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Category: Top News

  • Nordic Spirit Launches New Nicotine Pouch

    Nordic Spirit Launches New Nicotine Pouch

    Nordic Spirit has launched a spearmint version and an extra-strong nicotine option for its Bergamot Wildberry flavor, according to Talking Retail.

    The extra-strong variant will also be available in the new spearmint flavor. Currently, 70 percent of nicotine pouch sales are made up of strong and extra-strong variants.

    “The Nordic Spirit brand has gone from strength to strength since launching in 2019 with its range of nicotine pouches pivotal in driving category growth,” said Mark McGuiness, head of marketing at JTI U.K. “We strive to innovate and meet evolving customer demand, and the new launches do just that—helping retailers take advantage of the increasing market for stronger variants.”

  • Study: India’s E-cigarette Ban is Working

    Study: India’s E-cigarette Ban is Working

    A recent survey shows that 94 percent of Indian vapers have given up e-cigarettes and other electronic nicotine-delivery systems (ENDS) following their ban in 2019, according to the BangaloreMirror.

    The survey, designed by the Campaign for Tobacco-Free Kids and conducted in collaboration with the National Law School of India University, Bengaluru, was disseminated online and targeted those aged 18 to 34. Most respondents were from Karnataka.

    The survey also showed that over 56 percent of respondents believed there was a health risk in using ENDS products while 24 percent were unaware of any risks.

  • Top Court Reviews Tobacco Ban

    Top Court Reviews Tobacco Ban

    The government wants to overturn a lower court’s verdict that the ban was unconstitutional.

    South Africa’s Supreme Court of Appeal heard an appeal on Thursday arguing that the tobacco ban during the country’s Covid-19 lockdown was justifiable under the constitution, according to the Times Live.

    In December 2020, the Western Cape High Court found that the tobacco ban had breached a number of human rights under the constitution and that the ban was unlawful because it was not “necessary” to prevent escalation or alleviate effects of the disaster (the coronavirus pandemic) as required by the Disaster Management Act.

    The ban has not been in effect for a while, and President Cyril Ramaphosa said that the national state of disaster would soon be lifted as well, according to his state of the nation address. It is not guaranteed that another state of disaster would not be declared due to new and potentially more harmful Covid-19 variants, however. The court decision on the tobacco ban is important, then, because it would set precedent for future states of disaster.

    “In a situation of evolving scientific knowledge, and with infection numbers rising and likely to continue to do so, the government had to take a cautious approach,” said Andrew Breitenbach, counsel for the government, arguing that the court judgment should not stand.

    The goal of the ban was to relieve the strain on the healthcare system, and Breitenbach argued that the science at the time showed that smokers had higher rates of hospitalization and severe illness from Covid-19.  

    Alfred Cockrell, counsel for BAT South Africa, said it that the government needed to show that stopping smoking during lockdown would reverse or lessen the progression of Covid-19, not just that stopping smoking had an immediate “general good” effect.

    “The point is that the dangers from cigarette smoking result from long-term chronic use,” Cockrell said.

    More than 18 months after South Africa lifted its tobacco ban, the country is still coping with elevated levels of illicit cigarette sales.

  • Egypt Increases Prices Of Popular Cigarettes

    Egypt Increases Prices Of Popular Cigarettes

    Photo: Jose

    Eastern Co. of Egypt has increased prices for 10 types of cigarettes, reports Egypt Independent

    The retail price of Cleopatra Box (10 cigarettes) rises to EGP11.50 ($0.73), Cleopatra King Size (20 cigarettes) rises to EGP18.50 and Cleopatra Soft Queen (20 cigarettes) rises to EGP19.

    In January 2018, the Egyptian House of Representatives approved an increase in cigarette prices to finance comprehensive health insurance by EGP0.75 per pack of 20 cigarettes, and an increase of EGP0.25 piasters every three years until the increase reaches EGP1.5 at the end of the period.

