Category: Business & Finance

  • Report Examines Illicit Nicotine Pouch Markets

    Report Examines Illicit Nicotine Pouch Markets

    TobaccoIntelligence’s released its Global Illicit Nicotine Pouch Report 2026 today (October 26), determining that illicit nicotine pouch markets are prevalent in countries with strict regulations, including bans, nicotine-content limits, online sales restrictions, and high taxes.

    Among the findings, the report said Germany, which has a de facto ban on pouches, still has the ninth-largest market in the world, estimated at $195 million. France, despite its ban, is the No. 22 pouch market in the world at $34 million, with fewer than half of French consumers knowing the ban exists.

    “Illicit nicotine pouches are a by-product of rapid growth, fragmented regulation, and limited enforcement, and they affect consumers, governments, and compliant businesses alike,” said Tim Phillips, founder of TobaccoIntelligence. “This report is an attempt to define the nature and scale of the problem. Our role is to provide independent data and analysis, and we hope it supports a better-informed debate.”

  • Philip Morris T&T Warns Vaping Duty Could Fuel Illicit Trade

    Philip Morris T&T Warns Vaping Duty Could Fuel Illicit Trade

    Philip Morris T&T Ltd. has warned that Trinidad and Tobago’s proposed 20% customs duty on vaping devices and e-liquids could increase illicit trade. The measure was announced by Finance Minister Davendranath Tancoo in his Oct. 12 budget presentation and is scheduled to take effect Jan. 1, 2027. The government also plans to prohibit vaping in public places and the sale of vaping products to people under 21.

    Marisa Bernard, corporate affairs manager for Caricom at Philip Morris T&T, said the company supports stronger measures to prevent underage access, including raising the minimum legal age for tobacco and vaping-related purchases to 21. She said the company is still assessing the proposed duty’s commercial impact and called for tax policy to balance revenue objectives, public health goals, and efforts to curb illegal trade.

  • A vape directory is only as strong as the enforcement behind it

    A vape directory is only as strong as the enforcement behind it

    By Jason Carignan

    Pennsylvania has officially begun enforcement for its new vape directory regulation, and nicotine vapes missing from the state list are denoted as contraband subject to seizure. The state joins more than a dozen others in tying market access to a product’s federal premarket review status, and it deserves credit for drawing a clear line between what may be sold and what may not. The harder test starts now. Most of what the directory excludes was already illegal to sell under federal law, and unauthorized products still made up about 69% of e-cigarette sales at mainstream retailers in December 2025.

    Washington has put real resources behind the problem at the border. Congress required the FDA last November to direct at least $200 million toward vape enforcement, including $2 million for a multi-agency task force on illegal imports. In May, Customs and Border Protection, working with the Coast Guard and the Food and Drug Administration, announced the seizure of more than 18 million vapes valued at over $175 million. Ports matter, but a product that clears one still has to be sold somewhere, and the retail counter is where state officials are best positioned to act.

    Retail is also where enforcement is hardest. Authorized products move through a structured distribution chain that is relatively easy to inspect. Unauthorized products tend to surface in tobacco shops, liquor stores and vape retailers, which are far harder to police. Pennsylvania has about 11,000 licensed sellers of other tobacco products, a category that includes vapes, and no directory can inspect any of them. If those sellers conclude that inspections are rare and penalties are manageable, little will change. The market for unauthorized products has persisted through years of federal action, and a new list alone will not end it.

    The cost of weak enforcement falls hardest on the companies that did what the law asked. Manufacturers on Pennsylvania’s list invested tens of millions of dollars on the PMTA requirements to submit their products for FDA review, filed annual certifications, paid fees and posted surety bonds of at least $50,000. They compete against sellers of flavored disposables, which account for most unauthorized sales, and those sellers carry none of those costs. Compliance only pays when noncompliance costs more, and until unlisted sellers are out of business, there is no real growth opportunity for the companies that followed the rules.

