Category: News This Week

Nicaraguan Cigar Festival Goes Virtual

Photo: Nicaraguan Chamber of Tobacco
Puro Sabor, the annual festival put on by the Nicaraguan Chamber of Tobacco, will be held virtually on March 15, reports Halfwheel.

“The Nicaraguan cigar industry is once again opening the doors of its factories but this time in an innovative digital format,” said Claudio Sgroi, president of the Nicaraguan Chamber of Tobacco. “Visitors will be able to virtually join Nicaragua’s most important tobacco producers and cigar manufacturers.”

The event will be presented by Light ’em Up World, a European-based digital platform focused on cigars.

The virtual event will include a series of master classes, panel discussions and round tables covering 11 topics, ranging from growing tobacco to blending, production and marketing. There will also be sessions focused on technology and innovation in the cigar industry and corporate social responsibility.

Reinhard Pohorec of Light ’em Up World and Ra’ed Saqfelhait of the Leaf Master Dubai will moderate and host the event.

Registration is required.
March 10, 2021
Cerulean Offers Aerosol Measurement
Cerulean has launched a new stand-alone Aerosol Temperature Measurement System (ATMS), the company announced on its website.
The ATMS is designed for research and quality assurance applications to measure the temperature of aerosol generated from e-cigarettes and heated-tobacco products.
The ATMS monitors and records aerosol temperature on a puff-by-puff basis in real time and is available in multiholder configurations of one, four, five, eight, 10 and 20 channels.
Comprising a supplied portable computer with an intuitive user interface and ISO-compliant Cambridge Filter Holders, the ATMS can be fitted to any vaping machine and will record and display in real time the aerosol temperate during the experiment.
March 10, 2021
Illegal Tobacco Destroyed in Australia
Australian authorities destroy illicit tobacco at Beverford
(Video: OTA)
Australian law enforcement officers uncovered more than 40 hectares of illegal tobacco on properties on either side of the Victoria-New South Wales (NSW) border, reports The Australian Taxation Office (ATO). Based on the excise that would be charged on legal tobacco of the same weight, the tobacco’s potential value was estimated at $84.3 million.
More than 183 tons of tobacco was found during raids on a property at Kyalite, in southwest NSW. The Natural Resources Access Regulator participated in the action to investigate possible water theft.
“That’s the biggest crop we have discovered to date,” said Australian Border Force Commander Greg Linsdell, who headed up the taskforce.
Another crop was found on the same day at Beverford, on the Victorian side of the border, where ATO officers destroyed 183 tons of illicit tobacco along with 140 kg of processed tobacco bales.
The next day, another 60.7 tons of illicit tobacco was seized and destroyed on a third property at nearby Vinifera.
That’s the biggest crop we have discovered to date.
Gred Linsdell, head of The Illicit Tobacco Taskforce
Tobacco cultivation has been illegal in Australia for more than a decade. The country’s illicit tobacco market is worth about $822 million a year in evaded revenue. Linsdell said many organized crime syndicates, including outlaw motorcycle gangs, were involved in illegal tobacco production. “[The proceeds] are going into the hands of criminals to be used for other crimes, and buying this stuff, supporting this market, is a crime as well,” he said.
While charges were yet to be laid, those convicted of tobacco cultivation face penalties of up to 10 years behind bars.
March 10, 2021
BAT Announces Investment in Greece

Photo: BAT
British American Tobacco (BAT) will invest €30 million ($35.72 million) and create 200 new jobs in Greece, reports The National Herald, citing a company announcement. The investment will reportedly focus on BAT’s Glo Hyper tobacco-heating product.
BAT has paid €3.2 billion in taxes and social insurance contributions in recent years, supporting around 30,000 workers in its retail and distribution network and 10,000 workers in tobacco production.
BAT invests heavily in research and the development of new alternative smoking products. Globally, more than 1,500 scientists and specialists work at its R&D centers.
Originally launched in Japan, Glo Hyper came to Greece in 2018.
March 10, 2021
Securience and VapinDirect Merge

Photo: Alexas Fotos
Securience is merging with VapinDirect, an online vaping wholesaler. The parent to the DuraSmoke, Forge, AmericaneLiquidStore, and VapeMoar brands will officially become a part of VapinDirect beginning March 31, 2021, according to an email to its customers.
Last month, Securience announced it would be shuttering its business. In a letter to its partners, the company attributed its decision to a recent amendment of the Prevent All Cigarette Trafficking (PACT) Act outlawing the shipping of vapor products through the U.S. Postal Service (USPS).
“A top priority of ours has always been to ensure guidelines and legal rules are held to the utmost standards,” the company wrote in its most recent message. “PACT Act raises these standards, and we want to ensure all our customers that they will be maintained. This merger will allow us to continue to distribute products business to business.”
Based in Green Bay, Wisconsin, USA, VapinDirect will take over Securience’s manufacturing capabilities in Wauwatosa, Wisconsin. VapinDirect will also be adding thousands of products to Securience’s existing catalog.
“VapinDirect is larger and thus more financially stable, having about [five times] our employment level, and thus better able to manage growth and change in the industry,” Securience wrote. “Our existing employees will be added to their team and will continue to use the same ISO-certified processes and equipment in the same Wauwatosa location.”
The company will be contacting its wholesale customers over the coming weeks to introduce VapinDirect and clarify its shipping procedures. “There are many other challenges within the industry concerning PACT and this merger is one of the many ways we will continue to find a way,” the email states.
March 9, 2021
BATSA Calls for Inquiry Into Illicit Trade

