Category: Featured

  • BAT Expects Lower First-Half Profit

    BAT Expects Lower First-Half Profit

    Photo: BAT

    Declining sales of cigarettes and growing competition from illegal vapes in the U.S. will likely dent British American Tobacco’s 2024 earnings, the tobacco manufacturer said in a pre-close trading update on June 4.

    Analysts estimate BAT will make £27.60 billion ($35.35 billion) in total organic revenue and adjusted operating profit of £12.48 billion for the year, according to The Wall Street Journal.

    BAT noted that while the U.S. was showing some early signs of recovery, traditional cigarette volumes were down around 9 percent so far this year across the industry.

    Chris Beckett, head of equity research at Quilter Cheviot, told Reuters BAT’s anticipated decline in first-half revenue and profit was “more pronounced” than expected.

    The company expects half-year revenue and adjusted profit from operations to fall by low single digits, but says it is on track to deliver its guidance for the full year.

    “We expect our performance to be second-half weighted, mainly driven by wholesaler inventory movements related to continued investment in our U.S. commercial actions, as well as the phasing of new launches,” said BAT CEO Tadeu Marroco.

    “Our guidance also reflects ongoing macro-economic pressures, particularly in the U.S. market and continued lack of effective enforcement against the growing illicit vapor segment. As a result, we expect our H1 revenue and adjusted profit from operations to be down by low-single digits on an organic, constant currency basis.”

  • Cote D’Ivoire to Require Plain Packaging

    Cote D’Ivoire to Require Plain Packaging

    Photo: alexlmx

    Cote D’Ivoire will start requiring cigarette manufacturers to sell their products in plain packaging in November.

    According to the Campaign for Tobacco-Free Kids (CTFK), Cote D’Ivoire is the second nation in Africa to introduce following Mauritius.

    “The Campaign for Tobacco-Free Kids applauds Cote D’Ivoire for joining Mauritius in bringing plain packaging to Africa,” said CTFK President and CEO Yolanda Richardson. “These new measures should serve as a reminder that countries around the world can and must take swift action to curb tobacco use, protect public health and stop Big Tobacco companies from targeting youth.”

  • Investor Plans Nicotine Extraction in Zimbabwe

    Investor Plans Nicotine Extraction in Zimbabwe

    Photo: Tobacco Reporter archive

    A Chinese investor plans to build a multi-billion dollar nicotine-extraction factory in Zimbabwe, reports The Herald. The plans are at an advanced stage, according to the country’s former ambassador to China, Christopher Mutsvangwa.

    The facility will extract nicotine from tobacco stalks, leaves and flowers for the cigarette alternatives, such as e-cigarettes. Once established the factory is expected to also process tobacco from neighboring countries including Malawi, Mozambique and Zambia.

    “There is going to be a very big industry to extract nicotine from the by-products after selecting the premium tobacco leaves,” Mutsvangwa told participants in meeting of the ruling  Zanu PF’s party’s Mashonaland West provincial coordinating committee in Chinhoyi.

    “The Chinese firms have an interest in setting up the factories here in Zimbabwe because of our production levels,” he said.

    The investor’s board of directors reportedly met on May 31, 2024, to finalize the modalities of setting up the factory, which will likely be built in Karoi, in one of Zimbabwe’s largest tobacco producing districts.

    Zimbabwe is also expected to be a major producer of cannabis seeds following plans to establish a US$400 million factory. “We now have capacity to produce cannabis seed in the country. After an initial investment of $30 million, the company now wants to set up a seed production factory,” said Mutsvangwa.

    The investments in nicotine extraction and cannabis production will boost Zimbabwe’s attempts to extract more value from its tobacco industry, as detailed in the government’s Tobacco Value Chain Transformation Plan.  

  • FDA Updates Vaping Products ‘Red List’

    FDA Updates Vaping Products ‘Red List’

    Photo: xy

    The U.S. Food and Drug Administration has updated its import alert, which includes a “red list” of vapor products that may be detained “without physical examination,” the agency announced.

