Category: Featured

Trade Body Calls For Tax Stamp Clarity

Photo: Tobacco Reporter archive
The International Tax Stamp Association (ITSA) is urging greater clarity around the definition of the tax stamps used to secure excise revenues from tobacco products.
The move comes in the wake of the continued misuse of the term “tax stamp” by some sector solution providers, which is raising issues around specification and seem to contravene international standards.
The ITSA says there is a lot of confusion over specific terms, notably the difference between tax stamps and the security feature labels used by some member states under the EU Tobacco Products Directive (TPD).
The fundamental differences between tax stamps and secure labels pertain to functionality and the specifier/issuer. Stamps fundamentally serve a tax purpose and may fulfil other functions, such as those related to authentication, while secure labels should just be used for authentication purposes.
Tax stamps play an important role in securing revenues as international supply chains continue to be threatened by counterfeiters and smugglers look to take advantage of the pandemic to trade in illicit tobacco.
The latest figures indicate that the trade in fake tobacco is worth upward of $50 billion annually worldwide, according to a 2020 World Bank report, and accounts for approximately 600 billion illicit cigarettes per year.
ITSA’s call comes as most EU member states use tax stamps to comply with the TPD’s security feature requirements while in five other states plus the U.K., which do not use tax stamps, the tobacco industry has opted for secure labels to ensure conformance with the TPD.
Moreover, individual tobacco manufacturers contract directly with various printers for the provision of these labels rather than going through the national tax or other government authorities.
The current situation is further exacerbated by the misuse of terminology in other parts of the world. In India, for instance, there are reports that state excise departments use the terms “excise adhesive label” and “security hologram” to refer to the same thing, which is adding to the confusion and highlighting the need for strong action around definitions, the ITSA said.

Some sector solution providers continue to describe nontax labels as tax stamps when they are clearly not.
Juan Carlos Yanez, chair, ITSA
Juan Carlos Yanez, chair of the ITSA, said confusion reigns where there needs to be clarity. “The need for tax stamp programs has never been more timely as we see government revenues plummet, deficits rise and debt levels swell to eye-watering proportions in the face of the Covid pandemic.
“So the differences between tax stamps and nontax-related secure labels must be clear and unequivocal to remove the doubts. Yet, some sector solution providers continue to describe nontax labels as tax stamps when they are clearly not.
“Moreover, the use of the wrong terminology may contravene international standards and water down stringent recommendations of standards, notably ISO 22383:2020, covering guidelines for the selection and performance evaluation of authentication solutions for material goods, and ISO 22382:2018, covering guidelines for the content, security, issuance and examination of excise tax stamps.”
A tax stamp is defined by ISO 22382 as a “visible stamp, label or mark placed on certain types of consumer goods to show that the applicable excise tax has been paid.” This identifies the key and unique function of a tax stamp, which is to show that the required tax on the item that the stamp is affixed to has been paid—the stamp acts as a receipt. It also recognizes that stamps may have other functions including those relating to legislative compliance such as complying with the security feature provisions of the TPD.
Tax stamps are specified and issued under the authority of the appropriate tax authority, defined in ISO 22382 as “a government (national, provincial, state or local) agency that has responsibility for the collection of applicable taxes and for the specification and design of tax stamps.”
Secure labels are normally specified and issued by the brand owner while tax stamps are state organization issued. The TPD is the exception to this in that it requires authentication labels to conform to an agreed national design and security specifications, with at least one security element on the label issued by an authorized and independent third party.
“Tax stamp and traceability programs help governments protect and recoup much-needed revenues as they battle to secure excise and get their public finances back on track,” said Yanez. “So the bottom line as far as the difference between a tax stamp and secure label is concerned in this battle is that the latter doesn’t provide proof of tax paid while the former does.”
Tax stamps can be an integral element of track-and-trace programs and best practice within the sector, effectively monitoring the location and movement of goods throughout the supply chain from manufacture to point-of-sale. A secure track-and-trace program works by assigning a unique individual identity to each item—a pack of cigarettes, for example—during the manufacturing process.
Once assigned, the identity is stored in a secure database and updated every time there is a significant event, such as a change of ownership or payment of tax due and supports authentication throughout the supply chain. This produces a comprehensive product history; it means that if the pack or bottle is found in a place or state that is irregular, its provenance can be fully traced back and the responsible party held accountable.
The digital traceability features of tax stamps, combined with their material security features and tamperproof functionality, are the most robust means to ensure tax compliance, audit optimization and product protection. Considering the highly detrimental and pervasive nature of the illicit trade of excisable products, great ills require great remedies.
April 21, 2021
Europe’s Beating Cancer Plan: A Missed Opportunity

