The U.S. Food and Drug Administration Center for Tobacco Products (CTP) will host a virtual meeting June 11 from 13:00 to 15:30 Eastern Daylight Time. The meeting will discuss the scientific review of tobacco marketing applications received by Sept. 9, 2020. It will focus on the application intake process, review progress and allocation of review resources. There will be time allotted for audience questions as well.
Matt Holman
The meeting will feature a presentation from CTP Office of Science Director Matt Holman and include a question-and-answer session. Other Office of Science staff participating in the meeting include Todd L. Cecil, deputy director for regulatory management; Crystal Allard, director for the division of regulatory science and informatics; Joanna C. Randazzo, D.C., acting chief for the science policy branch; and Cristi Stark, director of the division of regulatory project management.
The CTP Office of Science is responsible for identifying, developing and enhancing the science related to tobacco products, their use, and the resulting morbidity and mortality so that regulatory decisions will have the greatest impact on improving public health.
The Office of Science provides the scientific support for regulations and guidance, reviews tobacco product applications, evaluates the knowledge basis for regulatory decisions and carries out research to fill the gaps in scientific knowledge related to tobacco product regulation.
British American Tobacco (BAT) will invest HRK200 million ($32.07 million) to produce heated-tobacco products (HTPs) at its factory in Kanfanar, Croatia, reports Total Croatia News.
The multinational revealed its plans during a May 12 visit to its facility by Prime Minister Andrej Plenkovic.
“By expanding production in Kanfanar and opening a hub in Rijeka, we are continuing with BAT’s significant investments in Croatia,” said BAT Adria director Zvonko Kolobara.
“With the introduction of production lines for new product categories, Croatia is additionally strengthening its position on the global map of production sites in the tobacco industry. We are continuing to expand our selection for consumers in Croatia.”
The increased capacity in Kanfanar will help BAT meet growing demand for HTPs in Europe and northern Africa.
Plenkovic expressed satisfaction at BAT’s continued investments in Kanfanar.
“The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy,” he said.
“The company employs 1,600 people, and another 800 cooperate closely with BAT and make a living that way. The investment plans have been coordinated with their headquarters in London, and all the employees at the factory will be satisfied while the entire economy of Istria County will benefit from BAT’s operations.”
The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy.
In June 2020, BAT suggested it might relocate its Kanfanar factory to another country due to unfavorable business conditions. The government then embarked on a campaign to keep the multinational in Croatia.
Plenkovic stressed that the new investment reflected Croatia’s good business climate, not government pressure.
KAC Communications will be hosting the Eighth Global Forum on Nicotine (GFN) from June 17–18 at the Crowne Plaza Hotel in Liverpool, U.K. With its theme “The future for nicotine,” the GFN tackles the challenges and controversies, as well as the significant potential, of safer nicotine products. Participants can choose whether to attend in person or online. In-person registration costs £60 ($84.23) for two days, and online registration is free.
A new GFN∙TV online platform will stream broadcast footage of the conference free to viewers around the world, with a new commentary team offering their insights.
The GFN will feature more than 30 speakers from diverse backgrounds, including consumers, advocates, policy experts, public health specialists and medical professionals. All sessions will be live, with speaker presentations available on the GFN website before the event.
“It’s a fallacy that tobacco control and harm reduction are irreconcilable as many believe—they’re complementary,” said Paddy Costall of KAC Communications. “While tobacco control has reduced smoking rates in many places, it’s got its limits. In the U.K. and elsewhere, it’s been shown that access to appropriately regulated safer nicotine products helps people stop smoking.
“At GFN, we offer an inclusive platform to discuss all aspects of nicotine use, and we believe it’s important that no one is excluded from the debate. With one billion smoking-related deaths predicted by the end of this century, it’s time for ideology to make way for pragmatism.”
An estimated 2,500-3,000 people visited the Tobacco Plus Expo (TPE) on the opening day of the 3-day event. The TPE is normally the first industry trade show of the year. Before the show floor opened, several hundred attendees waited at the entrance to see the more 350 exhibitors.
Credit: Timothy S. Donahue
This year, due to the Covid-19 pandemic, the show was moved to May from its typical January date. It is also the first major trade show to be held at the Las Vegas Convention Center (LVCC) since it closed in March of 2020. There is a noticeable reduction in the number of nicotine vaping companies showing on the floor. There are however numerous CBD companies presenting, with most pushing their Delta-8 products.
Several attendees said they were surprised by the size of this year’s show and the turnout. George Cassels-Smith, president of eLiquitech, a Maryland based e-liquid manufacturer and flavoring house, said it was more than he expected. “The turnout was much more than I thought, there were people talking and enjoying a return to a bit of normalcy,” he said. “It was nice to see friends and associates that we haven’t seen in over a year.”
