Category: Featured

  • Sweden Achieves ‘Smoke Free’ Status

    Sweden Achieves ‘Smoke Free’ Status

    Image: Summit Art Creations

    Sweden officially became “smoke free” on Nov. 13

    Health data released by Sweden’s public health agency show that just 4.5 percent of the nation’s Swedish-born adults smoke—below the globally recognized benchmark of 5 percent for smoke free status.

    At 24 percent, average smoking rates in Europe are five times higher than Sweden’s.

    According to tobacco harm reduction activists, the Swedes’ success is the result of their pioneering policy approach to safer alternatives to cigarettes.

    “This outstanding achievement marks a significant moment in global public health and stands as a testament to the progressive policies that have guided Sweden’s approach to tobacco control,” said Delon Human, leader of Smoke Free Sweden, in a statement.

    “In the early 1960s, nearly half of Swedish men smoked. By embracing and encouraging the use of alternative nicotine products such as snus, oral nicotine pouches and vapes, Sweden has paved a clear path to a smoke-free society while safeguarding public health.

    “They should serve as a beacon of hope for the rest of the world and as inspirational proof that a pragmatic, enlightened approach can deliver sensational public health gains and save lives.”

    By embracing and encouraging the use of alternative nicotine products such as snus, oral nicotine pouches and vapes, Sweden has paved a clear path to a smoke-free society while safeguarding public health.

    The new statistics show that 5.3 percent of all adults in Sweden, including immigrants, currently smoke. Remarkably, the data also reveals that people born elsewhere in Europe would be three times more likely to smoke if they had not moved to Sweden.

    “Key to Sweden’s success is its pragmatic focus on harm reduction rather than prohibition,” said Anders Milton, a physician and former president and CEO of the Swedish Medical Association.

    “A wide range of safer nicotine products, with a variety of strengths and flavors, is legally available both online and in stores, supported by advertising, which raises awareness and encourages uptake.

    “The Swedish government also applies a proportional excise tax, keeping smoke-free products more affordable than cigarettes. This tax policy, coupled with public education campaigns, has empowered Swedish consumers to make healthier choices and contributed to the country’s leading role in tobacco harm reduction.”

    As a result of its strategy, Sweden has the lowest percentage of tobacco-related diseases in the EU and a 41 percent lower incidence of cancer than other European countries.

    “While Sweden celebrates this historic achievement, most other nations remain far from reaching their smoke-free goals,” said Human. “Their rigid, prohibitionist policies limit access to safer nicotine alternatives, including oral nicotine products and e-cigarettes. These regressive measures are pushing smokers away from potentially life-saving tools and stalling progress toward reducing tobacco harm.

  • 22nd Century Net Loss Widens

    22nd Century Net Loss Widens

    Photo: crizzystudio

    22nd Century Group reported net revenues of $5.9 million for the quarter that ended Sept. 30, 2024, down from $7.9 in last year’s comparable quarter. Net loss increased to $3.6 million, compared with $2.2 million in the 2023 quarter.

    “Having joined this company just under a year ago, we have transitioned from a purely financial focus to the next phase of 22nd Century Group’s turnaround plans, which includes deploying our extensive asset base of manufacturing, brand, customer relationship and distribution resources to build a sustainable and self-funding growth business,” said Chairman and CEO Larry Firestone in a statement.  

    “While the third quarter results reflect the operational adjustments that I spoke to on our last report intended to address underperforming results in the filtered cigar business, we remain focused on our goal of EBITDA breakeven results in the first quarter of 2025. We expect that the changes in our core CMO business will drive revenue growth going forward at appropriate margin levels.

    “I am also excited to announce that we are now moving ahead on our plans to launch additional products, including VLN SKUs within key customer brand families, as part of our drive to expand the distribution of reduced nicotine content cigarettes manufactured by 22nd Century.

    “Adding VLN within other brand families is a straightforward way to reduce our time to market, increase consumer awareness and expand the VLN footprint. This is really the beginning for 22nd Century as the synchronicity between the CMO business and VLN is progressing as planned and is the foundation for our growth plans for 2025 and beyond.”

