Tag: Featured

Stories featured at the top of tobaccoreporter.com

  • Vapor Group Welcomes U.K. Consultation

    Vapor Group Welcomes U.K. Consultation

    Photo: Gerd Altmann from Pixabay

    The U.K. Vaping Industry Association (UKVIA) says it welcomes today’s announcement that the government is consulting on changes to the Tobacco and Related Products Regulations (TRPR).

    As the U.K. prepares to leave the European Union and take control of its regulatory landscape and ahead of recently announced development of a new tobacco control plan, there is an enormous opportunity to seize the public health potential of vaping, according to the UKVIA. “Our members have been working tirelessly to agree what a new settlement for vaping should look like, to bolster harm-reduction opportunities and support the government’s ambition for a Smoke Free 2030,” the organization wrote in a press release. “This will form the basis of our Blueprint for Better Regulation in the vaping industry, a document which we will be publishing shortly.”

    Whilst smoking prevalence has declined across the U.K. between 2018-2019 by 0.6 percent, according to the Office for National Statistics, there are still 6.9 million smokers, representing some 14.1 percent of the adult population. Moreover, despite vaping being acknowledged as one of the best ways to quit smoking, and according to research has higher quit success rates than nicotine replacement therapies, there are still nearly a third (32.4 percent) of adult smokers in Great Britain that have never tried vaping. Therefore, positive regulatory change has the potential to unlock the public health prize presented by vaping, according to the UKVIA.

    John Dunne

    “We have been eagerly awaiting the news of the consultation for some time,” said John Dunne, director general of the UKVIA. “As an industry, the vaping community has done much to provide vital information and alternatives to smokers for many years, but there is only so much we can do in the confines of current EU regulations. With the support of all stakeholders, including government and regulators, the potential improvements to public health can increase tremendously.

    “The British public is keen to see how new ways of doing things can improve their lives post-Brexit. The government’s handling of vaping will be a key, early test-case. The UKVIA’s Blueprint for Better Regulation document will show just what is possible when progressive, evidence-based approaches are taken.

  • The Ethics of Meddling in Other People’s Lives

    The Ethics of Meddling in Other People’s Lives

    The World Science Forum will be held in Cape Town in December 2021 under the theme of “science for social justice.”

    As a precedent, a new documentary examines the ethics of intervening in the lives of others under the lens of South Africa’s go-it-alone ban on tobacco and alcohol sales to tackle Covid-19. Leading medical, policy and civil society experts weigh up the scientific evidence for and against. Taxation, jobs, sectoral interests, religious indoctrination, values and civil liberties all come into play.

    Further issues debated include concepts of recent history and subjugation versus today’s democracy and the rule of law. Have fundamental principles of autonomy, human dignity, freedom and equality been forced to give way?

    Is the medical profession’s “unconscionable collusion” acceptable? How must lawmakers navigate between the rights and responsibilities of individuals to look after themselves and the rights and responsibilities of states to look after their citizens?

    Above all, as this pandemic collides with the known syndemics of tuberculosis, malaria, HIV/Aids, hepatitis etc., the panel argues for the urgent acceptance and application of harm reduction science worldwide.

  • Vietnam Urged to Set its Own THR Rules

    Vietnam Urged to Set its Own THR Rules

    Photo: Quang Nguyen vinh from Pixabay

    The International Network of Nicotine Consumers Organizations (INNCO) is urging the Vietnamese government to exercise “true independence” in its regulation of tobacco harm reduction (THR) products, warning that failure to adopt evidence-based guidelines will lead to substandard products and economic development losses.

    Samrat Chowdhery

    “We understand that the government wants to improve regulatory compliance to reduce harm from smoking, but it also needs to understand its stakeholders in order to formulate an effective regulatory design,” said Samrat Chowdhery, president of INNCO’s governing board in a letter to Vietnam’s Ministry of Health. “We believe it is problematic if the entity drafting regulations does not have a solid, evidence-based understanding of the THR issue.”

    INNCO’s concerns stem from the possibility that regulations will be drafted by the Vietnam Tobacco Control Fund, a long-time grantee of The International Union Against Tuberculosis and Lung Disease (The Union), a Bloomberg Philanthropies-funded organization that has repeatedly called for worldwide bans on all electronic nicotine delivery systems and other THR products in low- and middle-income countries.

    “The issue with having a regulation drafted by this entity [The Union] is that it will always be biased,” said Chowdhery in a statement, pointing to similar co-opting of tobacco policies in other Asian nations.

