TobaccoReporter logo

Blog

  • Cyprus Cigar Shortage Nearing End

    Cyprus Cigar Shortage Nearing End

    Retailers in Cyprus have been assured that the nation’s cigar shortage, particularly cigarillos, will soon come to an end. Phileleftheros reported that for the last month consumers were finding the most popular brands out of stock, leading them to purchase alternative brands, which led to depleted stocks across the board. Customers even resorted to calling stores in advance to reserve cigars and cigarillos.

    This past year saw limited availability of cigars and cigarillos from Cuba, from which Cyprus imports more than half of its product. Cuban cigars account for €41 million of the €52 million of cigars Cyprus imports. A second factor in the shortage came from changes implemented by the European Union regarding the traceability of tobacco products. Starting in 2020, these changes were applied to cigarettes, and from last year, cigars and cigarillos were also included. According to the new regulations, the packaging of these products must feature a unique marking that must be scanned with every transaction.

    However, both of these issues appear to have been resolved. Phileleftheros learned that large shipments of cigars and cigarillos have already been imported into Cyprus, and these products are expected to be back on the shelves beginning today (April 7).

  • Zimbabwe Tobacco Market Picking Up Steam

    Zimbabwe Tobacco Market Picking Up Steam

    Twenty-three days after Zimbabwe’s tobacco season opened, all parties are reporting to be relatively satisfied with farmers already earning $143 million from 41.6 million kilograms of flue-cured tobacco sold. As is typical for this point in the season, the majority of the tobacco is still in the field, and thus far, the highest-quality product has been scarcely seen.

    According to the Tobacco Industry and Marketing Board (TIMB), 39.2 million kg, valued at $135.2 million, had been sold by contracted growers, while 2.4 million kg, worth $7.7 million, had come from self-financed farmers. Last year, farmers sold 56.7 million kg of flue-cured tobacco valued at $200 million.

    The increase in tobacco production has been attributed to viable prices, an organized market, and the availability of funding through contractors and the government.

    The average price at auction was $3.43 per kg, compared to $3.53 last year, but growers are confident that the price will continue to rise as they grade and bail the best of their product.

    “The participation of merchants has really improved,” said Sam Garabha, operations manager for Premier Tobacco Auction Floors. “Our farmers are quite happy and excited with the offers they are receiving at the auction floors, although we expect better quality. During the past week, we were receiving lower and middle grades, but, as the harvest continues, we are noticing significant improvements in prices.”

    Source: “The Sunday Mail”, Harare; 6 Apr 2025

    Farmers pocket US$143m as auction activity picks up
  • Esse Cigarettes Power KT&G’s Global Push

    Esse Cigarettes Power KT&G’s Global Push

    KT&G’s ultra-slim cigarette brand, Esse, continues to enjoy strong and steady demand in the Middle East and Central Asia — emerging as one of South Korea’s fastest-growing processed food exports in the first quarter of this year, according to the company.

    According to data released by the Ministry of Agriculture, KT&G’s cigarette exports rose 14.5% year-on-year during the January–March period, ranking second in export growth behind ramyeon, which saw a 27.3% increase.

    “In the Gulf Cooperation Council (GCC) region, including the UAE, the Korean Wave has played a major role in boosting interest in slim cigarettes made in Korea,” said an official from the Agriculture Ministry. “At the same time, exports to Commonwealth of Independent States (CIS) countries, such as Russia and Mongolia, have also grown, fueling further momentum.”

    KT&G’s cigarette exports to GCC countries reached $49 million in the first quarter, marking an 83.6 percent year-on-year increase. Exports to CIS nations more than doubled to $29 million over the same period. Among these markets, Mongolia stood out, where KT&G’s localization strategies have helped the company capture a market-leading share of over 50%, the company said.

    Last year, KT&G posted 1.45 trillion won ($986 million) in overseas sales, up 28% from the previous year, driven largely by strong cigarette demand. Its cigarette exports alone reached 58.6 billion won ($39.9 million).

