Tag: Featured

Stories featured at the top of tobaccoreporter.com

  • India Specifies New Health Warnings

    India Specifies New Health Warnings

    Photo: Taco Tuinstra

    India’s Ministry of Health on July 23 issued new sets of specified health warnings with enhanced pictorial images to be printed on all tobacco products. The amended rules will be applicable from Dec. 1, 2020, and will be in force till 12 months thereafter.

    In a statement, the Health Ministry said, “All tobacco products manufactured or imported or packaged on or after Dec. 1, 2020, shall display the first set of images while the second set of images will be displayed by the tobacco products manufactured or imported or packaged on or after Dec. 1, 2021. Any person engaged directly or indirectly in the manufacture, production, supply, import or distribution of cigarettes or any tobacco products shall ensure that all tobacco product packages shall have the specified health warnings exactly as prescribed.”

    Violators risk imprisonment or fines as prescribed in Section 20 of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act of 2003.

  • Imperial Sells New Zealand Factory

    Imperial Sells New Zealand Factory

    Photo: Tobacco Reporter archive

    Imperial Tobacco announced that it has sold its Petone (New Zealand) production facility to a real estate developer and will discontinue its operations at the facility by
    Sept. 30. In Feb. it was reported that the factory’s closure would mean the loss of 122 jobs.

    The Petone plant predominantly supplies Imperial Tobacco’s products to the Australasian market and is the company’s only factory in New Zealand or Australia.

    Located in a popular suburb, the site measures 2.25-hectare and includes a warehouse along with manufacturing and office buildings

    The site had been an important part of the Petone economy for around 90 years. W.D and H.O Wills Limited started manufacturing cigarettes in suburb around 1930, after establishing their business in Wellington in 1919 and needing to expand.

    Imperial Tobacco had owned the site since the late-1990s

    All production at the facility will be taken up by an Imperial facility in Taiwan.

  • Curbing Vapor and Hookah

    Curbing Vapor and Hookah

    Photo: Demerzel21 | Dreamstime.com

    Russian lawmakers have adopted a bill restricting the use of electronic cigarettes and hookahs.

    According to a statement of the lawmaking authority, the document sets restrictions on the use of electronic nicotine delivery systems and hookahs inside certain territories, premises and objects; issues requirements for demonstration of electronic smoking articles in audiovisual works for minors and adults.

    Moreover, the document restricts the sale of vapor products and bans their sale to minors and involvement of children in the use of them, according to a Russian state information agency.

    There is also a proposal to introduce administrative fines for violations of the imposed restrictions.

  • Support for Pyxus Reorganization Plan

    Support for Pyxus Reorganization Plan

    Photo: Pyxus International

    Creditors have approved Pyxus International’s plan for reorganization, the agricultural company announced today.  

    Of those that submitted ballots, holders of 100 percent of first lien notes (holding over $266 million of principal) and over 99 percent of the second lien notes (holding over $524 million of principal) voted in favor of the Prepackaged Plan.

    In addition, on July 22, 2020, the Bankruptcy Court presiding over the company’s Chapter 11 cases approved the company’s entry into a commitment letter for a $75 million revolving credit facility to be provided by Sound Point Capital upon the effective date of the prepackaged plan, subject to satisfaction or waiver of certain conditions.

    “The level of support from our first lien and second lien noteholders in favor of the Prepackaged Plan, and the commitment from Sound Point to finance the company’s go-forward working capital needs, reflects their collective confidence in our proposed restructuring transaction and future business strategy,” said Pieter Sikkel, Pyxus’ president and CEO. “The company looks forward to working with its creditors and its other constituents to complete its restructuring process and emerge from the Chapter 11 in the near term.”

    The hearing to consider approval of the prepackaged plan is scheduled for August 18, 2020 at 9:30 a.m. ET.

     

  • Cigar Makers and FDA Meet About Rules

    Cigar Makers and FDA Meet About Rules

    Photo: Tobacco Reporter archive

    Attorneys representing U.S. cigar makers met with the Food and Drug Administration (FDA) to present arguments as to whether part or all of FDA’s deeming regulations should be thrown out or modified, reports Halfwheel.