    The alert authorizes U.S. Customs and Border Protection to detain new tobacco products that do not have the required marketing authorization under the Federal Food, Drug and Cosmetic Act, which gives the FDA the authority to regulate all tobacco products.

    The list of products now includes Chinese manufacturers and distributors as well as U.S. importers and distributors.

    The FDA announced last week that it is taking stronger enforcement actions against unauthorized e-cigarettes. The agency is seeking civil money penalties (CMP) against nine brick-and-mortar retailers and one online retailer for selling unauthorized Elf Bar brand vaping products. The FDA is seeking a penalty of more than $20,000 from each retailer.

    “In order to remove a firm’s product from the red list, information should be provided to the agency to adequately demonstrate that the firm has resolved the conditions that gave rise to the appearance of the violation,” the FDA wrote. “The purpose of this is so that the agency will have confidence that future shipments/entries will be in compliance with the Federal Food, Drug and Cosmetic Act.”

  • Smoking Decline Traced to Noncombustibles

    Smoking Decline Traced to Noncombustibles

    Photo: Natalia

    Sweden’s smoking rate is poised to dip below 5 percent, a share that is widely considered the hallmark of a “smoke-free” society, reports The Business Mirror.

    Only 5.6 percent of Swedish adults smoked cigarettes in 2022, down from 49 percent of men in 1960, according Sweden’s public health agency. As a result, Sweden has 52 percent fewer tobacco-related male deaths than Poland and 57 percent fewer than Romania. For male lung cancer, Sweden has significantly fewer deaths than France, Germany, Italy and Poland.

    A report titled “No Smoke Less Harm” by the advocacy group Smoke Free Sweden attributes this achievement to Sweden’s openness to alternative nicotine products, such as snus.

    The report points out that smoking-related diseases are caused primarily by the byproducts of tobacco combustion rather than nicotine, as many mistakenly assume.

    The Swedish experience demonstrates the importance of understanding public misperceptions about nicotine to develop health policies that better protect and inform consumers.

    While nearly one in four Swedish adults still use nicotine daily, in line with European averages, Sweden boasts far lower rates of tobacco-related deaths (44 percent), cancer rates (41 percent) and cancer deaths (38 percent) than the rest of the European Union.

    Smoke Free Sweden’s report appeals for the World Health Organization and global public health communities to acknowledge that combustible products, not nicotine, cause harm to smokers.

    “While nicotine is addictive, it does not cause the serious diseases associated with smoking,” Fagerström said. “Our findings support a shift in focus from cessation to substitution with less harmful alternatives for those unable to quit completely.”

  • Malaysia to Enact Age Restrictions this Year

    Malaysia to Enact Age Restrictions this Year

    Photo: Heorshe

    Malaysia will restrict the sale and purchase of tobacco products and tobacco substitutes to those aged 18 and over this year, reports The Star.

    Lawmakers have been alarmed by rising rates of vaping among underage consumers.

    The recent National Health and Morbidity Survey revealed that the rate of cigarette use among adolescents aged 13 to 17 dropped from 13.8 percent in 2017 to 6.2 percent in 2022. For vaping, however, it increased from 9.8 percent in 2017 to 14.9 percent in 2022.

    “This is a wake-up call. The regulations (of the Act) will be enforced to curb this,” said Health Minister Dzulkefly Ahmad at the World No Tobacco Day Carnival in Kuala Lumpur June 2, 2024.

     The war on smoking requires a whole-of-government, whole-of-society approach, he added.

     “This includes non-governmental organizations, teachers, retailers, politicians and enforcement bodies, as well as Malaysians in general. We must be united in curbing the smoking and vaping culture,” he added.

  • French Tobacconists Oppose Price Hike

    French Tobacconists Oppose Price Hike

    Photo: OceanProd

    French tobacconists have objected to a proposal to raise cigarette prices to €25 per pack by 2040, reports Euractiv.

