Category: Business & Finance

  • Helme Tobacco Returns

    Helme Tobacco Returns

    Photo: Burtsc

    Swisher announced a rebrand of its smokeless tobacco portfolio with the return of the historic Helme Tobacco Co.

    The company’s smokeless division previously fell under the Fat Lip Brands umbrella and comprises 24 individual brands, including Kayak moist snuff tobacco, Starr loose leaf chew tobacco and Navy dry snuff.

    The Helme Tobacco Co. name traces its roots back to the 1880s and founder George W. Helme, who established the snuff and chewing tobacco company in Helmetta, New Jersey, USA. By 1925, Helme was reportedly the world’s largest snuff maker. The Helme Tobacco Co. and its products became part of the Swisher family of products and brands in 1986. Swisher later branded its smokeless tobacco portfolio under Fat Lip Brands and now rebrands that portfolio under the Helme name.

    While Swisher’s corporate headquarters is based in Jacksonville, Florida, the Helme Tobacco Co. smokeless division is located in Wheeling, West Virginia.

    “This year is a historic one for Swisher as we celebrate 100 years of continuous operations in Jacksonville, Florida. We believe now is the perfect time to reintroduce this historic and prominent smokeless tobacco name to adult consumers,” said Swisher President and CEO Neil Kiely. “The Helme name is synonymous with high-quality products and reflects the unwavering commitment of the Wheeling, West Virginia team.”

    The following brands will now fall under the Helme Tobacco Co. name:

    Kayak, Creek and Gold River moist snuff tobacco; Starr, Bowie, Chattanooga Chew, Lancaster and Mailpouch chewing tobacco; and Buttercup, Checkerberry, Dixie Sweet, Honey Bee, Lorillard, Navy, Railroad Mills, Ralphs, Society, Square, Starr, Strawberry, Superior, Three Thistle, Tops and Wild Cherry dry snuff.

  • Stop & Shop to Stop Selling Tobacco

    Stop & Shop to Stop Selling Tobacco

    Credit: Flickr

    This month, Stop & Shop stores will discontinue the sale of all tobacco products, aligning with other major chains that have already ceased cigarette sales.

    The grocery retailer with 360 stores across Massachusetts, Rhode Island, Connecticut, New York, and New Jersey plans to end sales of all tobacco products at all stores by August 31 as a part of the brand’s commitment to community wellness. The changes are part of its “dedication to community wellness” and will discontinue the sale of all cigarettes and tobacco products on Saturday, August 31.

    “Our responsibility as a grocer goes far beyond our aisles, and we are committed to taking bold steps to help our associates, customers, and communities work towards better health outcomes,” said Gordon Reid, Stop & Shop president, in a statement, according to a press release.

    Public health advocates have long urged retailers to stop selling tobacco products, and some cities and states have also banned tobacco sales in pharmacies. The American Cancer Society responded that it was “pleased to partner” with Stop & Shop to end sales.

    “This is a step in the right direction toward ending Big Tobacco’s influence on kids, and we know even more can be done to reduce the toll of tobacco in our communities,” said Karen Knudsen, CEO of the American Cancer Society and the American Cancer Society Cancer Action Network, in the statement. “We urge state lawmakers to prioritize tobacco control program funding so that those inspired to quit by this effort have the resources they need to help them succeed.”

    Previously, Walmart in 2022 announced it would stop selling cigarettes at some of its US stores. In 2014, CVS stopped selling tobacco, saying it was “inconsistent with our purpose” as a health care provider. Target ended tobacco sales in 1996.

  • PMI to Further Expand U.S. Zyn Production

    PMI to Further Expand U.S. Zyn Production

    Photo: PMI

    Philip Morris International’s Swedish Match affiliate will invest $232 million to expand the production capacity of its Owensboro, Kentucky, USA, manufacturing facility, which produces the popular Zyn nicotine pouches.

    The expansion is expected to create an additional 450 direct jobs with an ongoing annual economic impact of $277 million and 410 indirect jobs for the Commonwealth of Kentucky.

