Tobacco International - December 2019 • Tobacco Products International - Quarter 4, 2019

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The authority on the tobacco industry since 1886 December 2019

How Modular Design Makes a Difference in Rotogravure Printing PRESSURE MOUNTS ON GERMANY’S DOMESTIC TOBACCO BUSINESS

THE WORLD’S MOST FAMOUS FORMER SMOKER AND WHY HE HAD TO QUIT

THE PLAIN PACKAGING DEBACLE IN GREAT BRITAIN

UNIVERSAL ACQUIRES A FRUIT AND VEGETABLE PROCESSOR

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DECEMBER 2019

TI TABLE OF CONTENTS 14

A LOCKWOOD PUBLICATION

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tobaccointernational.com

The authority on the tobacco industry since 1886 December 2019

How Modular Design Makes a Difference in Rotogravure Printing

32

PRESSURE MOUNTS ON GERMANY’S DOMESTIC TOBACCO BUSINESS

22

THE WORLD’S MOST FAMOUS FORMER SMOKER AND WHY HE HAD TO QUIT

THE PLAIN PACKAGING DEBACLE IN GREAT BRITAIN

UNIVERSAL ACQUIRES A FRUIT AND VEGETABLE PROCESSOR

TI_Dec19_CVR1_nobox.indd 1

12/6/19 3:07 PM

ON THE COVER How modular design makes a difference in rotogravure printing.

Photo: DCM ATM

26

The world’s most famous former smoker and why he had to quit.

By Bob Crew

FEATURES

30

13

PMI ventures into the printing industry. Staff Report

When Compliance is Portrayed as Non-compliance: The plain-packaging debacle in Great Britain. By Bob Crew

14

32 Universal acquires a fruit and

The Difference modular design makes in rotogravure rrinting.

Staff Report

22

Pressure will mount on Germany domestic tobacco business.

By Eugene Gerden

vegetable processor.

From Company Dispatches

DEPARTMENTS 8

Editorial

10 TI Digest

36

Why 2019 was almost universally bad for farmers. By Chris Bickers

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36 Leaf News 38 Calendar, Advertiser Index

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progress

TI EDITORIAL When a Little Simplification Goes a Long Way I just received an interesting dispatch from British American Tobacco (BAT). It said the company is creating three global brands for its New Category product portfolio: Vapor products will be branded VUSE; modern oral products will be branded VELO; and tobacco heating products will continue to be branded glo.

This was a welcome change for me—I was having a dickens of a time keeping all those products separate.

The statement went on to explain the reasoning for the change.

“BAT has long been focused on offering adult consumers a range of products with reduced-risk potential in comparison to cigarettes,” it said. “Since launching its first e-cigarette in the UK in 2013, BAT has made impressive progress, now offering a range of innovative products in more than 40 countries around the world and investing over $4 billion in the development, manufacture and commercialization of these products.”

BAT will now focus its marketing resources and investment on developing three strong, trusted international brands that will compete on the global stage. This announcement marks the beginning of a brand migration and consolidation program worldwide supporting these three priority brands.

British American Tobacco’s Chief Marketing Officer, Kingsley Wheaton, said: “We understand global brands are important for our worldwide consumers—brands that they can trust, recognize and buy wherever they are in the world. We want to lead the industry across all our New Category products and believe the time is now right to simplify our brand portfolio, creating three strong, recognizable and trusted global brands. For these new consumer categories, both quality and trust are vital and this step further supports BAT’s leading ambition in the industry.”

Beyond the clearer focus for marketing investment around the world, this move will simplify the consumer experience, enabling easier navigation of BAT’s product portfolio, while portfolio focus will drive greater awareness and resonance amongst adult consumers. The brand migration is now under way, with the consolidation set to be complete across all the countries on a phased basis by the end of 2020.

Here is the article lineup for this issue: PMI ventures into the printing industry and in the process spearheads a new way to print digitally on cardboard pack (page 13), DCM ATN’s rotogravure printing machines permits a wide range of printing options thanks to their modular design (page 14), Germany plans to tighten pressure on its domestic tobacco business (page 22), The World’s Most Famous Former Smoker and why he had to quit the habit, (page 26), the plain-packaging debacle in Great Britain (page 30), how the acquisition of a fruit and vegetable processor and supplier provides new growth opportunity for Universal Corporation (page 32) and bitter reports from the U.S. and Zimbabwe on how hard farmers were hit by bad weather in the 2019 growing season.

I hope you enjoy this issue, and please look forward to our next one, labeled January/February 2020.

— Christopher Bickers, Editor-In-Chief

PUBLISHER & PRESIDENT

Robert M. Lockwood EDITOR-IN-CHIEF

Christopher Bickers PRODUCTION COORDINATOR

Melinda Ayala ACCOUNTANT

Roxanne Cordova Melendez accounting@lockwoodpublications.com

CONTRIBUTORS INTERNATIONAL TOBACCO

Dr. Iqbal Lambat (ISTANBUL,

TURKEY)

ECONOMIC COLUMNIST

John Parker (RICHMOND,

VIRGINIA)

REGIONAL

Mumtaz Ahmad (ISLAMABAD, PAKISTAN) Diamantis Chras (PIRAEUS, GREECE) Bob Crew (LONDON, ENGLAND) Eugene Gerden (MOSCOW, RUSSIA) Guido Jungbluth (SANTA CRUZ DO SUL, BRAZIL) Manfred Körner (HAMBURG, GERMANY) M. Rifaat Naguib (CAIRO, EGYPT) Vladislav Vorotnikov (MOSCOW, RUSSIA)

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Volume 19, No. 8 TOBACCO INTERNATIONAL (ISSN 0049-3945 print; ISSN 2331-8481 online), established in 1886, is published six times a year, with two monthly issues (September & December) and four combined issues (January/February/March, April/May/June, July/August, October/November) plus a directory issue published in January of each year by Lockwood Trade Journal Co., Inc., 3743 Crescent Street, Second Floor, Long Island City, NY 11101, USA. Officers: Robert M. Lockwood, president and treasurer. Subscription rates: USA—US$49 per year, US$74 for two years; US$109 for three years. Canada—US$59 per year, US$89 for two years, US$134 for three years. All other countries: International Surface Mail—US$89 per year; US$139 for two years; US$199 for three years. International AirMail—US$129 per year; US$199 for two years; US$289 for three years. Single copy price: US$15.

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8 TOBACCO INTERNATIONAL DECEMBER 2019

teamwork

TI DIGEST Japan Tobacco has cut the price of its Ploom S Starter Kit by half in Japan.

The kit includes the Ploom S device which heats tobacco sticks, a micro USB cable, and an AC adapter. Japan is the world’s biggest market for heat-notburn products, as the country bans the sale of liquid nicotine vaping products.

JAPAN JT Cuts Ploom S Price by Half tokyo—Japan obacco will lower its recommended nationwide retail price for its heat-not-burn product Ploom S Starter Kit by about half from 7,980 yen to 3,480 yen.

The price rise will go into effect December 1 and seems to reflect consumer feedback and competition from Philip Morris’ IQOS products.

In October, the company said fewer people than expected were trying out and switching to Ploom S, amid strong competition from Philip Morris’ IQOS, cutting its annual profit outlook to 505 billion yen ($4.65 billion) compared with a previous forecast of 518 billion yen. For the third quarter, operating profit fell 26% year-on-year to 129 billion yen.

“JT has decided to lower the price to enable more consumers to access and enjoy the product,” the company said in a statement.

SOUTH AFRICA JTI Declared Number One Top Employer in Africa johannesburg—JTI has been certified as the number one Top Employer in Africa and has also retained its elite status of Top Employer Africa for the third consecutive year.

At a country level, the company was also certified in ten African countries— one more than the previous year. Seven

of these countries—Algeria, Egypt, Morocco, South Africa, Sudan, Tanzania and Tunisia—have been accredited for a third consecutive year, with Nigeria and Zambia achieving their second year of accreditation and one additional country for this year—Malawi.

UNITED KINGDOM Eliminate Tobacco? cardiff, wales—The elimination of tobacco use in Wales should be the goal of the country’s government in its new tobacco control plan, say a group of leading charities.

Three leading charities have joined forces to urge Welsh Government to set a target of eradicating smoking in Wales, according to the South Wales Argus. They are calling on Welsh Gov-

ernment to set a target similar to that set in England, where there are plans to reduce smoking to five per cent of the population by 2030, and Scotland, where the goal is to become a tobacco-free nation by 2034.

So far smoking in Wales is down to 17 percent, close to the current target of 16 per cent of the population by 2020.

ASH Wales chief executive Suzanne Cass, said recently, “We are working towards a smoke-free Wales as this is the only way to address the devastating health inequalities caused by this terrible addiction.”

BAT Named Diversity Leader

by Financial Times london—British American Tobacco (BAT) has been named as a “Diversity Leader” by the Financial Times in its inaugural Diversity Leaders report. The report, which lists the top 700 companies across 10 European countries, recognizes companies that have achieved a diverse and inclusive work force.

UNITED STATES No More Menthol in Convenience Stores boston—Tobacco products flavored with mint and menthol can no longer

SWEDEN ZYN Gives Swedish Match a Boost stockholm—Sales of the new tobacco-free nicotine pouch ZYN in the United States drove a bigger-than-expected rise in Swedish Match’s third-quarter operating profit.

Operating profit rose to 1.59 billion Swedish crowns (US $164.61 million) from 1.31 billion a year earlier. Analysts were said to have forecast on average a profit of 1.44 billion.

At this time, ZYN is sold only in the U.S., and they are doing well.

“Shipments of ZYN in the US amounted to 31 million cans during the first nine months [of 2019], up from 8.5 million cans in the prior year,” the company said. The product is available in more than 60,000 stores in the country.

10 TOBACCO INTERNATIONAL DECEMBER 2019

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TI DIGEST

PMI Spearheads New Way to Print Digitally on Cardboard Pack When you launch a new category, you have to drive adoption. Staff Report based on material from PMI rinting digitally on cardboard packs at scale—and at a high quality—was a puzzle for Philip Mprrios International that until now hadn’t been solved.

“It takes us up to four months to put a new product into the marketplace, and the printed packaging material accounts for the longest lead times,” said Andreia Fontes, PMI’s Director of Printing & Converting.

“With the introduction of our smokefree products, our need for agility, f lexibility and speed is more critical than ever. That’s why we set ourselves the goal to reduce the time to market from four months to seven days.”

Tony Snyder, PMI’s VP Product Portfolio Management & Deployment, added,

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“When you’re launching a new category, you have to do everything possible to drive adoption. If someone has just switched, consistent availability is critical.”

A radical decision PMI engaged with printing suppliers and machine manufacturers but did not find what it was looking for. There was no readily available commercial solution for the quality and scale required. So despite not being in the printing industry, PMI made the radical decision to develop its own in-house printing and converting solution.

PMI’s Printing Technologies team partnered with one of the world’s leading digital printing suppliers and co-developed a hybrid digital printing and

12 TOBACCO INTERNATIONAL DECEMBER 2019

converting solution at PMI’s Innovation Development Center in Neuchâtel, Switzerland. The new technology allows PMI to print digitally on folding cartons at scale, with the flexibility to add on traditional printing colors and finishes when needed.

“We’re at the point that even our suppliers recognize the expertise we’ve built internally.”

— Andreia Fontes, Director of Printing and Converting, PMI

After two years of development and testing, the team was thrilled with the results. In 2019, this achievement gave PMI the confidence to install two digital hybrid printing presses in its Romanian facility, which produces smoke-free products.

“PMI’s digital printing solution allows us to produce—in real time—the exact quantities of printed materials we need to fulfill consumer demand, with no set up cost or lead-in time,” says Fontes. “It offers us opportunities and possibilities beyond traditional printing.”

A milestone for the printing industry This was not only a milestone for PMI as a company, but for the printing industry as a whole.

For PMI, the decision to challenge what was thought impossible in digital printing has been met with admiration by those in both the printing and consumer goods industries.

“We’re at the point that even our suppliers recognize the expertise we’ve built internally,” Snyder says. “The pride of knowing that we’re pushing the boundaries of technology, and that we’re now regarded by people in the printing industry as pioneers in this field, is very powerful and rewarding for everyone who’s been working on this project for the last two years.”

This drive to shorten the printed packaging materials lead times for PMI’s smoke-free products is a vital catalyst in helping the company reach its smoke-free future vision in the shortest time possible.

The team is now aiming to ramp-up capacity and use this new technology to print an increasing portion of its smokefree products portfolio. So can PMI one day have digital printing capabilities installed in every factory? “Absolutely,” says Fontes. “That’s our vision, and I’m confident we will make it a reality.”

be sold in convenience stores along in this major American city.

But sa le s w i l l be a l lowed i n adult-only, 21-plus specialty retailers whose clientele is restricted to those over 21, said NBC Boston.

The industry countered that this move would set the stage for sales on the black market.

Another issue: countless people in the city use menthol cigarettes, and there’s fear they’ll turn to a black market because it’ll just be too difficult to find.

“We already know that criminals and gangs exist in this space,” said Jonathan Shaer, executive director of the New England Convenience Store and Energy Marketers Association. “I guarantee that they are applauding the Boston Public Health Commission’s decision.”

ZIMBABWE Will African Farmers Embrace Hemp Cultivation? harare—Could the various types of hemp take up some of the unused resources in Zimbabwe left by the decline of tobacco?

This is the hy pothesis presented in the new book Hemp Cultivation in Africa: Zimbabwe—A Case Study (2019) from New Frontier Data.

“Agro-based Sub-Saharan nations, many of which, like Zimbabwe, primarily produce tobacco for Chinese consumption, are facing declining demand, which could cripple their economies within the next decade.

