Category: Featured

  • Saudi Officials Trained to Fight Illicit Trade

    Saudi Officials Trained to Fight Illicit Trade

    Illustration: MyCreative

    RELX International concluded a training session with Saudi Customs Authority and Saudi Authority for Intellectual Property officials on May 25. The training aimed to complement Saudi officials’ efforts in fighting the illicit trade of contraband and counterfeit e-cigarettes in the kingdom.

    The training covered several key aspects: discerning legal products from illegal ones; raising awareness and educating people about the consequences of the illegal trade of e-cigarettes; sharing research and intelligence on identifying illegal trading activities; collaborating with government officials to track and confiscate counterfeit products; and developing and implementing product authentication, tracking and tracing technologies. To facilitate the effectiveness of the training, RELX International collaborated with leading intellectual property firm SABA IP.

    As part of RELX’s ongoing commitment to protecting the rights of legal e-cigarette users, and fighting the illicit trade if e-cigarettes under the Golden Shield Program, additional training sessions are planned in the United Arab Emirates, Egypt and Jordan.

    “As a responsible company, RELX frequently works 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 & Europe at RELX International, in a statement.

    “We are pleased to have been able to complete an in-depth training session with relevant Saudi authorities and applaud their tireless commitment to ensuring consumers in Saudi Arabia have access to authentic and reliable e-cigarette products at fair prices.”

    RELX established the Golden Shield Program in August 2019 to help prevent the production and sale of the illicit goods. Since its establishment, the initiative has helped remove more than 550,000 fake products from the market, as well as over 77,000 websites.

  • RELX Stops Offering Flavors in Philippines

    RELX Stops Offering Flavors in Philippines

    Photo: Aliaksandr Barouski

    RELX International is no longer selling flavored vape products in its outlets throughout the Philippines, according to the Manilla Standard.

    Republic Act No. 11467 and Joint Memorandum Circular No. 003-2020 prohibit the manufacture, importation, sale, and distribution of vapor products with flavoring other than tobacco or menthol in the country.

    Signed by President Rodrigo Duterte on Jan. 22, 2020, the act increases the excise tax rates on alcohol, heated tobacco, and vape products to generate funds for the government to deliver quality and affordable health care services. 

    RELX said the move reflects its commitment to support important reforms that will benefit the collection of tax revenues while catering to legal-age adult smokers, preventing access of e-cigarette among minors, and ensuring responsible and standard-compliant e-cigarettes in retail points across the country. 

  • Philippines: Illegal Trade Thrived During Covid

    Philippines: Illegal Trade Thrived During Covid

    Photo: TR archive

    Illegal tobacco traders did brisk business in the Philippines during the Covid-19 pandemic, reports The Manila Bulletin, citing data presented during a recent webinar organized by the National Tobacco Administration (NTA).

    According to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) revenue loss from illegal tobacco trade went up by 662 percent to PHP3.1 billion ($59.3 million) in 2020 from just PHP406.9 million in 2019. 

    During the webinar, Representative Jericho Jonas B. Nograles, said the BOC seized PHP132.56 million worth of fake cigarettes. According to Euromonitor International, about 13 percent of the total cigarettes sold in the Philippines are illegal. 

    “What happened in the last few years? Number one: unemployment and a decrease in income have put pressure on the household budget. It’s difficult to stop smoking, but it’s easy to spend money. People want to save money amidst rising prices of commodities and decreasing household income,” Nograles explained at the NTA webinar. 

     The pandemic also made it difficult for authorities to crack down on illegal activity, according to the BIR. “We were not able to operate on a massive implementation because we cannot go into some areas that are under lockdown,” said Attorney Beverly Milo, head, revenue executive assistant for the BIR’s Large Taxpayers Service Excise.

    In Jan. 2022, cigarette prices went up due to a PHP55 percent increase in excise tax. A study by management consulting firm Alvarez and Marsal cited a 97 percent correlation between taxes and tobacco prices, in which the illegal tobacco trade grows as the legal options become more unaffordable. 

    Tobacco products like cigarettes are among the most smuggled goods in the ASEAN region. According to the World Bank, the global trade of illicit tobacco is worth between $40 billion and $50 billion. 

    The Philippines neighbors struggle with illicit tobacco trade, too. Malaysia lost out on tax earnings of approximately MYR1 billion ($228,83 million) in 2020.

     All ASEAN member states save for Indonesia are signatories of the WHO Convention on Tobacco Control. This requires countries to suppress the illegal tobacco trade. However, no ASEAN states are part of the Protocol to Eliminate Illicit Trade in Tobacco Products, which requires cooperation and information sharing between countries, including international organizations and customs offices. 

