Tobacco International - October/November 2019 • Tobacco Products International - Quarter 3, 2019 by Tobacco International magazine

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The authority on the tobacco industry since 1886 October/ November 2019

The Spotlight is on the EU

WHY BRITAINâ&#x20AC;&#x2122;S NEW PRIME MINISTER OPPOSES INCREASED TOBACCO TAXES

TRADITIONAL METHODS IMPROVE THE AGRONOMY OF INDIAN LEAF.

THE CROSSROADS THAT NEXT-GENERATION PRODUCTS MUST CROSS

A 13-POINT STRATEGY TO ADVANCE NGPs

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TI TABLE OF CONTENTS 18

A LOCKWOOD PUBLICATION

tobaccointernational.com

The authority on the tobacco industry since 1886 October/ November 2019

The Spotlight is on the EU

WHY BRITAIN’S NEW PRIME MINISTER OPPOSES INCREASED TOBACCO TAXES

The Crossroads Facing Next Generation Products. And why we must find a way to overcome it. Staff Report

A 13-Point Strategy to Advance Next Generation Products. Needed: A unified, fact-based conversation with a consistent and accurate message. Provided by Imperial Brands

FEATURES 18

Britain’s New Prime Minister Boris Johnson Opposes Increased Tobacco Taxes—And almost everything else (except Brexit). By Bob Crew

How Traditional Methods Are Improving the Agronomy of Indian Leaf Production. Which just shows that looking back can help you move forward. By Sunitha Kolaventy

The Austerity of European Union Tobacco Markets. The large disparity in retail cigarette pricing is a problem. By Iqbal Lampat

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TRADITIONAL METHODS IMPROVE THE AGRONOMY OF INDIAN LEAF.

THE CROSSROADS THAT NEXT-GENERATION PRODUCTS MUST CROSS

A 13-POINT STRATEGY TO ADVANCE NGPs

ON THE COVER The media takes aim at Jean-Claude Juncker, President of the European Commission, during a plenary session at the union’s parliamentary building in Strasbourg, France. Photo: European Union 2019

DEPARTMENTS 8

Editorial

10 TI Digest 38 Leaf News 44 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 EU, NGPs and Year Round Cover Crops

Christopher Bickers PRODUCTION COORDINATOR

or better or worse, the European Union has been much in the spotlight recently, and tobacco has certainly been partly in the glare. Regular Correspondent Iqbal Lampat describes on page 20 how the current position of most EU tobacco markets has been one of austerity. But there is a large disparity in retail cigarette pricing from one market to another, and it is becoming a problem. One of the EU’s biggest naysayers has got to be Britain’s Minister Boris Johnson. But on the bright side, he has been adamant in his opposition to increased tobacco taxes, saying he’s not interested in taxing poorer people on one of their relatively few pleasures, writes our London Correspondent Bob Crew, starting on page 16. One never knows how something like this is going to turn out, Bob speculates, but chances are that if and/or when he wins the next election, he will have a more lenient policy than before with regard to tobacco and cigarette companies. There is no doubt that the prospects for “Next Generation Products” have taken a downward turn. Richard Hill, Group Commercial Director for Vapor for Imperial Brands, explains on page 26 why the situation is deteriorating and manufacturers of NGPs are facing a crossroads. “We have one route, one opportunity, to potentially make a positive impact on public health, globally,” he says. See “The Next Generation Products crossroads, and why we must find a way to cross it.” And following Hill’s piece, you will be interested in the Imperial Brands proposes a 13-point belief system to advance next generation products and ensure consumer safety (page 28). In our last issue, we told you how the Tobacco Board of India has been using traditional agronomic techniques to develop lower “tech” but more productive methods to grow tobacco. Well, there is still more of that story to tell, and starting on page 34, Sunitha Kolaventy, Executive Director of the Indian Tobacco Board, tells a little more of it. One promising technique they’ve found: Keeping green cover crops on tobacco land year round. Here in the leaf-growing area of the United States, the news in early fall has been pretty dreary. The auction market for flue-cured tobacco (the first type to go on sale here) has been characterized by much lower prices than a year ago, and farmers are asking themselves if there will ever be any improvement. There have been a number of factors, but the loss of the China export market has to be number one. See Leaf News, page 36.

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

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Volume 19, No. 7 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 (January/February/March, April/May/June, July/August, 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 ©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.

8 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

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TI DIGEST CANADA Stay Granted in Canada Case

UNITED KINGDOM

toronto—The three major tobacco companies in Canada have received an order suspending legal proceedings against them—to last potentially till mid-March—in a case brought by several Canadian provinces. A stay of proceedings was first granted to the companies—JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd.— in March of this year to allow them to negotiate a settlement with their creditors, after the same firms lost an appeal in a multibillion-dollar class-action lawsuit in Quebec.

Imperial Brands CEO Steps Down

SWITZERLAND Philip Morris International Launches IQOS 3 DUO lausanne—A new version of Philip Morris International’s IQOS line of neatnot-burn product has been introduced. IQOS 3 DUO features the fastest and most powerful holder within the IQOS family and allows two consecutive uses without recharging the holder with a much faster holder charging time. IQOS 3 DUO will be available in Japan this month and subsequently rolled out in most of the markets

bristol—Alison Cooper and the Board of Imperial Brands have agreed that she will step down from her current role of Chief Executive officer and from the Board once a suitable successor is found. On behalf of the Board, Chairman Mark Williamson, said: “Alison has worked tirelessly and with great energy and passion during her 20 years with Imperial, nine of which have been as CEO, and the Board would like to thank her for the tremendous contribution she has made. “During her tenure as CEO, the business has been significantly simplified and reshaped to strengthen its long-term growth potential, and more than £10 billion in dividends has been returned to shareholders. I am pleased that Alison has committed to continue to lead the business until a successor is appointed, ensuring an orderly transition of responsibilities.” As CEO, Cooper has driven a sharper focus on Imperial’s strongest brands and markets, halving the number of cigarette brands to ensure a higher quality of growth. Asset Brands now account for two thirds of the Group’s tobacco net revenue, the company said. She also significantly enhanced Imperial’s presence in the highly profitable USA market with $7 billion of acquisition of brands and assets in 2014 and has been the architect of the launch and development of Imperial’s next generation products business. While the search for a successor continues, Cooper will focus on driving the performance of the business, including the asset divestment program, from which we expect to realize proceeds of up to £2 billion by May 2020. where IQOS is currently available by the end of 2019. “The launch of IQOS 3 DUO affirms our commitment to constantly and continuously investing in the development and commercialization of scientifically-substantiated products that can help the millions of adults who would otherwise continue to smoke to switch,” said Jacek Olczak, chief operating officer of PMI. “These ongoing product updates, innovations and developments are vital in our achievement of a smokefree future. Today approximately 8 million adults worldwide have switched to IQOS and abandoned cigarettes.” PMI has stated its aim that by 2025 at least 40 million smokers of PMI’s cigarettes who would otherwise continue to smoke will have switched to smoke-

10 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

free products, and that at least 30 percent of its total shipment volume will come from smoke-free products. On average, 70 percent of the smokers who switch to IQOS abandon cigarettes, which makes IQOS the most compelling smoke-free alternative today, said Olczak.

UNITED STATES Altria-PMI Scuttle Merger Plans richmond, va.—The proposal to merge Altria Group, Inc. with Philip Morris International Inc. is history. “While we believed the creation of a new merged company had the potential to create incremental revenue and cost synergies, we could not reach agreement,” said Howard Willard, Altria’s Chairman and Chief Executive Officer.

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TI DIGEST “We look forward to continuing our commercialization of IQOS in the U.S. under our existing arrangement.” “It is evident that significant investor pushback and the reality of holding a larger presence in the U.S. market fraught with risk around the FDA and weak volumes lead to the decision,” wrote analysts at Stifel Financial Corp. Altria and PMI have an agreement to advance together the iQOS heated tobacco product, and they plan to continue it.

Juul Recruits New Executives san francisco—K.C. Crosthwaite has been named by Juul Labs as CEO, following Kevin Burns’ decision to step down from that position. As Chief Growth Officer at Altria Group Inc., Crosthwaite oversaw the company’s expansion into alternatives to combustible c i g a re t te s a n d played a key role in the commercial and regulatory efforts related to the U.S. launch of IQOS. He also Crosthwaite served as an observer on Juul Labs’ board of directors. “I have long believed in a future where adult smokers overwhelmingly choose alternative products like Juul,” said Crosthwaite. “That has been this company’s mission since it was founded, and it has taken great strides in that direction.” Unfortunately, today that future is at risk due to unacceptable levels of youth usage and eroding public confidence in our industry. “Against that backdrop, we must strive to work with regulators, policymakers and other stakeholders, and earn the trust of the societies in which we operate. That includes inviting an open dialogue, listening to others and being responsive to their concerns.”

12 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

Also, Juul Labs has since hired Joe Murillo, the head of regulatory affairs at its co-owner Altria Group Inc., to take on a similar role at the e-cigarette maker. In his new role, Murillo will help guide the applications that Juul must submit by May to the U.S. Food and Drug Administration for any products it wants to keep on the market beyond that point, Crosthwaite said in an emailed statement. “The company is fully committed to supporting and complying with FDA’s final effective flavor policy and to working through the PMTA (premarket tobacco product application) process—a process Joe understands well and one he will help lead Juul Labs through,” Crosthwaite said in a statement. Altria’s Chairman and CEO Howard Willard seconded the motion to hire Crosthwaite. “K.C. is a proven industry leader who understands the importance of responsible business practices. This decision by Juul recognizes that this is a critical time for the company. I believe K.C.’s experience, discipline and dedication to making harm reduction an industry-wide reality will help Juul achieve its mission, while also urgently confronting and reversing underage use of vapor products.”

