Category: Featured

Israel Updates Plan to Tackle Smoking

Image: Vlad
Israel’s health ministry has issued a request for public comments on an “action plan for all tobacco and smoking products,” reports The Jerusalem Post. The plan includes eventually raising the legal smoking age to 21 from 18.
“The phenomenon of smoking is very worrying, and under my leadership, we are determined to promote measures to reduce it and increase awareness of the harm smoking causes,” said Health Minister Moshe Arbel. “This demands a complex and joint effort, and we are committed to implementing the policy in a variety of areas of prevention and encouraging quitting to promote public health and protect youngsters and adults alike from this serious damage to health.”
“Given the dimensions of the spread of smoking, we have examined all possible measures and continue to act in many ways in order to raise awareness of the dangers of using these products,” said Moshe Bar Siman Tov, health ministry director-general. “We recommend adopting a strict policy and dramatic measures required by the necessity of reality, but it’s clear to all of us that the best way to stop smoking is not to start smoking.”
The action plan includes decisions on the prohibition of flavors, giving the ministry powers to enforce the nicotine concentration limit, limiting the volume of the filling liquid allowed for import, marketing and sale, requiring graphic warnings on all tobacco and smoking products and visual uniformity to the smoking and vaping products, a ban on the sale of disposable electronic cigarettes, selling tobacco and smoking products in designated stores only and reducing the number of points of sale, raising the selling age to 21, giving authority to the ministry to enforce a ban on advertising on the internet, equalizing taxation on e-cigarettes and other tobacco products, and applying taxation to nicotine intended for nonmedical use.
The ministry’s statement said that “e-cigs are the gateway to smoking for young people who start experimenting with them at a young age; there is not strong evidence that e-cig use helps smokers kick the habit compared to the proven safety of other means of withdrawal, such as smoking cessation workshops, nicotine gums and patches and medical treatment. The scientific evidence on the health damage of e-cigs in the short[-term] and medium-term is known and described in the literature as affecting the respiratory system, cardiovascular system, trauma and burns, the developing brain in children and the creation of addiction.”
August 21, 2023
Illicit Cigarettes Set to Dominate Pakistan

Photo: Taco Tuinstra
Illicit cigarettes may exceed legitimate tobacco sales in Pakistan within the next quarter, warn some industry insiders, according to Profit. The illicit products have already secured more than 40 percent of the market.
The tobacco industry has criticized the Federal Board of Revenue and the Ministry of Health for their perceived failure to curb the illicit market.
Sami Zaman, head of external affairs at Pakistan Tobacco Co., warned that if left unchecked, illicit cigarette sales could secure more than 50 percent of the market share in months.
Illicit cigarettes offer lower price points and many flavor options but lack proper taxation and legally mandated graphic health warnings.
The industry is having a hard time fighting this due to a supply shortage of legal products; 75 million kg of raw tobacco was secured for the entire cigarette manufacturing industry despite promises of 85 million kg, causing cigarette prices to increase dramatically.
The licit cigarette industry saw a 44 percent decrease in cigarette manufacturing during June 2023 followed by a 28.4 percent decrease from July 2022 to July 2023.
August 21, 2023
Call for Stronger Anti-Smuggling Rules

Image: Tobacco Reporter archive
Law enforcement and health authorities have called for stronger rules against the illicit cigarette trade in Vietnam, according to VN Express.
Most e-cigarettes that are sold in Vietnam are smuggled, according to a leader of the Vietnam Federation of Commerce and Industry. He added that there is not strict legal framework to control e-cigarette products.
“There should be a legal framework to control this product and reduce smuggling,” said Nguyen Hai Cong, head of the Department of Tuberculosis and Lung Diseases at Military Hospital 175. He noted that e-cigarettes are gaining popularity with young people and students, who seem to believe there is no risk to the products.
Many e-cigarette smugglers have been caught recently, according to Kieu Duong, head of policy and legal at Vietnam Directorate of Market Surveillance; 81 smugglers were caught in Hanoi in the first six months of the year with about 20,000 items confiscated. Recently, Hai Phong police confiscated 54,000 illicit products.
According to Duong, the highest penalty for smuggling these products is VND50 million ($2,100), which is not enough to dissuade criminals.
August 21, 2023
Official Accused of Promoting Tobacco