Several new products are launched during the TPE. This year, Southern California-based Humble Juice Co., for example, recently released its new e-liquid flavor, Sweet Citrus. The company also had several core product offerings, all of which were included in the brand’s premarket tobacco product application (PMTA) submitted to the Food and Drug Administration in Sept. of 2020.
“We are excited that Humble Juice Co. will be back at Tobacco Plus Expo in the flesh after last year’s event taking place virtually,” said Daniel Clark, CEO of Humble. “Humble is one of the e-liquid brands that have completed the preliminary PMTA review phase and is awaiting the start of the substantive review process. We are proud to introduce those attending TPE to our brand and share information about our focus on compliance and quality products.”
Bantam Vape also showcased several of its products that have a PMTA submitted including Sour Strawberry, Jasmine Milk Tea and Butterscotch. The brand’s PMTA application is currently queued for formal scientific review with the FDA.
“We will be sharing our science-backed, PMTA-filed flavors with buyers and will have brand reps [available] to answer questions face-to-face,” said Bantam Director of Sales Michelle Gottlich. “TPE poses an exciting opportunity to share our high-quality products with other established leaders in the vaping category.”
The TPE also has several cigar companies, hookah and other tobacco-affiliated products. The show does require wearing a face covering unless vaping, eating or drinking. The TPE runs from May 12-14. The TPE was ranked as one of the top 50 fastest growing trade shows in 2018 and 2019.
The agency isn’t slowing down. In the U.S. Food and Drug Administration’s (FDA) quest to relieve the market of illegal vapor products, the regulatory agency has issued 104 warning letters since Jan. 1, 2021. The latest recipient is Texas-based The Smoker’s Alternative. The letters were sent today May, 11, and posted the FDA’s website the same day.
The FDA states that The Smoker’s Alternative did “manufacture, sell, and/or distribute to customers in the United States The Smoker’s Alternative Vanilla Custard 60 ml 3mg e-liquid product without a marketing authorization order.” In order to legally sell vaping products, a company must have submitted a premarket tobacco product authorization (PMTA) to the FDA’s Center for Tobacco Products by Sept. 9, 2020.
The FDA often only lists a product or two that a company is selling as illegal. It then states that there may be more, but it is impossible to know if the warnings encompass all the company’s registered products. The agency states that it is the responsibility of the company to only sell products with a submitted PMTA. Companies have until Sept. 9, 2021 to sell product unless the agency makes a decision on the PMTA approval or grants an extension.
:Your firm is a registered manufacturer with over 1,800 products listed with FDA,” the FDA letter to The Smoker’s Alternative states. “It is your responsibility to ensure that your tobacco products comply with each applicable provision of the FD&C Act and FDA’s implementing regulations. Failure to adequately address this matter may lead to regulatory action, including, but not limited to, civil money penalties, seizure, and/or injunction.”
Companies that receive warning letters from the FDA have to submit a written response to the letter within 15 working days from the date of receipt describing the company’s corrective actions, including the dates on which it discontinued the violative sale, and/or distribution of the products. They also require the company’s plan for maintaining compliance with the FD&C Act in the future.
An amendment to the PACT Act to include vapor products has caused major disruption throughout the vapor industry.
By Timothy S. Donahue
When a 5,000-plus page omnibus bill, the Consolidated Appropriations Act of 2021, was signed into law on Dec. 28, 2020, the vapor industry knew its impact would be bad. It was impossible to know at the time how crushing a blow it would be. Buried deep within the bill (page 5,136) was the Preventing Online Sales of E-cigarettes to Children Act. It was a provision that effectively bans the United States Postal Service (USPS) from shipping electronic nicotine-delivery systems (ENDS).
The updated provision redefines the word “cigarette” under the 2009 Prevent All Cigarette Trafficking (PACT) Act to include ENDS products. ENDS would now be subject to the same shipping laws as combustible tobacco. The ensuing shipping problems for vapor retailers forced many companies to end all U.S. online sales and many others have been forced out of business. Chris Innes, owner of Elevated Vaping in Houston, Texas, announced that he would be closing his shop due to the PACT Act and the U.S. Food and Drug Administration’s stringent premarket tobacco product application (PMTA) requirements.
The Vape Spot in Los Angeles also announced it would be closing its store due to the PACT Act after eight years of helping smokers make the switch. Securience, parent to DuraSmoke, announced a merger with VapinDirect to stay in business. Logic ended all online sales on March 16. White Cloud Electronic Cigarettes ended all online U.S. sales on March 26. Vapewild and Vistavape went out of business entirely. The list goes on.