Universal Corp: Even Start on 2020 Leaf Sales Season richmond, va.—Universal Corp. has started off fiscal year 2020 with sales results in line with expectations. In his recent report on UC’s first quarter results George Freeman, CEO of UC, said the first fiscal quarter is a seasonally slow quarter, and volumes for the quarter were lower as fiscal year 2019 benefited from large carryover crop volumes, particularly in North America and Africa. “However, our overall volumes are similar to those in prior first fiscal quarters when we were not impacted by large carryover shipments,” said Free-

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“Our overall volumes are similar to those in prior first fiscal quarters when we were not impacted by large carryover shipments…our results benefited from lower selling, general and administrative expenses.” —George Freeman, CEO, Universal Corp. man. “In addition, our results benefited from lower selling, general and administrative expenses, primarily from more favorable currency variances.” The Other Regions segment operating loss of $3.8 million for the quarter ended June 30, 2019, was $1.8 million greater than the prior year’s first fiscal quarter operating loss of $2.0 million. In the first quarter of fiscal year 2020, benefits from higher carryover crop sales in Brazil and increased trading volumes in Asia were offset by lower results from Africa on lower carryover

crop sales and distributions from unconsolidated subsidiaries. Selling, general and administrative costs for the segment were lower in the quarter ended June 30, 2019, largely from favorable foreign currency comparisons, lower customer claim costs, and lower legal and professional expenses compared to the same period in the prior fiscal year. Revenues for the Other Regions segment of $202.1 million for the quarter ended June 30 were down $5.9 million compared to the same period last

year, as increases in sales revenues were offset by lower processing revenues, primarily in Europe, and reduced dividend income from unconsolidated affiliates. NORTH AMERICA

In North America, operating income for the North America segment for the first quarter was $0.9 million, down $8.1 million from the comparable prior year period. This was mainly on significantly lower carryover crop sales volumes. Carryover crop volumes in the United States were high in the quarter, as reduced transportation availability had delayed some shipments into that quarter, which would otherwise have shipped earlier in calendar year 2018. In addition, current crop tobacco volumes were down in Mexico due to later shipment timing this fiscal year compared to fiscal year 2019. Selling, general, and administrative costs for the North America segment were down

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TI DIGEST slightly, compared to the prior year’s first fiscal quarter. Revenues for this segment decreased by $87.9 million to $27.7 million for the quarter ended June 30, 2019, compared to the same period in the prior fiscal year, on the lower carryover crop sales volumes. OTHER TOBACCO

Other Tobacco Operations operating income of $10.5 million for the first quarter of fiscal year 2020 reflected an increase of $8.5 million, compared to operating income of $2.0 million for this segment in the same period last year. This was largely due to improved results from our dark tobacco operations on higher wrapper sales and lower costs. Despite increased sales volumes, results for ULTC’s oriental joint venture were down for its seasonally weak first fiscal quarter ended June 30, compared to the prior fiscal year on lower foreign currency remeasurement gains. However, selling, general, and administrative costs for the segment were down compared with the prior year, mainly due to favorable foreign currency comparisons. Revenues for this segment in the quarter ended June 30, increased by $11.0 million to $67.2 million on higher dark tobacco sales.

RA Applies to Market Vuse winston-salem, n.c.—British American Tobacco’s U.S. subsidiary, Reynolds American Inc., has submitted a Premarket Tobacco Product Application to the U.S. Food and Drug Administration (FDA) seeking orders authorizing the marketing of Vuse Electronic Nicotine Delivery Systems products. Vuse products offer a cartridge-based vapor system intended for adult tobacco consumers, and the application highlights key evidence demonstrating that the continued marketing of Vuse products is appropriate for the protection of the public health. Reynolds’ Vuse portfolio is well-positioned in the FDA’s PMTA process, in which all vapor products must be submitted for review by 11th May 2020, to remain on the market. Dr. James Figlar, Executive Vice President of Scientific and Regulatory Affairs at Reynolds, said, “This is an important first step in a long process for the millions of adult cigarette smokers who may want a legal alternative to combustible cigarettes, thus we look forward working with the agency as the process moves forward.”

General Snus Promoted to “Modified Risk” richmond, va—The U.S. Food & Drug Administration allowed Swedish Match (U.S. Division) the right to market eight varieties of General Snus, a smokeless, spitless tobacco product placed in the upper lip, as a less harmful alternative to cigarettes. “[The] decision is a huge accomplishment for public health in the U.S. and another step toward realizing our vision of a world without cigarettes,” said Gerry Roerty, Swedish Match Vice President and General Counsel. “There are nearly 35 million adult smokers in the U.S., all of which have been led to believe the only way to reduce tobacco risk is complete abstinence. We now have the opportunity and responsibility to inform cigarette users who cannot abstain that General Snus can be a risk-reducing alternative. .” FDA’s decision makes General Snus the first tobacco product to secure the modified risk designation in the U.S., classifying it as a tobacco product that is sold or distributed for use to reduce harm or the risk of tobacco-related disease associated with commercially marketed tobacco products. The FDA also cleared Swedish Match’s claim that using General Snus instead of cigarettes puts users at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema and chronic bronchitis.

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James Adhitya Setiawan, a marketing professional at Bukit Muria Jaya (BMJ) died suddenly at the age of 41 on August 17. James graduated from Maryville University of Saint Louis in 1998 and earned his master’s degree from the University of Melbourne in 2003. He joined BMJ in 2005. He was the mastermind behind BMJ’s creative campaign, well known in tobacco industry for the outstanding and interactive advertisement, exhibition concept, and corporate events.

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UNITED KINGDOM

Paris, France, July 24, 2019: Boris Johnson appears on cover page of the British newspaper The Times. Photo: hadrian/Bigstock.com

18 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

The Boris Johnson Factor He’s against the EU and against increased tobacco taxes— Britain’s maverick new prime minister is making quite a name for himself. By Bob Crew, London Correspondent ritain’s new Prime Minister, Boris Johnson—recently voted into power with an overwhelming majority within his political party to lead Britain out of the European Union (EU). He has succeeded Theresa May in the British Conservative Party, has declared that he is against taxes on smoking for health reasons and he reportedly has links to the tobacco industry Britain. A lobbying firm co-run by the man who headed Johnson’s leadership campaign for the Conservative Party—Mark Fullbrook—has been writing to local councils in Britain allegedly on behalf of a tobacco company there and before the announcement of planned new anti-smoking measures. That company is reportedly Philip Morris in the UK! Boris Johnson has vowed to get Britain out of the EU in the absence of a decent trade deal by the end of October 2019. At press time, he is refusing to smoke a pipe of peace with the EU on its latest proposals because they are unacceptable to him and the majority of Brexit voters in Britain who have voted to leave the EU. Prime Minister Johnson is also reportedly doing all he can to prevent taxes on tobacco smoking in the UK, saying that he is not interested in taxing poorer people on one of their relatively few pleasures.

Beer, Brexit and Britain! But it is not one of his pleasures. Johnson does not smoke, except for the occasional cigar at parties.

But he has made it abundantly clear that he is not against tobacco smoking for those who choose to smoke. Currently ahead in the polls with a possible election on the cards to determine the Brexit-EU issue once and for all, Boris Johnson is on a roll, notwithstanding the fact that he is accused of having financial links to the tobacco industry in the UK, which clearly is not much of a problem for British voters. It is a little-known fact that he has dual US and British nationality, having

es are that if and/or when he wins the next election, he will have a more lenient policy than before with regard to tobacco and cigarette companies. A Political Cowboy? For readers of this magazine, it may help to know the kind of politician it is who shows signs of being a friend of tobacco companies and smokers in the UK, the kind of guy and politics in question here, as he tells the EU to put its proposals in its pipe and smoke it! It helps to know the background and the political climate and mood in the UK at present. Britain’s right-wing Conservative Party is roughly akin to the US Republican Party (almost but not quite perhaps), whilst its opposition New Labor Party is roughly akin to the US Democratic Party (almost but not quite on account of New Labor being more but not much more left-wing these days than it used to be).

A lobbying firm co-run by the man who headed Johnson’s leadership campaign for the Conservative Party—Mark Fullbrook—has been writing to local councils in Britain allegedly on behalf of a tobacco company there and before the announcement of planned new anti-smoking measures. been born in New York (while his father worked there) and kept his passport while being educated in the UK at swanky Eton College and Cambridge University and then settled in a career and married there. He is a proud redwhite-and-blue Brit and a great fan of the late Winston Churchill about whom he has recently published a book. Boris Johnson is also accused of having fathered several children with different women out of wedlock, not that he chooses to comment about this! But he has made himself very clear about tobacco smoking, and the chanc-

Britain’s Lib-Dems are predictably somewhere in between these two not very extreme extremes, that are not very much different from each other anymore! I reported in an earlier issue of Tobacco International that Britain’s relatively new Brexit Party and its leader Nigel Farage were ahead in the polls. And they were at the time. But not so now. Boris Johnson has stood up to the EU in no uncertain manner and threatened to show it the door without a deal of any kind. He and his Brexiteers are eminently capable of doing that.

OCTOBER/NOVEMBER 2019 TOBACCO INTERNATIONAL

UNITED KINGDOM For these reasons—standing up to the EU and being prepared to walk away without a deal if necessary—Britain’s Conservative Party are no longer dead in the water or overtaken by the Brexit Party as the Conservatives were before Johnson became Prime Minister and put them back on track.

backing down (whilst at the same time looking for ways to sugar the pill in this game of political psychology). In short, he is on a roll now that he is ahead in the polls—if he doesn’t beat the EU in this month’s last-ditch negotiations, the signs are that he will go for an election and win it!

Britain’s Conservative Party are no longer dead in the water or overtaken by the Brexit Party as the Conservatives were before Johnson became Prime Minister and put them back on track. They are suddenly in demand again and now so comfortably ahead in the polls that New Labor and the Lib Dems are chickening out of Johnson’s challenge to have an election straight away in order to finally settle the EU issue once and for all in favor of Brexit. Pipe of Peace They are hoping that he will still have to smoke a pipe of peace with the EU, do an unconvincing compromise-deal, lose his credibility, and then lose an election to them later on for not delivering. But he is not showing any signs of backing down to the EU magazine. On the contrary, he is sticking to his guns, and expecting the EU to do the

Too much Boris? From their perspective, he was not only too inexperienced, dilettante and rich-kid aristo, but to add insult to injury, many did not like his personality either (a bit too posh but also brash, a bit too much of an unpredictable jack in the box not knowing his place, a bit too much of his own man instead of a team player, a bit too much of an ill-considered bungler, in short, a bit too Boris and too much of a one-off, a bit too much of a political cowboy, albeit a swanky one with a posh English accent!). Should Johnson’s Brexit Britain leave the EU without a deal, it will mean increased prices on cigarettes and

Quotes: Pure Boris For sure, Johnson will go down in British history as one of the most extraordinary and controversial political figures in modern times, a real character, who enjoys the good life with wine, women and a dance to the music of time. And let’s not forget the occasional cigar! Herein are a few notable quotes from Chairman Boris.

On The EU: Johnson argued that the past 2,000 years had seen failed attempts to recreate the ‘golden age’ of the Roman Empire: “Napoleon, Hitler, various people tried this out, and it ends tragically. The EU is an attempt to do this by different methods.”

20 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

booze between these two countries, and you’d think in view of all these frictions and tensions, that Boris might have become a chain smoker by now! Instead of which, he finds some spare time to work out in the gym (to keep his increasing weight down these days!), to run and jog (for the same purpose), and to do a bit of boxing as well as he attempts to punch his way out of the EU (metaphorically speaking!) There is no smoke without a fire. Britons will have to decide whether they consider him worthy or not. Current polls suggest that they do, no doubt because most voters regard his alleged sins as nothing more than a smokescreen for keeping them in the EU against their democratic rights! Place in History For sure, Johnson will go down in British history as one of the most extraordinary and controversial political figures in modern times, a real character, who enjoys the good life with wine, women and a dance to the music of time. And let’s not forget the occasional cigar! It’s all happening for him and his Brexit government in the UK, so watch this space for further reports on the outcome of all this.

On Eurosceptics: “I can hardly condemn Ukip [Nigel Farage and his acolytes] as a bunch of boss-eyed, foam-flecked euro hysterics, when I have been sometimes not far short of boss-eyed, foam-flecked hysteria myself.”

On Barack Obama: Commenting on a report that a bust of Winston Churchill had been removed from the White House, Johnson hypothesized that Obama had a bias against strong white leaders. “The part-Kenyan president [has an] ancestral dislike of the British empire—of which Churchill had been such a fervent defender.”

