Tobacco International - January/February 2020

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The authority on the tobacco industry since 1886 January/ February 2020

A Year of Transformation for Swedish Match

RUSSIA DECLARES WAR ON TOBACCO ALTERNATIVES

SMOKING SURVIVES IN TURKEY DESPITE OPPOSITION

VERY LOW NICOTINE BRANDS PROPEL 22ND CENTURY

BOMHARD: THE NEW LEADER AT IMPERIAL BRANDS

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JANUARY/FEBRUARY 2020

TI TABLE OF CONTENTS 16

A LOCKWOOD PUBLICATION

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tobaccointernational.com

The authority on the tobacco industry since 1886 January/ February 2020

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A Year of Transformation for Swedish Match

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RUSSIA DECLARES WAR ON TOBACCO ALTERNATIVES

SMOKING SURVIVES IN TURKEY DESPITE OPPOSITION

VERY LOW NICOTINE BRANDS PROPEL 22ND CENTURY

BOMHARD: THE NEW LEADER AT IMPERIAL BRANDS

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ON THE COVER FEATURES 16 Parliament in Russia Declares War on Tobacco Alternatives. Government sees no difference between vapes and cigarettes when it comes to regulation. By Eugene Gerden, TI Russia Correspondent.

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Smoking survives in Turkey.

Despite the opposition of President Erdogan, it is not disappearing.

By Bob Crew, TI London Correspondent

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Very Low Nicotine Brands Propel Developments at 22nd Century Group.

Turning point: Moonlight and Moonlight Menthol brand cigarettes have been pronounced “appropriate” for the protection of the public health by FDA.

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A year of Transformation for Swedish Match. Its vision: A world without cigarettes.

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There’s a New Leader at Imperial Brands. Stefan Bomhard is a brand-building executive from the field of car retailing.

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The Challenges Facing American Tobacco Growers. The U.S. is a shrinking player in an increasingly globalized industry, one grower leader said in Raleigh, and across the globe, there is too much tobacco being grown.

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2019 wasn’t just a year of change for Swedish Match—it was a year of transformation, says CEO Lars Dahlgren.

Learn more about the company’s vision on page 26. Photo courtesy Swedish Match.

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DEPARTMENTS 8

Editorial

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.

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TI GUEST OPINION

PUBLISHER & PRESIDENT

Robert M. Lockwood EDITOR-IN-CHIEF

When the Disinformation Comes from the Other Side “You should develop a safer product!”

For decades, that is what governments and the public health community have told the tobacco industry. PMI has invested billions of dollars in science and technology to achieve that precise objective.

[But] a campaign coordinated by American special interest groups, all of whom are seemingly funded by the same source—Bloomberg Philanthropies— are dedicated to just one mission. Under the guise of promoting public health, they are working to rob adults who smoke of their right to choose scientifically substantiated better alternatives to continued smoking.

We have a question for them: Why are they using an elaborate network of organizations to deceive adults who smoke, elected officials, and the public health community? We can only conclude that they are pursuing a disastrous prohibition-only crusade.

We urge these groups to: • stop ignoring the rights of hundreds of millions of adults who smoke and who deserve better alternatives; • stop ignoring science and evidence that doesn’t fit with their dogma; and • start having a real conversation.

If people who smoke are denied accurate information—or worse yet, are deceived—about less harmful alternatives, the vast majority will simply continue to smoke cigarettes.

We are moving as fast as we can, but more importantly adults who smoke are voting with their feet and switching as fast as they can.

We have been clear about our objective to end cigarette sales. This is the future of our company; for PMI there is no turning back. We have the determination to make it work.

The proof is in the numbers: Smoke-free products are now almost a fifth of our business—up from zero five years ago.

Since 2008, we have invested $7.2 billion to develop and scientifically substantiate smoke-free alternatives.

Nearly 10 million adults have completely stopped smoking cigarettes and switched to our electrically heated tobacco system, which is now available in 52 markets.

Whilst cessation is clearly the best option, our market research across many countries indicates that 80% of adults who smoke want better alternatives.

In 2019, 71 percent of our commercial spend was dedicated to smoke-free products.

These facts are the real story.

The question for our critics is this: do they want to make our transformation away from cigarettes slower or faster? Do they want it to make it more difficult for adults who would otherwise continue smoking to choose better products, or less difficult?

To set the record straight, we have addressed all of the allegations made against us by this global campaign on our website PMI.com. We invite everyone to learn the facts, study our science and arrive at their own conclusions. We have nothing to hide.

Christopher Bickers PRODUCTION COORDINATOR

Melinda Ayala 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. 111 EMAIL: robert@lockwoodpublications.com SPECIAL SALES REPRESENTATIVE

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

TOBACCO INTERNATIONAL MAGAZINE Lockwood Trade Journal Co., Inc. 3743 Crescent Street, 2nd Floor Long Island City, NY 11101, USA TEL: +1 212-391-2060 SUBSCRIPTIONS E-MAIL:

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—Dr. Moira Gilchrist, Vice President, Strategic & Scientific Communication, Philip Morris International Volume 20, No. 1 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.

8 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

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TI DIGEST The headquarters of Royal Agio Cigars group in Duizel, The Netherlands.

THE NETHERLANDS Scandinavian Tobacco Group acquires Royal Agio Cigars duizel , the nether l a nds — Scandinavian Tobacco Group has acquired from Highlands Beheer B.V. all the shares of Agio Beheer B.V. the holding company of the Royal Agio Cigars group.

Royal Agio is a European cigar company with a strong cigar portfolio including key brands such as Mehari´s, Panter and Balmoral.

The company is based in Duizel, The Netherlands, and has approximately 3,200 full-time employees. Royal Agio’s reported annual net sales for 2018 were EUR 133 million with an EBITDA of EUR 18 million.

Agio has had a factory in Sri Lanka since 1985. The more than 1,500 people who work here process the tobacco that will be used as binder and wrapper leaves. The bales of raw tobacco are delivered to our factory in Sri Lanka straight from plantations in countries such as Indonesia, Brazil and Ecuador.

Agio also operates a hand made cigar factory in San Pedro de Macoris, Dominican Republic, and its flagship machine-made cigar factory and packaging facility in Westerlo, Belgium.

The company’s Duizel headquarters also houses the company’s warehouse and distribution facility.

Royal Agio will provide Scandinavian Tobacco Group access to a strong product portfolio and important market positions in key European machine-made cigar markets. The acquisition secures leading positions in France, Belgium and The Netherlands and significantly improves the position in other key cigar markets such as Spain and Italy.

