Tag Archives: tobacco wholesaler

Zimbabwe: U.S. $344 Million Tobacco Sold

Tobacco worth US$345,2 million has been sold through the auction and contract market at a seasonal average price of US$2,78 per kilogramme.

At day 105 of the tobacco selling season, 125,7 million kg had been sold compared to 107 million kg the same period last season.

The Tobacco Sales Floor, which opened earlier than other auction floors is leading in sales with more than 31,6 million kg.

Dry tobacco

Dry tobacco

Boka Tobacco Floors and Millennium Tobacco Floors have recorded sales of 14,7 million kg and 9,5 million kg respectively.

Order has returned at the three auction floors as few farmers continue to deliver their crop for sale.

Millennium marketing and financial manager Ms Kudzayi Hamadziripi said there was less activity at the auction floors as tobacco deliveries have drastically dropped.

“Tobacco deliveries are still trickling in and the volumes have continued to decrease.

“We are now averaging 400 to 500 bales per day and there is uncertainty the volumes may reach the target of 170 million kilogrammes,” she said.

From the surveys carried out by MTF, most farmers no longer have tobacco and it seems this year’s projections were exaggerated. A local tobacco expert said the estimates were reached at considering the amount of seed sales and this does not necessarily translate to tobacco planted.

“There is need for the tobacco industry to come up with correct projections as these help stakeholders in planning for the season,” she said.

Last season the tobacco output target was revised upwards three times.

Least year more than 120 million kg were sold during the tobacco selling season and this year the industry was expecting 170 million kg of the golden leaf to go under the hammer.

From the current deliveries and speculations that the season might end early next month, there are possibilities that the targeted figure will not be met.

This year is the second time that the country has passed the 100 million kg mark, an indication that the country is regaining its status as one of the world’s major tobacco producers.

Star Scientific Dissolvable Tobacco Products are Not Subject to FDA Regulations

Tobacco manufacturer Star Scientific Inc. stated that the Food and Drug Administration has informed the company that two of its dissolvable tobacco pastilles are not covered by the law controlling tobacco, clearing the way for them to advertised and sold.

The Virginian tobacco company, which sold dissolvable tobacco products since 2001, declared that FDA’s Center for Tobacco Products state its Ariva-BDL and Stonewall-BDL products are not affected by the regulation.

Ariva dissolvable tobacco

The news led Star’s stock up 33%, or 9% to $3.95. Star Scientific has requested FDA to identify the products as “updated risk” tobacco products under a 2009 law.

The company stated that pastilles contain “below detectable levels” of particular cancer-causing chemicals detected in tobacco and its smoke. The pills possess tobacco’s addictive ingredient, nicotine. Star Scientific has declared that its method of tobacco growing and processing creates tobacco leaves with minimum levels of certain carcinogens.

The way how FDA controls “modified-risk” tobacco products is being thoroughly observed by the public health community and leading tobacco enterprises, which are in search of new products to sell as they face dropping cigarette demand.

But Star Scientific stated the agency’s notifications from Dr. Lawrence Deyton, the center’s chief declared, “Currently only cigarettes, smokeless tobacco and roll-your-own tobacco are subject to the given law” and that basing on the company’s submissions, the products are not controlled by the regulation.

At a conference, the FDA stated that it acknowledges there is vagueness whether nicotine-containing products produced from tobacco should be controlled as drugs or just as tobacco products. The agency also said that it is examining its legal and monitoring options concerning these products.

Star Scientific had supposed the tobacco product come under the administration of the Center for Tobacco Products, and the company was rather surprised by the agency’s decision, representative Sara Troy Machir stated in an interview. However the difference may come in how the product is produced.

“Of course they are true tobacco products under the definition, but when we analyze the manufacturing process that is where we have problems because it is completely confidential information,” Machir stated.

The FDA scientific advisory panel should complete by March its report and present advices on the products, which are sold by the Star and other tobacco manufacturers. FDA also has revealed its concerns that dissolvable tobacco products contain a lot of nicotine and could in particular attract children and young people.

Foreign Direct Investment In Tobacco Production Can Be Banned

Government plans to prohibit foreign direct investment (FDI) in tobacco production. The cabinet noted that this decision was prepared by the ministry of commerce and industry and extended among the other ministries of the cabinet committee on economic affairs (CCEA).

Foreign direct investment

This ban on FDI in producing of cigarettes will affect the most actual foreign tobacco buyers, and of course the future tobacco investment purposes in the country. Nevertheless, it will not influence their investitures in India. For example, actually, three major global Tobacco Companies (players) — Japan Tobacco, British American Tobacco (BAT), and the Altria Group – all have big tobacco investments in India.

The cabinet also proposed to prohibit the votes for foreign companies to make cigarettes for domestic consumption only.

In the end all the main ministries have given their approbation to ban FDI in cigarette manufacturing. These approves were then sent to the industry and commerce ministry on February 3rd, and then finance ministry accepted the ban too. Although, the Planning Commission has also supported the new law, health ministry proposed also to enter cigarette in the list of activities that are banned for FDI. So, 100% FDI is allowed in the branch with superior government approval.

If the cabinet accepts the new proposal, then it will influence the plan of Japan Tobacco, with its personal brand like Camel, for to increase its venture in Indian from 50% to 75%, with an investment of $100 million. At present, the remains 50% in the company are owned by KK Modi group.

BAT also desire to increase its ventures in ITC from 31.8% to 51%. In 1996-97, BAT attempt to hike wager was opposed by the financial establishments’ candidates. But now if this ban will be accepted by CCEA, BAT would not raise its stake in ITC and it will remains to be at least professional company without any sponsor. In Godfrey Philips India, Altria group owns 25% wager. This company also has recently launched its famous brand Marlboro in India.

The intention to ban FDI in tobacco manufacturing was even on January 23, 2009, but it was not approved. That’s why the CCEA at the beginning of this year decided to send it proposal to Government for to be approved finally.

Tobacco wholesaler indicted in untaxed cigarette probe

A federal grand jury in Seattle has indicted a New York State tobacco wholesaler in a recent crackdown on a smoke shop near Arlington run by former Stillaguamish tribal leaders who were selling millions of cartons of untaxed cigarettes.

Cigar wholesale shop

The indictment against Arthur “Sugar” Montour, 37, of Perrysburg, N.Y., alleges that he lied in sworn statements about selling cigarettes to the smoke shop in proceedings seeking forfeiture of more than $50,000 paid to him by the smoke shop. In March, three former Stillaguamish tribal council members, Edward Goodridge Sr., 60, Edward Goodridge Jr., 33, and Sara Lee Schroedl, 40, were sentenced to federal prison for making millions of dollars dealing untaxed smokes out of the Blue Stilly Smoke Shop.

In 2007, agents seized millions of cigarettes from the group and said they had generated nearly $55 million in revenue – without paying the $25 million in state taxes owed.

Prosecutors say some of the cigarettes were purchased from Montour’s company, Native Wholesale Supply in New York. They went after about $50,000 that the Blue Stilly shop paid that company for the smokes.

The indictment says Montour filed declarations with the court saying the Blue Stilly never ordered from his company, and denying that he operated a warehouse in New Mexico. Montour is due in court in Seattle next week.