Tag: Featured

Stories featured at the top of tobaccoreporter.com

Smoore Secures Judgment Against Counterfeiters

Photo: Shenzhen Smoore Technology
A New York federal judge recently granted Shenzhen Smoore Technology a $5.4 million default judgment and permanent injunction against more than 100 defendants accused of selling Vaporesso and Smoore’s self-branded counterfeit goods.
The default judgment is for $50,000 dollars per defendant and transfers to Smoore the frozen assets of the defaulting defendants. Smoore filed the complaint in October alleging trademark counterfeiting and infringement against defendants located in China but conducting business in the U.S. and other countries by means of their merchant storefronts on some online marketplace platforms. In the same lawsuits, Smoore settled with a significant number of defendant sellers who paid compensation for infringement and cooperated to identify their sources of supply of counterfeit products.
According to Smoore the ruling demonstrates the company’s determination to protect its intellectual property rights in the United States. “It is meaningful for protecting the development of the whole industry toward a healthy direction and providing safe and reliable vaping products for individual customers,” Smoore wrote in a statement.
Smoore has undertaken the lawsuits as part of an overall anti-counterfeiting program in the United States and elsewhere that includes cooperation with customs to seize counterfeit products and local police to arrest owners of and shut down counterfeit operations.
In the United States, Smoore is represented by the law firm Epstein Drangel, which has considerable experience in implementing and overseeing such anti-counterfeiting programs. Smoore says it plans to enforce the default judgment to collect compensation.
September 16, 2020
U.K. Study Reiterates Relative Safety of Vaping

Photo: Vaperesso
Electronic cigarettes are significantly less harmful than smoking but are not risk-free, a report from the Committee on Toxicity of Chemicals in Food, Consumer Products and the Environment (COT) has concluded.
COT, which is made up of independent experts, was commissioned to produce a report by the Department of Health and Social Care and Public Health England to review electronic nicotine delivery systems and devices that use an e-liquid that does not contain any nicotine, collectively abbreviated as E(N)NDS.
The review finds that E(N)NDS products, when produced and used appropriately, are “likely to be associated with a reduction in overall risk of adverse health effects, although the magnitude of the decrease will depend on the effect in question” when replacing cigarettes.
COT also examined the role of potential toxicity in vaping aerosols. The review again found that the “use of E(N)NDS products may be associated with a reduced risk compared with (conventional cigarettes), but this should not be taken as meaning that these products are risk-free.”
The review highlighted best practices in manufacturing and production as the way to minimize risks. COT states that “fidelity of construction, materials used, and operating capabilities” are vital considerations for devices, while for e-liquids “formulants should be derived from a reputable source, and non-standard constituents should not be included.”
The COT review also touched upon incidents of lung injury seen in the United States, confirming vitamin E acetate as “strongly linked” to the cases. COT further notes that “this substance is banned from U.K.-regulated nicotine vaping products.”
John Dunne
“Our assessment on e-cigarettes largely reinforces the scientific consensus to date on their relative safety, that while not without risk they are significantly less harmful than smoking,” said COT chair, Alan Boobis.
The vapor industry welcomed the COT’s recent publication.
“We welcome this review, as we do all contributions to the growing vaping literature, as it helps us better understand the harm reduction and public health potential of vaping,” said UKVIA director John Dunne in a statement. ““The UKVIA is heartened to see that COT confirms a likely overall risk reduction for those moving from cigarettes to vaping, as this is a cornerstone of our mission.”
September 16, 2020
Scholars Argue Against Flavor Ban

Jeff Stier
The prohibition of the legal sale of flavored e-cigarettes to adults is unsupported by science, undermined by an analysis of the available data and lacks common sense, according to Jeff Stier, senior fellow at the Taxpayers Protection Alliance, and Henri Miller, senior fellow at the Pacific Research Institute.
Writing on Pundicity, the scholars insist the promised benefits of any policy should be weighed against the known risks and possibility of unintended consequences.
Last February, the U.S. House of Representatives passed legislation that would ban the sale of flavored e-cigarettes to adults. The bill, sponsored by Representative Frank Pallone Jr., did not advance in the Senate but is likely to resurface in the next Congress, according to the Stier and Miller.
“Federal law already bans the sale of all e-cigarettes to anyone under 21, so the Pallone legislation would only change the legal status of the sale of flavored e-cigarettes to adults,” the authors wrote. “That would harm public health, because the data tell us that adult smokers can significantly reduce their health risks if they switch from smoking to vaping.”
Stier and Miller also refuted anti-flavor advocates’ concern about underage vaping. “Kids vape for lots of reasons, but the availability of flavors isn’t high among them,” they wrote.
September 16, 2020
Record Marijuana Use Among Young Adults

