TobaccoReporter logo

Blog

  • BAT: Illicit Vapes Making Market “Unsustainable”

    BAT: Illicit Vapes Making Market “Unsustainable”

    British American Tobacco’s growth in smoke-free products was deemed to be dragged down by the prevalence of illicit vapes in the US market, making for disappointing numbers in 2025. The company reported that vape sales in the US fell 0.8% last year, with price increases failing to make up for a slump in volumes, a sign that competition from unauthorized manufacturers is eroding its market share.

    Cigarette volumes in the US plunged 10.1%, BAT said, blaming a downturn in consumer spending and an increase in the discount category, where the company does not operate. The company is forecasting growth in adjusted operating profit of 1.5% to 2.5% for 2025.

    “We all understand the situation is unsustainable in the US on the vapor side,” said Chief Executive Officer Tadeu Marroco on a call with reporters, adding that the illicit vapes mean that users have no control over the specifics of what they are consuming. “Hopefully the new administration will bring a new way to think about enforcement.”

  • Study: Controlling Mildew, Improving Tobacco Storage

    Study: Controlling Mildew, Improving Tobacco Storage

    Tobacco mildew is a common fungal disease of great economic importance as it causes leaf rot during tobacco storage, seriously impacting the yield and quality of tobacco. Scientists from the College of Tobacco Science at Henan Agricultural University in China led a study that investigated the inhibitory effect of endophytic bacteria on fungal pathogens as it pertains to tobacco mildew biocontrol and identified bacterial biocontrol resources for controlling tobacco mildew and improving tobacco quality.

    In the study, three strains of dominant tobacco mildew pathogens were isolated from the surface of diseased tobacco leaves and used as pathogens to select five antagonistic bacterial strains with good inhibitory effects against tobacco mildew disease.

    The results revealed that the antagonistic mechanism of ZH-2 against pathogens was the production of cell wall hydrolases. Fermentation results showed that strain ZH-2 affected the chemical composition and improved the volatile flavor content and quality of tobacco leaves. Therefore, strain ZH-2 can be used as a potential biocontrol agent for the control of tobacco mildew disease and the improvement of tobacco quality during storage.

  • N.Y. Lawmakers Want to Ban Zyn for its Flavors

    N.Y. Lawmakers Want to Ban Zyn for its Flavors

    New York lawmakers have introduced a bill in the legislature that would ban flavored oral nicotine pouches such as Zyn, which recently received FDA approval. The pouches do not contain tobacco and are the fastest-growing product on the U.S. tobacco market, but lawmakers are comparing their flavors to flavored vape cartridges that were banned in the state in 2020 because they are attractive to children.

    “You always have to keep on top of this industry,” said Assemblywoman Linda Rosenthal, who is sponsoring the bill. “Because as we extinguish some of the availability to youth in particular, the industry comes up with more ways to entice people to be addicted to nicotine and their products.”

    The legislation — which is sponsored in the Senate by state Sen. Brad Hoylman-Sigal — asserts that minors could turn to nicotine pouches as flavored vapes become harder to find under New York’s ban.

    Zyn is manufactured by Swedish Match, a subsidiary of Philip Morris International, which maintains that Zyn is intended and marketed only for those 21 and older, and that the vast majority of Zyn’s clientele are not new nicotine users, but adults switching to a safer delivery method.

    “Almost everyone has come from another product,” Brian Erkkila, Swedish Match’s director of regulatory science, said. “That’s who the product is designed for. If you think about the flavors our product comes in, they come in flavors that have been in smokeless tobacco products like moist snuff and dip, for decades. These aren’t new flavors. They’ve been around for a long time.”

    Alan Mathios, a professor at Cornell University who studies the economics of tobacco regulation, called the potential ban shortsighted and said it could lead to the proliferation of illicit products, make the market more difficult to regulate, and have the opposite result in terms of keeping them away from underage users.

