Author: Timothy Donahue

  • Nicotine Pouch Sales Rising at Haypp Group

    Nicotine Pouch Sales Rising at Haypp Group

    Photo: Haypp Group

    The Haypp Group, the world’s largest online retailer of nicotine pouches, reported net sales of SEK942.8 million ($89.66 million) for the second quarter of 2024, up 23 percent over the comparable 2023 period.

    Gross profit increased to SEK135.2 million, corresponding to a gross margin of 14.3 percent. Adjusted earnings before interest and taxes rose to SEK34.4 million, mainly due to the higher gross margin, increased volume as well as efficiency gains, partially offset by continued investments into additional capabilities.

    The company’s nicotine pouch volume grew by 43 percent over the second quarter of 2023.

    “Haypp group continued to show a very strong performance in the second quarter with YoY Nicotine Pouch volume growth of 43 percent,” said Haypp Group CEO Gavin O’Dowd in a statement.

    “This is accelerating from prior quarters as the category continues to thrive in our growth markets due to the increasing appetite for risk reduced products. While the category experienced some turbulence in the USA during the quarter, we were well positioned and our volume grew around 70 percent. The investments in our business operations have continued to deliver value with an increase of 68 percent in our adjusted EBIT. This robust growth, over many years shows how robust our business is, irrespective of the economic environment.”

    The Haypp Group’s interim report is available here.

  • ‘Medical Vapes Facing Uphill Battle’ for Approval

    ‘Medical Vapes Facing Uphill Battle’ for Approval

    Photo: DALU11

    Companies developing vape-like devices to ease medical conditions such as migraines and respiratory diseases continue to face skepticism from health authorities and the public, according to a Reuters article.

    The piece details the efforts of Qnovia, MIIST Therapeutics and Greentank, which are exploring the potential of nebulizer technology or heating technology to deliver medications.

    The companies say inhalation can relieve pain faster and with fewer side effects than pills. Federico Buonocore, a professor focused on alternative pulmonary drug delivery at Kingston University in Britain, told Reuters that existing inhaled drug delivery devices are clunky and difficult to operate, and so tend to be used wrongly. A vape-like design could solve such challenges, he was quoted as saying.

    Qnovia plans to submit drug applications in the U.S. soon and the United Kingdom in 2026 for its device as a nicotine replacement therapy, and launch a clinical trial in September.

    Greentank is looking for a pharmaceutical partner to support the development of its heating chip for medicine delivery.

    Efforts by traditional tobacco companies to tap into the pharmaceutical market have been hampered by mistrust and opposition from health officials.

    Philip Morris International last year scrapped a goal to earn over $1 billion in annual revenue by 2025 from its wellness and healthcare unit, which includes a business making asthma inhalers.

    CEO Jacek Olczak said the company had been “too optimistic about how the external environment will accept… Big Tobacco” in industries outside of nicotine. An inhaled aspirin product developed by the unit was also deemed unsuccessful after a clinical trial last year.

    Tobacco-backed companies developing Covid-19 vaccines using plant-based technology also faced stiff opposition from health groups, including the World Health Organization.

    Buonocore said the stigma associated with tobacco and vaping companies would be difficult for the sector to overcome.

  • Taiwan Mulls Ban on 27 Kinds of Flavor Chemicals

    Taiwan Mulls Ban on 27 Kinds of Flavor Chemicals

    Photo: Hertz Flavors

    The Ministry of Health and Welfare wants to ban 27 types of chemicals from being used in tobacco products, vapes and heat-not-burn devices, reports The Taipei Times.

    The list includes vanillin, maltol and heliotropin among other chemical compounds commonly used as additives in flavored tobacco products. Without these substances, manufacturers would be unable to produce popular flavors such as caramel, butter, almond, rose, coconut, raspberry, vanilla and cheese,

    The new proposal would enable the ministry to remove more than half of flavored tobacco products from the market, according  to Lo Su-ying, who heads the Health Promotion Agency’s Tobacco Control Division.

    Under the draft rule, manufacturers and importers of products containing the banned substances would risk fines of between NTD1 million ($30,846) and NTD5 million, while sellers would incur penalties of between NTD10,000 and NTD50,000.

     The government will subject the proposal to a 60-day public consultation.

  • Activist Decry New Zealand’s Disposables Ban

    Activist Decry New Zealand’s Disposables Ban

    Photo: YarikL

    Vaping activists have expressed concern about New Zealand’s decision to ban disposable e-cigarettes.

    The New Zealand Ministry of Health announced the ban with the intention of reducing adolescent vaping. The new regulations prohibit the manufacture and sale of all non-rechargeable and non-refillable vapes, including single-use containers such as pre-filled tanks, pods and cartridges.

    The World Vapers Alliance (WVA) warned that the ban could undermine New Zealand’s progress in reducing smoking rates.

