Category: News This Week

  • FDA ‘Intends’ to Ban Menthol

    FDA ‘Intends’ to Ban Menthol

    Photo: esser

    The U.S. Food and Drug Administration has stated its intent to ban menthol as a characterizing flavor in cigarettes and all characterizing flavors (including menthol) in cigars. In a statement released today, the agency said it is working toward issuing proposed product standards within the next year.

    “This decision is based on clear science and evidence establishing the addictiveness and harm of these products and builds on important previous actions that banned other flavored cigarettes in 2009,” the FDA wrote in its press release.

    “Banning menthol—the last allowable flavor—in cigarettes and banning all flavors in cigars will help save lives, particularly among those disproportionately affected by these deadly products,” said acting FDA Commissioner Janet Woodcock.

    “With these actions, the FDA will help significantly reduce youth initiation, increase the chances of smoking cessation among current smokers and address health disparities experienced by communities of color, low-income populations and LGBTQ+ individuals, all of whom are far more likely to use these tobacco products.”

    According to the FDA, there is strong evidence that a menthol ban will help people quit. “Studies show that menthol increases the appeal of tobacco and facilitates progression to regular smoking, particularly among youth and young adults,” the agency stated. “Menthol masks unpleasant flavors and harshness of tobacco products, making them easier to start using. Tobacco products with menthol can also be more addictive and harder to quit by enhancing the effects of nicotine.”

    One study cited by the FDA suggests that banning menthol cigarettes in the U.S. would lead an additional 923,000 smokers to quit, including 230,000 Black Americans in the first 13 to 17 months after a ban goes into effect. An earlier study projected that about 633,000 deaths would be averted, including about 237,000 deaths of Black Americans.

    These flavor standards would reduce cigarette and cigar initiation and use, reduce health disparities and promote health equity by addressing a significant and disparate source of harm.

    “For far too long, certain populations, including African Americans, have been targeted and disproportionately impacted by tobacco use. Despite the tremendous progress we’ve made in getting people to stop smoking over the past 55 years, that progress hasn’t been experienced by everyone equally,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products.

    “These flavor standards would reduce cigarette and cigar initiation and use, reduce health disparities and promote health equity by addressing a significant and disparate source of harm. Taken together, these policies will help save lives and improve the public health of our country as we confront the leading cause of preventable disease and death.”

    The FDA stressed that, if implemented, enforcement of any ban on menthol cigarettes and all flavored cigars will address only manufacturers, distributors, wholesalers, importers and retailers. “The FDA cannot and will not enforce against individual consumer possession or use of menthol cigarettes or any tobacco product,” the agency stated.

    Racial justice groups have expressed concern that by outlawing menthols, the FDA would set the stage for more negative interactions between law enforcement and people of color, who smoke a disproportionate share of menthol cigarettes.

    Earlier this week, the National Newspaper Publishers Association (NNPA), representing more than 200 African American-owned community newspapers from around the United States, and leading Black and Hispanic law enforcement executives, too, sent a letter urging the FDA to keep menthol cigarettes legal.

    In acting on menthol, the FDA granted a citizen’s petition requesting that the agency pursue rulemaking to prohibit menthol in cigarettes, affirming its commitment to proposing such a product standard.

    The 2009 Tobacco Control Act (TCA) did not include menthol in its ban on characterizing flavors in cigarettes, leaving menthol cigarettes as the only flavored combusted cigarettes still marketed in the U.S. The law instructed the FDA to further consider the issue of menthol in cigarettes.

    Since then, the FDA sought input from an independent advisory committee as required by the TCA, and further demonstrated its interest by issuing an Advance Notice of Proposed Rulemaking, undertaking an independent evaluation and supporting broader research efforts—all to better understand the differences between menthol and nonmenthol cigarettes and the impact of menthol on population health.

