Category: Featured

Swedish Match Releases Annual Report

Photo: Swedish Match
Swedish Match has released its annual report for 2020.
Highlights included record sales and operating profit, driven by strong traction for ZYN nicotine pouches in the U.S., and double-digit operating profit growth in local currencies for the smokefree and cigar product segments.
In local currencies, sales increased by 17 percent. Reported sales increased by 13 percent to SEK16.7 billion ($1.96 billion), despite significant strengthening of the Swedish krona during the year versus the U.S. dollar, the Norwegian krona and the Brazilian real.
In local currencies, operating profit from product segments increased by 28 percent. Reported operating profit from product segments increased by 23 percent to SEK7.16 billion.
Operating profit amounted to SEK6.99 billion and profit after tax was SEK4.89 billion.

We enter 2021 as a stronger, yet different, company.
Lars Dahlgren, president and CEO, Swedish Match
“On a local currency basis, all product segments delivered top-line and operating profit growth for the year,” said Lars Dahlgren, president and CEO of Swedish Match. “The U.S. smokefree business contributed with significant year-on-year sales and profit growth throughout the whole year. For cigars in the U.S. and for the first half, the year-on-year financial development was negatively impacted by Covid-19, but over the course of the second half of 2020, we saw an impressive recovery with accelerated volumes, sales and operating profit growth.”
Dahlgren expressed optimism about 2021. “We enter 2021 as a stronger, yet different, company,” he said. “The success that we experienced in 2020 would not have been possible without the tireless dedication and ingenuity of our employees, the long-forged relationships that we have with our vendors and the continued passion and trust that our customers and consumers place in Swedish Match and its brands.”
March 17, 2021
INNCO Calls for Sensible Policies
Photo: Tobacco Reporter archive
Blanket bans on electronic nicotine-delivery systems (ENDS) are a detriment to low-income and middle-income countries (LMICs), according to the International Network of Nicotine Consumer Organizations (INNCO). In a position paper released today, the group says bans on vapor and heated-tobacco products (HTPs) are an overly simple solution that make the problems that come with combustible cigarette use far worse.
“The hundreds of millions of people who smoke in these countries should have the ability to make decisions about safer nicotine products, particularly when their own health is on the line,” said Samrat Chowdhery, president of INNCO’s governing board. “Overly simplistic policy solutions, such as proposed bans on all ENDS and THR products by the Bloomberg Philanthropies-funded The Union, are being offered as a blunt and impractical tool for a situation that requires pragmatism and nuance, making meaningful and sustainable change more difficult.”

Overly simplistic policy solutions, such as proposed bans on all ENDS and THR products, are being offered for a situation that requires pragmatism and nuance.
Samrat Chowdhery, president, INNCO
The report, “10 Reasons Why Blanket Bans of E-Cigarettes and HTPs in low- and middle-income Countries (LMICs) Are Not Fit for Purpose,” sends a strong warning to organizations and governments that limiting options to reduce harm will only increase the number of people smoking tobacco, inevitably leading to illicit markets and increases in crime. The paper lists the Top 10 reasons the bans don’t work as the following:
Bans are an overly simplistic solution to a complex issue and will not work.
Prioritizing the banning of reduced harm alternatives over cigarettes is illogical.
Reduction and substitution are valid goals for smokers in LMICs.
People who smoke have the right to choose to reduce their own risk of harm.
Reduced harm alternatives can significantly contribute to the aims of global tobacco control.
Lack of research in LMICs is not a valid reason to ban reduced harm alternatives.
The prohibitionist approach in LMICs is outdated, unrealistic and condescending.
Bans will lead to illicit markets with increases in crime and no tax revenue.
Banning reduced harm alternatives leads people back to smoking and greater harm.
Blanket bans in LMICs are a form of “philanthropic colonialism.”
INNCO estimates that there are scores of LMICs in jeopardy of increasing the number of people who smoke cigarettes in their countries unless pragmatic approaches to tobacco harm control are adopted, including the availability of a wide selection of safer nicotine products. Leveraging the paper’s findings, INNCO states that it will work with its global membership to inform policymakers in developing nations to help achieve risk-relative regulations and access to safer THR products, according to a press release.
“Africa is home to some of the highest-ranked smoker countries on the planet,” said Joseph Magero, chairman of Campaign for Safer Alternatives, a pan-African nongovernmental member organization dedicated to achieving 100 percent smoke-free environments in Africa. “While improving overall public health has made great strides in these regions, efforts to directly address smoking cessation and harm reduction strategies have lagged due to limited or no access to safer, noncombustion nicotine products. By denying smokers access to much safer alternatives while leaving cigarettes on the market, policymakers would leave only two options on the table—quit or die.”

