Category: Featured

  • Boka Tobacco Sales Suspended

    Boka Tobacco Sales Suspended

    Photo: Taco Tuinstra

    Zimbabwe’s Tobacco Industry Marketing Board (TIMB) has suspended the Boka Tobacco Sales Floor (BSF) from purchasing tobacco from farmers with immediate effect, reports Africa Press.

    The regulator acted on July 14 following several reports by growers that they have spent more than a month without receiving payment for their produce.

    TIMB Public Affairs Officer Chelesani Moyo said the suspension will be reviewed after the BSF clears all its outstanding dues and provides proof of adequate financial resources.

    “We have received several complaints from growers who have not been paid by Boka Tobacco Sales Floor after sales,” she said.

    “As a regulator, we have engaged with Boka management to resolve the issue in an amicable manner.

    With immediate effect, TIMB has suspended all tobacco purchases by Boka until they have cleared all outstanding payments and provided proof of adequate financial resources.”

  • Activist Investor to Oppose Match’s Sale

    Activist Investor to Oppose Match’s Sale

    Photo: Swedish Match

    Elliot Investment Management is building a stake in Swedish Match and plans to oppose the pending takeover of the Scandinavian tobacco company by Philip Morris International under its current terms, according to Bloomberg.

    In May, Swedish Match’s board of directors accepted Philip Morris International’s offer of SEK161.2 billion ($16.14 billion), which is subject to shareholder approval. Financial analysts said a deal has strategic merit for PMI given the Swedish Match’s strength in oral nicotine products and exposure to the lucrative U.S. tobacco market.

    It’s unlikely that Elliott will succeed in building a large enough stake in Swedish Match to stop the deal on its own, according to Mads Rosendal, an analyst at Danske Bank.

    “Even if they were to be successful in blocking the deal it would not necessarily be bad for Swedish Match spreads, as they were trading tighter than PMI before the deal announcement,” he wrote in a research note Friday.

    Earlier this year, Swedish Match shareholder Bronte Capital also opposed the takeover, saying the offer price was “unacceptable,” according to Reuters.

    Another shareholder has also said it was not clear whether the long-term value of Swedish Match was reflected in PMI’s offer price.

    Some 90 percent of shareholders need to agree to the deal for it proceed under Swedish law.

  • Pakistan Mandates Tobacco Track-and-Trace System

    Pakistan Mandates Tobacco Track-and-Trace System

    Photo: Taco Tuinstra

    Several tobacco companies are challenging Pakistan’s Federal Board of Revenue (FBR) in court, seeking relief from the country’s new track-and-trace system, according to reports in The International News and Dawn.

    Starting this month, all tobacco companies operating in Pakistan must implement the country’s track-and-trace system. Tobacco products may enter the domestic market only if they carry stamps and unique identification markers.

    To date, only three tobacco manufacturers—Pakistan Tobacco Co., Philip Morris International and Khyber Tobacco Co. (KTC)—have installed the track-and-trace system and made it operational. KTC Chief Technology Officer Shahid Sattar said the system would help the company enhance its presence in the Pakistani market and improve the quality of its products to international standards.

    The companies challenging the FBR want to continue selling old stock. The agency instructed them to discontinue such sales on June 30.

    The tobacco companies that are already operating the system maintain that it will succeed only if all players implement it. According to critics, the companies challenging the FBR instructions engage in illicit trade and fear the track-and-trace system will expose their illegal activities.

    In addition to the multinationals, there are at least 21 tobacco companies operating in Pakistan, including 18 in Khyber Pakhtunkhwa and three in the country’s federally and provincially administrated tribal areas.

    Out of the PKR134 billion ($645.47 million) in taxes collected from the tobacco industry in 2020, PKR131 was paid by two companies, which together held a 65 percent market share.

  • Brazil Maintains E-cigarette Ban

    Brazil Maintains E-cigarette Ban

    Photo: Brenda Blossom

    Brazil’s national health surveillance agency, Anvisa, decided on July 6 to maintain its ban on the import, advertising and sale of electronic cigarettes in Brazil, according to News Bulletin 24/7. The restriction began in 2009, but marketing continues illegally in the country, so Anvisa also called for increased inspections and educational campaigns  to curb the illicit trade in e-cigarettes.

