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Category: News This Week

  • Opinion: Zimbabwe’s Tobacco Chain Needs to Come Together

    Opinion: Zimbabwe’s Tobacco Chain Needs to Come Together

    Zimbabwe’s tobacco marketing 2025 season opened last week with the first bale selling for $4.65 per kg. That price was predictably down from last year’s $4.92 as the El Nino drought created a shortage in the tobacco market. Last year’s output was 235 million kilograms, down from 2023’s record 296 million kg. For 2025, projections are in the 280 million kg region, however, more plantings and favorable weather keep the National Development Strategy’s ultimate 300 million kg goal a possibility.

    While growers are doing their part in the system, Obert Chifamba wrote in his opinion piece for The Herald that more needs to be done as a nation to make the cash crop profitable for the people doing the work.   

    “Just two seasons ago [we were] close to the target of 300 million kg,” Chifamba wrote, “which means production-wise, we have achieved our intentions, hence the need to identify and address the issues now standing between the country and its target.

    “Delays in disbursing the $60 million tobacco revolving fund meant to localize the crop’s funding and support growers have not made the situation any better, with the Reserve Bank of Zimbabwe said to be working on the modalities of disbursing it. Local funding should take care of 70% of the cost of production. This is also one of the strategies the government is pushing to effectively implement to ensure the country stops relying on foreign capital for the crop, which will see the funders taking between 80 and 90% of the money generated from tobacco out of the country leaving producers with very little.”

    Chifamba also points out that 95% of the tobacco produced gets exported out of the country raw, allowing countries that import and process it to reap the majority of the profits, and that local growers are often taken advantage of by foreign sponsors with “notorious price ceilings” and incomplete purchase contracts. 

    “It is critical for the tobacco industry to do some self-introspection and see where the wheels are always coming off,” Chifamba wrote. “Maybe it will take the intervention of the government or some independent observer to pinpoint where the tobacco juggernaut needs revitalization to function more fluidly and profitably for all parties involved.”

  • Pakistani Growers Getting Squeezed as Cultivation Begins

    Pakistani Growers Getting Squeezed as Cultivation Begins

    Growers in Pakistan started cultivating Virginia and white Patta tobacco last week, but news for them was not all good as purchasing companies have again slashed their quota. The quota was 85.5 million kg in 2023, 77.3 million in 2024, and now reportedly 74.8 million kg for this year. Making the matter worse, according to Liaqat Yousafzai, central president of Tobacco Growers Association Pakistan, is that purchasing companies again didn’t notify growers of their intentions, causing farmers to spend time and money growing surplus crop that will be thrown away.

    “The big issue is that the companies’ demands are decreasing while the tobacco production is increasing,” Yousafzai said. “It is the only cash crop with which the full-year expenditures of the farmers are linked. The companies have reduced their quota for the current year like 2024 without informing the growers in advance.”

    However, when contacted by reporters for The Dawn newspaper, officials for purchasing companies said they had made clear previously that the farmers who failed to execute agreements with the buyers of their choice should give up growing tobacco.

  • Philippines Looks to Tighten Vape Import Laws 

    Philippines Looks to Tighten Vape Import Laws 

    Potential new requirements have been drafted in an administrative order to tighten measures against the illegal trade of vape products, promote consumer safety, and streamline import procedures in the Philippines. Today (March 10), the Department of Trade and Industry asked the public and stakeholders to help provide insights for its amended documentary requirements in the issuance of a Statement of Confirmation (SOC) for product importers. The SOC is a mandatory certification that verifies the legitimacy and compliance of imported vape products and tobacco items.

    In the proposed order, importers would need to submit an expanded set of documents consisting of a packing list, commercial invoice, bill of lading/airway bill, production batch details, and a valid Philippine Standard License. Additional compliance requirements include a P150,000 ($2,550) surety bond, a valid certificate of registration from the Bureau of Customs, proof of billing and ownership, or lease of warehouse space, and an excise tax return with a Bureau of Internal Revenue stamp.

  • Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam is reviewing new tax policies for tobacco products, with experts recommending a gradual tax increase every two years instead of higher annual hikes. The Vietnam Tax Advisory Association (VTCA) has raised concerns that sharp, sudden tax hikes may backfire, leading to higher illicit cigarette trade and reduced tax revenue.

    According to the draft law, the government plans to impose a hybrid tax system on tobacco products, combining the current 75% ad valorem tax with a specific absolute tax increase on each pack of cigarettes. The VTCA submitted its recommendations for two proposed scenarios:

    The first scenario suggests an annual increase of VND 2,000 ($0.08) per pack starting in 2026, leading to a total tax hike of VND 10,000 ($0.40) per pack by 2030.

    The second scenario proposes a VND 5,000 ($0.20) increase in 2026, followed by an additional VND 1,000 ($0.04) increase per year from 2027 to 2029, also culminating in a total increase of VND 10,000 ($0.40) per pack by 2030.

    VTCA has urged policymakers to be cautious, citing examples from other countries where abrupt tax increases led to unintended consequences, mainly that smoking rates didn’t drop as consumers turned to cheaper illicit products.

    If this proposal is not accepted, VTCA has recommended that lawmakers adopt the first scenario, which calls for an annual increase of VND 2,000 ($0.08) per pack starting in 2026, reaching VND 10,000 ($0.40) by 2030.

  • Canadian Tobacco Settlement a Step Closer to Complete

    Canadian Tobacco Settlement a Step Closer to Complete

    After years of mediation to resolve long-pending tobacco product-related litigation in Canada, the court-appointed Mediator’s and Monitor’s Plan of Compromise and Arrangement was today (March 7) sanctioned by the Ontario Superior Court of Justice in the ongoing proceedings under the Companies’ Creditors Arrangement Act (CCAA). The sanctioning was a significant step in finalizing the $22.7 billion settlement agreement with Imperial Tobacco Canada (a BAT subsidiary), JTI-Macdonald Corp., and Rothmans, Benson & Hedges (a PMI subsidiary). The settlement has been in negotiations since March 2019.

    Following a judicial hearing on the proposed plan, the three companies reached a consensual resolution of all outstanding objections to it. The plan will resolve all Canadian tobacco litigation and provide a full and comprehensive release to the companies.

    “We are pleased that the Court has sanctioned the Mediator’s and Monitor’s Plan of Compromise and Arrangement, a critical milestone in the CCAA process, Imperial Tobacco Canada wrote in a statement. “We look forward to the successful implementation of this plan, which maximizes value for claimants, resolves outstanding tobacco litigation, and allows us to emerge from CCAA protection. While there are still some steps that must be taken to implement the settlement, Imperial Tobacco Canada is committed to continue working with the relevant parties to complete this process as quickly as possible for the benefit of all stakeholders.”

  • 3D Bio Traps Tobacco Pests Like a Spider

    3D Bio Traps Tobacco Pests Like a Spider

    3D BioSciences announced that it has been recognized as a “World’s Greatest Company” and will be featured on the Bloomberg Financial Channel’s show on March 8 and 15. The interest comes as the company’s “revolutionary approach to pest management” gains more attention. Its 3DIPNS technology physically immobilizes insects without harming the crop, people, animals, or the environment.

    “The 3DIPNS technology in our products forms an artificial spider web over the body of the insect, trapping it,” CEO Frank Jusich said. “There is nothing else like it available for pest control.”

    Approved for use on tobacco, the product is used widely in South America under the brand name Siltac and the company says growers have reported good efficacy with no phytotoxicity issue. Since 2022, the company has been selling the technology under the Stik-Kote and Pest-Kote brands in the United States. Jusich said most of the clients have used the products in greenhouses, nurseries, and specialty agriculture like berries and tree fruits, however, the company has recently “began focusing on other crops like tobacco and thus far those farmers who have tried it have used it again.”

    World’s Greatest TV show has been airing for 19 years, featuring behind-the-scenes looks at companies such as Coca-Cola, Crest, P&G, NASCAR, and more.

