Category: Featured

  • Maldives: Call for Higher Tobacco Taxes

    Maldives: Call for Higher Tobacco Taxes

    Photo: Kalyakan

    The Maldives’ Health Protection Agency (HPA) has recommended higher taxes to deter tobacco use, reports The Edition.

     In an article published on the Ministry of Health website, the HPA expressed concern over the increasing use of e-cigarettes and nicotine pouches among teenagers and youth.

    According to a 2021-2022 survey, some children in the Maldives begin using tobacco as young as eight years old.

     The Maldives spends MVR1.8 billion ($116,896) annually to import 400 million cigarettes. Significant amounts are also spent on importing e-cigarettes and shisha tobacco, according to the HPA.

    The agency called for further restrictions on tobacco advertising and marketing, along with bans on public smoking to reduce exposure.

  • Ispire Partners With Hidden Hills

    Ispire Partners With Hidden Hills

    Photo: Africa Studio

    Ispire Technology and Aspire North America have signed a global licensing agreement with the U.S. lifestyle brand Hidden Hills Club.

    Under the agreement, Ispire will globally manufacture, distribute and commercialize Hidden Hills’ branded nicotine products, including reduced-risk e-cigarettes. The initial Hidden Hills nicotine products are scheduled to roll out in the United Arab Emirates and South Africa in the coming weeks, followed by the United Kingdom and European Union over the next few months.

    “Our partnership with Hidden Hills Club enables us to bring more innovative and reduced-risk nicotine products to a global audience,” said Ispire Co-CEO Michael Wang.

    “The 30-year exclusive license will allow us to make significant investments in the Hidden Hills brand, ensuring robust distribution and a deep product portfolio that captures the essence of this iconic lifestyle brand. Hidden Hills’ popularity as a lifestyle brand—encompassing apparel, clothing and cannabis and hemp products—has grown at an exponential rate over the last two years. Partnering with Hidden Hill will help Ispire to capture this west-coast culture and energy, and infuse it into its nicotine product offerings globally, under the Hidden Hills brand flag.”

    “Teaming up with Ispire was a strategic decision for us,” said Hidden Hills Club CEO Dre Liang. “Ispire’s expertise in vaping technology and its global distribution network provide the perfect platform to expand our brand into the nicotine products market. We believe this collaboration will redefine the market with products that reflect our brand’s commitment to quality and innovation.”

  • Malawi Earnings Up

    Malawi Earnings Up

    Photo: Taco Tuinstra

    Malawi has earned $295.31 million from tobacco sales to date, 40 percent more than it collected during the 2023 selling season, reports The Nyasa Times. The country sold $132.8 million kg of tobacco at an average price of $2.95.

    Despite the improved earnings, the income is enough to keep the southern African nation’s economy running for just over 1.5 months, according to analysts. Malawi has long struggled with a balance-of-payment crisis.

    TAMA Farmers Trust President Abiel Kalima Banda described this year’s tobacco selling season as successful, noting that auction prices had increased for the first time in up to six years. The extra income, he suggested, would motivate farmers to stick with the crop.

    The Tobacco Commission has licensed 60.2 million kg of leaf for the next growing season, almost triple the volumes licensed at the same time last year.

    The regulator aims to increase annual tobacco production to 200 million kg by 2028, noting that demand for Malawi’s burley tobacco has in recent years outstripped supply.

    Not all stakeholders are keen for Malawi to increase tobacco production, however. In late 2023, the nation ratified the World Health Organization Framework Convention on Tobacco Control, which among other things encourages signatories to replace tobacco with alternative crops.

    Malawi’s economy relies heavily on tobacco exports. Various initiatives are underway to diversify the nation’s economy, including projects sponsored by tobacco companies trying to develop supplemental income streams as global demand for cigarettes stagnates.

  • Cigarette Business Boosts ITC Performance

    Cigarette Business Boosts ITC Performance

    Photo: sdx15

    Higher cigarettes sales boosted ITC’s overall revenue from operations 7.2 percent to INR182.20 billion ($2.17 billion).

    Net cigarette segment revenue grew 7 percent and segment profit before interest and tax was up 6.5 percent year on year.

    In a statement, ITC said it fortified its product portfolio through “innovation and democratizing premiumization across segments backed by superior on-ground execution.”

    The company reported strong performance in its differentiated variants and premium segment and  sequential improvement in its value segment.