    The decision was taken unanimously during a meeting of the body’s collegiate board. According to Anvisa Director Cristiane Rose Jourdan, scientific studies show that the use of electronic smoking devices increases the risk of smoking in young people, the potential for dependence and the likelihood of lung, cardiovascular and neurological health problems.

    The Brazilian Medical Association (AMB) applauded Anvisa’s position. ​”This is a wise decision, as there is increasing scientific evidence that the use of electronic smoking devices, the DEFs, is not harmless, does not support smoking cessation or is a form of harm reduction, but a product that causes dependence and can cause several diseases, especially cardiovascular, respiratory and cancer,” said Ricardo Meirelles, coordinator of the Commission to Combat Tobacco at AMB.

    A survey carried out in the first quarter of 2022 by the Vital Strategies organization and the Federal University of Pelotas, revealed that 19.7 percent of Brazilians aged between 18 and 24 have tried electronic cigarettes.

    BAT Brasil (formerly Souza Cruz) said it will assess the regulatory impact analysis of Anvisa’s decision when it is published.

    “Dozens of countries have already understood the importance of risk reduction as part of their tobacco control policies and, given this reality, have advanced in the regulation of these devices,” the company said in a statement, citing the examples of United States, the European Union and the United Kingdom, among others.

    Japan Tobacco International regretted Anvisa’s decision. “The use of electronic devices in the country is current and supplied exclusively by illicit trade. Legalized companies do not sell the product and the growth in consumption that affects the population comes from the illegal acquisition of devices,” the company said.

  • Strong Opposition to FDA Flavor Bans

    Strong Opposition to FDA Flavor Bans

    Image: nosyrevy

    The U.S. Food and Drug Administration has received more than 110,000 comments on the proposed rule that would end the sale of menthol cigarettes and nearly 60,000 comments on the proposed rule that would prohibit characterizing flavors in cigars.

    Many wrote to oppose the ban, including business owners who said it would force them to cut jobs.

    “If implemented, this proposal could hurt retailers and wholesalers in the U.S. and directly impact my bottom line,” wrote a tobacco retailer in Florida. “This ban targets a significant portion of my revenue; menthol cigarettes alone make up 36 percent of all cigarette sales in the United States. Additionally, adult customers who purchase menthol cigarettes also purchase gas, food and other items that my store depends on.”

    Thousands of letters submitted online came from menthol cigarette smokers who perceived the proposed restrictions as an unfair attack on personal liberty.

    “This regulation far beyond overreaches the authority that the government should have over the American people,” wrote one respondent. “We have age restrictions for a reason, and once you reach that age you should be able to make the choice to use any legal product that you wish.”

    Others supported the proposal, saying removing menthol and other flavors would improve health and help rectify racial injustices.

    “The ban on menthol in cigarettes is a necessary step toward health equity and health promotion,” wrote Kaelor Gordon. “This substance unjustly and unfortunately places the burden of tobacco use and death on Black individuals and communities of color at higher and disproportionate rates, so to ban menthol would be in tune with the anti-racist and health equitable culture we are strongly cultivating today.”

    The FDA recently extended the comment period from July 5 to Aug. 2, 2022.

  • U.K. Launches New Track-and-Trace System

    U.K. Launches New Track-and-Trace System

    Photo: Uzfoto

    The United Kingdom has a new track-and-trace system for tobacco products, established and operated by Dentsu Tracking. Launched on July 1, the system provides the U.K. government with digital, data-driven traceability functionality across the entire tobacco supply chain. The system is part of the U.K.’s anti-illicit trade strategy, supporting Her Majesty’s Revenue & Customs’ (HMRC) efforts to fight illicit trade.

    “We are honored to work with HMRC and help the U.K. in the fight against illicit tobacco trade,” said Philippe Castella, managing director of Dentsu Tracking, in a statement. “Our digital system is tailored to the policy objectives of HMRC and designed to address the specific characteristics of the U.K. market. This ensures that the system provides HMRC with the highest level of visibility and government control over the entire U.K. tobacco supply chain.”

