Category: News This Week

  • Malunga Named CEO Tobacco Commission

    Malunga Named CEO Tobacco Commission

    Photo: Taco Tuinstra

    Joseph Chidanti Malunga has been hired as the new chief executive officer of the Tobacco Commission, reports Malawi24.

    Malunga replaces Kayisi Sadala, whose contract has expired.

    Malunga was previously spokesperson for United Transformation Movement (UTM), a political party, and a lecturer at the Lilongwe University of Agriculture and Natural Resources.

    He served as legislator for Nsanje South West from 2014 to 2019.

    The Tobacco Commission regulates the production and marketing of tobacco in Malawi.

  • BAT Cleared in Corruption Probe

    BAT Cleared in Corruption Probe

    Britain’s Serious Fraud Office (SFO) has closed its investigation into potential corruption at British American Tobacco (BAT), citing lack of evidence, reports The Daily Mail.

    In 2017, the fraud team launched an investigation over allegations that BAT paid bribes in east Africa to undermine anti-smoking policy.

    On Friday, the SFO confirmed that the results of its investigation and review “did not meet the evidential test for prosecution.”

    BAT welcomed the SFO’s announcement. “BAT is pleased that the SFO has closed its investigation and that the SFO is taking no further action in respect of this matter,” the firm wrote in a statement to shareholders.

    Paul Hopkins, who worked for BAT in Kenya for 13 years, told BBC’s Panorama in 2015 he had begun paying bribes after being told it was the cost of doing business in Africa. “The truth is that we do not and will not tolerate corruption, no matter where it takes place,” BAT told Panorama at the time.

    In April, BAT said it was also under investigation in the U.S. for a possible breach of sanctions.

    The London-based firm said it was cooperating with the Justice Department and the Treasury Department’s Office of Foreign Assets Control, which enforces economic sanctions.

  • States Fail to Invest in Tobacco Prevention

    States Fail to Invest in Tobacco Prevention

    U.S. States are failing to invest proceeds from the 1998 Tobacco Master Settlement Agreement (MSA) into tobacco prevention funds, according to a new report from the Campaign for Tobacco-Free Kids (CTFK), American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, Robert Wood Johnson Foundation and Truth Initiative shows

    “This year (fiscal year 2021), the states will collect $26.9 billion from the 1998 tobacco settlement and tobacco taxes,” the CTFK wrote in a statement. “But they will spend a paltry 2.4 percent—just $656 million—on tobacco prevention and cessation programs. The total is an 11 percent decrease from last year and less than a fifth (19.8 percent) of the total funding recommended by the Centers for Disease Control and Prevention (CDC).”

    Alaska (89.7 percent), Maine (87.4 percent) and Utah (79.4 percent) are the only states to provide at least three-quarters of the CDC-recommended funding for tobacco prevention and cessation programs.

    Tobacco companies spend more than $13 to market tobacco products for every $1 the states invest to reduce tobacco use, according to the CTFK. According to the most recent data from the Federal Trade Commission (for 2018), the major cigarette and smokeless tobacco companies spend $9.1 billion a year on marketing.

  • Swisher Announces Executive VPs

    Swisher Announces Executive VPs

    Photo: Jakub Jirsák | Dreamstime.com

    Swisher has named Joe Augustus, Chris Casey and Lee Creasman executive vice presidents. They will continue to report to John J. Miller, president. Glenn Goodroe was also named executive vice president and will continue to report to Lou Caldropoli, chief operations officer.

    Augustus, previously senior vice president of global affairs, will continue to lead corporate global affairs, international sales and distribution and will now also oversee Swisher’s inclusion, diversity and transformation program and Swisher’s corporate citizenship initiatives. Alexandria Deal, manager of diversity, inclusion and transformation, will now report to Augustus.

    Casey, previously senior vice president and general counsel, leads the company’s legal and regulatory departments and the corporate secretary’s office.

    Creasman, previously senior vice president of human resources, is responsible for leading the talent strategy for Swisher, including recruiting, the HRIS system and organizational development.

    Goodroe, previously senior vice president of operations, is responsible for manufacturing, operations and supply chain. He is a member of the senior leadership team reporting to Lou Caldropoli, chief operations officer.

    “The new level of executive vice president, along with the recent announcement of John Haley as chief growth officer and the 2017 announcement of Lou Caldropoli as chief operations officer, strengthens our senior leadership team for the execution of future growth plans,” said John Miller, president of Swisher, in a statement.

  • New Jersey Prioritizes Smokers for Vaccine

    New Jersey Prioritizes Smokers for Vaccine

    Photo: torstensimon from Pixabay

    Smokers in New Jersey are now eligible to receive the Covid-19 vaccine, along with other groups that the state considers to be at risk for severe complications from the virus, reports The New York Times. Those groups include those 65 and older and younger people with underlying health problems, including cancer, heart conditions and diabetes.

