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  • Vaping Advocate Greg Conley Joins the AVM

    Vaping Advocate Greg Conley Joins the AVM

    Greg Conley

    Longtime vaping industry advocate Gregory Conley is joining the American Vapor Manufacturers Association (AVM) as director of legislative and external affairs.

    Under the direction of AVM President Amanda Wheeler, Conley will focus on government and media relations, while helping advance public policy supporting the American vaping product industry in its fight for survival.

    “Over the last decade-plus, myself and millions of American adults have given up cigarettes because of vaping,” said Conley. “During that time, I have been proud to advocate for vaping from the perspective of a consumer and harm reductionist. In this new role at AVM, I will continue to push for appropriate regulations to ensure that American businesses are not replaced with a multibillion-dollar illicit market.”

    “Gregory is a critical voice for vaping and understands adult smokers and ex-smokers face dire circumstances because of the FDA,” said Wheeler. “One billionaire is pumping hundreds of millions of dollars into campaigns designed to end the vaping industry. The stakes have never been greater and I am thrilled to have him aboard to work towards a unified industry.”

    Conley has a long history of advocacy for vaping products and tobacco harm reduction, dating back to 2010. While receiving a la and business degree from Rutgers University, Conley served as the pro bono legislative director for the Consumer Advocates for Smoke-Free Alternatives Association.

    Conley then founded the American Vaping Association (AVA), and during his time there he testified before dozens of state legislative bodies, appeared on numerous news networks, and participated in a White House listening session with then-President Donald Trump.

    Conley plans to continue working with AVA as it charts a new path forward focusing on voter education and outreach.

  • JT Reports ‘Robust’ Performance

    JT Reports ‘Robust’ Performance

    Masamichi Terabatake (Photo: JT Group)

    The JT Group reported net revenue of ¥1.27 trillion ($9.55 billion) for the second quarter of 2022, up 10.7 percent over that reported in the comparable 2021 quarter. Core revenue at constant exchange rates increased by 3.7 percent to ¥1. 14 trillion. Adjusted operating profit at constant currency increased by 8 percent to ¥386.7 billion.

    On a reported basis, adjusted operating profit increased by 15.8 percent to ¥414.9 billion. Operating profit increased by 18.9 percent to ¥383 billion. Profit increased by 17.3 percent to ¥264.1 billion.

    “In the first half, the JT Group delivered a robust performance, mainly driven by strong pricing,” said JT Group President and CEO Masamichi Terabatake in a statement. “We are also encouraged by the Ploom X volume and share performance in Japan. In the second half of the year, we will be leveraging learnings from Japan for international Ploom X launches.

    “We have revised our 2022 full year reported adjusted operating profit and profit guidance upwards, driven by favorable currency movements against the Japanese yen. However, the adjusted operating profit at constant FX is revised downwards considering higher input costs impacting our supply chain operations. Dividend per share guidance for full year remains unchanged at 150 yen per share. The interim dividend is 75 yen per share.

    “Regarding Russia, while we continue to manufacture and distribute our products in full compliance with national and international sanctions, the operating environment is becoming increasingly complex. Under these circumstances, the JT Group continues to evaluate various options for its Russia business, including potentially transferring its ownership, and taking necessary decisions to address the changing situation in accordance with the group’s management principle.”

  • Push To End ‘Essential Commodity’ Status

    Push To End ‘Essential Commodity’ Status

    Photo: sezerozger

    The Bangladesh Ministry of Health and Family Welfare has asked the Ministry of Commerce to remove cigarettes from the essential commodities list, reports The Business Standard. The removal is necessary to help the government achieve its “tobacco-free Bangladesh” objectives, according to the health ministry.

    Any product covered by the Essential Commodities Act enacted 66 years ago can be freely promoted for wholesale and retail, and no restrictions can be imposed on the marketing of these products, even under emergency circumstances.

    Workers in the essential commodities sector cannot strike, and no essential commodities can be hoarded. The essential commodities list was created when Bangladesh was still part of Pakistan. Over the years, new products, including palm oils, turmeric and cumin, have been added, but none have been taken off. Other products on the list include typewriters, 35 mm (cine) raw films and sewing machines.

    The law permitted tobacco companies to continue operating through the Covid-19 pandemic, even as other factories, including in Bangladesh’s garment industry—the country’s main export sector—were shut down.

    In 2016, Prime Minister Sheikh Hasina set a goal to make Bangladesh tobacco-free by 2040.

    Because cigarettes are listed as an essential product, however, it is impossible for the government to fully implement the Smoking and Using of Tobacco Products (Control) Act.

    Further complicating matters, cigarettes are the largest source of government revenue. The National Board of Revenue collected BDT278.3 billion ($2.95 billion) in value-added tax and excise duty from cigarettes in fiscal year 2021–2022.

    According to the Bangladesh Cancer Society, the government spent BDT305.7 billion in fiscal year 2017–2018 to treat patients with tobacco-related illnesses.

