Category: Featured

Tobacco Authority to Rent Out Land

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The Tobacco Authority of Thailand (TOAT) wants to boost revenue by renting out prime land plots in the capital and northeastern Thailand, reports The Bangkok Post.
The authority’s acting governor Nophadol Hantanasarn said the TOAT wants to auction off three plots this year. The rental period is for 30 years. The TOAT expects earn at least THB1.3 billion ($36,87 million) from such leases.
The authority has 6,000 rai (960 ha) of plots across the country, of which 2,000 rai can be rented out as most have been leased to tobacco farmers to plant tobacco.
Nophadol insisted that the auction would be transparent and observed by representatives of the Anti-Corruption Organization of Thailand.
The state authority is scheduled to hold a market sounding event for these three plots on June 28, then sell the bid documents in August before bids are required to be submitted sometime in November.
June 17, 2022
Jury Awards PMI $10.7 Million in Patent Case

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A U.S. jury awarded Philip Morris International $10.7 million on June 15 after finding that R.J. Reynolds Vapor Co.’s Vuse e-cigarettes violate its patent rights, reports Reuters.
The federal court jury in Alexandria, Virginia, said RJR’s Vuse Solo and Alto devices infringe two PMI patents covering parts of a vaping device for heating substances and preventing leaks. At the same time, the jury cleared Vuse Alto of infringing one of the patents.
A Philip Morris spokesperson told Reuters the company was “grateful” for the verdict, which “rejects an attempt by BAT to free-ride on our hard work and investment.”
A spokesman for RJR indicated it may appeal the June 14 verdict.
The case is part of a multi-front patent dispute between PMI and RJR parent company British American Tobacco.
The recent verdict concerned counterclaims in RJR’s ongoing patent lawsuit over PMI’s IQOS heated-tobacco device. RJR won an order blocking IQOS imports at the U.S. International Trade Commission last November.
PMI succeeded earlier this year in invalidating parts of some patents RJR accused it of infringing at a U.S. Patent Office tribunal.
BAT has also sued PMI over IQOS in the United Kingdom, Germany and elsewhere. A PMI filing with the U.S. Securities and Exchange Commission earlier this year said IQOS patent lawsuits and challenges outside of the U.S. have “repeatedly and universally failed.”
Altria has separately sued RJR for patent infringement in North Carolina over the Vuse line, in another case that is still pending.
June 16, 2022
Louisville University to Study Vape Flavorings

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The National Institutes of Health and the U.S. Food and Drug Administration have given the University of Louisville $3.6 million to study the effects of flavorings used in vaping products, reports Kentucky Today.
Researchers at the University of Louisville’s Christina Lee Brown Envirome Institute hope to better understand the short-term and long-term impacts of flavorings—specifically on the heart—and catalog which are potentially harmful.
“E-cigarettes are still relatively new, and we don’t yet fully understand what their health effects are,” said Alex Carll, an assistant professor in the department of physiology and co-lead on the project. “Understanding this could help us make better purchasing and regulatory decisions.”
The FDA banned flavors used in disposable e-cigarettes and has not approved any flavors except tobacco through its premarket tobacco product application process. The agency contends that some flavors could appeal to kids and help fuel rising rates of youth vaping.
Matthew Nystoriak, an associate professor of medicine and co-lead on the project, said some flavors may seem harmless because they taste like or use the same ingredients as in food. But while those ingredients are safe to eat, they may not be safe to inhale.
“Our goal is to understand how individual flavoring chemicals impact the heart,” Nystoriak said. “There are many flavor chemicals used in e-cigarettes, and if we know which are potentially more harmful than others, it’s possible for people to make more informed decisions about which products they use.”
Identifying their biological effects is also likely to help the FDA in regulating flavoring additives in e-cigarettes in the future.
June 16, 2022
Kinsman Named CFO at 22nd Century

