Category: News This Week

Trade deal welcomed
U.S. tobacco exporters have welcomed the announcement of the recent trade agreement reached between the United States and China.
As part of the deal, China has reportedly agreed to buy more from the U.S. agricultural, manufacturing, energy and services sectors.
In the year preceding the U.S.-China trade dispute, the U.S. exported $162 million worth of tobacco to China, according to Pyxus International. Last year, that number decreased to only $4 million.
“The agreement is a welcome first step to reopening China’s vast consumer market to U.S. agricultural products including tobacco,” Pyxus wrote in a statement.
“While this compromise is only one piece of a much needed comprehensive trade agreement and additional steps need to take place to restart leaf exports, it is an encouraging move in the right direction, helping to foster enhanced trade and promote greater opportunities for success in the global economy.”
December 17, 2019
U.S. Senate OKs Higher Tobacco Age
The U.S. Congress would raise the tobacco purchasing age to 21 from 18 under a government spending bill unveiled on Monday.
If signed into law, the legislation would give the U.S. Food and Drug Administration six months to develop regulations. The agency would then have three years to work with states on implementing the change.
The tobacco legislation was originally sponsored by Senator Tim Kaine and Senate Majority Leader Mitch McConnell and has broad bipartisan support.
Tobacco companies have also been pushing for a higher purchasing age, which they see less disruptive to their business than other measures that have been under discussion.
Earlier this year, federal authorities vowed they would “clear the market” of flavored products, but the Trump administration appears to have backtracked amid industry opposition and warnings that a flavor ban could cost the president votes in the 2020 election.
While welcoming a higher buying age, the Campaign for Tobacco-Free Kids (CTFK) said the initiative shifts attention from efforts to ban flavored e-cigarettes.
“Juul and Altria have hijacked the tobacco 21 issue for their own nefarious reasons as a shield to fight efforts to prohibit flavored e-cigarettes,” said Matthew L. Myers, president of the CTFK. “It is deeply disappointing that the budget agreement gives these tobacco companies what they want without addressing the crisis caused by flavored e-cigarettes.”
Republican and Democratic lawmakers hope to pass the $1.4 trillion spending bill before current government funding runs out on Saturday to avoid a partial government shutdown.
December 17, 2019
Higher tobacco age likely
The U.S. Congress would raise the tobacco purchasing age to 21 from 18 under a government spending bill unveiled on Monday.
If signed into law, the legislation would give the U.S. Food and Drug Administration six months to develop regulations. The agency would then have three years to work with states on implementing the change.
The tobacco legislation was originally sponsored by Senator Tim Kaine and Senate Majority Leader Mitch McConnell and has broad bipartisan support.
Tobacco companies have also been pushing for a higher purchasing age, which they see less disruptive to their business than other measures that have been under discussion.
Earlier this year, federal authorities vowed they would “clear the market” of flavored products, but the Trump administration appears to have backtracked amid industry opposition and warnings that a flavor ban could cost the president votes in the 2020 election.
While welcoming a higher buying age, the Campaign for Tobacco-Free Kids (CTFK) said the initiative shifts attention from efforts to ban flavored e-cigarettes.
“Juul and Altria have hijacked the tobacco 21 issue for their own nefarious reasons as a shield to fight efforts to prohibit flavored e-cigarettes,” said Matthew L. Myers, president of the CTFK. “It is deeply disappointing that the budget agreement gives these tobacco companies what they want without addressing the crisis caused by flavored e-cigarettes.”
Republican and Democratic lawmakers hope to pass the $1.4 trillion spending bill before current government funding runs out on Saturday to avoid a partial government shutdown.
December 17, 2019
BAT Recognized in Fight Against Child Labor
British American Tobacco has been awarded “leader” status in the Global Child Forum’s benchmarking report. This report assesses and benchmarks 700 companies across nine industries and tracks the progress on how children’s rights are addressed within the corporate sector.
BAT received a score of 9.2 out of 10, compared to “industry” (food, beverage and tobacco) and “all companies” averages of 5.6. Leader status is awarded to companies who have developed and implemented policies and practices that address the organization’s impact on children’s rights across a number of key areas, and have taken concrete steps to move beyond policies, embedding children’s rights into company practice.
In a press statement, BAT attributed the recognition to the company’s comprehensive approach to due diligence around child labor risk in its supply chain, its founding membership of the Eliminating Child Labour in Tobacco-growing Foundation and its commitment to responsible product marketing that explicitly prohibits advertising to anyone under the age of 18.
December 16, 2019
BAT recognized
British American Tobacco has been awarded “leader” status in the Global Child Forum’s benchmarking report. This report assesses and benchmarks 700 companies across nine industries and tracks the progress on how children’s rights are addressed within the corporate sector.
BAT received a score of 9.2 out of 10, compared to “industry” (food, beverage and tobacco) and “all companies” averages of 5.6. Leader status is awarded to companies who have developed and implemented policies and practices that address the organization’s impact on children’s rights across a number of key areas, and have taken concrete steps to move beyond policies, embedding children’s rights into company practice.
In a press statement, BAT attributed the recognition to the company’s comprehensive approach to due diligence around child labor risk in its supply chain, its founding membership of the Eliminating Child Labour in Tobacco-growing Foundation and its commitment to responsible product marketing that explicitly prohibits advertising to anyone under the age of 18.
