Tobacco International April/May 2020 by Tobacco International magazine

tobaccointernational.com

The authority on the tobacco industry since 1886 April/May 2020

Reason for Hope

Tobacco Taxation Relief in Turkey A VERY ACTIVE SPRING FOR ALTRIA GROUP’S NEW CEO

DISAPPOINTING SIX MONTH RESULTS FOR IMPERIAL

A COVID-19 VACCINE COULD BE BORN IN KENTUCKY

ARE ILLICIT SALES UP IN ARGENTINA?

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Specialists in oriental tobaccos

Plovdiv, Bulgaria Katerini, Greece Bitola, Macedonia Geneva, Switzerland Izmir, Turkey Durham, United States of America

April/May 2020

TI TABLE OF CONTENTS 16

A LOCKWOOD PUBLICATION

tobaccointernational.com

The authority on the tobacco industry since 1886 April/May 2020

28 20 Reason for Hope

Tobacco Taxation Relief in Turkey ARE ILLICIT SALES UP IN ARGENTINA?

A VERY ACTIVE SPRING FOR ALTRIA GROUP’S NEW CEO

DISAPPOINTING SIX MONTH RESULTS FOR IMPERIAL

A COVID-19 VACCINE COULD BE BORN IN KENTUCKY

TI_Apr-May20_CVR1_02.indd 1

products has been canceled as a means to curb inflation. By Bob Crew.

24 It’s Been a Very Active Spring for Altria Group. New CEO will have a handful this year with, among other things, legal review of the JUUL deal and the application for the new nicotine. From company documents.

16 Are Illicit Sales on the Way Up in Argentina? The decline of purchasing power of Argentinians has forced them to seek cheaper tobacco alternatives…and that means contraband. By Eugene Gerden. Turkey. An expected tax hike on tobacco

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ON THE COVER The future for tobacco is cloudy everywhere, but it might just have improved a bit in Turkey, thanks to a favorable policy on taxation. See Bob Crew’s analysis on page 20. Photo courtesy of Socotab.

25 Corporate Updates. Disappointing

FEATURES

20 Good News on Tobacco Taxation in

5/27/20 6:34 PM

Results in Past Six Months for Imperial. From company documents and general media. Imperial reduced its dividend by a third in light of its £14 billion debt.

26 The Best Way to Recover from the Pandemic. By Marian Salzman, PMI.

Imperial sells its Premium Cigars.

DEPARTMENTS

28 BAT Goes to Kentucky to Develop a

Editorial

Vaccine. A research lab in Owensboro, Ky., could help solve the most trying disease problem of our time.

10 TI Digest 30 Leaf News 34 Calendar, Advertiser Index To reuse Tobacco International material, ISSN: 0049-3945 (print), ISSN: 2331-8481 (online), access www.copyright.com for the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit providing various licenses and registration.

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spirit

TI EDITORIAL

PUBLISHER & PRESIDENT

Robert M. Lockwood EDITOR-IN-CHIEF

ON ORIENTAL, ALTRIA AND A RESTRUCTURING IN ARGENTINA

Christopher Bickers

There is some “Good News on Tobacco Taxation in Turkey.” It seems the leaders of that country have decided to forego an automatic annual tax hike on tobacco products as a means to curb inflation. Read Correspondent Bob Crew’s analysis of the situation, including updates on Bulgarian, Greek and Macedonian production of Oriental leaf, beginning on page 20. In other features this month: • Altria has a new CEO after the previous one was struck by COVID-19. Billy Gifford took over in April for Howard Willard who, recovering from the disease, elected to retire after 28 years with the company. Gifford has had plenty to do already and will have plenty more as a defense of the company’s investment in JUUL and an application for its new nicotine pouch product must both be carried forward. See details on page 22 in the story “It’s Been a Very Active Spring for Altria Group.” • PMI Exec Marian Salzman gives her opinion on “The Best Way to Recover from the Pandemic” on page 26. • Check out the progress BAT has made in achieving a vaccine to combat the pandemic in “BAT Goes to Kentucky to Develop a COVID-19 Vaccine.” Nothing could be better news than success for BAT in this area, because though the degree is debatable, it is clear that the virus is negatively affecting cigarette marketing in the United States. • It is certainly affecting cigarette marketing in Argentina. But still more of a problem there is the decline in purchasing power for Argentinians leading to a trend toward cheaper cigarettes, increasing taxes, and ever-growing proportion of illegal cigarettes in national consumption. For a thoughtful analysis of all this, see “Are illicit sales up in Argentina?” by Eugene Gerden on page 16. And finally, apropos of Argentina, a few months ago I wrote a short report on a step in the restructuring there of Pyxus and its Argentine affiliate AOTA. I got the facts right but it’s been pointed out that I didn’t put it in quite the right context. So let me take just a moment to correct things, as it were. This might seem like a small development—concentration of leaf processing at two companies at the plant of one—but I take it as an indication that there is a belief that Argentina could soon play a bigger part in the world leaf market. Here is how I would describe the situation now: Pyxus said then that its Argentine affiliate—Alliance One Tobacco Argentina—will relocate its leaf processing from its long-time site in El Carril in the northwestern province of Salta to PMI’s Argentine affiliate at Rosario de Lerma, also in Salta. AOTA’s buying station and its packed-products warehouses will remain operational in El Carril and it will continue to contract with growers, primarily Salta and Jujuy. One of the goals of this restructuring is to reinforce its commercial relationship with PMI through the supply of flue-cured and burley. But most important, combining Pyxus/AOI’s Argentine leaf operations will help to improve overall efficiency and strengthen price competitiveness, said Alex Strohschoen, AOI president. “It will also help to enhance the sustainability of the Argentinian tobacco market due to anticipated increases in exports and improved competitiveness on the global market,” he added.

Melinda Ayala

PRODUCTION COORDINATOR

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CONTRIBUTORS INTERNATIONAL TOBACCO

Dr. Iqbal Lambat (ISTANBUL,

TURKEY)

ECONOMIC COLUMNIST

John Parker (RICHMOND,

VIRGINIA)

REGIONAL

Mumtaz Ahmad (ISLAMABAD, PAKISTAN) Diamantis Chras (PIRAEUS, GREECE) Bob Crew (LONDON, ENGLAND) Eugene Gerden (MOSCOW, RUSSIA) Guido Jungbluth (SANTA CRUZ DO SUL, BRAZIL) Manfred Körner (HAMBURG, GERMANY) M. Rifaat Naguib (CAIRO, EGYPT) Vladislav Vorotnikov (MOSCOW, RUSSIA)

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— Christopher Bickers, Editor-In-Chief Volume 20, No. 3 TOBACCO INTERNATIONAL (ISSN 0049-3945 print; ISSN 2331-8481 online), established in 1886, is published eight times a year, with four monthly issues (March, June, September, and December) and four combined issues (January/February, April/May, July/August, and October/November) plus a directory issue published in January of each year by Lockwood Trade Journal Co., Inc., 3743 Crescent Street, Second Floor, Long Island City, NY 11101, USA. Officers: Robert M. Lockwood, president and treasurer. Subscription rates: USA— US$49 per year, US$74 for two years; US$109 for three years. Canada—US$59 per year, US$89 for two years, US$134 for three years. All other countries: International Surface Mail—US$89 per year; US$139 for two years; US$199 for three years. International AirMail—US$129 per year; US$199 for two years; US$289 for three years. Single copy price: US$15. Annual Buyers’ Guide & Directory: US$45, plus shipping. Copyright ©2020 by Lockwood Publications, Inc. The contents of TOBACCO INTERNATIONAL may not be reprinted except by permission. POSTMASTER: Send address changes to TOBACCO INTERNATIONAL, P.O. Box 424, Congers, NY 10920-0430, USA.

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TI DIGEST Left: The Tabacalera de Garcia S.A.S. factory in La Romana, Dominican Republic. Photo: Mstyslav Chernov, CC BY-SA 3.0

and assets across multiple geographies, and we would like to thank everyone involved for working so hard to get the deal agreed. “This disposal reinforces our strategic ambition of becoming a leaner and more agile organization, and the proceeds will realize value for shareholders by reducing debt as part of our ongoing focus on active capital management. “We believe we have found the right long-term owners for Premium Cigars; they are committed to investing in the business to maximize future growth opportunities and are well positioned to further develop operations internationally.” The sale will take place in two transactions documented under two sale agreements, a statement for the company said: • Gemstone Investment Holding Ltd will acquire Premium Cigar USA for

a total consideration of €185 million (£162 million). This transaction is subject to the fulfillment of certain conditions, including customary antitrust and other regulatory clearances. • Allied Cigar Corporation, S.L will acquire Premium Cigar Rest of World (RoW) for a total consideration of €1,040 million (£912 million). This transaction is subject to the fulfillment of certain conditions, including customary antitrust and other regulatory clearances. The transactions are expected to close in the third quarter of calendar year 2020. The Premium Cigar RoW transaction includes the sale of the Dominican Republic handmade premium cigar factory Tabacalera de Garcia (below). It is expected to close in 2021. Of the Premium Cigar RoW transaction consideration, €88 million (£77 million) will be deferred for 12 months from close and €69 million (£61 million) will be deferred and contingent upon transfer of the Dominican Republic factory. The Premium Cigar business contributed £80 million of profit before tax in the year to 30 September 2019. The business assets that are wholly owned as well as investments in a number of joint ventures, which results in a different accounting treatment for the two asset types: The wholly owned assets represented £226 million of net revenue and £30 million of adjusted operating profit of the Africa, Asia and Australasia division for the year to 30 September 2019.

port in the Halfwheel cigar blog. Sc a nd i nav ia n Tobacco Group (STG) is selling the remaining inventories of Balmoral and San Pedro de Macorís, both produced by STG’s new subsidiary Royal Agio Cigars. Once that inventory is gone, it will mark the end

of Balmoral in the U.S. But the brand name could be used for products outside of the U.S., including premium cigars. The San Pedro de Macorís brand, which debuted in 2018, will also exit the U.S. market once inventories are sold,

UNITED KINGDOM Imperial Brands Agrees to Sale of Premium Cigar Business bristol, u.k.—Imperial Brands has agreed to the sale of its worldwide premium cigar businesses to investment consortia of individual investors in two distinct transactions. The total consideration will be €1,225 million (£1,074 million), according to a statement from the company. The disposal reinforces Imperial’s focus on simplifying its business and realizing value for shareholders. After adjusting for tax and other costs, the disposals are expected to realize net cash proceeds of around €1,094 million (£958 million). The proceeds will be used for debt reduction. Joint Interim Chief Executives Dominic Brisby and Joerg Biebernick said, “We are delighted to be able to announce the sale of Premium Cigars in the current challenging global environment. It has been a complex transaction involving joint venture partners

