Cowen's Cigarette & Cannabis Circular
Robert Pomplun
servingalcohol.com
Source: Cowen
July 7, 2017

The Cowen Insight
Our weekly Cowen Cigarette & Cannabis Circular highlights important news in the tobacco and cannabis industry for the week ending 7/7/2017.

Cannabis
.           A lawyer sues Florida for banning smoking in its medical cannabis law
.           The Massachusetts panel set up to finalize rules for the adult-use cannabis market is put on hold
.           Nevada begins adult-use sales
.           Greece announces plans to legalize medical cannabis
.           Denver finalizes its on-site cannabis use rules
.           Delaware passes a bill to set up a committee to look into legalizing adult-use cannabis

Tobacco

Taxes/Price
.           Delaware increases the tax on cigarettes in its budget. Considering ballot initiatives and bills proposed or within governors' budgets, we estimate the weighted average SET would increase 18% as of Jan. 1, 2018, compared to July 1, 2017 rates, if all are passed (see appendix)
.           France announces plans to increase cigarette taxes
.           Hungary increases cigarette taxes, while Turkey says it will not increase cigarette taxes in the back-half of the year

Regulation
.           Oregon's House passes a bill to raise the legal tobacco purchasing age to 21
.           Tokyo's Governor aims to implement a city smoking ban ahead of the 2020 Olympics

Company Specific
.           PM expands production of iQos HeatSticks in Switzerland
.           PM says iQos has achieved ~70% conversion rates in the U.K.
.           BAT invests to expand production at its Romanian facility

Industry
.           KPMG releases its 2016 illicit tobacco report in the EU, finding illicit tobacco made up 8.8% of consumption in 2016, down from 9.8% in 2015



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