Nabil Y. Sakkab will retire as a member of Altria Group’s board of directors following the completion of his current term. Consequently, Sakkab will not stand for re-election to the board of directors at Altria’s 2024 annual meeting of shareholders, which Altria anticipates holding on May 16, 2024.
“Nabil’s contributions have significantly benefited Altria over the past 15 years,” said Kathryn McQuade, Altria’s independent chair of the board, in a statement. “We thank him for his long and distinguished service and wish him the very best upon his retirement.”
Sakkab chairs Altria’s innovation committee and is a member of the company’s executive, finance and nominating, corporate governance and social responsibility committees. He held a variety of positions at The Procter & Gamble Co. beginning in 1974. He retired in November 2007 as senior vice president, corporate research and development. He is a director of several privately held companies. He served as a director of Deinove from 2010 to April 2016, Givaudan from 2008 to March 2015 and Pharnext from 2012 to July 2020.
22nd Century Group has reduced the outstanding principal of its senior secured credit facility from approximately $22.1 million to approximately $14 million as part of an amendment and waiver process with its lenders.
The reduction reflects a waiver and repayment of the $7.5 million minimum cash balance required under terms of the original debenture agreements, which was held in an escrow account. The company also assigned an existing promissory note pertaining to the company’s previous holdings in Panacea Life Science Holdings as additional consideration in the debt reduction transaction.
In a nonmonetary exchange, the assigned value of the promissory note was allocated as $600,000 to further principal reduction and $2 million to a reduction in the put price associated with the lender’s outstanding warrants, which portion was subsequently cancelled.
The remaining principal loan balance of $14 million and the remaining $500,000 of the put price will be due at maturity in 2026 in accordance with the original terms of the debenture agreements. The company was not required to pay any cash to the lenders in connection with this transaction.
“We continue to actively manage our balance sheet, with a focus on executing our cost reduction initiatives. The reduction in principal amounts owed under the senior secured credit facility as a result of the amendment and waiver will provide for annual cash interest savings of approximately $0.5 million per year,” said Hugh Kinsman, chief financial officer of 22nd Century Group, in a statement.
Subsequent to the debt reduction, the company announced the consummation of a public offering with $5.25 million in gross proceeds, which will be used for general operating purposes.
Nearly 45 percent of participants who use Vuse Alto in a study completely switched away from cigarettes, according to the interim results of research conducted by Reynolds American Inc. (RAI).
The proportion of Vuse users who reported completely switching was higher for young adults aged 21–29 versus those who were 30 years or older; the proportion of Vuse users who reported completely switching was higher among minority demographics versus those who identified as non-Hispanic white; and the proportion of Vuse users who reported completely switching was higher among those who use menthol-flavored Vuse products versus those who use tobacco-flavored Vuse products.
For adults who smoke and had yet to switch completely, there was a greater reduction in cigarettes smoked per day for participants who used menthol-flavored Vuse products than those who used tobacco-flavored Vuse products.
The findings are part of a 24-month study, termed the Longitudinal Tobacco Use and Transitions Survey (LTTS), in support of RAI’s premarket tobacco product application for Vuse Alto.
Reynolds presented a summary of the interim results through the first year of the LTTS at the Food and Drug Law Institute Tobacco and Nicotine Regulatory Product Science Symposium on March 30, 2023, to an audience that included senior officials from the U.S. Food and Drug Administration’s Center for Tobacco Products as well as several prominent public health researchers.
James Murphy, global director of research and science, and Chris Junker, vice president of science and regulatory affairs, provided an overview of the study’s importance and interim results in a video.
In early October, the U.S. Food and Drug Administration issued marketing denial orders (MDO) for six flavored Vuse Alto-branded products. At the request of Reynolds, an appeals court stayed the order, allowing Reynolds to continue offering Vuse Alto menthol products pending review of the company’s formal challenge of the order.
Greenbutts and Filtrona have established a partnership to manufacture biodegradable filters for tobacco companies in the U.S.
Under the joint development agreement Filtrona will lease a manufacturing machine from Greenbutts to produce biodegradable filters using proprietary technology. The partnership supports the strategy of both companies to drive the industry’s transformation by providing alternative sustainable filter solutions to traditional cellulose acetate filters.
