Author: Staff Writer

New EU Restrictions Worry Harm Reduction Advocates
Credit: Elsa Donald
Vapor advocates have expressed concern about reports that the European Commission is potentially seeking to ban flavored e-liquids.
According to the U.K. Vape Industry Association (UKVIA), leaked EU plans for a “Tobacco Free Generation” would increase controls on e-cigarettes, despite their proven value in smoking cessation efforts.
This latest EU plan could include the following proposals:
Extend taxation to “novel tobacco products,” including e-cigarettes
Extend the coverage of smoking bans, both indoor and outdoor, to vaping
A full ban on flavored products
The enforcement on plain packaging for vaping products
John Dunne
“We at the UKVIA are seriously concerned by reports that the European Commission is considering such regressive action, which will likely reduce the positive impact that vaping has on people’s lives,” said John Dunne, director general of the UKVIA.
“While we completely support efforts to combat the scourge of cancer in our society, the creation of artificial barriers to harm-reduction products is clearly counterproductive. Adult smokers must be empowered to make positive change, rather than being discouraged.
“Cancer Research UK, along with the Royal College of GPs, have confirmed vaping’s significant harm-reduction compared to cigarettes, as well as its efficacy in smoking cessation. The EU’s plans are out of step with this latest evidence.
“It is vital that the U.K. now take advantage of the legislative and regulatory independence afforded by Brexit, to safeguard this country’s proportionate, evidence-based approach to vaping.”
The document was leaked ahead of the announcement today of the EU’s “Beating Cancer Plan,” which among other things calls for reducing tobacco use to less than 5 percent of the EU population by 2040.
February 3, 2021
Chicago Files Suit Against Vapes.com for Illegal Sales
The City of Chicago has filed a lawsuit against Equte LLC, parent to Vapes.com, for “marketing and selling flavored vaping products.” The company allegedly marketed its products to youth, alongside selling flavored products. Four months ago, the Chicago City Council banned the sale of flavored vaping products favored by teens, but exempting flavored tobacco products, including menthol cigarettes.
Credit Emily Ralph
The latest in a string of city lawsuits against the e-cigarette industry follows an investigation by the Department of Business Affairs and Consumer Protection. It identified the two companies as having violated the flavored tobacco ban, according to the Chicago Sun Times.
“E-cigarettes are unhealthy and addictive, and businesses deliberately target young people in the hope they’ll develop lifelong customers,” Mayor Lori Lightfoot was quoted as saying in a news release. “The City of Chicago’s message to vaping companies is clear: If you break the law, we will go after you, especially if you try to sell to our youth.”
O’Shea originally championed a much stronger, citywide ban on all flavored tobacco products. He was forced to settle for less — a ban on “flavored liquid nicotine products” — after running into a buzz-saw of opposition from gas stations, convenience and tobacco stores. They accused O’Shea of kicking them when they’re down, with their businesses hurting during the pandemic.
O’Shea could not be reached for comment. The press release quoted him as saying that this lawsuit “not only takes these companies to task, but sends a clear message to anyone who thinks they can push vaping products onto our kids and get away with it.”
February 2, 2021
Surprise: Study Finds Vapers Vape in No Smoking Zones
A recent survey from South Korea found that 8 in 10 South Korean e-cigarette users said they had secretly smoked stealthily in non-smoking areas. At 83.5 percent, the vast majority of e-cigarette users said they had vaped illegally, dwarfing the 16.5 percent who said they did not participate in such activity.
Credit Sungho Song
Under the National Health Promotion Act, those who use e-cigarettes in non-smoking areas can be fined, just like for smoking conventional tobacco cigarettes.Heat-not-burn products were not mentioned in the study and would face similar fines, according to a story by The Korea Bizwire.
A research team from the Asan Medical Center conducted a survey of 7,000 men and women between 20 and 69 years of age. Of the total, the number of people who had used e-cigarettes in the previous month stood at 394. Among vapers, 44.6 percent between 20 and 34 years old, while men accounted for 74.1 percent of the total.
Most participants said the smoked at home indoors, which accounted for the largest share at 46.9 percent, followed by private cars at 36.9 percent and outdoor non-smoking areas at 28.3 percent. Men and women accounted for 44 percent and 55.6 percent of the violators, respectively, indicating that more than half of female vapers users are vaping secretly at homes.
