Category: Top News

  • First Vapor Industry Trade Show of 2022 Opens in Vegas

    First Vapor Industry Trade Show of 2022 Opens in Vegas

    The first industry trade show of the year opened its doors yesterday in Las Vegas. The Tobacco Plus Expo (TPE) runs from Jan. 26-28 and brings together representatives from several segments of the vapor, tobacco and alternative product industries. The number of exhibitors this year increased significantly compared to last year’s show, which was held in May after being postponed for four months, rising to 425 exhibitors compared to 350 in 2021.

    Attendance for the first day of the show was an estimated 4,000 visitors, according to a TPE representative. That’s a nearly 30 percent increase from opening day for last year’s event which drew an estimated 2,500 to 3,000 visitors. The show didn’t “feel” like there were that many attendees, however, it’s such a large floorplan it would be impossible to guess an estimate.

    There was a noticeable reduction in the number of nicotine vaping companies showing on the floor. The impact of premarket tobacco product applications (PMTAs) and PACT Act regulation was evident. There were only an estimated 12–14 e-liquid vendors, including Coastal Clouds, BLVK E-liquid, Bantam, Pacha Mama and Ripe Vapes. There were eight to 10 hardware manufacturers, including Mi-One Brands, Myle, First Union and Vaporesso, and most of the manufacturers produced their own brands.

    There were also a few e-liquid brands selling products that have already received a marketing denial order (MDO) from the FDA. One company told Vapor Voice that there really isn’t much enforcement and getting warning letters is the only thing that has happened to them.

    There were, however, a very large number of disposable synthetic nicotine brands. One new brand at the show, Hook’d – with its tagline “one puff and you’re Hook’d” – seemed to take taunting the U.S. Food and Drug Administration to another level according to Kim, a show attendee who asked not to use her last name. “Why would you put a brand out there like that,” she said. “It’s just disappointing.” A person working the Hook’d booth, when asked why the Hook’d name, told Vapor Voice the name was “just catchy.”

    Next year’s TPE is scheduled to take place Feb. 22-24, 2023. While most likely not an issue for vapor and alternative industry representatives, the TPE’s cigar segment may find itself split in several directions. Not only is that week traditionally when Procigar, the Dominican Republic’s cigar festival, takes place, it also may be competing against the Festival del Habano—Cuba’s cigar festival— that typically takes place in late February (traditionally the week after Procigar).

    In 2019, both festivals took place during the same week and were scheduled to take place the same week in 2022 before the Habanos festival was cancelled due to Covid concerns. Neither Procigar nor the Festival del Habano has announced dates for 2023.

  • Altria Group Reports Full-Year Results

    Altria Group Reports Full-Year Results

    Photo: Casimiro

    Altria Group earned net revenues of $26.01 billion in 2021, down 0.5 percent from its 2020 net revenues. Net revenues net of excise taxes was up 1.3 percent to $21.11 billion in 2021. For the fourth quarter of 2021, Altria Group reported net revenues of $6.26 billion, down 0.8 percent over those reported in the comparable 2020 period. Revenues net of excise taxes were up 0.6 percent to $5.09 billion for the fourth quarter.

    “Altria delivered outstanding results in 2021 across our businesses, including strong financial performance, progress toward our vision and advancements in our ESG efforts,” said Altria CEO Billy Gifford in a statement.

    “We returned more than $8.1 billion in cash to shareholders in 2021 through dividends and share repurchases. This total represents the third-largest single-year cash return in Altria’s history and the largest annual return since 2002.

    “Our plans for the year ahead include a continuation of our strategy to balance earnings growth and shareholder returns with investments toward our vision. We expect to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93, representing a growth rate of 4 percent to 7 percent from an adjusted diluted EPS base of $4.61 in 2021.”

    Altria’s heated-tobacco business suffered a setback when the U.S. International Trade Commission imposed an importation ban on the IQOS device, Marlboro HeatSticks and infringing components following an intellectual property dispute with Reynolds American Inc. As a result, the IQOS system is no longer available for sale in the U.S.

    Atria says it remains focused on returning IQOS to the U.S. market.

