• Menthol and flavoured cigarettes are widely available in low and middle-income countries (LMICs) many of which have high smoking rates
• LMICs have young populations – flavours appeal to young people, who may not understand the harms of flavoured tobacco
• Recently high-income countries have put bans in place; at the same time there has been marked growth of menthol market share in some LMICs
• There is a lack of regulation to reduce the appeal of flavours e.g. plain packs and advertising bans at point-of-sale or near schools
• Targets for new and improved bans include flavour capsules, and flavour references on packaging and cigarette sticks
• A ban on all flavourings may be easier and more effective in preventing product substitution
• A lack of data, especially in low-income countries, hinders the development of good regulation
• Multinational tobacco companies can threaten income from tobacco exports if governments attempt to put tobacco controls in place

This page covers flavoured tobacco, including menthol cigarettes, in low and middle-income countries (LMICs).¹²

Background

Flavoured tobacco products are available in various forms around the world, including products previously only used in particular regions or countries. For example in Indonesia, the vast majority of smokers use kretek, clove-flavoured cigarettes,³⁴ and they are now available in other countries.⁵⁶

Flavoured tobacco is used in waterpipe, a device which originated in middle-eastern countries and is increasingly popular elsewhere, including among young people.⁷

Here we focus on what are often called ‘conventional’ products, like cigarettes and cigarillos, which are sold by large transnational tobacco companies (TTCs): Philip Morris International (PMI), British American Tobacco (BAT), Imperial Brands (IMB, previously Imperial Tobacco) and Japan Tobacco International (JTI) (JTI also owns Nakhla in Egypt, which produces flavoured waterpipe) We summarise findings from Tobacco Control Research Group (TCRG) research on the extent of flavoured and menthol cigarette use in LMICs and the development of the market for ‘capsule’ products (cigarettes with flavour capsules in the filter).

We describe specific challenges for LMICs, including flavour regulation and evidence gathering. We then summarise flavour market evidence and research, first relating to LMICs in general and then by World Health Organization (WHO) region and individual countries (where available).

• For general background and evidence, including information on the global market, and details of specific bans and associated industry interference, see Flavoured and Menthol Tobacco.

For details of product regulation at country level, see the searchable database on the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK). For countries that are parties to the WHO Framework Convention on Tobacco Control (FCTC) progress towards implementation of relevant articles, including newer products, is detailed in the FCTC implementation database

Specific challenges for LMICs

LMICs with no ban often have other major tobacco control policy gaps that are not necessarily menthol/flavour related but worsen the negative impact of menthol/flavours.⁸ One such policy is plain, or standardised, packaging,  which can include restrictions on flavour descriptors as well as colours on packaging which are known to signify flavour (e.g. green for menthol).⁹ However, plain packaging policies have yet to be implemented in many countries, including some high-income countries, so this would be a significant challenge in LMICs. Another relevant policy is the prohibition of marketing, especially near schools.¹⁰

Governments have more conflicts of interest in tobacco growing areas as they receive much needed foreign currency for tobacco exports,  and multinational companies can threaten this income stream if governments attempt to put tobacco controls in place.⁸¹¹  However, apart from rare exceptions the tobacco industry contributes little overall to the balance of payments.¹²¹³

Regulatory challenges

The WHO published brief guidance on the regulation of menthol and flavoured tobacco which summarised some regulatory options including restrictions on: the sale of menthol branded products,  the use of menthol at noticeable levels (giving a ‘characterising flavour’),  or banning any menthol ingredients.¹⁴  The report points to likely opposition from the tobacco industry in countries or regions with an established menthol market.¹⁴ This was the case with the European Union (EU) menthol ban which only came into full force in 2020, after the tobacco industry had successfully lobbied for a delay. Testing for characterising flavour is more difficult and expensive than a ban on ingredients; this makes banning menthol as an ingredient particularly efficient for LMICs.

The WHO noted that:

“A ban on all flavour agents that increase tobacco product attractiveness, rather than focusing on menthol exclusively, can provide an alternate route to restricting menthol, and may prevent the unwanted introduction of menthol substitutes.”¹⁴

Research and data

As of 2021, when TCRG researchers conducted a review of evidence on menthol/flavour in LMICs,¹⁵ there were very few research papers from countries in Eastern Europe, the Eastern Mediterranean region, and Africa.

Lack of data means that it is hard to monitor markets and company shares in specific countries.  Market research service Euromonitor (which receives project funding from Philip Morris International) includes no low-income countries and is proprietary, making it expensive and hard to access even for the middle-income countries which are included.

More research is needed on menthol and flavour in LMICs to help governments monitor the tobacco industry and its products, as recommended by the WHO: “An evidence base using data collected from the region of interest can provide more direct support for regulation.”¹⁴

Market in LMICs

Evidence suggests menthol and flavoured tobacco products are widely used in LMICs.  Data from the International Tobacco Control (ITC) Policy Evaluation Project suggests that menthol is smoked by more than 20% of smokers in several middle-income countries. Although the dates vary (see the note above on data challenges) this research gives an indication of the scale of the problem. The highest rates were found in Zambia (42% in 2014) and Thailand (35% in 2012). Kenya and India also had over 20% menthol smokers, with China just under just under that level.¹⁶

A study from Johns Hopkins University, between 2015 and 2017, found a range of flavoured and capsule cigarettes on the market in those LMICs with the highest number of smokers: Bangladesh, Brazil, China, India, Indonesia, Philippines, Russia, Thailand, and Vietnam.¹⁷

The main TTCs operating in these countries (PMI, JTI, and BAT) mostly sold menthol or mint flavours. China National Tobacco Corporation (CNTC) sold  a mix of flavours.¹⁷

There is also evidence from a number of studies that menthol and flavour tobacco use is rising, either as a proportion of the market or substantively.  Evidence from TCRG research shows that after the implementation of the European Union (EU) menthol ban in 2020, there was a marked increase in the share of menthol/flavoured products in some LMICs.¹⁵ A study of cigarette packs in Brazil, Indonesia, the Philippines, Russia, Thailand, and Vietnam, between 2013 and 2016, found that the number of flavour capsule variants on the market was growing.¹⁸ Most were mint and menthol flavour but with others the flavour was unclear from the product name.¹⁸

A number of studies have identified related marketing activities.  Marketing strategies for flavour capsules are likely driving their global growth particularly among young people in LMICs.¹⁹

TCRG’s review  of tobacco industry strategies underpinning the growth of menthol/flavoured tobacco use in LMICs  highlighted widespread marketing in stores (including retailers near schools), on billboards, on TV, online and via brand ambassadors. The packaging of flavoured and menthol products, legally displayed in stores, was  found to be colourful with non-conventional, appealing names for flavours.¹⁵

Tobacco companies also use symbols on cigarette sticks to indicate that they contain capsules.²⁰ Researchers studying this form of marketing in LMICs have described the space on a cigarette as “valuable communicative real estate” for tobacco companies, which could be better used to display public health messages.²⁰

Research and data from specific regions and countries is summarised below. We refer in many places to TCRG research based on 2019 cigarette market data from Euromonitor. In this data ‘high market share’ means 20% or more of the total cigarette market in that country in 2019. ‘High market share growth’ means that the share doubled between 2005-19 and was growing from 2017.¹⁵ We link to regional and country profile pages on TobaccoTactics, where available.

Africa

Nigeria has high menthol/flavour market share and high market share growth.¹⁵

Cameroon has high market share, the only other country in the region for which this data was available. (For Egypt see Eastern Mediterranean region below.)¹⁵

Tanzania

JTI sells a menthol cigarette called Sweet Menthol through its subsidiary in Tanzania. It describes this product as “the leading local mainstream menthol brand”.²¹

Zambia

JTI owned brand Sweet Menthol is the third most popular cigarette in Zambia.  It is cheap and is usually sold as single sticks.²²  On its webpage for Zambia, JTI describes itself  as a leaf farming company, and does not mention that it sells cigarettes in the country. A locally owned company, Roland Imperial,  also sells menthol cigarette brands.²³

ITC survey data showed a high prevalence of menthol smokers in Zambia, with 43% of smokers choosing the product.²⁴ Menthol was most commonly used among younger smokers, those with a middle income, and those that don’t smoke every day. Over a third of smokers indicated that they thought menthol cigarettes were less harmful than non-menthol.²⁴

Kenya

ITC survey data from Kenya also suggests a high prevalence of menthol smokers.²⁴²⁵ In 2018, 21% of smokers with a regular cigarette brand smoked menthol or sweet menthol (although Euromonitor estimates that only 7% of cigarette sales are menthol).¹⁵  More women smoke menthol than men in Kenya, and two thirds of smokers believed that menthol is less harmful than other cigarettes.²⁴²⁵

Ethiopia

In 2015, Ethiopia enacted a total flavour ban on all forms of tobacco.

