E-cigarette use among teens in Vietnam is rising, reports The Star. In 2022, 3.5 percent of 13 year-olds to 15 year-olds were reported to use e-cigarettes compared to 2.6 percent in 2019.
Vietnam is ranked third among Southeast Asian countries with the highest smoking prevalence, behind Indonesia and the Philippines.
Low cost has been cited as a motivator; Angela Pratt, a World Health Organization representative, said that prices are so low they do not create a barrier for teens starting to smoke. Pratt suggested raising taxes to help curb smoking.
Vietnam’s tobacco tax rate is 35.6 percent of retail price compared to the world average of 56 percent and the WHO’s recommended 70 percent.
The Ministry of Finance is seeking a public consensus to raise the special consumption tax on tobacco, beer, alcohol and sweetened drinks.
Headquartered in Istanbul, the company has begun constructing a reconstituted tobacco factory in Bizerte, Tunisia. The new facility will be the company’s fourth such operation worldwide.
Comprising two plants with an annual capacity of 1.2 million kg each, the factory is the first of its kind in the region. The facility will serve the domestic market and may expand its business to serve customers in Morocco and Algeria, depending on the success of the operation.
Star Agritech expects the new factory to be operational by the middle of 2023. Prior to announcing the new recon facility, Star Agritech established offices in Tunisia, Egypt and South Africa. The Tunisian office will assume responsibility for Star’s business in north Africa, the Sahel and west Africa.
In November 2022, Star Agritech established Star Agritech Commodities Trading in Yaounde, Cameroon, to strengthen its cigar leaf growing and sourcing operations in Bartouri and Bertoua. The Cameroonian facility will also implement sourcing at the farm gate for Cameroonian cacao and coffee.
In December, Star Agritech set up shop in New Delhi to further develop its sourcing of Indian tobacco. In the same month it incorporated Star Agritech Zimbabwe to enter the domestic market for flue-cured Virginia tobaccos. Star Zimbabwe will participate in the 2023 marketing season, which kicked off March 8.
Meanwhile, Star Agritech has set up a company in Norfolk, Virginia, USA to supply the North American market with tobacco and tobacco derivatives.
The company believes its nano fiber reconstituted tobacco, which can help cigarette manufacturers reduce their products’ tar and nicotine levels, has considerable potential in the United States, given the Food and Drug Administration’s intention to mandate reduced levels of nicotine in tobacco products.
Cuban tobacco farmers are working to recover after Hurricane Ian hit the region six months ago, destroying 80 percent of the country’s tobacco infrastructure, reports AP.
When Hurricane Ian his last September, it destroyed almost everything: “Not a single tobacco house was left standing,” said Hirochi Robaina, one of the most recognized tobacco producers in Cuba. “There were no warehouses; there was no tree left. Everything broke, and at that moment, I did not believe it was possible to plant.”
After the tragedy, Robaina was resigned to planting beans and vegetables instead of tobacco, but he changed his mind “to maintain the family tradition of a century,” and he was able to plant and grow about 2 hectares, which accounts for about 30 percent of what he had in 2022.
Private tobacco producers have been meeting with Cuban authorities since the hurricane to secure commitments for the state to help settle debts and pay for materials to rebuild tobacco drying houses, according to AP. Nicaragua and the Dominican Republic as well as other producers have also stepped in to help Cuba recuperate.
The planned area for tobacco planting this year is down to 9,500 ha from an initial plan of 15,000 ha, according to Enrique Blanco, agricultural director of Tabacuba. Under fabric cover, 2,100 ha of premium leaf will be grown, which Cuba hopes to use to cover export demand.
For the full year of 2022, Scandinavian Tobacco Group delivered a 3.5 percent negative organic EBITDA growth in line with the guidance range of minus-4 percent to 0 percent, free cash flow before acquisitions at DKK1.3 billion ($184.5 million) and an increase in adjusted earnings per share (EPS) of 8 percent. The EBITDA margin before special items was 25.9 percent. For the full year of 2023, net sales and EBITDA margin before special items are expected in the range of DKK9 billion to DKK9.3 billion and 24 percent to 25 percent, respectively.
