Category: Featured

Wilson White Joins Vector Group Board

Photo: tadamichi
Vector Group has appointed technology industry veteran Wilson L. White to its board of directors, effective immediately. White currently serves as senior director of government affairs and public policy at Google. With White’s appointment, Vector Group’s board expands to 10 directors.
“With many years of experience in the technology industry, including government relations and legal expertise, Wilson brings to the board a unique skillset that will further strengthen Vector Group’s commitment to staying at the forefront of our business’ rapidly evolving digital environment,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “Wilson is a results-oriented leader and collaborator, and we are thrilled to welcome him to our board of directors.”
“I am honored to join Vector Group’s board of directors and look forward to working with this talented team to advance the company’s goals for the benefit of all of its stakeholders,” said White.
In his current role at Google, White is responsible for managing a global team focused on advising senior product leadership on government affairs and public policy for the company’s core business units as well as developing and executing external advocacy initiatives on artificial intelligence, privacy and security, competition and other issue areas.
Prior to assuming this role in 2013, White served as a patent litigation attorney on Google’s legal team and was previously a patent litigator for the intellectual property practice of Kilpatrick Townsend & Stockton.
June 23, 2021
WHO Details “Attempts to Avoid Regulation”
Photo: Olrat
The World Health Organization has published a report detailing what it describes as attempts by manufacturers to avoid regulation of e-cigarettes and heated-tobacco products.
Titled “Litigation relevant to regulation of novel and emerging nicotine and tobacco products: comparison across jurisdictions,” the report offers governments examples of the legal arguments that the industry has used in attempts to minimize regulation as well as how courts have addressed those arguments.
The emergence of products such as heated-tobacco products (HTPs) and electronic nicotine-delivery systems (ENDS) and their market growth has raised questions about how they should be regulated and how that regulation might affect comprehensive tobacco control.
The WHO previously published its position on regulation of these products but has not addressed legal issues, such as how those regulations are being challenged in different jurisdictions. The new report and the accompanying case summaries close this gap and provide the facts, discussion of legal issues, arguments advanced and the reasoning of the courts.
The key messages highlighted in the publication are:
ENDS and HTP manufacturers attempt to avoid products being regulated so as to fall within regulatory or legislative gaps.
Manufacturers can be expected to deploy arguments concerning the relative risk of different product categories and the need for coherent regulation along a continuum of risk.
Not all courts are receptive to arguments about relative risk, either because regulations are justified by reference to absolute risk or because the concept of relative risk must be judged at the population level and taking into account factors beyond relative toxicity.
Technological advances employed for the manufacture of novel and emerging nicotine and tobacco products will raise questions of whether a product falls within the ambit of the national legislation of the country.
There are relatively few cases addressing misleading marketing of ENDS, or enforcing restrictions on advertising, promotion and sponsorship, but important cases have been decided, including on how social media posts may constitute advertising and on whether advertising of an HTP device also constitutes advertising of a tobacco product.
June 22, 2021
Kaival Brands Reports Second-Quarter Results
Kaival Brands Innovations Group reported revenue of $18.1 million for its fiscal second quarter, which ended April 30, 2021.
The company also received two significant Bidi Stick orders with a combined value of $41.6 million. According to Kaival Brands CEO Niraj Patel, these orders represent some of the largest individual orders since the company started business. “We believe [they] are indicative of our robust pipeline for the innovative Bidi Stick and our shift to large wholesalers and distributors versus smaller retailers,” he said in a statement.
“This shift in strategy also helps us remain an industry leader in our effort to continually exceed Prevent All Cigarette Trafficking (PACT) Act compliance requirements. The Bidi Stick experience is unrivalled as evidenced by our leading market share within the ENDS category,” said Patel.
While the potential contract values of additional national retailers are significantly higher than those of smaller retailers and wholesalers, the process to navigate these contracts is more onerous and time consuming, according to Kaival Brands. However, Patel believes such contracts are worth the investment because the company expects more large orders to follow.
Kaival Brands recently received approval to market and sell Bidi Vapor products in 11 countries. Despite Covid-19 related delays in building its international infrastructure, the company is confident it soon will be able to launch the Bidi Stick in the U.K. as well.
Kaival Brands is also enthusiastic regarding the opportunity for its Bidi Pouch, which has been developed without Swedish Match intellectual property.
June 22, 2021
PMI Moves its Head Office to Connecticut

