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Category: News This Week

  • EU Directive Hikes Cigarette Prices in Bulgaria

    EU Directive Hikes Cigarette Prices in Bulgaria

    Changes from the European Commission’s new directive on minimum excise duties for tobacco will drive up the price on a pack of cigarettes in Bulgaria by 2.40 leva ($1.34) beginning April 1.

    According to the draft document, the European Commission’s revised minimum excise duty on cigarettes will double to 180 euros per 1,000 cigarettes or 3.60 euros per pack. The new excise rates will be adjusted based on national price levels, with data from the European Statistical Office showing that tobacco product prices in Bulgaria are 56.6% of the EU average.

    The updated minimum excise duty for Bulgaria will be 153.96 euros per 1,000 cigarettes, translating to a tax of 6.02 leva ($3.37) per pack of cigarettes, up from the current 4.05 leva ($2.27) after the application of a 20% VAT on the new duty. The Ministry of Finance is trying to decide whether to raise the prices with a series of three incremental hikes, a sharp one-time raise, or the continuation of the current annual increase schedule.

     In addition to the April increase, there will be a further excise tax hike on tobacco products, including cigarettes, on May 1. This increase, included in the 2025 budget, is expected to generate an additional 203 million leva ($113.7 million) in 2025 and a total of 953 million leva ($533.7 million) by 2028.

  • Malaysian Officials Preparing Retailers for April 1 Ban 

    Malaysian Officials Preparing Retailers for April 1 Ban 

    Beginning April 1, Malaysian retailers will not be able to display tobacco products in open displays, but instead must keep them hidden from view in closed cabinets. Act 832, the Smoking Products Control Act for Public Health 2024, covers regulations on the registration, sale, packaging, labeling, and use of tobacco products in public places, as well as the display of them in retail outlets. The Act became law Oct. 1, 2024, but retailers were given a grace period which ends in April.

    Officials from Kuala Lumpur, Penang, and Selangor have been communicating with retailers about the upcoming change in enforcement.

    “Since Act 852 came into effect, the Health Department has visited retail shops selling cigarettes and tobacco products,” said Kuala Lumpur mayor Datuk Seri Maimunah Mohd Sharif. “They have provided explanations and announcements to the sellers, such as at convenience stores.”

    Penang health committee chairman Daniel Gooi Zi Sen said the state Health Department will monitor stalls to ensure they don’t display smoking products at retail outlets.

    “Individuals can be fined from RM500 up to RM30,000 ($112 to $6,750), while organizations may be slapped with up to RM300,000 ($67,500) in fines, or jailed,” he said. “Retailers can only use designated signboards to show the availability of cigarette or vaping products and the prices. Certain specialized stores are allowed to display smoking products, but must prominently feature warning signs.”

  • El Septimo Celebrates 20Years with New Cigar

    El Septimo Celebrates 20Years with New Cigar

    In celebration of its 20th anniversary, El Septimo announced that “its most daring creation yet,” the Doble Gran Reserva cigar, will debut at the 2025 PCA Show in April. Only 1,000 boxes will be produced, each containing 14 Toro cigars (6 x 52 ). The limited edition will be distributed solely through the top-50 retailers worldwide, priced at $125 per cigar and $1,750 per box.

    The company said it sourced the finest tobaccos from the Dominican Republic, Ecuador, Nicaragua, Honduras, and Costa Rica and meticulously aged them between seven and 10 years. The final blend was a collaboration of more than 60 “esteemed cigar connoisseurs, industry officials, and sommeliers [who] lent their discerning palates and expertise to the design, development, and blending process.”

    “With the Doble Gran Reserva, we have harnessed the collective wisdom of global experts and fused it with groundbreaking scientific techniques in the fermentation process to create an experience that transcends tradition,” said Zaya Younan, CEO of El Septimo. “This cigar is a living testament to our passion for innovation and our unwavering commitment to excellence and producing the best cigars in the world.”

  • Switzerland Continues Tobacco Advertising Debate

    Switzerland Continues Tobacco Advertising Debate

    In 2022, the Swiss people voted to ban “all forms of tobacco advertising accessible to children,” and today the government is closing in on the details of what exactly that entails as it pertains to print media, events, and sponsorships. The Senate called for relaxations of the original law, which the House agreed to and expanded, sending it back to the Senate for its approval.

    The House decided that advertising would be banned in the print media unless it is in an inside section of a publication that is sold mainly through subscription and has a readership of at least 98% adults. It also decided advertising would be permitted for events and sponsorships providing that the materials are neither visible nor accessible to minors.

    Lawmakers also decided to allow tobacco sales by mobile vendors in places accessible to the public that may be frequented by minors, provided that it is guaranteed that the advertising is neither visible nor accessible to minors. The Senate did not consider it necessary to restrict this activity.

