Category: Technology

Magic bullet?
IQOS could spell the beginning of the end for combustible cigarettes. But will it receive the required regulatory support?
By George Gay
When Philip Morris International (PMI) reported in February last year that its 2015 cigarette shipment volume was down by 1 percent, CEO Andre Calantzopoulos was able to provide some good news too, part of which described how PMI had significantly expanded the rollout of iQOS—one of its heated tobacco vapor products—in Japan and had introduced it into several new markets. Cigarette volume was down again, this time by 1.4 percent, when the company reported in April 2016 its first-quarter results for 2016, but at that time Calantzopoulos was able to say that PMI was “excited by the progress, best represented by our impressive HeatStick [the consumable insert part of the iQOS system] share momentum in Japan, of our reduced-risk product, iQOS.”
The second quarter, reported in July 2016, saw cigarette volume down by 4.8 percent, but again the news from the vapor front was better. “A highlight of the quarter was our exceptional iQOS performance in Japan, where HeatSticks reached a national share for the quarter of 2.2 percent, demonstrating the tremendous potential of the reduced-risk products category,” Calantzopoulos said in a statement that seemed, in talking of an actual market share rather than generalities, to lift the progress of iQOS onto another plane. And in the third quarter, reported in October 2016, cigarette volume was down by 5.4 percent, but Calantzopoulos was able to say, “We are particularly encouraged by the strong performance of iQOS across all of its launch geographies, particularly in Japan, where HeatSticks recorded a quarterly share of 3.5 percent.”
Three and a half percent. It doesn’t take a genius to figure out where this is going, especially given the fact that, in September 2016, PMI announced that it was inaugurating in Italy its first manufacturing facility for large-scale production of two heated-tobacco alternatives to cigarettes. The initial annual production capacity of the factory, which has involved an investment of about €500 million ($532.12 million), will be about 30 billion units. The announcement was given weight, I believe, by the fact that it was made at an event at the factory in the presence of then Italian Prime Minister Matteo Renzi.
“Our ambition is to lead a full-scale effort to ensure that noncombustible products ultimately replace cigarettes to the benefit of adult smokers, society, our company and our shareholders,” said Calantzopoulos. “This factory is a milestone in our roadmap toward this paradigm shift.”
But if there were still any doubts about PMI’s commitment to heated-tobacco technology, Calantzopoulos disposed of them in announcing toward the end of last year the launch of iQOS in the U.K. At that time, he said he would like to work with governments toward the “phase-out” of conventional cigarettes. He was quoted by the BBC as saying that the company knew its products harmed their consumers and that the only correct response was “to find and commercialize” ones that were less harmful. “That is clearly our objective,” he said.
Long road ahead
Andre Calantzopoulos
Not everyone was won over. The Guardian newspaper quoted Rae Maile, tobacco industry analyst with City of London firm Cenkos Securities, as saying that Calantzopoulos was vague about how long it might take for cigarettes to disappear. “He didn’t say when … so it’s any time in the next century,” Maile said. “There are 1 billion people quite happy with smoking,” he said. “Cigarettes are easy to use, convenient and don’t need recharging. People know the health risks and are willing to accept them.”
Maile was perhaps a little harsh in expecting a timeline for the phase-out, but there’s clearly some truth in what he said. Inertia reigns, and it will take some heavy lifting by a lot of people—some of whom are not used to cooperating with each other—to shift smokers away from their habit. But, then again, sometimes products just capture the imagination. Calantzopoulos said that trials in Japan had shown that 70 percent of smokers stayed with iQOS, compared with a general conversion rate of 20 percent for e-cigarettes.
Maile’s comments hit home, however, partly because of his raising of the convenience issue. But even this has two sides to it. On the one side, a pack of cigarettes and a lighter constitute a very compact and easy-to-use system of nicotine delivery. On the other, cigarettes are not convenient if you are unable to use them in an increasing number of places, even in your own home if you live in some multi-unit dwellings in the U.S. and elsewhere. So clearly, if governments decide that it is preferable that those people determined to use nicotine products vape rather than smoke, they can help in balancing the convenience issue by allowing the use of vapor devices in more places than they allow the use of cigarettes. As Calantzopoulos implied at the launch of iQOS in the U.K., there are good reasons why governments and the vapor industry should work together on these issues—as long as any discussions are open.
Much will depend, no doubt, on how representative Japan’s tobacco and vapor markets turn out to have been. And now that the iQOS manufacturing capacity limitations have been overcome, the U.K. market will be an interesting test from a number of points of view. I’m not a marketing man, but I would be surprised if there wasn’t a fairly large gap between the attitudes and aspirations of Japanese and British nicotine consumers.
Another issue concerns the fact that the authorities in the U.K. have generally embraced the idea of tobacco harm reduction and gone a long way in encouraging smokers to use e-cigarettes to try to quit smoking. Despite what the U.S. Food and Drug Administration and the European Commission might think, e-cigarettes are not tobacco products. But iQOS is a tobacco product—though not a combustible one—and it will be interesting to watch how, if at all, the launch of iQOS shifts the vapor debate in the U.K.
Broad debate
Products such as iQOS have great potential, providing that authorities embrace the principle of harm reduction and implement appropriate regulatory frameworks.
One thing that is certain is that there needs to be a wide-ranging debate about products such as iQOS, Japan Tobacco’s Ploom and British American Tobacco’s Glo. I noticed that the preamble to a question posed last year by a member of the European Parliament to the commission said, in part, “The major difference between iQOS and e-cigarettes is that while the latter use a liquid transformed into vapor, iQOS heats the tobacco and keeps it burning, which is very harmful to health.” The commission, for all its faults, is usually well-informed, and I’m sure that the answer, which I hadn’t seen at the time of writing, will point out the error—and the danger—of using the word “burning,” given that the developers of these products have gone to considerable lengths to ensure that the tobacco they contain is not burned.
Tobacco and vapor companies can go some way toward promoting the harm reduction debate, and, on its website, PMI describes its various vapor products as consumer goods, intended as substitutes for combustible tobacco products. It says that any claim that the use of a particular product is less harmful than is smoking should be backed up by robust science. “Our scientific assessment program follows a step-by-step approach inspired by standards and practices long adopted by the pharmaceutical industry and by guidance issued by the U.S. [Food and Drug Administration’s] Center for Tobacco Products,” it says.
“Our studies on one of our heated-tobacco products, Platform 1 [iQOS], are well-advanced. We have already determined that the aerosol generated by Platform 1 produces 90 to 95 percent less harmful and potentially harmful compounds compared to a reference cigarette, and that the aerosol is 90 to 95 percent less toxic than smoke from a reference cigarette. In a three-month clinical study recently carried out in Japan and the U.S., the average reduction in 15 biomarkers of exposure to 15 harmful and potentially harmful compounds measured in smokers who switched to Platform 1 approached the effect observed in smokers who quit smoking for the duration of the study.
“While conclusions on the risk reduction profile of Platform 1 will be based on the totality of the evidence, such results give us confidence that we are on course with our plans to demonstrate that Platform 1 is not only a reduced-exposure product but also a less harmful alternative for smokers.”
PMI’s science is to be put to the test. In December 2016, the company announced it had submitted to the U.S. Food and Drug Administration’s (FDA) Center for Tobacco Products a modified-risk tobacco product (MRTP) application for its iQOS electronically heated tobacco product. “This is consistent with the company’s stated goal of submitting its MRTP application in 2016,” the company said in a note posted on its website. “PMI anticipates the FDA taking a minimum of 60 days to complete an administrative review to determine whether to accept the application for substantive review.”