Leaderships such as that of Zimbabwe are smart to be thinking ahead and exploring other crops presenting minimum transition cost and rising demand,” noted Giadha Aguirre de Carcer, New Frontier Data Founder and CEO. “Hemp cu lt ivat ion, especia l ly given the explosive demand arising from neighboring European nations,

presents a unique opportunit y to Zimbabwe and other African nations well positioned to meet such demand cheaper, and possibly faster, than current suppliers from Canada and Latin America.”

NAMES IN THE NEWS S ar ah S an t o s w i l l ta ke over i n January as the executive vice president a nd president of t he Nor t h American online and retail division of the Scandinavian Tobacco Group (STG). She has served as senior v i c e pr e s i d e nt of STG’s North American online business. She Santos began with STG in 2003 as a marketing consultant for online retailer Cigars International (owned by STG), and joined full-time in 2008. She replaces Craig Reynolds, who will support the transition until May 31, when he will officially retire.

He is expected to stay on as a consultant until December 2020 or later.

Thérèse Esperdy, currently Senior Independent Director of Imperial Brands, will succeed Mark Williamson as Chairman in January. The company a n nou nc e d in February that Mark Williamson will step down as Chairman in anticipation of new U K C or por ate Governance Esperdy C o de re qu i re ments. Esperdy has significant investment banking experience, having held senior roles at JP Morgan. She began her banking career at Lehman Brothers and retired from JP Morgan in 2015. She joined the Imperial Board in July 2016.

DECEMBER 2019 TOBACCO INTERNATIONAL

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SUPPLIER FOCUS

14 TOBACCO INTERNATIONAL DECEMBER 2019

How Modular Design Makes More Printing Options Available One company’s approach to printing and converting tobacco packaging. Staff Report he packaging of major tobacco brands is increasingly being produced on DCM ATN’s ATENA rotogravure printing machines.

Tobacco International met recently with Pierre-Eric Dessus, DCM ATN after-sales manager for their ATENA customers, to find out how the new technology is fitting in.

“The ATN side of our business is focused on cartonboard converting machines for the tobacco packaging industry,” he explained. “The first ATENA machine was produced back in 1988. Since then we have sold almost 100 ATENA machines, and the past 10 years is the decade where we have sold the most.”

At TI’s request, Dessus gave us an overview of the machine.

“The e-ATENA’s modular design allows for the integration of a range of different options for printing,” he said. “Such a range is increasingly required by many tobacco brand owners—options include inverted UV curing, special coatings such as tactile and soft touch varnishes, hot foil stamping and hologram stamping.”

The inline converting options are also modular, so the company can provide its customer with the line that best meets its requirements.

“For example, for inline converting, embossing, creasing and cutting, the line is most commonly used with our rotary die cutter. The universal rotary sheeting tool can be used on it for producing variable sized sheets.”

Another possibility is an inline flatbed die-cutter if the customer needs

T

to produce a large number of different blank shapes, he said.

An electronic line shaft machine using the latest B&R technology, the e-ATENA is electronically controlled with independent motorization and drives on each unit, ensuring the highest quality printing with extremely low levels of waste.

“The register accuracy, already within +/-0.1mm on the older technology mechanical machines, is now even so much more accurate and consistent on the e-ATENA,” said Dessus. “Job setup is much faster. Adjustments can be made whilst the machine is running.

In addition, the maintenance requirements are much lower than the older technology mechanical line. The e-ATENA is extremely easy to run and very user-friendly, at the same time meeting the strict quality specifications required by different major brand owners.”

So who are DCM ATN? ATN is a French company established in 1988, and where I have been working for over 25 years. In 2001, ATN joined DCM, which is also a French company, founded in 1953 and focused on high quality equipment for packaging converters. “DCM machines include slitter-rewinders, coaters and laminators, inspection and doctoring rewinders, shrink sleeve converting machines as well as rotogravure printing machines for paper and flexible materials.”

Two ranges of machines enable DCM ATN to be active in two complementary market segments:

DECEMBER 2019 TOBACCO INTERNATIONAL

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SUPPLIER FOCUS

e-ATENA units and printing trolleys.

• Paper and cartonboard converting machines for the tobacco packaging industry.

• Flexible material converting machines (particularly for food packaging).

All DCM ATN machines are fully designed, manufactured and assembled in France.

launched in 2020: a new inline rejection system that ensures automatic inline quality control, working for both short-grain and long-grain blanks and running at very high speeds.

“Our Universal Rotary Sheeter for producing sheets of variable width and length has also been optimized and is

“Our customers need to produce high-quality packaging with high efficiency, and we do all we can to make it easy and reliable for them.”

— Pierre-Eric Dessus, DCM ATN’s ATENA After-sales Manager New for tobacco packaging convertors The e-ATENA is constantly evolving, with a dedicated R&D department in France. One of the latest developments, to be officially launched in early 2020, is a new transfer rejector unit that allows very high-speed production even for more complicated blanks.

This can also be coupled with another new development, also to be officially

today widely used throughout the world,” said Dessus. “It allows our customers to produce sheets for offline converting, for example for low volume blank shapes where rotary die tooling is not justified.

And we have a High Pile delivery, which is an option to be used together with the Universal Rotary Sheeter.”

“Our Rotofoil hot foil stamping and hologram stamping unit has also

16 TOBACCO INTERNATIONAL DECEMBER 2019

seen some optimization, ensuring efficient high quality inline hot foil and hologram application,” he said. “That is to be increasingly demanded by many brand owners.

“The efficiency of the ink tanks and inking system has been optimized to run with maximum inking and with reduced quantity of inks. The efficiency of the driers’ hot-air recirculation functionality likewise has been enhanced in order to minimize energy consumption.”

In addition, many improvements have been undertaken to conform to European and international safety standards and with high level automation.”

DCM ATN has also worked together with another leading European company and can today offer inline flat-bed die-cutting as an alternative to rotary die cutting.

Service level for tobacco packaging converters Providing a very high level of service is important for DCM ATN. This includes operator training, regular

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Above: High pile delivery for the delivery of sheets.

Below: Hot foil application unit (Rotofoil).

maintenance, machine re-ca librations, wear-and-tear part replacements, machinery refurbishing and upgrades. “Our customers need to produce high-quality packaging with high efficiency, and we do all we can to make it easy and reliable for them,” said Dessus.

In 2019, DCM ATN increased its local service and technical assistance

to customers, with French service engineers from ATN now permanently based in Indonesia as well as in U.S. and in Europe, ensuring that customers in these regions can receive fast response and quick service.

DCM ATN now provides highly skilled local technical service across three continents to support customers operating e-ATENA lines. Furthermore, a dedicated service hotline based in France for the ATN machines has been boosted, with additional engineers, reinforcing Dessus’ after-sales team on the ATN hotline and ensuring customer service all through the year.

Dessus adds, “Before shipment to the customer, each machine is fully tested in France, either at the DCM factory in Nanterre, just west of Paris, or the ATN factory in Olivet, which is an hour south of Paris,” said Dessus. “For example, newly sold e-ATENA lines are always subjected to meticulous test runs in the ATN factory before they are subsequently installed at the customer’s facility.”

The customer attends these tests, printing and cutting customer’s test jobs, and only once the customer approves the

18 TOBACCO INTERNATIONAL DECEMBER 2019

machine will it be disassembled and delivered to the customer’s facility.

“And for DCM ATN, it is standard routine to always include comprehensive training and production support for operators and maintenance staff with any installation,” he added.

Soft pack and tipping paper “The e-ATENA machine is also used to produce the tipping paper, soft pack blanks and inner frame” says Dessus.

“When running with paper, customers either run with a rewinder or with our Label Cutter, which cuts vertically stacked labels at the end of the line.

Many customers are producing soft pack for example this way, and other products such as beer labels and stamps are also produced on such lines.”

Tobacco packaging converters DCM ATN’s diverse assortment of complementary equipment, including slitter rewinders, inspection and doctoring rewinders, coaters, laminators, sheeters and shrink sleeve converting machines, are predominately sold to customers converting for the food packaging industry.

SUPPLIER FOCUS e-ATENA RDC assemled in ATN’s factory.

“However, there are also many tobacco packaging converters using these machines, notably high-quality slitter-rewinders and inspection and doctoring rewinders, for which DCM is highly regarded across the world,” he said. “Tobacco packaging convertors commonly use these offline machines from DCM ATN for producing the tipping paper, soft pack and inner frame.”

er, and the Tigre, which is an automatic double-turret slitter rewinder. Both are used where maximizing the productivity is important for the customer.”

Following the slitting process, many customers have also DCM’s Babycat inspection and doctoring rewinder, which doctors the reels and at the same time make an inspection.

The inspection may be visual, but is

“The tobacco packaging converting market continues to be our key focus and we expect to continue to sell several ATENA machines per year over the next few years.” — Pierre-Eric Dessus “The Panthere and Puma are slitter-rew inders t hat a re common ly used by our tobacco packaging converting customers” Dessus says. “The Puma is really dedicated for paper and board; the Panthere is more versatile for also using other materials such as foils and films.”

There is also the Leopard, which is an automatic single turret slitter rewind-

nowadays done more and more with a high resolution 100% inspection camera that detects any print defect detected and automatically rewinds and stops in the position of the detected print defect.

The operator can remove this from the reel if required.

“The inspection system may be made either on our Babycat machine or it can be made on the printing machine, with

20 TOBACCO INTERNATIONAL DECEMBER 2019

the position of print defects recorded and passed on to the Babycat machine,” said Dessus. “We have sold over 30 Babycat machines in 2019, many sold for tobacco packaging converting applications such as tipping paper and soft pack.

The future?

“The tobacco packaging converting market continues to be our key focus and we expect to continue to sell several ATENA machines per year over the next few years,” Dessus tells us. “We have our dedicated R&D team focused on the ATENA machine, continuously improving it further.

“And because we have many ATENA lines installed around the world, it is important to provide strong support to our customers.”

The company has recruited additional people this year to reinforce our ATENA customers.

“And it is important to note that our company’s business is very healthy, in a strong position and reporting positive results.”

Photo: photosvit/Bigstock

GERMANY

Germany to Tighten Pressure on Domestic Tobacco Business E-cigarettes may be the first target.

By Eugene Gerden, TI Russia Correspondent he government of Germany, the EUâ&#x20AC;&#x2122;s largest economy, is considering new legislation designed to contribute to better regulation of the domestic tobacco industry and more actively contend with contraband supplies of tobacco in the local market, according to recent statements, made some senior officials of the German government and industry analysts in the field of tobacco business.

Something along these lines is acutely needed, due to the influx of various innovative tobacco products to the German market in recent years, for which turnover is currently not subject to any regulation by the local authorities.

T

According to a recent report of the German Cigarette Association, a public association which unites some of the leading tobacco producers in Germany, the demand for traditional cigarettes in the country has significantly declined, primarily in favor of their electronic alternatives.

In 2002 the daily consumption of cigarettes in Germany was in the range of 398-410 million. This figure has dropped below the 200 million mark and continues to decline.

Significant increase One of the major reasons for this was a significant increase of the demand for

22 TOBACCO INTERNATIONAL DECEMBER 2019

e-cigarettes and other alternatives for traditional cigarettes among the local customers. Another reason has been the growth in prices for traditional tobacco and products in the German market.

The decline of the demand for traditional cigarettes among the local customers became also a consequence of the anti-tobacco policy, which has been implemented by German government in recent years and which resulted in making smoking an unpopular occupation among German youth and even older generations.

The German Federal Ministry of Health, according to which, the number of smoking young people in the country, aged 12 to 17 years, fell from 28 percent at the beginning of 2000s to only 8 percent in 2018, which makes a historical minimum for the country.

In the meantime, in contrast to traditional cigarettes, the demand for their electronic alternatives in the country is steadily growing. According to recent reports of some leading German media,

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Established in 1886, Tobacco International has gained the reputation as the No.1 trade journal serving the tobacco industry’s manufacturing, growing, equipment and related fields.

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GERMANY

last year the annual sales of e-cigarettes in the country amounted to almost EUR 650 million (US$717 million), while analysts expect these figures may reach EUR 700 million already in 2020.

The ever-growing demand for e-cigarettes in Germany could be partially explained by price: E-cigarettes cost significantly lower than traditional cigarettes, which currently reach EUR 30 (US$33) per pack in German retail.

business and various health activists have already called on the national government to design additional legislation that should ensure better regulation of e-cigarettes and other similar products on the German market.

According to them, the current German legislation in the field of tobacco and its alternatives remains incomplete.

It is significantly weaker than corresponding legislation in other developed

The ever-growing demand for e-cigarettes in Germany could be partially explained by price: E-cigarettes cost significantly lower than traditional cigarettes, which currently reach EUR30 (US$33) per pack in German retail.

Taxes light on vapes The main reason for the low e-cigarette price in Germany is the low current tax burden placed on them. At present, e-cigarettes are only subject to value-added-tax. Predictably, that has contributed to growth of demand for them and their uncontrolled distribution throughout the country.

So far, some of German independent analysts in the field of tobacco

nations, such as the UK, the US and Australia. This situation leads to the uncontrolled turnover of various new products, such as IQOS and Juul.

The lack of tobacco regulations in the country may be also related with the existing strong tobacco lobby in Germany, which prevents a further increase of taxes and the adoption of other measures for the reduction of the number of smoking people in the country.

24 TOBACCO INTERNATIONAL DECEMBER 2019

In the meantime, the German government is aware of the existing problems and is considering ways for their solution.

According to an official state spokesman, in addition to the design of new tobacco legislation, particular attention will be also paid to the development of measures to stop large volumes of tobacco contraband supplies to Germany, which have significantly increased in recent years.

The countryâ&#x20AC;&#x2122;s annual losses from the supply of illegal cigarettes are estimated US$3 billion in tax. They continue to grow.