    Cigarettes in France currently retail for around €12.50 per pack, one of the highest rates in the Organization for Economic Cooperation and Development. In Europe, only U.K. and Irish smokers shell out more for their cigarettes.

    Despite the high price, France remains one of the countries with the highest number of daily smokers, and every year tobacco causes 70,000 premature deaths.

    To address this issue, the Senate Social Affairs Committee in a recent report suggested doubling the price over the next 16 years.

    Noting that “the policy of reducing smoking has failed,” the committee recommended increasing the price by at least 3.25 percent every year between now and 2040. According to the Senate, the prevalence of smoking decreases when the price increases by more than 4 percent.

    The Confédération des buralistes, which represents the interests of tobacconists in France, condemned the proposal, arguing that French already leads the way in terms of tobacco taxation. The group said the report disregards the consequences of price, both on the country’s public health and on the network’s economic situation.

    For tobacconists, efforts should focus on the fight against the black market, which account for between 30 percent and 40 percent of cigarettes consumed in France.

    However, this figure is disputed by anti-tobacco association ACT, the directorates of public finances and customs, Observatoire français des drogues et des tendances addictives, who put the figure at around 6 percent.

    France’s 2023-2027 National Tobacco Control Plan, presented in November by former health minister Aurélien Rousseau, currently plans a price of €13 per pack by 2026.

    The EU is likely to review tobacco taxation following the EU elections in June, as the current Commission has not reviewed the 2014 Tobacco Products Directive and the 2011 Tobacco Taxation Directive, as originally planned.

  • Namibia to Regulate E-cigarettes

    Namibia to Regulate E-cigarettes

    Image: sezerozger

    Namibia plans to regulate vapor products and water pipes, reports the Windhoek Observer.

    The country’s Ministry of Health and Social Services wants to amend the Tobacco Act to include those products.

    The goal is to curb the growing use of electronic cigarettes and water pipes across the country. The amendment will also facilitate the development of a comprehensive tobacco strategic plan scheduled for launch later this month.

    Deputy Minister of Health and Social Services Ester Muinjangue stressed the urgency of regulating vaping products, despite existing legal frameworks to combat tobacco use in Namibia. “There is no safe form of tobacco smoke,” she said, rejecting suggestions that vaping and hookah smoking are safer alternatives to traditional cigarette smoking.

    Muinjangue encouraged smokers seeking to quit their habit to utilize existing resources and seek support from health professionals.

  • Bhutan’s Tryst with Health Imperialism

    Bhutan’s Tryst with Health Imperialism

    The author standing with a local in front of a pharmacy stocking NRT gums adjacent to a grocery shop officially selling tobacco. (Photo courtesy of Sudhanshu Patwardhan)

    Without offering locally relevant cessation tools, prohibition is doomed to fail.

    By Sudhanshu Patwardhan

    Bhutan, a country that measures its riches in terms of “gross national happiness,” may have become an unsuspecting victim of a new form of imperialism: health imperialism. A blind copy-paste of Western tobacco control policies, worsened by local gold-plating, may have landed Bhutan in a mess. A visit to the landlocked nation gave the author a unique insight into how prohibition of tobacco without offering locally relevant and innovative tobacco cessation tools threaten this Shangri-la.

    The Forbidden Kingdom

    A series of district-wide tobacco control measures in Bhutan from the 1980s culminated in the declaration of a nationwide ban on the sale of tobacco products in 2004 through a resolution of the National Assembly. Overnight, Bhutan became a poster child of global tobacco control, an emerging David against the Goliath of transnational tobacco companies. Nanny statists got a lifeline, and the “p” word—prohibition—was resurrected after successive failures of over 150 years in alcohol and drug prohibition movements. The Tobacco Control Act of 2010 further enshrined into law restricted access, availability and appeal of tobacco products and gave sweeping powers for arresting those selling or even possessing tax-unpaid tobacco for personal consumption. Bhutan was all set to become a tobacco-free society. A happy nation was also going to become healthier. In theory.

