Category: Cigars

FDA 'messing' with cigars
The US Food and Drug Administration has issued an advance notice of proposed rulemaking (ANPRM) seeking comments and scientific data related to the patterns of use and resulting public health impacts of ‘premium’ cigars.
In a note issued through its Center for Tobacco Products (CTP), the agency said it was specifically requesting comments and information not previously submitted in response to its proposed deeming rule.
Submissions, it is said, will be used to inform the agency’s regulatory policies.
The note said that, in 2016, the FDA had finalized the deeming rule extending its authority under the Family Smoking Prevention and Tobacco Control Act to tobacco products not already under its authority, including e-cigarettes, cigars, pipe tobacco and hookah tobacco, among others. The rule included provisions making the sale of these products subject to a range of requirements, such as mandatory age and photo-ID checks to prevent illegal sales to minors; warning statements; submission of health documents; and the prohibition on marketing modified risk products without an FDA order in effect.
‘When proposed, the deeming rule put forth two, alternative regulatory options, one of which would have excluded so-called “premium” cigars from FDA regulation,’ the note said. ‘After carefully considering the public comments on the rule, FDA concluded all cigars pose serious negative health risks, and the evidence did not provide a public health basis for FDA to exclude any type of cigars from regulation.’
Mitch Zeller, director of the FDA’s CTP, said all tobacco products, including ‘premium’ cigars, remained subject to manufacturing, distribution and marketing oversight by FDA.
“However, given the ongoing interest from many parties on this issue ‒ as well as the potential for new data on the topic since the deeming rule published ‒ we’re providing stakeholders an opportunity to submit relevant new information that could inform FDA’s regulation of ‘premium’ cigars.”
Through the premium cigars ANPRM, the agency is requesting comments, data, research results, or other information not submitted in response to the proposed deeming rule on topics including, but not limited to:
- ‘The definition of ‘premium’ cigars;
- Use patterns of ‘premium’ cigars generally and among youth and young adults specifically;
- Public health considerations associated with ‘premium’ cigars, including the health effects;
- Studies or information regarding consumer perceptions of the health risks of ‘premium’ cigars; and
- Studies or information on whether any applicable manufacturing, marketing, sale, distribution, advertising, labeling, and/or packaging requirements and restrictions should be applied differently to ‘premium’ cigars compared to other tobacco products, including other cigars.’
The ANPRM will be available for comment from March 26 through June 25.
The ANPRM is one of three previously announced in July 2017 as part of FDA’s comprehensive plan on nicotine and tobacco regulation,’ the note said. ‘Earlier this month, FDA published the other two ANPRMs, “Tobacco Product Standard for Nicotine Level of Combusted Cigarettes” and “Regulation of Flavors in Tobacco Products”.
‘The comprehensive plan serves as a multi-year roadmap to better protect kids and significantly reduce tobacco-related disease and death.’
March 26, 2018
SM snus volumes up
Swedish Match’s volume shipments of snus in Scandinavia during the 12 months to the end of December, at 247.6 million cans, were increased by three percent on those of the year to the end of December 2016, 241.3 million cans.
But despite the volume increase, SM’s share of Sweden’s snus market fell by 2.1 percentage points, from 67.3 percent during 2016 to 65.2 percent during 2017. And it’s share of Norway’s snus market fell by 1.4 percentage points to 52.1 percent.
Meanwhile, SM’s volume shipments of moist snuff on the US market during 2017, at 127.4 million cans were down by three percent on those of 2016, 131.4 million cans.
Also in the US, the company’s volume shipments of cigars in 2017, at 1,629 million, were increased by 11 percent on those of 2016, 1,472 million.
But, during the same period, volume shipments of chewing tobacco, excluding contract manufacturing volumes, at 6,341,000 pounds, were down by five percent from 6,709,000 lb.
SM’s worldwide shipments of matches during 2017, at 65.0 billion sticks, were down by 10 percent on those of 2016, 72.0 billion sticks.
During the same period, worldwide shipments of lighters fell by eight percent from 399.2 million to 368.1 million.
