Category: Featured

  • FDA Seeks Nominations for TPSAC

    FDA Seeks Nominations for TPSAC

    Image: freshidea

    The U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) is requesting nominations by Oct. 11, 2023, for a nonvoting representative of the interests of the tobacco manufacturing industry to serve on the Tobacco Products Scientific Advisory Committee (TPSAC). Individuals may self-nominate or be nominated by any interested person or organization.

    In addition, the CTP is seeking any industry organizations interested in participating in the selection of this TPSAC nonvoting representative.

    Nomination materials for prospective TPSAC candidates and letters from industry organizations interested in participating in the selection process should be sent to the CTP by Oct. 11, 2023. Please see the Federal Register notice for further details on the nomination and selection procedures.

    TPSAC advises the CTP in its responsibilities related to the regulation of tobacco products. The committee reviews and evaluates safety, dependence and health issues concerning tobacco products and provides appropriate advice, information and recommendations to the FDA commissioner.

  • Victoria Harker Joins PMI Board

    Victoria Harker Joins PMI Board

    Image: Syda Productions

    Philip Morris International appointed a new member, Victoria Harker, to serve on the board of directors, effective Jan. 1, 2024.

    Harker is an experienced U.S. public-company chief financial officer, having served in the role with three different companies, and she has been involved in significant corporate transformations in the consumer, industrial and utility sectors for over 25 years. She is a high-energy, action-oriented, strategic executive who has worked at a significant scale, most recently as executive vice president and chief financial officer of TEGNA Inc., a global media and digital communications company, a position she will step down from effective Dec. 31, 2023. Prior to this, she served as executive vice president, chief financial officer and president of global business services of The AES Corporation, a global power company. She has served as a nonexecutive member of the boards of directors of two large and complex U.S. public companies, Huntington Ingalls Industries and Xylem Inc., since the time of their respective spinoffs. Harker also serves as the audit committee chair for Huntington Ingalls Industries and as the compensation committee chair for Xylem Inc. She is vice chair of the State Council of Higher Education for Virginia, a member of the University of Virginia Health System board and was previously a member of the University of Virginia board of visitors.

    Andre Calantzopoulos, PMI’s executive chairman, commended Harker on the appointment, and said in a statement, “We are delighted to welcome Victoria to the PMI board of directors. Her broad finance and business experience will further strengthen and diversify the capabilities of our board in successfully guiding our company through its ambitious and highly promising journey toward a smoke-free future and beyond.”

  • KT&G Wins Admin and Security Award

    KT&G Wins Admin and Security Award

    Image: KT&G

    KT&G received the Minister of Public Administration and Security Award at the 12th Korea Knowledge Awards organized by the Ministry of Public Administration and Security.

    The Korea Knowledge Award is the nation’s highest accolade in the field of knowledge, awarded to government and public institutions and private enterprises that have shown outstanding results in knowledge administration and management, leading to government innovation and enhanced corporate competitiveness. KT&G was recognized for its systematic knowledge management accomplishments, including establishing a dedicated intellectual property division and developing intellectual property processes, distinguishing itself as the sole private enterprise recipient of the award.

    KT&G has concentrated on strengthening its proprietary technology development capabilities to swiftly respond to an ever-changing market. The company has been operating a dedicated organization for intellectual property, constructing a unique intellectual property computer system for effective management and promoting in-house research and development as well as technological innovation by uncovering and nurturing employees’ innovative business ideas through initiatives like Patent Week, leading to patent applications.

    KT&G’s consistent drive in knowledge management led to a significant increase in intellectual property creation, resulting in domestic patent applications surging from 82 in 2017 to 444 in 2022—a more than 440 percent increase. Domestic and overseas applications also saw a monumental rise, starting from 27 in 2017 to 1,065 in 2022—an increase of over 3,800 percent. Currently, the total registered trademarks stand at 7,132.

    Owing to these achievements in intellectual property creation, KT&G was honored with the Prime Minister’s Award at the 56th Invention Day event hosted by the Korean Intellectual Property Office in 2021, recognizing its contribution to protecting national industrial technology and advancing the intellectual property system. Moreover, in the 2021 South Korean Corporate European Patent Index released by the European Patent Office, the company ranked third, following Samsung and LG. This year, KT&G was also chosen as one of the Top 100 Global Innovative Momentum Companies by LexisNexis, a global intellectual property solution company.

