Category: News This Week

Concern Over Tobacco Takeover of Cannabis

Photo: Terre Di Cannabis from Pixabay
Big Tobacco must be prevented from utilizing “its profit-driven product engineering of addictive and deadly products, predatory marketing practices and anti-regulatory expertise” to dominate the legal cannabis industry, according to Andy Tan and Shaleen Title.
Writing in Tobacco Control, the academics say the tobacco industry has a demonstrated history of resisting government regulation, co-opting scientific experts, engineering tobacco products to be more addictive and using substantial marketing budgets to maximize sales and profits of its products. “If tobacco companies are permitted to dominate the legal cannabis industry, this will risk exacerbating public health harms on groups that are disproportionately harmed by tobacco use,” they write.
Driven by declining sales of tobacco products and spreading legalization of cannabis, the tobacco industry has been diversifying into cannabis in recent years.
In January 2016, Philip Morris International invested $20 million in Syqe Medical, which developed a medical cannabis inhaler. In June 2018, Imperial Brands invested in Oxford Cannabinoid Technologies.
In December 2018, Altria Group invested $1.8 billion in Cronos, a Canada-based multinational cannabis company. Imperial Brands in July 2019 acquired a stake in Auxly Cannabis.
If tobacco companies are permitted to dominate the legal cannabis industry, this will risk exacerbating public health harms.
Andy Tan and Shaleen Title
And just last month, British American Tobacco signed a strategic collaboration agreement with Organigram, a wholly owned subsidiary of publicly traded Organigram Holdings.
In their piece, Tan and Title urge authorities to restrict Big Tobacco’s participation in the cannabis industry, for example, by placing limits on the seizes of cannabis businesses by enforcing regulations on how many stores or plants one individual can own.
Tan is an associate professor of communication at the Annenberg School for Communication at the University of Pennsylvania.
Title is a distinguished cannabis policy practitioner in residence at the Drug Enforcement and Policy Center of the Ohio State University Moritz College of Law.
April 14, 2021
Jujuy Province Eyes Cannabis as Cash Crop

Photo: Tobacco Reporter archive
Governor Gerardo Morales has suggested that tobacco farmers in Argentina’s Jujuy Province begin growing cannabis to offset declining tobacco sales, reports The Buenos Aires Times.
“Cannabis is one of the most important projects that we have, and it’s going to generate more profits than lithium and solar energy,” said Morales, whose provincial government has worked to foster marijuana production in the region’s dry, sunny terrain for export.
“I hope that with this [growing cannabis market] we will begin a change in diversification and that 10 years from now we will stop planting tobacco and plant cannabis,” he said.
Tobacco producers, however, were not undividedly enthusiastic. Pedro Pascuttini, president of the Jujuy Tobacco Chamber, said his group would fight to continue producing tobacco.
He added, however, that the group was not completely closed to the idea. “We hope that it will be treated in a way in which they explain to us what it is about, and we are listened to,” he said.
Ten years from now, we will stop planting tobacco and plant cannabis.
Gerardo Morales, governor, Jujuy Province
Last month, Argentinean lawmakers sent a bill to legalize the production of medicinal cannabis to Congress after a decree authorized personal cultivation for the same purposes last year.
“The global industry for medical cannabis will treble its turnover in the next five years,” Argentina’s President Alberto Fernandez predicted in March.
April 14, 2021
Cigarette-Level Nicotine May Reduce Exposure

Photo: Auremar | Dreamstime.com
E-cigarettes that deliver a cigarette-like amount of nicotine are associated with reduced smoking and reduced exposure to a major cancer-causing chemical in tobacco, even with concurrent smoking, according to a new study led by researchers at Penn State College of Medicine and Virginia Commonwealth University (VCU).
“We found that e-cigarettes that delivered a similar amount of nicotine as traditional combustible cigarettes helped reduce smoking and exposure to a harmful carcinogen,” said Jonathan Foulds, a researcher at Penn State Cancer Institute and professor of public health sciences and psychiatry and behavioral health. “This study shows that when smokers interested in reduction are provided with an e-cigarette with cigarette-like nicotine delivery, they are more likely to achieve significant decreases in tobacco-related toxicants, such as lower exhaled carbon monoxide levels.”
The researchers conducted a randomized controlled trial of 520 participants who smoked more than nine cigarettes a day, were not currently using an e-cigarette device and were interested in reducing smoking but not quitting.

