Category: Featured

  • Momentum Building for Tobacco Tax Hike

    Momentum Building for Tobacco Tax Hike

    Photo: Taco Tuinstra

    Momentum is building for higher tobacco duties in Nepal , reports MyRublica.

    During a discussion with health reporters on May 10, Health and Population Minister Mohan Bahadur Basnet said he is prepared to increase the tax on tobacco products and spend the money on health services.

    While developed countries subject tobacco products to tax rates of more than 70 percent, Nepal is currently taxing at a low percentage, according to Basnet.

    Basnet aims to invest the money earned from additional tobacco taxation in government hospitals. Nepal’s budget has struggled in the wake of an economic crisis caused by the Ukraine war and Covid-19.

  • FDA Rejects 6,500 Flavored Vape Products

    FDA Rejects 6,500 Flavored Vape Products

    Photo: Surendra

    On May 12, the U.S. Food and Drug Administration issued marketing denial orders (MDOs) to 10 companies, which collectively manufacture and market approximately 6,500 flavored e-liquid and e-cigarette products. The companies may not market or distribute these products in the U.S., and retailers who sell these illegal products risk FDA enforcement action.

    According to the FDA, the premarket tobacco product applications (PMTAs) provided insufficient evidence to show that permitting the marketing of these products would be appropriate for the protection of the public health. The flavor names of some of the products denied include Citrus, Strawberry Cheesecake, Cool Mint, and Menthol. 

    Since the spring of 2020, the FDA has received applications for over 26 million new tobacco products, the majority of which were for e-cigarette products. To date, FDA has completed review and taken action on over 99 percent of these applications, according to the agency.

    “Science is a cornerstone of FDA’s tobacco product review process,” said Matthew Farrelly, director of the Office of Science within FDA’s Center for Tobacco Products in a statement. “Today’s decision to deny approximately 6,500 products was based on the lack of scientific evidence provided in the applications. We will continue to ensure all new tobacco products undergo robust, scientific premarket evaluation to determine whether they meet the appropriate public health standard to be legally marketed.”  

    The companies that received MDOs include Imperial Vapors, Savage Enterprises, Big Time Vapes, SWT Global Supply, Great Lakes Vapor, DNA Enterprise (“Mech Sauce”), Absolute Vapor and ECBlend.

    FDA is withholding the names of the other two companies that received MDOs to protect potential confidential commercial information.

  • California Officials Sued Over ‘Flavored’ Smokes

    California Officials Sued Over ‘Flavored’ Smokes

    Photo: RAI

    R.J. Reynolds Tobacco Co. (RJRT) has filed a lawsuit against California state officials, including Attorney General Robert Bonta, in response to the Attorney General’s issuance of several Notices of Determination that allege certain Camel and Newport cigarettes styles are “presumptively” flavored based on their promotional materials. The lawsuit, filed in California state court, seeks declaratory and injunctive relief, including that the notices be rescinded.

    In a press note, RJRT said it stands by its new products and believes that they comply with California state law and therefore can continue to be sold. Before introducing the products for sale, RJRT followed all applicable pre-market regulatory requirements.

    According to RJRT, the new Camel and Newport styles do not impart a distinguishable taste or aroma other than tobacco and are marketed to clearly indicate that they are non-menthol. The California Attorney General’s Notices do not acknowledge the fact that RJRT’s new product introductions are prominently labeled and marketed as non-menthol.

    “Reynolds has repeatedly called on enforcement officials in California to take action to combat the flood of illegal, unregulated, disposable vapes in kid-friendly flavors like Watermelon Bubble Gum and Rainbow Candy that are being shipped into the state’s ports from unknown origins,” RJRT wrote. Prioritizing enforcement of these illicit vapor products, rather than focusing on compliant products, would better serve Californians.”

  • Poll Reveals ‘Trust Gap’ In Vaping

    Poll Reveals ‘Trust Gap’ In Vaping

    Photo: Taco Tuinstra

    There is a major trust gap in vaping among smokers, with over half now believing they’re just as harmful as cigarettes or more harmful than cigarettes.

    The poll of 2,000 smokers revealed a growing distrust in switching to vapes. Nearly 38 percent who lack trust, say it could stop them from attempting to quit their smoking habits through vaping in the future.

    The government’s independent Kahn Review said vaping had a central role to play in a smokefree future across the country, with more than 6.5 million people still smoking in the U.K. And evidence last year by the Office for Health Improvement and Disparities (OHID) re-confirmed that vaping was at least 95 percent less harmful than smoking.

    But according to the Adult Smokers Trust in Vaping study conducted by One Poll and commissioned by SMOORE, pioneers in inhalation technology, 29 percent only trust vaping a little as a method to quit smoking, whilst 13 percent do not trust it at all.

