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Tag: Imperial Brands

  • FDA Denies Market Access to Myblu

    FDA Denies Market Access to Myblu

    Photo: Alex Kalmbach

    The U.S. Food and Drug Administration issued marketing denial orders (MDOs) to Fontem US for several Myblu electronic nicotine delivery system (ENDS) products after determining their applications lacked sufficient evidence to show that permitting the marketing of these products would be appropriate for the protection of the public health.

    According to a notice published on the FDA’s website, the currently marketed products receiving MDOs include Myblu Device Kit, Myblu Intense Tobacco Chill 2.5% and Myblu Intense Tobacco Chill 4.0%.

    In reviewing premarket applications for tobacco products, the FDA evaluates the risks and benefits of those products to the population as a whole, including users and nonusers of the tobacco product, and considers, among other things, the likelihood that those who do not currently use tobacco products will start using those tobacco products.

    Based on the information submitted by Fontem US for these Myblu products and the available evidence, the applications lacked sufficient evidence regarding design features, manufacturing, and stability, according to the FDA. Additionally, the applications did not demonstrate that the potential benefit to smokers who switch completely or significantly reduce their cigarette use would outweigh the risk to youth, the agency said.

    Tobacco products subject to an MDO may not be offered for sale, distributed or marketed in the U.S.

  • Imperial Brands Issues Trading Update

    Imperial Brands Issues Trading Update

    Photo: Casimirokt | Dreamstime.com

    Imperial Brands continues to perform in line with its five-year strategy launched in 2021, the company announced in a trading update.

    “Focused investment in our top five combustible markets, which account for around 70 percent of adjusted operating profit, has driven an increase in aggregate market share for those markets,” the company wrote. “Gains in the U.S., U.K. and Australia more than offset declines in Germany and Spain. These share gains were achieved while maintaining strong pricing discipline, and overall tobacco volumes are in line with expectations.”

    According to Imperial Brands, consumers have responded positively to the pilots of its Pulze heated-tobacco system in Greece and the Czech Republic and an improved consumer marketing proposition for its Blu vapor product in the U.S. “We are making good progress against our strategic objective of building a sustainable, consumer-centric next-generation product (NGP) business, and we will provide an update on our next steps at the interim results,” the company wrote.

    Imperial Brands expects first-half NGP revenues to be slightly ahead of the prior period, driven by growth in Europe.

    “We are on track to deliver full-year results in line with our revised guidance issued on 15 March, with expected full-year net revenue growth of around 0 [percent to] 1 percent on a constant currency basis and adjusted operating profit growth of around 1 percent,” Imperial said.

    The company expects first-half group adjusted operating profit to grow by around 2 percent on a constant currency basis, benefiting primarily from reduced losses in NGP. “As expected, tobacco performance will be weighted to the second half,” the company wrote. “First-half tobacco operating profit will be broadly flat on last year on a constant currency basis, with increased investment behind our strategy offsetting the benefit of reduced U.S. litigation costs compared to last year.”

    In the wake of Russia’s invasion of Ukraine, Imperial Brands is continuing negotiations with a local third party about an orderly transfer of its Russian assets and operations as a going concern.

  • Imperial Negotiates Transfer Russian Assets

    Imperial Negotiates Transfer Russian Assets

    Photo: Casimirokt | Dreamstime.com

    Imperial Brands has begun negotiations with a local third party about a transfer of its Russian assets and operations.

     “We believe that, in the current circumstances, an orderly transfer of our business as a going concern would be in the best interests of our Russian colleagues,” the company wrote in a press release. “We employ 1,000 people in Russia in our sales and marketing operations and in our factory in Volgograd—and their safety and well-being is our key priority in this process. We will also continue to pay their salaries until any transfer is concluded.

     “Meanwhile, we are also supporting our Ukrainian colleagues and their families, including with transport and accommodation to enable them to escape the areas most severely hit by conflict as well as [with] resettlement assistance for those who have left Ukraine.

     “We have evaluated the financial impact of an exit from Russia and the previously announced suspension of operations in Ukraine on our full-year guidance for FY22. We now expect full-year constant currency net revenue growth of around 0 [percent] to 1 percent. While there will be some ongoing costs related to the suspension in Ukraine, we expect a relatively small impact on our constant currency adjusted operating profit, reflecting the limited profit contribution of the two markets. In FY21, Russia and Ukraine represented in total around 2 percent of net revenues and 0.5 percent of adjusted operating profit. Any transaction relating to our Russian business is subject to agreement being reached.”

  • Firms Scale Back in Russia and Ukraine

    Firms Scale Back in Russia and Ukraine

    Photo: BAT

    The leading tobacco companies are adjusting their strategies in Russia and Ukraine following the war between those countries.

    Philip Morris International announced the suspension of its planned investments in the Russian Federation, including all new product launches and commercial, innovation and manufacturing investment. PMI has also activated plans to scale down its manufacturing operations amid ongoing supply chain disruptions and the evolving regulatory environment.