  • Net Sales up at Scandinavian Tobacco

    Net Sales up at Scandinavian Tobacco

    Image: STG

    Scandinavian Tobacco Group (STG) reported a 7.1 percent increase in net sales to DKK2.4 billion ($338.94 million) for the third quarter of 2024, with an EBITDA margin before special items at 23.4 percent. In a like-for-like comparison and excluding exchange rate developments, organic net sales decreased by 0.1 percent.

    Discontinuation of distribution of third-party nicotine pouches in the U.S. impacted growth negatively by 1 percent. Growth in the company’s machine-rolled cigars and smoking tobacco and next generation products (NGP) segment was partly offset by a decline in STG’s handmade cigars and accessories business.

    The NGP brand XQS increased 72 percent, though the absence of the distribution of nicotine pouches reduced category growth to 2 percent.

    The decrease in the EBITDA margin was a result of STG’s investment to support growth of our its NGP portfolio, the currently lower profitability in Mac Baren and the comparison to a strong third quarter 2023.

    With the acquisition of Mac Baren, we are in 2024 on track to surpass DKK9 billion in net sales for the first time ever.

    “With the acquisition of Mac Baren, we are in 2024 on track to surpass DKK9 billion in net sales for the first time ever and we expect the Mac Baren acquisition to deliver significant synergies as we implement the integration plan, said STG CEO Niels Frederiksen in a statement.

    “In the third quarter market share in machine-rolled cigars in Europe stabilized and began to improve and in particular France showed promising progress. XQS performed well in both Sweden and in U.K. as well as in Denmark where the brand has recently been introduced. The remainder of the growth enablers also delivered growth.

    “We remain committed to enhancing shareholder returns and we are about to complete our current share buyback, after which we will have returned almost DKK1.5 billion to shareholders over the course of 2024.”

  • UKVIA Forum Kicks Off

    UKVIA Forum Kicks Off

    The U.K. Vaping Industry Association’s (UKVIA) annual Industry Forum will take place at the London Marriott Hotel Regents Park on Friday, Nov. 15.

    The event will feature a program of timely panel discussions, including “Politics in the Spotlight”; “Closing the Trust Gap”; “Adding Consumers to the Conversation”; and “The Balancing Act,” which will explore the best route to further unlock vaping’s potential to improve harm reduction while also protecting young people.

    It will also include a panel discussion titled “Killing the Black Market, Not the Consumers,” which will look at how interventions such as a vape retailer and distributor licensing scheme could put a stop to rogue traders for good and bring about a new age of responsibility and accountability for the sector.

    “The industry has long been calling for stronger action against the unscrupulous sellers who flout the law and put young people, consumers and legitimate businesses at risk, and we were delighted to see the inclusion of licensing in the new government’s Tobacco and Vapes Bill,” said UKVIA Director General John Dunne in a statement.

    “Earlier this year, the UKVIA was involved in the development of a vape retailer and distributor licensing framework, which would prevent inappropriate businesses—including sweet shops—from ever selling these products, would bring into force stronger penalties for those breaking the rules and would generate upward of £50 million [$63.65 million] per year in self-sustaining funding, which could be used to empower Trading Standards.”

    This year’s UKVIA Forum will also feature a keynote on the “new era of enforcement” from Kate Pike, lead officer for vaping with the Chartered Trading Standards Institute, as well as a Q&A with Orla Menzies, the vaping policy lead for HMRC, and—for the first time—an onstage showcase where five companies will discuss how they are adapting their product offerings and leading on innovation across the sector.

  • Sophisticated Illegal Factory Dismantled in Spain

    Sophisticated Illegal Factory Dismantled in Spain

    Image: Paco Ayala

    Authorities dismantled a large a large counterfeit cigarette factory in Spain’s Malaga province, reports Sur.

    Guardia Civil officers confiscated 1,448 packs of counterfeit cigarettes from the facility, which operated 24 hours a day and distributed cigarettes throughout Spain. The illegal factory counterfeited four internationally known brands and had an estimated turnover of €4 million ($4.2 million) a month.

    Police were impressed by the operation’s level of sophistication. The facility was powered by a self-contained generator and stored 500 liters of fuel. To avoid detection, the factory operators had soundproofed the generator and made an exhaust pipe to expel the gases.

    In addition to the finished cigarettes, authorities confiscated a large amount of materials such as paper, filters and machinery, along with printing plates with the names of the commercial brands and packets ready to be assembled.

