Author: Staff Writer

PMI Expands IQOS Iluma in Middle East Region

Philip Morris International has launched IQOS Iluma in Saudi Arabia, Kuwait and Bahrain, with a goal of creating a smoke-free future in the Gulf Cooperation Council region, according to the Saudi Gazette.
“Adult smokers may be unaware of the choices they are making, largely due to the lack of information and knowledge on products that bring them harm, versus scientifically backed products that reduce the likelihood of smoking-related disease,” said Tarkan Demirbas, area vice president of the Middle East at Philip Morris Management Services (Middle East) Limited. “At PMI, we are invested in providing existing adult smokers with better alternatives through harm reduction innovations, which can help them take a step back from cigarettes toward better alternatives.”
“Smoking-related diseases today call for a pragmatic solution that places consumers at the forefront while moving away from cigarettes,” said Saim Yasin, director of marketing and digital at PMMS. “IQOS Iluma is our latest innovation in tobacco-heating systems that will accelerate our goal toward a smoke-free future. Through a growing portfolio of smoke-free alternatives, we are reaffirming our commitment to create realistic, society-wide change that can reimagine the world we are living in—without cigarettes.”
The IQOS Iluma series offers three devices: IQOS Iluma Prime, IQOS Iluma and IQOS Iluma One. All the devices use new induction heating technology but offer different designs.
November 17, 2023
Postponed COP10 Expected to Prioritize ENDS Rules

Image: Tobacco Reporter archive
The regulation of new and emerging e-cigarette, heated-tobacco and nicotine products will be one of the central topics of discussion at the COP10-MOP3 international tobacco control conferences next year, said Adriana Blanco, head of the World Health Organization Framework Convention on Tobacco Control (FCTC), in a virtual press conference on Nov. 14, reported ECigIntelligence.
Speaking from the WHO headquarters in Geneva, Switzerland, Blanco said that proposals to create more stringent rules and health guidelines to govern new tobacco and nicotine product use will be prioritized at the COP10 (10th Conference of the Parties to the WHO FCTC) and the MOP3 (third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products), which will now take place in Panama next year.
Last week, the WHO postponed COP10 to 2024 due to security issues for attendees and no new date has been announced.
November 16, 2023
Hyla Files to Market Vegan Vape Systems in EU

Endexx Corp.’s Hyla division is filing an EU Tobacco Products Directive (TPD) application for its vegan formulated e-cigarette products.
“Our proprietary botanical ingredient profile, flavoring and vegan sensitive formulations created in the United States will carry through in Hyla’s nicotine-enhanced products. These factors are what differentiate Hyla’s product quality,” stated Nick Mehdi, CEO of Hyla. “Hyla’s distribution partners in Europe are the top tobacco and e-cigarette distributors in Europe and have directly requested this product expansion due to ongoing demand and need for compliance leadership provided by Hyla.”
The TPD registration accelerates Hyla’s product placement into Austria, Belgium, the Czech Republic, France, Germany, Greece, Italy, Slovakia, Spain, Switzerland and the United Kingdom. Several of the listed countries have already reviewed Hyla’s non-nicotine products. The TPD registration opens the European market to all Hyla’s products.
“Endexx’s investment into Hyla has generated early success by providing non-nicotine electronic devices into the international markets. The Hyla brand represents high-quality, vegan and natural products, with attention to all regulations and compliance required to conduct commerce in each country,” said Todd Davis, CEO of Endexx. “This registration process helps secure the success of our long-term target of being a dominant player in the international age-restricted CPG markets.”
November 15, 2023
Ispire Technology Sees Jump in Revenue and Profits

Photo: Freedomz
Ispire Technology reported revenue of $42.9 million and gross profit of $6.9 million in the quarter that ended Sept. 30, reflecting growth of 59.1 percent and 43.7 percent, respectively, over the comparable 2022 quarter.
Revenue from cannabis vaping products jumped 116.8 percent to $17.3 million, and revenue from tobacco vaping products was up 34.8 percent to $25.5 million.
Ispire co-CEO Michael Wang attributed the growth to the company’s expansion in the United States and the reception there of its most recent product, Ispire One. “Our business strategy has clearly manifested as we continue to redefine the vaping experience, consistently delivering high-quality and groundbreaking products that align with customer preferences,” he said.
“We remain confident in our ability to maintain our position as the leading premier precision dosing technology company as we’ve not only secured our position in existing markets but have also made inroads into new geographies, adapting swiftly to increased market demands. The establishment of a new manufacturing facility in Malaysia marks a strategic step into the Southeast Asian market, signaling our readiness for scalable operations.”
November 14, 2023
Juul Labs Raises Estimated $1.3 Billion in Funding

