Blog - Tobacco Reporter

Retailers Required to Display Tobacco Warning Posters

Tobacco vendors in Thailand must display posters highlighting the risks of smoking, following the enactment of a new rule on Aug. 21, reports the Pattaya Mail.

The 7 cm by 21 cm posters must be visible at all sales points during operating hours, the Department of Disease Control (DCC) announced. Violators risk a fine of THB5,000 ($146).

The posters, provided by the Public Health Ministry, seek to reduce the number of new smokers, particularly among minors. Vendors can obtain the materials from Excise Department offices nationwide or download them from the DCC website.

August 23, 2024

Legislators to Vote on Brazilian Vape Ban

Brazil’s Senate’s Economic Committee was scheduled to vote on bill this week that would legalize e-cigarettes in Brazil, reports Prensa Latina.

South America’s biggest country currently prohibits the manufacture, import, marketing, distribution, storage, transportation and advertising of vapes.

The vote on the text has been repeatedly postponed due to a lack of consensus among legislators.

Despite the ban, which has been in place since 2009, e-cigarettes are reportedly widely available in Brazil.

August 23, 2024

Top Court Urged to Review Graphic Labels

Cigarette manufacturers have asked the U.S. Supreme Court to review a lower court ruling affirming a Food and Drug Administration rule mandating graphic health warnings on cigarette packaging and advertisements, reports Law360.

In March, the U.S. 5th Circuit Court of Appeals rejected industry arguments that FDA’s plans violates companies’ free speech rights and that the requirement overpowers branding and messaging on packages and advertisements due to the size of the images and lettering.

Earlier, a district court had found that the new labels were provocative, value-laden messages that burdened tobacco companies’ free speech, but the Fifth Circuit disagreed, concluding that the warnings are undisputedly factual and the images “are no different from those a medical student might see in a textbook.”

On Aug. 19, R.J. Reynolds Tobacco Co., ITG Brands and other tobacco companies urged the nation’s top court to review the appeals court’s decision, arguing that the proposed warnings are “massive, provocative and misleading.”

They also noted that the Fifth Circuit’s finding are at odds with other court rulings that found “far smaller warnings were unduly burdensome.”

“The Fifth Circuit’s opinion, if permitted to stand, would authorize the government to require similar massive and grotesque admonitions on virtually any disfavored consumer product—from fast food, candy and wine to plastic straws, firearms and gas stoves,” the petition said.

The FDA released the final rule in March 2020 requiring new graphic warnings for cigarettes that feature some of the lesser-known but still serious health risks of smoking, such as diabetes, on the top half of the front and back of cigarette packages and at least 20 percent of the area on the top of cigarette advertisements.

August 22, 2024

Tax Collections Up Even as Smoking Drops

Sri Lanka managed to increase tobacco tax collections while reducing tobacco consumption over the past decade, reports Xinhua.

According to State Minister of Finance Ranjith Siyambalapitiya, tobacco consumption in Sri Lanka declined by 41.9 percent between 2015 and 2023. During the same period, the state’s revenue increased by 36 percent.

In 2015, Sri Lankans smoked 3.96 billion cigarettes, whereas by 2023, this figure had dropped to 2.3 billion cigarettes, Siyambalapitiya said.

Despite this reduction, the state’s revenue from cigarette taxes rose from LKR81.15 billion ($262 million) in 2015 to LKR110 billion in 2023, the state minister said.

In the past two years alone, cigarette consumption decreased by 17 percent, while tax revenue increased by 6 percent.

August 22, 2024

Moldova Strengthens Tobacco Laws

Moldova is strengthening its tobacco control law, reports IPN Press Agency. Among other provisions, the new legislation will extend public smoking restrictions to e-cigarettes, further restrict audiovisual promotions and require heated tobacco product to carry graphic health warnings.

The bill prohibits doctors from accepting contributions from the tobacco industry and promoting any tobacco or related products as alternatives to smoking.

Minister of Health Ala Nemerenco said the bill is designed to protect the population, especially young people, from the harm of tobacco.

The legislative changes will take effect gradually, starting three months from the date of publishing in the Official Gazette and until 2027, in the case of the new product and packaging labeling requirements.

August 22, 2024

Revenues and Income Down at VPR

VPR Brands reported revenues of $1.77 million for the second quarter of 2024, down from $1.9 million in the comparable 2023 quarter. Gross profit was $451,469, compared with $1.1 million in the second quarter of 2023.

“While the second quarter presented some challenges, we are encouraged by the solid growth in our product sales and the positive trajectory of our business,” said VPR Brands CEO Kevin Frija.

“Our ability to generate consistent revenue, coupled with our strategic investments, positions us well for future success. We are committed to driving innovation and expanding our market presence, and we believe that our focus on quality and customer satisfaction will continue to deliver value to our shareholders.”

Looking ahead, VPR Brands says it remains focused on expanding its product lines and enhancing its market footprint. “With a solid balance sheet and a dedicated team, the company is well-positioned to capitalize on emerging opportunities in the electronic cigarette and vaporizer markets,” the company wrote in a press note.

August 22, 2024

Japan Tobacco Acquires Vector Group

The JT Group will acquire Vector Group (VGR), the fourth largest tobacco company in the United States.

Based on the purchase agreement, the JT Group will conduct a tender offer for all outstanding shares of VGR through Vapor Merger Sub, an entity established specifically for this acquisition.