  • PMI Included in 2022 Gender Equality Index

    PMI Included in 2022 Gender Equality Index

    Photo: Formatoriginal

    Philip Morris International has been included in the 2022 Bloomberg Gender Equality Index (GEI) for the second year running. This is in recognition of the progress PMI has made in increasing gender equality globally. Currently, 39.2 percent of management positions are held by women, an increase of more than 10 percent since 2014 and still growing.

    “I am delighted that PMI has made the GEI for the second year running, particularly given that the threshold for inclusion within this index has grown since last year,” said Silke Muenster, chief diversity officer at PMI, in a statement. “While we still have a long way to go, I am very proud of the progress we have made to date, and I am confident about achieving more in the future.”

    As part of PMI’s commitment to gender parity, a global company-wide target was set to improve gender balance to at least 40 percent female representation in management by the end of 2022 and measuring and reporting progress against it.

    Other achievements and initiatives to further gender equality by PMI have included: becoming the first EQUAL-SALARY globally certified company; addressing gender bias in talent assessments; introducing global inclusive parental leave guidelines; celebrating top female talent; and launching a women in leadership program.

    The GEI is a modified market capitalization-weighted index that aims to track the performance of public companies committed to transparency in gender data reporting. It measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and pro-women brand.

    “We are proud to recognize PMI and the other 417 companies included in the 2022 GEI for their commitment to transparency and setting a new standard in gender-related data reporting,” said Peter T. Grauer, chairman of Bloomberg and founding chairman of the U.S. 30 Percent Club. “Even though the threshold for inclusion in the GEI has risen, the member list continues to grow. This is a testament that more companies are working to improve upon their gender-related metrics, fostering more opportunity for diverse talent to succeed in their organizations.”

    All companies included in this year’s index scored at or above a global threshold established by Bloomberg to reflect disclosure and the achievement or adoption of best-in-class statistics and policies.

  • China Probes Huabao Founder

    China Probes Huabao Founder

    Photo: Andrey Popov

    Chinese regulators have announced an investigation into Chu Lam You, the majority shareholder in Huabao International Holdings, China’s largest e-liquid, tobacco flavoring and fragrance company.

    One of China’s richest self-made women, Chu is being investigated for unspecified “suspected disciplinary violations,” according to a Hong Kong stock exchange filing. The company said in a statement that it was informed of the investigation by its subsidiary Huabao Flavours and Fragrances. “Up to the date of this announcement, the company has not been provided with any details of the nature of the suspected violations of Ms. Chu that [are] currently being investigated. The business operation of the group remains normal,” the company stated.

    Huabao added that the subsidiary received a case filing notice from the Leiyang City Supervisory Committee indicating that the probe was being carried out by the Chinese Communist Party and the local government, according to the Financial Times.

    Launched in 1996, Huabao produces flavors and fragrances used by tobacco manufacturers, including for the e-cigarette or vaping market, as well as food companies.

    Like many high-profile Chinese businesspeople, Chu has also served on various industry and government advisory committees. The probe into Chu comes as China’s long-running anti-corruption campaign gathers momentum as Xi seeks to secure a historic third term.

  • Snus Use at Record High in Norway

    Snus Use at Record High in Norway

    Photo: uskarp2

    Daily snus use in Norway has nearly doubled in a decade, reports Norway Today, citing figures released by Statistics Norway (SSB). Nearly 15 percent of the population consumed snus daily in 2021 compared with 8 percent 10 years ago.

    The proportion of daily snus users is at the highest level ever, jumping to 15 percent in 2021, according to SSB consultant Sindre Mikael Haugen.

    Figures show that 21 percent of men use snus on a daily basis while the figure was 8 percent for women.

    Meanwhile, the number of people who smoke daily decreased slightly. Some 8 percent of 16-year-olds to 74-year-olds stated that they light up daily compared to 9 percent in 2020.

    Women (9 percent) were more likely to smoke daily than men (6 percent). While Baby Boomers (55-year-olds to 64-year-olds) smoke most, this group also experienced the greatest decline in smoking rates recently. Only 14 percent of this age group smoke compared to 17 percent in 2020.

  • Henrik Brandt Tapped as Next STG Chairman

    Henrik Brandt Tapped as Next STG Chairman

    Photo: jirsak

    Scandinavian Tobacco Group’s (STG) board of directors intends to elect Henrik Brandt as chairman following Nigel Northridge’s decision to retire at the company’s next annual general meeting.

