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  • Belgium Finds Violations in 80% of Shisha Bars

    Belgium Finds Violations in 80% of Shisha Bars

    Belgium’s  Ministry of Public Health announced yesterday that more than 80% of the nation’s shisha bars were found to have violations. Of the 131 shisha bars inspected, 106 violated the smoking ban regulation and 107 offered non-compliant tobacco products, according to L’Avenir.

    Smoking tobacco is allowed in shisha bars, but only outside or in designated smoking rooms with a smoke extraction system and restricted space, as mandated by the tobacco regulations. Non-compliant smoking rooms along with the sale of non-compliant tobacco products were reported to be the two main issues found, followed by improper tobacco labeling and illegal tobacco advertising.

  • U.K. Investigating Vaping Effects on Children

    U.K. Investigating Vaping Effects on Children

    Today, Britain’s government announced the launch of a decade-long study that will investigate the long-term effects of vaping on children as young as 8. The government has been cracking down on the rapid rise of vaping among children, with estimates showing a quarter of 11- to 15-year-olds have tried it.

    “The long-term health impacts of youth vaping are not fully known, and this comprehensive approach will provide the most detailed picture yet,” the health department said.

    The £62 million ($78.1 million) study will track 100,000 people aged 8-18 years for 10 years, collecting data on behavior and biology as well as health records, the statement said. The World Health Organization has urged governments to treat e-cigarettes similarly to tobacco, warning of their health impact and potential to drive nicotine addiction among non-smokers, especially children and young people.

  • Ferio Tego Available in Canada

    Ferio Tego Available in Canada

    Ferio Tego announced that its products will now be available in Canada, partnering with Kretek International Canada for distribution.    

    “We have enjoyed working closely with the outstanding team at Kretek Canada,” said Brendon Scott, co-owner of Ferio Tego. “Canada has a robust premium cigar market with tremendous retailers and passionate consumers, and we’re excited to offer our brands in this market.”

    The initial launch will feature its Elegancia, Summa, Timeless Sterling, and Timeless Prestige lines, all manufactured in the Dominican Republic. Additional company offerings from Nicaragua and Honduras will be available later in 2025.

    “The complexity, style, and origins of our blends make them quite distinctive,” said Michael Herklots, co-owner of Ferio Tego. “Our neighbors in the north have sought out our blends over the years, so we’re pleased to finally deliver them to their local tobacconists with the help of Kretek Canada.”   

    This is the third international expansion for the company over the last two years following successful releases in Asia and the United Arab Emirates.

  • Study: Youth More Vulnerable to Nicotine Addiction

    Study: Youth More Vulnerable to Nicotine Addiction

    People in their late teens and early 20s may be more susceptible to nicotine addiction than middle-aged adults, according to a new study in mice from researchers in the Penn State Department of Biobehavioral Health. The results provide evidence that the effects of drugs on the body—both medication and misused substances—change over the lifespan in ways that clinicians and researchers need to consider when developing and prescribing treatments, the researchers said.

    Doctoral student Carlos Novoa and his adviser, Thomas Gould, Jean Phillips Shibley Professor of Biobehavioral Health and head of the department, led the study. The researchers demonstrated that nicotine lowers the body temperature of young adult mice more quickly and reduces their movement more significantly than middle-aged mice. These results indicate how the effects of nicotine change as people age, according to the research team.

    “Sometimes, people think of development as something that occurs until we reach a certain age—like 18 or 25—and then stops,” Gould said. “But people continue to develop and change across their entire lifespan, and this affects how our bodies respond to medications and other chemicals, including nicotine. This research adds one piece to the puzzle of all the factors—age, biological sex, genetics, and many others—needed to create effective medical treatments and policies for all people.”

    The results of the study appear in Behavioral Pharmacology.

  • Washington’s Proposed Flavored Product Ban Takes Hit 

    Washington’s Proposed Flavored Product Ban Takes Hit 

    The Washington State House Committee on Consumer Protection & Business narrowly advanced House Bill 1203 by an 8-7 vote yesterday (Feb. 18), setting the stage for further legislative debate on a proposal to ban flavored tobacco, nicotine, and vapor products statewide.

