Category: News This Week

England Paves Way for E-Cig Prescriptions

Photo: goodmanphoto
Doctors in England may soon be prescribing e-cigarettes to help people stop smoking tobacco, according to a news story published by the Department of Health Social Care and the Office for Health Improvement and Disparities. The Medicines and Healthcare products Regulatory Agency (MHRA) is publishing updated guidance that paves the way for medicinally licensed e-cigarette products to be prescribed for smoking cessation.
Manufacturers can approach the MHRA to submit their products to go through the same regulatory approvals process as other medicines available on the health service.
This could mean England becomes the first country in the world to prescribe e-cigarettes licensed as a medical product.
If a product receives MHRA approval, clinicians could then decide on a case-by-case basis whether it would be appropriate to prescribe an e-cigarette to NHS patients to help them quit smoking. It remains the case that non-smokers and children are strongly advised against using e-cigarettes.

This country continues to be a global leader on healthcare, whether it’s our Covid-19 vaccine rollout saving lives or our innovative public health measures reducing people’s risk of serious illness.
Sajid Javid, Health and Social Care Secretary
If a product receives MHRA approval, clinicians could then decide on a case-by-case basis whether it would be appropriate to prescribe an e-cigarette to NHS patients to help them quit smoking. It remains the case that non-smokers and children are strongly advised against using e-cigarettes.
E-cigarettes contain nicotine and are not risk free, but expert reviews from the U.K. and U.S. have been clear that the regulated e-cigarettes are less harmful than smoking. A medicinally licensed e-cigarette would have to pass even more rigorous safety checks.
Smoking remains the leading preventable cause of premature death and while rates are at record low levels in the U.K., there are still around 6.1 million smokers in England. There are also stark differences in rates across the country, with smoking rates in Blackpool (23.4 percent) and Kingston upon Hull (22.2 percent) poles apart from rates in wealthier areas such as Richmond upon Thames (8 percent).
E-cigarettes were the most popular aid used by smokers trying to quit in England in 2020, according to the Department of Health and Social Care. E-cigarettes have been shown to be highly effective in supporting those trying to quit, with 27.2 percent of smokers using them compared with 18.2 percent using nicotine replacement therapy products such as patches and gum.
Some of the highest success rates of those trying to quit smoking are among people using an e-cigarette to kick their addiction alongside local Stop Smoking services, with up to 68 percent successfully quitting in 2020 -2021.

We fully welcome the news that the NHS in England is exploring opportunities to prescribe vaping products to help people quit smoking.
Doug Mutter, director, VPZ
“This country continues to be a global leader on healthcare, whether it’s our Covid-19 vaccine rollout saving lives or our innovative public health measures reducing people’s risk of serious illness,” said Health and Social Care Secretary Sajid Javid.
“Opening the door to a licensed e-cigarette prescribed on the NHS has the potential to tackle the stark disparities in smoking rates across the country, helping people stop smoking wherever they live and whatever their background.”
Vapor industry representative welcomed the prospect of e-cigarettes on prescription.
“We fully welcome the news that the NHS in England is exploring opportunities to prescribe vaping products to help people quit smoking,” said Doug Mutter, director of VPZ, the U.K.’s largest vaping retailer with 157 stores throughout the country.
“The pandemic has triggered an increase in smoking rates and the public health problem has been compounded by funding cuts for NHS stop smoking services and local support groups.
“However this progressive and innovative approach being considered by the NHS in England has the potential to reverse this damage and bring new momentum to our ambitions of becoming a smoke free nation by 2030.”

The government deserves huge praise for taking this bold decision to look more closely at the use of vaping when it comes to smoking cessation and for taking an evidence-based, science-led approach.
John Dunne, director-general, UKVIA
“The government deserves huge praise for taking this bold decision to look more closely at the use of vaping when it comes to smoking cessation and for taking an evidence-based, science-led approach rather than the nonsensical anti-vaping, anti-harm reduction stance of some countries,” said John Dunne, Director General of the U.K. Vaping Industry Association.
“This announcement by the Department for Health is just the latest in a long line of breakthroughs for those of us who for years have advocated vaping as the best and most effective method for people looking to quit smoking.”
October 29, 2021
India Slashes Penalty for Overproduction

