Globally Reported Tobacco Industry Interference during COVID-19 Pandemic – February 2022

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This is a continuation of our page on Globally Reported Tobacco Industry Interference during COVID-19 Pandemic and summarises the incidents reported during the month of February 2022. This page will be continuously updated as and when incidents related to the respective month are reported.

The Summary of Interference Reported as of 28th February 2022

Table 1 summarises the incidents reported since 13th March 2020, the date of initiation of the first Lock Down in Sri Lanka, the day we started monitoring Globally Reported Tobacco Industry Interference during COVID-19 Pandemic.

Table 1: Summary of reported TII during COVID-19 Pandemic

Tobacco Company Reported Countries Number of Incidents
British American Tobacco (BAT) South Africa, United States of America (USA), United Kingdom (UK), Brazil, Kenya, Bangladesh, Croatia, Mexico, Nigeria, Honduras, Russia, Malaysia, Zimbabwe, Uganda, Greece, Canada, Italy, Ireland, Egypt, New Zealand, Philippines, Belarus, Belgium, Australia, Iran, Romania, Namibia, Pakistan, South Korea, Uzbekistan, Burundi, Comoros, Democratic Republic of Congo, Malawi, Rwanda, Sudan, Tanzania, Zambia, France, Japan, Myanmar, Singapore, Malta, Indonesia 233
Philip Morris International (PMI) Brazil, Costa Rica, Greece, Turkey, Italy, Philippines, Bulgaria, Ukraine, Georgia, Russia, Canada, Burkina Faso, Denmark, Pennsylvania, Switzerland, Czech Republic, Japan, Astypalea, La Graciosa, United States, Netherlands, United Kingdom, Nigeria, Romania, Dubai, Australia, Pakistan, Trinidad and Tobago, Caribbean, Jordan 130
Altria group United Sates of America (USA), Canada, Switzerland 79
Japan Tobacco International (JTI) United Kingdom (UK), Bangladesh, Turkey, Malaysia, Philippines, Russia, South Africa, Zambia, Japan, Romania, Germany, Cambodia, Greece, Iran, Luxembourg, Nigeria, Malawi, Tanzania, United State of America (USA) 85
Imperial Tobacco Russia, Egypt, Ukraine, Greece, Czech Republic, United States 33
ITC Limited India India 85
Korea Tobacco Ginseng Corporation (KT&G) Indonesia, Turkey, Russia, Armenia, Serbia, Kazakhstan, Kyrgyzstan, Italy, Romania, Cyprus, Greece 9
Ceylon Tobacco Company PLC (CTC) Sri Lanka 13
Reynolds American United Sates of America (USA) 8
Universal Cooperation United Sates of America (USA) 2
VMR Products United Sates of America (USA) 2
RJ Reynolds Tobacco United Sates of America (USA) 5
Godfrey Phillips India India 5
DJarum Indonesia 2
PT HM Sampoerna Indonesia 1
Hongyunhonghe Tobacco (Group) - 2
7 HILLS Manikchand Products Private Limited India 2
Deccan Tobacco India 1
Vinataba Tobacco Company Vietnam 2
International Tobacco Company Nigeria 1
LT Group Philippines 1
China Tobacco China, Latin America 4
Gamucci United Kingdom, United States of America (USA), Asia and Africa 1
JUUL Labs United States of America (USA) 11
Swedish Match Sweden 3
Philip Morris Fortune Tobacco Corporation (PMFTC) Philippines 4
FerioTego Cigar Company United States of America (USA) 1
R.J Reynolds Vapor Company United States of America (USA) 1
Gold Leaf Tobacco Corporation South Africa 1
Barco Trading Company Angola 1
Pan Africa Tobacco Group Angola 1
Avail vapour United States of America (USA) 1
22nd Century Group United States of America (USA) 2
West Indian Tobacco Company Limited (WITCO) Trinidad & Tobago 1
Moroccan Tobacco Company (SMT)] Morocco 1
Company not specified or interference via Front Groups United Arab Emirates, Bangladesh, Zimbabwe, Malaysia, Australia, Lebanon, Senegal, Sri Lanka, France, Myanmar, India, Chile, South Africa, Kenya, Bhutan, Philippines, Greece, Hong Kong 44

