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Category: Business & Finance

  • Egypt: Philip Morris Cleans Up Nile River

    Egypt: Philip Morris Cleans Up Nile River

    Image: spiritofamerica

    Philip Morris Misr organized a campaign to clean up the Nile River as part of its social responsibility initiatives, according to Daily News Egypt. The campaign aimed to raise awareness of the importance of protecting the Nile River from pollution and enhancing environmental sustainability.

    “Our corporate strategy is based on implementing and consolidating sustainability standards,” said Ali N. Karaman, managing director of Philip Morris Egypt and Levant. “We are committed to fulfilling our social responsibility by engaging in activities that serve the needs and requirements of the local communities. Philip Morris Misr is keen to organize annual events that promote environmental awareness.”

    The campaign included various activities to collect waste from the Nile River and educate people on proper waste disposal methods, aiming to highlight negative impacts of water pollution.

    Philip Morris has strengthened its commitment to environmental sustainability recently, with plans to make plants carbon neutral by 2030. Philip Morris has made steps toward this goal, installing wind turbines, solar panels and electric vehicle charging stations at its facilities and performing awareness activities on proper disposal of cigarettes.

  • Indonesia: Bentoel Delisted

    Indonesia: Bentoel Delisted

    Image: Yazid Nasuha

    Bentoel International Investama, BAT’s Indonesian unit, has officially been delisted from the Indonesia Stock Exchange (IDX), according to the Jakarta Globe. Bentoel has been listed on the IDX since 1990.

    “IDX approves the removal of the company’s securities listing on the stock exchange, effective on Tuesday,” the IDX announced. “If the company wishes to re-list its shares on the IDX, the process can be carried out under applicable regulations.”

    Bentoel Group has become the fourth-largest tobacco company in Indonesia, following Sampoerna, Gudang Garam and Djarum. The company produced local brands such as Bentoel Biru, Tali Jagat, Bintang Buana, Sejati, Neo Mild and Uno Mild.

    In the first six months of 2023, Bentoel’s revenues were IDR4.31 trillion ($275.5 million), a 27.37 percent increase from the previous year. Net profit in the first semester of 2023 was IDR35.49 billion, up 121.83 percent from the previous year period.

  • Japan Tobacco Appoints Executive Members

    Japan Tobacco Appoints Executive Members

    Image: Andrii Yalanskyi

    Japan Tobacco has appointed new executive members to the board of directors.

    Koji Shimayoshi has been appointed as executive vice president (effective Jan. 1, 2024) and representative director (effective March 22, 2024). Shimayoshi is currently executive vice president of JT International. He joined JT in April 1993.

    Shimayoshi will take the place of Kiyohide Hirowatari, who will become a member of the board, effective Jan. 1, 2024. Hirowatari will resign as member of the board upon conclusion of the 39th annual general meeting of shareholders scheduled for March 22, 2024.

    Hiroko Yamashina and Kenji Asakura have been appointed members of the board, effective March 22, 2024. Yamashina is currently a member of the audit and supervisory board, and Asakura is currently representative director and chairman of Nagase and Co. Ltd. Main Kohda will resign as member of the board, effective March 22, 2024. Emiko Takeishi will also join the audit and supervisory board as a member.

    Igo Dzaja will take on the role of senior vice president of marketing and tobacco business for Japan, effective Jan. 1, 2024. Kazuyuki Inui will take on the role of senior vice president of sales and tobacco business for Japan, effective Jan. 1, 2024. The following executive directors will resign effective Dec. 31, 2023: Eiichi Kiyokawa, Chigusa Ogawa and Shuici Hirosue.

  • PMI Expands IQOS in Middle East

    PMI Expands IQOS in Middle East

    Image: TRITOOTH

    Philip Morris International has launched IQOS Iluma in Saudi Arabia, Kuwait and Bahrain, with a goal of creating a smoke-free future in the Gulf Cooperation Council region, according to the Saudi Gazette.

    “Adult smokers may be unaware of the choices they are making, largely due to the lack of information and knowledge on products that bring them harm, versus scientifically backed products that reduce the likelihood of smoking-related disease,” said Tarkan Demirbas, area vice president of the Middle East at Philip Morris Management Services (Middle East) Limited. “At PMI, we are invested in providing existing adult smokers with better alternatives through harm reduction innovations, which can help them take a step back from cigarettes toward better alternatives.”

