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  • Russia Sues Dutch Owner of Megapolis

    Russia Sues Dutch Owner of Megapolis

    Image: somemeans

    The Russia government is seeking to suspend the corporate rights of Megapolis Distribution, the Dutch owner of Russian tobacco distributor Megapolis Group, reports Interfax.

    On July 18, Russia’s Industry and Trade Ministry filed a lawsuit against Megapolis Distribution in the Arbitration Court of the Moscow Region, according to records.

    The Russian company was earlier included in Russia’s list of economically significant organizations.

    The court has agreed to hear the lawsuit, and the first hearing is scheduled for August 8.

    Shortly after Russia’s invasion of Ukraine in February 2022 and just before the EU imposed sanctions on him, Russian billionaire Igor Kasaev, who owns 40 percent of Megapolis, funneled €8 million ($8.71 million) through the Netherlands, according to the NL Times.

    Kasaev is known to have ties to the Kremlin and the Russian arms industry. He keeps his shares in Megapolis, the largest distributor of cigarettes in Russia, in the letterbox company registered in The Hague. The sanctions froze Kesaev’s assets in his Hague company, “trapping” some €650 million in assets in the Netherlands.

  • Zimbabwe Pioneers Centralized Curing

    Zimbabwe Pioneers Centralized Curing

    Photo: Taco Tuinstra

    Zimbabwe’s Tobacco Industry and Marketing Board and Boost Africa have jointly introduced a centralized curing business system for smallholder tobacco farmers, reports News Day.

    According to Boost Africa representative Henry Dike, the system will not only reduce production cost and efficiency but also boost sustainability.

    Smallholders in Zimbabwe have traditionally cured their tobacco individually. Most use wood as a fuel source, which has led to concerns about deforestation.

    “By providing them with the necessary resources and training, we are not just improving their yield but also elevating their entire farming operation to a commercial level,” said Dike.

    “It’s not just about financial gains; it’s about creating a sustainable, scalable farming practice that can be replicated across the country,” he added.

    Tafadzwa Mukarakate, agronomist and head of the Zimbabwe Farmers’ Union, said the project was critical in ensuring that farmers have the means to reinvest in their operations.

    “The success of this project is a clear indication that with the right support, smallholder farmers can achieve commercial success,” he said.

  • Philippines Halts Online Vapes Trade

    Philippines Halts Online Vapes Trade

    Photo: Ranta Images

    The Philippine government has halted the sale, advertising and distribution of vape products online, reports the Inquirer.

    “This is a temporary suspension until the e-marketplaces are able to convince us of their compliance with their obligations under Republic Act No. 11900, or the vape law, and other laws and related issuances,” said Trade Secretary Alfredo Pascual on July 19.

    According to Pascual, the order was prompted primarily by the need to prevent the sale of vape products to minors and ensure that those being sold online meet the safety standards set by law.

    Vape companies and online sales platforms must submit a sworn certification of their compliance with the law to be allowed to resume sales.

    A recent investigation by the Department of Trade and Industry (DTI) of 90,000 companies engaged in the vape business revealed that 284 had violated various laws, by selling vapes within 100 meters of a school or by using flavors designed to appeal to minors, for example.

    The DTI has confiscated at least PHP32.76 million ($561,454.25) worth of vape products so far this year, mostly for being offered for sale without proper certifications, like the Philippine Standard mark and the Import Commodity Clearance sticker.

    In June, the department ordered the mandatory certification of vape products in compliance with the Vape Act, which lapsed into law in July 2022.

    While supporting the DTI in its efforts to protect consumers and prevent youth access to vaping products, the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) said an outright suspension of online sales would not solve the problem.

    Instead, the organization argued for greater enforcement of existing laws.

    “While the intention behind the suspension is commendable, CAPHRA believes that a more effective approach would be to enhance enforcement measures rather than imposing outright bans that could inadvertently drive consumers back to more harmful combustible tobacco products,” said CAPHRA representative Clarisse Virgino.

  • JTI to Build Factory in Morocco

    JTI to Build Factory in Morocco

    Image: REC and ROLL

    Japan Tobacco International will break ground in August for a MAD931 million ($92 million) factory near Tangier, Morocco, reports Morocco World News.

    “This is a historic moment that marks the beginning of a new era for JTI in North and West Africa,” said Jose Luis Amador, general director of JTI Northern and Western Africa.

    He praised the support from Moroccan authorities, which he described as exemplary and in line with Morocco’s reputation for a favorable business environment.

