Category: Featured

  • Rain Sparks Planting Frenzy in Zimbabwe

    Rain Sparks Planting Frenzy in Zimbabwe

    Photo: Tobacco Reporter archive

    Recent rains have raised hopes that farmers will be able to meet or surpass Zimbabwe’s target of planting148,500 hectares of tobacco for the 2023-2024 growing season, reports The Herald.

    Statistics released by the Tobacco Industry and Marketing Board (TIMB) revealed that by Dec. 15, growers had planted 55,170 hectares of tobacco, 27 percent less than in the previous year. Zimbabwe has been suffered from drought at the start of the growing season.

    The return of rains has sparked a planting frenzy, however, making it likely that the crop’s hectarages will increase significantly over the coming days.

    Zimbabwe Tobacco Growers Association Chairman George Seremwe expressed confidence that the drop in planted area will be reversed.

    Zimbabwe Tobacco Association CEO Rodney Ambrose said the recent rains have also boosted the already established crops that were starting to show signs of moisture stress.

  • Cytisine More Effective than NRT: Study

    Cytisine More Effective than NRT: Study

    Image: molekuul.be

    Cytisine, a low-cost, generic stop-smoking aid that has been used in eastern Europe since the 1960s, increases the chances of successful smoking cessation by more than two-fold compared with placebo and may be more effective than nicotine replacement therapy, according to a new study published in Addiction. The cessation tool reportedly has a benign safety profile, with no evidence of serious safety concerns. 

    Cytisine is a plant-based compound that eases smoking withdrawal symptoms. It was first synthesized in Bulgaria in 1964 as Tabex and later spread to other countries in eastern Europe and Asia, where it is still marketed. In 2017, the Polish pharmaceutical company Aflofarm began selling it as Desmoxan, a prescription-only medicine, and Canada approved it as an over-the-counter natural health product, Cravv.

    This study pooled the results of eight randomized controlled trials comparing cytisine with placebo, with nearly 6,000 patients. The combined results showed that cytisine increases the chances of successful smoking cessation by more than twofold compared with placebo.

    The study also looked at two randomized controlled trials comparing cytisine with nicotine replacement therapy, with modest results in favor of cytisine, and three trials comparing cytisine with varenicline, without a clear benefit for cytisine.

    “Our study adds to the evidence that cytisine is an effective and inexpensive stop-smoking aid,” said lead author Omar De Santi in a statement. “It could be very useful in reducing smoking in low- and middle-income countries where cost-effective smoking cessation drugs are urgently needed.”

    Cytisine is currently not licensed or marketed in most countries outside of central and eastern Europe, making it unavailable in most of the world. At the end of January, cytisine pills are due to become available in the U.K., according to National World.

  • Research Board Warns for Crop Disease

    Research Board Warns for Crop Disease

    Photo: Taco Tuinstra

    Zimbabwe’s Tobacco Research Board (TRB) has advised tobacco growers to watch for crop diseases in the wake of heavy rains, reports  The Herald.

    When not properly managed, pests and diseases can drastically reduce yield and quality of tobacco. There are three key foliar diseases that are of major concern—angular leaf spot, frogeye leaf spot and Alternaria leaf spot. However, the TRB has established that a group of fungicides collectively known as strobilurins can be effective against both frogeye and Alternaria leaf spot diseases.

    In addition to the risk of crop disease, the heavy rains are presenting extra challenges, such as weed control and ridge maintenance.

    “One of the major challenges is leaching, a condition where elements such as nitrogen and potassium are washed beyond the root zone, making it impossible for the crop to access them, and deficiency symptoms may develop,” said George Seremwe, chairperson of the Zimbabwe Tobacco Growers Association.

    “Incessant rainfall patterns tend to lead to excessive soil moisture content, which promotes unlimited nutrient loss due to leaching, resulting in poor quality leaf,” said Victor Mariranyika, president of the Tobacco Farmers Union Trust. “It also disturbs other farm operations, thereby compromising profitability, with human resources and machinery possibly failing to cope.”

    Over 19,000 hectares have been put under irrigated tobacco crop in Zimbabwe for the 2023–2024 summer crop season, according to The Sunday Mail. This represents a 22 percent decline from the previous year.

    Statistics from the Tobacco Industry and Marketing Board (TIMB) showed that 19,202 ha have been planted compared to the previous year’s 18,901 ha.

    Currently, 112,906 growers have registered with the TIMB.

    Tobacco is Zimbabwe’s largest agricultural export and second-largest single commodity export after gold.

