Category: News This Week

University to Study Impact of Flavor Bans

Photo: Borgwaldt Flavor
A new University of Kentucky College of Medicine study will examine how policies that restrict the sale of flavored tobacco products, including menthol cigarettes, impact health disparities among vulnerable populations.
A five-year $2.8 million grant from the National Cancer Institute will support the study on how local policies impact at-risk groups—including communities of color, low-income populations and youth—that are more likely to use flavored tobacco products.
The results could help lawmakers create policies that are more equitable, says the study’s principal investigator, Shyanika Rose, a faculty member of the Center for Health Equity Transformation, assistant professor in the Department of Behavioral Science and member of the Markey Cancer Center Cancer Prevention and Control Program.
“We already know that stopping the sale of these products can reduce their availability and use in these communities,” said Rose in a statement. “But understanding the impact of policies across race and socioeconomic status will give guidance about what kinds of policies work and have the most equitable benefits.”
Rose says flavored tobacco products, which are more appealing, easier to use and more addictive, have a long history of being disproportionately marketed toward vulnerable communities, particularly African Americans. According to the Truth Initiative, nearly 90 percent of all Black smokers use menthol cigarettes, and more than 39,000 African Americans die from tobacco-related cancers each year.
Currently, U.S. federal laws only prohibit the sale of certain flavored tobacco products. The sale of menthol cigarettes and all flavors of smokeless tobacco, cigars and hookah is still permitted. While the Food and Drug Administration recently announced new steps to implement a ban on the sale of menthol cigarettes and flavored cigars, the proposal will not eliminate all flavored tobacco products from the market, specifically flavored e-cigarettes and e-liquids.
In the absence of broad-based federal laws, several state and local jurisdictions across the country have enacted their own policies. Rose says about 30 percent of localities with a policy have a comprehensive one that prohibits the sale of all flavors, including menthol, across all tobacco products.
“While the FDA is moving federal policy in the right direction, comprehensive policies that restrict the sale of all flavored tobacco products may be more likely to protect the health of the most vulnerable populations, and this is something this project will investigate,” Rose said.
June 23, 2021
Study: Tax Hikes Boost Big Brands

Photo: Tobaco Reporter archive
Tax hikes can disproportionately favor bigger brands while tightened restrictions can hurt them, according to a new study by the UBC Sauder School of Business reported by Medical Express.
Researchers examined U.S. cigarette sales data from 2005 to 2010 and retail scanner data from 2006 to 2010. They also analyzed a comprehensive dataset that comprised state-level cigarette taxes, state-level smoking restrictions and national anti-smoking advertising campaigns.
After modeling each smoker’s brand and purchase quantity, the researchers looked at how the taxes, restrictions and ad campaigns influenced their decisions across different brands and price tiers.
They found that while tax hikes may reduce overall sales, big brands’ market shares tend to increase at the expense of smaller competitors.
“Market leaders such as Marlboro were able to absorb more taxes and pass less cost down to their consumers,” said UBC Sauder Assistant Professor Yanwen Wang, who co-authored the study. “So, when consumers look at the prices, it seems like Marlboro has raised prices less when compared to smaller brands.”
Conversely, smoking restrictions seem to hit bigger brands harder—likely because they take away smoking’s brand-driven “cool” factor. With fewer places to light up, it becomes harder for consumers to signal who they are through smoking, which in turn reduces the incentive for smokers to purchase higher equity brands.
The study also shows that while the taxes may help governments boost their bottom lines, ultimately, smokers pay a heavier price. In fact, the researchers found that a 100 percent tax hike leads to a 30 percent increase in the rate of smokers quitting, but it puts the cost on consumers—and only lifts overall tobacco tax revenue by roughly 28 percent because of declining sales.
In contrast, strong smoking restrictions boost quit rates by 9 percent and reduce tax revenues by 6 percent—so while consumers may experience some inconvenience in terms of where they can smoke, they don’t shoulder the economic costs.
June 23, 2021
Connecticut Scolded for Welcoming Philip Morris

