Category: Paper

Rolling With The Punches

Photo: Republic Brands
Rolling paper manufacturers benefit from pandemic-related downtrading and moves to legalize cannabis.
By Stefanie Rossel
With Covid-19 refusing to clear the stage and Russia invading Ukraine, crisis appears to have become the new normal. For many industries, business as usual ceased when the pandemic broke out two years ago, bringing about an economic slump. Worldwide, consumers have had to cope with lower disposable incomes. Such a development often prompts smokers to switch from expensive factory-made cigarettes to more affordable roll-your-own or make-your-own products—and, indeed, manufacturers of cigarette rolling papers have noted a positive effect on their businesses.
“Speaking exclusively from a business perspective, we had two extremely strong years with record sales levels,” relates Santiago Sanchez, executive president of Republic Brands in France. “We were fortunate to have our plants running at full capacity as we didn’t have to shut them down for a day. Of course, the health of our employees was a priority, but thanks to the strict sanitary measures taken from day one, we were able to maintain or even increase our volumes.”
Michael O’Malley, founder and CEO of Curved Papers in the U.S., says his rolling paper sales were up 40 percent last year. “People are just blazing weed like never before,” he says. “And it’s a good alternative among the choices people have made to cope.”
Lisa Esser, head of corporate affairs and business development at Gizeh Raucherbedarf in Germany, has observed an enormous shift of sales within Europe due to closed borders during the pandemic. While in 2019, almost 20 percent of cigarettes consumed had been nonduty paid, it was “only” 14 percent in 2021, she points out. The development was similar for rolling tobacco. However, while the absolute share of duty-paid tobacco sales in Germany grew during the pandemic, this does not reflect more tobacco consumption in absolute terms. Rather, says Esser, a large share of the previous cross-border sales has returned to national retail.

Curved Papers’ sales jumped 40 percent in 2021.
(Photo: Curved Papers)
Rising Production Costs
Santiago Sanchez
The numerous pandemic-related disruptions, including container shortages and raw material price increases, have also impacted suppliers of rolling paper. The availability of cartons and cellulose have been especially affected. “The vast increases in energy costs are not only hitting us but also our suppliers, who often pass on these costs to us,” says Esser. “There are also considerable challenges in logistics, with much longer lead times and shipping costs partly exploding. We expect price hikes of 10 [percent] to 20 percent across the entire value chain. Nevertheless, our supply of materials has been secured and continues to be of highest priority for us.”
During the first days of the lockdown, particularly in 2020, Republic Brands was concerned about logistical problems, both in the supply of raw materials and in the shipment of their finished products, according to Sanchez. “Thanks to the strong mobilization of logistics companies, our activities have not suffered in terms of logistics,” he says. “On the other hand, in the second half of 2021, we faced, like all other industries, difficulties in the Chinese supply chain, particularly the shortage of containers. These were just the beginnings of the tensions we are currently experiencing.”
Curved Papers, which caters mainly to the U.S. and Canadian markets, says it has been able to keep its stocks at the required levels. “Shipping has made us take a hit, but we’re not yet changing our price to the customer,” says O’Malley. While the conflict in Ukraine has not directly impacted his company, the global double whammy of a pandemic followed by the threat of World War III has made it hard to start new initiatives around the world. “It seems a matter of keeping what you have together and trying to respond to demand,” says O’Malley.
Esser expects a dramatic rise in costs and purchasing prices. “Risk assessment has shown that the pricing situation represents the biggest risk,” she says. “The situation has been exacerbated by the Ukraine crisis. We must contend with difficult conditions and are in close contact with our suppliers to be able to mitigate potential hurdles early on.”
Republic Brands is present in more than 100 markets and, as a result, feels the impact of the conflict, according to Sanchez. “I will not say anything original if I say that the Ukrainian war, in addition to being a humanitarian disaster in Europe, is significantly affecting all our activities in every sense of the word,” he says. “I have never seen anything like this before. Rising prices [for raw materials] are not the only problem. There is also a lot of pressure on the availability of raw materials. Just as there is a lot of pressure on the availability and consumption of energy. Some companies in our sector or in related industries—cigarette paper, acetate tow, etc.—consume lots of energy and are therefore highly exposed to the risk of increased energy costs. For our part, and even if it is symbolic, we have decided to stop our sales in Russia and Belarus. This is the minimum we could do.”