    “Preventing teenagers from using nicotine products is essential, and strict age regulations should be enforced to achieve this goal,” said WVA Policy Manager Alberto Gómez Hernández in a statement.

    “However, banning disposable vapes and various pod systems for adult consumers will have negative public health implications and jeopardize the progress towards a smoke-free society achieved in the last decade. This approach fails to recognize the vital role disposable vaping products play in helping smokers transition away from cigarettes.”

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) expressed similar reservations. “We understand and support the government’s intent to curb youth vaping,” said CAPHRA Executive Coordinator Nancy Loucas.

    “However, the proposed ban on disposable vaping products, including prefilled tanks, pods and cartridges, will create substantial barriers for adults who smoke and older vapers. Many of these individuals rely on simpler, disposable products due to difficulties with dexterity and the complexities of refillable devices. This ban could force them back to smoking cigarettes, which is counterproductive to the Smokefree 2025 goal.”

  • Two Arrested in UAE for Selling Illegal Vapes

    Two Arrested in UAE for Selling Illegal Vapes

    Credit: Creative

    Police in the United Arab Emirates city of Ajman arrested two persons of interest on charges of trading and storing 797,000 e-cigarettes without a license and tax evasion.

    Upon receiving a report, the authorities immediately formed a team and raided the site, where large quantities of e-cigarettes from several companies were seized.

    As many as 797,555 electronic cigarettes were found stored in five rooms in the villa, bearing the trademarks of hundreds of electronic cigarette manufacturing companies, according to media reports.

    The authority called on the public to be careful when purchasing goods from non-approved sales locations and not to hesitate to report them, pointing out the dangers of smoking to health and safety.

    It also added that Ajman Police will be on the lookout and will deal firmly with tax evasion crimes that tamper with national security and safety of citizens and residents.

  • Study: Inaccurate Disclosures of Nicotine Analogs

    Study: Inaccurate Disclosures of Nicotine Analogs

    Photo: ryanking999

    Companies are inaccurately disclosing the ingredients in products containing nicotine analogs, according to researchers at Duke University and Yale University. Remarkably, in many instances the levels measured were lower than those labeled on the packaging.

    Nicotine analogs are currently not subject to the U.S. Food and Drug Administration’s marketing authorization process and have not been extensively studied for their health effects. One chemical, known as 6-methyl nicotine, has been shown in rodent experiments to be far more potent than nicotine in targeting the brain’s nicotine receptors.

    The scientists analyzed a Spree Bar e-cigarette, which is listed as containing 5 percent 6-methyl nicotine. Study results showed the actual amount of the chemical was about 88 percent less than labeled. The e-cigarettes also included an artificial sweetener that is up to 13,000 times sweeter than table sugar, and an artificial coolant that mimics menthol’s effects.

    A second brand of e-cigarettes, marketed as Nixotine, Nixodine, Nixamide and Nic-Safe, contained a nicotine analog called nicotinamide, also at levels lower than the labels indicated, and combined with undisclosed amounts of 6-methyl nicotine. This brand did not include sweeteners or coolants.

    The researchers speculated that companies are using nicotine analogs to bypass health regulations covering vaping products.

    “These products appear to be designed to circumvent the laws and regulations in place to protect people—especially children—from the harmful effects of smoking and tobacco use,” said senior author Sven Eric Jordt in a statement. “We do not know what these chemicals do when they are heated and inhaled. These are questions that should be answered before we allow products on the market.”

  • Malaysian Activists Concerned About Vape Rules

    Malaysian Activists Concerned About Vape Rules

    Image: Butenkow/Usama

    The Malaysian Vapers Alliance (MVA) is voicing concerns about the potential impact of the Control of Smoking Products for Public Health Act 2024 (Act 852) on the vaping community.

    With Act 852 currently in its final review at the Attorney-General’s Chambers, the MVA is urging lawmakers to consider the consequences of overly stringent regulations on vapers, especially ex-smokers who have quit smoking by switching to vaping.

    A survey conducted by the MVA last year revealed 73.7 percent of vapers in Malaysia are former smokers. The MVA cautions the government that classifying vaping products in the same category as cigarettes under the new regulations, including strict measures like a ban on display of vape products, could drive these ex-smokers back to smoking cigarettes. This shift would undermine public health efforts to reduce smoking rates.

    We urge the government to adopt a balanced approach that recognizes the harm reduction potential of vape and provide a supportive environment for vapers to stay off tobacco.

    Khairil Azizi Khairuddin, president, Malaysian Vapers Alliance

    Khairil Azizi Khairuddin, president of the Malaysian Vapers Alliance emphasized the importance of separate regulations between vape and tobacco products to prevent a regression in public health outcomes.

    “Harsh regulations that fail to distinguish between vaping and smoking, like banning the display of vape products, could see many vapers, who have successfully quit smoking traditional tobacco, to revert to their old habits,” Khairil Azizi Khairuddin said. “Such a shift not only jeopardize their health but also reverses nationwide progress in reducing smoking prevalence in Malaysia.”

