Category: Featured

Menthol Ban Failed to Boost Illegal Sales

Photo: Rawf8
Banning menthol cigarettes does not lead more smokers to purchase menthols from illicit sources, according to a new research study published in Tobacco Control.
Researchers at the International Tobacco Control (ITC) Policy Evaluation Project at the University of Waterloo evaluated the impact of federal and provincial menthol cigarette bans in Canada by surveying smokers of menthol and nonmenthol cigarettes before and after Canada’s menthol ban.
Smokers were asked whether their usual cigarette brand was menthol-flavored and to report their last brand purchased. Those who were still smoking after the menthol ban were also asked where they last purchased their cigarettes.
Results showed that after the ban, there was no significant change in the purchase of cigarettes from First Nations reserves, the main source of illicit cigarettes in Canada.
“The tobacco industry has a long history of claiming that policies to reduce smoking will lead to substantial increases in illicit trade,” said Janet Chung-Hall, a research scientist for ITC and lead author of the new study, in a statement. “We can add the Canadian menthol ban to the long list of effective policies, such as graphic warnings and plain packaging, whose evaluation disproved the scare tactics by industry—showing that illicit trade did not, in fact, increase.”
A 2022 study that combined the ITC project data with data from a comparable Ontario evaluation study showed that the Canadian menthol ban led to an increase of 7.3 percent in quitting among menthol smokers above that of nonmenthol smokers. Projecting this effect to the U.S., whose Food and Drug Administration has proposed its own menthol ban, the ITC researchers estimate that a U.S. menthol ban would lead 1.33 million smokers to quit.
“Our previous research from Canada and the Netherlands showed that a menthol cigarette ban leads to significant reductions in smoking,” said Geoffrey Fong, principal investigator of the ITC project and professor of psychology and public health sciences at Waterloo. “These findings combine to provide powerful evidence in support of FDA’s proposed menthol ban.”
January 12, 2023
Tobacco Among Fastest Growing Technologies

Photo: Imperial Brands
Tobacco-related products were among the 10 fastest-growing technologies in 2022 when measured by the number of U.S. patents issued, according to IFI Claims Patent Services.
Philip Morris International, which is in the process of replacing its combustible cigarette business with less harmful smoking alternatives, was the most prolific claimant in the tobacco business, filing 1,364 cigarette patent applications in 2022.
South Korean electronics titan Samsung took the top spot from longtime leader IBM. Following Samsung and IBM, the top 10 patent earners were Taiwan Semiconductor, Huawei Technologies, Canon, LG Electronics, Qualcomm, Intel, Apple and Toyota Motor.
Technology related to autonomous vehicles ascended to the No. 1 spot among IFI’s Fastest-Growing Technologies list last year. While “Computing Based on Biological Models” dropped to No. 4 from its perch at No. 1 last year, artificial intelligence research has pervaded multiple patent categories, including earth drilling, quantum computers and machine learning.
Rounding out the top fastest-growing technologies were “Electrical Digital Data Processing,” with a compound annual growth rate (CAGR) of 33.9 percent; “Special Features Related to Earth Drilling Including AI and Simulation Models” (CAGR of 32.5 percent); “Computing Based on Biological Models” (CAGR of 32.1 percent); and “Electrically Operated Smoking Devices” (CAGR of 31.3 percent).
“Cigars, Cigarettes” registered a CAGR of 28.3 percent.
January 11, 2023
Vape Merchants Must Register with BIR

Image: Tobacco Reporter archive
The Philippine Bureau of Internal Revenue (BIR) has requested that vape merchants register their businesses to avoid serious consequences in the future, reports the Manila Bulletin.
Criminal tax evasion charges will be filed against merchants that do not comply with revenue regulations, according to BIR Commissioner Romeo D. Lumagui Jr. Tax evasion charges were previously brought against five major importers and distributors of vapor products, totaling over PHP1 billion ($18.2 million).
Under the law, first-time offenders face a fine of PHP2 million and up to two years in jail. Second-time offenders face a fine of PHP4 million and up to four years in jail. Third-time offenders face a fine of PHP5 million and up to six years in jail. Foreign nationals caught breaking the law would face immediate deportation after serving the appropriate jail term.
January 11, 2023
New Zealand Solicits Feedback on New Rules

