Knowledge Action Change (KAC) has released a briefing paper on the rapid fall in cigarette sales in Japan following the introduction of heated-tobacco products (HTP).
Titled “Cigarette Sales Halved: Heated-Tobacco Products and the Japanese Experience,” the paper explores some of the social and cultural factors that have made Japan particularly suited to HTP and provides a case study showcasing the potential of tobacco harm reduction through the adoption of safer nicotine products.
As well as referencing a number of peer-reviewed science papers, the briefing paper, available in 12 languages, also includes some new Global State of Tobacco Harm Reduction research, which compares up-to-date sales figures that emphasize the changing nature of cigarette and HTP consumption.
According to KAC, the success of HTP in Japan offers significant hope of their potential to reduce cigarette sales in other similar countries.
“The speed and scale of the change in Japan shows just how quickly things can improve when those people already consuming nicotine are given access to a safer alternative,” said KAC Director David MacKintosh in a statement.
“This is not the result of a specific government policy or initiative, yet the benefits to individuals and society are significant. There are lessons to be learnt from Japan by all those who wish to see the use of combustible tobacco consigned to the history books. Harm reduction is about giving people the opportunity to improve their own health and the health of those around them. Given the chance, most people will do just that.”
Price hikes and growing demand for cigarette alternatives boosted Imperial Brands’ half-year results.
Adjusted operating profit for the six months that ended March 31 increased 2.8 percent in constant currency to £1.67 billion. Adjusted tobacco and next-generation product (NGP) revenue was £3.64 billion, also up 2.8 percent over the comparable 2023 period.
Sales of Imperial’s NGP brands, which include Pulze heated tobacco and Blu e-cigarettes, grew by 16.8 percent.
After years of slow growth and market share losses, Imperial outlined a turnaround plan in 2021 focusing on its five top markets and beefing up investments in NGPs, which are deemed less harmful to health. That strategy is paying off, according to Imperial Brands CEO Stefan Bomhard.
“Investment in consumer capabilities, more agile ways of working and further progress with our performance culture have made Imperial Brands a stronger business better able to deliver an acceleration in financial delivery,” said Bomhard in a statement. “This is demonstrated in the first half with the strongest organic top-line growth in more than 10 years, amid a challenging external environment.
“In tobacco, stronger brands and improved sales execution have enabled us both to consolidate the market share gains in our priority markets achieved in recent years and to deliver a strong price mix of 8.6 percent.
“In next generation products, we are steadily building scale within our footprint and these efforts have resulted in net revenue growth of 16.8 percent on a constant currency basis. In the past six months, we have launched new products in all categories, including our entry into the U.S. oral nicotine market with the new Zone brand. Our improved innovation capabilities, which now include three ‘Sense Hubs’ in Liverpool, Hamburg and Shenzhen, mean we are well set up to adapt to changing consumer preferences and regulatory requirements.
“Pricing actions in tobacco taken in the first half and good momentum in NGP gives us confidence in our ability to deliver full-year results in line with our guidance.”
The company said its turnaround plan would result in further improvement to adjusted operating profit growth, supporting mid-single-digit percentage constant currency compound annual growth rate over the final two fiscal years of the plan.
The people of Santa Cruz do Sul are resilient and SindiTabaco is confident the region will recover from the recent natural disaster. (Video: Taco Tuinstra)
The tobacco industry is coming together to assist Brazilians in Rio Grande do Sul, which in early May suffered the biggest floods in the state’s history, particularly in the Rio Pardo Valley region.
As one of the world’s leading tobacco growing areas, Rio Grande do Sul plays a key role in global leaf supply (see “The Great Scramble,” Tobacco Reporter, May 2023). To help flood victims, the Interstate Tobacco Industry Union (SindiTabaco) and its member companies have been carrying out various initiatives.
Among other things, local tobacco companies have continued paying salaries to employees unable to come to work as a result of the floods.
The trade group and its members have also been donating basic food items, cleaning supplies, hygiene kits, and furniture, providing personal loans for reconstruction to associates, and offering mental support from psychologists.
In addition, tobacco companies and associations have also donated power generators and water tanks, as well as boats and vehicles for rescuing stranded people and animals.
Many tobacco operations were brought to a standstill by the floods, but gradually resumed operations the next week, according to SindiTabaco. (Photo: Taco Tuinstra)
Iro Schuenke
According to SindiTabaco, most tobacco operations came to a standstill after the floods hit on April 30, and gradually resumed the following week. “This is a crisis of an unprecedented degree, in which basic services are in jeopardy, like the lack of drinkable water and scarce communication,” said SindiTabaco President Iro Schunke in a statement.
Many member companies in the affected regions, he added, had difficulties contacting their employees.
In addition to looking after their employees, the tobacco companies are now working on recovery plans for their contracted farmers. According to Schunke, Brazil’s widely acclaimed integrated production system is now giving contractors a good grasp of the needs of the impacted growers. The high per-kilo earnings from this year’s crop should help farmers in the recovery process.
