Category: Featured

  • Campaigners Against Ban on U.K. Cig Sales

    Campaigners Against Ban on U.K. Cig Sales

    Photo: Taco Tuinstra

    Campaigners have slammed the suggestion that a future Labour government could ban the sale of cigarettes to eradicate smoking by 2030.

    Speaking to the BBC, shadow health secretary Wes Streeting said Labour would consult on banning the sale of cigarettes.

    Simon Clark, director of the smokers’ rights group Forest, condemned the idea.

    “The health risks of smoking are well known, but it’s a legitimate habit that millions of adults enjoy,” he said. “Banning the sale of cigarettes to future generations won’t stop people smoking. It would merely drive the sale of tobacco underground and into the hands of criminal gangs.”

    Clark pointed out that current U.K. smoking rates are the lowest on record and an increasing number of smokers are switching voluntarily to reduced-risk products like e-cigarettes without government intervention.

    “Given all the problems facing the NHS [National Health Service] and the country at large, it’s laughable to think that tackling smoking might be considered a priority for a future Labour government,” said Clark.

    During the BBC interview, Streeting said more radical options were needed as the U.K. was set to miss its target of being “smoke-free” by 2030.

    “One of the things that was recommended to the government in one of their own reviews was phasing out the sale of cigarettes altogether over time. We will be consulting on that and a whole range of other measures,” said Streeting.

    Streeting said he would pay close attention to the results of a recently announced law in New Zealand that makes it illegal to sell tobacco to anyone born on or after Jan. 1, 2009.

    Under the new rules, which take effect this year, the country’s smoking age of 18 would be raised year by year until it applied to the whole population. Beginning in 2023, those under 15 would be barred from buying cigarettes for the rest of their lives.

    “I am genuinely curious,” he said. “If we are going to get the NHS back on track, we need to focus on public health.” 

    Streeting’s comments follow a review ordered by Sajid Javid when he was health secretary, which listed 15 measures to give the U.K. its “best chance” of hitting a national target of making the U.K. smoke-free by 2030.

  • Estonia Bans Tobacco Imports from Russia

    Estonia Bans Tobacco Imports from Russia

    Photo: rarrarorro

    Estonia banned imports of cigars, cigarillos and cigarettes from Russia on Jan. 9 in compliance with EU sanctions relating to the war in Ukraine, reports Interfax.

    “On 9 January, the transitional period for sanctions imposed by the European Union on a number of consumer goods originating in the Russian Federation will end, and their import into the European Union will be prohibited from Monday,” the Estonian Tax and Customs Board said in a statement.

    “As from 9 January, the transitional period will also end for those sanctioned goods for which supply contracts were concluded before 7 October.”

    The import ban covers a broad selection of consumer goods, including cosmetics, washing and cleaning products, clothes and footwear.

    The prohibited items must be abandoned by the traveler on the border or risk confiscation, the board said.

  • Altria Seeks Juul Settlement Details

    Altria Seeks Juul Settlement Details

    Image: Tobacco Reporter archive

    Altria Group has requested that a federal judge order Juul Labs to turn over details of its settlement with about 10,000 plaintiffs seeking to hold Juul Labs responsible for a youth vaping “epidemic,” reports Reuters.

    Altria stated that the settlement was “shrouded in secrecy” and that Juul refused to share the information with Altria, which in 2018 took a 35 percent stake in the company.

    Altria was not part of the settlement and remains a defendant in mass tort litigation consolidated before U.S. District Judge William Orrick. Plaintiffs allege Altria took part in shaping Juul’s strategy to market e-cigarettes to minors.

    Altria stated that it needs to see the details of the settlement and the negotiations leading up to it in order to evaluate its potential remaining liability and explore potential claims against third parties. Juul’s refusal to share the information “goes far beyond the protections needed to address those concerns, lack[s] any legal basis and would severely prejudice” Altria.