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The European Union Tobacco Markets

Austerity Defined Tackling a contentious problem: the large disparity in retail cigarette pricing. By Dr. Iqbal Lambat, CEO Star Agritech Intl. he European Union (EU) was established loosely after the Second World War by the six founding members—Belgium, France, Germany, Italy, Luxembourg and the Netherlands. That number was complemented in 1973 with the addition of Denmark, Ireland and the United Kingdom. Greece became the 10th member of the EU in 1981, with Spain and Portugal following five years later thereby creating the 12 Member European Union. This treaty provided the basis for a vast six-year program aimed at sorting out the problems with the free flow of trade across EU borders, thus creating

the “Single Market.” In 1993 the Single Market was completed with the “Four Freedoms” of movement of Goods, Services, People and Money freely across EU member borders. In 1995 the EU added three more new members, Austria, Finland and Sweden. A small village in Luxembourg gives its name to the ‘Schengen’ Agreements that gradually allowed people to travel without having their passports checked at the borders. The political divisions between East and West Europe were finally declared healed when no fewer than 10 new countries—Czech Republic, Cyprus, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia—

22 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

joined the EU in 2004, followed by two more—Bulgaria and Romania—in 2007. Over the last 12 years since then, the EU has undergone tumultuous times: the bankruptcy of Cyprus, the economic meltdown of Greece, the rise of populism in countries such as Holland, Hungary and Poland. And, at the time of writing this article, UK Prime Minister Boris Johnson is threatening to leave the EU with or without an agreement with the EU under what has become referenced broadly as BREXIT. What is transpiring in the European Union Cigarette and Tobacco markets and what does the future hold? The Continued Decline of EU Cigarette Markets Back in 2007, one would broadly refer to the EU bloc as a combined market of circa 725 Bn cigarettes of consumption. The five big +100 Bn stick markets of Germany, Spain, France, Italy and the UK accounted for slightly over 500 Bn

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EUROPEAN UNION TABLE 1

2018 EU CIGARETTE CONSUMPTION COUNTRY

MARKET SIZE

C&C %

Austria

14,48

6.40%

Belgium

8,78

3,70%

Bulgaria

13,93

5,90%

Croatia

5,91

2,10%

Cyprus

1,26

6,00%

Czech Republic 14,55

3,30%

Denmark

6,04

1,80%

Estonia

1,57

11,30%

Finland

4,81

12,90%

France

58,23

13,10%

Germany

90,73

4,60%

Greece

16,74

18,00%

Hungary

7,60

5,40%

Ireland

4,02

19,90%

Italy

72,40

4,80%

Latvia

2,28

21,10%

Lithuania

3,22

17,80%

Luxembourg

0,62

0,64%

Malta

0,58

13,50%

Netherlands

12,16

7,80%

Norway

2,99

16,70%

Poland

40,50

12,11%

Portugal

10,25

2,00%

Romania

26,99

15,40%

Slovakia

7,36

4,80%

Slovenia

3,29

10,60%

Spain

43,77

5,00%

Sweden

5,88

6,30%

Switzerland

10,29

1,40%

38,69

17,80%

of the 725 Bn or, observed differently, accounted for slightly less than 70% of total EU consumption. In 2018 total EU consumption of cigarettes was estimated at 530 Bn sticks of which Contraband and Counterfeit (C&C) accounted for 45 Bn sticks or 8.5% of all sticks consumed in the EU. The big 5 markets continue to remain the big 5 with a combined consumption of 303 Bn sticks or 57% of EU consumption in 2018 [See Table 1].

The formation of the EU bloc has brought together nations of high wealth and nations of low wealth (and soon nations of no wealth!). This has resulted in a large disparity in retail pricing and government taxation on cigarettes. Using the Marlboro brand as a benchmark, this brand retails for € 11.25 per pack of 20 in Norway (highest) compared to 2.55 per pack in Bulgaria. The problem this causes is that a large quantity of cigarettes, tax paid in their countries, will flow to countries where the re-sale of the brand can be achieved successfully at fifty percent of the official selling price. Looking at the Bulgaria to Norway prices indicated above, it would be fairly lucrative to buy Marlboros at € 2.55 tax paid in Bulgaria and sell these at half the going price in Norway of € 5.60 per pack generating a personal profit ratio of at least 120%. Easy money! [see Table 2]. Complicating this picture further are other non-EU countries located in Europe such as Russia, Serbia, etc. The same brand sells for 0.43 per pack in Belarus and 0.52 per pack in the Ukraine (one 20th of the price in Norway). These prices create widespread flows into the EU disrupting the official trade. While the new members of the EU have pledged to work towards reaching some form of retail price parity across the EU over the next few years, it will take some time before the Bulgarian Marlboro smoker will be prepared to pay 100% more as practiced in Italy or 350 % more as practiced in Norway. Apart from disparate retail pricing is the complication on cigarette excise tax among member states. Again, clearly the newer members of the EU club have significantly lower taxes than the old guard countries such as Ireland and the UK. As a lot of this trickles down to purchasing power parity and “like for like disposable income”, there would be huge uproars and revolutions if an attempt to equalize excise tax across the Union were to be attempted. Other factors driving down con-

24 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

sumption in the EU are the continued bans that affect the consumer. These boil down to decreasing smokers’ freedoms as more and more public spaces are declared smoke free. Bans are almost in place in all 28 EU countries in the workplace, bars, restaurants and now moving into public parks and beaches. The EU is ahead of many regions around the world in general by providing access to some sort of smoking area in most airports. This is to be viewed TABLE 2

SELECTIVE 2018 EU RETAIL PRICING: MARLBORO 20 COUNTRY

AVERAGE PRICE PER PACK

Austria

€ 4.76

Belgium

€ 5.88

Bulgaria

€ 2.55

Croatia

€ 3.05

Cyprus

€ 4.28

Czech Republic

€ 3.31

Denmark

€ 5.36

Estonia

€ 3.24

Finland

€ 6.12

France

€ 6.81

Germany

€ 5.64

Greece

€ 4.10

Hungary

€ 3.62

Ireland

€ 10.07

Italy

€ 4.78

Latvia

€ 3.03

Lithuania

€ 2.99

Luxembourg

€ 4.60

Malta

€ 5.25

Netherlands

€ 6.16

Norway

€ 11.25

Poland

€ 3.19

Portugal

€ 4.40

Romania

€ 3.31

Slovakia

€ 3.13

Slovenia

€ 3.51

Spain

€ 4.52

Sweden

€ 6.00

Switzerland

€ 7.72

€ 8.83

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EUROPEAN UNION positively given the large amount of time people spend in airports either before boarding or on connecting flights. Also, the low visibility of cigarettes in points of sale are encouraged by Governments as having the effect of deterrents to smoking. This is a false claim with unproven success. Finally, the threat of plain packaging seems to have become second or third fiddle on the agenda of EU regulators. Perhaps the results of Australia’s spectacular failure to curb smoking through plain packaging has been the cause of this hesitation by EU regulators. (Plain packaging was introduced in Australia in December 2012). Novel Nicotine Products (NNPs) While vaping is well introduced in the EU countries, it has failed to generate the expected traction. European authorities have combined their embrace of e-cigarettes with tougher regulations—restricting marketing to chil-

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dren, for example, and imposing lower limits on nicotine content—that have made the new devices more acceptable to health officials. Britain prohibits vaping companies from targeting teens. Real or fictitious characters that could appeal to youths are banned, as are depictions of e-cigarette users who appear to be under 25. The European Union also has lower limits on nicotine levels in e-cigarette fluid, permitting a maximum of 20 milligrams per milliliter, compared with 59 milligrams per milliliter in Juul Labs Inc.’s vape hits in the USA. In order to enter EU markets such as Britain, the U.S. company has had to dilute its nicotine liquids there. Norway is the only EU country to have a total ban on e-cigarettes. Other EU countries tightening up regulations on e-cigarette usage are Hungary, Finland, Greece, Cyprus, Estonia Slovenia and Portugal. The recent disclosure in the USA of several hundred e-cigarette smokers taken

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ill from using this product as well as several deaths attributable directly to e-cigarette consumption will serve to influence EU regulators on vaping products. HnB products have also seen little success in the EU. (It is reported that 90% of all PMI iQOS global sales volumes are in Japan!). Once the novelty factor has run its course, smokers return to combustion products. X-Generation Potent Finally, the X generation factor is more potent in the EU than elsewhere. Young adults want a cleaner lifestyle with less usage of alcohol and tobacco. Also, affordability plays a key role as prices of cigarettes are continuously on the rise. Over the past 12 years, the EU cigarette market has declined 27% or 2.25% per annum. At this rate of annual decline, the EU consumption would hit 386 Bn sticks by 2013, making the 28-country block smaller than the second largest cigarette market in the world—Indonesia.

NEXT GENERATION PRODUCTS Hon Lik, the Chinese pharmacist who invented the modern electronic cigarette.

The Current NGP Environment Seems to be

DETERIORATING Next Generation Products face a crossroads. The industry must find a way to chart the right course. Staff Reports t’s clear that the tobacco industry— its scientists, regulators and public health bodies—are at a crossroads, says Richard Hill, Group Commercial Director, Vapour, for Imperial Brands. “We have one route, one opportunity, to potentially make a positive impact on public health, globally, and that is through NGPs and in particular vaping products.”

“We feel strongly that the better path is one of potential harm reduction, managed effectively by regulators alongside responsible producers and retailers. This is the path that Imperial Brands champions. The current NGP environment seems to be deteriorating, says Hill, “and we are alarmed at the continuing talk of bans. We simply do not believe this is the answer. What we need is

“We are alarmed at the continuing talk of bans. We simply do not believe this is the answer. What we need is the right regulation in place and strong action taken against the irresponsible players in the industry, who are putting at risk the progress being made globally to provide smokers with alternatives to combustible cigarettes.” But there is another alternative route—one that fails to capitalize on that opportunity—one that risks undermining the trend of smokers moving away from combustible cigarettes.

the right regulation in place and strong action taken against the irresponsible players in the industry, who are putting at risk the progress being made globally to provide smokers with alternatives to

28 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

combustible cigarettes.” Reports linking respiratory illnesses and several deaths to the use of vaping products are deeply concerning. “But they are a stark reminder for us all, to recognize that consumer safety is of paramount importance.” Imperial Brands takes its responsibilities in this area extremely seriously and fully supports the FDA’s drive to ensure the safety of consumers who choose to use nicotine vaping products. “We also welcome the FDA’s focus on preventing youth access. No one wants to see young people smoking, vaping or using any other NGPs. At Imperial we are very clear that these products are for adult smokers only. “We also share the FDA’s concern that the abuse of marketing by some companies of vaping f lavors, could be attractive to young people,” says Hill. “We support any measure that prevents this abuse of flavors; because f lavors, maturely marketed, continue to play a critical role in helping smokers’ transition. In a worst-case scenario, we could even see ex-smokers returning to combustible tobacco if flavors were totally banned—that’s a really sobering thought. “Ever since we invented mass vaping technology through Hon Lik, the godRichard Hill, Group Commercial Director, Vapour, Imperial Brands.

father of e-cigarettes, we’ve been a pioneer of vaping, and we’re here for the long run through good times and bad.” For more on Imperial’s stance on vaping, see the following story.