    Indonesia remains KT&G’s largest export destination, while Central Asian countries such as Uzbekistan are rapidly emerging as key growth markets. KT&G sold 270 million cigarettes in Uzbekistan last year, ahead of launching a local office there in January. The company has also secured the top market share in Tajikistan and third place in Kazakhstan.

    To meet growing global demand, KT&G is building new manufacturing facilities in Kazakhstan and Indonesia, set to be completed by 2026.  

  • Tobacco Prices Climb in Spain 

    Tobacco Prices Climb in Spain 

    Several popular cigarette brands in Spain went up in price this weekend following a resolution published in the Boletín Oficial del Estado (BOE), Spain’s official state bulletin.

    The updated price list affects shops across mainland Spain and the Balearic Islands. Brands like Marlboro, Chesterfield, Ducal, and Austin are all included, with prices per pack now starting at €4.60 and going up to over €9, depending on the format and brand.

    The rise comes just weeks after other well-known names such as Fortuna, Nobel, L&M and Winston were hit by similar price hikes. It’s part of an ongoing adjustment that’s slowly nudging Spain’s tobacco prices closer to the European average — although for now, they still remain among the lowest on the continent.

    The pricing update also includes cigars and pipe tobacco, with brands like Zino Nicaragua and specialty pipe blends from Musth, Musthave and Tangiers climbing as well. Some pipe tobacco tins are now priced at nearly €22 for 125 grams, while others like Tangiers can hit €35 for a 250 g pouch.

  • REJO Expanding its HNB to Europe

    REJO Expanding its HNB to Europe

    REJO, a global provider in heat-not-burn solutions, presented a new product, logo, and slogan as it announced its expansion into the European market.

    The company introduced new varieties of its TOZE herbal sticks, inspired by East Asia’s rich tradition of tea-based cigarettes, that combine natural tea fibers, nicotine, and precisely balanced flavors. The sticks are meant to pair with the REJO HS40 heating device.

    “Early market feedback from France, particularly among traditional tobacco retailers, has underscored the growing demand for TOZE products,” the company said in a statement. “Praised for their consistent aroma and reduced smoke odor, TOZE herbal sticks are well-positioned to meet the rising market demand for flavored alternatives.

    “As REJO continues its global expansion, the company remains committed to its mission of redefining the smoking experience through innovation, reliability, and sustainability. With a strong foundation in place and ambitious plans for growth in Europe and beyond, REJO is committed to delivering reliable alternatives that empower consumers to make informed choices about their smoking experience.”

    Headquartered in China, the company says it currently has products available in nearly 10,000 retail outlets across Russia, the Middle East, and Southeast Asia. The company said it will begin its European expansion initially focusing on the Czech Republic and Switzerland. REJO has already secured key EU regulatory approvals, including: Tobacco Products Directive (TPD) registration, Poison Centre Notification (PCN) compliance, and Track-and-Trace registration.

    The company’s new slogan is, “Take a Break. Take REJO.” Its brand redesign features an extended “O” with a petal-like shape and vibrant color palette that, according to the company, “center around a warm, inviting shade of green-symbolizing comfort, relaxation, and a natural connection to the essence of the product.”

  • IQOS and SELETTI Create “Sensorium” for Milan Design Week

    IQOS and SELETTI Create “Sensorium” for Milan Design Week

    Philip Morris International collaborated with renowned design brand SELETTI to create a virtual, multisensory space where people can meet, converse, and connect as part of Milan Design Week in Italy. The project is titled “Curious X: Sensorium Piazza,” and “bridges the physical and digital worlds, creating an unexpected dimension where art and technology intertwine to create meaningful and extraordinary interactions,” all centered around the traditional Italian piazza. The exhibit will be available at Opificio 31, inside Tortona Rocks from April 7 to 13 2025.

