Tag: Featured

Stories featured at the top of tobaccoreporter.com

Broughton Publishes Summary of Final Rule
Illustration: Broughton Nicotine Services
Broughton Nicotine Services has published a summary of the U.S. Food and Drug Administration’s rule for the premarket review of new tobacco products.
Released on Jan. 19, the FDA’s final rule makes amendments and recommendations to the previous rule and helps ensure that PMTAs contain sufficient information for the agency to determine whether a marketing granted order should be issued for a new tobacco product.
The purpose of the rule is to improve the efficiency of the submission and review of PMTAs as well as providing applicants with a better understanding of the information a PMTA must contain.
Amongst other topics, the rule addresses:
The submitting of detailed information regarding the physical aspects of the new tobacco product and full reports of information regarding investigations that may show the health risks of the new tobacco product.
Whether the product presents the same or different risks compared to other tobacco products. The FDA requires the submission of these health risk investigations to ensure it understands the full scope of what is known about the potential health risks of a new tobacco product.
Electronic submission of the PMTA.
Post-market reporting requirements for applicants that receive marketing granted orders.
Retention of records requirements for PMTAs
Procedures by which the FDA reviews a PMTA
Broughton Nicotine Services summarized the 516-page recommendations and requirements report into a digestible guide, which is available for download here.
February 4, 2021
‘JT’s Strategy Not Paying Off’

Photo: Taco Tuinstra
Diversifications and acquisitions have not paid off for Japan Tobacco (JT), according to Seeking Alpha, a crowd-sourced contents service for financial markets. Despite relatively stable sales trends and operating margins, JT shareholder value has declined in recent years.
Confronted by sales declines in its domestic market, JT in recent years shifted its focus to nontobacco markets, investing in pharmaceuticals, bakeries and processed foods, among other sectors. JT also acquired other tobacco brands and businesses, including Natural American Spirit; PT Karyadibya Mahardhika; United Dhaka and Donskoy Tabak, for large sums.
According to Seeking Alpha, these acquisitions have not yielded the desired results.
“Since 2017 when ESG [environmental, social and corporate governance] started to gain momentum, JT’s performance has not been good enough to support the share price despite relatively stable free cash flow generation,” Seeking Alpha wrote. “We conclude that the risk profile of the business continues to rise, and the company has not allocated its capital successfully in order to mitigate these risks. With a lack of progress and no easy answers, we rate these shares a sell.”
February 4, 2021
Scorecard: Tobacco Taxed Ineffectively

