Tag: Featured

Stories featured at the top of tobaccoreporter.com

Restrictions Threaten Zimbabwe’s Season
Restrictions on public gatherings to prevent the spread of coronavirus infections are threatening to disrupt the Zimbabwean tobacco selling season, reports The Zimbabwe Daily Mail.
The tobacco selling season attracts thousands of farmers to Harare and selling points outside the capital to trade in Zimbabwe’s prime foreign currency earner. Apart from farmers, thousands of traders and other small businesses flock to tobacco auction floors in an annual ritual.
On Tuesday, President Emmerson Mnangagwa announced measures to contain a possible outbreak, which included banning of gatherings of more than 100 people.
March 20, 2020
Altria CEO contracts coronavirus
Altria CEO Howard Willard has tested positive for the coronavirus, according to Reuters.

Willard is taking temporary medical leave, and William Gifford Jr., Altria’s chief financial officer, is taking over in his absence.

“Howard has been out of the office for several days, and we have notified those who were in close contact with Howard and asked them to self-quarantine for 14 days,” a staff memo said.
March 20, 2020
PM Suspends Richmond Operations
Philip Morris USA’s cigarette factory in Richmond, Virginia, USA
Altria Group is temporarily suspending operations at Philip
Morris USA’s factory in Richmond, Virginia, USA, out of an abundance of caution
after learning last night that a second PM USA employee tested positive for
COVID-19. The company expects the manufacturing center to suspend operations
for the next two weeks, though PM USA will continue to monitor the evolving
situation.
PM USA has actively implemented business continuity plans
and believes it has sufficient finished goods cigarette inventory for
approximately two months based on current estimated shipping volume, in
addition to current wholesale and retail inventories. Separately, some
Middleton domestic operations will also be suspended for two weeks due to
COVID-19 related supply chain constraints. Middleton believes it has sufficient
finished goods cigar inventory for approximately 3 months based on current
estimated shipping volume, in addition to current wholesale and retail
inventories.
“We are committed to protecting the safety and well-being of
our employees, contractors, their families and the communities where we
operate,” said Billy Gifford, Altria’s vice chairman and chief financial officer.
“We take the threat of COVID-19 seriously and have been actively implementing
plans to minimize business disruptions and their potential impact to our
employees, consumers and customers.”
During this temporary two-week suspension of plant
operations, PM USA and Middleton will pay employees their regular base wages.
PM USA and Middleton will evaluate providing additional pay continuation beyond
that timeframe as needed.
March 20, 2020
Plea to Keep U.K. Shops Open

