Tag: Featured

Stories featured at the top of tobaccoreporter.com

  • Economic Zone Probes Cigarette Companies

    Economic Zone Probes Cigarette Companies

    Image: Tobacco Reporter archive

    The Philippine Economic Zone Authority (PEZA) and the Bureau of Internal Revenue (BIR) are investigating two unnamed PEZA-registered cigarette manufacturers, reports the Manila Bulletin.

    The manufacturers were allegedly “found to be deficient in compliance with BIR registration requirements for cigarette manufacturers.”

    “PEZA continues with its own investigation into this matter and had earlier withheld import shipments of these enterprises until a Writ of Preliminary Injunction was issued by the Court,” a statement read.

    PEZA stated that “other cigarette manufacturers registered with PEZA engage [in] best practices, such as JT [Japan Tobacco] International Asia Manufacturing Corp.” PEZA also stated it will apply its own rules and regulations relating to potential penalties against the manufacturers. “This is distinct and different from whatever penalties BIR may impose upon these enterprises.”

    “Along with BIR and BOC [Bureau of Customs], PEZA vows to strengthen, integrate monitoring, compliance systems and processes in our economic zones to prevent smuggling, promote efficient tax collection, preserve investors’ cooperation, and maintain their trust and confidence in the government’s policies and processes,” noted Charito “Ching” Plaza, PEZA’s director general. The organization will coordinate with the Philippine National Police, the Armed Forces of the Philippines, local government units and other agencies.

  • U.S. Vapor Mail Ban Reverberates Worldwide

    U.S. Vapor Mail Ban Reverberates Worldwide

    Photo courtesy of UKVIA

    The impact of the pending U.S. restrictions on shipping vapor products is being felt internationally. The U.K. Vaping Industry Association (UKVIA), for example, has expressed “deep concern” about the measures, saying that U.K. businesses are affected.  

    In late December, Congress voted into law a $2.3 trillion coronavirus relief and government funding bill that contains a provision banning the U.S. Postal Service (USPS) from delivering vapor products.

    The USPS was already prohibited from delivering cigarettes and smokeless tobacco products to consumers under the PACT Act. The law passed in December extends the act’s original definition of “cigarette” to include electronic nicotine-delivery systems.

    Tobacco and vapor companies may use private services to ship their products to consumers, but the PACT Act requires them to register with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the tobacco tax administrators of the states into which a shipment is made. Delivery sellers are further required to verify the age and identity of the customer at purchase and maintain records of delivery sales for a period of four years after the date of sale, creating substantial administrative burdens.

    Critically for the vapor industry, the most popular carriers, Federal Express (FedEx) and United Parcel Service (UPS), have recently announced that they would cease all deliveries of vapor products.

    “We have had orders not being collected, and our own shops not receiving stock in a reliable manner, all of which impacts customers,” said Joe Bevan, director of UKVIA member Celtic Vapours. “As the majority of our business is currently online, we need efficient delivery of stock to provide the quickest service.”

    We have had orders not being collected, and our own shops not receiving stock in a reliable manner, all of which impacts customers.

    “At a time when many vapers are unfortunately unable to visit their local vape store, this is making it even more difficult for them to receive the consumable products they rely upon,” said Richard Russell, operations manager at Vape Distribution. “Certain carriers perhaps don’t realize that this action could lead vapers to revert back to smoking.”

    “The vaping supply chain is a global one, bringing together resources and expertise from around the world,” said John Dunne, director general at UKVIA. “It is bitterly disappointing to see these American restrictions having a negative impact in the U.K., but the nature of the supply chain makes it inevitable. In the EU, too, we are hearing of vaping businesses being turned away from major carriers.

    John Dunne

    “We have had orders not being collected, and our own shops not receiving stock in a reliable manner, all of which impacts customers,” said Joe Bevan, director of UKVIA member Celtic Vapours. “As the majority of our business is currently online, we need efficient delivery of stock to provide the quickest service.”

    “At a time when many vapers are unfortunately unable to visit their local vape store, this is making it even more difficult for them to receive the consumable products they rely upon,” said Richard Russell, operations manager at Vape Distribution. “Certain carriers perhaps don’t realize that this action could lead vapers to revert back to smoking.”

    “The vaping supply chain is a global one, bringing together resources and expertise from around the world,” said John Dunne, director general at UKVIA. “It is bitterly disappointing to see these American restrictions having a negative impact in the U.K., but the nature of the supply chain makes it inevitable. In the EU, too, we are hearing of vaping businesses being turned away from major carriers.

