Author: Staff Writer

  • China Rules Make Shops Close, Black Market Growing

    China Rules Make Shops Close, Black Market Growing

    Before China’s national standards were implemented, vape shops were growing rapidly throughout the country. (Photo: Timothy S. Donahue)

    China’s National Standard for Electronic Cigarettes have begun, however, a reporter from Beijing Youth Daily claims many businesses still secretly sell the “fruit flavor” that has been banned from sale, a Chinese news outlet claims.

    The report also states that after the implementation of the national standard several vape shops have closed. A reporter from Beijing Daily visited some e-cigarette sales stores or brand counters on October 2 and found that a small number of stores had been closed, and the words “transfer” were also posted.

    In stores that are still in operation, only an estimated six brands of vaping products are on display, and there only two or three varieties of products. Some stores have seen the increased sale of combustible tobacco products.

    China’s ban on flavored vapor products went into effect on Oct. 1 along with other new vaping product standards that were decided on earlier this year.

    In November 2021, Chinese law was amended to bring the vapor industry under control of the State Tobacco Monopoly Administration, which regulates China’s tobacco products.

    Products meant for export will not have to meet Chinese standards unless the destination country does not have its own specific standards.

  • Colorado: State Cannot Sue Juul Labs Executives

    Colorado: State Cannot Sue Juul Labs Executives

    Credit: Wirestock

    The Colorado Supreme Court ruled last week that the Colorado Attorney General Office’s lawsuit against electronic cigarette manufacturer Juul Labs cannot include four of the company’s executives.

    The AG’s Office hoped to hold both the company and the four executives liable for alleged deceptive marketing practices which targeted adolescents and teens.

    Colorado filed its lawsuit against the company in 2020 after a yearlong investigation into the company’s advertising downplaying its products’ nicotine concentration and claims that the product was a healthy alternative to traditional cigarette smoking, according to CBS News.

    In the ruling, Justice Richard L. Gabriel wrote that the AG’s Office’s prosecutors provided “no facts supporting a conclusion that any of the defendants expressly aimed their conduct at Colorado.”

    Six of the seven state justices were in agreement with the ruling. The seventh did not participate in the decision.

    “Had the record shown that these defendants individually targeted Colorado, among other states, then our conclusion might have been different,” Gabriel wrote.

    The ruling reversed a district court decision which rejected a request for dismissal by the executives’ attorneys.

  • Scotland Urged to Rethink Vape Ad Restrictions

    Scotland Urged to Rethink Vape Ad Restrictions

    Photo: jazrotorman

    The U.K. Vaping Industry Association (UKVIA) has called on the Scottish government to reconsider its proposal to tighten advertising restrictions on vaping.

    The call follows the publication of the outcomes of the government’s consultation on the plan. According to the UKVIA, the feedback from the consultation, which involved the input of individuals, local authorities, public health organizations and the vaping community, clearly shows that there is no majority of support for the recommendations put forward by the government, instead dividing opinions and leaving more questions than answers on the future of vaping regulations.

    At the time the consultation went live, the UKVIA warned that the Scottish government’s proposals could derail the country’s 2034 smoke-free ambitions and that its stance is “in denial of the facts,” creating a significant risk to the health of people of Scotland looking to quit smoking as well as more uncertainty around vaping caused by misinformation.”

    The proposals that were put forward only sought to further conflate vaping with combustible tobacco products by aligning advertising and promotion rules to existing restrictions on tobacco products.

    John Dunne, director general, UKVIA

    The UKVIA’s position was echoed by the Scottish Grocer’s Federation, which stated that the Scottish government’s move was unjustified and failed to appreciate the potential benefits of vaping products.

    Many proposals put forward by the government generated 50-50 responses, and a number resulted in more respondents disagreeing than agreeing with them. These included proposals to ban in-store promotional displays, to make free distribution and nominal pricing of vaping products an offense and to make sponsorship agreements in respect to vaping products an offense. A higher proportion of respondents indicated that the proposed policy would have a negative impact on individuals (50.5 percent who felt it would versus 36.9 percent who didn’t) and on those with socioeconomic disadvantages (48.6 percent versus 25.5 percent).

