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Category: News This Week

  • Bidi Opens Latest Appeal Against FDA

    Bidi Opens Latest Appeal Against FDA

    Yesterday (April 2), Bidi Vapor LLC urged the Eleventh Circuit to reverse a U.S. Food and Drug Administration decision denying its application to market a disposable e-cigarette, saying the agency acted unlawfully. In oral arguments in Miami, attorney Eric Gotting told an appellate panel that the FDA’s decision was “arbitrary and capricious and unlawful,” and that the agency admitted adult smokers would likely switch to Bidi’s safer product—a disposable e-cigarette prefilled with tobacco-flavored e-liquid—but still denied the application.

    In January 2024, the FDA issued a marketing denial order (MDO) for the tobacco-flavored Bidi Stick-Classic disposable vape. The decision came while the agency was continuing a court-ordered second review of marketing applications for flavored Bidi Vapor products. The FDA said Bidi’s premarket tobacco application “did not demonstrate an overall net benefit to people who use tobacco products and lacked sufficient evidence to address health risks.”

    Bidi believes the FDA violated the Administrative Procedure Act and hopes to build on its record of successfully contesting adverse FDA decisions. In August 2022, the 11th Circuit set aside the original MDOs issued for its 10 non-tobacco-flavored products. That ruling put the 10 PMTAs back into scientific review and allowed those flavors to remain available for sale pursuant to the FDA’s compliance policy for deemed tobacco products.

  • PMI Outlines Smoke-Free Progress in Annual Report

    PMI Outlines Smoke-Free Progress in Annual Report

    Philip Morris International today (April 3) published its sixth annual Integrated Report, marking the company’s 10th year of business transformation and sustainability disclosures. The document details PMI’s continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible.

    “Our 2024 Integrated Report celebrates a milestone year that marked the 10thanniversary of the commercialization of IQOS, VEEV, and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,” said Jacek Olczak, Chief Executive Officer of PMI. “By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach an estimated 38.6 million adult users, with the products available in 95 markets, demonstrating our deep commitment to sustainability and business transformation. These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.”

    The report describes the company’s strategy, business model, and both product-related and operational-related performances. The report explains the company’s performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact

    “The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control,” said Emmanuel Babeau, Chief Financial Officer of PMI. “Our smoke-free business accounted for approximately 39% of PMI’s total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey. Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.”

    Performance Highlights:

    • Six markets where more than 75% of net revenues are generated are smoke-free
    • $14 billion cumulative investment behind smoke-free products since 2008
    • 99% of total shipment volume covered by youth access prevention programs in indirect retail channels
    • 0.01% prevalence of child labor among contracted farmers supplying tobacco to PMI
    • 10 human rights impact assessments completed since 2018 in highest-risk countries
    • 61% of PMI manufacturing facilities certified as carbon neutral
  • Cigar Industry Preparing for Trump’s Tariffs

    Cigar Industry Preparing for Trump’s Tariffs

    Yesterday (April 2), President Trump announced that the United States would be implementing widespread tariffs on nearly all products imported into the U.S., which would seemingly include cigars and smoking accessories.

    The Administration is implementing a 10% baseline tariff on nearly all imported goods from all countries except goods that are compliant with the USMCA free trade agreement between the U.S., Mexico, and Canada. Additionally, a group of approximately 60 countries is facing additional reciprocal tariffs that are half the rate they charge to the United States.

    “We are monitoring the situation and engaging with appropriate stakeholders to protect the robust premium cigar market in the United States,” said Joshua Habursky, executive director of the Premium Cigar Association. “The administration is well aware of the importance of small business retail in main streets across the country, and we are hoping to mitigate cost burdens on retailers, manufacturers, and consumers overall. America is first in the premium cigar retail space, and we plan to continue to hold that position.”

    The announced new reciprocal tariffs for countries that are relevant to the U.S. cigar industry include:

    • Dominican Republic and Honduras: 10% (matching the universal rate).
    • Nicaragua: 19% (reflecting its 36% tariff on U.S. goods).
    • Costa Rica: 10% (despite a 17% tariff on U.S. goods).
    • Mexico: USMCA-compliant cigars remain at 0%, but non-compliant goods face a 12% tariff if existing fentanyl/migration measures lapse.
    • China: 34 percent
    • European Union: 20 percent

    Writing for halfwheel, Patrick Lagreid said, “The largest percentage increase will not affect cigars, but the accessories used to light and cut them. Products imported from China, which produces a significant amount of cigar accessories, from lighters to cutters, ashtrays, humidors, and other products, will be subject to a 34% reciprocal tariff. This is in addition to a previously implemented 20% tariff, bringing the total to 54%. Last year, multiple executives at cigar accessory companies told halfwheel they were concerned about the potential tariff if Trump were to win the election.”

    The baseline 10 percent tariffs are scheduled to take effect April 5 at 12:01 am ET, and the reciprocal tariffs are slated to go into effect April 9 at 12:01 am ET.

