Category: Business & Finance

  • Top U.S. Tobacco Producer Bracing for Tariff Impact

    Top U.S. Tobacco Producer Bracing for Tariff Impact

    North Carolina, the United States’ leader in tobacco production, could face economic fallout from the Trump administration’s recent tariff increases, which have set off a spiraling trade war, Katherine Zehnder wrote for The Carolina Journal. North Carolina exported $533 million in tobacco last year, producing 260.1 million pounds annually, accounting for 60% of U.S. tobacco production.

    “I know tobacco growers are busy planting their crops now to honor the 2025 contracts they have in place with China,” Steve Troxler, commissioner of the North Carolina Department of Agriculture and Consumer Services said. “In the meantime, we continue to monitor these trade negotiations very closely, waiting to see what the outcome will be because it is a very fluid situation. Going back to the last trade negotiations that were initiated, the president was very good about helping farmers who had adverse effects. In fact, he was the first president in a very long time who included tobacco.”

    North Carolina has 822 tobacco farms, generating a revenue of $557 million and adding $197 million to the state’s GDP, according to Regulatory Smoke: The Economic Impacts of Proposed FDA Tobacco Regulations, a report from the John Locke Foundation. Tobacco manufacturers in the state generate $36 billion in output and contribute $31 billion to the state’s GDP, employing approximately 5,000 workers and paying them $370 million in wages. The tobacco wholesale sector brings in $15.3 billion in revenue, adds $9 billion to the GDP, and supports around 4,500 jobs.

    “Historically, tobacco exports have been a vital part of North Carolina’s agricultural strength, with countries like China, Japan, and the European Union serving as major buyers of our tobacco,” said Kelly Lester, policy analyst for the Center for Food, Power and Life at the John Locke Foundation. “When tariffs were imposed during the last trade war, China dramatically reduced its tobacco imports from the US, dealing a blow to farmers here at home. A repeat of that scenario could once again destabilize the market, lower prices, and put immense financial pressure on growers who are already navigating inflation, labor shortages, and tightening regulations.”

    The imposed tariffs could result in a significant downturn in these numbers. International markets, such as China, could also see a substantial downturn in exports due to increased tariffs, which would have a trickle-down effect on the state’s economy and agriculture sector. Last month, China announced plans to impose a 10% tariff on North Carolina exports, which include fruits and vegetables. In addition, China’s tariff on US goods was recently increased from 34% to 84%. 

    “It was pretty predictable that China was going to have a big impact, and they have, and they’re going to attack tobacco pretty hard because they know that that’s part of the soft underbelly in the agriculture sector,” State Rep. Jimmy Dixon, said. “I do not expect it to be permanent; I think that China will come to the negotiating table sooner rather than later, but the temporary reaction will be very tough and difficult and probably be a little bit depressing to our tobacco farmers. I’m telling people I’m personal friends with to hang on; it’s going to be a bumpy ride, but a short bumpy ride.”

  • AMCON Posts 2Q Losses

    AMCON Posts 2Q Losses

    AMCON Distributing Company, an Omaha, Nebraska-based convenience and foodservice distributor, announced fully diluted loss per share of $2.58 on a net loss available to common shareholders of $1.6 million for its second fiscal quarter ending March 31, 2025. The wholesale distribution segment reported revenues of $607.6 million and operating income of $2.8 million.

    AMCON, with its subsidiaries Team Sledd and Henry’s Foods, is a leading distributor of consumer products, including tobacco, nicotine, beverages, candy, and groceries. It serves Colorado, Idaho, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia.

    “The convenience retailing sector which we serve continues to experience a challenging operating environment with consumer behavior and discretionary spending lagging,” said Christopher H. Atayan, AMCON’s Chairman and CEO. “At the same time, the cost structures for convenience distributors have been impacted by the cumulative impact of inflation over a multi-year period. These inflationary pressures have resulted in higher operating expenses in areas such as product costs, labor and employee benefits, equipment, and insurance, and in additional consolidation across our entire industry.”

  • Nepal’s Plan to License Tobacco Faces Pushback 

    Nepal’s Plan to License Tobacco Faces Pushback 

    Nepal Industry Minister Damodar Bhandari is preparing to grant licenses to the cigarette, tobacco (gutkha), and alcohol industries, according to Republica. The Consumer Awareness Campaign-Nepal (CAC-N), however, expressed strong objection to the government’s plan. CAC-N Chairperson Krishna Prasad Bhandari urged the government not to permit the production of items harmful to public health.  

