Category: Featured

  • Germany to Ban Flavored Products

    Germany to Ban Flavored Products

    Image: Tobacco Reporter archive

    The German Bundesrat approved a third amendment to the Tobacco Products Act, which would ban flavored heated-tobacco products, according to Dokumentations und Informationssytem fur Parlamentsmaterialien.

    The amendment includes “alignment of EU rules banning flavorings and distinctive flavors in heated-tobacco products; definition of the heated-tobacco product and its classification as a smoking tobacco product or smokeless tobacco product, extended labeling requirements in the form of combined text and image warnings and an information message, extension of the ban on placing cigarettes and roll-your-own tobacco with a characteristic flavor on heated-tobacco products; [and] amendment of various sections of the Tobacco Products Act,” according to the German Bundestag website.

  • Distributors Accused of Racketeering

    Distributors Accused of Racketeering

    Credit: Vitalii Vodolazskyi

    New York City has filed a lawsuit in federal court charging four vaping product distributors and six persons associated with the companies for illegally selling flavored vaping products other than tobacco in the city. It is possible more companies will be added to the suit.

    The civil lawsuit, filed Monday in the U.S. District Court for the Southern District of New York, claims the defendants violated “nearly every federal, New York State and New York City law applicable to the marketing, distribution, and sale of flavored e-cigarettes, the sales of which are prohibited under laws enacted by all three jurisdictions.”

    Named in the suit are Magellan Technology Inc., Ecto World LLC (Demand Vape), Mahant Krupa 56 LLC (Empire Vape Distributors) and Star Vape Corp. Also named were Matthew Glauser, Donald Hashagen, Russell Rogers, Nikunj Patel, Devang Koya and Nabil Hassen. The suit also mentions Puff Bar, Elf Bar and Hyde products, however, those manufacturers were not named in the suit.

    The lawsuit alleges the defendants committed mail and wire fraud, alongside violations of New York City’s Administrative Code, New York State Public Health Law, and the federal Tobacco Control Act. The city also accuses the companies of violating both the federal Racketeering Influenced Corrupt Organizations (RICO) Act and the Prevent All Cigarette Trafficking (PACT) Act.

    The suit centers on disposable flavored vapes. However, the suit alleges that is seeking relief for any type of flavored e-cigarette product on the market. This would suggest the suit could grow into anyone entity that has sold flavored vaping products in the city.

    “Although this action speaks principally about (flavored disposables), the favorite type of electronic nicotine delivery system among youth and the most intentionally directed to that market, the City seeks relief for defendants’ violation of laws applicable to e-cigarettes regardless of the type of device with which the violation is committed,” the suit states. “Any non-FDA approved [the FDA authorizes for marketing; it does not approve products] e-cigarette containing a flavored e-liquid is governed by the laws under which the City’s claims are brought and the City seeks relief with respect to all such devices.”

    The city says it “seeks to recover monetary damages and civil penalties from the defendants, potentially totaling millions,” according to a press release. The suit also alleges the sales of disposable flavored vapes created a youth use crisis. The suit alleges the largest increase in youth use ever. The claim is unsupported by any facts.

    “By distributing devices that provide larger than normal doses of nicotine in a mild aerosol formulated to reduce or eliminate the harshness of burning tobacco and tasting pleasantly of fruit, candy or desserts, [flavored vaping device] manufacturers and distributors have triggered the largest increases in youth nicotine use ever seen,” the suit claims.

    The lawsuit states the city will seek triple the damages awarded at trial under the RICO guidelines.

  • Expand Flavor Ban to Reduce Youth Vaping

    Expand Flavor Ban to Reduce Youth Vaping

    Photo: Atlas

    Youth vaping would decline significantly if the U.S. Food and Drug Administration expanded its flavor ban to disposable e-cigarettes, according to a new study from the Center for Tobacco Research at The Ohio State University Comprehensive Cancer Center. The FDA’s current flavor ban only applies to cartridge electronic cigarette devices.

