Author: Staff Writer

  • Vape Shark Launches Gunpod 2000 in Australia

    Vape Shark Launches Gunpod 2000 in Australia

    Credit: Vape Shark

    Vape Shark Australia launched the Gunnpod 2000 Puffs.

    “The cutting-edge device is equipped with advanced technology that provides up to 2000 puffs of delicious nicotine-free flavors,” a press release states.

    The device also has a long-lasting battery that can be recharged to provide up to two full days of vaping. Additionally, the design of the device allows for minimal heat build-up and maximum flavor output.

    The Gunpod 2000 comes with a variety of protective features such as overheating protection and short-circuit detection.

    “With its sleek and modern design, the Gunnpod 2000 Puffs is sure to be a hit among vaping enthusiasts across Australia,” the release states.

  • ANDS Develops 99 Percent Recyclable Vape Device

    ANDS Develops 99 Percent Recyclable Vape Device

    Fadi Maayta | Image: Tobacco Reporter archive

    ANDS has created a disposable vape that is 99.29 percent recyclable, according to Waste Experts, reports UKVIA.

    Slix is constructed of an outer casing made of 100 percent recyclable high-grade cardboard with a biodegradable silicone mouthpiece and end piece.

    “While the analysis carried out by Waste Experts suggests that our single-use vape is highly recyclable, we will continue to work toward zero waste,” said Marina Murphy, senior director of scientific and medical affairs at ANDS. “We aim to build a high rate of recyclability into all our products by using high-quality recyclable materials and simple construction that allows for highly efficient dismantling. This contributes to a fast, efficient overall recycling process, which reduces waste management costs. This in turn helps to keep product prices competitive, creating a win-win for the environment and adult consumers who value our products.”

    “We’re very much on a journey, and by the end of this year, we hope to launch a 100 percent recyclable and recoverable version of Slix, which will reduce the tonnage of waste going to landfill even further,” said Fadi Maayta, president of ANDS. “If these single-use vapes are restricted or banned over environmental fears as is being talked about in some circles—smokers could lose what many believe to be a very convenient, accessible and compelling alternative to conventional cigarettes.”

    ANDS is partnering with Waste Experts to create a recycling program.

  • Kaival Releases Details of GoFire Patents Deal

    Kaival Releases Details of GoFire Patents Deal

    Kaival Brands Innovations Group provided additional details of its recently acquired extensive patent portfolio from GoFire as it looks to expand its current product offerings to explore near-term and long-term revenue opportunities, according to GlobeNewswire.

    In the near term, Kaival Brands expects to seek third-party licensing opportunities in the cannabis, hemp/CBD, nicotine and nutraceutical markets as a means of monetizing its new patents. Longer term, the company believes it can utilize the acquired patents to create innovative and market-disruptive products for its growing base of adult consumers, including patent protected vaporizer devices and related hardware and software applications.

    The consideration for the purchased patents consisted primarily of Kaival Brands equity securities, consisting of common stock, newly designated Series B Preferred Stock and a warrant to purchase common stock. Importantly, in certain key aspects, the equity consideration was structured in a forward-looking manner with valuations or exercise prices struck at premiums to the current market price of Kaival Brands’ common stock. The weighted price per share of the common stock issued and the common stock underlying the Series B Preferred Stock was $1.53 per share on the May 30 closing date, accompanied by warrants with exercise prices ranging from $3 and $6.

    Included in the acquired technologies are patented systems and methods that are designed to overcome common issues regarding reliability and consistent dispensing over the entire life of a cartridge or reservoir as well as improvements to the vaporizing chamber to ensure complete vaporization with minimum residue.

    The acquired patent portfolio includes the following: Bluetooth Child Safety App and Mechanical Cartridge Protection; Controlled Delivery; Flavor Delivery and Experience to Last Puff; Leak Proof Design and Removal of Cutting Agents; Authentication System/Counterfeit Protection; Dry Puff Protection; 510 and Pod Compatibility; Product Remaining Indicators; and MHRA Requirements.

    The GoFire patent portfolio includes 12 existing patents and 46 pending applications with novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia, Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.

