Category: News This Week

Pyxus Chief Financial Officer to Retire

Photo: bortnikau
Joel L. Thomas will be retiring from his position as executive vice president and chief financial officer at Pyxus International upon the appointment of his successor. Thereafter, Thomas will continue to serve as a strategic advisor to facilitate the transition of his responsibilities until he retires from that position on or before June 30, 2022. The company has initiated an executive search for Thomas’ successor.
“On behalf of Pyxus and the board of directors, I would like to thank Joel for his dedication and contributions to the company,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.
“Throughout his time with the company, Joel has provided financial leadership and implemented innovative financing structures to meet our evolving global requirements. His leadership and dedication were critical over the past year as we navigated the impact of the Covid-19 pandemic and implemented significant restructuring efforts that have positioned our business for long-term success. Joel’s passion for the business, our shareholders, our employees and our customers is evident to anyone who interacts with him, and I wish him all the best in the next chapter of his journey.”
Thomas has spent the past 16 years of his career with Pyxus International, including serving the last seven years as CFO.
“It has been a privilege to work and serve alongside our talented global team,” said Thomas. “I’m proud of the steps we have taken to create a solid foundation for the company that will enable it to achieve long-term success.”
June 30, 2021
TAAT Revenue Triples Over Previous Quarter

Photo: Taat Global Alternatives
Taat Global Alternatives reported revenue of CAD691,484 ($558,692) for the three months that ended on April 30. The figure was up more than 300 percent over the previous quarter, reflecting a faster-than-anticipated rollout and strong uptake of the company’s products at both the distributor and end customer levels.
The company said it made several key accomplishments during the period, which was the first full quarter in which Taat was sold at retail. Highlights of the quarter included the launch of e-commerce to complement retail sales, the upgrade of its common shares to the OTCQX Best Market and the landing of its first major sporting event sponsorship.
The company was also featured in Forbes during the quarter.
Taat is now sold by more than 300 Ohio retailers, with new store placements in both Illinois and Georgia. The company also has international distribution relationships in the United Kingdom and Ireland.
“I am pleased to say that the rollout of Taat is ahead of schedule as reflected in our second-quarter financial and operating performance,” said Setti Coscarella, Taat CEO, in a statement. “We generated outstanding quarter-over-quarter revenue growth, and we expect that the trend will remain highly positive in the quarters to come as customer awareness and demand steadily increase.”
June 30, 2021
Malawi Child Labor Case to Proceed

Photo: AA+W
British American Tobacco and Imperial Brands failed to persuade the U.K. high court to throw out a case alleging they are responsible for the exploitation of farm families and child labor in Malawi, The Guardian reported on June 25.
The case was brought following a Guardian investigation in June 2018.
Lawyers at Leigh Day allege the working conditions on Malawi tobacco farms breach the definition of forced labor, unlawful compulsory labor and exploitation under Malawian law. They also say they breach the U.K. Modern Slavery Act, Article 14 of the European Convention on Human Rights, and the International Labor Organization definition of forced labor. They say the companies have unjustly enriched themselves at the expense of Malawi farming families.
British American Tobacco and Imperial Brands deny the allegations. They argued that the Malawian families could not prove that the tobacco they grew had ended up in the companies’ cigarettes.
In the high court, Justice Martin Spencer said the companies’ application to strike out the case had been “misconceived.” The judge said lawyers for the farmers were not required to offer proof at the beginning of a legal action, only when it came to full trial.
A spokesperson for Imperial said they could not comment further because the litigation was ongoing, “other than to reiterate that we will continue to defend the claim.”
BAT said it had “a longstanding commitment to respect the human rights of our employees, the people we work with and the communities in which we operate. We will continue to vigorously defend the claims, and we are unable to provide further comment while this case continues.”
June 29, 2021
Next Generation Labs Receives Patent

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Next Generation Labs has received a European Patent (No. 3209653) for its proprietary technology related to the preparation of R-S isomer nicotine.
“This patent grant by the European Patent Office is a significant milestone for Next Generation Labs, as it solidifies our tobacco-free synthetic nicotine intellectual property portfolio across a number of European countries, allowing the company to better enforce its rights against violators and counterfeiters of its industry-leading TFN branded synthetic nicotine,” Next Generation Labs wrote in a statement.
“Alongside our announcement of patent grants in China, Australia and Canada and the enforcement efforts of our strategic partner NextEra in South Korea, we are now even better positioned to take direct action against companies violating our patented nicotine production process in an additional 38 countries.”
Next Generation Labs says it was the first company to successfully scale the bulk manufacture of nontobacco synthetic nicotine for use in novel nontobacco products, such as vape liquids and pens, in heat-not-burn devices and in many modern oral nicotine products as well as in innovative pharmaceutical nicotine cessation products.
“Our company believes that consumers have a right to access nontobacco-derived nicotine as a matter of choice,” Next Generation Labs wrote.
“There are many adult consumers who wish to enjoy nicotine but want to do so without the lingering and potentially detrimental effects of long-term tobacco use. The introduction of TFN branded synthetic nicotine has created a liberating opportunity for consumers, who as a result of Next Generation Labs’ nicotine technology, are now able to achieve a complete break from tobacco as they enjoy many of the leading brands available on the market today that use TFN.”
June 29, 2021
Juul Settles North Carolina Vaping Lawsuit

