Category: Featured

  • Zimbabwe: More Than 12,500 Ha of Tobacco Planted

    Zimbabwe: More Than 12,500 Ha of Tobacco Planted

    Photo: YanaKho

    Zimbabwean tobacco growers have planted 2,107 ha of dryland tobacco to date this season, reports The Herald, citing data from the Tobacco Industry and Marketing Board (TIMB).

    According to TIMB spokesperson Chelesani Tsarwe, 133,724 farmers have registered to grow tobacco this season compared to 111,063 during the same period last year.

    Zimbabwe Commercial Farmers Union President Shadreck Makombe told The Herald that tobacco planting was progressing well.

    “Dry land tobacco farmers have started planting especially in those areas where the rains fell,” he said. “We will see planting activities intensifying, especially as we go forward from next week onward.”

    The area put under irrigated tobacco was 10,483 ha as of Nov. 1, bringing the total hectarage under tobacco to 12,590 ha.

    Despite efforts to diversify into other products, tobacco remains one of Zimbabwe’s greatest generators of foreign currency.

    During the 2022 tobacco marketing season, Zimbabwe earned USD650 million from tobacco sales, up from USD589 million the previous year.

  • KAC Solicits Scholarship Applications

    KAC Solicits Scholarship Applications

    Knowledge-Action-Change (KAC), with the support of a grant from the Foundation for a Smoke-Free World, is looking for the sixth cohort of scholars for its Tobacco Harm Reduction Scholarship Program (THRSP).

    The application period closes on Nov. 30. Successful candidates will receive a 12-month bespoke mentoring program to undertake a THR-related project of their own design plus $10,000 in financial support. On completion of the scholarship, graduates of the THRSP potentially have access to up to a further three years of funded support from KAC.

    The THRSP was launched to increase research and practice capacity in tobacco harm reduction in target locations and populations where current activities and resources are limited. The THRSP has a particular focus on low-income and middle-income countries (LMICs), where the need for new approaches to tobacco-related harms are especially acute. It aims to introduce new thinkers, new ideas and new methods to tobacco harm reduction as well as increasing the use of social media and new technologies to disseminate accurate information about the potential for safer nicotine products to reduce the global number of smoking-related deaths, which currently total 8 million every year.

    The THRSP achieves its goals in a number of ways. Applicants to the program must devise a project that will improve understanding of, or communication about, tobacco harm reduction appropriate for their country, region or personal area of expertise. Current and former scholars have published original research in peer-reviewed scientific journals, created national and international tobacco harm reduction networks, developed toolkits for smoking cessation or healthcare practitioners, and produced new media resources ranging from articles and films to radio shows and podcasts.

    “The impact of the program to date has been immense,” said THRSP manager Jon Derricott. “It has helped to shape and challenge thinking, practice and policy in many areas of the world, particularly in LMICs. The biggest influence is yet to come to full fruition, but this will be a growing cohort of well-informed and highly capable THR professionals who will continue to speak up for the benefits of THR and robustly challenge misinformation wherever it occurs. This really matters because at the root of all this is people’s right to a healthy life, even if they continue to use nicotine. THR enables that goal to be an attainable reality.”

    “Being part of the THRSP as a scholar, a mentor and then becoming the THR scholarship manager has been a life-changing journey,” said Chimwemwe Ngoma, a graduate of the program from Malawi. “The THRSP has opened new and exciting doors for me, and I am confident that many people have also benefited through what I have been able to offer. This has been the biggest opportunity for me to give back to the community and impact lives.”

    For more information about the program, visit https://thrsp.net.

  • Ukraine: Illicit Tobacco Sales Hit Record High

    Ukraine: Illicit Tobacco Sales Hit Record High

    Photo: Ivan Semenovych

    The share of illicit tobacco products in Ukraine reached its highest level since the country’s independence in 1991, reports Interfax Ukraine.

    According to an October study by the Kantar Ukraine Institute, illicit products accounted for 21.5 percent of the Ukrainian tobacco market in August 2022, up 5 percentage points over the average annual indicator for 2021.

    The survey shows that Ukrainian smokers bought 8.46 billion illegal cigarettes since the beginning of 2022, equaling the volumes for the whole of 2021, and caused the government to miss UAH20.65 billion ($558.71 million) in tobacco tax payments.

    Kantar Ukraine specified that fake cigarettes in Ukraine accounted for 8 percent of Ukraine’s tobacco market in August 2022 compared with 6.6 percent in August 2021.