    Nograles recommended strengthening enforcement and ramping up cooperation as measures to eradicate the illegal tobacco trade. This should include improving intelligence sharing between agencies and implementing stringent frameworks for the prosecution and conviction of illegal traders,” he said. 

  • Macau Mulls More E-Cig Restrictions

    Macau Mulls More E-Cig Restrictions

    Photo: javarman

    Macau’s executive council wants to ban the production, sale, distribution, import, export and transport of vapor products in the special administrative region (SAR), reports Macau Business

    Under changes proposed to the tobacco control law, violators would risk fines of MOP4,000 ($500).

    The current law defines an e-cigarette as any product, or component thereof, that can be used to inhale vapor, with or without nicotine, by means of a mouthpiece, including a cartridge, a reservoir, as well as the device without a cartridge or reservoir. 

    The sale of electronic cigarettes in the city has been restricted since 2017; the recently proposed amendment expands the scope of the restrictions. 

    Still, Health Bureau Director Alvis Lo said the measure was intended to protect public health. “The use of electronic cigarettes is harmful to health, namely, it causes harmful effects to pregnant women, children and adolescents, and also exposing non-smokers to nicotine and other harmful chemicals,” Lo said.

    Following years of antismoking campaigns, consumption of traditional cigarettes among people over the age of 15 in Macau dropped to 10.7 percent in 2019.

  • Zimbabwe Sales Volumes Down

    Zimbabwe Sales Volumes Down

    Photo: Taco Tuinstra

    Zimbabwean farmers have sold 102.3 million kilograms of tobacco worth $305.2 million to date—17 percent less than in the comparable period last year, according to the Tobacco Industry and Marketing Board.

    Of the tobacco sold to date, 95.3 million kg were sold through the contract system while the rest was traded at auctions.

    The average price thus far has been $2.98 per kg, up 10.53 percent from last year’s price of $2.70 per kg.

    The tobacco being sold this year was grown under challenging weather conditions, characterized by late and erratic rains.

    Industry officials expect the country’s farmers to harvest 210 million kg of tobacco this year, down from 250 million kg harvested in 2021.

  • Feelm Unveils Ceramic Coil Disposable Pod

    Feelm Unveils Ceramic Coil Disposable Pod

    Photo” Smoore

    Smoore showcased the Feelm Max, a pioneering ceramic coil disposable pod solution, at Vaper Expo UK 2022

    Most existing disposable vapes are equipped with cotton coil, which produces relatively large aerosol particles, leading to inefficient deposition of inhaled particles in the lungs, hence low nicotine delivery and satisfaction, as well as harshness in throat. Soft cotton coils are also associated with leakage and burnt taste, according to Smoore.

    Equipped with a cotton-free, microporous ceramic coil, the Feelm Max delivers more reliable and efficient atomization, Smoore explained in a press note. At the same liquid volume, it offers 25 percent more puffs than traditional cotton coil disposable vapes. Because the ceramic coil generates smaller vaporized particles, the product leaves less residue in the throat, ensuring a smoother vaping experience. The ceramic coil also guarantees constant vapor production, delivering flavor consistence of more than 95 percent.

    According to Smoore, the Feelm Max has a leakage rate of less than 0.03 percent. It also generates smaller vaporized particles, ensuring efficient lung delivery, along with greater and faster satisfaction.

    At Vaper Expo UK 2022, Feelm also showcased its eco-friendly non-nicotine disposable e-cigarette and anti-dust mouthpiece hygienic e-cigarette. Both were recently awarded Red Dot Awards for their green product concepts and avant-garde design. Unlike traditional disposable e-cigarettes made of plastic, the external structure of the eco-friendly non-nicotine disposable e-cigarette is composed of recyclable and reusable paper and aluminum foil while anti-dust mouthpiece hygienic e-cigarette features a twist nozzle, similar to that used on lipsticks, to prevent the contact of mouthpiece with unclean substances.

    The market for disposable vaping products reached approximately $2.13 billion in 2021, accounting for 22.7 percent of all vaping device sales, according to Frost & Suvillian. The consulting firms expects the segment to expand at a compound annual growth rate of more than 28 percent between 2022 and 2026, making it the fastest-growing category among all vaping products.

  • New Papers On Tobacco Harm Reduction

    New Papers On Tobacco Harm Reduction

    Gerry Stimson (Photo: KAC)

    Knowledge Action Change (KAC) has launched the latest in a series of briefing papers as part of its Global State of Tobacco Harm Reduction project. Titled What is Tobacco Harm Reduction?, the publication provides a detailed introduction to the principles, history and evidence for this vital public health strategy.

