Category: Featured

  • UK Urged to Tackle Illegal Vapes

    UK Urged to Tackle Illegal Vapes

    Photo: BAT

    The U.K. government should be cracking down on illegal vapes rather than introducing redundant policies on cigarettes, according to BAT Chief Corporate Officer Kingsley Wheaton.

    Wheaton made his comments in the context of the British government’s “generational tobacco ban.” The U.K.’s previous Conservative administration announced plans to create a smoke-free generation by banning the sales of cigarettes in the future to anyone who is currently aged 14 or under. The new Labour government is continuing with the policy and is also concerned about the prevalence of disposable vapes.

    Wheaton cited a BAT analysis showing that by the time the generational ban takes force, smoking rates will have already fallen below 5 percent in that age category.

    BAT is instead pushing for licensing for retailers selling vapes. With proper enforcement, licensing will help reduce the number of underage children getting their hands on e-cigarettes and level the playing field for all companies operating in the industry, according to the multinationals.

    “We need to move on to a more mature dialog with real solutions for the problems that are out there,” Wheaton was quoted as saying by Bloomberg.

  • Filtrona Expands Boreas Range

    Filtrona Expands Boreas Range

    Image: Filtrona

    Filtrona has expanded its Boreas range of filters for heated-tobacco products (HTP) with six new products. The new innovations will make their debut at the InterSupply trade show in Dortmund, Germany, Sept. 19–21, 2024.

    The new HTP filters include the Boreas Echo, which incorporates a heat protection design to deliver a pleasant user experience at an optimal temperature, and the Boreas Echo II, which enables a fuller experience in every puff with enhanced aerosol volume control.

    The Boreas Echo III features a proprietary triple Corinthian structure, designed to deliver a stable and steady temperature profile that ensures consistent performance comparable to leading products in the market. The Boreas Echo IV is made with a low-density paper bridge segment that is designed to optimize the balance between temperature and aerosol delivery.

    The new filters to be launched at InterSupply also include the Nimbus, which features a triple tube structure that delivers a balanced and consistent experience, and the Nimbus+, designed to enhance the generation of visible aerosol for a more intense user experience.

    “We are delighted to launch six new filters for the fast-growing HTP market at InterSupply. The Boreas range was well received by the industry when it was introduced in May this year,” said Filtrona CEO Robert Pye in a statement.

    “We have enhanced the Boreas range with new filter solutions that are innovatively designed to meet the unique requirements of almost any HTP application.”

  • Philippines Lowers Minimum Prices

    Philippines Lowers Minimum Prices

    Photo: Bowonpat

    The Philippines tax authority has lowered the floor prices for tobacco products, citing lower production costs, reports Business World.

    The floor price is the minimum price of products and is set by the Bureau of Internal Revenue (BIR), which considers production costs, excise tax and value-added tax in its calculations.

    Under Revenue Regulations No. 016-2024, the floor price of a pack of cigarettes was lowered to PHP78.58 ($1.41) from PHP114.60 last year. A ream of cigarettes now costs PHP785.80 compared with PHP1,146 previously.

    The floor price for heated-tobacco products was cut to PHP60.11 per pack from PHP120.40.

    A 2 mL pod of nicotine salt now has a floor price of PHP180.67, down from PHP200 a year earlier. The floor price of a 10 mL bottle was set at PHP679.12.

    A 10 mL bottle of classic nicotine, by contrast, now costs PHP181.72, up from the PHP179.20 set a year earlier, while the floor price of a 30 mL bottle was PHP263.73, down from PHP403.20 previously.

    Retailers selling below the floor price risk fines of up to PHP500,000 and up to six years’ imprisonment.

    “We are warning all e-marketplaces, online sellers, retail sellers, suppliers and distributors that are selling vapes, cigarettes and heated-tobacco products below the floor price … this is a criminal violation penalized by imprisonment of the seller,” said BIR Commissioner Romeo D. Lumagui Jr.

  • JT Extends Vector Tender

    JT Extends Vector Tender

    Photo: Paul Brady

    Japan Tobacco has withdrawn and refiled its premerger notification and report form under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act) in connection with the JT Group’s pending acquisition of Vector Group.

    On Sept. 4, 2024, the JT Group commenced a cash tender offer to purchase all outstanding shares of common stock of Vector Group for $15 per share.

    JT withdrew and refiled its premerger notification and report form to provide the Federal Trade Commission with additional time for review. Following such refiling, the waiting period under the HSR Act will expire Oct. 3, 2024, at 11:59 p.m. Eastern Time.

    The acquisition is expected to be completed by the end of JT Group’s current fiscal year, ending Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions.

  • British American Tobacco Launches ‘Omni’

    British American Tobacco Launches ‘Omni’

    Photo: BAT

    BAT unveiled Omni during the company’s first-ever Transformation Forum in London.

