Category: News This Week

  • R.J. Reynolds Launches Velo Nicotine Lozenges

    R.J. Reynolds Launches Velo Nicotine Lozenges

    Photo: RJRVC

    R.J. Reynolds Vapor Company (RJRVC) is expanding its modern oral portfolio with Velo dissolvable nicotine lozenges.

    A leading modern oral nicotine brand globally, Velo-branded products in the United States are designed to provide adult tobacco consumers with innovative, enjoyable alternatives to traditional combustible and smokeless tobacco.

    RJRVC says the decision to offer Velo nicotine lozenges reflects the company’s commitment to meeting adult nicotine consumers’ changing preferences and desire for convenience, simplicity and choice.

    “We are pleased to expand the Velo product portfolio to better provide adult nicotine consumers with a range of sensorial, modern oral nicotine options,” said Shay Mustafa, senior vice president for modern oral at RJRVC. “Bringing Velo nicotine lozenges to our portfolio reiterates our commitment to empower consumer choice and to provide adult nicotine consumers with products that fit modern lifestyles.”

    Velo-branded dissolvable nicotine lozenges are currently available for adult nicotine consumers to responsibly purchase at select retailers in Atlanta, Charlotte, Columbus, Houston, Las Vegas, Philadelphia and online at www.velo.com.

    In addition to dissolvable hard and soft format lozenges in four flavors, Velo offers adult nicotine consumers disposable nicotine pouches in varying strengths and flavors.

  • Tobacco Earnings Top $110 million

    Tobacco Earnings Top $110 million

    Photo: Taco Tuinstra

    Malawi has earned $110.2 million from tobacco sales since the start of the marketing season 11 weeks ago, reports Xinhua News Agency

    According to recent statistics from Auction Holdings Limited (AHL) Malawi, tobacco markets across the country have traded 72.7 million kg of leaf at an average price of $1.51 per kg.

    Tobacco growers have expressed dissatisfaction with the current prices, but Tobacco Commission CEO Kaisi Sadala said he expects prices to increase as new buyers enter the country.

    “The coming in of new buyers into the country means that there is going to be some kind of competition on the market hence the rise of prices; farmers should not lose hope, rather they should keep bringing their good quality products to the markets,” said Sadala.

    Tobacco is Malawi’s biggest export crop, accounting for more than 50 percent of all foreign currency receipts.

  • Environmental Leadership Recognized

    Environmental Leadership Recognized

    Photo: Evelyn Chai from Pixabay

    Altria Group’s greenhouse gas emissions reduction targets have been approved for the first time by the Science Based Targets initiative (SBTi). The Scope 1 and 2 target covering greenhouse gas emissions from Altria’s operations is consistent with reductions required to keep warming to 1.5 degrees Celsius, a goal that the latest climate science says is needed to prevent the most damaging effects of climate change. The Scope 3 target meets the criteria for ambitious value chain goals and current best practice.

    “We believe it’s important to continually work to address important social and environmental challenges,” said Jennifer Hunter, senior vice president, corporate citizenship at Altria. “This is why we’ve set a higher bar and reset our long-term goals, including achieving 100 percent renewable electricity by 2030, 100 percent water neutrality annually, and aligning our business with the most ambitious greenhouse gas emissions reduction targets designated by the SBTi.”

    In addition to SBTi approval, for the third year in a row Altria has been named to CDP’s Water A-List, among only 2 percent of disclosing global companies in 2019, and is recognized on CDP’s 2019 Climate Change survey as a global leader for engagement with suppliers on climate change.

    More than 900 companies have committed to the SBTi, and just over 400 have SBTi-approved targets. SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

    The SBTi defines and promotes best practice in science-based target setting and independently assesses companies’ targets.

    Altria’s recently released 2019 Corporate Responsibility Progress Report details the company’s continued progress on these environmental goals and on Altria’s four responsibility priorities: reducing the harm of tobacco products, including preventing underage tobacco use; marketing responsibly; managing our supply chain responsibly; and developing our employees and culture.

