Category: News This Week

Vapor Clouds Don’t Spread virus

There is insufficient evidence to support the claim that Covid-19 can be spread through vape clouds, according to Neal Benowitz, a University of California San Francisco professor of medicine.
“It is my understanding that exhaled e-cigarette vapor consists of very small particles of water, propylene glycol and glycerin and flavor chemicals, not droplets of saliva,” Benowitz said.
“The vaping aerosol evaporates very quickly while particles that are emitted when coughing or sneezing are large particles that persist in the air for a relatively long period of time.
“Thus, I would not think that vapers present any risk of spreading Covid-19 unless they are coughing when they exhale the vapor.”

Benowitz’s remarks follow comments by Tom McLean, a Scottish microbiologist, who claimed that “blowing vapor out is as good as someone spitting in your face.”
“If anyone has the coronavirus and are vaping, they’d be spreading it to a lot of people at the same time,” McLean said.
Doctors are considering vaping as a possible factor in the large rate of those hospitalized for severe Covid-19 symptoms.
March 24, 2020
USTC Closes Timberlake
The manufacturing division of U.S. Tobacco Cooperative (USTC), U.S. FlueCured Tobacco Growers of Timberlake, North Carolina, USA, is temporarily closing its manufacturing operations due to the coronavirus.
The Timberlake manufacturing facility will be closed from March 23 until April 6 to help combat the spread of the virus. Plans are to resume manufacturing on April 6 but could be amended based on the pandemic situation.
U.S. Flue-Cured Tobacco Growers will continue to ship orders from inventory to customers and to internal distributors and warehouses. Over the past few weeks, inventory levels have been increased to allow for this situation.
“This is a challenging time for everyone worldwide and we remain focused on protecting our employees, customers and vendors while we work our way through this pandemic,” said Oscar J. House, CEO and president of USTC.
March 24, 2020
Restrictions Threaten Zimbabwe’s Season
Restrictions on public gatherings to prevent the spread of coronavirus infections are threatening to disrupt the Zimbabwean tobacco selling season, reports The Zimbabwe Daily Mail.
The tobacco selling season attracts thousands of farmers to Harare and selling points outside the capital to trade in Zimbabwe’s prime foreign currency earner. Apart from farmers, thousands of traders and other small businesses flock to tobacco auction floors in an annual ritual.
On Tuesday, President Emmerson Mnangagwa announced measures to contain a possible outbreak, which included banning of gatherings of more than 100 people.
March 20, 2020
Altria CEO contracts coronavirus
Altria CEO Howard Willard has tested positive for the coronavirus, according to Reuters.

Willard is taking temporary medical leave, and William Gifford Jr., Altria’s chief financial officer, is taking over in his absence.

“Howard has been out of the office for several days, and we have notified those who were in close contact with Howard and asked them to self-quarantine for 14 days,” a staff memo said.
March 20, 2020
Nerudia Recognized as Leading Innovator