“If the increase in shipping costs wasn’t enough, the bill also imposes huge paperwork burdens on small retailers and backs it up with threats of imprisonment for even innocent mistakes,” said Gregory Conley, president of the American Vaping Association. “This is not a law designed to regulate the mail-order sale of vaping products to adults; it’s an attempt to eliminate it.”
According to Karen Goss of Chemular, a business improvement solutions and compliance systems provider, the PACT Act affects the entire vaping industry from the manufacturers shipping to the distributor, the distributor shipping to the retailer, and businesses taking orders from consumers online regardless of whether the product is even mailed.
While the legislation was geared toward nicotine vaping products, the law is so broadly defined that cannabis businesses must also comply. This means marijuana and CBD companies selling, manufacturing or shipping vaporizers or associated parts across state lines are required to comply with the provisions of the PACT Act.
“It affects literally everyone in the distribution chain, regardless of whether you are actively shipping your product into a state. If you are advertising your product for sale in that state, you should be registered with that state for PACT Act purposes. This is for any electronic device that, through an aerosolized solution, delivers nicotine, flavor or any other substance to the user by inhaling from a device,” said Goss during a recent webinar. “This covers liquid and any component, part or accessory, whether sold with the device or separate. It coves liquids with 0 mg of nicotine. It covers synthetic nicotine. It essentially covers the gamut of vaping products.”
The PACT Act has turned out to be an even greater hurdle to the vaping business than the FDA’s onerous PMTA applications, which had to be submitted to the regulatory agency in September of last year, according to James Xu, chairman and CEO of Avail Vapor, a major chain of brick-and-mortar vape shops. He said FDA regulations took time; the PACT Act was implemented in less than four months.
“It was just like, wow, this is happening. The PACT Act can take away the majority of online vapor businesses. Smaller companies aren’t going to be able to comply, especially these companies that are selling e-liquids for $10 a bottle that are now going to have to go up to $50, $60 a bottle,” he said. “They’re not going to survive; there’s no way they can survive. They were already cutting their profit margins just to be able to push product out.”
Credit: Sam Larussa
Rules of the road
PACT Act regulations are so stringent for online merchants that leading private shipping companies will also stop delivering vapor products. “Effective April 5, 2021, UPS will not transport vaping products to, from or within the United States due to the increased complexity to ship those products,” said UPS spokesperson Matthew O’Connor in a statement. FedEx began no longer accepting vapor products for delivery on March 1, 2021. DHL had already previously banned all shipments of nicotine-containing products and has now also ended all cannabis vapor product shipments.
The only shipping option that remains is Austin, Texas-based X Delivery, a private B2C shipping company. “The shipping carrier X Delivery isn’t afraid of a little red tape,” the company’s website states. “X will verify the age of the purchaser and obtain the required signature of the adult, as outlined in the PACT Act, with every vape-related delivery.” Another company, Vapefreight, was preparing to ship B2B vapor products but was still conducting trial runs as of this writing.
Many businesses were unsure if B2B mailing would be allowed. According to Azim Chowdhury, a partner at Keller and Heckman, the PACT Act has historically exempted business-to-business deliveries from the USPS ban. Specifically, the USPS ban does not extend to tobacco products mailed only for business purposes between legally operating businesses that have all applicable state and federal government licenses or permits and are engaged in tobacco product manufacturing, distribution, wholesale, export, import, testing, investigation or research.
“Companies seeking to use USPS for business-to-business deliveries must first submit an application to the USPS Pricing and Classification Service Center and comply with several other shipping, labeling and delivery requirements,” said Chowdhury. Under the B2B exception for the USPS, all transactions must be done in-person, face-to-face, according to the USPS.
“This was not a requirement set by Congress, and it imposes time and money burdens on both businesses and the USPS infrastructure,” said Conley. “USPS should accept the approved business purposes exception documentation, verify that a recipient is a covered and approved authorized business recipient of ENDS products, and allow mailings through both the USPS pickup and drop-off system in place for other USPS-handled packages.”
The USPS mail ban on vaping products will go into effect on or before April 27, 2021. After this date, retail customers will no longer be able to receive vaping products by way of USPS delivery, according to the USPS. However, the USPS rule states that the agency will mail vapor products under narrowly defined circumstances:
Noncontiguous states: intrastate shipments within Alaska or Hawaii;
Business/regulatory purposes: shipments transmitted between verified and authorized tobacco industry businesses for business purposes, or between such businesses and federal or state agencies for regulatory purposes;
Certain individuals: lightweight shipments mailed between adult individuals, limited to 10 per 30-day period;
Consumer testing: limited shipments of cigarettes sent by verified and authorized manufacturers to adult smokers for consumer testing purposes; and
Public health: limited shipments by federal agencies for public health purposes under similar rules applied to manufacturers conducting consumer testing.
