Category: News This Week

  • Imperial Celebrates Women’s Day

    Imperial Celebrates Women’s Day

    Alison Clarke
    (Photo: Imperial Brands)

    Employees of Imperial Brands are taking part in a series of online activities today to celebrate International Women’s Day (IWD).

    The event aims to highlight the significant benefits of gender balance to society and to the business and the acts people can take as individuals to call out gender bias.

    The program of events has been arranged by a group of employees from various parts of the Imperial business and builds on a range of country-specific activities held in recent years. 

    Attendees will hear presentations and stories from senior female leaders in the business, including Chief People and Culture Officer Alison Clarke, and several external speakers. Among the attendees will be Imperial Brands’ chair, Therese Esperdy, and Imperial Brands’ CEO, Stefan Bomhard, who will make an opening address.

    The theme of this year’s International Women’s Day is Choose To Challenge. “This is the culture we want to build at Imperial: a culture of individuals that think for themselves and bring their best game every day because they feel they belong and are included,” said Bomhard in a statement.

    “We are building a company with a challenger mindset and that means having a diverse population of employees who are open to change and new ideas.”

    Imperial is committed to increasing female representation with senior management roles to 30 percent by 2023. Last year, Imperial conducted a global diversity and inclusion study, and the results will help shape the company’s new culture and ways of working in support of its new strategy.

  • VPR Brands Sues for Patent Infringement

    VPR Brands Sues for Patent Infringement

    Photo: VPR Brands

    VPR Brands has filed lawsuits against three more vapor companies for violating its “auto draw” patent. The cases are in addition to suits filed against three other companies in February.

    Granted in 2009, the patent covers vaping products containing an electric airflow sensor, including a sensor comprised of a diaphragm microphone. The sensor turns the battery on and off and covers auto-draw, buttonless e-cigarettes, cigalikes, pod devices and vaporizers using an airflow sensor.

    “Just this week, we have filed three additional lawsuits, which brings the total to six with many more expected and likely as almost every company in the vape space has at least one product which uses the patented ‘auto draw’ technology.” said Kevin Frija, CEO of VPR Brands, in a statement. “We will be aggressively pursuing every company infringing on our patent no matter how small or how large they may be.”

    VPR Brands and SRIPLAW, an intellectual property firm, have started to identify and notify companies they suspect of infringing on the VPR patent. Most recently, VPR Brands and SRIPLAW filed litigation against Mong, B&G Trading and Lightfire Holding. The three previous suits were filed against Jupiter Research, Cool Clouds Distribution and XL Vape.

    “We want to make sure VPR Brands’ patent, which is valid until 2030, is enforced and our intellectual property rights are protected,” said Frija. “We intend to send a clear message to the industry that we mean business and of course, as they say, ‘business is business,’ it’s nothing personal; in the end, its just business.”

  • KT&G to Hold Annual General Meeting

    KT&G to Hold Annual General Meeting

    KT&G will hold its 34th annual general meeting (AGM) of shareholders on March 19, 2021, at 10 a.m. Korea Standard Time.

    The meeting will be held in Vision Hall at the KT&G Human Resources Development Institute in Daejeon.

    Shareholders who attend the AGM are required to attend with their social security ID cards (proof of investment for foreign residents) and can exercise their voting rights indirectly using a proxy statement.

    KT&G solicits the exercise of voting rights by proxy.

    To secure shareholders’ safety and prevent infection or spread of Covid-19, the company recommends exercising voting rights by using the e-proxy system rather than attending the AGM.

    If an amendment motion is submitted on an item at the shareholder meeting, the votes previously submitted via the e-system are regarded as abstained.

    KT&G posted record financial results in 2020. An agenda of the AGM is available here.

  • PMI Launches Inclusivity Initiative

    PMI Launches Inclusivity Initiative

    Sikle Muenster (Photo: PMI)

    Philip Morris International (PMI) has launched a year-long research and convening initiative titled “Inclusive Future.” The initiative will explore best practices and established thought leadership to advance the discourse surrounding inclusivity and devise effective and timely ways to promote inclusive cultures.

