Category: Featured

Icelandic Snuff Sales Hurt By Pouches

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Rising sales of nicotine pouches are depressing demand for snuff in Iceland, reports Iceland Review, citing comments made by State Alcohol and Tobacco Co. Director Sveinn Víkingur Arnason.
Iceland began producing snuff in 1941, and consumption peaked in 2019, when 46 tons were produced and sold domestically. Since then, the trend has been steadily downwards, with only 10 tons of snuff tobacco sold in 2023.
While snuff is intended for nasal use, surveys have shown that it has been used predominantly orally in Iceland, which prohibits the sale and production of chewing tobacco.
The decline in snuff sales has been driven in part by the growing popularity of nicotine pouches, which at ISK40 ($0.29) per gram are significantly cheaper than snuff. Snuff tobacco sold by the State Alcohol and Tobacco Co. sells for around ISK80 per gram.
The main reason for this price difference is the fact that nicotine pouches and snuff tobacco fall under different tax schedules.
Arnason said he expects the downward trend in snuff sales to continue.
May 24, 2024
ITC Reports Growth in Cigarette Business

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ITC reported gross Revenue of INR694.46 billion ($8.34 billion) for the 12 months that ended March 31, up 6.8 percent over the comparable period a year earlier. Net revenue of conglomerate’s cigarette businesses was up 7.1 percent.
“After a period of sustained growth momentum, the business witnessed consolidation in volumes on a high base amidst subdued demand conditions in the overall consumption space, even as illicit trade remained at elevated levels,” the company wrote in a statement.
“Differentiated and premium offerings saw robust traction during the year. Sharp escalation in leaf tobacco prices and other inputs, along with increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing.”
During the reporting period, ITC launched several new cigarette brands, including Classic Alphatec, Classic Icon and Gold Flake Indie Mint.
The company continues to be concerned about the strength of the illicit market. While recent stability in cigarette taxes has enabled the legal cigarette industry to claw back some of the volumes lost to illegal traders, India remains the world’s third largest illicit cigarette market, according to ITC, with tax-avoiding products accounting for roughly one-third of the market.
The company said it continues to engage with policy makers for a framework of evidence-based regulations and taxation policies that balance India’s economic imperatives and tobacco control objectives.
May 23, 2024
Agencies Urged to Remove Unauthorized Products

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Seventy-eight U.S. public health and other organizations urged the U.S. Food and Drug Administration, the U.S. Department of Justice and the U.S. Customs and Border Protection to utilize all the enforcement tools at their disposal to clear the market of unauthorized e-cigarette products, including flavored products.
To date, the FDA has authorized the sale of only 23 tobacco-flavored e-cigarette products.
“This means that virtually the entire e-cigarette market consists of unauthorized, illegal products, including a wide variety of flavored products—largely disposables—that FDA has found to be highly appealing to youth,” the groups wrote in a letter addressed to all three agencies.
“This is a wholesale failure to enforce the Family Smoking Prevention and Tobacco Control Act by FDA and other government enforcement agencies. There must be an intensified and coordinated, multi-agency federal effort to enforce the law against these illegal products in an effective and equitable manner.”
The groups urged the adoption of several concrete changes in tobacco enforcement policies and activities, including more frequent use of enforcement tools, such as civil monetary penalties; and prioritization of efforts to stop illegal importation of unauthorized products.
“The failure to adequately enforce the law against unauthorized products has real, and significant public health consequences. We urge FDA, DOJ and CBP to respond with an ‘all hands on deck’ strategy that will use all enforcement tools at their disposal to protect the public health, and particularly the health of our young people, from the flood of illegal, unauthorized e-cigarettes,” the letter writers concluded.
May 23, 2024
C-Stores Campaign Against Age Bans
Credit: Daniel
The New England Convenience Store and Energy Marketers Association (NECSEMA) has launched a grassroots campaign this week to oppose generational bans on tobacco and nicotine products.
The Stoughton, Massachusetts-based association stated that the ban on tobacco sales tied to birthdate threatens civil liberties in Massachusetts. They believe that if unopposed, it could lead to local bans on various other products including gambling, alcohol, cannabis, sugary drinks, fatty foods, and caffeine.
Alex Weatherall, NECSEMA president, stated that these policies are establishing a concerning precedent by giving local boards of health the unilateral authority to determine if an individual is “adult enough” to purchase legal products statewide and nationwide, according to media reports.
Weatherall believes that this sets a dangerous precedent, adding that local officials are imposing their morality on citizens of the Commonwealth. NECSEMA said it created the advocacy group Citizens for Adult Choice to educate the public about the dangers these local bans pose for law-abiding adults in Massachusetts.
May 23, 2024
Universal Income Up

