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Tobacco industry weekly news: Week 14 of 2019

Tobacco industry weekly news: Week 14 of 2019. On March 28, the 2019 meeting on work for retired veteran cadres in the tobacco industry was held in Beijing. The meeting reviewed 2018 efforts and outlined tasks for 2019. Yang Peisen, deputy director of the
Tobacco industry weekly news: Week 14 of 2019

On March 28, 2019, the Tobacco Industry Retired Cadres Work Conference was held in Beijing. The meeting summarized the work of retired cadres in the industry for 2018 and deployed tasks for 2019. Yang Peisen, Deputy Director of the State Tobacco Monopoly Administration, attended and spoke at the meeting.

On March 28, a training video conference for the annual work report of tobacco industry enterprises for 2018 was held in Beijing. The meeting provided training for reporting personnel from various units regarding the compilation of the annual work report. Xu, Deputy Director of the State Tobacco Monopoly Administration, attended the meeting and delivered a mobilization speech.

On March 28, the State Tobacco Monopoly Administration issued implementation opinions, requiring tobacco monopoly administrations at all levels to focus on key links such as the source, process, and results of tobacco monopoly law enforcement, and to fully implement the administrative law enforcement publicity system, the full-process recording system for law enforcement, and the legal review system for major law enforcement decisions (hereinafter referred to as the "three systems"), promoting strict, standardized, fair, and civilized law enforcement, preventing systemic legal risks in the monopoly enforcement system, and creating a more open, transparent, standardized, orderly, fair, and efficient legal environment.

Industrial Aspects

Recently, the "Sharing and Win-Win" themed cultural practice activity of Fujian China Tobacco Industrial Co., Ltd. successfully concluded. After strict selection by more than ten expert judges, 146 works stood out, including 16 micro-videos, 6 animation groups, 30 new interpretations of cultural concepts, 47 micro-story cultural cases, 33 mobile photos, and 14 short videos.

Recently, Anhui China Tobacco Industrial Co., Ltd. Fuyang Cigarette Factory actively transformed its meeting style, reducing reports, speeches, and accompanying meetings, and continuously implementing rectification work against formalism and bureaucratism.

To deeply learn from the lessons of the Jiangsu Xiangshui "3.21" chemical plant explosion, on March 26, Guizhou China Tobacco Industrial Co., Ltd. organized a comprehensive safety inspection of hazardous chemicals.

On March 28, Chongqing China Tobacco Industrial Co., Ltd. held a technical work meeting to summarize last year's work and arrange tasks for technical research and development in 2019. The meeting emphasized the need to earnestly implement the spirit of the National Tobacco Work Conference, the National Tobacco Science and Technology Work Conference, and the company's 2019 work meeting, closely focusing on the three strategies of "catching up, gathering, and digitalization," targeting the market for products, focusing on products for scientific research, and fully leveraging the "engine" role of the technology center to effectively carry out the technological innovation campaign for characteristic development. Zhang Li, Secretary of the Party Committee and General Manager of the company, attended the meeting and spoke.

To implement the requirements of strict governance of the Party, further standardize and strengthen the company's accountability work, and enhance the management and supervision of company employees, Jiangxi China Tobacco Industrial Co., Ltd. recently formulated and issued the "Regulations on Accountability Work of Jiangxi China Tobacco Industrial Co., Ltd." (hereinafter referred to as the "Regulations") based on industry requirements.

Commercial Aspects

To ensure the stability of the cigarette market order in the jurisdiction and continuously improve the level of market purification, recently, the Anhui Lu'an Tobacco Monopoly Bureau (Company) adjusted its market supervision direction in a timely manner based on changes in the cigarette market, cracking down on illegal circulation of cigarettes from points to lines and areas, effectively deterring the arrogance of illegal tobacco-related individuals.

Recently, the Jiangxi Provincial Tobacco Monopoly Bureau (Company) issued the "Key Points for Comprehensive Social Governance Work in the Provincial System for 2019" (hereinafter referred to as the "Key Points"), arranging and deploying comprehensive governance work for the whole year.

To further strengthen joint law enforcement efforts and severely crack down on tobacco-related illegal activities in the delivery process, the Shenzhen Tobacco Monopoly Bureau and the Shenzhen Postal Administration recently held a joint working meeting to discuss improving the joint law enforcement mechanism and jointly combating tobacco-related illegal cases in the delivery process.

Recently, the Zhejiang Provincial Tobacco Monopoly Bureau issued a notice to implement the "Zhejiang Province Guaranteeing the 'Most Runs Once' Reform Regulations" (hereinafter referred to as the "Regulations"), further promoting the "Most Runs Once" reform work in Zhejiang tobacco monopoly commerce.