    Researchers surveyed 1,414 individuals between the ages of 14 and 17 regarding their e-cigarette use and behaviors. This included demographic and self-reported information about the type of device used, usage habits, preferred flavors and intent to discontinue use of the vaping device in response to proposed hypothetical comprehensive flavor ban.

    Overall, nearly 39 percent of survey respondents reported they would stop using their e-cigarettes if tobacco and menthol-flavored e-liquids were the only options available, and nearly 71 percent would quit vaping under a tobacco-only product standard.

    “Our data add to an expanding body of evidence showing that youth have a preference for sweet flavorings that make vaping easier for novice users of e-cigarette products, priming them for a potential lifetime of dependency to nicotine,” said senior author Alayna Tackett in a statement.

    In February 2020, the FDA restricted the use of flavorings in cartridge/pod vape devices, but the ban did not extend to disposable devices or to menthol flavoring for all devices. While sales of e-cigarette cartridge products went down, sales of disposable devices and menthol-flavored pod/cartridge devices went up.  

    In April 2022, the FDA issued proposed product standards banning menthol flavoring in cigarettes and cigars.

    While stressing the importance of preventing vaping among young people, Tackett says that flavor restrictions could also impact adults who use e-cigarettes as a tool to quite smoking.

    “Many adults prefer using non-tobacco flavors to switch from combustible cigarettes to e-cigarettes,” said Tackett. “Flavor restriction policies should consider the best ways to protect public health while supporting adults who are interested in choosing potentially less harmful alternatives to combustible cigarettes.”

  • BAT Uganda Impacted by Illicit Trade

    BAT Uganda Impacted by Illicit Trade

    Photo: Taco Tuinstra

    BAT Uganda’s 2022 performance was impacted by the country’s slow economic recovery and growing illicit trade, according to a report in The Independent.

    Gross revenue increased by 6 percent to UGX99.5 billion ($27 million) driven by higher sales volumes. However, general inflation rates drove up the cost of production by 15 percent, causing after-tax profits to drop 6 percent.

    “Whilst the fundamentals of our business remain solid as evidenced by our sustained investment in the country for 95 years, the increasing incidence of illicit trade in Uganda remains a major threat to the sustainability of our business going forward,” said BAT Uganda Managing Director Mathu Kiunjuri during the company’s annual general meeting on July 6.

    The incidence of illicit cigarettes rose from 23.8 percent in December 2021 to 29.4 percent in December 2022, according to industry research.

    According to Kiunjuri, the government loses up to UGX30 billion annually to the illicit cigarette trade. Third-party research indicates that most illicit cigarettes are mislabeled as exports or smuggled in from neighboring countries.

    Uganda is reportedly also increasingly becoming a source of illicit cigarettes in regional markets such as Kenya.

    A recent market study revealed that several BAT Uganda and BAT Kenya brands intended for sale in other countries end up in shops in Uganda.

    Despite the challenges, Kiunjuri praised the Uganda Revenue Authority  (URA), which he said has made significant progress in fighting the illicit cigarette trade. “However, for meaningful and lasting impact, it is critical that government redoubles its efforts, including ramping up multi-stakeholder and cross-border collaboration to ensure effective enforcement and enhancement of anti-illicit trade regulations,” he said.

    According to the URA, cigarette smuggling accounts for up to 27 percent of smuggled goods in Uganda, with the Supermatch brand accounting for more than 90 percent of the seized cigarettes.

  • FDA Denies Marketing of Myblu Menthol

    FDA Denies Marketing of Myblu Menthol

    Image: Tobacco Reporter archive

    The U.S. Food and Drug Administration on July 10 issued a marketing denial order (MDO) for Myblu Menthol 2.4 percent, an e-cigarette product made by Fontem US. The order prohibits the company from marketing or distributing this product in the United States.

