Category: News This Week

Andy Cars Joins Sting Free Board

Photo: Sting Free
Serial entrepreneur Andy Cars has invested in Sting Free and joined the company’s board of directors.
Since 2014, Cars has been running Lean Ventures International, focusing on structuring and streamlining innovation work in large companies. As part of that work, Cars helped develop the world’s first management system for innovation (ISO 56002), which was published in July 2019. Customers include H&M, Essity, Tieto, SMHI, BillerudKorsnas and Philip Morris.
Cars has also coached more than 200 startup teams to take their ideas to market. As a jury member of the European Innovation Council, Cars evaluates and funds scalable startups within the EU.
Cars holds a magna cum laude Master of Business Administration degree from the European University Business School in Lisbon.
“Sweden has the lowest number of smokers per capita in Europe and is the only country in the EU that allows the sale of snus,” said Cars in a press note. “I think that other countries will soon start to follow Sweden’s example. With tobacco-free nicotine pouches being permitted, not only in the EU but in most countries, such a development is already taking place.”
“Andy brings to the board a whole range of unique qualifications and valuable experiences that I am convinced will help Sting Free AB to continued success,” said Bengt Wiberg, CEO of Sting Free. “We are looking forward to soon launch the world’s first patented sting-free snus and nicotine pouches via licensees.”
The board of Sting Free now comprises Bengt Wiberg, Daniel Wiberg, Andy Cars and Lars Erik Stromberg. Advisers include Ken Storey, Curt Enzell, Tony Axell and Conny Andersson, who joined Sting Free in April.
Sting Free has developed a solution that eliminates the stinging sensation associated with snus use, thus reducing a barrier to tobacco users looking for less harmful methods of nicotine consumption.
Tobacco Reporter profiled Sting Free in July 2017 (see “Patching the Pouch”).
July 8, 2021
JTI to Offer Flexible Work Arrangements
JTI is giving its employees the flexibility to work up to 50 percent of their time per month away from the office, benefit from flexible core hours and work up to 10 days abroad, among other “New Ways of Working” (NWOW) measures, which redefine where and how work is done.
Following the success of remote working during the pandemic, JTI says it has built its new working model around four core elements: greater FLEXibility in ways to work, LEAD with more autonomy, LIVE a more balanced work-life blend and BELONG at JTI—regardless of if one is based in an office, factory or operates in the field.
“Like most people working today, and even before the pandemic hit, achieving more of a work-life balance has been a key priority for our employees,” said Howard Parks, senior vice president of people and culture at JTI, in a statement.
“Flexible working and the ability to work abroad for up to 10 days per year are the latest examples of measures to help every employee feel empowered to strike that balance. Performance and outcomes are what matter here, not hours spent in the office.”
JTI’s NWOW guidance follows the launch in January of the company’s pioneering equal family leave policy, which offers a minimum of 20 weeks fully paid leave to all new parents globally.
We recognize the responsibility we have to do all we can to support our employees and that being happy and content in how they balance their work and personal lives will serve everybody for the better.
Christiane Bisanzio, vice president of diversity and inclusion, JTI
“We recognize the responsibility we have to do all we can to support our employees and that being happy and content in how they balance their work and personal lives will serve everybody for the better,” said Christiane Bisanzio, vice president of diversity and inclusion at JTI. “We understand the importance of flexibility and the need to be agile, which is why our new policy is intended to be evolutionary, and with every new learning, we will improve and refine our approach. As far as JTI is concerned, work is an activity, not a place or time.”
The new policy was rolled out on July 1, 2021, and an additional measure of a four-day work week will be piloted in the first quarter of 2022 across selected locations. Further steps are being taken, including close collaboration with markets, to ensure flexibility is offered to factory and sales teams, including piloting remote working in mature locations from 2022.
July 8, 2021
Taiwan: E-cigarette Use Tripled in Few Years