Photo: Paulgrecaud | Dreamstime.com
The European Commission’s Beating Cancer Plan fails to recognize the potential of safer nicotine products.
By Stefanie Rossel
In February, the European Commission (EC) presented its Beating Cancer Plan (BCP), which named tobacco as the top avoidable risk factor. According to the EC, tobacco use is responsible for 15 percent to 20 percent of all European cancer cases, which corresponds to 525,000 to 700,000 new diagnoses each year. The BCP aims for less than 5 percent of the EU population to use tobacco by 2040, thus creating a “tobacco-free generation.”
To achieve this, the EC wants to tighten tobacco regulations, increase minimum taxation rates on tobacco products and harmonize the taxation of novel products. “As well as dealing with traditional tobacco products, addressing the next generation of tobacco and related products will remain a priority as new products, such as heated-tobacco and others, continue to enter the market,” the EC states on its website. The EC will also review legislation on cross-border tobacco purchases and address tobacco advertising, promotion and sponsorships. Member states will receive support in their implementation of the World Health Organization Framework Convention on Tobacco Control (FCTC).
Damian Sweeney
The plan was met with criticism by consumer organizations and trade associations. “The Beating Cancer Plan doesn’t just fail to make a distinction between the relative risks of combustible and noncombustible products, it also fails to recognize that low-risk alternatives like e-cigarettes and smokeless tobacco products are substitutes for the extremely hazardous combustible products,” says Damian Sweeney, a partner in the European Tobacco Harm Reduction Advocates (ETHRA).
“The plan proposes stricter rules on novel products, including a ban on nontobacco flavors, plain packaging, taxation and recommendations to member states to prohibit vaping in public spaces. Such severe restrictions on low-risk alternatives to smoking will serve to protect the cigarette trade and perpetuate smoking. It is an abject failure on the part of the EU to ignore the important role safer nicotine products can play in getting Europeans to quit smoking,” says Sweeney.
Dustin Dahlmann, president of the Independent European Vape Alliance (IEVA), a group that includes national associations, companies, manufacturers and wholesalers, says the EU strategy ignores harm reduction as an important instrument for public health. “Public Health England (PHE) estimates that vaping is at least 95 percent less harmful than smoking,” he says. “According to studies reviewed by PHE, vapers have a 99.5 percent lower risk of getting cancer than smokers. Many other studies show the great harm reduction potential of vaping. Ignoring these facts means ignoring the scientific evidence.”
According to Dahlmann, ignoring the scientific basis for harm reduction is tantamount to climate change denial. “The EU must understand that too,” he says. “It is about the effective reduction of the smoking rate in Europe. In Great Britain, the smoking rate has been massively reduced within a few years with the help of vaping. The U.K. ranks first on the tobacco control scale, which shows the success of their sensible tobacco control measures. The EU must take this policy as an example if it is serious about its plans to reduce cancer.”

