Category: News This Week

EU Tracking System Under Fire in Panama

Photo: Tobacco Reporter archive
During the meeting in Panama of the parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP3), European Member of Parliament Anne-Sophie Pelletier today expressed her concerns about the shortcomings of the European tobacco product tracing system.
According to Pelletier, the Dentsu tracking system fails to comply with World Health Organization protocol—which the EU ratified in 2016—in part due to its association with the tobacco business.
Dentsu’s system is split between IT firms that operate information-tracking databases on those codes for individual manufacturers and importers, and an overarching level that gathers all that data into a “secondary data repository.” At the end of 2018, Dentsu Tracking, a subsidiary of Japan’s Dentsu Group, was awarded a contract to operate this secondary repository.
During a debate in Brussels on Feb. 8, European lawmakers highlighted the inefficiency of the European tobacco product tracing system, with several member states lamenting an increase in the level of tobacco parallel trade since its implementation in 2019.
Furthermore, European parliamentarians questioned the choice of Dentsu Tracking as the provider, and that company’s recruitment of Jan Hoffmann, a former official of the EU’s Directorate-General for Health and Food Safety (DG Sante), as director of its regulatory affairs and compliance division.
Dentsu has denied that Hoffman had any part in either awarding the contract to the company during his stint at DG Sante, or that he is using his Commission contacts to help the company in any way. “His hiring at Dentsu was carried out in full compliance with all applicable laws and regulations,” Dentsu Tracking’s CEO Philippe Castella was quoted as saying by Politico in 2023.
February 13, 2024
Rutgers to Study Menthol Ban Perception

Photo: By Benjamin Clapp
Rutgers University researchers have received more than $7 million to study disinformation and marketing around the proposed U.S. ban on menthol cigarettes and flavored cigars with a particular focus on how the information affects Black and Hispanic smokers, reports The Philadelphia Inquirer.
Kymberle Sterling, associate director for justice, equity, diversity and inclusion at the Rutgers Institute for Nicotine and Tobacco Studies, will lead two studies funded by the National Institute on Minority Health and Health Disparities and the National Institute on Drug Abuse.
According to Sterling, it’s crucial to study how Black and Hispanic smokers, demographic groups that tend to smoke more menthol cigarettes than white individuals, perceive messaging from the tobacco industry around the menthol ban.
Those against the ban worry that it will increase policing of Black communities and businesses while supporters feel that the ban will save lives, especially in Black communities where menthol is prevalent.
“We know that police discrimination among African American communities is a problem,” Sterling said. “However, the tobacco industry is co-opting that and using that real social justice issue as a way to promote fear—and sell their product.”
Sterling’s team plans to use the funding to develop counter-messaging debunking false information and providing facts about menthol cigarettes. The study will look at the effectiveness of the public health campaign over five years. Researchers will also work with community members to educate individuals about the menthol and flavored cigar ban.
“What we would ideally like to do is develop a set of messages that our community partners can disseminate in their community. Once this grant is wrapped up, we don’t want the work to stop because the tobacco industry won’t stop,” Sterling said.
The study will also look at how the tobacco industry reacts once the ban is in place, such as new packaging.
“We’re looking at how young adults are exposed to this repackaging as well as what sort of sociopolitical rhetoric the industry will put out,” Sterling said.
February 13, 2024
Deborah Arnott to Retire from ASH

Photo: Lyubov
Deborah Arnott will be retiring from Action on Smoking and Health (ASH) on Sept. 30, and the board of trustees is starting the recruitment process for her successor.
During her 21-year tenure at ASH, Arnott developed and led campaigns that contributed to U.K. legislation prohibiting smoking in public places, putting tobacco out of sight in shops and plain standardized tobacco packs. According to ASH, the ratcheting up of regulation has been accompanied by substantial declines in smoking prevalence of more than half among adults and more than 80 percent among children aged 11–15.
Before Arnott retires, Parliament is expected to have passed laws to create a smoke-free generation.
“I want to thank Deborah for her passion and determination over the last 21 years,” said Nick Hopkinson, chair of trustees at ASH, in a statement. “While everyone at ASH will be sad to see Deborah go, she leaves ASH in a robust position, with sound finances and a talented staff team. The next chief executive will inherit a highly motivated group of colleagues and supporters. Now is an exciting time for tobacco control, with government commitments to a smoke-free future and raising the age of sale to create a smoke-free generation overwhelmingly supported by the public and Parliament.”
Arnott said, “I am proud to be leaving ASH at a good time and in safe hands, well on the way to delivery of our mission to eliminate the harm caused by tobacco. Our values, the strength of our team, the quality of ASH advocacy and networking, and our reputation and influence all stand us in good stead for the future. Whoever takes over from me is inheriting the leadership of an outstanding organization.”
Bob Blackman, Member of Parliament and chairman of the All-Party Parliamentary Group on Smoking and Health, which ASH provides the secretariat for, said, “What has been achieved in tobacco legislation over the last 21 years is in no small measure due to the brilliant work led by Deborah at ASH. Working in collaboration with politicians from across the political spectrum, she has built and sustained a truly cross-party consensus on ending the harms from smoking. As a result, I have no doubt that MPs from every party will vote to create a smoke-free generation later this year. We have much to thank her for.”
February 13, 2024
India Urged to Embrace Harm Reduction