Week 99: 31st January – 6th February 2022

Article 16 of the Framework Convention on Tobacco Control (FCTC) recommends measures on restricting the sale of tobacco products to minors, i.e. a person under the age limit set by the domestic/national law. It is proven that the restricting access to tobacco by bans on sales for minors leads to substantial reduction in tobacco use.
Image 1: Media reporting Reynolds American sponsoring the “TruAge” digital age verification system. [1]
  • Media reported that Philip Morris International (PMI) hosted a live webcast to discuss the financial results of the 4th quarter 2021 and the full year on 10th February 2022. According to the report, Emmanuel Babeau, Chief Financial Officer of PMI, and Jacek Olczak, Chief Executive Officer of PMI, were to discuss the financial results and answer the questions by the media.[2]
  • Philip Morris International (PMI) launched a report along with Philip Morris (Pakistan) Limited (PMPKL) celebrating the 10th Anniversary of Agricultural Labor Practices program (ALP). ALP reportedly targets to eliminate child labour and abuses in the tobacco farms.[3]
  • ITC Limited India announced an increase of its revenue by 30% to INR 18,365 crore (Approx. USD 2.41 billion) in the third quarter that ended by 31 December 2021. It further reported an increase of net profit by 15% to INR 4,056 crore (Approx. USD 531 million) during the same period. Increase of revenue from the cigarette segment is INR 6,958 crore (Approx. USD 911.6 million) which reportedly is an increase of 14% compared to the year 2020. [4]ITC Limited India is the main tobacco company in India which diversified their business into other ventures.
  • Media reported the increase of ITC Limited India shares by 2.59%. The unchanged tobacco tax during the Budget proposal for 2022-2023 presented by Nirmala Sitharaman, the Minister of Finance, was reported as the reason for this increase.[5] ITC Limited India is the main tobacco company in India, which diversified their business into other ventures.

Week 100: 6th February -13th February 2022

  • British American Tobacco Bangladesh (BATB) announced an increase of net profit by 37% to Tk 1,496 crore (Approx. USD 173.8 million) in 2021. It also reported a decrease of stock price by 2.64% to Tk 627.5 (USD 7.3) per share amidst the profit increase at the Dhaka Stock Exchange (DSE), compared to the previous trading session.[6]
  • British American Tobacco (BAT) announced an increase of revenue from heated and vaping products by more than 40% (£2 billion/ USD 2.6 billion) in the year 2021 in the United Kingdom, reportedly due to increased demand for the products. It further reported that the company revenue was £25.7 billion (USD 33.7 billion) in 2021, which was a reduction of 0.4% compared to the year 2020.[7]
  • British American Tobacco (BAT) was awarded 'Gold class distinction' in [spglobal.com/esg/csa/yearbook/ S&P Global's 2022 Sustainability Yearbook] based on S&P Global ESG Scores. S&P Global is a public company provides financial services including Data and Analytics, Research and commentary and rating and index solutions, headquartered in New York. S&P Global ESG Scores is "an environmental, social and governance data set that provides company level, dimension level, and criteria level scores based on the S&P Global Corporate Sustainability Assessment (CSA) process, an annual evaluation of companies' sustainability practices"(Image 2). [8]
A plethora of evidence exists on how cigarettes and its manufacturing process negatively impact the environment including global warming and, thus, the human health.
Image 2: BAT announcing the 'Gold class distinction' awarding. [8]
Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends the governments not to have any partnership with the tobacco industry. Such partnerships have a fundamental irreconcilable conflict of interest with public health.
    • ITC Gardenia, Bengaluru, announced the obtaining of Leadership in Energy and Environmental Design (LEED) Zero Carbon Certification. It is reportedly the third hotel accredited with LEED Zero Carbon Certification in the world after the ITC Windsor, Bengaluru and ITC Grand Chola, Chennai. The certification is awarded by the U.S. Green Building Council, reportedly a non-profit organization that works in building design and construction to develop the “prosperous, healthy and resilient communities through the transformation of the built environment” based in the United States.[10]
    • The group of ITC Hotels has launched a mobile app; ITC Hotels Mobile App, which reportedly give access to services including food delivery and room reservations. [11]
  • British American Tobacco (BAT) Malaysia announced a growth of revenue in the 4th quarter of 2021 by a percentage of 30.5%. According to the industry spokesperson the growth was "partially due to a continued recovery in the legal tobacco market" and "further easing of movement restrictions". Media reported that BAT's future revenue growth rates will be affected due to Ministry of Health's plan to impose a ban on selling smoking products to youth who are born after the year 2005 and to regulate the consumption of smokeless products (vapes and E-cigarettes).[12]
  • British American Tobacco (BAT) announced a repurchase of shares worth of USD 2 billion since "it reduced losses in its e-cigarettes business for the first time". It is further mentioned that BAT "expects USD 40 billion of free cash flow over the next five years".[13]
Repurchasing of their own shares is a tobacco industry tactic to maintain the stock price. When the company buys back its own shares from the marketplace, it increases the demand for the shares and the price.
  • Media reported that Vuse; e-cigarette brand and Camel Snus, oral tobacco brand of RJ Reynolds Vapor Company, heavily contributed to the revenue growth of BAT. The reported revenue from those products was USD 2.79 billion, which is an increase of 51.8% compared to the year 2020. [14]