    Eastern Co. is the largest producer of tobacco in Egypt. The company was established on July 12, 1920, by a decree from Sultan Ahmed Fouad.

  • Stora Enso Suspends Operations in Russia

    Stora Enso Suspends Operations in Russia

    Photo: Stora Enso

    Stora Enso will stop all production and sales in Russia until further notice due to the ongoing invasion in Ukraine. Stora Enso has three corrugated packaging plants and two wood products sawmills in Russia, employing around 1,100 people. The company will also stop all export and import to and from Russia. A mitigation plan has been activated to secure availability of input materials from other sources.
     
    “The war in Ukraine is unacceptable, and we are fully behind all sanctions. We will now focus all our attention on supporting our customers and the well-being of our employees,” said Annica Bresky, president and CEO of Stora Enso, in a statement.
     
    Stora Enso’s sales in Russia are approximately 3 percent of total group revenues. The impact on Stora Enso’s sales and earnings before interest and taxes is not material.

  • Record Tobacco Income Boosts Vector’s Results

    Record Tobacco Income Boosts Vector’s Results

    Photo: Wirestock

    Vector Group reported consolidated revenues of $1.22 billion in 2021, down 1 percent from the previous year. Reported net income of $219.5 million was up $126.5 million over 2020. Adjusted net income from continuing operations was $174.8 million, up $44.9 million compared to the prior year period. Reported operating income increased $26 million to $320.4 million while tobacco segment operating income was $360.3 million, up 13 percent over 2020.

    For the fourth quarter of 2021, Vector Group reported consolidated revenues of $313.7 million, up 9 percent compared to the prior year period. Reported net income was $45.3 million, up $13.1 million. Adjusted net income from continuing operations totaled $41.4 million, $19.3 million higher than in 2020. Reported operating income of $68.6 million was down $5.5 million compared to the prior year.

    “Vector Group had another outstanding quarter, achieving all-time high annual tobacco segment operating income,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “We are excited by the continued strong performance of our tobacco business, which validates our market strategy and reflects the competitive advantages we have in the highly attractive deep discount segment. With the spin-off of Douglas Elliman complete, we are laser focused on continuing to capitalize on opportunities in the growing deep discount segment while leveraging our value-focused brand portfolio and broad national distribution to meet evolving market demands.”

  • Tobacco Technology Appoints New President

    Tobacco Technology Appoints New President

    Photo: Jacub Jirsak

    Tobacco Technology has appointed David Johnson as president and chief scientific officer of the company and its wholly owned subsidiaries, E-LiquiTech and Emerald Green Technology. He will be replacing Richard Howell, who retired earlier this month after 43 years of service.

    Johnson joined Tobacco Technology as the director of regulatory affairs in 2021. He brings more than 30 years of scientific, regulatory and management experience, including over 20 years in the tobacco industry, to the Tobacco Technology family of companies.

    He received his Ph.D. in chemistry from the University of Mississippi, specializing in physical analytical chemistry. In addition, he completed postdoctoral training at the University of North Carolina in Chapel Hill in the mass spectrometry group of Maurice Bursey.

    Johnson acquired much of his tobacco experience at Swedish Match North America, where he was the director of analytical, and at Turning Point Brands, where he was the senior director of scientific and regulatory affairs. Johnson also has a wealth of sales, marketing and Six Sigma experience from his years working with DuPont.

  • 22nd Century Reports Results

    22nd Century Reports Results

    Photo: MIND AND I

    22nd Century Group reported net sales of $30.9 million for 2021, up 10.1 percent from 2020. The increase was due to an increase in contract manufacturing sales. Gross profit for 2021 was $2.1 million compared to $1.4 million in the prior year. Gross margin in 2021 increased to 6.7 percent from 5.1 percent in the prior year.

