Category: Featured

  • BC Restricts Pouch Sales to Pharmacies

    BC Restricts Pouch Sales to Pharmacies

    Photo: StratfordProductions

    British Columbia has restricted the sale of nicotine pouches to drug stores, forcing users to consult a pharmacists prior to purchase, reports CBC.

    “By limiting access to these products and ensuring they are dispensed by trained health-care professionals, our goal is to prevent their misuse, especially among young people for recreational purposes,” said Health Minister Adrian Dix.

    The Canadian Cancer Society applauded the move, noting that while youth smoking rates in B.C. are down, other methods of nicotine consumption are up significantly.

    “With the introduction of flavored nicotine pouches last year, youth once again can become addicted to these new tobacco industry products,” it said in a statement.

    BAT subsidiary Imperial Tobacco Canada, manufacturer of the Zonnic nicotine pouch brand that was authorized for sale by Health Canada in October 2023, said British Columbia’s move would make it harder for smokers to quit.

    “It is mindboggling that the only cessation product in BC that is currently stored behind the counter in convenience stores with retailers requiring age-verification is being targeted by today’s announcement,” said Eric Gagnon, vice-president, corporate and regulatory affairs at Imperial Tobacco Canada, in a statement.

     “If today’s announcement was truly about protecting youth against nicotine, we question why Premier Eby isn’t putting the same restrictions on the other cessation products that contain nicotine and are available over the counter without proof-of-age,” he added.

    In November, federal health minister Mark Holland said regulators had been “duped” and vowed to close the loophole that allowed Zonnic to be sold openly.

    “There are very serious questions about what the tobacco industry is doing here and what their intention is. And it would seem that their intention is to addict new young people to nicotine, which is disgusting,” Holland said at the time.

    Zonnic does not contain tobacco, and because the pouches contain less than four milligrams of nicotine each and are not inhaled, they do not fall under existing federal or provincial tobacco or vaping legislation.

  • Panama Anti-Illicit Trade Meeting Kicks Off

    Panama Anti-Illicit Trade Meeting Kicks Off

    Photo: Europol

    The Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products kicks off today in Panama City.

    The gathering brings together 68 parties that have been working together to halt illegal trade in tobacco products. The meeting, which will run until Feb. 15, is the third such gathering of the Parties to the Protocol and the first since 2021.

    According to the World Health Organization, illicit trade accounts for about 11 percent of total global tobacco trade, and its elimination could increase global tax revenues by an estimated $47.4 billion annually.

    Adriana Blanco Marquizo, head of the Secretariat of the World Health Organization Framework Convention on Tobacco Control said that, despite its claims to the contrary, the tobacco industry profits from the illicit trade. “Implementing the protocol generates substantial funds for parties as it safeguards important tax revenues that can be utilized by governments to finance sustainable development,” she said in a statement.

    The Meeting of the Parties will review the efforts underway to implement a tracking and tracing system.

    A key component of the global tracking and tracing regime is the global information-sharing focal point, and the first phase of that initiative will begin to become available to parties once the meeting concludes. 

    Following an initial pilot phase, the new system will be open to all parties to the protocol, helping them to further secure the tobacco supply chain and assist in investigations. 

    The Meeting of the Parties will also consider ways to improve implementation of the protocol, determine the road ahead and highlight the need for additional evidence-based research. Reporting and information-sharing mechanisms will also be considered, as the sharing of experiences and best practices among parties is key to advancing the fight against illicit trade.

    In addition to the parties that are signatories to the protocol, which is an international treaty, the meeting will host observers, including countries that are not yet parties to the treaty.

  • COP Concludes

    COP Concludes

    Photo: Maksym Yemelyanov

    The 10th session of the Conference of the Parties (COP10) to the World Health Organization Framework Convention on Tobacco Control (FCTC) concluded on Feb. 10 with a commitment to strengthen protections against the impact of tobacco on the environment and health.

    “We have taken a historic decision on Article 18,” said Adriana Blanco Marquizo, head of the FCTC Secretariat, in a statement, describing action to strengthen the article of the FCTC focused on the protection of the environment and the health of all people.