    The announcement came a day after the Trump administration told states to expand eligibility and to quickly use existing vaccine or risk losing future allocations.

    New Jersey’s decision to immediately adopt all of the recommendations by the Centers for Disease Control and Prevention (CDC) for priority vaccination has prompted a backlash because it puts these groups ahead of some essential workers, including teachers.

    On Friday, Governor Philip Murphy called criticism that smokers were jumping the line a “cheap shot” and a “false narrative,” noting that the state is hewing closely to CDC guidelines.

    The CDC includes smoking on a list of medical conditions that it recommends be prioritized in state vaccination programs because of the higher risk of serious complications from Covid-19. But to date, only one other state, Mississippi, appears to have authorized vaccinations for people younger than 65 based solely on the criterion that they smoke cigarettes.

    New Mexico and Texas have made people with other high-risk medical conditions eligible for the vaccine, but not smokers. Alaska, Maine, Massachusetts and North Carolina include smokers, but not until later phases.

    As of Friday, New Jersey had administered less than half of the 658,800 doses of vaccine shipped to the state, according to the CDC, a rate that lags behind most other states in the Northeast.

  • David Kessler to Help Lead Vaccine Drive

    David Kessler to Help Lead Vaccine Drive

    Photo: Dimitri Houtteman from Pixabay

    U.S. President-elect Joe Biden has chosen David Kessler, the ex-head of the Food and Drug Administration (FDA), for a senior role in the new administration’s efforts to boost the availability of Covid-19 vaccines, reports Reuters.

    A pediatrician and lawyer who headed the FDA under presidents George H.W. Bush and Bill Clinton, Kessler will be chief science officer of the administration’s Covid-19 response.

    In the tobacco industry, Kessler is best known for his efforts to assert FDA authority over tobacco.

    During his tenure, the FDA attempted to regulate tobacco products as “delivery devices for the drug nicotine” to bring tobacco products under FDA jurisdiction. Tobacco companies challenged the rules all the way to the Supreme Court and won (FDA v. Brown and Williamson Tobacco Corp.).

    The Supreme Court ruled that “Congress has clearly precluded the FDA from asserting jurisdiction to regulate tobacco products.”

    Kessler’s wish to see tobacco regulated by the FDA was eventually granted by Congress in June 2009 through the bipartisan passage of the Family Smoking Prevention and Tobacco Control Act.

    Kessler is not the first tobacco foe to join the Biden administration’s Covid-19 response team. In December, Biden appointed Bechara Choucair—a board member at the Campaign for Tobacco-Free Kids—as vaccinations coordinator.

    Biden has vowed to get 100 million Covid-19 vaccine doses injected into Americans in his first 100 days in office.

  • FDA Starts Enforcement Against Illegal ENDS

    FDA Starts Enforcement Against Illegal ENDS

    Photo: Jhvephotos | Dreamstime.com

    The U.S. Food and Drug Administration (FDA) has sent its first set of warnings letters to manufacturers of electronic nicotine delivery devices (ENDS) that did not submit premarket tobacco applications by the Sept. 9 deadline.

    On Jan. 15, the agency issued warning letters to 10 firms who manufacture and operate websites selling ENDS products, specifically e-liquids, advising them that selling these products, which lack premarket authorization, is illegal, and therefore they cannot be sold or distributed in the U.S.

    Per court order, applications for premarket review for certain deemed new tobacco products on the market as of Aug. 8, 2016—including e-liquids—were required to be submitted to the FDA by Sept. 9, 2020. For companies that submitted applications by that deadline, the FDA generally intends to continue to defer enforcement for up to one year pending FDA review, unless there is a negative action taken by the FDA on the application.

    The FDA plans to post a list of products for which the agency has received applications; however, before making such a list available, the FDA is verifying certain information about these products so that publication of a list complies with federal disclosure laws.

    Stephen Hahn

    “The premarket application process ensures that new tobacco products, including many already on the market, will undergo a robust scientific evaluation by the FDA,” said FDA Commissioner Stephen M. Hahn in a statement. “Scientific review of new products is a critical part of how we carry out our mission to protect the public—especially kids—from the harms associated with tobacco use. In addition to the important premarket scientific review, prioritizing enforcement against those who violate the law by selling unauthorized products is how we help protect public health.”

    The 10 firms receiving warning letters are Little House Vapes; Castle Rock Vapor; Dropsmoke; Perfection Vapes; CLS Trading; Session Supply Co.; Coastal E-Liquid Laboratory/GC Vapors; Dr. Crimmy; CMM Capital LLC; and E-Cig Barn.

