Tag: Featured

Stories featured at the top of tobaccoreporter.com

Turning Point Invests in Cannabinoid Business

Photo: Herbal Hemp from Pixabay
Turning Point Brands (TPB) will invest $15 million Dosist, a global cannabinoid company. It has also signed an exclusive co-development and distribution agreement for a new CBD brand, created in partnership with Dosist’s THC-free business unit.
TPB has an option to invest another $15 million at predetermined terms within the next 12 months.
“The cannabis market is exploding, and now is the opportune time to invest in the space and significantly expand our addressable market,” said Larry Wexler, CEO of TPB, in a statement. “With its leadership in results-oriented plant-based formulas and dose control technology, global recognition, consumer trust and scalability, Dosist was the clear choice to be our new partner in this critical growth market.”
“We are extremely proud to partner with Turning Point Brands on our next phase of growth and distribution as we continue to transcend the way consumers think about their health and wellness,” said Gunner Winston, CEO of Dosist. “Turning Point’s leadership team has demonstrated remarkable foresight and vision about the future and opportunity for federally legal cannabinoid products. The synergy between our brands around this scope and mission is incredible and we are excited by what we will achieve together with this partnership.”
Dosist’s cannabis products are currently available in California, Colorado, Nevada and Canada, serving a total dispensary network of more than 700 stores. The company has plans to launch into key new markets in the coming months, adding geographies as they continue their North American expansion.
October 28, 2020
Record Quarter for Swedish Match

Photo: Swedish Match
Swedish Match reported record sales and operating profit from product segments in the third quarter of 2020.
Sales and operating profit increased for the Smokefree and Cigars segments in both the U.S. and Scandinavia, elevated by Covid-19 related effects on consumer demand and channel shifts.
In local currencies, sales increased by 23 percent for the third quarter. Reported sales increased by 15 percent to SEK4.4 billion ($504 million).
In local currencies, operating profit from product segments increased by 37 percent for the third quarter. Reported operating profit from product segments increased by 28 percent to SEK2.05 billion
Operating profit amounted to SEK2.02 billion for the third quarter.
Profit after tax, which includes a charge of SEK286 million following adverse ruling in a tax case, amounted to SEK1.19 billion for the third quarter.
Lars Dahlgren
“Swedish Match delivered an outstanding performance during the third quarter,” said CEO Lars Dahlgren, CEO of Swedish Match in the company’s quarterly report. “While we estimate that Covid-19 related effects had a notably positive net impact on group earnings, the underlying financial development across our product segments was strong.
“Impressive performance for Zyn in the U.S. continued to be the key contributor to profit growth. For this quarter we also noted a significant upturn in operating profit for our U.S. cigar business, as well as for our Scandinavian smokefree business—even when excluding Covid-19 related positive mix effects from increased domestic volumes in Norway that substituted deliveries to border trade and travel retail outlets.”
October 27, 2020
Japan Tobacco Invests in its Trier Factory

Photo: Hansruedi Etter from Pixabay
Japan Tobacco International (JTI) has invested €22.5 million ($26.6 million) in expanding production at its Trier, Germany, plant, reports Lokalo.de.
“Our plant in Trier has a special place in the JTI group,” said Peter Kilburg, plant manager. “We are one of only two plants in which all production steps are mapped—from raw tobacco storage to preparation and processing of the tobacco to the finished product. The investment in the double-digit million range strengthens the strategic importance of the Trier plant within JTI’s global supply chain—it is a clear commitment to the Trier production location.”
Further investments are planned for the coming years.
JTI invested €30 million in 2001 for the construction of the facility.
October 27, 2020
Fewer Young Americans Vaping

Photo: Aliaksandr Barouski – Dreamstime.com
The U.S. Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) have released new data from the 2020 National Youth Tobacco Survey (NYTS) showing a decline in youth use of e-cigarettes but an increase in use of disposable products.
Compared to 2019, the number of youth using e-cigarettes is down 1.8 million. However, the number of youth using disposable e-cigarettes has risen: 26.5 percent of high school users are using disposables, up from 2.4 percent in 2019, and 15.2 percent of middle school users are using disposables, up from 3 percent last year.
The use of flavored products is also high—more than eight out of 10 surveyed youth reported using flavored products. Fruit, mint, candy and menthol were the most commonly reported.
This is the first year the NYTS has distinguished between mint and menthol. Previously, products were identified in the survey as “mint/menthol.”
“After two years of disturbing increases in youth e-cigarette use, we are encouraged by the overall significant decline reported in 2020,” said FDA Commissioner Stephen Hahn. “This is good news; however, the FDA remains very concerned about the 3.6 million U.S. youth who currently use e-cigarettes and we acknowledge there is work that still needs to be done to curb youth use”
October 27, 2020
Japan Council Sets 2021 Leaf Prices and Cultivation Area

Photo: Kanenori
Japan’s Leaf Tobacco Deliberative Council has set the domestic tobacco cultivation area at 5,970 hectares for 2021, a decrease of 5.7 percent compared to the 2020 cultivation area.
The leaf tobacco purchase price will increase by 0.62 percent from last year to an average of ¥1,924.15 ($18.32) per kilogram for all leaf types.
The Leaf Tobacco Deliberative Council confers on matters concerning the cultivation and purchase of domestically grown leaf tobacco in response to inquiries by Japan Tobacco (JT).
Currently chaired by Yoshitsugu Minagawa, the council consists a maximum of 11 members, appointed by JT and approved by Minister of Finance from among representatives of domestic leaf tobacco growers and academic scholars.
October 26, 2020
Companies Challenge Flavor Ban