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Philip Morris International will relocate its corporate headquarters to Connecticut from New York. The new headquarters is expected to be operational by summer 2022.
“Connecticut offers a valuable mix of technological know-how, future-forward thinking and an open-minded approach to problem-solving,” said Jacek Olczak, CEO of PMI, in a statement. “We consider it an ideal location for our new U.S. head office, where we will be working to more quickly achieve our vision of a smoke-free future. We are excited about what the state has to offer our company, our employees and their families—and we very much look forward to integrating into the community in a meaningful way.”
“We are amid a profound transformation at PMI,” continued Olczak, “and our new base in Connecticut will serve to accelerate our progress. Beyond replacing cigarettes with better alternatives, we intend to draw on our expertise in life and medical sciences to develop solutions in areas that include respiratory drug delivery and botanicals. Through our product innovations, sustainability leadership, people-centered employment practices and community involvement, we intend to be a source of pride for the state.”

Connecticut offers a valuable mix of technological know-how, future-forward thinking and an open-minded approach to problem-solving.
Jacek Olczak, CEO, PMI
The new office—which is also PMI’s headquarters—will house the Americas teams and members of other corporate functions. PMI’s Operations Center will remain in Lausanne, Switzerland, to continue to support the business across the globe. The company employs a workforce of more than 71,000 worldwide.
The move, which was facilitated with the support of Connecticut Governor Ned Lamont’s office, will bring approximately 200 jobs to the state. “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 Lamont.
June 22, 2021
Smuggling Prompts Call for Monitoring Officers

Photo: Tobacco Reporter archive
The Fair-Trade Independent Tobacco Association (FITA) has called for stronger monitoring of law enforcement officers following the arrest of members of the South African National Defense Force for allegedly transporting illicit cigarettes.
Two Defense Force members were arrested along with a civilian, who is believed to be an illegal immigrant, while driving an army vehicle full of illicit cigarettes set to be delivered to an unidentified buyer in Musina, according to Eyewitness News.
“As an organization, we have long been vocal about corrupt law enforcement agents and officials at our border posts who play a substantial role in the smuggling of illicit cigarettes via our various border posts,” FITA wrote on its website.
“The latest incident, as shocking as it is, affirms our long-held view that the criminal syndicates behind the rampant smuggling of cigarettes into the country can only succeed with the help of corrupt law enforcement agents.
“We call on the various bodies in our criminal justice system responsible for the investigation, prosecution and adjudication of matters such as this to ensure that justice is administered and that the sovereignty and integrity of this country is protected.
“Incidents of this nature undermine our national security and embolden the criminal syndicates responsible for these acts, which, amongst other things, rob our fiscus of billions.
“We also call on all law enforcement agencies to implement stronger measures to monitor the conduct of their members while on duty. The illicit trade in cigarettes and other goods cannot flourish with the aid of corrupt law enforcement agents. We have of late been encouraged by the great work being done by various law enforcement agencies in rooting out the illicit trade in cigarettes, and we hope that they can rid themselves of these rotten apples who are putting a black mark on all these efforts.”
June 21, 2021
Critics Lambast Canada’s Flavor Ban

Photo: Deyan
Health advocates and vapor industry groups criticized Canada’s proposal to ban all flavored vaping products except for tobacco, mint and menthol. Published June 19 in the Canada Gazette, the draft legislation was criticized for falling short by tobacco control advocates and for going too far by the Canadian Vaping Industry Association (CVA).
The CVA warned that if the flavor ban is implemented, it may push hundreds of thousands of consumers back to smoking or to the black market. “There is mounting evidence that flavors reduce cravings and increase smoking cessation success,” the organization wrote in a press note. “Research from Yale School of Public Health finds that smokers that quit using a flavored product are 2.5 times more likely to be successful.”
“We have repeatedly shared the science on vaping,” said Darryl Tempest, executive director of the CVA. “Regulators are aware of the important role flavors play in the adoption of vaping by smokers. A flavor ban will reduce the appeal of the product and will sentence many smokers to their death. There is sufficient data from regions with flavor bans to provide a clear understanding of the consequences. Flavor bans do little to protect youth and instead increase smoking rates and strengthen the black market.”

