Category: Featured

  • Janakpur Factory Mulls Restart of Operations

    Janakpur Factory Mulls Restart of Operations

    Smokers enjoying cigarettes in the center of Kathmandu (Photo: Taco Tuinstra)

    The Janakpur Cigarette Factory (JCF) in Nepal has called an annual general meeting on Jan. 9 to explore the possibility of restarting production, reports My Republica.

    Built in 1965 as a gift from the Soviet Union, the factory grew into a local market leader but then withered away due to competition, political interference and mismanagement. Unwilling to shoulder the financial burden, the government closed JCF in 2013.

    The Ministry of Finance recently created a task force led by to resume production at the factory. The panel, among other things, has been tasked to estimate the cost of operating the factory.

    The primary goal of the Jan. 9 is to settle the financial liabilities incurred by JCF since fiscal year 1999-2000.

    This is not the first time the government of Nepal has attempted to resume production at JCF. In 2011, a study panel formed under Joint Secretary Ramesh Sthapit also underscored the possibility of bringing the factory back to life, but no action was taken.

    A 2015 plan to restart operations similarly failed.

    According to government records, JCF owns land and buildings in 26 locations. The factory’s properties are valued at more than NPR8 billion ($66.66 million).

  • Call for Lower Taxes in Bosnia and Herzegovina

    Call for Lower Taxes in Bosnia and Herzegovina

    Photo: Ahmed

    The government of Bosnia and Herzegovina should consider reducing its tobacco excise taxes to help tackle the flourishing illegal cigarette trade, according to Svetozar Mihajlovic, director of AD Duvan.

    Bosnia and Herzegovina levies a 90 percent tax on the retail price of tobacco products—above the 80 percent recommended by the European Union, where the average consumer has a much higher disposable income.

    “It is a huge amount of tobacco that ends up on the black market, and the state, unfortunately, has not done anything about it yet,” Mihajlovic said in The Sarajevo Times.

    . “They only increased excise taxes, and by increasing excise taxes they created an abnormal situation on the market and that led to the black market being dominant in this territory.”

    Poor excise and agrarian policies have brought Bosnia and Herzegovina’s tobacco industry to the brink of collapse, according to observers.

    In the 1970s, the region produced 25,000 tons of tobacco. This declined to about 10,000 tons in the 1990s, and today local farmers grow only about 500 tons per year—a significant share of which ends up in illicit cigarettes.

  • Spain to Ban Smoking on All Beaches

    Spain to Ban Smoking on All Beaches

    Photo: G215

    Spain will ban smoking on all beaches reports The Daily Mail. Violators risk fines of up to €2,000 ($2,264.52).

    The national law aims to combat pollution caused by cigarette butts on the country’s 3,000 miles of coastline.

    The measure was introduced by a green party following a petition signed by more than 283,000 people and delivered to the government requesting a change to the law.

    Several Spanish regions, including Barcelona and the Canary islands, have already introduced similar smoking bans on beaches.

    Other regions in Europe have also banned smoking on beaches, including some areas of southern France and Sardinia.

    However, Spain’s nationwide ban is the first of its kind in Europe.

  • Tobacco Mogul Cleared From Extremism Report

    Tobacco Mogul Cleared From Extremism Report

    Tribert Rujugiro Ayabatwa (Photo: Pan African Tobacco Group)

    Tribert Rujugiro Ayabatwa, an industrialist with ties to the tobacco industry, has welcomed the removal of his name from a report linking him to extremism and illicit trade in Africa.

    The April 2021 report, “An Unholy Alliance: Links Between Extremism and Illicit Trade in East Africa,” contained references to Tribert Rujugiro Ayabatwa and his PTG group of companies.

    Through his legal counsel, Ayabatwa made representations to the legal counsel for the report’s author, Sir Ivor Roberts, as to Ayabatwa’s history as a Pan-African industrialist and philanthropist operating across Africa and the United Arab Emirates. All references to Ayabatwa in the Roberts’ report have now been removed.

    Ayabatwa welcomes this development and is happy to put this matter behind him.

    “Regrettably, due to the complexity in the persisting instability and conflict in eastern and central Africa, it is nearly impossible for foreign researchers and analysts to fully grasp positive and negative actors in the region,” said Senior Advisor David Himbara.

