Top News - Tobacco Reporter

Tobacco Commission Malawi Returns to Profit

The Tobacco Commission of Malawi posted a profit of MKW325 million ($404,374) in 2021, allowing the parastatal to recover from previous financial losses, reports The Nyasa Times.

In 2019–2020, the Tobacco Commission posted revenue of MKW3.6 billion but recorded a loss of MKW81 million.

Tobacco Commission spokesperson Telephorus Chigwenembe attributed the improvement to reforms implemented last year. “The improved performance has come about because of sound financial management measures that the institution put in place to avoid the loss that was recorded in 2020,” he told The Nyasa Times.

Between March 2021 and February 2022, the Tobacco Commission said it strengthened its regulatory framework, enhanced tobacco production and marketing integrity, improved stakeholder understanding of the commission’s mandate and roles, improved financial sustainability and bolstered “institutional capacity.”

The Tobacco Commission generates its revenues from statutory levies.

February 22, 2022

Smuggling Ring in Spain and Portugal Disrupted

Spanish and Portuguese law enforcement agencies have dismantled a criminal network involved in cross-border tobacco smuggling, according to Europol.

On Feb. 16, more than 100 officers simultaneously raided addresses on either side of the border, detaining eight suspects.

The officers seized 2 tons of cut tobacco and tobacco strips, more than 10,000 counterfeit cigarettes and tobacco cutting and drying equipment. They also recovered €37,800 ($42,778.46) in cash.

Property searches were carried out in the province of Sevilla (Spain) and in the cities of Coimbra, Lisbon, Leiria and Aveiro (Portugal).

The criminals are suspected of having illegally imported from Spain to Portugal large quantities of leaf tobacco and strips, destined to produce counterfeit cigarettes. This criminal network had tobacco storage and production facilities scattered across both countries.

Law enforcement believes these criminals have smuggled over 7 tons of tobacco products from Spain to Portugal in 2021 alone.

The revenue loss generated by this illegal activity is estimated at over €163,000 in Portugal.

February 21, 2022

Study: Nicotine Mandate Could Reduce Smoking

Requiring cigarette manufacturers to significantly reduce the nicotine content of their products could dramatically reduce smoking rates in New Zealand, reports Stuff, citing a new study published in The New Zealand Medical Journal.

In December, New Zealand unveiled an ambitious tobacco control plan that in addition to gradually raising the smoking age until it covers the entire population, includes a reduced nicotine mandate. New Zealand aims to reduce its smoking levels across to below 5 percent of the population by 2025.

Mandating about 95 percent less nicotine in cigarettes could have a “plausible chance” of achieving the Government’s Smokefree 2025 goals, wrote Professor Nick Wilson and colleagues from the Department of Public Health at the University of Otago, Wellington.

Wilson was relaxed about the anticipated uptick in vaping and illicit trade following such a mandate. Vaping is “substantially less harmful” than smoking and New Zealand’s remote location would offer some protection against cigarette smuggling, he noted.

Assuming a full ban on nicotine was implemented on March 1, 2023, Wilson and his colleagues predicted the smoking initiation among 18–24-year-olds would reduce by 75 percent due to the nonaddictive nature of the denicotinised tobacco. That would translate into an annual reduction of about 6,500 smokers.

Among older established smokers, the researchers assume that 33 percent would quit each year in 2023, 2024 and 2025.

Such a “relatively high rate” of quitting could be sustained because low nicotine tobacco is not addictive and the “growing denormalisation of smoking,” according to the researchers.

February 21, 2022

ITC Bars Unauthorized Juul-Compatible Pods

The U.S. International Trade Commission (ITC) has issued a general exclusion order barring the importation of any unauthorized cartridges compatible with the Juul System that infringe Juul Labs patented product designs, including compatible flavored pods and refillable pods.

This ruling follows a filing by Juul Labs submitted to the ITC on July 10, 2020, that sought a general exclusion order directed at all importers of unauthorized cartridges that copy Juul Labs’ patented pod designs without authorization.

“Today’s ITC ruling represents a major victory against manufacturers of illicit vapor products who seek to bypass regulations and undermine efforts to create a more responsible marketplace for the category,” said Wayne Sobon, vice president, intellectual property at Juul Labs, in a statement.

