Category: Featured

  • Cigarette Makers Turn to Menthol Substitutes

    Cigarette Makers Turn to Menthol Substitutes

    Image: Marisela

    Cigarette manufacturers are deploying synthetic chemicals that mimic menthol’s cooling sensations in U.S. states that have banned the additive, according to a new study from Duke Health.

    Menthol cigarettes are banned in California and Massachusetts and tobacco companies are bracing for a federal ban on the substance later this year.

    In a Research Letter appearing online Oct. 9 in JAMA, researchers from Duke Health and Yale University identified new compounds that achieve similar cooling sensations to menthol, which has long been added to tobacco to reduce harshness.

    “We found that tobacco companies are adding a synthetic cooling agent called WS-3 to these new “non-menthol” cigarettes,” said Sven-Eric Jordt, associate professor in the department of anesthesiology at Duke University School of Medicine and senior author of the study, in a statement. “The added amounts are sufficient to produce robust cooling sensations, with some brands having more cooling activity than their menthol equivalent cigarettes.”

     When California’s menthol ban was enacted in December 2022, R.J. Reynolds Tobacco Co. and ITG Brands introduced non-menthol cigarette brands as menthol substitutes, with similar packaging and marketing strategies as their menthol cigarette brands.

    Sairam V. Jabba, a senior research scientist at Duke and lead author of the study, measured whether cigarettes purchased in the two states with bans contain chemicals that activate the cold/menthol receptor, which senses environmental cold temperature and is activated by menthol.

    “We found that four of the non-menthol cigarette products, all manufactured by R.J. Reynolds, robustly activated the cold/menthol receptor, and this cooling activity was stronger than of their menthol counterparts,” Jabba said.

    “These results signify that these new ‘non-menthol’ cigarettes can produce the same cooling sensations as menthol cigarettes and thereby facilitate smoking initiation,” he said. “Allowing these cigarettes to be marketed would nullify several of the expected public health benefits from state and federal bans of menthol cigarettes.”

    A chemical analysis of the “non-menthol” cigarettes detected a synthetic cooling agent, named WS-3, in four of the nine currently marketed products. WS-3 produces a cooling effect, but lacks the minty smell of menthol, allowing these products to bypass regulations. The researchers also detected vanilla and tropical flavor chemicals in “non-menthol” cigarettes, contained in flavor capsules in the filters.

    “Our discovery of restricted flavors such as vanilla, which have characteristic odor and taste, demonstrates that Big Tobacco is ignoring current federal regulations banning the addition of characteristic flavors to cigarettes. More importantly, vanilla flavor is a very popular among children and youth, making it easy for them to initiate on these cigarettes,” Jordt said.

  • Zimbabwe Shifts Focus to Value Addition

    Zimbabwe Shifts Focus to Value Addition

    Photo: Screaghin

    Having nearly achieved its targeted leaf volumes, Zimbabwe is shifting its emphasis to promoting exports of value added tobacco products, reports The Herald.

    The Tobacco Value Chain Transformation Plan (TVCTP) aims to capture more value from the tobacco industry by producing larger crops and moving beyond leaf cultivation. Among other things, it calls on farmers to produce a tobacco crop of 300 million kg by 2025.

    In the most recent market season, Zimbabwe sold more than 290 million kg of tobacco. The seedbed for the country’s 2023-2024 is 15.5 percent larger than in the previous season, making it likely that Zimbabwe will achieve its target volume ahead of schedule.

    “There has been an increase in volume as a result of post-harvest loss reduction and yield increase,” said Information, Publicity and Broadcasting Services Minister Jenfan Muswere following an Oct. 10 cabinet meeting. “During the 2022-2023 season a record 296.1 million kilograms of tobacco, worth $896 million was produced.

    Satisfied with the progress made in increasing volumes, the sector is now turning its attention to value addition.

    “There are opportunities to increase the level of value addition and beneficiation of tobacco into cut rag and cigarette production from 2 percent of tobacco produced to 30 percent,” said Muswere. “The construction of a new cigarette manufacturing plant and cut rag processing factories is underway and this will result in an increase in processing capacity by 50 percent in the first half of 2024.”

