Author: Timothy Donahue

  • Charlotte’s Web CBD to Elect 2 New Board Directors

    Charlotte’s Web CBD to Elect 2 New Board Directors

    Photo: Mariakray

    Charlotte’s Web Holdings will elect new directors at its annual meeting on June 13. The company has proposed reducing the number of directors from seven to six.

    The following directors’ terms on the company’s board of directors will expire effective June 13, 2024, and they will not stand for reelection:

    • John D. Held, who joined the board in May 2018 and serves as chairperson of the board and chair of the corporate governance and nominating committee;
    • Thomas Lardieri, who joined the board in August 2022 and serves on the corporate governance and nominating committee and as chair of the audit committee;
    • Alicia Morga, who joined the board in December 2022 and serves on the audit committee and the compensation committee.

    “Charlotte’s Web is grateful for the valuable contributions and guidance that each of these directors have provided during their time on the board. Their expertise and dedication have been instrumental in navigating through critical phases of our transformation in a challenging unregulated category,” said Charlotte’s Web CEO William Morachnick in a statement.

    The board has proposed to nominate the following current directors for reelection:

    • Jonathan Atwood, group head of business communications for BAT;
    • Matthew E. McCarthy (independent), former CEO and board member of Ben & Jerry’s Homemade and senior executive at Unilever;
    • Angela McElwee (independent), former president and CEO and board member of Gaia Herbs;
    • William Morachnick, Charlotte’s Web CEO and former president at Santa Fe Reynolds Tobacco International in Zurich, Switzerland.

    In addition, the board has proposed to nominate Jared Stanley and Maureen Usifer as new appointments to the board.

  • Florida has First-in-Nation Disposable Vape Registry

    Florida has First-in-Nation Disposable Vape Registry

    Credit: Ball Studios

    Florida’s governor, Ron DeSantis, has signed legislation intended to crack down on the sale of unauthorized vapes that the state deems attractive to children.

    The new law (HB 1007), however, only targets disposable vaping products not authorized by the U.S. Food and Drug Administration. The rules will be enforced beginning Oct. 1.

    Unlike other state registry lists, Florida is the first state in the nation to include a carve-out for refillable pod systems and open-system vaping products, as well as bottled e-liquids.

    Florida Smoke Free Association president and vape shop owner Nick Orlando was the driving force behind getting the open system exemption.

    In its original form, the bill would have prohibited sales of any vape products that had not yet received FDA approval, according to media reports.

    The law now directs the state’s Department of Legal Affairs to develop and maintain a directory listing all single-use nicotine vapes it deems attractive to minors. The department must make the list publicly available on Jan. 1, 2025, and regularly update it.

    Once a product is added to the list, retailers and wholesalers in Florida have 60 days to sell or remove it from their inventory. Any products left in circulation will be subject to seizure and destruction.

    Beginning March 1, 2025, manufacturers that sell prohibited products in the state will face a $1,000 daily fine for each such product until it’s removed from the market. This stricture will also apply to retailers, wholesalers and distributors that ship products into Florida.

    Any person who sells a nicotine product, including vapes, to someone under 21 for a third or subsequent time will face a third-degree felony charge, punishable by up to $5,000 in fines and five years in prison.

  • Vapor Makers Urged to Implement Graphic Warnings

    Vapor Makers Urged to Implement Graphic Warnings

    Image: natatravel

    The Philippines’s Department of Health (DOH) is urging businesses, distributors and importers to start printing graphic health warnings (GHW) on vaporized products, reports Tribune.

    The first set of GHW templates for vape products is set to take effect on May 12.

    Under Republic Act No. 11900, also known as the Vape Law,

    Operators who fail to comply with the new rules risk fines of between PHP2 million and PHP5 million and imprisonment of up to six years.

    Manufacturers, importers, distributors and sellers may also face revocation or cancellation of permits and licenses as well as immediate recall, ban, or confiscation of products at the direction of the Bureau of Internal Revenue.

    In addition, foreign individuals found in violation risk deportation.

  • Altria Wants FDA to Crack Down on Illegal Vapes

    Altria Wants FDA to Crack Down on Illegal Vapes

    Altria sign
    Vapor Voice archives

    Altria Group Inc. is calling on the U.S. Food and Drug Administration to do more to crack down on unauthorized vaping products that compete with its own authorized products produced by Njoy.

    “We believe the FDA’s enforcement approach is not of the scale or scope needed to bring about fundamental change in the marketplace,” Altria CEO Billy Gifford said on the company’s first-quarter earnings call.

