Tobacco International - July/August 2019 | Tobacco Products International - Quarter 2, 2019 by Tobacco International magazine

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The authority on the tobacco industry since 1886 July/August 2019

PMI to WHO:

Donâ&#x20AC;&#x2122;t Abandon Current Smokers!

CAN RUSSIA COVER LINESSTOP HERE COVER LINES THE FLOW OF HERE COVER LINES HERE CONTRABAND?

THE LAST STAND: COVER LINES HERE COVER LINES TOBACCO ANDHERE THE COVER LINES HERE ARMED FORCES

IMPERIAL PARTNERS COVER LINES HERE COVERCANNABIS LINES HERE WITH COVER LINES HERE COMPANY AUXLY

FROM COVERINDIA, LINES AN HERE COVER LINES HERE ECOLGICAL BREAKCOVER LINES HERE THROUGH IN FILTERS

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JULY/AUGUST 2019

TI TABLE OF CONTENTS 14

A LOCKWOOD PUBLICATION

tobaccointernational.com

The authority on the tobacco industry since 1886 July/August 2019

CAN RUSSIA COVER LINESSTOP HERE COVER LINES THE FLOW OF HERE COVER LINES HERE CONTRABAND?

22 bat.science.com: A new website from BAT showcases the science and innovation behind potentially reduced risk products. FEATURES

Can Russia stop the flow of illegal tobacco? Read about the aggressive measures that may soon be adopted. By Eugene Gerden, TI Russian correspondent.

PMI to WHO: Don’t Forget Current Smokers! Why PMI thinks the World Health Organization should show more concern for existing smokers.

Tobacco and the armed forces: How much regulation is too much? By Bob Crew, TI London correspondent.

Imperial Partners with Cannabis Company Auxly The attention-grabbing partnership of Imperial Brands and a small Canadian cannabis company.

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THE LAST STAND: COVER LINES HERE COVER LINES TOBACCO ANDHERE THE COVER LINES HERE ARMED FORCES

IMPERIAL PARTNERS COVER LINES HERE COVERCANNABIS LINES HERE WITH COVER LINES HERE COMPANY AUXLY

FROM COVERINDIA, LINES AN HERE COVER LINES HERE ECOLGICAL BREAK-

COVER LINES HERE THROUGH IN FILTERS

ON THE COVER The World Health Organization has abdicated its responsibility to current smokers by denying, at least by omission, that healthier alternatives exist. At least that is the stance of PMI in a recent statement. Get the details on page 26. Photo: WHO HQ in Geneva, Switzerland

A Viable Strategy for Supporting Ecosystems How you could plant flowers and herbs with discarded cigarette filters made by a company in India.

DEPARTMENTS 8

Editorial

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

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TI EDITORIAL

PUBLISHER & PRESIDENT

Robert M. Lockwood EDITOR-IN-CHIEF

On the Increasing Difficulty of Stating the Obvious About Smoking and Health I am sure it won’t come a great surprise to anyone who reads this magazine regularly that late in July, the World Health Organization issued a report about global tobacco use. Curiously, the report fails to acknowledge in any substantial way the progress that has occurred relative to alternatives to smoking cigarettes and how it could have a place in future harm reduction. I would go on about the flaws in WHO’s reasoning, but Philip Morris International’s executives, bless their hearts, came out quickly with a statement doing that very thing. I found it very persuasive and report on it extensively in a story beginning on page 26. Among the comments that really caught my attention: ““Surprisingly, this report, funded by Bloomberg Philanthropies, fails to acknowledge the robust science and innovation behind alternatives to smoking cigarettes,” said Dr. Moira Gilchrist, PMI Vice President of Strategic and Scientific Communications. “There is no question that scientifically substantiated smoke-free alternatives are better than cigarettes.” Now, just as I finish writing this, an organization called the New Nicotine Alliance issued its own response to WHO. And it is pretty damning. “The World Health Organization’s recent report on the global tobacco epidemic will do little but perpetuate smoking by making non-combustible alternatives to smoking like electronic cigarettes less accessible, more expensive and less consumer friendly,” it stated. “The WHO report reiterates the discredited argument that e-cigarettes are a gateway for young people to start smoking. Yet only last month, research published by anti-smoking charity, ASH, found that vaping remains uncommon among young people and is almost exclusively confined to current or past smokers.” I will have more details from this thought-provoking piece of writing in the next issue of Tobacco International. In other features this month, our London correspondent Bob Crew takes a thoughtful look at how the worlds’ military forces treat tobacco use from both a health and psychological viewpoint (page 18); our Russian correspondent, Eugene Gerden, returns once again to the topic of Russia and illegal tobacco and lists some draconian control measures that soon may be undertaken (page 14); BAT has introduced a new website that showcases the science and innovation behind potentially reduced risk products (page 22); Imperial has turned to Canada to form a partnership with a cannabis company (page 28); and finally, learn how an Indian company has developed biodegradable filters that can be used to plant flowers and herbs (page 32).

Christopher Bickers PRODUCTION COORDINATOR

Melinda Ayala DIRECTOR OF EXHIBITIONS

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)

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Volume 19, No. 4 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, June/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, 3743 Crescent Street, 2nd Floor, Long Island City, New York 11101, USA.

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reliability

TI DIGEST CANADA Altadis-USA Leader Transfers to Fontem Canada new brunswick—Fontem Ventures has appointed Rob Norris as general manager of Fontem Canada Ltd. Norris has been with Fontem’s parent company—Imperial Brands—for more than 20 years, most recently as head of Altadis U.S.A. Altadis is also an Imperial affiliate, through Tabacalera USA. Javier Estades, President and CEO of Tabacalera USA, noted in a press release that Norris has held a variety of increasingly responsible leadership positions in the Imperial organization. “Given his tenure here, the move to Canada is an important next step for Rob’s professional career,” Estades said. “Rob joined our Altadis U.S.A. unit as national sales and trade marketing director in 2011. He’s also led our JR Cigars as CEO and currently serves as the head of Altadis U.S.A.” Norris’ move to Fontem Ventures was slated for August 1, Estades said. For now, Paul Waller, head of sales for Altadis, and Oliver Hyams, head of trade marketing for Altadis, will report directly to Estades. • In other corporate news, Sir Patrick Sheehy, formerly Chairman of British American Tobacco, died 22 July 2019. Sir Patrick joined the board in 1970 and was chairman from 1982 until 1995. • Kim Eui-soung, a cross-border industry marketing expert, has been named new chief executive officer and president of BAT Korea. He replaces Matthieu Juery and is the first Korean head of the company since its launch 29 years ago.

JAPAN Aggressive Promotion for Logic Compact tokyo—Japan Tobacco International (JTI) has aggressively promoted its podtype vaping product Logic Compact, with the addition of 12 new markets between January and June of 2019. And that is just the beginning. JTI said it will significantly expand the distribution of its Logic Compact range across independent and wholesale channels. Logic Compact is a premium Pod device. It has been described by some media as a “high-nicotine, closed-tank vape.” The range includes magnetic refill pods, available in five flavors. “We’re thrilled at the consumer response to Logic Compact since we launched it into the KMG and convenience channels last year,” said Nick Geens, head of reduced risk products at JTI UK. “Following this success, we’re

pleased to now offer the range to all retailers nationwide (in the UK) looking to expand their vaping portfolio and take advantage of the significant sales opportunity the category presents.” With the vaping category growing 8.4 percent in the last year, Geens said JTI is continuing to innovate to ensure it meets the needs of the ever-growing number of vaping consumers in the UK.

ROMANIA A Digital Accelerator for Heated Tobacco lausanne, switzerland—Philip Morris International (PMI) announces today the installation of two digital-hybrid printing presses in its facility in Romania which produces and packs tobacco sticks for use in their heated tobacco device. The printing lines enable PMI to cut the lead-time for printed materials from weeks to days so that they can rapidly

10 TOBACCO INTERNATIONAL JULY/AUGUST 2019

respond to the dynamic needs of the growing heated tobacco segment. Andreia Fontes, Director of Printing and Converting at PMI, said, “Our factory in Romania supplies over 20 markets. This cutting-edge new technology gives us the speed, agility and efficiency to execute just-in-time production orders and adapt to consumer demand.” Commercial production with the new printing presses starts in July and is the culmination of two years’ work on prototype equipment perfected in PMI’s development center in Neuchatel, Switzerland. By the end of the year the new printing bay in Romania will be able to cover 100 percent of the output of the factory and supply materials to other factories. “This investment is another example of our commitment to leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with better alternatives for adults who would otherwise continue to smoke,” added Tony Snyder, VP Product Deployment at PMI. “We have to apply the latest technologies to tackle new challenges and accelerate the switch to smoke-free.”