Photo: akub Jirsák | Dreamstime.com
22nd Century Group has appointed R. Hugh Kinsman as chief financial officer. Kinsman is currently CFO of GVB Biopharma, which 22nd Century acquired in May.
“The integration of GVB Biopharma is proceeding very well, and we are excited to build on Hugh’s success at GVB by elevating his financial leadership role to 22nd Century as a whole,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.
Kinsman has extensive experience as a senior executive in roles ranging from acting CFO of a publicly traded battery manufacturer with operations in the U.S., Switzerland and Italy, to the CFO of West World Media, a private data aggregation company that was acquired for $60 million.
He also worked at GE Capital where he oversaw over a billion dollars in infrastructure, energy, and communications investments. He began his career at Asher & Company, CPAs (now BDO) and has held a certified public accountant designation.
He earned his Bachelor of Science degree in finance from Penn State University and an MBA from Cornell University.
June 16, 2022
China E-Cigarette Exports to Exceed $27 Billion

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The value of China’s electronic cigarette exports will reach CNY186.7 billion ($27.82 billion) this year, reports Pandaily, citing the Blue Book of Electronic Cigarette Exports, which was released by the China Electronics Chamber of Commerce on June 14.
According to the Blue Book, China exported e-cigarettes with a value of CNY138.3 billion in 2021, 180 percent more than in the previous year.
In the first quarter of 2022, the value of Chinese e-cigarette exports stood at CNY45.3 billion. Most of those exports (58 percent) went to the United States, followed by the European Union and Britain (24 percent) and Russia (8 percent). Southeast Asia and the Middle East accounted for 5 percent and 4 percent of Chinese e-cigarette exports, respectively.
In 2021, there were more than 1,500 domestic e-cigarette manufacturing and brand enterprises, more than 190,000 e-cigarette retail outlets and nearly 100,000 e-cigarette supply chains and merchandise service enterprises. The domestic e-cigarette industry directly employs about 1.5 million people and indirectly employs 4 million people, totaling about 5.5 million people.
After allowing the vapor product sector to operate in a legal gray zone for years, the Chinese government has started crafting a regulatory framework, placing e-cigarettes under the jurisdiction of the State Tobacco Monopoly Administration.
It has been issuing standards and requirements for production, wholesale and retail, as well as the protection of minors.
June 16, 2022
Pyxus Reports Progress in Fiscal 2022

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Pyxus International reported sales and other operating revenues of $1.64 billion, up 23.1 percent from the prior fiscal year. Gross profit as a percent of sales was 13.8 percent, compared with 12.1 percent in 2021. The net loss attributable to Pyxus International was $82.1 million, which improved 30.2 percent from the prior fiscal year despite $32.2 million of goodwill impairment in fiscal 2022.
The results presented for the prior fiscal year period reflect the periods prior to and subsequent to the company’s emergence from Chapter 11 proceedings.
Pyxus International attributed the increase in sales and other revenues to a 16.8 percent increase in kilo volume and a 7.5 percent increase in average price per kilo. The 16.8 percent increase in kilo volume was driven by larger crop sizes in Africa and increased market share in Africa, Asia and South America partially due to customers reversing their vertical integration in certain markets.
In addition, 21.1 million kilos or $178.3 million of shipments were delayed by the Covid-19 pandemic and customer shipping instructions from the prior year into the current year and was offset by similar volume of shipments expected in the current that has been delayed into next year in Africa, North America and South America.
The 7.5 percent increase in average price per kilo was primarily due to product mix having a higher concentration of lamina in Asia, Africa, and Europe, as well as customer and grade mix in Africa and North America.

