Category: News This Week

  • Brazilian Flood Damage Assessed

    Brazilian Flood Damage Assessed

    Photo: SindiTabaco

    The floods that hit Rio Grande do Sul in early May have done significant damage to the Brazilian state’s tobacco-growing sector, according to a survey conducted by the Interstate Tobacco Industry Union (SindiTabaco) and its associate companies.

    In all, the floods impacted 1,929 rural properties in 75 municipalities covered by the survey. Candelaria municipality was worst impacted, with 214 tobacco farmers suffering losses. Other heavily impacted municipalities included Agudo (136 affected farmers), Barros Cassal (132) and Venancio Aires (116).

    In terms of monetary impact, Venancio Aires was most impacted, with the industry suffering a loss of BRL18.3 million ($3.37 million). Other hard-hit municipalities included Candelaria (BRL16.52 million in losses), Agudo (BRL6.35 million) and Ibarama (BRL5.96 million).

    We are confident that, in spite of this tragedy, the production of tobacco in the affected areas should remain close to the projections estimated for the 2024–2025 growing season

    The survey also demonstrated that 96 percent of the affected farmers intend to continue producing tobacco. “We need to provide the conditions that make it possible for them to carry on with their activities in the upcoming crop year and, within this context, the associate companies have already replaced the necessary inputs to restore the 2,070 seedbeds of lost seedlings, an investment that amounts to approximately BRL1.6 million,” said SindiTabaco President Iro Schuenke during a meeting with representatives of tobacco growers’ association Afubra, the Federation of Agricultural Workers and the Rio Grande do Sul State Federation of Agriculture.

    “We are confident that, in spite of this tragedy, the production of tobacco in the affected areas should remain close to the projections estimated for the 2024–2025 growing season.”

    While the industry and the tobacco farmers’ representatives are doing their best to minimize losses, they will require public support to rebuild curing barns and access credit lines, according to Schuenke, who noted that many tobacco farmers also produce food crops.

  • Health Ministers Debate EU-wide Flavor Ban

    Health Ministers Debate EU-wide Flavor Ban

    EU health ministers on June 21 discussed proposals to restrict flavors in consumer nicotine products, such as vapes and nicotine pouches.

    The EU Employment, Social Policy, Health and Consumer Affairs Council will consider proposals from Latvia and Denmark to support an EU-wide flavor ban and a crackdown on cross-border sales, among other recommendations. 

    If the health ministers reach consensus support for these proposals, the next step would be to ask the European Commission to introduce draft legislation, which would eventually be voted on by the council and the European Parliament, according to Vaping360.

    Denmark, Estonia, Finland, Hungary, Lithuania, the Netherlands and Slovenia already ban vape flavors. Spain recently completed a public consultation on a proposed flavor ban while Latvia reportedly is in the process of introducing flavor restrictions.

    The Tobacco Products Directive allows the member states to set their own rules for flavors. The Latvian proposal asserts that individual bans don’t work due to cross-border sales, among other factors.

    Vaping activists have urged the EU to keep e-cigarette flavors legal.

    “By supporting a flavor ban, EU health ministers would push millions of adults back to smoking or into the black market, endangering lives and ignoring scientific evidence. A flavor ban would be a huge step backward for public health and harm reduction,” said Michael Landl, director of the World Vapers’ Alliance, in a statement.

    “Scientific research consistently shows that flavors play a crucial role in helping smokers quit. The endorsement of the flavor ban ignores those findings and the clear will of the people, opting instead for a policy that will cause more harm than good. The World Vapers’ Alliance will continue fighting for reasonable, evidence-based policies that truly protect public health.”

  • FDA Authorizes NJOY Menthol Products

    FDA Authorizes NJOY Menthol Products

    Image: Tada Images

    The U.S. Food and Drug Administration today authorized four NJOY products through the premarket tobacco product application (PMTA) pathway. The FDA issued marketing granted orders to NJOY, an Altria subsidiary, for two pods for its Ace closed e-cigarette device, which was authorized in April of 2022, and two disposable e-cigarettes—NJOY DAILY Menthol 4.5%, and NJOY DAILY EXTRA Menthol 2.4%.

    The two authorized ACE pods are the NJOY ACE Pod Menthol 2.4% and the NJOY ACE Pod Menthol 5%.  All four of the newly authorized products are pre-filled and non-refillable.

    The decision is significant because it is the first non-tobacco flavored vapor product to be authorized by the FDA. In his TPL Review, Office of Science Director Matthew Farrelly said that NJOY had “demonstrated the potential for these new products to benefit adults who smoke [combustible cigarettes] as compared to those who continue to use [combustible cigarettes] exclusively,” and that the company had “also proposed robust marketing plans that include restrictions beyond those required with PMTA authorization.” Farrelly also highlighted data from a longitudinal cohort study that NJOY submitted with its application, which pointed to “robust absolute switching rates” as well as a higher rate of complete switching than tobacco-flavored NJOY DAILY ENDS.