Eager to reduce the environmental footprint of their operations, rolling paper manufacturers are increasingly using fast-growing or recycled materials instead of fresh fibers in their products.
(Photo: Gizeh Raucherbedarf)
Greening Processes
Michael O’Malley
In addition to coping with current challenges, companies are working to become more sustainable. O’Malley, whose rolling papers are manufactured in the Dominican Republic, says his company’s paper comes from Forest Stewardship Council-certified forests and is produced under processes following strict European standards. “We would like to use more recycled material in our packaging,” he says. “We are always innovating.”
Gizeh, meanwhile, is striving to install sustainable processes in all of its operations. “Improvement is an ongoing project,” says Esser. “The maximum reduction of energy consumption is given high priority. In Austria, for example—our largest production site—we have invested in a photovoltaic system. Besides, we are constantly trying to reduce the use of fresh fibers and instead utilize fast-growing alternatives or recycled materials.”
Republic Brands, too, is continuously working to minimize its carbon footprint. “An important step has been obtaining the ISO 14001 certification, which confirms the implementation and the effectiveness of an environmental management system. The group and all its employees adhere to a set of common values that are grouped together in an environmental charter, which can be accessed from our website.” The company’s factory in Perpignan, France, and its booklet distribution warehouse are powered by hydroelectric power stations in the Pyrenees and in the Alps.

Republic has launched a cigarette paper booklet with a CBD-infused gum line under Roor brand in select European countries. (Photo: Republic Brands)
The Power of Pot
While the current business environment for rolling papers is far from ideal, new opportunities keep arising as more jurisdictions around the world legalize cannabis. “In countries where legalization has occurred in recent years, such as Canada and the United States, we are seeing a growth in sales,” confirms Sanchez. “The debate is open in many European countries, and now the only question is how soon the legislation on cannabis use will be relaxed,” he says. “We were the first to develop a new product for this category—namely a cigarette paper booklet with a CBD-infused gum line. Under the iconic Roor brand, these products have been launched in select European countries. In addition, one of the products is made from rice paper. Currently, this is the only product containing real rice fiber—from Camargue, France—although many others print ‘rice’ in their packaging.”
Founded in 2014, Curved Paper started out offering cigarette papers for cannabis consumption. “Eventually, hemp and flax came in as a couple of concerns or interests drove innovation of hemp and other nonwood material-based papers,” says O’Malley. “There is something to the don’t-cut-down-trees thing, of course, though we do it sustainably—but they do make the best rolling paper. The inexorable drive toward lighter papers, which zoomed right past the desirable range for a while there, was accompanied by this diversion away from wood pulp papers.
“Hemp-based papers are popular as [hemp] is from the same plant as marijuana. The papers commonly called ‘rice papers’ are mostly made from hemp and flax. The term ‘rice’ is from the early days of fine paper centuries ago. Fine paper first came from China and was indeed made from rice. So as Europeans developed printing and the fine European paper we have had for centuries now, they called all fine paper rice paper, and that term of art remains in use till this day not only in rolling papers but in all kinds of paper industries.”
Curved Paper offers seven styles based on four kinds of paper at two popular sizes, 1 1/4 and KSS. “Our marketing is still only U.S.[-based] and Canada-based, so our focus remains on cannabis,” says O’Malley. “Tobacco is 25 times as big. We have customers in the U.K. and the EU and all over the world, and we look forward to the global market, which is much larger for some of our exact same products. We are not looking to flood the market with a lot of silly products. In the long run, easy, simple and natural are going to be strong qualities to market. While cut corners are making a big move in 2022, our easy-to-roll curved edge is the next-generation solution to the same problem—and our key differentiator.”
Having recently decided to legalize recreational marijuana (see “State of Euphoria,” Tobacco Reporter, February 2022), Germany is poised to become the EU’s most important cannabis market—although it will likely take years before cannabis will be legally available in the country. Esser welcomes sensible regulation, saying that consumers should have access to less risky, quality-controlled legal products.
Unlike O’Malley, Sanchez does not necessarily believe that the best rolling papers are made from trees. Many cigarette and RYO paper companies, he says, use other fiber sources, such as hemp, flax, rice and bamboo, etc. These materials, notes Sanchez, are generally not inferior to base tree paper and in many cases cause less pollution.
He cites the example of Roor, which is already distributed in Germany without referencing cannabis. “We only develop our business in strict compliance with national regulations. However, as soon as legislation is made more flexible, we will develop our strategy accordingly.”
For O’Malley, European cannabis is a promising horizon. “The way it came from the West Coast here to New York and then to Europe is a prediction we made long ago that is playing out,” he says. “After a rolling papers brand matures, unless there is a major innovation, like introducing a curved version, it often becomes a pseudo-lifestyle brand to engage already loyal customers. This opportunity is huge as the political engagement behind legalization activates communities, as it will in Europe in the coming years and as it will continue [to do] in the U.S. So, even though tobacco is the big opportunity in actual use of the products, the cannabis culture stuff will be rich with opportunities for content creation for rolling paper brands.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