For the fourth quarter of 2022, organic EBITDA increased by 13 percent with an EBITDA margin before special items at 25.8 percent, and the free cash flow before acquisitions was DKK530 million. These results were driven by a resilient demand for most product categories, including handmade cigars in the U.S., price increases across most product categories and continued cost efficiencies.
Net sales for the fourth quarter were DKK2.19 billion with 1.7 percent organic growth. EBITDA before special items was DKK563 million with 13.3 percent organic growth. The EBITDA margin was 25.8 percent. Adjusted earnings per share were DKK4.4. Return on invested capital was 14.3 percent.
For the full year of 2022, net sales decreased by 0.8 percent organically to DKK8.76 billion, and EBITDA before special items decreased by 3.5 percent organically to DKK2.27 billion with free cash flow before acquisitions at DKK1.26 billion.
“In the current environment, I’m pleased we can deliver a solid performance for the fourth quarter and the full year, which is in line with our financial expectations,” said CEO Niels Frederiksen. “In a challenging year, we have made good progress on our strategy ‘Rolling Toward 2025.’ Our vision is to become the undisputed and sustainable global leader in cigars, and the recent acquisition of the Alec Bradley cigar business brings us one step closer to achieving this. Our ambition of becoming a larger company, to grow our EBITDA margin over time and to generate outstanding cash flow are all important pillars for creating continuous shareholder value. I am confident we will make further progress in 2023 on our long-term strategy.”
At the annual general meeting on April 13, 2023, the board of directors will propose an increase in the ordinary dividend of 10 percent to DKK8.25 per share.
For the financial year 2023, guidance metric for the group will be changed. In the financial statements going forward, the group will report on and publish expectations for reported net sales and EBITDA margin before special items instead of organic EBITDA growth. The new guidance metrics will better reflect the group’s operational performance and will increase transparency from divisional performance to group level.
A conference call will be held on March 9, 2023, at 10:00 CEST. Dial-in information and an accompanying presentation will be available at investor.st-group.com/investor around 09:00 CEST.
Poorer households in Scotland spend almost a third of their income on tobacco, reports Daily Record, citing a study by Action on Smoking and Health.
Analysis by the health group shows that the country’s lowest income group will spend a whopping 29.4 percent of their income on tobacco products in 2023—about nine times more than the 3.35 percent estimated to be spent by households in the highest income group.
The research also estimates that households in the lowest income group containing at least two smokers will spend more than £6,000 ($7,129), or 73.5 percent of income, on tobacco in 2023.
“Tobacco is a major cause of inequalities, and the projected figures for 2023 we are releasing today spotlight the increasing need for NHS Quit Your Way services in Scotland to be better resourced and promoted to support people to leave tobacco behind, especially in communities facing the greatest challenges,” ASH Scotland CEO Sheila Duffy was quoted as saying.
In response to its findings, ASH Scotland called for increased smoking cessation support in communities experiencing deprivation.
22nd Century Group reported net revenues of $19.2 million in the fourth quarter of 2022, up 141 percent from the comparable 2021 quarter. Revenue from tobacco-related products increased 25.7 percent to $10 million, primarily driven by volume increases in contract manufacturing and initial sales of the company’s VLN brands as part of an early rollout in Illinois and Colorado.
“The fourth quarter and 2022 were transformative for 22nd Century as we launched an aggressive commercial rollout of our FDA-authorized VLN reduced nicotine content cigarettes and accelerated revenue and margin growth opportunities with our hemp/cannabis business unit,” said 22nd Century Group CEO James A. Mish in a statement.
“Following our exceptional pilot results indicating our ability to initially capture a 1 percent share of market, several of the largest convenience store chains in the U.S. are seeking to carry our VLN products on a regional or multi-state basis.”
