Category: News This Week

  • Lawsuit over battery explosion

    Lawsuit over battery explosion

    A man from Cleveland, Ohio, USA, has filed a lawsuit after suffering second- and third-degree burns following the explosion of an e-cigarette battery in his pants pocket.

    “There was a flash, and he was on fire,” said attorney Tom Merriman, who is representing the plaintiff. “He literally drops to the ground, rolls, puts out the fire and realizes this vape battery has exploded.”

    The injury was about the size of a volleyball and required extensive treatment by burn specialists at MetroHealth Medical Center in Cleveland.

    According to the Associated Press, there have been about 200 fires and more than 130 injuries in the U.S. related to e-cigarettes since 2009.

    The battery was manufactured by LG Chem of South Korea. The lawsuit also targets a retailer.

     

     

  • ST buys Dunhill assets

    ST buys Dunhill assets

    Scandinavian Tobacco Group will acquire certain pipe tobacco trademarks and designs from Dunhill Tobacco Co. of London, a subsidiary of British American Tobacco.

    Included in the deal are premium pipe tobacco trademarks such as Early Morning Pipe, Nightcap, Royal Yacht and Elizabethan Mixture that were previously sold under the Dunhill brand and carry a solid reputation as well as premium positioning.

    “We are very happy and proud to add these well-known pipe tobacco brands to our existing strong portfolio,” said Regis Broersma, senior vice president for Scandinavian Tobacco Group’s Smoking Tobacco & Accessories division.

    “They will enhance our offering to our consumers–and we look forward to protect and explore the full potential of the portfolio by leveraging our sales and marketing competencies.”

  • Walmart ups tobacco age

    Walmart ups tobacco age

    Walmart, the world’s largest retailer, has raised the minimum age for buying tobacco products to 21.

    The measure, which was announced in May and came into force on Monday, affects all Walmart and Sam’s Club locations. It covers all tobacco products, including e-cigarettes. The retailer also plans to discontinue the sale of fruit-flavored and dessert-flavored electronic nicotine-delivery systems.

    Earlier this year, the U.S. Food and Drug Administration (FDA) sent letters warning Walmart and other retailers about illegal tobacco sales to minors. According to the FDA, Walmart passed 94 percent of 2,400 compliance checks in 2018.

    The company said it was “not satisfied” in falling short of its goal of 100 percent compliance.

    “We unequivocally acknowledge that even a single sale of a tobacco product to a minor is one too many,” the company wrote in its response to the FDA, “and we take seriously our responsibilities in this regard.”

  • Foundation shunned

    Foundation shunned

    The Indian health ministry has asked state governments to avoid working with the Foundation for a Smoke-Free World (FSFW) because of its links to Philip Morris International (PMI).

    In a letter to the chief secretaries of all states, the health ministry said they should not partner with FSFW and should advise other departments and institutions in their region accordingly.

    Established in 2017, the FSFW focuses on eliminating cigarette use and works toward smoking cessation using new technologies and alternative products.

    PMI supports the FSFW with $80 million annually, which the World Health Organization (WHO) says presents a “clear conflict” of interest for the FSFW.

    The foundation, which is led by former WHO official Derek Yach, insists it operates independently.

  • Japan restricts smoking

    Japan restricts smoking

    Today, a new law in Japan goes into effect that will prohibit smoking in schools, hospitals and government offices but will allow these facilities to set up outdoor smoking areas.

    Those caught smoking who were previously warned by managers of these facilities could face fines of up to ¥300,000 ($2,700). Managers of these facilities who do not enforce this new law face fines of up to ¥500,000.

    On April 1, 2020, the smoking ban will be extended to restaurants and businesses.

  • Plain packaging in Singapore

    Plain packaging in Singapore

    Singapore will require tobacco companies to sell their products in plain standardized packaging featuring enlarged health warnings beginning July 1, 2020, reports The Straits Times citing the health ministry.

    The announcement follows an extensive review by the health ministry of local and international reports, research and evidence, and several rounds of public consultations.

    The new packaging law will apply to cigarettes, cigarillos, cigars, beedies, ang hoon and other roll-your-own tobacco products whereby the product and brand names will be allowed only in a standardized font style and color. The packaging will not permit the showing of logos, colors, images or other promotional material that is associated with the tobacco product brand.

    The graphic health warning will have to cover 75 percent of the tobacco product package, up from the current 50 percent.

    First-time violators of the new rules may face a fine of up to SGD10,000 ($7,390) and/or a prison term of up to six months.