  • Firms Shun Track-And-Trace System

    Firms Shun Track-And-Trace System

    Photo: Maksym

    More tobacco companies must install Pakistan’s new track-and-trace system to tackle the country’s massive tax evasion problem, according to Project Director Tariq Hussain Shaikh.

    Out of the 40-plus companies registered with the Pakistan Tobacco Board, only three—Philip Morris Pakistan, Pakistan Tobacco Co. and Khyber Tobacco—have installed the track-and-trace system that became operational on July 1, reports the Business Recorder.

    According to Shaikh, the system has significantly boosted government tax collections in other sectors. In the sugar industry, for example, sales tax collections increased by 34 percent after its implementation at the end of 2021.

    Success, however, depends on across-the-board implementation, Shaikh cautioned. Unless more tobacco companies adopt it, the track-and-trace system will not reduce tax evasion, which in Pakistan amounts to PKR80 billion ($335.74 million) per year.

    In a letter dated June 30, 2022, Pakistan’s Federal Board of Revenue directed all cigarette manufacturers to apply tax stamps to their products from July 1, 2022. Nine tobacco companies have challenged the directive on technical grounds.

  • Philippines Vaping Bill Lapses Into Law

    Philippines Vaping Bill Lapses Into Law

    Photo: Dang

    A bill seeking to lower the purchase age for e-cigarettes and heated-tobacco products has lapsed into law in the Philippines, reports ABS-CBN, citing a tweet sent by Presidential Press Secretary Trixie Cruz-Angeles.

    The measure moves the regulation of vapes to the Department of Trade and Industry from the Food and Drug Administration. It also lowers the age of sale from 21 to 18.

    The proposal was reportedly submitted to the Presidential Palace on June 24, days before then President Rodrigo Duterte stepped down from office.

    A bill will lapse into law if the chief executive fails to act on it 30 days after receipt from Congress, according to the Official Gazette.

    The vape regulation bill was approved by both the Senate and the House of Representatives of the 18th Congress in January but remained on the Speaker’s table until the final days of the Duterte administration. As a consequence of its delayed transmission to the presidential office, the bill was inherited by President Ferdinand “Bongbong” Marcos Jr.

    In addition to lowering the purchase age for e-cigarettes and heated-tobacco products, the bill removes a two-flavor limit on the products’ flavors or juices, allows sponsorships beyond industry associations and trade events and allows tobacco companies to conduct corporate social responsibility-related activities.

    Anti-vape advocates vowed to contest the new legislation in court.

  • Russia Exit Hits BAT Profits

    Russia Exit Hits BAT Profits

    Photo: BAT

    BAT took a £957 million ($1.15 billion) impairment charge related to the transfer of its Russian business, lowering its half-year earnings by a quarter.

    The London-based firm, which controlled almost a fourth of the Russian market, said earlier this year that it was in advanced talks with its distributor in the country to sell the business in the wake of Russia’s invasion of Ukraine.

    BAT reported a 25 percent drop in profit from operations on a reported basis to £3.68 billion for the six months to June 30 as a result of the charge. The company expects global tobacco industry volume to be down about 3 percent, partly because of the Russia-Ukraine crisis.

     

    In a press release announcing the half-year results, BAT emphasized the growth of its New Categories products and the performance of its combustible business, which continues to grow value share enabled by robust pricing.

    “I am very proud that our continued New Categories growth momentum is driving faster transformation, with revenue growth of 45 percent in the first half of 2022, on top of 51 percent growth in fiscal year 2021,” said BAT CEO Jack Bowles. “I am especially proud that the number of consumers using our noncombustible brands has passed the milestone of 20 million in the first half.”

    Noncombustible products now represent 14.6 percent of BAT’s revenue.

    While acknowledging the geopolitical and macroeconomic challenges, Bowles was upbeat about the outlook for BAT.

    “We are not immune, of course, to the increasing macroeconomic pressures, exacerbated by the conflict in Ukraine,” he said. “However, we are well positioned to navigate the current turbulent environment due to our powerful brands, operational agility and continued strong cash generation.”

  • New Tobacco Health Warnings in India

    New Tobacco Health Warnings in India

    Photo: Tobacco Reporter archive

    Tobacco manufacturers selling in India will have to print a new health warning on their products starting Dec. 1, reports Mint.

    The Union Health Ministry has specified two sets of warning messages and images to be used on both sides of the pack. The first, “Tobacco causes painful death,” must be printed with an image on one side of a pack, and the message “Tobacco users die young” must be displayed with an image on the other side of a pack.

    The packs must also display a toll-free helpline for smokers wishing to quit.

    Health activists welcomed the new warnings.

    “It’s a proven fact that the lives of tobacco users are shortened by up to 10 years as compared to nontobacco users,” said S.K. Arora, medical superintendent of the Sanjay Gandhi Memorial Hospital and renowned tobacco control expert. “The warnings play a significant role in helping tobacco users quit the habit.”