The USPS rules also state that the listed exceptions cannot feasibly be applied to inbound or outbound international mail, mail to or from the Freely Associated States, or mail presented at overseas Army Post Office, Fleet Post Office, or Diplomatic Post Office locations and destined to addresses in the United States. Because of this inability, all ENDS products “in such mail are nonmailable, without exception.”
One way USPS could simplify the exception process would be digitizing not only the specific business requirements but also the exception application itself, suggested Conley. He says that by uploading the necessary permits and business filing documents online, USPS would have access to verified businesses anywhere in the nation, ensuring that there are not unnecessary delays in the shipping process for ENDS businesses. “This online portal could also be used by applicant businesses to verify the status of an approval for utilizing USPS as a shipping provider of ENDS in a timely manner,” he said.
Excluded from the statutory definition are products approved by the FDA for sale as “tobacco cessation products or for other therapeutic purposes and marketed and sold solely for such purposes.” The USPS also proposes to treat ENDS as a standalone category, “albeit one generally subject to the same restrictions and exceptions as cigarettes, consistent with the statute.”
According to the PACT Act legislation, anyone selling vaping products must:
Register with the U.S. Attorney General;
Verify age of customers using a commercially available database;
Use private shipping services that collect an adult signature at the point of delivery;
Register with the federal government and with the tobacco tax administrators of the states if selling in states that tax vaping products;
Collect all applicable local and state taxes, and affix any required tax stamps to the products sold;
Send each taxing state’s tax administrator a list of all transactions with customers in their state, including the names and addresses of each customer sold to and the quantities and type of each product sold; and
Maintain records for five years of any “delivery interrupted because the carrier or service determines or has reason to believe that the person ordering the delivery is in violation of the [PACT Act].”
Retailers can be cited by states for not following their individual requirements for tax payments and filings, and they may have to purchase tobacco and other licenses or hire a registered agent in the state. The cost for being PACT Act compliant can range anywhere from $40 to $250 or more per year per state, according to Goss. “There are a variety of companies that perform PACT Act compliance,” she said. “I put those numbers out there so that you have some sort of ballpark figure and you know you’re not getting overcharged. At the same time, it gives you a view of what to expect for this process on an ongoing basis.”
Credit: Manuel Alvarez
Registered for mail
In addition to the nonmailing provisions, the PACT Act requires anyone who sells ENDS products to register with the Bureau of Alcohol, Tobacco and Firearms and Explosives (ATF) and the tobacco tax administrators of the states into which a shipment is made or into which an advertisement or offer is disseminated, according to Chowdhury. Retailers who ship ENDS, cigarettes or smokeless tobacco to consumers are further required to label packages as containing tobacco and maintain records of all delivery sales for a period of four years after the date of sale, among other things.
Registering with the ATF online requires visiting the agency’s website (www.atf.gov) and filling out a single-page form. Goss said that companies should notice that in the first section under “Person,” the company would enter its name; person is defined as the business. “Another item to note is that you should list all of your business locations that are receiving product,” she said. “For example, if you have multiple distribution hubs, list all of them on this form. Save yourself the trouble of filling out multiple forms and lump all your business locations into one form.”
Companies will also have to tell the ATF where to send service of process in each state the company operates in case of any potential lawsuits. This is another area where hiring an agency to serve as a registered agent can make things easier. “There are a number of registered agent organizations that have offices in every state across the U.S. When you find a company that you like, they can most likely be your agent in all states that you require their services in,” said Goss. “Basically, they’re your mailbox in that state.” There’s not any further interaction required with the ATF after filling out the form unless a company changes agents or any information such as addresses change.
Completing the requirements to register with the states is more complicated. Each state has its own rules for companies doing business in the state. Retailers can be cited by states for not following their individual requirements for tax payments and filings. Some will have special forms while others will accept the same letter copy of the federal registration (addressed to the state). “Go to each state’s tobacco tax office website, if there is one,” said Goss. “Typically, that’s where the state will have information on how to register.”
The state and ATF registration requirements only apply when the destination state taxes ENDS products, according to JDSupra.com, a business news source. This is important for cannabis companies since some states, Oregon for example, have exemptions for ENDS shipments of cannabis (THC and CBD) devices.
The most arduous requirement of the PACT Act is monthly reporting. Similar to the ATF and state registration requirements, the state reporting requirements only apply when the destination state taxes ENDS, according to JDSupra. Just like with the registration process, states have different ways to submit information, and states also want varying amounts of information, according to Goss.
Some states want a form and hard copies sent in, while others have an online portal with templates. Typically, for each delivery sale and each person who has delivered product in connection with a delivery sale, it is required to file a delivery sales report with the comptroller’s office.
