Category: Featured

Appointments at Japan Tobacco

Photo: Taco Tuinstra
Kei Nakano, currently the senior vice president, will take on the role of executive vice president and representative director, effective Jan. 1, 2023, and March 24, 2023, respectively. Nakano will succeed Naohiro Minami, who will assume a new position as member of the board without the right to represent the company as of Jan. 1, 2023, and will resign as member of the board upon the ratification at the 38th annual general meeting of shareholders, scheduled for March 24, 2023.
Suguru Fujiwara will assume the role of senior vice president of corporate affairs and communications for the tobacco business in Japan. Hisashi Shimobayashi will assume the role of senior vice president of information technology. Yuki Otaki will assume the role of senior vice president of D-LAB. These newly appointed officers’ positions are effective Jan. 1, 2023.
A full list of resigning board members and changes in responsibility can be found on JT’s website.
November 29, 2022
EU: Sweden Retains Right to Set Snus Tax

Photo: Marcus
The EU Commission’s spokesperson for tax matters, Daniel Ferrie, said at a press conference on Nov. 28 in Brussels that Sweden has the right to set the tax level on snus.
His comments, reported by Aftonbladet, follow an uproar among Swedish snus lovers after the publication of a leaked document suggesting the EU wants to force Sweden to raise the tax on snus by 200 percent.
The document, which was seen by Aftonbladet, contains proposals for a new excise tax on tobacco.
If applied to Sweden, the price of a can of portioned snus would have increased by approximately SEK34 ($3.26). The price of a can of loose snus would have increased by approximately SEK62 compared to today. A can of General loose snus would cost over SEK120 under the proposal.
Reminding his audience that Sweden is exempted from the EU snus ban, Ferrie said the bill under discussion would not change Sweden’s status. “Sweden will retain its full freedom to set tax regimes and excise taxes for snus,” he said.
November 28, 2022
Stabilization Settlement Funds Available

Photo: Taco Tuinstra
Current and former tobacco growers who wish to claim funds from the U.S. Tobacco Stabilization lawsuit settlement should complete a proof of claim form by Dec. 12, 2022.
The settlement stems from a lawsuit against the Flue-Cured Tobacco Cooperative over withheld funds, which are now being returned to qualifying grower members.
Tobacco growers who were a member of the cooperative at some point between 1946 and 2004 are eligible for payment considerations.
Growers claiming funds must supply their FC Number. Alternatively, they must provide sufficient identifying information, including all names and addresses used during the period that they marketed flue-cured tobacco.
A copy of the qualified settlement fund procedures, the proof of claim form and additional relevant information is available at https://omniagentsolutions.com/lewissettlementclasstrust.
November 28, 2022
Philip Morris International to Delist Swedish Match

Photo: Tobacco Reporter archive
Philip Morris International plans to take Swedish Match off of the stock market now that it owns a large enough share of the company to initiate a compulsory redemption of remaining shares, according to Reuters.
“We are delighted to have obtained over 90 percent ownership of Swedish Match, allowing us to initiate a minority redemption process to acquire the remaining shares outstanding and request the delisting of the company from the stock market,” said PMI CEO Jacek Olczak in a statement.
“This transaction marks a major milestone in accelerating our shared objective of a smoke-free future. We look forward to welcoming Swedish Match’s employees and leading oral nicotine portfolio into the PMI family to create a global smoke-free champion, notably bringing IQOS and Zyn together in both the U.S. and international markets.
“We are very excited about the growth, value creation and progress in tobacco harm reduction that we believe can be achieved together over the coming years. Despite the increased cost of financing over recent months, we expect the combination to be low single-digit accretive to PMI’s adjusted diluted EPS in 2023, before potential revenue synergies and excluding transaction-related and one-off costs and the amortization of acquired intangibles.”
In May, PMI submitted a $16 billion takeover bid for Swedish Match. The bid initially received pushback from Elliott Management, Framtiden and other stakeholders as they felt that it undervalued the company. PMI later raised its bid from SKK106 ($10.21) per share to SKK116 per share. Elliott Management, Framtiden and the other shareholders agreed to tender their shares after the bid was raised, and PMI secured over 83 percent approval by the end of the initial offer period.
November 28, 2022
Ireland Approves E-Cigarette Rules
Photo: Josemaria Toscano | Adobe Stock
Ireland Minister for Health Stephen Donnelly and Minister for Public Health Frank Feighan received government approval to introduce additional restrictions on the sale and advertising of nicotine inhaling products such as e-cigarettes, according to Gov.ie.
Under the new proposals, the sale of e-cigarettes and related vaping products will be prohibited from self-service vending machines, from temporary or mobile premises and at places or events for children. In addition, advertisements for e-cigarettes will be prohibited on public transport, in cinemas and near schools.
“These measures are designed to protect our children and young people from starting to vape,” said Donnelly. “We recognize that nicotine is a highly addictive drug, and we are acting today to make these products less accessible to our young people and to remove the advertising for these products from our children’s everyday lives.”
The proposals will be incorporated into the Public Health (Tobacco and Nicotine Inhaling Products) Bill, which is currently being drafted. The bill is expected to be finalized and published by year end. The legislation will be designed to regulate any product that can be used for the consumption of nicotine-containing vapor or any component of that product.
The bill already contains measures to ban the sale of nicotine inhaling products to those under the age of 18 and to introduce a licensing system for the retail sale of tobacco products and nicotine inhaling products. Other measures contained in the bill include:
prohibiting the sale of tobacco products and nicotine inhaling products by persons under 18 years of age;
prohibiting the sale of tobacco products from self-service vending machines, from temporary or mobile units and at events or locations for children;
introducing minimum suspension periods for retailers convicted of offenses; and
introducing fixed penalty notices for offenses.
Feighan welcomed the government’s approval of the measures.
“Tobacco smoking continues to kill approximately 4,500 people in our country each year,” he said. “We recognize that nicotine inhaling products are used by some adult smokers to assist them to quit tobacco smoking. However, we are clear that these products are of no benefit to our children and young people or to nonsmokers, and that is why we are taking this action today.”
November 28, 2022
Commission to Propose EU-Wide Vaping Levy

