Category: Featured

KT&G Aims to Become Carbon Neutral by 2050

KT&G CEO Bok-In Baek
KT&G has declared its goal of becoming carbon neutral by 2050 by reducing its greenhouse gas emissions.
First, KT&G is planning to reduce the greenhouse gas emissions by 20 percent by 2030 compared to the levels in 2020. To achieve carbon neutrality, KT&G plans to expand its scope of environmental responsibility not only to the workplace, but also to the entire chain, from raw materials to production and sales.
It will promote the expansion of renewable energy, improvement of energy efficiency and support energy efficiency improvement of leaf tobacco farms. In the mid-term to long-term, KT&G plans to engage in external greenhouse gas reduction projects in connection with domestic and overseas value chains and put forth effort to secure Certificated Emissions Reduction.
KT&G has also decided to reduce water consumption by 20 percent by 2030 compared to the levels in 2020 and to achieve 90 percent in waste recycling rate by 2030, accelerating the transition of the circular economy.
Meanwhile, KT&G is speeding up its environment, society and governance (ESG) ambitions by implementing environmental management that values a sustainable future. Last month, KT&G announced a plan to reduce greenhouse gases by more than 20,000 tons by converting business vehicles into eco-friendly vehicles, such as electric vehicles, by 2030.
“We have established a mid-[term] to long-term environmental management strategies, including carbon neutral, to recognize the magnitude of the climate change problem and to participate in global efforts to respond to the crisis,” said a KT&G spokesperson in a statement. “We will continue to actively participate in solving social and environmental issues and make additional efforts to establish an ESG management system that meets the global standards.”
May 17, 2021
PMI Recognized for ESG Strategy

Photo: patpitchaya
S&P Global Ratings’ ESG Evaluation report has assessed Philip Morris International’s (PMI) approach to environmental, social and governance (ESG) topics and confirmed that PMI has positively differentiated itself within the tobacco sector.
The S&P Global Ratings ESG evaluation assesses a company’s ESG strategy and ability to prepare for potential future risks and opportunities and provides a forward-looking, long-term opinion of a company’s readiness for disruptive ESG risks and opportunities.
It provides an overall score that allows comparison with other entities globally, including sector peers, and consists of a combined sector/region score, an entity-specific score and a preparedness score.
Based on entity-specific scores—designed to indicate how a company is actively and effectively managing its exposure to ESG risks and opportunities compared with its industry peers—PMI is placed third in the E-entity specific score, eighth in the S-entity specific score and 15th in the G-entity specific score among all 25 current publicly available ESG evaluations.
“I am proud that our dedication to sustainability, which is fundamental to the transformation of our company, has been recognized externally by S&P Global Ratings,” said Emmanuel Babeau, chief financial officer at PMI, in a statement.
“It is our firm belief that sustainability and business performance do not follow separate paths—they are fully interrelated and mutually reinforcing and should be organized and presented to all stakeholders, including shareholders, in an integrated way.”

Sustainability and business performance do not follow separate paths—they are fully interrelated and mutually reinforcing.
Emmanuel Babeau, CFO, PMI
In February 2021, PMI announced an increased ambition for the contribution of its smoke-free products to total net revenues to more than 50 percent in 2025, meaning that in five years, cigarettes would account for less than half of PMI’s total net revenues.
The company also stated its aspiration to commercialize its smoke-free products in a total of 100 markets by the end of 2025, up from 64 at the end of 2020. Additionally, PMI announced an aspirational target of at least $1 billion in annual net revenues from “beyond nicotine” products by 2025.
This new aspiration reflects additional growth potential and further acceleration of the company’s transformation, leveraging PMI’s significant capabilities within life sciences, device technology, consumer expertise and more.
“The company has made significant R&D investments, by sector standards, and is upskilling its management team to prepare for this transition. In our view, the company is well placed to meet its ambitions,” S&P Global Ratings said.
“We believe PMI is adequately prepared for future disruptions, reflecting its significant investments in [reduced-risk products (RRPs)], which smokers seem to accept as an alternative to cigarettes, and its solid track record of strategic execution despite headwinds.”
S&P also recognized PMI’s “approach to customer engagement—unique among its peers—which educates consumers directly about the health consequences of sustained tobacco use and supports low-income customers in making the transition from cigarettes to reduced-risk products.”
Later this month, PMI will release its 2020 Integrated Report, which details how the organization’s strategy, governance, performance and prospects create value over the short, medium and long term.
May 17, 2021
FDA Invites Comments on IQOS 3 Application

