Category: Business

Imperial to Test Heating Product in Greece

Photo: Imperial Brands
Imperial Brands has stepped up market testing of its heated-tobacco products through a national rollout in Greece.
Insights from Greek consumers on the Pulze device and iD heat sticks will help inform the potential for further launches in a focused number of European markets. Earlier this month, Imperial Brands launched a pilot trial for its tobacco-heating products in the Czech Republic.
Building a targeted and sustainable next-generation product (NGP) business is a key part of Imperial’s new strategy and its commitment to make a meaningful contribution to harm reduction.
According to the company, heated-tobacco is an established NGP category in a number of European territories, including where Imperial already has a strong route to market for its traditional tobacco products.
“Heated-tobacco continues to gain traction among adult smokers in Greece, and we see significant growth opportunities for our promising products in this category,” said Imperial Brands’ chief consumer officer, Anindya Dasgupta, in a statement.
“The valuable consumer insights we gain from the pilot initiatives in Greece and the Czech Republic will inform the scale and pace of further market rollouts.”
Heated-tobacco currently accounts for more than 10 percent of the total tobacco sector in Greece, with further strong growth anticipated.
The Pulze device heats but doesn’t burn iD heat sticks to provide nicotine and tobacco aromas containing fewer and substantially lower levels of the harmful chemicals found in combustible cigarette smoke.
Unlike other heated-tobacco products, the Pulze device does not require a charging case, offering up to 20 consecutive uses. It is available in copper and silver colors.
ID tobacco consumables are being made available in Greece in four flavors: Rich Bronze, Balanced Blue, Capsule Polar and Ice.
September 20, 2021
Poda to Change Name, Corporate Structure

Ryan Selby (Photo: Poda)
Poda Lifestyle and Wellness’ board of directors approved a proposal to change the company’s name from Poda Lifestyle and Wellness Ltd. to Poda Holdings Inc. The change remains subject to the approval of the Canadian Securities Exchange.
There is no consolidation of the company’s share capital in connection with the planned name change. The proposed name change will not affect the company’s share structure or the rights of the company’s shareholders.
In addition to the intended name change, the company also announced plans for a new corporate structure, whereby the company will create six strategic subsidiaries, each focused on specific growth areas of the company. The proposed names for the six subsidiaries are Poda (Tobacco), Poda (Alternatives), Poda (Therapeutics), Poda (THC), Poda (CBD) and Poda (Research and Development).
“This proposed name change is consistent with our business objectives and our long-term strategy,” said Poda CEO Ryan Selby in a statement. “Our valuable intellectual property has applicability across a wide-ranging scope of applications, and I believe the name Poda Holdings Inc. more accurately serves the overarching vision the board has for the company.
“In addition to the name shift, creating the six new subsidiaries will provide strategic focus and strong growth opportunities in each of the target opportunities. I look forward to sharing more information about our customized strategies for each subsidiary over the coming weeks.”
September 16, 2021
PMI Completes Fertin Pharma Acquisition