According to some German senior state officials, a bulk of such supplies came from the stocks of certain tobacco majors operating in the country, who may be involved in conducting schemes to supply of tobacco products and cigarettes to the German contraband market.

The organization of such schemes allows producers to gain market share and to prevent from further increase of taxes for the tobacco industry.

Better coordination The German government, from its side, believes that the establishment of better coordination between police and customs should create conditions for a better fight with tobacco contraband.

The government has also plans to design a new effective system of tracking the cigarettes, supplied to the German market.

Finally, the government plans to toughen a control for tobacco waste in the country. Svenja Schulze, Minister of the Environment, Nature Conservation and Nuclear Safety, said recently that those who produce tobacco filters (and other disposable plastic products) should fund the clean-up of the waste it produces. If successful, that may lead to additional costs for German tobacco product producers.

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UNITED KINGDOM

The World’s Most Famous Former Smoker On a royal tobacco habit, and the politics of shedding it.

Commentary by Bob Crew, TI London Correspondent he conventional wisdom in London is that young Prince Harry would not end his smoking habit because of the urging of his father Prince Charles, or his grandmother, the Queen of England, but only his new bride Meghan Markel (the former American TV and film actress from the United States) could get him to give up tobacco.

This has been widely reported in the British press and is, therefore, an open secret that does not impress an-

T

ti-smoking activists and health campaigners or indeed the World Health Organization (WHO).

Given that it is not good for the image of the British royal family to get on the wrong side of the WHO or its own government’s Ministr y of Health—well-known for its anti-smoking agenda— one can well imagine the negative public relations implications of Harry’s smoking for the House of Windsor, even if it is all in the past.

26 TOBACCO INTERNATIONAL DECEMBER 2019

Not the first But then again, there are Harry fans who take the view that if he still needs the occasional cigarette, then leave the lad alone. He is not the first British royal to have smoked a cigarette in public, or the first British soldier either.

Reportedly, Harry had been defiantly smoking way before this story has recently hit the headlines, at school, in his teens and usually when there have been press cameras present, in the days before he became a role model for both young and old in the British public as a few million seem to do. Just as a great many million more regard the British royal family as a role model worldwide!

By all accounts, Harry’s elder brother, Prince William, is not impressed with Harry’s conduct either and has told him so, and now that Harry’s wife Meghan has fallen out with William’s wife Kate—because these two are reportedly jealous of each other and trying to upstage one another much if not most of the time—we (phew!) that Harry can do with another cigarette!!

And perhaps Meghan and Kate also!

Whilst Harry is supposed to be a role model for young people in the UK—at least those that take their royals seriously (not all do, maybe not even most!)—one can well imagine the conventional pressures he is under and has been under including negative reinforcement from his wife Meghan—all calculated to drive the poor chap to smoking again.

Interestingly there are no complaints from the World Health Organization (WHO) or health activists and campaigners in the UK who are evidently looking the other way. There are no anti-smoking activists at the gates of Above: United Kingdom’s Prince Harry speaks during the opening ceremonies of the the 2017 Invictus Games in Toronto, Canada Sept.

23, 2017. DoD photo by EJ Hersom. CC BY 2.0

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UNITED KINGDOM

Buckingham Palace with placards urging Harry not to smoke!

There are British laws that have stopped smoking in the British parliament as well as ones stopping smokers from having a puff in parks, gardens, restaurants and bars. Smoking is also not allowed in the grounds of Buckingham Palace and the lovely garden there, one can well understand why it is that a British royal smoking is frowned upon.

When he was at Britain’s poshest and most frightfully expensive school—Eton College, near Windsor Castle (the royal family’s house in the country) that has educated more British Prime Ministers than any other school—did Harry get his cigarettes from the local village shop or somewhere else? Not the school’s tuck shop presumably!

All things considered, there really is

There are a number of notable Brits in high places who clearly do not object to smoking as most others do—Conservative Prime Minister Boris Johnson, Nigel Farage (who may or may not win the next election), and now Prince Harry, son of the next intended King of England (Prince Charles) and grandson of the Queen!

No comment in the media Because there has been no television or other media interview with Harry about his former smoking habit, nobody has any idea (except for those closest to him whose lips are predictably sealed) what his favorite cigarette brands were and/ or are and which shop or other person has supplied them to him.

no smoke without a fire on this occasion, Harry has been puffing away like a good-un, and it stands to reason that it of course remains to be seen if he really has given the habit up.

Whether we shall learn which were his favorite brands also remains to be seen through all the huff and puff that cloud this issue, and it is doubtful that

28 TOBACCO INTERNATIONAL DECEMBER 2019

in the long history of smoking on planet earth there ever been such a big anti-smoking fuss as we see here.

As we have chronicled in recent editions of this magazine, there are a number of notable Brits in high places who clearly do not object to smoking as most others do—Conservative Prime Minister Boris Johnson, Nigel Farage (who may or may not win the next election), and now Prince Harry, son of the next intended King of England (Prince Charles) and grandson of the Queen!

A good laugh It is all a really good festive laugh for smokers in Britain as Christmas and the New Year approaches this month and next but not for the trusty old World Health Organization in Switzerland.

Or those anti-smoking activists and campaigners at home in the UK, who have to keep smiling as best they can whenever they think of good old Prince Harry and try not to grind their teeth about the tremendous image boost that he has given to smoking, and not least the under-age young who of course will claim that if it has been all right for Harry, it’s certainly all right for them!

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UNITED KINGDOM Have tobacco companies in the UK undermined plain packaging laws by introducing gimmicks ensuring their cigarettes stand out from rival products without breaching regulations?

islation has said government ministers should “consider tightening up the law to eliminate loopholes” that are detailed in the report that is researched and written by academics at the University of Bath, near Bristol in the West of England.

Tobacco companies “initially ramped up production before a oneyear ‘sell-through’ period, during which retailers were allowed to keep selling their remaining branded pack,” said the report. This had the effect of keeping the older packs on sale for as long as possible. Brand exposure was extended in the run-up to May 2017, when they could no longer be sold.

When Compliance is Portrayed as Non-compliance Tobacco companies take a pasting after observing British plain-packaging laws.

By Bob Crew and Christopher Bickers nce again, tobacco companies observing regulations is taking heat from those motivated by the anti-tobacco agenda.

Cigarette manufacturers in the UK are accused of undermining recent plain-packaging laws by introducing gimmicks that ensure their cigarettes stand out from rival products but do not breach regulations.

O

This is according to a report in the British Medical Journal’s BMJ Open publication which says that global tobacco companies in the UK have adopted “subtle marketing techniques” to replace the traditional cigarette branding, which has been banned in the UK since 2016.

One of the British Members of Parliament who has pioneered the leg-

“Plain packaging inappropriately treats adult smokers as unable to make their own decisions.

And we don’t agree that banning cigarettes makes sense for smokers or for society at large.”

—Philip Morris International 30 TOBACCO INTERNATIONAL DECEMBER 2019

In business of selling products This was good and clever thinking within the law by the tobacco companies, of course, given that they are in the business of selling their products legally.

The report also claims that tobacco companies came up with “innovative ways to make plain-packaged products distinctive.” It pointed to Philip Morris International for “redesigning its premium Marlboro range, adding beveled edges and a new ‘pro-seal’ closing mechanism to packets that made packs“ appear “more premium and recognizable compared to other brands.”

“Given that the tobacco industry is attempting to circumvent standardized packaging legislation, other cou nt r ies consider i ng t he pol ic y should consider how to make regulations as comprehensive as possible to prevent the exploitation of continued marketing opportunities,” the report has concluded.

It also argued that tobacco companies have also responded to a UK-ban on taste descriptions—such as “menthol”

or “smooth”—by replacing them with names based on color! The anti-tobacco researchers reckon that banning terms such as ‘smooth’ and ‘light’ has been intended to “dispel the myth that certain types of cigarette are less dangerous.”

Color codes, misperceptions By “teaching customers color codes linked to the old descriptions, [these] misperceptions are likely to endure.”

The introduction of “flavor capsules previously reserved for the most expensive cigarettes into less costly products” also attracted the opposition of the researchers of Bath.

The belief is that “flavored cigarettes were/are more likely to appeal to less regular smokers and young people,” according to the report.

They’re now turning to new flavored products—similar to vap-

ing—which the university’s research shows are proving to appeal more to non-smokers.

“This flies in the face of the legislation [aimed at] a reduction of the number of smokers, and it is clear that we need to clamp down on tobacco companies who choose to circumvent the rules,” said one member of Parliament.

The report’s lead author, Ka ren Eva ne-Reeves, adds that the tobacco industry in the UK is “engaged in activities that have undermined and continue to undermine the legislation.

“Based on the number of innovations we found in this study, we would encourage all governments considering implementing plain packaging legislation to consider how tobacco companies have adapted to the legislation in other countries and where possible, close any remaining loopholes.”

Manufacturer responds to plain packaging with ‘forceful objection’ Philip Morris International, which owns Marlboro, has not responded to media requests for comment. But in a position paper on its website, it has “forcefully” objected to regulations that ‘remove branding from our cigarette packages and that force consumers to choose among products that look nearly identical.’

PMI believes “that plain packaging inappropriately treats adult smokers as unable to make their own decisions.

And we don’t agree that banning cigarettes makes sense for smokers or for society at large.”

Final note: The Guardian daily newspaper in London has previously revealed that Philip Morris produced Marlboro-branded metal tins in the run-up to the plain packaging legislation. This move has been criticized as a ploy to prolong the visibility of Marlboro’s brand in the UK.

PLAIN PACKAGING: MANUFACTURER OPINION

A Common-Sense Approach The well-known risks of smoking have led regulators to impose more restrictions and higher excise taxes on cigarettes than apply to any other consumer product— while allowing cigarettes to remain available to adults.

There’s absolutely no doubt that tobacco products should be subject to strict rules and enforcement. The record shows that we respect government’s authority— and leadership role—in protecting public health.

At times, we have forcefully objected to regulations, such as those that remove branding from our cigarette packages and that force consumers to choose among products that look nearly identical. We still believe that plain packaging inappropriately treats adult smokers as unable to make their own decisions. And we don’t agree that banning cigarettes makes sense for smokers or for society at large.

With comprehensive requirements in place to control nearly every aspect of the cigarette business, the ques-

tion becomes: what’s the plan to address the needs of more than one billion people who still smoke?

The answer, in our view, is innovation—in products and in policies. As we work to design a smoke-free future, our priorities are changing. Technology that we and others have developed makes it possible to shift the tobacco and nicotine market towards a future in which cigarettes are replaced by less harmful, yet satisfying, smoke-free alternatives. In this context, sensible, risk-based regulation of smoke-free products, combined with further restrictions on cigarettes, can help address the harm caused by smoking more effectively—and faster—than plain packaging and other traditional regulatory measures.

To be clear, regulations should continue to dissuade people from starting to smoke and encourage cessation.

But it’s equally clear that millions of men and women will continue to smoke, and they should have the opportunity to switch to better alternatives.

—Philip Morris International

DECEMBER 2019 TOBACCO INTERNATIONAL

31

SUPPLIER UPDATE Left: Among the major fruit-based product categories that FruitSmart supplies are juices, purees, and concentrates. Photo: FruitSmart

Universal’s Pursuit of an Agri-Products Platform The acquisition of a fruit and vegetable processor and supplier provides new growth opportunity for leading tobacco merchant Universal Corporation. Staff Report niversal Corporation has entered into a definitive agreement to acquire FruitSmart, an independent specialty fruit and vegetable ingredient processor headquartered in Grandview, Washington and serving global markets.

A company statement said on November 20 that FruitSmart, founded in 1982, supplies a broad set of juices, concentrates, blends, purees, fibers, seed and seed powders and other value-added products to food, beverage and flavor companies throughout the United States. It also has an international market through value-added processing of various fruit and vegetable products.

FruitSmart processes apples, grapes, blueberries, raspberries, cherries, blackberries, pears, cranberries and strawberries as well as other fruits and vegetables.

The business is headquartered

U

in Washington state’s Yakima Valley, where it has approximately 200 employees and two manufacturing facilities.

Based in Grandview, Washington, FruitSmart takes the rich agriculture the region has to offer and turns it into a wide variety of premium quality products, said a report in U.S. Business Executive.

Fueled by irrigation “Gra ndv ie w i s i n sout h c ent ra l Washi ng ton, which is ac tua l ly a semi-arid climate in comparison to

the western portion of the state,” explains Jim Gauley, co-owner and chief financial officer of FruitSmart in USBE. “The Cascade Mountains act as a moisture barrier, so the valley is fueled by irrigation water from the snowpack, but the rich volcanic soil and mild weather make for prime growing conditions.”

“Since outlining our capital allocation strategy in May 2018, we have been identifying a pipeline of strategic opportunities in adjacent markets around our core strengths: leveraging our highly localized rural infrastructure to source and process high-value, non-commodity, semi-perishable varietals from a large, reliant grower base for customers who demand fully traceable and compliant inputs,” said George C. Freeman III, chairman, president and chief executive officer of Universal Corporation.

“Given the worldwide addressable market opportunity for fruit and vegetable sourcing and processing, and the similar supplier dynamics and scale benefits to our existing business, this transaction represents a foundational step in building out a broader agri-products services platform and has the potential to be a new source of growth to drive future value creation for our shareholders,” Freeman said.

With a healthy balance sheet and a demonstrated ability to generate free

“Since outlining our capital allocation strategy in May 2018, we have been identifying a pipeline of strategic opportunities in adjacent markets around our core strengths…”

32 TOBACCO INTERNATIONAL DECEMBER 2019

—George C. Freeman III, Chairman, President and Chief Executive Officer of Universal Corporation.