Photo: Кузнецова Евгения
The U.S. Food and Drug Administration (FDA) today opened a public comment period on Philip Morris International’s application seeking authorization to market the IQOS 3 electrically heated-tobacco system as a modified-risk tobacco product (MRTP).
PMI’s application requests the same reduced exposure modification orders granted on July 7, 2020, for the IQOS 2.4 system—the first, and only, electronic nicotine product to be granted marketing orders through the FDA’s MRTP process. To authorize MRTP consumer communications, the FDA’s Center for Tobacco Products is required by law to conclude that a product is appropriate to promote the public health.
The IQOS 3 device contains a number of technological advancements compared to the IQOS 2.4 device, including longer battery life and quicker recharge between uses. It was authorized for sale in the U.S. via the FDA’s premarket review process on Dec. 7, 2020, having met the standard that permitting its sale is appropriate to protect public health.

This application underscores PMI’s ongoing commitment to make new innovations available to American adult smokers through the FDA process.
Jacek Olczak, CEO, PMI
“PMI is fully committed to a smoke-free future, one where we completely replace cigarettes with scientifically substantiated smoke-free alternatives that are a better choice for adults who would otherwise continue smoking,” said PMI CEO Jacek Olczak.
“Our commitment to a science-based future is unmatched, having invested more than $8 billion since 2008 on smoke-free products. This application underscores PMI’s ongoing commitment to make new innovations available to American adult smokers through the FDA process; the confidence we have in our science; and our belief that public scrutiny and open engagement with governments is vital to achieving a smoke-free future.”
May 14, 2021
FDA to Discuss Scientific Reviews

Photo: Grandbrothers
The U.S. Food and Drug Administration Center for Tobacco Products (CTP) will host a virtual meeting June 11 from 13:00 to 15:30 Eastern Daylight Time. The meeting will discuss the scientific review of tobacco marketing applications received by Sept. 9, 2020. It will focus on the application intake process, review progress and allocation of review resources. There will be time allotted for audience questions as well.
Matt Holman
The meeting will feature a presentation from CTP Office of Science Director Matt Holman and include a question-and-answer session. Other Office of Science staff participating in the meeting include Todd L. Cecil, deputy director for regulatory management; Crystal Allard, director for the division of regulatory science and informatics; Joanna C. Randazzo, D.C., acting chief for the science policy branch; and Cristi Stark, director of the division of regulatory project management.
The CTP Office of Science is responsible for identifying, developing and enhancing the science related to tobacco products, their use, and the resulting morbidity and mortality so that regulatory decisions will have the greatest impact on improving public health.
The Office of Science provides the scientific support for regulations and guidance, reviews tobacco product applications, evaluates the knowledge basis for regulatory decisions and carries out research to fill the gaps in scientific knowledge related to tobacco product regulation.
For more information, click here.
May 14, 2021
Graphic Packaging Acquires AR Packaging