    The FDA noted, however, that applications are reviewed on a case-by-case basis, and that this authorization of menthol products does not apply to any other menthol-flavored vaping products.

    “It is the responsibility of the applicant to provide the necessary evidence to obtain marketing authorization, and the FDA has made clear what’s needed to successfully achieve that outcome,” said CTP Director Brian King in the agency’s press release. “This action is further reinforcement that authorization of an e-cigarette product is possible when sufficient scientific evidence has been submitted to the agency to justify it.”    

    Altria welcomed the authorizations. “With the addition of NJOY menthol e-vapor products, we are now uniquely positioned with an FDA-authorized portfolio to support adult smokers in their transition to smoke-free alternatives. We believe these marketing orders are a testament to the quality of the NJOY products and the strength of evidence supporting the authorizations of the NJOY menthol e-vapor products,” said NJOY President and CEO Shannon Leistra in a statement.

    “We believe that, for tobacco harm reduction to succeed, adult smokers must have access to a robust marketplace of FDA-authorized smoke-free alternatives,” said Paige Magness, senior vice president, regulatory affairs of Altria Client Services. “FDA authorization of NJOY menthol e-vapor products provides adult smokers and vapers with regulated alternatives to the illicit flavored disposable e-vapor products on the market today. We believe the NJOY menthol marketing orders are a positive outcome for public health.”

    The FDA previously authorized the NJOY Ace and three of its tobacco-flavored pods on April 27, 2022.  In March of 2023, Altria acquired NJOY for $2.75 billion cash.  The acquisition was completed on June 1, 2023.  However, the transaction terms included $500 million in additional cash payments contingent upon the product approvals received today, which would bring Altria’s total spend to $3.25 billion.

  • Zimbabwe Cigar Tobacco Marketing Season Opens

    Zimbabwe Cigar Tobacco Marketing Season Opens

    Image: Taco Tuinstra

    Zimbabwe’s 2024 cigar tobacco marketing season opened in Manicaland with a high price of $7.05 per kilogram recorded on the first sale, according to The Herald. The crop is in its 10th year of production.

    Growers have sold 5,200 kg of cigar tobacco worth $16,432 at an average price of $3.16 per kilogram, according to Tobacco Industry and Marketing Board (TIMB) statistics.

    “Growers comprised 11 small-scale growers all doing half a hectare each and one commercial farmer doing four hectares. The highest price fetched was $7.05 per kilogram,” said Chelesani Tsarwe, TIMB public affairs officer. Sales took place at Mapeto Farm in Burma Valley in the Manicaland province.

    “The first of the anticipated three sales saw 5,022 kg of the crop undergoing sale at an average price of $3.16 per kilogram. The crop was grown under contract with 14 small-scale farmers and one commercial grower,” said James Lindsay Guild, owner of Mapeto Farm. The crop was fermented at the farm for at least a year, according to Guild.

    “The premium tobacco from the crop is destined for the American cigar market. The average yield is around 1,500 kg per hectare,” Guild said.

    The small-scale farmers produced the crop under dryland, and the commercial farmer used irrigation.

  • Germany Revokes Shisha Packaging Rules

    Germany Revokes Shisha Packaging Rules

    Image: ir1ska

    Germany’s finance ministry has revoked its rules for packaging shisha tobacco, which caused major backlash and some retailers to go bankrupt, according to DPA International.

    The packaging regulation was introduced in 2022 to prevent tax evasion, which was a frequent issue in shisha bars. Shisha bars would buy large packages of shisha tobacco and divide them into small portions, which the government said was tax evasion because the bars were paying less in taxes than they should be.

    The packaging regulation subsequently banned 200-gram packs and 1,000-gram packs and only allowed packs to be a maximum of 25 grams. The finance ministry expected an additional tax revenue of €155 million ($165 million) following the restrictions; however, tax income declined as the black market increased.  

    According to DPA, the regulations will be lifted beginning July 1, allowing packs of all sizes to be legal again.

  • BAT to Introduce Vape Vending Machines

    BAT to Introduce Vape Vending Machines

    Photo: evannovostro

    BAT plans to introduce vape and nicotine pouch vending machines in pubs in the U.K., according to Better Retailing.

    The company is hiring at least 12 representatives to target on-trade establishments with the aim of “securing new locations for vending machine and other business development solutions to ultimately increase sellout of specific BAT-related products.”

    Areas being targeted include Basingstoke, Birmingham, Bury St. Edmunds, Cambridge, Coventry, Crawley, Edinburgh, Exeter, Maidstone, Reading, Royal Tunbridge and Sevenoaks.

    Six-month trial contracts are set to start on June 24 “with ambition to extend into 2025 and beyond.”

    “BAT U.K. is excited to be working on a project to sell our Vuse and Velo brands via age-gated vending machines,” said a BAT spokesperson. “At BAT, our purpose is bold: to build A Better Tomorrow. We will do this by reducing the health impact of our business, including by reaching our adult consumers where they use our alternative nicotine products. Vending machines represent an exciting opportunity to further deliver on our purpose.”

