Tag: Featured

Stories featured at the top of tobaccoreporter.com

  • Environmental Leadership Recognized

    Environmental Leadership Recognized

    Photo: Evelyn Chai from Pixabay

    Altria Group’s greenhouse gas emissions reduction targets have been approved for the first time by the Science Based Targets initiative (SBTi). The Scope 1 and 2 target covering greenhouse gas emissions from Altria’s operations is consistent with reductions required to keep warming to 1.5 degrees Celsius, a goal that the latest climate science says is needed to prevent the most damaging effects of climate change. The Scope 3 target meets the criteria for ambitious value chain goals and current best practice.

    “We believe it’s important to continually work to address important social and environmental challenges,” said Jennifer Hunter, senior vice president, corporate citizenship at Altria. “This is why we’ve set a higher bar and reset our long-term goals, including achieving 100 percent renewable electricity by 2030, 100 percent water neutrality annually, and aligning our business with the most ambitious greenhouse gas emissions reduction targets designated by the SBTi.”

    In addition to SBTi approval, for the third year in a row Altria has been named to CDP’s Water A-List, among only 2 percent of disclosing global companies in 2019, and is recognized on CDP’s 2019 Climate Change survey as a global leader for engagement with suppliers on climate change.

    More than 900 companies have committed to the SBTi, and just over 400 have SBTi-approved targets. SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

    The SBTi defines and promotes best practice in science-based target setting and independently assesses companies’ targets.

    Altria’s recently released 2019 Corporate Responsibility Progress Report details the company’s continued progress on these environmental goals and on Altria’s four responsibility priorities: reducing the harm of tobacco products, including preventing underage tobacco use; marketing responsibly; managing our supply chain responsibly; and developing our employees and culture.

  • South Korea: Sales of Heated Products Likely to Edge Up

    South Korea: Sales of Heated Products Likely to Edge Up

    Photo: KT&G

    Sales of heated tobacco products in South Korea will likely edge up this year, even as the overall tobacco market is expected to decline, reports The Korea Herald, citing figures from Euromonitor International.

    According to the market intelligence company, the Korean tobacco market reached KRW17.19 trillion ($16 billion) in 2019. Of that figure, KRW1.89 trillion was spent on heat-not-burn cigarettes, making South Korea the second-largest market for such products after Japan.

    Euromonitor forecast Korea’s heating tobacco product market to reach KRW2 trillion in 2020.

    Sales of e-cigarettes are expected to drop by 80 percent to KRW16.8 billion this year in the wake of new government restrictions on the category.

    Flavored tobacco products, meanwhile, are gaining popularity in Korea. Last year, flavored products accounted for about 20 percent of South Korea’s conventional cigarette market, which is higher than in Japan (7 percent) and China (1.7 percent).

  • Turning Point Exceeds Quarterly Expectations

    Turning Point Exceeds Quarterly Expectations

    Photo: Stocksnap from Pixabay

    Turning Point Brands (TPB) announced preliminary sales results for the second quarter ended June 30, 2020, in connection with the underwritten secondary offering by certain of its stockholders of 2 million shares of TPB’s common stock. TPB plans to release its full second-quarter 2020 financial results along with updated full-year guidance on July 28, 2020.

    During the second quarter of 2020, preliminary estimates of net sales exceeded $100 million compared to net sales guidance of $81 million to $87 million provided on April 28, 2020. All segments outperformed management expectations for the second quarter of 2020.

    In the smokeless segment, the secular consumer downtrading trends that accelerated earlier in the year continued during the quarter as the Stoker’s MST line continues to build momentum and gain consumer acceptance.

    In the smoking segment, sales benefited from increased consumption, new product penetration and recently implemented growth initiatives, which offset the Covid-related supply chain disruption experienced in the MYO cigar wraps business. In the new generation segment, market share gains and new product introductions returned the segment to positive year-over-year sales growth.