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North Carolina has settled its lawsuit with Juul Labs for $40 million, reports The New York Times. The lawsuit is the first decision in of a series of lawsuits brought by states that claimed the company’s marketing practices fueled widespread addiction among young people to its e-cigarettes. The money will fund programs to help people quit e-cigarettes, prevent e-cigarette addiction and research e-cigarettes.
“This settlement is consistent with our ongoing effort to reset our company and its relationship with our stakeholders as we continue to combat underage usage and advance the opportunity for harm reduction for adult smokers,” said Juul spokesman Joshua Raffel in a statement.
The settlement was announced on June 28 by North Carolina Attorney General Josh Stein, who said that Juul agreed to avoid marketing that appeals to those under the age of 21. The company will curtail its use of “most social media advertising, influencer advertising, outdoor advertising near schools and sponsoring sporting events and concerts,” Stein said.
North Carolina sued Juul Labs in May 2019, becoming the first state in the U.S. to file suit against the e-cigarette manufacturer. In the agreement, the company denies any wrongdoing or liability. Juul Labs will ensure its products are sold behind counters, the attorney general said. Juul Labs will also use third-party age verification systems for online sales. The order also commits Juul to sending teenage “mystery shoppers” to 1,000 stores each year to check whether they are selling to minors.
The settlement also bars the company from using models under age 35 in advertisements and states that no advertisements should be posted near schools. “For years Juul targeted young people, including teens, with highly addictive e-cigarettes,” said Stein in a statement. “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.”
Thirteen states, including California, Massachusetts and New York, as well as the District of Columbia have filed similar lawsuits. The central claim in each case is that Juul knew, or should have known, that it was hooking teenagers on pods that contained high levels of nicotine.
“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. I’m incredibly proud of my team for their hard work on behalf of North Carolina families,” Stein said. “We’re not done—we still have to turn the tide on a teen vaping epidemic that was borne of Juul’s greed. As your attorney general, I’ll keep fighting to prevent another generation of young people from becoming addicted to nicotine.”
June 28, 2021
Japan: Cigarette Sales Drop Below 100 Billion

Photo: Colleen WIlliams
Cigarette sales in Japan fell below 100 billion in 2020 for the first time in decades as more smokers embraced tobacco-heating products, reports Japan Today, citing industry data.
In the year that ended in March, cigarette sales plunged by a record 16.3 percent from the year before to 98.8 billion sticks, the lowest since fiscal 1990 when comparable data became available, according to the Tobacco Institute of Japan.
The figure represents more than a 70 percent drop from fiscal 1996 when sales peaked at 348.3 billion cigarettes.
In 2019, 27.1 percent of men and 7.6 percent of women regularly smoked, down from 29 percent and 8.1 percent, respectively, from the year before, the survey showed.
Smokers in Japan purchased 41.3 billion heated-tobacco products in 2020, equivalent to some 40 percent of rolled cigarette sales.
Industry officials attributed the growing popularity of tobacco-heating products in part to the Covid-19 pandemic. While coronavirus lockdowns created more opportunities to smoke at home, many teleworkers opted for tobacco-heating products to avoid releasing smoke inside their homes or on balconies.
In April, Japan banned smoking in government buildings, eateries, hotel lobbies and workplaces.
In May, Philip Morris International CEO Jacek Olczak said the company expects to stop selling combustible cigarettes in Japan within the next 10 years to 15 years.
Japan Tobacco, which saw falls in revenues and profits in 2020 due to slumping sales of combustible products, hopes to restore its performance by launching a new heated-cigarette product this summer.
June 28, 2021
Bhutan Moves to Legalize Tobacco

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The National Assembly of Bhutan has taken a first step toward lifting the country’s ban on tobacco products, reports East Mojo.
Passed on June 25, the Tobacco Control (Amendment) Bill 2021 and Tax Bill of Bhutan 2021 would legalize the selling, buying, possession, distribution and transportation of tobacco and tobacco products in the country. Manufacturing tobacco would remain illegal, however.
By legalizing tobacco, legislators hope to help check the spread of Covid-19, which they believe has been worsened by the continuous smuggling of tobacco products through Bhutan’s porous southern border.
The act also mandates that the government provide counselling and treatment to facilitate tobacco cessation. Premised on the physical health and well-being of the Bhutanese people, the legislation recognizes the harmful effects of tobacco consumption and exposure to tobacco smoke on both spiritual and social health.
The bill will now be referred to the National Council for endorsement.
Bhutan banned tobacco sales in December 2004. Tobacco Reporter was the first to report from the world’s only officially smoke-free nation.
June 28, 2021
Tobacco Tax Hike Clears German Upper House