    “Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region,” said Kentucky Governor Andy Beshear in a statement.

    Construction of the expanded facility is already underway, including adding more production space. Progressive production increases are expected during the project, which is targeted for completion by the second quarter of 2025. The construction phase alone is expected to create nearly 2,800 jobs and have an economic impact of about $414 million.

    In addition to facility expansion and ongoing optimization of processes to increase capacity progressively over the coming quarters, the Kentucky facility will move from a 24-hour, five-days-per-week schedule to a 24-hour, seven-days-per-week schedule to boost production, starting in the fourth quarter of this year.

    The Swedish Match Owensboro facility currently has about 1,100 employees. The ongoing expansion of the facility in Kentucky is expected to provide around 900 million cans of capacity by 2025.

    In July, PMI announced an investment of $600 million over the next two years through its U.S. affiliate to open a nicotine pouch manufacturing facility in Aurora, Colorado. The Aurora facility and Owensboro expansion are designed to provide the capacity needed in the near term and midterm to meet the ferocious U.S. demand for Zyn.

  • Ispire Partners With Hidden Hills

    Ispire Partners With Hidden Hills

    Photo: Africa Studio

    Ispire Technology and Aspire North America have signed a global licensing agreement with the U.S. lifestyle brand Hidden Hills Club.

    Under the agreement, Ispire will globally manufacture, distribute and commercialize Hidden Hills’ branded nicotine products, including reduced-risk e-cigarettes. The initial Hidden Hills nicotine products are scheduled to roll out in the United Arab Emirates and South Africa in the coming weeks, followed by the United Kingdom and European Union over the next few months.

    “Our partnership with Hidden Hills Club enables us to bring more innovative and reduced-risk nicotine products to a global audience,” said Ispire Co-CEO Michael Wang.

    “The 30-year exclusive license will allow us to make significant investments in the Hidden Hills brand, ensuring robust distribution and a deep product portfolio that captures the essence of this iconic lifestyle brand. Hidden Hills’ popularity as a lifestyle brand—encompassing apparel, clothing and cannabis and hemp products—has grown at an exponential rate over the last two years. Partnering with Hidden Hill will help Ispire to capture this west-coast culture and energy, and infuse it into its nicotine product offerings globally, under the Hidden Hills brand flag.”

    “Teaming up with Ispire was a strategic decision for us,” said Hidden Hills Club CEO Dre Liang. “Ispire’s expertise in vaping technology and its global distribution network provide the perfect platform to expand our brand into the nicotine products market. We believe this collaboration will redefine the market with products that reflect our brand’s commitment to quality and innovation.”

  • PMI and KT&G to Partner on Submissions

    PMI and KT&G to Partner on Submissions

    Photo: KT&G

    Philip Morris International and KT&G will collaborate on regulatory submissions for KT&G heat-not-burn products in the United States. The companies have signed a memorandum of understanding.

    On Jan. 30, 2023, PMI obtained exclusive rights to commercialize KT&G’s smoke-free products outside South Korea.

    KT&G’s new platform products are expected to be launched first outside the U.S. Thereafter, the partners plan to work on a premarket tobacco product application submission for review by the U.S. Food and Drug Administration.

    “We want every adult smoker who does not quit smoking to switch to a science-backed, better alternative for the benefit of their own and public health,” said PMI CEO Jacek Olczak in a statement.

    “The heat-not-burn category, with different tiers of FDA-authorized products, has a pivotal role to play in making cigarettes obsolete in the U.S.”

    KT&G “is currently pursuing global expansion and structural transformation centered on its three core businesses—next-generation products, overseas cigarettes, and health supplements,” said KT&G President Bang Kyung-man in a statement.

    “We will do our utmost to achieve our future vision of becoming global top-tier by leveraging innovative NGP products and scientific R&D capabilities that will be introduced to overseas markets.”

