Category: News This Week

John Pritchard Joins FDLI Committee

Photo: Ekkasit919 | Dreamstime.com
22nd Century Group Vice President of Regulatory Science John Pritchard has joined the Food and Drug Law Institute’s (FDLI) Tobacco and Nicotine Products Committee.
The committee brings together a diverse group of stakeholders, including public health researchers, leaders of nongovernmental organizations and members of the U.S. Food and Drug Administration Center for Tobacco Products, to discuss tobacco product regulation and policy.
“We are proud that John has been invited to serve on the highly regarded FDLI Tobacco and Nicotine Product Committee and to represent 22nd Century in this forum,” said James A. Mish, CEO of 22nd Century Group, in a statement.
“Our organization is fortunate to have a number of experts on our leadership team, and it is important that we play an active role in moving the tobacco industry forward to reduce the harm caused by smoking.”
“With respiratory health front and center in everyone’s minds, there has never been a more critical time to advance effective public health policy and regulation in the area of tobacco control,” said Pritchard.
“Cigarette addiction is the leading cause of preventable death in the United States and having the opportunity for multi-stakeholder dialogue is an essential part of achieving this. I have a tremendous amount of respect for the FDLI, and I look forward to contributing my experience to the organization.”
With respiratory health front and center in everyone’s minds, there has never been a more critical time to advance effective public health policy and regulation in the area of tobacco control.
John Pritchard, vice president of regulatory science, 22nd Century Group
Pritchard started in his regulatory role at 22nd Century in 2019 and brings more than 20 years of scientific and regulatory experience in the tobacco and pharmaceutical industries as well as public health experience to the committee.
April 8, 2021
High Hopes as Zim Tobacco Season Opens

Photo: Taco Tuinstra
Zimbabwe’s tobacco farmers were optimistic about the upcoming marketing season as the markets opened April 7, according to a report in The Chronicle.
The marketing season, which traditionally starts between February and March, was delayed due to Covid-19. The country expects to benefit from high demand with projected volumes at around 200 million kg. An initial crop assessment report indicates that farmers planted 125,177 hectares of tobacco this season compared to 117,049 hectares last season.
TIMB statistics show that by March 19, 2021, a total of 145,625 farmers had registered for tobacco production and selling.
Farmers also look forward to good prices as they have produced a high-quality crop due to the favorable rains.
Under a new foreign currency retention scheme, farmers will receive 60 percent of their tobacco earnings in U.S. dollars and 40 percent in local currency. Last year, the ratio was 50-50.
“The foreign currency will help us break even and remain with a profit,” said George Seremwe, president of the Tobacco Association of Zimbabwe.
The foreign currency will help us break even and remain with a profit.
George Seremwe, president, Tobacco Association of Zimbabwe
Earlier, farmers’ representatives had warned of a debt trap facing Zimbabwean tobacco growers.
Last year, farmers complained after they were hit by the fixed official exchange rate at the start of the season, which did not reflect the real market value exhibited by the volatility of the local currency at that time.
The Tobacco Industry and Marketing Board (TIMB) and the Reserve Bank of Zimbabwe have built up a set of rules to ensure both contractors and farmers are committed and act fairly.
Copies of legally binding contracts were submitted to the TIMB, and the deadline was last September. The contracts had to be supported by proof of inputs distributed using paid up invoices or payment plans with suppliers.
April 7, 2021
‘Tax Hikes Unnecessary After Stimulus Plan’

Photo: AzamKamolov from Pixabay
The recently passed U.S. federal stimulus plan negates the need for tobacco tax increases, according to Tom Briant, executive director of the National Association of Tobacco Outlets (NATO).
As of March 19, lawmakers in 20 states had introduced bills to raise cigarette and/or tobacco product taxes, according to a Convenience Store News report.
At the same time as states were reviewing tax hike proposals, the U.S. Congress recently passed a $1.9 trillion stimulus bill, and President Joe Biden subsequently signed the American Rescue Plan into law.

There is no reason to raise taxes when they have all this stimulus money coming into their state treasury.
Tom Briant, executive director, NATO
“This stimulus plan may be an important factor in determining whether or not states pass legislation increasing cigarette, tobacco and/or vapor taxes,” Briant said during a virtual education session of the Tobacco Plus Expo 2021 in March.
Along with $1,400 individual stimulus checks, the American Rescue Plan includes $350 billion specifically set aside for direct, unrestricted aid to states, cities and counties.
NATO is reaching out to lawmakers in the states with pending cigarette and tobacco tax increase bills with the message that proceeding is not necessary.
“There is no reason to raise taxes when they have all this stimulus money coming into their state treasury,” Briant pointed out.
April 7, 2021
Hanske to Lead SWM’s Tobacco Division