    “Measuring diversity is the easy part. Measuring and understanding inclusivity is far more complex as we discovered through trialing inclusivity measurement efforts at PMI,” says Silke Muenster, chief diversity officer at PMI, in a statement.

    “While established frameworks, language and tools exist for measuring inclusivity today, it is clear that they are far from adequate. In the context of a world that shifted radically in 2020, this new initiative will help us to develop compelling ways to further inclusion within the PMI global organization and, we hope, beyond our walls as well.”

    The Inclusive Future work will unfold in phases over the next 12 months, starting with a quantitative and qualitative exploration of the state of inclusion today. This facet of the study will feature a year-long research partnership with the Institute for Management Development in Lausanne, Switzerland, to study how inclusion is currently measured and how this should evolve to drive impact. This will culminate in the publication of the Inclusive Future study results in March 2022.

    As part of the initiative launch, Muenster will participate in a virtual event on International Women’s Day hosted by flagship SHE media site BlogHer alongside other female change makers dedicated to advancing economic empowerment for women everywhere. She will also speak on a high-level panel at the Gender Summit on March 10.

  • German Vapor Tax Proposal a ‘Disaster’

    German Vapor Tax Proposal a ‘Disaster’

    Plans by Germany’s governing coalition to tax vapor products are a disaster for public health and the economy, according to the country’s e-cigarette trade association, VdeH. The move will make vapor products more expensive than combustible cigarettes, which are widely acknowledged to be considerably more harmful to health.

    Under the plans, e-liquids will attract a tax of €4 per 10 mL bottle from July 1, 2022. On Jan. 1, 2024, the tax will increase to €8 plus VAT, i.e. €9.52 per 10 mL bottle. Based on an average sales price of about €5 per bottle, this amounts to a tripling of the retail price, says VdeH.

    “These tax plans leave you stunned, and one initially suspects a calculation error,” said Michal Dobrajc, executive chairman of the VdeH, in a statement. Such a price increase, he added, could only have been passed with the intention to kill off vaping.

    While not opposing e-cigarette taxation as such, the VdeH said fiscal measures should weigh the risks of vaping against those of smoking. Based on what is known about those relative risks, the tax on vapor products should not exceed 5 percent of that on tobacco products, according to the association. The governing coalition’s plans amount to 75 percent of the tobacco tax in Germany.

    The VdeH urged the German government to heed the experience of other countries.

    A similar tax policy in Italy caused the vapor market to collapse even as tobacco sales increased. Tax collections shriveled and the black market thrived. The Italian government was eventually forced to reduce the tax burden on vapor products by 90 percent. Estonia and Hungary had comparable experiences.

    The biggest losers of the governing coalition’s plans, according to the VdeH, are former smokers who successfully quit their habit with the help of e-cigarettes and current smokers who will not attempt to switch under the new tax regime. A police union has already described the tax plans as a “startup for smugglers,” the association noted.

  • More Tobacco Use During Lockdown

    More Tobacco Use During Lockdown

    Photo: Tobacco Reporter archive

    Pandemic-related anxiety, boredom and irregular routines were cited as major drivers of increased nicotine and tobacco use during the initial Covid-19 lockdown, according to research just released by Columbia University’s Mailman School of Public Health. The study highlights ways that public health interventions and policies can better support quit attempts and harm reduction, both during the Covid-19 pandemic and beyond. The findings are published in the International Journal of Drug Policy.

    Between April and May 2020, the researchers conducted telephone interviews with adults across the United States who use cigarettes and/or electronic nicotine-delivery systems (ENDS), such as e-cigarettes. Participants in the study were recruited using an advertisement campaign on Facebook and Instagram. During this window, nearly 90 percent of the U.S. population experienced some form of state lockdown, with 40 states ordering nonessential businesses to close and 32 states enacting mandatory stay-at-home orders. At the time of their interviews, all participants were voluntarily isolating at home unless required to leave the house.

