The violations involve products sold under the Elf Bar/EB Design/EB Create, Funky Republic, Lost Mary brands.
The U.S. Food and Drug Administration has warned five more online retailers for selling flavored disposable vaping products.
On Feb. 28, the regulatory agency announced that the warning letters cite the sale of disposable e-cigarette products marketed under popular brand names such as Elf Bar/EB Design/EB Create, Funky Republic, Lost Mary, Hyde, Breeze and Cali Bars, according to a press release.
“Protecting our nation’s youth from the harms of tobacco products is crucial to our center’s public health mission,” said Brian King, director of the FDA’s Center for Tobacco Products in a statement. “We’re committed to continuing to use a data-driven approach to identify and prevent the sale of unauthorized tobacco products and to take compliance and enforcement action when appropriate.”
Ana Isel Mederos Cano (Photos Special to Tobacco Reporter)
Activities during the 2024 Habanos Festival usually only vary slightly. However, this year, attendees were allowed to roll a cigar alongside professional rollers at one of five factories. It marked the first time the festival hosted its master rolling class in the same buildings where Habanos cigars are produced.
Daymi Difurniao Rodríguez, communications and marketing specialist for Habanos, said that the venue change was to allow more attendees to learn firsthand about the “Totally by Hand” production process of a Habano.
“I wanted the press to make their own Habano so they could understand the details and intricacies involved in creating the Habanos, the world’s finest cigars,” she said.
The torcedor (cigar roller) who taught the El Laguito class was Ana Isel Mederos Cano, main quality specialist at El Laguito. She is also a nominee for the Habano Woman of the Year award in the production category for the XXIV Habano Festival currently taking place in Havana.
She has been at El Laguito for 25 years, 11 of them as a roller and the past 14 in her current position.
“I love that I have been given this opportunity to teach the art of cigar rolling to the representatives of media from around the world,” she told Tobacco Reporter.
The venue change was a welcome addition, according to several festival attendees. A seasoned festival media participant, Nicholas Syris of LH Cigars and several cigar podcasts, who also rolled at El Laguito, said the personal attention from the professional rollers helped festival goers learn the challenging art of rolling cigars better than in a large conference room setting.
“It was really good. It was a nice addition to the festival,” he said. “I would say many more people rolled a smokable cigar than previous editions of the festival.”
Visitors had the opportunity to visit La Corona, Partagás, H. Upmann and Carlos Baliño. El Laguito was for media only.
La Corona has about 750 employees, 300 of which are dedicated rollers. The rollers produce brands such as Hoyo de Monterrey, Montecristo, Cuaba, Diplomaticos and San Cristobal de la Habana.
At the H. Upmann Factory, H. Upmann, Montecristo, and Romeo y Julieta, and sometimes several sizes of Cohiba are produced. Partagas is one of Havana’s iconic factories and Carlos Baliño is the former El Rey del Mundo factory.
Tobacco Reporter was only permitted to attend El Laguito, the legendary home where many of Habanos’ premier marcas are produced.
Festival roller trainees were given a wooden board to roll, a “chaveta” tobacco leaf cutting blade, some vegetable glue, and an apron. Several factory rollers made rounds around the room helping festival attendees roll their cigars.
“I love this new idea,” said Brooks Whittington with Halfwheel, a major industry cigar information website. “While the rolling competition has always been a favorite part of the festival for me, getting to roll the cigars at the actual factory we were visiting took the experience to the next level.”
Many other attendees said they hope the tradition continues. The 2024 Habanos Festival is being held in Havana from Feb. 26 – March 1.
The U.K. risks becoming a harm reduction country for the wealthy only, according to the World Vapers Alliance (WVA).
The government, led by Prime Minister Rishi Sunak, is reportedly planning to impose increased taxation on vaping products alongside traditional cigarettes. The proposal has sparked significant concern among U.K. vaping advocates, who argue it threatens to undermine the nation’s progress in harm reduction and smoking cessation efforts.
“It appears that in a bid to generate additional tax revenue, the U.K. government is willing to compromise the health of thousands of smokers,” said WVA Director Michael Landl. “This is yet another step in the wrong direction. By making less harmful alternatives to smoking more expensive, the government is effectively deterring smokers from making the switch. This measure will disproportionately affect the less affluent and exacerbate health inequalities, especially during a cost of living crisis.”
