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  • Illegal Cigarette Factory Dismantled in Latvia

    Illegal Cigarette Factory Dismantled in Latvia

    Photo: Europol

    Latvian authorities dismantled a large illegal cigarette factory last week.

    The massive illegal manufacturing site was fully equipped with production machinery and raw materials. Police detained 32 people and seized nearly 300 million cigarettes, along with approximately 47 tons of leaf tobacco.

    If the cigarettes had entered the market, they would have deprived the Latvian state of more than €75 million in revenues, according to authorities.

    Searches were conducted simultaneously at multiple locations. Police carried out 26 searches in Riga, discovering warehouses containing cigarettes and detaining seven individuals, including six Latvian and one Russian national.

    Meanwhile, the state border guard carried conducted eight searches in Ludza, Rēzekne and Daugavpils, detaining 25 Ukrainian nationals at the Ludza factory, where counterfeit cigarettes were being manufactured under well-known brand names.

    The investigation was supported by Europol, which provided analytical support, and the Lithuanian Customs Criminal Service.

  • STMA Appoints New Deputy Director

    STMA Appoints New Deputy Director

    China’s State Tobacco Monopoly Administration (STMA) has appointed Liu Sanjiang as its deputy director, reports 2Firsts.

    Previously, Liu served as the director of the department of quality development at the State Administration for Market Regulation,

    This appointment follows a series of corruption investigations targeting senior STMA officials.

    The STMA is the country’s official regulatory body overseeing the tobacco industry and market, including NGPs such as e-cigarettes.

  • PMI Settles D.C. Flavor Ban Violations Case

    PMI Settles D.C. Flavor Ban Violations Case

    Image: PMI

    Swedish Match North America (SMNA) will pay $1.2 million to settle an investigation into violations of Washington D.C.’s flavored tobacco ban, reports Reuters.

    The District of Columbia attorney general’s office accused SMNA of facilitating online sales of “tens of thousands” of flavored Zyn nicotine pouches to D.C. consumers between Oct. 1, 2022, when the ban was enacted, and June 30, 2024.

    SMNA parent company Philip Morris International must now monitor its distributor’s compliance with D.C.’s ban quarterly and stop sales of flavored Zyn pouches through Zyn.com and related e-commerce platforms.

    Nicotine pouches became the second most commonly used tobacco product in the U.S. after combustible cigarettes, according to the Centers for Disease Control and Prevention.

    PMI suspended sales on Zyn.com after it had been issued a subpoena by the D.C. attorney general earlier this year.

    Swedish Match would continue to focus on its brick-and-mortar stores, PMI said in a statement e-mailed to Reuters.

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  • Bangladesh to Ban E-cigarette Imports

    Bangladesh to Ban E-cigarette Imports

    Bangladesh will ban the import of e-cigarettes and related products, reports bdnews24.

     According to a statement issued by the cabinet division, the health services division proposed to take urgent measures to ban the import of all products tied to the electronic nicotine delivery systems or e-cigarettes “to protect public health and keep future generations safe.”

     After the discussion, it was decided that e-cigarettes will be included in the list of banned products in the import policy order of the ministry of commerce.

  • FDA Submits Proposal to Limit Nicotine

    FDA Submits Proposal to Limit Nicotine

    The U.S. Food and Drug Administration has submitted a proposal to limit the amount of nicotine in tobacco products, reports CNN.

    The FDA has been discussing limiting nicotine levels since 2018, and this week, the FDA submitted the proposal to the Office of Management and Budget (OMB). This move comes as the Biden administration enters into its last weeks and President-elect Donald Trump prepares to take office in January 2025.

    “A proposed product standard to establish a maximum nicotine level to reduce the addictiveness of cigarettes and certain combusted tobacco products, when finalized, would be among the most impactful population-level actions in the history of U.S. tobacco product regulation,” the FDA said in a statement.

