Tobacco International - Jan/Feb 2019

tobaccointernational.com

The authority on the tobacco industry since 1886 January/Feburary 2019

How Will Cannabis be Processed in Coming Days?

HEMP BECOMES A REALITY IN U.S. AGRICULTURE.

GLOBAL LABS: A REPUTATION FOR RELIABLE TESTING.

THE MACRO TRENDS IN THE CURRENT TOBACCO INDUSTRY.

THE PLACE OF FLAVORINGS IN TODAY’S TOBACCO CLIMATE.

A Passion For Excellence

FCV BURLEY ORIENTAL

Finest leaves for perfect blends

info@staragritech.com www.staragritech.com

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JANUARY/FEBRUARY 2019

TI TABLE OF CONTENTS 16

A LOCKWOOD PUBLICATION

20

20

tobaccointernational.com

The authority on the tobacco industry since 1886 January/Feburary 2019

20 24

How Will Cannabis be Processed in Coming Days?

HEMP BECOMES A REALITY IN U.S. AGRICULTURE.

GLOBAL LABS: A REPUTATION FOR

RELIABLE TESTING.

THE MACRO TRENDS IN THE CURRENT

TOBACCO INDUSTRY.

THE PLACE OF FLAVORINGS IN TODAY’S TOBACCO CLIMATE.

ON THE COVER FEATURES 16 Global Labs Built a Reputation for

28

Reliable Pesticide Residue and Tobacco Constituent Testing. Staff Report

20

Trends in the Tobacco Industry.

Just how will they affect developments in the broader industry? By Dr. Iqbal Lambat, Star Agricraft

24

Cannabis Processing in Coming Days? A small company in North Carolina just might lead the way.

By Chris Bickers, Editor-in-Chief

32 32

32

Planting Decisions Crucial for U.S. Growers. There are several problematic issues but the main one is labor.

34

28

The Place of Flavorings in the the Current Tobacco Climate. By Dr. Roger Penn, La Casucha Consulting SAS

Hemp Becomes a Reality in U.S. Agriculture. Industrial production could move from concept status to the real thing this year.

At delfort, we’re passionate about ground-breaking innovations and progressive thinking. And we rely on a simple formula to help us deliver excellence every time: tailor-made solutions that fit perfectly with your needs.

thinstar plus 60gsm

The future of Cannabis processing may have been born at a small factory in Wilson, N.C., U.S.A. Charles Evans, v.p., and Sam Levy, v.p. of sales and marketing, shown with the Evans MacTavish Bud Packer. See page 24.

As the global innovation leader in special and functional papers, we offer specialized products, outstanding services and customized solutions. Committed to contributing to the success of our local and global industrial customers, we at delfort deliver exceptional results through collaboration, expertise and technology.

5PCBDDP *OUFSOBUJPOBM is printed exclusively on delfort‘s thinstar plus 60gsm.

6 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

DEPARTMENTS 8

Editorial

10 TI Digest 32 Leaf News 36 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.

how do you guarantee process leadership?

TI EDITORIAL

PUBLISHER & PRESIDENT

Robert M. Lockwood EDITOR-IN-CHIEF

Fair is Fair, says Senator, Even When We’re Talking About Menthol

Christopher Bickers

Most individuals in the tobacco states who have expressed an opinion on the legalization of hemp production expressed a favorable one.

But the senior Senator from North Carolina, Richard Burr, who in November had bitterly opposed the proposal of the Food and Drug Administration to ban the use of menthol in cigarettes, took the opportunity last month to point out that menthol might well be less damaging than cannabis.

“Understand that if you begin to loosen up the legal use of cannabis, then we’re going to hold you to the same standards you’ve displayed for everything else,” he said on the floor of the Senate, addressing the FDA. “Everything that you hold a drug manufacturer to, that you hold a drug device manufacturer…and, quite honestly, that you hold the tobacco industry to.”

“If you’re worried about burning a product and inhaling it into your lungs, you better be just as concerned about it as it relates to marijuana,” Burr added.

Burr suggested that there might be an analogy between Canada’s 2017 ban on menthol products to its legalization of recreational marijuana last year. The same thing could happen in the U.S., Burr said. “This is eerily similar to Canada a few years ago, when they banned menthol products,” Burr explained. “How did they follow that up? This year, they legalized cannabis. Maybe that’s the route we’re on.”

For the short term, said Burr, the marijuana industry should be regulated just as tightly as the tobacco industry.

Speaking of North Carolina, quite a bit of this issue is centered on developments there and more particularly in the Eastern N.C. town of Wilson. On page 24, I report on the success enjoyed so far by Evans MacTavish Agricraft in designing and manufacturing machinery to process cannabis. You will be intrigued at what they are doing. And on page 16, we present an update on Global Labs, the internationally renowned pesticide residue and tobacco constituent testing facility. You will be surprised to learn—or maybe you won’t--about some of the new programs that could be coming up. In other articles, regular TI contributor Iqbal Lambat outlines the current “Macro” trends in the tobacco industry, and the noted flavorist Roger Penn addresses the place of flavorings in the current tobacco climate. And check out our short item pages TI Digest and Leaf News for timely reporting on the latest events, including how hemp is becoming a reality in U.S. agriculture (page 32) and why the decision on how much tobacco to plant is especially critical for farmers this year (page 32).

DIRECTOR OF EXHIBITIONS

PRODUCTION COORDINATOR

Melinda Ayala Frank B. Schuetze ACCOUNTANT

Roxanne Cordova Melendez accounting@lockwoodpublications.com

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)

ADVERTISING REPRESENTATIVES Robert M. Lockwood TEL: + 1-212-391-2060, ext. 109 EMAIL: robert@lockwoodpublications.com EUROPE

Frank B. Schuetze TEL: + 49 30 645 7212 FAX: + 49 30 6409 1350 EMAIL: Frank.Schuetze@lockwoodpublications.com SPECIAL SALES REPRESENTATIVE

George E. Lockwood TEL: + 1-413-548-9700 FAX: + 1-413-548-9727 EMAIL: lockwood.george@gmail.com

SUBSCRIPTIONS PO Box 424, Congers, NY 10920-0430,US. TEL: +1 800-766-2633, INTL: +1 845-267-3489 E-MAIL: subscribe@tobaccointernational.com

TOBACCO INTERNATIONAL MAGAZINE

— Chris Bickers, Editor-In-Chief

Lockwood Trade Journal Co., Inc. 3743 Crescent Street, 2nd Floor Long Island City, NY 11101, USA TEL: +1 212-391-2060 E-MAIL: editor@tobaccointernational.com

Volume 19, No. 1 TOBACCO INTERNATIONAL (ISSN 0049-3945 print; ISSN 2331-8481 online), established in 1886, is published six times a year, with two monthly issues (September & December) and four combined issues (Jan/Feb/Mar, April/May/June, DECEMBER, Oct/Nov) 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 ©2019

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.

