Category: News This Week

  • BAT Recognized for Supply Chain Excellence

    BAT Recognized for Supply Chain Excellence

    Photo: BAT

    BAT has been ranked 19th in the Gartner Supply Chain Top 25 for 2021—marking the first time BAT has made the top 20.

    In its second consecutive year in the Gartner rankings, BAT has moved up two places from 21st in 2020. The Gartner rankings recognize companies globally who have demonstrated excellence in supply chain management, effectively navigating through the Covid-19 landscape.

    As BAT evolves into a multi-category consumer products and brands business, its transformation is being powered by digital technology. This allows BAT to respond with greater agility and resilience to the complexity of its growing new category portfolio supply chain. According to the company, this transformation is underpinned by BAT’s commitment to put ESG front and center of its operations, with sustainability firmly embedded into its supply chain management strategies.

    To move up the ranks during a global pandemic is testament to the hard work and excellence of BAT’s operations teams across the world.

    “We are honored to have our supply chain operations recognized in the Gartner Supply Chain Top 25 rankings for the second year in a row,” said Zafar Khan, BAT’s group operations director, who joined the company in February, in a statement. “To move up the ranks during a global pandemic is testament to the hard work and excellence of BAT’s operations teams across the world.”

  • Revolutionary HnB Device Set for Launch

    Revolutionary HnB Device Set for Launch

    Photo: Podya Lifestyle and Wellness

    After six years of development, Poda Lifestyle and Wellness is ready to bring its revolutionary heat-not-burn (HnB) product to the masses, according to company founder and CEO Ryan Selby. In a letter to shareholders, Selby detailed the company’s recent accomplishments and shared his plans.

    Poda was founded in January 2015 with the vision of creating a superior HnB product. The company set out to address a major pain-point in all HnB systems: cleaning. After six years of designing and perfecting the technology, it came up with a product that delivers a robust, flavorful and consistent user experience, according to Selby. “Poda is now essentially the only company in the world that can make a closed-ended HnB cigarette,” he says. Its Beyond Burn pods have been patented in more than 65 countries.

    In addition, the company developed a heat-tolerant biodegradable material made from the cell walls of sustainably harvested plants. “This naturally derived and low-cost material allows us to produce our patented Beyond Burn Poda Pods not only incredibly efficiently but also in an ethical and sustainable manner,” says Selby. Poda has filed for patent protection for the proprietary biodegradable plant cellulose materials used to make its closed-ended HnB cigarettes and the proprietary methods for manufacturing them.

    The company’s tobacco-free Beyond Burn Poda Pods contain a proprietary blend of tea leaves and synthetic nicotine that delivers the satisfaction and sensory experience of ordinary smoking without the smoke and without the cleaning.

    Recently, Poda executed a binding letter of intent with ESON with the intent of launching its products in China. Earlier this month, tobacco industry veteran Juan Manuel (“Jon”) Ruiz joined Poda’s strategic advisory board. A key top-level executive at Philip Morris International, Ruiz was around during the time when PMI was internally developing its heat-not-burn products. “The experience and expertise that Jon brings from the fast-moving consumer goods market is of exceptional value to Poda,” said Selby.

    We are now ready to scale our production capacities to virtually any production volume.

    Less than two months ago, Poda listed its shares on the Canadian Securities Exchange and the Frankfurt Securities Exchange, and the company is currently waiting for final approval to have its shares listed on the OTCQB exchange in the U.S. Down the road, the company aims to “uplist” to the NASDAQ and other major global exchanges, according to Selby.

    Meanwhile, Poda’s pilot manufacturing plant is fully operational and is turning out over 400,000 closed-ended HnB cigarette units per month. “We built this pilot facility to prove out each of our manufacturing technologies, and I am pleased to report that we are now ready to scale our production capacities to virtually any production volume,” said Selby.

    Over the coming months, Poda will be aggressively pursuing distribution and white-labelling opportunities with carefully selected partners in strategic locations around the globe.

