Category: News This Week

22nd Century Signs New Distribution Agreement

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22nd Century Group has entered into a new distribution agreement with Hub, a key Midwest-based convenience store and multi-channel distributor with warehouses located in Missouri and Kansas.
22nd Century’s VLN products are now available for purchase by eligible Hub customers as a part of 22nd Century Group’s state and regional rollout program.
“Hub is a critical conduit to a growing list of regional, independent and tribal retail outlets in the Midwest and a highly regarded wholesale tobacco products distributor with more than 60 years in its served markets,” stated John Miller, president of tobacco products for 22nd Century Group, in a statement.
“By adding distribution to Hub’s extensive customer list, 22nd Century can expand retail points of sale in both existing and new served markets for its innovative VLN reduced-nicotine content cigarettes, the first and only combustible cigarette to secure a modified-risk tobacco product authorization from the U.S. Food and Drug Administration. Our VLN brand contains 95 percent less nicotine than contained in U.S. conventional cigarettes. As demonstrated by leading independent scientists, reducing the nicotine level in cigarettes has the potential to substantially reduce the enormous burden of smoking-related death and disease.”
Hub runs warehouse operations in St. Louis, Missouri; Kansas City, Missouri; and Galena, Kansas, serving as a multi-channel industry-leading cigarette, tobacco and comprehensive distributor of tobacco-related products. Hub is a leading distributor of cigarettes in the Midwest, providing a comprehensive catalog of tobacco and tobacco-related products to more than 2,500 customer locations in Illinois, Kentucky, Iowa, Missouri, Kansas, Oklahoma and Arkansas. Hub customers include regional, independent and tribal accounts across its served market that sell tobacco products.
July 12, 2023
Broughton Adds Extractables and Leachables

Photo courtesy of Broughton
Broughton has launched a new extractables and leachables (E&L) testing service for the reduced-risk nicotine industry. The new service will offer tailored E&L studies for products aimed at the premarket tobacco product application (PMTA) and the marketing authorization application (MAA) pathways.
According to Broughton, regulatory bodies increasingly focus on the interactions between manufacturing components, nicotine delivery devices and container-closure systems, and the final product formulation. Producers must identify and assess any toxicological risks that could arise via such interactions via E&L studies.
Aimed at supporting reduced-risk nicotine product categories such as electronic nicotine delivery systems, Modern Oral nicotine pouches and nicotine replacement therapy, the service is available across all stages of the product development lifecycle.
The new testing service includes study design, extractables studies, extractables toxicology assessments, leachables method development and validation, leachables shelf-life studies and leachable toxicology evaluation.
“Extractable and leachable studies are essential to the PMTA and MAA regulatory pathways for reduced-risk nicotine products to ensure their safety and demonstrate evidence of mitigating risk. Even in emerging categories, where regulations may not exist, such as nicotine pouches, they should be adopted as a best practice approach to product understanding and stewardship,” said Chris Allen, CEO of Broughton.
“Our scientific experts and toxicologists have years of combined experience conducting E&L studies across a range of reduced-risk nicotine product and device categories. By offering a one-stop solution for E&L studies, we can ensure a fully integrated approach across study design, extractables study delivery, leachables method development and toxicology assessment with our specialized consultants available to troubleshoot, problem-solve and develop analytical solutions to issues that may arise.”
July 11, 2023
Albert Heijn to Stop Selling Tobacco

Image: Martin Bergsma | Adobe Stock
Netherlands’ supermarket chain Albert Heijn will no longer sell cigarettes and other tobacco products beginning Jan. 1, 2024, according to NL Times.
“Albert Heijn supports the movement toward a smoke-free generation,” the company wrote in a press release. “In order to achieve lasting behavioral change and a smoke-free generation, it is important that all selling parties and other players involved, large and small, work together on this. The Dutch government has announced that tobacco sales will stop at supermarkets as of July 1, 2024, and is preparing legislation for this. Albert Heijn will stop selling tobacco and related products in stores as of Jan. 1, 2024. Online sales have stopped since July 1, 2023.”
Last year, supermarkets were ordered to stop publicly displaying tobacco products. Kruidvat stopped selling cigarettes in 2018 followed by Lidl later that year.
July 11, 2023
Industry Concerns Over Romanian Tax Plans

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Romania’s finance ministry plans to increase excise duties on tobacco and nicotine products this year in addition to the excise calendar that has already been approved, causing tobacco firms concern, according to The Romania Insider.
“The moderate five-year timetable for increasing excise duty adopted less than 12 months ago should have provided the fiscal predictability needed to combat illicit trafficking,” said Jorge Araya, director of the southeast Europe area for BAT. “It should not be forgotten that illicit trafficking also means decreasing revenues to the state budget, financing criminal networks and uncontrolled access to products that do not meet quality or hygiene standards.”
Excise duty was previously increased in April of this year. Excise duties and cigarette prices in Romania are the highest in the European Union in relation to purchasing power.
Araya argues that the tax increases make smuggling very profitable because cigarettes can be bought in neighboring countries at around half the price of those in Romania.
July 11, 2023
Tobacco Farmers Urged to Destroy Stalks