    “The potential impact on public health is grave as so many people are relying on shipped goods as a lifeline during the pandemic. Without proper access to harm-reduction products, we know people can revert to smoking cigarettes—today in the U.S. but perhaps tomorrow in the U.K. With businesses already struggling through lockdown and our health services under great strain, supply chain issues really are the last thing we need.

    “I call on the distribution industry, many of whom have been partners of the vaping industry for many years, to do all they can to support their U.K. customers and to avoid the blanket implementation of U.S. restrictions worldwide.

    “Furthermore, I call on the U.K. government to ensure that carriers in this country are free to continue to deliver vaping products to retailers and direct to consumers and to resist any urge to follow the U.S. down this regressive route.”

  • U.S. Graphic Health Warnings Delayed Again

    U.S. Graphic Health Warnings Delayed Again

    Image: FDA CTP

    A district court judge in Texas has again delayed the effective date for graphic health warnings on U.S. cigarette packs, according to reports in The Winston-Salem Journal and Lexus Legal News. The new date is April 14, 2022, pushed back from Jan. 14, 2022.

    This marks the third delay for the warnings. On May 8, 2020, a court ordered the effective date to be delayed from June 18, 2021, to Oct. 16, 2021, because of the coronavirus. In December, Judge J. Campbell Barker further postponed the new requirements to Jan. 14, 2022, agreeing with the tobacco industry’s assertion that question about the validity of the rule remain unanswered.

    The Food and Drug Administration released its final rule requiring new graphic warnings for cigarettes in March 2020. The rule calls for labels that feature some of the lesser known health risks of smoking, such as diabetes, on the top half of the front and back of cigarette packages and at least 20 percent of the area on the top of cigarette advertisements.

    The warnings include statements that tobacco smoke can harm children and that smoking can cause bladder cancer and neck and head cancer.

    The 11 new warnings must be randomly and equally displayed and distributed on cigarette packages and rotated quarterly in cigarette advertisements.

    In April and May 2020, cigarette manufacturers and retailers sued the FDA, arguing that the graphic warning requirements amount to governmental anti-smoking advocacy because the government has never forced makers of a legal product to use their own advertising to spread an emotionally charged message urging adults not to use their products.

    In the more recent challenge, tobacco companies argued that the deadline was too onerous due to the impact of the Covid-19 pandemic. “These expenditures of resources for the purpose of meeting the rule’s requirements constitute irreparable harm because plaintiffs cannot recover money damages should the rule and/or the graphic warning requirement in the Tobacco Control Act be invalidated,” the companies said in a legal filing.

    This is the Food and Drug Administration’s second attempt to enact graphic health warnings under the 2009 Family Smoking Prevention and Tobacco Control Act. The first rule was struck down by the federal court in the District of Columbia as a violation of the First Amendment.

  • Imperial Celebrates Women’s Day

    Imperial Celebrates Women’s Day

    Alison Clarke
    (Photo: Imperial Brands)

    Employees of Imperial Brands are taking part in a series of online activities today to celebrate International Women’s Day (IWD).

    The event aims to highlight the significant benefits of gender balance to society and to the business and the acts people can take as individuals to call out gender bias.

    The program of events has been arranged by a group of employees from various parts of the Imperial business and builds on a range of country-specific activities held in recent years. 

    Attendees will hear presentations and stories from senior female leaders in the business, including Chief People and Culture Officer Alison Clarke, and several external speakers. Among the attendees will be Imperial Brands’ chair, Therese Esperdy, and Imperial Brands’ CEO, Stefan Bomhard, who will make an opening address.

    The theme of this year’s International Women’s Day is Choose To Challenge. “This is the culture we want to build at Imperial: a culture of individuals that think for themselves and bring their best game every day because they feel they belong and are included,” said Bomhard in a statement.

    “We are building a company with a challenger mindset and that means having a diverse population of employees who are open to change and new ideas.”

    Imperial is committed to increasing female representation with senior management roles to 30 percent by 2023. Last year, Imperial conducted a global diversity and inclusion study, and the results will help shape the company’s new culture and ways of working in support of its new strategy.

  • VPR Brands Sues for Patent Infringement

    VPR Brands Sues for Patent Infringement

    Photo: VPR Brands

    VPR Brands has filed lawsuits against three more vapor companies for violating its “auto draw” patent. The cases are in addition to suits filed against three other companies in February.

    Granted in 2009, the patent covers vaping products containing an electric airflow sensor, including a sensor comprised of a diaphragm microphone. The sensor turns the battery on and off and covers auto-draw, buttonless e-cigarettes, cigalikes, pod devices and vaporizers using an airflow sensor.

