Author: Timothy Donahue

  • E-LiquiTech Parent, TTI, Appoints New President

    E-LiquiTech Parent, TTI, Appoints New President

    Credit: Gajus

    Tobacco Technology has appointed David Johnson as president and chief scientific officer of the company and its wholly owned subsidiaries, E-LiquiTech and Emerald Green Technology. He will be replacing Richard Howell who retired earlier this month after 43 years of service.

    Johnson joined Tobacco Technology as the director of regulatory affairs in 2021. He brings more than 30 years of scientific, regulatory and management experience, including over 20 years in the tobacco industry, to the Tobacco Technology family of companies.

    He received his Ph.D. in chemistry from the University of Mississippi specializing in physical analytical chemistry. In addition, he earned postdoctoral training at the University of North Carolina in Chapel Hill in the mass spectrometry group of Maurice Bursey.

    Johnson acquired much of his tobacco experience at Swedish Match North America, where he was the director of analytical, and at Turning Point Brands, where he was the senior director of scientific and regulatory affairs. Johnson also has a wealth of sales, marketing and Six Sigma experience from his years working with DuPont.

  • Unintended Consequences

    Unintended Consequences

    The number of crimes committed at specialty retail outlets has grown dramatically over the past few years.

    By Timothy S. Donahue

    Every year, hundreds if not thousands of cannabis dispensaries, vape shops and tobacco outlets are robbed or burglarized in the U.S. On July 10, in Lincoln, Nebraska, between 2 a.m. and 5 a.m., the police department responded to alarms at two vape shops where officers found shattered storefront glass at both locations. The thieves targeted CBD (cannabidiol) and Delta-8 THC (tetrahydrocannabinol) products. The pair of break-ins happened two days after another similar burglary, totaling three in as many days. The businesses lost tens of thousands of dollars in merchandise.

    Timothy Goodman, a manager at the Lincoln Vapor location, said that break-in was just the latest in a string of six incidents in approximately the last two years, according to news reports. Goodman, who has worked at Lincoln Vapor for nearly four years, said it’s his understanding that every break-in can be linked back to the same group.

    The burglars stole $2,000–$3,000 worth of merchandise in May 2021 and have lifted around $16,000 in products from the business through the last year and a half, according to Goodman. Most products were hardware and cannabis products, such as CBD and Delta-8 THC. “It’s frustrating beyond belief,” he said. “I wake up most nights in the middle of the night and check the cameras to make sure nobody got in.”

    The rise in vape shop crimes may be an unintended consequence of recent regulatory actions, such as tax increases, flavor bans and raising the age to purchase vaping and tobacco products to 21, according to many industry experts. Richard Marianos, a senior law enforcement consultant who has served more than 27 years at the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and who is now a consultant and adjunct lecturer at Georgetown University, says crime is often an unintended and overlooked consequence of regulatory constraints on the marketplace that encourage the growth of black markets.

    Credit: Lexington Police Dept.

    Marianos said that taxes and flavor bans bring prohibition, and prohibition brings crime. “These regulatory actions mean a dramatic increase in street sales to kids, and that is what we have seen all over the United States,” said Marianos. “If you have any form of tobacco harm reduction in your state, just throw that completely out the window [if you are going to implement flavor bans and raise taxes exorbitantly] because it forces young adults and people who can’t afford these products into a growing black market. In terms of law enforcement, the issue is that there has been 150 percent increase in smash-and-grabs because of the difficulty of purchasing these products.”

    Sam Salaymeh, president and CEO of AMV Holdings, parent to a chain of 113 Kure CBD & Vape shops across the U.S., said that his stores have seen a major increase in crime over the past two years. During Covid-19 lockdowns in 2020 through early 2021, AMV stores had over 20 burglaries combined. “There is a myriad of stories that come with these break-ins, but the main theme is criminals are trying to get to high-value items that are small in size—and that would be the CBD/cannabis products … etc.,” explains Salaymeh. “This is happening more and more across the country.”

    Credit: Manatee County Sheriffs Office

    During a one-hour period on Dec. 20, five separate retail locations—three vape shops and two tobacco/vape outlets—suffered a string of robberies by three men wearing masks that crossed the Southeast region of Los Angeles County. A shop owner said the criminals pretended to be customers when one pulled a gun and demanded money while two others snatched merchandise from the store’s shelves, according to news reports.

