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Category: Business & Finance

  • CEO Breaks Down PMI’s Smoke-free Future for Investors

    CEO Breaks Down PMI’s Smoke-free Future for Investors

    Philip Morris International used its appearance at the Morgan Stanley Global Consumer & Retail Conference yesterday (December 2) to reinforce that its smoke-free transition is a structural, irreversible shift, not a cyclical phase. CEO Jacek Olczak framed the dynamic succinctly, noting that smokers who switch to alternatives “very rarely” return to combustible cigarettes and that “smoke-free is essentially a one-way street.”

    Immediately before the event, PMI issued a brief communication to stabilize expectations, reaffirming the company’s guidance from Q3.

    Olczak said that PMI’s three-platform system—IQOS, ZYN, and vapor—is the most effective way to replace combustibles across all usage occasions. “Our objective is to equip the smoker with all three platforms. This is the best way to keep them away from smoking,” he said.

    ZYN remains PMI’s central U.S. growth engine. Following a one-time $100 million activation after supply shortages, “brand equity parameters of ZYN shot up by double-digits,” with the product capturing more than half of category growth despite maintaining a premium price.

    Internationally, IQOS is in its 11th consecutive year of expansion. Japan is nearing a 50/50 split between combustibles and smoke-free products, and prior category pauses were, Olczak said, “just a blip on the graph.” Upcoming Japanese tax equalization and European flavor bans are viewed as temporary disruptions rather than structural threats.

    PMI is also restructuring around a U.S./International dual-engine model, retiring its traditional regional setup. “We don’t really run the business by regions anymore,” Olczak said, positioning the company for future IQOS ILUMA authorization in the United States.

    Capital demands remain modest, with Olczak stressing that “adding extra capacity is only a few hundred million dollars — not a disturbing factor.” Overall, his message to investors was clear: the smoke-free shift is a one-way trajectory, and PMI believes it now has the platforms, structure, and regulatory environment to accelerate it.

  • Strategic Partnership to Elevate Cannabis Data Use

    Strategic Partnership to Elevate Cannabis Data Use

    Paradym Solutions and BDSA announced a strategic partnership designed to reshape how cannabis companies use data. At the core of the collaboration is the integration of Paradym’s advanced analytics and semantic AI with BDSA’s comprehensive market intelligence. This combination aims to move the industry beyond static reporting toward real-time, unified insights that can guide decision-making and growth.

    Technologically, the partnership focuses on building a new data ecosystem that mirrors the rigor of mature Consumer Packaged Goods markets. Paradym’s platform will enable clients to merge internal datasets with BDSA’s market data, producing sophisticated analytics that can be applied directly to business strategy. The companies plan to co-develop new metrics and standardized reporting attributes, setting a precedent for how cannabis businesses manage and interpret data.

  • Charlie’s Holdings’ New Factory to Serve Texas Market

    Charlie’s Holdings’ New Factory to Serve Texas Market

    Yesterday (December 1), Charlie’s Holdings, Inc. announced the opening of its first U.S.-based manufacturing facility in Huntington Beach, California, which will exclusively produce the company’s own brands, including the Pachamama 25K line. The move ensures full compliance with Texas’ new law banning certain vape products imported from China and other restricted countries.

    “We originally expected our US-filling facility to mitigate Far East shipping delays and to lessen tariff costs, but Texas’ new domestic manufacturing requirements have also created a massive sales opportunity for Charlie’s,” Charlie’s president Henry Sicignano III, said. “Demand is so great, we now plan to devote 100% of our current U.S. manufacturing capacity to the state of Texas; if all goes well, and if we expand our U.S. manufacturing initiative in the coming months, we believe Texas could double Charlie’s sales forecasts for 2026.”

    This week, 300 retail accounts across Texas will begin receiving shipments of Charlie’s U.S.-filled disposables.

    “To my knowledge, Pachamama is the only vapor products brand that has been on the market for more than a decade and is now fully compliant with Texas domestic manufacturing requirements,” said Ryan Stump, Charlie’s co-founder and Chief Operating Officer.

