A Ukrainian court has upheld British American Tobacco’s (BAT) appeal of a UAH450 million ($16.1 million) fine imposed by the Antimonopoly Committee of Ukraine (AMCU), reports Ukraine Open for Business.
BAT welcomed the decision, saying it sent a strong positive signal to investors from around the world.
In October 2019, the AMCU imposed a UAH6.5 billion fine on four international tobacco companies and Tedis Ukraine for alleged anti-competitive behavior. With 45,000 retail points and 2,300 employees, Tedis Ukraine is one of the largest distribution companies in Ukraine.
The agency said the tobacco companies and Tedis had conspired to keep new businesses from entering the market. However, critics said the AMCU helped bring about the situation by permitting Tedis Ukraine to acquire several key distribution companies.
Nicotine vaping products were the most popular quit-smoking aids (27.2 percent) in England in 2020, according to Public Health England’s (PHE) seventh independent report on vaping, carried out by researchers at King’s College London. Using a vaping product as part of a quit attempt in local stop smoking services had some of the highest quit success rates—between 59.7 percent and 74 percent in 2019 and 2020. An estimated 50,000 smokers stopped smoking with the aid of a vaping product in 2017.
Despite these trends, 38 percent of smokers in 2020 believed that vaping is as harmful as smoking, with 15 percent believing that vaping is more harmful.
The coronavirus pandemic is likely to have had an impact on smoking and vaping behaviors in both adults and young people. However, it is still too early to assess the full effect of the pandemic, with much of the data examined in this report being pre-pandemic.
Vaping has plateaued in adults and young people since the last PHE report in March 2020. Around 4.8 percent of young people (aged 11 to 18) reported vaping at least once a month—the same as last year—and most of these were either current or former smokers (only 0.8 percent of young people who had never smoked currently vape). Smoking prevalence among young people, including those who smoked sometimes or more than once a week, was 6.7 percent in March 2020, similar to March 2019 at 6.3 percent.
Similar to last year, around 6 percent of adults are current vapers, equating to about 2.7 million adult vapers in England. Smoking prevalence continues to fall and is between 13.8 percent and 16 percent depending on the survey. Vaping prevalence was between 17.5 percent and 20.1 percent among current smokers, around 11 percent among former smokers and between 0.3 percent and 0.6 percent among those who have never smoked. The proportion of vapers who also smoke, or “dual users,” has declined since 2012.
“Our report draws together findings from randomized controlled trials, stop-smoking services and population studies and concludes that nicotine vaping products are an effective way of successfully quitting smoking,” said Ann McNeill, professor of tobacco addiction at King’s College London.
“What is concerning is that smokers, particularly those from disadvantaged groups, incorrectly and increasingly believe that vaping is as harmful as smoking. This is not true and means fewer smokers try vaping.
“The goal for 2030 is to be smoke-free in England. The development of a new Tobacco Control Plan and this year’s review of the Tobacco and Related Products Regulations 2016 is an opportunity to ensure that the regulations around vaping are appropriate. The regulations are also hoped to help smokers to quit while not attracting people who have never smoked.”
Juul Labs announced findings from its science and research program at the 2021 Annual Meeting of the Society for Research on Nicotine & Tobacco (SRNT), which was held virtually. The studies presented covered a wide range of topics that contribute to the growing body of scientific evidence on ENDS products, including information about their harm reduction potential as well as rates of complete switching to ENDS among adult smokers.
To better understand patterns of tobacco product use among adult smokers, Juul Labs has developed an extensive behavioral research program that includes measurements of complete switching from combustible cigarettes to the Juul System among adult smokers. Among the data presented at SRNT are the results of a longitudinal study, which found that more than 50 percent of adult smokers who purchased the Juul system reported complete switching at a 12-month follow-up assessment. Complete switching was defined as no cigarette smoking in the past 30 days.
Another new study presented this week examined trends in dual use of the Juul system and cigarettes among adult smokers who recently purchased Juul products as well as any changes in cigarette consumption among these dual-users. While dual use of Juul products and cigarettes was initially high, it declined over time, and most adult smokers who began by dual-using ultimately switched completely away from cigarettes 12 months after initial purchase. Additionally, over 60 percent of dual users at 12 months substantially reduced their average daily cigarette consumption. Researchers concluded that dual use is often a transitional stage characterized by reductions in cigarette consumption followed by complete switching away from cigarettes.
Coesia has appointed Alessandro Parimbelli as its new chief executive officer, the company announced in a statement.
Parimbelli comes from Jabil Circuit where he was executive vice president and chief executive officer of the company’s enterprise and infrastructure division.