    “Thorough scientific review of tobacco applications is a key pillar under FDA’s role to protect the public from the dangers of tobacco use,” said Matthew Farrelly, director of the Office of Science within the FDA’s Center for Tobacco Products. “This application lacked the scientific evidence needed to demonstrate that the product provided a net benefit to the public health that outweighs the known risks.”

    Among other shortcomings, the application presented insufficient scientific evidence to show that the menthol-flavored e-cigarette products provided an added benefit for adults who smoke relative to tobacco-flavored e-cigarettes, according to the FDA.

    Fontem US may resubmit a new application to address the deficiencies for the product subject to this MDO.

    To date, the FDA has authorized 23 tobacco-flavored e-cigarette products and devices. Last year, the FDA issued MDOs to Fontem US for several other Myblu products, which are the subject of ongoing litigation.

  • Flavored Vaping Ban Begins Tomorrow

    Flavored Vaping Ban Begins Tomorrow

    A ban on advertising e-cigarettes in Ukraine, including heated-tobacco products, goes into effect on July 11. Flavored electronic nicotine-delivery systems (ENDS) products are also banned.

    The advertising rule applies to all types of media, including the Internet, social media, public transportation, and public events.

    “The advertising, sales promotion and sponsorship of electronic cigarettes, liquids used in them, and devices for consumption of tobacco products without burning them (including IQOS and glo devices) will be prohibited from 11 July 2023,” according to the WHO Framework Convention on Tobacco Control (FCTC).

    “Flavored cigarettes and flavored liquids for ENDS will also be banned at that date. Further, from 11 January 2024, the combined textual plus pictorial warnings will be required to cover 65 percent of both sides of the pack of smoking tobacco products (conventional cigarettes).”

    The fine in the case of a violation is UAH30,000 ($812), and for each subsequent violation – UAH50,000. In addition, similar to the general smoking ban, the law prohibits the use of heated tobacco products in all public places and businesses.

    In 2021, Ukrainian lawmakers passed the law prohibiting the use of ENDS in public places as well as advertising, sponsorship, and promotion of e-cigarettes. The law also bans the sale of flavored e-liquids other than tobacco flavors.

  • Zimbabwe to Achieve Target Early

    Zimbabwe to Achieve Target Early

    Workers at Atlas Agri receive bales of leaf at the company’s warehouse in Harare. Zimbabwe is anticipating record volumes this season. (Video: Taco Tuinstra)

    Zimbabwe is poised to reach its 300 million kg tobacco crop target ahead of schedule with 284 million kg already delivered and sold this season, reports The Herald.

    Last season the final count was 212 million kg. If the proportions of the final crop delivered by this time are the same as last year, Zimbabwe should reach its 300 million kg 2025 target within a few weeks.

    “Over 284 million kgs of tobacco have been sold this season, surpassing the set targets, meaning we had a good and very productive season,” said Chelesani Tsarwe, public relations officer at the Tobacco Industry and Marketing Board, which regulates the trade.

    In an attempt to extract more value from the country’s tobacco business, the government of Zimbabwe has formulated the Tobacco Value Chain Transformation Plan. The blueprint aims to create a $5 billion tobacco industry by 2025 through a combination of value addition and increased leaf production.

    The 284 million kg compares with 190 million kg sold in the same period last year and represents a new record.

    The Herald, which tends to tow the government line, attributes the country’s productivity to its controversial land reform program in the early 2000s, which involved the confiscation of primarily white-owned commercial farms and redistribution of land to smallholders.

    Prior to land reform, Zimbabwean tobacco was produced by about 1,500 commercial farmers who sold their tobacco at auction. Today, tobacco is produced by tens of thousands of small-scale farmers, most of whom contract directly with leaf merchants because they lack the means to finance their own operations.

    Zimbabwe produces 6 percent of the world’s tobacco. The country reportedly has enough tobacco seed to cater for the next eight years.

