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  • Potential Compensation Boon for BAT CEO

    Potential Compensation Boon for BAT CEO

    A newly proposed incentive scheme by British American Tobacco could make its chief executive, Tadeu Marroco, one of the highest-paid executives in the world. According to the Financial Times, “The chief executive of British American Tobacco could receive up to £18.2mn in a new three-year pay deal, making him one of the highest earning FTSE bosses as big UK companies move to narrow the pay gap with US rivals.” The compensation package would be based on BAT hitting certain targets — such as increasing the profitability of cigarette alternatives — and if its share price rose 50% over that time span.

    Marroco, who has been chief executive since May 2023, will be guaranteed a minimum of £1.8 million in salary, pension, and benefits annually the company said. He received £6 million in total last year.

    “The increasingly competitive global market for senior talent has resulted in upward pressure on pay . . . With many US-based candidates, we observe that pay disparities are particularly evident with incentive opportunities, which tend to be far above typical UK levels,” BAT said in its annual report.

    It added that one-third of its senior hires over the past three years had been from the U.S. and that it had “an elevated vacancy rate across senior management levels, with lengthening times to hire”.

    Shareholders will vote on the new pay deal, which was first reported in The Sunday Times, at the company’s annual general meeting in April.

  • Hong Kong Sees Surge in Visitors Carrying Illicit Cigarettes

    Hong Kong Sees Surge in Visitors Carrying Illicit Cigarettes

    Cigarette smuggling occurrences in Hong Kong surged 80% last year, accounting for 68% of the total number of cases handled by Hong Kong Customs, officials said. At a news conference today, the Customs and Excise Department said more than 21,000 of the 31,000 total cases they handled in 2024 involved illicit cigarettes.

    Chan Tsz-tat, who became the city’s Commissioner of Customs and Excise in December, attributed the surge in cigarette smuggling cases to a 94% increase of inbound travelers found with cigarettes that exceeded the 19-stick duty-free limit. Chan said the underlying reason for the increase is that Hong Kong increased the tobacco duty from HK$1.9 (24 US cents) to HK$3.3 per cigarette over the past two years.

    Customs seized about 600 million sticks of illicit cigarettes, which is actually a decrease of 6% compared with the previous year as smuggling syndicates are lowering the number of cigarettes being smuggled at one time and diversifying smuggling channels to minimize losses. Customs officials made 40 large-scale cigarette confiscations, during which it seized 328 million cigarettes. 

  • Tobacco Harvest Inaugurated in Rio Grande do Sul

    Tobacco Harvest Inaugurated in Rio Grande do Sul

    The tobacco harvest in Rio Grande do Sul has officially been inaugurated, according to SindiTabaco, the Interstate Tobacco Industry Union. In 2024, Brazilian tobacco was shipped to 113 countries and brought in $2.977 billion in revenue from 455,000 tons.

    Results have remained within the projected numbers from the Deloitte Marketing Consultancy in terms of volume (-15% and -10.1%), but revenue from foreign sales was adversely affected by global logistics issues, according to SindiTabaco President Valmor Thesing.

    “Despite all the climate-related problems faced in the 2023/24 growing season, first the prolonged drought and then the flood that occurred in Rio Grand do Sul, we managed to achieve a very positive performance,” said Thesing. “We did not achieve the $3 billion estimated by our research teams because of a global logistic problem. The crop was produced, processed, and commercialized, but we did not manage to ship it abroad before the end of 2024.”

  • Study Links ADHD and Nicotine Use

    Study Links ADHD and Nicotine Use

    A recent JAMA Network Open study established a “robust association between ADHD symptoms and newer forms of nicotine and tobacco use. This finding emphasizes the importance of early ADHD diagnosis and effective management strategies to reduce the risk of future nicotine and tobacco use among U.S. youths.”

    Previous studies established a link between ADHD and tobacco use, however, it remains unclear how the widespread availability of electronic nicotine delivery systems like e-cigarettes may have exacerbated this issue. In 2018, e-cigarette use surpassed cigarette smoking and has continued to increase to become the second most prevalent substance use behavior.

    ADHD, which is characterized by functional impairment, hyperactivity, and/or inattention, is one of the most common psychiatric disorders among children and adolescents in the United States. In fact, current estimates indicate that one in nine children and adolescents in the U.S. received an ADHD diagnosis in their lifetime.

  • Pyxus CFO Resigns

    Pyxus CFO Resigns

    Flavia Landsberg, Pyxus International’s executive vice president and chief financial officer, has resigned effective Feb. 28, 2025. Landsberg, who joined Pyxus in 2021, has elected to pursue an external career opportunity.

    Following Landsberg’s notice of resignation, the company’s board of directors appointed Dustin Styons, Pyxus’ executive vice president, business strategy and sales, as interim CFO and will commence a formal search for Landsberg’s successor.

    “We thank Flavia for her contributions during her tenure, which are evidenced by the significant improvements in all measures of our operating performance and reduction of long-term debt,” said Pyxus President and CEO Pieter Sikkel. “We wish Flavia all the best in her new role as we work to build on the financial strategy she helped put in place.”