Photo: Rolf Hansen from Pixabay
The vaping of marijuana and nicotine among those aged 19 to 22 more than doubled between 2017 and 2019, according to the University of Michigan’s annual U.S. national Monitoring the Future (MTF) panel study.

In addition, use of marijuana in any form in 2019 among young adults ages 19 to 22 was at or near the highest levels seen over the past four decades.

Between 2017 and 2019, the percentage of adults aged 19 to 22 who vaped marijuana at least once in the past 30 days increased from 5 percent to 14 percent among full-time college students and from 8 percent to 17 percent among those not in college.

Similarly, between 2017 and 2019, the 30-day prevalence of vaping nicotine increased from 6 percent to 22 percent among college students and from 8 percent to 18 percent among adults aged 19 to 22 not in college.

“This doubling to tripling of prevalence of vaping marijuana and vaping nicotine over just two years are among the largest increases in MTF history for any substance since the study began over 40 years ago,” said John Schulenberg, principal investigator of the MTF study. “This is a worrisome trend given the health risks associated with vaping, including an increased risk of Covid-19 and the addictive properties of nicotine.”
September 16, 2020
Cannadips Hires Former Altria Executive

Maura Scott (Photo: Boldt Runners Corp.)
Boldt Runners Corp., the licensee of Cannadips CBD, a smokeless dip pouch with CBD, has appointed former tobacco executive Maura Scott as chief sales officer and chief compliance officer.
With more than two decades of experience as a business leader, in-house and outside corporate counsel, Scott brings expertise in sales and marketing strategy development and execution, along with a deep understanding of the legal and regulatory landscape.
Most recently, Scott served as vice president northeast region sales at Altria Group, where she led a team of 400 sales professionals across 13 U.S. states. In 2018, she was recognized by her peers in the convenience industry with the Top Women in Convenience “Woman of the Year” Award. Previously, Scott served as assistant general counsel at Altria where she led the sales practice group.
“I am excited to be part of the Boldt Runners team,” said Scott in a statement. “Cannadips CBD is a brand that has great potential in the marketplace for tobacco alternatives. Since its launch in 2018, it has quickly gained transaction with adult consumers and is poised to expand rapidly as the company ramps up production and distribution to more markets.”
September 16, 2020
BAT-Led Price Hike Hints at Strength U.S. Market

Photo: CarolRobert – Dreamstime.com
British American Tobacco (BAT) announced an average cigarette list price hike of $0.13 per pack, according to Goldman Sachs. The move reflects a price increase of between 2 percent and 3 percent.
According to the investment bank, it is the first time in recent history that BAT and its subsidiary, RAI, have led a price increase in the U.S. The price increase is BAT’s third this year.
Morgan Stanley said BAT’s move underscores the strength of the U.S. cigarette market. “U.S. cigarette fundamentals have been unusually strong throughout 2020, with industry volumes declining 2.5 percent in 2020 year-to-date within measured channels and MO [Altria Group] estimating the industry will decline by 2 percent to 3.5 percent year-on-year in 2020, the best performance since 2016,” the financial firm wrote in an statement.
“Unlike the last several years in which a higher rate of volume declines necessitated greater pricing, we believe manufacturers are being opportunistic in taking pricing this year given the strength of the category. BAT’s pricing decisions may also be influenced by its confidence in its U.S. brand portfolio, fundamentals outside of the U.S., and RRP [reduced-risk products] investments.”
Pricing is a critical driver of revenue and earnings growth in the tobacco industry, particularly as manufacturers realize almost three times the leverage on earnings from a point of pricing than a point of volume, according to Goldman Sachs.
The bank expects other cigarette manufacturers to follow with similar price increases soon.
“We had been expecting a price increase since several of our wholesaler contacts had informed us that they had started loading recently in anticipation of an increase,” the investment bank wrote in a note to investors.
“Given that this price increase is not effective until after 9/28, we expect more loading by the trade (both wholesalers and retailers) in the next couple of weeks, which should have a clear positive impact on Q3 volumes.”
September 15, 2020
Bosnia and Herzegovina Black Market Surges

