Category: Featured

  • Canada to Crack Down on Pouches

    Canada to Crack Down on Pouches

    Photo: JHVEPhoto

    Nicotine pouches may be sold in Canada only by individuals working under the supervision of a pharmacist, under a new ministerial order targeting “new and emerging” nicotine-replacement therapies (NRTs). Sellers will also be required to store nicotine pouches behind the pharmacy counter.

    In addition, the new rules prohibit youth-appealing advertising or promotion and sales of nicotine pouches with flavors other than mint or menthol.

    Manufacturers will be required to print a front-of-package nicotine addiction warning as well as a clear indication of the intended use as a smoking cessation aid for adults trying to quit smoking. They must also submit mock-ups of labels and packages for all new or amended NRT licenses to ensure no youth appeal.

    The new restrictions will take force Aug. 28, 2024, though there will be a six-month transition period for the provisions on advertising and labeling. Established smoking cessation aids, such as nicotine gums, lozenges, sprays and inhalers, will continue to be available in a wide range of retail locations, with a variety of flavors.

    “Stronger measures are needed to protect youth from the harmful effects of nicotine and stop dependency before it starts,” said Minister of Health Mark Holland in a statement. “The action our government is taking will keep these products available for adults who need them to quit smoking while making sure they don’t get into the hands of youth for recreational use.”

    Public health advocates welcomed Health Canada’s announcement. “These new measures put an end to the easy access young people have had to a very addictive substance,” said Rob Cunningham, senior policy analyst with the Canadian Cancer Society, in a statement. “These restrictions will help protect youth from tobacco industry marketing and from nicotine addiction. We must avoid a repeat of the experience that has seen a dramatic increase in youth vaping.”

    Imperial Tobacco Canada (ITCAN), which makes the popular Zonnic nicotine pouches, warned that the ministerial order would derail efforts to reduce smoking rates.

    “The Minister of Health is making smoking cessation products more difficult to buy for adults who smoke and who want to quit,” said ITCAN Vice President of Corporate and Regulatory Affairs Eric Gagnon in a statement. “It goes against all logic for a country that wants to reduce smoking rates to target products that actually help people quit.”

    According to ITCAN, Zonnic is quickly becoming the leading smoking cessation aid product in locations where it’s sold. The company claims to have received testimonials suggesting that consumers have stopped or reduced smoking by using Zonnic.

    Canada regulates NRTs as drugs under the Food and Drugs Act. All NRTs must be approved by Health Canada and carry an approved health claim to be legally sold in Canada. Health Canada authorized sales of Zonnic in October 2023.

  • Tobacco Board Leaders Arrested for Fraud

    Tobacco Board Leaders Arrested for Fraud

    Photo: Taco Tuinstra

    The Zimbabwe Anti-Corruption Commission has arrested two senior executives of the Tobacco Industry and Marketing Board (TIMB) and charged them with fraud, reports The Sunday Mail.

    TIMB chairperson Patrick Devenish and TIMB CEO Meanwell Gudu are accused of extending a loan facility of over US$494,000 to Ultime Accolade Private in May 2021 without the knowledge of the tobacco industry regulator’s board.

    The pair appeared in court just a day after Gudu was acquitted of criminal abuse of office charges involving more than $2 million.

    Gudu was previously charged alongside Stuart Shanyika, a former head of special services at the TIMB, and Andrew Evaristo Matibiri, a former TIMB CEO. The trio was arrested in September 2022.

    The state alleged that the executives, acting in connivance, entered into private agreements with handpicked tobacco contractors.

    They allegedly used funds from a TIMB loan obtained from Agribank through the Reserve Bank of Zimbabwe to support these companies, contrary to provisions of the loan agreement.

  •  Scandinavian Tobacco Reports Higher Sales

     Scandinavian Tobacco Reports Higher Sales

    Photo: STG

    Scandinavian Tobacco Group (STG) reported net sales DKK2.37 billion ($352.77 million) for the second quarter of 2024, up from DKK2.23 billion for the comparable 2023 period.