    Once operational, the facility will create 170 direct jobs and numerous indirect employment opportunities in the region, according to JTI, which aims to hire 30 percent women at its new facility.

    The factory will be built on a 4.7-hectare site with an 18,000-square-meter built area. It will implement energy efficiency measures, such as LED lighting and automated climate control systems. Additionally, a rainwater collection and recycling system will be installed to handle nonpotable water needs.

  • Georgia to Require Production Licenses

    Georgia to Require Production Licenses

    Photo: Taco Tuinstra

    Georgian lawmakers approved legislation requiring tobacco manufacturers to obtain licenses, reports Front News Georgia. They set the license fee at GEL50,000 ($18,521.26).

    The amended Law On Tobacco Control mandates licenses for activities such as slicing, coating, dipping and mixing raw tobacco, as well as the production of cigarettes. The packaging of finished tobacco products and cigarettes also falls under the new licensing requirements.

    Excluded from the licensing requirements are tobacco importers, leaf growers and primary processors.

    The government will determine the specific rules and conditions for obtaining a tobacco production license through a normative act.

    An explanatory note accompanying the draft law highlighted the importance of improving and strengthening the tobacco production process to reduce the use of harmful raw materials. According to the note, high-tech processing by reputable manufacturers can improve health protection standards for smokers.

  • Romania Restricts ENDS Promotions

    Romania Restricts ENDS Promotions

    Photo: cristianbalate

    Romania has tightened advertising restriction on electronic nicotine devices and modern oral products, reports Xinhua.

    Under new legislation signed into law by President Klaus Iohannis on July 19, the rules cover e-cigarettes, heat-not-burn products and nicotine pouches.

    Explicit advertising for these products is now banned on radio and television broadcasts and on public transportation tickets.

    Furthermore, the legislation prohibits advertising for these products within educational and healthcare institutions or within 200 meters of their entrances.

    The law also restricts advertising in publications primarily targeting minors and in theaters before, during and after performances intended for children.

  • PTC Risks Losing Sudan Small-Pack Order

    PTC Risks Losing Sudan Small-Pack Order

    Image: Maksym Kapliuk

    Pakistan Tobacco Co. (PTC) may lose a large order from Sudan if the health ministry continues to drag its feet on the required regulatory approval, reports the Business Recorder.

    Sudan has ordered $20.5 million worth of cigarettes, to be delivered in packets of 10 sticks of cigarettes each, from PTC. The sale of such packs is prohibited in Pakistan but allowed in Sudan.

    Prime Minister Shehbaz Sharif has granted PTC’s request for an exemption of the small-pack prohibition for exports, but the Ministry of Health has failed to issue the required amendment in the statutory regulatory order.

    Due to the delay, Sudan has now started contacting other countries to meet its domestic demand. A PTC official said that if Pakistan does not allow exporting cigarettes in small packets, the order may be shifted to Bangladesh or Indonesia.

    PTC has been exporting cigarettes since 2019 and has so far earned $156 million, bringing much-needed hard currency into Pakistan. For the next fiscal year, the company is targeting $60 million in exports.

    In the most recent fiscal year, the company paid PKR148 billion in federal excise duty and sales tax.

    It’s not the first time PTC has lost business due to the small-pack restrictions. In 2019, the company lost an export order to the Gulf. At that time, the Ministry of Commerce had given permission for exports, but the Ministry of Health withheld approval.

  • Cooks Islands Ban Vape Trade

    Cooks Islands Ban Vape Trade

    Photo: Stella Kou

    The Cook Islands has banned the manufacture, importation, sale, distribution and advertising of cigarette alternatives such as e-cigarettes, reports Cook Island News.

    The new Tobacco Products Control Amendment Act 2024 also raises the legal age of sale for tobacco products from 18 years to 21 years and prohibits smoking in nearly all public places.

    The act requires those who want to sell and import tobacco to apply for permits. To date, the Ministry of Health has approved 37 of 43 applications. The authorized retailers can start selling tobacco from Aug. 1, 2024. The remaining applications are pending approval for further information, according to Secretary for Health Bob Williams.

    The new rules also prohibit internet sales of tobacco products except when used by importers and distributors for business-to-business transactions. Violators risk fines of up to $10,000 or prison terms of up to three months.

    Tobacco product displays are banned as well.

