Category: News This Week

  • Smokers need not apply

    U-Haul International, an American moving equipment and storage rental company, will stop hiring nicotine users. The policy is part of a broader corporate drive to promote a healthy workforce.

    The nicotine-free hiring policy will go into effect Feb. 1 in 21 states where it is lawful to decline hiring individuals who use nicotine products.

    Individuals applying for U-Haul jobs will be questioned about nicotine use during job interviews. In states where testing is allowed, applicants must consent to submit to nicotine screening in the future to be considered.

    The employment of people hired prior to Feb. 1 will not be impacted by the policy.

    “We are deeply invested in the well-being of our team members,” said Jessica Lopez, U-Haul chief of staff. “This policy is a responsible step in fostering a culture of wellness at U-Haul with the goal of helping our team members on their health journey.”

    With more than 30,000 employees across the U.S. and Canada, U-Haul is one of the first major companies to stop hiring nicotine users.

    Alaska Airlines has had a no-nicotine policy since 1985.

  • Mixed reactions

    Shares in British American Tobacco (BAT) and Imperial Brands rose on Friday after the U.S. Food and Drug Administration (FDA) exempted menthol and tobacco from a list of e-cigarette flavors that it has banned under new guidelines.

    “Following a significant period of disruption and uncertainty, this regulatory clarity is a welcome step towards returning the U.S. vapor market to stability,” BAT wrote in a statement.

    The new FDA guidelines would also allow tobacco makers to bring back some of the banned flavors if their marketing applications passed a substantive review by the FDA.

    “In addition to exempting menthol, the FDA guidance is clear that flavored products will return to the market once they have been approved through the premarket tobacco product application (PMTA) process,” said Simon Evans, spokesman for Imperial Brands.

    BAT submitted a marketing application for its Vuse Solo e-cigarette to the FDA in November while Imperial Brands said it would submit its applications for its Blu e-cigarettes before May.

    The Campaign for Tobacco-Free Kids (CTFK), however, said the Trump administration had broken its promise to eliminate the flavored e-cigarettes that are driving youth nicotine addiction.

    “By leaving menthol flavored e-cigarettes widely available and completely exempting liquid flavored products, this policy will not stop the youth e-cigarette epidemic,” said Matthew L. Myers, president of the CTFK.

    By contrast, Michael Siegel, a professor at the Boston University School of Public Health, described the decision to exempt open system products from the ban as a huge victory for public health.

    “By allowing vape shops to continue selling flavored vape liquids, the FDA is preventing hundreds of thousands of ex-smokers from being forced to return to smoking,” he said.

    But Robin Koval, CEO and president of the Truth Initiative, said that the argument that flavored e-cigarettes and vape shops are necessary for smokers to switch from cigarettes ignores the data.

    “The data show that the majority of adult e-cigarette users either never previously used cigarettes or continue to smoke, thereby undermining any potential public health benefit,” she said.

    Vapor industry representatives, meanwhile, expressed concern about the FDA’s determination that makers of the nicotine liquids are manufacturers and thus required to submit PMTAs for their products by the court-ordered deadline of May 12.

    According to Gregory Conley, president of the American Vaping Association, there has been little “chatter” about liquid manufacturers actually filing such applications.

    If they fail to do so by the deadline, many small vapor shops dependent on large nicotine liquid makers could begin closing in mid-May from lack of product from legal sources.

  • BMJ certified

    Specialty paper and packaging manufacturer BMJ has been certified as an authorized economic operator (AEO) by Indonesia’s custom authorities.

    This means customs authorities have classified the company as presenting a low risk, allowing them to carry out inspections of its products quicker and more efficiently.

    AEO is an internationally recognized mark of quality, safety and security; it demonstrates that a company’s supply chain is secure, and that its customs procedures comply with applicable regulations, such as those aimed at preventing product tampering.

    “This is truly a proud achievement for us, as only about 130 companies in Indonesia received the same certification,” said Omar Rahmanadi, CEO of BMJ.

    “We went through a long and thorough process to achieve this certification with the detailed requirements and qualifications,” he added. “Only respectable companies with certain standards and following the AEO procedure will receive the certification.”

     

  • Crackdown announced

    Crackdown announced

    The U.S. Food and Drug Administration (FDA) today issued a policy prioritizing enforcement against certain unauthorized flavored e-cigarette products that appeal to kids, including fruit and mint flavors. Under this policy, companies that do not cease manufacture, distribution and sale of unauthorized flavored cartridge-based e-cigarettes other than tobacco or menthol within 30 days risk FDA enforcement actions.

    “The United States has never seen an epidemic of substance use arise as quickly as our current epidemic of youth use of e-cigarettes. HHS [the Department of Health and Human Services] is taking a comprehensive, aggressive approach to enforcing the law passed by Congress, under which no e-cigarettes are currently on the market legally,” said HHS Secretary Alex Azar.

