Category: News This Week

Critics Blast U.K.’s Commitment to Generational Ban

Image: Benjaminet
The new U.K. government’s intention to progressively increase the age at which people can buy cigarettes will not achieve its objectives, according to the smoker’s group Forest.
Responding to an announcement in today’s King’s Speech, the annual ceremony in which the British monarch sets out the policies of and proposed legislation that the government plans to introduce, Forest Director Simon Clark said the measure would fail to stop people smoking. Instead, he warned, it would drive more people to the black market and make smoking cool again.
SImon Clark
Originally proposed by former Prime Minister Rishi Sunak, the generational tobacco ban would make it illegal for anyone born on or after Jan. 1, 2009, to ever legally buy cigarettes, effectively raising the legal age of purchase by one year, every year.
The measure passed its first parliamentary hurdle in April but was put on hold after Sunak, a conservative, called a national election, which was won by the Labour party.
While vowing to ditch many Tory policies, Labour reiterated its commitment to the generational tobacco ban, prompting criticism from smoker rights activists.
“Labour, like the previous Conservative government, is addicted to the nanny state,” said Clark.
“It’s ironic that Labour wants to reduce the voting age to 16 whilst denying adults the freedom to legally purchase cigarettes.
“If you are old enough to drive a car, join the army and buy alcohol, you are old enough to buy cigarettes and other tobacco products.”
The World Vapers Alliance (WVA) echoed the concern about illicit sales.
“It is already clear that the generational smoking ban won’t work, because prohibitions never work,” said WVA Director Michael Landl in a statement. “What makes the plan even worse is the crackdown on less harmful alternatives. Less harmful alternatives like vaping must be key elements of an anti-smoking strategy. Science and real-life examples like Sweden are proof. Harm reduction works, prohibition fails. The U.K. must not go down this path.”
July 17, 2024
KT&G Investor Wants New CEO Pay Structure

Photo: bong
KT&G shareholder Flashlight Capital Partners has demanded a revision of CEO compensation plan to normalize stock price.
“In the recent past, KT&G’s former CEO was awarded a significant amount of compensation despite a 21 percent drop in KT&G’s stock price, while the KOSPI [The Korea Composite Stock Price Index] surged by 27 percent,” said Flashlight Managing Partner Capital Sanghyun Lee in a statement. “In March 2024, we urged the KT&G board to link the CEO compensation to stock performance, but no action has been taken so far,” Lee added.
Under the plan proposed by Flashlight Capital, the CEO will receive a base annual pay of KRW100 million ($72,199) and be granted shares based on stock price milestones over the next three years. For instance, if the stock price doubles, the CEO will be awarded shares worth KRW10 billion.
“Many of the current KT&G board members are under police investigation for potential bribe charges,” Lee highlighted. “Given that KT&G’s stock price is over a 50 percent discount compared to industry peers, we believe doubling the stock price is highly achievable, provided the board act promptly and decisively.”
Flashlight Capital has proposed an extraordinary general meeting for shareholder approval and requested a response from the KT&G board by the end of July.
July 16, 2024
Shannon Marie to Direct PCA Events

Image: jirsak
The U.S. Premium Cigar Association (PCA) has hired Shannon Marie as its new director of trade show and events.
Marie’s first day with the PCA was July 15, 2024. With more than a decade of experience in the events industry, she has spent her professional career helping trade associations grow their event offerings. Marie will work with Lisa Cox, the organization’s senior director of trade shows and events, effective immediately.
“I am excited to see the PCA’s team expand in a critical area so that we can provide additional program offerings for the trade show and events. I know that Shannon will be able to support Lisa in maintaining a best-in-class trade show and add other experiential elements to our marquee event and beyond,” said PCA Executive Director Joshua Habursky in a statement.
Before joining the PCA, Marie held positions within the National Association of Federally Insured Credit Unions (NAFCU), including event producer (2015-2017), associate director of events (2017-2019), senior associate director of events (2019-2022), and director of events (2022-2023).
In addition to managing and directing NAFCU’s conferences and events, Marie built relationships with vendors essential to the organization’s events, helped organize the budget, and dealt with contract needs and other tasks. From 2023-2024, Marie worked as a consultant with the PCA. She assisted in the logistics, contracts and planning of the annual trade show.
July 16, 2024
PMI to Expand Zyn Production

