Category: News This Week

  • Zim Growers Warned Against ‘Nesting’

    Zim Growers Warned Against ‘Nesting’

    Photo: Taco Tuinstra

    Farmers caught “nesting” their bales—sneaking nontobacco-related material (NTRM) into tobacco bales to increase bale weight or concealing bad tobacco under good-quality leaf to deceive buyers—can expect serious repercussions, reports The Herald, citing a social media post by Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) warned.

    Cases of tobacco nesting have been increasing, according to the regulator.

    “Warning! Tobacco nesting is a serious crime, desist from it. This can result in arrest, hefty fines, criminal prosecution and grower deactivation,” the TIMB posted on X (formerly Twitter).

    Nested tobacco is forfeited to the TIMB, and grower numbers required to participate in sales are blocked. Offending farmers must pay a fine of $30 per violation.

    “As TIMB, we are conducting training and awareness campaigns to discourage the sale of nested tobacco. Nesting is an offense that incurs a fine and results in the loss of tobacco,” said Chelesani Tsarwe, TIMB public affairs officer.

    The TIMB is also working to curb side marketing and to create a transporter compliance framework.

     “In this regard, losses are minimized, thereby increasing farmer profitability and viability for improved livelihoods by 2025,” said Blessing Dhokotera, TIMB head of operations. “The framework seeks to counter criminal activities like side marketing, tobacco bale theft, bale swapping and forgery on stop order launching.”

    The TIMB also urged farmers to avoid plastic materials in packing or storing tobacco as they contaminate the tobacco leaf.

  • KT&G Expands in Indonesia

    KT&G Expands in Indonesia

    Photo: KT&G

    KT&G CEO Kyung-man Bang participated in groundbreaking ceremonies for the South Korean tobacco company’s second and third factories in Surabaya, Indonesia, on April 26.

    According to a company press release, Bang also visited KT&G’s Asia-Pacific headquarters in Jakarta during his trip, which was his first visit to an overseas business operation since assuming the top position at KT&G.

    Spanning approximately 190,000 square meters, KT&G’s second and third factories in Indonesia are set to commence operations in 2026. The combined production capacity of the factories is projected to reach 21 billion cigarette sticks per year. KT&G plans to make Indonesia its largest global production base, with an annual production capacity (including existing factory capacity) of 35 billion cigarettes, and focus on global market expansion.

    “We have been committed to delivering and accelerating our mid-[term] to long-term vision of becoming a global top-tier company by executing vigorous investment strategies and leading bold innovations,” said Bang during the ceremony.

    “Indonesia serves as our primary global export hub, driving the expansion of our export business in Asia-Pacific and the Middle East markets. We will continue to develop the global production hub in Indonesia as a core growth engine for the company,” Bang added.

    Last October, KT&G broke ground for a factory in Almaty Province, Kazakhstan, designed for exports across the Eurasian region. The following month, the company announced an expansion of its next-generation product capacity at its Daejeon factory.

    To accelerate its global expansion, KT&G recently separated its Asia-Pacific headquarters and Eurasia headquarters from the company, establishing them into separate business entities.

  • Khyber Pakhtunkhwa Mulls Steep Tax Hike

    Khyber Pakhtunkhwa Mulls Steep Tax Hike

    Photo: Taco Tuinstra

    Pakistan’s Khyber Pakhtunkhwa government is mulling an increase in the local tobacco tax (cess) by 400 percent, reports Pakistan Today. The increase is expected to generate revenue of more than PKR2 billion ($7.2 million) annually.

    A meeting between Muzammil Aslam, advisor to the chief minister of finance; Aqibullah Khan, provincial minister for irrigation; Akmal Khatak, director general of excise; and a representative delegation of tobacco growers approved a proposal to increase the tobacco development cess by PKR50 per kilogram for Viginia tobacco, PKR30 per kilogram for white leaf rustica tobacco and PKR20 per kilogram for niswar tobacco.

    The tobacco development cess is not equal to the actual price of tobacco, the meeting was informed. Various proposals are under consideration to increase the cess. An action plan for exports is being prepared to increase income from tobacco exports, according to Aslam.

    The provincial government currently earns PKR500 million annually from tobacco taxes.

  • Charlotte’s Web to Elect New Directors

    Charlotte’s Web to Elect New Directors

    Photo: Mariakray

    Charlotte’s Web Holdings will elect new directors at its annual meeting on June 13. The company has proposed reducing the number of directors from seven to six.

    The following directors’ terms on the company’s board of directors will expire effective June 13, 2024, and they will not stand for reelection:

    • John D. Held, who joined the board in May 2018 and serves as chairperson of the board and chair of the corporate governance and nominating committee;
    • Thomas Lardieri, who joined the board in August 2022 and serves on the corporate governance and nominating committee and as chair of the audit committee;
    • Alicia Morga, who joined the board in December 2022 and serves on the audit committee and the compensation committee.

    “Charlotte’s Web is grateful for the valuable contributions and guidance that each of these directors have provided during their time on the board. Their expertise and dedication have been instrumental in navigating through critical phases of our transformation in a challenging unregulated category,” said Charlotte’s Web CEO William Morachnick in a statement.

