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  • PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    A top executive of Philip Morris International (PMI) expressed optimism about the growth of smoke-free alternatives in the Philippines, saying the company sees strong potential despite being in the early stages of its market rollout.

    “In the Philippines, we are still at the very early stages, but we have a lot of confidence in smoke-free products,” said Stefano Volpetti, president of the smoke-free products category and chief consumer officer at PMI.

     Volpetti said progress in Metro Manila is already showing promise, drawing parallels with the company’s initial launches in other countries. He said PMI is committed to making smoke-free alternatives accessible to Filipino smokers, particularly through education and proper explanation of the products.

    “If you think about it, when we started in Italy and in Japan, we started from Milan and Nagoya,” Volpetti said. “We are starting the same journey in the Philippines, starting from Metro Manila. It is clear that when those smoke-free alternatives are well explained to Filipino smokers, there is clearly attraction to move from traditional cigarettes.

    “But we are very confident, because this is a journey that we have done in more than 90 countries around the world. We know the recipe of this journey and the progress in Metro Manila is very powerful.”

    At present, PMI’s smoke-free offerings in the Philippines include IQOS devices, HEETS and TEREA sticks, the more affordable BONDS device, BLENDS consumables and the ZYN oral nicotine product. When asked about the affordability of smoke-free products for Filipinos, Volpetti acknowledged the economic barriers but said PMI is working to provide more options.

    “In general, we have two important aspects of this journey,” he said. “The first aspect is to be sure that smokers understand the benefits of smoke-free alternatives. Because if you don’t understand the benefits, if the benefits are not explained to you, it is very difficult to be able to appreciate that. 

    “We are able to design the consumables in a way that is more in tune with the experience of different consumers around the world. [What the consumers around] the world wants in terms of taste, flavor, in terms of pleasure, but also in terms of the budget they are ready to pay. In the coming future, you will see a portfolio that is more balanced between the premium segment and the medium segment. Our mission is to provide choices across all consumer categories.”

  • 22nd Century Announces Q1 Webcast

    22nd Century Announces Q1 Webcast

    22nd Century Group, Inc. will host a webcast May 13, 2025, at 8 a.m. EST to discuss its 2025 first quarter results, which are to be reported in a press release at 6 a.m. EST the same day.

    During the webcast, Larry Firestone, chairman and chief executive officer, and Dan Otto, chief financial officer, will review financial results, discuss progress made in the recent months, and update plans for the 2025 year.

    The live and archived webcast will be accessible on the Events web page in the Company’s Investor Relations section of the website, at https://ir.xxiicentury.com/events. The company suggests listeners log in 10 minutes prior to the start of the webcast to register and, if necessary, download and install any required software.

  • Cambodia PM: E-Cigarette Investment Not Welcome  

    Cambodia PM: E-Cigarette Investment Not Welcome  

    Cambodia’s Prime Minister Hun Manet said the country does not welcome investment in e-cigarettes, even if the products are being solely exported. He said that today (May 5), speaking at the official launch of the National Cancer Control Plan (NCCP) 2025–2030.

     “If investors come for other types of investments, I welcome them,” he said. “But for e-cigarettes, Cambodia can say, ‘No need — please go elsewhere.’”

    He also issued a strong appeal to the public, particularly young people, urging them not to use e-cigarettes.

    “Please don’t think it’s cool to smoke or vape,” he said. “Instead, focus on your studies and strive to become someone recognized for your achievements.”

    Cambodia has banned the import, trade, and use of e-cigarettes, shishas, and heated tobacco products (HTPs) since 2014.

  • Brian King Joins Campaign for Tobacco-Free Kids

    Brian King Joins Campaign for Tobacco-Free Kids

    Yesterday (May 1), the Campaign for Tobacco-Free Kids today named Brian King as Executive Vice President for U.S. Programs to lead the organization’s work at the federal, state and local levels. Last month King was forced out of his role as the director of the U.S. Food & Drug Administration’s (FDA) Center for Tobacco Products (CTP).

    “Brian King is extraordinarily qualified to lead our U.S. programs at this critical time.,” said Yolonda C. Richardson, president and CEO of the Campaign for Tobacco-Free Kids. “Brian has dedicated his career to advancing science-based policies and programs that reduce tobacco use and its devastating consequences. His leadership, passion and breadth of knowledge and experience will guide us in the next phase of our work to protect children and end the death and disease caused by tobacco.”

