Top News - Tobacco Reporter

Guns N’ Roses Guitarist Lauds Snus

Popular Guns N’ Roses guitarist Slash recently described snus as the “the best discovery in the world” when discussing his experience quitting combustible cigarettes.

The Nordic rock station Rockklassiker interviewed Slash last month, and the musician responded to questions from fans, one of which was from Bengt Wiberg, founder of EUforsnus and creator of Sting Free AB and the sting free snus pouch.

Wiberg asked Slash via social media, “Hi Slash, I think it is great that you quit smoking with the help of Swedish snus and love it! Do you support an end to the European Union snus ban, and do you support EUforsnus?”

“I used to (use snus),” Slash replied. “I did it for years and years and years, and I finally quit a few years ago, but when I first quit smoking, which was in 2009, pretty soon after that I discovered snus, and it was like the best discovery in the world. My God, it’s the greatest! So I did it from probably 2009 until 2015 or something like that. I used to have General snus shipped in from Sweden.”

Slash speaks further in the interview about his experience switching from combustible cigarettes to Swedish snus and eventually quitting nicotine completely in 2015. He visited Swedish Match’s flagship store in Stockholm while in town for a concert that year, where he stated that he received an “informative background on snus and how it’s made,” according to Snusforumet.

Snus is currently banned in the EU with the exception of Sweden. Sweden has a 5 percent rate of daily smokers (close to the World Health Organization’s smoke-free goal), attributing the low number to the use of snus and tobacco-free modern oral nicotine pouches, such as Velo, Zyn and Loop.

Slash did not specifically say whether he supports lifting the EU ban on snus, but Wiberg feels confident that Slash’s sentiments on snus speak for themselves.

February 4, 2022

Universal Corp. Reports ‘Solid’ Results

Universal Corp. reported net income of $60.8 million for the nine months ended Dec. 31, 2021, compared with $48 million for the nine months ended Dec. 31, 2020.

Excluding restructuring and impairment costs and certain other non-recurring items, net income increased by $4.5 million. Operating income increased by $18.1 million to $103.2 million. Adjusted operating income was $116.5 million, compared to adjusted operating income of $107.6 million for the comparable period in 2020.

Net income for the quarter ended Dec. 31, 2021, was $34.9 million, compared with $33.3 million for the quarter ended Dec. 31, 2020.

Excluding restructuring and impairment costs and certain other non-recurring items, net income decreased by $9.7 million. Operating income increased by $2.6 million to $62.8 million. Adjusted operating income was $74.9 million, compared to adjusted operating income of $85.2 million for comparable 2020 quarter.

“Our operations produced solid results in the nine months ended Dec. 31, 2021,” said Universal Corp. President and CEO George C. Freeman III in a statement. “We are especially pleased by the strong results from our Ingredients Operations segment. That segment is developing nicely and was bolstered by our acquisition of Shank’s Extracts Inc. on Oct. 4, 2021. Shank’s adds valuable capabilities to the segment, including flavors and extracts, custom packaging, bottling, and product development.

“We continued to experience the impact of tobacco shipment timing on our results in the nine months and quarter ended Dec. 31, 2021.

“Tobacco shipments through the nine months ended Dec. 31, 2021, were lower, compared to the same period in fiscal year 2021, in part due to elevated tobacco shipments in the third quarter of fiscal year 2021 related to earlier customer mandated shipment timing.

“Logistical challenges due to continued limitations in worldwide shipping availability stemming from the ongoing Covid-19 pandemic also slowed tobacco shipments in the nine months ended Dec. 31, 2021. However, despite the shipment timing variations and logistical challenges, we believe that our tobacco business remains robust with strong customer demand, and our uncommitted tobacco inventory levels remain well within our target range.”

February 3, 2022

Philippines Losing Billions to Illicit Trade

The Philippine government has lost nearly PHP3 billion ($588.17 million) in tax revenues since 2019 due to smuggling or illegal entry of cigarettes into the country, reports Philstar.

The Bureau of Customs (BOC) has intercepted 127,675 master cases of illicit cigarettes since the Tobacco Tax Law was approved in 2019, according to BOC Deputy Commissioner Teddy Raval.

The estimated value of the seized cigarettes reached PHP9.73 billion, more than half of which was accounted for in 2020 at PHP5.77 billion. The government forfeited PHP2.9 billion in excise revenues between 2019 and January 2022 due to smuggling of cigarettes.

“They took advantage of the mobility restrictions, including Customs restrictions, but you caught them,” said Albay Representative Joey Salceda in a House hearing, referring to smugglers attempts to take advantage of Covid-19 restrictions.

