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  • Smart Connection

    Smart Connection

    Illustration courtesy of Maschinenbau

    Koehl’s new communication platform connects field-level tobacco machinery with the Cloud.

    By Stefanie Rossel

    Communication is key—not only in everyday life but also on the factory floor. On the road to Industry 4.0, the Industrial Internet of Things (IIoT) is an important milestone. The digital mapping of production plants and their connection to systems for collecting and evaluating production data is the basis for smart analysis methods to optimize production processes. To keep up with the fast-paced development of new ideas and concepts that the fourth industrial revolution brings about, manufacturing companies are confronted with the difficult task of driving their digital transformation.

    Modern tobacco manufacturing equipment comes with built-in features that allow it to communicate data on performance, settings, history and so on. However, the secondary machinery communication landscape in most tobacco factories is highly fragmented, both for machine-to-machine and machine-to-higher-systems data streams. Over the years, many production lines have formed a heterogenous machine landscape. The individual plant components often comprise controllers from different suppliers and generations. Over time, physical media, protocols and data formats, sometimes proprietary, have accumulated, leading to unnecessarily complex integration efforts. Fragmentation also limits the opportunity to extract manufacturing insights from the machine data.

    To solve this problem, the world’s four leading cigarette manufacturers—Philip Morris International, BAT, Japan Tobacco International and Imperial Brands—and the OPC Foundation created a working group about five years ago to describe general requirements for manufacturers for primary and secondary machinery. “OPC” stands for Open Platform Communications. The OPC Foundation is responsible for the development and maintenance of OPC UA, the interoperability standard for the secure and reliable exchange of data in the industrial information space and in other industries. It is a platform-independent, open and license-free communication platform and ensures the seamless flow of information among devices from multiple vendors.

    The jointly developed companion specification for the tobacco industry, named Tobacco Machine Communication (TMC), is based on the OPC UA information model and aims at harmonizing data exchange and interoperability requirements for the common benefits of both cigarette manufacturers and original equipment manufacturers (OEMs). It seeks to create interoperability between the various OEMs. The main objective of the companion specification is to provide information-modeling concepts and object libraries that can be applied to model a complete production work center. It covers machine configurations, product flows, setup, service, live status and historical information and can be applied to conventional tobacco products as well as products in the heated-tobacco environment. The OPC UA server of the work center can expose information in a harmonized way to upper-level systems or to other compliant work centers. While the working group started out by focusing on secondary machinery, the new standard 2.0, which was introduced in May, also covers primary equipment.

    The TMC standard can be downloaded from the OPC website. All new tobacco machinery delivered today needs to be compliant with the standard.

    Enhancing Efficiency

    Arno Fries

    However, cigarette-making equipment is known for its longevity, which means there are many shop floors with equipment that was developed before the standard was introduced. For such factories, Koehl Maschinenbau, a Luxemburg-based supplier of processing and logistics equipment for the tobacco industry, has designed a machine-to-cloud solution, the IIoT Server. Based on the TMC companion specification as a platform, the application server enables vertical data transmission to a business intelligence system (BIS) without, in the best case, changing the components’ programming. This way all data accumulated on the shop floor can be semantically processed in the same way to collect and analyze it centrally. The server collects and handles data at the shop floor level and forwards it to a Cloud or Fog environment where the data is stored, analyzed and archived.

    “For the customer, this leads to an increase in efficiency and a reduction of costs,” explains Arno Fries, technical director of logistics and information systems at Koehl. He heads the company’s manufacturing IT department, which implements solutions and products for intralogistics and production logics. The IIoT Server is a proprietary development commissioned by one of Koehl’s tobacco clients. “It’s an easy, flexible, cost-effective and future-proof way to integrate and digitalize established machines into the customer’s preferred Industry 4.0 ecosystem,” says Fries. “An intelligent production optimizes workflows, maintenance, energy consumption and service management.”

    The ability to interact with various programmable logic controllers (PLCs) in a heterogenous production environment is key to standardized data processing in the IIoT, says Fries. “The PLC connection module of Koehl’s TMC server is based on a highly flexible and exchangeable driver technology that is used for communication with different PLCs and different protocols. Drivers are available for the most common PLCs, such as Siemens Step-(300, 1200, 1500) or Beckhoff or for protocols, for example OPC UA.”

    Easy Installation

    The IIoT Server allows for collection of data from all machinery, whether new or old, is OEM independent and provides tailor-made solutions for equipment that is not standard. Transformation and normalization of data take place just in time. There are no programming changes of existing PLCs required. The web-based configuration enables central configurations for all instances. The server consists of a small data processor that fits into a control cabinet, which is required to have two Ethernet ports.

    Depending on the customer’s requirements, the IIoT Server can be installed in a decentralized or centralized architecture. In a decentralized installation, each PLC is connected to a separate server unit, with data being transferred from the production network to the cloud in a secure way. In a centralized environment, all PLCs of a production line or an entire plant are connected to a central IIoT Server unit, which according to the company can be easily integrated into existing server or virtualization architectures. Either way, hardware requirements are minimal.

    Implementation is uncomplicated, according to Fries. “The data to be transferred and their respective addresses are set once for each PLC through a configuration tool. The storage of the data retrieved by the various controllers and their depiction in the TMC information model is the main characteristic of Koehl’s server application. In addition, it allows for storage of data, which the PLC can neither provide nor store. After configuration, the TMC server runs in the background and provides the configured data as TMC objects to each OPC client for further processing. The operator is not involved unless he wants to add a further configuration.”

    Koehl’s server can either be used if existing production lines are to be connected or if an OEM needs a bridge between a machine and the IT level that is compatible with the TMC standard and that he can’t or won’t realize himself.

    Successful Pilot Project

    The pilot project was installed at an Other Tobacco Products (OTP) manufacturer’s site. Three pilot lines out of nine OTP lines were selected for connection to the cloud-based customer BIS via the TMC standard. For each system, an industrial inter-process communication was placed in the respective control cabinet. “With these having a second network adapter, it was not necessary to take the PLCs out of the production network. The PLCs are therefore accessed via a different network than the data collected here,” relates Fries. “In order to be able to compensate failures of the higher level system, the IIoT Server also allows for the archiving of data movements and changes over a longer period of time.”