“In response to the detrimental impact of plastic pollution on our planet, there is an urgent need to address the No. 1 most littered item globally. Greenbutts has pioneered proprietary technology and advanced material science to bring a novel, performance-driven plastic alternative to the tobacco industry,” said Greenbutts CEO Tadas Lisauskas in a statement.
By partnering with Filtrona, this joint endeavor is set to transform the way cigarettes are manufactured, with post-consumer waste and our planet front of mind.
“Our certified biodegradable technology offers a new alternative to single-use plastic filters, providing a pathway for the industry to embrace environmental sustainability without compromising performance or consumer experience. By partnering with Filtrona, a company committed to driving positive change within the industry, this joint endeavor is set to transform the way cigarettes are manufactured, with post-consumer waste and our planet front of mind.”
We believe that by collaborating with other suppliers who share our environmental goals, we can meet the growing demand for sustainable products more rapidly.
“We recognize that our customers are increasingly seeking sustainable products, and we are on a journey with them to support this transformation alongside Greenbutts with our advanced filter technology and portfolio of renewable, degradable and sustainable filters that can meet their product and regulatory needs,” said Filtrona CEO Robert Pye.
“Today, Filtrona alone cannot meet the volume requirements in terms of sustainable filter conversion. We believe that by collaborating with other suppliers who share our environmental goals, we can meet the growing demand for sustainable products more rapidly. This joint development with Greenbutts is the first of many such collaborations which we will embark on to help drive the industry forward,” said Pye.
“We believe that true impact can be achieved through strategic collaboration, and that’s why we are partnering with Filtrona,” said Lisauskas. “Our dedicated innovation hub is committed to fostering new technology, collaboration and knowledge exchange, propelling the industry towards a more sustainable future.”
Of the 10 countries in the Southeast Asian region, five have banned e-cigarettes and vaping products, reports Malaya Business Insight, citing an the assessment by the Southeast Asia Tobacco Control Alliance (SEATCA).
The sale and use of vapes and e-cigarettes are already banned in Brunei, Cambodia, Laos, Singapore and Thailand, according to the SEATCA.
There are no bans in Myanmar and Vietnam while Indonesia, Malaysia and the Philippines regulate vapes and e-cigarettes. The SEATCA has urged the countries to strictly regulate the products.
The Philippines Court of Tax Appeals (CTA) granted part of a refund claim by Philip Morris Philippines Manufacturing in the amount of PHP32.04 million ($564,407), which represents its unused input value-added tax (VAT) traced to zero-rated sales in 2015, reports Business World Online.
The court ruling stated that Philip Morris was able to prove its entitlement to the amount by proving that sales invoices were actual shipments from the Philippines to foreign countries for export sales.
“The court finds that even without the reopening of the trial at the division level, the submissions made by Philip Morris clarifying certain tabular presentations/summaries of its alleged zero-rated sales may already be reconsidered,” Associate Justice Catherine T. Mahan said in the ruling.
Zero-rated sales are transactions made by VAT-registered taxpayers that do not translate to any output tax. Taxpayers must present official receipts that are attributable to a specific fiscal period, with the term “zero-rated” being written on them to qualify for a 0 percent rating.
Philip Morris previously sought a refund of PHP90 million covering excess input VAT for 2015, which was partially granted by the CTA Third Division—the commissioner of internal revenue (CIR) was ordered to issue a refund of PHP31.18 million to Philip Morris.
The CTA said the CIR failed to present new arguments that would call for a dismissal of the case while the CIR argued that the CTA should have rejected Philip Morris’ appeal since the export sales were not proven to be paid in acceptable foreign currency in line with the applicable rules. The CTA disagreed, stating Philip Morris has submitted acceptable bills showing that the shipments were paid for in acceptable foreign currency.
Japan Tobacco International is set to launch Ploom, its heated-tobacco product, on the Greek market, according to 2Firsts.
JTI plans to invest $3 billion in the global expansion of Ploom. Greece is the first planned market for promotion. JTI’s Greece subsidiary will be responsible for the Cyprus and Malta markets as well.
The company’s goal is to introduce Ploom in 25 countries. JTI also plans to invest €2 billion from 2023 to 2025 for the development of other heated-tobacco products.
Throughout his first year as director of the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), the agency has maintained a steadfast commitment to its core principles of sound science, strategic partnerships, health equity and transparency, CTP Director Brian King said in a recent interview.
