Tobacco Asia

26 tobaccoasia PRODUCT NEWS 产品新闻 Altria Betting on Smokeless Products Altria Group is shifting it business towards smokeless products more after it divested itself of Juul Labs at a loss of at least US%12.5 billion, writing down the value of its 35% stake in Juul to just US$250 million before exchanging it for intellectual property rights to some of Juul's heated tobacco prototypes. Now, Altria is currently developing a new range of e-cigarettes, heated tobacco products, and oral nicotine pouches. They also have acquisition plans for vaping pioneer NJOY Holdings Inc. The Wall Street Journal reports that Altria plans to export its reduced-risk products and is thinking about introducing non- nicotine products like cannabis products or caffeine pouches. For the first time, Altria set volume and revenue targets for its switch to smoke-free products, aiming to increase its smoke-free sales volume by at least 35% over the next five years as well as double its net revenue from smoke-free products to US$5 billion by 2028, including US$2 billion from new reduced-risk products. According to Billy Gifford, Altria's c.e.o, the company's past efforts to develop or acquire products were "chasing the market", adding that, "You're constantly watching what the consumer is telling you in the marketplace, but none of them were satisfying the consumer enough to ultimately meet all of their needs and desires." Altria will now seek feedback from smokers throughout the development process and make adjustments as a result. Altria reported US$2.6 billion in net revenue from smoke-free products last year, almost all of which came from brands of moist smokeless tobacco like Copenhagen. The Food and Drug Administration has not yet approved many of the new products in Altria's strategy, so they cannot be sold until they are. Years could pass during that process. Malaysia Removes Nicotine E-Liquid from Poisons List: Paves Way for E-cig/Patch Biz Malaysia effectively legalized vapes with nicotine when it removed nicotine e-liquids from the poisons list of controlled substances as the current Control of Tobacco Products Regula- tions 2004 under the Food Act 1983 only cover conventional cigarettes and other tobacco products. Nicotine e-liquids are no longer on Malaysia's Poisons List of controlled substances. The Control of Tobacco Product and Smoking Bill 2022, tabled by former health minister Khairy Jamaluddin in the previous administration, will regulate both tobacco and vape products as well as place a generational ban on these products for anyone born from 2007. The bill has yet to be tabled in the current parliament under Prime Minister Anwar Ibrahim. Malaysia's health minister, Dr. Zaliha Mustafa, is alleged to have overruled the Poisons Board's decision against exempt- ing nicotine liquids and gels from the Poisons Act. The exemption paves the way for e-cigarettes and vapes as well as nicotine patches used to quit smoking to be sold over the counter. Before the exemption products containing nicotine needed prescriptions from doctors or pharmacies. The exemption also allows the government to tax nicotine e-liquids. The Excise Duties (Amendment) Order 2023, which came into effect on April 1, subjects nicotine e-liquids to MYR0.40 per milliliter excise tax. According to Ibrahim, who is also the finance minister, half the revenue from this excise tax will be allocated to the health ministry. Liquid or gel products with nicotine are estimated to be worth MYR2 billion (US$452.2 million) in potential government revenue. Last year, based on projections, JTI Malaysia said the government was missing the chance to collect MYR866 million in taxes from liquids used in e-cigarettes and vapes. JT Set to Invest Over US$2 Billion in HTP Japan Tobacco (JT) will invest ¥300 billion (US$2.25 billion) over the next three years to expand its heated tobacco stick products, with ¥200 billion set for marketing the sticks outside of Japan. "Last year, we couldn't make the investment because there were not enough [heated tobacco] devices due to the semiconductor shortage," said Japan Tobacco president Masamichi Terabatake in an interview with Nikkei Asia. "For 2023, we are back on track for procurements, and we are able to secure more than twice Japan's supply volume compared to last year." He added that most of the ¥300 billion investment will be the initial costs of product rollout into new countries. JT's Ploom X heated tobacco product is currently sold only in Japan and the UK with plans to launch in Italy. JT aims to rollout Ploom X in more than 10 countries this year reaching at least 20 countries by the end of next year. JT also recently formed a joint venture with Altria Group to sell its heated tobacco products in the US market. By early 2025, the partners hope to submit an application to the Food and Drug Administration for the approval of Ploom. JT will invest in digital sales and pop-up stores to build brand recognition as well as develop flavors to suit the preferences of each market. JT will invest in r&d as well, to develop the second and third generations of Ploom X devices. The company anticipates its heated tobacco segment to turn a profit in 2028 on overseas growth. Juul Pays US$462 Million Settlement Juul Labs reached a US$462 million settlement with six US states and the District of Columbia, to be paid over six years, resolving nearly all pending litigation against the e-cigarette maker. New York, California, Illinois, Massachusetts, Colorado, and New Mexico sued the company in separate lawsuits alleging it marketed its products to minors and that the company failed to warn young users that the high levels of nicotine in their e-cigarettes would prove addictive. Juul reached settlements with 47 states and territories and 5,000 individuals and local governments; a trial is currently taking place in Minnesota, an unusual case where no settlement has been reached. The company is also facing lawsuits or open investigations by Florida, Michigan, Maine, and Alaska. Last year, Juul agreed to pay US$1.7 billion to resolve more than 5,000 individual and local government entity lawsuits, as well as US$439 million to settle comparable lawsuits with 34 states and territories. Earlier this month the company settled claims by West Virginia for US$7.9 million. According to The New York Times, company spokesper- son Austin Finan said the company had not admitted wrong- doing in the latest agreement and that the settlement represents a near "total resolution of the company's historical legal challenges and securing certainty for our future."

• Cover