    “Our collaboration with SELETTI is driven by the shared belief that curiosity paves the way to groundbreaking creativity which inspires us to connect, explore new possibilities beyond the limits and challenge the status quo,” said Stefano Volpetti, PMI’s President of Smoke-Free Products & Chief Consumer Officer. “Being forever curious at IQOS is what ultimately enables our quest for the continuous development of better smoke-free alternatives versus smoking,”

    The project also marks the debut of the new experiential platform IQOS Curious X, intended to deliver inspiring experiences to the brand’s ever-growing community of adult consumers. “Curiosity—the engine of creativity and innovation—is at the heart of the journey experienced by the over 32 million users of IQOS globally,” the company said. “Curiosity is at the core of IQOS’ quest to continuously innovate for the better, and this will be brought to life through a yearlong collaboration with SELETTI.”

    Through a multi-platform installation, featuring dynamic technologies and an ever-changing digital canvas molded by real-life interactions, the piazza will transform itself from day to night into an archive of human connections, processing the memories, voices, and figures of those who pass through the exhibit. Paying homage to the bold contrasts and pop reinterpretations typical of SELETTI’s work while at the same time experimenting with innovative codes, Sensorium Piazza transforms each guest from spectator to main character.

  • Bidi Opens Latest Appeal Against FDA

    Bidi Opens Latest Appeal Against FDA

    Yesterday (April 2), Bidi Vapor LLC urged the Eleventh Circuit to reverse a U.S. Food and Drug Administration decision denying its application to market a disposable e-cigarette, saying the agency acted unlawfully. In oral arguments in Miami, attorney Eric Gotting told an appellate panel that the FDA’s decision was “arbitrary and capricious and unlawful,” and that the agency admitted adult smokers would likely switch to Bidi’s safer product—a disposable e-cigarette prefilled with tobacco-flavored e-liquid—but still denied the application.

    In January 2024, the FDA issued a marketing denial order (MDO) for the tobacco-flavored Bidi Stick-Classic disposable vape. The decision came while the agency was continuing a court-ordered second review of marketing applications for flavored Bidi Vapor products. The FDA said Bidi’s premarket tobacco application “did not demonstrate an overall net benefit to people who use tobacco products and lacked sufficient evidence to address health risks.”

    Bidi believes the FDA violated the Administrative Procedure Act and hopes to build on its record of successfully contesting adverse FDA decisions. In August 2022, the 11th Circuit set aside the original MDOs issued for its 10 non-tobacco-flavored products. That ruling put the 10 PMTAs back into scientific review and allowed those flavors to remain available for sale pursuant to the FDA’s compliance policy for deemed tobacco products.

  • PMI Outlines Smoke-Free Progress in Annual Report

    PMI Outlines Smoke-Free Progress in Annual Report

    Philip Morris International today (April 3) published its sixth annual Integrated Report, marking the company’s 10th year of business transformation and sustainability disclosures. The document details PMI’s continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible.

    “Our 2024 Integrated Report celebrates a milestone year that marked the 10thanniversary of the commercialization of IQOS, VEEV, and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,” said Jacek Olczak, Chief Executive Officer of PMI. “By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach an estimated 38.6 million adult users, with the products available in 95 markets, demonstrating our deep commitment to sustainability and business transformation. These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.”

    The report describes the company’s strategy, business model, and both product-related and operational-related performances. The report explains the company’s performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact

    “The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control,” said Emmanuel Babeau, Chief Financial Officer of PMI. “Our smoke-free business accounted for approximately 39% of PMI’s total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey. Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.”

    Performance Highlights:

    • Six markets where more than 75% of net revenues are generated are smoke-free
    • $14 billion cumulative investment behind smoke-free products since 2008
    • 99% of total shipment volume covered by youth access prevention programs in indirect retail channels
    • 0.01% prevalence of child labor among contracted farmers supplying tobacco to PMI
    • 10 human rights impact assessments completed since 2018 in highest-risk countries
    • 61% of PMI manufacturing facilities certified as carbon neutral
  • Cigar Industry Preparing for Trump’s Tariffs

    Cigar Industry Preparing for Trump’s Tariffs

    Yesterday (April 2), President Trump announced that the United States would be implementing widespread tariffs on nearly all products imported into the U.S., which would seemingly include cigars and smoking accessories.

