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Category: News This Week

  • Scandinavian Shuffles Cigar Lineups Between Divisions

    Scandinavian Shuffles Cigar Lineups Between Divisions

    Effective February 2, Scandinavian Tobacco Group (STG) will reshuffle its U.S. cigar sales structure, transferring five brands between its two internal sales divisions, General Cigar Co. and Forged Cigar Co., according to Halfwheel. Most notably, the non-Cuban Cohiba brand will move from General to Forged, along with Punch and Havana Honeys, as STG seeks to better balance the two divisions. Partagas and Room101 will switch to General.

    The restructuring is part of STG’s Focus2030 strategy and is designed to make General and Forged more equal in scale, despite their unusual internal competition model in which sales teams owned by the same company compete directly for the same retail accounts. STG also plans to expand the Forged sales force and has shifted several lower-volume brands—Brioso, Honduran Bundles, and La Estrella Cubana—to its Meier & Dutch wholesale division, with Los Statos Deluxe, Room101 Farce, and Sancho Panza removed from active price lists, but with no other updates given.

  • Altria to Host Q4, FY25 Webcast January 29

    Altria to Host Q4, FY25 Webcast January 29

    Altria Group, Inc. will host a live audio webcast on January 29 at 9 a.m. EST to discuss its 2025 fourth-quarter and full-year business results. Altria will issue a press release containing its business results approximately two hours prior. The webcast can be accessed at altria.com.

    During the webcast, CEO Billy Gifford and CFO Sal Mancuso will discuss the company’s results and answer questions from the investment community and news media.

    The webcast will be in a listen-only mode. Pre-event registration is necessary; directions are posted at www.altria.com/webcasts. An archived copy of the webcast will be available on altria.com.

  • BAT to Shut Down Only South African Plant

    BAT to Shut Down Only South African Plant

    BAT South Africa (BATSA) announced it will cease local production of factory-manufactured cigarettes and close its sole manufacturing facility in Heidelberg, Gauteng, by the end of 2026, citing the overwhelming growth of illicit cigarettes in the market. The company estimates that illegal products now account for about 75% of cigarette sales in South Africa, rendering local manufacturing commercially unviable. The plant is currently operating at just 35% of capacity due to sustained volume losses linked to the illicit trade.

    “We have tried everything to ensure we don’t have to close this facility, which has been a part of the Heidelberg community since 1975, including implementing various efficiency initiatives over the years,” said Johnny Moloto, head of corporate and regulatory affairs at BAT Sub-Saharan Africa.  “But when three-quarters of your market is illicit, there’s a limit to what any company can do. We’ve reached that limit.”

    BATSA said the closure will directly affect approximately 230 employees and their families and will also have knock-on effects across the local value chain, including suppliers, logistics providers, and contractors in the Lesedi community. The company has initiated a formal consultation process with employees and unions in line with labor law and expects this process to conclude by the end of March 2026, ahead of the full shutdown later in the year. Despite the closure, BATSA stressed it is not exiting South Africa and will transition to an import-based supply model to continue serving adult consumers.

    The company said it has spent more than a decade engaging with government and law-enforcement authorities, warning that policy decisions such as the 2020 tobacco sales ban, above-inflation excise increases, and proposed new tobacco legislation have widened the gap between legal and illegal products. BATSA argued that enforcement efforts have been insufficient to protect legitimate businesses and jobs, with illicit cigarettes costing an estimated R28 billion ($1.7 billion) a year in lost tax revenue. BATSA also warned that illicit trade is increasingly affecting other sectors, including alcohol, pharmaceuticals, and consumer goods.

    The growth of illicit trade accelerated after a Covid-era ban on tobacco sales in 2020, from which BATSA says the legal market never recovered. BATSA said it could reconsider local manufacturing if there is sustained progress in curbing illicit trade but cautioned that proposed new tobacco legislation and rising excise duties risk further worsening the problem.

  • PCA’s Tips for Posting Industry-Related Material on Social Media

    PCA’s Tips for Posting Industry-Related Material on Social Media

    The Premium Cigar Association (PCA) published an article focused on posting tobacco-related content on social media, saying Meta (the parent company of Facebook and Instagram) has intensified enforcement around content linked to regulated industries, increasingly limiting the reach and visibility of posts even when they do not clearly violate written policies. Much of this tightening, the article says, is driven by automated and AI-based moderation systems and evolving internal standards, resulting in reduced feed placement, recommendation blocks, or suppressed exposure without clear warnings. While this creates challenges, accounts are still able to post if they adapt their approach to align with Meta’s enforcement environment.

    The PCA advised shifting away from direct product promotion toward lifestyle, educational, and community-focused content, while avoiding explicit sales language, pricing, or calls to purchase. Using neutral captions, lifestyle imagery, and modest hashtags can help reduce enforcement risk, though inconsistencies remain common. Given the unpredictability of social platforms, businesses are also encouraged to diversify communication by strengthening owned channels such as websites, email newsletters, SMS lists, and in-store engagement, with storytelling and education proving most effective for sustaining audience connection.

  • JTI Promotes Yahaya to North Asia VP, Ellena Director of Malaysia

    JTI Promotes Yahaya to North Asia VP, Ellena Director of Malaysia

    Japan Tobacco International announced that Juliana Mohd Yahaya, who led JTI Malaysia since October 2023, has moved to the role of vice president, sales and marketing for JTI North Asia. Effective January 5, JTI Malaysia announced the appointment of Didier Ellena as managing director.