    “As CEO, it is my responsibility to lead Poda toward our goal of becoming a major player in the global heat-not-burn market,” said Selby. “I know we have a fantastic product, but that on its own is not enough. We must make smart choices and take calculated risks to grow the company as quickly and sustainably as possible.”

  • PMI Campaigns Against Black Market Trade

    PMI Campaigns Against Black Market Trade

    Photo: Tobacco Reporter archive

    Philip Morris International (PMI) has launched a public education initiative titled United to Safeguard America from Illegal Trade to combat black market trade. Supported by a coalition of national and state private and public sector partners, the campaign will provide local officials, law enforcement and thought leaders with information and training programs to help tackle illegal trade and raise public awareness of the depth of the problem as well as the severe consequences inflicted on states and municipalities by black market profiteers.

    The campaign will run through 2021 in eight states facing critical illegal trade issues: Arizona, California, Florida, Illinois, Louisiana, Michigan, Pennsylvania and Texas.

    The coalition’s membership is made up of brand enforcement leaders and other organizations, including Levi Strauss & Co., Procter & Gamble Co. and the U.S. Chamber of Commerce.

    “Illegal trade is a major problem that fuels serious organized criminal networks and damages our economy. No matter the commodity, these criminals will seize any opportunity to exploit markets and communities to bolster their nefarious activities,” said Martin King, CEO of PMI America. “PMI is pleased to be joined by so many cross-sector partners who are leading the fight against illegal trade and the black market criminals profiting at the expense of Americans’ security.”

    Illegal trade is a major problem that fuels serious organized criminal networks and damages our economy.

    Counterfeit and smuggled goods pose serious threats in many states, according to PMI. “The situation has only been exacerbated by the Covid-19 pandemic, with criminals seizing on opportunities to traffic all types of counterfeit and illegal products, including highly demanded personal protective equipment. Since January 2020, online counterfeited goods have jumped nearly 40 percent,” the company wrote in a press release.

    “In today’s hyper-connected world, it’s only through open dialogue, cooperation and the sharing of best practices between parties in the public and private sectors as well as civil society that we can continuously improve and advance efforts against illegal trade and the criminal networks benefiting from it.”

  • PMI Solicits Ideas to Tackle Illegal Trade

    PMI Solicits Ideas to Tackle Illegal Trade

    Photo: Vitezslav Vylici

    Philip Morris International (PMI) is calling for applications for the third funding round of PMI IMPACT, the global initiative supporting projects that aim to reduce or prevent illegal trade and counter its negative consequences for individuals, their families and communities. The third funding round will support a broad range of projects designed to tackle the multifaceted and multinational illicit trade—ranging from illicit tobacco products and other consumer goods to counterfeiting of pharmaceuticals and electronics—across different geographies. Now open for submissions, applicants from public, private or nonprofit organizations, including governmental organizations, international organizations, associations, academic institutions and private companies, are encouraged to submit their project proposals.

    “Illicit trade knows no borders, and effective measures are needed to fight this international threat, which is a top priority for PMI as it undermines all our efforts toward delivering a smoke-free future—a future that can one day be without cigarettes,” said Alvise Giustiniani, vice president of illicit trade prevention, in a statement. “The pandemic has also impacted supply chains, border controls and cross-border interactions, and now, more than ever, we need programs like PMI IMPACT that exchange expertise and bring together organizations, ideas and solutions to eradicate illegal trade.”

    The pandemic has impacted supply chains, border controls and cross-border interactions, and now, more than ever, we need programs like PMI IMPACT that exchange expertise and bring together organizations, ideas and solutions to eradicate illegal trade.

    Applicants can be based anywhere; however, all proposals must address the funding round theme and focus on one of the following topics: border control; capacity building; restorative justice and victims’ protection; network engagements, awareness building and international cooperation; Covid-19 and the threat of illicit trade.

    Bringing innovation and technological advancement in the fight against contraband and counterfeited goods is essential, especially in the midst of the Covid-19 pandemic, according to PMI. This is why PMI IMPACT will be open to projects aimed at limiting the threats of counterfeited and substandard vaccines, medicines, medical supplies and personal protective equipment.

