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  34. <title>U.S. Delays Menthol Ban Decision Again</title>
  35. <link>https://tobaccoreporter.com/2024/04/26/u-s-drops-menthol-ban-wall-street-journal/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=u-s-drops-menthol-ban-wall-street-journal</link>
  37. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  38. <pubDate>Fri, 26 Apr 2024 18:23:06 +0000</pubDate>
  39. <category><![CDATA[Featured]]></category>
  40. <category><![CDATA[Flavors]]></category>
  41. <category><![CDATA[Menthol]]></category>
  42. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127716</guid>
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  44. <description><![CDATA[Citing an "immense amount of feedback" on the controversial measure, officials declined to provide a new target date. ]]></description>
  45. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127716" class="elementor elementor-127716">
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  53. <img fetchpriority="high" decoding="async" width="800" height="600" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/08/menthol.jpg?x70034" class="attachment-large size-large wp-image-106292" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/08/menthol.jpg?x70034 1000w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/08/menthol-300x225.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/08/menthol-768x576.jpg?x70034 768w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: Alicia</figcaption>
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  67. <p>The Biden administration has again delayed its decision on whether to ban menthol cigarettes in the United States.</p><p>&#8220;This rule has garnered historic attention, and the public comment period has yielded an immense amount of feedback, including from various elements of the civil rights and criminal justice movement,&#8221; said Secretary of Health and Human Services Xavier Becerra in a<a href="https://www.hhs.gov/about/news/2024/04/26/secretary-becerra-statement-proposed-menthol-cigarette-rule.html"> statement</a>. &#8220;It’s clear that there are still more conversations to have, and that will take significantly more time.&#8221;</p><p>Government officials declined to provide a new target date for the measure, saying they needed more time to hear from outside groups, especially civil rights activists.</p><p>Menthols account for more than a third of all cigarettes sold in the U.S. each year and are predominantly used by Black and Latino smokers.</p><p>According to <em><a href="https://www.wsj.com/politics/policy/menthol-cigarette-ban-explained-0c41df7a">The Wall Street Journal</a></em>, lawmakers have been weighing the potential public health benefits of banning minty smokes against the political risk of angering Black voters in an election year.</p><p>A <a href="https://tobaccoreporter.com/2023/11/29/menthol-ban-risks-alienating-voters-poll/">November poll</a> commissioned by Altria Group found that 54 percent of “core” Biden voters—defined as minority voters or non-conservative white voters under age 45—oppose the proposed ban.</p><p>Anti-tobacco groups were aghast by the latest delay. &#8220;It is unacceptable and deeply harmful to public health that the Biden administration today has once again delayed issuing the final rule to prohibit menthol cigarettes,&#8221; said Yolonda C. Richardson, president and CEO of the Campaign for Tobacco-Free Kids, in a <a href="https://www.tobaccofreekids.org/press-releases/l2024_04_26_latest-white-house-delay-in-issuing-final-menthol-rule-is-unacceptable">statement</a>. &#8220;This decision prioritizes politics over lives, especially Black lives.&#8221; </p><p>The FDA f<a href="https://tobaccoreporter.com/2022/04/28/fda-announces-plan-for-menthol-ban/">ormally proposed the ban</a> in April 2022, saying there were 18.5 million smokers who preferred menthol brands in the United States.</p><p>Anti-smoking activists say the cooling sensation of the menthol flavor makes it easier to start smoking and harder to quit. The FDA estimates that the menthol ban could reduce smoking by 15 percent in 40 years. Studies project that as many as 650,000 smoking-related deaths could be avoided.</p><p>Researchers looking at similar moves in other nations estimated that a ban <a href="https://tobaccoreporter.com/2024/02/23/menthol-ban-would-lead-many-to-quit-paper/">could result in nearly a quarter of smokers quitting</a>, with the rest moving to nonmenthol cigarettes or managing to keep smoking menthols.</p><p>In recent months, dozens of groups have met with administration officials to discuss the proposal. Among other concerns, opponents of the measure cite job losses and aggressive police targeting of Black smokers. An estimated 85 percent of U.S. Black smokers prefer menthol brands, according to market data. The FDA insists that enforcement would be against manufacturers rather than consumers.</p><p>Critics, however, contend that tobacco companies are financing and fueling those fears. Richardson said she was disturbed to see the administration &#8220;parrot the false claims of the tobacco industry about support from the civil rights community.&#8221;</p><p>&#8220;The fact is the menthol rule is overwhelmingly supported by Black civil rights, faith, public health, medical and other organizations,&#8221; she said.</p><p>While other jurisdictions, including the European Union, have banned menthol cigarettes, the impact of such a measure would likely be greater in the U.S. because of their large market share. Reynolds American Inc. (RAI), which makes the market-leading Newport brand, earns about $7 billion from menthol cigarette sales a year, research by Goldman Sachs shows.</p><p>Convenience store, gas station and wholesaler groups predict a loss of $34 billion in sales from menthol cigarettes and snacks and drinks purchased by customers. Some House Republicans have sent letters to the administration warning that the ban could have a disastrous effect on small businesses and that it could encourage cigarette smuggling that would benefit terrorist groups.</p><p>Altria spokesman David Sutton said the company was also concerned about illicit sales as well as lost tax revenue and jobs.</p><p>A study on <a href="https://tobaccoreporter.com/2023/10/12/california-flavor-ban-spawned-illicit-market-study/">the impact of a state flavor ban in California</a> suggests the measure spawned a large market for illegal products there.</p> </div>
  68. </div>
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  71. </div>
  72. </section>
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  79. <item>
  80. <title>Pearce to Lead Cigar Association of America</title>
  81. <link>https://tobaccoreporter.com/2024/04/26/pierce-to-lead-cigar-association-of-america/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=pierce-to-lead-cigar-association-of-america</link>
  83. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  84. <pubDate>Fri, 26 Apr 2024 18:12:57 +0000</pubDate>
  85. <category><![CDATA[Cigars]]></category>
  86. <category><![CDATA[Featured]]></category>
  87. <category><![CDATA[People]]></category>
  88. <category><![CDATA[Cigar Association of America]]></category>
  89. <category><![CDATA[Premium Cigar Association]]></category>
  90. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127707</guid>
  91.  
