Category: News This Week

  • KT&G to Convert to Eco-Friendly Vehicles

    KT&G to Convert to Eco-Friendly Vehicles

    Minister of Environment Han Jeong-ae (left) and KT&G Vice President Bang Gyeong-man during the Korean Pollution-Free Conversion 100 ceremony at The Plaza Hotel in Seoul (Photo: KT&G)

    KT&G plans to convert a total of 1,200 business vehicles into eco-friendly vehicles by 2030.

    KT&G participated in the 2nd Declaration Ceremony for Korean-style Electric Vehicle Conversion 100 (K-EV100), held at The Plaza Hotel in Jung-gu, Seoul on April 14.

    The K-EV100 project is led by the Ministry of Environment, which has publicly declared that vehicles owned or leased by private companies will be converted to 100 percent pollution-free vehicles by 2030.

    Converting all of the company’s current business vehicles into eco-friendly vehicles by 2030 is predicted to reduce greenhouse gas emissions by more than 20,000 tons.

    “This K-EV100 declaration is a part of KT&G’s sustainability agenda, and we will endeavor to become a global leading company in ESG through systematic and advanced ESG management,” a KT&G official said in a statement.

  • Call For Probe Into Security Contract

    Call For Probe Into Security Contract

    Image: Kurious from Pixabay

    Jeorge Wilson Kingson, chairman of the Media Alliance in Tobacco Control and Health, has called for a probe into circumstances that led to the suspension of a contract between the government of Ghana and the U.K. security printing firm De La Rue, reports Modern Ghana.

    In September 2020, the Ghana Revenue Authority signed a five-year contract with De La Rue to create a track-and-trace excise tax stamp system to combat the growing illicit trade in cigarettes

    However, the deal was suspended after it became clear that De La Rue outsourced the contract to Atos, an IT company with links to the tobacco industry.

    The World Health Organization requires providers of anti-illicit trade systems to be independent of the tobacco industry, suggesting the sector is complicit in smuggling its own products.

    Despite the outcry at the time about the tobacco links, the government and other agencies have gone silent on the issue. Kingson says this makes it look as if the issue has been swept under the carpet.

  • Bidi Vapor Expands Internationally

    Bidi Vapor Expands Internationally

    Bidi Vapor successfully completed the regulatory process to enter seven additional international markets, bringing the total of new international countries open for distribution to 11.

    These new international markets include Spain, France, Italy, Germany, the Netherlands, Austria and the Czech Republic. Previously, on March 31, 2021, Kaival Brands announced that Bidi Vapor obtained market authorization for four countries: Australia, New Zealand, Russia and the United Kingdom.

    “We are very excited about pursuing our international opportunities,” said Niraj Patel, CEO of Kaival Brands, in a statement, noting how the countries posed both challenges and opportunities that the company is ready to take on.

    Kaival Brands is the exclusive distributor for Bidi Vapor’s primary offering, the Bidi Stick, which is the subject of a premarket tobacco product application now under review with the U.S. Food and Drug Administration.

  • Half-Day Tobacco Harm Reduction Conference

    Half-Day Tobacco Harm Reduction Conference

    The GTNF Trust will present a special half-day virtual conference on April 27, titled In Focus: Tobacco Harm Reduction, to help participants evaluate the science on tobacco harm reduction products and address the challenges and opportunities that lie ahead.

    The conference comes at a critical time. This year, the World Health Organization will host its Conference of the Parties for the Framework Convention on Tobacco Control. Meanwhile, the EU is pressing ahead with its newly launched Beating Cancer Plan and drafting the next Tobacco Products Directive.

