Category: News This Week

Worris About New EU Vapor Restrictions
Photo: Tobacco Reporter archive
Vapor advocates have expressed concern about reports that the European Commission is potentially seeking to ban flavored e-liquids.
According to the U.K. Vape Industry Association (UKVIA), leaked EU plans for a “Tobacco Free Generation” would increase controls on e-cigarettes, despite their proven value in smoking cessation efforts.
This latest EU plan could include the following proposals:
Extend taxation to “novel tobacco products,” including e-cigarettes
Extend the coverage of smoking bans, both indoor and outdoor, to vaping
A full ban on flavored products
The enforcement on plain packaging for vaping products
John Dunne
“We at the UKVIA are seriously concerned by reports that the European Commission is considering such regressive action, which will likely reduce the positive impact that vaping has on people’s lives,” said John Dunne, director general of the UKVIA.
“While we completely support efforts to combat the scourge of cancer in our society, the creation of artificial barriers to harm-reduction products is clearly counterproductive. Adult smokers must be empowered to make positive change, rather than being discouraged.
“Cancer Research UK, along with the Royal College of GPs, have confirmed vaping’s significant harm-reduction compared to cigarettes, as well as its efficacy in smoking cessation. The EU’s plans are out of step with this latest evidence.
“It is vital that the U.K. now take advantage of the legislative and regulatory independence afforded by Brexit, to safeguard this country’s proportionate, evidence-based approach to vaping.”
The document was leaked ahead of the announcement today of the EU’s “Beating Cancer Plan,” which among other things calls for reducing tobacco use to less than 5 percent of the EU population by 2040.
February 3, 2021
Eternis Buys Tennants Fine Chemicals

Photo: Eternis Fine Chemicals
Eternis Fine Chemicals, a leading Indian producer of aroma chemicals, has acquired Tennants Fine Chemicals in the United Kingdom and its wholly owned subsidiaries in Singapore and China from Tennants Consolidated.
Tennants Fine Chemicals is one of the world’s leading producers of triacetin, is a plasticizer used in the manufacture of cigarette filters.
As a result of this transaction, Eternis and Tennants Fine Chemicals will expand and complement the range of aroma chemicals offered to customers, while leveraging the multi-location manufacturing and distribution platforms to better service their customers regionally and de-risk their supply chain.
“As we step into 2021, I speak on behalf of the team at Eternis in expressing my excitement with this significant step of successfully completing our first overseas acquisition in our growth journey,” said Rajen Mariwala, managing director of Eternis, in a statement.
“The addition of this large independent, high-end manufacturer enhances our business and brings with it many strategic advantages. We will now have established operations in Europe and Asia, with the ability to service our customers from stock hubs and partners. The combined product offer will position us well for further growth.”
“I see positive outcomes as we enter into this new partnership,” said Billy Gittins, managing director of Tennants Fine Chemicals. “Our combined manufacturing footprint across two key regions will offer better security of supply. Our regional service strategy in China and SE Asia has proved beneficial and will be further strengthened with the addition of Eternis’ products. I am excited about our future together.”
February 3, 2021
KT&G Recognized for Auditing Practices

Hyung-cheol Cha, head of the KT&G audit planning office (right), and Tae-ryong Moon, president of the Korea Audit Association, at the awards ceremony. (Photo: KT&G)
KT&G was awarded the Best Organization Award in the Private Enterprise Sector for Internal Audit at the 2020 Audit Awards hosted by the Institute of Internal Auditors Korea.

The awards ceremony was held to encourage organizations that have contributed to social development through excellent internal audit and compliance monitoring during 2020. KT&G was highly evaluated for its reinforcement of transparency in management through internal audit consistent with global standards.

