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Category: Business & Finance

  • Indonesian Groups Reject Tobacco Tier Tax Proposal

    Indonesian Groups Reject Tobacco Tier Tax Proposal

    A coalition of Indonesian civil society groups rejected a government proposal to expand the country’s tobacco excise system by adding a new tariff tier, arguing it could undermine public health objectives and increase corruption risks. The Coalition Save Our Surroundings (SOS), which includes CISDI, Seknas FITRA, and Indonesia Corruption Watch, said the plan contradicts the primary purpose of excise policy of controlling consumption, and instead prioritizes revenue generation. Officials proposed adding a ninth tier to the existing structure to encourage illegal producers to enter the formal market, with potential implementation as early as May 2026.

    Critics argue the move could complicate the system and enable “downtrading,” where consumers shift to cheaper products, while also creating opportunities for manipulation and weak enforcement. CISDI recommended simplifying the current structure rather than expanding it, and ICW warned that additional tiers could open new avenues for corruption through product misclassification. Government officials maintain the policy could help increase revenue and curb illicit trade, but civil society groups say it does not address underlying enforcement challenges.

  • Drew Estate Expanding Operations into D.R.

    Drew Estate Expanding Operations into D.R.

    Drew Estate announced plans to expand into the Dominican Republic with a new manufacturing and agricultural project, Drew Dominicana, expected to open in early 2027, according to the Premium Cigar Association. The development includes a 73,000-square-foot cigar factory in Santiago and a dedicated tobacco farm in Villa González, marking the first time the company will produce cigars outside of Nicaragua, where its operations have historically been based. The company said most production will remain at its Estelí facility, while certain brands, including Deadwood Tobacco Co. Dominicana and Undercrown El Tigre Dominicano, are expected to transition to the new site once operational.

    The project will focus on tobacco cultivation, cigar production, and consumer-facing experiences. Drew Estate said the farm will grow tobacco exclusively for the company and will be led by Dominican cultivator Manuel Peralta. Company executives described the expansion as a long-term strategic investment, with additional details on production and future releases to be announced as development progresses.

  • Altria Reports Q1 2026 Results; Reaffirms Full-Year Guidance

    Altria Reports Q1 2026 Results; Reaffirms Full-Year Guidance

    Altria Group reported a strong start to 2026, delivering solid financial growth and reaffirming full-year earnings guidance. First-quarter net revenues rose 3.2% to $5.4 billion, while adjusted diluted earnings per share (EPS) increased 7.3% to $1.32, driven by higher operating income and reduced share count. The company continues to generate significant cash flow, enabling shareholder returns through $1.8 billion in dividends and $280 million in share repurchases during the quarter. Management maintained its full-year adjusted EPS outlook of $5.56 to $5.72, reflecting confidence in continued performance despite macroeconomic uncertainty.

    Operationally, Altria’s smokeable products segment remained the primary earnings driver, supported by pricing strength and Marlboro’s continued leadership in the premium category. While overall cigarette shipment volumes declined due to industry contraction, income growth and margin expansion offset these pressures. In the oral tobacco segment, the on! nicotine pouch brand showed volume growth and ongoing national expansion, though competitive dynamics and shifting product mix weighed on margins. The company continues to balance investment in emerging smoke-free products with maintaining profitability in its core combustible business.

    Strategically, Altria said it is advancing its “Moving Beyond Smoking” vision by investing in smoke-free alternatives and long-term growth initiatives. The company is navigating moderated e-vapor category growth, regulatory constraints, and evolving consumer preferences, while also investing in manufacturing capabilities and cost-efficiency programs. Although near-term challenges include declining cigarette volumes and competitive pressure in oral products, Altria said its strong cash generation, disciplined capital allocation, and diversified nicotine portfolio position it to sustain earnings growth and shareholder value over the long term.

  • Philip Morris Korea Appoints New Managing Director

    Philip Morris Korea Appoints New Managing Director

    Philip Morris Korea named Lee Hong-suk as its new managing director, effective May 1, as the company continues to advance its smoke-free product strategy in the country. Lee, who has been with Philip Morris International since 1999, has held senior roles across multiple markets and most recently led the company’s smoke-free products division in Korea.