Looking forward, 22nd Century says it is poised to benefit from growing regulatory appetite to reduce nicotine content and ban mentholated tobacco products. The company’s VLN cigarette is currently the only Food and Drug Administration-authorized combustible cigarette able to meet the reduced nicotine content product standard under the FDA’s Comprehensive Plan requiring that all cigarettes be made “minimally or non-addictive.”
Meanwhile, the FDA’s proposed menthol cigarette ban, which is currently in final rules status, would leave VLN Menthol King as the only combustible menthol cigarette on the market. The company expects its low-nicotine leaf tobacco business to benefit from New Zealand law that will permit only reduced nicotine content cigarettes to be sold starting in early 2025.
22nd Century planted the largest ever VLN tobacco crop in 2022, including the second-generation VLN 2.0 reduced nicotine tobacco plants, which have demonstrated approximately 30 percent higher yields, enhanced quality leaf, improved disease resistance, reduction in nutrient requirements and increased stability across various environments and geographies.
Dutch parliamentarians want e-cigarettes and other vaping products to have a uniform appearance, reports RTL Nieuws.
According to the D66, which will submit the proposal in parliament today, the new rules will make vaping less attractive to teenagers. A majority in parliament supports the plan, RTL Nieuws reports.
“Young people now think it’s cool to have such an accessory with glitter while vaping is extremely unhealthy,” D66 parliamentarian Jeanet van der Laan told the broadcaster. “The vapes resemble a lip gloss or a marker. They are often colorful, and there are vapes full of glitter. Parents often have no idea exactly what the young people are carrying. Super worrying.”
There are even e-cigarettes in circulations that look like airpods, Van der Laan said. “That makes it look like a glamor accessory, while it is just smoking and therefore harmful to health. And young people are tempted by all those frills to start smoking.”
“E-cigarettes should look as neutral and uniform as possible. Preferably they should resemble regular cigarettes. Or else just white or black. Because it’s just smoking,” D66’s MP said. She believes a more boring appearance will make vaping less attractive to young people.
The lower house of the Dutch parliament is discussing smoking on Wednesday. D66’s proposal seems to have majority support, according to RTL.
The U.S. Food and Drug Administration is proposing new requirements for tobacco product manufacturers regarding the manufacture, design, packing and storage of all tobacco products.
The proposed requirements would help protect public health by, among other things, minimizing or preventing contamination and limiting additional risks by ensuring product consistency, according to an FDA statement.
“While no tobacco product is safe, this proposed rule is intended to minimize or prevent additional risks associated with these products,”
Brian King / Credit: FDA
said Brian King, director of the FDA’s Center for Tobacco Products. “Once finalized, it would establish requirements for tobacco product manufacturers that will help protect public health.”
The proposed new requirements would help manufacturers comply with the Federal Food, Drug, and Cosmetic Act by helping minimize or prevent the manufacture and distribution of tobacco products contaminated with foreign substances—such as metal, glass, and plastics—which have been found in tobacco products. T
The proposed rule would also help address issues related to inconsistencies between e-liquid product labeling and the actual concentrations in e-liquids, “Such variability can be misleading to consumers, potentially intensifying addiction and exposure to toxins,” the agency states.
The proposed rule would also establish several requirements related to the identification, tracing and corrective actions for tobacco products that don’t meet specifications or are contaminated, including for tobacco products that have already been distributed.
In the event of an issue, these requirements would require manufacturers to take corrective actions, which may include conducting a recall.
The proposed requirements apply to manufacturers of finished and bulk vaping and other tobacco products. As laid out in the proposed rule, a finished tobacco product is a tobacco product, including any component or part, sealed in final packaging; for example, an e-cigarette, a pack of cigarettes or a can of moist snuff.
A bulk tobacco product is a tobacco product that isn’t sealed in final packaging, but is otherwise suitable for consumer use.
