Tobacco International - September 2019 by Tobacco International magazine

The authority on the tobacco industry since 1886 September 2019

Bad Summer

for Vaping Is the Vaping Revolution Running Into Roadblocks? U.S. LEAF TAKES A HIT FROM HURRICANE DORIAN

UKRAINEâ&#x20AC;&#x2122;S APPEAL FOR GLOBAL TOBACCO MAJORS

A TOBACCO FOR THE FUTURE IN INDIA

BAT CREATES A MORE EFFICIENT COMPANY

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SEPTEMBER 2019

TI TABLE OF CONTENTS 14

A LOCKWOOD PUBLICATION

The authority on the tobacco industry since 1886 September 2019

Bad Summer

for Vaping Is the Vaping Revolution Running Into Roadblocks? U.S. LEAF TAKES A HIT FROM HURRICANE DORIAN

UKRAINE’S APPEAL FOR GLOBAL TOBACCO MAJORS

A TOBACCO FOR THE FUTURE IN INDIA

BAT CREATES A MORE EFFICIENT COMPANY

ON THE COVER Bad summer for vaping: Is the vaping revolution running into roadblocks? See Bob Crew’s analysis beginning on page 14.

Photo: Bigstock-Eshma

FEATURES 14

A Bad Summer for Vaping: it was one bad headline after another, but the worst might have been the first. By Bob Crew and the TI Staff

24 In India, Traditional Methods Lead to a Tobacco for the Future: An ”organic” type could have a role to play. By Sunitha Kolaventy

DEPARTMENTS 8

Ukraine’s Appeal for Global Tobacco Majors: Very low prices are the key. By Eugene Gerden

28 BAT’s Plans to Create a More Efficient Company: A reduction in force is the first step. TI Staff Report

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6 TOBACCO INTERNATIONAL SEPTEMBER 2019

Editorial

10 TI Digest 30 Leaf News 34 Calendar, Advertiser Index To reuse Tobacco International material, ISSN: 0049-3945 (print), ISSN: 2331-8481 (online), access www.copyright.com for the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. 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

Is the End in Sight For Vaping?

Christopher Bickers PRODUCTION COORDINATOR

he rollercoaster ride upward that vaping has experienced so far may be headed for a precipitous plunge downward, if the events of the past summer are any indication. City after city, state after state, country after country have banned vaping in one form or another. Usually it has just been the flavored versions but sometime the ban has gone across the board. One wonders if this couldn’t have been predicted back in June when the city of San Francisco proposed its ban on vaporizers, which because of the legal requirement for confirmation by the state legislature should probably be referred to as a moratorium. TI correspondent Bob Crews analyzes the possible fallout of the Ban on the Bay in “A Bad Summer for Vaping” on page 14. See also the report on the response of Indian tobacco producers to their government’s full-scale ban on e-cigarettes on page 32 in Leaf News. Among our other stories this month: Who would have thought the Slavic country of Ukraine would become a significant player in the European cigarette trade? But that is what correspondent Eugene Gerden reports in “Ukraine’s Appeal for Global Tobacco Majors” on page 20. The changing conditions on the tobacco market have motivated British American to take steps to render their operation more efficient, including a substantial reduction in staff. See “How BAT Plans to Create a More Efficient and Focused Company” on 28. This could prove to be an upcoming trend, as Japan Tobacco International also plans a reduction in force. See “Major Staffing Cuts At JTI” on page 13 (part of TI Digest). Back to the future? India has attacked the problem of declining yields and soil deterioration by reassessing their traditional tobacco-growing methods. Good results have occurred, including the development of an “organic” type of tobacco that could provide a new market for growers. This research has been directed by the Tobacco Board of India, and the executive director of that organization, Sunitha Kolaventy, gives a complete report starting on page 24. We hope to have more on exciting trends in Indian tobacco in future issues. Finally, you will be interested to learn about recent market developments in Armenia, Australia and Morocco, along with numerous other subjects in TI Digest, beginning on page 10. And many of you will be intrigued to get facts and figures on Hurricane Dorian, which caused serious damage on tobacco in the Carolinas in the United States. You can find that report on page 30 in Leaf News, as well as short reports on Malawi Canada and Paraguay, among others. See you next month.

Melinda Ayala DIRECTOR OF EXHIBITIONS

Frank B. Schuetze ACCOUNTANT

Roxanne Cordova Melendez accounting@lockwoodpublications.com

CONTRIBUTORS INTERNATIONAL TOBACCO Dr. Iqbal Lambat (ISTANBUL, TURKEY) ECONOMIC COLUMNIST John Parker (RICHMOND, VIRGINIA) REGIONAL

Mumtaz Ahmad (ISLAMABAD, PAKISTAN) Diamantis Chras (PIRAEUS, GREECE) Bob Crew (LONDON, ENGLAND) Eugene Gerden (MOSCOW, RUSSIA) Guido Jungbluth (SANTA CRUZ DO SUL, BRAZIL) Manfred Körner (HAMBURG, GERMANY) M. Rifaat Naguib (CAIRO, EGYPT) Vladislav Vorotnikov (MOSCOW, RUSSIA)

ADVERTISING REPRESENTATIVES Robert M. Lockwood TEL: + 1-212-391-2060, ext. 111 EMAIL: robert@lockwoodpublications.com EUROPE

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

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

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EDITORIAL editor@tobaccointernational.com

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Volume 19, No. 6 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 SEPTEMBER 2019

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TI DIGEST ARMENIA Cigarette Production up 9.5 Percent

SOUTH AFRICA BAT to Buy Out Twisp johannesberg—British American Tobacco (BAT) has received approval from the South African Competition Commission for the acquisition of Twisp, a leading South African vaping products company. The transaction is expected to complete in early Q4 2019. Twisp is the largest, multi-channel distributor of vaping products and flavors in South Africa. It has close to 70 dedicated stores nationally in prime locations, nationwide retailer distribution and a modern e-commerce platform, and has become the number one destination for adult consumers looking for potentially reduced-risk products in South Africa. BAT leads the vaping category in Europe and has a strong presence in the US. This acquisition allows BAT to expand its geographical presence in a key market with Twisp’s portfolio of innovative potentially reduced-risk products. It also expands BAT’s existing consumer engagement strategy through ownership of an increasing retail footprint. Twisp’s retail outlets will increase BAT’s existing retail footprint of 110 outlets in the UK, around 100 outlets in Germany, and 636 outlets in Poland. Kingsley Wheaton, Chief Marketing Officer, British American Tobacco, said: “Twisp in South Africa brilliantly complements our well-developed existing New Category retail footprint in Poland, the UK and Germany.” This footprint is of strategic importance to BAT’s future, says Top: A sampling of Twisp’s Signature eliquid flavours. Above: The first Twisp store opened in Wheaton. “It allows us to develop Montana Park, Pretoria, South Africa in 2016. direct-to-consumer relationships, gain substantial consumer insight and the ability to fast pilot and test new product lines from our New Category brands. “Consistency in this retail footprint will be critical for consumer navigation, and the roll-out of a homogeneous retail branded proposition has already commenced in Europe.”

10 TOBACCO INTERNATIONAL SEPTEMBER 2019

yerevan—Armenia saw an increase in tobacco production in the first seven months of 2019, the latest official statistics show, according to a report from Panorama, the Armenian news service. The country produced a total of 17 million 69.5 thousand units of cigarettes from January to July, up by 9.5 percent from the same months of 2018, when the output stood at 15 million 582.4 thousand units. As a result of the growth, the cigarette production share in Armenia’s processing industry made up 14.4 percent in the reporting period. According to statistics, more than 50 percent of Armenian men and almost four percent of women above 16 years of age are smokers.

AUSTRALIA World Record Price Per Pack sydney—The average pack of cigarettes in Australia has reached a world record of $35, thanks to a recent 12.5 percent excise tax hike, according to the Daily Mail Australia. The federal Government has now hiked tobacco excise for seven consecutive years, with an average pack expected to cost $40 a pack by 2020.

