Category: Featured

  • Penalties for Unauthorized Elf Bars

    Penalties for Unauthorized Elf Bars

    Photo: mehaniq41

    On Feb. 26, the U.S. Food and Drug Administration announced the filing of complaints for civil money penalties (CMPs) against 20 brick-and-mortar retailers for the sale of unauthorized Elf Bar e-cigarettes. The FDA previously issued each retailer a warning letter relating to their sale of unauthorized e-cigarettes. However, follow-up inspections revealed that the retailers had failed to correct the violations, and the agency is now seeking the maximum penalty amount of $20,678 for a single violation from each retailer.

    Including these complaints, the FDA has filed more than 100 CMP complaints against retailers for the illegal sale of Elf Bar e-cigarettes. Data indicate these products are appealing to youth. According to the 2023 National Youth Tobacco Survey, Elf Bar was the most commonly used brand among U.S. youth e-cigarette users; among middle and high school students who reported using e-cigarettes in the past 30 days, more than half said they used Elf Bar products during that period.

    “These retailers have not adequately addressed the violations noted in previous warnings from FDA regarding the sale of unauthorized e-cigarettes,” said Brian King, director of the FDA’s Center for Tobacco Products. “Their continued failure to comply with the law is inexcusable, and as is evidenced by today’s actions, we’re committed to holding them accountable for it.”

    As of Feb. 15, the FDA has issued more than 440 warning letters to and filed 100 CMP actions against retailers, including brick-and-mortar and online retailers, for selling unauthorized tobacco products. In addition to actions involving retailers, the FDA has issued more than 660 warning letters to manufacturers, importers and distributors for illegally selling and/or distributing unauthorized new tobacco products, including e-cigarettes. The agency has also filed CMP complaints against 50 e-cigarette firms for manufacturing unauthorized products and sought injunctions in coordination with the U.S. Department of Justice against seven manufacturers of unauthorized e-cigarette products.

  • Zimbabwean Shisha Production Set to Triple

    Zimbabwean Shisha Production Set to Triple

    Photo: Cavendish Lloyd

    Zimbabwe is poised to produce more than 800 million kg of shisha tobacco this season, reports The Herald, citing statistics from the Tobacco Industry and Marketing Board.

    According to the regulator, tobacco growers have planted 407 hectares of the crop this year, marking a 270 percent increase over last year’s hectarage.

    Cavendish Lloyd, the only registered shisha tobacco contractor in Zimbabwe, expects better quality and yields this year as growers had gained experience and put into practice last year’s recommendations from buyers.

    A company representative said he anticipated yields of between 2,000 kg and 2,300 kg per hectare.

    Derived from imported seed varieties, the shisha flue-cured tobacco requires different agronomic practices than Zimbabwe’s traditional flue-cured crop.

    The shisha tobacco is characterized by low nicotine levels (below 1 percent) and high sugar levels (above 25 percent). To achieve the lower nicotine levels, farmers grow 3,000 plants per hectare—double the number that is typical for Zimbabwe’s traditional flue-cured crop. The density ensures the plant competes more fiercely for nutrients, which in turn reduces nicotine levels.

    In its inaugural year of commercial production (2023), shisha tobacco farmers earned an average of $3.15 per kilogram.

    Tobacco Reporter profiled Cavendish Lloyd’s Zimbabwean shisha operations in its May 2022 print edition (see “Great Expectations”).

  • Habanos Reports $721 Million Turnover

    Habanos Reports $721 Million Turnover

    Photo: Corporacion Habanos

    Corporacion Habanos generated revenues of $721 million in 2023, up 31 percent compared to the previous year.

    “The achievements of Habanos S.A. during 2023 are the result of the recognition of the unique origin of our tobacco, the strength and prestige of our brands, and, of course, the passion shared by all those involved in this fascinating world of Habanos,” Habanos’ co-presidents, Maritza Carrillo Gonzalez and Luis Sanchez-Harguindey, were quoted as saying in a press note.

    “Thus, we celebrate 30 years of Corporacion Habanos, S.A., offering unparalleled moments and experiences to all lovers of premium tobacco in every corner of the world.”

