Category: Featured

Hausmann Retires From Pyxus International

Photo: jovannig | Adobe Stock
Carl L. Hausmann intends to retire from the Pyxus International’s board of directors effective as of the 2022 annual shareholders meeting, according to a company press release.
Hausmann was appointed to Pyxus’ board of directors in October 2020 and serves on the environmental, social, governance and nominating committee as well as the audit committee. Additionally, Hausmann served as a member of the board of directors of Pyxus International’s predecessor, Alliance One International, from June 2013 to August 2018.
“On behalf of the board of directors, as well as Pyxus’ management team, we thank Carl for his guidance and many contributions over the years,” said Pyxus President and CEO Pieter Sikkel. “His extensive experience in the agricultural industry, thorough understanding of our operations and support of our ESG framework has been instrumental in establishing the foundation necessary to position Pyxus for success moving forward. It has been a privilege to work with Carl during both of his board appointments, and we wish him all the best in the years to come.”
The board of directors plans to fill Hausmann’s seat with an independent director, though this may not occur until after the company’s 2022 annual shareholders meeting.
May 6, 2022
Litigants Agree on Corrective Statements

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The parties to the U.S. government’s long-running racketeering lawsuit against the major tobacco companies have reached an agreement in principle that will require the companies to place “corrective statements” about the health risks of smoking and secondhand smoke in retail outlets that sell cigarettes, according to the Campaign for Tobacco-Free Kids.
Once this agreement is finalized and approved by the court, it will require the tobacco companies to display court-ordered statements detailing the adverse health impacts of smoking near cigarette displays in hundreds of thousands of retail outlets across the country.
On May 4, the parties to the case—the U.S. Department of Justice, the tobacco companies and our six public health groups—filed a joint motion with the U.S. District Court for the District of Columbia that briefly describes the terms of the agreement, which will soon be put in final form and submitted to the court for review and approval.
This agreement will resolve the biggest remaining legal issue in the longstanding tobacco racketeering lawsuit and fully implement the corrective statements U.S. District Judge Gladys Kessler ordered in 2006 when she issued her landmark judgment against the major tobacco companies.
Judge Kessler found that the tobacco companies had violated civil racketeering laws (RICO) and engaged in a decades-long conspiracy to deceive the American public about the health effects of smoking and their marketing to children. To prevent and restrain future RICO violations, Judge Kessler ordered the tobacco companies to publish corrective statements that tell the American public the truth about the adverse health effects of smoking and secondhand smoke.
The corrective statements have previously been published through newspaper and television advertisements and cigarette pack inserts, and they continue to appear on tobacco company websites. However, the tobacco companies and various trade associations representing cigarette retailers have challenged Judge Kessler’s requirement that the corrective statements also be displayed at retail points-of-sale, such as convenience stores and tobacco outlets. The proposed agreement would resolve that issue.
Public health groups welcomed the agreement. “We are pleased to see this important next step taken to ensure that the tobacco industry carries out the court’s order to issue corrective statements after being found guilty of deceiving the American people more than two decades ago,” said Karen E. Knudsen, CEO of the American Cancer Society and the American Cancer Society Cancer Action Network, in a statement.
May 6, 2022
Australia Mulls Higher Minimum Tobacco Age

Photo: Taco Tuinstra
Australia may raise the minimum age for cigarette purchases, if recommendations from the draft 2022-2030 national tobacco strategy are accepted, reports the Daily Mail.
The current minimum age to buy tobacco products is 18.
The new policy proposal comes as a national survey, conducted by the Cancer Council, revealed that most Australians would support a policy that stops retailers from selling cigarettes completely.
In a recent survey conducted by Cancer Council Victoria, 50.8 percent of participants supported a phase-out, and an overwhelming majority of 61.8 percent said it should happen within the next decade.
Australia is already home to the most expensive cigarettes in the world, with a typical 20-stick pack costing $40. The Australian government rakes in about AUD17 billion ($12.06 billion) in tobacco tax each year. The high prices are believed to have contributed to a significant illicit market for tobacco products. The illegal tobacco trade is worth about $600 million annually, according to Border Force.
In December, New Zealand banned young people from ever being allowed to buy cigarettes in a rolling scheme that aims to make the entire nation smoke-free. People aged 14 and under in 2027 will never be allowed to buy cigarettes in their lifetime under the new law.
May 6, 2022
PMI Holds 2022 Annual Meeting