Illustration: Tobacco Reporter archive
Many countries are failing to effectively tax cigarettes, the most recent Tobacconomics Cigarette Tax Scorecard reveals.
According to Tobacconomics, raising taxes and prices is the most effective way to reduce the negative health and economic impact of tobacco use. The organization recommends a uniform specific excise tax that comprises at least 70 percent of the retail price and is automatically updated to stay ahead of inflation and income growth.
The Tobacconomics Cigarette Tax Scorecard evaluates cigarette tax policy performance in more than 170 countries on a five-point scale using data from the World Health Organization’s biennial Report on the Global Tobacco Epidemic.
The top-performing countries in this assessment are Australia and New Zealand, scoring the highest at 4.63, which reflects their high, uniform specific cigarette excise taxes with regular increases that have significantly reduced the affordability of cigarettes. The highest-performing region is Europe, with an average score of 2.79. According to Tobacconomics, higher-income countries generally have higher taxes and prices and more effective tax structures than lower-income countries.
The countries with the greatest improvement in cigarette tax policy are Bahrain (an overall three-point improvement), Saudi Arabia (+2.75), the United Arab Emirates (+2.75), Kyrgyzstan (+2.50), and the Philippines (+2.50). The improvements in Bahrain, Saudi Arabia, and the United Arab Emirates reflect the introduction of significant cigarette excise taxes, while those in Kyrgyzstan and the Philippines result from the simplification of previously complicated tiered cigarette excise tax structures accompanied by large tax increases.
Nearly half of countries surveyed scored less than two out of the maximum five points, and there has been little improvement over the past six years. The global average score rose only slightly, from 1.85 in 2014 to 2.07 in 2018. Although overall scores improved in 89 countries, they, became worse in 43 countries.
February 3, 2021
Worris About New EU Vapor Restrictions
Photo: Tobacco Reporter archive
Vapor advocates have expressed concern about reports that the European Commission is potentially seeking to ban flavored e-liquids.
According to the U.K. Vape Industry Association (UKVIA), leaked EU plans for a “Tobacco Free Generation” would increase controls on e-cigarettes, despite their proven value in smoking cessation efforts.
This latest EU plan could include the following proposals:
Extend taxation to “novel tobacco products,” including e-cigarettes
Extend the coverage of smoking bans, both indoor and outdoor, to vaping
A full ban on flavored products
The enforcement on plain packaging for vaping products
John Dunne
“We at the UKVIA are seriously concerned by reports that the European Commission is considering such regressive action, which will likely reduce the positive impact that vaping has on people’s lives,” said John Dunne, director general of the UKVIA.
“While we completely support efforts to combat the scourge of cancer in our society, the creation of artificial barriers to harm-reduction products is clearly counterproductive. Adult smokers must be empowered to make positive change, rather than being discouraged.
“Cancer Research UK, along with the Royal College of GPs, have confirmed vaping’s significant harm-reduction compared to cigarettes, as well as its efficacy in smoking cessation. The EU’s plans are out of step with this latest evidence.
“It is vital that the U.K. now take advantage of the legislative and regulatory independence afforded by Brexit, to safeguard this country’s proportionate, evidence-based approach to vaping.”
The document was leaked ahead of the announcement today of the EU’s “Beating Cancer Plan,” which among other things calls for reducing tobacco use to less than 5 percent of the EU population by 2040.
February 3, 2021
Eternis Buys Tennants Fine Chemicals

Photo: Eternis Fine Chemicals
Eternis Fine Chemicals, a leading Indian producer of aroma chemicals, has acquired Tennants Fine Chemicals in the United Kingdom and its wholly owned subsidiaries in Singapore and China from Tennants Consolidated.
Tennants Fine Chemicals is one of the world’s leading producers of triacetin, is a plasticizer used in the manufacture of cigarette filters.
As a result of this transaction, Eternis and Tennants Fine Chemicals will expand and complement the range of aroma chemicals offered to customers, while leveraging the multi-location manufacturing and distribution platforms to better service their customers regionally and de-risk their supply chain.
“As we step into 2021, I speak on behalf of the team at Eternis in expressing my excitement with this significant step of successfully completing our first overseas acquisition in our growth journey,” said Rajen Mariwala, managing director of Eternis, in a statement.
“The addition of this large independent, high-end manufacturer enhances our business and brings with it many strategic advantages. We will now have established operations in Europe and Asia, with the ability to service our customers from stock hubs and partners. The combined product offer will position us well for further growth.”
“I see positive outcomes as we enter into this new partnership,” said Billy Gittins, managing director of Tennants Fine Chemicals. “Our combined manufacturing footprint across two key regions will offer better security of supply. Our regional service strategy in China and SE Asia has proved beneficial and will be further strengthened with the addition of Eternis’ products. I am excited about our future together.”
February 3, 2021
KT&G Recognized for Auditing Practices

Hyung-cheol Cha, head of the KT&G audit planning office (right), and Tae-ryong Moon, president of the Korea Audit Association, at the awards ceremony. (Photo: KT&G)
KT&G was awarded the Best Organization Award in the Private Enterprise Sector for Internal Audit at the 2020 Audit Awards hosted by the Institute of Internal Auditors Korea.

The awards ceremony was held to encourage organizations that have contributed to social development through excellent internal audit and compliance monitoring during 2020. KT&G was highly evaluated for its reinforcement of transparency in management through internal audit consistent with global standards.