The new CEO will continue the process of innovation and growth at Coesia, a group of 21 companies specialized in highly innovative industrial and packaging solutions based in Bologna, Italy. The group, whose sole shareholder and president is Isabella Seragnoli, is present in 35 countries with 84 production plants in 136 operating units and has more than 8,000 employees.
Coesia’s companies include prominent tobacco machinery suppliers such as G.D, Cerulean, Comas, Flexlink, Molins and Sasib.
The value of the global roll-your-own tobacco product market will likely reach $10.42 billion by 2028, according to a new report by Grand View Research. It is expected to expand at a compound annual growth rate (CAGR) of 4.2 percent from 2021 to 2028.
According to the study, the rising consumption of products among females and students is fueling growth around the world. The adoption rate of the product is increasing among youth in major economies. Moreover, the financial stress caused by the Covid-19 pandemic has encouraged numerous smokers to shift from factory-made cigarettes to hand-rolled cigarettes due to the cost advantage of roll-your-own (RYO) tobacco products.
North America is expected to register the fastest CAGR of 4.7 percent from 2021 to 2028, owing to the increasing adoption of the product among young adult consumers.
By product, the filter and paper tip segments are expected to register the fastest CAGR of 4.7 percent from 2021 to 2028.
Europe dominated the market by accounting for over 55 percent in 2020. The rate of smoking in European countries has contributed to the growth of the market in the region.
The offline distribution channel held the largest share of more than 85 percent in 2020.
Imperial Brands has appointed former PepsiCo and Fonterra executive Anindya Dasgupta as chief consumer officer effective May 1, 2021.
This is a role reporting to CEO Stefan Bomhard and created to reinforce the importance of consumer centricity to the company’s new strategy and five-year plan.
“Anindya has outstanding consumer, brand and innovation experience, having held senior roles in significant international companies such as PepsiCo, GlaxoSmithKline and Fonterra,” Bomhard said in a statement. “The consumer is at the core of our new strategy, and Anindya will ensure that we have the right marketing, brand and portfolio management capabilities to successfully deliver our five-year plan to transform Imperial.”
“Imperial is a company with great potential, and I am delighted to be joining at a time when Stefan and the team are implementing an exciting strategy that will rejuvenate the business and unlock value for our stakeholders,” said Dasgupta.
Dasgupta has held executive international marketing, brand and general management positions in multiple markets, including the U.S., India, Singapore, Thailand and the U.K. After working in various positions within the consumer goods division at GlaxoSmithKline, he joined PepsiCo where he held various roles, including senior director of the global beverages group. He then joined the world’s largest dairy exporter, Fonterra, where his roles included chief marketing officer and global head of consumer business.
Public Health England’s (PHE) latest evidence review reinforces vaping’s role in smoking cessation as well as the low rate of use among underage never-smokers.
As the U.K. prepares to reevaluate its Tobacco & Related Products Regulations following Brexit, the report shows great successes in harm reduction and smoking cessation linked to vaping products.
In every region of the country, quit rates among adult smokers were found to be higher with the use of vaping than with other products, ranging from 49 percent success in the South West to 78 percent in Yorkshire and the Humber.
PHE states that the use of nicotine-replacement therapies (NRT) among long-term former smokers is declining while the use of vaping products is increasing. Citing data from Action on Smoking and Health, the review highlights that the most common reasons given for vaping were to quit combustible cigarettes (29.7 percent), stay off cigarettes after quitting (19.4 percent) and to reduce tobacco consumption (11.2 percent).
Flavors remain an important driver for those using vaping products, with 31.6 percent of vapers reporting fruit flavors to be their preference.
Uptake among “never-smoker” youth remains very low, between 0.8 percent and 1.3 percent, with PHE confirming that this rate has not increased in recent years.
John Dunne
“This a defining moment for the vaping sector and truly shows the considerable progress it has made against a backdrop of significant misinformation around the industry, with Public Health England once again stating that perceptions of the harm caused by vaping compared with smoking are increasingly out of line with the evidence,” said John Dunne, director general of the U.K. Vaping Industry Association (UKVIA).
“This latest data, which the review is based upon, provides incontrovertible evidence as to the importance of vaping to successful smoking cessation and the nation’s public health.”
Dunne also pointed to challenges that need addressing by the industry and policy makers.
“Despite the many positives in this report, a great deal remains to be done,” he said. “Action on Smoking and Health, for example, has found that just 11 percent of local authority stop-smoking services are offering vaping products to some or all of those trying to quit smoking. With the clear efficacy of vaping evidenced in this report, we must ensure this figure grows.