“KT&G proactively prevents corporate risks through an independent internal audit organization directly under the audit committee, and in the future, we will increase corporate value by operating a leading audit system in line with global standards,” said Hagyeong Do, director of the KT&G audit group, in a statement.
February 3, 2021
EU: Travelers Should Pay Duties at Home Rate

Photo: Ifeelstock – Dreamstime.com
The EU has suggested that consumers buying tobacco and alcohol across borders should pay the duties of their home states rather than the rate of the country in which the products are purchased, reports The Independent.
The EU is also considering mandatory or lower limits on the amount of alcohol and tobacco products that can be brought back from other EU countries for personal use. The proposed changes are meant to help governments recoup lost excise duties and protect public health.
“For both alcohol and tobacco products, the misuse of cross-border shopping rules for private individuals is a source of concern for several EU countries due to lost revenues and the negative impact on the effectiveness of national public health policies,” the European Commission said in the public consultation
The proposed rule would have the greatest impact on Ireland, which is one of the most expensive places in the EU to buy tobacco and alcohol. Northern Ireland too would be included in any future policy change as, under the 2019 Brexit deal, it mirrors EU rules on VAT and excise duties.
The EU public consultation on the issue will remain open until April 23, 2021
February 3, 2021
Keller and Heckman to Hold Vapor Symposium
Keller and Heckman will hold its fifth annual E-Vapor and Tobacco Law Symposium virtually Feb. 9–11, 2021.

The three-day seminar will address legal, scientific and public health issues relevant to the e-vapor and tobacco industries in a post-PMTA world.

The virtual platform will closely replicate the interaction and dynamics of the in-person event, including opportunities to chat with the speakers one-on-one, network with colleagues and participate in discussion forums.

Registration is currently open.
February 3, 2021
Study Backs Tobacco Farming In Malawi
The Lilongwe tobacco auction during Tobacco Reporter’s visit in 2017
Despite the many challenges facing the industry, tobacco has a future in Malawi, reports The Nation, citing a study by the Comesa Business Council.
That is because tobacco contributes significantly to the attainment of at least eight Sustainable Development Goals (SDGs), including zero hunger, quality education, gender equality, decent work, economic growth responsible consumption and production and life on land.
Titled Tobacco Sustainability in Africa, the study found that tobacco production helps farmers get out of poverty, become more food secure send their children to school. It also ensures that both men and women participate in production and guarantees environmental conservation, among others benefits.
Tobacco production supports more than 1.7 Malawians, according to the authors. “The global drive against consumption of tobacco products has a significant impact on the sustainability of the tobacco industry,” the wrote. “This will ultimately affect the tobacco, farmers in tobacco growing countries.”
In a November 2020 statement, the Tobacco Commission, which regulates the tobacco industry, said the future of tobacco remains intact despite the challenges facing the industry.
“The country is yet to identify a competitive crop or another best alternative to tobacco,” the statement read. “Until we reach that stage where we shall have an alternative crop that will be raking in much foreign exchange as tobacco, we will still be relying on tobacco.”
Tobacco remains Malawi’s major foreign currency earner and contributes about 15 percent to the country’s gross domestic product.
The country earned $173.5 million from tobacco exports in 2020, down from $237 million in the previous season.
February 2, 2021
Worries About WHO’s Harm Reduction Stance

Photo: Olgacanals | Dreamstime
In a submission to the U.K. All Party Parliamentary Group for Vaping Inquiry, the International Network of Nicotine Consumer Organizations (INNCO) has expressed its concerns about the World Health Organization’s stance on tobacco harm reduction.
Specifically, INNCO is concerned about the WHO’s treatment of low-risk nicotine products and its refusal to recognize harm reduction principles to lower the disease and premature death caused by use of high-risk forms of tobacco such as combustible cigarettes and certain oral tobacco products.
The U.K. Parliamentary Group’s inquiry is designed to collect evidence and issue a report on the ninth conference of the parties to the WHO Framework Convention on Tobacco Control (COP9), which is scheduled to take place in November in the Netherlands.
The U.K. has taken a pragmatic, humane and effective position on the use of tobacco harm reduction, embracing electronic cigarettes as a complement to traditional tobacco control strategies. Consequently, England has one of the lowest smoking rates in Europe.
Due to the country’s track record in tobacco harm reduction, INNCO believes the U.K. is in a unique position to raise its concerns with the WHO and FCTC.
February 2, 2021
Leonhard Kurz Wins Innovation Award