Dustin Dahlmann
Difficult Road Ahead
Sweeney predicts a gloomy future for tobacco harm reduction (THR) in the EU if legislation sticks to the BCP. THR, he points out, is already facing challenges in the EU, with excessive regulations planned in Denmark, Germany, Latvia, the Netherlands and Spain. “These include flavor bans, plain packaging, increased taxation, online sales bans and bans on vaping in public spaces. If EU legislation follows the proposals in the plan, it will be disastrous for THR and for the health of millions of EU citizens. According to the most recent Eurobarometer Report, 57 percent of vapers have completely quit or reduced their smoking, and an overwhelming majority use nontobacco flavors,” he says.
“There is no doubt that the measures will affect millions of vapers, depriving them of the lifesaving products they use to remain smoke-free and forcing many back to smoking or to obtaining their products on the black market. Even worse is that current and future smokers will be deprived of the opportunity to improve their own health by switching to safer nicotine products. It is imperative that we consumers of safer nicotine products are listened to. We have an in-depth knowledge of the products and of the many difficulties people face when trying to quit smoking,” says Sweeney.
Back in its Box
Whether the EC’s “quit or die” approach will achieve the desired effect remains to be seen. By eliminating tobacco use, the BCP committee argues, nine out of every 10 lung cancer cases should be avoided. “However, if old and unsuccessful tobacco control strategies are retained, the plan cannot succeed,” Dahlmann predicts. “Public health policy decisions need to be evidence-based. Public Health England recently published the seventh report on e-cigarettes. The facts presented speak a clear language: E-cigarettes are effective means of quitting smoking and can help millions of people reduce the risks of tobacco use. ‘Quit or die’ is a cynical attitude and leaves the mass of smokers alone who cannot just quit.”
Sweeney, too, is pessimistic about the BCP. “The proposed measures are unscientific and ignore the experience of millions of citizens who have quit smoking using safer nicotine products,” he says. “Reducing smoking prevalence requires a new approach, which takes into account the technological advances which allow citizens to consume nicotine without being exposed to the cancerous compounds generated from combustion. Doubling down on outdated ‘quit-or-die’ policies and applying them to safer nicotine products is more likely to increase the ‘die’ part of that equation than the ‘quit’ part. Countries where safer nicotine products have been permitted to flourish, such as Sweden and the U.K., have been rewarded by steep drops in smoking prevalence. Countries which rely on traditional tobacco control measures are performing a lot less well. The EU should take a lesson from this.”
The Beating Cancer Plan’s stance on tobacco harm reduction is strikingly similar to the EU Scientific Committee on Health, Environmental and Emerging Risks’ (SCHEER) preliminary opinion on e-cigarettes, which was presented in September 2020. The draft report was heavily criticized by academics, scientific experts and consumer associations for failing to compare the risks of vaping with the risks of smoking (see “Proper Context,” Tobacco Reporter, February 2021). Although only a preliminary opinion at that point, the findings of the document, which Dahlmann calls “fundamentally flawed,” appear to have made their way into the wording of the BCP. “From comments made in the BCP press conference, it looks as though the SCHEER report will be used as the scientific basis for the plan’s proposals for safer nicotine products, which is a huge concern,” says Sweeney. “The BCP has also stated that the Tobacco Products Directive [TPD] and the Tobacco Taxation Directive will be used to apply the proposals. The commission has made their intentions for tobacco control clear in the plan: They intend to pursue traditional tobacco control measures and will use EU directives to try to put tobacco harm reduction back in its box. The commission fully intends to ignore the voices of millions of us consumers, who have improved our health by switching to safer nicotine products.”
Following an open public consultation that received ample response, the SCHEER committee was expected to adopt its final opinion during its plenary meeting in March. “We hope and expect that, given the depth of comments the committee has received, that it will decide that it is the time to reevaluate its findings,” Dahlmann states. “Decision-makers in the European Union have to make policy decisions in the best interests of Europeans. Ignoring THR would be a fatal mistake.”
Science Over Ideology
Much will depend on the EU’s attitude toward THR this year. By May 20, the commission will have to submit a report assessing the TPD. This review report will clarify which parts of the TPD the commission deems necessary to amend. The commission thus finds itself in the unusual situation that its approach may point the way for the FCTC’s ninth Conference of the Parties (COP9), which had to be postponed to this November due to the coronavirus crisis. “This report will be important to the position that the EU will take at the COP meeting,” Sweeney comments. “On the other hand, the hostility of the WHO and the FCTC secretariat toward safer nicotine products is very clear, so even if the report is favorable toward safer nicotine products, it is still going to be an uphill battle for THR at COP.”
Dahlmann calls on the WHO to recognize the harm reduction potential of e-cigarettes. “The evaluation of vaping must be based on scientific facts,” he says. “These clearly show the public health potential of harm reduction, and it is the responsibility of the WHO to make sure smokers know the facts. Many smokers do not know that e-cigarettes are much less harmful for them than smoking. By the end of 2021, a lot more people should be able to separate myths from facts when it comes to tobacco harm reduction.”
While the road ahead is bumpy, the battle for public health’s recognition of THR is not yet lost. “Despite everything that is going on and the constant bombardment of negative press and misinformation, I am quietly confident that common sense will win the day,” Sweeney says. “The fact that those opposed to THR don’t engage on the science but rely on ad hominem attacks and extremely suspect research tells me that they know they can’t win the battle based on facts. We are talking about saving people’s lives; this type of policy should be fact-based. It should not be a puritanical crusade against nicotine consumers and pro-THR scientists.
“Engaging with your elected MEPs is the best way to foster change; they were elected by the people, and their job is to represent the people. There are millions of us consumers of safer nicotine products in the EU, and we make up a substantial voting bloc. It’s more important than ever to make our voices heard and to let the politicians know that the unintended consequences of denying access to THR products will be dire.”
“The scientific evidence for the potential of the e-cigarette continues to grow,” says Dahlmann. “Two Cochrane reviews have concluded that vaping is a good means of stopping tobacco, likewise Public Health England. There are many researchers around the world who have delivered convincing results on the subject of tobacco harm reduction. We expect many more publications in the next few months to expand the knowledge base about vaping. Decision-makers who are serious about tobacco control should recognize what the science is telling them.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

