Author: Timothy Donahue

  • Job Ads Suggest IQOS Set to Debut in Austin, Texas

    Job Ads Suggest IQOS Set to Debut in Austin, Texas

    Image: Alexander

    The resolution of an IP dispute with BAT has removed a major hurdle to selling the product in the U.S. 

    Philip Morris International is preparing to launch its IQOS heated-tobacco device in Austin, Texas, USA, reports U.S. News. The city will be a testing ground for PMI’s re-entry into the United States after the company resolved an intellectual property dispute with British American Tobacco that had prompted the International Trade Commission to ban imports of IQOS in the United States.

    PMI previously announced that it planned to launch IQOS in four cities in two U.S. states beginning with one city in the second quarter before a larger rollout in 2025. The company did not, however, release details.

    According to U.S. News, LinkedIn job advertisements suggest that PMI is planning to launch the product in Austin. The advertisements were posted this month and include positions such as field sales representatives, territory managers and retail sales advisors.

     

    The U.S. would be a significant market for IQOS. Euromonitor estimates that total U.S. nicotine sales excluding nicotine-replacement therapies were $143.6 billion in 2022. Cigarettes accounted for the majority of sales, but Euromonitor predicts that their value will drop by 30 percent by 2027 and the value of smoking alternatives such as e-cigarettes and nicotine pouches, will increase by 36 percent in the same period.

     

    Investors are waiting to see if PMI can create a heated-tobacco market in the U.S., where vaping is dominant.

    According to Brett Cooper, managing partner and analyst at equity research firm Consumer Edge, Texas offers an interesting trial market due to broad demographics. He noted that diverse cities like Austin, Houston and Dallas provide access to a wide range of consumer groups.

     

    U.S. Centers for Disease Control and Prevention data shows that tobacco taxes in Texas are relatively low, with the excise tax rate on a pack of cigarettes standing at $1.41 in September 2023.

    In January, Texas introduced new e-cigarette laws, banning products that resemble food or that include symbols or celebrities targeted at minors or that depict cartoon-like fictional characters.

    PMI believes IQOS can capture a 10 percent share of the U.S. tobacco and heated-tobacco unit volume by 2030.

     

  • Vaping on the Rise in Singapore Despite Ban

    Vaping on the Rise in Singapore Despite Ban

    Photo: Kalyakan

    Singaporeans are smoking less but vaping more, reports The Straits Times, citing research by Milieu Insight.

    The average number of cigarettes smoked per week fell from 72 sticks in the third quarter of 2021 to 56 in the fourth quarter of 2023.

    Over the same period, consumption of alternative products like e-cigarettes and vaporizers increased from 3.9 percent to 5.2 percent of the population.

    Milieu Insight attributes the gradual decline in cigarettes smoked per week observed since the second quarter of 2022 in part to an increase in proportion of occasional smokers as compared to regular smokers over this period.

    Conducted from Dec. 16 to Dec. 29, 2023, the survey found that the proportion of occasional smokers had increased by 1.2 percentage points to 3.2 percent, from the third quarter of 2021 to the last quarter of 2023. There was also an increase in the number of former smokers over the same period.

    Vaporizers and e-cigarettes have been outlawed in Singapore. Among the reasons cited for their vaping, respondents said they wanted to reduce secondhand smoke and lessen their consumption of traditional cigarettes. The World Health Organization, however, has rejected the products as a cessation aid.

    In December 2023, Singapore’s Ministry of Health and the Health Sciences Authority announced that they were stepping up enforcement and education efforts against vaping to prevent it from gaining a foothold in Singapore.

  • Airscream Readies to Invest in Malaysia Vape Market

    Airscream Readies to Invest in Malaysia Vape Market

    Photo: Airscream

    Airscream UK plans to invest MYR100 million ($21.12 million) in its operations over the next five years and move its headquarters to Malaysia, reports the Business Times.

    The company has already set up administrative, sales and marketing operations as well as a showroom in Shah Alam, with close to 40 employees locally and 100 globally.

    Airscream founder and CEO Sam Ong cited a robust market and vaping industry ecosystem as reasons for the company’s decision.

    Over the past decade, Malaysia’s vaping industry has grown into a MYR3 billion business, providing employment to more than 30,000 Malaysians, according to the Malaysian Vape Chamber of Commerce.

    Ong believes the market is poised for further growth, potentially driving more foreign direct investments into the country and bolstering job creation.

    “We are also encouraged by the passing of the Control of Smoking Products for Public Health Bill 2023, which brings Malaysia on par to other countries around the world, including the U.K., Australia, Thailand and Singapore, which have standalone legislation on tobacco and vape,” Ong was quoted as saying.

    Airscream was established in 2018 as a manufacturer and retailer of the AirsPop vape product.

  • FDA Warns 61 Small Businesses for Selling Elf Bar

    FDA Warns 61 Small Businesses for Selling Elf Bar

    The U.S. Food and Drug Administartion has again issued warning letters to several small businesses for selling illegal vaping products.