Photo: Taco Tuinstra
Universal Corp. reported sales and other operating revenue of $2.75 billion in fiscal year 2024, up 7 percent over that recorded in 2023. Operating income grew 23 percent to $222 million. The company’s tobacco operations contributed sales and operating revenues of $2.44 billion, $180.5 million more than in 2023.
“Universal Corp. had a positive finish to a strong fiscal year 2024 with notable financial and operational performance in both the fiscal year and quarter ended March 31, 2024,” said chairman, President and CEO George C. Freeman III in a statement.
“Fiscal year 2024 was an exceptional year for our tobacco business, as a favorable product mix, strong customer demand and the sale of larger crops in Africa, compared to fiscal year 2023, drove our strong operating results. Fiscal year 2024 was also a significant building year for our ingredients business.”
While expecting leaf tobacco supply and demand to return to a more balanced position over time, Freeman said tobacco supply remains tight and green tobacco prices elevated. “We continue to leverage our diverse global footprint and financial flexibility to manage these conditions and to execute our tobacco strategies,” he said.
“For example, during the fourth quarter of fiscal year 2024 and into the first quarter of fiscal year 2025, we accelerated buying in Brazil to ensure access to the tobacco we need for our customers [also see “The Great Scramble,” Tobacco Reporter, May 2024].
“This accelerated buying, combined with higher green tobacco prices, resulted in increased use of working capital and higher debt levels at March 31, 2024. We expect most of the net impact on working capital from our accelerated buying strategy to naturally unwind over the next two years.”
May 23, 2024
U.S. States Report Zyn Shortages

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Zyn nicotine pouches are out of stock at multiple retailers that ship across the U.S., and some wholesalers are also reporting difficulty getting the product.
Some smoke shops in New York said they are out of the pouches, and wholesalers in New Jersey and Florida said they’ve been hard to get, Bloomberg reported.
The scarcity comes after Philip Morris International reported that U.S. volumes of the nicotine pouches jumped 80 percent in the first quarter.
There’s also a lawsuit about the products’ nicotine content and growing criticism of marketing practices, raising concern that there could be a regulatory crackdown on the popular cigarette alternative.
Zyn is an important source of growth for Philip Morris International as cigarette smoking declines and the vape industry is increasingly dominated by unauthorized products made in China.
In an earnings call last month, Chief Financial Officer Emmanuel Babeau acknowledged Zyn’s growth was straining the supply chain.
In February, PMI reported that it had shipped nearly 385 million cans of the flavored nicotine pouches in the U.S. in 2023, up 62 percent year-over-year.
The firm expects to do even better business in 2024, forecasting U.S. shipments of around 520 million cans this year, its February earnings report said.
May 23, 2024
Northern Ireland to Adopt Generational Ban

Stormont (Credit: Vivacity Images)
Northern Ireland will participate in the U.K. generational tobacco ban.
The U.K. Tobacco and Vapes Bill aims to phase out the sale of cigarettes. It would make it illegal to sell tobacco products to anyone born on or after Jan. 1, 2009, after they turn 18.
It would also provide powers to address vaping among young people. The bill is part of the U.K. government’s plan for a “smoke-free generation,” according to the BBC.
The Northern Ireland Assembly endorsed a legislative consent motion on May 21 to allow the bill to apply to Northern Ireland.
Northern Ireland Health Minister Robin Swann said the bill aims to “stop people from ever starting to smoke, thus preventing a lifetime of addiction.” He dismissed arguments that the legislation is “nanny statism” and would deny people “freedom of choice.”
On vapes, he said the bill includes regulation-making powers to allow for future restrictions on vape flavors, packaging and point-of-sale displays. The bill is progressing through Parliament despite opposition from several leading Tory figures.
May 22, 2024
PMI Acquires Minority Stake in Eastern Co.

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Philip Morris International has acquired 14.7 percent of Eastern Co., reports Egypt Today.
PMI and Eastern reportedly seek to explore potential strategic areas for collaboration in technology, manufacturing and innovation.
“We look forward to exploring potential areas of cooperation with Eastern, including opportunities to provide adult smokers in Egypt with better options than cigarettes,” said Fred de Wilde, PMI president for South and Southeast Asia, the Commonwealth of Independent States and the Middle East and Africa, in a statement.
In November, Global Investment Holdings, an investment firm based in the United Arab Emirates, paid EGP16.4 billion ($531.6 million) for 669 million shares in Eastern Co.
Eastern Co.’s primary shareholders include the state-owned Holding Company for Chemical Industries (20.9 percent), the Allan Gray Equity Fund (7.2 percent) and the shareholders union of the Eastern Co. (6 percent), with the remaining 36 percent of shares trading freely on the stock exchange.
Egypt has been selling stakes in 35 state-owned companies through offering shares to strategic investors.
Eastern Co. is Egypt’s largest cigarette manufacturer, with a portfolio that also includes cigars and pipe tobacco, among other products.
May 22, 2024
JTI Launches Ploom X Advanced in Italy