Photo: Tobacco Reporter archive
India’s Ministry of Commerce and Industry has cut the penalty on “excess” tobacco produced during the 2021-2022 cropping season by 50 percent to help growers compete on the world market, reports The Hindu.
To prevent overproduction, Indian regulators set a crop size target prior to each production season. Growers who exceed the authorized volume must pay a penalty.
Following the penalty reduction, authorized growers must pay INR1 ($0.01) per kg and 5 percent of the value of their excess production during the 2021-22 cropping season. However, unregistered growers have to pay the old rates.
Tobacco growers welcomed the decision. “We can confidently raise the crop without fearing the penalty to achieve the economies of scale,” said B. Ramaanjaneyulu.
The Tobacco Board authorized production on 27,818 hectares in the Southern Light Soils region and 22,014 hectares in the Southern Black Soils region of Andhra Pradesh.
October 29, 2021
JT Group ups Forecast on Robust Nine Months

Masamichi Terabatake
(Photo: JT Group)
The JT Group reported year-to-date revenue of ¥1.77 trillion ($15.5 billion), up 10.9 percent over those in the first nine months of 2020. Adjusted operating profit at constant currency increased 21.9 percent to ¥538.1 billion. On a reported basis, adjusted operating profit increased 23 percent to ¥542.9 billion. The group’s operating profit was ¥480.7 billion, up 23.2 percent over last year’s period. Based on its performance, the JT Group increased its financial forecasts for the full year.
“The JT Group reported a robust year-to-date performance, driven by strong momentum across the tobacco businesses. Our volume performance continued to be strong, driven by market share increases and stable industry volumes from longer than expected travel restrictions,” said JT Group President and CEO Masamichi Terabatake in a statement.
“We revised our full year forecasts upward, reflecting the robust results delivered in the first nine months of 2021 and also favorable currency trends. Following the upward revisions of our forecast, we are pleased to inform our plan to raise our annual dividend guidance by ¥10 to ¥140 per share.
“In Japan, we have received very encouraging feedback from consumers on Ploom X. However, the global semi-conductor shortage is impacting production of heated tobacco devices, so for the remainder of the year, we will prioritize the device supply in the Japanese market where we have already launched Ploom X. We will continue to strive to secure share growth.
“In addition, with our one tobacco business new operating model from January 2022, we will further strengthen our business foundation as well as build a more agile and consumer-centric organization.”
October 29, 2021
Farmers Rally Against Contracting Plan

Photo: Tobacco Reporter archive
A plan to introduce tobacco contract farming has run into fierce opposition among leaf growers in India, reports The Times of India. During a massive gathering in Guntur on the occasion World Tobacco Growers’ Day, farmers demanded that the central government abandon its proposals, saying that contracting would put growers at risk of exploitation.
“It’s going to have a disastrous effect on the livelihood of millions of growers,” predicted Gadde Seshagiri Rao, former vice president of the Tobacco Board.
Virginia tobacco farmers association president Karatam Venkata said the existing auction system works well because it provides growers with assured payment though the Tobacco Board while contract farming results in delayed payments. In contract farming, he added, farmers’ livelihoods would be at the mercy of traders.
Growers also praised the fairness and transparency of the auction system, which they said provided greater market stability than contracting. The tobacco farmers were particularly incensed that the government had made its proposal without consulting them.
Contract farming has been gaining momentum globally at the expense of auction sales as leaf traders faced with ever-stricter compliance requirements seek greater control over the production process.
October 29, 2021
Essentra ‘Reviewing’ its Filter Business

Photo: Essentra
Essentra is reviewing strategic options for its tobacco filters business, as it looks to focus on its component-making division for other sectors, reports Reuters.
The company, which has supplied filters to cigarette manufacturers for more than 80 years, said the review is expected to finish in the second quarter of 2022.
According to Reuters, Essentra has concluded that it should become a pure play global components business over time and that the strategic review of the filter division was the first step to achieving that.
Essentra’s filter division reported a 2.8 percent rise in revenue in the three months to September.
The company said its components business, which makes plastic molded, vinyl dip molded and metal items used in equipment manufacturing, automotive and electronics, performed strongly in the quarter.
The tobacco industry is facing heavy scrutiny and mounting regulations due to the health risks of its products.
Essentra declined to speculate on whether the firm would divest it cigarette filters business. “As of now, we are unable to comment on the final outcome of the strategic review which is targeted to conclude by second quarter 2022 as it is still ongoing,” a company spokesman told Tobacco Reporter.
October 28, 2021
Prosecution for Exchanging Price Info