Photo: Sebastian H
Germany’s upper house of parliament, the Bundesrat, on June 25 approved tobacco tax reform legislation, which includes tax hikes on both traditional cigarettes and next-generation products, reports the Berliner Zeitung.
In 2022 and 2023, the tobacco tax on a pack of 20 combustible cigarettes will increase by an average of €0.10 ($0.12) each year; in 2025 and 2026, it will go up by another €0.15 each year. A pack of branded cigarettes currently costs around €7 in Germany, which last raised its tobacco taxes in 2015.
Manufacturers are likely to pass the higher taxes on to consumers.
Around one in four German adults regularly smokes cigarettes. Health activists had called for significantly higher tobacco tax hikes. The German Cancer Research Center, for example, said the rate would have to increase by at least 10 percent to make a significant dent in smoking. The increases approved by the Bundesrat amount to 3 percent and 4 percent, respectively.
Tobacco taxes earned Germany €14.7 billion in 2020. Without a tax increase, the tax authorities had forecast tobacco tax revenues of €14.1 billion for 2022; with the rules that have now been adopted, they anticipate almost €16 billion.
The tax increase disproportionally targets e-cigarettes and the consumables for tobacco-heating devices—a feature that has attracted considerable criticism from the vapor industry and tobacco harm reduction advocates, who believe such products should be taxed comparatively lightly because they are believed to be less harmful than combustible cigarettes.
SPD politician Michael Schrodi rejected such criticism by pointing out that novel tobacco products have been taxed at low rates to date. “Now they are being taxed appropriately because they too are a health hazard and are potentially addictive,” he said.
June 28, 2021
RYO Tobacco Smuggling Network Dismantled

Law enforcement organizations in Spain and Portugal have dismantled an organized crime group involved in large-scale tobacco smuggling, according to Europol.
The criminals would illegally import from Spain to Portugal large quantities of tobacco leaf and strips, destined to produce both cigarettes and tobacco for roll-your-own cigarettes, which were subsequently distributed onto the Portuguese black market.
On June 24, police arrested eight Spanish and Portuguese individuals and seized 11 tons of tobacco leaf and fine-cut tobacco alongside 90,000 illegal cigarettes and 186,500 cigarette filters. The amount of tobacco seized is enough to produce some 11 million cigarettes worth €2.7 million ($3.22 million) in Portugal.
The criminals were managing the import of the tobacco via several companies established with the sole purpose of committing excise fraud. Cutting and processing facilities had been set up in Spain, from which the tobacco was shipped to Portugal where it was stored in different warehouses until it was distributed further.
The revenue loss generated by these tobacco products illegally imported from Spain to Portugal is estimated at more than €2 million.
Europol brought together the national investigators on both sides who have since been working closely together to establish a joint strategy to bring down this network. Since then, Europol has provided continuous intelligence development and analysis to support the field investigators.
June 28, 2021
Kretek Int’l Announces Leadership Promotions

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Kretek International has announced a series of senior management promotions.
Jason Carignan, currently chief marketing officer of Kretek, will become president of Phillips & King International and TMG International. Carignan’s new role will involve the strategic expansion and digital transformation of the Phillips & King and TMG businesses to serve the evolving needs of independent retailers across the country. Sergio Montolfo, executive vice president and general manager, will report to Carignan and will continue in his role overseeing sales and operations of the business.
Carignan joined the company in 2014 and is credited with the strong growth of Kretek’s many proprietary brands and subsidiaries. Most recently, Carignan served as president of Dryft Sciences, a Kretek subsidiary, where he led the start-up, manufacture and commercialization of Dryft nicotine pouches until the company’s sale to Modoral Brands in November 2020.
“I have tremendous confidence in Jason Carignan, who has championed many of the company’s key successes over the years,” says Kretek President Sean Cassar. “With Jason at the helm of Phillips & King, we’re ready to rapidly advance our business modernization efforts in order to capitalize on the many growth opportunities ahead and to achieve our corporate objectives.”
Additionally, Albert Jose, currently director of Kretek marketing, has been promoted to senior vice president of sales and marketing for Kretek. Jose joined Kretek in 2012, when he began as a brand manager, and over the past nine years has led marketing and brand management efforts for many of the company’s most important products, including Djarum and Cuban Rounds. In moving into his new role, Jose’s duties will expand to include oversight for all of Kretek’s dedicated sales channels and their related marketing programs and product development efforts.
“The Djarum and Cuban Rounds product portfolios represent significant growth opportunities for the company,” says Cassar. “We look forward to Albert Jose and the entire sales and marketing team working together to expand distribution and build on the strong sales and margin growth our company has achieved over the years.”
Both Jason Carignan’s and Albert Jose’s roles will take effect immediately.
June 28, 2021