    If passed, the bill would prohibit the sale, display, and advertisement of flavored tobacco, nicotine, and vapor products, including those marketed with terms like “cool,” “chill,” “ice,” or “fresh.” The bill also targets so-called “entertainment vapor products,” which include vape devices with interactive features such as music or video display capabilities. It also mandates a statewide public awareness campaign, led by the Department of Health, to educate the public on the risks of flavored nicotine products. Retailers would be required to post clear signage notifying customers of the ban, and violators would face stiff penalties enforced by the Liquor and Cannabis Board.

    While the bill moved forward, the debate in committee reflected deep divisions over the proposal, and even its main sponsor, Rep. Kristine Reeves, admitted the bill needs more work. Rep. Chris Corry voiced strong opposition, arguing that adults should have the right to make their own choices.

    “I think that this bill, while I understand the underlying merits…it’s a little paternalistic for us to say which products they can and can’t have,” Corry said. He also warned of unintended consequences, citing examples from other states where similar bans have fueled underground markets.

    The bill now moves to the House Ways and Means Committee for further consideration but is not expected to pass this year.

  • Altria CEO Talks Markets, FDA

    Altria CEO Talks Markets, FDA

    Altria Group, Inc., today (Feb. 19) participated in the Consumer Analyst Group of New York (CAGNY) conference in Orlando, Florida. Billy Gifford, Altria’s Chief Executive Officer, and Sal Mancuso, Altria’s Executive Vice President and Chief Financial Officer, presented and discussed, among many topics, how the company’s traditional tobacco business supports future strategies, long-term growth aspirations, and the general state of the industry.

    Gifford offered the following thoughts:

    On the evolution of the U.S. nicotine market:

    “The potential for tobacco harm reduction in the U.S. is significant, and we believe the opportunity remains in its early stages. Of the nearly 55 million nicotine consumers in the U.S., we estimate that only a third exclusively use a smoke-free format today. However, consumers are transitioning to smoke-free alternatives at a faster pace than ever before.”  

    “Nicotine consumer preferences are rapidly changing. Today’s nicotine consumers want smoke-free products that offer the potential of reduced harm and social friction, and are available in a variety of flavors. In fact, with more products in the market, coming closer to meeting those needs, nicotine volumes increased for the second consecutive year in 2024. And grew by a compounded annual growth rate of about 2% over the past 5 years.”

    “Smoke-free volume growth is now more than offsetting cigarette industry volume decline, demonstrating that consumers are seeking alternatives to cigarettes rather than leaving the nicotine space entirely. The growing adoption of smoke-free products is encouraging and directly aligned with our vision and the growth aspirations of our smoke-free businesses.”

    “Research supports that no single product format or flavor will satisfy all nicotine consumers. To advance harm reduction our strategy is to deliver a portfolio of products across today’s most promising innovative smoke-free platforms: oral nicotine pouches, heated tobacco, and e-vapor.”  

    The oral nicotine market:

    “The oral tobacco category continues to grow, led by nicotine pouches. We estimate that industry volume grew 8.5% last year and included nearly 8 million consumers. In the last 3 years, nicotine pouch consumers have more than tripled and now comprise 3.5 million of those 8 million consumers.”

    “Since 2019, the oral tobacco products segment saw an increase of 2.4% CAGR.”

    Altria’s oral nicotine pouch, On!

    “We’re encouraged by On!’s ability to retain loyal purchasers and expand the consumer base at a higher retail price. Consumer loyalty for On! continues to build. At the end of last year, 800,000 consumers regularly purchased On!, an increase of more than 40% versus the prior year.”

    Smokers switching from combustibles:

    “We believe the science is compelling. Evidence from a large consumer-use study among adult smokers not planning to quit showed that nearly 75% of those who used Ploom had meaningful reductions in cigarette consumption, with nearly one-third completely switching from cigarettes.  

    “We observed that menthol-flavored sticks had a higher switch rate relative to tobacco-flavored sticks. Consumers who switched from combustible to Ploom significantly reduced their exposure to harmful chemicals. Given the low risk of underage use and the strong benefits of switching for adults, we believe Ploom presents a compelling case for authorization by the FDA and we remain optimistic about its potential in the U.S.”