    Across machines, data about machine running time, downtime and root cause analysis is now collected and can be accessed by the BIS via the TMC standard. Information about material rejects, production defects, material turnover and machine efficiency as well as predictive maintenance and machine configuration changes are also provided.

    “The greatest challenge was the collection of data from existing production lines with different controllers without program changes in the PLC,” says Fries. “After we had collected the data, it was validated by the machinery operators, and since then, system has been running smoothly.”

    Following the successful pilot, Koehl has been ordered to roll out the system to the customer’s remaining OTP lines. Fries observes increasing interest for his company’s solution in the industry. “If a tobacco manufacturer has several locations and lines and a fully automated production, the IIoT Server is ideal because it not only allows to comply with the TMC standard but also to control and evaluate processes.”

  • Leaving No Trace

    Leaving No Trace

    Photo: McAirlaid’s Vliesstoffe

    McAirlaid’s Genia cigarette filters decompose in a matter of weeks rather than years.

    By George Gay

    Some time ago, Rachel Roddy, a food writer specializing in Italian cuisine, wrote in The Guardian newspaper’s Feast magazine that 80 percent of recipes could be improved by omitting the tomatoes usually included. Being a renowned tomato-phobe, I was delighted with this story and set out on a campaign to have the message more widely disseminated and acted upon—a campaign that was met with little success, I’m sorry to say, and that fell by the wayside.

    But I was reminded of Roddy’s piece recently when reading the McAirlaid’s Vliesstoffe’s website, which, at one point, poses an intriguing question: Is it possible to achieve more by omitting something? Of course, I was a convert and knew the answer immediately. Yes. Leave out the tomatoes!

    While answering yes to its own question, McAirlaid’s would not be too happy with my response, I think, because part of its business is focused on food packaging, and tomatoes probably figure in the makeup of that business. But I’m getting ahead of myself. This piece mainly concerns another aspect of the company’s business: cigarette filters—specifically, cigarette filters that offer tobacco-smoke taste similar to that provided by cellulose acetate filters but that are manufactured using only pure cellulose, free from bonding agents, and that, therefore, decompose in a matter of weeks rather than years as is the case with cellulose acetate products.

    A Patented Process

    Katja Selle

    McAirlaid’s specializes in manufacturing nonwoven absorption fleeces from pure, nonchlorine-bleached cellulose fibers using only a patented “airlaid” thermo-mechanical process to bond the fibers. In other words, the company omits from its SuperCore fleece the nonabsorbing bonding agents typically used to make fleeces, allowing SuperCore to achieve greater absorption and fluid distribution than is achieved using traditionally bonded fleeces.

    The company, which sells its SuperCore fleece either as a raw material or as finished products, has four production sites in Germany and one in the U.S. Associate Sales Director Katja Selle told me during an email exchange that the company even had its own engineering department with machine design and building capabilities, which allowed it to develop “innovative and unique technologies.” Currently, it operates with five airlaid machines to produce its SuperCore fleece and more than 100 processing machines to service the particular requirements of the various markets with which it is involved and which it designates as food packaging, hygiene, medical, cigarette filters and home and garden.

    And while McAirlaid’s products may rightly be described as environmentally friendly, so, too, can its processes. The company’s cellulose production, which is certified by the Program for the Endorsement of Forest Certification, operates with low carbon dioxide emissions and without the use of freshwater—and therefore without creating wastewater. Production buildings are climate controlled by means of efficient heat recovery systems.

    McAirlaid’s, which now has more than 500 employees and customers in more than 70 countries, was founded in 1997 in Steinfurt, North Rhine-Westphalia, Germany, with production at its Heilbad Heiligenstadt factory starting the following year. It opened its third factory in Virginia, USA, operating as subsidiary, McAirlaid’s Inc., in 2006 and set up a new marketing organization offering Genia cigarette filters in 2017. 2020 saw the start of its first face mask machine.

    The material that makes up Genia cigarette filters was developed by McAirlaid’s and is made from 100 percent EN-13432-certified cellulose produced using the same airlaid technology that is used for producing the company’s other products, though modified to meet the specific needs of the tobacco industry (EN-13432 is an industrial compostability standard). It is offered bleached or unbleached and is said to be available in just about any filter rod specification, including those suitable for heat-not-burn products. Genia filters are already part of tobacco cigarettes, filtered cigarillos and hemp cigarettes that are available in Europe, and, currently, tests and developments are being carried out in conjunction with many small and large manufacturers in the cigarette, cigarillo and roll-your-own segments.

    McAirlaid’s biggest factory, at Berlingerode, Germany

    Ahead of its Time

    Development of these cigarette filters has been a long time coming. The founder of McAirlaid’s, Alexander Maksimow, recognized the littering problem associated with cigarette butts in the 1990s, at a time when, according to Selle, the market wasn’t ready to accept a change to more sustainable products. Once started, development took several years but was accelerated with the arrival of McAirlaid’s own rod-making machine, which allows it to manufacture efficiently at one of its German factories sample rods for testing by prospective adopters of Genia filters. This is important because Genia filters are always custom made for individual cigarette manufacturers after a joint development process aimed at identifying the most appropriate product to replace a cellulose acetate filter.

    And things are likely to move much quicker in the future. The major filter producers are said now to have similar machines that run equally well as the one developed by McAirlaid’s, and the company has worked with filter-rod-machine builders to optimize the use of airlaid materials through their machines. Additionally, Selle said, McAirlaid’s airlaid material was being manufactured into filter rods and sold by global filter producers.

    Selling Genia filter rods could be seen as pushing at an open door. These filters are price competitive and closely mimic the cellulose acetate products they are replacing, in respect of both their smoke-modifying and taste retention characteristics. But perhaps the major selling point is the fact that while carelessly discarded traditional cellulose acetate cigarette filters take up to 15 years to break down, Genia cigarette filters are biodegradable and compostable and break down within a few weeks of being discarded. Of course, McAirlaid’s emphasizes that the best option would be for smokers not to carelessly discard cigarette butts, but we are where we are, and a note on the company’s website indicates that, annually, carelessly discarded butts would fill up to 253,000 cargo containers. The number of containers that would be needed to house the butts carelessly discarded over the years that cellulose acetate filters have been widely used does not bear thinking about.