• For details see Flavoured and Menthol Tobacco

This was a pre-emptive ban as flavour sales were low. However there has been a lack of enforcement at the retail level.⁸ Flavoured products are not made in Ethiopia and more collaboration with customs is needed to prevent illicit importation.⁸ There is also a lack of awareness that the ban includes waterpipe products.¹⁴

Since 2017, two years after the ban was enacted, JTI has owned 70%  the state owned tobacco company, NTE.²⁶

Latin America

Menthol cigarettes are popular in Latin America, and increasingly so in some countries.¹⁵ Guatemala and Peru have high market share and high market share growth. There is high market share in Columbia and the Dominican Republic, and high market share growth in Argentina, Bolivia and Costa Rica.¹⁵

Use of flavour capsule cigarettes is particularly high in Chile and Mexico.²⁷  According to BAT’s annual report in 2014,  sales of  flavour capsule cigarettes had increased in the region despite price rises, while overall cigarette sales were down.²⁸

A study of over 1,000 retailers located close to schools in Latin American cities (Argentina, Bolivia, Brazil, Chile and Peru) found that the majority (85%) sold flavoured cigarettes, and most (71%) sold capsule versions.¹⁰ (Similar findings were reported in Uruguay, a high income country, immediately before the implementation of plain pack regulations in 2020.)²⁹

These products were frequently displayed near the point of sale, or confectionary. Some stores also had advertisements and price promotions.¹⁰ Unconventional flavour descriptors such as “fusion blast” and “ruby ice” were very common.³⁰

Brazil

Survey data from 2016-2017 among adult smokers in Brazil found that over 50% supported a ban on menthol and over 60% supported a ban on all additives.³¹ Support did not vary across sociodemographic groups. When menthol smokers were asked what they would do if menthol cigarettes were banned, a third reported they would quit, around 20% would reduce the amount they smoked and a similar number would switch to non-menthol cigarettes. Slightly fewer said they would still find a way to get menthol cigarettes.³¹

ITC survey data from the same period suggested that 8% of smokers with a regular cigarette brand smoked menthol.³² 13% believed that menthol cigarettes were less harmful than non-menthol cigarettes, and over a third reported that they were smoother on the throat and chest.  Nearly two thirds  of surveyed smokers supported a complete ban on all cigarette additives, including flavourings.³²

An online sample of women aged 16- 26 (smokers and non-smokers) preferred packs with flavour descriptors.³³

• The tobacco industry has used a range to tactics to undermine and delay Brazil’s menthol ban. For details see Flavoured and Menthol Tobacco

Chile

In 2013, Chile sought to implement a law banning substances that cause higher levels of addiction, harm or risk, leading to tobacco industry resistance and interference.¹⁴

• For details see Flavoured and Menthol Tobacco

Mexico

Studies of retailers in Mexican cities, found that the majority sold menthol and flavoured products, and more than half of stores situated near schools sold flavour capsule cigarettes.³⁴³⁵ Many flavoured cigarettes have descriptors which suggest there is a flavour, but the type of flavour is unclear: chemical analysis of dual flavoured cigarettes suggested flavours were menthol and another flavour, for example fruit.³⁶

A study in Mexico City found that colour and flavour descriptors on cigarette packs made the products more appealing, and some smokers believed they would taste better.³⁷

Guatemala

A study of convenience store retailers in Guatemala found that all sold flavoured tobacco products.³⁸

The majority (88%) of indoor tobacco advertisements in Guatemala were found to be for capsule cigarettes.³⁸

South East Asia & Western Pacific

There is high market share of menthol/flavour in India, Malaysia, Philippines and Thailand, and high market share growth in Vietnam.¹⁵  A 2010 study noted that governments in the region had no legislation banning exotic flavours of cigarettes and cigarettes with new flavours had appeared in Cambodia, Indonesia, Malaysia and the Philippines.³⁹

Philippines

Menthol has been advertised to appeal to young women in the Philippines since the 1970s with menthol brands common for many decades.⁴⁰ PMI, JTI, BAT and Korea Tobacco & Ginseng (KT&G) all sell flavoured capsule cigarettes in the Philippines.⁴¹

Menthol packs studied in the Philippines were harder than non-menthol (for capsule protection) giving a quality feel. Flavoured capsule brands had a greater technological appeal,⁴¹ and packs were rated as more attractive by young adults.⁴²

Blue and white packs were perceived to be less harmful than other colours, as were the descriptors ‘light’ and ‘cool’, whereas the term ‘strong’ was perceived as more harmful.⁴²  Researchers called for greater action and support for banning flavour additives.

Malaysia

In Malaysia, menthol cigarette marketing has been aimed at young people and women.  In the 1980s Brown and Williamson’s Newport menthol cigarettes were marketed in Malaysia with youthful American images and were sold at a cheap price point.⁴³ An internal document from 1993 reveals how the company was developing sweet and fruit flavours for the Malaysian market. ⁴³⁴⁴ A 2003 study noted that the menthol variant of Cartier Vendome (a BAT brand at the time) was described as ‘pearl tipped’ so likely to appeal to women.⁴⁵

In 2013, vanilla, mint and fruit flavoured cigarettes were on sale, and strawberry cigarette packs with pink packaging were documented.⁴⁶

China

In China ‘flavour capsule’ was found to be one of the most common cigarette terms used in online tobacco marketing.  One website explicitly linked flavour capsules with female smokers.⁴⁷

Indonesia

In Indonesia the dominant cigarettes are kreteks which are flavoured with cloves.  Industry attempts to introduce their own cloved flavoured products had failed at least to 2004.⁴⁸  In 2009 PMI and BAT acquired two domestic manufacturers which allowed them access to the kretek market.⁴⁹ In 2009 PMI launched the first super slims kretek for women and Marlboro black menthol for young men.  By 2012 BAT had launched several kretek brands. Both companies were aware that kreteks  are particularly carcinogenic due to the presence of toxic chemical compounds: Anethole, Coumarin and Eugenol.⁴⁹

In Indonesia the flip lid of the cigarette packet was used by Esse (owned by Korean Tobacco & Ginseng, KT&G) to promote the brand with phrases evoking flavour, like “sweet surprise” and “its honey”.  Research found seven cigarette brands with capsules.  Flavours included mint, menthol, berry and honey.⁵⁰

Eastern Mediterranean

There is high market share growth in in Pakistan and Egypt .¹⁵

• See also Waterpipe for information on the role of flavours in promoting these products.

Eastern Europe

Data shows that in Russia menthol/flavour has both a high market share and high market share growth.¹⁵

Other LMICs in the region with high market share growth are Ukraine, Bosnia Herzegovina, Belarus, Azerbaijan, Kazakhstan and Uzbekistan.¹⁵

Relevant Links

WHO Advisory note: banning menthol in tobacco products (2016)

WHO Case studies for regulatory approaches to tobacco products: menthol in tobacco products (2018)

WHO FCTC decision on banning waterpipe flavour (2016)

A global map of menthol bans is available on Tobacco Atlas: Product Sales

TobaccoTactics Resources

• Flavoured and Menthol Tobacco
• Menthol Cigarettes: Industry Interference in the EU and UK

TCRG Research

A growing menace: menthol and flavoured tobacco products in LMIC, M. Zatonski, K. Silver, S. Plummer, R. Hiscock, Tobacco Induced Diseases, 2022;20(April):39, doi:10.18332/tid/146366
STOP research summary (May 2022)

Marketing of flavour capsule cigarettes: a systematic review, C. Kyriakos, M. Zatonski, F. Filippidis, Tobacco Control, Published Online First: 18 January 2022, doi: 10.1136/tobaccocontrol-2021-057082[/ref]

Flavour capsule cigarette use and perceptions: a systematic review, C.N. Kyriakos, M.Z. Zatoński, F.T. Filippidis, Tobacco Control, Published Online First: 04 October 2021, doi: 10.1136/tobaccocontrol-2021-056837

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to TCRG publications.

References

The post Flavoured and Menthol Tobacco in LMICs appeared first on TobaccoTactics.

Tactics range from the exploitation of farmers and use of child labour to threats and intimidation, and a “continent-spanning spy network”. All to pursue BAT’s own commercial goals.

Examples from across the region feature on an illustrative map, and below are links to further reading which provide a comprehensive understanding of the company’s activities in Africa.

Sabotage, Deceit and Duplicity: British American Tobacco Uncovered

Significant new reports and briefings can be found on the BAT Uncovered micro-site of TCRG’s partner organisation STOP at exposetobacco.org

These cover new allegations of bribery across Africa, and dirty tricks in South Africa.

Briefing papers on BAT’s alleged capture of state agencies, potential complicity in smuggling in South Africa and alleged connection to an attempted bribery conspiracy in Zimbabwe will be published on this site in due course.

