Category: News This Week

  • Malawi Tobacco Farmers Facing 91% Rejection Rate

    Malawi Tobacco Farmers Facing 91% Rejection Rate

    Malawi tobacco farmers are raising renewed concerns over extremely high rejection rates for auction burley tobacco during the 2026 marketing season, with some growers reporting rejection levels as high as 91% at the Lilongwe Auction Floors. Farmers claim the system unfairly favors contract tobacco, which moves more smoothly through sales channels, while independent growers face repeated rejections, mounting transport and accommodation costs, and shrinking profitability.

    Parliamentary Agriculture Committee Chairperson Antony Kamoto acknowledged the challenges and called for contract reforms and greater competition among tobacco buyers, while Tobacco Commission Chairperson Reverend Daniel Gunya said authorities are engaging stakeholders to address the issue. Despite the tensions, Malawi has sold about 19.3 million kg of tobacco worth approximately $40.8 million in the first four weeks of the season, with average prices at $2.12 per kg.

  • A New Direction for ENDS

    A New Direction for ENDS

    ~ What FDA approvals mean for ENDS flavoured tobacco products ~

    The FDA’s decision to authorise flavoured Electronic Nicotine Delivery System (ENDS) products marks one of the most significant regulatory developments the sector has seen in recent years. While tobacco and menthol authorisations had already signalled a gradual shift in regulatory thinking, the approval of mango and blueberry flavoured products suggests the agency is increasingly willing to assess reduced-risk nicotine products through a broader public health lens. Here, Chris Allen, CEO of nicotine testing and regulatory consultancy Broughton, explains the significance of this decision and why it reflects a growing emphasis on evidence-based harm reduction, behavioural science and product safeguards.

    Central to the FDA’s assessment process is its “Appropriate for the Protection of Public Health” (APPH) standard, which requires regulators to weigh the potential benefits for adult smokers against the possible risks associated with youth uptake. Emerging evidence suggests that flavoured alternatives may help some adult smokers move away from combustible cigarettes, particularly those who do not successfully transition using tobacco-flavoured products alone.

    One longitudinal study published via the National Library of Medicine found that adult users of sweet or fruit-flavoured nicotine vaping products were more likely to transition away from cigarette smoking than those using tobacco-flavoured alternatives.

    In draft guidance published in early 2026, the FDA acknowledged that non-tobacco flavoured ENDS products may, “in certain circumstances”, support adult smokers in switching away from combustible cigarettes or increasing quit attempts. However, ENDS products continue to face heightened scrutiny due to historic concerns surrounding youth access, abuse liability and the toxicological considerations associated with inhaled products.

    Importantly, the latest authorisations should not be interpreted as a relaxation of regulatory expectations. If anything, they reinforce the extent to which manufacturers are now expected to integrate public health and compliance considerations into product development at an early stage. For ENDS products in particular, this means fully characterising products from a toxicological perspective, understanding behavioural risk factors and demonstrating that appropriate controls are built into the product itself.

    The FDA’s continued scrutiny of inhaled nicotine products – particularly flavoured variants – means manufacturers must increasingly show not only that products can support adult smokers in moving away from combustible cigarettes, but also that meaningful steps have been taken to restrict youth access and minimise unintended use. This will likely place greater emphasis on access-control technologies and submission-ready behavioural data as regulators continue to refine their expectations around next-generation nicotine products. For developers, regulatory strategy can no longer be treated as a final-stage compliance exercise; they must be incorporated into product design from the outset.

    The latest authorisations may also have implications beyond the US market. While regulatory approaches continue to vary globally, the FDA’s decision reflects a broader shift towards more nuanced, evidence-led discussions around harm reduction and the role alternative nicotine products may play in supporting smoke-free ambitions. Increasingly, the debate is moving away from whether reduced-risk products should exist at all, and towards how they can be appropriately regulated to maximise public health benefits while minimising unintended consequences.

