Imperial Brands yesterday published a report giving – for the first time – an overview of the progress it is making in respect of next generation products (NGPs) and outlining its views on a number of key related issues.
The report, From Tobacco to Something Better, is expected to be updated in the future to keep it relevant to what is a quickly-evolving sector.
The 17-page report looks at Imperial’s NGPs timeline, the public health opportunity presented by NGPs, the risk spectrum, products, including snus and heated-tobacco devices, vapor research and development, and regulation.
In an introduction, Imperial’s chief executive, Alison Cooper (pictured), said Nerudia, Imperial’s innovation arm, was “focused on creating a compelling pipeline of innovative products and its entrepreneurial spirit is proving to be a winning addition to our own vibrant culture”.
“In assembling the right components for success, we have deliberately favoured the vapor (EVP) opportunity as it’s by far the largest NGP category,” she said.
“With the technology and scientific insights available to us today, we have never been better placed to be able to transition smokers from cigarettes to something better.
Meanwhile, Matthew Phillips, Imperial’s chief development officer, is quoted in the report as saying that tobacco will be Imperial’s core business for many years to come, generating the funds to invest in NGP.
“But over time that balance will shift and you will see NGP making a material and sustainable contribution to our financial delivery, as we accelerate the transition of smokers to something better,” he said.
Category: Technology
Imperial – a better offer
Altria Group restructures
The Altria Group yesterday announced a new structure ‘to maximize its core tobacco businesses while realizing its aspiration to be the US leader in authorized, non-combustible, reduced-risk products’.
In a note posted on its website, Altria said that the key components of the new structure included:- Establishing two divisions – core tobacco and innovative tobacco products;
- Creating a chief growth officer function to accelerate speed to market for innovative products and technologies; and
- Aligning product development efforts more directly to the core and innovative tobacco product businesses.
“This is a dynamic time in the tobacco industry, and just as we lead in traditional tobacco products, we intend to lead in offering adult smokers more choices in innovative, non-combustible, reduced-risk products,” said Howard Willard, Altria’s chairman and CEO.
“We expect this new structure to accelerate our innovation pipeline, maximize our core tobacco businesses and allow us to continue to reward shareholders.”
Altria said it would adapt its structure from one where a chief operating officer oversaw all operating companies to a structure aligned with the company’s dual strategies – maximizing income from core tobacco businesses and growing new income with innovative tobacco products.
PM USA, USSTC, Middleton, and Nat Sherman will form Altria’s core tobacco division.
‘Jody Begley, as senior vice president, tobacco products, Altria, will oversee the core tobacco businesses, as well as their product development and engineering support,’ the note. ‘He will report to Billy Gifford, vice chairman and CFO.’
Leading those businesses will be:- Heather Newman, president and CEO, PM USA;
- Shannon Leistra, president and CEO, USSTC;
- Ryan Bauersachs, MD and general manager, Middleton; and
- Dominik Meier, MD and general manager, Nat Sherman.
Meanwhile, Altria said that its innovation company, Nu Mark, would focus on developing a compelling portfolio of non-combustible products that adult smokers enjoyed and that had the potential to drive adult smoker conversion. ‘This portfolio includes oral nicotine-containing products, e-vapor and innovative inhalable products,’ the note said.
‘Brian Quigley, as president and CEO, Nu Mark, will oversee the innovative products business, reporting to Howard Willard.’
At the same time, Altria said it had established a chief growth officer function that would ‘identify and pursue Altria’s strategic and innovative growth priorities across the tobacco landscape’. ‘This function will identify marketplace and adult tobacco consumer insights and translate them into strategies for product development, consumer engagement, future of commerce and business development,’ it said.
‘K.C. Crosthwaite is appointed senior vice president and chief growth officer, Altria Client Services LLC (ALCS), reporting to Howard Willard.’
The changes are due to go into effect on June 1.Expanding cannabis
Alliance One International said yesterday that its indirect subsidiary, Canada’s Island Garden (CIG), would undergo a ‘significant expansion’ to support the growth of its Canadian cannabis line.
The expansion, involving the construction of state-of-the-art plant, would increase CIG’s production capacity of medicinal cannabis, Alliance said. And it would increase production capacity for recreational cannabis as and when sales for the recreational market were legalized.
‘Phase 1 of the expansion, which includes a 166,000-square-foot greenhouse and 54,000-square-foot warehouse, is a $27 million (C$35M) investment,’ it said. ‘The warehouse is being constructed to also accommodate Phase 2 of the expansion, which would add an additional 90,000 square feet of greenhouse space.
‘Phase 1 will increase the facility’s annual production capacity from 1,200 kg to 18,000 kg and is expected to be complete in spring 2019. ‘Assuming completion of Phase 2, Canada’s Island Garden would have a total annual production capacity in excess of 35,000 kg.