    In the second round of the Global Adult Tobacco Survey, 61.9 percent of cigarette smokers, 53.8 percent of bidi smokers and 46.2 percent of smokeless tobacco users were considering quitting due to the warning label on packets. The number is significantly higher compared to the 2009–2010 figures.

    According to government data, tobacco use causes more than 1.3 million deaths every year

  • CTP’s Matt Holman Joins PMI

    CTP’s Matt Holman Joins PMI

    Matt Holman

    Matt Holman, director of the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) Office of Science, is leaving the agency to join Philip Morris International effective immediately, reports The Hill, citing a memo from CTP Director Brian King. Holman has been director since 2017.

    “I know that he led the Office through a critical time, including preparing for and overseeing review for the bolus of PMTA [premarket tobacco product application] applications,” King said in the memo. “I’m grateful to Matt for his contributions to the Center and unwavering commitment to you all over the years, and I wish him well in his next chapter.”

    Holman’s departure comes after Mitch Zeller, the longtime CTP head, retired in April. King was appointed director earlier this month.

    According to King’s memo, Holman has been on leave and has recused himself from all CTP and FDA work while exploring career opportunities outside government.

    While free to pursue employment outside of the government, FDA employees are required to immediately disclose that they are exploring opportunities outside the government.

    In March, the FDA signed off on a third-generation version of PMI’s IQOS heat-not-burn product, which was first authorized for sale in 2019. In 2020, FDA authorized it as a Modified Risk Tobacco Product, allowing the company to legally claim that fully switching from regular cigarettes to IQOS can reduce a person’s exposure to harmful chemicals.

    Holman leaves the CTP as the agency faces series of major tobacco-related decisions, including a potential ban on menthol cigarettes, lowering nicotine levels, and the next step in its ongoing attempt to regulate Juul and other electronic cigarettes.

    A spokesperson for Philip Morris said Holman “is committed to helping existing adult smokers access scientifically substantiated smoke-free alternatives while protecting youth. We are looking forward to him joining our team as we continue to pursue a smoke free future.”

  • ‘Endgame’ Revised to Those Born After 2007

    ‘Endgame’ Revised to Those Born After 2007

    Photo: matka_Wariatka

    After considering the views of stakeholders, the government of Malaysia has pushed the year limit of its tobacco generational endgame law to 2007 from 2005, reports New Straits Times.

    Earlier this year, Health Minister Khairy Jamaluddin tabled a new Tobacco and Smoking Control bill to replace the current tobacco product control legislation under the Food Act 1983. Modeled on similar legislation in New Zealand, the proposal included a provision to ban smoking and prohibit the ownership of tobacco and vape products by those born after 2005.

    Postponing the year limit will allow more time for community education, a robust implementation plan and to ramp up enforcement, according to Khairy.

    The health minister has been pushing for the Tobacco and Smoking Control Bill in line with efforts to make Malaysia a tobacco-free country by 2040.

    He said cigarette smoking would cost the government MYR8 billion ($1.8 billion) to treat lung cancer, heart problems and chronic obstructive pulmonary disease by 2030.

    The cabinet gave the green light for the bill on July 14, and it will be tabled and put to a vote in the Parliament’s Lower House this week.

    BAT Malaysia said the proposed generational smoking ban is a prohibitive way to reduce the health impact of smoking and will only fuel the illicit tobacco market, which already accounts for almost 60 percent of tobacco sold in Malaysia.

    “It has never been tested in the real world, lacks any scientific evidence of effectiveness and is likely to be detrimental to our country’s health agenda,” BAT Malaysia Managing Director Nedal Salem was quoted as saying by The Edge Markets.

    He said the Ministry of Health (MOH) should pursue a science-based regulatory framework, informed by the positions of countries such as the U.K., where vaping is acknowledged as significantly less harmful and a viable alternative to reduce smoking prevalence.

    BAT Malaysia called on the MOH to include industry players in the overall consultation process in developing appropriate regulations for vapor products.

  • Kiwi Generational Ban Gets First Reading

    Kiwi Generational Ban Gets First Reading

    Photo: Tom

    A historic smokefree bill to ban smoking for next generation up for first reading in New Zealand, reports the NZ Herald.

    Announced last year, the proposed legislation prohibits people born after Jan. 1, 2009, from purchasing tobacco products.

    The plan is part of a push to drop daily smoking rates in New Zealand to less than 5 percent across all population groups by 2025. In 2019–2020, it sat at 13.4 percent.

    Introduced by the labor party, the legislation already enjoys broad support in Parliament.

    The sole voice opposing it outright is the ACT party, with health spokeswoman Brooke Van Velden saying prohibition will only fuel a black market.

    Critics say the measure will likely fuel an already growing black market for cigarettes and that more support is needed for people to transition to vaping.

    The Ministry of Health acknowledges as much. Its regulatory impact statement says there is already a growing illicit market and that the policy changes were “likely to exacerbate this.”

    The government aims to pass the bill by December, meaning that, all going to plan, those aged 14 in 2023 will be banned from purchasing tobacco.