Category: Featured

  • 22nd and Core-Mark and Eby-Brown Partner

    22nd and Core-Mark and Eby-Brown Partner

    Photo: 22nd Century Group

    22nd Century Group has established new distribution partnerships with Core-Mark International and Eby-Brown Company, two of the largest convenience store (c-store) distributors in the United States.

    “22nd Century’s new partnership agreements with two of the largest, most respected convenience store distributors in the United States make possible the launch of VLN cigarettes in virtually every key U.S. market we are targeting in our state-by-state, region-by-region rollout strategy,” said John Miller, president of tobacco products for 22nd Century Group, in a statement. “We are proactively working with highly recognized retail chains that want to add VLN to their cigarette sets, many of which are already customers of Core-Mark and/or Eby-Brown, thus streamlining the rollout process.”

    The new partnerships provide nationwide distribution capabilities for VLN via 31 Core-Mark and Eby-Brown warehouses. Additionally, 22nd Century will attend 11 regional trade shows sponsored by the distributors in 2023, providing 22nd Century with the opportunity to introduce VLN to thousands of Core-Mark’s and Eby-Brown’s independent retail and chain store operators.

    “Approximately 70 percent of the estimated 39 million adult U.S. smokers want to stop smoking, though only a tiny fraction are able to quit each year,” explained James A. Mish, CEO of 22nd Century Group. “22nd Century’s proprietary reduced-nicotine tobacco technology has enabled us to develop a truly revolutionary VLN product designed to help smokers smoke less. The c-store channel is the largest point of purchase for cigarette products, and we look forward to partnering with Core-Mark, Eby-Brown and other distributor partners to continue placing our reduced-nicotine content cigarettes in a growing number of stores.”

  • Kenya Proposes Higher Tobacco Stamp Duties

    Kenya Proposes Higher Tobacco Stamp Duties

    Image: alexlmx

    The Kenya Revenue Authority (KRA) wants to increase the stamp duty on combustible cigarettes, electronic cigarettes and other nicotine-delivery devices to KES5 ($0.04) from KES2.8, reports The Star.

    The agency has invited the public to give its views on the proposal by Feb. 3.

    The move to appears to be in response to President William Ruto’s directive to the KRA to double its revenue collection from KES2.1 trillion to more than KES4 trillion.

    Last November, the president said increasing revenue collection would help the country ease its debt burden.

    “I need help with our debt situation. I have agreed with KRA that as a country, we must move from KES2.1 trillion to between KES4 [trillion to KES]5 trillion,” he said.

    According to Ruto, countries in the middle-income category typically raise 20 percent to 25 percent of their GDP from taxes. By comparison, Kenya raises only 14 percent of its GDP in that manner.

  • Mexico Tightens Tobacco Laws

    Mexico Tightens Tobacco Laws

    Image: sezerozger | Adobe Stock

    Mexico has banned smoking in public places, reports Mexico News Daily.

    The country has also prohibited the advertising, promotion and sponsorship of tobacco products, which means that cigarettes cannot be displayed inside shops. E-cigarettes and heated-tobacco products are also facing tighter new restrictions, particularly indoors, as per BBC. Last year, Mexico banned the import, sale and distribution of vaping and heated-tobacco products.

    Several other Latin American countries have also passed legislation to create smoke-free public spaces. Last year, for example, Panamanian President Laurentino Cortizo also signed legislation banning the sale of vapor products in his country.

    However, Mexico’s legislation is considered to be the most wide-ranging in the Americas.

    Critics have cautioned against unintended consequences. Given the prevalence of corruption in Mexico, they fear that some police officers will use the smoking ban as a pretext for demanding bribes.

  • 22nd Welcomes New Menthol Timeline

    22nd Welcomes New Menthol Timeline

    Image: nanzeeba

    22nd Century Group is poised to greatly benefit from the recent advancement of the U.S. Food and Drug Administration’s proposed ban on menthol as a flavoring agent in combustible cigarettes to final rule status, the company wrote in statement published on its website today.

    “The most recent updates to the Biden administration’s Unified Agenda on Regulatory and Deregulatory Actions include major advancements in the FDA’s proposed tobacco harm reduction policies in 2023,” said John Miller, president of tobacco products for 22nd Century Group. “Advancement of FDA’s proposed menthol ban could position VLN Menthol King as the only combustible menthol tobacco cigarette on the market, providing a critical off-ramp to the estimated more than 15 million menthol smokers in the U.S.”

    Menthol cigarettes account for an estimated $26 billion in retail sales. Menthol is also known to enhance nicotine’s addictive effects, making it more difficult to quit, and a disproportionate amount of menthol smokers are members of minority groups, particularly African Americans, 22nd Century wrote on its website.