UNITED STATES A New Nicotine Pouch from R.J. Reynolds winston-salem, n.c.—R.J. Reynolds Vapor Company (RJRVC) has expanded its “modern oral” portfolio with Velo, a line of tobacco leaf-free and spit-free nicotine pouches. The development of Velo reflects the evolving preferences of today’s adult tobacco consumer (ATC). Velo addresses key ATC preferences for choice, convenience, and consideration, while providing a flavorful and enjoyable experience. Velo is a tobacco-derived nicotine product that comes in the form of nicotine pouches. Velo contains no tobacco leaf or other tobacco plant matter apart from the nicotine extracted from the

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TI DIGEST tobacco plant. It is similar to snus. RJRVC now has an industry-leading portfolio of modern oral product offerings that provide ATCs with alternatives to traditional tobacco. “At RJRVC, our teams are working hard to expand our range of nicotine products to provide ATCs with a diverse set of choices,” said Shay Mustafa, Senior Vice President, Oral Business Unit. “The current expansion of Velo, and the expansion of our dissolvable nicotine lozenge product Revel earlier this year, are both evidence that we are serious about accelerating transformation in the modern oral space. These products are examples of the innovation and technology-driven options we will continue to provide in the tobacco industry to meet changing preferences.” Velo will be available in more than 70,000 outlets over the next few months. Velo is initially offered in two flavors, mint and citrus, and two nicotine strengths, 2mg and 4mg. Import-

ant information regarding the use of this product is available on the branded website, www.velo.com, and contained on the product packaging.

NAMES IN THE NEWS williamsville, n.y.—Clifford Fleet, former Philip Morris USA chief executive and president, has been named President and Chief Executive of 22nd Century Group. He replaces Henry Sicignano III, who resigned in July for personal reasons . 22nd Century is a plant biotechnology company that concentrates on tobacco harm reduction, very low nicotine content (VLNC) tobacco, and hemp/ cannabis plant research. Sicignano will continue to serve the Company on a consultancy basis. Michael Zercher, 22nd Century’s Chief Operating Officer, will oversee the Company’s operations as the Board of Directors conducts a search for Sicignano’s successor.

“The Board is thankful for Henry’s years of service and leadership,” said James W. Cornell, Director & Chairman of the Board of 22nd Century Group. “He has made tremendous contributions to our Company, and we are grateful that we can retain his deep expertise and knowledge on a consulting basis for the next several years as the Company moves into what we believe is an exciting phase of growth.” He noted that 22d Century recently submitted a Pre-Market Tobacco Application and Modified Risk Tobacco Product Application with the U.S. Food and Drug Administration seeking authorization to commercialize the company’s proprietary VLNC cigarettes. “We are also making great strides to become a leader in hemp/cannabis. We believe that the future of our Company is bright and that we are well-positioned to deliver significant value for our shareholders. 22nd Century is in a strong position.”

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12 TOBACCO INTERNATIONAL JULY/AUGUST 2019

SMUGGLING

Where Russians buy cigarettes illegally— the trunk of a car in an unspecified location in Russia.

Fixing the Counterfeit Flow in Russia As more aggressive measures are adopted, the volume of illegal cigarettes and tobacco products keeps growing. By Eugene Gerden, TI Russian Correspondent he Russian government plans to consider additional measures to deal with the ever-growing share of illegal cigarettes and tobacco products in the domestic market, which poses a threat to health to the domestic consumers and negatively affects the business of global majors, according to recent statements of some senior state officials and industry analysts. This year, the share of illegal cigarettes in the Russian tobacco market reached 10.3 percent (compared to 7.7 percent a year earlier). That is the highest figure for the Russian and its tobacco market since the collapse of the USSR in 1991, according to the Russian Ministry of Industry and Trade.

Half from Eurasia Almost half of the illegal cigarettes transported into Russia originates in the territory of the Eurasian Economic Union (EAEU), an economic union of states, which in addition to Russia includes Armenia, Belarus, Kazakhstan and Kyrgyzstan. In the meantime, the rising tide of counterfeit in the Russian tobacco market has already sparked serious concerns from global producers operating in Russia. Sergey Golovko, J T I Ru ssia’s vice-president for corporate relations and communications, has said the main reason for the ever-growing volume of counterfeit is the price difference between legal and illegal products

14 TOBACCO INTERNATIONAL JULY/AUGUST 2019

presented in the local market, which forces local customers to give a preference to cheaper products. The same position is shared by Ilona Mirtova, corporate affairs director of Imperial Tobacco. Currently the demand for illegal and counterfeit tobacco products in the Russian market is steadily growing, while the bulk of them sold in the poorest regions of Russia (primarily its Southern part). Producers also believe the local government in its fight with counterfeit should refrain from a further increase of excise and other taxes. They fear that an increase might result in the massive outflow of investments from the Russian tobacco market and deterioration of the overall business environment in the country. Wouldn’t increase revenue There is no reason to think it would increase revenues. According to the recent data of the Russian Federal Treasury, in 2018, revenues from excises from tobacco industry fell by 1.3

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Where Russians buy cigarettes legallyâ&#x20AC;&#x201D;a tobacco kiosk near Moscow.

percent to RUB 583.2 billion (US$9,25 billion), whereas a year earlier they grew by 22 percent. Currently the Russian tobacco industry is considered to be fairly transparent in terms of the collection of excise taxes, with the rate of collection being estimated at about 99 percent.

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According to Igor Cherkassky, head of department for countering illicit trafficking of BAT Russia, the growth of excise taxes, as proposed by some senior state officials, will only deteriorate the current market situation. It would be better to increase the fines and introduce other penalties for selling of illegal products. Cherkassky has also added that Russian law enforcement agencies should more actively respond to such crimes, the criminal income of which usually exceeds millions of dollars. Sergey Slipchenko, vice president for corporate affairs of Philip Morris International in Russia said one of the ways to solve the problem of counterfeit in the Russian tobacco market is introducing a minimum price for a pack of cigarettes in the country. That will be similar to a scheme, which is already used in the case of alcohol in Russia. Finally, another measure, which is proposed by producers, may involve the introduction of mandatory digital marking of tobacco products in the local market. According to estimates of the four largest tobacco companiesâ&#x20AC;&#x201D;JTI, Philip Morris International, BAT Russia and Imperial Tobacco, the lack of any measures from the state will result in further growth of counterfeit tobacco products to about 23.6 billion pieces by the end of the current year (compared to the current 16-17 billion). Losses from the Russian federal budget in the form of under-received excise taxes and VAT, which may reach about 70 billion rubles (US$1.3 billion). Russian analysts believe the local governments will probably defer to the position of global majors in regard to the fight with counterfeit, mainly because of large transfers from this business in the form of taxes and other mandatory payments to the Russian federal budget. Lower cost of doing business Thanks to this, the government in recent months has decided to significantly ease the pressure of doing business in Russia. An example of this is a recent decision of the Russian Ministry of Health to revise its earlier announced plans to reduce smoking in Russia by 28 percent over the next 16 years (an average of 1.7 percent per year). In addition to an active propaganda of healthy lifestyle among the local population, implementation of these plans should have been achieved through additional pressure on the business of global tobacco majors, operating in the domestic market. At present the share of the Russian population that smokes is estimated at 22.5 percent. According to initial state plans, the share of smoking should have been declined from the current 22.5 percent to 5 percent by 2035.

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REGULATION the Arabian Gulf currently (pictured) are, for example, a powerful reminder of how tense and nerve-wracking these dangerous military exploits and their outcomes can be. According to the Truth Initiative in Washington DC, the following are the percentages of smokers in the different branches of the U.S. armed forces: Marine Corps (30.8 percent), Army (26.7 percent) and Nav y (24.4 percent), Coast Guard (19.9 percent) and Air Force (16.7 percent). Clearly, as members of the armed forces reach for their guns and other military weapons, many reach for their cigarettes as well. There is no reason to think that the situation in the United States will be strikingly different from that in other nations where armed forces tobacco smoking is a source of concern: The military defense of most if not all countries will almost certainly be reliant on a high or low proportion of tobacco smokers in their ranks.

The Last stand: Is this the one place where smoking is in the national interest? By Bob Crew, TI London Correspondent

How Many Armed Forces and How Many Cigarettes? There are 29 major armed forces in our troubled/warring world, some of whom employ many more fighting men and/ or women than others. Larger and/or smaller percentages of them smoke. All represent a significant (if not very large) market for tobacco and cigarette companies in different parts of the world and with the blessing of the governments in question. They may support the World Health Organization in theoryâ&#x20AC;&#x201D;when it suits themâ&#x20AC;&#x201D;but turn a blind eye toward health matters when it suits them so to do.

t is hardly surprising that men and women of war need the relief of tobacco (or at lest think they do) when tensions are high and their lives are at riskâ&#x20AC;&#x201D;either regularly or once in a while. Now, cigarette smoking

How Much is a Lot? The estimable size of this tobacco and cigarette market is not commonly known if known at all, but there are those better equipped than this pub-

is reportedly on the increase in the U.S. Armed Forces and it seems that tobacco is contributing to the defense of the United States and its interests at home and abroad. The latest tensions with Iran in

18 TOBACCO INTERNATIONAL JULY/AUGUST 2019

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REGULATION lication to make an educated guess at its size, not that the Big Tobacco companies will want to attract too much attention to this, or indeed the Health Departments and War Offices of the countries in question. T he fol low i ng a re t he world ’s top-29 biggest armed forces around the world: The aforesaid U.S. tobacco smok-