February 2, 2021
TPB Announces $250 Million Private Offering

Photo: Tobacco Reporter achive
Turning Point Brands (TPB) announced the proposed private offering of $250 million aggregate principal amount of its senior secured notes due 2026. The notes will bear cash interest semi-annually beginning in 2021. The notes will be TPB’s senior secured obligations and will be guaranteed on a senior secured basis by each of TPB’s wholly owned domestic subsidiaries (except for certain specified subsidiaries).
TPB intends to use the proceeds from the offering to repay all obligations under and terminate its existing term loan and revolving credit facility; to pay related fees, costs and expenses; and for general corporate purposes. The offering is subject to market conditions.
TPB also announced that in connection with the offering, it intends to enter into a new $25 million senior secured revolving credit facility. The offering is not conditioned on the entry into the revolving credit facility.
In connection with its proposed offering, TPB announced certain preliminary operating results for the fourth quarter and full year ended Dec. 31, 2020.
TPB estimates that for the fourth quarter of 2020 net sales will be between $103.5 million and $105.5 million, income before taxes will be between $16 million and $17 million and adjusted EBITDA will be between $25 million and $26 million. Each of net sales and adjusted EBITDA will be near or above the high end of TPB’s previously disclosed guidance for the fourth quarter of 2020. TPB plans to release its full year end 2020 financial results on Feb. 10, 2021.
The company will hold a conference call to review fourth quarter and fiscal year 2020 results on Feb. 10.
February 2, 2021
Connecticut’s Largest City Seeking to Ban Flavored Vapes
The beatdown of vapor products goes on as Connecticut’s largest city is now looking to ban flavored vaping and other tobacco products. City lawmakers announced the intent to ban flavors at a press conference last week.
In addition, state Sen. Marilyn Moore said she will address new legislation before the Connecticut General Assembly’s Public Health Committee, on which she serves, to ban the sale of all flavored tobacco products, including menthol cigarettes and flavored e-cigarettes.
If passed, Bridgeport would join more than 100 cities in the nation and two states that have enacted bans on flavored tobacco products, which the group said have been proven to be more attractive to children.
Earlier this year, Connecticut lawmakers announced they wanted more vapor industry legislation.
February 1, 2021
Lawyer Says Loveland Council Illegally Texted Over Flavor Ban
Some Loveland City Council members deliberated on a proposed ban on flavored vaping and other tobacco product sales in private text messages, possibly violating Colorado state law, a Dec. 8 text message thread shows.
Credit: Pixabay
Steve Zansberg, a Denver attorney and president of the Colorado Freedom of Information Coalition, called the thread an “extremely clear-cut” violation of state rules.
The Loveland Reporter-Herald obtained the messages from Mayor Jacki Marsh after the paper received a confidential tip. All nine council members and City Manager Steve Adams were included in the thread, though not all council members participated.
Time stamps on the text thread show that 13 of the messages were exchanged by councilors during their regular meeting that evening, which was held virtually and dealt mostly with the proposed ban and the problem of youth vaping.
In the text conversation, council members Kathi Wright, Steve Olson, Don Overcash and John Fogle deliberated on how they would respond to calls for a ban on selling the products.
“Looks like another special meeting this month,” Wright said at 9:17 p.m., reviving a thread that Adams began earlier in the day to let councilors know about a scheduling change.
“yup. but don’t cave,” Overcash replied.
After Olson asked whether Wright was interested in “working with business to find a win win solution,” Wright said she “still believe(d) we have another step, talking with local business.”
February 1, 2021
U.K. Vapor Maker Supreme Raises GBP68 Million In IPO
In its initial public stock offering, Supreme, a maker of fast-moving consumer goods such as vaping brand 88Vape, announced the pricing for its initial public offering in London, joining a rush to market early in the new year.
Credit: 88Vape

Supreme is listing on AIM and expects to start trading today.
Supreme said it has placed 5.0 million shares at 134 pence each to raise GBP67.5 million. Of this, GBP60.0 million is for selling shareholders, and GBP7.5 million from new shares for the company, which it said will be used to pay off debt, according to Alliance News. The selling shareholders include Sandy Chadha, the founder and chief executive officer, who will retain a 56.8 percent stake, leaving a 43 percent free float.
Supreme will have a GBP156.1 million market capitalisation at its IPO price. Supreme’s IPO is part of a flurry of new listing activity in London early in the 2021. These have been headlined by large-size floats by bootmaker Dr Martens and card seller Moonpig. Also planning IPOs are miner Cornish Metals Inc, investment fund Cordiant Digital Infrastructure Ltd, and life sciences company 4basebio UK Societas.