Photo: Taco Tuinstra
India should consider harm reduction strategies to reduce the health toll of tobacco, according to the Global Sustainability Alliance (GSA), a group that focuses on developing global solutions to achieve the United Nation’s Sustainable Development Goals.
A recent report by World Health Organization suggests that new cancer cases are likely to rise to at least 35 million in 2050, a 77 percent rise over the cases diagnosed in 2022. In India, an estimated 1.4 million cancer cases were recorded in the same year, while one in 9 citizens could develop cancer in their lifetime. Tobacco-related cancers accounted for 27 percent of the country’s cancer burden in 2020, according to the Indian Council of Medical Research.
Despite recent progress, India remains the second largest consumer and producer of tobacco. The number of smokers as well as smoking related diseases seem to be stagnant, which, the GSA says, sheds light into the fact that the tobacco control polices under WHO have not been successful for India. The group says country needs to find a solution on its own and develop a strategy to reduce the number of cancer patients owing to tobacco consumption.
“Cancer is a serious concern for our population, especially with tobacco use as a leading cause, which is avoidable,” said Bharat Gopal, director of Pulmonology, Delhi Heart & Lung Institute in a statement. “There is no safe way to use tobacco, however a major risk of cancer comes from combustion of tobacco or tobacco smoke. Most toxic substances, including carcinogenic agents, are released due to combustion. If we can somehow remove combustion from the process, it would reduce harm and help save lives.”
The GSA points to Sweden, Japan and the United Kingdom as examples of countries that have bettered their public health by adopting tobacco harm reduction policies to reduce disease rates, cancer being one. The smoking rate in Sweden had dropped from 15 percent to a 5.6 percent in the past 15 years, registering a 41 percent lower incidence than in the EU. Similarly, the Japanese smoking rate declined drastically between 2016 and 2019. Almost three in every 10 Japanese smokers stopped smoking cigarettes.
“We know stopping smoking is ideal to stop cancer, but the reality is that millions struggle to quit,” said R. Zimlichman, director of the Brunner Institute for Cardiovascular Research at the Sackler Faculty of Medicine of Tel Aviv University in Israel. “Harm reduction offers a pragmatic and potentially life-saving alternative. Embracing harm reduction strategies, such as switching to nicotine alternatives, has led to a remarkable decline in mortality rates and improved public health outcomes. The world needs standardized harm reduction solutions chosen by governments for their safety and efficacy. Delay in implementing harm reduction measures costs millions of lives worldwide.”
February 13, 2024
JT Reports ‘Record’ Performance

Masamichi Terabatake (Photo: JT Group)
The JT Group reported a profit of ¥482.3 billion ($3.2 billion) for 2023, up nearly 9 percent over the previous fiscal year. Revenue increased 6.9 percent year-on-year, to ¥2.84 trillion. For the fourth quarter, the company posted a profit of ¥40.3 billion and revenue of ¥684.1 billion, up 3.5 percent and 5.4 percent, respectively, over the comparable 2022 periods.
“I am pleased to report that the 2023 JT Group performance reached record high levels across all financial indicators, despite the challenges across our operating environment. Adjusted operating profit at constant FX [foreign currency exchange rates], our main indicator, exceeded our guidance and grew by 5.2 percent, driven by all business segments,” said JT Group President and CEO Masamichi Terabatake in a statement.
In the tobacco business, JT Group’s profit growth engine, performance was driven by solid pricing and continued share gains in combustibles. “We steadily expanded the geographic reach of Ploom X, making it available to adult consumers in 13 markets at the end of 2023,” said Terabatake. In Japan, the JT Group’s share of the heated tobacco sticks market reached 11.4 percent in December 2023.
Terabatake said the JT Group would continue to prioritize investments in heated tobacco sticks to fund the expansion of Ploom X, both in terms of share of segment and geographic footprint. The company aims to make Ploom X available in over 40 markets by the end of 2026. Combustibles, said Terabatake, will continue to drive profit by growing market share and revenue.
February 13, 2024
Contemplating the Fallout