WORLD’S LARGEST ARMIES RANK

COUNTRY

ACTIVE

China

2,183,000

India

1,395,100

United States

1,347,300

North Korea

1,190,000

Russia

831,000

Pakistan

653,800

South Korea

630,000

Iran

523,000

Vietnam

482,000

Egypt

438,500

Myanmar

406,000

Indonesia

395,500

Thailand

360,850

Turkey

355,200

Brazil

334,500

Colombia

293,200

Mexico

277,150

Japan

247,150

Sudan

244,300

Sri Lanka

243,000

Saudi Arabia

227,000

Taiwan

215,000

Ukraine

204,000

France

202,950

Eritrea

201,750

Morocco

195,800

South Sudan

185,000

Germany

176,800

Israel

176,500

Total

680,000

“You ask me what we need to win this war. I answer, tobacco as much as bullets.” —General John Pershing, Commander, American Expeditionary Force, 1917. ing studies show that smoking rates increase in the U.S. armed forces between recruitment and active duty. “38 percent of smokers in the military” began to smoke on and after joining the armed forces, with about 30 percent of junior enlisted personnel reporting current cigarette smoking after [not before] joining the military. Also, active military deployment is associated with starting to smoke and, more strongly, with continuing to smoke, particularly among those with prolonged deployments, multiple deployments or combat exposures. As early as 2011, a study of members of the U.S. military by the Department of Defense found—surprise, sur prise ! —t hat combat ex posure significantly increases smoking initiation. Nonsmokers had 60 percent higher odds of starting to smoke after deployment while past smokers had 30 percent higher odds of resuming smoking after deployment, compared with nonsmokers and past smokers who had not seen combat. Predictably, as combat exposure increases, the percentage of military members who smoke increases across all sectors of the U.S. armed forces.

free,” and never mind the U.S. Department of Defense tobacco control policy prohibiting smoking in indoor facilities. US Tobacco Advertising Allowed in Military Magazines More interestingly, we are told that nearly 10 percent of military newspapers contain tobacco advertisements. This clearly suggests—does it not?— that the U.S. government and its medics do not consider tobacco smoking such a bad thing for its fighting men and women! We are also told that only the U.S. Air Force prohibits tobacco advertising in its publications whilst tobacco control messages in military newspapers are less prevalent than other health issues and use less effective messaging strategies. All things considered, it would seem that there is a very big double standard applying to what the U.S. government will and will not allow for smoking civilians in the U.S. and smoking men and women of war. That applies as well to what it will allow the tobacco and cigarette companies to do when marketing and ad-

There are many inherent difficulties in trying to eliminate a behavior—tobacco use—that many individuals in the military firmly believe is a right and personal freedom. —Researcher Terry Conway, San Diego State University. Despite multiple attempts in various branches of the U.S. armed forces to initiate smoke free policies, the Truth Initiative tells us that no military branch is completely “smoke-

20 TOBACCO INTERNATIONAL JULY/AUGUST 2019

vertising to these two respectively very different groups. Ironically, the segment most in the control of the government enjoy many more rights to smoke than civilians.

Photos: Copyright BAT

TECHNOLOGY

A Dedicated Website to Showcase Science and Innovation Fresh articles, high-impact videos and product animations make bat-science.com a valuable resource on potentially reduced-risk products. Staff Report n open and transparent approach to scientific research makes bat-science.com, British American Tobacco’s dedicated science website, the perfect place to showcase the science behind the company’s potentially reduced-risk products (PRRPs). “The site has a fresh new look and educational content designed to inform, inspire and engage audiences around the world,” Dr. David O’Reilly, BAT’s Scientific Research Director. The Pro Zone, a new feature on the site, is a space for those with more technical backgrounds to access detailed science. The company’s range of next generation tobacco and nicotine

products are showcased within their scientific context, and the section is designed to help regulators and scientists understand the careful and stringent testing these products undergo. Those looking for more general scientific information about vapor, tobacco heating products and modern oral products can browse the Product Science section. These products all feature in the industry-leading website, with information on how they work and how they are tested by scientists. Scientific Engagement More Critical Now The new site is a key part of BAT’s scientific engagement program, sitting

22 TOBACCO INTERNATIONAL JULY/AUGUST 2019

alongside the R&D visitor program and biennial Science & Technology Report. “Scientific engagement is vital now more than ever,” says Sarah Cooney, Head of Scientific Collaboration & Communication at BAT, adding that “The science behind this next generation of tobacco and nicotine products is what will guide regulation and opinion.” Communication is key to dispelling false assumptions and misconceptions, she says. “It is our mission to ensure that people are as well informed as possible about BAT’s research.” Visitors can find out more about the company’s R&D program via the ‘Our story’ section of the website. It details the company’s focus on open and transparent research, willingness to work and collaborate with other organizations, and the addition of Reynolds American Inc. material to the scientific research library.

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TECHNOLOGY

Theme of collaboration This contributes to the overarching theme of collaboration, as in the Innovation section, which details BAT’s ongoing work with inventors to create disruptive technologies. “Our aim is to stimulate and participate in the debate, which we feel is critical for this emerging field to develop,” says Cooney. “We want to be part of the discussions.” Other parts of the site will be more familiar to regular visitors, such as the

Library, a repository of all BAT’s posters, presentations, and publications, but revamped to be more user-friendly, including a wider range of keywords to help users find what they’re looking for. When it was launched in 2008, bat-science.com was created by scientists for scientists. But the need to communicate PRRP science to a broader audience that wants to understand the science, including regulators, public health communities, journalists, and scientists, has grown significantly.

24 TOBACCO INTERNATIONAL JULY/AUGUST 2019

Expanded accessibility Expanding the website’s accessibility was essential to help those with an interest in the sector, regardless of their level of science literacy, see where BAT goes next. Chris Proctor, Group Head of PRRP Science, said the website was a key part of R&D’s scientific engagement program. “Bat-science.com is well known within the scientific community, and I’m delighted that we now have a more dynamic, PRRP-focused website that will appeal to all our stakeholders with an interest in the science behind PRRPs.” Take a look at the new bat-science. com. You can also follow BAT’s R&D on Twitter @BAT_Sci. For more information, contact Sarah Cooney, BAT’s Head of Scientific Collaboration & Communication, at Sarah_Cooney@ bat.com.

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Photo: Copyright WHO/P. Virot

OPINION

PMI to WHO:

Don’t Forget Current Smokers! The WHO is missing a major opportunity to help smokers by putting science and innovation at the core of public policy. Contributed Report he World Health Organization (WHO) recently released a report on global tobacco use which urges governments to step up efforts to help smokers quit, according to a statement from Philip Morris International. There is no question that the best choice is never to start using cigarettes or nicotine-containing products, or if someone has, they should quit altogether, said PMI’s statement. By encouraging governments to double down on efforts to help men and women who smoke quit, the WHO takes an admirable stance. But the reality is that even with the best treatments available today, many

people will not succeed, it said. In any given year, about nine out of 10 men and women who are already smoking will continue to do so, and their risk of smoking-related disease will continue to increase. “Surprisingly, this report, funded by Bloomberg Philanthropies, fails to acknowledge the robust science and innovation behind alternatives to smoking cigarettes,” the statement contended. “The WHO misses a critical scientific point: It is the burning of tobacco that produces the vast majority of the harmful chemicals that cause smoking-related diseases, not tobacco itself.” Hundreds of millions of men and women who don’t quit stand to gain

26 TOBACCO INTERNATIONAL JULY/AUGUST 2019

the most from less harmful alternatives to cigarettes. In fact, a global survey of 31,000 people in 31 countries found that 88 percent of respondents think smokers should have access to less harmful alternatives to cigarettes. PMI’s alternatives alone have already helped eight million people abandon cigarettes entirely. “The WHO is failing the one billion men and women around the world that continue to smoke by continuing to ignore the science behind better alternatives to cigarettes,” said Dr. Moira Gilchrist, Vice President of Strategic and Scientific Communications, Philip Morris International. “There is no question that scientifically substantiated smoke-free alternatives are better than cigarettes. The WHO is perfectly situated to encourage independent research and provide science-based recommendations to smokers.” Instead, they seem to be closing down dialogue on promising alterna-

OPINION

The WHO is failing the one billion men and women around the world that continue to smoke by continuing to ignore the science behind better alternatives to cigarettes. tives to continued smoking, choosing instead to focus solely on pharmaceutical industry products. In 1997, the UN Focal Point on Tobacco or Health recommended that “in order to assist smokers who are so heavily dependent that they cannot possibly stop smoking, every effort should be made to reduce the toxicity of existing tobacco products.” That same report also recommends that “the WHO is requested to consider the above recommendations in future policy-development activities, including the drafting of a framework convention on tobacco control.” PMI heeded the call for reduced toxicity products and for more than 20 years has been working on developing and scientifically assessing less harmful alternatives to cigarettes that do not create smoke, because they do not combust.

is made transparently available for just that purpose. To date, there have been 73 independent studies and scientific reviews from universities and government research institutes in countries like Germany, Japan and the United Kingdom. In general, the conclusions from these studies and reviews are in line with PMI’s own data. Dr. Tedros Adhanom Ghebreyesus, Director-General of the WHO, outlines in his own vision statement that “under my leadership an enhanced and independent WHO will take a science-led and innovation-based approach that is results-oriented and responsive, maximizes inclusive partnerships, and ensures collective priority setting with all stakeholders.” One has to ask, why does the WHO not apply these same principles to tobacco control?