In announcing its results, SM said that, in local currencies, sales had increased by six percent for the fourth quarter and by thee percent for the full year. Reported sales had increased by two percent to SEK4,044 million for the fourth quarter and by four percent to SEK16,101 million for the full year.
In local currencies, operating profit from product areas (excluding larger one-off items and a share of the net profit of the Scandinavian Tobacco Group [STG] in 2016) increased by 15 percent for the fourth quarter and by five percent for the full year. Reported operating profit from product areas increased by nine percent to SEK1,044 million for the fourth quarter and by six percent to SEK4,218 million for the full year.
Operating profit amounted to SEK1,179 million for the fourth quarter and to SEK4,591 million for the full year.
Profit after tax amounted to SEK904 million for the fourth quarter and to SEK3,400 million for the full year.
Earnings per share amounted to SEK5.10 for the fourth quarter and to SEK18.88 for the full year. Earnings per share excluding larger one-time items, dividends from STG in 2017 and share of net profit in STG in 2016 increased by 17 percent to SEK4.24 for the fourth quarter and by 14 percent to SEK16.39 for the full year.
“I am very pleased with Swedish Match’s performance in 2017 – a year of solid growth, with higher sales and operating profit from product areas,” said CEO Lars Dahlgren.
“Investments that we have made within our consumer insights and R&D functions have strengthened our portfolio of smokeless offerings, and we have supplemented organic efforts through acquisitions.
“In recent years, global tobacco competitors have signaled a shift in their strategic agendas to acknowledge the role of less harmful alternatives. With our vision of a world without cigarettes and long history of offering tobacco consumers significantly less harmful products, Swedish Match has pioneered this effort.”
February 15, 2018
Cigar-smoking leader
The makers of a Churchill biopic have been criticised by historians after they felt it was necessary to warn viewers that scenes with the former prime minister smoking a cigar were ‘based solely on artistic consideration’, according to a story by Callum Adams for the Electronic Telegraph.
In the opening scenes of Darkest Hour, ‘Churchill’s’ face is lit by a cigar as he sits in a darkened room, and, indeed, the former British prime minister is shown smoking throughout the film.
Historians and biographers have criticised the disclaimer, which appears in the final credits, alerting viewers to the ‘serious health risks associated with smoking and with second-hand smoke’.
‘The depictions of tobacco smoking contained in this film are based solely on artistic consideration and are not intended to promote tobacco consumption,’ the health warning begins.
Mary Beard, professor of Classics at the University of Cambridge, reportedly told the Mail on Sunday newspaper that, in her opinion, the disclaimer only added to the temptation, while the historian, Richard Evans, a specialist in modern European history at Cambridge University, said he didn’t suppose the film would prompt many to rush out and buy cigars.
The idea that ordinary people are unlikely to rush out and buy cigars is supported by financial considerations. According to a story by John Houck for Inquisitr, the moviemakers, wanting the film to be as authentic as possible, used the Cuban brand smoked by Churchill, Romeo y Julieta – at a cost of $20,000 over the length of the filming.
Meanwhile, the royal biographer Hugo Vickers suggested that the film-makers should have added a further line stating: “Sir Winston Churchill lived to be 90”.
December 27, 2017
Myanmar to export cigars
The Burmese Tobacco Trading Company (BTTC) has said it is to collaborate with the Robaina tobacco family to roll out the Don Alejo Robaina Cigar brand next year in Europe, North America and Asia.
According to a BTTC press note issued through PRNewswire, BTTC was set up by the Huang family, described as a ‘prominent Chinese-American group of business owners’.
‘Together with Robaina family engineers, they discovered promising land in Pyin Oo Lwin, Myanmar (Burma) that is very similar to the tobacco farmlands of Pinar del Rio, Cuba,’ the press note said.
‘The now-established farm: “Myanmar Farms” boasts close to 80 acres, and has been supervised and managed by select members from the Robaina family’s team.’
“The Robaina team members are extremely excited with the quality of tobacco that has been produced at Myanmar Farms,” said Jimmy Huang.
“The altitude, climate, and rich virgin-soil in Burma was an undiscovered treasure until now. We look forward to the roll out of our premium cigars in the near future.”
