Category: Featured

  • Minneapolis Mulls $15 Minimum Pack Price

    Minneapolis Mulls $15 Minimum Pack Price

    Credit: Nikolay

    The Minneapolis City Council in Minnesota is considering adding new rules and restrictions on sales of tobacco products, including a minimum price for cigarettes and other products that could be the highest in the nation.

    The changes under consideration include a minimum price of $15 per pack of cigarettes or package of four or more cigars, or for certain-size packages of snuff or snus, according to media reports.

    The changes to the city’s existing tobacco products ordinance also would bar price discounts or coupons for tobacco products, and — starting Dec. 1 — ban free samples of tobacco products, and ban smoking of “samples” inside any retail establishment licensed to sell tobacco products.

    The changes would also increase the penalties for businesses that violate the ordinance — including moving from a $200 fine to a $500 fine for a first violation.

  • U.S. Market Poised for Disruption

    U.S. Market Poised for Disruption

    Photo: vfhnb12

    The American tobacco market is poised for disruption as Altria Group’s exclusive U.S. distribution rights to Philip Morris International’s IQOS heat-not-burn product expires on April 30, reports The Wall Street Journal. After this date, PMI will be free to compete in the U.S. with its top noncigarette brand.

    PMI hopes IQOS can help it grab a 10 percent share of the lucrative U.S. cigarette and heated-tobacco market by roughly 2030, representing an additional $2.2 billion in annual earnings before interest, taxes, depreciation and amortization, according to Stifel analysts.

    Altria, with its 50 percent share of the American cigarette market, has a lot to lose if PMI can persuade more smokers to switch to noncombustible alternatives.

    In recent years, U.S. smokers have become more receptive to alternative nicotine delivery methods. Last year, 40 percent of all nicotine products sold in the U.S. were smoke-free offerings such as e-cigarettes and oral nicotine pouches. The share of traditional cigarettes, meanwhile, declined to 60 percent last year from 80 percent in 2018.

    If the trend continues, Americans will be more likely to reach for a vape or nicotine pouch than a cigarette within three years.

    Already earning some 40 percent of its net revenue from smoke-free products, PMI needs not worry about the dwindling number of U.S. smokers because it doesn’t sell cigarettes in America.

    Altria, by contrast, still relies heavily on combustible cigarettes, which currently account for 85 percent of its sales. Its comparatively low exposure to the smokefree market includes brands such as On! oral nicotine pouches and Njoy e-cigarettes. The company also has a joint venture with Japan Tobacco to launch Ploom heated tobacco sticks in the U.S. and is working on its own heat-not-burn brand.

    A badly timed bet on Juul Labs saddled the company with a $12.5 billion loss.

    On the flipside, Altria has a strong U.S. distribution network, which it can leverage to promote its brands—a considerable advantage as the point of sale is one of the few places where tobacco companies are still allowed to advertise their products.

    Altria can also harness data to defend its patch. The tobacco giant is integrated into many retailers’ loyalty programs, allowing it to monitor what shoppers are buying.

  • New KT&G CEO Engages Employees

    New KT&G CEO Engages Employees

    On the April 17, KT&G President Bang Kyung-Man (third from the left) held a casual meeting with employees to kickstart his focus on communication management. (Photo: KT&G)

    Three weeks after his inauguration, KT&G’s newly appointed president, Bang Kyung-man, engaged in a casual meetings with employees to demonstrate his commitment to robust communication.

    The event was held on the 20th floor of KT&G’s Seoul headquarters, and attended by about 20 employees from various jobs and ranks.

    Bang shared his personal growth story, from joining KT&G as a new recruit in 1998 to taking on the role of CEO 27 years later. In addition to sharing his insights as a company senior, he sought employees’ opinions on the company’s mid- to long-term vision and growth strategies.

    Following his appointment as CEO on March 28, Bang immediately visited KT&G’s Chungnam Headquarters and Seo Daejeon Branch, emphasizing communication with the sales team on the ground.

    “This event was organized to reflect the management’s desire to communicate freely with team members, breaking away from traditional formats and fostering consensus on the company’s vision,” KT&G wrote on its website. “We will continue to promote a culture of bidirectional communication among staff to develop a more horizontal and flexible organizational culture.”

