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  • Brother of Israel’s Security Chief Accused of Smuggling Cigarettes

    Brother of Israel’s Security Chief Accused of Smuggling Cigarettes

    Last week’s indictment against Bezalel Zini, brother of Shin Bet chief David Zini—the head of Israel’s security agency—has cast a spotlight on a sprawling tobacco smuggling network supplying the Gaza Strip, a trade that authorities say has expanded sharply during the past two years of war. Yigal Wynne, CEO of the Federation for Intellectual Property, said attempts to smuggle cigarettes into Israel and onward to Gaza have surged, driven by a sharp increase in truck traffic entering the enclave. Dozens of trucks carrying cigarettes, loose tobacco, hookah tobacco, and e-cigarettes are estimated to reach Gaza each month, often routed through the West Bank or the Palestinian Authority, where goods are stored and organized before being smuggled onward.

    Wynne said the economics of the trade make it highly attractive to criminal and terrorist groups, noting that a single 40-foot container of cigarettes that costs smugglers $100,000 can be worth up to $10 million once sold in Gaza. Cigarettes sourced from Egypt or manufactured in the West Bank—particularly brands such as Capital and Imperial—are sold at price markups of as much as 80%, generating large cash revenues with relatively low legal risk compared with drugs or weapons. While current attention is focused on Gaza, Wynne warned that Israel’s domestic tobacco black market remains substantial, accounting for an estimated 20% of cigarette sales, underscoring broader challenges around illicit trade and enforcement.

  • Universal Posts Nine-Month, Q3 Results

    Universal Posts Nine-Month, Q3 Results

    Universal Corporation reported “solid results” for the nine months and third quarter ended December 31, 2025, supported by continued strength in its tobacco operations despite softer overall volumes and headwinds in its ingredients business. Nine-month revenue declined 2% to $2.2 billion, and operating income fell 3% to $183 million, reflecting lower tobacco sales volumes and higher fixed costs, although customer demand for most tobacco styles remained firm and third-party processing volumes increased. Third-quarter revenue dropped 8% to $861 million, with operating income down 21% to $82 million, driven by reduced tobacco shipments and inventory write-downs, while the ingredients segment faced tariff pressures, weaker consumer-packaged-goods demand, and higher depreciation costs. The company also strengthened liquidity through a refinancing and expansion of its revolving credit facility and highlighted sustainability progress, including a significant increase in renewable electricity use and continued farmer engagement across its global supply chain.

  • Bangladesh Bans Tobacco Farming by River to Protect Fish

    Bangladesh Bans Tobacco Farming by River to Protect Fish

    Bangladesh’s interim government halted tobacco cultivation in the Halda River basin in Manikchhari upazila, Khagrachhari district, in a move aimed at protecting the river’s biodiversity and fisheries resources. The Ministry of Fisheries and Livestock said coordinated efforts by local authorities and the Department of Fisheries ensured no tobacco was planted this year, following a notification last year banning cultivation in the basin due to concerns over pesticide use and water pollution. Authorities are now promoting alternative crops such as mustard, maize, and vegetables to support farmers while safeguarding the Halda River, which is Bangladesh’s only natural carp breeding ground and a designated fisheries heritage site.

  • Survey Breaks Down Fiji’s Smoking Habits

    Survey Breaks Down Fiji’s Smoking Habits

    A survey in Fiji found that 36.3% of adults currently use tobacco, with significantly higher smoking rates among men (50.8%) than women (20.6%). Manufactured cigarettes remain the dominant tobacco product among smokers, with 80.6% of daily smokers using them, according to the Fiji STEPS Survey 2025. The survey was conducted between May 2024 and June 2025 among adults aged 18 to 69.

    Daily smoking was reported by 19.5% of adults, while smokeless tobacco use stood at 9.5%, primarily among men. The study also highlighted emerging nicotine trends, with 4.5% of adults reporting e-cigarette use, indicating growing diversification in nicotine consumption despite the continued dominance of manufactured cigarettes.

  • Kyrgyzstan Tightening Hookah Laws

    Kyrgyzstan Tightening Hookah Laws

    Kyrgyzstan opened public consultation on draft legislation that would tighten the regulation of hookah use by banning water pipes, shisha, and nargile in all public places. Under the proposal, hookah consumption would only be allowed in specially designated, licensed venues equipped with ventilation systems and restricted to adults aged 18 and over. The draft also amends the country’s licensing and permitting law, formally requiring businesses offering hookah services to obtain a dedicated operating license, marking a significant step toward stricter oversight of the sector.

  • Dutch Looking to Raise Nicotine Age to 21

    Dutch Looking to Raise Nicotine Age to 21

    The Netherlands plans to raise the minimum legal age for purchasing nicotine products, including cigarettes and vapes, from 18 to 21 under a new coalition agreement between D66, VVD and CDA parties, reflecting growing concern over youth nicotine use, Euractiv reported. The proposal follows a 2025 government study showing 10% of Dutch 12-year-olds have tried vaping and nearly 40% of users aged 12–16 report addiction. The move aligns with a broader European trend, with Latvia already raising the age to 20, Ireland planning to increase the minimum to 21 by 2028 through its “smoke-free generation” strategy, and Finland considering similar changes as part of its 2030 nicotine-free target. Industry groups have criticized the Dutch proposal, arguing it restricts legal adults’ choices and could increase illicit trade and cross-border purchases, while public health advocates support the measure as part of efforts to reduce youth nicotine uptake.

