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  • Article: Ripple Effect of Restrictive Tobacco Regulations in S. Africa

    Article: Ripple Effect of Restrictive Tobacco Regulations in S. Africa

    South Africa’s 2020 tobacco ban, intended to reduce smoking-related health risks during the COVID-19 pandemic, drove legal sales underground and opened the door for illicit products that today account for as much as 75% of the market, according to law graduate Mukundi Budeli, writing for the Rational Standard and republished by the Free Market Foundation. Budeli said the shift cost the government tens of billions in lost tax revenue, fueled organized crime, and exposed consumers to unregulated and potentially more harmful products.

    He also said the policy hastened the departure of British American Tobacco, which announced the closure of its Heidelberg plant by the end of 2026, which will directly affect 230 employees and is expected to ripple across the broader tobacco value chain, impacting up to 35,000 jobs. Budeli argues that the crisis illustrates the unintended consequences of overly restrictive regulation and calls for a re-evaluation of South Africa’s approach to tobacco policy. He suggests that future governance should strike a balance between public health objectives, economic stability, and individual freedoms to prevent similar market distortions.

    The Free Market Foundation emphasizes that the situation serves as a warning to policymakers about the dangers of regulatory overreach and the need for pragmatic, accountable, and market-aware legislation in the tobacco sector.

  • Black Buffalo Recognizes Retailers as Sales Grow

    Black Buffalo Recognizes Retailers as Sales Grow

    Black Buffalo says it continues to expand its footprint nationwide as demand grows for modern smokeless alternatives, with the brand highlighting strong retail performance across the U.S. With its annual Herd Preferred Awards, the company reported that its top-performing partners — including Sheetz, Wawa, Pilot Company, and Love’s Travel Stops —are driving increased can volume and higher cans per week (CPW), reflecting sustained momentum at the backbar. According to Black Buffalo, its adult consumer base, dubbed “The Herd,” is highly engaged, with shoppers traveling an average of nearly 13 miles to purchase the product, underscoring brand loyalty and pull-through at retail. The company said it remains focused on responsible growth and increasing retail accessibility as it scales distribution across key markets.

  • Next Gen Nicotine Expo to Be Held in London April 23

    Next Gen Nicotine Expo to Be Held in London April 23

    Quartz Media announced that its newest event, Next Gen Nicotine Expo (NGNE), will debut April 23 at the Business Design Centre in London, marking the UK launch of the World Vape Show’s dedicated platform for next-generation nicotine products. The curated B2B event will host up to 50 fully UK-compliant exhibitors, including Garant Pods, PIXL, Pod Salts, and VPR Brands, alongside 500 vetted buyers, offering a focused environment for business and innovation amid the country’s disposable vape ban. NGNE will showcase vape systems, e-liquids, nicotine pouches, heated tobacco, and oral nicotine products, providing a compliance-led, design-driven space for industry growth and networking.

  • TIMB Keeping Tobacco Money Home, Limiting Unregulated Sales

    TIMB Keeping Tobacco Money Home, Limiting Unregulated Sales

    With 67% local financing in place, Zimbabwe has nearly reached its goal of reducing reliance on offshore funding that limits domestic tobacco value retention, according to the Tobacco Industry and Marketing Board (TIMB). TIMB set the goal of 70% local financing, as officials estimate that under external financing models, for every U.S. dollar financed, only 12 cents remains in the country. Tobacco remains the country’s largest agricultural export and second-largest foreign currency earner after gold, generating about $1.2 billion last year.

    Tobacco output exceeded expectations last year, reaching 355 million kg against a 300 million kg target, with projections of around 400 million kg this year, with more than 90% of tobacco under contract arrangements. While production growth has been strong, value addition remains subdued at 10.78% against a 30% target.

    TIMB has also introduced tougher penalties and a biometric grower management system ahead of the new marketing season, significantly raising fines for regulatory breaches. Farmers caught engaging in side marketing will be fined $50 per bale, up from $20, while merchants purchasing such tobacco will pay $200 per bale. Illegal buying point operators, known as “Makoronyera,” risk fines of up to $2,000.

    TIMB confirmed that 48 contractors and 46 Class A buyers have been licensed for the 2026 season, with grading categories streamlined to enhance global competitiveness amid evolving climatic and market conditions. Five firms were barred over compliance issues.

  • BAT Uganda Points to Illicits for 18% Revenue Drop

    BAT Uganda Points to Illicits for 18% Revenue Drop

    British American Tobacco Uganda Ltd. reported an 18% drop in gross revenue to Shs 67 billion ($18.1 million) for fiscal 2025, citing a surge in illicit cigarette sales, according to audited results. Net revenue fell 21% to Shs 36.3 billion ($9.8 million), while total comprehensive income declined 19% to Shs 9.8 billion ($2.6 million). The company attributed the decline to rising tax-evaded cigarette consumption, which research shows reached 45% of the market by December 2025, up from 34% the previous year — equivalent to an estimated Shs 53 billion ($14.3 million) loss in government revenue. Operating costs fell 21% to Shs 24 billion ($6.5 million), but net asset value dropped sharply to Shs 32.5 billion ($8.8 million) from Shs 49.3 billion ($13.3 million) in 2024.

