Category: Featured

  • Industry Welcomes Draft U.K. Vaping Guideline

    Industry Welcomes Draft U.K. Vaping Guideline

    Photo: pavel_shishkin

    The U.K. Vaping Industry Association (UKVIA) has welcomed the publication of draft guidance by the government’s top health advisory body to support health workers in helping smokers transition successfully to vaping.

    The National Institute for Health and Care Excellence (NICE) has published draft guideline recommendations, currently out for consultation, which make the case for healthcare workers to inform patients where they can find vaping products, proactively promote the fact that vape products are substantially less harmful than conventional cigarettes and provide advice on how to use vape devices correctly.

    This announcement follows fast on the heels of National Health Service (NHS) trials that were announced recently, whereby vaping devices are given to smokers in A&E departments. These are already under way in some NHS hospitals in England and Wales.

    These developments coincide with a new campaign being planned by the UKVIA to support frontline workers in helping smokers successfully quit smoking using vaping through the advice they give.

    “It’s great to see that the NHS is embracing the huge public health potential of vaping,” said John Dunne, director general of the UKVIA, in a statement. “Pro-vaping actions such as NICE’s draft guideline recommendations and the NHS trials are key to ensuring the government meets its target for a smoke-free Britain.

    “Our own campaign, which we will be launching in July, will provide a much-needed resource to help frontline healthcare staff give the right advice to smokers on how best to quit using vaping.

    “A one-size-[fits]-all approach is not the way to maximize quit rates amongst smokers from taking up vaping. It depends on their level of smoking, which in turn determines the flavors, nicotine levels and devices that they should be using. We are using the many years of experience amongst our members to equip the NHS with advice that is proven to get results.”

  • FDA Chief Grilled About Action on Youth Vaping

    FDA Chief Grilled About Action on Youth Vaping

    Photo: Araki Illustrations

    Juul Labs has played a significant role in creating a youth vaping epidemic in the United States, according to Acting Food and Drug Administration Commissioner Janet Woodcock, reports Bloomberg.

    Asked during a June 23 hearing of the House Oversight Subcommittee on Economic and Consumer Policy if Juul was “the e-cigarette company most responsible for creating this epidemic,” Woodcock answered that it does “appear” to be the case.

    Juul has been accused of marketing its products to youths, a charge the company denies.

    Juul is one of hundreds of e-cigarette makers that is seeking the FDA’s permission to continue to sell its products. Those marketed since February 2007 have had to submit applications to the FDA in order to stay on the market.

    Approval is based on the FDA finding a product is “appropriate for the protection of the public health,” which requires makers to demonstrate that their products won’t promote youth use but instead will help adults quit smoking.

    Juul underage use fell in 2020 compared with other companies, according to a study in JAMA Pediatrics. That year also saw 1.73 million less youth tobacco users overall than in the year prior, according to a national youth tobacco survey conducted by the FDA and the U.S. Centers for Disease Control and Prevention.

    Woodcock said Wednesday that the agency is prioritizing products from “about five” e-cigarette companies that account for large portions of the market but did not name the companies.

    Subcommittee Chairman Raja Krishnamoorthi urged the FDA to deny approval for all vaping companies in the agency’s ongoing review of their products.

    The agency must decide on marketing applications by Sept. 9.

  • Think Tank Debates COP9 Impact on Vapers

    Think Tank Debates COP9 Impact on Vapers

    The U.K. Institute of Economic Affairs (IEA) will host a discussion today on the impact of the World Health Organization’s ninth Conference of the Parties (COP9) to the Framework Convention on Tobacco Control (FCTC), which is scheduled to take place on Nov. 21 in the Netherlands.

    The COP is the supreme decision-making body of the FCTC, where all parties to the FCTC meet biennially to review the implementation of the convention and adopt the new guidance. For the first time since leaving the European Union, in November 2021, the U.K. will send a delegation to the COP.

    According to the IEA, COP9 poses a significant threat to the U.K.’s approach to harm reduction policy. “The WHO is increasingly, and against the clear evidence, positioning itself as an enemy of vaping,” the think tank states on its website. “The U.K. is a world leader in tobacco harm reduction, and a significant reason for this is our comparatively liberal approach to vaping products and e-cigarettes.”

    Participants in the IEA forum will discuss who represents the U.K. at COP, how decisions are reached, the impact of these decisions on the U.K.’s harm reduction progress and the country’s 2030 smoke-free target, among other topics.