    In a separate motion, Altria requested that Orrick put a hold on a class action suit seeking refunds on behalf of all Juul purchasers nationwide while Altria appeals the order certifying the class. The company said that it would be heavily burdened by continued discovery related to the suit.

  • Ohio Local Tobacco Rules Ban Vetoed

    Ohio Local Tobacco Rules Ban Vetoed

    Image courtesy of Ohio Office of the Governor

    Ohio Governor Mike DeWine vetoed legislation Thursday that would have prevented individual Ohio cities from regulating tobacco, reports AP.

    “We’re dealing now with young people’s lives, and when a local community wants to make a decision … to protect their children, we should applaud those decisions,” DeWine said.

    Lawmakers passed the legislation during the lame duck session of the Ohio General Assembly days after Columbus officials voted to ban the sale of flavored and menthol tobacco products in the state’s largest city starting in 2024.

    During the debate session last month, lawmakers argued that allowing cities to make tobacco rules could cause cities like Cleveland, Cincinnati and Columbus to ban anything considered unhealthy. Matt Huffman, Republican Senate president, argued that tobacco sales are a statewide issue because the restriction would affect income of the state.

    Opponents argued that the state proposal would have acted as a broader “preemption” law, stopping cities from passing local ordinances beyond state law on new fees or taxes on tobacco products or raising the age to buy them, according to Cleveland.com.

    Advocates from anti-tobacco organizations and the American Cancer society said that preventing cities from making their own rules would have given the tobacco industry more power and would have been especially detrimental to children susceptible to advertising efforts. Democrats also called the measure “a stripping of home rule,” saying that not allowing local communities to govern themselves violates Ohio’s Constitution.

    As of September last year, 24 states have laws preempting local ordinances restricting sales of tobacco to young people, according to the CDC. Both state and federal law prohibit vendors from selling tobacco products to anyone younger than 21.

  • Pyxus Commences Exchange Offer

    Pyxus Commences Exchange Offer

    Image: Scott Maxwell | Adobe Stock

    Pyxus International’s wholly owned subsidiary, Pyxus Holdings, has commenced a private offer to exchange any and all of the issuer’s outstanding 10 percent senior secured first lien notes due 2024 for an equal principal amount of new 8.5 percent senior secured notes due 2027 to be issued by the issuer, according to the company.

    In conjunction with the exchange offer, the issuer is soliciting consents from the holders of the existing notes to amend the indenture, dated as of Aug. 24, 2020, among the issuer, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent, the existing notes and the related intercreditor and security documents as necessary to, among other things, eliminate most of the restrictive covenants and certain of the affirmative covenants applicable to the existing notes; eliminate the change of control repurchase obligation in the existing notes indenture and the existing notes; subordinate in right of payment the existing notes to the issuer’s existing and future senior indebtedness, including the new notes, the new term loans, the existing term loans and the ABL credit agreement; and eliminate certain events of default and release all of the collateral securing the existing notes.

    This follows Pyxus’ previous announcement of its agreement with creditors.

  • Pyxus Enters Agreement with Creditors

    Pyxus Enters Agreement with Creditors

    Image: makibestphoto | Adobe Stock

    Pyxus International and certain of its subsidiaries, including Pyxus Holdings, entered into a Support and Exchange Agreement with a group of creditors, including Glendon Capital Management, Monarch Alternative Capital, Nut Tree Capital Management, Intermarket Corporation and Owl Creek Asset Management, on behalf of certain funds managed by them and/or certain of their advisory clients as applicable, according to a company press release.

    Pursuant to the Support Agreement, the company and its subsidiaries intend to launch comprehensive exchange transactions offered to all qualified holders of its secured debt, by which such holders will be offered the opportunity to exchange all of their secured debt at par for newly issued secured debt, maturing on Dec. 31, 2027. If consummated, the exchange transactions will result in a significant portion of the secured debt being replaced with longer dated debt.