    The acquired assets are housed in Kaival Labs, a wholly owned subsidiary of Kaival Brands, which develops new branded and white label products and services in the vaporizer and inhalation technology sectors.

  • Philter Gets $1 Million Investment For Vape Future

    Philter Gets $1 Million Investment For Vape Future

    Image: Tobacco Reporter archive

    Philter Labs secured an AUD1 million ($675,376) investment from Atayf Investments and a warrant for an equivalent investment by the end of 2023, according to PR Newswire. Btomorrow Ventures, the venture capital arm of BAT, originally led the financing round. The allocated funds will further propel R&D initiatives within the company. They will also back the introduction of a heat-not-burn device designed specifically for organic substrates with the ability to eliminate secondhand smoke.

    Atayf Investments is the Family Office investment group associated with Charlie (Khalil) Shahin AO, managing director of Peregrine Corp. Peregrine operates the On the Run brand of service stations and convenience stores in South Australia; this privately owned Australian company has a broad reach. It also manages Smokemart and GiftBox tobacconists vape and other retail stores throughout Australia.

    Charlie (Khalil) Shahin AO, CEO of Peregrine, said, “We are excited about our investment in Philter. Their unique technology and products address consumer trends in vaping and smoking. I’m especially impressed with the caliber of the management team and their vision to address the secondhand smoke issues.”

    Philter holds nine granted utility patents and has filed over a dozen additional patents for advanced technologies that miniaturize the filtration footprint. These patents enable Philter technology to be ubiquitous within any vaping device and any form factor for combustibles.

    Philter CEO Christos Nicolaidis added, “We are thrilled about this strategic investment from Atayf Investments Pty Ltd. This relationship expands the global reach of our current products in areas where Peregrine has a strong retail footprint. We are excited about advancing our proprietary technologies that will be very disruptive to the smoking and vaping markets that are growing at 14–27 percent CAGR, based on independent industry research.”

  • Pure Spectrum Signs CBD Deal With Kansas City Royals

    Pure Spectrum Signs CBD Deal With Kansas City Royals

    Vapor Voice Archives

    A new partnership with a cannabis brand to promote education about the potential therapeutic benefits of CBD has been formed by the Kansas City Royals—the second Major League Baseball (MLB) team to do so.

    The Missouri-based team announced last week that it has joined forces with Pure Spectrum CBD, a company that produces hemp-derived cannabidiol products like oils and gummies, according to Marijuana Moments.

    This is the second MLB team to embrace the cannabis space, coming just two months after the Chicago Cubs teamed up with the CBD sparkling beverage brand MYND DRINKS.

    MLB itself announced its league-wide partnership with a popular CBD brand last year. Charlotte’s Web Holdings, one of the most recognizable hemp-derived CBD companies, signed the deal with the league to become the “Official CBD of MLB.”

    “The Kansas City Royals are proud to be just the second MLB team to form a partnership with a company like Pure Spectrum,” Sarah Tourville, the team’s executive vice president and chief commercial & community impact officer, said in a press release. “For this organization, this opportunity gives us a chance to support a brand with Kansas City ties and to educate the community on the benefits of CBD.”

  • Flavor Bans for Vapor and Heated Tobacco to Grow

    Flavor Bans for Vapor and Heated Tobacco to Grow

    man holding flavored vape products

    Bans on flavors in vapor and heated tobacco are likely to spread.

    By Barnaby Page

    Flavors are perhaps the biggest battleground of all in e-cigarette regulation—much more so than nicotine strength, for example. That may seem surprising on the surface given the widespread misperceptions of risk associated with nicotine itself (as opposed to smoking), but the underlying reason is revealing. Although occasionally there are other rationales associated with flavor bans (specific harmful ingredients, or a racial dimension in the case of menthol in the United States), nearly always the argument against flavors is a proxy for anxieties over youth vaping.

    To put it another way, if nobody thought that anyone other than adults would use mermaid-flavored caramel candy floss e-liquid, nobody would be very interested in banning it (and in fact, adult usage of these flavors is almost completely overlooked in the debate). It’s because kids use—or, more precisely, are perceived to be attracted by—these flavors that regulators, politicians, pundits and pressure groups pay so much attention to them.