    The construction of the Genia material is important from the point of view that it does not contribute to the ever-growing problem caused by micro-plastics being released into the environment. And it is important from the point of view that cigarette manufacturers need to comply with plastics reduction regulations in certain jurisdictions—regulations that are bound to become more widespread. At the same time, the material’s ability to break down quickly is important because it reduces the risk of butts being swallowed by water-dwelling or land-dwelling creatures. And it is important from the point of view of aesthetics, given that cigarette butts have long been an eyesore for many people, though one that seems to be reducing with the reduction in smoking in at least many Western cities.

    Opportunities Ahead

    With these advantages in mind, I asked Selle whether she thought there would be good opportunities for McAirlaid’s to grow its cigarette filters business in the future even though cigarette consumption overall might go down. She started by saying that her company was currently experiencing, especially in Europe, increased demand for sustainable alternatives to cellulose acetate, something that was being driven by various factors, one of which stemmed from a new European Commission regulation, the Single-Use Plastic Directive, which was put in place in July last year. Under the provisions of this directive, there was a package-marking requirement for products that included filters containing plastic of any kind, a designation that encompassed cellulose acetate filters but not Genia airlaid filters. In addition, there was the Extended Producer Responsibility policy, which levied a littering tax on, among any number of products, cigarette filters containing plastic. Again, Genia was exempt from the requirements of this policy. At the same time, McAirlaid’s was seeing an increased demand by consumers for sustainable products, so it was likely that demand would keep increasing.

    In the U.S., the situation was different, Selle added. There, the Food and Drug Administration regulated the tobacco products sector, so moves toward the use of sustainable cigarette filters would first require the FDA to accept their use. This would come either through changes to their rules or through tobacco manufacturers agreeing to submit new cigarettes with sustainable filters through the premarket tobacco product application route. Consequently, McAirlaid’s was encouraging any U.S. tobacco company wishing to develop new products to consider a trial using Genia filters. For one thing, emerging initiatives, such as California’s proposed single-use plastic regulations, were likely to increase the momentum toward more sustainable materials.

  • A Curious Case

    A Curious Case

    Photo: steheap

    The U.S. Food and Drug Administration’s marketing denial order for Juul may have been a political decision.

    By Stefanie Rossel

    In June, long-simmering criticism of the way the U.S. Food and Drug Administration is handling premarket tobacco product applications (PMTAs) culminated in a public uproar. “The whole regulatory process is becoming surreal now,” wrote Clive Bates, an independent public health and sustainability advocate, on his blog The Counterfactual. Bates was referring to the agency’s June 23 marketing denial orders (MDO) for all currently marketed Juul Labs products in the United States and compared them to the FDA’s previous marketing authorization of 22nd Century’s low-nicotine combustible cigarette. “No one could make a vape product even remotely as toxic as a cigarette,” Bates stated, “but guess which one got the green light.”

    In its press release, the FDA said that Juul’s applications lacked “sufficient evidence regarding the toxicological profile of the products to demonstrate that marketing of the products would be appropriate for the protection of the public health.” In particular, some of the company’s study findings raised concerns due to insufficient and conflicting data, the agency claimed. The problems of genotoxity and potentially harmful chemicals leaching from Juul’s propriety e-liquid pods had not been adequately addressed in the applications, according to the FDA, thus precluding the agency from completing a full toxicological risk assessment of the products.

    However, the agency admitted that to date it had not received clinical information to suggest an immediate hazard associated with the use of the Juul device or Juul pods. A further reason for the MDO, the FDA wrote in a statement, was that there was “no way to know the potential harms from using other authorized or unauthorized third-party e-liquid pods with the Juul device or using Juul pods with a non-Juul device.”

    Michel Mital, acting director of the FDA’s Center for Tobacco Products, said that the agency was tasked with ensuring that tobacco products sold in the U.S. met the standard set by the law but that responsibility to demonstrate that a product meets those standards was with the manufacturer. “As with all manufacturers, Juul had the opportunity to provide evidence demonstrating that the marketing of their products meets these standards,” she said. “However, the company did not provide that evidence and instead left us with significant questions.”

    The FDA’s Volte-Face

    One day later, Juul Labs requested and was granted an emergency stay of the FDA order by the U.S. Court of Appeals for the D.C. Circuit to give the judges time to evaluate the merits of Juul’s appeal. In its court filing challenging the FDA ruling, the company called the FDA’s order “extraordinary,” “discriminatory” and “unlawful” and said that it would suffer significant irreparable harm without a stay.

    The agency, Juul Labs claimed, had overlooked more than 6,000 pages of data in the applications on the aerosols that users inhale. The company, which argued that it has helped 2 million adult smokers quit traditional cigarettes, also suggested that the FDA’s decision was influenced by political pressure—through letters and at hearings, the company said in its filing, members of Congress pressed FDA officials to commit that Juul products would not be authorized. Furthermore, the manufacturer questioned the agency’s handling of the MDO announcement, which had been leaked to the media before it was officially announced.

    On July 5, the FDA backed down and temporarily halted its ban on Juul Labs products while the manufacturer appeals the agency’s decision. The agency said it had determined that there were scientific issues unique to the Juul application that warranted additional review. The FDA stressed that its suspension did not mean rescission of the MDO. While the stay technically doesn’t allow Juul to continue selling its products, the FDA later explicitly stated, for the first time, that it did not intend to take enforcement action against the Juul products subject to the MDO.

    Different Treatment

    The removal of Juul products from the U.S. market would have far-reaching implications. The company had experienced a fairy-tale rise from a small business to U.S. market leader of the vape category. It was said to have revived the stagnating U.S. vape market and became so popular that the term “Juuling” became almost synonymous with “vaping.” Coming in a sleek design and with a nicotine salt-based pod system, Juul products were easy to use and able to satisfy the nicotine cravings that smokers previously satisfied with cigarettes. At the height of its success, Juul Labs accounted for more than 80 percent of U.S. nicotine vape sales. In 2018, it sold a 35 percent stake to Altria. If its products were to exit the market, smokers seeking to switch as well as vapers would be left with a mere handful of FDA-approved, but decidedly less popular, vape products.

