Category: Featured

Sales up at Swedish Match

Photo: Swedish Match
Sales of Swedish Match increased by 21 percent to SEK5.78 billion ($525.77 million) for the third quarter of 2022. In local currencies, group sales increased by 5 percent. The group’s operating profit increased to SEK2.4 billion from SEK2.08 billion in the comparable 2021 quarter.
Operating profit from product segments increased by 15 percent to SEK2.4 billion. In local currencies, operating profit from product segments declined by 1 percent for the third quarter.
In local currencies, operating profit grew by 12 percent for the smoke-free product segment. For the cigars product segment, operating profit declined, impacted by lower volumes. The lights product segment faced particularly tough conditions and reported a steep decline in operating profit.
Lars Dahlgren
Profit after tax increased to SEK1.78 billion from SEK1.54 billion in the comparable 2021 quarter.
Swedish Match attributed its performance to continued momentum for the U.S. smoke-free business and the strong U.S. dollar.
“Our core smoke-free business, and especially our nicotine pouch businesses, continued to demonstrate strength and attractive prospects, both commercially and from a tobacco harm reduction perspective,” said Swedish Match CEO Lars Dahlgren in a statement. “While we experienced some challenges in the quarter, underlying developments in several of our businesses were stronger than what the reported financials portrayed.”
October 31, 2022
Comments in FDA Assessment Suggest Agency in Disarray

Photo: BillionPhotos.com
The U.S. Food and Drug Administration is in disarray and influenced by outside forces rather than scientific research, according to several comments submitted to the Reagan-Udall assessment of the performance of the FDA’s Center for Tobacco Products (CTP).
In July, the FDA commissioned an independent review of the agency’s food and tobacco programs following months of criticism over its handling of a baby formula shortage and e-cigarette reviews. FDA Commissioner Robert Califf chose the nonprofit Reagan-Udall Foundation, a nongovernmental research group created by Congress to support the FDA’s work, to perform the review.
As part of its work, the Reagan-Udall Foundation has been soliciting feedback from stakeholders.
Many of the comments paint a picture of an agency struggling to fulfill its mandate.
One commenter said that reviewers of premarket tobacco product applications (PMTAs) in the CTP Office of Science lack the autonomy to exercise “best scientific practices” in their reviews of PMTAs.
“Scientific disagreement is frowned upon, if not entirely suppressed, and punished through various backhanded methods (e.g., lack of assignments, projects and other opportunities that are needed for career development/promotion),” this person wrote.
“In some divisions (e.g., Division of Nonclinical Science), leadership pushes a ‘gotta get ’em’ mentality onto staff, which is unsupportive of a reviewer’s fundamental duty to provide an unbiased review using the best available science.”
Another commenter claims that arbitrary and politically driven timelines set externally (by a judge for example) are driving reviews as opposed to allowing for a thorough scientific review. “When errors are found, the CTP reviewers are blamed when in fact the lack of adequate time to complete the reviews are at fault.
“Staff are burned out and constantly told to do more in less time and blamed for not meeting insane deadlines,” the commenter wrote. “In cases where reviews are finished and scientific decisions are made, they are also overruled by political agendas and pushed to change decisions.”
To read all comments, please visit the Reagan-Udall Foundation’s stakeholder portal.
October 31, 2022
Elliot Raises Stake in Swedish Match Again

Photo: Swedish Match
Elliott Management Corp. raised its stake in Swedish Match to over 10 percent on Oct. 28. The move came one week before the Nov. 4 deadline when shareholders must decide whether to accept Philip Morris International’s takeover bid for the Swedish company.
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.
Earlier this month, PMI increased the price of its bid to SEK116 ($10.34) 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.
By increasing its stake to 10.5 percent from 7.25 percent previously, Elliott could scupper the deal if it rejects the offer. When it announced its sweetened bid, PMI indicated it would not further increase the price of its revised offer.
PMI also has the option to reduce the acceptance threshold and take a majority stake in order to prevent the bid from failing.
Speaking to Reuters before Elliott disclosed the higher stake, Swedish Match CEO Lars Dahlgren said that he believed the company could thrive by itself or together with Philip Morris.
“I believe we have exciting prospects as a standalone company, but I see exciting opportunities with a potential combination,” he said.
October 31, 2022
Zimbabwe: Tobacco Sales Hit $650 Million