May 1, 2022
Rolling Paper Market to Exceed $1 Billion

Photo: Curved Papers
The value of the global rolling papers market will be $679 million in 2022, according to a new report by Future Market Insights. Sales are projected to increase at a 5.1 percent compound annual growth rate, with the market size reaching $1.1 billion by 2032.
Traditionally, tobacco was smoked using paper scraps and leaves of different trees. However, paper scraps and leaves have gradually evolved into sophisticated and commercial rolling papers. Increasingly, cigarette paper and rolling papers are made from non-wood plant fibers such flax, hemp, sisal, rice straw and esparto.
Rolling papers are available in several forms, which include transparent, colored and flavored varieties. These papers offer desired tearing strength, thickness, air permeability and burning speed control. Rising number of commercial cigarette brands and surging popularity of roll-your-own smoking are expected to bolster sales in the market in the forthcoming years.
By material type, hemp segment is estimated to account for around 60 percent of the total market share in 2022. In terms of basis weight, demand in the 10 gsm to 25 gsm segment will increase at a 4.6 percent CAGR through 2032, according to the report.
Sales in the U.S. rolling papers market will grow at a 3.7 percent CAGR, reaching a valuation of $164.8 million by 2032. China will account for a lion’s share in the east Asian rolling papers market, with total sales reaching $136 million by 2032.
April 22, 2022
Report: Paper Market to Hit $1.58 billion

Photo: BMJ
The global tobacco paper market will grow from $1.23 billion in 2020 to $1.58 billion by 2028 at a compound annual growth rate of 3.04 percent, according to a report by The Brainy Insights.
The authors of the study attribute the growth to an increase in demand for treeless cigarette rolling papers and the popularity of roll-your-own (RYO) cigarettes, among other factors.
“Tobacco paper vendors are now focusing on eco-friendly cigarette papers,” The Brainy Insights wrote in a press note. “They now offer eco-friendly products, for instance, tree-less cigarette paper and filter tips. Different fruit pulp and vegetable pulp are now getting used for the rolling papers in place of trees by the tobacco paper manufacturers.”
Other developments discussed in the report include slow burning low-odor papers and products that are easier to roll. The authors also suggest that strict regulation of vapor products is driving some vapers toward RYO cigarettes.
April 13, 2022
Fired Up

Nina Ritter-Reischl, in front of Glatz LIP paper machine
(Photo: Julius Glatz)
Having prevailed in an intellectual property dispute, Julius Glatz prepares to reenter the market for lower ignition propensity cigarette papers.
By George Gay
Julius Glatz is to reenter the market for lower ignition propensity (LIP) cigarette papers.
This follows a four-year hiatus during which it was forced out of that market as a result of a patents dispute it eventually won in September last year, after a legal battle that, in total, lasted six years.
Nina Ritter-Reischl, a managing partner at Glatz, told Tobacco Reporter during an exchange in January that, having overcome the difficulties of those four years, the company, which produces a large range of papers, mainly for the tobacco industry but also for other industries, was keen to return to the LIP market and, indeed, had already started work on doing so.
And this won’t be a case of starting from scratch, of course. “As we were able to retain at least some of our core personnel, we can build upon their know-how and knowledge to produce LIP papers with the high standard our customers know us for,” said Ritter-Reischl. “Our customers will still find their former contacts in our technical, R&D and sales teams.”
Meanwhile, the machine that Glatz used in the past to produce its LIP papers has been geared up at the production site where those papers were manufactured previously, in Neustadt, Germany, about 10 km from the company’s base in Neidenfels. “Our LIP machine has been maintained during the down period, some parts have been renewed, and our control technology has been upgraded within the last months,” said Ritter-Reischl. “Those investments were made to ensure production of all kinds of LIP papers.
“As our application system is very flexible,” she added, “our production range and products are as well. We can therefore produce LIP papers to the specifications our customers were used to, or we can develop papers with new specifications according to our customers’ needs.”
Of course, during the period when it wasn’t possible for Glatz to manufacture LIP papers, the company didn’t just sit on its hands; it used the time to concentrate on another type of demanding tobacco industry paper. “We were able during those four years to focus on another part of our core competences—our tipping base paper production,” Ritter-Reischl said. “Those papers also are very complex and demanding papers in the industry, and our quality and service for those is a benchmark.”
That’s not to say, however, that the renewed opportunities that LIP paper production now offer isn’t massively important. In corresponding with Ritter-Reischl, I got the impression that Glatz was not only taking a huge amount of pleasure in being able to restart its LIP papers operation but also relishing the fact that this meant it could once again offer a complete range of tobacco industry papers. “Entering back into the LIP market, we at Glatz can offer our customers not only additional papers, [but] we can again provide them with the full-service range of all papers for the industry, from plug-wrap papers and tipping base papers to cigarette papers, including LIP papers,” she said. “We are able to offer all these papers manufactured to the highest qualities and within the most demanding specifications. And we can offer a flexible service delivered through short lines of communication by a dedicated team of traditional paper makers.”
Currently, Glatz’s LIP papers production unit is making trial runs to produce papers of various specifications for a number of interested customers, but it expects to have to ramp up its production level to full manufacturing mode during the next few months.