CHINA Juul Vapes Disappear from Chinese Websites beijing—Juul Labs sales were halted on two websites in China shortly after the launch of the products in that country, according to press reports. No explanation was given, and no indication was given as to when they might return. These websites were the only marketing avenue for Juul in China. “While Juul products are not currently available on e-commerce Web sites in China, we look forward to con-

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TI DIGEST tinued dialogue with stakeholders so that we can make our products available again,” said a Juul spokeswoman. The two sites were reportedly JD.com Inc. and Alibaba Group Holding Ltd.’s Tmall. They had been selling Juul vaporizers along with refill pods. Some of the pods were in flavors such as mint, Virginia tobacco, mango and crème. One wondered if it was a coincidence that this happened in the midst of the vaping death panic in the U.S.

JAPAN Three New Versions of glo Heated Tobacco Products Launched tokyo—British American Tobacco has introduced three new products from its glo brand of heated tobacco products in Japan. The products are: • glo Pro, the most advanced heated tobacco product yet to be introduced, BAT says. It is powered by a brand-new technology—induction heating—and that technology has been significantly miniaturized to deliver a heat not burn experience with taste satisfaction and rapid heating for quicker taste release. glo Pro will be available in Japan from October. • glo Nano is the slimmest device among glo products and gives greater convenience for on-the-go use than ever before. Enhanced design and reduction in size versus the existing products ensures there is no compromise on taste satisfaction. glo nano will also be available in Japan from October. • glo Sens was launched in August in South Korea and Japan. glo sens takes a radically different approach to heated tobacco, combining vaping technology with real tobacco. It is designed to deliver a totally new, flavor experience for consumers who have not yet found a satisfying option among alternative products to cigarettes. All the glo products heat, rather than burn, tobacco, producing no ash, less smell, and an aerosol that contains significantly less toxicants than cigarette smoke. They have been designed with a focus on choice and customization to appeal to varying consumer preferences. “We firmly believe in choice,” said Kingsley Wheaton, BAT’s Chief Marketing Officer. “We want adult smokers to find the right alternative product for them—and it is great that over nine million consumers have already chosen one of our potentially reduced-risk products.”

12 TOBACCO INTERNATIONAL SEPTEMBER 2019

But the company is, however, committed to continued product innovation in this space to increase these numbers and encourage as many adult smokers as possible to choose a product with reduced-risk potential instead of continuing to smoke, he said. “The launch of these new products is a clear sign of how technological innovation is driving fundamental change in our business and the products we are able to offer our consumers,” he said. “These products are based on cutting-edge, brand new THP technology, and we are confident that they will provide our consumers with more satisfying options when looking for alternatives to cigarettes.” There are further expansion plans for these products in the remainder of the year and into 2020.

MOROCCO Contraband Increases rabat—The penetration rate of contraband cigarettes in the domestic market has reached 5.23 percent in 2019. A report in Morocco World News said that at a September meeting of the National Commission Against Cigarette Smuggling, results were presented on the prevalence of contraband cigarettes. This rate increased compared to 2018, when it was only 3.73 percent. However, the rate decreased compared to 5.64n 2017 and 7.64 percent in 2016.

SOUTH AFRICA A Controversial Smoking Bill cape town—The draconian measures included in the federal anti-smoking bill now in the hands of Parliament (see Tobacco International, June 2019) seem to have attracted some opposition from at least one unlikely party. Dr Kgosi Letlape of the Africa Harm Reduction Alliance said in a recent radio interview that parts of the anti-smoking bill may be too restrictive. “There has to be a measure of know-

ing what our Constitution says, and people have their rights” [to smoke or not to smoke!]. One part he referred to was the harsh jail time or fines that could be imposed under the proposed new law, which recently ended a period of public comment and is in the hands of the legislature. If you were caught smoking in banned areas, you could receive a fine or prison time of up to three months, while those found guilty of manufacturing or importing tobacco products which do not meet the new requirements and existing standards could face a fine and imprisonment of up to 10 years. Some of the other striking changes that the bill would introduce include: • A zero-tolerance policy on in-door smoking in public places (including the removal of designated smoking areas in restaurants); • A ban on outdoor smoking in certain public places; • The removal of all signage on cigarette packaging aside from the brand name and warning stickers; • Cigarettes may no longer be publicly displayed by retailers.

SWITZERLAND Major Staffing Cuts at JTI geneva—Japan Tobacco International (JTI) is planning to reduce its staff by 3,720 employees or six percent of its total workforce over the next three-

years in a restructuring program, according to SWI swissinfo, a service of the Swiss Broadcasting Corporation. A total of 268 positions will be eliminated here in JTI’s headquarter in Geneva. About 900 employees will remain at the Geneva office. JTI has reportedly said it is committed to keeping its headquarters in Geneva. But it will concentrate its resources in the future on Warsaw, St Petersburg and Manila. Declining sales, especially in Japan, have hurt the company’s bottom line in recent years.

UNITED STATES Pyxus CEO: Bans on Vape Flavors Aren’t the Answer morrisville, n.c—Bans and outright restrictions of an adult’s use of flavors in e-liquid products are misguided and not based on scientific research, said Pieter Sikkel, President, CEO and Chairman of Pyxus International, Inc. said in September. “A s ma nu facturers and marketers of e-liquids, an adult-use product, ou r subsid i a r ie s and affiliates recSikkel ognize the unique responsibility in bringing nicotine products to market and are committed to responsible marketing practices,” he said. He insisted that the companies that Pyxus works with recognize the seriousness of youth access to e-liquid products and support responsible efforts to address this issue. The fact is, e-liquids are intended only for responsible adult consumption. He said, “Like other adult products, the [regulatory] effort should be focused on educating and preventing underage access to all e-liquids rather than restricting the types of products legal age adults can and do enjoy today.”

SEPTEMBER 2019 TOBACCO INTERNATIONAL

VAPING

A Bad Summer for Vaping It was one bad headline after another, but the worst might have been the first one: The Ban on the Bay in San Francisco. By Bob Crew, London Correspondent lectronic cigarettes took a beating from June to September, with the discovery of THC contamination, Michigan’s ban on flavored e-cigarettes and the President Trump’s announcement that vaping has problems and he thinks something has to be done about them. But the Ban on the Bay back in June started it all off, and there are still some lessons to be learned from it. TI Contributor Crew shares his insights as to the attempted prohibition of vapes last June in San Francisco. The San Francisco, Cal., board voted (unanimously) in June to seek a ban on local stores and other retail outlets from selling vaporizers. At the

same time, the board made it illegal for online retailers to deliver to addresses in the city. The ban did not go into immediate effect. It has to be supported by asyet unwritten legislation, and that is expected to take seven months under Californian state law. In that time, there could be legal challenges; You would certainly expect one to come from Juul Labs, which has been embarrassed by this action taking place in the city that is Juul’s corporate home. Juul has responded that an e-cig ban will drive smokers back to less healthy tobacco-cigarettes and also “create a thriving black market.” But San Fran-

14 TOBACCO INTERNATIONAL SEPTEMBER 2019

cisco’s Mayor, London Breed, has said that she will sign off on the proposed legislation come what may, and she has been praised for this. Anti-vaping activists argue that e-cig firms are deliberately targeting young people by offering them flavored products designed to appeal to them, whilst others contend that more scientific investigation into the health effects is needed. There is also the objection that vaping encourages young people to switch to cigarettes when they might otherwise quit smoking altogether. But the industry is waiting for evidence to support this. FDA Paved the Way Earlier this year, the U.S. Food and Drug Administration (FDA) issued newly proposed guidelines for giving e-cig companies until 2021 to apply to have their e-cigarette products evaluated. So it is perhaps hardly surprising that there is still some question and/ or concern about the possible health effects of vaping, seeing as the FDA has

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VAPING

London Breed, the self-proclaimed “phenomenal” mayor of San Francisco in the American West.

made it clear that it is still not sure, and needs more testing and evaluation. The FDA has paved way and provided a very convenient excuse for the City of San Francisco (and others in due course) to legitimize its concerns. As a result of which, there is now a stalemate situation between e-cig providers and the critics who are out to get them, and that will continue until 2021.

