Author: Staff Writer

  • Juul Labs Working to Raise $1 Billion in Funding

    Juul Labs Working to Raise $1 Billion in Funding

    Credit: Jet City Image

    Juul Labs is seeking to raise about $1 billion, reports Bloomberg News

    The e-cigarette manufacturer, which had about $800 million in revenue in 2022, is reportedly working with Jefferies Financial Group for the fundraising.

    In July, the company said it was exploring options including financing alternatives, to protect its business and help refinance an existing loan, as it dealt with lawsuits related to the marketing of its e-cigarettes.

    In November 2022, Juul secured a cash infusion to keep the company in business while it appeals the U.S. Food and Drug Administration’s marketing denial order related to its vapor products.

    A pioneer in the vaping business, Juul Labs has gone from dominating the U.S. e-cigarette market to fighting for its survival in a relatively short time.

    Following its initial success, the company quickly came under regulatory scrutiny over its marketing practices. Critics blame Juul Labs for contributing to an “epidemic” of underage vaping.

  • Manila Rolls Out Red Carpet for Heated Tobacco Makers

    Manila Rolls Out Red Carpet for Heated Tobacco Makers

    Photo: PMI

    The Philippines’ Department of Trade and Industry (DTI) is urging tobacco companies to manufacture their heated tobacco products in the country, citing surging domestic demand and export opportunities, according to the Philippine News Agency.

    During the International Tobacco Agriculture Summit in Taguig City on Aug. 2, DTI Undersecretary Ceferino Rodolfo said while local demand for cigarettes is expected to decline from 49.61 billion sticks in 2022 to 39.06 billion sticks in 2027, sales of HTPs are poised to increase significantly during that period.

    He cited a Euromonitor predicting HTP retail sales of HTPs to surge by 511 percent to 4.06 billion sticks in 2027.

    Rodolfo said HTP producers would benefit the Philippines’ free trade agreements with regional markets. “HTPs, if manufactured in the Philippines, can be imported in ASEAN (except Vietnam), Australia, New Zealand, Japan, Korea, and Hong Kong at zero percent tariff duty,” he was quoted as saying.

    In 2022, the top destinations for Philippine tobacco products included South Korea at $102.2 million, Thailand ($98.29 million) and Myanmar at $49.4 million.

    According to Rodolfo, Philip Morris Fortune Tobacco aims to build a PHP9-billion factory in Tanauan, Batangas, for the production of IQOS devices.

  • New BAT Boss Calls for ‘Better’ Vaping Rules

    New BAT Boss Calls for ‘Better’ Vaping Rules

    Tadeu Marroco says issues such as youth use continue as many countries adopt a tougher stance on vaping products.

    The newly appointed head of British American Tobacco has expressed a desire for governments to apply more “better regulations” towards vaping products and other tobacco alternatives, as the public debate over them is growing in intensity and becoming an issue for the industry.

    Tadeu Marroco told the Financial Times that the FTSE 100-listed owner of Lucky Strike and Dunhill was “very keen” to work with regulators to address problems such as vaping’s use among teenagers and its environmental impact.

    “We need to have better regulations. We cannot ignore the benefit of migrating smokers out of cigarettes, but being unregulated, we have issues related to youth access and the environment,” Marroco said.

    “The problem is that this is a phenomenon that has grown so fast and the regulators are always catching up. But there are clearly opportunities for us to improve the level playing field.”

    Since Marroco took the helm in May of this year, there has been an increased push around the globe to restrict flavored e-cigarettes, due in part to advice from anti-nicotine groups and World Health Organization. India, Thailand, and Argentina have all implemented full bans on all forms of vaping products.

    NHS guidelines in the UK suggest vapes can help people stop smoking although they also state that the activity “is not completely risk-free”. The government said in April it would offer 1 million smokers vape starter kits. Selling vapes to under-18s is illegal.

