Category: Featured

Coalition Campaigns Against Menthol Ban

Image: National Coalition of Justice Practitioners
The National Coalition of Justice Practitioners, a group of Black and Hispanic law enforcement executives and experts, hosted the “When Good People Write Bad Policy” National Press Club panel event to educate people about the racial and criminal implications of a menthol ban, according to a PR Newswire release. The panel met before the U.S. Food and Drug Administration’s anticipated menthol ban announcement.
“There are many groups who still do not understand the unintended consequences of this proposed ban,” said Benjamin Chavis, president and CEO of the National Newspaper Publishers Association and panel moderator. “For leaders in Washington to consider this ban without consulting Black and Brown officers is disastrous. Let’s sit down with the proponents and first conduct a Racial Impact Study. Targeting in the past doesn’t justify targeting now. We are against racial targeting and profiling. All of it.”
Panelists Jiles Ship, Neill Franklin, Elliot Boyce, Corey Pegues, Sonia Pruitt, David Daniels III, John I. Dixon and Ron Hampton asked that President Joe Biden and Vice President Kamala Harris pull back on this menthol ban until further studies, like a Racial Impact Study, are done and more experts are heard.
The Aug. 10 panel event urged lawmakers to study the effects of a menthol ban by launching a Racial Impact Study that gathers input from law enforcement, health experts and Black and Latino communities.
The law enforcement experts listed these unintended consequences: Anything you ban becomes illegal, and it is a policing issue; enforcement of the menthol ban will be in more urban and Latino communities and used as a tool in racial profiling, stop-and-frisks and arrests; and the police do not need another reason for a stop-and-frisk that leads to life-threatening casualties in the Black community.
Former Law Enforcement Action Partnership Executive Director Franklin stated, “Illicit markets breed violence. This menthol ban will flood the streets, especially Black and Latino communities, with unregulated products, and if you think the products are unhealthy now, wait until the unregulated products are pushed into our communities. You don’t want to see substances like fentanyl added to a street cigarette.”
Overall, adult and youth smoking rates in the U.S. are at record lows, according to the coalition. Since over 80 percent of African Americans and 48 percent of Latinos who choose to smoke prefer menthol cigarettes, a proposed FDA ban is racially discriminatory since cigarettes preferred by white smokers will not be banned, they argue. There is no scientific basis to regulate menthol and nonmenthol cigarettes differently. Health concerns are more effectively managed through education, treatment and counseling, not by police, they state.
August 30, 2023
‘FDA Botched Review’

Image: Tobacco Reporter archive
The U.S. Food and Drug Administration failed to conduct a proper analysis before rejecting premarket tobacco product applications (PMTAs) submitted by Fontem U.S. for certain vaping products, the U.S. Court of Appeals for the D.C. Circuit found on Aug. 29.
The court upheld the regulatory agency’s denial of Fontem’s application to market flavored vaping products but rejected the FDA’s denial of Fontem’s application for unflavored products.
“While the FDA identified multiple ‘deficiencies’ [in Fontem’s application], it failed to analyze the trade-offs necessary to make a public health finding,” the judges wrote in their ruling. “Nor did the agency explain how the specific deficiencies relate to its overall conclusion that Fontem failed to demonstrate its unflavored products were appropriate for the protection of public health. The agency’s denial therefore failed to comport with the requirements of the Tobacco Control Act.”
The FDA’s failure to correctly apply the public health inquiry to Fontem’s unflavored products led it to make another serious error, according to the court. In its initial deficiency letter, the FDA requested certain information from Fontem, thereby indicating such information would be sufficient for the agency to approve Fontem’s products.
But in its denial order, the agency changed its tune, reproaching Fontem for failing to provide information that the agency had never explicitly sought.
“Shifting the regulatory goal posts without explanation is arbitrary and capricious,” the judges wrote. “By indicating in its deficiency letter that Fontem could resolve issues with its applications by providing specific information, the FDA represented such information would be sufficient to secure approval.”
August 30, 2023
Russia Blames Illicit Trade for Tax Losses

Photo: Ivan Semenovych
The Russian government lost more than RUB46 billion ($481.33 million) in tax earnings in the first half of 2023 as a result of the illicit trade in cigarettes, reports Interfax.
“According to the latest study, which ended this month, the share of illicit cigarette trafficking was 13.3 percent in terms of smokers,” said Vladislav Zaslavsky, director of the Russian Industry and Trade Ministry’s department for the system of digital marking of goods and the legalization of the circulation of products.
“The minimum amount of losses, according to the NNCC [National Scientific Center for Combating Illicit Trafficking in Industrial Products], is estimated at RUB46.5 billion,” Zaslavsky said on Aug. 24 during a retail round table in the Volga region.
According to Zaslavsky, each percent of the share of illicit cigarette trafficking costs the federal budget about RUB7 billion in excise taxes alone.
The NNCC will conduct a study on “nicotine-containing products” in the second half of 2023. As of the end of 2022, the market share of illegal nicotine-containing products was 79 percent, including 93 percent in illegally sold nicotine-containing liquids.
August 29, 2023
Sampoerna Announces Executive Changes

