Category: News This Week

The U.S. Food and Drug Administration has launched a criminal probe into the vaping-related deaths and illnesses that have plagued the United States in recent weeks, reports USA Today.

“We are in desperate need of facts,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products.

The investigation will focus on the products, where they were purchased and how they are being used.

As of Sept. 20, the Centers for Disease Control and Prevention (CDC) was aware of 530 cases of lung injury and seven deaths.

The cause of the outbreak remains a mystery. No consistent product, substance or brand has been identified in all cases, CDC said. Most, but not all, patients reported a history of using e-cigarette products containing THC, a psychoactive chemical found in cannabis.

The FDA has collected more than 150 vaping product samples for forensic analysis, and the agency is testing them for traces of nicotine, THC, opioids, cutting agents, additives, pesticides, poisons, toxins and other substances.

Hurricane Dorian has destroyed at least 20 percent to 25 percent of North Carolina tobacco farmers’ crops, according to David Thomas of the U.S. Tobacco Cooperative.

Farms in about 15 of the states’ counties were severely affected, including Sampson county and Duplin county, which produce much of the state’s tobacco.

“It is taking a toll on the tobacco production in North Carolina, and the last three years have been really stressful on tobacco farmers,” said Thomas.

Hurricanes also bring salt inland through storm surge, which can further degrade the quality of tobacco plants.

In a normal season, farms would have the rest of this month to complete harvesting. But Thomas says many farmers will probably not finish gathering the tobacco left in the field this year.

New York state has passed emergency legislation banning most flavored e-cigarettes for 90 days. During that period, consumers will be able to purchase only tobacco-flavored and menthol-flavored e-cigarettes.

State Health Commissioner Howard Zucker said New York could not wait for federal action or the state legislature to come back into session.

New York state high school student use of tobacco products rose 160 percent from 2014 to 2018, according to data presented by Zucker. Surveys showed that 40 percent of 12th grade students in New York state had used e-cigarettes.

“Flavoring is a key youth marketing strategy,” he said.

As of Sept. 14, there are 74 confirmed cases of people who have serious lung illness after vaping in New York state, Zucker said. Around the United States, seven deaths have been linked to vaping-related illnesses, according to the U.S. Centers for Disease Control and Prevention.

New York is the second U.S. state to ban the sale of flavored e-cigarettes after Michigan.

Juul products were unavailable on e-commerce websites in China days after they entered the world’s largest tobacco market.

“While Juul products are not currently available on e-commerce websites in China, we look forward to continued dialogue with stakeholders so that we can make our products available again,” a Juul Labs spokesperson said without disclosing a reason for the halt of sales.

The U.S. company is facing a regulatory crackdown and increased government scrutiny in its domestic market.

Juul Labs has been expanding internationally, entering markets such as South Korea, Indonesia and the Philippines.

Scandinavian Tobacco Group will acquire the holding company of the Royal Agio Cigars group for €210 million ($232.47 million).

Royal Agio’s portfolio includes brands such as Mehari´s, Panter and Balmoral. Based in Duizel, Netherlands, the company has approximately 3,200 full-time employees. Royal Agio’s reported annual net sales full year 2018 were €133 million with an EBITDA of €18 million.

The company was featured in the August edition of Tobacco Reporter.

Royal Agio provides Scandinavian Tobacco Group access to a strong product portfolio and important market positions in key European machine-made cigar markets. The acquisition can help Scandinavia Tobacco Group secure leading positions in France, Belgium and The Netherlands and significantly improve its position in key cigar markets such as Spain and Italy.

If the transaction is completed, the proforma combined group net sales for 2018 would be approximately DKK7.7 billion ($1.14 billion) with a combined workforce of more than 10,000 employees.

“I am very pleased and proud that we have taken this important step towards an acquisition of Royal Agio,” said Niels Frederiksen, CEO of Scandinavian Tobacco Group.

“If completed, the acquisition will be an important step in our ambition of becoming the global leader in cigars, as it significantly strengthens our position in several key machine-made cigar markets in Europe and enables us to deliver an attractive range of cigars of the highest standards to our consumers.”

The transaction is subject to satisfactory conclusion of a statutory employee consultation process in the Netherlands and subsequent completion will require approval from competition authorities in certain European jurisdictions.

Scandinavian Tobacco Group expect the transaction to conclude in the first half of 2020.

British American Tobacco (BAT) and Japan Tobacco (JT) have been included in indices tracking corporate sustainability performance.

BAT has been listed in the Dow Jones Sustainability Indices (DJSI) for the 18th consecutive year.

BAT achieved industry-best scores in 11 of the 21 categories, including supply chain management, human rights and labor practice indicators.

The company has also achieved a maximum 100 percent rating in environmental reporting, environmental policy and management systems, and operational eco-efficiency as well as a score of 98 in climate strategy.

“Our position in the DJSI World Index is testament to our commitment to transforming our company by offering adult consumers an innovative range of potentially reduced-risk products,” said Simon Cleverly, group head of corporate affairs. “It also recognizes our commitment to upholding the highest standards of corporate conduct in every country we operate in around the world.”

Meanwhile, JT has been selected as a member of the DJSI Asia Pacific for the sixth consecutive year.

From among approximately 600 major companies in the Asia-Pacific region, 148 companies are included in the DJSI Asia Pacific this year.

“We are delighted to remain as a member of DJSI Asia Pacific for the sixth consecutive year,” said Chigusa Ogawa, JT’s senior vice president of sustainability management. “Selection to DJSI endorses our commitment to achieve sustainable growth and to contribute to the sustainable development of our society.”
 

The Public Health Association (PHA) of New Zealand has issued a public apology over statements made by its CEO Prudence Stone about Marewa Glover, director of The Centre for Research Excellence: Indigenous Sovereignty and Smoking.

In a recent PHA newsletter, Stone stated that Glover was influenced by Philip Morris International and that Glover had made false statements to the select committee considering amendments to the Smoke-free Environments (prohibiting smoking in motor vehicles carrying children) Amendment Bill.

“Dr. Stone and the PHA retract these comments and unreservedly apologize to Dr. Glover for the comments made,” the apology stated.

A Maori behavioral scientist, Glover was recognized earlier this year for her dedication to reducing smoking when she was named one of three finalists in the prestigious New Zealander of the Year Award.

Glover is scheduled to speak at the Global Tobacco and Nicotine Forum in Washington, D.C., Sept. 24–26.

South Korea plans to ban the advertising of e-cigarettes.

The Ministry of Health and Welfare said on Monday that it would revise the National Health Promotion Act. The amendment will take effect six months after the bill is passed in the National Assembly.

The proposed revision prohibits not only promotions of e-cigarettes but any kind of marketing that could induce consumption of tobacco products.

Manufacturers will also be prohibited from providing free goods or services relating to nicotine products.

Commercial postings online about experiences using e-cigarettes or related products are also prohibited.

Violators will be fined between KRW3 million ($2,533) and KRW5 million.