  • Turning Point Exceeds Quarterly Expectations

    Turning Point Exceeds Quarterly Expectations

    Photo: Stocksnap from Pixabay

    Turning Point Brands (TPB) announced preliminary sales results for the second quarter ended June 30, 2020, in connection with the underwritten secondary offering by certain of its stockholders of 2 million shares of TPB’s common stock. TPB plans to release its full second-quarter 2020 financial results along with updated full-year guidance on July 28, 2020.

    During the second quarter of 2020, preliminary estimates of net sales exceeded $100 million compared to net sales guidance of $81 million to $87 million provided on April 28, 2020. All segments outperformed management expectations for the second quarter of 2020.

    In the smokeless segment, the secular consumer downtrading trends that accelerated earlier in the year continued during the quarter as the Stoker’s MST line continues to build momentum and gain consumer acceptance.

    In the smoking segment, sales benefited from increased consumption, new product penetration and recently implemented growth initiatives, which offset the Covid-related supply chain disruption experienced in the MYO cigar wraps business. In the new generation segment, market share gains and new product introductions returned the segment to positive year-over-year sales growth.

    TPB announced the pricing of the previously announced underwritten public offering of 1.8 million shares of company common stock by Standard Diversified and an aggregate of 200,000 shares of company common stock by funds affiliated with Standard General (the Standard General funds) at an offering price of $23.50 per share. In addition, the Standard General funds have granted the underwriter the option to purchase up to 215,000 shares of the company’s common stock from them to cover over-allotments, which will be exercisable for two business days.

    The selling stockholders will receive all the net proceeds from the offering. The closing is expected to occur on or about July 13, subject to customary closing conditions. The shares are listed on the New York Stock Exchange under the symbol TPB.

  • FDA Accepts Premarket Applications for Leap

    FDA Accepts Premarket Applications for Leap

    E-Alternative Solutions (EAS) has received acceptance and filing letters from the U.S. Food and Drug Administration (FDA) for its Leap and Leap Go products.

    EAS is now in the substantive review phase of the premarket tobacco product application (PMTA) process. If successful, this phase will result in marketing orders from the FDA authorizing the continued marketing and sale of these products.

    “The substantive review is where our months of hard work assembling more than 100,000 pages of evidence will pay off in supporting our proposition that the Leap and Leap Go products are appropriate for the protection of public health,” said Chris Howard, vice president, general counsel and chief compliance officer at EAS.

    “We are looking forward to continued collaboration with [the] FDA in the weeks and months to come and remain optimistic that the PMTA process will result in marketing orders.”

  • Smoore Raises $918 Million in Hong Kong

    Smoore Raises $918 Million in Hong Kong

    Photo: Timonthy Donahue

    Smoore International has raised $918 million in its initial public offering (IPO) at the Hong Kong Stock Exchange, reports Reuters. The deal is the largest IPO in Hong Kong since the start of 2020.

    The Shenzhen, China-based firm offered 574 million shares, according to the company’s prospectus, and had indicated the stock would be priced between HKD9.60 ($1.24) and HKD12.40 per share.

    The largest investors were Huaneng Trust, which took $80 million worth of stock, and Prime Capital which took $50 million, according to Smoore’s prospectus.

    In 2019, Smoore reported a profit of CNY2.17 billion ($307.8 million), up from CNY733.9 million one year earlier.

    Smoore is due to start trading on the Hong Kong Stock Exchange on Friday.

  • FDA Grants IQOS Exposure Claim

    FDA Grants IQOS Exposure Claim

    Photo: PMI

    The U.S. Food and Drug Administration (FDA) on July 7 issued exposure modification orders to Philip Morris Products’ (PMP) IQOS heat-not-burn device system (holder and charger) and three Marlboro Heatstick variants.

    The FDA previously authorized the marketing of IQOS without modified risk information in April 2019 via the premarket tobacco application pathway.

