Tag: Featured

Stories featured at the top of tobaccoreporter.com

  • Stora Enso Reports ‘Solid Performance’

    Stora Enso Reports ‘Solid Performance’

    Photo: Tobacco Reporter archive

    Sales of Stora Enso decreased by 13.5 percent to €2.08 billion ($2.46 billion) in the third quarter of 2020 over the comparable 2019 quarter, due to lower deliveries and prices. The company reported an operating profit of €145 million, down from €170 million in the previous quarter.

    “We have delivered a solid result for the quarter and I am satisfied with our performance, considering the unprecedented uncertainty and volatility on markets around the world,” said Stora Enso President and CEO Annica Bresky in the company’s interim report.

    “Although we report a decreased operational EBIT of €175 million compared to last year, excluding paper, operational EBIT remained at the same level due to strong results in the packaging materials, wood products and forest divisions.

    “The pandemic’s biggest effect continues to be on our paper business. I was very glad to see a return to positive cash flow for the quarter. The market also remains challenging for biomaterials, with low pricing. On a positive note, excluding paper, our operational EBIT margin increased to 11.8 percent, a sign of the resilience of our growth businesses and good cost management.”

    Stora Enso has discontinued its quarterly guidance and annual outlook until further notice, due to the uncertainty in the global economy.

     

  • Study: Lower Nicotine Reduces Addiction

    Study: Lower Nicotine Reduces Addiction

    A recent study shows that lowering nicotine content in cigarettes reduces nicotine addiction in vulnerable populations (those with psychiatric disorders, those suffering with addiction or those with socioeconomic disadvantage).

    For 12 weeks, participants were randomly assigned research cigarettes that contained 0.4 mg of nicotine per gram of tobacco, 2.4 mg of nicotine per gram of tobacco or 15.8 mg of nicotine per gram of tobacco. The latter is equivalent to standard cigarettes currently on the market while the two former are considered very low nicotine content.

    Daily smoking rate decreased by about 30 percent in those using the very low nicotine cigarettes.

    “We know that lower smoking rate and dependence severity are two important predictors of successful smoking cessation should someone attempt to quit,” said Stephen T. Higgins, director of the Vermont Center on Behavior and Health at the University of Vermont’s Larner College of Medicine.

    “Our findings in this and earlier studies suggest that lowering the nicotine content in all cigarettes to minimally addictive levels would benefit all smokers, including those most vulnerable to smoking and addiction.”

  • PMFTC Vows Support for Filipino Farmers

    PMFTC Vows Support for Filipino Farmers

    Photo: PMFTC

    Philip Morris Fortune Tobacco Corp. (PMFTC) plans to spend more than $100 million on leaf from Filipino farmers over the next few years, reports Business World Online, citing company officials.

    “While dependent on tobacco industry dynamics and the government’s excise tax policies, we anticipate spending approximately $130 million for more than 45,000 tons of Philippines green tobacco leaf over the next three years,” said PMFTC President Denis Gorkun in a letter addressed to the secretaries of Finance and Agriculture departments.

    According to Gorkun, Philippine leaf production has been falling in the wake of recent tax hikes on tobacco products and the expected surge in the illicit trade of cigarettes because of an increase in prices.

    A new round of excise tax increases on tobacco and vapor products took effect this year after Republic Act No. 11467 was signed into law in January.

    PMFTC sourced 43 percent of its leaf purchases from local farmers in 2019, both directly and through suppliers.

    PMFTC is also contemplating a $1 million investment to boost the National Tobacco Administration’s capacity to test aerosols and check product compliance.

    The company will continue its program that helps 15,000 tobacco farmers in tobacco-producing provinces become more competitive, said Gorkun.

    “We would also like to take this opportunity to assure PMFTC’s support for reasonable regulations applicable to tobacco products. The development of balanced and fair regulations will not only protect the interest of various stakeholders but also ensure the sustainability of the tobacco industry and the livelihood of our Filipino tobacco farmers, especially with the economic challenges we are facing today,” he said in his letter.

    Finance Secretary Carlos G. Dominguez III and Agriculture Secretary William D. Dar earlier asked tobacco manufacturers to buy more from local farmers and help the industry recover from the impacts of the coronavirus disease 2019 (COVID-19) pandemic.

    The lockdowns and other restrictions imposed to curb the spread of the disease has affected the flow of agricultural goods including tobacco.

    Japan Tobacco International on Monday said it would increase its purchases of Philippine tobacco to 4.6 million kg next year.