    Underage vaping undoubtedly occurs; this is indisputable. Whether flavors (which in regulatory terms means nontobacco flavors) are in fact a significant driver of this is more debatable. It’s true that young people often use the more exotic flavors, but that doesn’t mean the nicotine users among them wouldn’t vape if those flavors weren’t available.

    Of course, those who are vaping nicotine-free flavored liquids presumably wouldn’t find nicotine-free tobacco-flavored liquid very appealing, and they probably wouldn’t vape at all if their favored flavors were unavailable. But these nicotine-free users are not the main concern.

    Similarly, it’s true that kids say they like the flavors they use. But this is hardly unexpected; nobody would use a flavor they don’t like. Again, it doesn’t conclusively point to what would happen in the absence of flavors, and this is an area where more research is needed—research that will become more viable on a large scale as more and more flavor bans are implemented.

    The results may prove to be unexpected: for example, work by Abigail Friedman at Yale suggests that the San Francisco flavor ban may have pushed young people not toward tobacco-flavored vapes but toward combustibles, and while one research project in one city is of course not the end of the story, it underlines the importance of looking at the real consequences of regulation in this area. If flavor bans do not keep kids away from nicotine, there is little purpose to them.

    For now, though, limiting flavors is rightly or wrongly seen as key to limiting youth vaping, and prohibitions are spreading worldwide—perhaps not as quickly as the heat of the conversation might suggest but steadily nonetheless.

    The United States is in an unusual situation here, partly because of the considerable autonomy enjoyed by sub-national levels of government compared with many other countries and partly because of slow movement by the Food and Drug Administration. There can be almost no doubt that the FDA would like to ban flavors; after all, it has even backed the idea of a menthol ban in combustibles, which is far more contentious than any restrictions on e-cigarette flavors, and seems likely to be preparing to finalize a rule to that effect this fall.

    Where vapor is concerned, there is no formal prohibition as such (though it is always conceivable that the anticipated combustibles ban could in fact cover all tobacco products), but a de facto ban on vapor flavors seems to have been in operation via the premarket tobacco product application (PMTA) process. To put it bluntly, flavored products don’t get through, and indeed this has been formally alleged by R.J. Reynolds Vapor Co. in a case against the FDA, as yet unresolved.

    In this context, it might seem odd that the FDA did grant modified-risk tobacco product (MRTP) status to menthol-flavored IQOS products from Philip Morris back in 2020—MRTP of course being an overt acknowledgment of reduced risk, not merely an authorization to sell like the PMTA. This might reflect the fact that youth usage is much less associated with heated-tobacco products like IQOS than with vapor; in fact, heated tobacco was barely known in the U.S. in 2020, has worldwide generally given rise to much less anxiety over underage use and is generally not found in the more unusual, supposedly youth-friendly flavors. Or it might simply be an anomaly. Either way, the IQOS decision seems unlikely to be any kind of precedent for a softening of FDA attitudes toward flavored vapor.

    In the absence of an official FDA rule, formal regulatory activity against flavored vape products in the United States has most significantly occurred at state level—for example, with bans in California, New Jersey, New York and Rhode Island, an almost complete prohibition in Massachusetts and heavy restrictions in Maryland and Utah. Some other states also instituted emergency bans in 2019 that have now ended. There has also been much activity at county and municipal level (most notably in California and Massachusetts and to a lesser extent in Minnesota).

    Elsewhere in the world, again partly reflecting the allocation of powers to national and sub-national governments, there are countrywide bans.

    Among those nations that allow e-cigarettes as a product category but ban flavors, China is potentially the most important given its sheer size. However, the Netherlands—a country where skepticism over vapor in official circles is high—has also received much attention, not least because it could pave the way for other European countries to follow suit. Finland has already passed a bill prohibiting flavors in all inhalable products, and we believe Norway is also likely to enact a vapor flavor ban; Belgium is another possibility, though one we consider less likely.

