Category: Featured

Mexico Senate OKs New Tobacco Restrictions

Photo: JustLife
The Senate of Mexico on Dec. 14 approved amendments to the General Law on Tobacco Control that include a complete ban on tobacco advertising, promotion and sponsorship. They also prohibit smoking and vaping—including the use of heated tobacco products—in any indoor public spaces, as specified by the World Health Organization Framework Convention on Tobacco Control, which Mexico ratified in 2004.
Once the law is referred to the President and published, Mexico will become 100 percent smoke-free and join a community of 23 countries in the Americas that entirely ban indoor smoking.
Anti-smoking activists welcomed the development. “We applaud President Andrés Manuel López Obrador and the head of the Undersecretariat of Prevention and Health Promotion at the Mexican Secretariat of Health, Dr. Hugo López-Gatell, for playing a pivotal role in the approval of the reform, and all the deputies, senators and government officials for protecting the health of their people and standing up to the tobacco industry’s persistent interference,” the Campaign for Tobacco-Free Kids wrote on its website.
December 16, 2021
FDA Nominee Vows to Close Synthetic Nicotine Loophole
Robert Califf
Robert Califf vowed to close the synthetic nicotine loophole if appointed commissioner of the U.S. Food and Drug Administration, according to a report by Vaping360.
During Califf’s nomination hearing on Dec. 14, Wisconsin Senator Tammy Baldwin expressed concern over reports that companies are switching to making flavored synthetic nicotine products in the wake of FDA marketing denial orders.
“As FDA commissioner, how would you work to address the rise in youth use of synthetic nicotine, and will you commit to working with Congress to ensure that the FDA has the authorities and resources it needs to crack down on these products?” Baldwin asked.
In response, Califf first noted that is crucial to appoint the right person to succeed Center for Products Director Mitch Zeller, who plans to retire in April 2022.
“Secondly,” Califf continued, “this is not limited to children. I may have some family members using synthetic nicotine, I learned as I was going through the paces here. And what people don’t realize is that there are two enantiomers of nicotine—one of which is not occurring in nature—that are in this product, and its properties are not known.
“So we’ve got to close this loophole,” Califf added, “so that we make sure that we understand the risks and benefits, and particularly deal with the issues in children.”
The Senate Health, Education, Labor & Pensions Committee will vote soon on whether to recommend Califf’s nomination to the full Senate. If the committee approves him, the former commissioner can expect full Senate confirmation to be the new commissioner soon, probably in January.
December 15, 2021
22nd Century, Aurora and Cronos License Biosynthesis IP

Photo: contentdealer
Aurora Cannabis together with 22nd Century Group announced a three-way nonexclusive agreement to license biosynthesis intellectual property to Cronos Group, intended to assist in the advancement of research and development on the biosynthesis of cannabinoids.
“We are deeply interested in the evolution of cannabinoids, and this is a promising step toward the commercialization of cannabinoid products using biosynthesis,” said Miguel Martin, CEO of Aurora. “The long-term potential for rare cannabinoid molecules produced through biosynthesis is incredibly promising given their efficient production methods and potential therapeutic benefits and utility in health, wellness and consumer products.”
“This license combines the resources and intellectual property of all three companies in this agreement intended to facilitate the commercial success of a biosynthetic approach, which complements the disruptive plant-based advancements 22nd Century and Aurora continue to develop to bring more consistent and higher yields to the hemp and cannabis industry,” said James A. Mish, CEO of 22nd Century Group, in a statement. “We believe that the availability of both plant-based and biosynthetic cannabinoids will be important to the commercial success of our industry, and this agreement positions 22nd Century, Aurora and Cronos Group with an important role in each approach.”
“Cronos Group has successfully commercialized the first cultured cannabinoid product in Canada. Licensing this intellectual property provides us with a component of the process that could allow for increased speed and efficiency in the development and commercialization of cultured cannabinoids,” said Kurt Schmidt, president and CEO of Cronos Group.

December 15, 2021
KKR Acquires Stake in Körber Supply Chain Software Unit

Photo: Blue Planet Studio
Global investment firm KKR has acquired a significant minority stake in supply chain software business of the Körber Group, the parent company of tobacco machinery maker Hauni Maschinenbau.
This strategic partnership is expected to enable Körber’s supply chain software business to become a global leader with enhanced end-to-end solutions for customers worldwide. Financial terms of the transaction were not disclosed.
Körber’s supply chain software business is among the top three global warehouse management software providers, delivering customers with differentiated warehouse management solutions (WMS) for varying operational complexities through software, voice and robotics solutions. With more than 1,300 employees, the business has grown significantly over recent years, serving a diversified mix of more than 4,200 customers in different industries across over 70 countries.
KKR will work with Körber’s supply chain software business to pursue organic and inorganic growth strategies to expand the company’s geographic footprint, accelerate the transition to SaaS, automation and robotics, as well as to develop innovative digital solutions to support customers amid increasing warehouse automation and supply chain localization.
“I’m excited about this strategic partnership and the tremendous business opportunities evolving out of it,” said Stephan Seifert, CEO of the Körber Group, in a statement. “It is in Körber’s DNA to identify and develop attractive growth areas. With our supply chain software offerings, we strive to have a rich end-to-end application suite that provides enhanced software solutions to our customers all around the world. With KKR we have found a great business partner to accelerate our growth for supply chain software across additional products and regions. Always with one clear vision: market leadership through technology leadership for the benefit of our customers.”
The transaction is subject to customary closing conditions and regulatory approvals.
December 15, 2021
Immunity Waiver Clears Path for Dalli Trial