Photo: PMI
Philip Morris International held its 2022 annual meeting of shareholders on May 4. André Calantzopoulos, executive chairman of the board, addressed shareholders and answered questions. CEO Jacek Olczak gave the business presentation, which included an overview of PMI’s financial performance and its efforts to support employees impacted by the war in Ukraine, along with an update on the company’s progress in its smoke-free transition and investments in the wellness and healthcare categories.
“The recent months have been an extremely challenging time for many in the PMI family given the war in Ukraine. Our primary concern is for our people and their families, and we are doing everything in our power to help them,” said Olczak in a statement.
“Despite this tragic situation, and the related impacts on our operations in the region and more broadly, the outlook for our business excluding Russia and Ukraine remains strong and our smoke-free ambition remains intact. We are off to a strong start to the year, following an excellent performance in 2021, with robust underlying momentum and a reacceleration in IQOS user growth.
“We continue to prioritize returns to shareholders and have increased the dividend for 14 consecutive years since the 2008 spin. In 2021, we raised the dividend by 4.2% to an annualized rate of $5.00 per common share. In addition, since July 2021, we have repurchased approximately $1 billion in shares as part of our current three-year program.”
Approximately 81 percent of the shares entitled to vote were represented at the meeting in person or by proxy. The shareholders elected 14 nominees for director; approved, on an advisory basis, the compensation of named executive officers; approved the 2022 performance incentive plan; ratified the selection of PricewaterhouseCoopers as independent auditors; and voted against a shareholder proposal. Final voting results will be included in a Form 8-K that PMI will file with the SEC in the coming days.
An archived copy of the webcast of the meeting will be available for approximately one year from the date of the meeting at http://www.virtualshareholdermeeting.com/PMI2022.
May 5, 2022
ALD Group to Launch Biodegradable Vape Next Year

Photo: Timothy Donahue
ALD Group Limited (ALD) is set to launch the first biodegradable vaping product worldwide in mid-2023, the company announced at today’s In Focus event. The product will also be 90 percent recyclable (including the packaging, plastic shell, PCBA, mouthpiece and battery).
Currently named the Eco-friendly, Biodegradable Vape Solution (EBVS), the new device will take as little as three months to biodegrade, and was created in response to consumer and market demand.
Founded in 2009 and headquartered in Shenzhen, China, ALD is a high-tech enterprise specializing in electronic atomization technology research and applications. ALD′s business covers electronic nicotine delivery systems, inhaled medical vaporizer and heated tobacco products.
The plastic components in ALD’s eco-friendly vape solutions use innovative biodegradable raw materials like PBS, and the shell and structural parts do not come into contact with e-liquid; addressing the challenge of vaping producers whose single-use plastic pod products cannot be recycled due to the residues left over from e-liquids.
“The innovative factor is that our extensive research showed that in the e-cigarette sector there was currently no ready-made solution for the application of biodegradable materials,” said Eric Ding, founder and president of ALD Group.
“During development, we screened dozens of materials, repeatedly verified product performance and, finally, determined the seven best mixes of materials. Our processes included the verification of material strength, chemical resistance, extractability and degradability.”
The engineering validation and testing evaluation of its new device was completed in mid-2021, and the shelf life and biodegradability testing are expected to be completed in mid-2022.
Tobacco Reporter profiled ALD’s environmental efforts in its May 2022 print edition (see “Combating Waste).
May 5, 2022
22nd Century Reports Quarterly Results

Photo: 22nd Century Group
22^nd Century Group reported net sales of $9 million for the first quarter of 2022, up 33 percent from the comparable 2021 quarter. The increase was due to increased contract manufacturing volumes in both filtered cigars and cigarettes, including products for export markets and pricing adjustments.
Gross profit for the first quarter was $500,000, compared to $600,000 million in the prior year first quarter. Gross margin in the first quarter was reduced by lower research cigarette sales volume compared with the prior year, and a Master Settlement Agreement adjustment of $200,000 recorded in the quarter.
Operating loss for the first quarter 2022 was $8.1 million, compared to an operating loss of $5.2 million in the prior year period. Net loss was $8.9 million.
“We are off to an exciting start with our VLN reduced nicotine content cigarette pilot launch at more than 150 Chicagoland Circle K stores,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.
“The recently proposed menthol cigarette ban by the FDA could leave our VLN Menthol King reduced nicotine cigarettes as the only menthol cigarette on the market, helping adult menthol smokers find an off-ramp from nicotine addiction. Early sales in our Chicago pilot affirm the importance of this approach, with sales of VLN Menthol King already selling ahead of non-menthol in pilot stores. We fully anticipate an even more favorable regulatory environment as the FDA continues to advance the agency’s comprehensive plan, which includes requiring all cigarettes to be ‘minimally or non-addictive,’ a standard our VLN King and VLN® Menthol King cigarettes already meet.”
May 5, 2022
Scandinavian Tobacco Reduces Share Capital

Photo: Scanrail
Participants in the March 31 annual general meeting of Scandinavian Tobacco Group adopted a proposal by the board of directors to reduce the company’s share capital by nominally DKK4.5 million ($638,224) from nominally DKK97.5 million to nominally DKK93 million by canceling some of the company’s treasury shares.
On May 4, the board of directors resolved to complete the capital reduction, and the reduction of the share capital has been registered with the Danish Business Authority.
Following the capital reduction, the company’s share capital amounts to nominally DKK93 million divided into 93 million shares of DKK1 each. The total number of voting rights is 93 million.
The updated Articles of Association can be found on the company’s website.
May 5, 2022
FDA Accepting Comments on Menthol and Flavored Cigars