Photo: SWM
SWM International has appointed Katrin Hanske as vice president and general manager of tobacco and alternative solutions (TAS) within its engineered papers division, effective May 1, 2021.
Hanske has more than 20 years of experience in the semiconductor, paper and chemicals industries, most recently as global senior vice president of supply chain operations at Orion Engineered Carbons in Luxembourg. She has worked in the U.S., Asia and Europe and holds a master’s degree in industrial engineering microelectronics from the Dresden University of Technology as well as a bachelor’s degree in business administration from the University of Wolverhampton Business School.
TAS is a new business unit focused on supporting the SWM’s tobacco industry customers with tobacco, paper and next-generation products.
Under Hanske’s leadership, the TAS business will work to strengthen SWM’s position in the tobacco industry while exploring opportunities in alternative markets.
We have a real opportunity to deliver excellence to our tobacco industry customers and to fuel growth opportunities in adjacent areas.
Katrin Hanske
“I am delighted to be joining SWM at an exciting time of transformation for engineered papers,” said Hanske in a statement. “We have a real opportunity to deliver excellence to our tobacco industry customers and to fuel growth opportunities in adjacent areas through innovation and sustainable product offerings. I look forward to being part of this next successful chapter for the company.”
April 7, 2021
Hungary Raises Cigarette Taxes

Photo: Walkerssk from Pixabay
Following a ruling by the Court of Justice of the European Union (CJEU), Hungary has raised the excise tax on tobacco to historic heights, reports Hungary Today.
In March, the CJEU said Hungary had failed to comply with European Union regulations by keeping the excise tax on tobacco products below the required threshold.
Under EU guidelines, the excise tax on tobacco products must reach 60 percent of the average retail price and at least €90 ($107) per 1,000 cigarettes. The 60 percent ratio does not apply to prices above €115 per 1,000 cigarettes.
While the EU argued that Hungary’s lower tax rate distorted competition within the bloc and violated EU health protection regulations, the government said it wanted a gradual hike and a “fairer system”—one that takes into consideration the differences between member states’ tax systems and their populations’ varied income levels.
In the Hungarian government’s view, the EU regulations also neglect the fact that countries on the union’s eastern borders face steeper competition from cigarette smugglers and black market imports.
Following a tax hike of 7.3 percent on Jan. 1, an additional 4.8 percent hike took effect on April 1 in Hungary.
Critics say the recent price increases put cigarettes out of reach for many smokers.
Following the most recent increase, a pack of cigarettes costs HUF1,700–1,800 ($5.62–$5.95), approximately HUF200–250 more than at the end of last year. This means that someone who smokes one pack per day will spend roughly HUF51,000–55,000 per month for cigarettes, which amounts to about half of the current net minimum wage.
In a recent poll, 23 percent of Hungarian smokers said they would quit because of price hike; 10 percent said they would switch to roll-your-own tobacco; and 8 percent would switch to vaping products. Twenty-two percent insisted they would keep smoking.
There are roughly 2.5 million smokers in Hungary, nearly one-third of the adult population.
April 7, 2021
IOTO Expands Into Hemp Sheets

IOTO will leverage its experience in tobacco to serve the hemp industry.
(Photo courtesy of IOTO)
IOTO International, a U.S. and Brazil-based manufacturer of homogenized wrapper, cut filler and binder, has expanded its Yerba Mate, Chamomile and other herbal homogenized sheet offerings to include premium reconstituted hemp sheet.
Utilizing qualified and tested hemp flower, leaf or stem supplied by customers (or directly sourced locally by IOTO), the company is now able to offer customized manufacture of hemp sheet to the specific herbal content requirements of its clients.
“Demand for hemp smoking wrappers in the USA has increased exponentially over the last two years as brand developers have brought novel hemp cigarettes, cigars, hemp wrappers and hemp cones to the market,” said Helder Tullio, director of operations at IOTO, in a statement.
“Unfortunately, the majority of the hemp wrap available today is generic and not crafted to meet the specific smoking qualities required by brand owners.
At IOTO, we are set up to run both small-scale and high-volume production, and we are able to meet the specific formulation needs of the client.
We can help make smaller brands more viable and give them real points of differentiation.
Helder Tullio, director of operations, IOTO
“Given our scaled manufacturing approach, we can work with smaller initial production runs and ultimately grow with brand owners as sales volumes expand. In effect, we can help make smaller brands more viable and give them real points of differentiation from the generic hemp wrapper offerings that are in the market today.
“The IOTO hemp wrapper is a highly durable hemp sheet, and we believe our manufacturing process gives us a distinct edge over competitors and delivers a superior quality hemp sheet for clients. In addition, IOTO’s capabilities in flavor development also help our customers meet their targeted taste profile requirements when making flavored hemp sheet.”
April 7, 2021
Menthol Market to Grow Despite Restrictions