A flavor ban will reduce the appeal of the product and will sentence many smokers to their death.
Darryl Tempest, executive director, CVA
ASH Canada, by contrast, described the decision to exempt mint and menthol from the flavor ban as an unacceptable concession to the vaping industry.
“The proposed regulations will not adequately protect Canadian youth from flavored vaping products” said Les Hagen, executive director of ASH, in a statement. “Menthol is the second most popular flavor among youth vapers. A partial ban on flavored vaping products in the U.S. resulted in massive switching to menthol flavored products. We expect a similar result in Canada if these regulations are approved.”
“There is no scientific justification for exempting menthol vaping products,” says Flory Doucas, co-director and spokesperson for the Quebec Coalition for Tobacco Control. “Menthol is the second most popular flavor among youth, tied with mango. We know that flavors are one of the main factors that attract young people to vaping, causing all kinds of health risks in addition to being one of the most addictive substances on the planet.”
The health groups decried the influence of the vaping industry on the debate. The CVA has been the most active of all lobbies on Parliament Hill in May, wrote ASH, citing The Lobby Monitor.
Over 400,000 Canadian youth are using vaping products, according to Health Canada’s latest survey conducted in 2019.
Stakeholders can comment on Canada’s draft flavor regulations until Sept. 2, 2021.
Health Canada is also publishing new restrictions on the nicotine concentration in vapor products. These regulations set a maximum nicotine concentration of 20 mg per mL in vaping products to make them less appealing to youth. The regulations also prohibit the packaging and sale of vaping products if the nicotine concentration of the products exceeds this limit. Manufacturers must adhere to this limit by July 8, 2021; retailers may not sell products that exceed this limit after July 23, 2021.
June 21, 2021
Nicotine Forum Focuses on Harm Reduction

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Policymakers in public health and tobacco control need to listen to both the science on tobacco harm reduction and the experiences of consumers who are benefiting from it every day. Ideology must be set aside to prioritize progress toward the common goal of ending smoking. Those were some of the messages conveyed during the Global Forum on Nicotine (GFN), which took place June 16–18 in Liverpool, U.K.
Gerry Stimson, Emeritus Professor at Imperial College London and a founder of the GFN, said that much of what she has seen and heard during the event was encouraging.
“It feels as though we’re on the right trajectory,” he said. “Consumers all over the world are becoming aware of the opportunities offered by safer nicotine products, and innovations in the market will, I believe, lead to the eventual obsolescence of combustible cigarettes,” she said. “The question is how to speed up the process and scale up so that tobacco harm reduction reaches all smokers, everywhere, as quickly as possible.”
Multiple panel discussions took in subjects ranging from safer nicotine product regulation, tobacco harm reduction in low-income to middle-income countries and orthodoxy and dissent in science. Speakers’ prerecorded presentations for the panel sessions will remain available online at the conference website.
Three keynotes were delivered to honor Michael Russell, a psychiatrist, research scientist and pioneer in the study of tobacco dependence and the development of treatments to help smokers quit. Russell’s observation in the British Medical Journal in 1976 that “people smoke for nicotine, but they die from the tar” remains highly influential within the field.
The speeches honoring Russel focused on harm reduction and were given by Fiona Patten, leader of Australia’s Reason Party; Jon Fell, founder of investment company Ash Park; and Derek Yach, president of the Foundation for a Smoke-Free World.
“In Australia, governments have consistently stated that drug use must be treated as a health issue not a criminal one. But when it comes to nicotine, they are actively making criminals out of users,” Patton said. “For decades, they ignored the science about the dangers of smoking, but today, they argue that there is not enough science to sanction alternative nicotine products.”
GFN does not receive any sponsorship from manufacturers, distributors or retailers of nicotine products, including pharmaceutical, electronic cigarette and tobacco companies. Participants include consumers, policymakers, academics, scientists and public health experts alongside representatives from manufacturers and distributors of safer nicotine products.
The event organizers believe that dialogue and strategic engagement of all stakeholders involved in tobacco and nicotine use, control and production are the only way to effect true, sustainable change—both to industry practices and the public health outcomes related to smoking.
June 21, 2021
Tanzania: Leaf Prices Skyrocketing in Tabora