    “FDA’s proposed menthol policy specifically contemplates exempting certain products from the ban, such as our MRTP authorized VLN cigarettes, providing a critical off-ramp opportunity for adult menthol smokers,” stated John Pritchard, vice president of regulatory science for 22nd Century Group. “Without an off-ramp product, both research and real-world experience show the vast majority of menthol smokers would simply transition to traditional combusted cigarettes. 22nd Century’s MRTP authorization documents how VLN products can help people to smoke less, leading to a true reduction in smoking in line with FDA’s important public health goals.”

    Advancement of FDA’s proposed menthol ban could position VLN Menthol King as the only combustible menthol tobacco cigarette on the market.

    The Unified Agenda also indicates that the FDA intends to advance its transformative reduced nicotine content standards later in 2023, which seeks to limit the nicotine levels in all cigarettes to a level considered “minimally or non-addictive.” Both of these standards are considered game changers for public health and could be extremely favorable for 22nd Century Group due to VLN’s 95 percent reduced nicotine content.

    22nd Century has been expanding sales of VLN cigarettes across five states with anchor partners including Circle K and Smoker Friendly. Following the company’s stated growth strategy to expand to 12-15 states during 2023, 22nd Century is actively engaged with multiple industry leading distribution partners and retail store chains wanting to introduce VLN products to adult smokers in both existing and new markets.

    “The proactive and forward-thinking policies of the FDA have the power to reduce the harms of smoking and save millions of lives,” said Miller. “22nd Century Group continues to fully support these policies, and VLN® reduced nicotine content products demonstrate that these programs are 100 percent achievable.”

    22nd Century Group’s VLN brand cigarettes are the only combustible cigarettes that the FDA has authorized as modified risk tobacco products. The company’s VLN King and VLN Menthol King brands contain 95 percent less nicotine than traditional addictive cigarettes.

    A final decision on the menthol ban is expected in August 2023.

  • BAT Named Global Top Employer

    BAT Named Global Top Employer

    Image: Tobacco Reporter archive

    BAT has been certified as a Global Top Employer for the sixth consecutive year, according to the company.

    Certification is granted by the Top Employers Institute, an independent organization that studies the employee offerings of major employers around the world.

    “We are delighted to have been recognized once again as a Global Top Employer,” said Hae In Kim, director of talent, culture and inclusion at BAT. “Our people are our most important asset as we strive to build ‘A Better Tomorrow.’ The BAT ethos sets a clear direction for us to enable a diverse and inclusive workplace culture, and we are committed to attracting, developing and retaining a talented workforce by putting our people first.”

    In 2023, BAT has been named as a Top Employer in a total of 37 countries across the Americas, Europe, Asia-Pacific, the Middle East and Africa. Certification this year marks the first time BAT’s U.S. subsidiary, Reynolds American Inc., has been named as a Top Employer in the United States.

  • Counterfeit Tobacco Seized in France

    Counterfeit Tobacco Seized in France

    Photo: Europol

    French authorities seized more than 100 tons of illegal tobacco-related products worth €17 million ($18.43 million) during a raid on Jan. 12.

    According to Europol, the confiscated materials included 19.4 million cigarettes and 15 tons of cut tobacco along with 50 tons of packaging materials, such as paper, filters and labels, as well as 18 tons of waste from the cigarette production process.

    Officers also seized vehicles, factory machinery and electronic equipment. The seized tobacco and counterfeit products were destroyed. 

    During the raid, which involved more than 60 officers from the French National Gendarmerie, police arrested nine suspects, most of them Moldovan nationals. The gendarmes discovered a quasi-industrial setup for the production of counterfeit cigarettes in large quantities. They discovered three separate zones in the targeted factory.

    One of the zones was dedicated to the processing of raw tobacco to produce boxes of cigarettes labeled as well-known brands sold on the legal market. Another zone was dedicated to the storage of large boxes of counterfeit cigarettes. The third zone was used as a living area for the workers with some 15 beds, a kitchen and a living room. This allowed the workers to live at the factory, completely cut off from the outside world. 

    Europol facilitated the information exchange and provided specialized analytical support. On the action day, Europol supported the French authorities by cross-checking operational information against Europol’s databases in real-time and providing leads to investigators in the field. 

    In 2020, Europol created the European Financial and Economic Crime Centre to increase synergies between economic and financial investigations and to strengthen its ability to support law enforcement authorities in effectively combating major criminal threats.

  • Reynolds Vapor Denied New Trial in Vuse Case

    Reynolds Vapor Denied New Trial in Vuse Case

    Photo: md3d

    R.J. Reynolds Vapor Co. was denied a new trial in its Vuse Alto intellectual property dispute with Altria Group, according to Bloomberg Law.

