Tag: Featured

Stories featured at the top of tobaccoreporter.com

Swisher International Becomes Swisher

Photo: Swisher
Swisher International will change its corporate identity to Swisher, signifying the expansion of Swisher’s vision, offerings and focus on adult consumer lifestyle.
“While Swisher has always been anchored around its loyal adult consumers, partners and employees, the company is working to build a bold future centered on creativity and innovation,” the company wrote in a press note.
John Miller
“We have truly seen an evolution in the tastes of adult consumers, including the preference for lifestyle products within the tobacco category and beyond,” said John Miller, president of Swisher. “We are poised to explore and innovate in new categories while also preserving the legacies and strengths of our existing product portfolios.”
Best known for its Swisher Sweets cigars and classic tobacco brands such as Optimo, Goodies, King Edward and Mail Pouch, Swisher has in recent years expanded its offerings with Drew Estate’s premium cigars, Hempire hemp rolling papers and Rogue’s portfolio of nicotine-on-demand products.
This strategic approach expands Swisher’s capability to address shifting adult consumer preferences while continuing to focus on success in its core businesses, according to the company.
“Swisher’s five strategic businesses—Swisher Sweets Cigar Company (Large & Little/Filtered Cigars); Fat Lip Brands (Smokeless); Drew Estate (Premium Cigars); Hempire (Hemp Products); and Rogue Holdings (Modern Oral Nicotine)—provide category expertise, product knowledge and a focused approach under a renewed purpose for the company,” the company stated.
August 31, 2020
Haste Urged With New Health Warnings

Photo: Taco Tuinstra
Several medical and health organizations have urged Indonesia’s Health Ministry to accelerate its cigarette package graphic health warning revisions to Government Regulation No 109/2012. The groups noted that the draft revision began in May 2018 and should have been completed in a year’s time. The Coordinating Human Development and Cultural Affairs Ministry has also asked the ministry to review the regulations on online cigarette advertising and controlling vapor product consumption.
Tubagus Haryo Karbyanto of the National Commission on Tobacco Control (NCTC) said, “The slow revision process shows the government’s lack of awareness about the urgency of controlling high cigarette consumption in Indonesia. The Health Minister should immediately complete his homework.”
Aru Sudoyo of the Indonesian Cancer Foundation noted the nation’s high incidence of lung cancer among men (at 19.4 cases per 100,000), whole Indonesian Teachers Association chairman Unifah Rosidi said, “The Health Ministry does not seem to take the situation seriously while our children have very [poor knowledge] on the dangers of smoking.” Indonesian Heart Foundation chairman Esti Nurjadin said that the foundation had sent a letter urging President Joko Widodo to push for the revised regulation.
August 31, 2020
California Governor Signs Flavor Ban

California Governor Gavin Newsom on Aug. 28 signed legislation that will prohibit the sale of flavored tobacco and vapor products in the state beginning Jan 1, 2021. The flavored ban includes all flavors including menthol. The legislation does not make it illegal for someone to purchase, possess or use flavored tobacco or vapor products. The bill contains a provision that would impose a $250 fine for each violation. California will become the second state to prohibit flavored tobacco and vapor products, following Massachusetts.
“I have been very expressive in terms of my absolute condemnation of this tobacco industry that continues to find ways to target our youth,” said Newsom in a press conference just before signing the bill. “It will be a point of deep pride and personal privilege, as a father of four and as someone who has had many, many family members die at the hands of the tobacco industry, to sign that bill.”
Vapor Technology executive director Tony Abboud called the new law “bad policy” and said, “As California’s economy continues to face Covid-related challenges, the last thing its state leaders should be doing is driving people back to cigarettes, shuttering small businesses and slashing jobs.”
August 31, 2020
U.S. Modern Oral Sales up in August