    The warning letters handed to 61 brick-and-mortar retailers cite the sale of disposable e-cigarette products marketed under the brand names Elf Bar/EB Design and Lava.

    “These warning letters were a result of FDA’s ongoing monitoring of multiple surveillance systems to identify products that are popular among youth or have youth appeal,” the agency wrote in a release. “Findings from the 2023 National Youth Tobacco Survey found that more than 50 percent of youth who use e-cigarettes reported using the brand Elf Bar.

    “In 2023, the manufacturer of Elf Bar began marketing the product under the name “EB Design.” In addition, the brand Lava was identified as popular or youth-appealing by the agency following review of retail sales data and emerging internal data from a survey among youth.”

    According to the agency, the retailers receiving these warning letters sold or distributed e-cigarette products in the United States that lacked authorization from the FDA, in violation of the Federal Food, Drug, and Cosmetic Act.

    Warning letter recipients are given 15 working days to respond with the steps they will take to correct the violation and to prevent future violations. Failure to promptly correct the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties.

    To date, the FDA has issued more than 550 warning letters and more than 100 civil money penalty actions to retailers for the sale of unauthorized e-cigarettes. However, few retailers respond to the FDA’s actions.

  • Belgium Disposable Ban Won’t Reduce Use: Vape Group

    Belgium Disposable Ban Won’t Reduce Use: Vape Group

    Credit: Carius Badstuber

    A ban on disposable vapes will not reduce consumption, according to a Dutch e-cigarette association press release. The announced sales ban on disposable vapes in Belgium, just like the flavor ban in the Netherlands, will not help young people use fewer e-cigarettes, said Emil ‘t Hart, chairman of the Dutch Industry Association of Electronic Cigarette Sellers (Esigbond).

    With the ban beginning January 1 next year, Belgium wants to ensure that young people, in particular, use fewer products containing the harmful and addictive substance nicotine. “I wonder how enforceable this is. Vapes are also bought in Belgium through all kinds of channels, such as Chinese online stores or Snapchat. But you can’t stop the online trade with a ban,” Hart claimed.

    The chairman said a few days before the Dutch ban came into force in January that people in the Netherlands are circumventing the flavor ban by buying flavored vapes in Belgium and elsewhere. Young people, Hart said, are not as affected by the ban because they too often buy disposable vapes online in China. “The best thing would be to close the gates to China,” he said.

    Belgian Minister of Health Frank Vandenbroucke announced the sales ban this week. According to him, Belgium will become the first country in Europe to ban the sale of disposable vapes.

  • Vaporesso Launches New Products at Vapexpo Paris

    Vaporesso Launches New Products at Vapexpo Paris

    Vaporesso presented four of its latest vaping products, XROS, LUXE, ECO, and ARMOUR at Vapexpo Paris 2024. These new products garnered widespread acclaim from customers.

    The newly launched XROS 4 and XROS 4 MINI feature enhanced flavor profiles and extended pod life with upgraded Corex 2.0 technology. They are aiming to provide users with the best vaping experience, according to a press release.

    Corex 2.0 technology has been refined from its first generation by optimizing morph mesh sizes for ideal temperature matching. This results in faster heating and explosively rich flavors. Additionally, upgraded cotton material efficiently supplies e-liquid, preventing burnt tastes and extending usage life. The Pulse mode ensures robust output support, maintaining consistent performance regardless of battery life.

    The XROS series also stands out for its customization capabilities. XROS 4 and XROS 4 MINI are all equipped with a 0.4 ohm pod cartridge. The XROS 4 offers three output modes along with a display screen for enhanced user interaction, the XROS 4 Mini adds an airflow adjustment feature allowing users to tailor their vaping experience further. Both devices are compatible with the universal XROS pod platform.

    The new offerings also boast an all-aluminum unibody design that not only enhances durability but also provides a more comfortable grip.

    “Innovation is key to delivering superior user experiences,” emphasized Jimmy Hu, vice president of Vaporesso, highlighting the brand’s commitment to setting new standards in vaping and meeting consumer needs through continual improvement.

  • Belgium to Ban Sale of Disposable Vape Devices

    Belgium to Ban Sale of Disposable Vape Devices

    Photo: Bennphoto

    Belgium will ban the sale of disposable e-cigarettes effective Jan. 1, 2025, making it the first EU country to do so, reports The Brussels Times, citing Federal Health Minister Frank Vandenbroucke. The country has received approval from the European Commission for the ban.

    “The disposable e-cigarette causes a lot of damage to society and the environment,” said Vandenbroucke. “This harmful product mainly targets our young people. I am therefore pleased that we can remove this from the market.”

    Vandenbroucke said that marketing for vapes is “very savvy” and “youth-oriented” despite sales of vapes to minors being banned in Belgium. Youth use is widespread, and in 2023, about three in four points of sale sold disposables to minors, according to an inspection.

    “Belgium is playing a pioneering role in Europe to break the power of the tobacco lobby,” Vandenbroucke said upon receiving approval for the ban from the European Commission. “This is another milestone in our fight against tobacco.”

