Author: Taco Tuinstra

  • Brazil Mulls Legalizing E-Cigarettes

    Brazil Mulls Legalizing E-Cigarettes

    Photo: Rmcarvalhobsb

    E-cigarettes may become legal in Brazil later this year as ANVISA, the federal health sanitary agency, plans to revisit its regulations regarding the products. Proponents of vaping have been pushing the government to legalize the products to help smokers quit combustibles, but critics are concerned about  youth usage as well as potential higher rates of vaping that could follow legalization.

    Electronic tobacco products have been banned in Brazil since 2009, but there are currently shops that sell the products anyway, often with statements that the products are safe, according to The World.

    “Once the product is legally allowed to be commercialized, it gets into the distribution network of the tobacco companies, which have one of the best distribution systems around,” said Stella Bialous, a Brazilian expert on tobacco issues and a professor from the University of California, San Francisco. She fears that more people would likely take up vaping if the products are allowed to be commercialized. In 2019, less than 1 percent of Brazilians used e-cigarettes. However, if the products are commercialized, they would become more easily available, and that percentage could quickly rise.

    “Considering that these products are attractive to youth and that we can’t affirm that they really work for tobacco cessation, we believe that we must prioritize the public policies to prevent smoke initiation and also to promote health for the Brazilian population,” said Monica Andreis, the executive director from ACT Promocao da Saude, a nongovernmental organization that focuses on tobacco control policies.

    “Brazil has a leadership role in Latin America and also around the world related to tobacco control policies. I believe that the decision from ANVISA has the potential to influence other countries in Latin America,” Andreis said.

    ANVISA has not commented on the situation, stating that it is still analyzing data. “Up to this point, there are still uncertainties and controversies related to the risks attributed to these devices,” the agency stated in February.

  • Gene Tree Recognized for Pioneering Vaping Technology

    Gene Tree Recognized for Pioneering Vaping Technology

    Photo ICCPP

    ICCPP’s Gene Tree nano-microcrystalline ceramic vaporizer core won China CE Magazine’s Pioneer Technology Award 2021.

    Launched in September 2021, Gene Tree is the first “0 powder definition” ceramic core in the vapor industry. The manufacturing process is designed to eliminate dust and thus avoids the harm caused by powder falling of ordinary ceramic cores.

    The high-void porous structure of the Gene Tree core, combined with the application of food-grade lipophilic rare earth oxide, gives it excellent e-juice “guiding and locking” ability. It not only enhances stability and prolongs the product’s lifespan, but also prevents leakage, dry burns and explosions while optimizing flavor.

    According to ICCPP, the product’s self-developed heating slurry is more consistent with the thermodynamic properties of porous ceramics, greatly reducing the phenomenon of core slurry. Even after 4,000 tests of dry burning at 2.5 watts, the heating film and resistance value remained intact. The service life of dry burning at 6 watts is up to five times that of other products.

    China CE Magazine is an influential publication in China’s electronic consumer goods industry.

  • Health Groups Urge FDA Action on Top Vape Brands

    Health Groups Urge FDA Action on Top Vape Brands

    Photo: Dmytro

    Health groups are urging the U.S Food and Drug Administration to make haste in addressing the remaining premarket tobacco applications (PMTA) for leading e-cigarette brands such as Juul, Blu, Vuse (Alto) and NJOY, which make up 75 percent of the U.S. market and are among the most popular with youth.

    “We are grateful to see movement again by the FDA on the e-cigarette pre-market approval process under Dr. Califf’s leadership and the recognition of the risks these products pose to America’s youth while assessing the public health benefit for adult smokers,” wrote Robin Koval, president and CEO of the Truth Initiative, in a statement following the FDA’s authorization of Logic Technology Development’s tobacco-flavored e-cigarettes. Logic, however, makes up a small percentage of the U.S. e-cigarette market, with just over 1 percent according to retailer scanner data.