paigned for by the San Francisco’s City Attorney, Dennis Herrera, who has praised the legislation. He has declared that it is only necessary because of what he has described as an otherwise “abdication of responsibility” by the FDA in regulating e-cigarettes. “T h i s tempora r y morator iu m wouldn’t be necessary if the federal government had done its job,” says Herrera. “E-cigarettes are a product that, by law, are not allowed on the market without FDA review. For some reason, the FDA has so far refused to follow the law. If the federal government is not going to act, San Francisco will.” He bragged of the courage shown by his board. “This is a decisive step to help prevent another generation of San Francisco children from becoming addicted to nicotine,” he says. Tobacco Deaths According to the U.S. Center for Disease Control and Prevention, the number of U.S. teenagers who admitted using nicotine products has risen from approximately 36 percent in 2018, and

Although Juul has previously said that it supports cutting vaping among young people, this has been with the proviso that its agreement comes only in conjunction with tougher measures generally to stop them accessing regular cigarettes as well, not measures aimed only at e-cigs alone. There will be a lingering vaping cloud hanging over the head of vapes and e-cigs and casting doubts about their future in this way. Let’s not forget the enormous investment that has been made in e-cigs as an alternative to tobacco products. Well, as the song says, the show is not over until it’s over and it remains to be seen if the lady mayor will put investors off. Her proposed ban has been cam-

this has been attributed in part to a growth in e-cigarette use. Although Juul has previously said that it supports cutting vaping among young people, this has been with the proviso that its agreement comes only in conjunction with tougher measures generally to stop them accessing regular cigarettes as well, not measures aimed only at e-cigs alone. Juul’s small-vaping device—that is

16 TOBACCO INTERNATIONAL SEPTEMBER 2019

a bit longer than a flash drive—reportedly has about 70 percent of the U.S. vaping market. So there are big bucks at stake here for Juul and its investors. Juul’s spokesman, Te Kwong, has warned full prohibition will: •

• •

drive former adult smokers who successfully switched to vapor products back to deadly cigarettes, deny the opportunity to switch for current adult smokers, and create a thriving black market instead of addressing the actual causes of underage access and use.

Juul has already taken the most aggressive actions in the industry to keep its products out of the hands of those under age. But traditional tobacco products will “remain untouched by this legislation, even though they kill 40,000 Californians every year,” said Kwong. Logic, at least, would appear to be on his side, not that logic has done him or Juul any legislative good thus far! Juul is 35 percent-owned by Altria, of course, which reports it has already withdrawn popular f lavors— such as mango and cucumber—from retail stores. It has also closed its social media channels on Instagram and Facebook promoting e-cigs to the young and under-aged. But as we see, the City of San Francisco and its officials are out to get them and their products just the same! E-Cigs in Danger of Extinction Clearly, these alternative smokes could all go up in vapor before long, if the City of San Francisco has its way in California and carves a path to other states for a spread of anti-vaping e-cig legislation By fanning the anti-vaping flames in California during this year’s hot summer, the Mayor and City Attorney of San Francisco obviously hoped for a brush fire with a health purpose that

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VAPING would wipe out e-cigs once and for all in California. And perhaps at the same time, their conflagration would spread to other states as well, where there is already plenty of anti-tobacco and anti-vaping sentiment. All of that could of course lead to e-cig sales and profits suddenly be extinguished. Not only is this alarming for the e-cig producers and their investors, but for those who care about the ill-effects of the black market that will certainly appear in their absence. If these

e-cig producers do not make haste and mount a legal challenge to make their case loud and clear—to save the day for them and their profitable products and to keep the black marketeers out as well—one wonders why not? The issue needs to be pounded big time. And perhaps turn the anti-vapers’ conceit on its head: Are young and/or under-aged young people really better served by an unregulated black market, health wise and otherwise, than a legalized and controlled market?

Other Hits that Vaping Took This Summer THC and Vaporizers: A Deadly Combination On 6th September 2019, the U.S. Food and Drug Administration (FDA) issued a statement in response to recent reports of respiratory illnesses following the use of vaping products. This statement included a recommendation that consumers should “avoid buying vaping products of any kind on the street, and to refrain from using THC oil (tetrahydrocannabinol, the psychoactive component of the marijuana plant) or modifying/adding any substances to products purchased in stores.” British American Tobacco (BAT), one of the largest vapor companies, responded through its Director of Scientific Research, Dr. David O’Reilly. “We take our consumer safety responsibilities very seriously. We apply industry-leading standards of quality and safety testing to the way we develop and manufacture our products all around the world. “Every single ingredient and component in these products has been scrutinized by our toxicologists for their suitability for vaping.

Consistent with this, oils containing THC and Vitamin E Acetate are not, and have never been, added to our vaping products. “These tragic events appear to be a new phenomenon linked to liquids that were not sourced from reputable manufacturers and which contained ingredients, including THC and Vitamin E Acetate, which we do not use.” Effective regulation and enforcement of this type of product will be very important to ensure product safety, he said. BAT fully supports the FDA’s view that vapers should always: • Source their devices and liquids from reputable manufacturers, • Avoid modifying or adding substances to the products they purchase and, • Should use the devices only as the manufacturer intended. “We are monitoring the situation in the U.S.,” O’Reilly said. “[We] will work closely with all relevant public health authorities around the world such as the FDA, the Centre for Disease Control and Prevention and Public Health England.”

18 TOBACCO INTERNATIONAL SEPTEMBER 2019

Flavored Vape Ban: A Phenomenal Mistake? A sympathetic cheer now from everyone in the industry in support of those who speak for vaping. Let us hope we soon see them confront head-to-head the lady mayor of San Francisco. She proudly declares that she is a ‘phenomenal woman.’ But our side should ask if she is not making a phenomenal mistake with regard to a very unhealthy black market for young and under-age smokers.

E-Cigarettes “Trumped” U.S. President Donald Trump said on September 11 that there is a problem with vaping among young people. “We’re going to have to do something about it,” he said. He instructed Alex M. Azar II, the secretary of Health and Human Services, to devise a plan within the coming weeks for removing most flavored e-cigarettes from the market. “It will take several weeks for us to put out the final guidance that will announce all the parameters around the enforcement policy, and then there will likely be about a 30-day delay to effective date,” Azar said. “At that point all flavored e-cigarettes other than tobacco flavor would have to be removed from the market.” Michigan’s Vape Ban Michigan became the first American state to ban the sale of flavored vaping products after the state’s department of health and human services declared youth vaping a public health crisis. The ban might go into effect by the end of 2019, and it could last for up to a year. Renewal might be possible if the state legislature approved.

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UKRAINE The Lviv Tobacco Factory, whose aggressive marketing techniques have attracted criticism from global tobacco manufacturers.

High Demand Makes Ukraine Attractive to Global Tobacco Majors Prices in its local market are among the cheapest in all of Europe? By Eugene Gerden, TI Russian Correspondent lobal tobacco producers are making moves toward strengthening their positions in the Ukrainian tobacco market. They are attracted by the recent change of power in the country and the existing high demand for tobacco products among the local customers. Recent statements of producers and industry analysts suggest that in recent years, Ukraine has become one of the most attractive post-Soviet states for doing business for global tobacco majors, many of which were able to

significantly increase their profits from the local market. Favorable legislation One of the reasons for this was the liberal anti-tobacco legislation. Although the excise tax on tobacco products has been regularly increasing in Ukraine since 2008, at present, prices in its local market are among the cheapest in the whole Europe. According to Konstantin Krasovsky, head of the department of tobacco control of the Ukrainian Ministry of

20 TOBACCO INTERNATIONAL SEPTEMBER 2019

Health, global tobacco producers have perfectly adapted to the realities of doing business in Ukrainian, implementing their pricing policies. “This is mainly reflected by the gradual increase of prices for their products,” he says. “The companies simply calculated that an immediate increase of prices might force local customers to consider stop smoking. However, in the case of gradual increases, the growth of a final price may go unnoticed by the majority of customers.” Decline in smokers The last year when a package of anti-tobacco laws was approved in Ukraine was 2012. At that time, the local parliament (Vekrkhovhnay Rada) imposed a ban on the advertising of cigarettes in the country. In addition, it decided to prohibit smoking in restaurants, and it obliged producers to place health warn-

