TobaccoReporter logo

Blog

  • Keller & Heckman Offers EPR for Packaging Webinar

    Keller & Heckman Offers EPR for Packaging Webinar

    Keller and Heckman LLP announced it is broadcasting a complimentary webinar for tobacco and nicotine companies, “EPR for Packaging is Here: What Tobacco & Nicotine Companies Need to Know,” hosted by company partners Azim Chowdhury and Katie Skaggs. Scheduled for June 24 at 11 a.m., the 30-minute event will provide an overview of existing and emerging Extended Producer Responsibility (EPR) legislation impacting tobacco and nicotine packaging and the obligations coming due.

    As early as July 2025, “producers” of covered products will need to join and pay dues to a “Producer Responsibility Organization” (PRO) as part of states’ EPR programs covering a wide array of packaging. Oregon, for example, will collect dues from producers of packaging starting in July, but it is only one of several states that have adopted EPR programs for packaging, and EPR policies continue to gain momentum around the U.S.

    According to Keller & Heckman, tobacco and nicotine companies should know that the new responsibilities created by these schemes – including reporting obligations and fee payments for packaging – may fall directly on them. This webinar intends to catalog the EPR schemes now in place and discuss practical steps that tobacco and nicotine companies can take to comply. 

    Click here to register.

  • EU Sees Highest Rate of Illicit Cigarettes Since 2015

    EU Sees Highest Rate of Illicit Cigarettes Since 2015

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, smokers in the European Union consumed 38.9 billion illicit cigarettes in 2024, a 10.8% increase versus 2023, the highest level since 2015. That number accounts for 9.2% of total cigarette consumption, with governments losing as much as €14.9 billion in tax revenues at a time when many countries face intense economic pressures and rising black markets.

    PMI called for effective policymaking to counter the growing threat of illicit trade, and said it believes that steep and abrupt tax increases are exacerbating the issue and benefitting criminals who supply unregulated, untaxed, and inferior products. To combat this growing threat, PMI urges the adoption of evidence-based regulation with balanced and predictable taxation through tax calendars, continued public-private collaboration, and enhanced support of regional and national law enforcement agencies.

    “The illicit tobacco trade threatens the European economy, public health, security, and social stability; today, higher-taxed and higher-priced markets such as France and the Netherlands are especially impacted by illegally imported and counterfeit goods,” said Christos Harpantidis, PMI’s Senior Vice President, External Affairs. “Its massive socioeconomic impact negatively affects tax collection, job creation, and legitimate businesses, the engine of our European economies. The availability of cheap, unregulated cigarettes in the underground economy also impairs efforts to reduce smoking rates and achieve a smoke-free future.”

    France has the largest illicit market in Europe, reaching 18.7 billion illicit cigarettes consumed last year, 37.6% of total consumption. The Netherlands saw the largest increase in illicit cigarettes, which doubled to 17.9% of total consumption.

    A detailed overview of the results, country profiles, and methodology of the KPMG study is available here.

  • Dutch Foundation Threatens SnapChat Over Vape Marketing

    Dutch Foundation Threatens SnapChat Over Vape Marketing

    Dutch anti-smoking foundation Stichting Rookpreventie Jeugd is threatening legal action against social media giant SnapChat, accusing the platform of facilitating the illegal sale of vapes to minors. The foundation imposed a two-week deadline to take action before it files a formal complaint with the Netherlands Authority for Consumers and Markets (ACM) and the European Commission, potentially triggering regulatory intervention.

    Despite a national ban on flavored vapes implemented over a year ago, such products continue to circulate online, including on SnapChat.

    “SnapChat is the place for vape dealers to reach teens, children tell us,” said Dr. Daniëlle Cohen, a lung pathologist affiliated with the group. “We are seeing a growing number of young people suffering from serious nicotine addiction, with major consequences for their physical and mental health.”

