Author: GTNF Trust Staff

A retailer in Northland, New Zealand, has been “astounded” by the growth in sales of electronic cigarettes since tobacco prices increased by 10 percent on January 1, according to a story in the New Zealand Herald.

The retailer, who spoke anonymously, described the cigarette substitutes as “the best thing I’ve ever sold”.

“I’m astounded at how many people are buying them, and at how many people are giving up smoking using them,” the retailer said. “It’s a quiet little revolution.”

Newlove quoted too Holly Bognar, who said she had smoked for most of her life from about the age of 13, apart from when she was pregnant.

“I’d always gone back to it,” the 38-year-old said.

“I was heavily smoking until four months ago and now I don’t at all, not even when I drink alcohol, I’ve transitioned to e-cigarettes.”

Bognar described how electronic cigarettes were less expensive than were traditional cigarettes, after the initial outlay for a device, which, in her case, was about $65. E-liquid, which lasted a couple of weeks retailed for about $10, whereas 30 g of tobacco, which lasted for about five days, retailed at $55.

The UK smokers’ group Forest has condemned a call to ban the use of electronic cigarettes in bars and restaurants.

Responding to reports that the British Medical Association (BMA) wants the use of electronic cigarettes banned in enclosed public places to avoid the risk of ‘passive vaping’, Forest director Simon Clark said the BMA had taken leave of its senses.

“E-cigarettes are often used by smokers who are trying to quit,” he said.

“Banning vaping would be counter-productive because it would completely undermine the number one reason for switching to e-cigarettes.

“There’s no evidence that ‘passive vaping’ is a risk to anyone so bars and restaurants must be allowed to decide for themselves what their policy is.”

Clark said that once again the BMA had underlined its prohibitionist tendencies.

“Doctors should disown this ridiculous organisation before it brings the medical profession into disrepute,” he added.

The Macau Health Bureau has said that vapor and electronic cigarette products are not less harmful than are traditional cigarettes, and that electronic cigarettes should not be considered as an alternative to traditional cigarettes, according to a story in the Macau Business Daily.

The bureau was attempting to defended its proposed ban on local sales of electronic cigarettes that forms part of an amendment being made to Macau’s tobacco control law.

Lei Chin Iao, director of the bureau, was quoted as saying that the nicotine level of electronic cigarettes could be higher than that of conventional cigarettes.

He seemed to imply that the variety and changing nature of electronic cigarettes made it difficult for the bureau’s staff to keep tabs on these products’ contents.

And he was concerned that children might be able to obtain electronic cigarettes.

The amended bill, which is now being reviewed by the second permanent committee of the Legislative Assembly, suggests a blanket ban on electronic cigarette sales.

Meanwhile, the bill proposes also a smoking ban in the city’s casinos, which some analysts have estimated would shave another 10-15 per cent off Macau’s already pressured ‘VIP revenue’.

National and state trade associations representing the e-cigarette industry filed suit against the U.S. Food and Drug Administration (FDA) over new regulations that the advocates contend will push innovative products out of the market.

The plaintiffs in the suit, filed by Keller & Heckman, include the Right to be Smoke-Free Coalition, American E-Liquid Manufacturing Standards Association, American Vaping Association and the Electronic Vaping Coalition of America, among others.

The challengers claim the FDA’s new rule “sets forth obligations that reach far beyond any reasonable level of regulatory oversight and imposes requirements that are unlawful in their nature and scope.”

Regulators consider vapor products a “tobacco product” under the Tobacco Control Act. The FDA contends the regulatory framework will “prevent misleading claims by tobacco product manufacturers, evaluate the ingredients of tobacco products and how they are made, as well as communicate their potential risks.”

The “tobacco” designation doesn’t fly with e-cigarette manufacturers and distributors.

“The agency adopted a ‘one-size-fits-all’ approach even though Congress was clear in the [Tobacco Control Act] that the agency should use its regulatory authority in a flexible manner that recognizes the continuum of risk presented by different tobacco products,” the complaint, filed in Washington federal district court, said. “This is evidenced by the fact that FDA was directed to ensure that adults continue to have access to tobacco products, particularly newer, more innovative products that present less health risk than traditional ones.”

The complaint alleges the FDA’s regulatory scheme “will all but guarantee, in a direct challenge to Congress’ wishes, that the vast majority of such products will be forced to exit the market over the next two years.”

A spokesman for the FDA, citing the pending case, declined to comment. In May, when the FDA rolled out the new rule, Sylvia Burwell, the Health and Human Services Department secretary, said the rise of e-cigarettes “is creating a new generation of Americans who are at risk of addiction.” Burwell said the e-cigarette regulations would “help us catch up with changes in the marketplace.”