    Net sales increased 4.8 percent organically driven by handmade cigars and next generation products. The decline rate in machine-rolled cigars & smoking tobacco improved compared with the first quarter.

    “The second quarter financial performance supports our expectation for the full year,” said STG CEO Niels Frederiksen in a statement.

    “During the past months, we have taken material steps in executing our strategy and to safeguard our financial performance in challenging markets. The new commercial structure has been completed and we have taken additional steps to re-establish our market position in machine-rolled cigars and to improve our cost agility across the group. Further, the acquisition of Mac Baren strengthens our smoking tobacco business where the combination with our existing business will deliver meaningful synergies and good value for our shareholders”.  

  • Retailers Required to Display Tobacco Warning Posters

    Retailers Required to Display Tobacco Warning Posters

    Photos courtesy of Mathijs Aliet

    Tobacco vendors in Thailand must display posters highlighting the risks of smoking, following the enactment of a new rule on Aug. 21, reports the Pattaya Mail.

    The 7 cm by 21 cm posters must be visible at all sales points during operating hours, the Department of Disease Control (DCC) announced. Violators risk a fine of THB5,000 ($146).

    The posters, provided by the Public Health Ministry, seek to reduce the number of new smokers, particularly among minors. Vendors can obtain the materials from Excise Department offices nationwide or download them from the DCC website.

  • Legislators to Vote on Brazilian Vape Ban

    Legislators to Vote on Brazilian Vape Ban

    Image: VlaDee/pavlofox

    Brazil’s Senate’s Economic Committee was scheduled to vote on bill this week that would legalize e-cigarettes in Brazil, reports Prensa Latina.

    South America’s biggest country currently prohibits the manufacture, import, marketing, distribution, storage, transportation and advertising of vapes.

    The vote on the text has been repeatedly postponed due to a lack of consensus among legislators.

    Despite the ban, which has been in place since 2009, e-cigarettes are reportedly widely available in Brazil.  

  • Top Court Urged to Review Graphic Labels

    Top Court Urged to Review Graphic Labels

    Images: FDA

    Cigarette manufacturers have asked the U.S. Supreme Court to review a lower court ruling affirming a Food and Drug Administration rule mandating graphic health warnings on cigarette packaging and advertisements, reports Law360.

    In March, the U.S. 5th Circuit Court of Appeals rejected industry arguments that FDA’s plans violates companies’ free speech rights and that the requirement overpowers branding and messaging on packages and advertisements due to the size of the images and lettering.

    Earlier, a district court had found that the new labels were provocative, value-laden messages that burdened tobacco companies’ free speech, but the Fifth Circuit disagreed, concluding that the warnings are undisputedly factual and the images “are no different from those a medical student might see in a textbook.”

    On Aug. 19, R.J. Reynolds Tobacco Co., ITG Brands and other tobacco companies urged the nation’s top court to review the appeals court’s decision, arguing that the proposed warnings are “massive, provocative and misleading.”

    They also noted that the Fifth Circuit’s finding are at odds with other court rulings that found “far smaller warnings were unduly burdensome.”

    “The Fifth Circuit’s opinion, if permitted to stand, would authorize the government to require similar massive and grotesque admonitions on virtually any disfavored consumer product—from fast food, candy and wine to plastic straws, firearms and gas stoves,” the petition said.

    The FDA released the final rule in March 2020 requiring new graphic warnings for cigarettes that feature some of the lesser-known but still serious health risks of smoking, such as diabetes, on the top half of the front and back of cigarette packages and at least 20 percent of the area on the top of cigarette advertisements.

  • Tax Collections Up Even as Smoking Drops

    Tax Collections Up Even as Smoking Drops

    Image: eyegelb

    Sri Lanka managed to increase tobacco tax collections while reducing tobacco consumption over the past decade, reports Xinhua.