Buying Influence and Advantage in Africa

Analysis of whistleblower documents by the Tobacco Control Research Group (TCRG) at the University of Bath found a “large number of questionable payments” made by BAT over a five-year period.  This huge international corporation used these payments to influence policy and undermine competing tobacco companies, both international and local.

• Read the report summary: Buying Influence and Advantage in Africa: An Analysis of British American Tobacco’s Questionable Payments

BAT made payments impacting ten countries in East and Central Africa. They were made to politicians and civil servants, staff of competitor companies, journalists, farmers and others involved in positions of potential influence.  The use of these payments appeared to be systematized and supported by senior staff, including in BAT’s London office.

The full report details the payments and describes the serious consequences of this unethical business activity. It also suggests that governments globally should more closely examine BAT’s behaviour.

• Read the full report: “Unlawful Bribes?”: A documentary analysis showing British American Tobacco’s use of payments to secure policy and competitive advantage in Africa⁵¹

The leaked source documents are publicly available in the UCSF Industry Documents Library Africa Collection (University of California, San Francisco).

Dirty Tricks in South Africa

In the report on British American Tobacco in South Africa, TCRG researchers explain how BAT has fought to maintain its dominance of this key market over decades, in the face of increased competition and growing illicit trade. The report describes how the company has used “any means necessary” to hold its position, including paying another company to run a “massive secret surveillance and informant network in Southern Africa on behalf of BAT”.

The report details BAT’s use of third party service providers, allegedly overseen and run by senior operatives at BAT’s London headquarters.  It also explains how BAT is “yet to face meaningful consequences for its actions either in the region or at home in the U.K.” after the U.K. Serious Fraud Office (SFO) dropped its five-year investigation in January 2021.

BAT has repeatedly denied accusations of corporate espionage, corruption and law-breaking,⁵² but new analysis of leaked documents raises serious questions about BAT’s activities in South Africa, particularly in relation to tobacco smuggling and tax evasion.

The research by the TCRG was carried out in collaboration with BBC’s Panorama, The Bureau of Investigative Journalism and the Organized Crime and Reporting Project.

• Read the report: British American Tobacco in South Africa: Any Means Necessary

See also:

The BBC’s Panorama documentary programme, broadcast on 13 September 2021, which “unveils new revelations about the corrupt practices deployed by one of Britain’s biggest companies.”⁵³

• Watch ‘Dirty Secrets of the Cigarette Business’ (BBC iPlayer, UK only, registration required)
• Watch on BBC World Saturday 18 September 2021 (Africa link, switch to other regions at the bottom of the page, note times are GMT)

The Bureau of Investigative Journalism

• Read: Smoke Screen: BAT’s agents brokered bribe proposal⁵⁴
• Listen: Smoke Screen: Love, bribes, lies and spies in the tobacco industry

Victoria Hollingsworth tells the true story of corrupt practices behind the scenes at British American Tobacco. Hear from the very people caught up in this world as the Bureau sinks deep into the dirty underbelly of the tobacco industry in South Africa.

BAT in Africa: A History of Double Standards

TobaccoTactics details the history of BAT’s double standards, exposing a difference between its stated goals and principles, and its activities in low and middle-income African countries.  It includes links to earlier allegations against BAT, featured in a 2015 Panorama programme and media coverage at the time.

• See British American Tobacco in Africa: A History Double Standards

This page brings the story up to date…

• See British American Tobacco in Africa: Continuing Allegations of Misbehaviour

References

The post The BAT Files: How British American Tobacco Bought Influence in Africa appeared first on TobaccoTactics.

Here we look at the some of the research published since then which have added to our understanding of the company.

For more details on the pages published by Tobacco Tactics on British American Tobacco in Africa visit The BAT Files.

Introduction

In 2015, the BBC’s Panorama programme used documents from an industry whistleblower to highlight allegations of alleged bribery by British American Tobacco.

According to the evidence supplied by former BAT employee Paul Hopkins, the firm allegedly arranged bribes totalling US$26,000 for officials in Rwanda, Burundi and Comoros Islands. BAT insisted it conducted its business with honesty, integrity and transparency.

Even though BAT and those featured in the program issued denials about the allegations, in 2015 the Serious Fraud Office (SFO) began investigating, leading to a formal criminal investigation into BAT and associated persons in 2017.

In January 2021 the SFO concluded: “Following extensive investigation and a comprehensive review of the available evidence, the SFO has concluded its investigation into British American Tobacco, its subsidiaries and associated persons. The evidence in this case did not meet the evidential test for prosecution as defined in the Code for Crown Prosecutors.”

The SFO added that it would “continue to offer assistance to the ongoing investigations of other law enforcement partners. We thank our international law enforcement partners, and in particular the Kenyan Ethics and Anti-Corruption Commission (EACC), for their assistance in the SFO’s investigation.”⁵⁵

Document analysis

In 2021, new research was published adding to the understanding of BAT’s operations in Africa. Panorama followed up on its 2015 programme, which mainly focussed on East and Central Africa, with a new investigation into operations in Southern Africa. ⁵⁶ Alongside this STOP published its own reports.

The Tobacco Control Research Group at the University of Bath also did a deeper analysis of the Hopkins documents and a second set of documents disclosed from a court case in Uganda involving former BAT employee Solomon Muyita. Both Hopkins and Muyita had invoked BAT’s whistleblower policy.^{5758 59}

BAT payments

This analysis looked at 236 payments totalling US$601,502 made between July 2008 and May 2013 to dozens of people including politicians, civil servants, journalists, farmers and staff at competitor companies.

BAT made payments impacting 10 countries Burundi, Comoros, Democratic Republic of Congo (DRC), Kenya, Malawi, Rwanda, Sudan, Tanzania, Uganda and Zambia.

Payments took multiple forms including hand-delivered cash, bank wire transfers, spending money, cars, campaign donations, per diems, and plane tickets.

According to the research, the payments were used for two broad purposes. To obtain information and influence policy and to gather information and undermine competitors. The authors conclude:

“The available evidence suggests BAT’s use of payments in Africa was extensive, systematised, and supported at a high level within parts of the company. Payments were used to buy political and competitive advantage.”⁶⁰

According to the analysis of the documents sets, the information suggests payments were a routine part of BAT’s business practices in Africa, with senior staff aware of the practice. Third party companies, referred to as “service providers”, were contracted to undertake consultancy services for BAT to make the payments.

BAT’s official policy on corruption as stated on its website is: “Corruption causes distortion in markets and harms economic, social and political development, particularly in developing countries. Our Standards of Business Conduct make clear that it is wholly unacceptable for our companies and employees to be involved or implicated in any way in corrupt practice.”⁶¹

Influencing policy

As the original research in 2015 revealed, BAT had been aiming to influence policy changes in several countries. The analysis of these two document sets confirmed and expanded this area of concern.

Attempts were made to frustrate the passing of legislation based on the Framework Convention on Tobacco Control in Burundi, Comoros, Rwanda and Uganda. Civil servants and politicians in particular were targeted through the payments. As a result tobacco control legislation in three of the countries is still not compliant with the FCTC while Uganda had a bitter four-year battle to pass its Tobacco Control Act.

The payments were also used to undermine efforts to control tobacco smuggling. In Kenya, BAT campaigned to have its own system in place for tracking tobacco products rather than an independent one as mandated by the Illicit Trade Protocol.⁶⁰

Sabotaging competitors

BAT has a very strong market position in Africa and looks to maintain and expand that position. As such payments appear linked to gaining information on competitors – these include Mastermind Tobacco Kenya, Continental Tobacco Uganda and Leaf Tobacco & Commodities Uganda. It also targeted international rival Japan Tobacco International (JTI) which was operating in Zambia, Tanzania, Uganda, Rwanda and the Democratic Republic Congo.

Tactics used included funding a fake trade union to foment labour unrest, pay for sources inside companies and take advantage of complaints to regulators.

Other examples of payments

The evidence that BAT used payments to influence policy and damage competitors between over a number of years is not the first time that a tobacco company has been accused of such activity.

Evidence from Australia suggests that the tobacco industry may have used bribery in the 1970s to help bring down a minority Tasmanian government attempting to impose a tobacco tax, although the police inquiry cleared the politician in question.⁶² A 2000 court case brought by the European Union and its member states accused tobacco companies of bribing public officials as part of its global scheme to smuggle cigarettes.⁶³⁶⁴ Maithripala Sirisena who later became the President of Sri Lanka in 2015, alleged that, when trying to introduce large pictorial health warnings as Health Minister, BAT tried to bribe him, although this was “categorically denied” by the company.⁶⁵

The findings also align with widespread evidence from South Africa of payments to monitor and undermine competitors.

Tobacco smuggling in Mali

While the two document sets from the whistleblowers provided evidence of wide-ranging payments across many countries, another investigation in 2021 uncovered further concerns.

