Category: Featured

Illicit Trade Hurts PTC’s Sales

Image: Ali Sher
Competition from illicit tobacco products caused Pakistan Tobacco Co.’s (PTC) sales to drop by 11.26 percent in the first quarter of the current fiscal year as compared to 2023-2024.
“The legitimate tobacco industry in Pakistan faces continued challenges as illicit cigarette sales have reached alarming levels,” PTC’s senior regulatory affairs manager, Qasim Tariq, was quoted as saying by the Associated Press of Pakistan.
During the period under review, PTC sold 6.3 billion cigarettes, against 7.1 billion in the comparable 2023 quarter.
PTC is not the only organization impacted by illicit trade. In a recent statement to the Senate Standing Committee, the Federal Board of Revenue (FBR) revealed that 50 percent of cigarettes were being sold in Pakistan illegally, causing the government to miss out on much-needed tax revenue.
Tariq attributes the problem, in part, to excessive tobacco taxation levels. In February 2023, the government increased the Federal Excise Duty by more than 150 percent, driving many smokers to purchase their tobacco on the black market instead. “As a result, there is an estimated PKR300 billion loss to government revenue which is essential for public services, infrastructure and economic development initiatives,” he remarked.
While commending the FBR for its enforcement efforts against illicit tobacco trade, Tariq emphasized that isolated measures would not be enough to address the problem. He believes that the market for illicit products remains strong due the FBR’s limited resources and inconsistent enforcement at the retail level.
“PTC strongly advocates for the full and consistent implementation of a track-and-trace system in all regions, including Azad Jammu and Kashmir, to enable authorities to identify and monitor products, reduce tax evasion and ensure only legitimate products reach consumers,” he said.
November 13, 2024
Juul Labs Appoints MD

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Wisdom comes from the Stonegate Group, where she served as chief commercial officer. Prior to that, she also served as a commercial director at Diageo and held senior positions at prominent national and global brands.
In her new role, Wisdom will oversee all Juul Labs U.K. commercial activities as the company seeks to bring its next-generation product technology to more parts of the world.
“Joining Juul Labs as its new managing director is an exciting opportunity to contribute to the company’s bold vision for the future—one where long-term success is achieved through responsible innovation and investment in high-quality, scientifically supported products,” said Wisdom in a statement.
“I look forward to advancing Juul’s commercial objectives across this rapidly changing industry to ensure we are delivering the best possible alternatives for adult smokers whilst taking serious action to prevent underage access to and appeal of our products.”
“We are thrilled to welcome Melissa Wisdom as Juul Labs’ new managing director,” said Juul Labs CEO K.C. Crosthwaite. “Melissa’s extensive commercial experience and her commitment to responsible growth in consumer markets make her an invaluable addition to the team.
“With new U.K. legislation coming down the track and the regulatory environment evolving in many markets, Melissa’s leadership will play a pivotal role in advancing our efforts to drive tobacco harm reduction by offering adult smokers high-quality product technology designed specifically to help them move away from traditional cigarettes.
“I am confident that Melissa will be a huge asset at this exciting time of opportunity for the company.”
November 13, 2024
‘Switchers’ See Improved Respiratory Health

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People who switch from smoking to vaping see improved respiratory health, but people who begin consuming electronic cigarettes while continuing to smoke regular cigarettes do not report improved respiratory symptoms, according to a new paper in Nicotine and Tobacco Research, published by Oxford University Press.
Adults increasingly use electronic cigarettes to try to quit smoking because of the perceived reduced risk. But while vaping reduces exposure to toxic chemicals, it has been unclear whether switching from cigarettes to e-cigarettes results in a reduction of the respiratory problems—like wheezing and coughing—common in regular cigarette smokers.
Researchers used data from the Population Assessment of Tobacco and Health (PATH) study, a national longitudinal measure of tobacco use in the United States performed by the National Institutes of Health. The investigators here observed adult participants between 2013 and 2019 who reported smoking cigarettes exclusively at the beginning of the investigation and reported a baseline cough or wheeze.
The researchers divided the subjects into four groups: those who transitioned from exclusive cigarette smoking to quitting nicotine altogether, those who switched from cigarette smoking to vaping exclusively, those who continued to smoke cigarettes only, and those who kept smoking and also began vaping.
Completely switching from cigarettes to e-cigarettes led to a moderate increase in the resolution of wheeze symptoms compared with persistent smoking. However, there were lower rates of respiratory symptom resolution among those transitioning to vaping while maintaining or increasing their smoking.
Among 5,210 subjects with a baseline cough, 3,362 (65 percent) saw their coughs go away. Of the 5,367 people who reported a baseline wheeze, the researchers observed that 2,862 (53 percent) saw improvements. Switching from cigarettes to e-cigarettes exclusively resulted in significantly reduced wheezing but not cough resolution. Transitioning to both smoking and vaping (versus just continuing to smoke cigarettes) was not associated with respiratory improvement overall or even among participants who reduced their cigarette smoking intensity.
The researchers note that the rates of symptom resolution were 14 percent lower (for cough) and 15 percent lower (for wheeze) among those who switched to dual use and maintained or increased their smoking intensity; those who started using electronic cigarettes while continuing to smoke the same number of regular cigarettes saw their wheeze and coughing get worse.
Switching from smoking cigarettes to quitting nicotine altogether was, perhaps unsurprisingly, associated with the best improvements in both coughs and wheezing.
November 12, 2024
Ispire Net Loss Widens to $5.6 Million