    “The proposals that were put forward only sought to further conflate vaping with combustible tobacco products by aligning advertising and promotion rules to existing restrictions on tobacco products,” said John Dunne, director general of the UKVIA, in a statment.

    “Only by working with others, following the evidence and listening to people’s testimonies can we succeed in the goal of tobacco harm reduction.

  • European Vape Alliance Opposes Dutch Flavor Ban

    European Vape Alliance Opposes Dutch Flavor Ban

    Photo: Wirestock

    The Independent European Vape Alliance (IEVA) has expressed concerns about the Draft Amendment of the Tobacco and Smoking Products Order for regulation of e-cigarette flavors presented by the Dutch Ministry of Public Health, Welfare and Sports.

    According to the statement submitted by the Dutch authorities, the draft amendment intends to ban flavors other than tobacco in e-liquids in order to “reduce the temptation for young people and former smokers to purchase e-cigarettes.” The measure, authorities note, is “justified by the need to protect public health.”

    The proposal also suggest that the Netherlands will be more likely to achieve its objective of a smoke-free generation by 2040 if e-cigarettes are rendered less attractive.

    According to the IEVA, the proposed flavor ban is neither proportional nor necessary, as it is too strong a measure for the objective it seeks to achieve and fails the EU requirement that member states choose the means that least restricts the free movement of goods.

    The IEVA insists that the ban will boost black market activity and jeopardize  tens of thousands of jobs, while leading to a reduction in government revenues by reducing tax collection.

  • PMI Argues IQOS Ban Hurts Smokers Trying to Quit

    PMI Argues IQOS Ban Hurts Smokers Trying to Quit

    Photo: librakv

    The U.S. International Trade Commission (ITC) should have consulted more with the Food and Drug Administration before banning IQOS imports, lawyers for Philip Morris International argued before an appeals court panel on Oct. 3, according to Reuters.

    In September 2021, the ITC upheld an initial determination from May 2021 that PMI’s IQOS device infringes on two patents owned by BAT subsidiary Reynolds American Inc. (RAI). The agency then instituted an import ban and a cease-and-desist order preventing IQOS consumables and devices from being sold in the U.S.

    PMI has challenged the import ban in court, arguing among other things that the ban deprives American smokers of nicotine products that are less unhealthy than cigarettes.

    The case is part of a global patent dispute between RAI’s parent company British American Tobacco and tobacco giant Altria Group, which separated from PMI in 2008 and is the exclusive distributor of IQOS in the United States.

    A North Carolina jury awarded Altria won $95 million last month on claims that RAI’s Vuse e-cigarettes infringed its patents. In a separate case over RAI’s Vuse line, PMI won more than $10 million from a Virginia jury.

    RAI sued Philip Morris at the ITC in 2020. Its related patent case against PMI in Virginia is on hold.

    In July 2020, the FDA granted IQOS modified-risk orders, allowing Altria and PMI to tell consumers that the product generates lower levels of harmful chemicals than traditional cigarettes, among other claims.

  • States Urged to Use Juul Settlement for Prevention

    States Urged to Use Juul Settlement for Prevention

    Photo: gawriloff

    Medical groups are urging the U.S. states that recently won a case against Juul Labs to use the money for tobacco prevention and cessation programs, according to Pew. The court case ended in a $438.5 million settlement.

    The deal, which resolved an investigation by 33 states into Juul Labs’ marketing practices, requires Juul to pay states over six years to 10 years, prohibits Juul from further marketing to young people, limits where Juul products can be sold and advertised, bans flavors that haven’t been approved by the U.S. Food and Drug Administration and prohibits free samples and brand-name merchandise marketing.

    Groups, including the Campaign for Tobacco-Free Kids (CTFK), the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association, Americans for Nonsmokers’ Rights and the Truth Initiative, called on the states involved in the settlement “to both build on the successes of the historic 1998 Master Settlement Agreement with the tobacco industry and avoid some of the mistakes that were made.”

    The groups cited a CTFK report showing that of the $27 billion that states collected from tobacco settlements and taxes in fiscal 2022, only 2.7 percent was spent on programs to prevent kids from smoking and help smokers quit.

    Several attorneys general have expressed intent to use the Juul settlement money for smoking prevention and cessation programs. The health groups urged the officials to “translate that admirable intention into a firm commitment expressed in the text of the final agreement.”

