Blog - Tobacco Reporter

U.K. Acknowledges Vaping’s THR Role

The U.K. Department for Health and Social Care’s (DHSC) has acknowledged the role of vaping in smoking harm reduction, according to the U.K. Vaping Industry Association (UKVIA).

In its review of the Tobacco and Related Products Regulations (TRPR) laws, which was published on March 25, the DHSC noted existing TRPR regulations “met their original objectives” and that they “could not be better achieved through alternative regulatory measures.”

The government has set itself a target of reducing the amount of U.K. smokers to just 5 percent of the population in the next eight years with the TRPR and other developments, such as the yet to be published Tobacco Control Plan (TCP), set to play a major role in helping to realize that ambition.

“While at first glance this appears to be ‘status quo,’ I see this as a win for the U.K’s vaping sector as the review clearly states the positive impact that vaping can have in helping people to quit smoking,” said John Dunne, director general of the UKVIA.

“As part of the TRPR consultation we submitted a whole raft of proposals aimed at creating a better commercial and regulatory environment to make it easier for the industry to help people trying to give up smoking and it is good to see those acknowledged.”

I see this as a win for the U.K’s vaping sector as the review clearly states the positive impact that vaping can have in helping people to quit smoking.

John Dunne, director general, UKVIA

The UKVIA, which promotes vaping as a much less harmful alternative to smoking and its significant impact in helping smokers quit, as well as dispelling the misinformation on vaping that exists, submitted a landmark package of recommendations to the TRPR consultation, including:

The use of government-approved expert health claims on products to address misinformation leading to misperceptions on vaping, and therefore encourage smokers to switch
Greater opportunities to engage with smokers, as current regulations restrict vaping’s ability to provide smokers with evidence-based knowledge to make informed decisions when looking to quit
The extension of certain regulations to cover additional vaping products, such as non-nicotine e-liquids, thereby ensuring a highly responsible and safe industry.

“What this tells me is that the industry is doing its job in bringing to the fore some of the things that have been holding back vaping’s ability to support the government’s smokefree targets to full effect,” said Dunne.

“We have to remember this is only a review of all points made and some initial positions the government is taking; our hope now is that those proposals and recommendations are carried forward and manifested in the Tobacco Control Plan.

“So, while in some respects it is disappointing that the government hasn’t taken forward the measured, evidence-based reviews put forward by the UKVIA, there is still positivity that in addition to forthcoming TCP, our recommendations can also inform and influence the Health Disparities White Paper and independent review into tobacco control policies.”

March 27, 2022

RAI Announces Site Closures

Reynolds American Inc. (RAI) will reduce its U.S. manufacturing footprint and close of some sites to position the company for future growth, the company announced.

The decision follows a detailed strategic review of the company’s operations.

“These decisions are never easy,” said RAI President and CEO Guy Meldrum in a statement. “We are focused on delivering long-term, sustainable growth in a rapidly evolving environment. While these changes are necessary to support the future of our business, they will be extremely difficult for our employees at the manufacturing sites that are closing and today we are focused on providing support to them through this transition.”

Beginning next month and progressing through 2024, Santa Fe Natural Tobacco Co.’s operations in Oxford, North Carolina, and American Snuff Co.’s operations in Winston-Salem, North Carolina will move to Tobaccoville, North Carolina. ASC’s Traditional Oral operations in Memphis, Tennessee, will move to Clarksville, Tennessee.

More than half of employees across the closing facilities will have the opportunity to transfer sites. These changes will reduce the company’s full-time employee workforce by approximately 350 roles by 2025.

“After our review, it became clear that we had to align our manufacturing footprint with our growth strategies,” said Bernd Meyer, executive vice president of operations at Reynolds. “Many of our employees will be given the opportunity to transfer sites. Our employees displaced through this process will receive a comprehensive severance and benefits package, including outplacement support to help as they transition to the next phase of their careers.”

March 25, 2022

Medicago Urged to Ditch Philip Morris

A coalition of health groups have called on the Canadian government to replace Philip Morris International as a major shareholder in Medicago.

In late February, Health Canada authorized Medicago’s Convifenz Covid-19 vaccine, which is manufactured with the help of tobacco plants. Soon after, the World Health Organization signaled it was unlikely to grant the vaccine emergency approval due to Medicago’s ties to the tobacco industry. PMI owns about a third of the biopharmaceutical company.

