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Category: News This Week

  • PMI Calls for Lower Cigarette Taxes in Meeting With Australian Govt

    PMI Calls for Lower Cigarette Taxes in Meeting With Australian Govt

    Philip Morris used a closed-door Australian Senate hearing on illicit tobacco to argue that high excise taxes are driving consumers toward the black market and called for lower cigarette prices to restore legal sales. According to a released transcript, company representatives said taxes account for at least A$34 of a A$37.95 pack ($24.48 of $27.32), while illicit cigarettes can sell for as little as A$12 ($8.64), contributing to an illicit market estimated at 50–60% of total sales, or A$4–A$7 billion ($2.8–$5 billion).

    The company told lawmakers that narrowing the price gap between legal and illegal products could help shift consumers back into regulated channels, citing price, access, and enforcement as key drivers of illicit trade. The hearing, which was initially held in private, drew criticism from public health advocates who said it “ran counter to an international treaty Australia signed up to in the mid-2000s,” while government officials defended the decision to include industry input in the inquiry.

  • Belgian Health Minister Calls Tobacco Industry ‘Criminal’

    Belgian Health Minister Calls Tobacco Industry ‘Criminal’

    Belgian Health Minister Frank Vandenbroucke sharply criticized the tobacco industry, describing it as a “criminal” sector with “no future,” as he defended ongoing regulatory efforts despite setbacks from a recent court ruling. Speaking on national television, Vandenbroucke acknowledged that a Constitutional Court decision forced the government to reverse its ban on cigarette sales in supermarkets, undermining part of its strategy to reduce tobacco accessibility. He reiterated support for stricter measures, including a planned ban on flavored vaping products, and warned that such products are contributing to rising youth nicotine use.

    The minister said the ruling complicated efforts to limit tobacco sales points, even as smoking rates have declined in recent years. He emphasized that broader regulatory action, both nationally and at the European level, remains necessary to address changing consumption patterns, including increased vaping among younger age groups, while maintaining pressure on tobacco and nicotine manufacturers.

  • Court Upholds ATF’s Action on Calif. Tribe’s Cigarette Sales

    Court Upholds ATF’s Action on Calif. Tribe’s Cigarette Sales

    A U.S. appeals court has upheld federal regulators’ decision to place the Twenty-Nine Palms Band of Mission Indians on a noncompliance list over cigarette sales, ruling that the tribe’s remote transactions with retailers on other tribal lands qualify as off-reservation activity. The Ninth Circuit panel found that such sales fall under California’s state tax and licensing requirements, supporting enforcement actions by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

    The decision affirms the application of state-level tobacco regulations to certain intertribal sales conducted remotely, reinforcing regulatory oversight in cases where transactions extend beyond a tribe’s own territory.

  • Villiger Announces Schüpbach as New CEO

    Villiger Announces Schüpbach as New CEO

    Villiger Söhne Holding AG announced the appointment of Christoph Schüpbach as Chief Executive Officer of the Villiger Group as part of a planned leadership transition. Effective June 1, Schüpbach will succeed managing director Clemens Gütermann, who is set to retire in 2027 following a transition period. The company said its long-term strategy will remain unchanged, with continued focus on quality, innovation, and its family-owned structure.

    Schüpbach brings experience from leadership roles at Schleuniger Group and Regent Lighting, as well as earlier positions at Bystronic and ABB. Villiger, a Switzerland-based cigar and cigarillo manufacturer producing over one billion units annually, operates across multiple international markets with production facilities in Europe, Latin America, and Asia.

  • 22nd Century Reports $4.1M in Revenue as it Focuses on Future

    22nd Century Reports $4.1M in Revenue as it Focuses on Future

    22nd Century Group reported first-quarter 2026 revenue of $4.1 million, with a continued focus on expanding its reduced-nicotine VLN cigarette portfolio and distribution footprint. The company said it is gaining traction with adult smokers, with products now available in more than 2,000 stores across 20 states and targeting over 5,000 retail locations by the end of 2026.

    The company is positioning its proprietary low-nicotine technology as aligned with potential future FDA standards, while pursuing a broader product pipeline across cigarettes, filtered cigars and other formats. Despite ongoing net losses, 22nd Century said it is prioritizing distribution growth, regulatory engagement, and margin improvement, with plans to expand licensing opportunities and advance multiple PMTA submissions to support long-term growth.

