Category: Featured

  • Former STMA Head Under Investigation

    Former STMA Head Under Investigation

    Photo: promesaartstudio

    Former head of China’s State Tobacco Monopoly Administration (STMA) Ling Chengxing is under disciplinary review and supervisory investigation, reports China Daily.

    Ling is being investigated on suspicion of violating Communist Party disciplines and China’s laws, according to the Communist Party of China Central Commission for Discipline Inspection and the National Supervisory Commission.

    Ling was head of the STMA from May 2013 to July 2018.

    The STMA is on the list for the 20th CPC Central Committee’s second round of inspection, which began Oct. 10, and the eighth inspection team of this round recently began its work at the administration.

  • WHO Urged to Follow Sweden’s Example

    WHO Urged to Follow Sweden’s Example

    Image: weyo

    The World Health Organization should look at Sweden for inspiration when deciding how to effectively reduce smoking-related deaths, according to the Institute for Tobacco Studies (ITS).

    In a paper published on Qeios, ITS’ principal investigator, Lars M. Ramstroem, says Sweden provides a prime example of how products that don’t burn tobacco can benefit public health. Sweden has the lowest smoking prevalence among men in the European Union and consequently the lowest tobacco-related mortality.

    The “WHO needs to apply all science-based strategies to reduce tobacco-related deaths,” Ramstroem said in a statement.

    “The meeting of the world’s health leaders in Panama in November, the COP10, represents a unique opportunity to take a fresh look at the most recent evidence with an open mind. After all, if Sweden had followed WHO’s advice from 20 years ago and banned snus, tobacco-related deaths in Sweden would have been much higher, and the only unintended beneficiary profiting from such advice would be the cigarette industry,” Ramstroem and his colleagues write in the paper.

    “[I]ncreasing number[s] of scientists and national governments believe that these new products represent an opportunity that can accelerate the demise of smoking. Because they don’t burn tobacco, they are estimated to be far less harmful than smoking. To the extent that they can act as a substitute and displace smoking, thereby improving public health.”

    Ramstroem said most “tobacco-related” deaths are in fact “smoking-related” deaths caused by repeated inhalation of smoke emitted when tobacco is lit on fire.

    “When burning is taken out of the equation, the harm can be dramatically reduced. We have known for decades that people smoke for nicotine but die from the tar,” the paper says.

    If Sweden had followed WHO’s advice from 20 years ago and banned snus, tobacco-related deaths in Sweden would have been much higher.

    Lars M. Ramstroem, principal investigator, ITS

    In addition to citing the experience of Sweden, the paper urges policymakers to study the examples of Norway, Japan or New Zealand. “Norway is now following a similar trajectory as Sweden, with daily smoking being at record-low levels and virtually on the brink of extinction among some population groups, largely due to snus,” the paper’s authors wrote.

    In Japan, a large number of smokers have switched to heated-tobacco products, contributing to a decline in smoking from around 20 percent in 2014 to 13 percent in 2019, while in New Zealand, vaping helped reduce daily smoking to 8 percent and contributed to rapid fall in smoking rates even among Pacific and Maori populations where traditional interventions have been failing.

    The paper also calls on the delegates to the COP10 to look at the real-world scientific evidence in making decisions during the meeting.

    “When it comes to smoking, the WHO doesn’t need to reinvent the wheel: Just follow the science (and Sweden) this time, for the sake of 1 billion smokers who aren’t lucky enough to live in Sweden,” the paper says.

  • Alliance One Malawi Spends Millions on CSR

    Alliance One Malawi Spends Millions on CSR

    Photo: Taco Tuinstra

    Alliance One Malawi has spent roughly MKW442 million ($384,721) on its corporate social responsibility programs over the last two years, according to The Nyasa Times.

    The company renovated and constructed new classrooms for more than 22 primary schools over the last two years, according to Fran Malila, corporate affairs manager.

    “As a corporate responsibility entity, Alliance One thought it wise to renovate as well as construct new classroom blocks in these 22 primary schools so that pupils who are future leaders of this country should learn in [a] better environment,” said Malila. “In the process, we are also fighting child labor as our aim is to see every kid to go to school and not be used as a source of labor in tobacco fields.”

    The renovated schools have led to higher student enrollment and retention rates.

    According to Malila, the company also constructed a postnatal ward and donated various medical equipment to Mzuzu Central Hospital’s pediatric ward.