UKRAINE ings on cigarette packs. That resulted in the decline of the number of smoking people in the country. However, the situation has changed in recent years, and there has been

In the May, Parliament had already considered an anti-tobacco bill, which was supposed to introduce additional restrictions on the doing of tobacco business in Ukraine, such as placing of

growth in demand for smoking in the country. That was partially due to efforts taken by global producers to more actively promote their products in the local market. According to a recent survey conducted by the Kiev International Institute of Sociology, about 42.2 percent of men and 9.4 percent of women regularly smoke in Ukraine at present. Analysts expect these figures may further grow in the next several years, as the demand for smoking in Ukraine remains stable. E-Products Introduced According to Tatyana Andreeva, Ph.D. Medicine and one of the Ukrainian leading anti-tobacco activists, “In order to prevent Ukrainians from leaving off smoking, global majors have recently introduced new e-products to the market, which are positioned by them as ‘less harmful’ or helping to stop smoking.” Andreeva has also said some producers used the same techniques in the U.S., without success. “While this is not proven, the FDA had banned Philip Morris International in promoting iQOS to indicate that this product is less harmful. We believe a similar ban should be imposed in Ukraine.” In the meantime, the Ukrainian Parliament and the local government are aware of the current weaknesses of the domestic anti-tobacco legislation and plan to strengthen it.

cigarettes on shop windows and stalls and the ban on smoking in the buildings of offices, enterprises, hotels, hostels and train stations. In addition, the new law should have created conditions for the resuming of checks in restaurants and cafes into allegations of a breach of anti-tobacco legislation. Finally, the bill involved the introduction of a single penalty for smoking in the wrong place, up to UAH 340 (US$13.47).

Photo: GBS Brand Solutions

However, the situation has changed in recent years, and there has been growth in demand for smoking in the country. That was partially due to efforts taken by global producers to more actively promote their products in the local market. The key? Price The price factor remains important for Ukraine, considering low purchasing power of local customers. One producer, which in recent years has been able to seriously compete with global producers is the Lviv Tobacco Factory. At present, sales of the company in the domestic market remain stable, despite a relatively limited range. In recent months, the business of the Lviv factory

A couple of months ago representatives of major global producers asked the Ukrainian government to raise the minimum sale price for cigarettes in the local market. According to their plans, the adoption of such initiative should have withdrawn local tobacco producers from the market. Bill blocked Still, after its consideration in the Parliament, it was blocked, which became mainly due to strong opposition from the Ukrainian tobacco lobby. In contrast to neighboring Russia, where the share of global majors in the local tobacco market is close to 100 percent, Ukraine still experiences some competition from local producers. As a rule, most of these companies operate in the low-priced segment of the market and can offer their products at prices significantly lower than those of global majors.

22 TOBACCO INTERNATIONAL SEPTEMBER 2019

has been faced with a number of attacks, which, according to some local analysts, were mainly initiated by some of their global competitors and affiliated with them local corrupted officials. For example, a couple of months ago representatives of major global producers asked the Ukrainian government to raise the minimum sale price for cigarettes in the local market. According to their plans, the adoption of such initiative should have withdrawn local tobacco producers from the market. However, this proposal was rejected by the government.

A Passion For Excellence

FCV BURLEY ORIENTAL

Finest leaves for perfect blends

info@staragritech.com www.staragritech.com

INDIA

Photos: Copyright BAT

Left: Growers cultivate intercultural tobacco with country oxen. Below: Smt. K. Sunitha, Executive Director and CEO, Tobacco Board of India, leads a tour of natural farming trials.

initiative to popularize STP practices in FCV tobacco cultivation in India for overall development of the Tobacco Industry. A holistic approach is being adopted by the Tobacco Board of India to achieve the ultimate aim of sustainability.

A Look Back to Traditional Methods to Produce a Tobacco for the Future A niche ‘Organic’ brand for Indian tobaccos could take a new place in the country’s offerings. By Sunitha Kolaventy, Executive Director of Indian Tobacco Board nvironmental consequences of commercial Agriculture have been taking a toll on natural resources, in India, calling into question the sustainability of farming. Among the specific practices:

E •

•

Excessive use of chemical fertilizers reduced soil fertility to almost zero in intensively farmed regions, degrading the soil carbon levels and soil microbes’ population;. Excessive siphoning of ground water for irrigation uses are rendering aquifers dry; Chemical pesticides are becoming extremely pervasive in the environment, contaminating the entire food chain; Soil erosion and water depletion are leading to more desertification.

The world tobacco industry has embraced the concept of ‘Sustainable Tobacco Production’ (STP) in a big way recently. And sustainability is an important factor that now runs through the entire supply chain and significantly contributes to business success. (STP) ensures efficient production of quality tobacco under conditions that limit the negative impact on the environment, and in a manner that improves the socio-economic conditions of the people and their communities in the tobacco production areas. Tobacco Board has taken up the

Add to all this climatic change, and the ultimate tipping point is increasing the production risks year after year.

24 TOBACCO INTERNATIONAL SEPTEMBER 2019

Green Drive Within the framework of ‘Sustainable Tobacco Production’, The Indian Tobacco Board has been working to create a green and sustainable future in tobacco-growing areas of Andhra Pradesh and Karnataka. It is called ‘Tobacco Green Drive,” and it is a group of initiatives that started in 2018-19. The first is improving soil health through Green manuring. The soils in India’s FCV tobacco-growing regions are poor in organic carbon and available nitrogen due to continuous tobacco cultivation and the tropical climatic conditions. Grower awareness programs are being conducted on the necessity of soil health improvement and organizing supply of green manure seed to farmers in coordination with State Departments of Agriculture in Andhra Pradesh and Karnataka. The persistent efforts of the Board have resulted in an increase in the area under green manure crops over the past few years. In 2019-20 crop season, following a special drive and encouragement

to use ‘Dry Sowing’ techniques, an area of 8,000 ha was covered under green manure crops in the state of Andhra Pradesh. From that point, the industry looked at Organic Tobacco. The areas of FCV tobacco production in general have a continuous tobacco cropping system. There are limited options for crop rotation due to limited land-holding size of the farmers, and tobacco is the main source of livelihood in these areas. Continuous cropping has resulted in stagnation/decline of crop yields in some zones. Physiological disorders such as false ripening of the tobacco leaves is also on the rise due to soil compaction and degradation of soil structure. In view of the climatic change, tobacco farmers in Prakasam and Nellore districts have faced drought continuously for the last five years. This impacted the yields and quality of tobacco grown resulting in low returns and losses in cultivation. The farmers in Karnataka are also facing crop losses because of either drought or excessive rains. Thus, the increasing crop and market risks in high investment FCV tobacco farming are often resulting in farmers’ distress. In this background, Natural Farming offers resilience and much needed sustainability to tobacco cultivation. To improve the wellbeing of 90,000 registered FCV tobacco farmers in the states of Andhra Pradesh and Karnataka and to ensure supply of safe product to customers, the Tobacco Board has introduced the practices of Natural Farming in FCV tobacco cultivation. This eco-friendly system has been introduced in FCV tobacco cultivation for first time in India in 2018-19 in Andhra Pradesh. The Tobacco Board takes the distinction of pioneering the introduction of such a unique system in FCV tobacco cultivation in the world. Under this system, the crop is grown using natural formulations prepared from cow dung, cow urine, pulses and jaggery for improving the soil health. Concoc-

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

SEPTEMBER 2019 TOBACCO INTERNATIONAL

INDIA

WHEN FCV TOBACCO IS GROWN UNDER NATURAL FARMING COMPARED TO CONTROL PLOTS PARAMETER

NORTHERN LIGHT SOILS

SOUTHERN LIGHT SOILS

SOUTHERN BLACK SOILS

Yield per ha. (kgs)

1,998

2,054

1,448

1,478

1,645

1,728

Bright

67.55

56.27

50.81

29.08

23.94

24.43

Medium

21.04

30.20

23.47

27.24

44.62

32.35

Low

11.41

13.53

25.72

43.68

31.44

43.22

Gross returns per ha.