Photo: Tobacco Reporter archive
British American Tobacco South Africa (BATSA) is calling for an urgent inquiry into the country’s booming illicit cigarette market.
In some provinces, three out of every four retail outlets are selling a pack of 20 cigarettes below the minimum collectible tax rate (MCT) of ZAR20.01 ($1.30), according to a recent study by Ipsos.
The market research company found brands registered to Gold Leaf Tobacco Corp. to comprise half of all products selling below the MCT. Brands registered to Carnilinx were the next most prevalent, being identified as the cheapest brands on sale in 16 percent of the nationally representative sample of retailers visited, with 48 percent of these selling Carnilinx brands at below the MCT.
“These results are outrageous,” said BATSA general manager Johnny Moloto in a statement. “Even allowing for some of these purchases being stolen, smuggled or counterfeit stock, the sheer volume and range of brands available suggests that some manufacturers must be complicit in the sale of these products—whether through omission or active facilitation. There is no other plausible explanation.”
These results are outrageous.
Johnny Moloto
“South Africa urgently needs an uncompromising, comprehensive investigation into all players in the industry,” Moloto said. “We need a Commission of Inquiry as well as rapid enforcement by SAPS and SARS.”
March 9, 2021
South Africa: Cigarette Ban ‘Successful’

Photo: Heinrich Botha from Pixabay
A recent study shows that South Africa’s cigarette ban in 2020 helped reduce the number of lung disease-related emergency room visits, reports Herald Live.
South Africa banned tobacco sales from March to August 2020 to help prevent the spread of the coronavirus. In December, the country’s High Court ruled that the measure was unconstitutional. The government is appealing the judgment.
Published in the African Journal of Primary Health Care & Family Medicine, the study showed that emergency center visits for chronic obstructive pulmonary disease (COPD) at the George Regional Hospital in the Western Cape fell by 69.28 percent between January and August 2020 compared with the same period in 2019.
Whilst the tobacco sales ban has had detrimental effects on economy, one of the benefits has been a reduction in emergency center attendance of patients with COPD exacerbations compared with that during the same period from the previous year.
“This notable reduction in COPD presentations reduced service pressure of emergency center and most likely benefited patients’ health,” the study states. “Whilst the tobacco sales ban has had detrimental effects on economy, one of the benefits has been a reduction in emergency center attendance of patients with COPD exacerbations compared with that during the same period from the previous year. Further research and policies are needed to ensure ongoing reduction in the prevalence of smoking.”
According to the study, only 9 percent of smokers quit during the lockdown.
An online survey of smokers found that 93 percent maintained their habit by paying up to 250 percent more for illicit products.
South Africa, Botswana and India implemented smoking bans as part of their Covid-19 restrictions. India’s ban lasted six weeks, Botswana’s ban lasted 12 weeks and South Africa’s ban lasted five months.
March 9, 2021
Economic Zone Probes Cigarette Companies

Image: Tobacco Reporter archive
The Philippine Economic Zone Authority (PEZA) and the Bureau of Internal Revenue (BIR) are investigating two unnamed PEZA-registered cigarette manufacturers, reports the Manila Bulletin.
The manufacturers were allegedly “found to be deficient in compliance with BIR registration requirements for cigarette manufacturers.”
“PEZA continues with its own investigation into this matter and had earlier withheld import shipments of these enterprises until a Writ of Preliminary Injunction was issued by the Court,” a statement read.
PEZA stated that “other cigarette manufacturers registered with PEZA engage [in] best practices, such as JT [Japan Tobacco] International Asia Manufacturing Corp.” PEZA also stated it will apply its own rules and regulations relating to potential penalties against the manufacturers. “This is distinct and different from whatever penalties BIR may impose upon these enterprises.”
“Along with BIR and BOC [Bureau of Customs], PEZA vows to strengthen, integrate monitoring, compliance systems and processes in our economic zones to prevent smuggling, promote efficient tax collection, preserve investors’ cooperation, and maintain their trust and confidence in the government’s policies and processes,” noted Charito “Ching” Plaza, PEZA’s director general. The organization will coordinate with the Philippine National Police, the Armed Forces of the Philippines, local government units and other agencies.
March 9, 2021
U.S. Vapor Mail Ban Reverberates Worldwide

