Category: News This Week

  • Habanos Celebrates 30th Anniversary

    Habanos Celebrates 30th Anniversary

    Habanos of Cuba celebrates its 30th anniversary this month. Founded Sept. 14, 1994, the company has established itself as a benchmark in the worldwide promotion and sales of Habanos, which are considered by many to be the best handmade cigars.

    With a presence in over 130 territories across five continents, Habanos boasts a portfolio of 27 premium cigars, including iconic names such as Cohiba, Montecristo and Partagas. Since its creation, the company has tripled its consolidated turnover.

    Every year since 1999, the company’s Habano Festival, attracts distributors, aficionados and celebrities from around the world. The event has evolved into a key platform for presenting new products, exchanging ideas and celebrating activities and experiences related to the Habano culture.

    Meanwhile, the La Casa del Habano franchise network has expanded to more than 155 boutiques in over 60 countries.

    “Over the past 30 years, we have traveled a path filled with tradition, passion and dedication, bringing the Habano to over 130 territories and solidifying our position as leaders in the premium tobacco industry. All of this has allowed us to reach a record revenue figure of $721 million in 2024,” wrote Habanos Copresidents Maritza Carrillo Gonzalez and Luis Sanchez-Harguindey in a joint statement.

    “However, beyond the numbers and achievements, what truly defines us are the relationships we have built. Each satisfied customer represents a shared success, and we are grateful for their loyalty and support over the years. Today, we celebrate the past, but we also look to the future with the same entrepreneurial spirit that has guided us here.”

  • Tucker Carlson to Launch Nicotine Pouch

    Tucker Carlson to Launch Nicotine Pouch

    Photo: Andrii

    Tucker Carlson plans to introduce a nicotine-pouch brand called Alp in November, reports The Wall Street Journal.

    The conservative U.S. political commentator said he decided to enter the tobacco business because of the way Zyn manufacturer Philip Morris International responded to an off-color remark he made in 2023 about America’s bestselling nicotine pouch.

    Until recently, Carlson styled himself as an unofficial spokesman for Zyn. He talked up the brand on frequent podcast appearances. “The truth is, Zyn is a powerful work enhancer and also a male enhancer, if you know what I mean,” Carlson told comedian Theo Von in an interview last October.

    Carlson’s representatives then pitched PMI on forming a partnership with the brand. The multinational declined, citing Carlson’s commentary.

    “While we understand that these may be Mr. Carlson’s views or made in jest, these statements lack a scientific foundation,” the tobacco company wrote. “Given Mr. Carlson’s popularity and reach, these statements could promote a misunderstanding and misuse of our products.”

    Carlson said the message enraged him.

    “Of course I wasn’t making a medical claim about their product. I was just joking,” he told The Wall Street Journal. “So I thought: ‘I’m going to launch my own product that’s not controlled by, you know, humorless, left-wing drones.’”

    Last month, a Turning Point Brands subsidiary filed a trademark application for the Alp brand name and its logo, which depicts a winking man in a cowboy hat. The company currently sells a moist nicotine pouch called Fre.

    Alp will come in three nicotine strengths—3 mg, 6 mg and 9 mg. Zyn in the U.S. is only available in 3 mg and 6 mg versions. Another key difference is that Alp pouches are moist while Zyn pouches are dry, like tiny tea bags, until they are tucked into the cheek, according to Carlson.

  • Italian Lawmakers Examine Tobacco Legislation

    Italian Lawmakers Examine Tobacco Legislation

    Photo: chrisdorney

    Italian lawmakers have started investigating the country’s taxation and concessionary system for the retail sale of tobacco and next-generation products, reports Sigmagazine.

    On Sept. 18, the Chamber of Deputies’ finance committee heard from three tobacconist organizations. The exchange will likely be followed by hearings of vapor industry representatives.

    This marks the first formal occasion where politicians acknowledge the nicotine sector, thus recognizing it as a legitimate interlocutor.

    Italy’s tobacco market has been in flux as traditional tobacco products, particularly cigarettes, have lost ground to next-generation products, which jumped from 4 percent to 18 percent of the market between 2019 and 2023.

    In response to the shifting sales trends and tax receipts, Italian lawmakers have adjusted the fiscal framework for smoking products. For example, during the 17th legislature, they extended excise duties to noncombustible tobacco products. E-liquids made from substances other than tobacco used in e-cigarettes were also subjected to taxes.

    In addition to analyzing the tax framework, the finance committee wants to assess whether the system is consistent with EU rules and gather insights into the illicit trade.

