Author: Taco Tuinstra

  • Spain Asked to Rethink Vape Shop Ban

    Spain Asked to Rethink Vape Shop Ban

    Photo: Nito

    The Independent European Vaping Association (IEVA) has called on the Spanish government to reconsider a proposal to ban vape shops. According to the IEVA, the legislation under consideration would hand the entire electronic cigarette business to big tobacco companies.

    “Against all principles of EU law (proportionality, good regulation, good administration, fair competition and harmonization), the Spanish government has proposed to ban and close all vape shops across Spain (transferring the sale of electronic cigarettes and e-liquids to the state monopoly of tobacco shops and to prohibit all online sales,” the IEVA wrote on its website.

    According to the IEVA, these measures not only contravene EU rules on free competition and free movement of goods, but will also generate unemployment at a time or economic crisis. What’s more, the proposal will deprive vaper from personalized access to vaping products, forcing them to buy them at tobacco shops, which could temp them back to more risky combustible products, the group said.

    As part of the legislative process, Spain submitted a so-called TRIS notification to the European Commission on June 21 The IEVA shared its views on the proposal and the full submission is available here.

  • Juul Requests Stay of FDA Order

    Juul Requests Stay of FDA Order

    Photo: steheap

    Juul Labs today asked a federal appeals court to temporarily block the U.S. Food and Drug Administration’s marketing denial order until it can petition the court for an emergency review.

    In its filing, Juul said the FDA’s order was extraordinary and unlawful and it would suffer significant irreparable harm without a stay.

    On June 23, the regulatory agency ordered Juul Labs to remove its products from the market, saying the e-cigarette company had provided insufficient evidence in its premarket tobacco product application to demonstrate that its products are “appropriate for the protection of public health.”

    In particular, the FDA noted that its concerns about genotoxicity and potentially harmful chemicals leaching from the Juul Labs’ proprietary e-liquid pods had not been adequately addressed.

    “We respectfully disagree with the FDA’s findings and decision and continue to believe we have provided sufficient information and data based on high-quality research to address all issues raised by the agency,” said Joe Murillo, chief regulatory officer at Juul Labs, in a statement.

    We respectfully disagree with the FDA’s findings and decision and continue to believe we have provided sufficient information and data based on high-quality research to address all issues raised by the agency.

    “In our applications, which we submitted over two years ago, we believe that we appropriately characterized the toxicological profile of Juul products, including comparisons to combustible cigarettes and other vapor products, and believe this data, along with the totality of the evidence, meets the statutory standard of being “appropriate for the protection of the public health.”

    In its court filing, Juul said the FDA’s decision followed “immense political pressure from Congress once it became politically convenient to blame [Juul] for youth vaping, even though several of its competitors now have a larger market share and much higher underage-use rates,” according to The Wall Street Journal.

    Juul said that the FDA’s order to immediately remove all Juul products from U.S. stores was a departure from the agency’s practices, which typically have a transitional period. The e-cigarette maker also questioned the agency’s handling of the announcement, pointing to the fact that the order had reported in the press before it was officially announced.

    “Regulation through leaks and press releases is no way to handle agency action, much less to order a company to cease essentially all business operations,” Juul said in the court filing.

    In a press note, Juul Labs said it is exploring all of its options under the FDA’s regulations and the law. “We remain committed to doing all in our power to continue serving the millions of American adult smokers who have successfully used our products to transition away from combustible cigarettes, which remain available on market shelves nationwide,” the company wrote.







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    Meanwhile, the announcement that Juul products must come off the market triggered a run on stores, according to various news outlets, including Bloomberg. “Gonna clear the shelves and hoard ’em like our incandescent bulbs!” one user wrote on Twitter following the news.

  • It’s Official: FDA Denies Juul U.S. Market Access

    It’s Official: FDA Denies Juul U.S. Market Access

    Today, the U.S. Food and Drug Administration confirmed what many had already been anticipating: Juul Labs must remove all currently marketed Juul products from the U.S. market.

    “Today’s action is further progress on the FDA’s commitment to ensuring that all e-cigarette and electronic nicotine delivery system products currently being marketed to consumers meet our public health standards,” said FDA Commissioner Robert M. Califf. “The agency has dedicated significant resources to review products from the companies that account for most of the U.S. market. We recognize these make up a significant part of the available products and many have played a disproportionate role in the rise in youth vaping.”

