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Category: Business & Finance

  • Wild Bill’s Breaks into Missouri Market

    Wild Bill’s Breaks into Missouri Market

    Wild Bill’s Tobacco, which has 240 retail stores in Michigan, Indiana, Ohio, and West Virginia, announced the opening of its first store in Missouri. The 1,360-square-foot store is located in Raymore, and according to the company will have one of the largest walk-in humidors in the state.

    Headquartered in Troy, Michigan, and owned by LAMB Ventures, Wild Bill’s recently celebrated its 30th anniversary. The company said it has been anxious to get into the Missouri market and plans to expand around the state.

    “We’re thrilled to bring the Wild Bill’s experience to the Kansas City market, introducing our premium selection and unmatched customer service to a new community,” stated Jon Welzel, Chief Marketing Officer at Wild Bill’s Tobacco. “Raymore is the perfect place to begin our journey in Missouri, and we’re excited to become a part of this vibrant community, with plans to expand in the area for years to come.”

  • Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam is reviewing new tax policies for tobacco products, with experts recommending a gradual tax increase every two years instead of higher annual hikes. The Vietnam Tax Advisory Association (VTCA) has raised concerns that sharp, sudden tax hikes may backfire, leading to higher illicit cigarette trade and reduced tax revenue.

    According to the draft law, the government plans to impose a hybrid tax system on tobacco products, combining the current 75% ad valorem tax with a specific absolute tax increase on each pack of cigarettes. The VTCA submitted its recommendations for two proposed scenarios:

    The first scenario suggests an annual increase of VND 2,000 ($0.08) per pack starting in 2026, leading to a total tax hike of VND 10,000 ($0.40) per pack by 2030.

    The second scenario proposes a VND 5,000 ($0.20) increase in 2026, followed by an additional VND 1,000 ($0.04) increase per year from 2027 to 2029, also culminating in a total increase of VND 10,000 ($0.40) per pack by 2030.

    VTCA has urged policymakers to be cautious, citing examples from other countries where abrupt tax increases led to unintended consequences, mainly that smoking rates didn’t drop as consumers turned to cheaper illicit products.

    If this proposal is not accepted, VTCA has recommended that lawmakers adopt the first scenario, which calls for an annual increase of VND 2,000 ($0.08) per pack starting in 2026, reaching VND 10,000 ($0.40) by 2030.

  • Scandinavian Sales Up, Profits Down

    Scandinavian Sales Up, Profits Down

    Scandinavian Tobacco Group (STG) released its 2024 annual report today, reporting a sales gain of 5.4%, while net profits were down by more than 20%. One of the biggest cigar companies in the world, it saw a 6% sales increase for the year to 9.2 billion Danish kroner ($1.3 billion), compared to 8.7 billion kroner in 2023. Net income, however, dropped for the second straight year to 940 million kroner ($136 million) from 1.2 billion kroner in 2023.

    Last year “was another challenging year with a volatile business environment,” wrote chief executive officer Niels Frederiksen and chairman Henrik Brandt. “The global market for handmade cigars remains dominated by U.S. consumption.” 

    Handmade cigars accounted for 36% of STG’s 2024 revenues, while machine-made cigars and smoking tobacco were 48%.

  • PMI Declares Quarterly Dividend of $1.35 Per Share

    PMI Declares Quarterly Dividend of $1.35 Per Share

    The Board of Directors of Philip Morris International Inc. today (March 6) declared a regular quarterly dividend of $1.35 per common share, payable on April 10, 2025, to shareholders of record as of March 20, 2025. The ex-dividend date is March 20, 2025. For more details on stock, dividends and other information, see www.pmi.com/dividend.

  • Turning Point’s Q4 Beats Estimates

    Turning Point’s Q4 Beats Estimates

    Turning Point Brands published fourth-quarter earnings with an investor presentation on its website yesterday that saw a decrease from last year but exceeded analysts’ expectations. It posted adjusted earnings per share of $0.98, surpassing the consensus estimate of $0.70. Revenue came in at $93.7 million, below the $102.28 million analysts were expecting. Its $104.5 million adjusted EBITDA FY 2024 was a 12.0% increase from 2023.

    For the fourth quarter, Turning Point saw net sales increase 12.8% YoY to $93.7 million, with an adjusted EBITDA of $26.2 million, up 5.3% over prior year. The Zig-Zag segment grew 1.8% while Stoker’s products jumped 25.8%. Turning Point Brands ended the quarter with $46.2 million in cash and $57.4 million available on its revolving credit facility.

    “We were pleased with our fourth quarter and full year 2024 results and the momentum we are seeing across the organization,” said Graham Purdy, President and CEO.

    Looking ahead, the company projects full-year 2025 adjusted EBITDA of $108 million to $113 million. It also expects combined Modern Oral sales of $60 million to $80 million.

    The company’s shares were up 5.60% in premarket trading today following the release.