  • Eastern Sells Factory to PMI

    Eastern Sells Factory to PMI

    Image: Stephen Finn

    Eastern Co. will sell the land, buildings and currently rented equipment of its Factory No. 9 to United Tobacco Co. (UTC), a subsidiary of Philip Morris International, for EGP1.58 billion ($32.66 million), reports Ahram Online.

    According to an Eastern Co. statement to the Egyptian Exchange, the sales price was the average of three valuations offered by valuation companies.

    As part of the deal, UTC will waive its right to recollect the remaining annual rent value of the factory that was paid in full according to the rent contract that ends on April 26, 2026.

    Egypt is in the process of privatizing many state-owned companies. The government hopes to earn $5 billion from this program.

    In November 2023, Egypt’s Ministry of Public Enterprise sold a 30 percent stake in Eastern Co. to the United Arab Emirates’ Global Investment Holding Co. for EGP19.34 billion.

    In May 2024, PMI acquired an indirect 14.7 percent stake in Eastern Co.

  • KTI to Make and Distribute KT&G Products in Europe

    KTI to Make and Distribute KT&G Products in Europe

    Photo: KTI/KT&G

    KT International (KTI) will be manufacturing and distributing KT&G’s products in Europe.

    Under the terms of an Oct. 20, 2023, agreement, KTI will have exclusive rights to manufacture and distribute KT&G’s products within the EU for three years. KT&G and KTI have agreed to a market entry plan aimed at expanding into strategic markets within the Western European region, with an initial focus on KT&G’s flagship Esse brand, which is the world’s bestselling super-slim cigarette.

    “We are delighted to join hands with KTI, a company with a robust footprint across Europe. Having already established a strong market presence in Asia, AMEA and Latin America, we believe that the agreement with KTI will serve as a pivotal step in accelerating our footprint across Europe,” said Chad Sul, general manager of KT&G’s Europe office.

    “After three years of collaborative efforts leading to the signing of this agreement, we see a strong cultural fit between our two companies. Also, we expect the synergy between our complementary brand portfolios to strengthen the market position of both companies. A significant amount of time had been taken to structure a competitive business model and to develop an innovative and consumer relevant product portfolio that is consistent to the global objectives and standards of KT&G. We thus look forward to a long and fruitful partnership between our companies,” said Stuart Buchanan, chief commercial officer of KTI.

    KT&G is a leading tobacco manufacturer in South Korea and the fifth-largest in the world by sales volume, with an annual sales revenue of approximately KRW6 trillion ($4.34 billion). Established in 2008, KTI is one of Europe’s fastest growing independent tobacco companies.

  • Imperial Certified as Great Workplace

    Imperial Certified as Great Workplace

    Image: Ricochet64

    Imperial Tobacco Canada has been certified as a Great Place to Work.

    “We are immensely proud of this recognition, especially that it comes directly from feedback received by our employees. We put enormous efforts into creating an environment where we can all shine and achieve our full potential,” said Frank Silva, president of Imperial Tobacco Canada. “We face many challenges in our business, but we do so together, and our people know that we will always do the right thing.”

    To achieve this certification, Great Place to Work surveyed all 500 employees of Imperial Tobacco Canada. This employee-led certification is based on employees’ direct feedback as part of an extensive and anonymous survey about their workplace experience, which measures the level of trust that employees experience in their leaders, the level of pride they have in their jobs and the extent to which they enjoy their colleagues.

    “This certification reflects our ongoing efforts to prioritize employee satisfaction, well-being and professional development. We remain committed to fostering an inclusive environment where every team member feels valued and empowered to contribute their best work. This achievement inspires us to continue our journey toward excellence in workplace culture, ensuring that we remain a preferred employer of choice in our industry,” said Lito Charet, vice president of human resources and inclusion.

  • PMI Accused of ‘Manipulating Science’

    PMI Accused of ‘Manipulating Science’

    Image: Xistudio

    Philip Morris International has been accused of “manipulating science for profit” through funding research and advocacy work with scientists, according to The Guardian.