CEO of Scandinav ian Tobacco Group, Niels Frederiksen said the acquisition of Royal Agio significantly strengthens STG’s position in several key machine-made cigar markets in Europe and enables delivery of an even more attractive range of cigars of the highest standards to its consumers.

“The acquisition leaves Scandinavian Tobacco Group as a bigger, more competitive and more profitable company better suited to pursue growth and create value for our shareholders.”

Royal Agio is a family-owned business founded in 1904. Royal Agio’s products are sold in about 90 countries with the majority of net sales generated in The Netherlands, Belgium, France, Germany, Italy and Spain.

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UNITED STATES Is Altria’s Juul Investment the Worst Deal of All Time? richmond, va—Altria took one bad review after another from critics over the winter as its investment in Juul Labs became increasingly less appealing.

In a harsh but really not atypical assessment, the online publication O’Dwyer’s excoriated the transaction as being perhaps the “worst deal of all time” with the likelihood of getting worse.

“The number of lawsuits have jumped by 80 percent since October,” wrote O’Dwyer analyst Kevin McCauley, and he noted that there could be further adverse developments in pending or future cases.

Altria’s original investment of $12.8 billion for a 35 percent stake in Juul Labs had already been written down by $4.5 billion in October, and another $4.1 billion in mid January.

“It said the latest charge is primarily due to the increased number of legal cases pending against Juul and the expectation is that the number of legal cases will continue to increase,” wrote McCauley. “The rapidly shrinking value of Juul is now pegged at $4.2B.”

Donation Platform to Support an Outdoor Protection Agency richmond, va—General Snus, a smokeless tobacco brand from Swedish Match, and Leave No Trace, one of the world’s premier outdoor protection agencies, have partnered to launch the Trailkeepers Project.

The Project will assist in protecting the great outdoors by raising funds for environmental initiatives, asking consumers to take a conservation pledge and encouraging people to get out and explore the natural world.

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TI DIGEST

INDUSTRY OPINION —JACK BOWLES, CEO BAT

A Properly Regulated Vapor Category Continues to Provide a Credible Alternative to Smoking British American Tobacco (BAT) has welcomed the U.S. FDA’s recent acknowledgment that a properly regulated vapor category continues to provide a credible alternative to smoking, while also highlighting the important issue of preventing the access and appeal of vapor products to youth. Following a significant period of disruption and uncertainty, this regulatory clarity is a welcome step towards returning the U.S. vapor market to stability.

British American Tobacco Chief Executive Officer Jack Bowles noted, “Yesterday’s announcement takes us a step closer to a predictable regulatory environment in a key marketplace. But focus must now shift to enforcement to ensure vapor market regulations are effective.

“We have long said it is not the marketing of these products per se that is the concern, it is the irresponsible marketing of them that should be robustly addressed. Smart regulatory frameworks partnered with responsible marketing and appropriate enforcement will ensure the sustainability of adult consumer choice across all categories.”

The guidance the FDA has provided, together with the previously announced requirement to submit PMTAs by May 2020 for all products, is a positive step and will help ensure consumers have access to appropriately regulated, quality-assured products that do not appeal to or are accessible to youth.

The guidance is clear that flavors can return to the market place once they have been cleared through the PMTA process.

“Millions of adult tobacco consumers are looking for an alternative to cigarettes and it’s important to remember that properly regulated flavors can play an important role in the choice of adult tobacco consumers to transition to vapor products as an alternative to cigarettes.”

“Our U.S. subsidiary, RAI Group, has already submitted one brand PMTA for VUSE Solo and is well positioned to submit applications for the remaining VUSE portfolio ahead of the deadline of May 2020. We are confident that, as required by the PMTA process, all VUSE products will be shown to be appropriate for the protection of public health.”

BAT has long argued for sustainable regulatory frameworks for its new category products. BAT believes in providing adult consumers with vapor systems that are hard to adulterate; providing new category products which are supported by world class science and product stewardship; offering a range of flavors which ensure adult consumer satisfaction whilst not appealing to youth; and marketing freedoms to drive category adoption among adult consumers.

“We will continue to work with the FDA throughout the implementation of this new regulatory framework to make sure consumers have access to quality-assured products whilst doing our utmost to ensure that vaping remains positioned as a credible option for smokers looking for an alternative to tobacco,” said Bowles.

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“Swedish Match has remained committed to operating with sustainability as a key pillar of our business throughout its history,” said Jason Walker, Assistant Brand Manager, Swedish Match. “We’re thrilled to take our contributions toward a sustainable future one step further with the introduction of the Trailkeepers Project.

“Through this initiative, General will donate over $50,000 to Leave No Trace to support wildlife, protect our environment and promote conservation efforts. We’re proud to enter 2020 in strong partnership with such an upstanding organization.”

Now through March 2020, consumers can participate in the Trailkeepers Project by visiting the General Snus website to learn more about three Leave No Trace initiatives eligible for receiving the brand’s donation: • Respect Wildlife, • Minimize Wildfires or • Pack It In, Pack It Out programs.

Each of these programs address a variety of environmental challenges. Participants have the opportunity to vote daily for the cause they feel most passionate about during the promotional period.

Beginning in April, General plans to further elevate the Trailkeepers Project and the brand’s contributions to the environment by asking consumers to commit to a conservation protection pledge on the General Snus website.

Consumers will be encouraged to share that pledge on Facebook. General will donate $5 to Leave No Trace for each pledge commitment, and another $5 to the organization for each Facebook share, up to $100,000. Results achieved through the Trailkeepers Project will be revealed in October 2020.

The Trailkeepers Project will be supported by additional marketing materials, including special packaging, point of sale, direct mail, email and more. All collateral will direct consumers to the General Snus website where they can vote to fund their favorite environmental cause.

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TI DIGEST

Trump’s Solution to Vaping Controversy: Fire HHS Secretary Azar! washington—The debate on whether some or all vaping flavors should be banned in the U.S. took an absurd turn late in November in a meeting at the White House called by President Donald Trump to trade ideas on the issue.

Participants included public-health advocates, vaping company executives and representatives of almost every segment of the economy that has a stake in vaping.

A number of solutions were proposed, and one participant noted that a radical conservative organization had earlier demanded that the secretary of the federal department of health and human services Alex Azar be fired for a lack of anti-vaping zeal.

“Fire Azar? Best idea I’ve heard all day,” the president said, according to Bloomberg News and other news outlets.