  • COP10 to Reject Harm Reduction: Briefing

    COP10 to Reject Harm Reduction: Briefing

    Photo: Alesmunt

    Tobacco harm reduction will be absent at the 10th Conference of the Parties (COP10) to the Framework Convention on Tobacco Control (FCTC), according to new briefing paper published by the Global State of Tobacco Harm Reduction (GSTHR).

    Scheduled for Nov. 20-23 in Panama City, COP10 will have a significant influence how tobacco policies are implemented at a national level, which in turn will determine the future of safer nicotine products such as e-cigarettes, heat-not-burn products and nicotine pouches.

    To determine the potential impact of the conference on tobacco harm reduction, the GSTHR analyzed the COP10 agenda and supporting documents.

    The GSTHR’s analysis indicates that at present, tobacco harm reduction and its potential to reduce smoking-related death and disease are entirely missing from the proceedings. The publicly available documentation ahead of the FCTC COP10 presents safer nicotine products as a threat to tobacco control rather than as potential tools to support a switch from smoking and reduce high-risk tobacco use.

    Parties to the FCTC are expected to be encouraged to classify and regulate nicotine vapes, snus, nicotine pouches and heated tobacco products in the same way as tobacco and combustible tobacco. This risks removing or reducing access to safer options from people who already use them and may return to smoking—and from people who smoke and have the potential to switch and improve their health, according to the GSTHR, which is a project of Knowledge Action Change (KAC).

    The WHO and FCTC Secretariat’s refusal to engage with evidence from multiple countries that have witnessed accelerated declines in smoking rates is unscientific and unjustifiable.

    “Having observed the WHO’s activities on this issue for some time, many are unsurprised that the FCTC COP10 meeting papers reveal a concerning direction of travel,” said KAC Director Gerry Stimson in a statement.

    “The WHO and FCTC Secretariat’s refusal to engage with evidence from multiple countries that have witnessed accelerated declines in smoking rates is unscientific and unjustifiable. Their repeated characterization of safer nicotine products as a threat to tobacco control runs directly counter to what should be the overarching goals of the Convention–to reduce smoking-related deaths and disease as rapidly and effectively as possible.

    “People who use safer nicotine products are barred and have no voice at the FCTC COP10. Those Parties who have successfully adopted and supported access to these products as effective tools for smoking cessation must ensure that their own progress is not hindered by COP decisions—and that the potential for tobacco harm reduction is given due consideration by all Parties present in Panama next month.”

  • Zimbabwe Tobacco Export Earnings Up

    Zimbabwe Tobacco Export Earnings Up

    Image: Tobacco Reporter archive

    Zimbabwe has recorded a 26 percent increase in export earnings from tobacco products, according to The Herald.

    Export earnings were USD603 million in the January 2023 to August 2023 period, up from USD477 million in the same 2022 period, following the operationalization of the Tobacco Value Chain Transformation Plan (TVCT).

    Zimbabwe exports partly or whole stemmed/stripped tobacco or not stemmed/stripped tobacco, tobacco refuse, cigars, cheroots and cigarillos containing tobacco, cigarettes and manufactured tobacco.

    Volume increased 13 percent, and the average price increased 12 percent.

    Of the exported product, 71 percent was partly or wholly stemmed/stripped tobacco, and 19 percent was tobacco refuse, the same trend from 2022.

    “There has been a significant increase in shipments to the Far East as shipping constraints have eased,” said Rodney Ambrose, CEO of the Zimbabwe Tobacco Association. “Also, a higher value crop has been exported to select destinations. Unfortunately, the same growth cannot be said of growers’ earnings. The future of the tobacco sector remains positive, provided we can address issues around growers’ viability and sustainability.”

    “Credit must be given to farmers who continue to grow the crop even if they are breaking even or making a loss with the hope that one day, they will make a profit,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association. “Contractors also should be thanked for rendering support to farmers. However, the Tobacco Industry and Marketing Board (TIMB) must work on reducing or eliminating the participation and licensing of surrogates (middlemen) who are putting huge markups on their services to the detriment of farmers.”

    Farmer profitability can only be enhanced if all stakeholders work to reduce production cost with the TIMB enforcing contract pricing and monitoring the delivery of adequate inputs to farmers on time, according to Seremwe.

    The government and tobacco stakeholders came up with the TVCT with the aim of creating a USD5 billion industry by 2023.

