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  • New Vape Restrictions in Costa Rica

    New Vape Restrictions in Costa Rica

    Image: Zerophoto

    Costa Rica has banned vaping in public places such restaurants, offices and educational institutions, reports The Tico Times.

    The move follows a dramatic increase in vaping-related disorders. In 2023 alone, the Costa Rican Social Security Fund recorded 14 cases of vaping-related intoxication, including nine minors, with seven requiring hospitalization.

    Vaping has become increasingly popular among young people in recent years. Gabriela Rojas of the Institute on Alcoholism and Drug Dependence (IAFA) warned that electronic cigarettes contain harmful chemicals.

    “The tobacco industry has cleverly marketed these products, using technology, attractive colors, and various flavors to target underage individuals,” said Zeanne Gonzalez, another IAFA official.

  • Sales Up at Haypp Group

    Sales Up at Haypp Group

    Photo: Haypp Group

    The Haypp Group, the world’s largest online retailer of nicotine pouches, reported net sales of SEK942.8 million ($89.66 million) for the second quarter of 2024, up 23 percent over the comparable 2023 period.

    Gross profit increased to SEK135.2 million, corresponding to a gross margin of 14.3 percent. Adjusted earnings before interest and taxes rose to SEK34.4 million, mainly due to the higher gross margin, increased volume as well as efficiency gains, partially offset by continued investments into additional capabilities.

    The company’s nicotine pouch volume grew by 43 percent over the second quarter of 2023.

    “Haypp group continued to show a very strong performance in the second quarter with YoY Nicotine Pouch volume growth of 43 percent,” said Haypp Group CEO Gavin O’Dowd in a statement.

    “This is accelerating from prior quarters as the category continues to thrive in our growth markets due to the increasing appetite for risk reduced products. While the category experienced some turbulence in the USA during the quarter, we were well positioned and our volume grew around 70 percent. The investments in our business operations have continued to deliver value with an increase of 68 percent in our adjusted EBIT. This robust growth, over many years shows how robust our business is, irrespective of the economic environment.”

    The Haypp Group’s interim report is available here.

  • Envoy Shown the Door Over Tabesa Sanctions

    Envoy Shown the Door Over Tabesa Sanctions

    Image: Video_StockOrg/MelissaMN

    Paraguay has asked the U.S. to withdraw its ambassador following the Biden administration’s announcement of sanctions on Tabacalera del Este (Tabesa), a tobacco firm linked to the South American nation’s former president who has been flagged by the White House for corruption, reports the AP.

    In a Aug. 8 statement, the Paraguayan Foreign Ministry asked the U.S. government to “accelerate the departure process” of Ambassador Marc Ostfield.

    Earlier this week, the U.S. Treasury Department announced sanctions on Tabesa for supposedly illegally enriching Horacio Manuel Cartes Jara, who served as Paraguay’s president from 2013 to 2018 and still wields significant political power in the country.

    According to the Treasury Department, Cartes Jara owned a 50 percent or greater interest in Tabesa and received millions of dollars from the company following a sales agreement.

    In a recent news conference, Ambassador Ostfield said the Biden administration was prepared to “use the range of relevant tools to combat corruption, including visa restrictions, designations, financial sanctions and extradition.”

    Tabesa and Cartes Jara have rejected the accusations.

  • ‘Medical Vapes Facing Uphill Battle’

    ‘Medical Vapes Facing Uphill Battle’

    Photo: DALU11

    Companies developing vape-like devices to ease medical conditions such as migraines and respiratory diseases continue to face skepticism from health authorities and the public, according to a Reuters article.

    The piece details the efforts of Qnovia, MIIST Therapeutics and Greentank, which are exploring the potential of nebulizer technology or heating technology to deliver medications.

    The companies say inhalation can relieve pain faster and with fewer side effects than pills. Federico Buonocore, a professor focused on alternative pulmonary drug delivery at Kingston University in Britain, told Reuters that existing inhaled drug delivery devices are clunky and difficult to operate, and so tend to be used wrongly. A vape-like design could solve such challenges, he was quoted as saying.

    Qnovia plans to submit drug applications in the U.S. soon and the United Kingdom in 2026 for its device as a nicotine replacement therapy, and launch a clinical trial in September.

    Greentank is looking for a pharmaceutical partner to support the development of its heating chip for medicine delivery.