  92. <description><![CDATA[He will leave his position as executive director of the Premium Cigar Association on May 24. ]]></description>
  93. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127707" class="elementor elementor-127707">
  94. <section class="elementor-section elementor-top-section elementor-element elementor-element-8d02e0a elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="8d02e0a" data-element_type="section">
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  99. <div class="elementor-widget-container">
  100. <figure class="wp-caption">
  101. <img decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/jump-1024x683.jpg?x70034" class="attachment-large size-large wp-image-127708" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/jump-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/jump-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/jump-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/jump.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: GIS</figcaption>
  102. </figure>
  103. </div>
  104. </div>
  105. </div>
  106. </div>
  107. </div>
  108. </section>
  109. <section class="elementor-section elementor-top-section elementor-element elementor-element-0a5bff6 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="0a5bff6" data-element_type="section">
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  115. <p>Scott Pearce will leave his position as executive director of the Premium Cigar Association (PCA) and join the Cigar Association of America (CAA) as that organization’s new president.</p><p>“Scott is uniquely positioned to grow and bring innovative lobbying and advocacy to CAA. His depth of experience working in industry and trade groups and his most recent experience with PCA provides CAA a leader who is prepared to take on the difficult issues our association faces.” said Chris Howard, CAA board member and chair of CAA’s committee that sought out its new president.</p><p>Pearce has over 20 years of experience working in associations with a strong track record of driving growth and implementing innovative strategies. </p><p>His last day with the PCA, which Pearce led since 2018, will be May 24, 2024. In the interim, Deputy Executive Director Joshua Habursky will fill the vacancy and oversee operations in coordination with PCA&#8217;s executive committee and board of directors.</p><p> &#8220;We are grateful for Scott&#8217;s time at PCA that saw transformative positive changes for the association from advocacy to trade show and especially grateful that he was able to work with us to hire an incredible team that will have a lasting legacy even after he leaves the organization,” said PCA Board President Scott Regina in a <a href="https://ipcpr.informz.net/informzdataservice/onlineversion/ind/bWFpbGluZ2luc3RhbmNlaWQ9NDE2MzgyMyZzdWJzY3JpYmVyaWQ9NDM2MzA2MDY5">statement</a>.</p><p> “With change comes opportunity,” said Habursky. “Scott was part of a team of staff and a board of directors that resurrected an organization that faced tough times during the pandemic. The association is in a strong position and will continue to be the advocacy leader for premium cigars, host its world-class trade show, and grow all facets of its membership with our existing team.”</p> </div>
  116. </div>
  117. </div>
  118. </div>
  119. </div>
  120. </section>
  121. </div>
  122. ]]></content:encoded>
  126. <post-id xmlns="com-wordpress:feed-additions:1">127707</post-id> </item>
  127. <item>
  128. <title>Vape Companies Urged to Implement Graphic Warnings</title>
  129. <link>https://tobaccoreporter.com/2024/04/26/vape-companies-urged-to-implement-graphic-warnings/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=vape-companies-urged-to-implement-graphic-warnings</link>
  131. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  132. <pubDate>Fri, 26 Apr 2024 13:33:44 +0000</pubDate>
  133. <category><![CDATA[Featured]]></category>
  134. <category><![CDATA[Packaging]]></category>
  135. <category><![CDATA[Graphic Health Warnings]]></category>
  136. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127678</guid>
  137.  
  138. <description><![CDATA[New rules are set to take effect on May 12 in the Philippines. ]]></description>
  139. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127678" class="elementor elementor-127678">
  140. <section class="elementor-section elementor-top-section elementor-element elementor-element-18f4aa2 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="18f4aa2" data-element_type="section">
  141. <div class="elementor-container elementor-column-gap-default">
  142. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-26e6bf0" data-id="26e6bf0" data-element_type="column">
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  145. <div class="elementor-widget-container">
  146. <figure class="wp-caption">
  147. <img decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/05/philippines-1024x683.jpg?x70034" class="attachment-large size-large wp-image-101748" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/05/philippines-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/05/philippines-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/05/philippines-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/05/philippines.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Image: natatravel</figcaption>
  148. </figure>
  149. </div>
  150. </div>
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  152. </div>
  153. </div>
  154. </section>
  155. <section class="elementor-section elementor-top-section elementor-element elementor-element-a33ba4d elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="a33ba4d" data-element_type="section">
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  160. <div class="elementor-widget-container">
  161. <p>The Philippines’s Department of Health (DOH) is urging businesses, distributors and importers to start printing graphic health warnings (GHW) on vaporized products, reports <em><a href="https://tribune.net.ph/2024/04/25/businesses-urged-to-implement-graphic-health-warnings-on-vape-products">Tribune</a></em>.</p><p>The first set of GHW templates for vape products is set to take effect on May 12.</p><p>Under Republic Act No. 11900, also known as the Vape Law,</p><p>Operators who fail to comply with the new rules risk fines of between PHP2 million and PHP5 million and imprisonment of up to six years.</p><p>Manufacturers, importers, distributors and sellers may also face revocation or cancellation of permits and licenses as well as immediate recall, ban, or confiscation of products at the direction of the Bureau of Internal Revenue.</p><p>In addition, foreign individuals found in violation risk deportation.</p> </div>
  162. </div>
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  165. </div>
  166. </section>
  167. </div>
  168. ]]></content:encoded>
  172. <post-id xmlns="com-wordpress:feed-additions:1">127678</post-id> </item>
  173. <item>
  174. <title>Weight-Loss Drugs Suppress Tobacco Cravings</title>
  175. <link>https://tobaccoreporter.com/2024/04/25/weight-loss-drugs-suppress-tobacco-cravings/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=weight-loss-drugs-suppress-tobacco-cravings</link>
  177. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  178. <pubDate>Thu, 25 Apr 2024 15:50:35 +0000</pubDate>
  179. <category><![CDATA[Featured]]></category>
  180. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127618</guid>
  181.  
