Category: Featured

  • PMI Seeks Dismissal of Zyn Lawsuit

    PMI Seeks Dismissal of Zyn Lawsuit

    Photo: PMI

    Philip Morris International and its Swedish Match North America subsidiary have asked a U.S. federal judge in Connecticut to dismiss a lawsuit claiming they falsely marketed nicotine pouches as safe and targeted adolescents, according to the USA Herald.

    In July, Florida resident Ethan Norris filed a court case claiming that Philip Morris and Swedish Match marketed Zyn nicotine pouches to adolescents by promoting them as a healthy alternative to tobacco. The lawsuit suggests the companies misled consumers by highlighting the pouches’ “food-grade flavorings” and “natural additives.” Norris further alleges that the companies employed social media influencers to target younger consumers.

    In its motion filed Sept. 24, PMI argues that the lawsuit is preempted by federal law as the labeling of its Zyn nicotine pouches is approved by the U.S. Food and Drug Administration.

    In a separate motion, Swedish Match North America made a similar argument and added that because Norris is a Florida resident who purchased and used the products in Florida, the case has no direct connection to Connecticut.

    PMI urged the court to dismiss the lawsuit or require Norris to provide a more specific complaint.

  • PMI Biggest Beneficiary of HTP Tax Cuts: Critics

    PMI Biggest Beneficiary of HTP Tax Cuts: Critics

    Image: Comugnero Silvana

    Philip Morris International would be the biggest beneficiary of New Zealand’s tax cuts for heated-tobacco products (HTPs), critics told Associate Health Minister Casey Costello, according to RNZ.

    In July, Costello announced a 50 percent cut to HTP excise taxes, arguing that doing so would encourage cigarette smokers to migrate to less unhealthy nicotine products.

    The government of New Zealand will set aside NZD216 million ($127.39 million) to pay for the tax reductions.  

    According to critics, the only commercial beneficiary of the tobacco tax cuts is PMI, which is the sole supplier of HTPs in New Zealand.

    In briefings to Costello, treasury officials questioned whether PMI would pass on the excise cut to consumers given its dominance in the market, according to documents obtained by RNZ under the Official Information Act.

    “It may be that the reduction in excise taxes is not passed through to consumers in price reductions but rather is retained by the sole importer,” the officials warned.

    In response to questions about her motivations, Costello stated that she had no connections to the tobacco business. “It’s completely wrong to suggest that the tobacco industry has anything to do with these policies, which are aimed at helping people quit smoking,” she was quoted as saying.

    Costello has repeatedly said the excise tax cut for HTPs is designed to lower smoking rates by offering alternatives for people struggling to quit. She has claimed that “HTPs have a similar risk profile to vapes.”

    Treasury officials reportedly cited evidence that HTPs are more harmful than vaping.

  • Europe OKs French Ban on Disposables

    Europe OKs French Ban on Disposables

    Photo: justoomm

    The European Commission on Sept. 25 approved France’s bid to ban disposable vapes, reports the Connexion.

    France started the process of banning single-use e-cigarettes in December 2023, citing concerns about youth uptake and environmental pollution. Disposable vapes contain microplastics and chemical substances and are generally powered by nonrechargeable, nonrecyclable lithium batteries.

    The National Assembly’s proposed ban gained approval in the French Senate in February 2024.

    Europe’s validation was the final step in making the ban possible.

    “This is a great victory for the environment and for the health of our children, who are the main targets of these marketing campaigns,” Francesca Pasquini, co-writer of the bill, was quoted as saying.

    Lawmakers have yet to determine when the legislation will take force. The next step is for senators to vote definitively on a ban before it is formally put into effect.

    France will be joining Belgium, where the sale of disposable vapes will be illegal from Jan. 1, 2025.

    According to an investigation by the French anti-smoking federation ACT, 15 percent of teenagers aged between 13 and 16 have used e-cigarettes.

  • Atlas to Increase Air-Cured Production

    Atlas to Increase Air-Cured Production

    Photo: Taco Tuinstra

    Atlas Agri Zimbabwe plans to significantly increase its air-cured tobacco hectarage this season.