“In addition to targeting the importation of all infringing products, regardless of the brand, this sweeping action will provide the additional public benefit of helping rid the market of unauthorized Juul-compatible products that can be modified by the user, such as empty and refillable pods.”

February 21, 2022

New Tobacco Restrictions in Mexico

Mexican President Andrés Manuel López Obrador has published a new tobacco control law that includes bans on tobacco advertising, promotion and sponsorship, alongside restrictions on public smoking.

Under the new law, the use of e-cigarettes and heated tobacco products will also be prohibited in indoor public places.

According to the Campaign for Tobacco-Free Kids (CTFK), about 30 percent of youth are exposed to secondhand smoke in hospitality venues in Mexico.

“Mexico’s comprehensive law is a victory not only for public health, but for the government champions and advocates in Mexico who worked tirelessly to ensure this life-saving measure was enacted,” wrote CFTK Director of Latin American Programs Patricia Sosa in a statement. “It is critical that the Mexican government ensure swift implementation of the new law so that all Mexicans can truly be protected from the deadly tactics of Big Tobacco companies.

February 21, 2022

Taat to Develop HNB Product with Shunho

Taat Global Alternatives has signed a letter of intent with a U.S. subsidiary of Shanghai Shunho New Materials Technology Co. to undertake development work for a white-labelled heat-not-burn device as well as heatable sticks containing Taat’s proprietary tobacco-free and nicotine-free Beyond Tobacco material in all three flavors (original, smooth, and menthol).

As heat-not-burn has proven to retain users exceptionally well compared to other tobacco cigarette alternatives, Taat has identified the opportunity to build upon its existing international market share in the tobacco industry by planning an expansion into the heat-not-burn category with a tobacco-free and nicotine-free offering that would be among the first of its kind in the United States.

In addition to procuring heatable Taat sticks made using the company’s Beyond Tobacco material, Shunho’s U.S. subsidiary is to supply a proprietary heat-not-burn device on a “white-label” basis, which is to be commercialized in the United States under the Taat brand name. Uniquely, this device will offer reverse compatibility with heated tobacco sticks offered by the company’s competitors, as well as the Taat original, smooth, and menthol heatable sticks.

Headquartered in Shanghai, Shunho is a renowned tobacco ancillary service company that has worked closely with international tobacco companies. Under Shunho, there is a portfolio of firms that are currently developing next-generation electronic cigarette and vaporizing products. Taat will be the first foreign third-party with whom a Shunho subsidiary has partnered for white-label production of heat-not-burn products. Additionally, distribution services will be provided for the Taat heat-not-burn offerings through various in-house and third-party e-commerce channels in the United States.

“The reason we chose to pursue the heat-not-burn segment is because it is the most ‘sticky’ option out of all commercially available alternatives to cigarettes,” said Taat CEO Setti Coscarella in a statement. “The tobacco industry has invested heavily in cultivating a user base for heat-not-burn to the point that it may even replace major brands of tobacco cigarettes altogether in certain markets.

“We are excited to be leveraging innovative technologies to create a unique nicotine-free and tobacco-free experience using heat-not-burn for consumers who currently use and prefer this method. Because the Taat heat-not-burn device will work with Taat sticks as well as certain competitors’ heatable tobacco sticks, we believe this strategy authentically embodies our values as a company by providing consumers the choice and flexibility they deserve to have.”

February 21, 2022

EU Parliament Endorses Harm Reduction

The EU Parliament has adopted, by a margin of 652 votes to 15, a report on Cancer prevention and Treatment that recognizes the potential contribution of vapor products to smoking cessation. The report notes that “electronic cigarettes could allow some smokers to progressively quit smoking.”

In adopting the report, the EU Parliament has become the world’s first elected chamber to endorse tobacco harm reduction, according to the Independent European Vape Association (IEVA).

“This is a landmark declaration by the European Parliament, which should go a long way to reassuring smokers of the health benefits that a switch to vaping can bring,” said IEVA President Dustin Dahlmann in a statement. “We now encourage the other EU institutions—and in particular, the European Commission—to take this on board and ensure that policy follows science, not the other way around.”