    Export of tobacco products has been on an upward trend, with earnings of USD795 million in 2020, USD837 million in 2021 and USD998 million last year. By the end of this year, earnings are expected to exceed USD1 billion.

  • Pacific Cigarette Co. in Voluntary Business Rescue

    Pacific Cigarette Co. in Voluntary Business Rescue

    Image: iridescentstreet

    The Pacific Cigarette Company (PCC) was granted a request to be placed under voluntary business rescue following an assessment by revenue authorities that alleged tax violations and outstanding obligations, leaving the company facing liability in the amounts of USD19.3 million and USD79.8 billion, reports The Herald.

    The tax liability also put the company in an insolvent position, according to the PCC, formerly Savanna Tobacco Company.

    The PCC connects the financial issues to foreign currency challenges faced by Zimbabwe in 2005, when the PCC entered a partnership with the Reserve Bank of Zimbabwe (RBZ) and piloted toll manufacturing to survive the introduction of 50 percent foreign currency surrender requirements on exports.

    “Through toll manufacturing, PCC and other businesses were able to source raw materials from their customers, ensuring their sustainability, while complying with the RBZ’s 50 percent foreign currency surrender requirements,” the company said.

    “Then the Reserve Bank governor promoted toll manufacturing as a durable business model for companies facing similar foreign currency challenges.

    “Since then, the toll manufacturing model has been our accepted raw material funding model, removing the need for PCC to finance the working capital for export raw materials.

    “In June this year, without any notice, Zimra performed a spectacular U-turn that has undermined the stability of the business and deemed the raw materials funded by our customers as income, subject to VAT,” according to the PCC.

    “They also levied an arbitrary markup and interest penalties on PCC for the tax assessment period 2018 to 2020, to which we have objected.

    “The issued tax assessments against the company impose tax liabilities amounting to USD19.3 million and USD79.8 billion.” The PCC alleges that Zimra garnished all its bank accounts. “Next, Zimra took the unprecedented step of instructing our customers to pay Zimra any monies owed to PCC, effectively closing off all the company’s income streams.

    “In an effort to get the garnish lifted, PCC submitted a payment plan proposal while awaiting the determination of the objection, which payment plan was rejected by the tax authority,” said the PCC.

    “Zimra’s unprecedented actions on false tax violations have regrettably placed PCC in an insolvent position, forcing the company’s directors to place the business under voluntary business rescue to safeguard the interests of all creditors and stakeholders whilst the company continues to try and amicably resolve the matter with the tax authority.

    “PCC applied to be placed under voluntary business rescue on Oct. 2, 2023, and the Master of the High Court Oct. 4, 2023, appointed Mr. Reuben Mukavhi of Rubaya-Chinuwo Law Chambers Legal Practitioners as the corporate business rescue practitioner,” according to the company.

    “The Zimbabwe Revenue Authority is not in a position to comment in the public domain on the tax affairs of an individual taxpayer as the law through the preservation of secrecy protects clients’ right to confidentiality,” Zimra said.

    The PCC is Africa’s second-largest indigenous tobacco company and Zimbabwe’s first locally owned cigarette company.

  • Oman to Implement Plain Packaging

    Oman to Implement Plain Packaging

    Image: mbruxelle

    Oman’s Ministry of Commerce, Industry and Investment Promotion (MoCIIP) announced that the mandatory standard for plain packaging of tobacco products will be effective April 2024, according to the Daily Muscat.

    “The ministry requests tobacco companies and local compliance firms to follow Ministerial Decision No. 2023/67, which requires implementing Omani Standard OS1655 for plain packaging of tobacco products. This becomes mandatory from April 4, 2024,” the MoCIIP said in a statement.

    The ministry issued a decision on the standard in March 2023 and deemed it a binding Omani standard specification.

    The standard requires that at least 65 percent of the packaging include a public health warning, picture and a message to quit while the rest of the packaging displays the brand name in a standardized font and color.

  • Korea to Require Ingredient Disclosure

    Korea to Require Ingredient Disclosure

    Image: luchschenF

    South Korea’s National Assembly approved the Law on the Control of Harmful Effects of Tobacco during its full session on Oct. 6, according to The Korea Bizwire. The law mandates the disclosure of the types and amounts of harmful ingredients used in cigarettes.