“The same product may get reported to the state multiple times. A bottle of e-liquid will get reported when it’s shipped from the manufacturer to the distributor, and then the distributor is going to report it when it ships it to the retailer,” says Goss. In most states, the reports must also include a memorandum or a copy of an invoice that provides:
the name, address and phone number of the person delivering the shipment to the recipient on behalf of the delivery seller;
the name, address, telephone number and email address of the individual to whom the delivery sale was made;
the brand or brands of the ENDS products sold; and
the quantity of ENDS products sold.
California, however, requires brand names and wants registrants to identify and distinguish between various types of ENDS products (a coil and an e-liquid, for example) with all invoice information relating to specific customers to be organized by city or town and by zip code. Texas wants only the brand name and the quantity sold. Every state requires the reports to be submitted on or before the 10th of the month for the previous month. For many states, the first reports were due April 10 for sales from March 27 to March 31.
Credit: John R Perry
Back to the basics
Many believe that including ENDS products in the PACT Act requirements is going to be a detriment to the overall public health of the country. If ENDS products cost more than combustible cigarettes and are harder to acquire, smokers who quit cigarettes with vaping will likely return to smoking combustibles. States are going to know where all the ENDS shipments are going now and how much was purchased. Alongside all the other requirements that vary by state, each state also has varying rules and regulations for when and who should apply and collect any excise taxes.
Xu says that many online companies do not charge either state or local sales tax or excise taxes. Now, the consumer will be responsible for all the taxes and the additional shipping costs. This could mean the end of online vapor sales entirely in some states. For example, numerous vapers from California order online due to their state’s complex tax regime, explains Xu.
According to the California Dept. of Tax and Fee Administration (CDTFA), the state’s statewide sales tax rate is 7.25 percent. The excise tax rate on vapor products is 59.27 percent of wholesale value. In most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. Those district tax rates range from 0.10 percent to 1 percent. Some areas may also have more than one district tax in effect.
“That will be a huge cost increase to the consumer when they add up the sales tax, local tax and the vaping excise tax. People order online, one for convenience, but mostly it’s for the cost. That cost advantage is going to go away,” said Xu. “Add an adult signature fee with the shipping-related cost and suddenly the online purchase is just as costly as from the brick-and-mortar stores … possibly even more. [In some states], it’s immediately become a level play[ing] field with brick-and-mortar stores.”
There is no arguing that the PACT Act will change the vapor market. There are going to be supply chain issues, and companies may receive warning letters, felony charges and fines as they navigate the new process. As numerous online retailers close or move to a distributor, those customers will most likely move to brick-and-mortar vape shops.
There are some positives, according to Xu. “The online market is going to suffer, and sadly, it’s going to push some back to traditional cigarettes. However, the local brick-and-mortar vape shop can do a better job at educating consumers about vapor products and helping people transition away from deadly combustibles,” he says. “Most shop owners and employees take pride in their customer service and their knowledge of the product. It’s too early to tell what type of impact the PACT Act will have on our retail stores or the industry as a whole. Right now, it’s still wait and see.”
X Delivery wants to be the logistics answer to the challenges of mailing PACT Act-compliant vaping products in the U.S.
By Timothy S. Donahue
When the options seemed bleak, X Delivery took on the challenge. Buried within the omnibus spending bill passed at the end of last year was the Preventing Online Sales of E-Cigarettes to Children Act that prohibits the U.S. Postal Service (USPS) from delivering nicotine or cannabis vaping products directly to consumers by bringing electronic nicotine-delivery systems (ENDS) and cannabis products under the 2009 Preventing All Cigarette Trafficking Act (PACT Act).
All the major shipping carriers (UPS, FedEx, DHL) stopped shipping vaping products too. It seemed the online market for vaping products had ended abruptly (see “Attack of the PACT Act,” page?). Then came X Delivery. The shipping carrier with the simple name offered a solution. While there is still room for growth and bringing on more drivers to deliver vaping products to more zip codes, X Delivery has given many online retailers hope.
The PACT Act requirements make shipping vapor products complicated. Paul Vinuelas, chief logistics officer for X Delivery, said that the company can fulfill all the PACT Act requirements, including verifying the age of the purchaser and obtaining the required signature of the adult with every vape-related delivery. All packages containing vaping products cannot weigh more than 10 pounds (4.5 kg) and all shipping packages must also carry a sticker stating the contents contain a “tobacco” product, along with a statement reminding the recipient that taxes are owed on the purchase, according to Vinuelas.
“All shipping has unique challenges. The fact that the national carriers have opted out of vape shipping shows us that they are only interested in the drop-and-run delivery model. They are not confident in their ability to deliver to a person 21 years or older,” explains Vinuelas. “That’s where X Delivery comes in; we have a network of dedicated individuals who take the PACT Act seriously. We are dedicated to ensuring compliance and protecting youth from obtaining these products. It takes a bit more effort to perform our deliveries and audit them for PACT Act compliance, but we think it’s worth it.”