We cannot change the past, but we can change the future for the 1 billion people around the world who continue to smoke. PMI’s scientific assessment program is inspired by the well-recognized practices of the pharmaceutical industry and in line with the draft guidance of the U.S. FDA for Modified Risk Tobacco Product (MRTP) Applications. “Our scientific studies resulted in more than 340 references in peer-reviewed articles in scientific journals and book chapters,” the statement said. “All our clinical studies are registered on the public website www.ClinicalTrials.gov.” PMI encourages rigorous assessment of our scientific research, which

28 TOBACCO INTERNATIONAL JULY/AUGUST 2019

“We remain committed to having an open and transparent dialogue based on science,” said Dr. Gilchrist. “We cannot change the past, but we can change the future for the 1 billion people around the world who continue to smoke.” PMI says its smoke-free strategy complements efforts by the WHO to tackle smoking. The company says its is to reduce smoking almost four times faster than the target set by WHO, setting its own goal to switch at least 40 million people who would otherwise have smoked cigarettes to its own smoke-free products by 2025.

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Photo: Auxly Cannabis Group Inc.

IMPERIAL

Photo: Nerudia/Imperial Brands

Imperial Partners with Cannabis Company Auxly The investment provides new options for future growth. From Staff Reports mperial Brands PLC announced in late July that it had formed a research and development partnership with Auxly Cannabis Group Inc., a listed Canadian cannabis company. Imperial will invest CAD123 million (£75 million) by way of a convertible debenture and grant Auxly global licenses to its vaping technology and access to its innovation business Nerudia. At the time, Matthew Phillips, Imperial’s Chief Development Officer, said, “Diversifying our NGP portfolio with this investment provides Imperial with further options for future growth and builds on last year’s investment in Oxford Cannabinoid Technologies. “Auxly’s unique assets and capabilities, including strong science and product development credentials, make it an ideal partner for Imperial in the legal Canadian cannabis market.” “This investment from Imperial Brands will enhance Auxly’s ability to

continue to deliver on our business plans and accelerate our growth initiatives to expand our portfolio of branded derivative products,” said Hugo Alves, President of Auxly. “The timing is ideal as we prepare to bring our portfolio of innovative cannabis products to the Canadian market following the legalization of edibles, extracts and topicals later this year.” Legalized cannabis is a highly regulated adjacent sector to tobacco, the announcement said. Following an extensive evaluation of the Canadian market Imperial selected Auxly as its partner of choice due to the high caliber of its assets, people and capabilities.

Top: Auxly Cannabis Group believes its cornerstone brands are strategically positioned to capture the interest of a rapidly growing global market. Above: Since 2017, Nerudia has been Imperial’s home of R&D for Next Generation Products (NGPs).

Imperial’s investment will accelerate the delivery of Auxly’s business plan ahead of significant regulatory change to the Canadian cannabis market in October 2019. The transaction grants Auxly global licenses to Imperial’s vaping technology and research and development capabilities for cannabis use. The shared abili-

“Auxly’s unique assets and capabilities, including strong science and product development credentials, make it an ideal partner for Imperial in the legal Canadian cannabis market.”

30 TOBACCO INTERNATIONAL JULY/AUGUST 2019

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IMPERIAL

Photo: Auxly Cannabis Group Inc.

What is Auxly Cannabis Group?

A purpose-built indoor cannabis cultivation facility in Carleton Place, Ontario by wholly-owned Auxly subsidiary, Kolab Project.

ty to rapidly innovate as the Canadian market evolves is key to future growth, and Auxly will work closely with a small dedicated team from Nerudia in developing a portfolio of new and enhanced brands and products. Imperial will be offered one of five director positions and one non-voting observer on Auxly’s board; these individuals will have limited involvement in the operational running of the business. In addition, the Chair of Imperial’s Product Stewardship and Health Group will sit on Auxly’s Safety Board, which will have oversight of the controls in place to ensure the safety, efficacy and quality of Auxly’s products. This transaction builds on Imperial’s initial investment in the cannabis sector which took place in June 2018, when it took a stake in Oxford Cannabinoid Technologies (OCT). OCT is a biopharmaceutical company licensed by the UK Home Office that is focused on researching, developing, and licensing cannabinoid-based compounds and therapies. Cannabis Market Overview for Canada The legalization and regulation of cannabis in Canada is governed by the Cannabis Act, which provides a strict framework for controlling the produc-

Auxly, listed on the TSX Venture Exchange and headquartered in Toronto, has a diversified supply of raw cannabis and hemp from sources in Canada and Uruguay. The company is led by a highly experienced leadership team drawn from the cannabis sector and complementary industries, such as consumer goods, pharmaceuticals, and other highly regulated industries, including alcohol and tobacco. The team has a relentless focus on science, safety and duty of care when creating new cannabis brands and products. This includes robust scientific assessment of products and ensuring that all manufacturing, sale, and marketing activities fully comply with the law and Auxly’s standards. Auxly’s science and product development activities are principally undertaken by two wholly owned subsidiaries: • Dosecann Inc. (Dosecann) and • KGK Science Inc. (KGK). Dosecann is a state-of-the-art licensed facility with in-house analytical testing, extraction, R&D, product development and manufacturing capabilities. It has developed a portfolio of high-quality medical, wellness and adult-use products for launch following the legalization of derivative products in Canada. KGK is a contract research organization that serves many of North America’s leading nutraceutical, natural health products and consumer packaged goods companies. As well as providing clinical research services to clients to substantiate claims for their products, KGK also provides extensive regulatory affairs expertise. No other company in the Canadian cannabis industry has the combined in-house capabilities of Auxly through its ownership of Dosecann and KGK. tion, distribution, sale and possession of cannabis products. The government has stated that the purpose of the Act is to prevent youth from accessing cannabis and to displace the illegal cannabis market. Imperial and Auxly support these goals and are committed to developing and selling high quality branded products that stringently adhere to all regulations. Regulation in Canada will further liberalize in October 2019 when the legal sale of derivative products,

32 TOBACCO INTERNATIONAL JULY/AUGUST 2019

such as cannabis edibles, cannabis extracts (vapes) and cannabis topicals (lotions, oils) will be permitted. Vaping products are widely expected to be the fastest growing segment of the derivative market. According to Imperial Brands, the legal Canadian cannabis market is currently estimated to be worth C$3 billion a year and is forecast to grow to around C$10 billion by 2025. The market for derivative cannabis products is expected to be worth C$6 billion by 2025.

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OPINION Butts to Buds— Karma Filter Tips contain flower or herb seed from which plants can grow if the product is discarded in soil.

A Viable Strategy for Supporting Ecosystems Corporate responsibility takes on new urgency when saving the planet is a key goal. By Roger Penn, LA Casucha Consulting SAS, France he ever-growing awareness of associated social and ecological consequences of tobacco products, has become ever more evident and thus concerning. Thus, having voiced these concerns in various international meetings, presentations and written articles, it was with great interest and endeavor that this author fell upon a website, just under two years ago. I discovered this precursor information while preparing a brief for a client, Tipsy Tobacco BV, with whom I had been working with in a start-up environment in European markets relating to Shisha tobacco and related roll your own (RYO) products. The website (www.karmatips.in) was indeed so far reaching and informative on an initiative very close to the author and Tipsy Tobacco’s sustainability missions that I immediately contacted the owner, Vedobroto “Ved” Roy, in Bangalore, India. I wanted to explore a range of biodegradable, non-wood derived, no-chemicals-added, tips and rolling paper that in fact incorporated accredited plant seeds

that after use of the article—discarded into nature or one’s garden—would degrade very quickly. Given correct conditions this process would result in growth of flowers or herbal plants. This was the start of the “Butts to Buds” and “Paper Alive” initiatives that have been jointly developed by the Tipsy/Prasadam Industries, more recently cast as “Throw to Grow “ initiative in African markets. Following further discussions between this author, Ved, and CEO of Tipsy Tobacco—Victor Ertugrul—there followed a joint venture between the companies. Now the products and their manufacturing bases are well on their sustainability pathways. A recent agreement with a major, international packaging group has led to the Karma brand now being extended to larger packaging units (carrier bags), corporate stationery, corporate calendars and the like—all based on the biodegradability and derivation of plants from degraded, non-wood paper units. Karma has significantly extended its filter and rolling paper booklets range to cater to various markets, as well as devel-

34 TOBACCO INTERNATIONAL JULY/AUGUST 2019

oping environmentally friendly inks for printing on packages. All bases are covered very professionally in these exciting new sustainable solutions to giving very ecologically-based products, and they attempt to give some solution to the terrible current situation that we have in order to address the scourge of single-use plastics on this highly vulnerable planet, Earth. As one of Ved’s main mantra’s say, “Every one of our products has a social initiative behind it”—I can attest to this fact as he employs widows of the farmers in his region who had committed suicide due to the terrible drought conditions in that part of India. What a laudable social initiative as well as an ecological one! An excellent example here is that of a natural adhesive that is being tested. It contains minerals/proteins from a totally natural source and when used in countries with low nutrition diets, it can be considered as delivering at least part of nutrient intake for the consumer. This adhesive can be used on RYO cigs, wrappers, etc. Another related technology, outside the sphere of paper, is that of the Snake Guard program which has been initiated by Prasadam Industries and is currently under evaluation by accrediting authorities in India. Please see Prasadam Industries website for further info on this life-saving technology with such social initiatives. I can only encourage all interested to join this forward-looking group, with a most talented, heartfelt approach to their programs, sustainability and doing what can be done to save the planet in own personal and corporate ways. Please start now! Our ecosystems will be all the better for our conscious actions. For more information, visit www. karma-bag.com or e-mail queries to victor.e@tipsy.shop.

