Category: Other Tobacco Products

  • Call for smoke-free homes

    Call for smoke-free homes

    In the UAE, 8.5 percent of those 12 to 14 years of age are smokers, according to a story in The National citing UAE University figures.

    The story did not say how smokers were defined.

    A study by the university that was presented at the International Society of Addiction Medicine conference in Abu Dhabi on Friday, was said to have shown that children in the UAE were ‘inhaling their first hit of tobacco aged nine or younger’.

    This had prompted calls for households to become smoke-free, though it wasn’t clear from the story who was making these calls.

    “We should focus on tobacco use at a young age,” said Dr. Syed Shah, an associate professor at the university’s Institute of Public Health. “Otherwise it will be too late.”

    His study looked at 1,186 Arab pupils between the ages of 12 and 18, of which 51.4 percent were Emirati. More than a fifth of boys smoked shisha and 21.9 percent smoked cigarettes.

    Meanwhile, a study of female students at Zayed University by the university found similar results in respect of underage smoking. In the anonymous survey, a ‘significant number’ of the 552 respondents were said to have tried their first cigarette or shisha at age nine or younger.

    “There is a high prevalence now for shisha smoking and I think the most alarming aspect of this is the early onset,” said Dr. Heba Barazi, an assistant professor at Zayed University’s College of Natural and Health Sciences.

    This early onset was consistent with the findings of a World Health Organization survey that was done between 13 and 15 years ago, she said. In other words, little had changed. “In ten years they knew this and nothing has been done about that,” she added.

  • SM’s sales up and down

    SM’s sales up and down

    Swedish Matches snus shipments in Scandinavia during the three months to the end of September, at 61.7 million cans, were increased by about two percent on those of the three months to the end of September 2016, 60.6 million cans.

    During the same periods, shipments of moist snuff in the US were down by about six percent to 33.6 million cans, while shipments of snus and nicotine pouches outside Scandinavia were increased by 74 percent to 3.5 million cans.

    Swedish Match’s share of the Swedish snus market was down by 2.2 percentage points to 64.9 percent, while its share of Norway’s snus market was down by 1.2 percentage points to 52.0 percent.

    The company’s cigar shipments during the three months to the end of September, at 405 million pieces, were increased by about one percent on those of the three months to the end of September 2016, 402 million pieces.

    During the same periods, the company’s chewing tobacco shipments, excluding contract-manufacturing volumes, fell by about six percent to about 1,636,000 pounds.

    Sales increased by one percent in local currencies, but reported sales declined by one percent to SEK4,069 million for the third quarter.

    “This has been an exciting quarter for Swedish Match, where we have further demonstrated our commitment toward our vision of a world without cigarettes as evidenced by our efforts in modern smokeless products,” said CEO Lars Dahlgren in reporting Swedish Match’s third quarter and nine-months results.

    “We have been introducing innovative new products, and continued to expand in new markets, organically as well as via the acquisition of the Danish smokeless tobacco business, V2 Tobacco.

    “In the world around us, there exists a continuously growing interest, from consumers, industry players and certain important policymakers, in tobacco harm reduction. Where regulators have yet to acknowledge a more science-based approach to tobacco regulation, we have continued to make our voice and solid fact base heard.

    “At the same time, we have continued our strong commitment toward our more traditional businesses, often in very competitive environments.

    “For the quarter, sales and profit from product areas demonstrated resilience. Currency translation effects turned negative this quarter but sales grew in local currencies for both snus and moist snuff and other tobacco products…”

  • PM USA’s volume down

    PM USA’s volume down

    Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 30,828 million, was 6.2 percent down on that of the third quarter of 2016, 32,864 million.

    Marlboro volume was down by 6.0 percent to 26,445 million, while the volume of the company’s other premium brands was down by 6.9 percent to 1,567 million. Its discount-brand volume was down by 7.3 percent to 2,806 million.

    In presenting its third-quarter and nine-month figures, Altria said that total cigarette industry volumes had declined by an estimated 3.5 percent during the third quarter. ‘The smokeable products segment’s reported domestic cigarettes shipment volume declined by 6.2 percent in the third quarter, primarily driven by the industry’s rate of decline, trade inventory movements, retail share declines and one fewer shipping day,’ it said. ‘After adjusting for trade inventory movements and calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 4.5 percent.’

    Meanwhile, Altria reported that for the first nine months of 2017, total cigarette industry volumes had declined by an estimated 3.5 percent. ‘The smokeable products segment’s reported domestic cigarettes shipment volume decreased by 4.0 percent, primarily driven by the industry’s rate of decline, retail share declines and one fewer shipping day, partially offset by trade inventory movements,’ it said. ‘When adjusted for trade inventory movements and calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 4.0 percent.

    PM USA’s domestic-market retail share during the three months to the end of September, at 50.5 percent, was down by 0.6 of a percentage point on that of the third quarter of 2016.