    In the U.S., it is estimated that there are nearly 18.6 million current smokers of menthol cigarettes. But use of menthol cigarettes among smokers is not uniform: Out of all Black smokers, nearly 85 percent smoke menthol cigarettes compared to 30 percent of white smokers who smoke menthols. In addition, among youth, from 2011 to 2018, declines in menthol cigarette use were observed among non-Hispanic white youth but not among non-Hispanic Black or Hispanic youth.

    After the 2009 statutory ban on flavors in cigarettes other than menthol, use of flavored cigars increased dramatically, suggesting that the public health goals of the flavored cigarette ban may have been undermined by continued availability of these flavored cigars, according to the FDA.

    Flavored mass-produced cigars and cigarillos can closely resemble cigarettes, pose many of the same public health problems and are disproportionately popular among youth and other populations. In 2020, non-Hispanic Black high school students reported past 30-day cigar smoking at levels twice as high as their white counterparts.

    Nearly 74 percent of youth aged 12 to 17 who use cigars say they smoke cigars because they come in flavors they enjoy, according to the FDA. Among youth who have ever tried a cigar, 68 percent of cigarillo users and 56 percent of filtered cigar users report that their first cigar was a flavored product. Moreover, in 2020, more young people tried a cigar every day than the number of young people who tried a cigarette.

    Pamela Kaufman

    Pamela Kaufman and Sanath Sudarsan of Morgan Stanley said that while the absence of a proposed rule in today’s statement was “somewhat better than the market had feared,” the FDA’s plan is likely to remain an overhang for the sector. They also noted the agency did not indicate plans to ban menthol in noncombustible products such as e-cigarettes, heat-not-burn products and nicotine pouches, which could help incentivize smokers to move away from cigarettes and toward reduced-risk alternatives.

    Menthol regulation will have to follow the FDA’s multi-step/multi-year rulemaking process. The next step is a preliminary rule that would be subject to a comment and review period, typically lasting 90 days. The FDA would then review stakeholder responses and publish a final rule, which would require review from the Department of Health and Human Services and the Office of Management and Budget. Once a rule is finalized, the industry would have additional time to implement the change.

    Kaufman and Sudarsan expect the tobacco industry to challenge a final rule, questioning its scientific basis and stressing the risk of creating an illicit market for menthol cigarettes.

     

  • Vapor Group Dismayed by Final SHEER Report

    Vapor Group Dismayed by Final SHEER Report

    Photo: Parilov

    The EU Scientific Committee on Health, Environmental and Emerging Risks (SCHEER) final report on e-cigarettes is a step backward for Europe, according to the World Vapers’ Alliance (WVA). Based on weak data, it ignores crucial scientific evidence, experience from consumers and the expert opinions received in the consultation period, the advocacy group said in a statement.

    “This report is a tragedy for public health and will have dire consequences for smokers and vapers alike,” said Michael Landl, director of the WVA. “SCHEER ignores a large amount of scientific evidence on vaping, all of which was provided by experts and consumers to SCHEER during their consultation earlier this year. They chose to ignore it. This is a slap in the face of vapers and of common sense.”

    According to the WVA, the report does not consider crucial independent evidence from Public Health England, which shows that e-cigarettes are 95 percent less harmful than smoking and recently found that vaping is the most used means to quit smoking.

    “Countries like the U.K. and France are actively encouraging smokers to use vaping and switch to this less harmful alternative,” said Landl. “If the EU really wants to tackle smoking-related illnesses, it needs to look very carefully at all of the evidence. Unfortunately, the SCHEER report is biased against vaping, and its recommendations, if transposed into legislation, will damage public health.”

    This report is a tragedy for public health and will have dire consequences for smokers and vapers alike.

    The next few months will see further legislation updates in the EU as outlined in Europe’s Beating Cancer plan, including updates to the Tobacco Products Directive and the Tobacco Excise Directive. In this context, the findings of the SCHEER committee may ultimately be detrimental to the health of Europe’s citizens.