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Ispire Technology reported revenue of $39.3 million for the first quarter of 2025, down from $42.9 million in the comparable 2024 quarter. Gross profit increased 13.2 percent to $7.7 million. Net loss was $5.6 million as compared to net loss of $1.3 million in the fiscal first quarter of 2024.
“Our results from the fiscal first quarter of 2025 reflect our commitment to our growth strategy of becoming the leading innovative vaping technology and precision dosing solutions company worldwide,” said Inspire Co-CEO Michael Wang in a statement.
“While our financial results were slightly impacted due to the strategic shifts we have made in our U.S. business to focus on high-quality customers and to improve payment terms and gross profit, I am pleased with our team’s overall performance given the challenging macroeconomic environment and look forward to the remainder of fiscal 2025 and the opportunities that lay ahead.”
According to Wang, Ispire continues to make progress with its point-of-use age gating technology. He also expressed excitement about the recent expansion of Ispire’s global reach through a five-year master distributor agreement with ANDS for the Middle East and North Affrica region and global duty-free markets
“The results from our fiscal first quarter were in line with our internal projections as we shifted our U.S. strategy while we also had a few delayed shipments which impacted our quarterly results,” said Ispire Chief Financial Officer Jim McCormick.
“As we head into the remainder of fiscal 2025, we are confident that we are well-positioned to continue delivering value to our shareholders as we advance our mission of becoming a global leading provider of innovative vaping technology and precision dosing solutions.”
November 12, 2024
Boredom, Relaxation Top Drivers of Teen Vaping

Boredom, relaxation and experimentation are the key drivers of teen vaping, according to new research from University of Michigan (U-M).
Published in Pediatrics, the study “Reasons for Vaping Among U.S. Adolescents” examined data from in-school surveys of U.S. students in eighth, 10th and 12th grades.
“Vaping has become the primary way that adolescents use nicotine,” said author Megan Patrick of U-M’s Institute for Social Research. “Understanding why adolescents vape is important for figuring out how to reduce and prevent nicotine use among teenagers.”
Of the 5,082 respondents, data showed relaxation was the most common reason cited, no matter the grade or frequency of vaping. Boredom landed in the top three reasons across frequency groups as well.
Among 12th graders who reported vaping near-daily, a third said they vaped to feel good or because it is more convenient than cigarettes. Less than 10 percent of that same group said vaping helped them quit smoking cigarettes.
Near-daily vaping in the past 30 days was reported by 1.7 percent of eighth graders, 4.2 percent of 10th graders and 7.8 percent of 12th graders. “Relaxation” emerged as the top reason for vaping, cited by nearly half of adolescents who vaped in the past year and over 70 percent of near-daily vapers.
The study stresses the importance of understanding the diverse reasons behind teen vaping, particularly the significant role of stress relief. Given that a large proportion of near-daily vapers use vaping to relax, incorporating mental health support into prevention programs is crucial.
“Our findings illustrate a shift over the past decade in the reasons adolescents vape, moving from experimentation to stress relief and relaxation, highlighting key areas for intervention,” Patrick said.
Other frequently mentioned reasons include “experimentation” and “boredom,” with “taste” also ranking high. Among near-daily vapers, significant numbers noted they vaped to “feel good” or because it is “more convenient than cigarettes,” with a smaller percentage aiming to “help quit cigarettes.”
“Among the adolescents who vape near-daily, 43 percent report that they vape because they are hooked or have to have it,” Patrick said. “The fact that so many adolescents feel addicted to nicotine is concerning. Another reason, reported by almost one in five near-daily vapers, was to manage their weight. Additional research is needed on this, but parents and health care professionals should be aware that many adolescents are vaping to try to lose weight or control their weight.”
The authors of the study argue that screening for stress and anxiety should be conducted alongside nicotine screenings to provide early intervention. These experts also noted a shift in why adolescents are vaping, as 2015 data listed relaxation as only the fifth most common reason.
They argue further research is needed to understand those adolescents vaping for weight management—reported by nearly a fifth of 12th graders who vaped near-daily.
The research was funded by the National Institute on Alcohol Abuse and Alcoholism and the National Institute on Drug Abuse.
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November 12, 2024
Ondato Launches Age-Verification System