    Panelist in the In Focus: Tobacco Harm Reduction conference include:

    • David Abrams, professor in the department of social and behavioral sciences at New York University;
    • Mark Kehaya, chairman of AMV Holdings;
    • Maria Gogova, vice president and chief scientific officer at Altria Client Services;
    • Karl Fagerstrom, president of Fagerstrom Consulting;
    • Delon Human, president of Health Diplomats;
    • Jasjit S. Ahluwalia, professor of behavioral and social sciences and professor of medicine at the Center for Alcohol and Addiction Studies, Brown University School of Public Health and Alpert School of Medicine;
    • Riccardo Polosa, full professor of internal medicine at the University of Catania and founder of the Center of Excellence for the Acceleration of Harm Reduction;
    • James Murphy, executive vice president of R&D and scientific and regulatory affairs at Reynolds American; and
    • Roxana Weil, senior director of product integrity and toxicology at Juul Labs.

    For more information and registration, please visit infocusthr.org.

  • Estonia Suspends E-Liquid Taxation

    Estonia Suspends E-Liquid Taxation

    Photo: Makalu from Pixabay

    Estonia’s parliament recently voted to suspend the nation’s excise tax on e-liquid between April 1, 2021, and Dec. 31, 2022, to reduce cross-border and illicit trade. The Estonian excise duty on e-liquid has been €0.2 ($0.24) per mL since 2018.

    “Suspending the collection of excise duty will make it possible to lower the price of e-liquids and thus offer consumers controlled and safe products at a lower price,” said Tarmo Kruusimae, parliament member and chairman of the parliament’s Smoke Free Estonia Support Group.

    “It has the potential to become a success story if we manage to reduce both the illicit trade and cross-border trade and at the same time offer less harmful alternatives to cigarettes at a more competitive price.”

    The group estimates that about 62 percent to 80 percent of the Estonian e-liquid market comprises self-mixed, cross-border and smuggled e-liquids primarily from Latvia and Russia. The e-liquid black market strengthened in 2019 when Estonia implemented a tobacco and vapor product flavor ban.

    Tobacco harm reduction advocates welcomed Estonia’s decision. “Estonia’s example with over-taxation of e-liquids should definitely be an educational experience for other countries,” said Ingmar Kurg, CEO of NNA Smoke Free Estonia and a member of the International Network of Nicotine Consumer Organizations, in a statement.

    “If laboratory-tested and legal products are made too expensive for consumers, they will look for solutions in the black market, self-mixing and cross-border trade. Some people give up e-cigarettes and return to smoking, which happened in Estonia.”

  • Radical Plan to Achieve Smoke-Free Society

    Radical Plan to Achieve Smoke-Free Society

    The government of New Zealand wants to ban cigarette filters, reduce product nicotine levels, minimize the number of tobacco outlets and outlaw tobacco sales to new smokers, reports Stuff.

    Released to the public in a discussion document on April 16, the proposals are intended to help New Zealand achieve its ambition of being smoke-free by 2025.

    “About 4,500 New Zealanders die every year from tobacco, and we need to make accelerated progress to be able to reach that goal,” said Associate Health Minister Ayesha Verrall. “Business as usual without [a] tobacco control program won’t get us there,” she said.

    One of the proposed measures entails a ban on the sale of tobacco to people younger than 18 from 2022, meaning anyone born after 2004 would be unable to buy tobacco.

    Another proposal calls for limiting tobacco sales to pharmacies and designated stores. Currently, there are no restrictions on where tobacco can be sold in New Zealand. At least 80 percent of it is sold through convenience stores, service stations, on-licensed premises and supermarkets.

    I’m sick and tired of this government trying to socially engineer us into changing our behavior.

    Other proposed measures include setting a minimum price for tobacco, licensing all tobacco and vaping retailers and reducing nicotine in tobacco products to “low levels.”

    The prospect of limiting the amount of nicotine in tobacco would require input from tobacco companies and “whether that’s a sort of product that they think could be offered commercially.”

    “Some tobacco companies have said that they support a smoke-free goal and are putting their efforts on vapes, and I hope that they will see this as a positive development,” said Verrall.

    Health advocates applauded the proposals. Boyd Swinburn, chairman of advocacy group Health Coalition Aotearoa, said the recommendations were likely “game-ending” for tobacco.

