Category: Featured

  • Illicit Tobacco Seized in Belgium

    Illicit Tobacco Seized in Belgium

    Photo: Europol

    Authorities seized over 57 million cigarettes and more than 48 tons of cut tobacco during raids in Belgium, reports Europol. The actions prevented the circulation of illegal tobacco products with a total tax value of more than €32 million ($31.98 million).

    Police carried out house searches in warehouses and at a private residence in Belgium, some of which were based on intelligence provided by the Lithuanian Criminal Police Bureau on suspicious deliveries to addresses in Belgium.

    Law enforcement officers discovered two production lines for cigarettes bearing a variety of well-known brand names. The market value of the seized cigarettes amounted to around €73 million in the United Kingdom, the presumed country of distribution for the majority of the products.

    Additionally, law enforcement secured a large number of empty packages, filters, cigarette paper, glue, cardboard and packaging film, as well seven new machines intended for a new production and packaging line.

    The searches led to the discovery of several clandestine production sites, as well as warehouses for storage of large quantities of tobacco products. In some locations, sleeping quarters for workers were uncovered on the premises. Along with confiscating significant amounts of raw materials, authorities seized various vehicles and arrested several persons of Lithuanian, Polish, Ukrainian and Jordanian nationality.

    The seizures are the latest in a series of actions against the illegal cigarette trade in Belgium. This year alone, authorities uncovered and dismantled five illegal tobacco production sites and 15 storage warehouses in the country. Over the same period, they confiscated more than 274 million cigarettes, 88 tons of cut tobacco, 65 tons of water pipe tobacco and 40 tons of raw tobacco.

    The unpaid tax on these products totals more than €139 million, according to Europol.

    Belgium has become a major hub for illegal tobacco production due to its proximity to the French and British borders, and the rising excise duty rates in neighboring countries.

  • Cigarette Smugglers Busted in Hungary

    Cigarette Smugglers Busted in Hungary

    Image: alexlmx

    An operation, led by Hungary and supported by Europol and Eurojust, and involving law enforcement authorities in Austria, the Czech Republic and Poland has led to the dismantling of a criminal network involved in large-scale tax fraud concerning cigarette smuggling.

    The investigation was initiated as the result of intelligence analyzed by Europol. In a recent action day, law enforcement officers arrested one suspect and seized a large amount of valuables.

    In March 2021, the Hungarian Tax and Customs Administration seized nearly 23 million unsealed cigarettes that arrived by plane from Dubai to the Hungarian airport of Debrecen. Produced in the United Arab Emirates, the tobacco products were concealed in car parts being shipped on cargo planes. Hungarian authorities intercepted one shipment as it was leaving the airport in four trucks with Polish license plates.

    Officials suspect that there were two similar deliveries earlier that year, on Jan. 29, 2021, and Feb. 26. 2021. The estimated economic damage to the European Union budget caused by this organized crime group’s tax evasion on the tobacco products amounts to more than €8.75 million.

    On August 16, 2022, law enforcement officers seized €750,000 in various currencies, seven luxury vehicles and 49 luxury watches from the Hungarian citizen who was arrested.

    The authorities are looking for three further suspects for whom European and international arrest warrants have been issued.

    Europol facilitated the information exchange, cross-checked operational information against Europol’s databases and provided additional analytical support to help advance the national law enforcement authorities’ investigations. Eurojust actively facilitated cross-border judicial cooperation between the national authorities involved, including the execution of European investigation orders.

  • Court Rejects Gripum’s MDO Appeal

    Court Rejects Gripum’s MDO Appeal

    Photo: Mikhail Reshetnikov

    A U.S. appeals court denied a petition to review the Food and Drug Administration’s marketing denial order (MDO) to Illinois-based e-liquid manufacturer Gripum, reports Vaping360.

    Gripum submitted premarket tobacco product applications (PMTAs) in September 2020 for about 200 bottled e-liquid products in nontobacco flavors. The company received an MDO on Sept. 8, 2021. Gripum filed a petition for review on Oct. 8 and was granted a stay of FDA enforcement in November 2021. The company participated in oral arguments before the court on April 20.

    Gripum argued that the MDO was unfairly issued because Congress and the FDA did not establish any “ascertainable standards” to determine if the company’s products are “appropriate for the protection of public health.” The company also said that the agency changed the evidentiary standard for a successful PMTA after the application deadline had passed and that the agency failed to conduct individualized PMTA reviews as required by the Tobacco Control Act.