    Under King’s leadership, the CTP was besieged by criticism from all sides, including politicians, anti-smoking advocates, and tobacco and vaping companies, as the FDA rejected applications for millions of flavored e-cigarettes, citing insufficient data that the products would help adult smokers while not becoming popular with underage kids. Those rejections resulted in multiple lawsuits against the FDA from vape makers.

    Prior to joining FDA, King served as the Deputy Director for Research Translation in CDC’s Office on Smoking and Health and as Executive Editor of CDC’s Morbidity & Mortality Weekly Report. He holds a doctorate and M.P.H. in Epidemiology from the State University of New York at Buffalo.

  • Dominoes Falling in Cigar Tariff Increases

    Dominoes Falling in Cigar Tariff Increases

    When President Donald Trump announced the United States’ new tariff policy on April 2, many tobacco enthusiasts wondered how the premium cigar industry would react. A casual poll by Halfwheel said half the cigar manufacturers were going to raise prices due to the tariffs, but for more than a month, they took a wait-and-see approach to see what their competitors did. It seems the first domino fell April 29, when Perdomo became the first cigar company to up its prices, 25 cents per cigar, because of the tariffs.

    On April 30, both CLE Cigar Co. and RoMa Craft Tobac announced price increases effective May 5 due to tariffs, according to Halfwheel.

    CLE Cigar Co. said cigars up to 52 ring gauge will increase 20 cents on the wholesale price, while cigars 54 ring gauge and larger will increase 30 cents.

    “We have to increase prices starting Monday, May 5th,” said Christian Eiroa, the company’s founder, in a letter to retailers. “We have waited as long as we could, optimistic that the tariffs would be reversed, but no such luck.”

    Skip Martin, co-founder of RoMa Craft Tobac, said the increases will typically be less than 5%, but there are some SKUs that are increasing by more than 10%.

    “As the tariffs are assessed on our import price, and not on our wholesale price, the impact varies based on how much margin we have built into our wholesale prices,” said Martin. “In most cases, we are absorbing some of the tariffs and not passing them on to the retailer, knowing that the retailer will keystone any increase we pass onto them, doubling the impact on our consumers. Given our more generous margins on LEs, these are generally affected the least. Given our very tight margins on Maestranza, this brand is affected the most severely.”

    Martin also said that if the tariffs were removed, RoMa Craft would not lower prices. This, according to Halfwheel, is likely to be the strategy that most cigar companies take.

    “Should the unlikely reversal of the tariffs occur, we will not reduce our prices as this would only devalue our retailer’s inventory. It would delay any future price increase and could possibly allow us to do more in terms of discounts and free goods to support our retailers’ ability to drive sales of our brands.”

  • Top Tobacco’s $1.1M Verdict Likely to Stand

    Top Tobacco’s $1.1M Verdict Likely to Stand

    A company that sold counterfeit Top Tobacco LP cigarette rolling papers likely won’t escape a $1.1 million jury verdict, an Eleventh Circuit panel indicated during oral argument. A jury found Star Importers and Wholesalers Inc. sold counterfeit papers, though not willfully. Although Star proved it profited just $7,000 from accidental infringement, Top Tobacco elected statutory damages, which for non-willful infringement range from $1,000 to $200,000 per mark, and the jury awarded $123,000 for each of nine infringed trademarks.

    The panel suggested that overruling the properly instructed jury’s verdict, which fits within statutory damages boundaries in trademark law, would undercut Top Tobacco’s right to a jury trial.

    Circuit Chief Judge William H. Pryor said the jury was free to consider factors including the value of the brand and deterrence. He noted that statutory damages can be punitive, so no actual losses or profits are required, nor is willfulness.

    “It seems to me hard to accept an argument that there has to be this relation to actual damages, because the entire point of statutory damages is as an alternative to actual damages,” Pryor said. “We’re trying to deter negligence in the distribution of counterfeit products that pose a risk to public safety and that harm the reputation of a brand that a seller has spent millions of dollars every year in marketing.”