  182. <description><![CDATA[The finding may impact tobacco sales, given the projected growth for such medications, according to Morgan Stanley. ]]></description>
  183. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127618" class="elementor elementor-127618">
  184. <section class="elementor-section elementor-top-section elementor-element elementor-element-8d2d909 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="8d2d909" data-element_type="section">
  185. <div class="elementor-container elementor-column-gap-default">
  186. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8ddf5e4" data-id="8ddf5e4" data-element_type="column">
  187. <div class="elementor-widget-wrap elementor-element-populated">
  188. <div class="elementor-element elementor-element-07dcdb5 elementor-widget elementor-widget-image" data-id="07dcdb5" data-element_type="widget" data-widget_type="image.default">
  189. <div class="elementor-widget-container">
  190. <figure class="wp-caption">
  191. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/ozempic-1024x683.jpg?x70034" class="attachment-large size-large wp-image-127619" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/ozempic-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/ozempic-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/ozempic-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/ozempic.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: Semi </figcaption>
  192. </figure>
  193. </div>
  194. </div>
  195. </div>
  196. </div>
  197. </div>
  198. </section>
  199. <section class="elementor-section elementor-top-section elementor-element elementor-element-cff56d2 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="cff56d2" data-element_type="section">
  200. <div class="elementor-container elementor-column-gap-default">
  201. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fdc61f9" data-id="fdc61f9" data-element_type="column">
  202. <div class="elementor-widget-wrap elementor-element-populated">
  203. <div class="elementor-element elementor-element-8b6ac09 elementor-widget elementor-widget-text-editor" data-id="8b6ac09" data-element_type="widget" data-widget_type="text-editor.default">
  204. <div class="elementor-widget-container">
  205. <p>GLP-1 weight-loss drugs, such as Ozempic, Wegovy and Zepbound, suppress not only appetite but also nicotine cravings, reports <a href="https://qz.com/ozempic-drugs-alcohol-tobacco-use-1851430022"><em>Quartz</em></a>, citing a new report from Morgan Stanley.</p><p>The investment bank asked 300 GLP-1 users about their consumption habits while taking the medication.</p><p>While 40 percent of survey respondents said they smoked cigarettes at least weekly before starting a GLP-1 treatment, that number fell to 24 percent after they started the treatment. Meanwhile, weekly e-cigarette usage dropped from 30 percent of respondents to 16 percent after they started taking a GLP-1.</p><p>Anecdotal evidence from patients and healthcare providers suggests GLP-1s can help users curb their addictions to tobacco.</p><p>While research has yet to prove a causal link between the two, clinical trials are currently underway to better understand the effects of GLP-1s on tobacco consumption.</p><p>Demand for GLP-1 drugs has grown rapidly recently. Morgan Stanley expects the global market to reach $105 billion by 2030. It projects that the weight-loss medications will be adopted by about 31.5 million U.S. people, or about 9 percent of the nation’s population, by 2035.</p> </div>
  206. </div>
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  209. </div>
  210. </section>
  211. </div>
  212. ]]></content:encoded>
  216. <post-id xmlns="com-wordpress:feed-additions:1">127618</post-id> </item>
  217. <item>
  218. <title>UKVIA Updates Suppliers on Changing U.K. Landscape</title>
  219. <link>https://tobaccoreporter.com/2024/04/25/ukvia-trains-suppliers-on-changing-u-k-landscape/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=ukvia-trains-suppliers-on-changing-u-k-landscape</link>
  221. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  222. <pubDate>Thu, 25 Apr 2024 15:40:00 +0000</pubDate>
  223. <category><![CDATA[Featured]]></category>
  224. <category><![CDATA[China]]></category>
  225. <category><![CDATA[UKVIA]]></category>
  226. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127637</guid>
  227.  
  228. <description><![CDATA[Director General Dunne educates Chinese vaping companies on Britain's complex regulatory environment. ]]></description>
  229. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127637" class="elementor elementor-127637">
  230. <section class="elementor-section elementor-top-section elementor-element elementor-element-72e5355 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="72e5355" data-element_type="section">
  231. <div class="elementor-container elementor-column-gap-default">
  232. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-81b7759" data-id="81b7759" data-element_type="column">
  233. <div class="elementor-widget-wrap elementor-element-populated">
  234. <div class="elementor-element elementor-element-d8b934c elementor-widget elementor-widget-image" data-id="d8b934c" data-element_type="widget" data-widget_type="image.default">
  235. <div class="elementor-widget-container">
  236. <figure class="wp-caption">
  237. <img loading="lazy" decoding="async" width="800" height="533" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/04/dunne.jpg?x70034" class="attachment-large size-large wp-image-100161" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/04/dunne.jpg?x70034 900w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/04/dunne-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2023/04/dunne-768x512.jpg?x70034 768w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">John Dunne (Photo: UKVIA)</figcaption>
  238. </figure>
  239. </div>
  240. </div>
  241. </div>
  242. </div>
  243. </div>
  244. </section>
  245. <section class="elementor-section elementor-top-section elementor-element elementor-element-1631e95 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="1631e95" data-element_type="section">
  246. <div class="elementor-container elementor-column-gap-default">
  247. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cb1940b" data-id="cb1940b" data-element_type="column">
  248. <div class="elementor-widget-wrap elementor-element-populated">
  249. <div class="elementor-element elementor-element-7280f61 elementor-widget elementor-widget-text-editor" data-id="7280f61" data-element_type="widget" data-widget_type="text-editor.default">
  250. <div class="elementor-widget-container">
