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  • New Zealand to Ban Disposables

    New Zealand to Ban Disposables

    Image: slexp880

    New Zealand will ban the sale of disposable e-cigarettes, increase fines for retailers caught selling to those under the age of 18 and better regulate retailers, reports Reuters.

    Following a rollback of the planned generational tobacco ban, the government has stated that it is committed to reducing smoking, though it is taking a different approach, which includes more regulation of vaping.

    “While vaping has contributed to a significant fall in our smoking rates, the rapid rise in youth vaping has been a real concern for parents, teachers and health professionals,” said Casey Costello, associate minister of health.

    “The coalition government is committed to tackling youth vaping and to continue to drive down smoking rates to achieve the smoke-free goal of less than 5 percent of the population smoking daily by 2025,” said Costello.

    The new rules will include higher fines for retailers selling to underage individuals, a review of vape retailer licensing and a ban of all disposable vapes.

  • Similar DNA Changes in Smokers and Vapers

    Similar DNA Changes in Smokers and Vapers

    Image: tonaquatic

    A new study from University College London (UCL) and the University of Innsbruck shows that e-cigarette users with limited smoking history have similar DNA changes to specific cheek cells as smokers, reports Medical Xpress.

    The study was published in Cancer Research. It analyzed epigenetic effects of tobacco and e-cigarettes on DNA methylation in more than 3,500 samples to determine the impact on cells directly exposed to tobacco (e.g., cells in the mouth) and cells that are not directly exposed to tobacco (e.g., blood cells or cervical cells).

    Data showed that epithelial cells in the mouth had substantial epigenomic changes in smokers. Similar epigenetic changes were seen in epithelial cells in the mouths of e-cigarette users who had smoked fewer than 100 tobacco cigarettes in their lifetime.

    “This is the first study to investigate the impact of smoking and vaping on different kinds of cells—rather than just blood—and we’ve also strived to consider the longer term health implications of using e-cigarettes,” said Chiara Herzog, first author of the study. 

    “We cannot say that e-cigarettes cause cancer based on our study, but we do observe e-cigarette users exhibit some similar epigenetic changes in buccal cells as smokers, and these changes are associated with future lung cancer development in smokers,” Herzog said. “Further studies will be required to investigate whether these features could be used to individually predict cancer in smokers and e-cigarette users.”

    “While the scientific consensus is that e-cigarettes are safer than smoking tobacco, we cannot assume they are completely safe to use, and it is important to explore their potential long-term risks and links to cancer,” said Herzog. “We hope this study may help form part of a wider discussion into e-cigarette usage—especially in people who have never previously smoked tobacco.”

    The study also showed that some smoking-related epigenetic changes remained more stable than others after quitting smoking, including smoking-related epigenetic changes in cervical samples.

    “The epigenome allows us, on one side, to look back,” said Martin Widschwendter, senior author of the study. “It tells us about how our body responded to a previous environmental exposure like smoking. Likewise, exploring the epigenome may also enable us to predict future health and disease. Changes that are observed in lung cancer tissue can also be measured in cheek cells from smokers who have not (yet) developed a cancer.

    “Importantly, our research points to the fact that e-cigarette users exhibit the same changes, and these devices might not be as harmless as originally thought. Long-term studies of e-cigarettes are needed. We are grateful for the support the European Commission has provided to obtain these data.”

    In response to the study, the U.K. Vaping Industry Association (UKVIA) released a statement.

    “While the study data—which one leading academic has described as ‘crude’—implies a link to changes in cheek cells, which could potentially cause cancer, the study authors said their findings did not prove that e-cigarettes caused cancer,” the statement read.

    “The study authors said their findings showed that vapes ‘might not be as harmless as originally thought,’ but it is important to make clear that nobody in the vape industry ever said that vaping was harmless. There are risks from vaping, but they are tiny compared to smoking,” the UKVIA said.

    “This latest study,” the UKVIA statement said, “is also questioned by leading experts such as Peter Shields, an emeritus professor of medical oncology at Ohio State University. He states that critical pieces of information are missing and calls the smoking and vaping data that they are working from as ‘crude.’ He points to the fact that there is no biochemical verification that the vapers are actually not also smokers. He concludes that ‘researchers are still a far distance from being able to show causality, and the data looks like vapers are actually more like never smokers—implying their risk of cancer is not increasing by vaping.”

