Category: Featured

Altria Reports First-Quarter 2021 Results

Photo: Kristina Blokhin
Altria Group reported net revenues of $6.03 billion in the first quarter of 2021, down 5.1 percent from the comparable 2020 quarter. The decline was driven primarily by lower net revenues in the smokable products segment.
Net revenues net of excise taxes were $4.88 billion, 3.3 percent lower than in last year’s quarter. Reported diluted earnings per share declined 7.2 percent to $0.77, primarily driven by losses on early extinguishment of debt from a debt liability management transaction, a decrease in the estimated fair value of Altria’s investment in Juul and higher acquisition-related costs, partially offset by higher reported operating companies’ income (in the wine segment and favorable Cronos-related and ABI-related special items).
“We are off to a strong start to the year and believe our businesses are on track to deliver against full-year plans. Against a challenging comparison, our tobacco businesses performed well in the first quarter and we continued to make progress advancing our noncombustible portfolio,” said Billy Gifford, Altria’s CEO, in a statement.
“This morning, we announced another important milestone in Altria’s journey in ‘moving beyond smoking.’ We now have full global ownership of On! oral nicotine pouches as we recently closed transactions to acquire the remaining 20 percent global interest.”
“We would like to honor the memory of Tom Farrell, our late chairman of the board. Tom served 13 distinguished years on our board, offered valuable insights and guidance during his tenure and was a true visionary. We will miss his leadership, contributions and friendship.”
In March, Altria Group announced that Thomas F. Farrell II would retire from the company’s board of directors following the completion of his current term. Farrell has been a director of Altria since 2008.
April 29, 2021
Reports: Biden Likely to Ban Menthol

Photo: kasetch
The Biden administration is likely to announce its intention to ban menthol cigarettes tomorrow, people familiar with the plan told CBS News. Such a move would have considerable impact on the tobacco industry because menthol cigarettes account for roughly one-third of the U.S. cigarette market. Approximately 20 million Americans smoke menthols, according to the Food and Drug Administration.
Mentholated cigarettes have been marketed in the U.S. since the 1920s. Critics want to see them banned because they believe that, by masking the harshness of tobacco smoke, menthol makes it easier to start smoking and harder to quit. While overall smoking has trended downward in recent years, menthol declines have dragged behind other products. The tobacco industry insists that menthol cigarettes are no more harmful to health than nonmenthol cigarettes.
Cigarette manufacturers have also come under fire for marketing menthol cigarettes disproportionately to Black Americans, highlighting racial inequities. More than 85 percent of Black smokers report using menthol products, as do more than half of all youth who smoke, according to government data.
The 2009 Family Smoking Prevention and Tobacco Control Act empowered the FDA to regulate cigarette ingredients. The agency duly banned characterizing flavors in cigarettes. However, it exempted mentholated cigarettes, citing concerns about illicit sales, among other considerations.
In 2011, the FDA’s Tobacco Products Scientific Advisory Committee concluded that “removal of menthol cigarettes from the marketplace would benefit public health in the United States,” but the additive remained on the market. In early 2020, the Trump administration again gave menthol a pass when it banned characterizing flavors in vapor products.
While the U.S. wavered, other jurisdictions charged ahead. Brazil outlawed menthol along with all flavored cigarettes in 2012, followed by Turkey in 2015 and the European Union and the United Kingdom in 2020.
Tired of what they perceived as FDA foot-dragging, anti-smoking and racial justice groups sued the agency. The judge in the case instructed the FDA to respond to this citizens’ petition by April 29.
There is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking.
Benjamin Chavis, president and CEO, NNPA
Advocates of the ban say the decision about whether to move ahead is ultimately President Biden’s. Banning menthol cigarettes has Democratic support in Congress too. Senator Dick Durbin, Representative Raja Krishnamoorthi and Representative Bobby Rush recently argued that the FDA has a “duty” to ban menthols. “These failures to protect children, particularly African American children, from a path to addiction are inexcusable,” they told the administration.
If enacted, a ban would not take effect overnight. Industry analysts expect the implementation of any plan to remove menthol cigarettes from the U.S. market to take years. The FDA, which does not yet have a permanent commissioner in place, would have to go through a lengthy rulemaking process, consider potential consequences, such as illegal sales and racial injustice, and solicit public input.
“In essence, such an announcement would simply be a way to tell the public, as well as the tobacco industry, that the agency intends to ban the flavoring in cigarettes,” Pebbles Fagan, the director of the Center for the Study of Tobacco at the University of Arkansas for Medical Sciences, told NBC News. “The rulemaking process would likely take several years to finalize and implement. That would provide time to boost smoking cessation programs targeting menthol smokers.”
The American Civil Liberties Union and dozens of other criminal justice groups warned the White House and Health and Human Services Secretary Xavier Becerra that a ban on menthol cigarettes would have “serious racial justice implications.”
The National Newspaper Publishers Association (NNPA), representing more than 200 African American-owned community newspapers from around the United States, and leading Black and Hispanic law enforcement executives, too, have urged the FDA to keep menthol cigarettes legal.
“It is clear that there is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking,” says Benjamin Chavis, president and CEO of the NNPA. “In fact, the unintended consequences of such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.”
Supporters of barring menthol products say that a federal ban would focus on retailers selling products and would not criminalize personal use or possession. But critics say that it could be inevitable as a black market grows for illegal cigarettes.
Biden has pledged to address racial inequities in both criminal justice and healthcare, setting up for what could be an intense balancing act with critics arguing that a ban could increase police brutality and the incarceration of Black Americans.
April 28, 2021
New Director and GM for Parkside Asia

