Category: News This Week

  • Australian State Ups Penalties for Illicit Tobacco 

    Australian State Ups Penalties for Illicit Tobacco 

    Australia’s New South Wales government has introduced major reforms that are expected to be phased in by July 1 to combat illicit tobacco sales. They include a new licensing scheme for retailers and significantly increased penalties for offenders. NSW is following the lead of Queensland, which recently enacted similar measures.

    Under NSW’s new laws, businesses will need to obtain a tobacco retailing license or face fines of up to A$220,000 ($140,000) for corporations and A$44,000 ($28,000) for individuals. Retailers with a current Retailer Identification Number (RIN) will receive information on how to apply for a license. 

    Heavier penalties are now in effect for offenses such as selling single cigarettes or in packs of less than 20, tobacco products without health warnings, or using prohibited packaging. Corporations caught committing these offenses face fines of up to A$770,000 ($493,000), while individuals can be fined A$154,000 ($98,600). 

    The new laws have also strengthened penalties for both individuals and corporations caught selling tobacco products to minors. Individuals can be fined up to A$22,000 ($14,000) for their first offense and A$110,000 ($70,400) for subsequent offenses, while corporations face fines of up to A$110,000 for a first offense and A$220,000 for further offenses.

  • Thailand: Vape Users Can be Charged with Receiving Smuggled Goods 

    Thailand: Vape Users Can be Charged with Receiving Smuggled Goods 

    The Thai government will take tougher action against e-cigarette users, who can now be charged with receiving smuggled products, deputy government spokesman Anukul Prueksa-anurak said. The government will step up its suppression efforts of e-cigarettes and related products, prosecuting not only smugglers and distributors but now also the users. 

    Under the Customs Act, the offense carries a jail term of up to five years and/or a fine equivalent to four times as much as the prices of smuggled products plus any duty. E-cigarettes are illegal in Thailand, but that has not stopped them from being openly sold, even in areas near schools, leading to an alarming increase in vaping among young people. The recent hospitalization of teens with lung damage has drawn further attention to the problem.

    Anukul said the percentage of vape users among people aged 15-29 years rose from 5.8% in 2019 to 12.2% in 2024.

    Prime Minister Paetongtarn Shinawatra recently ordered a serious crackdown on e-cigarettes, particularly online sales channels. Anukul said that in the two months since the crackdown began, sales and the number of e-cigarette users had dropped by more than 80%.

  • Zimbabwe: Grower’s Investment in Quality Pays Off

    Zimbabwe: Grower’s Investment in Quality Pays Off

    Thirty days into the marketing season, Zimbabwe’s Tobacco Industry and Marketing Board reminded growers that quality tobacco that is properly grown, cured, conditioned, graded, and baled attracts top prices at the market, and they should handle their tobacco with care at every stage to avoid lamina damage. The board used Pedia Matamisa, a self-financing grower from Murehwa’s Percyvale Farm, as the face of its message.

    Matamisa was a beneficiary of the Land Reform Program under A2 and this year received the highest tobacco price on the auction floor when two of her bales fetched $4.99 per kilogram. Her lowest price was $2.33 per kilogram and she averaged $3.28. She said last year she averaged $1.79.

    Previously using porous, plastic barns to cure, Matamisa said fellow farmers helped her realize that the use of good barns had a bearing on the quality of the leaf and she decided to improve hers. Unable to get a loan, she sold her car to help get the $5,000 she needed to build a “rocket barn.”

    Originally designed in 2008 in Malawi, Kutsaga Research began building the Zimbabwean version of rocket barns in 2011, which not only help provide consistent heat to improve curing quality but also reduce the amount of fuel needed by up to 50%.

    Matamisa also urged other farmers to properly grade their leaves according to size and not mix the short and long ones.

     “I had two bales that were rejected because of these mixing issues,” she said. “Besides the disadvantage of lowering your prices, this also brings additional re-handling costs.”

  • JTI Completes Promotion for Ultra Value Products

    JTI Completes Promotion for Ultra Value Products

    Japan Tobacco International announced the winner of its Mayfair Gold competition that ran from September 2024 to February 2025, promoting the launch of the Mayfair Gold Rolling Tobacco (RYO) and continuing the momentum of Mayfair Gold Ready Made Cigarettes. Imran Ghaffar, of Wilsons Supermarket in, Kirkcaldy, Scotland, won a new Mini Cooper.

    The competition was open to all retailers, with participants earning entries by scanning the barcodes of Mayfair Gold RMC or RYO outers using the JTI360 scanner. Each scanned code acted as an entry ticket. Each week, five tickets were drawn, with retailers winning prizes such as £100 gift cards, iPads, and headphones. The competition gained 142,000 entries, and at the end, the grand-prize winner was drawn.

