From the Associate editor
It’s hard to believe that there’s less than two months left to the year. Seems the old adage isn’t always true: time flies whetheror not you’re having fun. To say that 2020 has been rocky wouldbe an understatement, even for an industry such as ours whichhas faced more than its fair share of challenges and disruptionsover the years, even without a global pandemic.
Nattira Medvedeva
Nattira Medvedeva, Associate Editor
This year we’ve been through imposed lockdowns which havehad both an economic and social impact, changing the worldas we knew it. These lockdowns along with government banson tobacco led to an increase in illicit trade. Lockdowns andtravel restrictions led to the cancellation or postponement ofall industry trade shows, such as InterTabac and InterSupply2020 (next show: Sept. 16-18, 2021). The list of the manychallenges 2020 presented goes on, as we all know, so let’snot dwell on this.
It hasn’t been all doom and gloom. The industry shows once again how resilient it can be,moving forward with the development of new products and markets despite challenges.Philip Morris International reported better than expected Q3 results, earning US$2.31 billionor a 28.7% increase on the same period last year. KT&G also posted a 10.7% increase inconsolidated sales in this year’s third quarter, bringing in US$1.31 billion, as well as a 13.6%increase in operating profit, setting it well on its way to achieving its target of becoming theworld’s fourth largest tobacco maker by 2025. PMI and KT&G also started a strategic collaborationthis year, where PMI will handle sales of KT&G’s smokeless products outside ofKorea. British American Tobacco pushes forward with its modern oral nicotine business,recently acquiring Dryft Sciences LLC’s nicotine pouch product assets. This expands BAT’smodern oral nicotine portfolio from 4 to 28 product variants which are to be sold under BAT’sVELO brand. These are but a few positive, uplifting examples.
One of the significant happenings this year was the US FDA’s PMTA application submissiondeadline for new tobacco products like e-cigarettes and vapes, with premium cigars effectivelygiven a free pass for the time being from having to submit a PMTA application just onemonth before the deadline. Previously, the PMTA application and subsequent FDA approvalprocess signaled the end for smaller manufacturers. FDA received and accepted quite anumber of PMTAs from smaller manufacturers, in effect allowing their products to remainon the market for at least another year or until the agency delivers its final decision. FDAactually shows signs of willingness to work with applicants, acknowledging that it is unlikelyto be able to review all PMTA applications within the one year period. And, with a new USadministration taking over next year, who knows what other changes may come?
After the ups and downs that we’ve gone through in 2020, it seems that we might actuallybe ending the year on a slightly more positive note, and dare we say, even hope for a better2021 as the world goes back to business again, albeit in modified “new normal” ways. Einsteinonce said, “Life is like riding a bicycle. To keep your balance, you must keep moving.”And that’s exactly what the industry has done and continues to do – keep moving.