Photo: Richie Chan
E-cigarette use in Taiwan has tripled since 2018, reports The Taipei Times, citing a study by the Ministry of Health and Welfare’s Health Promotion Administration (HPA).
In 2018, e-cigarette use was at 0.6 percent; in 2020, that rate grew to 1.7 percent, according to the study, which looked at responses from 25,000 people 18 years and older.
The highest e-cigarette use rates were found in men ages 26 to 30, at 6.3 percent, and women ages 21 to 25, at 4.6 percent.
“To put this growth into perspective, use of traditional cigarettes grew only marginally over this period, from 13 percent in 2018 to 13.1 percent in 2020,” said Lu Meng-ying, HPA Tobacco Control Division official. “The situation needs urgent attention, especially as new e-cigarette users are almost all young people.”
Most respondents said they use e-cigarettes out of curiosity while 17.3 percent use them to quit smoking combustible cigarettes and 9.7 percent use them because friends use them.
Use of flavored tobacco products is increasing as well, from 8.2 percent in 2018 to 15.6 percent in 2020. Majority of the increase was seen in women.
“There are more than 1,200 additives used in flavored tobacco products, and the vast majority of them are chemically derived,” Lu said. “The goal of manufacturers is to prevent new smokers, especially young women, from being turned off by foul smells.” He added that the effects of long-term use of flavored products are not well understood.
July 8, 2021
USTC Files for Chapter 11 to Fulfill Contracts

Photo: USTC
U.S. Tobacco Cooperative (USTC) has filed for Chapter 11 protection in federal court to meet short-term contractual obligations to its member growers during the 2021 crop season.
“This filing provides us the best way possible to meet our short-term obligations and plan for the future,” said Oscar J. House, CEO and president of USTC, in a statement.
“In no way does this action reflect on the health of the organization and its ability to continue operations well into the future. In fact, this action is in response to the uncertainty presented by the ongoing class action litigation brought against us in 2005. Rest assured that our obligations to our member growers, employees, suppliers and customers have always been and will continue to be our highest priority and concern.”

This filing provides us the best way possible to meet our short-term obligations and plan for the future. In no way does this action reflect on the health of the organization and its ability to continue operations well into the future.
Oscar J. House, CEO and president, USTC
As a result of this proactive filing, USTC intends to satisfy obligations to its more than 550 member growers and more than 200 employees. The company says suppliers and customers will continue to receive the exceptional service and products the organization is known for across the globe. “This filing will allow USTC to reorganize and restructure to honor commitments to stakeholders and ensure the organization’s sustainable future,” the company stated.
July 7, 2021
Call for Inquiry into Illicit Tobacco Market

Photo: Tobacco Reporter archive
British American Tobacco has called for an inquiry into South Africa’s tobacco market following a new report showing surging sales of illicit cigarettes.
The number of shops selling illegal cigarettes in the Eastern Cape has more than doubled in the four months since the last time results were released, according to a recent Ipsos report. In KwaZulu-Natal, the rate has shot up by one-third. Two out of three shops in the hotspot provinces of Free State, Gauteng and Western Cape sell illegal cigarettes, and illegal cigarettes are on sale in nearly half (41 percent) of all shops nationwide.
Five times as many outlets on petrol forecourts now sell illegal cigarettes since the last time results were released, according to BAT. Illegal cigarettes are being sold for as little as ZAR6 ($0.42) per pack, a fraction of the Minimum Collectible Tax (MCT) rate of ZAR21.60 per pack of 20.
“This research is damning proof that authorities have failed to bring South Africa’s colossal criminal market in cigarettes under control,” said BATSA General Manager Johnny Moloto in a statement. “Tax-evading manufacturers who exploited last year’s lockdown ban are now running rampant and costing South Africans huge sums of money at a time when every cent is a lifesaver. It is nothing short of a national emergency that demands a full-scale inquiry into the whole industry.”
According to BAT, brands owned or licensed by members of the Fair-Trade Independent Tobacco Association feature prominently on the black market. The FITA in the past has rejected suggestions that its members are involved in the illicit trade.
The latest Ipsos fieldwork was carried out from June 15–22, 2021, and follows similar studies in March and February of this year.
Moloto urged the government to introduce of a minimum retail sales price of ZAR28 for a pack of 20, ratify the World Health Organization’s illicit trade protocol and introduce a track-and-trace system, among other measures to fight the illegal cigarette trade.
July 7, 2021
Former Juul Executive Joins Poda Lifestyle