    Pennsylvania’s law gives the attorney general real tools, including seizure of unlisted products, civil penalties that escalate to license revocation for repeat violators and unannounced compliance checks. The state should use them broadly. That means prioritizing inspections where unauthorized products are most concentrated, which is independent distributors, tobacco shops, liquor stores and vape retailers, and acting against every unlisted product rather than a handful of visible ones. Lawmakers should also look at penalty levels. A first offense can be negotiated down to the cost of destroying the seized product, which is unlikely to deter a seller who can restock the next week. Fines that exceed the profit from unauthorized sales would change that math. And because the law links the scale of enforcement to what the General Assembly budgets for it, funding will determine whether any of this happens.

    There are fair objections. Stricter enforcement can burden small retailers that are trying to comply, so inspectors should focus first on repeat offenders and high-volume sellers, and the law already requires the state to publish a list of sellers with three or more violations. Enforcement also has limits. It will not by itself stop online or cross-border sales, which is why state action has to work alongside the federal effort at the border.

    Technology can help, but only as a complement. Manufacturers can build verification into products from the factory to the point of use, and I work on that problem every day. Even so, those investments pay off only in a market where unauthorized competitors face severe consequences. Enforcement comes first, and everything else depends on it.

    When Pennsylvania’s inspectors begin their work, the directory will tell them what may be sold. What the state does next will determine whether the companies that played by the rules finally get a market they can compete in.

    Jason Carignan is a founding member of IKE Tech and chief commercial officer of Chemular Inc.

  • PMI Reports Higher Third-Quarter Revenue

    PMI Reports Higher Third-Quarter Revenue

    Philip Morris International reported third-quarter 2026 net revenue of $11.4 billion, up 5.5% from a year earlier, while operating income increased 14.1% to $4.9 billion. Adjusted diluted earnings per share rose 5.4% to $2.36. Shipment volume increased 0.6% to 206.2 billion cigarette-equivalent units, including 2.7% growth in smoke-free products. Smoke-free products accounted for more than 40% of quarterly revenue.

    IQOS heated-tobacco unit shipments rose 1.5% to 41.5 billion, while VEEV e-vapor shipments increased 61.6%. In the United States, ZYN nicotine pouch shipments grew 4.2% to 3.2 billion pouches. PMI raised its regular quarterly dividend 8.8% to $1.60 per share and updated its 2026 adjusted diluted earnings-per-share forecast to $8.29 to $8.44, excluding currency effects.

    Following PMI’s third-quarter results, Reuters reported that the company faces rising cost pressures from the war in the Middle East, including energy-related inflation expected to worsen in the fourth quarter. Strikes in Ukraine have also disrupted operations, and PMI expects the effects to continue weighing on operating income this year. The company said the broader effects on consumers and global costs remain difficult to assess, although the situation is currently manageable.

    Reuters also highlighted slower ZYN growth amid competition from British American Tobacco’s Velo. PMI plans to increase investment in ZYN and transition most of its U.S. nicotine pouch portfolio from 15-pouch to 20-pouch cans. Reuters reported that PMI shares fell 3% in premarket trading following the results.

  • IGEN, Vertex Expand Excise Tax Compliance Integration

    IGEN, Vertex Expand Excise Tax Compliance Integration

    IGEN and Vertex Inc. expanded their collaboration to integrate IGEN’s excise tax calculation capabilities into Vertex’s SAP-certified connector, allowing businesses to manage excise and other indirect taxes within a single transaction flow. The solution is designed for companies in highly regulated industries, including tobacco and oil and gas, and supports enterprises transitioning to SAP S/4HANA. IGEN’s system calculates excise taxes based on products, movements, and regulatory requirements, while Vertex provides sales and use tax, value-added tax, and goods and services tax capabilities.

    The integration is intended to simplify tax reconciliation and audit preparation. IGEN President Ryan Padget and Vertex Chief Strategy Officer Chirag Patel said the companies plan to expand the collaboration, with integrations for additional enterprise resource planning systems planned for the future.