‘Both the Phase 1 and Phase 2 expansions are designed to feature the latest technological advancements in horticulture and cannabis production to allow for the production of a premium-quality and sustainable product for consumers in Canada, optimized to create comprehensive transparency and traceability, from plant to final product, while also including security protections to maintain proper control of the facility.’
Meanwhile, Alliance said that CIG had unveiled a new ‘FIGR’ brand, which reflected ‘the scientific rigor and decades of agronomic excellence for which it is known’.
‘Since the acquisition of 75 percent of Canada’s Island Garden by Canadian Cultivated Products, a wholly owned indirect subsidiary of Alliance One, the Canadian companies have been working on a new naming and branding concept. Canadian Cultivated Products will be rebranded to FIGR Cannabis, Canada’s Island Garden to FIGR East and Goldleaf Pharm, a sister company in Simcoe, Ontario, to FIGR Norfolk.
‘FIGR products are intended become available to the public in Canada as soon as sales in the recreational adult market are legalized. Sales to medical patients in Canada will remain under the current branding of Canada’s Island Garden.’BAT widens horizons
British American Tobacco has made its first outside investment as it steps up the search for cutting-edge technology that could help it to reduce its reliance on cigarettes and other traditional smoking products, according to story by Bradley Gerrard for the Electronic Telegraph.
The company has backed China Materialia Venture Capital, a Chinese investment fund that is said to seek out early-stage technology firms in a bid to help them develop products that could subsequently be sold to larger companies.
Dr. David O’Reilly, who heads BAT’s research and development division, was quoted as saying that the company had for the first time invested in what he described as a “corporate scouting venture fund” whose aim was to help its investors “secure the latest technology”.GFN registration open
With about three weeks to go until the start of the fifth Global Forum on Nicotine, the organisers say that there is still time to register for what is scheduled to be the biggest Forum yet.
The 2018 Forum will include the event’s biggest-ever conference program with more than 55 speakers, the second International Symposium on Nicotine Technology, and a film festival.
It is scheduled to be held at the Marriott Hotel, Warsaw, Poland, on June 14-16.Fast-changing climate at JT
Japan Tobacco Inc. said today that it had achieved, three years ahead of schedule the greenhouse gas (GHG) emissions reduction-target as set out in 2014 in the JT group Long-Term Environment Plan.
‘JT has continuously made progress towards the group’s target of reducing absolute GHG emissions … by 20 percent between 2009 and 2020 as part of its commitment to cut down its contribution to climate change,’ JT said in a note posted on its website.
‘In 2017, JT … exceeded this target by reducing its annual GHG emissions to 694 thousand tonnes compared to 880 thousand tonnes in 2009 – a 21.2 percent reduction.’
JT added that its efforts across the group had contributed to a decrease of GHG emissions on a global scale, while market contraction in the Japanese domestic tobacco business had contributed to the reduction. These outcomes had been achieved despite challenges linked to expanding operations in emerging markets and the restructuring of its manufacturing footprint in Europe.
JT said its efforts to achieve its 2020 emissions target included:
・ ‘Aligning our environmental management systems with relevant international standards ISO 14001 and ISO 50001 coupled with our JT Green System, a simplified environmental management system, developed for our smaller and less complex operations in Japan.
・ ‘Implementing the energy saving protocol with broad coverage from the manufacturing process to the office environment.
・ ‘Increasing the proportion of renewable energy use and reducing energy consumption across all operations.’
JT said it would ‘continue to develop its Long-Term Environment Plan including revised emission targets in line with science-based approaches, while taking into account the Paris Agreement on climate change’.Springtime for CORESTA
CORESTA, the Co-operation Centre for Scientific Research Relative to Tobacco, is returning to China for its 2018 Congress.
Twenty years after the first Congress to be held in China was hosted by the China National Tobacco Corporation (CNTC) in 1988 in Guangzhou, and 10 after the 2008 Congress was held in Shanghai, CORESTA is again turning to China; this time to the ‘world capital city of tobacco’, Kunming.
Kunming, which is the capital of Yunnan Province, is known also as the City of Eternal Spring – a reference to its year-long mild, sunny climate.
The Congress is due to be hosted by the CNTC and held on October 22-26 at the recently-built Intercontinental Hotel.
The theme of the 2018 Congress is Science and Innovation: addressing the needs.
According to a recent CORESTA press note; in line with this theme, CORESTA’s Scientific Commission wants the event to be an opportunity for delegates to share their experience with the broad scientific community, within and beyond the tobacco perspective.
‘Workshops will be arranged to foster open dialogue on crop protection, biotechnologies, product risk assessment and biomarkers,’ the note said.
‘This approach will provide valuable information to all stakeholders in the increasingly challenging regulatory environment.