  • Flavors Detected in ‘Tobacco’ Liquids

    Flavors Detected in ‘Tobacco’ Liquids

    Photo: laboko

    E-liquids marketed as tobacco-flavored contain higher levels of sweet and fruit-flavored chemicals today than they did a decade ago, according to a new study published on Nov. 3 in a special supplement to Tobacco Control.

    This recent development coincides with the U.S. Food and Drug Administration’s ban on the sale of flavors other than menthol and tobacco in cartridge-based e-cigarettes.

    To find out if e-cigarettes marketed as “tobacco-flavored” contained sweet and fruit flavor chemicals, researchers drew on an extensive database of e-liquid and aerosol flavor chemicals to identify any trends and changes in chemical composition and levels since 2010–2011.

    They compared the number and amount of flavor chemicals in 63 “tobacco-flavored” e-cigarette refill fluids purchased between 2011 and 2019 and two popular pod-style e-cigarette brands—Juul and Puff.

    They found that tobacco-flavored products purchased in 2010 and 2011 had very few flavor chemicals; overall, the levels of which were generally very low.

    Nearly two-thirds (63 percent) of the refill fluids bought before 2019 had levels of flavor chemicals below 2 mg/mL, and most (84 percent) were below 5 mg/mL.

    But the total number and level of flavor chemicals in “tobacco-flavored” refill fluids purchased in 2019 and in Puff Bar tobacco e-cigarettes were higher than expected.

    Among the 13 refill products bought in 2019, more than half (54 percent) had total flavor chemical levels above 10 mg/mL. Products with total flavor chemicals of more than 10 mg/mL contained one to five dominant flavor chemicals (each more than 1 mg/mL). 

    The five most frequently used flavor chemicals in “tobacco-flavored” e-liquids were fruity and caramellic: ethyl maltol (sweet or caramel, 60 percent); corylone (caramellic, maple, 44 percent); menthol (33 percent); vanillin (25 percent); maltol and triacetin (fruity, creamy, 24 percent).

    Nine sweet and fruit flavor chemicals, used mainly in products bought in 2016 and 2019, were at levels above 2 mg/mL. 

    The flavor chemical levels for Juul Classic and Juul Virginia were below 0.35 mg/mL while levels of the individual chemicals were, in most cases, equal to, or less than, 0.05 mg/mL.

    Different flavor chemicals were used in the classic and Virginia products, suggesting these were added intentionally to create distinct tastes for each product, according to the researchers.

    Puff “Tobacco,” on the other hand, had 27 different flavor chemicals adding up to a total of 34.3 mg/mL. Individual chemicals ranged from 0.03 mg/mL to 15 mg/mL.

    Four flavor chemicals (vanillin, ethyl maltol, ethyl vanillin and corylone), which were the highest (range 2.07 mg/mL to 15 mg/mL), are typically used in sweet-flavored e-cigarette products, such as Dewberry Cream, which is popular with young vapers, noted the researchers.

    For the dominant flavor chemicals found in both brands, levels of vanillin were 300 times higher in Puff than in Juul while ethyl maltol was 239 times higher and corylone was 41 times higher.

    The total number of flavor chemicals used in Puff Bar tobacco was greater than those found in nearly all (94 percent) the refill fluids evaluated.

    “Concern has been raised previously about the safety of flavor chemicals when inhaled at these high concentrations,” the researchers noted.

    “Although these particular flavors are generally regarded as safe by the Flavor Extract Manufacturers Association (FEMA) for ingestion, FEMA has not evaluated them for inhalation toxicity.”

    In a press note, the researchers said there were two reasons for the FDA to identify and quantify flavor chemicals before authorizing premarket tobacco product applications (PMTAs). “First, flavor chemicals are often used in e-liquids without safety data at concentrations much higher than those found in other consumer products,” they wrote. “Second, our data show that e-cigarette manufacturers are manipulating e-liquid formulations apparently to circumvent flavor chemical regulations.”

  • Industry Braces for California Flavor Ballot

    Industry Braces for California Flavor Ballot

    Photo: PX Media

    The nicotine business is bracing for a likely “yes” vote in the Nov. 8 ballot on California’s flavored products ban.

    In 2020, California lawmakers passed a ban on all flavored nicotine products—including vapes and cigarettes—except in hookah, loose leaf tobacco (for pipes) and premium cigars. Menthol products are also covered by the legislation.