    According to The Herald, the sole contractor of this variety in Zimbabwe intends to grow 100 ha in 2024–2025.

    “So far, we have engaged over 150 farmers to produce the crop on over 100 hectares, up from last year’s 10 hectares that were done by 17 farmers,” Atlas Agri CEO Alex Mackay was quoted as saying.

    According to Mackay, many of the farmers who participated in the inaugural test expressed satisfaction with their sales. The top performing grower delivered 608 kg and received an average price of USD3.10 per kilogram.

    The success of the project has attracted more farmers.

    “We have seen over 300 new farmers applying for contracts, expanding our reach to Plum Tree, Fig Tree and the wider Mangwe region,” said Mackay. “Looking ahead, we have several initiatives in the pipeline aimed at enhancing yield and quality.”

    Atlas Agri aims to boost returns for its farmers while protecting the environment. Instead of relying on wood for curing fuel, the company’s contracted farmers rely entirely on natural elements.

    With the support and guidance from Agritex and the Tobacco Industry and Marketing Board (TIMB), the company hopes to benefit both farmers and the economy in line with the government’s Tobacco Value Chain Transformation Plan, according to Mackay.

    TIMB acting CEO Emmanuel Matsvaire noted that the cost of producing air-cured tobacco is relatively low at around USD400 per hectare.

  • Brazil Mulls Legalizing the Vaping Business

    Brazil Mulls Legalizing the Vaping Business

    Image: Patricia Fragoso

    Brazilian lawmakers are considering a proposal to legalize the vaping business, reports JP.

    E-cigarettes are currently prohibited in Brazil, but they are widely available throughout the nation. To restore order to the market, Senator Soraya Thronicke has proposed legislation that would regulate the production, commercialization, importation and use of vaping devices, as well as establish rules for control, inspection and advertising.

    Among other measures, the proposed legislation would require vaping companies to register their products with the health regulatory agency, the federal revenue service and other agencies. It also prescribes fines ranging from BRL20,000 ($3,678) to BRL10 million for those who sell vapes to buyers under 18 years of age.

    Proponents see regulation as a way to combat the illegal market and protect the population, especially youth. According to the Brazilian Institute of Geography and Statistics, 22.7 percent of Brazilian teenagers have experimented with electronic cigarettes.

    Lauro Anhezini Jr, a board member of the Brazilian tobacco industry association Abifumo, believes the ban is ineffective because it enables suppliers to skirt quality standards. “What we have in Brazil today are illegal products, without any type of oversight, and they pose a risk to consumers’ health, especially teenagers,” he was quoted as saying.

    Anhezini cited the example of the United States, where strict regulations have reduced youth consumption. “In the United States, after the creation of clear rules, the use of electronic cigarettes by teenagers dropped from 27.5 percent in 2018 to 5.9 percent in 2024. This demonstrates how regulation can bring a safer and more controlled scenario for consumers,” he said.

    According to Anhezini, regulation would allow for greater control over product quality, reducing health risks and especially protecting young Brazilians who have easy access to illegal products.

    The discussion also involves economic considerations. The federal revenue service estimates that controlled legalization of e-cigarettes could generate up to BRL700 million in annual revenue.

    However, the federal highway police warns that legalization will not necessarily reduce smuggling, citing the rampant illicit trade in the regulated combustible cigarette market.

    The bill is currently in the Senate’s Economic Affairs Committee and expected to return to the agenda in November.

  • Philip Morris to Invest in Serbia

    Philip Morris to Invest in Serbia

    Image: epic

    Philip Morris International plans to invest €100 million ($111.4 million) in Serbia, reports SeeNews, citing the country’s president Aleksandar Vucic.

    “Such foreign investments are decisive for the development of the economy and business and further strengthen the position of our country as a major partner in innovation and modern technologies,” Vucic said Sept. 23 following a meeting with PMI CEO Jacek Olczak in New York.

    PMI operates in Serbia through two subsidiaries, Philip Morris Operations and Philip Morris Services.