Image: Ondato
Ondato has launched a reusable age-verification solution, called OnAge.
The technology is designed to streamline age-restricted access and ensure user anonymity for digital platforms. Combining AI device recognition with biometric algorithms, the system enables companies to determine the ages of their users with 98.7 percent to 100 percent accuracy and use the results of the verification for subsequent visits, eliminating friction in granting users repeat access, according to Ondato.
Because the system retains only the user’s age eligibility status after verification, it complies with the strictest privacy and security standards. In addition, OnAge can be implemented into any website or app without requiring additional downloads from users.
“We’re excited to launch OnAge as a response to both regulatory needs and user demands for a more seamless, secure age-verification solution,” said Liudas Kanapienis, CEO and co-founder of Ondato.
“Our OnAge solution combines cutting-edge AI and biometric technology to ensure age compliance in a way that doesn’t compromise user experience or data privacy while keeping verification costs lower than other similar solutions. By introducing reusable verification, we’re making it easier for companies to protect minors while offering users a smoother, faster process.”
One of the advantages of OnAge is reusable verification, which allows businesses to save costs and spares customers the hassle of repeated verification each time they want to access restricted content or services.
After verifying their age once, users can create a four-digit PIN to access age-restricted content for a specified period, as set by the platform.
November 12, 2024
Top Court Strikes Down Vape Import Ban

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Mexico’s ban on imports of e-cigarettes and related products is unconstitutional, the nation’s top court ruled, reports Meganoticias.
The First Chamber of the Supreme Court of Justice of the Nation determined that the prohibition imposes excessive restrictions on commercial freedom of Philip Morris Mexico.
The ruling is limited to Philip Morris Mexico and does not affect similar products that could be brought to market in the future.
It protects Philip Morris Mexico from future restrictions and sets a legal precedent that could influence future litigation. The judgment specifies that this protection will be maintained until the government amends its General Import and Export Taxation Act.
According to the Mexican government, an estimated 938,000 teenagers have tried electronic nicotine delivery systems, and about 160,000 use them regularly
Despite the import ban, vaping has spread rapidly. In 2023, there were an estimated 2.1 million e-cigarette users in Mexico, compared with 975,000 in 2019.
The Philip Morris Mexico case stems from an October 2022 Supreme Court ruling that deemed some prohibitions on ENDS unconstitutional and allowed certain groups to apply for permission to continue the import and sale of these products.
November 11, 2024
KT&G Rejects Offer for Ginseng Business

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KT&G rejected an offer by Flashlight Capital Services (FCP) to purchase its ginseng business, reports Business Korea.
On Nov. 8, KT&G sent a response to FCP’s letter of intent. “We will do our best to foster the three core businesses, including health functional foods,” it stated.
“Last year, we announced a mid-to-long-term growth strategy to foster health functional foods along with overseas cigarettes and NGP [next-generation products] as our three core businesses, and we will do our best to achieve these goals,” a KT&G official emphasized.
On Oct. 14, KT&G also issued a statement dismissing FCP’s acquisition proposal, stating, “FCP’s acquisition proposal was unilaterally disclosed without any discussion with us.”
In its letter of intent, FCP offered to acquire all KGC’s shares for nearly KRW2 trillion ($1.47 billion), which represents a 50 percent premium over the enterprise value mentioned by some analysts during KT&G’s 2023 investor day.
Industry insiders believe the likelihood of the transaction being completed is low, given KT&G’s shareholding structure.
November 11, 2024
Chandrasiri Joins Ceylon Tobacco Board

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BAT subsidiary Ceylon Tobacco Co. has appointed Samanmalee Chandrasiri as a non-executive director to its board, reports EconomyNext.
A globally experienced professional with nearly two decades of expertise in human resources, Chandrasiri started her career in 2006 with HR business partnering roles at BAT Sri Lanka.
As BAT South Asia area head of talent, she managed talent strategies across Pakistan, Bangladesh, and Sri Lanka. This led to her position as organization effectiveness advisor in BAT Indonesia.
She served as HR director for BAT Sri Lanka and for Malaysia and Singapore.
She assumed duties as group head of organization effectiveness and talent management in July 2019, operating from London.
Chandrasiri served as group head of HR for global marketing, scientific research and development before taking the role of group head of talent, organization effectiveness and inclusion (London), where she led the global center of expertise on talent, organization effectiveness, diversity and inclusion
In October 2024, she stepped into her current role as group head of HR and inclusion—global operations and R&D.

November 11, 2024
Tax Hike Boosts ‘Tobacco Tourism’

Image: Antony McAulay
A recent tobacco tax hike in the Netherlands has boosted tobacco tourism to Luxembourg, reports The Luxembourg Times.
Dutch smokers have been chartering buses to stock up on cigarettes in the Grand Duchy, where cigarettes are considerable cheaper than in surrounding countries.
For regular smokers, a trip to Luxembourg can be very profitable. Passengers on one such bus said the journey, which takes six hours one way, costs around €40 per person and allowed them to save between €400 and €500 on cigarette purchases in just one trip.
The Netherlands allows smokers to bring up to four cartons of cigarettes from one EU country.
According to De Telegraaf, the tax-fueled increase in demand has led to the bus operator to expand its schedule.
Luxembourg is not the only country attracting tobacco tourists. A few months ago, Le Parisien reported on a similar excursion from the Toulouse region to Andorra, where taxes on tobacco and alcohol are much lower than in France.
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November 11, 2024