    In a letter to investors, the financial services company Morgan Stanley wrote that a Juul MDO would create opportunities for other reduced-risk products that have already received PMTA approval, most notably BAT, which recently overtook Juul as the leading U.S. vape manufacturer through its Vuse brands with a market share of more than 33 percent. In recent months, the FDA has authorized several vape products for marketing in the U.S. market, among them Njoy and Logic variants.

    While tobacco control activists welcomed the FDA’s decision, vaping advocates were shocked, and the events following the MDO sparked much speculation. The agency treated Juul’s application very different from those submitted by competing vaping companies, according to critics. Following its normal process, the FDA should have sought answers to its “significant questions” about Juul’s application through a deficiency letter. Instead, the FDA simply banned Juul’s products. Also, the agency did not rescind its MDO for Juul as it had done for other companies after admitting potential errors. In addition, the FDA in its MDO held Juul responsible for third-party or counterfeit Juul products—a task that belongs to the regulator. 

    Punishing Past Mistakes

    “It looks like the FDA searched for a pretext for denying Juul’s products, and this is the best they could come up with,” wrote Bates. The MDO seems to be designed to punish Juul for past mistakes. When the company entered the U.S. market in 2015, its early ad campaigns were heavily criticized for targeting youth.

    Critics held the company single-handedly responsible for triggering a youth vaping “epidemic.” By the time Altria purchased a stake in Juul, the e-cigarette manufacturer was facing a sea of lawsuits. Around 2,000 cases have been filed against the company, by cities, counties, school districts and states, claiming that Juul purposefully addicted teenagers to its products with high-level nicotine pods.

    Although youth vaping, which was never high on a daily basis among youth who have never smoked, has been declining since 2019 and vaping adolescents have turned to other, mostly disposable products such as Puff Bar, Juul Labs continues to bear the blame for youth vaping in the popular imagination.

    Over the past years, the company has gone out of its way to please anti-vaping advocates—perhaps mistakenly, according to critics. Instead of challenging the misinformation spread by its opponents, Juul removed its flavored pods from the market before the law required this.

    FDA Processes Questioned

    While the MDO decision surprised many, the FDA’s subsequent administrative stay later made the story only more curious. Almost immediately querying a decision that the FDA had taken two years to reach appeared odd at best. Experts assumed the FDA realized that its arguments were weak and wouldn’t stand up to a legal challenge. The withdrawal leaves the agency with two options: issuing a new, amended MDO or admitting that it has erred, releasing a full rescission and putting Juul back in scientific review.

    In an interview with Filter, Bates said the PMTA process was “wide open to abuse” as the agency can set arbitrary standards for what it considers acceptable.

    In mid-July, the American Vapor Manufacturers Association (AVMA) asked the U.S. Department of Health and Human Services inspector general to investigate whether the FDA’s MDOs were driven by political pressure. “Manufacturers are routinely meeting the PMTA requirements to scientifically demonstrate how their products are appropriate for the protection of public health,” wrote AVMA President Amanda Wheeler. “Despite compliance, the agency isn’t approving the vape products sought by adults who want to quit smoking. The Office of Inspector General should open the door and hold the FDA accountable to its standards.”

    In recent months, the FDA has faced increasing public and congressional scrutiny not only over its regulation of novel nicotine products but also for its role in a shortage of infant formula. On July 19, FDA Commissioner Robert Califf announced an external review of the agency’s offices on food safety and tobacco regulation.

    The agency has tasked the Reagan-Udall Foundation with an assessment of the resources, procedures and organization of the offices on food and tobacco as well as parts of the Office of Regulatory Affairs, the division that conducts inspections. Whether the measure will improve Juul’s odds remains to be seen. The initial evaluation of the reviewing process was scheduled to be completed within 60 days.

     

  • A True Transformation

    A True Transformation

    Photo: BAT

    To BAT, “A Better Tomorrow” is more than a catchy slogan.

    By Stefanie Rossel

    Flora Okereke

    Flora Okereke is head of global regulatory insights and foresights at BAT, responsible for the analysis and forecasting of international regulatory developments on behalf of the company’s 180-plus markets. She has previously held several senior country, regional and global roles at BAT, including legal, corporate and regulatory affairs director for West Africa; head of regulatory affairs for Africa, the Middle East and Eastern Europe; global head of regulatory strategy and engagement; and senior director of government affairs and international policy at Reynolds American Incorporated Services, a subsidiary of R.J. Reynolds Tobacco based in Washington, D.C. She is an advocate of evidence-based regulation. Okereke was called to the Bar of England and Wales (Middle Temple) and later admitted as a solicitor by the Law Society. Tobacco Reporter caught up with Okereke to discuss her views on the remarkable transformations taking place at BAT and throughout the tobacco industry.

    Tobacco Reporter: It has been some years since BAT set out on its transformation journey from a single-category company to a multi-category player. In March 2020, it announced its new corporate purpose: to build a better tomorrow, with the aim to reduce the health impact of its business through offering a greater choice of reduced-risk products. You have been with BAT for more than 20 years—can you please describe how working for BAT has changed since the transformation process started?

    Okereke: I’ve had the great fortune of working in most parts of our business over the years across every region of the globe. Given the long history and focus on combustibles, the transformation since we launched our first e-cigarette in 2013 is nothing short of miraculous. We have seen the emergence of a multitude of products that are giving adult consumers compelling choices as an alternative to combustibles. And this is a very good thing. Recognizing the strong potential of these new products to reduce the risk in comparison to continued smoking, our CEO invited everyone in our organization in 2020 to embark on a transformation journey to reduce the health impact of our business. The goal of this transformation journey is what we call “A Better Tomorrow.”

    Being part of this transformation has engaged employees across the business like never before. There’s a real rise in energy and a renewed commitment and sense of pride amongst our employees as we work together to reduce the health impact of our business.

    During the recent Global Forum on Nicotine, you participated in a panel debating whether the industry’s transformation is a myth or reality. Being inside a company during the transformation process, what do you think?

