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Category: News This Week

  • Foundation Cigar Latest to Up Prices from Tariff

    Foundation Cigar Latest to Up Prices from Tariff

    Foundation Cigar Co. announced it will increase the prices of most of its cigars beginning June 1 due to the Trump Administration’s April tariff announcement. Nicholas Melillo, Foundation’s owner, told Halfwheel that the increases would not apply to the company’s limited edition releases like the Highclere Castle Senetjer, The Tabernacle Knight Commander, or the upcoming Foundation 10 Year Aniversario. Foundation is the fifth major cigar company to make such an announcement, but did not detail the amounts of the increase.

    “At Foundation Cigar Company, we have always prioritized price stability while remaining dedicated to delivering premium cigars rooted in tradition, quality, and craftsmanship,” the company said in a letter to retailers. “Over the past several months, we have worked diligently to absorb a portion of these rising costs to shield our partners from disruption. However, the magnitude of the current tariff structure necessitates a modest adjustment in pricing across select product lines to ensure we can continue upholding the standards you expect from us.”

  • Papua New Guinea Bans Vapes

    Papua New Guinea Bans Vapes

    Papua New Guinea’s Health Department declared an immediate ban on the importing and use of any form of vape products, effective immediately. Health Minister Elias Kapavore announced the ban May 13, saying he was concerned about the effects tobacco products had on people between the ages of 11 and 17 in the country.

    “As of [May 13], I want to say that we are signing off [on] the ban on e-cigarettes and it will be now formally issued though gazettal notice,” Kapavore said. “And once it’s published on the gazette, it will take seven days to get full effect for its full implementation, and any e-cigarette products coming to our country will be deemed illegal under our law.”

    The proposed ban prohibits the sale of e-cigarettes and their components. Those guilty of breaching the ban would face a K10,000 ($2,400) fine as an individual and K100,000 ($24,000) fine for a company. The company fine could be doubled for a “tobacco company.”

  • Imperial’s CEO, Bomhard, Retires

    Imperial’s CEO, Bomhard, Retires

    Imperial Brands announced today (May 14) that CEO Stefan Bomhard will retire after five years in the job. He will continue to serve on the company’s board until December 31 and be available until May 2026 to support the transition. Chief financial officer Lukas Paravicini will be promoted to CEO October 1.

    “While Bomhard’s retirement is disappointing, this doesn’t imply any change to the plans laid out at the company’s recent investor event,” Panmure Liberum analyst Rae Maile wrote. “The transition will be seamless given Paravicini’s skills.”

    Paravicini, CFO since May 2021, has been instrumental in driving consistent growth over the past four years and leads the long-term program to transform the company’s tech and data capabilities, the company said. Chief strategy and development officer, Murray McGowan, will replace Paravicini as CFO.

    With the news, Imperial’s shares dropped more than 7% as investors reacted to the unexpected loss of a leader credited with turning the company around. The company recently reported a 1.8% rise in first-half adjusted operating profit and reaffirmed its annual forecast after reporting market share growth in its five priority markets.

    “Prior to Bomhard’s arrival, Imperial had lost market share in its core tobacco business and failed to gain any real traction with new products like vapes, resulting in years of missed sales targets and a 2020 write-down,” Shashwat Awasthi and Emma Rumney wrote for Reuters. “Bomhard restored that market share, sales growth, and healthy investor returns by retreating to focus on traditional tobacco in Imperial’s key markets.

    “He also fine-tuned the company’s strategy on smoking alternatives – a portfolio which delivered double-digit growth in the first half of this year.”

    Paravicini told investors on an analysts’ call he was committed to Imperial’s five-year strategy set out in March and a capital allocation framework based around healthy returns for shareholders. Under that strategy, Paravicini is tasked with stepping up growth in smoking alternatives, where Imperial lags competitors, and compounding progress on tobacco in difficult markets like Germany, where Imperial has struggled to regain lost share amid stiff competition.

    Bomhard said he did not plan to take any other executive role and was retiring, and that his departure was “a very personal decision” related to freeing up personal time for himself and his family after 11 years leading large UK companies. He was previously CEO of car distributor and held senior roles at Unilever and Bacardi.

  • SKE Unveils Eight New Products Ahead of UK Disposables Ban

    SKE Unveils Eight New Products Ahead of UK Disposables Ban

    With the UK’s impending ban on disposable vapes looming, SKE recently unveiled a portfolio of eight new devices spanning pod systems, refillables, and advanced reusables to retailers, distributors, buyers, and the media.

