Andrew Gilchrist will join Imperial Brands’ board as a nonexecutive director effective March 1, 2023, according to a company press release.
Gilchrist, who was chief financial officer of Reynolds American Inc. until its acquisition by BAT in 2017, has two decades of operational and financial experience in the tobacco sector. At Reynolds, Gilchrist held a range of leadership positions, including chief information officer, chief commercial officer and business development director. Earlier in his career, he worked for BAT in marketing and planning roles.
Imperial Brands Chair Therese Esperdy said, “I am delighted to welcome Andrew to the board. As well as the combination of his commercial and financial experience across our industry, he has a proven track record of business development, strategic planning and business integration. These skills and capabilities will further strengthen the board’s effectiveness as we continue the transformation of Imperial Brands.”
Gilchrist will also join the audit committee and the people and governance committee effective March 1, 2023.
Tobacco smugglers fleeing customs agents have caused a minor diplomatic incident between Gibraltar and Spain, reports Reuters.
Gibraltar accused Spain of a “gross violation of British sovereignty” after two customs officials entered the territory during an anti-smuggling operation. Spanish media reported that the Spanish customs agents’ boat lost power while chasing the tobacco smugglers.
Gibraltar’s chief minister, Fabian Picardo, said the facts of the incident need to be investigated before diplomatic action is taken; rocks were reportedly thrown at the customs agents, and a video of the incident shows potential shots fired, but it is unclear who fired them.
Spain’s foreign ministry condemned the attack on the customs agents, who suffered “serious injuries” and said it “categorically rejects the terms” of the statement issued by Gibraltar “as well as the claims of alleged British sovereignty over the territory and waters of Gibraltar contained within it.”
Britain and Gibraltar are in the process of negotiating a treaty to settle Gibraltar’s post-Brexit status and decide how to police the border with Spain.
E-Liquid manufacturer Zinwi Bio-Tech is set to unveil its new logo at the Total Products Expo (TPE) in Las Vegas from Feb. 22 – 24. The company will also be highlighting 15 of its most popular e-liquid flavors for TPE attendees to experience.
Zinwi, a global integrated e-liquid solutions provider, upgraded its branding in December to better reflect the company’s dedication to providing high-quality products and the brand’s entry into a new development phase.
“In this new phase, Zinwi will place more emphasis on product research and development, and provide diversified products to meet the needs of global markets,” a Zinwi spokesperson told Tobacco Reporter. “Zinwi is committed to continuing to explore e-liquid technology, pursue innovation and provide cutting-edge integrated e-liquid solutions.”
Zinwi’s new logo resembles a drop of e-liquid oil, which alludes to the company’s unwavering commitment to product research and development. The Zinwi “Z” and oil design are integrated to symbolize the company’s dedication to continuous product research and development, according to a press release. The light blue color of the logo features Zinwi’s laboratories that conduct its scientific product research and development in the background.
Currently, new nicotine salt and glycerol alternatives are two major topics of research for Zinwi. The company’s product research and development team has produced a new nicotine salt that has distinct advantages compared with the traditional benzoic acid nicotine salt.
“This new innovation brings with it a significant reduction in the number of impurities released. Zinwi is also in the process of researching and developing glycerol alternatives,” the spokesperson said. “The research and development of glycerol alternatives is an effort to reduce the toxins released during atomization and to allow the products to be more environmentally friendly.”
The 15 e-liquid products Zinwi is set to showcase at TPE include five tobacco flavors and 10 non-tobacco flavors. They are Zinwi’s best-selling flavors and have been widely recognized by the company’s global client base. One of the flavors, Caramel Tobacco, has a distinctive caramel flavor along with a mild tobacco accent.
In order to allow the show attendees to experience the different flavors, Zinwi will provide disposable vaping devices pre-filled with the Zinwi e-liquids in the 15 flavor profiles. “Trade show attendees will be able to try out the different flavors in different devices with a variety of settings, enabling them to reach the optimal puff experience,” the spokesperson said.
Tobacco grower representatives in Zimbabwe are urging contractors to provide their members with sustainably produced wood rather than coal for leaf curing, according to an article in The Herald.
The compliance enforcement framework (CEF) agreement signed by tobacco buyers and the Tobacco Industry and Marketing Board requires contractors to fund tobacco growing inputs, such as fertilizer and curing fuel.
Under the CEF, a 1 hectare pack for small-scale production includes 500 kg of coal or its sustainable wood equivalent as curing fuel.
While most contractors are providing farmers with coal, grower representatives believe wood is more sustainable. “We think wood of an equivalent to the coal component would be better as less charges would be incurred by farmers in U.S. dollar terms,” said Tobacco Farmers Union Trust Vice President Edward Dune.
“Sustainable wood is the way forward as coal use is unsustainable and will likely be phased out in the near future if the current lobbying by environmentalists prevails,” echoed Rodney Ambrose, CEO of the Zimbabwe Tobacco Association.
The plan emphasizes sustainable production through reforestation programs, fuel-efficient curing facilities and the use of alternative energy sources for curing. It calls for research into the suitability as a fuel source of alternative tree species, such as giant bamboo.
One in eight youth aged 14 to 25 in French-speaking Switzerland is a frequent e-cigarette user, reports Le News.
A study by Unisante, which surveyed 1,362 young people, 59 percent said they had consumed e-cigarettes at least once and 12 percent said they used them frequently (more than 10 days over the past month). Of those that responded, 59 percent said they consume the products when out at night while 40 percent said they consume them at home. The survey showed that 63 percent of respondents preferred e-cigarettes because of the flavors while 40 percent cited lack of tobacco smell and 30 percent cited ease of use.