He soon made it clear that he was only joking, but the comment shows how intractable this issue has become. Azar attracted the wrath of some organizations because he favors banning all vape flavors except “tobacco.” This was not much different than the initiative the President had been talking up in recent weeks.

But Trump’s administration has wavered on such a proposal and now seems to claim neutrality on the issue.

There are several parties to the debate that think vaping should be banned together.

Trump ruled out an outright ban. “If you don’t give it [nicotine tobacco] to them, it’s going to come here illegally,” he said.

But Trump has since apparently decided that there is no satisfactory solution to the problem, at least not satisfactory to him. In a call out of the White House, according to several news

14 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

US Secretary of Health and Human Services Alex Azar, shown here noticeably unconcerned about a recent “threat” to his job security.

organizations, Trump said to Azar, “I should never have done that f---ing vaping thing.”

No agreement on vaping agreeable to all or even most parties involved had been proposed by press time.

Photos: Smile-Expo

RUSSIA

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Parliament Declares War on Tobacco Alternatives Bottom line: There’s no difference between vapes and cigarettes in the government’s desires to reduce all tobacco product consumption. By Eugene Gerden, TI Russia Correspondent he Russian Parliament (State Duma) has taken aggressive steps against tobacco alternatives in Russia through the adoption of a new draft bill that equates e-cigarettes and other similar products with traditional tobacco products. In recent years the demand for traditional tobacco products in Russia has significantly declined. Instead, electronic analogues and other alternatives have experienced actively growing sales in the Russian market for the last 14 to 16 months.

According to recent statistics published by Russian media reports, Russian sales of traditional cigarettes has declined by 5 percent since the beginning of the current year, compared to January-November 2018.

In contrast, sales of sticks for electronic tobacco heating systems grew by almost 4.5 times compared to 2018,

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with the biggest demand being observed from Russian citizens living in the major cities of the country.

Analysts believe one of the major reasons for this has been “aggressive advertising” of electronic cigarettes and devices in the Russian media and TV. In the meantime, the growing popularity of tobacco alternatives in Russia has sparked serious concerns from the Russian federal government and the national Parliament (State Duma).

So far, the Duma has approved a package of legislative acts to prevent a further raise of popularity of e-cigarettes and their analogues among the Russian population.

Perhaps the most important bill for the industry was approved on December 11 and equated electronic cigarettes, smoking mixtures and vapes with traditional tobacco products.

While sales of traditional cigarettes have been on the decline in Russia, the vape market continues to grow, as evidenced by the popularity of consumer events such as VapeExpo Russia 2019.

JANUARY/FEBRUARY 2020 TOBACCO INTERNATIONAL

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RUSSIA

“The crucial point of the new legislative act is that it creates conditions for the reduction of consumption of both traditional tobacco products and electronic cigarettes.”

—Oleg Salagai, Deputy Minister of Health of Russia The new bill legally defines the term “smoking of non-tobacco smoking products” and applies to them the same restrictions, as for traditional cigarettes.

In fact, the adoption of the bill became part of a major anti-smoking state Concept, which was approved by the Russian government at the end of November, with the aim to reduce the number of smoking people in the country within the next several years.

Commenting on the adoption of the new strategy, Oleg Salagai, Deputy Minister of Health of Russia said the crucial point of the new legislative act is that it creates conditions for the reduction of consumption of both traditional tobacco products and electronic cigarettes.

Manufacturer Response In the meantime, global tobacco majors operating in Russia have already criticized the latest attacks of the Russian government on the alternative tobacco products.

Sergey Slipchenko, Vice President for Corporate Affairs of Philip Morris International, said that after four years of discussions between producers and the government about the role of alternative nicotine-containing products for the reduction of smoking in the country, the positions of producers have not been properly taken into account.

“Equating these products with traditional tobacco products puts an end to their further study and unlocking potential as a less harmful alternative for Russian customers,” Slipchenko said.

“This in turn poses a serious threat for the achieving the targets stated in the concept for the reduction of the number

of smoking people in Russia within the next several years.”

The same position is shared by Alexander Alexandrov, a Senior Manager for Regulatory Affairs and Government Relations of Imperial Tobacco in Russia and Central Asia.

“We are surprised that the products which are used in many countries to reduce tobacco consumption have been

According to producers, only the balanced and constructive approach to nicotine-containing products with lower risks could help achieve the goals of the concept.

Benefit for counterfeit?

Producers also believe the adoption of the latest state measures will also contribute to a further growth of counterfeit tobacco products in the Russian market. This year the share of such tobacco products continues to grow in the local market.

According to analysts’ predictions, by the end of the current year, their share in the overall structure of the market may reach almost 16 percent, almost 8 percent higher than in 2018. High popularity of Imperial Brands PLC subsidiary Fontem Ventures launched its myblu pod-based vaping device to consumers in Russia in 2018.

declared a new enemy instead of considering them as an additional tool to achieve the desired result.”

According to Alexandrov, the reduction of the number of smokers among the adult population by 2035 to 21 percent will be quite difficult, given that almost the entire arsenal of prohibitive measures has already been put into practice by the state.

such products is primarily explained by their price, which is significantly than lower those for traditional cigarettes and tobacco products. Nielsen analysts estimate the level of budget losses due to tobacco counterfeit in the amount of up to RUB 100 billion (US$1.5 billion).

The average cost of a pack is RUB 115 (US$1.79), while in the case of stick, it is RUB 135.

“We are surprised that products which are used in many countries to reduce tobacco consumption have been declared a new enemy instead of considering them as an additional tool to achieve the desired result.”

—Alexander Alexandrov, Imperial Tobacco

18 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

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TURKEY

Photo: Bigstock / palinchak

Turkish President Recep Tayyip during his official visit to Ukraine in October, 2017.

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Turks Still Smoke Despite Opposition President Erdogan’s government opposes tobacco use, but it is not disappearing. By Bob Crew, Tobacco International London Correspondent t has been observed that the president of Turkey has an almost miraculous (and perhaps mythical) ability to persuade people to quit smoking. It was claimed by Turkish media that Recep Tayyip Erdogan once convinced the Bulgarian foreign minister to give up tobacco. He has lead efforts to ban smoking in all indoor spaces, including restaurants, bars and cafes, and later, in stadiums, mosque courtyards and hospitals.

But in spite of all these anti-smoking regulations in that country by the Erdogan government, it is clear that a lot of Turks are still smoking a lot of tobacco products.