Photo: Vankad
The Campaign for Tobacco-Free Kids (CTFK) slammed Connecticut for welcoming Philip Morris International to the state.
On June 22, the tobacco giant announced it would relocate its corporate headquarters to Connecticut from New York, bringing approximately 200 jobs to the state. State leaders, who had helped facilitate the move, welcomed the decision.
“We are excited to welcome PMI to the state of Connecticut, showing once again that our state is a growing and thriving ecosystem for businesses,” said Connecticut Governor Ned Lamont after the announcement. “They recognize what we’ve been saying for years: Connecticut is a wonderful place to raise a family and a competitive place to conduct business. I am also impressed by their culture and desire to integrate closely into the communities in which they operate, and we look forward to seeing their active and charitable contributions to our state.”
“Philip Morris International’s move to Southwest Connecticut will bring approximately 200 good-paying jobs that will boost our economy and augment the tax base, which funds our schools, infrastructure and essential community services,” said State Representative Jim Himes. “As our area recovers from Covid-19, I’m pleased to see new economic investment in our community and thank Governor Lamont for his laser-like focus.”
CTFK President Matthew L. Myers, by contrast, was aghast.
“How in the world can any public official welcome a company whose main product kills when used as intended and contributes to over 8 million deaths worldwide each year?” he said in a statement.
“The 200 corporate jobs promised by Philip Morris International pale in comparison to the 4,900 Connecticut residents who die each year from smoking and the 56,000 Connecticut kids alive today who will ultimately die prematurely from smoking. That’s in addition to the millions sickened and killed worldwide by Philip Morris’ products each year. Far from helping to create a thriving business climate, Philip Morris International is in the business of selling products that addict, sicken and kill. They should not be welcomed anywhere.”
PMI’s new headquarters are expected to be operational by summer 2022.
June 23, 2021
Wilson White Joins Vector Group Board

Photo: tadamichi
Vector Group has appointed technology industry veteran Wilson L. White to its board of directors, effective immediately. White currently serves as senior director of government affairs and public policy at Google. With White’s appointment, Vector Group’s board expands to 10 directors.
“With many years of experience in the technology industry, including government relations and legal expertise, Wilson brings to the board a unique skillset that will further strengthen Vector Group’s commitment to staying at the forefront of our business’ rapidly evolving digital environment,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “Wilson is a results-oriented leader and collaborator, and we are thrilled to welcome him to our board of directors.”
“I am honored to join Vector Group’s board of directors and look forward to working with this talented team to advance the company’s goals for the benefit of all of its stakeholders,” said White.
In his current role at Google, White is responsible for managing a global team focused on advising senior product leadership on government affairs and public policy for the company’s core business units as well as developing and executing external advocacy initiatives on artificial intelligence, privacy and security, competition and other issue areas.
Prior to assuming this role in 2013, White served as a patent litigation attorney on Google’s legal team and was previously a patent litigator for the intellectual property practice of Kilpatrick Townsend & Stockton.
June 23, 2021
WHO Details “Attempts to Avoid Regulation”
Photo: Olrat
The World Health Organization has published a report detailing what it describes as attempts by manufacturers to avoid regulation of e-cigarettes and heated-tobacco products.
Titled “Litigation relevant to regulation of novel and emerging nicotine and tobacco products: comparison across jurisdictions,” the report offers governments examples of the legal arguments that the industry has used in attempts to minimize regulation as well as how courts have addressed those arguments.
The emergence of products such as heated-tobacco products (HTPs) and electronic nicotine-delivery systems (ENDS) and their market growth has raised questions about how they should be regulated and how that regulation might affect comprehensive tobacco control.
The WHO previously published its position on regulation of these products but has not addressed legal issues, such as how those regulations are being challenged in different jurisdictions. The new report and the accompanying case summaries close this gap and provide the facts, discussion of legal issues, arguments advanced and the reasoning of the courts.
The key messages highlighted in the publication are:
ENDS and HTP manufacturers attempt to avoid products being regulated so as to fall within regulatory or legislative gaps.
Manufacturers can be expected to deploy arguments concerning the relative risk of different product categories and the need for coherent regulation along a continuum of risk.
Not all courts are receptive to arguments about relative risk, either because regulations are justified by reference to absolute risk or because the concept of relative risk must be judged at the population level and taking into account factors beyond relative toxicity.
Technological advances employed for the manufacture of novel and emerging nicotine and tobacco products will raise questions of whether a product falls within the ambit of the national legislation of the country.
There are relatively few cases addressing misleading marketing of ENDS, or enforcing restrictions on advertising, promotion and sponsorship, but important cases have been decided, including on how social media posts may constitute advertising and on whether advertising of an HTP device also constitutes advertising of a tobacco product.
June 22, 2021
Kaival Brands Reports Second-Quarter Results
Kaival Brands Innovations Group reported revenue of $18.1 million for its fiscal second quarter, which ended April 30, 2021.
The company also received two significant Bidi Stick orders with a combined value of $41.6 million. According to Kaival Brands CEO Niraj Patel, these orders represent some of the largest individual orders since the company started business. “We believe [they] are indicative of our robust pipeline for the innovative Bidi Stick and our shift to large wholesalers and distributors versus smaller retailers,” he said in a statement.
“This shift in strategy also helps us remain an industry leader in our effort to continually exceed Prevent All Cigarette Trafficking (PACT) Act compliance requirements. The Bidi Stick experience is unrivalled as evidenced by our leading market share within the ENDS category,” said Patel.
While the potential contract values of additional national retailers are significantly higher than those of smaller retailers and wholesalers, the process to navigate these contracts is more onerous and time consuming, according to Kaival Brands. However, Patel believes such contracts are worth the investment because the company expects more large orders to follow.
Kaival Brands recently received approval to market and sell Bidi Vapor products in 11 countries. Despite Covid-19 related delays in building its international infrastructure, the company is confident it soon will be able to launch the Bidi Stick in the U.K. as well.
Kaival Brands is also enthusiastic regarding the opportunity for its Bidi Pouch, which has been developed without Swedish Match intellectual property.
June 22, 2021
PMI Moves its Head Office to Connecticut

