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  • BAT Signals Possible Job Cuts from AI Plan

    BAT Signals Possible Job Cuts from AI Plan

    British American Tobacco signaled potential job cuts as part of a new artificial intelligence-driven productivity initiative, while reporting higher annual profits fueled by strong performance from its Velo nicotine pouch. Interim finance chief Javed Iqbal said the program will focus on automation, data analytics, and operational simplification, though the extent of workforce reductions remains unclear. BAT reported adjusted earnings per share growth of 3.4%, with newer product revenue rising 7% for the year and reaching 18.2% of total sales. Velo has gained traction in the United States, becoming the second-largest nicotine pouch brand by market share behind Philip Morris International’s Zyn, supported by competitive pricing and higher nicotine strength offerings.

    Despite momentum in smoke-free products, BAT continues to face regulatory and market headwinds, according to Reuters. The company said illicit vape products are weighing on Vuse performance, with U.S. vape sales expected to remain flat in 2026. Additionally, higher tobacco duties and expanding illicit trade in Australia, along with tax and pricing regulations in Bangladesh, contributed to a more than 7% decline in revenue across BAT’s Asia-Pacific, Middle East, and Africa region, limiting overall group revenue growth to 2.1% in 2025.

  • Charlie’s Holdings’ 25K-Puff Vape Cleared in Calif.

    Charlie’s Holdings’ 25K-Puff Vape Cleared in Calif.

    Charlie’s Holdings, Inc. announced that California regulators have added its Virginia Tobacco 25K-puff SBX disposable vape to the state’s Unflavored Tobacco List (UTL), which, according to the company, makes it the first 25,000-puff vaping device authorized for legal sale in the state. The approval follows California’s strengthened flavor restrictions under Assembly Bill 3218, which requires that only products classified as unflavored and included on the UTL can be sold in the state. Company executives said the listing positions the SBX device to access California’s retail market while underscoring Charlie’s focus on regulatory compliance and youth-access prevention.

  • Momentum Driving BAT Confidence in 2026 Delivery

    Momentum Driving BAT Confidence in 2026 Delivery

    British American Tobacco reported “accelerating momentum” in 2025, driven by strong U.S. combustible sales and rapid growth of its Velo nicotine pouch brand, while total smokeless consumers rose to 34.1 million. The company said new category revenue returned to double-digit growth in the second half of the year and now accounts for 18.2% of total revenue, as BAT continues investing in products such as Vuse, glo and Velo to support long-term transformation.

    BAT expects 2026 performance to fall at the lower end of its mid-term growth targets, projecting 3–5% revenue growth and 5–8% adjusted EPS growth amid continued investment and foreign exchange headwinds, while maintaining dividend increases and launching a £1.3 billion share buyback.

    “Our U.S. business has delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from our commercial actions and enhanced execution,” company CEO Tadeu Marroco said. “Our New Categories revenue is accelerating, returning to double-digit growth in H2, driven by strong Velo growth in all regions. We continue to prioritize accelerating growth in category contribution through investment in our most profitable markets.”

  • JT Reports Record Year with Revenue Up 13%

    JT Reports Record Year with Revenue Up 13%

    Japan Tobacco Inc. (JT) reported record fiscal 2025 results, with revenue rising 13.4% to JPY 3.47 trillion ($22.6 billion) and adjusted operating profit increasing 21.5% to JPY 902.2 billion ($5.9 billion), driven largely by tobacco business growth and the acquisition of Vector Group. Profit climbed 188.9% to JPY 499.1 billion ($3.2 billion), while free cash flow rose to JPY 272.7 billion ($1.8 billion), and the company plans to pay an annual dividend of JPY 234 ($1.52) per share.

    For fiscal 2026, JT forecasts continued growth, projecting revenue to increase 6.6% and adjusted operating profit to rise 7.9%, as it accelerates investment in heated tobacco products to complement its combustible cigarette portfolio and support long-term earnings expansion.

    “These achievements are the outcome of the strategic investments we have actively pursued over the years,” said JT Group president and CEO Takehiko Tsutsui. “In our Business Plan 2026, we intend to accelerate investments in heated products with the aim of establishing them as the second pillar of profit growth, alongside combustibles, in future years. Furthermore, we are targeting high single digit growth at a [compound annual growth rate] in consolidated adjusted operating profit at constant FX, driven by the tobacco business.”

  • Foreign Expansion Driving KT&G’s Success

    Foreign Expansion Driving KT&G’s Success

    In an interview with The Korea Times, KT&G credited expanding overseas operations with its recent financial success, with foreign sales passing domestic for the first time in the company’s history. The South Korean company has seen rapid international growth, with foreign subsidiary revenue rising 245% since 2020 and overseas cigarette volumes more than doubling. KT&G reported record annual sales of 6.5 trillion won ($4.5 billion) and operating profit of 1.35 trillion won in 2025.

    Supported by 16 marketing and manufacturing hubs and five global production plants, KT&G said it plans to continue strengthening its global footprint and product portfolio, as investor interest grows and the company’s market value climbs.

    “Our overseas bases were not established for short-term sales gains,” a KT&G official said. “They were built to create a sustainable global business structure for the long term, taking into account specific consumer demands across different regions.”

