Police: Menthol Ban Will ‘Create Crime’

Industry InsightInnovation
Jun.28.2022

The U.S. Food and Drug Administration’s proposed ban on menthol cigarettes could have unintended consequences, according to leading law enforcement officers.

 

Among other problems, it could boost the illicit cigarette market. In 2020, of the $203 billion cigarettes sold in the United States, 37 percent were menthol. “Transitioning from a regulated market to an illicit one will lead to about $30 billion of an illicit market,” said Major Neill Franklin, former executive director of the Law Enforcement Action Partnership, in a statement published by Menthol is Not a Crime.

 

If the FDA bans menthol cigarettes, this will “create crime,” and you will get “homemade menthol cigarettes,” said retired Bureau of Alcohol, Tobacco, Firearms and Explosives agent John Rotunno.

 

Charles Giblin from the Center for the Advancement of Public Safety and Security stated, “Despite the good intentions … the ban will have unintended consequences. Cross-border smuggling will fill the gap of the prohibition.”

 

Others highlighted the racist implications of the ban since more than 80 percent of African Americans who smoke prefer menthol cigarettes.

 

“Bans do not work. During the war on drugs, more Black and Brown people went to jail than in all of slavery. About 90 percent of people targeted by stop-and-frisk were Black and Brown people,” according to John Dixon III, former police chief of Petersburg, Virginia, and former president of the National Organization of Black Law Enforcement Executives.

 

“We are not promoting people to smoke,” but “we don’t want another situation like that of Eric Garner [Garner was killed by New York Police Department officers after they approached him on suspicion of selling single cigarettes],” said Charles Billups, founding member of the NCJP, retired law enforcement officer and chairperson of the New York State Grand Council of Guardians.

 

Franklin expanded, “An illicit market is even more problematic for the Black community. Law enforcement will have no option other than to aggressively enforce smuggling and smoking bans … In an effort to identify smugglers, police will ‘creatively interact’ with citizens for minor crimes, like jaywalking, loitering, trespassing, traffic violations—using those crimes for leverage for information on their tobacco sources. This is the same tactic we use for locating guns and drugs.”

IQOS Enters Kantar BrandZ Global Top 100 for First Time, Valued at $36.6 Billion and Ranked No. 74
IQOS Enters Kantar BrandZ Global Top 100 for First Time, Valued at $36.6 Billion and Ranked No. 74
Philip Morris International’s IQOS has entered the Kantar BrandZ Top 100 Most Valuable Global Brands for the first time, ranking No. 74 with a brand value of $36.634 billion and becoming one of only three newcomers to the 2026 ranking. Kantar said the combined value of the Global Top 100 reached $13.1 trillion, up 22% year on year, while the threshold for entry rose to a record high. PMI says IQOS has more than 35 million users worldwide and surpassed $10 billion in annual net revenues within a decade of launch.
Sep.03
JTI Proposes 25-Cent Irish Cigarette Tax Increase, Says It Could Raise €45 Million
JTI Proposes 25-Cent Irish Cigarette Tax Increase, Says It Could Raise €45 Million
Japan Tobacco International's Irish business has proposed a €0.25 tax increase on a pack of 20 cigarettes in its pre-Budget 2027 submission, below the €0.50-or-more increases typically imposed in recent Irish budgets. JTI says the proposal could generate around €45 million in additional Exchequer revenue while limiting further movement toward illicit and non-Irish-tax-paid tobacco. Revenue's existing estimate for a comparable €0.25 increase, including pro-rata rises on other tobacco products, is about €18 million for a full year.
JTI
Sep.18 by 2Firsts Perspectives
New York’s 75% Wholesale Tax on Nicotine Pouches Takes Effect Sept. 1, With Aug. 31 Inventory Subject to Floor Tax
New York’s 75% Wholesale Tax on Nicotine Pouches Takes Effect Sept. 1, With Aug. 31 Inventory Subject to Floor Tax
New York State will extend its tobacco products tax to “alternative nicotine products,” including tobacco-free nicotine pouches, from September 1, 2026, at a rate of 75% of the wholesale price. Distributors, wholesalers and retailers must also inventory products held as of 11:59 p.m. on August 31 and pay a floor tax. Vapor products are excluded from the new category and remain subject to New York's separate 20% supplemental sales tax on the retail price.
Aug.26
Inside Nicotine-Pouch M&A Through Imperial's Yoik Deal: Latham, KPMG, PwC, Goldman Sachs and Morgan Stanley Form the Adviser Lineup
Inside Nicotine-Pouch M&A Through Imperial's Yoik Deal: Latham, KPMG, PwC, Goldman Sachs and Morgan Stanley Form the Adviser Lineup
Imperial Brands' acquisition of Swedish Helwit owner Yoik Group AB has highlighted the professional-services firms supporting cross-border oral nicotine M&A. Latham & Watkins and KPMG advised Imperial, while PwC and TM & Partners advised Yoik. KPMG also appeared on Imperial's acquisition of Black Buffalo earlier in 2026, while PwC played an extensive role in KT&G's acquisition of Swedish nicotine-pouch company Another Snus Factory. Imperial's public disclosures put the global modern oral nicotine delivery market at approximately £8.8 billion in retail sales and 23.5 billion pouches in 2024
Sep.20
Special Report | How Capital Is Reassessing the Global Tobacco and Modern Nicotine Industry: Lessons from a New York Forum
Special Report | How Capital Is Reassessing the Global Tobacco and Modern Nicotine Industry: Lessons from a New York Forum
Capital is reassessing the global tobacco and modern nicotine industry as heated tobacco, vaping and nicotine pouches reshape demand, profitability and regulation. At the 2026 New Approaches Summit in New York, investors and analysts examined whether smoke-free growth can sustain earnings, how regulation shapes startup value, and whether shareholder engagement can be more effective than divestment. The debate points to a broader shift: tobacco transition is increasingly becoming a capital-allocation, governance and valuation question.
Capital Markets
Oct.05
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
China Tobacco International (HK) reported a 26.9% revenue decline in H1 2026, while gross profit fell only 9.5%, revealing sharp divergence across its businesses. Tobacco leaf imports contracted, while leaf exports and Brazil operations expanded strongly. Cigarette exports faced China duty-free market transition, and new tobacco products remained small. Meanwhile, CTIHK continues to strengthen its role as an investment and financing platform, though major external deals have yet to emerge. 2Firsts examines what these shifts mean for its next growth drivers.
Capital Markets
Aug.24