The U.K. vapor industry is urging the government to keep vape stores open across the country, rather than forcing them to close as part of any intensification of its coronavirus containment strategy. Closing vapes stores, the industry argues, would be a potentially counterproductive move that could place further strain on the already overstretched National Health Service.
In an open letter to Nadhim Zahawi, Parliamentary Under-Secretary of State at the Department for Business, Energy and Industrial Strategy, the U.K. Vaping Industry Association (UKVIA), the largest trade body representing the vaping sector in the U.K., calls for vape shops in cities, towns and rural areas to stay open and be exempt from any government lockdown.
In the letter the UKVIA cites the experience of Italy, the country in Europe hit hardest by coronavirus so far and where the government reversed its decision to close vape stores as part of its containment program.
The letter to the British Minister reads: “We recognize and support the government’s intensified containment plan for the virus but would urge you and your colleagues to look at the example of Italy.
“Dr Riccardo Polosa, a world renowned scientist and researcher on vaping and tobacco harm reduction and founder of the Centre of Excellence for the Acceleration of Harm Reduction, successfully argued that due to the stress caused by the Coronavirus, with the closure of vape shops vapers were highly likely to go back to smoking cigarettes to maintain their nicotine needs. This could be dangerous from a public health perspective and could heighten the risk of exposure of tobacco smoke to bystanders during the crisis, including families and children. It could also place a further burden on an already overstretched health system.”
The UKVIA goes on to call on the British government to give the sector every support it can so that the industry can maintain its service to three million plus vapers across the country, including those in self isolation and people living in remote areas, whilst continuing to play a key role in helping even more smokers to quit by taking up vaping.
“The U.K. vaping industry, including retail outlets, online stores, manufacturers and compliance specialists, has a vital role to play in communities across the country, both from an economic and public health perspective and we want the government to recognize this in their response to the unprecedented challenge we face,” said John Dunne, director of the UKVIA.
“In particular, if vape shops were to close it would mean that smokers and vapers would not have access to specialist advice. Keeping the vaping sector open for business is also crucial to meeting the government’s target for England to be smoke free by 2030.”
Backing the vaping industry request, Sir Kevin Barron, Honorary Fellow of the Royal College of Physicians and former MP and previous member of the General Medical Council, said: “It is predicted that Coronavirus will have a huge negative mental health impact on our population with added stress and anxiety arising from being quarantined or isolated, worries about jobs and finances, and the risk of the disease to themselves and friends and families.”
“In such situations there can be a heightened temptation to smoke and its crucial that continued access to vaping during the crisis ensures vapers do not return to conventional cigarettes and that existing smokers can be encouraged to switch to vaping. The concern is that if the number of smokers increase in the UK this could place further pressure on an already under pressure domestic health system struggling to deal with the coronavirus.
“In addition, the performance of the vaping industry speaks for itself. It’s one of the stand-out success stories of the 21st century in the business world. Therefore, the government needs to give it the support it needs to continue to thrive and contribute to local economies around the country, now and in the future.”
The UKVIA has also sent its letter to Paul Scully, small business minister, and Jo Churchill, minister for prevention, public health and primary care.