  • Hemp Farmers Sue Maryland for License ‘Monopoly’

    Hemp Farmers Sue Maryland for License ‘Monopoly’

    Credit: H Ko

    As Maryland’s recreational cannabis industry grows, a group of hemp entrepreneurs are challenging the state and its marijuana regulators in court.

    The Maryland Hemp Coalition joined forces with several other hemp growers and retailers to sue Governor Wes Moore, the Maryland Cannabis Administration, and the Maryland Alcohol, Tobacco, and Cannabis Commission, according to media reports.

    Nevin Youngan, an attorney representing the hemp industry in the suit, stated that his clients “had been lawfully selling these products for years” and were now being told that they could not do so without first procuring a license—despite there being “nearly insurmountable obstacles” in their way.

    During the latest legislative session, lawmakers put into place regulations governing recreational marijuana in Maryland, including limits on the allowable THC concentration in hemp-derived products Products such as Delta-8 could only be sold without a recreational marijuana license as well as details about how to obtain said licenses.

    Attempts during the legislative session were made to create a carveout for the hemp industry to allow businesses to continue selling their products. Another amendment floated during session including creating new testing and regulation for hemp products; both plans failed to be included in the final law passed by lawmakers.

    Without a recreational marijuana license, hemp-business owners were forced to close their doors on July 1.

  • Vaporesso Scores With 4 London Design Awards

    Vaporesso Scores With 4 London Design Awards

    Vaporesso has received recognition at this year’s London Design Awards with four products being awarded for their exceptional design. Vaporesso is the open system subsidiary of Smoore Technology.

    The London Design Awards is an international competition that recognizes exceptional designs and outstanding creative projects worldwide, celebrating the vibrancy and diversity of the international design community.

    The four products from Vaporesso – the COSS, ECO NANO, LUXE XR, and XROS 3 NANO – have “showcased the brand’s formidable innovative prowess and have also been recognized with awards from many organizations,” a press release states.

    “Winning these awards is a testament to the creativity, skill, and dedication of our team,” said Jimmy Hu, vice president of Vaporesso. “We are thrilled to have our efforts recognized on such a prestigious global platform. It validates our commitment to delivering innovative, high-quality products that enhance the vaping experience for our customers.”

    The London Design Awards, held annually, applauds outstanding design achievements across various creative sectors. It acknowledges exemplary projects, products, and professionals who demonstrate innovation, creativity, and excellence within their respective industries.

    Meanwhile, the London Design Awards not only honors design excellence but also fosters creativity, encourages innovation, and facilitates collaborations between designers and design-driven businesses.

    The awards have grown in stature and popularity since their inception, attracting a wide range of participants from various design fields.

  • Turning Point Releases Second-Quarter Results

    Turning Point Releases Second-Quarter Results

    Image: Tobacco Reporter archive

    Turning Point Brands (TPB) announced financial results for the second quarter ended June 30, 2023.

    Total consolidated net sales increased 2.6 percent to $105.6 million compared to the second quarter of 2022. Zig-Zag Products net sales increased by 1.1 percent. Stoker’s Products net sales increased by 7.3 percent. Creative Distribution Solutions net sales decreased by 1.3 percent. Gross profit increased 2 percent to $52.5 million, and net income increased 83 percent to $9.9 million. Adjusted net income increased 8.4 percent to $15.3 million.

    “Our second-quarter results demonstrated continued progress against our plan,” said TPB President and CEO Graham Purdy in a statement. “The Zig-Zag segment grew double-digits sequentially from the first quarter as trade inventory normalized. Stoker’s had another solid quarter of performance led by double-digit growth in Stoker’s MST [moist smokeless tobacco]. We opportunistically purchased another $15.1 million in aggregate principal amount of our convertible notes during the second quarter while maintaining a strong cash balance. Given our solid first-half performance, we are raising our guidance for the full year.”