    Ultimately, the significance of these authorisations extends far beyond the approval of two flavoured products. They signal that regulators are willing to consider the full public health picture – including adult switching potential, behavioural evidence and technological safeguards – when assessing alternative nicotine products. For manufacturers that raises the bar for scientific substantiation, product stewardship and regulatory preparedness. However, it also demonstrates that innovation supported by robust evidence and responsible product design can still find a pathway through even the most rigorous regulatory environments.

    As the regulatory environment for nicotine products continues to evolve, manufacturers face growing pressure to navigate increasingly complex submission requirements across multiple international markets. Broughton supports businesses through the product lifecycle, combining scientific expertise with regulatory insight across ENDS, nicotine pouches and other alternative nicotine products. To find out how Broughton can help support your submission, visit its website.

  • PMI Announces Andolina as Next CFO

    PMI Announces Andolina as Next CFO

    Philip Morris International appointed Massimo Andolina as its new Group Chief Financial Officer, effective August 1, succeeding Emmanuel Babeau, who will remain with the company as Strategic Advisor to CEO Jacek Olczak until March 2027 to support the transition. Andolina, currently president of PMI’s Europe Region, has been credited with driving strong smoke-free growth and financial performance across the company’s largest region, while previously leading global operations and transformation initiatives that improved efficiency and supply-chain resilience.

    Olczak described Andolina as a respected leader with deep company knowledge and a strong record in innovation and growth. PMI also praised Babeau’s six-year tenure, during which the company strengthened its smoke-free business, completed the acquisition of Swedish Match in 2022, and increased smoke-free products’ share of net revenues to 43% in Q1 2026.

  • Scandinavian Reports Steady Progress in Seasonally Low Quarter

    Scandinavian Reports Steady Progress in Seasonally Low Quarter

    Scandinavian Tobacco Group A/S reported a steady start to 2026 with its Q1 interim results, marking the first quarter under its new five-year strategy, Focus2030. Management emphasized early execution on priorities, including stabilizing earnings in machine-rolled cigars and smoking tobacco, revitalizing the handmade cigar segment, and expanding nicotine pouches. CEO Niels Frederiksen highlighted that while the quarter is seasonally weak, the company is laying the groundwork for longer-term growth and sustained shareholder value.

    Net sales for the quarter were DKK 1.859 billion ($297 million), down 6% year-on-year, though the decline narrowed to -0.6% in constant currencies, with timing effects and a -5.2% foreign exchange impact weighing on reported figures. Performance was mixed across categories: machine-rolled cigars showed stabilization supported by power brands in Europe, handmade cigars delivered 8% organic growth, and the XQS nicotine pouch brand continued strong momentum with more than 13% market share in Sweden. Profitability remained broadly stable, with EBITDA before special items rising slightly to 17.2% margin and EBIT margin holding at 10.4%, despite a small negative impact from amortization changes.

    Cash generation was solid for the first quarter, with free cash flow before acquisitions of DKK 158 million ($25.3 million), broadly in line with last year despite working capital timing differences. Adjusted earnings per share declined to DKK 1.1 ($0.176), while return on invested capital fell to 7.8% and leverage increased to 3.0x net debt/EBITDA. The company maintained its full-year 2026 guidance, expecting constant-currency net sales growth of -2% to +2%, EBIT margin of 13.0%–14.5%, and free cash flow of DKK 950–1,200 million ($152–192 million), signaling confidence in its ongoing strategic transition.

  • South Carolina Approves Tax on HNB

    South Carolina Approves Tax on HNB

    South Carolina Governor Henry McMaster approved House Bill 4303, which establishes an excise tax of 2.5 cents per pack of 20 on heated tobacco sticks.  The bill passed the House on May 2nd before receiving the Senate’s approval on May 13th, and is scheduled to take effect on October 1st.

  • Universal Ups Dividend, Sets Annual Meeting for Aug. 4

    Universal Ups Dividend, Sets Annual Meeting for Aug. 4

    Universal Corporation announced a quarterly dividend increase to $0.83 per share, payable on August 3, to shareholders on record as of July 13. The increase raises the annualized dividend to $3.32 per share and implies a dividend yield of approximately 6.1% based on the company’s May 18 closing share price of $54.46. The move extends Universal’s track record of annual dividend growth to 56 consecutive years, underscoring its focus on shareholder returns and stable cash generation.