    Cho Seong-moon, the head of KT&G’s R&D division, stated, “Based on our technological competitiveness and rapid adaptability to the ever-changing market, KT&G will continue to grow into a global ‘top-tier’ enterprise through the continuous enhancement of knowledge management.”

  • Industry Leaders Call for Regulatory Restraint

    Industry Leaders Call for Regulatory Restraint

    Photo: WavebreakMediaMicro

    Representatives of the nicotine industry called on regulators to develop policies that respect adult consumers, strengthen the protection of minors in a targeted manner and take into account the concerns of the companies and employees of a diverse industry.

    Speaking during the opening day of the InterTabac trade exhibition in Dortmund, industry leaders cited mounting regulations in Germany, where manufacturers, retailers and consumers have had to adjust to multitude new restrictions in short succession.

    Meanwhile, the EU Commission is preparing amendments to the EU Tobacco Tax Directive and the EU Tobacco Products Directive, which threaten to tighten the rules even further. In Berlin, politicians are calling for additional advertising bans and a ban on flavors in e-cigarettes.

    Managing Director Michael von Foerster of the German Smoking Tobacco Association urged lawmakers to return to the model of the responsible consumer.

    “An informed adult who rolls a cigarette, enjoys a cigar, smokes a pipe or consumes snuff has the right to do so without government paternalism through new harassment and restraints,” he said. “Instead of continuing to turn the regulatory screw, greater trust in informed consumer decisions is urgently needed—not only in the tobacco sector.”

    The calls for new advertising restrictions in Germany are driven in part by a recent DEBRA study that revealed an increase in smoking. However, according to Jan Muecke, managing director of the German Association of the Tobacco Industry (BVTE), the results of this study are contradicted by the significant decline (8 percent) in cigarette sales in 2022. Cigarette sales in Germany fell to 65.8 billion units in 2022, according to the BVTE—a historical low.

    “Far reaching political decisions cannot be discussed on the basis of a survey which, given the small sample size, has no validity and does not stand up to scrutiny,” said Muecke. “We support a targeted strengthening of the protection of minors, for example through more intensive control of the ban on the sale of these products to minors. Arbitrary bans, on the other hand, would not add any value to the protection of minors and would ultimately be counterproductive. Banning flavors in e-cigarettes does not keep young people away from nicotine, but only prevents adult smokers from switching to these low-emission alternative products.”

    Bodo Mehrlein, managing director of the Federal Association of the Cigarette Industry, demanded an end to what he described as the strangulation of the tobacco business in Germany, pointing to the sector’s economic contributions at a time of hardship. The tobacco industry, which directly and indirectly employs some 350,000 people in Germany, is already drowning in regulations and requirements, he said. For example, it is currently facing the challenge of installing a costly traceability system to monitor the supply chain.

    Torsten Loeffler, president of the Federal Association of Tobacco Retailers, said the mounting regulatory burdens threaten the viability of many retailers, who are already struggling with skyrocketing cost and low profits.

    “Those who demand a ban on tobacco advertising in shops want a ban on communication for legal products, prevent competition as well as diversity, and thus endanger the existence of businesses and the jobs of employees,” he said.

     

  • FDA: Premium Cigars Exempt from User Fees

    FDA: Premium Cigars Exempt from User Fees

    Image: J A Nicoli

    The U.S. Food and Drug Administration will not assess user fees for premium cigars in the fourth quarter of fiscal year 2024, the agency told manufacturers and distributors, according to Halfwheel.

    The statement follows last month’s outcome of Cigar Association of America et al. v. United States Food and Drug Administration et al., which led to deeming regulations not being applied to cigars that meet the definition of “premium cigar.”

    User fees help fund the Center for Tobacco Products. The amount of user fees is set by Congress; companies that import or manufacture cigarettes, roll-your-own products, snuff, chewing tobacco, cigars or pipe tobacco are assessed fees, and individual shares are calculated based on excise taxes paid on each product compared to the total amount of excise taxes paid by all products.

    The FDA, however, does not know whether a cigar company is selling premium cigars, nonpremium cigars or a mixture of both. Due to this, the FDA is asking companies to submit dispute letters within 45 days of the assessment of user fees. The agency is allowing companies the option of either paying the full amount of user fees with the intent of getting refunded for user fees assessed to premium cigars or paying what the company believes it will owe for nonpremium cigars.

    The FDA has stated that it will introduce a better process going forward, but it has not released information regarding what that will look like.

    There was no mention as to whether the FDA plans to refund user fees paid for premium cigars from August 2016 to the second quarter of fiscal year 2023.