    These marketing denial orders (MDO) pertain only to the commercial distribution, importation and retail sales of these products, and do not restrict individual consumer possession or use—the FDA cannot and will not enforce against individual consumer possession or use of Juul products or any other tobacco products.

    “We respectfully disagree with the FDA’s findings … intend to seek a stay and are exploring all of our options under the FDA’s regulations and the law, including appealing the decision and engaging with our regulator,” said Joe Murillo, chief regulatory officer at Juul Labs, said in a statement. “We remain committed to doing all in our power to continue serving the millions of American adult smokers who have successfully used our products to transition away from combustible cigarettes, which remain available on market shelves nationwide.”

    After reviewing the company’s premarket tobacco product applications, the FDA determined that the applications lacked sufficient evidence regarding the toxicological profile of the products to demonstrate that marketing of the products would be appropriate for the protection of the public health.

    In particular, some of the company’s study findings raised concerns due to insufficient and conflicting data—including regarding genotoxicity and potentially harmful chemicals leaching from the company’s proprietary e-liquid pods—that have not been adequately addressed and precluded the FDA from completing a full toxicological risk assessment of the products named in the company’s applications.

    Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, called the FDA decision “the most significant action the FDA has taken to reverse the youth e-cigarette epidemic. Juul, more than any other product or company, has been responsible for creating and fueling the youth e-cigarette epidemic.”

    The FDA says that, to date, it has not received clinical information to suggest an immediate hazard associated with the use of the Juul device or Juul pods. However, the MDOs issued today reflect FDA’s determination that there is insufficient evidence to assess the potential toxicological risks of using the Juul products.

    “There is also no way to know the potential harms from using other authorized or unauthorized third-party e-liquid pods with the Juul device or using Juul pods with a non-Juul device,” the agency wrote in a statement.

    “The FDA is tasked with ensuring that tobacco products sold in this country meet the standard set by the law, but the responsibility to demonstrate that a product meets those standards ultimately falls on the shoulders of the company,” said Michele Mital, acting director of the FDA’s Center for Tobacco Products. “As with all manufacturers, Juul had the opportunity to provide evidence demonstrating that the marketing of their products meets these standards. However, the company did not provide that evidence and instead left us with significant questions. Without the data needed to determine relevant health risks, the FDA is issuing these marketing denial orders.”

    Gregory Conley, president of the American Vaping Association, asserted on Twitter that the Juul decisions were “manufactured” and “complete nonsense.”

    Andrew Bagley is the owner of the Illuminati Smoke Shop in Columbia, South Carolina, and says even with the popularity of Juul, he doesn’t have concerns about the ban’s effect on sales, reports News19.

    “I’m not concerned,” he said. “We have quite a few other vape products that are PMTA approved, which just means at this point we are legally allowed to sell them and Juuls were a very small percent of our sales, it’s not that big of a deal.”

  • ‘BAT key beneficiary of Juul MDO’

    ‘BAT key beneficiary of Juul MDO’

    Photo: BAT

    The removal of Juul products from the U.S. market would boost the prospects of British American Tobacco, create opportunities for Philip Morris International but represent a problem for Altria Group, according to Morgan Stanley.

    In a letter to investors, the financial institution evaluated the impact of the U.S. Food and Drug Administration’s leaked plans to deny Juul Labs’ premarket tobacco product application (PMTA). While the FDA has not issued a formal statement yet, shares in Altria Group were down more than 9 percent in the immediate wake of the news. Altria owns about a third of Juul Labs.

    According to Morgan Stanley, Juul is Altria’s only exposure to the growing vapor category. While a Juul marketing denial order (MDO) would give Altria an opportunity to terminate its noncompete agreement with Philip Morris International, allowing it to step-up its vapor product research and development or acquire vapor technology, the company would not be coming from a position of negotiating leverage, according to the investment bank.

    “In addition, there are few larger scale independent e-vapor assets on the market,” wrote Morgan Stanley.

    The investment bank believes that removing market leader Juul from U.S. store shelves would create opportunities for other products, such as PMI’s IQOS heat-not-burn device, which has already received PMTA approval.

    The key beneficiary of a Juul MDO, however, would be British American Tobacco, according to Morgan Stanley.