    According to the Italian Tobacconist Federation, the illegal market for smoking products and inhalable products is worth €1 billion ($1.11 billion), causing the state and tobacconists to miss out on income of €620 million and €120 million, respectively.

    The commission’s work must be completed by Dec. 31, 2024.

  • UK Urged to Tackle Illegal Vapes

    UK Urged to Tackle Illegal Vapes

    Photo: BAT

    The U.K. government should be cracking down on illegal vapes rather than introducing redundant policies on cigarettes, according to BAT Chief Corporate Officer Kingsley Wheaton.

    Wheaton made his comments in the context of the British government’s “generational tobacco ban.” The U.K.’s previous Conservative administration announced plans to create a smoke-free generation by banning the sales of cigarettes in the future to anyone who is currently aged 14 or under. The new Labour government is continuing with the policy and is also concerned about the prevalence of disposable vapes.

    Wheaton cited a BAT analysis showing that by the time the generational ban takes force, smoking rates will have already fallen below 5 percent in that age category.

    BAT is instead pushing for licensing for retailers selling vapes. With proper enforcement, licensing will help reduce the number of underage children getting their hands on e-cigarettes and level the playing field for all companies operating in the industry, according to the multinationals.

    “We need to move on to a more mature dialog with real solutions for the problems that are out there,” Wheaton was quoted as saying by Bloomberg.

  • Filtrona Expands Boreas Range

    Filtrona Expands Boreas Range

    Image: Filtrona

    Filtrona has expanded its Boreas range of filters for heated-tobacco products (HTP) with six new products. The new innovations will make their debut at the InterSupply trade show in Dortmund, Germany, Sept. 19–21, 2024.

    The new HTP filters include the Boreas Echo, which incorporates a heat protection design to deliver a pleasant user experience at an optimal temperature, and the Boreas Echo II, which enables a fuller experience in every puff with enhanced aerosol volume control.

    The Boreas Echo III features a proprietary triple Corinthian structure, designed to deliver a stable and steady temperature profile that ensures consistent performance comparable to leading products in the market. The Boreas Echo IV is made with a low-density paper bridge segment that is designed to optimize the balance between temperature and aerosol delivery.

    The new filters to be launched at InterSupply also include the Nimbus, which features a triple tube structure that delivers a balanced and consistent experience, and the Nimbus+, designed to enhance the generation of visible aerosol for a more intense user experience.

    “We are delighted to launch six new filters for the fast-growing HTP market at InterSupply. The Boreas range was well received by the industry when it was introduced in May this year,” said Filtrona CEO Robert Pye in a statement.

    “We have enhanced the Boreas range with new filter solutions that are innovatively designed to meet the unique requirements of almost any HTP application.”

  • Philippines Lowers Minimum Prices

    Philippines Lowers Minimum Prices

    Photo: Bowonpat

    The Philippines tax authority has lowered the floor prices for tobacco products, citing lower production costs, reports Business World.

    The floor price is the minimum price of products and is set by the Bureau of Internal Revenue (BIR), which considers production costs, excise tax and value-added tax in its calculations.

    Under Revenue Regulations No. 016-2024, the floor price of a pack of cigarettes was lowered to PHP78.58 ($1.41) from PHP114.60 last year. A ream of cigarettes now costs PHP785.80 compared with PHP1,146 previously.

    The floor price for heated-tobacco products was cut to PHP60.11 per pack from PHP120.40.

    A 2 mL pod of nicotine salt now has a floor price of PHP180.67, down from PHP200 a year earlier. The floor price of a 10 mL bottle was set at PHP679.12.

    A 10 mL bottle of classic nicotine, by contrast, now costs PHP181.72, up from the PHP179.20 set a year earlier, while the floor price of a 30 mL bottle was PHP263.73, down from PHP403.20 previously.

    Retailers selling below the floor price risk fines of up to PHP500,000 and up to six years’ imprisonment.

    “We are warning all e-marketplaces, online sellers, retail sellers, suppliers and distributors that are selling vapes, cigarettes and heated-tobacco products below the floor price … this is a criminal violation penalized by imprisonment of the seller,” said BIR Commissioner Romeo D. Lumagui Jr.

  • Senate Insists on Exceptions to Ad Ban

    Senate Insists on Exceptions to Ad Ban

    Photo: swisshippo

    The Swiss Senate is insisting on exceptions to nationwide restrictions on tobacco advertising poised to take force, reports Swissinfo.

    In a 2022 ballot, a majority of voters and most of the country’s cantons backed a proposal to ban all tobacco and e-cigarette advertising that may reach young people in Switzerland.