Our employees worked diligently to successfully increase volumes and revenue compared to the prior year while continuing to navigate global challenges.
Pieter Sikkel, president and CEO, Pyxus International
“We are proud of the progress made by the business during fiscal year 2022,” said Pyxus’ President and CEO Pieter Sikkel, in a statement. “Our employees worked diligently to successfully increase volumes and revenue compared to the prior year while continuing to navigate global challenges, which largely stem from the ongoing impacts of Covid-19 and the unfortunate events in Ukraine.
“We continued to expand our customer relationships as customers sought solutions to reduce supply chain complexities and improve operational efficiencies. Expansion of these relationships, partially attributable to our environmental, social, and governance framework that we publicly announced in December 2021, increased our market share in Africa, Asia, and South America and contributed to a 16.8 percent increase in kilo volume compared to last year.
“Our efforts in fiscal 2022 to execute on our strategy to increase financing sources and working capital lines around the globe resulted in a new asset-based lending credit facility with PNC Bank in February 2022, which provides the company with an extended maturity date, reduced costs and increased potential borrowing availability. In addition, in June 2022, we entered into an agreement to amend our delayed draw term loan facility, which provides the company with an extended maturity date, reduced costs, and increased financial flexibility.
“In January 2022, we completed the exit of our cash-flow-negative cannabinoid operations. Our restructuring activities generated savings in SG&A, which contributed to a $55.9 million decrease in expense compared to last year. As a result, our SG&A expense has normalized and is consistent with levels prior to our investments to develop those businesses.
“For the full year, we expect fiscal 2023 sales to be between $1.75 billion and $1.95 billion and adjusted EBITDA to be between $130 million and $160 million as we anticipate increased demand for our leaf products, the continuation of Covid-related logistical challenges, and cost and price increases due to inflation.
“Maintaining farmer livelihood and a supply chain of responsibly sourced, sustainable, and traceable products remains a top priority as we engage with customers about the impact of inflation on the cost and price of tobacco going forward. Additionally, we have taken proactive measures to secure inputs for the next year, such as fertilizer and fuel, allowing us to remain focused on delivering stakeholder value as we work to grow a better world.”
June 15, 2022
New Leadership at Covectra
Covectra, a track-and-trace company, has named Gary Miloscia as president and CEO. Steve Wood, co-founder and CEO since Covectra’s inception in 2008, will transition to serving on the board of directors and as a senior advisor to the management team.
“As a leading provider of serialization, track-and-trace and authentication technologies, Covectra is poised to leverage its technology and strategic position to enhance value for its customers,” said Wood in a statement. “I have served over 14 years as CEO and have been proud and fortunate to work with an outstanding and dedicated group of employees. I am deeply grateful for their hard work and commitment and am confident Gary Miloscia will be an excellent leader for Covectra.”
Since 2015, Miloscia has served as Covectra’s chief financial officer and chief marketing officer, responsible for its strategic business, financial planning, marketing and product development initiatives. Prior to Covectra, Miloscia held senior finance roles at Fidelity Investments, Health Dialog and American Express. Miloscia received a Bachelor of Science degree in finance from Rutgers University and a Master of Business Administration degree from Indiana University’s Kelley School of Business.
“I am very excited for the opportunity to assume my new role at Covectra,” said Miloscia. “We have a strong business model and very talented management team that uniquely positions us in providing exceptional serialization and innovative brand protection solutions to our customers. I look forward to leading the company through its next chapter as we move forward to fully commercialize our new StellaGuard security label.”
June 15, 2022
Kaival and PMI Sign Distribution Agreement