    And of those whose trust is diminishing, 35 percent cite the lack of independent long term clinical research showing vaping to be less harmful than smoking. While 31 percent are concerned about the lack of any information available about the harm profile of different vape products.  Other factors that had caused a lack of trust included: negative reports and studies that smokers had come across, inconsistency of government attitudes across the world towards vaping, the growing black market for vapes, and the view of the World Health Organization on vaping.

    “There’s a major push to get smokers to move to vape products, but as of now, they just do not have all the information they need to make an informed decision to switch,” said Chenxing Pei, a senior aerosol engineer at the Smoore Centre for Analysis, Testing, and Safety Assessment, in a press release publish by the U.K. Vaping Industry Association.

    “It’s vital smokers are confident enough to switch, especially since health minister Neil O’Brien said the government must ‘exploit the huge potential of vaping to help adult smokers to quit.’

    “But reducing or quitting is incredibly difficult, it’s imperative to give them the belief that what they are attempting isn’t going to be a waste of time.

    “And if vaping is to be viewed as a credible way to quit, urgent efforts need to be made to ensure smokers trust these products to have the desired impact.”

    The research also revealed how trust among these smokers could be regained, with 30 percent claiming public health campaigns promoting the evidence-based facts could turn the tide. Better education of doctors to give more advice on how vaping can be an effective way to reduce harm caused by smoking, was cited as another key way to build trust.

    Meanwhile, 21 percent would welcome advertising regulations for vaping companies to be lifted—as long as they are promoting evidence from credible sources.

    But confusion persists among 68 percent of smokers when it comes to understanding which products would be suitable to help quit. And 70 percent now “don’t know who to believe” when it comes to vape products.

    Three quarters of smokers want information to be made available on the harm profile of the vape product at the point of purchase. With 87 percent of these saying it is important to know exactly what it is you are inhaling. Many are looking for clarification about the chemical constituents (60 percent), carbon residues (46 percent) and heavy metal content (44 percent) in their vapes.

    However, of those who smoke and vape, 74 percent initially started to reduce their reliance on cigarettes, with 58 percent of these claiming they were successful.

    The study coincides with Smoore establishing an independent think tank of scientific, smoking cessation and compliance experts from the U.K. and U.S. to lay the foundations for an industry-wide harm reduction rating system that can be communicated to consumers on product packaging or accessed via a QR code.

    “The concept of tobacco harm reduction is not widely understood by smokers, and there are widespread misperceptions regarding the relative safety of vaping products compared with cigarette smoking among the general public,” said Ian Fearon, one of the experts on the panel, who has previously worked for Juul Labs and BAT in senior scientific and clinical roles.

    “The development of a harm reduction label may help smokers to understand the reduced risk potential of vaping and encourage switching, in addition to reassuring vapers regarding the quality of the products they use and allowing them to differentiate between different products.

    “Government statistics last year showed that the proportion of smokers in the U.K. was at its lowest level since records begun, a decline which was attributed largely to the major role played by vapes.

    “However, the findings of this study, highlight a significant trust gap amongst adult smokers and it’s crucial for the vaping industry, government, regulators and healthcare professionals to come together to bridge it and support smokers on their quitting journey.

    “It’s clear that open and transparent communication is essential in this process and to supporting the government’s ambitions for the country to go smokefree.”

    Click here to view the report

  • Exports Boost KT&G Profit

    Exports Boost KT&G Profit

    Photo: KT&G

    KT&G reported a net profit of KRW274.23 billion ($206 million) for the first quarter of 2023, up 4 percent over the comparable 2022 period, reports Yonhap News Agency.

    The South Korean cigarette maker credited increased exports for its improved numbers.

    “Increased tobacco sales in emerging markets, such as Indonesia, Africa and Latin America helped the quarterly bottom line,” KT&G wrote in a statement.

    However, quarterly operating profit fell 4.9 percent year-on-year to KRW316.55 billion, due in part to higher leaf tobacco and other raw materials costs. Sales were down 0.5 percent to KRW1.4 trillion from KRW1.403 trillion during the cited period.

    In January, KT&G signed a 15-year supply contract with Philip Morris International, the allows the South Korean cigarette maker to distribute its Lil tobacco-heating products through the multinational’s extensive global sales network.

    KT&G aims to earn more than half of its sales from overseas businesses in 2027. It targets sales of KRW10 trillion won in 2027, compared with KRW5.9 trillion in 2022.

     KT&G has exported its tobacco-heating products to more than 30 countries since 2020 through the PMI’s distribution network.

    The South Korean company earns 90 percent of its overall sales from the cigarette business division and 10 percent from its tobacco-heating products division.

     KT&G has four tobacco manufacturing plants, one each in South Korea, Russia, Turkey and Indonesia, whose combined capacity amounts to 13.6 billion cigarettes a year.

