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Category: Business & Finance

  • Ohio Pushed to Up Cigarette Tax by $1.50

    Ohio Pushed to Up Cigarette Tax by $1.50

    In continued sprawl from last week’s “State of Tobacco Control” report from the American Lung Association, Ohio lawmakers are being pushed to raise the state’s cigarette tax by $1.50 per pack. The report was particularly harsh on the Buckeye state, giving it failing grades in the categories of funding for tobacco prevention programs, level of state tobacco taxes, and ending the sale of all flavored tobacco products.

    “Here in Ohio, we are seeing tobacco industry lobbyists working to stop or weaken proven tobacco control policies,” said Kezia Ofosu Atta, Advocacy Director at the American Lung Association. “The tobacco industry is also introducing new products that appeal to youth like e-cigarettes that mimic smartphones, kid-friendly flavors, and flavored nicotine pouches that are heavily marketed by social media influencers.”

    The report stated a 10% increase in cigarette prices can lead to a 4% reduction in consumption among adults and a 7% reduction among youth.

  • BAT Shifts Voting Rights

    BAT Shifts Voting Rights

    British American Tobacco (BAT) announced a change in the voting rights composition involving The Capital Group Companies, Inc., which now holds 15.075429% of the voting rights, up from a previous 14.040509%. This adjustment in holdings indicates a notable change in the company’s stakeholder landscape, potentially impacting its governance and decision-making processes.

    The Los Angeles-based Capital Group is BAT’s largest shareholder, growing from a 13% stake in July 2024 and 14% stake in December 2024.Capital Group is the world’s largest active fund manager, with $2.7 trillion AuM (assets under management).

  • BAT Investor Sells Off £1.2 Billion Stake

    BAT Investor Sells Off £1.2 Billion Stake

    Reinet Investments SCA agreed to sell its 2% stake in British American Tobacco (BAT) for £1.22 billion ($1.49 billion), exiting its long-running position in the company. Reinet said its offering 43.3 million shares in the London-listed group via JPMorgan Chase & Co. priced at £28.20 per share, marking a 3.9% discount to the prior closing level.

    BAT shares fell as much as 2.9% on Tuesday for its sharpest intraday drop since October.

    “A plan by BAT long-term shareholder Reinet to sell its 2% holding in a share placing shouldn’t affect the tobacco company’s commitment to delivering a £900 million share buyback in 2025,” wrote Bloomberg Intelligence analyst Duncan Fox.

    Luxembourg-based Reinet was formed out of Swiss luxury group Richemont in 2008. The tobacco company stake amounted to about one-fourth of Reinet’s net asset value, according to a report last year. Reinet said it intends to use the proceeds from the sale for its “ongoing investment activity.”

  • KT&G Announces New Uzbekistan Subsidiary

    KT&G Announces New Uzbekistan Subsidiary

    South Korea’s leading tobacco manufacturer, KT&G, has established a new subsidiary in Uzbekistan to strengthen its international market presence. This strategic move follows the opening of a local office in 2023, aimed at exporting customized tobacco products under the Esse brand to cater to regional preferences.

    In the previous year, KT&G achieved significant sales milestones, distributing 270 billion cigarettes across 120 countries. This expansion into Uzbekistan is part of the company’s broader strategy to tap into emerging markets and diversify its global portfolio.

    The establishment of the Uzbekistan subsidiary underscores KT&G’s commitment to adapting its product offerings to meet local tastes and regulatory environments. By focusing on customized products, the company aims to enhance its competitiveness and brand recognition in the Central Asian region.

  • BAT Partners with Mali’s State Firm Sonatam

    BAT Partners with Mali’s State Firm Sonatam

    British American Tobacco has entered into an agreement with Mali’s state-owned tobacco company, Sonatam, to produce and distribute BAT’s Dunhill International cigarettes within the country. This collaboration aims to enhance the availability of BAT’s premium products in the Malian market, leveraging Sonatam’s established distribution network. The partnership is expected to strengthen both companies’ positions in the regional tobacco industry.

  • Tesco Reports Record-Breaking Christmas Sales Amid Price Cuts

    Tesco Reports Record-Breaking Christmas Sales Amid Price Cuts

    Tesco, the UK’s largest retailer, delivered its “biggest ever” Christmas performance by lowering festive prices and attracting shoppers from competitors. Tesco’s wholesaler division, Booker, faced challenges with a 2.6% decline in Q3 sales, but improved during Christmas with a 1.4% rise, despite weaknesses in tobacco sales and the fast-food market serviced by Best Food Logistics.