  • PMI Looking to Sell Off Cigar Biz

    PMI Looking to Sell Off Cigar Biz

    The Economic Times reported today (March 3) that Philip Morris International Inc. is exploring a potential sale of its cigar business in the United States. People familiar with the matter said the company is working with advisers to gauge buyer interest as it seeks more than $1 billion for the asset as the tobacco maker continues its shift toward smoke-free products.

    Although still known for its cigarette brands, PMI is trying to reduce its reliance on traditional tobacco-based products. Currently, 40% of the company’s sales come from smoke-free products, a number expected to reach 67% in the next five years.

    “The cigar business was part of Swedish Match AB, which Philip Morris acquired in a $16 billion deal that was completed in 2023,” Carmen Arroyo wrote for Bloomberg. “That deal, which added Zyn nicotine pouches to its portfolio, helped propel Philip Morris’s transition away from traditional cigarettes.”

    According to The Economic Times, deliberations on the cigar sale are ongoing and there’s no certainty they’ll lead to a sale, their sources said, asking not to be identified for discussing confidential information.

  • Survey: Convenience Stores Expanding OTP Displays

    Survey: Convenience Stores Expanding OTP Displays

    In an editorial for Convenience Store News,editor-in-chief Linda Lisanti talked about the ever-changing tobacco category and encouraged retailers to rethink their “backbar,” the area behind the register. She said in the magazine’s 2025 survey, that half of convenience store operators plan to add more other tobacco product (OTP) SKUs this year and 47% plan to increase the square footage they devote to OTP.

    “Despite the industry’s increasing focus on providing high-quality prepared foods and innovative dispensed beverages, tobacco products are still a crucial part of the convenience store business, comprising roughly 30% of the industry’s annual in-store sales,” she wrote. “As I sit here pondering over the tobacco category, I can’t help but think of the saying, ‘Nothing worth having comes easy’ — because selling tobacco products is anything but easy. It’s a challenging, always-changing business, especially when it comes to regulation.” 

    Lisanti’s article touches on FDA regulation and links to numerous stories written on similar topics.

  • JTI in no Hurry to Launch Vape in Malaysia

    JTI in no Hurry to Launch Vape in Malaysia

    Malaysia’s Control of Smoking Products for Public Health Act 2024 has been implemented in stages since it was first launched in October of last year, dictating what can and cannot be done around the sale and use of tobacco and nicotine products. The next stage will be implemented in April when the display of all tobacco and vape products will be banned at retail shops.

    Speaking at a conference this week, JT International’s (JTI Malaysia) managing director, Juliana Mohd Yahaya, was asked if JTI would be introducing Logic, the company’s featured vape device, to the Malaysian market soon.

    “We are not in a hurry,” she said. “If you look at Malaysia’s vaping industry right now, it is not [fully] regulated yet. What we do not want is [for our vape products] to appeal to minors.

    “Once all of the regulations are in place and [the industry is] brought under control, that’s where we will consider that [launching vape products in Malaysia]. We are a responsible company, and we do not want to be selling our vape products to anyone under 18.”

    Until then, Juliana said JTI is more than happy to focus its efforts on promoting Ploom, its heated tobacco product (HTP), that was launched in Malaysia in January.

     “[Ploom has] performed better than what we expected, I guess, also thanks to the fact that HTPs are not a new category,” she said. “If you look at the industry so far, there has been only one choice [Philip Morris’ IQOS]. But now, we have another alternative that we can give the consumers.”

  • Turning Point Increases Stock Dividend

    Turning Point Increases Stock Dividend

    Yesterday (Feb 26), Turning Point Brands, Inc. declared a regular quarterly dividend of $0.075 per common share. This is a 7% increase over the regular quarter dividend declared in November 2024. The dividend is payable on April 11, 2025, to shareholders of record on the close of business on March 21, 2025.

    TPB’s products are available in more than 220,000 retail outlets in North America, most noted for its Zig-Zag and Stoker’s brands.

  • BAT’s Block Listing Application and Cancellation

    BAT’s Block Listing Application and Cancellation

    Today (Feb. 27), British American Tobacco announced it made an application to the Financial Conduct Authority and the London Stock Exchange for a block listing totaling 1.5 million ordinary shares of 25p each to be admitted to the equity shares category of the Official List and to trade on the main market of the London Stock Exchange.

    The shares will be issued pursuant to the BAT Sharesave Scheme. Upon issuance, the shares shall rank equally with the existing issued shares of the company. The admission of the shares is expected on March 3, 2025.

    BAT further announced that it currently has 31,189 ordinary shares of 25p each block listed under the British American Tobacco Executive Share Option Scheme. No allotments have been made under the Scheme since the last block listing return was released Jan. 1, 2025. All outstanding options under the Scheme have now been exercised and the Scheme has closed. As a result, the block listing associated with the Scheme has been cancelled.