last year compared to 11.3 percent previously.

    BAT Kenya says the increase is due to increased taxes, according to a third-party survey.

    “This [shrinkage of legitimate market] has been further exacerbated by the resultant differentials in excise rates between Kenya and its neighboring EAC (East African Community) partner states, with the excise payable in Kenya being double that of Uganda and almost triple that of Tanzania,” BAT Kenya wrote in its annual report for the year ended December.

    “To address this dire situation, we continue to call upon the government to enhance local deployment of resources and enforcement as well as collaboration with neighboring governments against the illicit trade in tobacco products.

    “Effectively, in 2022 alone, excise duty has increased by 21.3 percent and cumulatively by over 50 percent since July 2019. Such an increase, which is ahead of the average inflation rate for the year, presents an unstable and unpredictable business environment,” BAT wrote in the report.

    “This has forced consumers to seek cheaper products in the illegal market.”