DENMARK STG Ends Premium Cigar Sales of Agio Brands in U.S. copenh agen —T he Sc a nd i nav ia n Tobacco Group (STG) has elected to end sales of its two premium cigar lines in the United States, according to re-

10 TOBACCO INTERNATIONAL APRIL/MAY 2020

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UNITED STATES Pandemic Puts Graphic Warnings on Hold washington, d.c.—The U.S. Food and Drug Administration and major tobacco companies asked a Texas federal judge in May to delay the implementation of the agency’s pending requirement for graphic warning labels on cigarette packs because of disruptions caused by the coronavirus pandemic. The FDA asked the court to push back the effective date of the agency’s new cigarette warnings by 120 days, saying the extension would not affect the merits of the lawsuit filed by R.J. Reynolds and other tobacco companies alleging the “emotionally charged” required labels violate the First Amendment. “Defendants remain fully committed to the rule and would not agree to postpone its effective date but for the extraordinary disruptions caused by the COVID-19 pandemic,” the FDA and the companies said in a joint motion. though it will continue to be available in other parts of the world. The demand for STG product categories has historically been relatively resilient to major macroeconomic developments, a late April statement from STG said. “However, in the short to medium-term, changes in customer and consumer behavior following the outbreak of COVID-19 are impacting demand for our products across markets,” said CEO Niels Fredericksen. “Currently, net sales have been negatively impacted by the international travel restrictions, the closure of small stores and restrictions on out-of-home activities across many markets.” Volumes in STG’s North American online operation have experienced a positive impact from changed consumer behavior while the wholesale business in North America has experienced a negative impact on net sales. “We have experienced temporary shut-downs of our factories in Honduras, Sri Lanka and the Dominican

Republic,” he said. “But in all countries a gradual restart of production has now taken place.” To protect the continued financial health of the business, STG is constantly striving to reduce costs. Lower consumption and unexpected temporary close-downs of factories which could potentially cause out-ofstock situations are key risks to financial performance. In addition, STG’s ongoing focus on implementing new safety protocols has added constraints in the distribution across our commercial operations, particularly the warehousing operation in North America.

JAPAN Strong First Quarter Results for JT tokyo—JT’s consolidated first quarter results were strong, said Masamichi Terabatake, President and Chief Executive Officer of the JT Group. It’s been “driven by robust growth in the international tobacco business, which had a strong first quarter and significant favorable pricing gains compared to the previous year. As of the first quarter, there was limited impact to JT’s business following the COVID-19 outbreak, he said. Under the circumstances, JT elected not to re-

12 TOBACCO INTERNATIONAL APRIL/MAY 2020

Masamichi Terabatake, JTI

vise its earlier 2020 forecast. “Given that the global impacts of COVID-19 are becoming prevalent from April onwards, we will continue to closely monitor how the pandemic and the currency headwinds impact our business and financials,” said Terabatake. Revenue increased 2.8 percent to JPY 519.6 billion in the first quarter, he said.

MALAWI Pandemic Affects Market? lilongwe—A new leaf buyer from Zimbabwe, Voedsel Tobacco International, had not arrived in Lilongwe by the end of the first month of sales COVID-19 restrictions prevented them crossing the border into Malawi. And Voedsel is not by any means the only participants barred from the auctions. Farmers are almost entirely absent from sales in order to maintain “social distance.” And they are not happy about it. There have been numerous complaints that individual farmers have not gotten satisfactory treatment because they weren’t present to represent their own interests. The national tobacco commission is seeking solutions to both problems. The market had been characterized in that first month by 13 percent higher

prices than in the same time period as a year ago. Nevertheless, farmer rejections were running around 40 to 50 percent at that time, said Tobacco Commission CEO Kayisi Sadala in the publication Malawi Voice. “The rejection rate on the floors is high because competition is not as high as we had envisioned,” he said. “Most buyers concentrate on securing their contracted tobacco so that they might recoup their loans before participating fully on the auction.” He hoped rejections by farmers would soon drop to 25 percent.

SWEDEN Swedish Match Announces Organizational Changes stockholm—Tom Hayes w i l l become President of the U.S. Division of Swedish Match effective August 1. He will replace Rich Flaherty, who is retiring. Tom has served since 2018 as Group CFO. He joined Swedish Match in 2006 and was previously the CFO for the US Division. Anders Larsson will be appointed CFO of the Swedish Match Group. Anders joined Swedish Match in 2008 and his current position is Vice President, Group Finance. “Tom spent most of his time at the company with the US Division and has been a great contributor these past few years in his current role,” said President

Tom Hayes, Swedish Match U.S. Division

and CEO Lars Dahlgren. “Anders has been working closely with Tom since 2018 and is well prepared for his move to the CFO role.”

UNITED STATES JUUL Reduces Staff san francisco—A one third cut in staff reportedly lies ahead for Juul Labs, a report in the Wall Street Journal said early in May. “As part of our ongoing reset, we are constantly evaluating our operations and the best way to position our company for the long term,” the journal quoted a Juul spokesperson as saying. “We remain focused on earning the trust of our stakeholders to advance the potential for harm reduction for adult smokers while combating underage use.” The cuts are not related to the coronavirus. They seem to be part of a substantial restructuring at Juul which reportedly includes a move of its headquarters to Washington, D.C. “The e-cigarette maker seeks to repair its relationship with regulators and distance itself from Silicon Valley’s growth-at-all-costs culture,” said the Journal, citing sources familiar with the matter. It is also closing some U.S. offices and reducing activity in Europe and Asia. In May, it announced it would withdraw from South Korea.

Tobacco “Alternative” Raises $9.75 million chicago—Black Buffalo Inc. has closed a $9.75 million growth capital raise including key strategic investors Pendyne Capital, Watchfire Ventures and Open Pantry Food Marts. Black Buffalo plans to use this capital to expand its marketing presence, upgrade its manufacturing capacity, increase its online distribution, and launch into convenience stores and physical retail outlets nationwide. To date, adult consumers age 21 and older have been able to purchase Black

Buffalo’s smokeless tobacco alternative products online at BlackBuffalo.com. Black Buffalo was founded in 2015, and now has eight products--five longcut and three pouches varieties, all of which contain pharmaceutical-grade nicotine but no tobacco leaf or tobacco stem. “Our guiding principle has always been that dipping is about much more than just nicotine delivery,” says co-founder and President Mark Hanson. “It’s also about the ritual: from the crack of the seal, to the look and feel of the high-definition embossed tin, to the rich, moist flavor of that first pinch or pouch. We believe that Black Buffalo offers the first true alternative for adult consumers looking to make the switch from traditional dip.”

USITC to Investigate Heat Not Burn Importation washington—The U.S. International Trade Commission (USITC) has voted to institute an investigation of Altria’s sale of IQOS tobacco heating articles which are supplied by Philip Morris International. The investigation is based on an April 9 complaint filed by RAI Strategic Holding,; R.J. Reynolds Vapor, and R.J. Reynolds Tobacco, all of Winston-Salem, NC, on April 9, 2020. The complaint alleges violations of the Tariff Act of 1930 and requests that the commission issue a limited exclusion order and cease and desist orders. The ITC said it had not yet made

APRIL/MAY 2020 TOBACCO INTERNATIONAL

TI DIGEST any decision on the merits of the case and would hold a hearing to make its final determination as soon as is practicable.

Fontem Submits Premarket Applications for myblu charlotte, n.c.—Fontem US has submitted Premarket Tobacco Product Applications (PMTAs) to the U.S. Food and Drug Administration seeking authorization for the continued marketing of a wide range of its myblu electronic vaping products, according to its parent company Imperial Brands. Fontem US’s blu products play a fundamental role in the company’s goal of providing adult smokers with options that are potentially less harmful than combustible tobacco products. “We agree that the electronic vaping industry should be held to the highest product and marketing standards while providing adult smokers with alternative products that could serve the interest of the public health,” said Antoine Blonde, president of Fontem US. “Fontem US looks forward to working with the FDA as the agency develops and enforces an evidence-based regulatory policy.” The PMTA submissions include data from a comprehensive range of laboratory and clinical scientific studies, including product analyses, behavioral data, nonclinical health risk information, and information on the impact to both users and non-users of tobacco products. Fontem U.S. believes the evidence provided shows that blu electronic vaping products could play a role in the protection of the public health. Fontem U.S. now awaits the FDA’s review of the applications. It will provide additional information sought by the agency.

Universal Appoints Executive for Global Ventures richmond, va.—J. Patrick O’Keefe has been appointed Senior Vice President of

14 TOBACCO INTERNATIONAL APRIL/MAY 2020

Patrick O’Keefe, Universal Corp.

Universal Global Ventures Inc., a wholly-owned non-tobacco subsidiary of Universal Corporation. Global Ventures holds FruitSmart, Universal’s recently acquired specialty fruit and vegetable ingredient processor serving global markets. In this newly created role, O’Keefe will oversee the Company’s nascent plant-based-ingredient platform and the Company’s previously stated efforts to continue to build out a broader agri-products services platform. George C. Freeman III, Chairman, President and Chief Executive Officer of Universal Corporation commented that “with almost three decades of food and beverage industry experience, Patrick brings skills that are directly relevant to our ongoing strategic and growth initiatives in adjacent industries.” Most recently, O’Keefe served as Chief Operating Officer for Allen Flavors, a flavor manufacturer to the food and beverage industry. From 2015 to 2018, O’Keefe served as Chief Executive Officer of the Americas for Döhler Group, a global producer, marketer and provider of integrated solutions for the food and beverage industry. From 2007 to 2015, he served as President of Finlay Tea Solutions US, Inc. and then Chief Executive Officer of Finlays Extracts & Ingredients, both subsidiaries of James Finlay International, a global supplier of tea, coffee and botanical extracts.

ARGENTINA

A farmer carefully sorts his sun-cured tobacco as part of his market preparation.