  • JT Expands Ploom Aura EVO Menthol Line

    JT Expands Ploom Aura EVO Menthol Line

    Japan Tobacco Inc. launched two new EVO menthol sticks—Evo Black Menthol and Evo Fresh Mint—for its Ploom Aura heated tobacco device, along with an upgraded Evo Cold Menthol variant, Japanese media outlet Kakakumag reported today (December 1). The additions bring the EVO menthol series to three distinct options, offering varying cooling intensities and flavor profiles.

    According to the company, Evo Black Menthol delivers the strongest cooling sensation in the EVO portfolio, while Evo Fresh Mint provides a milder mint aroma with a moderate cooling effect and a prominent tobacco flavor. The upgraded Evo Cold Menthol balances menthol freshness with tobacco body more effectively than before.

    JT has also released a limited-edition Aqua Green Ploom Aura device, complementing the expanded EVO menthol lineup and giving users new design and flavor options.

  • JTI to Open New Romanian Factory in 2027

    JTI to Open New Romanian Factory in 2027

    JTI Romania announced it will build a new state-of-the-art factory in Ștefăneștii de Jos, Ilfov County, replacing its space-constrained Bucharest plant. Groundwork is scheduled to begin in the coming weeks, with completion slated for 2027.

    The Bucharest facility currently exports 75% of its output to more than 70 countries, making it one of JTI’s key European production hubs. Senior VP Philip Livingston said the investment supports JTI’s drive to optimize its global manufacturing footprint, while factory lead Klaus-Walter Thul highlighted continual upgrades since operations began in 1994.

    JTI has invested heavily in Romania, including €25m in 2012 and a €60m program launched in 2021. The company employs 630 staff at the Bucharest factory and more than 1,500 nationwide.

  • ‘Cappuccino Strip’ Has Illicit Tobacco Hiding in Plain Site: Story  

    ‘Cappuccino Strip’ Has Illicit Tobacco Hiding in Plain Site: Story  

    Today (November 26), the Australian Broadcasting Corporation (ABC), published a story titled “Why convenience stores along Fremantle cafe strip are the front line of WA’s illegal tobacco trade,” highlighting how Australia’s famous “cappuccino strip” has become a hub for illegal tobacco sales, with dozens of convenience stores quietly selling unlicensed cigarettes and loose tobacco.

    The story says each store is a carbon copy of the others, with scant products on the shelves, with the illicit money-making products that keep the store open hidden in cabinets and under counters. Despite widespread concern, Western Australian authorities lack the legal power to immediately shut down offenders, allowing the trade to flourish in plain sight.

    The Australian Council on Smoking and Health (ACOSH) has long called for updated laws, pointing to South Australia and Queensland, where tougher enforcement and heavy fines have successfully curtailed illicit sales. ACOSH chief Laura Hunter described the problem as an enforcement issue, not a tax one.

    WA Health reports nearly one million cigarettes and 160 kg of loose tobacco seized in the past two years, but these figures pale in comparison to federal-level busts. Nationwide, tobacco excise revenue has fallen from A$16 billion ($10.4 billion) in 2019 to A$7.4 billion ($4.8 billion)  this year, while major retailers like Coles and Woolworths have lost over half their tobacco revenue, leaving the market open to criminal operators.

    Local leaders are exploring measures to curb the spread. Fremantle Mayor Ben Lawver noted that the city has 16 convenience-type shops in the CBD alone and is considering rezoning them as discretionary uses, giving the council some control over new openings.

    In the meantime, the illicit tobacco trade continues to thrive, with limited state resources available to enforce existing laws, the story concluded.

  • KT&G, Altria on Track to Expand Global Pouch Business

    KT&G told Nate News that its plans to enter the global nicotine pouch market in earnest next year are moving forward as planned, believing that its $176.8 million purchase of Another Snus Factory will be completed this year, followed by disposing of 49% of the company to Altria.

    “Starting next year, we plan to expand the nicotine pouch business beyond the five Nordic countries [Iceland, Sweden, Norway, Denmark, and Finland] to Europe, the Middle East, Africa, Asia, and North America,” a KT&G official said.

