Category: News This Week

Malaysians Want Action on Black Market

Photo: Alex Gresbek from Pixabay
Ninety-seven percent of Malaysians would want the government to take immediate action against illicit tobacco sales, reports The New Straits Times, citing a nationwide survey conducted by British American Tobacco (BAT).
The black market for tobacco products causes the government to miss out on more than MYR5 billion ($1.178 billion) in tax collections, according to BAT.
The survey noted that an overwhelming majority (88 percent) of Malaysians believe the tobacco black market was impeding the nation’s Covid-19 economic recovery.
Participants in the survey said the top three factors sustaining the illegal tobacco sales are corruption (38 percent), high excise duties (27 percent) and insufficient resources for enforcement agencies to tackle the issue (19 percent).
BAT Malaysia Managing Director Jonathan Reed said the company welcomed the enthusiastic response to its Stop the Black Market campaign.
Since going live on July 6, 2020, the campaign’s website has had more than 30,000 unique visits.
Tobacco Reporter covered Malaysia’s struggle with illicit trade in its February issue.
August 4, 2020
Former PMI Strategist to Lead Taat Lifestyle

Setti Coscarella (Photo courtesy of Taat Lifestyle & Wellness)
Taat Lifestyle & Wellness has appointed Setti Coscarella as its chief executive officer as the company prepares for the launch of its Beyond Tobacco cigarettes in the fourth quarter of 2020.

Previously, Coscarella was a lead strategist for reduced-risk products (RRPs) at Philip Morris International (PMI). His leadership and execution at PMI led to the launch of numerous initiatives that collectively yielded a fivefold increase in leads and purchases for RRP.

Beyond Tobacco cigarettes contain a proprietary blend of tobacco flavoring but no nicotine and no tobacco. The product has been designed to offer a user experience that closely resembles that of smoking a traditional cigarette, featuring a familiar traditional “stick” format and cigarette-style packaging.

Each stick contains at least 50 mg of cannabidiol, which has been shown to mitigate tobacco withdrawals and reduce dependency upon tobacco. Beyond Tobacco is to be offered in an “original” and a menthol variety.

“The molecule in our tobacco-free and nicotine-free cigarettes is delivered in a near-identical format to legacy tobacco products, and I strongly believe that smokers would be eager to make the switch if presented with the option,” said Coscarella.

“The early-stage market research results for Beyond Tobacco reflect an extraordinary reception of the product among smokers, and I am very eager to be in the driver’s seat of Taat as we approach the planned launch of Beyond Tobacco in Q4 2020.”
August 4, 2020
BAT Vaccine May Start Clinical Trials Soon

Image: Gerd Altmann from Pixabay
British American Tobacco’s (BAT) experimental Covid-19 vaccine may start clinical trials within weeks, reports Bloomberg, citing BAT Chief Marketing Officer Kingsley Wheaton.
The maker of Lucky Strike cigarettes said it expects a response from U.S. Food and Drug Administration (FDA) any day now.
Kingsley Wheaton
“We’re optimistic,” Wheaton said. “It’s an important part of our strategy to try and build a better tomorrow.”
In April BAT announced it was developing a Covid-19 vaccine from tobacco leaves and could produce 1 million to 3 million doses per week if it got the support of government agencies and the right manufacturers.
Earlier this year, BAT submitted a pre-investigative new drug application to the FDA. It is also talking with other government agencies about the vaccine.
Multiple companies from a variety of sectors have been racing to develop a vaccine for Covid-19, with some of the vaccines already in human trials. Experts have suggested that a Covid-19 vaccine could take 12-18 months to develop.
BAT said it has committed funds to conduct clinical trials. The company has reportedly also invested in additional equipment to boost capacity. The company’s investment in a Covid-19 vaccine were covered in-depth in Tobacco Reporter’s June issue.
Medicago, a biotechnology company partly owned by Philip Morris International, is also developing a plant-based vaccine that could be available in the first half of 2021.
There are 24 vaccine candidates in clinical trials, though nine out of 10 such programs typically fail during trials, according to the World Health Organization.
August 4, 2020
Campaigning Against Underage Access

Photo: VPZ
The U.K. Vaping Industry Association (UKVIA) has teamed up with Trading Standards to prevent the underage sales of vapor products across the country.
With the support of Buckinghamshire & Surrey Trading Standards, the association has published the Preventing Underage Sales Guide—the first of its kind published by the U.K. vapor industry.
John Dunne
The guide covers current vaping age legislation in England, Wales, Scotland and Northern Ireland; use and best practice enforcement of the Challenge 25 rule; and dealing with the issue of proxy purchasing where an adult buys on behalf of someone under 18. It also advises on different forms of ID that can be accepted and methods of deception to be aware of as well as points to consider with digital age verification.
“The legal age to buy vaping products is 18, and we want to keep it that way by making it as hard as possible for minors to get their hands on vaping devices and e-liquids,” said John Dunne, director at the UKVIA. “This guide is designed to ensure consistency and high-level standards across the industry when it comes to age verification.”
August 4, 2020
India Delays New Health Warnings

Image: PixaBay
The health ministry of India has deferred implementation of its new pictorial health warnings for tobacco products. The new warnings will be enforced from Dec. 1 instead of Sept. 1.

Public health advocates criticized the postponement.