  • Top Court Asked to Review Avail Case

    Top Court Asked to Review Avail Case

    Avail Vapor has asked the U.S. Supreme Court to examine a lower court’s refusal to review a marketing denial order issued by the Food and Drug Administration to Avail products.

    In its petition, known as a Writ of Certiorari, Avail asks the Supreme Court to consider the lower court’s legal reasoning and decision.

    Among other things, Avail argues in its petition that the FDA’s decisionmaking was arbitrary and capricious; that another court sided with a different petitioner against the FDA on the same basic arguments; and that the case is significant not only for Avail but for the entire industry and its customers.

    The Supreme Court has not yet decided whether it will hear Avail’s case.

  • BAT to Upgrade Bangladesh Factory

    BAT to Upgrade Bangladesh Factory

    Image: Piotr Pawinski

    British American Tobacco Bangladesh plans to invest BDT607 million ($5.65 million) in equipment and a centralized uninterrupted power supply device, reports The Daily Star.

    In Dhaka Stock Exchange filing, the multinational company said its board has approved the investment decision.

     The company will use the money to purchase winnower tobacco recovery equipment, a hinge-lid cigarette making and packing line, and a centralized uninterrupted power supply device.

    The investment would enhance the capacity and productivity of the company and would be funded from internal sources and bank financing, the filing said.

  • Zimbabwe Sales Surpass Half a Billion

    Zimbabwe Sales Surpass Half a Billion

    Photo: Taco Tuinstra

    Through the first 40 days of the 2023 marketing season, Zimbabwe tobacco leaf growers have sold 168 million kg of flue-cured tobacco leaf for $500 million, generating an average leaf price this season is $3 per kilogram, reports The Herald.

     At the same corresponding point of the 2023 marketing season, growers had sold 116 million kg of leaf for $348 million, generating an average leaf price of $2.99 per kilogram.

     Leaf sales on contract floors this marketing season totaled 153 million kg for $461 million while leaf traded on the auction floors totaled 14 million kg for $39 million.

     The highest sales price recorded this season was $6.20 per kilogram while the lowest was $0.10 per kilogram.

    This marketing season, leaf growers will retain 85 percent of their earnings in hard currency, up from last season’s mark of 75 percent. The remainder of the earnings will be in local currency pegged at the current interbank exchange rate.

    Total tobacco leaf sales for the entire season are expected to reach 230 million kg compared to 212 million kg sold last season.

    This season, tobacco growers planted on 112,293 hectares of land, down from 116,454 hectares last season.

    The Zimbabwean government aims to create a $5 billion tobacco industry by 2025 by boosting leaf production and moving up the value chain.

  • Finland and Estonia Investigate Smuggling

    Finland and Estonia Investigate Smuggling

    Image: Oleksii

    Finland and Estonia are investigating a criminal case involving the illegal import of millions of cigarettes into Finland from Estonia and Latvia, reports The Baltic Times.

    By failing to declare imports and pay taxes, Finland missed out on approximately €2 million ($2.18 million) in revenue, according to fiscal authorities.

    Finnish and Estonian law enforcement officers recently seized two freight consignments containing a total of almost half a million cigarettes. The seizures are part of a criminal case estimated to involve the illegal import of about 6 million cigarettes spread over more than 20 different occasions between March and December 2022.

     Some of the cigarettes were found to be counterfeit products.

     During the criminal investigation, five persons have been apprehended in Finland and Estonia.

    Sanctions on Russia and the sharp fall in traffic across Finland’s eastern border have shifted many illegal imports to postal and express freight transport, the Finnish customs authority reports.

  • Portugal to Further Restrict Public Smoking

    Portugal to Further Restrict Public Smoking

    Photo: sezerozger

    The government of Portugal plans to ban smoking near schools and hospitals, as well as in covered outdoor seating areas, reports Channels TV. The law would also prohibit smoking in all indoor spaces, including areas currently set aside for smokers in cafes. In addition, venues would not be allowed to sell tobacco products in the covered locations.

    The European Commission intends to decrease tobacco use in the 27-country bloc, which includes Portugal, to less than 5 percent of the population by 2040. 

    “With this law, we hope that young people can live in an environment without tobacco, reduce the incentive to smoke and allow smokers to overcome their addiction,” Health Minister Manuel Pizarro was quoted as saying on May 11.

    “Our objective is to have a generation living without tobacco by 2040… this law is in line with the EU’s anti-tobacco stance, but we wish to go further,” he added.

    In addition to the recently announced measures, the government wants to require manufacturers to print health warnings on new nicotine products, such as e-cigarettes.

    In 2019, 13,500 Portuguese dies from tobacco-related diseases, according to Lisbon.