Ritter-Reischl, who is a lawyer, seemed frustrated that discussions and legal disputes over one LIP patent had taken so long but pleased that that period was now behind the company. “As the patent was held to be invalid, this pulled the rug from under all the accusations made against Glatz,” she said. “But, needless to say, this dispute and the interim consequences were a burden for us over the past four years, and only a company like ours with a very resilient financial, social and competitive structure would have been able to endure such a phase.”
Julius Glatz is a family-owned medium-sized company with more than 135 years of experience in producing paper in Neidenfels, Germany. “We are a traditional and sustainable asset in the region, being ourselves aware of the responsibility we have toward our employees, our environment, our suppliers and, most important[ly], our customers,” said Ritter-Reischl.
The company was started in 1885 by Wilhelm Adolph Glatz, Franz Julius Glatz and Hans Haehnle when, between them, they founded the Glatz papermill at Neidenfels in the Palatinate Forest. Almost 100 years later, in 1990, Glatz became the first fine paper manufacturer to offer thin printing papers and cigarette papers of TCF (totally chlorine-free) quality. And, in 1994, Glatz became part of the first Sino-German joint venture in the field of tobacco industry papers with the founding in Yunnan province of Yunnan Hongta Blue Eagle, which quickly went on to produce premium cigarette paper of international quality standards.
Now, as it navigates 2022, Glatz can look forward to the boost that being able once again to participate in the LIP papers market will bring. But the question arises as to what the future holds for Glatz beyond LIP papers, and Ritter-Reischl started answering this question by admitting that, overall, the outlook for the traditional tobacco industry was not exactly rosy. Everyone knew, she said, that the tobacco market in general was difficult, as regulations and tobacco product taxes were increasing while the number of smokers was decreasing. Nevertheless, she indicated, Glatz was optimistic about the future, and part of that optimism seems to be coming from what is perhaps an unexpected source. “Due to the coronavirus pandemic, customers have come to realize how important local sourcing, flexible service and short communication tracks are,” said Ritter-Reischl. “And those are all services and assets that we can offer firsthand.”
Another reason for optimism at Glatz was that the idea of sustainability was becoming more and more important and into focus, said Ritter-Reischl. “As a family-owned business with a history of 135 years in paper making, [we] are sustainable by our very nature,” she said. “We value our employees and suppliers, we take care of our environment, and our customers are always in focus as we conduct every aspect of our business.”
Of course, individual businesses can expand even when the markets they serve are not expanding by, in one way or another, increasing their market shares or by diversifying. And in this regard, Glatz sees opportunities arising in the future as paper products come to replace other materials, such as plastic. “Our thin papers with their special haptic properties can be used in other industries to substitute for foil or other wrappers,” she said. “Therefore, alongside our tobacco papers specialization, we have the opportunity of diversifying into other aspects of fine papers. And this will be one of the options we will focus on in the future and that will help keep us optimistic in the face of the challenges to come.”
George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.