16 TOBACCO INTERNATIONAL APRIL/MAY 2020

Are Illicit Sales on the Way Up in Argentina? Anti-smoking bias on the government’s part and heavy subsidization of leaf production leave the industry in a quandary. By Eugene Gerden, TI Correspondent ales of illicit tobacco products may reach record levels i n A rgent ina t his yea r t ha n k s to t he ever deepen i ng econom ic recession in the country, caused by the ongoing spread of COVID-19, and a shift of local customers to cheaper c i g a r e t t e s , a c c ord i ng t o r e c e nt statements made by local tobacco producers and business analysts. The decline of purchasing power of Argentinians this year has already forced them to shift to seek cheaper tobacco alternatives, and in turn to growth of demand for illegal products, as prices for them are usually significantly lower than those for legal ones. The situation is complicated by the increases in price for cigarettes and tobacco products in recent years caused by the growth of taxes in the country. The growth of taxes became also part of state efforts to reduce tobacco consumption in the country.

Northern Constituency In the meantime, the ever-growing share of illegal cigarettes has already forced the local government to attempt to devise measures aimed at supporting legal domestic tobacco producers. In Argentina’s North Country, the growers carry considerable political clout, particularly in Jujuy and Salta, Argentina’s northwestern-most provinces, and in Misiones, its northeastern-most province. Jujuy and Salta produce primarily flue-cured. Misiones has significant production of criollo—native dark types—as well.

Other major tobacco-producing provinces in the country include Tucumán, Corrientes, Chaco and Catamarca. All are in the north between Jujuy/Salta and Misiones. Most of the production in these provinces is of criollo types, especially Correntino, Salteno and Misionero. The quality of life of people living in these provinces is usually significantly lower than the average Argentinian’s living standards, which means that tobacco plays an important role in their economies. The provision of support to the domestic tobacco sector is also important, since the industry is one of the major employers in the country. At present, the tobacco industry of Argentina employs 500,000 people, about half of them directly involved in the planting and harvesting, only about

two percent in the manufacturing of the derived products and the rest in distribution and sales. It is planned that most of the support will come in the form of subsidies that will be provided to producers in both direct and indirect form. It is planned that part of these funds will be allocated from the existing public fund, Tobacco Special Fund (Fondo Especial del Tabaco, FET) which was specially established a number of years ago for the support of Argentinian tobacco producers. In addition to the provision of direct subsidies from the Fund, the government plans to create conditions to ensure the provision of cheap loans for the industry. Amid the times of economic uncertainty, the local government places big hopes on the domestic tobacco sector, considering it as one of the main sources of income to the country’s state budget. In the meantime, local analysts believe the recession in the country and rising illegal products will contribute to a significant tightening of competition in the local tobacco market already this year.

In 2016, the name of BAT’s Argentine affiliate Nobleza Piccardo was officially changed to BAT Argentina to reflect the company’s practices with affiliates around the world. The official renaming ceremony (shown here) featured undraping the new name from behind a blue, white and gold Argentine flag.

APRIL/MAY 2020 TOBACCO INTERNATIONAL

ARGENTINA

The secretary of the treasury is known as a friend of Argentine tobacco growers.

Majors dominate So far, the market has been primarily dominated by two global tobacco majors—Philip Morris (Massalin Pa r t icu la res), which sel ls t he Marlboro brand, and BAT (Nobleza Piccardo), which sells international brands such as Lucky Strike, Viceroy and Camel and national brands like Jockey and Derby. The combined share of both companies, which operate their own production facilities in Argentina, has always varied from 90 percent to 95 percent of the market The remaining six percent to 10 percent were divided among some local tobacco producers, most of them are companies of small and medium size. The majority of these companies have traditionally specialized in the production and sales of cheap cigarettes and were unable to compete with both multinationals. In regard to BAT and Philip Morris, in addition to large financial reserves and active promotion of their products, one for the reasons of their success in the Argentine tobacco market is the huge tax preferences and benefits, which were provided to them by the state and which allowed them to pay the minimum amount of required taxes. The provision of such benef its

was the result of a special agreement reached by the companies and the Ministry of Treasury of Argentina a while ago. That agreement allowed both multinationals to shift the tax burden to small companies producing cheaper brands of cigarettes.

Possible change Still, there is a possibility such a situation will change as recent successful legal actions initiated by some local producers are designed to end the monopoly of majors that have allowed them to strengthen their positions in the local market and to increase sales of their products. For example, Tabacalera Sarandí, which manufactures economy brand Red Point, has recently managed to circumvent part of the specific tax on cigarettes, thus allowing the company to compete on price with multinationals. Total volume of the Argentinian tobacco market is estimated at 40 billion pieces of cigarettes. Per capita consumption of cigarettes among the smokers in Argentine has declined from its record peaks of the 1980s to it current record lows, a record that includes the entire history of the country.

A farmer in the Argentine province of Jujuy was proud of his flue-cured crop the day TI visited. It had been a dry season.

18 TOBACCO INTERNATIONAL APRIL/MAY 2020

ORIENTAL LEAF

Good News on Tobacco Taxation in Turkey An expected tax hike on tobacco products has been canceled as a means to curb inflation. By Bob Crew, TI Correspondent yanmar, a country of 53 million inhabitants, with Yangon as its capital, has been center stage from the South East Asian perspective for many reasons. The best news thus far this year for the world’s international tobacco industry must surely be the announcement from the Turkish government in Ankara that it will not–repeat—not— implement its automatic annual taxhike on tobacco products (and also alcohol) during the first half of 2020. The reasoning? The government desperately needs to curb inflation that has been wildly out of control and bolster its crippled currency (the Turkish lira) while also raising the nation’s spirits and prospects for perhaps even more interest rate cuts from here on.

Showing the Way? There is no other countr y in the world in which such a sudden turnaround has occurred, so this news is music to the ears of other countries in different parts of the world as well. Turkey is showing the way, perhaps giving some of these other countries hope that if it can happen in Turkey, it can perhaps happen in their own countries. Could Turkey become the new norm? Whilst this may seem absolutely unlikely—just as it seemed unli kely in Turkey before its appalling recession—there are other countries with very similar recession problems (and not least on account of the coronavirus these days!) that just might think again and take a leaf out of Turkey’s book.

Warning labels on Bulgarian cigarette packs are far less harsh than in the West.

20 TOBACCO INTERNATIONAL APRIL/MAY 2020

This Turkish turnaround is great news for British American Tobacco (BAT), who are in Turkey big-time, and also to others that have Turkey in their sights, as well as for millions of Turkish male and female smokers who cannot easily or at all afford increasing taxes on cigarettes, cigars and cut tobacco during Turkey’s recession, which has seen the lira crash against all other currencies of note, not least the pound and the US dollar. The reason why BAT is in Turkey big-time is because—back in 2008—it wisely bought Tekel in Ankara, the tobacco company that has a virtual monopoly of Turkey’s domestic tobacco market—reportedly 70% at least—and is today profiting not only from domestic sales there, but also from exporting Turkish leaf under the BAT banner. The leading item is Oriental leaf, to the United States and elsewhere, cashing in big time on both the domestic and the export market. The traditional Tekel brand image is no more, but its BAT-branded tobacco products are alive and kicking like never before. BAT has won a Turkish Export Leader Award from the Aegean Exporters’ Association in Turkey for having exported to 18 countries, according BAT’s Turkey and North Africa area director Gökhan Bilgiç. He reports that the Gulf Arab Cooperation Council countries, namely the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain are the main destinations for BAT-Turkey’s export products, followed by Iran, Iraq and Libya. Lebanon is identified as the fifth largest market, according to a BAT-Turkey press release. BAT has been the largest buyer of tobacco grown in Turkey for more than 60 years, so it is way ahead of the pack, and in the Aegean region it has based its operations at its plant in the Tire neighborhood of the Izmir province since 2002

Bulgartabac cigarettes ride a conveyor to await marketing.

APRIL/MAY 2020 TOBACCO INTERNATIONAL

ORIENTAL LEAF Bulgartabac owns state-of-theart equipment and uses modern technologies for tobacco processing and manufacturing of tobacco products, primarily for export.

BAT-Turkey started exporting its tobacco products in 2006, and its investments have reportedly amounted to $2 billion to date. It employs 3,000 people in Turkey).

least not for the first half of this year. According to insider information (not referred to in the Gazette!), perhaps not for the rest of the year either. We shall have to wait and see.

“This decision will significantly limit the rise in inflation due to the base effect in the first quarter. The possibility for annual inflation to rise above 12% weakened.” —Erskin Iisk, chief economist at Turkey’s QNB Finansbank Certainly a Surprise But the Turkish government’s decision not to tax tobacco in the first half of this year will also have been great news for everyone involved in the industry— not just BAT. The others surely have found it hard to believe that the fixed tax that is generally imposed automatically each year on tobacco products in Turkey in line with producer price inflation is not going to be automatically continued, at

Whilst Turkish economists are saying that this move will put a further desperately-needed brake on inflation—which reduced in 2019 from multi-year highs from the previous year—with a year-on-year price gauge of some 10.6% in last November. In addition, it seems very reasonable to believe that there are potentially millions of votes for the Erdogan government to win here as a result of this very popular move with Turkish smokers.

22 TOBACCO INTERNATIONAL APRIL/MAY 2020

No doubt that will play a part in the president’s decision. Erskin Iisk, the chief economist at Turkey’s QNB Finansbank, has said, “This decision will significantly limit the rise in inflation due to the base effect in the first quarter. The possibility for annual inflation to rise above 12% weakened.” This makes economic sense all round for smokers and non-smokers alike, respecting (or allowing for) each other’s respective rights to smoke or not to smoke and to spend their own money and treat their own health in their respectively different ways. It is not likely that anti-smoking campaigns are likely to stop in Turkey (which has already switched to plain packaging and warnings on cigarettes), but at least there are no more financial penalties for the time being. It will be interesting to see if this shelving on the tax-hike is extended for the rest of this year and not just the first half as already announced.

What this signifies is a notable change in thinking about smoking in Turkey. Before, the prevailing attitude was in favor of gradually penalizing and taxing smokers at all costs—regardless of damage to the Turkish economy. Now, putting the economy (jobs and consumer spending) before and above health may rise to the fore.

vigorated and given its head, and with a very different story. Bulgaria is a country that is much less severe and restrictive than others and is far less under the influence of the World Health Organization in Switzerland (Geneva) when it comes to warning smokers against smoking. This, of course, makes life a lot easier for tobacco

Bulgaria is a country that is much less severe and restrictive than others and is far less under the influence of the World Health Organization in Switzerland (Geneva) when it comes to warning smokers against smoking. One Billion Dollar Export Market It’s not only Turkey’s domestic tobacco market that is of interest and importance to the Turkish economy here, but its aforesaid export market as well, which is reckoned to be a $1 billion market, reportedly worth $197.3 million to BATTurkey alone at the last count (2018). BAT in Turkey claims to be the biggest Turkish exporter, chiefly to the United States (followed by Belgium and Russia in that order). Obviously there’s a lot to play for here, and BAT in London has been quick to spot this and is ahead of the pack. Among other producers of Oriental leaf: • Bulgaria: There is a lot happening in Turkey and its nearby export markets, but the same can also be said of Turkey’s former Soviet-bloc neighbor, Bulgaria. There is an interesting Pre-and-PostCold-War political history to be told about the sudden and somewhat dramatic emergence of Bulgarian tobacco beyond the Iron Curtain since the collapse of the Soviet Union. Before, monopolistic Bulgaria had always been pretty much the sole and dominant tobacco and cigarette supplier for Russia and all its Eastern Bloc countries. But now we have a new-look Bulgaria with a change of image from a country that has been liberated, re-in-

companies, investors, their advertisers, marketers and also their smokers. Watch for a full report on Bulgarian tobacco in a future issue.