    Market Forces Take Over

    The roller-coaster ride between 2010 and 2019 is captured in the World Health Organization’s regional office’s 2019 publication The Big Ban: Bhutan’s journey toward a tobacco-free society. A big achievement in this period was visible reduction in public place smoking. Otherwise, the optimistic title belies the details of the failed ban confessed in the publication. It is a classic tale of good intentions scuppered by poor execution. A highlight of the data reported there is the difficulty in enforcing the ban, evidenced by availability of tobacco products below the counter in most shops in Bhutan. Tobacco use among 13-year-olds to 15-year-olds went up from 24 percent in 2006 to 30 percent in 2013 based on the Global Youth Tobacco Survey findings. The severe penalties required by the initial law resulted in more than 80 people being imprisoned between 2010 and 2013. There was growing discontent about the disproportionality of the penalties among the people of a nation gradually moving from a benevolent absolute monarchy to a democratic constitutional monarchy. Public furor and rethinking among the lawmakers resulted in amendments and milder punishments, and the law’s “claws (were) trimmed,” states the WHO report. Between 2010 and 2014, permissible quantity for personal possession was steadily increased for both smoked and smokeless tobacco products. The ban and its enforcement were proving ineffective and untenable. And then Covid-19 happened.

    Reversal of a Failed Ban

    The government was obviously losing revenue due to the flourishing black market of smoked and smokeless tobacco products smuggled from India and elsewhere. The fear of tobacco smugglers bringing in the Covid-19 virus was enough excuse to act decisively. In July 2021, the government amended the 2010 Act, thus lifting a decade long ban on local tobacco sales.

    The pragmatism of the politicians who reversed the ban presents a sharp contrast to the previous prohibitionist policy. Today, sales and consumption continue, and based on the most recent (2019) WHO STEPwise approach to surveillance (STEPS) data, 24 percent of those between ages 15 and 60 currently use tobacco products. Sadly, the ban did not make Bhutan a tobacco-free society. Anecdotally, e-cigarettes are also available now in some grocery stores in the capital, Thimphu, and attracting use among smokers and never-smokers. These are not regulated nor used as smoking cessation tools, presenting another area of concern for public health. A ban may not be the answer for these products either. Regulation that balances current smokers’ needs for safer alternatives versus prevention of uptake by the youth and nonsmokers will be key.

    Peering Through an ‘Addiction’ Lens

    I first read about the ban’s overall failure in the 2019 WHO report and then heard about the reversal of the ban during the global Covid-19 pandemic. How did Bhutan land in this situation? There is, of course, economics at play: demand, supply and something to do with a genie being out of the bottle. When I put my doctor’s hat on, a key explanation stares at me: lack of quitting support for the existing 120,000 tobacco users. Reams of self-congratulatory publications and numerous WHO awards to Bhutan since the 1990s have focused on success in awareness-building and restricting access and use. The famous case of the Buddhist monk who was jailed for three years in 2011 for the possession of $2.54 worth of tax-unpaid tobacco misses the point that he was very likely addicted to tobacco and may have needed more than punishment to quit. In the absence of availability of tobacco products, it should have been a human right for him to have access to safer nicotine to manage nicotine withdrawals and achieve craving relief. This assessment should not be used to vilify tobacco users. Instead, it should be a reminder to those in tobacco control that preaching to nicotine-dependent users without offering alternatives is not enough and also unethical. A key demand-side reduction measure, to use Framework Convention on Tobacco Control (FCTC) vocabulary, is that of providing tobacco dependence treatment and services. This is covered under FCTC Article 14 but rarely implemented in low-income and middle-income countries (LMICs), Bhutan included. I saw firsthand recently the country’s struggles with rising tobacco use coupled with a lack of cessation products and services.