The Turkish Statistics Institution (TSI) tells us that “52.8 percent never smoke and have never done so.” But this leaves a very sizeable market of some 48 percent of Turks for homegrown or imported cigarettes. “42.4 percent” of that group “do not plan to quit,” so there is, evidently, a long-term rather than short-term market here.

Since “94.5 percent” of those that do smoke report that they have “noticed the health warnings on cigarette packages,” we may assume that this is also a fearless and cheerfully fatalistic market of smokers who don’t much care about lung cancer and all the other well-publicized smoking-related diseases and dangers. This will appear as a sizeable long-term market to many producing countries, especially tobacco companies from the United States, Britain, Europe and Japan. But they are taking on local Turkish players who have the advantage of price on their

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side, since they are cheaper than the imported brands.

The proverbial smoking Turk What does smoking like a Turk mean and where does this saying come from?

In my experience in mainland Turkey and also the offshore island of Turkish Northern Cyprus, ‘smoking like a Turk’ means chain-smoking like a chimney, night and day, right round the clock. In Turkey, one cannot fail to see millions of Turks men and women, young and old, all smoking like the proverbial chimneys!

pipes (with substances other than—or additional to—tobacco!) which is really smoking like a Turk. So with all this and more smoking going on among some 48 percent per cent of the population with no plans to quit any time soon, it seems clear that smoking is still widely in evidence in Turkey and Turkish North Cyprus, where tobacco products are a lot cheaper than elsewhere because they have not been taxed out of existence as they generally have in Britain, the US and Europe.

For these reasons, this image of smoking in Turkey is one that has not gone away and does not look like it is going away in the near or perhaps even distant future, even though the Erdogan government philosophy opposes smoking and is cracking down.

But for the half (more or less) of the Turkish population that is avidly smoking, it would be, we might say,

This will appear as a sizeable long-term market to many producing countries, especially tobacco companies from the United States, Britain, Europe and Japan. But they are taking on local Turkish players who have the advantage of price on their side…

They smoke in high streets and side streets, back alleys and in all sorts of other public spaces. But not in restaurants, bars, hotels, clubs, supermarkets or shopping malls, or on public transport, in each and all of which places smoking is strictly banned. Or on a number of tourist beaches or in swimming pools either that are frequented by foreign tourists (but not all beaches and swimming pools where one does see Turks smoking and flicking their ash all over the place!).

And they smoke with a passion all day long and night long.

They also smoke from their traditional hookah hubble-bubble water

an unpleasant Cold Turkey for them to have to quit. Unless or until that occurs, one can say for sure that Turkey is still ‘smoking like a Turk’ and living up to its image still.

A Brief History of Turkish Tobacco By all accounts, Turkish (also called Balkan or Oriental tobacco) is a highly aromatic, small-leafed variety of tobacco which is sun-cured, in that extremely hot part of the world. That area corresponds more or less to modern Greece, Bulgaria, the Republic of Macedonia, and Turkey, where it is chiefly though not entirely grown on the Black Sea

JANUARY/FEBRUARY 2020 TOBACCO INTERNATIONAL

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Photo: Bigstock / hmarq

TURKEY ground that many if not most of the early brands of Turkish cigarettes, pipe tobacco and cigars were manufactured, a goodly number of which remain in production to this day.

Turkish tobacco is sun-cured, and this is what is supposed to make it much more aromatic and tasty, and more acidic than air or smoke-cured tobacco, and arguably more suitable for cigarette production (I am not a smoker and have never smoked it, but this is what I hear).

Traditionally Turkish tobacco has had the reputation of being a much milder flavor than other tobaccos, containing less nicotine and fewer carcinogens than other varieties, but there is not, as yet, any World Health Organization confirmation of this. If there is, do let me know. I am all ears.

A tobacco field in Vezirkoeprue, Turkey. Turkish leaf, due to its small size, is the most laborintensive of all tobacco types to harvest and process.

coast. All the areas now growing Oriental were at one time part of the Ottoman (or Turkish) Empire. There is also some growth of Turkish in Egypt, South Africa and elsewhere.

The name “Turkish” (Turk means ‘strong man’) refers to the Ottoman Empire, which from the collapse of the Roman Empire in Ancient Greek Byzantium eventually ruled all before it including the historic tobacco-production areas of that part of the world, until

the late 19th/early 20th century, when the empire came tumbling down at the hands of the Allies at the end of World War Two (Turkey, having backed the wrong German side not once, but twice!), and notably at the hands of the British and French naval fleets, as well as the British Army in Arabia that had been colonized by the Turks until the Brits turned up on the scene to upset their apple cart.

It is against this Ottoman back-

22 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

When the Camels Were Coming Whilst cigarettes containing only Turkish tobacco—like Murad, Helmar, Balkan Sobranie and/or those supplied by urban tobacconists like Fribourg & Treyer, or by Sullivan Powell in London—are long gone, other Turkish-containing blends still persist.

The Turkish leaf industry owes much of its current markets to a brand developed near t he beginning of World War I. In the years just prior to the war, Richard Joshua Reynolds and his chemists were looking for a new recipe for blending cigarettes. The cigarette brands that were most popular at the time were those whose blends contained mostly or entirely Oriental.

Other popular brands were made up entirely of flue-cured Virginia, and still others were a mix of Oriental and flue-cured. Reynolds and his assistants decided to take the Oriental/Virginia blend and modify it to their needs.

They settled on a blend that contained about half flue-cured and about 10 percent Oriental, which they needed

Outlook for Turkish Tobacco In January of 2018, the organizers of the Tobacco Workers Conference held that year in Myrtle Beach, S.C., devoted a session of its program to a report on Turkish leaf’s prospects in the world market.

Turkish tobacco, it was noted, is characterized by small plants, very small cured leaf compared to most other types and a relatively low need for nutrients. It is not topped, so it has a much larger number of leaves than most other types.

Some Turkish is still transplanted by hand, a very laborious process.

Most is mechanically transplanted, using setters. The plant spacing is five to seven centimeters.

Plant populations are much higher than for flue-cured or burley.

Harvest is done mainly by “priming,” according to material provided by Universal Leaf. Individual leaves are removed

cinogens than other varieties.

There is still a place for Oriental in the world market. Oriental brings aroma and taste to a cigarette, and it balances the sharpness in cigarette smoke. Oriental is now used primarily in American-blend cigarettes and in pipe tobacco, though at one time cigarettes that were all-Oriental cigarettes were popular.

