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Category: News This Week

  • Busy Day for BAT Stocks

    Busy Day for BAT Stocks

    British American Tobacco (BAT) executed a share buyback program January 27, purchasing 129,541 ordinary shares at an average price of £29.951908 per share. According to TipRanks, this move, authorized by shareholders, “is part of its broader strategy to enhance shareholder value by reducing the number of shares in circulation, which could potentially impact the company’s stock value and stakeholder interests.”

    Later in the day, the stock rallied to £31.50 on what proved to be an all-around great trading session for the stock market, with the FTSE 100 Index. According to MarketWatch, that price was a 52-week high for BAT, surpassing the £30.47 from January 24.

  • Hong Kong Proposes Public Vape Ban

    Hong Kong Proposes Public Vape Ban

    Hong Kong authorities have proposed a citywide ban on the use and possession of e-cigarette cartridges and flavored tobacco products in public places, according to the South China Morning Post. The public ban would be the first of two phases, with the second phase expanding to non-public spaces.

    The proposal comes after a heated public debate where the government touted 10 measures aimed at reducing the city’s 7.8% smoking rate.

    Several business leaders cautioned that bans would discourage visitors and businesspeople from coming to the city.

  • Washington: More Tax Hikes Proposed

    Washington: More Tax Hikes Proposed

    On January 20, the state of Washington saw two bills proposed, House Bill 1416 and House Bill 1417, that would further hike the state’s higher-than-average tobacco taxes. We reported that the two bills would add an additional 33 cents of taxes per pack of cigarettes (currently based at $4.035 before any local sales taxes), and that “existing taxes on most vape juices, cigars, and other products would be raised.”

    Writing for Halfwheel, Patrick Lagreid dug into the actual increases on several nicotinereu products. Washington has a tax rate of 95% of the taxable sales price, maintaining a cap on the maximum tax that can be charged. Lagreid said the cap on premium cigars would be raised from 65 cents to 72 cents.

    “The bill also raises the tax on vapor products from 27 cents to 30 cents per milliliter of solution, while what are described as ‘accessible containers of solution’ will go from nine cents to 10 cents per milliliter, regardless of whether or not they contain nicotine,” he wrote. “Moist snuff would also see an increase, going from $2.526 to $2.776 per package of 1.2 ounces or less, though there is a provision that the tax must be at least that amount or 83.5% of the cigarette tax.”

    The bills were proposed by Rep. Kristine Reeves and referred to the House Committee on Finance for initial rounds of debate. If passed as written, the increases would go into effect October 1.

  • New Administration Withdraws FDA’s Menthol Ban Bid

    New Administration Withdraws FDA’s Menthol Ban Bid

    The Trump administration issued a setback to health regulators and anti-tobacco activists as it withdrew a plan to ban menthol cigarettes in the United States.

    In April 2022, the U.S. Food and Drug Administration (FDA) proposed to ban the sale of flavored cigars and menthol cigarettes after several health advocacy groups said they were highly addictive and attractive to young people. A January 21, 2025, filing by the Office of Information and Regulatory Affairs shows that the proposal has now been “withdrawn.”

    The FDA sent its final version of the regulation to the White House in October 2023, however, the administration allowed dozens of meetings with groups opposing the rule, including civil rights advocates, business owners, and law enforcement officials, according to Reuters, with the government missing deadlines in December 2023 and March 2024 to issue a final rule on the ban.

    An estimated 18.5 million smokers consume menthol cigarettes, comprising one-third of the U.S. market share, meaning a ban would have cost billions of dollars in annual revenue for the industry.

    With news of the proposal withdrawal, Tobacco companies saw their stocks rise today, with British American Tobacco gaining 1.3% and both Altria Group and Philip Morris International gaining 1%. The market’s response suggests investor relief at the removal of a significant regulatory risk for these companies.

  • Wall Street Likes Big Tobacco

    Wall Street Likes Big Tobacco

    According to Seeking Alpha, a leading financial research firm, U.S.-listed tobacco companies had a successful year of returns in 2024. “The dividend aristocrats Philip Morris, British American Tobacco, and Altria Group rose between 24% and 27.9% last year, compared to S&P 500’s 23.3% gain during that period,” Seeking Alpha wrote.

    Seeking Alpha’s analysts and Wall Street opinions think 2025 will be equally positive for Big Tobacco.

    “On British American Tobacco, the bullishness of SA analysts crossed with one Sell, two Holds, and a Buy recommendation of sell-side analysts. Similarly, Altria Group got a resounding Buy from Seeking Alpha analysts compared to a wide spectrum of opinions on Wall Street.

  • Washington State Wants High Taxes Higher

    Washington State Wants High Taxes Higher

    The state of Washington saw two bills proposed this week that would further hike the state’s higher-than-average tobacco taxes. Rep. Kristine Reeves proposed House Bill 1416 and House Bill 1417 with a number of other Democrat cosponsors. Both measures impose additional taxes on those already in place for tobacco products. 

    HB 1416 imposes a new $0.015 per cigarette tax, about 30 cents for a standard pack. It also raises existing taxes on most vape juices, cigars, and other products. HB 1417 imposes a new $0.0015 per cigarette “embodied carbon tax,” about 3 cents a pack.

