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Tag: Germany

  • Charlotte’s Web Announces Financials, Deal with BAT

    Charlotte’s Web Announces Financials, Deal with BAT

    Charlotte’s Web Holdings, Inc. announced a transaction with BT DE Investments yesterday (March 30), a subsidiary of British American Tobacco, to convert a $54.2 million convertible debenture plus accrued interest into equity at $0.68 per share and complete a concurrent $10 million private placement, resulting in the issuance of about 110 million shares and a total equity commitment of roughly $75 million. The deal would eliminate about $65 million in debt, stop future interest accrual, and leave the company with no long-term debt, subject to shareholder and TSX approval at a meeting planned for May 28, 2026.

    Today (March 31), the company released its 2025 financials and said it advanced product innovation, in-house manufacturing, and healthcare channel development while holding annual revenue broadly steady at $49.9 million. Fourth-quarter revenue rose 4.7% year over year to $13.3 million, supported by new Brightside low-dose hemp THC gummies, sleep products, functional mushrooms, and minor cannabinoids, though gross margin was affected by a one-time inventory charge tied to legacy gummies. Full-year gross margin improved to 43.5% and SG&A fell 21% to $42 million following cost reductions, narrowing the operating loss to $20.3 million from $32 million in 2024. The company ended the year with $8 million in cash and reported progress toward internalizing gummy production, achieving a clean NSF 455-2 cGMP audit, and establishing a Scientific Advisory Board to support its expanding medical practitioner channel.

    Charlotte’s Web said the strengthened balance sheet will support its planned participation in a Centers for Medicare & Medicaid Innovation pilot enabling access to hemp-derived CBD products for Medicare beneficiaries and ongoing clinical development by DeFloria, its joint venture with BAT and Ajna BioSciences, which is preparing to begin Phase 2 trials of a botanical CBD-based treatment candidate in mid-2026.

  • Imperial to Close Langenhagen Plant by 2027

    Imperial Brands announced it will shut down cigarette production at its Reemtsma plant in Langenhagen, Germany, by 2027 after failing to secure a buyer, a move affecting around 600 employees. The site, operating since 1971 and currently producing cigarettes, fine-cut tobacco, and tobacco sticks for heated products, is the last Reemtsma manufacturing location in Germany. Company executive Sami Naffakh said extensive efforts to find a viable solution for the plant’s future had proved unsuccessful, citing high production costs, underutilization, and declining volumes in the traditional tobacco segment.

    Germany’s Food, Beverages and Restaurants Union criticized the process, claiming workers were kept in the dark about buyer discussions, while Imperial Brands said the union had been kept indirectly informed within confidentiality limits. The closure follows an October announcement that the site would either be sold or wound down, with production expected to be phased out over the next two years.

  • De Facto Flavor Ban Threatens German Harm Reduction

    De Facto Flavor Ban Threatens German Harm Reduction

    Germany is advancing a draft regulation to ban menthol and other vape flavors containing synthetic cooling agents, with implementation possible in 2026 under the Federal Ministry for Agriculture and Food, according to Filter magazine. The Federal Institute for Risk Assessment (BfR) says cooling agents may make vaping easier to inhale and potentially increase nicotine intake, particularly among youth, though it acknowledges that coolants are “poorly researched,” with “very limited” data to back these claims.

    Critics, including the Bundesverband Rauchfreie Alternative, argue the measure amounts to a de facto flavor ban because cooling agents are widely used in e-liquids. They warn it could undermine harm-reduction efforts in Germany, where smoking rates remain high despite a 2020 menthol cigarette ban aligned with European Union rules.

    Opponents say restricting flavored vapes risks pushing consumers back to combustible cigarettes or into illicit markets. Heino Stover, professor of social science addiction research at Frankfurt University of Applied Sciences, told Filter that the “scientific evidence is not there” to warrant such a sweeping ban. “A ban on flavors will not help decrease the high smoking prevalence,” he said. Germany’s aim of reducing its smoking rate to 5% or below by 2040 already seemed ‘unrealistic’ before the proposed ban; it now looks even more unrealistic.”

    The draft remains under review.