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Imperial Brands Develops NGP “Belief System” Needed: A unified, fact-based conversation delivering a consistent and accurate message. Imperial takes a first step by developing a 13-point belief system to advance next generation products and ensure consumer safety Provided by Imperial Brands BELIEF 1: Product standards and science are of crucial importance We believe it’s crucial for adult smokers and vapers to trust the products they choose to use. There are currently too many irresponsible players in the market, particularly in the vaping space. This is damaging the category and must be addressed. In developing our NGPs, we are guided by comprehensive principles of design and quality, as well as strict manufacturing standards. We strongly believe that NGP standards need to rise significantly across the industry. Any manufacturer must be able to stand scientifically, behind their products and be able to demonstrate that they operate to the highest standards of product stewardship. We have over 300 scientists working on our Scientific Assessment Research Program; this program includes understanding: • how smokers use our Next Generation Products; • the chemical constituents of our NGPs and how levels compare to combustible tobacco products; • the effects of using our products on the human body in clinical assessments. This program forms part of our growing PMTA dossier which will be submitted to the FDA in the coming months. These types of assessments, and the teams of scientific experts required

to carry them out, are major financial commitments, and in our view they should be mandatory. We urge governments and regulators to play a key role in ensuring this aspiration becomes a reality to enable all of us in the industry to invest with confidence. BELIEF 2: NGPs are for adult smokers only We don’t target children; our marketing programs are focused solely on adult smokers and we are totally committed to enforcing and enhancing Youth Access Prevention measures. Specifically, in the USA, we have an end-to-end Youth Access Prevention program to ensure our products are responsibly designed, packaged, marketed and sold. And we insist our retail and on-line partners make stringent commitments to prevent underage access, which we enforce through compliance oversight. In our view, only companies committed to upholding the highest prevention standards for Youth Access & Youth Appeal should be allowed on the market. BELIEF 3: Knowledge and learning must be invested in and shared We believe it’s important to constantly improve our knowledge of the NGP categories. We focus on understanding long-term NGP use and encourage proactive, transparent intra-industry collaboration to address any data gaps. We believe policy should be based

30 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

on evidence, underpinned by good science and regulatory rigor. But we also recognize many NGPs are still evolving in scientific terms, and that long-term epidemiological data is something we must continue to pursue. We acknowledge that no NGP is entirely risk-free, although both our ongoing research, and the broader scientific evidence base, suggest NGPs are potentially a lot less harmful than combustible cigarettes. It’s so critical to be able to share knowledge and learnings; to enable credible conversations about the harm reduction potential of NGPs; and ensure appropriate regulation is implemented. This requires us to undertake the right scientific studies to better understand long term use, and to give everybody— regulators, public health bodies, the media and consumers—the opportunity to scrutinize the ensuing data. This will take time, but we are playing our part with multiple studies: pre-clinical, clinical and behavioral across our whole NGP portfolio, either already published or in the pipeline. BELIEF 4: Strong brands have an important role to play We know that brands matter to smokers, so NGPs must have: • brand values that resonate with smokers; • a narrative that relates to who they are and how they feel about smoking.

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NEXT GENERATION PRODUCTS Smokers trying blu can expect: • A quality product underpinned by leading-edge science with over 10 years’ experience as America’s original vaping brand. BELIEF 5: Smokers are not victims Many smokers so far have not made the decision to try NGPs and we must respect that. Taking the time to listen to smokers allows us really to understand their needs, and it enables us to develop effective strategies to help them define their own journeys in making a very personal choice to try an alternative to combustible cigarettes. We know that just shouting ‘Quit’ or ‘Switch’ at smokers is likely to have the opposite effect. BELIEF 6: Flavors attract adult smokers to the category They are important to the success of NGPs and a growing body of scientific research shows they play a fundamental role in attracting adult smokers to the category and keeping them there. Our own research, which includes the views of 20,000 adult vapers in the USA, shows that the adult smoker’s journey to vaping often begins with familiar flavors like tobacco and menthol. However, the vast majority later progress to other flavors. We simply cannot ignore the role that flavors play in attracting adult smokers to the category, but we need to ensure flavors are not marketed in a way that appeals to young people. In our view, flavor bans are really not the answer. Unintended consequences of bans include: • deterring smokers from trying vaping; or • forcing a vaper back into smoking. A ban on flavors can also lead to a growth in illicit trade, sub-standard and potentially dangerous counterfeit products that are not governed by any regulation.

As an industry, we should continue to work with regulators to co-develop guidelines on appropriate flavors that appeal to mature adult tastes, naming conventions, descriptors and associated marketing—all of which of course, must be complemented by initiatives and regulations that serve to prevent youth access. BELIEF 7: A wide portfolio will help attract adult smokers into the NGP category We are developing and expanding our NGP portfolio, which now includes vapor, oral tobacco and heated tobacco products.

BELIEF 8: Smokers need choice in their nicotine delivery For NGPs to fulfill their harm reduction potential they have to provide smokers with genuine nicotine satisfaction. In the USA, like other markets, there’s a range of nicotine levels available to suit individual smoker needs and we believe providing this choice is important. At the lower end of the scale, in the UK, Public Health England and the Royal College of Physicians have said the current EU cap of 20mg on nicotine may limit the effectiveness of vapor as a smoking alternative, particularly for heavier smokers. We support the UK Government reviewing this arbitrary cap post Brexit However, we don’t believe nicotine levels should be uncapped at the upper end; there should be a sufficient range to suit individual smoker needs—again, supported by science and the right regulatory framework.

32 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

BELIEF 9: We must ensure the affordability of the NGP proposition It is clear there has to be a strong value proposition to encourage smokers to try NGPs and there’s more work we, as an industry, can do to drive efficiencies and reduce production costs. However, legislators also have a role to play, and we urge them to resist the temptation to treat this new category as a ‘cash cow’ revenue generator to plug budgetary shortfalls. Steep retail price hikes will severely constrain the uptake of NGP use among smokers. We’ve seen this before in markets such as Italy, where a few years ago, a big increase in excise duty led to a substantial reduction in vapor sales and with it a rise in sales of combustible cigarettes. When this excise increase was reversed, vapor returned to growth and cigarette sales declined. We hope there are learnings here for other governments to take on board. BELIEF 10: We should be able to use NGPs freely Freedom and acceptance to use NGPs in public. In Japan, consumers can use NGP products in many public places, and this has undoubtedly contributed to a nationwide reduction in smoking. The UK government has recommended that transport providers and public places should treat combustible cigarettes and vaping products differently. BELIEF 11: There needs to be freedom to communicate and educate Freedom for the industry, public health bodies and others to communicate their potential benefits. There should also be the freedom to honestly communicate and educate smokers about the potential harm reduction benefits of what is still an evolving, and sometimes misunderstood, product category. We also have a duty to remind Vapers to be courte-

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NEXT GENERATION PRODUCTS ous and sensitive to those around them. Cloud chasing does not have a great reputation. We need consistent, accurate and proactive tobacco-harm-reduction communications from public health bodies, such as we’ve seen in the UK, where active public health campaigns communicate positive vapor messages. We believe this can—and should—serve as a “best practice” model for policy makers worldwide. BELIEF 12: Innovation must be fostered Recent advances in science and technology have provided us with the potential opportunity to facilitate tobacco harm reduction on an unprecedented global scale. True innovation never stops, and is underpinned by strong consumer insights and robust, fact-based science to validate harm reduction potential. For example, we are excited by

the potential of our connected device, which will empower smokers through real-time data—to enable their individual journeys, as well as the ability to lock out children from our products. We hope the regulators globally will embrace, support and foster innovation, quickly. BELIEF 13: We must achieve acceptance of NGPs’ potential for harm reduction Tobacco harm reduction is the critical, unifying concept with the potential to have a dramatic impact on global public health. We believe NGPs, and especially vaping products, have a significant role to play here. In the UK, for example, the incidence of smoking has fallen from 20.5 percent to 14 percent in the 10 years to 2018. In the USA, incidence has fallen to 13.4 percent over a similar period. In markets such as Thailand and Brazil,

34 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

where EVP is banned, smoking incidence has only declined by 1 percent and 2 percent respectively in the same period. Unfortunately, despite the strong evidence, the contribution NGPs can potentially make to tobacco harm reduction isn’t universally accepted, and a combination of mixed messages and misinformation means many smokers remain confused about the potential benefits of NGPs. If we as an industry are serious about global tobacco harm reduction, we must work together to drive unified, fact-based conversation which delivers a consistent and accurate message. This will ensure the company is better placed to meet ever-evolving consumer needs and deliver savings that can be reinvested in the growth of its portfolio of New Categories such as vapor, tobacco heating products and oral tobacco.

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INDIA Indian workers harvest a bountiful crop.

with very low seedling mortality. Most of the nurseries in the Northern Light Soil (NLS) region of Andhra Pradesh and almost all the nurseries in Karnataka are raised in poly trays which has helped in uniform crop stand as well as higher grade index.

Steps in the Elevation of Tobacco Culture in India A continuation of last month’s look at how traditional methods are improving the agronomy of Indian leaf production. By Sunitha Kolaventy, Executive Director, Indian Tobacco Board 65 Days Green Cover in Tobacco Cultivation A new concept has been initiated in India tobacco agriculture with the hope of furthering sustainable crop production, sequestration of carbon, and preventing soil degradation. The Tobacco Board of India is planning to begin a program of “365 days green cover” in tobacco farming. This concept will be implemented under a natural farming mode in low productive, drought-prone tobacco-growing villages. The immediate goal will be to improve the soil micro biome and soil organic carbon content. The basis of ‘365 days green cover’, a continuous sequence of crops like legumes, millets and pulses—all less input intensive than tobacco—will be grown over the course of the year. Cropping is sustained even under dry conditions by adopting ‘dry-sowing’ of green manure seed before onset of rains instead of conventional sowing after onset of rains.

