Blog - Tobacco Reporter

Vietnam Urges Stricter Control of New Products

The Ministry of Health in Vietnam has called for stricter control of e-cigarettes and heated tobacco products that are not licensed in the country, reports VnExpress International.

In a recent document addressed to various government ministries and committees, the ministry asked for increased communication about the dangers of such products and for stronger measures to be taken against their purchase, sale, and trading.

Despite not being allowed in Vietnam, these products are becoming increasingly popular and are widely available on the internet. According to statistics from the World Health Organization, a growing number of Vietnamese students are using e-cigarettes, with 2.6 percent of those aged 15-17 vaping in 2019, and a 2022 survey revealing that 3.5 percent of those aged 13-15 use e-cigarettes.

There have been reports of students being poisoned by nicotine and liquids used in these products. The ministry also highlighted the risk of these products leading to social problems and addiction-related crime.

May 7, 2023

Cavendish Plans More Shisha Auctions

Cavendish Lloyd Zimbabwe (CLZ) plans to hold two more shisha auction sales, according to NewsDay.

CLZ is the first company to hold an auction sale of shisha tobacco.

“This tobacco has extremely low nicotine,” said Koen Monkau, CEO and founder of Cavendish. “So our target with the farmers is to grow a maximum nicotine crop of 1 percent while the traditional crop that you see is traditionally anywhere between 2 percent and 3 percent with sugars ranging from, let’s say, 14 percent to 20 percent. This is less than 1 percent nicotine and up to 30 percent sugar.”

“We are going to do three or four (auction sales) in total, and this is number two,” he added.

Cavendish sold between 60 bales and 80 bales on the first day at auction, each bale weighing between 90 kg and 100 kg. Sales increased to 300 bales on the second auction day.

The company is working with about 13 farmers who supply the crop.

“The cost of growing is about half that of the traditional crop. If you look at a commercial farmer in Zimbabwe, the cost of growing per hectare of the traditional tobacco is anything between US$12,000 and $13,000, and this (shisha) is about $6,000 to $7,000, so it is about half the cost of growing. However, the yield per hectare is slightly less,” Monkau said.

“So, when you look at the return on investment for the farmer, it’s definitely much better than the traditional crop.”

Cavendish is targeting the European and Arab markets with the final product. “The original source of this style of tobacco is Europe, but from there, it’s sold worldwide. So we are basically competing with countries such as France, Poland and Germany. These are the major producers of this style of tobacco in Europe. And we see that there is stabilization or a slight decline in what they are growing for whatever reasons, so that means there is an opening for us to enter that market as well,” Monkau said.

“For the last two seasons, there has been a shortage of this style of tobacco. Traditionally, most of this tobacco is being used in the Middle East because that is where most shisha is coming from. But what we see now, even in Africa or Zimbabwe, recently, a small manufacturer started to make a small product that is going into the water pipe.”

May 5, 2023

Israel’s Mulls Vaping Restrictions

Israel’s health ministry discussed the possibility of banning marketing of electronic cigarettes, according to i24 News. The ministry said, “options are being examined due to two difficult cases and the widespread phenomenon,” referring to the increase of youth using e-cigarettes.

The ministry is considering the possibilities of banning the marketing of electronic cigarettes altogether, banning only those flavored or requiring dissuasive images on packaging.

May 5, 2023

Geneva to Ban Smoking in Some Outdoor Areas

Smoking will be banned in some outdoor public locations in Geneva beginning June 1, reports SWI. Bus stops, playgrounds and outside of schools are included in the ban.

The government has modified the law to create “healthy outdoor environments that are smoke-free.”

Under the law, smoking will be banned within a 9 meter perimeter of playgrounds, schools and day care centers, and smoking zones will be created at least 9 meters from outdoor swimming pools. Smoking will be completely banned at local bus stops.

Geneva Parliament agreed to the change in January 2022. Those caught breaking the law will be subject to a fine.

