Blog - Tobacco Reporter

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

ITC Scales Up Sustainable Packaging

ITC reaffirmed that it is scaling up its investment in innovative and eco-friendly packaging solutions that can substitute single-use plastics. The company sustained its plastic neutrality status for the second consecutive year by sustainably managing 60,000 MT of plastic waste in fiscal year 2023, which is more than the amount of packaging utilized.

“At ITC, we have put in place comprehensive interventions for waste management with focus on plastics,” said B. Sumant, executive director of ITC. “Our paperboards, paper and packaging businesses continue to pioneer sustainable packaging solutions that can substitute single-use plastics. Many of our brands and businesses have also innovated to reduce the usage of plastics in line with our commitment to create a positive environmental footprint.”

ITC has pioneered sustainable packaging options through extensive research conducted at its Life Sciences and Technology Centre on laminated and molded fiber platforms, among others. It has developed a range of eco-friendly products, including recyclable paperboards named FiloPack and FiloServe as well as two biodegradable paperboards, OmegaBev and OmegaBarr.

June 6, 2023

Conference of Mayors Approves Flavor Ban

At their annual meeting in Columbus, Ohio, the U.S. Conference of Mayors approved a resolution that supports prohibiting all flavored tobacco products, including flavored e-cigarettes, menthol cigarettes and flavored cigars.

The Campaign for Tobacco-Free Kids (CTFK) welcomed the move. “We are grateful for the strong leadership provided by the sponsors of this resolution, including Mayors Andy Schor of Lansing, Michigan, Justin Bibb of Cleveland, Ohio, Satya Rhodes-Conway of Madison, Wisconsin, and Alix Desulme of North Miami, Florida,” said John Bowman, the CTFK’s executive vice president for U.S. programs, in a statement.

According to the CTFK, youth e-cigarette use remains a public health crisis driven by flavored products. In 2022, over 2.5 million U.S. youth were current e-cigarette users, and 85 percent of them reported using flavored products.

The resolution also supports prohibiting menthol cigarettes.

June 6, 2023

VLN Launched in Three U.S. States

22nd Century Group’s VLN reduced-nicotine content cigarettes will be sold in the No. 1 convenience store (c-store) chain in the U.S. at more than 1,450 corporate locations in Texas, California and Florida. An additional 3,100 franchise-owned stores in these state markets are incentivized to add VLN products with full support from corporate and the national franchise owners organization.

The launch will utilize 22nd Century Group’s new national and regional distribution agreements, including agreements with both the No. 1 and No. 2 c-store distributors in the United States. Stocking orders to distributors will commence in late June, with corporate stores and the first wave of franchise stores expected to begin selling VLN products in early July.

“Adding the country’s No. 1 c-store chain and launching the three largest state markets will significantly and quickly expand the availability of VLN to thousands of additional stores,” said John Miller, president of tobacco products for 22nd Century Group, in a statement. “Franchise stores are already confirming orders to add VLN in conjunction with the corporate rollout, which will include media outreach, in-store offers, signage and a range of education and awareness tools across a variety of channels designed to drive adult smokers to VLN.”

Miller continued, “In addition to rapidly adding corporate and franchise-owned stores in these new markets, we are also scheduling launches with other new regional c-store, pharmacy and military chains, plus regional and state business units of existing chains, that will further expand VLN’s availability in multiple markets. These launch plans give us increased visibility into additional stores and states through the rest of the year, keeping us on track to reach our stated growth goals.”

“We are excited to deliver on our commitment to launch with major c-store retailers and new national-scale distribution resources as we work to rapidly expand sales of our VLN products in up to 18 states by the end of 2023,” said James A. Mish, CEO of 22nd Century Group. “VLN sales are accelerating as planned, keeping us on track to achieve cash positive operations in our tobacco business in 2024.”

June 6, 2023

U.K. Government Draws Fire for Support of Juul

The government in the United Kingdom has been criticized for its “completely inappropriate” endorsement of Juul vaping products, according to The Guardian. Many organizations blame the manufacturer for fueling an “epidemic” of underage vaping in the U.S.

