Category: Featured

Vector Group Releases Financials

Photo: Summit Art Creations
Vector Group has released its fourth-quarter and full-year financial results for the three months and year ended Dec. 31, 2023.
In the fourth quarter, consolidated revenues were $360.4 million, down 0.9 percent, or $3.4 million, compared to the prior year period. The tobacco segment wholesale market share increased to 5.7 percent from 5.5 percent in the prior year period, and retail market share remained at 5.8 percent in the current period.
Montego wholesale market share increased to 3.8 percent from 3 percent in the prior year period, and retail market share increased to 3.8 percent from 3.2 percent in the prior year period.
Operating income was $91.6 million, up 2.6 percent, or $2.3 million, compared to the prior year period. The tobacco segment operating income was $98.1 million, up 5.6 percent, or $5.2 million, compared to the prior year period.
Adjusted EBITDA was $96 million, up 3.6 percent, or $3.3 million, compared to the prior year period. Tobacco adjusted EBITDA was $99.6 million, up 5.4 percent, or $5.1 million, compared to the prior year period.
For full-year 2023, consolidated revenues were $1.42 billion, down 1.2 percent, or $16.7 million, compared to the prior year. Tobacco segment revenues were $1.42 billion, down 0.1 percent, or $0.9 million, compared to the prior year. Tobacco segment wholesale and retail market share increased to 5.5 percent and 5.8 percent from 5.4 percent and 5.5 percent, respectively, in the prior year.
Montego wholesale market share increased to 3.5 percent from 2.5 percent in the prior year, and retail market share increased to 3.6 percent from 2.6 percent in the prior year.
Operating income was $328 million, down 3.2 percent, or $11 million, compared to the prior year. Tobacco segment operating income was $346.7 million, down 0.1 percent, or $0.4 million, compared to the prior year.
Adjusted EBITDA was $363.2 million, up 3.1 percent, or $11 million, compared to the prior year. Tobacco adjusted EBITDA was $370.6 million, up 5.5 percent, or $19.4 million, compared to the prior year.
“Vector Group delivered a solid performance in 2023 amid a dynamic operating environment as the successful execution of our targeted investment strategy enabled Montego’s continued growth as the largest discount brand in the United States,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “The company is well positioned in 2024, and we are confident we have the right strategy and team in place to continue optimizing long-term profit and driving value for our stockholders.”
February 14, 2024
Pyxus Reports Strong Results

Photo: Pyxus International
Pyxus International reported sales and other operating revenues of $1.6 billion for the nine months that ended Dec. 31, 2023, up by 8.2 percent over the figures posted for the comparable 2022 period. The company reported positive net income in each of the first three quarters of fiscal 2024 to reach a total of $12.7 million compared to a net loss of $18.5 million in the same period of fiscal 2023. Average gross profit per kilogram increased by 28.3 percent to $0.77.
“Our teams around the world continue to demonstrate their ability to drive broad-based improvement, leveraging our business momentum and strong position in the current market to produce solid third-quarter and year-to-date results,” said Pyxus President and CEO Pieter Sikkel in a statement. “This success positions us to increase our full-year guidance as we remain focused on concluding an outstanding fiscal year.”
The company attributed its improved sales and operating revenues to consistent execution, an inventory mix well matched to specific customer demand and an increase in average pricing of 10 percent. This growth was slightly offset by a 1.9 percent reduction in volume.
Sales and other operating revenues in the third quarter of $529.8 million were lower as compared to $655.6 million in the same period of the prior year. The decrease was principally due to a 22.7 percent decrease in volume, which primarily reflects a difficult comparison to the year-ago quarter, which benefited from the inclusion of previously delayed shipments as well as acceleration of shipments from the current-year quarter into the first half of the fiscal year, according to Pyxus. The impact of the volume decline was partially offset by an average market sales price increase of 3.7 percent in this year’s third quarter.
Third quarter net income improved to $3.8 million as compared to a net loss of $2.3 million in the prior year’s third quarter despite the inclusion of a noncash expense of $12 million related to a pension termination in the United Kingdom.
“Our operational discipline, improved working capital efficiency and geographic diversification enabled us to purchase more tobacco even as we accelerated our repayment of outstanding lines of credit,” said Sikkel. “We believe these attributes enable the company to deliver significant and sustainable value to its financial stakeholders and support further potential improvements in our operational results and working capital.”
February 14, 2024
Vaping Altering Senses: Study