    Marlboro’s market share was down by 0.5 of a percentage point to 43.2 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 2.7 percent, and the share of its discount brands was unchanged at 4.6 percent.

    Middleton’s cigar shipment volume during the first three months, at 385 million, was increased by 6.6 percent on that of the three months to the end of September 2016, 361 million, as Black & Mild volume rose by 6.7 percent to 381 million and other-cigar volume was unchanged at four million.

    USSTC’s domestic smokeless products shipment volume during the third quarter, at 212.6 million cans and packs, was down by 1.8 percent on that of the three months to the end of September 2016, 216.4 million.

    Shipments of Copenhagen and Skoal, taken together, were down by 2.0 percent to 195.7 million packs and cans, while shipments of other brands were increased by 1.2 percent to 16.9 million packs and cans.

    USSTC reported that its domestic shipment volume had declined by 1.8 percent and 1.7 percent in the third quarter and first nine months of 2017 respectively, driven primarily by declines in sales of Skoal. ‘After adjusting for trade inventory movements and other factors, USSTC estimates that its domestic smokeless products shipment volume declined approximately three percent in the third quarter and 1.5 percent for the first nine months,’ Altria said. ‘USSTC estimates that the smokeless products category volume grew approximately 0.5 percent over the past six months.’

    USSTC’s retail share of the domestic smokeless products market during the three months to the end of September, at 53.8 percent, was down by 1.1 percentage points.

    The share of Copenhagen and Skoal, taken together, fell by 1.2 percentage points to 50.4 percent, while the share of the company’s other brands increased by 0.1 of a percentage point to 3.4 percent.

    Altria’s 2017 third-quarter reported diluted earnings per share (EPS) were increased by 73.2 percent to $0.97 on those of the third quarter of 2016, with comparisons affected by special items. Third quarter adjusted diluted EPS, which excludes the impact of special items, increased by 9.8 percent to $0.90.

    “Altria delivered outstanding performance in the third quarter and for the first nine months of 2017 as our core tobacco operating companies generated strong income growth,” said Marty Barrington, Altria’s chairman, CEO and president. “Our financial performance continues to strengthen in the second half, as we expected.”

    “And we continued to focus on rewarding shareholders through the first nine months, paying out more than $3.5 billion in dividends and repurchasing nearly $2.4 billion in shares. In August, Altria’s board of directors voted to increase our quarterly dividend per share by 8.2 percent.”

    “The business is performing well in a competitive environment, and we continue to expect full-year adjusted diluted EPS growth of 7.5 percent to 9.5 percent.”

  • Eastern’s production up

    Eastern’s production up

    Egypt’s Eastern Company said yesterday that it had produced 83 billion cigarettes during the 2016-17 fiscal year (July 1, 2016 to June 30, 2017), up from 80 billion during the previous year, according to an Ahram Online story citing the Al-Ahram Arabic news website.
    In a filing to the Egyptian stock Market, the company said that the value of its sales on the local market had been EG£36.7 billion during 2016-17, up from EG£ 28.5 billion during the previous year.
    Exports, meanwhile, were worth EG£103.5 billion in 2016-17, up from EG£66.6 billion during 2015-16.
    In January 2016, the US dollar was valued at about EG£8, while in January 2017 it was valued at EG£18 following the Egyptian government’s decision to devalue the currency.
    Eastern said it had produced 16,800 tons of shisha tobacco during 2016-17, down from 17,600 tons during the previous year.
    About 20.2 percent of Egyptians over the age of 15 are smokers, according to figures for 2016 released by the state-run statistics agency CAPMAS. So of Egypt’s population of 93 million, an estimated 12.6 million people are smokers.
    About 23.8 percent of people aged 25 to 44 are smokers.
    The average annual spend on smoking for households where all members smoke is EG£3,968.

  • Neutral-packaging challenge

    Neutral-packaging challenge

    Swedish Match is taking the Norwegian state to court as it seeks an injunction to delay, in respect of snus, the introduction of what is being referred to as ‘neutral’ tobacco packaging, according to a story in thelocal.no quoting an NTB news agency report.

    A law, which came in to effect on July 1, requires all tobacco companies to offer all their tobacco products in only neutral [standardized or plain] packaging by July 1, 2018.

    But Swedish Match wants a temporary injunction to be imposed in respect of snus.

    The company, which is due in court on Monday, claims that the requirement set down by the Norwegian government is in breach of EEC free trade rules, and that the deadline for the new packaging must therefore be delayed until the EEC issue has been resolved.

    “Regulation that constitutes such a strong intervention as standardized packaging is not in proportion to the possible health risks associated with snus,” Swedish Match spokesperson Patrik Hildingsson told the VG newspaper earlier this year.