    Nearly all participants reported increased stress related to Covid-19—namely, fears about the virus, job uncertainty and the psychological effects of isolation—and described this as the primary driver of increased nicotine and tobacco use. Decreased use, while less common, was prevalent among “social” tobacco users, who cited fewer interpersonal interactions during lockdown and a fear of sharing products.

    At the community level, retail access impacted cigarette and ENDS use differently. While cigarettes were universally accessible in essential businesses, such as convenience stores and gas stations, access to preferred ENDS products was more limited since vape shops and other specialty ENDS retailers were typically deemed nonessential and required to close or limit hours. This drove some ENDS users to order their products online, which often resulted in long wait times due to shipping delays or product backorder as a result of high demand. As a result, some dual users of cigarettes and ENDS increased their use of readily available cigarettes.

    “Pandemic response policies that intentionally or inadvertently restrict access to lower risk products—through availability, supply chains or even postal service slowdowns—while leaving more harmful products widely accessible may have unintended consequences that should be considered during policy development,” said Daniel Giovenco, assistant professor of sociomedical sciences at Columbia Mailman School and the study’s lead author.

    Given that tobacco use behaviors are expected to increase among some individuals during this sustained period of uneasiness, Giovenco and colleagues proposed several key policy recommendations: expansion of cessation resources and services, including their adaptation for remote delivery; establishment and enforcement of smoke-free home rules to protect household members; and enabling equivalent access to lower risk products—such as ENDS and nicotine-replacement therapy—to facilitate harm reduction among those who cannot or do not want to quit using nicotine at this time.

    “While quantitative, survey-based studies provide valuable insight into changes in tobacco use during lockdown periods, existing research has drawn mixed conclusions. Our approach was the first to qualitatively capture the complex drivers and mechanisms that may help explain varied behavioral shifts,” noted Giovenco. “Covid-19 mitigation strategies to curb transmission will likely continue for the foreseeable future, with many permanently altering elements of the workplace, education and consumer behaviors. Our findings can help tailor intervention and policy work to address multi-level determinants of tobacco use in the Covid[-19] era and the years ahead.”

  • FDA Asked to Help Correct Misperceptions

    FDA Asked to Help Correct Misperceptions

    Photo: Martinmark | Dreamstime.com

    The Altria Group has asked the U.S. Food and Drug Administration (FDA) for help in convincing Americans that nicotine isn’t linked to cancer. In a letter to the regulatory agency, the maker of IQOS and Juul products asked for the FDA to assist in combatting misperceptions about nicotine as part of a proposed $100 million advertising campaign to reduce the harm caused by tobacco.

    According to a letter seen by Bloomberg, Altria writes that nearly three-fourths of U.S. adults incorrectly believe nicotine causes cancer, citing government research. Clearing up the drug’s health risks will be key to the agency reducing smoking combustible cigarettes because it will help convince cigarette users to switch to noncombustible options for nicotine, the company said.

    While there are at least 60 carcinogens in cigarette smoke, nicotine isn’t the direct cause of many of smoking’s ills. The drug has even been touted as a way to ease tension and sharpen the mind. But nicotine is the ingredient that addicts people to tobacco products, and it has risks, according to the National Institute on Drug Abuse.

    The FDA “should commit resources and expertise to correct the deeply entrenched public misperceptions regarding the health risks of nicotine,” Paige Magness, Altria’s senior vice president of regulatory affairs, said in the letter dated Feb. 25. Such a campaign would help the agency by getting more smokers to use noncombustible offerings that “may present lower health risk,” according to the letter.

    The FDA declined to comment, according to Bloomberg.