    While Christmas sales were strong, Tesco’s like-for-like growth over the broader third quarter was slower, with a 2.8% increase.

    Looking ahead, Tesco expects full-year adjusted group operating profits to reach £2.9 billion (US$ 3.57bn).

  • KT&G Secures Strong Credit Ratings

    KT&G Secures Strong Credit Ratings

    KT&G has received stable credit ratings from S&P Global and Moody’s, earning an A- and A3 rating, respectively. These ratings reflect the company’s robust position in Korea’s tobacco market, where it leads with a 66.8% share in traditional cigarettes and a 46% share in heated tobacco products as of Q3 2024.

    KT&G stated it remains committed to maintaining a stable financial structure while continuing investments in its core businesses. These efforts aim to sustain its market leadership and solidify its credibility in both domestic and global markets.

  • Vapes Four Times More Profitable for C-Stores

    Vapes Four Times More Profitable for C-Stores

    Vapes are now four times more profitable for convenience stores than traditional tobacco products, according to a University of Edinburgh study. Retailers earn an average profit margin of 37.1% on vape sales compared to just 8.5% on tobacco. The surge in vape popularity has driven a nine-fold increase in weekly vape transactions, jumping from 10 in 2019 to 93 by 2022. Researchers suggest this upward trend has likely continued, signaling a significant shift in consumer preferences.

    Tobacco-related sales have plummeted in recent years, dropping nearly 40% since 2015. Transactions involving tobacco fell from 21% in 2015 to 12.8% in 2022, reflecting a broader decline in smoking rates. Office for National Statistics data shows the percentage of UK adults who smoke has decreased from 16% in 2016 to 12% in 2023.

  • 22nd Century & Smoker Friendly Expand Partnership

    22nd Century & Smoker Friendly Expand Partnership

    22nd Century Group, Inc. and Smoker Friendly have signed a new five-year agreement to expand their collaboration. The deal includes manufacturing 11 existing Smoker Friendly cigarette brands and launching eight new premium products. These additions aim to strengthen Smoker Friendly’s market position by tapping into the growing demand for natural tobacco products.

    The agreement deepens a decade-long partnership between the two companies and secures a significant production volume for 22nd Century’s North Carolina manufacturing facility. The new premium Smoker Friendly brands are expected to occupy a higher-tier market segment, broadening Smoker Friendly’s customer base and increasing sales opportunities for both companies.

    A key aspect of the partnership is the potential introduction of reduced nicotine content products, which align with 22nd Century’s VLN line of non-addictive cigarettes. These products, designed to help smokers control their nicotine intake, represent a growing category in the tobacco market. The companies plan to expand their collaboration further, integrating additional products like filtered cigars and companion VLN brands.

    “Our next focus will be to expand the range of products covered under this agreement as well as our projects currently underway to add VLN companion brands that will help to build out a new category of reduced nicotine content products, creating greater visibility and sales reach for products that use our proprietary tobacco strains containing 95% less nicotine – a level considered to be non-addictive and shown in clinical studies to reduce smoking activity among adult smokers,” said Keelan Gallagher, Vice President Operations at Smoker Friendly.

  • BAT Expands VUSE Presence in Korea

    BAT Expands VUSE Presence in Korea

    BAT Rothmans, the Korean subsidiary of British American Tobacco, announced plans today to accelerate its growth in the country’s vaping market by broadening its product offerings and distribution network.

    The flagship VUSE Go Slim 2ml, initially available in limited districts within Seoul, will now be distributed across all of Seoul, Incheon, and Busan. The device features a transparent mouthpiece for checking liquid levels and a removable battery. To cater to varying preferences, six new flavors have been introduced: Cool Fresh, Pearl Spark, Forest Mix, Dark Smooth, Purple Smooth, and Blossom Smooth.

    The VUSE Go Box 6ml, launched last year, has become popular among adult users transitioning to vapor products. With three times the liquid volume of the VUSE Go Slim and additional features like a boost control button for enhanced flavor, the device is priced competitively at 25,000 won ($17.15).

    The company entered the Korean market 18 months ago, introducing the VUSE Go lineup as the first of its kind in Asia. The brand has gained recognition for its use of high-quality natural nicotine and odor-free technology. “VUSE is dedicated to meeting the diverse needs of consumers by supporting the transition to non-combustible alternatives,” a BAT Rothmans official said. The company aims to strengthen VUSE’s position as a leading vapor brand in Korea by continuing to expand product options and accessibility.