“The upcoming tobacco crop is in its initial phase and we are going to do a survey to come to grips with the losses that occurred. Just like what happened during the Covid-19 pandemic, we are going to move forward with resilience, joining efforts toward what has to be done,” said Schunke.
Readers wishing to support relief efforts in southern Brazil, can donate to the Rotary Club of Venancio Aires, which is headed by Inacio Leisman of Tabacos Marasca (see chart for bank details).
According to the Ministry of Development, Industry and Foreign Trade, Brazil exported 512 million kg of tobacco with a value of $2.73 billion in 2023.
Greenbutts has successfully completed filter conversion qualification with Aiger Group.
Tadas Lisauskas
“Our consistent innovation and unique intellectual property related to our biodegradable filter technology empower our multinational partners to achieve their plastic reduction objectives without compromising the sensory experience that smokers expect,” said Greenbutts CEO Tadas Lisauskas in a statement.
“Collaborating with Aiger, we envision significant success in the European market, where changing environmental regulations necessitate the adoption of plastic-free alternatives.”
“More than 10 years ago, we recognized Greenbutts’ innovation and creativity. We shared their vision, and since that time, we have developed state-of-the-art machinery for their products,” said Courtland MacDuff, executive board member and director at Aiger Engineering.
“Aiger took steps early on to engineer new machines to produce high-quality filter rods using natural, nonplastic materials. The task was not only to modernize the process but to do it better and differently. Aiger’s Bio-FleX production line hit the targets and stands today as the most advanced and versatile filter maker in this new segment.”
Many bidi rollers in Bangladesh are dissatisfied with their conditions, reports the Daily Sun.
Eighty-four percent of participants in a study conducted by the Development Organization of the Rural Poor (DORP) indicated they want to change employment due to health hazards of the tobacco.
At the same time, 95 percent of the surveyed bidi workers expressed dissatisfaction with their wages while 61 percent complained about the workload.
The report, titled Study Report on Bidi Workers’ Livelihood in Tangail District-2023, was presented by DORP Deputy Executive Director Mohammad Zobair Hasan at the Jatiya Press Club in the Dhaka.
“We explored the common health hazards experienced by the participants and found that the majority of them suffered from cough and sneeze while 17.1 percent suffered from abdominal pain/swelling and chest pain or gas,” Zobair Hasan said.
Despite the reported concerns, 95 percent of survey participants indicated that they incurred no healthcare expenses over the past 12 months.
It is with sadness that we report the passing of Friedrich “Fritz” Bossert, former CEO of Lancaster Leaf Tobacco Co. and retired regional director of Universal Corporation’s Dark Air-Cured Group. He passed away on May 12. Bossert was a legend in the cigar industry.
Bossert spent 22 years at Universal. He started as vice president at Gebrueder Kulenkampff, a German subsidiary, in 2002, and in 2005, he was promoted to the position of senior vice president of International Operations and Sales for Lancaster Leaf. In 2009, Bossert was elected Universal’s regional director of its Dark Air-Cured Group and, at the same time, was elected the CEO of Lancaster Leaf Tobacco Co.
A subsidiary of Universal, Lancaster Leaf specializes in producing dark air-cured tobacco, which is primarily used for making cigars. Bossert was a well-known and popular friend of the cigar industry, and his numerous contributions will always be remembered.
George C. Freeman III, chairman, president, and CEO of Universal, said that Bossert’s expertise and professional approach in the dark air-cured market fostered trusted partnerships with Universal customers, particularly during the cigar industry’s recent growth years.
In a note to Universal’s global operations yesterday, Freeman stated that Bossert was a giant in the dark air-cured industry because he was so passionate, knowledgeable and, above all else, he was a gentleman.
“That is how he approached life as well. Fritz valued loyalty and courtesy and the importance of relationships and friendships. He loved people, so he was just as comfortable attending a black-tie gala as he was standing in the middle of a wrapper field talking to a farmer,” stated Freeman. “I will dearly miss his wisdom, sense of humor, his courteous manner, and his friendship.”
Fritz Bossert
Mark Ryan, president of L.A. Poche Perique Tobacco and a longtime friend of Bossert, said he was devastated by the news of Bossert’s passing.
“Fritz was brilliant, professional, avuncular and a dear friend to many in our industry,” said Ryan. “He was always available to listen to our concerns and provide helpful insights and guidance. Fritz was an exceptional human being, admired by everyone in our industry, and I wish I could be more like [he was].”
During a 2020 trip to Cuba with Tobacco Reporter, Bossert taught several media members the art of rolling cigars by hand. Bossert was also well known for handing out his own unique blend of cigar, affectionately referred to as “Fritz Sticks.”
A global traveler, Bossert was responsible for managing Lancaster Leaf operations in several countries, including Brazil, the Dominican Republic, Ecuador, Indonesia, Nicaragua, Paraguay, the Philippines, and the United States. His insight and impact on the tobacco industry will continue well into the future. He was also a wine aficionado.