In addition to measures to reduce cancer incidence, the committee’s report places a special focus on the serious health effects of smoking.

The report also stresses the need for further research on vaping to be viewed in relative terms, given that tobacco smoking kills and vaping does not.

The final text of the report also includes a mention of further assessment of flavors “particularly attractive to minors and non-smokers” and a possible ban on them in the context of the review of the Tobacco Products Directive.

The IEVA says its crucial to avoid a flavor ban because the variety of flavors is one of the top reasons for adult smokers to switch to e-cigarettes and for vapers not to return to smoking.

“Research into the impact of flavor bans shows that many vapers return to smoking as a result [of a ban],” said Dahlmann. “This must be prevented. We agree that steps must be taken to curtail inappropriate marketing, while recognizing the crucial role flavors play in helping smokers quit.”

February 18, 2022

USTC Plans Bankruptcy Exit

U.S. Tobacco Cooperative (USTC) has begun planning an exit from Chapter 11 bankruptcy later this summer. The cooperative originally filed for protection in July 2021 to meet contractual obligations to its member growers while the company faced uncertainty presented by an ongoing class-action lawsuit.

“On February 2, after 17 years of litigation, we were able to reach economic terms of a settlement with the Lewis Class,” said USTC CEO Oscar J. House. “As we await final approval from the court this summer, we are beginning to prepare our exit from bankruptcy and continue providing the exceptional service and quality products our organization is known for across the globe.”

USTC originally filed for protection in federal bankruptcy court to satisfy obligations to its 550-plus member-growers, 200-plus employees, suppliers and customers. The settlement and plan of reorganization will allow the cooperative to honor its commitments worldwide and emerge from bankruptcy well positioned to serve its member-growers. Details of the agreement will be provided in the ordinary course of obtaining formal court approval of the settlement and USTC’s plan of reorganization.

“USTC is healthy and set for a sustainable, successful future,” continued House. “Throughout the bankruptcy process we have fulfilled all obligations to all stakeholders: our customers, grower-members, vendors and employees. Going forward we will continue to do so, stronger than ever.”

February 17, 2022

Voedsel To Set Up Leaf-Processing Plant

Voedsel Tobacco International will set up a $6 million leaf-processing plant in Rusape, Zimbabwe, this year, reports Bulls n Bears.

“We have purchased the material to set up a tobacco-processing plant for the value addition of tobacco,” said Voedsel’s commercial director, Tennyson Hwandi.

“This process involves beneficiating the tobacco from its state into a semi-finished product. It also means that there is going to be more earnings for the farmers as we grow the value chain. As an indigenous company, we are proud to have achieved this as this creates new jobs.”

Hwandi said the plant is expected to start operations this year.

Voedsel’s investment is in line with the government’s Tobacco Transformation Plan, which aims to grow the Zimbabwean tobacco industry to $5 billion by 2023 by increasing the level of value-added tobacco to 30 percent from the current 2 percent.

February 17, 2022

Trade Group: Flavor Ban Study is Misleading

The conclusion from a recent study that flavor ban-induced sales declines also reduce youth vaping is unwarranted, according to the Canadian Vaping Association (CVA).

A recent CDC Foundation analysis examining the change in vape product sales in Massachusetts, New York, Rhode Island and Washington after flavor bans found that statewide restrictions on nontobacco-flavored sales were associated with reductions of 25.01 percent to 31.26 percent in total unit sales compared with total sales in states without restrictions.

However, the “hasty” conclusion that the reduction in total sales has also reduced youth vaping prevalence does not hold up, according to the CVA, because the authors were unable to assess the age of purchasers.

According to the CVA, the most common way for youth to access vaping products is through social sourcing. “Even if the age of the purchasers could be verified, a reduction in youth vaping could only be determined through additional studies,” the CVA wrote in press note.

“The problem with taking a micro view to regulation and forming policy based on individual studies is [that] the bigger picture is neglected,” said Darryl Tempest, government relations council to the CVA Board. “If we take this study at face value and assume the conclusion is accurate and less youth are vaping, on the surface it seems like this type of regulation is logical. Yet, we know from reviewing the full scope of evidence that flavor restrictions result in smoking-related illness and death.”

February 17, 2022

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