  • Morocco to Hike Duties on Disposables

    Morocco to Hike Duties on Disposables

    Photo: alexlmx

    Morocco will increase customs duties on e-cigarettes under the 2024 budget, reports Morocco World News.  

    The import duties would hike the levies on disposable electronic cigarettes from 2.5 percent to 40 percent. The goal of the increase is to apply the same import duty rate to disposable electronic cigarettes as that applied to other electronic cigarettes for the 2023 fiscal year, according to the Ministry of Economy and Finance.

    The 2024 draft budget also proposes an increase in import duty from 2.5 percent to 30 percent for certain consumer products and equipment. This increase would “strengthen the protection of local production of these products and equipment and promote the establishment of production units in Morocco.”

  • IQOS and Zyn boost PMI quarter

    IQOS and Zyn boost PMI quarter

    Photo: Swedish Match

    Philip Morris International reported net revenues of $9.14 billion in the third quarter of 2023, up 13.8 percent from the comparable 2022 quarter. Its operating income rose 13.5 percent to $3.37 billion.

    PMI sold 193.6 billion cigarettes and heated-tobacco units in the third quarter of 2023, up 2.2 from the 2022 quarter. Shipments of heated-tobacco units alone increased 18 percent to 32.5 billion. Oral product shipments jumped 100 percent to 209 million cans, largely as a result of PMI’s 2022 acquisition of Swedish Match.

    Smoke-free products generated $3.3 billion in net revenues during the quarter, an increase of 35.6 percent over the comparable 2022 period. Smoke-free products now account for 36.2 percent of the company’s total net revenues.

    PMI estimated the total number of IQOS users at approximately 27.4 million by the quarter’s end. Approximately 19.7 million of those had switched to IQOS and stopped smoking, according to the company.

    Zyn nicotine pouch shipment volume in the U.S. totaled 105.4 million cans, representing growth of 65.7 percent versus third-quarter 2022 Swedish Match shipments of 63.6 million cans.

    “We delivered a very strong performance in the third quarter, surpassing $9 billion in quarterly net revenues for the first time and generating record quarterly adjusted diluted EPS [earnings per share] of $1.67, representing currency-neutral growth of 20.3 percent,” said PMI CEO Jacek Olczak in a statement.

    “This reflects continued excellent business momentum, driven by strong IQOS performance, resilient combustible trends and the exceptional growth of Zyn, which has surpassed our expectations yet again.”

  • PMI Applies to Sell IQOS Iluma in the U.S.

    PMI Applies to Sell IQOS Iluma in the U.S.

    Photo: vfhnb12

    Philip Morris International Oct. 20 submitted premarket tobacco product applications (PMTAs) and modified risk tobacco product applications (MRTPAs) for IQOS Iluma heated tobacco products with the U.S. Food and Drug Administration (FDA).

    IQOS Iluma products are PMI’s most-innovative heated tobacco products. They deliver substantially similar reductions in the formation of harmful and potentially harmful constituents as earlier versions of IQOS products authorized by FDA

    According to PMI, IQOS Iluma has demonstrated higher rates of full switching by adults who smoke and improved consumer satisfaction in many countries.

    IQOS Iluma products rely on a fundamentally different heating technology from previous versions of IQOS products and contain numerous technological advancements including improved device and battery longevity.

    IQOS Iluma products are currently available in 27 markets internationally

    PMI’s applications are supported by a thorough scientific assessment, including aerosol chemistry, in vitro toxicology, a pharmacokinetic study, and consumer perception and behavior studies, as well as the comprehensive scientific dataset generated with previous versions of the IQOS system

    The IQOS Iluma devices operate on the Smartcore Induction System that heats tobacco from within Terea Smartcore Sticks—heated tobacco sticks designed to be used only with IQOS Iluma devices

    PMI has submitted applications for three Iluma devices and five variants of the tobacco sticks: Terea Blue, Terea Green, Terea Sienna, Terea Bronze, Terea Amber

    Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S.

    Stacey Kennedy, president Americas and CEO of PMI’s U.S. business

    “Tens of millions of American adults today smoke cigarettes and will likely continue to do so. They should have a range of scientifically substantiated better alternative nicotine products to choose from, and PMI is committed to providing them with new choices,” said Stacey Kennedy, president Americas and CEO of PMI’s U.S. business, in a statement.