Credit: OleksandrO
Juul Labs has raised an estimated $1.3 billion in funding, reports Reuters.
The company has been seeking financing alternatives in a bid to protect its business as it deals with lawsuits related to the marketing of its e-cigarettes.
Earlier this year, Juul announced a company restructuring aimed at reducing operating costs and positioning the company to continue to advance its mission during a period of regulatory and marketplace uncertainty.
In April, the company agreed to pay $462 million over eight years to settle claims by six U.S. states, along with the District of Columbia, that it unlawfully marketed its addictive products to minors.
In November 2022, the company secured funding from some of its early investors to help keep it afloat while cutting about 400 jobs and reducing its operating budget.
Altria Group exited its stake in Juul earlier this year, days before announcing its purchase of Njoy Holdings for about $2.8 billion.
November 14, 2023
Kaival Appoints Hopkins as Executive Chairman

Image: Monster-Ztudio
Kaival Brands Innovations Group has expanded the role of Barry Hopkins, chairman of the board, to the new position of executive chairman. In this role, Hopkins will serve as Kaival Brands’ principal executive officer. Current President and CEO Eric Mosser will continue to manage day-to-day operations of the company.
Hopkins joined Kaival Brands as chairman of the board in March 2023. He is a 40-year tobacco industry veteran with deep operational experience and industry contacts. With his expanded responsibilities, Hopkins will play a more active role in the strategic direction and oversight of the company, with a focus on accelerating revenue growth, improving operational efficiencies and executing on Kaival Brands’ strategic initiatives.
“Since I joined Kaival Brands in March, I have become even more energized by the opportunities for our company and look forward to working with Eric and our excellent senior leadership team to refine our strategic business plan and reignite growth,” said Hopkins in a statement. “I aim to foster a culture of performance and accountability and to establish clear decision-making processes and strong communication, which are essential for moving our promising business forward.”
Hopkins spent most of his decades-long career primarily in senior sales and marketing roles for Turning Point Brands and Altria.
November 14, 2023
RLX Technology Report Shows Revenue ‘Challenges’

Photo: RLX Technology
RLX Technology reported net revenues of RMB428.1 million ($58.7 million) in the third quarter of 2023, compared with RMB1.04 billion in the same period of 2022. Gross margin was 24.7 percent in the third quarter of 2023, compared with 50 percent in the comparable 2022 quarter. GAAP net income was RMB172.7 million, down from RMB505.2 million in the prior-year period.
“The end of the third quarter of 2023 marked one year since the new regulatory framework for the e-vapor industry came into effect,” said Ying (Kate) Wang, co-founder, chairperson and CEO of RLX Technology, in a statement.
“As a legitimate industry participant, we have remained dedicated to developing our product portfolio to provide adult smokers with compliant, superior-quality products. While we have made some progress with our recovery, we are still facing external challenges, especially the impact of illegal products. We recognize that many users are still unaware of these new regulations, such as flavor restrictions, which has slowed their adoption of the new national standard products.
“To address these near-term obstacles, we will forge ahead with our core strategy: providing a wide variety of quality, compliant products across an extensive range of price points to meet users’ various needs. Meanwhile, we are making efforts to enhance users’ understanding of the new regulations and collaborating with regulators to combat illegal products and create a healthy and orderly market. As a trusted e-vapor brand for adult smokers, we believe that more users will gradually switch to our products as increased awareness of the new regulations and the dangers of substandard, illegal products rises.”
“In the third quarter of 2023, we continued to face significant headwinds due to competition from illegal products,” added RLX Technology Chief Financial Officer Chao Lu. “Against this challenging backdrop, we resolutely executed our strategy and focused on improving profitability, which continues to be our top priority.
“Our strategic cost optimization initiatives have begun to demonstrate positive outcomes, including a consistent reduction in our non-GAAP operating loss and signs of recovery in our non-GAAP net profit margin. Notably, we achieved a second consecutive quarter of positive operating cash flow this quarter, underscoring our business’ resilience in the post-regulatory era. Looking forward, we will remain committed to enhancing our financial performance and delivering sustainable value to our shareholders.”