  • AIR to Open Manufacturing Facility in Romania

    AIR to Open Manufacturing Facility in Romania

    AIR Limited announced plans to build a new 70,000-square-foot manufacturing facility in Romania, with operations expected to begin in the first quarter of 2027. The site, located near Bucharest, is projected to produce more than 4,000 tons of flavored shisha molasses annually and create over 150 jobs, expanding the company’s production capacity and supply chain flexibility amid global uncertainty.

    The investment supports AIR’s broader growth strategy as it strengthens its position in the global shisha and inhalation products market, where it reported approximately $400 million in revenue in 2025. The expansion comes ahead of the company’s planned public listing on Nasdaq, expected in 2026, and reflects continued demand growth across key Western markets, including the U.S. and Europe.

  • PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    Pakistan’s Federal Minister for Commerce Jam Kamal Khan met with a delegation from Philip Morris International to discuss challenges in the country’s tobacco sector, with a focus on illicit trade, regulatory gaps, and export potential. The delegation highlighted that an estimated 45–47 billion untaxed cigarettes are sold annually, contributing to revenue losses of around Rs350 billion ($1.3 billion) and creating competitive pressure on the formal sector. Discussions also addressed weaknesses in supply chain oversight, including tobacco leaf procurement and limited traceability, which enable informal manufacturing.

    Officials emphasized the need for stronger, coordinated enforcement across federal and provincial authorities, noting that existing regulations are often inconsistently applied. The role of the Pakistan Tobacco Board and broader policy challenges linked to IMF-related trade reforms were also reviewed, with both sides agreeing to continue collaboration on measures to improve compliance, strengthen monitoring systems, and support formal sector growth.

  • Ispire Revenue Down, But ‘Stabilized’ After Strategic Repositioning  

    Ispire Revenue Down, But ‘Stabilized’ After Strategic Repositioning  

    Ispire Technology reported third-quarter fiscal 2026 results showing signs of business stabilization as it pivots away from its legacy cannabis-related interests toward regulated nicotine products and technology-driven growth. Revenue totaled $18.7 million, down 28.6% year-over-year but reflecting a narrower sequential decline, while cash increased to $18 million. The company said it is targeting cash flow positivity in the second half of 2026, supported by reduced operating expenses and a strategic shift away from lower-margin cannabis segments.

    Ispire highlighted multiple growth drivers, including operational manufacturing in Malaysia offering tariff advantages, the launch of nicotine pouch supply, and upcoming vapor ODM partnerships. It said longer-term opportunities include age-gating technology and G-Mesh glass innovation, which the company said could position it to access multi-billion-dollar markets, including the U.S. flavored vape segment and global nicotine delivery technologies.

  • Vapes Thriving in Hong Kong Despite Ban

    Vapes Thriving in Hong Kong Despite Ban

    An investigation by Sing Tao Daily found that illicit online sales of e-cigarettes and heated tobacco products continue in Hong Kong despite a strengthened public-use ban that took effect last week. Reporters were able to purchase disposable vapes through social media channels, with sellers offering home delivery or convenience store pickup and showing little concern about enforcement. Prices for disposable devices were quoted at around HK$120 ($15.60), with digital payment options and delivery within days.

    Authorities said enforcement efforts have been stepped up through intelligence-led operations and increased patrols, but the report highlights the persistence of a well-established black market that has adapted to restrictions introduced in 2022. Analysts and policy observers noted that the latest ban may push usage further underground, complicating monitoring and enforcement as illegal supply channels remain widely accessible online.

  • Altria, Juul Seek Pause in Antitrust Case Pending Appeal

    Altria, Juul Seek Pause in Antitrust Case Pending Appeal

    Earlier this week, Altria and Juul asked a California federal court to pause an ongoing antitrust case while they appeal a class certification ruling to the Ninth Circuit. The lawsuit centers on Altria’s 2018 $12.8 billion investment in Juul, which plaintiffs allege reduced competition by prompting Altria to exit the e-cigarette market, leading to higher prices and fewer product options.

    The companies argue that the appeal raises significant legal questions around class definitions and applicable laws, and that continuing the case could result in unnecessary litigation if the ruling is altered. Plaintiffs have opposed the request, noting the case has been ongoing for more than six years, as both sides acknowledge the current trial schedule will need to be revised pending the appellate process.