  • ISO for Ispire Malaysia

    ISO for Ispire Malaysia

    Image: Parradee

    Ispire Technology received ISO9001: 2015 Quality Management System, ISO14001: 2015 Environmental Management System and ISO13485: 2016 Quality Management System Medical Device certifications for its 31,000-square-foot manufacturing facility in Malaysia.

    Ispire offers a complete line of vape cartridges, pod systems, disposables and batteries.

    “Earning three ISO certifications at our Malaysian manufacturing facility is a testament to our team’s ability to quickly bring the facility up to some of the highest standards in the industry, allowing us to expand our gross margins, geopolitically de-risk our production and service other businesses who need manufacturing for their vape hardware,” said Ispire Technology Co-CEO Michael Wang in a statement.

    “Currently, our Malaysian manufacturing facility has already received initial orders and is quickly moving into production readiness. As the facility ramps up production, our gross margin is expected to increase due to the lack of a tariff when assembling products in Malaysia and then shipping them to the U.S.

    “This is in contrast to the 25 percent tariff incurred when shipping finished products from China. Additionally, by owning the factory, we also expect to be able to realize a profit on product assembly, which was formerly outsourced to a third party. We anticipate that these efficiency improvements will help drive gross-margin growth across the company’s full array of high-quality vaping products.”

  • Liquid Makers Get Another Shot at PTMA

    Liquid Makers Get Another Shot at PTMA

    Photo: alexkich

    Two e-liquid companies will be able to resubmit their marketing applications to the U.S. Food and Drug Administration following a court ruling, reports Bloomberg Law.

    On Jan. 3, the U.S. Court of Appeals for the Fifth Circuit ruled that the FDA acted “arbitrarily and capriciously” in rejecting the premarket tobacco product applications (PMTA) of Wages and White Lion Investments, doing business as Triton Distribution, and Vapetasia for approval to sell their products in the United States.

    The agency “sent manufacturers of flavored e-cigarette products on a wild goose chase,” telling them what would be needed to approve their products, and then denying all applications, the court said in an opinion by Judge Andrew S. Oldham. The FDA “never gave petitioners fair notice that they needed to conduct long-term studies on their specific flavored products,” Oldham said.

    In a dissenting opinion, Judge Catharina Haynes said the agency “properly fulfilled its statutory mandate by considering the relevant portions of Petitioners’ PMTAs and coming to a reasonable conclusion that marketing Petitioners’ products is not appropriate for public health.”

  • RAI Names VP Strategy and Transformation

    RAI Names VP Strategy and Transformation

    Photo: RAI

    Reynolds American Inc. appointed Wade Huckabee to the role of senior vice president of strategy and transformation, the company announced on its website. In this role, Huckabee will be responsible for the development and realization of the U.S. strategy and serve on the Reynolds American Leadership Team, effective Jan. 1, 2024.

    Huckabee joined the Reynolds organization in April 2016 as vice president of strategy and planning, where he oversaw development of the function, including building stronger analytical capabilities and retail insights. He was named senior vice president of combustibles in December 2018 and in 2019 assumed the role of general manager of the Reynolds organization’s traditional categories.

    Huckabee was appointed global head of revenue growth in 2022, where he was responsible for accelerating the BAT Group’s sales and category objectives in priority markets around the world. In 2023, he became group head of customer and commercial, adding the development of global trade marketing to his accountabilities.

    Prior to joining the Reynolds organization, his extensive experience in other consumer goods categories included roles in strategy and investor relations at Hanesbrands and progressive leadership roles in finance, revenue and margin management, and strategic accounts at Keurig Dr Pepper.

    In his new role, Huckabee will lead and oversee Reynolds’ strategy, encompassing key pillars related to commercial, organizational and regulatory strategies. A native Texan, Huckabee has Bachelor of Arts degrees in history and English from the University of Texas at Austin and a Master of Business Administration degree in finance from Pepperdine University in Malibu, California.

  • McKinney Specialty Labs launched

    McKinney Specialty Labs launched

    Willie McKinney

    Jan. 1, 2024, marked the official launch of McKinney Specialty Labs, a scientific organization with expertise in testing nicotine and other aerosolized products.

    “We are excited to announce the launch of McKinney Specialty Labs and to offer our scientific knowledge and regulatory expertise to support the growing market of inhalable products across different industries,” said Willie McKinney, CEO. “We believe that our commitment to science, quality, innovation and customer service makes us a preferred aerosol testing provider for companies of all sizes.”