Photo: Tanusha
Philip Morris International has closed its acquisition of Fertin Pharma, a leading developer and manufacturer of innovative pharmaceutical and well-being products based on oral and intra-oral delivery systems, for an enterprise value of DKK5.1 billion ($820 million).
“As we build our pipeline of smoke-free products with the goal of phasing out cigarettes and expand our business for the long-term toward areas outside of tobacco and nicotine, such as self-care wellness, we welcome the contributions that Fertin Pharma, its management and its employees will bring to PMI,” said PMI CEO Jacek Olczak in a statement.
“PMI’s future is centered on health, science, technology and sustainable business practices to deliver innovative products and solutions that aim to improve people’s lives and create a net positive impact on society. The world-class expertise of Fertin aligns perfectly with this vision and will be an important part of our future.”
“We are excited to join PMI and start this new chapter for Fertin Pharma,” said Peter Halling, the company’s CEO. “By becoming part of PMI’s transformation, Fertin will be uniquely positioned to continue to innovate, grow and serve our customers as a leading CDMO [contract development and manufacturing organization]—delivering on our vision to enable people to live healthier lives. Our shared commitment to science and consumer-centric innovations forms a strong basis for a very successful future together.”
The addition to Fertin Pharma’s technologies, capabilities and workforce—including around 200 R&D professionals—will provide PMI with speed and scale in differentiated and innovative oral delivery products to support its 2025 goals of generating more than 50 percent of its total net revenues from smoke-free products and at least $1 billion in net revenues from products beyond nicotine.
With Fertin Pharma’s know-how, PMI plans to accelerate its presence in the fast-growing modern oral category through a broad range of smoke-free products, such as nicotine pouches, that can help more adults who would otherwise continue to smoke switch to better alternatives and stop smoking. In addition, Fertin Pharma’s oral delivery platforms—which are complementary to PMI’s inhalation expertise—can be leveraged for the development of scientifically substantiated self-care wellness products, including over-the-counter solutions and supplements for better living in areas such as sleep, energy, calm and focus.
By becoming part of PMI’s transformation, Fertin will be uniquely positioned to continue to innovate, grow and serve our customers as a leading CDMO [contract development and manufacturing organization]—delivering on our vision to enable people to live healthier lives.
Peter Halling, CEO, Fertin Pharma
Fertin Pharma has more than 850 employees and operations in Denmark, Canada and India. It is a leading CDMO, specializing in the research, development and production of gums, pouches, liquefiable tablets and other solid oral systems for the delivery of active ingredients, including nicotine, where it is a leading producer of nicotine-replacement therapy solutions. In 2020, Fertin Pharma generated net revenues of DKK1.1 billion.
September 16, 2021
PMI’s Vectura Offer Becomes Unconditional

Photo: danielabalan
PMI Global Services’ offer for inhaled drug delivery solutions provider Vectura Group has become unconditional, having received valid acceptances for or acquired 74.77 percent of Vectura shares, in excess of the 50 percent required under the acceptance condition, as well as confirming that all other conditions to the offer have been satisfied or waived. PMI has extended the offer to allow for the tender of further shares.
“We have reached an important milestone in our acquisition of Vectura and are pleased to have secured over 74 percent of the company’s shares, in excess of the 50 percent required to make our offer unconditional and PMI the majority shareholder,” said PMI CEO Jacek Olczak in a statement.
“We are very excited about the critical role Vectura will play in our ‘beyond nicotine’ strategy and look forward to working with Vectura’s scientists and providing them with the resources and expertise to grow their business to help us achieve our goal of generating at least $1 billion in net revenues from Beyond Nicotine products by 2025.”
PMI’s proposed acquisition of Vectura is part of its long-term strategy to move beyond nicotine and will provide support for Vectura’s continued growth. The tobacco firm intends to build on Vectura’s scientific capabilities to develop products and services that go beyond nicotine. PMI aims to achieve at least $1 billion in annual net revenues from non-nicotine sources by 2025.
PMI’s acquisition follows a bidding war with the private equity firm Carlyle.
PMI’s bid unleashed a storm of criticism from public health advocates who dislike the idea of a tobacco company investing in the lung health business.
September 16, 2021
Juul Plans Research Facility in North Carolina

Photo: steheap
Juul Labs plans to open a research facility in Research Triangle Park, North Carolina, USA, reports WRAL.
The new facility is expected to create 35 full-time jobs, according to a company spokesman.
“We will continue to seek to earn the trust of key stakeholders, including local officials, as we advance the potential for harm reduction for adult smokers while combating underage usage,” Juul said in a statement.
In June, Juul Labs settled a lawsuit brought by North Carolina Attorney General Josh Stein, who accused the company of marketing its product to young people. Juul agreed to pay $40 million but denied wrongdoing or liability. North Carolina was the first state to take legal action against Juul.
At least 13 states, including California, Massachusetts and New York, as well as the District of Columbia, have filed similar lawsuits. The central claim in each case is that Juul knew, or should have known, that it was hooking teenagers on pods that contained high levels of nicotine.
A lawsuit brought against Juul by North Carolina’s Wake County Public School System is currently ongoing.
In 2020, e-cigarette usage decreased by 19.6 percent in high-schoolers and among middle-schoolers by 4.7 percent, according to the U.S. Federal Drug Administration. The U.S. Centers for Disease Control and Prevention contends nicotine can harm adolescent brain development.
September 8, 2021
Universal to Acquire Shank’s Extracts