Photo: Brian Jackson
New Zealand’s government is seeking feedback on measures to help reduce the number of young people vaping, reports The Times Online.
According to Associate Health Minister Ayesha Verrall, vaping is becoming increasingly popular among New Zealand youth, including among youngsters who have never smoked.
“Vaping has a role to play in ensuring smokers who wish to quit smoking can do so using vaping products; however, youth vaping rates are too high, and we need to strike a better balance,” she was quoted as saying.
The proposed measures include proximity restrictions for all new specialist vape retailers, so they are not near schools and sports grounds; restrictions on flavor names to avoid attracting youth; and restrictions on single-use vaping products, which are cheaper and more easily accessible than other e-cigarettes.
In addition, the government wants to reduce the maximum concentration of nicotine salts in single-use products from 50 mg/mL to 35 mg/mL and require vaping companies to print serial or batch numbers on their products to make them traceable.
The consultation document is available on the Ministry of Health website with submissions closing at 5 p.m. on March 15.
January 11, 2023
Parkside Appoints New Business Manager
Ian Dewar
Parkside Flexibles has appointed Ian Dewar as business unit manager for its Kuala Lumpur, Malaysia, operation.
Dewar’s substantial knowledge of materials, additives and coating formulations will provide Parkside customers with the expertise to develop packaging that balances plastic reduction with barrier performance, all while complying with relevant legislation.
“We are delighted to welcome Ian to our growing team in the region. This is an exciting time for our business as we strive to meet the evolving needs of APAC [Asia-Pacific] customers and consumers, and we expect Ian, with the extensive experience he has gathered throughout his career, will play a big part in that aim,” said Paula Birch, managing director of Parkside Asia.
“2022 has been a big year for flexible packaging in the region following key carbon commitments from the Chinese government, the Indian government’s single-use plastic ban, and many more legislative changes. Ian’s experience puts Parkside in the strongest position for APAC customers seeking to improve their sustainable packaging portfolio with high-performance flexible packaging solutions.”
“There are many challenges to overcome and opportunities to make the most of in the APAC region, and I’m ready to roll my sleeves up and deliver for our customers in 2023,” said Dewar.
With sites in the U.K. and Malaysia, Parkside employs almost 200 staff worldwide.
January 11, 2023
Former STMA Leader Under Investigation

Image: Alexander | Adobe Stock
Chinese authorities are investigating Zhao Hongshun, former deputy chief of the State Tobacco Monopoly Administration, for corruption, reports Xinhua News
In a statement, the Communist Party’s Central Commission for Discipline Inspection and National Supervisory Commission said that Zhao “had lost his ideals and convictions, defied Party discipline and laws, was disloyal and dishonest to the Party and resisted investigation.”
Taking advantage of his posts, Zhao sought benefits for others in personnel promotion, consorted with illegal private enterprise owners, traded power for money and received gifts and money, according to the accusations.
Zhao allegedly also engaged in profit-driven activities against Party rules, and illegally owned shares of companies.
Authorities said Zhao’s illicit gains would be confiscated and the suspected crimes will be transferred to the procuratorate for further investigation and prosecution.
January 10, 2023
In Memoriam: Lusia McAnna
Lusia McAnna
Lusia McAnna, deputy chair of Women in Tobacco (WIT) and former managing director of Pinpoint Technologies, passed away Dec. 19, 2022, after a valiant battle with pancreatic cancer.
McAnna was born in Sheffield in 1955 to Czeslaw and Aniela Zychowicz. During World War II, her grandmother, mother and four aunts were deported from Poland to labor camps in Siberia. After two years of hardship, the family escaped and eventually settled in Britain. Of the 1.7 million Poles deported to Russia, only one-third survived, so McAnna was not exaggerating when she said, “I come from a family of tough women.”
McAnna grew up speaking Polish and English, encountered Spanish when the family followed her father’s work to Colombia for three years, and went on to study Spanish and Russian at Bradford University.
Her languages, along with her determination, equipped her for a career in international sales. Despite the challenges of being a woman in a male-dominated—and at times toxic—business culture, she quickly made a name for herself at Scandura Textiles.
In 1995, McAnna established PinPoint Technologies, a manufacturer of garniture tapes based in West Auckland, England. While it was clear that the industry would benefit from another source of quality tapes, McAnna knew that convincing the conservative tobacco business to try a new supplier would be a tall order.
With a combination of persistence, a highly skilled workforce and a relentless commitment to customer service, McAnna and her colleagues placed PinPoint firmly on the tobacco business map. “It took more than five years to get our tapes tested in some companies who now buy 100 percent from us,” she told Tobacco Reporter during a 2011 interview. Fittingly, Pinpoint adopted Tina Turner’s “Simply the Best” as its company song.
With her friend Elise Rasmussen, she established and ran WIT, an organization that continues to provide hundreds of women with opportunities for networking, mentoring and socializing.
At work, McAnna was as at ease with local staff from the Shildon area as she was with customers from the United States, Turkiye, Japan and elsewhere. When Pinpoint Technologies eventually closed, McAnna fought for a good redundancy package and offered valuable career advice to her employees.
To climb the ladder as a woman in business, McAnna once told a WIT audience, you need to be committed and work extremely hard. To prosper and stay sane, however, you also need a strong sense of humor and take time to de-stress. “If it stops being fun, get out and do something else, as life is much too short to waste,” she noted.
January 10, 2023
Vietnam Wants to Ban New Tobacco Products

