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  • Zimbabwe Leaf Sales Reach $721 Million

    Zimbabwe Leaf Sales Reach $721 Million

    Photo: Taco Tuinstra

    So far this marketing season, Zimbabwe’s tobacco farmers have brought in $721 million from the tobacco auction and contract floors, down from $832 million in the same period last year, reports The Herald.

    This year, 208 million kilograms have been delivered to the marketing floors so far compared to 275 million kilograms last year. The target this year is 265 million kilograms, which is lower than last year’s target; however, this year’s crop was affected by El Nino induced drought.

    The Tobacco Industry and Marketing Board noted that 11.7 million kilograms have been delivered to auction floors and 197 million kilograms have been delivered to contract floors. The average price is $3.45 with the highest price at $6.99. Fewer bales have been rejected this year compared to last year.

  • Reynolds Files PMTA for Age-Gated Vuse Pro

    Reynolds Files PMTA for Age-Gated Vuse Pro

    R.J. Reynolds Vapor Co. has filed the final pre-market tobacco product application submissions with the U.S. Food and Drug Administration for its Vuse Pro age-gated device. The electronic nicotine delivery system device platform connects to a mobile application that verifies the consumer’s age through a third-party provider.

    Once verified, the device will unlock. It uses a unique design to only allow compatible Vuse Pro pods to be used. The technology and mobile application also enable features such as auto-lock and proximity lock to further secure device access.

    “Our PMTA submissions to the FDA underscore our commitment to both offering adult tobacco and vapor consumers choices as well as underage access prevention,” said Reynolds Executive Vice President of Scientific Research and Development Tim Nestor in a statement. “We don’t want our products in the hands of youth, period. The Vuse Pro ENDS platform provides a solution that limits access to adult consumers while also offering flavors that appeal to current adult smokers and a unique vapor experience.”

  • Scandinavian Tobacco to Acquire Mac Baren

    Scandinavian Tobacco to Acquire Mac Baren

    Photo: andrey

    Scandinavian Tobacco Group (STG) has agreed on the terms and conditions for the acquisition of all the shares of Mac Baren Tobacco Co. from Halberg. On a debt and cash-free basis, the transaction is valued at DKK535 million ($76.87 million). The acquisition will be financed by cash at hand and debt.

    A family-owned business founded in 1826, Mac Baren is a global smoking tobacco company. Its portfolio includes pipe tobacco brands such as Mac Baren, Amphora and Holger Danske as well as fine-cut tobacco brands such as Amsterdamer, Choice and Opal. The company also produces and sells nicotine pouches with the brands ACE and GRITT.

    Mac Baren’s products are sold in 74 countries with the majority of net sales generated in the U.S., Denmark and Germany. Other key markets include the U.K., France, Spain and Italy. The company is based in Svendborg, Denmark, with production facilities in Denmark and in Richmond, Virginia, USA. The company has approximately 200 full-time employees.

    Mac Baren’s reported annual net sales (April 2024) were DKK723 million with a reported EBITDA of DKK85 million. Nicotine pouches accounted for close to 20 percent of net sales with a small negative contribution to EBITDA.

    The acquisition will contribute to our already well-established position on the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers.

    Niels Frederiksen, CEO, STG

    “I am very pleased that we have taken this important step to strengthen our smoking tobacco business with the acquisition of Mac Baren,” said STG CEO Niels Frederiksen in a statement. “The acquisition will contribute to our already well-established position on the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers. The combination with our existing business is expected to deliver meaningful synergies when fully integrated and good value for our shareholders.”

    “Scandinavian Tobacco Group is acquiring a strong company with a lot of know-how, loved brands and skilled employees,” said Halberg chairman Torben Sorensen. “Since its inception in 1826, a central part of Mac Baren’s DNA has been its focus on new opportunities and ensuring optimal competitiveness. In light of this, it is timely prudence to now let the company become part of a stronger constellation. It is a particular pleasure that ownership has been retained in Danish hands. This is the best possible solution for both Mac Baren and Halberg.”

    STG’s full-year financial guidance for 2024, excluding the impact from the acquisition of Mac Baren, remains unchanged. The integration planning period is expected to take up to 120 days

  • KT&G Supports Farmers

    KT&G Supports Farmers

    Photo: KT&G

    KT&G delivered welfare improvement support funds amounting to approximately KRW420 million ($303,020) to tobacco farmers.

    This year’s support funds will be used for health checkup fees, child scholarships and the purchase of fuel-saving devices for drying facilities targeting leaf tobacco growers.

    KT&G has been delivering welfare improvement support funds to leaf tobacco farmers annually since 2013, reaching a total of KRW4.28 billion this year. During the same period, the cumulative number of benefiting growers reached 15,212.

    Korean tobacco farmers have been struggling to secure labor due to the declining and aging rural population. Tobacco cultivation is difficult to mechanize, which makes it imperative to look after growers’ health, according to KT&G.

    The fuel-saving device recirculates the heat discharged during tobacco drying. Since 2022, KT&G has provided 214 units.