  • FDA Sends More Warning Letters

    FDA Sends More Warning Letters

    Image: theerakit

    On Sept. 14, 2023, the U.S. Food and Drug Administration issued warning letters to 15 online retailers and three manufacturers and/or distributors for selling or distributing unauthorized e-cigarette products. Additionally, in one case, the retailer illegally sold a product to an underage purchaser. The warning letters cite a range of popular and youth-appealing e-cigarette products, including disposable products, marketed under the brand names Elf Bar, EB Design, Lava, Cali, Bang and Kangertech. 

    According to the FDA, the youth-appealing e-cigarette products of focus were identified through rapid surveillance and a data-driven approach to investigations. Retail sales data, emerging internal data from surveys of youth, as well as other data sources helped the agency to identify the rising popularity of these youth-appealing products, which were subsequently prioritized for investigation across the supply chain, from manufacturers to distributors to retailers.

    “Given the rapidly evolving nature of the e-cigarette landscape, it’s essential that we have nimble surveillance tools that can best keep pace to protect public health,” said Brian King, director of the FDA’s Center for Tobacco Products. “They’re a critical component of our comprehensive surveillance toolbox, so that we can proactively identify and swiftly stave off emerging threats, particularly those affecting our nation’s youth.”

  • Indonesia: Tax Collections Fall Short

    Indonesia: Tax Collections Fall Short

    Photo: Taco Tuinstra

    Indonesia had collected only half of the targeted tobacco taxes by the end of August, reports Tempo, citing the country’s Directorate General of Customs and Excise.

    According to the directorate’s director of communication, Nirwala Dwi Heryanto, the state’s income from tobacco excise reached only IDR126.8 trillion ($14.76 billion) by the end of last month—far short of the IDR232.5 billion anticipated in the 2023 state budget.

    Based on the collections to date, Heryanto expected Indonesia’s tobacco tax collections to reach 93.98 percent of its target by the end of 2023.

    Heryanto attributed the shortfall to downtrading, a shift from combustible cigarettes to vapor products and illegal distribution of cigarettes.

    To reach its target, Customs and Excise is stepping up enforcement and improving its technology and information service, Heryanto said.  

  • Pyxus Reorganizes

    Pyxus Reorganizes

    Photo: Pyxus

    Pyxus International has announced a new, streamlined organizational structure designed to increase operational efficiencies, drive organizational effectiveness and create stakeholder value. 

    The company will split the role and responsibilities of the Alliance One president, creating two new leadership positions—executive vice president, chief operating officer (COO) and executive vice president, business strategy & sales.

    In addition, it will redesign of the company’s current business services function and rebrand the company’s current communications, sustainability and external affairs function, positioning it as a standalone corporate affairs department

    Alliance One’s president, Alex Strohschoen, has departed the company to pursue new opportunities. Additionally, the organizational structure changes align with Herbert Weatherford, Alliance One senior vice president, business relationship manager’s intent to retire in March 2024 after 34 years of service.    

    “In line with one of Pyxus’ key themes for fiscal year 2024—simplification—our updated organizational structure connects our core business functions with our strategic priorities to drive accountability and operational results while reducing unnecessary or burdensome complexities,” said Pyxus President and CEO Pieter Sikkel. “We have assembled a strong, diverse leadership team and I am confident this new structure further positions Pyxus as a future-facing, agile business as we continue prioritization of growth and long-term success.”

    In line with one of Pyxus’ key themes for fiscal year 2024—simplification—our updated organizational structure connects our core business functions with our strategic priorities to drive accountability and operational results while reducing unnecessary or burdensome complexities.

    Pyxus has appointed Scott Burmeister to the newly created position of executive vice president, COO. Burmeister has served the company in several capacities since joining in 1996, most recently leading the business’ Europe, Middle East and Africa region. As COO, he will focus on the company’s global operations, quality and output, with oversight of the business’ regional director positions, and the global agronomy department and value-added agricultural products division.

    Dustin Styons has been named Pyxus’ executive vice president, business strategy and sales, responsible for business-to-business strategy, business relationship management, business development and the company’s e-liquids division. Styons joined the company in 2005, most recently serving as vice president, corporate finance and business development.  

    Tracy Purvis, who has led the Pyxus’ global business services function since 2018, has been tasked with its redesign under the new title of executive vice president, global business & information services. Purvis, who joined the company in 1990, will leverage Pyxus’ IT assets to drive cost competitiveness, efficiencies and effectiveness with a focus on process automation and simplification, data analytics, validation and visualization, and productivity collaboration.