“There is a simple pathway to get this vaccine approved. Our governments should stand up to Philip Morris,” said Flory Doucas, co-director of the Quebec Coalition for Tobacco Control.

“Instead of asking the WHO to contravene its own tobacco control treaty, which was ratified by Canada and 181 other countries, the federal Minister of Health and his Quebec counterpart should focus their energies on convincing the tobacco giant to withdraw as a shareholder of Medicago.”

According to the health groups, Medicago has already signaled that it is seeking alternative investors. The Canadian and Quebec governments, they say, should help facilitate such a transition.

The health groups cite Article 5.3 of the WHO Framework Convention on Tobacco Control, which obliges parties to ensure that their policies are protected “from commercial and other vested interests of the tobacco industry.”

“Guidelines for implementing this obligation make clear that ‘the tobacco industry should not be a partner in any initiative linked to setting or implementing public health policies, given that its interests are in direct conflict with the goals of public health,’” the organizations wrote in a press release. “Parties are directed that they ‘should not endorse, support, form partnerships with or participate in activities of the tobacco industry described as socially responsible.’”

March 25, 2022

VPR Settles Auto-Draw Technology Case

XL Vape, VGOD and Saltnic have agreed to pay VPR brands $155,000 to settle patent-infringement litigation related to VPR’s auto-draw technology, according to a press release. As part of the deal, VPR brands has granted each of the companies a non-exclusive license to practice the invention set forth in the disputed intellectual property.

Dating from 2009, U.S. patent 8,205,622 covers electronic cigarette products containing an electric airflow sensor, including a sensor comprised of a diaphragm microphone. The sensor turns the battery on and off, and covers most auto-draw, button less e-cigarettes, cig-a-likes, pod devices and vaporizers using an airflow sensor rather than a button. The technology is covered under electronic cigarette utility patent

VPR Brands has started to identify and notify over 50 of the leading companies using its auto-draw technology. XL Vape, VGOD and Saltnic were prioritized based on their sales volumes and popularity.

According to VPR Brands, most nicotine vaping devices sold in the U.S. today utilize an auto-draw/button-less technology. The company is investigating all button-less vape devices within the nicotine, CBD, and cannabis space that initiate vaporization from the user’s airflow inhalation as they would be suspect of infringement.

The company says it may also seek a buyer for its patent in the future, citing the example of Ruyan, which in August 2013 sold its e-cigarette patent to Imperial Tobacco group for $75 million.

VPR’s settlement with XL Vape, VGOD and Saltnic follows earlier settlements with Nepa 2 Wholesale and PHD Marketing.

March 25, 2022

PMI Scaling Down Russian Operations

Philip Morris International today announced the concrete steps it has taken to suspend planned investments and scale down its manufacturing operations in Russia, following that country’s military invasion of Ukraine.

PMI said it has discontinued a number of its cigarette products offered in the market and is reducing its manufacturing activities accordingly. It has also suspended marketing activities in the country and canceled all product launches planned for 2022 in Russia, including the launch of its flagship heated tobacco product IQOS Iluma, originally planned for March 2022. In addition, PMI has canceled its plans to manufacture more than 20 billion Terea sticks (for IQOS Iluma) in Russia and the related ongoing investment of $150 million.

PMI’s board of directors and senior executives are working on options to exit the Russian market in an orderly manner, in the context of an increasingly complex and rapidly changing regulatory and operating environment.

“Our focus and all our efforts over the last four weeks have been to ensure the safety and security of our Ukrainian colleagues. We stand in solidarity with the innocent men, women and children who are suffering,” said PMI CEO Jacek Olczak in a statement. “We employ more than 3,200 people in Russia. We continue to support them, including paying their salaries, and we will continue to fulfil our legal obligations. We will continue to make decisions with their safety and security as a priority.”

Russia accounted for almost 10 percent PMI’s total shipment volumes and around 6 percent of PMI’s net revenues in 2021.

March 25, 2022

FDA Marketing Orders for Logic Technology

The U.S. Food and Drug Administration has authorized several tobacco-flavored ENDS products from Logic Technology Development under the Logic Vapeleaf, Logic Power and Logic Pro brands, including devices.