Week 101: 14th February - 20th February 2022

  • Philip Morris International (PMI) has launched the Sustainability Materiality Report 2021 based on the sustainability materiality assessment. This assessment is "a formal process through which a company identifies, assesses, and prioritizes environmental, social, and governance (ESG) topics" which leads to develop the strategic framework. Media highlighted the process of assessment, findings and the PMI’s sustainability strategies. [15]
  • British American Tobacco (BAT) has announced the appointment of Senthil Vel as the Chief Medical Officer of BAT in United States. He will reportedly engage with "BAT's extensive research and development programmes". Vel has worked as the medical director and the chief medical officer at various pharmaceutical companies and the medical device manufacturing companies since 2008. He is specialised in the fields of oncology, hematology, neurology, and rare diseases. [16]
  • British American Tobacco (BAT) Kenya announced the surge of net profit to Ksh 6.48 billion (USD 57.34 million) from Ksh 5.51 billion (USD 48.76 million) in 2021. BAT plans to set the total dividend payout to Ksh 53.50 (USD 0.47), which reported as the highest payout of the cigarette company in the history.[17]
  • Japan Tobacco International (JTI) declared their plan to reduce Green House Gas emissions in the production process targeting "net-zero emissions by 2050". It is further reported that JTI "aims to be carbon neutral for its own operations by 2030" (Image 3). [18]
Plethora of evidence has revealed that cigarettes and its manufacturing process including tobacco cultivation negatively impact the environment including contributing to global warming and climate changes, thus, the human health.
Image 3: Media reporting JTI’s aim to be carbon neutral for its own operations by 2030 [18]
  • Bluehole New Consumption has published an industry comment (opinion on the industry) on British American Tobacco (BAT)’s financial results for the year 2021. It is stated that Vuse, e- cigarettes brand of BAT has a market share of 35.9% and "will soon become the largest e-cigarette brand in the United States" surpassing JUUL. Bluehole New Consumption is a "new media that focuses on the development of the new consumer industry" as stated their website. It was founded in March 2019 and it is a media platform which reports and promotes products, trends, technologies and marketing methods in vaping industry in China. As of April 2022, further details including funding sources and investors are not available. [19]
  • British American Tobacco (BAT) Kenya announced that the increase of tax paying to government has increased by 18% (Sh 2 billion) in the year 2021. It further reported the increase of BAT gross revenue by 3% (Sh 40 billion) in 2021 due to price increase in local market. [20]
Tobacco industry is known to exaggerate their positive impact on economy while ignoring the harm they inflict on the economy through premature deaths and diseases.
  • Following tobacco companies has presented in the Consumer Analyst Group of New York Conference 2022. It is organised by the Consumer Analyst Group of New York, a non-profit organisation based in New York and is reportedly conducted to share information among investors, analysts, corporate management teams, and the media.
    • Philip Morris International (PMI)[21]
    • Altria presented their plans on "investing to support its Vision, how its traditional tobacco businesses continue to support its strategies, and discuss its progress within critical environmental, social and governance (ESG) focus areas".[22]

