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  • Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Calls are growing in Australia for the federal government to reconsider tobacco excise policy, with critics arguing high cigarette taxes are fueling the illicit tobacco market. NSW Premier Chris Minns said the “massive” excise, which adds about A$30 ($21) to a 20-pack of cigarettes, has created a price gap that benefits illegal sellers. He said the policy needs to be reviewed while emphasizing his opposition to smoking and tobacco companies.

    Former law enforcement officials and lawmakers also warned that seizures alone are not addressing the scale of the illicit trade. Former Australian Federal Police and Australian Border Force officer Rohan Pike said enforcement efforts are only capturing a small portion of illegal tobacco entering the country, while Liberal MP Mary Aldred said the black market is contributing to organized crime concerns. The federal government has rejected lowering excise and said it remains focused on enforcement and border seizures.

  • Altria, Juul Ask 9th Circ. To Overturn Antitrust Classes

    Altria, Juul Ask 9th Circ. To Overturn Antitrust Classes

    Altria and Juul Labs are asking the U.S. Court of Appeals for the Ninth Circuit to overturn a lower court’s decision certifying nationwide antitrust classes in litigation challenging Altria’s former investment in Juul. According to Law 360, the companies are arguing that the certified classes improperly combine a wide range of purchasers with differing legal claims under the laws of multiple states, making class treatment inappropriate.

    The underlying lawsuit alleges that Altria’s 2018 acquisition of a 35% stake in Juul reduced competition in the U.S. e-cigarette market after Altria withdrew its own competing vapor products. Plaintiffs claim the transaction allowed Juul to maintain higher prices and limited consumer choice. Altria and Juul deny the allegations and contend the district court erred by certifying classes that they say contain materially different groups of purchasers with varying legal and factual issues.

  • JT Acquires BREAK, Moro to Expand Combustibles in Europe

    JT Acquires BREAK, Moro to Expand Combustibles in Europe

    Following yesterday’s (July 22) announcement that Japan Tobacco Inc. was acquiring the BREAK and Moro fine-cut tobacco brands from Scandinavian Tobacco Group, the company said the deal is intended to strengthen its combustible tobacco business and support its long-term growth strategy. JT said expanding its fine-cut portfolio in Western Europe will improve returns in its combustibles business, reinforce its position in a key market, and help fund continued investment in reduced-risk products. The company added that the acquisition reflects its disciplined capital allocation strategy and is not expected to have a material impact on its financial performance.

  • UKVIA Accuses PM of Demonizing Vape Shops, Helping Alcohol

    UKVIA Accuses PM of Demonizing Vape Shops, Helping Alcohol

    The UK Vaping Industry Association (UKVIA) accused Prime Minister Keir Starmer’s government of unfairly targeting responsible vape retailers after announcing plans to review business rates relief for vape shops while granting a 20% business rates reduction to pubs, clubs and live music venues from April 2027. The government said the tax relief would be partly funded by reducing support for businesses it believes do not make a positive contribution to communities, specifically identifying vape shops.

    UKVIA Director General John Dunne said the policy unfairly demonizes specialist vape retailers that help adult smokers switch away from cigarettes while favoring venues that sell alcohol. He argued that describing vape shops as “anti-social businesses” risks reinforcing the misconception that vaping is as harmful as smoking and could undermine tobacco harm reduction efforts. The association also warned that legitimate retailers are already facing pressure from the UK’s new Vaping Products Duty, due to take effect in October.

    The association is calling on the government to withdraw its characterization of vape shops, review the proposed business rates changes, and fast-track a national vape retailer licensing scheme under the Tobacco and Vapes Act. UKVIA said it supports stronger enforcement against retailers selling to minors or offering illicit products but argues policymakers should distinguish compliant specialist vape shops from rogue operators rather than applying blanket measures across the sector.

  • Vietnam Proposes to Legislate Ban on Vapes, HTPs

    Vietnam Proposes to Legislate Ban on Vapes, HTPs

    Vietnam’s Ministry of Health is moving to codify the country’s ban on e-cigarettes and heated tobacco products by amending the Law on Prevention and Control of Tobacco Harms to align with existing National Assembly and Investment Law provisions. The draft legislation would formally define and prohibit the products while also introducing a nationwide ban on tobacco product displays at retail outlets. Health officials said the amendments are needed to address rising youth use of e-cigarettes, strengthen enforcement, and create a more comprehensive legal framework for tobacco control, with the revised bill now being finalized for submission to lawmakers.

  • Macau Tightens Tobacco Control Regs

    Macau Tightens Tobacco Control Regs

    Macau’s Legislative Assembly approved a bill expanding outdoor smoke-free areas, with the new law set to take effect on Jan. 1, 2027. The legislation prohibits smoking in designated public areas, including parts of Alameda Dr. Carlos d’Assumpção, the Border Gate checkpoint, and the Ruins of Saint Paul’s. Also, it bans smoking within 10 meters of entrances to hospitals, schools, and childcare facilities. Designated smoking areas will still be permitted in certain locations.

    The law also strengthens restrictions on alternative nicotine products and tobacco packaging. Possession and use of e-cigarettes in public areas will be prohibited from July 1, 2027, alongside higher fines for the use of nicotine pouches, herbal cigarettes, and water pipes. In addition, tobacco packaging will be required to display health warnings covering 85% of the front and back surfaces (70% for cigars) beginning July 1, 2028.