    “The SP measure for tobacco products will, in conjunction with other tobacco control measures, contribute to achieving broader tobacco control aims such as discouraging nonsmokers from picking up smoking, encouraging smokers to quit, and encouraging Singaporeans to adopt a tobacco-free lifestyle, which will ultimately lead to reduced smoking prevalence,” the health ministry said in a statement.

     

     

  • Shenzhen restricts vaping

    Shenzhen restricts vaping

    Shenzhen has banned the use of e-cigarettes in nonsmoking places, reports China News Service.

    Lawmakers in the southeastern Chinese city decided to expand the definition of “smoking” to include the use e-cigarettes and heat-not-burn products.

    The new rule increases the types of non-smoking sites from seven to nine, including areas within five meters of the entrance to public transportation stations as well as outdoor waiting areas for public transport vehicles. It’s now also forbidden to smoke near the entrance to schools, parks, hospitals and scenic spots.

    To further protect minors, “tobacco” products cannot be sold within 50 meters of the gates to middle and elementary schools or activity centers.

    Shenzhen is the world’s leading manufacturer of the vapor hardware.

  • Marlboro most valuable

    Marlboro most valuable

    Marlboro is the world’s most valuable tobacco brand, with a value of $33.6 billion, according to the latest report by Brand Finance, an independent brand valuation consultancy.

    As cigarette use declines in developed markets, tobacco brands are racing to develop next-generation products to fuel growth. Marlboro has seen success with its IQOS tobacco heating system which uses sophisticated electronics to heat specially designed heated tobacco units up to 350 degrees Celsius, without combustion, fire, ash or smoke.

    Philip Morris International-owned Sampoerna brand moved up a notch in the index, with a brand value at $3.2 billion.

    The sole new entry into this year’s league table is British American Tobacco’s Grizzly moist snuff brand, with a value of $2.7 billion, making it the world’s ninth most valuable tobacco brand.

    “As smoking habits continue to evolve and we see more smokers opting for vapes or e-cigarettes, the tobacco brands have not seen drastic improvements in their brand values since last year,” said David Haigh, CEO of Brand Finance.

    “There is now such a huge variety of alternative products that mean less smokers are purchasing packs of cigarettes and instead buying e-cigarettes which are widely available in local supermarkets, online, and in specialist vape shops.”

    Aside from calculating overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Along with the level of revenues, brand strength is a crucial driver of brand value.

    The strongest brand in the sector belongs to U.S. brand L&M with a Brand Strength Index score of 77.40 out of 100 and a corresponding AAA brand rating. In the brand strength stakes, L&M is followed by Marlboro (77.40 out of 100) and Chesterfield (74.66 out of 100).

    Every year, Brand Finance values 5,000 of the world’s biggest brands. The 10 most valuable tobacco brands are included in the Brand Finance Tobacco 10 2019 ranking.

    Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

     

  • SWM opens new plant

    SWM opens new plant

    SWM International marked the completion of its recent move into a state-of-the-art facility in Prosperity, South Carolina, USA, with a grand opening celebration on June 26, 2019.

    Invited guests included community leaders, state business development authorities, and local business leaders, who joined SWM’s employees, SWM CEO Jeffrey Kramer, and members of the SWM board of directors, to note the occasion.

    The Prosperity location specializes in a unique printing process for SWM’s patented low-ignition propensity coating technology.

    The company previously operated a facility in nearby Newberry, South Carolina.

    The new facility has allowed SWM to expand and strengthen its local operations with the addition of production equipment, increasing its operating capacity.

    The company employs around 50 individuals at the Prosperity location.

    “SWM is a global manufacturing company that brings great jobs and exciting career opportunities to our local residents, actively participates in our community, and contributes to our local economy,” said Wayne Adams, Newberry County administrator.

    “They have been a part of our business community since 2007 and we are delighted to see the company settled into this great facility where they can continue to operate and grow here in Prosperity for many years to come.”

  • Merkel supports ad ban

    Merkel supports ad ban

    German Chancellor Angela Merkel has expressed support for a ban on tobacco advertising, according to a Xinhua News Agency report.

    “If it were up to me, we should ban the advertising of tobacco products,” she was quoted as saying during a question-and-answer session in the Bundestag, the German federal parliament.

    The German government had wanted to adopt an advertising ban for tobacco products on billboards and in cinemas from 2020, but the bill failed due to opposition from the CDU-CSU parliamentary group in the Bundestag.

    A recent poll conducted by the German opinion research institute Forsa found that 69 percent of Germans were in favor of a complete ban on tobacco advertising.