The WVA cites statistical evidence revealing the disproportionate impact of smoking on lower socioeconomic groups. In 2021, the Office for National Statistics highlighted a stark disparity in smoking prevalence related to economic status in the U.K. Unemployed individuals reported a significantly higher smoking rate (25.7 percent) compared to those in paid employment (13.3 percent). Furthermore, in England, a pronounced smoking prevalence was observed in the most deprived neighborhoods (23.8 percent) in contrast to the least deprived (6.8 percent).
Landl also criticized the government’s proposed bans on disposable vapes and generational restrictions on heat-not-burn products.
“Along with the proposed tax increases, these bans will only serve to transform the U.K. from a leader in tobacco harm reduction into a haven for black market activities,” he said.
Harm perceptions of e-cigarettes have worsened substantially over the last decade among adult smokers in England, according to a study published by Jama Network Open.
In 2023, most adults who smoked believed e-cigarettes to be at least as harmful as cigarettes. The timing of the changes in harm perceptions coincided with the e-cigarette, or vaping product, use-associated lung injury outbreak in 2019 and the recent increase in youth vaping in England since 2021.
Researchers collected data from 28 393 adult smokers. In November 2014, 44.4 percent thought e-cigarettes were less harmful than cigarettes, 30.3 percent thought e-cigarettes were equally harmful, 10.8 percent thought they were more harmful, and 14.5 percent said they did not know.
However, by June 2023, the proportion who thought e-cigarettes were less harmful had decreased by 40 percent, and the proportion who thought e-cigarettes were more harmful had more than doubled.
Changes over time were nonlinear: late 2019 saw a sharp decline in the proportion who thought e-cigarettes were less harmful and increases in the proportions who thought they were equally or more harmful. These changes were short-lived, returning to pre-2019 levels by the end of 2020.
However, perceptions worsened again from 2021 up to the end of the study period: the proportion who thought e-cigarettes were more harmful increased to a new high, and the proportion who thought e-cigarettes were less harmful decreased to levels comparable to those in late 2019.
As a result, in June 2023, the perception that e-cigarettes were equally as harmful as cigarettes was the most commonly held view among adults who smoke, with roughly similar proportions perceiving e-cigarettes to be less and more harmful.
Polish Health Minister Izabela Leszczyna is mulling a ban on the sale of disposable electronic cigarettes, according to the Polish edition of Business Insider.
Leszczyna added that she would like to pursue the fastest possible legislative path to such as measure, given that as many as 64 percent young people in Poland had “contact” with the product.
Meanwhile, Poland is preparing to implement the EU directive banning the sale of flavored heated tobacco products. According to local media reports, the regulation may take effect from next year.
The EU directive prohibits the placing on the EU market of flavored heated tobacco products and removes the possibility for member states to grant exemptions for such products from certain labeling requirements set out in EU law.
The government of Sindh, Pakistan, has banned the use of shisha and e-cigarettes in public places. The government directed authorities to implement the Prohibition of Smoking and Protection of Nonsmokers Health Ordinance 2002.
The ban includes hotels, restaurants, parks, cafes and picnic areas; however, the ordinance is not being implemented in “true and spirit,” according to Pakistan Today.
The health department has directed authorities to “take relevant action against the violators” of the ban.
Turning Point Brands announced financial results for the fourth quarter and full year ended Dec. 31, 2023.
Total consolidated net sales decreased 6.1 percent in the fourth quarter of 2023 to $97.1 million. Zig-Zag Products net sales decreased by 2.9 percent. Stoker’s Products net sales increased by 18.6 percent. Creative Distribution Solutions net sales decreased by 43.7 percent. Gross profit increased 1.9 percent to $50.5 million. Net income increased $26.4 million to $10.1 million. Adjusted net income increased 15.9 percent to $15.3 million. Adjusted EBITDA increased 7.5 percent to $24.8 million.
“Our fourth-quarter results were at the high end of our expectations,” said TPB President and CEO Graham Purdy in a statement. “The Zig-Zag segment was stable from the previous year, excluding the impact of a discontinued product line, and is well positioned to return to growth in 2024. Stoker’s had an outstanding quarter, posting its highest growth rate in over four years led by double-digit growth year-over-year in Stoker’s MST. We also had strong free cash flow generation during the year, allowing us to build a cash balance to address the remaining principal amount of our convertible notes at maturity in July. Our outlook for 2024 is positive as we expect solid growth in our Zig-Zag and Stoker’s Products businesses.