  • Indonesia Considering Vape Ban Over Drug Abuse

    Indonesia Considering Vape Ban Over Drug Abuse

    Indonesia is considering a total ban on e-cigarettes if a government review concludes they pose greater public health risks and continue to be used as a vehicle for illicit drugs, President Prabowo Subianto said. Speaking during the International Day Against Drug Abuse, the president directed multiple government agencies to develop stricter regulations governing vape imports, distribution, and sales, while warning authorities not to hesitate to impose a nationwide ban if warranted.

    The proposed review is driven by concerns that e-cigarettes are increasingly being used to consume narcotics. Prabowo cited studies claiming that 39.5% of vape users had used e-liquids containing recreational drugs, including cannabis, MDMA, and cocaine, arguing that drug syndicates are exploiting vaping devices to distribute illicit substances. He called for stronger oversight and a comprehensive policy response to protect young people from drug abuse.

  • STG Sells Fine-Cut Tobacco Brands to JT

    STG Sells Fine-Cut Tobacco Brands to JT

    Scandinavian Tobacco Group agreed to sell its fine-cut tobacco brands BREAK and Moro to Japan Tobacco Inc. for €176 million, representing a pre-tax enterprise value of approximately DKK 1.3 billion ($195 million). The transaction, which is expected to close by year-end pending customary approvals, includes brands primarily sold in Germany. BREAK and Moro accounted for about 4% of STG’s 2025 reported net sales and gross profit before special items, and approximately 6% of EBITDA before special items. Fine-cut tobacco represented around 12% of STG’s total 2025 sales.

    STG said the divestment supports its Focus2030 strategy by allowing the company to concentrate on higher-priority growth categories while transferring the brands to an owner better positioned to develop them. CEO Niels Frederiksen said proceeds from the deal will be used to reduce debt, lower leverage, and increase financial flexibility. The agreement also includes a contract manufacturing arrangement with JT for up to three years as STG reviews its manufacturing footprint and efficiency needs.

    The transaction is expected to reduce STG’s leverage ratio below its 2.5x target level at completion and will positively impact free cash flow through the transfer of inventories to JT. While the deal is expected to be dilutive to earnings, STG said it does not anticipate an impact on its 2026 guidance for reported net sales growth or EBIT margin before special items.

  • Smoke-Free Gains Push PMI Over $11B in Q2

    Smoke-Free Gains Push PMI Over $11B in Q2

    Philip Morris International reported strong second-quarter 2026 results, with net revenues exceeding $11 billion for the first time as smoke-free products drove growth. Reported diluted EPS fell 7.7% to $1.80 due to a $511 million non-cash impairment charge tied to PMI’s Rothmans, Benson & Hedges investment, while adjusted diluted EPS rose 15.2% to $2.20, or 13.6% excluding currency. Shipments increased 2.5%, led by a 7.5% rise in smoke-free products. Net revenues grew 10.4% to $11.2 billion, with smoke-free products representing about 42% of sales, while operating income increased 22% to $4.5 billion.

    The international smoke-free business remained PMI’s main growth driver, with revenue up 14.2% and volumes rising 8%. IQOS heat-not-burn shipments increased 7.6%, maintaining PMI’s leading position in the category, while growth continued across Europe and other key markets despite challenges from Japan’s excise increase and Poland’s flavor restrictions. PMI said it would increase investment in Zyn as the nicotine pouch volumes expanded globally, with the brand now available in 60 markets, while VEEV e-vapor shipments rose 55.1% as PMI continued expanding its smoke-free portfolio.

    International combustible sales also grew, supported by pricing and market gains, while the U.S. business remained under pressure. Combustible revenue increased 9.8%, with cigarette growth in Turkey, Indonesia, and Egypt, while Marlboro gained market share. U.S. revenue declined 0.7% due to weakness in cigars and wellness products, though Zyn shipments rose 1.8% to 2.9 billion pouches following portfolio expansions. PMI maintained its 2026 outlook, forecasting adjusted EPS growth of 9.5% to 11.5%, organic revenue growth of 5% to 7%, and continued investment in smoke-free products.

    According to Reuters, PMI’s shares rose ​about 5% in early trading even though the company also cut its annual profit ​forecast for the third time this year due to negative currency effects.

  • Spain Moves Forward with Stronger Tobacco Control Laws

    Spain Moves Forward with Stronger Tobacco Control Laws

    Yesterday (July 21), Spain’s Council of Ministers approved a draft tobacco control law that expands smoke-free areas, bans tobacco use among people under 18, and applies stricter rules to e-cigarettes and other nicotine products. The reform updates Spain’s 2005 tobacco law and includes bans on smoking and vaping on hospitality terraces, beaches, public pools, sports facilities, national parks, work vehicles and public event venues, while creating 15-meter protection zones around entrances to schools, hospitals, and other public buildings. The bill treats e-cigarettes, including nicotine-free devices, as well as shisha and other smoking alternatives, under the same restrictions as traditional tobacco, with tighter controls on sales, advertising and sponsorship. The legislation now moves to parliament, where further amendments could be introduced before final approval.