Category: News This Week

  • FITA Wants More Engagement

    FITA Wants More Engagement

    Image: Aerial Mike

    The Fair-Trade Independent Tobacco Association (FITA) chairperson, Sinenhlanhla Mnguni, has expressed that the organization would like to see more government engagement with manufacturers before policy amendments are made. This follows news of the Control of Tobacco Products and Electronic Delivery Systems Bill of 2018 being submitted to Parliament by the Cabinet, according to The South African.

    The bill proposes 100 percent smoke-free indoor areas and designated outdoor smoking areas as well as cigarette packaging changes. The FITA represents 80 percent of cigarette manufacturers in South Africa, and Mnguni stated that the proposed changes will lead to fiscal challenges for FITA members and the whole of the tobacco industry.

    “FITA and its members hope and trust that these measures will be introduced after full consultation with all the role players in the industry and not just those big companies that seem to hold much sway over certain government officials,” said Mnguni.

    “We are of the opinion that communication between our industry and government and its institutions continues to be monopolized, dominated and controlled by multinational cigarette manufacturers,” Mnguni said.

    “There is still a lot of noncompliance in the tobacco industry along the value chain, particularly following the five-month-long tobacco ban, and we hope that government will employ greater resources in future to protect the legitimate industry and to ensure that issues such as the rampant smuggling of cigarettes, which robs our fiscus of billions, are eradicated.”

  • UPM Raflatac and Logopak Collaborate

    UPM Raflatac and Logopak Collaborate

    Image: thodonal

    The label manufacturer UPM Raflatac and the industrial labeling and identification solutions provider Logopak have agreed on a collaboration, which provides the first robust linerless solution in print and apply labeling.

    With linerless labeling, omitting the label liner significantly increases the running length and capacity of the label rolls, saves costs and benefits the environment by reducing the carbon dioxide footprint in production and logistics, according to a joint press release. As a first step, the collaboration will improve the automatic labeling of secondary packaging.

    The benefits of the collaboration for customers are realized through the compatibility between Logopak’s linerless labeling technology and UPM Raflatac’s Linerless Opticut label material.

    “We have been determined to develop linerless labeling to new heights to drive both sustainability and efficiency. By joining the forces with Logopak, we can accelerate these advancements and offer first-class solutions also in the field of automated labeling,” said Ville Pollari, business segment director of paper laminates EMEIA for UPM Raflatac.

    “Our vision is to make industrial labeling consistently sustainable in order to improve the eco-balance in an efficient way. By close cooperation with UPM Raflatac, we achieve a perfect interaction in the field of linerless labeling technology, which enables us to offer complete solutions for our customers, from machinery and software until consumables. This underlines our mission to make business ‘Faster. Safer. Greener,’” says Patrick Petersen-Lund, product manager for Logopak.

  • Cuba: Tobacco Fields Destroyed in Hurricane

    Cuba: Tobacco Fields Destroyed in Hurricane

    Image: ronniechua

    Cuba faced power outages across the entire island as well as the destruction of some of the country’s most important tobacco farms when Hurricane Ian hit the island’s western tip on Tuesday, reports AP.

    Energy has been restored to three regions, and the Energy and Mines Ministry is working to get others back online. As of Wednesday morning, Havana, the country’s capital, was still without power.

    Hurricane Ian made landfall in Cuba as a Category 3 hurricane, devastating Pinar del Rio province, where much of the tobacco used for Cuban cigars is grown.

    Tens of thousands of people were evacuated, and others fled the area ahead of the arrival of Ian. So far, no fatalities have been reported.

    Ian’s winds damaged one of Cuba’s most prestigious tobacco farms, Finca Robaina. “It was apocalyptic, a real disaster,” said Hirochi Robaina, owner of the farm.

    Cuban President Miguel Diaz-Canel visited the affected region, telling the population, “Although the first impact is very painful, there’s nothing to do but overcome the adversity.”

  • China: Flavored Vape Ban Takes Effect

    China: Flavored Vape Ban Takes Effect

    Image: Arcady

    China’s ban on flavored vapor products takes effect on Oct. 1 along with other new vaping product standards that were decided on earlier this year, reports Vaping360.

    In November 2021, Chinese law was amended to bring the vapor industry under control of the State Tobacco Monopoly Administration (STMA), which regulates China’s tobacco products.

    Vapers are rushing to buy and hoard flavored vapor products before the ban takes effect on Saturday, according to Vaping360. It is not clear yet if the ban will create a large black market in the country; China is known to punish illicit sellers harshly.

    Products meant for export will not have to meet Chinese standards unless the destination country does not have its own specific standards.

    China’s new rules also require domestic e-cigarette manufacturers and traders to obtain a license before operating their business, according to The Global Times.

    E-cigarettes cannot be sold to customers under 18, and the sale points cannot be near schools or kindergartens. Warning signs must also be placed at the e-cigarette sale points, and self-service sales are banned.

    Manufacturers, wholesalers and retailers of e-cigarettes, vaporizers and e-liquid are required to conduct their business on specific platforms that are subject to STMA supervision.

    The rules also forbid the advertising of e-cigarettes in the mass media or in public places.