    “We are fully committed to protecting the premium cigar industry, which plays an essential role in supporting American small businesses and consumer interests,” Rob Burgess, of Connector Inc., a PCA Government Affairs representative said. “The PCA’s government relations team is working diligently, engaging actively with government officials and key stakeholders to address the implications of these tariffs. Our aim is to reduce financial pressures while ensuring the United States continues to lead in the premium cigar market, benefiting retailers, manufacturers, and consumers alike.”

    In a statement sent out to its members, Cigar Rights of America said that it is “carefully reviewing the scope and details of today’s policy shift to understand its potential impact on the premium cigar industry, including supply chains, pricing, and retail operations. As the federal government moves forward with implementation, we will continue to monitor developments closely and engage with relevant agencies. We are committed to keeping stakeholders informed and will provide timely updates as additional information and guidance become available.”

    The tariffs come the week before the American cigar industry’s most important sales week: the annual PCA Convention & Trade Show. Most manufacturers will offer retailers aggressive discounts to try to get larger orders, but it’s unclear whether some companies will modify their promotions to account for these tariffs.

  • Maldives Proposing Generational Ban on Tobacco

    Maldives Proposing Generational Ban on Tobacco

    During a podcast hosted by his office, Maldives President Dr. Mohamed Muizzu said that he is considering three proposals for a “generation ban” on tobacco, aiming to prevent younger generations from smoking. The proposals differed only in date, when people would be forever banned from smoking if born after January 1 in either 2000, 2004, or 2007.

    Explaining the rationale behind these options, President Muizzu stated that focusing on the 18 to 25 age group and below would make it easier to prevent addiction before it becomes deep-seated. He also highlighted the importance of consulting medical professionals and other stakeholders in formulating the policy and said that Health Minister Abdulla Nazim Ibrahim has been tasked with drafting a Cabinet paper on the proposed ban.

  • Black Buffalo Adds Pro Slapper as Brand Ambassador

    Black Buffalo Adds Pro Slapper as Brand Ambassador

    Black Buffalo announced the addition of Power Slap standout Branden “The Butcher” Bordeaux to its growing roster of brand ambassadors. The alternative tobacco company’s roster of ambassadors includes UFC legends, pro athletes, and military heroes “who believe in hard work and resilience.”

    “A butcher, family man, and rising force in the world of Power Slap, Bordeaux embodies the resilience, grit, and work ethic at the core of the Black Buffalo brand,” the company said in its press release. “From running a mobile slaughter business in West Michigan to delivering heavy-handed performances in one of the fastest-growing combat sports, Branden brings a blue-collar mentality and unwavering purpose to everything he does.”

    As part of the partnership, Bordeaux will collaborate with the brand on exclusive content, community engagement, and bringing more visibility to Black Buffalo’s tobacco-alternative offerings.

    “I was introduced to Black Buffalo because I am a longtime dipper,” Bordeaux said. “Amazing company, with amazing products, run by even better people, and that’s what means the most to me. I am very honored to be part of the Black Buffalo family and to have such a great team of individuals behind me.”

  • Washington: State Lawmakers Want to Increase Taxes and Ban Products

    Washington: State Lawmakers Want to Increase Taxes and Ban Products

    Democratic lawmakers in the state of Washington have revamped their approach to banning flavored tobacco products and combined it with an increase in cigarette taxes. The new legislation, House Bill 2068, revives the ambitious and controversial prohibition that made little progress in the state so far this year.

    The initial proposal banned flavored e-cigarettes and nicotine products beginning 90 days after the legislative session ends. The new ban, however, would begin July 1, 2027, allowing the state to continue collecting tax revenue for a budget that is predicted to have a $16 billion deficit over the next four years.

    Critics of such bans argue they lead to increased cigarette use as consumers look for alternatives, and that people who’ve turned to electronic cigarettes to quit smoking traditional cigarettes would no longer have flavored options. 

    Also in the new bill, according to Jake Goldstein-Street writing for the Washington Standard, the age to purchase nicotine pouches would be raised to 21 and “a $2-per-pack tax on cigarettes would be added that would rise with inflation. The first $5 million from the new tax would go toward preventing youth tobacco and vape use, while the rest would go into the state’s general fund.” Washington smokers already face one of the nation’s highest state cigarette taxes, totaling $3.77 between excise and sales taxes, he said. The tax new provisions would take effect Jan. 1, 2026.

  • Belgium Tobacco Display Ban Goes into Effect

    Belgium Tobacco Display Ban Goes into Effect

    Belgium’s new laws to limit the visibility of cigarettes and other nicotine products, with the hope of curbing impulse purchases, went into effect yesterday (April 1). Cigarettes and other tobacco products can no longer be displayed in shops and stores larger than 400 square meters are banned from selling such products altogether. This is the second phase of a program that included the ban of disposable e-cigarettes beginning Jan. 1.

    “Our ambition is to have a smoke-free generation by 2040,” said Belgian Health Minister Frank Vandenbroucke. “From now on, it is illegal to have cigarettes or vapes on display, that is visible, in a store. It is not a prohibition on buying this stuff. You can buy it, but you have to ask the vendor.”