    Lawyer Laura van Gijn, representing the foundation, says SnapChat is failing to meet its obligations under the Digital Services Act, which requires platforms to actively monitor and restrict harmful content. “If SnapChat can recognize and remove nude images, it can certainly exclude the promotion of vapes,” she told Dutch broadcaster NOS.

  • Report: Black Marketeers Continue to Evolve with Technology

    Report: Black Marketeers Continue to Evolve with Technology

    Tobacco smugglers and black marketeers are increasingly using technologies such as social media and drones to deliver cigarettes to smokers in Europe and avoid law enforcers, a report found.

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, the illegal networks’ flexible strategies have helped illicit consumption increase 10.8% in the EU from 2023, with criminal groups shifting toward smuggling smaller packages, more often, via budget airlines, railways, and drones. They are also increasingly bypassing physical stores to sell directly to consumers on social media.

    The report showed that criminal groups are holding less inventory, which is reflected in a decrease in the size of illicit cigarette seizures as the gangs mitigate their risks and reduce the impact of raids by law enforcers. The more recent change in tactics follows another shift from 2020, when the groups moved production closer to end-markets, partly in response to the pandemic disruption, and also reducing the chance of detection.

  • Industry-First ‘Assured Advice’ on Nicotine Pouch Packaging Published

    Arcus Compliance Limited, a leading UK regulatory consultancy, today (June 11) published the first ever Assured Advice on nicotine pouch packaging requirements in England — a major development for businesses operating in the evolving nicotine alternatives market.

    Authored by John Donoghue, commercial director at Arcus Compliance, with oversight from Jennifer Harker of Cambridgeshire and Peterborough Trading Standards, the guidance provides much-needed regulatory clarity for manufacturers, distributors, and retailers of nicotine pouches.

    Assured Advice is available to businesses under Arcus Compliance’s coordinated Primary Authority Partnership (PAP) scheme, representing a critical step toward regulatory certainty in an increasingly scrutinized product category. The advice offers a comprehensive interpretation of: General Product Safety Regulations (GPSR); Great Britain Classification, Labelling and Packaging (CLP) legislation; and PAS 8877:2022 — the British Standards Institution’s guidance for oral nicotine products.

    “This document will become the de facto standard for packaging compliance across the UK,” said Shem Baldeosingh, director at the Global Institute for Novel Nicotine (GINN). “GINN members will directly benefit from this excellent resource and leadership.”

    Click here to request a copy of Assured Advice.

  • Pakistan Increases Tobacco Tax 240%

    Pakistan Increases Tobacco Tax 240%

    With cigarette manufacturers in Pakistan already pointing to an excessive Federal Excise Duty (FED) as a reason for a significant decrease in sales and a rising black market, the federal government announced it is imposing a 6% withholding tax on cigarette distributors in the 2025-26 budget, senior sources told ProPakistani. This will be an increase from the previous 2.5% rate.

    The provision for withholding tax rates under Section 153 of the Income Tax Ordinance will be changed to charge the new tax on the gross amount of payment received by distributors when they hand over cigarette sticks to retailers.

    It was previously reported that Pakistan’s government was facing pressure from the World Health Organization to increase its FED further.

  • Raíces Cubanas Expands into Germany

    Raíces Cubanas Expands into Germany

    Raíces Cubanas entered into an exclusive distribution partnership with Vandermarliere Cigar Family (VCF)/Woermann Cigars to expand its line to Germany, with initial shipments to retailers scheduled for June 16. VCF, the parent company of Oliva and J. Cortès, is known for its strong European network and premium cigar portfolio. The move into Germany represents the brand’s first step into international markets.

    As part of the expansion, two core product lines will be introduced to the German market: Raíces Clasico, available in Robusto (5 x 50), Toro (6 x 52), and Figurado (5 3/16 x 54); and Raíces C5 Black, offered in Robusto (5 x 52), Toro (6 x 52), and Gordo (6 x 60).

    “We are very excited to present the Raíces brand to cigar enthusiasts in Germany,” Ralph Montero, owner of Raíces Cubanas said in a press release. “This is the first step in the expansion of Raíces into cigar markets around the world.”