    In response to concerns about underage use, BAT stated that their “machines will use best-in-class age verification to ensure that this essential principle is maintained.”

  • ‘Trading Standards Underfunded’

    ‘Trading Standards Underfunded’

    Image: doethion

    Trading Standards, the agency tasked with enforcing U.K. consumer protection laws and fair trading practices, needs more money to enforce the country’s vape legislation, according to an analysis commissioned by the Association of Convenience Stores.

    The study found that the agency needs £168.34 million ($213.45 million) over five years to properly carry out its responsibilities. This figure represents a near 30 percent increase in net budgets for Trading Standards and takes into consideration the cost of enforcement officers, training, detection dogs, legal fees and product disposal.

    The U.K. government previously committed to a £30 million annual enforcement top-up; however, it appears only one-third of the funding boost would have actually been assigned to Trading Standards, according to the U.K. Vaping Industry Association (UKVIA).

    “The ACS-commissioned analysis shows that a huge funding boost is needed if we are to rain down on illegal vape sellers with the full force of the nation’s dedicated, but under-resourced, Trading Standards officers—a cost that the U.K. government has yet failed to meet but one that could be covered by the sector’s comprehensive licensing framework,” said UKVIA Director General John Dunne in a statement.

    “It’s rare for an industry to advocate for its own regulation, but we have and will continue to call on the government to introduce a vape licensing scheme because it is what is needed to back effective enforcement and to usher in a new age of accountability for our sector.”

  • Cigarette Smuggling Impeding Gaza Aid

    Cigarette Smuggling Impeding Gaza Aid

    Image: Robert

    Restrictions on imports of nonessential goods into Gaza have turbocharged cigarette smuggling, reports The Wall Street Journal.

    Aid trucks and storage depots have become targets for Palestinian smugglers seeking to retrieve illicit smokes stashed inside shipments by their accomplices, say U.N. and Israeli officials. Other local criminals are also attacking vehicles they suspect have cigarettes hidden somewhere on board, they say.

    Cigarette prices have soared since Israel limited imports into Gaza to essential goods—which don’t include cigarettes—after Hamas’ Oct. 7 attacks. Cigarettes sell for as much as $25 apiece in isolated Gaza.

    Criminal attacks on aid convoys have reportedly become so severe that over a thousand truckloads of aid have been left sitting on the Gaza side of the Kerem Shalom border crossing with Israel.

    A UN official described cigarettes as “the new gold” in Gaza.

  • Vape Registry Rule Slipped Into NC Bill

    Vape Registry Rule Slipped Into NC Bill

    North Carolina State House of Representatives Chamber (Credit: J Zehnder)

    A new bill in North Carolina, if passed, would require the state to certify vaping and other next-generation tobacco products for sale.

    The Senate Judiciary Committee approved the proposal Wednesday. It was slipped into HB 900, which deals with Wake County leadership academies and their ability to maintain state designations. The House passed it without objection.

    To become law, the bill would need to pass the Senate and then the House before the end of the session. Senate leaders have said they plan to complete their work by the end of the month, local media reports.

    The chambers, both controlled by Republicans, have been unable to come to an agreement on budget modifications for the fiscal year that begins July 1.

    A North Carolina lawmaker wrongly told other lawmakers during debate that the U.S. Food and Drug Administration regulates the products, but the regulatory agency does not have the ability to check which products are being sold.

    The bill would fine retailers who sell products that aren’t on the registry for initial violations. The legislation could also suspend or revoke the establishment’s license.

    Vaping industry representatives warned lawmakers that the bill will cost people jobs and money.

    PMTA registry laws are already being enforced in AlabamaLouisiana and OklahomaWisconsin passed a registry law in December and will become effective July 1, 2025. 

    Utah also passed a registry bill that included a flavor ban that will become active on Jan. 1, 2025, and Florida has a unique registry that also begins Jan. 1, 2025.

  • Romania Bans E-cig and Pouch Advertising

    Romania Bans E-cig and Pouch Advertising

    Photo: xpable

    Romania’s Chamber of Deputies adopted a bill banning advertising of electronic cigarettes and nicotine pouches this week, reports Romania Insider.

    “It is prohibited to explicitly advertise tobacco products, electronic cigarettes, including vape types, products intended for inhalation without burning from tobacco substitutes, electronic devices for heating tobacco, and products intended for inhalation without burning from tobacco substitutes as well as nicotine pouches for oral use (pouches) broadcast within radio and television programs and on public transport tickets,” the bill states. 

    The bill also bans advertising for these products within educational institutions and healthcare facilities or within 200 meters of their entrances. Advertising is also banned in publications primarily intended for minors and in theaters before, during and after performances intended for minors. Ads are banned that target minors, depict minors consuming these products, suggest these products have therapeutic properties or have a stimulating, sedative effect or can solve personal problems, give a negative image of abstinence or do not contain warning inscriptions in Romanian.