    With 27 brands and a presence in more than 130 countries, Habanos attributed its performance to “excellence, tradition and innovation.”

    The company’s products are available on five continents. During 2023, the markets that contributed most to Habanos’ sales volume were Spain, France, China, Germany and Switzerland. By region, Europe remains the leading market for Habanos, accounting for 56 percent of total sales value, followed by Asia (21 percent), the Americas (13 percent) and Africa and the Middle East (10 percent).

    In 2023, the company launched 31 new products, including Cohiba Siglo de Oro, Cohiba Ideales, Romeo y Julieta Cupidos, Hoyo de Monterrey Monterreyes No. 4 and Bolivar New Gold Medal.

    During the Habano Festival this week, the company will be unveiling several additional products.

  • U.K. Poised to Announce Vaping Levy

    U.K. Poised to Announce Vaping Levy

    Photo: spectrumblue

    U.K. Chancellor Jeremy Hunt is expected to announce a “vaping products levy” during the presentation of the government budget on March 6, reports The Guardian.

    The tax would be similar to 15 schemes in European countries, including Germany, where a €1.60 ($1.73) tax is charged on every 10 mL of vape liquid, and Italy where the rate is €1.30. The EU is also planning a vaping levy across the 27-nation bloc.

    The U.K. tax would charge higher rates for products with more nicotine. There would also be a one-off increase in tobacco duty to ensure that vaping remains a cheaper alternative, with the two measures expected to raise more than £500 million ($633.73 million) a year by 2028–2029, according to The Times.

    Prime Minister Rishi Sunak plans to ban smoking for the next generation by steadily increasing the legal smoking age in England so that tobacco would end up never being sold to anyone born on or after Jan. 1, 2009.

    Vaping industry representatives described the tax plan as an attack on people trying to quit smoking.

    “Vaping is proven to be the most effective way for smokers to quit and in doing so helps drastically reduce the cost of care the NHS [National Health Service] provides to smokers,” said John Dunne, director general of the U.K. Vaping Industry Association, in a statement.

    “It makes absolutely no sense to make it more difficult for adults to stop smoking by penalizing those who choose a safer and healthier option in vaping. Smoking kills 250 people every day in the U.K. and according to Action on Smoking and Health costs the U.K. £17 billion a year,” Dunne added.

    “A Centre for Economics and Business Research report in 2022 found that smokers switching to vaping saved the NHS £322 million, a figure that was estimated to more than double if 50 percent of U.K. smokers made the switch to vapes.

    “Surely, we should be doing everything we can to help smokers escape a habit that kills so many. Increasing taxes on vaping will make vapes less accessible for the most disadvantaged in society who have the highest smoking rates and are most in need of an effective tool to quit.

    “The government continue to hide their heads in the sand while taking actions that will fuel a black market which is already in danger of being out of control. Restricting access to vapes will not only mean more smokers; it will also mean more illegal and unregulated vapes. We need the government to license vape retailers and properly enforce the law against youth access before it is too late.”

    It makes absolutely no sense to make it more difficult for adults to stop smoking by penalizing those who choose a safer and healthier option in vaping.

    “A Centre for Economics and Business Research report in 2022 found that smokers switching to vaping saved the NHS £322 million, a figure that was estimated to more than double if 50 percent of U.K. smokers made the switch to vapes.”

    “Surely, we should be doing everything we can to help smokers escape a habit that kills so many. Increasing taxes on vaping will make vapes less accessible for the most disadvantaged in society who have the highest smoking rates and are most in need of an effective tool to quit.

    “The government continue to hide their heads in the sand, while taking actions that will fuel a black market which is already in danger of being out of control. Restricting access to vapes will not only mean more smokers; it will also mean more illegal and unregulated vapes. We need the government to license vape retailers and properly enforce the law against youth access before it is too late.”

  • New Zealand to Scrap Generational Ban Today

    New Zealand to Scrap Generational Ban Today

    Photo: dudlajzov

    New Zealand was set to repeal its generational tobacco ban today, reports Reuters.