Juul Labs was lauded for its underage vaping prevention efforts in an official briefing circulated by the Department of Health and Social Care about the prime minister’s plan to close a loophole allowing free samples to be given to children, according to media reports.

The press release—which included quotes from Prime Minister Rishi Sunak, England’s chief medical officer, Chris Whitty, and Health Minister Neil O’Brien—portrayed the company as a leader in combating youth vaping, saying it “takes steps to ensure its products do not appeal to and are not used by anyone who is underage and encourages others in the sector to do the same.”

It also included a quote from Joe Murillo, a former tobacco executive and chief regulatory officer at Juul Labs, who praised the U.K. government’s policy and called for more to be done “to combat underage use of these products.”

The briefing—which was sent to journalists before the policy was announced publicly—appears to have directly resulted in positive media coverage for Juul, with Murillo’s quote republished by four national newspapers.

June 6, 2023

Smoking Control Bill Poised for First Reading

Malaysia’s Control of Smoking Product for Public Health Bill 2023 will be tabled in Parliament on June 12, reports New Straits Times. The bill includes the generational endgame (GEG) smoking ban, which bans tobacco sales to those born on Jan. 1, 2007, or later.

“We will table the bill for its first reading in Parliament on June 12,” said Health Minister Zaliha Mustafa. Mustafa also noted that the “improved” bill was drafted after numerous engagement sessions with stakeholders.

“I will be meeting with the Parliamentary secretary and the Dewan Rakyat Speaker (on the date for the second reading), and we will see how we can go from there,” said Mustafa.

The bill is reportedly “more comprehensive” than a previous version and also covers “next-generation” smoking products.

Once passed, the bill would prohibit those that fall under the GEG provision from obtaining and using all types of conventional cigarettes, cigars, loose tobacco and rolled cigarettes. Heated products, however, will not be fully banned until after sufficient education and awareness campaigns have been launched by the ministry.

“This is our soft-landing approach to educate the GEG cohort instead of being punitive,” said Mustafa, referring to an earlier, stricter version of the proposal. “For now, we are suggesting that the law be fully implemented (to include all types of smoking products, including electronic cigarettes) in 2030, after conducting further research and studies.

“We think this is a win-win solution. The government is committed to the implementation of the GEG,” she added.

June 6, 2023

U.S. Combustibles Hamper BAT

British American Tobacco (BAT) reaffirmed its annual revenue and profit forecasts on June 6, but acknowledged that its performance in the United States has been hampered by weaker cigarette demand.

“I am pleased with our performance in a number of key areas,” said BAT recently appointed CEO Tadeu Marroco in his first trading update. “We increased the number of consumers of non-combustible products by a further 900,000 in Q1, driving good revenue growth and further reducing losses of New Categories means we are on track to deliver our £5 billion [$6.2 billion] revenue ambition in 2025, with profitability in 2024, irrespective of the timing of the transfer of our Russian and Belarusian businesses.

“Outside the U.S., combustible brands have been performing well as we address portfolio gaps and optimize pricing. Consistently driving value from our combustibles brands is critical, as they deliver substantial cash returns and generate value to fund New Categories and our transformation.

“We are also making good progress towards de-leveraging our balance sheet, supporting our ambition to sustainably return excess cash to shareholders.

Returning combustibles to consistent value creation is critical to our multi-category strategy in the U.S.

Tadeu Marroco, CEO, BAT

“That said, there are operational issues that will have my focus. Our performance in U.S. combustibles has been disappointing. Returning combustibles to consistent value creation is critical to our multi-category strategy in the U.S. We are taking action, and while it will take some time to carefully and thoroughly implement our plans, our volume share has grown sequentially since the start of the year.”

BAT has been affected by a voter-approved ban on flavored tobacco products in California, but reported increased sales of flavored products in neighboring states.

BAT has been investing in e-cigarettes and heat-not-burn devices as consumers transition to tobacco-free alternatives. While its Glo tobacco heating product’s volume share decreased, sales of Vuse vapes grew.

However, government regulations and the risk of illicit sales pose challenges to these alternatives, according to BAT.

The company maintains its outlook for a 3 percent to 5 percent rise in 2023 organic revenue at constant currency rates and mid-single digit growth in adjusted earnings per share.

June 6, 2023