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  • Pyxus Appoints Chief Legal Officer

    Pyxus Appoints Chief Legal Officer

    Photo: RerF

    Pyxus International has appointed David Singer as senior vice president, chief legal officer and secretary. Singer will report to Pyxus President and CEO Pieter Sikkel and join the company’s executive management team.

    Singer, who served on Pyxus’ legal team from August 2018 to May 2022, rejoins the company with nearly 20 years of experience, most recently serving as chief administrative officer and general counsel for Kymera International, a global specialty materials company. His previous roles include senior in-house counsel positions and experience as a litigation, corporate and regulatory attorney.

    “We are pleased to welcome David back to Pyxus in this new capacity,” said Sikkel in a statement. “Given our diverse global footprint and the regulatory complexities of our operations, David’s legal expertise, strategic insight and deep understanding of our business are invaluable. His leadership will help us uphold a culture of responsibility and compliance as we pursue our strategic goals and drive stakeholder value.”

    Singer succeeds Will O’Quinn, who has been senior vice president, chief legal officer and secretary since 2011. O’Quinn will remain a key member of the company’s leadership team, assuming the position of senior vice president of special projects, and will continue reporting to Sikkel.

    “We thank Will for his contributions to grow the company’s legal function to what it is today and appreciate his enthusiasm to leverage his legal expertise and company-specific business acumen to deliver success in his new role while positioning Pyxus for the future,” stated Sikkel.

  • Seed Sales Surge

    Seed Sales Surge

    Photo: Taco Tuinstra

    Tobacco growers in Zimbabwe have bought more than 1,000 kg of seed to date, reflecting a significant increase over the 831 kg sold at the same time last year, reports the Sunday Mail.

    The seed purchased is enough to cover 201,036 hectares, according to the Kutsaga Tobacco Research Board.

    Tafadzwa Chimuti, spokesperson for the Association of Tobacco Growers, said the upcoming farming season could set new records in terms of acreage, quality and output.

    “This could be a record-breaking year, driven by last season’s favorable prices and the lack of alternative crops offering better returns,” he was quoted as saying.

    The most recent harvest was negatively impacted by drought related to the El Nino weather phenomenon.

    The upcoming growing season, by contrast, will be influenced by the La Nina weather phenomenon, which is expected to bring increased rainfall.

  • RLX Revenue Jumps 66 Percent

    RLX Revenue Jumps 66 Percent

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB627.2 million ($86.3 million) in the second quarter of 2024, up 66 percent from the comparable 2023 quarter. U.S. GAAP net income was RMB134.9 million, down from RMB204.7 million in the same period of 2023. Non-GAAP soared to RMB213.1 million from RMB86.2 million. Gross profit was RMB157.9 million compared with RMB98.5 million in the comparable 2023 period.

    “We delivered a strong second-quarter performance as revenue continued to increase sequentially, driven by our international business expansion,” said RLX chairperson and CEO Ying (Kate) Wang in a statement.  

    “Our deep exploration of overseas markets and regulations has provided us with valuable insights into the global e-vapor landscape, enabling us to create effective, targeted regional strategies. This year, global regulations are rapidly evolving, with more regulators recognizing e-vapor products as harm reduction tools for adult smokers. Leveraging our broad expertise in regulatory compliance, we are well prepared to navigate these changes and ensure a seamless transition for our users and partners.”

    Chief Financial Officer Chao Lu said the considerable year-on-year increase in net revenues reflected the company’s ability to capture growth opportunities in international markets. “While our gross margin declined slightly due to an unfavorable shift in our revenue mix, disciplined cost management bolstered our non-GAAP operating profit margins,” he said.

    “Looking ahead, we are confident of driving continued improvement in both our top and bottom lines, fueled by ongoing revenue growth from international markets and our relentless focus on operational efficiency. As always, our priority is to deliver sustainable and profitable returns to our shareholders.”

  • Thailand: Home Vaping is Domestic Violence

    Thailand: Home Vaping is Domestic Violence

    Image: Zerophoto

    Exposure to secondhand vapor from vaping at home could be considered a violation of Thailand’s child protection laws, according to child health and rights experts who are calling for more awareness of the dangers of vaping around children, reports The Pattaya Mail.

    Under national laws, vaping around children could be considered “domestic violence,” according to Thai authorities. They are calling for stricter enforcement.

    The Royal College of Pediatricians of Thailand wants stronger government measures to restrict the import and sale of e-cigarettes and increase educational campaigns about the risks of nicotine.

  • U.S. Court Reverses ‘Elf’ Trademark Suit

    U.S. Court Reverses ‘Elf’ Trademark Suit

    Image: Olivier Le Moal

    A ban on a Chinese company selling “Elfbar” vapes can’t stand because a district court failed to analyze whether the rightsholder’s use of “Elf” on an illegal product negated its trademark rights, the Federal Circuit court stated.

    “Elfbar” seller Shenzhen Weiboli Technology Co. Ltd. argued the “unlawful use doctrine” precluded a preliminary injunction as plaintiff VPR Brands LP failed to clear its “new tobacco product” with the government as required under federal law, according to Bloomberg.