By denying smokers access to much safer alternatives while leaving cigarettes on the market, policymakers would leave only two options on the table—quit or die.
Joseph Magero, chairman of Campaign for Safer Alternatives
The paper is supported by other harm reduction advocates as well. Nancy Loucas of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates, a grassroots alliance of THR advocacy organizations, said a blanket ban in LMICs is a form of philanthropic colonialism, suggesting that these countries and their citizens cannot be trusted with any level of self-determination. “Inhabitants are treated as second-class citizens, which is offensive,” she said. “There is no benefit in limiting choice of safer nicotine products but only the potential for increasing harm.”
Francisco Ordonez of the Asociacion por la Reduccion de danos del Tabaquismo Iberoamerica, a network of consumer organizations in Latin America, says that very few low-income and middle-income countries have adopted even the most basic prevention measures suggested by the World Health Organization (WHO).
“Policymakers should embrace harm reduction as a valid goal, particularly in LMICs where access to cessation programs is extremely limited,” said Ordonez. “Replacing combustible tobacco with alternative nicotine products can significantly reduce the risk of harm by at least 95 percent. It works in industrialized nations and can do the same in LMICs.”
March 16, 2021
Vapor Voice Publishes PMTA Tracking Tool
Thousands of vapor companies submitted premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration (FDA) by the Sept. 9, 2020, deadline to keep their products on the U.S. market. But which products exactly are under review and how all those submissions have fared in the process is less clear. A comprehensive list promised by the FDA has yet to materialize.
In the absence of an official database, Tobacco Reporter’s sister publication, Vapor Voice, decided to create its own tracker. As a news outlet, Vapor Voice already receives many press releases relating to PMTA submissions. In addition, its editors continuously monitor corporate websites, social media platforms and other industry sources. Individually, the pieces of information gathered during those endeavors make for interesting news announcements; taken together, they provide a coherent dataset to track PMTAs.
Of course, this approach has its limits. The data is self-reported, and at present, Vapor Voice cannot fully verify the veracity of all claims made in the announcements used to compile the list. The quality of the information that reaches the magazine also varies greatly, from exact counts in all list categories to more general statements on a brand or brand family without further elaboration. As per Vapor Voice’s protocol, these issues are noted in the list.
While the dataset should not be taken as a representative sample, it paints as coherent a picture as possible. Vapor Voice recommends using this tool to gain a directional understanding and as a starting point in a comprehensive due diligence search regarding products.
Check out the Vapor Voice PMTA tracker here.
March 16, 2021
Mail Ban Forces Vape Shops Out of Business

Photo: Ian Allenden | Dreamstime.com
The Preventing Online Sales of E-Cigarettes to Children (PACT) Act has forced many companies to discontinue U.S. online sales and even cease operations altogether. Among the most recent vape shops to announce the end of their business are Elevated Vaping in Houston, Texas, and the Vape Spot in Los Angeles, California.
Earlier, Securience, parent to DuraSmoke, announced a merger with VapinDirect to stay in business. Logic will end all online sales on March 16. White Cloud Electronic Cigarettes said it would end all online U.S. sales on March 26. Vapewild and Vistavape, too, announced that they would be closing shop.
Even companies overseas reported supply chain disruptions as a result of the U.S. mail ban.
“If the increase in shipping costs wasn’t enough, the bill also imposes huge paperwork burdens on small retailers and backs it up with threats of imprisonment for even innocent mistakes,” said Gregory Conley, president of the American Vaping Association. “This is not a law designed to regulate the mail-order sale of vaping products to adults; it’s an attempt to eliminate it.”

The bill also imposes huge paperwork burdens on small retailers and backs it up with threats of imprisonment for even innocent mistakes.
Gregory Conley, president, American Vaping Association
Effective March 28, 2021, recipients of all vaping products purchased online will be required by law to present ID and sign for their delivery. The U.S. Postal Service ban on mailing vaping products will go into effect on April 27, 2021. After this date, customers will no longer be able to receive vaping products by way of USPS delivery.
Many private shipping companies—which often rely on the USPS for so-called last-mile deliveries—will no longer deliver vapor products. “Effective April 5, 2021, UPS will not transport vaping products to, from or within the United States due to the increased complexity to ship those products,” said UPS spokesperson Matthew O’Connor.
FedEx stopped accepting vapor products for delivery on March 1, 2021. DHL had already previously banned all shipments of nicotine-containing products and has now also ended all cannabis vapor product shipments.
Writing in the National Review, Michelle Minton, a senior fellow specializing in consumer policy for the Competitive Enterprise Institute, recently cautioned that the USPS mail ban would boost sales of traditional cigarettes.
March 15, 2021
UKVIA Proposes Regulatory Changes
The U.K. Vaping Industry Association (UKVIA) has unveiled a landmark package of recommendations to government aimed at maximizing the public health benefits of vaping and bolstering ambitions for a “Smokefree 2030.” The document, A Blueprint for Better Regulation, urges government to use its post-Brexit independence to become a world leader in harm reduction.
The U.K.’s Tobacco and Related Products Regulations (TRPR) are currently being reviewed, with a crucial consultation due to close on March 19. The resulting decisions made by government are set to shape public health and smoking cessation policy for years to come.
Former Health Minister Norman Lamb, also a former chair of Parliament’s science and technology committee, praised the recommendations.