March 1, 2022
SWM Reports Full-Year and Quarterly Results

Photo: SWM
Schweitzer-Mauduit International reported sales of $1.44 billion in 2021, up 4 percent on an organic basis. GAAP operating profit was $83.3 million, down $45.5 million, and included $38.9 million of transaction and integration costs and incremental purchase accounting expenses from the Scapa acquisition that closed on April 15, 2021. Adjusted operating profit was $158.8 million, down $12.8 million.
The company’s engineered papers business recorded sales of $509.3 million for the year, down 4 percent, driven by a 2 percent volume decline and unfavorable price/mix of 4 percent, which were partially offset by a 3 percent currency benefit related to the euro.
The volume decline was primarily attributable to lower tobacco paper volumes, particularly low-ignition propensity (LIP) papers, as customers adjusted inventories lower after building significant safety stocks in mid-2020. The lower LIP volume was also a significant contributor to the negative mix effect. Rapid growth throughout the year in heat-not-burn sales was a positive offset within the tobacco business, while nontobacco paper volumes also increased.
In the fourth quarter of 2021, the engineered papers segment business reported sales of $134.8 million, up 3 percent, driven by a 5 percent volume increase, unfavorable price/mix of 1 percent and 1 percent of negative currency related to the euro. Volumes benefited from gains in tobacco papers, continued rapid growth in heat-not-burn products, and an increase in nontobacco papers.
“We enter 2022 confident that we will deliver strong growth in sales and profitability, said SWM CEO Jeff Kramer in a statement. “2021 top line performance met our growth expectations, but profits were impacted by sharp input cost increases and supply chain challenges, which we expect to moderate as this year progresses.
“Early signs show more positive fundamentals on several fronts. We have successfully increased prices across the business and see moderation on some key input costs while we continue to progress against other supply chain hurdles.”
February 24, 2022
Tipping the Scales
Tipping papers serve both functional and aesthetic purposes. Not only do they help ensure the integrity of the rod-filter construction and play a role in cigarette ventilation, but they also provide useful real estate for decorations. Using sophisticated printing and embossing technologies, manufacturers can appeal to senses of sight and touch. For this article, Tobacco Reporter interviewed two prominent industry suppliers about their innovations relating to tipping papers.

What you see is what you feel—the growing interest in embossed tipping papers
It is always interesting when opportunities are identified and exploited within business sectors, such as the traditional tobacco products market, that are, overall, less than vibrant. It seems to indicate that somebody, a team perhaps, or even a whole company, has been thinking outside the box—or, in one case at least, thinking big inside the box.
Toward the end of last year, the Tann Group told Tobacco Reporter that for the past five years it had been enjoying a “tremendous” increase in interest for embossed tipping papers—an increase that had required it to make major investments in machinery and personnel to keep up with demand. And it seems that, for at least three reasons, this increase in interest is likely to be maintained. One is the vital feedback loop that is powered by consumer demand and that is clearly working hard in this case. Another is that while the increase in demand has been widely spread, it has not gone global—yet. And yet another is that, working within the letter and spirit of even strict regulations, cigarette manufacturers can use some embossed tipping papers to help maintain the attractiveness of their products even when and where those regulations are being imposed so as to reduce product appeal.
But more of that later. Firstly, it is necessary to explain for those not already familiar with embossing as it applies to tipping paper, something about the types of embossing that are available for such applications, which comprise macro-technology, micro-technology and nanotechnology. Macro-embossing delivers a haptic effect, one that doesn’t require any special surface treatments of the tipping paper, such as printing or coatings, and that is experienced by a smoker through her fingers and lips because the bosses produced by this process, which are in the submillimeter range, are large enough for them to be detected by touch. By contrast, in the case of both micro-embossing and nano-embossing, the surface deformations produced are respectively within the micrometer and nanometer ranges, which are too small to be detected by touch but which interact with visible light and in this way provide some spectacular visual effects.
In the case of micro-embossing, the structures produced influence the reflection of visible light, so this technology is used only on tipping papers that have metallized surfaces, such as those produced by metallic hot foil stamping, and not on plain paper. Without micro-embossing, the light reflected by stamped hot foil items, such as lines and logos, would be clear and shiny as it would be when reflected by polished metallic surfaces. But with micro-embossing, the light reflection becomes diffuse and scattered as it is on matte metallic surfaces, and this gives the hot foil designs a satiny appearance.
The nano-embossed structures, meanwhile, cause the light that strikes them to be diffracted in such a way as to produce an interference effect—to be split into the spectrum of colors and thereby to deliver rainbow visuals, holographic impressions and the “tilted image” effects that are strongly dependent on the angle at which they are viewed. Nano-embossing, which requires the tipping paper to have a full-surface color, produces its strongest effects the darker that the background color is.
Of the three types of embossed tipping paper on offer, the Tann Group says it is the macro-embossed one that is currently most in demand because it communicates with consumers on both a haptic and a visual level, something the company describes as a “what you see is what you feel” concept. But it is the case that embossed tipping papers, whether they employ macro-embossing, micro-embossing or nano-embossing, are used mainly on premium brands, partly because of the haptic and visual upgrades they provide but also simply because of the higher prices that such tipping papers command.
It follows, then, that embossed tipping papers, whether macro-embossed, micro-embossed or nano-embossed, are particularly popular in those places where premium brands are most in demand, including duty-free outlets. Currently, demand for embossed tipping paper is mainly coming from the countries of the CIS and Asia, including China and South-East Asia, but it is expected that the trend will move to parts of Europe and Central and Latin America.
Of course, due to stricter regulations that will govern tobacco products in the future, including those imposed through the EU’s second Tobacco Products Directive, it will become more and more difficult in certain regions to apply to tipping papers special features, such as special inks, aromas/flavors and metallic elements. However, embossing technologies—and especially macro-embossing—provide potential options to maintain the appeal of tipping papers while complying with such regulations, because no extra chemical treatment of the tipping paper or application of special inks is required. With the help of purely mechanical converting of tipping papers, there will still be opportunities for effective design upgrades that do not come into conflict with regulatory or sensory/toxicological restrictions.
Given the importance of maintaining product appeal while complying with regulatory requirements, it is worth mentioning, too, that the embossing techniques described here can be applied also to printed paper inner liners, which is the first point of interaction, contact and, therefore, communication that the consumer has with a brand after opening a pack of cigarettes.
Examples of off-the-shelf macro-embossed, micro-embossed and nano-embossed tipping papers are available from the Tann Group, which also offers a design service as part of development projects in which customers get to see and feel the finished product prior to a market launch. —George Gay

