As the global tobacco industry gradually recovers from the new crown epidemic, ITGA has finally resumed offline meetings, and InterTabac/InterSupply is also making a heavy comeback after two years of suspension. Although combustible tobacco is still the mainstream tobacco product in the world, multinational tobacco companies also In diversifying its business, the Indonesian and Philippine markets are very popular.

Global Market

International cigarette machine companies respond to the trend

German cigarette machine equipment supplier TMQS said that new tobacco products will occupy more market share, and this transformation is the strategic goal of multinational tobacco companies. Iten Metals, a Swiss cigarette machine equipment supplier, said that at present, some tobacco manufacturers have increased demand for cigarette manufacturing machinery with relatively old models and slow production speeds, and may want to produce relatively unique environmentally friendly cigarettes. Equipment is more suitable for the production of this product.

Why are new tobacco companies keen on Indonesia?

What is different from going overseas in the conventional sense is that the enthusiasm of new tobacco(HNB heat-sticks) companies for Indonesia is not only the market layout, but also the actions at the supply chain level such as factory landing. Why are new tobacco(heated Tabak) companies so keen on Indonesia? After analyzing policies and events, the following four points are summarized: local potential consumer market, policy support such as tariffs, weak supervision, and the drive of multinational tobacco companies.

Combustible Tobacco Remains Global Mainstream Tobacco Product

According to the second edition of the Tobacco Transformation Index (TTI), cigarettes and combustible tobacco will remain mainstream products in 2021, accounting for around 95% of retail sales by 15 large companies worldwide. The Index, an initiative of the Foundation for a Smoke-Free World, ranks 15 of the world’s largest tobacco companies for their efforts to reduce the harm of their products. Swedish Match ranks first in the 2022 index, with Philip Morris International, Altria and British American Tobacco in second, third and fourth places, respectively.

Giant Focus

JTI continues to invest in Philippine market business

JTI has pledged to continue investing in the Philippines. Next year will be investing heavily in hiring more staff at the Global Business Service Centre (GBS) and possibly even producing heated tobacco at the Batangas manufacturing centre. At the height of the epidemic in 2020, Japan Tobacco International opened a global business service center in the Philippines. Freda said the company will expand by another 150 this year, bringing the number of employees in the service center to 600 to better meet the needs of subsidiaries in Asia-Pacific and the Americas.

British American Tobacco acquires cannabis company again

British American Tobacco has made another investment in the cannabis space, acquiring a non-controlling minority stake in the leading German cannabis company, Sanity Group. Last year, British American Tobacco invested about $175 million for a 19.9 percent stake in licensed cannabis producer Organigram Holdings, and this year invested another $5.1 million in Organigram. Last year, the company also invested in Trait Biosciences, which offers CBD water-soluble technology.

New Tobacco

JTI and Altria form joint venture to commercialize Ploom heated tobacco in the U.S.

Altria Group and Japan Tobacco International jointly announced a strategic partnership in the heated tobacco product(herbal heat-sticks) portfolio, the two parties will invest in a joint venture (JV), through its subsidiary PM USA (Philip Morris USA), for marketing in the United States and commercialization of heated tobacco stick (HTS) products and expansion of wholly owned product pipeline. The two groups have also signed a long-term, non-binding global memorandum of understanding (MOU) to explore commercial opportunities for various potential risk reduction products (RRPs).

The 5th Asian Harm Reduction Forum was held on October 28

This year’s Asian Harm Reduction Forum (AHRF) was held in the Philippines under the theme “Integrating Harm Reduction into Asian Policy: A Major Victory for Public Health”. As a non-profit and interdisciplinary organization, AHRF Developments in research and public health provide information and education. As in previous years, AHRF 2022 invites leading multidisciplinary and internationally renowned experts from the fields of science, policy development and consumer advocacy, all focused on reaching science-based solutions and creating pathways to safer alternatives to nicotine products.

Philip Morris International Launches IQOS ILUMA Tobacco Heating Device

Philip Morris International (PMI) said on October 25 that it will sell a new generation of tobacco heating equipment, the IQOS ILUMA series, at IQOS official stores in Seoul, Busan and other parts of South Korea and convenience stores across the country from November 10. Currently, KT&G is the No. 1 player in the heated tobacco field in South Korea, with a market share of 47%. The runner-up is Philip Morris International, and the third is British American Tobacco.

Tobacco and Law

Swiss government has proposed changes to tobacco law: proposed new tax on e-cigarettes

The Swiss parliament has been asked to back the proposal, which is expected to bring in additional tax revenue of around 13.8 million Swiss francs ($13.8 million) a year. The proposed tax rate for reusable e-cigarettes is CHF 0.20 per milliliter of nicotine-containing liquid. For single-use e-cigarettes, the government is targeting CHF 1 per milliliter of liquid – regardless of nicotine content. Higher tax rates on single-use e-cigarettes are designed to discourage minors from trying them.

EU plans to revise technical standards for tobacco traceability system

The Directorate-General for Health and Food Safety of the European Commission (DG SANTE, hereinafter referred to as SANTE) recently updated a meeting minutes on its official website, introducing the key content of its Tobacco Control Expert Group meeting held on June 19. The meeting mainly discussed the EU tobacco traceability system, which revised the Commission’s Implementing Regulation (EU) 2018/574. The regulation refers to the technical standards for the establishment and operation of a traceability system for tobacco products published by SANTE on December 15, 2017.

Indonesia plans to introduce stricter tobacco control regulations

The Indonesian government recently plans to introduce stricter tobacco control regulations to curb underage smoking. The Indonesian Ministry of Health is working hard to control the development of e-cigarettes. E-cigarettes have remained unregulated since Indonesia legalized them in 2018. In addition, the country’s health ministry expects to increase the graphic health warning area on tobacco packages and ban the sale of single cigarettes.