    “Once finalized, this rule could be a game-changer in our nation’s efforts to eliminate tobacco use,” said Harold Wimmer, president and CEO of the American Lung Association. “Making tobacco products nonaddictive would dramatically reduce the number of young people who become hooked when they are experimenting. To fully address the toll of tobacco on our nation’s health and across all communities, it is critical to reduce nicotine levels to nonaddictive levels in all commercial tobacco products, including e-cigarettes.”

    “Certainly, there would be individuals who would benefit from substantially lower nicotine levels and find it easier to quit,” said Rose Marie Robertson, a cardiologist and chief science officer at the American Heart Association. “It’s really hard to quit. I’ve seen patients over many years who have gotten the wake-up call with a heart attack or a stroke and really want to improve their health and reduce their risk, but it’s just very, very hard to do.”

    The submitted proposal does not mean that there will be any immediate changes. The OMB’s approval process can take months, and there must be a public comment period. It is likely that the tobacco industry will sue the government as well, as has been seen with other proposed regulations.

    It is unclear what will happen with the proposal following the change in presidency. In Trump’s first term, the Trump administration signaled that it wanted to limit nicotine, but during this year’s election season, the tobacco industry donated heavily to Republicans, and Trump’s pick for chief of staff was previously a tobacco lobbyist.

  • BAT on Track To Deliver Fiscal Year Guidance

    BAT on Track To Deliver Fiscal Year Guidance

    Image: BAT

    British American Tobacco said it is on track to deliver its fiscal year guidance, with 2024 investment driving positive momentum toward long-term sustainable growth

    “Our second-half performance acceleration is driven by the phasing of new categories innovation, the benefits of investment in U.S. commercial actions and the unwind of wholesaler inventory movements,” said BAT CEO Tadeu Marroco in a statement.

    “In October, I was delighted to host our capital markets day together with our management team in our Innovation Centre in Southampton. This event demonstrated how BAT’s science, innovation, breadth of capabilities and people can combine to achieve a smokeless world and deliver long-term sustainable value for all our stakeholders. We continue to make progress towards our ambition of becoming a predominantly smokeless business by 2035.

    “Our ‘quality growth’ imperative is delivering higher returns on more targeted investments across all three new categories, and that prioritization and focus is already transforming our business in Europe. We are making further progress increasing profitability across new categories, and I am particularly pleased with the improvements in heated products and modern oral.

    “In the U.S., I am encouraged that our investment approach, taken over the last 18 months to strengthen our business, is working, despite a challenging macro-economic backdrop. Through our commercial actions, we have invested in our portfolio and improved our executional capabilities. With these previously announced plans now completed, we can prioritize driving sharper execution and opening incremental white space, related to modern oral.

    “We continue to prioritize shaping a sustainable future and call for more appropriate regulation and enforcement of new categories, including vapor in the U.S. and Canada.

    “We are making good progress and while there is still more to do, I believe that the choices we have made and the actions we are taking through this investment year are the right way forward for BAT.”

  • Commission Urged to Harmonize Tax on Vapes

    Commission Urged to Harmonize Tax on Vapes

    Sixteen EU member states asked the European Commission on Dec. 9 to expand tobacco taxation laws to include new nicotine products such as e-cigarettes.

    The initiative, led by the Netherlands, is supported by Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia, and Portugal.

    In a letter to the Commission, finance ministers from the countries say an update to the bloc’s 2011 EU tobacco taxation law is needed because – in the absence of EU regulations on vaping – each country now applies different rules and levels of excise tax, distorting the bloc’s single market.

    “Based on the current directive, most of these products cannot be taxed like traditional tobacco products. The provisions of the current directive are insufficient or too narrow to meet the challenges faced by the administrations of Member States given the ever-evolving offerings of the tobacco industry,” said the joint letter, seen by Reuters.

    “Due to shortcomings in the EU legislation, Member States have taken appropriate actions at the national level. This has led to fragmentation, an uneven playing field and, ultimately, to the distortion of our internal market,” it said.

    An update to the EU tobacco taxation law was due at the end of 2022.

    The governments that wrote the letter want the new Commission, which took office on Dec. 1 for the next five years, to address this urgently.