The Organized Crime and Corruption Reporting Project (OCCRP) had access to internal BAT documents as well as trade data and interviews with participants to document activities in the country.⁶⁶. It found that BAT took advantage of the precarious military situation and over-supplied the country with cigarettes. In doing so this keeps BAT brands in circulation; but also generates profits for jihadists and militias.

“This is their playground,” Hana Ross, a University of Cape Town economist who researches tobacco, said of the industry. “They know they can get away with stuff. It’s much easier to bribe. It’s much easier to cheat the system,’’ she said. “Governments here are generally weak. This is where they do things that they don’t dare to do in Europe anymore.”⁶⁶

A spokesperson for BAT said: “At BAT, we have established anti-illicit trade teams operating at global and local levels. We also have robust policies and procedures in place to fight this issue and fully support regulators, governments and international organizations in seeking to eliminate all forms of illicit trade.”

Further reading

BAT Uncovered

British American Tobacco in South Africa: Any Means Necessary

Buying Influence and Advantage in Africa: An Analysis of British American Tobacco’s Questionable Payments

Tobacco Tactics Resources

The BAT Files

British American Tobacco: Dirty Deeds in Africa

References

The post British American Tobacco in Africa: Continuing Allegations of Misbehaviour appeared first on TobaccoTactics.

Since the early 2000s TTCs have developed interests in e-cigarettes (also known as electronic delivery systems, or ENDS), heated tobacco products (HTPs), snus and nicotine pouches. Companies have referred to these types of products as ‘next generation products’ (NGPs) although terminology changes over time.

• See the product terminology page for more details, including terms favoured by the industry.

All of the ‘big four’ TTCs (PMI, BAT, JTI, Imperial Brands) have invested in Swedish-style snus and related products called nicotine pouches, which they have promoted as part of their harm reduction strategies.

Background

Nicotine pouches are similar to snus pouches as they are made to be placed between the lip and gum, and do not require spitting. However, nicotine pouches do not contain fresh tobacco leaf but a form of dehydrated nicotine that does not need to be kept cold.⁶⁸ The pouches also generally contain plant fibres, flavourings and sweeteners.⁶⁹ Nicotine is absorbed into the bloodstream via the mucous membranes in the mouth.⁶⁸⁶⁹ They are not new products and similar oral pouches with contents other than nicotine have been available in Sweden for many years, regulated as food.⁶⁹

TTCs have identified opportunities to market these products in countries where there is either an existing market for snus, or conversely in markets where tobacco snus is currently banned.⁶⁸

Researchers have cautioned that nicotine pouches in particular may appeal to youth and non-smokers, as they are often sold in a variety of fruit flavours, in attractive packaging, and can be used discreetly (more so than e-cigarettes).⁶⁸⁷⁰  They can also contain high levels of nicotine where unregulated.⁷⁰

“Tobacco Free”

It appears that some nicotine pouches, may use synthetic, or “tobacco-free”, nicotine (rather than nicotine derived from tobacco leaf),  creating confusion and uncertainty as to how best to regulate these products.^68717273

In its 2022 annual report, BAT states that its “current portfolio contains no synthetic nicotine”.⁷⁴ PMI states that its pouches contain “nicotine derived from tobacco”.⁷⁵ JTI and Imperial Brands do not refer to synthetic nicotine and describe their pouches as “tobacco-free”.^76777879

In 2022, the UK independent scientific Committee on Toxicity (COT) noted in a discussion paper:

“the apparent variation in how manufacturers present nicotine content and strength across different products, which may be confusing for the consumer. In addition, use of the description ‘tobacco-free’ may be misleading as the nicotine may be derived from tobacco, which raises concerns regarding carry over of toxicologically relevant contaminants (e.g., metals and nitrosamines).”⁸⁰

COT also raised concerns around the lack of specific regulations for nicotine pouches in the UK, and the absence of data other than that produced by the industry.⁸⁰ COT planned to produce a full report for the UK government in autumn 2023.⁸⁰

See below for more on regulation.

Figure 1: Images of nicotine pouch brands owned by the largest tobacco companies as of 2023. (Source: TCRG. Product images from company websites)

Cigarette Companies Investing in Nicotine Pouches

The interests of the four main TTCs are summarised below, as well as those of Altria which also sells nicotine pouches outside the US. PMI was the last to acquire this product through its purchase of Swedish Match in 2022.

British American Tobacco

In 2019, BAT introduced nicotine pouches to its portfolio, marketing them as Lyft in the UK and Velo in the US.⁸¹⁸²⁸³ A July 2019 news report suggested that BAT’s nicotine pouches were also on sale in Sweden, Italy and Tanzania.⁸⁴ BAT started  promoting Lyft /Velo in “emerging markets” in LMICs (see below).

In November 2020, BAT announced that it had acquired US-based nicotine pouch company Dryft Sciences, via its subsidiary Reynolds American Inc. (RAI), with the pouches to be sold under the Velo brand.⁸⁵ According to BAT this would give them a combined share in the US nicotine pouches market of around 10%.⁸⁵

BAT distinguished Epok, Lyft and Velo from traditional snus and allocated them to a new product category, which it called “modern oral products”.⁸¹ In November 2019, it announced that it would consolidate its NGPs under fewer brand names, and all its “modern oral” products would be sold as Velo.⁸⁶ It continues to market the product as Lyft in Sweden and Denmark.⁸⁷ It also sells nicotine pouches under its Niconovum brand Zonnic in Sweden.⁸⁸

BAT reported that it had sold 4 billion pouches worldwide in 2022, and held 69% of the market in Europe, although sales in the US had declined since 2021.⁷⁴⁸⁹ It also referred to an estimate that the global nicotine pouch market would grow by 500% by 2026, and referred to the launch of new products ranges called Velo Mini and Velo Max.⁷⁴ In 2023, BAT said that Velo was leading the market outside of the US and contributing to revenue growth.

In 2024 BAT reported that it had opened a new “innovation centre” in Southampton, UK, to focus on the development of nicotine pouches.

• For information on BAT’s other nicotine products see Newer Nicotine and Tobacco Products: British American Tobacco

Japan Tobacco International

Japan Tobacco International sells its  Nordic Spirit brand of nicotine pouches, mainly in Europe.⁹⁰⁹¹ In its 2020 integrated report Japan Tobacco stated that the pouch was sold in nine countries, and that it held 70% of the UK market.⁹²⁹³ In 2021, it said that it “prioritized Sweden, Switzerland and the UK”.⁹⁴ In 2022, JTI announced that it had test-launched Nordic Spirit in the Philippines and was planning to launch a new “formula” in the UK.⁷⁷ In 2023, new strong and extra strong spearmint flavoured pouches went on sale in the UK, to meet the “demand for stronger variants”.⁹⁵ According to the Nordic Spirit website its extra strong pouches contain 11mg per pouch (17mg per gram).⁹⁶

JTI also refers to its nicotine pouches as “modern oral” products.

• For information on JTI’s other nicotine products see Newer Nicotine and Tobacco Products: Japan Tobacco International

Imperial Brands

In May 2018, Imperial Brands announced that it had launched a version of its snus brand Skruf without tobacco leaf, called Skruf Super White, intended for sale in Sweden and Norway.⁹⁷ This product appears to have been rebranded as zoneX for the UK market in August 2019, however its direct sale in the UK was later discontinued.^{9899100  101} In 2022 Imperial’s website stated that in 2021, ZoneX  had “first launched in Sweden and Austria”, further launched in “Norway, Denmark and Estonia” in 2022 and finally made available in “Iceland and duty-free Middle East” in 2023.⁷⁸⁷⁹

In 2020, IMB had previously published an article on its Imperial Science website exploring what it described as “The Tobacco-Free Nicotine Pouch Opportunity”.¹⁰²They later said they had launched a “cutting edge bamboo fibre based product”.¹⁰³

Imperial’s website describes ZoneX users as:

“young adult nicotine users, typically 25+, urban and open-minded. They’re making lifestyle changes and favour a discreet way to enjoy nicotine.”⁷⁹

In 2023, Imperial acquired several nicotine pouch brands from Canadian company TJP Labs, to market in the US.¹⁰⁴

Altria

In 2019 Altria announced that it was acquiring an 80% share in oral nicotine pouch on! from Swiss tobacco company Burger Sohne.¹⁰⁵¹⁰⁶ It set up a new subsidiary Helix Innovations, through which it would manufacture and market the product.¹⁰⁵¹⁰⁶ Altria stated that, as on! was already on sale across the US before August 2016, it did not require pre-market authorisation from the US Food and Drug Administration (FDA).¹⁰⁵ However, by mid-2020 it had submitted 35 Pre-Market Tobacco Product Applications (PMTA) for on!, it was sold in 40,000 US stores, and Helix was increasing manufacturing capacity.¹⁰⁷ According to Altria, by the end of 2020 the number of stores selling on! had nearly doubled.¹⁰⁸ A 2020 investor transcript reported that the product was “attracting female tobacco consumers due to its spitless, white and compact format” and accounted for 30% of this type of oral nicotine product.¹⁰⁹

In 2021, Altria acquired the remaining 20% of on!.¹¹⁰ In 2022, it stated that it held over 20% of the UK nicotine pouch market, although the category was “increasingly competitive”.¹¹¹ It also stated that Helix operates internationally, although most of its oral products are sold in the US.¹¹¹ As of February 2023, the FDA had not issued marketing order decisions for any on! products.¹¹¹

Philip Morris International

At the beginning of 2021, PMI did not have a nicotine pouch product on the market. However, in a presentation to investors in February that year, the company noted the “attractive economics” of this small, but growing, product category.¹¹² CEO Andre Calantzopoulos said PMI was planning to develop a product through a “combination of partnerships and internal development”.¹¹³

In May 2021, PMI acquired Danish snus manufacturer AG Snus, manufacturer of Shiro nicotine pouches.¹¹⁴¹¹⁵ For more details see Cigarette Companies investing in Snus.

