Tag: Featured

Stories featured at the top of tobaccoreporter.com

Court Ordered to Reconsider Immunity in ‘Dalligate’

Photo: Csaba Deli | Dreamstime.com
Europe’s top court on June 18 sent back to a lower court a dispute over immunity in a political scandal involving Swedish smokeless tobacco and millions of dollars in bribes, reports Court House News Service.
The European Court of Justice (EJC) found that a lower court erred in its decision to side with the former head of the European Union’s anti-fraud office, Giovanni Kessler, whose immunity from prosecution had been rescinded by the European Commission following allegations of illegal wiretapping.
The case dates from 2012, when Maltese politician John Dalli either resigned from or was forced out of his post as the European commissioner for health and consumer policy following allegations of bribery.
An investigation by the EU anti-fraud office OLAF found that an associate of Dalli, Silvio Zammit had demanded €60 million ($67 million) from Swedish Match to lift a ban on snus, which is legal in Sweden but outlawed in other EU member states.
Dalli denied he had any knowledge of the bribe. He brought several complaints about his resignation controversy to the court in 2015, which he all lost.
During the OLAF probe, investigators allegedly listened in to a conversation with a witness in the investigation. The information wasn’t used in the investigation, but the actions would be a violation of Belgian wiretapping laws.
The case now returns to the General Court for another decision.
June 22, 2020
Australia Extends Nicotine Vape Ban

Photo: Haiberliu from Pixabay
E-cigarettes containing nicotine will remain illegal in Australia for at least another year, reports The Daily Mail.
The federal government is extending a ban on the importation of such products unless prescribed by a doctor.
The ban will remain in place for 12 months to allow for public consultation on the regulation of nicotine products by the Therapeutic Goods Administration.
Under the ban, Australians would still be able to vape nicotine if their doctor provides a prescription.
They would get their e-cigarettes or refills via a permission granted by the health department to a doctor or medical supplier who would be able to import the goods using a courier service or by cargo service.
The goods cannot be imported through international mail.
The Australian Medical Association (AMA) welcomed the decision, saying that vaping is not a healthy alternative to smoking.
“Nicotine is a highly addictive substance and there is no level of tobacco use which is safe,” AMA Vice President Chris Zappala said.
June 22, 2020
KPMG: EU Illicit Cigarette Market at Record Low
Photo: Tobacco Reporter archive
The European market for illicit cigarettes reached a record low in 2019, even as consumption of counterfeits continues to grow, according to a KPMG study commissioned by Philip Morris International (PMI).
In 2019, EU consumers purchased 38.9 billion illicit cigarettes—the lowest number since the KPMG study first took place in 2006. The figure represents represented 7.9 percent of total EU cigarette consumption, 0.7 percentage points less than in the previous year.
Despite the overall decline of illicit cigarette consumption, which continued for the seventh consecutive year, the consumption of counterfeit cigarettes continued to grow, reaching 7.6 billion, a 38.3 percent increase compared to 2018 and the highest level recorded to date.
“The continued decline of illicit tobacco trade in the EU is a positive development and reinforces the importance of supply chain control measures, strict enforcement, and collaboration in combating this issue,” said Alvise Giustiniani, vice president of illicit trade prevention at PMI.
“We must remain focused on these collective efforts, as there continue to be worrying trends like the increase of counterfeit cigarettes and the persisting problem of illicit whites. The first ever EU-wide tracking and tracing system that was introduced last year under the European Tobacco Products Directive is an important tool for law enforcement and one that we should continue to enhance through close collaboration and information-sharing to remain highly vigilant on emerging risks.”