  • Quartz and PCA Launch Dubai Cigar Show

    Quartz and PCA Launch Dubai Cigar Show

    Quartz Business Events is partnering with the U.S. Premium Cigar Association (PCA) to launch a premium cigar-focused trade show for the international market. The newly created World Cigar Show will take place in Dubai from Nov. 11-12, 2025.

    “We are extremely excited to announce this partnership with the PCA. Perfectly located in Dubai, with the second busiest airport in the world, the World Cigar Show will allow exhibitors to meet a truly global audience,” said Dubai event director Colin Case in a statement.

    “Our team will assist Quartz as an advisor with the experience of putting together our annual trade show in the United States and marketing partner to our associate membership manufacturers. This partnership is an example of a win-win where both entities can complement one another’s specialties to create something unique,” said PCA President Scott Regina.

    The cigar market in Asia was valued at $2.4 billion in 2024 and is expected to grow by 6.8 percent by 2029.

  • Stakeholders Mark Start of Brazilian Tobacco Harvest

    Stakeholders Mark Start of Brazilian Tobacco Harvest

    Photo: SindiTabaco

    Public authorities and representatives of the tobacco supply chain celebrated the Sixth Official Opening Ceremony of the Tobacco Harvest at the Afubra Expoagro Park in Rio Pardo, Rio Grande do Sul, Brazil.

    Afubra President Marcilio Drescher said that, following the recent short crop (see “The Great Scramble”), the sector is anticipating a normal year in terms of quality and productivity. “However, the crop is marketed after harvest and we feel anxious and hopeful in expectation for a good price,” he added.

    SindiTabaco president Valmor Thesing stressed the economic significance of tobacco to the state, and the importance of the integrated tobacco production system. “The opening of the tobacco harvest is a joyful and rejoicing moment that emphasizes the relevance of the tobacco supply chain,” he said in a statement. “It is a century-old crop that generates income and employment, brings in foreign currency and generates taxes.”

    Rio Grande do Sul produces 43 percent of all tobacco in southern Brazil, which in the 2023-2024 growing season harvested 508 million kg. In Rio Grande do Sul alone, tobacco employs almost 70,000 farmers in approximately 200 municipalities.

    Clair Kuhn, secretary of agriculture, livestock, sustainable production and irrigation, highlighted the availability of new financial resources to help growers with irrigation. “Tobacco farmers have never had the chance to get resources from  the government. Now they have that opportunity,” said Kuhn. According to the secretary, 264 projects have already been approved, with an additional 400 undergoing evaluation.

  • Universal Reports Preliminary Results

    Universal Reports Preliminary Results

    Photo: Taco Tuinstra

    Universal Corp. reported preliminary unaudited financial results for the second quarter of fiscal year 2025. Sales and other operating revenue were $710.8 million, operating income was $70.7 million, and net income attributable to Universal Corp. was $27.6 million. Tobacco operations sales and other operating revenues amounted to $630.2 million while tobacco operations operating income totaled $79.3 million.

    “The Universal team delivered another quarter of solid results, driven by strong customer demand from our tobacco operations segment and larger, higher-quality and better-yielding crops in Africa. We believe our tobacco operations segment will continue its strong performance in the second half of our fiscal year,” said Universal Corp. chairman, President and CEO Preston D. Wigner in a statement.

    While presenting preliminary figures, Universal Corp. delayed the release of its second quarter 2025 earnings due to an internal investigation regarding certain allegations related to embezzlement by a former senior finance employee at the company’s Mozambique subsidiary, Mozambique Leaf Tobacco.

    The company has identified approximately $7 million of unauthorized payments during fiscal years 2022 through 2025. Universal Corp. said it intends to pursue sources of recovery, including company-maintained insurance. As of Nov. 12, the firm does not believe the matter under investigation will have a material negative impact on its financial results for fiscal year 2025.

    “Integrity is a core value of ours and a key to everything we do at Universal,” said Wigner. “We are committed to ensuring that this matter is handled appropriately, and we are working to complete this investigation as soon as practicable.”

  • Pyxus International Posts ‘Solid’ Quarter

    Pyxus International Posts ‘Solid’ Quarter

    Photo: AOI

    Pyxus International announced results for its fiscal quarter ended Sept. 30, 2024.