    “There is clear evidence that restricting retail availability is a central strategy for reducing the damage from all harmful products,” he said.

    “Several options to achieve this are outlined in the government’s proposals, and we need to ensure that there is a just transition for small business owners, like dairies, to exit tobacco retail.”

    Others were less enthusiastic, saying the measure would boost illicit trade. ACT Party social development spokeswoman Karen Chhour said the proposed measures would mean smokers who are less able to afford their habits would end up spending more.

    “As a former smoker, I have to say I’m sick and tired of this government trying to socially engineer us into changing our behavior,” she said.

    “There’s a strong argument, too, that this will drive up the trade of black market tobacco with high nicotine, driving those addicted to cigarettes to turn to crime to feed their habit.”

    22nd Century Group, a U.S. company specializing in very low nicotine content tobacco, welcomed New Zealand’s proposals, saying it is fully prepared to support the country in its efforts to become a smoke-free nation by 2025.

    “New Zealand has made great progress since announcing their goal of becoming smoke-free by 2025, but in order for the country to finally achieve success, it is imperative that the amount of nicotine in cigarettes is reduced 95 percent to ‘minimal levels,’” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.

    22nd Century said it initially engaged with public health researchers in New Zealand in 2016 when the country announced its goal of becoming smoke-free, leading the New Zealand Medical Journal to publish a letter recommending 22nd Century’s reduced nicotine content cigarettes as an “important smoking reduction tool.”

    New Zealand has played a key role in past smoking reduction initiatives that have eventually been adopted globally. Other countries, including Australia and Canada, as well as the World Health Organization are expected to call for lower nicotine levels too.

  • Duty-Free Fights Illicit Trade Allegations

    Duty-Free Fights Illicit Trade Allegations

    The Duty Free World Council (DFWC) is fighting suggestions that the duty-free industry is involved in the illicit trade of tobacco, reports The Moodie Davitt Report.

    Parties to the World Health Organization Framework Convention on Tobacco Control are due to discuss the global health body’s Illicit Trade Protocol (ITP) when they convene in The Hague in November. Article 13.2 of the ITP calls for an evidence-based study “to assess the extent to which duty free contributes to the illicit trade.”

    DFWC President Sarah Branquinho said that the duty-free industry has a long history of working closely with customs and enforcement bodies to eradicate problems such as illicit trade, smuggling and counterfeiting and must be given the opportunity to cooperate and contribute further.

    “There can be no justification for penalizing legitimate, law-abiding businesses under a pretext of controlling illicit trade,” said Branquinho during a briefing to the travel retail trade. “We are one of the most regulated sectors in the world.”

    There can be no justification for penalizing legitimate, law-abiding businesses under a pretext of controlling illicit trade.

    Branquinho noted that duty-free retailers face substantial penalties from customs authorities “even if there’s the slightest discrepancy in stock reconciliation procedures … we have every incentive ourselves as retailers to ensure that there are no discrepancies,” she said.

    Branquinho further emphasized that the duty-free industry fully supports the implementation of the provisions of the ITP. These include the establishment of licensing, due diligence, establishment of a tracking and tracing system, requirement of record keeping and security and preventive measures.

    The duty-free category was worth more than $7.4 billion in 2019.

  • STG Approves Dividend, Elects Directors

    STG Approves Dividend, Elects Directors

    Photo: STG

    Scandinavian Tobacco Group held its annual general meeting this week.

    Participants adopted the audited annual report and approved the board of directors’ proposal to pay a dividend of DKK6.50 ($1.05) per share of DKK1 for fiscal year 2020.

    The remuneration report and the board of directors’ proposal for compensation of the board for financial year 2021 were both approved as well.

    Share capital of the company will be reduced by canceling some of the company’s treasury shares of a nominal value of DKK2,500,000. After the reduction, the nominal value of the company’s share capital will be DKK97,500,000.

    Company announcements will be released only in English going forward; the company’s release regarding the annual meeting results will be the last release in both Danish and English.