February 3, 2022

Court Stays Bidi Vapor Marketing Denial Order

The U.S. Court of Appeals for the Eleventh Circuit has stayed the marketing denial order (MDO) issued by the U.S. Food and Drug Administration to Bidi Vapor in September 2021.

The Feb. 1, 2022, ruling allows Bidi Vapor and Kaival Brands to market and sell all of its Bidi Stick electronic nicotine-delivery systems (ENDS), including its tobacco, menthol and flavored products, while Bidi Vapor continues with its merits lawsuit compelling the FDA to place Bidi Vapor’s premarket tobacco product application (PMTA) for the flavored ENDS back under scientific review.

With the judicial stay decision going in favor of Bidi Vapor, the company expects many distribution partners to reestablish their previous sales volumes, with potentially new distribution chains added as well.

“We expect this judicial stay will result in a rebounding of Bidi Stick sales,” said Niraj Patel, president and CEO of both Kaival Brands and Bidi Vapor, in a statement. “Many wholesale and retail partners had discontinued or slowed purchases of the Bidi Stick until we heard back from the courts on the likelihood of our merits case succeeding. This is what our wholesale and retail partners have been waiting for.”

“We believe that Bidi Vapor has developed substantial, robust and reliable scientific evidence through, among other things, surveys, behavioral studies and clinical trials establishing support that the product is appropriate for the protection of the public health,” Patel said. “Following on FDA’s initial administrative stay of the MDO, we believe that this recent judicial stay is a good indication that the court finds some merit in Bidi Vapor’s arguments and puts Bidi Vapor’s PMTA one step closer to being properly and fully evaluated by FDA. We are extremely pleased with the court’s decision on this judicial stay order and continue to expect to be successful on the merits case as well.”

“The company believes that this decision signals a new milestone in the path toward providing adult smokers 21 and older with a viable alternative to combustible cigarettes. Distributors, wholesalers, retailers and adult consumers are all anxious to see positive outcomes not just for Bidi Vapor, but for the vaping industry as a whole. We believe in science-based regulation of ENDS and hope the courts will require FDA to adhere to the law as it reviews Bidi Vapor’s PMTAs,” Patel said.

February 3, 2022

Jacinta Carter to Lead HR at Swisher

Swisher has hired Jacinta Carter as executive vice president, human resources, people and culture effective Jan. 31. In this new role, Carter will lead all aspects of Swisher’s human resources operations, with a priority focus on organizational alignment, building strong pipelines for future hiring needs, promoting inclusion and opportunity in the workplace, and designing and evaluating career paths to meet the company’s business growth goals.

Carter will have a vital role in shaping the organization and in transforming the culture necessary to achieve Swisher’s long-term vision, and to empower employees in an inclusive culture of growth and opportunity.

“Jacinta is the right leader to help us continue to build an engaged, inclusive, and high-performing culture, which is vital for our business to thrive in 2022 and beyond,” said Swisher President Neil Kiely in a statement. “Her background and skills align with our guiding principles and business transformation goals. We are excited to have her join our team.”

Most recently, Carter served as senior vice president, human resources for Atrium Hospitality, where she created a highly sustainable and employee-centric organization and as a key member of the executive leadership team, grew the company from a small start-up into an industry leader. Before Atrium, she was vice president, corporate human resources and corporate communications at Graphic Packaging International, where she was responsible for strategic planning, communications, succession planning and employee learning.

“Joining Swisher represents a wonderful opportunity to build on what is already a positive, engaging and thriving environment,” said Carter. “I especially appreciate the strong intrapreneurial culture of growth and opportunity at Swisher, and look forward to forging new partnerships and creating opportunities in further developing existing talent and attracting new talent.”

February 1, 2022

FDA Webinar on Pending Product Standards

The U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) will hold a live webinar, titled “FDA’s Rulemaking Process and Upcoming Tobacco Product Standards,” on Feb. 10 from 2 p.m. to 3 p.m. Eastern Time.

The webinar will address the FDA’s planned tobacco product standards to prohibit menthol as a characterizing flavor in cigarettes and to prohibit characterizing nontobacco flavors in cigars; the FDA’s rulemaking process and how stakeholders can submit comments on proposed rules; and available cessation resources and tools.

The webinar will feature a presentation from the FDA’s Office of Minority Health and Health Equity, the CTP’s Office of Health Communication and Education, and the CTP’s Office of Regulations. There will also be a question-and-answer session.

The FDA will respond only to questions submitted by Feb. 4. To submit a question, please register for the webinar and complete the appropriate field on the registration form.

The FDA stresses this webinar is not intended to communicate contents of the proposed rules or details about the timeline for their release.