  • Virginia Tobacco Begins Trading in Philippines 

    Virginia Tobacco Begins Trading in Philippines 

    The National Tobacco Administration (NTA) said that growers who planted the last week of November have already started bringing flue-cured Virginia tobacco buying stations in Region 1 and Abra to open the 2024–2025 crop season.

    Administrator and Chief Executive Officer Belinda S. Sanchez said NTA extension workers have already calibrated and sealed the trading equipment and facilities of the two biggest tobacco trading outlets in the Ilocos region, as well as the scales of accredited field canvassers

    Trading warehouses of the Universal Leaf Philippines, Inc. in Agoo, La Union; Candon City and Cabugao, both in Ilocos Sur; Currimao, Ilocos Norte; and Bangued, Abra; and the warehouse of Trans Manila Incorporated (TMI) in San Juan, Ilocos Sur, are now open.

    Trading centers opened by purchasing a kilo of prime class of flue-cured tobacco at P107 ($1.89) while field canvassers in the first district of Ilocos Sur bought the same class of cured tobacco as high as P125 ($2.13) per kilo. With these, Sanchez said she is expecting another golden season for tobacco farmers this year, as the current tobacco buying prices are much higher than the approved tobacco floor prices during the tripartite conference in October 2023.

  • Meeting Held to Tackle Illicit Cigarettes in Western Balkans

    Meeting Held to Tackle Illicit Cigarettes in Western Balkans

    A high-level meeting to discuss measures to combat the illicit trade of tobacco products in the Western Balkans was held in Montenegro this week, where multiple institutional representatives highlighted the severity of the problem that negatively impacts public health, public finances, and regional security. The meeting was hosted by the Ministry of Finance of Montenegro in cooperation with the Secretariat of the WHO Framework Convention on Tobacco Control (the Convention Secretariat), and the WHO Regional Office for Europe.

    Novica Vuković, the Minister of Finance of Montenegro, said coordination among Balkan countries is key to effectively resolving the issue and called for strengthening joint action and information exchange between states. He stressed that eliminating the illicit tobacco trade is not an option but a priority. “Illicit tobacco trade is a global problem, and its impact particularly affects the countries of the Western Balkans,” he said. “Although the situation is serious, I believe that through joint efforts, we will be able to take concrete measures to reduce this harmful practice.”

    The Prime Minister of Montenegro, Milojko Spajić, emphasized that customs officers had seized millions of dollars of illegal cigarettes, preventing their further smuggling. He added that recent actions by the Special State Prosecutor’s Office and the Special Police Department had resulted in the arrest of numerous members of organized crime groups.

    The Ambassador of the EU to Montenegro, Johann Sattler, said, “There is an urgent need for a strong and coordinated approach to tackling illicit tobacco trade, which will improve public health, protect state revenues, and enhance the fight against organized crime. The EU remains committed to supporting Montenegro in this effort. I urge Montenegrin institutions to seize this opportunity, take decisive steps, and demonstrate their commitment to upholding the rule of law, including the destruction of illegal tobacco products seized in 2022.”

  • FDA Says it Prevented 444,000 Youth from Using E-Cigs Last Year

    FDA Says it Prevented 444,000 Youth from Using E-Cigs Last Year

    Today, a study co-authored by U.S. Food and Drug Administration scientists was released showing the agency’s youth e-cigarette prevention campaign, “The Real Cost,” successfully reduced e-cigarette use among youth. The campaign, which launched in 2018 under the leadership of President Trump, was found to have prevented an estimated 444,252 American youth (age 11 to 17 at study recruitment) from starting to use e-cigarettes between 2023 and 2024.

    Published in the peer-reviewed scientific journal American Journal of Preventive Medicine, the study found evidence that the campaign contributed to the nearly 70% decline in e-cigarette use among American youth that has occurred since 2019. According to the National Youth Tobacco Survey, the number of U.S. middle and high school students who currently use e-cigarettes has declined from 5.38 million in 2019 to 1.63 million in 2024, the lowest level in a decade.

    “As part of our work to Make America Healthy Again, we must ensure that children have a healthy start in life,” said Acting FDA Commissioner Sara Brenner, M.D., M.P.H. “This includes taking evidence-based actions to prevent youth tobacco product use.”

    Data from the evaluation, which followed a nationally representative sample of U.S. youth over time, showed that viewing ads from “The Real Cost” lowered chances that youth who had never used an e-cigarette would later initiate use. The survey collected information on how frequently youth were exposed to “The Real Cost” campaign and which youth went on to try e-cigarettes, among other variables.

    “Adolescence is a critical period for prevention efforts because most adults who use tobacco products begin using them in their teenage years,” said Brian King, Ph.D., M.P.H., director of the FDA’s Center for Tobacco Products. “Youth tobacco prevention campaigns not only work, but they are also a cost-effective approach to protecting young people from a lifetime of nicotine addiction.”  