307,333

307,058

206,347 179,851 216,527 208,639

Cost of production per ha

220,697

245,271

155,063 146,468 191,128 186,036

61,787

51,284

Grade out turn (%)

Net returns per ha. 86,636

tions prepared from natural products like green chillies, neem leaves and garlic are used for protecting the crop from pest and diseases. Use of chemical fertilizers and pesticides are totally eliminated in the system. The protocols evaluated by the experts of Department of Agriculture, Government of Andhra Pradesh and Karnataka state have been followed to educate the growers extensively, regarding the preparation of formulation and concoctions and the adoption of Natural Farming practices in all stages of crop growth. Natural Farming was taken up on a

33,382

25,398

22,657

The growers who have taken up Natural Farming in tobacco cultivation were trained by ZBNF resource persons of Govt. of Andhra Pradesh. The growers and Tobacco Board field staff were also sponsored for a 10-day training program conducted by Each of these growers were attached to Community Research Persons (CRP) of AP ZBNF for continuous guidance, education and trouble shooting. One Field officer of the Board and a Field assistant are continuously monitoring the ZBNF cultivation of tobacco and keeping a record of all activities and growth parameters.

Natural Farming was taken up on a pilot basis in 2018–19 in each of its 18 Auction platform areas in 18 plots. The specific form is called Zero Budget Natural farming (ZBNF). pilot basis in 2018-19 in each of its 18 Auction platform areas in 18 plots. The specific form is called Zero Budget Natural farming (ZBNF), which was founded by Shri Subash Palekar. 21 Registered FCV tobacco growers took up ZBNF tobacco cultivation on about 75 acres, and ZBNF tobacco cultivation trials were also taken up in the research farms of National research institutes like Central Tobacco Research Institute (CTRI) at Guntur and Kandukur in Andhra Pradesh.

•

An analysis of the performance of the trial plots vis-à-vis the control shows that per hectare yields are on par with control plot and there is no significant variance; This was as expected since this was the first year of switch over to organic mode and a turnaround time of at least three years would help achieve substantial yield improvements; With respect to the quality of the product, the tobacco from Natural Farming

26 TOBACCO INTERNATIONAL SEPTEMBER 2019

plots was much superior to the control. The Natural Farming plots yielded higher Bright grade outturn when compared to the control plots which were grown with chemical fertilizers; • Overall, net returns to the farmer were better than the control plots in most of the field trails. The Trade also came forward to pay 10 percent higher prices for the tobacco produced under ZBNF cultivation. Tobacco Board had held separate auctions for the ZBNF grown tobacco. Following the encouraging results of Natural Farming in Andhra Pradesh, Trials on Natural Farming in FCV tobacco cultivation will take place in 2019–20 Karnataka crop season. In Karnataka also trials were undertaken in each Auction platform jurisdiction in about 12 plots covering an area of 43.50 acres. The ZBNF trial was also taken up in the CTRI research farm at Hunsur to evaluate the cultivation scientifically. The crop grown under rain fed conditions in the trial plots of Karnataka under Natural Farming has performed well and yields are likely to be at par with Control Plots. The tobacco crop under this system was found to be climate resilient, as the crop did not get affected by heavy rains in Mysore. On the other hand, the crop grown under normal conditions using chemical inputs could not withstand extreme conditions. The objective of cultivating FCV tobacco following Natural Farming techniques is to produce organic tobaccos, which are totally free from chemical pesticide residues. By ensuring product integrity to world customers through production of compliant tobaccos, it’s hoped that a niche ‘Organic tobacco’ brand for Indian tobaccos in the international market will be created. Editor’s Note: Watch for more on advances in agronomy in Indian tobacco production in future issues of Tobacco International.

A Passion For Excellence

info@staragritech.com

www.staragritech.com

BAT

BAT offices in Brazil.

How BAT Plans to Create a More Efficient and Focused Company A drastic reduction in force is the first step. From Staff Reports ritish American Tobacco (BAT) announced on September 12 that it would take steps to simplify its business and create a “more efficient, agile and focused BAT.” 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. To enable better focus on key growth areas; faster decision making; greater management accountability and the elimination of duplicative activities, the proposals will:

• • •

reduce layers of management; create fewer, more accountable business units; leverage its Global Business Services activities more effectively; and

•

simplify all key business processes and ways of working.

This program, scheduled for completion by January 2020, envisages a reduction of around 2,300 positions globally. With the focus on simplification and removal of management layers, it is expected that over 20 percent of the senior roles in the organization will be affected. A consultation process is now under way with all staff who will be impacted. Jack Bowles, BAT’s new Chief Executive, said: “Since taking on the role of Chief Executive five months ago, I have been clear that I wanted to make BAT a stronger, simpler and faster organization and ensure a future fit culture. My goal is to oversee a step change in New Category growth and significantly simplify our current ways of working and business processes, whilst delivering long-term sustainable returns for our

28 TOBACCO INTERNATIONAL SEPTEMBER 2019

shareholders. This is a vital first move to help achieve these goals.” A program of this magnitude involves decisions that will be difficult. “But ultimately it is the right thing for our business.” He hoped that “BAT will be better placed to deliver on its target of generating £5 billion of revenues in New Categories by 2023/24 as a result of the program.” Response from investors was cautiously favorable. Bloomberg News analyzed the move by saying, “BAT has tempered the outlook for growth of smoking alternatives. The cost-saving program will help the company reach its goal of getting £5billion in revenue from new products by 2023 or 2024.” Russ Mould, investment director at AJ Bell investments, said, “[This] announcement represents a bold first step for new chief executive Jack Bowles. But he must hope the crackdown on vaping doesn’t see his growth ambitions run out of puff.” A Defense Against Underage Vaping On the same day that BAT’s reduction in force was announced, the chief marketing officer of BAT, Kingsley Jack Bowles, BAT CEO.

Wheaton, said his company plans to cooperate fully in efforts by FDA or other government agencies in keeping vaping out of the reach of underage consumers. “Given the tragic cases reported in the U.S. recently, we fully support the FDA’s efforts to ensure the safety of those consumers who use vaping liquids and devices,” said Wheaton. “As the world’s second largest vapor company, providing high quality products to more than 9 million consumers worldwide, we take our consumer safety responsibilities very seriously.”

A Blueprint for Compliance BAT’s subsidiary Reynolds American has acted aggressively in the USA to address the problem of youth access, he said: •

•

Vype, like all of BAT’s potentially reduced-risk products, utilizes only toxicologist-scrutinized ingredients and components.

Reynolds has developed and subsequently named its flavors to appeal to adult consumers rather than children. Reynolds age verifies through a third-party vendor that all potential online purchases are 21 or older. Reynolds participates in ‘We Card,’ an organization nationally recognized for retailer education and training for age-restricted products.

•

Reynolds funds ‘Right Decisions Right Now: Be Tobacco Free’ (RDRN), an evidence-based, independently tested youth tobacco prevention education program started in 1991 for use by middle-school educators, parents and community groups. If you Smoke or Use Smokeless Tobacco... your health is at risk. Tobacco use causes serious diseases including Cancer, Heart Disease and Stroke(1-4)

How to Say “NO” You’re in control of your decisions. Say “NO” and... • Walk away • Change the subject • Suggest something else • Add some humor • Reverse the pressure • Talk about the consequences • Give them a reason or explain why you said “no”

Your friends should not make your decisions – you should.

BE TOBACCO FREE

rightdecisionsrightnow.com

The educational resources listed or linked on this poster are provided as a convenience. R.J. Reynolds Tobacco Company (RJRT) is not responsible for the content of those materials. The statements and views in those materials do not necessarily represent the views of RJRT or its management. 1 3 4

CDC. Smoking & Tobacco Use. Fact Sheet-Smokeless Tobacco: Health Effects. Referenced 2018. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/smokeless/health_effects/index.htm 2 CDC. Smoking & Tobacco Use. Fact Sheet-Health Effects of Cigarette Smoking: Smoking and Cancer: Referenced 2018. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/health_effects/effects_cig_smoking/index.htm U.S. Department of Health and Human Services. The Health Consequences of Smoking: what it means to you. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office of Smoking and Health, 2004. Referenced 2018. www.cdc.gov/tobacco/data_statistics/sgr/2004/pdfs/whatitmeanstoyou.pdf. CDC. Smoking & Tobacco Use. Highlights: Smoking Among Adults in the United States: Coronary Heart Disease and Stroke. Referenced 2018. https://www.cdc.gov/tobacco/data_statistics/sgr/2004/highlights/heart_disease/index.htm 2018706533 ©2018 Right Decisions Right Now. All rights reserved.