    “We have watched with shock the war in Ukraine and condemn the violence in the strongest possible terms. We stand in solidarity with the innocent men, women and children who are suffering,” said PMI CEO Jacek Olczak in a statement. “We join the many voices calling for an immediate end to the war and the restoration of peace.”

    Olczak said PMI had helped evacuate more than 800 people from the most impacted areas; provided critical aid to employees who remain in Ukraine; and provided those who have left the country with logistical, medical, financial and other practical support in neighboring countries. PMI is continuing to pay salaries to all its Ukrainian employees during this period, the company said.

    Ukraine accounted for around 2 percent of PMI’s total cigarette and heated-tobacco unit shipment volume and under 2 percent of PMI’s total net revenues in 2021. The company has one factory and approximately 1,300 employees in the country.

    In 2021, Russia accounted for almost 10 percent of PMI’s total cigarette and heated-tobacco unit shipment volume and around 6 percent of PMI’s total net revenues. The company employs more than 3,200 people in the country.

    BAT, which employs more than 1,000 people in Ukraine and around 2,500 people in Russia, said it had suspended all business and manufacturing operations in Ukraine and suspended all planned capital investment into Russia.

    “In Ukraine, we have suspended all business and manufacturing operations and are providing all the support and assistance we can to our colleagues, including relocation and temporary accommodation. Our businesses bordering Ukraine are providing assistance to the humanitarian relief effort,” the company wrote on its website.

    “In Russia, we have a full establishment of our people right across the country, including substantial local manufacturing. Our business in Russia continues to operate. As a key principle, we have a duty of care to all our employees at this extremely complicated and uncertain time for them and their families.”

    Japan Tobacco International, which has four factories and nearly 4,000 employees in Russia, announced the suspension of all new investments and marketing activities as well as the planned launch of its Ploom X heated-tobacco product in Russia, citing the unprecedented challenges of operating in Russia at this time. “Unless the operating environment and geopolitical situation improve significantly, JTI cannot exclude the possibility of a suspension of its manufacturing operations in the country,” the company wrote in a press statement.

    Imperial Brands also suspended all operations in Russia, halting production at its factory in Volgograd and ceasing all sales and marketing activity.

    “We have already suspended our operations in Ukraine in order to prioritize the safety and well-being of our 600 employees in that country,” the company wrote in a statement.

    Russia and Ukraine are relatively small markets for Imperial Brands, representing around 2 percent of net revenues and 0.5 percent of adjusted operating profit in 2021.

  • Imperial Recognized for Climate Action

    Imperial Recognized for Climate Action

    Imperial Brands has won continued recognition as a global leader for its engagement with suppliers on strategies to combat climate change.

    The business has been included on the 2021 Supplier Engagement Leaderboard compiled by environmental nonprofit organization CDP.

    This is the third successive year that Imperial has been named a Supplier Engagement Leader.

    In December, Imperial maintained its position on CDP’s Climate ‘A List’ for its actions to cut emissions and mitigate climate risks.

    Companies responding to the full version of the CDP climate change questionnaire also receive a Supplier Engagement Rating (SER). The companies with the best SER are highlighted as Supplier Engagement Leaders—which this year are the top 8 percent of companies to have made disclosures.

    “We are pleased to once again be recognized by CDP, and we remain unrelenting in our focus on climate, in line with our commitment to reach net-zero global emissions by 2040,” said Imperial’s Global ESG Director Tony Dunnage in a statement.

  • Tobacco Firms Recognized as Top Employers

    Tobacco Firms Recognized as Top Employers

    BAT, Japan Tobacco International and Imperial Brands have been named as top employers by the Top Employers Institute.

    “Being named as a Global Top Employer for the fifth year in a row is a recognition of BAT’s inclusive, engaging culture and innovative working environment,” said Hae In Kim, director of talent, culture and inclusion at BAT, in a statement. “We are continually striving to maintain a workplace where employees feel empowered and well supported, and we are delighted this has been recognized.

    “It is an honor to once again be certified by Top Employers Institute,” said Howard Parks, JTI’s senior vice president of people and culture, in a press note. “Our people are at the heart of everything we do, which is why we aim to offer them the best possible working environment. Giving our over 40,000 colleagues the opportunity to grow and providing them with the optimal conditions and support to fulfil their potential is of paramount importance to us.”

    “I am delighted that Imperial has been recognized as a Top Employer for another year,” said Alison Clarke, Imperial’s chief people and culture officer, in a statement. “Imperial Brands is a great place to work, grow and develop, and it’s particularly pleasing that—in these challenging times when we can’t always congregate in the way we would like—our people have shown real resilience and embraced new ways of engaging to create an even better place to work.”

    The Top Employer certification process is conducted annually by the Top Employers Institute, an independent organization that studies the employee offerings of major employers around the world. Certification recognizes employers that provide best-in-class employment practices, allowing employees to develop themselves personally and professionally while driving business results. Participating companies undergo a rigorous assessment process, which includes an extensive review of employer practices. Several validation sessions are held where evidence of these practices is provided, and an independent audit of the findings is also carried out.