    The two-hour meeting, which took place via a videoconference, primarily concerned the substantial equivalence process, is part of the ongoing Cigar Association of America et al. v. United States Food and Drug Administration et al. case.

    In previous rulings, Judge Amit P. Mehta of the U.S. District Court for the District of Columbia removed the requirements for warning labels on premium cigars, while siding with the FDA on other issues.

    On the subject of extending the Sept. 9 submission date once again, the FDA said that it would not request a further extension while Department of Justice attorney Garrett Cole noted that if an extension did occur, it would be a two-month extension.

  • Dissolution of Burley Association Debated

    Dissolution of Burley Association Debated

    Photo: John Lambeth from Pixabay

    Members of the Burley Tobacco Growers Cooperative Association are working towards a proposal to dissolve the organization that would lead to cash payouts for thousands of burley growers in Kentucky.

    Under the proposal deal, the co-op would liquidate its investments and sell its property, which includes four million pounds of tobacco and the headquarters building located in Lexington, Kentucky. Lawyers working on the proposal said that at least $20 million would be available to growers after debts, costs and attorney fees have been settled.

    The money would be distributed equally to the 3,200-3,500 growers who were members of the cooperative from the 2015 crop year through the 2019 year. If there is $20 million available and the final membership class is 3,200 growers, the cash payment would be $6,250 to each grower.

    The proposal also will allocate $1.5 million towards a new organization that would advocate the interests of tobacco growers.

    Fayette Circuit Judge Julie M. Goodman has been assigned to approve the settlement and has scheduled a hearing July 29 to clarify issues in the proposal. If approved, the payment would be doled out in several parts with the first check to be sent by the end of the year.

  • PMI Quarterly Results ‘Above Expectations’

    PMI Quarterly Results ‘Above Expectations’

    Photo: Taco Tuinstra

    Philip Morris International (PMI) has released its second-quarter results and reinstated its 2020 forecast.
     
    Diluted earnings per share were down by 16.1 percent, and net revenues were down by 13.6 percent. Operating income was down by 14.3 percent.
     
    Market share for heated-tobacco units in IQOS markets rose by 1.8 points to 6.3 percent.
     
    “Despite a very challenging quarter due to the pandemic, we delivered results above our previously communicated expectations for both net revenues and reported diluted EPS,” said Andre Calantzopoulos, PMI’s chief executive officer.
     
    “This primarily reflected favorable sequential performance in June, with a strong industry volume recovery—notably in the higher margin EU region—and substantial IQOS user acquisition growth as well as the benefit of certain nonunderlying factors, some of which we expect to reverse in the third quarter.”
     
    PMI reinstated its 2020 full-year forecast after withdrawing it in April due to uncertainty surrounding the Covid-19 pandemic. The “forecast represents a projected increase of approximately 2 percent to 5 percent versus pro forma adjusted diluted earnings per share of $5.13 in 2019,” according to PMI.

  • IMS Partners With Reifenhauser

    IMS Partners With Reifenhauser

    Photo: Goebel

    IMS Technologies has partnered with Reifenhauser India Marketing Private Limited to reinforce its presence in the Indian market.
     
    “Considering the rapid growth of the converting business in India, it is necessary for the group to further strengthen its presence in the country and to refine its market penetration strategy. Thanks to this partnership, we will be able to improve our support to the existing customers and to approach the new ones more effectively,” said Marino Ferrarese, group sales and marketing director.
     
    Starting in July 2020, Reifenhauser India Marketing Private Limited will represent Goebel IMS. Laem IMS and Rotomac brands will also be available on the market.
     
    “IMS Technologies with its brands Goebel IMS, Laem IMS and Rotomac represents state-of-the-art technologies in the slitting, rewinding and packaging fields. We are very proud to be their representatives in the Indian market,” said Manish Mehta, founder of Reifenhauser India Marketing Private Limited.

  • Ten Companies Told to Remove Their Products

    Ten Companies Told to Remove Their Products

    Photo: Jhvephotos | Dreamstime.com

    The U.S. Food and Drug Administration (FDA) has issued warning letters notifying 10 companies, including Cool Clouds Distribution (doing business as Puff Bar), to remove their flavored disposable e-cigarettes and youth-appealing e-liquid products from the market because they do not have the required premarket authorization.