    The new track-and-trace system leverages the advantages of digital technology to enable the movement of legal tobacco products to be monitored (tracking) and allow U.K. authorities to detect and fight the different forms of illicit trade, thereby curbing the circulation of non-compliant products for which taxes have not been paid and that do not meet all legal requirements in terms of content and packaging. Reducing the circulation of non-compliant tobacco products enables the U.K. to increase national tax collection while protecting citizens and legitimate businesses.

    The new system was designed in line with all applicable U.K. and international laws, including full compliance with the FCTC Illicit Trade Protocol that requires parties to ensure the tracking and tracing of tobacco products along both manufacturing and key distribution points.

    By integrating sophisticated data analytics tools, Dentsu’s system transforms the collected supply chain data into meaningful information that helps U.K. authorities to identify potentially fraudulent events. The new U.K. system supplies HMRC with real-time detailed analyses, statistics and alerts, which some stakeholders have already described as “groundbreaking,” according to Dentsu.

    “At Dentsu Tracking, we strongly believe that the added value of tracking and tracing is only as strong as the level of supply chain insights that the system delivers to government bodies,” said Jan Hoffmann, director of government business. “Collecting data therefore is not enough. We generate powerful business intelligence that will help the U.K. authorities to carry out targeted controls and real-time investigations in the field.”

    All businesses engaged in the manufacture, importation, exportation, storage, distribution and sale of tobacco products into and through the U.K. supply chain must use the new track-and-trace system. Track-and-trace requirements have existed in the U.K. since May 2019 and currently apply to cigarettes and roll-your-own tobacco. All other tobacco products will have to comply with the requirements from May 20, 2024.

    Dentsu Tracking was appointed as provider for establishing and operating a new U.K. tobacco track-and-trace system in November 2021 by means of a public procurement process. Dentsu replaces the previous provider De La Rue.

  • Geekvape Shares Fluid Dynamics Expertise

    Geekvape Shares Fluid Dynamics Expertise

    Photo: trodler1

    Geekvape shared its expertise in computational fluid dynamics (CDF) at the 14th International Conference on Computer Modeling and Simulation, hosted June 24-26 by the Chongqing University of Posts and Telecommunications.  

    Geekvape has used CFD to structurally optimize ceramic atomizers. In designing electrically heated atomizers, the heat and mass transfer phenomenon is essential for maximizing the product’s performance. The company’s engineering team developed patented product designs with higher heat efficiency and better atomization performance.

    “This invitation is a great honor for Geekvape to communicate with many international experts and scholars in related research fields, to discuss the latest technological progress and share our most recent findings,” said Jiadong Zang, who represents Geekvape’s advanced technology and application research institute, in a statement.

    “This has profound implications for the future development of the global e-cigarette industry, as well as for the improvement of scientific and technological innovation to facilitate the industry’s high-quality development.”

  • RELX Trains UAE Customs Officials on Illicit Trade

    RELX Trains UAE Customs Officials on Illicit Trade

    Photo: F8 \ Suport Ukraine

    RELX International and SABA IP recently trained officials from the Abu Dhabi Customs Authority and Department of Economic Development to help them combat the illegal trade in vapor products.

    The session covered topics such as distinguishing legal products from illegal ones, raising awareness about the consequences of the illegal e-cigarette trade and sharing research and intelligence. The program also discussed product authentication, tracking and tracing technologies.

    According to RELX, contraband and counterfeit e-cigarettes are produced in unregulated facilities and pose a serious health risk to legal age consumers and minors. Counterfeit e-cigarettes often use inferior e-liquid formulas; capsules frequently leak and provide misleading information about the nicotine dosage in the capsules.

    “The training sessions for the Abu Dhabi Customs Authority, Department of Economic Development and Ras Al Khaimah Customs Authority showcase RELX International’s commitment, as a responsible company, to working with local authorities, investigation firms and e-commerce platforms to identify and remove contraband and counterfeit e-cigarette products from the market, as part of the RELX Pledge,” said Robert Naouss, external affairs director, MENA and Europe at RELX International, in a statement.