    “Internationally, IQOS Iluma products have demonstrated how ground-breaking consumer-centric innovation can lead more adults to stop smoking. We believe that same success can be replicated in the U.S. and drive a rapid decrease in smoking rates among adults. These are strong applications, and we urge the FDA to prioritize them for review.

    “Since 2008 PMI has invested more than $10.5 billion to scientifically research, develop, and commercialize smoke-free products, an investment that was further bolstered last year through our acquisition of Swedish Match. We are focused on providing adults who smoke with alternatives that can reduce their risks compared with smoking and help make America cigarette-free.”

    PMI will have the full rights to commercialize all IQOS products in the U.S. as of April 30, 2024, per the terms of an agreement with Altria Group, Inc. ending the companies’ commercial relationship covering IQOS in the U.S.

  • FDA Prevails in Logic Challenge

    FDA Prevails in Logic Challenge

    The U.S. Food and Drug Administration has defeated Logic Technology Development after the e-cigarette manufacturer asked the courts to block the regulatory agency’s market ban on Logic’s menthol-flavored e-cigarette products, according to media reports.

    Logic filed a petition for review in the U.S. Court of Appeals for the Third Circuit, alleging the FDA violated the Administrative Procedure Act when it denied Logic’s premarket tobacco product application to market its menthol-flavored vaping products. The court denied that petition Thursday after concluding the FDA “based decisions on scientific judgments.”

    Logic alleged it was arbitrary and capricious for the FDA to apply the same regulatory framework to menthol that it used to remove fruit- and dessert-flavored e-cigarettes from commerce. The Third Circuit Court entered a stay on the FDA’s marketing denial orders (MDOs) in December 2022. The MDOs were the FDA’s first-ever MDOs directed at menthol e-cigarette products.

  • Packaging Market to Top $21 Billion

    Packaging Market to Top $21 Billion

    Photo: Taco Tuinstra

    The global tobacco packaging market will reach a value of around $21.05 billion by 2029 increasing at a compound annual growth rate of 3.2 percent, according to a new report by Precedence Research.

    The Asia Pacific region has established itself as the dominant market, commanding a 34 percent market share in 2022, and it is poised to experience the most rapid growth throughout the projected period. In particular, China stands out as the largest tobacco exporter and manufacturer. The nation is projected to become the global leader in the tobacco packaging market by 2032.

    Many tobacco packaging developments are driven by regulation, according to Precedence Research. For instance, in July 2022, India’s Ministry of Health and Family Welfare, enacted regulatory changes to the Cigarettes and Other Tobacco Products (Packaging and Labeling) Rules, 2008, introducing updated health warning requirements for all tobacco product packaging within the country.

    Numerous countries have instituted stringent measures to reduce smoking rates and safeguard public health. These regulations encompass requirements for graphic health warnings, mandates for plain packaging, and strict limitations on tobacco advertising.

    Meanwhile, suppliers of tobacco packaging are shifting toward recyclable and eco-friendly solutions. This transition reflects a broader global trend towards sustainability and environmental consciousness, driven by consumer preferences, regulatory pressures and corporate responsibility initiatives, according to Precedence Research.

    In March 2023, ITC of India reaffirmed its commitment to sustainability, emphasizing its ongoing endeavors to minimize plastic waste. The company said it reduced the plastic waste it generated by 60,000 metric tons. ITC is actively exploring environmentally friendly alternatives to single-use plastics in their tobacco product packaging, focusing on materials such as recyclable and biodegradable paperboards.

    In April 2022, British American Tobacco introduced its Vype e-cigarettes in packaging crafted from a blend of recyclable paperboard and other materials. BAT has committed to an ambitious sustainability goal to ensure that all Vype packaging becomes fully recyclable by 2023.

    In May 2022, Japan Tobacco announced its intention to render all cigarette packaging recyclable by 2025. This initiative involves the utilization of a hybrid composition consisting of recyclable paperboard and plastic materials.

    Like many other industries, the global tobacco packaging market has undergone substantial disruptions and transformations due to the Covid-19 pandemic. Lockdowns, travel restrictions and labor shortages disrupted the manufacturing and transportation of packaging materials. This resulted in delays, extended lead times, and increased manufacturer costs. To address these challenges, companies adapted by diversifying their supplier base, optimizing inventory management and exploring alternative sourcing options.