•

Photo: rightdecisionsrightnow.com

BAT remains convinced that children should not use vapor products, he said. “We have had stringent measures in place to address this issue for some time. Accordingly, we share the FDA’s concern that the marketing of some flavors could resonate with children. At the same time it is hard to overestimate the role that the responsible marketing of flavors plays in helping adult consumers move on from combustible products to alternative tobacco and nicotine products.” BAT has invested billions of dollars in the research and development of its potentially reduced-risk products, he said. “The ingredients and components used in these products have been scrutinized by our team of 50 toxicologists for their suitability for vaping.” Consistent with this, BAT does not include oils containing THC or Vitamin E Acetate in these products.

Photo: wecard.org

Kingsley Wheaton, BAT CMO.

Reynolds currently has a purchase limit of US$200 per transaction. It plans to implement a more stringent limit of US$80 per week and three devices per quarter. Reynolds has implemented guidelines that restrict marketing and advertising for its vapor products: * No testimonials will be used by sports figures or celebrities or any person with special appeal to persons under 21 years of age; * No person appearing in any advertising materials shall be under age 25 or styled to look under age 25; * Content shall not include characters, images, or themes designed to target youth; * Content shall not be related to youth or youth-oriented activities; * Content shall not suggest that use of R.J. Reynolds Vapor Co. products is essential to social prominence, distinction, success or sexual attraction nor shall any content picture a person using any RJRVC products in an exaggerated manner; and * Content shall not depict persons participating in, or obviously just having participated in, a physical activity requiring stamina or athletic conditioning beyond that of normal recreation.

SEPTEMBER 2019 TOBACCO INTERNATIONAL

LEAF NEWS

Some tobacco only suffered leaf loss (left). But the whipping action of the intense winds caused a chemical reaction in the leaves that lead to premature ripening and subsequent loss of value (above). Both pictures were taken near Wilson, N.C.

UNITED STATES What Hurricane Dorian Did to the U.S. Tobacco Crop raleigh—The tobacco farmers of Eastern North Carolina and the Pee Dee section of South Carolina were wondering what they had done to deserve divine retribution. How else to describe three hurricanes in only 12 months? Dorian arrived in the Carolinas on September 6 and punished the tobacco in the field by blowing some fields flat, blowing leaves down in others, and generally whipping the remaining leaves so that they began a heightened ripening process that lead to leaf deterioration. These were the same effects that Hur-

ricane Florence had caused. But Dorian’s damage was much less, largely because Dorian only stayed in the tobacco-producing area for about a day. Only 10 to 15 percent of the S.C. tobacco crop (all flue-cured) was still in the field when Dorian arrived, said S.C.’s Extension agronomy agent responsible for the tobacco-growing area. “There was not much blowing off of leaves, but there was a lot of over-ripening due to the plant’s production of ethylene.” Farmers tried to harvest and barn what they could, but he predicted that three quarters of the tobacco that was in the field on the sixth would eventually be abandoned. If that occurred, we would

30 TOBACCO INTERNATIONAL SEPTEMBER 2019

be talking very roughly about a loss in the range or 20,000,000 pounds. In North Carolina, farmers were harvesting as fast as they could as of September 15. In recent years, the flue-cured harvest in this area has lasted until October 21 or later, but one Extension specialist predicted that all harvestable tobacco would be out of the field by October 1. That would reflect very hasty gathering to salvage as much leaf as possible from deterioration. To get the kind of leaf quality farmers here try to achieve, they would have needed until at least October 15, the specialist said. About 16 counties had at least some effect of Dorian. The worst damage was in the Coastal Plain, east and south of Raleigh. There was some damage in the northeast but considerably less. In the hardest hit areas, crops sustained enough wind damage that a complete loss of what remained was possible. What didn’t get blown off or blown flat was likely to turn loose from or die on the stalk. But in the Piedmont, Dorian had hard-

ly any effect, said an auction warehouseman in the Winston-Salem area. “We didn’t get much rain from Dorian,” he said on September 15. “As a matter of fact, we still need water.” Harvest is half complete in the Piedmont and will last into October. The Tobacco Growers Association of North Carolina issued an estimate that put the crop loss caused by Dorian in N.C. at 50 million pounds. That is based on the estimate that 60 percent of the crop remained in the field when the storm arrived and that 25 to 30 percent was destroyed or rendered unmarketable. How would it affect the market? “The demand is soft—there is too much production worldwide, and our U.S. leaf is challenged by the strong dollar relative to global options,” said the statement from the growers association. “We very likely had over produced our domestic acres already, so the 50 million destroyed in the storm brings us closer to actual demand. That isn’t to say we would not have sold the entire larger crop, but at what prices?”

Advice for Storm Struck Tobacco Growers Tobacco farmers were faced again with what seems to have become a perennial question each year in the Carolinas: Should they harvest hurricane-damaged leaf? “Give full consideration in advance to what you are about to harvest,” said Graham Boyd, executive vice president of the Tobacco Growers Association of N.C. “If it isn’t good quality going in the barn, it most certainly will not be good coming out. Poor quality [leaf] has already demonstrated it has no market value.” Carefully consider the costs associated with salvage harvesting your crop on a salvage basis, he said. “Why would you harvest severely damaged tobacco and spend 92 cents per pound to harvest, cure, bale and deliver it, only to have it rejected? We do not need this inferior quality competing with good leaf and hurting our posture for

MALAWI Competition Firm in Medium Quality Styles blantyre—Offerings at the burley market have predominantly consisted of medium quality flyings, lugs and cutters, as of August 23. There has been a gradual increase of leaf bodied style tobacco deliveries, but, this is still minimal, according to a report from Hail & Cotton. Competition remains firm in the medium quality lower stalk segment, with increased competition for medium to top quality leaf styles due to lack of availability. Low demand for gray and over handled styles has resulted in approximately 40 percent of “No Sales” on the auction floors. This has resulted in a slow through-flow of new offerings. About 70 percent of the Malawi crop had been marketed by late August.

the worlds ‘premium leaf’. And, you will lose revenue in the process.” Damaged tobacco with zero market value should be destroyed, he advised. Put a very sharp pencil on the numbers, he said. “If your insurance adjuster will release your acres, you may want to trust his evaluation of damage and stop spending on a crop that will result in increased negative returns.” But farmers who decided to harvest storm-damaged leaf were advised to re-initiate harvest as soon as possible since windblown leaves senesce (dry up and doe) quickly when hurricanes arrive later in the growing season. “Leaf holding-ability is often compromised due to the natural presence of the plant growth regulator ethylene, which hastens the ripening process,” said Matthew Vann, state agronomist for tobacco in North Carolina. “The best information available suggests that the optimum window for harvest is seven to 10 days after the storm clears.” Yield, quality, price and value were greatest when tobacco was harvested two days after the storm, he said. Following the first harvest timing, remaining plots were subsequently harvested every 10 days, which is the approximate amount of time required to complete a curing cycle. In the second harvest interval, cured leaf yield began to decline.

