Category: News This Week

Altria Reaffirms Guidance

Photo: Maurice Norbert
Altria Group reported net revenues of $5.58 billion for the first quarter of 2024, down 2.5 percent from the comparable 2023 period. Revenues net of excise taxes declined 1 percent to $4.72 billion. The company reaffirmed its 2024 full-year adjusted diluted earnings-per-share guidance range of $5.05 to $5.17.
Altria attributed the income declines to lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment and the “all other” category.
Marlboro’s retail share of the total cigarette category was 42 percent, unchanged from the prior year. The brand’s share of the premium segment was 59.3 percent, an increase of 0.7 share points versus the prior-year period.
The company shipped 1 million Njoy devices and 10.9 million units of Njoy consumables during the quarter. Njoy held a 4.3 percent share of the U.S. mini-outlet and convenience channel segment.
“We made meaningful progress in pursuit of our vision, and our highly profitable traditional tobacco businesses continued to perform well in a challenging environment,” said Altria CEO Billy Gifford in a statement, referring to the company’s ambition “to responsibly lead the transition of adult smokers to a smoke-free future.”
“In spite of the absence of an effective regulatory environment, we saw continued early momentum from Njoy and believe our businesses are on track to deliver against full-year plans.
“We also demonstrated our continued commitment to maximizing the return on our investments and delivering strong shareholder returns through the sale of a portion of our investment in ABI and the subsequent expansion of our share repurchase program in March,” Gifford said, referring to Altria Group’s March sale of 35 million ordinary shares of Anheuser-Busch InBev.
April 25, 2024
U.K. Misleading Public

Mora Gilchrist (Photo: PMI)
Philip Morris International has accused the U.K. Department of Health of spreading misinformation about heated-tobacco products after a social media post warning that “all forms of tobacco are harmful,” reports The Grocer.
A tweet posted by the department in a thread of “myths” about vaping and tobacco contained false and misleading statements and risks driving consumers back to cigarettes or dissuading current smokers from making the switch to alternatives, according to the multinational.
“What hope do adult smokers have when seeking out accurate information on smoke-free products if it’s the government that’s spreading misinformation?” said PMI Chief Communications Officer Moira Gilchrist.
“All forms of tobacco are harmful, and there is no evidence that heated-tobacco products are effective for helping people to quit smoking,” the tweet stated.
“Laboratory studies show clear evidence of toxicity from heated-tobacco products. Unlike vapes, there is no evidence they are effective for helping people to quit smoking,” the post continues, citing a 2017 report by the Committee on Toxicity.
According to Gilchrist, such statements “distort the scientific evidence base” and “seriously misleads the public.”
While acknowledging that heated tobaccos are not risk-free, Gilchrist said it is misleading to imply that all forms of tobacco are equally harmful.
A Public Health England report in 2018 said that available evidence suggested that heated-tobacco products “may be considerably less harmful than tobacco cigarettes” but “more harmful than e-cigarettes.”
The Grocer
April 25, 2024
KT&G Sued

Photo: Ian O’Hanlon
A former KT&G Corp researcher has filed a lawsuit against his former employer claiming that he was insufficiently compensated for inventing “the world’s first e-cigarette” while working at the firm, reports the Yonhap News Agency.
Kwak Dae-geun demands KRW2.8 trillion ($2 billion), reportedly the highest amount ever claimed by an individual in a South Korean legal action
According to the suit, Kwak joined the Korea Ginseng and Tobacco Research Institute in 1991 and began developing a tobacco-heating product in 2005.
In July that year, he registered his first patent for a prototype. In December 2006, he registered another patent for an upgraded version with a controllable heater.
Subsequently, he developed a full e-cigarette set, and registered a patent for part of the device in 2007 before leaving the company in 2010 as part of corporate restructuring.
After Kwak’s departure, KT&G allegedly registered patents for some of his technologies without recognizing his contributions.
In addition to his claim about compensation, Kwak contends that a prominent rival global tobacco firm was able to commercialize its internal heating-based e-cigarette model in South Korea in 2017 due to the absence of overseas patents.
Kwak’s requested damages reflects his portion of the revenue KT&G is expected to generate through Kwak’s patented technology during the 20-year patent term, as well as what KT&G would have earned if it had registered patents overseas.
KT&G counters that it has properly rewarded Kwan in the form of offering a technology advisory deal, and that Kwak had agreed not to raise any legal issues.
The firm also said the technologies invented by Kwak are not currently used in the products it is selling.
The e-cigarettes being sold by the global firm in question, meanwhile, did not involve technologies patented by Kwak, according to KT&G, which also noted that the rival firm had already commercialized early-model heated tobacco-type products in 1998.
April 24, 2024
Sampoerna Profit Jumps by One Third