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Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) is urging tobacco growers who have not destroyed tobacco plant stalks to immediately destroy them to avoid carrying diseases and pests to the next crop, reports The Chronicle.
The TIMB stated that according to the Plant Pests and Disease Act, tobacco stalks must be destroyed by May 15 every year. Failure to comply with regulations brings penalties, including contract suspension and monetary fines or imprisonment.
“Against this backdrop, tobacco growers are being reminded that all tobacco stalks should have been destroyed by now. Those who have not destroyed stalks are reminded to destroy their stalks immediately to avoid carrying over diseases and pests to the next crop,” the TIMB stated.
“As we destroy tobacco stalks, we are also reminded to observe the set tobacco legislative date of Sept. 1, the earliest date to transplant tobacco. Planting tobacco before this set date will attract penalties and sanctions.
“If 10 percent of the contracted farmers are noncompliant, the responsible contractor will be penalized or suspended from operations until they comply fully. Therefore, no contractor will contract a farmer who has not destroyed their tobacco stalks. Any grower who has not destroyed tobacco stalks and has been contracted shall be de-contracted from that contract scheme. Please note that TIMB and Ministry of Lands officers are inspecting all fields and compiling lists of all noncompliant farmers.”
A farmer’s first offense will incur a fine of $100 or the local currency equivalent for each hectare or part thereof in respect of which the offense is committed, imprisonment of up to a year or both a fine and imprisonment. A second or subsequent offense will incur a fine up to $200 or the local currency equivalent for each hectare or part thereof in respect of which the offense is committed, imprisonment of up to two years or both a fine and imprisonment.
So far, Zimbabwe has sold over 280 million kg of tobacco. “Given that production has increased, let us take all the precautions to sustain the production and ensure we reach the target of 300 million kg by 2025,” the TIMB said.
Production is expected to increase by 8.5 percent year-on-year. Earlier this month, press reports suggested Zimbabwe would achieve its 300 million kg target ahead of schedule.
July 11, 2023
Germany to Ban Flavored Products

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The German Bundesrat approved a third amendment to the Tobacco Products Act, which would ban flavored heated-tobacco products, according to Dokumentations und Informationssytem fur Parlamentsmaterialien.
The amendment includes “alignment of EU rules banning flavorings and distinctive flavors in heated-tobacco products; definition of the heated-tobacco product and its classification as a smoking tobacco product or smokeless tobacco product, extended labeling requirements in the form of combined text and image warnings and an information message, extension of the ban on placing cigarettes and roll-your-own tobacco with a characteristic flavor on heated-tobacco products; [and] amendment of various sections of the Tobacco Products Act,” according to the German Bundestag website.
July 11, 2023
Distributors Accused of Racketeering

Credit: Vitalii Vodolazskyi
New York City has filed a lawsuit in federal court charging four vaping product distributors and six persons associated with the companies for illegally selling flavored vaping products other than tobacco in the city. It is possible more companies will be added to the suit.
The civil lawsuit, filed Monday in the U.S. District Court for the Southern District of New York, claims the defendants violated “nearly every federal, New York State and New York City law applicable to the marketing, distribution, and sale of flavored e-cigarettes, the sales of which are prohibited under laws enacted by all three jurisdictions.”
Named in the suit are Magellan Technology Inc., Ecto World LLC (Demand Vape), Mahant Krupa 56 LLC (Empire Vape Distributors) and Star Vape Corp. Also named were Matthew Glauser, Donald Hashagen, Russell Rogers, Nikunj Patel, Devang Koya and Nabil Hassen. The suit also mentions Puff Bar, Elf Bar and Hyde products, however, those manufacturers were not named in the suit.
The lawsuit alleges the defendants committed mail and wire fraud, alongside violations of New York City’s Administrative Code, New York State Public Health Law, and the federal Tobacco Control Act. The city also accuses the companies of violating both the federal Racketeering Influenced Corrupt Organizations (RICO) Act and the Prevent All Cigarette Trafficking (PACT) Act.
The suit centers on disposable flavored vapes. However, the suit alleges that is seeking relief for any type of flavored e-cigarette product on the market. This would suggest the suit could grow into anyone entity that has sold flavored vaping products in the city.
“Although this action speaks principally about (flavored disposables), the favorite type of electronic nicotine delivery system among youth and the most intentionally directed to that market, the City seeks relief for defendants’ violation of laws applicable to e-cigarettes regardless of the type of device with which the violation is committed,” the suit states. “Any non-FDA approved [the FDA authorizes for marketing; it does not approve products] e-cigarette containing a flavored e-liquid is governed by the laws under which the City’s claims are brought and the City seeks relief with respect to all such devices.”
The city says it “seeks to recover monetary damages and civil penalties from the defendants, potentially totaling millions,” according to a press release. The suit also alleges the sales of disposable flavored vapes created a youth use crisis. The suit alleges the largest increase in youth use ever. The claim is unsupported by any facts.
“By distributing devices that provide larger than normal doses of nicotine in a mild aerosol formulated to reduce or eliminate the harshness of burning tobacco and tasting pleasantly of fruit, candy or desserts, [flavored vaping device] manufacturers and distributors have triggered the largest increases in youth nicotine use ever seen,” the suit claims.
The lawsuit states the city will seek triple the damages awarded at trial under the RICO guidelines.
July 11, 2023
Expand Flavor Ban to Reduce Youth Vaping