    For the second quarter, Zig-Zag Products net sales increased 1.1 percent to $46.7 million. TPB’s Canadian and other smoking accessories businesses saw strong growth during the quarter, which was partially offset by declines in the U.S. rolling papers and wraps businesses.

    For the quarter, the Zig-Zag Products segment gross profit was steady at $26.4 million. Gross margin declined 60 basis points to 56.6 percent, driven primarily by product mix.

    “Our e-commerce business had another quarter of double-digit growth as we continue to build our omnichannel presence,” said Purdy. “We remain encouraged by our prospects with secular cannabis consumption growth trends driving demand for our products.”

    For the second quarter, Stoker’s Products net sales increased 7.3 percent to $36.1 million. Double-digit growth of MST offset a decline in loose-leaf chewing tobacco. For the second quarter, total Stoker’s Products segment volume increased 0.7 percent while price/mix increased 6.6 percent.

    For the quarter, the Stoker’s Products segment gross profit increased 10.4 percent to $20 million. Gross margin expanded 160 basis points to 55.4 percent due to MST pricing gains.

    “Stoker’s continues to benefit from strong market share gains in both the MST and loose-leaf chewing tobacco categories as its value proposition continues to resonate with consumers,” continued Purdy.

  • 2023 WHO Report Wrongly Details Malaysia Policy

    2023 WHO Report Wrongly Details Malaysia Policy

    Media has reported that the recent World Health Organization (WHO) 2023 report on the global tobacco epidemic wrongly claims Malaysia doesn’t have or barely has smoking bans in public places. Malaysia is marked as having “zero” indoor places with a complete smoking ban. Malaysia has had smoke-free places since 2004.

    The WHO Report on the global tobacco epidemic 2023 launched yesterday – which covered data until 2022 – categorised Malaysia as having a “complete absence of a smoking ban, or up to two public places completely smoke-free,” according to media reports.

    Other smoking ban categories in the WHO report were three to five public places completely smoke-free, six to seven public places completely smoke-free, and all public places completely smoke-free (or at least 90 per cent of the population covered by complete subnational smoke-free legislation).

    Malaysia’s level of compliance with smoking bans was categorized as “data not required or not applicable”.

    Going into further detail on public places with complete smoking bans, Malaysia was marked as having “zero” indoor places with a complete smoking ban, as well as having seven outdoor places where smoking is banned either fully or partially.

    The 2023 tobacco epidemic report by the United Nations health agency claimed that Malaysia does not have smoking bans in government facilities, indoor offices and workplaces, and pubs and bars.

    On health care facilities, educational facilities except for universities, universities, restaurants, and public transport, the WHO report categorized Malaysia with “no” ban, but with an additional tag: “Smoking is banned and the law does not allow designated smoking rooms, except if the health authority allows them by administrative act. Until now, no such administrative act has been taken”.

    Malaysia did not receive a single “yes” in the WHO report across all eight categories of public places on whether there is a complete smoking ban. Compliance levels with smoking bans in Malaysia for all these categories were marked as “data not required or not applicable”.

    Other countries in the Western Pacific region, in which Malaysia was categorized, received “yes” in various different categories of public places on whether there are smoking bans.

    The WHO report also stated that for Malaysia, smoking is not comprehensively banned in one or more jurisdictions.

    In another table comparing countries on additional public places with complete smoking bans, again, the WHO report marked “no” for Malaysia in all categories except one — outdoor children playgrounds or parks — that got a “yes”.

    The “no” for Malaysia with a tag — “Smoking is banned and the law does not allow designated smoking rooms, except if the health authority allows them by administrative act. Until now, no such administrative act has been taken” — was marked for these categories: land transport (train, taxi, bus, metro, tram); air transport (plane); water transport (boat, vessel, ferry); indoor waiting areas of public transport (train station, metro station etc.); airports; hotels; prisons; shops (supermarket, shop, shopping mall); and cultural facilities (museum, cinema, theatre, arena). Other countries, on the other hand, obtained a “yes” for various different categories.