    “In the Philippines, legislators have questioned the conflict of interest in their Food and Drug Administration after confirming that it receives funds from Bloomberg Philanthropies and The Union, while pushing for an anti-vaping policy. In India, the new tobacco law has been drafted by a Bloomberg-funded group, the Campaign for Tobacco-Free Kids,” he said.

    “INNCO speaks for the consumers from Vietnam who are silent on this issue for fear that their civil liberties will be compromised,” said Chowdhery. “It is vital that the government exercise true independence and allow consumers to be part of the regulatory framework.”

  • Packaging Market to Exceed $20 billion

    Packaging Market to Exceed $20 billion

    Photo: Tobacco Reporter archive

    The global market for tobacco packaging is likely to reach $20.45 billion by 2027, representing a compound annual growth rate of 3 percent, according to a new report published by Fortune Business Insights. In 2019, the market was valued at $16.15 billion.

    The global tobacco packaging market size witnessed progressive growth in the past few years with the advent of smokeless tobacco products worldwide. These products, including gutka, chewing tobacco, snus, snuff and gum act as substitutes for cigarettes.

    In terms of materials, the market is dominated by the paperboard segment as it is widely used for making cigars, cigarettes and other products. Paperboards are thick and based out of paper with properties such as printability, foldability, rigidity, and lightweight nature. The second most used tobacco packaging material is paper, accounting for 17.6 percent of the market.

    In geographic terms, the Asia Pacific region plays a prominent role in the tobacco packaging market, earning a revenue of $9.3 billion in 2019. Dominant markets include Japan, China, and India. Europe ranks second with the UK, Germany, and Russia emerging as leading nations.

    However, this region may face challenges in terms of stringent tobacco regulations in the forecast years, according to the authors. Furthermore, the rising demand for chewing tobacco, cigars, cigarettes and other products from nations such as Egypt, South Africa, and Turkey are likely to help the Middle East and Africa witness substantial growth in the coming years.

     

  • Cigarette Factories Raided in Benelux

    Cigarette Factories Raided in Benelux

    Photo: Europol

    Authorities seized 14 million cigarettes and 186 tons of cut tobacco during raids carried out in Belgium and the Netherlands this month, reports Europol. Seven workers were arrested at the illegal factory in the Netherlands. With a production area of 6,000 square meters, the illegal factory in Belgium is one of the largest dismantled to date.

    This sweep followed an investigation led by Belgian customs with the support of the Polish Police Central Bureau of Investigation, the Dutch Fiscal Information and Investigation and Europol.

    The confiscated cigarettes were likely destined for the U.K., which levies high rates of taxation on tobacco products.

    These seizures follow those of a separate operation in Spain. On Jan. 4, the Spanish National Police and Spanish Tax Agency targeted a tobacco smuggling network operating in Cordoba and Seville. This operation was also carried with the support with the Polish Central Bureau of Investigation, the Polish National Revenue Agency and Europol.

    The Spanish operation resulted in the arrest of 12 individuals, including Spanish, Ukrainian and Belarussian nationals, and the seizure of 910,000 cigarettes, 4.2 tons of filters and 10.3 tons of cut tobacco, along with various pieces of machinery and vehicles. The total value of the seized goods exceeds €1 million.

    Europol’s Analysis Project Smoke within the European Economic and Financial Crime Centre supported both these investigations. This team is dedicated to investigating the unlawful manufacturing and smuggling of excise goods.

    Analysis Project Smoke facilitated the international cooperation between the involved countries by providing a secure platform of communication, running cross-checks against Europol’s databases and providing analytical and operational expertise to tailor the respective investigation strategies.

    Belgium customs seized 409.9 million illicit cigarettes in 2020, up 108 percent from 2019. In  addition, customs seized 49 tons  of hookah tobacco (up from 4.1 tons in 2019) and 73 tons of other tobacco products.

    In total for the year, five illegal cigarette factories were dismantled in Belgium, along with four illegal shisha tobacco factories, one tobacco cutting site, two cigarette packaging sites and six storage sites. In all, 32 people directly connected to illicit tobacco product trade on Belgian soil were arrested.

    This illicit traffic in Belgium is “a problem that concerns the entire European Union,” according to Florence Angelici, spokeswoman of the FPS Finance. 

  • Rush Nicotine Pouch Hits U.S. Market

    Rush Nicotine Pouch Hits U.S. Market

    Photo: Crown Distributing

    Rush non-tobacco oral nicotine pouches are now available in the United States through Crown Distributing, Global Tobacco and America Juice Co.

    Manufactured under license through Alternative Nicotine Technologies, Rush is available in wintergreen, mint, citrus and cinnamon flavors. Consumers can pick between nicotine levels of 3 mg and 7 mg.