April 21, 2021
Marposs Announces On-Line Diameter Control
Photo: Aeroel
Aeroel by Marposs, a provider of measurement, inspection and test technologies, has launched the Xploreline.XY gauging system for reliable, accurate and contactless diameter gauge control of cigarette or filter-making machines. The Xploreline.XY systems can be installed on-line with either single or double-rod machines and perform continuous diameter monitoring during rod manufacturing to achieve 100 percent inspection of potential dimensional nonconformity.
Each system includes a dual axis Xactum gauge intelligent laser sensor, which provides consistent, accurate measurement of the average rod diameter or rod circumference of fast-moving products. A special patented air-bracket device, specifically suited for on-line applications, is also included, ensuring the gauge self-cleans to protect against tobacco or paper dust.
Diameter measurement data are transmitted to the machine’s numerical control through the serial line, Ethernet or Profibus interface. Using the diameter information, the controller can automatically adjust the machine and keep the rod size within the preset tolerance limits, which improves machine efficiency. Alarm outputs are triggered for any out-of-tolerance part. Off-line applications are also available to check the product size after production.
These compact systems are available in different models and measuring sizes. The Xploreline.XY13 has a measuring field of 13 mm x 13 mm, measurable diameters from 0.1 mm to 10 mm, and a repeatability of ± 0.2 µm and linearity of +/- 0.5 micron. The Xploreline.XY35 has a measuring field of 35 mm x 35 mm, measurable diameters from 0.2 mm to 32 mm, repeatability of ± 0.15 µm and linearity of +/- 1 micron.
Each XLS gauge is programmed with dedicated software along with a display unit and remote control. Overall benefits include:
Continuous diameter control
No scrap: real-time inspection allows the system to detect out-of-tolerance trends and return the product back within specification, avoiding any risk of rejects or complaints
Material savings: keeping the product close to the lowest tolerance limit, considerable savings in materials can be achieved, allowing the cost of the system to be paid back in just a few months
Process automation: use machines with automatic change of collection reels or systems to coil spools up to a preset weight
Quality Certification: 100 percent inspection makes random sample checks redundant and allows printing of detailed reports to prove product quality
April 21, 2021
Stora To Close Mills in Sweden and Finland

