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  • Imperial Brands, Japan Tobacco Gain Share in Italy as UK Volumes Slide

    Imperial Brands, Japan Tobacco Gain Share in Italy as UK Volumes Slide

    Cigarette and cigar volumes fell sharply in two key European markets during the four weeks ending in mid-May, according to Nielsen data cited by Bank of America, declining 14.3 percent in the UK and 5.9 percent in Italy. The figures point to continued contraction in combustible volumes overall, while individual manufacturers diverged considerably between the two markets, with Italy emerging as a relative bright spot for some players.

    Imperial Brands saw UK cigarette and cigar volumes fall 13.8 percent over the period, a market that represents roughly 6 percent of its tobacco and next-generation product revenue. In Italy, however, Imperial posted volume growth of 22.8 percent and gained about 150 basis points of market share. Japan Tobacco followed a similar pattern, with UK volumes down 13.9 percent but a 15-basis-point share gain in Italy and a 5.5 percent volume decline there.

    British American Tobacco and Philip Morris International fared less well on share. BAT’s UK volumes fell 20.3 percent, costing it roughly 50 basis points of share, while its Italian volumes dropped 7.3 percent for a loss of about 30 basis points; Bank of America estimates Italy and the UK together account for around 3 percent of BAT’s 2025 adjusted EBIT including new categories. PMI’s UK volumes declined 16.1 percent and its Italian cigarette volumes fell 8.1 percent, with share losses of roughly 20 and 100 basis points respectively, though the report notes that Nielsen’s EU data does not capture PMI’s heated tobacco products.

  • Brazil Readies Crackdown on Crime in Betting, Tobacco Sectors

    Brazil Readies Crackdown on Crime in Betting, Tobacco Sectors

    Brazil’s government is in the final stages of preparing operations targeting organized crime in the online betting and tobacco sectors, a senior government official with direct knowledge of the matter told Reuters. The move reflects a broader strategy to choke off criminal organizations financially, and the source said the plan would not change despite the United States’ decision to designate Brazil’s two largest gangs as terrorist organizations.

    According to the source, criminal groups are believed to be involved in cigarette smuggling and the illegal sale of tobacco products, as well as in infiltrating unlicensed betting platforms that continue to operate despite the sector’s regulation in Brazil. In both areas, small financial institutions, including fintechs, are allegedly being used to launder money.

    The official, who spoke on condition of anonymity because the discussions are not public, said the operations could be launched at any moment but that an exact timing could not yet be determined, given the need to coordinate with police authorities, prosecutors, and the judiciary.

  • Former HHS Secretary Urges FDA to Reach the “Forgotten Smoker”

    Former HHS Secretary Urges FDA to Reach the “Forgotten Smoker”

    In an opinion piece, Dr. Tom Price — a physician, former member of Congress, and former Secretary of Health and Human Services who spoke at ATNF 2025 — argues that roughly 25 million American adults who still smoke have been left out of the public health conversation, even as Washington increasingly treats smoking as a solved problem. Writing from a clinical perspective and citing the loss of his father to smoking-related disease, Price frames continued smoking as one of the nation’s most persistent health challenges. His central reference point is “The Forgotten Smoker,” a new white paper from Philip Morris International U.S. that urges policymakers to confront stalled progress among those still at greatest risk.

    Price builds his case on the principle that the greatest harm from tobacco comes from combustion, noting that the FDA itself recognizes a continuum of risk with cigarettes at the most dangerous end and smoke-free alternatives generally posing lower risk than continued smoking. He argues that for adults who do not quit nicotine entirely, moving away from cigarettes can be a meaningful health intervention, but that this message is not reaching the people who need it, in part because clinicians often feel unprepared to discuss it accurately.

    To illustrate the communication gap, the article cites a PMI U.S.-commissioned survey of 1,565 U.S. healthcare practitioners, fielded by Povaddo, in which 47 percent mistakenly believed nicotine is a carcinogen and another 19 percent were unsure. The same survey found that 69 percent wanted the FDA to share clinical evidence on the harm-reduction role of smoke-free products, 68 percent wanted guidance on counseling patients, and 95 percent said they would share FDA-provided information with patients. The white paper research also found widespread public misperception, with 52 percent of Americans incorrectly believing nicotine causes cancer and 73 percent believing all tobacco and nicotine products are equally harmful.