    The Truth Initiative also expressed concern about the FDA’s failure to deny marketing applications for Logic’s menthol e-cigarettes, which remain under review. “According to the latest NYTS data, nearly 30 percent of young people who use e-cigarettes reported using a menthol flavor,” wrote Koval. “As the FDA prepares to issue a proposed rule removing menthol cigarettes from the market, we continue to urge the FDA to remove all flavored tobacco products, including menthol to protect our nation’s youth.”

    Meanwhile, tobacco harm reduction advocates, took the approval of Logic, which is ultimately owned by Japan Tobacco International, as further evidence that the PMTA process favors deep-pocketed tobacco multinationals.

    “It’s mildly gratifying to hear FDA say out loud the obvious and simple truth that vaping is helping Americans quit smoking,” Amanda Wheeler, president of the American Vapor Manufacturers Association told Filter. “But meanwhile in the bureaucratic shadows, they are strangling the life out of our entire innovative, entrepreneurial industry.”

    “The FDA should be thoroughly embarrassed that the only vaping products with PMTAs are ones that have been rejected by adult consumers,” Greg Conley, the president of the American Vaping Association, told Filter. “If JTI did not have cigarette sales to subsidize their minimal effort offerings in next-gen products, market forces would have caused them to stop selling these products years ago.”

  • South Africa: Concern Over New Vaping Rules

    South Africa: Concern Over New Vaping Rules

    Photo: Adrian | Adobe Stock

    The Free Market Foundation is concerned that the South African government’s plans for regulating vaping products will push more people back toward smoking combustible cigarettes and buying from the black market, reports BusinessTech.

    “The South African government argues that e-cigarette and vaping products are harmful and warrant regulation,” the Free Market Foundation said. “However, e-cigarettes and vaping innovations are tobacco harm reduction products aimed at mitigating the adverse health impacts associated with combustible tobacco products.”

    “The total excise duty to be levied on nicotine and a non-nicotine solution, e-cigarettes and vaping, will range from ZAR33.30 [$2.28] to ZAR346. Therefore, poorer communities suffering disproportionately from tobacco-related diseases would be more incentivized to continue smoking cigarettes than pick healthier alternatives.”

    “In reality, smokers may simply opt for illicit products, which are cheaper and constitute 42 percent of the informal market for cigarettes. Additionally, illicit goods are more harmful since production standards are not adhered to.”

    The illicit cigarette market in South Africa grew substantially during a temporary ban on tobacco and it has yet to shrink to pre-lockdown volumes.

    “National Treasury’s proposals to tax e-cigarette solutions that contain no tobacco or nicotine may, in particular, be questioned by some stakeholders as it does not necessarily support the government’s stated policy intention of reducing the consumption of tobacco products,” said Webber Wentzel, a legal firm. “It also could stimulate the illicit trade in e-cigarettes as has happened in the tobacco sector.”

    The proposed tax would go into effect Jan. 1, 2023, if passed.

  • VPR Settles 3 More Patent Suits for Auto-Draw Technology

    VPR Settles 3 More Patent Suits for Auto-Draw Technology

    Illustration: VPR Brands

    XL Vape, VGOD and Saltnic have agreed to pay VPR brands $155,000 to settle patent-infringement litigation related to VPR’s auto-draw technology, according to a press release. As part of the deal, VPR brands has granted each of the companies a non-exclusive license to practice the invention set forth in the disputed intellectual property.

    Dating from 2009, U.S. patent 8,205,622 covers electronic cigarette products containing an electric airflow sensor, including a sensor comprised of a diaphragm microphone. The sensor turns the battery on and off, and covers most auto-draw, button less e-cigarettes, cig-a-likes, pod devices and vaporizers using an airflow sensor rather than a button. The technology is covered under electronic cigarette utility patent

    VPR Brands has started to identify and notify over 50 of the leading companies using its auto-draw technology. XL Vape, VGOD and Saltnic were prioritized based on their sales volumes and popularity.

    According to VPR Brands, most nicotine vaping devices sold in the U.S. today utilize an auto-draw/button-less technology. The company is investigating all button-less vape devices within the nicotine, CBD, and cannabis space that initiate vaporization from the user’s airflow inhalation as they would be suspect of infringement.