    To align with the business’ strategic focus area of environmental, social and governance (ESG), as well as the growing importance of addressing all stakeholders equally to mitigate risk, enhance brand value and ensure consistent, transparent messaging, Miranda Kinney has been promoted to senior vice president, global communications & sustainability. She will lead the company’s newly formed global corporate affairs department and will remain responsible for internal and external communications, crisis management, sustainability and ESG, and external and government affairs. 

    All four positions will report to Pyxus’ president and CEO.  

  • New Global Vape Alliance Announced

    New Global Vape Alliance Announced

    Photo IEVA

    A new Global Vape Alliance has been announced at the InterTabac Trade Fair in Dortmund, Germany, alongside a declaration to foster collaboration, promote responsible practices and champion the cause of harm reduction in the vaping industry.

    The Global Vape Alliance brings together major international vaping bodies including the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce (ECCC), the U.S. Vapor Technology Association (VTA), the U.K. Vaping Industry Association (UKVIA) and the Independent European Vape Alliance (IEVA).

    The declaration aims to underscore the power of unity within the vaping industry. By coming together under its umbrella, industry leaders will commit to effecting responsible and positive change on a global scale, thereby signifying a new era in the industry’s dedication to public health, environmental sustainability and the well-being of smokers seeking alternatives to traditional tobacco products.

    Key highlights of the Global Vape Alliance declaration include:

    • Regulatory Compliance: The alliance will facilitate the sharing of best practices to ensure member companies adhere to existing laws, regulations and industry standards, with a strong focus on responsible marketing and protecting youth.
    • Industry Promotion: The alliance aims to elevate the vaping industry’s professionalism, importance and sustainability by fostering communication among industry stakeholders and encouraging technological innovation.
    • Public Health: Emphasizing harm reduction, the alliance will actively promote the adoption of vaping products among conventional smokers to reduce harm, while openly providing information about their impact on physical health.
    • Environment Protection: In pursuit of a greener future, the alliance will advocate for eco-friendly strategies, promote recycling, low-carbon design and urge compliance with environmental laws.

    Our goal is clear—to make a significant impact on public health, support those looking to quit smoking and contribute to a sustainable, environmentally friendly future.

    The Global Vape Alliance firmly believes that unity and cooperation within the vaping industry can lead to a world without smoking.

    “Our goal is clear—to make a significant impact on public health, support those looking to quit smoking and contribute to a sustainable, environmentally friendly future. With this declaration, we are combining the international forces of the industry to achieve important goals for the benefit of consumers,” said Dustin Dahlmann, president of the IEVA.

    “The signing of the declaration, as I believe, will guide the global vaping industry to the future of healthy development and prosperity. In this regard, ECCC will continue to deepen the cooperation with other partners,” said ECCC Secretary-General Will Ao.

    “The vaping sector is entering a critical chapter in its history with increased scrutiny from policy makers, regulators, public health officials, academics and campaigners,” said John Dunne, director general of the UKVIA. “It has to stand up and be counted, show strong leadership and the greatest levels of responsibility. The launch of the Global Vape Alliance and the declaration sets out to show the world that we are committed to best standards, practices and above all making smoking history.”

    “Despite the enormous body of science that has declared vaping nicotine dramatically safer than smoking, the vapor industry’s detractors around the globe push a dramatically misinformed narrative,” said Tony Abboud, executive director of the VTA. “Declaring a shared commitment to furthering sound science, truthful information, and a commitment to meaningful regulations, industry leaders around the world can better serve companies and, more importantly, millions of consumers using vaping products to reduce and/or quit smoking cigarettes.”

    For more information about the Global Vape Alliance declaration, please visit the Global Vaping Alliance website.

  • BAT Completes Sale of Russia Business

    BAT Completes Sale of Russia Business

    Photo: Matvey Salivanchuk

    BAT has completed the sale of its Russian and Belarusian businesses, the company announced its website. According to the multinational, the sale has been carried out in compliance with local and international laws and follows the receipt of all necessary approvals.

    “BAT Group announced conclusion of an agreement on sale of business in Russia and Belarus today. All trademarks being used now will remain in the ownership of the Russian business. Consequently, consumers will continue receiving high-quality products they are used to under familiar brands,” the press service of the company’s Russian office said.

    “Throughout the transfer process, same as after it, among the new owner’s key priorities are uninterrupted business processes, ensured employment of the staff and the implementation of the investment plan approved by the governmental subcommittee,” the company noted.