    Yahaya has been with JTI for more than 25 years, beginning in sales in 2000 before being promoted to positions including global brand manager, marketing director, and country manager, before taking the role of general manager in Malaysia.  

    Ellena brings more than 30 years of experience with JTI, having held senior leadership roles across multiple markets, including Hungary, Russia, France, and Italy, and will be responsible for overseeing the company’s overall business strategy and operations in Malaysia.

    JTI Malaysia said the appointment underscores its focus on sustainable growth, regulatory compliance, and responsible business practices, while reaffirming its commitment to operating within Malaysia’s regulatory framework and contributing to the country’s economic and social development.

  • BAT to Cut 59% of Jobs from Belgium Facility

    BAT to Cut 59% of Jobs from Belgium Facility

    Yesterday morning (January 14) at a special works council meeting, BAT Belgium announced plans to cut up to 51 of its 87 jobs at its Groot-Bijgaarden facility as part of a proposed restructuring driven by mounting regulatory and economic pressures, according to Retail Detail. The company said it has initiated a collective redundancy procedure, with 48 of the 74 roles in its commercial unit and three of 13 positions in other departments potentially affected, subject to consultations with social partners.

    According to BAT, increasing regulation, bans on certain nicotine products, rising excise duties, and the expansion of the illegal tobacco market have led to a sustained erosion of revenue and weighed heavily on business performance. The company said the restructuring aims to create a more efficient and agile organization in response to these challenges.

  • IQOS Curious X Debuts at Zamna

    IQOS Curious X Debuts at Zamna

    Philip Morris International (PMI) launched its global collaboration between IQOS and the Zamna music festival last week, according to Marvin magazine, with its IQOS Curious X platform debuting at Zamna 2026 in Tulum, Mexico. The engagement platform featured a dedicated IQOS experience zone aimed at adult smokers and adult nicotine users, aligning music and immersive environments with PMI’s smoke-free positioning.

    Leonardo de Alencar, director of smoke-free products at Philip Morris Mexico, said festivals such as Zamna provide a space to engage adult audiences and support the transition away from cigarettes, while Zamna executives described the partnership as part of a broader push for creative and cultural innovation. Zamna originated in Tulum, and this year will host additional music festivals in Egypt, Malta, and Türkiye.  

    PMI said IQOS now has more than 34 million adult users globally, including over 140,000 in Mexico.

  • Scottish Retailers Want Help as Illicit Vapes Top £2.8B

    Scottish Retailers Want Help as Illicit Vapes Top £2.8B

    Scottish convenience retailers are calling for tougher enforcement to combat what they describe as a deepening black market in illegal vapes, warning that poorly designed regulations could worsen the problem, according to Convenience Store. The Scottish Grocers’ Federation (SGF) said illicit vape sales are depriving the public purse of millions of pounds in lost tax revenue, undermining compliant local stores, and posing health risks due to unregulated products. As the UK Government’s Tobacco & Vapes Bill advances and Scotland prepares secondary legislation, SGF urged policymakers to consult retailers closely and invest more in trading standards enforcement to prevent unintended criminal opportunities, particularly around flavor restrictions and product placement rules.

    SGF head of policy and public affairs Luke McGarty said organized criminal gangs are increasingly involved in the illicit vape trade, with products often sold to underage consumers and without any safety assurances. He warned that illegal tobacco already costs HM Revenue and Customs an estimated £2.8 billion annually, a figure likely to rise sharply as the illegal vape market expands. Retailers reported that illicit activity has intensified following the disposable vape ban, with three-quarters of SGF members saying the restriction has encouraged illegal sales. Store owners and the federation stressed that without stronger enforcement and carefully calibrated rules, further regulation risks accelerating illicit trade, increasing crime and abuse against retail staff, and undermining public health objectives, including smoking cessation.

  • OK Rules Replacing Tobacco Trust Members Unconstitutional

    OK Rules Replacing Tobacco Trust Members Unconstitutional

    The Oklahoma Supreme Court ruled that a 2025 state law allowing elected officials to replace members of the Tobacco Settlement Endowment Trust (TSET) board at will is unconstitutional, affirming the voter-approved independence of the trust and safeguarding its authority to allocate tobacco settlement funds free from political interference. Established by constitutional amendment in 2000, TSET manages most of Oklahoma’s payments from the 1998 Master Settlement Agreement. The court’s decision preserves the original intent of voters to insulate TSET from political influence and ensures the continuation of its public health mission, a position supported by leading medical and public health organizations that filed an amicus brief backing the trust.

  • Nepal Confiscates 16K Illicit Vapes at Mountain Border

    Nepal Confiscates 16K Illicit Vapes at Mountain Border

    Nepalese authorities seized e-cigarettes valued at Rs 22.4 million ($155,000) at the Korala border, underscoring continued enforcement against illegal vape trade. The Nepal Police, Armed Police Force, and Mustang Customs Office intercepted a container carrying 16,000 vape units on Monday (January 12) evening, with the driver taken into custody and the vehicle impounded. The seizure follows a similar operation last year at the same transit point—a high-altitude crossing point with China’s Tibet Region—where vapes worth Rs 68.1 million ($470,000) were confiscated, highlighting persistent smuggling activity along the border.