    The 7th Circuit Court of Appeals rejected all of Gripum’s arguments, finding that the FDA’s approach to resolving the application was both reasoned and consistent with the Tobacco Control Act.

    Gripum’s defeat follows a successful MDO challenge by six vapor companies. On Aug. 23, the U.S. Court of Appeals for the 11th Circuit granted petitions for review filed by Bidi Vapor, Diamond Vapor and four other companies challenging the FDA’s rejection of their e-cigarette applications.

  • KT&G to Build Tobacco Packaging Factory

    KT&G to Build Tobacco Packaging Factory

    Photo: KT&G

    KT&G plans to build a new eco-friendly tobacco packaging factory in Sejong City, reports The Korea Herald.

    Under the KRW180 billion ($133.5 million) project, the factory will be constructed at Sejong Mirae Industrial Estate, a government-developed area for local manufacturing companies, by 2025.

    KT&G said the factory will produce tobacco packaging, such as cigarette papers and boxes, based on a cutting-edge logistics automation system and a digital printing process.

    Keen to fulfill a leadership position in energy and environmental design, the company aims to secure an eco-friendly certification by using renewable energy, including solar energy, and upgrading infrastructure for air (pollution) and wasted water.

  • BAT Appoints Sustainability Officer

    BAT Appoints Sustainability Officer

    Photo: BAT

    BAT has appointed Mike Nightingale as its first chief sustainability officer to lead the company’s sustainability and ESG agenda.

    Nightingale has been the group head of investor relations for the past 10 years. Prior to that, he held senior leadership positions in sustainability, regulation and marketing.

    Additionally, to reflect BAT’s corporate intent and the increasing strategic importance of both ESG and sustainability for the group, the role of Kingsley Wheaton as chief marketing officer with responsibility for corporate affairs, will be redesignated as chief growth officer.

    Beyond overseeing the marketing efforts to drive value from combustibles while ensuring a step-change in New Categories performance, Kingsley has also led the initiatives to place ESG front and center of the group’s strategy.

    Nightingale will report to Kingsley in his new role as chief sustainability officer with effect from Sept. 1.

    Victoria Buxton, senior investor relations manager, will be promoted to the role of group head of investor relations and will report to Finance and Transformation Director Tadeu Marroco, also with effect from Sept. 1.

    “I am delighted that Mike has been appointed as our first chief sustainability officer,” said BAT CEO Jack Bowles in a statement. “Mike will lead us into a new era of sustainability ‘thought leadership.’ With his extensive experience of the business, most recently as group head of investor relations, he is uniquely suited to this challenge.

    “Likewise, Victoria has an excellent track record, both as a consumer sector equity analyst and, more recently, as a senior member of Mike’s team. Her promotion is testament to her energy, commitment and drive.”

  • Judge Denies Altria Investor Settlement

    Judge Denies Altria Investor Settlement

    Photo: steheap

    A U.S. federal judge declined to give preliminary approval to a proposed $117 million settlement between Altria Group and shareholders in a lawsuit over the company’s investment in Juul Labs, calling the deal “inadequate,” reports Law360.

    The lawsuit contends that Altria’s executives threw caution to the wind when they bought a 35 percent stake in Juul for $12.8 billion in 2018.

    According to the shareholders, the Altria executives also engaged in illegal and anti-competitive conduct that cost Altria billions of dollars as Juul faced an increasing number of legal battles over the alleged health risks of its products and alleged marketing to underage consumers—problems that the plaintiffs say Altria knew about at the time of the investment but ignored.

    The value of Altria’s investment has declined steadily as Juul Labs faced litigation and increased regulatory scrutiny.

    The plaintiffs argued for approval of the settlement, saying the recovery is fair and reasonable when weighed against the costs and risks of further litigation. U.S. District Judge David J. Novak did not explain why he considered the settlement inadequate.

  • Kaival Expects Boost From Court Ruling

    Kaival Expects Boost From Court Ruling

    Photo: Kaival Brands Innovations Group

    Kaival Brands, the U.S. distributor of products manufactured by Bidi Vapor, expects sales of its Bidi Stick vapor product to benefit from a recent court decision instructing the U.S. Food and Drug Administration to take another look at the company’s premarket tobacco product applications (PMTAs).

    On Aug. 23, the U.S. Court of Appeals for the 11th Circuit granted petitions for review filed by Bidi Vapor, Diamond Vapor and four other companies challenging the FDA’s rejection of their e-cigarette applications. According to Chief Judge William Pryor, the agency didn’t properly assess the companies’ marketing and sales-access-restriction plans designed to minimize youth exposure and access.