• Greece still manages to support a substantial domestic cigarette market, but Global Data in London said in a special report last year that the nation’s profile has diminished as a result of the country’s recent economic problems. The market for smoking tobacco is relatively small, said Global Data, with cigarettes in 2018 accounting for 86.6 percent of the market while smoking tobacco accounted for 12.3 percent. • Macedonia’s domestic market is similarly struggling. The main reason for Macedonia’s recent decline in volume sales for cigarettes has been and remains increasing unit prices as a resu lt of excise legislation changes. These will continue to be implemented until 2023, according to Euromonitor, unless the Macedonians learn a lesson from the Turks.

Bulgaria’s less restrictive regulatory environment has made life a lot easier for tobacco companies, investors, their advertisers, marketers and also their smokers.

APRIL/MAY 2020 TOBACCO INTERNATIONAL

INDUSTRY UPDATES trative review to determine whether to accept the applications.”

It’s Been a Very Active Spring for Altria Group Its new CEO will have a handful this year with, among other things, legal review of the JUUL deal and the application for the new nicotine product on! From company documents Defending Investment in JUUL The U.S. Federal Trade Commission (FTC) has filed an administrative complaint challenging Altria’s minority investment in JUUL Labs, Inc., Altria has announced. In December 2018, Altria made a minority investment in JUUL, and in exchange for the investment, Altria received a 35 percent economic interest in JUUL through non-voting shares, with their conversion to voting shares and the seating of representatives on JUUL’s board of directors contingent on antitrust clearance. “We believe that our investment in JUUL does not harm competition and that the FTC misunderstood the facts,” said Murray Garnick, Altria’s Executive Vice President and General Counsel. “We are disappointed with the FTC’s decision, believe we have a strong defense and will vigorously defend our investment.”

Application is on! Altria Client Services has submitted premarket tobacco product applications to the FDA for 35 on! Nicotine pouch products on behalf of Helix Innovations LLC, an Altria joint venture responsible for manufacturing and selling the products. on!, which comes in seven flavors and five nicotine levels, offers the most choices in the fast-growing nicotine pouch market, a category for adult tobacco consumers seeking alternatives to traditional tobacco products. “on! nicotine pouches are a key part of our vision to responsibly lead the transition of adult smokers to a non-combustible future,” said Paige Magness, Senior Vice President for Regulatory Affairs for Altria Client Services. “We believe the supporting science is strong and are committed to working with the Agency on these important product submissions. FDA will now undertake an adminis-

24 TOBACCO INTERNATIONAL APRIL/MAY 2020

Gifford New CEO As announced earlier, Altria Group has elected Billy Gifford to serve as Altria’s CEO, following the retirement of Howard Willard. Willard had been forced from work earlier by a case of COVID-19 and decided to step down following 28 years with Altria. Gifford has served in numerous senior leadership roles during his more than 25-year career at Altria, including most recently Vice Chairman and Chief Financial Officer where he was responsible for Altria’s financial functions as well as its core tobacco businesses, sales and distribution business and Consumer & Market Insights team. Altria decided to separate the roles of Chairman and CEO. The Board elected Thomas Farrell, formerly the Board’s independent Presiding Director, as independent Chairman of the Board, effective April 16, 2020. It also chose Salvatore Mancuso to serve as Executive Vice President and Chief Financial Officer.

Top: The Altria factory in Richmond, Va., where many of its cigarettes are made. Above: Billy Gifford.

Disappointing Results in Past Six Months for Imperial Imperial reduced its dividend by a third in light of its £14 billion debt. From company documents and general media. mperial Brands revealed in its report for the six-months ending in March 31 that it had reduced its dividend by a third in light of its £14 billion debt, according to news reports. A statement accompanying the report tried to put the company’s performance in perspective. “While we delivered against our revised expectations, we are disappointed with these results, and we remain fully focused on all opportunities to strengthen performance,” said Dominic Brisby and Joerg Biebernick, Joint Interim Chief Executives, in a statement accompanying the report. “Our enhanced focus on tobacco has driven stronger in-market execution and an improved share performance, with gains in most of our priority markets. “We have reduced our NGP spend following the poor returns on investment last year, and this, together with recent weaknesses in the vapor category, has resulted in lower NGP revenue.” They observed that a temporary COVID-19-related trade inventory build caused about a one percent net increase to net revenue and profit. On the positive side, the sale of the premium cigar business for €1.2 billion was a major achievement (see TI Digest, page 10) and will further simplify the business and reduce debt, they said. “Deleveraging remains a key priority, such that the Board has decided to rebase the dividend by one-third to accelerate debt repayment, while retaining a progressive dividend policy, growing annually from the rebased

level,” they said. “This will strengthen the balance sheet and support a more flexible approach to capital allocation in the future.” “We would like to thank our employees for their hard work and commitment in these challenging times. Their support has been outstanding and we continue to prioritize their health, safety and well-being,” Brisby and Biebernick said. Pandemic impact small Surprisingly, the pandemic had not been much of a factor. “The impact of COVID-19 on trading has been small so far,” they said. “But we expect this to be more pronounced in the second half due to continued pressures on our duty-free and travel retail business, changes in consumption patterns, including downtrading, and a reversal of some first half inventory build.” As to the future, Imperial notes t hat a lt houg h t here are dif ferent trends across different markets, there appears to be three main drivers of COVID impact that will influence the outcome: “Market size declines have deteriorated due to significant restrictions on certain sales channels. This principally relates to a material decline in demand in our global duty free/travel retail operations with the cessation of international and cross border travel,” the report said. “Given the outlook for international travel, we are currently assuming no recovery in this business during the second half.” Also, there is evidence of changes to consumption and buying patterns, in-

cluding increased downtrading across certain markets. “We expect these trends will continue and potentially deteriorate further with recessionary pressures,” the report said. “However, we believe we are relatively well placed with a lower exposure to premium products within our portfolio.” The current COVID-related restrictions on some manufacturing facilities have reduced their production capacity and affected their operating efficiencies. “We have assumed these will be back to full capacity by the end of June. We have also assumed there is no second spike that will further disrupt other areas of our manufacturing and supply chain.” The analyst Stephen Pope of the London financial-services firm Spotlight Ideas told the Winston-Salem Journal Imperial may have acted wisely in reducing its interim dividend to 51 cents a share. “Imperial becomes the latest of companies trying to preserve its liquidity and stay af loat during these trying times,” Pope was quoted as saying. “The company is at the heart of an industry that is in the grip of a pincer movement driven by the economic slowdown caused by COVID-19 and on the other side the relentless wave of regulatory attention that tobacco magnetically attracts.” Weak period going forward? Pope said look out for a very weak period going forward for Imperial and poor sales and profits. Things apparently are not going too well for Pyxus International Inc. which has begun discussions with creditors around a possible bankruptcy filing, according to a report in the Wall Street Journal that could not be confirmed as this issue went to press. Watch future issues of Tobacco International for further details.

APRIL/MAY 2020 TOBACCO INTERNATIONAL

INDUSTRY OPINION

PMI:

The Best Way to Recover from the Pandemic

An executive with PMI has appealed for compassion and kindness—and more emphasis on science and evidence— in the “new normal” that awaits us in the months ahead. peaking to a festival in Croatia, Maria n Sa lzma n, Senior V i c e P r e s i d e nt of G l o b a l Communications for PMI, said human generosity and community spirit (and reverence for the medical and scientific professions) will be the critical driving forces of our economy post-COVID-19. “As business people and communicators, we need to embrace the role of science and of empathy. We’re all neighbors now.”

bring change. “We will see a growth of sharing, less hyper-partisanship. We will see more support for living wages and for those who drive buses and ambulances. We’ll see more meaningful brand outreach. Brands will need to communicate with heart, soul, brains, and facts.” For all the uncertainty and bleak economic forecasts, Salzman noted that the lockdown is providing an op-

place, school, therapist, doctor’s office, house of worship, lifeline, source of entertainment and supply chain. What were once random acts of kindness are now commonplace.” Now i s t he t i me for ac t ion, Salzman insisted. Efforts should be focused on supporting struggling businesses and the unemployed, lifting people’s spirits, offering hope, and joining community drives to help those in need. She said she wants brands to protect the interests of their employees and customers. “We wa nt to k now our bra nd partners are putting people f irst, implementing measures–well before government mandates–to enable remote working and support social distancing. Fighting the spread of this pan-

“As business people and communicators, we need to embrace the role of science and of empathy. We’re all neighbors now.” —Marian Salzman, Senior Vice President of Global Communications, PMI

People need to hope for something better in the PC-19 world, she said. “And we’re seeing promising signs of what could lie ahead if we hold on to this sense of togetherness.” Salzman believes this palpable spirit of community togetherness can

portunity for many family units to spend more time together. “There is promise that for all its devastation, this global pandemic might serve as a sort of reset, shepherding in a new era marked by what I call the four Cs: Compassion, camaraderie, civility and communit y,” Salzman continued. “There is promise that, for all its devastation, this global pandemic might serve as a sort of reset, shepherding in a new era marked by what I call the four Cs: compassion, camaraderie, civility and community.” Ironically, she noted, social distancing has made us more connected. “The internet is now our work-

26 TOBACCO INTERNATIONAL APRIL/MAY 2020

demic—such as developing medicines and vaccines at “super-speed”—is an expensive proposition. However, Salzman asserts we’ll get through it faster–and at a lower human and financial cost–if the largest organizations help to shoulder the financial burden. “I can speak from first-hand experience here,” she said of the contributions PMI is making to the global effort. “My company has been actively working against this pandemic since its outbreak, with initiatives in more than 60 countries in which our employees live and work. To date, I believe we’ve given a little over USD 30 million.”