Photo: simisi1 from Pixabay
Demand for menthol is projected to grow even as authorities restrict its use in cigarettes, according to a new report published by Transparency Market Research.
The authors of the study expect the market to reach $1.2 billion by 2030, partly because of the continuing popularity of menthol cigarettes.
Menthol is a crystalline organic compound that can be synthesized or derived naturally from plants such as peppermint, mint oil and corn mint. Menthol is utilized in an extensive variety of confectionary items, such as candies, cough drops and chewing gums, because of its high nutritional and medicinal value.
It is also utilized in pharmaceuticals, such as in inhalation items and ointments. Such extensive use of the product is estimated to foster growth of the global menthol market in the years to come. Menthol is traditionally extracted by collecting and processing mint leaves. Changes in climatic conditions, on the other hand, appear to affect the total supply of menthol and cause instability in the global menthol market in the near future.
Despite the U.S. Food and Drug Administration’s continuing scrutiny of the health quotient associated with menthol, these products have stayed free from significant regulatory bans across the globe, resulting in steady development in the global menthol market. This trend is expected to continue throughout the assessment timeframe. Another major factor anticipated to augment market growth is high demand for menthol from the food and beverage sector. There is a growing demand for sweet-tasting flavorings, especially among the young adults around the world, which is likely to foster growth of the global menthol market in the years to come.
Menthol cigarettes have a sizable market share in the combustible cigarette market. Furthermore, the menthol market is expected to expand at a steady rate as a growing number of new smokers choose menthol cigarettes over traditional cigarettes. While sales of menthol cigarettes continue to rise year after year, increasing public awareness about the adverse effects of tobacco products and tobacco is predicted to stifle demand for menthol cigarettes later during the forecast timeframe.
In May 2020, the EU banned sales of menthol cigarettes. Critics have accused the tobacco industry of sidestepping the ban with innovative products. While cigarette manufacturers have developed alternatives for former EU menthol smokers, they insist their new products comply with the law.
According to a recent article in The New York Times, the likelihood of a ban on menthol cigarettes in the United States is increasing as the impact of menthol cigarettes on Black Americans becomes clearer.
April 7, 2021
Organigram buys The Edibles & Infusions Corp

Photo: Erin Stone from Pixabay
Organigram Holdings has acquired The Edibles & Infusions Corp. (EIC) in a CAD35 million ($27.88 million) stock deal, reports Reuters.
EIC specializes in pot edibles, like gummy bears, brownies and drinks, and have been the biggest beneficiaries of increased demand for cannabis products during coronavirus lockdowns.

Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories.
Greg Engel, CEO, Organigram
“Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories,” Organigram Chief Executive Greg Engel said.
In March, British American Tobacco announced it would buy a nearly 20 percent stake in Organigram for about £126 million ($174.30 million) as it looks to diversify beyond its main tobacco business.
Organigram said it currently expects first sales of EIC-manufactured soft chews in the fourth quarter of fiscal 2021.
The Toronto Stock Exchange has approved the EIC deal, according to Organigram.
April 7, 2021
Researchers Urge Refresh of Warnings

Image: ITCPEP
While Canada’s plain tobacco packaging laws substantially reduced pack appeal, they have not made smokers take greater notice of the pictorial health warnings, according to a new report published by the International Tobacco Control Policy Evaluation Project (ITCPEP).
Canada introduced plain packaging in 2019 as part of a comprehensive suite of policies to help reduce tobacco use to 5 percent by 2035.
The regulations apply to packaging for all tobacco products, including manufactured cigarettes, roll-your-own products, cigars, pipe tobacco, smokeless tobacco and heated-tobacco products.
Vapor products are not covered under these regulations because they are not classified as tobacco products under the Canada’s Tobacco and Vaping Products Act.
In 2001, Canada became the first country to require graphic health warnings on cigarette packs. The images are periodically refreshed. The most recent switch of pictures took place eight years ago.
The ITCPEP survey showed that the share of smokers who did not like the look of their cigarette pack after the implementation of plain packaging in Canada increased from 29 percent in 2018 to 45 percent in 2020.
However, there was no significant change in the percentage of smokers who said they usually notice warning labels first when looking at a cigarette pack (35 percent in 2018 versus 36 percent in 2020).
Based on their findings, the report’s authors recommend refreshing Canada’s eight-year-old pictorial health warnings to address wear-out of health warning salience and effectiveness
As of July 2020, plain packaging has been fully implemented in 14 countries: Australia (2012); France and the United Kingdom (2017); New Zealand, Norway and Ireland (2018); Uruguay and Thailand (2019); Saudi Arabia, Turkey, Israel and Slovenia (January 2020); Canada (February 2020); and Singapore (July 2020).
By January 2022, Belgium, Hungary and the Netherlands will have fully implemented plain packaging.
April 6, 2021
Bangladesh: Smokeless Tobacco Avoiding Tax

Photo: Thouhid Pie from Pixabay
Less than half of smokeless tobacco (SLT) factories in Bangladesh pay taxes, reports the Dhaka Tribune, citing a recent study by the Campaign for Tobacco-Free Kids (CTFK). Of the 483 factories in the country, only 218 are paying taxes.
Some of these manufacturers do not have valid trade licenses: Of the 88 manufacturers surveyed over 29 districts of the country’s eight administrative divisions, who are out of the tax net, 33 percent did not have valid licenses.
The study also showed that 91 percent of manufacturers produce smokeless tobacco products manually and that they are primarily manufactured in small, unmarked factories or houses.
“SLT use should be reined in for the sake of revenues and public health,” said Zakia Sultana, National Board of Revenue member. “Reducing SLT use would also reduce health sector expenditure.”
The study identified the informal nature of smokeless tobacco production as the main impediment in ensuring tax compliance in this sector.
April 6, 2021