    These proposals are in addition to the taxes already in place, including $3.025 tax per pack from the state, $1.01 per pack federal, and other local sales taxes. Reeves also wants to ban flavored tobacco products.

    Because Washington has some of the nation’s highest tax rates on nicotine products, it, according to the Tax Foundation, also has some of the highest smuggling and counterfeit rates, costing the state an estimated $178.8 million in revenue. 

    According to HB 1416, revenue from vape products would be split evenly between cancer research and public health services, however, revenue from other taxed products would go directly to the general fund. The revenue from HB 1417 would go to the general fund and would be earmarked to “counteract carbon emissions,” but the bill does not explain how that would work. Coincidentally, both proposals come as the state anticipates a revenue shortfall between $10 billion and $16 billion over the next four years.

  • England: Half a Million Fake Cigarettes Seized

    England: Half a Million Fake Cigarettes Seized

    The Hull (England) City Council announced that last week it seized more than 500,000 counterfeit cigarettes and vapor products from a property on Anlaby Road.

    The council’s trading standards team and Humberside Police said it seized “266 pounds (121kg) of cigarettes and 500 vapes hidden in stacks of cardboard boxes.”

    “Tobacco like this is about more than just cheap cigarettes or vapes,” Charles Quinn, city councilor said. “Products aren’t subject to any safety regulations – they could pose a significant fire risk and there’s simply no way to know what you’re actually buying.

    “Research also shows they fund organized crime. There’s simply no place for these counterfeit products in our communities”.

  • U.K. Nearing Generational Ban

    U.K. Nearing Generational Ban

    The United Kingdom is poised to implement a generational tobacco ban this year, which would make it the only nation in the world to have such legislation at the national level. The proposal would make it illegal for anyone born after January 1, 2009 to buy tobacco products.

    The Tobacco and Vapes Bill was originally introduced in 2023 but made little progress until it was revived in November 2024. In the first vote in Parliament’s House of Commons, members of Parliament voted 415 to 47 in favor of the bill, which currently sits in the Commons committee stage and is set to be voted on again in the House of Commons later this month. Additional committee sittings are scheduled until then, with the intent of concluding the proceedings by January 30. The bill would then return to the House of Commons, and with a favorable vote would move to the House of Lords.

    As this proposal was introduced by the Conservative Party and later reintroduced by the Labour Party, there is little political resistance to stop it. There is fleeting hope that some of the language will change down the road, but as for now, the wording is a generic, wide-ranging categorization of tobacco products, which lumps all products containing nicotine together, including cigars.

    “The big problem for us is that, from our view, this has been such an undemocratic, uninformed piece of legislation,” said Eddie Sahakian, who runs London’s renowned Davidoff cigar store. “We would have understood if the normal forms of consultation had taken place, if all stakeholders were consulted and opinions were taken.

    “Our preferred outcome here is that there is a carve-out for handmade, premium cigars.”

    Writing for Cigar Aficionado, Garrett Rutledge said, “The next month will be critical. Every possibility theoretically remains on the table, although all signs continue to strongly point to the ban proposal becoming law this year.

    “If a nation like the United Kingdom were to implement such a law, it’s a near certainty that many others around the world would soon attempt to follow suit. New Zealand kicked things off in 2023, despite the legislation eventually being repealed. And recently, state and local governing bodies in the United States have begun proposing, and implementing, their own generational bans. Given the continued trend, it appears this is only just the beginning.”

  • Consilium Sciences Announces Rebrand

    Consilium Sciences Announces Rebrand

    Consilium Sciences, a leader in data-driven solutions for tobacco harm reduction, has announced an exciting milestone in its journey. Beginning February 1, 2025, the organization will operate under the name Sapphire Sciences, a move that reflects its expanded capabilities and long-term commitment to advancing public health.

    The new name, “Sapphire,” is a nod to “Appropriate for the Protection of Public Health” (APPH), which emphasizes Sapphire Sciences’ dedication to delivering science-driven insights and innovative solutions that support the development of safer alternatives in the tobacco and nicotine space.

    In response to evolving industry needs, Sapphire Sciences has broadened its service offerings, ensuring comprehensive support for clients navigating complex regulatory and scientific landscapes. Key areas of expertise include regulatory affairs, toxicology and chemistry, comprehensive product development, literature review and data science, and real-world data (RWD) and real-world evidence (RWE).

    President and CEO Catherine Vick emphasized the company’s continued focus on scientific integrity and client collaboration. “This rebranding reflects our commitment to delivering reliable, impactful solutions that support innovation in tobacco harm reduction and public health,” said Vick.

  • Greece Cracking Down on Sales to Minors

    Greece Cracking Down on Sales to Minors

    The Ministry of Health in Greece is introducing stricter regulations on alcohol sales to minors, as well as tighter controls on the sale and use of new tobacco and nicotine-based products, to include cigarettes, e-cigarettes, vaping substances, and synthetic nicotine items.

    A draft of the bill is being reviewed by the government today, in the wake of what is being called a serious and worrying trend of alcohol abuse by minors. The legal overhaul aims to protect minors from all harmful substances and improve enforcement mechanisms. 

    Many of the regulation changes center around where products can be sold, reinforced age verification at points of sale, and harsher penalties for retailers selling to minors.

    Further, the bill creates a new department within the National Public Health Organization specifically to monitor and enforce the revised laws on these substances.