Into the Void: The Fine Art of Cigarette Ventilation
Thinking recently about the perforation of cigarette tipping paper, I was reminded that Leonardo da Vinci is credited with once having said that among the great things that are found among us, the existence of nothing is the greatest. I’m sure you can see where this is leading. The perforation of tipping paper allows for the controlled dilution of tobacco smoke, so, given that in many parts of the world, controlling the deliveries of tobacco smoke constituents is the subject of government regulation, it is no overstatement to say that perforating technology plays a vital role in cigarette manufacture. And so here is a case where a vital role is played by perforations—holes if you like, and what are holes if not nothing?
Of course, this introduction is somewhat misleading because, in the case of perforations, the nothingness “created” is defined by the material in which they are made—the tipping paper, though it is still the case that some such papers are not perforated.
But in the main they are. Axel Nather, head of sales and marketing at Micro Laser Technology (MLT), told Tobacco Reporter in an email exchange early this year that a few manufacturing processes still used electrostatic perforation, which worked well where only very low levels of ventilation were required. However, he said, as government regulations and end users demanded cigarettes with increasingly lower deliveries, laser perforation was ultimately the solution. Laser perforation could be used to produce very stable low-ventilation, medium-ventilation and high-ventilation levels, and ventilation level adjustment was very simple, requiring only changing the hole sizes, track numbers and hole quantities.
With MLT systems, the operator can instigate these adjustments, and, in the case of online equipment, additional parameters can also be set, so, for example, thicker cardboards can be perforated or cut.
The use here of the word “cut” needs some explanation as does the reference to “online” equipment. When it started in business 20 years ago, MLT developed and supplied offline laser perforation machinery, but during the past 10 years, it has also been offering and supplying online equipment. This means the company has three main groups of tobacco industry customers comprising cigarette manufacturers of all sizes, paper converters and machine builders that integrate MLT’s laser equipment into their production lines.
Offline machinery, which comprises stand-alone machinery, is almost always supplied directly to customers. On the other hand, online equipment can, as stated above, be taken up by manufacturers when MLT’s equipment is fitted to OEM cigarette making machinery, and it can be retrofitted to existing manufacturing lines either by MLT or by specialist rebuilders. And finally, there are laboratory systems, which, Nather said, could be delivered with many technically exciting elements.
Finally, that is, in relation to perforation machinery and equipment. The tobacco industry also uses MLT’s systems for laser cutting and laser scribing, mainly in the production of cigarette packaging, where cardboard and foils are cut and scribed. But MLT’s laser perforating and cutting systems have come into their own with the rise of heat-not-burn (HnB) products. Mostly, HnB products are made with relatively thick materials, such as cardboard, said Nather, so for this reason, MLT had developed laser systems that could generate extremely short pulses of very high powered lasers. This allowed the creation of very small, clean holes, and it also meant that many thousands of “cardboard sticks” could be perforated per minute. And if the speed was still not sufficient, two lasers could be used simultaneously to double the speed.
All this adds up to what Nather described as a pleasing and increasing level of project inquiries and sales, despite the fact that in 2020 the coronavirus pandemic had had a significant impact on the entire tobacco industry, with projects often being delayed. Nather mentioned in particular steadily increasing inquiries in the area of online perforation and HnB products. And he said MLT’s service department was currently very busy because, in part, it now maintained older laser systems produced by other suppliers and refurbished their laser sources.
One of the reasons that Nather gave for the increasing level of interest was the innovative nature of the tobacco industry, especially in the area of new product developments, for which MLT’s laser systems were often needed. “This is, of course, very gratifying; development projects are always a great pleasure when exciting products are created,” he said. “As a medium-sized company, we are very flexible and can react relatively quickly.”
The one challenge Nather mentioned concerned the effects of the coronavirus pandemic, and I asked him what difficulties MLT had faced and what steps it had been able to take to ameliorate those difficulties. Some tobacco industry projects had been postponed and others had taken longer than normally would have been the case, he said, especially during 2020 and early 2021. In addition, travel had been difficult, and, in some cases, it had not been possible to enter some countries, such as the U.S., for a relatively long time.
In response, MLT had created the circumstances whereby systems could be put into operation virtually, often by helping customers through webcam-based remote maintenance. Interestingly, Nather added that while MLT was glad traveling had become easier again, it would continue to use or even expand the possibilities offered by online maintenance and commissioning. —George Gay