There is still a place for Oriental in the world market. Oriental brings aroma and taste to a cigarette, and it balances the sharpness in cigarette smoke. Oriental is now used primarily in American-blend cigarettes and in pipe tobacco

Photo: Bigstock / can yalcin

to include for its spicy flavor and aromatic character to a cigarette.

But it was expensive since it had to be imported from overseas. So Reynolds turned to domestic burley, which cost less and was easily available and brought with it an outstanding capacity to absorb flavoring.

That characteristic made it possible for Reynolds to use burley that was flavored—or “cased” as it was called then—to provide substitute flavor elements for those he lost when he cut back on Oriental.

Reynolds named his new brand Camel, evoking a Mid East scenario. and on its pack he said it was made with “Turkish and domestic tobaccos.” The rest is history.

It is said that Turkish tobacco plants—which usually have a greater number of leaves than other types which are smaller sized—grow this way because of the differences in climate, soil, cultivation, and also treatment methods, of course, and that these plants have also—of course again— stood the long test of time.

The Ottoman people developed their own methods of growing tobacco, farming and using their own tobacco flavors and products in the long reach of time. These Ottomans also developed different methods of consuming tobacco, including their famous hubble-bubble hookah.

A local woman gathering tobacco leaves for drying in Adiyaman, Turkey.

from the growing plant as they mature and ripen in the field, starting with the lowest leaves and moving up the stalk over a five- to nine-week period. Freshly harvested leaves are normally sewn onto strings or sticks and cured in sundrenched frames, often with clear plastic coverings to increase heat and reduce water damage from dews or rainfall. It is harvested leaf by leaf, and it is cured on strings in the sun. It is very important that the tobacco contain no tangled leaf.

Turkish tobacco has a much milder flavor and contains less nicotine and fewer car-

High price a barrier Now, as 100 years ago, the cost of Turkish is high relative to other types. That is becoming a problem, since there is a limit to what the market will pay.

One reason for the high cost of Turkish is that it is the most labor-intensive of all tobacco types, and for the future, mechanization is seriously needed.

One bright note: Some Turkish is being used in the IQOS brand of heatnot-burn products. There might be possibilities for increased use of Turkish leaf in reduced risk products.

JANUARY/FEBRUARY 2020 TOBACCO INTERNATIONAL

23

CIGARETTE MANUFACTURER

22nd Century Group:

Very Low Nicotine Brands Propel Developments Moonlight and Moonlight Menthol get thumbs up from FDA. From company reports small company with big potential in the era of tobacco harm reduction generated a lot of news in late December and January.

By far the most portentous development was the U.S. Food and Drug Administration (FDA)’s determination that the marketing of 22nd Century Group’s Moonlight and Moonlight Menthol brand cigarettes are “appropriate” for the protection of the public health.

Consequently, the FDA has issued marketing orders permitting the sale of these products in the U.S. This FDA authorization follows the FDA’s review of the Premarket Tobacco Product Applications (PMTA) previously submitted by 22nd Century.

The products contain roughly 95 percent less nicotine than standard cigarettes, according to the FDA. “FDA authorization of 22nd Century’s Moonlight and Moonlight Menthol brands is “a major milestone in our efforts to drive meaningful change in the tobacco industry,” said Michael Zercher, president and chief operating officer of 22nd Century Group. “22nd Century

A

joins just two other companies in having marketing orders granted under the FDA’s PMTA regulatory pathway.

“Those other companies—Philip Morris International and Swedish Match—are very large, global tobacco companies with significant financial, scientific and regulatory affairs resources. So we are extremely proud of the world-class work done by our regulatory team to successfully secure this marketing authorization from the FDA.”

The company looks forward to continuing to work with the FDA regarding its separate Modified Risk Tobacco Product application and to supporting the FDA’s continued work in implementing a reduced nicotine product standard to require all cigarettes sold in the U.S. to be made minimally addictive or non-addictive, said James W. Cornell, former chairman of the board of directors of 22nd Century Group.

“We remain focused on our core missions of reducing the harm caused by smoking and building a world-class hemp/cannabis company.”

Management Changes, Some Unexpected In mid December, management changes to assist in these efforts were announced.

Left: Michael Zercher. President, 22nd Century Group. Right: Cliff Fleet, former CEO.

24 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

“Over the past few months we have made rapid and significant progress in strengthening 22nd Century Group as we execute against our two growth strategies,” commented James W. Cornell, director & and until recently chairman of the board. “We are committed to creating meaningful change in the tobacco industry by reducing the harm caused by smoking through the commercialization of our proprietary VLNC tobacco and its related intellectual property, and we are growing a profitable, legal hemp/cannabis business in this fast-growing, emerging space.”

But first the Company will have to begin a search for a new chief executive officer…for the second time in five months! Cliff Fleet resigned from, that post at the end of the year to become the CEO. of the Colonial Williamsburg (Va.) Fleet has a well documented interest in historical work. He has in recent years served as president of the Jamestown-Yorktown Foundation, Inc., and is a member of the Board of Trustees for the foundation for William & Mary College, which is also in Williamsburg.

He will continue to remain on the Company’s Board.

His predecessor Henry Sicignano III had resigned quite unexpectedly as chief executive last July 26 citing “personal reasons.” He had been the chief executive since March 2015 and president since January 2011.

In the meantime, Michael Zercher has been appointed to serve as the Company’s President.

In other developments: • FDA’s Tobacco Products Scientific Advisory Committee (TPSAC) was scheduled to conduct a public hearing on February 14 regarding the company’s Modified Risk Tobacco Product (MRTP) application for its VLNC products.

Top: A worker on the floor at NASCO Tobacco Products helps make cigarettes for 22nd Century. Above: The factory of NASCO Tobacco Products, a subsidiary of 22nd Century Group, in Mocksville, N.C., near Winston-Salem. NASCO operates as a contract manufacturer of traditional cigarettes and filtered cigars, which has produced much of 22nd Century’s annual revenue to date. Right: Barry Saintsing, Master Tobacconist.

• Roger O’Brien was appointed as a new member of the group’s board of directors, • Nora Sullivan was appointed as the new chairman of the board replacing Cornell.

“We welcome Roger to 22nd Century’s Board of Directors and congratulate Nora on her appointment as chairman,” said Zercher. “Roger’s extensive experience in strategy and management con-

sulting and Nora’s deep experience in capital markets, private equity, and matters of public company governance, including as a long-time member of 22nd Century’s board, will be of tremendous value to the company as we pursue our two strategic growth objectives in tobacco harm reduction and the emerging hemp/cannabis space.