    Efforts by traditional tobacco companies to tap into the pharmaceutical market have been hampered by mistrust and opposition from health officials.

    Philip Morris International last year scrapped a goal to earn over $1 billion in annual revenue by 2025 from its wellness and healthcare unit, which includes a business making asthma inhalers.

    CEO Jacek Olczak said the company had been “too optimistic about how the external environment will accept… Big Tobacco” in industries outside of nicotine. An inhaled aspirin product developed by the unit was also deemed unsuccessful after a clinical trial last year.

    Tobacco-backed companies developing Covid-19 vaccines using plant-based technology also faced stiff opposition from health groups, including the World Health Organization.

    Buonocore said the stigma associated with tobacco and vaping companies would be difficult for the sector to overcome.

  • Taiwan Mulls Ban on Flavor Chemicals

    Taiwan Mulls Ban on Flavor Chemicals

    Photo: Hertz Flavors

    The Ministry of Health and Welfare wants to ban 27 types of chemicals from being used in tobacco products, vapes and heat-not-burn devices, reports The Taipei Times.

    The list includes vanillin, maltol and heliotropin among other chemical compounds commonly used as additives in flavored tobacco products. Without these substances, manufacturers would be unable to produce popular flavors such as caramel, butter, almond, rose, coconut, raspberry, vanilla and cheese,

    The new proposal would enable the ministry to remove more than half of flavored tobacco products from the market, according  to Lo Su-ying, who heads the Health Promotion Agency’s Tobacco Control Division.

    Under the draft rule, manufacturers and importers of products containing the banned substances would risk fines of between NTD1 million ($30,846) and NTD5 million, while sellers would incur penalties of between NTD10,000 and NTD50,000.

     The government will subject the proposal to a 60-day public consultation.

  • Activists Decry Kiwi Disposables Ban

    Activists Decry Kiwi Disposables Ban

    Photo: YarikL

    Vaping activists have expressed concern about New Zealand’s decision to ban disposable e-cigarettes.

    The New Zealand Ministry of Health announced the ban with the intention of reducing adolescent vaping. The new regulations prohibit the manufacture and sale of all non-rechargeable and non-refillable vapes, including single-use containers such as pre-filled tanks, pods and cartridges.

    The World Vapers Alliance (WVA) warned that the ban could undermine New Zealand’s progress in reducing smoking rates.

    “Preventing teenagers from using nicotine products is essential, and strict age regulations should be enforced to achieve this goal,” said WVA Policy Manager Alberto Gómez Hernández in a statement.

    “However, banning disposable vapes and various pod systems for adult consumers will have negative public health implications and jeopardize the progress towards a smoke-free society achieved in the last decade. This approach fails to recognize the vital role disposable vaping products play in helping smokers transition away from cigarettes.”

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) expressed similar reservations. “We understand and support the government’s intent to curb youth vaping,” said CAPHRA Executive Coordinator Nancy Loucas.

    “However, the proposed ban on disposable vaping products, including prefilled tanks, pods and cartridges, will create substantial barriers for adults who smoke and older vapers. Many of these individuals rely on simpler, disposable products due to difficulties with dexterity and the complexities of refillable devices. This ban could force them back to smoking cigarettes, which is counterproductive to the Smokefree 2025 goal.”

  • Strong Start for Universal in Fiscal 2025

    Strong Start for Universal in Fiscal 2025

    Photo: Taco Tuinstra

    Universal Corp. reported net revenue of $597.1 million for the first quarter of its fiscal year 2025, up by approximately 15 percent for both its tobacco and ingredients operations segments. Operating income was $17.2 million, up 56 percent compared to the same quarter last fiscal year.

    The revenue increase in the tobacco operations segment was driven by higher sales volumes and prices. “Coming out of an exceptional fiscal year 2024, we benefited from continued strong demand from our tobacco customers,” said Universal chairman, President and CEO George C. Freeman III in a statement.

    “We believe this demand will continue to support solid results for the segment for fiscal year 2025. Our strategic decisions to accelerate tobacco crop purchasing allowed us to secure our contracted tobacco in certain dynamic markets, which has positioned us well to meet customer demand. As in previous fiscal years, we expect that tobacco shipment timing and related revenue recognition will be more heavily weighted toward the second half of our fiscal year 2025.

