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Category: Business & Finance

  • Imperial Brands, Japan Tobacco Gain Share in Italy as UK Volumes Slide

    Imperial Brands, Japan Tobacco Gain Share in Italy as UK Volumes Slide

    Cigarette and cigar volumes fell sharply in two key European markets during the four weeks ending in mid-May, according to Nielsen data cited by Bank of America, declining 14.3 percent in the UK and 5.9 percent in Italy. The figures point to continued contraction in combustible volumes overall, while individual manufacturers diverged considerably between the two markets, with Italy emerging as a relative bright spot for some players.

    Imperial Brands saw UK cigarette and cigar volumes fall 13.8 percent over the period, a market that represents roughly 6 percent of its tobacco and next-generation product revenue. In Italy, however, Imperial posted volume growth of 22.8 percent and gained about 150 basis points of market share. Japan Tobacco followed a similar pattern, with UK volumes down 13.9 percent but a 15-basis-point share gain in Italy and a 5.5 percent volume decline there.

    British American Tobacco and Philip Morris International fared less well on share. BAT’s UK volumes fell 20.3 percent, costing it roughly 50 basis points of share, while its Italian volumes dropped 7.3 percent for a loss of about 30 basis points; Bank of America estimates Italy and the UK together account for around 3 percent of BAT’s 2025 adjusted EBIT including new categories. PMI’s UK volumes declined 16.1 percent and its Italian cigarette volumes fell 8.1 percent, with share losses of roughly 20 and 100 basis points respectively, though the report notes that Nielsen’s EU data does not capture PMI’s heated tobacco products.

  • Charlotte’s Web Closes BAT Transaction, Adds $10 Million Equity Injection

    Charlotte’s Web Holdings has completed a two-part transaction with BT DE Investments, a subsidiary of British American Tobacco, that converts existing debt to equity and brings in fresh capital. The company first amended and converted in full the convertible debenture it had issued to BAT on November 14, 2022, which carried a principal of CAD75,341,080 (USD54.7 million). Together with CAD14,223,321 (USD10.3 million) in accrued interest, the total converted amount of CAD89,564,401 (USD65 million) was settled through the issuance of 95,281,277 common shares at a conversion price of CAD0.94 per share.

    Concurrently, BAT subscribed to a non-brokered private placement of 14,662,765 additional common shares at the same CAD0.94 price, generating gross proceeds of USD10 million (CAD13.8 million). The company said the net cash will support its participation in the anticipated CMMI Medicare pilot program and other medical-channel initiatives, a pathway intended to let eligible Medicare beneficiaries access CBD products through physician consultation, subject to program requirements and regulatory approvals. The transaction remains subject to final approval from the Toronto Stock Exchange.

    CEO Bill Morachnick framed the deal as a strengthening of the company’s balance sheet and capital position, describing increased financial flexibility and a streamlined capital structure that better positions Charlotte’s Web to execute its growth strategy and expand access. Charlotte’s Web, a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness company focused on hemp extract products, including full-spectrum and broad-spectrum CBD as well as other cannabinoid offerings. Its shares trade on the TSX under “CWEB” and on the OTCQX under “CWBHF.”

  • Artesano del Tobaco Announces Three New Releases

    Artesano del Tobaco has shared updates on three upcoming releases — two slated for 2026 and one targeting 2027. The announcements came via an email to the company’s subscriber list and was reported by Halfwheel.

    The first release is the Viva La Vida Connecticut Lancero, a vitola selected through a poll of the company’s email list, where a Churchill finished first and the Lancero second. Originally announced at the 2026 PCA Convention & Trade Show with a September target and a 38 ring gauge, the latest communication shifts the release window to “summer” and lists the ring gauge at 40. MSRP remains $17 per cigar.

    The second 2026 release is the El Pulpo Corona Gorda, a box-pressed 6½ x 48 described as medium-bodied. The blend features a Mexican San Andrés wrapper over a Nicaraguan binder and Nicaraguan fillers. No pricing has been announced; a fall release is the current target.

    Looking further ahead, the company is teasing a new line called Oro Corojo, developed over four years in collaboration with AJ Fernandez. The blend is described as 80 percent complete, with no details yet disclosed on sizes, blend specifics, or pricing. Artesano del Tobaco is targeting a debut at PCA 2027, scheduled for March 6–8 in Las Vegas. All of the company’s lines are produced by AJ Fernandez in Nicaragua.