  • Stingfree Completes SEK5 Million Share Issue

    Stingfree Completes SEK5 Million Share Issue

    Photo: Stingfree

    Stingfree, a snus startup based in Sweden, has completed a new share issue of SEK5 million ($460,000) in November, resulting in a company valuation of SEK40.6 million.

    Demonstrating his confidence in the company’s future, billionaire entrepreneur Erik Selin increased his ownership stake from 15.8 percent to 21.9 percent.

    Stingfree offers a patented integrated gum protection product, effectively reducing burning, corrosion and irritation of the gums and thus enabling nicotine pouch use without discomfort.

    A spring 2024 pilot study in Sweden revealed significant declines in snus- and pouch-related oral health problems, such as oral lesions and inflamed gums after participants switched from their regular brands to a Stingfree nicotine pouch product for five weeks.

    Twenty out of the 23 dentists participating in the study now recommend Stingfree nicotine pouches to pouch using patients who cannot or do not wish to quit.

    “Injuries to the oral mucosa and gums are a common consequence of pouch use, regardless of whether the snus contains tobacco or is tobacco-free (nicotine pouches). Independent dental studies in Sweden and Norway published in 2022-2023 indicate that the prevalence of snus lesions affects as many as 70-90 percent of all users, which corresponds to over 1.2 million users in just Sweden and Norway.

    Our goal is for Stingfree nicotine pouches to become a new alternative standard for this category of oral nicotine products, as natural as light beverages are for soft drinks and GoreTex is for clothing and shoes.

    Daniel Wiberg, CEO, Stingfree

    “While other manufacturers compete on flavor and strength, we offer something truly unique—a solution that can actually improve the user’s oral health,” said CEO Daniel Wiberg.

    “Our goal is for Stingfree nicotine pouches to become a new alternative standard for this category of oral nicotine products, as natural as light beverages are for soft drinks and GoreTex is for clothing and shoes,” he added.

    “Our surveys with over 1,000 participating Swedish snus and nicotine pouch users also show that 67 percent of women and 53 percent of men dislike the burning sensation and the irritation on the gums” said Stingfree founder Bengt Wiberg.

    Tobacco Reporter profiled Stingfree in its July 2017 issue (see “Patching the Pouch“).

  • FDA Warns Retailers for Illegal Sales

    FDA Warns Retailers for Illegal Sales

    The U.S. Food and Drug Administration issued warning letters to 115 brick-and-mortar retailers for selling unauthorized vaping products. The warning letters cite the sale of disposable e-cigarette products owned by Chinese manufacturers and marketed under popular brand names, including Geek Bar Pulse, Geek Bar Skyview, Geek Bar Platinum, and Elf Bar. 

    The warning letters result from the FDA’s ongoing enforcement efforts, in coordination with state partners, to identify and crack down on the sale of unauthorized e-cigarettes, according to the agency. FDA has contracts with states, territories, or third-party entities to assist with compliance check inspections of retail establishments.  

    Findings from the 2024 National Youth Tobacco Survey indicated that 5.8 percent of current youth e-cigarette users reported using products under the Geek Bar brand. FDA’s review of additional rapid surveillance data and preliminary data from the Population Assessment of Tobacco and Health Study has also identified the brand as popular or youth-appealing. 

    Warning letter recipients are given 15 working days to respond with the steps they will take to correct the violation and to prevent future violations. Failure to promptly correct the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalty. 

    A new tobacco product must have FDA authorization before it can be legally marketed, and generally, products without authorization are at risk of enforcement action. To date, the FDA has authorized 34 e-cigarette products and devices.

  • Turkmenistan Hikes Tobacco Import Tax

    Turkmenistan Hikes Tobacco Import Tax

    Image: Ahmed

    Turkmenistan has increased excise rates on imports of tobacco products to 181.25 percent of the customs value effective Jan. 2025, reports Turkmenportal. The minimum tax rate will be $7.81 per pack.

    Meanwhile, the government increase the excise tax rate on other tobacco and industrial tobacco substitutes from $30.5 per kg to $38.13 per kg.

     In February 2022, Turkmenistan adopted a national program for 2022-2025 aimed at achieving “tobacco-free” status.