  • Sales Reach $13 Million as Season Starts

    Sales Reach $13 Million as Season Starts

    Photo: Taco Tuinstra

    Tobacco sales at Zimbabwe’s auction and contract floors has reached 1 million kg by day three of the marketing season. Farmers have earned $13 million so far, a 216 percent increase from the $4 million earned in the comparable period last year, according to The Herald.

    Tobacco Industry and Marketing Board (TIMB) statistics show that there has been a 167 percent increase in volume sales by day three at both auction and contract floors, from 1,555,090 kg to 4,148,403 kg.

    The average auction price is $3.15 per kilogram. Contract floors have recorded an average price of $3.11 per kilogram. The overall average price this year is $3.12 per kilogram, an 18 percent increase from the $2.63 per kilogram seen last year.

    This year, there was a 201 percent increase in total bales and a 62 percent decrease in bale rejection.

    The highest price seen on the auction floor was $4.99 per kilogram while the highest price on the contract floor was $6.50 per kilogram. The lowest price on both floors was $0.10 per kilogram.

    “The $4.99 per kilogram price ceiling has not yet been broken, and we have noticed a worrying trend where contract pricing seems not to make use of the prices determined on the auction to inform their pricing,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association (ZTGA). “This discord needs to be addressed by having more tobacco on auction for competition.”

  • New Study on Harm Reduction Public Policy

    New Study on Harm Reduction Public Policy

    Image: alexskopje

    R Street Institute has released a new report, “Progressive Except for Nicotine: A Discussion of States’ Inconsistent Adoption of Harm Reduction Public Policy.”

    The study examined the harm reduction policy landscape across tobacco, opioids and cannabis in all 50 U.S. states. Researchers identified several important harm reduction-related policies that have varying levels of acceptance/implementation across different states or are currently in legislative flux: tobacco: state and municipal restrictions on electronic nicotine-delivery systems, also known as e-cigarettes or vapes; opioids: states’ authorization of syringe services programs, decriminalization of drug checking equipment, and presence of state-imposed restrictions on methadone that go beyond federal regulations; and cannabis: the legal status of medical and recreational adult-use cannabis markets in each state.

    Researchers then used this information to rank states as “restrictive,” “moderate” or “permissive” on harm reduction with regard to each substance. These rankings were quantitatively compared for all states, and states deemed “restrictive” on at least one substance were qualitatively examined. 

    The report found that while some states support one type of harm reduction, those same states may actively oppose another type of harm reduction. The report also showed that the five states most restrictive of reduced-risk nicotine products in tobacco harm reduction are California, Massachusetts, New Jersey, New York and Rhode Island, and these states are relatively “permissive” when it comes to opioid harm reduction and cannabis use.

    The researchers have suggested that lawmakers reflect on the inconsistencies between harm reduction policies across substances and put political motivations aside to support harm reduction across all substances.

  • Baltimore Bans Nicotine at Sports Stadiums

    Baltimore Bans Nicotine at Sports Stadiums

    Credit: Matthew Tighe

    Mayor Brandon Scott of Baltimore, Maryland, signed a bill last week banning all tobacco and nicotine products in city stadiums.

    Orioles and Ravens games were already smoke-free, as required by state law. But now, all tobacco and nicotine products are banned inside the gates.

    Scott made the ban official. The ordinance banning tobacco and nicotine products extends to all stadiums and athletic facilities in Baltimore city – notably, Orioles and Ravens home games.

    Locals and visitors are reacting to the new bill, according to media reports.

    Bill Vickers from Boston supports the ban, emphasizing the importance of a family-friendly environment at the ballpark. “It’s a great idea, probably been a long time coming. It’s just you have families coming to the ballpark,” Vickers said.

    Other residents say they would prefer a compromise. “I can always understand both sides of things. It’d be nice if there was just a designated area,” Kevin Robertson of Baltimore said.

