Category: Featured

  • Dan Gallagher President Smoker Friendly

    Dan Gallagher President Smoker Friendly

    Credit: Smoker Friendly

    The Cigarette Store, which operates as Smoker Friendly, announced on Monday that Dan Gallagher will be its new president, effective April 17.

    Gallagher has worked for the fuel and tobacco retailer since it was founded in 1991 and has been its executive vice president and chief operating officer since 2012. He’ll continue in those roles as he takes on the additional title of president, according to a press release.

    Gallagher is replacing his brother Terry Gallagher Jr. as the president of Smoker Friendly. Terry Gallagher will remain the CEO and chairman of the board of the family-owned company.

    Terry Gallagher Jr.

    “Dan has been instrumental in the growth of Smoker Friendly since its inception and key in establishing the great culture we have in this company,” Terry Gallagher Jr. said in the release. “Those of you who have worked closely with Dan know he is very deserving of this role and extremely capable of leading this company.”

    Smoker Friendly’s change at the president level comes during a busy period for the company, which is coming off a 54-store acquisition in March. Those locations, formerly Bob’s Discount Tobacco Shops in Indiana, are being rebranded to Smoker Friendly stores.

    Boulder, Colorado-based Smoker Friendly owns and operates 342 stores across 13 states. The Cigarette Store is the largest tobacco store retailer in the U.S., operating a mix of tobacco stores, cigar lounges, liquor stores, and fueling locations under the Smoker Friendly, Tobacco Depot, Smoke ’N Go, Havana Manor, and Gasamat banners.

  • FDA Warns 14 Sellers of Illegal Flavored Vapes

    FDA Warns 14 Sellers of Illegal Flavored Vapes

    The U.S. Food and Drug Administration announced on May 1 that it had sent warning letters to 14 online retailers. The reason for the warning letters was that these retailers were selling unauthorized e-cigarette products.

    The warning letters specifically mentioned the sale of disposable e-cigarette products marketed under various brand names such as Elf Bar/EB Design, Esco Bars, Funky Republic, Hyde, Kang, Cali Bars, and Lost Mary, according to press release.

    The retailers receiving these warning letters sold or distributed e-cigarette products in the United States that lack authorization from FDA, in violation of the Federal Food, Drug, and Cosmetic Act.

    Warning letter recipients are given 15 working days to respond with the steps they will take to address the violation(s) cited in the warning letter and to prevent future violations. Failure to promptly address the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties.

    The agency announced on April 30 that the U.S. Marshals Service seized more than 45,000 unauthorized e-cigarette products valued at more than $700,000 in California.

    The seized products were mostly flavored, disposable e-cigarette products, including brands such as Puff Bar/Puff, Elf Bar/EB Design, Esco Bar, Kuz, Smok and Pixi.

  • 22nd Century Eliminates Debt

    22nd Century Eliminates Debt

    Photo: Photo: Jade

    22nd Century Group has entered into a binding letter of agreement to redeem $5.2 million in outstanding principal and interest associated with the Omnia subordinated note and outstanding warrants.

    The agreement will exchange consideration of approximately $248,000 in cash, 1.15 million shares of common stock priced at $2.14 per share and 1.15 million shares of prefunded warrants priced at $2.14 per share as consideration of the debt. Additionally, the company will issue to Omnia 460,000 warrants with a term of five years and an exercise price of $2.14 per share.

    “Paying Omnia at maturity with equity greatly improves our balance sheet, preserves cash for growing our operating business and significantly increases shareholder equity,” said Chairman and CEO Larry Firestone in a statement. “This transaction also reduces our monthly interest expense and adds to the progress made on increasing sales and margin while reducing operating costs. This is a key milestone toward reaching our goal of being cash positive in the first quarter of 2025.”

  • King-size Smokes to Display Warnings

    King-size Smokes to Display Warnings

    Photo: Adobe Stock

    Starting today, every king-size cigarette sold in Canada must have a health warning printed on its filter section, reports CTV News.

    The new advisories warn smokers in English and French of the products’ ability to cause impotence, leukemia and organ damage. Often a pioneer in tobacco policies, Canada is the first country to mandate such requirements.

    When the measure took effect in August 2023, Ottawa gave tobacco companies and retailers a series of rolling deadlines to implement the rules. Tuesday’s deadline affects manufacturers with regard to king-size cigarettes only. According to Health Canada, the rule will apply to smaller, regular-size cigarettes on Jan. 31, 2025.

    Retailers can carry king-size cigarettes without the new labels until July 31, 2024, and April 30, 2025, for the regular ones.

    Once fully implemented, every cigarette sold in Canada will feature one of these six warnings:

    • Cigarettes damage your organs;
    • Cigarettes cause cancer;
    • Tobacco smoke harms children;
    • Cigarettes cause impotence;
    • Cigarettes cause leukemia; or
    • Poison in every puff.

    The Canadian Cancer Society hopes the new labelling rules contribute to its goal of reducing smoking to 5 percent by 2035.

