Tag: Featured

Stories featured at the top of tobaccoreporter.com

Trump Bans Cuban Tobacco

U.S. President Donald Trump has banned U.S. citizens from bringing Cuban tobacco and alcohol into the U.S. as well as staying at Cuban government-owned hotels.

“Today, as part of our continuing fight against communist oppression, I am announcing that the Treasury Department will prohibit U.S. travelers from staying at properties owned by the Cuban government,” Trump said at a White House event. “We’re also further restricting the importation of alcohol and Cuban tobacco.”

Since being in office, Trump has been rolling back a detente with Cuba initiated by former President Barack Obama. Under Obama’s policy, U.S. citizens were allowed to bring back as much Cuban alcohol and tobacco as they could fit in their bags for personal use.

Under Trump’s ban, citizens will be able to buy Cuban alcohol and tobacco while in Cuba but will not be allowed to bring it back to the states.

“The current U.S. authorities insist on the application of a sanctions policy against Cuba that has not achieved the proposed objectives in 60 years,” said a Cuban embassy official in Washington. “It is a wrong policy that is widely rejected by American society and even among Cuban Americans.”

Political observers suggest Trump is trying to lock in the Cuban-American vote in Florida for the upcoming November presidential election.
September 24, 2020
BAT Calls for “Whole Society” Approach to Policymaking

Kingsley Wheaton (Photo: BAT)
British American Tobacco’s (BAT) Chief Marketing Officer Kingsley Wheaton called for meaningful change in the way that global tobacco and nicotine policies are developed. He stressed the need for a United Nations-style “whole of society” approach to policy development and emphasized the benefits that this more stakeholder-inclusive tobacco harm reduction approach could deliver.
Speaking at the first virtual GTNF, Wheaton also outlined the progress that BAT is making in transforming its business and pursuing its purpose to build “A Better Tomorrow.” He emphasized how a focus on innovation, transformation and sustainability is helping to accelerate change.
Highlighting the positive role that the industry’s expertise and science can and should play, Wheaton set out a five-point framework to accelerate progress toward more effective tobacco harm reduction policies, including: an evidence-based approach, allowing robust science to lead to greater consumer choice, quality and confidence; proportionate regulation where science-based relative risk is understood and differentiated to guide regulatory policy; freedom to innovate to ensure products can evolve to meet changing consumer preferences; engagement, dialogue and communication to ensure regulators and consumers can make well-informed decisions; and responsible marketing freedoms that facilitate the acceleration of movement of consumers from combustible to noncombustible products.
“At BAT, consumer-led innovation and product science are central to achieving our ‘A Better Tomorrow’ purpose,” says Wheaton. “We aim to reduce the health impact of our business through offering a greater choice of less-risky products to our consumers. We believe that a multi-category approach that includes e-cigarettes, tobacco-heated products and modern oral nicotine pouches is the most effective way to appeal to the diverse preferences of adult consumers around the world.
“However, the key to accelerating the movement of smokers to less-risky alternatives cannot be solved by our industry alone. We need a seat at the harm reduction table to discuss these issues directly and openly with all stakeholders—including regulators and public health professionals alike. Only through collaborative efforts can we develop effective regulatory solutions that will enable real choice for consumers whilst still serving tobacco-related public health objectives.”
September 23, 2020
E-cigarettes to be Made Prescription-Only

Starting next year, vapor products will be available to consumers only by a doctor’s prescription, Australia’s drug regulator said on Wednesday.
The Therapeutic Goods Administration (TGA) announced its interim decision to reclassify nicotine as a prescription-only medication, meaning nicotine for use in e-cigarettes, and e-juice containing nicotine, would become prescription-only from June 2021, according to The Guardian.
The changes would also affect heat-not-burn tobacco products, chewing tobacco, snuff and other novel nicotine products. The decision is open for consultation until Nov. 6.
Existing state and territory laws make the sale of nicotine e-cigarettes and e-juice illegal throughout Australia and its possession illegal everywhere but in South Australia.
In a statement, the TGA said the proposed changes meant that “while you would still be able to use the ‘personal importation scheme’ under the Therapeutic Goods Act 1989 to order online from your usual supplier … it would be clear that you would be required to have a prescription”.
“You would also be able to fill your prescription at your local community pharmacy, however your pharmacy may have to order it in for you,” the statement said.
September 23, 2020
South Korea to Double Liquid Taxes

Photo: Purilum
The government of South Korea will double taxes on e-liquids in 2021.
The “health promotion tax” on nicotine solutions will be raised from the current KRW525 ($0.45) to KRW1,050 a milliliter, according to a story in The Korea Herald.
Ministry of Health and Welfare officials said the revisions are intended to achieve a fairer taxation on varying types of tobacco products. Currently, the tax rate for e-cigarettes is only 43 percent of that for conventional cigarettes.
The ministry has also warned against the use of e-cigarettes or vaping products, citing global instances of lung injuries associated with their use.
September 23, 2020
Filter Cigarettes Sales to Drop this Year

Photo: Tobacco Reporter archive
Sales of filter cigarettes are expected to decline this year, according to the latest estimates from GlobalData, a leading data and analytics company.
Filter cigarettes remain the largest-selling tobacco product with global forecast sales of $651 billion in 2020, an 8 percent drop on sales of $707 billion in 2019.
This is a potential revenue loss of $56 billion for the tobacco industry as the Covid-19 pandemic continues to cause significant numbers of consumers to quit tobacco products. For plain cigarettes, the fall is higher at 11 percent, and in niche categories like chewing tobacco, forecast sales are expected to drop by 13 percent in 2020.