    The U.S. Court of Appeals stated in its opinion that the district court wrongly dismissed the defense without considering the propriety of the doctrine, a proper standard or Weiboli’s evidence.

    The Federal Circuit ruled that the district judge who ordered the injunction “misread” precedent and relied on a “deficient” legal analysis.

    A U.S. federal judge on Feb. 23 ordered Shenzhen Weiboli Technology to stop marketing its Elfbar e-cigarettes in the U.S., finding that VPR Brands, which makes and sells Elf brand vapes, is likely to succeed on its claims that the Elfbar vapes infringe its trademark.

    According to U.S. District Judge Aileen M. Cannon, VPR has shown there is a likelihood of confusion and the company stands to suffer harm if its Chinese competitor is allowed to keep selling the Elfbar vapes.

    In November, VPR asked for an injunction blocking Shenzhen Weiboli from continuing to use the Elfbar mark, arguing the alleged infringement is costing VPR about $100 million because of the effect on future sales.

    VPR claims Shenzhen Weiboli is not only infringing VPR’s Elf trademark but also its patent for its e-cigarette device.

  • Zig-Zag Launches New Hemp Wrap Flavors

    Zig-Zag Launches New Hemp Wrap Flavors

    Credit: Zig-Zag

    Zig-Zag rolling papers announced the expansion of its hemp wrap line, featuring 100 percent tobacco-free hemp wraps in four new flavors: Sour Squeeze, Georgia Peach, Summer Slice, and Mellow Haze.

    The wraps are designed to enhance the smoking experience with their smooth, slow-burning properties and exceptional draw, according to a release.

    Each pack of Zig-Zag Hemp Wraps includes two premium wraps and a convenient packing straw, ensuring an “effortless and enjoyable rolling experience.

    The new hemp wraps are exclusively available in 25-pack cartons online for $24.75 and in 2 packs at retail across the country.

    “Our new hemp wraps are crafted to deliver a superior smoking experience without the use of tobacco,” said Stacey Neuhaus at Zig-Zag. “We are excited to introduce these unique flavors to our lineup, offering our customers more options to enjoy their smoking rituals.”

  • Agencies Want Closer Tracking of Imports

    Agencies Want Closer Tracking of Imports

    The U.S. Food and Drug Administration and the Department of the Treasury have announced a proposed rule that would require an importer to submit the FDA-issued Submission Tracking Number (STN) of electronic nicotine delivery system (ENDS) products into the electronic imports system operated by U.S. Customs and Border Protection.

    The new requirement will help streamline the process of reviewing the admissibility of ENDS products into the United States, according to the FDA’s website.

    After an applicant submits a marketing application for a new tobacco product, FDA assigns a unique identifier called an STN. Under the proposed rule, if finalized, any ENDS product, including e-cigarettes, for which the STN is not submitted may be denied entry into the U.S.

    An FDA-issued STN is one data element that is important to FDA’s admissibility review and determination, which also includes review of other information about the product as well as possible sampling and examination of the product, according to the agency.

    “Beginning tomorrow, the docket for the proposed rule, titled ‘Submission of Food and Drug Administration Import Data in the Automated Commercial Environment for Certain Tobacco Products,’ will be open for public comment through October 15, 2024.

    Visit the rulemaking docket at regulations.gov to learn more and comment on the proposed rule.”Beginning tomorrow, the docket for the proposed rule … will be open for public comment through October 15, 2024.

    Visit the rulemaking docket at regulations.gov to learn more and comment on the proposed rule.

  • Virginia Commission Mulls Grant Requests

    Virginia Commission Mulls Grant Requests

    Photo: Sarah Vogelsong | Virginia Mercury

    Virginia’s Tobacco Region Revitalization Commission has $12 million to spend on energy projects as part of a legislative mandate to revitalize the economies of two regions that are no longer receiving economic benefits from the tobacco industry, reports Virginia Mercury.

    The Energy Ingenuity Committee, at the commission’s last meeting, discussed applications it received for two rounds of the funds that opened this year. A third round of funds is expected to open following the commission’s next meeting scheduled for September.

    “We rolled it out earlier this year,” said Jerry Silva, director of regional energy development and innovation for the commission. “We really did not know what the application level would be.”

    The Tobacco Region Revitalization Commission was formed in 1999 with 28 legislative and citizen members representing Southside and Southwest Virginia. The commission allocates funds from the 1998 Master Settlement Agreement, which was the beginning of the demise of the tobacco industry’s footprint in the two regions.  

    The Energy Ingenuity Fund was recently created by the commission to help increase economic activity surrounding energy development projects. The fund allocated $6 million to each of the two regions and solicited energy development projects.

    To apply for the grants, applicants must be a government entity or nonprofit, have one-for-one matching funds and identify the number of jobs that could be created by the project. Private companies can apply for the grants as long as they partner with a locality to create economic incentives.

    There is a pre-application phase where applicants present ideas to Silva on what the funds could go toward before staff determine what needs more information and what can be submitted as a full application. Silva received 17 pre-applications in round one, with three moving forward to a full vote in May. Round two saw 11 pre-applications, with four expected to move to a vote in September.