  251. <p>John Dunne, director general of the U.K. Vaping Industry Association (UKVIA), traveled to China to educate vape companies on Britain’s changing regulatory landscape.</p><p>The U.K. will ban disposable e-cigarettes from April next year, and the Tobacco and Vapes Bill, which is currently working its way through Parliament, seeks to give ministers unprecedented powers to ban flavors and decide how vapes are packaged and sold.</p><p>Speaking at the headquarters of the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce (ECCC), Dunne shared his expert knowledge to conduct on-site compliance training to some of the world’s leading vape companies, including Elf Bar, SKE, ELUX, HQD, Hangsen, Greensound, Aspire, ICCPP, RELX, ALD, Uwell and Zinwi.</p><p>Describing the U.K. regulatory landscape as “complex and changeable,” Dunne said issues such as the protection of minors, battery recycling and environmental protection were high on the agenda of politicians, regulators and the general public.</p><p>“It is absolutely vital that all companies operating in the U.K. are fully compliant with all local laws and work at all times to show the industry in the best possible light,” he said in a <a href="https://www.ukvia.co.uk/ukvia-director-general-visits-china-to-train-some-of-the-worlds-leading-vape-companies-on-the-uks-regulatory-landscape/">statement</a>.</p><p>Dunne said the UKVIA would continue to work with the ECCC to help members comply with current requirements, prepare for future regulatory change and to foster global cooperation to promote the development and prosperity of the global vaping industry.</p> </div>
  252. </div>
  253. </div>
  254. </div>
  255. </div>
  256. </section>
  257. </div>
  258. ]]></content:encoded>
  262. <post-id xmlns="com-wordpress:feed-additions:1">127637</post-id> </item>
  263. <item>
  264. <title>Altria Reaffirms Guidance</title>
  265. <link>https://tobaccoreporter.com/2024/04/25/altria-reaffirms-guidance/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=altria-reaffirms-guidance</link>
  267. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  268. <pubDate>Thu, 25 Apr 2024 15:37:22 +0000</pubDate>
  269. <category><![CDATA[Featured]]></category>
  270. <category><![CDATA[Financial]]></category>
  271. <category><![CDATA[News This Week]]></category>
  272. <category><![CDATA[Altria Group]]></category>
  273. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127611</guid>
  274.  
  275. <description><![CDATA[The company’s businesses are on track to deliver against full-year plans, says CEO Gifford.]]></description>
  276. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127611" class="elementor elementor-127611">
  277. <section class="elementor-section elementor-top-section elementor-element elementor-element-e50b3ca elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="e50b3ca" data-element_type="section">
  278. <div class="elementor-container elementor-column-gap-default">
  279. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8810b2d" data-id="8810b2d" data-element_type="column">
  280. <div class="elementor-widget-wrap elementor-element-populated">
  281. <div class="elementor-element elementor-element-89633f1 elementor-widget elementor-widget-image" data-id="89633f1" data-element_type="widget" data-widget_type="image.default">
  282. <div class="elementor-widget-container">
  283. <figure class="wp-caption">
  284. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/02/altria-1024x683.jpg?x70034" class="attachment-large size-large wp-image-116521" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/02/altria-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/02/altria-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/02/altria-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/02/altria.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: Maurice Norbert</figcaption>
  285. </figure>
  286. </div>
  287. </div>
  288. </div>
  289. </div>
  290. </div>
  291. </section>
  292. <section class="elementor-section elementor-top-section elementor-element elementor-element-86c161b elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="86c161b" data-element_type="section">
  293. <div class="elementor-container elementor-column-gap-default">
  294. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-66333b2" data-id="66333b2" data-element_type="column">
  295. <div class="elementor-widget-wrap elementor-element-populated">
  296. <div class="elementor-element elementor-element-4924363 elementor-widget elementor-widget-text-editor" data-id="4924363" data-element_type="widget" data-widget_type="text-editor.default">
  297. <div class="elementor-widget-container">
  298. <p>Altria Group reported net revenues of $5.58 billion for the first quarter of 2024, down 2.5 percent from the comparable 2023 period. Revenues net of excise taxes declined 1 percent to $4.72 billion. The company reaffirmed its 2024 full-year adjusted diluted earnings-per-share guidance range of $5.05 to $5.17.</p><p>Altria attributed the income declines to lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment and the “all other” category.</p><p>Marlboro’s retail share of the total cigarette category was 42 percent, unchanged from the prior year. The brand’s share of the premium segment was 59.3 percent, an increase of 0.7 share points versus the prior-year period.</p><p>The company shipped 1 million Njoy devices and 10.9 million units of Njoy consumables during the quarter. Njoy held a 4.3 percent share of the U.S. mini-outlet and convenience channel segment.</p><p>“We made meaningful progress in pursuit of our vision, and our highly profitable traditional tobacco businesses continued to perform well in a challenging environment,” said Altria CEO Billy Gifford in a <a href="https://investor.altria.com/press-releases/news-details/2024/Altria-Reports-2024-First-Quarter-Results-Reaffirms-Full-Year-Guidance/default.aspx">statement</a>, referring to the company’s ambition “to responsibly lead the transition of adult smokers to a smoke-free future.”</p><p>“In spite of the absence of an effective regulatory environment, we saw continued early momentum from Njoy and believe our businesses are on track to deliver against full-year plans.</p><p>“We also demonstrated our continued commitment to maximizing the return on our investments and delivering strong shareholder returns through the sale of a portion of our investment in ABI and the subsequent expansion of our share repurchase program in March,” Gifford said, referring to Altria Group’s March <a href="https://tobaccoreporter.com/2024/03/14/altria-to-sell-part-of-its-anheuser-busch-stake/">sale of 35 million ordinary shares</a> of Anheuser-Busch InBev.</p> </div>
  299. </div>
  300. </div>
  301. </div>
  302. </div>
  303. </section>
  304. </div>
  305. ]]></content:encoded>
  309. <post-id xmlns="com-wordpress:feed-additions:1">127611</post-id> </item>
  310. <item>
  311. <title>U.K. Misleading Public</title>
  312. <link>https://tobaccoreporter.com/2024/04/25/u-k-misleading-public-about-relative-risk-pmi/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=u-k-misleading-public-about-relative-risk-pmi</link>
  314. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  315. <pubDate>Thu, 25 Apr 2024 14:55:00 +0000</pubDate>
  316. <category><![CDATA[Featured]]></category>
  317. <category><![CDATA[Harm Reduction]]></category>
  318. <category><![CDATA[heat-not-burn]]></category>
  319. <category><![CDATA[News This Week]]></category>
  320. <category><![CDATA[Philip Morris International]]></category>
  321. <category><![CDATA[United Kingdom]]></category>
  322. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127627</guid>
  323.  