    Several of the company’s products have already received PMTA authorizations, the investment bank points out. Though its Vuse brands, BAT recently overtook Juul as the leading U.S. e-cigarette player with a market share of more than 33 percent. The company has gained significant momentum in the category over the past 24 months and a Juul MDO could lead to further BAT market share gains, according to Morgan Stanley.

  • Zinwi Receives E-Liquid Production License

    Zinwi Receives E-Liquid Production License

    Zinwi Bio-Tech has secured a production license for electronic cigarettes (e-liquid category) in China, becoming one of the first manufacturers to do so under the country’s new regulatory framework.

    In March, the State Tobacco Monopoly Administration passed the Electronic Cigarette Administration Measures, which took effect May 1. Under the new rules, a production license issued by the STMA is a precondition for the incorporation of a company involved in the manufacture of vapor hardware, e-liquids or e-cigarette nicotine.

    Companies applying for the license must supply documents showing financial and manufacturing fitness, among other evidence.

    Zinwi Bio-Tech was established in 2016 and is headquartered in Shenzhen’s Guangming District. A high-tech enterprise integrating the R&D, production and sales of e-liquid, the company ships more than 2,000 tons of e-liquid and approximately 1.3 billion pods per year. Products are exported to Europe, America and Canada, the Middle East, Russia and other destinations.

    In a press note, the company said its commitment to quality is demonstrated by numerous accreditations, including the ISO9001 quality system, national CNAS laboratory and GMP certifications.

  • Feelm Commits to Carbon Disclosure Project

    Feelm Commits to Carbon Disclosure Project

    Photo: Feelm

    Feelm has joined the Carbon Disclosure Project (CDP), as part of the listing of its parent company, Smoore.

    CDP is an independent not-for-profit organization that manages a global disclosure system and repository for environmental reporting by corporations, municipalities and organizations around the world.

    In 2021, more than 680 financial institutions, representing $130 trillion in assets, supported CDP’s request for data sharing, while over 13,000 companies, accounting for 64 percent of the world’s market capital, disclosed through CDP’s database. Phillip Morris International, British American Tobacco, Japan Tobacco International, Altria Group and Imperial Tobacco also take part in the CDP.

    In May 2022, Feelm announced its commitment to achieve carbon neutrality by 2050, with a strategic executive plan that includes introducing zero-carbon vape technology solutions, adopting eco-friendly materials and green packaging, supporting the global supply chain in de-carbonization and activating a recycling program of vape pod cartridges and devices with clients.

    “Carbon neutrality is an important component of our integrated ESG strategic plan as it helps to accelerate our business transformation, said Sofia Luo, marketing director of Feelm’s business division, in a statement.

    “That is why Feelm follows the measures and roadmap outlined in the ‘Corporate Net-zero Pathway’ published by the UN in 2021. Feelm will press ahead with its commitment to comply with UN standards, disclose information transparently, and welcome scrutiny from international organizations and the public; in order to reach our vision of developing an eco-friendly and low-carbon economy.”

  • Medad Pioneers Ultrasound Water Pipe for Shisha

    Medad Pioneers Ultrasound Water Pipe for Shisha

    Image: Studio217

    Medad Technology has developed a shisha pipe that it says is less harmful to health than traditional hookah, reports The National.

    Unveiled at the recent World Vape Show in Dubai, the company’s Nesta pipe delivers a nicotine hit via ultrasonic vibrations, which could cut cancer risk from inhaling toxic fumes, according to Medad Technology.

    The device’s patented algorithm reportedly produces mist droplets containing nicotine that are evenly distributed as they are inhaled.

    Misting is distinct from vaping as it uses ultrasound technology rather than heat. The absence of charcoal and tobacco means the product generates none of the harmful carbon emissions or toxic fumes that are usually inhaled by users of traditional hookah pipes, according to the company.

    “The challenge was to develop real, alternative products that were safer than shisha and e-cigarettes, not categorized under vaping, so a completely new product,” Medad Holding CEO Mohammed Al Mazrouei was quoted as saying.

    The device has been approved by the European Union Medical Agency and by the U.K.’s Medicines and Healthcare Products Regulatory Agency, according to Medad Holding.  

    It is under review by UAE authorities. The company is planning to also apply for approval by the U.S. Food and Drug Administration.

    An estimated 100 million people use shisha, or similar water pipes, on a daily basis around the world.