Photo: adempercem
Philip Morris International will relocate its corporate headquarters to Connecticut from New York. The new headquarters is expected to be operational by summer 2022.
“Connecticut offers a valuable mix of technological know-how, future-forward thinking and an open-minded approach to problem-solving,” said Jacek Olczak, CEO of PMI, in a statement. “We consider it an ideal location for our new U.S. head office, where we will be working to more quickly achieve our vision of a smoke-free future. We are excited about what the state has to offer our company, our employees and their families—and we very much look forward to integrating into the community in a meaningful way.”
“We are amid a profound transformation at PMI,” continued Olczak, “and our new base in Connecticut will serve to accelerate our progress. Beyond replacing cigarettes with better alternatives, we intend to draw on our expertise in life and medical sciences to develop solutions in areas that include respiratory drug delivery and botanicals. Through our product innovations, sustainability leadership, people-centered employment practices and community involvement, we intend to be a source of pride for the state.”

Connecticut offers a valuable mix of technological know-how, future-forward thinking and an open-minded approach to problem-solving.
Jacek Olczak, CEO, PMI
The new office—which is also PMI’s headquarters—will house the Americas teams and members of other corporate functions. PMI’s Operations Center will remain in Lausanne, Switzerland, to continue to support the business across the globe. The company employs a workforce of more than 71,000 worldwide.
The move, which was facilitated with the support of Connecticut Governor Ned Lamont’s office, will bring approximately 200 jobs to the state. “We are excited to welcome PMI to the state of Connecticut, showing once again that our state is a growing and thriving ecosystem for businesses,” said Lamont.
June 22, 2021
Smuggling Prompts Call for Monitoring Officers

Photo: Tobacco Reporter archive
The Fair-Trade Independent Tobacco Association (FITA) has called for stronger monitoring of law enforcement officers following the arrest of members of the South African National Defense Force for allegedly transporting illicit cigarettes.
Two Defense Force members were arrested along with a civilian, who is believed to be an illegal immigrant, while driving an army vehicle full of illicit cigarettes set to be delivered to an unidentified buyer in Musina, according to Eyewitness News.
“As an organization, we have long been vocal about corrupt law enforcement agents and officials at our border posts who play a substantial role in the smuggling of illicit cigarettes via our various border posts,” FITA wrote on its website.
“The latest incident, as shocking as it is, affirms our long-held view that the criminal syndicates behind the rampant smuggling of cigarettes into the country can only succeed with the help of corrupt law enforcement agents.
“We call on the various bodies in our criminal justice system responsible for the investigation, prosecution and adjudication of matters such as this to ensure that justice is administered and that the sovereignty and integrity of this country is protected.
“Incidents of this nature undermine our national security and embolden the criminal syndicates responsible for these acts, which, amongst other things, rob our fiscus of billions.
“We also call on all law enforcement agencies to implement stronger measures to monitor the conduct of their members while on duty. The illicit trade in cigarettes and other goods cannot flourish with the aid of corrupt law enforcement agents. We have of late been encouraged by the great work being done by various law enforcement agencies in rooting out the illicit trade in cigarettes, and we hope that they can rid themselves of these rotten apples who are putting a black mark on all these efforts.”
June 21, 2021
Critics Lambast Canada’s Flavor Ban

Photo: Deyan
Health advocates and vapor industry groups criticized Canada’s proposal to ban all flavored vaping products except for tobacco, mint and menthol. Published June 19 in the Canada Gazette, the draft legislation was criticized for falling short by tobacco control advocates and for going too far by the Canadian Vaping Industry Association (CVA).
The CVA warned that if the flavor ban is implemented, it may push hundreds of thousands of consumers back to smoking or to the black market. “There is mounting evidence that flavors reduce cravings and increase smoking cessation success,” the organization wrote in a press note. “Research from Yale School of Public Health finds that smokers that quit using a flavored product are 2.5 times more likely to be successful.”
“We have repeatedly shared the science on vaping,” said Darryl Tempest, executive director of the CVA. “Regulators are aware of the important role flavors play in the adoption of vaping by smokers. A flavor ban will reduce the appeal of the product and will sentence many smokers to their death. There is sufficient data from regions with flavor bans to provide a clear understanding of the consequences. Flavor bans do little to protect youth and instead increase smoking rates and strengthen the black market.”