    But Norway’s minister for health Bent Høie told the newspaper that he was not surprised by lawsuits from tobacco companies in the wake of the regulation introduced on July 1.

    “They did it in Australia, France and the United Kingdom, and lost everywhere,” Høie told VG.

  • SM acquires V2 Tobacco

    SM acquires V2 Tobacco

    Swedish Match has acquired V2 Tobacco, previously a privately-owned smokeless-tobacco company primarily active in Europe.

    The purchase price was not disclosed in a press note posted on Swedish Match’s website today, but V2 Tobacco, which was started in 2006 and which has its headquarters in Silkeborg, Denmark, was said to have an annual turnover ‘in the range of’ SEK160 million.

    Annual production at V2 Tobacco, which has about 60 employees and which is said to have modern and flexible production facilities, is ‘close to 20 million cans of chew bags and snus combined’.

    The company has a brand portfolio that includes Thunder, Offroad, and Phantom.

    It is active in more than 25 markets, but its main markets are Denmark, Sweden and Norway, Germany, Switzerland and on-line. It is said to have a small but growing presence in ‘certain other European markets’.

    ‘In this transaction, Swedish Match will acquire 100 percent of the shares in V2 Tobacco (production and sales/marketing in Denmark),’ the press note said.

    ‘The current CEO and one of the founders of the company, Marc Vogel, has agreed to remain with the company, which will be operated for the most part independently from other Swedish Match businesses.

    ‘The closing date of the transaction is August 31st.’

    “We are very excited about this transaction,” said Lars Dahlgren, president and CEO of Swedish Match. “A vibrant and independent V2 Tobacco business fits very well as a complement to our existing organization. V2 Tobacco´s modern and adaptable production allows Swedish Match improved flexibility and expanded opportunities to adapt to changing consumer desires, helping Swedish Match to move further toward its vision of a world without cigarettes.”

    Meanwhile, Vogel said it had been important to find a buyer who shared V2 tobacco’s values and ambitions for the future.

    “With their long history, competence and their extensive work with product quality, Swedish Match will give our operation in Silkeborg new and better opportunities to develop and grow,” he said.

  • EU eyes extending excise

    EU eyes extending excise

    The EU Commission has said that it is looking at whether the tobacco excise system should be extended to cover unmanufactured tobacco.

    The Commission made its comment in reply to two members of the EU parliament who had asked what the Commission was doing to fight ‘bulk tobacco inflows into the European Union’.

    In a preamble to their question, the Italian MEP, Fulvio Martusciello, and the Slovenian MEP, Patricija Šulin, said the fight against the illegal tobacco trade centered largely on manufactured cigarettes.

    However, according to a study carried out by the Universita’ Cattolica del Sacro Cuore and Transcrime in December 2016, the illegal trade in bulk tobacco, or the sale of unbranded cut tobacco outside legitimate channels, had been increasing.

    More than €870 million per year was lost in eight EU member states alone, a considerable proportion because of inflows from outside the EU, mainly from Bosnia and Herzegovina.

    The illegal tobacco trade was in breach of the competition laws laid down in Article 101 of the Treaty on the Functioning of the European Union, but bulk tobacco had never been cited as a growing problem.

    ‘In the light of the above information, what is the Commission doing to fight bulk tobacco inflows into the European Union?’ they asked.

    In answering, the Commission said it considered smuggling of bulk tobacco a growing and worrying phenomenon. The diversion of bulk tobacco of both EU and non-EU origin to be used for illicit cigarette production or roll-your-own cigarettes had been identified as an increasing problem within the EU and caused losses of excise duties for member states.

    The Commission said it had adopted in 2013 a comprehensive strategy to combat the illicit tobacco trade and had been implementing it in close co-operation with member states.

    ‘In addition, to address more specifically the issue of bulk tobacco smuggling, the Commission is currently carrying out a review of Directive 2011/64 on the excise duty applied to manufactured tobacco,’ the Commission said. ‘One of the issues that the Commission is looking at in that context is whether to extend the excise system to raw tobacco, which is currently exonerated from excise duties.’

  • Boost for ban challenge

    Boost for ban challenge

    The Swedish government has chosen not to provide written observations to the European Court of Justice (ECJ) in relation to a case being brought to overturn the EU ban on the sale of snus outside Sweden, according to a press note issued on Monday jointly by the International Network of Nicotine Consumer Organisations (INNCO) and the NNA Sweden.

    The case (Case C-151/17) is being brought by Swedish Match, and the NNA UK has joined as an intervener, based on arguments related to consumers’ human rights and the right to health.

    ‘All EU member states were asked by the ECJ to submit opinions on a legal challenge by July 7 as part of the court process,’ the note said.

    ‘In June 2017, … INNCO received reliable information that the Swedish government were planning to submit an opinion to the ECJ identical to their previous EU statements on the health risks and impacts of snus use.