Photo: Swedish Match
According to a tobacco analysis report from New York-based Cowen, based on Nielsen data, modern oral dollar sales were up 165.6 percent year to year.for the four weeks ending on Aug 8, compared to 179.7 percent in the last 12 weeks. The report added that volumes were up 216.8 percent year to year for the four-week period and 238.6 percent compared to last year for the last 12 weeks.
The top-selling modern oral brand is Swedish Match’s Zyn smokeless nicotine pouches, up 6.4 percent in dollar sales and 1.1 percent in volume share, followed by Altria’s On and R.J. Reynolds Vapor Co.’s Velo modern oral brands.
The report also noted that cigarette volume was down 2.1 percent compared to last year for the four weeks ending on Aug 8, while vapor product sales fell by 15.9 percent.
As reported in Tobacco Reporter‘s July issue, nicotine pouches are starting to catch on in a variety of markets.
August 31, 2020
New App Helps Consumers Spot Frauds

Photo: Marius Berthelsen from Pixabay
The United Arab Emirates’ Federal Tax Authority (FTA) recently launched an smart application designed to help consumers detect uncertified tobacco products by scanning the digital tax stamps placed on cigarette packages and tobacco products included in the Marking Tobacco and Tobacco Products Scheme, which went into effect at the beginning of 2019.
The application also aims to ensure that these products meet the standard specifications, are not smuggled, and have been subjected to tax. The app is part of the FTA’s continuing efforts to protect consumers from commercial fraud and combat tax evasion utilizing the latest technologies.
“The ‘FTA DTS’ smart application is one of the effective tools that support the ‘Marking Tobacco and Tobacco Products Scheme,’ which came into effect at the beginning of 2019 to combat tax evasion, protect public health and reduce the risks to consumers from the inferior products entering local markets,” said Khalid Ali Al Bustani, director general of the FTA.
“The FTA, through the new application, will offer consumers the opportunity to contribute to the control efforts aimed at protecting the markets from commercial fraud and inferior products, protecting public health, preserving the environment, promoting the concept of community partnership and eliminating negative practices in local markets.”
The FTA intends to extend its digital tax stamps requirement to water pipe tobacco and electrically heated cigarettes in 2021.
August 28, 2020
Packaging Market Poised for Growth

Photo: Tobacco Reporter archive
The value of the global market for tobacco packaging is estimated to reach $16.5 billion by 2027, representing a compound annual growth rate (CAGR) of 1.8 percent, according to a recent report.
Paper is projected to record a 2.2 percent CAGR and reach $4.5 billion by the end of the analysis period. The report estimates the value of the U.S. tobacco packaging market at $4 billion for 2020. China’s tobacco packaging market is forecast to reach $3.2 billion by 2027, representing a CAGR of 3.6 percent.
The tobacco packaging markets of Japan and Canada are forecast to grow at 0.2 percent and 1.3 percent, respectively, over the 2020–2027 period. Within Europe, Germany is forecast to grow at approximately 0.7 percent CAGR.
August 28, 2020
Strong Quarter for Scandinavian Tobacco

Photo: STG
Scandinavian Tobacco Group (STG) delivered better-than-expected results with growth in net sales, earnings and free cash flow before acquisitions. The results were driven by increased consumption of handmade cigars and a strong volume growth in the U.S. online business.
Net sales grew organically by 4.6 percent to DKK2.1 billion ($335.7 million). EBITDA before special items was DKK489 million after 19.1 percent organic growth. The EBITDA margin was 23.3 percent. Agio Cigars, which was acquired on January 2, 2020, contributed as planned.
In the first 6 months of 2020, net sales grew 4.9 percent organically to DKK3.8 billion, and EBITDA before special items grew 21 percent organically to DKK815 million.
The negative impact of the Covid-19 pandemic on STG’s business has been less profound than the company anticipated earlier in the year. According to STG, tobacco consumption across markets and categories has displayed significant resilience and increased consumption of handmade cigars brought on by the change in consumer behavior in the U.S. is likely to continue for the rest of the year.
Niels Frederiksen
While visibility around the financial outlook remains lower than normal and financial performance in the quarter was positively impacted by phasing in certain markets, the group raised its 2020 full-year guidance on Aug. 14 based on the year-to-date numbers, a strong performance in the month of July, a successful initial integration of Agio Cigars and assuming no material disruptions to the group’s supply-chain.
“Our strong performance in the quarter is based on an overall increased consumption of handmade cigars in the U.S. as more people work from home and by the skills and hard work of our employees around the world who have been working diligently to mitigate the impacts of the pandemic and keep the business moving forward,” said STG CEO Niels Frederiksen in a press release. “Additionally, a successful initial integration of Agio Cigars and the continued execution of ‘Fueling the Growth’ are also positively affecting our cost efficiency in the quarter.”
August 28, 2020
Vaper advocates warn against restricting flavor