    According to BAT, Omni is an evidence-based, accessible and dynamic resource that shows how science and innovation can combine to achieve a smokeless world.

    “Tobacco harm reduction—encouraging smokers who would otherwise continue to smoke to switch completely to less risky alternatives—is the fastest route to achieving a smokeless world,” said Kingsley Wheaton, BAT’s chief corporate officer, in a statement. “And we’re committed to working with others to make this a reality.

    “While we have history of humans smoking tobacco for more than 8,000 years, innovation has now delivered smokeless products with reduced risks compared to cigarettes. We stand on the threshold of a breakthrough science-backed change.”

    Omni brings together hundreds of independent scientific studies, BAT’s own research into its innovations and examples of tobacco harm reduction in action, such as Sweden, which according to BAT stands on the cusp of becoming the first country to go smokeless as defined by the World Health Organization.

    Omni also looks to answer some of the most challenging questions facing the industry and society, including: What is the risk of using smokeless products compared to smoking?; Are smokeless products a gateway to cigarette smoking?; What is the role of flavors in smokeless products and tobacco harm reduction?; What is nicotine?; and What is BAT doing to address underage access to tobacco and nicotine products?

    “With Omni, BAT is showcasing its world-class research,” said James Murphy, BAT’s director of research and science. “Omni means all, and we are committed to opening it up to all stakeholders in the THR policy discussion so that we can seize this exciting opportunity to build a smokeless world.

  • PMI Sells Vectura at a Loss

    PMI Sells Vectura at a Loss

    Photo: PMI

    Philip Morris International is selling Vectura to Molex Asia Holdings for £150 million ($198 million) cash upfront and potential deferred payments of up to £148 million—about a third of the price it paid for the company three years ago. Vectura will be operated by Molex’ Phillips Medisize unit.

    In 2021, PMI paid about $1.2 billion for the U.K. maker of asthma inhalers as part of its efforts to diversify into the pharmaceutical business.

    The deal attracted heavy criticism from anti-smoking campaigners who said the cigarette manufacturer should not benefit from a company that offers treatments of ailments caused or worsened by tobacco products.

    The fierce opposition played a roll in PMI’s decision to sell the unit at a loss. “Despite the investment and commitment to developing products and therapies vital to patients, unwarranted opposition to PMI’s transformation has impacted Vectura’s scientific engagement and commercial CDMO [contract developing and manufacturing organization] relationships.” PMI wrote in statement.

    “With its experience in pharmaceutical drug delivery devices and its global manufacturing footprint, Phillips Medisize is best placed to lead Vectura into the future—while releasing it from the unreasonable burden of external constraints and criticism related to our ownership,” said PMI CEO Jacek Olczak.

    Vectura is part of a “health and wellness” unit that also includes Fertin Pharma, the producer of a smoking-cessation aid, that PMI bought for about $820 million in 2021. Last year, PMI took a $680 million impairment charge on the unit after unsuccessful clinical trials and slower-than-expected development of other products.

    Selling Vectura will allow PMI to “rid itself of a financially struggling unit,” said Kenneth Shea, a Bloomberg Intelligence analyst. “But it also represents a strategic backpedal to the company’s once-bold ambition to serve the inhaled therapeutics medical market,” he added.

  • BAT Announces Management Board Changes

    BAT Announces Management Board Changes

    Photo: adragan

    BAT has announced management board changes. Kingsley Wheaton will be appointed as chief corporate officer, a newly created role. Wheaton’s current role of chief strategy and growth officer will cease to exist.

    As chief corporate officer, Wheaton will have overall responsibility for the strategy and execution of the group’s sustainable future pillar, including:

    • Establishing broad acceptance of BAT’s tobacco harm reduction (THR) agenda, working with BAT’s director of research and science, James Murphy, to ensure the scientific basis for harm reduction and encouraging a fact-based discussion on nicotine among key stakeholders;
    • Shaping the landscape through responsible and transparent dialogue with regulators, policymakers and other relevant stakeholders; and
    • Enhancing BAT’s leadership in sustainability and integrity.

    Paul McCrory, director of corporate and regulatory affairs, will continue to report to Wheaton in this role. Donato Del Vecchio, chief sustainability officer, will also continue to report to Wheaton.

    Luciano Comin, marketing director for combustibles and new categories, will be appointed chief marketing officer, reporting directly to Tadeu Marroco, CEO.

    James Barrett, director of business development, will report to Soraya Benchikh, chief financial officer.

    All changes are effective immediately.

    “We will be taking an important step later today in our journey to encourage THR acceptance with the launch of a compelling science and evidential case for THR in the form of ‘The Omni: Forward Thinking for a Smokeless World,’” said Marroco.