  • Singapore’s Tobacco Taxes Increase 20% Today

    Singapore’s Tobacco Taxes Increase 20% Today

    Beginning today (Feb. 12), Singapore is increasing tobacco excise duties by 20% across all tobacco products as part of Budget 2026 measures aimed at reducing smoking rates. Duties on cigarettes, cigars, and similar products will rise from S49.1 cents to S58.9 cents ($0.39 to $0.47) per stick, while taxes on smokeless tobacco and beedies will increase from S$378 per kg to S$454 per kg ($$299 to $359). Duties on unmanufactured and cut tobacco, as well as other tobacco refuse products, will rise from S$446 per kg to S$535 per kg ($352 to $423).

    The move builds on earlier a 10% tax hike in 2018 and a 15% hike in 2023, and complements broader tobacco-control policies, including standardized packaging and expanded smoke-free public spaces. Singapore’s daily smoking rate has steadily declined, reaching a record low of 8.4% in 2024, according to government health survey data.

  • Cigarette Smuggling Dominating Hong Kong Customs

    Cigarette Smuggling Dominating Hong Kong Customs

    Cigarette trafficking made up roughly three-quarters of all smuggling investigations handled by Hong Kong’s Customs and Excise Department in 2025, as overall smuggling cases climbed 24% year over year to more than 38,000, the department reported. Authorities recorded over 29,000 cigarette-related cases, up 36%, leading to more than 28,000 arrests, while total seizures remained steady at about 600 million sticks.

    Officials said organized networks increasingly used cross-border travelers — including attempts to conceal cigarettes in clothing, wheelchairs, and strollers — with a 41% rise in passengers exceeding the city’s duty-free limit of 19 cigarettes. Meanwhile, illicit drug cases declined 29% to 961, although total drug seizures increased 19% to 7.5 tons, and the estimated value of all seized smuggled goods reached HK$4.2 billion ($546 million).

  • Manufacturers Tell FDA They Need Benchmarks, Communication

    Manufacturers Tell FDA They Need Benchmarks, Communication

    During yesterday’s (Feb. 10) afternoon session of the U.S. Food and Drug Administration’s “Roundtable on Premarket Tobacco Application Submissions for Electronic Nicotine Delivery Systems Products,” Dr. Lynn Hull, acting senior science advisor in the Office of Science at FDA’s Center for Tobacco Products (CTP), moderated the Pharmacological Panel along with the FDA’s supervisory pharmacologist in CTP’s Division of Individual Health Science, Dr. Carolina Ramôa.

    Manufacturers warned that conducting studies has been prohibitively expensive and unpredictable without clear performance benchmarks. They also urged the FDA to allow greater use of modeling and data-bridging approaches, though regulators signaled that such alternatives would face strict validation requirements and may not replace product-specific clinical testing.

    “How can we simplify and have more communication and lean more toward product characteristics to model and understand abuse liability?” Dr. Willie McKinney, founder and CEO of Mckinney Regulatory Sciences asked. “How do we have more meetings regardless of where our application is in the process to understand what you are currently thinking?”

    The agency maintained that measuring nicotine delivery and addiction potential is essential when determining whether products meet public health standards, highlighting clinical pharmacokinetic (PK) data as the most reliable evidence.

    “I absolutely understand where you’re coming from,” said Dr. Ramôa, “where you want to make it as efficient as possible, but understand where I’m coming from, where I have a duty to the American public to make sure I make the correct decision that does not impact them negatively.”

  • DoF Says Illicits Threaten Philippines Fiscal Stability

    DoF Says Illicits Threaten Philippines Fiscal Stability

    Philippine finance officials are raising alarms over the growing impact of illicit cigarette trade, warning that smuggling is driving down tobacco excise tax revenues and threatening funding for public health programs. The Department of Finance (DoF) said tobacco tax collections fell 24% from P174.6 billion ($3 billion) in 2021 to P132.3 billion ($2.2 billion) in 2024, despite rising smoking rates, with Finance officials describing illegal tobacco as a direct threat to fiscal stability and healthcare financing.

    Officials estimate the government may have lost up to P172 billion ($2.9 billion) in tobacco excise revenue between 2020 and 2025 due to smuggling, with illegal cigarettes accounting for roughly 20% of the market. Lawmakers and industry representatives said the price gap between legal packs, which sell for P125 to P200 ($2.13 to $3.40), and illicit packs priced as low as P30 ($0.51) is fueling demand, while also pointing to regulatory loopholes and misdeclaration of products as factors worsening the problem. Authorities are now considering measures including harmonizing vape tax rates, introducing minimum retail pricing, and strengthening coordination between regulatory agencies to curb illegal sales.

  • India ‘Illogical’ in Keeping Alternative Ban

    India ‘Illogical’ in Keeping Alternative Ban

    India has ruled out easing its 2019 ban on e-cigarettes, confirming that the prohibition will continue to include heat-not-burn tobacco products. The Health Ministry said the government is not considering amendments to the law and remains committed to evidence-based tobacco control measures, reinforcing restrictions in one of the world’s largest cigarette markets, where more than 100 billion cigarettes are sold annually and tobacco use is blamed for over 1 million deaths each year.

    The decision is a setback for Philip Morris International (PMI), which had lobbied Indian officials for years to allow its IQOS heated tobacco device, a move analysts viewed as a significant IQOS driver of future expansion. By maintaining the ban, according to Reuters, India effectively blocks PMI from introducing its flagship smoke-free product into a high-volume market that the company had hoped would support its long-term transition strategy.

    In an interview with Reuters, Jacek Olczak, the firm’s chief executive, said he had engaged with various people in India, adding that it was “illogical” for the market to be closed to smoking alternatives such as heated tobacco and vapes, but not cigarettes.