    The law will take effect two years after it is officially announced. It is expected to be put into practice by October 2025.

    Following implementation of the law, cigarette makers, importers and distributors will have to regularly test harmful ingredients in their products every two years and disclose the results and information on ingredients in the cigarettes with the Ministry of Food and Drug Safety.

    Data about the dangerous ingredients will be made available to the public online. The Tobacco Harmfulness Control Committee will decide which specific harmful components will be disclosed.

    E-cigarettes, including liquid and cigarette varieties, are also included in the law.

    Previously, South Korea disclosed tar and nicotine levels in cigarettes but did not examine or reveal content of carcinogenic substances, including naphthylamine, nickel, benzene, vinyl chloride, arsenic and cadmium.

  • Kenya Wants to Ban BAT Nicotine Pouches

    Kenya Wants to Ban BAT Nicotine Pouches

    Image: Tobacco Reporter archive

    Kenyan legislators are urging the government to ban the sale of BAT’s nicotine pouches Velo and Lyft, reports 2Firsts.

    Health Minister Susan Nakhumicha was questioned about the products during a parliamentary address.

    The Kenyan Tobacco Control Act (KTCA) states that all packaging of nicotine pouches and tobacco products must contain warnings in English and Kiswahili. Sabina Chege, Member of Parliament, showed two boxes of Velo nicotine pouches, which only displayed a reminder that Velo contains nicotine, which can be addictive. The argument by experts is that nicotine also poses serious health risks.

    Allowing import and sale of the pouches could jeopardize the well-being of Kenyan youth, according to Chege. In response, Nakhumicha suggested the formation of a technical team to investigate the KTCA and make recommendations.

  • New Habanos Vitola for Duty-Free Shops

    New Habanos Vitola for Duty-Free Shops

    Habanos S.A., the state-run distribution arm of Cuban cigars, announced a new size of the Hoyo de Monterrey called the Destinos.

    The new vitola will be exclusive to duty-free shops at travel ports around the world, excluding the United States.

    The Destinos measures 5 and  7/10 (145mm) x 49 and was unveiled during the TFWA World Exhibition & Conference in Cannes, France. This is an event for duty-free retailers.

    “The Hoyo de Monterrey Destinos travel humidor is a perfect choice for Habanos-loving travelers who enjoy thick-gauge vitolas and appreciate the light strength that is a hallmark of the Hoyo de Monterrey brand,” a Habnaos representative told Tobacco Reporter. “This is a great opportunity to enjoy all the aromas and flavors of Hoyo de Monterrey’s blend anywhere in the world.”

    Within the general Cuban naming system, this will be known as the sutiles and is reportedly the first Cuban cigar made in this size.

    It will be available in “travel humidors” in counts of 20 sticks. There was no timeline for release or pricing given.

  • Serbia Raises Excise on Tobacco

    Serbia Raises Excise on Tobacco

    Image: Henning Marquardt

    Serbia has raised excise taxes on cigarettes, fuel, alcohol and coffee by 8 percent, effective Oct. 1, reports Euractiv.

    According to Bojan Stanic, deputy director of the Strategic Analysis Department at the Serbian Chamber of Commerce, the increase does not mean the products will become 8 percent more expensive; it comes down to the price structure.

    “Excise taxes are increasing by 8 percent,” said Stanic. “When you look at the price structure of fuel, one part relates to the purchase price of fuel, and then excise tax is added, and this part of the excise tax is increased by 8 percent. This does not necessarily mean fuel at the pumps will become much more expensive.”

    “The budget of Serbia is constrained, and it is under pressure due to rising interest rates for repaying the state’s debt,” said Stanic regarding the decision. “On the other hand, there is pressure that mostly affects the poor, and of course, it is necessary to provide increases in pensions and one-time transfers to the population in terms of assistance. All of this is applied to relieve the poorest part of the population. Additionally, it was necessary to find additional revenues. Someone calculated that increasing excise taxes was the way to go.”

    “However, when we talk about other products like coffee, alcohol, and tobacco, which are also subject to excise taxes, these are not essential goods; people can live without them. Therefore, it is believed that there will be less resistance if taxes on these products are increased,” he added.