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Kaival Brands Innovations Group, the U.S. distributor of all products manufactured by Bidi Vapor, has reached an agreement with Philip Morris Products (PMP), a wholly owned affiliate of Philip Morris International, for the development and distribution of electronic nicotine-delivery system (ENDS) products in markets outside of the U.S., subject to market (or regulatory) assessment.
The company’s recently formed wholly owned subsidiary, Kaival Brands International (KBI), entered into a licensing agreement with (PMP) on June 13, 2022. The agreement grants to PMP a license of certain intellectual property rights relating to Bidi Vapor’s premium ENDS device, known as the Bidi Stick in the U.S., as well as potentially newly developed devices, to permit PMP to manufacture, promote, sell and distribute such ENDS device and newly developed devices in international markets outside of the U.S.
The parties believe this agreement promotes their joint vision of a smoke-free future.
“We believe that in addition to the Bidi Stick having wide acceptance among legal-age nicotine users in the United States, Bidi Vapor’s numerous decisions around design; responsible adult-oriented marketing and stringent youth-access prevention measures; and sustainability bolstered its appeal to PMI,” said Niraj Patel, CEO of Kaival Brands, in a statement.
“We, along with PMI and Bidi Vapor, share the vision of a smoke-free future. The Bidi Stick offers legal-age nicotine users a high-quality alternative to cigarettes that satisfies their taste preferences. Further, we, along with Bidi Vapor, are committed to prioritizing the appropriate regulation and responsible commercialization, inclusive of taking the necessary measures to make sure these products do not appeal to unintended audiences, including youth. By example, Bidi Vapor does not engage in direct online sales to consumers and requires age verification contracts with our distributors and retailers.
“While Bidi Vapor continues to pursue the U.S. Food and Drug Administration premarket tobacco product authorization, cooperation with a major multinational company like PMI, a leader in scientifically substantiated smoke-free products, opens doors on a global scale. Kaival Brands looks forward to a long, productive relationship with PMI to accelerate the end of smoking.”
“We have previously mentioned our intention to broaden our current smoke-free product portfolio for adults who would otherwise continue to smoke cigarettes or use other nicotine products. This agreement supports that vision and is another step toward accelerating the delivery of a smoke-free future. We are excited to start our agreement with Kaival Brands—led by CEO Niraj Patel—who shares the same vision as we do, to accelerate the end of combustible cigarette smoking,” says PMI President of E-Vapor Ashok Rammohan.
June 14, 2022
Flow Stops Sales of Flavored Vapes in China

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E-cigarette manufacturer Flow will stop producing non-tobacco flavored e-liquid cartridges for the Chinese market to comply with new regulations, reports Pandaily.
In November 2021, the Chinese government granted the State Tobacco Monopoly Administration jurisdiction over the vapor business. Since then, authorities have published a series of new rules. Among other things, e-cigarette manufacturers must sell their products through authorized channels. Retailers, meanwhile, are required to buy all vapor products through a “unified platform” and restrict the liquids sold on the Chinese market to tobacco flavors.
According to the Blue Book of the E-Cigarette Industry, there were nearly 190,000 e-cigarette retail stores in China in 2021, including 138,000 authorized stores, 47,000 specialty stores, and 5,000-7,000 “collection” stores.
Currently, fruit-flavored e-cigarettes account for more than 70 percent of sales in many retail outlets.
June 14, 2022
Canada Wants Warnings on Individual Sticks

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The Canadian government wants to require cigarette manufacturers to print written health warnings on individual cigarettes, reports Reuters, citing Mental Health and Addictions Minister Carolyn Bennett.
If the plan moves forward, Canada would be the first country to implement such a rule. In 2001, Canada pioneered graphic health warnings on cigarette packs, an example that has since been followed by many other nations.
Carolyn Bennett said the measure had become stale for the 13 percent of Canadians who smoke regularly.
“Adding health warnings on individual tobacco products will help ensure that these essential messages reach people, including the youth, who often access cigarettes one at a time in social situations sidestepping the information printed on a package,” she was quoted as saying.
A 75-day public consultation period will start on June 11, and this will inform the development of the proposed new regulations.
Rothmans Benson & Hedges, the Canadian unit of Philip Morris International, said the proposals would not help cut the number of smokers.
“We believe that better choices start with better information, and the millions of current adult smokers should be given access to the appropriate information about alternatives,” a spokesperson told Reuters.
Action on Smoking & Health (ASH) welcomed the plan.
“We are delighted to see proposed new graphic health warnings on all tobacco products, including smokeless tobacco” said Les Hagen, executive director of ASH Canada in a statement. “A picture is worth a thousand words and these pictures and messages will protect thousands of Canadians from tobacco dependence and disease. The new and improved warnings will replace the stale messages that have appeared on tobacco packages for over 10 years. The messages on cigarette sticks are a global precedent and will warn smokers about the grave risks of smoking with every puff. The visibility and intensity of these warnings will better reflect the enormous risks of smoking.”
Tobacco use kills over 50,000 Canadians each year—more than all other drugs combined, according to ASH.
June 13, 2022