A flavor ban will reduce the appeal of the product and will sentence many smokers to their death.
Darryl Tempest, executive director, CVA
ASH Canada, by contrast, described the decision to exempt mint and menthol from the flavor ban as an unacceptable concession to the vaping industry.
“The proposed regulations will not adequately protect Canadian youth from flavored vaping products” said Les Hagen, executive director of ASH, in a statement. “Menthol is the second most popular flavor among youth vapers. A partial ban on flavored vaping products in the U.S. resulted in massive switching to menthol flavored products. We expect a similar result in Canada if these regulations are approved.”
“There is no scientific justification for exempting menthol vaping products,” says Flory Doucas, co-director and spokesperson for the Quebec Coalition for Tobacco Control. “Menthol is the second most popular flavor among youth, tied with mango. We know that flavors are one of the main factors that attract young people to vaping, causing all kinds of health risks in addition to being one of the most addictive substances on the planet.”
The health groups decried the influence of the vaping industry on the debate. The CVA has been the most active of all lobbies on Parliament Hill in May, wrote ASH, citing The Lobby Monitor.
Over 400,000 Canadian youth are using vaping products, according to Health Canada’s latest survey conducted in 2019.
Stakeholders can comment on Canada’s draft flavor regulations until Sept. 2, 2021.
Health Canada is also publishing new restrictions on the nicotine concentration in vapor products. These regulations set a maximum nicotine concentration of 20 mg per mL in vaping products to make them less appealing to youth. The regulations also prohibit the packaging and sale of vaping products if the nicotine concentration of the products exceeds this limit. Manufacturers must adhere to this limit by July 8, 2021; retailers may not sell products that exceed this limit after July 23, 2021.
June 21, 2021
Nicotine Forum Focuses on Harm Reduction

Photo: alpegor
Policymakers in public health and tobacco control need to listen to both the science on tobacco harm reduction and the experiences of consumers who are benefiting from it every day. Ideology must be set aside to prioritize progress toward the common goal of ending smoking. Those were some of the messages conveyed during the Global Forum on Nicotine (GFN), which took place June 16–18 in Liverpool, U.K.
Gerry Stimson, Emeritus Professor at Imperial College London and a founder of the GFN, said that much of what she has seen and heard during the event was encouraging.
“It feels as though we’re on the right trajectory,” he said. “Consumers all over the world are becoming aware of the opportunities offered by safer nicotine products, and innovations in the market will, I believe, lead to the eventual obsolescence of combustible cigarettes,” she said. “The question is how to speed up the process and scale up so that tobacco harm reduction reaches all smokers, everywhere, as quickly as possible.”
Multiple panel discussions took in subjects ranging from safer nicotine product regulation, tobacco harm reduction in low-income to middle-income countries and orthodoxy and dissent in science. Speakers’ prerecorded presentations for the panel sessions will remain available online at the conference website.
Three keynotes were delivered to honor Michael Russell, a psychiatrist, research scientist and pioneer in the study of tobacco dependence and the development of treatments to help smokers quit. Russell’s observation in the British Medical Journal in 1976 that “people smoke for nicotine, but they die from the tar” remains highly influential within the field.
The speeches honoring Russel focused on harm reduction and were given by Fiona Patten, leader of Australia’s Reason Party; Jon Fell, founder of investment company Ash Park; and Derek Yach, president of the Foundation for a Smoke-Free World.
“In Australia, governments have consistently stated that drug use must be treated as a health issue not a criminal one. But when it comes to nicotine, they are actively making criminals out of users,” Patton said. “For decades, they ignored the science about the dangers of smoking, but today, they argue that there is not enough science to sanction alternative nicotine products.”
GFN does not receive any sponsorship from manufacturers, distributors or retailers of nicotine products, including pharmaceutical, electronic cigarette and tobacco companies. Participants include consumers, policymakers, academics, scientists and public health experts alongside representatives from manufacturers and distributors of safer nicotine products.
The event organizers believe that dialogue and strategic engagement of all stakeholders involved in tobacco and nicotine use, control and production are the only way to effect true, sustainable change—both to industry practices and the public health outcomes related to smoking.
June 21, 2021