    TPB announced the pricing of the previously announced underwritten public offering of 1.8 million shares of company common stock by Standard Diversified and an aggregate of 200,000 shares of company common stock by funds affiliated with Standard General (the Standard General funds) at an offering price of $23.50 per share. In addition, the Standard General funds have granted the underwriter the option to purchase up to 215,000 shares of the company’s common stock from them to cover over-allotments, which will be exercisable for two business days.

    The selling stockholders will receive all the net proceeds from the offering. The closing is expected to occur on or about July 13, subject to customary closing conditions. The shares are listed on the New York Stock Exchange under the symbol TPB.

  • FDA Accepts Premarket Applications for Leap

    FDA Accepts Premarket Applications for Leap

    E-Alternative Solutions (EAS) has received acceptance and filing letters from the U.S. Food and Drug Administration (FDA) for its Leap and Leap Go products.

    EAS is now in the substantive review phase of the premarket tobacco product application (PMTA) process. If successful, this phase will result in marketing orders from the FDA authorizing the continued marketing and sale of these products.

    “The substantive review is where our months of hard work assembling more than 100,000 pages of evidence will pay off in supporting our proposition that the Leap and Leap Go products are appropriate for the protection of public health,” said Chris Howard, vice president, general counsel and chief compliance officer at EAS.

    “We are looking forward to continued collaboration with [the] FDA in the weeks and months to come and remain optimistic that the PMTA process will result in marketing orders.”

  • Smoore Raises $918 Million in Hong Kong

    Smoore Raises $918 Million in Hong Kong

    Photo: Timonthy Donahue

    Smoore International has raised $918 million in its initial public offering (IPO) at the Hong Kong Stock Exchange, reports Reuters. The deal is the largest IPO in Hong Kong since the start of 2020.

    The Shenzhen, China-based firm offered 574 million shares, according to the company’s prospectus, and had indicated the stock would be priced between HKD9.60 ($1.24) and HKD12.40 per share.

    The largest investors were Huaneng Trust, which took $80 million worth of stock, and Prime Capital which took $50 million, according to Smoore’s prospectus.

    In 2019, Smoore reported a profit of CNY2.17 billion ($307.8 million), up from CNY733.9 million one year earlier.

    Smoore is due to start trading on the Hong Kong Stock Exchange on Friday.

  • FDA Grants IQOS Exposure Claim

    FDA Grants IQOS Exposure Claim

    Photo: PMI

    The U.S. Food and Drug Administration (FDA) on July 7 issued exposure modification orders to Philip Morris Products’ (PMP) IQOS heat-not-burn device system (holder and charger) and three Marlboro Heatstick variants.

    The FDA previously authorized the marketing of IQOS without modified risk information in April 2019 via the premarket tobacco application pathway.

    In its most recent ruling. the FDA determined that IQOS does not currently meet the standard for marketing with reduced-risk claims but can be marketed with a reduced-exposure claim.

    Specifically, the FDA is allowing the company to claim:

    • The IQOS system heats tobacco but does not burn it.
    • This significantly reduces the production of harmful and potentially harmful chemicals.
    • Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals.

    “Through the modified risk tobacco product application process, the FDA aims to ensure that information directed at consumers about reduced risk or reduced exposure from using a tobacco product is supported by scientific evidence and understandable,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products.

    “Data submitted by the company shows that marketing these particular products with the authorized information could help addicted adult smokers transition away from combusted cigarettes and reduce their exposure to harmful chemicals, but only if they completely switch.”

    In its announcement, the FDA stressed that is marketing authorization doesn’t mean the reviewed products are safe or “FDA approved.”

    The FDA’s marketing order requires PMP to conduct post-market surveillance and studies to determine the impact of these orders on consumer perception, behavior and health, and to enable the FDA to review the accuracy of the determinations upon which the orders were based.