Photo: Duh84bk – Dreamstime.com
End Smoking NZ group has urged the government of New Zealand to curtail legislation set to impede vapor product sales.
The government aims to restrict vapor product flavors to three varieties—mint, menthol and tobacco. End Smoking NZ fears the rule will drive people who have used vapor products to quit smoking back to cigarettes.
“This rapid decline in cigarette sales shows vaping products are clearly working,” said Ends Smoking NZ in statement. “However, the government’s over-regulation of flavors will mean cigarette sales are set to get a boost. No wonder tobacco companies are welcoming the flavor restrictions as they will simply help preserve traditional tobacco’s longevity.”
In 2019, cigarette sales totaled 2.13 billion pieces in New Zealand.
“The success of vaping, and the huge dent it has made on cigarette sales, is due to the accessibility and appeal of vaping to adult smokers,” said Ben Pryor, co-owner of Alt New Zealand and VAPO. “Adults love flavors, and those successfully transitioning from cigarettes to vaping need comparable nicotine. If you tighten the screws on both, you are simply making it harder for Kiwis to quit smoking and that’s a very poor public health outcome.”
August 28, 2020
Illicit Tobacco Factory Dismantled in Germany

Photo: Europol
Authorities have arrested 12 individuals who ran a large illegal tobacco factory in Kranenburg, Germany. The illegal factory could produce 10 million cigarettes per week.
Around 200 officers were involved in the raid. The 12 workers arrested on site were all Polish and Ukrainian nationals, aged between 28 and 59 years old. 11 million cigarettes were also seized as they were being loaded onto a lorry.
This is the fourth such illicit production facility uncovered on the German territory and undoubtedly one of the largest. The estimated tax loss to the German state revenue for the illegal production alone stands at approximately €1.5 million ($1.77 million) per week, according to Europol, which estimated that the factory had been operating since the end of 2016.
Most of the cigarettes are believed to have been destined for the black market in the United Kingdom where the retail value of cigarettes is much higher than in Germany.
The operation was launched by the German authorities based on information provided via Europol by the Polish Police Center Bureau of Investigation. Europol further supported this operation by facilitating the information exchange between the involved authorities and by analyzing the operational data to identify the main targets.
The investigation is still ongoing to try to identify potential links to other European countries.
August 27, 2020
New general manager at ATD Machinery

Koen te Lintelo (Photo: ATD Machinery)
ATD Machinery has appointed Koen te Lintelo as general manager.
Previously, te Lintelo worked at Vamed, where he was general manager for the Netherlands and country manager for Sri Lanka. Prior to that, he held managerial positions at LG Philips Displays and BrainCenter, among other firms.
“With broad knowledge of mechanical engineering, software, robotics and business processes, te Lintelo will further shape ATD Machinery’s ambition to develop partnerships with its customers from Sept. 1, 2020,” ATD Machinery said in a press release.
Te Lintolo succeeds Cas Disse, who led the company until October 2019. Over the past 10 months, the responsibilities of managing director have been carried out by the board of shareholder Highlands Beheer.
Based in Hapert, Netherlands, ATD Machinery produces cigar manufacturing machinery.
In recent years, the company has been broadening its focus to include the construction of machines for other markets. ATD Machinery has also stepped up its service provision, emphasizing upgrading, reconditioning and outsourcing activities.
August 27, 2020