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Category: Business & Finance

  • BAT Kenya Says Illicit Cigarettes Costing $92M in Lost Taxes

    BAT Kenya Says Illicit Cigarettes Costing $92M in Lost Taxes

    BAT Kenya warned that illicit cigarettes now account for about 45% of Kenya’s cigarette market, costing the government an estimated Sh12 billion ($92.4 million) annually in lost tax revenue. The company said the illegal trade is undermining legitimate manufacturers and threatening an industry that supports about 80,000 livelihoods across farming, manufacturing, distribution, and retail.

    BAT Kenya Managing Director Sidney Wafula said illicit cigarettes, particularly those entering through porous borders including Uganda, are the company’s biggest challenge. “The continued rise in illicit cigarette trade remains the most significant threat to the sustainability of the legitimate industry and its value chains,” Wafula said, calling for sustained enforcement and stronger border controls.

    The warning came as BAT Kenya reported half-year revenue growth of 5% to Sh12.3 billion ($94.7 million), supported by export recovery and growth in nicotine pouches. The company said it expects continued growth in modern oral nicotine products while urging predictable tax policies and stronger action against illicit tobacco trade.

  • Indonesia Adds Tax Layer to Bring Illegal Cigarettes into the Fold

    Indonesia Adds Tax Layer to Bring Illegal Cigarettes into the Fold

    Indonesia’s government confirmed it will not raise tobacco excise rates in 2026, opting instead to restructure the cigarette excise system by adding new tax tiers. Finance Minister Purbaya Yudhi Sadewa said the move is intended to bring machine-rolled clove cigarettes (SKM) that have effectively operated outside the current tax structure into the excise system. The government expects the changes to be implemented this year, arguing that revising the tax structure is more appropriate than raising excise rates amid weakening consumer purchasing power and a shift toward lower-priced cigarettes.

  • Nicokick Partners With Zone for PBR Event

    Nicokick Partners With Zone for PBR Event

    Nicokick.com announced its partnership with ITG Brands’ zone premium nicotine pouches for PBR Teams Wildcatter Days in Oklahoma City from July 31 to August 2. Under the partnership, Nicokick will be the exclusive online retailer for zone’s Spicy nicotine pouch lineup, including Jalapeño Lime, Spicy Strawberry, Spicy Mango, and the new Spicy Mix-Pack.

    Nicokick said zone sales on its platform increased 158% in 2025, making it one of its largest brands. The Spicy lineup will be available in 6 mg and 9 mg nicotine strengths, with Spicy Strawberry exclusive to Nicokick through October 2026 and Spicy Mango available online exclusively through the retailer for at least six months.

  • ALP Accelerating UK, European Expansion

    ALP Accelerating UK, European Expansion

    ALP announced its expansion into the UK and European markets as part of its international growth strategy. Founded in late 2024 as a direct-to-consumer brand, ALP said it became the top DTC nicotine pouch brand in the U.S. before entering retail, reaching nearly 1% of U.S. convenience store nicotine pouch sales within 90 days of its retail rollout, according to Nielsen data. The company is launching across 11 European markets in July, with a goal of becoming one of Europe’s leading nicotine pouch brands by 2030. ALP said it will support the expansion through retail partnerships and marketing initiatives, including a global partnership with UFC fighter Conor McGregor.

  • Pyxus to Announce Q1 2027 Financials Aug. 5

    Pyxus to Announce Q1 2027 Financials Aug. 5

    Pyxus International will report its first-quarter fiscal 2027 financial results on Aug. 5 before U.S. markets open, followed by an earnings conference call and webcast at 9 a.m. EDT. The global agricultural company said it will release its results for the quarter ended June 30, along with a presentation on its investor relations website prior to the call, where management will discuss the company’s quarterly performance and outlook.

  • JT Acquires BREAK, Moro to Expand Combustibles in Europe

    JT Acquires BREAK, Moro to Expand Combustibles in Europe

    Following yesterday’s (July 22) announcement that Japan Tobacco Inc. was acquiring the BREAK and Moro fine-cut tobacco brands from Scandinavian Tobacco Group, the company said the deal is intended to strengthen its combustible tobacco business and support its long-term growth strategy. JT said expanding its fine-cut portfolio in Western Europe will improve returns in its combustibles business, reinforce its position in a key market, and help fund continued investment in reduced-risk products. The company added that the acquisition reflects its disciplined capital allocation strategy and is not expected to have a material impact on its financial performance.