    “We urge the government to adopt a balanced approach that recognizes the harm reduction potential of vape and provide a supportive environment for vapers to stay off tobacco.”

    The MVA survey also revealed that the majority of vapers (80.1 percent) switched to vape as it helped them quit smoking. The implementation of harsh regulations, that do not consider these facts, could undermine the progress of reducing smoking rates in the country.

    “MVA calls on the ministry of health to ensure that the final version of Act 852 includes sensible regulations that support harm reduction and do not classify vaping products the same as cigarettes. We believe that informed and balanced regulation can protect public health while ensuring that vapers do not revert to smoking,” Khairil Azizi Khairuddin said.

  • FDA Posts 2 Regulatory Science Memos for Vapes

    FDA Posts 2 Regulatory Science Memos for Vapes

    Credit: Araki Illustrations

    FDA posted the following two regulatory science policy memos related to the agency’s review of premarket tobacco product applications (PMTAs) for new e-cigarette products: 

    • June 03, 2024: Genotoxicity Hazard Identification and Carcinogenicity Tiering of Constituents in ENDS Premarket Tobacco Product Applications
    • June 03, 2024: Calculating Excess Lifetime Cancer Risk in ENDS Premarket Tobacco Product Applications

    In general, the science policy memos provide a snapshot of FDA’s internal thinking on a specific topic at a certain point in time. Therefore, the information contained in the memos is subject to change, for example, based on changes in policy, the regulatory framework, or regulatory science, according to a press release.  

    FDA’s review of tobacco product applications is based on the specific facts presented in each application and is documented in reviews particular to each application. The memos posted today should not be used as a tool, guide, or manual for the preparation of applications or submissions to FDA.

    For applicants seeking to market new tobacco products, FDA has issued final regulations, such as the PMTA final rule that describes the required content, format, and review procedures for PMTAs, as well as guidance documents. FDA also regularly posts additional resources, such as webinars and application tips, on CTP’s website and social mediaExternal Link Disclaimer.  

    In April, FDA resumed the posting of regulatory science policy memos, with a subsequent release in May. The release of these latest memos reflects the CTP’s ongoing commitment to enhance transparency consistent with the December 2022 evaluation of the center by an independent expert panel facilitated by the Reagan-Udall Foundation.

  • Discount Brands Boost Revenue, Income at Vector

    Discount Brands Boost Revenue, Income at Vector

    Photo: Mind and I

    Vector Group reported consolidated revenues of $371.9 million for the second-quarter of 2024 financial results, up 1.7 percent compared to the prior-year period.

    Tobacco segment wholesale market share increased to 5.7 percent from 5.4 percent in the prior-year period, and retail market share remained at 5.8 percent, unchanged from the prior-year period.

    Montego wholesale and retail market share both increased to 4.1 percent from 3.4 percent and 3.5 percent, respectively, in the prior-year period.

    Operating income was $97.8 million, up 36.5 percent, or $26.1 million, compared to the prior-year period.

    Tobacco segment operating income was $102.9 million, up 37 percent, or $27.8 million, compared to the prior-year period.

    Adjusted EBITDA was $103.3 million, up 9.7 percent, or $9.2 million, compared to the prior-year period.

    Tobacco adjusted EBITDA was $104.4 million, up 10.2 percent, or $9.7 million, compared to the prior-year period.

    “Vector Group delivered strong performance in the second quarter, bolstered by the impressive growth of our Montego brand,” said Vector Group President and CEO Howard M. Lorber in a statement.

    “Montego’s continued expansion as the largest discount brand in the U.S. highlights the effectiveness of our strategic approach, expert market analysis and proven execution. We are confident in our ability to sustain our momentum in the second half of the year and to drive long-term value for our stockholders.”

  • Activists Slam IQOS Maker for Cellulose Heat Sticks

    Activists Slam IQOS Maker for Cellulose Heat Sticks

    Photo: Kuznyechova Yevgenia

    Anti-tobacco activists contend Philip Morris International is trying to circumvent the Dutch ban on flavored tobacco and vape products with its Levia heat sticks, reports Dutch News.

    Made with cellulose rather than tobacco, Levia heat sticks are considered an herbal product and are thus not covered by country’s tobacco legislation. The sticks retail online for €6.60 ($7.21) per pack of 20 and are sold in two flavors—”island beat,” which is menthol, and berry-flavored “electro-rouge.”

    The Netherlands banned menthol in cigarettes in May 2020 and outlawed flavored vape products in early 2024.

    Campaign group Rookvrije Generatie says Levia “a trick” to keep on selling smoking products with flavor. “They might not contain tobacco but they are packed with addictive nicotine,” spokesman Dave Krajenbrink was quoted as saying.

    Legislators are reportedly considering an amendment that would extend the flavor ban to tobacco-free nicotine products.