In July 2021, PMI announced that it had acquired Fertin Pharma, a company specialising in nicotine replacement therapy (NRT) type products.¹¹⁶ At this time, PMI also began referring to gums and nicotine pouches as “modern oral” products, as BAT and JTI do.¹¹⁶

• For more information see: Tobacco Company Investments in Pharmaceutical & NRT Products

At this time, PMI began referring to gums and nicotine pouches as “modern oral” products (as does BAT).¹¹⁶

In 2022, PMI acquired Swedish Match.¹¹⁷ Swedish Match specialises in snus and nicotine pouches, and does not sell cigarettes. By 2023, Shiro nicotine pouches were presented on the PMI website, along with snus, as “oral smokeless products”.¹¹⁸ Its nicotine pouch Zyn has been sold mainly in Sweden and some other European countries, as well as the US (since 2015).¹¹⁹ It also sells the Volt Pearls product in Denmark, Iceland and Sweden.⁷⁵

• For more information see Newer Nicotine and Tobacco Products: Philip Morris International and Swedish Match

In its 2022 annual report, PMI stated that the Zyn trademark had an “indefinite life due to the fast growth and the leading position of the brand in the market”.⁷⁵

The Global Market

According to a Tobacco Reporter article published in 2024, Euromonitor International values the global market at over US$10 billion and projects it to reach US$15 billion by 2027.¹²⁰ Nearly 15 billion units were sold in 2023, but they remain a small part of the market.¹²⁰

In 2023, Euromonitor analysts noted that in the US, there were over US$8.5 billion of retail sales and nearly 3% of the population uses pouches. However, the most rapid increase in sales in 2023 was in Pakistan where BAT markets Velo (see below), and they expect most growth going forward to be in Asia Pacific and Eastern Europe.¹²⁰ They also noted that most pouches were sold in the US in 2023, the other top five markets (Sweden, Denmark, Pakistan and Austria) between them sold less than a third of the units sold in the US market.¹²⁰ Other nicotine pouch markets include UK, Germany, Poland, Czech Republic, Uzbekistan, Ukraine and Indonesia.¹²⁰¹²¹

PMI’s purchase of Swedish Match immediately gave it a 60% share of the global market in 2022, a jump from almost zero in 2021. BAT held around a sixth of the global market, and Altria and Swisher (a US-based tobacco company which also sells cigars, snus and snuff, and other nicotine products)¹²² each held around a twelfth share.¹²³ The global market shares of other companies, including JTI and Imperial Brands, were negligible.

• For information on TTC interests in tobacco leaf snus see Cigarette Companies Investing in Snus.

Regulation of Nicotine Pouches

Nicotine pouches are subject to a variety of regulations around the world, from outright bans to partial or selective regulation, depending on how they are defined and classified by governments. In many cases no regulation is in place. The Institute for Global Tobacco Control (IGTC) tracks and reports regulatory approaches around the world (see below).¹²⁴ Although not all countries contribute to its Policy Scans for nicotine pouches, the most up to date information available on the IGTC database at the time of writing is referenced below.

In the UK, as of 2023, nicotine pouches are regulated under general consumer product safety regulations, not as tobacco products. They are widely available in shops and online.^80124125 Concerns have been raised over their availability to youth, and social media marketing.^80126127 The UK Department of Health and Social Care stated that it was aware of concerns, but as the use of pouches was low (in England) it did not plan to introduce further regulation at this time.¹²⁷

European Union

While there is an EU-wide ban on tobacco snus, nicotine pouches are not covered by current tobacco product regulations. This is subject to review in the next revision of the Tobacco Products Directive.¹²⁸¹²⁹ It is however important to note that individual member countries are diverging in the way they regulate these products.

Sweden has an exemption from the EU ban on snus.¹²⁹ In Sweden, pouches containing products other than tobacco and nicotine have long been regulated as food items.⁶⁹ Zonnic oral pouches (owned by RAI from 2009,¹³⁰ and BAT from 2017) were registered as an over-the-counter (non-prescription) drug in 2013, but only available from pharmacies and other regulated outlets.¹³¹ There are a range of nicotine replacement therapies (NRT) products registered under the same brand name (see below). In 2019, the Swedish National Food Administration advised that nicotine pouches should now not be regulated as food, as they were intended to be spat out and the contents were mostly absorbed through the mouth, not the stomach.⁶⁹

Elsewhere in Europe regulation varies widely. In France nicotine is classified as a poisonous substance, subject to regulation, but pouches can be regulated as a medicine for cessation purposes.¹²⁴ In Finland nicotine pouches are no longer classified as medicines, unless marketed as such.¹³² In Norway (not in the EU but a member of the European Economic Area) a total ban on nicotine pouches and other newer products was lifted in July 2021, and replaced by a market approval scheme.¹³³¹³⁴ Both tobacco-derived and synthetic nicotine pouches are regulated, but advertising and sponsorship are banned.¹²⁴

In contrast, in March 2023, Belgium announced a total ban on nicotine pouches, by royal decree.¹³⁵¹³⁶ BAT were reported to be petitioning the courts to annul the decree.¹³⁷ The Netherlands announced a ban a month later.¹³⁸¹³⁹

In 2021, the German Office of Consumer Protection and Food Safety (BVL) stated that nicotine pouches were not regulated under either the tobacco legislation or as foodstuffs and so could not be legally sold.¹⁴⁰ BAT removed its nicotine pouches from the German market that year.¹⁴⁰ Some federal states have withdrawn pouches, and some products have been classified as a health hazard due to high levels of nicotine.¹²⁴

North America

In the US, nicotine pouches are regulated by the FDA and subject to age restrictions, a nicotine health warning and pre-market assessment .¹²⁹ There are also regulations specific to synthetic nicotine.¹⁴¹ Nicotine pouches are freely available to consumers.¹¹⁹ US researchers have noted a “loophole”: as nicotine pouches were not included in the smokeless tobacco regulation, companies are able to advertise nicotine pouches on radio, TV and other media.¹⁴²

Initially the Canadian government did not authorise the sale of nicotine pouches, and issued an alert, stating that as they had not been assessed by “safety, efficacy and quality” they might contain high levels of nicotine and be harmful to health.¹⁴³ These products are now regulated, either classified as a ‘Natural Health Product’ or as a prescription drug, depending on the level of nicotine.¹²⁴ In July 2023, Health Canada authorized the marketing of BAT’s Zonnic nicotine pouch (with 4mg of nicotine) as a natural health product.^144145146147 Physicians for a Smoke-Free Canada reported that this product contains the same ingredients as BAT’s Velo,¹⁴⁶ and noted that:

“BAT will face very few restrictions on how it can market ZONNIC nicotine pouches in Canada, other than with respect to how it represents the therapeutic benefits of the product.”¹⁴⁶

Australia & New Zealand

As with e-cigarettes and heated tobacco products, nicotine pouches are banned from sale in Australia, and only available on prescription.¹²⁴

In New Zealand, oral tobacco products (including snus) and nicotine pouches are banned, unless approved as medicines.¹²⁴ (E-cigarettes are regulated, but not banned)

New and emerging markets

In some low and middle-income countries, including Argentina, Bangladesh, Georgia, Indonesia, India, and Nigeria, only tobacco-derived products are regulated as tobacco products, but not those derived from synthetic nicotine.¹²⁴ In others, including Brazil, Brunei Darussalam, Iran, and Thailand, both are regulated as tobacco products.¹²⁴ In Ukraine there are no specific regulations in place, but synthetic nicotine pouches are regulated as a food product.¹²⁴ Mauritius bans both,¹²⁴ whereas in Uruguay, nicotine pouches are categorised as a form of nicotine replacement therapy (see below).¹²⁴