  324. <description><![CDATA[Contrary to what the health department suggest, not all tobacco forms are equally harmful, says Mora Gilchrist.]]></description>
  325. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127627" class="elementor elementor-127627">
  326. <section class="elementor-section elementor-top-section elementor-element elementor-element-b2e599a elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="b2e599a" data-element_type="section">
  327. <div class="elementor-container elementor-column-gap-default">
  328. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-86ddfee" data-id="86ddfee" data-element_type="column">
  329. <div class="elementor-widget-wrap elementor-element-populated">
  330. <div class="elementor-element elementor-element-ec85ed1 elementor-widget elementor-widget-image" data-id="ec85ed1" data-element_type="widget" data-widget_type="image.default">
  331. <div class="elementor-widget-container">
  332. <figure class="wp-caption">
  333. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2020/09/gilchrist-horizontal-1024x683.jpg?x70034" class="attachment-large size-large wp-image-45023" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2020/09/gilchrist-horizontal-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2020/09/gilchrist-horizontal-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2020/09/gilchrist-horizontal-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2020/09/gilchrist-horizontal.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Mora Gilchrist (Photo: PMI)</figcaption>
  334. </figure>
  335. </div>
  336. </div>
  337. </div>
  338. </div>
  339. </div>
  340. </section>
  341. <section class="elementor-section elementor-top-section elementor-element elementor-element-302e244 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="302e244" data-element_type="section">
  342. <div class="elementor-container elementor-column-gap-default">
  343. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-08d90fb" data-id="08d90fb" data-element_type="column">
  344. <div class="elementor-widget-wrap elementor-element-populated">
  345. <div class="elementor-element elementor-element-88d8f2e elementor-widget elementor-widget-text-editor" data-id="88d8f2e" data-element_type="widget" data-widget_type="text-editor.default">
  346. <div class="elementor-widget-container">
  347. <p>Philip Morris International has accused the U.K. Department of Health of spreading misinformation about heated-tobacco products after a social media post warning that “all forms of tobacco are harmful,” reports <a href="https://www.thegrocer.co.uk/tobacco/tobacco-giant-accuses-government-of-spreading-misinformation/690649.article"><em>The Grocer</em></a><em>. </em></p><p>A tweet posted by the department in a thread of “myths” about vaping and tobacco contained false and misleading statements and risks driving consumers back to cigarettes or dissuading current smokers from making the switch to alternatives, according to the multinational.</p><p>“What hope do adult smokers have when seeking out accurate information on smoke-free products if it’s the government that’s spreading misinformation?” said PMI Chief Communications Officer Moira Gilchrist.</p><p>“All forms of tobacco are harmful, and there is no evidence that heated-tobacco products are effective for helping people to quit smoking,” the tweet stated.</p><p>“Laboratory studies show clear evidence of toxicity from heated-tobacco products. Unlike vapes, there is no evidence they are effective for helping people to quit smoking,” the post continues, citing a 2017 report by the Committee on Toxicity.</p><p>According to Gilchrist, such statements “distort the scientific evidence base” and “seriously misleads the public.”</p><p>While acknowledging that heated tobaccos are not risk-free, Gilchrist said it is misleading to imply that all forms of tobacco are equally harmful.</p><p>A Public Health England report in 2018 said that available evidence suggested that heated-tobacco products “may be considerably less harmful than tobacco cigarettes” but “more harmful than e-cigarettes.”</p><p><a href="https://www.thegrocer.co.uk/tobacco/tobacco-giant-accuses-government-of-spreading-misinformation/690649.article"><em>The Grocer</em></a></p> </div>
  348. </div>
  349. </div>
  350. </div>
  351. </div>
  352. </section>
  353. </div>
  354. ]]></content:encoded>
  358. <post-id xmlns="com-wordpress:feed-additions:1">127627</post-id> </item>
  359. <item>
  360. <title>KT&#038;G Sued</title>
  361. <link>https://tobaccoreporter.com/2024/04/24/former-researcher-sues-ktg-over-e-cigarette-patents/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=former-researcher-sues-ktg-over-e-cigarette-patents</link>
  363. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  364. <pubDate>Wed, 24 Apr 2024 15:35:06 +0000</pubDate>
  365. <category><![CDATA[Featured]]></category>
  366. <category><![CDATA[Intellectual Property]]></category>
  367. <category><![CDATA[News This Week]]></category>
  368. <category><![CDATA[KT&G]]></category>
  369. <category><![CDATA[South Korea]]></category>
  370. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127600</guid>
  371.  