Photo: bennyrobo
What will the U.K.’s ban on disposable vapes mean for the next-generation nicotine industry?
By Paul Hardman
Prime Minister Rishi Sunak recently announced that the U.K. government would ban disposable vapes as part of its plan to tackle the rise in youth vaping. The new measures come as the government responds to a recent consultation on smoking and vaping, which, it says, indicated “overwhelming support” for a ban on disposables. What does this decision mean for the next-generation nicotine industry? And what may come next?
As well as banning disposable vapes, the U.K. government will implement new powers to restrict vape flavors, introduce plain packaging and change how vapes are displayed. As part of the measures, the government is introducing new fines for shops in England and Wales that sell vapes illegally to children, with Trading Standards officers able to hand out fines on the spot on top of the up to £2,500 ($3,155.58) fines that local authorities can already issue.
The government may use powers already established under the Environmental Protection Act to enforce the ban, which is expected to come into force at the end of 2024 or early 2025.
Tackling Youth Access
Back in 2019, the U.K. government launched its Smoke-Free 2030 ambition, which seeks to reduce tobacco smoking prevalence to below 5 percent by the end of the decade. Alternative methods of accessing nicotine, including vapes, are critical to achieving this smoke-free vision. However, the government’s position on vaping has come under increased scrutiny, partly because of a recorded growth in youth uptake.
According to an ASH survey, titled “Use of e-cigarettes (vapes) among young people in Britain,” in March/April 2023, the proportion of children experimenting with vaping had grown by 50 percent year-on-year, from one in 13 to one in nine. In 2023, 20.5 percent of children had tried vaping, up from 15.8 percent in 2022 and 13.9 percent in 2020. Popular flavors among respondents included fruit (60 percent) followed by sweet or soft drinks (25 percent).
The government reports that disposable vapes have been “a driving force behind the alarming rise in youth vaping, with the proportion of 11[-year-old] to 17-year-old vapers using disposables increasing almost ninefold in the last two years.” Some may feel that this trend has been driven by their convenience—they can be purchased, used immediately and discarded. It could also be due to their affordable prices, bright colors and flavor appeal. However, this convenience is important for offering smokers a safer, accessible alternative to combustible cigarettes. Therefore, a balance must be struck.
On the other hand, pod-based systems are generally less convenient as these often require charging before use. Typically, pod-based systems carry a higher price tag for the whole system than a disposable product, and investment into a certain type of system is therefore required. Once the device has been selected, the user is tied to a particular range of pods. A consumer opting for the more expensive tank-type e-cigarette will need to navigate changing coils and different e-liquid types and strengths, making these more complex than using a disposable vape.
In our experience, disposable products also tend to contain the highest allowed concentration of nicotine, 20 mg per milliliter, in the form of nicotine salts, which have been shown to be absorbed more rapidly than nicotine freebase and may result in greater nicotine dependence than products with slower uptake.
The report also references the environmental impact, mentioning that 5 million disposables are discarded each week, the equivalent to the lithium batteries of 5,000 electric vehicles. These are stark figures and put the environmental impact into context.
The Impact of the Measures
Though the measures are specifically designed to tackle youth vaping, there will naturally be an impact on the industry as a whole. We may see surging youth popularity for modern oral nicotine pouches, new product categories emerging or a trend toward heated tobacco. It is important that these products do not follow the same path as disposable vapes in terms of youth appeal so that their access can be retained for adult smokers wishing to quit combustible cigarettes. This means robust regulation, regulatory enforcement and responsible behavior from manufacturers and retailers.
Manufacturers of disposable vapes will now be looking for ways to engineer their products so that they can remain on the market. The technology used in disposable vapes is not necessarily disposable; the batteries are capable of many charge cycles, and it would not be difficult to engineer replaceable tanks. It may be that disposables manufacturers switch to reusable systems, such as pod-type vapes, and keep the look and taste as similar as possible to current products. The “new powers to restrict vape flavors” may be important in ensuring these amended devices are not as appealing to children.
The government will need to set out a legal definition of disposable vapes and clarify how the ban and restrictions will be implemented. For instance, at this stage, it is unknown whether there will be any additional requirements regarding the notification process and whether manufacturers must submit additional product information to remain compliant with the Tobacco and Related Products Regulations 2016 (TRPR).
Unless more detail is provided in the legislation, loopholes could appear that manufacturers and retailers might seek to exploit. For example, it is illegal to sell vapes to under-18-year-olds in the U.K., but retailers could still give out disposables to children as free samples. Following recommendations by the Khan review, in April 2023, the government announced that it would be closing this loophole.