At the time of writing, July 2023, nicotine pouches remain unregulated in most countries.¹²⁴

As researchers from Norway, among others, have pointed out:

“The boundaries between various tobacco and nicotine products are getting less clear, making it possible for the tobacco and nicotine industries to take advantage of the discrepancies in regulation.”⁷⁰

• The Policy Scan Project, by the Institute for Global Tobacco Control (at Johns Hopkins University), which tracks and reports regulatory approaches to nicotine pouches around the world.
• For information on tobacco regulation more broadly, see the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK).
• For countries that are parties to the WHO Framework Convention on Tobacco Control (FCTC) progress towards implementation of relevant articles, including newer products, is detailed in the FCTC implementation database.¹⁴⁸

BAT Promoting Nicotine Pouches in LMICs

BAT began marketing Lyft in Kenya in 2019, and Pakistan in 2020. In 2021, BAT said that it was also test marketing its product in Bangladesh and Indonesia.¹⁴⁹ and “consumers are familiar with other similar oral products”.¹⁵⁰ The company has identified an opportunity to market these products in countries where electronic devices are less popular, affordable, or available due to regulatory restrictions. It also referred to markets where there is was a “pre-existing ritual of oral product consumption”.¹⁴⁹¹⁵⁰

Kenya

After announcing its intention to sell nicotine pouches in Kenya, BAT launched Lyft in the country in December 2019.^84151152 In February 2020, the company announced that it was planning to build a new factory in Nairobi to produce nicotine pouches, and for Kenya to become a regional export hub for the product.¹⁵³ BAT Kenya (BATK) managing director, Beverley Spencer-Obatoyinbo said that “Given the high incidence of oral stimulant use among smokers, we believe that this new product category will provide a viable alternative to smoking”, although she presented no evidence at the time to support this statement.¹⁵³

In response to concerns about the potential impact on tobacco farmers, Business Daily Africa reported that BATK’s head of legal and external affairs stated that the company was “using proceeds from the tobacco portfolio to invest in the new categories. When the time comes, we will help them (farmers) transition to sustainable crops,” although this was “not a change that can happen overnight”.¹⁵⁴ Spencer-Obatyoinbo confirmed that BAT switching to “non-combustibles” was “not an immediate thing”.¹⁵⁴ Nevertheless, in September 2020, BAT was reported to be lobbying the Kenyan Revenue Authority (KRA) for a tax break for the product, citing its large investment and potential exports.¹⁵⁵ (According to BAT the nicotine for its pouches is currently manufactured in Switzerland.)¹⁵⁵ The Chief Executive of the International Institute for Legislative Affairs argued that this would be a “huge setback for tobacco control interventions in Kenya”.¹⁵⁶ For more information see the Kenya country profile page.

Nicotine pouches were initially registered as a pharmaceutical product by the Kenya poisons board.¹⁵⁷ This designation was challenged by local advocates.¹⁵⁷ Health Cabinet Secretary Mutahi Kagwe wrote to the poisons board, arguing that the product had been wrongly designated, and stated that it was being distributed via vending machines in contravention of the law.¹⁵⁷¹⁵⁸ Although Lyft was de-registered and effectively banned, there was a reported lack of enforcement and the product was found to still be on sale in December 2020.¹⁵⁸¹⁵⁹ In February 2021, the Kenyan government said that it was intending to classify nicotine pouches as a tobacco product under the Tobacco Control Act, making the product subject to similar marketing restrictions as cigarettes and other tobacco products.¹⁵⁸ Concerns have been raised in Kenya over potential use by children (see below).

In February 2021, BAT told investors that “In Kenya, we have temporarily suspended sales due to local regulatory challenges and continue to engage with the local authorities.”¹⁴⁹ In March it told the Kenyan media that it was planning to spend Kenya Sh1 billion (US $10 million) on marketing Lyft once the product was approved.¹⁶⁰ This included plans to set up distribution networks across 21 countries in the Common Market for Eastern and Southern Africa (COMESA).¹⁶⁰

In 2022, BAT’s nicotine pouch was back on the market in Kenya, as Velo.¹⁶¹ In its annual report, BAT stated it had “reintroduced Velo to a limited retail universe with positive early momentum, as we focus on driving guided trial.”⁷⁴

The introduction of Velo has not been without controversy, and politicians in Kenya are again asking for the product to be banned. Letters between BAT and the Kenyan Ministry of Health reveal that BAT had lobbied to reduce the size of warning labels on the product.¹⁶²

BAT has also lobbied against increased taxes on these products.^163164165

Pakistan

Velo was launched by BAT in Pakistan in December 2019, with a campaign run by Ogilvy Pakistan “positioned towards affluent adult consumers”.^166167168

A Freedom of Information Request submitted by Bath TCRG revealed that UK High Commission staff in Pakistan had attended a “social event” for Velo in February 2020. The FOI stated that “They were invited by the event coordinator and did not meet any Velo representatives at the event.”¹⁶⁹

• British diplomats have previously been associated with lobbying by BAT in Pakistan, and other LMICs. See the page on UK Diplomats Lobbying on Behalf of BAT

BAT said it was “particularly proud of Velo’s performance in Pakistan”. ⁸⁹ In its 2022 annual report, BAT stated that Pakistan was its third largest market for nicotine pouches. It said that the market was “enabled by powerful, consumer-centric digital activations”, and that it was selling over 40 million units a month.⁷⁴ These sales figures, and rapid growth, are roughly consistent with Euromonitor’s estimates.¹²³

South Africa

Unlike NRT products, nicotine pouches are not on the South African Health Products Regulatory Authority’s list of approved medicines, for which it would be subject to clinical trials and regular monitoring updates. Nicotine pouches are also not regulated as tobacco products because the nicotine is synthetic and does not fall under the definition of tobacco products in the Tobacco Products Control Act (2018). This means that they can be sold without health warnings and can be sold to those under the age of 18.¹⁷⁰

South Africa is also one of the target markets for PMI’s ZYN nicotine pouches. ¹⁷¹

Indonesia

In February 2021, BAT referred to the test marketing of its nicotine pouches in Indonesia.  BAT reported “encouraging results”.¹⁴⁹ External statistics suggest the market remained small.¹²³

Concerns Around Use by Youth

Researchers in the US have identified the risk of nicotine pouches appealing to non-smokers and in particular youth, as some products come in a range of fruit flavours and are more discreet than e-cigarettes.⁶⁸¹⁷² As of 2024, PMI was facing a lawsuit for ZYN in the US on the basis of the product being addictive and harmful to young people. The lawsuit states that PMI is benefiting from the promotion of the brand on social media. ¹⁷³The FDA has also issued warning letters and penalty charges to a number of retailers for the underage sale of flavoured ZYN nicotine pouches. As of April 2024, the FDA has not authorised the sale of ZYN products in the United States. ¹⁷⁴¹⁷⁵

Although they can only legally be sold to adults in the UK, concerns have been raised over potential use by children.⁸⁰¹⁷⁶

In 2020, there were reports that Lyft was being used by children in Kenya.¹⁵³¹⁷⁷ Children were also reported to be using the products in schools in Scotland.¹⁷⁸

In February 2021, journalists from the Bureau of Investigative Journalism published an article describing how BAT used social media influencers to promote its nicotine pouches in multiple countries, including Australia, Kenya and Pakistan. The authors argued that this was part of a campaign targeted at young people, rather than older adults trying to quit smoking.^179180181

An investigation by The Guardian newspaper in 2023 identified further promotion in the UK via social media and music events, as well as prize draws and the provision of free samples.¹²⁷

BAT also promotes Velo through motorsport sponsorship.¹⁸²¹⁸³

• See Snus: Marketing to Youth for information on earlier tobacco company marketing of the tobacco leaf product.

Industry Alliance Lobbying in the EU

The ‘Nordic Nicotine Pouches Alliance’ (NNPA) was established in Belgium in 2020.¹⁸⁴ As of March 2024, BAT and JTI are the only partners listed on the NNPA website.¹⁸⁴

The NNPA webpage states “We engage, inform, and increase knowledge about nicotine pouches”.¹⁸⁵  However, on the EU transparency register, its stated goal is to “focus on regulation concerning nicotine pouches within the European Union”, specifically the Tobacco Products Directive and the Tobacco Taxation Directive.¹⁸⁶¹⁸⁷ Jonas Lundqvist, NNPA CEO, is listed as the accredited lobbyist on the EU register.^188186187 In 2022, the estimated cost of NNPA lobbying activities was listed as €400,000-499, 999, four times the amount listed in 2021.¹⁸⁶¹⁸⁷

NNPA also runs the online news platform ‘Pouchforum’.¹⁸⁹ Articles published on the platform have accused the European Commission of misrepresenting the risk of nicotine pouches,¹⁹⁰ and suggested that the Commission does not act in a transparent manner.¹⁹¹ The site editor is Robert Casinge, also ‘Senior Partner’ in the NNPA, and previously listed as a lobbyist on the EU register.¹⁸⁷¹⁹²

Framing Nicotine Pouches as NRT

TTCs appear to be framing their nicotine pouches as a nicotine replacement therapy (NRT), which is designed to help smokers quit.^193194195 However, they are also marketing them as consumer products, including for use when it is not possible to smoke or use e-cigarettes, for example on a plane. ^196197198

In 2016, researchers in the US pointed to the implications for both product regulation and smoking cessation,¹³⁰ and the:

“blurring of the lines between cessation products and novel tobacco products and potentially confusion and misuse by consumers which may result in initiation or situational and dual use of tobacco products.”¹³⁰

All four of the main transnational tobacco companies have conducted their own research on nicotine pouches, published on their science websites.