    Philippine law requires tobacco companies in the country to buy at least 15 percent of their leaf requirements from local farmers. 

  • PMI Reports Third-Quarter Results

    PMI Reports Third-Quarter Results

    Photo: PMI

    Philip Morris International (PMI) reported net revenues of $7.45 billion in the third quarter of 2020, down 2.6 percent from the comparable 2019 quarter. Operating income was $3.24 billion, compared to $2.79 billion in last year’s quarter. On an adjusted basis, operating income was up 1.9 percent, while the company’s adjusted operating income margin improved to 43.6 percent from 41.7 percent between the two quarters.

    PMI’s cigarette and heated tobacco unit shipments were down by 7.6 percent, reflecting a decline in cigarette shipments of 9.8 percent to 165.46 billion units and an increase of heated tobacco unit shipments of 18.7 percent to 19 billion units.

    The company estimates the total number of IQOS users at quarter-end at approximately 16.4 million, of which approximately 11.7 million have stopped smoking and switched to IQOS.

    “We delivered stronger-than-anticipated results in the third quarter, despite the ongoing challenges of the pandemic, with adjusted diluted EPS [earnings per share] growth of 5.6 percent on an organic basis,” said PMI CEO Andre Calantzopoulos in a statement.

    “The sustained momentum of IQOS was excellent, with an estimated 16.4 million total users at the end of September and smoke-free products accounting for nearly one-fourth of our total net revenues in the quarter.

    “Furthermore, our combustible tobacco business recorded an improved sequential performance, supported by better underlying total industry volumes across both developed and emerging markets.

    “Despite continued headwinds for our duty-free business and in Indonesia, we are raising our full-year 2020 guidance and now anticipate adjusted diluted EPS growth of around 5 percent to 6 percent on an organic basis, compared to a range of approximately 3.5 percent to 5.0 percent previously,” Calantzopoulos said.

    PMI further noted that, despite the ongoing Covid-19 pandemic, it has sufficient access to inputs for its products and is not facing any significant business continuity issues with respect to key suppliers.

    Most of its manufacturing facilities, including all heated tobacco unit factories, are operational. The company also has adequate inventories of finished goods based on existing sales trends.

  • Regulator Criticized Over Bloomberg Funds

    Regulator Criticized Over Bloomberg Funds

    Photo: Philip Morris Fortune Tobacco Corp.

    Consumer advocates have threatened to file graft charges against the Philippine Food and Drug Administration (FDA), reports The Manila Bulletin.

    Previously, the FDA admitted to receiving funds from Bloomberg Initiative and the Union, both of which are known anti-tobacco groups. Under Republic Act 6713, this is prohibited.

    The admission came out during a discussion on heated-tobacco products and resulted in a call for an investigation of the FDA.

    “If the FDA ignores the views of legitimate and impacted stakeholders and proceeds with the adoption of an administrative order lifted from the playbook of their anti-tobacco patrons, we would be constrained to file an anti-graft case with the Ombudsman,” said Anton Israel, president of the Nicotine Consumers Union of the Philippines.

  • ‘Global State of THR’ Set for Release

    ‘Global State of THR’ Set for Release

    Photo: Knowledge-Action-Change

    Knowledge-Action-Change is set to launch a new report documenting the advances and significant challenges facing tobacco harm reduction in 2020.

    Titled, “Burning Issues: The Global State of Tobacco Harm Reduction 2020,” the report will be released Nov. 4, 2020.

    The report is the second in a biennial series from the Global State of Tobacco Harm Reduction (GSTHR), a project established to map the development of tobacco harm reduction and use, availability and regulatory responses to safer nicotine products around the world.

    The launch event, being held in partnership with THR Malawi, will be livestreamed over three interactive sessions from London; Lilongwe, Malawi; and locations around the world. Guest speakers include the neuropsychopharmacologist David Nutt, Australian Member of Parliament Fiona Patten, the Counterfactual’s Clive Bates, INNCO President Samrat Chowdhery, New Nicotine Alliance U.K.’s Martin Cullip and THR Malawi’s Chimwemwe Ngoma.

     The audience will also hear from members of the GSTHR team, including Executive Editor Harry Shapiro and Project Director Gerry Stimson, who will explore the report’s findings in detail. Burning Issues addresses both progress and achievements in the field since the first edition was published in 2018 but also identifies the major obstacles preventing tobacco harm reduction from fulfilling its public health potential worldwide.

     Registered audience members will be invited to pose their questions live at the end of each panel. Sessions will be available for playback, and the full report will be available for download from Nov. 4. Registration is free.

