The U.S. Food and Drug Administration (FDA) has asked a federal judge in Texas to delay the effective date of a rule requiring graphic health warnings on cigarette packages due to the outbreak of Covid-19, reports Reuters.
The FDA and tobacco companies that are suing the agency have asked the court to delay the effective date from June 18, 2021, to Oct. 16, 2021.
The EU Court of Justice (EUCJ) has rejected a legal challenge brought by the International Tax Stamp Association (ITSA) against the EU Tobacco Products Directive (TPD).
Brought in the 2018, the ITSA claim contends that that the TPD implementing regulations on traceability and security features do not conform to the World Health Organization (WHO) FCTC Protocol to Eliminate Illicit Trade in Tobacco Products.
The association believes that the TPD implementing regulation contravenes the FCTC Protocol’s Article 8. This article requires that the track-and-trace system for tobacco products is under government control, that duties should not be performed by or delegated to the tobacco industry and that public officials should interact with the tobacco industry and those representing its interests in tobacco track and trace only to the extent strictly necessary.
In May 2019, the EUCJ dismissed the claims on the grounds that ITSA could not challenge the EU track and trace system because it did not have “a direct interest” in the TPD implementing regulation.
The ITSA subsequently appealed this ruling citing the EUCJ’s “misunderstanding of certain basic facts”—but the appeal has now been rejected
ITSA Chairman called the ruling disappointing and curious. “The EUCJ determined that ITSA has no material interest in the directive’s derived regulation and the association’s claim was therefore not admissible,” he said. “ITSA members are independent of the tobacco industry and provide traceability systems as part of effective anti-illicit trade program, so how is it possible that ITSA and its members do not have a material interest in the regulations?”
The FCTC Protocol to Eliminate Illicit Trade in Tobacco Products came into force in 2018 and track-and-trace provisions must be implemented by its parties by 2023. The WHO has yet to define detailed requirements, which are scheduled to be discussed at the second Meeting of the Parties to the Protocol later this year.
The European Commission has committed to a review of the TPD in 2021.
The South Korean health ministry is revising the images used on cigarette packs to discourage smoking.
Nine of the 12 photos currently used will be replaced; “Warning images showcasing heightened risk of laryngeal cancer, sexual dysfunction and dangers posed by electronic cigarettes will be retained,” according to the Yonhap News Agency. “Images showing a greater chance of smokers contracting lung and oral cancer, heart disease, stroke and early death are set to be altered, along with images highlighting the dangers of secondhand smoking and smoking during pregnancy.”
The new images will take effect on Dec. 23 and remain in place for two years.
Under current regulations, 75 percent of a cigarette pack must be covered in warning images and text, and they must be revised every two years.
Anti-counterfeiting technology will continue to grow, according to a recent report cited by the International Hologram Manufacturers’ Association (IHMA).
The market for holograms is expected to grow by 27 percent over the next five years. The global anti-counterfeiting packaging market is expected to reach $133.72 billion by 2026 with a compound annual growth rate of more than 10 percent from 2021 to 2026.
“Digital solutions are a clear and growing addition to authentication solutions, sometimes in isolation, but within the holographic industry it’s the combination with packaging track-and-trace systems, among other solutions, that’s seen as the foreseeable future,” said Paul Dunn, IMHA chair. “In doing so, the opportunities for holograms to be at the forefront will drive sector growth.”
Most of us rarely see and rarely come into direct contact with some of the materials and activities that are causing the degradation of our environment, such as certain insecticides and manufacturing processes. But packaging is in our faces the whole time, so it attracts a level of public criticism that is perhaps out of proportion to that aimed elsewhere. Tobacco Reporter spoke with Paula Birch, global sales director, Parkside Flexibles, about this and other issues.
Tobacco Reporter: How would you describe the current state of the general environment—not concerned only with the tobacco industry or packaging? Is it, in your view, in robust health, in need of some TLC, worrisome, approaching a crisis, past repair…?