    E-vapor:

    “Our data show consumers transition from cigarettes to e-vapor at over three times the rate of transition from other smoke-free categories. This is an encouraging sign and consistent with our belief that most smokers are looking for satisfying, inhalable alternatives to cigarettes.”

    “Today’s vapors are seeking products that are flavored, come in a convenient form, and offer high-value for a reasonable price.”

    The illicit market:

    “In the absence of FDA authorization of flavored product choices, consumers have turned to the illicit flavors disposable market. We estimate that the e-vapor category grew by about 30% in 2024, driven entirely by illicit products that now represent more than 50% of the category. As we’ve said repeatedly, illicit product growth is concerning. It’s the primary source of underage usage, and with no control of how products are marketed or sold, it is attracting unintended audiences to the nicotine category. In fact, 40% of new entrants to the category in 2024 we not prior smokers. At the same time, the category’s growth is proof that a smoke-free future is possible. Most consumers and society expect a marketplace consisting of an array of FDA-authorized products led by responsible players throughout the value chain. We need a regulatory system that fosters innovation, not one that stifles and slows innovation to the advantage of the illicit market.”

    Altria’s Vision program:

    Achieving our Vision requires four critical elements:

    1. Underage tobacco use continues to decline or remain low
    2. Consumers require accurate information about nicotine
    3. The entire industry operating within a fully enforced, science-based regulatory environment
    4. A variety of satisfying, FDA-authorized products available for adult consumers

    FDA regulation and reported staffing cuts:

    “We need more authorization. The adult cigarette consumer, about half are ready to move to smoke-free if they can find a product that they enjoy and find satisfying. Only 2% of the products have authorization.”

    “We have a good working relationship with the FDA, but as you know they’ve been slow. We hope with a reduction in headcount they will look at their process and make them more efficient. As you see in e-vapor, the consumer is looking for products. They want to go to smoke-free alternatives and we think that’s important for harm reduction to succeed in the U.S. We need more authorizations and at the same time, we need enforcement.”

    “It may slow it down temporarily but at the same time, we would hope the increased efficiency and processes would improve.”

    Click here to view the entire presentation.

    For more than 50 years, CAGNY has been connecting investors, management teams, and the media dedicated to the consumer industry. It asserts to be “the largest not-for-profit of its kind” and hosts various events throughout the year, highlighted by the CAGNY conference in Boca Raton, Florida.

  • Trump Administration’s Cuts Reach FDA Tobacco Product Employees

    Trump Administration’s Cuts Reach FDA Tobacco Product Employees

    The Trump administration’s attempts to reduce the size of the federal workforce have reportedly extended to the Food and Drug Administration (FDA) this weekend, as recently hired employees who review the safety of food ingredients, medical devices, and other products were fired.

    On Friday, the U.S. Department of Health and Human Services announced plans to fire 5,200 probationary employees across its agencies, which include the FDA, National Institutes of Health, and the Centers for Disease Control and Prevention. Probationary employees across the FDA received notices Saturday evening that their jobs were being eliminated, according to three FDA staffers who spoke to The Associated Press on condition of anonymity.

    The total number of positions eliminated is still not clear, but the firings appeared to focus on employees in the agency’s centers for food, medical devices, and tobacco products — which includes oversight of electronic cigarettes.

    The FDA employs nearly 20,000 people but has been strained since a wave of departures during the COVID-19 pandemic, with a reported 2,000 uninspected drug facilities that haven’t been visited since before the pandemic. It has also been criticized for not moving faster to catch recent problems involving infant formula, baby food, and eyedrops. A former FDA official said cutting recent hires could backfire by eliminating staffers who tend to be younger and have more up-to-date technical skills, whereas the FDA’s current workforce skews toward older workers who have spent one or two decades at the agency.

    “You want to bring in new blood,” said Peter Pitts, a former FDA associate commissioner under President George W. Bush. “You want people with new ideas, greater enthusiasm, and the latest thinking in terms of technology.”

  • 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.”