    Leaked documents from PMI and its Japanese affiliate revealed plans to target politicians, doctors and the 2020 Tokyo Olympics as part of the company’s marketing strategy to attract nonsmokers to its IQOS heated-tobacco product. Japan is a launch market for IQOS.

    A Tobacco Control Research Group paper from the University of Bath stated that Philip Morris Japan (PMJ) funded a Kyoto University study into smoking cessation via a third-party organization. The researchers found no public record of PMJ’s involvement, however. According to a PMI spokesperson, the company’s involvement was attributed when the results were presented at a scientific conference in Greece in 2021.

    PMJ reportedly paid £20,000 ($25,287.48) a month to FTI-Innovations, which is a life sciences consultancy run by a professor from Tokyo University. The payments were for tasks like promoting PMI’s science and products at academic events, which, according to an internal email, a PMJ employee claimed they had been told “to keep it a secret.”

    The paper, which was published in Nicotine & Tobacco Research, is based on 24 leaked company documents from between 2012 and 2020.

    “These activities resemble known strategies to influence the conduct, publication and reach of science and conceal scientific activities,” the researchers said.

    “The manipulation of science for profit harms us all, especially policymakers and consumers trying to make potentially life-changing decisions,” said Sophie Braznell, one of the paper’s authors. “It slows down and undermines public health policies while encouraging the widespread use of harmful products.”

    The leaked documents undermined PMI’s claims to conduct “transparent science,” according to Braznell, who called for reforms to funding and governance of tobacco research “to protect science from vested corporate interests.”

    In a different report from Stopping Tobacco Organizations and Products (STOP), also based on leaked documents, PMJ appeared to lobby for IQOS to be permitted in places where smoking was banned.

    Entities like medical and hospitality groups and Japan’s Fire and Disaster Management Agency were targeted for endorsements, “which, if secured, could give the appearance of organic, widespread acceptance of IQOS,” said STOP.

    Moreover, the report stated that aiming for a presence at the Tokyo Olympics “echoes a known industry tactic of advertising addictive, harmful tobacco products at sports events—associating these products with health, misleading consumers and reaching children and young people.”

    “PMI’s intentions with IQOS seem to extend far beyond what they’ve stated,” said Jorge Alday, director of STOP. “This revelation adds weight to the mounting evidence questioning the credibility of PMI’s claims about their intentions and their products.

    “Disturbingly, it hints at a broader pattern of deceptive tactics, potentially laying the groundwork for a new chapter in the tobacco epidemic,” he said.

    “This is yet another specious story from an organization more interested in criticizing our company than helping reduce the harm from cigarettes,” said a PMI spokesperson. “Like any highly regulated multinational company, PMI regularly seeks to share our positions on issues that affect our consumers, our company and our communities. Not only is this type of engagement entirely legal and appropriate, [but] it is essential to the type of inclusive policymaking that will lead to better outcomes for the people affected by those policies.”

  • 22nd Century Eliminates $2.3 million of Debt

    22nd Century Eliminates $2.3 million of Debt

    22nd Century Group has entered into a binding letter of agreement to eliminate an additional $2.3 million in outstanding debt with JGB Capital.

    Under the terms of the agreement, the company and JGB Capital will exchange an aggregate of $2.3 million in principal, fees and expenses owed to JGB Capital for consideration of approximately 1.375 million shares of the company’s common stock and prefunded warrants. Additionally, the company will defer monthly amortization payments for an additional two months, resulting in no required further principal repayment until August 2024.

    “This agreement with JGB is another significant step in restoring strength to our balance sheet as we work toward becoming debt-free,” said 22nd Century Group chairman and CEO Larry Firestone in a statement.

    “This transaction also preserves our cash resources for commercial use as we work to become cash flow positive by the first quarter of 2025. We have made substantial progress on our commercial programs, including refining our revenue mix, implementing a lean operating cost profile and positioning the company to win new contracts, including the new CMO and distribution agreements announced recently, which are already advancing our sales in the second quarter.”