We found that e-cigarettes that delivered a similar amount of nicotine as traditional combustible cigarettes helped reduce smoking and exposure to a harmful carcinogen.
Jonathan Foulds, professor of public health sciences and psychiatry and behavioral health
According to Foulds, the findings represent an important addition to the scientific literature because they suggest that when e-cigarettes deliver nicotine effectively, smokers have greater success in reducing their smoking and tobacco-related toxicant exposure. Caroline Cobb, associate professor of psychology at VCU and lead author, said the study is important for two reasons.
“First, many e-cigarettes have poor nicotine-delivery profiles, and our results suggest that those products may be less effective in helping smokers change their behavior and associated toxicant exposure,” Cobb said.
“Second, previous randomized controlled trials examining if e-cigarettes help smokers change their smoking behavior and toxicant exposure have used e-cigarettes with low or unknown nicotine delivery profiles,” Cobb said. “Our study highlights the importance of characterizing the e-cigarette nicotine delivery profile before conducting a randomized controlled trial. This work also has other important strengths over previous studies, including the sample size, length of intervention, multiple toxicant exposure measures and control conditions.”
The study contributes to the ongoing question of what role e-cigarettes play in changing smoking behavior, and the findings support limited safety concerns for the use of the specific e-cigarette and liquid combinations over the short term, even in the context of concurrent cigarette smoking. However, Cobb added, very little is known about the effects of e-cigarettes over the course of years as opposed to the study’s 24-week period.
April 14, 2021
Taiwan Targets Nicotine Devices

Photo: Timo Volz from Pixabay
Taiwan could ban electronic nicotine-delivery systems (ENDS) in the second half of 2021, according to a report in The China Post.
The Taipei City Government Department of Health has reportedly drawn up draft amendments to the Tobacco Hazards Prevention Act, which have been sent to Parliament for approval.
The proposed amendments prohibit the manufacture, import, sale, supply, display, and advertisement of vaping devices and novel tobacco products.
Violators faces fines of between TWD$10,000 (US$351) and TWD$50,000.
E-cigarettes represent a new health hazard issue, according to Taiwan’s Health Bureau, which also points to cases of e-cigarettes containing amphetamines, marijuana and other drugs abroad.
The health authorities also expressed concern about the risk of ENDS exploding.
April 14, 2021
Swedish Match Holds Annual Meeting

Photo: Swedish Match
Participants in Swedish Match’s annual general meeting on April 13 resolved, in accordance with a proposal of the Board of Directors, to pay a dividend of SEK15 ($1.76) per share.
Charles A. Blixt, Andrew Cripps, Jacqueline Hoogerbrugge, Conny Karlsson, Alexander Lacik, Pauline Lindwall, Wenche Rolfsen and Joakim Westh were re-elected as members of Swedish Match’s board of directors. Karlsson was re-elected as chairman of the board and Cripps was re-elected as deputy chairman of the board.
The annual general meeting further approved the proposed remuneration to the members of the board of directors as set out in the notice. The annual general meeting also adopted the board of directors’ remuneration report for 2020.
Furthermore, the annual general meeting approved the board of directors’ proposal that it be authorized to resolve on acquisition of the company’s own shares, on one or several occasions prior to the next annual general meeting, provided the company’s holding does not at any time exceed 10 percent of all shares in the company.
In addition, the annual general meeting resolved to reduce the company’s share capital by SEK10,086,095.88 by means of withdrawal of 4,200,000 previously repurchased shares held in treasury, with a simultaneous bonus issue, without issuing any new shares, of a corresponding amount to restore the share capital.
Furthermore, the annual general meeting approved the board of directors’ proposal that it be authorized to, for the period until the end of the next annual general meeting, to issue new ordinary shares on one or more occasions, with or without deviation from shareholders’ preferential rights and against payment in cash, in kind or by set-off. The number of shares that may be issued may not exceed a maximum dilution effect of 10 percent of the share capital and votes at the time of the annual general meeting 2021.
The annual general meeting elected Deloitte as auditor until the end of the annual general meeting 2022.
The annual general meeting resolved, as proposed by the board of directors, to amend the articles of association, primarily as regards the stipulation on minimum and maximum number of shares and share capital due to the proposed share split but also by introducing the possibility of postal voting to facilitate and increase flexibility in the conduct of general meetings.
The annual general meeting resolved, as proposed by the board of directors, to split the share of the company, whereby each existing share shall be split into 10 shares of the same class of shares (10:1 share split). The board of directors was mandated to decide on the record date for the share split, which is estimated to be May 10, 2021.
April 14, 2021
Blackbriar and Beard Management Cooperate