    “The company appreciates the support received from our lenders and noteholders, which demonstrates their confidence in our long-term strategy and the resilience of our business,” said Pyxus President and CEO Pieter Sikkel. “The exchange transactions will provide us with additional flexibility and extend near-term maturities to December 2027, allowing us to focus on the continued growth of our business and driving stakeholder value.”

    The support agreement and the exchange transactions were recommended by a special committee of the board of directors of the company comprising a majority of the disinterested members and approved by the board of directors of the company.

  • Holland and Belgium Tighten Vaping Rules

    Holland and Belgium Tighten Vaping Rules

    Image: Tobacco Reporter archive

    The Netherlands banned flavored e-cigarettes effective Jan. 1, reports The Brussels Times. Companies have until Oct. 1 to remove the flavored products from shelves; retailers can sell their current stock until that date, but new flavors may not be marketed.

    Belgium plans to tighten vaping regulation as well, according to Federal Health Minister Frank Vandenbroucke.

    “E-cigarettes contain some 1,800 different products of which we are far from knowing all the health consequences,” he said. “Maybe some people will switch from regular cigarettes to e-cigarettes, but maybe by using e-cigarettes, people will just end up smoking regular cigarettes.”

    A ban on flavors is not currently planned in Belgium, but a royal decree will soon be published imposing more restrictions on the sale of flavored e-cigarettes. “No more trendy names will be allowed to be given to those flavors, and lights will no longer be allowed on e-cigarettes either,” said Vandenbroucke.

    There will be a six-month transition period for the industry to adapt to the new rules and another six-month period to sell current stock.

  • Vaporesso Authorized to Sell in the UAE

    Vaporesso Authorized to Sell in the UAE

    Image: Tobacco Reporter archive

    The United Arab Emirates’ Ministry of Industry and Advanced Technology (MoIAT) has authorized Vaporesso, a subsidiary of Smoore International, to sell its products in the country, according to PR Newswire.

    The move makes Smoore the first vaping device manufacturer licensed to sell in the UAE.

    “We are thrilled by the MoIAT’s decision to grant our flagship products the marketing and sales authorization; this has boosted our confidence in obtaining the approval for [our] other seven premium products, including Luxe X and Gen PT Series, that are in the process of application,” said a spokesperson for Vaporesso’s Middle East team.

    Vapor companies operating in the UAE must meet Emirates Authority for Standardization and Metrology standards, which set out strict quality and safety requirements for e-cigarettes and related products, before placing them on the market.

    “The initial approval by the MoIAT, which allows the company to establish legal sales channels, both online and offline, for Vaporesso’s Xros NanoXros MiniXros 2 and Zero S across the UAE, is the testimony to the company’s commitment to offering market-leading vaping products with unmatched quality and functionality, allowing the global vapers to enjoy the fun and flavors unique in Vaporesso’s products,” Vaporesso wrote in a press release. “The market authorization also marks a significant step forward in its effort to further expand its presence in the Middle East.”

  • Montenegro Raises Cigarette Duty

    Montenegro Raises Cigarette Duty

    Image: sasel77 | Adobe Stock

    Montenegro increased the excise duty on cigarettes, tobacco and e-cigarettes effective Jan. 1, according to SeeNews.

    Duty increased from €44 ($46.71) per 1,000 cigarettes to €47.50 per 1,000 cigarettes. Cut tobacco duty increased to €55 from €50, and smokeless tobacco duty increased to €145 from €100.

  • Sri Lanka Increases Tobacco Duty

    Sri Lanka Increases Tobacco Duty

    Image: MaciejBledowski | Adobe Stock

    The government of Sri Lanka increased the excise duty on alcohol and cigarettes by 20 percent, according to the Xinhua News Agency.

    State Minister of Finance Ranjith Siyambalapitiya said the duty was raised to increase state revenue and discourage alcohol and cigarette consumption. In 2021, Sri Lanka collected LKR249.6 billion ($687 million) in taxes from alcohol and tobacco products, according to Siyambalapitiya.