There are concerns among U.K. ministers that some manufacturers may adapt their disposable vapes to circumvent the ban. According to The Guardian, ministers are “eliminating ruses such as attaching charging points to them [disposable vapes].” Interestingly, when asked about manufacturers adding USB charging points to unrefillable vapes to avoid the ban, Health Secretary Victoria Atkins commented: “That’s incredibly cynical [to ask], and it shows, if you like, the battle that the government is prepared to take on.”
There are also concerns that on-the-spot fines will not be sufficiently high to prevent unscrupulous retailers from selling to under-18-year-olds. After all, it is currently illegal to sell any e-cigarette to youth, but the problem prevails. With £30 million announced to fund HM Revenue and Customs, Border Force and Trading Standards, it will be interesting to see if the amount is sufficient to tackle the issue of illegally imported and sold products.
It will also be interesting to see if any further measures are introduced for products popular with young people, perhaps to target reusable vapes that are specifically designed to look like something else a child might have on their person, such as a highlighter pen or mascara.
Nicotine Pouches as “Vaping Alternatives”
The government mentions that “Vaping alternatives—such as nicotine pouches—will also be outlawed for children who are increasingly turning to these highly addictive substitutes.” While introducing an age restriction is a sensible move, we will have to wait to see what additional regulations will follow for nicotine pouches. For example, whether there will be a cap on nicotine strength and a sensible approach to flavors/graphics and advertising—the sorts of restrictions that ought to be in place for all consumer nicotine products may help reduce youth appeal.
It is important that nicotine pouches do not fall into the same traps as disposable vapes did. These products can be considered one of the lowest risk consumer nicotine products available, and their access must be maintained to aid adult smokers working to quit or reduce smoking.
Where Manufacturers Can Go from Here
In a letter to the Prime Minister, the U.K. Vaping Industry Association expressed its “profound dismay and disappointment” with the decision to proceed with a disposable vape ban. According to the letter, “This decision jeopardizes the significant progress made in reducing smoking rates in the U.K. and poses a threat to the well-being of millions of adults who have successfully quit smoking with the help of vaping.”
However, it’s possible that a disposable ban could leave a gap in the market for tobacco harm reduction products that are not youth-appealing but appeal to smokers and are sufficiently effective in their nicotine delivery and taste to substitute traditional combustible cigarettes. Of course, all new consumer products will need to comply with the TRPR as well as the new measures that ban disposables, standardize packaging and restrict flavors.
The Medicinal Pathway
As the consumer nicotine market faces greater restrictions, we may see a growing number of manufacturers working to get their vapes approved as medicinal products in the U.K. As part of the U.K. government’s vision for a smoke-free future, the Medicines and Healthcare products Regulatory Agency is actively looking to approve e-cigarettes as nicotine-replacement therapies. If licensed as a medicinal product, e-cigarettes do not need to comply with the TRPR limits, such as the 20 mg per milliliter limit on nicotine concentration. The medicinal product route also makes products exempt from the new measures simply because they are not consumer nicotine products. However, the various requirements around marketing and advertising of medicines would apply instead.
By following the Marketing Authorization Application (MAA) approval pathway, manufacturers can bring flavored, higher concentration nicotine e-cigarettes to U.K. smokers but with a more controlled marketing infrastructure that limits youth access. For instance, products that receive a marketing order under a General Sales license are subject to the same sales restrictions as over-the-counter pharmaceutical products like paracetamol, preventing minors from buying them.
The medicinal product route gives smokers wishing to quit the confidence that the product has been developed, manufactured and tested to strict medicinal standards. With the ability to use higher concentrations of nicotine, there is the potential to make a product more effective in terms of nicotine delivery compared to consumer products.
Early in an MAA application, manufacturers can partner with a scientific and regulatory compliance partner to support them through the process, from product design to regulatory approval, to improve their chances of success.
Summary
Backed by “overwhelming support,” the new ban on disposables is not without reason but not an approach Broughton advocates. As observed with other products and also reflected by the vaping industry in the U.S., prohibition is rarely effective and could set a dangerous precedent for the entire category. We agree with the sentiment of the new measures with regard to youth access but believe more detail is needed to prevent exploitation and to reassure manufacturers on how they can remain compliant with the TRPR and other relevant standards. Meanwhile, a blanket ban on disposables could spur innovation and the development of new medicinal products but only if manufacturers can access the right support.
Broughton is modifying its compliance framework as new regulations develop to ensure that its nicotine consulting service complies with the latest guidance. To find out how this framework can support you, visit the Broughton website, www.broughton-group.com.
Paul Hardman is a managing consultant at Broughton, an independent life sciences contract research organization offering analytical testing services integrated with scientific consultancy and global regulatory support.