Photo: Taco Tuinstra
Zimbabwe earned $650 million during the 2022 tobacco marketing season, which closed Oct. 21, reports All Africa. The figure was up from $589 million last year.
In a statement announcing the end of the 2022 tobacco marketing season, the Tobacco Industry Marketing Board (TIMB) expressed delight with improved sales volumes and deliveries to auction floors.
The value of sales was up 10.3 percent over last year while volume increased 0.75 percent, according to the regulatory body.
As of Oct. 21, 2022, a total of 212,711,370 kg of tobacco had been sold compared with 211,100,219 kg sold during the same period in 2021.
“The increase in tobacco sold as well as the value is evidence of our efforts as an industry to establish a $5 billion industry by 2025,” said the TIMB.
October 31, 2022
Imperial Launches Blu 2.0 in U.K.

Photo: Imperial Brands
Imperial Brands has launched Blu 2.0, a new vaping device that replaces its existing Myblu system, in the U.K., reports The Grocer.
According to Imperial Brands, the new product offers a smoother and richer vaping experience due to its ceramic heating pod technology, which replaces the previously used cotton wick option. It also features a longer-lasting battery and bigger 1.9 mL volume liquid pods.
The new device also comes with a magnetic lock feature and “power tap,” which enables users to easily check the battery level.
Imperial has also launched a new range of six flavored liquids for use with the system: Golden Tobacco, Polar Menthol, Fresh Mint, Berry Mix, Blueberry Ice and Fresh Mango. All come in 9 mg and 18 mg nicotine strength variants.
“Through the launch of Blu 2.0, we’ve developed a product that looks better, tastes better and lasts longer than before to provide consumers with the next-generation vape product they’re looking for,” said Tom Gully, Imperial Tobacco’s head of consumer marketing for the U.K. and Ireland.
October 31, 2022
New Leaders at ITGA

Photo: jirsak
The International Tobacco Growers’ Association (ITGA) has named José Javier Aranda as its new president and Adam Gordon Strong as its new vice president, the organization announced in a press note.
The appointments came during the group’s annual general meeting Oct. 26–29 in Castelo Blanco, Portugal.
The gathering was the first in-person annual meeting in two years. The previous two events were held online due to the Covid-19 pandemic.
During the meeting, growers called for greater inclusion in consultations shaping the future of the sector, such as those conducted by the Framework Convention on Tobacco Control.
While tobacco prices have generally been up due to crop shortages in key markets, growers around the world have had to contend with skyrocketing inflation and rapidly rising costs of production.
October 31, 2022
U.K. Urged to Ban Pouch Sales to Minors

Photo: Andrii
U.K. health campaigners are calling for the closure of a loophole that allows nicotine pouches to be sold to under-18s, reports the BBC.
Nicotine pouches, which are made without tobacco, are not regulated by rules that cover tobacco products, vaping products or medical products in the U.K. As a result, there are no age restrictions on sales.
Action on Smoking and Health (ASH) says the lack of rules is a “Wild West.”
Leading manufacturers, however, have introduced their own restrictions on age of sale and warnings on packaging.
In a recent ASH survey of 13,000 people, about one in 25 said they had tried nicotine pouches, and awareness was highest among 18-year-olds to 24-year-olds, with 45 percent having heard of them.
Leonie Brose, reader in nicotine research at King’s College London, agreed the current regulation should be reviewed.
“If you are a smoker, then moving to something else is a good idea, but if you’ve never smoked, it’s not a good idea to take up nicotine because it is addictive and may produce a dependence,” she said.
Japan Tobacco International, which sells Nordic Spirit nicotine pouches, welcomed the call for more regulation.
Spokeswoman Nicky Small told the BBC that the company has spearheaded a self-regulation framework that governs the marketing of the product and limits access to over-18s.
October 31, 2022
BAT to Close Boncourt Factory

