Category: Featured

  • Profits Up at Indian Cigarette Makers

    Profits Up at Indian Cigarette Makers

    Image: RODWORKS

    ITC’s reported a profit of INR55.72 billion ($670.3 million) for the three months that ended Dec. 31, up nearly 11 percent over the comparable 2023 period, the company announced on its website.

    The consumer goods giant benefited from higher demand for its cigarettes as a crackdown on the smuggling of international cigarette brands reduced competition. A sharp escalation in costs of leaf tobacco and certain other inputs, along with increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing.

    The company’s cigarette business, which contributes more than 40 percent of ITC’s top line, grew 3.6 percent over the period. Its paperboards, paper and packaging business, by contrast, struggled with competition from China and sluggish economic conditions in some of its export markets. The segment’s revenue declined almost 10 percent.

    ITC’s hotel business, which the conglomerate plans to spin off into a separate entity, reported  an 18 percent jump in revenue, driven by a strong revival in domestic tourism and heightened demand from corporate bookings.

    ITC competitor Godfrey Phillips India (GPI) also reported improved performance for the third quarter, according to Reuters. The company posted a consolidated net profit of INR2.12 billion, up 6.6 percent over the comparable 2023 quarter. Total revenue from operations rose 34 percent to 14.88 billion rupees, with the company’s core cigarettes segment registering a growth of 37 percent.

    GPI attributed its performance to growth in its core segment and easing expenses. The company manufactures and distributes Marlboro-branded cigarettes under a license agreement with PMI.

    The growth in the cigarette segment was led by the Marlboro Compact, which is priced at INR10 apiece.

  • Zimbabwe Exports Up

    Zimbabwe Exports Up

    Photo: Taco Tuinstra

    Zimbabwe earned nearly 3.5 times as much from tobacco exports in January than it did in the same month of 2023, reports The Herald.

    The country exported leaf worth $274.7 million last month, compared with $80.9 million a year ago. The golden leaf raked in just over $1.2 billion from the more than 233 million kilograms exported in 2023.

    According to the Tobacco Industry and Marketing Board, exporters shipped 37.8 million kg to date this year, with the bulk of leaf going to China, which has so far imported 30.2 million kg valued at $248.8 million. The average price was $8.24 per kg.

    African countries imported the second largest amount of Zimbabwean tobacco at 3.2 million kg worth $9.3 million at an average price of $2.89 per kg.

    European Union countries imported 1.3 million kg of tobacco from Zimbabwe valued at $2.6 million at an average price of $2.09 a kg.

    For next season, Zimbabwe’s tobacco growers have thus far planted 113,101 hectares, compared to 117,645 ha in the same period last year.

    The decrease in tobacco planting is largely attributed to the delayed start of the rainy season.

  • China Tobacco Manager Pleads Guilty to Corruption

    China Tobacco Manager Pleads Guilty to Corruption

    Image: waldemarus

    A former deputy manager of China Tobacco Yunnan Industrial Co. pleaded guilty on Jan. 25 to taking more than CNY354 million ($50 million) in bribes, reports China Daily.

    Prosecutors accused Gu Bo of taking advantage of his positions from 1999 to 2018 to assist others in their business activities in return for illegal payments.

    Gu was placed under disciplinary review and supervisory investigation in January 2023. He is the fourth China Tobacco Yunnan Industrial official to be investigated for corruption since last year.

    In 2023, authorities probed the activities of Zhang Shuichang, Zhu Shaoming and Wu Yi.

  • Kiwi Ministers Asked to Disclose Tobacco Links

    Kiwi Ministers Asked to Disclose Tobacco Links

    Photo: slexp880

    Health activists have asked New Zealand’s government ministers do disclose any links to the tobacco industry, noting that the politicians’ rhetoric is strikingly similar to the industry’s key talking points, reports the New Zealand Herald.

    The call comes follows the dramatic reversal of New Zealand’s generational tobacco ban legislation by the country’s recently installed coalition government. Last week, said Associate Health Minister Casey Costello drew fire for suggesting a temporary halt to tobacco tax increases in consideration of smokers’ socioeconomic backgrounds—an argument that has also been raised by tobacco allies on occasion.

