Category: Featured

  • Turning Point Releases First-Quarter Results

    Turning Point Releases First-Quarter Results

    Image: Tobacco Reporter archive

    Turning Point Brands announced financial results for the first quarter ended March 31, 2023.

    Total consolidated net sales increased 0.1 percent to $101 million from the first quarter of 2022. Zig-Zag product net sales decreased by 8.3 percent from the previous year due to anticipated reduction of trade inventory during the quarter. Stoker’s product net sales increased by 6.2 percent. Creative Distribution Solutions net sales increased by 8 percent.

    Gross profit decreased 6.1 percent to $48.6 million, and net income decreased 30.9 percent to $7.6 million. Adjusted net income decreased 18.1 percent to $11.9 million, and adjusted EBITDA decreased 17.7 percent to $20.8 million.

    “We are encouraged by our first-quarter operating results, which fell within our expectations,” said Turning Point Brands President and CEO Graham Purdy in a statement. “The Zig-Zag segment had an anticipated inventory reduction with certain wholesale customers but saw strong performance from the alternative channel and the rollout of Clipper lighters. With the adjustment in trade inventory, Zig-Zag is now well positioned to demonstrate growth for the balance of the year.

    “Stoker’s had a solid quarter of performance as the value proposition of Stoker’s MST and looseleaf led to another quarter of market share gains. We opportunistically purchased another $13.9 million in aggregate principal amount of our convertible notes during the first quarter while maintaining a strong cash balance. We are currently maintaining our annual guidance as we focus on executing against our plan for the balance of the year.”

  • FDA to Finish Reviewing PMTAs by End of Year

    FDA to Finish Reviewing PMTAs by End of Year

    Credit: Monticello

    The U.S. Food and Drug Administration says it is on track to finish reviewing premarket tobacco product applications (PMTAs) for the most prevalent e-cigarettes by the end of the year, reports CSP.

    The FDA has reviewed 52 percent of covered applications as of March 31. Covered applications are for new tobacco products on the market as of Aug. 8, 2016, with a PMTA filed by Sept. 9, 2020, and sold under the brands Juul, Vuse, Njoy, Logic, Blu, Smok, Suorin or Puff Bar and reach 2 percent or more of total retail sales volume per NielsenIQ reports, according to CSP. 

    Based on the latest status report, the FDA plans to have 53 percent of covered applications acted on by June 30, 55 percent of covered applications acted on by Sept. 30 and 100 percent of covered applications acted on by Dec. 31.  

    The court-ordered deadline for FDA review of PMTAs was Sept. 9, 2021, but the agency did not meet that deadline and now has to file regular status reports on progress. The next status report is due by July 24.

  • Philippines: Seized Cigarettes Destroyed

    Philippines: Seized Cigarettes Destroyed

    Image: Tobacco Reporter archive

    Seized fake cigarettes, raw materials and cigarette manufacturing machines were destroyed in a fire that affected three warehouses in Porac, Pampanga, Philippines, reports The Philippine Star. The items were worth about PHP4.8 billion ($86.8 million). The fire burned for 15 hours despite efforts from firefighters.  

    The Bureau of Customs and the Bureau of Internal Revenue had seized the destroyed items in raids across the country over the past several years. The warehouses were used as storage for what would later be used as evidence against suspects charged in court.  

    The warehouses are owned by Digama Waste Management Services and Greenleaf 88 Nonhazardous Waste Disposal. 

  • Pakistan Expects Tax Hike to Boost Revenue

    Pakistan Expects Tax Hike to Boost Revenue

    Image: Tobacco Reporter archive

    Pakistan’s government expects to collect PKR60 billion ($211.42 million) in additional revenue after increasing the federal excise duty on tobacco products, reports the Pakistan Observer.

    The government dismissed concerns about black market sales.

    The multinational tobacco industry has incorrectly claimed that illicit cigarettes make up 40 percent of the market, according to the government, which cited independent studies showing that illicit products only account for 18 percent of the market.

    According to the Pakistan Observer, the industry is overstating the volume of illegal sales to put pressure on the government following the tax increase.