USDA Projects a Smaller Crop Even before Dorian passed through, the USDA’ Crop report of September estimates production in most tobacco states was continuing downward compared to last year. USDA’s numbers that fluecured production would total 304 million pounds, down three percent from last month and 10 percent from 2018 (but that will certainly be lower thanks to the hurricane). Burley production was expected to total 96.0 million pounds, down nine percent from the last month and four percent from last year. Among the individual states and types, with percentage change from 2018: FLUE-CURED—North Carolina, 236 million pounds, down six percent.·Virginia, 33 million pounds down 21 percent. Georgia, 18 million pounds down 33 percent. South Carolina, 17 million pounds, down 23 percent. BURLEY—Kentucky, 81 million pounds, up two percent. Tennessee, 6.4 million pounds, down 29 percent. Pennsylvania, 6 million pounds, down 31 percent. Virginia, 1.26 million pounds, down 16 percent. North Carolina, 640, 000 pounds, down 43 percent. OTHER TYPES—Fire-cured, 46.7 million pounds, down 20 percent. Dark air-

SEPTEMBER 2019 TOBACCO INTERNATIONAL

LEAF NEWS cured, 28 million pounds, up 7.7 percent. Pennsylvania seedleaf, 5 million pounds, down nine percent. Southern Maryland/Pennsylvania, 2.2 million pounds, down 28 percent.

U.S. Leaf Prices: Not Competitive richmond—“Flue-cured crop sizes were larger in several key origins this year,” said George Freeman, President/ CEO, of Universal Corporation. As part of his presentation of first quarter 2019 results in August, he said, “We believe that the supply of fluecured tobacco exceeds demand. As a result, we are seeing slower movement in flue-cured markets, soft demand, and pressure on margins.” But it is still very early, and some markets have not opened yet, he said. “In contrast to the flue-cured crops, burley crop sizes are coming in lower than expected, and we believe that burley supply is in line with demand.” Demand seems softer for U.S. tobacco, he said. Currently, U.S. tobacco prices are not competitive in the global marketplace. Additionally, there is pressure on export volumes from the suspension of purchases by China due to the current trade discussions, as well as consistent declining domestic consumption in the United States.

BANGLADESH Burley Attracts Export Buyers dhaka—The 2019 burley market had finished by early September. Demand was driven by the export market with an estimated 90 percent having been slated for export. Rangpur crop quality experienced an improvement on the previous year, due to favorable growing conditions. Market estimates indicate that there has been a green price increase of four percent in Manikganj and three percent in Rangpur.

Hail &Cotton calculated the crop at 20.6 million kilograms, up from 20 million pounds in 2018. The flue-cured market had also ended. It was characterized by heavy competition amongst manufacturers for domestic purposes, which resulted in a green price increase of an estimated five percent. Land and seedbed preparation have commenced for the 2020 season. Hail &Cotton calculated the crop at 76.7 million kilograms, up from 75 million pounds in 2018

CANADA No Problems Reported in Southern Ontario tillsonburg—Harvest had gotten under way in Southern Ontario by mid August. “There are no widespread problems reported to the Canadian Tobacco Research Foundation at this time,” said a report from Mitchell Richmond, CTRF’s Team Leader. “Currently, aphid and hornworm pressure seem to be very limited in most fields. To date, there have been no reports this season of blue mold in Ontario.” Based on past experiences, harvest might very well be finished by October 1.

DOMINICAN REPUBLIC Good Quality, Volume Down for Piloto Cubano, Olor, Criollo Crops santo domingo—The 2019 buying season is over and most of the Piloto Cubano/Olor/Criollo tobacco is now under fermentation. Total volumes are small due to the drought, at 4,000 metric tons, compared to 6,500 metric tons the year before. Overall quality is good, though leaves are smaller in size. In general, there will be a shortage of tobacco and therefore buying prices have increased heavily. On the other hand, this might encourage farmers to produce increased volumes of tobacco next season.

32 TOBACCO INTERNATIONAL SEPTEMBER 2019

INDIA Good Riddance to Vaporizers hyderabad—The recent ban on vaping in India will result in no loss to tobacco farmers, said an Indian growers association. That is because the nicotine in vaping liquid is not derived from leaf but from tobacco dust, said Murali Babu, General Secretary of The Federation of All India Farmers Association. “Tobacco dust, which is a residue produced while processing chewing and bidi tobacco, is used as raw material to manufacture nicotine,” he said. “No fresh quantity of tobacco is produced by farmers to extract nicotine.” “Even if fresh tobacco leaves are used, there is surplus availability [of leaf] to meet the demand for nicotine exports.”

PARAGUAY Criollo Crop Update ASUNCION —The 2020 crop is under way. In general, seedlings looked very good in August and were carefully treated against fungi, according to a report from Hail & Cotton. Farmers were experiencing cold, humid days and were awaiting some rain to be able to start transplanting. There is enthusiasm among tobacco growers because of excellent buying prices in the field. Also, other alternative cultivars are not as profitable compared to tobacco. Both combined will generate a larger planted area, and production is expected to increase, provided weather conditions remain normal.

ZIMBABWE Second Consecutive Record Marketings harare—For the second consecutive year, Zimbabwe’s flue-cured marketings set a record in 2019, 256 million pounds compared to 252 million pounds in 2018.

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2019 BUYERS’ GUIDE & GLOBAL DIRECTORY

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

ANGOLA

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

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

Consulting Knapp AG

XXXXXXX — XXXXXXX

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

A complete directory to the world of allied products and services utilized by tobacco product manufacturers, leaf processors, and tobacco growers in the course of their business operations, organized alphabetically by product or service. Refer to Section 3 for complete contact information for the desired company. Refer to the Advertiser Index on page 144 to locate a supplier’s advertisement.

Product Manufacturer Knapp AG Research & Development Knapp AG Trierenberg Holding AG Supplier Altesse Berndorf Band GmbH Delfort Group AG Dr. Franz Fuerstein GmbH Folial GmbH Knapp AG Kukla Waagenfabrik GmbH & Co. KG Mayr-Melnhof Karton Mayr-Melnhof Packaging International/ International Tobacco Packaging MWV/A MeadWestvaco Resource Osterreichische Zigarettenfilter GmbH Poettinger Entsorgungstechnik GmbH & Co. KG Poettinger Water Disposal Technology S & S Vertriebs - GmbH Schiff + Stern KG Trierenberg Holding AG

AZERBAIJAN

AAF international americanair filter, P.O. Box 35690, Louisville, Kentucky 40232-5690, United States. Tel: +1 502 637 0011, Toll free +1 888 223 2003. Fax: +1 502 637 0321, Toll free +1 888 223 6500. Email: info@aafintl.com. Web: www.aafintl.com. Business Type: Suppliers. Products: Dust Collectors, Electronic Cigarettes, Electronic Cigarettes. Abal Hermanos SA, Paraguay 1780, Montevideo 11800, Uruguay. Tel: +598 2 924 0915. Fax: +598 2 924 1732. Web: www.pmintl.com. Business Type: Cigarette Manufacturers, Product Manufacturers.