    Price’s recommended path is straightforward: the FDA should equip clinicians with plain-language guidance developed with input from practicing physicians, explaining what the agency has authorized and how to have evidence-based conversations with adult smokers. He urges the agency to state plainly that smoke, not nicotine, drives the greatest risk, to make authorization decisions understandable to non-experts, and to communicate directly with populations overrepresented among continuing smokers, including older Americans and veterans.

  • Charlotte’s Web Closes BAT Transaction, Adds $10 Million Equity Injection

    Charlotte’s Web Holdings has completed a two-part transaction with BT DE Investments, a subsidiary of British American Tobacco, that converts existing debt to equity and brings in fresh capital. The company first amended and converted in full the convertible debenture it had issued to BAT on November 14, 2022, which carried a principal of CAD75,341,080 (USD54.7 million). Together with CAD14,223,321 (USD10.3 million) in accrued interest, the total converted amount of CAD89,564,401 (USD65 million) was settled through the issuance of 95,281,277 common shares at a conversion price of CAD0.94 per share.

    Concurrently, BAT subscribed to a non-brokered private placement of 14,662,765 additional common shares at the same CAD0.94 price, generating gross proceeds of USD10 million (CAD13.8 million). The company said the net cash will support its participation in the anticipated CMMI Medicare pilot program and other medical-channel initiatives, a pathway intended to let eligible Medicare beneficiaries access CBD products through physician consultation, subject to program requirements and regulatory approvals. The transaction remains subject to final approval from the Toronto Stock Exchange.

    CEO Bill Morachnick framed the deal as a strengthening of the company’s balance sheet and capital position, describing increased financial flexibility and a streamlined capital structure that better positions Charlotte’s Web to execute its growth strategy and expand access. Charlotte’s Web, a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness company focused on hemp extract products, including full-spectrum and broad-spectrum CBD as well as other cannabinoid offerings. Its shares trade on the TSX under “CWEB” and on the OTCQX under “CWBHF.”

  • Alaska Vape Tax Heads to Governor’s Desk

    Four years after Governor Dunleavy vetoed a similar measure, the Alaska Legislature passed Senate Bill 24, imposing the state’s first tax on electronic cigarettes and related products. The bill passed the House 24-16 and cleared the Senate on a 15-5 concurrence vote on May 20, the final day of the legislative session. The legislation was the third such bill championed by retiring Senate President Gary Stevens, R-Kodiak, who framed it as a measure to counter the tobacco industry’s efforts to attract young users as traditional cigarette consumption declines.

    If signed into law, the bill would impose a 25% tax on retail e-cigarette products and prohibit purchases by anyone under 21, matching the legal age for traditional tobacco. The state’s tobacco tax had not been updated since 2006, before e-cigarettes were widely marketed, and while many Alaska municipalities had since updated their tax systems to include vaping products, the state had not. The State Department of Revenue estimates the new tax would generate between $1.36 million and $3 million annually.

    A notable structural difference from the 2022 version that Dunleavy vetoed, which proposed a 45% wholesale tax, is the shift to a retail-level tax. The change reflects the varying types of e-cigarette products: while some are sold as complete units, others are assembled by retailers from liquids and components, making it very difficult to track down all suppliers for a wholesale-level tax. During the legislative process, an amendment was also added to include synthetic nicotine products within the scope of the tax program.

    The most controversial amendment to the bill allows indoor smoking at designated cigar bars, added during House floor debate. While anti-tobacco organizations had advocated for the bill, they said the cigar amendment undermines smokefree environment protections, with the American Heart Association, the American Cancer Society Cancer Action Network, and the American Lung Association issuing a joint statement that there is no safe level of exposure to secondhand smoke.

    The bill now awaits action by Governor Dunleavy, whose office declined to comment on whether he intends to sign, veto, or allow it to become law without his signature. The Alaska legislation arrives as the Trump administration moves in the opposite direction at the federal level: the FDA on May 5 authorized the use of four types of flavored vapes, including mango and blueberry, and the federal government continues to impose no excise tax on e-cigarette products.