Photo: Taco Tuinstra
Net profit of Sampoerna grew 28 percent to IDR8.1 trillion ($501.11 million) in 2023. With shipments of 83.4 billion cigarettes, the company remained the undisputed leader in Indonesia, claiming a market share of 28.6 percent.
“2023 marked a year of return to robust profitable growth, with Sampoerna reaching significant milestones for advancing scientifically substantiated smoke-free products, increasing its investment and employment in Indonesia, and generating strong multiplier effects, in line with the country’s priority to enhance down-streaming.” said Sampoerna President Director Vassilis Gkatzelis in a statement.
Sampoerna’s performance was driven in part by the recovery of the hand-rolled kretek cigarette (SKT) segment in Indonesia. After declining for many years, its share rose from 17 percent of overall tobacco sales in 2019 to 28 percent in 2023, boosted by the government’s favorable tax treatment of this labor-intensive sector.
In early 2024, Sampoerna added SKT production facilities and third-party operators, creating employment for tens of thousands of new workers.
The company has also been developing its smoke-free portfolio in Indonesia. In 2023, the company inaugurated a dedicated factory in Karawang, near Jakarta, which supplies both the domestic market and customers in the Asia Pacific region.
In the Jakarta urban area, the company’s IQOS tobacco-heating product reached a market share of 3.5 percent in the fourth quarter of 2023, an increase of 2 points from the fourth quarter of 2022.
To date, Sampoerna has invested $300 million in smoke-free products in Indonesia.
Gkatzelis will leave Sampoerna in May and join Philip Morris International’s executive leadership team as president of the East Asia, Australia and PMI duty-free region.
His successor at Sampoerna is Ivan Cahyadi.
April 24, 2024
EU Urged to Adopt Science-Based Strategy

Photo: yavdat
Consumer representatives are urging European policymakers to adopt science-based tobacco harm reduction strategies as EU health ministers gather in Brussels for a two-day meeting to discuss Europe’s Beating Cancer Plan, among other topics.
The Beating Cancer Plan presents several legislative initiatives to address cancer risk factors, including measures to reduce tobacco and alcohol consumption and improve healthy diets.
“This meeting should mark the beginning of driving the EU towards a smoke-free future,” said Michael Landl, director of the World Vapers Alliance, in a statement. “Health ministers should take inspiration from Sweden, poised to become the first smoke-free country in the world, thanks largely to the adoption of safer and less harmful alternatives. It remains vital that the EU follow their example and enforce sensible regulation.”
However, according to Landl, the EU Commission has thus far been “deaf” to the science of tobacco policies. “It is crystal clear that safer nicotine alternatives such as vaping or pouches are significantly less harmful than smoking and effectively aid in smoking cessation,” he said.
“EU health ministers have a critical opportunity this week to advocate for sensible regulations that could prevent 700,000 unnecessary deaths annually due to smoking. The Beating Cancer Plan acknowledges that vaping can help smokers quit. Politicians must act accordingly. ”
April 24, 2024
Social Media Linked to Youth Tobacco Use

Photo: Alessandro Biascioli
Frequent social media use is linked to an increased risk of youth using any tobacco product—including e-cigarettes—for the first time after one year, according to a new study led by Boston University School of Public Health (BUSPH) researchers.
Published in Addictive Behaviors, the study found that youth with no prior tobacco use who used social media daily were 67 percent more likely to begin smoking after one year, compared to youth who used these platforms less frequently. The results also showed that youth who actively engaged with tobacco marketing by liking or following content by major tobacco brands developed an even greater risk of first-time tobacco use.
“Our results add to a growing body of literature documenting the harms of social media use for this age group, as well as how commercial interests such as the tobacco industry are targeting kids on these platforms,” said study lead and corresponding author Lynsie Ranker, assistant professor of community health sciences at BUSPH, in a statement.
While the U.S. Food and Drug Administration expanded its regulatory authority over the marketing of new and emerging tobacco products in 2016, restrictions on tobacco advertising on social media is largely at the discretion of the social media companies, rather than government officials. The researchers also note that these restrictions primarily apply to paid promotional content with the platforms, leaving loopholes for branded accounts and marketers’ collaborations with influencers.
“Based on our research, social media platforms lack self-regulation,” says study coauthor Jessica Fetterman, assistant professor of medicine at Boston University Chobanian & Avedisian School of Medicine. “They have their own policies against tobacco marketing, yet many leading tobacco companies are able to maintain their own branded accounts to market their products. The government must step forward to regulate tobacco marketing on social media, just as they have done for other forms of media such as TV and print ads.”
While U.S. cigarette smoking rates have declined substantially among US youth since the mid-1990s, an estimated 10 percent of middle and high school students—2.8 million people—currently use at least one tobacco product, and many also engage in dual use, particularly with e-cigarettes.
April 24, 2024
Kenya to Consult on New Health Warnings

