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  • New Zealand: PMI Tax Incentive Extended Through 2027

    New Zealand: PMI Tax Incentive Extended Through 2027

    New Zealand’s tax incentive for Heated Tobacco Products, initially introduced in mid-2024 as a one-year pilot, has been extended for two additional years, with the formal review now moved to July 2027. The excise tax was halved in a bid to encourage smokers to switch from combustible cigarettes to less harmful alternatives.

    The initial trial failed to generate viable data: health ministry briefings confirmed that Philip Morris did not pass cost savings to consumers in the critical early phase, and IQOS devices were removed from shelves for approximately five months due to non‑compliance with battery-removability regulations. Officials described any evaluation at that point as “meaningless,” given that reduced priced HTPs were unavailable for the majority of the trial period.

    Associate Health Minister Casey Costello justified the extension by citing her own “independent advice,” later revealed to consist of five articles—many outdated or about different products—that offered only marginal support for HTP-friendly tax policy. Treasury officials warned that Philip Morris, as the sole importer, would reap the bulk of the estimated NZ$200–300 million cost over the extended term.

    Opposition health advocates suggest the extension favors multinational manufacturers—particularly Philip Morris, which dominates New Zealand’s HTP market—and question whether it undermines broader tobacco control efforts. Government officials maintain that lifting the removable battery requirement for IQOS was a necessary compliance fix and that further data is essential to assess whether price reductions have prompted meaningful user transitions away from conventional cigarettes.

    Cabinet and Costello’s office emphasized the need for more robust market data before concluding the HTP pilot. The extended evaluation, now slated for 2027, will not only assess smoker uptake but also unintended demographic use—particularly young people—and any substitution away from vaping or cigarettes. Simultaneously, documents released from JUUL litigation revealed lobbying initiatives targeting NZ First, alleging PMI had pitched draft regulations to align with its interests. While party leaders deny wrongdoing, critics highlight the decision as symptomatic of “highly industry-friendly” policymaking.

  • Malawi’s Tobacco Sales Surge to $441M

    Malawi’s Tobacco Sales Surge to $441M

  • Minnesota Mandates “Mental Health Warning” Labels on Social Platforms

    Minnesota Mandates “Mental Health Warning” Labels on Social Platforms

    Minnesota lawmakers have enacted what’s believed to be the nation’s first statutory requirement for social media platforms to display a conspicuous mental health warning at every login. Under HF 1289, effective July 1, 2026, platforms must show a pop-up label warning of risks such as anxiety, depression, addiction and cyberbullying, and must include crisis hotline information like the 988 Lifeline. The label stays onscreen until the user either acknowledges it or exits the app; it may not be bypassed or hidden within fine print. Health commissioners must issue implementation guidelines by March 1, 2026.

    Supporters argue the policy fills a regulatory gap in public health communications, drawing parallels to tobacco warning labels. Critics warn it may raise free-speech concerns and pose enforcement challenges, especially given the global footprint of leading social media platforms.

  • Monaco Expands “Zero Cigarette Butt” Campaign

    Monaco Expands “Zero Cigarette Butt” Campaign

    In its 15th year, Monaco’s “Zero Cigarette Butt” campaign has taken a creative turn with the introduction of limited-edition pocket ashtrays designed by local artist Mr One Teas. Launched by Deputy Mayor Marjorie Crovetto and Estelle Antognelli of the Directorate of Tourism and Conventions (DTC), the initiative blends civic engagement with sustainability messaging, reinforcing Monaco’s positioning as a clean and environmentally responsible destination.

    The artist’s design now serves as the campaign’s official visual identity, with ashtrays distributed at tourist information points, public institutions, and the SMEG/SMA store. Ten new MégotBox collection terminals have also been installed in key public areas, resulting in the recovery of over 80,000 cigarette butts this year—equivalent to protecting more than 35 million liters of water from contamination.

  • KT&G Stock Hits Record High

    KT&G Stock Hits Record High

    KT&G has reached a historic stock valuation milestone, climbing over 50% this year to peak at ₩144,000 ($104) per share on July 14, fueled by its aggressive global expansion, strategic share buybacks, and investor-friendly dividend policies. The tobacco and e-cigarette giant’s ascent aligns with new economic policies under President Lee Jae Myung, which have improved market sentiment and promoted private-sector investment.

    The company’s shareholder return program has been a major draw, boasting a dividend payout ratio exceeding 50%, which is well above industry norms, and a recent ₩360 billion buyback of 2.5% of its outstanding shares. A second round of buybacks is planned for later this year. Analysts cite this approach as a stabilizing and confidence-building move, especially in contrast to earlier volatility during the pandemic-driven investment surge of 2021.

    KT&G is also poised to benefit from South Korea’s ₩13 trillion in consumer stimulus coupons, which are usable at convenience stores—a key sales channel for its e-cigarette brands. KB Securities revised its domestic e-cigarette growth forecast sharply upward from –6.6% to +6%, citing the likely consumption boost from the government program.

    On the global front, KT&G continues to ramp up international output. Overseas operating profit soared by 312% in Q1 alone, supported by recent facility expansions in Kazakhstan and Turkey.

