Category: Featured

  • Zyn Sued for Overcharging

    Zyn Sued for Overcharging

    TR Archive Photo

    Swedish Match North America is being sued for allegedly overcharging U.S. customers for its popular tobacco-free Zyn nicotine pouches.

    The class action lawsuit, filed on Monday in federal court in Richmond, Virginia, alleges that the Philip Morris International subsidiary is violating federal and state antitrust laws concerning the market for modern oral nicotine pouches.

    The plaintiff, a resident of Florida, claimed that Swedish Match illegally gained monopoly power through various business practices aimed at eliminating rival Dryft from the market, Reuters reports.

    Swedish Match now has an estimated 80 percent of the market for nicotine pouches, which the company sells in different flavors and strengths for about $6 a tin, according to the lawsuit.

    In a statement, Philip Morris, which was not named as a defendant, said, “We believe the plaintiff’s claims are without merit, and we intend to vigorously defend against them.

    Marlboro maker Philip Morris, in 2022, acquired the Swedish tobacco and nicotine products company for $16 billion. Philip Morris has stated an ambition to move away from health-harming cigarettes.

    The consumer lawsuit seeks class action status for Zyn consumers and damages of more than $5 million.

  • Imperial Releases Full-Year Results

    Imperial Releases Full-Year Results

    Imperial Brands has released its full-year results for the year ended Sept. 30, 2024.

    The company’s net revenue was up 4.6 percent from tobacco and next-generation products. It saw aggregate market share gains in its five priority markets with four out of five markets in share growth.

    Next-generation product net revenue was up 26 percent with growth from all three regions and improved gross margins. Growth at Logista reflected strong tobacco pricing and benefits of prior-year acquisitions.

    Adjusted earnings per share were up 10.9 percent, driven by profit growth and share count reduction. Reported earnings per share were up 19.1 percent.

    The company saw a free cash flow of £2.4 billion.

    Capital returns of approximately £2.8 billion are underway for full-year 2025 with £1.25 billion buyback and full-year 2024 dividend up 4.5 percent.

    “As we enter the final year of our current strategy, the investment we have made in consumer capabilities, cultural transformation and agile ways of working has supported another year of accelerated financial delivery and growing capital returns,” said Stefan Bomhard, CEO. “These results demonstrate how we are fulfilling our role as an effective challenger for the industry, able to deliver consistently against operational and financial expectations.

    “In tobacco, investment in our brands and sales force initiatives have delivered aggregate market share gains across our five priority markets while delivering strong pricing. This was supported by an encouraging stabilization in German market share for the first time under our strategy.

    “In next-generation products (NGP), we continue to build scale across our footprint with net revenues up 26.4 percent at constant currency driven by growth from all three regions and market share growth in all three categories. Our partnership approach to product innovation has enabled us to launch new products across all three categories during the year. This included our successful entry to the fast-growing modern oral category in the U.S. with our brand Zone.

    “Our operational delivery coupled with consistently strong cash flow generation has supported enhanced shareholder returns with increases to both our ordinary dividend and share buyback. We are on track to deliver five-year capital returns of c. £10 billion, representing 67 percent of our market capitalization in January 2021 when we launched our strategy. We look forward to presenting the next phase of our strategy at a Capital Markets Day on 26 March 2025.”

  • Surgeon General’s Report Addresses Disparities

    Surgeon General’s Report Addresses Disparities

    A new U.S. Surgeon General’s report, Eliminating Tobacco-Related Disease and Death: Addressing Disparities: A Report of the Surgeon General, highlights the latest scientific evidence on disparities in commercial tobacco product use, exposure to secondhand tobacco smoke, exposure to marketing of tobacco products and smoking-related health outcomes.

    The report outlines tobacco prevention strategies and control strategies that have the potential to reduce disparities. It notes that despite progress in reducing tobacco use at the population level, these disparities still exist.

    “At IGTC [Institute for Global Tobacco Control], we believe that everyone has a fair and just opportunity to attain their highest level of health, unburdened by the negative effects of tobacco,” said Ryan Kennedy, an IGTC associate professor who contributed to the report as a senior scientific editor. “Advancing tobacco-related health equity is central to the Surgeon General’s call to action, which entailed rigorous review of the latest scientific evidence behind disparity drivers as well as the data on interventions to prevent and reduce health disparities and a vision for equitably pursuing the tobacco endgame.”

    According to an IGTC statement, the report asserts that the tobacco industry has specifically targeted certain groups for decades, including communities with high populations of Black people, Hispanic people and people with lower incomes. The report also pinpoints the design, engineering and marketing of menthol cigarettes and other flavored tobacco products as instrumental in perpetuating tobacco initiation, addiction and sustained use.