Not yet confirmed for London, but potentially biggest by far, is food delivery firm Deliveroo, which is expected to have a market cap of more than $7 billion. Deliveroo also is considering a New York listing, according to media reports.
Supreme supplies products across five target categories: batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods. In addition to brands it owns, such as 88Vape, Supreme licenses major battery brands Duracell, Energizer and Eveready. Its customers include Fraser Group PLC’s Sports Direct, motor supplies chain Halfords Group PLC, and grocers Asda and Iceland.
Supreme recording adjusted earnings before interest, tax, depreciation and amortisation of GBP16.2 million on revenue of GBP92.3 million in the financial year that ended March 31 last year. In the six months to September 30 last year, Ebitda was GBP8.4 million on revenue of GBP56.3 million.
The company said it plans to pay dividends at a rate of 50 percent of net profit. “I am deeply proud of the business we have developed and believe our flotation on AIM will provide Supreme with the tools with which to capitalise on a number of exciting growth opportunities,” said CEO Chadha. “We have created a profitable business of significant scale, underpinned by a platform which provides a seamless route to market for a number of leading brands and product categories.”
February 1, 2021
ITG Brands sues Bloom for Use of Double ‘O’ Logo
The owner of the Kool cigarette brand sued the maker of Bloom cannabis e-cigarettes in Los Angeles federal court for allegedly infringing the brand’s trademark, according to Bloomberglaw.com.
Credit: Bloom
Bloom’s logo uses interlocking “O” letters that confusingly resemble ITG Brands LLC’s famous Kool logo, according to ITG’s complaint. The suit was filed last week in the U.S. District Court for the Central District of California.
ITG says Capna Intellectual, which owns the Bloom brand, has applied for federal trademarks covering Bloom for e-cigarettes and oral vaporizers. ITG says it sent Capna a cease-and-desist letter in December.
The complaint says the Bloom marks are intended to trade off of Kool’s well-known branding.
February 1, 2021
E-Commerce Leader Asks FDA to Prioritize Harm Reduction

Photo: Bacho12345 | Dreamstime.com
The U.S. Food and Drug Administration should encourage harm reduction products and help smokers give up cigarettes, according to Markus Lindblad, head of external affairs at the Haypp Group, the parent company of NicoKick, which describes itself as the world’s largest American e-commerce company in the smokeless industry.
In a letter to Acting Food and Drug Administration (FDA) Commissioner Janet Woodcock, Lindblad encouraged her to prioritize the goal she helped set at the FDA in previous years to enable greater use of healthier harm reduction products and help smokers quit combustible products.
“Our mission at NicoKick is to drive real change in the industry and encourage alternative nicotine enjoyment for adults seeking products other than inhalants,” Linblad wrote.
“We recognize that your focus is understandably on addressing the coronavirus pandemic, but we hope as you lead the Food and Drug Administration that you continue to prioritize tobacco harm reduction products that will produce better health outcomes for millions of American smokers. We can all agree any effort to transition from traditional tobacco products to those that reduce harm to the consumer should be supported and would be an important win for public health.”
February 1, 2021
SwissX Files Infringement Suit Against Juul Labs
SwissX Labs, a U.S.-based CBD company, has brought a lawsuit claiming that Juul Labs infringed on one of its patents. Filed in the U.S. District Court of Delaware, the suit alleges that Juulpods copy the use of a patented combined e-liquid and vaporization chamber (cartomizer) owned by SwissX.
Credit: Insurance Journal
Owned by billionaire Alki David, SwissX states in the suit that Juul Labs has known about U.S. Patent No. 9,351,522 (522 patent) since at least March 2018. The U.S. Patent and Trademark Office (USPTO) issued the patent in 2016 to inventor Robert Safari, who assigned it SwissX.
After its issue on May 31, 2016, the 522 patent was was active until June 1, 2020. On June 2, 2020, “the enforceability of the 522 patent temporarily lapsed, due to an inadvertent failure to pay the maintenance fee,” according to the filing. On Dec. 21, 2020, SwissX filed a petition to reinstate the 522 patent at the USPTO. The Petition was granted, and SwissX paid the outstanding fee.
“Thus, on December 21, 2020, the [522 patent] was restored to full force and effect … SwissX
is entitled to damages adequate to compensate it for all acts of infringement that occurred, or which may occur, at any point while the [522 patent] was or is in force,” the suit states.
Juul Labs has not publicly responded to the lawsuit. A judge recently dismissed an investor lawsuit against Juul Labs. However, the company still faces lawsuits from several states and school districts around the U.S.
January 28, 2021