    Tobacco Cessation: The Poor, High-Maintenance Cousin

    In Bhutan, like in most LMICs, overall tobacco control is run by public health experts, and tobacco cessation specifically (and separately) falls under the remit of psychiatrists. Neither groups are excited by tobacco cessation for a variety of reasons. Public health professionals often have little or no experience in treating individual patients and have increasingly been sold a unidimensional narrative that the tobacco epidemic is singularly driven by the commercial vested interests of tobacco companies (the “vector”). For them, the tobacco user is a victim of the tobacco industry, should be labeled an addict and then preached at to quit. Psychiatrists, on the other hand, are generally geared toward treating established mental health conditions and severe mental illnesses and even within the “de-addiction” field prioritize substance abuse treatment and alcohol de-addiction over tobacco cessation. Tobacco cessation with nicotine-replacement therapy and other pharmacological interventions are costly and need a level of training and qualification to prescribe—and are therefore cost-prohibitive to be offered at scale. They are also not without their failures, give around 20 percent quit rates at one year in controlled clinical studies and much less success in real-world settings. The success of quitting cold turkey is overrated and often drives policymakers’ wrong beliefs and attitudes about the ease of quitting. Public health tobacco control awareness campaigns and advocacy, on the other hand, are highly visible, scalable, inherently worthy endeavors, and most do not require impact assessment as proof of success. The FCTC’s Article 14 thus remains a neglected tool for reducing harms from tobacco globally and receives little or no funding from international donors and national governments nor any interest from pharmaceutical companies or tobacco companies to innovate in.

    Safer Nicotine Not Widely Available in Bhutan

    Nicotine illiteracy among healthcare professionals and lack of availability of safer nicotine alternatives can translate into poor quitting among tobacco user patients. From my field visits to pharmacies and discussions with frontline healthcare professionals in Bhutan, I noted that 2 mg and 4 mg nicotine gums have only recently become available in some pharmacies in Thimphu, but patches are not stocked. Patients come and buy these over the counter, but there is little record of how long they take it for, their quit and relapse rates and whether their doctors support them in their quit journeys. Varenicline or bupropion are not available for cessation. When called, the “national quitline,” contrary to the claim of the 2019 and 2024 WHO publications, do not deal with tobacco cessation support. Most of the healthcare professionals in Bhutan receive their undergraduate and graduate training in India, Sri Lanka and other nearby Asian countries. Similar to the rest of the world, doctors in Bhutan are not confident about prescribing nicotine-replacement therapy and may harbor misperceptions about nicotine itself. They have not received any tobacco cessation-related training in the past five years, and nicotine-replacement therapy is not available for free or at subsidized prices anymore, unlike other medications in Bhutan.

    Navel-Gazing Time for All?

    The backpedaling by Bhutan on the tobacco ban has not been reported or analyzed widely enough. Bhutan’s failure to rein in tobacco sales and increased use, despite a ban, should be a wake-up call for all parties involved. What was touted as a role model for other countries for eliminating harms from tobacco has instead become a cautionary tale for poor policymaking done to pander to international funders and organizations. The undue influence of a select few Western nations in national health policymaking for LMICs is also a matter of concern as the global geopolitical order rapidly morphs. Projects such as FCTC 2030, funded by the U.K., Norway and Australia, continue to churn out reports such as the Investment Case for Tobacco Control in Bhutan (WHO/UNDP, February 2024), ignoring lessons from the ban, mostly unaware of capacity issues on the ground and not addressing the need of current tobacco users for safer nicotine alternatives. Emergent strong economies such as China and India will no longer tolerate meddling by past colonial powers and imperialist nations in their health policies, but neither should other LMICs.