    “Our uncommitted tobacco inventory levels at June 30, 2024, remained low at about 13 percent, and we believe that global leaf tobacco remains in an undersupply position. Looking ahead, we expect that recent elevated green tobacco prices will incentivize farmers to increase planting for the next season, potentially leading to more balanced markets in the coming years.”

  • Moldovan Tobacco Sector Asks for Help

    Moldovan Tobacco Sector Asks for Help

    Image: Igor Syrbu

    Tutun Moldova has asked the government to help tobacco growers cope with adverse events such as drought, reports IPN Press Agency.

    According to the association, this year’s dry spell has negatively affected two-thirds of the 400 hectares cultivated with tobacco.

    In an open letter, Tutun Moldova President Vasile Coșneanu asked Prime Minister Dorin Recean and Minister of Agriculture and Food Industry Vladimir Bolea to consider tobacco producers’ plight.

    According to Coșneanu, Moldova’s tobacco industry can be highly profitable. In 2000, Moldova earned more than $29 million from leaf exports. In 1985, farmers cultivated tobacco on about 77,000 hectares. By 2023, however, this area had dropped below 200 hectares.

    Tutun Moldova believes that sector can once again become a pillar of the national economy, providing up to 40,000 jobs and contributing to GDP growth.

    However, for this to happen, the sector requires support from public authorities, the association noted, adding that tobacco growers had neither received nor requested public assistance over the past decade.

    “This year, however, the severe drought we are facing made us ask you to order the creation of a working group to assess the complicated situation in which the producers have found themselves and to develop a plan of concrete and realistic actions that would be implemented to remedy the state of affairs,” the group wrote in its letter.

    “We express our willingness to provide the necessary support to this working group, as we consider that the interest is mutual.”

  • Cut Rag’s Harare Factory Nearing Completion

    Cut Rag’s Harare Factory Nearing Completion

    Photo: Tobacco Reporter archive

    Cut Rag Processor’s factory in Harare, is nearing completion, reports The Sunday Mail.  The plant will process cut rag tobacco and manufacture cigarettes for domestic and export markets.

    According to Cut Rag Processors Managing Director Nyasha Chinhara, the project, which will triple the company’s current production is about 85 percent finished. Construction is almost complete and technicians have been installing production machinery and ancillary services.

    The company expects to commence production of cut rag tobacco before the end of 2024.

    “With this facility providing both cut rag processing and cigarette manufacturing, coupled with the increased installed production capacity, there shall be an increase in value addition of Zimbabwean tobacco products,” Chinhara told The Sunday Mail.

     “The sustainable growing, processing and manufacturing of tobacco products in Zimbabwe shall play a key role in Zimbabwean tobacco’s competitiveness in future.”

  • Inaccurate Disclosures Nicotine Analogs: Study

    Inaccurate Disclosures Nicotine Analogs: Study

    Photo: ryanking999

    Companies are inaccurately disclosing the ingredients in products containing nicotine analogs, according to researchers at Duke University and Yale University. Remarkably, in many instances, the levels measured were lower than those labeled on the packaging.

    Nicotine analogs are currently not subject to the U.S. Food and Drug Administration’s marketing authorization process and have not been extensively studied for their health effects. One chemical, known as 6-methyl nicotine, has been shown in rodent experiments to be far more potent than nicotine in targeting the brain’s nicotine receptors.

    The scientists analyzed a Spree Bar e-cigarette, which is listed as containing 5 percent 6-methyl nicotine. Study results showed the actual amount of the chemical was about 88 percent less than labeled. The e-cigarettes also included an artificial sweetener that is up to 13,000 times sweeter than table sugar, and an artificial coolant that mimics menthol’s effects.

    A second brand of e-cigarettes, marketed as Nixotine, Nixodine, Nixamide and Nic-Safe, contained a nicotine analog called nicotinamide, also at levels lower than the labels indicated, and combined with undisclosed amounts of 6-methyl nicotine. This brand did not include sweeteners or coolants.

    The researchers speculated that companies are using nicotine analogs to bypass health regulations covering vaping products.

    “These products appear to be designed to circumvent the laws and regulations in place to protect people—especially children—from the harmful effects of smoking and tobacco use,” said senior author Sven Eric Jordt in a statement. “We do not know what these chemicals do when they are heated and inhaled. These are questions that should be answered before we allow products on the market.”