There is a lot at stake here, and it is just as well that PMI is making this application. Much of the vapor industry is currently under threat in the U.S. because of the rules brought in by the FDA that have deemed e-cigarettes to be “tobacco products” and that in important aspects are more restrictive than are the rules governing traditional tobacco cigarettes. Some observers have been fighting to put clear water between e-cigarettes and combustible cigarettes and have been hoping that the new administration would be opposed to the deeming rule’s threatening the existence of thousands of small businesses. Launching onto the U.S. market a vapor device that does contain tobacco might complicate the debate and will almost certainly be used by those intractably opposed to vapor products.
Of course, a premarket tobacco product application will be made for iQOS soon, and the product is likely to be on the U.S. market by July, a long while before it receives MRTP certification, assuming that its MRTP application is successful. But if the FDA accepts the MRTP application for “substantive review,” this will go at least some way to placating some of those opposed to vapor products.
If the FDA were to grant an MRTP in respect of iQOS, it would certainly be a game changer given that U.S. consumers proved accepting of the product. But it would probably be as well not to hold our breath. The FDA proved inordinately slow and ultimately unhelpful in assessing the first full MRTP application to be put before it, which had to do with snus, a tobacco product that doesn’t involve inhalation and that has been shown to be protective against Parkinson’s disease (also see “Trailblazer,” page xx).
High stakes
Bonnie Herzog
There is a lot at stake, too, beyond the reduced-risk battleground. Following the announcement by PMI that it had made an MRTP application for iQOS, Altria issued a reminder that it has an exclusive license to sell the product in the U.S. In December 2013, PMI and Altria announced that they had established a strategic framework to commercialize reduced-risk products and e-cigarettes. “Under the terms of a set of licensing, supply and cooperation agreements, Altria will make available its e-cigarette products exclusively to PMI for commercialization outside the United States, and PMI will make available two of its candidate reduced-risk tobacco products exclusively to Altria for commercialization in the United States,” the announcement said.
Bonnie Herzog, managing director of equity research for tobacco (and a number of other business sectors) at Wells Fargo Securities, said that, based on a detailed, 10-year analysis of the market potential for the iQOS platform globally, she believed the product had the potential to change the trajectory of smoking. And, she added, both PMI and Altria had a competitive advantage given iQOS’ “superior technology,” given its “first mover” advantage with commercialization and clinical trials, and given the ability to leverage the ubiquitous Marlboro brand.
In fact, Herzog believes that the iQOS issue could accelerate the acquisition of Altria by PMI. Herzog said that iQOS would be worth more to PMI if it owned Altria because PMI would in that case capture the full sales margin. It would also be able to accelerate the growth of iQOS in the U.S. given that it would then have full control over sales and distribution there, as well as elsewhere in the world.
February 1, 2017
Improving age verification
The subscription vaping-product brand, Shoreditch, says that it has developed, in partnership with Experian, a system ‘to stamp out’ online ordering by those under 18 years of age.
Shoreditch says that it is pioneering a new approach to online age verification for age-restricted tobacco and electronic cigarette products with Prove-ID, an identity checker that confirms online purchases are made by those of a lawful age. It has set itself a benchmark of 90 percent of over-18s.
The founder of Shoreditch, Ryan Shaw, was quoted in a company press note as saying that, as a responsible retailer, Shoreditch had long felt it was not enough for someone simply to tick a box to say they were over 18.
The company had therefore tasked Experian with helping it develop a better system.
Prove-ID age verification had an added age verification layer, which meant Shoreditch could reach its own target of 90 percent of sales to over 18s.
“Experian has been a dream to work with and the results have already exceeded our expectations,” Shaw said.
“Implementation with our website was quick and easy and the system is now up and running.
“We’ve worked closely with the implementation team at Experian to optimise our form fields in order to maximise our user-accept rate and ensure that ordering online is still convenient for our customers.
“Our pass rate is already 86 percent – and rising.”
Prove-ID is said to have been designed for organizations that need to verify the identity of their consumers in order to protect them.
It compared the customer information entered with more than one billion records held by Experian, the press note said.
From there, the system quickly made an informed decision about a customer’s age and either allowed her to proceed with the purchase or declined the order.
Shoreditch is at: www.vapeshoreditch.com
January 26, 2017
Simple, effective technology
C.B. Kaymich has launched its Tank Agitation System (TAS), which has been designed to prevent the separation of liquids containing particles in suspension.
The system was previewed at an exhibition last year and was the subject of a news story here on November 16.
The TAS has been designed to work alongside the company’s Gemini on-line flavour application system to ensure a homogenous mix of liquids.
Kaymich said that the TAS was based on simple technology that effectively and economically reduced melt time for menthol and ensured all substances remained blended.
It could be installed easily by a competent factory engineer.
The TAS comprised a stainless steel impeller and motor, as well as an interface box that was managed and controlled by inclusive software operated through the main Gemini unit.
The pump and impeller were coupled magnetically so the integrity of the tank was not compromised, guaranteeing that it remained leak free.
The TAS is available now with new Gemini units and can be retrofitted to units manufactured from 2013 onwards.
More information is available at: www.kaymich.com/tank-agitation-system or at: info@kaymich.com.
January 19, 2017
E-cigs charge battery sales
Photo by jonnwilliams
Sales of e-cigarettes have contributed significantly to the growth of lithium-ion rechargeable batteries, according to the research firm Packaged Facts.
In its most recent report, Batteries: Consumer Market Trends in the U.S., Packaged Facts estimates the U.S. market for household batteries was $4.5 billion in 2015, up nearly 2.5 percent over 2014’s sales.
The overall market increased at a compound annual growth rate (CAGR) of 2.4 percent for the period 2011 to 2015.
Looking ahead, sales of household batteries will reach $5.2 billion by the year 2020. Lithium-ion rechargeable batteries will see the greatest increase, with a CAGR of almost 12 percent, and surpass alkaline disposable batteries as the largest segment of the overall household batteries category.
Further, lithium will have a 46 percent share of the market in 2020, up from its 34 percent share in 2015. Supporting the rise in rechargeable lithium-ion battery sales is their use in e-cigarettes.
“The market for e-cigarettes as tobacco alternatives has grown at triple digit rates over the past decade. There are signs that the rate has slowed to double digits as smokers go back to real tobacco while product development continues,” comments David Sprinkle, research director, Packaged Facts.
Still, younger smokers seem to account for a growing portion of the consumer base for e-cigarettes and despite the relative slowdown in market growth, the overall trend is toward continued expansion. This is supported by the entry into the market of mainstream tobacco companies.
These companies could well take over the entire market in the next few years. But even if they do not, their participation will lead to greater availability of batteries for e-cigarettes in supermarkets, convenience stores, and other retail outlets in which the batteries have previously lacked traction.
In the current market, it appears that most of the e-cigarette battery sales are through online vendors, which has actually helped grow the internet as a source for battery sales overall.

January 5, 2017
FDA battery safety workshop
The US Food and Drug Administration plans to host a two-day public workshop on battery safety concerns.
The workshop is due to be held on April 19-20 at Silver Spring, Maryland.
It will attempt to ‘gather information and stimulate discussion on battery safety concerns (overheating, fires, explosions, etc.), reducing the risk of incidents, and design parameters related to electronic nicotine delivery systems (ENDS), including e-cigarettes,’ according to a note issued by the FDA’s Center for Tobacco Products.
‘Presentations and panelists will discuss substantive scientific information relating to hazards and risks associated with the use of batteries in ENDS.