    “It seems like the main objective has been overlooked: reducing the number of smokers and tackling smoking-induced illnesses,” said Landl. “Vaping is not smoking and must not be treated the same. Regulation must be drafted in a way that encourages current smokers to switch. The EU needs to focus on practical solutions to reduce harm, and this major point is missing from the SCHEER analysis. Vaping can help smokers quit, but this report ignores that and compares vaping to nonsmoking. So it is unsurprising that the results don’t echo reality.”

    The full SCHEER report is here.

  • U.K. Health Service to Offer Vaping Devices

    U.K. Health Service to Offer Vaping Devices

    Photo: UAV4

    As part of a trial being led by the University of East Anglia, the U.K. National Health Service (NHS) will provide vaping devices and e-liquids to smokers coming to the emergency departments of five hospitals across the U.K. to help them quit.

    Patients attending emergency departments in five hospitals in Norfolk, London, Leicester and Edinburgh will be offered a device, enough e-liquid supplies for a week and referral to local smoking cessation services alongside medical advice.

    This will be followed up at one, three and six month intervals over a 30 month period to monitor success rates for those introduced to vaping compared to those only offered leaflets with details of local smoking-cessation services in the same trial.

    “I welcome this trial being launched and the additional research, which will hopefully make it easier for people to quit smoking in the future,” said Norman Lamb, former health minister and former chair of the House of Commons science and technology committee.

    I welcome this trial being launched and the additional research, which will hopefully make it easier for people to quit smoking in the future.

    “I am particularly keen to ensure that vaping is made available to people with mental ill health given continuing high smoking rates. It is very positive to have such a prominent trial funded by the National Institute for Health Research (NIHR) including clinical trials. I await the results with interest.”

    The U.K. Vaping Industry Association (UKVIA) heralded the NHS’ decision as a landmark moment. “This is a hugely significant moment in the history of vaping and harm reduction,” said John Dunne, director general of the UKVIA.

    “For the first time, following years of research and campaigning, we are finally at the point where the NHS looks to be fully embracing vaping and acknowledging its important role as the number one quit method.”

    Dunne renewed his call to government to give vaping more opportunity to promote itself as a harm reduction alternative to smoking when it is due to review the Tobacco-Related Products Regulations in May.

    “We have put forward the idea of using government-approved expert health claims on vaping products to encourage the remaining six to seven million smokers in the U.K. to switch as well as making sure that there are greater opportunities for the vaping industry to engage with smokers through marketing and advertising means, as current restrictions deter those who may have otherwise made the changeover,” he said.

    “It is extremely important that hospital staff have the knowledge to advise smokers about vaping, including which devices to use, nicotine levels and flavors to opt for in order to support a successful quit.”

  • Video: Arrests in Anti-Counterfeit Operation

    Video: Arrests in Anti-Counterfeit Operation

    An international law enforcement operation involving the Netherlands, Poland and Europol has resulted in the arrest of 30 members of a prolific organized crime gang flooding Europe with millions of counterfeit cigarettes.

    According to Europol, 94 tons of tobacco and 5.4 million counterfeit cigarettes have been removed from circulation following this international sweep. This gang is also believed to be involved in violent robberies.

    This operation was carried out in the framework of the European Multidisciplinary Platform Against Criminal Threats.

    Code-named operation PITBUUL, this operation took part in two phases. A first action day was carried out in the Netherlands at the end of March. Two illegal factories were dismantled in the Dutch cities of Schaijk and Heerlen with a production capacity of more than 1 million cigarettes per day, which equates to a tax loss of over €243,000 ($294,521) per day per factory.

    A total of 21 Polish and Ukrainian workers were arrested on-site, and 5.4 million counterfeit cigarettes were seized alongside 40 tons of raw tobacco and 800 kilos of hookah tobacco.

    A second action day was carried out in Poland last week to arrest the criminal masterminds running this gang. On this occasion, Polish law enforcement raided a dozen of addresses across the country. As a result, nine individuals were arrested and 54 tons of tobacco were seized alongside machinery used for the production of cigarettes. Officers also seized firearms and weapons alongside clothing resembling police uniforms, radio communication devices and signal jammers. According to initial estimates, the loss to the Polish budget is estimated in excess of €11 million.