Photo: 9nong
Kenya’s Ministry of Health has invited the public to comment on 13 proposed large graphic warnings for tobacco products, reports The Star.
If the changes are approved, graphic warning depicting impotence, cancerous growths and sick fetuses will also be printed on new tobacco and nicotine products sold in Kenya. Currently, only cigarette packets are required to display such warnings. The law requires a combined picture and text health warning to occupy at least 30 percent of the front and 50 percent of the back of smoked tobacco products. Among the proposed labels is also a message indicating that nicotine pouches are not a safe alternative.
“These warnings are very important because they speak even to those who can’t read and they attract attention. They also scare people and pass information more clearly and immediately compared to text,” said Joel Gitali, head of the Kenya Tobacco Control Alliance.
Health warnings were introduced in Kenya as part of the 2007 Tobacco Control Act, which came into force in July 2008 and included requirements for 13 rotating text-only health warnings in Kiswahili and English.
In 2014, the government introduced 15 new images for smoked and smokeless tobacco packages. The regulations were to be implemented in June 2015 but were delayed due to a legal challenge by cigarette manufacturers, who lost the case at the Supreme Court. The images were introduced beginning September 2016.
The 2014 regulations require tobacco manufacturers to rotate the picture and text warnings in a 12-month period.
However, the law does not state how frequently the health minister must update the warnings. The World Health Organization advises governments to change tobacco health warnings every 12 to 36 months.
April 23, 2024
New President at PMFCT

Photo: motortion
Gijs Lambert Johan de Best will take over as president of Philip Morris Fortune Tobacco Co. (PMFTC) in the Philippines, succeeding Denis Gorkun who has been the company’s president since September 2019, reports The Philippine Star.
Gorkun will step down at the end of this month, concluding a nearly 30-year career at PMI.
De Best is currently Philip Morris International’s vice president strategy and program delivery for South and Southeast Asia, the Commonwealth of Independent States and Middle East and Africa.
After starting as a financial analyst at PMI’s Netherlands office in August 2004, he held managerial positions in Belgium, Spain, Switzerland, Germany, eventually becoming director of business development during his time in Hong Kong.
PMFTC is a partnership between PMI and LT Group’s Fortune Tobacco Corp., which owns 49.6 percent of PMFTC. In 2023, the firm held 55.2 percent share of the Philippines’ tobacco market.
PMFTC’s net income declined 26 percent last year to PHP11.38 billion ($198.05 million). LT Group attributed the drop to an industry-wide price increase in the first quarter of last year, which depressed sales.
Rising illicit cigarette trade incidence and trade inventory movements also contributed to the lower income, according to LT Group.
April 23, 2024
Civil Money Penalties for 22 Elfbar Sellers
Credit: Jeff McCollough
The U.S. Food and Drug Administration today announced the issuance of complaints for civil money penalties (CMPs) against 20 brick-and-mortar retailers and two online retailers for selling unauthorized e-cigarettes, including Elf Bar, a popular youth-appealing brand.
The regulatory agency previously issued warning letters to these retailers for selling unauthorized tobacco products. However, according to an FDA release, follow-up inspections revealed that the retailers had failed to correct the violations.
Accordingly, the agency is now seeking a CMP of approximately $20,000 from each retailer.
The approximately $20,000 CMP sought from each retailer is consistent with similar CMPs sought against retailers for the sale of unauthorized Elf Bar products over the last few months, including in Sept., Nov., Dec. and Feb.
The retailers can pay the penalty, enter into a settlement agreement, request an extension to respond, or request a hearing. Retailers that do not take action within 30 days after receiving a complaint risk a default order imposing the full penalty amount.
April 23, 2024
Brazil Agency Upholds Vaping Sales Ban

Image: VlaDee/pavlofox
The board of directors for the Brazilian Health Surveillance Agency (Anvisa) voted unanimously on April 19 to maintain a ban on the sale of e-cigarettes and other vaping products, reports Brazil Reports.
Manufacturing, selling, importing and advertising vapes has been banned in the country since 2009, but e-cigarettes remain widely available in small shops and online stores across Brazil.
According the Brazilian Institute of Geography and Statistics, 16.8 percent of students aged 13 to 17 said they had tried vaping at least once in their lives. An estimate 4 million Brazilians vape, according to Covitel, which carries out health-related surveys.
Anvisa’s vote follows a public consultation on the measure. Anvisa justified its position based on the rise in underage vaping in countries that permit e-cigarettes, the addictive properties of nicotine and the lack of long-term studies on the effects of vaping on health, along with the potential impact of allowing vaping on Brazil’s overall tobacco control policies, which have been praised internationally.
In July 2019, Brazil became the second country to fully implement all measures set out by the World Health Organization with the aim of reducing tobacco consumption and protecting people from chronic non-communicable diseases.
In voting to uphold the ban, Anvisa President Antônio Barra Torres cited a December 2023 World Health Organization publication recommending government prohibited electronic cigarettes based on current evidence.
The Brazilian Tobacco Industry Association, ABIFUMO, said that banning vapes is “ignoring the learnings of more than 80 countries that have already authorized their sale with clear rules for control, restriction of points of sale and taxation of manufacturers.”
Philip Morris Brasil said that “maintaining the ban on vapes is out of step with the uncontrolled growth of the illicit market, proven to be accessible to around 4 million Brazilians who use a product daily without any control of quality.”
Meanwhile, the Senate is debating a bill that would authorize the production, import, export and consumption of e-cigarettes in Brazil. The proposal is still in its early stages and does not have a date for voting.

April 23, 2024