    Nigel Northridge (chairman of the board), Henrik Brandt (vice chairman of the board), Dianne Blixt, Marlene Forsell, Claus Gregersen, Luc Missorten and Anders Obel were re-elected to the board of directors. Henrik Amsinck was newly elected to the board.

    PricewaterhouseCoopers Statsautoriseret Revisionspartnerskab was re-elected as auditor of the company.

  • U.K. Bans Nordic Spirit Video Game Ad

    U.K. Bans Nordic Spirit Video Game Ad

    Photo: JTI

    The U.K. Advertising Standards Authority (ASA) has banned a Nordic Spirit nicotine pouch ad for implying that the product has a mood-altering and stimulant effect, reports The Evening Standard.

    The ad appeared on Crunchyroll, an anime streaming service, and depicted people using Gallaher’s Nordic Spirit pouches as they got ready to play an online video game. The players reacted enthusiastically to the game while online text read, “A new nicotine experience,” “great flavors,” “pocket-sized convenience” and “never miss a moment.”

    There was small text on the screen throughout the advertisement stating that the product was for those 18-plus, that it contained nicotine and that nicotine is addictive.

    Gallaher said the ad did not intend to target minors; according to the company, 85 percent of Crunchyroll’s audience was 18 years or older. The streaming service requires users to confirm that they are at least 16 years old.

    The ASA found that the ad did not breach rules in respect of the ad being appropriately targeted to its audience. However, it did find that the product was not advertised responsibly.

    The video ad was designed purely to emphasize the hands-free convenience of Nordic Spirit for existing adult nicotine users as an alternative to smoking cigarettes.

    “We considered that the combination of the depiction of players using the product as they were about to start the game, the sense of anticipation created by music building to a drop and their reactions of excitement associated the use of the product with the game,” the ASA said. “These all implied that it had a mood-altering and stimulant effect, which would enhance enjoyment and gameplay. In the context of an ad for a product that contained nicotine, we considered that was irresponsible and breached the code.”

    “We are disappointed with the finding that our advert for Nordic Spirit suggested that using the product made video gaming more fun and enjoyable and that the advert implied a mood-altering or stimulant effect,” said a spokesperson for Gallaher’s parent company, JTI. “The video ad was designed purely to emphasize the hands-free convenience of Nordic Spirit for existing adult nicotine users as an alternative to smoking cigarettes or using other nicotine-containing products.”

    “While we maintain that at no point did our advert convey any mood-altering or stimulant effect, the ASA’s decision does provide some useful and clearer guidance to help ensure that ads for nicotine-containing products meet the ASA’s requirements.”

  • WHO Touts Benefits of Tobacco Taxation

    WHO Touts Benefits of Tobacco Taxation

    Image: Tobacco Reporter archive

    The World Health Organization (WHO) has released a new technical manual on tobacco tax policy and administration that shows countries ways to cut down on more than $1.4 trillion in health expenditures and lost productivity due to tobacco use worldwide.

    According to the global health body, improved tobacco taxation policies can also be a key component of “building back better” after Covid-19, where countries need additional resources to respond and to finance health system recovery.

    “We launched this new manual to provide updated, clear and practical guidance for policymakers, finance officials, tax authorities, customs officials and others involved in tobacco tax policy to create and implement the strongest tobacco taxation policies for their specific countries,” said Jeremias N. Paul Jr., unit head for the fiscal policies for health team in the health promotion department at the WHO.

    “We hope this document sheds light on the significant advantages to raising tobacco taxation. The data and insights provided here should be an eye opener for policymakers worldwide,” he said.

    Only 14 percent of the world has enough tax on tobacco, according to the WHO.

    “In 2018, only 38 countries covering 14 percent of the global population had sufficiently high tobacco taxes—which means taxing at least 75 percent of the price of these health-harming products,” the organization wrote in a press note. “By implementing proven policies like tobacco taxes, the costs created by the tobacco industry to local communities and nations can be avoidable.  It is a win for population health, revenue and for development and equity.”