    “In Ayabatwa’s case, for example, his Congo Tobacco Company has been the only manufacturing business operating in the eastern Democratic Republic of Congo for over four decades. The company is one of the few providers of legitimate employment opportunities in a region devastated by instability and war. It is therefore ironic that Ayabatwa was lumped together with illicit trade and extremism in the Unholy Alliance: Links Between Extremism and Illicit Trade in East Africa report penned by Sir Roberts. “

    Tribert Rujugiro Ayabatwa is the founder and controlling shareholder of the Pan African Tobacco Group, Africa’s largest indigenous manufacturer of tobacco products. The company, which in 2018 celebrated its 40th year of operations, manufactures cigarettes in Angola, Burundi, the Democratic Republic of Congo, Nigeria, South Sudan, Tanzania, Uganda and the United Arab Emirates.

    Ayabatwa is also one of Africa’s leading philanthropists, according to a press release put out by him. He has invested in education, food security, afforestation and water-access. Through his non-profit foundation, Ayabatwa strives to help young people to gain the practical engineering experience required to enter the job market in Africa. More recently, Ayabatwa assisted governments in the battle against the Covid19 pandemic by contributing medical equipment and foodstuffs during the lockdowns.

    Tobacco Reporter profiled the Pan African Tobacco Group in August 2013.

  • Switzerland to Debate Vapor Tax Plan

    Switzerland to Debate Vapor Tax Plan

    Photo: Stockfotos-MG

    Switzerland’s Federal Council has put forward a plan to tax e-liquids, reports Le News, citing Radio Television Suisse.

    The proposal calls for taxing e-liquids at a rate that is 77 percent lower than that levied on combustible cigarettes.

    The government wants to discourage young people from taking up vaping without discouraging smokers from transitioning to less unhealthy products.

    One idea is to tax the nicotine content in e-cigarette liquids for open systems. This would mean taxes rising with rising nicotine content. For single use e-cigarettes or devices using cartridges, the tax would be levied based on the quantity of liquid contained in them regardless of the nicotine contained in them.

     According to the government, such a tax would be easy to put in place and would generate around CHF 15.5 million a year, money which would be used to help fund old age pensions and disability benefits.

    The Federal Council’s proposal, which will be discussed until March 31, 2022, responds to a motion approved by the parliament and the Council of States in March 2021.

  • Zimbabwe: Tobacco Hectarage up

    Zimbabwe: Tobacco Hectarage up

    Photo: Taco Tuinstra

    In the 2021/2022 growing season, hectarage of tobacco planted in Zimbabwe was up 9 percent to 43,389 ha compared to 39,488 ha during the previous year, reports The Chronicle.  

    According to the Tobacco Industry and Marketing Board, 16,836 ha were for irrigated tobacco compared to 15,170 ha the year before while 26,253 ha were for tobacco under dry land compared to 24,318 ha previously.

  • Moroccan Cigarette Prices to Rise in 2022

    Moroccan Cigarette Prices to Rise in 2022

    Photo: evannovostro

    Morocco is increasing prices on cigarettes effective Jan. 1, 2022, reports Morocco World News.
     
    The increase will be between one and two Moroccan dirhams for most brands and is likely to affect locally manufactured brands with international brands remaining at their current prices. 
     
    Cigarettes prices may witness further modification six months into the new year following a scheduled meeting of the tobacco products licensing board.
     
    The newly elected government wants to revise the country’s tobacco taxation framework, which is likely to further increase cigarette prices, especially those of e-cigarettes. Tobacco taxes will steadily increase between 2022 and 2026.

  • Modified-Risk Marketing Orders for 22nd Century

    Modified-Risk Marketing Orders for 22nd Century

    Photo: 22nd Century Group

    The U.S. Food and Drug Administration has authorized the marketing of 22nd Century Group VLN King and VLN Menthol King combusted, filtered cigarettes as modified risk tobacco products (MRTPs), which help reduce exposure to, and consumption of, nicotine for smokers who use them. These are the first combusted cigarettes to be authorized as MRTPs and the second tobacco products overall to receive “exposure modification” orders, which allows them to be marketed as having a reduced level of, or presenting a reduced exposure to, a substance.

    “Our mission is to find ways to stop tobacco-related disease and death. We know that three out of four adult smokers want to quit and the data on these products show they can help addicted adult smokers transition away from highly addictive combusted cigarettes,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products, in a statement.

