Tag: Featured

Stories featured at the top of tobaccoreporter.com

Scandinavian Tobacco Raises its Guidance

Photo: STG
Scandinavian Tobacco Group (STG) has raised its full year guidance. According to STG, the negative impact of the Covid-19 pandemic on the company’s business has been less profound than anticipated earlier in the year as tobacco consumption across markets and categories has displayed significant resilience.
“The current change in consumer behavior in the U.S. as more people work from home has resulted in a likely overall increased consumption of handmade cigars and a strong growth in the online business,” the company wrote in a statement.
“Combined with a stronger-than-anticipated resilience in sales volumes of machine-made cigars and smoking tobacco—and a continued strong internal cost focus—Scandinavian Tobacco Group can for the first six months of 2020 present 4.9 percent organic growth in net sales, 21 percent organic growth in EBITDA and a free cash flow before acquisitions of DKK547 million ($86.76 million).”
According to STG, financial performance also remains positively impacted by phasing in certain markets, which will affect the results in the second half of the year. “While visibility around the financial outlook remains lower than normal it is expected that the change in consumer behavior in the U.S. will continue for the rest of the year,” STG stated.
Based on the year-to-date numbers including a strong performance in the month of July, a successful initial integration of Agio Cigars and assuming no material disruptions to our supply-chain, the group has revised its full-year guidance as follows: EBITDA organic growth of more than 9 percent (previously: 2 percent-plus); and free cash flow before acquisitions: more than DKK1 billion (previously: about DKK850 million)
STG will announce its second-quarter results on Aug. 28, 2020.
August 14, 2020
U.S. Speaks up for Tobacco Investors

Photo: Taco Tuinstra
The American Chamber of Commerce (ACC) in Ukraine is concerned about the treatment of foreign investors in Ukraine in a dispute involving tobacco companies.
Recently, the Antimonopoly Committee of Ukraine (AMCU) fined British American Tobacco Ukraine, JTI Ukraine, Imperial Tobacco Ukraine, Philip Morris Ukraine and their distributors for alleged anticompetitive behavior.
The tobacco firms are currently appealing the decision in court but have expressed concern about the trial because they did not have full access to the evidence on which the AMCU based its allegations.
Two international tobacco companies have already submitted notifications to Ukraine to defend their rights as foreign investors in arbitration. Another two companies are considering submitting such notifications soon.
In the absence of a prompt solution to this issue through negotiations with Ukraine’s state authorities, these disputes will be considered by international bodies for resolving investment disputes, and the party to the dispute will no longer be the AMCU, but Ukraine, according to the ACC.
The ACC has cautioned that such disputes usually gain international publicity and can have a negative impact on Ukraine’s image among foreign investors.
“The American Chamber of Commerce in Ukraine urges Ukraine’s government to respond appropriately to the notice of the investment dispute with the state of Ukraine initiated by international investors from the USA, Great Britain, Switzerland and the Netherlands regarding the AMCU decision and to impartially consider the issue in compliance with Ukrainian legislation and international agreements,” the ACC wrote in a statement.
“A quick, transparent, and fair resolution of the situation will help to maintain business relations between strategic investors and the state, not to damage Ukraine’s image and investment climate, and avoid losses to the state budget.”
August 14, 2020
Illegal Factory Raided in Phnom Penh

Photo: noah4ever from Pixabay
Cambodian Police raided an illegal cigarette factory in Phnom Penh on Aug. 11 and arrested 20 staff, reports Phnom Penh Post.

Officers confiscated many popular Chinese cigarette brands, including Furong Wang, Nanjing and Shuang Xi.

Based in the capital’s Por Sen Chey district, the factory had been operating illegally for two years and employed more than 100 workers, according to a representative of the Ministry of Interior’s counter counterfeit committee.

“B.P.A Bopea Asia Co. Ltd produces many brands of cigarette for China, but we do not know which fake logos were meant for which markets,” he said.

Staff arrested for questioning included 14 Chinese, three Vietnamese and a Cambodian translator.

Cambodia Movement for Health Executive Director Mom Kong said he supported the effort to shut down the factory. He called on police to search for other illegal ones.

“We want to see law enforcement in inspecting tobacco products to enhance public health in Cambodia,” he said.
August 13, 2020
Pandemic Takes Toll on Malawi Leaf Earnings

Photo: Taco Tuinstra
Malawi has earned $160.2 million from leaf tobacco sales to date, down 17.5 percent from the $194.3 million it realized during the same period last year.

During the period under review, the country sold 105 million kg of all types of tobacco compared to 131.1 kg sold by end of week 16 last year, according to AHL Group.