    “Smoking-related diseases today call for a pragmatic solution that places consumers at the forefront while moving away from cigarettes,” said Saim Yasin, director of marketing and digital at PMMS. “IQOS Iluma is our latest innovation in tobacco-heating systems that will accelerate our goal toward a smoke-free future. Through a growing portfolio of smoke-free alternatives, we are reaffirming our commitment to create realistic, society-wide change that can reimagine the world we are living in—without cigarettes.”

    The IQOS Iluma series offers three devices: IQOS Iluma Prime, IQOS Iluma and IQOS Iluma One. All the devices use new induction heating technology but offer different designs.

  • KT&G to Buy Back Shares

    KT&G to Buy Back Shares

    Image: Vlad Ispas

    KT&G will spend KRW2.8 trillion ($2.1 billion) to buy back shares and provide dividends to shareholders over the next three years, according to Yonhap News Agency. The company will buy back KRW1 trillion in shares for cancellation and distribute KRW1.8 trillion in cash dividends.

    “Seventy percent of KT&G shareholders are long-term investors who have kept KT&G stocks for more than three years. The government is known to be considering providing incentives to companies which cancel their own shares,” the company said during the Value Day 2023 event.

    KT&G aims to maintain a debt-to-equity ratio in the lower 40 percent range over the next three years. At the end of September 2023, its debt-to-equity ratio was 40.6 percent.

  • BAT Strengthens Organigram Partnership

    BAT Strengthens Organigram Partnership

    Image: weerapat1003

    BAT is investing some £74 million ($91.68 million) in its partnership with Organigram and increasing its equity position from 19 percent to 45 percent.

    This investment is intended to deepen the strategic relationship between Organigram Holdings and BAT, which has strengthened since BAT’s initial investment and the establishment of the Product Development Collaboration (PDC) in March 2021. The PDC was set up to leverage the expertise of both companies in order to develop the next generation of noncombustible cannabis products.

    In a statement, BAT said it has been pleased with Organigram’s performance and continues to be impressed by the careful financial governance of the company. “BAT also remains supportive of the category stewardship displayed by Organigram’s management team, particularly in response to tough market conditions,” BAT wrote. “These factors give BAT confidence that the new investment can position Organigram to capitalize on market opportunities and deliver incremental value for both companies.”

    The majority of the investment will be allocated for Organigram to establish a strategic investment pool, intended to be applied for emerging opportunities within the cannabis space to accelerate Organigram’s growth and to support geographic, technological and product expansion. According to BAT, the investment remains subject to customary conditions, including necessary approvals by the shareholders of Organigram.

    “This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company. In addition, this deepens the strategic partnership between Organigram and BAT, and we look forward to continuing to leverage BAT’s global capabilities and scientific expertise,” said Organigram CEO Beena Goldenberg in a statement.

  • Pacific Cigarette Co. in Voluntary Business Rescue

    Pacific Cigarette Co. in Voluntary Business Rescue

    Image: iridescentstreet

    The Pacific Cigarette Company (PCC) was granted a request to be placed under voluntary business rescue following an assessment by revenue authorities that alleged tax violations and outstanding obligations, leaving the company facing liability in the amounts of USD19.3 million and USD79.8 billion, reports The Herald.

    The tax liability also put the company in an insolvent position, according to the PCC, formerly Savanna Tobacco Company.

    The PCC connects the financial issues to foreign currency challenges faced by Zimbabwe in 2005, when the PCC entered a partnership with the Reserve Bank of Zimbabwe (RBZ) and piloted toll manufacturing to survive the introduction of 50 percent foreign currency surrender requirements on exports.

    “Through toll manufacturing, PCC and other businesses were able to source raw materials from their customers, ensuring their sustainability, while complying with the RBZ’s 50 percent foreign currency surrender requirements,” the company said.

    “Then the Reserve Bank governor promoted toll manufacturing as a durable business model for companies facing similar foreign currency challenges.

    “Since then, the toll manufacturing model has been our accepted raw material funding model, removing the need for PCC to finance the working capital for export raw materials.

    “In June this year, without any notice, Zimra performed a spectacular U-turn that has undermined the stability of the business and deemed the raw materials funded by our customers as income, subject to VAT,” according to the PCC.

    “They also levied an arbitrary markup and interest penalties on PCC for the tax assessment period 2018 to 2020, to which we have objected.

    “The issued tax assessments against the company impose tax liabilities amounting to USD19.3 million and USD79.8 billion.” The PCC alleges that Zimra garnished all its bank accounts. “Next, Zimra took the unprecedented step of instructing our customers to pay Zimra any monies owed to PCC, effectively closing off all the company’s income streams.

    “In an effort to get the garnish lifted, PCC submitted a payment plan proposal while awaiting the determination of the objection, which payment plan was rejected by the tax authority,” said the PCC.