     

  • Sweden: Lawmakers Reject Vapor Flavor Ban

    Sweden: Lawmakers Reject Vapor Flavor Ban

    Photo: WDnet Studio

    Sweden’s Parliament, the Riksdag, rejected a ban on sales of flavored vaping products, with 177 lawmakers voting against the proposal and 126 lawmakers voting in favor, reports Vaping360.

    Introduced by the government’s Ministry of Social Affairs in late February, the new rules would have taken effect next January, and would have prohibited flavors other than tobacco in all e-liquid, including zero-nicotine vape juice.

    In rejecting the proposal, lawmakers heeded the advice of the Riksdag’s social affairs committee, which had recommended adopting proposed regulations for nicotine pouches and synthetic nicotine but eliminating the flavor ban.

    Seven other European countries have banned non-tobacco vape flavors. In Denmark, Estonia, Finland, Hungary and Ukraine, flavored vape restrictions are currently in place. Lithuania’s flavor ban will take effect July 1. In the Netherlands, the flavor prohibition scheduled to begin in July has been postponed until January 2023.

    No European country has banned vaping products outright.

  • Bidi Parent Kaival Brands Reports Quarterly Results

    Bidi Parent Kaival Brands Reports Quarterly Results

    Photo: Song about Summer

    Kaival Brands’ revenues decreased by approximately $15.7 million in the second quarter of fiscal year 2022, compared to the same period of fiscal year 2021. Compared with the first quarter of 2022, however, revenues rose 11 percent.

    Gross profit in the second quarter of fiscal year 2022 was approximately $387,700, or approximately 12.7 percent of revenues, net, compared to approximately $6.3 million gross profit, or approximately 34.6 percent of revenues, net, for the second quarter of fiscal year 2021.

    In February 2022, Bidi Vapor was granted a judicial stay on the marketing denial order (MDO) previously issued by the U.S. Food and Drug Administration prohibiting the marketing and sale of nontobacco flavored Bidi Sticks, which had significantly impacted Kaival Brands’ revenues in previous quarters.

    As a result of the grant of the judicial stay of the MDO, the company’s revenues increased in the second quarter of fiscal 2022, as compared to first quarter of fiscal 2022. Kaival Brands expect this trend to continue as renewed distribution ramps up and sales of nontobacco flavored Bidi Sticks increase, subject to the court ruling in Bidi Vapor’s favor in the pending merits-based case, and subject to the FDA’s enforcement discretion.

    “Our results demonstrate strong execution and resiliency in our business, as revenues in the second quarter of fiscal year 2022 rose 11 percent as compared to revenues in the first quarter of fiscal year 2022,” said Kaival Brands founder and CEO Niraj Patel in a statement.

    “The recently announced international licensing agreement with Philip Morris Products, a wholly owned affiliate of Philip Morris International, is a major milestone in the company’s efforts to expand the global sales and distribution of the Bidi Stick. From a balance sheet perspective, the international licensing agreement has the potential to generate substantial returns on capital for the company, given the low cash investment needed to reach a significant number of potential new consumers.”

  • EU to Review Feedback on Tobacco Framework

    EU to Review Feedback on Tobacco Framework

    Photo: mbruxelle

    The European Commission has collected feedback from almost 25,000 organizations, experts and citizens about its legislative framework for tobacco control. Its initial call for evidence feedback period ended June 17.

    The Commission will use the feedback to evaluate to what extent the legislative framework has fulfilled its goals and whether it is able to support a “tobacco-free generation” by 2040, as announced in Europe’s Beating Cancer Plan.

    Participants included organization such as the Independent European Vaping Alliance (IEVA), which identified several opportunities for improvement.

    “The European e-cigarette market is one of the most regulated and safest worldwide. IEVA supports the tobacco product directive which has allowed for safe products to be made available to EU consumers. These rules have prevented irresponsible business—as we unfortunately have witnessed in the U.S., where the vaping market was not regulated—and whose behaviors we most vehemently condemn,” the IEVA wrote in a statement.

    “We would like to use this submission to present areas that merit further consideration through the process of evaluating the Tobacco Products Directive which we believe have not been addressed through the process thus far. We will focus on three core areas which we believe need to be further explored in any discussion about a legislative review: the impact on smokers, the impact on SMEs [small and medium-sized enterprises] and employment, and the impact on illicit trade.”

    The IEVA’s full contribution can be viewed here.

    The European Commission will hold a public consultation in the fourth quarter of 2022 and anticipates adoption in the second quarter of 2023.