    Europol supported this case by organizing operational meetings, facilitating the exchange of information between the different countries involved and analyzing the operational data to identify the main targets. Its experts were deployed both in the Netherlands and in Poland to support the national authorities on the spot.

    The investigation is still ongoing to try to find potential links to other European countries.

  • Altria Reports First-Quarter 2021 Results

    Altria Reports First-Quarter 2021 Results

    Photo: Kristina Blokhin

    Altria Group reported net revenues of $6.03 billion in the first quarter of 2021, down 5.1 percent from the comparable 2020 quarter. The decline was driven primarily by lower net revenues in the smokable products segment.

    Net revenues net of excise taxes were $4.88 billion, 3.3 percent lower than in last year’s quarter. Reported diluted earnings per share declined 7.2 percent to $0.77, primarily driven by losses on early extinguishment of debt from a debt liability management transaction, a decrease in the estimated fair value of Altria’s investment in Juul and higher acquisition-related costs, partially offset by higher reported operating companies’ income (in the wine segment and favorable Cronos-related and ABI-related special items).

    “We are off to a strong start to the year and believe our businesses are on track to deliver against full-year plans. Against a challenging comparison, our tobacco businesses performed well in the first quarter and we continued to make progress advancing our noncombustible portfolio,” said Billy Gifford, Altria’s CEO, in a statement.

    “This morning, we announced another important milestone in Altria’s journey in ‘moving beyond smoking.’ We now have full global ownership of On! oral nicotine pouches as we recently closed transactions to acquire the remaining 20 percent global interest.”

    “We would like to honor the memory of Tom Farrell, our late chairman of the board. Tom served 13 distinguished years on our board, offered valuable insights and guidance during his tenure and was a true visionary. We will miss his leadership, contributions and friendship.”

    In March, Altria Group announced that Thomas F. Farrell II would retire from the company’s board of directors following the completion of his current term. Farrell has been a director of Altria since 2008.

  • Reports: Biden Likely to Ban Menthol

    Reports: Biden Likely to Ban Menthol

    Photo: kasetch

    The Biden administration is likely to announce its intention to ban menthol cigarettes tomorrow, people familiar with the plan told CBS News. Such a move would have considerable impact on the tobacco industry because menthol cigarettes account for roughly one-third of the U.S. cigarette market. Approximately 20 million Americans smoke menthols, according to the Food and Drug Administration.

    Mentholated cigarettes have been marketed in the U.S. since the 1920s. Critics want to see them banned because they believe that, by masking the harshness of tobacco smoke, menthol makes it easier to start smoking and harder to quit. While overall smoking has trended downward in recent years, menthol declines have dragged behind other products. The tobacco industry insists that menthol cigarettes are no more harmful to health than nonmenthol cigarettes.

    Cigarette manufacturers have also come under fire for marketing menthol cigarettes disproportionately to Black Americans, highlighting racial inequities. More than 85 percent of Black smokers report using menthol products, as do more than half of all youth who smoke, according to government data.

    The 2009 Family Smoking Prevention and Tobacco Control Act empowered the FDA to regulate cigarette ingredients. The agency duly banned characterizing flavors in cigarettes. However, it exempted mentholated cigarettes, citing concerns about illicit sales, among other considerations.

    In 2011, the FDA’s Tobacco Products Scientific Advisory Committee concluded that “removal of menthol cigarettes from the marketplace would benefit public health in the United States,” but the additive remained on the market. In early 2020, the Trump administration again gave menthol a pass when it banned characterizing flavors in vapor products.

    While the U.S. wavered, other jurisdictions charged ahead. Brazil outlawed menthol along with all flavored cigarettes in 2012, followed by Turkey in 2015 and the European Union and the United Kingdom in 2020.

    Tired of what they perceived as FDA foot-dragging, anti-smoking and racial justice groups sued the agency. The judge in the case instructed the FDA to respond to this citizens’ petition by April 29.