    The Administration is implementing a 10% baseline tariff on nearly all imported goods from all countries except goods that are compliant with the USMCA free trade agreement between the U.S., Mexico, and Canada. Additionally, a group of approximately 60 countries is facing additional reciprocal tariffs that are half the rate they charge to the United States.

    “We are monitoring the situation and engaging with appropriate stakeholders to protect the robust premium cigar market in the United States,” said Joshua Habursky, executive director of the Premium Cigar Association. “The administration is well aware of the importance of small business retail in main streets across the country, and we are hoping to mitigate cost burdens on retailers, manufacturers, and consumers overall. America is first in the premium cigar retail space, and we plan to continue to hold that position.”

    The announced new reciprocal tariffs for countries that are relevant to the U.S. cigar industry include:

    • Dominican Republic and Honduras: 10% (matching the universal rate).
    • Nicaragua: 19% (reflecting its 36% tariff on U.S. goods).
    • Costa Rica: 10% (despite a 17% tariff on U.S. goods).
    • Mexico: USMCA-compliant cigars remain at 0%, but non-compliant goods face a 12% tariff if existing fentanyl/migration measures lapse.
    • China: 34 percent
    • European Union: 20 percent

    Writing for halfwheel, Patrick Lagreid said, “The largest percentage increase will not affect cigars, but the accessories used to light and cut them. Products imported from China, which produces a significant amount of cigar accessories, from lighters to cutters, ashtrays, humidors, and other products, will be subject to a 34% reciprocal tariff. This is in addition to a previously implemented 20% tariff, bringing the total to 54%. Last year, multiple executives at cigar accessory companies told halfwheel they were concerned about the potential tariff if Trump were to win the election.”

    The baseline 10 percent tariffs are scheduled to take effect April 5 at 12:01 am ET, and the reciprocal tariffs are slated to go into effect April 9 at 12:01 am ET.

    “We are fully committed to protecting the premium cigar industry, which plays an essential role in supporting American small businesses and consumer interests,” Rob Burgess, of Connector Inc., a PCA Government Affairs representative said. “The PCA’s government relations team is working diligently, engaging actively with government officials and key stakeholders to address the implications of these tariffs. Our aim is to reduce financial pressures while ensuring the United States continues to lead in the premium cigar market, benefiting retailers, manufacturers, and consumers alike.”

    In a statement sent out to its members, Cigar Rights of America said that it is “carefully reviewing the scope and details of today’s policy shift to understand its potential impact on the premium cigar industry, including supply chains, pricing, and retail operations. As the federal government moves forward with implementation, we will continue to monitor developments closely and engage with relevant agencies. We are committed to keeping stakeholders informed and will provide timely updates as additional information and guidance become available.”

    The tariffs come the week before the American cigar industry’s most important sales week: the annual PCA Convention & Trade Show. Most manufacturers will offer retailers aggressive discounts to try to get larger orders, but it’s unclear whether some companies will modify their promotions to account for these tariffs.

  • Maldives Proposing Generational Ban on Tobacco

    Maldives Proposing Generational Ban on Tobacco

    During a podcast hosted by his office, Maldives President Dr. Mohamed Muizzu said that he is considering three proposals for a “generation ban” on tobacco, aiming to prevent younger generations from smoking. The proposals differed only in date, when people would be forever banned from smoking if born after January 1 in either 2000, 2004, or 2007.

    Explaining the rationale behind these options, President Muizzu stated that focusing on the 18 to 25 age group and below would make it easier to prevent addiction before it becomes deep-seated. He also highlighted the importance of consulting medical professionals and other stakeholders in formulating the policy and said that Health Minister Abdulla Nazim Ibrahim has been tasked with drafting a Cabinet paper on the proposed ban.