Photo: fotofabrika
Research from the University of Otago shows that a side effect of vaping may be a distaste for “sweet” smells, reports the Otago Daily Times.
The study had more than 200 participants who vaped regularly, occasionally or never. It aimed to assess potential impacts of vaping on taste and smell.
The results showed that nonvapers found “sweet” smells more pleasant than vapers, according to Jessica McCormack, researcher from the university’s Department of Food Science.
The distaste may be a result of vapers’ overexposure to sweet vape flavors, according to McCormack.
Study participants rated pleasantness and intensity of smell and taste samples and did a sensory detection test where they guessed between plain water and the taste or smell at a very low concentration.
Results showing a smell dysfunction and taste changes in vapers were consistent with studies looking at smokers, McCormack said.
“We still have more we need to know about what the mechanisms might be here—is it related to the use of flavors or nicotine or a combination?”
The study was conducted in collaboration with the National Institute for Health Innovation and published in the journal Appetite.
February 14, 2024
Snus Documentary to Screen in Spain

Image: fergregory
Somos Innovacion announced the avant-premiere of the documentary How Sweden Stopped Smoking by award-winning Polish director Tomasz Agencki. The screening will take place on Feb. 27 at Espacio Balboa in Madrid and will include a panel discussion with leading experts in health and activism.
This documentary delves into the story of how Sweden became a smoke-free nation. Through interviews with scientists, doctors, innovators and artists, Agencki spins a tale that examines the complex interplay of science, politics, history and personal will behind this “Swedish miracle.”
“We are excited to share this inspiring story about the courage and creativity that made a healthier future possible for Swedes,” says Federico N. Fernandez, CEO of Somos Innovacion, in a statement. “We believe the lessons from Sweden’s journey can guide other nations to achieve the same progress.”
Following the screening, a panel of experts composed of Fernando Fernandez Bueno, oncologic surgeon and prominent anti-smoking opinion leader; Josep Maria Ramon Torrell, head of the Tobacco Treatment Unit at Bellvitge Hospital and professor of medicine; Julio Ruades, popular YouTuber and spokesperson for the Spanish Association of Personal Vaporizer Users; Federico N. Fernandez, CEO of Somos Innovacion; and moderated by Carmen Escrig, coordinator of the Spanish Medical Platform for Tobacco Harm Reduction will share unique perspectives and discuss key lessons that inspire other nations to follow Sweden’s example in the fight against smoking.
Space is limited. Reserve free tickets on Eventbrite: https://bit.ly/SueciaLibreDeHumo. This avant-premiere is in-person only; it will not be streamed.
February 14, 2024
22nd Century Slashes Board Compensation

Image: Garry L.
22nd Century Group today announced a reduction in board compensation expenses expected to save more than $1 million in annual cost for 2024. In addition to the reduced cash compensation structure, the board has also waived any cash compensation due to non-employee directors for the fourth quarter of 2023 and the first quarter of 2024 and voted to forgo any equity compensation grants for directors in 2024.
“We continue to build on our progress over the past two months as we rapidly turn 22nd Century into a lean operating tobacco business focused on efficiency and value in everything we do,” said 22nd Century Chairman and CEO Larry Firestone in a statement. “These latest changes not only reduce the cash and total compensation cost related to our board, they align the board with our operating philosophy as we seek to become a self-sustaining business through a combination of sales growth, margin improvement and cost reduction.”
Under the revised compensation structure, adopted with immediate effect, annual independent director compensation will decline from $75,000 to $20,000, audit chair compensation from $20,000 to $10,000, and compensation and nominating & governance chair compensation from $20,000 to $5,000. Compensation for independent directors serving on these committees will be reduced from $10,000 per year to $5,000 per year, and independent board chair compensation, which was previously $50,000 per year, will be replaced with a lead director fee of $20,000 annually. Non-independent members of the board do not receive additional cash compensation for their board service.
February 13, 2024
EU Tracking System Under Fire in Panama