    “The decision urges parties to take account of the environmental impacts from the cultivation, manufacture, consumption and waste disposal of tobacco products and to strengthen the implementation of this article, including through national policies related to tobacco and protection of the environment,” Blanco Marquizo said.

    Representatives from 142 parties gathered in Panama City Feb. 5–10 to tackle a range of issues from progress on implementation of the treaty to the regulation of tobacco advertising, promotion and sponsorship.

    According to the WHO, some 200,000 hectares of land are cleared every year for tobacco cultivation, accounting for up to 20 percent of the annual increase in greenhouse gases.

    The decision also addresses the issue of cigarette filters. According to the WHO, an estimated 4.5 trillion cigarette butts are thrown away annually worldwide, representing 1.69 billion pounds of toxic trash containing plastics.

    “Under specific circumstances—such as sunlight and moisture—cigarette filters break down into smaller plastic pieces, eventually leaching out some of the 7,000 chemicals contained in a single cigarette,” the WHO wrote on its website. “Many of those chemicals are environmentally toxic. The decision on Article 18 is very timely given the ongoing intergovernmental negotiation committees working to develop an international legally binding instrument on plastic pollution, including in the marine environment.”

    COP10 delegates also agreed to strengthen guidelines on cross-border tobacco advertising, promotion and sponsorship and the depiction of tobacco in entertainment media.

    In addition, two expert groups were established—one to work on forward-looking tobacco control measures under Article 2.1 of the FCTC and the other to focus on Article 19, which concerns liability.

    Other decisions adopted by COP10 relate to the promotion of human rights through the WHO FCTC as well as strengthening the FCTC Investment Fund.

    The parties also agreed to extend by five years the mandate of the Global Strategy to Accelerate Tobacco Control 2019–2025: Advancing Sustainable Development Through the Implementation of the WHO FCTC 2019–2025 so that it fully aligns with the 2030 Agenda for Sustainable Development.

    COP10 also adopted the Panama Declaration, which draws attention to the “fundamental and irreconcilable conflict” between the interests of the tobacco industry and the interests of public health. The declaration also makes clear the need for policy coherence within governments to comply with the requirements of Article 5.3 of the WHO FCTC, which aims to protect public health policies from commercial and other vested interests of the tobacco industry.

    Contradicting the observation of tobacco grower and consumer groups that traveled to Panama, the WHO insisted that COP10 was open to the media, which it said had the opportunity to observe all public and open sessions.

    COP10 is followed by the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products, which will meet in Panama City Feb. 12–15.

  • Russia Tackles Illicits

    Russia Tackles Illicits

    Photo: Center for Research and Perspective Technologies

    Russia’s national digital track-and-trace system, Chestny ZNAK, has achieved a 25 percent reduction in illegal tobacco within a year of implementation, according to the Center for Research and Perspective Technologies in Moscow. Furthermore, it contributed to the legalization of 18 tobacco production and the dismantlement of 45 illegal ones.

    Russia’s accomplishments were recognized during the 10th Conference of the Parties (COP10) to the World Health Organization’s Framework Convention on Tobacco Control in Panama City this week.

    Chestny ZNAK tracks each cigarette pack in real-time, from the point of production to final consumption. The technology relies on digital data matrix codes assigned to each pack. This code contains information including production point, date, expiration and licensing documents. The information is updated at every stage of the product’s lifecycle until final sale. Illegal products are flagged by cash registers in stores, making them impossible to sell.

    To empower citizens and enhance transparency, a sophisticated mobile application has been introduced. This application allows users to verify the legality of various products, including tobacco and 16 other categories such as pharmaceuticals, dairy, footwear and photographic equipment.

    The system has also helped other sectors protect their businesses against brand piracy, contributing to a 12-fold decrease in substandard dairy products, a 20 percent reduction in the illegal perfume trade, and a more than a two-fold decrease in the illicit tire market, among other advances.