    In his new role, Lee will oversee operations in one of PMI’s key markets for alternatives such as IQOS, with a focus on expanding the company’s presence and engagement with stakeholders. The company said Lee will be essential as it continues to prioritize smoke-free product development and commercialization in the Korean market.

  • PMI Schedules 2026 Annual Shareholder Meeting

    PMI Schedules 2026 Annual Shareholder Meeting

    Philip Morris International announced that it will hold its 2026 Annual Meeting of Shareholders on May 6 at 9 a.m. ET via a live virtual webcast. The meeting will be accessible online, with presentation materials and a replay available for one year following the event.

    Chairman André Calantzopoulos and CEO Jacek Olczak are scheduled to address shareholders and respond to questions, with participation limited to verified shareholders using a control number.

  • Altria Outperforms Peers as Cigarette Declines Moderate: Motley Fool

    Altria Outperforms Peers as Cigarette Declines Moderate: Motley Fool

    A recent Motley Fool analysis highlights continued declines in U.S. cigarette volumes, though at a slower pace than expected, with industry data showing a 4.3% to 5.5% year-over-year drop and a 5.1% decline so far in 2026. The figures came in better than earlier projections, suggesting the rate of contraction in the traditional cigarette market may be stabilizing somewhat, even as long-term declines persist.

    The report notes that Altria is outperforming key competitors in this environment, with its cigarette volumes down 4.7% compared to sharper declines of 9.3% for British American Tobacco and 9% for Imperial Brands. At the same time, Motley Fool said next-generation products show mixed performance, with nicotine pouches growing 22% while e-cigarette volumes fell 17%, underscoring uneven momentum across reduced-risk categories as companies continue to navigate the transition away from combustible products.

  • Syrian Tobacco Production Rocked by Factory Disruptions

    Syrian Tobacco Production Rocked by Factory Disruptions

    Syria’s state-run tobacco sector has seen a sharp decline in production following widespread disruption to manufacturing facilities, with around 80% of cigarette and shisha factories not fully operational, according to the head of the General Organization of Tobacco (GOT). Officials attribute the shutdowns to damage, looting, and instability linked to recent military developments, which are significantly impacting output capacity.

    As a result, tobacco production fell to 3,209 tons in 2025, while the state entity has reduced its workforce by 35% over the past year.

  • BAT NZ Revenue Down 29% Amid Rising Illicit Trade

    BAT NZ Revenue Down 29% Amid Rising Illicit Trade

    British American Tobacco New Zealand reported a sharp decline in financial performance in 2025, with revenue falling nearly 29% year over year to NZ$180.7 million ($106.6 million), which the company attributed in part to the growth of the illicit tobacco market. According to The Post, industry estimates suggest illicit products accounted for 27.2% of consumption in 2024, equating to roughly NZ$600 million ($354 million) in lost excise revenue, as high cigarette taxes continue to push consumers toward the black market.

    The downturn was reflected across key business indicators, including a significant drop in inventory levels and reduced tax payments, while dividend payouts to the parent company remained stable. BAT has called for stronger enforcement measures, including tougher penalties and retailer licensing, as illicit trade expands alongside broader market shifts such as declining smoking rates and rising vape use.

  • Turning Point Schedules Q1 2026 Earnings Call

    Turning Point Schedules Q1 2026 Earnings Call

    Turning Point Brands, Inc. announced it will report its first quarter 2026 results on May 7, with a conference call scheduled for 8:30 a.m. ET. The company said analysts and investors can join via dial-in or listen through a live webcast on its investor relations website, with a replay available shortly after the call.

  • Fiber-Based Snus Packaging Moves Toward Commercial Production

    Fiber-Based Snus Packaging Moves Toward Commercial Production

    Future Materials Sweden ordered two Scala machines from PulPac to establish industrial-scale production of fiber-based snus cans at a new facility in Ljungby, marking a shift from product development to commercialization. The site will serve as the company’s first production hub, focusing initially on high-volume snus packaging—an area traditionally dominated by plastic—signaling growing momentum for alternative materials in nicotine product packaging.

    PulPac said the investment reflects broader industry interest in sustainable packaging solutions, with its Dry Molded Fiber technology positioned as a scalable alternative. Both companies said the move is aimed at building capacity for future expansion and partnering with additional brands, as demand grows for renewable, lower-impact packaging across the tobacco and nicotine category.