    Covid-19 has also significantly altered consumer behavior, consequently impacting the tobacco industry and, by extension, the packaging market. Measures such as social distancing, health concerns and economic uncertainties led some smokers to reduce or quit smoking altogether. This shift in demand prompted tobacco companies to reassess their product offerings and packaging strategies. Some manufacturers started offering their products in smaller pack sizes, for example.

  • ITC Reports ‘Resilient’ Cigarette Business

    ITC Reports ‘Resilient’ Cigarette Business

    Timon Schneider/Wirestock

    ITC’s cigarette business demonstrated resilience in the quarter that ended Sept. 30, the company announced in a trading update.

    Net segment revenue and segment profit before tax and interest were up 8.5 percent and 8 percent year-on-year, respectively.

    Stable fiscal policies, along with a crackdown by law enforcement on illicit tobacco sales, allowed the company to claw back sustained volumes from the black market, boosting demand for Indian tobaccos and bolstering revenue to the exchequer.

    Meanwhile, ITC continued fortifying its product portfolio through innovation, premiumization and enhancing product availability, “backed by superior on-ground execution.”

    Several recently launched brand variants launched continue to perform well, according to the company.

    While the cost of leaf tobacco and inputs escalated during the quarter, the company was able to mitigate these developments through improved mix, strategic cost management and calibrated pricing.

    During the quarter, ITC’s IndiVision subsidiary (IIVL) received regulatory approvals for its facility to manufacture nicotine and nicotine derivative products conforming to U.S. and EU pharmacopoeia standards.

    ITC believes that its unique crop development capabilities, along with its ability to provide complete traceability and assure sustainability across the value chain, will establishing IIVL as a trusted partner for high quality nicotine/nicotine derivative products.

    For the company’s paperboards, paper and packaging segments, the quarter was characterized by competition from low-priced Chinese suppliers and muted demand in export markets, along with a sharp reduction in global pulp prices. Domestic demand was also relatively subdued in certain discretionary categories

    ITC believes the drop in net sales realization and global pulp prices are likely to have bottomed out, however, and says it detected “green shoots of revival” in demand toward the end of the quarter

  • NJOY Sues Disposable Vapes Manufacturers

    NJOY Sues Disposable Vapes Manufacturers

    Photo: alexkich

    NJOY has filed litigation against 34 manufacturers, distributors and online retailers of illicit disposable e-vapor products that are unlawfully marketed and sold in California and other U.S. states. The suit alleges that these companies manufacture, distribute, market and sell products that violate California’s flavor ban law, are unlawful under federal law and subject to action by the U.S. Food and Drug Administration, and illegally compete against companies that comply with state and federal laws.

    The suit seeks a nation-wide injunction against the import, marketing and sale of these illicit products and significant compensatory and punitive damages.

    “These companies knowingly violate federal and state laws and need to be held accountable,” said Murray Garnick, executive vice president and general counsel of NJOY’s parent company, Altria Group, in a statement. “Today there are two markets—one for those who play by the rules and one for those who flagrantly ignore them. We are taking this action because the current state of the illicit e-vapor market is intolerable, and we must see more action from FDA and others.”

    Filed in the United States District Court for the Central District of California, the litigation is brought under four claims: unfair competition, false advertising, false advertising in violation of the Lanham Act and violation of the Prevent All Cigarette Trafficking Act of 2009.

    Named defendants in the suit manufacture and distribute illicit disposable e-vapor products which include  brands such as Breeze, Elf Bar, EB, EB Create, Esco Bar, Flum, Juice Box, Lava Plus, Loon, Lost Mary, Mr. Fog and Puff Bar. U.S. defendants include companies doing business in Arizona, California, Delaware, Florida, Michigan, Minnesota, New Jersey, New York and Texas. Foreign Defendants are all based in China.

    None of the Defendants has received premarket authorization from the FDA, according to NJOY.  

    Despite a ban on the sale of flavored tobacco products that went into effect in December 2022, flavored vapor products make up more than 97 percent of the California market according to a recent study commissioned by Altria.

    NJOY’s action against disposable vapor product manufacturers follows a complaint to the International Trade Commission by R.J. Reynolds Tobacco Co. charging multiple manufacturers, distributors and retailers of disposable vaping devices with unfair importation.