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INDUSTRY OPINION

BAT Goes to Kentucky to Develop a COVID-19 Vaccine BAT’s potential COVID-19 vaccine has been shown to produce a positive immune response and is poised to move to the next phase of testing. e are committed to creating A Better Tomorrow for all our stakeholders. We are continuing to evolve and build on the many initiatives we have in place to address the global impact of COVID-19. Additionally, we are ensuring the well-being of our staff around the world and making sure our business continues to operate effectively in these challenging times, whilst providing many forms of direct support. In April, BAT announced that its biotech subsidiary, Kentucky BioProcessing, was developing a potential vaccine for COVID-19. Since then, we have been completing pre-clinical testing and are pleased to report the potential vaccine has been shown to produce a positive immune response. As such, the vaccine candidate is now poised to progress to the next stage which will be Phase 1 human clinical trials pending FDA authorization. We have committed funds to conduct these clini-

cal trials, which could start as early as late June, pending the responses from relevant health bodies. We have also invested in additional equipment to boost our manufacturing capabilities should they be needed.

• Loaning the UK government equipment from our R&D laboratory for use in COVID-19 testing centers; • Utilizing our 3D printers to make components that will be used in protective face shields; • Donating funds to one of our suppliers to secure the manufacture of 25,000 more protective face shields; • In several international markets, such as Brazil and Kenya, we’re using our distribution networks to ensure that medical and hygiene equipment reaches vulnerable communities; • In Bangladesh, our factory is making a first batch of 60,000 bottles of hand sanitizer; • In the U.S., the Reynolds Foundation donated to the COVID-19 Response Fund for Forsyth County, N.C.; • Our U.S. subsidiary partnered with North Carolina Gov. Cooper and the N.C. Department of Emergency Management donating N95 masks whilst also donating provisions to the King Outreach Ministry, a local crisis-intervention organization.

Kentucky BioProcessing, BAT’s biotech subsidiary, is looking for a solution to the global pandemic. We have submitted our Pre-Investigative New Drug package to the U.S. FDA who have acknowledged its submission whilst our correspondence with other government agencies around the world continues. We are hopeful to receive further feedback in the coming weeks. In addition, as our Chief Executive, Jack Bowles recently highlighted, we are contributing (to the COVID 19 effort) in several other ways including:

28 TOBACCO INTERNATIONAL APRIL/MAY 2020

These global efforts are complemented by donations to emergency and disaster funds, supporting governments as they fight the pandemic on a national scale. As the COVID-19 situation evolves, the type of support required globally, and in the communities where we operate, will undoubtedly change. BAT’s support around the world will flex and evolve, responding to the ever-changing needs that this crisis creates.

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LEAF NEWS A re-setting crew in Nayarit places spare plants in missed spaces in a field that has already been set Missed spaces are common in any field (anywhere) that mechanical transplanters are used.

MEXICO Nayarit Still Leads in Leaf Production tepic—The Mexican state of Nayarit continues in its traditional position of leader among states in terms of tobacco production. It produced 13,470 metric tons in 2018 out of the roughly 15,000 metric tons of production for the country as a whole. The next four leading states in production were Veracruz with 1,295 metric tons, Chiapas with 372 metric tons, Guerrero with 41 metric tons and Tabasco with 1.6 metric tons. There is considerable geographical spread among the producing states. Chiapas and Tabasco lie in the far south of Mexico. Both share a border with Guatemala. Veracruz lies just north of those states and just east of the Federal District. It has a long coast with the Gulf of Mexico. Guerrera lies just south of the Federal District and borders the Pacific Ocean. Nayarit is in Mexico’s Pacific Northwest.

A Mexican farmer loads his burley stalks in a curing stand called a galeria. This farm is located near the town of Santiago Ixcuintla in Nayarit.

UNITED STATES Transplanting is Running Behind for Flue Cured raleigh, n.c.—It was a bad season along the southern Atlantic coast this spring to produce plants and a late one to transplant them.

30 TOBACCO INTERNATIONAL APRIL/MAY 2020

“This crop was seeded much later than normal, then we had the worst greenhouse season in my 10 years in North Carolina,” said Matthew Vann, N.C. Extension tobacco specialist. “Once we were ready to set out, it seemed like we had a big weather event every week, and our soils remained saturated.” But one week of good dry weather and moderate temperatures would allow farmers to catch up, he said. Plantings in the flue-cured states through May 10 were estimated at: • North Carolina: 64 percent. Said Vann, “Compared to any other year, we are well behind.” • South Carolina: 84 percent. The weather wasn’t favorable in this state either, said Matthew Inman, South Carolina Extension tobacco specialist. More than normal replanting might be required because some heavy early storms. • Georgia and Florida: Both 100 percent. In contrast to the Carolinas

UNITED STATES In western Kentucky and Tennessee, temperatures were favorable, and a few dark fire-cured growers planted early. But it probably only accounted for one percent or less of the dark air-cured and fire-cured tobacco in those states. Most was expected to go into the ground beginning the week of May 11. After an apparently rewarding test crop in 2019, the cigar type Connecticut broadleaf is rising in popularity in western Kentucky and Tennessee. Da rk tobacco fa rmers i n t he “Black Patch” are planting significantly more Connecticut broadleaf this season, perhaps as much as twice the area as last year. “There could be 2,500 acres or more grown in Kentucky and Tennessee this year,” said Andy Bailey, Extension dark tobacco specialist for Kentucky and Tennessee. Dark growers in this area have plenty of experience in producing wrapper grades, and they need it because wrappers are by far the most valuable grade of broadleaf. “Broadleaf that earned a wrapper and Virginia, the two Deep South states had enjoyed good weather and were in fact ahead of schedule. The small tobacco crop in Florida had been planted entirely by May 1, and planting in Georgia was essentially complete by May 4.

Above left: Connecticut broadleaf tobacco in the field. Note the very wide leaves that droop almost to the ground. They make excellent wrappers for cigars. Above right: It’s no exaggeration when the Connecticut type of tobacco is called “broadleaf.” A perfect wrapper leaf like this will bring top dollar from cigar manufacturers.

grade last year sold for $4 to $6 per pound,” said Bailey. “But for leaf that doesn’t get a wrapper grade, the price offered is less than for burley.” Dark Tobacco Contracts Cut Another factor favoring Connecticut broadleaf is the lower contracting volumes available for the dark type this year.

U.S. Smokeless Tobacco cut contracts drastically, with dark fire-cured reduced 45 percent and dark air-cured 48 percent. American Snuff, the number two buyer of the dark types, was reportedly unchanged in its contract. Bailey estimates dark fired plantings at 12,000 acres and dark air plantings at four to 5,000 acres.

Workers at a flue-cured farm near Rocky Mount, N.C., set out plants.

Too cold for tobacco planting In the burley states of Kentucky and Tennessee, growers were delaying setting tobacco because of unseasonably cold temperatures and some heavy localized showers. In Kentucky, two percent of the burley had been planted by May 10. There was no estimate as of that date for Tennessee. APRIL/MAY 2020 TOBACCO INTERNATIONAL

LEAF NEWS

ZIMBABWE Despite Coronavirus, Zimbabwe Opens Its Auctions harare—Tobacco sales here began late last month after a month-long delay due to a general lockdown ordered by the government to contain the COVID-19 virus. The lockdown continues, but tobacco marketing has been exempted on condition that everyone involved observes recommendations to reduce infections. To try to minimize them, the national agriculture minister proposed restructuring deliveries to the floors to minimize the number of the human traffic coming to the markets and to reduce transport costs paid by the farmer. One such restructuring was put in place, but with questionable success: A stipulation that tobacco will be sold only by appointed representatives and not by the farmers themselves. It was hoped that this would eliminate the mobs of people that tradition-

ally gather at auction sales, increasing the possibility of spread of coronavirus. Before the auctions began, there was considerable skepticism among farmers that their best interests would be served. “We are not afraid of coronavirus,” one farmer told the ZimLive.com news organization. “The risk is that farmers could be cheated out of their money due to the new guidelines which say we must give our crop to a representative who will come here to sell on our behalf.” Will Pandemic Lower Exports? As the season began, there was fear that the pandemic could affect export sales from Zimbabwe. “It’s likely to affect tobacco sales, yes, in that most countries have now directed their resources towards dealing with the coronavirus epidemic,” said Agriculture Minister Perrance Shiri to ZimLive. “It’s too early to say how much it’s going to affect us.”

32 TOBACCO INTERNATIONAL APRIL/MAY 2020

Through May 8, 6.1 kilograms had been sold at all auctions for an average price of $2.2 per kilogram (USD), close to last year’s average. But there was no assurance that it would hold up. “The price [in Zimbabwe] for the golden leaf may slump this season further from the average $2.03 per kilo for the 2019 season,” said Victor Bhoroma, an independent Harare-based economist just before auctions began. He pointed to the decline in global leaf consumption, and said, “This will have dire consequences to the whole economy.” 3,000 Fewer Growers The number of registered growers is 148,084 this year compared to 178,721 in 2019, said the Zimbabwean Tobacco Industry Marketing Board. Plantings are estimated down 12%, from 133,000 hectares in the 2019 season to 117,000 for the current season.

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Albania – Bangladesh

Section 1: Global Directory Associations, Distribution/Importers & Exporters, Product Manufacturers, Leaf Dealers & Processors, Suppliers

ALBANIA Cigarette Manufacturer British American Tobacco Albania Tobacco and Cigarette Factory Stamles Product Manufacturer Tobacco and Cigarette Factory Stamles

ALGERIA Cigarette Manufacturer British American Tobacco Algeria

ANDORRA Cigar Manufacturer Franc Port, SA Cigarette Manufacturer Franc Port, SA JT International Tabandor SA Product Manufacturer Franc Port, SA Industries Montanya SA JT International Tabandor SA Smoking Tobacco Industries Montanya SA

ANGOLA

Product Manufacturer Massalin Particulares SA Philip Morris Nobleza Piccardo SAIC y F Smoking Tobacco Massalin Particulares SA Philip Morris Nobleza Piccardo SAIC y F

ARMENIA Cigarette Manufacturer British American Tobacco Armenia Grand Tobacco Co. Ltd SPS Cigaronne Co. Ltd Virginia Ltd Distribution/Product, Importer & Exporter Armenian Greek JV Masis Tobacco MV Co. Ltd Masis Tobacco Ltd Growing & Fermentation Masis Tobacco Ltd Leaf Dealer Armenian Greek JV Masis Tobacco MV Co. Ltd Masis Tobacco Ltd Product Manufacturer Armtabak d S C Grand Tobacco Co. Ltd SPS Cigaronne Co Ltd Virginia Ltd Smoking Tobacco

Consulting Knapp AG

XXXXXXX — XXXXXXX

Acetate Tow — Blending Machines XXXXXXX & Mixing — Plants XXXXXXX —XXXXXXX XXXXXXX

A complete directory to the world of allied products and services utilized by tobacco product manufacturers, leaf processors, and tobacco growers in the course of their business operations, organized alphabetically by product or service. Refer to Section 3 for complete contact information for the desired company. Refer to the Advertiser Index on page 144 to locate a supplier’s advertisement.