  • Another Report Finds Vape Less Risky Than Smoking

    Another Report Finds Vape Less Risky Than Smoking

    Photo: Prostock-studio

    Using vaping products rather than cigarettes leads to a substantial reduction in exposure to toxicants that promote cancer, lung disease and cardiovascular disease, according to new research from the Institute of Psychiatry, Psychology and Neuroscience at King’s College London.

    Commissioned by the Department of Health and Social Care’s Office for Health Improvement and Disparities, the independent report represents the most comprehensive review of the risks of vaping to date. It found that, while vaping is not risk free—particularly for people who have never smoked—it poses a small fraction of the health risks of smoking in the short to medium term.

    The report reviewed many aspects of vaping, including who is vaping and what products, the effects on health (both absolute and compared with smoking) and public perceptions of harm. The authors examined studies of biomarkers of exposure (measures of potentially harmful substance levels in the body) as well as biomarkers of potential harm (measures of biological changes in the body) due to vaping or smoking.

    The strongest evidence came from biomarkers of exposure. An exploration of the available studies found that levels of tobacco specific nitrosamines, volatile organic compounds and other toxicants implicated in the main diseases caused by smoking were found at significantly lower levels in vapers. Among vapers, overall levels of nicotine were lower or similar to smokers.

    When comparing biomarkers between people who vape and people who don’t smoke or vape, they were often similar, but in some cases there was higher exposure when vaping. The investigators therefore concluded that whilst less harmful than smoking, vaping is likely to sustain some risks particularly for people who have never smoked.

    While the investigators are clear on the benefits of vaping vs smoking, they found that public perceptions are lagging behind. In 2021, only 34 percent of adults who smoked accurately perceived that vaping was less harmful than smoking, while only 11 percent of adult smokers knew that nicotine wasn’t the primary cause of the health risks connected to smoking tobacco.

    Vaping has gained popularity among British adults. According to the latest data from the Action on Smoking and Health (ASH) Smokefree GB Adult survey, current vaping prevalence is 8.3 percent in 2022, compared with 7.1 percent in 2021 and 6.3 percent in 2020.

    Vaping has also increased among young people. Data from the ASH Smokefree GB Youth survey of 11-to 18-year-olds in England show that current vaping prevalence (including occasional and regular) is 8.6 percent in 2022, compared with 4.0 percent in 2021 and 4.8 percent in 2020. Use of disposable vaping products has increased substantially over the last year. Vaping among young people who have never smoked remains very low at 1.7 percent.

    “This important study is the latest in a series which carefully pulls together the science on vaping to help reduce the damage from smoking,” said Jeanelle DeGruchy, deputy chief medical officer for England, in a King’s College press note.

    “Vaping is substantially less harmful than smoking so the message is clear, if the choice is between smoking and vaping, choose vaping. If the choice is between vaping and fresh air, choose fresh air.”

  • Azerbaijan Sets Excise Tax Rate for Vaping Products

    Azerbaijan Sets Excise Tax Rate for Vaping Products

    Credit: ArtEvent ET

    Azerbaijan has determined its excise rate for vaping and other e-cigarette products, according to media reports.

    The Cabinet of Ministers has made relevant changes to the “Excise duties for imported excise goods into the Republic of Azerbaijan,” according to Today.az.

    An excise tax rate of 14 manat ($8.20) has been set for 1,000 units of the product.

    The corresponding decision will enter into force 30 days after its publication.

  • Altria Ends Non-Compete Agreement With Juul Labs

    Altria Ends Non-Compete Agreement With Juul Labs

    Altria sign

    Altria Group on Friday said it had exercised the option to be released from its non-compete deal with Juul Labs. The move comes nearly four years after the tobacco giant purchased a 35 percent stake in the e-cigarette manufacturer that at the time was dominating the market.

    Altria is looking to permanently terminate its non-competition obligations to Juul Labs, give up certain rights including its board designation rights and reduce its voting power, according to a 8-K filing to the Securities and Exchange Commission.

    The filing states Altria has exercised its option to permanently terminate its non-competition obligations to Juul Labs, losing the right to the board designation and significantly reducing its voting power, according to Barron’s.