8 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

we ·ķÛ ·ôÛ·× ·ÑķĚĻĻ the entire supply chain.

TI DIGEST CHINA

•

HCIG Opens China Representative Office QINGDAO—Hail & Cotton International

B.V. announced it has opened a China Representative Office located in Qingdao, China. This office will serve as an extension to the company’s international headquarters in Aalsmeer with specific responsibility for the division’s China operations. The office is staffed full time by Tony Jiang, who can be reached at + 86 138 8470 2098.

JAPAN Two new tobacco vapor products from JT TOKYO —Japan

Tobacco Inc. launched Ploom TECH+, a low-temperature tobacco vapor product, and Ploom S, a high-temperature tobacco vapor product, in its online store and in Ploom shops in Japan in late January.

These two new products are additional to the Ploom TECH vapor product currently on the market and highly popular among consumers for its features of no tobacco smoke smell and better usability. JT now offers the largest variety of tobacco vapor products in Japan through the introduction of the two new products.

The different heating temperatures provide specific product experiences:

The new Ploom TECH+ (left) and Ploom S (right) from Japan Tobacco.

•

Vype iSwitch (left) and Vype iSwitch Maxx (right) from BAT.

In the low-temperature heating segment, Ploom TECH offers a clear taste. The new Ploom TECH+ offers richer vapor and flavor to consumers.

In the high-temperature heating segment, Ploom S is suited to consumers who want to enjoy an authentic and familiar tobacco taste.

“With the launch of Ploom TECH+ and Ploom S, we are taking a further step on our Reduced-Risk Products journey in Japan,” said Mutsuo Iwai, executive vice president and president of the tobacco business. “Ploom TECH+ will leverage the unique features of low temperature heating devices already seen in our successful Ploom TECH products, such as less smell and increased usability, while Ploom S enables us to enter the high-temperature heating segment.”

UNITED KINGDOM A new vaping technology based on a blade LONDON —British

American Tobacco (BAT) launched two new e-cigarettes in December: Vype iSwitch and Vype iSwitch Maxx.

A statement from BAT says the new products are powered by the new vaping technology Vype “puretech” as the company seeks to provide a more satisfying option to adult smokers who haven’t found a satisfactory vaping alternative.

Vype iSwitch and iSwitch Maxx are currently available for purchase in five of BAT’s stores in London. The company plans to roll them out further in the UK and online in 2019.

The recommended retail price for iSwitch is £29.99 and iSwitch Maxx is £49.99. A pack of two puretech blade cartridges is £8.99.

BAT hopes this limited launch will facilitate consumer interaction with the new products ahead of a wider roll-out.

Elly Criticou, BAT’s Vapor Category

10 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

Director, said, “We are delighted to be bringing this ground-breaking technology to UK smokers and nicotine users.

In a new and emerging consumer category, with rapid innovation, it is important that we continuously look for ways to improve our consumer offering.

“BAT believes that Vype iSwitch products offer adult smokers a more satisfying—smoother, richer and more luxurious—vaping experience than ever before.

“We don’t want smokers to have to compromise with vaping – we want to deliver best-in-class products that satisfy various consumer preferences.”

The recommended retail price for iSwitch is £29.99 and iSwitch Maxx is £49.99. A pack of two puretech blade cartridges is £8.99.

This limited launch is intended to facilitate consumer interaction with the new product so that the company can take learnings and consumer feedback ahead of a wider roll-out.

UNITED STATES U.S. Tobacco Cooperative Appoints New CEO RALEIGH, N.C.—The Board of Directors of U.S. Tobacco Cooperative Inc. (USTC), has named Oscar J. House, III Chief Executive Officer and President effective January 15, 2019.

House joined USTC in January 2018 as the senior vice president of manufacturing at USTC’s manufacturing facility in Timberlake, N.C. Prior to join-

joint performance With our creative collaboration we achieve high process competencies and leadership across the entire supply chain.

delfortgroup.com

TI DIGEST South Distribution and King Maker Marketing, Inc. USTC, through its subsidiaries, also produces consumer products for the U.S. market under brand names of Wildhorse, 1839, Shield, 1st Class, Ultra Buy and Traffic.

Universal to supply Philippine tobaccos to PMI RICHMOND,

UNITED STATES ULTC named Agribusiness of the Year BARBOURSVILLE, VA—Universal Leaf Tobacco Company of Richmond received the 2018 Agribusiness of the Year Award from the Virginia Agribusiness Council late last year. Council Board Chairman Kern Houff presented the award at the 2018 Virginia Agribusiness Council Annual Meeting in Barboursville, Va. The Council’s Executive Director Kyle Shreve said at the presentation, “We congratulate them on this well-deserved award. Their track record of innovation and adaptation has made them a global leader in the industry.”

Shreve also took the opportunity to congratulate ULTC personnel on their 100th anniversary.

Above, left to right: Trevor Simmons (ULTC), Mauri Winegardner (ULTC), Kyle Shreve (VAC Executive Director), Lea Scott (ULTC), and Kern Houff (VAC Board President).

ing USTC, House was the director of operations for Phillip Morris International with oversight of their Bogota, Colombia operations. Prior Oscar J. House III to that, he served as the director of operations of PTHM Sampoerna in Jakarta, Indonesia. And earlier, House held multiple management roles at Liggett Group, Inc. “Oscar House is an excellent selection for this role. The Cooperative has a strong legacy of proudly delivering exceptional service and products to our customers, and House is committed to that tradition,” said Jimmy Hill, farmer chairman of USTC. House said at the time of the announcement, “I am excited to begin this new chapter. I’m ready to lead USTC

and its subsidiaries to new levels as we continue operations as a world-class leaf and consumer products organization,” said House.

House will have responsibility for the day-to-day activities of the consolidated organization as well as the development and implementation of annual, long term, and strategic plans.

He will report directly to the USTC Board of Directors.

U.S. Tobacco Cooperative Inc. is a grower owned marketing cooperative located in Raleigh, N.C. The cooperative processes U.S. flue-cured tobacco grown by its 650 grower members in Florida, Georgia, South Carolina, North Carolina and Virginia. The tobacco is processed and sold as raw materials to cigarette manufacturers worldwide.

Subsidiaries of USTC include U.S. Flue-Cured Tobacco Growers, Premier Manufacturing, Franchise Wholesale (d/b/a Wildhorse Distributing), Big

12 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

VA . — Un i ve r s a l

Leaf Philippines, Inc. (ULPI) will increase its purchases of leaf tobaccos in the Philippines as part of a new leaf supply arrangement for the Philippines with PMI. Previously, an affiliate of PMI in Zimbabwe purchased leaf tobaccos from its own contracted growers and processed that tobacco in its own facility.