    Opponents of the ban collected more than 1 million signatures and forced the state to hold a referendum on the ban. Originally scheduled to take effect Jan. 1, 2021, the legislation was then suspended until the Nov. 8 vote.

    If voters uphold the legislation next week, California will join a number of states that have already prohibited the sale of at least some flavored nicotine products. Massachusetts banned the sale of flavored nicotine products (including menthol) in 2019; New Jersey, Rhode Island and New York have all banned flavored vaping products.

    California’s proposed law is unique in that it also bars so-called “flavored enhancers,” preventing a person from buying flavored non-nicotine e-liquid and adding it to flavorless nicotine at home.

    Observers expect the California legislation to be approved.

    An Oct. 4 poll from the Berkeley Institute of Governmental Studies found that 57 percent of respondents planned to support the flavor ban, whereas just 31 percent would vote “no,” with only 12 percent looking to be undecided.

    Supporters of the ban appear to have outspent opponents by a significant margin. By mid-October, the billionaire anti-smoking and anti-vaping activist Michael Bloomberg had provided $15.3 million of the $17.3 million raised by the committee in favor of the ban, according to the San Francisco Chronicle. By contrast, the opposition had raised just over $2 million, almost entirely comprised of donations from Philip Morris USA ($1.2 million) and R.J. Reynolds ($743,000).

    Critics worry that, if passed, the ban will spawn a considerable illicit market as it appears to have done in states that have similar restrictions in place. Massachusetts’ ban on tobacco flavors, for example, appears to have encouraged smokers and vapers to obtain their products in neighboring states.

  • Acceptance Period for Swedish Match Offer Expires Today

    Acceptance Period for Swedish Match Offer Expires Today

    Photo: Swedish Match

    Shareholders of Swedish Match must decide today whether to tender their shares to Philip Morris International.

    In May, PMI bid about $16 billion for Swedish Match. Swedish Match’s board of directors recommended shareholders accept the offer, but some investors, including Elliott Management Corp., objected, saying the bid undervalues their firm.

    In October, PMI increased the price of its bid to SEK116 per share from the SEK106 per share offered in May. Swedish Match’s board of directors advised shareholders to accept PMI’s revised offer.

    Under Swedish law, PMI needs 90 percent of shareholders to agree to the deal in order to get full control over the company.

    Earlier this week, Framtiden Partnerships said it would not accept PMI’s sweetened offer, according to Reuters.

    The investor, which owns nearly 1 percent of the Swedish nicotine products manufacturer, believes Swedish Match is better off as an independent company. Framtiden managing member Dan Juran estimates Swedish Match to be worth close to SEK200 per share.

    Framtiden said it would urge Swedish Match management to initiate a share buyback and potentially a special dividend if the deal does not go through.

    “As we wrote in our white paper, there is incredible long-term value in this asset, but we also think that there is great value to be realized in the short term as well,” Chris Anderson, a partner in Framtiden, was quoted as saying by Reuters, adding that a planned U.S. cigar business spinoff will also provide additional shareholder value.

    On Oct. 28, Elliott Management Corp. raised its stake in Swedish Match to over 10 percent—enough to scupper the deal if it opposed the bid.

  • Smoking Prevalence Halved Since 2009

    Smoking Prevalence Halved Since 2009

    Photo: Comugnero Silvana

    The smoking prevalence in Russia nearly halved between 2009 and 2021, reports Interfax, citing Health Minister Mikhail Murashko.

    “Tobacco consumption among adults went down from 39.5 percent in 2009 to 20 percent in 2021,” Murashko told participants in a recent public health forum.

    The news comes as multinationals are retreating from the Russian cigarette market in response to Moscow’s military assault on Ukraine.

    Following the Feb. 24 invasion, international cigarette manufacturers announced they would end their operations in Russia, but retreating from such a major market is easier said than done. Tobacco companies have had to carefully navigate shifting regulations and avoid missteps that could prompt the government to seize the business, for example—all the while trying to protect employees from becoming targets for arrest.

    Earlier this year, Philip Morris International CEO Jacek Olczak described the process as “bloody complex.” In a July interview, he said the company was unlikely to be able to leave Russia before the end of 2022.

    An analysis of Russian Treasury figures conducted by The Telegraph revealed that the leading international cigarette manufacturers have provided the Russian government with at least $7.25 billion in additional income through tax payments since Feb. 24.