    Net sales for the fourth quarter of 2021 were $8 million, an increase of 8.9 percent over the prior year period. The increase was due to an increase in contract manufacturing sales. Gross profit for the fourth quarter of 2021 was $387,000 compared to $588,000 in the prior year period due to the favorable effect of a large customer order that benefitted the previous year’s fourth quarter.

    “The past several months were incredible as 22nd Century transforms from a pure science and contract manufacturing company into a company selling branded VLN cigarettes, licensing valuable biotechnology IP and supplying highly specialized plant lines in large and dynamic global end markets,” said James A. Mish, CEO of 22nd Century Group, in a statement.

    “We secured our highly anticipated FDA MRTP [modified-risk tobacco product] designation on Dec. 23, and immediately moved to launch our VLN pilot program by the end of March. The first VLN cigarettes packaged with the FDA’s added claim of ‘Helps You Smoke Less’ rolled off our manufacturing lines in late January.

    “Additionally, we have finalized our point-of-sale materials to educate adult smokers about how to use VLN to change their relationship with highly addictive nicotine cigarettes, and we have worked alongside Circle K to prepare for our first launch in more than 150 metro Chicago stores before rolling VLN out nationwide. Our mission is to get this product as quickly as possible into the hands of adult smokers, 70 percent of whom want to quit and are looking for new and innovative products to help them smoke less.”

    On Feb. 28, 22nd Century announced its VLN cigarettes would make their international debut in South Korea.

  • FDA Submits Menthol Ban for Review

    FDA Submits Menthol Ban for Review

    Photo: chocolatefather

    The U.S. Food and Drug Administration is a step closer to a complete ban on menthol-flavored cigarettes and cigars.

    The ban is not expected to impact vaping products, although many experts predict a menthol combustible ban could possibly transition some menthol smokers to e-cigarettes. It is predicted to be similar to what happened in the U.K. when it banned menthol cigarettes in 2020.

    Thursday, the agency submitted its proposal to the White House’s Office of Management and Budget (OMB), according to news reports.

    In 2020, the regulatory agency enacted a “flavor ban” on e-cigarettes because they targeted middle and high school students. Now, public health officials argue banning menthol, the last allowable nontobacco flavor in cigarettes, will save lives.

    In its proposal, the FDA provides evidence that menthol tobacco products are heavily marketed to racial minorities. The U.S. Centers for Disease Control and Prevention reports more than 85 percent of menthol smokers are Black, taking a disproportionate toll on their health.

  • 22nd Century to Launch VLN in South Korea

    22nd Century to Launch VLN in South Korea

    Photo: 22nd Century Group

    South Korea will be the first international market to commence sales of 22nd Century’s VLN reduced nicotine content cigarettes, the company announced in a press release.

    “South Korea is an ideal international launch market in many ways, with a high smoking rate among developed countries and a government strongly committed to smoking harm reduction. We expect the first sale of VLN reduced nicotine content cigarettes to our South Korean partner to occur by the end of March,” said 22nd Centur4y’s CEO, James A. Mish.

    “Approximately one in three adult men in South Korea are smokers, and an estimated 6 percent of adult women smoke. The government has worked over the past two decades to promote smoking cessation through a variety of means, including heightened tobacco prices, and remains committed to advancing alternative products to help curb smoking activity in the country. We are excited to make VLN reduced nicotine content products available in South Korea to help break the nicotine addiction cycle and support this important effort.”

    The company will continue its launch process in additional markets in Asia and Europe with limited regulatory barriers while also leveraging VLN’s modified-risk tobacco product (MRTP) authorization in the United States toward seeking approval in additional markets with higher regulatory barriers.

    In addition to its first international launch of VLN reduced nicotine content cigarettes in the more than $800 billion global tobacco market, 22nd Century Group is actively moving forward to launch VLN in the $80 billion U.S. market.

    The U.S. FDA authorized 22nd Century’s VLN reduced nicotine content cigarette products on Dec. 23, 2021. The company is currently executing its 90-day post-authorization plan to launch in its first U.S. pilot market.