  • Sullivan and Mish Resign From 22nd Century Group’s Board

    Sullivan and Mish Resign From 22nd Century Group’s Board

    Photo: Charnchai saeheng

    Nora Sullivan and James Mish have resigned as a directors of 22nd Century Group. In a press note, the company said it does not intend to fill the vacated seats and will instead reduce the board to four seats as part of its focus on corporate cost efficiency.

    “We thank Nora and Jim for their service to the company over the years,” said 22nd Century Group Chairman and CEO Larry Firestone.

    “We plan to reduce the size of the board in 2024, in addition to the previously announced reduction in board compensation, consistent with our efforts to achieve breakeven operations. In total, these changes to our board are expected to save more than $1 million annually.”

  • PMI Urges Action Against Illicit Trade

    PMI Urges Action Against Illicit Trade

    Photo: alexlmx

    Philip Morris Pakistan Limited (PMPKL) has urged action against the growing presence of tax-avoiding products on the country’s tobacco market, reports  The Express Tribune

    In a media briefing, PMPKL Head of Communications Andleeb Uroos Ahmed said the company’s income had plunged by 86 percent in 2023. He attributed the decline to last year’s hike in Federal Excise Duty (FED), which doubled cigarette prices, and the subsequent escalation in market share of illicit products.

    This condition has provided an ample opportunity for numerous local illicit cigarette manufacturers, notably in Khyber Pakhtunkhwa and Azad Jammu & Kashmir, to amass substantial market share while contributing minimally to national revenue, according to critics of the tax hike.

    Illicit cigarettes now command a 63 percent market share, causing the exchequer to miss out on  PKR310 billion ($1.11 billion) in tax collections annually.

    While acknowledging government efforts such as the introduction of tax stamps, Ahmed expressed concern about lax enforcement.

    Stressing the interests of tax-paying companies and government’s need for sustainable revenue, she suggested including tax-evading cigarette manufacturers in the tax net instead of burdening the legitimate industry with additional taxes.

    By curtailing tax evasion, she calculated, the Federal Board of Revenue (FBR) can potentially boost revenue collection from the tobacco sector by more than $2 billion.

    “The potential revenue, if realized, could significantly contribute to human development projects and public health initiatives in Pakistan, addressing critical areas where the country lags in human development rankings,” she added.

    She said that anti-tobacco organizations have been misguiding the government by spreading misinformation about the revenue collection potential from the legitimate tobacco industry.

  • Momentum Grows for One-Use Vape Ban: Philippines

    Momentum Grows for One-Use Vape Ban: Philippines

    Photo: Mihail Reschetnikov

    Momentum is building in the Philippines for a proposal by Finance Secretary Ralph Recto to ban disposable e-cigarettes, reports The Philippine Star.

    The Department of Health has indicated support for the proposal, just like some senators, but the Department of Trade and Industry, which enforces the country’s vape law, has yet to take a stand.

    Eric Singson, mayor of Candon in the tobacco-producing Ilocos Sur province in Northern Luzon, said he was open to the idea. “If it is really hazardous to a person’s health, then it’s OK with me, we will subscribe to regulation, just like the Tobacco Regulation Act,” he said.

    Both the Department of Agriculture and National Tobacco Administration have yet to communicate their respective positions.

    Several countries in Europe including the United Kingdom, Ireland and Belgium have announced disposable vape bans.

    “If that is the trend, then maybe there is a very good reason for banning it. If it’s something of a health concern to the users, especially the minors, then I’m open to it,” Singson told The Philippine Star in an interview in.

    In Asia, disposable vapes are already banned in Singapore, Thailand and Taiwan.

    Recto proposed the ban in response to the rise in youth vaping and the impact of disposable products on the environment, with illicit e-cigarettes further eroding tax revenues.

  • Healthcare Providers Urged to Discuss Vapes

    Healthcare Providers Urged to Discuss Vapes

    Tracy Smith and Benjamin Toll have co-authored a commentary suggesting that health care providers providers talk with adult patients who smoke about the relative risks of different tobacco products, including e-cigarettes.
    (Photo: MUSC Hollings Cancer Center)

    Healthcare providers who are working with adult patients struggling to stop smoking should consider discussing e-cigarettes as a potential tool if they’ve already tried FDA-approved medications, say tobacco researchers with MUSC Hollings Cancer Center.