“By delaying the next round of pictorial warnings on tobacco products, the health ministry is not only contradicting its own advisory to hold back tobacco use during the Covid-19 pandemic, it is adversely impacting the motivation of tobacco users to quit while being in conducive environment socially,” said Rakesh Gupta, a consultant working for Tobacco Cessation.

Some 270 million adults in India consume tobacco, which is blamed for more than 1.3 million premature deaths every year.

The Global Adult Tobacco Survey 2016–17 showed that 62 percent of cigarette smokers and 54 percent of bidi smokers said they had thought of quitting because of the mandatory 85 percent pictorial warnings on packs. Forty-six percent of smokeless tobacco users thought of quitting because of warnings on smokeless tobacco products.
August 4, 2020
Cigarette Sales Up in South Korea

Photo: KT&G
Sales of cigarettes in South Korea rose 3.8 percent in the first half of 2020, according to data compiled by the Ministry of Economy and Finance.

South Korean smokers purchased 34.8 billion cigarettes from January until June, compared with 33.4 billion cigarettes in the same period last year.

Meanwhile, sales of heat-not-burn tobacco products fell 6.6 percent to 180 million units in the first half of 2020. Sales of e-cigarettes plunged 80.3 percent to 1.2 million pods during the period as the government strongly advised people against vaping.

The longer-term trend of tobacco sales remains firmly downward. Compared with the first half of 2014, cigarette sales declined 14.7 percent.

In January 2015, South Korea increased the price of cigarettes by 80 percent to KRW4,500 ($3.76). In 2016, it required tobacco companies to place graphic images depicting the harmful effects of smoking on cigarette packs.
August 4, 2020
JT Requests Permission to Raise Prices

Photo: Colleen Williams
Japan Tobacco (JT) has applied to the Ministry of Finance for approval to amend the retail prices of its tobacco products in Japan in conjunction with the planned excise tax increase on Oct. 1, 2020, and the increase of excise tax on tobacco vapor products.
The company has applied for the retail price amendment for a total of 224 products, including 136 cigarette products, 16 cigarillo products, three pipe tobacco products, three cut tobacco products, 18 snuff tobacco products and 48 tobacco vapor products.
The proposed retail prices will take effect on Oct. 1, 2020, subject to approval from the Ministry of Finance.
August 3, 2020
U.S. Clears Limbe Leaf Imports From Malawi

Photo: Taco Tuinstra
U.S. Customs and Border Protection (CBP) has cleared tobacco imports from Malawi by Limbe Leaf Tobacco Co.
As of July 31, tobacco imported from Limbe Leaf is again admissible at all U.S. ports of entry. CBP previously denied these tobacco imports entry into the United States based on suspicion that they were produced using forced labor.
CBP lifted its ban based on a rigorous evaluation of Limbe Leaf’s social compliance program and efforts to identify and minimize the risks of forced labor from its supply chain. According to the agency, these actions produced evidence that sufficiently supports the company’s claims that tobacco from its farms is not produced and harvested using forced labor.
Earlier this year, CBP cleared Malawi tobacco sold by Alliance One International for entry into the U.S.
August 3, 2020
InterTabac Adapts to Pandemic

Intertabac before the coronavirus pandemic
Photo: Messe Dortmund
Due to the coronavirus pandemic, the InterTabac and InterSupply trade fairs will take place in the form of an “ITS Hub” this year. Scheduled for Nov. 3-4, 2020, the event will combine elements of a physical event and virtual platform.
“Our event brings together the best of both worlds, reflecting the diversity of the tobacco industry and tobacco production, and merging the advantages of a conventional trade fair and an online event,” said Sabine Loos, managing director of Westfalenhallen Unternehmensgruppe.
According to Loos, the event will feature physical zones where companies can present their products and then move to separate “communication islands” for further discussions or product samples. The physical areas have been designed with partition walls and adequate space to allow for social distancing. In addition, the event will have a stage and a video spot connecting the real world and the digital world.
The central point of contact on the Internet is a digital platform on which visitors aged 18 and over will be able to register and follow the program on site.
“When it comes to the live streaming of the on-stage program and individual product presentations—complete with simultaneous interpreting—we’ll be using tools to enable direct interaction, ensuring everyone has as ‘normal’ a trade fair experience as possible,” said Loos.
“We are also currently preparing offerings such as tobacco product samples that exhibitors and partner organizations will be able to send to verified users’ homes,” said Loos. “This means that one of the signature aspects of InterTabac and InterSupply—smelling, tasting and experiencing the various products—will be preserved even during the current pandemic.”
Access to the online content will be free of charge.
The next regular-format InterTabac and InterSupply shows are scheduled for Sept. 16-18, 2021.
August 3, 2020
BAT Uganda ‘Resilient’ in Difficult Environment

Photo: Taco Tuinstra
British American Tobacco Uganda (BATU) reported first-half 2020 results with gross revenue down by 12 percent to UGX76 billion ($20.6 million) and pre-tax profits at UGX9.9 billion.
“I am pleased to report that BAT Uganda’s business continues to show resilience despite the difficult operating environment in the country,” said BATU Managing Director Mathu Kiunjuri.
“With rising unemployment and a significant increase in the cost of various basic consumer goods, the [Covid-19] pandemic has left many consumers more cash stretched than ever. Additionally, the closure of retail outlets led to constrained consumer access to our products. Despite these challenges, our business continues to be resilient due to prudent cost management measures undertaken to mitigate the decline in revenue.”
July 31, 2020