Category: Featured

JT Ups Forecast on Strong Quarter

Photo: JT Group
The JT Group reported revenue of ¥2.16 trillion ($14.29 billion) in the third quarter of 2023, up 7.4 percent over the comparable 2022 quarter. At constant currency exchange rates, core revenue increased 5.9 percent to ¥2.05 trillion. Adjusted operating profit at constant exchange rates jumped 5.9 percent to ¥675.5 billion. On a reported basis, the adjusted operating profit was ¥664.4 billion, up 4.2 percent from the 2022 quarter.
“The JT Group posted another set of strong results for the third quarter. In particular, the tobacco business reported solid growth across its indicators, driven by continued market share gains and robust pricing,” said JT Group President and CEO Masamichi Terabatake in a statement.
“We are accelerating investments in HTS to establish the foundation of our future growth, and these investments are progressing as planned. The market share of Ploom X in the HTS segment in Japan is steadily increasing with share exceeding 10 percent in the periods of July to September 2023, despite a competitive business environment.
“In addition, since July 2023, we have launched Ploom X in Switzerland, Poland, Hungary, Romania and Greece, and plan to roll it out in Kazakhstan in early November. We expect to continue the geographical expansion of Ploom X, to reach 28 markets by year end 2024.
The JT Group increased its full-year forecast for adjusted operating profit at constant currency by ¥34 billion to account for the stronger year-to-date top-line growth of the tobacco business.
October 31, 2023
Egypt Approves New Cigarette VAT

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Egypt will impose a new value-added tax of EGP0.50 ($0.02) on locally sold tobacco products, reports Ahram Online.
On Oct. 29, the House of Representatives approved an amendment to the 2016 VAT law to allow for the new duty, which will apply to both “hot” tobacco (cigarettes) and “liquid” tobacco (vapes), according to Fakhri El-Fiqi, head of the House’s Planning and Budget Committee.
Egypt’s tobacco market has been in turmoil in recent months, with consumers facing cigarette shortages and price hikes, among other challenges.
“The new amendment will also encourage tobacco companies to increase production in a way that shall stem the rise in cigarette prices and satisfy consumers,” said El-Fiqi, who predicted the next tax would generate up to EGP8 billion in revenues for the state budget.
Some lawmakers praised the measure as method to discourage smoking in line with World Health Organization recommendations.
“There is no question that the hike in cigarette prices will push more citizens, particularly young people, to give up smoking,” said Hesham El-Hosary, chairman of the House’s Agriculture and Irrigation Committee.
Despite the recently announced tax hike, cigarettes in Egypt are still cheap compared to other countries. In France, for example, some brands of cigarettes sells for the equivalent of EGP600 per pack, according to Ayman Abul-Ela, deputy chairman of the House’s Human Rights Committee.
October 30, 2023
Altria Urges Action Against Illegal Vapes

Photo: Malcolm Griffiths
A booming illegal disposable flavored vape market is hurting sales of Altria Group’s authorized products, according to Altria Chief Financial Officer Sal Mancuso.
Speaking during a call with media and financial analyst, Mancuso noted that traditional cigarette sales had dropped even more than usual in the third quarter of 2023. The decline, he said, was caused by inflation and economic issues influencing customers as well as the heightened usage of illegal flavored disposable e-cigarettes.
Mancuso also observed that there appeared to be more switching between different categories than initially assumed and that e-cigarettes alone were causing a 1.5 percent to 2.5 percent reduction in traditional cigarette industry volumes.
R.J. Reynolds Vapor Co. leads the U.S. vapor market with a 41.8 percent share, per the latest Nielsen convenience store report released Oct. 7.
Njoy, which Altria purchased for $2.75 billion in June, has struggled to increase its No. 3 market share.
“The current state of the (vaping) market is intolerable for both legitimate manufacturers and consumers,” Altria CEO Billy Gifford said during the call. “The regulated market is being overrun by illegal flavored disposable e-vapor products made and distributed by companies violating virtually every rule and guidance FDA has issued since 2016. A lot of these products are imported. They’re imported illegally and then they’re sold illegally.”
Saying a “strong course correction is needed,” Gifford noted that Altria has filed federal lawsuits in California against 34 organizations that include manufacturers, distributors and online retailers.
October 30, 2023
South Korea: Smoking Down After Covid