    Benjamin Toll, director of the MUSC Health Tobacco Treatment Program, and Tracy Smith, associate professor in the Addiction Sciences Division of the Department of Psychiatry and Behavioral Sciences, partnered with Brian King, director of the Center for Tobacco Products at the U.S. Food and Drug Administration, to write a commentary in Nature Medicine that lays out the relative risk of e-cigarettes compared with traditional combustible cigarettes. Existing scientific evidence indicates that both products have health risks, but that e-cigarettes generally have lower risks than cigarettes.

    To be clear—neither option is good for your health, Toll and Smith said. And they certainly don’t want any youth, or adults who don’t smoke, to take up e-cigarette use. But among adults who have already tried FDA-approved cessation medicines, if the choice is between continuing to smoke traditional cigarettes or switching completely to e-cigarettes, then a complete switch should be encouraged, they said. They were motivated to work with King to write this commentary because they saw confusion among the general public and doctors about the relative harms of each product.

    “It really bothered me that there are well-intentioned, smart healthcare providers who think that e-cigarettes are worse than smoking cigarettes,” Toll said in a statement. “It’s simply not true.”

    Toll, who is currently serving as president of the Society for Research on Nicotine and Tobacco, wanted to expand the conversation that health care providers can have with patients about ways to stop smoking.

    There are seven FDA-approved smoking cessation aids, including medication and nicotine replacement options like the patch. These smoking cessation products, especially when combined with behavioral counseling, improve a person’s chances of quitting smoking. But because nicotine is so addictive, many people still struggle. That’s where Smith and Toll see a place for e-cigarettes.

    “Doctors and other health care professionals don’t know what to say or how to talk about it,” Smith said. “I always say, ‘If you have somebody who smokes cigarettes, they are standing in a convenience store every single day, buying the most harmful tobacco product they could possibly be buying.’ And it’s a real injustice not to say to them, ‘Hey, there are nicotine products you could buy every day that would be a whole lot less likely to kill you.’”

    However, Toll and Smith are very specific about which types of e-cigarettes they’re referring to. When they say that e-cigarettes have fewer toxicants and cause less harm than cigarettes, they’re referring specifically to the 23 products that have received FDA authorization for marketing.  It’s worth noting that all 23 of these products are tobacco-flavored, not fruity, chocolatey or candy-flavored.

    Smith explained that the FDA created two paths for e-cigarette manufacturers to gain authorization. The first path would allow manufacturers to market their e-cigarettes as smoking cessation devices.

    “Thus far, no company has done that—as far as we know, they have not even applied,” Smith said.

    The second path allows companies to market their products as tobacco products, but makes no claims about smoking cessation. Companies have to show that their products are appropriate for the protection of public health – specifically, that the benefits of the product for helping adults who smoke to transition completely outweighs the known risk of these products to youth and nonusers.

    Besides the likelihood that the product will entice young people, the FDA looks at everything from environmental impact to whether users completely switch to the e-cigarette product from cigarettes. Complete switching, rather than going back and forth between e-cigarettes and cigarettes, is an important factor. If people use both products – something that researchers call “dual use” – then they’re still exposing themselves to the carcinogens and toxicants in cigarettes.

    “So far, the FDA has issued more than a million denials and 23 authorizations,” Smith said.

    Due to the rigorous nature of the reviews, Smith and Toll believe that doctors can reasonably share that list of 23 authorized e-cigarettes with people who are struggling to stop smoking.

    In addition, there’s increasing evidence suggesting that e-cigarettes can help adults who smoke to completely transition away from cigarettes, they said. Recent large-scale studies published in JAMA Internal Medicine and the New England Journal of Medicine showed that e-cigarettes helped people to stop smoking. Further, Smith said, a Cochrane Review conducted earlier this year concluded that there is evidence from enough high-quality studies to say that e-cigarettes are more likely to help people to quit than nicotine replacement therapy, which includes nicotine gum, nicotine lozenges and the patch.

    E-cigarettes remain controversial though.

    “Some believe that we shouldn’t be allowing new tobacco products on the market that could potentially be appealing to youth, no matter what the benefit is to adults who smoke. And I’m just not in that camp because cigarettes are the primary way that tobacco kills people,” Smith said. “For me, because cigarettes are responsible for the vast majority of the deaths and illnesses from tobacco, I think that having less harmful alternatives out there for adults, especially if we can reduce the appeal to youth, is really important.”