King underscored the enduring importance of these principles. He emphasized that the center’s recent decisions and enforcement efforts have been grounded in comprehensive scientific analysis. This approach, he noted, ensures that product marketing and regulatory actions are well-informed and evidence-based.
Furthermore, the director highlighted the importance of teamwork, a skill honed through his background as a scientist. Scientific thinking, rooted in objective evidence evaluation, plays a pivotal role in CTP’s work. This scientific approach is instrumental in addressing the complexities of tobacco product regulation effectively, according to King, who also emphasized the importance of effective communication in conveying scientific findings and messages.
A significant focus of CTP’s work is promoting health equity in tobacco product regulation. King discussed efforts to address disparities in tobacco use, especially among youth and young adults. Notably, the CTP is working on product standards that would prohibit menthol as a characterizing flavor in cigarettes and all characterizing flavors in cigars. King views these standards as a major step toward reducing the appeal of these products, particularly among communities disproportionately affected, such as people of color, low-income populations and LGBTQ+ individuals.
To further advance health equity, the CTP has undertaken initiatives like the “Next Legends” campaign to educate American Indian and Alaska Native youth about the harms of e-cigarettes and providing Spanish-language adult cessation education resources.
During his tenure, the center welcomed Charlene Le Fauve as its first senior advisor for health equity, a crucial role in integrating health equity into the center’s programmatic plans and priorities, according to King.
Looking ahead to the next three to five years, the director stressed the importance of having a clear vision. The CTP is in the process of creating a new strategic plan with the involvement of internal staff and external stakeholders to ensure the center’s continued growth and adaptation in a dynamic regulatory landscape. The plan, to be released by December 2023, will provide a roadmap for CTP’s future, aligning its actions with changing times and the goal of reducing tobacco-related diseases and deaths in the United States.
The sale of flavored heated-tobacco products (HTPs) will be banned in the Czech Republic, effective today, reports Expats.cz. A European directive requires that EU member states incorporate the ban into their legal frameworks effective Oct. 23. The directive does not allow for a transitional period for sale of existing stock.
Slightly more than half of HTP users prefer flavored tobacco, according to Jiri Sochor, spokesperson for JT International. Sochor noted that based on U.S. ban results, some people reverted to traditional combustible cigarettes.
The ban will not take effect simultaneously in neighboring countries, Sochor said, noting that only Germany has introduced it. Due to this, people are likely to purchase flavored products abroad.
Flavored heated-tobacco products generate about CZK2.9 billion ($125.16 million) in consumer taxes annually, according to Sochor.
The government of Portugal wants to increase excise taxes on e-liquids in 2024. Nicotine e-liquids will have an excise tax increase of 4 percent, up to €0.351 ($0.373) per milliliter, and nicotine-free e-liquids will be subject to a €0.175/milliliter excise tax.
Nicotine-containing and nicotine-free e-liquids will also be subject to a minimum tax corresponding to 25 percent and 12.5 percent of the tax applicable to traditional cigarettes, respectively.
“Increasing the taxation of e-liquids in such a way will make vaping a less attractive option to consume nicotine and prevent low[-income] and middle-income groups from accessing the products,” said World Vapers Alliance Community Manager Alberto Gomez Hernande in a statement.
“It risks pushing vapers back to smoking and preventing smokers from switching due to affordability reasons. Portugal should follow the steps of countries that are successfully reducing smoking rates by encouraging smokers to switch, such as the United Kingdom and Sweden; instead, Portugal has the highest excise tax rate on vaping products in the EU.”
“The Portuguese government should follow a risk-based approach to the taxation of e-liquids,” said Hernandez. “Since the risk of vaping is 95 percent lower, taxes should be 95 percent lower too.”
“If Portugal wants to meet the goals proposed in its National Plan Against Cancer and the European Cancer Plan, it needs to keep alternatives to smoking available and affordable,” Hernandez said. “Sweden is becoming the first smoke-free country in the world this year while Portugal is taking decisions in the opposite direction.”
In related news, Portugal will delay implementation of the EU Tobacco Directive and proposed legislation by Portuguese government that would ban flavored heated-tobacco products. The ban was supposed to go into effect Oct. 23, 2023, but will be delayed in Portugal until 2024, according to 2Firsts.