Week 102: 21st February - 27th February 2022

  • The U.S. International Trade Commission (ITC) has barred the importation of flavored/refillable pods and cartridges compatible with Juul products by unauthorized importers. The order followed the complaint filed to ITC by Juul on July 10, 2020, granting a general exclusion order for all cartridge importers that infringe Juul patent including the product designs and the compatibility.[23]
  • A Japan Tobacco International (JTI) sponsored article stated that the JTI has empowered an Anti Illicit Trade (AIT) team in 2009 and the team has identified social media channels including Facebook which sells illicit cigarettes. It further mentioned quoting the Director of Anti Illegal Operations at JTI "Through our own initiatives over 24,500 illegal tobacco websites were removed in the UK, Ireland, Spain, France and Romania". [24]
Tobacco companies commonly commission media articles to whitewash their image and reputation. Tobacco companies are known for their involvement in the illicit trade in many parts of the world. Please visit our page Ceylon Tobacco Misleading Shareholders: The Illicit Cigarettes Issue for more details.
  • Federal Trade Commission (FTC) declared that the antitrust complaint against Altria group and JUUL Labs was dismissed by an administrative law judge for FTC. Judge stated that the Complaint Council was unable to prove the violation of the FTC Act. The antitrust complaint was made by the FTC on April 2020 based on the agreements made by Altria and JUUL violating Antitrust laws in United States. Antitrust laws are the collection of federal and state government laws that regulate the conduct and organisation of business corporations and are generally intended to promote competition for the benefit of consumers.[25][26]
  • Japan Tobacco International (JTI) announced the suspension of operation of the cigarette factory located in Kremenchuk in central Ukraine temporarily due to attacks of Russia.[27]
  • An Art exhibition titled "Embrace Friendship: Celebrating 50 Years of Japan-Bangladesh Friendship" was organised by the Japan Tobacco International (JTI) at Edge Gallery, Bangladesh. Aim of the exhibition was to showcase the "deep-rooted relationship between Bangladesh and Japan" celebrating 50th Anniversary of Japan- Bangladesh friendship on establishment of diplomatic relations. Commissioned artworks were reportedly done by Professor Anisuzzaman Anis, Department of Printmaking, Faculty of Fine Arts, University of Dhaka. Ambassador Extraordinary and Plenipotentiary of Japan to Bangladesh has participated in the inauguration ceremony and Minister for Foreign Affairs has sent a pre-recorded speech for the event (Image 4).[28]
Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends against governments having any partnership with the tobacco industry as it has a fundamental irreconcilable conflict of interest with public health.
Image 4: Media reporting opening of the exhibition celebrating 50 Years of Japan-Bangladesh Friendship. [28]
  • ITC Limited India has called for a media review to act as an Agency on Record (AOR) for media handing and media purchasing for television, print and outdoor. AOR is an advertising firm contractually authorized to purchase advertising time or space on behalf of the company. It is reported that estimated budget is around Rs 600 crore (USD 78.7 million) for ITC food and personal care products. [29]ITC Limited India is the main tobacco company in India, which diversified their business into other ventures.
  • Tanzania Court of Appeal has annulled the high court decision made to pay money for Mohans Oysterbay Drinks Limited in 2016 against British American Tobacco (BAT) Kenya. Mohans Oysterbay Drinks Limited filed a case in high court against British American Tobacco (BAT) Kenya in 2014 over termination of cigarette distribution contract claiming the unlawful termination causes damages to the supplier. In September 2016, high court ruled to pay Tsh3.2 billion (USD 1.4 million) court award for Mohans. BAT Kenya went to court of Appeal against the decision.[30]
  • Lukasz Garbowski, an investment director at Btomorrow Ventures (BTV), the cooperate venturing arm of British American Tobacco (BAT) has listed under the [Global Venturing Top 50 Rising Stars 2022]. It was organised by the Global Cooperate Venturing a “global market intelligence and publishing company that publishes news and insights through Corporate, University and Impact venturing channels” as stated in their website. It is a profit making organisation and the details of funding source is not available. [31]
  • Media reported the applications are open for the Farmers for the Future (F4F) Grant 2022, 'an Agricultural Entrepreneurship grant designed to support young people with viable Agri-Business with equity-free capital and other associated support they may require to scale their businesses". The grant was developed and sponsored by the British American Tobacco Nigeria Foundation (BATNF) with National Youth Service Corps (NYSC) members. The grant is reportedly paid up to Naira 16 million (USD 38,500). It was implemented by the FATE Foundation, a non-profit organisation to tackle the high rate of unemployment and poverty in Nigeria. [32]
Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends the governments not to have any partnership with the tobacco industry. Such partnerships have a fundamental irreconcilable conflict of interest with public health.