  • Hong Kong Seizes $26.6 Million in Illegal Cigs

    Hong Kong Seizes $26.6 Million in Illegal Cigs

    Credit: Timothy Donahue

    Customs officers in Hong Kong seized illegal cigarettes worth more than HK$208 million ($26.6 million) in the first 15 days after a tobacco tax increase came into force as part of last month’s budget.

    Superintendent Jeff Lau Leung-chi of the Customs Revenue Crimes Investigation Bureau said on Monday that if the tobacco had been legally imported, the contraband products would have generated about HK$147 million in tax.

    Lau attributed the increase in cigarette seizures to enhanced enforcement action at all levels to combat the trade in illegal tobacco products and the operation’s longer duration in the second phase, according to media reports.

    “We also believe that crime syndicates anticipated the possibility of an increase in tobacco tax, so they stockpiled a larger quantity of illicit cigarettes ahead of time to supply the market after the tax hike,” he said.

    The untaxed cigarettes were discovered over the second phase of a citywide operation code-named “Tempest”, which involved the arrest of 776 people between February 29 and March 14.

    During the first round of the operation, which took place between February 19 and 28, Customs detained 538 people and seized HK$62 million worth of illegal tobacco products in 10 days.

  • BAT Moving Listing Would be ‘Distraction’

    BAT Moving Listing Would be ‘Distraction’

    BAT CEO Tadeu Marroco dismissed the idea of moving the company’s listing to New York from London, stating that it “would create a lot of distraction internally,” according to the Financial Times. Marroco also noted that he wasn’t sure “the benefit would be as evident as some suggest.”        

    In 2023, Rajiv Jain, chair and chief investment officer of U.S. investment group GQG Partners, which at its peak owned 4 percent of BAT stock, urged BAT to switch its primary listing to the U.S. Jain argued that Philip Morris International, which GQG Partners also owns a stake in, trades at a much higher earnings multiple.     

    GQG Partners sold out of BAT in July 2023 due to BAT’s refusal to move its listing.

    Marroco said in regards to the possibility of moving the company’s listing, “I don’t think that in this period of time, we should be focused on this.” He noted that he has “many other things” he needs to do and that “There is nothing to suggest that … it’s a no-brainer to go to the U.S.”

    While Marroco acknowledged that London’s capital markets are struggling to attract and retain listings, he noted that there are advantages to staying in the U.K.

    “If you have a shareholding of a U.K. [listed company] and you are located outside, you don’t pay withholding tax on your dividends, which is different from the U.S.,” he said.

    “Hopefully, we can see that in 10 years’ time, we don’t have this type of discussion. Today, there’s a lot of emotion that relates to it because of the frustration of some that are leaving.”

    BAT recently announced a sale of part of its stake in ITC to restart BAT’s share buyback program. “What’s most important for me is that having restarted the buyback, this should be a consistent feature in terms of our capital allocation,” said Marroco.

    “We have a massive business in the U.S. that we can use to sell [new products],” he said. BAT’s U.S. cigarette sales have fallen, driven by consumers switching to cheaper brands and cigarette alternatives such as heated-tobacco products. By 2035, BAT aims to have 50 percent revenue from alternative products.

  • BAT Share Buyback Begins

    BAT Share Buyback Begins

    Image: maurice norbert

    BAT’s program to buyback BAT ordinary shares using proceeds from its sale of shares in ITC Limited begins Monday, March 18, 2024. The final net proceeds received by the BAT Group from the sale were £1.57 billion ($1.99 billion), and the program will buy back £1.60 billion of BAT ordinary shares starting with £700 million in 2024 and the remaining £900 million in 2025. The program will end no later than Dec. 31, 2025.

    The purpose of the program is to reduce the issued share capital of the company. The purchased shares will be canceled. The company has entered into an agreement with UBS AG London Brance to enable the purchase of ordinary shares for the initial stage of the program. UBS will purchase the company’s ordinary shares as principal, and the company will purchase such number of ordinary shares form UBS in accordance with the terms of the engagement.

    The number of ordinary shares permitted to be purchased by the company is 223,590,721 ordinary shares. The program will be carried out on Recognized Investment Exchanges within the U.K. For the avoidance of doubt, no repurchases will be made in respect of the company’s American Depositary Receipts.