  372. <description><![CDATA[A former researcher contends that he has been insufficiently compensated for inventing ‘the world’s first e-cigarette.’]]></description>
  373. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127600" class="elementor elementor-127600">
  374. <section class="elementor-section elementor-top-section elementor-element elementor-element-c974ddf elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="c974ddf" data-element_type="section">
  375. <div class="elementor-container elementor-column-gap-default">
  376. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9d48bdf" data-id="9d48bdf" data-element_type="column">
  377. <div class="elementor-widget-wrap elementor-element-populated">
  378. <div class="elementor-element elementor-element-47859f9 elementor-widget elementor-widget-image" data-id="47859f9" data-element_type="widget" data-widget_type="image.default">
  379. <div class="elementor-widget-container">
  380. <figure class="wp-caption">
  381. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/patent-1024x683.jpg?x70034" class="attachment-large size-large wp-image-127601" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/patent-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/patent-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/patent-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/patent.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: Ian O'Hanlon</figcaption>
  382. </figure>
  383. </div>
  384. </div>
  385. </div>
  386. </div>
  387. </div>
  388. </section>
  389. <section class="elementor-section elementor-top-section elementor-element elementor-element-28fdebf elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="28fdebf" data-element_type="section">
  390. <div class="elementor-container elementor-column-gap-default">
  391. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e9588ef" data-id="e9588ef" data-element_type="column">
  392. <div class="elementor-widget-wrap elementor-element-populated">
  393. <div class="elementor-element elementor-element-49a2ebb elementor-widget elementor-widget-text-editor" data-id="49a2ebb" data-element_type="widget" data-widget_type="text-editor.default">
  394. <div class="elementor-widget-container">
  395. <p>A former KT&amp;G Corp researcher has filed a lawsuit against his former employer claiming that he was insufficiently compensated for inventing “the world’s first e-cigarette” while working at the firm, reports the <a href="https://en.yna.co.kr/view/AEN20240424008800315">Yonhap News Agency</a>.</p><p>Kwak Dae-geun demands KRW2.8 trillion ($2 billion), reportedly the highest amount ever claimed by an individual in a South Korean legal action</p><p>According to the suit, Kwak joined the Korea Ginseng and Tobacco Research Institute in 1991 and began developing a tobacco-heating product in 2005.</p><p> In July that year, he registered his first patent for a prototype. In December 2006, he registered another patent for an upgraded version with a controllable heater.</p><p>Subsequently, he developed a full e-cigarette set, and registered a patent for part of the device in 2007 before leaving the company in 2010 as part of corporate restructuring.</p><p>After Kwak’s departure, KT&amp;G allegedly registered patents for some of his technologies without recognizing his contributions.</p><p>In addition to his claim about compensation, Kwak contends that a prominent rival global tobacco firm was able to commercialize its internal heating-based e-cigarette model in South Korea in 2017 due to the absence of overseas patents.</p><p>Kwak&#8217;s requested damages reflects his portion of the revenue KT&amp;G is expected to generate through Kwak&#8217;s patented technology during the 20-year patent term, as well as what KT&amp;G would have earned if it had registered patents overseas.</p><p>KT&amp;G counters that it has properly rewarded Kwan in the form of offering a technology advisory deal, and that Kwak had agreed not to raise any legal issues.</p><p>The firm also said the technologies invented by Kwak are not currently used in the products it is selling.</p><p>The e-cigarettes being sold by the global firm in question, meanwhile, did not involve technologies patented by Kwak, according to KT&amp;G, which also noted that the rival firm had already commercialized early-model heated tobacco-type products in 1998.</p> </div>
  396. </div>
  397. </div>
  398. </div>
  399. </div>
  400. </section>
  401. </div>
  402. ]]></content:encoded>
  406. <post-id xmlns="com-wordpress:feed-additions:1">127600</post-id> </item>
  407. <item>
  408. <title>Diluted Diligence</title>
  409. <link>https://tobaccoreporter.com/2024/04/24/diluted-diligence/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=diluted-diligence</link>
  411. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  412. <pubDate>Wed, 24 Apr 2024 12:22:19 +0000</pubDate>
  413. <category><![CDATA[Also in TR]]></category>
  414. <category><![CDATA[News This Week]]></category>
  415. <category><![CDATA[Sustainability]]></category>
  416. <category><![CDATA[European Union]]></category>
  417. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127577</guid>
  418.  
  419. <description><![CDATA[Even in its watered-down version, the recently approved EU supply chain law will impact tobacco companies. ]]></description>
  420. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127577" class="elementor elementor-127577">
  421. <section class="elementor-section elementor-top-section elementor-element elementor-element-d7e82ea elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="d7e82ea" data-element_type="section">
  422. <div class="elementor-container elementor-column-gap-default">
  423. <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-35e7010" data-id="35e7010" data-element_type="column">
  424. <div class="elementor-widget-wrap elementor-element-populated">
  425. <div class="elementor-element elementor-element-3e442d0 elementor-widget elementor-widget-image" data-id="3e442d0" data-element_type="widget" data-widget_type="image.default">
  426. <div class="elementor-widget-container">
  427. <figure class="wp-caption">
  428. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/eu-1-1024x683.jpg?x70034" class="attachment-large size-large wp-image-127578" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/eu-1-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/eu-1-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/eu-1-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/eu-1.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: kittyfly</figcaption>
  429. </figure>
  430. </div>
  431. </div>
  432. </div>
  433. </div>
  434. </div>
  435. </section>