Product Manufacturer Knapp AG Research & Development Knapp AG Trierenberg Holding AG Supplier Altesse Berndorf Band GmbH Delfort Group AG Dr. Franz Fuerstein GmbH Folial GmbH Knapp AG Kukla Waagenfabrik GmbH & Co. KG Mayr-Melnhof Karton Mayr-Melnhof Packaging International/ International Tobacco Packaging MWV/A MeadWestvaco Resource Osterreichische Zigarettenfilter GmbH Poettinger Entsorgungstechnik GmbH & Co. KG Poettinger Water Disposal Technology S & S Vertriebs - GmbH Schiff + Stern KG Trierenberg Holding AG

AZERBAIJAN

AAF international americanair filter, P.O. Box 35690, Louisville, Kentucky 40232-5690, United States. Tel: +1 502 637 0011, Toll free +1 888 223 2003. Fax: +1 502 637 0321, Toll free +1 888 223 6500. Email: info@aafintl.com. Web: www.aafintl.com. Business Type: Suppliers. Products: Dust Collectors, Electronic Cigarettes, Electronic Cigarettes. Abal Hermanos SA, Paraguay 1780, Montevideo 11800, Uruguay. Tel: +598 2 924 0915. Fax: +598 2 924 1732. Web: www.pmintl.com. Business Type: Cigarette Manufacturers, Product Manufacturers.

Leaf Dealer Aucana Marketing GmbH Logistic Equipment Knapp AG

Section 3: Contact Information

Section 2: Supplies & Services, Machinery & Equipment

Distribution/Product, Importer & Exporter Top Brands Weswaldi International

Armtabak d S C Cigar Manufacturer Knapp AG ETA (Empresa dos Tabacos de Angola), SARL Supplier Armenian Greek JV Masis Tobacco MV Co. Ltd Cigarette Manufacturer Trierenberg Holding AG Wholesaler/Distribution British American Tobacco Angola Knapp AG AUSTRALIA rter ETA (Empresa dos Tabacos de Angola), SARL Association AZERBAIJAN Product Manufacturer Supplier Tobacco Cooperative of Victoria . Ltd ETA (Empresa dos Tabacos de Angola), SARL Cigarette Manufacturer Cigar Manufacturer British American Tobacco Azerbaijan Altesse Imperial Tobacco Australia Ltd ARGENTINA BAHAMAS Cigarette Manufacturer Association Berndorf BandBritish GmbH American Tobacco Australia Camera de Tabaco Cigar Manufacturer Philip Morris International (Australia) Ltd Graycliff Cigar Co. Cigarette Manufacturer Delfort Group AG Distribution/Product, Importer & Exporter British American Tobacco Argentina Product Manufacturer Swedish Match Australia Goloteca Manufactura Argentina de Tabacos Graycliff Cigar Co. Dr. Franz Fuerstein GmbH Massalin Particulares SA Logistic Equipment Philip Morris Conveying (Aust) Pty. Ltd BANGLADESH Nobleza Piccardo SAICFolial yF GmbH Industrial Product Manufacturer Cigarette Manufacturer Leaf Dealer American Tobacco Australia Abul Khair Leaf Tobacco Co. Ltd AG British One ArgentinaKnapp SA Philip Morris International (Australia) Ltd Bangladesh Tobacco Industries Ltd . Ltd Alliance Bonpland Leaf SA (BLASA) British American Tobacco Bangladesh Supplier Coop. de Salta Co. Ltd Kukla Waagenfabrik GmbH & Co. KGB.A.T. Anzpac Services (Australia) Pty. Ltd Cooperativa de Tabacalera de Tucuman Ltda Husna Tobacco Pvt. Ltd FlexLink Systems Pt. Ltd Cooperativa de Tabacaleros de Corrientes Ltda Nasir Leaf Tobacco Industries, Ltd Industrial Conveying (Aust) Pty. Ltd Mayr-Melnhof Karton Cooperativa de Tabacaleros de Jujuy Ltda Innovia Films (Asia-Pacific) Pty. Ltd Distribution/Product, Importer & Exporter Cooperativa Tabacalera de Misiones Ltda Kamra International Pty. Ltd Abul Khair Leaf Tobacco Co. Ltd J. Felipe Ottaviano y Cia. SA Mayr-Melnhof Packaging International/ RothTech Pty. Ltd Nasir Leaf Tobacco Industries, Ltd Universal Leaf Tabacos SA Treofan Australia Pty. Ltd Leaf Dealer International Tobacco Packaging Abul Leaf Processer Khair Leaf Tobacco Co. Ltd Cooperativa de Tabacaleros de Jujuy Ltda AUSTRIA Bangladesh Leaf Tobacco Co. Ltd MWV/A MeadWestvaco Pipe Smoking Tobacco British American Tobacco Bangladesh Cigarette Manufacturer Resource Nobleza Piccardo SAIC y F B.A.T. Co. Ltd British American Tobacco Austria Osterreichische Zigarettenfilter GmbH Tobacco International Buyers’ Guide & Global Directory 2018 9 Advertisers appear in bold Poettinger Entsorgungstechnik GmbH & Co. KG Poettinger Water Disposal Technology S & S Vertriebs - GmbH Schiff + Stern KG Trierenberg Holding AG . Ltd Wholesaler/Distribution Knapp AG

Cigarette Manufacturer

• Multi-Platform Distribution • Digital Advertising

Acetate Tow see Filter Tow

Adhesive Applicators Fi-Tech, Inc. (United States) C.B. Kaymich & Co. Ltd. (United Kingdom) PAK-TEC, Inc. (United States) SPI Developments Ltd. (United Kingdom)

Vintero Corporation (United States)

Adhesives Baumer hhs GmbH (Germany) Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) FORBO-Swift Adhesives Ltd. (England) Forbo Swift Adhesives Ltd. (United Kingdom) Haynes Rubber & Supply Co., Lewis-Goetz (United States) H.B. Fuller Co. (United States) H.B. Fuller GmbH (Germany) Henkel & Cie AG (Switzerland) Henkel KG (Germany) Hitkari Trading Corporation (India) KneX Worldwide (United States) Mena Company for Adhesives Technology “Menatec” (Egypt) National Starch & Chemical GmbH (Germany) National Starch & Chemical Co. (United States) National Starch & Chemical Ltd. (United Kingdom) Pafra Systems Ltd. (United Kingdom) PAK-TEC, Inc. (United States) PJM Pujadas SA (Spain) Siag Chemicals Co. SAE (Egypt) STI Petofi Nyomda Kft. (Hungary) Titan Adhesives Co., Inc. (United States) Tuermerleim GmbH (Germany) Tutunski Kombinat A.D. Prilep - TKP (Macedonia) Upaco Adhesives Inc. (United States)

Acetate Tow

Mechanical Transplanter (United States) Muller Vinosafe SAS (France) Opico (United States) Powell Manufacturing Co., Inc. (United States) Taylor Manufacturing, Inc. (United States)

Balers

Air Filters

Band Tobacco

Csonka Worldwide (United States) Hauni Maschinenbau AG (Germany) Renold, Inc. (United States) Tholander Ablufttechnik GmbH (Germany) Tornex Inc. (Japan) United Air Specialists, Inc. (United States) Up-To-Date Environmental Engineering AG (Switzerland)

see Homogenized Tobacco

Aluminum Foil BMJ (Indonesia) ColourPackaging Ltd. (Kenya) Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) KneX Worldwide (United States) Novelis Deutschland GmbH (Germany)

Aluminum Foil Paper/ Board Rotogravure Printing AL INVEST Bridlicna, AS (Czech Republic) Aluprint S. de R.L. de C.V. (Mexico) Big Beard Co., Ltd. (China) Big Beard Co. Ltd. (China) IBI Corp. (South Korea) Mudanjiang Hengfeng Paper Co., Ltd. (China) New Toyo Aluminum Paper Product Co. (Singapore) Novelis UK Ltd. (United Kingdom) Parkside Flexibles (Normanton) Ltd. (United Kingdom) PT Tunas Alfin (Indonesia) Symetal SA (Greece) Vaassen Flexible Packaging BV (Netherlands)

ABC Tobacco, Higienopolis 1601, Eurocenter sala 1203, Londrina 86015 010, Brazil. Tel: +55 43 3336 3300. Fax: +55 43 3339 5001. Email: contact@abctobacco.com. Web: www. abctobacco.com. Personnel: Camila Silva; Maroun Khouri.

International Baler Corp. (United States)

Baling Press see Presses (Balers)

Abdullah Khan Tobacco Corp., 3-28-15/1 Brundavin Gardens, Guntur, A. P. 522007, India. Tel: +91 863 2354 576. Fax: +91 863 2354 576. Email: abdulla_tobacco@yahoo.com. Personnel: Abdullah Khan, managing partner; Saamir Khan, export division. Business Type: Leaf Dealers.

Band Tobacco Machinery

ABN Amro Bank, Herengracht 595, Amsterdam 1000 AB, Netherlands. Tel: +31 20 628 6365. Fax: +31 20 628 7697. Business Type: Suppliers.

see Homogenized Tobacco Making Machinery

Bandaroling Machines emkon. (Germany) Focke & Co. (GmbH & Co. KG) (Germany) Hauni Maschinenbau AG (Germany)

Abul Khair Leaf Tobacco Co. Ltd., D.T. Road, Pahartali, Chittagong 4000, Bangladesh. Tel: +880 31 714561 4. Fax: +880 31 710051/720239. Email: tobacco@abulkhairgroup. com. Web: www.abulkhairtobacco.com. Business Type: Cigarette Manufacturers, Distribution/Product, Importers & Exporters, Leaf Dealers.