    “Having options like these products authorized today, which contain less nicotine and are reasonably likely to reduce nicotine dependence, may help adult smokers. If adult smokers were less addicted to combusted cigarettes, they would likely smoke less and may be exposed to fewer harmful chemicals that cause tobacco-related disease and death.”

    The exposure modification orders specifically authorize the manufacturer to market VLN King and VLN Menthol King with certain reduced exposure claims regarding nicotine, including:

    • 95 percent less nicotine
    • Helps reduce your nicotine consumption
    • Greatly reduces your nicotine consumption

    When using any of the reduced exposure claims in the product label, labeling or advertising, the company must include, “Helps you smoke less.” The FDA also recommends that the labeling and advertising include the statement, “Nicotine is addictive. Less nicotine does NOT mean safer. All cigarettes can cause disease and death.” The manufacturer is also required to label the packages with one of four warning statements for cigarettes as required by the Federal Cigarette Labeling and Advertising Act; for example, “Surgeon General’s Warning: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy.”

    Having options like these products authorized today, which contain less nicotine and are reasonably likely to reduce nicotine dependence, may help adult smokers.

    In the review of 22nd Century Group’s MRTP applications, the FDA evaluated data from both the company and FDA testing and found that nicotine levels in tobacco and mainstream smoke of VLN cigarettes are at least 96 percent lower than the majority of marketed and market-leading conventional cigarette brands.

    Furthermore, the FDA’s behavioral and clinical pharmacology review found that by exclusively smoking cigarettes with the same or similarly reduced nicotine content as VLN cigarettes, consumers could reduce their exposure to nicotine by approximately 95 percent. The data also showed it is reasonably likely that using these products reduces nicotine dependence, which is anticipated to lead to long-term reductions in exposure to the smoking-related toxicants associated with morbidity and mortality by reducing smoking.

    Published studies have shown that significantly reducing the number of cigarettes smoked per day is associated with lower risk of lung cancer and death, with greater reductions in cigarettes per day resulting in less risk. Additionally, as required for authorization, the FDA found that the applications supported consumer understanding of the claims that VLN cigarettes contain much lower levels of nicotine than other cigarettes. 

    The authorization for these products requires the company to conduct post-market surveillance and studies to determine whether the authorization criteria for these exposure modification orders continue to be met, including assessing use among youth.

    These products are also subject to the post-market requirements and restrictions previously imposed in their December 2019 premarket tobacco product marketing granted orders. In particular, to limit youth access to the products and to limit youth exposure to advertising and promotion, the marketing granted orders placed stringent restrictions on how the products are marketed–especially via websites and through social media platforms—by including requirements that advertising be targeted to adults of legal age to purchase tobacco products.

    The company must request and receive authorization from the FDA to continue marketing the products with the same modified exposure information after the initial exposure modification orders expire in five years. The FDA also may withdraw the initial, and any potential subsequent, exposure modification orders if the agency determines that, among other things, the orders are no longer expected to benefit the health of the population as a whole; for example, as a result of an uptake in use of the products by youth or former smokers, or a decrease in the number of current smokers who completely switch to the products.

    In reaching today’s determination, the FDA considered both the current legal status of menthol cigarettes and the available science demonstrating that these particular products could help addicted cigarette smokers reduce their nicotine consumption and the number of cigarettes they smoke per day. The FDA is committed to moving forward with the rulemaking process to ban menthol as a characterizing flavor in cigarettes and all characterizing flavors in cigars and remains on track to issue proposed rules in the spring of 2022.

    22nd Century Group welcomed the FDA decision. “Today’s decision to authorize VLN’s MRTP application places the FDA and 22nd Century together at the vanguard of transforming the tobacco industry,” said James A. Mish, chief executive officer at 22nd Century Group, in a statement.

    “With 60 percent of adult smokers in our U.S. market research telling us they are likely to try VLN, this is a complete game-changer for 22nd Century, the tobacco industry, public health, and adult smokers looking to change their relationship with nicotine–the addictive chemical found in all tobacco products.