February 1, 2022
Paper Market to Hit $1.3 Billion by 2026

Photo: Delfort
The global market for tobacco papers will reach a value of $1.3 billion by 2026, representing a compound annual growth rate of 3.5 percent, according to a new study published by Facts and Factors.
The authors expect growth to be driven in part by demand for environmentally tobacco papers, with new products made from fruits and vegetable pulps as well as cultivated cotton. Regionally, growth will be strongest in the Asia Pacific region, according to the report.
The study covers major suppliers such as Bukit Muria Jaya, Glatz Feinpapiere, Schweitzer-Mauduit International and Delfort Group.
It also provides information on subsegments such as plug wrap, rolling paper, tipping base paper and cigarette tissue, along with data on materials such as rice straw, flax, wood pulp, sisal, hemp and esparto.
Facts & Factors is a market research organization offering industry expertise and consulting services.
December 21, 2021
No Paper Tiger

SWM’s new technology allows for the creation of patterns, designs and logos inside the gum strip without compromising sticking quality. (Photo: SWM)
Schweitzer-Mauduit International has introduced a new gumming technology to help rolling paper manufacturers protect their brands against counterfeiting.
By Stefanie Rossel
In recent years, cigarette rolling papers have been in high demand; the global roll-your-own tobacco product market, valued at $7.49 billion in 2020, is expected to expand at a compound annual growth rate of 4.2 percent from 2021 to 2028, according to Grand View Research. The increasing preference for handrolled or handmade cigarettes, a cheaper alternative to factory-made cigarettes, has been driving the demand for roll-your-own products. It has been aided by the legalization of cannabis for medical and recreational purposes in a growing number of countries around the world.
As demand for rolling papers has increased, so has counterfeiting of these products. Reports on seizures of significant quantities of fake products, predominantly in the U.S., have repeatedly made the headlines. Rolling paper manufacturers have filed civil actions seeking monetary and punitive damages and injunctive relief from those who traffic in counterfeit goods and who have profited from their sale and distribution. Several leading suppliers of rolling papers have installed dedicated sections on their websites that encourage the reporting of fake products.
While manufacturers fear the financial damage and the harm counterfeit papers cause to their brands’ image, fake products also pose a grave risk to consumers as they are often manufactured using unsafe production practices and unknown and hazardous or toxic ingredients, such as chlorine bleach or petroleum-based adhesives.
Pierre Yves Kervennal
To support its customers in protecting their brands against counterfeiting, Schweitzer-Mauduit International (SWM) has introduced a new generation of gumming technology. “Our new gumming technology is a completely different approach of the existing gumming technology,” explains Pierre Yves Kervennal, product manager for rolling papers at SWM’s engineered papers business unit. “It’s a new space of communication and enhancement of the brand for our customers. The use of natural and colored gum, perfectly in accordance with the legislation, allows us to create patterns, designs and logos inside the gum strip without diminishing the ‘sticking’ quality of the Arabic gum. This opens new opportunities for our clients to differentiate on the market but also communicate with their customers. We called this new service of customization of the gummed band ‘Be Unique.’”
According to Kervennal, tobacco companies are battling counterfeits every day. “It’s not only a financial loss for them but also a reputation hazard,” he says. “And to be fair, the paper industry didn’t bring a lot of solutions to the market over the recent years. Of course, the filigreed papers and the good market practices such as ‘Know Your Customer’ already protect our customers and make it really hard for forgers, but, unfortunately, this is not 100 percent bulletproof. Our clients now have a new weapon at their disposal. Our innovative and patented technology allows to add an additional layer of complexity whilst giving them additional marketing opportunities. In fact, ‘Be unique’ is just an example of the bank note strategy; each time a new bank note is introduced on the market, new technologies are added to the paper to make it safer.”
Driven by Cannabis
In Europe and the Middle East, rolling papers are a historical product of the tobacco industry, Kervennal points out. As such, they face the same kind of issues as any other products from this industry. “It means that major brands can be copied, and with the multiplication of the new distribution channels, the risk of buying counterfeit products is growing for customers. During the Covid crisis and the border closures, we have seen legal markets grow about 10 percent just because the counterfeit products could not come through anymore. In the U.S., this is a very dynamic and trendy market, with some brands already well installed and providing high-quality products. These brands are going to be the ones who will have to fight against counterfeiting—the more dynamic the market is, the more attractive it is for unfair players.”
Responsive to consumer demand, SWM is increasingly focusing on solutions that cater to the growing market for recreational cannabis. “In terms of product design, we develop more and more specific grades and product for cannabis use, such as hemp and unbleached paper,” says Kervennal. Another trend in the roll-your-own market is a desire for differentiation. “We observe an increasing demand from companies creating their own brands and looking for new visual design.”
In the U.S., the RYO papers segment is driven largely by the cannabis market. “Consumers in that market are looking for all-natural products, typically hemp-based products, and brand owners are looking to differentiate their offering through customization,” says Kervennal. “Some additional trend we see in the United States is continuing legalization. Right now, there are 18 states plus the District of Columbia where adult use of cannabis is legal, and that will continue to grow over time. A last trend that we do see is celebrity brand endorsers where brand owners are using celebrities to endorse their brands on social media, which increases demand for roll-your-own papers.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