X Delivery has the capability to ship products to consumers nationwide and can currently deliver to about 90 percent of the U.S. population for vaping products. Vinuelas told Vapor Voice that the company is working to increase its coverage to 100 percent of the country as soon as possible.
“Our final-mile delivery partners are required to check IDs and obtain adult signatures. From an end-customer’s perspective, ordering from an online merchant that ships via X Delivery is just like getting an order from an online merchant that ships with a household-name shipping carrier: You get tracking updates from the moment your order is placed all the way through to your delivery,” says Vinuelas. “We take it a step further and work to notify customers when their package is arriving soon to make sure they are home to receive their package.”
X Delivery was started by CEO Chris Guggenheim, who has a storied career in the entertainment and ecommerce technology industries. These experiences led Guggenheim to invest in technology that drives commerce and opened “X.” The technology company X powers X Delivery, and there are more offerings that will come to market over time under the X umbrella. In 2019, his highest-volume clients asked for help solving challenges they were facing regarding delivery. The technology company soon began supporting the high-tech nationwide shipping carrier X Delivery, which Guggenheim started in early 2020. In just six months after beginning operations, X Delivery delivered more than 10 million packages within a two-day average delivery time nationwide. The company began shipping vape products in late 2020.
“Over the last 6 months, we have partnered with vape companies to build a fully compliant shipping carrier service leveraging our existing technology and logistics capabilities,” explained Vinuelas. “We appreciate the seriousness of these residential deliveries and our local, state and federal regulation compliance efforts have been exhaustive yet successful.”
The knowledge gained running X helped Guggenheim solve a variety of retail issues for merchants, according to Vinuelas. “When we began to pilot our service in 2019, we realized that building technology from the ground up was the only way to support high-growth D2C [direct-to-consumer] e-commerce businesses long term,” he said. “When we talk about the value of X Delivery, it is to improve customer experience, sales conversion and to enable merchants to experience peak performance from one warehouse.”
X Delivery’s official slogan is “Reimagine Delivery.” X Delivery has an unofficial slogan too: Fix logistics. The purpose of X Delivery is to “simplify package delivery through technology, reliability, speed and price,” according to the company’s website, xdelivery.ai. Vinuelas says the company has developed a new approach to logistics by leveraging in-motion supply chain assets, from empty warehouses to local delivery services, and connecting them to new technology.
“Most e-commerce merchants will not be able to accurately answer how much it costs them to ship a package. Many e-commerce merchants incorrectly believe that running an operation out of multiple warehouses will help them take advantage of faster shipping and lower costs. This is not true, and this is what is broken,” explains Vinuelas. “Shipping carriers need to understand that all customers should get the same service no matter where they are shipping from or where they are shipping to in the U.S. This is our purpose in the market today. I’m also going to add that it shouldn’t take a Ph.D. to figure out what it will cost a merchant to ship in the U.S. Shipping carriers need to stop with the extra fees, fuel surcharges, Covid-19 fees, etc. We have done that.”
Paul Vinuelas
X Delivery uses an application programming interface (API) to help streamline its shipping process. An API is a set of protocols that sync up data in real-time across various platforms by allowing the backends of software and applications to communicate with each other over the internet.
According to the X Delivery website, with the help of an API, one program (application A) can “call” another program (application B) to access its data or functionalities. For example, users can see data from application A via application B’s interface without manually transferring the data from one program to another. API integrations allow users to automate processes across various digital applications to make the flow of information seamless and instantaneous.
“APIs allow companies to integrate shipping functionality directly into their system or other platforms so they can customize the interfaces to improve productivity and expand fulfillment capabilities while minimizing errors and delays associated with manually transferring data,” the website states. “Our API drives the future of logistics management. We help you simplify package delivery through technology, reliability, speed and price by leveraging in-motion supply chain assets to give you the best shipping options available in real-time.”
Currently, X Delivery is only shipping for customers with a minimum of 500 packages a day, shipping out of one warehouse with a weight limit of 10 pounds; however, Vinuelas says that the company is working on lowering the minimum package threshold. “We are working hard to eventually offer our service to smaller companies,” he said. “For now, we have partnered with several carefully selected fulfillment companies to help those (smaller) companies tap into the X Delivery network.”
Shipping with X Delivery will be slightly more expensive than shipping with the big-name delivery services but not much more than the cost of USPS delivery with adult signature collection. A 1-pound package costs approximately $6–$7, depending on the amount of packages shipped, and a 10-pound package costs approximately $10–$11 with X Delivery. Those costs are expected to decrease as the network broadens and more companies start shipping through X Delivery, according to Vinuelas.