    “By prioritizing enforcement against the products that are most widely used by children, our action today seeks to strike the right public health balance by maintaining e-cigarettes as a potential off-ramp for adults using combustible tobacco while ensuring these products don’t provide an on-ramp to nicotine addiction for our youth,” he added.

    The final guidance outlining the agency’s enforcement priorities for electronic nicotine delivery systems (ENDS), such as e-cigarettes and e-liquids, comes as the 2019 National Youth Tobacco Survey (NYTS) results on e-cigarette use show that more than 5 million U.S. middle and high school students are current e-cigarette users (having used within the last 30 days)—with a majority reporting cartridge-based products as their usual brand.

    On Aug. 8, 2016, all e-cigarettes and other ENDS products became subject to the FDA’s tobacco authorities, including the premarket authorization requirements in the Federal Food, Drug, and Cosmetic Act. All e-cigarettes and other ENDS products on the market at that time needed to have authorization from the FDA to be legally marketed. However, as an exercise of its enforcement discretion, the agency had deferred enforcement of the premarket authorization requirements. To date, no ENDS products have been authorized by the FDA—meaning that all ENDS products currently on the market are considered illegally marketed and are subject to enforcement, at any time, in the FDA’s discretion.

    Beginning 30 days from the publication of the notice of availability of this guidance in the Federal Register, the FDA intends to prioritize enforcement against these illegally marketed ENDS products by focusing on the following groups of products that do not have premarket authorization:

    • Any flavored, cartridge-based ENDS product (other than a tobacco- or menthol-flavored ENDS product);
    • All other ENDS products for which the manufacturer has failed to take (or is failing to take) adequate measures to prevent minors’ access; and
    • Any ENDS product that is targeted to minors or likely to promote use of ENDS by minors.

    By not prioritizing enforcement against other flavored ENDS products in the same way as flavored cartridge-based ENDS products, the FDA said it has attempted to balance the public health concerns related to youth use of ENDS products with considerations regarding addicted adult cigarette smokers who may try to use ENDS products to transition away from combustible tobacco products.

    The FDA insists its enforcement priorities are not a “ban” on flavored or cartridge-based ENDS. The FDA has already accepted and begun review of several premarket applications for flavored ENDS products through the pathway that Congress established in the Tobacco Control Act.

    Manufacturers that wish to market any ENDS product—including flavored e-cigarettes or e-liquids—are required by law to submit an application to the FDA that demonstrates that the product meets the applicable standard in the law, such as whether the product is appropriate for the protection of the public health.

    If a company can demonstrate to the FDA that a specific product meets the applicable standard set forth by Congress, including considering how the marketing of the product may affect youth initiation and use, then the FDA could authorize that product for sale.

     

  • Russia hikes taxes

    Russia hikes taxes

    The Russian government has raised the excise duties on tobacco products, reports TASS news agency.

    Excise taxes on cigarettes and unfiltered cigarettes have increased to RUR1,966 ($31.80) per 1,000 sticks plus 14.5 percent of estimated cost calculated on the base of the maximum retail price, with a minimum of RUR2,671 per 1,000 sticks.

    The excise duties on cigarillos, beedis and kreteks have risen to RUR3,055 per 1,000 items from RUR2,938 per 1,000 items.

    Cigars they have seen an increase from RUR207 to RUR215 per item.

    Pipe tobacco, smoking tobacco, chewing tobacco, snuff tobacco and shisha tobacco are now taxed at RUR3,172 per kg, up from RUR3,050 per kg.

    The excise on heated tobacco and heated tobacco products has increased to RUR6,040 per kg from RUR5,808 per kg.

  • Turkey shelves tax hike

    Turkey shelves tax hike

    Turkey will refrain from hiking tobacco and alcohol taxes in the first half of 2020, reports Reuters.

    The tax increase is generally imposed automatically each year in line with producer price inflation. But Turkey’s Official Gazette published a presidential decision saying it would not be implemented in the first half.

    Economists said the move would curb inflation, which tumbled throughout 2019 from multi-year highs in the previous year. Meanwhile, the impact on the budget is expected to be limited. BCG Partners estimates the loss of revenues for the central government would be around 0.1 percent of gross domestic product.

    Last week Turkey raised the minimum wage to put more money into consumers pockets.

  • Tanks exempted from ban

    Tanks exempted from ban

    Open tank systems may be exempted from a U.S. ban on e-cigarette flavors expected to be announced this week. According to press reports, the Trump administration plans to ban all e-cigarette flavors except menthol and tobacco, but the restrictions won’t apply to the vaping devices that allow users to custom-mix flavors.

    “We have to protect our families,” President Donald Trump said Tuesday. “At the same time it’s a big industry, we want to protect the industry.”

    Tank systems are unpopular among teenagers and children, who tend to prefer vaporizers with prefilled cartridges, such as those made by Juul Labs.

