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Tag: combustibles

  • South Africa Advances Tobacco Bill, Negotiations Loom

    South Africa Advances Tobacco Bill, Negotiations Loom

    South Africa’s Portfolio Committee on Health approved the Tobacco Products and Electronic Delivery Systems Control Bill to proceed to the next stage, though MPs across parties stressed the need for significant amendments. The committee voted 10–1 in favor of continuing the legislative process, but lawmakers said the final law must better differentiate between combustible cigarettes and lower-risk nicotine products such as vapes.

    Chairperson Faith Muthambi said public submissions and scientific evidence supported a risk-based regulatory approach rather than treating all products equally. MPs also raised concerns over illicit trade, enforcement, plain packaging, advertising restrictions, and penalties. The bill would introduce indoor smoking bans, plain packaging, advertising prohibitions, and tighter controls on vaping products, but is expected to be heavily revised during clause-by-clause negotiations.

  • Bloomberg: JTI Bets on Discount Cigarettes Amid Global Shift to Smoke-Free Products

    Bloomberg: JTI Bets on Discount Cigarettes Amid Global Shift to Smoke-Free Products

    Today (September 25), Bloomberg published an article titled “Japan Tobacco is Doubling Down on Cheap Cigarettes,” examining Japan Tobacco International’s (JTI) revenue strategy since its $2.4 billion acquisition of Vector Group in October 2024.

    “While rivals Philip Morris International Inc. and British American Tobacco Plc have set ambitious targets for ‘smoke-free’ products such as e-cigarettes, heated tobacco sticks and nicotine pouches, JTI has focused more on conventional combustible tobacco products,” the article said. The strategy is paying off, according to the article, as JTI’s cigarette volumes rose 2%, revenue 9%, and profit 10%. While smoke-free products like Ploom and Nordic Spirit are expanding, JTI remains focused on conventional cigarettes in both mature and emerging markets.

    “In the U.S., the Vector acquisition has given JTI an advantageous position, as smokers contend with inflation and higher taxes, and tobacco makers increase prices to help compensate for a decline in cigarette volumes,” the article said. “Since 2021, premium brands have steadily lost share, falling from about 80% of tracked cigarette sales to about 70%, according to Connor Rattigan, analyst at Consumer Edge.”