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The authority on the tobacco industry since 1886

The authority on the tobacco industry since 1886 September 2018

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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CALENDAR OF EVENTS September 15–18, 2019 TSRC 2019 (Tobacco Science Research Conference) Lansdowne Conference Center, Leesburg, Virginia. Web: tsrcinfo.com. September 20–22, 2019 InterTabac/InterSupply 2019 Messe Westfalenhallen Exhibition Centre, Dortmund, Germany. Web: intertabac.de.

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HOW JTI IS MAKING PROGRESS TOWARD TOBACCO SUSTAINABILITY

COULD BREXIT MAKE HOW A CODING A SMOKER BRITAIN’S STATION APPROACH PRIME MINISTER? HELPS IN A TRACK & TRACE PROGRAM

A JOINT LEAF VENTURE IS ONE STEP CLOSER IN NAMIBIA

ORIENTAL LEAF MARKETS IN EQUILIBRIUM

Associations

REGULATIONS RISE ON RUSSIAN TOBACCO

A REPORT ON BRAZILIAN LEAF IN 2019

GROWING SEASON BEGINS IN NORTH AMERICA

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ADVERTISER INDEX Airco Diet ................................................................... 28

Star Agritech International ......................................... 25

Aiger International ...................................................... 19

Sumatra .................................................................... 13

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

Sunel ......................................................................... 27

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

SWM International ..................................................... 31

Burley Tobacco Cooperative ....................................... 29 Tabaknatie ................................................................ 21 delfort Group ...................................................... 7, 9, 11 Hampshire Tobacco Machinery Services (HTMS) ....... 24

Tipsy Filters & Tobacco .............................................. 12

G.D S.p.A. ................................................................. 33

TSAL Ltd. (Tobacco Solutions Asia Limited) ............... 23

Isatec Ltd. ................................................................. 16

U.S. Tobacco Cooperative, Inc. .................................. 15

JTI .............................................................................. 3

Universal Leaf ........................................................... 17

36 TOBACCO INTERNATIONAL JULY/AUGUST 2019

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 2, 2019

UK’S TURMEAUS INVESTS IN ITS GROWING CUBAN SALES

Opens Second La Casa del Habano Shop; More to Come • InterTabac 2019 Gears up for Big Infusion of Next Generation Products

• Major Improvements Rolled Out to InterTabac Venue: Westfalenhallen, Dortmund

• El Septimo Geneva Extends its Premium Brand to Two New Luxury Cigar Lounges

{Contents}

TOBACCO PRODUCTS INTERNATIONAL » Q2 2019

{ EDITORIAL } E. EDWARD “TED” HOYT III Editor ROBERT M. LOCKWOOD Publisher & President { ART & PRODUCTION } MELINDA AYALA Production Coordinator ROXANNE CORDOVA MELENDEZ Accountant { ADVERTISING REPRESENTATIVES }

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FEATURES EDITORIAL SUBMISSIONS/INQUIRIES:

{ RETAILING SPOTLIGHT }

8 Turmeaus adds Norfolk Shop Turmeaus’ parent firm, C.Gars Ltd., also opens its second La Casa del Habano location, in Knutsford-Chesire. Meanwhile, El Septimo launches cigar lounges in Portugal and France. » STAFF REPORT

editor@tobaccoproductsmag.com

AD INDEX DEPARTMENTS Industry News .......................................4 Brand News .......................................... 16 Showcase............................................. 20

14 InterTabac 2019: The Entire World of Next Generation Products InterTabac, the world’s flagship tobacco trade fair, presents major market players and new exhibitors in the NGP segment in 2019. » STAFF REPORT

{ TRADEFAIR PREVIEW }

Royal Agio Cigars ........................ 17 David Ross International ................ 7 Durfort Holdings ......................... C2 Drew Estate ............................... 19 Horizon Cigar Company ................ 15 Intercontinental Trading .............. 11 Republic Technologies ................... 5 Rips .......................................... 12 Roll 4 You .................................... 9 Viking Cigars .............................. 13

Tobacco Products INTERNATIONAL

Tobacco Products International

TPI 3

{Industry News} PMI Targets Online Hub to “Unsmokers” Philip Morris International (PMI) has

Scandinavian Tobacco Group A/S Acquires Premium Pipe Tobacco Brands from BAT

launched a new “online hub for those

Scandinavian Tobacco Group A/S has closed a deal to acquire certain pipe tobacco

the world.” The web-based campaign

trademarks and designs from Dunhill Tobacco Company of London Limited, a subsid-

at unsmokeyourworld.com aims to

iary of British American Tobacco p.l.c. Included in the deal are premium pipe tobacco

“provide an inspiring and engaging

trademarks such as Early Morning Pipe, Nightcap, Royal Yacht, and Elizabethan Mixture

place to help people kick-start their

that were previously sold under the Dunhill brand and carry a solid reputation as well

smoke-free journeys.

as premium positioning. STG said the price paid is “confidential, but immaterial.”

that want to unsmoke themselves or their loved ones, their communities, or

“The best way to unsmoke is

Scandinavian Tobacco Group will market the acquired trademarks as sub-

to quit cigarettes and nicotine com-

brands to existing brands in the company’s portfolio. The acquisition strengthens

pletely,” PMI proposes. “For adult

Scandinavian Tobacco Group’s product range in the premium pipe tobacco segment

smokers that don’t [quit], the next

in important pipe tobacco markets such as the US, Germany, and across Asia.

best option is to switch to a better

“We are very happy and proud to add these well-known pipe tobacco brands to our existing strong portfolio,” said Regis Broersma, Senior Vice President for

alternative.” For those seeking to quit smok-

Scandinavian Tobacco Group’s Smoking Tobacco & Accessories Division. “They will

ing, the website outlines various types

enhance our offering to our consumers—and we look forward to protect and explore

of nicotine replacement therapies

the full potential of the portfolio by leveraging our sales and marketing competencies.”

(NRT). For those seeking alternatives to smoking, the site explains the

EU Track and Trace System for Cigarettes, Fine Cut Officially Launched 20 May

differences between combustible

Five years after the Tobacco Products Directive

products such as snus. No PMI brands

of 2014 specified the establishment of EU-wide

or products are mentioned.

systems of traceability and security features

tobacco and e-cigarettes, heated tobacco technologies, and traditional

The site also promotes industry

for tobacco products to address illicit trade, the

efforts to adapt smoke-free regu-

so-called “track and trace” system became opera-

lations world-wide to distinguish

tional in early May and legally launched on 20 May.

between cigarettes and other smoke-

Initially, systems of traceability and security

free alternatives. Social media engage-

features must be in place for cigarettes and roll-your-own tobacco, but will apply

ment and an opportunity to sign up

to all other tobacco products (OTP) by 20 May 2024. The staged roll-out was

for a newsletter seek to build visitor

designed to provide manufacturers of OTP—which are often small and medi-

engagement in the company’s desire

um-sized companies—with additional time to implement the systems, as well as

to “unsmoke the world.”

benefit from the experience gained by the larger, initial adopters before the systems become applicable to them. Under the traceability system, all packets of tobacco products are required to be marked with a unique identifier. Businesses involved in tobacco trade are required to record the movements of these products throughout the supply chain and transmit the related information to an independent provider. The data is then made accessible to the authorities of EU countries and to the Commission for enforcement purposes. The principal goal is to reduce circulation of non-compliant tobacco products.

TPI 4

Q2 2019

The site is administered by PMI subsidiary Philip Morris Products S.A.

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{Industry News}

Cigar Maker Maya Selva Honored with Medal of Recognition from French Senate on June 4, 2019, the President

STG Taps Broersma to Head Smoking Tobacco, Accessories Division as SVP

of the Senate Gerard Larcher

Régis Broersma has accepted a new

presented Maya Selva, founder

role in Scandinavian Tobacco Group

of Maya Selva Cigars, with the

(STG), relocating to Europe to take

Senate´s Medal in a special

over the responsibility of the compa-

ceremony held in the Boffrand

ny’s Smoking Tobacco & Accessories

Room. The award was granted

Division as Senior Vice President.

to honor Selva´s work in devel-

Broersma previously served as

oping handmade cigars, and

President of U.S.-based General Cigar

helping highlight the artisan,

Company and Senior Vice President of

his craftsmanship, and this

Scandinavian Tobacco Group’s North

centuries-old tradition. This

America Branded Business Division

annual event is an initiative

(General Cigar, Scandinavian Tobacco

of the French Senate and the

Group Lane, and Scandinavian

Diplomatic Corps in France.

Tobacco Group Canada).