    According to State Minister of Finance Ranjith Siyambalapitiya, tobacco consumption in Sri Lanka declined by 41.9 percent between 2015 and 2023. During the same period, the state’s revenue increased by 36 percent.

    In 2015, Sri Lankans smoked 3.96 billion cigarettes, whereas by 2023, this figure had dropped to 2.3 billion cigarettes, Siyambalapitiya said.

    Despite this reduction, the state’s revenue from cigarette taxes rose from LKR81.15 billion ($262 million) in 2015 to LKR110 billion in 2023, the state minister said.

    In the past two years alone, cigarette consumption decreased by 17 percent, while tax revenue increased by 6 percent.

  • Moldova Strengthens Tobacco Laws

    Moldova Strengthens Tobacco Laws

    Photo: Robson90

    Moldova is strengthening its tobacco control law, reports IPN Press Agency. Among other provisions, the new legislation will extend public smoking restrictions to e-cigarettes, further restrict audiovisual promotions and require heated tobacco product to carry graphic health warnings.

    The bill prohibits doctors from accepting contributions from the tobacco industry and promoting any tobacco or related products as alternatives to smoking.

    Minister of Health Ala Nemerenco said the bill is designed to protect the population, especially young people, from the harm of tobacco.

    The legislative changes will take effect gradually, starting three months from the date of publishing in the Official Gazette and until 2027, in the case of the new product and packaging labeling requirements.

  • Revenues and Income Down at VPR

    Revenues and Income Down at VPR

    VPR Brands reported revenues of $1.77 million for the second quarter of 2024, down from $1.9 million in the comparable 2023 quarter. Gross profit was $451,469, compared with $1.1 million in the second quarter of 2023.

    “While the second quarter presented some challenges, we are encouraged by the solid growth in our product sales and the positive trajectory of our business,” said VPR Brands CEO Kevin Frija.

    “Our ability to generate consistent revenue, coupled with our strategic investments, positions us well for future success. We are committed to driving innovation and expanding our market presence, and we believe that our focus on quality and customer satisfaction will continue to deliver value to our shareholders.”

    Looking ahead, VPR Brands says it remains focused on expanding its product lines and enhancing its market footprint. “With a solid balance sheet and a dedicated team, the company is well-positioned to capitalize on emerging opportunities in the electronic cigarette and vaporizer markets,” the company wrote in a press note.

    Photo: crizzystudio
  • Japan Tobacco Acquires Vector Group

    Japan Tobacco Acquires Vector Group

    The JT Group will acquire Vector Group (VGR), the fourth largest tobacco company in the United States.

    Based on the purchase agreement, the JT Group will conduct a tender offer for all outstanding shares of VGR through Vapor Merger Sub, an entity established specifically for this acquisition.

    The JT Group intends to acquire 100 percent of VGR’s outstanding fully diluted share capital for a per share price of $15, representing a total equity value transaction estimated at around $2.4 billion. The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following closing, VGR will be a wholly owned consolidated subsidiary of JT and be delisted from the New York Stock Exchange.

    “Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organization. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands’ legacy of value-focused, quality products and looks forward to continuing to meet customers’ evolving needs.”

    “We are excited by this acquisition which, in line with our tobacco business strategy, will contribute to the acceleration of the ROI [return on investment] in our combustible business and expand JT Group’s global footprint,” said Masamichi Terabatake, JT Group CEO and president of the company’s tobacco business, in a statement.

    “By adding this sizeable and historically profitable business to our company, we are confident the transaction will contribute to sustainable growth and increase JT Group’s corporate value.”

    “This transaction will significantly increase our U.S. presence, boosting our market share from 2.3 percent to approximately 8 percent and giving us full ownership of two of the top-10 U.S. cigarette brands,” said Eddy Pirard, president and CEO of JT International.

    “The transaction will enable us to also strengthen our distribution network and create mid- to long-term strategic opportunities to boost our competitiveness in this major tobacco market.”