    “The Mayfair Gold JTI360 competition was a fantastic opportunity for us to continue supporting hard-working retailers across the UK,” said Lisa Anderson, Marketing Director at JTI UK. “We recognize the vital role they play in communities up and down the country, and we’re proud to offer initiatives like this that reward their hard work and dedication. We congratulate Imran and hope he enjoys his new car!”

    Mayfair Gold represents JTI’s most affordable cheapest offering in both the RMC and RYO sectors. JTI said the Ultra Value sector remains the fastest growing in share terms at 17.6% of the combined tobacco market.

    “Over 70% of shoppers who purchase tobacco in convenience stores say price is the main reason for their visit, and the majority of tobacco customers said price is important when purchasing the product in store, therefore, retailers should ensure they remain competitive by selling at [recommended retail price],” Anderson said. “Retailers can take advantage of the Margin Calculator on JTI360, JTI’s retailer hub, to establish their profit per pack [of JTI brands], making it easier to set competitive prices without sacrificing profitability.”

  • Durbin, No. 2 Senate Democrat and Anti-Tobacco Crusader, to Retire

    Durbin, No. 2 Senate Democrat and Anti-Tobacco Crusader, to Retire

    Senator Richard J. Durbin of Illinois, the No. 2 Senate Democrat for two decades and a leading liberal voice on Capitol Hill, announced today (April 23) that he would not seek re-election next year, closing out a 44-year congressional career focused on immigration, the federal justice system, and anti-smoking initiatives. According to the New York Times, the decision was widely expected and will immediately touch off a crowded competition for a rare Senate vacancy in his solidly blue state.

    Durbin entered Congress in 1983, and as a junior member of that chamber, led the drive to ban smoking on airplanes, helping to usher in the smoke-free movement with legislation signed by President Ronald Reagan in 1988.

    “That has to be the most significant thing I’ve done in terms of changing America,” Durbin said. “I was trying to get away from a health hazard, and I ended up reaching a tipping point on tobacco in America. I didn’t see that coming.”

    After winning a Senate seat in 1996, Durbin famously kept the tobacco and nicotine industry in his crosshairs. Motivated by the death of his father due to smoking, Durbin was a leading advocate for the Tobacco Control Act that gave the FDA authority over tobacco products and championed the federal lawsuit that resulted in a historic verdict that painted the major tobacco companies as racketeers who lied to the public for decades. In recent years, he turned his attention to e-cigarettes and flavored tobacco products.

    In 2022, the American Vapor Manufacturers Association (AVM) requested that the Senate Ethics Committee investigate Durbin for allegedly violating Senate rules by attempting to improperly influence the FDA’s scientific decisions about vaping products. The organization alleged Durbin pressured the FDA to ban all vaping products despite the agency’s premarket tobacco product application (PMTA) review process.

    At the time, Tobacco Reporter wrote, “Citing Durbin’s track record (urging the FDA to ban vapor products via letters, Senate floor speeches, press releases and private meetings) the AVM says it believes Durbin attempted ‘to interfere with and influence the outcome of an ongoing executive branch agency review process in violation of Senate Ethics rules.’”

    The AVM did not hold back with Durbin’s retirement news, saying today on X, “Durbin exits, leaving a trail of ash and arrogance. His intransigent, science-denying vendetta against vaping doomed countless smokers to misery. May his name be etched in infamy: the public health saboteur who’d rather outlaw hope than face facts.”

    Several Illinois Democrats have indicated an interest in running if the seat opened up and have been readying for a potential candidacy. It is likely to be one of several highly competitive primaries in both parties over the next 18 months, as Democrats embark on an uphill slog to reclaim the Senate majority and Republicans grasp to hold on to it.

  • China Tackles North Korean Cigarette Bootleggers 

    China Tackles North Korean Cigarette Bootleggers 

    Chinese authorities have intensified their crackdown on smuggled North Korean cigarettes, one of Pyongyang’s primary illicit exports, causing the distribution network to shrink dramatically, Daily NK has learned. Although secretly distributed in China for years and popular among local consumers for their value, the contraband cigarettes now face serious challenges as distributors and sellers are being arrested or fined.

    “This month alone, three Chinese dealers handling North Korean cigarettes were arrested for smuggling,” a Daily NK source in North Pyongan province said recently. “Distribution has virtually stopped as Chinese authorities target mail and parcel services in Liaoning and Jilin provinces.”

    About 20 cigarette brands from North Korea’s major tobacco factories—including Yalu River Cigarette Company, Pyongyang Unha Tobacco Factory, and Naegohyang Tobacco Factory—were being sold secretly in Chinese markets.