Photo: BAT
BAT will close its Boncourt cigarette factory in Switzerland and move production elsewhere in Europe, reports SWI.
The factory employs more than 200 people, around half of them cross-border workers from France.
The closure will not affect BAT’s Lausanne office, which employs more than 100 other staff.
Boncourt mayor Lionel Maître described the decision as “a shock, a disappointment, a feeling of desperation and a mess.”
The Boncourt factory was founded by the Burrus family in 1814 and was taken over by Rothmans International in 1996 before merging with BAT three years later. In 1887, the site started producing Parisienne, which is the second best-selling cigarette brand in Switzerland.
In 2014, BAT closed a research and development facility in Boncourt with the loss of around 15 jobs.
October 31, 2022
Robust Pricing Boosts JT Results

Masamichi Terabatake (Photo: JT Group)
The JT Group reported revenue of ¥2 trillion ($13.5 billion) for the first nine months of 2022, up 13.7 percent over the comparable 2021 period.
Core revenue at constant currency exchange rates increased by 4.1 percent to ¥1.77 trillion. Adjusted operating profit at constant currency increased by 6.5 percent to ¥78.4 billion. On a reported basis, adjusted operating profit increased by 17.5 percent to ¥637.8 billion. Operating profit increased by 20.5 percent to ¥579.3 billion while profit increased by 19.2 percent to ¥403.8 billion.
“In the nine-month results, the JT Group delivered a strong performance, mainly driven by robust pricing in the tobacco business,” said JT Group President and CEO Masamichi Terabatake in a statement. “We are also encouraged by the Ploom X volume and share performance in Japan. We have launched Ploom X in the U.K. starting in London. We will accelerate Ploom X launches internationally from 2023.”
Terabatake said he had high expectations of the recently announced joint venture with Altria Group to market and commercialize heated-tobacco sticks products in the U.S. “I strongly believe that this cooperation will increase the global harm reduction possibilities for adult consumers and drive incremental value for JT and Altria,” he said.
“We have revised our 2022 full-year guidance upward, driven by business momentum as well as favorable currency movements against the Japanese yen,” said Terabatake. “Following the upward revisions of our guidance, we are pleased to share our plan to increase our annual dividend guidance by ¥38 to ¥188.”
October 31, 2022
Altria Reports Quarterly Results

Photo: Casimiro
Altria Group reported its 2022 third-quarter and nine-months business results and narrowed its guidance for 2022 full-year adjusted diluted earnings per share (EPS).
“This is an exciting moment on our journey toward ‘Moving Beyond Smoking,’” said Billy Gifford, Altria’s CEO, in a statement. “Our tobacco businesses remained resilient during the first nine months of the year, and we continued to reward shareholders while making investments in pursuit of our vision.
“We are optimistic that the actions we have taken to date have strengthened our portfolio in the three major smoke-free categories. We have built a compelling portfolio in heated-tobacco, enhanced our ability to compete in e-vapor and continued to strengthen On!’s position in the oral tobacco category.
“We are narrowing our full-year 2022 guidance and now expect to deliver adjusted diluted EPS in a range of $4.81 to $4.89, representing a growth rate of 4.5 percent to 6 percent from a base of $4.61 in 2021. We believe this range allows us the flexibility to react to marketplace conditions.”
Net revenues for the third quarter decreased 3.5 percent to $6.6 billion, primarily driven by the sale of the company’s former Ste. Michelle wine business in October 2021 and lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment. Revenues net of excise taxes decreased 2.2 percent to $5.4 billion.
Reported diluted EPS increased 100 percent-plus to $0.12, primarily driven by lower reported losses from investment in ABI (due primarily to a lower impairment of the company’s investment in ABI), favorable Cronos-related special items, higher reported operating companies income (OCI) and fewer shares outstanding, partially offset by unfavorable changes in the estimated fair value of the company’s investment in Juul (including the corresponding adjustment for a tax valuation allowance).
Adjusted diluted EPS increased 4.9 percent to $1.28, primarily driven by higher adjusted OCI and fewer shares outstanding.
Net revenues for the first nine months decreased 3.9 percent to $19 billion, primarily driven by the sale of the company’s former Ste. Michelle wine business in October 2021 and lower net revenues in the smokeable products segment. Revenues net of excise taxes decreased 2.6 percent to $15.6 billion.
October 31, 2022