“Our U.S. Zig-Zag papers and alternative channel business posted a strong quarter with double-digit growth to close the year. With the reduction of trade inventory through the year, Zig-Zag is now positioned to return to growth aided by industry secular growth trends and internal growth initiatives.”
“Stoker’s had an exceptional quarter with strong market share gains in both the MST and loose-leaf categories as its value proposition continues to resonate with consumers,” continued Purdy. “We are excited about the planned expansion of our FRE white nicotine pouch product throughout the year.”
KT&G’s board of directors has tabled several items to be discussed at the company’s annual general meeting of shareholders on March 28. These items include the appointment of Kyung-man Bang as president and Min-kyu Lim as outside director as well as the Industrial Bank of Korea’s shareholder proposal of appointing Dong-hwan Shon as outside director and Agnes’ shareholder proposal of appointing Sang-hyun Lee as outside director.
The board has selected Kyung-man Bang, the current chief operating officer of KT&G, as the final CEO candidate, citing his extensive knowledge of the company’s overall business operations and his capability to steer the company through market challenges and toward the aspiration of becoming a “global top-tier” company.
Min-kyu Lim, nominated for the role of outside director, is renowned for his leadership at major listed companies in Korea, including as CEO of OCI Materials and SK Materials. His extensive expertise in organizational and risk management and sustainable business practices is also well regarded.
Sang-wook Kwak, an outside director candidate who will also serve as an audit committee member upon appointment, is counselor at Hwa Hyun, a Korean law firm. He previously served as chief of the Criminal Department at the Supreme Prosecutors’ Office of the Republic of Korea before assuming the role of inspection commissioner at the Board of Audit and Inspection.
“We have always valued the legitimate exercise of shareholder rights and have decided to table all shareholder proposals for the upcoming AGM without any objection, reflecting our respect for the integrity and purpose of shareholder proposals,” KT&G wrote in a statement. “We maintain close communication with all of our stakeholders, including shareholders, about KT&G Group’s future vision and growth strategies. Our commitment to maximizing the interests of all shareholders and enhancing the future value of the company remains steadfast.”
Pakistani tobacco growers want control of the crop, stating that the federal government should no longer have authority over it because it is the domain of the provincial government under the 18th Amendment, reports Dawn.
The growers have said that the Pakistan Tobacco Board (PTB) has not looked out for their interests but rather the interests of the buyers and themselves.
“Its officials have played a controversial role and gave importance to their personal interest over the farmers’ interest,” said Khalid Khan, district president of the Kisan Board. “When PTB officials and representatives of the companies remain in league, how [will] the poor farmers survive?”
Azizur Rehman, a leading grower in Maneri Bala village, said that if the PTB and companies gave rights to the growers, it would improve growers’ financial positions and bring more people into the farming profession.
A Chinese man who was arrested in Australia is awaiting extradition to the United States for allegedly selling counterfeit cigarettes in a North Korean scheme to generate revenue, according to Reuters.
“The individual is wanted to face prosecution in the United States for a number of sanctions, band fraud, money laundering and conspiracy offenses,” said a spokesperson for Australia’s Attorney-General’s Department. Jin Guanghua was arrested in Victoria and remains in custody.
According to an unsealed U.S. indictment, Jin, who is a Chinese citizen, allegedly committed bank fraud in an illegal scheme by North Korea to generate revenue through the purchase and sale of tobacco. The indictment stated that the North Korean banks used front companies to avoid U.N. sanctions.
According to the U.S. Federal Bureau of Investigation, Jin was one of three Chinese nationals acting as middlemen to purchase tobacco for companies owned by the North Korean government and military. The tobacco, which was purchased from international suppliers and shipped to Dalian, China, before being smuggled to North Korea, was used to manufacture counterfeit cigarettes to generate hard currency.
Jin was involved between 2009 and 2019, according to the indictment, and remains in custody “pursuant to the United States of America’s request for his extradition to face criminal charges in the United States.” A warrant for his arrest was executed in August, according to a spokesperson from a Victorian magistrates court.
Globally, North Korea is one of the largest producers of contraband cigarettes.