‘The FDA also plans to collect information on how these safety hazards and risks are communicated to consumers.
‘A public comment session will be held on April 20, 2017, during which the FDA will accept oral comments.
‘The workshop also will be webcast live, with transcripts posted on the FDA website after the event.’
The note said that a public docket had been established to receive written comments to gather information on hazards and risks associated with the use of batteries in ENDS.
‘Comments submitted via Docket FDA-2016-N-4232 on regulations.gov or by mail to the FDA address listed in the Federal Register notice will be accepted until May 22, 2017,’ the note said.
‘Furthermore, those interested in an informal meeting with the FDA to discuss any of these ENDS battery safety topics are welcome to contact FDA directly at any time.’
Key Dates:
- The deadline to register to attend or request to speak during the public comment session is March 17.
- The date successful registrants will receive registration confirmation is March 21.
• And the deadline to submit public comments is May 22.
January 4, 2017
Fit to burst
Increasingly popular, crushable filters may very well breach the confines of their niche status.
By Stefanie Rossel
Even as global cigarette volumes continue to contract, one product segment is enjoying considerable success—flavor-capsule filter (FCF) cigarettes. First introduced in Japan in 2007, FCF cigarettes have seen impressive growth around the globe since.
“The segment is still relatively small but has doubled in penetration between 2012 and 2015,” says Shane MacGuill, head of tobacco research at Euromonitor International. According to the market research firm, FCF volume grew from 30.91 billion, or 0.6 percent of the global cigarette market (excluding China), in 2012 to 63.18 billion, or 1.2 percent, in 2015.
“Penetration is very high in some markets, particularly Latin America, Japan and the U.K., but there is much lower to negligible penetration in very large markets such as Russia, Indonesia and China, which means that at a global level the category is still niche,” says MacGuill.
FCF products are most popular in Chile, where they accounted for 32 percent of the tobacco market in 2015, followed by Peru (22.8 percent), Guatemala (19.3 percent), Argentina (15.6 percent) and Mexico (13.7 percent). In Sweden, they represented 13 percent. Other important FCF markets are Ireland (10 percent), Slovakia (9.3 percent), Japan (8.4 percent) and the U.K. (7.9 percent). Japan is the largest global market for FCF cigarettes in absolute terms; its FCF volume grew from 9.87 billion sticks in 2012 to 15.4 billion units in 2015.
MacGuill estimates that, on a pro rata basis, the global FCF segment would be worth about $8.4 billion. “However, given the geographic concentration, the true tax-inclusive retail sales price value of the segment could be more like $15 billion,” he notes.
Having started as a feature for premium brands, FCFs have now reached the cigarette mainstream. Increasingly, manufacturers are using the technology as a “premiumizing” tool for their economy and value brands, and in some cases even for localized cigarette brands.
Opportunities ahead
FCF technology allows consumers to customize their smokes by crushing one or more flavor capsules integrated into the filter. Basically, there are two variants: double-mentholated or menthol-to-menthol capsule filters, which allow the smoker to vary the strength of the menthol flavor, and hybrid capsule products, which enable the smoker to turn a regular cigarette into a mentholated version.
While the focus has been on adding a menthol or minty taste, FCF technology is increasingly used to deliver other flavors, too. “We’ve seen a huge increase in combination capsules in the form of products like Pall Mall Double Click and several others,” says MacGuill. “Many of these are launched in Japan, but also in Latin America and Europe, particularly Central and Eastern Europe. Flavors are also becoming more exotic, with grape, berry, even whiskey, as in Winston in Japan, appearing in capsule form.”
The future of the segment will depend largely on regulations. The EU, for example, will ban menthol cigarettes from 2020. Concern about regulation appears to have held up FCF launches in some markets, such as Brazil, but Euromonitor has failed to detect a similar impact in Europe.
For the time being, FCF products remain tremendously popular. Anecdotally, the industry even credits capsule products with luring smokers back from illicit cigarettes, particularly in Latin America. MacGuill expects tobacco companies to sell FCF products for as long as they legally can. There are also large markets with low penetration, he notes, which are unlikely to introduce flavor regulation in the short to medium term. In such markets, there is clear scope for FCF cigarettes to expand.
MacGuill is confident FCF products present further opportunity for the industry. To some extent, he says, the flavor-on-demand option addresses the competition combustible cigarettes face from e-cigarettes, which rely heavily on flavors. Due to its sophistication, FCF technology also makes cigarettes harder to counterfeit.
And then there is China. “We are just beginning to see the emergence of capsule products in China, for example with green tea flavor,” says MacGuill. China, of course, remains off-limits to foreign cigarette manufacturers, but the rise of FCF products there could benefit suppliers. “If the segment achieves only a fraction of share of the Chinese market, it would be bigger than the entire global volume currently,” says MacGuill.

A hard nut to crack – flavored capsules present formidable manufacturing challenges
Hauni’s MCAP detecs missing or surplus capsules. It also monitors filling level and position.
While the commercial potential for FCF products is promising, the manufacturing process is full of challenges. Based on gelatin, the delicate capsule beads need careful handling, not only during production and insertion but also during the reclaiming of tobacco from rejected FCF cigarettes. Too much pressure on the capsule and the flavorant will contaminate equipment and tobacco.
Tobacco machinery manufacturers offer a variety of FCF solutions. In November, Hauni Maschinenbau introduced Flexport-CI, an enhanced version of HCI, the company’s first capsule inserter. According to Hauni, Flexport-CI is the market’s first customer-accepted high-speed capsule inserter.
After thoroughly analyzing the inserting process and its HCI experience, Hauni completely redesigned the vacuum system and the shape of the capsule holding area. The revisions resulted in “a very precise and reliable inserting process,” says Arne Klisch, product consultant at Hauni.
The Flexport-CI can be integrated into Hauni’s KDF 5 and KDF 6 filter makers. To ensure gentle treatment, the beads are transferred by vacuum and sophisticated drum technology. A modified sampling device can eject filters out of the mass flow for immediate quality analysis.
By making many small but effective changes, Hauni was able to nearly double the insertion rate. With a more flexible design, Flexport-CI allows customers to reduce their time to market, according to Klisch.
To test capsules in finished products, Hauni developed MCAP, an online sensor. Based on microwave technology and used in the Max filter assembly unit of a Protos-M cigarette maker, MCAP offers high- quality detection, according to Hauni. “The system offers color-independent detection of missing or surplus capsules and also monitors their filling level and position,” says Klisch.
The MCAP is the only sensor of its kind in series production, according to Hauni. Because the instrument tests every capsule cigarette at the end of the production process, it ejects only individual defective cigarettes, not complete filter rods with four or six capsules each, as happens in the filter rod production process.
Speed with precision and efficiency
Witek Bialas
Capsule filters require a high degree of accuracy during handling, especially as far as the capsule position is concerned. Another factor is flexibility; tobacco companies like the freedom to design a variety of products that will appeal to consumers.
In September, International Tobacco Machinery (ITM) introduced the Capsule Insertion Module (CIM) for its filter maker. “The capsule distribution process is controlled mechanically without centrifugal and gravity force support, transporting each capsule in a gentle way,” says Witek Bialas, director of filter technologies for ITM Poland.
Thanks to specially designed insertion cams, forks and vacuumless servo-drive technology, each capsule is safely transported and placed into the rod without any damage, guaranteeing precision and quality, while ensuring full repeatability of production, according to Bialas.
ITM says that its new capsule insertion technology does not limit the nominal speed of the filter maker when inserting capsules into the rod. It guarantees a speed of 500 meters per minute for the insertion of one or two capsules into the filter on its Polaris single-rod filter maker, with the highest product quality and minimum waste.