Recently, Shanghai Chongming Tobacco and Suning Convenience Store Co., Ltd. signed a strategic cooperation agreement. The signing of this strategic cooperation agreement marks the beginning of a new chapter in the deep cooperation between Chongming Tobacco and large chain enterprises, representing a positive exploration of new business models.

Agricultural Aspects

In 2018, Ning'er Hani and Yi Autonomous County in Pu'er City, Yunnan Province firmly established the concept of green development, and promoted the green, environmentally friendly, ecological, and energy-saving development of tobacco leaf production through multiple measures to achieve quality and efficiency improvements in tobacco leaf production.

Recently, in the seedling nursery of Luoqian Rock in Jianyuan Town, Enshi Xuan'en County, Hubei Province, members of the professional seedling service team are engaged in substrate plating and sowing. To seize the season, ensure progress, and maintain quality, the Xuan'en County Tobacco Leaf Branch has recently coordinated the arrangement of 56 seedling bases across the county to successively carry out sowing and seedling work, laying a solid foundation for cultivating high-quality tobacco seedlings.

On March 29, in the specialized seedling base of Fengkang Village, Lufeng She Ethnic Township, Shanghang County, Longyan City, Fujian Province, villagers are busy mixing substrates and sowing watermelon seedlings. This is another measure taken by the Shanghang Branch to actively encourage tobacco farmers to utilize idle seedling facilities for income generation.

International Tobacco Weekly Overview

Multinational Companies

Currently, tobacco giants are united in seeking to overturn Australia's vaping ban to open up one of the last undeveloped markets for the $25 billion e-cigarette industry. The Australian Parliament is currently considering whether e-cigarettes should be legalized, with Philip Morris International and British American Tobacco having submitted opinions on the matter. Vaping companies have provided seed funding to a doctor-led charity aimed at winning the battle for e-cigarette legalization, and Philip Morris International sent its marketing executives to Sydney last week to promote the transition to smoke-free vaping products.

Market Dynamics

A study commissioned by the Malaysian Tobacco Manufacturers Association indicates that the country has the highest market share of illegal cigarettes globally. In 2018, illegal cigarettes accounted for 58.9% of the domestic tobacco market, totaling 12 billion sticks, an increase of 3.3% from 2017. To determine the scale of the illegal tobacco market, researchers collected 153,000 discarded cigarette packs throughout 2018 and analyzed their local tax stamps and authenticity packaging. Among the illegal cigarette packaging, 91% of the packs did not have tax stamps printed, while the remaining portion had fake tax stamps.

Bangladesh is one of the largest tobacco-consuming countries in the world, with approximately 35% (37.8 million) of adults currently using tobacco. About 22 million adults use smokeless tobacco, while 19.2 million smoke cigarettes and bidis. Among tobacco users, the proportion of those in extreme poverty (who cannot afford healthcare costs for tobacco-related fatal diseases) is high. The usage rate of smokeless tobacco among women is significantly higher than that of men. The issue of tobacco addiction among adolescents is also a serious and complex problem.

According to reports from the United News Agency, due to anti-smoking campaigns across South Korea and rising cigarette prices, cigarette sales in the country fell by 9.8% in February compared to the same period last year. Data released by South Korea's Ministry of Economy and Finance shows that smokers purchased 235.5 million packs of 20 cigarettes in February, down from 261 million packs in February 2018. The figures for February 2019 represent a 14.1% decrease compared to February 2014. However, the consumption of vaping products is moving in the opposite direction. In February, sales of heated tobacco products reached 29.4 million units, accounting for 12.5% of the country's tobacco market.

International Tobacco Leaf

The Zimbabwe Tobacco Research Board (TRB) plans to develop drought-resistant tobacco varieties to mitigate the impacts of climate change. The country's climate is characterized by prolonged dry periods. The board stated in its 2017-2018 annual report that the hot and dry weather conditions pose challenges for tobacco farmers due to poor seasonal rainfall patterns. Over 85% of Zimbabwe's tobacco farmers are small-scale producers who rely on rainfall for water.

The U.S. Department of Agriculture recently released its annual planting expectations report, estimating that the tobacco planting area will be 244,040 acres, a 16% decrease from 2018. Steve Pratt, General Manager of the White Burley Tobacco Growers Cooperative, believes the reduction in tobacco planting area is due to the gradual decline in the number of smokers and the increasing popularity of vaping. Pratt explained that some tobacco companies reduced or canceled their tobacco leaf procurement contracts in 2018, leading some farmers to stop growing tobacco or switch to cultivating hemp or raising livestock.

Tobacco and Law

The U.S. FDA recently issued requirements for the content and format of "Substantial Equivalence" (SE) reports for the approval of products classified as SE, specifically referring to products launched after February 15, 2007. Any tobacco products launched before that date and protected under the 2009 Tobacco Control Act can continue to be sold by retailers without further FDA approval.
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HNB Editorial Team

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