The TRPR review offers a great opportunity to improve public health across the U.K. by tackling misinformation about vaping.
Former Health Minister Norman Lamb
“I welcome the launch of the UKVIA’s blueprint document responding to the government’s consultation—the TRPR review offers a great opportunity to improve public health across the U.K. by tackling misinformation about vaping.
“It also presents an opportunity for the industry to build on the evidence-based approach, which the government has consistently taken on vaping products, and to support smokers who want to switch to a less harmful product.”
“The current public consultation on TRPR and SPoT is an ideal opportunity to highlight how less harmful products have improved public health,” said former Labour MP Kevin Barron, who is also a former chair of Parliament’s health and social care select committee.
“The current lowest recorded smoking rates have been achieved by numerous avenues, including switching from tobacco to less harmful products. The opportunity to bring in legislation to further encourage the move to products that can satisfy an addiction using products 95 percent less harmful than burning tobacco should not be missed.”
The opportunity to bring in legislation to further encourage the move to products that can satisfy an addiction using products 95 percent less harmful than burning tobacco should not be missed.
Former Labour MP Kevin Barron
Developed by the sector’s leading businesses, the recommendations aim to help adult smokers quit while increasing vaping’s economic contribution and even addressing environmental concerns. The UKVIA blueprint, among other things, calls for:
The use of government-approved, expert health claims on products to encourage smokers to switch
Greater opportunities to engage with smokers, as current restrictions also deter those who may otherwise make the switch
The extension of certain regulations to cover additional vaping products, such as non-nicotine e-liquids, thereby supporting a highly responsible industry
Product size changes that reduce prevalence of single-use plastic
John Dunne
“The recommendations published today are the result of intense collaboration among vaping’s leading experts and entrepreneurs,” said John Dunne, director general of the UKVIA. “This is truly a landmark moment in the history of our industry, which has grown to be a genuine market disrupter and a route out of smoking for people all over the world. With the adoption of these recommendations, the U.K. could take its place as a progressive, global leader on public health.
“The government has claimed that post-Brexit regulatory independence will mean a new, and better, way of doing things. Now is the time for this pledge to become a reality. By embracing this evidence-based approach, we can empower consumers, revitalize businesses and put the ‘Smokefree 2030’ ambition within our grasp.”
March 15, 2021
Thailand Tobacco Authority Eyes Cannabis

Photo: cytis | Pixabay
The Tobacco Authority of Thailand (TOAT) is hoping that sales of cannabis and hemp extracts will help compensate for deteriorating income from tobacco production, reports the Bangkok Post.
The TOAT is drafting a ministerial regulation to give the organization the authority to grow and produce extracts from cannabis and hemp, which can be used in medicine and cosmetics, said TOAT governor Panuphol Rattanakanjanapatra.
Although the Tobacco Act stipulates TOAT can produce tobacco leaves and other plants, clarity is needed on TOAT conducting R&D on cannabis and hemp for commercial purposes.
The business value of cannabis and hemp could reach tens of billions of baht, according to Panuphol.
At present, a two-tier system is applied for excise duties levied on cigarettes. A 20 percent tax rate is applied to the retail price for packs costing up to THB60 ($1.95).
If the retail price exceeds THB60 per pack, a 40 percent tax rate is applied.
A flat tax rate of 40 percent was scheduled to be applied in October 2019, regardless of the retail price, but there has been opposition from the authority and tobacco farmers.
March 15, 2021
Zimbabwean Selling Season to Start in April