    Speakers includes IEA Director General Mark Littlewood (chair), Matt Ridley (vice-chair of the All-Party Parliamentary Group on Vaping), Christopher Snowdon (IEA head of lifestyle economics) and Louis Houlbrooke (NZ Taxpayers Union).

    The discussion can be followed live on the screen or here.

  • Altria Executives Scorn Their Vapor Products During Trial

    Altria Executives Scorn Their Vapor Products During Trial

    Photo: Paul Brady | Dreamstime.com

    Altria Group Executives have been describing in detail their failure to come up with a marketable vapor product during an antitrust trial, reports The Wall Street Journal. Products leaked, generated high formaldehyde levels and lacked the nicotine smokers were looking for, according to their testimonies.

    In April 2020, the Federal Trade Commission (FTC) sued to unwind Altria’s 35 percent interest in Juul Labs, which the cigarette maker acquired in December 2018 for $12.8 billion.   

    A key question at trial is why Altria ended production of its own e-cigarettes in late 2018, shortly before announcing its investment in Juul.

    Altria in October 2018 announced it was halting the sale of its pod-based and fruity-flavored e-cigarettes in response to a call by the Food and Drug Administration for e-cigarette makers to help stem a surge in vaping among children and teens. Then in December of that year, two weeks before the Juul agreement was signed, Altria pulled its remaining e-cigarettes off the market.

    The FTC alleges Altria did so because of an illegal side deal in which it agreed to close its own e-cigarette business so it could take a stake in Juul. Altria and Juul both deny they had any such agreement.

    Altria says it halted its e-cigarette sales amid pressure from regulators to curb youth use and an internal reckoning about the company’s inability to develop a successful vaping product. Juul says it didn’t see Altria’s e-cigarettes as a threat, didn’t ask Altria to shelve them and was surprised when Altria did so.

    Juul and Altria argue that since the deal was struck, competition in the e-cigarette market has increased not decreased. Juul’s market share has fallen as have e-cigarette prices.

    The FTC is seeking to force Altria to divest its stake and terminate the companies’ noncompete agreement. The case is being heard by an administrative law judge, who will make an initial decision; the agency’s commissioners will then vote on the matter.

  • KPMG: Illicit Cigarette Trade up in Europe

    KPMG: Illicit Cigarette Trade up in Europe

    Photo: IvanSemenovych

    While total cigarette consumption continues to decline, the share of illicit cigarettes in Europe increased by 0.5 percentage points to 7.8 percent in 2020, according to a new study by KPMG.

    The increase of the illicit cigarette market—which comprises contraband, counterfeit and illicit whites—was driven by an unprecedented 87 percent surge in counterfeit consumption. The tax loss for governments of the EU’s 27 member states now amounts to approximately €8.5 billion ($10.15 billion).

    The annual study, conducted independently by KPMG and commissioned by Philip Morris International, evaluated the consumption and flows of illicit cigarettes in 30 European countries—the 27 EU member states as well as U.K., Norway and Switzerland.

    It shows how legal and illicit cigarette consumption was impacted by the Covid-19 pandemic, a period of lockdowns and restricted movement of people within the EU coupled with declines in affordability. The report estimates that total consumption of cigarettes declined by 4.7 percent in 2020 to 438.8 billion in the EU member states, while the Covid-19-related border controls and travel restrictions resulted in a sharp decrease of nondomestic consumption, which declined in 2020 by 18.5 percent (11.9 billion cigarettes). The decline in total cigarette consumption also coincided with the growth of 6 billion cigarette equivalent units in the fine-cut tobacco category in 2020.

    Consumption of illicit whites and other contraband cigarettes decreased year-over-year, but these declines were more than offset by an increase in counterfeit, which almost doubled in 2020, equating to 10.3 billion fake cigarettes, up from 5.5 billion in 2019. This was estimated to be driven mainly by an unprecedented 609 percent increase in counterfeit cigarette consumption in France, reaching 6 billion fake cigarettes consumed in the country alone.

    It is crucial to protect consumers against counterfeits and that law enforcement, governments and trademark owners come together as one to address and eradicate illicit trade.

    Alvise Giustiniani, vice president of illicit trade prevention, PMI

    “It is crucial to protect consumers against counterfeits and that law enforcement, governments and trademark owners such as ourselves in the private sectors come together as one to address and eradicate illicit trade in Europe and beyond,” said Alvise Giustiniani, vice president of illicit trade prevention at PMI, in a statement. “Eliminating illicit trade is particularly important within the context of PMI’s transformation toward a smoke-free future, and we need to continue working in partnerships to address any potential illicit trade threats, including in our novel products. Compliance to the law and effective enforcement against criminals profiting from illicit trade is an absolute must.”