Capsule efficiency, Bialas says, is up to 40,000 pieces per minute, with waste of under 2 percent. The CIM can handle filters with lengths of 60 mm to 150 mm and diameters of 5.3 mm to 9.0 mm. Capsule diameter can be from 3 mm up to 3.5 mm, while the capsule position in the filter can be symmetrical or asymmetrical.
“Not only speed is unprecedented in this technology, but also the capsule position in the rod,” says Bialas. “The minimum 10 mm distance between capsules is unique.” The CIM is of modular design, enabling easy implementation to the ITM Polaris filter maker and flexibility to quickly meet the required filter specification, he adds.
To maintain and measure performance, ITM offers MOMS2, a microwave system that monitors the characteristics of the filter material, capsule condition and position.
Each rod is analyzed during the production process. Out-of-specification products are identified and rejected automatically.
Recycling made easy
Heinen Koehl’s ReclaimAir minimizes the risk of tobacco contamination while processing cigarettes with capsule filters.
FCF products present an additional manufacturing challenge in that they make it more difficult to reclaim tobacco from rejected cigarettes. If damaged during the recovery process, a capsule full of menthol or other flavors will contaminate the tobacco that is meant to be recycled. To prevent this scenario, Heinen Koehl has developed ReclaimAir. Depending on the filter type processed, the unit works with one of two different principles. Both start with cigarettes being discharged via a separation belt into a cigarette hopper, where they are buffered and collected piece by piece from the transport belt. With the help of sensors, all cigarettes are orientated with the filter toward the processing side.
For the separation of flavor capsule filters, the tobacco is then blown out of the cigarette tube with compressed air. The flavor capsule remains undamaged inside the filter. Even if the capsule was already faulty when entering the reclaim unit, its contents will not leak into the tobacco to be reclaimed.
When handling charcoal filters, the machine separates the filters from the tobacco rods to avoid the risk of charcoal particles entering the process. This is achieved with circular knives that cut the cigarettes in front of the filter; a vacuum then sucks off the segregated filter.
With its filter removed, the tobacco rod moves to a splitting unit. An additional circular knife opens the enclosed tobacco rod, and the paper and tobacco is discharged onto a separating conveyor.
Heinen Koehl has optimized the ReclaimAir since its introduction at TABEXPO 2015 in London. After successfully completing a long-term test, the machine has been available to customers since Jan. 1. “It’s a booming market, especially in Asia,” says Stefan Hahn, sales manager of tobacco processing technology at Heinen Koehl. “We already have a lot of requests for the ReclaimAir.”
More recovery solutions
ITM, too, offers tobacco reclaiming technologies suitable for FCF products, including the Delphi 2 reclaimer, the Oculus visual sorting system and the Elph filter plug removal machine.
Integrated in-feed separation, a new aligning system and a new gentle opening process allow retrieving tobacco from the capsulated cigarettes with a reclaim efficiency of 95 percent, according to the company.
“The intuitive design of Delphi 2 ensures that no filter plug components are released during the reclaim process, preventing any contamination of the recovered tobacco,” states Bialas. “Oculus can identify a variety of colored capsules within recovered tobacco and automatically reject them from the production flow.”
An adjustable and flexible detection system enables users to determine not only the color but also the size of the capsule. “Sorting accuracy is extremely high—proven at 95 to 100 percent, depending on the color—and precisely controlled rejection gates discard the contamination accurately with the minimal amount of collateral tobacco,” says Bialas. Oculus can be also incorporated into previous Delphi reclaimers.
Elph features a first-stage in-feed separator, which selects single cigarettes from the total waste and transfers them to the positioning module, where accurate identification and location take place before the filter plugs are removed completely. According to ITM, the precursory positioning and cutting system guarantees that even the most complex filter plugs are removed with great precision.
“Reclaimed tobacco contamination is avoided, and efficiency is proven in excess of 99.5 percent,” says Bialas.—S.R.
January 1, 2017
Mission: possible
Emkon provides a peek into tomorrow’s factory.
By Stefanie Rossel
Making the life of operators easier by making the machinery smarter has been a longtime goal of Emkon, a German machinery manufacturer focusing on customized flexible packaging solutions. Under the slogan “Touch the future,” the company presented several innovations in operating and control concepts at its in-house exhibition in November. “The internet of things”—the networking of physical devices—featured prominently during the event.
The centerpiece of the exhibition was Emkon’s new “smart glass” operating panel. Installed on the company’s bundler, Strike, the display covered much of the machine, allowing the operator a comprehensive overview of production processes.
The setup brought to mind scenes from the movie Mission: Impossible, with Tom Cruise manipulating information on a futuristic screen. But instead of presenting classified information crucial to the star’s survival, Emkon’s smart glass enables the operator to check and adjust machine settings so as to optimize performance.
When an error occurs, the glass will turn dark except for a light spot highlighting the problem area. Instead of having to run to a central operating panel, the operator can stay near the machine. His work is further facilitated by the screen’s ability to display the machine’s circuit layout, along with instructional videos on how to fix issues.
The screen can also be used to document format changes and integrate shift schedules. And, since not everyone has Tom Cruise’s stature, the images are automatically presented at a height that is convenient for the operator on duty.
“We had the idea to make intelligent use of the machine’s protective housing because, until then, displays on equipment were never where we would have needed them,” explains Andreas Dittrich, co-founder and managing director of Emkon.
The company is currently fine-tuning its innovation, which is expected to be ready for serial production in May. In the future, all data on the screen will also be transferred to mobile devices. The company is working to mirror the information on the smart glass so that the operator can also see it on the inside after he has opened the machine cover. Emkon also wants to produce 3-D training videos, covering everything from troubleshooting to the construction of a complete machine. A virtual-reality headset will then guide operators through the moves they must make to service the machine.

Intelligence inside
Emkon’s goal is to develop a self-learning machine, with a view to overall equipment effectiveness. To achieve this, the company is working with artificial neural networks. As part of the learning process, Emkon’s apprentices have designed a cocktail-making robot.
The company has also developed technology that allows its machinery to make adjustments in response to environmental conditions such as ambient temperature, humidity and vibration. Emkon’s Flexbag, the company’s first fully modular, in-line stand-up pouch maker (see Tobacco Reporter May 2016) is already equipped with such technology. For example, by processing data from cutting-edge sensors, the machine can detect a bobbin that is operating at a temperature unfavorable to optimal performance. Once the problem has been identified, the machine informs the operator and provides concrete suggestions on how to optimize the process. In the future, a self-learning machine should be able to carry out such adjustments itself.
According to Dittrich, the combination of smart glass, artificial neural networks and sensors with modular machinery will enable a new flexibility of production planning in all industries.
In this brave new world, however, several questions remain, one of them being data security. “Our first step will be to create a local experience of the new technology, as we do with this exhibition,” explains Dittrich. “The technology will then be rolled out within a client’s factory. As a third step, we will establish a point-to-point connection between the customer’s site and Emkon. We are currently experimenting with JavaScript.” Another aspect not yet clarified, he adds, is standardization.
Emkon’s latest developments also reflect the changes the company has undergone since it started in 2000. “Today, machinery construction is only the basis of what we are doing; it’s a means to an end for us to learn,” Dittrich points out. “We are focusing on industry 4.0, i.e., on automation and data exchange in manufacturing technologies. Now that the basic technologies are there, we can translate our visions into reality.”
The company’s staff has changed accordingly—Emkon has hired experts for artificial neural networks and is negotiating with software companies.