Starting with the 2019 crop, the affiliate will purchase processed tobacco from Universal, said George C. Freeman III, chairman, president and chief executive officer of Universal Corporation.

The new arrangement is expected to provide important supply chain efficiencies and is indicative of the strong commitment of the two companies to the grower communities in the Philippines. It also documents PMI’s intent to remain a major purchaser of Philippine-grown leaf tobacco.

Universal initiated operations in the Philippines in the late 1960s.

“We are very excited about this new opportunity to continue to meet the evolving needs of one of our long-standing global business partners, while expanding our leaf purchasing and grower support services in the Filipino grower communities,” said Freeman. “The expansion of direct contracting by ULPI will provide procurement synergies and economies of scale that will promote efficient leaf utilization of tobaccos supplied to PMFTC and our other customers, and will support the competitiveness of Philippine tobaccos in the global leaf markets.”

84th EDITION

2019 BUYERS’ GUIDE & GLOBAL DIRECTORY

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Tobacco International

Buyers’Guide

& Global Directory

Enhance your listing by advertising in the 2020 Edition Tobacco International Buyers’ Guide and Global Directory is an essential reference tool for the tobacco industry and supplier companies all over the world. As an advertiser, you are guaranteed: • Year-Long Exposure • Worldwide Distribution

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 Armtabak d S C

Consulting Knapp AG

XXXXXXX — XXXXXXX

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

A

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

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 Alliance One ArgentinaKnapp SA Philip Morris International (Australia) Ltd Bangladesh Tobacco Industries Ltd . Ltd Bonpland Leaf SA (BLASA) British American Tobacco Bangladesh Supplier Coop. de Salta B.A.T. Co. Ltd Kukla Waagenfabrik GmbH & Co. KGHusna Anzpac Services (Australia) Pty. Ltd Cooperativa de Tabacalera de Tucuman Ltda 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 see Filter 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)

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)

Apron Machinery

Adhesive Applicators

Agricultural Chemicals

Diamond Metal Screens Pvt. Ltd. (India) Evans-MacTavish-Agricraft, Inc. (United States) Godioli & Bellanti SpA (Italy) Sargent’s Sons Division (United States) V.I.T. SA (Greece)

Fi-Tech, Inc. (United States) C.B. Kaymich & Co.ApronLtd. Pins (United Kingdom) Diamond Metal Screens Pvt. Ltd. (India) PAK-TEC, Inc. (United States) Art Paper & Board Oy (Finland) SPI DevelopmentsTervakosi Ltd. (United Kingdom)

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)

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.

see Homogenized Tobacco

Band Tobacco Machinery

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)

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

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

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)

Belts & Belting 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)

Bale Slicers

Vintero Corporation (United States)

Adhesives

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.

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)

t

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, 79 4633. Fax: +44 1 494 794 644. Personnel: Colin Bunting, Africaleaf (Malawi) Ltd., Plot 29/173B Alimaunde, P.O. 3300. Fax: +55 Cigarette Filter Tip Machines, Cigarette Making marketing director; Frank Daugherty, sales director; Box 40012, Kanengo, Lilongwe 4, Malawi. Tel: +265 1 710 Machinery, Cigarette Tax Stamping Machines, Cutters & Evason, technical director. Business Type: Suppliers.

914. Fax: +265 1 712 417. Email: leaf@africaleaf.com. Web: Cutting Machines, Packaging Machinery, Aegean Tobacco Exporters Association, Ataturk Cad.Rebuilt No:Machinery m. Web:John www.

Products: Weight Control Equipment. www.tribac.com. Personnel: A.C. Masi, shipping director; R.I. Materials-Non Tobacco, Spare Parts, Wrapping Machines.

Glenn, director (alternate); S.A. Marshall, finance director; Office: Aiger Group AG. Tel: +41 41 7267873.

Ace Interactive Ltd., Unit 3, 94 Charlton Road, Andover, 382, Alsancak, Izmir Turkey.

232 463 69LLC. M. Gange Harris, leaf35220, director; C.D. Le Patourel, managing Tel: oun Khouri.

Email:+90 office@hqgroup.aiger.com.

Aiger USA Hants SP10 3JZ, United Kingdom. Tel: +44 1264 350 424. director. Business Type: Leaf Dealers.

Tel: +1 412 616 2833. Fax: +1 412 251 0466. Email: sales@ Fax: +44 1264 356 281. Email: sales@ace-interactive.com. usa.aiger.com. Aiger Far East Ltd. Tel: +65 9272 2203.

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.

Email: kevin.ang@aiger.com. Aiger UK Ltd. Tel: +44 (0) 121 operations director; Keith Tarrant, quality manager; Michael Cruz do Sul, RS 96800, Brazil. Tel: +55 51 371 13244.

230 1768. Email: sales@aiger.com. 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: States. Tel: +1 757 855 0191.

Fax: +1 757 855 4155. manager. Business General; TahirUnitedKanlikuyu, 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, Registered Office: Post Box 15, Mangalagiri Lebanon.326 Tel: +9615501.

9 440739. Fax:Email: +961 9 901934. Email: States. Tel: +1Agrimmcor 302Ltd.,326 5500.

Fax: +1 302 takiki@akikis.com. Web: www.akikis.com. Personnel: T C Rd., 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;

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:

www.tobaccointernational.com • sales@tobaccointernational.com

TI DIGEST

SINGAPORE Essentra appoints a new global innovations director SINGAPORE—Essentra,

leading global supplier of specialist filters and scientific services, has appointed Hugo Azinheira as Global Innovations Director. Based in Essentra’s Singapore facility. Azinheira will bring 15 years of product and marketing innovation experience in the tobacco industry to the team.

Azinheira comes to Essentra from JTI, where he spent 10 years in affiliate, regional and globHugo Azinheira al functions. While supervising all JTI’s Asia Pacific markets, he was responsible for defining and implementing the strategies for the successful turnaround of JTI’s portfolio in the region.

Earlier, he worked in new product development at PMI in Switzerland.

Since December 2018, Azinheira, who holds a degree in materials engineering from Technical University of Lisboa and did post-graduate study in innovation management from Université Catholique de Louvain, has taken Patrick (Paddy) Meredith’s role at the company.

Meredith, who joined Essentra in 2003, has been promoted to Strategy and Business Development Director.

With over a decade of experience, he has a record of managing innovation, marketing and commercial development.

He will continue to apply his knowledge of the industry to strategically grow the business globally going forwards.

Azinheira said, “I’m delighted to join the Essentra team in Singapore.

Having worked in this industry for 15 years I have a thorough understanding of the market and the new products to

come, though believe the role of Global Innovations Director will pose an interesting challenge.”

Meredith added, “We think Azinheira will be a great addition to the team and are pleased to welcome him to the company.”