    The implementation of a track-and-trace system has helped decrease illicit products, according to Malik Imran, country head of the Campaign for Tobacco-Free Kids. “Tentatively, we can say the volume is now negligible,” he said. 

  • Zimbabwe Tobacco Sales Bring in Millions 

    Zimbabwe Tobacco Sales Bring in Millions 

    Photo: Taco Tuinstra

    Zimbabwe’s tobacco revenue has reached $258 million, 19 percent more than in the comparable 2022 period, reports NewsDay.  

    “Income/revenue to farmers increased by 19 percent from $216 million to $258 million this year owing to the tobacco value chain transformation strategy, which is currently in motion, and this is likely to increase the country’s chances of achieving the objectives of V30,” said John Basera, permanent secretary of Lands, Agriculture, Fisheries, Water and Rural Resettlement, referring to the government’s strategy to reduce poverty. “Tobacco output grew marginally by 1 percent from 211,100,219 kg produced during the 2020/2021 production season to 212,711,370 kg in the 2021/2022 season.” 

    Tobacco production is expected to increase by 9 percent from 212,703 tons. 

    Total deliveries were up by 18 percent to 86.14 million kg compared to 72.21 million kg in the same period last year while the average price firmed by 1 percent from $2.97 per kilogram in 2022 to $3 per kilogram in the same period this year. 

  • Ban on Nonprescription Vape Imports

    Ban on Nonprescription Vape Imports

    Image: Tobacco Reporter archive

    The Australian government announced that it will ban the importation of all nonprescription vaping products—including those that do not contain nicotine. The new legislation is billed as containing the most significant tobacco and vaping control measures in the country in a decade.

    The announcement today clarifies last week’s announcement of a crackdown on illegal vaping. This time, the government said it would now include a total ban on nonprescription vaping products.

    To tackle youth vaping, minimum quality standards for vapes will be introduced, including restricting flavors, colors and other ingredients. Vape products will require pharmaceutical-like packaging, and the allowed nicotine concentrations and volumes will be reduced.

    All single-use, disposable vapes will be banned, according to The Guardian.

    Speaking on ABC’s Q&A on Monday night, Australia’s health minister, Mark Butler, said that the tobacco industry was trying to create a “new generation of nicotine addicts” through vaping and that he was “determined to stamp out this public health menace.”

    The move follows an inquiry into vaping reforms led by the drugs regulator, the Therapeutic Goods Administration, with submissions from health professional bodies, public health associations, individual health professionals and university researchers that overwhelmingly support tightening border controls.

    Many public health experts and bodies suggested to the inquiry that border controls should also be placed on non-nicotine vaping products to prevent mislabeling and exploitation of import loopholes. It follows manufacturers falsely labeling products containing nicotine as “nicotine-free” to get around import restrictions, leaving children easily able to buy vapes, often unknowingly inhaling nicotine and becoming addicted.

    The government will also work with states and territories to end vape sales in convenience stores and other retailers. Prescriptions for nicotine vaping products for smokers trying to quit tobacco will be made easier to obtain, with stronger standards around the vaping products that can be bought in pharmacies so people can be assured of the content of the products.

    Butler said he will expand on the reforms in a speech to the National Press Club on Tuesday, where he is expected to say vaping has become “the biggest loophole in Australian history” and announce that the following Tuesday’s federal budget will include AUD234 million ($156.22 million) in funding for tobacco and vaping reforms, the biggest since plain packaging of tobacco products was introduced.

  • 22nd Century Signs Deal with Old Pal

    22nd Century Signs Deal with Old Pal

    Image: Tobacco Reporter archive

    22nd Century announced its second exclusive license, manufacturing and distribution agreement in the hemp/cannabis industry, signed with Old Pal, a consumer company started in California and now operating in eight U.S. states.

    “Old Pal is the second leading consumer hemp/cannabis brand to adopt 22nd Century’s innovative strategic license, manufacturing and distribution agreement. This model enables brands to focus on product development, customer engagement and marketing while we provide expansive access to mass market channels urgently seeking new, high-margin, high-velocity products to meet growing consumer demand,” said James A. Mish, CEO of 22nd Century.