Dittrich sees a lot of potential for his company’ services. In the tobacco industry, individualized products will gain at the expense of mass-produced ones, he predicts. “And why not make the most efficient use of the two? For plain packaging of cigarettes, for example, one universal blank for all markets could be produced on a high-speed machine. Afterwards mid-speed machinery adds country-specific features—for example, brand labels, price changes and languages—to packs and/or foils. Proven Emkon labeling technology, such as the Emkon Multipack, is even capable of applying the tax label. And finally, one may add market-specific characteristics via in-line printing to the cigarette pack. As advantages, the raw material won’t age because of quicker turnover, and savings in material will be up to double digits.”

December 1, 2016
One step ahead
Celebrating 25 years in business, ITM Poland demonstrates it is ready for the future—in whatever form that may arrive.
By Taco Tuinstra
ITM Poland started operations in a turbulent time, both for the tobacco industry and the world at large. The collapse of communism in Eastern Europe and the Soviet Union had opened an enormous, previously underserved market for tobacco companies. From Berlin to Vladivostok, millions of smokers were yearning for Western products. But the lifting of the Iron Curtain also created new opportunities for the region’s talented professionals, who were now free to market their skills and cooperate with whomever they wanted.
A veteran of the Polish tobacco monopoly, Andrew Stanikowski didn’t need to think long when ITM CEO Arend van der Sluis Sr. approached him about setting up a Polish division for ITM. Headquartered in the Netherlands, ITM had until then been primarily a rebuilder of existing tobacco machinery, but the company had outgrown its niche and was eager to start developing its own equipment.
Poland was an obvious choice for the new venture, but not for the reason cited by many Western firms at the time. Whereas other foreign companies were attracted primarily by Poland’s low cost of labor, ITM was interested in the quality of the country’s workforce. For all its shortcomings, the former communist regime had invested heavily in technical education, resulting in the widespread availability of skilled engineers.
Excited by the opportunity to work for an international company, the young Polish team started innovating almost immediately. Under the direction of Leszek Sikora—currently CEO of ITM Poland—it developed groundbreaking equipment, such as Capricorn, a revolutionary first-in, first-out rod buffer; Gemini, a flexible filter logistic system; and the Solaris filter combiner. Capricorn, in particular, represented a milestone—not only due to its pioneering technology but also because it put ITM on the map as a manufacturer of new equipment.

Prepared for tomorrow
As ITM Poland celebrates its 25th anniversary, the tobacco industry is again in the midst of transformation—perhaps the biggest since Columbus brought the golden leaf to Europe from the New World. Whereas the venerable combustible cigarette has remained virtually unchanged since its introduction, 150 years ago, today’s modern products are outdated almost the minute they hit the store shelves. Short product life has become the norm, requiring tremendous creativity from technology suppliers. During its anniversary celebration, ITM Poland sought to demonstrate that it is well-prepared for this new dynamic market.
In mid-September, business partners from around the world descended on ITM Poland’s hometown, Radom, to take part in festivities and learn about the company’s latest technical solutions. Company representatives recounted past successes, thanked customers for their support and paid tribute to Arend Van der Sluis Sr., who passed away in March.
Whereas the first day of the event celebrated the past, the second day was about the future. As several speakers pointed out, the greatest challenge is predicting what tomorrow’s products will look like. In the absence of a crystal ball, ITM is building as much flexibility into its products as technology will allow, so that its machinery can evolve along with the product.
In 2014, ITM’s TDC affiliate introduced the Genesis, for example—the industry’s first e-cigarette automated filling and assembly solution. Designed modularly, the machine allows customers to keep up with product changes simply by adding and removing modules.
With the same future-oriented philosophy in mind, ITM presented several new technologies at its Radom event.
In the filter segment, the company launched a capsule-insertion module for its Polaris filter maker, along with a cavity-filling unit and a non-cuttable objects module for its Solaris combiner.
Utilizing the full speed capability of Polaris, the capsule-insertion module operates at an unprecedented speed of 500 meters per minute without compromising insertion accuracy, according to ITM. Features include a double-capsule insertion function and an on-board capsule-presence monitoring system.
The Solaris combiner cavity-filling unit, says ITM, sets new benchmarks for precise cavity creation, filling percentage and product cleanliness. With a built-in monitoring system, the unit is ready for both current and future filling additives.
ITM’s noncuttable objects module creates opportunities to insert new finished component types that differ from the typical base rod into (future) products. The ITM Solaris can combine quadruple products, including ultra-short 5 mm internal segments. The new module allows for novel combinations of finished products. As is the case on all the company’s new filter solutions, an onboard monitoring system ensures quality.
In the rod-handling segment, ITM launched its new Taurus tray unloader. Benefitting from the company’s considerable experience in rod logistics, the machine features a modular construction method with selectable options to fit varying needs and budgets.
ITM’s Delphi II tobacco reclaimer, which was also introduced during the event, builds on the success of its well-established predecessor machine, but has been redesigned to process more complex products. Advances in filter technology, with new materials and components, such as flavor capsules, have made the task of reclaiming tobacco from rejected cigarettes trickier. To prevent contamination of the recovered tobacco, the machine features integrated infeed separation, a new rod-alignment system and the latest in gentle opening technology.
Other reclaiming innovations presented during the event included the Elph plug remover and the Delphini on-line tobacco reclaimer, which guarantees full traceability and eliminates the risk of cross-contamination between brands.
According to ITM, all introduced reclaiming technologies are capable of retrieving tobacco from all existing tobacco products, including the special-purpose tobacco rods used in today’s new-generation products.
Gathering expertise
As it prepares for the future, ITM is not shy about borrowing ideas and best practices from other industries. To expand its skills and knowledge, the company has been on a bit of a buying spree lately, snapping up companies that complement its core business. ITM’s recent acquisition, Tricas Industrial Design & Engineering, is a good example. The company uses crossover innovation to apply proven technologies from other industries in the tobacco industry.
In 2013, ITM acquired IMAtec of Luxembourg, a supplier of packing equipment for other tobacco products. IMATec’s portfolio includes cigarette paper booklet machines, pouch makers, clear-wrap kits, shrink kits and end-of-line packaging equipment.
Combining the companies’ teams has enabled ITM to offer complete packing solutions from concept to machine acceptance. In addition, it can now produce prototypes and mockups. The company will also be offering efficiency improvement services.
In 2015, ITM purchased Gemba Solutions. Based in Atherstone, U.K., Gemba specializes in overall equipment effectiveness software and continuous-improvement services that maximize production efficiency, increase throughput, reduce inventory and provide all-round visibility into factory operations and processes.
And, earlier this year, ITM teamed up with EME-Engel from Zaandam, the Netherlands. With more than 75 years of experience, EME-Engel specializes in liquid-pouch packing. It offers a broad spectrum of solutions, from concept to final design and production. According to ITM, the new partnership provides a platform for crossover innovation, enabling it to apply technologies from other industries to tobacco applications and vice versa.
In the meantime, ITM has been paying close attention to “Industry 4.0,” the trend of automation and data exchange in manufacturing technologies. As machines become “smarter,” they are increasingly able to communicate with their operators and one another. By making clever use of the data generated, manufacturers can greatly improve the efficiency of their operations, minimizing downtime and optimizing performance. The Solaris Athena platform, which was also introduced during the event, is a good example. It allows all parts of the filter combiner to communicate with one another, provides full access to date and facilitates decisionmaking.
