Category: News This Week

FDA to Discuss Scientific Reviews

Photo: Grandbrothers
The U.S. Food and Drug Administration Center for Tobacco Products (CTP) will host a virtual meeting June 11 from 13:00 to 15:30 Eastern Daylight Time. The meeting will discuss the scientific review of tobacco marketing applications received by Sept. 9, 2020. It will focus on the application intake process, review progress and allocation of review resources. There will be time allotted for audience questions as well.
Matt Holman
The meeting will feature a presentation from CTP Office of Science Director Matt Holman and include a question-and-answer session. Other Office of Science staff participating in the meeting include Todd L. Cecil, deputy director for regulatory management; Crystal Allard, director for the division of regulatory science and informatics; Joanna C. Randazzo, D.C., acting chief for the science policy branch; and Cristi Stark, director of the division of regulatory project management.
The CTP Office of Science is responsible for identifying, developing and enhancing the science related to tobacco products, their use, and the resulting morbidity and mortality so that regulatory decisions will have the greatest impact on improving public health.
The Office of Science provides the scientific support for regulations and guidance, reviews tobacco product applications, evaluates the knowledge basis for regulatory decisions and carries out research to fill the gaps in scientific knowledge related to tobacco product regulation.
For more information, click here.
May 14, 2021
Graphic Packaging Acquires AR Packaging

Photo: Alexas Fotos | Pixabay
Graphic Packaging Holding Co. will acquire AR Packaging Group, Europe’s second largest producer of fiber-based consumer packaging, for approximately $1.45 billion in cash.
The combination enhances Graphic Packaging’s global scale, innovation capabilities and value proposition for customers throughout Europe and bordering regions. With a broad set of industry-leading packaging solutions, design expertise and expanded geographic reach, the combined company will be uniquely positioned to capture continued organic growth opportunities across existing and new global customers and markets.
The proposed acquisition of AR Packaging is expected to add $1.1 billion in annual sales and $160 million in annual adjusted EBITDA. In addition, the combination is expected to drive total synergies of $40 million over 36 months following close. The deal is expected to be immediately accretive to the company’s earnings per share and cash flow.
“AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe,” said Michael Doss, Graphic Packaging’s president and CEO, in a statement.
“Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design.
We are pleased to welcome the AR Packaging team as we work together to advance our commitment to sustainable packaging solutions in support of the move to a more circular economy.
Michael Doss, president and CEO, Graphic Packaging
“The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally. We are pleased to welcome the AR Packaging team as we work together to further advance our commitment to sustainable packaging solutions for global consumers in support of the move to a more circular economy.”
“I am proud of the progress we have made in establishing a clear strategy and building AR Packaging into a respected provider of packaging solutions,” said AR Packaging President and CEO Harald Schulz. “Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner.
“The ability to leverage beneficial value chain integration, from paperboard manufacturing to carton converting, provides increased possibilities to offer sustainably optimized solutions to our customers. Our team looks forward to joining with the Graphic Packaging team to become the premier global provider of sustainable fiber-based packaging solutions.”
May 14, 2021
Counterfeit Operation Dismantled in France

Photo: Europol
French law enforcement officers have arrested five individuals and seized 250,000 counterfeit cigarettes in a series of raids in Nantes.
This action follows an earlier one on April 9, which saw seven other members of the same organized crime group arrested in the cities of Nantes, Rodez and Montpellier. On this occasion, close to 5 tons of counterfeit cigarettes were seized alongside €37,000 ($44,720) in cash.
This organized crime group received the illegal cigarettes from two criminal networks based abroad, arranged for their storage in various cities in France and then managed their subsequent distribution through several criminal wholesalers—composed mostly of Georgian, Armenian and Ukrainian nationals—onto the French black market.
The same organized crime group was also involved in the management of payments and the corresponding financial flows. This criminal group has now been fully dismantled, according to Europol.
Since the start of the investigation, the French investigators collected evidence that more than 75 tons of counterfeit cigarettes were imported and distributed throughout France for a loss to the French budget estimated close to €22 million.
Europol’s Analysis Project Smoke supported this investigation and organized coordination meetings with the national investigators involved to discuss procedural requirements and identify a way forward.
Its experts also organized the intensive exchange of information needed to prepare for the action days in France.
This investigation was carried out in the framework of the European Multidisciplinary Platform Against Criminal Threats.
May 13, 2021
Ireland: Forest slams outdoor smoking ban