Photo: Taco Tuinstra
Sampoerna has appointed Johan Bink as the operations director, succeeding Dina Lombardi, and Gunnar Beckers as marketing director, succeeding Francisca Rahardja.
Previously, Bink served as director of manufacturing at Papastratos, an affiliate of Philip Morris International in Athens, with over 33 years of experience in supply chain management and production planning.
Beckers previously served as PMI global head of consumer experience in Lausanne, Switzerland, with over 20 years of experience in marketing.
“Johan’s extensive experience in operations, from production floor to central functions, and his strong communication and leadership skills will continue to be great assets in his new role,” said Sampoerna President Director Vassilis Gkatzelis in a statement.
“Meanwhile, Gunnar is a well-rounded executive, who has consistently created value across diverse assignments at global, regional and market levels. His strategic perspective, wide international experience, strong collaborative spirit, focus on consumers, and ability to build brands will be great assets in his new role.”
Gkatzelis also expressed his gratitude to Lombardi and Rahardja for their contributions and leadership at Sampoerna. Both will assume new responsibilities within the PMI organization.
“Ibu Dina has always prioritized the safety and development of our people, thus role-modeling the Sampoerna and PMI values during the very challenging pandemic period. She guided Operations in reaching monumental milestones, including the establishment of the manufacturing facility for innovative smoke-free tobacco products,” said Gkatzelis.
“Meanwhile, Ibu Francisca has been leading the Marketing organization through very challenging times in a forward-looking way. In addition, she built solid foundations for the Consumer-Centric Organization. At the same time, she also contributed to the early journey of the innovative smoke-free tobacco products that Sampoerna introduced to adult consumers in Indonesia,” said Gkatzelis.
August 29, 2023
Volatile Environment Weakens STG Quarter

Niels Frederiksen | Photo: STG
Scandinavian Tobacco Group (STG) posted net sales of DKK2.2 billion ($320.09 million) in the second quarter of 2023, down 2.3 percent from the comparable 2022 quarter. Its EBITDA margin was 23.1 percent, and free cash flow before acquisitions amounted to DKK159 million.
The group reports that it lowered its full-year guidance to net sales between DKK8.7 billion and DKK9 billion following a more volatile than expected trading environment. According to STG, the adjustment reflects ongoing inventory adjustments among customers and distributors, slower regain of market shares in Europe, delays in new store openings in the U.S. and changes in exchange rates.
“On the back of a volatile environment, we had to adjust our guidance even though we are continuing to make good progress on our ambition to grow the size of the company through retail expansion, acquisitions and portfolio diversification,” said STG CEO Niels Frederiksen in a statement.
“In the second quarter, we completed the second acquisition of the year and opened another Cigars International retail superstore. For the remainder of the year, we are focusing on leveraging the current strength of our online business and on building a stronger momentum in our Europe branded business.”
The company expects some recovery in net sales growth for the second half of the year as well as slightly higher free cash flow before acquisitions than in the second half of 2022.
August 29, 2023
Governments Urged to Raise Smoking Age

Photo: Elena Shvoeva
Researchers are urging governments to raise the legal smoking age to 22 after a study found that those who start smoking before the age of 20 find it more difficult to quit.
The scientists analyzed the associations between nicotine dependency and successful smoking cessation according to the age participants started smoking. They presented their findings at the European Society of Cariology Congress, which took place Aug. 25–28 in Amsterdam.
The study included 1,382 smokers, of whom 30 percent were women. Early starters reported a higher number of cigarettes per day (25) compared with late starters, who smoked 22 cigarettes per day. Those who started early had higher respiratory carbon monoxide levels compared with those who started late (19 ppm versus 16.5 ppm, respectively) and higher scores on the Fagerstroem test for nicotine dependence (7.4 versus 6.3, respectively).
Less than half of early starters (46 percent) successfully quit smoking compared with 56 percent of late starters, for an odds ratio of 0.711 after adjusting for sex, age at clinic visit and smoking cessation aids—indicating that early starters were 30 percent less likely to successfully kick the habit compared with late starters.
“Our results show that starting smoking early is linked with higher nicotine dependency, even in young adulthood,” said study author Koji Hasegawa of the National Hospital Organization Kyoto Medical Center in Japan in a statement. “The study indicates that increasing the legal age to buy tobacco to 22 years or older could lead to a reduction in the number of people addicted to nicotine and at risk of adverse health consequences.”
August 29, 2023
Kaival Promotes Stephen Sheriff to COO