The tobacco industry has changed significantly since ITM established its activity in Poland. But, as became clear during the Radom celebration, the company has evolved with the market, sometimes even developing new technologies that enable customers to manufacture products that don’t exist yet. As a result, ITM appears well-positioned to enter the next chapter of its history, no matter how turbulent the new environment may be.
December 1, 2016
Measuring the future
Changing consumer preferences and stricter regulations bring about a range of new business opportunities for suppliers of tobacco testing equipment.
By Stefanie Rossel
“Transition” is probably the word that best describes the state the tobacco industry has been in for some years now. In 2013, global cigarette sales volumes shrank for the first time, even when including China. At the same time, a new product category, electronic nicotine-delivery systems (ENDS), experienced unprecedented growth and sparked further innovation, such as heated tobacco products.
Regulation continues to increase around the world, the implementation of the revised Tobacco Products Directive (TPD2) in the EU and the launch of the Food and Drug Administration’s (FDA) deeming regulations in the U.S. being the latest examples. Following these developments, the leading tobacco manufacturers have closed down many of their cigarette factories in developed markets and concentrated production at other sites, mainly in Asia.
Whether the changing business environment presents more challenges or more opportunities to suppliers of laboratory testing equipment depends on various factors, including their specific focus, their ability to adapt to customers’ evolving needs and, of course—the great unknown—the future development of the ever more fragmented tobacco products market.
“The big majority of the testing equipment for the tobacco market so far was designed to meet the requirements of uniform products, such as conventional cigarettes,” says Marc Naruga, managing director of Borgwaldt KC, a German supplier of smoking machines and equipment for physical testing. “While these requirements still have to be satisfied, a complete new field of next-generation products [NGPs] have arisen on the market. [These products] vary in shape, size, function and testing requirements from the conventional tobacco product. Enhanced engineering and customization is necessary to meet these new requirements.”
In terms of testing instruments, he adds, the market is moving away from a “one size fits all” approach toward a customized-solutions philosophy. “Working in such a transition time requires adjusted skill sets for the entire company, adding to a manufacturer of testing equipment the agility and know-how of an engineering company,” says Naruga.
Meanwhile, regulation is affecting testing equipment suppliers in different ways. More manufacturers are seeking the services from suppliers of testing and testing equipment, according to Mike Taylor, director of scientific development at Essentra Scientific Services. “Many manufacturers prefer independent testing of their products for regulatory purposes from reputed and accredited laboratories, allowing them to highlight that their products have been tested externally and giving credibility to the validity of the results.”
In contrast, Juergen Kroeger, key account manager of tobacco at Tews Elektronik, has noted considerably reduced investment in new equipment following the introduction of TPD2: “The industry was occupied with internal projects to fulfill TPD2 requirements. We expect that the industry’s investments into measurement equipment will get back to normal from next year on when all regulations have been fulfilled.”
A similar effect came from cigarette manufacturers’ efforts to optimize their production footprints. “Clearly we are seeing a reduced demand for instrumentation, as there are a lot of plant consolidations and closures; though, having said that, China after a period of delayed business is now opening up again,” says Ian Benson, global marketing director of NDC Technologies.
“For companies like NDC, with a large installed base of instrumentation, there will continue to be a replacement market which in itself will be quite significant,” he adds. “This is offset with the industry change where plants that are closing redistribute their instrumentation; in the past this would not have happened.”
Benson says NGPs could represent an opportunity for his company. Heated tobacco products in particular require many measurements. However, if NGPs end up being dominated by vapor products, the future may be less rosy for traditional tobacco instrumentation suppliers. “We are keeping a careful eye on the changes,” says Benson.
More complex requirements
As the market gets more complex, so do customers’ requirements for analysis. Manufacturers are asking for more precision, greater flexibility, further automation, more consistent results and the ability to measure more parameters, among other things.
In vitro testing, too, is becoming more important. Paul Glenn, sales and marketing director of Cerulean, says there is increased emphasis on compliance with current good manufacturing practices and good laboratory practices. “Layered on this are the demands of regulatory testing, which have driven so many thoughts in the last 12 months,” he says.
“The world is changing at a faster pace,” observes Hannjoerg Steiner, sales and business development manager at Carl Zeiss Spectroscopy. “Yesterday it was enough to measure moisture with a lot of drawbacks of an outdated technology; now the customer wants to understand his whole process, for example in the primary, by measuring all parameters. The future will be the ‘industry 4.0,’ which means that web-based communication between PCs, machines and humans is the name of the game; our equipment has already been designed for these challenges,” says Steiner.
“Customers want to get more connected instruments with quicker response and less labor cost,” says Eric Favre, managing director of Sodim. “Besides, they are in a hurry to develop new smoking products, and testing equipment suppliers have to adapt and respond more quickly than in the past. These new smoking products need, for example, automatic aspect/visual controls requiring new types of sensors like cameras or, for vaping products, a new range of devices.”
According to Naruga, many of the new tobacco products also have testing requirements that cannot be fulfilled by today’s equipment, so new, different testing methods are needed, as well.
A host of novelties
Recent developments in testing equipment and services reflect instrumentation suppliers’ efforts to serve the evolving market. Essentra Scientific Services, for example, has greatly increased its capacity for e-cigarette testing ahead of TPD2. “We have a seen a large increase in testing of these products over the last three to four years,” Taylor explains. “In addition, the TPD has driven a significant number of enquiries this year as customers aim to meet the requirements.”
Glenn has also noted considerable TPD2-related activity as e-cigarettes manufacturers, particularly those outside the Big Tobacco fold, must decide whether to develop in-house testing and quality- assurance facilities or contract those activities to a third party. “Consequently, there has been a notable expansion of testing capability in the industry, and this has demanded more equipment to perform tests,” he says.
Cerulean is constantly developing and evolving products and aims to bring two or three new products to market each year. “Over the past 12 months our focus has been very much on laboratory testing. Inevitably, with the adoption of the deeming regulations in the U.S. and TPD2 in Europe, this has meant testing of products other than the traditional burn-down cigarettes we are familiar with,” says Glenn.
“We have released a high-volume smoking machine specifically designed for testing emissions from shisha tobacco, a 20-port e-cigarette vaping machine to up the throughput in ENDS testing over our utilitarian CETI8 machine, and we are just about to release the Orbit 20, which is a rotary smoking machine optimized for intensive burn-down regimes and quick changeover for ENDS testing. This last product has taken the research that shows the inconstancies associated with large capture dead volume and eliminated these in a reliable mechanical package,” he says.
According to Glenn, new product categories are always challenging, as the certainties of testing traditional products are no longer there.
“There is a desire to service customer needs, and we have had to take a view on these products and try to anticipate what will be required for testing—often when the people making these new devices are equally unsure what they require!” he says. “We identified a need for e-cigarette testing and produced a modestly priced vaping machine before the needs of this new category were known. The rapid development of emission testing standards led the way to obvious test equipment improvements.”
In June 2015, Coresta published a recommended method for aerosol generation with a puffing regime that is used by many laboratories. “Consequently, in nine months we went from the MK1 to MK3 as these needs emerged,” says Glenn. “The next development in heat-not-burn or e-cigarettes may bring with it the need for equally radical products and an equally rapid development cycle.”
Focus on NGPs
For Vitrocell, the changes in the tobacco landscape have generated additional business, too. In the past 12 months the company has introduced more than 10 new products in the areas of exposure systems, smoking machines and dosimetry, according to managing director Tobias Krebs.