Paula Birch: Since the airing of the BBC Blue Planet II series, consumer awareness of the environment and the role humans have in destroying what is a very sensitive and balanced ecosystem has escalated. The situation in our view is worrisome, and some key actions by consumers and governments alike need to be taken around the world to avoid moving into a crisis situation in the next few years.
Do you think the tobacco industry’s packaging plays a significantly negative role in the environment?
Consumer concern about the environment has clearly thrown the spotlight onto the packaging sector. However, our view at Parkside is that this has been unnecessary and out of proportion to the issue. First and foremost, packaging protects and preserves goods along the supply chain, minimizing waste and the loss of valuable resources. It has an environmentally positive role in its fundamental functionality. However, not all packaging is created equal, and the industry can certainly be held to account in the design of packs that are overengineered, or “overpackaged,” using unnecessary materials in their primary design.
Today, packaging, and primarily single-use plastic packaging, is blamed for a lot of environmental damage. However, the main issue in reality is the consumerist society that we now live in creating demand for convenient and disposable goods, as well as poor human behavior in littering, which creates pollution and marine litter.
Packaging in the first place should be designed with minimum material use—assuring the product is not damaged or does not suffer in transit in terms of shelf life—and with due consideration given to its disposal route. Packaging should always be lightweight and made from renewable or recyclable polymers, and be fully recyclable at the end of its life, or compostable if not. This way we drive circularity in use and avoid the use of fossil fuels, which is clearly undesirable.
Are the companies you deal with, whether suppliers or customers, becoming more conscious of the need to protect the environment? Are they willing to pay the price of protecting the environment—assuming there is a price to pay in the short term?
Suppliers and customers are clearly addressing their corporate social responsibility and environmental objectives driven by the media, which is filled every day with consumer demands and environmental or climate change concerns. However, it is clear that, due to the higher costs associated with small-scale production, innovative new materials are often significantly more expensive than are incumbent materials and frequently have compromised performance attributes in contrast with those of the industry incumbents. We therefore do not see widescale adoption in the tobacco sector of these newer materials but do see a desire for the recyclability of current polymers, which we strive to provide.
The tobacco industry’s approach to packaging and the environment seems to have been fairly good, but would it be fair to say that it could do a lot better?
Yes, that’s fair, and the tobacco industry is not alone. All brands across FMCG [fast-moving consumer goods] see opportunities to change, but it comes at either a cost or pack performance penalty. The reason why many packaging formats and plastics in particular have become ubiquitous is because of their high-level functional attributes. They have simple structures that, for instance, make them lightweight but at the same time render them robust, puncture resistant, transparent and effective barriers to moisture and aroma. This is hard to replicate with mono-polymer structures suitable for recycling, for example. Innovation will continue and new breakthroughs will clearly be made in time, but if it were easy to switch, we have no doubt brands across the board would have done so already.
Perhaps it is the case that, even if the industry did do a lot better, that would not make a huge difference in the grand scheme of things—in the face of the problems we must confront. Is that fair, or is it too defeatist?
Clearly the planet is facing a significant challenge in dealing with climate change and we all have to do our bit to drive change. It is true that packaging seems to have become a target for consumer focus due to media attention and that since there are perhaps far more polluting industries—for example, transport and logistics—the focus is out of balance. However, the packaging industry does recognize it must use lightweight, recyclable, renewable and bio-based materials, and ensure that packaging is absolutely optimized throughout the supply chain, in order to regain consumer trust and deliver incremental changes as part of a societal shift.
What changes can the tobacco industry make to its packaging and packaging activities—from raw materials to retail—to reduce its negative impact on the environment?
The key, as outlined above, is minimizing resource use in the first place. Designing with the minimum amount of material and then seeking options that either incorporate renewable or recyclable materials in the design. From there it’s about ensuring that the disposal route is also optimized—the pack should be recyclable or compostable.
What changes is Parkside making to its tobacco-industry business to reduce its impact on the environment?
Parkside Flexibles is a global leader in the production of home and industrial compostable packaging films as an alternative solution to non-recyclable flexible packaging solutions that currently go to landfill. Flexible packaging has been difficult to recycle due to its inherent design utilizing multiple polymers either co-extruded or laminated to create the multifunctional performance requirements it delivers, such as barriers to gases, light, aroma, etc.