    Scheduled to take effect from July, the measure would have banned sales of tobacco products to anyone born after Jan. 1, 2009, required tobacco companies to lower the nicotine content of their products and reduced the number of tobacco retailers by 90 percent.

    Conceived by New Zealand’s previous government, the ban was abandoned after elections in October 2023 brought to power a new coalition. By treating the repeal as a matter of urgency, the government can scrap the ban without seeking public comment.  

    New Zealand’s reversal has attracted fierce criticism from public health advocates, who claimed the new government was doing the tobacco industry’s bidding.

    “This is major loss for public health and a huge win for the tobacco industry—whose profits will be boosted at the expense of Kiwi lives,” Boyd Swinburn, co-chair of Health Coalition Aotearoa in New Zealand, was quoted as saying by Reuters.

    Minister of Health Shane Reti has defended New Zealand’s plans to repeal the smoke-free legislation. He said his administration was committed to cutting smoking rates and referred to the potential of harm reduction tools such as vaping to help achieve the desired reductions.

  • New COP and MOP Bureaus Elected

    New COP and MOP Bureaus Elected

    Photo: butenkow

    The 10th session of the Conference of the Parties (COP10) to the World Health Organization Framework Convention on Tobacco Control, held Feb. 5–10, 2024, in Panama City, elected new members for its Bureau. The Bureau shall serve until the closure of the following regular session of the Conference of the Parties (COP11), including for any intervening extraordinary session.

    Reina Roa of Panama was elected president of the Bureau. The vice presidents will be Csaba Kontor of Hungary, Noraryana Binti Hassan of Malaysia, Jawad Al-Lawati of Oman, Nuntavarn Vichit-Vadakan of Thailand and Judith Segnon-Agueh of Benin.

    Vichit-Vadakan will also act as rapporteur.

    The following parties were designated to act as regional coordinators for the COP:

    • Cote d’Ivoire for the African Region;
    • Canada for the Region of the Americas;
    • Tunisia for the Eastern Mediterranean Region;
    • Spain for the European Region;
    • Timor-Leste for the South-East Asia Region; and
    • New Zealand for the Western Pacific Region.

    The Third Session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP3), held Feb. 12–14, 2024, in Panama City, also elected its new Bureau. The new Bureau shall serve until the closure of the following regular session of the Meeting of the Parties (MOP4), including for any intervening extraordinary session.

    Mansour Zafer Alqahtani from Saudi Arabia was elected president of the Bureau. The vice presidents are Hekali Zhimomi of India, Zliza Fantidou of Cyprus, Vimal Deo of Fiji, Omar Badjie of the Gambia and Marcos Dotta of Uruguay.

    Deo will also act as rapporteur.

    The following parties were designated to act as regional coordinators for the MOP:

    • Gabon for the African Region;
    • Paraguay for the Region of the Americas;
    • Islamic Republic of Iran for the Eastern Mediterranean Region;
    • Greece for the European Region;
    • India for the South-East Asia Region; and
    • Samoa for the Western Pacific Region.
  • Hernandez Retires from Altria Board

    Hernandez Retires from Altria Board

    Image: Casimiro

    Jacinto J. Hernandez retired from Altria Group’s board of directors effective Feb. 23, 2024. Hernandez will continue to serve Altria as a strategic advisor under a five-year agreement.

    “We thank Jacinto for his service on our board,” said Kathryn McQuade, Altria’s independent board chair, in a statement. “Our board benefited from his industry experience and financial expertise.”

    “I joined Altria’s board because I am inspired by Altria’s vision to responsibly lead the transition of adult smokers to a smoke-free future,” said Hernandez. “I am pleased that this agreement will allow me to focus my attention on helping Altria pursue its vision working directly with management.”

    Hernandez is founder and principal of Cummings Consulting and Management. He previously served as a partner and investment analyst for Capital Group and its subsidiary, Capital World Investors.

    He joined the Capital Group companies in August 2000 and retired in June 2022 after having spent 22 years covering a variety of industries, including U.S. tobacco, helping lead the research portfolio for one of the largest growth mutual funds in the world and serving in key leadership roles.

    Hernandez is a director of Aris Water Solutions. He previously served as a director of Pioneer Natural Resources Co.

