Category: News This Week

  • ‘Menthol Ban Presents Opportunity to Switch’

    ‘Menthol Ban Presents Opportunity to Switch’

    Photo: VPZ

    U.K. vapor industry representatives are hoping that the EU ban on menthol cigarettes that comes into force today will encourage more smokers to transition to less-hazardous vapor products.

    The ban of menthol cigarettes comes from the EU Tobacco Products Directive (TPD), banning all cigarettes and rolling tobacco with “characterizing flavor” other than traditional tobacco.

    The ban originates from a range of tobacco control measures approved by the European Parliament in 2013, with revisions including mandating the banning of menthol cigarettes by 2022.

    In the U.K. there are an estimated 1.3 million menthol cigarette smokers.

    Research by the U.K. Vaping Industry Association, the largest trade domestic body representing the sector, shows that menthol vapor products sold by its retail and wholesale members represent an average of 16.5 percent of all sales and nearly double this number, at 30.75 percent, for manufacturers producing such products.

    The data suggests that menthol cigarettes are used by up to 12.4 percent of smokers in England, while global sales in 2018 exceeded $80bn. Currently, some 14.4 percent of the adult population in England smoke and there are some 7m smokers across the UK.

    Doug Mutter

    “I think in normal circumstances this move could have had the potential to significantly reduce smoking rates in the U.K.,” said Doug Mutter, director of manufacturing and compliance at VPZ, a leading vapor company in the U.K.

    “However, with vaping stores closed and stop smoking services shut, it remains to be seen how we can engage menthol smokers and encourage them to make the switch.

    “This is the biggest change to tobacco law since plain packing was introduced.

    “For the vaping industry it presents an opportunity to help smokers finally make the switch, and whilst that will be harder with stores still closed, we believe that vaping presents the best opportunity to stamp out cigarettes for good.

    “VPZ has built a digital platform for advice and guidance on smokers switching to vaping for the first time as well as how to pick the best products to help them quit.

    “We are expecting a growth in the number of new vapers in the U.K, so it was important to us to use our expert staff to help create a guide for menthol smokers looking to quit through vaping.

    “From which device best suits your needs to what strength of nicotine is required, we have tried to cover as many questions as possible. We have even put together some starter kits covering all categories to help with any first-time decision as we appreciate the first step can be daunting, without the opportunity to visit one of our stores.

    “It will be difficult for many people just now because vape stores are closed and the temptation to go back to traditional cigarettes is everywhere.  We are talking about over one million people in the UK will now not have their menthol cigarettes available and we hope that they are beginning to research which stop smoking products can best help them quit.

    “Our message to smokers across the country is that the best time to quit cigarettes is now.”

  • Pyxus Reportedly in Talks About Bankruptcy

    Pyxus Reportedly in Talks About Bankruptcy

    Photo: Pyxus International

    Pyxus International has reportedly begun talks with creditors regarding a possible bankruptcy filing, according to an article in the Wall Street Journal.

    The filing is potentially related to declining cigarette consumption and the Covid-19 pandemic following the company’s struggle to make headway in the cannabis and vapor sectors.

  • Imperial Brands Disappointed With Six-Month Results

    Imperial Brands Disappointed With Six-Month Results

    Photo: Imperial Brands

    Imperial Brands’ adjusted tobacco and next-generation product (NGP) revenue for the six months ending March 31, 2020, was down 1.7 percent from the same period last year.

    The company’s total adjusted operating profit also fell 9.3 percent. On a reported basis, revenue rose 2 percent while total operating profit fell 19.6 percent.

    “While we delivered against our revised expectations, we are disappointed with these results, and we remain fully focused on all opportunities to strengthen performance,” said Dominic Brisby and Joerg Biebernick, joint interim chief executives for Imperial Brands.

    “We would like to thank our employees for their hard work and commitment in these challenging times. Their support has been outstanding, and we continue to prioritize their health, safety and well-being.

    “Our enhanced focus on tobacco has driven stronger in-market execution and an improved share performance, with gains in most of our priority markets. We have reduced our NGP spend following the poor returns on investment last year, and this, together with recent weaknesses in the vapor category, has resulted in lower NGP revenue.

    “Overall, Covid-19 has so far had only a small impact on trading, but we expect this to be more pronounced in the second half due to continued pressures on our duty-free and travel retail business, changes in consumption patterns including downtrading and a reversal of some first-half inventory build.”

  • Forest: Banning Menthol Will Not Stop Children Smoking

    Forest: Banning Menthol Will Not Stop Children Smoking

    Simon Clark | Photo: Taco Tuinstra

    The EU ban on the sale of menthol cigarettes will needlessly restrict adult smokers’ choices while doing little to prevent underage smoking, according to smokers’ rights group Forest.

    Responding to claims by the anti-smoking group Action on Smoking and Health that the ban on “child-friendly” menthol cigarettes is long overdue, Forest said there is no evidence that banning menthol cigarettes will stop children smoking.

    “The ban on menthol cigarettes is a gross restriction on consumer choice that will do nothing to stop children smoking, said Simon Clark, director of Forest.

    “Evidence from Canada, where menthol cigarettes were first banned in 2015, suggests that the ban had no overall impact on youth smoking rates because younger smokers simply switched to non-menthol cigarettes,” said Clark.

    “Many adults have smoked menthol-flavored cigarettes for decades,” he added. “This week that small pleasure will be taken away from them and the only people who will benefit are the criminals who supply the black market with illegal and counterfeit goods.”

    Menthol cigarettes will be banned in the European Union starting tomorrow.

    The ban will also outlaw flavored cigarettes, skinny cigarettes and flavored rolling tobacco. The measure is part of the EU Tobacco Products Directive and aims to stop younger people from smoking as well as curb smoking rates among current smokers.