    Credit: UK Vapers

    “We now have organized crews that go out and hit multiple stores like convenience stores, gas stations, vape shops in a single night or a weekend … they don’t go for cash registers; they want the tobacco products because they can sell it on the street cheaper than what it’s being sold for with these high taxes and these prohibitions,” says Marianos. “They’re making a fortune in the black market the same way the dope dealers are selling cocaine and heroin because the taxes on vaping and tobacco products are going through the roof.”

    Crimes of convenience 

    In 2020, there were 102,677 robbery incidents and 102,677 offenses reported in the U.S. by 9,991 law enforcement agencies that submitted National Incident-Based Reporting System (NIBRS) data. Nearly 25 percent of those incidents were committed at convenience stores (13,721), gas stations (7,006) and specialty stores, where vape shops are lumped into (5,372) combined. If criminals are looking for quick cash, then robbing convenience stores or small specialty retail shops is one of the best ways to do it, according to the FBI.

    John Cavanaugh, owner of California-based Vaping Industries, says that thieves have broken into his stores numerous times. Typically, thieves try to take what’s immediately available. “They broke in after hours … broke the glass, popped open the register, grabbed the cash, broke into my office, got the petty cash and then rolled out,” he said. “I think we are starting to see more robberies than burglaries lately, and I think that it’s an easier target to hit a vape shop or a smoke shop with guns because the layout is small, there’s only typically one or two employees and—especially with cannabis dispensaries—there’s a lot of cash on hand.”

    Burglary
    Robbery

     

    The terms “burglary” and “robbery” are not interchangeable.

    They have meaningful differences.

    Burglary involves a person illegally entering a building to commit a crime while inside.

    Robbery is typically when someone takes something of value directly from another person using force or fear.

    There is a far greater chance that someone committing a robbery will do so armed compared to burglaries, which typically occur after hours.

    Convenience stores accounted for nearly 13 percent of all violent crimes suffered in 2020, and gas stations accounted for about 12 percent.

    Across North America, crimes involving vapor, tobacco or cannabis shops are getting more violent. On Dec. 3, in Calgary, Canada, officials said a “number of people” entered Jerry’s Smoke and Vape just after 6:30 p.m. According to a police report, one of the suspects pointed a gun at the clerk, and the bandits made off with cash and merchandise.

    On Sept. 12, in British Columbia, a suspect entered a vape shop alone armed with a shotgun. After threatening an employee, the suspect took an undisclosed amount of cash and product before escaping on foot. Over the weekend of May 29 to June 1, 2020, thieves burglarized several cannabis dispensaries, distribution centers and cultivation in Los Angeles, Oakland, San Francisco and other cities, stealing legal commercial cannabis products and cash. On Sept. 11, 2021, in Calgary, Canada, three masked men entered a dispensary armed, held off staff and got away with a quantity of cannabis products.

    Cavanaugh said robberies are more common at cannabis dispensaries than vape shops because cannabis dispensaries have a lot of cash on hand, especially in the U.S. where very few banks will work with marijuana businesses. There are also numerous illegal cannabis dispensaries, which perpetrators know are less likely to notify law enforcement.

    “Before all of this started happening over the last few years, I didn’t really believe in upping my security. Now, I have to make sure that there are panic buttons, that my staff are properly trained for when somebody comes in with guns blazing,” he says. “They need to know to just give it all up. Give them the cash and whatever they want. It’s OK. It isn’t worth your life. I’m also now spending extra money for high-end security cameras and security systems. It’s frustrating.”

    Crime prevention

    According to Marianos, there are several reasons why thieves target convenience stores and gas stations and now vape shops and dispensaries: operating hours and low numbers of staff on site, and these types of stores have smaller layouts, so it’s easier to find the expensive/high demand products and there is the potential for large amounts of cash on-site.

    “You don’t want it to make product accessible where somebody can just take a trash can, throw it through the window and get into your shop and take all your stuff,” says Marianos. “More cameras, limiting the amount of people that are coming in like they do at jewelry stores—these businesses need a similar model that retailers with high-end products have. In some higher crime areas, you may even have to hire a security guard.”

    Vandalism, from smash-and-grab types of crimes, has occurred so often at AMV stores in recent years that Salaymeh says he has a toolkit in his garage ready to go at a moment’s notice with everything needed to board up a store. He says he involuntarily became an expert at it. Salaymeh says that while it is rare for AMV stores to alter operating hours, it is a tactic they have used in the past. He says that having at least two staff members at all times in some locations, installing security cameras and other security measures are the primary tools store owners have in their arsenal to help deter crime.