  • Arizona Advances Landmark Vape Bill

    The Arizona Senate passed House Bill 4001 on May 26 with an overwhelming bipartisan vote of 24-2, establishing the state’s first formal regulatory framework for alternative nicotine products including e-cigarettes and vapes. The bill assigns enforcement authority to the Arizona Department of Liquor Licenses and Control, which will also be responsible for inspecting distributor and manufacturing facilities. The measure still requires a return to the House for final approval before heading to Governor Katie Hobbs to sign or veto.

    The bill’s strong Senate majority was largely attributed to a near 40-page amendment added since the House’s earlier passage in March, which further clarified the liquor department’s role and the regulatory obligations of distributors and manufacturers. HB 4001 establishes a tiered penalty system for selling alternative nicotine products to anyone under 21, beginning with a minimum $500 fine and a mandatory educational course, escalating to a $10,000 fine and a one-year license suspension upon a fourth subsequent violation.

    Not all legislators were satisfied with the bill’s scope. Sen. Mitzi Epstein, one of the two dissenting votes, argued that vapes should be regulated identically to tobacco products, including under a unified retail license covering all nicotine products, and expressed concern that the bill leaves open what substances may or may not be included in alternative nicotine products. Rep. Cesar Aguilar had previously argued the $10,000 cap on fines was insufficient and that companies might simply absorb it as a cost of doing business.

    A related fiscal issue surfaced in the debate: First Things First, an early childhood education program funded by a voter-approved 2006 tobacco tax, has seen its annual revenue fall from roughly $165 million to approximately $90 million as consumers have shifted from taxed tobacco products to untaxed vapes. Some Democrats pushed for a vape tax to restore that funding, but Republican leadership characterized any tax provision as a legislative “poison pill” that would have killed the bill entirely, and it was not included.

  • Thailand Considers Generational Nicotine Ban

    Thailand’s Public Health Ministry is studying a Nicotine-Free Generation policy that would permanently prevent children and young people born after a specified year, or within a defined age group when the law takes effect, from ever legally purchasing cigarettes, e-cigarettes, or nicotine products. Public Health Minister Pattana Promphat framed the proposal as part of a broader effort to reduce the long-term healthcare burden associated with smoking, noting that treating patients with smoking-related illnesses strains both the financial resources and medical personnel of the healthcare system.

    The policy would not constitute an immediate ban on cigarette sales or smoking. Instead, the government could set a starting point based on age or year of birth — for example, children aged 10 or 12 when the law takes effect could become the first group permanently barred from buying cigarettes, e-cigarettes, or nicotine products when they reach the current legal purchasing age of 20. The minister stated the measure aims to steadily reduce the number of new smokers in the future and will not affect existing smokers, tobacco factories, or current tobacco farmers.

    The ministry acknowledged the proposal’s wide-ranging commercial implications. Possible support measures for tobacco farmers and those in related agricultural supply chains could include compensation, help switching to alternative crops, educational support for their children, and improved community infrastructure.

    The proposal follows generational tobacco-control measures adopted or passed in other countries. The Maldives implemented a generational tobacco ban in November 2025, prohibiting anyone born on or after January 1, 2007, from legally buying, selling, or using tobacco products. The United Kingdom’s Tobacco and Vapes Act 2026 also prohibits the sale of tobacco products to people born on or after January 1, 2009. The policy remains in early-stage study, with the ministry preparing to gather opinions from all affected sectors before moving forward.

  • Minnesota Communities Push Flavored-Vape Bans as FDA Eases Restrictions

    As the Trump administration signals a softer stance on flavored vapes , anti-tobacco advocates in Minnesota are intensifying efforts to restrict flavored nicotine products at the local level. A coalition called “Love Your Lungs Olmsted” has formed in Olmsted County to push for a ban or restrictions on flavored vape sales. The campaign reflects a decade-long trend: 28 cities and 8 counties across Minnesota have now enacted some form of flavored nicotine restriction, with the Minneapolis suburb of Plymouth being the most recent, approving a ban in April 2026.

    The federal backdrop is driving renewed urgency at the local level. On May 5, the FDA released guidance allowing California-based manufacturer Glas to market fruit-flavored e-cigarettes — including blueberry and mango variants — bringing the total number of FDA-authorized vapes to 45. Reporting from the Wall Street Journal and others indicated the FDA was under significant pressure from President Trump to approve the flavors, and the decision is cited as a factor in the departure of former FDA Commissioner Marty Makary.