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  442. <h2><em>Even in its watered-down version, the recently approved EU supply chain law will impact tobacco companies.</em></h2><p>By Stefanie Rossel</p><p>Good things come to those who wait, but sometimes they come only as a compromise. On March 15, the European Council finally approved the EU Corporate Sustainability Due Diligence Directive (CSDDD), which was scheduled to be adopted by the European Parliament on April 24, thereby passing it into EU law.</p><p>Commonly referred to as the EU Supply Chain Law, this directive, which was first proposed in February 2022, is meant to establish a common baseline across the trade bloc’s member states. As binding EU law, it requires companies to identify, prevent and mitigate adverse impacts on human rights and the environment throughout their supply chains. If implemented as anticipated, the CSDDD would impose substantial responsibilities on companies, including those operating in the tobacco business.</p><p>The version the European Council agreed upon this March, though, is a significantly watered-down version of the original draft, reducing the number of affected companies in Europe by 70 percent and allowing for several exceptions. The amendments include:</p><ul><li>Reduced scope of application: Instead of companies with 500 employees and a turnover of €150 million ($162 million) as initially envisaged, the directive in its current form would be applicable to enterprises with 1,000 employees and a turnover of at least €450 million.</li><li>Deletion of the high-risk approach: The plan to gradually integrate companies that don’t meet the criteria of the scope of application but operate in a high-risk sector has been eliminated from the draft law.</li><li>Introduction of a staggered implementation of the directive: Depending on their size and turnover, companies now have between three years and five years to make their firms compliant with the CSDDD.</li><li>Civil liability: The liability clause included in the CSDDD will be marginally adjusted to allow member states more flexibility in transposing the directive into national law. Generally speaking, however, the CSDDD will still enable injured parties to sue European companies for breaches alleged to have occurred across their supply chains.</li></ul><p>“The overall EU objectives of addressing global human rights issues, environmental concerns and, more recently, climate change can certainly not be criticized,” says Abrie du Plessis, an associate at the South African Trade Law Center in Cape Town and a close observer of EU regulation who during previous work in the tobacco industry followed the development of the World Health Organization Framework Convention on Tobacco Control (FCTC) and the development of the 2014 EU Tobacco Products Directive.</p><p>“As always, however, real challenges and obstacles can emerge from the details, and it seems fair to say that major companies operating in the EU already face what may be described as a flood of legislative initiatives on the issues now also covered by the CSDDD,” says du Plessis. “The task which lies ahead, which is to comply with a range of general, specific and sometimes overlapping legislative initiatives, is formidable.”</p> </div>
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  454. <h3>Building on Other Laws</h3><p>Even in its weakened form, the CSDDD will likely affect all the major tobacco manufacturers operating in the EU in some way due to their turnover and number of employees. Du Plessis thinks that they are well placed even though, as always, the specifics of the tobacco industry must be considered.</p><p>The CSDDD comes on the heels of the EU Corporate Sustainability Reporting Directive (CSRD), which was adopted in December 2022 and entered into force on Jan. 5, 2023. This directive requires all large companies and all listed companies, except listed micro-enterprises, to disclose information on what they see as the risks and opportunities arising from social and environmental issues and on the impact of their activities on people and the environment. This is supposed to help investors, civil society organizations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the European Green Deal, which is intended to transform the EU into a climate-neutral regional integration organization by 2050.</p><p>“These two directives are closely related, and some of the steps already being taken by companies to ensure CSRD compliance are also required by the CSDDD,” says du Plessis. “Some progress toward CSDDD compliance is therefore already being made.”</p><p>In some instances, he adds, there are also other EU laws that already address—or will in due course address—specific environmental issues. “Relevant examples are those on the sustainable use of plant protection agents, on single-use plastics and on deforestation,” says du Plessis. “Such EU legislation can either be directly applicable to tobacco products or can provide useful guidance even if it is not directly applicable. Already complying with measures clearly prescribed in other EU legislation may reduce the CSDDD compliance burden.”</p> </div>
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  460. <section class="elementor-section elementor-top-section elementor-element elementor-element-47818d5 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="47818d5" data-element_type="section">
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  465. <div class="elementor-widget-container">
  466. <figure class="wp-caption">
  467. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/macedonia-1024x683.jpg?x70034" class="attachment-large size-large wp-image-127580" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/macedonia-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/macedonia-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/macedonia-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2024/04/macedonia.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">One challenge for manufacturers is that they may be held liable for circumstances that are outside their immediate control. (Photo: Taco Tuinstra)</figcaption>
  468. </figure>
  469. </div>
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  474. </section>
  475. <section class="elementor-section elementor-top-section elementor-element elementor-element-75e439b elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="75e439b" data-element_type="section">
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  480. <div class="elementor-widget-container">
  481. <h3>News Tasks</h3><p>Nevertheless, the upcoming directive will bring about a range of challenges for tobacco companies. Among other things, manufacturers may be held liable for circumstances that are out of their immediate control and which, experts argue, are probably better handled by policymakers in the respective countries covered by the supply chain in question.</p><p>“The CSDDD requires companies to identify potential and real adverse environmental and human rights impacts arising from their own operations, subsidiaries and business relationships,” says du Plessis. “They must take measures to prevent or mitigate any potential impacts they identify as well as end or minimize any real impacts. Failure to comply and resultant may lead to liability and financial penalties.</p><p>“An example could be the issue of child labor, and it has become an established view that the purchasers of commodities do in fact have some ability to influence the behavior of their suppliers. The tobacco industry has certainly done a lot of work in this area, but the question going forward will of course be whether this meets expectations or will need to be revisited. It is quite correct to observe that national policymakers also have a key role to play in this debate.”</p><p>According to du Plessis, the expectation that manufacturers assume responsibility for the behavior of their suppliers has become a fact of life. “The basis for this approach is the real or perceived control which manufacturers exercise over players in their supply chains,” he says. “There are of course debates to be had as to what is in fact possible and workable, and the issues will hopefully be addressed through having constructive debates about CSDDD during its transposition and implementation phases.”</p> </div>
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  493. <img loading="lazy" decoding="async" width="300" height="375" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2016/11/duplessis-web-1.jpg?x70034" class="attachment-large size-large wp-image-25150" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2016/11/duplessis-web-1.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2016/11/duplessis-web-1-240x300.jpg?x70034 240w" sizes="(max-width: 300px) 100vw, 300px" /> </div>
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  501. <blockquote class="elementor-blockquote">
