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Category: News This Week

  • BAT Uganda Points to Illicits for 18% Revenue Drop

    BAT Uganda Points to Illicits for 18% Revenue Drop

    British American Tobacco Uganda Ltd. reported an 18% drop in gross revenue to Shs 67 billion ($18.1 million) for fiscal 2025, citing a surge in illicit cigarette sales, according to audited results. Net revenue fell 21% to Shs 36.3 billion ($9.8 million), while total comprehensive income declined 19% to Shs 9.8 billion ($2.6 million). The company attributed the decline to rising tax-evaded cigarette consumption, which research shows reached 45% of the market by December 2025, up from 34% the previous year — equivalent to an estimated Shs 53 billion ($14.3 million) loss in government revenue. Operating costs fell 21% to Shs 24 billion ($6.5 million), but net asset value dropped sharply to Shs 32.5 billion ($8.8 million) from Shs 49.3 billion ($13.3 million) in 2024.

    Despite the downturn, BAT Uganda’s tax contributions rose 4% to Shs 46.4 billion ($12.5 million), aided by capital gains from the sale of a non-strategic asset. The board proposed a final dividend of Shs 199 ($0.054) per share, down 5% from 2024, payable July 31 to shareholders on record as of July 24. Company secretary Paul Mbuga emphasized the need for a multi-agency government response, particularly at the South Sudan border, to combat illicit imports, noting that contraband cigarettes often bypass digital tax stamps and health warnings, undercutting prices and presenting public health risks.

  • Bangladesh Court Gives Authorities 30 Days to Close Hookah Lounges

    Bangladesh Court Gives Authorities 30 Days to Close Hookah Lounges

    Yesterday (March 3), Bangladesh’s High Court ordered authorities to shut down illegal shisha and hookah lounges nationwide within 30 days and issued a statement, questioning why failure to act against such establishments should not be declared unlawful. The bench of Justices Razik-Al-Jalil and Md Anowarul Islam directed secretaries of the home and health ministries, as well as the heads of the Department of Narcotics Control, Rapid Action Battalion, Dhaka Metropolitan Police, and Dhaka North and South city corporations to respond.

    The order followed a public interest writ filed by Supreme Court lawyer SM Zulfiqure Ali Junu, who argued that many lounges operate under the guise of cafés and restaurants without lawful authority, posing serious public health risks. The petition cited violations of the Smoking and Tobacco Products Usage (Control) Act, 2005 (Amended 2013) and the Narcotics Control Act, 2018, alleging that authorities had failed to act despite reports of minors accessing shisha.

  • Irish Authorities Seize 9M Cigarettes on Ferry

    Irish Authorities Seize 9M Cigarettes on Ferry

    Irish authorities seized 9 million smuggled cigarettes at Rosslare Europort in Co. Wexford this week following a routine Revenue search. The haul, from a truck and trailer arriving on a ferry from Dunkerque, France, consisted of Richmond King Size cigarettes with an estimated value of over €8 million, representing a potential loss of more than €6.4 million to the Irish exchequer. A man in his 40s was questioned in connection with the seizure, and investigations are ongoing.

  • Geek Bar Returning to Europe

    Geek Bar Returning to Europe

    Geek Bar announced it is officially returning to the European market, launching its Geek Bar Spark across “select countries” this month, with “additional markets and flavor options to follow.” The new-generation, reusable system includes a fast-charging battery, supports up to 1,000 puffs per prefilled pod, and offers new “Europe-specific flavors,” including Moonshine Cherries, Tropical Punch, Pineapple Lemon Fizzy, and Apple Cider.

  • Herzog Talks Industry Shifts, Expects Market to Hit $67B by 2035

    Herzog Talks Industry Shifts, Expects Market to Hit $67B by 2035

    Goldman Sachs Managing Director Bonnie Herzog described the U.S. nicotine market as “attractive and growing,” projecting total revenues to reach about $67 billion by 2035 as the profit pool shifts decisively toward smoke-free products. Speaking last week at CSP’s Convenience Retailing University, she said cigarettes, which currently generate about 70% of industry operating profit, are expected to fall to roughly 50% by 2035, with smoke-free categories becoming the primary engine of profit growth due to stronger unit economics. Smoke-free products already account for about 48% of U.S. nicotine volumes, a figure she expects to rise to around 75% over the next decade, driven by downtrading and cross-category movement.

    On e-vapor, Herzog said illicit products represent roughly 70% of the market today, a dynamic she said is suppressing growth in the formal channel and weighing on retailer sentiment amid limited enforcement. While she expects illicit penetration to decline over time, she cautioned that vapor will likely underperform other reduced-risk categories until enforcement improves, adding that British American Tobacco is positioned to remain the largest branded player.

    In modern oral, Herzog forecast nicotine pouches to reach nearly $11 billion in revenue by 2035 and become the second-largest category by volume behind e-vapor. She highlighted continued momentum for Zyn from Philip Morris International, citing retailer survey data showing strong fourth-quarter gains supported by promotions, and described Velo Plus from Reynolds American Inc. as a “fierce” competitor in the expanding pouch segment.