JANUARY/FEBRUARY 2020 TOBACCO INTERNATIONAL

25

MANUFACTURER UPDATES The nicotine pouch ZYN has given Swedish Match a boost. In addition, the company has purchased several smoke-free companies recently: V2 Tobacco (manufacturer of Thunder), Gotlandssnus (manufacturer of Qvitt and Jakobsson’s) and Oliver Twist (below).

Its vision: A world without cigarettes.

From company documents n many respects, 2019 will stand out as a transformational year for Swedish Match, said its CEO Lars Dahlgren—a year of not only record sales and operating profit from product segments, but also further alignment with its vision. “[Swedish Match] established itself as the clear market leader for nicotine pouches in the United States and began offering nicotine pouches to markets outside of our core Scandinavian and U.S. markets,” said Dahlgren in a report on late 2019.

Twenty years ago, he said, Swedish Match embarked on a journey toward a world without cigarettes by divesting its cigarette business and choosing to expand its footprint with other products over a broad geography.

Later, the company divested its pipe tobacco businesses as well as its U.S. premium and European cigar businesses, and instead concentrated its focus on smokefree products.

I

“Throughout this journey, Swedish Match has dedicated its efforts through research and development, product innovation, regulatory engagement and market insight in pursuit of our vision benefiting our shareholders as well as society as a whole,” he said. “Much like our vision, Swedish Match’s strategy for sustainability is a long-term journey. Our approach to sustainability is not to attempt to cater to broadly defined, and at times, ideological demands of others.”

Rather, the company’s compass is set strategically on specific areas where it believes it has the potential to directly or indirectly influence meaningful outcomes or where the issue has the potential to impact the long-term viability of the company’s businesses.

“Beyond the many successful sustainability initiatives implemented by our businesses during the year, we were particularly pleased to see that

26 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

Photos: Swedish Match

A year of Transformation for Swedish Match

our greenhouse gas emission reduction targets were approved by the Science Based Targets initiative in March of 2019,” Dahlgren said. “The trend shift in global consumption of nicotine products away from traditional combustible cigarettes is accelerating.

“As nicotine markets evolve, producers, governments and regulators must work to achieve the societal benefits of harm reduction grounded in science while limiting unintended negative consequences like youth adoption.”

The global regulatory regimes are dynamic and divergent, and 2019 was a uniquely turbulent year, which gave an ironic example of the regulatory divergence that frequently occurs.

“In a period of 10 months, the European Court of Justice ruled that Swedish snus will continue to be excluded from the EU internal market. “ [At approximately the same time] Swedish Match became the first company to be granted Modified Risk Tobacco Product (MRTP) designations by the U.S. FDA for our General snus offerings.

“We firmly believe that the best and most proven alternatives to cigarettes lie in smokefree nicotine products that do not require inhalation, and we will continue to advocate for rational and science-based regulatory frameworks

that will permit Swedish Match to responsibly market our products to adult consumers as a safer alternative to combustible cigarettes.”

Over the past several years, Swedish Match has invested in its long-term strength and geographical reach.

“Our ZYN factory expansion projects in the U.S. have progressed very well, and following the success of our 2019 national roll-out of ZYN, we have once again taken a decision to further expand our manufacturing capacity in support of future growth,” the statement said. “The opportunity for ZYN extends beyond the U.S. and Sweden/ Norway, and ZYN is now available on a limited scale in a number of European countries, and markets as far away from Stockholm as New Zealand.”

Swedish Match has also worked to build from recent acquisitions of V2 Tobacco, Oliver Twist and Gotlandssnus—[all] smokefree tobacco companies that complement the product portfolio and provide opportunities for a more f lexible and adaptive portfolio under changing market and regulatory conditions.

“The Group’s outstanding financial performance in 2019 further reflects our commitment to our vision as the snus and moist snuff product segment accounted for essentially all of our growth in sales and operating profit from product segments in local currencies,” the statement said. “In Scandinavia, cigarette smoking continued to decline and market growth for smokefree alternatives was robust during the year.”

But t he dy na m ic s w it h i n t he smokefree markets have changed as nicotine pouches became more widely accepted in both Sweden and Norway.

“In Norway, market volumes for conventional snus declined as consumers rapidly migrated to nicotine pouches,” said Swedish Match. “In Sweden, market grow th accelerated during

BAT Recognized for Sustainability British American Tobacco (BAT) has been named as one of the most sustainable companies in the world as part of the 2019 SEAL Business Sustainability Awards, which celebrate leadership, transparency, and commitment to sustainable business practices.

BAT has been awarded the SEAL Organizational Impact Award, which recognizes overall corporate sustainability performance and represents the 50 most sustainable companies globally.

Winners were selected by combining and ranking the aggregated results of two rigorous, world-class sustainability assessments—the recently-released 2019 CDP A-List and the SAM Corporate Sustainability Assessment.

Matt Harney, SEAL Awards’ Founder, adds, “Companies, CEOs and corporate boards have a simple but not easy choice before them: whether or not to exhibit real leadership by investing in sustainable business practices.”

Sustainability leaders like SEAL Award recipients can secure lasting legacies for their grandchildren and corporate stakeholders alike, Harney said.

“ESG leaders will have reputations and balance sheets that survive the climate crisis.”

The mission at SEAL is to rigorously assess and then celebrate extraordinary sustainability leadership. “We are excited to present this elite and impactful 2019 award winner group.”

Simon Cleverly, Group Head of Corporate Affairs at BAT, said, “Our approach to sustainability is at the heart of our plans to build a long-term sustainable business and we have a clear purpose to provide consumers with a range of potentially less harmful products.

“We are also clear that our long-term sustainability will rely on successful delivery against all other environmental, social and governance measures.”

BAT is “delighted” that its integrated approach to sustainability, which drives value for consumers, employees, shareholders and wider society, has been recognized by inclusion on a prestigious list of global companies, Cleverly said.

2019, driven by nicotine pouches, which generally are priced higher than snus offerings, and by premium snus brands which are offered at somewhat lower price points than the traditional range of premium products.”

Volume growth was slower than the overall market growth for the combined snus and nicotine pouch categories in these markets.

“We remain committed to actively

competing in the attractive growing segments while balancing profit growth,” the statement said. “Swedish Match’s market share is particularly strong within the traditional range of premium snus products, and structural declines within this segment contributed to the market share declines for our total portfolio. ”As we enter 2020, we will continue making strides toward our vision of a world without cigarettes.”