    Northridge has informed the board of directors that he will not stand for reelection at the annual general meeting on March 31, 2022.

    Northridge joined the board of directors in 2016 and has been chairman of the board of directors since 2017.

    Subject to the elections at the annual general meeting in March 2022, the board of directors will elect Brandt as the new chairman of the board of directors. Brandt joined the board in 2017 as vice chairman.

    “Nigel has been the chairman during a period of significant change and growth for Scandinavian Tobacco Group,” said Brandt in a statement. “During his tenure, the company has developed from being newly listed to a stronger company with a clear strategy in place for the future. Nigel deserves a lot of credit for having led this development. I also wish to thank the board of directors for their confidence in me as they express their intention to elect me as the future chairman.”

    “It has always been my desire to retire in my mid-60s in order to spend more time with my wife and grandchildren,” said Northridge. “I have been honored to chair the board of directors of Scandinavian Tobacco Group for the past five years, and I have throughout enjoyed the cooperation with the board of directors and the strong leadership of the company. I am confident that Scandinavian Tobacco Group is well-positioned for continued growth and development. I wish my successor, my colleagues on the board of directors, the management and all employees of the company the very best for the future.”

    Brandt has extensive executive and nonexecutive experience in leading international, publicly listed and private equity businesses. His career has included executive positions at the House of Prince, STG and Royal Unibrew.

    In addition to being vice chairman of the board of directors of STG, Brandt is chairman of the board of Toms Gruppen, Fritz Hansen, Intervare and Danish Bake Holding. He is also a member of the board of directors of Ferd Holding, the Gerda and Victor B. Strands Foundation, Gerda and Victor B. Strand Holding and Social Grill.

  • Bangladesh Investigates BAT’s Dominance

    Bangladesh Investigates BAT’s Dominance

    Photo: ronstik

    Japan Tobacco International has accused BAT Bangladesh of anti-competitive practices, reports The Daily Star. The Bangladesh Competition Commission (BCC) is investigating the complaint.

    United Dhaka Tobacco Company (UDTCL) alleges in the complaint that BATB abuses its dominant position. JTI filed the case in March 2021, three years after entering Bangladesh’s tobacco market by acquiring UDTCL for $1.47 billion in 2018 from Akij Group.

    When JTI entered Bangladesh, UDTCL had a 19.8 percent share in the cigarette market, which has now dropped to 12.6 percent. JTI alleges this is due to BATB’s anti-competitive practices.

    BATB is the leading cigarette seller in the country followed by JTI and Abul Khair Tobacco.

    BATB had a more than 95 percent share in the premium and “high” segment of the market, according to a 2019 study. Its share in medium and low segments was 65 percent and 58 percent, respectively.

    JTI alleges that BATB operates a program with its retailers to prevent competition in the market and stop rivals from gaining more market access. Under the alleged program, if a BATB partner retailer stocks or sells United Dhaka Tobacco products, BATB or its representatives penalize or deduct loyalty points from the retailers or threaten to stop supplying products to the retailers.

    “BATB runs the program directly and/or indirectly through its representative and/or distributor,” said JTI, adding that it earlier requested BATB to put an end to all programs and acts that restrict competition.

    BATB denied the allegations, according to the JTI complaint.

    Md Mofizul Islam, the chairperson of the BCC, says the commission is investigating the case. “We will try to give a verdict as soon as possible after holding a hearing.”

  • Thailand Explores E-Cigarette Legalization

    Thailand Explores E-Cigarette Legalization

    Photo: kikujungboy

    The Digital Economy and Society (DES) Ministry set up a working group to see if electronic cigarettes can be legalized as an alternative for smokers, reports The Nation.

    Asa Salikupt, from the End Cigarette Smoke Thailand (ECST) network, said the network supports DES Minister Chaiwut Thanakamanusorn’s plan to legalize e-cigarettes and hopes the working group will be transparent, listen to public opinions and allow e-cigarette users to provide information.

    “We believe the legalization of e-cigarettes will help Thailand achieve the goal of reducing cigarette smokers and protecting nonsmokers from the danger of secondhand smoke,” Salikupt said.

    The Excise Department can introduce an e-cigarette tax once e-cigarettes are legalized.