Stora Enso’s Kvarnsveden Mill in Sweden (Photo: Stora Enso)
Stora Enso will start negotiations with employees at its Kvarnsveden Mill in Sweden and Veitsiluoto Mill in Finland regarding a plan to permanently close pulp and paper production at both mills. The planned closures would take place during the third quarter of 2021 and directly affect 670 people in Finland and 440 people in Sweden.
Paper demand in Europe has declined for more than a decade. This trend has further accelerated due to the pandemic, which has led to changes in consumer behavior. As a consequence, there is a significant overcapacity in the European paper market, which has resulted in historically low price levels and challenged the cost competitiveness of many paper mills. Both Kvarnsveden and Veitsiluoto mills are loss-making, and Stora Enso expects their profitability to remain unsatisfactory.

This is heavy news for our company and our colleagues at Veitsiluoto and Kvarnsveden mills.
Annica Bresky, president and CEO, Stora Enso
“This is heavy news for our company and our colleagues at Veitsiluoto and Kvarnsveden mills,” said Annica Bresky, Stora Enso’s president and CEO, in a statement.
“Our people at the sites are very competent and have done their utmost during very difficult circumstances. Unfortunately, in the rapidly declining paper market, we need to adjust our production capacity to improve the competitiveness of our total paper business. This sadly means the closure of unprofitable assets.”
“We have examined several options to improve the financial situation for Veitsiluoto and Kvarnsveden mills,” said Kati ter Horst, executive vice president of Stora Enso’s paper division. “However, none of these options have proved feasible in ensuring a cost competitive future for the mills. If there was a decision to close down the mills, we would work closely together with other Stora Enso locations, the cities of Kemi and Borlange, and other stakeholders to support in re-employment and training of the affected employees. We would also actively engage in discussions to find alternative future uses for the mill sites. Throughout this process, we will serve our customers in the best possible way.”
The planned mill closures would reduce Stora Enso’s paper production capacity by 35 percent to 2.6 million tons per year.
April 21, 2021
Report Explores China’s Tobacco-Heating Market

Photo: David Mark from Pixabay
Research and Markets has published a new report on the world’s largest potential market for heat-not-burn (HnB) products—China.
The report provides an overview of China National Tobacco Corp. (CNTC) subsidiaries’ HnB marketing activities from 2017 to 2020.
The report reviews all HnB products that were officially released in domestic and foreign markets as well as cooperation ties in the Chinese HnB market.
China Tobacco has a market of 300 million smokers with a significant part being active HnB users. The domestic HnB sector is dominated by CNTC. It has launched HnB products in Sichuan, Yunnan, Guangdong, Anhui, Hubei, Heilongjiang and other provinces and has been actively engaged in overseas markets. CNTC HnB brands are presented in many foreign markets, mostly in Asian countries and eastern Europe.
Most HnB devices are promoted with dedicated consumables. HnB devices are either produced at facilities of CNTC subsidiaries or are OEM versions developed by third-party manufacturers. The CNTC subsidiaries with the largest number of HnB devices in the domestic market are based in Sichuan, Yunnan and Guangdong.
The report includes a brief review of HnB electronic devices produced in cooperation with major Chinese hardware manufacturers. There is also a brief description of companies engaged in the Chinese HnB market, and a complete list of HnB products with release dates and corresponding references in domestic and foreign markets, a map of presence of CNTC HnB brands in foreign markets and a timeline of CNTC HnB products by release date.
April 21, 2021
Turning Point Brands invests in Docklight
Turning Point Brands (TPB) has announced an $8.7 million strategic investment in Docklight Brands, a pioneering consumer products company with brands including Marley Natural cannabis and Marley CBD. In addition, TPB has obtained exclusive U.S. distribution rights for Docklight’s Marley CBD topical products. The investment into Docklight Brands’ Series A offering comes with certain follow-on investment rights.
As a result of this transaction, Turning Point Brands now has access to two iconic names in cannabis: Bob Marley and Zig-Zag. The Marley CBD skincare line, which includes after-sun, hand cream, lip balm, balm and roll-on products, combines tropical botanicals with hemp-derived CBD and is currently available nationwide in the U.S. in over 12,000 stores, including select 7-Eleven, Circle K, Safeway and Dollar General locations, with additional availability expected through TPB’s partner network.
The company’s investment into Docklight will also support the growth of the broader Marley CBD line, including Marley Mellow Mood teas, Marley wellness shots and Marley chocolate squares as well as Marley Natural THC products, which are produced and sold under license agreements in Canada, Jamaica and select U.S. states.
“Our goal is to build an expansive portfolio of the most innovative brands in the cannabis industry and to distribute these products across our vast partner network,” said Larry Wexler, CEO of Turning Point Brands, in a statement.
We are confident our strategic relationship with Turning Point Brands will greatly enhance both the visibility and availability of the Marley products across TPB’s extensive distribution network.
Damian Marano, CEO, Docklight Brands
“We reach consumers where they are most comfortable, selling products to distributors, selling to stores directly and interfacing with consumers one-on-one via e-commerce. Adding Marley products to our portfolio alongside our legacy Zig-Zag brand marks yet another milestone as we continue to leverage our brands and expand our distribution infrastructure.”
“Given our shared focus on branded products, we are excited to expand the reach of the iconic Bob Marley brand. We are confident our strategic relationship with Turning Point Brands will greatly enhance both the visibility and availability of the Marley products across TPB’s extensive distribution network,” said Damian Marano, CEO of Docklight Brands.
April 21, 2021
U.S. House Passes Cannabis Banking Bill