    Mike Walters, vice president of sales at Crown Distribution, has high expectations for the new product. “Our initial consumer feedback tells us the Rush tobacco-free white nicotine pouches rate high on soft mouth feel, flavor impact and overall nicotine satisfaction when compared to other brands currently on the market,” he said in a statement.

    Unlike other pouch brands that claim to be tobacco-free, Rush does not rely on tobacco-nicotine extracts or flavors, according to Crown Distribution. “We deliver on our promise that all of our ingredients are certifiable as non-tobacco,” says Walters. “This makes the Rush nicotine pouch the first true ‘tobacco-free’ nationwide brand roll-out in the modern oral nicotine pouch category.”

  • 22nd Century Moves Headquarters

    22nd Century Moves Headquarters

    Photo: Vincent Groeneveld from Pixabay

    22nd Century Group is moving its corporate headquarters to the Larkinville District in Buffalo, New York, USA.

    “We have experienced tremendous positive change in our organization over the past year and this relocation will help us improve on efficiency, collaboration, and our ability to attract and retain top talent,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement. “We have deep roots in Buffalo, and we are very excited to be moving to the up-and-coming Larkinville District, Buffalo’s oldest manufacturing district, to join other organizations that are revitalizing the city’s tech and business community.”

    22nd Century Group’s new Buffalo office space is in a state-of-the-art, restored manufacturing facility located at 500 Seneca Street, joining other multinational technology and professional services companies. The new headquarters will accommodate all the company’s staff from its current office location in nearby Williamsville and has significant room for expansion.

    The company believes that authorization of its MRTP application by the U.S. Food and Drug Administration, along with its expected growth in the hemp/cannabis space and a soon-to-be-announced third franchise, will require an expansion of resources and space. 22nd Century Group will move to its new headquarters in March 2021.

  • Imperial Brands Announces New Strategy

    Imperial Brands Announces New Strategy

    Photo: Casimirokt – Dreamstime.com

    Imperial Brands has announced a new strategy to create long-term value. The company says it will focus on priority combustible markets, drive value from its broader market portfolio and build a targeted next-generation products (NGP) business.

    Imperial Brands will focus its investment and resources around the U.S., Germany, the U.K., Australia and Spain, which represent 72 percent of its combustible operating profit.

    At the same time, the company will selectively build markets where it has attractive leadership positions, such as Africa and other European markets, while selectively exiting a small number of markets where it has a relatively weaker presence.

    Furthermore, Imperial Brands will focus its investment behind heated tobacco opportunities in Europe and in selective market opportunities in vapor, particularly in the U.S. Imperial’s oral nicotine business will remain focused on its existing markets within Europe. The aim is to develop a sustainable NGP business that supports Imperial’s ESG agenda by making a meaningful contribution to harm reduction.

    Stefan Bomhard

    “We have undertaken a comprehensive strategic review, examining all opportunities for unlocking value,” said Stefan Bomhard, CEO of Imperial Brands, in a statement. “This process has reinforced my view that the group has solid foundations on which we can build a better and stronger business. Our new detailed five-year plan sets out clear strategic priorities, which will drive targeted investment behind those markets and brands with the greatest opportunities for value creation. We have put the consumer at the center of everything we do and are beginning to reshape our culture to support the new strategy. This will improve our ways of working and create an agile, collaborative and performance-based business that will deliver a stronger, more consistent performance.”

    To support the delivery of its strategic priorities, Imperial is changing how it operates to embrace new ways of working and to enhance its culture. Three critical enablers to drive these changes have been identified: consumer at the center of the business; performance-based culture and capabilities; and simplified and efficient operations.

    As a result of these changes, Imperial will increase its investment in core capabilities, such as sales and marketing, by £50 million ($68,28 million) to £60 million per year. This additional investment will be funded by efficiency savings as the company reorganizes and simplifies the business, generating annualized savings of £100 million to £150 million by the end of fiscal year 2023. The anticipated cash costs of the initiatives are £245 million to £275 million, with the majority of the spend occurring in fiscal year 2022. In addition, the company expects to incur associated non-cash restructuring charges, currently expected to be around £150 million. Any additional restructuring charges beyond fiscal year 22 will not be treated as an adjusting item.

    Imperial’s outlook for fiscal year 21 remains in line with the statement provided at the preliminary results on Nov. 17, 2020.

    The new plan is expected to deliver a gradually improving trajectory in net revenue over the five years with a compound annual growth rate of 1 percent to 2 percent for fiscal year 2020 to fiscal year 2025.