  • BAT’s Velo Pouches Back on Market in Kenya

    BAT’s Velo Pouches Back on Market in Kenya

    BAT Kenya resumed sales of its Velo oral nicotine pouches following regulatory clarity, signaling a renewed push into non-combustible products amid declining cigarette consumption, according to Capital Business. Company officials said this “regulatory clarity” involved confirming that oral nicotine pouches can be marketed and retailed under current rules rather than being in a grey zone or treated the same as banned products. The move supports the company’s strategy to diversify revenue streams in a market challenged by rising illicit tobacco sales. BAT Kenya reported a 10% drop in turnover in 2025 to Sh23.2 billion ($176.6 million), with Velo contributing about Sh232 million ($1.8 million), or roughly 1% of total revenue, between July and December 2025.

    Finance Director Philemon Kipkemoi said the return was enabled by a regulatory environment now accommodating oral nicotine products. With local manufacturing divested, Velo is currently imported from Pakistan, though local production may be reconsidered depending on performance. Globally, British American Tobacco has reached 34 million non-combustible product users, 68% of its 2030 target, and aims for 50% of revenue from such products by 2035. In Kenya, Velo could contribute 15–25% of total revenue within three to five years, forming a key part of BAT’s strategy to expand alternative nicotine products in line with evolving regulations and consumer trends.

  • Singapore Drastically Raising Vape Fines

    Singapore Drastically Raising Vape Fines

    Singapore’s government introduced sweeping amendments to its tobacco control laws that would sharply raise penalties for vaping-related offences and expand powers to tackle psychoactive substances. The Tobacco (Control of Advertisements and Sale) (Amendment) and Other Matters Bill, tabled on Feb 12, proposes renaming the law the Tobacco and Vaporizers Control Act and increase maximum fines for users from S$2,000 to S$10,000 ($1,560 to $7,800), S$200,000 ($156,000) and up to six years’ jail for sellers, and S$300,000 ($234,000) and up to nine years’ jail for smugglers. The move comes six months after authorities tightened enforcement, as more than 3,500 people were caught for vape possession and use in the final four months of 2025.

    The Bill also targets etomidate-laced vapes, or “Kpods,” by listing etomidate and its analogues as specified psychoactive substances, aligning penalties with those under the Misuse of Drugs Act. Etomidate was temporarily classified as a Class C drug from Sept 1, 2025, amid rising youth use, with the listing now extended to April 30 while legislative amendments are finalized. The proposed changes would allow for strict penalties — including imprisonment and caning for trafficking and smuggling — and apply extraterritorially to Singaporeans and permanent residents who commit offences overseas.

  • Spain’s PSOE Wants to Restrict Sale of Vapes, Pouches

    Spain’s PSOE Wants to Restrict Sale of Vapes, Pouches

    The Spanish Socialist Workers’ Party (PSOE) submitted a non-legislative proposal in Congress to restrict the sale of vapes and nicotine pouches, according to Infosalus. The initiative seeks to ban online sales and prohibit their availability in non-specialized retail outlets, limiting distribution to authorized stores only. The move is part of a broader effort to curb consumption and protect public health, particularly among young people, by tightening control over access to these products.

    “The objective is to put an end to the current ‘lack of control’ in the marketing of these products, which, in its opinion, facilitates tax evasion and non-compliance with current health and environmental regulations,” Infosalus wrote.

  • Philippine Health Groups Want Full Tobacco, Vape Ban

    Philippine Health Groups Want Full Tobacco, Vape Ban

    Public health groups in the Philippines are urging the government to impose a total ban on e-cigarettes, heated tobacco products (HTPs), and other nicotine delivery systems, citing their health risks and rising youth uptake. The renewed push follows Myanmar becoming the eighth ASEAN country to enforce a vape ban, while Philippine lawmakers continue to debate tax rates for tobacco and vape products. Data show that around 14% of Filipino youth and 2% of adults use e-cigarettes.

    HealthJustice board member Dr. Jaime Galvez Tan said a comprehensive ban would offer the strongest public health protection, ensure regulatory clarity, and complement calls for higher, uniform tobacco taxes. Dr. Ulysses Dorotheo of SEATCA noted that a total ban would also help address tax administration challenges, curb illicit trade, and align with the Philippines’ obligations under the WHO Framework Convention on Tobacco Control.

  • PMJ Launches First IQOS Capsule

    PMJ Launches First IQOS Capsule

    Philip Morris Japan launched its first capsule-equipped cigarette stick, the “Sentia Purple Capsule,” for the IQOS ILUMA heated tobacco series on March 2. Initially available at IQOS stores nationwide, the rollout at convenience stores and other tobacco retailers begins April 6, with the Nagoya IQOS store relocating on March 7.

    The capsule product features blueberry-flavored capsules with invigorating menthol, allowing users to release a burst of menthol and blueberry aroma by crushing the capsule. The product’s purple color reflects the blueberry inspiration. This addition brings the SENTIA lineup to 18 brands, including regular, menthol, flavored, and capsule variants.

    The price is 530 yen ($3.34) per 20-stick pack, rising to 570 yen ($3.59) from April 1. Daniel Sevsick, Philip Morris Japan’s portfolio marketing director, highlighted that this is SENTIA’s first menthol capsule product.