ZIMBABWE Hail & Cotton to acquire 50% of Zimbabwean leaf firm HARARE —Hail & Cotton International Group (HCIG) announced it will acquire a fifty percent equity stake in the Zimbabwean leaf supplier Boost Africa Traders Ltd. The transaction is expected to close by April.

“We believe this investment creates synergies for both companies,” said Andre Spies, HCIG’s president of international operations. “The combination will allow us to continue to grow, and provide added value, service and quality to our combined client base.”

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TESTING SPOTLIGHT

16 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

How Global Labs built a reputation for reliable tobacco testing Over the course of its 60-year history, Global Labs of Wilson, N.C., has build a strong portfolio of tobacco testing services designed to meet the ever-change needs of regulation-burdened tobacco companies. Staff report ounded in 1958, Global Laboratory Services, Inc. (“Global Labs”) tests tobacco, cigarettes, cigars, e-liquids, snus/snuff, shisha and vapor. It also provides testing for FDA, TPD and other legal/regulatory requirements and performs quality control testing, stability studies, and research and development for special projects.

The company has built a reputation for reliable pesticide residue and tobacco constituent testing. Since expanding its analytical testing services in 2009, it has built a solid reputation in testing for Harmful and Potentially Harmful Constituents (HPHC) in finished products and mainstream smoke, as established by the Food & Drug Administration’s Center for Tobacco Products.

Global Labs’ analytical testing experience is not the only thing that sets it apart. According to Kim Hesse, Global

F

Labs’ Business Development Manager, “Global Labs is a wholly owned subsidiary of Universal Leaf Tobacco Company, Inc., and as such, has a depth of knowledge in agricultural, manufacturing, and quality regulatory concerns that is unsurpassed.”

In addition, “Our state-of-the-art testing facilities in Wilson, N.C., provide an excellent testing environment. Our highly trained, customer-focused chemists work hard to find the right solutions for our customers.”

Global Labs’ testing business is divided into seven main sections: 1) CPA (crop protection agents), 2) HPHC (harmful and potentially harmful constituents), 3) smoke, 4) metals, 5) basic constituents (sugars and alkaloids), 6) physicals, and 7) GMO. In addition to the seven testing sections, Global Labs has a team that develops methods.

JANUARY/FEBRUARY 2019 TOBACCO INTERNATIONAL

17

TESTING SPOTLIGHT The CPA section focuses on crop protection agents in tobacco and seed and the HPHC section focuses on all projects requesting HPHC analysis for FDA submissions.

In the smoke section, there are four areas: two are dedicated to cigarette smoke analysis, one is dedicated to cigar and shisha analysis; and the remaining area is dedicated to e liquid vapor analyses. Hesse believes Global Labs is poised for both near-term and longterm growth fueled in large part by the significant changes occurring in the tobacco industry.

“Currently, the greatest increase in our business is on the e cigarette and cigar sides. Much of the work is resulting from FDA or TPD regulations”, says Hesse. “A mandate that cigarettes and other tobacco products must contain less nicotine could mean an increase in testing demand for nicotine levels in smoke, tobacco and e liquid. Nicotine testing could become routine and a new mainstream analysis for many laboratories.”

With the increased focus on very-low nicotine products, Global Labs is adjusting its systems accordingly to accommodate for lower detection limits. The company has already tested products tagged as being very-low nicotine as well as products that should not contain any nicotine.

Hesse says, “We are here to assist the industry with whatever path it needs to follow. Currently, PMTA testing for the ENDS industry and testing for FDA regulatory compliance in the cigar industry are at the forefront. But as clients begin re working their products and making necessary changes to adapt to the ever-changing environment, their needs may change. We will change with them.”

Global Labs is in the middle of adding an additional 2,700 square feet of laboratory space to accommodate the increase in business. According to Hesse, “This expansion will allow us to handle a larger volume of work and help clients meet their deadlines in a timely fashion.”

Services Offered by Global Laboratory Services PESTICIDES AND OTHER CROP PROTECTION AGENTS (CPA): Tobacco, harvested products, wipes samples and finished products.

TOBACCO CONSTITUENTS: Nitrates analysis, sugar analysis, TSNAs, total alkaloids, secondary alkaloids, heavy metals and chloride analysis.

HARMFUL & POTENTIALLY HARMFUL CONSTITUENTS (HPHC) TESTING: Cigarettes (tobacco and mainstream smoke), e-cigarettes (tobacco extract, and vapor), RYO, little cigars and smokeless products.

PHYSICAL TESTING: Includes sand analysis, ash determination, moisture testing.

GENETICALLY MODIFIED TOBACCO (GMT): GMT testing for presence of 35S promoter and NOS terminator via real-time PCR. MOISTURE AND CHEMICAL CHECK SAMPLES: Global Labs produces and sells tobacco calibration samples for oven and continuous flow systems.

RESEARCH AND DEVELOPMENT: Global Labs provides research services focused on our customers’ needs, including special testing and method development and validation.

E-CIGARETTE TESTING AND E-LIQUID CONSTITUENTS: Heavy metals, humectants, nicotine and HPHC in vapor and reservoir, vapor pH, and puff count determinations.

PRODUCT ANALYSIS: Leaf product, pesticides, cut rag, HPHC, cigarette, nicotine, cigar, total sugars, reducing sugars, total alkaloids; e-cigarette, GMT /GMO; e-liquid; e-liquid constituents; snuff / snus / shisha.

Note: The lab is accredited to ISO 17025

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INDUSTRY OUTLOOK IQOS: Lackluster performance.

The Macro Trends in the Tobacco Industry How will they set the foundation for broader industry road maps in coming years?

By Dr. Iqbal Lambat, Star Agritech International s we close out 2018, it is appropriate to analyze some of the key shifts that have occurred in the last three to five years in our industry.

These might include such segments as leaf supply, equipment supply and nontobacco material suppliers.

A

The Changing Nature of Consumption Combustion cigarettes continued downward consumption as the huge Chinese domestic market made a large correction, declining some 400 billion units from 2017 to 2018. As a result, global cigarette consumption is estimated at 5.6 to 5.7 trillion units, down from its all-time high of 6.2 trillion units.

Growth continued in Indonesia, with 2018 consumption recorded at 365 bil-

lion units retaining its position as the second largest cigarette market in the world after China. A number of Asian markets have also entered the 100 billion club notably Vietnam and Bangladesh.

The illicit trade received less “headline news” but has continued to secure more share. In the European Union, some 10 percent of consumption was estimated as contraband and counterfeit. That equates to 60 billion sticks.

The more startling statistics appeared at the end of 2018–suggesting that in Malaysia, an island nation, now more than 60 percent of its consumption is smuggled from neighboring Asian markets.

