Blog - Tobacco Reporter

Report: Paper Market to Hit $1.58 billion

The global tobacco paper market will grow from $1.23 billion in 2020 to $1.58 billion by 2028 at a compound annual growth rate of 3.04 percent, according to a report by The Brainy Insights.

The authors of the study attribute the growth to an increase in demand for treeless cigarette rolling papers and the popularity of roll-your-own (RYO) cigarettes, among other factors.

“Tobacco paper vendors are now focusing on eco-friendly cigarette papers,” The Brainy Insights wrote in a press note. “They now offer eco-friendly products, for instance, tree-less cigarette paper and filter tips. Different fruit pulp and vegetable pulp are now getting used for the rolling papers in place of trees by the tobacco paper manufacturers.”

Other developments discussed in the report include slow burning low-odor papers and products that are easier to roll. The authors also suggest that strict regulation of vapor products is driving some vapers toward RYO cigarettes.

April 13, 2022

China Releases Vapor Product Standards

China’s market regulator today unveiled technical standards for e-cigarettes that will go into effect starting Oct. 1.

In a public document, the State Administration for Market Regulation listed the requirements for design, chemical compounds and the mechanics for e-cigarettes that domestic manufacturers must meet in order to sell their products, according to Channel News Asia.

In March, Chinese tobacco authorities issued a finalized version of rules that stipulate other requirements for e-cigarette companies in China.

Most notably, the rules state that e-cigarette companies may only sell their products through authorized channels, and also bar vendors from selling e-cigarette flavors other than tobacco.

The Beijing Business Today revealed that many flavored vape products have seen prices increase up to CNY30 ($4.72). The Forward Industrial Research Institute has recently reported that in China there are approximately 1,500 vape manufacturers and brand enterprises, and over 100,000 e-cigarette supply chains and related service enterprises, providing employment to an estimated 5.5 million people.

The research firm also found that in 2021, domestic e-cigarette sales totaled about CNY19.7 billion, with an annual growth of 36 percent.

April 12, 2022

Vaporesso Unveils New Logo

Vaporesso revealed its new logo during the Vapexpo event in Lille, France. The China-based vaping device manufacturer’s new logo features the letter “V” at the forefront, encircled behind by the letter “O.”

The “O” symbolizes a vapor ring that opens up. Beyond the visual, the “O” also represents the joy, love and hope that the brand brings. The “V” symbolizes the passion that characterizes the vaping community. It is an ode to the vapers that Vaporesso has built and grown alongside, according to a press release.

“‘V’ and ‘O’ are the defining symbols for Vaporesso. On our journey to push the envelope, we hold onto a craftsman’s heart and ambition. With our in-house tech and expertise, we will grow along with our users and exceed expectations and limitations,” says Thalia Cheng, chief marketing officer of Vaporesso.

The presentation of the new logo is the first step in a rebranding campaign. Also during Vapexpo, Vaperesso introduced its latest technology and products. New products included the iTank with its patented Turbo Airflow System, the GTi coil platform and the GEN 200, 8S and FIT.

Vaporesso recently launched its first flagship store in Marseille, France, in December 2021. Vaporesso also plans to open stores in Paris and other major French cities.

April 12, 2022

Daniel McGee Joins Keller and Heckman

Daniel P. McGee has joined Keller and Heckman’s expanding tobacco and vapor practice as counsel.

Prior to joining Keller and Heckman, McGee worked as in-house counsel for several multinational tobacco, vapor and CBD companies, where he honed his skills advising on compliance and regulatory issues related to tobacco, vapor, nicotine, hemp, CBD and related products.

McGee has experience counseling companies on a broad range of complex tobacco and U.S. Food and Drug Administration regulatory matters and developing strategies to help companies bring new products to market.

“Daniel’s expertise and industry perspective will be invaluable to Keller and Heckman clients who are carefully navigating the challenges and pitfalls of a highly regulated and rapidly evolving legal landscape,” said Azim Chowdhury, a Partner in the firm’s tobacco and vapor and food and drug practices.

“In addition to expanding our tobacco and e-vapor capabilities, we are especially looking forward to utilizing Daniel’s expertise in state law compliance, particularly for clients expanding into the hemp and CBD categories.”

“The addition of Daniel to our practice demonstrates Keller and Heckman’s commitment to helping our clients understand and comply with continuously evolving regulations in this growing field,” said Richard Mann, chair of Keller and Heckman’s management committee.