Image: Tobacco Reporter archive
Moses Kuria, Kenya’s trade cabinet secretary, has been accused by tobacco control lobby groups of promoting tobacco use, according to 2Firsts.
Kuria met with BAT representatives regarding the company opening a manufacturing facility in Kenya for tobacco-free oral nicotine pouches.
Lobbyists led by the Kenya Tobacco Control Alliance (KETCA) criticized Kuria for the meeting, accusing him of undermining efforts to control tobacco use. They alleged that the meeting violated regulations regarding interactions between public officers and the tobacco industry. The activists are concerned that Kuria’s support may diminish efforts to curb tobacco use and move farmers away from tobacco growing.
Following the meeting, Kuria expressed support for the tobacco industry on Twitter.
The tobacco industry contributes about 1 percent to Kenya’s GDP.
August 21, 2023
Kaival Amends Philip Morris Deal

Credit: More
Kaival Brands International (KBI) has amended its agreement with Philip Morris Products, a wholly owned affiliate of Philip Morris International, for the development and distribution of electronic nicotine-delivery system products in markets outside of the U.S.
Eric Mosser, CEO of Kaival Brands, the exclusive distributor of all products manufactured by Bidi Vapor, said in a press note that with more than a year of operational history for KBI and given the recent changes to regulations in international markets, it became clear that there were a number of opportunities to improve the terms of the original licensing agreement with PMI and reduce the burden of administering it.
“We are extremely pleased to reach an agreement that shall enable us to achieve our objectives. The revised licensing agreement simplifies the payment structure resulting in cost savings of approximately $2.7 million for the company over the lifetime of the license agreement,” said Mosser. “It also enables better predictability and forecasting for KBI and streamlines data reporting. Finally, we anticipate that the acceleration of royalty payments will be a net positive to our financial performance over the duration of the agreement.”
Under the terms of the amended agreement, the parties agreed to revise certain terms, which provide for, among other things, a fixed pricing structure with volume-driven increases and a recapture of nonrecurring engineering costs by KBI.
Accordingly, Kaival Brands expects a reconciliation payment of approximately $135,000. It projects approximately $300,000 in additional royalties to be earned through the end of 2023.
August 21, 2023
ALD launches Fresor B8000 X1
Photo ALD
ALD has launched the Fresor B8000 X1, disposable vape that offers 8,000-puffs and several customization options.
According to its manufacturer, key features include:
A digital display screen that keeps track of e-liquid and battery levels;
A CMF design that offers elegance and innovation;
A smart dual mesh coil that provides consistent flavor throughout the devices lifespan;
Original equipment manufacturer and original design manufacturer versions are
also available with custom flavors, several nicotine levels (0/1/2/5 percent) and branded packaging.
“The Fresor B8000 X1 promises an elevated vaping experience,” ALD wrote in a press note announcing the launch. “Its digital display, unique design, Fresor MAX technology, and customization options cater to vapers worldwide. Embrace the future confidently, knowing each puff is enhanced by intelligent technology. For experienced vapers seeking innovation or newcomers exploring vaping, the Fresor B8000 X1 offers an indulgent journey of vaping pleasure.”
August 21, 2023
RLX Technology Net Revenue Decreases

Image: Mongkol
RLX Technology announced its unaudited financial results for the second quarter ended June 30, 2023.
Net revenues were RMB378.1 million ($52.1 million) in the second quarter of 2023 compared with RMB2.2 billion in the same period of 2022. The decrease was primarily due to the discontinuation of our older products and the negative impact of illegal products in the market after regulators’ special action ended in April, which disrupted users’ adoption of our new products that comply with national standards.
Gross margin was 26.1 percent in the second quarter of 2023 compared with 43.8 percent in the same period of 2022. The decrease was primarily due to the imposition of a 36 percent excise tax, which came into effect on Nov. 1, 2022.
U.S. GAAP net income was RMB204.7 million in the second quarter of 2023 compared with U.S. GAAP net income of RMB441.6 million in the same period of 2022.
Non-GAAP net income was RMB86.2 million in the second quarter of 2023 compared with RMB634.7 million in the same period of 2022.
“During the second quarter of 2023, we continued to firmly execute our core strategy amid the challenging market environment,” said Ying (Kate) Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement. “Specifically, we remained dedicated to offering compliant, high-quality products while developing new products to meet users’ evolving needs. Though the recent resurgence of illegal products has had a lingering impact on our sales, we believe the impact will be temporary rather than a major trend that could derail our recovery trajectory. As a trusted e-vapor brand for adult smokers, we remain confident that, supported by regulatory oversight, our premium products will continue to win users’ trust and gradually supplant inferior and harmful illegal products. Moving forward, we will continue prioritizing product innovation, harm reduction and quality control initiatives while further enhancing our product portfolio as we strive to create sustainable value for all stakeholders.”
Chao Lu, chief financial officer of RLX Technology, commented, “In light of the external challenges, especially the disruptions from illegal products, we deepened our focus on efficiency and profitability improvement during the second quarter. Thanks to our supply chain optimizations and product design enhancements, our topline improved sequentially to RMB378.1 million, and our gross margin rebounded by 1.9 percentage points from the first quarter of 2023. We also strengthened cost control, which helped significantly narrow our non-GAAP operating loss. Notably, our operating cash flow turned positive for the first time since the new regulations were enacted. We believe our strong cash position will continue to support us in navigating the evolving markets, and we will pursue further gains in cost optimization and efficiency improvement to accelerate the pace of recovery.”
The company hosted an earnings conference call at 8:00 a.m. U.S. Eastern Time on Aug. 18, 2023 (8:00 p.m. Beijing/Hong Kong Time on Aug. 18, 2023).
A live and archived webcast of the conference call will be available on the company’s investor relations website at https://ir.relxtech.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until Aug. 25, 2023.
August 18, 2023
Egypt: Measures to End Tobacco Monopoly