December 1, 2021
SWM Adjusts Outlook Following Tough Quarter

Photo: SWM
Schweitzer-Mauduit International reported GAAP income of $12.2 million in the third quarter of 2021, down from $24.5 million in the third quarter of 2020. Adjusted income was $25.8 million, down 29 percent; Adjusted EBITDA declined 18 percent to $52.8 million. Net currency movements had a $1.8 million negative impact on operating profits.
“We are clearly operating in an unprecedented economic environment for the second year in a row,” said SWM CEO Jeff Kramer in a statement. “After delivering strong 2020 performance despite a global epidemic, we are now seeing robust demand across many of our end-markets. However, manufacturers around the world are now navigating widespread inflationary pressures and supply chain disruptions.
“Given the performance to-date and expected lingering fourth quarter pressures, we believe our 2021 Adjusted EPS will finish below our originally guided range. However, we are seeing early signs of relief from several challenges and fully expect our 2022 guidance, when issued in February, to reflect a strong operating profit rebound as we are well positioned for growth as conditions normalize throughout next year.”
November 4, 2021
Court Partially Nullifies ‘Fire-Safe’ Paper Patent

Photo: Vitalii Vodolazskyi
The German Federal Court of Justice has partially nullified a European patent assigned to U.S. paper manufacturer Schweitzer-Mauduit International (SWM), reports Juve Patent.
European patent 1 482 815 protects a paper with reduced ignition proclivity characteristics used for manufacturing cigarettes. The papers are treated with film-forming solutions, which makes them less permeable to oxygen. As such, the embers inside the cigarette cannot easily spread to any material it may be lying on. This is to prevent fires caused by dropped or discarded cigarettes.
In 2015, SWM sued Julius Glatz, insisting the German company’s Cigla brand of cigarette papers infringed on its patents. After much legal back and forth, Julius Glatz stopped its production of the disputed papers, closing production facilities and laying off employees.
Following the recent ruling, Julius Glatz announced it would restart production with immediate effect. “As the patent in suit was held invalid, Julius Glatz GmbH and its daughter company LIPtec GmbH never infringed a valid patent,” the company wrote in a statement.
“Glatz is assuring the high quality, service level and competitiveness the industry is used [to] from them in all paper segments and is therefore proud to say that they are back as a full-service supplier, meaning with LIP-papers too.”
Julius Glatz is demanding almost €40 million ($46.3 million) from SWM in compensation for the damages it suffered in the dispute.
October 11, 2021