Leaf Dealer Aucana Marketing GmbH Logistic Equipment Knapp AG

Section 3: Contact Information

Section 2: Supplies & Services, Machinery & Equipment

Distribution/Product, Importer & Exporter Top Brands Weswaldi International

Armtabak d S C Cigar Manufacturer Knapp AG ETA (Empresa dos Tabacos de Angola), SARL Supplier Armenian Greek JV Masis Tobacco MV Co. Ltd Cigarette Manufacturer Trierenberg Holding AG Wholesaler/Distribution British American Tobacco Angola Knapp AG AUSTRALIA rter ETA (Empresa dos Tabacos de Angola), SARL Association AZERBAIJAN Product Manufacturer Supplier Tobacco Cooperative of Victoria . Ltd ETA (Empresa dos Tabacos de Angola), SARL Cigarette Manufacturer Cigar Manufacturer British American Tobacco Azerbaijan Altesse Imperial Tobacco Australia Ltd ARGENTINA BAHAMAS Cigarette Manufacturer Association Berndorf BandBritish GmbH American Tobacco Australia Camera de Tabaco Cigar Manufacturer Philip Morris International (Australia) Ltd Graycliff Cigar Co. Cigarette Manufacturer Delfort Group AG Distribution/Product, Importer & Exporter British American Tobacco Argentina Product Manufacturer Swedish Match Australia Goloteca Manufactura Argentina de Tabacos Graycliff Cigar Co. Dr. Franz Fuerstein GmbH Massalin Particulares SA Logistic Equipment Philip Morris Conveying (Aust) Pty. Ltd BANGLADESH Nobleza Piccardo SAICFolial yF GmbH Industrial Product Manufacturer Cigarette Manufacturer Leaf Dealer American Tobacco Australia Abul Khair Leaf Tobacco Co. Ltd AG British One ArgentinaKnapp SA Philip Morris International (Australia) Ltd Bangladesh Tobacco Industries Ltd . Ltd Alliance Bonpland Leaf SA (BLASA) British American Tobacco Bangladesh Supplier Coop. de Salta Co. Ltd Kukla Waagenfabrik GmbH & Co. KGB.A.T. Anzpac Services (Australia) Pty. Ltd Cooperativa de Tabacalera de Tucuman Ltda Husna Tobacco Pvt. Ltd FlexLink Systems Pt. Ltd Cooperativa de Tabacaleros de Corrientes Ltda Nasir Leaf Tobacco Industries, Ltd Industrial Conveying (Aust) Pty. Ltd Mayr-Melnhof Karton Cooperativa de Tabacaleros de Jujuy Ltda Innovia Films (Asia-Pacific) Pty. Ltd Distribution/Product, Importer & Exporter Cooperativa Tabacalera de Misiones Ltda Kamra International Pty. Ltd Abul Khair Leaf Tobacco Co. Ltd J. Felipe Ottaviano y Cia. SA Mayr-Melnhof Packaging International/ RothTech Pty. Ltd Nasir Leaf Tobacco Industries, Ltd Universal Leaf Tabacos SA Treofan Australia Pty. Ltd Leaf Dealer International Tobacco Packaging Abul Leaf Processer Khair Leaf Tobacco Co. Ltd Cooperativa de Tabacaleros de Jujuy Ltda AUSTRIA Bangladesh Leaf Tobacco Co. Ltd MWV/A MeadWestvaco Pipe Smoking Tobacco British American Tobacco Bangladesh Cigarette Manufacturer Resource Nobleza Piccardo SAIC y F B.A.T. Co. Ltd British American Tobacco Austria Osterreichische Zigarettenfilter GmbH Tobacco International Buyers’ Guide & Global Directory 2018 9 Advertisers appear in bold Poettinger Entsorgungstechnik GmbH & Co. KG Poettinger Water Disposal Technology S & S Vertriebs - GmbH Schiff + Stern KG Trierenberg Holding AG . Ltd Wholesaler/Distribution Knapp AG

Cigarette Manufacturer

• Multi-Platform Distribution • Digital Advertising

Acetate Tow see Filter Tow

Adhesive Applicators Fi-Tech, Inc. (United States) C.B. Kaymich & Co. Ltd. (United Kingdom) PAK-TEC, Inc. (United States) SPI Developments Ltd. (United Kingdom)

Vintero Corporation (United States)

Adhesives Baumer hhs GmbH (Germany) Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) FORBO-Swift Adhesives Ltd. (England) Forbo Swift Adhesives Ltd. (United Kingdom) Haynes Rubber & Supply Co., Lewis-Goetz (United States) H.B. Fuller Co. (United States) H.B. Fuller GmbH (Germany) Henkel & Cie AG (Switzerland) Henkel KG (Germany) Hitkari Trading Corporation (India) KneX Worldwide (United States) Mena Company for Adhesives Technology “Menatec” (Egypt) National Starch & Chemical GmbH (Germany) National Starch & Chemical Co. (United States) National Starch & Chemical Ltd. (United Kingdom) Pafra Systems Ltd. (United Kingdom) PAK-TEC, Inc. (United States) PJM Pujadas SA (Spain) Siag Chemicals Co. SAE (Egypt) STI Petofi Nyomda Kft. (Hungary) Titan Adhesives Co., Inc. (United States) Tuermerleim GmbH (Germany) Tutunski Kombinat A.D. Prilep - TKP (Macedonia) Upaco Adhesives Inc. (United States)

Acetate Tow

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)

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.

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

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

see Homogenized Tobacco Making Machinery

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

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

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

Base Paper

Accumen Technology, Watermeadow House, Watermeadow, Chesham, Bucks HP51LF, United Kingdom. Tel: +44 1 494 79 4633. Fax: +44 1 494 794 644. Personnel: Colin Bunting, marketing director; Frank Daugherty, sales director; John Evason, technical director. Business Type: Suppliers. Products: Weight Control Equipment.

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

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

Belt Fasteners

Mechanic Muller Vin Opico (Un Powell Ma Taylor Ma

Adhesive Applicators

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)

Fi-Tech, Inc. (United States) Sargent’s Sons Division (United States) V.I.T. SA (Greece) C.B. Kaymich & Co.ApronLtd. Pins (United Kingdom) Diamond Metal Screens Pvt. Ltd. (India) PAK-TEC, Inc. (United States) Art Paper & Board Tervakosi Oy (Finland) SPI Developments Ltd. (United Kingdom)

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)

see Filter Tow

Agricultural Chemicals

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)

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

Bale Slicers 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)

Vintero Corporation (United States)

Adhesives

Belts & Belting

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, Cigarette Filter Tip Machines, Cigarette Making Machinery, Cigarette Tax Stamping Machines, Cutters & Cutting Machines, Packaging Machinery, Rebuilt Machinery Materials-Non Tobacco, Spare Parts, Wrapping Machines. Office: Aiger Group AG. Tel: +41 41 7267873. Email: office@hqgroup.aiger.com. Aiger USA LLC. Tel: +1 412 616 2833. Fax: +1 412 251 0466. Email: sales@ usa.aiger.com. Aiger Far East Ltd. Tel: +65 9272 2203. Email: kevin.ang@aiger.com. Aiger UK Ltd. Tel: +44 (0) 121 230 1768. Email: sales@aiger.com.

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

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

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

Andover

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

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

F.A.Read’s Jumbe, g.m.; A.M.B. KythembaNew Mwale, asst.Castle, g.m. BusiV. Shah. 19720, Business Type: Suppliers. Products: Filters. AET Films, 15ness Way, DE United Type: Associations, Leaf Dealers. Akiki’s SARL, Nahr Ibrahim Akiki Bldg., Jounieh 1899, Agrimmcor Ltd., Registered Office: Post Box 15, Mangalagiri Lebanon.326 Tel: +9615501. 9 440739. Fax:Email: +961 9 901934. Email: States. Tel: +1Rd., 302 326 5500. Fax: +1 302 takiki@akikis.com. Web: www.akikis.com. Personnel: T C 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 September 24–26, 2019 Global Tobacco & Nicotine Forum (GTNF) Four Seasons Hotel, Washington, D.C. Web: gtnf.org. November 12–14, 2019 Tabexpo RAI Exhibition and Convention Center, Amsterdam, Netherlands. Web: tabexpo219-amsterdam.com.

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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.

The authority on the tobacco industry since 1886 April/May 2019

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2019 BUYERS’ GUIDE & GLOBAL DIRECTORY Product Manufacturers

The End of Smoking in the

Exporters & Importers

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

HOW JTI IS MAKING PROGRESS TOWARD TOBACCO SUSTAINABILITY

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.

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ADVERTISER INDEX Aiger Group AG .......................................................... 17

Star Agritech International ................................... 23, 27

B.A.T. ........................................................................ 21

SWM International ..................................................... C4

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

Tobacco International Buyers’ Guide 2020.................. 33

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

Tobacco Board of India ............................................... 3

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

TSAL Ltd. (Tobacco Solutions Asia Limited) ............... 15

Hertz & Selck GmbH & Co. ........................................ 25

U.S. Tobacco Cooperative, Inc. .................................. C3

Micro Laser Technology GmbH .................................. 12

Universal Leaf Tobacco Company, Inc. ...................... 19

34 TOBACCO INTERNATIONAL SEPTEMBER 2019

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Tobacco International - September 2019

Articles inside

Is the End in Sight For Vaping?

TI Digest

A Bad Summer for Vaping

High Demand Makes Ukraine Attractive to Global Tobacco Majors

A Look Back to Traditional Methods do Produce a Tobacco for the Future

How BAT Plans to Create a More Efficient and Focused Company

Leaf News