    “Security cameras help us at least get the story behind what happened and potentially pictures of the thieves. We also try to limit the access potential thieves have to valuable product … and we’ve tried to keep the lights on after hours so that people can actually see that these products aren’t lying around or in display cases,” he says. “We leave the register drawer open so that people, when they walk up, they see there’s no cash.”

    Another unintended consequence of overzealous taxation and regulation is the impact it has on local law enforcement, according to Marianos. He says enacting some of these rules are, in effect, giving police more work to do in terms of harassment violations that have no teeth instead of fighting real crime.

    “Instead of being able to work on what they should be working on—to serve and protect—are we going to be calling the police because someone is vaping a flavor?” he asks. “What is law enforcement going to do with all this nonsense? What are they going to charge the guy with? What is the crime? Do you know what I mean? It becomes an hour and a half just sitting around trying to figure out what we’re going to do here.”

    During his interview with Vapor Voice, Salaymeh’s phone rang. It was the security firm ADT. One of the Kure stores had an alarm going off. He said it happens multiple times a week. There is insurance available for specialty shops, but both Cavanaugh and Salaymeh say it is expensive. The deductible is often higher than the amount of damage suffered during a crime. Both say they rarely, if ever, claim any damages with their insurance companies.

    Credit: Tulsa Police

    Another overlooked result of rising crimes in these specialty sectors is the impact on the economy and the lives of employees. Cavanaugh said that crime has forced him to shutter two stores, and he now struggles to keep the doors open in his remaining location. Increases in crime, overregulation and misinformation concerning the health and safety of vaping, and the causes (illegal THC vaping products) of e-cigarette or vaping use-associated lung injury have been too much to bear.

    “We are doing our best to deal with the reality of today’s vaping industry,” Cavanaugh said. “I want to keep my doors open, and people depend on us; that’s important.”

    Salaymeh says he had to close some stores during the Covid-19 pandemic, some of which were temporary. The closures weren’t all crime-related, he explains, but most of them were. There was a period when stores were not allowed to be open, so burglaries were happening, and stores couldn’t sell anything to try to recover losses. “We’re trying to keep people employed. The height of the pandemic was a very, very, very difficult time for our company and many companies like us. The primary victims of these senseless crimes are the people who don’t have a job to go back to because I shut down 18 stores during that time,” he says. “Think about that.” 

  • Study Finds Vaping May be Less Harmful for Women

    Study Finds Vaping May be Less Harmful for Women

    A new study concludes that vaping could potentially be less harmful for women then men who vape.

    Loren Wold, the study’s senior author and associate dean for research operations at the Ohio State College of Medicine, believes this could be because the females produced a higher amount of an enzyme that breaks down nicotine. According to the study, humans carry a similar level of that enzyme.

    Credit: J.A.

    “The results were surprising. We were shocked at the amount of protection afforded to females,” Wold said. “The theory is that since the enzyme breaks down nicotine so much faster, the nicotine isn’t in the circulation as long and that may be why females exhibit protection from vaping.”

    Funded as part of a $5.5 million grant awarded by the American Heart Association, the Ohio State University study looked at mice between the human equivalent of ages 12 to 30 in an effort to determine the impacts of vaping on young adults.

    Researchers exposed both male and female mice to an e-cigarette aerosol mixture and found that, while heart function in male mice decreased over time, female mice remained unaffected.

    Researchers are now working to determine whether the enzyme can help provide a higher level of protection to human women, according to a release from the Ohio State Wexner Medical Center. Meanwhile, researchers are conducting a similar study to determine the best ways to reduce youth addiction to e-cigarettes.

  • Ontario MPP Reintroduces Anti-Youth Vaping Bill

    Ontario MPP Reintroduces Anti-Youth Vaping Bill

    A lawmaker in Ontario has reintroduced a bill to help prevent youth from taking up e-cigarettes. If passed, the bill would bump the legal age of selling products to 21, prohibit the promotion of vaping products, restrict sale to vape shops and require Ontario Health to do an annual report on vaping usage.

    Credit: FellowNeko

    The bill has earned praise from the Lung Health Association and the Canadian Cancer Society, which both say greater government oversight is required, according to CTV News. Both point to statistics from Health Canada that say the symptoms of vaping, or vaping-related illness, can include cough, fever, shortness of breath, chest pain, diarrhea and abdominal pain.