Photo: PMI
Philip Morris International will invest $600 million in in a factory in Aurora, Colorado, USA, to help meet U.S. consumers’ ferocious appetite for the company’s Zyn nicotine pouches. The factory is poised to begin operations by the end of next year with regular production starting in 2026.
“PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” said PMI Americas President and U.S. CEO Stacey Kennedy in a statement.
“We believe Colorado is likeminded in its commitment to innovation, economic opportunity and public health, and we’re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.”
Sales of Zyn jumped 80 percent in the first quarter, leaving PMI struggling to keep up with demand. Retail stores have been experiencing Zyn shortages, with some even limiting the number of cans customers can buy each month.
Supply was further constrained after the company decided to halt online sales nationwide in June following a subpoena in the District of Columbia asking for information on the sale of flavored pouch products that are banned there.
PMI is also increasing production of Zyn at its factory in Owensboro, Kentucky. In addition to meeting U.S. demand, the investments will also help create capacity for exports, according to PMI.
Zyn accounted for more than 70 percent of the $8.6 billion nicotine pouch market in 2023, according to Vaping360. Given the relatively young age of the category, there is little brand loyalty, and analysts believe continued supply constraints may prompt some consumers to defect to other brands.
July 16, 2024
FDA Reposts General Snus MRTP Document

Photo: Swedish Match
The U.S. Food and Drug Administration on July 15 reposted an application document related to the renewal of existing modified risk tobacco product (MRTP) orders for Swedish Match USA’s General Snus products and announced a deadline for public comments.
The reposted document contains information that was previously redacted, and is available on the Swedish Match MRTP application webpage.
Public comments on these applications must be submitted to docket FDA-2014-N-1051-0941 on regulations.gov by 11:59 pm ET on Aug. 14 to ensure they receive consideration by the FDA.
The application materials, redacted in accordance with applicable laws and regulations, can be found on the FDA’s website. Before making a final determination on an MRTP application, the FDA takes into consideration all information available to the agency, including public comments and recommendations from the Tobacco Products Scientific Advisory Committee.
July 16, 2024
Health Groups Contest IQOS Quit Rates

Photo: Arkadiusz Fajer
Anti-tobacco activists are questioning Philip Morris International’s figures on the number of people who have quit smoking using the company’s bestselling heat-not-burn device, IQOS, reports Reuters.
The move comes as the U.S. Food and Drug Administration is considering PMI’s application for renewal of its IQOS3 exposure modification order, along with the company’s premarket tobacco product applications for IQOS Iluma and request for permission to make reduced exposure claims for that product.
In a joint letter to the U.S. Food and Drug Administration, dated June 27, six health groups, including the Campaign for Tobacco-Free Kids, the American Academy of Pediatrics and the American Lung Association, cited yet-to-be published independent studies contradicting PMI’s findings about how many IQOS users completely switch to the device from cigarettes.
According to letter writers, the International Tobacco Control Project (ITC) at Canada’s University of Waterloo found a far lower rate of IQOS users had quit smoking in Japan and Korea than estimates from PMI.
PMI estimates more than seven out of 10 of its registered IQOS customers globally have quit cigarettes. A 2023 PMI application to the FDA emphasized that the majority of IQOS users were using IQOS exclusively.
However, the ITC’s researchers put the percentage of all IQOS users that had quit smoking at just 15 percent in Japan and 30 percent in Korea in 2021.
Users most commonly used IQOS and cigarettes simultaneously, often leading to an overall increase in tobacco consumption, the ITC researchers found.
PMI pointed to a 2019 Japanese government health survey, where 75 percent of respondents who reported using heated tobacco said they did not smoke.
However, a paper published this year, led by researchers from Georgetown University, highlighted flaws in the government’s survey, including changes to the question format that can lead to under-reporting of smoking.
Other surveys have also found higher rates of dual use than the government, it said.
In addition to questioning the smoking cessation rates quoted by PMI, the health groups accused the multinational of making deceptive statements wrongly suggesting that the FDA has found IQOS reduced the risk of disease, citing examples of such statements in the U.S., Kazakhstan, the Philippines and Mexico.
A PMI spokesperson told Reuters the language flagged by campaigners was, in the company’s view, compatible with the FDA’s orders.
“Wherever we discuss our science and our products, we do so in accordance with all applicable laws,” the spokesperson was quoted as saying.
July 16, 2024
Farmers Earn $1.3 Million From Shisha Leaf