Paula Birch
Parkside has appointed Paula Birch director and general manager of the company’s Asian operations. Effective immediately, Birch will take up the new position alongside her current global sales director role—a position she has held for the last two years.
Birch will relocate to Kuala Lumpur, Malaysia, to drive new business opportunities in key packaging markets, including tobacco and food, across the Asian region.
“At Parkside, we pride ourselves on being industry-leading innovators across the print and packaging sectors,” said Birch. “I am delighted to take up this new role in a significant growth period in the Asian market and show just what our business is capable of. With emergent technologies and process efficiencies being implemented at our Malaysian site, coupled with increasing demands for compostable, recyclable and lightweight, flexible packaging solutions, I’m excited about what the future holds for us as a business.”
I am delighted to take up this new role in a significant growth period in the Asian market and show just what our business is capable of.
Paula Birch, director and GM, Parkside Asia
Over recent years, Parkside has repositioned its brand and service offering, gaining a strong foothold in the European food packaging sector.
The business is renowned for its focus on sustainable, flexible packaging solutions. Birch will implement this strategy in the Asian packaging market while building on its reputation for tobacco packaging in the region.
“We are delighted to see Paula progress into her new role,” said Robert Adamson, managing director of Parkside. “Her extensive experience is invaluable in supporting the company’s growth and innovation strategy across Europe and Asia. Paula is a shining example of our values at Parkside being committed, innovative, hardworking and never afraid to challenge the norm. She represents the quality of personnel we aim to attract at Parkside, and we are excited by her potential to propel the business forward.”
April 28, 2021
Malawi Minister Furious Over Rejections

Photo: africa
Malawi Minister of Agriculture Lobin Lowe has summoned representatives of all tobacco stakeholders to discuss the high rejection rate, reports The Nyasa Times. Up to 72 percent of bales brought to auction were being rejected at the newspaper’s press time.
Lowe urged farmers to deliver high-quality tobacco and to avoid child labor, which international tobacco buyers frown upon. What’s more, he encouraged tobacco growers to diversify into crops such as soya, groundnuts and cotton to reduce their dependency on the golden leaf.
Lowe echoed sentiments expressed earlier by Malawi President Lazarus Chakwera. During the opening ceremony of 2021 tobacco selling season on April 20, Chakwera said there was no future in tobacco due to declining demand.
Chakwera said Malawi tobacco growers should switch to other cash crops like cannabis, which Malawi legalized last year for industrial and medicinal use.
April 28, 2021
Justice Advocates Plead to Keep Menthol Legal

Photo: Fractal Pictures
The National Newspaper Publishers Association (NNPA), representing more than 200 African American-owned community newspapers from around the United States, and leading Black and Hispanic law enforcement executives are urging the Food and Drug Administration to keep menthol cigarettes legal. The FDA must respond by April 29 to a citizen’s petition demanding menthol cigarettes be banned nationwide.
“It is clear that there is no factual basis to assert that a menthol cigarette ban will stop people of color from smoking,” says Benjamin Chavis, president and CEO of the NNPA. “In fact, the unintended consequences of such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.”
According to the NNPA and its fellow petitioners, daily interactions between police and people of color demonstrate that a menthol ban would give police pretext to approach a smoker to find out where cigarettes were purchased in order to get to the seller of the counterfeit tobacco.
“In recent times, the world has seen far too many cases of these encounters lead to verbal and physical altercations and often fatal results,” the NNPA wrote in a press release.
Such a racially discriminatory ban will set the stage for more negative and more likely counterproductive interactions between law enforcement and people of color.
Benjamin Chavis, president and CEO, NNPA
According to the U.S. Surgeon General report on smoking cessation, “the evidence is suggestive but not sufficient to infer that restricting the sale of certain types of tobacco products, such as menthol or other flavored products, increases smoking cessation, especially among certain populations.”
The organizations are requesting that the FDA exhaust all other options before completely removing menthol cigarettes from legal, regulatory channels.
The citizens’ petition demanding a menthol ban was filed by the African American Tobacco Control Leadership Council and Action on Smoking and Health, which contend that tobacco companies have specifically targeted Black Americans with menthol cigarettes.
April 28, 2021
New Chairman at British American Tobacco