    This ruling effectively reverses the marketing denial orders and allows Bidi Vapor to continue to market all flavor varieties of the Bidi Stick in the United States. The company submitted PMTAs for all 11 flavor of its Bidi Stick prior to the Sept. 9, 2020, PMTA deadline.

    “As the exclusive U.S. distributor of Bidi Vapor’s products, this [ruling] is a significant event for us and our downstream partners, as many awaited the decision before expanding distribution, and paves the way for potential revenue growth for our company,” said Eric Mosser, president and chief operating officer of Kaival Brands, in a statement.

    “But more than that, we are glad the appellate court recognized the potential importance and direct effects that an adult-focused marketing plan and strict sales and access restrictions may have on addressing the youth access problem.”

    At press time, the FDA had not announced how it would respond to the court ruling. The agency could appeal the ruling or put Bidi Vapor’s PMTAs for its nontobacco-flavored devices into scientific review.

  • U.K. Vaping Reaches All-Time High

    U.K. Vaping Reaches All-Time High

    Photo: Daisy Daisy

    A record 4.3 million people are active vapers in Britain, reports The Guardian, citing new research by Action on Smoking and Health (ASH).

    The data suggests that 8.3 percent of adults in England, Wales and Scotland vape, compared with 1.7 percent 10 years ago.

    Of the 4.3 million current vapers, around 2.4 million are ex-smokers, 1.5 million are current smokers and 350,000 have never smoked.

    The figures also show that the proportion of current e-cigarette users who have never smoked has increased from 4.9 percent last year to 8.1 percent this year.

    The authors of the report said this figure was an “all-time high.”

    “Over the last decade we’ve seen a vaping revolution take hold,” said Hazel Cheeseman, deputy chief executive of ASH.

    “There are now five times as many vapers as there were in 2012, with millions having used them as part of a quit attempt.

    “However, they haven’t worked for everyone. Just under half of smokers who have tried them have stopped using them and 28 percent have never tried one at all.”

    Meanwhile, smoking is becoming less popular in the U.K. Data from the annual population survey found smoking prevalence among adults aged 18 and over in England declined from 20 percent to 14 percent between 2011 and 2019. The ASH report found e-cigarettes were responsible for an estimated 69,930 additional former smokers in England in 2017.

  • Continental Starts Processing in New Hall

    Continental Starts Processing in New Hall

    Photo: Screaghin

    The Continental Tobacco Group has started processing tobacco in the new preparation hall of its tobacco factory in Satoraljaujhely, Hungary.

    According to Hungary Today, The company is constructing a HUF10 billion ($24.28 million) production hall comprising three stories with a floor area of 1,800 square meters each and modern machinery.

    The investment will increase the tobacco factory’s capacity by around a quarter.

    A family-owned business, the Continental Tobacco Group operates several tobacco companies in Europe and employs around 700 people.

    According to publicly available data, Continental Tobacco last year generated sales of HUF56.41 billion and a profit of HUF6.35 billion. The company’s products are available in more than 30 countries.

    Facing regulatory and competitive challenges, many Hungarian tobacco farmers have left the sector in recent years. While around five thousand people were growing tobacco in Hungary when the country joined the EU in 2004, this number has now fallen to around 600, according to Hungary Today.

  • ‘Flavor Bans Failed to Reduce Youth Vaping’

    ‘Flavor Bans Failed to Reduce Youth Vaping’

    Photo: Pixel-Shot

    Restrictions on the sale of flavored tobacco products were not associated with a decrease in current or ever e-cigarette use among high school students in the California Bay Area one-year after their implementation, according to a new study.

    Researchers analyzed data from the California Healthy Kids Survey to look at e-cigarette use among high-school students in the California Bay Area. They compared changes in e-cigarette use between 2018 and 2019 among students attending school in a city with a flavored e-cigarette ban and students attending school in a city without a flavor ban.

    The researchers concluded that flavored vape bans “did not significantly change” the odds of current and ever e-cigarette use among students.

    Vapor industry advocates contend that flavor bans have negative consequences for public health because flavors are essential for adults trying to quit smoking. State finances are impacted by flavor bans as well. For example, Massachusetts’ ban on flavored vaping and tobacco products is costing the state an estimated $10 million in revenues each month, according to Americans for Tax Reform.