    Authorities estimate the tax impact of the system to be nearly RUB500 billion ($5.5 billion) and expect this figure to at least triple by 2025.

  • French Vote Paves Way to Disposable Ban

    French Vote Paves Way to Disposable Ban

    Credit: Laurence Soulez

    France has moved one step closer to a ban on disposable vapes. The Senate voted unanimously Wednesday to ban pre-filled, disposable e-cigarettes.

    “The marketing of these products is intended to attract young people with colors, fruit [flavors] and aromas, and low price,” Labour and Health Minister Catherine Vautrin told the chamber.

    While the Senators approved the law, they modified the National Assembly’s text to clarify the ban, according to media reports.

    The text would ban the “manufacturing, marketing, sale, distribution or offering for free” of the products and prohibit owning them with the intent to sell or distribute them, with a fine of up to €100,000 ($108,000).

    The two chambers will now need to combine their text and approve that version before it is sent to the European Commission, which will have six months to hand down an opinion.

    The government has said it hopes the ban will come into effect in September.

    Meanwhile, vaping and other recent smoking innovations are expected to be high on the agenda as country representatives gather in Panama City on Monday, tasked with revising the World Health Organization Framework Convention on Tobacco Control (FCTC), the first treaty ever adopted under the auspices of WHO, entered into force.

  • Past WHO Officials Highlight THR Strategy

    Past WHO Officials Highlight THR Strategy

    Photo: Alexander Ovsyannikov

    Harm reduction should be a central strategy of the Framework Convention on Tobacco Control (FCTC) in addition to the measures for demand and supply reduction, according to Robert Beaglehole and Ruth Bonita.

    Writing in The Lancet, the two former World Health Organization directors argue that while the FCTC has been influential in encouraging a global response to tobacco control, it has been challenging to show a strong and consistent association between the implementation of FCTC measures and smoking prevalence and cigarette consumption outcomes.

    The FCTC does not prohibit harm reduction approaches but leaves it up to member states to decide how to regulate e-cigarettes and other novel nicotine products. The WHO’s lack of endorsement of tobacco harm reduction limits healthier choices for the 1.3 billion people globally who smoke and who are at an increased risk of early death, according to Beaglehole and Bonita.

    The authors note that there is no scientific justification for WHO’s position that e-cigarettes and other novel nicotine products should be treated in the same way as tobacco products. This position, they argue, overlooks a risk-proportionate approach.

    “We believe WHO needs to provide positive leadership and technical support to countries as they consider the use of e-cigarettes and other nicotine delivery devices,” the authors write. “WHO’s current approach to these lower-risk product is to reward countries, such as India, for banning e-cigarettes; thirty-four countries, primarily low-income and middle-income countries, now ban e-cigarettes.”

    Beaglehole and Bonita note that, in some countries, substantial reductions in smoking prevalence have coincided with the uptake of novel nicotine products. In New Zealand, for example, the prevalence of adult daily smoking plummeted from 13.3 percent in 2017–2018 to 6.8 percent in 2022–2023 after e-cigarettes became widely available, a 49 percent decline in five years.

    In the same period, and with the support of the government and regulation of vaping, the prevalence of adult daily vaping increased from 2.6 percent to 9.7 percent. New Zealand’s recent decline in smoking occurred in the absence of any other major tobacco control policy, apart from the annual cost-of-living price increases, according to the authors. “The decrease in smoking during this period in New Zealand shows what can be achieved, and exceeds the WHO smoking prevalence reduction goals of 30 percent over 15 years from 2010 to 2025,” they write.

    The New Zealand 2022 smoke-free legislation includes a “tobacco-free generation”, a 90 percent reduction in smoked tobacco retail outlets, and compulsory denicotinization of retail tobacco. The New Zealand government, elected in November 2023, is committed to reaching the Smokefree 2025 goal of 5 percent (or less) smoking prevalence for the adult population, but intends to repeal the 2022 smoke-free legislation.