Photo: Taco Tuinstra
The smoking rate in South Korea decline in the wake of the Covid-19 pandemic, reports The Korea Bizwire, citing figures from the Community Health Survey.
On Oct. 26, the Korea Disease Control and Prevention Agency (KDCA) released the results of an analysis of changes in the Community Health Survey conducted before and after the pandemic.
The smoking rate among adults decreased by 1.8 percentage points, dropping from 21.2 percent before the pandemic to 19.4 percent after. The smoking rate for men also saw a decrease of 3.8 percentage points, going from 39.6 percent to 35.8 percent during the same period.
The KDCA utilized the average figures for the 2017 to 2019 period as the pre-COVID index and the data from 2020 to 2022 as the post-Covid index.
October 30, 2023
JT Launches Ploom X Advanced in Japan
Image: JT
Japan Tobacco announced the launch Ploom X Advanced, a new model of heated tobacco device that has evolved in terms of taste and user comfort.
The company believes the new device will play a significant role in its mid- to long-term business strategy.
According to JT, the new device represents a significant improvement over the current model and incorporates advanced features, including:
An upgraded heating technology, dubbed “Power Heatflow,” which increases the maximum heating temperature from 295 degrees Celsius to 320 degrees Celsius to provide a richer flavor experience.
A new automatic heating function that automatically starts heating when a stick is inserted into the device.
Reduced charging time from approximately 110 minutes for the current model to approximately 90 minutes.
The device will be available at convenience stores and tobacco retailers nationwide in Japan starting on Nov. 21, 2023, at a suggested, tax-included retail price of ¥1,980 ($13.22).
Following the launch of Ploom X Advanced, JT will discontinue sales of the current Ploom X model in Japan.
October 30, 2023
Leaf Traders Agree to Higher Floor Prices

Photo: PMFTC
Farmers and buyers have agreed on new floor prices for Philippine tobacco for the next two trading years, reports The Inquirer.
The floor price for Virginia tobacco grades will increase by PHP9.90 ($0.17) per kg, while that for burley and native tobacco will go up by PHP5.90 and PHP3.90 per kilo, respectively, according to the National Tobacco Administration (NTA).
“We aim to improve our industry by helping one another to balance the economic significance of tobacco as one of the highest contributors to the government coffer,” said Agriculture Undersecretary Deogracias Savellano.
Tobacco farmers have been pushing for higher floor prices since earlier this year, citing an increase in imports and labor.
The NTA convenes the tripartite conference every two years to review and fix tobacco floor prices based on factors such as the world market, production costs and profit margins for farmers, dealers, manufacturers and exporters.
In 2022-2023, the floor prices of Virginia top grades were between PHP86.10 and PHP87.10 per kg. High grades of burley attracted PHP72.10 to PHP75.10 per kg, while the floor price for the native top grade was at PHP77.10 per kilo.
NTA data show that the tobacco industry contributed PHP149.7 billion in revenues to the government in 2020.
The sector provides livelihoods to at least 2.1 million people, including at least 430,000 farmers and farmworkers, the NTA said.
October 29, 2023
Third of Irish Youngsters Vape: Study