Banding Machines C.A.T. d. Corsini G&C SpA (Italy)

Base Paper

Accumen Technology, Watermeadow House, Watermeadow, Chesham, Bucks HP51LF, United Kingdom. Tel: +44 1 494 79 4633. Fax: +44 1 494 794 644. Personnel: Colin Bunting, marketing director; Frank Daugherty, sales director; John Evason, technical director. Business Type: Suppliers. Products: Weight Control Equipment.

BMJ (Indonesia) Dr. Franz Fuerstein GmbH (Austria) Mudanjiang Hengfeng Paper Co., Ltd. (China) Tervakosi Oy (Finland)

Beedies Soex India Pvt. Ltd (India) Sopariwala Exports Pvt. Ltd (India)

Belt Fasteners

Mechanic Muller Vin Opico (Un Powell Ma Taylor Ma

Adhesive Applicators

Ammeraal Beltech Holding BV (Netherlands) Ammeraal Beltech Inc. (United States) Flexco (United States) Forbo Siegling, LLC (United States) Haynes Rubber & Supply Co., Lewis-Goetz (United States) Jerry Brothers Industries, Inc. (United States) Mcleod Belting Co., Inc. (United States) Piedmont Belting Co. (United States) Sparks Belting Co. (United States) Ton-Tex Corp. (United States)

Fi-Tech, Inc. (United States) Sargent’s Sons Division (United States) V.I.T. SA (Greece) C.B. Kaymich & Co.ApronLtd. Pins (United Kingdom) Diamond Metal Screens Pvt. Ltd. (India) PAK-TEC, Inc. (United States) Art Paper & Board Tervakosi Oy (Finland) SPI Developments Ltd. (United Kingdom)

Agency for Dematic Corp. (United States) Ammeraal Beltech GmbH (Germany) Ammeraal Beltech Holding BV (Netherlands) Esbelt SA (Spain) Malcam (Israel) Max Schlatterer GmbH & Co. KG (Germany) Sampla Belting S.P.A. (Italy) Verseidag Beltech Group (Germany)

see Filter Tow

Agricultural Chemicals

AG Sales & Service (United States) Barrettine Environmental Health (United Kingdom) Casa Bernardo Ltda. (Brazil) Chemprene (United States) Chemtura AgroSolutions (Latin America) Cochran Corp. (United States) Fair Products, Inc. (United States) Fersol (Brazil) Lurgi GmbH (Germany) Sunzon International (United States) Unichema International (Germany) Yara North America, Inc. (United States)

Agricultural Equipment & Machinery AG Sales & Service (United States) Beltwide Inc. (United States) Carolina Soil do Brasil Ltda. (Brazil) de Cloet Ltd. (Canada) Farmquip (Pvt.) Ltd. (Zimbabwe) Kali Und Salz GmbH (Germany) Long Agribusiness (United States) Maquinas Binz Industria e Comercio Ltda. (Brazil)

Apron Machinery Diamond Metal Screens Pvt. Ltd. (India) Evans-MacTavish-Agricraft, Inc. (United States) Godioli & Bellanti SpA (Italy)

Bale Slicers Comas S pA (Italy) Garbuio Dickinson (United Kingdom) Godioli & Bellanti SpA (Italy) Griffin Cardwell Ltd. (England) Griffin & Co. Inc. (United States) Hauni Maschinenbau AG (Germany) International Tobacco Machinery BV (Netherlands) Koehl Tobacco GmbH (Germany) Kunming Shipbuilding Equipment Co. Ltd. (China) The LTL Group (United Kingdom) Muzer Makina San. ve Tic. Ltd. Sti. (Turkey)

Vintero Corporation (United States)

Adhesives

Belts & Belting

Blended Cut Tobacco

Air Filter Csonka W Hauni Mas Renold, In Tholander Tornex Inc United Air 2018 Up-To-Da 39

A. Asbjornsens Tobaksfabrik AS (Norway) Fumarole (Pvt.) Ltd. (Zimbabwe) Independent Leaf Tobacco Company, Inc. (United States) Tobacco Products International FZ-LLC (United Arab Emirates) Top Tobacco International, Inc. (United States)

Blending Machines & Mixing Plants Ets. Joseph Cruanas (France) Franz Sagemüller GmbH (Germany) Godioli & Bellanti SpA (Italy) Griffin & Co. Inc. (United States)

Baumer hhs GmbH (Germany) T b I t ti l B ’ G id & Gl b l Di Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) FORBO-Swift Adhesives Ltd. (England) Forbo Swift Adhesives Ltd. (United Kingdom) Haynes Rubber & Supply Co., Lewis-Goetz (United States) H.B. Fuller Co. (United States) H.B. Fuller GmbH (Germany) Henkel & Cie AG (Switzerland) Henkel KG (Germany) Hitkari Trading Corporation (India)

Fax: +66 2 237 6111. Email: info@adamsint.com. Web: www. adamsint.com. Personnel: Allen Tucker, director; Karl Kunz; Sunchal Chongsuknlrandr, director; Rao Somesh, Director; Altemir Wollmann, Director; Arjaree Yatirukpien, director; Wing F Chung, managing director; Henrik Baark, Director; Prem Thoonkapbalin, director. Business Type: Leaf Dealers. Offices: F + K.Factory:, 174 Jangsanit Rd., Ban Phai, Khon Kaen 40110, Thailand. Tel: +66 43 272 372/073. Fax: +66 43 272 370.

Pahartali, 4561 4. Fax: ulkhairgroup. ess Type: Importers &

Watermeadow, : +44 1 494 Colin Bunting, ector; e: Suppliers.

Aluminu AL INVEST

Admiral Electronic Cigarettes, 7020 Hayvenhurst Avenue, Suite A, Van Nuys, California 91406, United States. Tel: (818) 9889568. Business Type: Suppliers. Products: Electronic Cigarettes. Adolfo Pfeiffer SA, cl. Velazquez 136, 28006, Madrid 28006, Spain. Tel: +34 91 562 98 04. Fax: +34 91 561 21 88. Email: adolfo.pfeiffer.sa@auna.com. Personnel: Adolfo Pfeiffer Seghers, managing director. Business Type: Leaf Dealers. Aegean Tobacco Exporters Association, Ataturk Cad. No: 382, Alsancak, Izmir 35220, Turkey. Tel: +90 232 463 69 50. Fax: +90 232 463 39 41. Email: eib1@egebirlik.org.tr. Web: www.egebirlik.org.tr. Personnel: Sezmen Alper, sec. General; Tahir Kanlikuyu, department manager. Business Type: Associations. AER Premium Electronic Cigarettes, 5130 Avenida Encinas, Carlsbad, California 92008, United States. Tel: (800) 570-6350. Business Type: Suppliers. Products: Electronic Cigarettes. AET Films, 15 Read’s Way, New Castle, DE 19720, United States. Tel: +1 302 326 5500. Fax: +1 302 326 5501. Email: info@aetinc.com. Web: www.aetfilms.com. Personnel: Bill Swain; Denis Alexander; James R. Rich; Ronald N. Rodeck. Business Type: Suppliers. Products: Film (Polypropylene). AET Sales, 4601 Olde Forest Drive, Greenboro, North Carolina 27406, United States. Tel: +1 336 674 0100. Business Type: Suppliers.

AA Agrisense BCS Ltd., Unit 1, Taff Mead Rd., Treforest Industrial Estate, Pontypridd, Mid Glamorgan CF375SU, United Kingdom. Tel: +44 1443 841 155. Fax: +44 1443 841 152. Business Type: Suppliers. Products: Fumigation Equipment & Systems, Pesticides, Product Security. Agritab SRL, 11 Berzei, Sector 1, Bucharest 70759, Romania. Tel: +40 1 3121 074. Fax: +40 1 3121 074. Personnel: D. Ionescu, chairman & c.e.o. Business Type: Leaf Dealers. Agrotab, Monte da Barca, P.O. Box 53, 2104-909 Coruche, Portugal. Tel: +351 243 610 700. Fax: +351 243 610 798. Email: agrotab@pmintl.com. Personnel: Jose` Lourinho, director; Carlos Santiago, president. Business Type: Leaf Dealers. A. Habeebur Rahman Sons, # 4/5 (New #28), Jamalia Nagar, Perambur High Road, Chennai, T.N. 600 012, India. Tel: +91 44 2662 3676/2662 2636. Fax: +91 44 2662 5045. Email: info@ sbidis.com. Web: www.sbidis.com. Personnel: A. Uvais Ahmed, director; A. Mohamed Ashraf, director. Business Type: Cigarette Manufacturers, Product Manufacturers, Smoking Tobacco. Ahlstrom/Labelpack Division, 6, Rue de Rome, Rosny-sousBois Cedex F 93561, France. Tel: +33 1 4935 40 40. Email: labelpack@ahlstrom.com. Web: www.ahlstrom.com/lp. Ahmed & Sons, B-53 Willayatabad Manghopir Road, Karachi 75700, Pakistan. Tel: 0092 213 2577026. Fax: 0092 213 2572516. Email: info@ahmedsons.us. Web: http://www. ahmedsons.us. Business Type: Suppliers. Products: Garniture Tapes, Suction Tapes. Aiger Engineering Ltd., P.O. Box 77, 246 Vasillevski St., Plovdiv BG-4003, Bulgaria. Tel: +359 32 905001. Fax: +359 32 947001. Email: sales@aiger.com. Web: www. aiger.com. Personnel: Simon Strothers, group sales and marketing director; Dimitar Yanchev, general manager; Michael Houldsworth, Director Aiger UK. Ltd. Business Type: Suppliers. Products: Carton Boxing/Forming Machinery, Cigarette Filter Tip Machines, Cigarette Making Machinery, Cigarette Tax Stamping Machines, Cutters & Cutting Machines, Packaging Machinery, Rebuilt Machinery Materials-Non Tobacco, Spare Parts, Wrapping Machines. Office: Aiger Group AG. Tel: +41 41 7267873. Email: office@hqgroup.aiger.com. Aiger USA LLC. Tel: +1 412 616 2833. Fax: +1 412 251 0466. Email: sales@ usa.aiger.com. Aiger Far East Ltd. Tel: +65 9272 2203. Email: kevin.ang@aiger.com. Aiger UK Ltd. Tel: +44 (0) 121 230 1768. Email: sales@aiger.com.