    The iiMedia Research Institute expects China’s e-cigarette market to be worth RMB25.52 billion ($3.57 billion) by the end of 2022 and RMB45.43 billion by the end of 2023.

  • Fire Destroys Dominican Cigar Factories

    Fire Destroys Dominican Cigar Factories

    Photo: Artem

    A large fire broke out on Sept. 26 in Tamboril, Dominican Republic, destroying the Tabacalera William Ventura and Intercigar factories, reports Halfwheel.

    Tabacalera William Ventura produces its own line of cigars under the ADV and McKay and ADVentura names as well as producing cigars for Caldwell Cigar Co., Bellatto Premium Cigars, Freud Cigar Co., Room101, J. London Cigars and others. Intercigar produces the Vallejuelo line as well as other brands and has also produced cigars for RBGN Rauchvergnugen.

    The two companies shared the same factory building. The cause has not been identified yet, but there were no reported injuries.

    Tabacalera William Ventura will move its production to a smaller factory, El Maestro, while the main facility is unavailable.

    The Zona Franca La Palma complex is home to several cigar factories.

  • Malaysia Lawmakers Studying Kiwi Policies

    Malaysia Lawmakers Studying Kiwi Policies

    Photo: sharafmaksumov

    Malaysia has sent a parliamentary delegation to New Zealand to see what policies are required to achieve its smoke-free ambitions. According to Nancy Loucas, co-founder of the Aotearoa Vapers Community Advocacy, the visit reflects that Kiwis are getting the mix right when it comes to tobacco control, legalizing and regulating vaping.

    Nancy Loucas

    As part of their visit, members of a special Malaysian health, science and innovation select committee intend to meet with New Zealand’s Minister of Health as well as tobacco harm reduction experts to learn exactly what New Zealand is doing to achieve its national ambition of Smoke-Free 2025.

    “The visiting Malaysian delegation is a timely reminder to New Zealand MPs [Members of Parliament] to keep focused on the prize—that is, crushing combustible tobacco and not try[ing] to relitigate the 2020 vaping legislation, which is still bedding in and is the envy of plenty,” says Loucas.

    Now before Parliament’s health select committee, New Zealand’s Smokefree Environments and Regulated Products (Smoked Tobacco) Amendment Bill limits the number of retailers able to sell smoked tobacco products, aims to make tobacco products less appealing and addictive and prohibits the sale of tobacco products to anyone born in 2009 or after.

    Similarly, Malaysia’s “generational endgame” bill proposes to ban the sale of cigarettes and tobacco products to anyone born during and after 2007. However, Malaysia’s health minister has proposed adding vaping products to the generational ban—a move that has been criticized by advocacy group MOVE (Malaysian Organization of Vape Entities).

    “As a percentage, Malaysia has more than twice as many smokers than New Zealand. Hopefully, the visiting delegation will take a clear message back to Malaysia that you can’t achieve smoke-free without providing a safer, viable alternative,” says Loucas.

  • United Tobacco Starts Manufacturing in Egypt

    United Tobacco Starts Manufacturing in Egypt

    Photo: Tobacco Reporter archive

    The United Tobacco Co. (UTC) has started manufacturing cigarettes in the Egyptian market, ending the decades-old monopoly by the state-owned Eastern Co., reports Ahram Online.

    UTC secured a government license to establish a cigarette factory in 2022. The company is jointly owned by PMI and Eastern Co., which acquired a 24 percent stake in the firm.

    Eastern Co. Managing Director Hany Aman stressed his company had not been negatively affected by UTC’s presence.

    “Our acquisition transaction in the UTC compensates for the absence of PMI proper in the Egyptian market. PMI products are available in the local market under the label ‘Made by UTC,’” he stressed. 

    Under the deal, UTC is obliged to lease the building and the current production lines previously allotted to the manufacturing of PMI products from Eastern Co. for a period of three years. Meanwhile, Eastern Co. is obliged to manufacture PMI products on the same production lines until June 2022. 

    PMI affirmed its full commitment to all existing contractual relationships with traders and suppliers in order to ensure the availability of its products in Egypt. The company added that it will continue to provide all of its products at the same prices with no changes to packaging. 

    Eastern Co.’s revenues grew by 6 percent to EGP67.9 billion in fiscal year 2021–2022. Eastern Co. and PMI have each raised their cigarette prices twice so far in 2022 due to increased production costs and the depreciation of the Egyptian pound against the U.S. dollar. 

    “Eastern Co. is trying to absorb the rise in production costs that were caused by recent increases in raw materials costs and also disruptions in supply chains amid the ongoing conflict in Europe,” Aman explained to Ahram Online. 

    In the first half of 2022, PMI shipped 9.9 billion cigarettes and 0.3 billion heated-tobacco units in Egypt, claiming 22.5 percent share of the local market.

    Eastern Co. has license-manufactured PMI’s bestselling Marlboro brand in Egypt since the 1980s.