Photo: Tobacco Reporter archive
During the meeting in Panama of the parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP3), European Member of Parliament Anne-Sophie Pelletier today expressed her concerns about the shortcomings of the European tobacco product tracing system.
According to Pelletier, the Dentsu tracking system fails to comply with World Health Organization protocol—which the EU ratified in 2016—in part due to its association with the tobacco business.
Dentsu’s system is split between IT firms that operate information-tracking databases on those codes for individual manufacturers and importers, and an overarching level that gathers all that data into a “secondary data repository.” At the end of 2018, Dentsu Tracking, a subsidiary of Japan’s Dentsu Group, was awarded a contract to operate this secondary repository.
During a debate in Brussels on Feb. 8, European lawmakers highlighted the inefficiency of the European tobacco product tracing system, with several member states lamenting an increase in the level of tobacco parallel trade since its implementation in 2019.
Furthermore, European parliamentarians questioned the choice of Dentsu Tracking as the provider, and that company’s recruitment of Jan Hoffmann, a former official of the EU’s Directorate-General for Health and Food Safety (DG Sante), as director of its regulatory affairs and compliance division.
Dentsu has denied that Hoffman had any part in either awarding the contract to the company during his stint at DG Sante, or that he is using his Commission contacts to help the company in any way. “His hiring at Dentsu was carried out in full compliance with all applicable laws and regulations,” Dentsu Tracking’s CEO Philippe Castella was quoted as saying by Politico in 2023.
February 13, 2024
Rutgers to Study Menthol Ban Perception

Photo: By Benjamin Clapp
Rutgers University researchers have received more than $7 million to study disinformation and marketing around the proposed U.S. ban on menthol cigarettes and flavored cigars with a particular focus on how the information affects Black and Hispanic smokers, reports The Philadelphia Inquirer.
Kymberle Sterling, associate director for justice, equity, diversity and inclusion at the Rutgers Institute for Nicotine and Tobacco Studies, will lead two studies funded by the National Institute on Minority Health and Health Disparities and the National Institute on Drug Abuse.
According to Sterling, it’s crucial to study how Black and Hispanic smokers, demographic groups that tend to smoke more menthol cigarettes than white individuals, perceive messaging from the tobacco industry around the menthol ban.
Those against the ban worry that it will increase policing of Black communities and businesses while supporters feel that the ban will save lives, especially in Black communities where menthol is prevalent.
“We know that police discrimination among African American communities is a problem,” Sterling said. “However, the tobacco industry is co-opting that and using that real social justice issue as a way to promote fear—and sell their product.”
Sterling’s team plans to use the funding to develop counter-messaging debunking false information and providing facts about menthol cigarettes. The study will look at the effectiveness of the public health campaign over five years. Researchers will also work with community members to educate individuals about the menthol and flavored cigar ban.
“What we would ideally like to do is develop a set of messages that our community partners can disseminate in their community. Once this grant is wrapped up, we don’t want the work to stop because the tobacco industry won’t stop,” Sterling said.
The study will also look at how the tobacco industry reacts once the ban is in place, such as new packaging.
“We’re looking at how young adults are exposed to this repackaging as well as what sort of sociopolitical rhetoric the industry will put out,” Sterling said.
February 13, 2024
Deborah Arnott to Retire from ASH

Photo: Lyubov
Deborah Arnott will be retiring from Action on Smoking and Health (ASH) on Sept. 30, and the board of trustees is starting the recruitment process for her successor.
During her 21-year tenure at ASH, Arnott developed and led campaigns that contributed to U.K. legislation prohibiting smoking in public places, putting tobacco out of sight in shops and plain standardized tobacco packs. According to ASH, the ratcheting up of regulation has been accompanied by substantial declines in smoking prevalence of more than half among adults and more than 80 percent among children aged 11–15.
Before Arnott retires, Parliament is expected to have passed laws to create a smoke-free generation.
“I want to thank Deborah for her passion and determination over the last 21 years,” said Nick Hopkinson, chair of trustees at ASH, in a statement. “While everyone at ASH will be sad to see Deborah go, she leaves ASH in a robust position, with sound finances and a talented staff team. The next chief executive will inherit a highly motivated group of colleagues and supporters. Now is an exciting time for tobacco control, with government commitments to a smoke-free future and raising the age of sale to create a smoke-free generation overwhelmingly supported by the public and Parliament.”
Arnott said, “I am proud to be leaving ASH at a good time and in safe hands, well on the way to delivery of our mission to eliminate the harm caused by tobacco. Our values, the strength of our team, the quality of ASH advocacy and networking, and our reputation and influence all stand us in good stead for the future. Whoever takes over from me is inheriting the leadership of an outstanding organization.”
Bob Blackman, Member of Parliament and chairman of the All-Party Parliamentary Group on Smoking and Health, which ASH provides the secretariat for, said, “What has been achieved in tobacco legislation over the last 21 years is in no small measure due to the brilliant work led by Deborah at ASH. Working in collaboration with politicians from across the political spectrum, she has built and sustained a truly cross-party consensus on ending the harms from smoking. As a result, I have no doubt that MPs from every party will vote to create a smoke-free generation later this year. We have much to thank her for.”
February 13, 2024
India Urged to Embrace Harm Reduction

