Tobacco International - June 2019

Page 10

TI DIGEST

A new oral nicotine pouch product, on! is derived from tobacco.

UNITED STATES Gets It on! Altria Buys Oral Nicotine Pouch Product RICHMOND , VA .—Altria Group has agreed with the shareholders of Switzerland-based Burger Söhne Holding AG to acquire 80 percent ownership of certain companies of the Burger Group that will commercialize on!, an oral tobacco-derived nicotine (TDN) pouch product. “We’re excited to add on! to our companies’ terrific non-combustible portfolio,” said Howard Willard, Altria’s Chairman and Chief Executive Officer. “This acquisition will add another non-combustible product to our portfolio in what we believe is a high-potential, rapidly-developing category.” Upon closing, Altria will invest $372 million for an 80 percent ownership interest. Altria expects to complete the transaction in the second half of 2019, subject to customary closing conditions. It will finance the transaction with available cash. Altria will distribute on! across the United States in advance of the transaction closing, which is expected to allow Altria to quickly expand retail distribution. The on! portfolio consists of seven flavors and five nicotine strengths for a total of 35 SKUs. It is currently available in limited distribution in several thousand U.S. retail outlets, as well as in Sweden and Japan. It is also sold via e-commerce. “We’re excited to put our resources behind on! and participate in what we expect to be a fast-growing category,” said Allison Bolyard, Senior Director and General Manager of Helix, Altria’s new subsidiary that will be the parent company of the Burger Group subsidiaries currently manufacturing and selling on! “Combining our deep understanding of adult tobacco consumers and Altria’s best-in-class sales and distribution infrastructure, we expect to drive the on! brand toward sustainable, long-term leadership.”

UNITED ARAB EMIRATES For Displaying Print Finishing Products, World Tobacco Shone DUBAI—The World Tobacco Middle East Dubai in April was a “huge success,” said Daniel Lustenberger, Senior Area Manager Marketing & Sales for Web-Fed Solutions, Bobst Mex SA., whose company exhibited there. “It allowed BOBST and its partners to demonstrate how recognized and re-

quested trends for packaging across the tobacco industry are being met by innovative finishing techniques, coatings and packaging technologies,” he said. It helped that BOBST, a leading supplier of equipment, was able to exhibit alongside partners IST Metz GmbH (UV technology) and Schmid R hy ner AG (U V a nd water-based coat i ngs). T he sha red ex h ibit ion stand enabled customers to explore

10 TOBACCO INTERNATIONAL JUNE 2019

the entire printing spectrum for tobacco packaging, from printing to coating and drying, through the latest UV technology, up to finishing. Volker Selg, head of sales Web at IST Metz, said, “Providing a qualified and full picture of needed technology for the printing, the curing and the impressive opportunities created a lot of attention.” BOBST, a leading supplier of equipment and services to packaging and label manufacturers in the folding carton, corrugated board and flexible materials industries, also offers a range of market gravure printing technologies to meet key trends in the tobacco market and add competitive advantage, including Lemanic Riviera ILS®. Featuring 30 percent shorter web path than conventional presses and the ILS (Intelligent Line Shaft) solution, the gravure printing press can print challenging graphic designs on the widest variety of substrates. Special effects such as soft touch, matt varnishes and tactile lacquers are still prominent in tobacco packaging, said Jakob Rohner, CEO Schmid Rhyner AG. “Silver, such as our Silver Polar, is rising in demand. The perfect combination of quality infrastructure and quality consumables will make the difference in the end.” More companies are looking at the attractive effects of replacing metallized board, not only for economic reasons, but also to improve the overall CO2 footprint by replacing laminated boards with white boards. BOBST and its partners are promoting sustainable solutions through printing of high gloss silver. BOBST Lemanic Riviera ILS provides up to 15 color-printing, hybrid-printing technologies and double-sleeve-embossing units. Lemanic Riviera ILS is the flagship of printing and in-line converting technology for the tobacco and general folding carton market segments of packaging production.


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