  • Universal Corporation Posts Lower FY2026 Profit on Impairment, Tobacco Write-Downs

    Universal Corporation reported financial results for the fiscal year and fourth quarter ended March 31, 2026, with full-year sales and other operating revenue of $2.92 billion, roughly in line with the prior year’s $2.95 billion. Reported operating income fell 28 percent to $168.5 million, and adjusted operating income declined 13 percent to $211.3 million. Reported diluted earnings per share dropped to $1.30 from $3.78, while adjusted diluted EPS fell to $2.64 from $4.63. The results were weighed down by a $41.1 million non-cash goodwill impairment charge tied to the company’s Universal Ingredients-Shank’s operation and by inventory write-downs of $52 million, primarily for non-wrapper, dark air-cured tobacco, an increase of $32.2 million over the prior year.

    In the Tobacco Operations segment, revenue slipped 1 percent to $2.58 billion on a 2 percent decline in sales volumes and prices, partially offset by higher third-party processing volumes and product mix. Segment operating income fell $28.6 million, reflecting reduced volumes and the dark air-cured write-downs, even as demand for most tobacco styles remained firm and flue-cured and burley tobaccos performed solidly. Uncommitted tobacco inventory stood at 27 percent at year end, above the company’s target range due to delayed customer purchase commitments, but is expected to return to range during fiscal 2027. The Ingredients Operations segment grew revenue 3 percent to $348.1 million on higher volumes, though operating income fell to $3.2 million amid market headwinds, tariff impacts, high fixed costs from expansion at Shank’s, and $8.6 million in inventory write-downs.

    Chairman, President, and CEO Preston D. Wigner characterized the year as solid execution in a markedly different operating environment than the prior year, following an exceptionally strong fiscal 2025 for the tobacco segment. He expressed confidence heading into fiscal 2027, citing the resilience of the tobacco business and efficiency enhancements underway at Shank’s. The company reported total debt down $168.7 million year-over-year, interest expense down $5.6 million, and approximately $1.3 billion of available liquidity at March 31, 2026. Wigner also highlighted sustainability progress, including an advance to an “A” rating in CDP Supplier Engagement and recognition as a CDP Supplier Engagement Leader.

  • J.C. Newman Ships Fourth LeRoy Neiman Collector’s Edition

    J.C. Newman Cigar Co. has begun shipping the fourth installment of its LeRoy Neiman Collector’s Edition, a limited release built around the work of the late artist and cigar enthusiast. The 2026 edition reproduces Neiman’s painting The President’s Birthday Party, which depicts Marilyn Monroe’s 1962 performance for President John F. Kennedy at Madison Square Garden. Fourth-generation owner Drew Newman said the patriotic image was selected to mark the 250th birthday of the United States, noting that figures including Bobby Kennedy, Ted Kennedy, and Lyndon Johnson also appear in the work.

    The cigar is offered in a single size, a Toro Grande measuring 6 1/2 inches by 56 ring gauge, and priced at $24. The blend pairs an Ecuador Habano wrapper with a Florida sun-grown binder and a filler of Nicaraguan and Dominican tobacco. Each cigar arrives in a sleeve bearing the painting, which is also reproduced as a lithograph on the inner lid of the box, giving the packaging the character of a small gallery exhibition. The cigars are made in Tampa at the El Reloj factory atop J.C. Newman’s headquarters.

    Production is limited to 750 boxes of 20 cigars each. The release date coincides with what would have been President Kennedy’s 109th birthday, and the company says all profits from sales will support arts education in public schools.

  • Warfighter Tobacco Ships 10th Anniversary and San Andres Releases

    Warfighter Tobacco Co. has begun shipping the two new cigars it introduced at the 2026 PCA Convention & Trade Show: the Warfighter 10th Anniversary and the Warfighter San Andres. The 10th Anniversary commemorates the veteran-owned company’s tenth year in business and, unusually for an anniversary cigar, enters the lineup as a regular production release rather than a limited edition. It is a 6 x 52 toro built with an Ecuadorian-grown, Sumatra-seed wrapper over a Honduran binder and Nicaraguan filler, carrying an MSRP of $12.75 per cigar and $255 for a box of 20.