Flexible packaging is a fantastic packaging solution in that it is lightweight and therefore extremely efficient from a supply chain and carbon footprint perspective. However, many brands and consumers are seeking circularity in packaging design and it struggles to close this loop. Parkside has therefore invested over eight years in the research and development of compostable laminate solutions that have equivalent barrier, graphic and packing performance to common flexible packaging substrates and has successfully delivered fully accredited solutions for home and industrial composting scenarios. These solutions are perfectly suited to tobacco applications, and we are working with a number of brands that are interested in the compostable packaging format.
By Timothy S. Donahue
Packaging is important. More than just a fancy box for holding goods, packaging is on the front lines of authenticating products and educating consumers on everything from quality and consistency to product use. Connected packaging (often called smart packaging), including active, interactive and intelligent packaging, can help prevent problems such as the recent outbreak of what has been called e-cigarette or vaping use-associated lung injury (EVALI), according to experts.
“Packaging is one of the few ways in which you can communicate to your end consumer. Now, look at vapor and other highly regulated categories—like combustible cigarettes—you cannot do social media. You can do very little advertising,” says Jacopo D’Alessandris, CEO of E-Alternative Solutions (EAS), a major U.S.-based vapor and CBD manufacturer and supplier. “With limited communication avenues, packaging becomes an even more important aspect of the interaction and the kind of connections needed between the brand and the end consumer.”
The U.S. Centers for Disease Control and Prevention (CDC) and the U.S. Food and Drug Administration (FDA) have labeled black market THC cartridges containing vitamin E acetate as the source for the EVALI outbreak. The tainted THC blend has been found not only in homemade and counterfeit name brand THC cartridges but also in “hacked” pods—products that have been broken open and filled with illicit THC liquid, according to media reports. These “fake pods sold in our name are a threat to public health and safety,” the chief financial officer of a company that fell victim to such practices was quoted as saying.
“Clearly, packaging is the main vehicle for brands to communicate advice, warnings and promotional messages at the point of use,” says Chris Crawley, manager of business development in the Americas for Parkside Flexibles, an international packaging company. “In the case of the EVALI situation, packaging can carry key messages around health and safety in [the] use and avoidance of counterfeit products to support consumers and avoid the problem in the future.”
Currently, there is little regulation in place for the packaging of marijuana and CBD products, notably at the U.S. federal level where THC remains illegal. However, the FDA requires companies that wish to remain on the market after its May 12 premarket tobacco product application (PMTA) deadline to meet certain packaging standards.
“Packaging is a major part of the testing aspects of the PMTA,” explains D’Alessandris. “When we do our PMTAs, we want to make sure that the product doesn’t appeal to kids, to youth; we want consumers to know the product is authentic; and after people open the box, we want them to know how to use it. These are critical components that the FDA looks at from a behavioral standpoint.”
One example of active packaging is the quick response (QR) code. Customers scan the code with their phones to bring up information about the product. Active packaging was one of the earliest forms of connected packaging. This technology is easy to use, and most consumers understand how QR and traditional bar codes work.
D’Alessandris says that active packaging allows consumers to see required information prior to the point of sale, and QR codes can direct consumers to larger quantities of data that don’t fit on a standard sized package. Using QR codes allows the purchaser to be well informed and ensures the manufacturer is meeting all requirements.
“The QR code allows us to give the most information on a limited amount of space,” says D’Alessandris. “Using a QR code allows the consumer to know that the product is in fact what it says it is on the packaging. You can scan it, and you can see that the CBD levels, for example, are what they say they are on the box. Plus, we need to let consumers know that the level of THC is below the 0.3 percent threshold. That is legally required on a federal level. That information is also available for each batch, and you can find the information by scanning the QR code.”
However, the QR code can also be a source of fraud. There are several ways consumers can protect themselves, according to Crawley. “The QR reader app should always be downloaded from a reputable source. Where possible, the QR code should be checked that it has not been tampered with, e.g., a sticker over the code,” he says. “Customers should never enter personal or financial information into a website that they have been directed to, and if downloading security software, they should choose a smartphone or tablet that has a built-in QR code scanner to avoid problems.”