Photo: Africa Studio
Universal Corp. has entered into a definitive agreement to acquire Shank’s Extracts, a privately held specialty ingredient, flavoring and food company with bottling and packaging capabilities. Following the close of the transaction, Shank’s will operate as part of Universal’s plant-based ingredients platform, which includes the previously acquired companies Silva International and FruitSmart.
Founded in 1899, Shank’s has established a strong presence within the flavoring, extracts and bottling marketplace, with significant vanilla expertise. In addition to pure vanilla extract products, Shank’s offers a robust portfolio of over 2,400 other extracts, distillates, natural flavors and colors for industrial and private label customers worldwide. Headquartered in Lancaster, Pennsylvania, USA, Shank’s employs more than 200 people and has a 191,000-square-foot manufacturing campus.
“This agreement with Shank’s marks another important step forward in Universal’s efforts to identify and execute on opportunities that broaden and enhance our plant-based ingredients platform,” said George C. Freeman III, chairman, president and CEO of Universal Corp, in a statement. “The Shank’s acquisition fits squarely in our new platform and our capital allocation strategy, bolstering our offerings for customers and expanding our value-added services by adding flavors, custom packaging and bottling, and product development capabilities.”
“Shank’s has been providing high-quality products and services for more than 120 years, earning a reputation for consistency, traceability and dependability. This has allowed us to build a strong portfolio of long-tenured, blue-chip customers. As part of Universal Corporation, Shank’s will benefit from the resources and scale of a global organization as we look to expand our offerings and enter new, lucrative end markets,” said Jeffrey Lehman, president-owner of Shank’s.
Universal Corporation expects the transaction to close in the calendar-year fourth quarter, subject to customary closing conditions, and anticipates the acquisition will be accretive to earnings in fiscal year 2023. Following the close of the transaction, the existing management team will continue to run the business and report to J. Patrick O’Keefe, senior vice president of Universal Global Ventures.
September 8, 2021
TJP Launches Pouch Factory in Canada
TJP Labs has launched Canada’s first modern oral nicotine contract manufacturing facility for oral nicotine pouches in Pickering, Ontario. TJP Labs will provide international brands (and when authorized for sale in Canada, domestic brands) contract manufacturing capacity to service the rapidly expanding category. Production is expected to commence in the first calendar quarter of 2022.
Spread over a 30,000-square-foot campus, the factory will include G.D nicotine pouch manufacturing machinery. The new facility will have high-speed pouch filling and packaging rebuild lines, internal precision x-rays for automated purity control and auto weighing and photography to ensure the highest standards of consumer safety and product efficacy.
Phase 1 is expected to provide TJP Labs the capacity to produce over 36 million pouches per month, and Phase 2 should double that capacity. Phase 1 is expected to be completed by December 2021 and Phase 2 by the fourth quarter of 2022.
“Our team set out on our mission of engineering harm reduction solutions for a global network of customers seven years ago when my mother passed away from a combustible tobacco-related illness,” said David Richmond-Peck, CEO of TJP Labs, in a statement.
“The launch of this facility sets the foundation of our goal to build a network of international facilities for this rapidly growing category. We are proud that we will be able to provide manufacturing solutions to companies that give adult consumers a less harmful alternative to combustible tobacco products. Our multiple licenses, including Health Canada site license, FDA FEI, ISO 9001:2015, HACCP and cGMP, speak to the rigorous standards that we uphold and look forward to serving companies globally.”
September 2, 2021
Sting Free Inaugurates Stockholm Office

CEO Bengt Wiberg and CTO Daniel Wiberg outside their office near Stockholm (Photo: Sting Free)
Sting Free today inaugurated its new office in Lidingo, near Stockholm, where CEO Bengt Wiberg and Chief Technology Officer Daniel Wiberg now work full-time.
“We are very happy about the fantastic location with a view of Stockholm harbor on the seventh floor and Fastighetspartner as landlord,” said Bengt Wiberg.
“I am very happy to finally be able to spend full time on the exciting Sting Free journey. I never thought I would one day rent an office and run a company with my dad and even less a company in the nicotine industry. I am convinced that the Sting Free technology will delight many future customers and make an important contribution to public health,” says Daniel Wiberg.
Sting Free has developed a solution that minimizes the sting associated with snus, thus eliminating a barrier for smokers who want to switch to a less harmful method of nicotine consumption.
The company holds patents for its technology in Sweden and the U.S. and has received preliminary patent approval for all European countries.
Tobacco Reporter profiled Sting Free in its July 2017 issue.
September 1, 2021
Transformation Framework Published