    ‘Based on Sweden’s historical position this was likely to contain scientifically incorrect information, bias and out-dated references, which would have severely impacted on the judicial process of the court.

    ‘INNCO and one of their member organisations – New Nicotine Alliance Sweden – launched a joint initiative aimed at averting such misinformation on snus being sent to the ECJ by Sweden, believing their previous oblique submission to the ECJ to be in part responsible for the ban being upheld by the court in 2004.

    ‘Seventeen INNCO international member organisations wrote individual letters to the Swedish government, outlining their objections and concern were Sweden to choose, yet again, to submit an incomplete and misleading opinion on snus to the ECJ.’

    The note said that snus had a 200-year history of use in Sweden without any verifiable evidence of serious adverse health effects. It remained the most widely-used and successful method of assisting smoking cessation.

    Sweden now had the lowest smoking rate in Europe. Swedish government data had shown that the proportion of smokers among men aged between 30 and 44 fell to five percent in 2016.

    ‘Overall, just eight percent of Swedish men now smoke on a daily basis – itself a record-low percentage – compared with a European Union average of just over 25 percent,’ the note said.

    ‘There is broad academic consensus that Sweden’s success is directly attributable to the broad migration from traditional cigarettes to snus.

    ‘EU-wide adoption of snus may have contributed towards saving over 300,000 lives per year since 1992 according to a report published 2017.

    ‘The opportunity for tobacco harm reduction is unprecedented.

    ‘Sweden is the only EU country in which citizens have legal access to Snus (having gained an exemption as part of their entry to the EU in 1995). Consequently, it is the only country in the world with access to reliable historical data and observations on long term snus use.

    ‘Sweden’s evidence is therefore invaluable to the ECJ and public health regulators currently deprived of qualitative snus data, in the forthcoming re-examination of the current EU snus ban.

    ‘We believe that INNCO’s global civil society initiative has been instrumental in influencing the Swedish government’s decision to offer no comment.

    ‘In so doing, they have chosen to place the value of health and respect for human rights above ideology.’

    ‘The Swedish government might have chosen to replicate their previous incomplete, opaque submission confirming their well-documented intolerance of all nicotine use. Choosing silence over misinformation was a courageous move in the right direction towards acknowledging harm reduction and human rights.’

  • Vaping bans on way

    Vaping bans on way

    Russia’s Health Ministry is preparing a bill that, if passed, would regulate vaping and hookah smoking in the country, according to a Pravda Online story.

    The bill, which is set to be drafted by February, is expected to include a ban on vaping and hookah smoking in bars and restaurants throughout Russia.

    Ministry officials were quoted as saying that the general idea behind the bill was that vaping should be regulated in the same way that tobacco smoking was regulated.

    The officials said that, currently, a lot of adolescents used both hookahs and vaping devices, and that these products were not regulated.

    Reportedly, the bill will limit the sale of hookah and vaping devices to people over the age of 18.

    The story said – though it wasn’t clear whether this had come from the officials or not – that it was worthy of note that ‘US scientists found deadly toxins in vaping smoke, where the concentration of dangerous substances exceeds maximum permissible indicators’.

    ‘Those making up to 250 puffs per day with 3.8-4.8-volt devices, inhale acrolein, formaldehyde and diacetyl in above the mark quantities,’ the story said.

    ‘The concentration of harmful substances in the rooms where vaping is allowed exceeds admissible indicators as well.’

  • Ban shows double standards

    Ban shows double standards

    Sri Lanka’s ban on chewing ‘smokeless tobacco’ has come under criticism by people who say that, in not banning smoking, the government is adopting double standards, according to a story by Chrishanthi Christopher for The Sunday Times.

    The government recently banned smokeless tobacco through a gazette notice after it was approved in parliament in April 2017.

    The notice banned the manufacture, sale and possession of all smokeless tobacco products, and mixtures that contain tobacco, including the betel quid, which has tobacco strips.

    However, the growing, chewing and selling of betel leaves are not banned.

    A recent World Health Organization survey was said to have shown that six percent of school children were chewing commercially-produced arecanut.

    The chairman of the National Authority on Tobacco and Alcohol, Dr. Palitha Abeykoon, said the survey had shown that many of the school children were addicted to arecanut, which they kept under their tongues and used for the high it could produce.

    The finding had necessitated the ban on smokeless tobacco products, he said.

    The aim of the ban was reportedly not to deprive people of their traditional betel chewing habits but from using tobacco in the betel quid.

    Chewing smokeless tobacco, unlike traditional betel chewing, was said to be ‘most dangerous and addictive, killing people within two years’.

    The smokeless-tobacco products, which were said to contain a mixture of arecanut, tobacco, sweeteners and spices, were said to come from India, Pakistan and Bangladesh.

    Interestingly, the story said, these products were banned in the countries that exported them.