March 19, 2020
FDA suspends inspections

The U.S. Food and Drug Administration (FDA) has suspended domestic compliance checks and vape shop inspections amid the spread of coronavirus.
The FDA has temporarily deferred all domestic routine surveillance facility inspections and postponed most foreign inspections through April. Administrative work can continue for two weeks, though, according to the Center for Tobacco Products.
March 13, 2020
BAT Boasts Financial Progress
TR Online | February 27, 2020
British American Tobacco (BAT) reported an increase in revenue of 5.7 percent to £25.88 billion ($33.3 billion) for the year ending Dec. 31, 2019.
Profit from operations declined 3.2 percent to £9.02 billion from the previous year. However, adjusted profit from operations rose by 7.6 percent to £11.13 billion from 2018.
BAT’s new product categories revenue grew by more than one-third to £1.21 billion at constant rates with strong growth in all categories, despite the slowdown in the U.S. vapor market. Excluding U.S. vapor, new categories grew by 39 percent at constant rates.
“I am delighted with the progress we have made in all areas,” said Jack Bowles, CEO of British American Tobacco. “We have delivered value growth from our combustible business and grown our new categories business, now providing potentially reduced-risk products to close to 11 million consumers.
“In September, we announced a significant restructuring and simplification program, which is largely complete. This will create the capabilities and resources to continue investing in new categories and allow us to deliver on our financial commitments. Looking into 2020, we are confident of another year of high single-figure adjusted constant currency earnings growth.”
March 10, 2020
Emmanuel Babeau to Guide PMI Shift
Philip Morris International has appointed Emmanuel Babeau as its chief financial officer, replacing Martin King. King will be taking on a new role as CEO, PMI America, a newly created function. Reporting to global CEO Andre Calantzopoulos, King will coordinate both international services based in the U.S. and all U.S. representation, including PMI’s relationship with Altria, which is commercializing IQOS in the American market.
Babeau will join PMI on May 1, 2020, from Schneider Electric, where he served most recently as deputy CEO in charge of finance and legal affairs. A native of France and graduate of ESCP Business School, he has spent nearly three decades leading fundamental change across industries.
“PMI is undergoing a period of intensive change as we transition away from cigarettes to our science-based smoke-free products—products that are much better alternatives than continued cigarette smoking,” said Calantzopoulos. “We are thrilled that Emmanuel will be joining us to further accelerate the PMI transformation towards a smoke-free future. He has an enviable track record of challenging the status quo and growing businesses under the most complex circumstances.”
During his 10 years at Schneider Electric, Babeau helped to grow the company from €18 billion market cap to approximately €60 billion ($66.73 billion), while transforming the business model from hardware products for electrical distribution into digital technologies driving the energy transition and industry 4.0. In 2019, Harvard Business Review cited Schneider Electric as one of the top 15 business transformations of the past decade. The company now has €27 billion in revenues and is a leader in digital solutions for efficiency and sustainability.
“PMI is precisely the challenge I was looking for: a global leader in its industry with a commitment to fundamental change—and one that is prompted not only by business strategy but also by a desire to operate more sustainably and in the interest of public health,” said Babeau. “I am excited about working with André Calantzopoulos, Jacek Olczak and the rest of the leadership team to achieve PMI’s business objectives.”
March 10, 2020
Bates: ‘Vaping Still Better Than Smoking’
Public Health England is sticking to its long-held conviction that vaping is a better alternative to smoking combustible cigarettes and that never-smokers should be encouraged not to smoke or vape.
Its sixth report on e-cigarettes, “Vaping in England: 2020 evidence update summary,” shows a decline in adults who view vaping as less harmful than smoking—from 45 percent in 2014 to 34 percent in 2019. The report also states that there has not been a major increase in youth vaping and that only 1 percent of youth never-smokers are current vapers.
Based on the report, PHE concluded that vapor products, both nicotine and non-nicotine products, should be regulated, but banning flavors would negatively affect adult smokers who are attempting to quit smoking using vapor products. The report also states that “NHS [National Health Service] England should issue guidance on vaping in mental health trusts to ensure consistency and equity across the NHS” and “the spate of lung injuries and deaths in the U.S. is not attributable to the regulated nicotine vaping products currently sold in England. But all suspected adverse reactions or suspected deaths need to be assessed.”
According to the report, perceptions of harm from vaping among smokers are increasingly out of line with the evidence. “Safety fears may well be deterring many smokers from switching, leaving them on a path to years of ill health and an early death due to their smoking,” said John Newton, director of health improvement at PHE.
Vaping advocates welcomed the report. “[The report] provides further and concrete evidence that vaping has a crucial role to play in changing the lives of smokers around the country, and it dispels the myths that youth vaping is currently a major issue,” said John Dunne, director of the U.K. Vaping Industry Association.
“However, it also tells us that the gross misinformation that has been spread about the safety of vaping has had an effect on consumers’ perceptions of e-cigarettes, which could greatly influence their decision to switch from smoking, which carries significantly more health risk.”
March 10, 2020
CEO Denied Bonus After Juul Setback
Howard Willard, CEO of Altria, will not receive an annual incentive award as a result of the company’s declining investment in Juul Labs.
“The compensation committee considered the significant impact that Altria’s 2018 minority investment in Juul Labs Inc. has had on shareholder value. As a result … Willard should not receive an award under the Annual Incentive Plan for 2019,” the company stated.
Willard’s base salary in 2020 will not increase from $1.25 million, according to Altria. His 2018 annual incentive was $2.25 million.
Altria’s stake in Juul Labs was valued at $4.2 billion at the end of 2019, down from $12.8 billion in 2018.
According to Reuters, U.S. regulators have opened a probe into Altria’s investment.
March 10, 2020
Universal Reports Lower Income
Universal Corp. reported net income of $56.1 million for the nine months ended Dec. 31, 2019, compared with $72.8 million for the same period of the prior fiscal year. Excluding certain nonrecurring items, net income declined by $20 million.
For the third fiscal quarter that ended Dec. 31, 2019, net income was $26 million, compared with net income of $28.1 million for the prior year’s third fiscal quarter. Excluding certain nonrecurring items, net income declined by $17 million.
For the quarter ended Dec. 31, 2019, results declined for all segments compared to the quarter ended Dec. 31, 2018. Consolidated revenues decreased by $277.5 million to $1.3 billion for the nine months ended Dec. 31, 2019, and by $131.1 million to $505 million for the three months ended Dec. 31, 2019, compared to the same periods in fiscal year 2019, on lower sales volumes and prices.
February 14, 2020