The Don Alejo Robaina brand will be dedicated to the memory of the ‘Godfather of Cuban tobacco’, Don Alejandro Robaina.
‘The Robaina family is globally known for growing some of the highest quality tobacco worldwide, from their plantations in Pinar del Rio, Cuba,’ the press note said.
‘Alejandro Robaina, the long-time family patriarch was globally recognized by many as the “Godfather of Cuban tobacco”. After his passing, the Robaina family continues to carry out his legacy in Cuba.
‘They are endeavoring to further the Robaina surname, in this case, by working with the Burmese Tobacco Trading Company. The Robaina family looks forward to producing a truly unique cigar using the time honored practices of Alejandro Robaina.’
December 11, 2017
Topless protest
A recent meeting of the Hamptons Health and Safety Board (HHSB) was disrupted when a large group of angry motorists arrived to protest against recently extended restrictions on smoking, according to a story in Dan’s Papers, Southampton, New York, US. The Hamptons police department was called in to keep the meeting from getting out of hand.
At issue for the protestors was a new rule banning smoking in ‘topless’ cars.
“When I initially read about the ban, I thought it must be a misprint – I thought they were probably eliminating smoking in topless bars, not topless cars!” Randy Talbac, head of a local smokers’ rights group, was said to have told the assembled meeting. “And since there aren’t any topless bars that I know of in the area, I wasn’t too upset. But then it turned out it really was about cars – convertibles, that is – and it’s outrageous.”
The ban on smoking in cars with no tops, whether they are convertibles with the roof down or jeep-type vehicles that have no tops, was said to have come about as a measure to cut down on second-hand smoke exposure.
Christopher Escopillo, the co-chair of the HHSB, explained the genesis of the new rule. “We were getting a lot of concerned citizens coming to us, explaining how they would be sitting in Hamptons traffic behind some guy in a sporty convertible, with his top down, puffing on some big, noxious stogie,” he said. “From their point of view, they are forced to inhale unhealthy air for however long they’re stuck behind the guy. So we decided it was up to the HHSB to do something about it.”
Talbac and his supporters were not impressed by this reasoning, and for a while the situation looked like it might turn violent.
In the end, however, cooler heads prevailed, and Talbac vowed to return with a lawyer and fight the new rule in court.
November 13, 2017
SM’s sales up and down
Swedish Matches snus shipments in Scandinavia during the three months to the end of September, at 61.7 million cans, were increased by about two percent on those of the three months to the end of September 2016, 60.6 million cans.
During the same periods, shipments of moist snuff in the US were down by about six percent to 33.6 million cans, while shipments of snus and nicotine pouches outside Scandinavia were increased by 74 percent to 3.5 million cans.
Swedish Match’s share of the Swedish snus market was down by 2.2 percentage points to 64.9 percent, while its share of Norway’s snus market was down by 1.2 percentage points to 52.0 percent.
The company’s cigar shipments during the three months to the end of September, at 405 million pieces, were increased by about one percent on those of the three months to the end of September 2016, 402 million pieces.
During the same periods, the company’s chewing tobacco shipments, excluding contract-manufacturing volumes, fell by about six percent to about 1,636,000 pounds.
Sales increased by one percent in local currencies, but reported sales declined by one percent to SEK4,069 million for the third quarter.
“This has been an exciting quarter for Swedish Match, where we have further demonstrated our commitment toward our vision of a world without cigarettes as evidenced by our efforts in modern smokeless products,” said CEO Lars Dahlgren in reporting Swedish Match’s third quarter and nine-months results.
“We have been introducing innovative new products, and continued to expand in new markets, organically as well as via the acquisition of the Danish smokeless tobacco business, V2 Tobacco.
“In the world around us, there exists a continuously growing interest, from consumers, industry players and certain important policymakers, in tobacco harm reduction. Where regulators have yet to acknowledge a more science-based approach to tobacco regulation, we have continued to make our voice and solid fact base heard.
“At the same time, we have continued our strong commitment toward our more traditional businesses, often in very competitive environments.
“For the quarter, sales and profit from product areas demonstrated resilience. Currency translation effects turned negative this quarter but sales grew in local currencies for both snus and moist snuff and other tobacco products…”
October 30, 2017
PM USA’s volume down
Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 30,828 million, was 6.2 percent down on that of the third quarter of 2016, 32,864 million.