    However, because of the implementation timelines, fears that this repeal would jeopardize the Smokefree 2025 goal can be allayed, according to Beaglehole and Bonita. This is because none of the three headline measures would be expected to have an impact before 2025 and might have had negative unintended consequences. “Based on recent progress, New Zealand’s Smokefree 2025 goal looks likely to be reached by consent rather than coercion and by further support for switching to smoke-free nicotine products,” the authors note.

    Beaglehole and Bonita also highlight the success of other high-income countries in reducing smoking prevalence in association with the use of a range of lower-risk nicotine delivery devices to complement FCTC demand and supply reduction measures.

    Sweden, with a long tradition of snus use, has the lowest prevalence of adult daily smoking in the world, down to 6 percent in 2022, accompanied by low mortality from tobacco-related diseases.

    Norway has had similar success with reducing smoking prevalence in the context of increased use of snus and e-cigarettes, and in England vaping is helping adults to quit smoking. The substantial decline in cigarette consumption in Japan is associated with the rapid uptake of products that heat, rather than burn, tobacco.

    Less progress has been made in low-income and middle-income countries where tobacco control capacity and political will to advance tobacco control measures are weaker, and the potential of tobacco harm reduction is not being realized, according to the authors.

    Beaglehole and Bonita say two concerns suggest why tobacco harm reduction is not more actively embraced, despite its association with reduced smoking prevalence. The first is that, compared with cigarettes, where the damage has been known for more than half a century, the long-term effects of e-cigarettes are unknown.

    Although vaping may not be risk-free, especially for people who do not smoke, the risks of there being substantial long-term harm from the constituents of e-cigarettes are likely to be low, especially when compared with the damage caused by smoked tobacco, the authors point out.

    The second concern is that the widespread availability of e-cigarettes in the absence of adequate controls and regulations encourages youth nicotine dependence and enables the vaping industry to act unethically. Beaglehole and Bonita say there is little evidence to suggest that vaping leads to smoking among youth, and although the proportion of non-smoking youth who vape is increasing, it remains at a fairly low level.

    Stricter regulations, including enforcing sales restrictions, and appropriate health promoting campaigns are needed to prevent vaping by young people, according to the authors, but these measures must be balanced with the health needs of older adults who smoke and require support to quit.

    Beaglehole and Bonita acknowledge that there is understandable skepticism about the motives of the tobacco industry in selling smoke-free products while continuing to expand tobacco markets in low-income and middle-income countries. To remain profitable, they say, the tobacco industry will eventually need to migrate its global business to less harmful alternatives since cigarettes will no longer monopolize the delivery of nicotine.

    The authors express concern about the recommendations, found in COP10 background papers, to treat nicotine products as equivalent to cigarettes and regulating them in a similar way. This approach, they argue, is a retrograde step because they are not comparable products in terms of the damage they cause; after all, it is the burning of tobacco that causes harm, not nicotine. Worse, such a strategy would ultimately favor the global cigarette market and may discourage vaping, according to Beaglehole and Bonita.

    The focus, they insist, must remain on the central public health problem—the damaging health effects of tobacco consumption. “Reducing cigarette smoking is the most effective way to prevent tobacco-related deaths and tobacco harm reduction is the fastest and fairest way to lower smoking prevalence,” the authors write.

    “WHO needs to embrace these innovations in nicotine delivery. Countries that are reaping the benefit of tobacco harm reduction, such as New Zealand, Sweden, Norway, England and Japan, should encourage participating countries at COP10 to support proposals that will quickly reduce smoking rates. The world’s 1.3 billion people who smoke, half of whom will die early, deserve this leadership.”

     

  • Firms Recognized for Sustainability

    Firms Recognized for Sustainability

    Photo: lovelyday12

    Philip Morris International and Japan Tobacco have been recognized for their environmental initiatives.

    For the fourth consecutive year, PMI received a triple-A rating from CDP for its disclosures on climate change, forests and water security.

    PMI has maintained a position on CDP’s Climate A-List for the past 10 years, reflecting its commitment to transparency and performance as the company progresses toward achieving its science-based targets as well as carbon neutrality for scope 1 and 2 by 2025 and net zero by 2040 for scope 1, 2 and 3.