    “We limit the sale of cannabis, we limit the sale to specialty stores only, we don’t sell cannabis in convenience stores or gas stations, but we sell cigarettes and vaping products in gas stations — that shouldn’t be done,” said Rob Cunningham of the Canadian Cancer Society.

    The Canadian Vaping Association however says not so fast. It said the measures that are being introduced are short-sighted. Executive director Darryl Tempest said the problem is complex and the proposed legislation doesn’t target things like alcohol or tobacco.

    “Vaping is far more effective to get people off combustible tobacco and it’s been proven seven years in a row from the Royal College of Physicians to be 95 per cent less harmful than smoking — where is that consideration in this legislation?” said Tempest.

    He said the one thing we need to understand is that smoking, particularly combustible smoking, is the largest form of preventable death in the nation. According to his figures, there are more than four million smokers in Canada and 1.1 million have chosen a less harmful alternative.

  • Wisconsin Assembly Passes Bill Making 21 Age to Vape

    Wisconsin Assembly Passes Bill Making 21 Age to Vape

    Madison Wisconsin capitol building / Credit: Jryanc

    A bill that would bring the state of Wisconsin into compliance with federal law and raise the minimum age for purchasing tobacco and vaping products from 18 to 21 has passed the Wisconsin Assembly.

    Federal law changed in 2019 and Wisconsin retailers have been enforcing the higher age limit, according to the Associated Press.

    Because of that, the change in state law will have a minimal effect on how much tax revenue comes into the state, according to Wisconsin revenue officials.

    The Assembly passed the bill on a voice vote and it now heads to the Senate.

    If it passes there, it would head to Gov. Tony Evers for his consideration.

  • U.K. Regulators Release E-Cig Pricing Guidance

    U.K. Regulators Release E-Cig Pricing Guidance

    The U.K. Committee of Advertising Practice (CAP) and the Medicines and Healthcare products Regulatory Agency (MHRA) have released an enforcement notice for promotional online pricing of e-cigarettes.

    According to the notice, CAP writes the advertising rules, which are enforced by the Advertising Standards Authority, the U.K.’s independent advertising regulator.

    The enforcement notice relates to the manner in which e-cigarette pricing appears on websites. According to CAP, companies are allowed to present factual information but not in a way that would constitute promotion. The enforcement notice states that some companies are portraying pricing in ways that would be considered promotion, for example, emphasizing discounts and savings.

    “Please take immediate action to ensure your advertising complies,” the notice states. “We will be monitoring websites in the coming months. If we see continued problems in this area, we will take targeted enforcement action to ensure a level playing field. This may include—where advertisers are unwilling to comply—referral to our legal backstop.”

  • U.S. FDA Issues First Warning Letter for Vapor Hardware

    U.S. FDA Issues First Warning Letter for Vapor Hardware

    Sigelei Humvee 80 coil

    The U.S. Food and Drug Administration has issued hundreds of warning letters for vaping products, typically illegal e-liquids. On Tuesday, however, the regulatory agency posted its first warning letter for vaping hardware products. The letter was issued on Feb. 14 to China-based Sigelei Vapor for two coil brands.

    “Our review of the website http://sigelei.com revealed that you manufacture and offer for sale or distribution to customers in the United States ENDS [electronic nicotine-delivery system] products without a marketing authorization order including: Sigelei Humvee 80 and Sigelei 213 Fog Coil,” the warning letter states.

    The letter also states that Sigelei received a “refuse to accept” letter from the FDA on February 5, 2021 in response to the company’s premarket tobacco product applications (PMTAs) for six Sigelei products. “New tobacco products that do not have the required FDA marketing authorization order in effect, including your ENDS products covered by PMTA STN PM0001221 that resulted in a Refuse to Accept determination, are adulterated and misbranded,” the agency wrote.

    The move signals a shift in the FDA’s typical regulatory action against companies selling illegal vaping products. The agency has traditionally only issued letters for e-liquids, but now hardware manufacturers have been put on notice. One manufacturer, who asked to remain anonymous to avoid FDA scrutiny, said the recent action is worrisome.

    “The hardware segment has been operating almost at a near-normal, the same as before PMTAs were due. It hasn’t really hit home yet that FDA has the full intention to start enforcing hardware regulations too,” the manufacturer said. “This is going to hurt several companies and we are going to start to see smaller businesses end their marketing in the U.S.”