Nerudia, Imperial Brands’ research and development hub for next-generation products, (NGP) features among the European Patent Office’s (EPO) top 100 applicants in 2019. Nerudia works alongside Imperial Brand’s group science team to continually build knowledge and develop nicotine products with a lower risk profile than traditional combustible tobacco.
“I am extremely proud of Nerudia’s ranking. Intellectual property [IP] continues to be a major focus as we enhance our portfolio for smokers who are looking to convert to potentially less harmful products.” said David Newns, co-founder of Nerudia and group innovation and science director at Imperial Brands.
“Excellence in innovation will be key to unlocking the potential of NGP to Imperial, so we’re very proud to be recognized and see this ranking as a lead indicator of our innovation pipeline,” he said.
Imperial Brands’ NGP portfolio includes Blu vapor products, Pulze heated tobacco and ZoneX tobacco-free oral nicotine.
Nerudia filed 335 patents with the EPO last year, placing it 62nd on a ranking headed by global electronics giants Huawei, Samsung and LG.
Of all U.K. businesses, Nerudia made the second largest number of patent applications with only Rolls Royce filing more.
“We have consciously created an environment where our employees feel empowered to question how things have always been done and to consider a new way, a better way, to do things,” said Chris Lord, co-founder of Nerudia, and group innovation director at Imperial Brands.
“IP plays a huge part in ensuring that Imperial remains a leader in NGP, and keep us at the forefront of delivering products that offer a better future to adult smokers and in doing so reducing the risk profile that nicotine containing products have,” he said.
Nerudia ranked eighth for number of patent applications made to the UK Intellectual Property Office in 2018, just one position below the renowned technology innovation business Dyson.
March 20, 2020
JTI Ranked as Top Patent Applicant
Japan Tobacco International (JTI) was one of the top 100 applicants at the European Patent Office (EPO), according to the EPO’s Patent Index 2019.
“Our position as one of the top applicants at the EPO demonstrates our commitment to innovation and is the result of extensive in-house research and development,” said Stephane Hedarchet, intellectual property vice president for JTI. “We are constantly developing new technologies and products, notably for our Ploom and Logic vaping products, that better serve the needs of our consumers.”
Globally, the JT Group has 4,200 granted patents and 2,800 pending patent applications. The group filed 357 priority applications in 2019.
Industrywide, patent applications for reduced-risk products more than doubled last year.
March 19, 2020
BAT Unaffected by Virus Outbreak
British American Tobacco (BAT) has seen no material impact from the outbreak of Covid-19, the company said during a webcast on March 18.
Consumers continue to purchase tobacco products, even in the hardest hit areas. “We don’t see any change in patterns of consumption of cigarettes because of Covid-19,” said Jack Bowles, chief executive officer of BAT. “It is a daily purchase, so consumers continue to go to shop, even in Italy and France where tobacco shops are still open.”
BAT faced some manufacturing disruptions in February in China due to the virus outbreak, but production resumed in March.
The company will not revise its forecasts of a 4 percent decline in 2020 cigarette and tobacco-heating product industry sales and a 5 percent decline in the United States, according to Reuters. BAT also maintains its forecast of 3 percent to 5 percent for constant currency adjusted revenue growth as well as its forecast of high single digits for earnings per share growth.
March 19, 2020
PMI Earnings Estimates Lowered Due to ‘Headwinds’
Morgan Stanley has lowered its 2020 earnings per share (EPS) estimate for Philip Morris International (PMI) to $5.16 from $5.62 to reflect lower oil prices, unfavorable currency exchange rate movements and potential demand disruption due to the coronavirus.
According to the investment bank, the spread of the coronavirus through Europe, along with the associated travel restrictions, may reduce demand for both cigarettes and IQOS in key growth markets such as Italy.
The significant decline in oil prices, meanwhile, may impact demand in oil-exporting countries such as Russia, which could lead to lower cigarette consumption, impact the pace of IQOS adoption and drive downtrading in cigarettes, Morgan Stanley analysts wrote in a note to investors.
In addition, the U.S. dollar has strengthened considerably against the currencies of key PMI markets such as Indonesia, Russia and Ukraine.
Despite its EPS expectations adjustment, Morgan Stanley continues to believe that PMI remains well-positioned relative to tobacco and staples peers, supported by its growing mix shift to IQOS, significant operating leverage and strong pricing power, among other factors.
March 18, 2020
Blueprint for Tracking
The International Tax Stamp Association (ITSA) has created a blueprint for a global tobacco control system to help prevent fraudulent trade.
“Its aim is to contribute to the work being carried out on the implementation of a tobacco T&T [track-and-trace] system compliant with the World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) and its Protocol to Eliminate Illicit Trade in Tobacco Products,” the ITSA wrote in a press release.
The publication of this blueprint comes before the second meeting in Brazil in April of the FCTC working group on tracking and tracing systems.
The blueprint suggests a series of recommendations on operational aspects of a track-and-trace system and assignments of responsibility, including establishing a national and/or regional database to register stakeholders (manufacturers, distributors and wholesalers) and products, and affixing a tax stamp issued by the competent authority of the destination market on every pack of cigarettes. Many tax stamps contain a combination of aspects that make them difficult to counterfeit. The blueprint also aims to fill gaps in the EU Tobacco Products Directive (TPD), according to ITSA.
“We have seen examples around the world where T&T system tenders have been awarded to companies with close ties to the industry,” said Juan Carlos Yanez, chairman of ITSA. “This contravenes the spirit of the Protocol and could result in the implementation of systems that are not safe and secure. If this happens, it will make it more difficult to cut crime, improve health outcomes and enable revenue authorities to recoup taxes owed to them.”
March 18, 2020
Coming to America
The U.S. Food and Drug Administration has issued a final rule to require new health warnings on cigarette packages and in cigarette advertisements. The warnings feature textual statements with photo-realistic color images depicting some of the lesser-known, but serious health risks of cigarette smoking, including impact to fetal growth, cardiac disease, diabetes and more.
“The 11 finalized cigarette health warnings represent the most significant change to cigarette labels in more than 35 years and will considerably increase public awareness of lesser-known, but serious negative health consequences of cigarette smoking,” said Mitch Zeller, director of FDA’s Center for Tobacco Products.
“Research shows that the current warnings on cigarettes, which have not changed since 1984, have become virtually invisible to both smokers and nonsmokers, in part because of their small size, location and lack of an image.
“Additionally, research shows substantial gaps remain in the public’s knowledge of the harms of cigarette smoking, and smokers have misinformation about cigarettes and their negative health effects.”
Beginning June 18, 2021, these new cigarette health warnings will be required to appear prominently on cigarette packages and in advertisements, occupying the top 50 percent of the area of the front and rear panels of cigarette packages and at least 20 percent of the area at the top of cigarette advertisements.”

March 17, 2020