“For the requirements of smoking e-cigarettes as well as conventional cigarettes we introduced the smoking machine VC 10 S-Type,” he says. “The machine has a new platform concept, which allows for easy handling, fast cleaning and quick product change times. In this product segment we also just introduced our new multichannel VC 1 smoking machine with up to eight independently working syringe units, which perfectly complement our exposure systems for higher throughput, such as the well-characterized Vitrocell 24/48 system. The new Ames 48 and 6/48 systems for mammalian cells are also based upon this technology.”
Following the customized-solutions philosophy, Borgwaldt KC has launched a family of smoking machines covering several applications. “This family consists of a syringe module hosting also the control unit, as well as several smoking or even vaporing racks for applications such as smoking conventional cigarettes or cigars but also e-cigarettes and heat-not-burn products,” says Naruga.
“Either mainstream smoke or sidestream smoke can be captured, and even an add-on module for in vitro smoking is available,” he adds. “In addition, Borgwaldt KC debuted a new rotary smoking machine designed for efficient and fast rotary smoking under Health Canada’s “intense” standard. Concerning physical testing we have added to our portfolio a module to determine pressure drop of vaping products to satisfy the increased demand for such a device.”
Meanwhile, Borgwaldt KC’s sister company, Analytical Service Laboratory (ASL), has extended its range of analytical services. “Together with Hauni Maschinenbau, Borgwaldt Flavor, ASL and Borgwaldt KC, a competence center has been established to look at new vaping and heat-not-burn products or conventional products with new features in their entirety. It is unique to offer customers consulting and guidance as well as product solutions completely out of one hand covering manufacturing, flavoring, liquids, analytical testing service, as well as testing instrumentation.”
Assuring quality products
Sodim offers a range of modular “plug and play” solutions for rod analysis, including a rod channel-detection system designed to recognize off-line the family of cigarettes and, in the case of a double rod maker, the channel that produces the cigarettes. It is compatible with different makers and filter colors.
There are also a section inspection system, designed to analyze any type of rod with a high- performance camera, and a cutter module. The latter has been developed to reduce the labor required for preparing samples for the Sodiline series test station, with which all systems are fully compatible.
Sodiscan-MWS, a fast automatic measuring device, detects capsules inside a rod. “Because of TPD2, the pack design will no longer be a differentiation factor of the brand,” says Favre. “The differentiation is now made inside the cigarette packs, mainly through the filters section. This new approach has been taken into account by Sodim in its strategy of product development for analyzing/controlling this particular visual aspect.”
Tews, meanwhile, is constantly developing its software and hardware. Recently the company implemented a hardware upgrade that doubled the accuracy of its MW 4420 test station. The industry, says Kroeger, requires quick and precise determination of the moisture content at all relevant measuring spots in a primary department. “Tews lab instruments deliver results within a second while drying ovens or other methods require up to half an hour or even more,” he says.
Two measurement options
In the primary, as well as in green-leaf threshing, the main parameters remain moisture and oven volatiles, nicotine, and sugar. As regulation increases, however, customers are interested in additional parameters, such as menthol, nitrates, chloride, ammonia and glycerin. How these can be best analyzed has become a matter of debate in recent years.
Perten Instruments believes that diode array (DA) near-infrared technology (NIR) is the way to go since it accurately measures moisture and total volatiles without the need for constant recalibrations. At the end of 2015, the company introduced the DA 7440T on-line NIR diode array sensor. “Seamlessly integrating into existing control systems, the unique capability of the DA 7440T separates it from previous generations of moisture meters with its ability to provide full spectral analysis of more components of tobacco and additives than is possible with older filter technology,” says Malcolm Littlewood, business development manager at Perten.
The company also launched the DA 7250, an at-line/laboratory spectrometer that provides rapid analysis of product samples. “The performance of the instrument is equivalent to the reference method but providing results in less than 10 seconds,” says Littlewood. “Using the same spectrometer design as the DA 7440T, it provides a valuable reliable link to validate on-line instrument performance whilst maintaining the standard analysis reference method.”
According to Perten, both the DA 7250 and the DA 7440T require only one calibration model for all of a customer’s tobacco blends, thus reducing laboratory work. As both instruments utilize a “full spectrum” design, effects of ambient conditions are accounted for, providing a robust and reliable prediction for control systems, according to Perten.
Carl Zeiss Spectroscopy’s instrumentation is also based on DA technology. “The main problem is that, by the reference method, loss on drying (LOD), all volatile components—not only water—are being determined, whereas conventional filter NIR instruments only measure water,” Steiner explains. “Therefore there is always a difference in values measured by LOD and filter NIR.”
The company has developed two instruments, Corona Turnstep for laboratory use and Corona Process for on-line use. “Both can measure the following parameters in raw tobacco, cut leaf, cut-rolled stem, cut rag and reconstituted tobacco: moisture, nicotine, sugar, propylene glycol, glycerin, ammonia, nitrate, chloride, menthol,” says Steiner. “What sets Corona Process apart from its competitors is that it can also measure the color of tobacco.”
NDC Technologies follows a different path. The company has launched several products this year, among them the on-line/in-process TM710e V, which measures more closely what the laboratory oven test measures—that is, weight loss on drying, which is expressed as total volatiles or oven volatiles by the industry, Benson points out.
“The same unique measurement has also been added to the new InfraLab at-line analyzer. We have achieved some very good results in the field, and in competitive tests have shown outstanding performance positioning us as the only supplier to offer a truly robust measurement of this key parameter,” says Benson.
Because NDC now offers a total volatiles measurement instead of just moisture, the measurement correlates better with the oven reference test and so reduces hugely calibration requirements.
“An on-line or at-line instrument must not be affected by ambient lighting, atmospheric humidity, tobacco pass height, ambient and product temperature,” says Benson. According to him, NDC’s instruments offer robust measurements unaffected by these attributes and so can be confidently used in closed-loop control to optimize a tobacco process. NDC also has laser, X-ray, microwave, nucleonic and ultrasonic measurement capability.
October 30, 2016
A handy tool
Originally developed to reduce cost, reconstituted tobacco helps tobacco companies custom-design their blends, including for novel nicotine products.
By George Gay
As is my custom, I would like to start off by writing about something of which I know very little: in this case tea. Although I’m English, I’ve never drunk tea, but I have spent years surrounded by people who are steeped in it, and I have noticed that whereas some years ago the people of my acquaintance who drank tea mostly brewed it from leaves, now they mainly use teabags. At first, people tended to look down their noses at teabags because they didn’t contain ‘real tea’, and I often heard people say that teabags contained only tea-dust swept up from the factory floor. I have no idea whether or not this was true, but it is obvious that people came to see the advantages offered by such a product, not least its convenience. It was a product that had been engineered for its time; or perhaps it was a piece of product engineering that allowed cultural shifts that people were ready to embrace.
Tea can be compared with tobacco in this regard. Once upon a time, tobacco waste was waste; but 40 or so years ago it was found that this “waste” could be swept up and made into reconstituted tobacco, which could be included as a proportion of a tobacco blend. As with tea, at first, reconstituted tobacco was seen very much as the poor relation of the blend, but manufacturers came to realize that this tobacco offered advantages, especially in regard to blend stabilization and, of course, costs.
Across the world, the products that we use are becoming more engineered, and, wherever possible, waste is being eliminated, if not for its own sake, at least in the name of cost savings. Reconstituted tobacco virtually eliminates tobacco waste, and its engineering is becoming ever-more sophisticated—even to the point where the possibility of customized tobacco, and therefore customized tobacco products, is a reality. Reconstituted tobacco might not be the future, as some might imagine it to be, but it has to be a significant player in the future.
Designer tobacco
Most people working within the tobacco industry are probably aware of this direction of travel, but what some probably don’t appreciate is just how far this tobacco engineering can go in helping manufacturers develop their products.
