Category: Featured

22nd Century to Host Fireside Chat Event

Image: connected2000
22nd Century Group will host a fireside chat event on Wednesday, Jan. 17, 2024, beginning at 1:00 p.m. Eastern Time. The event will be hosted by a covering research analyst and feature interactive Q&A with Larry Firestone, who was appointed chairman and CEO in December 2023.
Firestone will address the new corporate strategy to create a lean operating cost structure focused on the company’s tobacco manufacturing and tobacco harm reduction products, return the company to growth and strengthen the balance sheet to ultimately self-fund the company’s development plans.
“We have made significant progress at 22nd Century in a very short time, demonstrating our shared commitment to streamline the business, reduce costs and position the company on sustainable growth strategies that can lead to positive cash flows,” said Firestone in a statement. “We are by no means finished with our efforts and expect to further reduce costs, pay off our debt and diversify our continuing operations as the year progresses. This will enable the company to fully focus on the best path to achieving commercial success, particularly with our FDA [U.S. Food and Drug Administration]-authorized VLN harm reduction products.”
A webcast link to join the live webcast or a replay of the event will be available on the investor relations section of the 22nd Century Group website at https://ir.xxiicentury.com under “Events and Presentations.”
January 12, 2024
Taxes had ‘No Impact’ on Singapore’s Vape Ban

The Singapore government said that the potential loss in revenue from tobacco tax was not a factor in its decision to ban the use of e-cigarettes in 2018.
In his reply to a question by a Workers’ Party and Sengkang member of Parliament, Deputy Prime Minister Lawrence Wong, who is also the Minister for Finance, said, “The Government’s decision to ban the use of e-cigarettes in 2018 was based on public health considerations, to protect our population from the harms of these products. The potential loss in tobacco tax revenue from the reduced consumption of tobacco products was not a factor in this decision.”
… our priority is to protect the health of our population and prevent e-cigarettes from causing harm to our people, especially to younger Singaporeans.”

Lawrence Wong
Wong added that if the government were to legalize and tax e-cigarettes “the challenges would be similar to those we encounter for cigarettes and other tobacco products today,” according to a Yahoo news report.
“In any case, the government has no plans to change our current approach, as our priority is to protect the health of our population and prevent e-cigarettes from causing harm to our people, especially to younger Singaporeans,” he said.
January 12, 2024
Monoceros Buys Quarter of Bulgartabac
Photo: Tobacco Reporter archive
Monoceros has acquired nearly a quarter of Bulgartabac Holding from Liechtenstein-based Woodford Establishment for an undisclosed amount, reports Seenews.
Headquartered in the Cayman Islands, Monoceros is an early-stage investor and proprietary trading firm, with a portfolio chiefly made up of cryptocurrency and AI technology companies.
As of the end of 2022, Woodford Establishment was Bulgartabac holding’s second largest investor. Other prominent shareholders include UAE-registered Gifted Master, with 24.10 percent stake; UAE-registered Wardia (15.23 percent) and Lichtenstein-registered Stiga Ansalt (14.75 percent).
In 2022, Bulgartabac Holding reported a consolidated net profit of BGN36.1 million ($20.2 million) compared to a consolidated net loss of BGN70.6 million in the previous year, according to the company’s annual report.
Total operating revenue increased to BGN 271.5 million from BGN187.1 million as revenue from sales jumped 40 percent to BGN252.7 million.
In 2017, Bulgartabac Holding sold its biggest cigarette brands to British American Tobacco for more than €100 million ($109.7 million).
The company has since diversified its investments.
January 12, 2024
Lucy Gum Helps Prevent Cravings: Study