PARIS —As

part of France’s 11th

annual Latin America Week,

Broersma joined STG in 2002 and has over the years held several marketing and leadership roles in the company. He has been President of General Cigar Company since 2016 Born in France and raised in Tegucigalpa, Honduras,

and Senior Vice President of the

Selva crafts three different series of cigars at her

North America Branded Business

company’s own factory in Danlí, Honduras.

Division since 2018. Broersma will continue to lead

Nicaragua’s Mombacho Cigars Adds German Warehouse to Expand European Distribution

General Cigar and the North America

DÜSSELDORF, GERMANY —Mombacho

taking on further responsibility of

Cigars S.S. announced it will be serving

Branded Business Division with Gene Richter, VP US Sales Premium,

the European market through a warehouse in Germany in collaboration with

Mass Market Sales US, Commercial

PasionPuro GmbH & Co. KG

Excellence and

The new warehouse was sched-

Contract

uled to receive Nicaraguan cigar

Manufacturing

maker’s first shipment before the

until a suc-

end of June 2019. Mombacho Cigars

cessor for

are already distributed in Nor way,

Broersma has

Netherlands, Sweden, Denmark, Germany, Switzerland and Italy; the

Casa Favilli in Grenada, Nicaragua, the boutique factory of Mombacho Cigars S.A.

company plans to open Spain, Belgium, and Luxembourg before the end of 2019. Mombacho Cigars crafts its cigars at its own factory, Casa Favilli—a preserved and renovated colonial villa, in Grenada, Nicaragua. Both Mombacho Cigars and PasionPuro will be present to welcome every European distributor at booth E.30, Hall 4, at Intertabac 2019 in Dortmund.

TPI 6

Q2 2019

been named.

SUBSCRIBENOW! Published quarterly, Tobacco Products International is designed for tobacco product importers, exporters, distributors, wholesalers and retailers who are looking for new products and services.

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 1, 2019

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 3, 2018

Quarter 4, 2018

21ST HABANOS FESTIVAL

INTERTABAC MARKS 40 YEARS

Habanos S.A. celebrates Havana’s 500th Anniversary, and the 20th Anniversary of San Cristóbal de La Habana at the 2019 Habanos Festival.

Dortmund trade fair continues to expand its global reach and merchandise depth.

PLUS: • James J. Fox Brings La Casa del Habano to Harrods

JOYA DE NICARAGUA AT 50

Nicaragua’s first cigar factory marked its fifth decade of operations this year. It’s weathered tough times in the past, but is stronger than ever today with a global reach.

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TPI 7

{ Retailing Spotlight}

PHOTOS: C.GARS LTD.

Turmeaus adds Norfolk Shop Parent firm C.Gars Ltd. also opens its second La Casa del Habano shop, in Knutsford-Chesire. » CONTRIBUTED REPORTS

ritish premium cigar distribu-

of this 202-year-old family-owned busi-

Rooms (jazz and tapas restaurant),

to r C .G ar s Ltd . G ro u p h as

ness, which is thought to be the larg-

and Turmeaus Late Hour Cigar Shop & Sampling Lounge in Liverpool.

completed its relocation and

est specialist tobacconist in the UK,

expansion to a new purpose-built cigar

said, “We are delighted to have com-

In addition, C.Gars Ltd. Group owns

and whisky retail premises and head-

pleted this substantial expansion with

the La Casa del Habano (LCDH) shop

quarters building in Norfolk, England.

our 14-strong team of sales, I.T., and

in Chester, and recently opened their

The Ship is a historic-listed building

marketing specialists now working in an

second LCDH franchise in Knutsford-

that has been sympathetically redevel-

ultra-modern environment together with

Cheshire, UK on the 24th of July, 2019.

oped into a magnificent C.Gars head-

the latest equipment at their disposal.

The premises consist of a cigar shop

quarters building.

“C.Gars sales growth has been

and walk in humidor with client lockers

The premises feature a superb

meteoric over the last few years and

on the ground floor and a comfortable

walk-in humidor with an extensive

the expansion will help us serve our

sampling lounge on the first floor. The

range of handmade premium cigars as

clients better and faster. I am delighted

full range of La Casa specialties includ-

well as a comfortable sampling lounge

that we have been able to support the

ing Coleccion Habanos books and

to try them out in the luxurious sur-

local economy by creating more new

limited edition humidors will be well

roundings of this building of character.

employment as well as a first class

represented.

The Turmeaus retail shop also features a whisky room with a compre-

retail cigar and whisky shop for our local retail clients.”

LCDH Knutsford will be managed by Turmeaus tobacconist-trained team

hensive range of the finest single malt

Turmeaus specialist cigar shops are

Andrew, Liz, and Sandra under the

whisky, a pipe room filled with one of

located in Norfolk, Chester, Liverpool,

guidance of Sara and Calum (Master of

the largest ranges in the UK and a shop

London-Mayfair, and Knutsford. C.Gars

Cigars) from LCDH Chester.

full of splendid tobaccos.

Ltd also owns the Turmeaus Specialist

Mitchell Orchant, Managing Director TPI 8

Q2 2019

Whisky Shop in Chester; Puffin’

Turmeaus Norfolk, clockwise from top left: lounge, walk-in humidor, the whiskey room, sales floor area.

papers

booklets

Weâ&#x20AC;&#x2DC;ll get you rolling. Visit us at InterTabac, 20-22 September 2019 Messe Dortmund, Stand number 5.C20

{Retailing Spotlight}

C.Gars Ltd.’s new La Casa del Habano Knutsford.

enable us to have additional availability of La Casa specialties to satisfy our customers’ insatiable demand for the finest handmade cigars in the world.” Orchant added that he expects to open more LCDH shops in the future. The company welcomed Yadira Bulnes, Corporate Director of Hunters & Frankau, and Guillermo Parera, Cuban Press and Culture Counselor, as guests of honor to celebrate the opening, while C.Gars Ltd President Ron Morrison undertook the ceremonial ribbon cutting. C.Gars Ltd was launched in 1997 and is the largest specialist cigar merchant in the UK. This family business sells “Opening a second La Casa del Habano is very import-

premium cigars and related goods from its website, 24/7, every

ant to our group and allows us to continue our substantial

day of the year. C.Gars Ltd owns and operates specialist cigar

growth in Havana cigars sales,” explained Orchant. “It will

shops in the UK and has an associate company in Ireland. TPI

El Septimo Launches Cigar Lounges in Portugal, France

an immersive experience when they visit

Luxury lounges offer exclusive amenities at Younan Collection hotels. » CONTRIBUTED REPORTS

housing over 100,000 of the world’s rar-

Premium cigar maker El Septimo

château, rebuilt as a 5-star hotel with

the luxury lifestyle. Unlike traditional cigar

G eneva, S A , has announced the

a golf course and spa, located in the

retail outlets and lounges, we provide a

opening of the first El Septimo Cigar

Loire Valley. Both hotels are part of the

unique and exclusive experience, as each

Lounges at two Younan Collection

growing luxury brand La Grande Maison

member of our staff is trained to provide

luxur y hotels : Malibu Foz Resor t

Younan Collection.

5-star luxury service for every guest.”

in Portugal, and Alexandra Palace in Mazières-en-Gâtine, France.

our hotels. It begins with the ideal location, exquisitely designed interiors, gourmet dining experiences, and grand cellars est wines. We are introducing El Septimo Cigar Lounges as a further expression of

Zaya S. Younan, Chairman & CEO of

The lounges are the first of their kind,

Younan Company and Younan Collection,

being the only locations in the world to

Malibu Foz is a 4-star beach resort,

addressed the growing interest in “expe-

offer all 38 blends of El Septimo Cigars.

located in the heart of Figueira da

riential luxury” by travelers worldwide.

With such a wide varieties from which to

Foz—a lush, historic beach community

“We work hard to create an exceptional

choose, El Septimo provides an assort-

in central Portugal. Alexandra Palace is

environment that is second-to-none. Our

ment for premium cigar lovers, both men

a newly restored 17th century French

research has shown that guests desire

and women, ranging in aroma, strength,

TPI 10

Q2 2019

{Retailing Spotlight} Foz, guests have the option to smoke an El Septimo Cigar while lounging in private cabanas poolside or in the resort’s cinema theater where cuisine from the new Mensa Italian Restaurant and a full array of top-shelf liquor and wine can be enjoyed. Inside the cozy and lavish lounge, guests enjoy a state-of-the-art ventilation system and gazing at the stars through a retractable glass ceiling. The El Septimo Cigar Lounge inside Alexandra Palace features stunning décor nestled inside the centuries-old wine and cognac cellar, epitomizing the romantic and historic ambiance of the 17th century French château. Guests are offered private tastings to pair the world’s rarest cognacs and wines with the perfect El Septimo Cigar in the 100,000 bottle cellar. Visitors can further enjoy the exclusive amenities of the 5-star hotel El Septimo Cigar Lounge at Alexandra Palace, Mazières-en-Gâtine, France.

including tennis courts, on-demand spa services, Daniel’s—

gauge, flavor, and combustion. Guests will be able to purchase

its gastronomic restaurant—and an impressive 18-hole golf

a range of El Septimo premium cigar accessories by the end

course, providing a glimpse into the “castle lifestyle.”