Photo: Michal Kalasek | Dreamstime.com
R.J. Reynolds Tobacco Co., American Snuff Co., R.J. Reynolds Vapor Co., Santa Fe Natural Tobacco Co., Philip Morris USA, John Middleton Co., U.S. Smokeless Tobacco Co., Helix Innovations, Neighborhood Market Association. and Morija filed a lawsuit seeking to repeal the California flavor ban law on Oct. 9.
The California law bans the sale of menthol cigarettes as well as all other flavored tobacco and vapor products except premium cigars, shisha and loose-leaf tobacco beginning Jan. 1, 2021.
The lawsuit seeks a ruling that “declare[s] that the Family Smoking Prevention and Tobacco Control Act pre-empts the California ban on the sale of all flavored tobacco products, making the law invalid and unenforceable; declare[s] that the law is invalid and unenforceable under the Commerce Clause of the U.S. Constitution; [and] issue[s] preliminary and permanent injunctions preventing the enforcement and implementation of the California ban on the sale of all flavored tobacco products,” according to CSP.
California Governor Gavin Newsom signed the ban Aug. 28. Opponents filed a petition to put the question to voters in a referendum to overturn it shortly after its passage.
October 26, 2020
Tobacco Growers Convene Online

The International Tobacco Growers Association (ITGA) will hold an online meeting, due to Covid-19, with its community of growers on Oct. 28, 2020 at 1 p.m. Western European Time in Portugal to celebrate World Tobacco Growers’ Day.
“This meeting aims to celebrate and thank the importance of the role of tobacco growers in the economies and social and rural environments of their regions and in these times of pandemic particularly, continuing with the activities inherent to the sector to ensure the proper functioning of value chains,” the organization wrote in a statement.
The session will be composed of the technical staff of the ITGA, growers’ associations from around the world and invitees.
The session is free to attend.

October 26, 2020
Medicago to Supply Covid-19 Vaccine

Photo: Arek Socha from Pixabay
Medicago, a biopharmaceutical company headquartered in Quebec City, Canada, has reached an agreement with Public Services and Procurement Canada to supply up to 76 million doses of its vaccine candidate for Covid-19, subject to Health Canada approval.
Innovation, Science & Economic Development, another department of the Canadian federal government, will contribute CAD173 million ($131 million) to Medicago to support its ongoing vaccine development and clinical trials, and for the construction of its Quebec City manufacturing facility.
Since 2008, Philip Morris Investments B.V. (PMIBV), a subsidiary of Philip Morris International (PMI), has been a shareholder of Medicago (in which it currently holds an approximately one-third equity stake) and has supported Medicago’s innovative plant-derived research and development focused on vaccines.
The investment is consistent with PMI’s own efforts to leverage science and innovation. Japan-based Mitsubishi Tanabe Pharma Corporation (MTPC) is the majority shareholder and PMIBV’s partner in Medicago. Among other things, PMIBV and MTPC will contribute additional funding to support Medicago’s efforts to develop a Covid-19 vaccine candidate.
“We welcome the collaboration announced between two departments of the Canadian government and Medicago to accelerate its efforts against Covid-19,” said PMI CEO André Calantzopoulos in a statement.
“Better outcomes can be achieved when governments and companies join efforts to promote shared objectives for the greater good. We are pleased to be able to support Medicago’s work to develop, substantiate, manufacture, and make available a Covid-19 vaccine candidate. We all hope they will be successful.”
Medicago began Phase 1 testing on volunteers on July 14 and is anticipating that Phase 2 trials will begin in early November 2020. If Phase 2 trials are successful, Phase 3 trials are expected to begin in December 2020.
October 24, 2020
New Tender for Tobacco Stamps

Photo: Taco Tuinstra
The Inland Revenue Department in Nepal has invited a fresh global tender for excise duty stickers for tobacco and alcohol products, reports The Kathmandu Post. A tender notice was issued on Oct. 14, and all participants must submit their bids by Nov. 29.
There has been a shortage of excise duty stickers in Nepal since the Indonesian supplier that was selected to supply them did not show up to sign the contract. The second-best bidder, a company from Lithuania, was not offered the contract due to “issues” with the company.
The company has moved to the Supreme Court, arguing that the law states the second bidder should be awarded the contract if the highest bidder does not sign the contract.
“Although the case is still pending in the court, it didn’t stop us from moving forward to call a fresh tender,” said Mukti Pandey, deputy director general at the Inland Revenue Department.
October 23, 2020
KT&G to Launch Lil Hybrid 2.0 in Japan

Photo: KT&G
KT&G will launch its Lil Hybrid 2.0 system Miix in Japan on Oct. 26 through its partnership with Philip Morris International (PMI), reports The Korea Times.
Unlike in Russia and Ukraine, where KT&G released Lil Solid, the Japan will get a Lil Hybrid 2.0 and a dedicated Miix stick. The first products to be sold will be available in matte black, cobalt blue, prism white and metallic bronze.
Consumers can choose from three stick types: Miix Regular, Miix Ice and Miix Mix.
“We will continue to provide various options to consumers in overseas markets through continuous cooperation with PMI,” said Lim Wang-seop, head of KT&G’s next-generation product business division.
October 23, 2020