    “This decision … increases the financial and strategic options we can pursue to secure our business and address the impact of the (U.S. Food and Drug Administration’s) now stayed [marketing denial] order,” a Juul spokesperson said.

    In July, Altria slashed the value of its stake in Juul to $450 million, down from the original value of $12.8 billion, allowing itself the option to be released from the non-compete clause and invest in or engage with any other e-cigarette manufacturers.

    However, it did not seek to be released from the obligations at the time, and said it saw value in its investment rights in Juul. “The decision to terminate our non-compete maximizes our flexibility to compete in the e-vapor space while maintaining our economic interest in Juul,” Altria said on Friday.

    A change in its stance means Altria could go it alone or pursue other vaping products. Privately owned Njoy, which has already survived the FDA’s controversial premarket tobacco product application (PMTA) process, could be a takeover target for Altria, according to some analysts.

    In July of this year, NJOY Holdings Inc hired bankers for a possible sale of the company. The news report stated that privately held NJOY was likely to be valued at up to $5 billion.

    “It’s more likely that Altria will seek to buy its way back into the e-cigarette category (which represents 7 percent of U.S. nicotine sales),” Cowen analyst Vivien Azer said.

  • GTNF 2022: BAT’s Wheaton Calls for More Unity in THR

    GTNF 2022: BAT’s Wheaton Calls for More Unity in THR

    Stakeholders in the vaping and tobacco industry must work together in their efforts to end combustible cigarette use. During the 2022 Global Tobacco and Nicotine Forum (GTNF), Chief Growth Officer for BAT, Kingsley Wheaton, said greater collaboration is needed between the industry, governments, and intergovernmental organizations to accelerate tobacco harm reduction (THR) policy.

    “We must provide adult consumers with a portfolio of products that are a better choice than cigarettes. And, so that consumers are able to make informed decisions about those choices, public health needs to accurately communicate risk, while the industry should be able to responsibly communicate the benefits of switching via appropriate marketing freedoms,” Wheaton told the estimated 289 conference attendees.

    BAT estimates that it will have helped 50 million adult smokers to switch to less harmful non-combustible nicotine products by 2030, according to Wheaton. The company is also investing heavily in research and development, including its state-of-the-art Innovation Hub in Trieste, Italy, and conducting industry-leading science. One recent BAT study showed smokers who switched exclusively to BAT’s glo product saw significant and sustained improvements in several indicators of potential harm.

    “The results from this study represent the most important data we have ever generated about glo in particular, and for the tobacco heating product category in general,” Wheaton said. “But this alone is not enough. Our voices cannot, should not and must not be the only one in this debate.”

    The keys to unlocking the total transformation of the industry, and positively impacting public health outcomes, according to Wheaton, were:

    • Continue to produce robust and accessible science – science is key to unlocking industry transformation, and cannot be done by industry figures alone. The voice of global public health scientists validating the role of tobacco harm reduction is needed.
    • Maintain the combination of insights and innovation – marrying the science of tobacco harm reduction is necessary to build A Better Tomorrow. Ultimately, it is the consumer that will decide which products they use.
    • Let trusted brands drive change responsibly – in Vuse and glo, BAT has created two billion-dollar brands2 which are signposts for quality. Freedoms to responsibly inform adult smokers about the potential benefits of these products compared to smoking are key to delivering tobacco harm reduction.
    • Transition from the old tobacco control approach of “quit or die” to sustainable change – where appropriate tobacco harm reduction policies have been adopted, such as in the UK and Japan, smoking rates have reduced.
    • Embrace change and progression – fostering engagement between governments, intergovernmental bodies and industry figures is necessary to facilitate the exchange of crucial knowledge and data.

    BAT has a strong presence at GTNF 2022. Alongside Wheaton, BAT leaders sharing insights into how science, technology and innovation are driving forward BAT’s progress include David O’Reilly, director of Scientific Research; Carlista Moore Conde, group head of New Sciences; Sharon Goodall, group head of Regulatory Science; and Flora Okereke, head of Global Regulatory Insights and Foresights.

    “Perhaps the greatest change we’ve seen as an industry is the emergence of reduced-risk products,” Wheaton said. “As a result, reducing the health impact of our business has, for some time, been BAT’s North Star … Together, all stakeholders have a responsibility to make a difference, in a whole-of-society approach.”