Photo: Tobacco Reporter archive
Blackbriar Regulatory Services (BRS) has entered into a regulatory services, manufacturing and distribution agreement with Beard Management. BRS will become Beard’s exclusive manufacturer and a distributor for the company’s Beard Vape Co. and The One brands’ nicotine products and will take over the premarket tobacco product application (PMTA) process for these products. As a part of the agreement, BRS will co-brand a range of PRISM e-liquid products that are complimentary to Beard’s product line, which are currently awaiting regulatory PMTA approval and being manufactured under license by BRS.
“We are honored that Beard, a globally recognized and respected brand, has put their trust in BRS as a key strategic partner moving forward,” said Russ Rogers, CEO of BRS. “Our combination of ISO-certified cleanroom production and analytical lab facilities and industry-leading FDA regulatory application team puts us in a position to provide a very compelling value proposition to customers who are making the investment to be in this industry long-term.
“Beard’s unwavering commitment to high-quality products and regulatory practices makes them a great partner, and we could not be more excited to provide them with a wide array of business solutions to help them ensure that their amazing brand continues to grow and remains a long-term part of this rapidly changing and maturing industry.”
Partnering with BRS ensures the longevity of our brands.
Casey Bates, CFO, Beard
BRS will now become Beard’s agent of record with the U.S. Food and Drug Administration and will oversee the process of providing to the FDA any additional regulatory and testing work required for Beard’s current PMTAs to scientifically prove its products are appropriate for the protection of public health. In addition, BRS will be manufacturing all of Beard’s 45 e-liquid products, including the Beard Vape Co. and The One brands. National and international distribution and all newly required domestic shipping registrations and compliance will also be handled by BRS.
“Partnering with BRS ensures the longevity of our brands,” said Casey Bates, chief financial officer at Beard. “With BRS’ proven competencies as a leader in nicotine e-liquid product manufacturing and regulatory services, it puts us in the perfect position moving forward. The merging of our core competencies will allow Beard to continue delivering great products and great customer service to adults looking for tobacco alternatives. We couldn’t have done this on our own, and we have a long list of people to thank, both at Beard and BRS, for making this possible.”
April 13, 2021
FITA Rejects BAT’s Tax-Evasion Accusations

Photo: Ognjen Stevanovic | Dreamstime.com
The Fair-Trade Independent Tobacco Association (FITA) has rejected accusations of tax evasion against its member companies.
Earlier this week, British American Tobacco South Africa (BATSA) suggested that many of its competitors were selling below the legal minimum collectable tax (MCT) level. According to an IPSOS report commissioned by BATSA, three-quarters of retail outlets in Gauteng, Western Cape and Free State are now openly selling illegal cigarettes.
Many of the brands that sold below MCT level belonged to FITA members, according to the report.
The FITA questioned IPSOS credentials. “This is not BATSA’s first dance with this particular research institution following the much-discredited report released in 2018,” the association wrote.
“Independent researchers and academics have repeatedly voiced their concerns about Big Tobacco and how it should not be trusted in respect of its research and studies on the illicit tobacco trade. They have repeatedly been found to have overstated the size and prevalence of this scourge in order to suit their selfish needs, often to the detriment of their commercial competitors and/or the fiscus.
“These so-called independent reports are now also being used as ammunition by Big Tobacco for anti-competitive purposes to smear the names and brands of independent local cigarette manufacturers.”
FITA insisted its members comply with South Africa’s tobacco laws. The association says it supports an inquiry where warranted, and that authorities should investigate BATSA.
April 13, 2021
‘Tobacco Tax Evasion a ‘National Emergency’