    There is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking.

    Advocates of the ban say the decision about whether to move ahead is ultimately President Biden’s. Banning menthol cigarettes has Democratic support in Congress too. Senator Dick Durbin, Representative Raja Krishnamoorthi and Representative Bobby Rush recently argued that the FDA has a “duty” to ban menthols. “These failures to protect children, particularly African American children, from a path to addiction are inexcusable,” they told the administration. 

    If enacted, a ban would not take effect overnight. Industry analysts expect the implementation of any plan to remove menthol cigarettes from the U.S. market to take years. The FDA, which does not yet have a permanent commissioner in place, would have to go through a lengthy rulemaking process, consider potential consequences, such as illegal sales and racial injustice, and solicit public input.

    “In essence, such an announcement would simply be a way to tell the public, as well as the tobacco industry, that the agency intends to ban the flavoring in cigarettes,” Pebbles Fagan, the director of the Center for the Study of Tobacco at the University of Arkansas for Medical Sciences, told NBC News. “The rulemaking process would likely take several years to finalize and implement. That would provide time to boost smoking cessation programs targeting menthol smokers.”

    The American Civil Liberties Union and dozens of other criminal justice groups warned the White House and Health and Human Services Secretary Xavier Becerra that a ban on menthol cigarettes would have “serious racial justice implications.” 

    The National Newspaper Publishers Association (NNPA), representing more than 200 African American-owned community newspapers from around the United States, and leading Black and Hispanic law enforcement executives, too, have urged the FDA to keep menthol cigarettes legal.

    “It is clear that there is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking,” says Benjamin Chavis, president and CEO of the NNPA. “In fact, the unintended consequences of such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.”

    Supporters of barring menthol products say that a federal ban would focus on retailers selling products and would not criminalize personal use or possession. But critics say that it could be inevitable as a black market grows for illegal cigarettes.

    Biden has pledged to address racial inequities in both criminal justice and healthcare, setting up for what could be an intense balancing act with critics arguing that a ban could increase police brutality and the incarceration of Black Americans.

  • New Director and GM for Parkside Asia

    New Director and GM for Parkside Asia

    Paula Birch

    Parkside has appointed Paula Birch director and general manager of the company’s Asian operations. Effective immediately, Birch will take up the new position alongside her current global sales director role—a position she has held for the last two years. 

    Birch will relocate to Kuala Lumpur, Malaysia, to drive new business opportunities in key packaging markets, including tobacco and food, across the Asian region.

    “At Parkside, we pride ourselves on being industry-leading innovators across the print and packaging sectors,” said Birch. “I am delighted to take up this new role in a significant growth period in the Asian market and show just what our business is capable of. With emergent technologies and process efficiencies being implemented at our Malaysian site, coupled with increasing demands for compostable, recyclable and lightweight, flexible packaging solutions, I’m excited about what the future holds for us as a business.”

    I am delighted to take up this new role in a significant growth period in the Asian market and show just what our business is capable of.

    Over recent years, Parkside has repositioned its brand and service offering, gaining a strong foothold in the European food packaging sector.

    The business is renowned for its focus on sustainable, flexible packaging solutions. Birch will implement this strategy in the Asian packaging market while building on its reputation for tobacco packaging in the region.

    “We are delighted to see Paula progress into her new role,” said Robert Adamson, managing director of Parkside. “Her extensive experience is invaluable in supporting the company’s growth and innovation strategy across Europe and Asia. Paula is a shining example of our values at Parkside being committed, innovative, hardworking and never afraid to challenge the norm. She represents the quality of personnel we aim to attract at Parkside, and we are excited by her potential to propel the business forward.” 

  • Malawi Minister Furious Over Rejections

    Malawi Minister Furious Over Rejections

    Photo: africa

    Malawi Minister of Agriculture Lobin Lowe has summoned representatives of all tobacco stakeholders to discuss the high rejection rate, reports The Nyasa Times. Up to 72 percent of bales brought to auction were being rejected at the newspaper’s press time.