    In its most recent ruling. the FDA determined that IQOS does not currently meet the standard for marketing with reduced-risk claims but can be marketed with a reduced-exposure claim.

    Specifically, the FDA is allowing the company to claim:

    • The IQOS system heats tobacco but does not burn it.
    • This significantly reduces the production of harmful and potentially harmful chemicals.
    • Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals.

    “Through the modified risk tobacco product application process, the FDA aims to ensure that information directed at consumers about reduced risk or reduced exposure from using a tobacco product is supported by scientific evidence and understandable,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products.

    “Data submitted by the company shows that marketing these particular products with the authorized information could help addicted adult smokers transition away from combusted cigarettes and reduce their exposure to harmful chemicals, but only if they completely switch.”

    In its announcement, the FDA stressed that is marketing authorization doesn’t mean the reviewed products are safe or “FDA approved.”

    The FDA’s marketing order requires PMP to conduct post-market surveillance and studies to determine the impact of these orders on consumer perception, behavior and health, and to enable the FDA to review the accuracy of the determinations upon which the orders were based.

    These post-market requirements include a rigorous toxicity study using computer models to help predict potential adverse effects in users. The orders also require the company to monitor youth awareness and use of the products to help ensure that the marketing of the MRTPs does not have unintended consequences for youth use.

    “The FDA’s decision is a historic public health milestone,” said Andre Calantzopoulos, CEO of Philip Morris International. “Many of the tens of millions of American men and women who smoke today will quit—but many won’t. Today’s decision makes it possible to inform these adults that switching completely to IQOS is a better choice than continuing to smoke. FDA determined that scientific studies show that switching completely from conventional cigarettes to IQOS reduces exposure to harmful or potentially harmful chemicals.”

    “The FDA’s decision provides an important example of how governments and public health organizations can regulate smoke-free alternatives to differentiate them from cigarettes in order to promote the public health.”

    “We’re delighted that the FDA authorized IQOS to be marketed as a modified-risk tobacco product,” said Billy Gifford, CEO of Philip Morris USA’s parent company, Altria Group, which will be marketing the product in the U.S. “This authorization gives PM USA an opportunity to communicate additional benefits of switching to IQOS and this decision is an important step for adult smokers.”

    In a note to investors, Morgan Stanley described the FDA’s order as a positive development because it provides greater flexibility for IQOS to be marketed as relatively less harmful than cigarettes.

    “The inability to make relative lower harm claims is a constraint to broader IQOS adoption in the U.S.,” wrote Morgan Stanley analyst Pamela Kaufman.

    “Over time, PM can continue to submit additional information towards a full MRTP approval. The modified exposure designation combined with pending PMTA approval for IQOS 3 should accelerate MO’s [Altria’s] U.S. expansion strategy for IQOS. The FDA’s recognition of IQOS’s benefits relative to cigarettes may also enhance IQOS’ perception with international health agencies, helping its growth prospects,” Kaufman said.

    Anti-smoking activists were less enthusiastic. In a joint statement, the Campaign for Tobacco-Free Kids, the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association and the Truth Initiative, said the FDA marketing order would put consumers at risk.

    “With today’s action, the FDA has created a real danger that kids and adults will falsely believe IQOS has been proven to present a lower health risk and that kids will be exposed to marketing that portrays IQOS, a highly addictive tobacco product, as an appealing, cool alternative to cigarettes, in much the same way as e-cigarettes,” the anti-tobacco groups wrote in their statement.

    IQOS is the first tobacco product to receive exposure modification orders and the second to be authorized as a modified risk tobacco product. In October 2019, the FDA authorized Swedish Match U.S. division’s amended MRTP applications for eight varieties of General Snus, giving the company the right to market the product as a less harmful alternative to cigarettes.

  • Court Strikes Warnings for Pipes and Cigars

    Court Strikes Warnings for Pipes and Cigars

    Photo: Tobacco Reporter archive

    A U.S. federal appeals court has ruled that the U.S. Food & Drug Administration (FDA) cannot require warning labels for cigar or pipe tobacco products, reports Halfwheel.