    “This is the first, and most likely will be the only, combustible cigarette to ever carry the FDA’s MRTP designation. The FDA’s decision to require the additional headline claim ‘Helps You Smoke Less’ alongside our requested headline claim of ’95 percent Less Nicotine’ gives adult smokers a crystal-clear reason to replace their conventional and highly addictive cigarettes with VLN.”

  • Industry up in Arms Over Anti-Vaping Report

    Industry up in Arms Over Anti-Vaping Report

    Photo: deagreez

    The U.K. Vaping Industry Vaping Industry Association (UKVIA) has labeled an anti-vaping report in The Lancet “incredulous, laughable, untrue and extremely worrying.”

    The authors of The Lancet article contest the suggestion that e-cigarettes are safer than conventional cigarettes. The U.K. Medicines and Healthcare products Regulatory Agency recently announced plans to allow healthcare providers to prescribe medicinally licensed e-cigarettes for smoking cessation, they write, could prove as harmful as the endorsement of tobacco by physicians between 1920 and 1950.

    “We have the greatest respect for the medical profession but for one of its leading journals to carry an article which states that there is no robust evidence to show that vaping has accelerated smoking cessation is quite unbelievable and completely untrue,” said John Dunne, director general of the UKVIA, in a statement.

    “Worryingly this isn’t just an article questioning the clinical evidence basis for vaping as a harm reduction tool. Everything about it smacks of anti-vaping propaganda starting with the suggestion that the market is all the making of tobacco companies to line their pockets. This is an insult to all the independent companies across the U.K. and globally who make up the vast majority of the players in the sector and who have not just contributed positively to public health by helping 2.4 million former smokers in the U.K. completely quit their habits but have created huge numbers of jobs at the same time and one of the fastest growing industry’s this century, thereby making a massive contribution to our economy. Our membership is testament to this—out of our nearly 100 members, some 95 percent have no affiliation to tobacco companies.

    “Such a highly respected journal as The Lancet should know better when running articles and look at all the evidence that is available and opinions across the healthcare spectrum. Instead, the report which is carried completely ignores research which has clearly shown on more than one occasion vaping to have a hugely positive impact on smoking cessation, and significantly more so than NRTs.

    For one of its leading journals to carry an article which states that there is no robust evidence to show that vaping has accelerated smoking cessation is quite unbelievable and completely untrue.

    “The article’s assertion that the pro-vaping stance of Public Health England contradicts the rest of the world is nothing short of laughable, choosing to ignore the positions of the likes of Cancer Research UK—which says on its website that there is no good evidence that vaping causes cancer—and the Royal College of Physicians who have both publicly recognized the harm reduction opportunity that vaping offers over smoking. The report also ignores large scale research which backs up the public health potential of e-cigarettes, such as the study produced by the British Heart Foundation and the University of Dundee which suggested that vaping may be less harmful to blood vessels than smoking cigarettes.

    “It’s these types of one-sided and misleading articles that leave smokers and vapers confused and questioning the health benefits of vaping versus smoking, leading to them either continuing with or returning to smoking. But, whilst we’re not getting data from hospitals and doctors suggesting that we should be worried about the effects of vaping—and, let’s face it, we would have heard by now given vape products have been available in this country for more than a decade, what is undeniable is that smoking kills—some 78,000 people a year to be exact—and the very death toll that vaping is helping to address. Instead, the report in The Lancet blames the U.K. government for its pro-vaping stance and highlights that they are in danger of presiding over what will be the biggest public health disaster in U.K. history.

    “As a responsible industry, we’re more than up for continued independent clinical research into the long term impact of vaping, to prove once and for all that vaping is the biggest public health prize seen this century.”

  • FDA Releases Draft Guidance on Validation of Test Methods

    FDA Releases Draft Guidance on Validation of Test Methods

    Photo: PMI

    The U.S. Food and Drug Administration on Dec. 21 announced the availability of a draft guidance for the industry titled “Validation and Verification of Analytical Testing Methods Used for Tobacco Products” and is requesting comments, including scientific and other information, concerning the recommendations set forth in the draft guidance. The comment period will continue through Feb. 22, 2022.

    The draft guidance, when finalized, would provide information and recommendations related to the validation and verification of analytical test methods, including analytical testing of tobacco product constituents, ingredients and additives as well as stability testing of tobacco products. This draft guidance would help the industry produce more consistent and reliable analytical data used to support regulatory submissions for finished tobacco products.