Marlboro volume was down by 6.0 percent to 26,445 million, while the volume of the company’s other premium brands was down by 6.9 percent to 1,567 million. Its discount-brand volume was down by 7.3 percent to 2,806 million.
In presenting its third-quarter and nine-month figures, Altria said that total cigarette industry volumes had declined by an estimated 3.5 percent during the third quarter. ‘The smokeable products segment’s reported domestic cigarettes shipment volume declined by 6.2 percent in the third quarter, primarily driven by the industry’s rate of decline, trade inventory movements, retail share declines and one fewer shipping day,’ it said. ‘After adjusting for trade inventory movements and calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 4.5 percent.’
Meanwhile, Altria reported that for the first nine months of 2017, total cigarette industry volumes had declined by an estimated 3.5 percent. ‘The smokeable products segment’s reported domestic cigarettes shipment volume decreased by 4.0 percent, primarily driven by the industry’s rate of decline, retail share declines and one fewer shipping day, partially offset by trade inventory movements,’ it said. ‘When adjusted for trade inventory movements and calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 4.0 percent.
PM USA’s domestic-market retail share during the three months to the end of September, at 50.5 percent, was down by 0.6 of a percentage point on that of the third quarter of 2016.
Marlboro’s market share was down by 0.5 of a percentage point to 43.2 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 2.7 percent, and the share of its discount brands was unchanged at 4.6 percent.
Middleton’s cigar shipment volume during the first three months, at 385 million, was increased by 6.6 percent on that of the three months to the end of September 2016, 361 million, as Black & Mild volume rose by 6.7 percent to 381 million and other-cigar volume was unchanged at four million.
USSTC’s domestic smokeless products shipment volume during the third quarter, at 212.6 million cans and packs, was down by 1.8 percent on that of the three months to the end of September 2016, 216.4 million.
Shipments of Copenhagen and Skoal, taken together, were down by 2.0 percent to 195.7 million packs and cans, while shipments of other brands were increased by 1.2 percent to 16.9 million packs and cans.
USSTC reported that its domestic shipment volume had declined by 1.8 percent and 1.7 percent in the third quarter and first nine months of 2017 respectively, driven primarily by declines in sales of Skoal. ‘After adjusting for trade inventory movements and other factors, USSTC estimates that its domestic smokeless products shipment volume declined approximately three percent in the third quarter and 1.5 percent for the first nine months,’ Altria said. ‘USSTC estimates that the smokeless products category volume grew approximately 0.5 percent over the past six months.’
USSTC’s retail share of the domestic smokeless products market during the three months to the end of September, at 53.8 percent, was down by 1.1 percentage points.
The share of Copenhagen and Skoal, taken together, fell by 1.2 percentage points to 50.4 percent, while the share of the company’s other brands increased by 0.1 of a percentage point to 3.4 percent.
Altria’s 2017 third-quarter reported diluted earnings per share (EPS) were increased by 73.2 percent to $0.97 on those of the third quarter of 2016, with comparisons affected by special items. Third quarter adjusted diluted EPS, which excludes the impact of special items, increased by 9.8 percent to $0.90.
“Altria delivered outstanding performance in the third quarter and for the first nine months of 2017 as our core tobacco operating companies generated strong income growth,” said Marty Barrington, Altria’s chairman, CEO and president. “Our financial performance continues to strengthen in the second half, as we expected.”
“And we continued to focus on rewarding shareholders through the first nine months, paying out more than $3.5 billion in dividends and repurchasing nearly $2.4 billion in shares. In August, Altria’s board of directors voted to increase our quarterly dividend per share by 8.2 percent.”
“The business is performing well in a competitive environment, and we continue to expect full-year adjusted diluted EPS growth of 7.5 percent to 9.5 percent.”
October 27, 2017
Cigar festival announced
Granada, one of Nicaragua’s main cities, will be the first stop on the seventh Puro Sabor Cigar Festival, which is due to be held on January 22-27.