    In a briefing published Jan. 31 by the Public Health Communications Center, three University of Otago public health academics highlight links between government members of parliament and the industry and similarities between their public statements.

    The paper points out that the government is a signatory to the World Health Organization’s Framework Convention on Tobacco Control, which requires member states to engage with tobacco companies only for regulatory purposes, while recording and disclosing any interactions.

    Janet Hoek, the co-director of smoke-free research group Aspire2025, stressed she and her colleagues were not accusing ministers of a conflict of interest. “Our call is simply for full transparency,” she was quoted as saying.

    According to Hoek, there is little popular support for the government’s repeal of the smoke-free legislation, which would have reduced the number of retailers selling tobacco, reduced nicotine levels in cigarettes and banned sales to anyone born after 2009.

    The paper lists the government’s past and current links to the industry, including two former NZ First staffers, David Broome and Apirana Dawson, who had gone on to work at tobacco giant Philip Morris International.

    Under questioning in Parliament on Jan 30, Prime Minister Christopher Luxon said he was not aware of any ministers receiving donations from anyone associated with the tobacco industry. He added he expected all ministers would comply with their obligations to report potential conflicts.

  • Russian Scientists Create Reduced-Nicotine Tobacco

    Russian Scientists Create Reduced-Nicotine Tobacco

    Image: Elyena Grigorova

    Scientists from Russia’s Institute of Cytology and Genetics have created a reduced-nicotine content tobacco.

    “Tobacco synthesis genes are associated with key life processes of the plant,” said Sofya Gerasimova, senior researcher at the Institute of Cytology and Genetics at the Siberian Branch of the Russian Academy of Sciences. “We modified tobacco into a plant with an inherited reduced-nicotine content.”

    The two “most promising methods” for reducing the nicotine content were patented, according to nsk.kp. The scientists believe modified tobacco could serve as a food source for insects and that it will have a positive effect on the human body. 

  • FDA Warns More Sellers of Flavored Vapes

    FDA Warns More Sellers of Flavored Vapes

    The U.S. Food and Drug Administration has again issued warning letters to several small business owners for selling flavored disposable vaping products.

    The regulatory agency issued letters to 14 online businesses for selling unauthorized e-cigarette products. The warning letters cite the sale of disposable e-cigarette products marketed under brand names, including Elf Bar/EB Design, Lava Plus, Funky Republic/Funky Lands, Lost Mary, Cali Bars, Cali Plus, and Kangvape.

    “These warning letters were informed by FDA’s ongoing monitoring of multiple surveillance systems to identify products that are popular among youth or have youth appeal, an agency press release states. “Findings from the 2023 National Youth Tobacco Survey found that more than 50 percent of youth who use e-cigarettes reported using the disposable e-cigarette brand Elf Bar; in 2023, the manufacturer of Elf Bar began marketing the product under the name EB Design.”

    In addition, the brands Lava Plus, Funky Republic/Funky Lands, Kangvape, Cali, and Breeze were identified as popular or youth-appealing by the agency following a review of retail sales data and emerging internal data from a survey among youth, according to the agency.

    Retailers receiving warning letters sold or distributed e-cigarette products in the United States that lack marketing authorization from the FDA violate the Federal Food, Drug, and Cosmetic Act.

    Warning letter recipients are given 15 working days to respond with the steps they will take to correct the violation and to prevent future violations. Failure to promptly correct the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties.

    As of Jan. 30, 2024, FDA issued more than 440 warning letters and 88 CMPs to retailers for the sale of illegal e-cigarettes, including through a series of nationwide inspection efforts of brick-and-mortar retailers, according to the release.

    Earlier this week, the FDA issued complaints for civil money penalties (CMPs) against 21 brick-and-mortar retailers for selling unauthorized Esco Bars e-cigarettes.

    In a press release, the agency stated that it had previously issued each retailer a warning letter for their sale of unauthorized tobacco products. However, follow-up inspections revealed that the retailers had failed to correct the violations.

    The agency now seeks the maximum penalty of $20,678 from each retailer.

  • FDA Appeals Premium Cigar Ruling

    FDA Appeals Premium Cigar Ruling

    Photo: poco_bw

    The U.S. Food and Drug Administration on Jan. 31 appealed an August 2023 court ruling vacating the agency’s decision to regulate premium cigars, reports Halfwheel.