84th EDITION

2019 BUYERS’ GUIDE & GLOBAL DIRECTORY

ION EDIT

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Leaf Dealers, Growers & Processors 2/1/18

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Tobacco International

Buyers’Guide

& Global Directory

Enhance your listing by advertising in the 2020 Edition Tobacco International Buyers’ Guide and Global Directory is an essential reference tool for the tobacco industry and supplier companies all over the world. As an advertiser, you are guaranteed: • Year-Long Exposure • Worldwide Distribution

Albania – Bangladesh

Section 1: Global Directory Associations, Distribution/Importers & Exporters, Product Manufacturers, Leaf Dealers & Processors, Suppliers

ALBANIA Cigarette Manufacturer British American Tobacco Albania Tobacco and Cigarette Factory Stamles Product Manufacturer Tobacco and Cigarette Factory Stamles

ALGERIA Cigarette Manufacturer British American Tobacco Algeria

ANDORRA Cigar Manufacturer Franc Port, SA Cigarette Manufacturer Franc Port, SA JT International Tabandor SA Product Manufacturer Franc Port, SA Industries Montanya SA JT International Tabandor SA Smoking Tobacco Industries Montanya SA

ANGOLA

Product Manufacturer Massalin Particulares SA Philip Morris Nobleza Piccardo SAIC y F Smoking Tobacco Massalin Particulares SA Philip Morris Nobleza Piccardo SAIC y F

ARMENIA Cigarette Manufacturer British American Tobacco Armenia Grand Tobacco Co. Ltd SPS Cigaronne Co. Ltd Virginia Ltd Distribution/Product, Importer & Exporter Armenian Greek JV Masis Tobacco MV Co. Ltd Masis Tobacco Ltd Growing & Fermentation Masis Tobacco Ltd Leaf Dealer Armenian Greek JV Masis Tobacco MV Co. Ltd Masis Tobacco Ltd Product Manufacturer Armtabak d S C Grand Tobacco Co. Ltd SPS Cigaronne Co Ltd Virginia Ltd Smoking Tobacco Armtabak d S C

Consulting Knapp AG

XXXXXXX — XXXXXXX

Acetate Tow — Blending Machines XXXXXXX & Mixing — Plants XXXXXXX —XXXXXXX XXXXXXX

A

A complete directory to the world of allied products and services utilized by tobacco product manufacturers, leaf processors, and tobacco growers in the course of their business operations, organized alphabetically by product or service. Refer to Section 3 for complete contact information for the desired company. Refer to the Advertiser Index on page 144 to locate a supplier’s advertisement.

Product Manufacturer Knapp AG Research & Development Knapp AG Trierenberg Holding AG Supplier Altesse Berndorf Band GmbH Delfort Group AG Dr. Franz Fuerstein GmbH Folial GmbH Knapp AG Kukla Waagenfabrik GmbH & Co. KG Mayr-Melnhof Karton Mayr-Melnhof Packaging International/ International Tobacco Packaging MWV/A MeadWestvaco Resource Osterreichische Zigarettenfilter GmbH Poettinger Entsorgungstechnik GmbH & Co. KG Poettinger Water Disposal Technology S & S Vertriebs - GmbH Schiff + Stern KG Trierenberg Holding AG

AZERBAIJAN

AAF international americanair filter, P.O. Box 35690, Louisville, Kentucky 40232-5690, United States. Tel: +1 502 637 0011, Toll free +1 888 223 2003. Fax: +1 502 637 0321, Toll free +1 888 223 6500. Email: info@aafintl.com.

Web: www.aafintl.com. Business Type: Suppliers. Products: Dust Collectors, Electronic Cigarettes, Electronic Cigarettes.

Abal Hermanos SA, Paraguay 1780, Montevideo 11800, Uruguay. Tel: +598 2 924 0915. Fax: +598 2 924 1732. Web: www.pmintl.com. Business Type: Cigarette Manufacturers, Product Manufacturers.

Leaf Dealer Aucana Marketing GmbH Logistic Equipment Knapp AG

Section 3: Contact Information

Section 2: Supplies & Services, Machinery & Equipment

Distribution/Product, Importer & Exporter Top Brands Weswaldi International

Cigar Manufacturer Knapp AG ETA (Empresa dos Tabacos de Angola), SARL Supplier Armenian Greek JV Masis Tobacco MV Co. Ltd Cigarette Manufacturer Trierenberg Holding AG Wholesaler/Distribution British American Tobacco Angola Knapp AG AUSTRALIA rter ETA (Empresa dos Tabacos de Angola), SARL Association AZERBAIJAN Product Manufacturer Supplier Tobacco Cooperative of Victoria . Ltd ETA (Empresa dos Tabacos de Angola), SARL Cigarette Manufacturer Cigar Manufacturer British American Tobacco Azerbaijan Altesse Imperial Tobacco Australia Ltd ARGENTINA BAHAMAS Cigarette Manufacturer Association Berndorf BandBritish GmbH American Tobacco Australia Camera de Tabaco Cigar Manufacturer Philip Morris International (Australia) Ltd Graycliff Cigar Co. Cigarette Manufacturer Delfort Group AG Distribution/Product, Importer & Exporter British American Tobacco Argentina Product Manufacturer Swedish Match Australia Goloteca Manufactura Argentina de Tabacos Graycliff Cigar Co. Dr. Franz Fuerstein GmbH Massalin Particulares SA Logistic Equipment Philip Morris Conveying (Aust) Pty. Ltd BANGLADESH Nobleza Piccardo SAICFolial yF GmbH Industrial Product Manufacturer Cigarette Manufacturer Leaf Dealer American Tobacco Australia Abul Khair Leaf Tobacco Co. Ltd AG British Alliance One ArgentinaKnapp SA Philip Morris International (Australia) Ltd Bangladesh Tobacco Industries Ltd . Ltd Bonpland Leaf SA (BLASA) British American Tobacco Bangladesh Supplier Coop. de Salta B.A.T. Co. Ltd Kukla Waagenfabrik GmbH & Co. KGHusna Anzpac Services (Australia) Pty. Ltd Cooperativa de Tabacalera de Tucuman Ltda Tobacco Pvt. Ltd FlexLink Systems Pt. Ltd Cooperativa de Tabacaleros de Corrientes Ltda Nasir Leaf Tobacco Industries, Ltd Industrial Conveying (Aust) Pty. Ltd Mayr-Melnhof Karton Cooperativa de Tabacaleros de Jujuy Ltda Innovia Films (Asia-Pacific) Pty. Ltd Distribution/Product, Importer & Exporter Cooperativa Tabacalera de Misiones Ltda Kamra International Pty. Ltd Abul Khair Leaf Tobacco Co. Ltd J. Felipe Ottaviano y Cia. SA Mayr-Melnhof Packaging International/ RothTech Pty. Ltd Nasir Leaf Tobacco Industries, Ltd Universal Leaf Tabacos SA Treofan Australia Pty. Ltd Leaf Dealer International Tobacco Packaging Abul Leaf Processer Khair Leaf Tobacco Co. Ltd Cooperativa de Tabacaleros de Jujuy Ltda AUSTRIA Bangladesh Leaf Tobacco Co. Ltd MWV/A MeadWestvaco Pipe Smoking Tobacco British American Tobacco Bangladesh Cigarette Manufacturer Resource Nobleza Piccardo SAIC y F B.A.T. Co. Ltd British American Tobacco Austria Osterreichische Zigarettenfilter GmbH Tobacco International Buyers’ Guide & Global Directory 2018 9 Advertisers appear in bold Poettinger Entsorgungstechnik GmbH & Co. KG Poettinger Water Disposal Technology S & S Vertriebs - GmbH Schiff + Stern KG Trierenberg Holding AG . Ltd Wholesaler/Distribution Knapp AG

Cigarette Manufacturer

• Multi-Platform Distribution • Digital Advertising

Acetate Tow see Filter Tow

Adhesive Applicators Fi-Tech, Inc. (United States) C.B. Kaymich & Co. Ltd. (United Kingdom) PAK-TEC, Inc. (United States) SPI Developments Ltd. (United Kingdom)

Vintero Corporation (United States)

Adhesives Baumer hhs GmbH (Germany) Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) FORBO-Swift Adhesives Ltd. (England) Forbo Swift Adhesives Ltd. (United Kingdom) Haynes Rubber & Supply Co., Lewis-Goetz (United States) H.B. Fuller Co. (United States) H.B. Fuller GmbH (Germany) Henkel & Cie AG (Switzerland) Henkel KG (Germany) Hitkari Trading Corporation (India) KneX Worldwide (United States) Mena Company for Adhesives Technology “Menatec” (Egypt) National Starch & Chemical GmbH (Germany) National Starch & Chemical Co. (United States) National Starch & Chemical Ltd. (United Kingdom) Pafra Systems Ltd. (United Kingdom) PAK-TEC, Inc. (United States) PJM Pujadas SA (Spain) Siag Chemicals Co. SAE (Egypt) STI Petofi Nyomda Kft. (Hungary) Titan Adhesives Co., Inc. (United States) Tuermerleim GmbH (Germany) Tutunski Kombinat A.D. Prilep - TKP (Macedonia) Upaco Adhesives Inc. (United States)

Acetate Tow see Filter Tow

Mechanical Transplanter (United States) Muller Vinosafe SAS (France) Opico (United States) Powell Manufacturing Co., Inc. (United States) Taylor Manufacturing, Inc. (United States)

Balers

Air Filters

Band Tobacco

Csonka Worldwide (United States) Hauni Maschinenbau AG (Germany) Renold, Inc. (United States) Tholander Ablufttechnik GmbH (Germany) Tornex Inc. (Japan) United Air Specialists, Inc. (United States) Up-To-Date Environmental Engineering AG (Switzerland)

Aluminum Foil BMJ (Indonesia) ColourPackaging Ltd. (Kenya) Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) KneX Worldwide (United States) Novelis Deutschland GmbH (Germany)

Aluminum Foil Paper/ Board Rotogravure Printing AL INVEST Bridlicna, AS (Czech Republic) Aluprint S. de R.L. de C.V. (Mexico) Big Beard Co., Ltd. (China) Big Beard Co. Ltd. (China) IBI Corp. (South Korea) Mudanjiang Hengfeng Paper Co., Ltd. (China) New Toyo Aluminum Paper Product Co. (Singapore) Novelis UK Ltd. (United Kingdom) Parkside Flexibles (Normanton) Ltd. (United Kingdom) PT Tunas Alfin (Indonesia) Symetal SA (Greece) Vaassen Flexible Packaging BV (Netherlands)

Apron Machinery

Adhesive Applicators

Agricultural Chemicals

Diamond Metal Screens Pvt. Ltd. (India) Evans-MacTavish-Agricraft, Inc. (United States) Godioli & Bellanti SpA (Italy)

Fi-Tech, Inc. (United States) Sargent’s Sons Division (United States) V.I.T. SA (Greece) C.B. Kaymich & Co.ApronLtd. Pins (United Kingdom) Diamond Metal Screens Pvt. Ltd. (India) PAK-TEC, Inc. (United States) Art Paper & Board Tervakosi Oy (Finland) SPI Developments Ltd. (United Kingdom)

AG Sales & Service (United States) Barrettine Environmental Health (United Kingdom) Casa Bernardo Ltda. (Brazil) Chemprene (United States) Chemtura AgroSolutions (Latin America) Cochran Corp. (United States) Fair Products, Inc. (United States) Fersol (Brazil) Lurgi GmbH (Germany) Sunzon International (United States) Unichema International (Germany) Yara North America, Inc. (United States)

Agricultural Equipment & Machinery AG Sales & Service (United States) Beltwide Inc. (United States) Carolina Soil do Brasil Ltda. (Brazil) de Cloet Ltd. (Canada) Farmquip (Pvt.) Ltd. (Zimbabwe) Kali Und Salz GmbH (Germany) Long Agribusiness (United States) Maquinas Binz Industria e Comercio Ltda. (Brazil)

International Baler Corp. (United States)

Baling Press see Presses (Balers)

Abdullah Khan Tobacco Corp., 3-28-15/1 Brundavin Gardens, Guntur, A. P. 522007, India. Tel: +91 863 2354 576.

Fax: +91 863 2354 576. Email: abdulla_tobacco@yahoo.com.

Personnel: Abdullah Khan, managing partner; Saamir Khan, export division. Business Type: Leaf Dealers.

see Homogenized Tobacco

Band Tobacco Machinery

Comas S pA (Italy) Garbuio Dickinson (United Kingdom) Godioli & Bellanti SpA (Italy) Griffin Cardwell Ltd. (England) Griffin & Co. Inc. (United States) Hauni Maschinenbau AG (Germany) International Tobacco Machinery BV (Netherlands) Koehl Tobacco GmbH (Germany) Kunming Shipbuilding Equipment Co. Ltd. (China) The LTL Group (United Kingdom) Muzer Makina San. ve Tic. Ltd. Sti. (Turkey)

ABN Amro Bank, Herengracht 595, Amsterdam 1000 AB, Netherlands. Tel: +31 20 628 6365. Fax: +31 20 628 7697.

Business Type: Suppliers.

see Homogenized Tobacco Making Machinery

Bandaroling Machines emkon. (Germany) Focke & Co. (GmbH & Co. KG) (Germany) Hauni Maschinenbau AG (Germany)

Abul Khair Leaf Tobacco Co. Ltd., D.T. Road, Pahartali, Chittagong 4000, Bangladesh. Tel: +880 31 714561 4. Fax: +880 31 710051/720239. Email: tobacco@abulkhairgroup. com. Web: www.abulkhairtobacco.com. Business Type: Cigarette Manufacturers, Distribution/Product, Importers & Exporters, Leaf Dealers.