    The transformation is real, and we are making tangible change. We are laser-focused on providing adult consumers with a wide range of less risky* products. We are making significantly increased investments year-on-year in reduced-risk products—in 2021 alone, we invested £496 million [$602.73 million]. We are proactively communicating with our adult consumers, encouraging them to switch through over 1 billion inserts to date and over 136 peer-reviewed scientific publications on product manufacturing safety and performance standards of our products.

    In parallel, we are expanding availability of reduced-risk products, which are in 57 countries to date, 20 of which have the highest smoking prevalence. We are actively engaging regulators and public health and governments advocating for a regulatory and fiscal framework that recognizes the important role of tobacco harm reduction and is designed to incentivize adult smokers who would otherwise continue to smoke to switch.

    We aim to switch 50 million adult smokers to reduced-risk products by 2030. E-cigarettes were only invented in 2003, by a Chinese pharmacist, so when we see the level of progress BAT is making in this area, I think we are doing pretty well.

    How can we verify that tobacco companies are really transforming?

    For BAT, “A Better Tomorrow” is a world where smokers who would otherwise choose to continue to smoke have the option to switch to less risky alternatives to combustible tobacco. But A Better Tomorrow also represents a renewed commitment by BAT to improve society for all those that are sharing the road in our transformation journey—we are measuring ourselves against the expectations of our customers, our employees, our shareholders, our government partners and the public.

    We are setting clear and ambitious goals, measuring ourselves and sharing progress with all of our stakeholders. And we are making significant progress in support of those goals.

    We have set a goal of 50 million consumers of our noncombustible products by 2030. Today, over 20 million adult consumers have chosen to use our many reduced-risk products, with 14.6 percent of group revenue delivered by noncombustible products.

    We also aim to achieve at least £5 billion in New Category revenues by 2025. In a few short years, we have built a £2 billion New Category revenue business, and we are confident of more than doubling this to reach our revenue target by 2025.

    In your panel presentation, you said that the core of the change was the transformation of BAT’s portfolio, but behind it, this meant that smokers are encouraged to switch and that BAT is therefore doing something for society. While this is working quite well in the developed world, what can tobacco companies do to repeat this success in low-income countries?

    BAT’s reduced-risk products are available in 57 countries to date—something we are truly proud of. We are rolling these out as fast and as responsibly as we can, including in low-income countries.

    It is important to remember that we are not alone in our transformation journey—our governments in low-[income] and middle-income countries have an especially crucial role to play. Progressive, evidence-based regulatory measures will help encourage smokers to transition to reduced-risk products. We believe governments in low-[income] and middle-income countries can introduce three types of regulation to accelerate the transition of smokers from combustibles to reduced-risk products. These include regulations and policies that enable and encourage companies to innovate and bring new products to market, permit clear communications with consumers about the relative risks of products and incentivize consumers to switch from combustibles to reduced-risk* alternatives.

    Regulations should allow flavors that adults enjoy, ensure high enough levels of nicotine to satisfy adult smokers, and where products are taxed, acknowledge the reduced-risk profile of products like e-cigarettes, oral nicotine pouches and tobacco-heating products compared to combustibles. To realize the benefit of tobacco harm reduction, the products must remain affordable.

    What does the transformation process mean for BAT’s company culture?

    My earliest impression when I first joined BAT was how diverse it is, which gave rise to our motto, “Strength in Diversity.” For a company with over 52,000 employees based in over 175 countries with multiple languages and time zones, the advent of the “A Better Tomorrow” vision has been a global rallying cry that has motivated and organized our people around a common purpose to transform our business and benefit society.

    The “A Better Tomorrow” purpose has affected our culture positively in many meaningful ways. [For example], 72 percent of new senior management hires are from outside the tobacco industry, and 39 percent of women [work] in management roles. [There are] employee initiatives supported by management to drive and reward new ideas that generate solutions; [and the company has] a comprehensive environmental program addressing factory waste, emissions, plastic and litter.

    Most notably, there has been a shift in who our people are and how they expect the business to operate. As we make progress in our transformation, I have personally noted our people taking more pride in our organization and raising their expectations for the company in the way we deliver our commitments. This is making BAT a better company and improving our contribution to society.

    Increased focus on complex novel nicotine-delivery systems requires a different composition of staff, i.e., an increasing share of scientists also coming from other industries. How far have these new arrivals impacted on the internal spirit and atmosphere at BAT?

    Probably the biggest change I’ve noticed is the diverse types of profiles now applying to join BAT. We have moved from a company selling a product based on agriculture to a high-tech and innovation-focused company. This requires all kinds of expertise that is new—[as mentioned], 72 percent of new senior management hires are now from outside of the tobacco industry. These new hires are bringing new perspectives and capabilities to drive our business transformation.

    I believe this shift in hiring will only strengthen our culture and DNA while at the same time propelling us all toward our “A Better Tomorrow” goals.

     

    *BAT use the terms “less risky,” and “reduced risk” based on the weight of evidence and assuming a complete switch from cigarette smoking. The company is keen to stress that these products are not risk-free and that they are addictive. BAT says that its products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak and Camel Snus, are subject to Food and Drug Administration regulation and that it will make no reduced-risk claims regarding these products without FDA clearance.

  • The Review Reviewed

    The Review Reviewed

    Photo: Marc

    The recent U.K. Khan review contains a number of wrong-headed statements that need to be challenged.

    By George Gay

    To my way of thinking, there is little of value in the U.K. government-commissioned review by Javed Khan into government policies aimed at reducing the incidence of tobacco smoking in England to 5 percent or lower by 2030. The review, Making Smoking Obsolete, which was published on June 9, was apparently supposed to also reflect on government policies aimed at countering health inequalities within England, part of its “leveling up” agenda. But while there is little of value in the review, it is worth reading because it contains any number of wrong-headed statements that need to be challenged, one of which seems aimed at propping up the hypocrisy that—in England and many other places—regards tobacco smoking as bad but alcohol consumption as good.