    In a case where the Supreme Court issued a directive to control tobacco products, CAC-N raised concerns that granting licenses to such industries would constitute contempt of court. President Bhattarai stated that the campaign has also urged Prime Minister K.P. Sharma Oli to take the issue seriously for the protection of public health and property, and urged Minister Bhandari to immediately halt the license distribution process. 

    CAC-N said allowing such industries to operate is troubling and has called for a reversal of the decision, stating that it benefits only a few industrialists.

  • BAT Hosts Annual General Meeting

    BAT Hosts Annual General Meeting

    At its 2025 General Meeting, British American Tobacco (BAT) announced that its sales had fallen by 5.2% as reported in 2024, although has risen 1.3% organically. The company presented its updated strategy based on three pillars: quality growth, a sustainable future, and a dynamic company.

    “2024 was an investment year for BAT, with delivery in line with our guidance,” Luc Jobin said in BAT’s chair address. “I was pleased to see another solid performance in our new categories business. New categories’ contribution increased by £251 million, on an adjusted organic basis at constant currency rates, and category contribution margin is now at 7.1%.”

    BAT said it would continue its strategy towards a smoke-free world, aiming for a largely combustion-free business by 2035. Smokeless products now account for 17.5% of sales, with 29.1 million adult consumers. For 2025, BAT expects 1% sales growth, with its adjusted operating profit up by between 1.5% and 2.5%, with an unfavorable exchange rate effect. The company is targeting 3%-5% growth in sales for 2026, with adjusted profit up 4%-6%. The £900m share buyback program and a 2% increase in its dividend have been confirmed.
    The Board announced the addition of Soraya Benchikh as Chief Financial Officer and Uta Kemmerich-Keil as an independent director.

  • Altria to Host Webcast of 2025 First-Quarter Results

    Altria to Host Webcast of 2025 First-Quarter Results

    Altria Group, Inc. will host a live audio webcast April 29, 2025, at 9 a.m. EST to discuss its 2025 first-quarter business results. Altria will issue a press release containing its business results at approximately 7 a.m. the same day. The webcast can be accessed at altria.com.

    During the webcast, Billy Gifford, Altria’s Chief Executive Officer, and Sal Mancuso, Altria’s Chief Financial Officer, will discuss the Company’s 2025 first-quarter business results and answer questions from the investment community and news media.

    The webcast will be in a listen-only mode. Pre-event registration is necessary; directions are posted at www.altria.com/webcasts. An archived copy of the webcast will be available on altria.com.

  • E.P. Carrillo Rebrands to Casa Carrillo

    E.P. Carrillo Rebrands to Casa Carrillo

    In 2009, Ernesto Perez-Carrillo and his family opened the EPC Cigar Co., which was later changed to E.P. Carrillo. The company announced today (April 10) that it will now be called Casa Carrillo, which is also the name of its main factory in Santiago, Dominican Republic.

    The company said this is a rebrand, “a move that unites its U.S. headquarters, factory, and global presence under one name that reflects both its heritage and its vision for the future.”

    The company is a two-time Cigar of the Year winner by Cigar Aficionado that makes brands such as Pledge, Inch, and Encore.

  • U.S. Premium Cigar Imports Top 430M

    U.S. Premium Cigar Imports Top 430M

    The Cigar Association of America (CAA) released its annual report today, indicating that U.S. imports of handmade, premium cigars rose 0.9% last year, going from 426.3 million in 2023 to 430 million in 2024. It appears that the pandemic created a second cigar boom, as imports have exceeded 400 million units for four years in a row, a 27% increase from 2019’s 338 million cigars. The market has cooled slightly, however, from its record years of 2021 and 2022, where imports were 453.9 million and 464.5 million, respectively.

    Nicaragua accounts for 58.8% of U.S. cigars, shipping 253.1 million cigars in 2024, a 2.7% increase over the previous year. The Dominican Republic shipped 106 million cigars, a 1.8% decrease from 2023, followed by Honduras’ 67.4 million cigars, a 3.3% increase. Those three countries account for 99% of the U.S. cigar supply.