“I am honored to work with Keller and Heckman’s experienced team of tobacco and e-vapor attorneys and to share the corporate perspective with my new colleagues,” said McGee. “After spending the bulk of my legal career as in-house counsel to the tobacco industry, I made a strategic decision to focus on the industry as a whole and join a law firm that is a leader in tobacco regulatory compliance and public policy initiatives.”

McGee received his J.D. degree from the University of Oregon School of Law and his B.A. degree from Boston College, where he graduated with honors.

April 12, 2022

Report: Counterfeiting Poses Serious Risk

The Intellectual Property Crime Threat Assessment 2022 report by the EU Intellectual Property Office and Europol shows that piracy and counterfeiting pose a serious threat to the European economy as well as people’s health and well-being.

Imports of fake and illicit goods reached €119 billion ($129.61 billion) in 2019, which represented 5.8 percent of all goods entering the EU zone.

More than 66 million counterfeit items were seized by EU authorities in 2022 as pharmaceuticals, food items, cosmetics and toys, among other goods, were targeted by criminals and counterfeiters who took advantage of the pandemic.

Tobacco products, too, feature prominently among counterfeited products.

April 12, 2022

Malaysia Poised to Legalize E-Cigarettes

Malaysia’s longtime ban on the sale of vaping products is set to end, according to the Malaysian Organization of Vape Entities (MOVE).

Taking effect on Aug. 3, the regulation of vaping devices precedes the imminent legalization of vape sales. It follows years of campaigning by MOVE and other tobacco harm reduction supporters.

The Malaysian government has now moved to gazette the Trade Descriptions (Certification and Marking) of Electronic Cigarette Devices Order 2022 under the Trade Descriptions Act 2011. Manufacturers and importers will need to ensure all devices are certified and labeled to show consumers that safety standards have been met and the products are safe to use. All e-liquids will need to be registered.

“This is historic news after a long-fought battle. It paves the way for a legalized market and safer products. Regulating vaping products, restricting sales to adults and applying significant penalties to any breaches will help many more Malaysian smokers to quit deadly cigarettes,” said Samsul Kamal Ariffin, president of MOVE.

Ariffin said that in recent months there have been frustrating parliamentary delays in progressing the Tobacco and Smoking Control Bill—not helped by the pending general election. However, with the safety standards now gazetted, it sets in train the legalization of vape sales.

Regulating, not banning, vaping will not only save smokers lives, [but] it will generate much-needed tax revenue for our country.

Samsul Kamal Ariffin, president, MOVE

“Regulating, not banning, vaping will not only save smokers lives, [but] it will generate much-needed tax revenue for our country, which is desperately needed post-pandemic,” said Ariffin. “This is not only good news for smokers and their loved ones, but every Malaysian will benefit from the extra revenue gained from vape manufacturing, importing and sales. Up until now, it has been a black market with unapproved products not contributing tax and with no safety assurances.”

“The government has done well in preparing the legislation and regulation of products deemed 95 percent less harmful than combustible tobacco. It fully understands that making safer nicotine products legally accessible is the only way to seriously reduce Malaysia’s unnecessarily high smoking rates,” said Ariffin.

The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA), too, expects Malaysia’s smoking rates to decline after the legalization of vapor products. “Malaysia will join 67 other progressive countries worldwide which have adopted regulatory frameworks on safer nicotine products. Importantly, all of them have subsequently registered a dramatic decline in smoking,” said Nancy Loucas, executive coordinator of CAPHRA.

“We’re particularly proud of our member organization MOVE and Samsul’s tireless advocacy over many years. The third of August is worthy of a big celebration and will be well noted across the Asia-Pacific region. Vaping bans fail badly—as Australia is discovering the hard way,” said Loucas.

April 11, 2022

Treat Joins 22nd Century as CSO

22nd Century Group has appointed Calvin Treat as chief scientific officer, effective May 23, 2022. In this new role, Treat will lead the expanding scientific, research and technological operations of the company, leveraging its expertise, IP and partnerships across all three of its alkaloid plant franchises toward becoming a global leader in specialty plant science.

“Dr. Treat brings a wealth of plant-based biotechnology and crop technology experience to 22nd Century at a pivotal time when we are rapidly expanding our global capabilities across all three of our alkaloid plant franchises—tobacco, hemp/cannabis and hops,” said James A. Mish, CEO of 22nd Century Group, in a statement.

