Blog - Tobacco Reporter

German Trade Group Blasts Call for Vape Ban

Recent calls to ban e-cigarettes lack a scientific basis, according to the German Association of the Tobacco Industry and Novel Products (BVTE).

In a recent interview with Deutsche Presse-Agentur, Manne Lucha, minister of social affairs, health and integration for Baden-Württemberg, said that e-cigarettes should be treated the same as combustible cigarettes and that flavored vapor products should be banned.

“It is a scientific consensus that the intake of harmful substances when vaping e-cigarettes is much lower than when smoking tobacco. With his ‘post-factual’ statements, the minister is causing consumer uncertainty with counterproductive consequences for health policy,” said BVTE CEO Jan Muecke in a statement.

Muecke cited a 2020 statement by the German Cancer Research Center, which acknowledged that a complete switch from smoking to vaping reduces the consumer’s exposure to harmful substances. He also quoted Public Health England’s finding that e-cigarettes are at least 95 percent less harmful than smoking.

According to the BVTE, e-cigarettes are the most frequently used smoking-cessation tool in Germany, ahead of less effective methods such as medical nicotine replacement products. The wide choice of flavored liquids, meanwhile, is a significant factor for adult smokers to switch to vaping, the organization wrote.

“Instead of fueling fears with false claims and misguided demands for bans, e-cigarettes should finally be promoted in Germany as an opportunity to minimize risks for smokers,” Muecke said.

January 31, 2023

PMI and KT&G Boost Collaboration

Philip Morris International and KT&G are extending their cooperation in selling smoke-free devices with a long-term deal. The arrangement builds on a deal signed in March 2020 that has seen PMI commercialize the South Korean cigarette manufacturer’s Lil heat-not-burn product in more than 30 markets.

The new agreement, signed on Jan. 30, runs until Jan. 29, 2038, with performance-review cycles and associated commitments, based on volume, to be confirmed for each three-year period. PMI and KT&G expect these commitments to increase over the full duration of the agreement, starting with a total commitment for the first three-year period equivalent to 16 billion consumables.

The agreement gives PMI continued exclusive access to KT&G’s smoke-free brands and product-innovation pipeline, including offerings for low- and middle-income markets, that will enhance PMI’s existing portfolio of smoke-free products.

It gives KT&G continued access to PMI’s global commercial infrastructure and experience commercializing smoke-free products to support the further expansion of KT&G’s smoke-free business outside South Korea.

“We have been pleased with the success of our cooperation with KT&G so far and believe a long-term collaboration will accelerate the achievement of a smoke-free future. We want everyone who does not quit smoking to switch to a better alternative, for the benefit of their own health, public health, and society at large,” said PMI CEO Jacek Olczak in a statement, adding the KT&G’s Lil products play a complimentary role to PMI’s popular IQOS heat-not-burn device.

“With KT&G’s technology and speed of innovation and PMI’s science and commercial infrastructure, we believe our partnership will accelerate our shared vision of a smoke free future.”

“We are now able to further raise the competitiveness of KT&G’s smoke-free products in the overseas market and establish a basis for stable growth of our global business through the advancement of the strategic partnership with PMI,” said KT&G CEO Baek Bok-In in a statement. “KT&G will make efforts to acquire world-class capabilities to become a global top-tier company in NGP earlier than planned and to lead the next generation tobacco market.”

KT&G introduced Lil in 2017 and has been launching updated versions of the product at frequent intervals.

Following their March 2020 agreement, PMI and KT&G first introduced Lil in three markets including Japan. Later, they expanded sales to into 31 to countries in Europe and Central America, among other regions.

January 30, 2023

Judge Lowers Royalty Payments in Alto Case

A U.S. federal judge in North Carolina lowered the rate of ongoing royalties R.J. Reynolds Vapor Co. will have to pay to Altria Client Services in an intellectual property dispute involving RJR’s Vuse Alto e-cigarette, reports Law360.

In September 2022, the U.S. District Court for the Middle District of North Carolina awarded Altria Client Services more than $95 million after finding that Reynolds Vapor Co.’s Vuse Alto e-vapor product infringed three Altria patents.

In his Jan. 27 opinion, U.S. District Judge N. Carlton Tilley Jr. ruled that continuing royalties on Vuse Alto are justified but not at double the rate decided by the jury.