    In a unanimous ruling, the U.S. Court of Appeals for the District of Columbia Circuit decided in favor of the plaintiffs in a case brought by the Cigar Association of America and others against the FDA.

    Judge Gregory Katsas wrote that the FDA failed to produce evidence that the warning labels would reduce the number of smokers.

    “The Deeming Rule does not consider the impact of health warnings on smoking cessation and adoption rates,” he said. “In fact, the rule scrupulously avoids the issue, and the FDA rarely even contenders otherwise. Instead, the FDA candidly acknowledged that ‘[r]eliable evidence on the impacts of warning labels … on users of cigars [and] pipe tobacco … does not, to our knowledge, exist.’”

    Earlier this year, a U.S. District Court ruled that FDA could not require warning labels on premium cigars. The most recent decision throws out the district court ruling and modifies it to include all cigars and pipe tobacco products.

  • Trump Officially Withdraws From WHO

    Trump Officially Withdraws From WHO

    It’s official. The Trump administration has withdrawn the United States from the World Health Organization. The news comes as the Covid-19 pandemic continues to grip the globe and infections spike across the U.S.

    Withdraw requires a years notice, so it will not go into effect until July 6, 2021. This raises the possibility the action could be overturned. 

    Congress received formal notification of the decision on Tuesday, more than a month after President Donald Trump announced his intention to end the U.S. relationship with the WHO and blasted the multilateral institution as a tool of China, according to an article in USA Today.

    Democrats said the decision was irresponsible and ill-considered, noting it comes as the pandemic is raging and international cooperation is vital to confront the crisis.

    “This won’t protect American lives or interests – it leaves Americans sick & America alone,” Sen. Bob Menendez, the top Democrat on the Senate Foreign Affairs Committee, tweeted after receiving the White House’s notification. “To call Trump’s response to Covid chaotic & incoherent doesn’t do it justice.”

    The formal withdrawal comes as the United States nears 3 million reported coronavirus cases and more than 130,000 deaths, according to Johns Hopkins University data. Globally, there have been 11.6 million cases and almost 540,000 deaths, according to the story.

    Trump and his advisers have blasted the WHO for failing to press China to be more transparent about the scope and severity of the Covid-19 outbreak, which began in Wuhan, China.

    Trump has said that China “has total control” over the WHO, even though it contributes far less than the US to the health organization’s budget. The U.S. has contributed approximately $450 million dollars a year, according to the story.

    Amanda Glassman, a public health expert and executive vice president of the Center for Global Development think tank, noted the world doesn’t just face today’s threat of Covid-19 but also the threat of future pandemics, which are more likely because of increased zoonotic transmission.

  • BAT Asks Malaysians to Tackle Black Market

    BAT Asks Malaysians to Tackle Black Market

    Photo: BAT

    British American Tobacco (BAT) has launched a campaign to draw attention to the problem of illicit cigarette sales in Malaysia, reports The New Straits Times.

    The company is inviting Malaysians to participate in a survey and to share their views on a dedicated Facebook page.

    Worldwide, Malaysia is now the country most affected by illegal cigarettes, according to Oxford Economics. Nielsen figures suggest that black market accounted for 62 percent of all domestic tobacco sales in 2019.

    Illicit cigarette sales cause the government to miss out on an estimated MYR5.3 billion ($1.24 billion) in excise tax revenues each year.

    Many Malaysians also believe that youth smoking is linked to cheap illegal cigarettes.

    BAT Malaysia managing director Jonathan Reed said the tobacco black market negatively impacts legal businesses and the lives of all Malaysians.

    “We applaud the hard work done by law enforcement agencies recently and we hope that these efforts continue to pressure the syndicates operating in this black market,” he said in a statement on July 6.

    “However, enforcement alone is not enough to address this issue.”

    BAT hopes the surveys will spark a national discussion on how illicit cigarette sales can be stopped.