Photo: promesaartstudio
The Belgian Competition Authority (BCA) has decided to prosecute Philip Morris Benelux, Établissements L. Lacroix Fils, JT International Company Netherlands and British American Tobacco Belgium for the exchange of information on prices between competitors.
Together, the accused parties account for 90 percent of cigarette consumption in Belgium. The competition prosecutor alleges the existence of anticompetitive practices that lasted for several years and consisted of repeated exchanges of information on their future prices through wholesalers.
According to a BCA press release, the manufacturers sent information on their own future prices to their wholesalers and, through the wholesalers, received information on the future prices of their competitors.
Such conduct may be contrary to Article IV.1 CEL and Article 101 TFEU, according to the BCA.
This case will now be examined by the Competition College. The defendants will have an opportunity to defend themselves against these objections in front of the college. The parties will be able to submit written comments to the Competition College and will be heard at a hearing.
October 28, 2021
U.S. Sales up for the First Time in 20 Years

Photo: akolosov.art
The number of cigarettes that the largest cigarette companies in the United States sold to wholesalers and retailers nationwide increased from 202.9 billion in 2019 to 203.7 billion in 2020, according to the most recent Federal Trade Commission Cigarette Report. This represents the first time annual cigarette sales have increased in 20 years.
According to the 2020 Smokeless Tobacco Report, smokeless tobacco sales increased from 126 million pounds in 2019 to 126.9 million pounds in 2020. The revenue from those sales rose from $4.53 billion in 2019 to $4.82 billion in 2020. For the first time, the Commission is reporting sales of nicotine lozenges or nicotine pouches not containing tobacco. In 2020, the companies sold 140.7 million units of such products in the United States, for $420.5 million.
The amount spent on cigarette advertising and promotion increased from $7.62 billion in 2019 to $7.84 billion in 2020. Price discounts paid to cigarette retailers ($6.07 billion) and wholesalers ($876 million) were the two largest expenditure categories in 2020. Combined spending on price discounts accounted for 88.5 percent of industry spending.
Spending on advertising and promotion by the major manufacturers of smokeless tobacco products in the U.S. decreased from $576.1 million in 2019 to $567.3 million in 2020. As with cigarettes, price discounts made up the two largest spending categories, with $296.6 million paid to retailers and $83.5 million paid to wholesalers. Combined spending on price discounts totaled $380.1 million—or 67.4 percent of all spending in 2020, up from the $376 million spent in 2019.
For the first time, the 2020 data include information on the flavors of the companies’ smokeless tobacco products. Menthol flavored smokeless tobacco products comprised more than half of all sales revenues (54.5 percent); tobacco flavored products (that is, no added flavor) comprised 43.4 percent; and fruit flavored smokeless tobacco products comprised 2.5 percent.
The Commission has issued the Cigarette Report periodically since 1967 and the Smokeless Tobacco Report periodically since 1987. Given the concerning trends highlighted in this report, including the first increase in cigarette sales in two decades, the Commission will continue to expand its approach in reporting shifts in the tobacco industry. The FTC also will use the newly captured data regarding smokeless tobacco products to align the Commission’s enforcement efforts with the emergent realities in the tobacco industry.
October 28, 2021
FDA Stays Bidi Vapor MDO Pending Review
The U.S. Food and Drug Administration has issued an administrative stay of its marketing denial order (MDO) for nontobacco flavored bidi sticks, pending the agency’s review of Bidi Vapor’s request that the MDO be rescinded based on product-specific scientific evidence in its premarket tobacco product applications (PMTAs).
Bidi Vapor’s flavored Bidi Sticks may remain on the market without the threat of enforcement while the FDA reviews the company’s request.
Bidi Vapor, which is part of Kaival Brands, submitted PMTAs for all 11 flavor varieties of its Bidi Stick. The applications ran over 285,000 pages and contained information supporting the products as appropriate for the protection of the public health.
On Sept. 29, 2021, Bidi Vapor filed a Petition for Review with the U.S. Court of Appeals for the 11th Circuit, seeking judicial review of the MDO under the Tobacco Control Act, the Administrative Procedure Act as well as the U.S. Constitution.
“We appreciate FDA’s decision to stay, or put on hold, the MDO as it reconsiders its denial,” said Bidi Vapor Niraj Patel in a statement. “As we explained to the agency, Bidi Vapor submitted scientifically rigorous PMTAs that contained product-specific evidence demonstrating that the added benefit of our flavored Bidi Sticks to adult smokers outweighs any potential risks to youth, especially considering our stringent youth-access prevention measures and commitment to mature, adult-focused marketing.”
“That said, we are still seeking a formal, judicial stay from the appellate court pending the outcome of the lawsuit,” Patel noted.
The company has now filed a Motion for Stay Pending Review with the 11th Circuit Court of Appeals citing the “irreparable harm” it continues to suffer from the MDO.
Multiple companies have challenged their MDOs in recent weeks. In early October, the FDA rescinded MDOs it has issued to Turning Point Brands and Fumizer, placing their products back under review.
According to Filter, Triton, Bidi and Gripum recently received some temporary form of stay, and My Vape Order has demanded a recission due to the fact its PMTA includes some of the same data and studies that also appears in TPB’s applications.
October 28, 2021
Altria Reports Third Quarter Results