    In 2001, Canada became the first country to require picture warnings on the outside of packages and small flyers with health messages inside them.

  • U.S. Marshals Seize Unauthorized Vapes

    U.S. Marshals Seize Unauthorized Vapes

    Photo: APchanel

    The U.S. Marshals Service seized more than 45,000 unauthorized e-cigarette products valued at more than $700,000 in California. The seized products were mostly flavored, disposable e-cigarette products, including brands such as Puff Bar/Puff, Elf Bar/EB Design, Esco Bar, Kuz, Smok and Pixi.

    “FDA has been unequivocally clear that we are committed to using the full scope of our enforcement tools—including seizures—to hold those who peddle unauthorized e-cigarettes accountable,” said Brian King, director of the FDA’s Center for Tobacco Products, in a statement. “The writing is on the wall for those in the tobacco product supply chain who fail to heed the law.”

    This action represents the first time the U.S. Food and Drug Administration and the Department of Justice (DOJ) have seized tobacco products in coordination with the U.S. Marshals Service.

    The seizure initially targeted products being held and sold by MDM Group, a distributor doing business as Eliquidstop.com. FDA issued a warning letter to MDM Group in May 2023, for offering unauthorized, flavored e-cigarette products for sale or distribution. In January 2024, FDA conducted a follow-up inspection of the firm and determined that it continued to commercially market its illegal products. While conducting the seizure at MDM’s facility, the agencies were informed that several firms may have an ownership interest in the unauthorized e-cigarettes seized.

    As of April 2024, the FDA had issued approximately 670 warning letters to firms for manufacturing and/or distributing illegal e-cigarette products and issued more than 550 warning letters to retailers for the sale of unauthorized e-cigarettes. The agency has also filed civil money penalty complaints against more than 50 e-cigarette manufacturers and more than 100 retailers for manufacture and/or sale of unauthorized new tobacco products, as well as complaints for permanent injunction against seven e-cigarette manufacturers.

  • Larson to Direct Programs at FSFW

    Larson to Direct Programs at FSFW

    Elsa Larson (Photo: FSFW)

    Elsa Larson has assumed the role of director of programs at the Foundation for a Smoke-Free World.

    In this new role, Larson will assist with strategic planning, review, analysis and implementation of grants. She will help develop requests for proposals, review applications, recommend funding and evaluate the progress of grant projects. Larson will also collaborate closely with the organization’s communications team to disseminate research findings and empower people who smoke to find cessation solutions that work for them.

    “I’m excited to start the next chapter of my public health career, helping people live their longest and healthiest lives through empowered behavior change,” said Larson in a statement.

    Larson brings two decades of experience in public health, behavior change and risk reduction. She began by working in HIV prevention through needle exchange programs and other community-based interventions. She led the HIV prevention program for the Rhode Island Department of Health before transitioning to the state’s tobacco control program. She later served as a senior regulatory scientist in evaluating the potential impact of reduced-risk nicotine products on adult smoking behavior and cessation.

    She will report to Erik Augustson, vice president of programs.

    “It’s a pleasure to bring Elsa on board. She will enhance our ability to accelerate rigorous science in support of ending the global smoking epidemic,” said Augustson.

    Larson earned her M.A. and Ph.D. in behavioral science (health psychology) and an M.S. in pharmacoepidemiology from the University of Rhode Island.

  • U.S. IQOS Targets ‘Achievable’: Analysts

    U.S. IQOS Targets ‘Achievable’: Analysts

    Photo: elenavah

    Philip Morris International’s goals for its heated tobacco products in the United States are realistic according to analysts cited by Reuters.

    Today marks the expiration of Altria Group’s exclusive right to distribute PMI’s internationally popular IQOS tobacco-heating device and consumables in the U.S., leaving PMI free to compete in the world’s most lucrative tobacco market with its top noncigarette brand.

    The multinational plans to launch IQOS in the U.S. in the second quarter. PMI wants to get a 10 percent share of total U.S. cigarette and heated tobacco volumes within around five years of it launching the latest version of its device, which is not expected until at least 2025.

    It will have to develop the category almost from scratch. Unlike in other developed countries, heated tobacco products are virtually nonexistent in the U.S market, where sales of noncombustible nicotine products are dominated by e-cigarettes.

    Research by Bernstein analyst Callum Elliott in other markets suggests that high vaping rates need not hurt heated tobacco take-up.  “Maybe the 10 percent … target really could be achievable?” he wrote in a note to investors.

    Another factor that should work in PMI’s favor is the fact that the U.S. Food and Drug Administration has authorized PMI to market IQOS as reducing exposure to harmful chemicals versus cigarettes. The FDA has not done the same for vapes.

    As a result, IQOS could have lower taxes, which would help to ease its relatively high price tag.

    And unlike Altria, PMI need not worry about cannibalizing sales of its traditional tobacco products, as it sells no combustible cigarettes in the U.S.

    Sean King, equity analyst at top-20 PMI investor Columbia Threadneedle, believes PMI’s targets are achievable.