Graphic: KPMG
According to PMI, illicit trade undermines efforts to reduce smoking prevalence and makes unregulated tobacco products easily accessible. “For PMI to deliver a smoke-free future and enable millions of people who would otherwise continue to smoke to switch to better alternatives to cigarettes, it’s essential to eliminate illicit tobacco trade wherever it exists,” the company wrote in a statement.
Interviews with law enforcement conducted by KPMG as part of the study indicate that the manufacture of illicit whites and counterfeit cigarettes in illegal factories located in the EU is increasing. Insights from law enforcement also refer to emerging organized crime groups that specialize in the smuggling and sale of illicit raw tobacco.
Other report findings reveal that:
Counterfeit cigarettes represent 19.5 percent of total illicit cigarette consumption. Compared to 2018, the biggest increases in counterfeit consumption occurred in the U.K. (by 137 percent, to 2.1 billion cigarettes) and France (by 82 percent, to 840 million cigarettes).
Illicit whites continue to be a major element of illicit cigarette consumption, representing 35.6 percent of illicit consumption in the EU, or 13.8 billion cigarettes, up from 29.8 percent in 2018.
For the first time since the research began in 2006, counterfeit cigarettes and illicit whites represent more than 50 percent of total illicit cigarette consumption in the EU.
The countries with the largest volumes of illicit cigarette consumption in the EU were France, with 7.2 billion illicit cigarettes, and the U.K., with 5.5 billion illicit cigarettes.
The highest shares of illicit cigarette consumption were found in Greece (22.4 percent), Lithuania (17.7 percent), and Ireland (17.5 percent). Compared to 2018, both Greece and Ireland saw a declining trend in illicit cigarette consumption, while Lithuania marked a slight increase.
Illicit flows from identifiable markets outside the EU, such as Ukraine and Belarus, continued to decline. However, illicit products reportedly originated from within the EU—and destined to another EU country—increased in 2019.
June 19, 2020
BAT May Move Rovinj Factory Out of Croatia

Photo: TDR
British American Tobacco (BAT) might relocate its Kanfanar tobacco factory in Croatia to another country, Croatian media reported.
A move could cause 500 employees to lose their jobs and would leave the Istrian peninsula without one of its industrial symbols.
The Kanfanar factory produces some 12 billion cigarettes per year. Its annual production capacity is 20 billion units.
BAT acquired the cigarette factory in 2015 when it took over local tobacco producer Tvornica Duhana Rovinj.
June 18, 2020
Karnataka Surpasses Tobacco Cultivation Ceiling

Photo: Tobacco Reporter archive
Tobacco growers in Karnataka, India, sold 106 million kg of leaf this season—6 million kg above the officially sanctioned 100 million kg for 2020, reports The Hindu.
Tobacco sales in the state were suspended in March due to the coronavirus lockdown and resumed on May 20. Auctions concluded this week across the four platforms in Mysuru.
To prevent overproduction, the Tobacco Board of India each year declares a maximum crop size. Excess cultivation is penalized with a fine of INR2 ($0.03) per kg and 7.5 percent of the sales’ proceeds. If the volume of excess tobacco exceeds 10 percent of the authorized crop, the penalty increases to 15 percent of the sale proceeds.
Javare Gowda, president of Karnataka VFC Tobacco Growers’ Federation, said this year’s average price of tobacco was INR10 less than last year’s INR136 per kg.
Anticipating a decline in demand due to the Covid-19 crisis, the Tobacco Board has lowered the size of next year’s authorized crop to 88 million kg from 99 million kg.
Referring to the collapse of tobacco prices in neighboring Andhra Pradesh—where farmers have been burning their bales to protest low auction prices—Gowda urged Karnataka tobacco growers to heed the limits set by the board.
June 18, 2020
African American Group Sues FDA For Inaction on Menthol

Photo: Miriam Doerr | Dreamstime.com
The African American Tobacco Control Leadership Council (AATCLC) and Action on Smoking and Health (ASH) are suing the U.S. Food and Drug Administration (FDA) for alleged inaction on menthol.
The plaintiffs have asked the court to compel the FDA to act on its own conclusion that banning menthol from tobacco products would benefit the public health.
The 2009 Family Smoking Prevention and Tobacco Control Act banned flavors in cigarettes but excluded menthol, subject to further research. In 2011, the FDA’s advisory committee concluded that the “Removal of menthol cigarettes from the marketplace would benefit public health in the United States.”
Despite this conclusion, and several statements of support in the interim, the FDA has not begun the rulemaking process of removing menthol from combustible cigarettes. The plaintiffs are asking the court to direct the FDA to act.
According to the AATCLC and ASH, smoking-related illnesses are the No. 1 cause of death in the African American community, and 85 percent of African American smokers consume menthol cigarettes.
“By continuing to delay, the FDA and the U.S. government are failing to protect the health of U.S. citizens, particularly African Americans, and the U.S. is also falling behind the global trend as countries around the world are increasingly banning menthol,” said Kelsey Romeo-Stuppy, managing attorney at ASH.
On May 20, the European Union banned menthol cigarettes.
“Our nation finds itself at a moment in time when action to eradicate systemic inequities and racism is crucial to fighting injustice, and this case is a perfect example of action which will elicit positive change,” said ASH in a statement.
Read the full complaint here.
June 18, 2020
Risk Assessment Determined by Questioning

Photo: 104691896 | © Milkos | Dreamstime.com
The share of people who believe e-cigarettes are equally harmful or more harmful than traditional cigarettes depends on how the question is asked, according to new research published in Tobacco Control.
Tobacco companies often claim that a large proportion of the population perceives potential modified risk tobacco products as equally or more harmful than cigarettes, and argue misperceptions need to be corrected using modified risk claims.
However, the studies they cite predominantly use one specific measurement of comparative risk, according to the researchers.