Some companies are incorporating more advanced technologies into their packaging to better connect with consumers. Interactive and intelligent packaging can collect information on consumer habits, behavior and other data. These can also include Bluetooth technology to send a text message when a battery is low and radio frequency identification technology (RFID) to potentially track vapor devices, including pods, even if it leaves the state it has been sold in, according to Crawley. RFID can also include buyer information, such as age, when captured at sale.
Interactive and intelligent packaging interacts directly with customers, allowing them to make informed decisions, according to D’Alessandris. These forms of packaging can also add another layer of protection against counterfeit products. Other tools for consumers to check product authenticity are holograms, lot codes and serial numbers. Holographic packaging makes the product stand out on the shelf and is hard to copy. Lot codes identify when and where a product was manufactured. They are mostly used for quality control and tracing purposes in manufacturing. Serial numbers, however, are one of the best ways to ensure a product is legitimate, says D’Alessandris.
“By using a serial number, you can do two things,” he explains. “One, of course, if there’s an issue with the product, there’s a recall. You can go and extract exactly that product and say, ‘Hey. There might be a problem with that batch. Let’s pull it out of the store so that there’s no risk.’ The serial number can tell you much more than a lot code. It can tell you the day it was made, what machine did it, and you can go back and see the liquid that was used. You can then trace it back to all the different components that were used in its production. So, if there’s an issue—which we’ve fortunately never had—you can always go back and isolate that batch and deal with it without risk for the consumer.”
Identifying information (e.g., a lot number or serial number) is placed on the packaging and often etched onto the product itself, such as with the Leap pods used with EAS’ Leap Vapor products. Etching is expensive, which makes it nearly impossible for a counterfeiter to mimic, according to D’Alessandris. It can also be used to interact with the consumer on a more personal level.
“Counterfeiters just don’t do it, and if they did, it would look different because they don’t have the same etching machine or the laser machine,” says D’Alessandris. “So, I think it helps in that regard. Plus there’s some regulatory, responsible things to do concerning traceability in your products. It’s a big differentiator, so we’re pretty proud of the fact that we have this. There’s also a double benefit for the consumer. They know that the product has been serialized, which means it’s uniquely done. We know it’s a legitimate product. Second, we just launched this rewards system. So, you can actually use this number to enter into a loyalty program. And then we know who you are and where you bought the product. And then we can engage with you on a consistent basis to reward you for your loyalty.”
Despite the current lack of rules, regulation for the CBD and marijuana industries is coming. California Governor Gavin Newsom signed an executive order in September 2019 mandating additional warning signs for vapor product packaging and retail displays. It also includes enforcement of regulations against selling counterfeit products. In Massachusetts, regulators are requiring that cannabis brands disclose all components in vapor cartridges sold at retail. In Oregon, licensed dispensaries are being asked to read labels on vapor products themselves. If the labels “lack clarity,” retailers are required to ask manufacturers to provide additional information.
EAS is using the various packaging options to create a database. The database can be used to better serve customers as well as provide information for future regulatory requirements. For example, the FDA requires post-market surveillance for any product it gives a marketing authorization.
“We’re going to use it for a lot of things. We will use it for our rewards program and other consumer options. But more importantly for us and [the] FDA, we’re going to use these packaging options (and actual user data) in our post-market surveillance activities. And because we’re building a database early, we’re going to have a nice, robust group of people that we can always go to and continue to evaluate the likelihood of things like youth exposure,” says D’Alessandris. “Packaging is a great way to access an information highway. We’re getting what we need. The consumers are getting what they need. Packaging gives us the ability to do so many things.”
Following customary closing conditions and local regulatory approvals, AR Packaging has completed its acquisitions of RLC Packaging Group, including indirectly a significant share in BSC Drukarnia Opakowan, and Nampak Cartons Nigeria.
