Honeywell to help tobacco companies
On January 22, Honeywell (HON) announced that its track-and-trace product had been nominated by tobacco manufacturers to help them find suitable suppliers who are part of the tobacco supply chain and comply with the EU Tobacco Products Directive II (or TPD). The EU directive requires all the economic operators across the tobacco industry including distributors, freight forwarders, and logistics providers to track the chain of custody of tobacco products down to the individual pack from manufacturing to point of sale. The deadline to comply with the directive is May 20, 2019.
Honeywell’s track-and-trace solution helps companies track individual products with a unique identifier code. Taylor Smith, Honeywell’s chief marketing officer for the productivity products business, said, “For many companies supporting the tobacco supply chain, TPD II compliance will have a significant impact on business operations. Honeywell has developed all aspects of the solution to meet the TPD II requirements– hardware, software and support services – giving an ability to support the solution more effectively for customers not wanting to deal with multiple companies. Economic operators can also benefit from local support from our vast network of thousands of resellers throughout Europe.”
Honeywell’s stock performance
So far in 2019, Honeywell has gained 6.9%. Honeywell has outperformed the S&P 500 (SPY), which has gained 5.9%. Peers General Electric (GE), United Technologies (UTX), and Textron (TXT) have gained 15.3%, 5.4%, and 6.1%, respectively, as of January 22.