This model sustains soil health and also facilitates regular income for the tobacco growers throughout the year, thus mitigating market risks and ensuring overall farmer profitability. Tobacco Board is making efforts to implement on a pilot basis year-round green cover in tobacco cultivation this year in Andhra Pradesh. Promotion of GreenTech Nurseries There is a movement to persuade growers to switch over to GreenTech Nurseries, which involves nursery raising of tobacco seedlings in a partially controlled environment using PVC trays with sterilized cocopeat medium, all in an environmentally friendly manner. This model of nursery raising has brought a drastic reduction in the cost of seedling production besides ensuring healthy, disease-free seedlings. This method also enables production of sturdy seedlings with good vigor which ultimately ensures a uniform crop stand

36 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

Good Agricultural Practices in Tobacco Cultivation The Tobacco Board of India with technical guidance of CTRI is consistently g efforts to promote Good Agricultural Practices in FCV tobacco as part of the Sustainable Tobacco Production program. Tobacco Board organizes regular awareness educational programs, training programs, workshops, study tours, and demonstrations for effective transfer of latest crop production technologies to the farmers. The extension staff of Tobacco Board regularly tours in the villages and provide necessary technical advice to the tobacco farmers. Residue-free Tobacco Production Dependence on chemical pesticides for pest control is endangering sustainability of farming owing to development of insecticide resistance to insect pests, annihilation of beneficial organisms, insect pest resurgence and environmental pollution. The increasing health concerns worldwide have also necessitated production of compliant tobaccos which are safer and free from pesticide residues. IPM practices like plantation of ‘trap’ crops and border crops, erection of pheromone traps and yellow sticky traps for pest surveillance and mass trapping, usage of botanicals and bio pesticides are some of the major initiatives undertaken so far to ensure compliant tobacco production. Minimization of CPA residues below the Guidance Residual Levels (GRL’s) is one of the serious issues fo-

cused by the Board. Sensing the impending danger of increasing chemical residues in the NLS of Andhra Pradesh, a major drive for eliminating chemical crop protection agents was taken up by Tobacco Board. Mass campaigns were implemented to educate growers on recommended pesticides, and a close watch was kept on farmers who tend to use non-recommended pesticides. Grower awareness meetings were conducted to educate the growers on pest monitoring through scouting and pheromone traps, light traps, needbased pesticide application and switch over to botanicals instead of chemical pesticides. Leaf samples were collected from every village and testing for pesticide residues was taken up to identify cases of non-compliance. These campaigns had made an effective impact among tobacco farmers and the results of leaf analysis showed positive results with residues well below the Guidance Residue Levels (GRL). Energy Conservation Measures To sustain tobacco farmer profitability and to make tobacco cultivation eco-friendly, it is crucial to reduce the cost of curing—it constitutes 30 percent of total cost of production. Adoption

of fuel-efficient technologies like paddy straw insulation, glass wool roof insulation of barns, installation of turbo ventilators for better barn ventilation and venture furnace sets for fuel wood savings were promoted through subsidies to the farmers. These interventions have yielded around 25 percent savings in fuel wood consumed and the insulation of 30,000 barns in Andhra Pradesh and Karnataka as part of these energy conservation measures. During 2018-19 crop season, the Tobacco Board of India has offered subsidies of Rs.21.04 million for promoting these energy conservation measures. Development of Greenery The Tobacco Board is focusing on green cover improvement as part of its Green Drive initiatives for addressing key issues like carbon sequestration, climate change mitigation and improvement of biodiversit y. The Tobacco Board has been fostering green cover improvement by pioneering initiatives like ‘Raise your own fuel’ program, ‘community tree planting’, ‘Develop greenery in village commons,’ envisaged for voluntary replenishment of green cover involving all stake holders.

The look of the future: Tobacco field installed with pheromone traps, yellow sticky traps and a marigold trap crop.

Promoting Farmer Social Responsibility The Tobacco Board has mandated planting of 10 tree saplings per year by every tobacco farmer for renewal of his/her grower registration. Tobacco Board is also contemplating a quota for each tobacco exporter to plant tree saplings for renewal of their registration with Tobacco Board every year. Tobacco Board has arranged supply of 6,50,000 saplings through the forest department to the tobacco farmers to fulfill their FSR. Community plantation program and developing green cover by raising plantations in village common lands of tobacco-growing villages is also being promoted. Corporate Social Responsibility Initiatives are being taken for development of greenery and raising plantations in Silvopastoral agroforestry cultivation model in the Village Commons for strengthening the resilience of local farming community. The Indian tobacco trade is involved in this activity under its Corporate Social Responsibility (CSR) programs. The Indian tobacco major M/S ITC Limited has envisaged to develop greenery in tobacco-growing villages and also take up other sustainability initiatives as part of its CSR program, which are given below: These outreaching efforts of Tobacco Board towards sustainability are yielding positive results. The utmost concern of the tobacco farmer is ‘farm profitability,’ also addressed through these initiatives and policy measures of Tobacco Board. These concerted efforts have placed Indian tobaccos a step ahead in meeting the customer requirements for safer tobacco production and the social cause of protecting ecological balance and climate resilience. All the stakeholders in the Industry are being propelled to do better and take this Green drive to a whole new level.

OCTOBER/NOVEMBER 2019 TOBACCO INTERNATIONAL

LEAF NEWS

Buyers bid for leaf at the American Tobacco Exchange auction in Wilson, N.C., on October 16.

UNITED STATES Low prices, weak supply, reduced production make for a bleak leaf market wilson, n.c.—The market for fluecured tobacco in the United States was close to collapse in mid October thanks to scant demand and very low prices. When Tobacco International attended the auction sale at American Tobacco Exchange here in Wilson on October 16, it found a glum group of farmers watching as buyers walked down the rows of bales. “1.20 a pound has been the best price I have seen, and that was for some very good tobacco,” said a flue-cured grower from Louisburg, N.C. “A lot of this crop was sold at 90 cents a pound, and some of it was sold at 75 cents!” He said that the latter price would not be enough to cover cost of production. “I am worried,” he said. “I have bought several (bulk curing) barns in the last few years. Counting the slabs and other preparation I have had to

put into them, I probably have $36,000 in each of them. If I decided to get out of tobacco, I think I would have a hard time selling them for more than $2,500.” All tobacco was believed to have been harvested in the eastern Belt, but a little flue-cured remained to be gathered

in the Piedmont area in western N.C. The process was expected to be done by November 1. No frost had been experienced in the Piedmont through October 16. Auction sales, or at least some of them, were expected to continue up to Thanksgiving.

It was hard for these farmers to get excited about the auction sale of their tobacco in Wilson, N.C. “A lot of this crop was sold at 90 cents a pound, and some of it was sold at 75 cents!” The latter price would not be enough to cover cost of production.

38 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

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LEAF NEWS

COLOMBIA Growers bemoan PMI departure medellín—Tobacco growers were scurrying in the fall to find some way to cushion the impact of the decision of Coltabaco—Philip Morris International, announced in June, to end contracting of Colombian leaf. It also announced its intention to end its domestic cigarette manufacturing operations here, in part because of the difficulties of dealing with the growing contraband problem and in part because of the global trend away from tobacco products. The company has operated factories in the cities of Medellín, Barranquilla and Santander, represented by the National Union of Workers of the Tobacco Industry. The grower association hoped to persuade PMI to conduct a transition program to help farmers convert to other crops. Coltabaco was celebrating its hundredth anniversary.

MALAWI Exceptionally dry weather reduces production

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blantyre—Very dry weather conditions reduced production of 2019 burley in Malawi, then the crop encountered a lackluster market, according to a report from Hail & Cotton

International Group. At the end of the market, an average price (in US$/kilogram) of $1.32 had been achieved, down from $1.56 in 2018. Kilograms sold were nearly 138 million, down from 164 million in 2018. There was a high accumulation of “No Sale” tobacco during the course of the season, so “merit sales” were prescribed for unsold tobacco,” Hail & Cotton said. The average running green price for this tobacco was quite low at $0.50 per kilogram. “[But] competition has increased in the upper stalk segment, with a realization of a lack of leaf availability on offer,” the leaf dealer said.

UNITED STATES How much tobacco did the U.S. produce? washington, d.c.—The US Department of Agriculture issued its final estimate of American tobacco production in mid-October. It projected that flue-cured would be down 15 percent in volume because of dry weather throughout the season plus the catastrophic effect of Hurricane Dorian in eastern North Carolina and Southern Carolina. But the burley crop was projected only eight percent downward, mainly because of good conditions in the leading state of Kentucky. Following are USDA’s projections

Flue-cured harvest wound up on this eastern N.C. farm on October 2.

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40 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

LEAF NEWS North Carolina—0.64 million pounds, down 42 percent from last season. Virginia—1.2 million pounds, down 16 percent from last season. All U.S. burley—91.8 million pounds, down 8.5 percent from last season.

Workers on the Glover farm load freshly harvested leaf into curing boxes.

Fire-cured: 47.4 million pounds, down 19.5 percent from last season. Dark air-cured: 27.6 million pounds, up 3.7 percent from last season. for each of the types. For flue-cured and burley, projections by state are included. Flue-cured: North Carolina—212.4 million pounds, down 15.3 percent from last season. Virginia—30 million pounds, down 28.5 percent from last season. Georgia—18 million pounds, down 24.2 percent from last season. South Carolina—13 million pounds,

down 38.5 percent from last season. All U.S. flue-cured—274 million pounds, down 24.1 percent from last season.

Pennsylvania Seedleaf : 5 million pounds, down 8.3 percent from last season.

B u r l e y : Kentucky—77.9 million pounds, down 2.6 percent from last season. Tennessee—6 million pounds, down 33.3 percent from last season. Pennsylvania—6 million pounds, down 31.8 percent from last season.

Sou t her n Mar y land : 2.2 mi l lion pounds, down 28.5 percent from last season. All tobacco, USA: 448 million pounds, down 16 percent from last season.

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42 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

84th EDITION

2019 BUYERS’ GUIDE & GLOBAL DIRECTORY

ION EDIT

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Tobacco International

Buyers’Guide

& Global Directory

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

Albania – Bangladesh

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

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

ALGERIA Cigarette Manufacturer British American Tobacco Algeria

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

ANGOLA

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

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

Consulting Knapp AG

XXXXXXX — XXXXXXX

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

A 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.

Logistic Equipment Knapp AG

Acetate Tow

Product Manufacturer Knapp AG

Adhesive Applicators

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

Research & Development Knapp AG Trierenberg Holding AG

Section 3: Contact Information

Section 2: Supplies & Services, Machinery & Equipment

Distribution/Product, Importer & Exporter Top Brands Weswaldi International

Cigar Manufacturer Knapp AG ETA (Empresa dos Tabacos de Angola), SARL Supplier Armenian Greek JV Masis Tobacco MV Co. Ltd Cigarette Manufacturer Trierenberg Holding AG Wholesaler/Distribution British American Tobacco Angola Knapp AG AUSTRALIA rter ETA (Empresa dos Tabacos de Angola), SARL Association AZERBAIJAN Product Manufacturer Supplier Tobacco Cooperative of Victoria . Ltd ETA (Empresa dos Tabacos de Angola), SARL Cigarette Manufacturer Cigar Manufacturer British American Tobacco Azerbaijan Altesse Imperial Tobacco Australia Ltd ARGENTINA BAHAMAS Cigarette Manufacturer Association Berndorf Band GmbH British 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 Industrial Conveying (Aust) Pty. Ltd BANGLADESH Nobleza Piccardo SAICFolial yF GmbH Product Manufacturer Cigarette Manufacturer Leaf Dealer American Tobacco Australia Abul Khair Leaf Tobacco Co. Ltd AG British Alliance One ArgentinaKnapp SA Philip Morris International (Australia) Ltd Bangladesh Tobacco Industries Ltd . Ltd Bonpland Leaf SA (BLASA) British American Tobacco Bangladesh Supplier Coop. de Salta B.A.T. Co. Ltd Kukla Waagenfabrik GmbH & Co. KGHusna Anzpac Services (Australia) Pty. Ltd Cooperativa de Tabacalera de Tucuman Ltda Tobacco Pvt. Ltd FlexLink Systems Pt. Ltd Cooperativa de Tabacaleros de Corrientes Ltda Nasir Leaf Tobacco Industries, Ltd Industrial Conveying (Aust) Pty. Ltd Mayr-Melnhof Karton Cooperativa de Tabacaleros de Jujuy Ltda Innovia Films (Asia-Pacific) Pty. Ltd Distribution/Product, Importer & Exporter Cooperativa Tabacalera de Misiones Ltda Kamra International Pty. Ltd Abul Khair Leaf Tobacco Co. Ltd J. Felipe Ottaviano y Cia. SA Mayr-Melnhof Packaging International/ RothTech Pty. Ltd Nasir Leaf Tobacco Industries, Ltd Universal Leaf Tabacos SA Treofan Australia Pty. Ltd Dealer International Tobacco Packaging Leaf Leaf Processer Abul 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

see Filter Tow

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 Oy (Finland) SPI DevelopmentsTervakosi Ltd. (United Kingdom)

