Blog - Tobacco Reporter

EU Rules Thwart Danish Plan to Restrict Smoking

The Danish government’s plan to ban those born after 2010 from buying nicotine products has been blocked by the European Union’s rules, reports EURACTIV.

The Danish government’s health reform package was introduced in March of this year but immediately faced feasibility questions.

EU rules make it impossible for member states to ban or restrict tobacco marketing. “The ministry of health, therefore, considers that a ban on the sale of tobacco and nicotine products to people born in 2010 or later would require an amendment to the European Tobacco Products Directive,” wrote Health Minister Magnus Heunicke in a parliamentary answer earlier this week.

April 8, 2022

Myanmar to Implement Standardized Packaging

Myanmar is set to implement the Standardized Packaging Notification that was issued by the country’s Ministry of Health Oct. 12, 2021, according to Eco-Business.

The notification will go into effect April 10, 2022, followed by a 90-day phase out period for old tobacco packaging; old packaging must be phased out by July 12, 2022.

New packaging must be a standardized dull dark brown color, be flat, smooth and devoid of any attractive colors, designs or decorative elements. Pictorial health warnings are required to cover 75 percent of the packaging’s front and back surfaces. Tobacco product packages include boxes, cases, cartons, etc.

“With standardized packaging, Myanmar will be implementing a highly effective public health policy that will help denormalize tobacco use,” said Ulysses Dorotheo, executive director of the Southeast Asia Tobacco Control Alliance. “We look forward to the full and strict implementation of this regulation and call on the government to swiftly identify and penalize any tobacco company that does not comply by the April 10 deadline.”

“Standardized packaging is a cost-effective and strategic way to discourage tobacco use; it prevents the tobacco industry from using packaging to attract consumers in a creative but deceptive way. Pictorial health warnings more effectively convey to the public the dangers of tobacco use,” said Dorotheo.

April 8, 2022

Study: Vape Bans Lead to More Smoking

A new study in Value in Health shows that local vape bans are leading to higher rates of combustible cigarette smoking, according to Filter.

The study used state-level cigarette sales data, showing that Massachusetts had 7.5 percent higher than expected per capita cigarette sales following a full ban on nicotine vapor products. Rhode Island and Washington, which both enacted nontobacco-flavored nicotine vape bans, showed an average estimate of 4.6 percent higher than expected per capita cigarette sales.

Researchers suggested that an additional 3.4 million cigarette packs were sold through convenience stores in those states during the three-month study period.

The study was funded by Juul Labs.

April 8, 2022

Canada Proposes Federal Vape Tax

The Canadian government has proposed the country’s first federal vape tax, which would take effect Oct. 1 if passed, according to Vaping360.

The tax applies only to nicotine-containing products, including pod-style and cartridge-style refills, disposable vapes and bottled e-liquids as well as nicotine base for DIY liquids. It does not apply to hardware that is sold without e-liquids. The tax also includes an option for Canadian provinces to add on their own, equally large, taxes.

Vaping products would see a tax of CAD1 ($0.97) per 2 mL for the first 10 mL of e-liquid in any sealed container and $1 per 10 mL for additional liquid in the same container. Sealed pods would be taxed separately at a minimum of $1 per pod.

Retailers would have until Jan. 1, 2023, to sell any untaxed stock they still have on Oct. 1 when the law would go into effect.

The tax is awaiting a vote by Parliament’s House of Commons, which is expected to take place either at the end of April or beginning of May.

April 8, 2022

BAT to Upgrade Kanfanar Factory

British American Tobacco is investing more than €80 million ($87 million) to upgrade its cigarette factory in Kanfanar, Croatia, to make new categories of tobacco products, reports SeeNews, citing Croatian prime minister Andrej Plenkovic.

BAT acquired the cigarette factory on the Istria peninsula in 2015 when it took over Tvornica Duhana Rovinj for more than €500 million. Under the deal, BAT was obliged to maintain production at the factory in Kanfanar for at least five years.

In September 2020, Plenkovic said the government was in talks with BAT on the company’s plans to relocate production from the factory to another country, following media reports that BAT might leave due to worsened business conditions in Croatia.

In May 2021, BAT said it would start producing heated tobacco products in Kanfanar.

April 8, 2022

Smoore Revenue Jumps Nearly 40 percent

Smoore reported revenues of CNY13.75 billion ($2.16 billion) in 2021, up approximately 37.4 percent over the previous year.

The company maintained its position as the world’s largest manufacturer of vaping devices. According to Frost and Sullivan, Smoore’s share of the global vaping devices market increased to 22.8 percent in 2021 from 18.9 percent in 2020.

Smoore attributed its strong performance largely to the success of its flagship FEELM closed-system brand. To date, vaping devices with FEELM atomizers have been exported to 50 countries in Europe, America, East Asia, Africa and Oceania.

Smoore invested more than CNY670 million in research and development during 2021, representing an increase of approximately 59.7 percent over the previous year. “The driving force of the atomization industry is technological innovation, which brings fundamental breakthroughs in product safety and flavor reproduction,” said Smoore Chairman Chen Zhiping in a statement.

As of Dec. 31, 2021, Smoore had filed 3,408 patent applications, covering innovations relating to temperature control, heating elements, leakage-prevention and e-liquid storage, among other technologies.

The company recently set up a risk-assessment laboratory to help customers comply with the EU’s Tobacco Product Directive, along with seven fundamental research centers in China and the United States. It also installed a fully automated production line for vapor product assembly and packaging with a capacity of 7,200 standard vaporizers per hour.

In 2021, Smoore introduced the world’s first ceramic coil disposable pod solution. In January 2022, it showcased the world’s thinnest ceramic coil vape pod solution, FEELM Air in London.