Photo: Atlas
Youth vaping would decline significantly if the U.S. Food and Drug Administration expanded its flavor ban to disposable e-cigarettes, according to a new study from the Center for Tobacco Research at The Ohio State University Comprehensive Cancer Center. The FDA’s current flavor ban only applies to cartridge electronic cigarette devices.
Researchers surveyed 1,414 individuals between the ages of 14 and 17 regarding their e-cigarette use and behaviors. This included demographic and self-reported information about the type of device used, usage habits, preferred flavors and intent to discontinue use of the vaping device in response to proposed hypothetical comprehensive flavor ban.
Overall, nearly 39 percent of survey respondents reported they would stop using their e-cigarettes if tobacco and menthol-flavored e-liquids were the only options available, and nearly 71 percent would quit vaping under a tobacco-only product standard.
“Our data add to an expanding body of evidence showing that youth have a preference for sweet flavorings that make vaping easier for novice users of e-cigarette products, priming them for a potential lifetime of dependency to nicotine,” said senior author Alayna Tackett in a statement.
In February 2020, the FDA restricted the use of flavorings in cartridge/pod vape devices, but the ban did not extend to disposable devices or to menthol flavoring for all devices. While sales of e-cigarette cartridge products went down, sales of disposable devices and menthol-flavored pod/cartridge devices went up.
In April 2022, the FDA issued proposed product standards banning menthol flavoring in cigarettes and cigars.
While stressing the importance of preventing vaping among young people, Tackett says that flavor restrictions could also impact adults who use e-cigarettes as a tool to quite smoking.
“Many adults prefer using non-tobacco flavors to switch from combustible cigarettes to e-cigarettes,” said Tackett. “Flavor restriction policies should consider the best ways to protect public health while supporting adults who are interested in choosing potentially less harmful alternatives to combustible cigarettes.”
July 11, 2023
BAT Uganda Impacted by Illicit Trade

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BAT Uganda’s 2022 performance was impacted by the country’s slow economic recovery and growing illicit trade, according to a report in The Independent.
Gross revenue increased by 6 percent to UGX99.5 billion ($27 million) driven by higher sales volumes. However, general inflation rates drove up the cost of production by 15 percent, causing after-tax profits to drop 6 percent.
“Whilst the fundamentals of our business remain solid as evidenced by our sustained investment in the country for 95 years, the increasing incidence of illicit trade in Uganda remains a major threat to the sustainability of our business going forward,” said BAT Uganda Managing Director Mathu Kiunjuri during the company’s annual general meeting on July 6.
The incidence of illicit cigarettes rose from 23.8 percent in December 2021 to 29.4 percent in December 2022, according to industry research.
According to Kiunjuri, the government loses up to UGX30 billion annually to the illicit cigarette trade. Third-party research indicates that most illicit cigarettes are mislabeled as exports or smuggled in from neighboring countries.
Uganda is reportedly also increasingly becoming a source of illicit cigarettes in regional markets such as Kenya.
A recent market study revealed that several BAT Uganda and BAT Kenya brands intended for sale in other countries end up in shops in Uganda.
Despite the challenges, Kiunjuri praised the Uganda Revenue Authority (URA), which he said has made significant progress in fighting the illicit cigarette trade. “However, for meaningful and lasting impact, it is critical that government redoubles its efforts, including ramping up multi-stakeholder and cross-border collaboration to ensure effective enforcement and enhancement of anti-illicit trade regulations,” he said.
According to the URA, cigarette smuggling accounts for up to 27 percent of smuggled goods in Uganda, with the Supermatch brand accounting for more than 90 percent of the seized cigarettes.
July 10, 2023
FDA Denies Marketing of Myblu Menthol

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The U.S. Food and Drug Administration on July 10 issued a marketing denial order (MDO) for Myblu Menthol 2.4 percent, an e-cigarette product made by Fontem US. The order prohibits the company from marketing or distributing this product in the United States.
“Thorough scientific review of tobacco applications is a key pillar under FDA’s role to protect the public from the dangers of tobacco use,” said Matthew Farrelly, director of the Office of Science within the FDA’s Center for Tobacco Products. “This application lacked the scientific evidence needed to demonstrate that the product provided a net benefit to the public health that outweighs the known risks.”
Among other shortcomings, the application presented insufficient scientific evidence to show that the menthol-flavored e-cigarette products provided an added benefit for adults who smoke relative to tobacco-flavored e-cigarettes, according to the FDA.
Fontem US may resubmit a new application to address the deficiencies for the product subject to this MDO.
To date, the FDA has authorized 23 tobacco-flavored e-cigarette products and devices. Last year, the FDA issued MDOs to Fontem US for several other Myblu products, which are the subject of ongoing litigation.
July 10, 2023