    The company also assists its farmers by purchasing all domestic leaf tobacco every year and dispatching employee volunteer groups to assist during the planting and harvesting seasons.

    “We continue to support the welfare improvement projects for farmers to alleviate their difficulties and provide practical help,” said Kim Jeong-ho, head of KT&G SCM headquarters, in a statement.

    “We will continue to provide consistent support to improve the health and economic conditions of leaf tobacco farmers.”

  • Altria Submits PMTA for ‘On! Plus’ Pouches

    Altria Submits PMTA for ‘On! Plus’ Pouches

    Image: maurice norbert

    Altria Group has submitted premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration for its “On! Plus” oral nicotine pouch products. The PMTAs were submitted by Altria’s wholly owned subsidiary Helix Innovations.

    On! Plus is a spit-free, oral tobacco-derived nicotine (TDN) pouch product made from a proprietary “soft-feel” material to provide a more comfortable product experience. The On! Plus pouch is designed for adults who dip and adult dual users (i.e., adults who smoke and dip).

    According to Altria, On! Plus pouches are seamless and larger than the leading U.S. TDN brands. Similar to the currently marketed On! products, On! Plus packaging features a compartment to responsibly dispose of used product. Helix submitted PMTAs for three distinct On! Plus varieties: tobacco, mint and wintergreen. Each variety comes in three different nicotine strength options.

    “Helix’s submission of the On! Plus applications underscores Altria’s commitment to addressing consumers’ evolving preferences through innovation in potentially reduced risk products. We firmly believe that On! Plus is a transformative product that will meaningfully contribute to Helix’s growth in the U.S. market, upon timely FDA authorization,” said Nick MacPhee, managing director and general manager of Helix in a statement.

    “We’ve long believed in the value of a robust marketplace of authorized smoke-free products for adult tobacco consumers. We believe that these PMTAs demonstrate that responsibly marketed On! Plus pouches can provide a compelling alternative in the marketplace,” said Paige Magness, senior vice president of regulatory affairs, Altria Client Services.

    Upon authorization, Altria expects the products to be distributed by Altria Group Distribution Co.

    Helix currently sells On! nicotine pouches in the U.S. In the first quarter of 2024, On! shipment volume grew 32 percent versus the prior year and the brand achieved a 7.1 percent retail share of the total U.S. oral tobacco category.

    Altria entered the U.S. oral nicotine products market in 2019 after signing a deal with Burger Söhne to acquire an 80 percent ownership stake in some companies that commercialized On! Products, according to The Wall Street Journal. In December 2020 and April 2021, Altria subsidiaries concluded transactions to buy the remaining 20 percent stake of the global on! business for about $250 million.

    Altria’s PMTA announcement comes after Philip Morris International’s Swedish Match North America unit suspended nationwide sales on its U.S. website as local officials in Washington, D.C., investigate whether the company is in compliance with the district’s ban on the sale of flavored products.

  • Estonia Smoke-Free Spaces Expanding

    Estonia Smoke-Free Spaces Expanding

    Image: Scanrail

    Estonia’s government has plans to expand smoke-free outdoor spaces, including places like beaches and parks, according to ERR News.

    The government approved Estonia’s positions on tobacco policy, including the expansion of smoke-free outdoor areas to include terraces, parks, beaches and other recreational areas where many people gather.

    “Today, we are talking about a restriction that still allows individuals to smoke but in a way that does not harm the health of those around them,” said Aive Telling, head of environmental health and chemical safety at the Ministry of Social Affairs. “This is the most important point in ensuring a smoke-free environment. We must consider others, and this is also about changing societal attitudes to ensure our actions do not harm others.”

    “Let’s say that today, alcohol consumption on the beach is monitored, people are reminded that drinking alcohol on the beach is not allowed,” said Piret Valjaots, head of the Tartu Health Service. “Similarly, it will likely be possible to monitor tobacco use during the beach season. It becomes more complicated with parks as there is no constant law enforcement presence in public spaces.”

    A detailed plan is not yet in place.

    “Things do not change overnight, and this is just the beginning of a longer and broader process,” said Telling. “Today, these positions are the direction in which we are moving throughout Europe.”

  • SindiTabaco Publishes Anniversary Paper

    SindiTabaco Publishes Anniversary Paper

    Image: SindiTabaco

    To celebrate its 77th anniversary, SindiTabaco launched the document “Controversial issue, counterpoint necessary.” In 54 pages, the document addresses the history of tobacco in Brazil and the most relevant numbers of the supply chain. Its larger objective, however, is to challenge themes that are not always duly contextualized and end up being treated as contradictions by society.

    “The tobacco supply chain is one of the most organized and advanced in Brazilian agriculture, with initiatives that set an example to other sectors. Not rarely, however, it is left aside in terms of agribusiness. The launch of this document has the purpose to demystify and provide the necessary counterpoint to those who insist in refusing to state the obvious: Tobacco is agro!” Iro Schuenke, SindiTabaco president, said.