    Much of the forecasting in this article is drawn from the Tamarind Intelligence Policy Radar, which presents the regulatory situation in more than 50 markets for alternative tobacco products as it is today and as it is projected to be in five years. It monitors more than 150 bills and policies, many of which seek to substantially increase the regulatory burden on novel tobacco and nicotine products. Based on this, other countries where we see a vapor flavor ban as possible include Canada and Argentina, although the latter is a less likely contender.

    Other countries have taken steps toward banning flavors in all alternative products. Nations such as Spain, Belgium, Russia and the Czech Republic have raised concerns about flavors in new tobacco and nicotine products in their policies, which include, for example, national tobacco plans and health strategies. However, it should be noted that we forecast some of these first steps toward a flavor ban to have a low likelihood to medium likelihood of adoption. This may be because the measure has not been a pressing issue for a government faced with elections in the near future, as with Spain, or because the policy has remained stuck in the legislative process for years, as is the case with the bill in Belgium.

    Comprehensive bans like these could be expected to also cover heated tobacco. Some countries, however, may choose to treat it separately; among these, we think a ban is likely in Taiwan and possible in the United States.

    In terms of sheer number of countries, however, by far the most important limitation on heated-tobacco flavors is the European Union ban, which entered into force late last year via a European Commission directive.

    Such directives do not have automatic legal power in all 27 EU member states, but the individual countries are obliged to incorporate them into domestic law, a process known as “transposition,” which must in this case be completed by October (and which also applies to the European Economic Area members Norway, Iceland and Liechtenstein). When this is complete (and though the deadline could be missed in some cases, it will almost certainly be completed), heated-tobacco flavors will be banned across most of Europe, leaving the post-Brexit United Kingdom—the most friendly of all European nations toward reduced-risk nicotine products—as the major outlier where flavors are still permitted.

    In this context, the ongoing revision of the EU Tobacco Products Directive (TPD) itself is also noteworthy. It was the 2014 version of the TPD that laid the groundwork for the e-cigarette regulatory frameworks in all EU member states (at that point including the U.K.), for example with limitations on nicotine strength, and with the next incarnation of the directive currently being drawn up, there is at the very least a possibility that it could include a flavor ban for alternative products, including vapor.

    If that happens, it might well be enough to sway undecided countries outside the EU and persuade them to enact their own flavor bans—perhaps even the U.K. It is also possible that, amid environmental concerns about the sudden rise of disposables, “flavor” will become a proxy for “disposable” in exactly the same way it has been for “underage.”

    At the same time, it is always conceivable that some yet unknown nicotine-delivery technology might escape these prohibitions if there are no concerns about youth usage.

    But it is unlikely that bans that do come into force will be reversed, regardless of their outcomes; perception is often as important as reality in regulating this area. Though it hasn’t happened yet, the alternative nicotine products sector may be facing a flavorless future.

    Barnaby Page is the editorial director of Tamarind Intelligence, the publisher of ECigIntelligence, TobaccoIntelligence and CannIntelligence. As a journalist, he has been covering the worldwide reduced-risk nicotine sector since 2014, with a particular focus on public health and regulatory issues.In his current role, he manages Tamarind’s editorial and reporting teams, producing a wide range of nicotine-related content. He previously spent 30 years as a reporter and editor for newspapers, magazines and online services, specializing in technology and business. He is based near London, England.

    Tamarind Intelligence analysts Berta Camps Bisbal and Sergi Riudalbas also contributed research to this article.

  • Group: Debt Ceiling Could Limit U.S. FDA’s Budget

    Group: Debt Ceiling Could Limit U.S. FDA’s Budget

    Image: Tobacco Reporter archive

    The proposed debt ceiling budget could stress the U.S. Food and Drug Administration’s budget, according to Inside Health Policy.

    The legislation’s nondefense federal funding cap makes it harder for programs like the FDA’s budget to get funding increases, and it could threaten some agencies’ existing funds, according to Steven Grossman, director of the Alliance for a Stronger FDA. “This is never a good situation for agencies whose mission and responsibilities keep expanding each year, as is the case with FDA,” he wrote.

    The Fiscal Responsibility Act of 2023 caps nondefense federal spending at $704 billion for the next two years. According to Grossman, after taking out funding for Veterans Affairs medical care and appropriations adjustments, the remaining nondefense funds are about $637 billion, which is roughly unchanged from fiscal 2023.