    The Warfighter San Andres represents the return of a previously limited release, now also moving to regular production. The cigar originated as the company’s Heroes Sports line, released in 2022 to benefit a Texas-based charity of the same name. Its blend, a Mexican San Andres wrapper with Nicaraguan binder and filler in the same 6 x 52 toro format, is unchanged, but the name and branding have been revised. It is priced at $12.75 per cigar.

    Both cigars are produced at Tabacalera Carreras in Esteli, Nicaragua.

  • Imperial Expands U.S. Portfolio with Black Buffalo Acquisition

    Imperial Expands U.S. Portfolio with Black Buffalo Acquisition

    Imperial Brands announced it has acquired Black Buffalo in a deal valued at $150 million upfront, with additional performance-based payments over the next three years, as the company looks to expand its position in the fast-growing U.S. oral nicotine category. The acquisition gives Imperial and its U.S. subsidiary ITG Brands a stronger foothold beyond traditional nicotine pouches through Black Buffalo’s tobacco-free long cut and pouch products designed to replicate the experience of moist smokeless tobacco.

    Founded in 2015 and manufactured in North Carolina using U.S.-grown leafy greens, Black Buffalo has built a growing presence in the U.S. modern oral segment that has generated roughly $6.6 billion in sales over the past year and continues to grow at double-digit rates. While Imperial’s existing Zone pouch brand recently reached about 2.8% national market share across more than 109,000 U.S. stores, the company said Black Buffalo’s differentiated positioning complements its existing oral portfolio and strengthens its long-term next-generation products strategy as cigarette volumes continue to decline globally.

  • ALP Taps Conor McGregor as Pouch Brand Partner

    ALP Taps Conor McGregor as Pouch Brand Partner

    ALP Supply Co. announced a partnership with Conor McGregor as the company accelerates its expansion across international markets and broader consumer marketing channels. ALP, founded less than two years ago, said the collaboration will support its nicotine pouch brand growth ahead of planned launches in the European Union and South America later this year.

    The agreement includes a multi-channel marketing campaign spanning broadcast, digital, social, and experiential activations, timed around major combat sports events, including International Fight Week in July, where speculation continues around McGregor’s potential return to competition. ALP executives said the partnership aligns with the company’s strategy of building visibility through sports and culture-focused marketing as competition intensifies in the rapidly growing nicotine pouch category.

    The company said it plans to continue expanding retail and digital distribution as demand for oral nicotine products grows globally.

  • BAT Encouraging Participation in EU’s Call for Evidence

    BAT Encouraging Participation in EU’s Call for Evidence

    British American Tobacco launched an initiative aimed at encouraging adult consumers and retail partners to participate in the European Commission’s Call for Evidence on future EU tobacco and nicotine legislation. The campaign, titled “Share Your Voice,” is designed to drive engagement with the EU’s ongoing review of its Tobacco Products Directive and direct stakeholders to the Commission’s “Have Your Say” consultation platform during the current feedback period.

    The company said the initiative is intended to provide practical insight into how proposed regulatory changes could affect real-world product use and retail operations, arguing that better-informed policymaking requires input from consumers who have switched to smokeless alternatives. BAT estimates that more than 30 million adults in Europe now use smokeless nicotine products and warns that parts of the Commission’s policy direction could restrict or ban categories of reduced-risk products.

    The European Commission has indicated in its April 2026 evaluation report that it is considering tighter restrictions on tobacco and nicotine products as part of an updated regulatory framework. The consultation process remains open to stakeholders as part of the legislative review process.

  • PMI to Present at the dbAccess Global Consumer Conference

    PMI to Present at the dbAccess Global Consumer Conference

    Philip Morris International Inc. said it will host a live webcast of remarks and a Q&A session with CEO Jacek Olczak at the 2026 dbAccess Global Consumer Conference on June 2, at 11:15 a.m. CET. The session will be streamed live and made available for replay for one year via the company’s investor relations channels, including its mobile app and website.

    The event will provide an update on PMI’s strategy as it continues to position itself as a “smoke-free” consumer goods company, with a portfolio spanning cigarettes and reduced-risk products such as heat-not-burn devices, nicotine pouches, and e-vapor products. The company also highlighted ongoing regulatory milestones, including U.S. FDA authorizations for products such as Zyn nicotine pouches and IQOS devices, as it continues to expand its investor communications around its long-term transition strategy.