    These new actions are part of the FDA’s ongoing, aggressive effort to act against illegally marketed tobacco products amid the public health crisis of youth e-cigarette use in America. The agency is particularly concerned about the appeal of flavored, disposable e-cigarettes to youth and continues to monitor all available data.

    “The FDA continues to prioritize enforcement against e-cigarette products, specifically those most appealing and accessible to youth,” said FDA Commissioner Stephen M. Hahn. “We are concerned about the popularity of these products among youth and want to make clear to all tobacco product manufacturers and retailers that, even during the ongoing pandemic, the FDA is keeping a close watch on the marketplace and will hold companies accountable.”

    “Despite suspending in-person inspection activities—such as retail compliance checks and vape shop inspections—due to the COVID-19 pandemic, our enforcement against unauthorized e-cigarette products has endured,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products. “These warning letters are the result of ongoing internet monitoring for violations of tobacco laws and regulations.”

    Three firms are receiving warning letters for illegally marketing disposable e-cigarettes—Puff Bar, HQD Tech USA and Myle Vape. The FDA’s review of the companies’ websites revealed that each firm is selling or distributing unauthorized tobacco products that were first introduced or modified after Aug. 8, 2016—the effective date of the deeming rule that extended the FDA’s authority to all tobacco products.

    Any new tobacco product not in compliance with the premarket requirements of the Federal Food, Drug and Cosmetic (FD&C) Act is adulterated and misbranded and may not be marketed without FDA authorization. Puff Bar and HQD Tech USA were also cited for an additional violation for marketing their products as modified risk tobacco products without an FDA order in effect that permits such marketing.

    Additionally, FDA issued seven other warning letters to the following firms: Eleaf USA, Vape Deal, Majestic Vapor, E Cigarette Empire, Ohm City Vapes, Breazy and Hina Singh Enterprises (doing business as Just Eliquids Distro), who sell or distribute unauthorized electronic nicotine delivery system (ENDS) products targeted to youth or likely to promote use by youth.

    These firms were cited for marketing unauthorized e-liquids that imitate packaging for food products that often are marketed and appeal to youth, such as Cinnamon Toast Crunch cereal, Twinkies, Cherry Coke and popcorn, or feature cartoon characters.

    The FDA has requested responses from each firm within 15 working days detailing how each company intends to address the agency’s concerns, including the dates on which each firm discontinued the sale and/or distribution of these tobacco products, and its plans for maintaining compliance. Failure to correct violations may result in further action such as a civil money penalty complaint, seizure or injunction. In addition, misbranded or adulterated products imported into the U.S. are subject to detention and refusal of admission.

    The FDA’s actions during the COVID-19 pandemic also include a recent warning letter to e-liquid manufacturer StemStix for violations of the FD&C Act, including marketing new tobacco products without authorization, marketing tobacco products with false and misleading advertising and marketing unauthorized modified risk tobacco products.

    Additionally, last month the agency issued letters to seven tobacco product manufacturers requesting information to help the FDA examine whether certain tobacco products were first marketed after the deeming rule’s effective date and therefore not subject to FDA’s policy on deferred enforcement of the premarket requirements for certain deemed products. Over the past four months, the agency has also refused admission into the U.S. of at least 74 entries of disposable ENDS products for violations of the Act.   

  • Honduras Orders Cigar Factories to Close

    Honduras Orders Cigar Factories to Close

    Photo courtesy of Sebastian Zimmel

    The Honduran government has ordered the closure of cigar factories as the number of Covid-19 cases in the area spikes.
     
    The city of Danli and the district of El Paraiso will return to phase zero as of Wednesday, July 22. This means only pharmacies, supermarkets and gas stations will remain open.
     
    The closure will reportedly last for at least 15 days.
     
    This will be the second government-mandated closure this year. The first came after Covid-19 began to hit the area—only six cases were confirmed at the time. The number of confirmed cases has now reached over 30,000, including the Honduran president. There have been 835 deaths as of Friday.