    For the 1.1 billion people across the world who smoke combustible cigarettes, tobacco harm reduction is a potentially life-saving approach. Like other forms of harm reduction, it recognizes that simply quitting isn’t possible for all smokers. People smoke for the nicotine, but nicotine itself does not cause smoking-related death and disease—it’s the chemicals inhaled in tobacco smoke. Removing combustion reduces the risk. For those people who can’t or don’t want to quit nicotine, tobacco harm reduction offers a chance to switch to safer nicotine products including nicotine vapes, tobacco-free nicotine pouches, Swedish-style snus, many U.S. smokeless tobaccos and heated tobacco products.

    Many of these products have only been developed in the past 10-15 years, but they are proving increasingly popular. Research published in March by the GSTHR estimates there were 82 million vapers worldwide in 2021. This represents a 20 percent increase on the figure for 2020 (68 million), meaning safer nicotine products are now being used by 112 million people worldwide. A striking example of tobacco harm reduction’s potential can be found in Scandinavia. Sweden now has the lowest rate of tobacco-related disease in Europe, thanks to Swedish men switching from smoking to snus, and in Norway, 12 percent of women aged 16-24 use snus daily while only 1 percent smoke.

    In England, tobacco harm reduction can play a key role in the government’s bold ambition to make the country smoke-free (defined as a prevalence rate of under 5 percent of the population) by 2030, according to KAC. The uptake of vaping has been accompanied by a rapid decline in smoking. Vapes are the most popular way to stop smoking, with 3.6 million people vaping in Great Britain, of whom 2.4 million have completely quit combustible cigarettes. But tobacco is still the single largest cause of preventable mortality in England with nearly 75,000 smokers dying from smoking in 2019 and figures show nearly one in 10 pregnant women are smoking at the time of delivery.

    An end to smoking is possible—but the widest range of harm reduction products, from nicotine vapes and heated tobacco products to non-tobacco nicotine pouches and Swedish-style snus, should be available, accessible, appropriate and affordable to all.

    Continuing to drive down smoking rates is crucial if the U.K. government is to tackle the health disparities caused by smoking that currently see a disproportionate burden falling on the most disadvantaged families and communities. Smoking rates vary significantly across the country—for example in Blackpool about one in five people smoke (19.8 percent), compared to about one in 20 in Richmond upon Thames (6 percent). Rates are also very high among people who experience drug and alcohol problems (56 percent of those entering treatment smoke), people who are homeless (of whom 77 percent in England smoke) and people who live with mental health problems (of whom 26.8 percent in England smoke).

    But adopting tobacco harm reduction will not just help the U.K. counter the impacts of smoking, according to KAC. It has huge potential as a global public health solution. Smoking is responsible for 7.7 million deaths a year and current tobacco control measures are failing to reduce the death and disease caused by smoking fast enough.

    Translated into Spanish, Russian, Mandarin, French, Portuguese, Indonesian, Swahili, Japanese, German, Polish, Hindi and Arabic, this GSTHR briefing paper is intended to start conversations in countries across the world where harm reduction has yet to be recognized.

    “An end to smoking is possible—but the widest range of harm reduction products, from nicotine vapes and heated tobacco products to non-tobacco nicotine pouches and Swedish-style snus, should be available, accessible, appropriate and affordable to all,” said Gerry Stimson, director of KAC and emeritus professor at Imperial College London.

    “Strong government support is also needed to ensure access for marginal and vulnerable groups. The gains will be evident in the lives saved and the communities protected. Crucially, tobacco harm reduction is an extremely low cost yet effective strategy—a rare example of a health intervention that doesn’t require significant government expenditure, as consumers bear the cost. An end to smoking is possible—and tobacco harm reduction is the key.”

  • ITC Reports Strong Fiscal Year

    ITC Reports Strong Fiscal Year

    Photo: Wirestock

    ITC reported gross revenue of INR591.01 billion ($7.62 billion) for the fiscal year that ended March 31, 2022, up 22.7 percent over the previous fiscal year. The company’s earnings before interest, taxes, depreciation and amortization were up 22 percent, to INR189.34 billion, while profit before tax was INR198.3 billion, 15.5 percent more than in the previous year. Profit after tax was INR150.58 billion, compared with INR130.32 billion a year earlier.