  • BAT Funds $48M for Organigram’s Sanity Group Acquisition

    BAT Funds $48M for Organigram’s Sanity Group Acquisition

    Organigram Global Inc. revealed that it has entered into a subscription agreement with BT DE Investments Inc. – a wholly-owned subsidiary of British American Tobacco – to fund its previously announced acquisition of Sanity Group GmbH. Under the agreement, BAT will subscribe for 14,027,074 common shares at C$3 ($2.19) each and exercise top-up rights for 9,897,356 additional shares at C$2.335854 ($1.71), generating total gross proceeds of C$65.2 million ($47.6 million).

    The proceeds, along with cash on hand and funds from a previously arranged up to $60 million senior secured credit facility, will be used to finance the cash portion of the acquisition, transaction costs, and general working capital. To ensure BAT does not exceed a 30% ownership threshold post-issuance, the company will issue non-voting Class A convertible preferred shares if needed, which can be converted into common shares under specified conditions. Shareholder approval for the acquisition and private placement will be sought at Organigram’s annual and special meeting on March 30, in compliance with TSX rules and related-party transaction regulations. The Board unanimously approved the deals, with BAT’s nominees abstaining from voting.

  • German Tobacco Use Drops, as ‘Substitutes’ Rise 18%

    German Tobacco Use Drops, as ‘Substitutes’ Rise 18%

    Germany’s taxed cigarette volumes edged higher in 2025, even as long-term tobacco consumption continued to decline, according to preliminary data from the Federal Statistical Office (Destatis). A total of 66.4 billion cigarettes were taxed during the year, up 0.2% (0.1 billion cigarettes) from 2024, but less than half the 146.5 billion recorded in 1991. Per capita cigarette consumption stood at 795 cigarettes in 2025, compared with 1,831 in 1991. Sales of fine-cut tobacco fell 1.2% year on year to 24,864 tons, while cigars and cigarillos declined 6.6% to 2.1 billion units. Hookah tobacco sales dropped 8.8% to 1,162 tons, despite regulatory changes allowing larger pack sizes again, while pipe tobacco rose 2.9% to 323 tons. In contrast, taxed volumes of tobacco substitute products such as e-cigarette liquids increased sharply, rising 18.2% year on year to 1.5 million liters, reflecting continued growth in non-combustible alternatives under Germany’s evolving tobacco tax regime.

  • Bavaria Moves to Regulate Vape and Hookahs Like Traditional Cigarettes

    Bavaria Moves to Regulate Vape and Hookahs Like Traditional Cigarettes

    The Bavarian Christian Social Union (CSU) parliamentary group is pushing to extend strict tobacco regulations to e-cigarettes, e-hookahs, and tobacco heaters, all of which currently occupy a regulatory gray area. The proposed changes to the Bavarian Health Protection Act would eliminate that, having them treated like cigarettes and cannabis vaporizers, thereby banning them in restaurants, bars, schools, hospitals, sports facilities, and airports.

    The proposal reflects growing concern in Bavaria over the popularity of vaping and alternative nicotine products among youth and the need to align all inhaled nicotine products under the same safety and usage restrictions. The Greens have welcomed the initiative, calling for stronger protections for minors and support for comprehensive public health measures.

  • KT&G Launches ESSE in Germany, Marking Major European Expansion

    KT&G Launches ESSE in Germany, Marking Major European Expansion

    KT&G has officially launched its flagship ESSE superslim cigarette brand in Germany, signaling the start of a full-scale European expansion for the South Korean company. Partnering with German distributor Hauser, the company introduced ESSE Blue and ESSE Red in key cities including Berlin, Dortmund, and Munich.

    “ESSE has already been recognized as a competitive, stylish product in many countries, and has grown to become the global No. 1 superslim brand,” a KT&G spokesperson said. “We will continue to expand our influence in Germany based on the distinguished features of our product.”

    First launched in 1996, ESSE has grown to reach around 90 global markets, with major success in the Middle East, Russia, Southeast Asia, and Latin America. In 2024, the brand sold 430 billion sticks globally, claiming one-third of the global superslim segment.