The webinar is live and free of charge, but prior registration is required by Feb. 9.

February 1, 2022

Israel: Knesset Finalizes Vapor Tax

The finance committee of Israel’s Knesset has approved a slightly modified version of the tax on vaping hardware and e-liquid that was imposed last November, reports Vaping360.

Although the committee reportedly eliminated a separate tax on disposable products, Israel will still have the highest vape tax in the world. Effective immediately, all vaping products will be subject to a tax equaling 270 percent of the wholesale cost, plus NIS15.6 ($4.94) per milliliter of e-liquid.

Both the finance and health ministries aimed to tax vaping products at the same rate as cigarettes. Maintaining that vaping is just as dangerous as smoking, the health ministry initially sought an even higher tax. According to Israel Hayom, Finance Committee Chairman Alex Kushnir “reduced the conversion formula by 30 percent compared to what the Ministry of Health wanted.”

February 1, 2022

Halo Exempted From Vape Mail Ban

The U.S. Postal Service (USPS) has granted Pure Labs permission to ship its Halo brand of vaping products to compliant businesses through the brand’s Master Distributors, Syndicate Global Distribution and Halo Wholesale Direct.

The approval constitutes a regulatory exception to the mailing restrictions described in the Prevent All Cigarette Trafficking (PACT) Act.

The original PACT Act was amended by Congress on Dec. 27, 2020, to incorporate e-cigarettes and vaping products.

“This is a huge win for Halo and for all of our retail partners,” said Kevin Dietz, director of Halo brand sales, in a statement. “Halo’s tobacco and menthol vape products are in demand by adult consumers throughout the country, and we are excited to have USPS solidify the supply chain. Halo has been here from the start and has numerous ENDS products in the final stage required for FDA authorization, furthering Halo’s commitment to remain America’s No. 1 tobacco-flavored e-liquid brand.”

In December, Turning Point Brands received a USPS exemption to ship vapor products to age-restricted vape shops across the United States through VaporBeast and other websites.

January 31, 2022

Publishing Ban for Industry-Owned Firms

A group of international respiratory societies has banned researchers associated with tobacco companies from publishing papers in their journals following Philip Morris International’s acquisition of the U.K.-based pharmaceutical firm Vectura, reports Nature. The measure comes on top of the groups’ decade-long publishing ban on researchers directly funded by tobacco companies.

In a joint statement, the groups describe PMI’s purchase of Vectura as “highly unethical and inappropriate.”

Scientists at Vectura produce drugs that treat asthma and chronic obstructive pulmonary disease, including some smoking-related respiratory illnesses. “That is the ultimate conflict of interest,” said Gregory Downey, a pulmonologist at the University of Colorado Denver and president-elect of the American Thoracic Society, which co-signed the statement.

“The issue is that ‘Big Tobacco’ could use, and will use, this technology not only to potentially enhance delivery of tobacco-containing substances and nicotine devices but to addict more people.”

Moira Gilchrist, vice president of strategic and scientific communications at PMI in Lausanne, Switzerland, says the idea that the company would use Vectura’s technology in this way is “false and without basis.”

“We openly welcome and encourage legitimate critique and debate about our business transformation, but when this morphs into actively ostracizing scientists and attempting to prevent the prescribing of proven medicines for patients, we should pause and think of the implications,” Gilchrist adds.

Signatories of the statement include The European Respiratory Society, International Union Against Tuberculosis and Lung Diseases, Asian Pacific Society of Respirology, Asociacion Latino Americana De Torax, and the Global Initiative for Asthma.

January 31, 2022

Korea: E-Cigs Gain as Combustibles Stagnate

Sales of cigarettes in South Korea were flat from 2020 to 2021 but demand for electronic cigarettes rose amid the protracted pandemic, reports the Yonhap News Agency, citing data from the finance ministry.

South Korean smokers purchased 3.59 billion 20-cigarette packs in 2021, similar to the number logged the previous year, according to the Ministry of Economy and Finance.

Sales of traditional cigarettes fell 2 percent on-year to 3.15 billion packs last year while those of heat-not-burn tobacco products rose 17.1 percent to 440 million packs.

Compared with 2014, however, cigarette sales declined 17.7 percent last year—a development the government attributed to rising prices and anti-smoking campaigns.

In January 2015, South Korea increased cigarette prices by 80 percent to KRW4,500 ($3.72). The next year, the government required tobacco companies to print graphic images depicting the harmful effects of smoking on the upper part of cigarette packs.

As of 2020, the smoking rate among Korean men aged 19 or older dropped to a record low of 34 percent, down 1.7 percentage points from a year earlier, according to the health ministry.

January 31, 2022

Category: Top News