  • JTI Ranks No. 2 Among Philippines Top Employers

    JTI Ranks No. 2 Among Philippines Top Employers

    The Top Employers Institute, the global authority in recognizing outstanding people practices, ranked JTI Philippines second on its “Top Employers in the Philippines” list. It is the fourth straight year JTI was ranked on the list, with this being its highest-ever ranking.

    “To be awarded No. 2 Top Employer in the Philippines stands as a testament to how JTI puts its people at the heart of everything we do,” said Ari Wisnubroto, people and culture director at JTI Philippines. “Aside from continuing to improve our work environment and caring for their wellbeing, we pride ourselves on our focus on diversity, equity, and inclusion.

     “In March, we will be celebrating our 25th year in the Philippines and we do this as the fastest-growing tobacco company in the country. We owe these two milestones to our hardworking employees who live out the culture and values of JTI. The Top Employer recognition is a celebration of our people and a pledge to continue cultivating a work environment that champions employees’ wellbeing, growth, and inclusion for many more years to come.”

    Included among JTI’s progressive programs are 20 fully-paid weeks of family leave for parents welcoming a child regardless of their gender or way they become parents; the Drive Ahead initiative offers free driving lessons to women without driving experience who want to pursue a field-based career in JTI; and the Bright Start program sponsors individuals from disadvantaged communities with the opportunity to earn a college degree while earning a salary and developing careers at JTI.

    JTI is also one of only 17 companies to be recognized this year as Global Top Employer. It is their 11th consecutive year to be certified by the Top Employers Institute for commendable people policies and practices worldwide.

  • JTI Sees Shift to Cheaper Cigarettes Continuing

    JTI Sees Shift to Cheaper Cigarettes Continuing

    To combat decreasing volumes, many cigarette companies are forced to increase prices to keep the needed revenue margins. That, combined with continuously rising federal and state taxes, has made buying a pack of cigarettes in the United States quite expensive. As a result, many smokers are leaving traditional premium name brands and trading down to the value and super-vale segment of the market.

    Japan Tobacco International’s finance chief Vassilis Vovos said he expects pricier brands to continue losing ground even as affordability improves, and that the shift toward cheaper cigarette brands in the U.S. will top 42% of the market by 2027.

    JTI completed the acquisition of U.S. tobacco company Vector Group last year, which pushed its share of the super-value segment to 40% by the fourth quarter of 2024.

    “This is a hard trend and we see it continuing over time,” Vovos said, adding steep price increases will continue to push consumers to trade down, a trend visible in many markets where big price gaps emerge.

    Industry giants such as Altria and BAT hope the trend away from premium brands is temporary and will recede as economic pressures ease. BAT, which does not produce a product for either of the value markets, saw its U.S. volume fall 10.1% last year.

  • Zimbabwe Tobacco Market Introduces Biometric System

    Zimbabwe Tobacco Market Introduces Biometric System

    When Zimbabwe’s tobacco auction floors open March 5, the Tobacco Industry and Marketing Board (TIMB) announced it will implement measures to ensure only legitimate farmers participate in the market and to prevent side marketing. Chelesani Tsarwe, public affairs officer for the TIMB, said a biometric grower management system will be used to track the country’s largest agricultural export.

    “The new system introduces biometric data capture, linking each farmer’s unique grower number to their fingerprints, as well as the GPS coordinates of their households and farms,” Tsarwe said.

    She added that the information system will be conducted at designated key selling points, and that the country is prioritizing the value-addition of the tobacco leaf locally to boost revenue and create jobs.

    Grown mainly on small-scale farms, Zimbabwe harvested more than 240 million kilograms of tobacco last year, generating more than $1.4 billion in revenue.

  • France Bans Disposable E-Cigarettes

    France Bans Disposable E-Cigarettes

    With a final vote in the Senate’s upper house, the French parliament today banned single-use electronic cigarettes, accusing them of being gateways to tobacco addiction for teenagers and harmful to the environment. France is the second EU country to enact such a ban, joining Belgium which did it in December.

    “It is a great victory in a two-pronged battle that we were fighting: an environmental battle against the polluting lithium batteries in these ‘puffs’, and a health battle for our schoolchildren,” lawmaker Francesca Pasquini, the author of the bill, said.

    “A fine piece of cross-party work!” lawmaker Michel Lauzzana said on X. “We are now awaiting the promulgation of this law and its application throughout the country.”

    The legislation was earlier approved by the National Assembly lower house.

  • JT Reports 9.7% Profit Increase

    JT Reports 9.7% Profit Increase

    Japan Tobacco today reported a 9.7% increase in annual adjusted operating profit from its tobacco business, thanks to selling more higher-priced packs of tobacco and its acquisition of U.S. tobacco company Vector Group.

    Even as volumes declined by up to 2% as smoking rates fell in some markets, JT looked to grow revenue from alternative products to offset the losses. Notably, JT’s adjusted operating profit jumped 56.1% in the last quarter at constant currency, demonstrating adept market adaptation. The company, which makes Benson & Hedges and Winston cigarettes, said it expects tobacco-related revenues and operating profit to rise by a further 6.9% and 8.1% respectively in 2025.

    The tobacco division core revenues grew 14.5% at constant currency and volumes were up 3% in the quarter. Annually, they rose 9.1% and 2.4%, respectively.