    “I would like to thank Kingsley for all that he has done as chief strategy and growth officer. He has stepped into the role at a critical time for BAT and has helped shape the strategy and establish new functional capabilities. In all of these areas, BAT is now stronger and more robust.”

    “I feel honored to take up this new challenge,” said Wheaton. “As BAT moves forward toward ‘A Better Tomorrow,’ the focus on this area of the strategy will be all-important. I am looking forward to bringing my experience and understanding of both BAT and the external environment and making a real difference.”

  • EU Wants to Ban Outdoor Smoking and Vaping

    EU Wants to Ban Outdoor Smoking and Vaping

    The European Commission will propose extending smoking bans to outdoor areas, such as cafe terraces, bus stops and zoos. The proposal will also include nicotine-free products, according to leaked documents.

    The recommendations include “heated-tobacco products and electronic cigarettes, whether containing nicotine or nicotine-free.” The commission also wants to include “tobacco surrogates and any other smoke and/or aerosol emitting products, according to the documents.

    “The evidence on the use of emerging products as a cessation aid is inconclusive,” the documents said. The recommendations follow growing evidence that secondhand exposure to “aerosols from electronic cigarettes, both with and without nicotine, expose bystanders to quantifiable levels of particulate matter and key toxicants and contaminants.”

    “The level of coverage of smoke-free rules varies greatly based on the type of smoke-free environments, and the general level of coverage of outdoor spaces in smoke-free policies is low,” the commission said.

    The new guidelines would include outdoor or semi-outdoor, meaning partially covered or enclosed spaces like rooftops, balconies, porches and patios, associated with service establishments such as restaurants, bars and cafes. Public transport hubs like bus stops and airports and outdoor areas linked to workplaces, hospitals and nursing homes would also be included. Recreational areas where children are present would also be covered, including public playgrounds, amusement parks, swimming pools and zoos as well as educational premises ranging from preschool childcare to university.

    The new recommendations are expected to be announced Sept. 17.

    The leaked proposal has already received backlash from the World Vapers’ Alliance (WVA). “The commission is making a disastrous mistake by lumping vaping with smoking,” said Michael Landl, director of the WVA. “This sends a dangerous message to millions of smokers who need vaping to quit. This falsely equates vaping with smoking, misleading millions into believing vaping is just as harmful when it’s actually 95 percent less harmful. There is virtually no secondhand vaping, and it is way less harmful than smoking. These recommendations will keep more people smoking and put public health at greater risk by equating vaping with smoking.”

    “The commission is outright misleading smokers by claiming vaping and smoking are the same,” said Alberto Gomez Hernandez, policy manager at the WVA. “This blatant disregard for science and consumer choice ignores the facts. Allowing vaping in smoke-free areas could drive more smokers to switch, cutting smoking deaths across Europe. Instead, they’re blocking a proven harm reduction tool and putting lives at risk.”

  • New Zealand Cracks Down on Illegal Nicotine Sales

    New Zealand Cracks Down on Illegal Nicotine Sales

    Image: mehaniq41

    New Zealand has started sentencing for repeat violators of its cigarette and vape laws, according to the ministry of health.

    Christchurch tobacco retailer Canteros received a fine of NZD28,000 for eight breaches of the Smoke-free Environments and Regulated Products Act. The violations related to the selling, labeling and advertising of cigars.

    The owner and an employee of Discount Specialist were fined a total of NZD8,000 for repeatedly selling single cigarettes and allowing tobacco products to be visible to the public inside the store.

    While infringement notices with fees of NZD500 are routinely issued for sales of regulated products to minors, this chain of prosecutions is among the strongest action to be taken against illegal vape and cigarette sales to date.

    In August, a Christchurch dairy owner was fined NZD56,000 under the act.

    “A significant majority of retailers comply with the law and do not sell restricted products to young people, though it’s disappointing to see some retailers fail to abide by the law and sell cigarettes or vapes to children and young people,” said Jo Pugh, compliance manager at the national public health service.

    “This compliance work is a high priority for the health agencies. We will continue to monitor and identify retailers who are not complying with the law.”

  • Tax Hike Sparks ‘Chaos’ in Jordan Market

    Tax Hike Sparks ‘Chaos’ in Jordan Market

    Photo: Rodworks

    Jordan’s recent tobacco tax hike has sparked turmoil in the market, reports Roya News.

    Smokers reported price differences of JOD1 ($1.41) or more for the same brand across various shops. Some suspect traders have been exploiting the tax increase to boost their profits.

    Critics are urging the government to standardize prices.

    On Sept. 12, the government approved an amended special tax system for 2024, adjusting tobacco taxes to align with the national strategy to discourage tobacco use.

    The revision aims to curb the spread of electronic smoking devices, particularly among children, and to address the disparities in taxes between traditional cigarettes and their alternatives.