Category: News This Week

Juul Settlement to Fund Anti-Vaping Research

Photo: steheap
North Carolina will use the $40 million settlement with Juul Labs, announced in June by Attorney General Josh Stein, to help fund research to stop the use of electronic cigarettes among young people, reports The Fayetteville Observer.
“For years, Juul targeted young people, including teens, with its highly addictive e-cigarette,” said Stein. “It lit the spark and fanned the flames of a vaping epidemic among our children—one that you can see in any high school in North Carolina. This win will go a long way in keeping Juul products out of kids’ hands, keeping its chemical vapor out of their lungs and keeping its nicotine from poisoning and addicting their brains.”
Juul Labs will pay North Carolina $13 million in the first year, $8 million the second year, $7.5 million the third year, $7 million the fourth year and $2.25 million the fifth and sixth years. The payout is set to fund programs conducting research and prevention of electronic cigarettes, according to Travis Greer, regional tobacco control manager for the Cumberland County Health Department.
September 29, 2021
Morocco Sets Cigarette Emission Limits

Photo: nikkytok
Cigarettes sold in Morocco will be subject to new emission limits starting in January 2024, reports Morocco World News.
From that date, the emissions of cigarettes imported or manufactured in Morocco and marketed across the country should be at levels not exceeding 10 mg of tar per cigarette, 1 mg of nicotine per cigarette and 10 mg of carbon monoxide per cigarette.
Tobacco companies will be required to declare clear the deliveries on cigarette packages.
The percentages of tar, nicotine and carbon monoxide are measured on the basis of NM ISO 4387 standards for tar, NM ISO 10315 for nicotine and NM ISO 8454 for carbon monoxide. The accuracy of the percentages of tar and nicotine is verified according to the standard NM ISO 8243.
Compliance will be monitored by the Department of Customs and Indirect Taxes. The primary objective of the decree is to align national legislation with international standards.
An estimated 18 percent of Moroccans aged 15 smoke, with nearly 41 percent of the country’s population exposed to secondhand smoke.
September 29, 2021
Thailand OKs New Tobacco Tax Structure

Photo: Jo Panuwat D.
Thailand’s cabinet has approved a new excise tax structure for cigarettes, reports The Bangkok Post, citing a finance ministry source. The measure is expected to take effect Oct. 1.
At present, Thailand levies a 20 percent tax on the retail price for cigarette packs costing up to THB60 ($1.77). If the retail price exceeds THB60 per pack, a 40 percent tax rate is applied.
The cabinet has reportedly agreed to raise the tax rate from 20 percent to 25 percent, including the 40 percent tax rate, together with an adjustment of the retail price, which is at least THB60.
The levy in terms of volume will be raised to THB1.25 per cigarette from THB1.20, with the retail price expected to rise by THB6 to THB8 per pack.
Panuphol Rattanakanjanapatra, governor of the Tobacco Authority of Thailand, has warned that the tax hike will substantially boost the illegal cigarette trade.
September 29, 2021
Tobacco Authority of Thailand Creates Hemp Subsidiary

Photo: kittyfly
The Tobacco Authority of Thailand (TOAT) plans to set up a subsidiary to move into the hemp business, reports The Bangkok Post, citing the state enterprise’s governor, Phanupol Rattanakanjanapatra. The project aims to triple or quadruple tobacco farmers’ incomes.
On Sept. 28, the TOAT signed a memorandum of understanding for hemp business with Santa Fe Farms (Thailand) Co., a subsidiary of Santa Fe Farms LLC in the United States.
Phanupol expects the State Enterprise Policy Office to approve the TOAT’s ambitions in the hemp business within the next couple of months.
TOAT sells 18 billion cigarettes per year. However, a 2017 cigarette excise tax hike has hurt many of its farmers by depressing sales and shrinking the TOAT’s tobacco-buying quota.
The hemp project is intended to help offset farmers’ lower tobacco sales.
September 29, 2021
Taat Arrives in the United Kingdom