    PMI’s efforts to halt deforestation, moving to zero net deforestation in managed forests by 2030, have further been recognized by CDP, which placed the company on its Forests A-List for the fourth consecutive year. This is the fifth year that PMI has been featured on CDP’s Water A-List as the company works toward its water optimization targets, which include optimization of 10 million cubic meters of water in its tobacco growing areas by 2030.

    “External recognition from organizations like CDP encourages us to continue our transformation journey and commitment to sustainability. We are pleased PMI has received CDP’s triple-A distinction for the fourth consecutive time,” said Scott Coutts, senior vice president of operations, in a statement. “Clear and transparent reporting of our progress helps us find new opportunities for action, identify and tackle growing risks, and get ahead of regulatory and policy changes.”

    PMI is also committed to advancing the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and intends to publish its first TNFD-aligned report for financial year 2025. Accordingly, PMI has been included in an inaugural cohort of organizations that intend to become TNFD early adopters.

    “We recognize the urgency to address climate change and protect biodiversity, and this is why our decarbonization strategy and progress are closely tied to preserving natural ecosystems,” said Jennifer Motles, chief sustainability officer. “We are proud to be an early adopter of the TNFD framework and will be reporting on it in 2025, which builds on the work we have already done to incorporate climate-related risk and opportunities into our overall business strategy and disclosure efforts, following the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.”

    Japan Tobacco was recognized by CDP for its leadership in corporate sustainability for a fifth year in a row. The JT Group is one of 61 companies worldwide and 22 in Japan to be included on the Climate Change A-List and Water Security A-List out of more than 23,000 companies participating in the 2023 CDP environmental disclosure program. Overall, this inclusion marks the group’s sixth recognition for climate change, and fourth recognition for water security.

     “We are honored that the JT Group has been recognized on CDP’s A-List for a fifth consecutive year,” said JT Group Senior Vice President and Chief Sustainability Officer Hisato Imokawa, in a statement. “This inclusion reflects our continued efforts to reduce our environmental footprint and expand our transparency in disclosing information. ‘Living with the Planet’ is a key aspect of the JT Group Materiality, and we aim to achieve the sustainable relationship between nature, people and businesses through efforts to improve the impact of our activities on the environment. We are currently defining more ambitious targets for our environmental initiatives and plan to disclose them in early 2024. These targets will support our goals of contributing to the sustainable development of society by further fulfilling our responsibilities and maintaining the trust of our stakeholders.”

  • ‘BAT Unlikely to Buy Back Russian Assets’

    ‘BAT Unlikely to Buy Back Russian Assets’

    Image: Framestock

    British American Tobacco is unlikely to exercise its option to buy back its Russian assets, given the perceived risk of investing in Russia, reports Interfax.

    Following the 2022 invasion of Ukraine, many Western-headquartered firms pulled out of Russia. BAT sold its assets in Russia and Belarus to a consortium led by local management. The sale included an option to buy back the assets within two years.

    After the transaction, the assets were renamed ITMS Group. As of September 2023, ITMs was owned by BFI Holding of the United Arab Emirates, according to Russia’s Unified State Register of Legal Entities.

    BAT’s retreat from Russia depressed the company’s 2023 results. BAT reported revenue of £27.28 billion ($34.38 billion) a loss of £15.75 billion on Feb. 8, and attributed the declines over 2022 in part to the loss of its Russian business and its decision to write-down of the value of several U.S. cigarette brands to reflect the dimming prospects for combustible products.

    BFI Holding is owned by Faruk Yener, Oleg Barvin, Elena Zavarzina, Andrey Osavolyuk and Sergey Kudinov. Yener was general director of BAT for Russia, Turkey, the Caucasus, Central Asia and Belarus, while Barvin headed the company’s legal department.

    ITMS posted revenues in 2022 of RUB42.74 billion ($467.34 million) versus RUB38.94 billion in 2021, while net profit was RUB2.21 billion versus RUB1.73 million, respectively.