And in South Africa, the largest cigarette market in Sub Sahara Africa, it is

20 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

now estimated that one out of every two cigarettes are smuggled. This equates to a level of contraband of plus 20 billion cigarettes in 2018.

And even in monopoly markets such as Tunisia, contraband reached a whopping 30 percent of its total consumption of 18 billion sticks. Combustion cigarettes are projected to continue their decline to below 5.4 trillion units by 2025.

The strong play by PMI on iQOS saw the heat not burn category continue its growth in only two major markets—Japan and South Korea, despite being launched in over 35 countries worldwide. Competition quickly followed from KT&G and a number of Chinese startups.

It’s safe to say that the performance of the category HnB has been, at best, lack luster. Remember that André Calantzopoulos, CEO of PMI, appealed at the September 2018 Concordia Annual Summit for Governments to promote and support HnB as a better and safer product for their citizens.

His speech highlighted the need to have a dialogue between the industry,

leaders, policy-makers, scientists, medical and public health professionals in order to provide the 1.1 billion people who smoke with better alternatives to cigarettes. This was obviously designed to promote iQOS given the reported US$ 4 billion plus that PMI has already invested on this category and which has placed undue stress on the Board and Management of PMI. An excerpt of that speech will perhaps make for colorful reading from the largest international tobacco company and maker of the largest combustion cigarette brand in the world, Marlboro: “I’m the Chief Executive Officer of a tobacco company. I’m here today because, as global leaders come together in New York for the United Nations General Assembly, this is the time and place to discuss today’s problems and their potential solutions. Smoking tobacco is a behavioral risk factor for Non-Communicable Diseases (NCDs). According to the World Health Organization (WHO), 40 million people die each year from NCDs. And tobacco smoking accounts for 7.2 million of those deaths. Public health experts project that the global burden of smoking-related disease will continue to increase in the future. This week is about different sec-

André Calantzopoulos, CEO of PMI, spelled out the lowest risk scenario last September.

tors coming together to take bold action for global progress. That’s why PMI is here. We are asking global leaders to enter into an honest, transparent dialogue with us. We are radically transforming our company to deliver a future without cigarettes. We have a duty to help create a better world for the more than 1 billion men and women who smoke today. We are committed to these people—and to the people who care about them. Their access to better choices means a better life for them and a better future for the sustainability of our planet, our economies and our communities. Our vision for a smoke-free future, which means a future without cigarettes, is one that many shares. This is why PMI is pioneering in the smoke-free category—to deliver a world without cigarettes. Our ambition is to convince all adult smokers who might otherwise continue smoking cigarettes to switch to smoke-free products, which are a much better alternative for them.

Yes, in an ideal world, all smokers should quit tobacco and nicotine consumption altogether. We fully agree with this. This is the lowest-risk scenario compared with cigarette smoking. But we don’t live in a world where this can or will happen automatically—or anytime soon.”

But HnB is a nicotine delivery device that generates smoke through heating rather than burning. Are we missing something in the statement “a cigarette free world?”

The Phenomenon that is Juul Next, on to a phenomenal success story: Juuls provide a nicotine hit that’s much more like smoking a cigarette than other e-cigs, and it’s not really a secret why—the company is very proud of its patented Juul Salts approach to nicotine delivery.

Those Juul Salts are compounds called nicotine salts, which also form in the heat-dried tobacco leaves used to make most-cigarettes. These nicotine salts are less harsh to inhale than the

straight-up “freebase” nicotine used in most regular nicotine vapes. It is the same kind of nicotine you get from smoking the air-dried tobacco used for pipes and cigars. Freebase nicotine can be absorbed through your mouth— but it’s also much less pleasant to inhale because of its “greater physiological (throat and chest) impact.”

Launched in 2015, Juul has ratcheted up phenomenal success in the USA, capturing 72 percent share of the vape market which has an estimated 10.8 million users. In its short four-year history, the brand generated revenues of US$ 1.1 billion in 2018, has a market valuation of US$ 38 billion. PM USA acquired 35 percent of the Company in the last quarter of 2018.

Now fueled through the PM USA distribution structure, Juul is expected to power the growth of this segment as well as continue to gain market leadership. And there are of course the international markets for future growth.

And the recent liberalization policies of medicinal and recreational marijuana are causing waves. The major international cigarette manufacturers and some international leaf merchants have already dived into the sector establishing greenfield operations and where possible entering the sector by way of acquisition. It is unclear yet what the consumer propo-

JANUARY/FEBRUARY 2019 TOBACCO INTERNATIONAL

21

INDUSTRY OUTLOOK sitions will be and how and when it will be further liberalized towards becoming a global product. But it is clearly a bull market with a lot of enthusiasm.

And how has all this impacted other segments of the tobacco industry?

Equipment & NTM Manufacturers With the continuous decline in multinational market shares, the top four international companies (PMI, BAT, JTI, IB) have been slow in rejuvenating their industrial factories. The emphasis has been on “renovate rather than replace,” slowing down sales at giant tobacco engineering companies such as Hauni and Comas.

The focus has been rather on creating equipment to produce HnB products which are far more complex than conventional combustion cigarettes. The order books for large scale green leaf threshing plants or primary processing

is dismally empty and will see further downsizing in the years ahead.

The same has been true at conventional NTM manufacturers where we now have overcapacity for most products. The HnB segment has not created the sea change to warrant investment in its small NTMs usage.

A Tobacco Derivatives Winner Center stage to the long-term success of HnB is Reconstituted Tobacco (Recon).

However not all types. Only Band Cast and Slurry types contain the ingredients and chemical structure to release smoke by heating at around the 270 degrees level.

HnB stix are manufactured with 100 percent Recon and no Tobacco. Global production capacity of these types is extremely tight. and investments in several new facilities will be called for when the segment does eventually take off.

22 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

H o w e v e r, a n o t h e r p i e c e o f game-changing legislation currently under discussion in the USA can further drive high demand on Recon. The FDA is proposing to legislate the level of nicotine in combustion cigarettes to below 0.5 mg nicotine.

If legislated, then cigarettes will have to be manufactured with significantly higher levels of recon in the cigarette blends as recon is an important key in reducing nicotine strength. Such legislation as we have seen in the past often migrates to international markets and can cause a huge demand on Recon. This of course will have a devastating effect on Tobacco cultivation in all origin’s worldwide.

We can certainly close the article by re-iterating that change is going to be very much in the mix in the short years ahead as we enter the 2020 to 2030 decade.

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EQUIPMENT FOCUS

Charles Evans, v.p., and Sam Levy, v.p. of sales and marketing, shown with the Evans MacTavish Bud Packer.

24 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

How Will Cannabis be Processed?

A small company in Wilson, North Carolina, just might lead the way. By Chris Bickers The industrial process of preparing Cannabis into cigarettes for the customer in the new dispensation is likely to be analogous to processing tobacco into cigarettes.