Emmanuel Babeau (Photo: PMI)
Philip Morris International published its business transformation-linked financing framework, which integrates the company’s smoke-free transformation into its financing strategy.
“To strengthen our commitment and further highlight to stakeholders the seriousness of our smoke-free ambitions, we wish to link our most material sustainability priorities to our financing,” said Emmanuel Babeau, chief financial officer, in a statement. “We believe that a business transformation-linked financing framework not only helps reinforce our commitment to reinvent our company but will also allow investors and lenders to engage with and support our industry-leading transformation as we work to accelerate the end of smoking and use our strong capabilities to develop products that go beyond nicotine and have a net positive impact on society.”
The framework outlines the guidelines that PMI will follow in issuing business transformation-linked financing instruments in the debt capital and loan markets, which may include public notes offerings, private placements, loans and other relevant financing instruments.
The key performance indicators (KPIs) selected for the framework directly measure and respond to the focus of PMI’s sustainability and corporate strategy and the company’s most material sustainability topic: addressing the health impact of its products.
The framework includes two sustainability performance targets (SPTs), with an observation date of Dec. 31, 2025: Increase PMI’s full-year 2025 smoke-free/total net revenue percentage to more than 50 percent from the 2020 baseline of 23.8 percent; and increase the number of markets where PMI’s smoke-free products are available for sale to 100 markets by the end of 2025 from the baseline of 64 markets on Dec. 31, 2020.
The framework was validated by S&P Global Ratings, which provided a second party opinion (SPO). The SPO recognized the chosen KPIs and related SPTs as material, measurable, ambitious, regularly reported and externally verified—in line with the June 2020 Sustainability-Linked Bond Principles administered by the International Capital Market Association (ICMA) and the May 2021 Sustainability-Linked Loan Principles administered by the Loan Market Association (LMA). The SPO is also available on the PMI website.
“The framework builds on our genuine commitment to transform,” said Jennifer Motles, chief sustainability officer, “reflecting: a Statement of Purpose issued by the Board of Directors; concrete KPIs for reporting and compensating executives on that purpose (Business Transformation Metrics); business transformation-linked financing instruments tied to targets for select KPIs; and transparent, periodic disclosures on our progress through integrated reporting. I hope this can serve to inspire something bigger within our industry and set an example for other industries also undergoing transformations.”
August 31, 2021
Nordson Corp. Acquires NDC Technologies

Photo: NDC Technologies
Nordson Corp. has signed an agreement for the acquisition of NDC Technologies from Spectris. The acquisition expands Nordson’s test and inspection platform into new end markets and adjacent technologies. The all-cash transaction, subject to customary post-closing adjustments, is valued at $180 million.
“We are excited to welcome NDC Technologies’ nearly 300 employees into the Nordson family. They will bring exciting new capabilities and expertise to our test and inspection platform,” said Jeffrey Pembroke, executive vice president of Nordson Advanced Technology Solutions, in a statement. “NDC’s customer-centric business model, differentiated technology and end markets make it a very Nordson-like business. This acquisition is further progress on our Nordson Ascend Strategy to achieve top-tier growth with leading margins and returns. We look forward to applying the NBS Next growth framework and investing in NDC’s greatest opportunities for profitable growth.”
“We are very excited to join the Nordson family. It’s a great fit,” said Marti Nyman, president of NDC Technologies. “The combination will afford us the opportunity to continue to build on our 50-plus years’ foundation of delivering innovative measurement and process control solutions to the industries we serve. NDC has a rich history of working closely with industry to solve some of the most challenging gauging applications. The NDC Technologies’ team is eager to enter this new chapter with Nordson, furthering our mission of transforming process operations around the world, delivering value and making a difference in people’s lives every day.”
NDC Technologies is headquartered in Dayton, Ohio, USA, and its technology portfolio includes in-line and off-line measurement systems using near-infrared, laser, X-ray, optical and nucleonic technologies as well as proprietary process control and analytics software. These precision applications enable manufacturers to enhance production processes, increase productivity and boost process efficiencies.
NDC also expands Nordson’s test and inspection platform beyond electronics into new end markets, including consumer nondurable, film extrusion and converting, cable and tubing and energy storage.
August 26, 2021