Banding Machines C.A.T. d. Corsini G&C SpA (Italy)

Base Paper

Accumen Technology, Watermeadow House, Watermeadow, Chesham, Bucks HP51LF, United Kingdom. Tel: +44 1 494

BMJ (Indonesia) Dr. Franz Fuerstein GmbH (Austria) Mudanjiang Hengfeng Paper Co., Ltd. (China) Tervakosi Oy (Finland)

Beedies Soex India Pvt. Ltd (India) Sopariwala Exports Pvt. Ltd (India)

Belt Fasteners

Mechanic Muller Vin Opico (Un Powell Ma Taylor Ma

Ammeraal Beltech Holding BV (Netherlands) Ammeraal Beltech Inc. (United States) Flexco (United States) Forbo Siegling, LLC (United States) Haynes Rubber & Supply Co., Lewis-Goetz (United States) Jerry Brothers Industries, Inc. (United States) Mcleod Belting Co., Inc. (United States) Piedmont Belting Co. (United States) Sparks Belting Co. (United States) Ton-Tex Corp. (United States)

Belts & Belting Agency for Dematic Corp. (United States) Ammeraal Beltech GmbH (Germany) Ammeraal Beltech Holding BV (Netherlands) Esbelt SA (Spain) Malcam (Israel) Max Schlatterer GmbH & Co. KG (Germany) Sampla Belting S.P.A. (Italy) Verseidag Beltech Group (Germany)

Bale Slicers

Vintero Corporation (United States)

Adhesives

ABC Tobacco, Higienopolis 1601, Eurocenter sala 1203, Londrina 86015 010, Brazil. Tel: +55 43 3336 3300. Fax: +55 43 3339 5001. Email: contact@abctobacco.com. Web: www. abctobacco.com. Personnel: Camila Silva; Maroun Khouri.

Blended Cut Tobacco

Air Filter Csonka W Hauni Mas Renold, In Tholander Tornex Inc United Air 2018 Up-To-Da 39

A. Asbjornsens Tobaksfabrik AS (Norway) Fumarole (Pvt.) Ltd. (Zimbabwe) Independent Leaf Tobacco Company, Inc. (United States) Tobacco Products International FZ-LLC (United Arab Emirates) Top Tobacco International, Inc. (United States)

Blending Machines & Mixing Plants Ets. Joseph Cruanas (France) Franz Sagemüller GmbH (Germany) Godioli & Bellanti SpA (Italy) Griffin & Co. Inc. (United States)

Baumer hhs GmbH (Germany) T b I t ti l B ’ G id & Gl b l Di Eastern Company S.A.E (Egypt) Edelstein Industries Inc. (Canada) FORBO-Swift Adhesives Ltd. (England) Forbo Swift Adhesives Ltd. (United Kingdom) Haynes Rubber & Supply Co., Lewis-Goetz (United States) H.B. Fuller Co. (United States) H.B. Fuller GmbH (Germany) Henkel & Cie AG (Switzerland) Henkel KG (Germany) Hitkari Trading Corporation (India)

t

Fax: +66 2 237 6111. Email: info@adamsint.com. Web: www. adamsint.com. Personnel: Allen Tucker, director; Karl Kunz; Sunchal Chongsuknlrandr, director; Rao Somesh, Director; Altemir Wollmann, Director; Arjaree Yatirukpien, director; Wing F Chung, managing director; Henrik Baark, Director; Prem Thoonkapbalin, director. Business Type: Leaf Dealers.

Offices: F + K.Factory:, 174 Jangsanit Rd., Ban Phai, Khon Kaen 40110, Thailand. Tel: +66 43 272 372/073.

Fax: +66 43 272 370.

Pahartali, 4561 4. Fax: ulkhairgroup. ess Type: Importers &

Watermeadow, : +44 1 494 Colin Bunting, ector; e: Suppliers.

Aluminu AL INVEST

Admiral Electronic Cigarettes, 7020 Hayvenhurst Avenue, Suite A, Van Nuys, California 91406, United States. Tel: (818) 9889568. Business Type: Suppliers. Products: Electronic Cigarettes.

Adolfo Pfeiffer SA, cl. Velazquez 136, 28006, Madrid 28006, Spain. Tel: +34 91 562 98 04. Fax: +34 91 561 21 88. Email: adolfo.pfeiffer.sa@auna.com. Personnel: Adolfo Pfeiffer Seghers, managing director. Business Type: Leaf Dealers.

Aegean Tobacco Exporters Association, Ataturk Cad. No: 382, Alsancak, Izmir 35220, Turkey. Tel: +90 232 463 69 50. Fax: +90 232 463 39 41. Email: eib1@egebirlik.org.tr.

Web: www.egebirlik.org.tr. Personnel: Sezmen Alper, sec.

General; Tahir Kanlikuyu, department manager. Business Type: Associations.

AER Premium Electronic Cigarettes, 5130 Avenida Encinas, Carlsbad, California 92008, United States. Tel: (800) 570-6350. Business Type: Suppliers. Products: Electronic Cigarettes.

AET Films, 15 Read’s Way, New Castle, DE 19720, United States. Tel: +1 302 326 5500. Fax: +1 302 326 5501. Email: info@aetinc.com. Web: www.aetfilms.com. Personnel: Bill Swain; Denis Alexander; James R. Rich; Ronald N. Rodeck.

Business Type: Suppliers. Products: Film (Polypropylene).

AET Sales, 4601 Olde Forest Drive, Greenboro, North Carolina 27406, United States. Tel: +1 336 674 0100.

Business Type: Suppliers.

AA Agrisense BCS Ltd., Unit 1, Taff Mead Rd., Treforest Industrial Estate, Pontypridd, Mid Glamorgan CF375SU, United Kingdom. Tel: +44 1443 841 155. Fax: +44 1443 841 152.

Business Type: Suppliers. Products: Fumigation Equipment & Systems, Pesticides, Product Security.

Agritab SRL, 11 Berzei, Sector 1, Bucharest 70759, Romania.

Tel: +40 1 3121 074. Fax: +40 1 3121 074. Personnel: D. Ionescu, chairman & c.e.o. Business Type: Leaf Dealers.

Agrotab, Monte da Barca, P.O. Box 53, 2104-909 Coruche, Portugal. Tel: +351 243 610 700. Fax: +351 243 610 798.

Email: agrotab@pmintl.com. Personnel: Jose` Lourinho, director; Carlos Santiago, president. Business Type: Leaf Dealers.

A. Habeebur Rahman Sons, # 4/5 (New #28), Jamalia Nagar, Perambur High Road, Chennai, T.N. 600 012, India. Tel: +91 44 2662 3676/2662 2636. Fax: +91 44 2662 5045. Email: info@ sbidis.com. Web: www.sbidis.com. Personnel: A. Uvais Ahmed, director; A. Mohamed Ashraf, director. Business Type: Cigarette Manufacturers, Product Manufacturers, Smoking Tobacco.

Ahlstrom/Labelpack Division, 6, Rue de Rome, Rosny-sousBois Cedex F 93561, France. Tel: +33 1 4935 40 40. Email: labelpack@ahlstrom.com. Web: www.ahlstrom.com/lp.

Ahmed & Sons, B-53 Willayatabad Manghopir Road, Karachi 75700, Pakistan. Tel: 0092 213 2577026. Fax: 0092 213 2572516. Email: info@ahmedsons.us. Web: http://www. ahmedsons.us. Business Type: Suppliers. Products: Garniture Tapes, Suction Tapes.

Aiger Engineering Ltd., P.O. Box 77, 246 Vasillevski St., Plovdiv BG-4003, Bulgaria. Tel: +359 32 905001.

Fax: +359 32 947001. Email: sales@aiger.com. Web: www. aiger.com. Personnel: Simon Strothers, group sales and marketing director; Dimitar Yanchev, general manager; Michael Houldsworth, Director Aiger UK. Ltd. Business Type:

Suppliers. Products: Carton Boxing/Forming Machinery, 79 4633. Fax: +44 1 494 794 644. Personnel: Colin Bunting, Africaleaf (Malawi) Ltd., Plot 29/173B Alimaunde, P.O. 3300. Fax: +55 Cigarette Filter Tip Machines, Cigarette Making marketing director; Frank Daugherty, sales director; Box 40012, Kanengo, Lilongwe 4, Malawi. Tel: +265 1 710 Machinery, Cigarette Tax Stamping Machines, Cutters & Evason, technical director. Business Type: Suppliers.

914. Fax: +265 1 712 417. Email: leaf@africaleaf.com. Web: Cutting Machines, Packaging Machinery, Aegean Tobacco Exporters Association, Ataturk Cad.Rebuilt No:Machinery m. Web:John www.

Products: Weight Control Equipment. www.tribac.com. Personnel: A.C. Masi, shipping director; R.I. Materials-Non Tobacco, Spare Parts, Wrapping Machines.

Glenn, director (alternate); S.A. Marshall, finance director; Office: Aiger Group AG. Tel: +41 41 7267873.

Ace Interactive Ltd., Unit 3, 94 Charlton Road, Andover, 382, Alsancak, Izmir Turkey.

232 463 69LLC. M. Gange Harris, leaf35220, director; C.D. Le Patourel, managing Tel: oun Khouri.

Email:+90 office@hqgroup.aiger.com.

Aiger USA Hants SP10 3JZ, United Kingdom. Tel: +44 1264 350 424. director. Business Type: Leaf Dealers.

Tel: +1 412 616 2833. Fax: +1 412 251 0466. Email: sales@ Fax: +44 1264 356 281. Email: sales@ace-interactive.com. usa.aiger.com. Aiger Far East Ltd. Tel: +65 9272 2203.

50. Fax: 232C.P.463 39de Castilhos 41. 1021/31, Email: Web: www.ace-interactive.com. Personnel: Barry austin,+90 Afubra, 1021, Rua Julio Santa eib1@egebirlik.org.tr.

Email: kevin.ang@aiger.com. Aiger UK Ltd. Tel: +44 (0) 121 operations director; Keith Tarrant, quality manager; Michael Cruz do Sul, RS 96800, Brazil. Tel: +55 51 371 13244.

230 1768. Email: sales@aiger.com. undavinCole, managing director. Business Type: Suppliers.

Business Type: Associations.

Web: www.egebirlik.org.tr.

Personnel: Sezmen Alper, sec.

Products: Classifying Equipment, Grinding Wheels, Knives, Airco DIET, 110 Allen Rd., Liberty Corner 07938, United AG Sales & Service, 1185 Pineridge Rd., Norfolk, VA 23502, Metal Detectors, Spare Parts.

863 2354 576.

States. Tel: +1 908 626 2700. Fax: +1 908 626 9650. Email: States. Tel: +1 757 855 0191.

Fax: +1 757 855 4155. manager. Business General; TahirUnitedKanlikuyu, department aircodiet@aircodiet.com. Personnel: M. Auerbach, president; Ackerman and Baynes LLC., 4211-15 Erdman Ave., Business Type: Suppliers. Products: Agricultural Chemicals, K. Laigaard, projects director. Business Type: Suppliers. co@yahoo.com.

Baltimore, MD 21213-2698, United States. Tel: +1 410 342 Agricultural Equipment & Machinery, Fertilizers, Tear Tapes.

Products: Expanded Tobacco, Tobacco Expansion Systems Type: Associations.

2216. Fax: +1 410 563 3971. Email: matt.smith@ackbay.

(CRS), Tobacco Expansion Systems (DIET), Tobacco Expansion Agency for Dematic Corp., 507 Plymouth Avenue, N.E., com. Web: www.ackbay.com. Personnel: Matthew Smith, Saamir Khan, Systems Machinery.

Grand Rapids 49505-6029, United States. Tel: +1 616 913 Sales. Business Type: Suppliers. Products: Drying Machinery, 7700. Fax: +1 616 913 7701. Email: usinfo@dematic.com.

Feeders, Rotary Dryers, Spare Parts.

Airco DIET AS, Snaremosevej 27, Fredericia 7000, Denmark.

AER PremiumWeb:Electronic Cigarettes, www.dematic.com. Business Type: Suppliers. Products:5130 Tel: +45 Avenida 76201530. Fax: +45 76201531. Email: aircodiet@ Adamantine Precision Tools Ltd., 501 Research Rd., Belts & Belting, Conveyor Systems, Packaging Machinery, aircodiet.com. Web: www.aircodiet.com. Personnel: Asbjorn Richmond 23236-3090, United States. Tel: +1 804 794 9615.

Storage Warehousing.

Schwert, managing director; Kel Laigaard, director. Business Encinas,Business Carlsbad, California 92008, United States.

Tel: (800) Fax: +1 804 794 9514. Email: sales@Fi-Tech.com.

Type: Suppliers. Products: Processing Machinery.

Agio Cigars, Wolverstraat 3, 5525 AR Duizel, Netherlands.

Suppliers. Products: Grinders, Grinding Wheels, Knife m 1000Type: AB, Tel: +31 497 58 25 00. Fax: +31Suppliers.

497 51 64 06. Email: info@ Grinders & Sharpeners, Spare Parts.

Air-cured Tobacco Assn., P.O. Box 1979, BMZ Tobacco 570-6350. Business Type: Products: Electronic agiocigars.nl. Web: www.agiocigars.com. Business Type: Auction Floors, Willowvale, Harare, Zimbabwe. Tel: +263 4 20 628 Adams 7697.

International Ltd., 5/26-29 Saladang Road, Silom, Cigar Manufacturers, Product Manufacturers.

621 331 4. Fax: +263 4 614 489. Email: acta@africaonline.

Cigarettes.

Bangrak, Bangkok 10500, Thailand.

Tel: +66 2 233 9818. co.zw. Business Type: Associations.

Agricultural Development & Marketing Corp., P.O. Box

Aluminu BMJ (Ind ColourPac Eastern Co Edelstein KneX Wor Novelis De

AD DIMON Gorica, Industriska Bb, Vinica, Macedonia. Tel: +389 33 360 832. Fax: +389 33 360 832. Personnel: Simon Green, regional director Europe (based in UK); Arie Maan, Jr., country manager. Business Type: Leaf Dealers. Office: DIMON MD AD, 11 Nov Belgrad, Kavardarci, Macedonia.