Photo: Alexas Fotos | Pixabay
Graphic Packaging Holding Co. will acquire AR Packaging Group, Europe’s second largest producer of fiber-based consumer packaging, for approximately $1.45 billion in cash.
The combination enhances Graphic Packaging’s global scale, innovation capabilities and value proposition for customers throughout Europe and bordering regions. With a broad set of industry-leading packaging solutions, design expertise and expanded geographic reach, the combined company will be uniquely positioned to capture continued organic growth opportunities across existing and new global customers and markets.
The proposed acquisition of AR Packaging is expected to add $1.1 billion in annual sales and $160 million in annual adjusted EBITDA. In addition, the combination is expected to drive total synergies of $40 million over 36 months following close. The deal is expected to be immediately accretive to the company’s earnings per share and cash flow.
“AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe,” said Michael Doss, Graphic Packaging’s president and CEO, in a statement.
“Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design.
We are pleased to welcome the AR Packaging team as we work together to advance our commitment to sustainable packaging solutions in support of the move to a more circular economy.
Michael Doss, president and CEO, Graphic Packaging
“The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally. We are pleased to welcome the AR Packaging team as we work together to further advance our commitment to sustainable packaging solutions for global consumers in support of the move to a more circular economy.”
“I am proud of the progress we have made in establishing a clear strategy and building AR Packaging into a respected provider of packaging solutions,” said AR Packaging President and CEO Harald Schulz. “Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner.
“The ability to leverage beneficial value chain integration, from paperboard manufacturing to carton converting, provides increased possibilities to offer sustainably optimized solutions to our customers. Our team looks forward to joining with the Graphic Packaging team to become the premier global provider of sustainable fiber-based packaging solutions.”
May 14, 2021
Counterfeit Operation Dismantled in France

Photo: Europol
French law enforcement officers have arrested five individuals and seized 250,000 counterfeit cigarettes in a series of raids in Nantes.
This action follows an earlier one on April 9, which saw seven other members of the same organized crime group arrested in the cities of Nantes, Rodez and Montpellier. On this occasion, close to 5 tons of counterfeit cigarettes were seized alongside €37,000 ($44,720) in cash.
This organized crime group received the illegal cigarettes from two criminal networks based abroad, arranged for their storage in various cities in France and then managed their subsequent distribution through several criminal wholesalers—composed mostly of Georgian, Armenian and Ukrainian nationals—onto the French black market.
The same organized crime group was also involved in the management of payments and the corresponding financial flows. This criminal group has now been fully dismantled, according to Europol.
Since the start of the investigation, the French investigators collected evidence that more than 75 tons of counterfeit cigarettes were imported and distributed throughout France for a loss to the French budget estimated close to €22 million.
Europol’s Analysis Project Smoke supported this investigation and organized coordination meetings with the national investigators involved to discuss procedural requirements and identify a way forward.
Its experts also organized the intensive exchange of information needed to prepare for the action days in France.
This investigation was carried out in the framework of the European Multidisciplinary Platform Against Criminal Threats.
May 13, 2021
Ireland: Forest slams outdoor smoking ban

Photo: be free
Forest Ireland has slammed a government health plan that aims to extend the smoking ban to outdoor areas.
“There is no justification for banning smoking in outdoor spaces,” said John Mallon, spokesman for Forest Ireland, in response to the Healthy Ireland Strategic Action Plan 2021–2025, which was published May 11. “Smoking in the open air poses no health risk to anyone other than the smoker. Coming out of the pandemic, the last thing the hospitality industry needs is the threat of smoking being prohibited outside pubs, cafes and bars.”
The action plan would “promote and oversee implementation of the Tobacco Free Ireland Policy,” which includes “progress[ing] and expand[ing] the creation of tobacco-free spaces in community settings,” along with other targeted actions.
“Tobacco is a legal product, and smokers have a right to light up in outdoor spaces without restrictions designed to force them to quit,” Mallon said in a Forest press note. “The war on smoking has become a war on ordinary people who just want to be left alone to live their lives as they choose without excessive government intervention.”
May 13, 2021
BAT to Produce HNB Products in Croatia