  • Luxembourg Sees 17% Surge in Cigarette Sales as Buyers Cross Border

    Luxembourg Sees 17% Surge in Cigarette Sales as Buyers Cross Border

    Legal cigarette sales in Luxembourg jumped by 740 million units in 2024, marking a 17% year-on-year increase, according to a new KPMG report on illicit cigarette consumption across Europe. Despite the surge, only 12% of the 5.1 billion cigarettes sold were smoked within the country, as the remaining 88% were consumed across the border, mostly in Germany, Belgium, and France, where significantly higher tobacco prices continue to drive cross-border purchases.

    Luxembourg’s average cigarette pack price of €5.10 undercuts neighboring countries by up to €3, and is less than half of the cost in France.

    While cigarette consumption is booming, illicit trade remains low. Fewer than 9 million cigarettes consumed in Luxembourg were illicit—just 2% of total consumption. By contrast, France’s illicit cigarette rate has climbed to 38%, among the highest in the EU, as high prices fuel a parallel underground market.

  • Raíces Cubanas Expands into Germany

    Raíces Cubanas Expands into Germany

    Raíces Cubanas entered into an exclusive distribution partnership with Vandermarliere Cigar Family (VCF)/Woermann Cigars to expand its line to Germany, with initial shipments to retailers scheduled for June 16. VCF, the parent company of Oliva and J. Cortès, is known for its strong European network and premium cigar portfolio. The move into Germany represents the brand’s first step into international markets.

    As part of the expansion, two core product lines will be introduced to the German market: Raíces Clasico, available in Robusto (5 x 50), Toro (6 x 52), and Figurado (5 3/16 x 54); and Raíces C5 Black, offered in Robusto (5 x 52), Toro (6 x 52), and Gordo (6 x 60).

    “We are very excited to present the Raíces brand to cigar enthusiasts in Germany,” Ralph Montero, owner of Raíces Cubanas said in a press release. “This is the first step in the expansion of Raíces into cigar markets around the world.”

  • German Study Finds Smokers Unmotivated to Quit

    German Study Finds Smokers Unmotivated to Quit

    A German Study on Tobacco Use (DEBRA) reported that around 30% of the population smoked cigarettes in 2024. The study focused on the habits and thoughts of nearly 1,200 adults who smoked daily and found that 51.2% of people who smoked were not motivated to stop smoking, 29.1% reported an intention to quit in the following year, and the remainder had some desire to quit but had not decided when to try.

    Lack of motivation was highest among people who 65 and older (64.4%) and lowest among those aged 19 to 34 years (38.9%). People with lower socioeconomic status who smoked had less motivation to quit than those with a higher socioeconomic status. In the sample of people who smoke, the barriers to quitting smoking included enjoyment of smoking (50.1%), difficulty in changing habits (41.4%), and lack of discipline (31.2%), with key differences among age groups. Only 27.3% of people who smoke perceived E-cigs/HTPs to have lower health risks relative to cigarettes, versus 84.7% of smoke-free product (SFP) users.

    “The best way to reduce the health risks of smoking is to quit smoking altogether. However, focusing solely on cessation does not acknowledge the real challenges that people who smoke (barriers to quitting) face when trying to quit,” the study concluded. “The survey results, specifically on the lack of motivation to quit, suggest that current tobacco control measures are not effectively motivating the majority of people who smoke in Germany to quit. This study demonstrated that half of the people who smoke surveyed are not motivated to quit, and only 5% plan to quit in the next month. Older segments of the study population (aged 50+) and those in lower-income brackets are even less motivated to quit, with smoking enjoyment being the biggest barrier to quitting, affecting more than 60% of people who smoke and do not want to quit.

    “Lack of motivation to quit smoking and barriers to quitting manifest in different ways, implying that differentiated approaches are required to help people who smoke successfully move away from smoking cigarettes. They should have access to accurate information on the role of combustion-generated toxicants as the primary cause of smoking-related diseases and the relative risks of SFPs compared with continuing to smoke. Sustainably reducing smoking prevalence in Germany will require an integrated strategy that complements the existing tobacco control and prevention measures with tools based on the principles of tobacco harm reduction.”