BAT markets Niconovum NRT products, in the US and Sweden under the brand name Zonnic; in Sweden, Zonnic products include nicotine pouches.^88199200 In 2020, BAT also rebranded its Revel nicotine lozenge as Velo – the same brand as its nicotine pouch – in the US (and submitted it for pre-market approval). ²⁰¹²⁰²

In its 2022 annual report, BAT stated that “[t]he weight of evidence suggest Modern Oral nicotine pouches have a profile that is comparable to nicotine replacement therapy products”. It cited BAT’s 2021 research on Velo, which compared snus, nicotine pouches and NRTs.⁷⁴²⁰³ However, the 2022 report then went on to acknowledge “low levels of average daily consumption and high poly-usage”, leading BAT to submit a further PMTA for a “superior” product.⁷⁴ As of February 2023, no Velo products had received pre-market approval in the US.⁷⁴ At the time of writing, it was not yet clear how BAT planned to promote its Zonnic nicotine pouch after it was approved for sale over-the-counter in Canada in July 2023.^144145147

BAT’s science website presents its research on nicotine pouches, as well as a summary of the ‘Snus and the Swedish Experience’.²⁰⁴ For more background on this topic see The Swedish Experience.

PMI acquired Fertin Pharma in 2021, stating that Fertin was a “leading producer of Nicotine Replacement Therapy (NRT) solutions”.¹¹⁶ PMI has also referred to the “medical” or “pharmaceutical” grade nicotine in its products.⁷⁵²⁰⁵ (Read more about on PMI’s acquisition of pharmaceutical companies.)

PMI’s science website presents its research on nicotine pouches.²⁰⁵ It does not refer to its snus products on these pages.^205206207

Imperial Brand’s science website has cited evidence on tobacco-leaf snus and other next generation products (NGP)s to support its statement that “these products are more satisfying – and acceptable – to adult smokers than traditional nicotine replacement products (NRTs) like patches, lozenges, and gums”.¹⁰²  However, the evidence it cites pre-dates the widespread sale of nicotine pouches by TTCs: the 2016 report from the Royal College of Physicians (RCP) refers only to Zonnic and does not discuss satisfaction of acceptability of the product.¹⁹⁵

Imperial refers to its use of “high purity pharmaceutical grade nicotine”.¹⁰²²⁰⁸ In May 2021, Imperial published its “comprehensive scientific assessment” of its nicotine pouches, in comparison to cigarettes.²⁰⁹

Japan Tobacco‘s science website does not feature nicotine pouches, although it includes  its research on these products.²¹⁰

Environmental Impact

The impact of cigarette filters on the environment is well documented. More recently, the impact of single use, or ‘disposable’, e-cigarettes has been highlighted

As the nicotine pouch market grows the disposal of these single use products is an emerging concern.²¹¹²¹²

On its website, BAT states that the Velo plastic cans are being upgraded to use single polymer plastics in order to “align with the group’s ESG ambitions”. ²¹³

TobaccoTactics Resources

• Snus
• Cigarette Companies Investing in Snus
• Newer Nicotine and Tobacco Products
• Harm Reduction

TCRG Research

• S. Peeters, A. Gilmore, Understanding the emergence of the tobacco industry’s use of the term tobacco harm reduction in order to inform public health policy, Tobacco Control, 2015,24(2):182-189

For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

The post Nicotine Pouches appeared first on TobaccoTactics.

Article 17 of the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) encourages parties to promote sustainable alternatives to tobacco farming.²¹⁶ There is a consensus that diversification programmes, designed for the local context, can improve farmers’ livelihoods.

Despite a global trend of decreasing tobacco consumption from 2000 to 2020,²¹⁷ and an overall worldwide decline in tobacco leaf production during the same time period,²¹⁸ tobacco remains a popular cash-crop choice for many farmers, especially in low- and middle- income countries (LMICs) where the vast majority of tobacco farming takes place.²¹⁹²²⁰  The global fall in tobacco leaf production has been accompanied by a production shift from Europe and other high income countries, towards lower income countries like Malawi, Kenya, Uganda and Zambia^218221222

The tobacco industry portrays tobacco farming as economically advantageous for governments and especially for farmers. Other claims include that it helps improve resilience, empowers low-income populations and strengthens communities, while the industry also tends to minimise the risks of tobacco growing for health and the environment.^223224225

In reality, tobacco farming often leads to economic hardships, labour exploitation, environmental degradation, and health problems for farmers. Farmers often have less influence within the political process than non-tobacco growers in the same area.²²⁶

Image 1: Tobacco leaf drying (Source: Shutterstock)

The myth of economic prosperity

According to the tobacco industry, tobacco cultivation promises high rates of return for investing in tobacco crops and long-term benefits to smallholder farmers.^223224225

However, tobacco growing is often less profitable for farmers than other crops, and tobacco-growing families are poorer than comparable non-tobacco-growing households.²²¹²²⁷ In Lebanon, research has shown that small scale production is so unprofitable that it would not be possible without government subsidy.²²⁸

Evidence shows that the labour costs of growing tobacco are enormous, as much as double the labour needed to produce other similar crops. For example, tobacco is amongst the most labour-intensive crops in Kenya, requiring over 1,000 hours of unpaid labour to produce one acre of tobacco.²²⁹ The number of hours needed for tobacco growing stops families spending time attaining educational qualifications or developing skills that might lead to more lucrative livelihoods.

Tobacco growing also creates specific vulnerabilities for farmers:  they depend on tobacco companies for inputs and technologies, and are exposed to fluctuations in the price of tobacco leaf.²³⁰

In its reporting, the tobacco industry minimises the low rates of return on investment for tobacco growing and downplays the financial risks for the farmers. For example, BAT reported that in Kenya, tobacco farmers can either grow food for their families’ needs or have sufficient profits to purchase food.²²³ A 2020 study of tobacco farming in Kenya instead shows that most tobacco farmers are stuck in unprofitable ‘contract farming’ systems and 10-15% are food insecure.²²⁹

Contract farming

Most tobacco farmers work under a contract system with leaf buying-companies or directly with transnational tobacco companies like BAT.²²⁹²³¹

Under these systems, farmers receive inputs like plants, fertiliser and machinery at the start of the season from leaf-buying companies, without having to pay for these upfront. In return, they commit to selling their tobacco to the leaf merchant. However, leaf prices are dictated by the buying companies, who often set these very low or reduce them during the contract period. Leaf buyers often use tobacco grading, or the classification of leaf quality, to reduce the offer price, often in disagreement with farmers.^229232233 Leaf buying companies can also deduct unfairly high costs from the payment they offer farmers, to pay back the inputs they initially provided.²²⁹

Contract farming rarely produces the high returns promised by tobacco and leaf-buying companies. Instead, contract farmers remain stuck in ‘bonded labour’: debt cycles where they never earn enough to repay their debts.^229231233234 Contracted farmers often have to rely on the unpaid labour of family members and children in fields in order to meet contract requirements.²³¹

Farmers often understand that this contract system for tobacco farming is risky but agree to this work because they lack the credit to pursue other economic opportunities. Contract tobacco growing guarantees them the income, however low, that they need in order to pay for basic necessities like healthcare and education.²²¹

The COVID-19 pandemic and profitability

The COVID-19 pandemic worsened the struggle of farmers to find fair prices for their tobacco leaf. In Malawi, farmers reported receiving less than half of the expected rate for their tobacco leaf at auction.²³⁵ Fears that crowded auction floors and direct contact between growers and buyers would promote transmission of the virus prompted Zimbabwean authorities to delay the opening of the tobacco market selling season.²³⁶²³⁷ Once the markets did open, new regulations stated that individual farmers would not be allowed onto auction floors where they could observe buyers; tobacco association representatives would instead sell leaf on behalf of farmers.²³⁷

• For more information on the tobacco industry and COVID-19, see our page on COVID-19

The climate crisis and profitability

The climate crisis in tobacco-growing regions makes profits from tobacco growing more unreliable.