The proposed rule establishes a framework for manufacturers to adhere to, including:
establishing tobacco product design and development controls;
ensuring that finished and bulk tobacco products are manufactured according to established specifications;
minimizing the manufacture and distribution of tobacco products that don’t meet specifications;
requiring manufacturers to take appropriate measures to prevent contamination of tobacco products;
requiring investigation and identification of products that don’t meet specifications to institute appropriate corrective actions, such as a recall; and
establishing the ability to trace all components or parts, ingredients, additives and materials, as well as each batch of finished or bulk tobacco product, to aid in investigations of those that don’t meet specifications.
The FDA will hold a public oral hearing on April 12 to gather additional comments from stakeholders, including industry, the scientific community, advocacy groups, and the public.
The proposed rule also will be available for public comment for 180 days. The agency will review all comments as part of the rulemaking process for this foundational rule.
“We remain committed to transparency and stakeholder engagement, including providing clarity to industry so that they are equipped to comply with the law,” said King. “We encourage all interested individuals and organizations to participate in the rulemaking process. When the public submits a comment based on sound grounds, that can make an important difference in the agency’s decision-making.”
The FDA will also hold a meeting of the Tobacco Products Scientific Advisory Committee (TPSAC) on May 18 to seek recommendations from the agency’s outside panel of experts on the requirements laid out in the proposed rule. As part of the TPSAC meeting, the public will have an opportunity to make oral presentations. The FDA intends to make TPSAC meeting materials available on its website no later than 48 hours before the meeting.
Tobacco prices in Zimbabwe fetched $4.35 per kg at the start of the new marketing season today, up from $4.20 last year, reports Reuters.
“It looks like we are going to have a good crop,” said Tobacco Industry and Marketing Board (TIMB) Chairman Patrick Devenish, who credited favorable rainfalls.
The TIMB expects the country to produce 230 million kg of tobacco this year, 8.5 percent more than in 2022.
Tobacco land use grew to 117,000 hectares this year from 110,000 hectares in 2022, according to the TIMB. The industry also saw an increase in the number of tobacco farmers to 148,527 this year from 123,000 in 2022.
The tobacco industry contributes nearly $1 billion to export earnings every year, Zimbabwean Vice President Constantino Chiwenga said on March 8. Government statistics showed it accounted for more than 12 percent of exports in January.
Zimbabwe is currently implementing a “Tobacco Value Chain Transformation Plan,” which seeks to extract more profit from the sector by processing raw leaf into higher-value products.
“We seek to localize the financing of tobacco. We wish to transform the tobacco sector so we don’t export value,” Agriculture Minister Anxious Masuka said on March 8.
Kaival Brands Innovations Group, the exclusive U.S. distributor of Bidi Vapor products, has entered into agreements representing potential new distribution to approximately 13,500 locations.
Under the terms of the agreements, Bidi Vapor’s Bidi Stick will initially be activated in 700 locations, with another 1,500 locations expected within the next 90 days. All of the new locations meet Kaival Brand’s and Bidi Vapor’s requirements for customer identification verification and youth-access prevention.
“We are excited to announce these significant new distribution agreements, totaling up to 13,500 new locations, as we look to continue the ramp up of marketing and sales activity for Bidi Stick. Since Bidi Vapor succeeded in its merits case against the FDA vacating FDA’s marketing denial order for ENDS products in August 2022, we have seen a resurgence of interested retailers and potential distributors,” said Kaival Brands President and Chief Operating Officer Eric Mosser in a statement.
“While the FDA continues to move slowly in enforcing against bad actors, major retailers are showing their commitment to e-cigarettes as a category and using corporate discretion to select brands that are committed to youth-access prevention and responsible marketing of adult products. We believe our products fit squarely in this category, and we are hopeful that this positioning will lead to greater revenues for Kaival Brands during 2023.”
“We are excited to increase the reach of the Bidi Stick by up to 13,500 new stores,” stated Russell Quick, president of QuikfillRx, which operates under the name Kaival Marketing Services. “These new agreements represent an immediate impact of 700 new locations to start and we believe represents a vote of confidence that retailers have in us and our products.”