    “We firmly believe that the regulatory changes within the UK represent an opportunity for innovation and change,” SKE’s UK Regional Director Chris Dong said. “As we launch our new brand look, SKE will keep leading the way — focusing on quality, ethics, and providing the products our customers really need.

    “This is a defining and significant moment for SKE as we introduce a more diverse product lineup which includes refillable pod systems, open systems with replaceable tanks, and vapor-free products, catering for all retail formats and to a wide range of consumers, from entry-level to premium product lines.”

    Upcoming devices in the new lineup will include the SKE BAR, a pre-filled pod system; the SKE 600 PRO, which contains magnetically-secured pods; a two-pod SKE CL2000 with transparent casing; the compact 8,000-puff SKE Airy 8000; the SKE PULX Air – an entry-level open system; the SKE PULX open system that features a 2.21 inch touchscreen display, smartphone Bluetooth pairing, and puff tracker; the SKE Edge X with triple-layer leak-proof technology; and the SKE Airknows, which features ceramic air heating without vapor production.

  • Philippines’ Vape Stamp System Working 

    Philippines’ Vape Stamp System Working 

    The Bureau of Internal Revenue (BIR) says the Philippine government’s crackdown on illicit trade is working, collecting P942 million ($17 million) in excise taxes on 130 million milliliters of vape products in the six months since the vape stamp system was introduced. In 2023, those numbers were only P224 million ($4 million) and 11.2 million milliliters for the year.

    Tax authorities vowed to intensify efforts to catch and charge noncompliant players in the growing vape market.

    “There will be no letup in our fight against illicit trade,” BIR commissioner Romeo Lumagui Jr. said. “Just recently, we filed criminal cases against importers of vape products. This shows that the campaign against the illicit trade in vape products is continuous, and we will not stop until we address this issue.”

    The BIR chief was referring to tax evasion cases filed in April against large-scale illicit vape businesses for failure to pay P8.68 billion ($156 million) in taxes. The charges involved illegal vape traders selling the brand names Flava, Denkat, and Flare. The BIR also recently combined with the Bureau of Customs to destroy P3.26 billion ($58.7 million) of seized vape products.

    Lumagui said BIR’s efforts extend beyond distributors and importers.

    “All those involved in the trade of untaxed vape products, including sellers, endorsers, and influencers, could face tax evasion charges under the tax code,” he said.

  • Philippine Government Urged to Fight Illicit Trade with Lower Taxes 

    Philippine Government Urged to Fight Illicit Trade with Lower Taxes 

    As the Philippine government is making progress against illicit vape products with tax stamps, the Philippine Tobacco Institute (PTI) suggests it lower tax rates on cigarettes to replenish its declining revenues as the price disparity between legal and illicit products worsens. Last year, illicit tobacco incidence reached a record 18.2%.

    PTI said tax policies and illicit trade are inextricably linked as the organization pushes for the recalibration of tobacco excise taxes and enhancement of enforcement and prosecution efforts. It issued the call days before the Senate Committee on Ways and Means discusses House Bill 11360, which seeks to adopt an odd-even scheme in hiking the tobacco excise taxes: 2% every even-numbered year and 4% every odd-numbered year until 2035. The current tobacco excise tax rate increases by 5% annually, with a base tax of P60 ($1.08) per pack.

    PTI president Jericho Nograles argued that overly aggressive or automatic tax hikes can incentivize illicit trade. He said higher taxes widen the price gap between legal and illegal products, thus increasing the profitability of smuggling and counterfeiting. PTI said tax revenue continues to decline while smoking incidence increases, meaning people are switching products, that can cost P40 (72 cents) per pack versus P140 ($2.52) for legitimate ones.

     “The automatic tax hikes have resulted in declining government revenues,” Nograles said. “Our position is that if Congress lowers the rates and the government steps up in enforcement, then there would likely be better collections and revenues. It would not only be acceptable, but a win-win for industry and government when illicit trade in tobacco is stopped.”

  • 22nd Century Sees 50% Jump from Q4 2024 to Q1 2025

    22nd Century Sees 50% Jump from Q4 2024 to Q1 2025

    22nd Century Group, Inc. today (May 13) announced results for the first quarter, ended March 31, and provided an update on recent business highlights. Compared to the fourth quarter 2024, first quarter 2025 saw net revenues increase from $4 million to $6 million and gross profit losses declined from $1.3 million to $600,000. Operating expenses decreased from $2.8 million to $2 million, the lowest quarterly amount since company restructuring began in 2023, and operating losses decreased from $4.1 million to $2.6 million.