Since May 1, 2010, smoking has been banned in Switzerland in enclosed spaces when they are open to the public or serve as a workplace for more than one person. Smoking is banned in restaurants, public buildings and offices as well as on public transport. Smoking is permitted in separate smoking rooms, outdoors and in private homes.

Home to the global headquarters of Philip Morris International and Japan Tobacco International, Switzerland has historically lagged behind its neighbors in anti-smoking legislation, but that is starting to change.

In 2022, Swiss voters approved a referendum limiting tobacco and e-cigarette advertising.

May 5, 2023

Cuban Tobacco Growers Reinvest in Tractors

Tobacco producers of Havana cigars plan to reinvest their income in the purchase of tractors to boost the economic sector in Cuba, reports Prensa Latina.

Granma newspaper published a story referencing the acquisition in Pinar del Rio of 270 tractors this year. The farmers were able to acquire the tractors through a financing scheme in which they receive part of the payment for their harvest in foreign currency.

Pinar del Rio produces 60 percent to 70 percent of the tobacco harvest for the country. Marino Murillo, president of the Tabacuba Business Group, stressed the importance of the delivery of the tractors to the region. Pinar del Rio received a first delivery of 45 tractors, and another batch of more than 20 tractors was sent to the provinces of Sancti Spiritus, Villa Clara and Cienfuegos.

May 5, 2023

ITC Appoints Frank Silva as President and CEO

Imperial Tobacco Canada (ITCAN) appointed Frank Silva as president and CEO, effective April 1, 2023.

Silva has a long history with ITCAN, and its parent company BAT, that includes roles at local, regional and global levels. Silva has served as regional marketing director for BAT’s Asia-Pacific and Middle East region, vice president of marketing and sales at ITCAN and marketing director for BAT U.K. and Ireland. At the global level, he was instrumental in developing BAT’s harm reduction strategy, which is core to the company’s expansion into new categories, currently focused on less harmful alternatives to smoking.

Most recently, Silva has been working with Reynolds American, BAT’s division in the United States. During that time, Silva was senior vice president of digital and consumer experiential marketing, president of Reynolds sales and trade marketing services as well as senior vice president of Reynolds premium brand portfolio, Newport, Camel and Natural American Spirit.

“I am thrilled to return home to ITCAN as president and CEO,” said Silva. “I would like to extend my gratitude to my predecessor, Ralf Wittenberg, for his hard work and leadership over the past three years. He has left me a solid business with incredible people, and I believe we are well positioned to continue [to] demonstrate leadership in the tobacco harm reduction space.’’

Ralf Wittenberg will return to BAT’s global headquarters in London as commercial director of nicotine reduced-risk products.

With his experience in tobacco harm reduction, Silva will be pivotal in continuing ITCAN’s focus on offering a portfolio of less harmful alternatives to adult smokers. He believes that with the right regulatory framework, a continued increase in the acceptance of tobacco harm reduction and the right enforcement to ensure nicotine products are not sold to youth, Canada can reduce smoking rates below 5 percent before Health Canada’s stated goal of 2035.

“I am excited by what the future holds for ITCAN. As a Canadian, I am vested in the company and in the country. I believe we have the right strategy and the best people to continue our transformation,” continued Silva.

May 4, 2023

PMI Holds Virtual Annual Meeting

Philip Morris International held its 2023 annual meeting of shareholders. Andre Calantzopoulos, executive chairman of the board, addressed shareholders and answered questions. Jacek Olczak, CEO, gave a business presentation, which included an overview of PMI’s strong performance in 2022 and encouraging start to 2023; robust business fundamentals and rapid progress on its smoke-free transformation; excellent momentum in the heat-not-burn and nicotine pouch categories; further progress on sustainability, with continued recognition by leading external stakeholders; and commitment to rewarding shareholders over time.

“Our smoke-free transformation continued apace in 2022, with the growth of smoke-free products to nearly one-third of total net revenues for the year and the achievement of two important milestones—the acquisition of Swedish Match and the agreement to gain the full rights to commercialize IQOS in the U.S. in April 2024,” said Olczak.