    In September, a jury in the U.S. District Court for the Middle District of North Carolina awarded Altria Client Services more than $95 million after finding that Reynolds Vapor Co.’s Vuse Alto e-vapor product infringed three Altria patents.

    Following its loss, Reynolds Vapor Co. requested a new trial, stating that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial.”

    Judge N. Carlton Tilley Jr. disagreed. “That the jury did not agree with” Reynolds “does not mean the trial was unfair,” he wrote in an opinion issued Jan. 12 in the U.S. District Court for the Middle District of North Carolina. 

    Tilley also denied Reynolds’ motion to reduce the damages jurors awarded to Altria Client Services in their Sept. 7 verdict.

    “This was a fair trial,” Altria said in a statement. “There is no basis for another trial, and we are pleased that the jury correctly found that Reynolds Vapor has infringed a number of our patents.”

    At issue in this case were three patents awarded to Altria Client Services by the U.S. Patent and Trademark Office based on filings dating back to April 2015. The jury found that Reynolds Vapor violated Altria’s patents covering the pod assembly used in Vuse Alto.

  • ‘U.S. States Shafting Anti-Tobacco Programs’

    ‘U.S. States Shafting Anti-Tobacco Programs’

    Photo: Feodora

    Only two U.S. states—Maine and Oregon—fund their tobacco prevention and cessation programs at or above the levels recommended by the Centers for Disease Control and Prevention (CDC), according to a new report released by the Campaign for Tobacco-Free Kids (CTFK), American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights and Truth Initiative.

    In fiscal year 2023, American states will collect $26.7 billion from the 1998 Master Settlement Agreement and tobacco taxes. But they will spend just 2.7 percent—$733.1 million—on tobacco prevention and cessation programs, according to the report. This is a $14.5 million increase from last year but still less than a quarter (22.2 percent) of the total funding recommended by the CDC.

    By comparison, the tobacco industry spends $9.1 billion annually to market its products in the U.S., according to the CTFK.

    “To continue driving down tobacco use, address health disparities and stop tobacco companies from addicting another generation of kids, states must step up their funding of tobacco prevention and cessation programs,” said CTFK President Matthew L. Myers.

    The report has appeared annually since the November 1998 landmark legal settlement between 46 states and the major tobacco companies, which, along with individual settlements with four other states, required the companies to pay more than $246 billion over time as compensation for tobacco-related healthcare costs. 

  • Indonesia to Support Tobacco Farmers

    Indonesia to Support Tobacco Farmers

    Photo: Taco Tuinstra

    Indonesia will allocate 50 percent of its tobacco excise revenue sharing fund to support tobacco industry workers and farmers, reports Antara News, citing a Presidential Staff Office (KSP) statement.

    According to the KSP, the effort is necessary to help workers and farmers cope with the impact of global economic uncertainty on Indonesia’s tobacco industry. The assistance will reportedly be offered in the form of fertilizer, machinery and cash.

    The Ministry of Finance requires 3 percent of the tobacco excise revenue to be allocated as a profit-sharing fund managed by the producing regional government.

    Of the revenue-sharing funds, half must be used to improve the people’s welfare, while the remaining 40 percent will be used for health, and 10 percent for law enforcement.

    In December, the government announced it would increase the tobacco product excise rate by 10 percent during 2023–2024. The policy aims to manage cigarette consumption, increase state revenue and monitor illegal cigarettes. 

  • Sri Lanka Urged to Diversify Crops

    Sri Lanka Urged to Diversify Crops

    Photo: Rawpixel.com

    The government of Sri Lanka should incentivize tobacco farmers to abandon the golden leaf if favor of alternative crops, according to a new publication from the Institute of Policy Studies or Sri Lanka.

    The study, reported The Sunday Observer, notes that tobacco farmers can earn better profits from cultivating other crops such as chili, brinjal, carrot, bitter gourd, cabbage and big onion.

    In 2017, the government declared it would ban tobacco farming in Sri Lanka by the end of 2020. While its deadline has lapsed, leaf cultivation has declined significantly in recent years. In 2020, 1,142 hectares, or 0.04 percent of Sri Lanka’s agricultural land, was dedicated to tobacco, according to the most recent statistics. Production totaled 9,224 metric tons that year.

    Among other recommendations, the study authors suggest building farmer resilience and strengthening the policy frameworks for alternative crops.

    These supply-side measures, they argue, could be complemented with demand-side measures to disincentivize the manufacturers from engaging in tobacco production and prevent nontobacco farmers from joining the industry.

    The also called for higher tobacco taxes and more awareness of the adverse health effects of tobacco consumption.