The conflict between Russia and Ukraine lasted for half a year, resulting in rising global energy and fertilizer prices, rising tobacco production costs, declining production in Brazil and Zimbabwe, and increasing average tobacco prices. Tobacco giants Altria and Japan Tobacco released semi-annual reports, and new tobacco(heated tobacco) drives profit improvement.

Global Market

Bottleneck in German hookah supply

According to reports, Germany recently stipulated that hookah manufacturers can only sell small packages of up to 25 grams, and 200-gram packages and larger containers that were once commonly used will be banned. There may be a severe shortage of hookah supplies and many consumers may not be able to get one. Stocked hookahs are still available for sale, but most will be depleted this fall. There are around 100 shisha manufacturers in Germany, and most do not have enough time to retool their machines or buy new equipment. Only 6 to 7 German manufacturers are currently able to produce this small package, and the production capacity is low.

UK corner store cigarette sales fall by half in three years

Sales of cigarettes and other tobacco products in UK convenience stores have fallen by nearly half in three years, according to a new study by the University of Scotland. A team led by researchers at the University of Edinburgh analysed sales data from almost 1,400 convenience stores in Scotland, England and Wales and compared transactions that occurred during a typical week of March, June, September and December 2016 with those of 2019. Transactions over the same period are compared.

new tobacco

Altria Group Acquires Patents for Heated Cigarette(HNB Tabak supplier) Technology

Recently, Altria Group and Poda Holding Company signed a definitive agreement to purchase Poda’s series of technology patents on heated cigarettes(herbal sticks). The total price of the transaction is $100.5 million. Boda’s patented heated cigarettes use biodegradable technology to prevent contamination of heating equipment and help protect the environment. This technology can provide users with a more convenient and enjoyable experience.

British American Tobacco Announces Glo Hyper X2 Tobacco Heater

British American Tobacco recently released the Glo Hyper X2 tobacco heating device in Tokyo. The Hyper X2 uses more advanced induction heating technology in a smaller, lighter device. The product has an independent heating function, battery status indicator, and new colors. These features and elements work together to complete the new generation of X2 products.

Giant Focus

STG’s second-quarter profit drops

European company Scandinavian Tobacco Group (STG) recently announced that its second-quarter profit and sales fell 1.8% year-on-year, calling the results “disappointing and below the company’s expectations.” STG is the parent company of General Cigar Company and Cigar International. In addition to handmade cigars, the company also sells machine-made cigars, snuff and pipe tobacco. The company attributed the decline to supply chain issues.

Japan Tobacco Semi-annual Report: Cigarettes dropped sharply, new cigarettes increased sharply

In the first half of this year, Japan Tobacco’s revenue was 1.27 trillion yen, a year-on-year increase of 10.7%; net profit was 264.1 billion yen, a year-on-year increase of 17.3%; among which, the revenue of new tobacco products in the first half of the year was 39.1 billion yen, a year-on-year increase of 1.4%; The sales volume of cigarette products was 4 billion, a year-on-year increase of 14.5% in the first half of the year, including products such as heat not burn and atomized electronic cigarettes; in the second quarter, the sales volume of new cigarette products was 2.1 billion, a year-on-year increase of 13.6%, and the growth rate was moderate. slow down.

Altria Reports First Half 2022 Results

Altria Group released its 2022Q2 quarterly report and 2022 semi-annual financial report. In 2022H1, after-tax net income was US$10.193 billion, a year-on-year decrease of 2.9%, and net profit attributable to the parent was US$2.850 billion, a year-on-year decrease of 20.2%; Net income was US$5.374 billion, a year-on-year decrease of 4.3%, and net profit attributable to the parent company was US$891 million, a year-on-year decrease of 58.5%.

Swedish Match’s second-quarter operating profit exceeds market expectations

Recently, Swedish Match reported that the company’s second-quarter operating profit exceeded market expectations due to growth in the US market. Philip Morris International plans to buy Swedish Match for $16 billion, the two sides have reached an agreement. Swedish Match’s operating profit rose to SEK 2.23 billion ($22.47 million) from SEK 1.96 billion a year earlier. Analysts polled by Refinitiv forecast an average operating profit of 2.19 billion Swedish krona.

Tobacco and Law

Altria and others post health signs in retail stores

Several tobacco companies, including Altria, Philip Morris International USA, Reynolds Tobacco, and ITG Brands, have reached an agreement for a lawsuit brought by the U.S. Department of Justice (DOJ) and several public health organizations over the dissemination of tobacco-related information in retail stores. The retail stores it contracts with provide court-required health signs for 21 months. The agreement stipulates that retail stores that contract with any of these tobacco companies must post at least one sign with one of 17 different pre-approved health messages that will be distributed randomly to retailers across the country.

Welsh Government to develop smoke-free plan

According to reports, the Welsh Government has recently drawn up plans to make Wales a smoke-free country within the next eight years, with a goal of having less than 5% of Welsh adults as regular smokers by 2030. Wales will tailor smoking cessation programmes for all hospital admissions, explore e-cigarettes as a potential way to quit smoking and ramp up efforts to crack down on the illicit tobacco trade.