  • Mombasa Traders Fighting Proposed Tobacco Law

    Mombasa Traders Fighting Proposed Tobacco Law

    Retail and hospitality traders in Mombasa are pushing back against Kenya’s Tobacco Control (Amendment) Bill, 2024, warning the proposed reforms could accelerate illicit trade and undermine legitimate businesses. Speaking at a press briefing, business owners cited Kenya Revenue Authority estimates suggesting more than 50% of excisable goods in the market are already illicit or non-compliant, including cigarettes and other regulated products. Traders argue the bill, sponsored by Senator Catherine Mumma, risks worsening the situation by introducing additional restrictions such as a proposed ban on flavored nicotine products, including vapes and nicotine pouches.

    Industry representatives said while protecting minors is important, further product restrictions could drive consumers toward unregulated markets, eroding tax revenue and threatening licensed operators. Coast Bar Owners Association Chairman Patrick Kabundu warned that removing legal product options could create supply gaps quickly filled by black market suppliers, while traders urged lawmakers to focus on enforcing existing laws, including Kenya’s ban on tobacco sales to individuals under 18, rather than introducing new regulatory measures they say could harm businesses and government revenue.

  • BAT Closure Leading S. Africa to ‘Warehouse Economy’

    BAT Closure Leading S. Africa to ‘Warehouse Economy’

    The South African Federation of Trade Unions (SAFTU) warned that South Africa is sliding toward a “warehouse economy” following British American Tobacco’s decision to shut its Heidelberg manufacturing plant and shift to imports. SAFTU General Secretary Zwelinzima Vavi said the closure would cost around 200 direct jobs and thousands more indirectly, arguing it reflects a broader pattern of deindustrialization as multinational companies scale back local production.

    SAFTU urged Parliament to halt the Tobacco Control Bill in its current form, warning it could further weaken legal tobacco manufacturers while strengthening illicit trade, which Vavi said already accounts for roughly 75% of cigarette sales. BAT cited rampant illegal cigarettes as a key factor behind the closure, noting that illicit trade has weighed on its South African operations and financial performance. SAFTU is calling for a full socioeconomic impact assessment of the bill, while BAT has pushed for stronger enforcement and a minimum retail price to curb illegal sales.

  • PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    Philip Morris International reported strong 2025 fourth-quarter and full-year results, driven largely by the continued expansion of its smoke-free product portfolio. The company recorded more than $40 billion in annual net revenues, including nearly $17 billion from smoke-free products, which accounted for 41.5% of total net revenues. Smoke-free shipment volumes rose 12.8% for the year, with PMI’s products now available in 106 markets and used by an estimated 43 million adult consumers. IQOS maintained a dominant position in heat-not-burn, holding about 76% global category share, while nicotine pouch brand Zyn continued rapid growth, particularly in the U.S., where shipment volumes reached 794 million cans for the year.

    PMI’s combustible business remained stable despite expected volume declines, supported by pricing strength and productivity improvements. Marlboro reached a record 11% global category share, while total company shipment volumes remained flat as growth in smoke-free products offset cigarette declines. The company also reported strong performance across multiple regions, including double-digit heated tobacco growth in Europe and sustained category leadership in Japan, where heat-not-burn products now exceed 50% of total nicotine offtake in several major markets.

    Looking ahead, PMI expects continued momentum, forecasting 2026 adjusted diluted EPS growth of 7.5% to 9.5% excluding currency effects. The company also introduced 2026–2028 targets calling for 6% to 8% organic net revenue growth and 9% to 11% adjusted EPS growth, driven primarily by high single-digit to low-teens expansion in smoke-free product volumes.

    In response to the financials, Morgan Stanley said it expects a modest negative market reaction to PMI’s fourth-quarter results and forward guidance, which were largely in line with expectations following the stock’s strong rally since December.

    “On balance, 4Q results were broadly in line, and guidance looks reasonable, but is unlikely to settle the debate around the stock,” Morgan Stanley wrote. “Bears continue to point to a 2H-weighted year with headwinds from IQOS competition and excise tax increases in Japan, the flavor ban in Poland, and continued competition in U.S. nicotine pouches. Bulls point to PM delivering the best mid-term growth in large-cap CPG despite these known headwinds. We are [rating the stock] Overweight, and continue to expect growth to reaccelerate in 2H as these headwinds dissipate, and for US Zyn trends to improve with the likely FDA authorization of Zyn Ultra.”

  • Plans to Toughen Vape Trade Licensing in Belarus

    Plans to Toughen Vape Trade Licensing in Belarus

    Belarus is preparing draft legislation to tighten licensing requirements for electronic cigarette and e-liquid trade, with the proposal expected to reach parliament in the first half of 2026. Officials considered both a full ban and stricter regulation, ultimately opting to maintain retail availability while limiting which entities can manufacture, import, and conduct wholesale distribution. President Aleksandr Lukashenko cited rising youth vaping rates as a key concern but warned that an outright ban could fuel illicit cross-border trade, particularly with Russia. Authorities said the new framework would introduce tougher retail licensing standards and stronger enforcement, following inspections that found roughly 70% of retail outlets selling non-compliant products. The proposal, developed by state food industry group Belgospishcheprom, would apply to both vaping devices and nicotine liquids as part of broader public health oversight.