    Chairman, president, and CEO Preston D. Wigner said the dividend increase reflects the strength of the company’s business strategy, operational consistency, and long-term customer relationships across its global agriproducts platform. Management emphasized that predictable dividend growth remains a core part of Universal’s shareholder value proposition, supported by diversified sourcing, integrated processing capabilities, and a broad international supply chain network spanning more than 30 countries.

    The company also confirmed that its 2026 Annual Meeting of Shareholders will take place on August 4 at its headquarters, with a record date of June 4.

  • JT Receives Dividend from Subsidiary

    JT Receives Dividend from Subsidiary

    Japan Tobacco Inc. announced that its consolidated subsidiary, JT International Holding B.V., approved a surplus dividend distribution of JPY 74.4 billion ($470 million) at a board meeting held on May 18, with payment expected on May 20. The dividend will be recorded as non-operating income in JT’s standalone financial statements for fiscal 2026; however, because the payment originates from a consolidated subsidiary, the company stated that it will not have a material impact on JT’s consolidated financial results for the year.

  • Durbin Urges RFK Jr. to Reject Flavored-Vape Progress

    Durbin Urges RFK Jr. to Reject Flavored-Vape Progress

    Illinois Senator Dick Durbin urged U.S. Health Secretary Robert F. Kennedy Jr. to reject recent efforts by the U.S. Food and Drug Administration to ease restrictions on flavored vaping and nicotine pouch products, arguing the policy shift benefits major tobacco companies at the expense of youth health. In a May 20 letter, Durbin criticized the FDA’s recent authorization of certain fruit-flavored vape products and proposals to allow some nicotine products onto the market before full scientific review, calling the changes “short-sighted” and influenced by industry lobbying and political donations.

  • BATB Sales Choked by Taxes, Illicits

    BATB Sales Choked by Taxes, Illicits

    British American Tobacco Bangladesh reported a sharp downturn in first-quarter FY2025-26 performance as higher tobacco taxes, consumer downtrading, and rising competition from illicit cigarettes weighed heavily on sales. Domestic cigarette volumes fell 14% year-on-year, dragging gross revenue down 10.7% and net revenue down 21% as the effective tax burden climbed to 84.1%.

    Industry estimates suggest illicit cigarettes now capture up to 18% of the market, intensifying pressure on compliant manufacturers. While gross margin improved to 56% on lower cost of sales, operating expenses surged more than 40%, and operating cash outflow widened amid rising inventories and higher short-term borrowing. Non-core revenue streams offered little support, with cigarette exports remaining at zero for a third straight quarter and leaf export volumes falling sharply.

  • FDA Targets ‘Disguised’ Nicotine Products in Retail Crackdown

    FDA Targets ‘Disguised’ Nicotine Products in Retail Crackdown

    The U.S. Food and Drug Administration issued warning letters to eight retailers for selling unauthorized nicotine pouches and dissolvable tobacco products designed to resemble candy, breath strips, and cough drops, raising concerns that the items could both appeal to children and be accidentally ingested by young kids. According to the agency, the products’ labeling, advertising, and design mimic everyday consumer goods, “disguising” them and making it easier for youth to conceal their use from adults.

    Acting Center for Tobacco Products Director Bret Koplow said no tobacco product should look like candy and described the practice as a tactic to mask the products’ true nature. The retailers were cited for violating the Federal Food, Drug, and Cosmetic Act by selling products without FDA authorization and were ordered to correct the violations or face potential penalties, including seizures, injunctions, and/or fines. The action follows recent FDA guidance outlining enforcement priorities for unauthorized electronic nicotine delivery systems and nicotine pouch products, part of a broader push to remove youth-appealing products from the market.


    The agency noted it has now issued more than 800 warning letters to manufacturers and distributors and over 1,000 to retailers over unauthorized tobacco sales, and reminded retailers to consult its updated list of legally marketed products and use available compliance materials.