    On additional characteristics of smoking bans, the WHO report marked “yes” for Malaysia on the requirement to display non-smoking signs in smoke-free places; fines on the establishment for not asking a patron to stop smoking and for not posting no-smoking signs; fines on the patron for smoking; and a citizen complaints and investigations system.

    Malaysia was marked “no” for required signs identify a telephone number or other mechanisms for the public to report violations; fines on the establishment for not removing ashtrays; and dedicated funds for enforcement. “No explicit ban on use” was marked for Malaysia for the categories of ban on the use of heated tobacco products (HTPs) and electronic nicotine delivery systems (ENDS) or electronic non-nicotine delivery systems (ENNDS) in public places.

    This table on additional characteristics of smoking bans appears to be mostly accurate for Malaysia, except for the ashtray component. Eateries in Malaysia are prohibited from providing ashtrays.

    On “no explicit ban on use” of e-cigarettes in public places, although Malaysian health authorities do sometimes take action against people for vaping in no-smoking areas, this is not explicitly prohibited in the law, as the Control of Tobacco Product Regulations only covers cigarettes and conventional tobacco products.

    Malaysia has had smoke-free places for nearly two decades since the enactment of the Control of Tobacco Product Regulations 2004 under the Food Act 1983. Section 11 of the 2004 regulation itself prohibits smoking in government premises, air-conditioned eateries, shopping complexes, hospitals or clinics, educational institutions or higher educational institutions, airports, and public vehicles or public transport terminals, among others. Designated smoke-free zones have been increased in Malaysia over the years in amendments to the 2004 regulation.

    According to an update as of 2020 by Tobacco Control Laws – a website by U.S.-based International Legal Consortium, a team of lawyers who specialize in tobacco control – Malaysia is 100 percent smoke free in multiple indoor places, including public transport, government facilities, health care facilities, schools and universities, and restaurants, among others.

    In 2019, then-Health Minister Dzulkefly Ahmad expanded the smoking ban from indoor restaurants to open-air eateries.

  • China’s Boton Group Divests 51% Stake in Bubblemon

    China’s Boton Group Divests 51% Stake in Bubblemon

    Kate Wang / Credit: RELX

    China Boton has sold its Bubblemon Vape Brand to the founder of RELX vaping products, Kate Wang.

    According to an announcement, the company has signed a sale agreement with the Han Holding SPV.

    Han Holding is an investment holding limited company registered under the laws of the British Virgin Islands and a wholly-owned subsidiary of Sunnyheart Inc.

    Sunnyheart Inc. is a limited liability company registered under the laws of the Cayman Islands, primarily engaged in the sale of e-cigarettes.

    According to the directors, based on the information provided by Sunnyheart Inc., the ultimate beneficial owner of Sunnyheart Inc. is Wang Ying (also known as Kate Wang, CEO and founder of Relx Technology), who holds 50 percent voting rights of Sunnyheart Inc. and is the sole director of Sunnyheart Inc.

    Upon completion of the transaction, the buyer and Han Holding SPV will respectively hold 81 percent and 19 percent of the target company’s equity.

    After the reorganization, Boton Holding SPV and Han Holding SPV will respectively hold 51 percent and 49 percent of the target company’s equity, making the Korean target company a wholly-owned subsidiary of the target company, according to 2FIRSTS.

    China Boton is an investment holding limited company registered in the Cayman Islands, mainly engaged in the research and development, production, trading, and sale of extracts, essences, and spices. The company is also involved in the design and manufacture of high-quality e-cigarettes and related products.

  • Activists Slam Latest WHO Report as Misguided

    Activists Slam Latest WHO Report as Misguided

    Photo: Tom

    The World Health Organization’s recently published report on the global tobacco “pandemic” discounts the impact of harm reduction and vaping, according to Michael Landl, director of the World Vapers’ Alliance

    “While filled with biased anti-vaping scaremongering and unfounded claims, the report’s overall direction is perplexing. Instead of prioritizing the crucial goal of reducing smoking rates, the WHO is directing its focus on vaping, which happens to be the most potent smoking cessation tool available.”