Moving forward, X Delivery is dedicated to optimizing delivery routes. By joining the X Delivery team, businesses have access to multiple delivery options from anywhere in the country.
“We understand that nothing we say will earn trust better than showing results. We are 100 percent transparent with our clients and their end-customers. We also make it easy for anyone to try us out. Once you try us, you will understand how logistics should work, and you will never want to go back to the old way,” says Vinuelas. “Our long-term goal is to be the No. 1 shipping carrier for D2C ecommerce brands. Vape and e-cigarette merchants want to partner with people who understand the relevant laws in detail and will be a good partner to them. We are that partner.”
The latest version of Juul pods are superior to there predecessors, according to new research. Juul Labs began marketing in the European Union “new technology” Juul pods that incorporated a new wick that the company claimed provided “more satisfaction.” The wick system, Juul stated, would deliver more consistent voltage and provide a better experience to users.
Credit: Juul Labs
In new study, published in BMJ, the researchers compared design and materials of construction, electrical characteristics, liquid composition and nicotine and carbonyl emissions of new technology Juul pods to their predecessors. The study concluded that the pods were “consistent with manufacturer’s claims, we found that the new pods incorporated a different wicking material. However, we also found that the new pod design resulted in 50 percent greater nicotine emissions per puff than its predecessor, despite exhibiting unchanged liquid composition, device geometry and heating coil resistance.”
The study also found that when connected to the new technology pods, the Juul power unit delivered a more consistent voltage to the heating coil. This suggests that the new coil-wick system resulted in better surface contact between the liquid and the temperature-regulated heating coil. “Total carbonyl emissions did not differ across pod generations,” the report states. “That nicotine yields can be greatly altered with a simple substitution of wick material underscores the fragility of regulatory approaches that center on product design rather than product performance specifications.”
Montana vape shop owner Ron Marshall is taking the right to vape to a whole new level.
By Maria Verven
Ron Marshall, who owns Freedom Vapes with three vape shops in Montana, is taking the right to vape to the people’s house. Marshall ran for election to the Montana House of Representatives and won in the general election last November. A Republican, Marshall assumed office in January and will represent District 87—a section in the far western region of the state—for the next two years.
Even before he took office, Marshall worked on two pro-vaping bills—B106, which seeks to prohibit expansion of the Montana Clean Indoor Air Act, and HB137, which seeks to revise the laws around vaping and alternative nicotine products. “Writing laws should be done in this house—the people’s house,” Ron Marshall told members of the House Human Services Committee during a hearing at the state capitol in January.
Making a Difference at the State Level
Although the U.S. Food and Drug Administration classifies vapor devices as tobacco products, Marshall’s bill HB137 seeks to differentiate the two. If passed, the bill would cancel bans on indoor vaping and on the sale of flavored nicotine solutions as well as previous anti-vaping regulations enacted by various counties and cities in Montana.
In short, the bill would prevent the state of Montana from regulating the sale, manufacture, flavoring, marketing, product display, public exposure and access to “alternative nicotine products or vapor products.” Opponents said the bill would prevent individual communities from deciding what is best for them and that enacting the legislation would result in increased use of the addictive flavored nicotine products by young people.
Vapers and vape shop owners gave passionate testimony in favor of the bill, asserting that the state legislature should adopt rules for businesses that ensure reliable access to vapor devices, which are primarily used by smokers to help them quit combustible cigarettes. “Everyone that owns vape shops share the same mission as myself and my family—to help people whom everyone has forgot[ten] about—the daily smokers,” testified Keith Bowman, part owner and general manager of six e-cigarette vape stores in Montana.
Fighting an Uphill Battle
In 2019, the Montana Department of Public Health and Human Services enacted an emergency rule prohibiting the sale of flavored e-cigarettes. Last November, the city of Missoula became the first in the state to permanently ban the sale of flavored e-cigarettes. The state health department also proposed a permanent statewide ban on flavors but ultimately backed down after facing pushback from legislators. Nearly a dozen counties in Montana prohibit indoor vaping.
Ron Marshall / Credit: State of Montana
These anti-vape policies have harmed vape businesses across the state, Marshall said. “During the 2019 session, we defended against eight anti-vaping bills around taxes and clean indoor air. It was out of control,” he said. “We have no problem with sales to customers 18 years or older. The shops had already been doing that without being told. We wrote our own bill to curb youth access through store purchases. It didn’t make it out of committee, but the seeds had been sown.
“Our problem is being called a tobacco product. We are not. Our bill separates tobacco products from alternative nicotine products. We aren’t the same by law in Montana,” he said, explaining that they pay $5 each year to the Department of Revenue for a license to sell alternative nicotine products.