    The policy is seen as a compromise between Trump administration officials who want to address a rise in teen vaping and those concerned about the impact on small businesses and the possible political fallout for President Trump. Polls commissioned by the vapor industry have shown an outright ban would be unpopular in key states for the 2020 election.

    Tobacco and vapor companies have lobbied lawmakers and the White House against banning flavors, including menthol. They have argued that adult smokers need e-cigarette options to help them switch from cigarettes. The companies also say that a full flavor ban would put thousands of vapor shops out of business.

    A Reynolds spokeswoman Tuesday called the FDA’s revised plan “a positive step as it sets a level playing field for the entire U.S. industry.”

    Despite the apparent compromise, the ban would still deal a blow to an industry with an estimated annual revenue of $9 billion. The sweet and fruity flavors that would be banned under the new policy represent about 80 percent of 2019 retail store e-cigarette sales in 2019, according to analysts.

    Nonetheless, health groups lamented that the new policy breaks the administration’s promise to eliminate flavored e-cigarettes.

    “By leaving menthol flavored e-cigarettes widely available and completely exempting liquid flavored products, this policy will not stop the youth e-cigarette epidemic,” said Matthew L. Myers, president of the Campaign for Tobacco-Free Kids.

    Stanton A. Glantz, director of the Center for Tobacco Research Control & Education at the University of California in San Francisco, described the new policy  as “a complete capitulation” to industry.

    The debate over a flavor ban was set off by two public health crises: soaring rates of youth vaping that experts feared was getting a new generation addicted to nicotine and the recent spate of severe lung injuries largely related to vaping THC, the high-inducing ingredient in marijuana. More than 2,500 people have been hospitalized since mid-August, and more than 54 people have died.

     

  • Caught off-guard

    Caught off-guard

    The sudden enforcement of a new U.S. law raising the minimum tobacco buying age to 21 has caught some tobacco and vape shop operators by surprise.

    The legislation signed by President Donald Trump on Dec. 20 gave the federal government 180 days to write new regulations barring the sale of tobacco to those under 21, plus another 90 days for those regulations to go into effect.

    However, the Food and Drug Administration said the new rules would take effect immediately.

    According to The National Association of Convenience Stores, the sudden implementation of the restrictions has left the association short-handed in terms of verification materials to provide to its members.

    Some tobacco and vape shops responded by saying they don’t plan to enforce the age-21 restrictions until they have FDA signage in hand.

    One health advocate cautioned that the rushed enforcement could backfire.

    “Seeking to ban previously legal sales to those ages 18 to 20 without giving viable options to those who are dependent on nicotine is less likely to lead to abstinence than to disrespect for the law,” said David Sweanor, an adjunct law professor at the University of Ottawa and the author of several e-cigarette and health studies.

    But others applauded the FDA’s swift action.

    “If you put things off, you are likely to get in trouble down the road,” said health policy consultant Scott Ballin.

    “Tobacco 21 is here to stay, and it is to the agency’s advantage to demonstrate that it is already on that road to implementation.”

  • Reflecting on mixed season

    Reflecting on mixed season

    As 2019 ends, the Zimbabwean tobacco industry looks back on a year of mixed fortunes, reports The Herald.

    The sector produced a record 259 million kg of leaf during the season, generating US$529 million in export revenues.

    But farmers struggled with payments, power cuts and fuel shortages, among other challenges.

    The 2019 tobacco crop also suffered from late rains and prolonged dry spells, especially when the crop was almost ready for reaping.

    During the first days of the season some farmers withdrew their bales in protest of the low prices on offer.

    As of Dec. 19., Tobacco Industry & Marketing Board (TIMB) statistics showed a decline of 16 percent in farmer registrations for the 2019-2020 season.

    TIMB said the decline in figures was transitory and more farmers would likely register as they plant their crops in the fields.

  • Vapers link illness to THC

    Vapers link illness to THC

    In an online survey of 1,000 vapers sponsored by The American Academy of Family Physicians (AAFP), 93 percent of respondents said they were aware of the recent outbreak of vaping-related illness that has killed 54 people and hospitalized more than 2,500 in the U.S.

    However, more than half of respondents said that only people who vape cannabis products were at risk of vaping-related illnesses and death, despite the fact that a some of the people hospitalized during the outbreak reported not using cannabis products.

    “What’s disturbing is that people aren’t aware of their risks,” said Natasha Bhuyan, a family physician in Phoenix. “They think that people are only at risk if they are using cannabis products or black-market products. They think, ‘My apple-flavored vape juice is just fine.’ But it could be just as dangerous as whatever else is out there.”

    But Michael Siegel, a professor at the Boston University School of Public Health, suggested the findings should be celebrated rather than lamented. “The AAFP is upset because many people correctly link the EVALI outbreak with the use of THC vaping products!” he wrote in his blog The rest of the story.

    “What this means is that the AAFP would rather that the public be misinformed about the cause of the EVALI outbreak. The AAFP would rather have people believe that e-cigarettes are causing the outbreak even though that is not true.”