    In Part 2 of his review, in which Khan addresses the idea of prevention, of stopping people from taking up smoking in the first place, he says, in part, “I have considered various options for raising the age of sale. Should the government raise it from the current age of 18 to 21 in one go? Why not jump to 25? Will this be the ‘nanny state’ or ‘big government’ in action? How would this sit alongside the legal age to buy alcohol, to get married, to vote? Note, none of the others are likely to kill you!”

    Literally speaking, this is true. Buying alcohol is highly unlikely to kill you. But consuming it, now that’s another thing entirely. According to Alcohol Change U.K., “[a]lcohol misuse is the biggest risk factor for death, ill health and disability among 15[-year-olds to] 49-year-olds in the U.K. and the fifth biggest risk factor across all ages.”

    Of course, Khan, and other anti-tobacco, pro-alcohol operatives, would say that while tobacco smoking is a risk factor for death, ill health and disability when smokers consume cigarettes as they are intended to be consumed, it is only when alcohol is misused that it negatively affects health and leads to lethal consequences. But this, of course, is pure head-in-the-sand hokum. The U.K. National Health Service website is unequivocal in stating, “[t]here’s no completely safe level of drinking.”

    “It’s recommended to drink no more than 14 units of alcohol a week, spread across three days or more,” the website states. “That’s around six medium (175 ml) glasses of wine, or six pints of four percent beer. There’s no completely safe level of drinking, but sticking within these guidelines lowers your risk of harming your health. Try using Alcohol Change U.K.’s unit calculator to work out how many units you drink.”

    What the website doesn’t tell you is that, by its intoxicating nature, alcohol consumption does not lend itself to rational analysis of how much you have drunk or should continue to drink on any particular occasion. By design, it fuddles the brain and disguises misuse as having a good time. How many times are we told that cigarettes are designed to addict consumers and keep them smoking? But we are rarely told that alcohol is much the same—that alcohol by its nature is such that the more you drink, the more you feel like drinking more.

    It is ironic, I think, that Khan chose to make his statement about alcohol in a review that was commissioned by a government department because, within a month of the review’s publication, the prime minister, Boris Johnson, had been forced to resign over his failure to act decisively when one of his whips—a person, it is worth noting, with the responsibility, in part, of ensuring the smooth running of parliamentary business—was allegedly involved in alcohol-fueled inappropriate behavior. Of course, it wasn’t only this alcohol-fueled incident that brought Johnson down. He had started tottering previously when he was involved in alcohol-fueled events in Downing Street during a time when, because of a Covid lockdown, such events had been declared by his government to be illegal.

    Given this, it might have been expected that questions would have been raised about drinking alcohol, especially about the apparently numerous subsidized bars that the Palace of Westminster boasts. But no—there was hardly a murmur. And this speaks to the foreword with which Khan opens his review. “Most people don’t see smoking as a problem anymore,” reads his first sentence, to which the obvious rejoinder is: and clearly few people see drinking as a problem even when its use is prominent in bringing down a prime minister.

    In the next sentence of his foreword, Khan makes the point that the nation has moved on from smoking, which tends to indicate that he believes that smokers are not part of the nation but outcasts, an idea he seems to endorse when he seeks in his review to have smoking, and by association, smokers, “denormalized.” But it’s his third sentence that I really like. “It’s no longer common for living room ceilings to be stained yellow from chain-smoking in front of the TV,” he remarks, without adding, “but the carpets are still stained with the vomit spewed out by drunks downing buckets of alcohol on top of cheap takeaways.”

    A Blind Spot

    I have no problem with alcohol consumption. But what is beyond my comprehension is how some people are able to condemn outright the problems caused by tobacco smoking while turning a blind eye to the much wider-ranging problems created by drinking alcohol. I think sometimes these people would sooner be the victim of passive drinking—of being knocked down by a drunk driver or assaulted by a drunk in the street—than being the victim of passive smoking—of being annoyed by the smell of burning tobacco.

    As well as comparing tobacco smoking with alcohol consumption, Khan cannot resist an equally risky diversion toward Covid 19, suggesting, I think, that smoking presents a potential risk greater than that of viruses. “Tobacco manufacturers make lethal products, which have killed 8 million people in the U.K. over the last 50 years,” he writes. “That’s more than 400 people a day and far more than Covid-19.”

    I assume that what is meant here is that the average number of daily deaths from smoking is greater than the average number of daily deaths caused by Covid-19, which seems like an odd comparison to make without adding caveats. Smoking tobacco is a lifestyle choice while contracting Covid-19, unless you’re really strange, is not.

    One clue here is to be found in the fact that tobacco consumption raises huge amounts of revenue while Covid-19 just consumes revenue. Smokers die from smoking-related diseases, if they do, after 40–50 years of smoking while those who have contracted Covid-19 die, if they do, within days, weeks or months, so the years “lost” to smoking will generally be fewer than the years “lost” to Covid-19.

    Additionally, we now know pretty much what happens when people smoke, but there is no agreement yet even on how to calculate the number of deaths caused by Covid-19, and the future of those who have had Covid-19 and survived is still being mapped out. There is simply no way that tobacco smoking threatens to destroy the human race, but the same cannot be said about viruses, antimicrobial resistance and environmental breakdown. It is time to introduce a sense of proportion—to get a grip.

    More of the Same

    Two of the major problems with the Khan review are that it contains little that is new and that it is mostly about scaling up those things that haven’t worked in the past. In addition, it seems to take no notice of the problems that England is facing at the moment, though this is perhaps down to the brief Khan was handed. Khan wants cigarette taxes to be increased by 30 percent, something he recognizes will cause the further impoverishment of some of the most financially vulnerable people in the country.

    And, in an admission that this tax hike will prove a bonanza for those involved in the illegal trade in cigarettes, he wants a further, faster crackdown by the police and the courts on those involved in this trade. But what is the point of making such recommendations in a country where six police forces are in special measures, where one of those forces, London’s Metropolitan Police, has, as I understand it, lost the confidence and support of the public and is no longer able to police by consent, and where the courts, already with huge backlogs of cases, are the subject of strikes?