  • CAA Seeks New Definition of “Premium Cigar”

    CAA Seeks New Definition of “Premium Cigar”

    The Cigar Association of America (CAA) has submitted a revised definition of “premium cigar” in its ongoing legal battle with the U.S. Food and Drug Administration. Filed June 6 as part of Cigar Association of America et al. v. United States Food and Drug Administration et al., the brief marks a shift from the working definition previously agreed upon by Judge Amit P. Mehta, the Premium Cigar Association (PCA), and Cigar Rights of America (CRA).

    Mehta, CRA, and PCA have been satisfied with an eight-point working definition, however earlier this year the CAA said it was opposed. Last week in its brief, the CAA said it “does not agree that the definition suggested by the agency and adopted in the Court’s previous rulings is the proper definition of a premium cigar, or that it was properly adopted. That organization’s proposed definition is reflected in the comments it submitted in response to the Proposed Rule.”

    The CAA proposed modifying the definition to a five-point standard: that is wrapped in whole tobacco leaf; contains a 100% leaf tobacco binder; made by manually combining the wrapper, filler, and binder; has no filter, tip, or non-tobacco mouthpiece, and is capped by hand; and weighs more than six pounds per 1,000 units.

    CAA’s proposed five-point standard omits language prohibiting characterizing flavors and allows for machine-assisted production. It also lowers technical requirements for filler content. The FDA, CRA, and PCA must respond to the proposed changes by July 7.

  • Cigar Associations Team to Commission Study on Tax Cap Policies

    Cigar Associations Team to Commission Study on Tax Cap Policies

    Today (June 10), the Premium Cigar Association (PCA) and the Cigar Association of America (CAA) announced they are collaborating on a national study of cigar tax cap policies enacted and planned throughout the nation. The PCA and CAA have commissioned Goss & Associates, led by Dr. Ernie Goss, who serves as chair in regional economics at Creighton University, to undertake the study. Goss has published more than 100 studies on economic forecasting and on statistical analysis of business and economic trends.

    “This is a first-of-its-kind study that should produce a historic perspective on cigar tax policy, coupled with an analysis that charts a path forward in the states,” PCA executive director Joshua Habursky said. “Having a study produced by an economist of Dr. Goss’s acclaim is a testament to how serious PCA and CAA are on this pressing issue as we initiate this project.” 

    The study will evaluate the effectiveness of cigar tax caps as a matter of state policy and the direct and indirect economic impact of premium cigars for each state, including local, state, and federal taxes.

    “Since 1977, the CAA economic and statistics program has provided actionable insights to support industry advocacy,” CAA president Scott Pearce said. “Currently, we find ourselves having to defend existing tax caps, as well as working to advance new cap bills, in addition to addressing reform of statutes in some states.  And in this regard, research and substantiated data are the number one requests of state legislatures. CAA is excited to be partnering with PCA to further progress our advocacy with this new study.” 

    The study results are expected to be released in 2025.

  • CEA Industries Acquires Fat Panda to Enter Canadian Vape Market

    CEA Industries Acquires Fat Panda to Enter Canadian Vape Market

    CEA Industries Inc. has completed its CAD $18 million ($12.6 million) acquisition of Fat Panda Ltd., Canada’s largest independent vape retailer and manufacturer. The deal provides CEA with a profitable foothold in the regulated nicotine market, with Fat Panda generating nearly CAD $38.5 million ($28.1 million) in annual revenue and holding more than 50% market share in central Canada.

    “This acquisition marks a significant milestone for CEA as we expand into a dynamic, high-growth regulated vertical benefiting from strong consumer demand,” said Tony McDonald, Chairman and CEO of CEA Industries. “Fat Panda brings an established brand, experienced leadership, and a highly profitable operating model that can be rapidly scaled with our capital and strategic support. Importantly, this acquisition exemplifies our commitment to identifying accretive opportunities that can unlock meaningful long-term value for our shareholders.”

    Fat Panda will retain its leadership and branding during the integration.