    Both chambers of Parliament are now debating how to implement the successful popular initiative.

    On Sept. 16, the Senate approved the bill by 28 votes to 12 with four abstentions. However, lawmakers stopped short of a comprehensive ban by maintaining exceptions for tobacco advertising in public places that are neither accessible nor visible to minors and for mobile sales staff in publicly accessible places.

    The ball is now back in the House of Representatives’ court.

  • JT Extends Vector Tender

    JT Extends Vector Tender

    Photo: Paul Brady

    Japan Tobacco has withdrawn and refiled its premerger notification and report form under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act) in connection with the JT Group’s pending acquisition of Vector Group.

    On Sept. 4, 2024, the JT Group commenced a cash tender offer to purchase all outstanding shares of common stock of Vector Group for $15 per share.

    JT withdrew and refiled its premerger notification and report form to provide the Federal Trade Commission with additional time for review. Following such refiling, the waiting period under the HSR Act will expire Oct. 3, 2024, at 11:59 p.m. Eastern Time.

    The acquisition is expected to be completed by the end of JT Group’s current fiscal year, ending Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions.

  • British American Tobacco Launches ‘Omni’

    British American Tobacco Launches ‘Omni’

    Photo: BAT

    BAT unveiled Omni during the company’s first-ever Transformation Forum in London.

    According to BAT, Omni is an evidence-based, accessible and dynamic resource that shows how science and innovation can combine to achieve a smokeless world.

    “Tobacco harm reduction—encouraging smokers who would otherwise continue to smoke to switch completely to less risky alternatives—is the fastest route to achieving a smokeless world,” said Kingsley Wheaton, BAT’s chief corporate officer, in a statement. “And we’re committed to working with others to make this a reality.

    “While we have history of humans smoking tobacco for more than 8,000 years, innovation has now delivered smokeless products with reduced risks compared to cigarettes. We stand on the threshold of a breakthrough science-backed change.”

    Omni brings together hundreds of independent scientific studies, BAT’s own research into its innovations and examples of tobacco harm reduction in action, such as Sweden, which according to BAT stands on the cusp of becoming the first country to go smokeless as defined by the World Health Organization.

    Omni also looks to answer some of the most challenging questions facing the industry and society, including: What is the risk of using smokeless products compared to smoking?; Are smokeless products a gateway to cigarette smoking?; What is the role of flavors in smokeless products and tobacco harm reduction?; What is nicotine?; and What is BAT doing to address underage access to tobacco and nicotine products?

    “With Omni, BAT is showcasing its world-class research,” said James Murphy, BAT’s director of research and science. “Omni means all, and we are committed to opening it up to all stakeholders in the THR policy discussion so that we can seize this exciting opportunity to build a smokeless world.

  • PMI Sells Vectura at a Loss

    PMI Sells Vectura at a Loss

    Photo: PMI

    Philip Morris International is selling Vectura to Molex Asia Holdings for £150 million ($198 million) cash upfront and potential deferred payments of up to £148 million—about a third of the price it paid for the company three years ago. Vectura will be operated by Molex’ Phillips Medisize unit.

    In 2021, PMI paid about $1.2 billion for the U.K. maker of asthma inhalers as part of its efforts to diversify into the pharmaceutical business.

    The deal attracted heavy criticism from anti-smoking campaigners who said the cigarette manufacturer should not benefit from a company that offers treatments of ailments caused or worsened by tobacco products.

    The fierce opposition played a roll in PMI’s decision to sell the unit at a loss. “Despite the investment and commitment to developing products and therapies vital to patients, unwarranted opposition to PMI’s transformation has impacted Vectura’s scientific engagement and commercial CDMO [contract developing and manufacturing organization] relationships.” PMI wrote in statement.

    “With its experience in pharmaceutical drug delivery devices and its global manufacturing footprint, Phillips Medisize is best placed to lead Vectura into the future—while releasing it from the unreasonable burden of external constraints and criticism related to our ownership,” said PMI CEO Jacek Olczak.

    Vectura is part of a “health and wellness” unit that also includes Fertin Pharma, the producer of a smoking-cessation aid, that PMI bought for about $820 million in 2021. Last year, PMI took a $680 million impairment charge on the unit after unsuccessful clinical trials and slower-than-expected development of other products.

    Selling Vectura will allow PMI to “rid itself of a financially struggling unit,” said Kenneth Shea, a Bloomberg Intelligence analyst. “But it also represents a strategic backpedal to the company’s once-bold ambition to serve the inhaled therapeutics medical market,” he added.