of 2019, sold exclusively at El Septimo Lounges. The lounges

El Septimo cigars are premium, hand-rolled puros with

are open to both guests and the public, and will offer exclusive

fillers made of Costa Rican leaf. The cigars are rolled using

monthly and annual memberships.

the traditional Cuban entubar technique, which creates an

Not only has El Septimo reinvented how a premium cigar

incredibly dense, slow burning cigar that draws incredibly

should be made, but it has redesigned smoking one to be an

easy and captures all of the blend’s optimal flavors. The

exclusive, all-encompassing, luxurious experience. At Malibu

tobacco is aged anywhere from 5 to 15 years, allowing the oils and flavors to develop while leaving behind an unusually rich and creamy smoke. El Septimo has put significant resources into market research, testing, and blending processes while utilizing its old-world techniques to mirror the process of aging and blending fine wine. The Younan Collection will be opening more El Septimo Cigar Lounges in strategic locations worldwide by the end of 2019, allowing customers be fully immersed in the 5-star service that exemplifies Younan Collection hotels. The Younan Company is a global private equity firm that acquires and manages various assets and companies in the luxury consumer space, seeking to build a portfolio of luxury products and properties, and lifestyle companies and services. The company is recognized as a global luxury brand with more than $1.2 billion in assets under management through its subsidiaries Younan Properties and La Grande Maison Younan Collection. The Younan Collection owns and manages luxury hotels and resorts in France, including Château de Beauvois, Hôtel Saint-Martin, Château Le Prieuré, Alexandra Palace, Château de Vaugouard, and Château de la Perrière, premium cigar maker El Septimo Geneva SA; Golf des Forges, Golf du Petit Chêne, Golf d’Avrillé, and Golf de Vaugouard ; two vineyards in Saint-Emilion, including Château la Croix Younan, and Château La Garelle, and MPA Studio de

Visit us at: Hall 4, Stand E12 TPI 12

Q2 2019

Création in Paris. It recently acquired its first beach resort, Malibu Foz Hotel and Resort in Figueira da Foz, Portugal. TPI

{ Tradefair Preview} Strategic Development of the Trade Fair Location T he new N or th Entrance to the Dortmund Exhibition Centre was inaugurated on 27 March, with 400 invited guests. Ullrich Sierau, Lord Mayor of D or tmund, and Heinz - Herber t Dustmann, President of the Dortmund Chamber of Commerce and Industry, extended their congratulations and spoke words of welcome. The event was moderated under the ‘Fit for the Future’ motto by Heiko Wasser, sports journalist and long -time Formula 1 commentator. “This building is a hub of Dor tmund’s strategic develop ment as trade fair location,” explained

Intertabac 2019:

Sabine Loos, CEO of Westfalenhallen

The Entire World of Next Generation Products

Dortmund GmbH. The inauguration of

InterTabac, the world’s flagship tobacco trade fair, presents major market players and new exhibitors in the NGP segment in 2019. » STAFF REPORT

Westfalenhallen Group, a new hall num-

the entrance to the exhibition site is supported by a new Corporate Design and a modified corporate logo, a change in the company names of the bering system, and new signage in the exhibition halls. “The new, transparent 4,500 sqm

ext Generation Products (NGP)

will showcase their Icos, My Blue, Vype,

entrance hall to the Westfalenhallen

are an InterTabac segment that

and Logic Pro products on their exhibi-

exhibition site is an eye-catcher that

has significantly grown over the

tion stands.

proves Dortmund to be a modern

past few years. NGP exhibitors now oc-

Significantly more than half of the

exhibition and convention location.

cupy the Westfalenhalle event arena and

NGP-only exhibitors come from abroad

Dortmund and the Westfalenhallen

Halls 1 and 2 of the Dortmund Exhibition

and confirm the international importance

Group present themselves in an attrac-

Centre—and this NGP-focused area even

of InterTabac. For example, ELDA from

tive light with this investment in the

has its own access via the main entrance

Croatia will exhibit at InterTabac 2019.

millions. The face lift of the Dortmund

of the Westfalenhalle event arena. Both

Juul from Hamburg is not only one

major market players and new exhibitors

of the major players at the trade fair but

will present themselves again this year

will also celebrate its exhibition premiere

Dustmann summed it up from a

from 20 to 22 September at the world’s

in Dortmund. Other first-time exhibi-

regional business point of view: “The

largest trade fair for tobacco products and

tors this year include: Skey Europe from

Dortmund Exhibition Centre is an indis-

smoking accessories.

Exhibition Centre shines far beyond the region,” said Sierau.

Aachen, Integral (Bugatti) from Ratingen

pensable and necessary forum for local

In 2019, the well-known exhibitors

and KT&G Corporation from Daejeon,

businesses and allows new business

in the next generation product segment

Korea, and Purilum from Greenville, USA.

contacts to be established and existing

include InnoCigs and Juul Labs Germany

NGP offerings are supplemented by

ones to be maintained. New ideas and

from Hamburg, JT International Germany

classic tobacco products in Halls 4 to 7,

innovations are presented and products

from Cologne, Vape Dinner Lady from

a shisha focus area in Hall 8 and a part

are promoted. And that among compa-

Herzberg and Zazo from Euskirchen. Also

of Hall 6, and InterSupply, the trade fair

nies from the region and such compa-

interesting for people interested in NGP:

for the production of tobacco goods and

nies worldwide. That makes Dortmund

Philip Morris, Reemtsma, BAT and JTI

e-cigarettes in Hall 3.

an important trade fair location. In

TPI 14

Q2 2019

times of advancing digitalization and changing communication behavior, companies and start-up businesses need such modern marketplaces. All these advantages are offered by the Dortmund Exhibition Centre.” Loos explained the rationale and purpose of the modernization project. “With the new North entrance to the exhibition site, the new visitor passageway, and the converted exhibition forecourt, we have reached a milestone in making the location even more attractive and fit for continued competitiveness,” he said. We fulfill the expectations of modern organizers, exhibitors and visitors by offering more services and contemporary design. Trade fairs with visitor registration will particularly benefit. We also convey a strong image to the increasing number of international exhibitors and visitors.” The new entrance provides many improvements for visitors, exhibitors and organizers including uniform, barrier-free visitor routing from the foyer into all exhibition and event halls; contemporary and quick visitor management through modern technology; additional catering areas and conference rooms; separate exhibitor admission and full service exhibitor areas; and new shipping and logistics office including customs clearance.

New Company Names The project to modernize the facility’s infrastructure has been supported by another development: a change in the company names of the Westfalenhallen Group that took effect on 1 April. The exhibition centre’s company is now called Messe Dortmund GmbH; KHC Westfalenhallen GmbH has been renamed to Kongress Dortmund GmbH; and the event centre bears the name of Westfalenhalle GmbH, to stand out better. In addition, the numbering of adjacent halls now starts with 1 and hall numbers 3A and 3B no longer exist. “That is how we strengthen the operational presence of our business portfolio,” said Loos. “The new names are unambiguous and common.” Modernized corporate logos and new corporate designs also support the renaming effort.

TPI Tobacco Products International

TPI 15

{Brand News} In recent years, the rolling papers market has been evolving more and more

Toscano Cigars a Big Hit in Turkey

towards organic, biodegradable and natural products. OCB has responded by

A little over a year ago, Manifatture

OCB Rolling Papers Keep Innovating focusing on unbleached papers. OCB Virgin papers are very

Sigaro Toscano (MST) was the first

thin, slow-burning, smooth, naturally brown-hued, and come

foreign cigar company to obtain a

in all sizes and versions. OCB has updated the whole design

license to import its products—Italian-

of the OCB Virgin range this year to offer a more modern and

made Toscano and Toscanello cigars—

impactful look.

into Turkey, following ten years of

OCB has also launched the Craft booklet: its paper is made of

continuous and patient efforts to

unbleached organic hemp and offers the same burning

obtain the necessary permits from

and smoking features as the popular “green booklets”

Turkey’s rigorous State Monopoly.

in UK and Anglo-Saxon markets (semi-combustible, medium weight, cut corners). OCB continues to develop a vari-

During their short time on the Turkish market, Toscano cigars jumped to the top of

ety of eco-friendly products, having

MST’s exports, overtaking

launched the OCB eco paper filters,

Spain, which had been an

which biodegrade much faster than

unchallenged stronghold.

do acetate ones. To reduce envi-

Likewise, Istanbul’s Atarturk

ronmental impact, the paper fibers are

airport is now the top-selling

unbleached and the components are FSC certified. Once again, OCB focuses on the new trends towards more ecological products that smokers of additive-free tobac-

airport for Toscanos, overtaking Fiumicino airport. While Toscanos had not been previously sold domestically in Turkey,

cos look for. This year, OCB has also updated the design of the whole OCB filters range, to make it simpler and more modern. “This new design is the result of a global reflection on our OCB ranges, that

travelers passing through the country had been able to purchase them at duty free outlets or border shops in neighboring countries, including

we would like to be more impactful and

Iran and Iraq, helping establish the

more readable at the same time,” said the

groundwork for its eventual import.

company in a statement.