    “A lot of menthol smokers really like their menthol,” Mathios said. “If they don’t have an alternative menthol product, they’re unlikely to move away from cigarettes. So even if you do see some youth movement into menthol-flavored pouches, you have to weigh that against the role that menthol-flavored products play in helping adults switch.”

  • Markets Stand Behind Tobacco

    Markets Stand Behind Tobacco

    Seeking Alpha, a crowd-sourced content service that publishes news on financial markets, said the prices of tobacco and smoking products in the U.S. rose 6.8% in January compared to a year ago on an unadjusted basis. Overall, core inflation was up 3.3% year-over-year during the month, which was slightly higher than the pace in December and above the expectations of analysts.

    On a month-to-month comparison, tobacco and smoking products were up 0.4% in January to mark the fifth month in a row of higher pricing for the broad category.

    Analysts have not moved off their position that Philip Morris International, Altria, Imperial Brands, and British American Tobacco could all see benefits under the Trump Administration.

    Seeking Alpha said, “UBS sees the Republican control of Congress as a slight positive for tobacco stocks. Analyst Faham Baig reminded investors that Republican control has historically been seen as a positive for U.S. tobacco, due to the likelihood of reduced regulation. On that note, the Office of Information and Regulatory Affairs at the OMB withdrew in January the menthol cigarette ban and the U.S. has pulled back from the World Health Organization.”

  • JT Again Recognized for Corporate Sustainability

    JT Again Recognized for Corporate Sustainability

    For the sixth year in a row, Japan Tobacco Inc. (JT) has been recognized for its leadership in corporate sustainability by the global environmental non-profit organization CDP. With nearly 25,000 companies participating in the 2024 environmental disclosure program, JT was one of the select few to make the “A list,” based on the way it approached climate change.

    As part of its materiality and sustainability core, JT says it believes that as nature, society, and people’s lives are intertwined, sustaining our ways of living and the activities of corporate entities will depend on the sustainability of the environment and societies in which we live. “On this basis, we have looked at our past environmental initiatives. We did so from the perspective of the ecosystem, considering the aspect of biodiversity as well as the impact that our business may have on the ecosystem.”

    “We are honored that the JT Group has been recognized on CDP’s A List for the sixth consecutive year,” said Senior Vice President and Chief Sustainability Officer Hisato Imokawa. “This inclusion reflects our ongoing efforts to preserve ecosystems and enhance our transparency in sharing information. To fulfill the JT Group purpose of “Fulfilling Moments, Enriching Life,” we will continue to pursue our vision of sustainability and maintain the trust of our stakeholders by enhancing our efforts that are distinctive of the JT Group in collaboration with our suppliers.”

    CDP is a global non-profit that “runs the world’s only independent environmental disclosure system for companies, capital markets, cities, states, and regions to manage their environmental impacts.”

  • Fast-Dissolving Nicotine Strip Makes First Cut for Grant

    Fast-Dissolving Nicotine Strip Makes First Cut for Grant

    CTT Pharmaceutical Holdings said it has advanced past the initial round in its application for a National Science Foundation (NSF) grant for its patented fast-dissolving nicotine strips. The company is now among a few thousand remaining applicants from an initial pool of over 12,000 applicants. Acceptance into the program would give CTT government backing and allow for extensive research and testing to help in the development of its technology.

    “To make it past the first round of applicants is a huge accomplishment by itself and shows that the NSF sees potential value for our technology within the tobacco industry,” said Ryan Khouri, CEO of CTT Pharma. “Currently there are no fast-dissolving, low-dose nicotine strips on the market, as most oral products stay in the mouth for an excessive amount of time.”

    The company’s technology aims to address a significant public health issue, as classified by WHO. CTT said it expects to receive a response by late April.