    Maris Karanyawat, also from the ECST, said Britain, New Zealand and the Philippines are likely to promote the use of e-cigarettes to help reduce the consumption of harmful substances and help those who cannot quit smoking cold turkey.

    “More than 70 countries have legalized e-cigarettes as it can reduce the number of smokers,” Karanyawat added.

    By banning e-cigarettes, the government is losing tax revenue, people are losing access to safer alternatives and the Tobacco Authority of Thailand is losing a chance to make money, according to Taopiphop Limjittrakorn, Move Forward’s Bangkok MP.

  • James Mish Appointed to 22nd Century Board

    James Mish Appointed to 22nd Century Board

    Photo: Bill Gallery

    22nd Century Group has appointed James A. Mish to its board of directors.

    “The board of directors is very pleased to appoint Jim to the board, recognizing his exceptional leadership in developing and executing the business strategy leading to the commercial launches of our modified-risk tobacco products as well as our hemp/cannabis lines,” said Nora B. Sullivan, chairperson of the board of directors, in a statement.

    “Bringing him onto the board further enhances our direct scientific, manufacturing and operational experience in these critically important end markets during a transformative time for our company. His contributions in the board room will also enhance the ongoing development of our strategies and ensure alignment and support for the execution of the strategic initiatives of the company.”

    Mish has served as 22nd Century Group’s CEO since June 2020. Trained as a chemist, he brings a detailed understanding of molecular, organic and formulation sciences to the board—particularly in botanical products and consumer product innovation. He also brings deep experience navigating the regulatory matters related to product approvals and clinical trials, particularly with the U.S. Food and Drug Administration, European Medicines Agency and European Food Safety Authority.

    Prior to joining 22nd Century, Mish led the private equity carve out of Noramco from Johnson & Johnson/Janssen Pharmaceuticals and the subsequent spinoff of Purisys from Noramco. Mish served as president and CEO of Purisys, leading its pharmaceutically derived cannabinoid API, ingredients and solutions business, including full-scale commercial production of cannabinoid APIs for various market segments, including pharmaceuticals, medical OTC and consumer packaged goods.

    Mish began his career at the multinational pharmaceutical firm Pfizer in research and development before holding positions of increasing responsibility at several companies.

  • Alarm About Ecuador’s Traceability Approach

    Alarm About Ecuador’s Traceability Approach

    Photo: ITSA

    The International Tax Stamp Association (ITSA) has raised concerns over Ecuador’s decision to allow tobacco and alcoholic beverage manufacturers to hire a provider of their choice to implement the marking and fiscal traceability system required on excise products.

    According to the ITSA, this development sets an alarming precedent and could open the “flood gate” to taxpayers across the globe using traceability systems that are in their own self-interest, leading to a significant drop in the capacity of authorities to collect tax revenue.

    Last year, Ecuador’s Internal Revenue Service (SRI) published resolutions allowing taxpayers to use any provider for traceability systems in a move that the ITSA says is a fresh blow to the country’s SIMAR traceability system. This has been in place since 2017 to regulate and gather excise on beer, alcoholic beverages and tobacco products and has been instrumental in securing more than $100 million in additional tax revenues, according to the trade group.

    The ITSA has already flagged its concerns with the general director of the SRI, reiterating the position that marking and fiscal traceability solutions independent of controlling industry interests are far more effective in securing supply chains and excise. According to the ITSA, these technologies generate independent and precise information to facilitate more effective tax administration through better control of tax declarations and enforcement of taxpayer obligations.

    Ecuador’s move heralds a potential conflict of interest between the provider and taxpayer because authorities cannot independently verify production and import levels without controlling the track-and-trace provider. It also sees noncompliance with the World Health Organization’s Framework Convention on Tobacco Control, which Ecuador has signed up to.

    “We are deeply concerned that Ecuador’s decision could set an unhealthy precedent for the whole industry, both within the region and globally, which could have a serious impact on the wider tax stamp and traceability industry,” said ITSA President Juan Carlos Yanez in a press note.

    “We urge Ecuador’s government, in conjunction with experts, to review its decision about resolutions 19 and 48 and look at fiscal marking and traceability continuity through a new transparent international public bidding process. In this way, the SRI will be able to significantly increase revenue collection via modern and reliable tax payment methods.”