Tel: +389 43 414 603. Fax: +389 43 414 605.

Andover

3052, Limbe, Malawi. Tel: +265 64 00 44. Fax: +265 64 04 86. Personnel: B.D. Kandeya, tobacco marketing manager;

Akay Filtips, 21/24B Nariman Bhawan, 227 Nariman Point, Mumbai 400021, India. Tel: +91 22 2043583. Personnel: Ajit

F.A.Read’s Jumbe, g.m.; A.M.B. KythembaNew Mwale, asst.Castle, g.m. BusiV. Shah. 19720, Business Type: Suppliers.

Products: Filters.

AET Films, 15ness Way, DE United Type: Associations, Leaf Dealers.

Akiki’s SARL, Nahr Ibrahim Akiki Bldg., Jounieh 1899, Registered Office: Post Box 15, Mangalagiri Lebanon.326 Tel: +9615501.

9 440739. Fax:Email: +961 9 901934. Email: States. Tel: +1Agrimmcor 302Ltd.,326 5500.

Fax: +1 302 takiki@akikis.com. Web: www.akikis.com. Personnel: T C Rd., Guntur, A. P. 522001, India. Tel: +91 863 222 261.

Akiki, director; Y Akiki, director. Business Type: Cigar ManuFax: +91 863 356701. Personnel: B.V.S. Raju, executive. info@aetinc.com.

Web: www.aetfilms.com.

Bill facturers,Personnel: Cigarillo Makers, Product Manufacturers.

Business Type: Leaf Dealers.

Swain; Denis Alexander; James R. Rich; Ronald N. Rodeck.

Tobacco International Buyers’ Guide & Global Directory 2018 79 Business Type: Suppliers. Products: Film (Polypropylene).

AET Sales, 4601 Olde Forest Drive, Greenboro, North Carolina 27406, United States. Tel: +1 336 674 0100.

Business Type: Suppliers.

Africaleaf (Malawi) Ltd., Plot 29/173B Alimaunde, P.O. Box 40012, Kanengo, Lilongwe 4, Malawi. Tel: +265 1 710 914. Fax: +265 1 712 417. Email: leaf@africaleaf.com. Web: www.tribac.com. Personnel: A.C. Masi, shipping director; R.I. Glenn, director (alternate); S.A. Marshall, finance director;

Peramb 2662 3 sbidis.c directo Manufa Ahlstr Bois C labelpa Ahmed 75700 25725 ahmed Tapes, Aiger Plovdiv Fax: + aiger.c marke Michae Suppli Cigare Machin Cutting Materi Office:

www.tobaccointernational.com • sales@tobaccointernational.com

SUPPLIER UPDATE

Some of FruitSmart’s products, left to right: whole fruit powders, dices, and nuggets; essences; and fibers and seed powders.

cash flow, Universal Corporation will continue to explore additional growth opportunities in plant-based ingredients processing and other attractive adjacencies, said Universal. “[We will] maintain our commitment to our investment grade credit rating and to increasing our quarterly dividend on an annual basis, as we have done for 49 consecutive years.”

FruitSmart is a market leader for

“FruitSmart and our employees will benefit from Universal’s global agri-products services and supply chain management expertise, as well as the greater resources and enhanced scale of a larger, public company,” said Chambers. “We will maintain our continued commitment to outstanding product quality and our strong relationships with our growers and our customers.”

With a healthy balance sheet and a demonstrated ability to generate free cash flow, Universal Corporation will continue to explore additional growth opportunities in plant-based ingredients processing and other attractive adjacencies, said Universal reliability of supply, high-quality products and customized solutions, said Freeman. “We are excited to work with the talented and highly regarded FruitSmart management team to build on this strong foundation and FruitSmart’s demonstrated ability to achieve profitable growth.”

The transaction is expected to close in the current fiscal year, subject to customary closing conditions. Terry Chambers, president of FruitSmart, will continue as President.

Recent shifts in consumer behavior FruitSmart is well-positioned to capitalize on recent shifts in market dynamics and consumer behavior including a secular shift towards health and wellness, favoring natural clean-label ingredient producers and the rise of fruit as a natural clean-label sweetener alternative to processed sugar.

FruitSmart also stands to benefit from growing consumer interest in better-for-you premium ingredients, including custom blends, not-from-con-

34 TOBACCO INTERNATIONAL DECEMBER 2019

centrate and dry products, and strong growth in targeted end markets utilizing FruitSmart products, including ciders, purees and nutraceuticals.

Universal Corporation anticipates this acquisition will be accretive to earnings the first fiscal year following closing. Universal Corporation believes businesses in adjacent industries could represent at least 10 to 20 percent of earnings in the next five years.

Universal Corporation expects to fund the transaction with a combination of cash on hand and existing borrowing capacity.

FruitSmart owns and operates a 335,000 square foot outside storage facility with dry/ refrigerated/freezer space which occupies 19 acres in Prosser, Washington, USA.

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COULD BREXIT MAKE HOW A CODING A SMOKER BRITAIN’S STATION APPROACH PRIME MINISTER? HELPS IN A TRACK & TRACE PROGRAM

A JOINT LEAF VENTURE IS ONE STEP CLOSER IN NAMIBIA

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LEAF NEWS A worker harvests the last of the 2019 flue-cured crop near Wilson, N.C.

Above: The auction season winds up in Wilson, N.C. Below: Tom Shaw of Vance County, N.C., lost a lot of quality on his flue-cured this year.

“Marketing this crop was a challenge,” he said.

UNITED STATES Growers Bemoan a Bad Year raleigh, n.c.—Flue-cured purchasing concluded in mid-November. Overall quality to date can be classified as fair to average in quality, color and maturity.

Tobacco in the Old Belt (western N.C. and Virginia) was unusually late in delivery and because of excessive dry weather conditions. Low yields and sunbaking were reported.

All burley had been harvested by mid November, and curing was ongoing at the time of this writing. Excessive hot and dry weather conditions in the later part of the growing season negatively affected the yield and quality of the crop. Burley that was harvested early in the season reportedly suffered less dry-weather crop stress. The opening of burley marketing was set to commence in late November or early December.

36 TOBACCO INTERNATIONAL DECEMBER 2019

Grower Bennie Davis of Surgoinsville, in upper east Tennessee, said his burley attained decent size early in the season. But then the rain stopped. “We didn’t have enough water to fill it out,” he said. Davis harvested in September, roughly on schedule, but the weather problem continued, and through late November he hadn’t been able to strip any of it.”It is sappy in the top third of the plant,” he said. “We will have a hard

A season of bad weather plus a poor outlook for 2020 may lead to the disappearance of tobacco from the Ridge and Valley region of east Tennessee, says burley grower Bennie Davis of Surgoinsville.

time marketing a desirable crop, and it is going to be light.”

Hawkins County, Tn., where Davis farms on the border with Virginia, once had a thriving burley crop. But as best Davis can tell now, there were only three growers this year, including him.

The bad prospects for 2020 may bring an historic industry to its end in this mountainous area nestled where the Blue Ridge Mountains meet the Tennessee River Valley.

The weather was miserable for fluecured grower Jeff Turlington of Coats, N.C., just south of Raleigh. “We had drought from the beginning, then too much rain for several months, then Hurricane Dorian.” Dorian brought 45 to 50 mile gusts that hastened ripening to a point where he couldn’t get it harvested before deterioration. “We made about a half crop,” he said.

The yield was definitely reduced too for Tom Shaw of Vance County, N.C., north of Raleigh, thanks to the weather.

Quality too. «Marketing this crop was a challenge,” he said. “Our problem was trash and ‘burnt tails.’” —Bickers

ZIMBABWE Big Yield, Low Price harare—Zimbabwe tobacco production set a record despite a damaging drought, exceeding 257.5 million

UNITED STATES Pyxus’s Leaf Plan: Minimize Uncommitted Inventory The world leaf business is performing in line with expectations, says Pieter Sikkel, chairman, president and CEO of Pyxus International “This past quarter we have experienced strong volumes, solid orders across geographies, including China, and improving margins, demonstrating the benefit of the implementation

kilograms. That is slightly higher than the previous record of 252.5 million kilograms produced last season.

Unfortunately, the average price was the lowest in 10 years, US$2.03 per kg, down 89 cents per kg from 2018.

Tobacco farmer Michael Kizito of Karoi told Zimbabwean publication Fin 24, “This year I increased my tobacco planting area and spent more money than before, but after selling I have nothing to show for it. I even failed to meet all my debts.”

The average price was not enough to cover production costs. “After paying the contractor and my farm laborers I was left with very little to get me by. Getting back into the field this coming season is going to be a challenge. I see farmers scaling down production or pull out from tobacco farming altogether.” of strategic initiatives our team continues to execute,” he says.

Pyxus remains focused on maintaining low levels of uncommitted inventory and driving forward other key efforts aligned with its working capital strategy.

“While some markets continue to present certain challenges, such as the U.S., which remains impacted by the ongoing trade tensions with China, we are encouraged by other markets,” he said.

DECEMBER 2019 TOBACCO INTERNATIONAL

37

CALENDAR OF EVENTS January 20–23, 2020 49th TWC (Tobacco Workers’ Conference) Louisville, Kentucky, USA. Email: info@ TWConference.com, Web: twconference.com.

tobaccointernational.com

January 23–31, 2020 TPE20 International (Tobacco Plus Expo) Las Vegas Convention Center, Las Vegas, Nevada, USA. Web: tobaccoplusexpo.com.

February 16–21, 2020 12th Annual ProCigar Festival La Romana and Santiago de los Caballeros, Dominican Republic. Premium cigar festival.

Contact: ProCigar, Web: procigar.org.

February 24–28, 2020 22nd Festival del Habano Havana, Cuba. Farm/factory tours, seminars, trade show, Habanos World Challenge contest, gala closing dinner. Web: habanos.com.

October 11–15, 2020 CORESTA Congress Vienna Hilton Hotel, Vienna, Austria.

Contact: Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA), Web: coresta.org.

September 27–30, 2020 74th TSRC (Tobacco Science Research Conference) Westin Boston Waterfront, Boston, Mass., USA. Web: tsrcinfo.com.

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The authority on the tobacco industry since 1886

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2019 BUYERS’ GUIDE & GLOBAL DIRECTORY Product Manufacturers

The End of Smoking in the

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Equipment & Machinery

The Biggest Cigarette Smuggling Problem in the U.S.

Supplies & Services Leaf Dealers, Growers & Processors

HOW JTI IS MAKING PROGRESS TOWARD TOBACCO SUSTAINABILITY

COULD BREXIT MAKE HOW A CODING A SMOKER BRITAIN’S STATION APPROACH PRIME MINISTER? HELPS IN A TRACK & TRACE PROGRAM

A JOINT LEAF VENTURE IS ONE STEP CLOSER IN NAMIBIA

Associations

ORIENTAL LEAF MARKETS IN EQUILIBRIUM

REGULATIONS RISE ON RUSSIAN TOBACCO

A REPORT ON BRAZILIAN LEAF IN 2019

GROWING SEASON BEGINS IN NORTH AMERICA

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ADVERTISER INDEX BMJ......................................................................... 4, 5

SWM International ..................................................... 25

Boegli-Gravures SA .................................................... C2

Tobacco International Buyers’ Guide........................... 33

delfort Group ...................................................... 7, 9, 11

TSAL Ltd. (Tobacco Solutions Asia Limited) ............... 27

Star Agritech International ................................... 17, 29

U.S. Tobacco Cooperative, Inc. .................................... 3

Sumatra ..................................................................... 19

Universal Leaf Tobacco Company, Inc. ...................... 21

38 TOBACCO INTERNATIONAL DECEMBER 2019

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 4, 2019

• STG to Shutter USA’s Lane Ltd. Factory • The Return of Dean Parsons & Epic Cigars

PHIL ZANGHI GOES FULL CIRCLE The creator of Indian Tabac Cigars is back in the rider’s seat with the global trademark license for his latest blending adventure, Indian Motorcycle Cigars.

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{Contents} 6

TOBACCO PRODUCTS INTERNATIONAL » Q4 2019

FEATURES

{ EDITORIAL }

{ BOUTIQUE SPOTLIGHT }

E. EDWARD “TED” HOYT III Editor

6 Phil Zanghi, Indian Motorcycle Cigars: Coming Full Circle. Today’s Indian Motorcycle, and its companion premium cigar launched in 2015, have followed a long and winding road, second only perhaps to cigar maker Phil Zanghi’s own professional journey. Once again, Zanghi is riding high at the center an iconic, and very personal, American classic. » BY FRANK SELTZER

ROBERT M. LOCKWOOD Publisher & President { ART & PRODUCTION } MELINDA AYALA Production Coordinator ROXANNE CORDOVA MELENDEZ Accountant

{ BOUTIQUE SPOTLIGHT }

10 Dean Parsons, Epic Cigars: An Epic Return. Epic Cigars has made surprisingly swift strides under founder Dean Parson’s dream of building an international cigar brand. Following its recent purchase by Zander-Greg, Epic is eager to continue building its European base. » BY E. EDWARD HOYT III

12

Industry News .......................................4 Brand News .......................................... 12 Product Showcase ................................. 14

ALL REGIONS

Robert M. Lockwood TEL: + 1-212-391-2060, x111 EMAIL: robert@lockwoodpublications.com SPECIAL SALES REPRESENTATIVE

George E. Lockwood TEL: + 1-413-775-0005 FAX: + 1-413-775-9010 EMAIL: lockwood.george@gmail.com Tobacco Products International Lockwood Trade Journal Co. Inc., 3743 Crescent Street, Second Floor Long Island City, New York 11101 U.S.A. Tel: +1 (212) 391-2060 SUBSCRIPTION SERVICES:

info@lockwoodpublications.com EDITORIAL SUBMISSIONS/INQUIRIES:

editor@tobaccoproductsmag.com

14

10

DEPARTMENTS

{ ADVERTISING REPRESENTATIVES }

AD INDEX David Ross International s.r.l. ....... 13 Republic Technologies ................... 5 Roll 4 You .................................. C2

Tobacco Products INTERNATIONAL

Tobacco Products International

TPI 3

{Industry News} Registration Opens for Cuba’s 22nd Habano Festival Habanos, S.A. has opened registration for the 22nd Habano Festival

Oliva Cigars Nicaragua Factory Tabolisa II Marks First Year Rolling Premium Cigars

(habanos.com), which will take

ESTELÍ, NICARAGUA—Tabolisa

February 23.