Kaisi Sadala, CEO of the Tobacco Commission, attributed the decrease in revenue and volume to the Covid-19 pandemic and a decrease in output this season. The country also suffered from a U.S. ban on Malawi leaf imports following suspicions that some tobacco was produced by forced labor.

U.S. Customs and Border Protection recently cleared leaf from Universal Corp. and Alliance One International for entry, allowing those traders to import leaf from Malawi again.

Despite the challenges, Tobacco Association of Malawi Trust CEO Nixon Lita described the market as “fairly good.”

“We were expecting about 155 million kg, but I do not think we will reach that. We also noted that the auction market had a higher rejection rate, and this was a big concern to the farmers,” Lita said.

Meanwhile, the Tobacco Commission has announced that Lilongwe and Mzuzu markets would close on Aug. 28.
August 13, 2020
Lawmakers Urge Ban on E-Cigs During Pandemic

Photo: Tobacco Reporter archive
Lawmakers have called on the U.S. Food and Drug Administration (FDA) to take e-cigarettes temporarily off the market during the pandemic, citing a new study suggesting that vapers are significantly more likely to contract Covid-19.

Raja Krishnamoorthi
“If we reduce the number of vapers in America, we will reduce the unnecessary stress we are putting on our testing system,” Representative Raja Krishnamoorthi wrote in a letter sent to the FDA by the House Committee on Oversight and Reform’s Subcommittee on Economic and Consumer Policy. “People should not have to wait weeks for Covid-19 test results—removing the risk posed by vaping will help.”

Researchers at the Stanford University School of Medicine found that among young people who were tested for the coronavirus, those who vaped were five times to seven times more likely to be infected than those who did not use e-cigarettes.

The study, which was published online Aug. 11 in the Journal of Adolescent Health, is the first to examine connections between youth vaping and Covid-19 using U.S. population-based data collected during the pandemic.

“Young people may believe their age protects them from contracting the virus or that they will not experience symptoms of Covid-19, but the data show this isn’t true among those who vape,” said the study’s lead author, Shivani Mathur Gaiha.

“This study tells us pretty clearly that youth who are using vapes or are dual-using are at elevated risk, and it’s not just a small increase in risk; it’s a big one,” Gaiha said.

Remarkably, the researchers did not find a connection between Covid-19 diagnosis and smoking conventional cigarettes alone, perhaps because the prevalent pattern among youth is to use both vapor devices and traditional cigarettes. Other research has shown that nearly all nicotine-using youth vape, and some also smoke cigarettes, but very few use cigarettes only.

In addition to warning teenagers and young adults about the dangers of vaping, the researchers said they hoped their findings will prompt the FDA to further tighten regulations governing how vapor products are sold to young people.

“Now is the time,” said senior author Halpern-Felsher. “We need the FDA to hurry up and regulate these products. And we need to tell everyone: If you are a vaper, you are putting yourself at risk for Covid-19 and other lung disease.”

John Dunne
Vaping advocates expressed concern about the study.

“While we welcome any research which can assist people in staying safe during the Covid-19 pandemic, the UKVIA [U.K. Vaping Industry Association] is disappointed by the Stanford-led study, which appears to dismiss the vital harm reduction role of vaping for smokers and draws disproportionate conclusions,” said John Dunne, director at the UKVIA.

Insisting there is no scientific evidence linking smoking and vaping with Covid-19, Dunne said the UKVIA was looking forward to seeing the peer review of the Stanford study.

“It is also somewhat reckless in stating that vapers are putting themselves ‘at risk of Covid-19’ by vaping,” he said. “Vaping products are designed only for smokers and ex-smokers to help them quit conventional cigarettes, which is the most positive action someone can take to improve their health.”
August 12, 2020
Netherlands: Tobacco Prices up 20 percent

Photo: Ralf Gervink from Pixabay
Tobacco prices in the Netherlands increased by nearly one-fifth this year as the government inches toward its goal of a €10 ($11.77) pack of cigarettes, reports DutchNews.

The 2020 increase is down to two tax increases, taking the price of a pack of cigarettes to around €8.20. A further rise of €0.12 cents will take place on Jan. 1, 2021.

Smokers still account for 22 percent of the Dutch population. Some 35,000 people a year die from the effects of smoking, being overweight or problem-drinking in the Netherlands.

The government aims to reduce the share of smokers and problem drinkers to 5 percent and the share of overweight people to 38 percent by 2040.
August 12, 2020
BAT Recognized for ‘Women in Science’
British American Tobacco (BAT) has won a platinum award for its Women in Science campaign.