JANUARY/FEBRUARY 2020 TOBACCO INTERNATIONAL

27

IMPERIAL BRANDS

A New Leader at Imperial Brands Stefan Bomhard is a brand-building executive. From company sources tefan Bomhard has been named to the Board of directors of Imperial Brands as Chief Executive Officer at an undetermined date in the future.

Bomhard has been Chief Executive at Inchcape plc for around five years.

Inchcape plc is a global distribution and retail leader in the premium and luxury automotive sectors.

Thérèse Esperdy, Chair of the Board said: “After a thorough search process, which attracted strong, high-caliber interest, the Board is delighted to appoint Bomhard as Chief Executive of Imperial Brands. Bomhard has significant experience across multiple consumer sectors and within large multinational organizations, particularly in brand building and consumer-led sales and marketing.

“He has demonstrated strong strategic and operational leadership and has developed a track record of delivering successful transformational change during his tenure at Inchcape. Bomhard takes on the Chief Executive role at a significant point in Imperial’s development and the Board is confident that his experience and expertise will drive the business forward.”

Bomhard’s initial priorities will be to strengthen performance and enhance shareholder value, she said.

S

A More Sustainable Business Bomhard said he was “delighted” to be joining Imperial as it’s next chief executive. “I believe the business has a great future, and I’m looking forward to working with the Group’s employees to maximize the opportunities that lie ahead and build a stronger, more sustainable business.”

Bomhard was appointed Chief Ex-

ecutive of Inchcape plc in 2015. Before joining Inchcape, Bomhard was president of Bacardi Limited’s European region and was also responsible for Bacardi’s Global commercial organization and Global Travel Retail.

Bomhard has a PhD in marketing and has accrued significant experience in the consumer and retail sectors during his career. Earlier, he served as Chief Commercial Officer of Cadbury plc after being Chief Operating Officer of Unilever Food Solutions Europe. This followed senior management and sales and marketing roles at Diageo (Burger King) and Procter & Gamble. Bomhard is also a Non-executive Director on the Board of Compass Group PLC. Further Changes Alison Cooper stepped down as Chief Executive and from the Board but stayed on until a suitable successor was found.

Imperial also announced that Matthew Phillips has stepped down as Chief Development Officer.

Dominic Brisby currently Divisional Director, Americas, Africa, Asia and Australasia, and Joerg Biebernick, Divisional Director, Europe, will assume the roles of Joint Interim Chief Executive Officers, reporting directly to Thérèse Esperdy, Non-Executive Chair of the Board until Bomhard’s appointment.

On behalf of the Board, Thérèse said: “I would like to thank Alison for the enormous contribution she has made to

28 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

Imperial over her 20-year career with the Company, nine of which have been as Chief Executive. The Board would also like to recognize the continued leadership and commitment she has shown to the business over recent months while the search for her successor was under way.

“I would also like to thank Matthew for the significant contribution he has made during his seven years on the Board and during his 20-year career with Imperial.”

Tobacco trading remains in line with expectations, with a weighting to the second half as previously guided.

However, following the U.S. FDA’s ban on certain flavors of cartridge-based vapor devices and weaker than expected consumer demand for vapor, we now expect constant currency full year Group net revenue to be at a similar level to last year and adjusted earnings per share to be slightly lower than last year.

First half adjusted earnings per share is expected to be down c. 10% at constant currency, due to the phasing of inventory write-downs, primarily relating to the U.S. flavor ban.

Next Generation Products (NGP) Regulatory uncertainty and adverse news flow continues to affect demand in the U.S. and Europe. We estimate this will result in significantly lower year-on-year NGP net revenue as well as increased provisions for slow-moving stock. We are implementing a further cost savings program to mitigate some of these short-term headwinds, which will result in a full year net impact on adjusted operating profit of c. £40m.

In addition, the FDA ban, which comes into force tomorrow, has resulted in a write-down of our flavored inventory with a first half adjusted operating profit impact of c. £45m; in line with our previous estimates.

We believe that NGP provides consumers with potentially less harmful

alternatives to combustible tobacco and offers a significant growth opportunity over the medium term to complement our Tobacco business. We support regulation that enforces higher product and marketing standards, which are critical for creating a stable and orderly vapor market that we can invest behind.

A Statement from Imperial Brands at its Annual General Meeting, February 5 Our tobacco business has had a good start in the first three months of the year with market share growth across the majority of our priority markets. The Europe division has benefited from price/mix gains, which have largely offset weaker volume trends. Our U.S. business remains strong, although financial delivery has been temporarily affected, as anticipated, by wholesaler destocking following the year end price increase. The Africa, Asia and Australasia division has delivered revenue growth reflecting a strong volume performance and the sell-through of the Australian duty paid inventory.

Financial guidance Our effective adjusted tax rate for the year is expected to be around 21% (2019: 19.1%). At current exchange rates, we expect a currency translation headwind on net revenue and adjusted earnings per share of c. 1% at the half year and c.

3% at the full year.

As previously guided, free cash-flow in FY20 will be affected by some oneoff cash outflows in relation to Russian excise tax liabilities (c. £100m) and the final deferred consideration for the Von Erl acquisition (c. £120m).

Potential divestments Negotiations on the potential divestment of our Premium Cigar Division remain ongoing. We continue to consider the potential divestment of other non-core operations.

sense the art of taste Vaping is enriching 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 2020 TOBACCO INTERNATIONAL

29

LEAF NEWS

Photo: TAMA Trust

Abiel Masache Kalima Banda (right) visits a tobacco farmer in southern Malawi.

MALAWI lilongwe—The embattled Malawian tobacco industry began to take steps over the winter to regain its U.S. burley market.

Tobacco from Malawi, the world’s leading exporter of burley, has been banned from the United States for alleged illegal labor practices. If this ban stays in effect, the result could be significant: Last year, the U.S. imported 6.8 million kilos of burley from Malawi.

A federal commissioner for U.S. Customs and Boarder Protection, Brenda Smith, was invited to Malawi over the winter to review the situation and communicate—if she can—what farmers here can do to lift the proscriptions.

The growers association, meanwhile,

Photo: TAMA Trust

Farmers Fight to Get Back U.S. Market

Buyers inspect tobacco before a sale in the city of Mzuzu in Malawi.

has “rebranded” itself in hopes of documenting its commitment to reform.

Formerly known as the Tobacco Association of Malawi (TAMA), the organi-

30 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

zation is now known as “TAMA Farmers Trust.” The official launch of the rebranding took place on December 19 2019 at its head office in Lilongwe.