    McKinney Specialty Labs provides a wide range of testing and consulting services to ensure that product quality and performance are maintained throughout the life cycle of the product: chemical analysis, physical testing, microbiological testing, toxicology testing and regulatory compliance.

    McKinney Specialty Labs employs nearly 100 experienced scientists and technicians with expertise in aerosol science, analytical chemistry, toxicology and regulatory compliance. The lab is equipped with state-of-the-art equipment and adheres to strict quality standards.

  • Court Approves Warehouse Monitoring

    Court Approves Warehouse Monitoring

    Image: Alexey Novikov

    The South African Revenue Service (SARS) will move forward with installing closed-circuit television cameras at tobacco warehouses, after defeating a legal challenge in the Guateng High Court, reports Daily Maverick.

    The surveillance plan was drafted to help plug fiscal gaps due to illicit tobacco trade. The South African government misses out on an estimated ZAR8 billion ($431.06 million) in revenue annually due to tobacco tax evasion.

    The Fair Trade Independent Tobacco Association (FITA), representing 80 percent of licensed cigarette manufacturers in Southern Africa took SARS to court in an attempt to stop the installation of the cameras. In two separate applications, 11 tobacco companies sought to prevent SARS from implementing the rule promulgated under the Customs and Excise Act.

    The tobacco companies argued that the new rule is unconstitutional and that it was an unjustified violation of the right to privacy, dignity and property.

    Acting judge Jacques Minnaar on Dec. 29 rejected their case, arguing, among other things, that companies applied for warehouse licenses in the knowledge that these are conditional on SARS officials having unrestricted access to install cameras.

    The companies were all aware of the installation of CCTV cameras at British American Tobacco and Gold Leaf in February 2023, the court added.

  • Ukraine Tobacco Taxes to Match EU’s by 2029

    Ukraine Tobacco Taxes to Match EU’s by 2029

    Image: andriano_cz

    Ukraine will reform its tobacco and fuel excise taxes, gradually introducing excises minimal for the European Union market over the next five years, reports Interfax.

    The country previously aimed to increase its tobacco excise tax rates to the EU’s minimal rates before 2025, but the anticipated windfall has since been eaten away by inflation due to the use of the hryvnia as its base rather than the euro. Under the new strategy, Ukraine’s tobacco excise tax rates will be tied to the euro.

    The government expects the measure to generate additional revenue equal to between 1.5 percent and 2.2 percent of GDP.

    Ukraine also plans to implement an electronic tracking system for tobacco products and e-liquids.

    The 2024-2029 National Revenue Strategy is one of the structural benchmarks of the cooperation program with the International Money Fund that Ukraine pledged to fulfill before the end of 2023.

  • Investors Challenge Juul Bailout

    Investors Challenge Juul Bailout

    Image: vectortatu

    A group of Juul Labs investors is challenging a November 2022 financial bailout by directors Nick Pritzker and Riaz Valani, alleging that the deal benefited insiders at the expense of other investors, reports The Wall Street Journal.

    A pioneer in the vaping business, Juul Labs went from dominating the U.S. market to fighting for its survival in a short time. Following its initial success, the company came under regulatory scrutiny over its marketing practices. Thousands of lawsuits alleging the company contributed to an “epidemic” of underage vaping took a toll on the company’s finances.

    After the Food and Drug Administration ordered its e-cigarettes off the market and a court stayed the order, Juul began exploring bankruptcy in June 2022.

    To avoid bankruptcy, Pritzker and Valani in September 2022 refinanced a Juul term loan and later that fall loaned Juul more money to cover operating costs. Finally, the two directors, along with Juul co-founders James Monsees and Adam Bowen, backstopped a sweeping legal settlement and made an equity investment in Juul.

    Juul, after approaching dozens of potential investors, closed a funding round in October 2023 that raised $1.27 billion. That sum included money that entities connected to Pritzker, Valani, and Juul’s two co-founders committed for Juul’s legal settlement and an additional $45 million from the same four investors.

    Entities tied to Valani and Pritzker now own nearly half of Juul, while most other investors have had their stakes sharply diluted amid the rescue.

    Affiliates of hedge fund D1 Capital Partners and two other investors sued Juul in October 2023 alleging that Pritzker and Valani “leveraged a distressed situation for their own personal gain to the detriment of Juul’s other stakeholders.”

    Juul in 2024 aims to raise another $330 million as it fights to keep its existing products on the U.S. market and submits new vaping products for federal authorization.