    Toward Gross National Health

    For a nation of around 750,000 people, tobacco use is claimed to kill between 200 people and 400 people every year—all preventable deaths (side note: the data for the same year varies dramatically between two WHO reports). Global tobacco control has failed Bhutanese tobacco users and their families. For a nation built on principles of sustainability, risky forms of smoked and smokeless tobacco products have no place in society. The mountains, the clean air, the happy smiles and peace-loving people of Bhutan deserve to own tobacco control initiatives, not be made to adopt hand-me-down Western ideologies or policies. That will require the doctors and pharmacists in Bhutan to understand the science of tobacco cessation and harm reduction and make quitting sexy. Availability of nicotine-replacement therapy products, innovation in safer nicotine alternatives and improved cessation services will need to be ensured and incentivized by the government. That has the potential to keep their nation happier and healthier for the coming generations.

    Disclaimer: The author’s work here or elsewhere is dedicated to using ethical and scientific evidence-based approaches to eliminate harms from all risky forms of smoked and smokeless tobacco products. The article is based on the author’s personal conversations with experts and lay people in Bhutan and from shop visits and an analysis of two of the most recent WHO reports on this topic. The intent of this article is to shine a light on a vulnerable LMIC’s experience with unchecked health imperialism to create insight and debate on the impact and implications of such practices. The author holds utmost respect for the nation, the policymakers and the people of Bhutan.

  • BAT Still Committed to Smokeless Future

    BAT Still Committed to Smokeless Future

    Josh Fett (Photo: BAT)

    On World Vape Day (May 30), British American Tobacco outlined a strategic vision to accelerate progress toward building a smokeless world, especially for the Asia-Pacific region, to encourage adult smokers to switch to smokeless alternatives such as vapor products.

    The smoking prevalence among adults in the Asia-Pacific region is amongst the highest in the world, though it continues to fall each year in some markets. However, with various governments setting goals to be “smoke-free” (defined as smoking prevalence falling to 5 percent or less), BAT says that more must be done to realize their ambitions.

    In its vision, the multinational sets out four principles that it believes should be applied for effective and impactful regulation relating to smokeless tobacco and nicotine products:

    1. Access to consumer relevant products: regulations in all countries where cigarettes are sold should also allow a wide range of smokeless alternatives to ensure that consumers can access these alternatives and make informed choices about switching based on the best available scientific evidence.
    2. Adult-only consumer: the use and sale of smokeless tobacco and nicotine products by and to the underage should be prohibited by law.
    3. Product quality and safety: robust and properly enforced quality and safety standards should be at the heart of regulation, to protect consumers.
    4. Robust enforcement: Regulation should provide enforcement authorities with the necessary powers to apply penalties and sanctions to those who fail to comply with regulations, particularly those who supply non-compliant products and provide product to those who are underage.

    “More than 1 billion people globally continue to smoke despite the serious risks,” the company wrote in a statement. “According to population modelling studies, a significant reduction in premature deaths could be achieved if smokers switched exclusively to reduced-risk alternatives.

    “To capitalize on the public health potential offered by smokeless products, appropriate regulation is required to encourage adult smokers to switch, protect consumers with stringent safety standards and prevent underage access and use.”

    BAT noted that countries that embraced this approach have witnessed significant reductions in smoking rates as smokers opt for noncombustible products. The multinational cited the experience of New Zealand, where daily smoking rates have plummeted to 6.8 percent in 2023 from 8.6 percent the previous year, and 16.4 percent in 2012. The U.K., U.S. and Japan too are reporting their lowest smoking rates on record, while Sweden is on track to declaring itself smokefree this year, 16 years ahead of the 2040 EU target.

    According to BAT, the success of these nations in reducing cigarette consumption is largely a result of widespread awareness, availability and usage of smokeless alternatives, such as vapor products, heated products and nicotine pouches.

    “The migration of smokers to these alternatives is crucial both for countries looking to reduce their smoking rates and for global public health more broadly,” said Josh Fett, BAT’s head of corporate and regulatory affairs in the Asia Pacific Region. “Whether or not governments are able to take advantage of these products and maximize their harm reduction potential depends as much on the implementation of progressive, risk-proportionate regulation as it does on changes in consumer behavior.”