    No specific guidance or material on how to handle tobacco products was provided to retailers. Each shop has had to find its own solution to the display ban, from handmade plastic curtains to sophisticated shelves that automatically light up when opened.

    “It is annoying because the government hasn’t given us any supply,” said news and tobacco shop owner Jenny Van Vaerenbergh. “They should have provided the necessary equipment.”

  • Sources: Big Changes for Hong Kong Tobacco Laws in 2026  

    Sources: Big Changes for Hong Kong Tobacco Laws in 2026  

    Last year, Hong Kong’s Special Administrative Region government proposed 10 tobacco control measures that prompted backlash from businesses and smokers alike. Now, sources say the Health Bureau plans to submit an amendment bill to the Legislative Council by the end of this month based on those measures, which would include items such as increased penalties for illegal tobacco sales, a ban on flavored cigarettes, and expanded smoke-free areas.

    The sources said the regulations would be implemented in 2026, typically in two phases.

    E-cigarettes would be banned in public spaces starting as early as the second quarter of next year, with potential extensions to private areas and other devices depending on favorable outcomes. The ban on flavored cigarettes would begin with non-menthol flavors first, and then menthol later, with no specific timeline set.

    The new proposal would also focus on combating illegal tobacco, with a trial starting mid-year to add identification labels on duty-paid cigarettes. Authorities would also increase penalties for smuggling; the maximum fine for buying, selling, or possessing illegal cigarettes will rise from HK$1 million ($130,000) and two years in prison to HK$2 million ($260,000) and seven years in prison. Travelers bringing more than 19 packs of duty-free cigarettes to Hong Kong would see fines increased from HK$5,000 ($650) to over HK$8,000 ($1,040).

  • Supreme Court Favors FDA in Flavor Battle

    Supreme Court Favors FDA in Flavor Battle

    Today (April 2), the Supreme Court unanimously overturned a lower court’s decision that the U.S. Food and Drug Administration incorrectly blocked flavored nicotine e-liquids, rejecting e-cigarette makers that were challenging regulatory hurdles on tobacco products.

    E-liquid companies Triton Distribution and Vapetasia LLC claimed the FDA unlawfully denied the marketing authorization for flavored vape products and disputed that the products appealed to children, arguing that the government was harming nicotine-addicted adults by keeping a cigarette alternative off the market.

    The vape companies argued the FDA failed to review the company’s own scientific evidence, which demonstrates its flavored products were crucial to getting smokers to switch from combustible cigarettes to e-cigarettes. The Fifth Circuit Court agreed with the e-cigarette maker, ruling that “the agency’s rejection was arbitrary and capricious because the FDA relied on conflicting evidence requirements.” The court also faulted the FDA for dismissing “out-of-hand companies’ strategies to keep their products away from minors.” The agency said such efforts haven’t proven to be effective.

    Public health groups had already sued the FDA for not moving fast enough to review the products after the agency, in 2016, finalized rules for regulating them under the 2009 Family Smoking Prevention and Tobacco Control Act. Under the Act, vape companies were forced to submit applications to the FDA in order to bring new vape flavors to market, and the FDA was to assess the public health effects of those products. A rift, however, emerged over the agency’s criteria for approving or denying those applications, which culminated in the Fifth Circuit.

    The fight was brought to the Supreme Court in November with the FDA contending it correctly applied the Tobacco Control Act, saying it considered both the “likelihood that existing users of tobacco products will stop using such products” and the “likelihood that those who do not use tobacco products will start using such products.”

    Oral arguments in front of the Supreme Court centered on whether the FDA standards are a policy position or a substantive rule imposed without notice and comment. The Biden administration argued the standards fell into the policy bucket, pushing the court to give the agency deference to interpret its role under the Tobacco Control Act. 

    Under the Biden administration, the FDA rejected more than a million flavored products, saying companies failed to show that flavored vapes will do more to benefit public health by helping smokers quit tobacco products than the harm they cause by appealing to young people.

    Vaping companies hope they’ll find a friendlier regulatory environment under the Trump administration, as the President previously promised to “save” flavored vaping.

  • Australia’s New Packaging Warnings Take Effect

    Australia’s New Packaging Warnings Take Effect

    Beginning today (April 1), Australia’s new cigarette packaging laws have gone into effect, including that each individual cigarette has a health warning printed on it. Warning phrases include “causes 16 cancers,” “damages your lungs,” and “poisons in every puff.” Canada is the only other country in the world to have such requirements.

    The new laws that went into effect also introduced 10 new graphic health warnings that will be printed on tobacco packaging as well as 10 new inserts that will be placed inside packaging, providing information on the benefits of quitting smoking.

    Sarah Durkin from the Cancer Council said that the graphic health warnings on tobacco packaging have proven effective in educating Australians about the harms of smoking but that the effectiveness of the warnings has decreased over time. 

    “We also have new scientific information that extends our knowledge of the health effects of tobacco use,” she said. “The new graphic health warnings feature some of these harms of smoking that people may not be aware of, such as diabetes, erectile dysfunction, cervical cancer, DNA damage, and the impact of second-hand smoke on children’s lung capacity.”