Blog - Tobacco Reporter

ATR Signs Letter to Stop Tobacco Prohibitions

Nine advocacy groups, including Americans for Tax Reform, have signed a letter supporting proposed legislation that would deny the U.S. Food and Drug Administration funds to implement its plans for nicotine levels and menthol flavors.

Sections 768 and 769 of the Fiscal Year 2024 Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations bill ensure that no funds provisioned by the bill can be used to implement a maximum nicotine level for cigarettes, to prohibit menthol flavors for cigarettes or cigars or other special flavors for cigars.

The letter notes the impact that tax hikes and bans can have on smuggling and organized crime and warns about a possible expansion of the black market. It also advocates for educating consumers to better empower them to make educated choices.

“The protections included in Sections 768 and 769 of this bill would prevent overreach by regulators that would have significant negative impact on taxpayers, farmers, retailers, consumers, manufacturers, state and local governments and supply chains across the country,” the letter states.

June 9, 2023

Affordable Vapes May Temper Black Market

A study conducted by researchers at Johns Hopkins University suggests that if regulators limit the nicotine content of cigarettes, people may turn to illegal sources to buy full-nicotine cigarettes, reports Filter. However, the availability of affordable vape products could deter this shift to the illicit market.

The study found that nicotine vapes, which are believed to be less harmful than cigarettes, played a crucial role in people’s choices. When vapes were priced lower than illegal cigarettes, they were purchased to a greater extent, according to the study. Restricting nicotine content alone could lead to an increase in black market cigarette purchases, but making e-cigarettes more affordable could reduce combusted cigarette consumption, the authors suggested. The study emphasizes the importance of regulating vaping products alongside reducing nicotine in smoked tobacco.

The findings suggest that a mandate requiring all cigarettes to have low nicotine content may be unnecessary if the right policy environment is established, including favorable taxation and diverse smoke-free alternatives.

June 9, 2023

Former STMA Manager Under Investigation

Wu Yi, a former deputy general manager of China Tobacco Yunnan Industrial Co., was placed under investigation “on suspicion of serious violation in law and discipline,” reports Caixin Global.

The investigation was announced by the Communist Party’s Central Commission for Discipline Inspection. This is the latest development in China’s campaign to crack down on corruption among government officials.

June 9, 2023

Kaival Appoints James Cassidy to Board

Kaival Brands Innovations Group appointed James P. Cassidy as a new member of its board of directors, according to a press release.

Cassidy joins the board of directors as part of Kaival Brands’ recently announced acquisition of an extensive vaporizer and inhalation technology patent portfolio from GoFire. Cassidy is an investor in, and serves as board advisor to, GoFire.

“We are excited to announce Jim Cassidy as our newest independent director,” said Eric Mosser, chief operating officer, president and a director of Kaival Brands. “Jim’s background as a private equity investor and advisor to growing companies not only in the tobacco space but within the consumer and healthcare spaces will be of tremendous value as we look to expand into new verticals and opportunities following our GoFire patent portfolio acquisition.”

Cassidy currently serves as the founder and CEO of Preposterous Holdings, a family-run private equity firm with offices in Asheville, North Carolina, USA, which he established in 2013. Cassidy has over 25 years of extensive experience and expertise as a private equity investor and advisor across several industries, including the key areas of tobacco, healthcare, consumer packaged goods and technology. Prior to his current roles, from 2000 to 2007, Cassidy was partner in the Strata Group, a wealth management advisory group at Smith Barney. He started his career in 1983 at UST, a tobacco business holding company, working in various roles in the government relations department and as director of corporate services.

June 9, 2023

Turkmenistan to End Smoking

Turkmenistan President Serdar Berdymukhamedov has launched an “unprecedented” anti-smoking movement, ordering the country to end tobacco use within two years, according to France24.

The movement will include a crackdown on “illegal importations of tobacco products and their sales, including shisha pipes and electronic cigarettes,” said Berdymukhamedov. “Our state will launch a vast anti-tobacco movement of unprecedented size to help expand the tobacco-less countries of the world.”

The president plans for the country to be tobacco-free by 2025. There are currently already strict anti-smoking measures in place, including advertising and public smoking bans.

June 8, 2023

Hungary Tobacco Excise to Increase

Excise duties on tobacco products and alcohol products will increase in Hungary beginning January 2024, according to Finance Minister Mihaly Varga’s tax plan, reports Hungary Today.

Under the plan, the price of a pack of cigarettes could increase by up to 250 forints.

The tax increase is necessary, according to the finance ministry, because the European Union minimum tax is set in euros.

June 8, 2023

Hawaii Bans Import of E-Cigs and E-Liquids

Hawaii has banned the shipping of e-cigarettes or other tobacco products, reports the Star Advertiser.