    The letter also suggests that the warning is for all Sigelei products and not just the rejected PMTA products. “The violations discussed in this letter do not necessarily constitute an exhaustive list,” the letter states. “You should address any violations that are referenced above, as well as violations that are the same as or similar to those stated above, and promptly take any necessary actions to bring your tobacco products into compliance with the FD&C [Food, Drug & Cosmetics] Act.”

  • Kentucky Bill Would Allow Cities to Pass Vapor Laws

    Kentucky Bill Would Allow Cities to Pass Vapor Laws

    Many states are seeking to limit local governments from passing restrictions beyond state vaping and tobacco laws such as flavor bans. A Kentucky lawmaker, however, has filed a bill to give cities and counties more power to pass their own rules dealing with smoking and vaping.

    According to WKYT.com, Senate Bill 166 would allow cities, counties or other local governments to adopt tougher rules or restrictions than the state allows when it comes to smoking or vaping products.

    Credit: Andreykr

    Tony Florence, the owner of four Lexington vaping stores, told the news agency that the bill would be extremely damaging to because business owners and other vaping advocates would have to fight regulation in every city or county, causing problems for thousands of mom-and-pop style businesses.

    Florence says vaping products generate a lot of tax revenue for the state and he says this bill would be hurtful to a product that he says is less harmful than cigarettes.

    SB 166 is sponsored by Senator Wil Schroder and would impact the use, sale, or distribution of tobacco or vapor products. The bill has been assigned to the Senate Health and Welfare Committee but has not yet been called up for a vote.

  • ITC Bans All Imports of Illicit Juul-Compatible Pods

    ITC Bans All Imports of Illicit Juul-Compatible Pods

    Credit: JHVEPhoto

    The U.S. International Trade Commission (ITC) has issued a general exclusion order that bans the importation of any unauthorized cartridges compatible with the Juul vaping system that infringe Juul Labs’ patented product designs, including compatible flavored pods and refillable pods.

    This ruling follows a filing by Juul Labs submitted to the ITC on July 10, 2020, that sought a general exclusion order directed at all importers of unauthorized cartridges that copy Juul Labs’ patented pod designs without authorization.

    “Today’s ITC ruling represents a major victory against manufacturers of illicit vapor products who seek to bypass regulations and undermine efforts to create a more responsible marketplace for the category,” said Wayne Sobon, vice president, intellectual property at Juul Labs, in a statement.

    “In addition to targeting the importation of all infringing products, regardless of the brand, this sweeping action will provide the additional public benefit of helping rid the market of unauthorized Juul-compatible products that can be modified by the user, such as empty and refillable pods.”

  • Nebraska Bill Would Ban Local Vape Ordinances

    Nebraska Bill Would Ban Local Vape Ordinances

    A new bill introduced in Nebraska would limit localities in how they regulate electronic smoking devices under a bill heard Feb. 17 by the state senate’s Health and Human Services Committee. LB954, introduced by Omaha Sen. Justin Wayne, would prohibit counties and municipalities from adopting ordinances or resolutions regarding electronic smoking devices that are more restrictive than the provisions of the Nebraska Clean Indoor Air Act.

    This would include banning certain smoking devices or flavors, according to state’s legislative website. Wayne said the bill would prevent a “patchwork” of vaping regulations across the state. “It would make it easier for the industry to provide their services to their customers,” he said.

    Credit: Niro World

    Sarah Linden, president of the Nebraska Vape Venders Association, testified in support of the bill. She said the Nebraska Clean Indoor Air Act allows vape shop customers to sample products, but Lincoln and Grand Island have ordinances banning indoor vaping in all circumstances.

    LB954 would standardize the law across the state and enable customers to try out various products before they purchase them. “There’s nothing worse than buying something and deciding you don’t like it once you get home,” Linden said.

    Dave Watts, president of the Nebraska Medical Association, spoke in opposition to the bill. He said state law should apply equally to vaping and cigarettes. “Vaping devices don’t simply emit harmless water vapor … heating the substances in the chamber of a vaping device creates an aerosol,” Watts said. “Unlike water vapor, that aerosol contains nicotine — ultra-fine particles that can worsen asthma — and toxins that are known to cause cancer.”

    Maggie Ballard of Heartland Family Service also testified in opposition to LB954. She said nicotine is a “pilot light” for other addictions and that individuals with substance abuse disorders are better off without it. “Community members want to see less vaping, not more,” Ballard said.

    Also in opposition was Lash Chaffin of the League of Nebraska Municipalities. He said the bill would take away a municipality’s ability to regulate vaping as it sees fit. The committee took no immediate action on LB954.