“Our data seems to corroborate what others, such as University College London, have found—people are quitting tobacco during the pandemic, and this is especially pronounced among younger people,” said Ryan Whittaker, consumer analyst at GlobalData. “Many younger consumers are working in less secure jobs and are more likely to move back with their parents upon losing employment.

“Lower disposable income from lack of employment, lockdown-related closures and social distancing have all resulted in fewer social settings for smokers. GlobalData’s most recent consumer survey found that around 8 percent of global consumers, which included more millennials than any other age group, intend to stop buying tobacco and tobacco alternatives, considering them to be beyond their current shopping budgets.

“Regardless of age, many consumers are understandably concerned about their respiratory health due to Covid-19’s propensity to attack the lungs. Our survey also found that over a quarter (26 percent) of global consumers are extremely concerned about their physical fitness and health with only 14 percent saying they are not concerned at all.

“As things stand, we expect that it will take at least until 2023 for global tobacco sales values to fully recover.”
September 23, 2020
FDA Outlines Steps After PMTA deadline

The U.S. Food and Drug Administration (FDA) has outlined the next steps for products with a submitted premarket tobacco product application (PMTA) now that the Sept. 9 deadline has passed.

According to the FDA, the process will consist of three phases. Phase one is acceptance of the application. Phase two is notification or filing, and phase three consists of review and action. The FDA website notes that “the PMTA process also includes a fourth phase for post-market reporting.”

The FDA plans to prioritize enforcement against electronic nicotine-delivery system (ENDS) products that are still being sold and that don’t have PMTAs submitted as well as any other “deemed new tobacco product” that does not have a submitted PMTA.

The FDA will not enforce the premarket review requirement for premium cigars.
September 23, 2020
‘Insufficient Progress on Harm Reduction’
Most of the 15 largest tobacco companies are not making substantial progress in advancing harm reduction, according to The Foundation for a Smoke-Free World (FSFW).
According to the foundation’s first Tobacco Transformation Index, some companies have made public commitments—backed by significant investments—to harm reduction, but many companies have not made these commitments. Committing to and implementing harm reduction and cessation strategies could help reduce tobacco-related deaths in the next two decades, according to the FSFW.
“The Tobacco Transformation Index is the first index to rank the world’s largest 15 tobacco companies on their relative performance, commitment and transparency to deliver material progress in supporting tobacco harm reduction,” according to a press release. The index assesses the companies’ strategy and management, product sales, capital allocation, product offer, marketing, and lobbying and advocacy from 2017 to 2019.
Swedish Match is ranked in first position. Philip Morris International, British American Tobacco, Altria, Imperial Brands, Japan Tobacco, KT&G, ITC Ltd., Swisher International, Tobacco Authority of Thailand, Vietnam National Tobacco, Gudang Garam, Djarum, Eastern Co. and China National Tobacco Corp. follow Swedish Match in the overall rankings.
September 22, 2020
Qom Designated Smoke-Free City

Photo: mostafa meraji from Pixabay
Iran declared Qom as the country’s first tobacco-free city, reports The Tehran Times.

The announcement starts a five-year plan that will eventually include 63 cities and 63 villages in the country. The plan will regulate the sale, supply and use of tobacco to protect people from secondhand smoke. Direct and indirect incentive mechanisms will be restricted, and tobacco users will be encouraged to quit smoking.

The plan is expected to gradually reduce the prevalence of smoking in the targeted areas.
September 22, 2020
PMI to Present During General Assembly

Photo: © James Steidl – Dreamstime.com
Andre Calantzopoulos
Philip Morris International (PMI) CEO Andre Calantzopoulos and Chief Operating Officer Jacek Olczak will discuss the role of science in driving innovation, progress and policy in a series of events over the course of the United Nations General Assembly this week.
Jacek Olczak
Events will take place between Sept. 21 and Oct. 1 and can be found on the PMI’s website.
The speeches and panel participation follow the launch of PMI’s latest white paper, “In Support of the Primacy of Science,” presenting findings from an independent survey, conducted by Povaddo for PMI, of more than 19,000 adults across 19 countries and territories.
The results show that citizens around the world want governments, public authorities and private businesses to prioritize science and facts when tackling critical global issues.
September 21, 2020
Leaf Traders Report Losses in Zimbabwe

Photo: Taco Tuinstra
Several tobacco merchants have seen losses estimated at $20 million by some industry players due to lower than expected output and side marketing, reports The Herald, citing the Tobacco Industry and Marketing Board (TIMB).

Due to drought, there was a 29 percent drop in crop production to 179 million kg from 252 million kg last year. This year’s crop projection was 233 million kg.

Andrew Matibiri, TIMB CEO, said that side marketing is “rampant;” about 80 percent of tobacco farmers in the country are financed under contract schemes. “Side marketing takes place when parties to the contract violate the agreement, either when a farmer chooses to sell to other merchants or when a company buys from farmers it has not contracted,” according to the Herald. This practice almost caused the cotton industry to collapse.

Many tobacco farmers cannot borrow from banks to finance their operations, so they go into contract arrangements where merchants finance the farmers and then recover their money from the crop proceeds. Due to travel restrictions to stop the spread of the coronavirus, side marketing was more prevalent, and some merchants took advantage of that by buying directly from farmers.
September 21, 2020