But it is not going to be the same.

Some characteristics are going to be substantially different.

“And much of the Cannabis processing equipment in use now will not be once the new industry is regulated,” says Sam Levy, vice president of sales and marketing. “Much is now done by hand.”

Levy, along with Charles Evans, vice president of the company, have come up with a cannabis cigarette production system that they think will find favor in this new industry. Following are descriptions of some of the key elements of the Evans-MacTavish-Agricraft system, and what they do: A new system The Cannabis Cigarette Maker automatically produces up to 500 complete cigarettes per minute then feeds to the packer.

The Bud Buster is designed to feed the Hemp flower buds, remove the stems and seeds (if any) and size the cannabis to fit into a cigarette without blocking the cigarette. It is also designed to match the production of up to 500 cannabis Smokes per minute.

All materials in contact with the Hemp conform to all requirements of the tobacco industry. Maintenance and cleaning are easy.

Evans MacTavish Agricraft Cannabis Smokes Packer automatically collates the Cannabis in Smokes the proper count,

loads the Cannabis Smokes into the pack and folds the flaps and glues them.

Smokes pack comes in 15-stick, 10stick or 5-stick packs, using a hard pack with a fold-and-tuck lid. Automatically loaded on our packer can be pre-printed to customer artwork and requirements.

Metal fabrication in Eastern N.C. The company has been in operation for 40 years. Initially named Evans’ Metal Fabrication, it was started in 1979 by three brothers—Bobby, Donald and Tony Evans—in a barn behind Tony’s house. It was a spare time venture at first. But by 1981, all three brothers were working full time at Evans. Tony retired in 1992, while Donald and Bobby served as president and vice president until they sold the company to the second generation of the Evans’ family in October of 2016. That included current president Amanda E. Barnes

“Much of the cannabis processing equipment in use now will not be once the new industry is regulated. Much is now done by hand.”

—Sam Levy, Vice President, Sales and Marketing, Evans MacTavish Agricraft, Inc.

A worker makes adjustment on an Evans MacTavish Bud Rolling machine.

JANUARY/FEBRUARY 2019 TOBACCO INTERNATIONAL

25

EQUIPMENT FOCUS

Above: The Evans Mactavish Bud Buster and conveyor network. Below: Evans MacTavish Agricraft President Amanda Barnes.

and Ray Evans Jr. as Secretary.

In 1998, Evans purchased its biggest competitor, MacTavish Machine Manufacturing Company in Richmond, Va., and combined forces to become a leader in the tobacco processing equipment industry.

In 2006, the company acquired the fertilizer handling and spreading equipment product line from Agricraft Company.

In January of 2008, the company changed its name to include all facets of its organization, becoming Evans MacTavish Agricraft, Inc. The manufacturing facility now covers over 140,000 square feet located on twelve acres of land in Wilson. The company now has both domestic and international customers.

Evans MacTavish Agricraft Inc. has as its goal to be the front runner when it comes to process machinery. “The same

philosophy has been carried into the Cannabis industry. We are proud that all the key machinery has been designed and manufactured in the United States.”

The reaction to legalization “The era of hemp prohibition is over!” one website representing dozens of hemp-related companies gleefully announced late in December.

The occasion was the passage by Congress and signing by the president of legislation that establishes hemp as an agricultural commodity. This permanently removes it from regulation as a controlled substance.

“The Drug Enforcement Administration now has no possible claim to interfere with the interstate commerce of hemp products,” said Jonathan Miller of the U.S. Hemp Roundtable. “An exciting, emerging, multi-billion-dollar hemp industry is now unleashed, providing eco-

26 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

nomic opportunity to farmers and small businesses all across America.”

Among the many American companies which expressed delight over legalization, Clarence, N.Y.-based 22nd Century Group Inc., which operates a tobacco manufacturing plant in Mocks-

ville, N.C., told the Winston-Salem, N.C., Journal that it expects to directly benefit from the U.S. Farm Act. “The law includes a section that legalizes the commercial cultivation of hemp nationwide,” the newspaper said.

“The main impact will be in enhancing its [22d’s] research activities related to low-THC Cannabis sativa L.” The bill legalized certain elements of hemp containing no more than 0.3 percent THC (the compound in cannabis responsible for psychotropic effects).

Cannabis plants with higher levels of THC, such as marijuana, remain illegal under federal law.

Another small company boldly announced that legalization would allow it to “declare war on Big Tobacco.”

“With the U.S. Farm Bill now the law, we will now enter the cigarette market and attempt to put Big Tobacco out of business,” said Prohibition Brands’ CEO Brian Laoruangroch. “We have been preparing the last six years for the passage of the Farm Bill. Today, we begin a new era where smoking cigarettes and tobacco are no longer synonymous.”

But not every tobacco company will make a move. Philip Morris International CEO Andre Calantzopoulos said in an interview after the bill’s passing that his company is in no hurry to enter the cannabis market. Why? Different international markets are regulating hemp one way and others another, meaning there will be logistical problems for companies selling these products in many environments.

Calantzopoulos didn’t appear at ease with the research on cannabis. Better understanding of marijuana is needed in order to assess its potential.

Philip Morris remains determined to gain global acceptance for its IQOS heated-tobacco system, he said, and it wants to concentrate on demonstrating the advantages of IQOS over traditional cigarettes rather than getting distracted by entering a brand-new market.

cultivate the art of taste The enjoyment of tobacco has traditionally always enriched people’s senses all over the world. The harmonious interplay of sensory created by Hertz & Selck. Progress and tradition going hand in hand. www.hertz-selck.de Hertz&Selck GmbH & Co. P. O. Box 20 16 64 | 20206 Hamburg, Germany Tel. +49 [0]40-43 25 76-0 | Fax +49 [0]40-43 25 76-50 info@hertz-selck.de

JANUARY/FEBRUARY 2019 TOBACCO INTERNATIONAL

27

COMMENTARY

The place of flavorings in the current tobacco climate Historically, bans on desirable products have proven to open the doors to new problems. Finding the correct balance between regulation and consumer safety is key.

By Dr. Roger Penn, La Casucha Consulting SAS s a longtime global professional in the art and science of the flavoring of all tobacco-containing products, in order to develop final market-ready products that provide reduced harm to consumers, it is indeed reassuring for me to see that the current FDA focus in the USA is directed toward the correct control and understanding of low nicotine tobacco, the debate on flavors in e-cigarettes and the controversy over heat-not-burn products.

Indeed, following the publication of the FDA statement of November 15,

A

2018, by Dr. Scott Gottleib, there has been much action by suppliers and manufacturers of products within those categories to attempt to comply with several of the major concerns stated in the cited document. Especially the aforementioned low nicotine tobacco, e-cigarettes and heat-not-burn products.