    “We are pleased to report a solid first half, establishing the necessary foundation to achieve strong full-year results,” said Pyxus President and CEO Pieter Sikkel in a statement.

    The company reported second-quarter sales and other operating revenues of $566.3 million compared to $624.3 million for the prior fiscal year’s second quarter. The change versus the prior year primarily reflects a shift in timing of certain shipments, a portion of which were accelerated into the company’s first quarter of the current fiscal year, with shipments being delayed out of the second quarter being expected to benefit second-half results.

    The 9.3 percent reduction in second-quarter revenue compared to the prior-year second quarter was the result of a volume decline of 23 percent, partially offset by a 14.5 percent improvement from pricing driven by cost increases.

    The company’s reported gross profit was $75.4 million in the second quarter compared to $88.7 million in the second quarter of fiscal 2024. This reduction was associated with the shipment of inventory purchased during El Nino market conditions in South America.

  • Study: Online Retailers Fail to Comply With Rules

    Study: Online Retailers Fail to Comply With Rules

    Eric Leas (Photo: University of California San Diego)

     Online e-cigarette retailers are not consistently adhering to laws aimed at preventing the sale of vaping products to minors, including regulations on age verification, shipping methods and flavor restrictions, report researchers at the Herbert Wertheim School of Public Health and Human Longevity Science at University of California San Diego.

    In a study published online on Nov. 11, 2024, in JAMA, researchers asked 16 people to purchase flavored vape products online and have them delivered to their homes in the County of San Diego, then analyzed the results of these attempted purchases. Of 156 attempted transactions 73 percent were processed and 67 percent were delivered.

    As of March 21, 2024, sale restrictions on flavored tobacco have been enacted in eight U.S. states and 392 cities or counties, but some of these do not cover e-commerce. For example, the 2022 California Senate Bill (SB) 793 prohibited the sale of flavored tobacco products but left e-commerce restrictions ambiguous.

    Due to the ambiguity in California law, the researchers aimed to test differences in compliance with local tobacco e-commerce ordinances. Eight buyers were from the City of San Diego, where an ordinance restricts the sale of flavored tobacco products, including online sales. The other eight were from other County of San Diego communities, which do not have the same restrictions. Delivery did not differ significantly between buyers in these two jurisdictions.

    In addition to violations of flavor restrictions, the online purchases violated the Preventing Online Sales of E-Cigarettes to Children Act, a federal law prohibiting the use of the United States Postal Service (USPS) to ship vaping products and requires both age verification and scanning identifications upon delivery.

    “There are longstanding surveillance systems in place that help implement laws at brick-and-mortar stores, but we do not have a system in place for online retailers,” said Eric Leas, an assistant professor at the Herbert Wertheim School of Public Health and Human Longevity Science, in a statement. “The results of this study highlight the need for greater oversight and enforcement of online tobacco retailers.”

    Key findings include:

    • 1 percent of buyers had their IDs scanned
    • 81 percent of deliveries were made via the USPS
    • 9 percent arrived via couriers with policies restricting shipping tobacco, including 4 percent via UPS, 3 percent via FedEx 3.0 percent and 1.8 percent via DHL
    • 78 percent of buyers reported no interaction with delivery personnel
    • 15 percent of buyers spoke with delivery personnel but did not have their IDs checked
    • 6 percent of buyers had their IDs checked but not scanned

    “Online sales of e-cigarettes are the largest and fastest growing sector of the tobacco. We need to evaluate tobacco retail policies and ensure they cover e-commerce and monitor the market to improve implementation,” said Leas, who is also director of the Tobacco E-commerce Lab.

    In a 2023 study published in Tobacco Control, Leas reported that following the implementation of SB-793, online shopping queries were 194 percent higher than expected for cigarettes and 162 percent higher than expected for vape products.

    As a result, to strengthen state tobacco oversight programs, including online sales of flavored tobacco products, California lawmakers recently approved SB-1230, citing Leas’ Tobacco Control study. The law will go into effect on Jan. 1, 2025.

    “This research is piloting a system for monitoring online compliance that local health departments could mimic as a routine surveillance system to strengthen the implementation of public health laws designed to reduce the sale of tobacco products to minors,” said Leas.