    “Just this week, we have filed three additional lawsuits, which brings the total to six with many more expected and likely as almost every company in the vape space has at least one product which uses the patented ‘auto draw’ technology.” said Kevin Frija, CEO of VPR Brands, in a statement. “We will be aggressively pursuing every company infringing on our patent no matter how small or how large they may be.”

    VPR Brands and SRIPLAW, an intellectual property firm, have started to identify and notify companies they suspect of infringing on the VPR patent. Most recently, VPR Brands and SRIPLAW filed litigation against Mong, B&G Trading and Lightfire Holding. The three previous suits were filed against Jupiter Research, Cool Clouds Distribution and XL Vape.

    “We want to make sure VPR Brands’ patent, which is valid until 2030, is enforced and our intellectual property rights are protected,” said Frija. “We intend to send a clear message to the industry that we mean business and of course, as they say, ‘business is business,’ it’s nothing personal; in the end, its just business.”

  • KT&G to Hold Annual General Meeting

    KT&G to Hold Annual General Meeting

    KT&G will hold its 34th annual general meeting (AGM) of shareholders on March 19, 2021, at 10 a.m. Korea Standard Time.

    The meeting will be held in Vision Hall at the KT&G Human Resources Development Institute in Daejeon.

    Shareholders who attend the AGM are required to attend with their social security ID cards (proof of investment for foreign residents) and can exercise their voting rights indirectly using a proxy statement.

    KT&G solicits the exercise of voting rights by proxy.

    To secure shareholders’ safety and prevent infection or spread of Covid-19, the company recommends exercising voting rights by using the e-proxy system rather than attending the AGM.

    If an amendment motion is submitted on an item at the shareholder meeting, the votes previously submitted via the e-system are regarded as abstained.

    KT&G posted record financial results in 2020. An agenda of the AGM is available here.

  • PMI Launches Inclusivity Initiative

    PMI Launches Inclusivity Initiative

    Sikle Muenster (Photo: PMI)

    Philip Morris International (PMI) has launched a year-long research and convening initiative titled “Inclusive Future.” The initiative will explore best practices and established thought leadership to advance the discourse surrounding inclusivity and devise effective and timely ways to promote inclusive cultures.

    “Measuring diversity is the easy part. Measuring and understanding inclusivity is far more complex as we discovered through trialing inclusivity measurement efforts at PMI,” says Silke Muenster, chief diversity officer at PMI, in a statement.

    “While established frameworks, language and tools exist for measuring inclusivity today, it is clear that they are far from adequate. In the context of a world that shifted radically in 2020, this new initiative will help us to develop compelling ways to further inclusion within the PMI global organization and, we hope, beyond our walls as well.”

    The Inclusive Future work will unfold in phases over the next 12 months, starting with a quantitative and qualitative exploration of the state of inclusion today. This facet of the study will feature a year-long research partnership with the Institute for Management Development in Lausanne, Switzerland, to study how inclusion is currently measured and how this should evolve to drive impact. This will culminate in the publication of the Inclusive Future study results in March 2022.

    As part of the initiative launch, Muenster will participate in a virtual event on International Women’s Day hosted by flagship SHE media site BlogHer alongside other female change makers dedicated to advancing economic empowerment for women everywhere. She will also speak on a high-level panel at the Gender Summit on March 10.

  • German Vapor Tax Proposal a ‘Disaster’

    German Vapor Tax Proposal a ‘Disaster’

    Plans by Germany’s governing coalition to tax vapor products are a disaster for public health and the economy, according to the country’s e-cigarette trade association, VdeH. The move will make vapor products more expensive than combustible cigarettes, which are widely acknowledged to be considerably more harmful to health.

    Under the plans, e-liquids will attract a tax of €4 per 10 mL bottle from July 1, 2022. On Jan. 1, 2024, the tax will increase to €8 plus VAT, i.e. €9.52 per 10 mL bottle. Based on an average sales price of about €5 per bottle, this amounts to a tripling of the retail price, says VdeH.

    “These tax plans leave you stunned, and one initially suspects a calculation error,” said Michal Dobrajc, executive chairman of the VdeH, in a statement. Such a price increase, he added, could only have been passed with the intention to kill off vaping.

    While not opposing e-cigarette taxation as such, the VdeH said fiscal measures should weigh the risks of vaping against those of smoking. Based on what is known about those relative risks, the tax on vapor products should not exceed 5 percent of that on tobacco products, according to the association. The governing coalition’s plans amount to 75 percent of the tobacco tax in Germany.

    The VdeH urged the German government to heed the experience of other countries.

    A similar tax policy in Italy caused the vapor market to collapse even as tobacco sales increased. Tax collections shriveled and the black market thrived. The Italian government was eventually forced to reduce the tax burden on vapor products by 90 percent. Estonia and Hungary had comparable experiences.