    “These are projects that we’re trying to help bridge opportunities that would normally not be opportunities unless we helped them,” Silva said. “We’re trying to make sure we’re the best stewards of the commission’s money and dollars. We want to fund viable projects.”

  • Tanzania Tobacco Exports Hit $438 Million

    Tanzania Tobacco Exports Hit $438 Million

    Image: Tobacco Reporter archive

    Tanzania’s tobacco export value has hit $438.5 million, more than double the previous year, according to data from the Tanzania Revenue Authority (TRA) and Bank of Tanzania (BoT), reports The Guardian.

    The government’s target was $400 million.

    Tobacco exports have now surpassed coffee and cashews as the leading traditional export earning commercial crop. Tobacco is currently produced under contract.

    The value increase is a result of a crop production increase to 122 million kg as well as an increase in commodity price in the world market.

    Tanzania is now the second largest producer of tobacco in Africa following Zimbabwe.

    For the 2024/2025 season, Tanzania aims to produce 200,000 tons of tobacco, and for the 2025/2026 season, the country aims to produce 300,000 tons.

    The goal is to increase export earnings to between $600 million and $700 million annually, according to Hussein Bashe, the minister of agriculture.

    According to Bashe, more than 50 percent of tobacco was bought and sold abroad by local companies, marking a first for the country.

    Statista projections show Tanzania’s tobacco products market generating $644.9 million in revenue in 2024.

  • Brazilian Tobacco Suitable to Ship to China

    Brazilian Tobacco Suitable to Ship to China

    Image: SindiTabaco

    On Aug. 9, the Interstate Tobacco Industry Union (SindiTabaco) hosted a meeting to formalize the closure of the tobacco pre-inspection procedure for the 2023/2024 crop year, one of the requirements of the bilateral trade protocol between Brazil and China. The meeting was held in hybrid format, with the virtual presence of the technicians from the General Administration of Customs China (GACC) and the representative of the Ministry of Agriculture, Livestock and Food Supply (MAPA) and of the National Organization for Brazilian Phytosanitary Protection (ONPF), Pedro Carneiro Abreu.

    Other authorities from Brazil and China attended the event as well.

    “This is a primordial moment for compliance with the protocol. The samples were collected in a very effective manner, and it is with great satisfaction that I inform you that no pests were detected in the collected samples. This once again corroborates the quality of the Brazilian tobacco. China is one of our largest importers of tobacco, and this partnership plays a fundamental role for the continuity of the businesses between the two countries. We are sure that we will continue making strides in this relation,” commented Abreu from MAPA Brasilia.

    “Our participation consists in representing this commitment, which is also shared by minister Carlos Favaro, besides acknowledging this activity as relevant for the entire country. In our understanding, this expresses our responsibility with regard to the Chinese inspection organs,” said Jose Cleber de Souza, superintendent at MAPA RS.

    The MAPA was in charge of collecting the processed tobacco samples and sending them to the Central Analytical Laboratory of the University of Santa Cruz do Sul (UNISC) for laboratory tests that confirm the phytosanitary status of the product prior to shipment. Roque Danieli, tax auditor and head of MAPA’s Plant Health and Inputs Inspection Service in RS, presented details about the pre-inspection activities.

    “During these 23 days in which we worked jointly with the GACC representatives, in virtual format, it was possible to attest to the quality of the 2023/2024 crop and demonstrate that, at field level, the 2024/[20]25 crop is now under cultivation with all the necessary cares in compliance with the requisites set forth on the protocol. The integrated production system gets the credit for the fact that tobacco is the commercial crop that uses the least amount of pesticides at field level, a result of the constant work of the farm extension agents. We hope that the presentation of the works is cause for satisfaction, and next week, we shall send the final report to Brasilia to be forwarded to the GACC,” Danieli said.

    Zhang Nan Zhengrong, Leader of the China Leaf Company Delegation, presented the pre-inspection report to the attendees of the meeting jointly with the technician responsible for the Central Analytical Laboratory of UNISC, professor Adriana Dupont Schneider. She gave details of the analyses.

    “This year, we analyzed a total of 54 lots with samples collected in eight companies. The laboratory activities took 24 days, and they certified the phytosanitary safety with regard to the nine quarantine pests set forth in the agreement, of which, six are types of insects, two weeds and the fungus known as blue mold. All the results were negative for the pests included in China-Brazil trade protocol,” said Schneider.

    “Tobacco is an agricultural crop that suffers harsh criticism but has been vigorously defended by the MAPA,” said SindiTabaco President Iro Schuenke. “This has a lot to do with the social and economic importance of the crop for our country, especially for the South Region. China is our second-largest importer, coming only after Belgium, and every year purchases big amounts of our tobacco. And this is the moment for a special mention of the farmers that cultivate tobacco in Brazil who, along with the farm extension agents, have performed all the necessary works for our compliance with the necessary requisites that have kept Brazil as top leaf exporter over the past 30 years.”