Certainly, the question of age verification is of utmost importance as a first level of protection of youth consumers. This will function both in physical shops/outlets and will also add additional safeguards in on-line purchasing.

These practical safeguards guarantee obstructing access to those potential

28 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

consumers who are legally underage.

However, if we consider the “relative” properties of certain flavor families to entice potential consumers or facilitate the consumption of certain tobacco-containing products, i.e., cigarettes and cigars, then we are into a very subjective and somewhat emotive ambiance: How can we not support providing the smoking/vaping/inhaling populations of the world with reduced risk products?

As already proven in both in vitro and in vivo systems that have some flavoring characteristics which indeed “assist” the legal and adult choice of having these systems available on the market? As I am a practicing flavor expert and also a practicing toxicologist, this question is a very concerning one.

Certainly, the last 10 years have seen major acceleration of the legal and regulatory controls around the world of the various tobacco and related products on the markets. It is noted especially in the USA with its FDA legislation and in Europe with the Tobacco Product Directive (TPD2).

However, there are still a great deal of contentious issues regarding the use of certain flavoring families among these existing market products, whether it be so-called “kiddy” flavors—described as sweet and fruity flavors— or the contentious family of menthol/ mint, the latter group expected to be banned in 2020 in European market products and still under the FDA microscope in the USA. As a basis for a conundrum then, should we not reflect on what normally can emerge when bans on liked products are imposed? In the USA when alcohol was prohibited, consumption went underground and opened the doors to all sorts of malpractice and total lack of control of the substances that were being sold as “alcohol.”

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84th EDITION

October/November 2018

2019 BUYERS’ GUIDE & GLOBAL DIRECTORY Product Manufacturers

A Race to the Future

Ferrari Teams with PMI in a Global Communication Initiative

Exporters & Importers Which Way Will the

Indonesian Tobacco Market Go?

Equipment & Machinery Supplies & Services Leaf Dealers, Growers & Processors

THE MAGICAL WORLD OF CIGAR LEAF

CIVIL UNREST RATTLES NICARAGUA TOBACCO SECTOR

HURRICANE FLORENCE SAVAGES US FLUE-CURED

Associations

IMPERIAL BRANDS LOOK TO A FUTURE BASED ON NGP

DESTRUCTIVE HURRICANES THREATEN U.S. LEAF SUPPLY

DODGING FDA’S REGULATORY BULLET ON VAPE PRODUCTS

THE QUEST FOR TESTING HEAT-NOT-BURN PRODUCTS

ZYN IN THE UNITED STATES: BETTER RESULTS THAN EXPECTED

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COMMENTARY

Should there not be a more open, pragmatic approach to the availability of controlled, flavored materials which will ensure consumer acceptability and enjoyment long term, than somewhat over reactive response, based on poor science and hearsay that denies the populations around the world safer products which will supply their demands? literally went down the drain, leading to an upsurge in potential public health threats due to use of substitute raw materials. Indeed, use of polluted/contaminated products occurred in these illegal outlets. Thus, are we not in danger of introducing a higher level of public health threats by banning products that have proven safer efficacy given the full epidemiological data, some of which is still to be harvested in these new product areas.

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Thus, taking all major indicators (a few of which I mentioned above) into account and most importantly putting public health safety in the forefront, should there not be a more open, pragmatic approach to the availability of controlled, flavored materials which will ensure consumer acceptability and enjoyment long term, than somewhat over reactive response, based on poor science and hearsay that denies the populations around the world safer products which will supply their demands?

Finally, just to drive another issue regarding the “balance” between regulations and consumer safety and given the massive controls/specifications/R&D expenditure applied to combustible tobacco products over the years: How can governments allow the massive explosion of legal use of cannabis plant products—especially in the smoked format— when there are absolutely no regulations or specifications for controlling the exposure of consumers to non-quantified amounts of the smoke? To name one, pyrolysis aerosol in unfiltered delivery format? Methinks this is another conundrum facing the regulators and developers.

The background of an authority on tobacco toxicology Roger Penn was born near Wolverhampton, England, pursuing an education which lead to a doctorate in teratology and medicinal chemistry. After first gaining a bachelor of science with honors in medicinal chemistry from Hatfield Polytechnic, he was invited to stay on to work on a doctorate in toxicology/teratology.

Once he earned his doctorate, he served on the staff of Food Industries—Unilever’s flavor company—for three years, then moved to British American Tobacco’s (BAT) Group R&D division in Southampton, England, where he served as a flavor specialist with toxicology training. He stayed six and a half years, before moving to Firmenich, where he worked in the marketing department in Geneva and helped commercialize the company’s research work for seven years, then moved to the Princeton, New Jersey, when Firmenich decided it wanted to beef up its operation.

He spent 4 1/2 years there.

Penn left Firmenich when that company decided to pull out of the tobacco business. He joined International Flavors & Fragrances (IFF). But IFF also pulled out of the tobacco industry, so after two years, Penn moved to Mane Fils, as director of flavor marketing. Later, he became director of the group tobacco business unit.

For the past two years, he has operated his own consulting business, La Casucha Consulting, in south France.

Roger Penn

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UNITED STATES Planting decisions crucial for growers O W E N S B O R O , K Y .—A

farmer from Shelbyville, Ky., attending the Kentucky Cattlemen’s Association meeting here in January told Tobacco International he will cut his tobacco operation back from 25 acres of burley in 2019 to 10 acres or so in 2019.

There are several sources of stress on his operation, but the main one he pointed to is scarcity of labor.

“If I make this cut, I will be able to use family labor to ‘barn’ my tobacco and prepare it for market,” he says.

“I have been able to find enough local labor to harvest [in the past] but it is just getting too hard to find them.”

H2A guest workers would be available but the farmer thinks he would need at least 70 acres to justify the management work that program would require. He doesn’t have the infrastructure to grow that much.

Another burley grower—who also grows dark tobacco—told Tobacco International he will hold at the 80 acres (both types) he had last season. But he had to think seriously about growing burley at all, because of poor market prospects.

“Dark is more prof itable now,” says the farmer, whose place is near Owensboro.

Also, the communications are better between him and his dark company than his burley company.

“I really think if it weren’t for the foreign workers I have working for me, I would switch to all dark,” he says.

The workers would have a hard time finding anything else if he cut back.

He grows dark air-cured. The equipment he uses is the same for dark air and burley.

Rob Glover of Bailey in eastern N.C. grows flue-cured. He plans to grow about the same size crop again even though 2018 was a disaster.

32 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

Above: Eddie Johnson, a farmer from Elkin, N.C., examines a new transplanter on display at the Southern Farm Show in Raleigh, N.C. on February 1. Sales were down compared to recent shows but still healthy considering the strictures on leaf production in this country.