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

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

International Baler Corp. (United States)

Baling Press see Presses (Balers)

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

Band Tobacco Machinery

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

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

see Homogenized Tobacco Making Machinery

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

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

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

Base Paper

Accumen Technology, Watermeadow House, Watermeadow, Chesham, Bucks HP51LF, United Kingdom. Tel: +44 1 494

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

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

Belt Fasteners

Mechanic Muller Vin Opico (Un Powell Ma Taylor Ma

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

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

Bale Slicers

Vintero Corporation (United States)

Adhesives

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

Blended Cut Tobacco

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

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

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

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

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

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

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

Aluminu AL INVEST

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

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

Suppliers. Products: Carton Boxing/Forming Machinery, 79 4633. Fax: +44 1 494 794 644. Personnel: Colin Bunting, Africaleaf (Malawi) Ltd., Plot 29/173B Alimaunde, P.O. 3300. Fax: +55 Cigarette Filter Tip Machines, Cigarette Making marketing director; Frank Daugherty, sales director; Box 40012, Kanengo, Lilongwe 4, Malawi. Tel: +265 1 710 Machinery, Cigarette Tax Stamping Machines, Cutters & Evason, technical director. Business Type: Suppliers. 914. Fax: +265 1 712 417. Email: leaf@africaleaf.com. Web: Cutting Machines, Packaging Machinery, Aegean Tobacco Exporters Association, Ataturk Cad.Rebuilt No:Machinery m. Web:John www. Products: Weight Control Equipment. www.tribac.com. Personnel: A.C. Masi, shipping director; R.I. Materials-Non Tobacco, Spare Parts, Wrapping Machines. Glenn, director (alternate); S.A. Marshall, finance director; Office: Aiger Group AG. Tel: +41 41 7267873. Ace Interactive Ltd., Unit 3, 94 Charlton Road, Andover, 382, Alsancak, Izmir Turkey. 232 463 69LLC. M. Gange Harris, leaf35220, director; C.D. Le Patourel, managing Tel: oun Khouri. Email:+90 office@hqgroup.aiger.com. Aiger USA Hants SP10 3JZ, United Kingdom. Tel: +44 1264 350 424. director. Business Type: Leaf Dealers. Tel: +1 412 616 2833. Fax: +1 412 251 0466. Email: sales@ Fax: +44 1264 356 281. Email: sales@ace-interactive.com. usa.aiger.com. Aiger Far East Ltd. Tel: +65 9272 2203. 50. Fax: 232C.P.463 39de Castilhos 41. 1021/31, Email: Web: www.ace-interactive.com. Personnel: Barry austin,+90 Afubra, 1021, Rua Julio Santa eib1@egebirlik.org.tr. Email: kevin.ang@aiger.com. Aiger UK Ltd. Tel: +44 (0) 121 operations director; Keith Tarrant, quality manager; Michael Cruz do Sul, RS 96800, Brazil. Tel: +55 51 371 13244. 230 1768. Email: sales@aiger.com. undavinCole, managing director. Business Type: Suppliers. Business Type: Associations. Web: www.egebirlik.org.tr. Personnel: Sezmen Alper, sec. Products: Classifying Equipment, Grinding Wheels, Knives, Airco DIET, 110 Allen Rd., Liberty Corner 07938, United AG Sales & Service, 1185 Pineridge Rd., Norfolk, VA 23502, Metal Detectors, Spare Parts. 863 2354 576. States. Tel: +1 908 626 2700. Fax: +1 908 626 9650. Email: States. Tel: +1 757 855 0191. Fax: +1 757 855 4155. manager. Business General; TahirUnitedKanlikuyu, department aircodiet@aircodiet.com. Personnel: M. Auerbach, president; Ackerman and Baynes LLC., 4211-15 Erdman Ave., Business Type: Suppliers. Products: Agricultural Chemicals, K. Laigaard, projects director. Business Type: Suppliers. co@yahoo.com. Baltimore, MD 21213-2698, United States. Tel: +1 410 342 Agricultural Equipment & Machinery, Fertilizers, Tear Tapes. Products: Expanded Tobacco, Tobacco Expansion Systems Type: Associations. 2216. Fax: +1 410 563 3971. Email: matt.smith@ackbay. (CRS), Tobacco Expansion Systems (DIET), Tobacco Expansion Agency for Dematic Corp., 507 Plymouth Avenue, N.E., com. Web: www.ackbay.com. Personnel: Matthew Smith, Saamir Khan, Systems Machinery. Grand Rapids 49505-6029, United States. Tel: +1 616 913 Sales. Business Type: Suppliers. Products: Drying Machinery, 7700. Fax: +1 616 913 7701. Email: usinfo@dematic.com. Feeders, Rotary Dryers, Spare Parts. Airco DIET AS, Snaremosevej 27, Fredericia 7000, Denmark. AER PremiumWeb:Electronic Cigarettes, www.dematic.com. Business Type: Suppliers. Products:5130 Tel: +45 Avenida 76201530. Fax: +45 76201531. Email: aircodiet@ Adamantine Precision Tools Ltd., 501 Research Rd., Belts & Belting, Conveyor Systems, Packaging Machinery, aircodiet.com. Web: www.aircodiet.com. Personnel: Asbjorn Richmond 23236-3090, United States. Tel: +1 804 794 9615. Storage Warehousing. Schwert, managing director; Kel Laigaard, director. Business Encinas,Business Carlsbad, California 92008, United States. Tel: (800) Fax: +1 804 794 9514. Email: sales@Fi-Tech.com. Type: Suppliers. Products: Processing Machinery. Agio Cigars, Wolverstraat 3, 5525 AR Duizel, Netherlands. Suppliers. Products: Grinders, Grinding Wheels, Knife m 1000Type: AB, Tel: +31 497 58 25 00. Fax: +31Suppliers. 497 51 64 06. Email: info@ Grinders & Sharpeners, Spare Parts. Air-cured Tobacco Assn., P.O. Box 1979, BMZ Tobacco 570-6350. Business Type: Products: Electronic agiocigars.nl. Web: www.agiocigars.com. Business Type: Auction Floors, Willowvale, Harare, Zimbabwe. Tel: +263 4 20 628 Adams 7697. International Ltd., 5/26-29 Saladang Road, Silom, Cigar Manufacturers, Product Manufacturers. 621 331 4. Fax: +263 4 614 489. Email: acta@africaonline. Cigarettes. Bangrak, Bangkok 10500, Thailand. Tel: +66 2 233 9818. co.zw. Business Type: Associations. Agricultural Development & Marketing Corp., P.O. Box

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

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

Andover

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

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

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

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

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

www.tobaccointernational.com • sales@tobaccointernational.com

CALENDAR OF EVENTS November 12–14, 2019 Tabexpo RAI Exhibition and Convention Center, Amsterdam, Netherlands. Web: tabexpo219-amsterdam.com.

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November 20–22, 2019 1st China International Cigar Expo (ICE ) Shenzhen Convention and Exhibition Center, Shenzhen, China. Hosted by China Cigarette Sales Corporation and Shenzhen Municipal Tobacco Company Inc., organized by Shenzhen Tobacco Import & Export Co., Ltd. Web: cigarambassador.com. January 23–31, 2020 TPE20 International (Tobacco Plus Expo) Las Vegas Convention Center, Las Vegas, Nev. Web: tobaccoplusexpo.com. February 16–21, 2020 12th Annual ProCigar Festival La Romana and Santiago de los Caballeros, Dominican Republic. Premium cigar festival. Contact: ProCigar, Web: procigar.org. February 24–28, 2020 22nd Festival del Habano Havana, Cuba. Farm/factory tours, seminars, trade show, Habanos World Challenge contest, gala closing dinner.

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ADVERTISER INDEX Airco Diet ................................................................... 12

Independent Leaf Tobacco Company .......................... 16

Aiger Group AG .......................................................... 23

JTI ............................................................................ 17

Arkote ........................................................................ 26

Julius Glatz ............................................................... C2

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

Reto Iten ................................................................... 40

Boegli-Gravures SA .................................................... 21

Socotab .................................................................... 35

Cerdia ........................................................................ 31

Star Agritech International ................................... 15, 39

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

SWM International ..................................................... 33

GCH Cardwell............................................................. 13

Tobacco Board of India ............................................. 41

Hampshire Tobacco Machinery Services (HTMS) ....... 34

Tobacco International Buyers’ Guide........................... 43

Heinen Kohl .............................................................. 42

TSAL Ltd. (Tobacco Solutions Asia Limited) ............... 25

Hoffman Neopac ....................................................... 14

U.S. Tobacco Cooperative, Inc. .................................. 29

Imperial Tobacco ....................................................... 27

Universal Leaf Tobacco Company, Inc. ........................ 3

44 TOBACCO INTERNATIONAL OCTOBER/NOVEMBER 2019

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 3, 2019

INTERTABAC 2019

Breaks Attendence Records, But Can Growth Continue?

• MacBaren Acquires Planta Tabak Brands • STG to Acquire Royal Agio Cigars in 2020 • 2019 Cigar Trophy Awards Presented

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{Contents} 6

TOBACCO PRODUCTS INTERNATIONAL » Q3 2019

FEATURES

{ EDITORIAL }

{ TRADEFAIR WRAPUP }

E. EDWARD “TED” HOYT III Editor

6 InterTabac/InterSupply Draws Record 13,800 Visitors An upgraded Dortmund Exhibition Centre and expanded show format welcomed an ever more international crowd of attendees from around the world for the world’s largest tobacco trade fair. » CONTRIBUTED REPORT

ROBERT M. LOCKWOOD Publisher & President { ART & PRODUCTION } MELINDA AYALA Production Coordinator

DEPARTMENTS

ROXANNE CORDOVA MELENDEZ Accountant

Industry News ..................................... 64 Brand News .......................................... 10 Product Showcase ................................. 12

{ ADVERTISING REPRESENTATIVES }

ALL REGIONS

Robert M. Lockwood TEL: + 1-212-391-2060, x111 EMAIL: robert@lockwoodpublications.com SPECIAL SALES REPRESENTATIVE

George E. Lockwood TEL: + 1-413-775-0005 FAX: + 1-413-775-9010 EMAIL: lockwood.george@gmail.com Tobacco Products International Lockwood Trade Journal Co. Inc., 3743 Crescent Street, Second Floor Long Island City, New York 11101 U.S.A. Tel: +1 (212) 391-2060

{Editor’s Letter}

SUBSCRIPTION SERVICES:

A Changing Tobacco Industry Leads to an Evolving InterTabac Trade Fair

info@lockwoodpublications.com EDITORIAL SUBMISSIONS/INQUIRIES:

editor@tobaccoproductsmag.com

As new and emerging market segments—combined with traditional well established but actively growing ones—continue to flex their muscle and consumer appeal, their presence at the InterTabac trade fair have also been expanding, changing the face and personality of the event. The water pipe (hookah) sector is booming, and as a result, has had much more presence at the show. In fact, Sabine Loos, CEO of Westfalenhallen, says water pipes, shisha tobacco, and related accessories showcased at InterTabac has increased by more than 50 per cent since 2013, now occupying its own area, Hall 8. Meanwhile Next Generation Products, comprising e-cigarettes and e-liquids and the myriad of support equipment, has grown significantly in recent years, and this year occupied its own dedicated exhibit area in Halls 1 and 2.