    Interviews with law enforcement, conducted by KPMG as part of the study, indicate that organized criminal groups continued to move their operations inside the EU borders as a large proportion of illicit whites and counterfeit cigarettes are also believed to be manufactured in illegal factories within the EU. This is further supported by the increasing number of illegal cigarette factory raids in multiple European countries.

  • Amcor Installs Blown-Film Production Line

    Amcor Installs Blown-Film Production Line

    Photo: Amcor

    Amcor’s Flexibles North America (AFNA) business has installed a seven-layer blown film line.

    The new machine will produce the company’s recently launched proprietary AmPrima PE Plus ultra-clear and heat resistance films. The AmPrima line uses machine-direction orientation technology to produce films that can run at unmatched speeds.

    These films enable customers to shift to recycle-ready solutions without compromise on performance, product appearance or manufacturing throughput. AmPrima is part of Amcor’s growing portfolio of responsible packaging solutions. In the U.S., when clean and dry, AmPrima can be collected for recycling curbside where available or through existing in-store drop-off locations. These solutions also are prequalified for the How2Recycle label, which saves customers time, cost and reduces risk in development.

    According to Amcor, the AmPrima line represents another meaningful step forward against the company’s effort to make all its products recyclable or reusable by 2025. Amcor continues to enhance its leadership position in responsible packaging solutions with a keen focus on addressing end-of-life and reducing waste in the environment.

    “This move enhances our ability to grow our AmPrima product line,” said AFNA President Fred Stephan, in a statement. “The integration of this technology is an important example of how we’re leaning into our commitment to satisfy customer demand for more sustainable solutions.”

    Production teams at Amcor Flexibles North America Oshkosh Converter Films have completed first runs on the new AmPrima line. Amcor expects full production capability by the end of June.

  • U.S. Customs Intercepts Counterfeit Vaping Pens

    U.S. Customs Intercepts Counterfeit Vaping Pens

    Photo: CBP

    U.S. Customs and Border Protection (CBP) officers at the Port of Atlanta seized 66 boxes of “Rick and Morty” branded vape pens in a shipment that originated from China.

    The popular cartoon characters were printed on the vape pen packaging, which made the merchandise suspect of copyright and trademark law infringement.

    “One of our primary missions is to intercept merchandise that could pose a serious health risk to the consumer, but this shipment of counterfeit vape pens violated intellectual property rights,” said Paula Rivera, CBP port director for Atlanta, in a statement. “CBP collaborates with many government agencies to enforce laws to protect the health and safety of the consumer and our communities.”

    After contacting brand owner Warner Bros. Entertainment, CBP import specialists determined the shipments of vape pens did indeed infringe upon the “Rick and Morty” copyright and seized the 19,800 flavored pens. Similar pens properly licensed would have a manufactured suggested retail price of more than $590,000.

    Every year, CBP seizes millions of counterfeit goods from countries around the world. Nationwide in 2020, the agency seized 26,503 shipments containing goods that violated intellectual property rights. The total estimated value of the seized goods, had they been genuine, was nearly $1.3 billion.

  • University to Study Impact of Flavor Bans

    University to Study Impact of Flavor Bans

    Photo: Borgwaldt Flavor

    A new University of Kentucky College of Medicine study will examine how policies that restrict the sale of flavored tobacco products, including menthol cigarettes, impact health disparities among vulnerable populations.

    A five-year $2.8 million grant from the National Cancer Institute will support the study on how local policies impact at-risk groups—including communities of color, low-income populations and youth—that are more likely to use flavored tobacco products.

    The results could help lawmakers create policies that are more equitable, says the study’s principal investigator, Shyanika Rose, a faculty member of the Center for Health Equity Transformation, assistant professor in the Department of Behavioral Science and member of the Markey Cancer Center Cancer Prevention and Control Program.

    “We already know that stopping the sale of these products can reduce their availability and use in these communities,” said Rose in a statement. “But understanding the impact of policies across race and socioeconomic status will give guidance about what kinds of policies work and have the most equitable benefits.”

    Rose says flavored tobacco products, which are more appealing, easier to use and more addictive, have a long history of being disproportionately marketed toward vulnerable communities, particularly African Americans. According to the Truth Initiative, nearly 90 percent of all Black smokers use menthol cigarettes, and more than 39,000 African Americans die from tobacco-related cancers each year.