The JT Group intends to acquire 100 percent of VGR’s outstanding fully diluted share capital for a per share price of $15, representing a total equity value transaction estimated at around $2.4 billion. The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following closing, VGR will be a wholly owned consolidated subsidiary of JT and be delisted from the New York Stock Exchange.

“Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

“This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organization. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands’ legacy of value-focused, quality products and looks forward to continuing to meet customers’ evolving needs.”

“We are excited by this acquisition which, in line with our tobacco business strategy, will contribute to the acceleration of the ROI [return on investment] in our combustible business and expand JT Group’s global footprint,” said Masamichi Terabatake, JT Group CEO and president of the company’s tobacco business, in a statement.

“By adding this sizeable and historically profitable business to our company, we are confident the transaction will contribute to sustainable growth and increase JT Group’s corporate value.”

“This transaction will significantly increase our U.S. presence, boosting our market share from 2.3 percent to approximately 8 percent and giving us full ownership of two of the top-10 U.S. cigarette brands,” said Eddy Pirard, president and CEO of JT International.

“The transaction will enable us to also strengthen our distribution network and create mid- to long-term strategic opportunities to boost our competitiveness in this major tobacco market.”

August 21, 2024

Burbidge Joins Global Action to End Smoking

Global Action to End Smoking appointed Cole Burbidge as a new director of programs. With a distinguished career in advancing public health in underserved communities, Burbidge brings a wealth of experience that will support the organization’s grantmaking work, according to the organization.

Burbidge is a physician by training and a strong advocate for patient-centered care, understanding firsthand the gaps between idealized healthcare models and the reality faced by patients. His career has been dedicated to improving health outcomes for recreational substance users and high-risk patients.

At Global Action, Burbidge’s main roles will be developing requests for grant proposals and evaluating prospective research projects. He will also be supporting the communications team as it disseminates relevant information to people who smoke. He will report to Erik Augustson, vice president of programs.

“I’m excited to continue my work in improving public health through my new role at Global Action,” said Burbidge in a statement. “I am deeply passionate about meeting individuals where they are to make sure that a healthier lifestyle is effective and accessible.”

Burbidge’s experience spans consulting roles with healthcare organizations, pharmaceutical companies and risk-reduction advocacy groups as well as leadership positions in industry, where he oversaw teams in scientific and regulatory affairs.

“Dr. Cole Burbidge is a strong addition to our team at Global Action,” said Augustson. “His expertise and passion for patient-centered care will be invaluable as we continue our mission to end smoking. Dr. Burbidge’s focus on innovative, data-driven solutions aligns perfectly with our goals, and we look forward to the impact he will have on our programs.”

August 21, 2024

Smoore Reports Half-Year Results

Smoore International Holdings reported revenue of RMB5.04 billion ($705.4 million) for the six months that ended June 30, down 1.7 percent from the comparable 2023 period. Gross profit rose 3.2 percent to RMB1.91 billion while pretax profit was up by 1.9 percent to RMB811.56 million.

The group’s branded business grew by 71.9 percent to RMB1.12 billion in the first half of 2024, boosted by the company’s digital marketing operations, which enabled the company to respond rapidly to consumer preferences. The group’s Vaporesso brand continued to increase its market share in the open system product segment and has become the leading brand in this category.

Smoore’s corporate client sales, meanwhile, declined by 12.3 percent to RMB3.92 billion in the first six months of 2024, reflecting different sales performances in different markets around the world.

In the U.S., Smoore faced competition from noncompliant vaping products. However, the company said it was encouraged by clarifications of the regulatory framework and the strengthening of enforcement in that market, pointing to creation of a federal multi-agency task force to combat the illicit market, among other developments.

Increasing regulation of the vaping market in Europe, meanwhile, has impacted demand for traditional disposable products, causing the group’s revenue from single-use vapes to decline by approximately 18.9 percent year-on-year to approximately RMB1.22 billion.

Smoore said it has successfully launched a number of new closed system products in the international market in the first half of the year, and it is confident that this will translate into stronger orders in the second half of the year.

In China, where the group’s corporate client-oriented business centers on closed system electronic vaping products, Smoore reported sales revenue of RMB87.78 million, representing an increase of approximately 41.4 percent as compared to the same period last year.

August 20, 2024

Pyxus Appoints Chief Legal Officer

Pyxus International has appointed David Singer as senior vice president, chief legal officer and secretary. Singer will report to Pyxus President and CEO Pieter Sikkel and join the company’s executive management team.

Singer, who served on Pyxus’ legal team from August 2018 to May 2022, rejoins the company with nearly 20 years of experience, most recently serving as chief administrative officer and general counsel for Kymera International, a global specialty materials company. His previous roles include senior in-house counsel positions and experience as a litigation, corporate and regulatory attorney.

“We are pleased to welcome David back to Pyxus in this new capacity,” said Sikkel in a statement. “Given our diverse global footprint and the regulatory complexities of our operations, David’s legal expertise, strategic insight and deep understanding of our business are invaluable. His leadership will help us uphold a culture of responsibility and compliance as we pursue our strategic goals and drive stakeholder value.”

Singer succeeds Will O’Quinn, who has been senior vice president, chief legal officer and secretary since 2011. O’Quinn will remain a key member of the company’s leadership team, assuming the position of senior vice president of special projects, and will continue reporting to Sikkel.

“We thank Will for his contributions to grow the company’s legal function to what it is today and appreciate his enthusiasm to leverage his legal expertise and company-specific business acumen to deliver success in his new role while positioning Pyxus for the future,” stated Sikkel.

August 20, 2024