  • Altria Full-Year Revenues up

    Altria Full-Year Revenues up

    Photo: Altria Group

    Altria Group reported net revenues of $26.15 billion in fiscal 2020, up 4.2 percent from 2019. The company attributes the increase to higher net revenues in the smokable products and oral tobacco products segments, partially offset by lower net revenues in the “all-other” category and the wine segment. Revenues net of excise taxes increased 5.3 percent to $20.84 billion.

    “Altria delivered outstanding results in 2020 and managed through the challenges presented by the Covid-19 pandemic,” said Altria CEO Billy Gifford. “Our tobacco businesses were resilient, and we made steady progress toward our 10-year vision to responsibly transition adult smokers to a noncombustible future.”

    “Our plans for the year ahead include accelerating investments in support of our 10-year vision, which we expect to fund through the continued financial strength of our tobacco businesses. We expect to deliver 2021 full-year adjusted diluted EPS [earnings per share] in a range of $4.49 to $4.62, representing a growth rate of 3 percent to 6 percent from an adjusted diluted EPS base of $4.36 in 2020.”

    In a press note, Altria Group highlighted notable developments in key business segments over the past fiscal year.

    In December, the U.S. Food and Drug Administration authorized the IQOS 3 device for sale in the U.S. The new device has a longer battery life and a faster re-charging time compared to the currently authorized 2.4 version. Altria subsidiary Philip Morris USA expects to begin selling the new device shortly and that it will be made available across all existing retail channels in Atlanta, Charlotte and Richmond.

    In the fourth quarter, Altria’s Helix subsidiary expanded the distribution of On! Nicotine pouches by an additional 22,000 stores. On! is now available in approximately 78,000 stores as of the end of the fourth quarter, an increase of nearly 40 percent from the end of the third quarter and more than five times the store count from the end of 2019.

    Helix reached annualized manufacturing capacity for On! of 50 million cans in the fourth quarter. Helix expects unconstrained On! manufacturing capacity for the U.S. market by mid-year 2021.

    In November, Altria exercised its right to convert its nonvoting shares in Juul to voting shares. The company said it does not currently intend to exercise its additional governance rights obtained upon share conversion, including the right to elect directors to Juul’s board, or to vote its Juul shares other than as a passive investor, pending the outcome of the U.S. Federal Trade Commission litigation.

    Altria said its tobacco businesses have not experienced any material adverse effects associated with governmental actions to restrict consumer movement or business operations amid the Covid-19 pandemic. Most retail stores in which their products are sold have been deemed to be essential businesses by authorities and remain open.

  • Liquid Market To Reach $3.3 Billion This Decade

    Liquid Market To Reach $3.3 Billion This Decade

    Photo: Vaperesso

    The global e-liquid market could reach $3.3 billion before the end of the decade, expanding at a compound annual growth rate of 13.4 percent from 2021 to 2027, according to a new study published by Grand View Research.

    “The advent of e-cigarette products such as squonk mods and pod systems has increased its popularity and adoption in recent years. The rising demand for these products globally is expected to drive the market over the forecast period,” the researchers wrote. “In addition, the general presumption that these products can reduce the risk of lung disorders is fueling the market.”

    In terms of flavor, the menthol segment is anticipated to register the highest growth rate over the forecast period owing to increasing adoption among young people, especially in students, coupled with its availability at affordable prices, according to the report.

    “In terms of type, the bottled segment is expected to register growth at a significant pace from 2021 to 2027. This can be attributed to the fact that bottles allow users to make their own e-juice by adding two or more e-liquids,” the report states. “In terms of distribution channel, the online segment is anticipated to register a significant growth rate over the forecast period as it provides customers with a wide variety of e-liquids.”

    Market players are focusing on mergers and acquisitions, collaborations, and partnerships in order to expand their distribution networks and build an international presence for their brands, according to the report. “For instance, in January 2018, Nicopure, a manufacturer of e-cigarette and e-liquid, announced a partnership with Vapоr Ltd., a distributor of e-cigarette and e-liquid in Bulgaria,” the authors wrote. “Nicopure appointed Vapоr Ltd. as one of its distributors in Bulgaria. The partnership allowed the former to expand its brand presence in Bulgaria.”

    What’s more, key players are increasingly investing in the marketing and distribution of their products owing to rising competition in the market. For instance, in July 2019, Turning Point Brands invested $3 million in the Canadian distribution firm ReCreation Marketing, according to the report. Through the ReCreation Marketing platform, the company launched RipTide, an e-liquid vape technology, and a variety of Nu-X products in Canada.