  • PMI Investigated for Tobacco Heating Patent Infringement

    PMI Investigated for Tobacco Heating Patent Infringement

    vuse_small
    Photo: R.J. Reynolds Vapor Co.

    The U.S. International Trade Commission (ITC) has opened a probe into vapor products imported by cigarette giant Philip Morris USA (PM) after R.J. Reynolds complained that PM’s tobacco-heating system infringes Reynolds’ patents, according to a report by Law360.

    The investigation will determine whether the IQOS tobacco vaporizers marketed by Philip Morris and parent company Altria use tobacco-heating systems and sticks that violate patents for R.J. Reynolds’ Vuse vaping system. R.J. Reynolds seeks cease-and-desist orders barring imports of the allegedly infringing products.

    The patents describe a device that heats tobacco held in a removable cartridge to 350 degrees when vapors containing nicotine are released without producing smoke, according to R.J. Reynolds’ April 9 complaint to the ITC.

    R.J. Reynolds, which is owned by British American Tobacco, said Philip Morris has sold the alleged copycat IQOS system in the U.S. since October 2019 and has imported the product from manufacturers in Italy, Switzerland and Malaysia for years to use in clinical testing.

    “We believe the allegations are without merit, and we are fully prepared to defend ourselves,” Philip Morris spokesman Corey Henry told Law360 in a statement Wednesday, noting the company has spent $7 billion developing its smoke-free tobacco products over the past two decades.

    R.J. Reynolds filed a suit accusing Altria and Phillip Morris of six counts of trademark infringement in Virginia federal court the same day R.J. Reynolds filed its ITC petition. In that case, the company seeks treble damages and court declarations that Altria and Philip Morris have infringed its intellectual property.

    Photo: PMI
  • Altria Requests Marketing Authorization for Nicotine Pouches

    Altria Requests Marketing Authorization for Nicotine Pouches

    Image by Jana Schneider from Pixabay

    Altria Client Services submitted premarket tobacco product applications to the U.S. Food and Drug Administration (FDA) for 35 On! products on behalf of Helix Innovations LLC, an Altria joint venture responsible for manufacturing and selling On! nicotine pouches globally.

    On! products are offered in seven flavors and five nicotine levels for adult tobacco consumers seeking alternatives to traditional tobacco products.

    “On! nicotine pouches are a key part of our vision to responsibly lead the transition of adult smokers to a noncombustible future,” said Paige Magness, senior vice president of regulatory affairs for Altria Client Services. “We believe the supporting science is strong and are committed to working with the agency on these important product submissions.”

  • Dutch Considering Tougher Stance on Vaping

    Dutch Considering Tougher Stance on Vaping

    Health officials in the Netherlands are considering a stricter approach to electronic nicotine delivery systems (ENDS). Junior health minister Paul Blokhuis has told MPs he is considering extra legislation to limit the use of e-cigarettes following research which shows they are widely used by teenagers.

    Electronic cigarettes are more dangerous to health than first thought and are seen by teenagers as a first step to smoking real cigarettes, according to a new fact sheet produced by the Trimbos addiction clinic on behalf of the health ministry, according to a story on dutchnews.nl.

    Fifteen years after they first came on the market, some 3.1 percent of Dutch adults now use an e-cigarette on occasion, Trimbos said. Their use is largely seen as a way to stop smoking cigarettes, although almost three quarters of users still smoke in the traditional way, according to the story.

    However, the organisation also stated that the health of the Dutch would be best served if the use of e-cigarettes is restricted to hardened smokers who cannot stop using other tried methods. “The new Trimbos insights raise questions about introducing additional legislation,” Blokhuis said in his briefing to MPs. The minister will now study the research in more detail and, according to the Telegraaf, a ban on flavourings is one of the options being considered.

  • Imperial Tobacco Offers its Petone Site for Sale

    Imperial Tobacco Offers its Petone Site for Sale

    Photo: Tobacco Reporter archive

    Imperial Tobacco has put up for sale the site of its Petone factory in Lower Hutt, New Zealand, reports Stuff.

    In February, the company confirmed the factory would go through a staged shutdown and the plant would be decommissioned by the end of 2020 with the loss of 122 jobs.

    Located in a popular suburb, the site measures 2.25-hectare and includes a warehouse along with manufacturing and office buildings

    The site had been an important part of the Petone economy for around 90 years. W.D and H.O Wills Limited started manufacturing cigarettes in suburb around 1930, after establishing their business in Wellington in 1919 and needing to expand.

     Imperial Tobacco had owned the site since the late-1990s.

    The company has not yet confirmed a date for the end of production.

     

     

     

  • Pakistan Court Cancels Track-And-Trace Contract

    Pakistan Court Cancels Track-And-Trace Contract

    Photo: Taco Tuinstra

    A court in Pakistan canceled a multi-million dollar track-and-trace contract for tobacco products after complaints that the company awarded the contract was given undue preferential treatment.

    The National Radio and Telecommunication Corp. (NRTC) was awarded the contract after submitting a very low bid. The bid was apparently in error, and the NRTC was allowed to correct the bid before the contract was awarded. According to the rules, the contract should have been awarded to the next lowest bidder following the error.

    “If modifications in financial bids are allowed after the results of the bidding were made known … it would afford a pretext for unscrupulous bidders to prey on the public,” the judge stated in his decision.

  • Trade Commission to Probe Altria and Philip Morris

    Trade Commission to Probe Altria and Philip Morris

    The U.S. International Trade Commission (ITC) will investigate Altria and Philip Morris after a complaint was filed by R.J. Reynolds. The ITC will look into certain tobacco heating elements and components.

    The ITC has not made a decision on the case but has said it will make its “final determination … at the earliest practicable time.”