Photo: Poda Lifestyle and Wellness
Former head of corporate affairs for Juul Labs Nicholas Kadysh has joined Poda Lifestyle and Wellness as a member of the global advisory board.
With over a decade of experience as a public affairs and regulatory expert, Kadysh has led government relations and regulatory departments for a number of large corporations, including acting as head of corporate affairs for Juul Labs, as government affairs and public policy leader for General Electric Canada and as director of public affairs for Red Bull Canada. Kadysh is currently the founder and CEO of PharmAla Biotech.
Prior to his work in the corporate sector, Kadysh gained a deep understanding of government as a campaign and legislative staff member in multiple levels of government, most recently directing the outreach department of the Office of the Leader of the Opposition at Queen’s Park in Toronto. He has also worked at the Canadian Parliament as a policy advisor.
Kadysh is trilingual (English, French and Russian) and is a graduate of Queen’s University. He is active in nonprofit and community initiatives in Toronto, including fundraising for Toronto East General Hospital and as a member of the board for Yonge-Dundas Square.
“I believe that Poda is well poised to gain significant market share in the rapidly growing heat-not-burn market,” said Kadysh in a statement. “With my vast experience in public affairs and as a regulatory expert, I look forward to helping guide Poda as they continue their global expansion. Entering highly regulated markets requires careful planning and skillful execution, and there are many potential pitfalls to be avoided.”
“Having worked closely with Nick at Juul Labs Canada, I can personally attest to the skill and expertise that Nick brings to the table,” said Michael Nederhoff, previous president of Juul Labs Canada, who joined Poda’s global advisory board in early July. “Nick has a wealth of regulatory experience across various categories and in multiple countries, which will be invaluable as we scale the business.”
July 7, 2021
Smoking Plunged During Lockdown

Photo: sezerozger
South Africa’s 2020 Covid-19 lockdown and temporary tobacco sales ban resulted in the fastest fall in smoking prevalence in the country’s history, according to a new study published in Tobacco Control.
Four unpublished surveys estimate that between 16 percent to 49 percent of smokers quit during the five-month ban on tobacco sales. The threefold variance in outcomes is likely due to the characteristics of the respondents studied.
South Africa prohibited tobacco sales from March to August 2020 to help prevent the spread of the coronavirus. The aim was to decrease both disease severity among infected smokers and the demands on the health system.
The 2020 lockdown provided a unique opportunity to study smokers’ responses to the market disruption created by a sudden prohibition on cigarette sales. The ban was unexpected—creating challenges and opportunities for smokers and vapers. Smokers could maintain or change consumption levels—buying cigarettes illegally, if necessary—or stop smoking.
Public perceptions of the ban and the behavior of smokers were monitored by several surveys, but these produced inconsistent data. Despite this, the findings of some surveys were prominently reported in the media, and some also featured in litigation between the tobacco industry and the government.
In December, the country’s High Court ruled that the measure was unconstitutional.
Data showed that the prevalence of cigarette smoking declined during the lockdown and there was evidence that this was the fastest fall in smoking prevalence in the country’s history. The extent of the fall in smoking is uncertain because of methodological limitations, according to the authors, who suggest that better communications from government on the rationale for a ban on sales and a clamp down on illicit sales may have increased compliance.
Prevalence studies post-lockdown, using probability sampling, may show more accurately how many quit, how many relapsed and the size of the illicit market.
July 7, 2021
Denmark Adopts Plain Packaging