  • STG Sells Fine-Cut Tobacco Brands to JT

    STG Sells Fine-Cut Tobacco Brands to JT

    Scandinavian Tobacco Group agreed to sell its fine-cut tobacco brands BREAK and Moro to Japan Tobacco Inc. for €176 million, representing a pre-tax enterprise value of approximately DKK 1.3 billion ($195 million). The transaction, which is expected to close by year-end pending customary approvals, includes brands primarily sold in Germany. BREAK and Moro accounted for about 4% of STG’s 2025 reported net sales and gross profit before special items, and approximately 6% of EBITDA before special items. Fine-cut tobacco represented around 12% of STG’s total 2025 sales.

    STG said the divestment supports its Focus2030 strategy by allowing the company to concentrate on higher-priority growth categories while transferring the brands to an owner better positioned to develop them. CEO Niels Frederiksen said proceeds from the deal will be used to reduce debt, lower leverage, and increase financial flexibility. The agreement also includes a contract manufacturing arrangement with JT for up to three years as STG reviews its manufacturing footprint and efficiency needs.

    The transaction is expected to reduce STG’s leverage ratio below its 2.5x target level at completion and will positively impact free cash flow through the transfer of inventories to JT. While the deal is expected to be dilutive to earnings, STG said it does not anticipate an impact on its 2026 guidance for reported net sales growth or EBIT margin before special items.

  • Smoke-Free Gains Push PMI Over $11B in Q2

    Smoke-Free Gains Push PMI Over $11B in Q2

    Philip Morris International reported strong second-quarter 2026 results, with net revenues exceeding $11 billion for the first time as smoke-free products drove growth. Reported diluted EPS fell 7.7% to $1.80 due to a $511 million non-cash impairment charge tied to PMI’s Rothmans, Benson & Hedges investment, while adjusted diluted EPS rose 15.2% to $2.20, or 13.6% excluding currency. Shipments increased 2.5%, led by a 7.5% rise in smoke-free products. Net revenues grew 10.4% to $11.2 billion, with smoke-free products representing about 42% of sales, while operating income increased 22% to $4.5 billion.

    The international smoke-free business remained PMI’s main growth driver, with revenue up 14.2% and volumes rising 8%. IQOS heat-not-burn shipments increased 7.6%, maintaining PMI’s leading position in the category, while growth continued across Europe and other key markets despite challenges from Japan’s excise increase and Poland’s flavor restrictions. PMI said it would increase investment in Zyn as the nicotine pouch volumes expanded globally, with the brand now available in 60 markets, while VEEV e-vapor shipments rose 55.1% as PMI continued expanding its smoke-free portfolio.

    International combustible sales also grew, supported by pricing and market gains, while the U.S. business remained under pressure. Combustible revenue increased 9.8%, with cigarette growth in Turkey, Indonesia, and Egypt, while Marlboro gained market share. U.S. revenue declined 0.7% due to weakness in cigars and wellness products, though Zyn shipments rose 1.8% to 2.9 billion pouches following portfolio expansions. PMI maintained its 2026 outlook, forecasting adjusted EPS growth of 9.5% to 11.5%, organic revenue growth of 5% to 7%, and continued investment in smoke-free products.

    According to Reuters, PMI’s shares rose ​about 5% in early trading even though the company also cut its annual profit ​forecast for the third time this year due to negative currency effects.

  • JTI Backs Philippines’ Market Stabilization Strategy

    JTI Backs Philippines’ Market Stabilization Strategy

    Japan Tobacco International (JTI) endorsed the NTA’s Strategic Tobacco Production Information Campaign (STRATPIC), which aims to align tobacco production with global demand and discourage oversupply ahead of the 2026-2027 planting season. JTI said the initiative will support the industry’s long-term sustainability by helping farmers avoid market disruptions, while emphasizing that data-driven planning, stakeholder collaboration, and a stable policy environment are essential to protecting farmer livelihoods and encouraging continued investment in the Philippine tobacco sector.

  • Turning Point Hosting Q2 2026 Call Aug. 4

    Turning Point Hosting Q2 2026 Call Aug. 4

    Turning Point Brands announced it will report its second-quarter 2026 financial results on Aug. 4, with management scheduled to host a conference call and webcast at 9 a.m. ET to discuss quarterly performance and answer questions from the investment community. A live webcast will be available through the company’s investor relations website, with a replay posted approximately two hours after the call.