    With an estimated $20 billion profit pool up for grabs and no cigarette revenues to worry about, PMI can put its firepower behind IQOS success, he said.

     

  • Kgosi Letlape Advocates for Harm Reduction

    Kgosi Letlape Advocates for Harm Reduction

    Kgosi Letlape (Photo courtesy of Kgosi Letlape)

    Kgosi Letlape, co-founder of the Africa Harm Reduction Alliance, has called on governments to prioritize evidence-based harm reduction strategies in improving public healthcare.

    Speaking at the fourth Africa Healthcare Awards and Summit (AHAS), which took place April 22-23 in Accra, Letlape said prohibitory approaches do not work in mitigating the risk of substances and behaviors that are detrimental to health including smoking, drug and alcohol abuse as well as sexually transmitted diseases.

    “Bans don’t solve any behavioral problems, and this truth should not be overlooked by policymakers. Harm reduction offers a practical and transformative approach. It empowers individuals to make informed choices, promoting health and self-direction,” said Letlape.

    Giving tobacco harm reduction as an example he said there was evidence showing that countries that embraced non-combustible nicotine products as an alternative to cigarettes were bringing their smoking rates down, adding that these products reduced the risks of tobacco related illnesses.

    “In Sweden the uptake of snus has been demonstrated to have reduced the incidence of tobacco related disease for example lung cancer and cardiovascular disease” Letlape said, highlighting the critical role of risk reduced products.

    “The problem with cigarettes lies in combustion, not nicotine itself. Non-combustible nicotine delivery methods significantly reduce harm. By choosing non-combustible options, individuals can mitigate risks associated with tobacco use.” That is the reason nicotine replacement therapy has been offered for the last three decades.

    Under the theme “Advances in Population Health – Tackling Inequalities and Access: A One Health Approach,” AHAS 2024 is being attended by healthcare professionals, policymakers, innovators and stakeholders from across Africa to discuss pressing issues in healthcare and foster collaboration for sustainable solutions.

  • Zim Growers Warned Against ‘Nesting’

    Zim Growers Warned Against ‘Nesting’

    Photo: Taco Tuinstra

    Farmers caught “nesting” their bales—sneaking nontobacco-related material (NTRM) into tobacco bales to increase bale weight or concealing bad tobacco under good-quality leaf to deceive buyers—can expect serious repercussions, reports The Herald, citing a social media post by Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) warned.

    Cases of tobacco nesting have been increasing, according to the regulator.

    “Warning! Tobacco nesting is a serious crime, desist from it. This can result in arrest, hefty fines, criminal prosecution and grower deactivation,” the TIMB posted on X (formerly Twitter).

    Nested tobacco is forfeited to the TIMB, and grower numbers required to participate in sales are blocked. Offending farmers must pay a fine of $30 per violation.

    “As TIMB, we are conducting training and awareness campaigns to discourage the sale of nested tobacco. Nesting is an offense that incurs a fine and results in the loss of tobacco,” said Chelesani Tsarwe, TIMB public affairs officer.

    The TIMB is also working to curb side marketing and to create a transporter compliance framework.

     “In this regard, losses are minimized, thereby increasing farmer profitability and viability for improved livelihoods by 2025,” said Blessing Dhokotera, TIMB head of operations. “The framework seeks to counter criminal activities like side marketing, tobacco bale theft, bale swapping and forgery on stop order launching.”

    The TIMB also urged farmers to avoid plastic materials in packing or storing tobacco as they contaminate the tobacco leaf.

  • KT&G Expands in Indonesia

    KT&G Expands in Indonesia

    Photo: KT&G

    KT&G CEO Kyung-man Bang participated in groundbreaking ceremonies for the South Korean tobacco company’s second and third factories in Surabaya, Indonesia, on April 26.

    According to a company press release, Bang also visited KT&G’s Asia-Pacific headquarters in Jakarta during his trip, which was his first visit to an overseas business operation since assuming the top position at KT&G.

    Spanning approximately 190,000 square meters, KT&G’s second and third factories in Indonesia are set to commence operations in 2026. The combined production capacity of the factories is projected to reach 21 billion cigarette sticks per year. KT&G plans to make Indonesia its largest global production base, with an annual production capacity (including existing factory capacity) of 35 billion cigarettes, and focus on global market expansion.

    “We have been committed to delivering and accelerating our mid-[term] to long-term vision of becoming a global top-tier company by executing vigorous investment strategies and leading bold innovations,” said Bang during the ceremony.

    “Indonesia serves as our primary global export hub, driving the expansion of our export business in Asia-Pacific and the Middle East markets. We will continue to develop the global production hub in Indonesia as a core growth engine for the company,” Bang added.

    Last October, KT&G broke ground for a factory in Almaty Province, Kazakhstan, designed for exports across the Eurasian region. The following month, the company announced an expansion of its next-generation product capacity at its Daejeon factory.

    To accelerate its global expansion, KT&G recently separated its Asia-Pacific headquarters and Eurasia headquarters from the company, establishing them into separate business entities.