Logic Technology is the vape product arm of Japan Tobacco International.

Based on the Logic’s product applications, the agency concluded that the likely benefit for adult smokers who cease or significantly reduce their cigarette consumption outweighs the risk to youth, provided that the company follows postmarketing requirements to reduce youth access and youth exposure to their marketing.

At the same time, the agency issued marketing denial orders to Logic for multiple other ENDS products, which the company must now remove from the market. Applications for additional Logic products, including menthol, remain under FDA review.

We know that there is a demand among adult smokers to use e-cigarette products to try to switch from more harmful combusted cigarettes, but millions of youth are using these products and getting addicted to nicotine. The balance of these issues was considered by the agency’s career scientists when evaluating the potential marketing of e-cigarette products.

Robert M. Califf, FDA Commissioner

The FDA’s review of the applications for the products authorized today determined that the marketing of the tobacco-flavored products and associated components is appropriate for the protection of the public health.

Specifically, available data showed that current tobacco users who used these tobacco-flavored products were more likely to significantly decrease their use of combusted cigarettes and that those who don’t smoke are unlikely to start using these products.

Most study subjects decreased the number of combusted cigarettes they smoked each day by greater than 80 percent, from an average of 13-16 cigarettes per day at screening to 1-2 by day 59. The data also showed that the products produce fewer or lower levels of some toxins, like carbon monoxide, than combustible cigarettes and the products’ abuse liability, or their ability to encourage continued tobacco use, addiction or dependence, was lower than that of combusted cigarettes.

“We know that there is a demand among adult smokers to use e-cigarette products to try to switch from more harmful combusted cigarettes, but millions of youth are using these products and getting addicted to nicotine,” said FDA Commissioner Robert M. Califf in a statement.

“The balance of these issues was considered by the agency’s career scientists when evaluating the potential marketing of e-cigarette products. They have made great progress and I know they will use the best available evidence with the most robust methods to ensure that products that continue to be marketed are appropriate for the protection of the public health.”

“We take the quality of our products extremely seriously, along with the way they are marketed and sold, and we are proud that we have received marketing orders from FDA for our Logic products to remain on retailers’ shelves,” said Corrado Mautone, president of Logic, in a statement.

“By receiving FDA marketing orders now, Logic can remain a reliable partner for retailers going forward,” said Mautone.

Logic, based in Teaneck, New Jersey, is a part of the JT Group of Companies. JTI is a leading international tobacco and vaping company with operations in more than 130 countries. Headquartered in Geneva, Switzerland, JTI employs over 50,000 people and was awarded Global Top Employer for the eighth consecutive year.

The FDA has taken action on approximately 99 percent of the nearly 6.7 million ENDS products submitted for premarket authorization, including issuing marketing denial orders for more than 1 million ENDS products.

The agency says it is close to making additional decisions on applications for popular ENDS products that account for a large part of the market. The continued marketing of these products has the potential to have a substantial public health impact—either positively or negatively—as they hold an overall large market share and are used by a lot of people.

March 24, 2022

South Korea Smoking Rate Hits All-Time Low

The smoking rate of South Koreans aged 19 and up fell below 20 percent for the first time in 2020, reports the Yonhap News Agency, citing a new Statistics Korea study.

The smoking rate of Korean adults declined to a record low of 19.2 percent in 2020, down 1 percentage point from 20.2 percent a year earlier.

The smoking rate fell 7.7 percentage points from 26.9 percent in 2010.

The results cover those who have consumed more than five packs of cigarettes over their lifetime and are currently smoking.

In 2020, the smoking rate among Korean men aged 19 and older reached a record low of 33 percent, down from 34.7 percent a year earlier.

The corresponding rate for Korean women aged 19 and older came to 5.5 percent, down from 5.9 percent in 2019.

Experts attributed the decline in smoking to growing public awareness of health and the government’s anti-smoking drive.

In January 2015, the government raised the price of cigarettes by 80 percent to KRW4,500 ($3.70) per pack from KRW2,500.

March 24, 2022

Dubai Businessman Buys Mostar Tobacco Factory

Jassim Abdullah Ibrahim Alhuwai is buying the Mostar Tobacco Factory in Bosnia and Herzegovina after making the best offer at public sale, reports the Sarajevo Times.