    “Our first quarter results demonstrate the positive trends we expect to build on in 2025 as we secure new opportunities to drive volume across our VLN, core CMO and filtered cigar businesses, with a particular emphasis on leveraging both our own and customer driven campaigns for partner branded products,” said Larry Firestone, CEO of 22nd Century Group. “We are excited about the upcoming launch of now two partner-branded VLN products, both for chains with substantial retail store counts, bringing additional partner-supported marketing and outreach activity to grow sales volumes in the VLN category. We are moving ahead on these and other opportunities ahead as we continue to execute our growth strategy in 2025.”

    View the full financial report here.

  • BAT Launches New Campaign as it Updates Neo Series

    BAT Launches New Campaign as it Updates Neo Series

    British American Tobacco (BAT) Japan announced the fourth cycle of the “Live Life in Color” campaign with the launch of its Limited Edition glo Hyper Pro Aurora heated tobacco device. BAT is looking to revive the glo franchise in Japan, the world’s largest and most competitive heated tobacco market, as its category share dipped from 20.1% in 2022 to 17.8% in 2024.

    The device will only be available at the official VELO online store beginning May 26, with a price of ¥4,980 (US$33.6). “Live Life in Color” is glo’s brand campaign with the theme “Turn vibrant days into joy.” BAT further enhanced the richness and fullness of the fruity flavors, improving the aroma and taste, while also enhancing the cooling sensation for an even more refreshing experience.

    In addition, BAT also revamped the entire neo series by upgrading the packaging colors and changing the flavor names. The packaging colors now match the flavors, making it easier for consumers to recognize the flavor. In particular, the color of the menthol packs changed from dark to light as the flavor changed from strong to weak menthol.

  • JTI Adds Three Flavors to Pouch Line

    JTI Adds Three Flavors to Pouch Line

    Japan Tobacco International UK has expanded its Nordic Spirit nicotine pouch line by introducing “three on-trend flavor variants designed to elevate the consumer experience and cater to the growing demand for berry and tropical flavors.” With Nordic Spirit already delivering £4.5m in value sales each month

    Available now for independent retailers and symbol groups, the new Raspberry, Tropical Mix, and Forest Berries offerings feature a quicker and stronger flavor release, along with increased moisture content. The packaging and pouch size has also been changed to be more convenient for the user.

    “Consumers in this space are seeking bolder flavor experiences and greater variety from nicotine pouches,” said Bruce Terry, Portfolio Brand Manager at JTI UK. “That insight guided the development of our latest Nordic Spirit range, where we placed a strong emphasis on both intensity and diversity of flavors.

    “With enhanced taste profiles and a more impactful sensory experience, our new variants are set to excite the category, creating a valuable opportunity for retailers to drive sales and maximize profitability.”

    Retailers can purchase the new Nordic Spirit flavors through wholesalers or via the JTI360 website.

  • Zimbabwe, Philippines Create Tobacco Pact 

    Zimbabwe, Philippines Create Tobacco Pact 

    Tobacco producers in Zimbabwe and the Philippines have entered into a pact to work together and share expertise. Tobacco is Zimbabwe’s largest agricultural export, generating $1.3 billion from 236 million kg exported in 2024, and is expecting to export 300 million kg this year. Of that, however, 98% of the tobacco is exported raw, allowing manufacturers in 60 other countries to collect much of the profits. The Philippines, on the other hand, processes 46 billion cigarettes domestically each year.

    “This is an ideal opportunity for Zimbabwean farmers and processors,” Musi Muzite, acting executive secretary for Zimbabwe’s National Economic Consultative Forum, said. “We have made significant progress in production, and by leveraging the Philippines’ expertise in processing, we can unlock greater value across the entire tobacco chain.”

    Through the Tobacco Value Chain Transformation Plan, Zimbabwe hopes to convert the tobacco manufacturing sector into a $5 billion industry by 2030 by promoting local value addition, increasing domestic funding, and improving infrastructure, such as curing facilities. It also hopes to increase its tobacco exports in the Philippines.

    “We have been in Zimbabwe and our mission is to explore areas where we can collaborate, particularly in the production of tobacco,” Robert Ambrose, the Philippines’ National Tobacco Administration regulatory manager said. “While we have a comparative advantage in processing, Zimbabwe leads in raw tobacco production, and we see great potential in combining our strengths.”