  • H.B. Fuller Appoints Celeste Mastin as President and CEO

    H.B. Fuller Appoints Celeste Mastin as President and CEO

    Celeste Mastin (Photo: H.B. Fuller)

    Celeste Mastin will succeed Jim Owens as H.B. Fuller’s president and CEO, effective Dec. 4, 2022. Mastin will also join the company’s board of directors.

    Mastin currently serves as executive vice president and chief operating officer of H.B. Fuller. Prior to joining H.B. Fuller, Mastin served as CEO of PetroChoice Lubrication Solutions, one of the largest distributors of petroleum lubrication solutions in the United States.

    Prior to that, she held CEO roles at Distribution International and MMI Products, and she served in senior leadership roles at Ferro Corp. and Bostik Adhesives, now owned by Arkema. Mastin began her career at Shell Chemical Co. She currently serves on the board of directors of Granite Construction.

    “It has been a privilege to serve as CEO of H.B. Fuller, and I am very proud of all that we have accomplished as a team over the last 12 years,” said Owens in a statement. “With a proven value-creation strategy, an experienced leadership team in place and positive momentum, this is the opportune time to transition the company’s leadership.

    “Celeste is an outstanding leader and ideal fit with H.B. Fuller’s entrepreneurial, customer-focused, global culture. She brings strategic insights, continuity of leadership and a strong record of delivering exceptional results. I am confident the company will excel and reach new levels of financial and operational performance under her leadership.”

    “I would like to thank Jim and the board for the opportunity to lead this fantastic company and the many exceptional team members who work for H.B. Fuller,” said Mastin. “H.B. Fuller has a rich history of innovating to create unique products to meet our customers’ most challenging needs and has become the world’s leading pure-play adhesives company.

    “We have a winning strategy, tremendous talent and leadership, and the entrepreneurial culture that will continue this legacy. I believe strongly in our strategy and vision, and I will remain focused on expanding on these strengths to accelerate organic growth and enhance the company’s margin profile to achieve our strategic goals and reach our full potential.”

  • CTP Director: Nicotine Salts Show Potential

    CTP Director: Nicotine Salts Show Potential

    Brian King (Photo: FDA)

    During an exclusive interview with the Associated Press, the director of the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), Brian King, said the FDA is well on its way in setting a foundation for substantial reductions in combustible tobacco smoking with the product standards such as a menthol ban and flavor bans for e-cigarettes and cigars.

    When asked about several surveys that have shown many adults think e-cigarettes are as dangerous as traditional cigarettes, King said he was fully aware of the misperceptions surrounding vaping products those misperceptions aren’t consistent with the known science.

    “We do know that e-cigarettes — as a general class — have markedly less risk than a combustible cigarette product,” King said. “That said, I think it’s very critical that we inform any communication campaigns using science and evidence. It has to be very carefully thought out to ensure that we’re maximizing impact and avoiding unintended consequences.”

    King also said he believes “there’s a lot of really important science and innovations” that have occurred in the vaping industry in recent years, adding that the most notable is nicotine salts in e-liquids.

    “We know that when you smoke a tobacco product, it’s a very efficient way to deliver nicotine across the blood-brain barrier. So it’s been very difficult to rival that efficiency in another product,” said King. “But in the case of nicotine salts you have the potential to more efficiently deliver nicotine which could hold some public health promise in terms of giving smokers enough nicotine that they would transition completely.

    “But you also have to consider the opposite side of the coin, which is the inherent risks of initiation among youth. So I do worry about that … there’s a lot happening and I think that it could be promise or peril. But I think it’s important that the science drives that.”

  • BAT Invests in Sanity Group

    BAT Invests in Sanity Group

    Photo: PiyawatNandeenoparit

    BAT, via one of its wholly owned group companies, has acquired a noncontrolling minority stake in Sanity Group, one of Germany’s leading cannabis companies.

    This investment is complementary to other recent investments made by BAT companies, most notably the strategic R&D collaboration established with Canada’s Organigram Holdings announced in March last year.

    Sanity Group, which is based in Berlin, produces CBD consumer brands and medical cannabis brands. It also has a proven track record in the research, development and marketing of cannabis products. 

    “Investing in Sanity Group is another example of BAT’s ongoing work to explore numerous areas beyond nicotine, positioning BAT for future portfolio growth across a range of categories and geographies,” said Kingsley Wheaton, chief growth officer at BAT, in a statement.

    “We continue to transform our business through better understanding of our current and future consumers as part of our ‘A Better Tomorrow’ purpose.”

    Sanity secured $37.6 million in the BAT-led Series B funding round, according to Sanity founder and CEO Finn Age Hansel. About half of the funding will go toward strengthening Sanity’s medical business. The rest of the funding will go toward preparing for the possible legalization of recreational marijuana in Germany.

    Germany has not legalized recreational cannabis yet, but action is expected sooner rather than later. Germany’s coalition government is “working actively on it and really want[s] to come to a good draft of the law by the end of this year,” Hansel said. “This is really a priority topic for the government.”

    “This funding is an important milestone for us and a strong signal toward the future of cannabis in Germany and Europe,” said Max Narr, chief investment officer at Sanity Group. “Against the backdrop of a challenging global economy, we are proud to have achieved a funding round of this magnitude.”