Photo courtesy of UKVIA
The impact of the pending U.S. restrictions on shipping vapor products is being felt internationally. The U.K. Vaping Industry Association (UKVIA), for example, has expressed “deep concern” about the measures, saying that U.K. businesses are affected.
In late December, Congress voted into law a $2.3 trillion coronavirus relief and government funding bill that contains a provision banning the U.S. Postal Service (USPS) from delivering vapor products.
The USPS was already prohibited from delivering cigarettes and smokeless tobacco products to consumers under the PACT Act. The law passed in December extends the act’s original definition of “cigarette” to include electronic nicotine-delivery systems.
Tobacco and vapor companies may use private services to ship their products to consumers, but the PACT Act requires them to register with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the tobacco tax administrators of the states into which a shipment is made. Delivery sellers are further required to verify the age and identity of the customer at purchase and maintain records of delivery sales for a period of four years after the date of sale, creating substantial administrative burdens.
Critically for the vapor industry, the most popular carriers, Federal Express (FedEx) and United Parcel Service (UPS), have recently announced that they would cease all deliveries of vapor products.
“We have had orders not being collected, and our own shops not receiving stock in a reliable manner, all of which impacts customers,” said Joe Bevan, director of UKVIA member Celtic Vapours. “As the majority of our business is currently online, we need efficient delivery of stock to provide the quickest service.”
We have had orders not being collected, and our own shops not receiving stock in a reliable manner, all of which impacts customers.
Joe Bevan, director, Celtic Vapours
“At a time when many vapers are unfortunately unable to visit their local vape store, this is making it even more difficult for them to receive the consumable products they rely upon,” said Richard Russell, operations manager at Vape Distribution. “Certain carriers perhaps don’t realize that this action could lead vapers to revert back to smoking.”
“The vaping supply chain is a global one, bringing together resources and expertise from around the world,” said John Dunne, director general at UKVIA. “It is bitterly disappointing to see these American restrictions having a negative impact in the U.K., but the nature of the supply chain makes it inevitable. In the EU, too, we are hearing of vaping businesses being turned away from major carriers.
John Dunne
“We have had orders not being collected, and our own shops not receiving stock in a reliable manner, all of which impacts customers,” said Joe Bevan, director of UKVIA member Celtic Vapours. “As the majority of our business is currently online, we need efficient delivery of stock to provide the quickest service.”
“At a time when many vapers are unfortunately unable to visit their local vape store, this is making it even more difficult for them to receive the consumable products they rely upon,” said Richard Russell, operations manager at Vape Distribution. “Certain carriers perhaps don’t realize that this action could lead vapers to revert back to smoking.”
“The vaping supply chain is a global one, bringing together resources and expertise from around the world,” said John Dunne, director general at UKVIA. “It is bitterly disappointing to see these American restrictions having a negative impact in the U.K., but the nature of the supply chain makes it inevitable. In the EU, too, we are hearing of vaping businesses being turned away from major carriers.
“The potential impact on public health is grave as so many people are relying on shipped goods as a lifeline during the pandemic. Without proper access to harm-reduction products, we know people can revert to smoking cigarettes—today in the U.S. but perhaps tomorrow in the U.K. With businesses already struggling through lockdown and our health services under great strain, supply chain issues really are the last thing we need.
“I call on the distribution industry, many of whom have been partners of the vaping industry for many years, to do all they can to support their U.K. customers and to avoid the blanket implementation of U.S. restrictions worldwide.
“Furthermore, I call on the U.K. government to ensure that carriers in this country are free to continue to deliver vaping products to retailers and direct to consumers and to resist any urge to follow the U.S. down this regressive route.”
March 8, 2021
U.S. Graphic Health Warnings Delayed Again

Image: FDA CTP
A district court judge in Texas has again delayed the effective date for graphic health warnings on U.S. cigarette packs, according to reports in The Winston-Salem Journal and Lexus Legal News. The new date is April 14, 2022, pushed back from Jan. 14, 2022.
This marks the third delay for the warnings. On May 8, 2020, a court ordered the effective date to be delayed from June 18, 2021, to Oct. 16, 2021, because of the coronavirus. In December, Judge J. Campbell Barker further postponed the new requirements to Jan. 14, 2022, agreeing with the tobacco industry’s assertion that question about the validity of the rule remain unanswered.
The Food and Drug Administration released its final rule requiring new graphic warnings for cigarettes in March 2020. The rule calls for labels that feature some of the lesser known health risks of smoking, such as diabetes, on the top half of the front and back of cigarette packages and at least 20 percent of the area on the top of cigarette advertisements.
The warnings include statements that tobacco smoke can harm children and that smoking can cause bladder cancer and neck and head cancer.
The 11 new warnings must be randomly and equally displayed and distributed on cigarette packages and rotated quarterly in cigarette advertisements.
In April and May 2020, cigarette manufacturers and retailers sued the FDA, arguing that the graphic warning requirements amount to governmental anti-smoking advocacy because the government has never forced makers of a legal product to use their own advertising to spread an emotionally charged message urging adults not to use their products.
In the more recent challenge, tobacco companies argued that the deadline was too onerous due to the impact of the Covid-19 pandemic. “These expenditures of resources for the purpose of meeting the rule’s requirements constitute irreparable harm because plaintiffs cannot recover money damages should the rule and/or the graphic warning requirement in the Tobacco Control Act be invalidated,” the companies said in a legal filing.
This is the Food and Drug Administration’s second attempt to enact graphic health warnings under the 2009 Family Smoking Prevention and Tobacco Control Act. The first rule was struck down by the federal court in the District of Columbia as a violation of the First Amendment.
March 8, 2021