The opinion lowers Altria’s requested rate for ongoing royalties from 10.5 percent to 5.25 percent, which Reynolds will have to pay quarterly until the last of Altria’s patents expire on April 22, 2035.

“Altria has not shown that the pod patents’ contribution to the Alto’s performance since May 2019 justifies increasing the jury’s royalty rate of 5.25 percent,” Judge Tilley wrote.

Earlier this month, Judge Tilley denied Reynolds a new trial in the Vuse Alto dispute.

Reynolds Vapor Co. has requested a new trial, stating that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial.”

January 30, 2023

Belgium Health Minister Pushes For Pouch Ban

The Belgian health minister, Frank Vandenbroucke, has called for a ban on nicotine pouches, citing concerns about youth exposure to tobacco products.

“Our goal is to prevent our children and young people from smoking,” Vandenbroucke said. “If you are fully committed to a smoke-free generation, you must ensure that young people come into less contact with smoking or anything related to it.”

Nicotine pouches are popular with youth, according to The Brussels Times, because they are easy to use, like snus, which is banned in the EU except for Sweden, but without the tobacco, and because they are cheaper than other tobacco products. Dutch research has shown that nicotine pouches are addictive and cause harm to the brain.

“These nicotine pouches, like electronic cigarettes and vaping, can be a steppingstone to smoking at an early age,” Vandenbroucke said. “That is why we are resolutely opting for a ban on them. We are doing this because protecting the health of children and young people is an absolute priority.”

January 30, 2023

Group Predicts Growth for Holograms in 2023

Commercial holograms will maintain robust growth in 2023 despite the global challenges, according to the International Hologram Manufacturers Association (IHMA), which marks its 30th anniversary this year.

Authentication and track-and-trace systems featuring holograms will continue to help to underpin international efforts by government and law enforcement agencies to bolster overt and covert protection strategies in the next 12 months, said IHMA chair Paul Dunn.

“Counterfeiting is and will remain a massive global threat, continually placing governments, brands and the public at risk—and will continue to be tackled effectively to minimize the impact on society. Despite the economic, social and global supply chain challenges, we expect to see [growth] in 2023 with countries enhancing and bringing forward their anti-counterfeiting plans, which feature holograms,” he said.

“These holograms will become even more integrated with other technologies to create intuitive brand engagement programs while, simultaneously, authentication through scanning a QR code on the label acts as a secondary product verification method. This provides a simple unified platform for brands to interact and engage with their customers.”

Dunn also sees the hologram on labeling continuing to become part of a wider function to track a product throughout its lifecycle and post-life cycle in 2023. This combination of authentication and tracking, he says, will give brand owners complete visibility and control from sourcing raw materials through to recycling.

This year will also see continued growth in high security print applications as, increasingly, holography origination capabilities are brought in-house. This cuts the innovation cycle and enables printers to get their technologies specified for new banknote work.

Sustainability will also be one of the key themes of the next 12 months with manufacturers developing strategies to cut their carbon footprints as part of their corporate responsibility strategies. “The IHMA will be leading efforts through its Sustainability Working Group to encourage best practice by sharing information and showcasing companywide initiatives,” Dunn said.

January 27, 2023

KT&G: Half of Sales from Abroad by 2027

KT&G Corp. aims to earn over half of its sales from overseas businesses in 2027, the company told participants in an investor event.

The South Korean cigarette manufacturer targets sales of KRW10 trillion ($8.1 billion) by that year compared with an estimated annual sales of KRW5.9 trillion for 2022. Last year, KT&G likely earned about one-third of its sales from overseas operations.

In addition to focusing on its combustible cigarette business, the company will reinforce its next-generation product (NGP) businesses, which include heat-not-burn (HnB) products and health functional food products, KT&G Senior Executive Vice President Bang Kyung-man was quoted a saying by the Yonhap News Agency.

“We will invest KRW4 trillion to build new overseas production facilities and expand existing ones in the next five years to meet growing demand for NGPs, like HnB products,” he said.

The company is also considering building a new factory, either in Kazakhstan or eastern Europe, Bang said. To raise the necessary capital, the company plans to sell unused property and borrow money from banks, he said.