In February, BAT marked International Day of Women and Girls in Science by celebrating the achievements of its female scientists and shining a spotlight on their research.

The accompanying video has now been recognized by the Association of Marketing and Communication Professionals in the dotCOMM Awards, an international online competition honoring excellence in web creativity and digital communication.

Sarah Cooney
“We are delighted to have won a dotCOMM award for our Women in Science campaign,” said Sarah Cooney, a senior manager in BAT’s Science Comms team. “We know BAT has always championed women’s careers, and this award is testament to the fantastic work being carried out by our scientists here in R&D.

“They discussed their professional journeys and shared what motivated them in their careers, and I hope they have inspired others to seek an exciting career in science.

“The video was incredibly well received on social media, and initiatives like this help us to give people a better understanding of our industry, serving as tools for engagement and recruitment,” Cooney said.
August 12, 2020
Regulator Urged to Reject Flavors

Photo: Laboko – Dreamstime.com
As manufacturers of e-cigarettes and certain other tobacco products face a Sept. 9, 2020, deadline to apply to the U.S. Food and Drug Administration (FDA) to keep their products on the market, six leading public health and medical organizations are urging the FDA not to authorize the sale of any flavored products.

“The FDA should not authorize the sale of any flavored tobacco product, including e-cigarettes or e-liquids, because of the clear evidence that flavored products appeal to youth and have driven the current epidemic of e-cigarette use among youth and young adults and the lack of evidence that flavored products help smokers quit,” the groups wrote in a joint statement.

“Research shows that 97 percent of youth e-cigarette users report using a flavored product in the past month, and 70 percent say they use e-cigarettes ‘because they come in flavors I like.’ In contrast, there is no credible evidence that flavored e-cigarettes help adult smokers quit. In a report issued earlier this year, the U.S. Surgeon General concluded, ‘there is presently inadequate evidence to conclude that e-cigarettes, in general, increase smoking cessation,’” the organizations wrote.

The groups also called on the FDA to take prompt enforcement action to remove from the market products for which applications are required but are not submitted by the Sept. 9 deadline.

The organizations that issued the statement are the American Academy of Pediatrics, the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association, the Campaign for Tobacco-Free Kids and the Truth Initiative.
August 11, 2020
FDA Accepts Avail Tobacco Application

Photo: Bacho | Dreamstime
Avail Vapor has received its first premarket tobacco product application (PMTA) acceptance from the U.S. Food and Drug Administration (FDA) for its e-liquid nicotine products, reports Vapor Voice.
Blackbriar Regulatory Services led the highly strategic regulatory process for Avail’s submission. The application now moves to the substantive scientific review where the FDA will determine if Avail has scientifically proven that its nicotine vapor products are appropriate for the protection of public health.

James Xu
This is one of numerous applications that Avail plans to file prior to the Sept. 9, 2020 deadline. The products will provide a wide-ranging flavor portfolio to meet the needs of adults seeking alternative choices to combustible tobacco products.

“We started mapping out our regulatory framework and PMTAs in 2015, before nicotine vaping products became subject to the FDA’s tobacco authority,” said James Xu, chairman of Avail.

“We couldn’t be more pleased that the years of hard work, investment and dedication have gotten us to this point. Our end goal is to seek an FDA marketing order, which would allow us to continue to keep our products on the market for those adult smokers looking for alternatives to traditional tobacco products.”
August 11, 2020
KT&G Supports Downpour Victims

KT&G volunteers help restore tobacco farms in affected areas. (Photo: KT&G)
KT&G has donated KRW500 million ($420,000) to expedite the restoration process of areas affected by recent torrential rains. More than a week of downpours in South Korea has left at least 30 dead and 12 missing in landslides, floods and other incidents.
The donation was provided by Sangsang Fund, a voluntary charity system of KT&G employees. Sangsang Fund is a unique charity system where the voluntary contribution of employees is matched by KT&G every month.
“In the midst of the Covid-19 recession, the flood victims are in desperate need of help,” said KT&G President Baek Bok. “I hope that the hard work and care from the employees of KT&G would swiftly restore the damaged areas and help people return to their normal life.”
On August 6, KT&G volunteers started restoring tobacco farms in Bongyang-eup in Jecheon-si, Chungbuk. Twenty volunteers provided raw materials, cleaned flooded houses and assessed the damaged goods.
“We wanted to give a hand to the farmers who are suffering from the torrential rains,” said a KT&G official. “As a corporate citizen, KT&G would like to continue its philanthropy and to support the community.”
Previously, KT&G donated KRW500 million to those impacted economically by Covid-19
August 11, 2020