    Khan seems to accept that the 12-year austerity program imposed by successive conservative governments has “skinned to the bone” smoking interventions. “The results of disinvestment are stark,” he writes. “Since 2010, the number of people using stop-smoking services reporting a successful quit attempt has fallen by 72 percent. From 380,000 people then to 105,000 now.” But he doesn’t seem to appreciate that the police and the courts have also been starved of funds to the point where they are unable to function as they should.

    Inconsistencies

    Khan’s review has many uncompleted comparisons, inconsistencies and oddities, such as when he speaks of “illicit enforcement” when presumably he means law enforcement activities against those involved in illegal activities. And he says at one point that he wants to put out of business the criminal gangs behind the illegal trade in cigarettes, seemingly having failed to notice that the government for which he is producing the review is also something of a criminal gang that has shown itself willing to break national and international law to get its own way.

    Despite his claiming to be interested in the dissemination of accurate information, Khan seems to also be blind to the fact that, in England, cigarette packs are covered with graphic health warnings that amount to falsehoods in the absence of proper explanations about what proportion of smokers suffers from the particular medical complaints depicted, what proportion of smokers suffers from those complaints to the extent depicted and what proportion of nonsmokers suffers from these conditions.

    Some bottles of alcohol, on the other hand, come in what I would describe as colors likely to appeal to young children, especially girls aged four to seven, and with labels depicting sophisticated young people having a good time. There are no graphic warnings on these bottles showing diseased livers and brains and none showing bodies mangled in car wrecks or with faces disfigured by broken glass. And yet, Khan wants to go further in the case of cigarettes. With no room for maneuver on the pack, he wants to attack the cigarettes themselves with more misleading warnings. He wants to choke any enjoyment out of consuming cigarettes, even in the case of committed smokers.

    Interestingly, one of his ideas is to mandate that cigarette paper should be colored brown or green, without, I assume, having carried out any experiments into whether the coloring agents would add to the toxicity of those cigarettes. Presumably, he picked brown and green because his personal view is that these colors are unattractive. Of course, here he feeds into the great myopia of our government and our age. The government doesn’t like green either. It’s an embarrassment that daily reminds them of how it, along with most governments around the world, is failing in respect of the environment. What the government seems to have overlooked, however, is that this failure means that it doesn’t need to worry about making smoking obsolete. Destroy the environment and you make smoking obsolete. Dead people don’t smoke.

    Countering the Myths?

    As suggested above, Khan often mentions the need for the dissemination of accurate information to counter the myths around smoking and vaping, but what he is talking about is information based on a version of reality concocted by people who make their living out of opposing the consumption of tobacco and will retire on comfortable pensions having failed to achieve that which they purportedly set out to do. Most of these antis have probably never smoked and probably have never lived in financial poverty the way that many smokers do, partly because of the oh-it’s-in-your-best-interests tax hikes that the antis have recommended to governments greedy for revenue. The antis probably never question whether people living in abject poverty actually want the extra five years of life without adequate food, shelter and heating that giving up smoking may or may not impose on them. And the antis will probably live their lives without ever questioning whether their drinking, opioid or cocaine habits might make what they are up to a tad hypocritical.

    Although Khan claims to be interested in accurate information, he perpetuates the myth that it is somehow bad for your health to sit outside a pub or restaurant drinking if there is a smoker on the horizon, while failing to point out that, if you are 49 years of age or younger, you are more likely to be harmed by your drink than by a whiff of tobacco smoke. And he fails to warn that, if you are worried about your health, it is not the tiny puffs of visible tobacco smoke that should concern you the most but the invisible, ubiquitous air pollution, the inhalation of which, worldwide, kills more people than the consumption of primary and secondary tobacco smoke.

    Khan seems to be certain of a couple of things. One is that longevity is a goal that should be embraced by everybody—or, in the case of those who refuse to do so, embraced on their behalf. “The single most important thing you [my emphasis] can do to improve someone’s [my emphasis] physical health, mental health and to get them to live a longer life is to help them to give up smoking,” he writes. Of course, a curious reader of the review might be pardoned for asking who is this you, and who is this someone? Well let me give you my best attempt at definitions. You comprise all the good, financially well-off people bulging at the seams with the right stuff that they are just bursting to share with someone while someone comprises the bad people who are lacking the right stuff and need to be guided onto the true path by you.

    There seems to be no hint in the Khan review that rational arguments could be put forward for tobacco smoking. There’s no hint that smokers might have independent minds with which they have examined the facts and with which they have decided they want to continue with their habit. In fact, this idea is borne out in one sentence of the review that I found especially instructive. “For example, many people wrongly think smoking relieves their stress, but the science shows us that it is quitting that reduces anxiety and depression,” Khan wrote. Wrongly think! What towering scientific arrogance! The idea here is that through the use of some gadgetry, scientists working in a field that is as yet little understood can experience an emotion in a way that it is being experienced by an individual independent of the scientists—only more accurately. It reminds me of the old joke that I read again somewhere quite recently in which two behavioral scientists meet in the street and one says to the other, “You’re fine, how am I?”

  • Thai Minister Reiterates Opposition to Vaping

    Thai Minister Reiterates Opposition to Vaping

    Photo: samart boonprasongthan/EyeEm

    Thailand’s health ministry remains opposed to vaping, saying e-cigarettes are affecting the health of consumers of whom more than half are considered youth, reports Bangkok Post.

    Speaking at a national conference on cigarettes and public health in Bangkok on Aug. 29, Public Health Minister Anutin Charnvirakul stressed the need to continue banning e-cigarette imports to protect youth from the health risks associated with vaping.

    More than half of the about 80,000 vapers in Thailand are aged 15–24, according to a survey conducted by the National Statistics Office last year.

    “This clearly showed vaping has created new smokers, especially young people, while a growing number of international studies found smoking e-cigarettes has negative effects on young people’s brains,” said Charnvirakul.

    Pointing to “the experiences of other countries,” Charnvirakul said banning e-cigarettes was the most effective measure to control vaping.

    Concerns about illicit trade would be addressed by continued “crackdowns on e-cigarettes smuggled into the country,” he added.

    Charnvirakul comments follow discussions about making vapor products legal in Thailand. Earlier this year, the Digital Economy and Society Ministry set up a working group to see if electronic cigarettes could be legalized as an alternative for smokers.