    There is still room to determine how much funding can be specifically allocated to the FDA, though, according to Grossman, despite the FDA’s funding being limited by the macro-budgetary levels determined by the debt ceiling.

    “FDA’s mission and responsibilities are incredibly consequential and visible,” he wrote. “It needs resources to protect public health and safety and to set standards for products that encompass 20 percent of all consumer spending (about $2.7 trillion).”

    The House GOP’s FDA funding bill cleared the Appropriations FDA-agriculture subcommittee last month; it would provide $6.6 billion in total funding with $3.5 billion in flat discretionary funding.

  • Nine Groups Sign Letter to End Tobacco Prohibitions

    Nine Groups Sign Letter to End Tobacco Prohibitions

    Image: Tobacco Reporter archive

    Nine advocacy groups, including Americans for Tax Reform, have signed a letter supporting proposed legislation that would deny the U.S. Food and Drug Administration funds to implement its plans for nicotine levels and menthol flavors.

    Sections 768 and 769 of the Fiscal Year 2024 Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations bill ensure that no funds provisioned by the bill can be used to implement a maximum nicotine level for cigarettes, to prohibit menthol flavors for cigarettes or cigars or other special flavors for cigars.

    The letter notes the impact that tax hikes and bans can have on smuggling and organized crime and warns about a possible expansion of the black market. It also advocates for educating consumers to better empower them to make educated choices.

    “The protections included in Sections 768 and 769 of this bill would prevent overreach by regulators that would have significant negative impact on taxpayers, farmers, retailers, consumers, manufacturers, state and local governments and supply chains across the country,” the letter states.

  • Affordable Vape Products May Temper Black Market

    Affordable Vape Products May Temper Black Market

    Credit: Yehuda

    A study conducted by researchers at Johns Hopkins University suggests that if regulators limit the nicotine content of cigarettes, people may turn to illegal sources to buy full-nicotine cigarettes, reports Filter. However, the availability of affordable vape products could deter this shift to the illicit market.

    The study found that nicotine vapes, which are believed to be less harmful than cigarettes, played a crucial role in people’s choices. When vapes were priced lower than illegal cigarettes, they were purchased to a greater extent, according to the study. Restricting nicotine content alone could lead to an increase in black market cigarette purchases, but making e-cigarettes more affordable could reduce combusted cigarette consumption, the authors suggested. The study emphasizes the importance of regulating vaping products alongside reducing nicotine in smoked tobacco.

    The findings suggest that a mandate requiring all cigarettes to have low nicotine content may be unnecessary if the right policy environment is established, including favorable taxation and diverse smoke-free alternatives.

  • Kaival Brands Appoints James Cassidy to Board

    Kaival Brands Appoints James Cassidy to Board

    Kaival Brands Innovations Group appointed James P. Cassidy as a new member of its board of directors, according to a press release.

    Cassidy joins the board of directors as part of Kaival Brands’ recently announced acquisition of an extensive vaporizer and inhalation technology patent portfolio from GoFire. Cassidy is an investor in, and serves as board advisor to, GoFire.

    “We are excited to announce Jim Cassidy as our newest independent director,” said Eric Mosser, chief operating officer, president and a director of Kaival Brands. “Jim’s background as a private equity investor and advisor to growing companies not only in the tobacco space but within the consumer and healthcare spaces will be of tremendous value as we look to expand into new verticals and opportunities following our GoFire patent portfolio acquisition.”

    Cassidy currently serves as the founder and CEO of Preposterous Holdings, a family-run private equity firm with offices in Asheville, North Carolina, USA, which he established in 2013. Cassidy has over 25 years of extensive experience and expertise as a private equity investor and advisor across several industries, including the key areas of tobacco, healthcare, consumer packaged goods and technology.

    Prior to his current roles, from 2000 to 2007, Cassidy was partner in the Strata Group, a wealth management advisory group at Smith Barney. He started his career in 1983 at UST, a tobacco business holding company, working in various roles in the government relations department and as director of corporate services.