    The report recommends restricting the availability of menthol cigarettes and applying an equity-informed approach to data from surveillance and intervention research. “Interventions designed to reduce the use of tobacco products and the influences of the tobacco industry on society should accompany efforts to remove the underlying social, structural, commercial and political drivers of health inequities,” the report states.

    The report also recommends reducing the affordability, accessibility, appeal and addictiveness of tobacco products, eliminating secondhand smoke exposure, implementing high-impact media campaigns and providing barrier-free access to cessation support with broad reach to disparate populations.

    IGTC Director Joanna Cohen, who served as a reviewer, stated, “The importance of this report cannot be overstated. Tobacco-related health disparities exist worldwide. This report offers a meticulous review of the existing evidence and makes recommendations that can put an end to tobacco-related health disparities.”

  • Kazakhstan Urged to Reconsider Policies

    Kazakhstan Urged to Reconsider Policies

    The Coalition of Asia Pacific Harm Reduction Advocates (CAPHRA) today called on the government of Kazakhstan to reassess its stance on tobacco harm reduction (THR) products, citing compelling evidence from Japan demonstrating the significant health and economic benefits of embracing safer alternatives to smoking. 

    A recent study published in the journal Healthcare reveals that if 50 percent of smokers in Japan switched from combustible cigarettes to heated tobacco products (HTPs), it could prevent 12 million patient cases and save JPY 454 billion in healthcare costs. This data underscores the immense potential of THR strategies in countries with high smoking rates. 

    Nancy Loucas, the executive coordinator of CAPHRA, stated that the Japanese example clearly illustrates that HTPs can be an effective harm reduction tool in nations where smoking prevalence remains high, and other safer nicotine products are unavailable.

    “Kazakhstan, with its significant gender disparity in smoking rates and tobacco-related health issues, could greatly benefit from adopting a more progressive approach to THR. Kazakhstan’s current policies treat all nicotine products, including less harmful alternatives, the same as traditional cigarettes,” Loucas explains in an e-mailed release. “This approach, coupled with the recent ban on vapes and high taxes on smokeless alternatives, demonstrates a concerning lack of acceptance for harm reduction strategies. 

    “By ignoring the potential of THR products, Kazakhstan is missing a crucial opportunity to save lives,” Loucas added. “Our analysis suggests that embracing harm reduction policies could prevent 165,000 premature deaths in Kazakhstan over the next four decades.  

    The government must reconsider its stance for public health, stated Loucas.  CAPHRA urges Kazakh policymakers to: 

    1. Review and revise current regulations to differentiate between combustible cigarettes and less harmful alternatives. 
    2. Following Japan’s successful model, the introduction of HTPs should be considered as a harm reduction tool. 
    3. Engage with public health experts and THR advocates to develop evidence-based policies. 
    4. Implement a tiered taxation system encouraging smokers to switch to less harmful products. 

    “The time for Kazakhstan to act is now,” Loucas stated. “By embracing tobacco harm reduction, the country can significantly improve public health outcomes, reduce healthcare costs, and potentially narrow the life expectancy gap between men and women. We stand ready to support Kazakhstan in developing and implementing effective THR policies.” 

  • IKE Tech, Ispire to File PMTA for Age Gating Technology

    IKE Tech, Ispire to File PMTA for Age Gating Technology

    Ispire Technology and IKE Tech announced a successful pre-premarket tobacco product application (PMTA) meeting with the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) for their age verification technology for electronic nicotine delivery systems (ENDS).

    According to an e-mailed release, the technology aims to prevent youth access while expanding adult market access to flavored PMTA-authorized products. IKE Tech is a joint venture among three leading technology and research companies Ispire and Touch Point Worldwide d/b/a Berify and Chemular Inc.

    IKE Tech will submit a component PMTA, which would allow ENDS manufacturers to incorporate their blockchain-based age-gating solution if authorized. The FDA indicated potential priority review consideration and acceptance of a component PMTA. The company plans to complete the required studies in Q1 2025.

    This critical regulatory milestone marks an essential step in the journey to provide an innovative, secure universal solution aimed at preventing youth access to ENDS and expanding the market for adults who choose to use flavored PMTA-authorized products, according to the release.

    “The IKE Tech identity and age verification technology unlocks opportunities for adults who choose to use flavored vapor products while introducing a pioneering approach to reducing youth access and usage,” the release states.

    Due to its innovative design, reliance on blockchain technology, and partnership with leading identity and age verification providers, the IKE Tech system is an advanced component that could be used — in any ENDS device — to ensure only authorized adult users can access vaping products.