The challenge to the regulations is at least the second filed recently in Washington, DC. In May, Covington & Burling filed suit for Nicopure Labs. That complaint called the scope of the FDA’s e-cigarette regulations “staggering.”

As June 2016 marks the US Department of Housing and Urban Development (HUD)’s First Annual National Healthy Homes Month, Fontem Ventures is highlighting the role of Electronic Vapor Products (EVPs) in advancing one of the month’s key goals: making homes free of tobacco smoke. EVPs provide the nicotine that smokers desire without the tar, smoke, or secondhand smoke generated by cigarettes that burn tobacco.

As noted by the U.S. Centers for Disease Control (CDC), “the dangers of exposure to secondhand smoke are real – secondhand smoke kills more than 400 infants from Sudden Infant Death Syndrome and about 41,000 nonsmoking adults from heart disease and lung cancer each year.” The CDC also notes that about 58 million nonsmokers in the U.S. are exposed to secondhand smoke, some of which occurs in homes.

Public health experts have concluded that EVPs pose no risk to bystanders. [See: BioMed Central (2014); International Journal of Environmental Research and Public Health (2014); Nicotine and Tobacco Research (2013)]

“As many experts have agreed, EVPs provide the potential to make a significant public health benefit by providing smokers with an alternative that some studies have found to be up to 95 percent less harmful than products that burn tobacco,” said Marc Michelsen, Senior Vice President of Communications and Public Affairs at Fontem Ventures.

“When a smoker transitions from cigarettes to EVPs, they also help families and others in their home avoid the secondhand byproducts produced by cigarettes that burn tobacco,” Michelsen continued. “This advances HUD’s goal of promoting healthy homes.”

The National Healthy Homes Month program was developed to provide HUD with an opportunity to promote education about housing and its impact on health and provide resources to encourage local activities, as well as empower families to protect themselves from hazards in their home. The seven priorities of National Healthy Homes Month are childhood lead poisoning prevention, residential asthma intervention, injury prevention, smoke free public housing, safe indoor pest control, radon safety, and disaster recovery.

Dozens of e-liquid producers are being shut out of Indiana by a controversial state law that effectively makes a small security firm in Lafayette the vaping industry’s gatekeeper.

The impact, however, could extend well beyond producers. Retailers who must now find new sources for their product say the few producers who have been approved are charging much more, according to a story in the IndyStar. Ultimately, it is consumers who will have to pay higher prices, they say.

At issue are new regulations passed by state lawmakers in 2015 and revised earlier this year. The rules require any company that wants to produce e-liquid for sale in Indiana to be certified by a security firm by June 30.

The catch: So far only one security firm in the entire country qualifies to perform the work under the law – Lafayette-based Mulhaupt’s Inc. At this point, the company has approved only six producers, shutting out many existing competitors.

The law was billed as an effort to establish safety regulations for what had been a largely unregulated vaping industry. The law outlines specific conditions for manufacturing – that it occur in a clean room, for example – as well as requiring child-proof caps, detailed bottle labels and traceable batch numbers.on the products.

But now, critics are questioning why lawmakers would allow so few companies to dominate what had been a highly competitive market.

When asked if regulations were to force electronic cigarettes off the market entirely, 49 percent of U.S. respondents to a recent poll said they would go back to combustible cigarettes.

V2, one of the U.S.’ leading brands of electronic cigarette and vaporizer products, yesterday announced the results of a commissioned study examining electronic cigarette users’ reactions to the U.S. Food and Drug Administration’s decision last month to extend federal regulatory control to electronic cigarettes (and other products). Three hundred adult vapers across the U.S. were polled between May 16 and May 20.

As part of the FDA’s ruling, government approval of all electronic cigarette products and related consumables introduced to the market after February 15, 2007, such as e-liquid, is now required. These products must go through a formal approval process if they are to remain on the market and reports estimate that submitting an application for a single product approval could cost the applicant more than $1 million.

“Big Tobacco companies, with their virtually unlimited resources, benefit tremendously from an onerous and costly application process,” said Adam Kustin, V2’s vice president of marketing. “They have the ability to do it. And while our company is also well positioned, the smaller players in our category aren’t as fortunate. Some simply won’t be able to bring their products to market, while others will be forced to raise prices, further diminishing their competitiveness.

“Lastly, it’s important to recognize that Big Tobacco is under no obligation to submit any products for approval. They could accelerate the demise of the industry by simply withholding products from submission. Given the relative size of the e-cig industry to combustibles, I would say their motivation is low.”