In a recent article commemorating his retirement, Drew Estate paid tribute to Bossert’s instrumental role in developing its MUWAT Kentucky Fire Cured line, a testament to his deep understanding of fire-cured tobaccos. Furthermore, Bossert’s expertise was pivotal in sourcing the Connecticut tobaccos that are the backbone of the Liga Privada brand, a testament to his unparalleled knowledge and influence in the industry.
Bossert had a deep understanding of tobacco and was especially experienced in tobacco’s journey from farm to factory. George Cassels-Smith, CEO of Tobacco Technology and a longtime friend of Bossert, praised Bossert’s understanding of the industry and his willingness to share his experiences.
“It is rare that an individual with so much knowledge of tobacco and our industry shares so freely with customers and shares connections to facilitate great products in the marketplace,” said Cassels-Smith. “Fritz was a walking encyclopedia of knowledge, contacts, and know-how, wrapped in a warm-hearted gentleman. His shoes will be hard to fill, and his presence will surely be missed by everyone he touched.
“Fritz was a legend in this industry and an approachable old-soul gentleman through and through. My heart goes out to his wife, Claudia, his daughters, and all of his friends worldwide; he was a huge positive to everyone he met.”
John Verbeten will be the new director of the U.S. Food and Drug Administration Center for Tobacco Products’ Office of Compliance and Enforcement, effective June 16.
Verbeten has more than 20 years of experience leading field operations, compliance and enforcement, and national-level program management. In his latest role within Office of Import Operations, Verbeten served as the principal advisor to the Office of Regulatory Affairs’ (ORA) leadership on import operations and enforcement activities, and oversaw the FDA’s field import operations, which includes a staff of more than 700 people.
He also provided leadership in the development, implementation and evaluation of new laws, regulations and policies related to ORA’s global and national programs and activities.
Most recently, he led the agency’s development of a memorandum of understanding between the FDA and U.S. Postal Service (USPS), which established a framework that provides a basis for the development of bilateral data exchange and provides the FDA access to the USPS advanced electronic data for imported mail shipments.
The tobacco industry is urging Cambodia to crack down on the illicit trade in cigarettes, reports The Khmer Times.
A recent study by Kantar International found that 18.5 of cigarettes on the market failed to display the required tax stamps, causing the government to miss out on up to $10 million in revenues each year.
Vernon Little, president of the Association of Tobacco Industry in Cambodia (ATIC), which represents several local and international tobacco manufacturers, said better tobacco tax stamp compliance would not also boost government income, but also contribute to a level playing field for the industry.
“We request the Royal Government of Cambodia to take more action strongly against those illicit [products],” said Little.
Health activists want Pakistan to increase its Federal Excise Duty (FED) on cigarettes to 70 percent of retail prices, in line with international standards, reports Dawn. Achieving that level requires a rate hike of 37 percent.
According to proponents of the measure, raising taxes would not only reduce the burden on Pakistan’s healthcare system, but also earn the government much-needed revenue. They calculate that a 37 percent FED hike would generate an additional PKR60 billion ($215.7 million) from cigarettes for 2023-2024. Revenue collections from July 2023 to January 2024 reached PKR122 billion, with full year estimates exceeding PKR200 billion.
Backers of the increase reject tobacco industry arguments that tobacco tax hikes fuel illicit trade, suggesting that tobacco firms manipulate their reported production to influence tax policy.
According to activists, some 31.6 million adults currently use tobacco in Pakistan, resulting in more than 160,000 deaths every year, while smoking-related illnesses and deaths cost the country at least 1.4 percent of its GDP annually.
Antismoking groups are also urging the government to embed healthcare cost-recovery in tobacco tax policy through automatic adjustments to excise taxes, ensuring that they cover a certain percentage of the total health costs attributable to smoking.
Ireland will raise the minimum legal age for buying tobacco from 18 to 21 under plans due to be approved by Cabinet on May14, reports The Irish Times.
Minister for Health Stephen Donnelly is also drafting legislation to ban disposable vapes and restrict point-of sale-promotion of e-cigarettes.
The legislation will reportedly include a grace period allowing those aged 18-21 to keep buying tobacco products until a yet-to-be-named date.
Health officials are hoping that the age hike could also limit the social sources of cigarettes for children and young people as they may be less likely to be in social groups with people who can legally purchase cigarettes.
Seventy-three percent of adults and 71 per cent of those aged 18-24 support raising the legal age to purchase tobacco to 21, according to a survey by the Irish Heart Foundation.
In December, Ireland banned the sale of vapes under-18s.
From this September, there will also be curbs on advertising on public transport and near schools as well as a ban on sales at events attended by children. A ban on the sale of tobacco and vape products from vending machines is also to be enacted shortly, while a new licensing regime will mean all shops selling these products will have to pay an annual license.
The tobacco industry is urging Cambodia to crack down on the illicit trade in cigarettes, reports 