    Lowe urged farmers to deliver high-quality tobacco and to avoid child labor, which international tobacco buyers frown upon. What’s more, he encouraged tobacco growers to diversify into crops such as soya, groundnuts and cotton to reduce their dependency on the golden leaf.

    Lowe echoed sentiments expressed earlier by Malawi President Lazarus Chakwera. During the opening ceremony of 2021 tobacco selling season on April 20, Chakwera said there was no future in tobacco due to declining demand.

    Chakwera said Malawi tobacco growers should switch to other cash crops like cannabis, which Malawi legalized last year for industrial and medicinal use.

  • Justice Advocates Plead to Keep Menthol Legal

    Justice Advocates Plead to Keep Menthol Legal

    Photo: Fractal Pictures

    The National Newspaper Publishers Association (NNPA), representing more than 200 African American-owned community newspapers from around the United States, and leading Black and Hispanic law enforcement executives are urging the Food and Drug Administration to keep menthol cigarettes legal. The FDA must respond by April 29 to a citizen’s petition demanding menthol cigarettes be banned nationwide.

    “It is clear that there is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking,” says Benjamin Chavis, president and CEO of the NNPA. “In fact, the unintended consequences of such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.”

    According to the NNPA and its fellow petitioners, daily interactions between police and people of color demonstrate that a menthol ban would give police pretext to approach a smoker to find out where cigarettes were purchased in order to get to the seller of the counterfeit tobacco.

    “In recent times, the world has seen far too many cases of these encounters lead to verbal and physical altercations and often fatal results,” the NNPA wrote in a press release.

    Such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.

    According to the U.S. Surgeon General report on smoking cessation, “the evidence is suggestive but not sufficient to infer that restricting the sale of certain types of tobacco products, such as menthol or other flavored products, increases smoking cessation, especially among certain populations.”

    The organizations are requesting that the FDA exhaust all other options before completely removing menthol cigarettes from legal, regulatory channels.

    The citizens’ petition demanding a menthol ban was filed by the African American Tobacco Control Leadership Council and Action on Smoking and Health, which contend that tobacco companies have specifically targeted Black Americans with menthol cigarettes.

  • New Chairman at British American Tobacco

    New Chairman at British American Tobacco

    Luc Jobin (Photo: BAT)

    Luc Jobin succeeds Richard Burrows as chairman of BAT today. Jobin joined the BAT board in 2017 as an independent nonexecutive director. His previous positions include president and CEO of Canadian National Railway Co., executive vice president of Power Corp. of Canada and CEO of Imperial Tobacco Canada.

    Speaking at BAT’s annual general meeting, Burrows said his successor would inherit “a strong business that is transforming, has excellent momentum and is well placed to deliver sustainable growth for many years.”

    BAT delivered constant currency revenue growth of 3.3 percent, above its revised 1 percent to 3 percent guidance range. On a constant currency adjusted basis, profit from operations grew by 4.8 percent. Operating margin grew by 100 basis points to 44.1 percent including the impact of currencies.

    BAT is well positioned for future success with Luc as chairman and Jack Bowles as chief executive.

    Reduced-risk “new category” products delivered £1.4 billion ($1.94 billion) in revenues in 2020, representing 15 percent growth at constant rates compared with 2019. The company is on track to meet its £5 billion new category revenue ambition by 2025.

    Burrows expressed strong confidence in BAT’s future under Jobin’s leadership.

    “Luc brings a wealth of experience, including significant financial, regulatory and consumer business acumen. Having worked closely with him in his role as a nonexecutive director over the last three years, I know that BAT is well positioned for future success with Luc as chairman and Jack Bowles as chief executive,” he said in a statement.

    “I retire as chairman with many fond memories and the last year, in particular, has demonstrated the unwavering resolve of the people in BAT. From every level in the business, right through to our management board, ambition, talent, passion and enthusiasm are what drives BAT’s delivery. I look forward to the company’s continued success.”