Photo: akub Jirsák | Dreamstime.com
Kaival Brands Innovations Group has promoted Stephen Sheriff to chief operating officer.
Sheriff succeeds Eric Mosser, who was recently promoted to CEO, and joins Mosser and recently appointed Chief Financial Officer Thomas Metzler as a part of Kaival Brands’ expanded senior management team.
“Promoting Stephen to the role of chief operating officer was a natural and logical next step given his contributions to the success of Kaival Brands to date and his experience helping businesses navigate through rapid periods of growth and change,” said Mosser in a statement. “He has a strong entrepreneurial spirit and will be instrumental in helping us take our business to the next level. With a deep understanding of our operations, the capital markets and what it takes to develop and execute a strategy with proven results, he is a great addition to our C-suite leadership team.”
Sheriff brings more than a decade of finance and entrepreneurial leadership to his new role. Most recently, he served as the director of administration and communications at Kaival Brands. In this role, he managed the company’s investor and public relations and human resource programs in addition to overall responsibility for the development and implementation of key programs and initiatives, including customer and vendor relations.
Prior to Kaival Brands, Sheriff co-founded Riverhill Group, a capital markets advisory and consulting firm.
August 29, 2023
Brazilian Crop Reaches 605.7 Million Kg

Photo: Alliance One Brazil
Tobacco growers in southern Brazil harvested 605.7 million kg of leaf in 2022-2023—8.1 percent more than in the previous growing season, reports Kohltrade, citing figures from the Brazilian Tobacco Growers’ Association Afubra.
The crop included 551.59 million kg of flue-cured Virginia and 46.47 million kg of burley. The area devoted to tobacco production in the region was up 6.1 percent to 261,740 ha.
Growers received an average price of BRL18.12 ($3.72) per kg this year, up 6.5 percent over the average price paid by buyers in 2021-2022.
Observers expect a slight increase in the amount of tobacco planted for the 2023-2024 growing season.
Tobacco transplanting began earlier than normal this year and is already being finalized on most farms in southern Brazil. Adapting to higher temperatures and less rainfall during the growing season, tobacco growers have been gradually bringing transplanting forward in recent years.
Tobacco is a major economic pillar in southern Brazil. There are more than 124,000 tobacco farmers spread across 491 municipalities in the states of Rio Grande do Sul, Santa Catarina and Paraná.
August 28, 2023
Smoking Persists Despite FCTC

Photo: Tobacco Reporter archive
China continues to grapple with significant tobacco consumption, despite adopting the World Health Organization’s Framework Convention on Tobacco Control (FCTC) two decades ago, reports The Straits Times.
In November 2014, the State Council released a draft on national tobacco control guidelines to meet its obligations under the FCTC. However, the draft never progressed beyond the public consultation phase, which was supposed to be completed by the end of that year, according to the Singpore-based newspaper.
As the world’s largest tobacco producer and consumer, China still boasts an estimated 300 million smokers, constituting nearly a third of global smokers. According to The Straits Times, this phenomenon persists due to various factors including social norms, affordability of cigarettes and limited public education.
Despite efforts such as anti-smoking campaigns and banning smoking in government buildings, many individuals continue to smoke, encouraged by the ubiquity of tobacco shops, low-cost cigarettes and deeply rooted cultural practices.
The State Tobacco Monopoly Administration (STMA), which controls the tobacco industry, also acts as a significant employer, providing jobs to over half a million people across the nation.
In much of China, the tobacco industry is considered a prestigious employer, with its stable income, generous salaries and employee benefits. In surveys of fresh graduates, China’s big tobacco firms—largely state-owned enterprises—are consistently rated some of the best companies to work for, with degree holders happy to take on blue-collar jobs on the factory lines.
Manufacturing some 2.4 trillion cigarettes a year, China’s tobacco industry posted a profit of RMB132 billion ($18.3 billion) in profits in 2022, up nearly 12 percent from the year before.
STMA’s operational arm, the China National Tobacco Corp., does not report sales figures but posted a record taxable income of RMB1.44 trillion in 2022. By comparison, the second-highest taxpayer, the Industrial and Commercial Bank of China, reported taxable income of RMB109 billion.
While the anti-smoking lobby has been urging the government to sever the ties between the industry and its regulator, few expect that to happen, citing a lack of political will.
August 28, 2023
Cuban Tobacco Protected from Rain

Image: Tobacco Reporter archive
Cuban tobacco growers have taken measures to protect their harvested tobacco from heavy rainfalls in the wake of a tropical storm in the Caribbean, according to Prensa Latina.
Leaf totaling 18,000 tons has been distributed in warehouses and selected from different territories, and around 1,000 tons remain in farmers’ natural curing houses with proven protection conditions, according to Yoel Hernandez, territorial delegate of agriculture.
Osvaldo Santana, a Tabacuba representative, stated that farmers have the necessary blankets to prevent water from damaging the tobacco leaves.
Due to the impact of rainfall, food for consumption is collected, seedbed irrigation is suspended, and work is done on soil drainage to help minimize damages. Seeds of root vegetables and other vegetables are also preserved to help guarantee future crops, according to Hernandez.
August 28, 2023