Under the new legislation, a person who knowingly and unlawfully ships vaping and other tobacco products valued at less than $10,000 could face misdemeanor charges.

Anything valued above $10,000 would be classified as a class C felony.

Governor Josh Green said this change will help to better regulate smoking products that enter the state.

“Tobacco is poison, and tobacco use continues to be the single most preventable cause of disease that we could deal with, that we can affect when we make good decisions as policymakers; it causes death in the United States, so this is a monumental first step in protecting our keiki from big tobacco,” he said, using a Hawaiian word for children or offspring.

Any business selling vaping products must have a retail tobacco permit from the state. The new law takes effect on July 1.

June 8, 2023

Imperial Suggests Steps to Tackle Youth Vaping

The United Kingdom should establish a new retailer licensing scheme to improve compliance, review flavor naming conventions to limit youth appeal and strengthen the regulations for online advertising and promotion, according to Imperial Brands.

The company made its suggestions in response to the Office for Health Improvement and Disparities’ (OHID) call on stakeholders to identify opportunities to reduce underage vaping while keeping e-cigarettes available as a quit aid for adult smokers.

In its consultation response, Imperial also suggested raising product quality and safety standards to ensure adult smokers can feel confident about transitioning to vape products, and working with industry to increase support to local authorities to tackle noncompliance.

“We welcome the opportunity to contribute to OHID’s call for evidence on youth vaping. Vape products should be used by existing adult smokers and adult vapers only—they should never be used by children,” said Oliver Kutz, general manager U.K. and Ireland at Imperial Brands, in a statement.

“Government, industry and enforcement authorities must work together to create a regulatory framework which both supports the important role vapes can play in helping adult smokers quit and prevents the appeal and access of these products to under 18s. We are proposing a series of measures to address product standards, flavor and naming regulations, and the retail environment. An integrated, multi-pronged approach is needed in order to drive out irresponsible actors and improve trust in this important product category.”

June 7, 2023

Sampoerna Commits to Value Creation

Sampoerna has reiterated its commitment to creating value and contributing to a sustainable future as the company celebrates its 110th anniversary, reports The Jakarta Post.

Speaking to reporters on May 26, President Director Vassilis Gkatzelis highlighted Sampoerna’s investments in Indonesia.

Since its sale to Philip Morris International in 2005, Sampoerna has invested $6.3 billion in the country. Recently, it constructed a $186 million factory in Karawang, West Java, dedicated to the production of smoke-free tobacco products, such as PMI’s successful IQOS heat-not-burn device.

The facility started operations in the fourth quarter of 2022 and supplies both the domestic market and Asia Pacific.

Sampoerna also has two cutting-edge laboratories—one in Pasuruan, East Java, and one in Karawang. Directly and indirectly, the company operates 45 manufacturing facilities and employs more than 66,000 people in Indonesia. In addition, it works with 22,000 farmers who grow either tobacco or the cloves required to manufacture kretek cigarettes.

Sampoerna also partners with third-party operators owned by local entrepreneurs or cooperatives specializing in hand-rolled manufacturing.

Gkatzelis, who took charge of Sampoerna last year, also touched on the importance of sustainability. “Every time we act, we try to create sustainable value for the long term,” he was quoted as saying. “So, 110 years of Sampoerna’s presence is important, but we need to create values for the next 110 years.”

June 7, 2023

Pediatricians Call for Ban on Disposables

The Royal College of Pediatricians and Child Health (RCPCH) has called for a ban on disposable e-cigarettes, stating that vapor products can be just as addictive as traditional cigarettes, according to Metro.

“Since e-cigarettes have only been on sale in the U.K. since 2007, long-term studies don’t yet exist,” the RCPCH said. “We have even less evidence on the long-term impacts of these products on young lungs, hearts and brains.

“It took experts decades to fully understand the impact of traditional cigarettes; we cannot risk our children’s health in waiting this long again for longer term studies.”

Action on Smoking and Health data shows that there has been a 50 percent increase in U.K. kids trying vaping over the last year and a rise in experimental vaping among 11-year-olds to 17-year-olds.

“Without a doubt, disposable e-cigarettes should be banned,” said Mike McKean, a doctor. “There is absolutely no reason that these cheap, readily available, brightly colored, recreational products should be single use.

“Westminster’s approach to this problem is out of step with even our closest neighbors, with countries such as Scotland, France, Germany and Ireland all seriously considering a ban.”

In response to the RCPCH’s call, the U.K. Vaping Industry Association (UKVIA) stated that while youth vaping needs to be addressed, banning disposables is not the answer.

“There is no doubt that strong, targeted action directed at those illegally selling vape products to children is the way forward,” said John Dunne, director general of the UKVIA, in a statement. “Vitally, any youth prevention measures cannot be to the detriment of adult smokers looking to quit through vaping and vapers who want to avoid a return to smoking.”

June 7, 2023