Photo: Tobacco Reporter archive
South Africa’s recent tobacco tax increase has sparked a criminal price war in the country as manufacturers flood the market with untaxed cigarettes, according to British American Tobacco South Africa (BATSA).
A new independent report by IPSOS shows that the announcement of the 8 percent hike in tobacco taxes appears to have been the trigger for an all-out illegal price war in key provinces.
Three-quarters (74 percent) of retail outlets in Gauteng, Western Cape and Free State are now openly selling illegal cigarettes. This is an increase of more than 7 percent on the last survey conducted before the excise increase in February.
The report showed that three-quarters (74 percent) of retail outlets in the three provinces nationwide sold cigarettes below the legal minimum collectible tax (MCT) level. Mystery shoppers were able to purchase illegal cigarettes in every retail sector more easily than during a similar study in February.
Gold Leaf Tobacco Corp. brands found being sold under the MCT rose by 13 percentage points in a month, and 85 percent of their brands purchased were illegal. One hundred percent and 91 percent of brands owned by Afroberg and Carnilinx, respectively, were being sold below MCT in retail outlets where they were the cheapest products available.
BATSA General Manager Johnny Moloto said that the findings of this latest report illustrate a “national emergency.”
The facilitation of this scale of robbery of billions of rand from the people of South Africa as we continue to struggle with pandemic hardships is totally unacceptable.
Johnny Moloto, general manager, BATSA
“We thought that the levels of criminality and tax evasion that cost every single South African huge sums of money could not get any worse. We were wrong,” Moloto said. “This study shows that, now, three out of every four retail outlets in Gauteng, Western Cape and Free State are openly selling illegal products that are not remitting taxes.
“The facilitation of this scale of robbery of billions and billions of rand from the people of South Africa as we continue to struggle with pandemic hardships is totally unacceptable. The robbery is not just getting worse. This study shows that it’s getting worse on a day-by-day basis.
“This is a national emergency, and it’s clear we need an immediate Commission of Inquiry into the tobacco market in South Africa.”
April 12, 2021
Russia Pushes for Self-Extinguishing Cigarettes

Photo: JTI
Tobacco companies selling in member states of the Eurasian Economic Union should be required to manufacture cigarettes that self-extinguish when not smoked, according to a proposal by the Russian Ministry of Healthcare.
“A draft resolution of the board of the Eurasian Economic Commission, setting forth requirements to consumer packaging and information placed on tobacco product packs and the requirement to inflaming capability of cigarettes released for circulation on the market of Union member-states, was sent by the Russian Ministry of Healthcare to interested federal executive authorities,” Tass reported.
Negligence during smoking is the cause of many fires, including with fatalities and material damage, the Ministry of Emergencies noted.
“Bringing cigarettes with lowered inflaming capability in circulation may significantly influence prevention of a portion of fire outbreaks, lowering fatalities and injuries of people during fires due to negligent smoking, and saving property of citizens,” it said.
April 12, 2021
Juul Leaves Canadian Industry Association

Photo: Juul Labs
Juul Labs is leaving Canada’s Vaping Industry Trade Association (VITA), citing nonalignment on critical policy issues.
“While we have appreciated the opportunity to collaborate with VITA, we will not be renewing our membership as we are not aligned on too many critical policy issues,” Juul Labs wrote in a statement. “For example, we support Tobacco 21 legislation—raising the minimum purchase age of tobacco and vaping products to 21—enhanced access controls at retail and limiting flavor options.”
Juul Labs Canada said it will continue to focus on combating underage usage of vaping products while preserving the historic opportunity to switch adult smokers off of combustible cigarettes.
Tobacco Reporter’s sister publication Vapor Voice profiles VITA in its current issue.
April 12, 2021