    He described the proliferation of e-cigarettes that the agency hasn’t authorized as a “threat to public health.”

    Altria’s reported revenue fell 2.5 percent year-over-year to $5.58 billion. The drop was primarily driven by lower net revenues in the smokeable products segment, partially offset by higher revenue in the oral tobacco products segment and all other categories, according to media reports.

    Altria’s (MO) revenue net of excise taxes decreased 1.0 percent to $4.7 billion. Adjusted diluted EPS decreased 2.5% to $1.15 to match the consensus expectation, primarily driven by lower adjusted OCI, partially offset by fewer shares outstanding.

    “In spite of the absence of an effective regulatory environment, we saw continued early momentum from NJOY and believe our businesses are on track to deliver against full-year plans,” said Gifford. “We also demonstrated our continued commitment to maximizing the return on our investments and delivering strong shareholder returns through the sale of a portion of our investment in ABI and the subsequent expansion of our share repurchase program in March.”

  • UKVIA Updates Suppliers on Changing U.K. Rules

    UKVIA Updates Suppliers on Changing U.K. Rules

    John Dunne (Photo: UKVIA)

    John Dunne, director general of the U.K. Vaping Industry Association (UKVIA), traveled to China to educate vape companies on Britain’s changing regulatory landscape.

    The U.K. will ban disposable e-cigarettes from April next year, and the Tobacco and Vapes Bill, which is currently working its way through Parliament, seeks to give ministers unprecedented powers to ban flavors and decide how vapes are packaged and sold.

    Speaking at the headquarters of the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce (ECCC), Dunne shared his expert knowledge to conduct on-site compliance training to some of the world’s leading vape companies, including Elf Bar, SKE, ELUX, HQD, Hangsen, Greensound, Aspire, ICCPP, RELX, ALD, Uwell and Zinwi.

    Describing the U.K. regulatory landscape as “complex and changeable,” Dunne said issues such as the protection of minors, battery recycling and environmental protection were high on the agenda of politicians, regulators and the general public.

    “It is absolutely vital that all companies operating in the U.K. are fully compliant with all local laws and work at all times to show the industry in the best possible light,” he said in a statement.

    Dunne said the UKVIA would continue to work with the ECCC to help members comply with current requirements, prepare for future regulatory change and to foster global cooperation to promote the development and prosperity of the global vaping industry.

  • U.K. Misleading Public on Relative Risk: Gilchrist

    U.K. Misleading Public on Relative Risk: Gilchrist

    Mora Gilchrist (Photo: PMI)

    Philip Morris International has accused the U.K. Department of Health of spreading misinformation about heated-tobacco products after a social media post warning that “all forms of tobacco are harmful,” reports The Grocer.

    A tweet posted by the department in a thread of “myths” about vaping and tobacco contained false and misleading statements and risks driving consumers back to cigarettes or dissuading current smokers from making the switch to alternatives, according to the multinational.

    “What hope do adult smokers have when seeking out accurate information on smoke-free products if it’s the government that’s spreading misinformation?” said PMI Chief Communications Officer Moira Gilchrist.

    “All forms of tobacco are harmful, and there is no evidence that heated-tobacco products are effective for helping people to quit smoking,” the tweet stated.

    “Laboratory studies show clear evidence of toxicity from heated-tobacco products. Unlike vapes, there is no evidence they are effective for helping people to quit smoking,” the post continues, citing a 2017 report by the Committee on Toxicity.

    According to Gilchrist, such statements “distort the scientific evidence base” and “seriously misleads the public.”

    While acknowledging that heated tobaccos are not risk-free, Gilchrist said it is misleading to imply that all forms of tobacco are equally harmful.

    A Public Health England report in 2018 said that available evidence suggested that heated-tobacco products “may be considerably less harmful than tobacco cigarettes” but “more harmful than e-cigarettes.”

    The Grocer

  • Former Researcher Sues KT&G Over E-Cig Patents

    Former Researcher Sues KT&G Over E-Cig Patents

    Photo: Ian O’Hanlon

    A former KT&G Corp researcher has filed a lawsuit against his former employer claiming that he was insufficiently compensated for inventing “the world’s first e-cigarette” while working at the firm, reports the Yonhap News Agency.

    Kwak Dae-geun demands KRW2.8 trillion ($2 billion), reportedly the highest amount ever claimed by an individual in a South Korean legal action

    According to the suit, Kwak joined the Korea Ginseng and Tobacco Research Institute in 1991 and began developing a tobacco-heating product in 2005.