“It seemed like we had our driest season and our wettest season in one year,” said Glover.

The hot dry summer left much of Glover’s crop in poor condition, then Hurricane Florence blew in.

“Half our tobacco was still in the field,” says Glover. “And it was the top half of the crop, which is the most valuable part.”

Much was lost in the field. And what was left was whipped around by 70 to 80 mile per hour wind gusts and drenched by 18 to 23 inches of rain. It caused the leaf to over ripen and turn yellow, then brown.

“The quality just wasn’t there.

The leaf we harvested was dark and burned-looking.”

Glover wound up losing 40 percent to 50 percent of the expected yield of his crop and about that much of the expected gross.

MALAWI The most tobacco-dependent country in the world BLANTYRE —Malawi has been identified as the most “tobacco-dependent” country in the world, although it only ranks thirteenth among global producers of tobacco (by weight in 2016). The finding comes from a report from the New York City-based Foundation for a Smoke-Free World.

In 2012, tobacco—Malawi’s most important cash crop—accounted for $654 million in foreign exchange earnings for the country.

This represented 59 percent of total export value as of 2016.

Tobacco leaf cultivation alone, the first step on the value chain, employed an estimated 451,000 people in 2016, 2.5 percent of the population.

TANZANIA Why production fell late last year DAR ES SALAAM —Tobacco

production fell in the third quarter of this year.

However, global prices remained stable. The Bank of Tanzania’s quarterly economic bulletin showed that tobacco production dropped by nearly a third in one year.

T h e r e p or t s h owe d 3 8 , 3 01. 4 tonnes were produced during t he third quarter of 2018, down from 53,849.7 tonnes during the corresponding quarter in 2017.

The decrease was attributed to late distribution of inputs and inadequate rainfall in tobacco-growing areas.

The bulletin showed tobacco production had been decreasing since 2015/16 when 87,000 tonnes were harvested, down from 105,900 tonnes in 2014/15. In 2016-2017, production was

UNITED STATES Hemp becoming a reality in tobacco-state agriculture FRANKFORT, KY.—After several years of experimentation, the production of industrial hemp will apparently move from a concept to a reality this year in the United States.

The reason? The 2018 federal Farm Bill opened the way by rendering the crop legal to produce for the first time in decades. The only delay now is that the individual states must submit plans to regulate production of the crop in an orderly manner.

A number of farming areas across the country have indicated a desire to pursue hemp. But none have done so more aggressively than Kentucky, where the farmers are known for their high-quality burley production.

In fact, the Kentuckians most interested in hemp are almost uniformly burley growers who are trying to make up for lost tobacco production.

Kentucky is ahead of the game because it has already applied to USDA approval of its program, the first state in the nation to do so.

Commissioner of Agriculture Ryan Quarles announced here on January 22, “Kentucky’s regulatory framework perfectly aligns with the requirements spelled out in the [new] Farm Bill.

60,000 tonnes.

Tanzania earned $312.7 million from tobacco exports in 2016, $287.6 million in 2015 and $315 million in 2014.

ZIMBABWE More farmers this season Zimbabwe’s tobacco marketing season is expected to see an increased number of farmers delivering their crop to the tobacco sales floors, according to a statement from Zimbabwe Farmers’

“Now we are eager to take the next step toward solidifying Kentucky’s position as the epicenter of industrial hemp production and processing in the United States. Industrial hemp gives Kentucky the opportunity to be first in something.”

More than 1,000 Kentucky farmers have applied to participate in the program in 2019. In 2018, farmers in the program grew more than 6,700 acres, more than double the acreage grown in 2017. Other states are seeking USDA approval also, including

Not wasting a minute: Kentucky Commissioner of Agriculture Ryan Quarles (right) delivered his state’s plans to regulate production of industrial hemp to the national Secretary of Agriculture, Sonny Perdue in Washington immediately after industrial hemp was legalized.

Union (ZFU), which reported an estimated 46 percent increase in registered growers this year.

The highest number of growers was registered in the Mashonaland Central Province, with as many as 63,909 farmers from the total 169,328 farmers.

The hectarage for the 2018–19 cropping season (102,795 ha.) also increased as compared to the previous cropping season (104,397 ha.), which recorded a 5.5 percent decrease.

JANUARY/FEBRUARY 2019 TOBACCO INTERNATIONAL

33

CALENDAR OF EVENTS February 17–22, 2019 12th Annual ProCigar Festival La Romana and Santiago de los Caballeros, Dominican Republic. Premium cigar festival.

Contact: ProCigar, Web: procigar.org.

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The authority on the tobacco industry since 1886

84th EDITION

April/May 2018

2019 BUYERS’ GUIDE & GLOBAL DIRECTORY Product Manufacturers

February 18–22, 2019 21st Festival del Habano Havana, Cuba. Contact: Habanos S.A., Web: festivaldelhabano.com, habanos.com.

Exporters & Importers Equipment & Machinery

The Murky Future of Vaping and Cannabis

Supplies & Services Leaf Dealers, Growers & Processors

• HOW FAR WILL THE U.S. BURLEY MARKET FALL? • THE FUTURE OF NICOTINE COULD BE TOBACCO FREE • WHICH WAY ALLIANCE ONE?

April 8–10, 2019 TMA’s 104th Annual Meeting & Conference Marriott Fairview Park. Falls Church, Virginia, USA. Contact: Tobacco Merchants Association, Web: tma.org.

April 30–May 1, 2019 Next Generation Nicotine Delivery USA 2019 Miami, USA. Web: arena-international.com.

June 13 International Symposium on Nicotine Technology (ISoNTech 2019) Marriott Centrum Hotel, Warsaw, Poland.

Web: isontech.info.

June 13–15 6th Global Forum on Nicotine (GFN 2019) Marriott Centrum Hotel, Warsaw, Poland.

Web: gfn.net.co.

AUSTRIA SCRAPS ITS BAN ON SMOKING IN BARS & RESTAURANTS

PLUS:

Associations

TRADE WAR BETWEEN U.S. & CHINA GROWS MORE LIKELY

TOUGH TIMES LIE AHEAD IN THE RUSSIAN TOBACCO MARKET

A NORMALIZING SEASON FOR BRAZILIAN TOBACCO

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ADVERTISER INDEX Airco DIET ................................................................. 17

Hampshire Tobacco Machinery Services ..................... 22

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

Hertz & Selck ............................................................. 27

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

Isatec Ltd. ................................................................. 30

Bobst ......................................................................... C4

Star Agritech International ........................................... 3

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

SWM International ...................................................... 23

Evans MacTavish Agricraft, Inc. .................................. 15

TSAL Ltd. (Tobacco Solutions Asia Limited) ............... 19

Global Laboratory Services, Inc. .................................. C3

U.S. Tobacco Cooperative, Inc. .................................. 31

34 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2019

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