    According to ITC, the operating environment during the year was marked by heightened uncertainty and volatility due to the Covid-19 pandemic, along with unprecedented inflationary headwinds. Geopolitical tensions towards the end of the year exacerbated the situation.

    “In spite of significant disruptions during the year, the company’s consumer-centricity, agility in seizing market opportunities, focus on execution excellence harnessing learnings from previous waves and proactive strategic interventions enabled it to post robust growth in revenues and profits, surpassing pre-pandemic levels,” ITC wrote in statement.

    After a challenging fiscal year 2020-2021, and despite repeated disruptions this year, ITC’s cigarette business progressively recovered on the back of improved mobility and easing of restrictions, surpassing pre-pandemic levels in the latter half of the year. According to ITC, the business effectively leveraged institutional strengths, digital technologies and learnings from previous waves to respond with agility across all nodes of operations. This included, reconfiguring and realigning supply chain operations to service market requirements through dynamic planning, strengthening direct reach in target markets across all traditional trade channels and augmenting the network to service rural and semi-urban markets efficiently.

    ITC says the cigarette business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments and enhancing product availability backed by superior on-ground execution.

    The company introduced several new brand variants to cater to continuously evolving consumer preferences. New launches during the fiscal year included Classic Connect, Gold Flake Neo SMART Filter, Wills Protech, Capstan Excel, American Club Smash, Gold Flake Kings Mixpod, Gold Flake Indie Mint, Wave Boss and Flake Nova.

    Meanwhile, ITC says it continues to modernize its manufacturing facilities by introducing contemporary technologies towards securing higher levels of productivity, product excellence and driving innovation. “New benchmarks were set in areas of quality, sustainability, supply chain responsiveness and productivity,” the company wrote in its financial release. “Cutting-edge technologies such as Industry 4.0 and Data Sciences were leveraged to build a smart manufacturing environment of connected systems.”

  • Vapers Petition Lawmakers to Stop Swedish Flavor Ban

    Vapers Petition Lawmakers to Stop Swedish Flavor Ban

    WVA Director Michael Landl holds an open letter to the Swedish parliament about the benefits of vape flavors. (Photo: WVA)

    The global vaping advocacy group World Vapers Alliance (WVA) on May 24 delivered an open letter to the Swedish parliament urging policymakers to stop a pending ban on flavors

    A day later, the WVA marched in front of the Parliament with the slogan “Flavours help smokers quit” and urged lawmakers to vote against the ban.

    Earlier this year, the Swedish government introduced a bill that would prohibit all non-tobacco vape flavors in nicotine and non-nicotine products. If approved, the bill is set to enter into force on Jan. 1, 2023.

    “I benefited firsthand from vaping and managed to stay smokefree for the last few years,” said Michael Landl, director of the WVA, in a statement. “Like most other smokers, I tried to find a way out of cigarettes—but nothing worked for me—the patches, the gums, the inhalers. Vaping—and especially combined with flavors—was my savior. And like me there are millions around the world who are healthier and lead a better life because of vaping.”

    According to Landl, the ban on vape flavors will have disastrous consequences on public health:

    “According to Yale School of Public Health, vaping flavored e-cigarettes are associated with a 230 percent increase in the odds of adult smoking cessation,” he said. “If vape flavors were banned, more than 150.000 swedes could be pushed back to smoking, which goes against any public health authority.”

  • Hong Kong Smoking Drops to Single Digits

    Hong Kong Smoking Drops to Single Digits

    Photo: sezerozger

    Hong Kong’s smoking rate dropped to 9.5 percent in 2021, for the first time hitting single-digits, reports The Standard, citing a survey by the city’s Census and Statistics Department. In 2019, 10.2 percent of Hong Kong’s population smoked.

    The survey results showed that there were some 581,500 daily conventional cigarette smokers in 2021, accounting for 9.5 percent of all persons aged 15 and over in Hong Kong.

    The survey also found daily conventional cigarette smokers consumed on average about 13 sticks of conventional cigarettes a day, the same as that in 2019.

    Despite the drop in overall tobacco use, the number of people using e-cigarettes surged from 7,200 in 2019 to 17,500 last year.

    The number of people using alternative smoking products is likely to decrease in the wake of Hong Kong’s ban on the import, manufacturing, sale and distribution of electronic cigarettes and heated tobacco items, which took effect April 30.

    Health secretary Sophia Chan Siu-chee said that Hong Kong aims to lower the smoking rate to 7.8 percent by 2025. To achieve this, the government is considering expanding statutory nonsmoking areas, reducing the overall attractiveness of tobacco products and preventing young people from developing smoking habits.