AD INDEX David Ross International s.r.l. ....... 11 Durfort ........................................ 5 Intercontinental Tobacc ................. 7 Roll 4 You .................................. C2

As headlines in this issue of TPI illustrate, mergers continue to change the face of traditional tobacco, but for now it still dominates the industry.

» Ted Hoyt, Editor

Tobacco Products INTERNATIONAL

Tobacco Products International

TPI 3

{Industry News} Scandinavian Tobacco Group to Acquire Royal Agio Cigars Scandinavian Tobacco Group A/S (STG),

Illegal Cigarette Factories Targeted in Poland

a globally operating manufacturer of

Intelligence provided by Imperial

cigars, pipe tobacco, and fine-cut tobacco,

Brands has led to a series of suc-

reached an agreement in principle with

cessful raids on illegal cigarette

the shareholders of Royal Agio Cigars in

production sites in Poland in the last

September to acquire a 100% share in the Dutch family-owned business. The parties

12 months.

DUIZEL, THE NETHERLANDS—The

Danish

expect to complete the transaction in the first half of 2020. Shareholders of Royal Agio Cigars believe the intended sale is in the interest of

Four sites have been shut down as a result of the operations, with 121

long-term continuity of the activities and the brands of the family-owned business,

million counterfeit cigarettes seized

which was founded in 1904. The combined product portfolio will comprise many

and more than 80 arrests made. The

successful and highly appreciated global brands. Royal Agio Cigars, known for cigar

actions have significantly disrupted

brands such as Agio, Balmoral, Panter, and Mehari’s, is one of the four largest cigar

four distinct criminal networks,

manufacturers in the world, with net sales of €133 million in 2018. Worldwide, the

stemming funds, dismantling infra-

company employs approximately 3,200 people in its factories in the Netherlands,

structure, and removing equipment

Belgium, Sri Lanka, and the Dominican Republic and its sales organizations in the

and manpower. All four sites were

Benelux, France, Germany, Italy, and the U.S.

counterfeiting brands produced by

“This decision has not been easy,” said Boris Wintermans, CEO of Royal Agio Cigars,

Imperial Brands, directly threatening

in a statement. “We have a wonderful company with highly committed employees and

the integrity of target markets includ-

loyal business partners, some of whom have been working with us for over 50 years. But

ing Germany, the UK, and Poland.

the combination of the two companies will be in a better position to deal with the financial consequences of ever-increasing legislation and regulations. We carry responsibility for the continuity of Agio and consider our decision to be inevitable in the long term.” Listed on Nasdaq Copenhagen since 2016, STG holds over 200 global brands and a number of strong local brands and employs 7,650 people, mainly in the Dominican Republic, Honduras, Nicaragua, Indonesia, New Zealand, Australia and the U.S.

Mac Baren Tobacco Takes over Berlin-based Planta Tabak-Manufaktur Brand Portfolio

tablished family business, and we are

SVENDBORG, DENMARK—Mac

a difficult but deliberate step. After 63

Planta Tobacco’s popular pipe tobacco

Tobacco announced an agreement to

years and three generations of successful

and fine cut brands including Danish

acquire the outstanding pipe and fine-

ownership, the family-owned company

Black Vanilla, Holger Danske, Cellini,

cut tobacco brands from Planta Tabak-

stopped producing tobacco in Berlin on

PL88, and Cheetah now be produced

Manufactur’s traditional portfolio.

31st August 2019. “With the many chal-

by Mac Baren Tobacco Company.

Baren

“The Planta portfolio includes a num-

lenges our family has faced over the past

very happy that the legacy of our parents and grandparents will continue.”

Going forward, international sales

ber of very strong and internationally

few years and the ever-increasing require-

for Planta tobacco will be managed

renowned brands that strengthen the

ments of the EU Tobacco Directive, we

directly by Mac Baren Denmark, while

product range of the Mac Baren Tobacco

have decided to withdraw from tobacco

German distribution will remain in Berlin

Company,” said Mac Baren CEO Simon

production,” said Obermann.

at Unitas Tabakfabrik GmbH, a Planta

Sophus Nielsen. For Nils Obermann and Lukas Stiller,

“Mac Baren’s offer to acquire our

sister company that was included in

business required little consideration

the transaction. Obermann has agreed

the young managing directors of the tradi-

and we quickly agreed,” said Stiller.

to stay with the business as Managing

tional Kreuzberg company, the move was

“Like us, Mac Baren is an old, well-es-

Director with Unitas.

TPI 4

Q3 2019

Photos: Wolfgang Helm/Messe Dortmund

{Tradefair Roundup}

InterTabac 2019 Draws Record 13,800 Visitors

many challenges in the future. The con-

Improved services, a new accompanying programme, and a modernised look set higher new standards at the InterTabac and InterSupply trade fairs. »CONTRIBUTED REPORT

therefore incredibly important for whole-

densed overview of all tobacco product and ancillary product segments as given by InterTabac at the Dortmund location is salers and retailers in today’s world.” Classic segments continue to be a central element. Fans of classic tobac-

nterTabac, the world’s largest trade

Almost 58 per cent of the visitors

co products and pipes and cigars got

fair for tobacco products and smok-

came from Germany. “German partic-

their money’s worth. Exhibitors in Halls

ing accessories, was again the most

ipants primarily included classic tobac-

4 to 7 showcased additive-free ciga-

important meeting place for national

conists, explained Sabine Loos, CEO of

rettes, high-quality pipes, and interest-

and international representatives of

Westfalenhallen Unternehmensgruppe

ing up-market products from small cigar

the tobacco industry, retail and whole-

GmbH. “The interest in new topics and

manufacturing businesses.

sale sectors this year from 20 to 22

trends and the personal exchange of in-

The satisfaction of the tobacco retail

September and boasted about 40,000

formation prevailed as usual. That is not

trade with InterTabac 2019 was under-

sqm of exhibition space in the halls of

surprising because only InterTabac gives

lined by Steffen Kahnt, Director of the

the Dortmund Exhibition Centre.

retailers and wholesalers the opportuni-

German Association of Tobacconists. “In-

Besides numerous German visitors

ty of exploring and testing the product

terTabac has once again given the retail

from the key target groups and sec-

width and depth and making contacts

sector an overview of all segments of the

tors—including classic tobacconists

with established and new customers.”

national and international tobacco world.

petrol stations, and kiosk retailers—inter-

Thomas Schäfer, Managing Director

It continues to be an indispensable dia-

nationality was again an important fea-

of the Tobacco Trade Association of North

logue, information and order placement

ture of the trade fair. About 42 per cent

Rhine Westphalia added that, “Year after

platform, especially for tobacconists. This

of the visitors came from abroad: The vis-

year, InterTabac expands its reputation as

central meeting place gives a comprehen-

itors’ home countries included the USA,

the world’s flagship trade fair of the to-

sive overview, especially of the classic ci-

China, Chile and South Africa. European

bacco industry and as the meeting place

gar, cigarette and pipe segments, to make

home countries were primarily Spain,

of the tobacco family. And that applies

the retailers’ product portfolios viable for

Italy, France, The Netherlands and Turkey.

again this year. The trade must overcome

the future,” SteffenKahnt said.

TPI 6

Q2 2018

{Tradefair Roundup} NGP Segment Popular Again

by the guests. Sabine Loos explained the

Improved Services for Fair Visitors

Building upon growing momentum in

background of the new offer: “Thanks to

Besides the innovative accompanying

previous years, there was great inter-

the accompanying programme, InterTa-

programme, new services also made the

est in Next Generation Products (NGP),

bac is now much more than an import-

trade fair even more attractive, including

which this year filled the entire West-

ant order placement platform. It sets

a choice of exclusive hotel packages and

falenhalle event arena and Halls 1 and

new standards for the national and inter-

an improved shuttle service to nearby

2 of the Dortmund Exhibition Centre.

national exchange of trade information.

airports and last but not least the new

Trade visitors purused the latest e-cig-

Accordingly, visitors can ideally prepare

modern, functional and light-flooded

arette hardware, tested innovations in

and pave the way for future business ac-

4,500 sqm North Entrance.

the vape segment, and sampled popular

tivities here.”

Interested exhibitors and trade vis-

smokeless products such as chewing

One of the many exciting lectures

itors can already note the date in their

tobacco. “The NGP segment continues

was futuristic: Dr Felix Stehle from the

diary for next year’s InterTabac and In-

to show a positive development and

Technical University of Dortmund gave

terSupply. The two trade fairs will take

that was also evident from this year’s In-

an overview of the “Generation of a

place from 18 to 20 September 2020 –

terTabac trade fair,” noted Loos.

nicotine-free, nontransgenic tobacco

of course again in the halls of the Dort-

A similar situation could be seen on

plant” topic. With the aid of state-of-

mund Exhibition Centre.

the shisha stands in Hall 8 and a part of

the-art scientific methods, researchers

Hall 6. “The pleasure of smoking shisha

succeeded in modifying the genes of

as a new pastime is very popular. The

a tobacco plant in such a way that its

exhibitors took this trend into account

leaves no longer contain any nicotine.

and showcased their diverse product

These results open up the opportuni-

range that fulfils all wishes of the con-

ty for the tobacco industry to produce

sumers,” said Loos.

nicotine-free cigarettes. The “Cigar &

TPI

Nicaraguan cigar maker Joya de Nicaragua launched its new limited production “ambassador” cigar, Número Uno, limited to only 1,500 boxes a year for the global market.

Rum Pairing” event where internation-

New Events Expand InterTabac

al premium rum brands were paired

The premiere of the new diverse accom-

with Nicaraguan cigars to give the par-

panying programme that supported this

ticipants a very exciting taste experi-

year’s trade fair was very well received

ence was very popular.

2019 Cigar Trophy Winners

BEST CIGAR BRAND Cuba: Cohiba Dominican Republic: A. Fuente Honduras: Plasencia Cosecha 146 Nicaragua: Perdomo Habano Bourbon Barrel Aged BEST CIGAR Cuba: Cohiba Siglo VI Dominican Rep.: Davidoff Winston Churchill The Late Hour Churchill Honduras: Eiroa The First 20 Years 54 × 6 Nicaragua: My Father La Opulencia Toro U.S.A.: Tatuaje 15th Anniversary Habano Rosado Belicoso Fino

The Cigar Trophy Awards are one of only a few honors in the industry that are determined by consumer voting, first by nominating candidates in five different categories (Best Brand, Best Cigar, Best Value, Best Accessory, and Best Lounge), then voting for a winner among the top five finalists within each category. In addition, four additional awards are selected by staff members. The 2019 awards were presented by Cigar Journal Magazine on Friday, 20th September, at the Westfalenhallen Dortmund Conference Center.