  • Sonoco Announces 3-Piece Can

    Sonoco Announces 3-Piece Can

    Image: Sonoco Industrial & Specialty Plastics

    Sonoco Industrial & Specialty Plastics has launched the Sonoco 3-Piece Can for tobacco and other products.

    “The inspiration behind the 3-Piece Can stems from the challenges we’ve learned many manufacturers face, particularly in the chewing tobacco industry,” said Curtis Bares, global director of sales and marketing for Sonoco Industrial & Specialty Plastics.

    “The burden of ordering cans from overseas results in extensive lead times, increased inventory levels and excess packaging waste. That’s why we’ve embarked on a journey to develop a locally molded polypropylene can to alleviate these pain points.”

    The can is an injection-molded, 3-piece food-grade polypropylene set to be manufactured entirely in Forest City, North Carolina, USA. According to Sonoco, the company’s factory is FDA-registered and ISO-9001 certified, equipped with state-of-the-art machinery and a robust quality management system to guarantee adherence to specifications and sustainability standards.

    Sonoco lists the following benefits for its new product:

    • A dual-compartment design offering flexibility with two separate moisture-resistant compartments
    • Compact dimensions of 2.75” in diameter and 0.940” in depth
    • Eco-friendly makeup from single-resin material, recyclable in areas with proper collection infrastructure
    • Made in the USA, supporting local manufacturing and reducing carbon footprint
    • Just-in-time supply management, ensuring optimal inventory levels and minimizing storage costs
    • Efficient packaging design with reduced waste and minimal use of corrugate
    • Stackable design for ease of transportation and storage, ensuring product integrity

    For more information, visit sonoco.com/plastics.

  • A Missed Opportunity

    A Missed Opportunity

    Photo: luciano

    E-cigarettes and older smokers

    Neil McKeganey, Gabe Barnard and Andrea Patton

    Amid the intense media focus and regulatory action directed toward youth vaping in the U.S., there is another population demographic whose e-cigarette use is worthy of attention—though in this case, more as a result of their relative lack of use of these devices. There are an estimated 17 million adults in the U.S. aged over 45 who are smoking every day or some days. With research showing that quitting smoking by age 50 is associated with a gain of around six years in life expectancy, the question of how best to boost smoking cessation efforts among older smokers is of increasing importance.

    Although e-cigarettes have become hugely popular as a means of quitting smoking, research undertaken by the Centre for Substance Use Research (CSUR) shows that the use of these devices by older smokers in the U.S. is only a fraction of what it is among younger smokers. According to the CSUR’s Tobacco Product Prevalence Study, while 11 percent of adult smokers aged 25 to 44 years report currently using e-cigarettes, that figure drops to 5.2 percent in the case of those aged over 45.

    The CSUR research also shows that the likelihood of older female smokers using e-cigarettes is even less than is the case for older male smokers. Even in the face of the overall low levels of e-cigarette use, it was evident that some brands were more successful than others in attracting older smokers, with Vuse, Smok and Voopoo reported as being used more widely than other brands.

    But why might there be a disparity in overall levels of current e-cigarette use between older and young smokers? We know from research that smoking quit attempts are influenced by the level of nicotine dependence and smoking duration. It may be that for these combined reasons, older smokers are less drawn to e-cigarettes as a route out of smoking.

    Equally, many older smokers might perceive e-cigarettes as devices that are more often associated with young adult lifestyles and for that reason alone may be seen as something that is not for them. Whatever the reasoning behind the lower levels of e-cigarette use among older smokers, there is much to be gained from identifying how that disparity might be tackled. To do this, it will be necessary to find out much more about why e-cigarettes appeal to some groups more than others and for e-cigarette manufacturers to explore ways of developing products that are specifically designed to appeal to the older smoker.

    There is a further reason why the vaping industry might be wise to give greater attention to the older smoker, which has to do with the importance of tackling youth vaping. If e-cigarette manufacturers succeed in developing a vaping product that appeals to the older smoker, there is a strong possibility that their success in this regard will result in a product that has low youth appeal.

    The likelihood of young people wanting to use a product that is associated with the older smoker is almost certainly less than the likelihood of an older smoker being drawn to a product they see as being associated with youth use. Vaping products developed specifically for the older smoker may have an increased chance of securing a marketing authorization from the U.S. Food and Drug Administration under its premarket tobacco product application process, securing access to a large market of potential new consumers. It’s worth remembering too that the market of smokers aged 45 and over within the U.S. may be in excess of 17 million, underlining the potential gain for the companies who succeed in winning that market.