Credit: Lucy
Lucy Gum, a nonmedicinal nicotine product, helped prevent nicotine cravings among participants in a behavioral study published in Harm Reduction Journal.
Based on the results, respondents who smoked and were planning to quit, as well as those not intending to quit, were most interested in trying Lucy Gum, which is manufactured by oral nicotine product manufacturer Lucy Goods. Quitting or cutting down consumption of cigarettes, vapes and other tobacco products were the most common motivation for trying Lucy Gum. Many reported that it was helpful in preventing nicotine cravings, managing stress or maintaining focus. Notably, females who smoked showed interest in Lucy Gum in contrast to low female interest in traditional smokeless tobacco products.
Lucy Gum did not appear to attract those who never used tobacco products and has low potential to promote relapse in nicotine use for former tobacco users. Results for young adults suggest minimal appeal to youth, and there was no evidence that flavors of Lucy Gum appealed more to young adults than to older adults.
Current smoking cessation methods show limited effectiveness, with just a 0.3 percent reduction in population-level smoking prevalence projected for a 2.3 percent quitting rate.
“The fact that Lucy appeals to people who smoke, regardless of their intent to quit smoking, highlights the potential of Lucy to reach more adult tobacco users than medicinal NRT [nicotine-replacement therapy] products and to facilitate their transition to less harmful alternatives,” said David Renteln, CEO of Lucy Goods, in a statement.
January 12, 2024
Navaneel Kar to Lead IPM India

Navaneel Kar (Photo: IPM India)
Philip Morris International appointed Navaneel Kar as the managing director of its India operations, IPM India Wholesale Trading (IPM India). Prior to joining IPM India, Kar served as the president of sales at Tata Consumer Products. He will be reporting to Ankur Modi, cluster head of South Asia and Indochina for PMI.
With over 25 years of experience, Kar has been associated with reputed brands like ITC and Tata Motors. He has successfully led teams and organizations across multiple categories and channels in the food, tobacco, personal care and beverage sectors.
“I am pleased to welcome Navaneel Kar as IPM India’s managing director,” said Modi in a statement. “Navaneel has displayed leadership and strength in delivering exceptional results through his career. His entrepreneurship and learning mindset will be central to bring the next phase of growth for our India business.”
Kar said, “I am excited to assume the new role at this interesting juncture and contribute to the company’s growth and overall success. I look forward to working with the team to deliver competitive performance along with building an inclusive, diverse and a progressive workplace.”
January 11, 2024
KT&G CEO Won’t Seek Reappointment

Baek Bok-in (Image: KT&G)
KT&G’s governance committee on Jan. 11 finalized a longlist of CEO candidates, the company announced on its website. The list comprises 24 individuals including 14 external candidates and 10 internal candidates. The incumbent CEO, Baek Bok-in, has been excluded from the list as he has expressed his intention not to seek reappointment.
For the external candidates, eight individuals who applied through open recruitment and six individuals recommended by search firms have all been included in the longlist. In addition, 10 internal candidates who have participated in the company’s senior management training program have also been included.
The CEO appointment process is expected to take about three months. KT&G insists it will be conducted in a fair and transparent manner, following a three-step procedure involving the governance committee, the CEO candidate recommendation committee and approval at the general meeting of shareholders.
Following the procedure, the governance committee plans to conduct a comprehensive assessment of the candidates who have been longlisted. The governance committee also intends to consider and weigh impartial and objective opinions from the advisory panel, composed of five external experts. The committee will finalize the first shortlist of CEO candidates by the end of this month and recommend it to the CEO candidate recommendation committee.
Then, the CEO candidate recommendation committee will engage in a systematic and in-depth discussion regarding the candidates included in the first shortlist to form the second shortlist by mid-February. The second shortlist will be disclosed in a transparent manner upon its finalization.
The final CEO candidate will be named by the end of February. The appointment will be subject to approval at the annual general meeting of shareholders in late March.
The CEO candidate recommendation committee will be composed entirely of outside directors. Additionally, KT&G’s board of directors plans to propose an agenda item at the upcoming annual general meeting of shareholders to amend the articles of incorporation and make it obligatory to constitute the CEO candidate recommendation committee exclusively of outside directors, regardless of the incumbent CEO’s intentions regarding reappointment.
Late last year, KT&G shareholder Flashlight Capital Partners urged the tobacco company to select its next CEO in a more transparent manner after expressing disappointment with the current CEO’s performance and identifying several shortcomings in the previous selection procedure.
January 11, 2024
Nicotine Market Shares Flat in December