Photo: koszivu
The U.S. Food and Drug Administration is now accepting comments to its proposed rules prohibiting menthol cigarettes and characterizing flavors in cigars.
To comment on the proposed menthol product standard, click here.
To comment on the proposed flavored cigar product standard, click here.
The public may provide comments on these proposed rules through July 5.
May 4, 2022
VTA and FDA Discuss Synthetic Nicotine

Photo: pressmaster
The Vapor Technology Association (VTA) met with officials of the U.S. Food & Drug Administration’s Center for Tobacco Products (CTP) on May 2 to help clarify issues relating to synthetic nicotine. Premarket tobacco product applications (PMTAs) for synthetic products are due on May 14.
“We presented a thoughtful case for synthetic nicotine products that, to our knowledge, had not yet been made to any policy maker,” the VTA wrote in a press note.
During the meeting, scientists explained how synthetic nicotine is manufactured and how it differs from tobacco-derived nicotine. Expert speakers included Bill Jackson, (organic chemistry), David Johnson (physical analytical chemistry), Ray McCague, (organic chemistry), and Willie McKinney (inhalation toxicology).
This is the VTA’s second meeting with the FDA following the signing into law of new legislation governing synthetic nicotine. While pleased with the level of engagement from the CTP, the VTA stressed its work continues.
“These meetings, and the additional meetings that we are working on, are just part of VTA’s multi-pronged strategy to ensure the proper and full assessment of synthetic nicotine PMTAs,” the VTA wrote.
“If your company is manufacturing products containing synthetic nicotine and is serious about regulatory compliance, or if your retail operation wants the ability to continue to diversify its retail offerings with synthetic nicotine products, or if you want to have continued access to innovative products containing synthetic nicotine, you should strongly consider being engaged in our strategic efforts.”
May 4, 2022
Keagan Lenihan Joins PMI as Vice President

Photo: akub Jirsák | Dreamstime.com
Philip Morris International has appointed Keagan Lenihan as vice president of government affairs and public policy, and head of its D.C. office. Lenihan will serve as the Washington, D.C., lead for PMI’s U.S.-based external affairs efforts as the company continues to advance on its journey away from cigarettes, reporting to members of the company’s senior management team in the U.S. and globally.
Lenihan joins PMI from Altoida, a medical device company that uses artificial intelligence and augmented reality technologies to predict neurological disease, where she served as vice president of operations. Over the previous two decades, she worked in government and corporate and public policy, most recently as associate commissioner for external affairs and strategic initiatives and then chief of staff of the U.S. Food and Drug Administration.
In these positions, she oversaw daily management of the agency and provided strategic direction to senior leadership on policy priorities, including efforts to promote medical product innovation, tackle opioid abuse, identify solutions to prescription drug shortages, and pursue a comprehensive plan for tobacco regulation, with an emphasis on preventing youth use of tobacco products.

We are thrilled that Keagan will be joining us to further accelerate PMI’s journey toward a smoke-free future.
Deepak Mishra, president of PMI Americas
“We are thrilled that Keagan will be joining us to further accelerate PMI’s journey toward a smoke-free future,” said Deepak Mishra, president of PMI Americas. “Her passion for and expertise in healthcare, life sciences, and policy issues and her commitment to help our company reach the next phase in its ambitious transformation away from cigarettes make her an ideal addition to our global leadership team.”
Prior to serving at the FDA, Lenihan was senior counselor to the secretary of health and human services, overseeing an extensive portfolio of policy initiatives and reforms, including comprehensive drug pricing reform, price transparency, and regulatory reform. Before that, she was special assistant to the president, charged with managing hiring for the U.S. Department of Health and Human Services, Department of Education, Department of Housing and Urban Development, Department of Labor, and Office of Personnel and Management.
Earlier, Lenihan was senior director of government relations for McKesson Specialty Health. She also worked for almost a decade on Capitol Hill, serving three members of Congress who held positions in House leadership, as well as senior members of the Ways and Means and House Rules committees.
“Having spent two decades working to improve public health, I am delighted to join forces with PMI in their mission to move away from cigarettes and help current smokers who otherwise would not quit switch to less harmful alternatives while ensuring we protect youth,” said Lenihan in a statement. “PMI is not just transforming its business; with its smoke-free commitment, it is revolutionizing its industry and championing an unprecedented breakthrough for public health, including moving beyond nicotine to meet patient and consumer needs in the wellness and life sciences spaces. I’m excited to have been invited to play a role in making this happen even faster.”
May 3, 2022