Photo: Cavendish Lloyd
Farmers in Zimbabwe have earned $1.3 million so far after selling 92 percent of the projected shisha crop size this marketing season, reports The Herald. The season is coming to a close with only one outstanding sale before the 2024 marketing season ends.
Yield projections dropped from 800,000 kg to 500,000 kg due to the El Nino weather pattern, which caused drought and negatively affected the 2023/2024 agricultural season.
Recent Tobacco Industry and Marketing Board statistics showed that growers sold 387,559 kg of shisha leaf valued at $1.27 million. The average price dropped from $3.44 per kilogram to $3.28 per kilogram. The highest price of the season was $5.70 per kilogram, and the lowest price of the season was $0.75 per kilogram. There has been an 8 percent rejection rate.
“We are left with only one sale to clear all the produced shisha crop,” said Tinashe Mukadzambo, CEO of Cavendish Lloyd, the country’s sole shisha buyer.
The 2024/2025 season is expected to be more lucrative due to forecast La Nina weather patterns. Cavendish Lloyd has begun contracting farmers.
“Growers should have enough arable land for crop rotations, preferably sand to sandy loam soils with priority given to those with a good source of water and can irrigate,” said Mukadzambo. “A risk assessment will be done to check on whether the grower has any outstanding loans from their previous tobacco seasons.”
Shisha production increased 270 percent from 110 hectares during the 2022/2023 season to 407 hectares in the 2023/2024 season. Production is expected to increase to 500 hectares in the 2024/2025 season.
July 16, 2024
Stricter Tobacco Rules in Thailand

Photos courtesy of Mathijs Aliet
Tobacco manufacturers and importers in Thailand will be subject to stricter rules under a new draft regulation approved by the cabinet recently, reports The Pattaya Mail.
Among other provisions, they will have to report the components of their products and the substances released during combustion.
What’s more, tobacco manufacturers may not use flavor additives in their products or label them in a way that implies health benefits or suggests increased vitality.
The regulation sets maximum limits for substances released during combustion. Tar must not exceed 10 mg per cigarette, nicotine must not exceed 1 mg per cigarette, and carbon monoxide must not exceed 10 mg per cigarette.
The regulation also mandates the disclosure of information about the components and combustion byproducts of tobacco products.
The certification fee is set at THB100,000 ($2,768) per certificate and THB2,000 for a replacement certificate. The regulation will take effect 180 days after its publication in the Royal Gazette and will be valid for four years.
July 15, 2024
KTI to Make and Distribute KT&G Products in Europe

Photo: KTI/KT&G
KT International (KTI) will be manufacturing and distributing KT&G’s products in Europe.
Under the terms of an Oct. 20, 2023, agreement, KTI will have exclusive rights to manufacture and distribute KT&G’s products within the EU for three years. KT&G and KTI have agreed to a market entry plan aimed at expanding into strategic markets within the Western European region, with an initial focus on KT&G’s flagship Esse brand, which is the world’s bestselling super-slim cigarette.
“We are delighted to join hands with KTI, a company with a robust footprint across Europe. Having already established a strong market presence in Asia, AMEA and Latin America, we believe that the agreement with KTI will serve as a pivotal step in accelerating our footprint across Europe,” said Chad Sul, general manager of KT&G’s Europe office.
“After three years of collaborative efforts leading to the signing of this agreement, we see a strong cultural fit between our two companies. Also, we expect the synergy between our complementary brand portfolios to strengthen the market position of both companies. A significant amount of time had been taken to structure a competitive business model and to develop an innovative and consumer relevant product portfolio that is consistent to the global objectives and standards of KT&G. We thus look forward to a long and fruitful partnership between our companies,” said Stuart Buchanan, chief commercial officer of KTI.
KT&G is a leading tobacco manufacturer in South Korea and the fifth-largest in the world by sales volume, with an annual sales revenue of approximately KRW6 trillion ($4.34 billion). Established in 2008, KTI is one of Europe’s fastest growing independent tobacco companies.
July 15, 2024
Pharmacy Rules Boosting Illicit Vapes

Photo: Doublelee
The Australian government’s plan to make pharmacies the gatekeepers of vaping will push more young people onto the black market, according to illicit trade experts, reports Financial Review.
Nicotine levels found in wastewater in December were among the highest since authorities started recording them in 2016, a trend that the health department attributes to the rise of vaping among young people.
An Australian Criminal Intelligence Commission report last week found that nicotine consumption had risen from August in capital cities to their second-highest level since 2016. The peak use of nicotine was in December 2022.
Federal Health Minister Mark Butler announced in May last year that the government would increase tobacco excise by 5 percent a year for three years to deter smoking.
“Studies have confirmed that the rise in vaping over the last decade has driven more young Australians to nicotine consumption,” a federal health department spokesman said, adding that the nicotine data also captured people using nicotine patches and gum to quit smoking.
Since July 1, vape sales in Australia require a doctor’s prescription, nicotine levels are regulated, and flavors are limited to tobacco, menthol and mint. Another requirement restricts products to plain packaging.
July 15, 2024