    In 2003, PMI acquired Serbia’s largest tobacco factory, DIN Fabrika Duvana in Nis. To date the multinational has since invested more than $800 million in its Serbian operations.

  • GVA Reiterates Vow to Helping Smokers Quit

    GVA Reiterates Vow to Helping Smokers Quit

    Photo: GVA

    One year after its founding, the Global Vape Alliance (GVA) met in Dortmund, Germany, to renew its commitment helping smokers quit cigarettes and improving their health.

    With members from the U.S., Europe and China, the GVA reviewed the regulatory and business environment in their respective regions and hosted a networking event for over 200 industry leaders and CEOs that were attending the InterTabac exhibition in Dortmund at the weekend.

    The GVA supports consumers in switching from harmful cigarettes to less harmful vaping products, aiding global public health efforts. The alliance focuses on youth protection through responsible marketing. It strives to balance accessible alternatives for smokers with ecological concerns, helping evolve tobacco control policies.

    The GVA said it will continue to cooperate on five critical issues: regulation compliance, industry promotion, public health, environment protection and the engagement against the black market.

  • Zimbabwe Firms Seek Help Entering Foreign Markets

    Zimbabwe Firms Seek Help Entering Foreign Markets

    Photo: Taco Tuinstra

    Representatives of indigenous tobacco companies have asked the Zimbabwean government to help them secure export markets to widen their revenue base, reports The Herald.

    Company officials met separately with the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Fisheries and Rural Resettlement chaired by Felix Maburutse on Sept. 20.

    Richard Machingura, head of operations and agronomy at Norton Leaf Tobacco, said indigenous-owned companies in the tobacco sector were struggling to access foreign markets and would benefit from assistance from the Tobacco Industry and Marketing Board, which regulates the domestic industry.  

    “As tobacco companies, we are also facing some challenges in the markets,” he was quoted as saying. “You will find that most of our tobacco locally, we are just doing the intermediate trading. So, we have a challenge of markets where we are not really able to export our tobacco, and this is affecting the growth of our industry,” he said.

    Zimbabwe’s tobacco export earnings increased 138 percent year-on-year to reach $436 million in the first quarter of this year.

    Traditionally a leading exporter of flue-cured Virginia, the country aims to extract more revenue from the business by moving to higher value products, such as cigarettes.

    In 2021, the government adopted the tobacco value chain transformation plan, which seeks to build a $5 billion industry by 2025.

  • New Smoking Rules Take Effect Next Month

    New Smoking Rules Take Effect Next Month

    Malaysia’s new tobacco law will take effect Oct. 1, reports Malay Mail.

    The law covers regulations related to the registration, sale, packaging and labeling of smoking products along with restrictions on smoking in public places.

    The new legislation also covers electronic cigarettes.

    The law seeks to prohibit the sale and purchase of tobacco products, smoking materials and tobacco substitutes to minors as well as the provision of any smoking-related services to those under the age of 18.

    Health groups have repeatedly urged the government to expedite the enforcement of new law, especially following a controversial decision last year by former Health Minister Zaliha Mustafa to remove liquid nicotine from the poisons list.

  • Farmers Scramble to Save Leaf Ahead of Storm

    Farmers Scramble to Save Leaf Ahead of Storm

    Photo: sabino.parente

    Tobacco farmers in Cuba scrambled to secure thousands of tons of cigar tobacco ahead of Tropical Storm Helene, which was expected to unleash mudslides and flooding on the island, reports Reuters.

    Helene was churning about 277 km south of the western tip of Cuba as it barreled northwest, with maximum sustained winds of 72 kph, the Miami-based National Hurricane Center said Sept. 24.

    Forecasters predict Helene will strengthen quickly over the warm waters of the Gulf of Mexico to become a major hurricane, packing winds as high as 185 kph.

    A hurricane watch and tropical storm warnings were in effect across the western third of Cuba while the capital, Havana, was expected to see heavy rain and more moderate winds.

    The storm is expected to move north toward the U.S. later in the week over parts of Georgia, Tennessee and Kentucky, bringing isolated flash flooding and urban flooding, the U.S. National Weather Service said.