    The biggest losers of the governing coalition’s plans, according to the VdeH, are former smokers who successfully quit their habit with the help of e-cigarettes and current smokers who will not attempt to switch under the new tax regime. A police union has already described the tax plans as a “startup for smugglers,” the association noted.

  • More Tobacco Use During Lockdown

    More Tobacco Use During Lockdown

    Photo: Tobacco Reporter archive

    Pandemic-related anxiety, boredom and irregular routines were cited as major drivers of increased nicotine and tobacco use during the initial Covid-19 lockdown, according to research just released by Columbia University’s Mailman School of Public Health. The study highlights ways that public health interventions and policies can better support quit attempts and harm reduction, both during the Covid-19 pandemic and beyond. The findings are published in the International Journal of Drug Policy.

    Between April and May 2020, the researchers conducted telephone interviews with adults across the United States who use cigarettes and/or electronic nicotine-delivery systems (ENDS), such as e-cigarettes. Participants in the study were recruited using an advertisement campaign on Facebook and Instagram. During this window, nearly 90 percent of the U.S. population experienced some form of state lockdown, with 40 states ordering nonessential businesses to close and 32 states enacting mandatory stay-at-home orders. At the time of their interviews, all participants were voluntarily isolating at home unless required to leave the house.

    Nearly all participants reported increased stress related to Covid-19—namely, fears about the virus, job uncertainty and the psychological effects of isolation—and described this as the primary driver of increased nicotine and tobacco use. Decreased use, while less common, was prevalent among “social” tobacco users, who cited fewer interpersonal interactions during lockdown and a fear of sharing products.

    At the community level, retail access impacted cigarette and ENDS use differently. While cigarettes were universally accessible in essential businesses, such as convenience stores and gas stations, access to preferred ENDS products was more limited since vape shops and other specialty ENDS retailers were typically deemed nonessential and required to close or limit hours. This drove some ENDS users to order their products online, which often resulted in long wait times due to shipping delays or product backorder as a result of high demand. As a result, some dual users of cigarettes and ENDS increased their use of readily available cigarettes.

    “Pandemic response policies that intentionally or inadvertently restrict access to lower risk products—through availability, supply chains or even postal service slowdowns—while leaving more harmful products widely accessible may have unintended consequences that should be considered during policy development,” said Daniel Giovenco, assistant professor of sociomedical sciences at Columbia Mailman School and the study’s lead author.

    Given that tobacco use behaviors are expected to increase among some individuals during this sustained period of uneasiness, Giovenco and colleagues proposed several key policy recommendations: expansion of cessation resources and services, including their adaptation for remote delivery; establishment and enforcement of smoke-free home rules to protect household members; and enabling equivalent access to lower risk products—such as ENDS and nicotine-replacement therapy—to facilitate harm reduction among those who cannot or do not want to quit using nicotine at this time.

    “While quantitative, survey-based studies provide valuable insight into changes in tobacco use during lockdown periods, existing research has drawn mixed conclusions. Our approach was the first to qualitatively capture the complex drivers and mechanisms that may help explain varied behavioral shifts,” noted Giovenco. “Covid-19 mitigation strategies to curb transmission will likely continue for the foreseeable future, with many permanently altering elements of the workplace, education and consumer behaviors. Our findings can help tailor intervention and policy work to address multi-level determinants of tobacco use in the Covid[-19] era and the years ahead.”

  • Delnevo Joins FDA Tobacco Scientific Advisory Committee

    Delnevo Joins FDA Tobacco Scientific Advisory Committee

    Cristine Delnevo

    Cristine Delnevo, director of the Rutgers Center for Tobacco Studies and a professor of health behavior, society and policy at the Rutgers School of Public Health, has been appointed to serve on the U.S. Food and Drug Administration’s Tobacco Products Scientific Advisory Committee (TPSAC).

    Delnevo will be one of nine voting members on the committee, which advises the FDA on regulating tobacco products. Her four-year appointment will conclude on Jan. 31, 2025.

    “I have valued the importance of this FDA advisory committee since the signing of the Family Smoking Prevention and Tobacco Control Act in 2009,” said Delnevo. “I am thankful to those who served before me and look forward to working with an esteemed group of colleagues to help the FDA make regulatory decisions to protect public health and reduce tobacco-related morbidity and mortality.”

    Delnevo’s expertise covers population-level tobacco behavior trends, noncigarette tobacco products such as cigars and e-cigarettes, tobacco control policy and regulation, and survey methods research. Delnevo has also authored more than 200 scientific articles, reports and book chapters and serves as a senior associate editor for Tobacco Regulatory Science.