November 13, 2023
Organigram Holdings Searching for Next CFO

Credit: Tasha Tuvango
Derrick West will transition away from his role as chief financial officer at Organigram Holdings to focus on recovery following surgery later this month.
Paolo De Luca, current chief strategy officer, has been appointed interim CFO while the company completes a search for a new permanent CFO. De Luca previously served as the company’s CFO between 2017 and 2020.
“Derrick has left a legacy of stabilizing our financial processes along with the implementation of our ERP and has supported the company through a period of high growth including the acquisitions of our Winnipeg and Lac-Supérieur facilities,” said Organigram CEO Beena Goldenberg in a statement. “We are grateful for his contributions during his time on the board beginning in 2017 and since becoming CFO in 2020 and we wish him well.”
Organigram Holdings is the parent company of Organigram, a licensed producer of cannabis, cannabis-derived products and cannabis infused edibles in Canada.
Recently British American Tobacco increased its equity position in Organigram from 19 percent to 45 percent.
November 13, 2023
U.K. Considering New Tax on Vaping Products

Credit: enterlinedesign
U.K. ministers are considering a new vapor tax as part of the move to create a “smoke-free generation” that would also include a gradual total ban on smoking, according to The Guardian.
Documents that were published along with Rishi Sunak’s first king’s speech show that an eight-week consultation on smoking and vaping is planned and will “explore a new duty” on vapor products.
There is an “important balance” that needs to be met to make sure cigarettes are taxed higher than vapes, The Guardian noted, citing Downing Street.
Ministers plan to introduce the new tobacco and vapes bill next month. It will include tighter restrictions on vaping and phase out the sale of cigarettes, making it so that children currently aged 14 or younger will never legally be able to purchase the products.
November 10, 2023
Nic Alternatives Boost Cessation: Tholos Foundation
The Tholos Foundation, in partnership with Japan-based Pacific Alliance Institute and Sweden-based consulting firm Scantech Strategy Advisors, has released a policy paper, Safer Nicotine Works, on how Sweden and Japan have successfully reduced smoking rates by introducing safer alternative nicotine products.
Safer Nicotine Works investigates oral nicotine and heated tobacco’s effects on smoking rates in Sweden and Japan. It follows Vaping Works, which studied four countries’ vaping experiences. The latter found that nations adopting vaping, like the United Kingdom, France, Canada, and New Zealand, experienced smoking rate reductions at double the global average.
In Japan, the introduction of heated tobacco products has remarkably reduced male smoking rates below 30 percent for the first time, reversing previous stagnation.
Sweden, with a smoking rate of 5.6 percent ¹ is poised to be “smoke-free” within the year. The recent decline in smoking is attributed to the rise of nicotine pouches introduced in 2019.

Tholos Foundation’s research indicates consumers in both countries led the shift to safer alternatives. Policymakers’ key role was to ensure these alternatives were accessible and viable. Data confirms that safer nicotine significantly aids smoking cessation. With safer nicotine products like vaping, heated tobacco, nicotine pouches, and snus, smoking rates are dropping rapidly.
“Safer nicotine is, quite literally, saving lives around the world,” said Tholos Foundation Vice President Lorenzo Montanari in a statement. “The experience of Sweden and Japan, just as in the U.K., Canada, New Zealand and France, proves that when people have access to safer products, they choose them in huge numbers. We now have the tools we need to fight harmful high smoking rates: governments around the world must now support their citizens to make a better choice.”
According to the Tholos Foundation Sweden and Japan’s success in lowering smoking rates highlights the efficacy of comprehensive tobacco control strategies. “They have regulated alternative nicotine products, prioritizing public health,” the organization wrote in a press note. “Sweden and Japan’s experiences provide key lessons for nations aiming to decrease smoking and encourage smoke-free alternatives. By enabling access to safer alternative nicotine products and implementing appropriate regulations, countries significantly improve public health outcomes and address smoking.”

November 9, 2023