    North Korean cigarettes match Chinese luxury brands in quality but cost less, making them consistently popular among Chinese smokers. Despite prices nearly doubling since pre-COVID times, they remain cheaper than local alternatives, maintaining steady demand. The situation changed abruptly when China’s State Tobacco Monopoly Administration partnered with police to intensify operations against illicit North Korean cigarette imports and distribution. Those caught distributing or selling the contraband now face substantial fines or prison sentences. 

    “Chinese traders now avoid cigarettes as police raid warehouses and seize stores based on tip-offs,” the source explained. “With 200,000 yuan  ($28,000) fines and threats of being treated like drug dealers, traders are either complaining or quitting the business.”

  • PMI Surpasses Estimates for Fourth Straight Quarter

    PMI Surpasses Estimates for Fourth Straight Quarter

    Today (April 23), Philip Morris International announced first-quarter earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.61 per share. This is a 12.7% increase, and compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items, and mark the fourth straight quarter the company has surpassed consensus EPS estimates.

    PMI posted revenue of $9.3 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.97%.

    “We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an excellent top-line performance and very strong margin expansion,” said Jacek Olczak, Chief Executive Officer. “Our smoke-free business goes from strength to strength, delivering organic growth of over 20% in net revenues and over 33% in gross profit.

    “We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year.”

    PMI’s smoke-free business saw a 14.4% increase in shipment volumes, and now accounts for 42% of its total net revenues and 44% of its total gross profit.

  • KT&G Opens Kazakhstan Plant

    KT&G Opens Kazakhstan Plant

    KT&G hosted the completion ceremony of its new Kazakhstan factory yesterday, which will be the production hub for its Eurasian market. The ceremony took place at the 52,000㎡ factory grounds in Almaty. The factory will be an export outpost and core production base that meets the demands of recently growing Europe, CIS, and the Eurasian markets, and is expected to produce 4.5 billion cigarettes a year.

    The construction of the new factory in Kazakhstan is part of KT&G’s CAPEX investment program announced at the “Future Vision Declaration Ceremony” held in January of 2023. KT&G plans to increase the proportion of global revenue to 50% by 2027 through the expansion of direct global operations and other measures, heightening core business competitiveness.

    “With the completion of the new Kazakhstan factory, KT&G has laid the foundation of a Global Manufacturing Network that will tow our global competitiveness,” KT&G CEO Kyung-man Bang said. “KT&G will accept challenges in the future and expand our global direct business to increase profitability as well as corporate value, and share the gains with our stakeholders.”

    After the ceremony, KT&G signed a Memorandum of Understanding on the “Green Globe Project” that aims to assist in local reforestation efforts. Through the project, the company plans to assist recovery from the June 2023 Abai wildfire.

  • Greece Considering Flavor Ban

    Greece Considering Flavor Ban

    Euractiv is reporting that Greece is preparing a bill to ban all flavored alternative tobacco products, sparing only natural tobacco and mint. Athens has generally opposed both stricter rules for alternative tobacco products and calls to treat them like traditional cigarettes, but according to Euractiv the political case for tougher action is growing. The ban is part of a bill aiming to make it stricter for minors to access alcohol and tobacco products, following incidents of teenagers fainting in a nightclub after consuming excessive alcohol.

    The bill is in “final stages of internal consultation,” a source said, though it’s still unclear whether the flavor ban will survive in the final text. Legally, a total ban would need to be approved by the European Commission and could take up to six months.

    Analysts in Athens say that the bill is a step in the right direction, largely due to its broader crackdown on underage access to alcohol and tobacco products, however, some government officials outside the health ministry have questioned why the flavor ban is being included in a bill ostensibly focused on protecting minors.

    “A total ban doesn’t make sense as it also punishes adult consumers,” an industry source said. They explained that in other countries, such as the UK, flavored products remain on the market and are promoted as tools to help adult smokers quit traditional cigarettes.

    Meanwhile, the association of traders of vaping products warned in a letter to the government, seen by Euractiv, that a total ban would result in 400,000 vape users switching to the “uncontrollable” black market.

  • POSaBIT Hosting FY24 Webcast

    POSaBIT Hosting FY24 Webcast

    POSaBIT Systems Corporation, a financial-tech company that works exclusively in the cannabis industry, will host a conference call and live webcast April 24 at 4:30 PM ET to discuss the results of its fourth quarter and full year 2024. The company is soliciting investor questions until noon that day, with the top aggregated questions being answered on the call by the CEO.

    Toll Free: 888-506-0062
    International: 973-528-0011
    Participant Access Code: 977825
    Webcast URL: https://www.webcaster4.com/Webcast/Page/2708/52361Conference Call Replay Information:
    Toll Free: 877-481-4010
    International: 919-882-2331
    Replay Passcode: 52361
    Webcast Replay URL: https://www.webcaster4.com/Webcast/Page/2708/52361