  • Vape Shops Challenge Kentucky Registry Bill

    Vape Shops Challenge Kentucky Registry Bill

    Credit: Adobe

    Several vape businesses, as well as the Kentucky Hemp Association and Kentucky Vaping Retailers Association, are suing the state government over House Bill 11, which will restrict vape sales starting in 2025.

    Among other policy changes, HB 11 will bar businesses from selling vapes that are either not authorized by the U.S. Food and Drug Administration or are not currently under review by the regulatory agency.

    During public debates, various arguments for and against HB 11 were made before the Legislature passed the law in late March.

    But the vape shops’ lawsuit, filed last week in Franklin Circuit Court, challenges the legislation on constitutional grounds, according to media reports.

    The lawsuit zeroes in on HB 11’s reliance on defining a “vapor product” in a way that includes devices that feature “vaporized nicotine or other substances.”

    The shops’ petition says this definition encompasses not only nicotine vapes but also hemp-derived vaping products they currently sell. And it says the definition is broad enough to apply to medical cannabis vaping products that will become legal in Kentucky next year.

    The lawsuit argues this makes the new law unconstitutional for two reasons.

    First, it claims HB 11 violates a provision in the Kentucky Constitution that says the Legislature can’t pass a law that relates to more than one subject, and that subject must be specified in its title.

    The plaintiffs say HB 11 is titled an “act relating to nicotine products” but actually affects non-nicotine products as well. They argue this effectively violates the constitutional rule.

    Second, the lawsuit says hemp-derived vapes generally aren’t regulated by the FDA, which makes it impossible for businesses to comply with HB 11’s requirement that they only sell vapes that have received or are seeking FDA approval.

    The suit argues this violates a due process clause in the U.S. Constitution and makes HB 11 an “arbitrary” law, which is prohibited by the Kentucky Constitution.

  • Smokers Ordered to Keep Their Distance

    Smokers Ordered to Keep Their Distance

    Photo: aerogondo

    The Italian city of Turin has banned outdoor smoking and vaping unless other people are a least five meters away, reports Reuters.

    The ban covers cigarettes, cigars, pipes, heated tobacco products and vapes, according to a resolution approved by the city council on April 15.

    In 2021, Milan prohibited it at bus stops, taxi ranks, stadiums, parks and cemeteries.

    However, the anti-smoking laws tend not to be enforced strictly. In Milan, only seven fines were issued in the first four months of their application, according to Corriere della Sera.

    Vaping consumer advocates derided Turin’s decision to equate vaping with smoking.

    “There is no scientific basis for ‘passive vaping,’ making an outdoor vaping ban for public health reasons completely illogical,” said Michael Landl, director of the World Vapers’ Alliance, in a statement.

    “Equating vaping with smoking only perpetuates the false perception that they carry similar risks, discouraging smokers from switching to a less harmful alternative. Furthermore, how would such a 5-metre rule even be enforced? This is nothing more than a poorly conceived publicity stunt by the council, one that could have serious negative consequences.”

  • Former BAT Company Does Ruble-Yuan Swaps

    Former BAT Company Does Ruble-Yuan Swaps

    Photo: mtrommer

    I.T.M.S. entered into ruble-yuan currency swaps in 2023 to generate interest income, reports Interfax.

    Income from the purchase and sale of currency under swap transactions reached RUB2.56 billion ($27.23 million) last year, with a loss of RUB1.654 billion rubles, the company wrote in its annual report.

    The Bank of Russia launched a new permanent instrument for the provision of yuan in January 2023. In March 2024, the Central Bank announced that at the beginning and end of each month it would temporarily double the maximum limit on transactions for currency swap transactions.

    On the first two and last two trading business days of each month, the maximum daily transaction volume would be RMB20 billion, with the limit on other trading remaining at RMB10 billion.

    I.T.M.S. comprises British American Tobacco’s former Russian assets, which the multinational sold to a consortium led by local management after Russia invaded Ukraine.

    Russia has been partially cut off from the Western financial system due to war-related sanctions. In response, Moscow has been strengthening ties with China and boosting its own systems.