    Currently, U.S. federal laws only prohibit the sale of certain flavored tobacco products. The sale of menthol cigarettes and all flavors of smokeless tobacco, cigars and hookah is still permitted. While the Food and Drug Administration recently announced new steps to implement a ban on the sale of menthol cigarettes and flavored cigars, the proposal will not eliminate all flavored tobacco products from the market, specifically flavored e-cigarettes and e-liquids.

    In the absence of broad-based federal laws, several state and local jurisdictions across the country have enacted their own policies. Rose says about 30 percent of localities with a policy have a comprehensive one that prohibits the sale of all flavors, including menthol, across all tobacco products.

    “While the FDA is moving federal policy in the right direction, comprehensive policies that restrict the sale of all flavored tobacco products may be more likely to protect the health of the most vulnerable populations, and this is something this project will investigate,” Rose said.

  • Study: Tax Hikes Boost Big Brands

    Study: Tax Hikes Boost Big Brands

    Photo: Tobaco Reporter archive

    Tax hikes can disproportionately favor bigger brands while tightened restrictions can hurt them, according to a new study by the UBC Sauder School of Business reported by Medical Express.

    Researchers examined U.S. cigarette sales data from 2005 to 2010 and retail scanner data from 2006 to 2010. They also analyzed a comprehensive dataset that comprised state-level cigarette taxes, state-level smoking restrictions and national anti-smoking advertising campaigns.

    After modeling each smoker’s brand and purchase quantity, the researchers looked at how the taxes, restrictions and ad campaigns influenced their decisions across different brands and price tiers.

    They found that while tax hikes may reduce overall sales, big brands’ market shares tend to increase at the expense of smaller competitors.

    “Market leaders such as Marlboro were able to absorb more taxes and pass less cost down to their consumers,” said UBC Sauder Assistant Professor Yanwen Wang, who co-authored the study. “So, when consumers look at the prices, it seems like Marlboro has raised prices less when compared to smaller brands.”

    Conversely, smoking restrictions seem to hit bigger brands harder—likely because they take away smoking’s brand-driven “cool” factor. With fewer places to light up, it becomes harder for consumers to signal who they are through smoking, which in turn reduces the incentive for smokers to purchase higher equity brands.

    The study also shows that while the taxes may help governments boost their bottom lines, ultimately, smokers pay a heavier price. In fact, the researchers found that a 100 percent tax hike leads to a 30 percent increase in the rate of smokers quitting, but it puts the cost on consumers—and only lifts overall tobacco tax revenue by roughly 28 percent because of declining sales.

    In contrast, strong smoking restrictions boost quit rates by 9 percent and reduce tax revenues by 6 percent—so while consumers may experience some inconvenience in terms of where they can smoke, they don’t shoulder the economic costs.

  • Connecticut Scolded for Welcoming Philip Morris

    Connecticut Scolded for Welcoming Philip Morris

    Photo: Vankad

    The Campaign for Tobacco-Free Kids (CTFK) slammed Connecticut for welcoming Philip Morris International to the state.

    On June 22, the tobacco giant announced it would relocate its corporate headquarters to Connecticut from New York, bringing approximately 200 jobs to the state. State leaders, who had helped facilitate the move, welcomed the decision.

    “We are excited to welcome PMI to the state of Connecticut, showing once again that our state is a growing and thriving ecosystem for businesses,” said Connecticut Governor Ned Lamont after the announcement. “They recognize what we’ve been saying for years: Connecticut is a wonderful place to raise a family and a competitive place to conduct business. I am also impressed by their culture and desire to integrate closely into the communities in which they operate, and we look forward to seeing their active and charitable contributions to our state.”

    “Philip Morris International’s move to Southwest Connecticut will bring approximately 200 good-paying jobs that will boost our economy and augment the tax base, which funds our schools, infrastructure and essential community services,” said State Representative Jim Himes. “As our area recovers from Covid-19, I’m pleased to see new economic investment in our community and thank Governor Lamont for his laser-like focus.”

    CTFK President Matthew L. Myers, by contrast, was aghast.

    “How in the world can any public official welcome a company whose main product kills when used as intended and contributes to over 8 million deaths worldwide each year?” he said in a statement.

    “The 200 corporate jobs promised by Philip Morris International pale in comparison to the 4,900 Connecticut residents who die each year from smoking and the 56,000 Connecticut kids alive today who will ultimately die prematurely from smoking. That’s in addition to the millions sickened and killed worldwide by Philip Morris’ products each year. Far from helping to create a thriving business climate, Philip Morris International is in the business of selling products that addict, sicken and kill. They should not be welcomed anywhere.”

    PMI’s new headquarters are expected to be operational by summer 2022.