  • Alarm About Proposed Open System Ban

    Alarm About Proposed Open System Ban

    Photo: Olgacanals | Dreamstime

    Millions of vapers could feel forced to return to smoking if national governments adopt a proposal from the World Health Organization (WHO) on e-cigarettes, warns the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA)

    A new report published by the WHO’s tobacco regulatory committee recommends nearly all vapes—especially “open systems”—be banned. It also demands existing restrictions on cigarettes be applied to emerging products, presumably so smokers won’t learn about them.

    In the open system, which is the preferred way of vaping for many people across Asia, the consumer manually refills the liquid to be vaporized. According to the WHO, this system allows for the addition of substances that could make the product more harmful.

    “The latest recommendation from WHO defies all logic,” said Nancy Loucas, the executive coordinator of CAPHRA, in a statement. “If countries adopt the recommendation to ban open system vapes, years of hard work by ex-smokers as well as good public policy will be rendered meaningless.”

    “Let there be no doubt: Vapers will then go back to cigarettes, which is the worst possible outcome.” 

    “Banning any product is not the answer nor is applying blanket cigarette rules to all emerging products. Bans encourage the black market. Bans do not allow for proper consumer protection,” Loucas said.

    CAPHRA is calling on governments to adopt evidence-based, common sense regulations for all vaping products.

    “Just last week, the U.K.’s leading health agency, Public Health England (PHE), concluded that nicotine vaping products were the most popular aid used by smokers trying to quit,” Loucas said.

    “On the one hand, you have a local public health agency looking into the evidence and ways in which smokers can be encouraged to quit smoking and vape, and on the other, you have a global agency stuck in their old ways of believing prohibition is the answer to everything.”

    “WHO’s attitude to e-cigarettes has been devastating for millions and millions of smokers and vapers alike all around the world,” Loucas said.

    CAPHRA said it’s only through regulating products that vapers can remain protected, encouraged to stop smoking and, as a result, achieve good public health outcomes.

  • Swedish Match Plans Annual Meeting

    Swedish Match Plans Annual Meeting

    Photo: Swedish Match

    Swedish Match will hold its annual general meeting on April 13.

    Due to the continued Covid-19 pandemic, the meeting will be conducted pursuant to so called mail-in procedures, meaning that no shareholders will attend the gathering in person or through proxy. Instead, shareholders can participate in the meeting by voting and submitting questions in advance pursuant to the instructions described here.

    Swedish Match posted record sales and operating profit in 2020, finishing the year with top-line growth across all product segments.

    Performance was driven by strong traction for ZYN nicotine pouches in the U.S. along with double-digit operating profit growth in local currencies for the smoke-free and cigar product segments in both the full year and the fourth quarter, the company announced in February.

  • Covectra Appoints New Directors

    Covectra Appoints New Directors

    Covectra, a supplier of serialization and track-and-trace solutions for tobacco and other applications, has appointed Renaat Van den Hooff and Gary Miloscia to its board of directors, effective Feb. 15, 2021.

    Van den Hooff brings more than 35 years of global operating experience in the healthcare industry, with specific expertise in consumer pharmaceuticals, medical devices and supplies/services for the pharmaceutical industry. He held various senior leadership positions as CEO and board member of Temptime Corp. and as president and CEO of a public startup healthcare company that developed and sold innovative wound care products. He had a 20-year career with Johnson & Johnson, serving the latter time there as president of the J&J-Merck consumer pharmaceuticals joint venture worldwide.

    Miloscia has more than 22 years of experience in management. He currently serves as chief financial officer for Covectra where he is responsible for all strategic business and financial planning and analysis as well as marketing activities. Prior to joining Covectra, he held senior level positions at Fidelity Investments, Health Dialog and American Express.

    “On behalf of the entire board of directors, it is a pleasure to welcome Renaat and Gary, two highly accomplished industry veterans, to our team,” said Steve Wood, president and CEO of Covectra, in a statement. “Their collective experience across a range of diverse strategic roles will be highly instrumental as we continue to advance our product development and build out our pipeline. I look forward to working with them and leveraging their unique expertise.”