    FDA alignment on key points:

    • Component PMTA: IKE Tech will submit a PMTA for a component, as opposed to a finished tobacco product to be sold to consumers, and the FDA indicated it will accept such a component PMTA if all statutory requirements are met. Additionally, due to the fact this component employs novel point-of-use technology, the FDA indicated it will consider a request to grant the IKE Tech system priority review. If authorized, the component PMTA would allow ENDS manufacturers to use the IKE Tech system in their finished tobacco product PMTAs, as a plug-and-play age-gating solution, which may allow for the approval of a variety of flavored ENDS products.
    • Creation of Tobacco Product Master File (TPMF): IKE will create and file a TPMF for the IKE component. Once authorized, the component and TPMF can, subject to agreement, be available to ENDS device manufacturers for incorporation into products.

    IKE Tech anticipates completing the required studies for the component PMTA for the IKE Tech system, including the Identity and Age Verification component in Q1 2025.

    “Our commitment to harm reduction through innovation and our collaborative efforts with regulators are central to Ispire’s mission,” said Michael Wang, Co-CEO of Ispire. “We are proud to introduce technologies that are designed to responsibly support adult consumer choice while significantly reducing youth access. This technology represents our dedication to aligning with regulatory guidance and setting new standards for safer

     

  • Transition to Safer Products Underway: Report

    Transition to Safer Products Underway: Report

    Image: Rain

    A new report from Knowledge Action Change (KAC) describes the extent to which safer nicotine products (SNP) are replacing and substituting for combustible and risky oral tobacco products.

    Co-authored by experts in harm reduction, data science and economics, The Global State of Tobacco Harm Reduction 2024: A Situation Report (GSTHR 2024) considers what is driving these changes, how different regulatory environments have developed, and the complex interplay between products, consumers, and policy and regulation.

    The latest market data shows that while sales of combustible tobacco remain significantly higher than sales of SNP, two key shifts are occurring in the tobacco and nicotine market: first, the total market share of SNP is increasing, and second, inflation-adjusted combustible tobacco sales are declining, while SNP sales are experiencing rapid growth.

    Although the nominal value of combustible tobacco sales increased from $752 billion in 2015 to over $1 trillion in 2024, when adjusted for inflation (and assuming a constant currency value), combustible tobacco sales actually decreased to $685 billion in 2024—an 8.9 percent decline. Meanwhile, inflation-adjusted SNP sales grew nearly sixfold from 2015, reaching, in non-adjusted terms, $96 billion in 2024.

    Further analysis shows, however, that Chinese data skews these figures. China’s tobacco market accounts for an astonishing $344 billion of the $1 trillion global combustible tobacco market. Despite being the global center of production for nicotine vapes, the Chinese market for all SNP is extremely small, at less than 1.2 percent of its market for combustibles. GSTHR analysis removing China from the calculations reveals the true scale of the acceleration in the global SNP market: it has reached 12.3 percent of the total tobacco and nicotine market in 2024, up from virtually zero in 2004.

    The evidence from this report shows that when safer products are appropriate, acceptable, accessible and affordable—people will switch.

    Gerry Stimson, founder, KAC

    According to KAC, legal access to a range of SNP will be essential for the billion people who smoke worldwide to benefit from tobacco harm reduction (THR). Research undertaken for GSTHR 2024 shows that more than two-thirds of the world’s adult population can now legally access at least one form of SNP. Access to combustible tobacco products, by contrast, remains legal for 100 percent of the world’s adult population. The report also reveals that the global number of vapers has increased from 58 million in 2018, to reach an estimated 114 million in 2023. With 30 million people using other safer nicotine products, this means the GSTHR estimates there are now around 144 million users of SNP worldwide.

    “Harm reduction is often thought about as policies and strategies, driven by public health. But it isn’t only this. It’s also what people do themselves to reduce risks and improve their own health,” said KAC Founder Gerry Stimson in a statement. “Governments and both international and national health organizations, need to help create an environment in which people can be informed and empowered to make those safer choices. And the evidence from this report shows that—when safer products are appropriate, acceptable, accessible and affordable—people will switch, in fact they are already switching, in their millions.”

  • Thailand Launches Track-and-Trace System

    Thailand Launches Track-and-Trace System

    Photo: rangizzz

    Thailand is launching a track-and-trace system that allows smokers to verify the authenticity of their cigarettes by scanning a QR code, reports The Pattaya News.

    According to authorities, the innovation enhances tax collection efficiency, promotes transparency, and ensures compliance with international standards.

    Consumers can use smartphones to scan unique QR codes on cigarette excise stamps, accessing details such as the brand, manufacturer, tax payment date, shipment location and price.

    Discrepancies between the displayed information and the product can indicate contraband or counterfeit goods. Such illicit products may not meet quality standards and could pose serious health risks due to unregulated ingredients, says the Thai government.