Photo: be free
Forest Ireland has slammed a government health plan that aims to extend the smoking ban to outdoor areas.
“There is no justification for banning smoking in outdoor spaces,” said John Mallon, spokesman for Forest Ireland, in response to the Healthy Ireland Strategic Action Plan 2021–2025, which was published May 11. “Smoking in the open air poses no health risk to anyone other than the smoker. Coming out of the pandemic, the last thing the hospitality industry needs is the threat of smoking being prohibited outside pubs, cafes and bars.”
The action plan would “promote and oversee implementation of the Tobacco Free Ireland Policy,” which includes “progress[ing] and expand[ing] the creation of tobacco-free spaces in community settings,” along with other targeted actions.
“Tobacco is a legal product, and smokers have a right to light up in outdoor spaces without restrictions designed to force them to quit,” Mallon said in a Forest press note. “The war on smoking has become a war on ordinary people who just want to be left alone to live their lives as they choose without excessive government intervention.”
May 13, 2021
BAT to Produce HNB Products in Croatia

Photo: burnel11
British American Tobacco (BAT) will invest HRK200 million ($32.07 million) to produce heated-tobacco products (HTPs) at its factory in Kanfanar, Croatia, reports Total Croatia News.
The multinational revealed its plans during a May 12 visit to its facility by Prime Minister Andrej Plenkovic.
“By expanding production in Kanfanar and opening a hub in Rijeka, we are continuing with BAT’s significant investments in Croatia,” said BAT Adria director Zvonko Kolobara.
“With the introduction of production lines for new product categories, Croatia is additionally strengthening its position on the global map of production sites in the tobacco industry. We are continuing to expand our selection for consumers in Croatia.”
The increased capacity in Kanfanar will help BAT meet growing demand for HTPs in Europe and northern Africa.
Plenkovic expressed satisfaction at BAT’s continued investments in Kanfanar.
“The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy,” he said.
“The company employs 1,600 people, and another 800 cooperate closely with BAT and make a living that way. The investment plans have been coordinated with their headquarters in London, and all the employees at the factory will be satisfied while the entire economy of Istria County will benefit from BAT’s operations.”
The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy.
Andrej Plenkovic, prime minister, Croatia
In June 2020, BAT suggested it might relocate its Kanfanar factory to another country due to unfavorable business conditions. The government then embarked on a campaign to keep the multinational in Croatia.
Plenkovic stressed that the new investment reflected Croatia’s good business climate, not government pressure.
May 13, 2021
Malawi President Urges Diversification

Photo: Taco Tuinstra
Malawi’s president, Lazarus Chakwera, urged a switch to high-growth crops like cannabis, stating that tobacco, the country’s leading foreign exchange earner, was in terminal decline, reports Reuters.
Chakwera said tobacco was expected to earn less than $200 million in 2021, below previous earnings of $350 million.
“The inconvenient truth … is that while Malawi has come a long way by relying on tobacco as our … largest single crop contributor to our GDP, this reliance is now seriously threatened by declining demand worldwide,” Chakwera said. “Clearly, we need to diversify and grow other crops like cannabis, which was legalized last year for industrial and medicinal use.”
Last February, Malawi’s parliament passed a bill legalizing cultivation and the processing of cannabis for medicines and hemp fiber used in industry. It did not decriminalize recreational use, however.
The agriculture ministry will “search for a basket of alternative crops so that by 2030, Malawi can do away with its reliance on tobacco,” according to Chakwera.
Zimbabwe also recently changed regulations to encourage investment into cannabis. Zimbabwe’s new rules will allow investors to wholly own cannabis businesses instead of partnering with the government. Cannabis will now also be allowed to be produced anywhere in Zimbabwe instead of just in restricted locations. According to a government statement, investors can keep export earnings in U.S. dollars for up to four years.
May 13, 2021
Forum on Nicotine to Convene in Liverpool

Photo: alpegor
KAC Communications will be hosting the Eighth Global Forum on Nicotine (GFN) from June 17–18 at the Crowne Plaza Hotel in Liverpool, U.K. With its theme “The future for nicotine,” the GFN tackles the challenges and controversies, as well as the significant potential, of safer nicotine products. Participants can choose whether to attend in person or online. In-person registration costs £60 ($84.23) for two days, and online registration is free.
A new GFN∙TV online platform will stream broadcast footage of the conference free to viewers around the world, with a new commentary team offering their insights.
The GFN will feature more than 30 speakers from diverse backgrounds, including consumers, advocates, policy experts, public health specialists and medical professionals. All sessions will be live, with speaker presentations available on the GFN website before the event.
“It’s a fallacy that tobacco control and harm reduction are irreconcilable as many believe—they’re complementary,” said Paddy Costall of KAC Communications. “While tobacco control has reduced smoking rates in many places, it’s got its limits. In the U.K. and elsewhere, it’s been shown that access to appropriately regulated safer nicotine products helps people stop smoking.
“At GFN, we offer an inclusive platform to discuss all aspects of nicotine use, and we believe it’s important that no one is excluded from the debate. With one billion smoking-related deaths predicted by the end of this century, it’s time for ideology to make way for pragmatism.”
For more information, visit https://gfn.events.
May 13, 2021
China Announces Cigar Festival in Chengdu