Tobacco Reporter Archive
Consumer demand for nicotine products has fluctuated due to inflation and rising cigarette prices over the past 13-19 months. However, the Neilsen report covering the four-week period ending Dec. 30 shows that market shares are holding steady for both next-generation and traditional tobacco brands.
The market share of R.J. Reynolds’ top-selling Vuse e-cigarette remained flat at 42 percent in December at convenience stores, according to the report. While Vuse’s market share was unchanged, No. 2 Juul dropped from 24.3 percent to 24.2 percent for the report covering the four-week period ending Dec. 30.
As recently as May 2019, Juul held a 74.6 percent share in the U.S. electronic cigarette market. That’s when a series of regulatory actions led to product-reduction concessions, according to media reports.
Meanwhile, Altria Group’s ownership of No. 3 NJoy hasn’t resulted in a meaningful market-share increase so far. Nielsen cited a research error by why it did not include an update for NJoy in the latest report. It was at 2.6 percent in the previous report.
Fontem Ventures’ blu eCigs, an affiliate of Imperial Brands Plc, was unchanged at 1.2 percent.
The overall e-cigarette category was down 9.9 percent.
In traditional cigarettes, Philip Morris’ top market share was at 50.6 percent in the latest Nielsen report with top-selling Marlboro representing 45.6 percent of overall market share.
Meanwhile, Reynolds was at 33.2 percent with Newport at 12.9 percent and followed by Camel (7.8 percent), Natural American Tobacco (3.7 percent) and Pall Mall (3.7 percent).
ITG was at 8.5 percent overall, although ITG has said its market share is closer to 10 percent. Its No. 7 Winston brand remained at 2 percent, while Kool and Maverick remained tied for No. 8 at 1.8 percent.
Goldman Sachs analyst Bonnie Herzog said that “in terms of specific company trends, total nicotine sales declines improved across the board for Altria, BAT, Imperial and Juul, while decelerating for all other manufacturers broadly in the latest period.”
The decline in cigarette sales continues at a strong pace, said David Sweanor, an adjunct law professor at the University of Ottawa and the author of several e-cigarette and health studies.
“Yet, as Altria results showed and Barclays recently highlighted, much of this is due to cross-category migration,” Sweanor said.
“People are switching to far lower-risk options. But disposable vaping products appear to currently be the greatest factor in this migration.”
TD Cowen analyst Vivian Azer said consumers’ cigarette “downtrading to discount and deep discount continues to benefit Imperial’s share trends.”
January 11, 2024
Hong Kong Mulls Higher Tobacco Tax

Photo: Tobacco Reporter archive
Authorities in Hong Kong are considering a further increase in tobacco duty, reports South China Morning Post, citing the city’s health minister.
Lo Chung-mau, secretary for health, did not confirm whether the measure would be included in Financial Secretary Paul Chan Mo-po’s budget next month. Tobacco taxes were previously increased in February 2023 by HKD0.60 ($0.07) per cigarette. A pack of 20 cigarettes now costs around HKD78.
“Data from the World Health Organization and the global experience proves that an increase in tobacco tax is one of the most effective methods [to reduce smoking]. We will definitely consider it,” Lo said.
Following last year’s tax increase, calls to the government’s smoking cessation hotline increased threefold to fourfold, showing that the move was effective to encourage people to quit smoking, according to Lo. The current smoking rate is 9.5 percent, and authorities hope to cut that down to 7.8 percent by next year.
Currently, tobacco duty accounts for 64 percent of cigarette retail price in Hong Kong. The World Health Organization recommends 75 percent.
The government is currently analyzing data from a public consultation on its tobacco control plans. Lo stated that the government aims to deliver short-term and long-term strategies.
January 11, 2024
‘States Shortchange Tobacco Prevention’
Photo: Tobacco Reporter archive
Most U.S states continue to shortchange programs to prevent kids from using tobacco products and help tobacco users quit despite over $1.1 billion in legal settlement payments from Juul, according to a new report.
Maine is the only state to fully fund tobacco prevention and cessation programs at Centers for Disease Control and Prevention (CDC)-recommended levels. Eight other states provide at least 50 percent of the CDC’s recommended funding, and 31 states and the District of Columbia are spending less than a quarter of the CDC’s recommendation.
The report, Broken Promises to Our Children: A State-by-State Look at the 1998 Tobacco Settlement, was released by the Campaign for Tobacco-Free Kids, the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association, Americans for Nonsmokers’ Rights and Truth Initiative. These organizations have issued annual reports since the November 1998 Master Settlement Agreement.
This year, states have additional revenues that could be dedicated to tobacco prevention programs because of more than $1.1 billion in recent legal settlements with Juul for its deceptive marketing practices and its role in the youth e-cigarette epidemic.
Key findings of the report include:
Even without counting the Juul settlement funds, the states this year (fiscal year 2024) will collect $25.9 billion from the tobacco settlements and tobacco taxes. But they will spend just 2.8 percent—$728.6 million—on tobacco prevention and cessation programs, down from $733.1 million in fiscal year 2023. This funding amounts to less than a quarter (22 percent) of the total funding recommended by the CDC.
The amount states are spending on tobacco prevention pales in comparison to the $8.6 billion a year tobacco companies spend to market cigarettes and smokeless tobacco products in the United States. This means tobacco companies spend nearly $12 to market their products for every $1 the states spend to fight tobacco use.
“We know what works to win the fight against tobacco, and states have plenty of resources from tobacco settlements and taxes to invest in programs that can accelerate progress. Unfortunately, most states are falling short in funding these lifesaving programs,” said Yolonda C. Richardson, president of the Campaign for Tobacco-Free Kids, in a statement. “The tobacco industry continues to do everything it can to target our kids, Black communities and other vulnerable communities, especially with flavored products like menthol cigarettes and flavored e-cigarettes. We know their playbook, and policymakers should be using every tool available to protect our kids and help those already addicted.”
January 11, 2024
Clearing the Smoke