‘Latest updates and scientific achievements and findings will be presented to the benefit of both experienced and new scientists.
‘A CORESTA Congress is always an invaluable opportunity for building links and networking between generations of scientists.’
The Congress program is due to be made available at www.coresta.org at end of June.
CORESTA is an association whose purpose is to promote international co-operation in scientific research relative to tobacco and its derived products.
The association organizes yearly conferences (congresses are held every two years) where hundreds of tobacco breeders, agronomists, biologists and plant experts on the one hand, and physicists, chemists, analysts, toxicologists, finished-product-related experts, regulators and authorities on the other hand, meet to present, share and discuss studies and findings.
CORESTA activities cover all aspects of tobacco, from the crop to the usage of the derived products.
During the sessions, CORESTA working groups also present reports on their work, achievements and projects.Vapers to have their say
Representatives of the UK’s vaping industry and consumers are due to give evidence later today to the House of Commons’ Select Committee on Science and Technology.
The Committee, made up of a cross-party group of MPs, is scheduled to start its meeting at 17.05.
It has been examining the impact of electronic cigarettes on human health, and, as part of that examination, their effectiveness as a stop-smoking tool.
It has examined also the regulatory landscape.
John Dunne (pictured), director of the UK Vaping Industry Association (UKVIA), will be giving evidence in front of the Committee alongside Fraser Cropper, chairperson of the Independent British Vape Trade Association and Sarah Jakes, chairperson of the New Nicotine Alliance.
“This is a great opportunity to present the industry’s perspective on how regulation impacts the sector on a day to day basis, both the good and the bad,” Dunne was quoted as saying as part of a press note issued by the UKVIA yesterday.
“E-cigarettes are valuable tools which will reduce the number of people smoking conventional cigarettes. Yet, despite the consensus from leading health bodies that vaping is likely to be at least 95 percent less harmful, there is still a huge amount of misinformation out there.
“We are hoping that our evidence … will inform MPs on how they can direct regulation to help us in our mission to inform the 7.6 million smokers in the UK – and the 40 percent of smokers who haven’t even tried it – of the potential health benefits of switching to vaping.”
The UKVIA said the UK had become an early adopter of vaping technologies, with the nation’s smokers keen to adopt an alternative to smoking.
‘By 2012 there were already 700,000 vapers in the UK and in 2017 this figure reached nearly three million people, over half of whom have given up smoking entirely.’Vaping forum scheduled
The growth of the UK’s vaping industry will be the subject of a business-to-business conference scheduled to be held in London later this month.
The event, Going for Growth, which is being organized by the UK Vaping Industry Association (UKVIA), is due to be held on April 23, at the King’s Fund, a health charity that, among other activities, hosts health care events.
A UKVIA press note issued yesterday said the event was being organized at an exciting time for the industry, with Public Health England having reiterated its conviction that vaping represents one of the best ways to quit smoking and a positive public health opportunity.
The note said the main topics of the discussion were set to include:- The regulatory landscape, chaired by Mark Pawsey MP (pictured), chair of the All Party Parliamentary Group for E-Cigarettes;
- The role of the tobacco and pharmaceutical industries in the sector, chaired by Gareth Johnson MP;
- The future of the category in the grocery trade, chaired by Tim Phillips from ECIgIntelligence
- The public health case for e-cigarettes, chaired by the Rt Hon Norman Lamb MP, chair of the Science and Technology Select Committee and a former minister for health.
The event will include the unveiling of the world’s first smart-vaping product, developed by the event’s headline sponsor, AYR. The device is said to be unique because it is the first of its kind that can monitor its own condition and let users know when a replacement is due. It refills and recharges automatically and shows how much a user has vaped during a single session.
“This is our inaugural conference after launching UKVIA nearly two years ago,” John Dunne, UKVIA board member, was quoted as saying. “Since then, there has been significant growth which reflects the strong performance of the sector.
“This event will bring together a range of stakeholders – from manufacturers, wholesalers and retailers to industry analysts, health professionals and political figureheads – to participate in thought-provoking discussions and debate around the opportunities for and barriers to growth in the future.”
More information is available at: https://www.eventbrite.co.uk/e/ukvia-vaping-industry-forum-2018-going-for-growth-tickets-41700801219.Butts into compost
The South Korean city of Guri has developed a machine that transforms cigarette butts into compost, according to a story in The Korea Bizwire.
The technology is being tested in the grounds of government offices, where the machine is housed inside a smoking booth.
According to the story, the process uses microorganisms harmless to humans to create usable compost out of the butts – compost that has the added advantage of repelling pests.
The authorities in Guri have indicated they will place cigarette-butt composting-machines around the city after they have concluded the initial trial and conducted an overview of the results.