Photo: Taco Tuinstra
Zimbabwe’s tobacco marketing season kicks off April 7, reports Daily News, citing the Tobacco Industry Marketing Board (TIMB). The auction floors will officially open on that day, but contract tobacco sales will begin April 8.
Normally, the tobacco marketing season opens in February, but the coronavirus crisis could have affected the dates for this year.
Three auction floors, Boka Tobacco Floors, Premier Tobacco Auction Floors and Tobacco Sales Floor, have been licensed for 2021. The three firms would all operate from Harare only, and there will be no decentralization of auction sales. As was the case last year, some of the contracting companies would operate out-of-Harare sales points.
Tobacco growers are anticipating a bumper harvest after good rains and adequate supplies of inputs. The potential national tobacco output is currently being assessed by Agritex and TIMB with the results set to be released by the parent Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement.
According to the TIMB, 180.8 million kg valued at $452.3 million were delivered to the country’s contract and auction floors last year. Last year’s average price was $2.50 per kg.
Zimbabwe exports its tobacco mostly to China and the European Union.
Following a policy change by the Reserve Bank of Zimbabwe, tobacco farmers are set to receive 60 percent of payment in foreign currency and the remainder in local currency. Last year, farmers were paid 50 percent of their proceeds in U.S. dollars with the other 50 percent being in Zimbabwe dollars.
The tobacco Farmers Union of Zimbabwe has warned that the retention levels still fall short of growers’ production cost.
March 15, 2021
More Liquid Makers Receive Warnings

Photo: Eugene Onischenko | Dreamstime.com
On March 12, the U.S. FDA sent warning letters to 13 firms that manufacture and sell unauthorized e-liquids. The regulatory agency advised the companies that selling products lacking a premarket authorization is illegal, and therefore, the products cannot be sold or distributed in the U.S.
According to the FDA, the firms did not submit a premarket tobacco product application (PMTA) by the Sept. 9, 2020, deadline. The recipients of the warning letters are VapinUSA, Vapor Springs, Vapor Cigs, Vegas Vapor Emporium, Vape 911, The Philosopher’s Stone, The Clean Vape, Tooters Vape Shop, Cloudchasor, Boardwalk Elixir, Dieselbycg-Hometown Vape Lounge, Blue Lab Vapors and Revolution Vapor.
“While each warning letter issued today cites specific products as examples, collectively these companies have listed a combined total of more than 75,000 products with the FDA,” the agency wrote in its statement.
Following an initial set of such warning letters announced earlier this year, the FDA has continued to issue additional warning letters for products that failed to submit a PMTA.
Per a court order, applications for premarket review for certain deemed new tobacco products on the market as of Aug. 8, 2016—including e-liquids—were required to be submitted to the FDA by Sept. 9, 2020. For companies that submitted applications by that deadline, the FDA generally intends to continue to defer enforcement for up to one year pending FDA review, unless there is a negative action taken by the FDA on the application.
March 15, 2021
Growers Welcome Increased Forex Cap

Photo: Taco Tuinstra
The Tobacco Farmers Union of Zimbabwe (TOFUZ) has praised the government for increasing the nation’s foreign currency retention cap from 50 percent to 60 percent ahead of the 2021 tobacco selling season, reports All Africa.
Growers are now able to purchase and/or supplement their foreign exchange requirements from the auction system. The union had called for a 70 percent retention cap but noted that 60 percent was still a positive level for tobacco leaf growers.
“Though we would have wanted 70 percent forex retention for farmers, we applaud the RBZ [Reserve Bank of Zimbabwe] and the Ministry of Agriculture for the policy review, which is set to benefit farmers,” a TOFUZ spokesperson said.
This will certainly see an increase in tobacco production.
TOFUZ
“This will certainly see an increase in tobacco production as farmers will increase hectare capacity. Our concern as a union is to see totally empowered tobacco farmers who can independently make decisions without conditions as the case with contract farming. Given that tobacco is the country’s largest single foreign currency earner after gold and it contributes much to our economic growth as a nation, tobacco farming should be promoted through supportive input loan facilities.”
March 12, 2021
Dutch Smoking Prevalence Down

Photo: Tobacco Reporter archive
Adult smoking prevalence rate for occasional smokers in the Netherlands was 20 percent in 2020, down from 22 percent in 2019, Statistics Netherlands revealed.
For daily smokers, the prevalence rate remained at 15 percent for 2020 and 2019. The survey also noted that 46 percent of adults said that they never smoked and that 34 percent said that they formerly smoked, figures that were also the same for 2020 and 2019.
The percentage of nonsmokers aged 18 and over who said that they have never been or were barely exposed to environmental tobacco smoke rose from 75 percent in 2019 to 79 percent in 2020.
The Dutch government aims to reduce smoking among adults to 5 percent by 2040, according to Statistics Netherlands.

March 12, 2021