  • Ghana Outlaws Vape Sales and Promotion

    Ghana Outlaws Vape Sales and Promotion

    Ghana has banned all recreational use of vaping and e-cigarette products.

    In a press release, the country’s Food and Drugs Authority (FDA) states that the “sale, advertisement and recreational use of electronic nicotine delivery systems (ENDS) such as vapes and other non-nicotine tobacco products by the public” is illegal.

    However, ENDS can be registered as a prescription-only medicine for the purposes of cessation therapy.

    The FDA claims it has sent notice to manufacturers, importers, wholesalers, and retailers to remove all advertisements on social media, billboards and neon signs immediately and refrain from the importation of the products.

    The FDA states that there “will be repercussions including sanctions” for failure to adhere to the rules.

  • Tabaterra to Produce JTI Brands for Georgia

    Tabaterra to Produce JTI Brands for Georgia

    Photo: Tabaterra

    Tabaterra will produce certain Japan Tobacco International brands in Azerbaijan and sell them in Georgia under a recently signed deal between the companies.

    “We are very pleased to have partnership with JTI on the production and export of global brands,” said Tabaterra Director Elman Javanshir in a statement. “The export agreement we signed is a clear example of production of high-quality products at Tabaterra in accordance with international standards.

    According to Javanshir, the export agreement will make a significant contribution to the economy of Azerbaijan, generating annual foreign currency inflows of around $13 million.

    “The export agreement we signed with Tabaterra CJSC is of great importance for JTI in terms of strengthening our position in the Georgian market,” said Sergey Buksa, general manager of JTI for Belarus and the Caucasus region.

    “Based on the experience and production capabilities of our business partner, Tabaterra, we can now manufacture our global brands such as Sobranie, Winston and Camel in Azerbaijan in a shorter period of time and ensure its accessibility for Georgian consumers. The export agreement we have signed will contribute to the increase of trade turnover between Azerbaijan and Georgia.”

    Tabaterra was registered in November, 2017. In addition to its own products, the company produces international tobacco brands under license. 

  • Price Hikes Drive Purchases Abroad

    Price Hikes Drive Purchases Abroad

    Photo: mema

    Consecutive price hikes appear to have prompted Danish smokers to purchase more cigarettes abroad, reports The Local.

    In 2019, Danish smokers purchased 250 million cigarettes in shops across the border. By 2022, that number increased to 700 million, according to the Ministry of Taxation. That reflects a rise in spending from DKR410 million ($60.34 million) to DKR1.15 billion.

    The figures coincide with the rise in price of cigarettes in Denmark. Between 2020 and 2022, the price of a pack of cigarettes increased from DKR40 to DKR60.

    “The Ministry of Taxation’s figures speak for themselves,” Janick Nytoft, managing director of The Cooperative Merchants, an industry organization, was quoted as saying by newswire Ritzau. “You cannot raise taxes in Denmark without increased cross-border trade. Cigarettes bought abroad do not make the Danes healthier, but the treasury and the shops poorer,”

    Meanwhile, a 2022 survey of smoking habits, showed that the rise is cigarette prices had not significantly reduced the number of smokers in Denmark.

    In 2022, 19 percent of people in Denmark smoked daily or occasionally, compared to 18 percent recorded in 2020. Among 15-19 year olds, smoking incidence actually increased. In 2022, 25 percent of this age group said they smoked daily or occasionally—up from 23 percent in 2022. The same age group also experienced a rise in users of e-cigarettes and smokeless nicotine products.

    Health activists said the tax ministry’s numbers proved that the price hikes had been too modest. Mads Lind, chief consultant at the Heart Association, urged the government to increase prices to DKR100 per pack.

    In addition to price hikes, Denmark has been debating other measures to reduce the number of smokers. Other proposals include plain packaging, restrictions on product displays and a so-called generational tobacco ban, which would prohibit sales to people born after a certain date.

    According to the National Health Authority, around 13,600 people die every year from smoking in Denmark.