    Teen nicotine use, while declining, remains a concern animating the local push. According to the FDA’s National Youth Tobacco Survey, fewer than 10 percent of high school students reported nicotine use in the past 30 days in 2025 — down from a record high of 31 percent in 2019. Public health advocates and school officials argue that flavored products are the primary gateway, with the vast majority of underage users consuming flavored vapes. A chemical health specialist at Rochester Public Schools reported approximately 70 student referrals related to nicotine and THC abuse in the past school year, noting that vaping often precedes broader substance use.

    Not all stakeholders support broad flavor bans as the most effective remedy. Brad Erpelding, president of Northland Vapor, which operates multiple locations in Fargo, North Dakota, argues that restricting sales to age-verified specialty shops — rather than gas stations and convenience stores — would be more targeted and effective. He points to the practical limitation of local bans: when Moorhead, Minnesota enacted its ordinance in 2021, he simply closed that location and opened a new store across the state line in Fargo, which was profitable within the week. The newly FDA-approved Glas vapes include technology pairing the device to the purchaser’s phone to verify the buyer is 21 or older, though anti-tobacco advocates expressed skepticism about the industry’s commitment to enforcement.

  • UK Price Cap Could Raise Billions and Cut Deaths, U. of Bath Study Finds

    Research published by the University of Bath Tobacco Control Research Group and the University of Sheffield’s Addictions Research Group provides the first real-world modelling of a proposed “polluter pays” tobacco levy scheme for the United Kingdom. The study found that the proposed policy could raise between £1 billion and £4.9 billion over five years, depending on the level of price cap and how quickly it is introduced. It could also prevent up to 10,000 hospital admissions and save almost 44,000 years of life over a 20-year period.

    The levy could be delivered by setting a maximum wholesale price that the industry could charge for tobacco products, thereby preventing the industry from using price as a promotional tool. To stop shop prices from falling, the government would raise taxes to offset falls in wholesale prices. The researchers argue this structure would extract revenue from tobacco company profits rather than from consumers or small retailers.

    The University of Sheffield team led a dynamic micro-simulation modelling exercise for England, tracking 250,000 individuals aged 18 to 89 across six scenarios, varying the stringency and speed of tobacco price cap implementation. An immediate hard cap in England could generate £4.9 billion by 2029 and, by 2044, lead to 1,636 fewer deaths, 43,987 fewer years of life lost, and 10,073 fewer hospital admissions.

    Across all six scenarios, researchers observed a consistent pattern: a narrower price range in the market, reduced smoking prevalence, higher tax revenues, and fewer deaths and hospital admissions. While industry revenues declined, consumer expenditure remained largely unchanged. Advocates including Action on Smoking and Health (UK) and Cancer Research UK have championed the idea, and the study’s authors called on UK ministers to consult on introducing the levy as a long-term tool to make the country smokefree within the next 20 years.

  • Artesano del Tobaco Announces Three New Releases

    Artesano del Tobaco has shared updates on three upcoming releases — two slated for 2026 and one targeting 2027. The announcements came via an email to the company’s subscriber list and was reported by Halfwheel.

    The first release is the Viva La Vida Connecticut Lancero, a vitola selected through a poll of the company’s email list, where a Churchill finished first and the Lancero second. Originally announced at the 2026 PCA Convention & Trade Show with a September target and a 38 ring gauge, the latest communication shifts the release window to “summer” and lists the ring gauge at 40. MSRP remains $17 per cigar.

    The second 2026 release is the El Pulpo Corona Gorda, a box-pressed 6½ x 48 described as medium-bodied. The blend features a Mexican San Andrés wrapper over a Nicaraguan binder and Nicaraguan fillers. No pricing has been announced; a fall release is the current target.

    Looking further ahead, the company is teasing a new line called Oro Corojo, developed over four years in collaboration with AJ Fernandez. The blend is described as 80 percent complete, with no details yet disclosed on sizes, blend specifics, or pricing. Artesano del Tobaco is targeting a debut at PCA 2027, scheduled for March 6–8 in Las Vegas. All of the company’s lines are produced by AJ Fernandez in Nicaragua.