  • ‘U.S. Election a Net Negative for Tobacco’

    ‘U.S. Election a Net Negative for Tobacco’

    Photo: Tobacco Reporter archive

    The U.S. election will likely be a net negative for tobacco companies with exposure to the U.S. market regardless of the outcome, according to Goldman Sachs.

    The investment bank recently took an in-depth look at the key tobacco policy issues potentially at stake, including greater excise taxes, flavor bans, a federal nicotine cap on cigarettes and possibly a push for raising the minimum tobacco purchasing age to 25.

    Goldman Sachs says the highest likelihood is for greater excise tax increases, regardless of the election outcome, given the severity of government budget shortfalls in the wake of Covid-19.

    The bank also expects more states and local jurisdictions to pursue flavor bans for tobacco and nicotine products, following such actions in five states and the negative public sentiment since the youth e-cigarette crisis of 2018-2019.

    At the same time, Goldman Sachs predicts a multi-year and uncertain path for a potential cigarette menthol ban or nicotine cap due to the complexity of the U.S. Food and Drug Administration’s rulemaking process, the risk of significant unintended consequences and prolonged litigation.

    Inaction on menthol would be most beneficial to British American Tobacco, which has the greatest exposure to menthol cigarettes in the U.S. among the major tobacco companies.

    Altria Group is most at risk from the likely tax increase scenario, considering its market share leadership in combustible cigarettes, according to Goldman Sachs.

    For the industry overall, social distance and remote working practices have resulted in more tobacco and nicotine use. Nonetheless, Goldman Sachs expects cigarette volume declines to re-accelerate toward historical declines in 2021.  

  • Zeller to Present at FDLI Conference

    Zeller to Present at FDLI Conference

    Photo: David Parker

    Mitchell R. Zeller, director of the Center for Tobacco Products (CTP) at the U.S. Food and Drug Administration (FDA), will provide an update on the FDA’s comprehensive plan for tobacco and nicotine products at the Food and Drug Law Institute’s (FDLI) Tobacco and Nicotine Products Regulation and Policy Conference on Oct. 21, 2020, at 11:15 a.m. Eastern time. 

    This year’s conference brings together a diverse group of stakeholders, including public health advocates, researchers, manufacturers, lawyers, consumer interest groups, entrepreneurs, governmental agencies and others to discuss effective regulation across the broad spectrum of tobacco and nicotine products in the United States.

    Panelists will examine the public health impact of regulating nicotine content across the broad spectrum of tobacco and nicotine products; the ways in which policies can help minimize users’ health risks; and the mitigation of potential unintended consequences.

  • HMRC Testing U.K.-Only Tracking System

    HMRC Testing U.K.-Only Tracking System

    Photo: Tobacco Reporter archive

    Her Majesty’s Revenue and Customs (HMRC) is testing a new U.K.-only track-and-trace system this month to prepare for the country’s full exit from the European Union (EU) on Dec. 31, 2020, reports The Grocer.

    Wholesalers will not need to buy new hardware for the new system, but they will have to upgrade software to comply. Retailers selling directly to the public will not have to make any changes.

    “To minimize changes for businesses, it will be possible to use existing scanning devices,” sand an HMRC spokesman. “However, businesses will need to make arrangements with their scanning equipment solution provider to connect and submit data to the new U.K. gateway.”

    Wholesalers in Northern Ireland will need to submit data to both the new system and the existing EU system; some EU rules will continue to apply in Northern Ireland after the U.K. leaves the EU.

  • Juul Labs to Exit Germany

    Juul Labs to Exit Germany

    Photo: Juul Labs

    Juul Labs will withdraw from Germany at the end of the year, reports W&V, citing a company spokesman in Hamburg.

    The company said it needed to set priorities in to be successful in the long term. “In this way one can invest in research and development and future products in core markets,” it stated.

    German consumers will be able to purchase Juul products until stocks run out.

    Following a wave of layoffs, Juul’s German subsidiary had only about a dozen employees left, which have now been terminated, as well.

    Juul had already exited Austria this summer and plans to leave Switzerland soon.

    The company, which enjoyed great success in the United States until a regulatory backlash, has found it challenging to crack the European market due to EU limits on nicotine.

    Juul products sold in the EU contain significantly lower doses of nicotine than those on the U.S. market, making it difficult for them to compete against combustible cigarettes in Europe.

    Recently, Juul was also forced to temporarily halt shipments in Germany because its packages were missing a mandatory recycling symbol.