    These post-market requirements include a rigorous toxicity study using computer models to help predict potential adverse effects in users. The orders also require the company to monitor youth awareness and use of the products to help ensure that the marketing of the MRTPs does not have unintended consequences for youth use.

    “The FDA’s decision is a historic public health milestone,” said Andre Calantzopoulos, CEO of Philip Morris International. “Many of the tens of millions of American men and women who smoke today will quit—but many won’t. Today’s decision makes it possible to inform these adults that switching completely to IQOS is a better choice than continuing to smoke. FDA determined that scientific studies show that switching completely from conventional cigarettes to IQOS reduces exposure to harmful or potentially harmful chemicals.”

    “The FDA’s decision provides an important example of how governments and public health organizations can regulate smoke-free alternatives to differentiate them from cigarettes in order to promote the public health.”

    “We’re delighted that the FDA authorized IQOS to be marketed as a modified-risk tobacco product,” said Billy Gifford, CEO of Philip Morris USA’s parent company, Altria Group, which will be marketing the product in the U.S. “This authorization gives PM USA an opportunity to communicate additional benefits of switching to IQOS and this decision is an important step for adult smokers.”

    In a note to investors, Morgan Stanley described the FDA’s order as a positive development because it provides greater flexibility for IQOS to be marketed as relatively less harmful than cigarettes.

    “The inability to make relative lower harm claims is a constraint to broader IQOS adoption in the U.S.,” wrote Morgan Stanley analyst Pamela Kaufman.

    “Over time, PM can continue to submit additional information towards a full MRTP approval. The modified exposure designation combined with pending PMTA approval for IQOS 3 should accelerate MO’s [Altria’s] U.S. expansion strategy for IQOS. The FDA’s recognition of IQOS’s benefits relative to cigarettes may also enhance IQOS’ perception with international health agencies, helping its growth prospects,” Kaufman said.

    Anti-smoking activists were less enthusiastic. In a joint statement, the Campaign for Tobacco-Free Kids, the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association and the Truth Initiative, said the FDA marketing order would put consumers at risk.

    “With today’s action, the FDA has created a real danger that kids and adults will falsely believe IQOS has been proven to present a lower health risk and that kids will be exposed to marketing that portrays IQOS, a highly addictive tobacco product, as an appealing, cool alternative to cigarettes, in much the same way as e-cigarettes,” the anti-tobacco groups wrote in their statement.

    IQOS is the first tobacco product to receive exposure modification orders and the second to be authorized as a modified risk tobacco product. In October 2019, the FDA authorized Swedish Match U.S. division’s amended MRTP applications for eight varieties of General Snus, giving the company the right to market the product as a less harmful alternative to cigarettes.

  • Court Strikes Warnings for Pipes and Cigars

    Court Strikes Warnings for Pipes and Cigars

    Photo: Tobacco Reporter archive

    A U.S. federal appeals court has ruled that the U.S. Food & Drug Administration (FDA) cannot require warning labels for cigar or pipe tobacco products, reports Halfwheel.

    In a unanimous ruling, the U.S. Court of Appeals for the District of Columbia Circuit decided in favor of the plaintiffs in a case brought by the Cigar Association of America and others against the FDA.

    Judge Gregory Katsas wrote that the FDA failed to produce evidence that the warning labels would reduce the number of smokers.

    “The Deeming Rule does not consider the impact of health warnings on smoking cessation and adoption rates,” he said. “In fact, the rule scrupulously avoids the issue, and the FDA rarely even contenders otherwise. Instead, the FDA candidly acknowledged that ‘[r]eliable evidence on the impacts of warning labels … on users of cigars [and] pipe tobacco … does not, to our knowledge, exist.’”

    Earlier this year, a U.S. District Court ruled that FDA could not require warning labels on premium cigars. The most recent decision throws out the district court ruling and modifies it to include all cigars and pipe tobacco products.