Photo: Leonard Kurz
Thin-film expert Leonhard Kurz has won third main prize in the Bavarian Innovation Prize for its IMD Varioform with functional in-mold labeling process. This technology allows touch sensors to be deformed in three dimensions, injected with plastic and integrated into geometrically sophisticated and decorated components.
The process was developed to produce plastic parts with extreme 3D geometry, for example, heavily bent, domed or curved shapes. Based on the proven in-mold decoration technology, Kurz was able to effectively combine the previously successive processes of decoration, single-image illumination and capacitive sensor integration into a 3D-shaped HMI component and combine them in a single manufacturing step.
In 2020, the Bavarian Innovation Prize was awarded for the fifth time by the Bavarian State Ministry for Economic Affairs, Regional Development and Energy, the Bavarian Chamber of Commerce and Industry and the Bavarian Chambers of Trades and Crafts Association. It honors outstanding innovation drivers of the Bavarian economy.
February 2, 2021
TPB Announces Private Offering

Photo: Tobacco Reporter achive
Turning Point Brands (TPB) announced the proposed private offering of $250 million aggregate principal amount of its senior secured notes due 2026. The notes will bear cash interest semi-annually beginning in 2021. The notes will be TPB’s senior secured obligations and will be guaranteed on a senior secured basis by each of TPB’s wholly owned domestic subsidiaries (except for certain specified subsidiaries).
TPB intends to use the proceeds from the offering to repay all obligations under and terminate its existing term loan and revolving credit facility; to pay related fees, costs and expenses; and for general corporate purposes. The offering is subject to market conditions.
TPB also announced that in connection with the offering, it intends to enter into a new $25 million senior secured revolving credit facility. The offering is not conditioned on the entry into the revolving credit facility.
In connection with its proposed offering, TPB announced certain preliminary operating results for the fourth quarter and full year ended Dec. 31, 2020.
TPB estimates that for the fourth quarter of 2020 net sales will be between $103.5 million and $105.5 million, income before taxes will be between $16 million and $17 million and adjusted EBITDA will be between $25 million and $26 million. Each of net sales and adjusted EBITDA will be near or above the high end of TPB’s previously disclosed guidance for the fourth quarter of 2020. TPB plans to release its full year end 2020 financial results on Feb. 10, 2021.
The company will hold a conference call to review fourth quarter and fiscal year 2020 results on Feb. 10.
February 2, 2021
Perfect Score for Altria on Equality Index

Photo: Altria
Altria Group received a score of 100 on the Human Rights Campaign Foundation’s 2021 Corporate Equality Index (CEI), a prominent benchmarking survey and report measuring corporate policies and practices related to LGBTQ workplace equality. Altria joins the ranks of 767 major U.S. businesses, including Reynolds American Inc., that also earned top marks this year. This is the fourth year in a row Altria has received a score of 100.
“We know that to be successful in our 10-year vision to responsibly lead the transition of adult smokers to a noncombustible future, we need to be a diverse, inclusive and welcoming place to work,” said Billy Gifford, Altria’s CEO, in a statement. “This recognition is a testament to our employees and Mosaic, our LGBTQ employee resource group, who continuously work to ensure that our LGBTQ colleagues are included and have equal opportunity to grow and thrive.”
The CEI rates companies on detailed criteria falling under four central pillars: nondiscrimination policies across business entities; equitable benefits for LGBTQ workers and their families; supporting an inclusive culture; and, corporate social responsibility. Altria’s efforts in meeting all of the CEI’s criteria earned a 100 percent ranking and the designation as one of the Best Places to Work for LGBTQ Equality.
February 2, 2021