“KT&G proactively prevents corporate risks through an independent internal audit organization directly under the audit committee, and in the future, we will increase corporate value by operating a leading audit system in line with global standards,” said Hagyeong Do, director of the KT&G audit group, in a statement.
February 3, 2021
EU: Travelers Should Pay Duties at Home Rate

Photo: Ifeelstock – Dreamstime.com
The EU has suggested that consumers buying tobacco and alcohol across borders should pay the duties of their home states rather than the rate of the country in which the products are purchased, reports The Independent.
The EU is also considering mandatory or lower limits on the amount of alcohol and tobacco products that can be brought back from other EU countries for personal use. The proposed changes are meant to help governments recoup lost excise duties and protect public health.
“For both alcohol and tobacco products, the misuse of cross-border shopping rules for private individuals is a source of concern for several EU countries due to lost revenues and the negative impact on the effectiveness of national public health policies,” the European Commission said in the public consultation
The proposed rule would have the greatest impact on Ireland, which is one of the most expensive places in the EU to buy tobacco and alcohol. Northern Ireland too would be included in any future policy change as, under the 2019 Brexit deal, it mirrors EU rules on VAT and excise duties.
The EU public consultation on the issue will remain open until April 23, 2021
February 3, 2021
Keller and Heckman to Hold Vapor Symposium
Keller and Heckman will hold its fifth annual E-Vapor and Tobacco Law Symposium virtually Feb. 9–11, 2021.

The three-day seminar will address legal, scientific and public health issues relevant to the e-vapor and tobacco industries in a post-PMTA world.

The virtual platform will closely replicate the interaction and dynamics of the in-person event, including opportunities to chat with the speakers one-on-one, network with colleagues and participate in discussion forums.

Registration is currently open.
February 3, 2021
Study Backs Tobacco Farming In Malawi
The Lilongwe tobacco auction during Tobacco Reporter’s visit in 2017
Despite the many challenges facing the industry, tobacco has a future in Malawi, reports The Nation, citing a study by the Comesa Business Council.
That is because tobacco contributes significantly to the attainment of at least eight Sustainable Development Goals (SDGs), including zero hunger, quality education, gender equality, decent work, economic growth responsible consumption and production and life on land.
Titled Tobacco Sustainability in Africa, the study found that tobacco production helps farmers get out of poverty, become more food secure send their children to school. It also ensures that both men and women participate in production and guarantees environmental conservation, among others benefits.
Tobacco production supports more than 1.7 Malawians, according to the authors. “The global drive against consumption of tobacco products has a significant impact on the sustainability of the tobacco industry,” the wrote. “This will ultimately affect the tobacco, farmers in tobacco growing countries.”
In a November 2020 statement, the Tobacco Commission, which regulates the tobacco industry, said the future of tobacco remains intact despite the challenges facing the industry.
“The country is yet to identify a competitive crop or another best alternative to tobacco,” the statement read. “Until we reach that stage where we shall have an alternative crop that will be raking in much foreign exchange as tobacco, we will still be relying on tobacco.”
Tobacco remains Malawi’s major foreign currency earner and contributes about 15 percent to the country’s gross domestic product.
The country earned $173.5 million from tobacco exports in 2020, down from $237 million in the previous season.
February 2, 2021
Worries About WHO’s Harm Reduction Stance

Photo: Olgacanals | Dreamstime
In a submission to the U.K. All Party Parliamentary Group for Vaping Inquiry, the International Network of Nicotine Consumer Organizations (INNCO) has expressed its concerns about the World Health Organization’s stance on tobacco harm reduction.
Specifically, INNCO is concerned about the WHO’s treatment of low-risk nicotine products and its refusal to recognize harm reduction principles to lower the disease and premature death caused by use of high-risk forms of tobacco such as combustible cigarettes and certain oral tobacco products.
The U.K. Parliamentary Group’s inquiry is designed to collect evidence and issue a report on the ninth conference of the parties to the WHO Framework Convention on Tobacco Control (COP9), which is scheduled to take place in November in the Netherlands.
The U.K. has taken a pragmatic, humane and effective position on the use of tobacco harm reduction, embracing electronic cigarettes as a complement to traditional tobacco control strategies. Consequently, England has one of the lowest smoking rates in Europe.
Due to the country’s track record in tobacco harm reduction, INNCO believes the U.K. is in a unique position to raise its concerns with the WHO and FCTC.
February 2, 2021