    The system allows the public to report suspicious items directly to the Excise Department through a built-in whistleblowing feature.

  • Tucker Carlson Launches Nicotine Pouch

    Tucker Carlson Launches Nicotine Pouch

    Tucker Carlson has launched his own nicotine pouch brand, ALP, which the conservative American commentator touts as “the first nicotine pouch brand made by and for adults who unapologetically love nicotine.”

    ALP will be sold, marketed and distributed through ALP Supply Co., a newly formed 50/50 joint venture between the Tucker Carlson Network and Turning Point Brands. The product comes in three nicotine strengths—3 mg, 6 mg and 9 mg—and in four distinct styles, including Chilled Mint, Mountain Wintergreen, Refreshing Chill and Tropical Fruit.

    “There’s no reason consumers should be forced to buy nicotine pouches from soulless, pronoun loving, politicized conglomerates that despise them and their culture,” said Carlson in a statement. “With ALP, they now have an alternative that is delicious and far better than Zyn, which in case you haven’t noticed is as dry as a teabag.”

    A portion of ALP profits will go to charities that align with the values of its consumers, such as forest restoration, protecting former K9 servicemembers and funding trade school scholarships for Americans.

    According to an earlier article in The Wall Street Journal, Carlson decided to enter the tobacco business because of the way Zyn manufacturer Philip Morris International responded to an off-color remark he made in 2023 about America’s bestselling nicotine pouch.

    Until recently, Carlson styled himself as an unofficial spokesman for Zyn. He talked up the brand on frequent podcast appearances. “The truth is, Zyn is a powerful work enhancer and also a male enhancer, if you know what I mean,” Carlson told comedian Theo Von in an interview last October.

    Carlson’s representatives then pitched PMI on forming a partnership with the brand. The multinational declined, citing Carlson’s commentary.

    “While we understand that these may be Mr. Carlson’s views or made in jest, these statements lack a scientific foundation,” the tobacco company wrote. “Given Mr. Carlson’s popularity and reach, these statements could promote a misunderstanding and misuse of our products.”

    Carlson said the message enraged him.

    “Of course I wasn’t making a medical claim about their product. I was just joking,” he told The Wall Street Journal. “So I thought: ‘I’m going to launch my own product that’s not controlled by, you know, humorless, left-wing drones.’”

  • Marijuana More Popular in U.S. Than Cigarettes: Poll

    Marijuana More Popular in U.S. Than Cigarettes: Poll

    TR Archives

    American adults are now more likely to smoke marijuana than tobacco cigarettes.

    That’s according to new survey data from Gallup finding that 15 percent of U.S. adults reported that they smoke cannabis, which is more than the 11 percent of those who told the polling firm that they had smoked any cigarettes in the past week.

    “While not statistically different from the average of 14 percent in 2021-2022,” Gallup said of the latest two-year average of U.S. marijuana use polling data, the rise to 15 percent is “consistent with the upward trend in recent years.”

    Among other findings, the latest data—from 2023 to 2024—indicate that men are more likely than women to report smoking marijuana, at 17 percent compared to 11 percent, media reports. Younger adults, ages 18 to 34, were also more likely (19 percent) to smoke cannabis than adults aged 35 to 54 (18 percent) and those 55 and older (10 percent).

    Gallup says the results are reported in two-year averages to improve statistical reliability.

  • Robert Kennedy, Jr. Tapped to Lead Trump’s HHS

    Robert Kennedy, Jr. Tapped to Lead Trump’s HHS

    President-elect Donald Trump has nominated Robert F. Kennedy, Jr. to serve as the new secretary of the Department of Health and Human Services (HHS). The effects Kennedy will have on the nicotine market remain unclear. Kennedy must still be confirmed by Congress.

    “For too long, Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health,” Trump posted. “The Safety and Health of all Americans is the most important role of any Administration, and HHS will play a big role in helping ensure that everybody will be protected from harmful chemicals, pollutants, pesticides, pharmaceutical products, and food additives that have contributed to the overwhelming Health Crisis in this Country.”

    As the leader of HHS, Kennedy will oversee the FDA, which regulates vaping, nicotine pouches, and all other nicotine and tobacco products through its Center for Tobacco Products.

    Kennedy’s position on vaping, nicotine, and tobacco harm reduction (THR) remains an unknown. During the presidential campaign, Trump promised that, if elected, he would “save vaping” after meeting with Tony Abboud of the Vapor Technology Association.

    “I saved Flavored Vaping in 2019, and it greatly helped people get off smoking,” Trump said on his Truth Social platform in September. “I raised the age to 21, keeping it away from the ‘kids.’ Kamala and Joe want everything banned, killing small businesses all over the country. I’ll save Vaping again!”