    The company says it may also seek a buyer for its patent in the future, citing the example of Ruyan, which in August 2013 sold its e-cigarette patent to Imperial Tobacco group for $75 million.

    VPR’s settlement with XL Vape, VGOD and Saltnic follows earlier settlements with Nepa 2 Wholesale and HQDTech, and PHD Marketing.

  • Canada Opens Consultation on Tobacco And Vaping Act

    Canada Opens Consultation on Tobacco And Vaping Act

    Photo: JHVEPhoto

    The government of Canada has opened public consultation on the Tobacco and Vaping Products Act (TVPA) ahead of its mandatory parliamentary review. Stakeholders can provide input until April 27, 2022.

    In 2018, the TVPA was amended to protect youth and nonsmokers. The amended act recognized that vaping was significantly less harmful than smoking, and smokers that switched to vaping could reduce their exposure to thousands of chemicals. The Act introduced measures to protect youth through various labeling and promotion regulations.

    Darryl Tempest

    Tobacco harm reduction advocates welcomed the consultation. “Vaping has helped millions of smokers quit and has the potential to help millions more if it weren’t for the misrepresentations of the industry by media and misperceptions surrounding the product itself. It is imperative that Parliamentarians have the opportunity to hear from a wide range of experts as part of the TVPA review process,” said Darryl Tempest, government relations advisor to the Canadian Vaping Association (CVA)

    Health Canada’s discussion paper states, “For adults who smoke, there appears to be a lack of awareness that vaping products are a less harmful source of nicotine for those who currently smoke and switch completely to vaping. A 2020 survey found that only 22 percent of current smokers recognized that vaping is less harmful than smoking cigarettes.”

    In its consultation submission, the CVA will urge Health Canada to rectify this through the issue of relative risk statements for approved use by licensed specialty vape shops. In 2018, Health Canada proposed a “List of Statements for Use in the Promotion of Vaping Products.” According to the CVA, this proposal has been put on the back-burner and has languished in Health Canada’s bureaucracy to the detriment of potential public health gains from smokers switching to vaping.

    “Instead of issuing reasonable statements for use by specialty vape shops, the TVPA has effectively gagged the vape industry through Section 30.43,” the CVA wrote in a press release. Section 30.43 prohibits “the promotion of a vaping product in a manner that could cause a person to believe that health benefits may be derived from the use of the product or from its emission or by comparing the health effects arising from the use of the product or from its emissions with those arising from the use of a tobacco product or from its emissions. The purpose of this prohibition is to prevent the public from being deceived or misled with respect to the health hazards of using vaping products.”

    “The CVA looks forward to actively participating in the review process and will advocate for enhanced measures to protect youth, as well as increased smoker targeted messaging on the benefits of switching to vaping. We encourage all stakeholders to submit feedback,” said Tempest.

  • Poda Moving All Pod Production to North America

    Poda Moving All Pod Production to North America

    Photo: Poda Holdings

    Poda Holdings has signed a purchase agreement with its Chinese manufacturing partner to acquire Poda Pod manufacturing equipment, 15 patent applications related to Poda Pod technology and three Chinese trademarks for approximately CDN3.45 million ($2.7 million).

    The manufacturing equipment is comprised of all proprietary custom-built equipment for Poda Pods production capable of producing an estimated 5 million Poda Pods per year. All manufacturing equipment will be shipped to Vancouver, British Columbia. The 15 patent applications were filed in China and represent unique product design and manufacturing methods applicable to the development and large-scale production of Poda Pods.

    “Given the general unrest of the geopolitical situation around the globe, the company has determined it will manufacture Poda Pods in North America,” said Poda Holdings CEO Ryan Selby in a statement.

    “This will reduce the amount of lag time from manufacturing to customer delivery and will provide a significant reduction in tariffs, allowing the company to be more competitive. The acquisition of the manufacturing equipment and patent applications is an important step in the growth and value of Poda, which the company believes outweighs the resulting delays in production.”