TobaccoUnmasked Resources

Notes

  1. ↑ 1.0 1.1 H Hammond. Reynolds American Sponsors TruAge, 3 February 2022, accessed March 2022
  2. ↑ Financial post. Philip Morris International Inc. (PMI) to Host Webcast of 2021 Fourth-Quarter and Full-Year Results, 3 February 2022, accessed March 2022
  3. ↑ Associated Press of Pakistan. Philip Morris (Pakistan) celebrates decade of good agricultural labor practices program, 1 February 2022, accessed April 2022
  4. ↑ P Akash. ITC Q3 net profit rises 15% to ₹4,056 cr, declares interim dividend, 4 February 2022, accessed April 2022
  5. ↑ Money Control News. Budget 2022 | ITC shares gain nearly 3% as tobacco, cigarette tax left untouched, 1 February 2022, accessed April 2022
  6. ↑ TBS Report. British American Tobacco stock tumbles despite 37% growth in profits, 10 February 2022, accessed March 2022
  7. ↑ The Irish Times. Vapes and heated tobacco bolster sales at British American Tobacco, 11 February 2022, accessed March 2022
  8. ↑ 8.0 8.1 British American Tobacco. BAT strikes gold again as a sustainability leader, 7 February 2022, accessed March 2022
  9. ↑ Hotelier India. ITC Hotels strengthens Southern India footprint with the launch of Welcomhotel Guntur, 7 February 2022, accessed March 2022
  10. ↑ Hoteier India. ITC Gardenia, Bengaluru accredited LEED Zero Carbon Certification by USGBC, 11 February 2022, accessed March 2022
  11. ↑ S. Sinha. ITC Hotels launches one-stop app for everything from booking to food delivery, 9 February 2022, accessed March 2022
  12. ↑ N Suhaidi. BAT prospects dependent on MoH’s move on smoking, 10 February 2022, accessed March 2022
  13. ↑ A. Ralph. Vaping helps British American Tobacco fire up £2bn shares buyback, 11 February 2022, accessed March 2022
  14. ↑ R Craver. Reynolds' e-cigarette, snus sales play key role in BAT profit increase for fiscal 2021, 11 February 2022 accessed March 2022
  15. ↑ Yahoo Finance. Philip Morris International Releases 2021 Sustainability Materiality Report, 16 February 2022, accessed March 2022
  16. ↑ Market Screener. British American Tobacco : BAT appoints new Chief Medical Officer, 17 February 2022, accessed March 2022
  17. ↑ J Anyanzwa. BAT Kenya to pay record dividend as profit rises, 19 February 2022, accessed March 2022
  18. ↑ 18.0 18.1 C Morgan. Japan Tobacco Group sets ambitious sustainability targets, 15 February 2022, accessed March 2022
  19. ↑ Business wire. Bluehole Publishes an Industry Comment on BAT 2021 Preliminary Results, 17 February 2022, accessed March 2022
  20. ↑ M. Mwita. Government nets Sh18bn in taxes from BAT, 19 February 2022, accessed March 2022
  21. ↑ Business wire. Philip Morris International Inc. to Publish a Video Presentation at the 2022 Consumer Analyst Group of New York (CAGNY) Virtual Conference, 16 February 2022, accessed March 2022
  22. ↑ Market Screener. Altria Presents as Part of the Consumer Analyst Group of New York Conference, Reaffirms 2022 Full-Year Earnings Guidance, 23 February 2022, accessed March 2022
  23. ↑ Tobacco reporter. ITC Bars Unauthorized Juul-Compatible Pods, 21 February 2022, accessed March 2022
  24. ↑ M. Pacheco. Fighting online illicit trade, 21 February 2022, accessed March 2022
  25. ↑ Reuters. Judge dismisses antitrust complaint against Altria Group, JUUL Labs-FTC, 24 February 2022, accessed March 2022
  26. ↑ Federal Trade Commission. Administrative Law Judge Dismisses FTC Antitrust Complaint against Altria Group and JUUL Labs, Inc., 24 February 2022, accessed April 2022
  27. ↑ K Matsuyama, G Huang. Japan Tobacco halts Ukraine plant as fighting intensifies, 25v February 2022, accessed March 2022
  28. ↑ 28.0 28.1 The Financial Express. JTI opens art exhibition, 27 February 2022, accessed March 2022
  29. ↑ N A Rahman. FMCG giant ITC Ltd calls for media review, 24 February 2022, accessed March 2022
  30. ↑ The Citizen. Kenya wins $1.4m case against Tanzanian distributor, 24 February 2022, accessed March 2022
  31. ↑ Market Screener British American Tobacco : BTV's Lukasz named as a rising star, 23 February 2022, accessed March 2022
  32. ↑ J Ogar. British American Tobacco Nigeria Foundation Farmers for Future Grants 2022 (up to N 16,000,000), 22 February 2022, accessed March 2022
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