    Interested third parties can apply for the third funding round before one of the three deadlines for submission of applications: Sept. 15, 2021; Feb. 15, 2022; and Aug. 15, 2022.

    “PMI IMPACT offers a platform for organizations to bring resolutions to tackle the problematic reality of illegal trade,” said Navi Pillay, human rights advocate and member of the PMI IMPACT expert council. “We are looking forward to evaluating the applications in the third funding round—the level of interest the initiative receives is truly remarkable. It is promising to see so many fantastic organizations working resolutely to fight illicit trade.”

  • FDA Tobacco Authority Deemed Constitutional

    FDA Tobacco Authority Deemed Constitutional

    Photo: Tierney

    A lawsuit challenging the constitutionality of the U.S. Food and Drug Administration’s (FDA) authority over vapor products has failed following the Supreme Court’s refusal to review a lower court’s ruling on the issue.

    The suit was filed on Aug. 19, 2019, by Big Time Vapes and United States Vaping Association in the U.S. District Court for the Southern District of Mississippi.

    The suit challenged the Tobacco Control Act, claiming that Congress unconstitutionally ceded its legislative authority to the FDA when it gave the agency the power to “deem” products as tobacco products that were not specified in the 2009 legislation.

    The complaint was dismissed in December 2019 and failed on appeal in the Fifth Circuit Court of Appeals last year. On June 25, 2020, the Court of Appeals found that Congress’ delegation of authority to the Secretary of Health and Human Services to deem additional products subject to the Tobacco Control Act was constitutional, upholding the district court’s decision.

    The Supreme Court referred the case back to a lower court. Since the court did not accept the petition, the lower court’s decision stands.

    The petition is the first case involving e-cigarettes to be heard by the Supreme Court, which accepts only between 100–150 of the more than 7,000 cases that it is asked to review each year, according to its website.

  • BAT: Sales of Noncombustibles Up

    BAT: Sales of Noncombustibles Up

    Photo: BAT

    BAT added more than 1.4 million noncombustible product consumers in the first quarter of 2021 to reach a total of 14.9 million, CEO Jack Bowles announced in a trading update.

    “We are investing and building strong, fast-growing international brands in each segment, rapidly accelerating our reach and consumer acquisition, thanks to our digitalization and our multi-category consumer-centric approach, supported by the right resources and products and our agile organization,” said Bowles.

    “Our portfolio of noncombustible products is tailored to meet the needs of adult consumers. We are growing New Categories at pace, encouraging more smokers to switch to scientifically substantiated reduced-risk alternatives.”

    The company’s New Category products are now sold in 74 markets across 53 countries. Its Vuse/Vype vapor devices have been gaining value share in all Top 5 markets. Vuse is even approaching global leadership in vapor, reaching 31.4 percent category value share in the Top 5 vapor markets year-to-date in April, according to Bowles.

    We are growing New Categories at pace, encouraging more smokers to switch to scientifically substantiated reduced-risk alternatives.

    BAT’s Glo tobacco-heating product (THP) recorded positive volume share momentum in many markets, including Japan. The device achieved 16.2 percent category volume share in the Top 9 THP markets year-to-date in April.

    According to Bowles, BAT has also been consolidating its international volume share leadership in Modern Oral, with strong Velo volume share growth in the U.S. The company’s category share of Modern Oral in the Top 5 markets reached 40.2 percent year-to-date in April.

    BAT’s combustibles segment was characterized by strong pricing and robust volume, the company said. Group value and volume share were both up 10 base points year-to-date, with full-year industry volume expected to be down about 3 percent.

    For 2021, BAT now anticipates constant currency revenue growth of above 5 percent, ahead of its 3 percent to 5 percent guidance.

  • 22nd Century Keen to Maximize Opportunities

    22nd Century Keen to Maximize Opportunities

    Photo: felix brönnimann

    22nd Century Group has announced new initiatives to strengthen and maximize revenue opportunities in its hemp/cannabis franchise. Included in these developments are strategic partnerships with two plant breeders in the northern and southern hemispheres, providing the company with year-round growing capabilities, close partnership activities with Aurora Cannabis and the establishment of a newly created Canadian subsidiary.