An example of plain packaging from Australia, which pioneered the concept.
(Photo: Taco Tuinstra)
In December 2020, the Danish Parliament adopted an amendment to the Tobacco Act establishing a requirement to ensure that “each unit pack and any outer packaging [of tobacco products] has a standardized design,” according to the Framework Convention for Tobacco Control. This requirement does not apply to cigars and pipe tobacco.
Subsequently, the minister of health issued Executive Order 572 of March 2021 detailing the standardized design and packaging requirements applicable to individual packets, outer and inner packaging and packaging material of tobacco products and herbal smoking products. These include standardized design requirements regarding surfaces, text, wrapping material and markings. Executive Order 699 of April 2021 further extends the applicability of plain packaging provisions to electronic cigarettes and refill containers with and without nicotine.
The measures for tobacco and herbal smoking products went into force on July 1, 2021, and come into full force on April 1, 2022.
The measures for electronic cigarettes and refill containers will come into force on Oct. 1, 2021, and come into full force on Oct. 1, 2022.
July 6, 2021
Sales Resume Historical Drop as U.S. Reopens

Photo: Africa Studio
U.S. demand for combustible cigarettes declined 11.3 percent year over year, resuming their historical rate of decline following a temporary increase during 2020, reports The Winston-Salem Journal, citing the most recent Nielsen survey of convenience stores. The report lists total nicotine volumes down 9.4 percent for the same period.
In the early months of the Covid-19 pandemic, U.S. smokers increased their cigarette purchases in response to stay-at-home orders. This year has seen a return to more typical shopping conditions.
Philip Morris USA traditional cigarette volumes fell 9.5 percent year over year while Reynolds had an overall 9.2 percent decrease and ITG Brands was down 6.3 percent.
Tobacco manufacturers have been able to offset much of the recent volume declines through a series of per-pack list price increases in recent months.
For example, R.J. Reynolds Tobacco Co. will increase the list price of certain brands by $0.14 per pack on July 5, according to a report by Goldman Sachs analyst Bonnie Herzog.
Meanwhile, sales of electronic cigarettes were down 4.9 percent.
Sales overall have slumped since February 2020 when the Food and Drug Administration implemented its latest round of heightened regulations on the products.
Those restrictions required manufacturers of cartridge-based e-cigarettes to stop making, distributing and selling “unauthorized flavorings” by Feb. 6 or risk enforcement actions.
With a share of 49.5 percent, Juul remains market leader, followed by Vuse (33.5 percent), NJoy (4.5 percent) and Blu eCigs (3.1 percent), according to Nielsen.
July 4, 2021
PMI and TissUse to Conduct Joint Research

Photo: vegefox.com
Philip Morris International and TissUse have signed a collaboration agreement to utilize PMI’s InHALES technology in combination with TissUse’s proprietary multi-organ-chip (MOC) platform to enable inhalation exposure of functional human tissues in homeostasis at minute scale in vitro.
The two partners will develop an integrated human aerosol test platform that emulates the entire human respiratory tract in terms of dimension and architecture. PMI has established a platform, InHALES, that matches the architecture and characteristics of the human respiratory tract.
TissUse has established the widely used Humimic MOC platform, which enables functional human tissue response in vitro. A “plug-and-play” interface between the two technologies will allow physiologically relevant exposure to complex aerosols in the background of an in vivo-like organization and breathing performance of the human lungs.
The novel integrated Humimic–InHALES test platform will allow acute and subchronic tests on lung models in combination with miniaturized human liver equivalents, enabling assessment of local effects on the biological barrier of lung epithelia, penetration of substances into blood circulation and eventual systemic effects.
According to PMI, Humimic–InHALES will provide a highly predictive model for assessing respiratory toxicity and systemic human effects of inhaled aerosols and their constituents, such as environmental toxins, smoke particles, airborne pathogens and inhalable medications.
“The agreement meets PMI’s ambitions to extend its competence in aerosol applications to the development of new methods for exploratory research and translational sciences, which will not only help advance the research and development of PMI products but also broadly support biomedical research beyond PMI’s core business,” said Julia Hoeng, global head of discovery at PMI, in a statement.
“This agreement synergizes the complementary ideas, know-how and experience of both companies. We are very much looking forward to enhancing TissUse’s highly innovative product and assay portfolio through this collaboration,” said Reyk Horland, CEO of TissUse.
July 4, 2021