    The board has proposed to nominate the following current directors for reelection:

    • Jonathan Atwood, group head of business communications for BAT;
    • Matthew E. McCarthy (independent), former CEO and board member of Ben & Jerry’s Homemade and senior executive at Unilever;
    • Angela McElwee (independent), former president and CEO and board member of Gaia Herbs;
    • William Morachnick, Charlotte’s Web CEO and former president at Santa Fe Reynolds Tobacco International in Zurich, Switzerland.

    In addition, the board has proposed to nominate Jared Stanley and Maureen Usifer as new appointments to the board.

  • Florida Passes First Disposables Registry

    Florida Passes First Disposables Registry

    Credit: Ajax9

    Florida’s governor, Ron DeSantis, has signed legislation intended to crack down on the sale of unauthorized vapes that the state deems attractive to children.

    The new law (HB 1007), however, only targets disposable vaping products not authorized by the U.S. Food and Drug Administration. The rules will be enforced beginning Oct. 1.

    Unlike other state registry lists, Florida is the first state in the nation to include a carve-out for refillable pod systems and open-system vaping products, as well as bottled e-liquids.

    Florida Smoke Free Association president and vape shop owner Nick Orlando was the driving force behind getting the open system exemption.

    In its original form, the bill would have prohibited sales of any vape products that had not yet received FDA approval, according to media reports.

    The law now directs the state’s Department of Legal Affairs to develop and maintain a directory listing all single-use nicotine vapes it deems attractive to minors. The department must make the list publicly available on Jan. 1, 2025, and regularly update it.

    Once a product is added to the list, retailers and wholesalers in Florida have 60 days to sell or remove it from their inventory. Any products left in circulation will be subject to seizure and destruction.

    Beginning March 1, 2025, manufacturers that sell prohibited products in the state will face a $1,000 daily fine for each such product until it’s removed from the market. This stricture will also apply to retailers, wholesalers and distributors that ship products into Florida.

    Any person who sells a nicotine product, including vapes, to someone under 21 for a third or subsequent time will face a third-degree felony charge, punishable by up to $5,000 in fines and five years in prison.

  • U.S. Menthol Decision Delayed Again

    U.S. Menthol Decision Delayed Again

    Photo: Alicia

    The Biden administration has again delayed its decision on whether to ban menthol cigarettes in the United States.

    “This rule has garnered historic attention, and the public comment period has yielded an immense amount of feedback, including from various elements of the civil rights and criminal justice movement,” said Secretary of Health and Human Services Xavier Becerra in a statement. “It’s clear that there are still more conversations to have, and that will take significantly more time.”

    Government officials declined to provide a new target date for the measure, saying they needed more time to hear from outside groups, especially civil rights activists.

    Menthols account for more than a third of all cigarettes sold in the U.S. each year and are predominantly used by Black and Latino smokers.

    According to The Wall Street Journal, lawmakers have been weighing the potential public health benefits of banning minty smokes against the political risk of angering Black voters in an election year.

    A November poll commissioned by Altria Group found that 54 percent of “core” Biden voters—defined as minority voters or non-conservative white voters under age 45—oppose the proposed ban.

    Anti-tobacco groups were aghast by the latest delay. “It is unacceptable and deeply harmful to public health that the Biden administration today has once again delayed issuing the final rule to prohibit menthol cigarettes,” said Yolonda C. Richardson, president and CEO of the Campaign for Tobacco-Free Kids, in a statement. “This decision prioritizes politics over lives, especially Black lives.” 

    The FDA formally proposed the ban in April 2022, saying there were 18.5 million smokers who preferred menthol brands in the United States.

    Anti-smoking activists say the cooling sensation of the menthol flavor makes it easier to start smoking and harder to quit. The FDA estimates that the menthol ban could reduce smoking by 15 percent in 40 years. Studies project that as many as 650,000 smoking-related deaths could be avoided.

    Researchers looking at similar moves in other nations estimated that a ban could result in nearly a quarter of smokers quitting, with the rest moving to nonmenthol cigarettes or managing to keep smoking menthols.

    In recent months, dozens of groups have met with administration officials to discuss the proposal. Among other concerns, opponents of the measure cite job losses and aggressive police targeting of Black smokers. An estimated 85 percent of U.S. Black smokers prefer menthol brands, according to market data. The FDA insists that enforcement would be against manufacturers rather than consumers.

    Critics, however, contend that tobacco companies are financing and fueling those fears. Richardson said she was disturbed to see the administration “parrot the false claims of the tobacco industry about support from the civil rights community.”

    “The fact is the menthol rule is overwhelmingly supported by Black civil rights, faith, public health, medical and other organizations,” she said.

    While other jurisdictions, including the European Union, have banned menthol cigarettes, the impact of such a measure would likely be greater in the U.S. because of their large market share. Reynolds American Inc. (RAI), which makes the market-leading Newport brand, earns about $7 billion from menthol cigarette sales a year, research by Goldman Sachs shows.