KT&G has exported its HnB products to more than 30 countries since 2020 when it signed an agreement with Philip Morris International for the commercialization of KT&G’s smoke-free products outside of South Korea.

KT&G currently earns 90 percent of its revenues from cigarette sales and 10 percent from HnB products. The company has four tobacco manufacturing plants—one each in South Korea, Russia, Turkey and Indonesia—with a combined capacity of 13.6 billion cigarettes a year.

January 26, 2023

Three Heating Products Authorized in the U.S.

The U.S. Food and Drug Administration has authorized the marketing of three new tobacco-flavored heated-tobacco products included in Philip Morris Products’ supplemental premarket tobacco product applications (PMTAs). The products receiving marketing granted orders are Marlboro Sienna HeatSticks, Marlboro Bronze HeatSticks and Marlboro Amber HeatSticks, each of which is used with the IQOS tobacco-heating device.

Based on the FDA’s review of the supplemental PMTAs, the agency determined that the marketing of these products should be authorized because, among other things, the net population-level benefits to adult smokers outweigh the risks to youth.

In 2019, the FDA authorized the marketing of IQOS and several other Marlboro HeatSticks products through the PMTA pathway. Philip Morris pursued marketing authorization for these new Marlboro HeatSticks by submitting supplemental PMTAs for modified versions and line extensions of the tobacco-flavored product for which the company had previously received a marketing granted order. A supplemental PMTA can be submitted in situations where an applicant is seeking authorization for a new tobacco product that is a modified version of a tobacco product for which they have already received a marketing granted order.

Following the FDA’s rigorous scientific evaluation of the applications, the agency determined that Marlboro Sienna HeatSticks, Marlboro Bronze HeatSticks and Marlboro Amber HeatSticks are comparable to the previously authorized tobacco-flavored product. Like the previously authorized products, the FDA has placed stringent marketing restrictions on the new products in an effort to prevent youth access and exposure.

January 26, 2023

Indonesia Mulls Ban on E-Cigarettes

Indonesia may ban cigarettes if they are found to be harmful to public health, reports Antara News.

Speaking at the University of Indonesia in Jakarta on Jan. 26, Vice President Ma’ruf Amin stated that thorough assessment of the effects of e-cigarettes on public health would be conducted before the government takes its decision.

If e-cigarettes are found to be safe for public health, the government will consider how to tax the products, he noted.

Earlier, the government proposed to strengthen health warnings on tobacco packaging, restrict advertising and prohibit the sale of single cigarettes, among other measures.

January 26, 2023

UKVIA Publishes Annual Report

The U.K. Vaping Industry Association (UKVIA) has published its 2022 annual report.

Among the highlights of 2022 was the launch of the UKVIA-commissioned Economic Impact Report from the Centre for Economics and Business Research, which—for the first time—detailed the national and regional contribution that the U.K. vape industry made to the economy, according to the UKVIA.

“Our industry is under scrutiny like never before, and we must tackle the big issues, such as underage vaping, the environmental impact of disposable devices and the massive influx of fake and illegal imports,” said John Dunne, director general of the UKVIA. “Any one of these issues has the potential to see regulators clamp down hard on vaping, and the fact that they are all happening at once demonstrates that it is crucial that we get our house in order without delay.”

January 26, 2023

CAPHRA Comments on Proposal to Tighten Vaping Restrictions

The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) has submitted comments on New Zealand’s Proposals for the Smoked Tobacco Regulatory Regime. The proposals include tightening current restrictions on vaping product safety requirements and packaging and reducing nicotine levels in disposable vapes as well as restricting the location of specialist vape retailers.

“Whilst we have absolutely no issues with restrictions around primary and secondary schools and Kura, we do have issue with adult community locations, such as universities, and other tertiary facilities,” said Nancy Loucas, executive coordinator of the CAPHRA.

“Specialist vape retailers provide a service that is not available in general retailers. It is a disservice to adults who smoke in Aotearoa, New Zealand, to restrict their access to specialist shops and guidance.”

“The main issue, however, is that the regulations, as they are, work perfectly well,” said the CAPHRA in reference to the other proposed restrictions. “The issues are public education and enforcement. The regulations, as they are written, are working at getting citizens to make the switch from combustible tobacco to less harmful vaping.”

The comment period closes on March 15.

January 26, 2023