Photo: Chris Frenzel | Pixabay
The 2021 International Cigar Expo (ICE) will take place at the Tianfu International Convention Center in Chengdu, Nov. 8–10, 2021. The event will be hosted by China Cigarette Sales Corp. and China Tobacco International Group.
The organizers include China Tobacco Sichuan Industrial Co., China Tobacco Anhui, Shandong, Hubei Industrials Co., China Tobacco Hubei, Hainan, Sichuan, Yunnan provincial companies, and Shenzhen Tobacco Import and Export Co.
The ICE will focus on premium cigars and related products and boasts an exhibition area of more 10,000 square meters. In addition to the cigar night welcome party and the cigar industry development forum, there will be professional seminars and cigar tastings, among other events. A virtual exhibition platform will demonstrate cigar applications using virtual reality and big data, among other technologies.
The organizers expect more than 10,000 participants. Prominent brands, including Habanos, Davidoff, Bulldog and Scandinavian Tobacco Group, have already confirmed their presence, according to the ICE.
Chengdu is one of the largest cigar markets in China, with a solid industrial base and huge potential for the cigar industry. Moreover, Sichuan Province boasts the largest cigar production base in Asia and is a prominent producer of premium air-cured tobacco.
For more information, visit www.intercigarexpo.com.
May 13, 2021
Altria Elects Kathryn McQuade as Board Chair

Photo: Jakub Jirsák | Dreamstime.com
Altria Group’s board of directors has elected Kathryn B. McQuade to serve as the independent chair of the board effective upon the conclusion of Altria’s 2021 annual meeting of shareholders on May 20, 2021.
“I am thrilled with Kathryn’s selection to be Altria’s next independent board chair,” said Billy Gifford, Altria’s CEO, in a statement. “I believe that her significant expertise, including in finance, business strategy and working within regulated industries, will help advance our focus on moving beyond smoking.”
McQuade, who joined the board in 2012, will be the first woman to serve as Altria’s chair of the board and will oversee a board on which more than 72 percent of its members are women or racially or ethnically diverse.
“I am honored to take on the role of independent board chair for Altria,” said McQuade. “I look forward to continuing to work with the board and Altria’s dedicated leadership team in pursuit of its vision.”
McQuade served as senior advisor of Canadian Pacific Railway, a transcontinental railway in Canada and the United States, from November 2012 to May 2013, after previously serving as executive vice president and chief financial officer of Canadian Pacific from September 2008 until her retirement in November 2012.
McQuade joined Canadian Pacific in June 2007 as executive vice president and chief operating officer. Prior to joining Canadian Pacific, McQuade served as executive vice president-planning and chief information officer at Norfolk Southern Corp. where she spent 27 years in key information technology, strategic planning and finance leadership positions.
McQuade serves as chair of the nominating, corporate governance and social responsibility committee and is a member of the audit, compensation and talent development and executive committees.
Altria’s former independent board chairman, Thomas F. Farrell II, passed away in April 2021. He had planned to retire following completion of his current term and was not standing for reelection to the board at the 2021 annual meeting of shareholders.
May 12, 2021
Zimbabwe Campaigning Against Rogue Buyers

Photo: Taco Tuinstra
The Tobacco Industry and Marketing Board (TIMB) in Zimbabwe has begun a campaign to expose middlemen in the illegal tobacco trade.
These middlemen are said to be traveling to farms where they are offering low prices for tobacco in return for instant payments. According to NewsDay, the middlemen have been working with officers at the tobacco auction floors to sell the leaf at huge margins.
Most of Zimbabwe’s tobacco is produced by small-scale communal farmers who are poorly funded. Ninety-five percent of the tobacco sold through “side marketing” would have been grown under contract with registered financiers.
“We are quite happy about this initiative by TIMB,” said Shadreck Makombe, president of the Zimbabwe Commercial Farmers Union. “As we do away with side marketing, we are bringing in business ethics. We are now conducting business on professional grounds, which is a good development. Even investors will start to have confidence when they want to invest their money. They know that it is secure.”
“This initiative is noble,” he said. “We are encouraging farmers not to be enticed by unscrupulous buyers. If they continuously get arrested and sanctioned in such a manner, side marketing can be limited and probably completely eliminated.”
“For the 2021 tobacco marketing season, the TIMB has embarked on an exercise to name and shame illegal buyers and sellers of tobacco,” said Chelesani Moyo, TIMB spokesperson. “The aim of this exercise is to discourage repeat offending and deter would-be illegal buyers and sellers. So far, 85 illegal buyers and sellers have been fined.”
May 11, 2021