February 12, 2024
BC Restricts Pouch Sales to Pharmacies

Photo: StratfordProductions
British Columbia has restricted the sale of nicotine pouches to drug stores, forcing users to consult a pharmacists prior to purchase, reports CBC.
“By limiting access to these products and ensuring they are dispensed by trained health-care professionals, our goal is to prevent their misuse, especially among young people for recreational purposes,” said Health Minister Adrian Dix.
The Canadian Cancer Society applauded the move, noting that while youth smoking rates in B.C. are down, other methods of nicotine consumption are up significantly.
“With the introduction of flavored nicotine pouches last year, youth once again can become addicted to these new tobacco industry products,” it said in a statement.
BAT subsidiary Imperial Tobacco Canada, manufacturer of the Zonnic nicotine pouch brand that was authorized for sale by Health Canada in October 2023, said British Columbia’s move would make it harder for smokers to quit.
“It is mindboggling that the only cessation product in BC that is currently stored behind the counter in convenience stores with retailers requiring age-verification is being targeted by today’s announcement,” said Eric Gagnon, vice-president, corporate and regulatory affairs at Imperial Tobacco Canada, in a statement.
“If today’s announcement was truly about protecting youth against nicotine, we question why Premier Eby isn’t putting the same restrictions on the other cessation products that contain nicotine and are available over the counter without proof-of-age,” he added.
In November, federal health minister Mark Holland said regulators had been “duped” and vowed to close the loophole that allowed Zonnic to be sold openly.
“There are very serious questions about what the tobacco industry is doing here and what their intention is. And it would seem that their intention is to addict new young people to nicotine, which is disgusting,” Holland said at the time.
Zonnic does not contain tobacco, and because the pouches contain less than four milligrams of nicotine each and are not inhaled, they do not fall under existing federal or provincial tobacco or vaping legislation.
February 12, 2024
Panama Anti-Illicit Trade Meeting Kicks Off

Photo: Europol
The Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products kicks off today in Panama City.
The gathering brings together 68 parties that have been working together to halt illegal trade in tobacco products. The meeting, which will run until Feb. 15, is the third such gathering of the Parties to the Protocol and the first since 2021.
According to the World Health Organization, illicit trade accounts for about 11 percent of total global tobacco trade, and its elimination could increase global tax revenues by an estimated $47.4 billion annually.
Adriana Blanco Marquizo, head of the Secretariat of the World Health Organization Framework Convention on Tobacco Control said that, despite its claims to the contrary, the tobacco industry profits from the illicit trade. “Implementing the protocol generates substantial funds for parties as it safeguards important tax revenues that can be utilized by governments to finance sustainable development,” she said in a statement.
The Meeting of the Parties will review the efforts underway to implement a tracking and tracing system.
A key component of the global tracking and tracing regime is the global information-sharing focal point, and the first phase of that initiative will begin to become available to parties once the meeting concludes.
Following an initial pilot phase, the new system will be open to all parties to the protocol, helping them to further secure the tobacco supply chain and assist in investigations.
The Meeting of the Parties will also consider ways to improve implementation of the protocol, determine the road ahead and highlight the need for additional evidence-based research. Reporting and information-sharing mechanisms will also be considered, as the sharing of experiences and best practices among parties is key to advancing the fight against illicit trade.
In addition to the parties that are signatories to the protocol, which is an international treaty, the meeting will host observers, including countries that are not yet parties to the treaty.
February 12, 2024
COP Concludes