    Costa Rica saw a 44.9% jump in the number of cigars it sends to the U.S., and at 2.5 million units is the only other producer to top the 1 million mark.

    The CAA generates this data from the U.S. Census Bureau, the U.S. Customs Services, and from cigar companies themselves. The numbers include estimates that remove large, machine-made cigars from the premium category.

  • Cyprus Cigar Shortage Nearing End

    Cyprus Cigar Shortage Nearing End

    Retailers in Cyprus have been assured that the nation’s cigar shortage, particularly cigarillos, will soon come to an end. Phileleftheros reported that for the last month consumers were finding the most popular brands out of stock, leading them to purchase alternative brands, which led to depleted stocks across the board. Customers even resorted to calling stores in advance to reserve cigars and cigarillos.

    This past year saw limited availability of cigars and cigarillos from Cuba, from which Cyprus imports more than half of its product. Cuban cigars account for €41 million of the €52 million of cigars Cyprus imports. A second factor in the shortage came from changes implemented by the European Union regarding the traceability of tobacco products. Starting in 2020, these changes were applied to cigarettes, and from last year, cigars and cigarillos were also included. According to the new regulations, the packaging of these products must feature a unique marking that must be scanned with every transaction.

    However, both of these issues appear to have been resolved. Phileleftheros learned that large shipments of cigars and cigarillos have already been imported into Cyprus, and these products are expected to be back on the shelves beginning today (April 7).

  • Esse Cigarettes Power KT&G’s Global Push

    Esse Cigarettes Power KT&G’s Global Push

    KT&G’s ultra-slim cigarette brand, Esse, continues to enjoy strong and steady demand in the Middle East and Central Asia — emerging as one of South Korea’s fastest-growing processed food exports in the first quarter of this year, according to the company.

    According to data released by the Ministry of Agriculture, KT&G’s cigarette exports rose 14.5% year-on-year during the January–March period, ranking second in export growth behind ramyeon, which saw a 27.3% increase.

    “In the Gulf Cooperation Council (GCC) region, including the UAE, the Korean Wave has played a major role in boosting interest in slim cigarettes made in Korea,” said an official from the Agriculture Ministry. “At the same time, exports to Commonwealth of Independent States (CIS) countries, such as Russia and Mongolia, have also grown, fueling further momentum.”

    KT&G’s cigarette exports to GCC countries reached $49 million in the first quarter, marking an 83.6 percent year-on-year increase. Exports to CIS nations more than doubled to $29 million over the same period. Among these markets, Mongolia stood out, where KT&G’s localization strategies have helped the company capture a market-leading share of over 50%, the company said.

    Last year, KT&G posted 1.45 trillion won ($986 million) in overseas sales, up 28% from the previous year, driven largely by strong cigarette demand. Its cigarette exports alone reached 58.6 billion won ($39.9 million).

    Indonesia remains KT&G’s largest export destination, while Central Asian countries such as Uzbekistan are rapidly emerging as key growth markets. KT&G sold 270 million cigarettes in Uzbekistan last year, ahead of launching a local office there in January. The company has also secured the top market share in Tajikistan and third place in Kazakhstan.

    To meet growing global demand, KT&G is building new manufacturing facilities in Kazakhstan and Indonesia, set to be completed by 2026.  

  • Tobacco Prices Climb in Spain 

    Tobacco Prices Climb in Spain 

    Several popular cigarette brands in Spain went up in price this weekend following a resolution published in the Boletín Oficial del Estado (BOE), Spain’s official state bulletin.

    The updated price list affects shops across mainland Spain and the Balearic Islands. Brands like Marlboro, Chesterfield, Ducal, and Austin are all included, with prices per pack now starting at €4.60 and going up to over €9, depending on the format and brand.

    The rise comes just weeks after other well-known names such as Fortuna, Nobel, L&M and Winston were hit by similar price hikes. It’s part of an ongoing adjustment that’s slowly nudging Spain’s tobacco prices closer to the European average — although for now, they still remain among the lowest on the continent.

    The pricing update also includes cigars and pipe tobacco, with brands like Zino Nicaragua and specialty pipe blends from Musth, Musthave and Tangiers climbing as well. Some pipe tobacco tins are now priced at nearly €22 for 125 grams, while others like Tangiers can hit €35 for a 250 g pouch.