  502. <p class="elementor-blockquote__content">
  503. “Some corporate social responsibility activities for which tobacco companies were often criticized in the past are now actually required by law.” </p>
  504. <footer>
  505. <cite class="elementor-blockquote__author">Abrie du Plessis, associate, South African Trade Law Center</cite>
  506. </footer>
  507. </blockquote>
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  520. <h3>Isn’t It Ironic?</h3><p>The CSDDD will also require companies to adopt a transition plan. Under the new law, companies will be required to adopt transition plans for climate change mitigation and ensure that their business model and strategy are compatible with the transition to a sustainable economy. These transition plans should be reviewed every 12 months and describe in detail the progress the company has made toward achieving its targets.</p><p>For the tobacco industry, this represents a complicated part of the curing and deforestation debate, according to du Plessis. “The interesting angle here is that burning of wood biomass is generally regarded as carbon neutral and in many instances as sustainable.”</p><p>Du Plessis says there are more bits of irony in the EU laws prioritizing sustainability. “The first is that some corporate social responsibility activities for which tobacco companies were often criticized in the past are now actually required by law,” he points out. “The second is the false narrative that Article 5.3 of the FCTC should apply to regulatory processes such as these. Neither the text of the FCTC nor that of its nonbinding guidelines support this view, and both the CSRD and the CSDDD make interaction with the industry involved a necessity rather than an option.”</p><p>“Leading cigarette companies have a long history of proactively addressing many of the issues potentially covered by the CSDDD on a voluntary basis,” says du Plessis. “Participating in both the CSRD and the CSDDD processes will certainly put what they have achieved so far to the test. If done properly, CSRD and CSDDD can certainly contribute to progress in the areas identified, but given significant legal uncertainties, the preferred point of departure should be constructive dialogue rather than penalties and sanctions.”</p> </div>
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  538. <div class="elementor-testimonial__text">
  539. <b>Stefanie Rossel</b> is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany. </div>
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  543. <img decoding="async" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2020/02/stefanie_rossel-small.jpg?x70034" alt="">
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  563. <item>
  564. <title>Sampoerna Profit Jumps by One Third</title>
  565. <link>https://tobaccoreporter.com/2024/04/24/sampoerna-profit-jumps-by-one-third/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=sampoerna-profit-jumps-by-one-third</link>
  567. <dc:creator><![CDATA[Taco Tuinstra]]></dc:creator>
  568. <pubDate>Wed, 24 Apr 2024 11:34:55 +0000</pubDate>
  569. <category><![CDATA[Featured]]></category>
  570. <category><![CDATA[Financial]]></category>
  571. <category><![CDATA[News This Week]]></category>
  572. <category><![CDATA[Indonesia]]></category>
  573. <category><![CDATA[Sampoerna]]></category>
  574. <guid isPermaLink="false">https://tobaccoreporter.com/?p=127555</guid>
  575.  
  576. <description><![CDATA[Growth was driven in part by a revival of Indonesia’s hand-rolled kretek segment. ]]></description>
  577. <content:encoded><![CDATA[ <div data-elementor-type="wp-post" data-elementor-id="127555" class="elementor elementor-127555">
  578. <section class="elementor-section elementor-top-section elementor-element elementor-element-b9a4259 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="b9a4259" data-element_type="section">
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  583. <div class="elementor-widget-container">
  584. <figure class="wp-caption">
  585. <img loading="lazy" decoding="async" width="800" height="534" src="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2022/08/indonesia-1024x683.jpg?x70034" class="attachment-large size-large wp-image-88518" alt="" srcset="https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2022/08/indonesia-1024x683.jpg?x70034 1024w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2022/08/indonesia-300x200.jpg?x70034 300w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2022/08/indonesia-768x512.jpg?x70034 768w, https://files.tobaccoreporter.com/wp-content/uploads/sites/2/2022/08/indonesia.jpg?x70034 1500w" sizes="(max-width: 800px) 100vw, 800px" /> <figcaption class="widget-image-caption wp-caption-text">Photo: Taco Tuinstra</figcaption>
  586. </figure>
  587. </div>
  588. </div>
  589. </div>
  590. </div>
  591. </div>
  592. </section>
  593. <section class="elementor-section elementor-top-section elementor-element elementor-element-8ca9ff4 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="8ca9ff4" data-element_type="section">
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  597. <div class="elementor-element elementor-element-c1279e0 elementor-widget elementor-widget-text-editor" data-id="c1279e0" data-element_type="widget" data-widget_type="text-editor.default">
  598. <div class="elementor-widget-container">
  599. <p>Net profit of Sampoerna grew 28 percent to IDR8.1 trillion ($501.11 million) in 2023. With shipments of 83.4 billion cigarettes, the company remained the undisputed leader in Indonesia, claiming a market share of 28.6 percent.</p><p>&#8220;2023 marked a year of return to robust profitable growth, with Sampoerna reaching significant milestones for advancing scientifically substantiated smoke-free products, increasing its investment and employment in Indonesia, and generating strong multiplier effects, in line with the country’s priority to enhance down-streaming.” said Sampoerna President Director Vassilis Gkatzelis in a <a href="https://www.sampoerna.com/en/media-center/details?articleId=2023-marked-a-year-of-return-to-robust-profitable-growth-for-sampoerna-and-the-company-welcomes-new-president-director">statement</a>.</p><p>Sampoerna’s performance was driven in part by the recovery of the hand-rolled kretek cigarette (SKT) segment in Indonesia. After declining for many years, its share rose from 17 percent of overall tobacco sales in 2019 to 28 percent in 2023, boosted by the government’s favorable tax treatment of this labor-intensive sector.</p><p>In early 2024, Sampoerna <a href="https://tobaccoreporter.com/2024/04/03/sampoerna-opens-third-party-factory/">added SKT production facilities</a> and third-party operators, creating employment for tens of thousands of new workers.</p><p>The company has also been developing its smoke-free portfolio in Indonesia. In 2023, the company <a href="https://tobaccoreporter.com/2023/01/18/pmi-inaugurates-heets-factory-in-indonesia/">inaugurated a dedicated factory</a> in Karawang, near Jakarta, which supplies both the domestic market and customers in the Asia Pacific region.</p><p>In the Jakarta urban area, the company’s IQOS tobacco-heating product reached a market share of 3.5 percent in the fourth quarter of 2023, an increase of 2 points from the fourth quarter of 2022.</p><p>To date, Sampoerna has invested $300 million in smoke-free products in Indonesia.</p><p>Gkatzelis will leave Sampoerna in May and<a href="https://tobaccoreporter.com/2024/04/23/ivan-cahyadi-to-lead-sampoerna/"> join Philip Morris International&#8217;s executive leadership team</a> as president of the East Asia, Australia and PMI duty-free region.</p><p>His successor at Sampoerna is Ivan Cahyadi.</p> </div>
  600. </div>
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  605. </div>
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