Disposables are the most popular choice for youth, and 49.4 percent of respondents said their parents knew they used the products. Half of respondents said they’d seen advertising for the products, and two-thirds were aware of the health risks and risk of addiction.
In Switzerland, 19 percent of those aged 15 to 24 smoked combustible cigarettes daily in 2017.
Elf Bar 600 products have been pulled from shelves in multiple U.K. stores after it was discovered that the products contained e-liquid volumes at levels at least 50 percent higher than what is legal, reports The Daily Mail (the article states the liquids were over nicotine limits, but there is no evidence of that. The UK limits nicotine strength to no more than 20mg/ml).
The company stated that it “inadvertently” broke the law and “wholeheartedly apologized.”
Experts described the situation as “deeply disturbing” and warned of risk to youth, among which the products are very popular.
Elf Bar, which launched in 2021, sells 2.5 million Elf Bar 600s in the U.K. every week, accounting for two in three of all disposable vapes sold.
The legal limit on e-liquid in vapes is 2 mL, but tests commissioned by the Mail on three flavors of Elf Bar 600s found volume levels between 3 mL and 3.2 mL.
Mark Oates, director of consumer advocacy group We Vape, said, “The Mail’s findings on Elf Bars are deeply worrying, and it is clear there have been failings on multiple levels.
“Not only are the levels of e-liquid too high, but checks to make sure these guidelines are adhered to either haven’t occurred or are insufficient. Anyone supplying vapes in the U.K. market should be following the legislation.
“It is incredibly frustrating when major players in this sector appear to behave in a way that damages the reputation of something as beneficial as vaping, and we expect the matter to be fully investigated by the Medicines and Healthcare products Regulatory Agency (MHRA).”
A new paper showed that over half of Americans would support a ban on the sale of all tobacco products, reports Vaping360.
The paper was published in the U.S. Centers for Disease Control and Prevention (CDC) journal Preventing Chronic Disease.
According to the results of a survey, detailed in the paper, 57.3 percent of respondents strongly or somewhat supported prohibiting the sale of all tobacco products while 62.3 percent of respondents supported a menthol cigarette ban.
The survey did not provide a definition of “tobacco products,” so it is unclear how many respondents believed e-cigarettes and nicotine pouches were included in the category.
Survey data was compiled from a spring 2021 web panel of 6,455 people ages 18 and older, weighted to match Census Bureau proportions for demographic variables like sex, age, income, race, education and region. Four scientists from the CDC Office on Smoking and Health and one scientist from the Oak Ridge Institute for Science and Education compiled and analyzed the data.
ITC reported a profit of INR50.31 billion ($614.52 billion) in the October–December quarter, up from INR40.56 billion in the comparable 2021 period, reports Reuters. The company attributed the increase to strong cigarette sales and steady demand for its packaged foods.
ITC’s overall revenue from operations rose about 3 percent to 172.65 billion rupees, of which more than 40 percent came from its cigarette business.
Revenue in that business, which includes the Classic and Gold Flake brands, jumped nearly 17 percent to 72.88 billion rupees.
ITC said its cigarette business “continues to reinforce market standing by fortifying the portfolio through innovation, democratizing premiumization across segments and enhancing product availability backed by superior on-ground execution.”
It also praised the government’s actions against illegal cigarettes sales. “Stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continues to enable volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector,” the company wrote in a statement.
“The company continues to engage with policymakers for a framework of equitable, nondiscriminatory, pragmatic, evidence-based regulations and taxation policies that disincentivize illicit trade in cigarettes, balance the economic imperatives of the country and tobacco control objectives while cognizing for the unique tobacco consumption pattern in India.”
This week, the government raised the National Calamity Contingent Duty on cigarettes by 16 percent, which some analysts said could mean a “modest” 1.5 percent increase in tax. Others expect ITC to counter with price hikes.
Kaival Brands Innovations Group reported revenues of $3 million for the fourth quarter that ended Oct. 31, 2022, compared with revenues of $100,000 million for the prior fourth fiscal quarter. Revenues for the full fiscal year were approximately $12.8 million, down from $58.8 million for fiscal year 2021.
Kaival attributed the full-year decrease to the U.S. Food and Drug Administration’s marketing denial orders (later overturned), which temporarily prevented the company from selling its products, and to increased competition in general, which Kaival suspects resulted from lax enforcement by federal and state authorities against subpar and low-priced vaping products that continued to enter the market illegally without FDA authorization.
“Fiscal 2022 was an exceptionally challenging year for us, primarily due to regulatory action by the FDA that was ultimately overturned in August,” said Kaival Brands President and Chief Operating Officer Eric Mosser in a statement.
“For a portion of fiscal 2022, we were prohibited from selling our flavored Bidi Sticks, and our 2022 revenues reflect the significant extended impact of this. The good news is that this impediment is behind us. Moreover, despite the challenges, we accomplished several important milestones during the year, which we believe has laid the foundation for renewed growth and progress in 2023, including expanding existing sales channel relationships and initiating significant new ones. We expect and hope that the FDA will continue to pull bad actors from the marketplace, paving the way for companies like ours to provide our products to adult smokers deserving of premium e-cigarette product and experience.”
The Indonesian affiliate of Oversea-Chinese Banking Corp. has accused a billionaire owner of Gudang Garam of fraud, according to Bloomberg.
PT Bank OCBC NISP reportedly filed a police report against Susilo Wonowidjojo, an owner and president director of Gudang Garam, concerning some INR232 billion ($15.5 million) in troubled loans.
The bank disbursed the loan in 2016 to a wig-making company owned by Wonowidjojo’s family, according to the lender’s lawyer. The case involves a total of INR1 trillion of funds when including loans from other lenders, he said.
Gudang Garam shares fell 5.7 percent Jan. 3 in their biggest drop since Jan. 5.