Africaleaf (Malawi) Ltd., Plot 29/173B Alimaunde, P.O. 3300. Fax: +55 Box 40012, Kanengo, Lilongwe 4, Malawi. Tel: +265 1 710 914. Fax: +265 1 712 417. Email: leaf@africaleaf.com. Web: Aegean Tobacco Exporters Association, Ataturk Cad. No: m. Web: www. www.tribac.com. Personnel: A.C. Masi, shipping director; R.I. Glenn, director (alternate); S.A. Marshall, finance director; Ace Interactive Ltd., Unit 3, 94 Charlton Road, Andover, 382, Alsancak, Izmir Turkey. M. Gange Harris, leaf35220, director; C.D. Le Patourel, managing Tel: +90 232 463 69 oun Khouri. Hants SP10 3JZ, United Kingdom. Tel: +44 1264 350 424. director. Business Type: Leaf Dealers. Fax: +44 1264 356 281. Email: sales@ace-interactive.com. 50. Fax: 232C.P.463 39de Castilhos 41. 1021/31, Email: Web: www.ace-interactive.com. Personnel: Barry austin,+90 Afubra, 1021, Rua Julio Santa eib1@egebirlik.org.tr. operations director; Keith Tarrant, quality manager; Michael Cruz do Sul, RS 96800, Brazil. Tel: +55 51 371 13244. undavinCole, managing director. Business Type: Suppliers. Business Type: Associations. Web: www.egebirlik.org.tr. Personnel: Sezmen Alper, sec. Products: Classifying Equipment, Grinding Wheels, Knives, Airco DIET, 110 Allen Rd., Liberty Corner 07938, United AG Sales & Service, 1185 Pineridge Rd., Norfolk, VA 23502, Metal Detectors, Spare Parts. 863 2354 576. States. Tel: +1 908 626 2700. Fax: +1 908 626 9650. Email: United States. Tel: +1 757 855 0191. Fax: +1 757 855 4155. manager. Business General; Tahir Kanlikuyu, department aircodiet@aircodiet.com. Personnel: M. Auerbach, president; Ackerman and Baynes LLC., 4211-15 Erdman Ave., Business Type: Suppliers. Products: Agricultural Chemicals, K. Laigaard, projects director. Business Type: Suppliers. co@yahoo.com. Baltimore, MD 21213-2698, United States. Tel: +1 410 342 Agricultural Equipment & Machinery, Fertilizers, Tear Tapes. Products: Expanded Tobacco, Tobacco Expansion Systems Type: Associations. 2216. Fax: +1 410 563 3971. Email: matt.smith@ackbay. (CRS), Tobacco Expansion Systems (DIET), Tobacco Expansion Agency for Dematic Corp., 507 Plymouth Avenue, N.E., com. Web: www.ackbay.com. Personnel: Matthew Smith, Saamir Khan, Systems Machinery. Grand Rapids 49505-6029, United States. Tel: +1 616 913 Sales. Business Type: Suppliers. Products: Drying Machinery, 7700. Fax: +1 616 913 7701. Email: usinfo@dematic.com. Feeders, Rotary Dryers, Spare Parts. Airco DIET AS, Snaremosevej 27, Fredericia 7000, Denmark. AER PremiumWeb:Electronic Cigarettes, www.dematic.com. Business Type: Suppliers. Products:5130 Tel: +45 Avenida 76201530. Fax: +45 76201531. Email: aircodiet@ Adamantine Precision Tools Ltd., 501 Research Rd., Belts & Belting, Conveyor Systems, Packaging Machinery, aircodiet.com. Web: www.aircodiet.com. Personnel: Asbjorn Richmond 23236-3090, United States. Tel: +1 804 794 9615. Storage Warehousing. Schwert, managing director; Kel Laigaard, director. Business Encinas,Business Carlsbad, California 92008, United States. Tel: (800) Fax: +1 804 794 9514. Email: sales@Fi-Tech.com. Type: Suppliers. Products: Processing Machinery. Agio Cigars, Wolverstraat 3, 5525 AR Duizel, Netherlands. Suppliers. Products: Grinders, Grinding Wheels, Knife m 1000Type: AB, Tel: +31 497 58 25 00. Fax: +31Suppliers. 497 51 64 06. Email: info@ Grinders & Sharpeners, Spare Parts. Air-cured Tobacco Assn., P.O. Box 1979, BMZ Tobacco 570-6350. Business Type: Products: Electronic agiocigars.nl. Web: www.agiocigars.com. Business Type: Auction Floors, Willowvale, Harare, Zimbabwe. Tel: +263 4 20 628 Adams 7697. International Ltd., 5/26-29 Saladang Road, Silom, Cigar Manufacturers, Product Manufacturers. 621 331 4. Fax: +263 4 614 489. Email: acta@africaonline. Cigarettes. Bangrak, Bangkok 10500, Thailand. Tel: +66 2 233 9818. co.zw. Business Type: Associations. Agricultural Development & Marketing Corp., P.O. Box

Aluminu BMJ (Ind ColourPac Eastern Co Edelstein KneX Wor Novelis De

AD DIMON Gorica, Industriska Bb, Vinica, Macedonia. Tel: +389 33 360 832. Fax: +389 33 360 832. Personnel: Simon Green, regional director Europe (based in UK); Arie Maan, Jr., country manager. Business Type: Leaf Dealers. Office: DIMON MD AD, 11 Nov Belgrad, Kavardarci, Macedonia. Tel: +389 43 414 603. Fax: +389 43 414 605.

Andover

3052, Limbe, Malawi. Tel: +265 64 00 44. Fax: +265 64 04 86. Personnel: B.D. Kandeya, tobacco marketing manager;

Akay Filtips, 21/24B Nariman Bhawan, 227 Nariman Point, Mumbai 400021, India. Tel: +91 22 2043583. Personnel: Ajit

F.A.Read’s Jumbe, g.m.; A.M.B. KythembaNew Mwale, asst.Castle, g.m. BusiV. Shah. 19720, Business Type: Suppliers. Products: Filters. AET Films, 15ness Way, DE United Type: Associations, Leaf Dealers. Akiki’s SARL, Nahr Ibrahim Akiki Bldg., Jounieh 1899, Agrimmcor Ltd., Registered Office: Post Box 15, Mangalagiri Lebanon.326 Tel: +9615501. 9 440739. Fax:Email: +961 9 901934. Email: States. Tel: +1Rd., 302 326 5500. Fax: +1 302 takiki@akikis.com. Web: www.akikis.com. Personnel: T C Guntur, A. P. 522001, India. Tel: +91 863 222 261. Akiki, director; Y Akiki, director. Business Type: Cigar ManuFax: +91 863 356701. Personnel: B.V.S. Raju, executive. info@aetinc.com. Web: www.aetfilms.com. Bill facturers,Personnel: Cigarillo Makers, Product Manufacturers. Business Type: Leaf Dealers. Swain; Denis Alexander; James R. Rich; Ronald N. Rodeck. Tobacco International Buyers’ Guide & Global Directory 2018 79 Business Type: Suppliers. Products: Film (Polypropylene).

AET Sales, 4601 Olde Forest Drive, Greenboro, North Carolina 27406, United States. Tel: +1 336 674 0100. Business Type: Suppliers. Africaleaf (Malawi) Ltd., Plot 29/173B Alimaunde, P.O. Box 40012, Kanengo, Lilongwe 4, Malawi. Tel: +265 1 710 914. Fax: +265 1 712 417. Email: leaf@africaleaf.com. Web: www.tribac.com. Personnel: A.C. Masi, shipping director; R.I. Glenn, director (alternate); S.A. Marshall, finance director;

Tel: +1-212-391-2060 • sales@tobaccointernational.com

Peramb 2662 3 sbidis.c directo Manufa Ahlstr Bois C labelpa Ahmed 75700 25725 ahmed Tapes, Aiger Plovdiv Fax: + aiger.c marke Michae Suppli Cigare Machin Cutting Materi Office:

CALENDAR OF EVENTS Please check event websites for the most current COVID-19 scheduling updates.

June 11–13, 2020 CANCELED 7th Global Forum on Nicotine (GFN 20) Marriott Warsaw Hotel, Warsaw, Poland. Web: gfn.net.co; isontech.info. July 10–14, 2020 CANCELED PCA 2020 / 88th Annual Convention & International Trade Show Sands Expo & Convention Center, Las Vegas, Nevada, USA. Premium Cigar Association, Web: premiumcigars.org.

tobaccointernational.com

The authority on the tobacco industry since 1886

January/ February 2020

85th EDITION

2020

BUYERS’ GUIDE & GLOBAL DIRECTORY

Product Manufacturers

A Year of Transformation for Swedish Match

Exporters & Importers Equipment & Machinery Supplies & Services

Manufacturing Cigarettes

RUSSIA DECLARES WAR ON TOBACCO ALTERNATIVES

SMOKING SURVIVES IN TURKEY DESPITE OPPOSITION

VERY LOW NICOTINE BRANDS PROPEL 22ND CENTURY

October 11–15, 2020 CORESTA Congress Vienna Hilton Hotel, Vienna, Austria. Contact: Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA), Web: coresta.org.

in Upstate New York THERE’S STILL A LOT OF LIFE IN NEXT GENERATION PRODUCTS

Associations

BOMHARD: THE NEW LEADER AT IMPERIAL BRANDS

TI_JanFeb20_CVR1.indd 1

September 27–30, 2020 74th TSRC (Tobacco Science Research Conference) Westin Boston Waterfront, Boston, Mass., USA. Web: tsrcinfo.com.

Mohawk-Style

Leaf Dealers, Growers & Processors

BG20•CVR_001.indd 1

September 18–22, 2020 CANCELED InterTabac/InterSupply 2020 Messe Dortmund, Dortmund, Germany. Trade fair for tobacco products and smoking accessories co-located with InterSupply, trade fair for the production of tobacco goods, e-cigarettes, pipes and shishas. Web: intertabac.de.

March 2020

2/13/20 1:48 PM

2/24/20 11:45 AM

WHY THE FRENCH TOBACCO MARKET KEEPS DECLINING

MYANMAR’S SMALL CIGARETTE MARKET: POISED TO GROW?

ARE THE GLORY DAYS OVER FOR DARK TOBACCO?

TI_Mar20_CVR1.indd 1

3/30/20 12:27 AM

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ADVERTISER INDEX Airco Diet ................................................................... 14

HTMS ........................................................................ 32

ARD Filters ................................................................ 19

JEB............................................................................ C3

BMJ......................................................................... 4, 5

Socotab ....................................................................... 3

Boegli-Gravures SA .................................................... C2

Sumatra ..................................................................... 15

delfort Group ...................................................... 7, 9, 11

Universal Leaf Tobacco Company, Inc. ...................... C4

34 TOBACCO INTERNATIONAL APRIL/MAY 2020

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