  • FDA Grants Reduced-Exposure Claim to PMI’s IQOS 3

    FDA Grants Reduced-Exposure Claim to PMI’s IQOS 3

    Photo: PMI

    The U.S. Food and Drug Administration has issued a modified risk granted order authorizing Philip Morris Products to market the IQOS 3 system holder and charger with the following reduced exposure information:

    • The IQOS system heats tobacco but does not burn it.
    • This significantly reduces the production of harmful and potentially harmful chemicals.
    • Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals.”
    • This reduced exposure information is the same as the information previously authorized by FDA in July 2020 for an earlier version of the device.

    Today’s action follows the FDA’s review of a new modified risk tobacco product (MRTP) application submitted by the company for the IQOS 3 system holder and charger. This MRTP application primarily cross-referenced the supplemental premarket tobacco product application for this device, which was authorized for legal sale and distribution in the United States in December 2020, as well as the MRTP application for the previous version of the device.

    The IQOS 3 device is similar in design to the previous version (with mainly aesthetic changes), uses the same tobacco source, and the company requested to use the same exposure reduction claim as authorized for the previous version of the device. Given these similarities, FDA largely relied on its past evaluations of the IQOS 3 device and previous version of the device in determining that the IQOS 3 device meets the authorization criteria to be marketed as an MRTP.

    Headquartered in Switzerland, Philip Morris is currently banned from importing the product into the United States following an adverse ruling in a patent dispute with BAT’s Reynolds American subsidiary.

    In an interview with Bloomberg, PMI CEO Jack Olczak said the company plans to manufacture IQOS in the U.S. to get around the import ban.

  • RLX Technology Net Revenue Sees Growth in 2021

    RLX Technology Net Revenue Sees Growth in 2021

    Net revenues of RLX Technology increased by 123.1 percent to RMB8.52 billion ($1.34 billion) in fiscal year 2021. The increase was primarily due to an increase in net revenues from sales to offline distributors, which was mainly attributable to the expansion of the company’s distribution and retail network (China banned internet sales of vapor products in October 2019).

    Gross profit increased by 140.4 percent to RMB3.67 billion while gross margin increased to 43.1 percent from 40 percent in the prior year.

    For the fourth quarter of 2021, RLX Technology reported net revenues of RMB1.9 billion, up 17.7 percent from the comparable 2020 quarter. Gross margin was 40.2 percent, compared with 42.9 percent in the same period of 2020.

    “We are pleased with our operational and financial performance in the fourth quarter, ending 2021 on a strong note. Despite the evolving industry regulatory framework and challenging backdrop of recurrent Covid-19 outbreaks, we remained focused throughout the year on optimizing our distribution and retail channels, investing in scientific research, new product development, and digitalization upgrades,” said Ms. Ying (Kate) Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.

    “The 2021 fiscal year was defined by year-over-year revenue growth of 123.1 percent, further cementing our leadership as a trusted e-vapor brand for adult smokers. Looking ahead, we are confident that the company is well-positioned to further explore the enormous potential of this vast yet growing industry and achieve future growth in 2022 and beyond.”

  • Coresta Confirms 2022 Congress as Online Only Event

    Coresta Confirms 2022 Congress as Online Only Event

    The 2022 Coresta Congress will take place online Oct. 10-28.

    The event will comprise daily, two-hour sessions or workshops (1 pm to 3 pm Central European Time) focused on a specific topic area with pre-recorded 10 to 12 minutes oral presentations followed by a live Q&A with the presenters.

    Coresta’s Agronomy & Leaf Integrity and Phytopathology & Genetics study groups are soliciting the submission of papers relating to sustainability in tobacco leaf production, low nicotine, leaf chemistry, crop and environmental protection, genetics and plant breeding and supply chain integrity.

    The organization’s Smoke Science and Product Technology study groups are encouraging the submission of abstracts presenting scientific research related to conventional tobacco products and potentially reduced harm next generation products such as e-cigarettes, heated tobacco products and novel oral products containing tobacco-derived nicotine.

    The abstract submission deadline is May 20.

    For more information visit www.coresta.org/events/coresta-congress-2022-35938.html.