  • Zimbabwe’s Tobacco Market Opens

    Zimbabwe’s Tobacco Market Opens

    Zimbabwe’s 2025 tobacco marketing season opened this week (March 5) with stakeholders upbeat about increased output due to favorable weather, contrasting to last year’s El Nino-induced drought.

    “We are expecting a bigger crop, much bigger than last year, over 280 million kg, and I think it will sell well,” said Patrick Devenish, chairman of the industry regulator Tobacco Industry and Marketing Board.

    Last year, Zimbabwe produced more than 240 million kg worth $1.4 billion in export earnings. China is the largest importer of Zimbabwe’s tobacco and is expected to have high demand for its top-quality leaf this year. 

  • Hong Kong Officials Seize $3.8M in Illicit Products

    Hong Kong Officials Seize $3.8M in Illicit Products

    Today (March 7), Hong Kong customs officers seized more than 6 million illicit cigarettes and heated tobacco products worth more than HK$29 million ($3.8 million) in two separate operations.

    In one operation, two men were arrested with 6 million cigarettes that are relatively unpopular in the area, stored in a truck and warehouse.

    “It is believed that the products would later be exported to other countries,” said Chan Sing-lung, a senior investigator of Customs’ Revenue Crimes Investigation Bureau. “But we do not rule out the possibility that some might get into the local illicit cigarette market for sale.”

    Earlier in the morning, a mainland man was arrested with 90,000 illegal cigarettes and 110,000 illicit heated tobacco products. Another 140,000 duty-not-paid cigarettes from Japan and alternative smoking products were found in his hotel room, together with a large number of empty bags for Japanese duty-free goods.

    Officials said the contraband was part of a larger smuggling operation from Japan.

    “Our investigation shows the group took advantage of air passengers to bring illicit tobacco products into the city, store them in hotel rooms and then distribute them to customers,” said Wong Wing-yuen, a senior investigator of the Customs and Excise Department.

    In the past half month, 13 men and eight women were arrested, mostly mainland tourists traveling from Japan. They were involved in 20 cases of 600,000 untaxed cigarettes and 240,000 alternative tobacco products, with a total market value of HK$4 million ($520,000).

  • Scandinavian Sales Up, Profits Down

    Scandinavian Sales Up, Profits Down

    Scandinavian Tobacco Group (STG) released its 2024 annual report today, reporting a sales gain of 5.4%, while net profits were down by more than 20%. One of the biggest cigar companies in the world, it saw a 6% sales increase for the year to 9.2 billion Danish kroner ($1.3 billion), compared to 8.7 billion kroner in 2023. Net income, however, dropped for the second straight year to 940 million kroner ($136 million) from 1.2 billion kroner in 2023.

    Last year “was another challenging year with a volatile business environment,” wrote chief executive officer Niels Frederiksen and chairman Henrik Brandt. “The global market for handmade cigars remains dominated by U.S. consumption.” 

    Handmade cigars accounted for 36% of STG’s 2024 revenues, while machine-made cigars and smoking tobacco were 48%.

  • PMI Retains European Vape Patent

    PMI Retains European Vape Patent

    European patent officials tossed a challenge from a British American Tobacco subsidiary allowing Philip Morris to retain its patent for a type of power supply for electronic vapes.

    The patent from PMI primarily describes a power supply system for an e-vaping device, including a sensor and a sensor holder designed to regulate airflow and house a power source. Nicoventures claimed the patent was not new because it used similar features in three older patents for its “Vuse Solo.” The BAT side argued that there were several features in the older patents that effectively served as sensor holders similar to the PMI design.

    In a Feb. 20 decision that was published yesterday (March 5), the appellate board at the European Patent Office upheld an earlier decision dismissing Nicoventures’ opposition because Philip Morris’ power supply design contains a unique structure.

    “The board concurs with the respondent’s arguments [that] the structure of the e-vaping device in [the older inventions] and the patent are not identical,” the Technical Board of Appeal said.

    PMI further argued that Nicoventures failed to prove that Vuse Solo “was available to the public before it filed its own patent application, therefore Nicoventures cannot argue that its design is not new,” Law360 wrote.