In Zimbabwe, shorter and more erratic rainy seasons decrease the quality and quantity of tobacco crops, especially for smallholder farmers who can’t afford irrigation systems and rely on rainfall instead.²³⁸

In the tobacco-growing region of Temanggung, Indonesia, the phenomenon of late tobacco harvesting seasons has become increasingly common. In this region, farmers have been losing income, as companies purchase tobacco leaf from other regions where harvesting happens earlier in the year.²³⁹

Farmers in tobacco growing regions that are heavily impacted by the climate crisis have been developing adaptation and mitigation strategies to maintain the profitability of their tobacco crops, such as irrigation systems and later harvesting. However, research indicates that “even with these adaptations tobacco and maize are riskier crops to grow than traditional grains.”²³⁸²⁴⁰ soil degradation,²⁴¹²⁴² biodiversity loss,²⁴³ the use of pesticides,²⁴⁴²⁴⁵ and adverse effects on farmers’ health.²⁴⁶ Despite this, tobacco companies use ESG rankings and accreditations to clean up their image.²⁴⁷

• For more information, see the page Tobacco and the Environment

Image 2: A farmer carrying a bundle of tobacco leaf (Source: Shutterstock)

Vulnerable communities

Together with the narrative of economic prosperity comes the myth that impoverished and vulnerable communities are empowered. Philip Morris International (PMI) published a report in April 2020, focusing on the empowerment of women for change in its supply chain. In this report, PMI argued that it works to “empower women to play an active role in improving the household economic condition but also in enhancing the overall wellbeing of their children and maintaining a safe work environment” on tobacco farms.²⁴⁸ However, a study in Zimbabwe concluded that women in households growing cash crops, in particular tobacco, were more likely to be disempowered.²⁴⁹ A study conducted in China, Tanzania and Kenya concluded that few women in tobacco growing households in Tanzania and Kenya had any financial decision-making power. Women also face particular harmful effects to their health while working on tobacco farms, including the risk of miscarriage while pregnant.²⁵⁰

All four transnational tobacco corporations present a strong and compelling narrative around tobacco farming: that it will improve livelihoods, strengthen communities, provide good working conditions and deliver financially stable futures for farmers.^251252253254 For example, Japan Tobacco International (JTI) states on its website that “Growers know they will receive meaningful support that not only leads to improved yields and profits, but that also help improve the social conditions and quality of life in their communities.”²⁵⁵

However, a WHO report on tobacco and the environment published in 2017 found that the long-term consequences include “increased food insecurity, frequent sustained farmers’ debt, illness and poverty among farmworkers, and widespread environmental damage”.²³² Tobacco farmers end up having to dedicate intensive labour hours to produce tobacco leaf, in inadequate working conditions, with low wages and unfair conditions that include child labour (see below).

• For more information on the tobacco industry narratives around farming see International Tobacco Growers Association

Health risks to farmers

Tobacco leaf production has many health risks, which are frequently underreported by the tobacco industry.

According to the World Health Organization, “each day, a tobacco worker who plants, cultivates and harvests tobacco may absorb as much nicotine as found in 50 cigarettes”.²²⁰ Nicotine poisoning, also known as green tobacco sickness, occurs as a result of exposure to wet tobacco leaves during tobacco cultivation. Children are more likely to develop green tobacco sickness, not only because they have a relatively smaller body size, but also because they have not yet built up the nicotine tolerance which is needed protect them from these side effects.²²³ Avoiding nicotine poisoning when working with tobacco plants is difficult, even when wearing protective equipment. BAT reported several cases of green tobacco sickness in its Brazilian farming operations, despite workers having worn protective equipment.²²³

Another risk resulting from tobacco farming is the exposure to agrochemicals, including pesticides. Researchers found that in Kenya, 26% of tobacco workers showed symptoms of pesticide poisoning;²⁵⁶ in Malaysia, this number was higher than a third.²⁵⁷ In Bangladesh, where weed killer is frequently used in tobacco fields, significant levels of chemicals were also detected in local water sources, killing fish and soil organisms needed to maintain soil health.²⁵⁸

The risk of exposure to agrochemicals is generally lower for tobacco farmers in high-income countries than in LMICs, where the regulation of chemicals tends to be weaker.²⁴¹ Dichlorodiphenyltrichloroethane (DDT) plus eleven other persistent organic pollutants used in agrochemicals are banned in high income countries, but not in some LMICs.²⁴¹²⁵⁹ Pesticides are often sold to tobacco farmers in LMICs without proper packaging or instructions.²⁴¹²⁵⁹ The health effects that derive from chronic exposure range from birth defects and tumours to blood disorders, neurological diseases and depression.²⁴¹²⁵⁹ Even tobacco workers who do not directly mix or spray chemicals, like harvesters, can be exposed to significant levels of toxins and are susceptible to pesticide poisoning.²³²

Child Labour

Child labour is a prevalent and long standing issue in the tobacco farming sector.²⁶⁰

Children involved in the growing stages of tobacco farming take part in labour-intensive activities,²⁶¹ which poses risks to their health,²⁶²²⁶³ and limits their access to education.²⁶⁴²⁶⁵

Children working in tobacco farms are also more vulnerable to the health risks than adults, including the impacts of absorbing nicotine.²⁶⁶

Many of the children working in tobacco fields in Kenya report handling fertilisers and chemicals, endangering their health.²²⁹²⁶⁶

Tobacco farming and the FCTC

The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) is an international treaty that aims to reduce the demand and supply of tobacco.

It recognises that as countries and governments adopt measures to reduce the demand of tobacco products, they must also address the consequences of this demand reduction on tobacco farmers who rely on these crops for their livelihoods.²⁶⁷

Specifically, article 17 recognises the need to:

“promote economically viable alternatives to tobacco production as a way to prevent possible adverse social and economic impacts on populations whose livelihoods depend on tobacco production.”²¹⁶

The tobacco industry argues that tobacco control policies threaten the economic benefits  that it claims tobacco growing brings to local farmers.²¹⁶However, other crops can provide much more sustainable alternatives. In addition, demand reduction happens slowly, allowing farmers to diversify their crops gradually, reducing the economic impact.²¹⁶

Parties to the WHO FCTC also have an obligation to:

“have due regard to the protection of the environment and the health of persons in relation to the environment in respect of tobacco cultivation and manufacture within their respective territories.” ²⁶⁷

• For more information see the page on Tobacco and the Environment

Corporate Social Responsibility and Environmental, Social and Governance

In response to increasing scrutiny over environmental degradation and the use of child labour in the tobacco supply chain, transnational tobacco companies have invested in Corporate Social Responsibility (CSR) initiatives which they describe to their shareholders in their Environmental, Social and Governance (ESG) reports.²⁴⁷

• For more information, see the pages on CSR: Child Labour, and the Eliminating Child Labour in Tobacco-Growing (ECLT) foundation

The tobacco industry has also been involved in CSR programmes supporting farming diversification in tobacco growing regions, despite the FCTC specifically recommending that “policies promoting economically sustainable alternative livelihoods should be protected from commercial and other vested interests of the tobacco industry”.²¹⁶²⁶⁸

• See Greenwashing in Malawi and the Centre for Agricultural Transformation (CAT)

PMI’s ‘Agricultural Labour Practices’ (ALP) Programme

On 10 December 2020, PMI published an article seeking to celebrate the International Day of Human Rights by promoting its achievements around its Agricultural Labour Practices (ALP) program. This programme was created by PMI in 2011, seemingly aiming to end child labour and protect workers’ rights and livelihoods.²⁶⁹

According PMI’s ALP 2020 report, the key principles of the programme include “no child labor, no forced labor or human trafficking, fair treatment, safe working environment, fair income and work hours, freedom of association, and terms of employment”.²⁷⁰ However, the timeline below (Image 3) from the same report, shows how, despite the programme having run for 9 years, PMI continues to use child labour in its supply chain. The company has given itself a further 5 years to end the practice.²⁷⁰

Image 3: Timeline of the ‘Agricultural Labor Practices Program’ (Source: Philip Morris International, ALP program 2020 report)²⁷⁰

• For more information on PMI’s ALP programme, and how tobacco companies fail to properly measure or manage the effectiveness of this type of initiative, see CSR: Child Labour

TobaccoTactics Resources

• Greenwashing
• Tobacco and the Environment
• CSR: Child Labour
• Tobacco Supply Chain Database: addressing the supply side of the tobacco epidemic

Relevant Links

• TCRG blog Supplying the deadly tobacco industry
• WHO World No Tobacco Day 2023: Grow food, not tobacco includes a myth buster on Tobacco growing
• WHO report: “Tobacco and the environment”
• Tobacco Atlas

TCRG Research

For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

The post Tobacco Farming appeared first on TobaccoTactics.