Photo: Taco Tuinstra
India should consider harm reduction strategies to reduce the health toll of tobacco, according to the Global Sustainability Alliance (GSA), a group that focuses on developing global solutions to achieve the United Nation’s Sustainable Development Goals.
A recent report by World Health Organization suggests that new cancer cases are likely to rise to at least 35 million in 2050, a 77 percent rise over the cases diagnosed in 2022. In India, an estimated 1.4 million cancer cases were recorded in the same year, while one in 9 citizens could develop cancer in their lifetime. Tobacco-related cancers accounted for 27 percent of the country’s cancer burden in 2020, according to the Indian Council of Medical Research.
Despite recent progress, India remains the second largest consumer and producer of tobacco. The number of smokers as well as smoking related diseases seem to be stagnant, which, the GSA says, sheds light into the fact that the tobacco control polices under WHO have not been successful for India. The group says country needs to find a solution on its own and develop a strategy to reduce the number of cancer patients owing to tobacco consumption.
“Cancer is a serious concern for our population, especially with tobacco use as a leading cause, which is avoidable,” said Bharat Gopal, director of Pulmonology, Delhi Heart & Lung Institute in a statement. “There is no safe way to use tobacco, however a major risk of cancer comes from combustion of tobacco or tobacco smoke. Most toxic substances, including carcinogenic agents, are released due to combustion. If we can somehow remove combustion from the process, it would reduce harm and help save lives.”
The GSA points to Sweden, Japan and the United Kingdom as examples of countries that have bettered their public health by adopting tobacco harm reduction policies to reduce disease rates, cancer being one. The smoking rate in Sweden had dropped from 15 percent to a 5.6 percent in the past 15 years, registering a 41 percent lower incidence than in the EU. Similarly, the Japanese smoking rate declined drastically between 2016 and 2019. Almost three in every 10 Japanese smokers stopped smoking cigarettes.
“We know stopping smoking is ideal to stop cancer, but the reality is that millions struggle to quit,” said R. Zimlichman, director of the Brunner Institute for Cardiovascular Research at the Sackler Faculty of Medicine of Tel Aviv University in Israel. “Harm reduction offers a pragmatic and potentially life-saving alternative. Embracing harm reduction strategies, such as switching to nicotine alternatives, has led to a remarkable decline in mortality rates and improved public health outcomes. The world needs standardized harm reduction solutions chosen by governments for their safety and efficacy. Delay in implementing harm reduction measures costs millions of lives worldwide.”
February 13, 2024
JT Reports ‘Record’ Performance

Masamichi Terabatake (Photo: JT Group)
The JT Group reported a profit of ¥482.3 billion ($3.2 billion) for 2023, up nearly 9 percent over the previous fiscal year. Revenue increased 6.9 percent year-on-year, to ¥2.84 trillion. For the fourth quarter, the company posted a profit of ¥40.3 billion and revenue of ¥684.1 billion, up 3.5 percent and 5.4 percent, respectively, over the comparable 2022 periods.
“I am pleased to report that the 2023 JT Group performance reached record high levels across all financial indicators, despite the challenges across our operating environment. Adjusted operating profit at constant FX [foreign currency exchange rates], our main indicator, exceeded our guidance and grew by 5.2 percent, driven by all business segments,” said JT Group President and CEO Masamichi Terabatake in a statement.
In the tobacco business, JT Group’s profit growth engine, performance was driven by solid pricing and continued share gains in combustibles. “We steadily expanded the geographic reach of Ploom X, making it available to adult consumers in 13 markets at the end of 2023,” said Terabatake. In Japan, the JT Group’s share of the heated tobacco sticks market reached 11.4 percent in December 2023.
Terabatake said the JT Group would continue to prioritize investments in heated tobacco sticks to fund the expansion of Ploom X, both in terms of share of segment and geographic footprint. The company aims to make Ploom X available in over 40 markets by the end of 2026. Combustibles, said Terabatake, will continue to drive profit by growing market share and revenue.
February 13, 2024