    Russia is the world’s fourth-largest cigarette market. Prior to the war, Japan Tobacco International led the market with a 36.7 percent share, followed by PMI (31.7 percent) and BAT (23.5 percent), according to Cowen & Co.

  • Half-Year Revenue and Income Up at Universal

    Half-Year Revenue and Income Up at Universal

    Photo: Taco Tuinstra

    Universal Corp. posted sales and other operating revenue of $1.08 billion for the first half of 2022, up 34 percent over that reported in the comparable 2021 period. Reported operating income increased 27 percent to $51.2 million. Sales and other operating revenues from the tobacco business were $918.1 million compared with $690.6 million in the first six months of 2021. Tobacco operations contributed $41.9 million in operating income, 17 percent more than in the comparable 2021 period.

    “Demand for both our tobacco and plant-based ingredients products remains very strong, and we are excited about how our fiscal year 2023 is developing,” said Universal Corp. Chairman, President and CEO George C. Freeman III in a statement.

    “We are seeing improvement in shipping availability, particularly in Brazil, where we were able to ship large amounts of carryover tobacco in both the six months and quarter ended Sept. 30, 2022. We also remain very pleased with our strategic investment in our plant-based ingredients platform. Our Ingredients Operations segment diversifies our earnings and delivered higher results driven by higher sales in both the six months and quarter ended Sept. 30, 2022, compared to the same periods in the prior fiscal year.

    “We believe we are through our peak seasonal working capital requirements for fiscal year 2023, and we expect a considerable reduction in debt levels over the next two fiscal quarters. We have already seen significant working capital receipts in October 2022. Our tobacco shipments, which are weighted to the second half of our fiscal year, should enable us to reduce our debt levels from the elevated Sept. 30, 2022, levels as payments are received from our customers.”

    All types of leaf tobacco, but particularly burley, are currently in an undersupply position, according to Freeman. By the end of September, Universal’s tobacco inventories were nearly 90 percent committed for sale.

  • KT&G Net Profit Jumps by a Third

    KT&G Net Profit Jumps by a Third

    Photo: KT&G

    KT&G’s quarterly net profit jumped 29 percent from a year earlier on increased exports and a strong dollar, reports the Yonhap News Agency.

    Net profit for the three months ended in September rose to KRW463.14 billion ($325 million) from KRW359.58 billion during the same period of last year, the company said in a statement

    According to the company, the bottom line was boosted by increased sales of heat-not-burn products in the domestic market and increased overseas sales amid a weak won against the dollar.

    The dollar rose to an average of KRW1,338 in the third quarter from KRW1,157 a year earlier, according to the Bank of Korea. 

    Operating profit fell 2.7 percent to KRW405.61 billion during the quarter from KRW417.03 billion a year ago. Sales were up 8.5 percent to KRW1.62 trillion from KRW1.49 trillion during the cited period. 

    Domestically, KT&G sold 11.05 billion cigarettes in the third quarter, down 0.4 percent from a year earlier. The company held a 65 percent share of the local cigarette market. 

    Overseas sales jumped 30 percent to 12.2 billion cigarettes in the September quarter from 9.4 billion a year ago, driven by rising demand from emerging markets. 

    KT&G earns 90 percent of its sales from cigarettes and 10 percent from heat-not-burn products.

    From January to September, net income climbed 21 percent to KRW1.06 trillion from KRW878.58 billion in the same period of last year. 

  • Indonesia: President Approves Tobacco Tax Hikes

    Indonesia: President Approves Tobacco Tax Hikes

    Photo: Taco Tuinstra

    Indonesian President Joko “Jokowi” Widodo approved a plan to increase tobacco taxes by 10 percent in 2023 and 10 percent in 2024, reports Tempo. The objective is to reduce the number of underage smokers.

    “In today’s decision, the president has agreed to increase cigarette excise tax by 10 percent for [the] 2023–2024 period,” said Finance Minister Sri Mulyani after meeting at the Bogor Presidential Palace, West Java, on Nov. 3, 2022. 

    The increase in excise will apply to machine-made “white” cigarettes, machine-made kretek cigarettes and sigaret kretek pangan products. 

    Indonesia has struggled with high rates of underage smoking. The government aims to reduce smoking prevalence for 10-year-olds to 18-year-olds to 8.7 percent.  

    Cigarettes also represent the second-largest household expense—just below rice—in Indonesia.