    Despite the downturn, BAT Uganda’s tax contributions rose 4% to Shs 46.4 billion ($12.5 million), aided by capital gains from the sale of a non-strategic asset. The board proposed a final dividend of Shs 199 ($0.054) per share, down 5% from 2024, payable July 31 to shareholders on record as of July 24. Company secretary Paul Mbuga emphasized the need for a multi-agency government response, particularly at the South Sudan border, to combat illicit imports, noting that contraband cigarettes often bypass digital tax stamps and health warnings, undercutting prices and presenting public health risks.

  • Bangladesh Court Gives Authorities 30 Days to Close Hookah Lounges

    Bangladesh Court Gives Authorities 30 Days to Close Hookah Lounges

    Yesterday (March 3), Bangladesh’s High Court ordered authorities to shut down illegal shisha and hookah lounges nationwide within 30 days and issued a statement, questioning why failure to act against such establishments should not be declared unlawful. The bench of Justices Razik-Al-Jalil and Md Anowarul Islam directed secretaries of the home and health ministries, as well as the heads of the Department of Narcotics Control, Rapid Action Battalion, Dhaka Metropolitan Police, and Dhaka North and South city corporations to respond.

    The order followed a public interest writ filed by Supreme Court lawyer SM Zulfiqure Ali Junu, who argued that many lounges operate under the guise of cafés and restaurants without lawful authority, posing serious public health risks. The petition cited violations of the Smoking and Tobacco Products Usage (Control) Act, 2005 (Amended 2013) and the Narcotics Control Act, 2018, alleging that authorities had failed to act despite reports of minors accessing shisha.

  • Irish Authorities Seize 9M Cigarettes on Ferry

    Irish Authorities Seize 9M Cigarettes on Ferry

    Irish authorities seized 9 million smuggled cigarettes at Rosslare Europort in Co. Wexford this week following a routine Revenue search. The haul, from a truck and trailer arriving on a ferry from Dunkerque, France, consisted of Richmond King Size cigarettes with an estimated value of over €8 million, representing a potential loss of more than €6.4 million to the Irish exchequer. A man in his 40s was questioned in connection with the seizure, and investigations are ongoing.

  • Geek Bar Returning to Europe

    Geek Bar Returning to Europe

    Geek Bar announced it is officially returning to the European market, launching its Geek Bar Spark across “select countries” this month, with “additional markets and flavor options to follow.” The new-generation, reusable system includes a fast-charging battery, supports up to 1,000 puffs per prefilled pod, and offers new “Europe-specific flavors,” including Moonshine Cherries, Tropical Punch, Pineapple Lemon Fizzy, and Apple Cider.

  • Herzog Talks Industry Shifts, Expects Market to Hit $67B by 2035

    Herzog Talks Industry Shifts, Expects Market to Hit $67B by 2035

    Goldman Sachs Managing Director Bonnie Herzog described the U.S. nicotine market as “attractive and growing,” projecting total revenues to reach about $67 billion by 2035 as the profit pool shifts decisively toward smoke-free products. Speaking last week at CSP’s Convenience Retailing University, she said cigarettes, which currently generate about 70% of industry operating profit, are expected to fall to roughly 50% by 2035, with smoke-free categories becoming the primary engine of profit growth due to stronger unit economics. Smoke-free products already account for about 48% of U.S. nicotine volumes, a figure she expects to rise to around 75% over the next decade, driven by downtrading and cross-category movement.

    On e-vapor, Herzog said illicit products represent roughly 70% of the market today, a dynamic she said is suppressing growth in the formal channel and weighing on retailer sentiment amid limited enforcement. While she expects illicit penetration to decline over time, she cautioned that vapor will likely underperform other reduced-risk categories until enforcement improves, adding that British American Tobacco is positioned to remain the largest branded player.

    In modern oral, Herzog forecast nicotine pouches to reach nearly $11 billion in revenue by 2035 and become the second-largest category by volume behind e-vapor. She highlighted continued momentum for Zyn from Philip Morris International, citing retailer survey data showing strong fourth-quarter gains supported by promotions, and described Velo Plus from Reynolds American Inc. as a “fierce” competitor in the expanding pouch segment.

  • BAT’s Velo Pouches Back on Market in Kenya

    BAT’s Velo Pouches Back on Market in Kenya

    BAT Kenya resumed sales of its Velo oral nicotine pouches following regulatory clarity, signaling a renewed push into non-combustible products amid declining cigarette consumption, according to Capital Business. Company officials said this “regulatory clarity” involved confirming that oral nicotine pouches can be marketed and retailed under current rules rather than being in a grey zone or treated the same as banned products. The move supports the company’s strategy to diversify revenue streams in a market challenged by rising illicit tobacco sales. BAT Kenya reported a 10% drop in turnover in 2025 to Sh23.2 billion ($176.6 million), with Velo contributing about Sh232 million ($1.8 million), or roughly 1% of total revenue, between July and December 2025.

    Finance Director Philemon Kipkemoi said the return was enabled by a regulatory environment now accommodating oral nicotine products. With local manufacturing divested, Velo is currently imported from Pakistan, though local production may be reconsidered depending on performance. Globally, British American Tobacco has reached 34 million non-combustible product users, 68% of its 2030 target, and aims for 50% of revenue from such products by 2035. In Kenya, Velo could contribute 15–25% of total revenue within three to five years, forming a key part of BAT’s strategy to expand alternative nicotine products in line with evolving regulations and consumer trends.