Marshall finally decided to take the fight to the people’s house and ran for the House of Representatives in his district.
“Our current representative termed out, and the seat was open. After a three-way primary and general election, we won! It was a great feeling and a sobering experience,” he said. “The experience you have in everyday life is transmitted to how I look at legislation. If it sounds fishy, it probably is. Ask tough questions. Every time you vote on a bill, it will change someone’s life.”
The Joy of Helping Others Quit Smoking
The Marshalls started their vape business in 2014 after Ron’s wife Deanna suffered from a bad respiratory infection. “She used a disposable V-2 device that someone had recommended, and it worked great for her. After about 10 days, the infection healed. She tried to smoke a cigarette, but it was so disgusting, she couldn’t do it.
“Being a smoker myself, I gave it a try,” Marshall said. “It was good, but not great. Deanna searched the internet looking for something better and found it in the form of SMOK Ego pens. We gave them a try, and it was perfect for both of us. It took me about 10 days to quit smoking completely.
“After that, several people asked us how we did it. The answer was simple. The hard part was accessibility. There were no vape shops in Montana.”
So, in February 2014, the Marshalls opened their own vape shop. “It was slow at first. Deanna put all her time and energy into it. I was only able to be in the shop two days a week,” Marshall said. “But after it took off, it was great. The joy of helping others get away from smoking and improving their lives was a reward that cannot easily be explained.”
Freedom Vapes now has 10 employees with stores in three locations—Hamilton, Missoula and Belgrade. The Marshalls said most of their customers vape as a way to wean themselves off combustible tobacco products. While they and other vape shops refuse to sell products to anyone under age 18, young people can still buy products online, Marshall said.
And while all of Freedom Vape’s flavorings are water-based, online products can potentially contain harmful contaminants. Still, other vapers may resort to mixing their own vape juice if a ban goes into effect.
“That’s very dangerous,” Marshall said. “If they don’t get the right flavoring or use oil-based materials, they can harm themselves. We tell our customers not to buy anything off the street or use any product if they don’t know its source. This ban won’t make the problem go away. It will make it more of a problem.”
Perspective From the ‘Inside’
Marshall said it’s totally different being on the “inside.” “It’s a whole different outlook. I spend lots of time in committee hearings on lots of issues. Plus, you need to draft your own legislation and get it through the system.”
Marshall had worked on his bill HB137 even before he was elected. After the election, a legislative drafter contacted him to ask what section of the Montana code the bill dealt with. A rough draft was sent back to him for input and adjustments before going through legal and other reviews.
“Once it was done, I signed the bill, and then it was off to committee assignments. The committee’s job is to look at the intent of the bill. The intent of HB137 is simply to prevent local cities, counties or state bureaucrats from banning a legal product. It defines and categorizes flavors and definitions of alternative nicotine products and vapor products.”
HB137 then made its way out of committee and on to the floor of the House. When the hearing was held in the House Health and Human Services committee, it was loaded with all the ANTZ (anti-vaping) groups. “It was easier for them to load the hearing with opponents—most of whom were from out of state—because they had to use Zoom during this Covid stuff. We have heard this all before. Nothing new here,” Marshall said.
Montana’s 100 lawmakers then debated it on the floor. “It was tough, but it made it,” Marshall said. The vote was 62 in favor and 37 opposed. “Some of the opposed injected their own personal beliefs into the vote. That is bad policy. You should not dictate your lifestyle on others.
“As a representative of the people, it is their—the people you represent—decision. If HB137 makes it through the Senate and to the Governor’s desk, it will make sure that the people of Montana have access to a product they want.
“It will ensure that small businesses won’t be shut down and closed. Montana will be a vape-friendly state for both consumers and business owners.”
The original “Vaping Vamp,” Maria Verven owns Verve Communications, a PR and marketing firm specializing in the vapor industry.
Florida lawmakers have overwhelmingly passed a bill signed by Governor Ron DeSantis Friday that will create a state regulatory framework for the sale of electronic cigarettes. The bill (SB 1080) will take effect Oct. 1. Among other things, the bill will raise the state’s legal age to vape and smoke tobacco to 21, a threshold already established in federal law.
Credit: Giban
It also would create a state regulatory framework for the sale of vapor products. The bill would ban vaping or smoking tobacco within 1,000 feet of a school and makes it illegal for local communities to create any regulations impacting the “marketing, sale, or delivery of, tobacco products.” It would also require retailers to obtain a “tobacco” permit.
House sponsor Jackie Toledo, R-Tampa, said before the bill passed that it is aimed at preventing minors from using electronic cigarettes. “This bill is necessary to stop youth vaping,” Toledo said.