When the survey respondents were asked what they would do if electronic cigarettes and e-liquid became harder to buy or more expensive, 36 percent said that ‘nothing would change’ and that ‘as long as they are available, I will buy them’. However, 34 percent said that they would vape less, while 18 percent said they would ‘vape less and smoke combustible cigarettes more’, and eight percent said they would switch back to smoking exclusively.

When asked if regulations were to force electronic cigarettes off the market entirely, 49 percent said they would go back to combustible cigarettes. Twenty-eight percent said they would stop consuming nicotine or tobacco products of any kind, and 17 percent said they would move to a smoking cessation method.

“E-cigs are ground-breaking technologies that offer an alternative to combustible cigarettes, which are harmful to millions,” said Kustin. “Almost half of respondents reported they’d return to combustible cigarettes if e-cigarettes were no longer available. The remainder said that they’d either use a cessation therapy such as nicotine gum, which we know doesn’t work; or they’d quit nicotine entirely, which is unlikely and unprecedented.

“In other words, if the FDA’s ruling hampers access or forces higher prices, it threatens to eliminate 99 percent of the industry, essentially driving vapers back into the eager arms of Big Tobacco. Such an outcome would be tragic, not to mention entirely inconsistent with the FDA’s earlier ‘continuum of risk’ rhetoric.”

Nicopure Labs, a leading manufacturer of American-made e-liquids, announced the appointment of Jim Caci to CFO. With more than 20 years of experience successfully managing risk, developing business strategy, leading the IPO process from start to finish, and building financial operations at private and publicly-held companies, Caci will be responsible for managing the strategy and growth of fiscal functions and operations at Nicopure Labs.

“I have become familiar with the Nicopure team over the last several years and have been impressed with their leadership position and success in the vaping industry,” said Caci. “As the industry continues to grow and go through major changes, I’m thrilled to be joining Nicopure at such an exciting time, and applying all that I have learned throughout my career to help contribute to the company’s long-term success.”

As the CFO, Caci will focus on developing performance measures and implementing tactical initiatives that support the strategic goals and long-term growth of the company. “Jim has earned himself a reputation globally as a financial operations expert in the technology industry,” said Jeff Stamler, CEO at Nicopure. “His professional know-how is the ideal match for our company’s relentless expansion and our commitment to maintaining high standards in all aspects of our business.”

Caci’s previous experience includes working as the CFO at Conductor, where he ran the company’s finance and administration, and AvePoint, where he helped build the company’s financial foundation and ran the finance and operations for all of the company’s global entities, across six continents. “Jim’s experience as the head of finance for two publicly held technology companies will give us a competitive advantage and unique insight where we are prepared for all possibilities,” said Stamler.

U.S. Food and Drug Administration (FDA) attempts to restrict flavors in vapor products were squashed by the Office of Management and Budget (OMB). The regulatory arm of the White House deleted language in a recently introduced “deeming rule” that would have removed flavored e-­cigarettes from the market until they had been authorized by the FDA, an edited version of the document shows, according to a story by Reuters.

As submitted by the FDA to the OMB, the rule gave a grace period for flavored products of only 90 days after the rule became effective. Proponents of vapor say the products can help people quit smoking and that flavors are a crucial element of what makes them attractive to adults seeking to quit. The FDA said in its original rule that evidence supporting such claims “is thus far largely anecdotal.” The rule requiring the ban was removed by the OMB,

The FDA provided pages of data and scientific studies in support of its plan, noting “a dramatic rise in youth and young adult use of typically flavored tobacco products, like e-cigarettes and waterpipe tobacco, and continued youth and young adult use of cigars.” The OMB deleted both the FDA’s planned policy and the rationale for the policy. A White House spokeswoman, Emily Cain, said the OMB “does not comment on changes made during the interagency review process.” The FDA also does not comment, FDA spokesman Michael Felberbaum said.

In its originally submitted rule, the FDA said it recognized that numerous flavored products would come off the market within 180 days of the rule’s publication “and that this will significantly impact the availability of flavored tobacco products at least in the short term.” But it said the move was important because tobacco products with characterizing flavors, including menthol but excluding tobacco flavor, were attractive to young people.

On May 5, the FDA announced a final rule extending its tobacco authority to include e-cigarettes, pipe tobacco, cigars and hookah. The rule becomes effective in early August. Under the rule, companies must seek marketing authorization for any tobacco product introduced after Feb. 15, 2007. The rule gives manufacturers a grace period of up to two years to submit marketing applications, during which they can continue to sell their products. They can sell them for an additional year while the FDA completes its review.