    It said it mitigated the sharp escalation in costs of leaf tobacco and certain other inputs through improved mix, strategic cost management and calibrated pricing.

    The company attributed the strong performance of its cigarette business in part to the India’s stable tax environment.

    “ s seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector,”  the company wrote.

  • ID Fraud Widespread: Survey

    ID Fraud Widespread: Survey

    Photo: Nok

    Nearly half (45 percent) of participants in a survey among adults aged 18-25 in the U.S. reported knowing someone who successfully used a fake ID to gain access to age-restricted products, such as tobacco, according to a new report by Scandit.

    The survey, which encompassed over 2,000 respondents across all 50 states, also found that 71 percent of respondents said it was either “very easy” or “somewhat easy” to acquire a fake ID and over 30 percent admitted to considering or buying a fake ID themselves. This issue is exacerbated in places with stricter regulations and a higher population of college students, with New England landing as the region with the highest percentage of under-21s considering fake IDs (45 percent) and the highest rate of successful fake ID use at 59 percent across the age range surveyed.

    “The widespread use of fake IDs presents a significant financial, compliance and reputational challenge for many businesses across the U.S., underscoring the need for greater vigilance and ensuring employees are better trained on and equipped for ID verification,” said Scandit CEO Samuel Mueller.

     

  • Thailand: Call for Targeted Vape Law

    Thailand: Call for Targeted Vape Law

    Photo: Looker Studio | Carsten Reisinger

    Thailand should create a law specifically targeting vaping, Deputy Public Health Minister Thanakrit Jitareerat told the National Health Commission Office on Aug. 1, according to a report in The Taiger.

    With various agencies independently enforcing measures based on different laws, Thailand has been unable to halt the spread of vaping, according to the minister.

    “The measures we have rolled out to date have proved ineffective, so a specific law on the matter must be drafted as soon as possible, describing vaping as a serious threat to society,” Jitareerat was quoted as saying.

    National Health Commission Office Chairman Banjerd Singkaneti countered that the government should refine existing laws to provide clearer guidelines for authorities.

    “In the long run, possession of e-cigarettes should be clearly prohibited by law so that the police will have no excuse not to pursue legal action,” Banjerd said.

    The Office of the Consumer Protection Board seized 100,000 illegal e-cigarettes in 2023, up from 27,000 in 2020.

  • Role for Social Workers in Harm Reduction

    Role for Social Workers in Harm Reduction

    Photo: pressmaster

    Social workers should be given the tools to promote tobacco harm reduction as a means to reverse the high smoking rates found in many of the populations with whom they interact, according to a new briefing paper by Knowledge Action Change (KAC)

    In 2021, according to the World Health Organization, two-thirds of people with severe mental health conditions were people who smoked and in those experiencing schizophrenia rates can reach as high as 70-80 percent. People who use illicit drugs are also three times more likely to smoke cigarettes compared to non-users. One study in California found that smoking-related conditions comprised around 40 percent of total deaths among people hospitalized with cocaine, opioid and methamphetamine disorders.

    The KAC briefing paper explores how, in countries where they are affordable and available, switching from smoking to the use of safer nicotine products could have dramatic positive effects for those supported by social workers.

    “Social workers around the world regularly work with individuals who are more likely than the general population to smoke, for example people experiencing mental health and substance use issues,” said KAC Director David Mackintosh in a statement.

    “However, few countries train social workers to support those who want to quit smoking. This is a missed opportunity for both individuals in need and the public health system. Equipping social workers with the tools to provide trusted information and advice on tobacco harm reduction options would benefit their clients, as well as their families and communities. It would save lives. The potential is massive, especially in countries where smoking cessation services are rare, non-existent or expensive to access.”

  • Tobacco Firm Fined $181 Million in Turkey

    Tobacco Firm Fined $181 Million in Turkey

    Credit: Olga Demina

    The Turkish tax inspection authority has issued a record fine of 6 billion Turkish Liras ($181.2 million) to a tobacco manufacturer for unreported revenue. This is part of a comprehensive audit of large taxpayers by the Treasury and Finance Ministry.

    In accordance with Minister Mehmet Şimşek’s principle of “taxing the wealthy more,” inspectors from the Tax Audit Board have been conducting ongoing audits. They have started thorough tax inspections using the “yield analysis” method to determine the actual production output of businesses.