  • BAT Asks Malaysians to Tackle Black Market

    BAT Asks Malaysians to Tackle Black Market

    Photo: BAT

    British American Tobacco (BAT) has launched a campaign to draw attention to the problem of illicit cigarette sales in Malaysia, reports The New Straits Times.

    The company is inviting Malaysians to participate in a survey and to share their views on a dedicated Facebook page.

    Worldwide, Malaysia is now the country most affected by illegal cigarettes, according to Oxford Economics. Nielsen figures suggest that black market accounted for 62 percent of all domestic tobacco sales in 2019.

    Illicit cigarette sales cause the government to miss out on an estimated MYR5.3 billion ($1.24 billion) in excise tax revenues each year.

    Many Malaysians also believe that youth smoking is linked to cheap illegal cigarettes.

    BAT Malaysia managing director Jonathan Reed said the tobacco black market negatively impacts legal businesses and the lives of all Malaysians.

    “We applaud the hard work done by law enforcement agencies recently and we hope that these efforts continue to pressure the syndicates operating in this black market,” he said in a statement on July 6.

    “However, enforcement alone is not enough to address this issue.”

    BAT hopes the surveys will spark a national discussion on how illicit cigarette sales can be stopped.

  • Senate Bill Bans Online E-Cig Sales to Minors

    Senate Bill Bans Online E-Cig Sales to Minors

    Photo: lexphumirat from Pixabay

    The U.S. Senate on July 1 approved a bill to stop internet sales of vapor products to minors, reports NASC.

    Passed unanimously, the Preventing Online Sales of E-Cigarettes to Children Act seeks to close the online loophole of e-cigarette sales to minors by applying the same measures that are required when traditional cigarettes are purchased online. The House passed its version of the bill last year.

    The legislation would require online sellers of e-cigarettes to ensure the carrier verifies the age of the recipient upon delivery. It would also require online sellers to collect and remit the appropriate state and local taxes.

    These measures are already in place for cigarettes and smokeless tobacco products purchased over the internet because of the Prevent All Cigarette Trafficking (PACT) Act, which Congress enacted in 2010. E-e-cigarettes were uncommon in the marketplace when the law was passed.

    The internet is the most common retail source of e-cigarettes to minors, according to a study published in 2018 by the American Journal of Health Promotion.

    “According to a report last year, more than a quarter of all high school students and one in 10 middle school students had vaped in the previous 30 days, despite the fact that they are underage and should not have legally been able to buy e-cigarettes,” said Senator Feinstein, one of the sponsors of the Senate bill.

    “Age verification for purchasing e-cigarettes online remains practically nonexistent, and it’s time we start regulating these products at least as much as we do traditional cigarettes.”

    Last October, the House passed its version of the same bill on suspension. Given that the Senate bill is slightly different than the House version, the House will need to pass the Senate’s version before it can become law.

  • Philippines Mull Ban on Online Cigarettes Sales

    Philippines Mull Ban on Online Cigarettes Sales

    Photo: Pete Linforth from Pixabay

    The Philippine Department of Finance (DOF) wants to ban internet sales of cigarettes and alcoholic beverages.

    The proposal comes at a time when more Filipinos are using more online transactions to buy products, especially with community quarantines in place to contain the Covid-19 outbreak.

    E-commerce platforms have been offering cigarettes for sale at discounts of up to 50 percent, raising concerns about illicit trade.

    The government’s excise tax collections from alcohol and tobacco products from January to May decreased by 39 percent from with the same period last year due to restrictions on nonessential items.

    Citing data from the Bureau of Internal Revenue, Finance Undersecretary Gil Beltran said cigarette factory shipments contracted by 72 percent to 376.3 million packs in the period January-April.

    In July last year, the Philippines increased excise taxes on tobacco products and introduced a new tax on e-cigarettes. In January, President Rodrigo Duterte signed off on legislation raising the e-cigarettes taxes.

    The DOF expects the additional revenues from these taxes to reach PHP13.2 billion this year and PHO73.1 billion from 2020 to 2022.