Category: Covid-19

  • USTC Closes Timberlake

    USTC Closes Timberlake

    The manufacturing division of U.S. Tobacco Cooperative (USTC), U.S. FlueCured Tobacco Growers of Timberlake, North Carolina, USA, is temporarily closing its manufacturing operations due to the coronavirus.

    The Timberlake manufacturing facility will be closed from March 23 until April 6 to help combat the spread of the virus. Plans are to resume manufacturing on April 6 but could be amended based on the pandemic situation.

    U.S. Flue-Cured Tobacco Growers will continue to ship orders from inventory to customers and to internal distributors and warehouses. Over the past few weeks, inventory levels have been increased to allow for this situation.

    “This is a challenging time for everyone worldwide and we remain focused on protecting our employees, customers and vendors while we work our way through this pandemic,” said Oscar J. House, CEO and president of USTC.

  • Restrictions Threaten Zimbabwe’s Season

    Restrictions Threaten Zimbabwe’s Season

    Restrictions on public gatherings to prevent the spread of coronavirus infections are threatening to disrupt the Zimbabwean tobacco selling season, reports The Zimbabwe Daily Mail.

    The tobacco selling season attracts thousands of farmers to Harare and selling points outside the capital to trade in Zimbabwe’s prime foreign currency earner. Apart from farmers, thousands of traders and other small businesses flock to tobacco auction floors in an annual ritual.

    On Tuesday, President Emmerson Mnangagwa announced measures to contain a possible outbreak, which included banning of gatherings of more than 100 people.

  • Altria CEO contracts coronavirus

    Altria CEO contracts coronavirus

    Altria CEO Howard Willard has tested positive for the coronavirus, according to Reuters.

    Willard is taking temporary medical leave, and William Gifford Jr., Altria’s chief financial officer, is taking over in his absence.

    “Howard has been out of the office for several days, and we have notified those who were in close contact with Howard and asked them to self-quarantine for 14 days,” a staff memo said.

  • PM Suspends Richmond Operations

    PM Suspends Richmond Operations

    Philip Morris USA’s cigarette factory in Richmond, Virginia, USA

    Altria Group is temporarily suspending operations at Philip
    Morris USA’s factory in Richmond, Virginia, USA, out of an abundance of caution
    after learning last night that a second PM USA employee tested positive for
    COVID-19. The company expects the manufacturing center to suspend operations
    for the next two weeks, though PM USA will continue to monitor the evolving
    situation.

    PM USA has actively implemented business continuity plans
    and believes it has sufficient finished goods cigarette inventory for
    approximately two months based on current estimated shipping volume, in
    addition to current wholesale and retail inventories. Separately, some
    Middleton domestic operations will also be suspended for two weeks due to
    COVID-19 related supply chain constraints. Middleton believes it has sufficient
    finished goods cigar inventory for approximately 3 months based on current
    estimated shipping volume, in addition to current wholesale and retail
    inventories.

    “We are committed to protecting the safety and well-being of
    our employees, contractors, their families and the communities where we
    operate,” said Billy Gifford, Altria’s vice chairman and chief financial officer.
    “We take the threat of COVID-19 seriously and have been actively implementing
    plans to minimize business disruptions and their potential impact to our
    employees, consumers and customers.”

    During this temporary two-week suspension of plant
    operations, PM USA and Middleton will pay employees their regular base wages.
    PM USA and Middleton will evaluate providing additional pay continuation beyond
    that timeframe as needed.

  • Plea to Keep U.K. Shops Open

    Plea to Keep U.K. Shops Open

    The U.K. vapor industry is urging the government to keep vape stores open across the country, rather than forcing them to close as part of any intensification of its coronavirus containment strategy. Closing vapes stores, the industry argues, would be a potentially counterproductive move that could place further strain on the already overstretched National Health Service.

    In an open letter to Nadhim Zahawi, Parliamentary Under-Secretary of State at the Department for Business, Energy and Industrial Strategy, the U.K. Vaping Industry Association (UKVIA), the largest trade body representing the vaping sector in the U.K., calls for vape shops in cities, towns and rural areas to stay open and be exempt from any government lockdown.

    In the letter the UKVIA cites the experience of Italy, the country in Europe hit hardest by coronavirus so far and where the government reversed its decision to close vape stores as part of its containment program.

    The letter to the British Minister reads: “We recognize and support the government’s intensified containment plan for the virus but would urge you and your colleagues to look at the example of Italy.

    “Dr Riccardo Polosa, a world renowned scientist and researcher on vaping and tobacco harm reduction and founder of the Centre of Excellence for the Acceleration of Harm Reduction, successfully argued that due to the stress caused by the Coronavirus, with the closure of vape shops vapers were highly likely to go back to smoking cigarettes to maintain their nicotine needs. This could be dangerous from a public health perspective and could heighten the risk of exposure of tobacco smoke to bystanders during the crisis, including families and children. It could also place a further burden on an already overstretched health system.”

    The UKVIA goes on to call on the British government to give the sector every support it can so that the industry can maintain its service to three million plus vapers across the country, including those in self isolation and people living in remote areas, whilst continuing to play a key role in helping even more smokers to quit by taking up vaping.

    “The U.K. vaping industry, including retail outlets, online stores, manufacturers and compliance specialists, has a vital role to play in communities across the country, both from an economic and public health perspective and we want the government to recognize this in their response to the unprecedented challenge we face,” said John Dunne, director of the UKVIA.

    “In particular, if vape shops were to close it would mean that smokers and vapers would not have access to specialist advice. Keeping the vaping sector open for business is also crucial to meeting the government’s target for England to be smoke free by 2030.”

    Backing the vaping industry request, Sir Kevin Barron, Honorary Fellow of the Royal College of Physicians and former MP and previous member of the General Medical Council, said: “It is predicted that Coronavirus will have a huge negative mental health impact on our population with added stress and anxiety arising from being quarantined or isolated, worries about jobs and finances, and the risk of the disease to themselves and friends and families.”

    “In such situations there can be a heightened temptation to smoke and its crucial that continued access to vaping during the crisis ensures vapers do not return to conventional cigarettes and that existing smokers can be encouraged to switch to vaping. The concern is that if the number of smokers increase in the UK this could place further pressure on an already under pressure domestic health system struggling to deal with the coronavirus. 

    “In addition, the performance of the vaping industry speaks for itself. It’s one of the stand-out success stories of the 21st century in the business world. Therefore, the government needs to give it the support it needs to continue to thrive and contribute to local economies around the country, now and in the future.”

    The UKVIA has also sent its letter to Paul Scully, small business minister, and Jo Churchill, minister for prevention, public health and primary care.

     

  • BAT Unaffected by Virus Outbreak

    BAT Unaffected by Virus Outbreak

    British American Tobacco (BAT) has seen no material impact from the outbreak of Covid-19, the company said during a webcast on March 18.

    Consumers continue to purchase tobacco products, even in the hardest hit areas. “We don’t see any change in patterns of consumption of cigarettes because of Covid-19,” said Jack Bowles, chief executive officer of BAT. “It is a daily purchase, so consumers continue to go to shop, even in Italy and France where tobacco shops are still open.”

    BAT faced some manufacturing disruptions in February in China due to the virus outbreak, but production resumed in March.

    The company will not revise its forecasts of a 4 percent decline in 2020 cigarette and tobacco-heating product industry sales and a 5 percent decline in the United States, according to Reuters. BAT also maintains its forecast of 3 percent to 5 percent for constant currency adjusted revenue growth as well as its forecast of high single digits for earnings per share growth.