Photo: Sergii Figurnyi
The European Commission (EC) wants to increase the minimum excise duty on cigarettes to €3.60 ($3.77) from €1.80 per pack of 20 and introduce a bloc-wide vaping levy, reports the Financial Times, citing a draft EC document.
If enacted, the legislation would double cigarette excise duties in EU member states with low cigarette taxes. In some eastern European nations, cigarette packs currently sell for under €3. Excise duties on cigarettes would also increase considerably in countries such as Austria and Luxembourg where prices are low relative to income. The tax rise on cigarettes is expected to generate an extra €9.3 billion for EU member states.
The update to the 2011 EU tobacco taxation directive will also bring the taxation of electronic nicotine-delivery systems into line with cigarettes. Stronger vaping products would have an excise duty of at least 40 percent applied to them while lower strength vapes will face a 20 percent duty. Heated-tobacco products will also be hit by 55 percent duty, or a tax rate of €91 per 1,000 items sold.
Rob Branston, senior lecturer in business economics and a member of the University of Bath’s Tobacco Control Research Group, told the Financial Times that the tax regime update was “long overdue” to increase prices in countries where cigarettes were “too cheap” and to catch up with inflation.
But Peter van der Mark, secretary-general of the European Smoking Tobacco Association, warned that a sudden steep increase in tax rates would likely boost illicit tobacco sales.
Dustin Dahlmann, president of the Independent European Vape Alliance, said that imposing taxes on novel tobacco products could lead to “the much less harmful alternatives” to smoking being “taxed far too heavily in many countries.”
The proposal will have to be agreed on by all EU member states before it is enshrined in law. BAT stressed that the EC draft proposal was “the beginning of a long legislative process.”
November 28, 2022
Snus Lovers up in Arms After EU Tax Proposal

Photo: Marko Hannula
Swedish snus lovers are up in arms after the publication of a leaked document suggesting the EU wants to force Sweden to raise the tax on snus by 200 percent.
The document, which was seen by the Swedish daily Aftonbladet, contains proposals for a new excise tax on tobacco.
If the plan becomes reality, the price of a can of portioned snus could increase by approximately SEK34 ($3.26). The price of a can of loose snus would increase by approximately SEK62 compared to today. A can of General loose snus would cost over SEK120 under the proposal.
Patrik Hildingsson, head of communications at Swedish Match, said that while Swedes are accustomed to high tax rates, the leaked EU proposal goes too far. He urged the Swedish government to make it clear to Brussels that Sweden alone regulates snus.
“Imagine if the EU decided to raise the tax on Italian Parma ham or German beer. This is basically the same thing,” Hildingsson was quoted as saying by Aftonbladet. “In the snus issue, the EU has chosen to disregard the principle of member state self-determination.”

“To dramatically increase the tax on snus will be a deadly blow to tobacco harm reduction and can make users go back to smoking.”
Bengt Wiberg, founder, EUforsnus
Meanwhile, snus advocates pointed to the health impact of snus, which is considerably less risky than other tobacco products.
“The Swedish Experience of snus has made Sweden almost smoke-free,” said Bengt Wiberg, founder of the EUforsnus international consumer group. “Daily smoking is now only 5 percent in Sweden as per the EU’s own Eurobarometer and thus Sweden has the lowest rate of all tobacco-caused cancers in Europe.
“To dramatically increase the tax on snus will be a deadly blow to tobacco harm reduction and can make users go back to smoking. I am sure the Swedish liberal/conservative government will even consider using its veto right within EU to stop this proposal.”
Finance Minister Elisabeth Svantesson indicated she would oppose the proposed tax hikes.
While snus is banned in the EU, Sweden obtained an exemption on cultural grounds when it joined the union in 1995. In the following years, however, the EU has made several attempts to restrict snus sales in Sweden, according to Aftonbladet.
The recent leaked proposal is scheduled to be published in early December. It must then be discussed and decided by the EU member states.
November 27, 2022
Netherlands Wants to Restrict Cigarette Sales to Tobacconists