Luc Jobin (Photo: BAT)
Luc Jobin succeeds Richard Burrows as chairman of BAT today. Jobin joined the BAT board in 2017 as an independent nonexecutive director. His previous positions include president and CEO of Canadian National Railway Co., executive vice president of Power Corp. of Canada and CEO of Imperial Tobacco Canada.
Speaking at BAT’s annual general meeting, Burrows said his successor would inherit “a strong business that is transforming, has excellent momentum and is well placed to deliver sustainable growth for many years.”
BAT delivered constant currency revenue growth of 3.3 percent, above its revised 1 percent to 3 percent guidance range. On a constant currency adjusted basis, profit from operations grew by 4.8 percent. Operating margin grew by 100 basis points to 44.1 percent including the impact of currencies.

BAT is well positioned for future success with Luc as chairman and Jack Bowles as chief executive.
Richard Burrows
Reduced-risk “new category” products delivered £1.4 billion ($1.94 billion) in revenues in 2020, representing 15 percent growth at constant rates compared with 2019. The company is on track to meet its £5 billion new category revenue ambition by 2025.
Burrows expressed strong confidence in BAT’s future under Jobin’s leadership.
“Luc brings a wealth of experience, including significant financial, regulatory and consumer business acumen. Having worked closely with him in his role as a nonexecutive director over the last three years, I know that BAT is well positioned for future success with Luc as chairman and Jack Bowles as chief executive,” he said in a statement.
“I retire as chairman with many fond memories and the last year, in particular, has demonstrated the unwavering resolve of the people in BAT. From every level in the business, right through to our management board, ambition, talent, passion and enthusiasm are what drives BAT’s delivery. I look forward to the company’s continued success.”
April 28, 2021
TPB Ups Guidance After Strong Quarter

Image: Paulista
Turning Point Brands (TPB) reported net sales of $107.6 million and gross profit of $53.3 million for the first quarter ended March 31, 2021, up 18.7 percent and 28.6 percent, respectively. Net income increased $7.3 million to $11.8 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 57.4 percent to $28 million.
“Our first-quarter results demonstrated solid execution with year-over-year growth significantly outpacing our end markets,” said Larry Wexler, president and CEO of TPB, in a statement. “Zig-Zag led the way with a second consecutive quarter with over 40 percent growth, and Stoker’s delivered another double-digit growth quarter led by our MST business. As such, our core segments are continuing to perform well despite the tough comparables from the previous year period.
“NewGen had a solid growth quarter as it maintains optionality for long-term upside through its PMTA submissions.
“We are also excited about our recent investment in Docklight Brands, which increases our exposure in the cannabis space and boosts our portfolio through the addition of the Marley CBD products line.”
Our first-quarter results demonstrated solid execution with year-over-year growth significantly outpacing our end markets.
Larry Wexler, president and CEO, TPB
With the strength of the first-quarter results, TPB is revising its guidance provided on Feb. 10, 2021.
TPB projects net sales of $422 million to $440 million (up from previous guidance of $412 million to $432 million), which assumes strong double-digit sales growth for Zig-Zag products (up from previous guidance of double-digit sales growth); high single-digit sales growth for Stoker’s products (unchanged); mid to low single-digit declines for NewGen products (up from previous guidance of mid-single-digit sales declines), which includes single-digit declines for vape distribution (up from previous guidance of double-digit declines) offset by growth in Nu-X adjusted EBITDA of $103 million to $108 million (up from previous guidance of $99 million to $105 million).
For the second quarter of 2021, TPB projects net sales of $103 million to $109 million.
April 28, 2021
SHEER Opinion on Novel Products Due Friday