Photo: Feelgoodsk | Dreamstime.com
The U.S. House of Representatives on April 19 passed legislation that would allow banks to serve cannabis companies in states where it is legal, reports Reuters.
The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how they would supervise such banking activity.
Banks have generally been unwilling to do business with companies that sell marijuana or related products, fearing they could run afoul of federal laws.
That has left companies in the marijuana industry with few options, including relying on just a handful of small financial institutions or doing business in cash.
Thirty-six states have legalized medical cannabis while 17 states now allow adult use, according to the National Conference of State Legislatures.
Lawmakers voted 321-101 to approve the bill and send it to the Senate.
April 21, 2021
Malawi President Urges Diversification

The tobacco sales floors in Lilongwe (Photo: Taco Tuinstra)
Malawi’s President Lazarus Chakwera wants tobacco farmers to switch to other cash crops because he sees no future in the golden leaf, reports The Voice of America.
At the opening of tobacco selling season on Tuesday, Chakwera said Malawi should switch to other cash crops like cannabis, which was legalized last year for industrial and medicinal use. In preparation for cannabis cultivation, the country recently created a Cannabis Regulatory Authority.
Tobacco currently contributes more than 60 percent of the country’s export earnings, but demand for the leaf has been declining due to growing health awareness and global anti-smoking campaigns.
“We need an exit strategy to transition our farmers to crops that are more sustainable and more profitable,” Chakwera said.
“I am therefore calling on the Ministry of Agriculture to begin consultations with all stakeholders to come up with a timeframe within which Malawi’s economy will be completely weaned from tobacco.”
We need an exit strategy to transition our farmers to crops that are more sustainable and more profitable.
Lazarus Chakwera, president, Malawi
In the meantime, Malawi should promote greater competition in the tobacco industry by attracting more leaf buyers beyond the current nine, Chakwera said, suggesting that competition would increase prices.
In March, Malawi’s government signed an agreement with tobacco leaf buyers and set a minimum price of about $2.30 per kg. In the past, buyers would offer as little as $0.50 per kg of tobacco.
Skeptics said it could be difficult for tobacco farmers to switch to cannabis, citing skills and climate conditions, among other considerations.
Tobacco Reporter detailed the challenges facing Malawi’s tobacco sector in its July 2017 print edition (See “On the Map.”)
April 21, 2021
Shares Slide on Nicotine Reduction Discussions