Through these acquisitions, AR Packaging continues its development in line with the strategic plan to expand in selected segments and geographies. The acquisition of the Nigerian operation establishes a footprint in Africa and the group now has the capability to serve its customers from three continents.
AR Packaging has also acquired 24.1 percent of the shares indirectly owned by the management of BSC Drukarnia Opakowan. The group now owns 60.8 percent of the Polish company. BSC management will remain in place to ensure continuity in the business.
“We are very pleased to having received full clearance on the acquisitions and warmly welcome the new companies in our group,” said Harald Schulz, president and CEO of AR Packaging.
“This is a very important step in the development of AR Packaging, which will now encompass 28 plants in 13 countries with 5,500 highly experienced employees
“The customers of RLC Packaging, BSC and Nampak will benefit from our group’s unique product portfolio including multi substrate packaging for a wide range of applications”.
All acquired entities will be operating under the name AR Packaging.
LLFlex will open a 73,500-square-foot manufacturing facility in High Point, North Carolina, USA. The new plant will significantly expand LLFlex’s capacity and include equipment supporting its main business segments, packaging and industrial laminates.
The expansive, modern facility will initially employ approximately 30 new personnel and run two eight-hour shifts. Projected growth will create an estimated 15-20 additional jobs, bringing the total to around 50 employees over the next two years. The plant will be fully temperature and humidity controlled, and will be cGMP compliant, Foreign Trade Zone certified and ISO 9001:2015 accredited.
The plant will house high-speed, high-efficiency equipment for custom laminating, coating, embossing, and slitting to address growing product demand. The facility will utilize state-of-the-art automated slitting and packaging robotics to provide short lead times and customized solutions.
“The new facility is a culmination of our commitment to customer service, production excellence and market share growth,” said Victor Dixon, CEO of LLFlex.
“The new space, new equipment and new team members all add value in terms of manufacturing expertise, quality control, innovative product ideation and value-added industry partnerships. Each of these strengths has allowed LLFlex to offer optimized customer service, and helped reaffirm the company’s legacy as a leader in the industries it serves.”
Phillip Morris International (PMI) insists that, despite consumer complaints, its cigarettes in Saudi Arabia taste the same as they did before the introduction of generic tobacco packaging in the kingdom, reports Arabian News.
Since the implementation of plain packaging in August, a number of smokers have reportedly complained to the Saudi Food and Drug Authority (SFDA) about a perceived difference in cigarette quality.
The SFDA has sent samples to product-testing lab Eurofins to see if there has been any change in the quality of cigarettes over the past two years. It also asked PMI and other cigarette companies for clarification.
“Not only do we abide by all applicable regulations, we also apply stringent and consistent global policies, standards and good manufacturing practices with respect to the machinery, ingredients, safety and quality for all our products, across all our facilities,” PMI said in a statement.
“There has been no change to the ingredients, manufacturing processes, quality and taste of tobacco relating to our products in the Saudi market before and after the implementation of the plain packaging regulation mandated by the SFDA.”
PMI cigarettes sold in Saudi Arabia are manufactured in Germany, Poland and Turkey.
Hoffmann Neopac, a global provider of plastic and metal packaging, has acquired CM Packaging in Dronten, Netherlands, for an undisclosed sum. As of Jan. 1, 2020, the company intends to operate as a single entity.
Hoffmann Neopac is also investing in a three-piece can making line at CM Packaging.
Andreas Geiger, former CTO of Hoffmann Neopac, will assume leadership of the metal packaging division as managing director. The overall sales team will be led by Tomas Pivko, currently head of sales, tins at Hoffmann Neopac. The three owners of CM Packaging will remain with the company.
“The team at CM Packaging has been a tremendous partner through the years, and with them joining the Hoffmann Neopac family we now have a production site in the EU in the metal sector and can also successfully implement our internationalization in this area,” said Mark Aegler, CEO of Hoffmann Neopac.
“The acquisition of CM Packaging by Hoffmann Neopac will combine the clear strengths of both companies and improve our position in an increasingly challenging market,” said Herbert van de Beek, sales and marketing director of CM Packaging. “It will also further strengthen our service and development power, which is a benefit to our customers.”