Tobacco Asia

28 tobaccoasia PRODUCT NEWS 产品新闻 The company continues to expand revenue from products beyond cigarettes as smoking volumes decline over the long term in some key markets. For its cigarette business, BAT plans to concentrate investment on 20 markets that account for 80% of industry revenue. The company expects global tobacco industry volumes to decline annually by 2.5% between 2025 and 2030. BAT also plans to incorporate artificial intelligence into areas including product development, marketing and manufac- turing as part of its longer-term strategy. The company said it remains on track to deliver results at the lower end of its 2026 guidance. It expects revenue growth of between 3% and 5% and adjusted operating profit growth of between 4% and 6% for the financial year. Imperial Buys Helwit Nicotine Pouches Imperial Brands acquired Swedish modern oral nicotine company Yoik Group AB, owner of the Helwit nicotine pouch brand, in a move that more than doubles Imperial's existing modern oral market share in Sweden. Yoik, founded in 2019, developed Helwit into one of Sweden's leading independent modern oral nicotine brands. Helwit holds a 3.4% share of Sweden's modern oral nicotine market. Sweden accounts for more than 40% of total modern oral nicotine volumes in Europe, making it the region's largest market for the category. Imperial acquired 100% of Yoik's shares for an initial SEK515 million (US$53.6 million), plus an additional deferred payment tied to performance over two years. The acquisition fits Imperial's capital allocation strategy of investing in its business through bolt-on transactions. The Yoik team, including the founders, will join the Imperial Brands team as part of the transaction. Helwit also sells online across Europe and has distribu- tion in selected UK retail stores. Its portfolio emphasizes a broad range of flavors beyond traditional mint varieties and draws on a distinctive Swedish identity. Germany Probes 7.6M Illegal Vapes German customs investigators are probing an alleged interna- tional network that imported more than 7.6 million nicotine- containing disposable vapes from China and distributed them through Germany's black market. The Essen Customs Investigation Office and Düsseldorf Public Prosecutor's Office launched the investigation into the alleged network, which authorities say operated between January 2024 and March 2025. They estimate the alleged imports caused €33.3 million (US$38.2 million) in unpaid excise taxes. Authorities have identified 23 suspects, including four employees of an unnamed Chinese e-cigarette manufac- turer and 19 people in Germany. Investigators allege that the four manufacturer employees established a sales structure involving agents and wholesalers to move the vapes into Germany, while the German suspects received, stored, and redistributed the untaxed products. Customs officers executed 13 arrest warrants during the operation and seized more than 100 pallets containing about 600,000 disposable vapes. Authorities estimate the seized products represent around €4 million (US$4.6 million) in unpaid taxes. The 7.6 million figure refers to the number of vapes that investigators allege entered Germany during the 15-month period, rather than the number seized during the searches. Investigators also seized or restrained four properties, a high-value vehicle, luxury watches, gold jewelry, gold bars, and more than €2.25 million (US$2.6 million) in cash. Authorities also froze 37 bank accounts. The alleged distribution network operated across several parts of Germany, including the Cologne area, the northern Ruhr region, Wesel district, Koblenz, Frankfurt, and Stuttgart. Investigators estimate that German buyers obtained untaxed e-cigarettes with a value of about €11 million (US$12.6 million). The operation also involved representatives of the European Anti-Fraud Office (OLAF), while customs offices and police forces from several German regions supported the investigation. German authorities allege that the network transferred proceeds to China or other foreign accounts through shell companies. The investigation remains ongoing. Authorities have not publicly identified the Chinese manufacturer involved in the case, and all 23 suspects remain presumed innocent unless convicted. New York Imposes 75% Nicotine Pouch Tax New York has extended its tobacco products tax to alternative nicotine products, including nicotine pouches, creating a new 75% levy on their wholesale price. The tax took effect September 1 under the state's fiscal 2026-27 budget. New York defines alternative nicotine products as noncombustible products, other than vapor products, that contain nicotine but no tobacco and are intended for human consumption. The definition covers products absorbed, dissolved, or consumed by other means. The New York State Department of Taxation and Finance says distributors generally must pay the tax. Retailers and other sellers also faced a floor tax on alternative nicotine products held in inventory at the end of August. They had to report their inventories and pay 75% of the wholesale price by September 21. The measure applies to products such as ZYN and other oral nicotine products, and can also apply to nicotine gum and lozenges that are not FDA-regulated cessation products. The state expects the measure to generate additional tobacco tax revenue. Under the budget, an additional US$50 million annually will go to the Health Care Reform Act fund beginning in fiscal year 2027-28. The New York State Assembly estimat- ed that including alternative nicotine products in the tobacco tax would generate about US$18 million in additional revenue during fiscal 2026-27. The new tax has drawn criticism from the tobacco industry. PMI US said it was "disappointed" by the measure, according to reporting on the budget legislation. Critics of the tax argue that the higher cost could make regulated nicotine products less accessible to adult consumers who have moved away from cigarettes, while also creating greater price differ- ences between legal and illicit products.

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