“As a global smoke-free champion with leading brands IQOS and Zyn, we are well positioned to further accelerate our transformation in the years to come to the benefit of the company, our shareholders, other stakeholders and public health,” he said.

Approximately 81 percent of the shares entitled to vote were represented at the meeting in person or by proxy. The shareholders elected 12 nominees for director; approved, on an advisory basis, the compensation of named executive officers; approved, on an advisory basis, a one-year interval for the vote on the compensation of named executive officers; ratified the selection of PricewaterhouseCoopers SA as independent auditors; and voted against the shareholder proposal. Final voting results will be included in a Form 8-K that PMI will file with the SEC in the coming days.

An archived copy of the webcast of the meeting will be available for approximately one year from the date of the meeting. The presentation slides and script will be available as well.

May 4, 2023

CVA Says Flavors Not Cause of Youth Vaping

Recent claims by health advocates blaming flavored e-cigarettes for the rise in youth vaping are unfounded and lack proper context, according to the Canadian Vaping Association (CVA). The real issue, according to the advocacy group, is the lack of enforcement of the illicit trade and individuals buying for minors.

“The CVA stands by its position that flavors are not the cause of youth vaping,” the CVA wrote in a statement. “The problem is the sale of vaping products to minors through the black market and straw sale. The industry has taken a proactive approach by implementing stringent age verification measures for our membership and [is] actively working with law enforcement to prevent such sales.”

“I will be reaching out to all the health advocacy groups to extend an invitation to form a working group. Our intention is to work together to address these complex issues and find practical and enforceable solutions. Canadians deserve to have all stakeholders working together for the betterment of public health,” said Darryl Tempest, government relations counsel to the CVA board.

The CVA believes that policies must be evidence based and consider the interests of all stakeholders. The CVA encourages health organizations to work with industry leaders and regulatory bodies to find common sense policies that will protect youth while supporting the health outcomes of adults battling addiction.

May 3, 2023

France Considers Ban on Disposables

The French government may ban disposable electronic cigarettes by the end of this year, Health Minister Francois Braun said on May 3, according to Barron’s.

“I’m in favor of a ban,” Braun told broadcaster France Inter, adding that the devices “lead some of our young people toward using tobacco.”

“Smoking is a scourge; it kills 75,000 people per year” in France, he said.

Although President Emmanuel Macron’s government has no majority in Parliament, ministers would “work with lawmakers” to reach a deal on a ban, Braun said.

It could be enacted “before the end of this year,” he added.

The ban may form part of a new anti-smoking plan the health ministry is working on for the coming five years.

Sweet-flavored and fruit-flavored one-use electronic cigarettes—known as “puffs” in France—are sold in brightly colored packaging costing an estimated €8 ($8.83) to €12 for 500 puffs.

May 3, 2023

Reynolds Warns Shops to Stop Selling Flavors

R.J. Reynolds has threatened to sue several small vape shops in New Jersey and Alabama if they continue selling favored vaping products.

Letters sent by Reynolds and obtained by STAT warn the retailers that failure to comply could result in “legal action and the costs, attorneys’ fees and adverse publicity.”

The letters also warn that the shops are violating local laws regulating the sale of flavored tobacco.

The New Jersey letter copied the county prosecutor where the vape shop is located in an apparent attempt to notify the local authorities of the violation.

The letters are the latest step in Reynolds’ campaign to force a crackdown on illegal vaping products.

In the article, Clive Bates, a tobacco harm reduction advocate, criticized Reynolds.

“I do not think Reynolds should be hounding vape shops for selling lifesaving products to their regular customers,” Bates wrote in an email to STAT. “It should not be picking on little guys but pressing federal bureaucracies to do their job and do it better.”

In February, Reynolds affiliate RAI Services Co. submitted a citizen petition asking the U.S. Food and Drug Administration to adopt a new enforcement policy directed at flavored “illegally marketed disposable electronic nicotine-delivery system” products.

The petition was filed on Feb. 6 and posted by the FDA to Regulations.gov for public comment on Feb. 8.

May 3, 2023