December 16, 2019
PMI-Linked Life Insurer Eyes Japan
Daniel Pender
Reviti, a life insurance company associated with Philip Morris International (PMI), is looking to enter Japan, reports Reuters. Reviti offers lower rates to smokers who switch to electronic nicotine delivery devices.
PMI commands more than 70 percent of the Japanese heat-not-burn market with its IQOS device.
Reviti Chief Executive Daniel Pender told Reuters that the insurer was spending time looking at the Japanese market because it has a significant number of people who smoke and boasts many vaping products.
Most insurers treat smokers and vapers the same, meaning they can pay close to double the premiums of nonsmokers. Reviti, however, offers a discount of up to 15 percent for vapers in Britain. Customers who quit tobacco and nicotine altogether get a discount of up to 50 percent (also see, “Rewarding change,” Tobacco Reporter, June 2019.
Pender said Reviti could disrupt the market in Japan, where most life insurers work on aggregate rates, meaning they do not distinguish between smokers and non-smokers in terms of prices.
December 16, 2019
Reviti eyes Japan
Daniel Pender
Reviti, a life insurance company associated with Philip Morris International (PMI), is looking to enter Japan, reports Reuters. Reviti offers lower rates to smokers who switch to electronic nicotine delivery devices.
PMI commands more than 70 percent of the Japanese heat-not-burn market with its IQOS device.
Reviti Chief Executive Daniel Pender told Reuters that the insurer was spending time looking at the Japanese market because it has a significant number of people who smoke and boasts many vaping products.
Most insurers treat smokers and vapers the same, meaning they can pay close to double the premiums of nonsmokers. Reviti, however, offers a discount of up to 15 percent for vapers in Britain. Customers who quit tobacco and nicotine altogether get a discount of up to 50 percent (also see, “Rewarding change,” Tobacco Reporter, June 2019.
Pender said Reviti could disrupt the market in Japan, where most life insurers work on aggregate rates, meaning they do not distinguish between smokers and non-smokers in terms of prices.
December 16, 2019
22nd Century CEO Resigns
22nd Century Group is searching for its third chief executive in less than five months after Clifford Fleet announced Friday he was stepping down.
Fleet has been named as president and chief executive of the Colonial Williamsburg Foundation, effective Jan. 1. He will remain on 22nd Century’s board of directors and serve on an executive committee that will choose his successor.
22nd Century also announced the appointment of Michael Zercher as its president. Previously, Zercher was chief operating officer.
Fleet took over as chief executive Aug. 3. He served as Philip Morris USA’s chief executive and president from November 2013 to May 2017.
Henry Sicignano III resigned unexpectedly as chief executive on July 26 for what the company described as personal reasons. He had been the chief executive since March 2015 and president since January 2011.
22nd Century develops very low nicotine cigarettes and could play a prominent role in the Food and Drug Administration’s (FDA) quest to drastically cut nicotine levels in traditional cigarettes.
On July 19, the FDA said it had begun the process of reviewing two modified-risk tobacco product applications from 22nd Century.
Approval of the very-low-nicotine cigarettes could lead to a sharp increase in revenue for 22nd Century and a potential buyout by a global tobacco company.
December 16, 2019
CEO steps down
22nd Century Group is searching for its third chief executive in less than five months after Clifford Fleet announced Friday he was stepping down.
Fleet has been named as president and chief executive of the Colonial Williamsburg Foundation, effective Jan. 1. He will remain on 22nd Century’s board of directors and serve on an executive committee that will choose his successor.
22nd Century also announced the appointment of Michael Zercher as its president. Previously, Zercher was chief operating officer.
Fleet took over as chief executive Aug. 3. He served as Philip Morris USA’s chief executive and president from November 2013 to May 2017.
Henry Sicignano III resigned unexpectedly as chief executive on July 26 for what the company described as personal reasons. He had been the chief executive since March 2015 and president since January 2011.
22nd Century develops very low nicotine cigarettes and could play a prominent role in the Food and Drug Administration’s (FDA) quest to drastically cut nicotine levels in traditional cigarettes.
On July 19, the FDA said it had begun the process of reviewing two modified-risk tobacco product applications from 22nd Century.
Approval of the very-low-nicotine cigarettes could lead to a sharp increase in revenue for 22nd Century and a potential buyout by a global tobacco company.
December 16, 2019
PMI Requests Legalization of Heating Products
Philip Morris International has applied to the Therapeutic Goods Administration (TGA) in Australia to legalize its heat-not-burn tobacco products. In Australia, only nicotine in “tobacco prepared and packed for smoking” can be legally sold. Australian health minister Greg Hunt said that any vapor product would need to be approved by the TGA to be sold in the country.
Legalise Vaping Australia’s campaign director, Brian Marlow, noted that the TGA approval process would require millions of dollars to complete.
“This is a retrograde move orchestrated by our federal government and is designed to protect Big Tobacco and kill off Australia’s rapidly growing vaping industry, which is made up of small family retail businesses and highly innovative and world-leading e-liquid manufacturers,” he said.
“Australia’s 300,000 vapers and 2.6 million smokers should not be forced to access just one TGA approved nicotine vaping product owned by a multinational tobacco company, but they should have the freedom to purchase one of the many hundreds of combinations of available vaping products that suits them and helps them quit smoking,” said Marlow.
December 13, 2019