  • Pakistan Tobacco Company Expects $150M Export Windfall

    Pakistan Tobacco Company Expects $150M Export Windfall

    Pakistan Tobacco Company (PTC) is projecting over $150 million in tobacco product exports for the 2025–26 financial year, as the country’s tobacco crop yields a significant surplus. With national tobacco production estimated at 140 million kilograms — well above the total industry demand of 81.5 million kg — the company says it is positioned to capitalize on international markets, while reinforcing its domestic supply chain through robust farmer engagement.

    PTC’s Head of Leaf, Imaduddin, emphasized the company’s integrated farmer model, which includes guaranteed procurement, financial support exceeding Rs1 billion, and agronomic training for over 10,000 contracted farmers. With the help of nearly 150 field technicians, PTC provides end-to-end support to ensure consistent quality and sustainability in its leaf sourcing operations.  Imaduddin also clarified that the federal excise duty, set at Rs390 per kilogram, is absorbed entirely by manufacturers and does not impact grower incomes—an important distinction as fiscal pressures on the industry mount.

  • Indonesian Academic Calls for Annual 25% Minimum Tax Increase

    Indonesian Academic Calls for Annual 25% Minimum Tax Increase

    A leading academic voice from the University of Indonesia’s Center for Social Security Studies (PKJS UI) is calling for a 25% annual increase in Indonesia’s minimum tobacco tax, citing affordability and rising youth smoking rates as critical public health concerns. Speaking at a media workshop on tobacco control, PKJS UI Head Aryana Satrya argued that Indonesia’s cigarette prices — despite reaching Rp 49,900 ($3 USD) — remain among the lowest globally, enabling widespread access, especially among minors.

    Citing internal research, Satrya claimed that raising prices to Rp 60,000–70,000 could compel 60–70% of smokers to quit. The call for tax hikes is tied to a broader push for stricter allocation of tobacco tax revenue toward cessation services, public health education, enforcement of smoke-free areas, and anti-illicit trade initiatives. PKJS UI recommends mandating that at least 40% of shared tobacco tax revenues (DBH CHT) and 25% of regional cigarette taxes (PRD) directly fund tobacco control programs.

    Meanwhile, government officials reaffirmed that Rp 6.39 trillion in DBH CHT will be distributed across 27 provinces in 2025, with health receiving 40% of that allocation. However, pressure is mounting to direct a larger and more consistent share toward demand-reduction strategies.

    Data from the 2023 Indonesian Health Survey shows that the country now has 63.1 million active smokers, including a troubling 7.4% of youth aged 10–18. Even more alarming is the emergence of smoking behavior among children aged as young as 4, with 2.6% of child smokers falling into the 4–9 age group.

  • Philip Morris International Reports Record Q2 Earnings

    Philip Morris International Reports Record Q2 Earnings

    Philip Morris International Inc. reported record second-quarter results today (July 22) driven by strong growth in its smoke-free portfolio and resilient performance in combustibles. Net revenues reached an all-time high, with smoke-free products—including IQOS, ZYN, and VEEV—accounting for 41% of total sales. Shipments of smoke-free products rose 11.8%, while gross profit from the category jumped over 23%.

    CEO Jacek Olczak highlighted a “reacceleration” in IQOS and ZYN sales, especially in Europe, Japan, and the U.S., where ZYN’s offtake rose 36% in June. PMI’s e-vapor brand VEEV more than doubled shipment volumes, now leading in several European markets.

    Combustible products like Marlboro remained stable, contributing to a 2.1% revenue increase despite expected volume declines. PMI also declared a quarterly dividend of $1.35 per share. Buoyed by strong year-to-date performance, the company raised its full-year earnings guidance.

    Click here for the full financial report.

  • Cresco Labs to Exit California Cannabis Market

    Cresco Labs to Exit California Cannabis Market

    Cresco Labs Inc. announced plans to sell its California operations as part of a strategic restructuring aimed at boosting cash flow and focusing on higher-margin markets. The multistate cannabis operator is in talks with buyers for its cultivation, manufacturing, and select distribution assets in California, with a deal expected in the coming quarters. Cresco will retain its premium FloraCal brand, continuing its presence in key U.S. markets.

    CEO Charlie Bachtell cited California’s “structural challenges” and the lack of a scaled footprint as reasons for the exit, saying the move will allow Cresco to reallocate capital to core and emerging markets with clearer growth potential.

  • Study: 78M Cigarettes Smoked Daily in Britain

    Study: 78M Cigarettes Smoked Daily in Britain

    More than 78 million cigarettes are smoked each day across England, Wales, and Scotland—equating to roughly 900 every second—according to a new study by University College London (UCL), funded by Cancer Research UK.

    The study, published in Nicotine & Tobacco Research, highlights sharp inequalities in smoking habits. People from lower socioeconomic backgrounds smoke more—11 cigarettes a day on average—compared to 9.4 among more affluent groups. Regionally, smokers in the North East and Scotland top the charts with 11.7 cigarettes per day, while Londoners smoke the fewest at 8.4.

    Despite falling smoking rates—from 18.8% in 2013 to 11.9% in 2023—Britain is unlikely to meet its smokefree targets. England, aiming for 5% prevalence by 2030, is projected to hit that mark by 2039. Scotland may not reach it until the late 2040s.