“As an industry, we also share PHE’s views on stronger enforcement in preventing underage sales. In our response to the government’s TRPR consultation, which we will be publishing shortly, we call for fully funded regional and national test purchasing schemes to better understand compliance and to help educate retailers on their legal requirements. The UKVIA has already published the first ever Preventing Underage Sales Guide for vape shops and online retailers, which has been supported by Trading Standards.
“The review’s finding that more than 50 percent of people believe vaping to be as harmful or more harmful than the use of combustible cigarettes means we need to keep educating smokers about the fact that vaping is a fraction of the harm of smoking, has literally changed the lives of former smokers for the better and is acknowledged as one of the best ways to quit conventional cigarettes.”
The U.S. Food and Drug Administration’s public list of “deemed” tobacco products fails to apprise stakeholders of unlawfully marketed products and fails to identify products that are lawfully marketed, according to Bryan Haynes of the Troutman Pepper law firm.
On Feb. 16, 2021, the FDA published the long-awaited list of products that were on the U.S. market on Aug. 8, 2016, are currently on the U.S. market and were the subject of a request for marketing authorization submitted to FDA by Sept. 9, 2020.
The initial version of the list includes cigar, pipe tobacco and waterpipe tobacco products that were the subject of substantial equivalence (SE) or exemption from substantial equivalence applications filed by Sept. 9, 2020. However, the list excludes submissions for electronic nicotine-delivery systems (ENDS), apparently because the FDA has not yet completed its intake review of the thousands of premarket tobacco product applications (PMTAs) submitted for ENDS products.
Writing on The Tobacco Law Blog, Haynes says this omission is striking, given what appears to be the plethora of ENDS products that are currently on the market and for which no PMTA was submitted by the manufacturer or importer. Although the FDA has issued a few warning letters to sellers of these unauthorized products, it appears that these warning letters have only scratched the surface of unauthorized products.
Haynes says the list also excludes “deemed” products that are grandfathered from the premarket review process and “deemed” products that have received FDA marketing authorization.
“In order to better advise the public as to which products can legally be sold, FDA will need to expedite the inclusion of ENDS products on the list, as well as consider better ways to advise the public of products that are exempt from premarket review or that have obtained marketing authorization,” writes Haynes.
Authorities in Nigeria and Sri Lanka want to restrict sales of individual cigarettes to discourage smoking. Sales of single sticks are common in developing countries where many smokers are unable to afford packs.
Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) says it will start confiscating cigarettes sold by the stick at the expiration of the moratorium given in the Tobacco Control Law, according to thePremium Times.
Scheduled to come into effect by mid-2021, new rules require tobacco companies to sell cigarettes in sealed and tamper-proof packaging, allowing law enforcement to easily spot illegally opened packs.
“Once it is tamper-proof, anybody who is selling by the sticks at that point is violating the law in a significant manner, and we will have absolutely no apologies in confiscating the products on their shelves,” said Babatunde Irukera, executive vice chairman of the FCCPC.
Sri Lanka, too, is drafting legislation banning the retail sale of individual cigarettes, reports News 1st, citing the country’s National Authority on Tobacco and Alcohol (NATA).
“By drafting regulations to ban the retail sale of [single] cigarettes, those who cannot quit the habit of smoking will be compelled to purchase a full packet of cigarettes, which will contain 20 per pack,” said NATA Chairman Samadhi Rajapaksa. “Thereby, buying capacity will reduce, meaning, the tendency for smoking in the country could be brought down drastically by imposing a ban on retail sale of [single] cigarettes.”
Rajapaksa noted that about 110 people die daily due to the consumption of tobacco and alcohol in Sri Lanka. He also stated that consumers spend close to LKR1billion ($5.2 million) on tobacco and liquor daily.
The China-based vapor company RLX Technology has hired Lu Chao as its chief financial officer, according to people with knowledge of the matter.
Lu, a managing director and head of Asia healthcare investment banking at Citigroup, is expected to join the U.S.-listed e-cigarette maker as soon as March. Lu will help RLX Technology to identify expansion and investment opportunities in the healthcare industry that could apply its vaping technology, said the source, who asked to remain anonymous.
A Princeton University graduate, Lu joined Citigroup in December 2013, according to his LinkedIn profile.
RLX Technology, which is known for its RELX-branded devices, raised about $1.4 billion in an initial public offering in the U.S. earlier this year, according to Bloomberg. Lu was a lead banker on the deal, the source said, as Citigroup and China Renaissance Holdings arranged the offering.
Shares in RLX Technology have risen more than 75 percent since its January debut, giving the company a market value of about $32.7 billion.