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Japan Tobacco International launched its Ploom X Advanced in Italy’s travel retail market at Milan Malpensa Airport.
Already available in duty-free stores in Japan and Switzerland, the product comes in a variety of device colors, sticks and accessories.
“I was excited to see JTI’s premium offer in the RRP [reduced-risk product] category taking off in Milan,” said JTI Global Travel Retail Sales Director Simone Mammi in a statement. “Our Ploom X Advanced device has been launched in Italy travel retail, alongside Camel heated-tobacco sticks, available in four flavors and tobacco intensities (gold, bronze, burgundy and teal).”
JTI noted that with Avolta as one of its longstanding retail partners at Milan Malpensa Airport, it optimized the premium front-of-category space to provide impactful showcasing that, when coupled with ongoing consumer engagement, “should deliver promising results.”
The Ploom X Advanced device was named the best product available in the heated-tobacco category at the U.K. Product of The Year Awards 2024.
May 22, 2024
Food for Thought

(Photos: Stuart Mitchell)
“You couldn’t make it up.” That was how Simon Clark, the director of the Freedom Organization for the Right to Enjoy Smoking Tobacco (Forest), summed up the way in which the U.K. government had, in October last year, renegued on earlier assurances and announced a generational ban on tobacco sales.
Clark was speaking as co-host of a Beat the Ban lunch held at the Boisdale Restaurant in London on May 21. The proposed ban, currently being pushed through parliament, would make it illegal in the U.K. to sell tobacco products to anyone born on or after Jan. 1, 2009.
Clark pointed out that this would mean a person of a certain age would be able to buy tobacco while another person, one year, or, in some cases, just one day younger, would not be able to do so legally. Eventually, a person 70 years of age would not be able to buy tobacco legally.
Forest is opposed to the proposed ban for several reasons, but mainly because it believes the ban would infantilize young adults and increasingly older adults, driving some of them towards the black market and criminal gangs, while doing nothing to stop sales of tobacco products to children, which are already illegal.
What was extraordinary, Clark said, was that while, in April 2023, the government had made it clear it did not intend to raise the minimum age for the sale of tobacco, in October, the prime minister, Rishi Sunak, announced plans for the generational ban.
“In our view, the Tobacco and Vapes Bill is a desperate attempt by a desperate prime minister to leave a legacy—any legacy—however unconservative, before the next general election [due to be held this year or, at the latest, January 2025],” said Clark.
Clark was scathing, too, about the way the bill is being “steamrollered” through parliament. Following a short public consultation before Christmas, the government had announced it would not consider any submissions from groups with links to the tobacco industry, which, for instance, included Forest and even retailers. “To the best of my knowledge, that has never happened before,” he added.
After its second reading, the bill entered its committee stage, when 17 MPs were appointed to the Committee, 16 of whom had voted for the bill and the other of whom was known to support it. And when it came to inviting people to give oral evidence to the Committee, witnesses were almost exclusively supporters of the bill.
“Not only has the process been absolutely scandalous, the bill as it stands is illiberal, unenforceable, and has significant unintended consequences,” said Clark. “It will drive the legitimate sale of cigarettes and tobacco underground,” he added, before calling on those so minded to write to their MPs in protest,
Clark’s co-host, Ranald Macdonald, the founder and MD of the Boisdale restaurants, was unable to attend the lunch but sent a message of support along with a special pleading for the smokers of fine cigars.
And the 60 lunch guests, who included MPs, parliamentary researchers, think tank staff, retailers, tobacco industry representatives and journalists, heard from a string of speakers representing or simply speaking up for retailers, young adults and a variety of tobacco products, including pipe tobacco and snuff that will also be covered by the bill should it go through. —George Gay
Editors’s note:
Hours after this story had been submitted, U.K. Prime Minister Rishi Sunak announced that a general election would be held on July 4, meaning that parliament was due to be dissolved on May 30 and leaving too little time for the tobacco and vapes bill to complete its passage through parliament. This is unlikely to be the end of the matter, however, because the policy underpinning the bill had cross-party support and could well arise like the phoenix in the future.
George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.

May 22, 2024