Photo: Tumisu from Pixabay
Shares in big tobacco companies plunged on Tuesday following reports that the U.S. government may allow only cigarettes with nonaddictive levels of nicotine and may also ban menthol, reports Bloomberg.
Altria Group fell 6.9 percent Tuesday, losing more than $11 billion in market value since Friday. British American Tobacco (BAT) dropped 8.3 percent in London Tuesday. Analysts estimate BAT derives up to a third of its earnings from menthol brands such as Newport.
In Asia, Japan Tobacco’s stock was near 2 percent lower. Philip Morris International shares, however, ended the day up over 2 percent and the company reported strong results on Tuesday; the company does not sell cigarettes in the U.S.
On Monday, The Wall Street Journal reported that President Joe Biden’s administration is considering new regulations requiring tobacco companies to reduce the nicotine levels in cigarettes sold in the U.S. to the point at which the products are no longer addictive.
Meanwhile, the administration faces a deadline over whether to ban menthol flavoring in traditional and electronic cigarettes.
While the established tobacco sellers took a stock market hit following the news, shares in 22nd Century Group jumped, according to The Motley Fool. The company genetically modifies tobacco plants to contain less nicotine, enabling it to offer low-nicotine cigarettes, alongside growing reduced-cannabinoid cannabis.
22nd Century has staked its existence on persuading the FDA to approve the company marketing and selling very low-nicotine traditional cigarettes. In a press note, 22nd Century said it was prepared to license its reduced nicotine content tobacco technology to every cigarette manufacturer.
April 21, 2021
22nd Century Excited About Nicotine Cuts

Photo: Tobacco Reporter archive
22nd Century Group said that it is fully prepared to partner with the U.S. Food and Drug Administration (FDA) to launch its VLN reduced nicotine content cigarette brand and license its reduced nicotine content tobacco technology to every cigarette manufacturer.
Recent media reports suggest that the Biden administration is actively considering moving forward the Advance Notice of Proposed Rulemaking (ANPRM) that will require tobacco manufacturers to reduce the amount of nicotine in all combustible cigarettes sold in the United States to be “minimally or nonaddictive.”
“A nicotine cap by the FDA has been in the works since the Obama administration,” said James A. Mish, CEO of 22nd Century Group, in a statement. “During that time, 22nd Century has consistently proven beyond any doubt with our VLN cigarettes that a cigarette that contains nicotine levels that the FDA has identified as ‘minimally or nonaddictive’ is technically feasible. Moreover, given the millions of Americans who smoke and will suffer and die from cigarette addiction, this mandate is necessary and appropriate.”
“As the only company with the ability to offer a combustible tobacco product that can meet the FDA’s mandate today, we look forward to helping with this critical public health initiative.
“Numerous independent research studies—largely funded by U.S. government agencies—have consistently confirmed the benefits of implementing a mandate on reduced nicotine content cigarettes for adult smokers.
“Once this rule is in place, we are fully prepared to provide the solution by making our VLN cigarettes available to adult smokers, and we remain willing to license our technology to every cigarette manufacturer in the industry to give them the opportunity to join us in our efforts to reduce the harm caused by smoking and to protect future generations from ever becoming addicted to cigarettes.”
We are fully prepared to provide the solution by making our VLN cigarettes available to adult smokers, and we remain willing to license our technology to every cigarette manufacturer.
James A. Mish, CEO, 22nd Century Group
The ANPRM that President Biden’s administration is considering moving forward was issued in March of 2018, and the comment period closed in June of 2018. The FDA will likely issue a notice of proposed rulemaking as the next step in the rulemaking process before a final rule is published.
Made from proprietary tobacco engineered to contain 95 percent less nicotine than conventional cigarette tobacco, 22nd Century’s RNC cigarettes are the only combustible tobacco products able to meet the nicotine levels proposed in the FDA’s ANPRM for a tobacco product standard to reduce the nicotine content of all combustible cigarettes, according to 22nd Century.
The company believes that it is in the final stages of the FDA’s application process to obtain a modified-risk tobacco product designation for its reduced nicotine content cigarettes, VLN King and VLN Menthol King. The designation will allow 22nd Century to communicate key features of the products, including the claim “95 percent less nicotine.”
April 20, 2021