The Puro Sabor Festival is organized by the Nicaraguan Tobacco Chamber (CNT) to celebrate, and provide the opportunity for international recognition of, the tobacco grown and the cigars manufactured in Nicaragua.
“The festival has become a way of presenting our wealth of culture, history and traditions,” said CNT president Anielka Ortez. “We want our friends and clients to enjoy and learn more about our country and to let themselves be seduced by Nicaragua’s natural charms.”
On the third day, the festival will move to the city of Estelí, where those attending will have the chance to savor cigars on the farms and in the factories where they are produced.
They will have the opportunity to enjoy also gala dinners, cultural events and panel discussions of interest to those who want to learn more about cigar production in Nicaragua.
More information on the festival is at:
http://nicaraguancigarfestival.com/.
October 18, 2017
Final warning given
The US Food and Drug Administration has issued its final guidance on small-cigar-pack health-warnings, Compliance Policy for Required Warning Statements on Small-Packaged Cigars.
From August 10, 2018, it will be unlawful for anyone to manufacture, package, sell, offer to sell, distribute, or import for sale or distribution within the US any cigar unless its product packaging bears one of the following warning statements:
- WARNING: This product contains nicotine. Nicotine is an addictive chemical.
- WARNING: Cigar smoking can cause cancers of the mouth and throat, even if you do not inhale.
- WARNING: Cigar smoking can cause lung cancer and heart disease.
- WARNING: Cigars are not a safe alternative to cigarettes.
- WARNING: Tobacco smoke increases the risk of lung cancer and heart disease, even in non-smokers.
- WARNING: Cigar use while pregnant can harm you and your baby; or SURGEON GENERAL WARNING: Tobacco Use Increases the Risk of Infertility, Stillbirth and Low Birth Weight.
The FDA does not intend to take enforcement action with respect to cigars sold in packaging that is too small or otherwise unable to accommodate a label with the required warning statement once the compliance policy takes effect, if the warning statements appear either:
- On the carton or other outer container or wrapper if the carton, outer container, or wrapper has sufficient space to bear the information; or
- On a tag otherwise firmly and permanently affixed to the tobacco product package.
The compliance policy does not apply to other labeling provisions, such as the random display and distribution of cigar warning statements on packaging in accordance with an FDA-approved warning plan.
September 25, 2017
Costs taxing cheroot makers
Cheroots, previously a staple of Myanmar’s smokers, are close to extinction as manufacturers struggle with high taxes, high production costs and stiff competition from imported and local cigarettes, according to a story by Khin Su Wai for the Myanmar Times.
Nowadays, cheroots were found only in two out of a hundred tea shops in the country, cheroot-manufacturer Ko Hlaing Zayar Oo, Shwe Su, was quoted as saying.
His output during the past three years has dropped to 60 baskets (one basket contains 1300 cheroots) per month from a high of 200 baskets five years ago.
Ko Hlaing Zayar Oo noted also that the price of the basic materials for cheroot production, tobacco stalks and tobacco leaves, had risen respectively from K3,000 per viss (one viss is about 1.6 kg) to K8,000 per viss, and from K2,500 per viss to K3,500 per viss.
He said the piece rates for the women who manually rolled the cheroots had risen to K400 for a hundred cheroots, though it was not stated what those rates were previously. Each of his workers can produce 700-1,000 cheroots per day.
Cheroot production started in Myanmar during the reign of King Shinphyushin, who ruled between 1763 and 1776.
And at their peak, a few decades ago, big cheroot manufacturers could produce up to six million a month, but their production declined by 50 percent last year.
Cheroot manufacturers complained about the several taxes they have to pay: commercial tax, special tax and profit tax.
U Khin Mg Win, who manufactures Kyae Ni cheroots in Oktwin in the Pegu division, said that last year he paid taxes amounting to K30 million and that this year he expected to pay K80 million.
Meanwhile, Daw Khin San Hlaing, secretary for the Myanmar Cheroot Production and Distribution Association, reportedly told The Myanmar Times that the government should help cheroot makers improve leaf production efficiencies and reduce cheroot production costs.
Daw Khin San Hlaing called on the government also to reduce the taxes imposed on cheroots and to help producers explore export markets.
September 20, 2017