    Mitch Zeller

    “These warning letters are the result of continued surveillance and internet monitoring for violations of tobacco laws and regulations,” said Mitch Zeller, director of FDA’s Center for Tobacco Products. “We want to make clear to all tobacco product manufacturers and retailers that the FDA is keeping a close watch on the marketplace and will hold companies accountable for breaking the law.”

    The FDA has requested responses from each firm within 15 working days of receiving the letter detailing how each company intends to address the agency’s concerns.

  • The Blinc Group Raises $1.5 million

    The Blinc Group Raises $1.5 million

    Photo: Tobacco Reporter archive

    The Blinc Group has raised $1.5 million in bridge financing. The company will use the proceeds to expand its team, develop new materials and vape technologies, and open an office in Toronto.

    Arnaud Dumas de Rauly

    “The Blinc Group puts quality and safety at the forefront of its vape technology and since day one, that dedication to the highest standards has brought us the endorsement of institutional investors focused on the cannabis industry,” said Arnaud Dumas de Rauly, CEO and co-founder of the Blinc Group, in a statement.

    “Our team navigated 2019’s vape crisis helping set standards and advise regulators on testing and compliance, and last year the company saw our best quarter yet amid the Covid-19 pandemic as the industry learned the benefits of safety and traceability.”

    In 2020, Blinc Group more than tripled its orders with more than 330 percent year-on-year growth, showcasing the technology company’s ability to scale and flourish in a difficult regulatory landscape. The group attributes much of its success to the emphasis it places on safety and compliance.

    “We began underwriting our initial investment in Blinc near the onset of the so-called vape crisis in 2019 and it became quickly apparent that the team’s experience within the vape technology space and its focus on quality, traceability and customer service would see them through and enable them to emerge as a market leader,” said Andi Goldman, managing member and co-founder of the Equitas Partners Fund.

    “We have watched the Blinc team over the past few years as they have grown their business and dedicated their focus to safety and traceablity within the vape hardware sector,” said Michael Mitgang, managing director and co- founder of the WGD Opportunity Fund. “Blinc’s reputation for putting these important factors first has secured customer wins with some of the leading cannabis operators in North America.”

    “The vape category is one of the primary revenue drivers in every market and satisfies the demands of some of the most committed cannabis consumers. Providing high-quality products is a must for any brand looking to win and retain loyal shoppers,” said 7thirty’s Director of Research, Ben Richardson.

     

  • SFATA Elects Board of Directors

    SFATA Elects Board of Directors

    Image: SFATA

    The Smoke-Free Alternatives Trade Association (SFATA) has announced the results of its recent board elections. In a press release, the vapor industry organization said Robert Arnold (Saffire Vapor) will return as board treasurer. Also returning are board president and CEO April L. Meyers (Northeast Vapor Supplies), board vice president Dave Morris (Vape Gravy) and acting board secretary Lindsey Stroud (Taxpayers Protection Alliance).

    New to the board this year are Taylor Cage (Trace/Verify) and Shaun Casey (FlavourArt).

    “Our board of directors is comprised of a diverse team of leaders committed to providing strength, longevity and stability to the vapor business community,” said Meyers. “We are excited to channel Taylor and Shaun’s skills, expertise and energy into furthering SFATA’s mission. We are delighted they are participating at SFATA’s board level.”

    Cage and Casey join SFATA as the association prepares to roll-out the trace/verify segment of its Responsible Industry Network (RIN) program. The program’s goals are keeping its member businesses viable and flavored vapor products in the hands of adult consumers, according to the release.

    The 2021 SFATA board will work alongside Executive Director Mark Anton. The board will decide on the association’s annual budget and select its officers during a two-day meeting before March.

  • Cigar Market to Reach $17.3 Billion by 2027

    Cigar Market to Reach $17.3 Billion by 2027

    Photo: Tobacco Reporter archive

    Amid the Covid-19 crisis and the looming economic recession, the global cigar market is projected to reach $17.3 billion by the end of 2027, expanding at a compound annual growth rate (CAGR) of 1.3 percent over, according to a new report published by Research and Markets.

    An unusual period in history, the coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. According to the authors of the report, the cigar market will be reset to a new normal which going forwards in a post Covid-19 era will be continuously redefined and redesigned.

    The United States is forecast to readjust to a 0.7 percent CAGR. Within Europe, Germany will add more than $21.8 million to the region’s size over the next seven to eight years. In addition, more than $33.6 million worth of projected demand in the region will come from other European markets.

    In Japan, the cigar segment will reach $1.1 billion by the close of the analysis period. Amid the growing push for decoupling and economic distancing, the changing relationship between China and the rest of the world will influence competition and opportunities in the cigar market.

    Against this backdrop and the changing geopolitical, business and consumer sentiments, the world’s second largest economy will grow at 3.2 percent over the next couple of years and add approximately $620 million in terms of addressable market opportunity.