Photo: Casimiro
Altria Group reported net revenues of $6.79 billion in the third quarter of 2021, down 4.7 percent from the previous year’s third quarter. Revenue net of taxes was down 2.6 percent to $5.53 billion. Net revenues for the 2021 nine months were $19.76 billion (down 0.5 percent), while net revenue net of excise was up 1.5 percent to $16.03 billion.
“Altria continued to balance maximizing profitability from our core tobacco businesses with investing to realize our Vision of responsibly leading the transition of adult smokers to a smoke-free future,” said Altria CEO Billy Gifford. “Our tobacco businesses performed well against difficult year-over-year comparisons, and we’re encouraged by the significant retail share growth from On! in the third quarter.”
In the third quarter, Altria sold its Ste. Michelle Wine Estates business and received net cash proceeds of approximately $1.2 billion, which Altria used to partially fund its expanded share repurchase program.
Marlboro HeatSticks retail sales volume increased by more than 20 percent sequentially, primarily driven by broader distribution outside of established metro markets and increasing demand in the Northern Virginia metro market.
However, Altria’s plans to roll out Philip Morris International’s IQOS tobacco heating system in the United States suffered a setback when the International Trade Commission (ITC) banned imports of that product following a dispute between PMI and British American Tobacco’s Reynolds American. subsidiary over intellectual property.
In a press note, Altria said it disagrees with the ITC’s decision as it believes that the plaintiff’s patents are invalid and that IQOS does not infringe those patents. The ITC’s decision is currently under a 60-day review by the Biden Administration. If the decision is not rejected through the administration’s review, the ITC cease-and-desist order will take effect on Nov. 29, 2021, making all IQOS and Marlboro HeatSticks products unavailable in the U.S. marketplace.
Altria said its Philip Morris USA subsidiary is preparing contingency plans surrounding sales and distribution, and has been in communication with PMI regarding its domestic manufacturing plans.
October 28, 2021
Swedish Match Reports Record Sales

Photo: Swedish Match
Swedish Match released its interim report, showing record sales with year-on-year revenue growth across product segments, despite comparing to a prior year quarter with elevated demand for certain product lines.
In local currencies, sales increased by 10 percent for the third quarter. Reported sales increased by 9 percent to SEK4.79 billion ($556.8 million).
The company had record operating profit from product segments in spite of continued ramp-up in spending behind growth opportunities for smoke-free products. In local currencies, operating profit from product segments increased by 2 percent for the third quarter. Reported operating profit from product segments increased by 1 percent to SEK2.1 billion.
Operating profit amounted to SEK2.08 billion for the third quarter. Profit after tax for the third quarter amounted to SEK1.54 billion. Profit after tax for the third quarter of the prior year included a charge of SEK286 million following an adverse ruling in a tax case.
On Sept. 14, Swedish Match announced its intention to spin off its U.S. cigar business to shareholders. Subject to various conditions, the separation is expected to be completed during the second half of 2022 at the earliest.
“I am pleased to report that Swedish Match in the third quarter continued to deliver double-digit revenue growth in local currencies along with improved operating profit compared to the third quarter of the prior year,” said Swedish Match CEO Lars Dahlgren.
“With continued ramp-up in marketing related activities to support brand building and long-term growth, as well as the elevated demand (brought on by the pandemic) for several product lines in the prior year period, the financial development in the third quarter is a testimony to the strength and potential of our business.”
October 27, 2021