  • Ireland: Illegal Factory Shut Down

    Ireland: Illegal Factory Shut Down

    Photo: Stephen

    Irish Revenue and Customs officers, in cooperation with the national police service, shut down an illegal tobacco factory in north Dublin, seizing over €630,000 ($683,550.55) worth of cigarettes, reports the BBC.

    Customs officers confiscated 758,000 illicit Marlboro cigarettes and over 1.4 metric tons of raw tobacco.

    If sold legally, the seized products would have generated €500,000 in tax revenue for the Irish government.

    The equipment in the facility is believed capable of producing over 250,000 cigarettes an hour along with pre-processing and packaging facilities.

  • Germany Legalizes Recreational Marijuana

    Germany Legalizes Recreational Marijuana

    Image: Oksana Smyshliaeva

    Germany has legalized possession and home cultivation of recreational marijuana, according to Vaping360.

    When the law goes into effect, adults aged 18 and older will be allowed to possess up to 25 grams of cannabis in public spaces and up to 50 grams in private homes. Each household will be allowed to grow up to three plants.

    The law could take force as early as April 1 but could be pushed back; the bill must still go through the Bundesrat, the legislative body representing German states, and could be referred to a mediation committee, which would delay final adoption.

    Due to European Union concerns, the bill would not allow for sales in licensed dispensaries and pharmacies but creates a plan for nonprofit “cannabis social clubs” that will grow and distribute cannabis to a maximum of 500 members per club. The clubs could begin operations as early as July depending on the status of the bill.

    There are plans for another bill that would establish pilot programs for commercial sales in some German cities, according to Marijuana Moment; however, that legislation would need to be reviewed by the European Commission beforehand.

    When the bill goes into effect, it will make Germany the ninth country to legalize recreational cannabis and third EU member to do so.

    Not all lawmakers welcomed the legislation. Bundestag conservatives have made it clear that if they take power in next year’s election, they will roll back legalization completely.

  • Scotland to Ban Single-Use Vapes

    Scotland to Ban Single-Use Vapes

    Photo: Artem/md3d

    The sale and supply of single-use vapes in Scotland will be banned effective April 1, 2025, under new proposed legislation.

    The recommendation to ban single-use vapes follows a consultation on “Creating a Smoke-Free Generation and Tackling Youth Vaping” that ran across Scotland, England, Wales and Northern Ireland last year.

    The legislation uses the powers of the Environmental Protection Act of 1990. Each nation would need to pass separate legislation banning the sale and supply of single-use vapes, but the governments have agreed on an effective date for the ban.

    “Legislating to ban the sale and supply of single-use vapes fulfills a program for government commitment to reduce vaping among nonsmokers and young people and take action to tackle their environmental impact,” said Lorna Slater, circular economy minister. “The public consultation demonstrated that there is strong support for tougher action on vaping. From causing fires in waste facilities to more than 26 million disposable vapes being consumed and thrown away in Scotland in the past year, single-use vapes are a threat to our environment as well as to our public health.

    “These proposed changes to the law demonstrate our absolute commitment to further improve the well-being of communities and protecting our beautiful natural environment.”

    Proponents of single-use vapes have expressed disappointment with the legislation.

    “The banning of the very devices that have proved to be so successful in helping record numbers of adult smokers quit will result in serious unintended consequences,” the U.K. Vaping Industry Association (UKVIA) wrote in a press release. “The direct consequences of this ill-thought-out ban will see smoking deaths rise as smokers who have successfully transitioned to vaping reluctantly return to cigarettes with all the health harms, losses to the economy and burden on the NHS [National Health System] this will bring in its wake.”

    “Neither will this ban deal with the problem of youth uptake of vaping, which is one of the core aims of this legislation,” the UKVIA went on. “In fact, all the signs point to it actually having exactly the opposite effect as criminal gangs will move in to fill the huge gap in the regulated market with potentially dangerous black market single-use vapes.”

    Instead of the proposed ban, the UKVIA stated that the solution is “enforcing the existing laws, which make it a criminal offense to sell vapes to under-18s.”

    The draft legislation is open for consultation until March 8.