    Questions like indebtedness, monoculture, deforestation, the use of pesticides, suicides, green tobacco sickness, child labor and slave labor are themes addressed by the paper, now beginning to circulate among the main stakeholders of the entity in printed format, but it is also available online at www.sinditabaco.com.br.

    “Over the years, we have given visibility to the social and economic importance of the sector to hundreds of municipalities in South Brazil, and we have promoted a series of initiatives about agricultural practices that turn Brazilian tobacco into one of the most demanded in the world. In the meantime, we have suffered uninterrupted attacks on account of the finished product, which is legal and an adult choice. Not rarely, we witness anti-smoking activists attacking the production of tobacco, and the list of attacks has been gradually expanded over the years. From polluters to slavers are some of the biased written lines. It is about them we are talking,” said Schuenke.

  • PCA Names Habursky as Executive Director

    PCA Names Habursky as Executive Director

    Photo: PCA

    The Premium Cigar Association (PCA) has promoted Joshua Habursky to the role of executive director. Habursky’s tenure at PCA includes outside government affairs consultant (2018), Director of Federal Affairs, head of government affairs, and deputy executive director (2019-present). Since May 2024, Habursky has served as interim executive director of the PCA following Scott Pearce’s departure.

    “For the past five years we have been able to work effectively with Josh to accomplish the goals of the association related to advocacy. We are confident of his ability to take on the additional responsibility of running the full association moving forward. This internal promotion is a testament to both Josh and the entire PCA staff who have been diligently working with the board to make the association a powerhouse in all departments,” says Scott Regina, president of the PCA board of directors in a statement.

    Habursky will continue to serve as the organization’s chief lobbyist but will work with internal staff and consultants to identify new priorities and responsibilities. The PCA will implement a new five-year Strategic Plan and is expected to announce additional positive changes in the coming months, including new hires to support the trade show team.

    Habursky has spent over a decade working in government affairs roles in trade and membership associations, including the American Motorcyclist Association, American Diabetes Association, and Independent Community Bankers of America.

  • Australia Softens Prescription Mandate

    Australia Softens Prescription Mandate

    Photo: Zerophoto | Adobe Stock

    Australia will soften a proposed ban on vaping following opposition from the Greens party, leading the government to agree to revise a bill that would have limited vapes to those with a doctor’s prescription.

    The agreement between the ruling center-left Labor Party and the Greens will lead to the passage of legislation later this week that restricts the sale of vapes to pharmacies and removes them from retail shelves. This move is aimed at curbing the rise in youth vaping.

    However, the bill falls short of the government’s initial ambition to restrict sales only to those with a doctor’s prescription, which would have been a world first. The amended bill will take effect on July 1, reports Reuters.

    Under the compromise deal, vapes will be moved “behind the counter” in October. Customers will need to have a conversation with the pharmacist before making a purchase, and those under 18 years old will need a prescription.

    Health Minister Mark Butler said in a statement that the government “welcomed constructive engagement with the crossbench and secured the support of the Greens for our world-leading vaping laws.”

    The Labor Party does not have a majority in the upper house and must negotiate with other parties and independent senators to pass legislation.

  • Durbin Decries Menthol Vape Order

    Durbin Decries Menthol Vape Order

    Senator Dick Durbin
    Credit: Dick Durbin

    When the U.S. Food and Drug Administration authorized the marketing of four Njoy brand menthol e-cigarette products, Senator Dick Durbin was disappointed. He said the agency should have done better. The move marks the first nontobacco-flavored e-cigarette products to be authorized by the FDA.

    “Flavors like menthol are used by Big Tobacco companies to mask the harsh taste of their dangerous products. FDA knows this from its own experience seeking to ban the production of menthol cigarettes to protect the public health,” Durbin stated. “We’ve seen that children begin nicotine use with menthol. Today’s authorization of menthol-flavored vapes will create an opening for more children to become addicted to harmful products.”

    Earlier this month, Durbin, chair of the Senate Judiciary Committee, held a committee hearing titled “Combatting the Youth Vaping Epidemic by Enhancing Enforcement Against Illegal E-Cigarettes.” The hearing underscored the alarming level of youth e-cigarette use and the role that flavors—such as menthol—play in youth use of tobacco products and examined how federal agencies have failed to enforce laws designed to protect children from a lifetime of nicotine addiction.

    Tony Abboud, executive director of the Vapor Technology Association, who also spoke at Durbin’s hearing, said he applauds the FDA’s decision to “finally follow the massive body of science” that shows flavored e-cigarettes help people quit smoking. However, Abboud said the move does little to address the massive problems surrounding the regulatory agency’s authorization process.

    “The reality is that this news, while a tiny step in the right direction, again reveals a more troubling pattern—the FDA acting only in self-interest to quell political pressure rather than acting in the interest of the American people,” said Abboud. “The only vapes authorized today are all owned by the biggest cigarette companies.

    “Today’s authorizations once again demonstrate Brian King and the FDA’s hypocritical allegiance to those cigarette companies whose deadly cigarettes and other combustible products that the FDA continues to flood the market with at a record pace.”