    “We strive for a smoke-free generation and want people, especially young people, to be better protected and to come into less contact with tobacco or alternative smoking methods,” Vandenbroucke said. “With this measure, we ensure that we remove an extremely harmful product from the market, which is also cheap and therefore attractive to young people.”

    Nondisposable e-cigarettes will still be allowed as many use them to quit smoking combustible cigarettes. “Still, we have been able to agree that they can no longer be offered with lights and other things to make them attractive,” Vandenbroucke said. “It should not be a product to start smoking but to stop smoking.”

  • Schmidt Joins Chemular as Senior Consultant

    Schmidt Joins Chemular as Senior Consultant

    Rachael Schmidt

    Chemular, a provider of regulatory and compliance solutions to the tobacco, nicotine, and medical device industry, announced that Rachael Trimpert Schmidt has joined the company as a senior consultant.

    “I am excited to join the Chemular team,” says Schmidt. “I’ve spent a large part of my career immersed in the tobacco industry, identifying issues and opportunities, while shaping its policies through my work with the FDA and the Center for Tobacco Products. I look forward to taking an active role with Chemular and helping its customers pave a smooth path to compliance.”

    Schmidt joins the team from her recent position with the U.S. Food and Drug Administration, where she served as assistant director of Laboratory Compliance & Coordination of the FDA’s Center for Tobacco Products (CTP). In that role, she was responsible for establishing and coordinating all FDA tobacco regulatory laboratories in support of the Family Smoking Prevention and Tobacco Control Act.

    At CTP, she was a key leader, responsible for developing and executing all tobacco product testing programs, including pre-market application reviews, post-market compliance, and adverse events, to support FDA’s tobacco regulatory mission, according to a press release. In her more than 12 years at the CTP, Schmidt engaged with both national and international partners to harmonize tobacco enforcement.

    “Schmidt brings a wealth of knowledge to our team,” says Jason Carignan, chief commercial officer for Chemular. “She’s been deeply involved with developing and implementing regulations within the tobacco industry for many years and has a sharpened ability to identify and address emerging issues. This firsthand experience will ensure that Chemular stays at the forefront of compliance initiatives, and that our customers can launch and keep their products on the market. She is going to be a valuable asset to Chemular and supporting our customers through her insights and action.”

  • Solicitor General Asks SCOTUS for Review of Ruling

    Solicitor General Asks SCOTUS for Review of Ruling

    supreme court of US

    The Office of the Solicitor General filed a petition for certiorari in the case of the U.S. Food and Drug Administration v. Wages & White Lion Investments LLC, asking the Supreme Court to review the U.S. Court of Appeals for the Fifth Circuit’s en banc decision concluding that the FDA’s denial of some premarket tobacco product applications (PMTAs) was arbitrary and capricious.

    According to the SG, a Supreme Court review of the Fifth Circuit’s decision is warranted because the court relied upon “legal theories that have been rejected by other courts of appeals that have reviewed materially similar FDA denial orders.”

    At one level, the federal government’s decision to seek Supreme Court review is what one might expect, according to Reason. However, there is a circuit split on whether the FDA acted in an arbitrary and capricious fashion when it refused to consider certain materials submitted with PMTAs and departed from previous guidance it had given the industry. Most circuits to hear such claims turned them away.

    The Fifth Circuit (along with the Eleventh Circuit) did not. Certiorari would thus be warranted to resolve the circuit split and remove any cloud over the FDA’s continuing ability to review (and deny) PMTAs for vaping products. Without Supreme Court review, vaping product manufacturers would be incentivized to seek review of any PMTA denials in the Fifth and Eleventh Circuits, which could undermine the FDA’s regulatory authority.

  • Switzerland: Illegal E-Liquid Levels in Disposables

    Switzerland: Illegal E-Liquid Levels in Disposables

    Credit: Anthony Brown

    The Swiss Association for Smoking Prevention has said that most disposable electronic cigarettes sold in Switzerland do not comply with the law. The quantity of liquid and nicotine levels exceed the authorized thresholds.

    The standards in force in Switzerland are based on a 2014 European directive. This stipulates that each “electronic cigarette with a so-called closed system”, also known as “puff bars”, may not contain more than 2ml volume of liquid. This corresponds to around 600 puffs.

    However, according to the association’s study, more than half the products sold on the Swiss market exceed this value. Puffs offering 1500 or 2500 puffs are “commonly available” on online sales sites or in stores, according to media reports. But it’s even possible to order puffs online with a 30 ml tank, i.e. 16,000 puffs. That’s 15 times more than the legal limit.

    The survey also denounced excessive nicotine percentages, even though the law stipulates that a disposable electronic cigarette may not contain more than 20 mg/ml of nicotine. Some cantons had reacted and forced certain stores to withdraw these products from sale following a study published in March 2022.

    The association does, however, mention a site where puffs containing a concentration of 50 mg/ml can be purchased. It is also “easy” to order puffs directly from Chinese sites, with no restrictions on volume or nicotine concentration, and have them delivered to Switzerland.