Other aspects of the rebranding have included changes in its corporate portfolio, business orientation, diversity and clientele. The constitution, the logo, and the website have also changed.

Perhaps the biggest change is farmers moved forcefully to diversify the institution into other business ventures besides tobacco.

“We also need to look into the issue of value addition to the non-tobacco crops to maximize revenue and not to end as just primary producers,” the new association said in a statement. “Predictable markets for the non-tobacco crops have been a challenge (to locate). The new TAMA will work with interested institutions, and government to foster structured markets.”

In the new setup, the Organization has the TAMA Farmers Trust as the Apex body with TAMA Agriculture and TAMA Enterprise as the major operational branches.

Under TAMA, there are middle to large sca le farmers and Farmer Cooperatives formed through tobacco farmer clubs and those formed through other enterprises such as macadamia, coffee, soybeans, groundnuts, tea, sugarcane, horticultural crops, dairy, poultry.

PORTUGAL Malawian Leads International Growers Group castillo bronco, portugal—Ariel Masache Kalmia Banda of Lilongwe, Malawi, has been chosen as the president for 2020 of the International Tobacco Growers Association.

Jorge Aranda of Salta, Argentina, is the vice president, and Benicio A. Werner of Santa Cruz do Sul, Brazil, is the treasurer.

The association’s headquarters is in Castelo Branco, Portugal.

UNITED STATES

The Challenges Facing American Tobacco Growers Flue-cured grower Steve Griffin, president of the Tobacco Growers Association of N.C., gave the following keynote speech at the association’s annual meeting on February 7 in Raleigh, N.C. Griffin farms in Washington, N.C. he trend in recent years has not been favorable for tobacco. In 2019, the theme for our annual meeting was “Tobacco in Crisis.” The crisis continues into 2020, and it is fair to suggest that we are facing many unprecedented challenges for the new decade.

Today we are increasingly hearing about smoke free, Zero Nicotine, Vape, Heat Not Burn, and other products.

Technology is adapting that will discover and deliver new methods for nicotine delivery to adult consumers. Last year we produced the smallest crop in a century. The hurricanes and other weather factor lead to lower yields. But the fact remains it was an unprecedented size

T

crop. The cost of production was also unprecedented, and will be higher this year. It cost more to produce a pound of tobacco in the U.S. than any other time in our history. Labor was the leading cost factor. Most of us utilize the H2A guest worker program, and the wage formula places us at $12 an hour.

Also unprecedented: the weather. Bad weather is a historical constant in our business. But between late September 2018 and early September 2019, our state took direct hits from three major hurricanes. By any standards that’s a lot. It all has an increasingly adverse effect on our ability to be profitable as growers.

Above: A season of challenges—About 600 farmers and others heard a frightening speech on their outlook for 2020 delivered by Steve Griffin at the annual meeting of the Tobacco Growers Association of N.C. in Raleigh, N.C.

JANUARY/FEBRUARY 2020 TOBACCO INTERNATIONAL

31

LEAF NEWS

Numerous N.C. tobacco farmers took advantage of a training session held in conjunction with the Tobacco Growers Association meeting by Good Agriculture Practices (GAP) Connections. Here a group registers. GAP certification provides information to growers about up-to-date agricultural procedures.

Trade disputes such as the standoff with China are unprecedented as well.

The impact on tobacco has been absolute. The recent Phase I agreement offers hope, and we must push hard for positive impacts. China represents a tremendous export growth market. We must do

Steve Griffin

everything possible to restore trade.

We are a shrinking player in an increasingly globalized industry. The number of major cigarette manufacturers can be counted on two hands. Massive taxes, user fees and litigation costs mean that accompanies are very motivated by least cost ingredients, even the most significant one, tobacco leaf itself. Across the globe, we are aware that there is too much tobacco being grown, and worse, it is sold too cheap in many regions.

The procurement cycle in this industry is very frustrating. In less than 30 days, a majority of growers need to begin seeding greenhouses for the new crop. Yet to date, only one tobacco contracting company has executed contracts. A second has at least given the grower base an expectation of volumes and may sign contracts in the near future. But much of the procurement need remains unknown.

32 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2020

The number of family farms exiting the business is alarming. Some [departures are] by choice and some due to circumstances. This trend needs our full attention. I call on the industry to help slow the erosion of demand for U.S. leaf by making a strong commitment to include more of it in the final product while at the same time protecting the price. Our current combination of circumstances may seem unprecedented but our ability to execute real solutions is not.

Appointments and Awards The Association also conferred a number of awards for 2020 during its annual meeting. Among them were Outstanding Director—Randy Edwards, Johnston County. Farm Family of the Year— Grissom Family Farms, Vance County.

Extension Award—Rick Bonanno, N.C. Director of Extension.

TGANC officers for 2020 are Griffin, president; Jonathon Renn, Franklin County, vice president; Billy Carter, Moore County, secretary; Matt Grissom, Vance County, treasurer, and Clay Strickland, Sampson County, past president.

85th EDITION

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Enhance your listing by advertising in the 2021 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

Consulting Knapp AG

XXXXXXX — XXXXXXX

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

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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 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 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 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)

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)

Apron Machinery

Adhesive Applicators

Agricultural Chemicals

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

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)

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.

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 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

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, 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, 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;

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 April 29–20, 2020 Next Generation Nicotine Delivery USA 2020 JW Marriot, Los Angeles, Calif., USA. Web: arena-international.com/nextgennicotineusa/

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May 18–20, 2020 TMA’s 105th Annual Meeting & Conference Lansdowne, Resort, Leesburg, Virginia, USA. Contact: Tobacco Merchants Association, Web: tma.org.

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How Modular Design Makes a Difference in Rotogravure Printing PRESSURE MOUNTS ON GERMANY’S DOMESTIC TOBACCO BUSINESS

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Is the Vaping Revolution Running Into Roadblocks?

Leaf Dealers, Growers & Processors UNIVERSAL ACQUIRES A FRUIT AND VEGETABLE PROCESSOR

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

Hertz & Selck ............................................................. 29

ARD Filters ................................................................ 15

JEB............................................................................ 19

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

Star Agritech International ..................................... 3, C4

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

Tobacco International ................................................. 33

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

TSAL Ltd. (Tobacco Solutions Asia Limited) ............... 13

Hampshire Tobacco Machinery Services (HTMS) ........ 14

Universal Leaf ........................................................... C3

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