  • Flavors Help Save Lives

    Flavors Help Save Lives

    Image: Fotofabrika

    Today, the R Street Institute released a new report that explores how flavors are processed by the brain, especially as it pertains to tobacco and nicotine products. Using these findings, the author, Jeffrey Smith, resident senior fellow for integrated harm reduction policy at R Street, explains how flavor can influence behavior and why well-intentioned efforts to ban flavored tobacco and nicotine products can have unintended consequences in the fight to reduce smoking rates in the United States.

    This report comes at a crucial time as the debate over flavored tobacco and nicotine products continues at state, national, and international levels. Across the United States, policymakers are proposing or enacting flavor bans without fully appreciating the impact of their actions for adult smokers. And just this week, the World Health Organization’s Framework Convention on Tobacco Control is hosting their 10th session of the Conference of the Parties (COP10), where many expect the WHO to continue its crusade against flavored, reduced-risk nicotine products.

    To reduce the nearly 500,000 smoking-related deaths that occur each year in the United States, the CTP must take a scientifically driven approach that recognizes the neurobiological rationale for allowing a wide variety of flavored, reduced-risk products to be available to adults—while minimizing youth access.

    Smoking rates have declined in recent years and, under the Trump administration, the age to purchase tobacco products was raised to 21. This has reduced youth use, and continued enforcement will help lower rates even more. However, millions of adults in the United States still smoke combustible cigarettes to the detriment of their health.

    A number of tools exist to help these individuals quit smoking. Flavor, for example, has been shown to help move adult smokers away from combustible cigarettes to alternative, reduced-risk products. This makes sense on the surface; if it tastes good, then it’s more appealing. However, in R Street’s report, author Jeffrey Smith goes far deeper and explains the neurobiological connections between flavor and behavior. While adults may seek tobacco flavored products to initially switch, other flavors help them maintain abstinence from cigarettes. In the end, flavor will save more lives, according to Smith’s research.

    “To reduce the nearly 500,000 smoking-related deaths that occur each year in the United States, the FDA Center for Tobacco Products (CTP) must take a scientifically driven approach that recognizes the neurobiological rationale for allowing a wide variety of flavored, reduced-risk products to be available to adults—while minimizing youth access,” said Smith in a statement. “It is essential that the CTP approve non-tobacco-flavored, reduced-risk products.”

  • Product Mix, Demand Boost Universal Income

    Product Mix, Demand Boost Universal Income

    Photo: Tobacco Reporter archive

    Universal Corp. reported operating income of $153.8 million for the nine months that ended Dec. 31, up 20 percent over the comparable period in 2022. Tobacco operations contributed 148.9 million in income, 25 percent more than in the first nine months of the previous year. Universal attributed the performance of its tobacco operations largely to higher prices and a more favorable product mix, partially offset by lower tobacco sales volumes.

    “Our tobacco business continued to perform very well, driven by a favorable product mix and strong demand from our customers,” said Universal Chairman, President and CEO George Freeman III in a statement.

    “Improved margins, larger crops in Africa, and strong tobacco shipments in line with our expectations benefited our results in the nine months and quarter ended Dec. 31, 2023, compared to the same periods in fiscal year 2023.

    “Global leaf supply for all types of leaf tobacco continues to be tight, and as of December 31, 2023, our uncommitted tobacco inventory was at a low level of 8 percent. While we expect global leaf tobacco supply to remain tight in fiscal year 2025, in part due to El Nino weather conditions, we believe the strength of our diverse global footprint will help us satisfy our customers’ leaf tobacco needs.”

    Freeman also expressed satisfaction with the progress made by Universal’s ingredients business, particularly with the expansion of the company’s factory in Lancaster, Pennsylvania, USA, and the advancement in achieving Universal’s sustainability agenda. The company recently published its 2023 sustainability report and announced its participation in a solar project that it believes will help Universal reduce its operational greenhouse gas emissions by a third by 2030.