Photo: Taco Tuinstra
Tobacco leaf prices in Tanzania’s Tabora region have risen tenfold to TZS4,000 ($1.72) per kg this growing season due to the availability of reliable buyers and the quality of the product, reports the Daily News.
The price rise is a major incentive for small-scale tobacco growers in the region who are increasing their production levels to take advantage. Uyui District Executive Director (DED) Hemed Magaro noted that an increase in tobacco leaf firms have led to stiffer competition and higher prices for the best quality leaf. “There are at least five giant tobacco buyers in the region who led the addition of tobacco grades. This means that not only everybody sells, but at a reasonable price,” he said.
What’s more, extension officers have been visiting farmers throughout the growing season, giving agronomical advice and related services. This has resulted in better quality leaf.
Tobacco growers were elated by the firm prices. “Every farmer was crying last harvest season, but the situation is quite opposite at this moment,” said tobacco grower Good Nzola.
Tanzania Tobacco Board Acting Director Stanley Mnozya said the presence of reliable buyers had improved the availability and quality of tobacco seeds.
“We continue conducting farmers’ verification so that we can have an exact number and set proper means to serve them,” he said. “We have also made possible the availability of extension officers wherein a person serves at least 150 farmers. As a result, tobacco quality has been upgraded from 67 [percent] to 93 percent.”
June 18, 2021
PMI Eyes Nicotine Gum Manufacturer

Photo: Gevorg Simonyan
Philip Morris International is interested in acquiring Fertin Pharma, a manufacturer of nicotine chewing gum, according to the Financial Post.
Financial analysts said that Fertin could be valued at about €600 million ($713.5 million), including debt, in a sale. Fertin, which is the world’s biggest contract development and manufacturing organization for nicotine chewing gum, also helps produce tablets, gum and lozenges used for pain medication, vitamins, cough treatments and sleeping aids.
Fertin has more than 800 employees spread across research and manufacturing facilities in Canada, Denmark and India that produce three billion units a year, according to its website. PMI has been working to expand its nontobacco offerings amid an increasing focus on health around the world.
June 18, 2021
Mixed Results from San Francisco Flavor Ban

Photo: Can Balcioglu
Sales of flavored tobacco products decreased significantly in the wake of San Francisco’s ban, but teenagers were also more likely to take up smoking relative to their peers in other cities, according to two separate studies.
In the summer of 2018, San Francisco residents voted overwhelmingly to ban the sale of flavored tobacco products, including nicotine vaping products and menthol cigarettes. By January 2019, when the prohibition took effect, almost every retailer in the city was immediately compliant.
A study from researchers at RTI International, Stanford University School of Medicine and the California Tobacco Control Program published in Tobacco Control measured changes in tobacco sales before and after San Francisco’s law prohibiting flavored tobacco products. The study found that sales of all flavored tobacco products—including menthol cigarettes and flavored e-cigarettes—were virtually eliminated in the city after implementation of the policy, with no evidence of widespread substitution of nonflavored products.
Sales of all flavored tobacco products decreased by 96 percent in San Francisco after implementation of the city law in early 2019. Total tobacco sales also significantly decreased over the same period, suggesting consumers did not broadly switch to unflavored tobacco products.
“A reduction in total tobacco sales in SF suggests there was not a one-to-one substitution of tobacco/unflavored products for flavored products,” the authors wrote.
However, a recent study published in JAMA Pediatrics, found that teenagers in San Francisco’s high schools were more likely to take up smoking than teenagers in other U.S. school districts after the city’s flavor ban took effect. (San Francisco later became the first U.S. city to ban sale of all e-cigarettes, but the effects of that were not the subject of the study.)
Prior to the flavor ban, smoking rates in San Francisco paralleled many cities across the country, showing fewer teens using combustible cigarettes over time. After the city enacted its policy, the odds of smoking among its high school students, relative to trends in comparison school districts, more than doubled.
The findings come as other cities are acting against flavored tobacco products. On June 16, the Los Angeles City Council voted to end the sale of flavored tobacco products in the city. The measure covers flavored e-cigarettes, menthol cigarettes and flavored cigars but exempts certain hookah products.
In California alone, more than 100 cities and counties have cracked down on flavored tobacco products. In 2020, the state acted to end the sale of flavored tobacco products, but the law is on hold because of an effort to overturn it through a November 2022 referendum.
June 18, 2021