  • Flava Pulled From Philippine Shelves

    Flava Pulled From Philippine Shelves

    Flava brand vaping products have been pulled from store shelves in the Philippines amid allegations of illegal marketing to minors and tax evasion, the Department of Trade and Industry has said.

    The DTI’s Fair Trade Enforcement Bureau (FTEB) on March 15 ordered Flava Corporation, Lilac’s Vape Shop, and social media influencer Lilac Sison Tayaban, CEO of Flava, to refrain from manufacturing, importing, selling, packaging and distributing imported Flava vapes, according to media reports.

    Once the Sampaloc, Manila-based business receives the preliminary order issued by DTI-FTEB, all of Flava’s commercial activities must immediately stop.

    Flava was the respondent to formal charges alleging violations of Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, filed before the DTI-FTEB on March 14.

    In turn, the DTI-FTEB gave the preliminary order to confiscate Flava products that violate RA 11900, to prevent the disposition or tampering of evidence and the continuation of the acts being complained of.

    The DTI is the lead implementing and enforcement agency of RA 11900, the landmark law aimed at protecting minors from vaping. The House Ways and Means Committee earlier estimated as much as P728 million ($1.3 million) in foregone tax revenues from the alleged technical smuggling of P1.4 billion worth of illicit Flava devices last year.

    After laboratory testing, The House panel discovered that Flava had not declared the vapes it imported from China. Flava allegedly mislabeled its ingredient as freebase nicotine, which has a lower excise tax than nicotine salt — the nicotine used in Flava products.

    Also, the House committee discovered Flava’s aggressive marketing of its flavored vapes to minors, most especially on social media—a violation of RA 11900. Last week, Bureau of Internal Revenue commissioner Romeo Lumagui Jr. disclosed that the taxman seized 1,029 master boxes of Flava vapes from a warehouse in San Pablo City, Laguna, with tax deficiencies totaling P75.7 million.

    The BIR raid conducted together with the Laguna provincial field unit of the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) also led to the arrest of two individuals manning the warehouse.

    As such, the BIR will file criminal tax evasion charges against Flava.

    “This successful raid of a vape warehouse containing 102,900 bottles of Flava vape products will be one of many. The BIR supports the whole of the government’s approach to eradicating illicit vape products. We have warned you as early as 2022. Our raids are successful. We won the criminal cases. You already have pending warrants of arrest. Register and pay your proper taxes, or suffer the consequences,” Lumagui said.

    Meanwhile, Consumer Protection Group spokesperson, Trade Assistant Secretary Amanda Nograles said they will check the report of the Philippine Drug Enforcement Agency that marijuana-laced electronic cigarettes or vapes are now proliferating in the market.

    “That report alarms us, especially when these will be sold to minors. Since the information was just new, then we will get additional information. But the DTI will continue to confiscate vape products with flavor descriptors and have cartoon characters that are appealing to minors, and products that use influencers,” Nograles said in a radio interview.

    She said if the DTI encountered or confiscated vapes with marijuana oil, then they would refer it to the PDEA.

    On Thursday PDEA operatives seized cannabis oil and ‘kush’, and assorted vaping devices, with an estimated total value of P842,000 in simultaneous raids in Taguig City.

  • U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, according to the Local Government Association (LGA).

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. However, a minority could see the fine as a price worth paying to continue selling the products, it said.

    “We’re delighted that the government is taking decisive action to ban disposable vapes,” Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said, according to media reports. “However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    Firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, the Local Government Association (LGA) has said.

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. A minority could see the fine as a price worth paying to continue to sell the products, it said.

    Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said: “We’re delighted that the government is taking decisive action to ban disposable vapes. However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    According to LGA analysis, councils can impose larger penalties for other offenses, including up to £500 for littering, £500 for excessive noise from licensed premises, £200 for a business failing to put up “no smoking” signs, and up to £150 for unauthorized distribution of free leaflets on public land.

    The LGA, representing councils in England and Wales, calls for the government to amend the tobacco and vaping bill to allow councils to impose more severe fines.