Image: Faraz | Adobe Stock
Vietnam’s Ministry of Health has called for a ban on all new tobacco products following the publication of a study suggesting that youth vaping has led to more hospitalizations for psychosis, hallucinations or respiratory failure, reports VietnamPlus.
A recent study found that the e-cigarette smoking rate among students increased to 3.5 percent in 2021 from 2.6 percent in 2019, according to Nguyen Thi Thu Huong, an official from the Vietnam Tobacco Control Fund at the Ministry of Health.
“E-cigarette devices that look like USB drives, pen or pen boxes are making it tough for parents to detect and keep their kids from vaping,” said Nguyen Huu Hoang, a lecturer from the Medical Education Center at Ho Chi Minh City’s University of Medicine and Pharmacy. “They also make young people curious and excited by their eye-catching, fashionable and modern designs.”
January 10, 2023
Imperial Picks Blue Yonder as Supply Chain Solutions Partner

Photo: thodonal
Imperial Brands has selected Blue Yonder as its end-to-end supply chain solutions provider.
Among other things, Blue Yonder’s solutions will provide Imperial with a holistic and connected view of its end-to-end supply chain planning processes, offering strategic scenario planning, demand forecasting and supply chain and inventory optimization. Imperial will be able to evaluate and execute connected planning scenarios and use prescriptive recommendations to make more accurate inventory decisions to improve the customer experience.
“As our industry continues to evolve, so must our company, and supply chain is one of our core transformation areas. Our strategy is to drive an end-to-end supply chain integration across our planning, logistics and retail operations, and we have chosen to do this with Blue Yonder as our supply chain solutions provider,” Javier Huerta, chief supply chain officer at Imperial Brands, was quoted as saying in a Blue Yonder press note.
“Imperial was looking for a supply chain solutions provider to lead and transform their business. We are proud that they have chosen Blue Yonder to guide them on this journey,” said Phillip Teschemacher, Blue Yonder’s corporate vice president of manufacturing for EMEA.
January 10, 2023
Menthol and Nicotine Timelines Accelerated

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The Biden administration released its Unified Agenda and Regulatory Plan for fall 2022, which includes moving forward the timeline for a federal ban on menthol-flavored cigarettes, reports The Winston-Salem Journal.
There are eight rules that address the tobacco industry, and three have “notable changes” from the spring 2022 plan, according to Jain Gaurav, a Barclays analyst. These include: Rules on a menthol ban in cigarettes and flavored cigars have moved to the “final rule stage” versus the “proposed rule stage”; rules to ban characterizing flavors in cigars have also progressed to the final rule stage; and the nicotine cap proposed standard development has been moved from May to October.
“We continue to believe the Food and Drug Administration’s focus is going to revolve around the evaluation of premarket tobacco [product] applications of deemed products, notably e-cigarettes, in the next few months,” Gaurav said.
“The FDA intends to publish a final (menthol) rule by August 2023. We expect a two-[year] to three-year cycle from the day FDA passes any rule to the time such rule survives the inevitable court challenges.
“We don’t expect a menthol cigarette ban from the FDA implemented (if it were to pass) at least until 2026.”
A cigarette menthol ban could have negative impacts on tobacco stocks with a significant U.S. presence, according to Gaurav and other tobacco industry analysts. Menthol cigarettes account for 35 percent of cigarettes sold in the U.S.
“While there is some risk, a federal ban on menthol cigarettes could reduce smoker initiation and potentially be a catalyst that prompts a number of smokers to quit, thereby having some negative impact on cig volumes,” said Bonnie Herzog, Goldman Sachs analyst, “we continue to believe a more likely scenario is for menthol cig users to convert to nonmenthol cig products or to reduced-risk products that have a menthol variant, such as e-vapor.”
It is expected that the FDA will face lawsuits from tobacco manufacturers and anti-smoking groups if the ban goes through because Congress exempted menthol from banned flavorings in traditional cigarettes in the federal Tobacco Control Act in 2009.
In June, the FDA issued its proposal to reduce nicotine content in traditional cigarettes to minimal and potentially nonaddictive levels as early as May 2023.
“We think it will take a decade or longer for the FDA to introduce nicotine caps due to the long nine-step process at the FDA, the inevitable litigation and then the one year given to retailers to get rid of the excess inventory,” Gaurav said.
January 9, 2023