    “Zimra’s unprecedented actions on false tax violations have regrettably placed PCC in an insolvent position, forcing the company’s directors to place the business under voluntary business rescue to safeguard the interests of all creditors and stakeholders whilst the company continues to try and amicably resolve the matter with the tax authority.

    “PCC applied to be placed under voluntary business rescue on Oct. 2, 2023, and the Master of the High Court Oct. 4, 2023, appointed Mr. Reuben Mukavhi of Rubaya-Chinuwo Law Chambers Legal Practitioners as the corporate business rescue practitioner,” according to the company.

    “The Zimbabwe Revenue Authority is not in a position to comment in the public domain on the tax affairs of an individual taxpayer as the law through the preservation of secrecy protects clients’ right to confidentiality,” Zimra said.

    The PCC is Africa’s second-largest indigenous tobacco company and Zimbabwe’s first locally owned cigarette company.

  • PMI Joins We Card

    PMI Joins We Card

    Image: Tobacco Reporter archive

    Philip Morris International has joined the We Card Program, a national nonprofit serving the nation’s retailers of age-restricted products. The company’s Swedish Match affiliate will serve on We Card’s manufacturer advisory council.

    Independent retail establishments and large retail chains utilize We Card’s educational and training services for their compliance efforts with federal, state and local laws aimed at preventing age-restricted product sales to minors.

    National and state retail trade associations, government officials, community groups and others also support We Card’s ongoing efforts to raise awareness of responsible retailing and age verification requirements and to educate and train retail employees to identify and prevent underage attempts to purchase age-restricted products.

    “As we enter the U.S. market, our ambition is twofold: to be the market leader across America for innovative smoke-free products that are a better choice than continued cigarette use and to ensure that youth cannot access these products, which are intended only for adults who smoke or use another nicotine product,” said Stacey Kennedy, president of the Americas and CEO of the PMI U.S. business. “Joining We Card reflects the commitment shared by PMI and Swedish Match to further enhance youth access prevention programs in close cooperation with our retail partners.”

    “The We Card Program has long been a vital tool for retailers, and we look forward to working with them to expand the program’s suite of tools to reflect the growing range of innovative nicotine products, including oral pouches,” Kennedy added.

    “We Card is pleased to have Swedish Match join our manufacturer advisory council. This will help us further our mission to prevent underage access to nicotine products and work to address the problem of the social sourcing of those products,” said Doug Anderson, president of the We Card Program.

  • Reynolds Expands American Snuff Facility

    Reynolds Expands American Snuff Facility

    Image: Reynolds

    Reynolds American Inc. announced the opening of the recently expanded American Snuff Company (ASC) operations facility in Clarksville, Tennessee. The investment in the facility will position the company for future growth and has already added over 70 roles to the facility’s workforce, with plans to add more in the coming months.

    ASC celebrated the newly enhanced space with a ribbon-cutting ceremony on Tuesday, Sept. 26, 2023. ASC’s significant investment in the property will increase certain production capabilities, optimize existing processes and allow for the installation of additional processing and packaging lines.

    “American Snuff Company has a long history of operations in Clarksville, and we are proud to further invest in our workforce and production capabilities at the site,” said David Waterfield, president and CEO of Reynolds, in a statement. “This expansion and considerable investment reflect our focus on delivering long-term, sustainable growth for the future of our business.”

    The site will further accommodate research and development and create capacity for additional shipping, receiving and tobacco curing. Additionally, the expanded site will include modernized quality labs, maintenance shops and employee areas.

    The Clarksville site expansion follows a strategic review of Reynolds’ U.S. operations that spanned several years. Historically, the facility used processed tobacco from regional farmers before being sent to other ASC factories for production. This move will bring processing and finished goods production under one roof.

    ASC Clarksville is the Reynolds organization’s second-largest production facility in the U.S.

  • France’s Last Cigarette Factory Closing

    France’s Last Cigarette Factory Closing

    Image: Smeilov

    The last cigarette-making factory in France is set to close by the end of the year, according to the site’s owner, reports The Straits Times.

    The Manufacture Corse des Tabacs (Macotab) is located in Corsica, and it manufactures cigarettes for Philip Morris, which recently ended the contract.

    The factory is owned by SEITA, the former French monopoly. Now, around 30 employees work at the factory, down from 143 in the 1980s.

    In 2019, SEITA closed France’s tobacco processing factory located in the traditional growing region of the Dordogne.

    Legislation to reduce smoking and its related health issues has led to reductions in cigarette sales. Majority of European tobacco product production takes place in Germany and Poland.