“Turkey is a country very similar

Republic Technologies, Perpignan, France,

to ours as far as tastes and aromas,”

Web: republic-technologies.com, ocb.net.

explains Flavien Vergoni, MST Export Manager. “And just like in Italy, dark, rich

Peterson of Dublin’s Limited Edition Special Reserve 2019 Pipe Tobacco

tobacco is preferred.” Vergoni notes that

Peterson of Dublin’s Special Reserve 2019 pipe tobacco is a mixture of golden Virginia

shisha—a type of water pipe widely

tobaccos from South America and Africa, combined with Black Cavendish and

enjoyed throughout Turkey—and no

well-matured Burley. It is enhanced with the sweet

doubt a factor in Toscano’s rapid adop-

and bitter flavors of rich coffee and chocolate, with

tion in the Turkish market.

earthy and nutty notes delivering a creamy smoke.

the typical aromas of Toscano cigars are very similar to those given off by

The top seller is the Toscanello

This year’s decadent edition of the annual limited

Aroma Caffè, followed by the flavored

edition release is presented in a ready-rubbed cut

Vanilla, Grappa, and Toscano Classico.

for immediate smoking. Supplied in a 100g tins.

Manifatture Sigaro Toscano, Rome,

Scandinavian Tobacco Group, Ltd., Denmark.

Italy, Web: manifatturesigarotoscano.it.

TPI 16

Q2 2019

When was the last time you experienced something for the first time? VISIT US AT:

Intertabak booth #4.B18

DISCOVER EXCEPTIONAL TOBACCOS AGED TO PERFECTION

Born from passionate curiosity, Balmoral invites you to discover the optimal balance of sophisticated complexity and smoothness. Each meticulously crafted, extensively aged Añejo XO cigar blend is the result of a relentless global search for the top 5% of select premium tobaccos available, including our exclusive, signature Brazilian Mata Norte. Crowned with a shade-grown wrapper from the Connecticut River Valley, Balmoral Añejo XO Connecticut provides a luxuriously creamy experience that embraces your palate with complex notes of vanilla, toasted caramel and white pepper that ﬁnish with a smooth, underlying natural sweetness.

“Passionate curiosity is essential to discovering and enjoying the best experiences in life.”

BALMORALCIGARS.COM

{Brand News}

Royal Agio Cigars Starts Rollout of San Pedro de Macorís Nicaragua in Key European Markets As a follow-up to the launch of the San Pedro de Macorís brand releases (Ecuador and Brazil blends) in 2018, Royal Agio Cigars has started sales of the new San Pedro de Macorís Nicaragua in several European markets. The new blend brings additional, complex variety to the San Pedro de Macorís value premium brand. Named after the hard-working town of San Pedro de Macorís, Dominican Republic—home of Royal Agio’s handmade cigar factory—these boutique handmade cigars inherently represent a “vibrant, local culture.” traordinary cigar at a reasonable, everyday price.” Each

Shiro All-White Nicotine Pouches

cigar is blended with a high-grade wrapper and binder with original Cuban seed Piloto

“All white” nicotine portions continue

Ligero tobacco filler to ensure a complex and distinct premium cigar experience. The

to capture the interest of consumers,

new blend is finished with a Nicaraguan Habano wrapper, providing a creamy and me-

blending natural plant cellulose and

dium-bodied experience with complex notes of rich cedar, dark chocolate and espresso

lower tobacco content in an all-white

beans, with subtle nuances of baking spices. Each blend is offered in 20-count boxes in

pouch that is whiter than the typical

three vitolas: Perla (4 1/8 x 40) Corona (5 7/8 x 42), and Robusto (5 1/8 x 52).

“white portion” products.

The brand is the result of a “pursuit to craft an ex-

Royal Agio Cigars, Duizel, The Netherlands, Web: agiocigars.com.

AG Snus of Denmark has taken the concept one step further with an entirely tobacco-free nicotine pouch

Habanos Extends Añejados Series with Romeo y Julieta Churchill Añejados Tubos

product named after the Japanese

Habanos, S.A. has released the sixth entry in its Añejados special production series,

ject to the EU snus ban—is entirely

the Romeo y Julieta Churchill Tubos. The new launch represents the first time since

white before use, and remains white

debuting the Añejados in 2014 that the company has presented an already-existing

during and after use. The slim format

vitola as part of the Añejados special production portfolio.

pouches are made of pure plant fiber.

Añejados are produced in limited quantities and feature tobaccos that have undergone a 10-year aging process to achieve

word for white—Shiro. The product—which is not sub-

Two variants are offered. Shiro All White Slim Fresh Mint

unique complexities without sacrificing their flavor or aroma.

has a rich flavor of mint, sweetness

Through the natural aging process, the cigar has become “round-

from peppermint, and freshness

er and mellower to the palate, getting touches of wood taste

from spearmint, delivering a balanced

thanks to the years of rest with the cedar protecting it,” accord-

mint taste. These portions contain

ing to Habanos.

6mg of nicotine per pouch.

The 47 ring gauge by 178 mm long Churchill vitola—one of the most appreciated,

Shiro All White Cool Mint

emblematic, and well-known within the brand—offers Habano enthusiasts a medium

Strong has a “cool feeling of mint

ring gauge format with medium flavor.

“and a “real fresh taste,” according to

The cigars are double-banded with a secondary ring bearing the legend “Añejados”

the manufacturer, thanks to the com-

and are presented in screw-cap brushed aluminum tubes in 25 unit boxes, which

bination of spearmint and menthol,

include a vitolina (insert card) describing the concept. On the bottom of the box

with 10mg of nicotine per pouch.

appears the date when the Habanos were made and can be verified. The entire box

Both offerings are presented in 12

is presented in a two-piece protective case. Romeo y Julieta Churchills Añejados

gm cans that contain 24 portions.

Tubos are available to all Habanos S.A. points of sales globally.

AG Snus, Assens, Denmark, Email:

Habanos S.A., Havana, Cuba, Web: habanos.com.

info@agsnus.com, Web: agsnus.com.

TPI 18

Q2 2019

{Showcase} Triple Flame Quasar Table Lighter from Colibri The Quasar Table Lighter is a triple-jet “pyramid” flame lighter with embedded ignition. This newest addition to Colibri’s Quasar series completes the Quasar tabletop set, and is a perfect match with the Quasar Table Cutter and the Quasar Ashtray. With fast single-action retracting doors, the refillable butane lighter provides a steady flame in Colibri’s signature Quasar design. The lighter’s metallic pyramid body highlights its elegant ansturdy functionality, and it

Elie Bleu’s Cuba Flag Leather Cigar Cases

includes non-slip rubber foot pads that will keep the lighter firmly placed on coffee

Elie Bleu has rolled out a new cigar case

table or desk without scratching the surface. It is available in a choice of Black,

design, Cuba Flag, in two different size

Silver, Gunmetal, or Red finishes, and includes a gift box and two-year warranty.

models. They are made in the great tradi-

Colibri, New York, N.Y., U.S.A., Email: sales@colibri.com. Web: colibri.com.

tion of leather goods, but designed to pro-

gular format alongside its

tect modern (larger) size cigars that “rarely have a suitable case,” notes the French

S.T. Dupont by The Row: An American Luxury Fashion Design House Lighter Collaboration

manufacturer. The close fit between the

S.T. Dupont by The Row is a lighter series collaboration between The Row—the

perfect seal to retain proper moisture.

Los Angeles-based luxury fashion design house established in 2006 by actresses

two nesting halves of each case enables easy opening and closing, yet provides a These cases have been made entirely

Ashley and Mary Kate Olsen—and the

by hand with the best skins that can

French luxury goods house.

be selected and feature a flag design

Three different drawings designed by the Olsen twins (Horn, Eye, and

printed on genuine leather, striking white stitching, and vegetal leather lining.

Sun) have been carefully reproduced

The two-cigar case is designed to

to create this unique and special col-

accommodate two Sublimes Behike 56

lection, interpreted on two different

El Septimo E2 Pyramides and has a €384

series of S.T. Dupont lighters.

suggested retail price, while the three-

The classic Slim 7 blue jet flame

cigar case accommodates three Sublimes

lighters, made of chrome, feature vibrant colors and feature ignition levers

Behike 56 El Septimo E2 Pyramides and

engraved with both the ST Dupont signature as well as The Row logo. The units

has a €495 suggested retail price.

measure 3,7cm wide by 6,7cm tall by 0,7cm thick and weigh .045kg. Suggested

Elie Bleu S.A., Gennevilliers, France,

retail price, €$305 each.

Web: eliebleu.fr.

The soft flame Linge 2 lighters feature palladium finishes, multicolor lacquer, the ST Dupont logo engraved on top, and The Row logo engraved on the bottom. The units measure 3,7cm wide by 6,2cm tall by 1,1cm thick; and weigh .12kg. Suggested retail price, €$2,490 each. S.T. Dupont, Paris France, Web: st-dupont.com.

TPI 20

Q2 2019

Elie Bleu is also offering the very limited edition (only 66 numbered units) 110-cigar Motorbike Humidor, inspired by U.S.A. Route 66, made from redgum with motorbike expressed in marquetery. Includes two humidification systems and a hygrometer; suggested retail price 3,616 euros.