  • More Danes Quit Smoking During Covid

    More Danes Quit Smoking During Covid

    Photo: sezerozger

    Danish smokers bought less tobacco, and more of them quit smoking than usual during the Covid-19 pandemic, according to new research from the University of Copenhagen that monitored cigarette purchases from the March 2020 lockdown through the end of the year. Those who kept puffing also purchased significantly less tobacco, the study showed.

    Among other things, the figures reveal that regular smokers bought 20 percent fewer cigarettes each week than before the pandemic. Meanwhile, the number of those who quit increased by 10 percent from the year prior.

    “The big picture is that cigarette consumption fell during the pandemic,” said study author Toke Reinholt Fosgaard, associate professor at the University of Copenhagen’s Department of Food and Resource Economics. “It comes as somewhat of a surprise as one would expect to see people smoking more during a pandemic, a time when people felt worse psychologically and had fewer opportunities to move about. Yet, the opposite occurred.”

    Fosgaard attributes the decline in tobacco consumption to the fact that smokers are at greater risk of developing severe Covid symptoms. “For a smoker, the consequences of smoking became more immediate, rather than a consequence in old age, as smokers suffer more severe cases of Covid,” he said.

  • More Americans Smoking Marijuana Than Tobacco

    More Americans Smoking Marijuana Than Tobacco

    Photo: Yakobchuk Olena

    The use of cannabis in the United States is at an all-time high, with more Americans smoking marijuana than tobacco, according to a recent Gallup poll conducted from July 5 through July 26 and released on August 16.

    Sixteen percent of those surveyed said that they smoke marijuana, up from 12 percent in a similar poll only one year ago.

    By contrast, only 11 percent said that they had smoked a tobacco cigarette in the previous week in a separate poll published in July. That figure was down from a year ago when 16 percent said that they had smoked a cigarette in the past week and a significant decrease from the peak in the 1950s, when 45 percent of adults polled said that they were smokers.

    The share of those who said they smoke marijuana was the highest since Gallup began asking the question in 2013, while the percentage of those who said they smoked a tobacco cigarette in the previous week was the lowest recorded since the public opinion analytics company began keeping track of smokers in 1944.

    Nearly half (48 percent) of U.S. adults say they have tried marijuana at some time in their lives, up from only 4 percent in 1969, when Gallup first started surveying rates of lifetime marijuana use. The same year, 40 percent of Americans said that they had smoked a cigarette in the past week.

    Despite the growing popularity of marijuana, Americans are split on the effect cannabis has on society. Half of those surveyed think marijuana has an overall negative effect, while 48 percent said that marijuana’s effect on society is positive in the most recent Gallup marijuana poll.

    The Gallup poll surveyed 1,013 U.S. adults.

  • Illicit Tobacco Seized in Belgium

    Illicit Tobacco Seized in Belgium

    Photo: Europol

    Authorities seized over 57 million cigarettes and more than 48 tons of cut tobacco during raids in Belgium, reports Europol. The actions prevented the circulation of illegal tobacco products with a total tax value of more than €32 million ($31.98 million).

    Police carried out house searches in warehouses and at a private residence in Belgium, some of which were based on intelligence provided by the Lithuanian Criminal Police Bureau on suspicious deliveries to addresses in Belgium.

    Law enforcement officers discovered two production lines for cigarettes bearing a variety of well-known brand names. The market value of the seized cigarettes amounted to around €73 million in the United Kingdom, the presumed country of distribution for the majority of the products.

    Additionally, law enforcement secured a large number of empty packages, filters, cigarette paper, glue, cardboard and packaging film, as well seven new machines intended for a new production and packaging line.

    The searches led to the discovery of several clandestine production sites, as well as warehouses for storage of large quantities of tobacco products. In some locations, sleeping quarters for workers were uncovered on the premises. Along with confiscating significant amounts of raw materials, authorities seized various vehicles and arrested several persons of Lithuanian, Polish, Ukrainian and Jordanian nationality.

    The seizures are the latest in a series of actions against the illegal cigarette trade in Belgium. This year alone, authorities uncovered and dismantled five illegal tobacco production sites and 15 storage warehouses in the country. Over the same period, they confiscated more than 274 million cigarettes, 88 tons of cut tobacco, 65 tons of water pipe tobacco and 40 tons of raw tobacco.

    The unpaid tax on these products totals more than €139 million, according to Europol.

    Belgium has become a major hub for illegal tobacco production due to its proximity to the French and British borders, and the rising excise duty rates in neighboring countries.

  • Cigarette Smugglers Busted in Hungary

    Cigarette Smugglers Busted in Hungary

    Image: alexlmx

    An operation, led by Hungary and supported by Europol and Eurojust, and involving law enforcement authorities in Austria, the Czech Republic and Poland has led to the dismantling of a criminal network involved in large-scale tax fraud concerning cigarette smuggling.

    The investigation was initiated as the result of intelligence analyzed by Europol. In a recent action day, law enforcement officers arrested one suspect and seized a large amount of valuables.

    In March 2021, the Hungarian Tax and Customs Administration seized nearly 23 million unsealed cigarettes that arrived by plane from Dubai to the Hungarian airport of Debrecen. Produced in the United Arab Emirates, the tobacco products were concealed in car parts being shipped on cargo planes. Hungarian authorities intercepted one shipment as it was leaving the airport in four trucks with Polish license plates.

    Officials suspect that there were two similar deliveries earlier that year, on Jan. 29, 2021, and Feb. 26. 2021. The estimated economic damage to the European Union budget caused by this organized crime group’s tax evasion on the tobacco products amounts to more than €8.75 million.

    On August 16, 2022, law enforcement officers seized €750,000 in various currencies, seven luxury vehicles and 49 luxury watches from the Hungarian citizen who was arrested.

    The authorities are looking for three further suspects for whom European and international arrest warrants have been issued.

    Europol facilitated the information exchange, cross-checked operational information against Europol’s databases and provided additional analytical support to help advance the national law enforcement authorities’ investigations. Eurojust actively facilitated cross-border judicial cooperation between the national authorities involved, including the execution of European investigation orders.