Photo: burnel11
British American Tobacco (BAT) will invest HRK200 million ($32.07 million) to produce heated-tobacco products (HTPs) at its factory in Kanfanar, Croatia, reports Total Croatia News.
The multinational revealed its plans during a May 12 visit to its facility by Prime Minister Andrej Plenkovic.
“By expanding production in Kanfanar and opening a hub in Rijeka, we are continuing with BAT’s significant investments in Croatia,” said BAT Adria director Zvonko Kolobara.
“With the introduction of production lines for new product categories, Croatia is additionally strengthening its position on the global map of production sites in the tobacco industry. We are continuing to expand our selection for consumers in Croatia.”
The increased capacity in Kanfanar will help BAT meet growing demand for HTPs in Europe and northern Africa.
Plenkovic expressed satisfaction at BAT’s continued investments in Kanfanar.
“The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy,” he said.
“The company employs 1,600 people, and another 800 cooperate closely with BAT and make a living that way. The investment plans have been coordinated with their headquarters in London, and all the employees at the factory will be satisfied while the entire economy of Istria County will benefit from BAT’s operations.”
The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy.
Andrej Plenkovic, prime minister, Croatia
In June 2020, BAT suggested it might relocate its Kanfanar factory to another country due to unfavorable business conditions. The government then embarked on a campaign to keep the multinational in Croatia.
Plenkovic stressed that the new investment reflected Croatia’s good business climate, not government pressure.
May 13, 2021
Malawi President Urges Diversification

Photo: Taco Tuinstra
Malawi’s president, Lazarus Chakwera, urged a switch to high-growth crops like cannabis, stating that tobacco, the country’s leading foreign exchange earner, was in terminal decline, reports Reuters.
Chakwera said tobacco was expected to earn less than $200 million in 2021, below previous earnings of $350 million.
“The inconvenient truth … is that while Malawi has come a long way by relying on tobacco as our … largest single crop contributor to our GDP, this reliance is now seriously threatened by declining demand worldwide,” Chakwera said. “Clearly, we need to diversify and grow other crops like cannabis, which was legalized last year for industrial and medicinal use.”
Last February, Malawi’s parliament passed a bill legalizing cultivation and the processing of cannabis for medicines and hemp fiber used in industry. It did not decriminalize recreational use, however.
The agriculture ministry will “search for a basket of alternative crops so that by 2030, Malawi can do away with its reliance on tobacco,” according to Chakwera.
Zimbabwe also recently changed regulations to encourage investment into cannabis. Zimbabwe’s new rules will allow investors to wholly own cannabis businesses instead of partnering with the government. Cannabis will now also be allowed to be produced anywhere in Zimbabwe instead of just in restricted locations. According to a government statement, investors can keep export earnings in U.S. dollars for up to four years.
May 13, 2021
Forum on Nicotine to Convene in Liverpool

Photo: alpegor
KAC Communications will be hosting the Eighth Global Forum on Nicotine (GFN) from June 17–18 at the Crowne Plaza Hotel in Liverpool, U.K. With its theme “The future for nicotine,” the GFN tackles the challenges and controversies, as well as the significant potential, of safer nicotine products. Participants can choose whether to attend in person or online. In-person registration costs £60 ($84.23) for two days, and online registration is free.
A new GFN∙TV online platform will stream broadcast footage of the conference free to viewers around the world, with a new commentary team offering their insights.
The GFN will feature more than 30 speakers from diverse backgrounds, including consumers, advocates, policy experts, public health specialists and medical professionals. All sessions will be live, with speaker presentations available on the GFN website before the event.
“It’s a fallacy that tobacco control and harm reduction are irreconcilable as many believe—they’re complementary,” said Paddy Costall of KAC Communications. “While tobacco control has reduced smoking rates in many places, it’s got its limits. In the U.K. and elsewhere, it’s been shown that access to appropriately regulated safer nicotine products helps people stop smoking.
“At GFN, we offer an inclusive platform to discuss all aspects of nicotine use, and we believe it’s important that no one is excluded from the debate. With one billion smoking-related deaths predicted by the end of this century, it’s time for ideology to make way for pragmatism.”
For more information, visit https://gfn.events.
May 13, 2021