    According to Euromonitor, the global nicotine pouch market reached $11.2 billion in 2024 and is expected to grow more than 30% this year.

  • SKE Shows Continued Growth in Korea

    SKE Shows Continued Growth in Korea

    SKE Korea told The Manila Times that it is replicating the “strong trajectory” the company achieved as it continues to grow in the UK and Europe. The company said it remains focused on building a long-term ecosystem in South Korea that supports channel partners through consistent supply capabilities, high-performing products, and strong sell-through potential.

    SKE partnered with 7-Eleven Korea, and over the last six months has placed its products in more than 5,700 stores nationwide—about half of the chain’s outlets—demonstrating rising consumer demand and brand recognition. Beyond convenience stores, SKE has also strengthened its presence in specialty vape channels via collaborations with OG9 and online with Most Vape.

    The company said flagship products such as the SKE Crystal Bar TB1000 continue to resonate with Korean shoppers, while the SKE Cloud Zero introduces industry-first features like Vaporless Mode, a dual-mode system, and a patented Mobius Strip display, appealing to Korea’s trend-driven market.

  • STG Launches Focus2030, Revamps Shareholder Returns

    STG Launches Focus2030, Revamps Shareholder Returns

    Scandinavian Tobacco Group (STG) unveiled its new five-year strategy, Focus2030, ahead of its Capital Markets Day tomorrow (November 20). The plan aims to strengthen the company’s core machine-rolled and smoking tobacco business in Europe, expand its handmade cigar operations in the U.S., and accelerate growth in the nicotine pouch category.

    To support the strategy, STG’s board has adopted new financial ambitions and a flexible shareholder return policy. Targets include a return on invested capital of at least 11% by 2030, low single-digit annual EBIT growth, and free cash flow before acquisitions of at least DKK 1.2 billion ($180 million). The shareholder return framework shifts to a 40–60% dividend payout ratio against adjusted earnings per share, supplemented by share buybacks when leverage allows. Since listing in 2016, STG has returned more than DKK 9 billion ($1.4 billion) to shareholders.

    The company also plans DKK 200 million ($30 million) in cost improvements early in the strategy period to bolster efficiency and earnings resilience. CEO Niels Frederiksen said Focus2030 will create long-term value for consumers, employees, and shareholders, positioning STG to drive growth beyond 2030. The Capital Markets Day presentation will be livestreamed from 14:00 to 16:30 CET.

  • Imperial Revenue Dips, But Delivers Strong NGP Growth

    Imperial Revenue Dips, But Delivers Strong NGP Growth

    Imperial Brands announced its full-year results for the year ended September 20, highlighting continued operational momentum and robust shareholder returns, even as reported earnings faced pressure. The company posted 4.1% growth in tobacco and Next Generation Products (NGP) net revenue, driven by double-digit NGP gains, strong tobacco pricing, and stable market share across its five priority markets. Since FY20, Imperial has added 48 basis points of market share. However, reported revenue slipped 0.7%.

    “We will continue to invest in consumer insights, innovation, and marketing capabilities,” said Imperial CEO Lukas Paravicini. “We will also continue to make deliberate, focused choices about which opportunities we pursue, and develop a simpler, more efficient, and more agile organization.”

    NGP performance remained a standout, with net revenue climbing 13.7% and reported NGP revenue up 14.9%, fueled by oral nicotine growth in the U.S. and Europe and share gains across all smoke-free categories. Adjusted operating profit rose 4.6%, though reported operating profit fell 1.8%. Adjusted earnings per share increased 9.1%, supported by profit growth and share count reduction, while reported EPS dropped 16.5%.

    Cash generation remained strong, with free cash flow of £2.7 billion, largely driven by the combustibles business. Shareholder returns were a key focus: the FY25 dividend rose 4.5%, and a £1.25 billion buyback was completed. Over FY21–FY25, Imperial returned £10 billion to shareholders, and a new £1.45 billion buyback for FY26 has already commenced.