Photo: TAAT Global Alternatives
More than 43,000 packs of Taat Original, Smooth and Menthol products have arrived in the United Kingdom and will be dispatched to the London warehouse of Green Global Earth (GGE) following a standard customs inspection. This shipment is part of more than CAD1.2 million ($943,996) worth of Taat purchase orders for distribution in the United Kingdom and Ireland, markets in which GGE is the exclusive Taat distributor.
On Aug. 20, 2021, Taat Global Alternatives announced that Public Health England had issued a Confirmation of Registration authorizing Taat to be sold in Great Britain. The company expects Taat to benefit from several competitive advantages in the United Kingdom, including a lower price point than tobacco cigarettes and the “shelf appeal” of Taat’s colorful packaging in comparison to the plain packaging required by law for all tobacco products. Because Taat does not contain tobacco, it is not subject to the U.K. generic packaging requirements.
Furthermore, based on Philip Morris International’s stated intention to stop selling tobacco cigarettes in the United Kingdom by 2030, Taat will not be competing with bestsellers such as Marlboro in the future.
“Less than one year after the first retail launch of Taat in Ohio, we could not be more enthusiastic about our first international expansion materializing shortly after we cleared the 1,000-store threshold in the United States last week,” said Taat CEO Setti Coscarella in a statement. “GGE has proven to be an invaluable distribution partner for us in navigating the steps required to bring Taat into the United Kingdom and Ireland.
“In addition to our advantages with respect to price and packaging in the United Kingdom, we also believe Taat Menthol can be extremely appealing to smokers of legal age in the U.K. who preferred mentholated tobacco cigarettes before they were banned nationwide last year. All three varieties of Taat will soon be hitting store shelves in both the United Kingdom and Ireland in what we believe will be among the first of many launches in new global markets.”
September 29, 2021
BAT Announces Innovation Hub in Italy

Photo: BAT
BAT will be opening an innovation hub in Trieste, Italy. The company will invest €500 million ($582.2 million) over the next five years in the project.
Covering an area of 20,000 square meters, the hub will host a manufacturing site for BAT’s “new category” products, a digital boutique, an innovation lab and a center of excellence for digital transformation and digital marketing. It will be dedicated to research, development and production of reduced-risk product lines.
The building will be constructed to minimize its environmental impact with the objective of being carbon neutral, with a particular focus on energy efficiency and the use of renewable sources. The facility will also produce energy using a photovoltaic system that converts light into electricity using semiconducting materials.
BAT expects to develop multiple production lines at the facility for the export of reduced-risk products, including Vuse (vapor), Velo (modern oral) and Glo (tobacco-heating products).

The innovation hub will play a key role in our ‘A Better Tomorrow’ transformation as we strive to reduce the health impact of our business.
Kingsley Wheaton, chief marketing officer, BAT
“The innovation hub in Trieste will play a key role in our ‘A Better Tomorrow’ transformation as we strive to reduce the health impact of our business,” said BAT Chief Marketing Officer Kingsley Wheaton in a statement. “Our goal is to create new products, backed by science, that provide adult smokers with enjoyable, less risky alternatives.”
“We are proud to announce the opening of our A Better Tomorrow Innovation Hub, a fundamental part of our transformation goals to reduce the health impact of our business,” said Roberta Palazzetti, president and CEO of BAT Italy and area director for southern Europe. “As a leading center for innovation, Trieste in Italy has been chosen as the home of the project, which demonstrates the capabilities of our country.”
Construction of the structure will begin in mid-November, with the first module scheduled to be completed and activated in May.
September 29, 2021
FDA Urged to Deny All Flavored E-Cigarettes

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Seven leading public health, medical and parent organizations are urging the U.S. Food and Drug Administration to expedite decisions on remaining marketing applications for e-cigarettes and promptly deny applications for all flavored e-cigarettes, including menthol-flavored products.
The organizations say they are concerned about these products’ appeal to youth and the adverse impact on public health.
In a letter to acting FDA Commissioner Janet Woodcock, the groups also urged the FDA to prioritize enforcement against unauthorized flavored e-cigarettes with the largest market shares and products with the highest prevalence of youth use.
The groups sending the letter are the American Academy of Pediatrics, American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Campaign for Tobacco-Free Kids, Parents Against Vaping E-Cigarettes and Truth Initiative.
Since Sept. 9, the FDA has denied marketing applications for more than 1,167,000 products, but it has yet to issue decisions on e-cigarette brands with the highest market shares, such as Juul, Vuse, NJOY and blu, which make up over 78 percent of the market, according to Nielsen data.
The health groups expressed particular concern that the FDA is still considering whether to authorize any menthol-flavored e-cigarettes and urged the FDA not to do so given the clear evidence that menthol is a flavor that appeals to and is widely used by kids.
“Contrary to the FDA’s Aug. 26 statement that menthol e-cigarette products raise ‘unique considerations’ for purposes of FDA review, we do not believe there is anything ‘unique’ about menthol flavoring that would justify issuance of a marketing order,” the groups wrote in their letter. “Indeed, there is no question that when FDA decided to prioritize enforcement against cartridge-based e-cigarettes in flavors other than menthol and tobacco, youth shifted to using menthol-flavored products.”
September 29, 2021
Tobacco-Heating Market Slumps After Tax Hike

