Blog - Tobacco Reporter

Vape Recycling Introduced in Switzerland

E-cigarette sales in Switzerland have increased over the past few years, with 10 million products imported in 2022. Most vapes end up in the landfill rather than being recycled as required by the Ordinance on the Return, Taking Back and Disposal of Electrical and Electronic Equipment.

In conjunction with various partners, SENS eRecycling has developed an industry solution for the environmentally friendly disposal of e-cigarettes, according to the company’s website.

Upon request, SENS eRecycling will deliver vape recycling bags to any e-cigarette sales outlet; the bags can be used to collect returned e-cigarettes and send them back to SENS eRecycling by post. Sales outlets and consumers can also hand in used vapes to any SENS collection point throughout Switzerland.

August 25, 2023

Juul to Restructure and Reduce Employees

Juul Labs has announced a company restructuring aimed at reducing operating costs and positioning the company to continue to advance its mission during a period of regulatory and marketplace uncertainty.

According to a press release, the principal aim of this restructuring is to enable the company to maximize profitability and cash-flow generation while continuing to invest in its core priorities, which include delivery of high-quality products to its commercial partners, ongoing development of next-generation products, engagement with the U.S. Food and Drug Administration regarding Juul’s pending and possible future market authorization applications, and commercial growth consistent with compliance with all applicable laws and regulations.

With these operating cost reductions, Juul Labs says it is positioned to increase its adjusted EBITDA margins and generate meaningful free cash flow before litigation settlements. In doing so, the company will reduce its need to access capital pre-premarket tobacco product application, extend its time horizon to continue its pursuit of market orders from the FDA and generate positive equity value as the company pays down liabilities over time.

Juul says it remains fundamentally optimistic about the prospects for Juul Labs Inc.—“a view rooted in our belief that our technology and our pipeline of new innovations represent the most valuable ever brought forward to transition adult smokers away from cigarettes while combating underage use,” the company wrote on its website.

August 24, 2023

Philippine Law Paves Way for Alternatives

The enactment of a new vape law in the Philippines last year has paved the way for products that provide smokers with better alternatives to cigarettes, according to Philip Morris Fortune Tobacco Co. (PMFTC) President Denis Gorkun.

In addition to moving regulation of vapes from the Philippine Food and Drug Administration to the Department of Trade and Industry, Republic Act 11900 lowered the purchase age for e-cigarettes and heated tobacco products from 21 to 18, removed a two-flavor limit on product flavors and allows companies to conduct corporate social responsibility-related activities.

In an interview with the Manila Bulletin, Gorkin said PMFCT would soon launch IQOS Luma, which uses induction technology to heat tobacco, and ZYN nicotine pouches in the Philippines. Made by Swedish Match, which was acquired by PMFTC’s parent company, Philip Morris International in 2022, ZYN is the best-selling nicotine pouch in the United States today.

Since PMFTC launched IQOS in the Philippines, around 75,000 local smokers had switched away from cigarettes, according to Gorkun.

Gorkun said PMI aims to eliminate cigarette consumption in line with its vision to deliver a smoke-free future. “We will continue to work towards our smoke-free future vision with products that are found by numerous international health authorities to be far better compared to continuing to smoke cigarettes.”

He said the passage of the landmark Vape Law a year ago is a “win” for public health. While providing smokers with less harmful options, the law also contains provisions to deter underage consumption, according to its proponents.

One of the authors of the vape law, former Representative Sharon Garin, said Republic Act 11900 provides that vaping isn’t made appealing to minors. “We don’t want non-smokers to pick up the habit of vaporized or electronic cigarettes,” she was quoted as saying. “What we want is a less harmful alternative for current smokers.”

August 24, 2023

Pakistan: Cigarettes Seized for Tax Violations

Pakistan’s tax authorities confiscated 650 cartons of cigarettes from Philip Morris (Pakistan), alleging that the products were sold below the minimum retail price, reports Pakistan Today.

“This action underscores the government’s commitment to upholding tax laws and safeguarding public health,” a Federal Bureau of Revenue official was quoted as saying. “Violations of these regulations not only undermine public health initiatives but also lead to revenue losses for the government.”

Philip Morris insisted it was in full compliance with tax obligations for all its brand. A company spokesperson said that the company is cooperating with FBR and is dedicated to tackling illicit trade in Pakistan.

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August 24, 2023

Retailers Chided for Youth-Appealing Products

On August 23, 2023, the U.S. Food and Drug Administration issued warning letters to 15 online retailers for selling and/or distributing unauthorized e-cigarette products packaged to look like youth-appealing characters, school supplies, toys and drinks.

“The design of these products is a shamelessly egregious attempt to target kids,” said Brian King, director of FDA’s Center for Tobacco Products, in a statement. “It’s a tough sell that adults using e-cigarettes to transition away from cigarettes need them to look like SpongeBob in order to do so successfully.”

The unauthorized products described in the warning letters include e-cigarettes that feature youth-appealing characters from TV shows, movies and video games; products that are designed to look like school supplies and toys; and vapes that imitate youth-appealing drinks such as Starbucks and Dunkin Donuts coffee cups.

The recipients of the letters have 15 working days to respond with the steps they’ll take to correct the violation and to prevent future violations.

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August 23, 2023

Zimbabwean Growers Poised to Start Planting

Zimbabwean farmers will start planting next year’s tobacco crop starting early next month, reports The Herald.