Alhuwai will pay BAM6 million ($3.4 million) for the factory. He has already paid BAM10,000 as a deposit and has been given a deadline of April 22 to pay the remainder.

“I hope that the investor from Dubai will pay the money by the appointed deadline and that our agony will end, that there will be the bridging of our service periods and that some money will be paid to us,” former Mostar worker Aida Kajtaz said.

This was not the first attempt to sell the factory. Previously, Mirsad Rahimic, a Swiss entrepreneur and Mostar native, attempted to buy the factory, but there were a number of complications that arose during the purchase process.

Production at the factory ended in 2007, but workers campaigned to restart manufacturing.

Mostar Tobacco Factory complex has an estimated value of BAM21 million, but due to lawsuits and debts, the Mostar Municipal Court declared that the complex should have been sold for BAM3 million.

March 24, 2022

Kenya: Push to End Tobacco Farming

Kenya’s Ministry of Health along with the World Health Organization and the U.N. Food and Agriculture Organization (FAO) launched an initiative to end tobacco farming in the country, reports Xinhuanet.

The initiative is called the Tobacco-Free Farms project, and it will support farmers’ shift to alternative crops, such as legumes, that are less harmful to human health and the environment. It was launched in Migori, which is located in western Kenya.

The goal is a gradual phasing out of tobacco farming at the smallholder level, replacing tobacco with crops that will boost food security and help achieve health-related sustainable development goals.

According to Mutahi Kagwe, cabinet secretary in the Ministry of Health, tobacco has worsened the burden of respiratory diseases in the country, harmed vital ecosystems like watersheds, escalated gender inequality, rural poverty, deforestation and soil degradation.

Ministry of Health data shows that more than 6,000 Kenyans die annually from tobacco-related diseases, and 2.7 million adults and 220,000 children use tobacco products daily.

March 24, 2022

Canada Opens Consultation on Tobacco and Vaping Act

The government of Canada has opened public consultation on the Tobacco and Vaping Products Act (TVPA) ahead of its mandatory parliamentary review. Stakeholders can provide input until April 27, 2022.

In 2018, the TVPA was amended to protect youth and nonsmokers. The amended act recognized that vaping was significantly less harmful than smoking, and smokers that switched to vaping could reduce their exposure to thousands of chemicals. The act introduced measures to protect youth through various labeling and promotion regulations.

Tobacco harm reduction advocates welcomed the consultation. “Vaping has helped millions of smokers quit and has the potential to help millions more if it weren’t for the misrepresentations of the industry by media and misperceptions surrounding the product itself. It is imperative that Parliamentarians have the opportunity to hear from a wide range of experts as part of the TVPA review process,” said Darryl Tempest, government relations advisor to the Canadian Vaping Association (CVA).

Health Canada’s discussion paper states, “For adults who smoke, there appears to be a lack of awareness that vaping products are a less harmful source of nicotine for those who currently smoke and switch completely to vaping. A 2020 survey found that only 22 percent of current smokers recognized that vaping is less harmful than smoking cigarettes.”

In its consultation submission, the CVA will urge Health Canada to rectify this through the issue of relative risk statements for approved use by licensed specialty vape shops. In 2018, Health Canada proposed a “List of Statements for Use in the Promotion of Vaping Products.” According to the CVA, this proposal has been put on the back burner and has languished in Health Canada’s bureaucracy to the detriment of potential public health gains from smokers switching to vaping.

“Instead of issuing reasonable statements for use by specialty vape shops, the TVPA has effectively gagged the vape industry through Section 30.43,” the CVA wrote in a press release. Section 30.43 prohibits “the promotion of a vaping product in a manner that could cause a person to believe that health benefits may be derived from the use of the product or from its emission or by comparing the health effects arising from the use of the product or from its emissions with those arising from the use of a tobacco product or from its emissions. The purpose of this prohibition is to prevent the public from being deceived or misled with respect to the health hazards of using vaping products.”

“The CVA looks forward to actively participating in the review process and will advocate for enhanced measures to protect youth as well as increased smoker-targeted messaging on the benefits of switching to vaping. We encourage all stakeholders to submit feedback,” said Tempest.

March 24, 2022