    This method involves analyzing the materials used in manufacturing, other production inputs, finished goods, and outputs that should have been produced. As a result, a yield analysis and inventory audit were carried out for a company involved in tobacco production.

    The calculations considered the capacity and operational hours of the cigarette production lines, along with the company’s consumption data for natural gas, tobacco, and cigarette filters. The audit results revealed that the company had generated unreported revenue, according to media reports.

    Certain documents within the company were not included in the legal ledger records and declarations. Moreover, the authorities determined that excise and value-added taxes on the cigarettes, despite being invoiced, were not reflected in the declarations.

    After the audit, the company was fined around 6 billion Liras, and the amount is expected to increase due to late payment interest. The minister announced that tax inspectors have started simultaneous inspections of 707 jewelers in nine major cities.

  • Fifth Circuit Vacates Denials Citing ‘Triton’

    Fifth Circuit Vacates Denials Citing ‘Triton’

    The 5th Circuit Court of Appeals granted petitions for review to five vaping companies, citing its own decision in the Triton Distribution case as precedent.

    The court sent the company’s marketing denial orders (MDOs) back to the U.S. Food and Drug Administration for additional scientific evaluation. As a result, the manufacturers may keep selling their products until the agency completes new reviews of their premarket tobacco applications (PMTAs), or until the Supreme Court takes action.

    “Specifically, the court determined that (1) FDA did not give e-cigarette manufacturers fair notice of the rule requiring long-term studies for PMTAs; (2) FDA did not acknowledge or adequately explain its change in position; and (3) FDA ignored reasonable and serious reliance interests that manufacturers had in the pre-MDO guidance,” the 5th Circuit wrote in its ruling.

    Five companies, Cloud House, Paradigm Distribution, SWT Global Supply, Vaporized and SV Packaging first challenged their MDOs in court in October 2021. The court consolidated the five cases, and in November 2021, all petitioners were granted stays pending review.

    In January, the 5th Circuit found in favor of Wages and White Lion Investments (doing business as Triton Distribution) in the e-liquid manufacturer’s appeal of an MDO. The FDA later petitioned the Supreme Court to review the 5th Circuit’s ruling, and last month the Supreme Court agreed to hear the agency’s appeal.

    The FDA challenged the Triton decision, and the U.S. Supreme Court agreed to hear that case. “But now another panel of the Fifth Circuit has applied the same rationale as in Triton to hold that these five, small-business manufacturers prevail for the same reason: FDA pulled a surprise switcheroo,” wrote the United States Vaping Association on X.

    The 5th Circuit found that the recent petitions posed the same issues as Triton’s. “Petitioners spent substantial time and resources preparing their PMTAs based on FDA guidance that they would not need to submit long-term clinical studies,” the court wrote.

    “Nevertheless, FDA rejected their PMTAs using the same boilerplate language it used for the Wages petitioners’ denials, as well as those of thousands of other e-cigarette manufacturers. Accordingly, for the reasons amply explained by the en banc court in Wages, we hold that FDA acted unlawfully here as well by denying Petitioners’ PMTAs based on the absence of long-term clinical studies.”

  • JT Group Profit Up

    JT Group Profit Up

    Masamichi Terabatake

    The JT Group reported revenue of ¥1.6 trillion ($10.63 billion) for the second quarter of 2024, up 12.7 percent over the comparable 2023 period. Profit increased by 6.3 percent to ¥305.2 billion.

    “The JT Group posted another strong set of results for the first half, driven by continued market share gains and solid pricing in the tobacco business,” said President and CEO Masamichi Terabatake in a statement.

    “Total volume increased by 2 percent year-on-year, with combustibles growing 1.7 percent and RRP [reduced risk products] up by a strong 25.5 percent. RRP volume was mainly driven by Ploom in the HTS segment, our investment priority, resulting in RRP-related revenue increasing by approximately 29 percent year-on-year.

    “In the Japanese market, Ploom volume increased approximately 36 percent year-on-year, growing at a faster pace than total HTS demand in the market. Additionally, the geo-expansion of Ploom has now reached 21 markets, with sales volumes in markets outside Japan also steadily increasing.

    “For the full-year performance forecast, we have revised our adjusted operating profit at constant FX [foreign exchange rates] upward, reflecting the positive momentum in the first half. On a reported basis, we have also revised our forecast upward, considering the continued impact of the current positive foreign exchange trend.”