Image: Tobacco Control
The authors studied the way questions were posed in the 2017 Tobacco Products and Risk Perceptions Survey. When asked directly to compare harms of e-cigarettes and cigarettes, 33.9 percent of participants identified e-cigarettes as less harmful than cigarettes, 36.4 percent reported equal harm, 4.3 percent said e-cigarettes were more harmful and 25.3 percent said, “I don’t know.”
When asked indirectly, however, 42.1 percent identified e-cigarettes as less harmful than cigarettes, 23.8 percent said they were of equal harm, 7.1 percent perceived e-cigarettes to be more harmful and 27.1 percent did not know.
The authors say researchers should use both direct and indirect risk questions when assessing the public’s perceptions of harms associated with novel tobacco products.
June 18, 2020
Emkon Files for Bankruptcy

Photo: Tobacco Reporter archive
German tobacco equipment manufacturer Emkon Systemtechnik Projektmanagement has filed for bankruptcy, according to a German press release issued by the liquidator company.
An internationally operating manufacturer of packaging machinery for the tobacco, food and nonfood cosmetics, hygiene and pharmaceutical industries, Emkon was already facing difficulties in 2019. The effects of the Covid-19 pandemic have led to a further slump in sales, which the company couldn’t compensate for anymore.
Currently, the liquidator is restructuring the company. Emkon will continue operations and its approximately 100 employees will be paid their salaries at least until the end of July.
The restructuring expert is cautiously optimistic that the insolvency proceedings will rehabilitate the company.
June 17, 2020
Marketing Authorization Requested for Leap

Photo: Timothy Donahue
E-Alternative Solutions (EAS) has submitted premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration (FDA) seeking authorization for the marketing and sale of its portfolio of Leap and Leap Go vapor products.
“We are pleased to take this important step in demonstrating our commitment to the vapor industry, retailers and adult smokers seeking an alternative to combustible cigarette smoking with our Leap and Leap Go vapor products,” said Jacopo D’Alessandris, president and CEO of EAS.
“At EAS, we have always held ourselves to high standards, from supplying adult consumers with products they can trust to consistently following ethical marketing practices. We are confident in the strong merits of our PMTAs and want to thank our compliance and research teams for developing and delivering thorough submissions.”
According to EAS, the PMTAs plays support the proposition that Leap and Leap Go vapor products are appropriate for the protection of public health. “The collective 75,000-plus-page PMTA submissions for Leap and Leap Go are the result of months of hard work and investigation that included an assessment of the stability of the products over time, toxicological formula reviews, toxicology testing, an assessment of abuse liability, label comprehension studies and behavioral studies,” the company wrote in a statement.
In addition, EAS undertook an extensive review of available literature on vapor products related to health effects, behavioral factors and toxicological end points. Further, an exacting risk assessment was conducted across many areas of potential risk for Leap and Leap Go products.
“Our PMTA submissions provide a robust analysis of the Leap and Leap Go products that will enable [the] FDA to conclude these products are appropriate for the protection of public health,” said Chris Howard, vice president, general counsel and chief compliance officer at EAS. “The PMTA process sets a high bar and holds companies accountable, ensuring vapor product manufacturers follow the rules and act in good faith. Looking ahead, a robust collaboration with [the] FDA will help build a strong future for both the vapor industry and adult consumers.”
June 17, 2020
Respira to Submit Nebulizer for FDA Approval

Photo: Respira Technologies
Respira Technologies plans to submit an inhaler device to the U.S. Food and Drug Administration by late 2021 for authorization as nicotine-replacement therapy.
The company aims to disrupt a $618 billion market dominated by decades-old gums and patches from pharmaceutical companies as well as tobacco companies’ electronic nicotine-delivery devices with a nebulizer that converts nicotine to an aerosol.
Based in West Hollywood, California, USA, Respira Technologies says that the Covid-19 pandemic has sparked new interest in quitting, and today’s users of vapor devices and e-cigarettes need updated cessation products.
“The reality is we have folks who are addicted to nicotine who never tried combustible products before,” Respira CEO Mario Danek told Bloomberg Technology, referring to tobacco products that are burned like cigarettes and cigars.
“They’re used to sleeker products, and we have that design.”
June 17, 2020