    “The Real Cost” Youth E-cigarette Prevention Campaign uses a variety of marketing tactics and creative advertising to reach youth. Advertising and prevention materials are delivered across communication channels relevant to teens, including digital and streaming platforms, social media and gaming platforms. The agency’s activities also include compliance and enforcement actions across the supply chain – in coordination with federal partners using their unique authorities – to ensure that those that make, distribute or sell illegal tobacco products are held accountable to the law.

  • Ibis Luis Leaving Plasencia Cigars

    Ibis Luis Leaving Plasencia Cigars

    Plasencia Cigars announced today (March 14) that Ibis Luis would be leaving the company after six years as its sales and marketing specialist. Luis is a Certified Bourbon Steward, a Certified Cigar Sommelier, and somewhat of a celebrity in the cigar world.

    “Ibis has been an incredible member of our team, profoundly shaping our brand and forging strong customer bonds,” said company vice president Jose Luis Plasencia. “While we will deeply miss her presence, we are thrilled that she will remain with us as a consultant. We eagerly anticipate this new chapter in our collaboration and her journey.”

    “Working with the Plasencia family has been an incredible experience, filled with growth, learning, and cherished memories,” Luis said. “They welcomed me as part of their family, and I am deeply grateful for the opportunities. While I am stepping away from my full-time role, I am overjoyed to continue my connection with them as a consultant. The Plasencia’s have a special place in my heart, and I look forward to contributing to their legacy in this new capacity.”

  • Dutch Propose Raising Nicotine Purchasing Age to 21

    Dutch Propose Raising Nicotine Purchasing Age to 21

    The minimum age for purchasing cigarettes, vapes, and other nicotine products in the Netherlands could increase from 18 to 21, according to a new proposal published by the Ministry of Health on Wednesday (March 12). The Cabinet is also considering the introduction of higher fines for those caught selling vapes illegally and would include measures to reduce the number of places where vapes can be purchased and to require them to be sold in plain packaging.

    According to NL Times, the announcement comes as the Netherlands has seen an increase in the number of young people vaping in recent years. In 2023, almost a quarter of young people between 12 and 16 years old had tried vaping. “The presence of nicotine makes vapes highly addictive. This is not surprising: nicotine is the most addictive drug in existence after heroin and crack,” the ministry said, citing a report from health institute RIVM.

    According to the proposal, the €1,300 first-offense fine for selling vapes online would be increased substantially. Although flavored products are banned and it is illegal to sell tobacco products online, the market is flourishing.

    Vincent Karremans , the Dutch State Secretary for Youth, Prevention and Sport, announced the proposal as part of a larger plan to achieve a smoke-free and nicotine-free generation by 2040. He said the government will increase resources for law enforcement to crack down on the illegal vape trade and will launch a communication campaign in 2025 to educate parents about the dangers of vaping. Karremans wants to earmark €3 million for this purpose.

  • Cresco Labs Shows Record Cash Flow in FY24

    Cresco Labs Shows Record Cash Flow in FY24

    Cresco Labs Inc. today (March 13) released its financial and operating results for the fourth quarter and FY24. For the year, Cresco Labs reported:

    • Revenue of $724 million, record operating cash flow of $132 million, and free cash flowof $114 million.
    • Gross profit of $364 million. Adjusted gross profit of $374 million; and an adjusted gross margin of 52% of revenue, a 270 bps improvement year-over-year.
    • SG&A of $221 million. Reduced Adjusted SG&A by 12% year-over-year to $212 million, or 29% of revenue.
    • Net loss of $60 million which includes one-time, non-cash charges of $66 million, related to the company’s expected benefits from its updated 280E position, as initially described in the second quarter of 2024.
    • Adjusted EBITDA1 of $200 million, up 15% year-over-year; and Adjusted EBITDA margin1 of 28%, a nearly 510 bps improvement year-over-year.

    “In 2024, the team executed with discipline—streamlining operations, prioritizing profitability, and generating record free cash flow,” said Charlie Bachtell, Cresco Labs CEO and co-founder. “With $132 million in operating cash flow, a leading brand position in our core markets, and retail productivity that outperforms the industry, our foundation is stronger than ever. In 2025, we’re extending our focus to strategically deploy capital to create growth and maximize returns for the years ahead. It’s a straightforward approach: execute at the highest level, generate cash, reinvest in high-ROI opportunities, and repeat.

    “Kentucky is our first of these new market expansions—a strategic addition backed by clear regulations. As one of only two Tier 3 cultivators, we have up to 25,000 square feet of canopy, representing more than 20% of the state’s total allocation. This allows us to scale efficiently, serve patients quickly, and reinvest in our operations—just as we have in Illinois, Pennsylvania, and Ohio. Congratulations to the Cresco team on a phenomenal 2024 and Let’s Go in 2025!”