    “The addition of breeders who specialize in alkaloid-based plant cultivation to our network of strategic partnerships provides us with the competitive edge to commercialize our second-generation IP and technologies,” said James A. Mish, CEO of 22nd Century Group, in a statement. “As cannabis regulation evolves, we believe that companies able to control the traits and consistency of the plants will command a premium price and margin in the marketplace. 22nd Century is well positioned to capitalize on the tremendous potential in the global legal cannabis space by creating hemp/cannabis plants that have stable, specific cannabinoid levels at commercial scale for various end-use markets.

    “As a matter of preparedness, earlier we announced a $40 million registered direct offering through Cowen and Company,” Mish continued. “Cowen is well-known as a pioneer in the cannabis institutional markets, and with this registered direct placement, 22nd Century is now squarely positioned in the mainstream of the cannabis equity space. Proceeds from this offering will be used as needed for future strategic growth opportunities as our hemp/cannabis market activity continues to increase. With the Special Equities Group as our financial advisor on this transaction to the company, we now have ample financial flexibility for this franchise as we advance our revenue-generating initiatives later this year.”

    Incorporated in April 2021, 22nd Century’s Canadian subsidiary will serve as a base for the company’s expanded activities in tobacco, hemp/cannabis and its yet-to-be announced third franchise.

    22nd Century Canada will also serve as a hub for expanded reduced-nicotine tobacco activities in Canada, to include a possible future launch of VLN and the potential expansion of its reduced nicotine tobacco-growing programs.

  • MPs Urged to Champion Vaping During Debate

    MPs Urged to Champion Vaping During Debate

    Photo: Gerry

    The U.K. Vaping Industry Association (UKVIA) is asking Members of Parliament to champion the public health benefits of vaping as the Department of Health and Social Care looks to publish a new Tobacco Control Plan (TCP) later this year to support the government’s smoke-free 2030 ambition.

    The U.K. House of Commons will debate the “Recommendations for the forthcoming Tobacco Control Plan” on June 10.

    According to the UKVIA, the upcoming debate is a huge opportunity to refocus efforts in ensuring that England achieves its aim of becoming smoke-free by 2030. The U.K. is estimated to have a smoking prevalence of 14.1 percent, and the forthcoming Tobacco Control Plan is a chance to see this number decrease further, particularly in light of an uptake during the pandemic period, the association writes in template letter to local MPs.

    The UKVIA letter urges MPs to make the following points during the debate:

    • The government must seize the opportunity presented by the U.K. having left the European Union. With the ongoing review of the Tobacco and Related Products Regulations (TRPR) and the forthcoming TCP, the government has the opportunity to diverge from EU law governing tobacco and nicotine policy to level up on health inequalities across the U.K. Independence allows for U.K. regulations to stay relevant, be easily adapted to changing consumer trends and any market and technological developments, with greater ease and less bureaucracy.
    • The government’s forthcoming TCP should be based on the significant and growing body of evidence showing vaping to be an effective alternative for smokers looking to quit and should cement the concept of harm reduction, placing the U.K. as the global leader in tobacco harm reduction. Vaping is twice as effective as other nicotine-replacement therapies, such as gum and patches. Research from University College London has found that e-cigarettes, in one year alone, helped an additional 50,000–70,000 smokers in England quit. Despite the overwhelming and growing evidence in support of e-cigarettes, perceptions of harm from vaping among smokers are increasingly incorrect and out of line with the evidence. This is despite ONS data from Great Britain showing that over half of smokers want to quit.
    • Misinformation and misperceptions about the relative risk of e-cigarettes must be challenged at every opportunity. To do so, the government must work with industry leaders to develop a series of policies that can help the vaping industry communicate directly with existing adult smokers. It is suggested that approved health claims and switching messages, alongside nicotine health warnings, should be available to vape manufacturers and retailers to communicate the facts about vaping. Such claims and messages could be used on both device and e-liquid packaging as well as on posters and leaflets. Similar proposals have been made by the governments of New Zealand and Canada.
    • In light of the University of East Anglia’s study to trial e-cigarettes in NHS A&E departments, greater support is also needed for medical practitioners. The new TCP should support medical professionals by ensuring that clinicians are signposted to the latest clinical evidence on e-cigarettes and that local stop-smoking clinics adopt a consistent approach to the advice given to smokers looking to switch to less harmful alternatives and/or quit smoking combustible cigarettes.