The company has pledged to achieve carbon neutrality in its direct and indirect production and operational activities by 2050.

Frost and Sullivan expects the global market for vaping devices to grow at a compound growth rate of approximately 25.3 percent.

April 8, 2022

Politicians Urged to Debate Vaping in Australia

The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) is urging Australian politicians to debate vaping in the runup the country’s federal election on May 21.

According to the advocacy group, Australian politicians who recognize the public health potential of vaping will be rewarded with votes, “yet most remain too scared to promote the world’s most effective smoking cessation tool.”

“Australia’s political leaders need to pull their heads out of the sand,” said Nancy Loucas, executive coordinator of CAPHRA. “Annually, over 20,000 Australian smokers die prematurely from smoking-related illnesses, and 2.3 million still smoke. Alarmingly, however, nobody wants to seriously fix successive governments’ failure to reduce tobacco harm.”

Australia is the only Western democracy that requires a nicotine prescription to vape. Further, its Department of Health’s Draft National Smoking Strategy 2022–2030 proposes additional measures to prevent smokers from switching to safer nicotine products.

Loucas suspects that tobacco tax revenues are one of the reasons that vaping has been buried in the election debate. Ongoing increases to tobacco excise have made it the fourth-largest individual tax collected by Australia’s federal government at an estimated $15 billion per financial year, according to CAPHRA.

The group notes that nearly 70 countries have adopted regulatory frameworks on safer nicotine products. All of them have reported a dramatic decline in smoking prevalence since.

“Australia is light-years behind the U.S., U.K. and New Zealand, with some key Asian countries now looking to lift their failed vaping bans. If campaigning Australian politicians really want to save lives this election, well here is their best opportunity by simply a stroke of the pen,” said Loucas.

April 7, 2022

Thailand to Confirm Ban on E-Cigarettes

Thailand’s government has rejected an initiative to legalize and regulate nicotine vaping products, opting, instead, to reconfirm the country’s ban on sales and imports of e-cigarettes, according to Vaping360.

Thailand’s ban has been in place since 2014.

The National Tobacco Products Control Committee upheld the ban in a meeting last week, and Public Health Ministry Permanent Secretary Kiattiphum Wongrajit supports the decision. The decision will go to the cabinet for formal approval, and the cabinet is not expected to overrule the decision.

Thailand’s tobacco committee has stated that the country should uphold the ban to prevent cigarette addiction by children and adolescents.

Minister of Digital Economy and Society Chaiwut Thanakamanusorn has urged the government to end its ban on vapes, which he believes offer a low-risk alternative for smokers. As recently as January, he had planned to set up a working group to study the issue and consider public opinion.

April 7, 2022

Imperial Brands Issues Trading Update

Imperial Brands continues to perform in line with its five-year strategy launched in 2021, the company announced in a trading update.

“Focused investment in our top five combustible markets, which account for around 70 percent of adjusted operating profit, has driven an increase in aggregate market share for those markets,” the company wrote. “Gains in the U.S., U.K. and Australia more than offset declines in Germany and Spain. These share gains were achieved while maintaining strong pricing discipline, and overall tobacco volumes are in line with expectations.”

According to Imperial Brands, consumers have responded positively to the pilots of its Pulze heated-tobacco system in Greece and the Czech Republic and an improved consumer marketing proposition for its Blu vapor product in the U.S. “We are making good progress against our strategic objective of building a sustainable, consumer-centric next-generation product (NGP) business, and we will provide an update on our next steps at the interim results,” the company wrote.

Imperial Brands expects first-half NGP revenues to be slightly ahead of the prior period, driven by growth in Europe.

“We are on track to deliver full-year results in line with our revised guidance issued on 15 March, with expected full-year net revenue growth of around 0 [percent to] 1 percent on a constant currency basis and adjusted operating profit growth of around 1 percent,” Imperial said.

The company expects first-half group adjusted operating profit to grow by around 2 percent on a constant currency basis, benefiting primarily from reduced losses in NGP. “As expected, tobacco performance will be weighted to the second half,” the company wrote. “First-half tobacco operating profit will be broadly flat on last year on a constant currency basis, with increased investment behind our strategy offsetting the benefit of reduced U.S. litigation costs compared to last year.”

In the wake of Russia’s invasion of Ukraine, Imperial Brands is continuing negotiations with a local third party about an orderly transfer of its Russian assets and operations as a going concern.

April 6, 2022

Alibaba to End Sales of Vaping Products

Alibaba International Station announced that, beginning May 1, it will no longer allow the sale of vaping products, according to a report by Panda Daily. The cross-border trade B2B e-commerce platform’s ban will include cartridges, e-liquids, hardware and all other vaping-related products.

Alibaba is one of the world’s largest retailers and e-commerce companies.

In March this year, the State Tobacco Monopoly Administration of China announced new rules for e-cigarettes, which are scheduled to come into force on May 1.

After the document was issued, many e-cigarette manufacturers said that they would stop the production of e-cigarettes with fruit flavors in the domestic market. Therefore, under the new regulations, the prices of e-cigarettes have been rising. Many brands raised the price of their e-cigarettes with various fruit and soda flavors, with prices increasing between CNY20 ($3.14) and CNY30.

According to a report released by iiMedia Research, the retail sales of the global new tobacco market reached CNY360.5 billion in 2021, an overall increase of 25.6 percent, while China’s domestic sales increased by 73 percent. In addition, according to the Blue Book of the Electronic Cigarette Industry in 2021, in terms of export, the total output value of electronic cigarettes exports reached CNY138.3 billion, and there are more than 1,500 e-cigarette manufacturers in China.

April 6, 2022