Both irrigated and dryland tobacco farmers are preparing to transplant their seedlings from the seedbeds to the field.

The irrigation tobacco is set to begin transplanting Sept. 1, while the rain-fed crop will be transplanted mid-October.

“Preparations to plant irrigation tobacco are now at an advanced stage and farmers have enough equipment and water to ensure the success of the crop, said Tobacco Farmers Union Trust President Victor Mariranyika, who urged farmers to expand their hectarage.

Zimbabwean tobacco farmers sold 295 million kg for $895million this marketing season, compared to 206 million kg for $630 million last year.

The government aims to create a $5 billion tobacco industry by 2025 through its Tobacco Value Chain Transformation Plan, which calls for more leaf production, greater value addition and localized funding, among other objectives.

August 23, 2023

CAPHRA Reports on FCTC Harm Reduction

The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) has released its Shadow Report on the (NON)-Implementation of the Framework Convention on Tobacco Control (FCTC) Article 1 (d) on Harm Reduction Strategies. The report is now available to policymakers, regulators in member states and FCTC officials.

The Shadow Report emphasizes the importance of consumer participation in policy making and highlights the benefits of tobacco harm reduction alternatives, including vaping.

“Tobacco harm reduction products have been shown to serve as a method of smoking cessation and as an alternative for smokers who are unable or unwilling to quit smoking altogether,” said CAPHRA Executive Coordinator Nancy Loucas.

“The WHO [World Health Organization] FCTC is meant to be an evidence-based treaty that reaffirms the right of all people to the highest standard of health. However, the current tobacco control measures have extensively promoted the abstinence-only approach, which has contributed to smokers’ inability to make informed choices about safer nicotine products,” said Loucas.

The CAPHRA’s Shadow Report calls for a more compassionate, people-centered, choice-focused and rights-based approach to tobacco control. By involving consumers in the development of healthcare policy and research, clinical practice guidelines and patient information material, the quality of health information and health outcomes for those using tobacco harm reduction alternatives can be improved, according to the organization.

August 23, 2023

JT Merges Dutch Subsidiaries

Japan Tobacco merged its JT International Holdings (JTIH) and JT International Group Holdings (JTIGH) on Aug. 23, the company announced on its website.

JTIGH, which was a pure holding company, will be dissolved, leaving JTIH as the surviving company.

A wholly owned subsidiary of JT International Group Holding, JTIH is based in the Netherlands. Its chairman and managing director is Biljana Ivosevic.

Japan Tobacco expects the impact of the merger between its consolidated subsidiaries to be minor.

August 23, 2023

Foreign Investors Bid for Stake in Eastern Co.

Foreign investors have submitted bids for a 30 percent stake in Egypt’s largest tobacco producer, Eastern Co., reports Ahram Online, citing an Aug. 22 statement from the Egyptian stock exchange.

According to news reports, Japan Tobacco International is one of the investors considering the deal.

Eastern’s majority shareholder, the state-owned Chemical Industries Holding Co. (CIHC), is reportedly studying the offers and conducting due diligence.

In addition to CIHC, which has a 50.95 percent stake, Eastern’s current shareholders include the tobacco company’s employees’ union and South Africa’s Allan Grey Equity Fund, which each own 5.2 percent of the company. The remaining 9 percent is traded on the Egyptian exchange.

In the first nine months of fiscal 2022–2023, Eastern reported a net profit of EGP5.29 billion ($171.22 million), up 24 percent over that recorded in the previous financial year.

The potential sale is part of Egypt’s plans to offer stakes in 32 state-owned companies to strategic investors under the country’s commitments to the International Monetary Fund, which has offered a $3 billion loan.

The nation is struggling with a $17 billion financial imbalance through 2026 and a local shortage of U.S. dollars.

To date, the state assets sale program has generated around $2 billion.

August 22, 2023

Njoy Seeks U.S. Sales Ban of Juul Products

Njoy has asked the U.S. International Trade Commission (ITC) to ban the importation and sale of certain Juul products, including its currently marketed Juul device and Juul pods, citing patent infringements.

“Protecting our intellectual property is critical to achieving our vision,” said Murray Garnick, executive vice president and general counsel of Njoy parent company Altria Group, in a statement. “Juul has infringed upon our patents through the sale of its imported products, and we ask the ITC to impose appropriate remedies in response to these trade violations.”

Njoy has also filed a complaint against Juul in the U.S. District Court for the District of Delaware based on the same patent infringement. Njoy Ace is currently the only pod-based e-vapor product to have received marketing authorization from the U.S. Food and Drug Administration, which deemed the marketing of the Ace device and three Ace tobacco-flavored pods as “appropriate for the protection of public health.”

Njoy’s ITC complaint against Juul alleges trade violations associated with the sale of imported products that, according to Njoy, infringe U.S. Patent No. 11,497,864 and U.S. Patent No. 10,334,881. Njoy acquired the Asserted Patents from Fuma International, concurrently with the settlement of a patent infringement lawsuit filed against the company by Fuma.

Njoy’s complaint is the latest development in a broader intellectual property dispute.

In July, Juul Labs asked the ITC to block sales and imports of Njoy Ace, claiming that the product infringes several Juul patents. It has also filed a complaint against Njoy with the U.S. District Court for the District of Arizona.

Juul Labs complain also targets Altria Group, which agreed to acquire the Njoy in March after exchanging its minority investment in Juul for a heated tobacco product intellectual property license.

August 22, 2023