    Star was one of several entities sued by Top Tobacco in the U.S. District Court for the Northern District of Georgia over counterfeit papers in 2019. Another, Gabsons Novelties, filed a failed petition to the Supreme Court arguing its principal couldn’t be personally liable as he didn’t know of the ongoing infringement that had started before his tenure.

  • Altria to Host Annual Meeting May 15

    Altria to Host Annual Meeting May 15

    Altria Group, Inc. will host a live audio webcast of its 2025 Annual Meeting of Shareholders May 15, 2025, at 9 a.m. EST. During the meeting, shareholders as of the 2025 Annual Meeting record date (March 25, 2025) will be able to vote their shares electronically and will be able to submit questions during the meeting as time permits. Although shareholders will be able to vote their shares during the meeting, they are encouraged to do so before the meeting using one of the methods described in the 2025 Proxy Statement.

    If you are not a shareholder, you may listen as a guest but cannot participate.

    Directions on how to participate in the meeting are posted at www.altria.com/proxy.

    Instead of a business update presentation at the 2025 Annual Meeting, the company encourages shareholders and guests to review resources before the meeting, available at www.altria.com/investors.

  • Capital Group Has Less Than 5% Voting Rights in Scandinavian

    Capital Group Has Less Than 5% Voting Rights in Scandinavian

    The Capital Group Companies, Inc., the world’s largest active fund manager, reported that it controls 4.91% of the total share capital in Scandinavian Tobacco Group A/S. Capital Group controls 4,226,410 shares. This reporting is in reference to Section 38 of the Danish Act on Capital Markets (kapitalmarkedsloven).

    Scandinavian Tobacco Group has its headquarters in Copenhagen, Denmark, and employs approximately 10,000 people in Europe, the U.S., Canada, the Dominican Republic, Honduras, Nicaragua, Indonesia, and Sri Lanka. 

  • Perdomo First Cigar Company to Add Tariff Increase

    Perdomo First Cigar Company to Add Tariff Increase

    Perdomo Cigars announced it will increase its prices 25 cents per cigar beginning May 1, the second time the company has raised prices 25 cents in 2025. The first was to adjust rising costs with wholesale pricing, the second is because of new U.S. tariffs.

    “As you may know, a new 10% tariff has been imposed on premium handmade cigars imported from Nicaragua, where every Perdomo cigar is proudly crafted,” said Nick Perdomo Jr., the company’s president and CEO. “This government-mandated cost affects every manufacturer in our industry, and once again, we are called to protect our customers, the end consumers, and our employees while navigating the challenging business environment we all face today.”

    Nicaragua was to have a 19% tariff, but the rate was dropped to 10%, through “a 90-day suspension.”

    “The tariff is applied to the ‘direct import price,’ which is neither the wholesale price that retailers buy the cigars for nor the price that consumers pay for cigars,” Charlie Minato wrote for Halfwheel. “Unlike state tobacco taxes, which are calculated based on the wholesale price, the tariffs are baked into the wholesale price. Because of this, the tariffs won’t simply be passed onto consumers, consumers will likely end up paying double whatever the increase is. In this case, that means the 25-cent increase is effectively 50 cents for consumers, though it will end up being more once state tobacco and sales taxes are applied.”

    Earlier this year, cigar manufacturers were taking a “wait-and-see” approach to see how competitors would handle the tariff situation, so this is likely the first of many price increases the industry will see due to tariffs.

  • IQOS System Commercially Available in Texas

    IQOS System Commercially Available in Texas

    Today, PMI U.S. announced its FDA-authorized IQOS system is now commercially available to residents in the Greater Austin, Texas, area online at www.IQOS.com/us, at select pop-up stores, and other 21+ venues. IQOS is available in more than 70 markets globally since launching in Japan 10 years ago. The launch in Texas marks the first in a series of introductions in markets across the U.S.

    “We’ve seen the impact that a diverse range of smoke-free alternatives—like IQOS and ZYN—can have in helping adults 21+ move away from cigarettes,” said Stacey Kennedy, PMI U.S. CEO. ”We are committed to raising awareness and educating both consumers and public health leaders about the progress being made in harm reduction with our smoke-free products.”

    The news that Austinite’s can now purchase IQOS onlinefollows the March announcement that a permanent IQOS store opened downtown. Since October 2024, more than 5,000 Austin residents signed up to “Be the First” to experience IQOS.