Photo: Kirill Ryzhov
The European Commission waived John Dalli’s immunity from prosecution, allowing the court case against him to begin, reports The Independent.
“The commission can confirm that, on the request of the attorney general of Malta, the commission has waived the immunity of former Commissioner John Dalli,” a European Commission spokesperson said.
Dalli’s aide Silvio Zammit allegedly tried to obtain a €60 million ($71.17 million) bribe from Swedish Match to reverse the EU ban on snus (the company rejected the offer as improper and reported it to the European Commission). Dalli was the European commissioner for health at the time, in charge of managing reforms to the EU’s tobacco rules.
The European Commission forced Dalli to quit in 2012 due to the scandal after the EU’s anti-fraud office uncovered the bribery attempt. Zammit was charged in December 2012 for trading influence and complicity in the request.
Dalli insists the case is an orchestrated scheme created the “corrupt” media.
The case is set to begin on Dec. 21.
December 15, 2021
Universal Releases 2021 Sustainability Report
Universal Corp. has released its 2021 Sustainability Report.
“At Universal, sustainability has long been part of how we conduct business. We are committed to disclosing our operational activities as well as our sustainability performance consistently and in a transparent manner,” said George C. Freeman III, Universal’s chairman, president and CEO.
“We are excited about our sustainability goals and targets outlined in this report and will continue to build upon our global programs to reinforce the sustainability of our supply chains.”
Universal’s 2021 Sustainability Report focuses on the company’s material sustainability topics as well as environmental, social and supply chain goals. Data disclosed in the report reflects activities from April 1, 2020, to March 31, 2021.
December 15, 2021
Indonesia to Raise Tobacco Excise in 2022

Photo: Taco Tuinstra
Indonesia will raise the excise tax rate for tobacco products by an average of 12 percent in 2022, reports The Jakarta Post.
The increase will be greater for machine-made cigarettes than hand-rolled cigarettes, which will see a maximum 4.5 percent hike.
Mulyani Indrawati said the decision took into account the government’s target to reduce smoking among youth, the tax measure’s impact on jobs in the tobacco industry and the effect on state revenues.
December 14, 2021
KT&G Suspends U.S. Operations
KT&G Corp. is suspending its tobacco business in the United States for an unspecified period, reports The Korea Herald, citing a regulatory filing by the firm.
“We need to conduct a review of our business in the U.S. amid intensifying regulations over tobacco and growing competition,” the company said.
Among other challenges, KT&G cited the Food and Drug Administration’s intention to mandate lower nicotine limits for cigarettes sold in the U.S.
Such a move would cost the company an estimated KRW205.8 billion ($174 million) in lost sales, amounting to around 3.9 percent of the company’s overall sales revenue for last year, according to KT&G.
KT&G also pointed to mandatory tobacco escrow accounts for smoking-related legal settlements as reason for its decision.
“We will reconsider our business strategy in the U.S. after reviewing the business environment and regulations,” a company official said.
December 14, 2021
Philippines Cracks Down on Unregistered Brands

Photo: Negro Elkha
The Philippines’ The Bureau of Internal Revenue (BIR) has ordered its field officers to seize unregistered cigarette names in a bid to curb smuggling, reports The Manilla Bulletin.
BIR Commissioner Caesar R. Dulay provided regional and district offices with an official list of cigarette brands with their corresponding producers and importers.
“Any product not included in the list shall be considered unauthorized subject to seizure in accordance with existing rules and regulations,” said Dulay.
Dulay also instructed producers and importers to register their new products before launching them in the market.
“Newly registered products will be included in the updated list of products in the BIR website within 30 days from the date of registration,” he said.
Cigarette manufacturers have been complaining for years about revenue losses due to rampant distribution and sale of untaxed cigarettes.

December 14, 2021
Vector Approves Douglas Elliman Spinoff

Photo: AliFuat
Vector Group’s board of directors has approved the spin-off of Douglas Elliman, which is expected to be completed in late December.
Upon completion of the spin-off, Vector Group will operate the tobacco segment of its business, which includes the manufacture and sale of cigarettes in the United States through Vector Group’s subsidiaries Liggett Group and Vector Tobacco, while also continuing to own interests in numerous properties and real estate projects across the United States.
Douglas Elliman will own and operate the real estate services and property technology investment business currently owned and operated by Vector Group through its subsidiary New Valley and will be capitalized with approximately $200 million in net cash and cash equivalents.
“The board’s approval of the spin-off paves the way for us to establish Douglas Elliman as an independent publicly traded company in the coming weeks,” said Howard M. Lorber, president and CEO of Vector Group and chairman, president and CEO of Douglas Elliman, in a statement. “We are confident this separation is in the best interests of Vector Group, Douglas Elliman, our stockholders and all our stakeholders.”
The distribution is expected to take place on Dec. 29, 2021, to holders of Vector Group common stock of record as of the close of business on Dec. 20, 2021, the record date for the distribution.
December 13, 2021