Category: News This Week

Juul Labs is leaving the Vapor Technology Association (VTA), an advocacy group for the vapor and e-cigarette industry, because of the association’s lawsuit against the U.S. Food and Drug Administration (FDA).

“Yesterday, Juul [Labs] announced that it would not be renewing its membership with the Vapor Technology Association, citing the lawsuit that [the] VTA recently filed against [the] FDA and policy differences,” the group said in an email to its membership on Wednesday.

The lawsuit seeks to prevent the FDA from enforcing its new May 2020 deadline for manufacturers to submit a premarket tobacco product application for vapor products with nicotine. The group sued to delay the deadline, arguing that it could hurt smaller vapor companies.

The VTA said it was “surprised” by Juul Labs’ opposition to the filing, noting that the company’s designated VTA board member “participated in the VTA board meeting held to consider the lawsuit against [the] FDA but never objected.”

For every ringgit the Malaysian government collects in taxes on cigarettes, it expects to spend MYR4 ($0.96) on treatment for smoking-related diseases, reports The Sun Daily.

Deputy Health Minister Lee Boon Chye said revenue from the duty on tobacco products averaged only about MYR4 billion a year.

“However, the government expects to spend a total of MYR16 billion this year to treat people who have fallen ill as a result of their smoking habit,” Chye told reporters.

The sum of MYR16 billion will be shared between the government and the private sector.

The Philippine House of Representatives has approved a bill raising taxes on select tobacco products, reports ABS-CBN News.

House Bill 1026, which raises taxes on liquors, wines, beers, heated-tobacco products and vapor products, was approved with 184 lawmakers voting yes, two voting no and one abstention.

Under the bill, heated-tobacco products will be taxed PHP45 ($0.86) per pack of 20 units effective January 2020. This will go up to PHP50 by January 2021, PHP55 by January 2022 and PHP60 by January 2023. The tax rate will be increased by 5 percent every year thereafter.

Vapor products will be taxed by each cartridge, refill pod or container with liquids or gels. Nicotine salt will be taxed PHP35 per mL starting next year, which will be increased by PHP5 every year until 2023. The tax will be raised by 5 percent every year thereafter.

Tobacco deliveries in Zimbabwe are set to surpass last season’s record-breaking delivery of 252 million kgs as deliveries continue at the auction and contract floors, reports The Herald. A record 252 million kgs was delivered to the market during the 2018 marketing season.

“By day 102, farmers had delivered 251.3 million kgs of tobacco worth $507 million,” said Isheunesu Moyo, Tobacco Industry and Marketing Board communications manager. “This is an increase from the 249.6 million kgs worth $730 million that was delivered by growers during the same period last year.”

In general, the prices this year are lower by about 31 percent to those of last year at $2.92 per kg compared to $2.02 per kg.

The 2018/2019 season has been described by many farmers as a difficult one due to the late rains that affected production and quality of the crop in some areas. Farmers also complained of depressed prices this season compared to the previous prices.

The consumption of tobacco and tobacco-related products among Myanmar youths aged 15 and under has increased around threefold from 2001 to 2016, according to a workshop on the control against tobacco and tobacco-related products.

“According to the 2014 surveys, more than 43 percent of the male adults and more than eight percent of female adults are tobacco smokers,” said Myint Htwe, minister for health and sports.

“As the country sees increased tobacco consumption among the youths, the ministry will carry out a national campaign to educate young students about the dangers of cigarettes, alcohol, drugs and health life in cooperation with the ministry of education.”

Teenagers in England are less likely to smoke cigarettes than previous generations, with the number falling to its lowest rate on record, reports The Independent, citing a new survey.

National Health Service Digital questioned more than 13,000 pupils aged 11 to 15 across nearly 200 schools in England about their smoking, drinking and drug habits for a biennial poll. The figures showed that just 16 percent of participants said they had smoked a cigarette in their lifetime, down from 19 percent in 2016 and 49 percent in 1996.

However, 25 percent of students admitted to having used an e-cigarette at least once, the same as in 2016. Researchers stated that students who had smoked cigarettes were more likely to also have vaped than those who had not smoked.

A recent study published in JAMA Network Open suggests that court ordered anti-smoking ads sponsored by the tobacco industry reached only around 40 percent of adults and about half of all smokers in the U.S.

To assess the reach of these ads, researchers led by Sanjay Shete of the University of Texas MD Anderson Cancer Center in Houston surveyed a nationally representative sample of 3,484 adults between January and May 2018, during which time the ads were running.

Participants were asked whether they recalled seeing ads specifically mentioning that a federal court had ordered tobacco companies to make statements about the dangers of smoking cigarettes.

Only 40.6 percent of adults recalled seeing the advertisements. Exposure was even lower among certain ethnic and socioeconomic groups historically targeted by tobacco industry marketing.

Just 37 percent of people aged 18–34, about 35 percent of those with no more than a high school diploma and 38 percent of those with household income under $35,000 a year reported having seen any of the ads.

“Anti-smoking campaigns run by the U.S. Centers for Disease Control and Prevention or other government organizations in the past seem to have had a much greater reach,” Shete said. “It is possible that young people are no longer watching TV or reading newspapers and are getting their news on social media.”

In 2006, U.S. District Judge Gladys Kessler ruled in favor of the Department of Justice in a lawsuit against the tobacco industry, requiring cigarette companies to sponsor anti-smoking advertisements in major newspapers, on television, in retail displays, on cigarette packages and on their corporate websites.

The government of Bangladesh  is planning to restrict foreign direct investments (FDI) in the tobacco sector so that the supply of the harmful products can be curtailed, reports Financial Express citing government officials.

The National Tobacco Control Policy, which was recently sent to the ministries and departments concerned seeking opinions, states that controlling the supply chain is important alongside lowering the demand to contain tobacco consumption.

In 2018, Bangladesh received $3.61 billion in FDI, of which $1.47 billion came from Japan to acquire local Akij Group’s tobacco business.

Foreign investment is substantial in several tobacco companies in Bangladesh. British American Tobacco is the top market player.

The draft policy noted that to contain the tobacco supply in the market, steps will be taken to encourage tobacco farmers to cultivate other crops.

Residents and government officials in areas hosting the 2020 Tokyo Olympic events are concerned whether the blanket smoking ban planned at the competition venues will be properly observed, reports Japan Times.

During the events, the Yokohama Municipal Government plans to deploy staff members around competition venues to raise awareness of the nonsmoking rule. But an official said, “It will be difficult for the municipality alone to implement measures.”

The government of the western Tokyo suburb of Chofu is also considering placing staffers around Ajinomoto Stadium where soccer and rugby matches will be held.

“There’s no concept of outdoor smoking bans in foreign countries,” a Chofu official said. “We must hurry to raise awareness among foreigners.”

Juul Labs has raised $325 million in an equity and debt offering as it looks to expand its global reach, reports Yahoo Finance.

Juul is facing intense regulatory scrutiny in its home market.

In a regulatory filing on Monday, the company did not break out the ratio of equity and debt offered but said the funds would not be used for mergers, acquisitions, exchange offers, or to pay executives, promoters or directors.

The company recently launched its popular USB flash drive-shaped products across Europe, South Korea, the Philippines and Indonesia and has plans to expand into other markets.

The offering will also give Juul Labs the capital it needs to comply with a U.S. federal order in July that stipulates that e-cigarette companies submit applications to the U.S. Food and Drug Administration to remain in the market within 10 months rather than an earlier deadline of 2022.