Image: Tobacco Reporter archive
What can the next-generation nicotine industry expect in 2024?
By Paul Hardman
The U.K. government’s proposal for a “smoke-free” generation and changing consumer opinions toward nicotine products are causing a shift in consumer habits. The year 2023 shone a spotlight on e-cigarette compliance, with a potential ban on disposable vapes on the horizon. So, how will this year’s events impact the manufacturing of nicotine products, and what trends and regulations are we likely to see going into 2024?
Nicotine Pouches
Nicotine pouches represent an extraordinary opportunity to support tobacco harm reduction in adult smokers. Sweden, the world’s most advanced nicotine pouch market, is on the brink of being smoke-free, with less than 5 percent of its population smoking.
However, in the U.K., there is a regulatory gap that allows those under 18 to purchase nicotine pouches legally. In addition, there are concerns that nicotine pouch manufacturers could fall into the same traps as some disposable e-cigarette companies, by creating products that appeal to youth.
If youth use becomes an issue, the easiest move for regulators is to categorize nicotine pouches in the same way as oral tobacco products like snus—rendering them illegal. An alternative response might be to categorize these products as nicotine-replacement therapies and place them under medical product regulations, which would restrict their access.
To keep these products available to adult smokers who wish to quit, manufacturers can act as if regulation is already in place: generate data, devise safety frameworks and ensure the quality of products entering the market. Importantly, manufacturers should present and market their products in responsible ways, including avoiding bright colors, not imitating other consumer goods (e.g., soft drinks) and refraining from using any type of cartoon/video game characters.
Non-Heated Technologies
We have yet to witness a vape product approved via the U.K. Marketing Authorization Application (MAA) pathway, which enables nicotine products to be marketed as smoking cessation nicotine-replacement tools and prescribed by healthcare professionals. However, non-heated vape technology might facilitate MAA approval by addressing the core problem of delivered dose uniformity (DDU).
One example of a non-heated vape technology involves ultrasound sonication, which enables the atomization of e-liquids to create an aerosol, similar to technology used in medical nebulizers. The droplet size and dosage can be predefined according to the dimensions of the mesh, ensuring uniformity in the vapor, thus improving DDU. As we go into 2024, we will likely see more manufacturers exploring this approach. In parallel, e-liquids will be developed specifically for this technology.
Product Development
Nicotine product manufacturers have been moving toward a quality-by-design (QbD) development process, and we will see this continue in 2024. There are no specific guidelines or requirements for the stability testing of nicotine products other than the scientific justification for shelf life. Employing a QbD approach demonstrates a higher level of due diligence, which could produce safer, higher quality nicotine-delivery systems.
In addition, manufacturers are starting to implement extractables and leachables studies during the development process in anticipation of the new guidelines being set out by the European Committee for Standardization. Once these guidelines are published, we can expect to see a more standardized approach throughout the industry.
Paul Hardman is a managing consultant at Broughton, an independent life sciences contract research organization offering analytical testing services integrated with scientific consultancy and global regulatory support.

January 11, 2024