    The court ruling stemmed from a lawsuit filed by the Cigar Association of America, the Cigar Rights of America and the Premium Cigar Association (PCA).

    In 2022, Judge Amit Mehta issued an opinion examining the rulemaking record and detailing the FDA’s failure to address evidence in the record showing that premium cigars have different usage patterns, with different resulting health effects, than other cigars. Mehta later ruled that the FDA’s mishandling of significant questions that the FDA itself asked in its proposed rule merited vacating it, as the FDA never made a nonarbitrary decision to regulate premium cigars.

    In its appeal, the FDA urges the court to elevate deference to the agency’s “scientific judgment” over its duty of explanation under the Administrative Procedure Act. The FDA also argues that Mehta should have sent the flawed rule back to the agency to fix it while allowing the FDA to continue regulating premium cigar retailers and manufacturers under the arbitrary rule in the meantime.

    In a statement, the PCA said it would be responding to the FDA’s arguments and defending Mehta’s opinion in a forthcoming filing with the D.C. Circuit Court. A hearing before three judges of the appellate court is likely to follow.

  • Murray Garnick to Retire From Altria

    Murray Garnick to Retire From Altria

    Photo: Altria Group

    Murray R. Garnick, executive vice president and general counsel of Altria Group, will retire on April 1. Garnick’s career spanned nearly 40 years in support of Altria and its family of companies. He joined Altria Client Services in 2008 as senior vice president and associate general counsel after more than two decades representing Altria and its subsidiaries in litigation matters as a partner at the law firm of Arnold and Porter.

    “Under Murray’s guidance, we have successfully managed significant litigation challenges and established Altria as a leading advocate for tobacco harm reduction policies in the U.S.,” said Altria CEO Billy Gifford in a statement. “In addition to Murray’s significant individual contributions, his passion for developing world-class legal and regulatory talent has contributed tremendously to Altria’s success. I am grateful for his many contributions, and I wish him the best in retirement.”

    Robert (Bob) A. McCarter will become Altria’s executive vice president and general counsel effective April 1, 2024. Currently, McCarter serves as senior vice president and associate general counsel for Altria Client Services, where he supervises the management of tobacco, health and other litigation. McCarter joined Altria in 2015 following 18 years in private practice representing Altria and its subsidiaries in litigation matters.

  • Pax Labs Sues ALD Over Patents

    Pax Labs Sues ALD Over Patents

    Photo: utah51

    Pax Labs has filed a lawsuit against the vape brand Stiiizy and its manufacturer ALD Group for allegedly infringing four vape pen patents, reports Bloomberg Law.

    Stiiizy and Hong Kong-based ALD make vaporizing devices, including a cartridge and battery, that utilize methods similar to Pax Labs’ patents, according to separate complaints filed in the U.S. District Court for the Central District of California.

    Pax Labs said the companies infringed U.S. Patents 11,369,756, 11,369,757, 11,766,527 and 11,759,580, which deal with methods for leak-resistant vaporizer cartridges and apparatuses.

  • Altria Reports 2023 Results

    Altria Reports 2023 Results

    Photo: Maurice Norbert

    Altria Group reported net revenues of $5.98 billion for the fourth quarter of 2023 and net revenues of $24.48 billion for the full fiscal year, down 2.2 percent and 2.4 percent, respectively, from the comparable 2022 periods.

    The decrease in the fourth quarter and the full year were both driven primarily by lower net revenues in the smokable segment, which were partially offset by higher net revenues in the oral products segment.

    “It was a pivotal year for Altria as we made significant progress in pursuit of our Vision by enhancing our smoke-free product portfolio while our businesses performed well in a challenging environment,” said Altria CEO Billy Gifford in a statement. “We grew adjusted diluted EPS by 2.3 percent and continued our long history of rewarding shareholders by delivering nearly $7.8 billion in dividends and share repurchases.”

    “Our plans for 2024 include a continuation of our strategy to balance earnings growth and shareholder returns with strategic investments toward our Vision. We expect to deliver 2024 full-year adjusted diluted EPS in a range of $5.00 to $5.15, representing a growth rate of 1 percent to 4 percent from a $4.95 base in 2023.”