Perhaps the ultimate engineering of a tobacco product to date is to be seen in heat-not-burn vapor devices, which, by including tobacco, have been engineered so as to nudge up close to traditional combustible cigarettes in relation to their taste profiles, but, in not burning that tobacco, have been designed so as to open up a gap in relation to the level of risk that they pose to the consumer.
Reconstituted tobacco, I am told, is a necessary component of heat-not-burn products, because the tobacco they contain has to be closely designed. This, apparently, is not possible to achieve with leaf tobacco even if a manufacturer were willing to use genetically modified leaf, but reconstituted tobacco can deliver, for instance, a single American-blend sheet that includes specified levels of flue-cured, Burley and oriental tobaccos, and that delivers a specified level of nicotine.
Looking at this issue from another direction, Iqbal Lambat, the CEO of Star Tobacco International, said it was clear that the use of reconstituted tobacco in novel nicotine products (NNPs), such as heat-not-burn devices, was logical because it was significantly cheaper than most cheap tobaccos on offer.
But he wasn’t getting over-excited about this development. Reconstituted tobacco’s growth in this category, he said, would be directly proportional to the success of the category, and since most market studies at this stage pointed to a market share for NNPs of 3-5 percent of global consumption by 2030 at the earliest, it was not currently seen as a game changer for reconstituted-tobacco utilization growth.
Asked about the current and future utilization of reconstituted tobacco in all tobacco products, Lambat estimated that demand was currently at the level of about 350,000 tons a year, a figure that he believed would continue to rise given that increasing legislation would favor the development of more low-tar and nicotine products.
Other uses
Some people are slightly less optimistic in this regard. They point to the fact that the worldwide cigarette market is slowly declining and that while it might be the case that reconstituted tobacco will take a larger share of the filler component of cigarettes in the future, that increase will offset rather than compensate for the decline in cigarette sales.
Most reconstituted tobacco is used as a filler in cigarettes, but this is by no means the only use. It is used also as a cigar filler, binder, wrapper and tipping paper. And generally speaking, the demand for reconstituted cigar tobacco is more stable than that for cigarette filler, though that demand has taken a severe hit in recent times and is about to suffer another. The first hit came with the advent of the EU’s revised Tobacco Products Directive, which brought in a minimum weight for cigars that basically wiped out overnight the reconstituted tobacco wrapper business in Europe. From that point, all of the small, reconstituted-tobacco cigars became liable to be taxed as cigarettes, something that took away their main selling point—price.
The second hit to the cigar business is being delivered through the U.S. Food and Drug Administration’s so-called deeming regulations that require cigar manufacturers to undertake a burdensome and expensive approval process in respect of new products, and that are likely to put a brake on product development.
But none of this means that the reconstituted tobacco cigar business is slowing down. Far from it. In recent years the speed of manufacture of cigars has reached the low end of cigarette manufacturing speeds, and the reconstituted tobacco used in these processes has had to be developed to meet the challenges of these new manufacturing capacities. With the increased speeds, the mechanical strength of the reconstituted tobacco used for manufacturing cigars has had to be increased so that it can be used on machines capable of making up to 4,000 pieces a minute.
Something for everybody
But perhaps the real opportunities will arise because of the move to more-customized tobacco products and the ability of reconstituted tobacco to deliver such customization. The demand for increasingly customized products is one that cuts across most types of products, from cars to computers and from bicycles to sandwiches, and so whereas previously a reconstituted-tobacco company might have had one product that fitted all demands, now it has to have many different products to meet the specific needs of individual customers. Customers now want reconstituted products in different sizes with different mechanical properties. Some want these sheets to glue more quickly than run-of-the-mill products, and some want them to be water resistant. And customers now look for different flavors and different colors. In all, there are something like 100 different characteristics that can be specified.
Interestingly, this offer of customization arises at a time when the exact opposite seems to be happening, when brands are being merged; so perhaps the smoker of the future will have more choice than smokers do now. Regulations allowing, manufacturers will have the opportunity of offering cigarettes with specific characteristics to do with deliveries, tastes and smoke profiles.
And even more interesting, perhaps, is the fact that it is possible to incorporate all of the tobaccos needed for a blend into one reconstituted sheet; so, in theory, eventually all tobacco companies could get rid of their blending departments. In fact, the thing that is holding up such a development is perhaps not to do with reconstituted-tobacco technology, but with the fact that tobacco companies are currently focused on meeting other challenges, such as those concerning legislative changes.
Manufacturing technologies
There are a number of different methods for producing reconstituted tobacco from, for instance, stems, scraps, dust and fines, individually or in combination. But as Lambat said, the most common reconstituted tobacco is made using the paper process, which originated in the 1970s with Kimberly Clark USA technology. At that time, reconstituted tobacco was purely a cost-saving technology for using up fines and tobacco waste, he said. But over time, reconstituted tobacco had become a core ingredient in blends and been manufactured as a distinctive type or grade.
Various technologies had been developed during the past 10 to 15 years, notably “slurry technology,” which used a vegetable binder, and “nano fiber technology,” which was a much-improved form of the paper process, delivering reconstituted tobacco with high filling power, high aroma, good burning qualities and taste enhancement. Star offered from Brazil reconstituted tobacco produced using the nano fiber technique, and reconstituted tobacco from China made using the paper-making technique.
Whatever the technique, reconstituted tobacco can offer much. It is a stable product that suffers less from crop variation than does leaf, which is an advantage when the aim is to produce a product with the same taste year after year. It offers manufacturers financial advantages, and control advantages, such as in respect of nicotine and tar levels. It offers advantages when it comes to designing new products or modifying existing ones.
But the main application for reconstituted tobacco, Lambat said, was to develop tobacco blends with reduced tar and nicotine deliveries, and to help smooth and round-up the smoke taste in combustion products such as cigarettes and cigars. And because reconstituted tobacco had a higher filling power than did leaf tobacco, cigarettes made from blends with reconstituted tobacco required up to 10 percent lower tobacco usage. This, he said, went center stage towards cost reduction.
The cost/price argument is compelling. Lambat said that some customers were willing to pay $8-10 for top Zimbabwe flue-cured tobacco grades; so the question arose as to what they would be willing to pay for Zimbabwe reconstituted tobacco that had a similar color line but slightly reduced chemistry. The same question arose in the case of, say, Malawi Burley and Turkey’s Izmir oriental. Izmir leaf, he said, sold for in excess of $10 per kg, but the cost of Izmir scraps and stems would allow reconstituted Izmir to be offered for $4 per kg, which would represent a substantial discount for the buyer while still generating a healthy margin for the reconstituted tobacco manufacturer.
Star, in fact, offers reconstituted oriental tobacco. And it has developed a reconstituted kretek tobacco, which, Lambat said, was being tested by some of the leading Indonesian cigarette manufacturers, “with initial reviews pointing to a successful breakthrough.”
Still with customized products, IOTO International offers reconstituted tobacco out of its Brazil and U.S. (IOTO USA) plants using its patented TREX process to produce a range of reconstituted products, including US blends and single varieties, such as Burley and oriental.
Marcel Astolphe, the general manager of IOTO International, said the TREX process could use all kinds of tobacco by-products, supplied by its customers or sourced by IOTO, to generate reconstituted tobacco as bobbins, square pieces, shredded sheet or cut-filler.
The company has sold machinery and licensed the TREX process to clients in the U.S. and Russia. It is involved also in a joint venture with Alliance one in Purilum, which is specialized in the development of e-liquids and e-liquid flavors.
October 1, 2016