    In 2019, RELX International established the Golden Shield Program to prevent the production and sale of illicit goods. Since its inauguration, the program has helped remove more than 550,000 fake products from the market, plus over 77,000 websites.

    Additional training sessions are planned in countries across the Middle East, including in Egypt and Jordan. Earlier this year, RELX concluded a training session with customs officials in Saudi Arabia.

  • FDA Ignored Evidence in ‘Deeming’ Premium Cigars

    FDA Ignored Evidence in ‘Deeming’ Premium Cigars

    Photo: Viacheslav Yakobchuk

    The U.S. Food and Drug Administration ignored evidence about health risks in considering premium cigars to be subject to same law as cigarettes, a federal judge ruled on July 5, reports Reuters.  

    The litigation focuses on the 2016 Deeming Rule, in which the agency identified a wide range of tobacco products, including premium cigars, to be subject to its regulatory authority along with cigarettes under the Family Smoking Prevention and Tobacco Control Act.

    The FDA rule requires cigar makers to register their products annually, provide ingredient lists for each product and submit products for laboratory testing—procedures the premium cigar industry considers impractical for its handmade, “artisan” products.

    The Premium Cigar Association and Cigar Rights of America challenged the Deeming Rule, arguing that, unlike cigarettes and e-cigarettes, premium cigars do not appeal to young people and are not associated with addiction. They cited studies showing that young people are unlikely to use premium cigars, that users of premium cigars are unlikely to smoke them frequently and that infrequent cigar use is not associated with increased mortality.

    U.S. District Judge Amit Mehta in Washington DC agreed that the FDA had not adequately considered the studies cited by the plaintiffs, instead asserting that there was “no evidence” that premium cigars were less harmful.

    “Where, as here, an agency speaks in absolute terms that there is no evidence, it acts arbitrarily and capriciously when there is in fact pertinent record evidence and the agency ignores or overlooks it,” the judge wrote.

    Judge Mehta asked the FDA and the industry groups to submit briefs on whether he should vacate the FDA’s decision or simply remand the matter back to the agency.

  • Gwinner Named Consumer Goods Tech CIO of the Year

    Gwinner Named Consumer Goods Tech CIO of the Year

    Photo: RAI

    Aaron Gwinner, chief information officer and senior vice president of digital business solutions for the Reynolds group of companies, has won the 2022 Consumer Goods Technology (CGT) CIO of the Year Award.

    The CIO of the Year Award recognizes a consumer goods company’s senior-most technology leader who has made a significant impact through the implementation and utilization of successful technology.

    Those who nominated Gwinner applaud his success in driving transformation within the organization and, in turn, developing a strong company culture.

    “Aaron has been a driving force behind the creation of new capabilities that allow us to operate a stronger, faster and simpler organization,” said Reynolds CEO Guy Meldrum in a statement. “His exceptional leadership continues to accelerate the transformation of our business. All of us at Reynolds congratulate him on this outstanding achievement.”

    Since joining Reynolds in 2019, Gwinner’s impact has been substantial, with notable accomplishments including launching a new e-commerce platform that improved e-commerce growth and enhanced mobile website performance by 500 percent. Gwinner attributed these successes, among others, to his team of more than 400 professionals for the excellent work they do every day.

    Additionally, his team established a hub in Silicon Valley to partner on new technology innovations, replaced all aging marketing platforms and websites while migrating 80 percent of the company data to the cloud, and built a new data science and e-commerce team that increased mobile conversion by 35 percent while delivering $200 million in benefits from data analytics.

    “It is an honor to receive CGT’s CIO of the Year award and a testament to our remarkable teams at the helm of our digital transformation,” said Aaron Gwinner. “They’re the ones who do the work. My job is to set a clear vision, get the roadblocks out of their way and empower them to deliver. When they deliver, and we get recognized for it, I think it’s a great endorsement of my team and the fantastic work they’ve done. Thank you to CGT and all those who submitted nominations for this extraordinary recognition.”