II, the newest factory opened by Oliva Cigars in Estelí,

Nicaragua, in December 2018, has marked its first full year of operation. This was the

place in Havana, Cuba from February 24–28, 2020. Check-in will begin Monday, February 24 will include

second new factory to come online in a short span of time for the company, having

a press conference at the conven-

followed the January 2018 opening of its first facility built according to western stan-

tion center, the 3rd Habanos World

dards where high quality wooden boxes are made. Tabolisa II focuses solely on the

Challenge Preliminary Contest, the

art of rolling cigars for the group’s various brands (Oliva, Nub, and Cain), with a daily

opening of the Trade Fair, and a

capacity of 25,000 cigars. In total, Oliva

welcome evening devoted to the

employs around 1,500 people in Nicaragua.

Bolívar brand at Club Habana.

Since the purchase of Oliva by J. Cortès

Tuesday, February 25 will host

in 2016, the company has been fully invest-

a visit to tobacco plantations in the

ing in a policy of expansion in Nicaragua.

Partido Zone (D.O.P) San Antonio

The opening of Tabolisa II a year was there-

de los Baños, Artemisa.

fore just a part of the expansion plans. The

Wednesday, February 26 will fea-

first Tabolisa factory, “Tabolisa Uno,” already

ture the opening of the International

went through a renovation and extension process throughout 2018, and was recently

Seminar, master lectures on

completed. According to J. Cortès, these improvements should result in a serious

“Habanos and its brands” by Ciro

capacity increase and improved working conditions for the employees.

Bianchi and “El Bello Habano” by

“From the very beginning of Oliva’s takeover, we always emphasized the fact

Reynaldo González; master classes

that nothing would change regarding the brands and the quality on the one hand,

on handmade rolling technique and

and the management and composition of the company on the other,” said Fred

“The making of a parejo cigar” by

Vandermarliere, CEO J. Cortès. “ We did and do see plenty of potential for Oliva, with

Miguel Barzaga; and an evening ded-

corresponding modernization where necessary.”

icated to celebrate the 30th anniversary of La Casa del Habano and 85th

STG to Shutter USA Tobacco Factory Lane Ltd. TUCKER, GEORGIA—Scandinavian Tobacco

The Tucker facility manufactures

anniversary of the Montecristo brand.

Thursday, February 27 will feature visits to the La Corona and

Group (STG) announced it will reduce

brands within the group´s portfolios of

Partagás habanos factories; a spe-

the number of its production sites from

pipe tobacco, fine-cut tobacco, and little

cial tasting event; and a presenta-

12 to 11 by closing its Scandinavian

cigars. As these markets are declining,

tion entitled “Habanos Moments.”

Tobacco Group Lane Ltd. facility in

excess capacity across STG’s manufac-

Tucker, Georgia, U.S.A. and moving

turing footprint has been established. The

Habanos World Challenge Contest

production to its production facilities in

closure of the facility in Tucker will adjust

Finals will be held, as well a Zenith

Assens and Holstebro, Denmark and

the capacity to current and projected

and Habanos presentation; an

Santiago, the Dominican Republic. The

volumes and is expected to improve the

awards ceremony for best trade fair

closure is expected to be completed

group’s overall annual cost structure by

stands; and the gala closing evening

by the end of 2020. Lane was originally

more than DKK 20 million when fully

dedicated to Romeo y Julieta brand.

founded in Dresden, Germany in 1890.

implemented by the end of 2020.

TPI 4

Q4 2019

Finally, on Friday February 28 the

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{ Boutique Spotlight} > Cigar maker Phil Zanghi holds the global licensing rights for Indian Motorcycle Cigars, his latest series of boutique blends.

Phil Zanghi, Indian Motorcycle Cigars

Coming Full Circle Today’s Indian Motorcycle, and its companion premium cigar launched in 2015, have followed a long and winding road, second only to cigar maker Phil Zanghi’s own professional journey. Once again, Zanghi is riding high at the center an iconic, and very personal, American classic. » BY FRANK SELTZER

duce his cigars. He got them, but then things did not go as planned.

“The motorcycle company was not all it seemed,” says Zanghi, “and my father robbed all the money from the company. It was a big drama. At that point we moved to North Carolina to concentrate on the accessories and apparel for Indian Motorcycle. We still had the pretense of building the bike. When it fell all apart, I was still in North Carolina and still had all the cigars. The only thing I

he cigar business is in Phil Zang-

T

with his Debonaire line and more re-

had left from Indian Motorcycle Compa-

hi’s blood. After all, what high

cently with his latest brand, Indian Mo-

ny was the cigars and the Indian Tabac

school senior starts his own ci-

torcycle, which brings him full circle.

Company.” With no money, Zanghi did

gar company? That’s what Zanghi did in

In 1990, Zanghi’s father had started

grunt work moving furniture to save up

1991, when he founded Indian Tabac.

Indian Motorcycle Company in Mas-

some cash to fulfill his dream of Indian

That company has come and gone, but

sachusetts, USA with the promise of

Tabac. That was in 1994, just as the ci-

Zanghi has continued on. For a while,

making the legendary bike once more.

gar boom was taking off.

he left the premiums to help partner

Zanghi thought the cigar was a natural

Zanghi went back down to Hondu-

Danny Sinclair on the mass market

tie-in, so he went for it, partnering with

ras and to U.S. Tobacco to get more ci-

side, but eventually came back—first

U.S. Tobacco in Danlí, Honduras to pro-

gars made, but was told the company

TPI 6

Q4 2019

was no longer making cigars for outsiders: rapidly growing backorders meant cutting loose all private label work. UST gave him back his bands and boxes, leaving Zanghi in the lurch. But he soon found another factory in Danlí. He was getting tobacco wherever he could,

Zanghi’s first cigar was made in 1990 by UST in Honduras, a companion to his father’s Indian Cigar Motorcycle Company.

“When it fell all apart, I was still in North Carolina and still had all the cigars. The only thing I had left from Indian Motorcycle Company was the cigars and the Indian Tabac Company.”

—Phil Zanghi

but then the Plasencias saw the hard work he was putting in, making the cigars then going up to the States to

market side of the industry and doing

gua knew “Zanghiipo.” Zanghi agreed

sell them, all as a one-man-show. They

well, but he was having trouble with his

and by 2002 was working full time with

helped Zanghi get tobacco and eventu-

factory. He asked Zanghi to come help,

Danny. The next year was a lot of work

ally brought him into their factory.

since everyone in Honduras and Nicara-

as the Honduran factory continued to

About the same time, Zanghi got word that his father was gravely ill in California, and went out to see him, as he was now trying to make amends— the two had not spoken since the Indian fiasco. Zanghi’s father was a founding member of the Grand Havana room in Beverly Hills, so Zanghi asked him for a membership to the club and a car so he could get on the road selling his Indian Tabac cigars. His father complied.

It was at the Grand Havana room where Zanghi officially launched Indian Tabac and he also met an attorney who was crazy for cigars and asked Zanghi if he wanted a partner. The guy was Rocky Patel. The two hit it off. Zanghi worked out of Rocky’s office and became roommates with Rocky in Venice.

From 1995 through 1997, Zanghi was doing all the work and Rocky was the silent partner. But the following year, 1998, Rocky started going on the road to help out with sales.

The pair had a lot of great cigars and good tobacco thanks to Nestor Plasencia, but for Zanghi it meant too much work: being in Latin America at the factory and then out on the road. Rocky liked the salesman role and the two had a falling out. By 2001 Zanghi was done and planned to become an air marshal since he had just had his first son. But a man he had met in 1997, Danny Sinclair, had other ideas.

Sinclair was working on the mass Tobacco Products International

TPI 7

{Manufacturer Spotlight} licensing agent he knew. It seems the new Indian Motorcycle Company wanted a cigar to go with the bike. Chris told the agent, “boy do I have a guy for you,” and put him in touch with Zanghi.

While Zanghi still owned Indian Tabac, he didn’t want to resurrect that brand, instead he wanted to use Indian Motorcycle’s trademark. After negotiations, Polaris agreed and Zanghi became one of the few true licensees—a worldwide exclusive regarding tobacco.

His first cigars came out in 2015 under the Indian Motorcycle brand—a pair of blends featuring a Habano or Maduro wrapper. Both sold well because they were well priced at $7 to $9 each and they carried the famous Indian name.

Polaris was rapidly building Indian into a > THAT WAS THEN. Above: Phil Zanghi created Indian Tabac Cigar Co. as a high school senior. Rocky Patel joined the fledgling firm as a silent partner in 1995, and later became an integral part of operations. By 2001 Patel had became sole owner, ultimately re-branding the firm in his own name. Left: Zanghi, Patel, and original Debonaire trademark owner Danny Sinclair.

powerhouse with over 300 dealerships around the world and a billion dollars in sales. All of that helped Zanghi.

deteriorate. Zanghi and Danny finally

As Zanghi notes, it is a super premi-

From 2016 up until last year, Zang-

decided to move the operation to the

um cigar with low production due to

hi’s products were distributed in the

Dominican Republic and to work with

the steps he takes with the tobacco,

U.S.A. by Drew Estate The arrange-

the Reyes family, whom Zanghi had

including steaming it with distilled wa-

ment gave Zanghi a chance to take a

known from his Indian Tabac days.

ter to remove mineral residue on the

break from his one-man operation. But

Initially, the duo bought one ma-

leaves. Considering it has avoided any

things didn’t feel right, so this year, he

chine and made about 5 million cigars.

price increases over the last six years,

went back out on his own with the back-

By 2008 they got serious and picked

Debonaire is not such a high priced ci-

ing of De Los Reyes—the Reyes fami-

up new machines and a few years later

gar when others are now over 18€ and

ly’s Dominican Republic company and

they were making nearly 300 million ci-

Debonaire is still at 11–14€ per stick.

factory. Now, Debonaire House directly

gars annually.

manages all facets of its U.S. business operations including distribution, sales,

into premium cigars. Sinclair owned

The Return of Indian Motorcycle… and an Indian (Motorcycle) Cigar

the trademark Debonaire and gave it

The Indian Motorcycle company had

is handled through Germany’s August

to Zanghi, saying “it fit him.” Being a

disappeared entirely by 2003, but re-

Schuster GmbH & Co. KG.

one-man show again with Debonaire—

emerged in 2008, albeit modestly. In

Zanghi released the first line exten-

the blender, the selector, the curing

2011, the company was sold to Polaris

sion to the Indian Motorcycle cigar brand,

guy—he took his time. The first Debo-

and since then things have taken off. A

the Indian Motorcycle Shade, as a Cana-

naire cigar debuted at the Procigar fes-

short while later, that Zanghi heard from

dian exclusive in May through Brigham

tival in Santiago, Dominican Republic in

friend Chris Topper, owner of Topper

1906, followed by its U.S. release in July

2012. Debonaire is a slow growth line.

Cigars, that Polaris was talking with a

and most recently InterTabac 2019 for

In 2010, Zanghi wanted to get back

and marketing. In Europe, distribution

Europe. It features a Connecticut seed

While Zanghi still owned Indian Tabac, he didn’t want to resurrect that brand, instead he wanted to use Indian Motorcycle’s trademark…Zanghi became one of the few true licensees—a worldwide exclusive regarding tobacco.

TPI 8

Q4 2019

wrapper grown in Ecuador, and is offered in Robusto (5 x 50) and Toro (6 x 52) formats. The new blend joins the line’s two original blends: Habano (Ecuadorian Habano wrapper) and Maduro (Connecti-

cut Broadleaf wrapper), both of which are offered in Robusto, Gordo, Toro, and Churchill formats. All three blends use Dominican binder and a blend of Central American fillers.

Zanghi says the licensing partnership with Indian has been so successful it now makes up about 75 percent of all of his sales. Since Indian is a worldwide brand, the cigars are now being sold in Europe, Asia, the U.S., and Canada.

Due to tobacco licensing requirements, the brand is only sold in a handful of Indian Motorcycle dealerships, so primarily it found at traditional cigar stores. But Zanghi says the relationship with Indian gives him extra support.

“What helps me is working with Indian directly where they will send people from the dealerships with motorcycles to the events. It brings so much legitimacy to the actual brand and I am not just a licensee I am the worldwide tobacco division of Indian you could say.

They are amazing people and very honest guys and very astute. I couldn’t ask for a better partnership.”

While cigar sales are continuing to grow for Indian Motorcycle, it is also helping Zanghi with his Debonaire line, opening new accounts and possibilities for that cigar. As for the future, Zanghi says next year he plans to add a whole line of Indian accessories—lighters,

> THIS IS NOW. Zanghi (above) returned to premium cigars in 2010 and developed the Debonaire brand, then created the Indian Motorcycle Cigar under an exclusive worldwide licensing agreement with Polaris, the current owner of Indian Motorcycle. Right: Single stick pouches. Below: Indian Motorcycle Shade, the brand’s third and newest blend.

humidors, and more. But he will never lose sight of the cigars. “I am working on it to be even better,” adds Zanghi.