TPI 8

Q2 2018

BEST VALUE Cuba: Saint Luis Rey Dominican Republic: E.P. Carrillo Encore Honduras: Villa Zamorano Nicaragua: A.J. Fernandez New World Cameroon BEST CIGAR ACCESSORY: Boveda BEST CIGAR LOUNGE: Kempinski Cigar Lounge by Zechbauer CHARITY & COMMUNITY: Toast Across America OUTSTANDING ART: DeArt Italian Fine Furniture AMBASSADOR: Cigar Rights of Europe LIFETIME ACHIEVEMENT: Rocky Patel

Tobacco Products INTERNATIONAL

NOW! Published quarterly, Tobacco Products International is designed for tobacco product importers, exporters, distributors, wholesalers and “THIS IS US” CELEBRATING DOMINICAN CIGARS retailers who are looking for new products and services. THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 2, 2018

The Dominican Republic’s association of leading cigar makers, Procigar, hosted the 11th Annual Procigar Festival where it welcomed Royal Agio Cigars as its newest member.

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 3, 2018

INTERTABAC MARKS 40 YEARS Dortmund trade fair continues to expand its global reach and merchandise depth.

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

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 1, 2018

FESTIVAL DEL HABANO AT 20

Excitement at Cuba’s Habanos Festival 20 Años was boosted by strong Habanos S.A. financials for 2017, thanks to the surging Chinese market. PLUS: • Arnold André is Once Again 100% Family Owned • Cohiba Atmosphere Opens in Sofia, Bulgaria

To Subscribe: Call: +1-212-391-2060 Email: info@lockwoodpublications.com PLUS: • Italy’s Toscano Cigar Turns 200 • Habanos Terrace Opens in Lugares, Italy

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www.tobaccoproductsmag.com

{Brand News} CAO Hommage to Nicaragua from STG Scandinavian Tobacco Group (STG) has created CAO Hommage to Nicaragua, a limited edition 58 ring gauge by 6 inch Gran Toro with a unique blend for select international markets. The cigar will be released in late 2019 in select countries. The cigar is made at Scandinavian

Nicaraguan growing areas— Jalapa,

Davidoff’s Camacho Connecticut Distillery Edition

Condega, and Estelí—along with Honduran filler, Connecticut broadleaf

This fall, Davidoff is bringing one of its

binder, and Ecuadorian Habano wrapper.

new Camacho Distillery Edition cigars

Tobacco Group Estelí in Nicaragua, utilizing a filler blend that includes tobaccos from three major

Custom packaging was also created for this limited edition, including a oneof-a-kind ring, foot band, and sleek matte white boxes of 10 cigars. According to Scandinavian Tobacco Group, the cigar will be available in The

to European markets. Camacho Connecticut Distillery Edition is a variation of one of

Netherlands, Belgium, Luxembourg, France, and Spain as well as select Asian markets.

Camacho’s best-selling core blends

Scandinavian Tobacco Group, Ltd., Denmark, Web: caocigars.com.

expressed in a deeper, more complex and unique flavor profile by aging the company’s proprietary Corojo tobacco

Villiger Cristal Premium Filtered Cigarillos

from Honduras in charred bourbon barrels for a minimum of six months.

The House of Villiger presents Villiger Cristal, a new brand created to deliver “plea-

The blend is represented in a 50 x 6

sure in a class of its own.” Company chairman Heinrich Villiger spent a lot of time

Toro format.

refining and sampling until he had the perfect tobacco mixture, the Swiss company

“This is boldness meets bal-

explains. The result: two exquisite filter cigarillos made from the best tobaccos, dis-

ance, with a bourbon influence,”

tinctive through their unique taste and quality. Two varieties are offered.

the company explains. “We put a

Villiger Cristal Original Blend, in its blue shoulder box, targets consumers who

complex spin on an old classic.”

like the taste of pure tobacco, with top-grade

The bourbon barrel-aged Corojo

filler made from Cuban tobaccos.

tobacco is then combined with

Villiger Cristal Special Blend, with its

Aleman Ligero from Honduras

magenta-colored package, is dedicated to lov-

and Nicaragua, Honduran Corojo

ers of flavored cigarillos. Its “exquisite”

binder, and Ecuadorian Connecticut

aroma promises an “extraordinary”

wrapper to create this special vari-

smoking experience.

ation of the Camacho Connecticut

To accompany these luxury cigarillos—which are highlighted by laser

blend. The cigars are presented in 20 -count lacquered boxes.

designs at the cigarillo’s filter end—Villiger created

Davidoff says the Camacho

premium 20-count shoulder boxes featuring spar-

Ecuador Distillery Edition is “new

kling highlights. Suggested retail, 7.50€.

school” bold with a vintage twist, a

In promotional materials, Villiger tempts consumers to “make a conscious deci-

powerful blend offering a wide variety

sion for extravagance and elevate your smoking experience to the next level. Spoil

of complex flavors. It’s a smoke that

yourself with a Villiger Cristal, sit back, and let your mind wander. Life is too short to

looks as good as it tastes.”

postpone indulgence.”

Oettinger Davidoff AG, Basel, Switzer-

Villiger Söhne AG, Pfeffikon, Switzerland, Web: villigercigars.com.

land, Web: oettingerdavidoff.com.

TPI 10

Q3 2019

Royal Agio Cigars Releases Ernest-Perez Carrillo Collaboration, Dueto, in Europe Royal Agio Cigars has brought its Balmoral Serie Signatura Dueto, the first handmade cigar blend released under its collaboration-based Balmoral “Signature Series” platform, to Europe following its US launch last year. For this first release, Royal Agio Cigars CEO Boris Wintermans teamed up with the legendary Dominican Republic cigar maker Ernesto Pérez-Carrillo to deliver a special, one-of-a-kind sensorial experience. Blended by Pérez-Carrillo at his Tabacalera La Alianza factory in the Dominican Republic to “excite the senses,” Dueto captures the complex intersection of two distinct premium cigar blending signatures. Incorporating each cigar makers’ hand-selected, preferred tobaccos, this cigar blend delivers the signature elegant robustness of Pérez-Carrillo cigars and the signature balance of sophisticated complexity and smoothness of Wintermans’ Balmoral handmade cigars. “I want to push the boundaries of what can be discovered in premium cigar blending, and it is this desire that inspired the creation of the Balmoral Serie Signaturas and initial conversations with Ernesto,” said Wintermans. Added Pérez-Carrillo, “For the both of us, it’s never been about big volume. It’s just the opposite. It’s always been about the underlying passion that drives us to create new and unique cigar blends that will inspire cigar smokers.” Royal Agio Cigars, Duizel, The Netherlands, Web: agiocigars.com.

Balmoral Serie Signatura Dueto showcases extensively aged Nicaraguan and exclusive, stalk-cut Brazilian Mata Norte fillers; an Estelí, Nicaragua binder, and a robust, yet elegant Nicaraguan wrapper from Jalapa. The line, which is now available in Europe, is presented in five vitolas, packaged in 10-count boxes—Robusto 5 x 50; Ovación (Figurado) 5 1/2 x 50; Gran Toro 6 x 52; Gordo 6 x 60; and Churchill 7 x 49.

Tobacco Products International

TPI 11

{Showcase} Elie Blue Marquetry Jet Flame Cigar Lighters The marquetry decorations on Elie Bleu’s J-14 torch flame lighter models replicate the marquetry featured on its Alba humidor collection, providing

sales as the company continues to expand its concept of matching families of

Zino Z-Collection Adds Humidors and Leather Cases

accessories. The meticulously crafted inlaid designs are made from small pieces

The Z80 humidor comes in a modern

of variously colored wood, painstakenly cut and assembled entirely by hand in

design combining a wooden look with

the grand French tradition known as “element by element” marquetry. Lighters

fresh accent colors. The result are strik-

feature all-brass case construction, the company’s exclusive cigar diamond jet

ing blends: natural oak/red, black oak/

burner system technology, piston cap operating system, side ignition, view tank

mint, gray oak/cyan. The humidors are

window with level gauge, half moon flame adjuster, fuel cover, and rhodium

equipped with the proprietary Zino slim

finishes. Four different styles are offered—Black, Yellow, Blue, or Red lacquer—

self-regulating humidification system

each featuring its own unique inlaid marquetry design. Suggested retail, €295.

that provides optimal storage conditions

Elie Bleu S.A., Gennevilliers, France, Web: eliebleu.fr.

for up to 80 cigars, ensuring 70-72% rel-

retailers an opportunity for either standalone or add-on

ative humidity. Fully lined with premium Okoumé, an odorless and tasteless wood to prevent flavor transfer to cigars and equipped with a tray and dividers; this eye-catching, mid-size humidor is an easy answer to keeping cigars in perfect condition.

Sporty Edgar Pipe from Vauen Technical, dynamic, and extraordinary: the sporty Edgar pipe is a cut above. The ribs of the ceramic composite bowl ring on this solid briar pipe have the same effect as

Made by hand of cowhide leather and lined with vibrant colors that match the humidors, the Z-Collection cigar

the cooling fins on a motorbike cylinder. Thanks to their heat dissipation capabilities,

cases will keep two

these fins literally make the smoking experience cooler. For fans of bent pipes, the

cigars up to

purist design has also been interpreted in a curved shape. Designed and hand made

a 54 ring

in Germany, features acrylic fishtail mouthpiece with silver ring, finished in “white

gauge

dot” quality in a choice of sleek white or rich brown stain. Comes in a gift tin.

humidi-

Vauen Vereinigte Pfeifenfabriken Nürnberg GmbH, Nuremberg, Germany, Tel:

fied for

+(49) 911 4243680, Fax: +(49) 911 4243668, Email: info@vauen.de, Web: vauen.de.

15 days. Its ergonomic shape with adjustable length provides ultimate comfort in

Peterson of Dublin Christmas Pipe 2019

the hand. These hand-made cigar cases are available in two sizes: XL-2 to fit up

Peterson’s special edition Christmas pipe for 2019 presents 12 of their most pop-

to a Toro format, and R-2 that fits up to a

ular shapes in a warm and subtly festive palette finished in a rugged, burgundy

Robusto format. The cases are available in

rustication, topped with a bright copper mount, and fitted to a

colors matching Davidoff’s new Z80 humi-

cumberland patterned acrylic mouthpiece.

dors. €495 suggested retail price.

Peterson of Dublin, Dubline, Ireland,

Oettinger Davidoff AG, Geneva,

Email: sales@peterson.ie, Web: peterson.ie.

Switzerland, Web: davidoff.com.

TPI 12

Q3 2019

Tobacco International - October/November 2019 • Tobacco Products International - Quarter 3, 2019

Articles inside

TI Editorial

TI Digest

The Boris Johnson Factor

The European Union Tobacco Markets Austerity Defined

The Current NGP Environment Seems to be Deteriorating

Imperial Brands Develops NGP “Belief System”

Steps in the Elevation of Tobacco Culture in India

Leaf News