Photo: Maksym Yemelyanov
The 10th session of the Conference of the Parties (COP10) to the World Health Organization Framework Convention on Tobacco Control (FCTC) concluded on Feb. 10 with a commitment to strengthen protections against the impact of tobacco on the environment and health.
“We have taken a historic decision on Article 18,” said Adriana Blanco Marquizo, head of the FCTC Secretariat, in a statement, describing action to strengthen the article of the FCTC focused on the protection of the environment and the health of all people.
“The decision urges parties to take account of the environmental impacts from the cultivation, manufacture, consumption and waste disposal of tobacco products and to strengthen the implementation of this article, including through national policies related to tobacco and protection of the environment,” Blanco Marquizo said.
Representatives from 142 parties gathered in Panama City Feb. 5–10 to tackle a range of issues from progress on implementation of the treaty to the regulation of tobacco advertising, promotion and sponsorship.
According to the WHO, some 200,000 hectares of land are cleared every year for tobacco cultivation, accounting for up to 20 percent of the annual increase in greenhouse gases.
The decision also addresses the issue of cigarette filters. According to the WHO, an estimated 4.5 trillion cigarette butts are thrown away annually worldwide, representing 1.69 billion pounds of toxic trash containing plastics.
“Under specific circumstances—such as sunlight and moisture—cigarette filters break down into smaller plastic pieces, eventually leaching out some of the 7,000 chemicals contained in a single cigarette,” the WHO wrote on its website. “Many of those chemicals are environmentally toxic. The decision on Article 18 is very timely given the ongoing intergovernmental negotiation committees working to develop an international legally binding instrument on plastic pollution, including in the marine environment.”
COP10 delegates also agreed to strengthen guidelines on cross-border tobacco advertising, promotion and sponsorship and the depiction of tobacco in entertainment media.
In addition, two expert groups were established—one to work on forward-looking tobacco control measures under Article 2.1 of the FCTC and the other to focus on Article 19, which concerns liability.
Other decisions adopted by COP10 relate to the promotion of human rights through the WHO FCTC as well as strengthening the FCTC Investment Fund.
The parties also agreed to extend by five years the mandate of the Global Strategy to Accelerate Tobacco Control 2019–2025: Advancing Sustainable Development Through the Implementation of the WHO FCTC 2019–2025 so that it fully aligns with the 2030 Agenda for Sustainable Development.
COP10 also adopted the Panama Declaration, which draws attention to the “fundamental and irreconcilable conflict” between the interests of the tobacco industry and the interests of public health. The declaration also makes clear the need for policy coherence within governments to comply with the requirements of Article 5.3 of the WHO FCTC, which aims to protect public health policies from commercial and other vested interests of the tobacco industry.
Contradicting the observation of tobacco grower and consumer groups that traveled to Panama, the WHO insisted that COP10 was open to the media, which it said had the opportunity to observe all public and open sessions.
COP10 is followed by the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products, which will meet in Panama City Feb. 12–15.
February 12, 2024
Russia Tackles Illicits

Photo: Center for Research and Perspective Technologies
Russia’s national digital track-and-trace system, Chestny ZNAK, has achieved a 25 percent reduction in illegal tobacco within a year of implementation, according to the Center for Research and Perspective Technologies in Moscow. Furthermore, it contributed to the legalization of 18 tobacco production and the dismantlement of 45 illegal ones.
Russia’s accomplishments were recognized during the 10^th Conference of the Parties (COP10) to the World Health Organization’s Framework Convention on Tobacco Control in Panama City this week.
Chestny ZNAK tracks each cigarette pack in real-time, from the point of production to final consumption. The technology relies on digital data matrix codes assigned to each pack. This code contains information including production point, date, expiration and licensing documents. The information is updated at every stage of the product’s lifecycle until final sale. Illegal products are flagged by cash registers in stores, making them impossible to sell.
To empower citizens and enhance transparency, a sophisticated mobile application has been introduced. This application allows users to verify the legality of various products, including tobacco and 16 other categories such as pharmaceuticals, dairy, footwear and photographic equipment.
The system has also helped other sectors protect their businesses against brand piracy, contributing to a 12-fold decrease in substandard dairy products, a 20 percent reduction in the illegal perfume trade, and a more than a two-fold decrease in the illicit tire market, among other advances.
Authorities estimate the tax impact of the system to be nearly RUB500 billion ($5.5 billion) and expect this figure to at least triple by 2025.
February 9, 2024