Photo: Nenad Maric from Pixabay
The illicit trade in tobacco products has expanded significantly in Bosnia and Herzegovina over the past decade, reports The Sarajevo Times.
The legal market for tobacco products shrunk by more than 56 percent from 2010 to 2020, resulting in huge losses to the state budget.
In the first seven months of this year, the government collected BAM430 million ($261.5 million) less in tobacco taxes than it did in the same period last year. Bosnia and Herzegovina’s black tobacco market is believed to be the largest in Europe.
The Indirect Taxation Authority (ITA) of Bosnia and Herzegovina is now advocating a harmonization of tax levies to reduce the prices of legal cigarettes, which it believes will reduce the incentive to smuggle.
Meanwhile, citizens are encouraged to anonymously report suspicions of illicit tobacco trade to the ITA.
September 15, 2020
Snus Market Expected to Reach $1.7 Billion

Photo: Swedish Match
Estimated at $1.1 billion in 2020, the global market for snus is projected to reach $1.7 billion by 2027, according to a new report. This represents a compound annual growth rate (CAGR) of 6.2 percent over the period.
“Original,” one of the segments analyzed in the report, is projected to grow at a 6.4 percent CAGR to $715.6 million by the end of the analysis period. After an early analysis of the business implications of the Covid-19 pandemic and the related economic crisis, the “fruit” segment is estimated to grow at 7.2 percent CAGR for the next seven-year period. This segment currently accounts for a 19.2 percent share of the global snus market.
The snus market in the U. S. is estimated at $317.2 million in 2020. The country currently accounts for 28.9 percent of global snus sales. China’s snus market is forecast to reach an estimated market size of $309.5 million by 2027.
Other noteworthy snus markets are Japan and Canada, forecast to grow at 3.4 percent and 5.6 percent respectively from 2020 to 2027. Germany is forecast to grow at approximately 4 percent CAGR while the rest of the European market (as defined in the study) will reach $309.5 million by 2027.
September 15, 2020
Bidi Industry Protests Bangladesh Tax Hike

Photo: Tobacco Reporter archive
Bidi industry representatives have asked the government of Bangladesh to reverse a recent tax hike on bidis, citing economic hardship, reports The Dhaka Tribune. They also demanded an increase in tax on low-quality and medium-quality factory-made cigarettes, which compete with their products.

Recently, the government increased the tax on a pack of bidis by 4 percent, prompting many bidi factories to cease production.

To press their demands, bidi workers formed a human chain in front of the National Press Club on Sunday. During the event, some speakers suggested cigarette manufacturers were conspiring against the bidi industry by lobbying to keep cigarette taxes comparatively low.
September 14, 2020
PMI: Public Wants Science-Based Policies

Moira Gilchrist
Citizens around the world want governments, public authorities and private businesses to prioritize science and facts when tackling critical issues, according to a white paper prepared by Philip Morris International (PMI) with research from Provaddo.
“Science can help make significant strides in our collective efforts to address the world’s most pressing problems” said Moira Gilchrist, vice president for strategic and scientific communications at PMI.
“Unfortunately, governments and broader society have yet to embrace science at its fullest potential as this global survey shows. Ensuring facts and evidence are given greater prominence in policymaking—over ideology, politics and unsubstantiated beliefs—will help match the public’s expectations for science to sit at the heart of decisions impacting them and their future.”
Science is crucial to PMI’s ambition to deliver a smoke-free future. “With the right regulatory encouragement and support from civil society, we believe this goal can be achieved in many countries in 10 [years] to 15 years,” the company wrote in a statement.
September 14, 2020