Photo: Юрий Дьяконов
The market for heated-tobacco products in Ukraine has stopped growing in the wake of a significant tax hike at the start of 2021, reports the Interfax-Ukraine News Agency. According to Philip Morris International’s local director, Kostas Salvaras, sales will likely decline in 2021.
PMI estimates the market grew by 80 percent in 2020. On Jan. 1, 2021, Ukraine increased the excise tax on heated-tobacco products by 320 percent, causing retail prices to jump and sales to slacken. According to PMI data, retail prices on tobacco sticks have increased by an average of UAH13 ($0.49).
According to PMI, the state budget receipts from the sale of heated-tobacco products in the fourth quarter of 2021 will decrease by 60 percent to 70 percent compared to the same period in 2020. The company intends to reduce the purchase of excise duty stamps for heated-tobacco products by nearly 67 percent in the quarter.
Meanwhile, PMI has already observed an increase in heated-tobacco products smuggled from neighboring countries where prices are lower.
Salvaras estimates that illicit sales now account for 15.9 percent of the Ukrainian tobacco market compared with 2.3 percent in 2017. Given the current level of illegal trade, the state will receive less than UAH13.2 billion in tax receipts in 2021, he said.
PMI has urged the Ukrainian parliament to reconsider plans to further raise excise taxes and delay the next jump in prices for heated-tobacco products.
“This is a necessary step that will allow consumers and businesses to ‘digest’ the 320 percent increase and adapt to new conditions,” said Salvaras. “It will also stimulate the attraction of additional investments in this area, which is important both for the country’s economy and for public health—after all, the authorities should be interested in motivating smokers to look for a less harmful alternative to cigarettes.”
September 29, 2021
Poda Completes Name Change

Photo: Poda Holdings
Poda Holdings has completed the name change from Poda Lifestyle and Wellness to Poda Holdings, pursuant to a directors’ resolution announced earlier this month. The company’s shares will remain trading on the Canadian Securities Exchange under the ticker symbol PODA upon the opening of the markets on Sept. 27, 2021.
The CUSIP number assigned to the company’s shares following the name change is 73044N10 4 (ISIN: CA73044N1042). No action is required by stockholders, and outstanding stock certificates are not affected by the name change and will not need to be exchanged.
In related news, the company has engaged CFN Enterprises, owner and operator of CFN Media, to provide social media and client outreach strategy services for the company.
September 28, 2021
UKVIA Partners With Stop-Smoking App

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The U.K. Vaping Industry Association (UKVIA) has joined forces with the stop-smoking app Smoke Free to encourage more smokers to give up their habit by using a range of evidence-based alternatives to conventional cigarettes.
As part of the collaboration, the UKVIA and Smoke Free have agreed to work on a number of joint campaigns and initiatives that both promote vaping as a successful method to quit smoking and increase access to the app among those smokers looking to kick their habit.
The joint initiatives include a campaign in January, when smokers will be making New Year’s resolutions to quit. Collaborations are also planned during VApril, the UKVIA’s annual vaping awareness month, and on a specific initiative supporting hospital patients with smoking-related conditions and the healthcare professionals that care for them.

This is an exciting collaboration, which is focused on getting smokers to quit completely.
John Dunne, director-general, UKVIA
“This is an exciting collaboration, which is focused on getting smokers to quit completely,” said John Dunne, director-general of the UKVIA, in a statement. “Some 2.4 million former smokers have successfully done this in the U.K. to date, but there are still 1.2 million dual vape/cigarette users and another 6.9 million smokers who have not quit to date.
“By coming together, we want to significantly ramp up support for smokers who are looking to quit.”
“Vapes make quitting easy because they’re a great replacement for cigarettes,” said David Crane, founder of the app. “But habits still need to be changed, which is where the support we provide comes in. We are proud to work with the UKVIA because they share our mission to create a smoke-free world. Together, we stand a great chance of helping people stop smoking for good.”
September 28, 2021