    Initially launched in California in 2018, Old Pal gained recognition for its nostalgic branding. In addition, Old Pal’s continuously growing line of apparel, accessories and home goods has firmly established it as a prominent cultural figure in the world of cannabis, according to 22nd Century.

    The exclusive license with 22nd Century covers Old Pal branded non-delta-9 THC, hemp-derived cannabinoid consumer products and accessories. Similar to 22nd Century’s first single-source integrated production, sales and distribution agreement in hemp/cannabis, signed with Cookies, the Old Pal agreement will leverage 22nd Century’s formulation, ingredient and manufacturing infrastructure plus the company’s turn-key sales and distribution platform for alternative consumer products in a complete go-to-market solution.

    Combined, the company estimates that its agreements with Cookies and Old Pal represent more than $140 million in revenue opportunity with attractive margins over the terms of the contracts. 22nd Century is now advancing its initial mass market retail efforts for these products across the United States, leveraging a network of more than 200 wholesale distributors. The company continues to pursue additional exclusive license opportunities with industry brands interested in its innovative integrated solution.

  • JT Reports ‘Solid’ First-Quarter Results

    JT Reports ‘Solid’ First-Quarter Results

    Image: Tobacco Reporter archive

    Japan Tobacco (JT) reported revenue of ¥665.3 billion ($4.86 billion) in the first quarter of 2023, up 14.4 percent over the comparable 2022 quarter.

    Core revenue at constant currency exchange rates increased by 6.2 percent to ¥594.6 billion. Adjusted operating profit at constant exchange rates increased by 5.1 percent to ¥204.7 billion. On a reported basis, adjusted operating profit increased by 14.6 percent to ¥223.4 billion. Operating profit increased by 15.7 percent to ¥206.4 billion. Profit increased by 16.6 percent to ¥144.7 billion.

    “JT Group delivered solid results in the first quarter, building on the positive momentum across its businesses,” said Masamichi Terabatake, president and CEO of JT. “Robust pricing in the tobacco business continued to drive the strong performance of the group.

    “In line with our plan to increase our presence in HTS (heated-tobacco sticks) and establish the foundations for JT Group’s future earnings growth, we successfully launched Ploom X in Italy and Lithuania in April after an encouraging rollout in the U.K. We are making good progress for additional international launches, with a rollout in Portugal planned for mid-May.

    “Guided by the group’s management principle, which is to pursue the 4S model, and considering the recently announced JT Group Purpose, we will continue to take all necessary decisions to address operational uncertainties, such as regulatory changes, economic instabilities and volatile foreign exchange rates.”

  • As Smoking Declines, More Adults Switching

    As Smoking Declines, More Adults Switching

    Image: Tobacco Reporter archive

    U.S. cigarette smoking dropped to another all-time low last year, with one in 9 adults saying they were current smokers, according to government survey data released April 27. Meanwhile, electronic cigarette use rose, to about one in 17 adults.

    The preliminary findings from the U.S. Centers for Disease Control and Prevention (CDC) are based on survey responses from more than 27,000 adults.

    Last year, the percentage of adult smokers dropped to about 11 percent, down from about 12.5 percent in 2020 and 2021. The survey findings are sometimes revised after further analysis, and the CDC is expected to release final 2021 data soon.

    E-cigarette use rose to nearly 6 percent last year, from about 4.5 percent the year before, according to survey data.

  • Bangladesh Urged Against Interference

    Bangladesh Urged Against Interference

    Image: Tobacco Reporter archive

    Bangladesh should monitor the tobacco industry’s attempts to influence the formulation and implementation of graphic health warnings, according to a new study in the British Medical Journal’s Tobacco Control, reports United News of Bangladesh.  

    The study, “Tobacco Industry Interference to Undermine the Development and Implementation of Graphic Health Warnings in Bangladesh,” examines the tobacco industry’s efforts to “delay and weaken” the implementation of graphic health warnings in Bangladesh.  

    The Bangladesh Cigarette Manufacturers’ Association was the most active industry actor in “interfering” with the process, according to the study, while BAT Bangladesh was most active and the only company that acted alone to thwart graphic health warning implementation.

    The study urges the government to adopt the World Health Organization Framework Convention on Tobacco Control’s Article 5.3 guidelines and make their implementation a policy priority.