“Dr. Treat has spent his career at the largest plant science names in the world, leading their innovations on major crops like corn, soybeans and cotton. We look forward to his leadership as we continue to leverage our extensive technology platform comprising hundreds of patents, extensive know-how and global partnerships supporting our leadership in plant genetics, breeding and cultivation underpinning our growth opportunities across a growing $1.3 trillion worldwide market opportunity.”

“22nd Century is rapidly establishing itself as the global alkaloid plant technology leader, bringing to bear an extensive upstream capability to optimize plant lines and enhance critical commercial traits that directly benefit quality, cost and consumer confidence in the end products. The company is leveraging the most advanced plant science techniques and building a global IP and capability set that may be unrivaled in their respective crops,” said Treat.

“I am excited to join 22nd Century at this pivotal moment to lead the company onto the global stage as more and more of the world’s leading alkaloid plant growers come to recognize the incredible value of 22nd Century’s portfolio.”

Treat previously served as senior vice president and head of crop technology for corn, soybean and cotton at Bayer, where he oversaw more than $2 billion in R&D spending dedicated to seeds, traits and crop protection while also driving tailored solutions to meet grower needs.

Previously, he was the technology lead for Monsanto’s global corn and soy crops, where he merged the soy and corn technology teams to garner synergies across the platforms. While part of the Monsanto teams, he was involved in the launches of multiple technologies, including Roundup Ready 2 Yield soybeans, Intacta RR2 Pro soybeans in South America and Roundup Ready 2 Xtend soybean technology across North America, one of Monsanto’s largest and most complex trait launches. His additional roles at Monsanto included global corn technology lead, global oilseeds technology lead and global soybean breeding lead, among others.

April 11, 2022

Kate Wang Resigns from RLX Committees

Ying (Kate) Wang has resigned as a member and the chairperson of the compensation committee and the nominating and corporate governance committee of RLX Technology’s board of directors to help the company comply with the relevant New York Stock Exchange’s listing requirements on board committees’ independence.

Wang is the co-founder, chairperson of the board of directors and CEO of RLX Technology’s.

Going forward, the compensation committee and nominating committee will be composed entirely of independent directors, namely Zhenjing Zhu and Youmin Xi, RLX Technology announced in a press note. Concurrent with Wang’s resignation from the compensation committee and the nominating committee, Xi was appointed as the chairperson of the nominating committee and the chairperson of the compensation committee.

April 11, 2022

FDA Denies Market Access to Myblu

The U.S. Food and Drug Administration issued marketing denial orders (MDOs) to Fontem US for several Myblu electronic nicotine delivery system (ENDS) products after determining their applications lacked sufficient evidence to show that permitting the marketing of these products would be appropriate for the protection of the public health.

According to a notice published on the FDA’s website, the currently marketed products receiving MDOs include Myblu Device Kit, Myblu Intense Tobacco Chill 2.5% and Myblu Intense Tobacco Chill 4.0%.

In reviewing premarket applications for tobacco products, the FDA evaluates the risks and benefits of those products to the population as a whole, including users and nonusers of the tobacco product, and considers, among other things, the likelihood that those who do not currently use tobacco products will start using those tobacco products.

Based on the information submitted by Fontem US for these Myblu products and the available evidence, the applications lacked sufficient evidence regarding design features, manufacturing, and stability, according to the FDA. Additionally, the applications did not demonstrate that the potential benefit to smokers who switch completely or significantly reduce their cigarette use would outweigh the risk to youth, the agency said.

Tobacco products subject to an MDO may not be offered for sale, distributed or marketed in the U.S.

April 8, 2022

Philippines: Illegal Cigarettes Cost Country Billions of Pesos

The Philippine government is losing about PHP26 billion in taxes annually due to illicit cigarettes, according to The Manila Bulletin.

About 13 percent of cigarettes sold in the Philippines are illegal, stated PBA Party-List Representative Jericho Jonas B. Nograles, citing a Euromonitor International report.

“Euromonitor estimates [that] in some areas in Mindanao, six of 10 cigarettes sold in retail are illegal,” Nograles said.

Outside Mindanao, illegal tobacco trade is prominent in Bataan (31.6 percent), Palawan (24.8 percent), Nueva Ecija (22.2 percent) and Zambales (11.5 percent).

In 2021, the Bureau of Internal Revenue (BIR) collected nearly PHP180 billion in excise taxes from the tobacco industry. The BIR also estimated that the government lost PHP3.8 billion in revenue from 2018 to 2021 due to illicit trade.

Meanwhile, the Customs’ apprehensions on illicit tobacco products reported foregone excise taxes of PHP2.9 billion from 2019 to 2022.

April 8, 2022