    Convenience store, gas station and wholesaler groups predict a loss of $34 billion in sales from menthol cigarettes and snacks and drinks purchased by customers. Some House Republicans have sent letters to the administration warning that the ban could have a disastrous effect on small businesses and that it could encourage cigarette smuggling that would benefit terrorist groups.

    Altria spokesman David Sutton said the company was also concerned about illicit sales as well as lost tax revenue and jobs.

    A study on the impact of a state flavor ban in California suggests the measure spawned a large market for illegal products there.

  • Pearce to Lead Cigar Association of America

    Pearce to Lead Cigar Association of America

    Photo: GIS

    Scott Pearce will leave his position as executive director of the Premium Cigar Association (PCA) and join the Cigar Association of America (CAA) as that organization’s new president.

    “Scott is uniquely positioned to grow and bring innovative lobbying and advocacy to CAA. His depth of experience working in industry and trade groups and his most recent experience with PCA provides CAA a leader who is prepared to take on the difficult issues our association faces.” said Chris Howard, CAA board member and chair of CAA’s committee that sought out its new president.

    Pearce has over 20 years of experience working in associations with a strong track record of driving growth and implementing innovative strategies.

    His last day with the PCA, which Pearce led since 2018, will be May 24, 2024. In the interim, Deputy Executive Director Joshua Habursky will fill the vacancy and oversee operations in coordination with PCA’s executive committee and board of directors.

     “We are grateful for Scott’s time at PCA that saw transformative positive changes for the association from advocacy to trade show and especially grateful that he was able to work with us to hire an incredible team that will have a lasting legacy even after he leaves the organization,” said PCA Board President Scott Regina in a statement.

     “With change comes opportunity,” said Habursky. “Scott was part of a team of staff and a board of directors that resurrected an organization that faced tough times during the pandemic. The association is in a strong position and will continue to be the advocacy leader for premium cigars, host its world-class trade show, and grow all facets of its membership with our existing team.”

  • Vape Companies Urged to Implement Graphic Warnings

    Vape Companies Urged to Implement Graphic Warnings

    Image: natatravel

    The Philippines’s Department of Health (DOH) is urging businesses, distributors and importers to start printing graphic health warnings (GHW) on vaporized products, reports Tribune.

    The first set of GHW templates for vape products is set to take effect on May 12.

    Under Republic Act No. 11900, also known as the Vape Law,

    Operators who fail to comply with the new rules risk fines of between PHP2 million and PHP5 million and imprisonment of up to six years.

    Manufacturers, importers, distributors and sellers may also face revocation or cancellation of permits and licenses as well as immediate recall, ban, or confiscation of products at the direction of the Bureau of Internal Revenue.

    In addition, foreign individuals found in violation risk deportation.

  • Weight-Loss Drugs Lower Nicotine Cravings

    Weight-Loss Drugs Lower Nicotine Cravings

    Photo: Semi

    GLP-1 weight-loss drugs, such as Ozempic, Wegovy and Zepbound, suppress not only appetite but also nicotine cravings, reports Quartz, citing a new report from Morgan Stanley.

    The investment bank asked 300 GLP-1 users about their consumption habits while taking the medication.

    While 40 percent of survey respondents said they smoked cigarettes at least weekly before starting a GLP-1 treatment, that number fell to 24 percent after they started the treatment. Meanwhile, weekly e-cigarette usage dropped from 30 percent of respondents to 16 percent after they started taking a GLP-1.

    Anecdotal evidence from patients and healthcare providers suggests GLP-1s can help users curb their addictions to tobacco.

    While research has yet to prove a causal link between the two, clinical trials are currently underway to better understand the effects of GLP-1s on tobacco consumption.

    Demand for GLP-1 drugs has grown rapidly recently. Morgan Stanley expects the global market to reach $105 billion by 2030. It projects that the weight-loss medications will be adopted by about 31.5 million U.S. people, or about 9 percent of the nation’s population, by 2035.

  • Suppliers Updated on New U.K. Landscape

    Suppliers Updated on New U.K. Landscape

    John Dunne (Photo: UKVIA)

    John Dunne, director general of the U.K. Vaping Industry Association (UKVIA), traveled to China to educate vape companies on Britain’s changing regulatory landscape.

    The U.K. will ban disposable e-cigarettes from April next year, and the Tobacco and Vapes Bill, which is currently working its way through Parliament, seeks to give ministers unprecedented powers to ban flavors and decide how vapes are packaged and sold.

    Speaking at the headquarters of the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce (ECCC), Dunne shared his expert knowledge to conduct on-site compliance training to some of the world’s leading vape companies, including Elf Bar, SKE, ELUX, HQD, Hangsen, Greensound, Aspire, ICCPP, RELX, ALD, Uwell and Zinwi.

    Describing the U.K. regulatory landscape as “complex and changeable,” Dunne said issues such as the protection of minors, battery recycling and environmental protection were high on the agenda of politicians, regulators and the general public.

    “It is absolutely vital that all companies operating in the U.K. are fully compliant with all local laws and work at all times to show the industry in the best possible light,” he said in a statement.

    Dunne said the UKVIA would continue to work with the ECCC to help members comply with current requirements, prepare for future regulatory change and to foster global cooperation to promote the development and prosperity of the global vaping industry.