“I’ve got some really great things that have happened and new partnerships with tobacco growers here in the D.R. and people in my company. The shade is going to do great. The whole line is growing exponentially. And we’re making better and better cigars so people don’t think it is a gimmick.”

TPI

Debonaire House, Santiago, Dominican Republic, Tel: +809-276-7441, Web: debonairehouse.com.

Tobacco Products International

TPI 9

{ Boutique Spotlight} > Dean Parsons, founder of Epic Cigars, continues as the creative force and public face of the brand under new ownership of Zander-Greg, Inc.

Parsons, the creative force behind Epic.

Parson continues as the public face and hands-on ambassador for the brand, as well as Zander-Greg’s other premium cigar brands in their respective markets, enlightening fans at a variety of cigar events in North America and Europe.

Parson’s return to the cigar spotlight started this summer in Las Vegas at the U.S.A.’s premium cigar convention, IPCPR, where Zander-Greg owner and founder Arthur Berberian showcased the newly acquired Epic brand at ZanderGreg’s own trade fair stand. Parsons greeted a steady stream of familiar faces happy to once again see the Epic brands on display. Since then, Parsons has also turned his attention to Europe, where Epic has enjoyed a growing presence. Parsons says the acquisition is helping Epic “elevate its game” including attending larger consumer events, building on all of Parsons’ hard work to date.

While Epic Cigars have been available in the U.S. since 2012 (and more recently in Canada) and have built a core following in Germany, InterTabac 2019 marked the company’s official relaunch in Germany of the two blends it is focusing on for Europe: the rich Epic Maduro and the

Dean Parsons, Epic Cigars

An Epic Return Epic Cigars has made surprisingly swift strides under founder Dean Parson’s dream of building an international cigar brand.

Following its recent purchase by Zander-Greg, Epic is eager to continue building its European base. » BY E. EDWARD HOYT III

E

spicy Epic Corojo.

Both cigars are full-flavored and medium-to-full-bodied, Parsons explains, although the maduro “a little less so.“ They are the original two blends that Parsons first debuted when he launched the brand. Both feature a blend of Dominican and Nicaraguan fillers. The Corojo has a Dominican binder and Ecuadorian Corojo wrapper and is available in robusto,

pic Cigars marked its official re-

on a year-long hiatus as the company un-

double corona, and gordo formats, while

launch in the German market at

derwent a restructuring. Earlier this year,

the Maduro has a Cameroon binder and

the Kleinlagel stand at the 2019

Pasadena, California-based Zander-Greg

an Ariparaca wrapper from Brazil. It’s of-

InterTabac Trade Fair in Dortmund in

Distributors, owner of Nat Cicco Cigars,

fered in lancero, robusto, double corona,

September. The Dominican-made brand,

purchased Epic and formed a new part-

and gordo formats.

now under new ownership, had been

nership with Epic Cigars founder Dean

TPI 10

Q4 2019

Considering the company’s youth,

Parsons felt extremely fortunate in 2015 to secure Canadian distribution through Joe Bondi’s Alec Bradley Canada, and more recently to partner with Bruchsal-based Klaus Kleinlagel GmbH for distribution in Germany and other key markets. The partnerships have quickly opened up access to many new retail accounts, the first step in fulfilling Parson’s vision of building an international brand.

Following this year’s InterTabac fair, Parsons took Epic Cigars on tour in Germany with Klaus Kleinlagel Sales Manager Thomas Geissler, hosting lounge events in Bisingen, Oberursel, Frankfurt, Würzburg, Saarland, Wiehl, and culminating at his largest sold-out event at Cigarworld in Düsseldorf. More European events will follow in 2020.

Pursing Evolving Interests Having enjoyed cigars since his former days as a police officer in Canada, Parsons unwittingly began paving his entry into the cigar industry when he started traveling to the Dominican Republic in 2005 from the Turks and Caicos Islands,

> Top: Epic Maduro. Above: Epic Corojo. Inset: The innovative limited edition Project E San Andres featuring a Mexican San Andres wrapper with a natural leaf tobacco band emblazoned with the Epic “E” logo.

an idyllic travel destination south east

Parsons spent several years patiently

ship with Zander-Greg is hardly unusu-

of the Bahamas where he was working

developing his first blends with Villamil,

al, allowing him to focus on the areas

in real estate. Fine cigars were starkly

culminating with the release in 2012 of his

he loves the most—blending and brand

non-existent in the islands, though, and

debut cigar, the spicy Epic Corojo, followed

building—while tapping the strong sales

as Parson deepened his appreciation

quickly by the rich Epic Maduro Reserva.

and distribution infrastructure in the U.S.

and knowledge of the cigar making pro-

In 2012, Parsons decided to turn his

of the brand’s new owner. Epic fans need

cess visiting Dominican factories and

side job in cigars into a full-time job, and

not worry about their beloved blends:

farms, an opportunity came to light.

has been working tirelessly ever since to

Parsons assures that all of the existing

build the brand and expand the blends.

core lines from Epic Cigars will remain

Working with master blender Rolando Villamil in Santiago, Parsons first

Epic Cigars exhibited at its first IPCPR

the same. There are some additions

marketed a Turks and Caicos-branded

Trade Show in Las Vegas in July 2014,

nearly ready for release, however, both

cigar called Turks Select to the terri-

rolling out its third line, the medium-bod-

from Parson’s existing factory partner in

tory’s resorts and hotels. But by 2009

ied Epic Habano, which pairs the natural

the Dominican Republic, as well as a new

the booming real estate market there

sweetness of Ecuador Habano wrapper

partner in Nicaragua, with some details

had soured, and Parsons had taken a

with a spicy-sweet Cameroon binder.

forthcoming by the end of the year and

new job in the Dominican Republic.

Several additional blends have followed,

launches slated for early 2020.

Living in “cigar country” only deep-

but for now Parsons is focusing on the

ened his fascination with the art of

Maduro and Corojo for European distri-

Epic Cigars, Web: epiccigars.com, Klaus

blending, and in 2010 he was inspired

bution, which also includes The Nether-

Kleinlagel, Friedrich-Silcher-Str.4, D-76646

to trademark the Epic cigar brand for

lands and Switzerland.

Bruchsal, Germany, Tel: +49 7257 924

international sales, and founded his own company, Epic Cigars LLC.

Change has been a constant theme in Parsons’ career, so his new partner-

TPI

99 98, Email: klaus@kleinlagel.com, Web: kleinlagel.com.

Tobacco Products International

TPI 11

{Brand News} Maya Selva Cigars Unveils Three New Novelties for 2020 Maya Selva, founder of Maya Selva Cigars, unveiled three new cigars for 2020 at the 2019 InterTabac trade fair in Dortmund, Germany, in September.

For the third year in a row, the company is celebrating the Chinese New Year with a new limited edition, Year of the Rat. Totally hand-made with the best tobacco from the house, representing the traditional terroirs of Honduras and Nicaragua, this new blend has the “elegant balance characteristic” of the Flor de Selva brand. Its notes of vanilla with hints of toasted almonds “are bound to please the most discerning of palates.”

Honduras—the land of coffee and tobacco— also brings the newest member of the classic Villa Zamorano collection, the

Oliva Set to Launch Serie V Melanio Edición Limitada 2019 Diadema

Soberano. This full bodied, rich and expres-

The Oliva Serie V Melanio Edición

sive puro embodies the flavorful tobacco of the

Limitada 2019 Diadema, the third

renowned Jamastrán Valley in Honduras. It is a

limited edition of the Serie V Melanio,

creamy smoke with a slight wood note aroma, “rich

was unveiled at the InterTabac fair

in taste, not in price,” says the manufacturer.

in Dortmund, Germany. This release

Finally, Maya Selva Cigars has officially

features the same blend as the regular

launched its new Villa

Melanios but are not box pressed,

Zamorano Reserva

left round with a tapered foot. The

Personita in Germany. This small hand-made

Diadema measures 6 3/4 inches by 48

Honduran cigar is rolled with premium tobacco and

ring gauge, and are packaged in deluxe

will appeal to the daily smoker who “enjoys taking a

boxes of 10. Only about 2,500 boxes

short break in the company of a solid and consistently

are slated for release.

good smoke.” The blend is “refined” with the “scent

Oliva Cigars, Miami, Florida, USA,

of toast and cedary aromas with a very gentle peppery taste.” The

Web: olivacigars, distributed by

Personita is made of entirely Honduran long-filler and has been crafted with

J. Cortès Cigars, Zwevegem-Moen,

“the utmost skill to create this moment of indulgence,” says the company.

Belgium, Tel: +32 56 75 94 00, Email

Maya Selva Cigares, Paris, France, Tel: +33(0) 40 15 0565, Web: mayaselvacigars.com.

info@jcortes.com, Web: jcortes.com.

Principle Cigars Releases Angelique and Vintage-Style Tin Advertising Signs Principle Cigars has created a series of ten advertising signs, each in the style of a different place and time period. The signs have been produced on tin and were released in October. “Today, we are bombarded with advertising,” explains company founder Darren Cioffi, “yet the traditional advertising sign—an artistic but innocent and simple announcement of a product—is a lost art.”

The tenth and final sign in the series also features the company’s newest cigar release: Angelique, a “clean, high-quality Connecticut smoke with a naturally sweetened tip,” says Cioffi. “The hand-drawn Angelique logo is inspired by the many spectaular hand-drawn department store logos from the 1960s. Department stores have just about all switched to modern, clean designs, leaving this style lost to the world and making it something we felt was important to resurrect.”

Principle Cigars, Nashville, Tenn., USA, Web: principlecigars.com; Kleinlagel, Bruchsal-Obergrombach. Germany Web: Kleinlagel.com.

TPI 12

Q4 2019

Tabacalera S.A. Releases VegaFina 1998 Honoring the year in which the VegaFina brand was created, the new VegaFina 1998 from Tabacalera S.A. features tobaccos that have all been aged for a minimum of three years, including filler tobaccos from Nicaragua, the Dominican Republic, and Colombia; an Indonesian Java binder; and a

Bold Belgian Makla Chewing Tobacco

Cuban-seed Ecuadorian-grown wrap-

Makla is a 100-year-old brand of smoke-

flavors with notes of nuts, white pepper,

less tobacco created from rustica (wild)

vanilla, coffee, and molasses.

tobacco using traditional methods. It

per. The blend is described as mild-medium, dominated by wood and roasted

The new line, which is initially being targeted

tucks snuggly under the lip, has a

for European markets, is crafted at the Tabacalera de

“milky sweet” flavor that’s not acidic,

García factory in the Dominican Republic and debuts

and is offered in Makla Ifrikia, Makla El

in three vitolas featuring a secondary ring identifying

Kantara, Makla Africaine Bentchikou,

the 1998 blend: VF 50 (50 x 115mm), VF 52 (52 x

and Makla Bouhlel Bentchicou Rouge

135mm), and VF 54 (54 x 155mm). The cigars are

varieties in bags or plastic tins.

presented in 10-count Cuban dress boxes.

Sifaco Group SA, Manage, Belgium.

Tabacalera S.A./Imperial Brands,

Web: maklaworld.com.

Madrid, Spain, Tel: +34 91 360 9000.

Tobacco Products International

TPI 13

{Showcase} Xikar Adds New Enso Dual-Blade Cutter In Japanese culture, the enso is a minimalist circle drawn in one stroke at a moment of clarity of the mind, symbolizing strength and elegance.

It is also the spiritual inspiration for Xikar’s new Enso cigar cutter, which features

is 2.5 inches in diameter and .5 inches thick—the same dimensions as Xikar’s

Meerschaum Pipes from New World Luxury Brands

two-handle XO cutter. A 68 ring gauge cigar is able to fit through the inside of

New World Luxury Brands crafts smok-

the cutter, which will cut up to 72 ring gauge cigar. Enso is available in a choice

ing pipes offering authentic craftsman-

of six finishes: black, silver, red, blue, neon green, and neon orange.

ship—genuine, hand-whittled “pieces

Xikar, Inc., Weston, Fla., USA, Web: qualityimporters.com;

of art” featuring “gorgeous textures and

Wolfertz GmbH, Solingen, Germany, Web: wolfertz-gmbh-com.

ridges” in unique designs.

a synchronized dual-blade system where the movement of one handle actuates both finely-honed blades to open and close. The Enso

In addition to a traditional briar wood range, New World offers dozens of different styles of meerschaum pipes, each made by leading Turkish hand carvers from real block meerschaum.

Shown above is a beautifully pat-

New Scissor-Style Cigar Cutter Collections from Elie Bleu

terned ball-style pipe decorated with

Elie Bleu is offering two new models

Calabash, Apple, Cherry Wood, Danish

of scissor-type cigar cutters, both

Bent, Rhodesian, and Freehands. The

crafted with stainless steel bodies and

company also offers true one-of-a-kind

featuring Japanese tempered surgical

special editions, one-off pipes in tradi-

stainless steel blades that can cut up to a

tional and non-traditional themes, such

60 ring gauge cigar.

as the Native American (below).

The EBC-2 Round Cigar Cutter Collection

sterling silver spigot stem and black acrylic stem. Other shapes include

New World Luxury Brands PTE Ltd.,

(right) folds closed into a perfect 2-3/4-inch diameter

Singapore,Tel: +90-212-227-8725,

circle and is offered in polished stainless steel with gold

Email: info@newworldpipescigars.com ,

button; polished gold stainless steel with gold button; and polished stainless

Web: newworldpipescigars.com.

steel and button with etched pinstripe.

The EBC-3 Cigar Cutter Collection (left) features unique etched marquetry handles in a choice of three different handle finishes: polished stainless steel, black, or gold.

Elie Bleu S.A., Gennevilliers France, Tel:+33 147 9964-10 Web: eliebleu.fr.

TPI 14

Q4 2019