Photo: andriano_cz
The European Commission’s Scientific Committee on Health, Environmental and Emerging Risks (SCHEER) is due to present its opinion on novel tobacco products Friday.
The opinion is part of an assessment of the EU Tobacco Products Directive (TPD), which will determine whether e-cigarettes will be treated the same way as traditional cigarettes.
SHEER’s preliminary opinion published in September 2020 drew strong criticism of several stakeholders who accused the EU of being selective in its findings when it comes to their health implications.
“Research in recent years, after the adoption of TPD in 2014, has become increasingly positive about e-cigarettes, always as a substitute for smoking,” Konstantinos Farsalinos of the University of Patras told Eurarchiv. “Compared to 2014, one would expect a more positive attitude. On the contrary, EU policymakers remain scientifically unsubstantiated with the risk of sabotaging the efforts to replace smoking with e-cigarettes,” he said.
Pietro Fiocchi, a member of the European Parliament from the European Conservatives and Reformists Group, expressed concern about increased smoking if the EU Commission decides to equate novel tobacco products with traditional ones.
“My impression is that the Commission is against a differentiation between traditional tobacco and reduced-risk products, and it will plan to apply the same limitations through heavy regulations and fiscal impositions,” he said.
“We all agree that not smoking at all is the best solution, but it would be detrimental if SCHEER will ignore plenty of scientific studies that show much smaller health impact of reduced-risk products versus traditional tobacco,” said Fiocchi.
April 28, 2021
Researchers Urge Ban on Cigarette Filters

Photo: bumbumbo
The public health and environmental health communities should unite to ban cigarette filters for the benefit of both people and planet, according to the authors of a study from the University of Bath that was published in Tobacco Control.
Introduced in the 1860s to prevent tobacco flakes from entering the smoker’s mouth, cigarette filters were later marketed as tool to reduce the health risks from smoking. Research shows that filters do not reduce those risks, however, and may even increase them by enabling smokers to inhale more deeply, according to the authors.
In addition, filters are an environmental hazard. Every year, an estimated 4.5 trillion cigarette filters are deposited into the environment. Discarded filters are commonly made of cellulose acetate—a plastic losing on average only 38 percent mass in two years of decomposition—and contain toxic substances that may leach into the environment.
The study’s authors are skeptical about industry efforts to develop biodegradable filters, which they say would still leach harmful chemicals into the environment if discarded improperly.
What’s more, biodegradable filters could be used to promote smoking and improve the tobacco industry’s image. “It is likely that the tobacco industry will use biodegradable filters as both a corporate social responsibility and marketing opportunity,” the authors write.
It is likely that the tobacco industry will use biodegradable filters as both a corporate social responsibility and marketing opportunity.
Study “The Filter Fraud Persists”
The researchers also take issue with innovations such as recessed filters and “crush” filters, which they say are designed to make cigarettes more appealing and help tobacco companies circumvent advertising restrictions.
According to the study’s authors, the EU Single Use Plastics Directive missed a crucial opportunity by excluding cigarette filters from its upcoming ban on single-use plastics. “In the U.K., the tobacco industry’s new responsibility for smoking-related litter clean-up has already been used as an opportunity to have in-person interaction with the government, thereby exploiting this as a loophole in the WHO FCTC treaty,” they write.
This study was carried out by Karen Evans-Reeves, Kathrin Lauber and Rosemary Hiscock and supported by Bloomberg Philanthropies Stopping Tobacco Organizations and Products project funding.
Tobacco Reporter covered filter manufacturers’ efforts to meet new environmental requirements in its March issue (see “Keeping Pace“).
April 27, 2021
JTI Accused of Stealth ‘Social’ Advertising

Photo: Panuwat D
The Bureau of Investigative Journalism has accused Japan Tobacco International (JTI) of placing stealth advertisements for its tobacco products on Facebook and Instagram in Germany. Germany bans marketing tobacco to teenagers, and the social media platforms prohibit ads or branded content that promotes tobacco-related products.
JTI reportedly set up social media pages that look like lifestyle groups, appearing to center on events, travel and music. The pages were said to promote Camel, American Spirit and Winston cigarettes.
According to the Bureau of Investigative Journalism, “These pages—which are listed under ‘festival’ and ‘community’ in Facebook’s transparency section—use the fonts, color schemes and imagery associated with the brands without making any affiliation explicit, a technique known as alibi marketing.
“The practice appears designed as a workaround to skirt both Facebook’s rules and the German law stating that it is ‘illegal to use promotional information that is likely to encourage juveniles and young adults to engage in [tobacco] consumption.’”
“Our social media accounts represent customary activities within our industry,” JTI responded. “We use age restriction options on our platforms so that minors cannot visit our pages. Our closed communities are only accessible to registered adult smokers.”
The pages require users to enter their names, dates of birth and addresses, which are checked against official German records.
Facebook said no ad brought to its attention violated its policy.
April 27, 2021