Photo: Timothy Donahue
More than a third of Irish people aged 13 to 16 years old currently vape without having smoked before, reports The Irish Times, citing new research commissioned by Foroige Sligo.
After questioning 900 young people aged 10 to 24, the study found that across all age groups, there is a link between appearing “cool” and vaping. It also found that vaping allows some young people to feel connected to their peers.
Many respondents felt that the marketing of vapes targets young people with a “toy-like” attraction and inventiveness of products in terms of flavor, color, and personalization.
Josephine Lally, an independent social researcher who conducted the study, said she was struck by how vaping served as a tool for participation in social groups.
“It has become a part of their day to day life,” she was quoted as saying. “If you mention conventional cigarettes they’d say, ‘no way, I wouldn’t smoke’. They perceive vaping to be safer and that is an issue,” she said.
To tackle youth vaping, the research recommended consistency in public health messaging and a direct campaign to inform young people and their families about vaping.
October 29, 2023
King: Progress Implementing Reagan-Udall Suggestions

Photo: GTNF
The U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) has made significant progress in addressing the recommendations made by an expert panel facilitated by the Reagan-Udall Foundation, CTP Director Brian King said in a recent update.
Key areas of focus include cross-cutting initiatives, science and application review, regulations and guidance, compliance and enforcement, public education campaigns, and resource development.
According to King, the CTP is working on a new strategic plan set to be released by December 2023, which includes cross-cutting themes like science, transparency, stakeholder engagement and health equity. The center has solicited extensive feedback from both internal and external stakeholders, aiming to create a robust and inclusive plan.
Regarding science and application review, the CTP has processed more than 26 million deemed products’ applications and is committed to addressing the remaining applications efficiently while ensuring scientific accuracy and legal compliance. It has also developed resources and engaged with stakeholders to enhance the premarket application review process.
In the realm of compliance and enforcement, the CTP has taken various actions to curb the sale of illegal tobacco products, particularly those appealing to youth. They have issued warning letters and complaints for civil money penalties, demonstrating their commitment to enforcing the law.
Public education campaigns continue to play a crucial role in preventing youth tobacco product use. The CTP is actively seeking input and aims to share updated campaign information soon.
The CTP recognizes the importance of their staff and is working on enhancing their workforce development. They are also exploring options for securing user fees to support regulation efforts and requesting additional funding in the president’s fiscal year 2024 budget.
October 29, 2023
Kenya Urged to Hike Excise Duties

Photo: Rodworks
Kenya should increase its cigarette excise duties in line with World Health Organization guidelines, according to coalition of health experts, tobacco control advocates and national development policy specialists, reports People Daily Kenya.
The call comes in response to the government’s 2023-2024 financial budget, which for the first time in a decade maintains cigarette tax levels at their current levels.
A 2019 study by the National Taxpayers Association (NTA) proposed to the government to increase the excise duty applicable to cigarettes and to apply a uniform rate.
Kenya taxes filterless cigarettes at lower rates than filtered products—and approach that falls short of the recommended WHO best practices for tobacco taxation, according to the study.
NTA CEO Irene Otieno, says that despite efforts to control tobacco consumption in Kenya over the last decade, more than 2.5 million adults use tobacco products.
October 29, 2023
Cigarette Production Plunges in Pakistan

Photo: hassan
Tobacco companies in Pakistan produced 43.9 billion cigarettes in 2022-2023, down from 64.7 billion in the previous fiscal year, reports The News International, citing figures from the Federal Board of Revenue’s (FBR) track-and-trace system.
The country’s leading manufacturers, Pakistan Tobacco Co. and Philip Morris International, suffered year-to-year production declines of 32 percent and 39 percent, respectively. The production of Khyber Tobacco, by contrast, jumped 48 percent in the most recent financial year.
The FBR collected tobacco revenues of PKR62.9 billion ($224.3 million) from July to September this year, compared with revenues of PKR177.7 billion in the comparable 2022 quarter.
The FBR undertook 1,447 “actions of enforcement and seizure with confiscation” during the most recent financial year, according to FBR Project Director of Track and Trace Zaheer Qureshi
The government is reportedly exploring strategies to boost revenue as part of an anticipated mini-budget in December.
During a discussion on tobacco taxes, FBR officials attributed lamented the challenges posed by a limited workforce, logistical hurdles and an undocumented economy.
October 29, 2023