Photo: jordi2r
The Dutch government plans to restrict sales of cigarettes to tobacconists within 10 years, reports the NL Times.
Supermarkets will have to stop selling tobacco products in 2024 while gas stations and convenience stores may continue selling them until 2030. Over the following two years, all nontobacconist stores will have to phase out tobacco sales.
Earlier this year, supermarket market leader Albert Heijn announced a trial with no tobacco sales at its Pijnacker store ahead of the 2024 ban. The pharmacy chain Kruidvat removed tobacco from sale in 2018, followed by Lidl Nederland.
The government also intends to further reduce the number of places where smoking is allowed. For example, it plans to ban smoking at playgrounds and sports parks from 2025.
In addition, the government wants to further increase the prices of tobacco products. Next year and in 2024, a pack of cigarettes will become €1.20 ($1.24) more expensive on average.
While cigarette prices in the Netherlands have risen steadily in recent years, they have remained stable in terms of affordability due to wage increases. On average, Dutch smokers consistently spent 2.5 percent of their annual income on cigarettes throughout that period.
The Dutch government aims for a “smoking-free generation” by 2040.
November 27, 2022
PMI Announces New Regional Structure
Photo: PMI
Philip Morris International has announced a new regional structure and related senior management changes.
“We are changing the company’s regional structure to further support the growth of our smoke-free business, reinforce consumer centricity and increase the speed of innovation and deployment—all in alignment with our ambition of becoming a majority smoke-free business by net revenues by 2025,” said PMI CEO Jacek Olczak in a statement.
“The new structure will also create new opportunities to further grow our senior talent, deepening the bench of leaders who will spearhead PMI’s progress toward a smoke-free future for the years to come. I am confident of the exceptional caliber and determination of our people and wish them the best in their new roles.”
By the end of January 2023, PMI will rearrange its operations in four regions, down from the current six, under the leadership of the following members of senior management:
Paul Riley, currently president of the East Asia and Australia region, will be appointed president of the East Asia, Australia and PMI duty-free region;
Frederic de Wilde, currently president of the European Union region, will be appointed president of the South and Southeast Asia, Commonwealth of Independent States (CIS), Middle East and Africa region;
Massimo Andolina, currently senior vice president of operations, will be appointed president of the Europe region; and
Deepak Mishra will continue as president of the Americas region.
Drago Azinovic, currently president of the Middle East and Africa and PMI duty-free region, will leave the organization after a transition period.
In addition, the following appointments will also take effect:
Marco Mariotti, currently president of the Eastern Europe region, will be appointed president of CIS, Central Asia and Israel, reporting to Frederic de Wilde;
Stacey Kennedy, currently president of the South and Southeast Asia region, will be appointed CEO of PMI’s U.S. business, reporting to Deepak Mishra; and
Scott Coutts, currently vice president of global manufacturing, will be appointed senior vice president of operations, succeeding Massimo Andolina and reporting to Jacek Olczak.
“We are changing the company’s regional structure to further support the growth of our smoke-free business, reinforce consumer centricity and increase the speed of innovation and deployment.”
Jacek Olczak, CEO, PMI
According to PMI, the new regional structure better aligns with the business strategy in the approximately 180 markets where the company’s products are sold. It is designed to accelerate smoke-free product growth in markets where IQOS already holds double-digit market shares while also driving the transition from cigarettes to smoke-free products in untapped markets, including the United States.
Furthermore, the new regional structure will support PMI’s efforts to broaden access to smoke-free products worldwide for those adults who would otherwise continue to smoke, including in low-income and middle-income markets, which the company aspires to account for at least half of the markets where its smoke-free products will be available by 2025. Each region will comprise individual markets as well as clusters of markets and will provide opportunities to accelerate career development within PMI’s diverse talent pipeline.
The company’s quarterly results reporting and related filings will reflect the new regional structure as of the first quarter of 2023.
November 26, 2022
Slovakia: Illegal Cigarette Factory Closed

Photo: Europol
Slovakian authorities uncovered an illegal cigarette factory while inspecting a poultry farm in Ubrez, reports the Slovak Spectator.
The Financial Administration detained 20 people from various Eastern European countries. Some had been charged for running illegal cigarette businesses before, according to police in Belgium, the Netherlands and Italy.
The Slovak operation, which produced pirated Marlboro, Richmond and Lambert & Butler cigarettes, had avoided an estimated €6.2 million ($6.42 million) in tax payments, according to authorities. In addition to millions of illegal cigarettes, law officials seized 32,000 kg of raw tobacco, production machinery and materials such as filters, tubes, adhesives, foils and packaging.
November 25, 2022