    “Whilst on one hand the current regulations and the existing TCP have allowed the vaping industry in the U.K. to flourish, on the other, they have hindered the ability of the vaping sector to promote vaping as an effective way of switching to a less harmful alternative, thereby preventing the government achieving the aims set out in the Tobacco Control Plan,” the UKVIA wrote. “Parliamentarians should therefore be advocating for fair and proportionate policies and regulations of e-cigarettes to help reduce inequalities and improve public health.”

  • Crafton Joins Swisher as VP of Innovation

    Crafton Joins Swisher as VP of Innovation

    Zack Crafton (Photo: Swisher)

    Swisher has appointed Zack Crafton as vice president of corporate innovation. In this position, Crafton will be working to diversify Swisher’s products and brands.

    “This is a significant appointment for our company, and we welcome Zack’s wealth of innovation experience and leadership that will move Swisher to drive the implementation of our strategic objectives and expand our portfolio of products,” said John Miller, president and CEO of Swisher, in a statement. “Our first corporate innovation VP reflects our commitment to growth and the future of Swisher.”

    Crafton has extensive experience and leadership in categories including wine, beer, cannabis and regulated e-commerce. Before joining Swisher, Crafton was CEO of the first online dispensary in California’s recreational cannabis market, paving the way for emerging cannabis brands and direct-to-consumer platforms across the cannabis industry. Prior to entering the California cannabis market, Crafton helped launch NakedWines.com where he built the largest online winery in the world as chief operating officer.

    We welcome Zack’s wealth of innovation experience and leadership that will move Swisher to drive the implementation of our strategic objectives and expand our portfolio of products.

    In 2020, Swisher announced a new corporate identity, purpose, mission, vision and strategic framework to develop new businesses, products and experiences while building on the legacies and strengths of existing products.

    “I’m thrilled to join Swisher, and I look forward to building a robust innovation platform, unique capabilities and a durable plan to support Swisher’s growth and diversification goals into innovative categories,” said Crafton. “This is an exciting time where we look to diversify Swisher’s product and capability portfolio while helping to shape the future for adult consumers.”

  • BAT Laments Inaction Against ‘Menthol’

    BAT Laments Inaction Against ‘Menthol’

    Photo: kasetch

    BAT has admonished Ireland’s tobacco regulator for failing to take action against competitors selling new products that may be in breach of the EU ban on menthol cigarettes, reports The Irish Times.

    There is “no rationale for the HSE to further delay” its action against tobacco companies that may be breaching the ban, BAT wrote in a letter to the Health Service Executive (HSE) this week. “We are concerned that inaction is leading to more products appearing on the market.”

    The HSE said a year ago that it would investigate tobacco companies for allegedly breaching the Europe-wide ban on menthol flavors, which some have allegedly tried to circumvent with techniques exploiting loopholes while marketing them as menthol substitutes.

    Japan Tobacco International, for example, launched Silk Cut Choice Green, which it admitted still contained traces of menthol. The company insists Silk Cut Choice Green complies with rules because the cigarettes don’t taste or smell of menthol. Philip Morris, the maker of Marlboro, also launched a new brand targeted at smokers of its old Marlboro Green but says the new product is legal and menthol-free. BAT did not launch a menthol substitute.

    Despite its year-long investigation, the HSE’s Tobacco Control Office has yet to issue any findings.

    Ireland’s market for the flavored cigarettes was worth up to €250 million ($304.92 million) before the ban came into force last May.

    Tobacco Reporter detailed the industry’s efforts to serve former menthol smokers in the EU with alternative products in June 2020.