Image: efesenko | Adobe Stock
Tobacco producers and authorities in Egypt are implementing measures to end the distributors’ market monopoly, according to Ahram Online.
The price of locally produced cigarettes has almost doubled over the last three months. The Eastern Company, which holds a 75 percent share of the market, responded by increasing supply.
“The Eastern Company has increased supply in the market from 20 percent to 30 percent,” said Hani Aman, CEO of the Eastern Company.
The prime minister also held a meeting involving the minister of finance to review available stock and plans being implemented by the Eastern Company to increase production and help stabilize the market.
The meeting was used to look at measures being taken to provide necessary raw materials for manufacturing, according to Cabinet spokesperson Nader Saad.
The current crisis was partly caused by a hard currency shortage, affecting the import of necessary raw materials.
Aman stated that it will take efforts of four parties to end the crisis. The first is Eastern Company; regulatory bodies are the second—these are already intensifying efforts to combat monopolization and traders’ exploitation of the market crisis.
“The third party is the merchants whom I call upon to cease stockpiling cigarettes, particularly given the ineffectiveness of such practices in light of the measures taken by regulatory entities,” Aman said. “The fourth participant is the consumer. I appeal to consumers to refrain from purchasing quantities beyond their actual needs and to avoid hoarding.”
“Authorities have confiscated over 200,000 packs of cigarettes in various locations, including Basateen, Matariya, Bab Al-Bahr, Tanta, Alexandria and Sayeda Zeinab,” said Ibrahim Imbabi, head of the Tobacco Division at the Federation of Egyptian Industries, who believes the current measures are not enough.
“I have proposed channeling the confiscated quantities to national gas stations [many of which sell different tobacco brands], thereby ensuring that prices remain stable. This approach would also involve a restructuring of the distribution network, with the Eastern Company directly supplying retailers instead of relying on distributors.”
August 18, 2023
Public Meeting on PMTA Process

Credit: JHVEPhoto
The U.S. Food and Drug Administration will hold a two-day public meeting on the agency’s premarket tobacco product application (PMTA) process on Oct. 23–24, 2023.
The meeting will be held on the FDA’s White Oak Campus in Silver Spring, Maryland, and will be in a hybrid format with the option to attend virtually.
Staff from the Center for Tobacco Products’ Office of Science will present on topics related to the PMTA process and be available to respond to questions received from stakeholders on the topic, according to a press note.
Additional information, including registration and question submission processes, will be available soon.
August 17, 2023
Indonesian Customs Seizes Millions in Goods

Image: Tobacco Reporter archive
Customs in Batam, Indonesia, have seized illicit goods worth IDR1.37 trillion ($89.35 million) in the first half of 2023, including tobacco products, illegal cigarettes, e-cigarettes and alcoholic beverages containing methanol, according to 2Firsts.
The operation was a result of tax operations aiming to ensure compliance of retail tax paying sellers as part of the area’s free-trade zone and free port, according to Anbang Puriyongo, director of Batam Customs.
Three individuals have been named as suspects and undergone trial, according to Puriyongo. He called on citizens to report suspicious activities and actively participate in creating a fair trading environment.
“We will further enhance inter-department coordination and cooperation, leveraging the latest technology,” Puriyongo said. “We aim for such actions to continue in the future, creating a better trading environment for Indonesia.”
August 17, 2023