  • Haypp to End Snusnetto Sales After Age-Verification Ruling

    Haypp to End Snusnetto Sales After Age-Verification Ruling

    Haypp Group subsidiary Snusbolaget Norden AB stopped selling tobacco and nicotine products through Snusnetto.se effective Oct. 19, after Sweden’s Supreme Administrative Court declined to hear an appeal concerning age verification for parcel locker deliveries. The decision follows a ruling by the Stockholm Administrative Court of Appeal that geo-located BankID verification at parcel lockers does not meet legal requirements for secure age verification. The closure affects about 500 active customers and is not expected to have a material impact on Haypp Group’s financial results.

    Haypp’s other Swedish e-commerce sites are introducing a new verification system that checks the age of the person opening the parcel locker and collecting the shipment. The rollout began in October and is expected to be completed by the end of the month. The changes do not affect deliveries to staffed collection points, where employees verify recipients’ ages when handing over parcels.

  • JTI Philippines Names Alan Jackson General Manager

    JTI Philippines Names Alan Jackson General Manager

    JTI Philippines appointed Alan Jackson as general manager, where he will oversee the company’s portfolio that includes Winston, Camel, Mevius, LD, Mighty, Nordic Spirit nicotine pouches, and Ploom Aura heated tobacco products. Jackson joined JTI in 2007 and has held leadership positions across several regions, including general manager roles in Tanzania and Canada and vice president of marketing and sales for JTI’s South Asia region.

    JTI Philippines said Jackson will focus on business growth, product innovation, and efforts to combat illicit tobacco trade through cooperation with government and industry stakeholders. The company began operations in the Philippines in 2000 and operates a market office and global services center in Taguig City, a manufacturing facility in Malvar, Batangas, and nearly 40 branch offices nationwide. It employs about 5,500 people.

  • JT to Expand Nordic Spirit Retail Availability in Japan

    JT to Expand Nordic Spirit Retail Availability in Japan

    Japan Tobacco (JT) said it will launch Nordic Spirit Rich Melon Medium nicotine pouches at select tobacco retailers in Japan on Nov. 2. The company will also expand retail availability of three varieties previously sold through its CLUB JT online shop: Cool Mint X-Strong, Sweet Mint Medium, and Sweet Mint Strong.

    Rich Melon Medium features a melon flavor and medium stimulation. Nordic Spirit pouches are manufactured in Sweden and are designed for oral use without combustion.

  • Nelt Group and PMI Renew Serbian Distribution Agreement

    Nelt Group and PMI Renew Serbian Distribution Agreement

    Nelt Group and Philip Morris International signed a new five-year distribution agreement for Serbia, extending a partnership that began in 2014. The agreement covers distribution operations in the Serbian market. Nenad Miščević, Nelt Group’s vice president for the Serbian market, said the renewed agreement continues the companies’ cooperation.

  • PMI Study Puts EU Economic Contribution at €343 Billion From 2021 to 2025

    PMI Study Puts EU Economic Contribution at €343 Billion From 2021 to 2025

    Philip Morris International (PMI) contributed nearly €343 billion to the European Union economy from 2021 through 2025, including €22.3 billion in spending with European suppliers, €27.4 billion invested across its European operations, and €39.5 billion in exports, according to an economic footprint study prepared by EY-Parthenon and released Oct. 15. The study also found that PMI’s European value chain supported nearly 164,000 jobs in 2025, including about 22,500 direct jobs, and that the company invested €422 million in research and development in Europe. PMI reported an additional approximately €2.2 billion in R&D activities in Switzerland.

    PMI said the figures reflect its manufacturing, supply-chain, research, and commercial activities across the region. The company reported that more than half of its net revenues in Europe came from smoke-free products in the fourth quarter of 2025. Since 2008, PMI has invested more than $16 billion globally in developing, scientifically assessing, and commercializing smoke-free products, including heated-tobacco devices, nicotine pouches, and e-vapor products.

    The report is the second edition of PMI’s EU Economic Footprint Study and covers the period from 2021 to 2025. PMI Europe President Marco Hannapel said the company’s investments and industrial operations contribute to the region’s economic activity and called for regulatory frameworks that support investment and innovation. The full EU Economic Footprint Study is available from PMI.