  • Report: BAT Kenya Has $28 Million Tax Discrepancy

    Report: BAT Kenya Has $28 Million Tax Discrepancy

    Members of the Tobacco Control Research Group (TCRG) and The Investigative Desk claim to have found a $93 million discrepancy in revenue reported by British American Tobacco Kenya for 2017 and 2018, which would result in $28 million in missing tax revenue for the country. According to the report published by the University of Bath’s TCRG, government documents and data on cigarette consumption and prices found numerous contradictions, including “millions of cigarette packs unaccounted for, leading to [missing] revenues and therefore tax that would normally be expected.”

    “In the absence of a convincing explanation, this looks like tax avoidance and potentially evasion,” Leopoldo Parada, Reader in Tax Law at King’s College London, said.

    “BAT Kenya firmly rejects all the allegations made regarding the discrepancy between its published financial disclosures and data,” a spokesperson for the company said in a statement. “The company pays all taxes in line with applicable laws.”

    The report authors have asked the Kenya Revenue Authority (KRA) if they will investigate, but have not yet received a response.

  • Tanzanian Tobacco Growing

    Tanzanian Tobacco Growing

    Tobacco is Tanzania’s top export for the second straight year, totaling $517.1 million in 2024, up from its previous record of $340.4 million in 2023, according to the Bank of Tanzania. Tobacco passed traditional “king” crops cashew nuts and tobacco two years ago and now accounts for more than a third of the country’s agricultural exports, as Tanzania becomes Africa’s second-largest tobacco producer behind only Zimbabwe.

    With heavy support from the government — providing significant subsidies, working with leaf companies to purchase the crop, and investing in tobacco processing infrastructure — Tanzania’s market is expected to continue its growth, projected to produce $667.9 million in 2025 and continue growing at an annual rate of 3.44% until it reaches $764.8 million in 2029.

    Agriculture Minister Hussein Bashe has emphasized the importance of fair practices within the local tobacco industry. The government has initiated crackdowns on exploitative practices by cooperative leaders to ensure that farmers receive equitable compensation for their produce. There is also a $300 million cigarette factory being constructed in Morogoro to enhance the nation’s processing capacity and ensure the farmers always have a viable market.

  • Maldives Allows Police to Destroy Vapes

    Maldives Allows Police to Destroy Vapes

    Tobacco Control General Regulations published today in Maldives grant police the authority to seize and destroy vaping devices prohibited under the Tobacco Control Act. The import and use of vapes was banned in December, and while the existing law allows for fines on those who possess or sell vapes, it previously did not grant police the power to confiscate already imported devices. Under the new regulations, police can now confiscate vaping devices and related items found in possession or use.

    Individuals caught with a vape device will face a fine of MVR 2,000 ($130), while those who refuse to surrender the items to the police may be fined MVR 50,000 ($3,250). Distributing vapes for free results in a fine of MVR 10,000 ($650) and the sale of vapes incurs a fine of MVR 20,000 ($1,300). Additionally, selling vapes to individuals under 21 results in a fine of MVR 50,000.

  • Northern Ireland Moves Toward Generational Ban

    Northern Ireland Moves Toward Generational Ban

    Yesterday (February 10), Northern Ireland moved a step closer to a generational tobacco ban with Members of the Legislative Assembly voting in favor of the Tobacco and Vapes Bill. The bill would progressively raise the age to buy tobacco, meaning that people born after December 31, 2008 would never be able to purchase it legally.

    The bill is currently going through the Westminster legislative process, and as health is a devolved matter, each devolved legislature votes on whether they consent to pass the bill in their nation through a Legislative Consent Motion (LCM). The bill was first introduced in May 2024, however, because of the general election, had to be introduced by the new UK Government, and needed a second LCM to take place. 

    “To achieve a smoke-free UK, we also need to start the stop of smoking, ensuring that people who currently smoke have access to the support they need to quit,” Smokefree UK said in a statement. “We’ll continue to fight for this vital legislation to be implemented in Northern Ireland and across the rest of the UK and together, we can help end cancers caused by smoking.”