     In July that year, he registered his first patent for a prototype. In December 2006, he registered another patent for an upgraded version with a controllable heater.

    Subsequently, he developed a full e-cigarette set, and registered a patent for part of the device in 2007 before leaving the company in 2010 as part of corporate restructuring.

    After Kwak’s departure, KT&G allegedly registered patents for some of his technologies without recognizing his contributions.

    In addition to his claim about compensation, Kwak contends that a prominent rival global tobacco firm was able to commercialize its internal heating-based e-cigarette model in South Korea in 2017 due to the absence of overseas patents.

    Kwak’s requested damages reflects his portion of the revenue KT&G is expected to generate through Kwak’s patented technology during the 20-year patent term, as well as what KT&G would have earned if it had registered patents overseas.

    KT&G counters that it has properly rewarded Kwan in the form of offering a technology advisory deal, and that Kwak had agreed not to raise any legal issues.

    The firm also said the technologies invented by Kwak are not currently used in the products it is selling.

    The e-cigarettes being sold by the global firm in question, meanwhile, did not involve technologies patented by Kwak, according to KT&G, which also noted that the rival firm had already commercialized early-model heated tobacco-type products in 1998.

  • Civil Money Penalties for 22 Retailers for Elfbar Sales

    Civil Money Penalties for 22 Retailers for Elfbar Sales

    Credit: Jeff McCollough

    The U.S. Food and Drug Administration today announced the issuance of complaints for civil money penalties (CMPs) against 20 brick-and-mortar retailers and two online retailers for selling unauthorized e-cigarettes, including Elf Bar, a popular youth-appealing brand.

    The regulatory agency previously issued warning letters to these retailers for selling unauthorized tobacco products. However, according to an FDA release, follow-up inspections revealed that the retailers had failed to correct the violations.

    Accordingly, the agency is now seeking a CMP of approximately $20,000 from each retailer.

    The approximately $20,000 CMP sought from each retailer is consistent with similar CMPs sought against retailers for the sale of unauthorized Elf Bar products over the last few months, including in Sept., Nov., Dec. and Feb.

    The retailers can pay the penalty, enter into a settlement agreement, request an extension to respond, or request a hearing. Retailers that do not take action within 30 days after receiving a complaint risk a default order imposing the full penalty amount.

  • Brazil Agency Upholds Ban on Vaping Product Sales

    Brazil Agency Upholds Ban on Vaping Product Sales

    Credit: Dragon Claws

    The board of directors for the Brazilian Health Surveillance Agency (Anvisa) voted unanimously on April 19 to maintain a ban on the sale of e-cigarettes and other vaping products.

    Manufacturing, selling, importing, and advertising vapes has been banned in the country since 2009, but e-cigarettes are easily found in small shops and online stores across Brazil. And consumption, especially among young people, is on the rise.

    According to a survey by the Brazilian Institute of Geography and Statistics (IBGE), a federal government agency that gathers population data, 16.8 percent of students aged 13 to 17 said they had tried vaping at least once, according to media reports.

    Also, data from Covitel, which carries out surveys related to health matters, reveal that 4 million people have already used electronic cigarettes in Brazil, even though sales have not been authorized for 15 years.

    In 2022, Anvisa approved a technical report that indicated the need to maintain the ban and adopt additional measures to curb irregular e-cigarette sales, including more inspections and educational campaigns about the harms of vaping.

    The agency discussed the case again last week after a public consultation to hear contributions from experts, vape manufacturers, and consumers. Once more, Anvisa took a stance against the sale of vapes and based the decision on four main points.

  • Kazakhstan President Signs Bill Banning Vaping

    Kazakhstan President Signs Bill Banning Vaping

    Credit: Zero Photo

    Kazakhstan’s President Kassym-Jomart Tokayev signed a bill on April 19 that bans the sale and distribution of vaping products, according to the Akorda press service.

    “The law establishes a ban on the sale and distribution of non-smoking tobacco products, vapes, flavors and liquids for them, as well as their advertising,” according to the Akorda.

    Punishment for sale and distribution ranges from fines to arrest. The law will come into force 60 days after publication, according to media reports.

    Astana Akimat (administration) and Kazakh athletes launched a campaign to encourage residents to exchange electronic cigarettes for sports equipment.

    “We want to teach young people through this campaign the importance of engaging in sports and maintaining good health. Together we want to guide them on the right path. We hope that our campaign will motivate many people,” said Kyokushinkan karate athlete Alikhan Asubayev.

    Vaping products collected during the campaign will be disposed of at a specialized plant.