Regulatory News

The National Health Surveillance Agency (ANVISA) opened two public consultations to gather opinions from different sectors of society on the use of additives and flavorings that change the taste of cigarettes - the most used flavor being mint. Members of the anti-smoking movement in favor of prohibiting the practice, claim that the consumption of a product with a better taste is aimed making it more difficult to break the habit. Tobacco industry representatives say that the analysis has no scientific basis and warn that banning would have a negative impact.

In an interview with the economics magazine, Exame, Leonardo Senra, Financial and Investor Relations Director for Souza Cruz, the largest cigarette factory in Brazil, said companies are in favor regulating the industry. "But as long as it is a regulation that tries to balance the interest of stakeholders (legitimately interested sectors)," he pointed out. According to him, banning mentholated cigarettes would affect the tobacco production chain, affecting more than 50,000 farmers.

The manufacturers decided to invest in mentholated cigarettes - more expensive - as a way to compensate for the stagnate sales and the growth of the illegal market.

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