    In the report’s foreword, Director-General Tedros Adhanom Ghebreyesus asserts that vaping would undermine anti-smoking efforts, claiming that e-cigarettes are harmful to both the people using them and those around them.

    “Regrettably, the WHO appears to ignore reality and scientific evidence,” said Landl in a statement. “Countries that adopt an open and consumer-friendly approach to harm reduction products achieve significantly better results than those following WHO’s misguided path. Comparative data from Sweden and the United Kingdom demonstrate their remarkable success in reducing smoking rates, surpassing countries with a negative harm reduction approach by a wide margin.”

    The WHO report also claims a gateway effect from vaping to smoking and alleges that vaping flavors target children. It further highlights that 121 countries have adopted vaping regulations, with 34 completely banning vape sales.

    “The outdated and debunked theories propagated by the WHO report pose risks to public health,” said Landl. “The notion of a gateway effect from vaping to smoking lacks evidence. Furthermore, flavors are essential for adults as they play a crucial role in helping millions of smokers transition to vaping. Additionally, celebrating countries which ban a way less harmful alternative for smokers is absurd.”

    According to a review of 15 studies, “a true gateway effect in youths has not yet been demonstrated,” according to Landl. Factors such as anxiety, parental smoking habits, peer attitudes and household income must be considered, he noted. Another study found that vaping is not a gateway to smoking but rather that negative circumstances in teenagers’ lives lead to risky behaviors. According to the Yale School of Public Health, vaping flavored e-cigarettes is linked to a 230 percent increase in adult smoking cessation, and a flavor ban, as suggested by the WHO, could drive five out of 10 vapers back to smoking or the black market.

    “The lack of empathy for smokers and vapers, coupled with the outright denial of scientific findings, will have severe consequences for many lives,” said Landl. “The WHO seems to have lost sight of its ultimate goal – reducing smoking rates. While we all agree that teenagers should not smoke or vape, the report notes that only 45 percent of countries ban e-cigarette sales to minors, and 10 percent of countries impose no age restrictions on cigarette purchases. Why not address these real-life challenges? The WHO systematically disregards an abundance of scientific evidence supporting the benefits of vaping, not to mention the experiences of millions of vapers. Vaping is 95 percent less harmful than smoking and a more effective method to quit smoking compared to traditional products like gum and patches. Restricting or banning access to vaping will only lead to unnecessary loss of lives.”

  • UKVIA Announces Annual Forum and Awards Dinner

    UKVIA Announces Annual Forum and Awards Dinner

    Photo: UKVIA

    The U.K. Vaping Industry Association (UKVIA) annual Forum and Industry Recognition Awards Dinner will take place at the QEII Centre in London on Nov. 10, 2023.

    Under the theme, “Accelerating Action to Secure a World Without Smoking,” the event will feature sessions focusing on harm reduction, illicit trade and sustainability, among other topics.

    Secretary General of the China Electronic Chamber of Commerce Ao Weinuo will be giving a keynote presentation on China’s commitment to change. Also included on the conference agenda is a dialogue on the upcoming general election, which will explore how the U.K. industry should prepare for a possible change in government and will ask how to retain the existing “parliamentary momentum” around vaping.

    “We have, and I’m confident will continue to, make significant strides in putting forward the harm reduction benefits of vaping on the political front, but it’s no secret the landscape could soon shift and we need to be prepared,” said UKVIA Director-General John Dunne in a statement.

    Following the forum, the UKVIA will host its  annual Industry Recognition Awards dinner.

    According to Dunne, the awards are an opportunity to recognize the “outstanding contributions and achievements” of individuals and organizations both inside and outside the industry.

    Last year, 500 delegates and guests attended the UKVIA Forum and Awards. This year’s event is expected to attract an equally high number of visitors.