Author: Timothy Donahue

  • New York City Files Suit for Illegal Online Vape Sales

    New York City Files Suit for Illegal Online Vape Sales

    New York City Mayor Eric Adams and New York City Acting Corporation Counsel Muriel Goode-Trufant announced that the City of New York has filed a federal lawsuit today against a major distributor of disposable flavored e-cigarettes,

    The defendant – Price Point Distributors, Inc., based in Farmingdale, Long Island – is accused of distributing e-cigarettes with flavors such as snow cone, strawberry shortcake, and Hawaii Punch to retail stores and directly to consumers in New York City and around the country through online sales, violating nearly every applicable federal, New York state, and New York City law governing the sale of such products.

    The lawsuit seeks to block Price Point Distributors, Inc., from further sales of these illegal items, seeks both monetary damages and fines, and marks the latest effort by the Adams administration to curb illegal sales of flavored e-cigarettes, which are appealing and addictive, especially to teens, according to media reports.

    “Part of protecting public safety means protecting the health of New Yorkers, including our most vulnerable – our children, who are more susceptible to nicotine addiction, especially when products are flavored to make the taste less harsh,” said Adams. “Protecting young New Yorkers means stubbing out illegal vape and e-cigarette sales that target them.

    “Today’s lawsuit alleges that Price Point Distributors knew it was breaking laws by selling flavored cigarettes to New Yorkers, and even took measures to conceal these illegal sales from federal, state, and local authorities. This lawsuit, as well as our continued efforts to shut down illegal smoke shops, go hand-in-hand with the work our administration is doing to bring down overall crime in our city.”

  • Mexico: Top Court Strikes Down Vape Import Ban

    Mexico: Top Court Strikes Down Vape Import Ban

    Image: nanoenomar

    Mexico’s ban on imports of e-cigarettes and related products is unconstitutional, the nation’s top court ruled, reports Meganoticias.

    The First Chamber of the Supreme Court of Justice of the Nation determined that the prohibition imposes excessive restrictions on commercial freedom of Philip Morris Mexico.

    The ruling is limited to Philip Morris Mexico and does not affect similar products that could be brought to market in the future.

    It protects Philip Morris Mexico from future restrictions and sets a legal precedent that could influence future litigation. The judgment specifies that this protection will be maintained until the government amends its General Import and Export Taxation Act.

    According to the Mexican government, an estimated 938,000 teenagers have tried electronic nicotine delivery systems, and about 160,000 use them regularly

    Despite the import ban, vaping has spread rapidly. In 2023, there were an estimated 2.1 million e-cigarette users in Mexico, compared with 975,000 in 2019.

    The Philip Morris Mexico case stems from an October 2022 Supreme Court ruling that deemed some prohibitions on ENDS unconstitutional and allowed certain groups to apply  for permission to continue the import and sale of these products.

  • Sales, Profits See Massive Growth at Turning Point

    Sales, Profits See Massive Growth at Turning Point

    Stoker’s MST continued to grow share while FRE sales more than quadrupled versus last year’s quarter.

    Turning Point Brands (TPB) announced financial results for the third quarter ended Sept. 30, 2024.

    Total consolidated net sales increased 3.8 percent to $105.6 million compared to the third quarter of 2023. Zig-Zag product net sales increased 5.5 percent during the same period. Stoker’s product net sales increased 12.1 percent. Creative Distribution Solutions net sales decreased 17.4 percent.

    Gross profit increased 4 percent to $53.7 million compared to 2023. Net income increased 14.3 percent to $12.4 million. Adjusted net income increased 9.8 percent to $15.9 million. Adjusted EBITDA increased 11.3 percent to $27.2 million.

    “We were pleased by our third-quarter results,” said TPB president and CEO Graham Purdy in a statement. “We believe Zig-Zag is on a sustainable growth trajectory. Stoker’s MST continued to grow market share while FRE sales more than quadrupled versus year-ago and grew 26 percent sequentially as we continue to expand our national footprint.”

  • Haypp Group Reports 23% Growth in 3rd Quarter

    Haypp Group Reports 23% Growth in 3rd Quarter

    Image: Haypp Group

    The Haypp Group reported net sales of SEK944.2 million ($87.98 million) for the third quarter of 2024, up 23 percent over the comparable 2023 period. At constant currency exchange rates, net sales increased by 25 percent.

    Gross profit increased to SEK134.8 million, while adjusted EBIT for the third quarter increased to SEK33.1 million. In terms of volume, the company’s nicotine pouch business grew 42 percent.

    “Haypp Group retained its strong business momentum in the third quarter of 2024 with net sales growth of 23 percent, the highest rate over the last two years driven by strong performances from all three divisions,” said Haypp Groups CEO Gavin O’Dowd in a statement.

    “Moreover, the Insights business continues to develop as brand owners leverage Haypp Group’s unique and powerful consumer data.”

    The company’s third quarter report is here.

  • Oregon Measure to Ease Path to Cannabis Union

    Oregon Measure to Ease Path to Cannabis Union

    Credit: Media Hain

    In Oregon, Measure 119, which would allow cannabis workers to form unions, passed on Tuesday with a vote of 55% to 45%.

    The measure will require cannabis businesses to enter “labor peace agreements,” promising to stay neutral when union organizers communicate with their workers.

    After lawmakers declined to pass a similar law last year, union representatives brought the measure to voters, arguing the agreements were needed because of uncertainty over how federal labor law applies to cannabis workers, media reports.

    While the measure faced no organized opposition, business interests and attorneys for the Legislature previously argued that the agreements could conflict with federal labor laws.

  • FDA Renews MRTPs for 8 General Snus Products

    FDA Renews MRTPs for 8 General Snus Products

    After a scientific review, the U.S. Food and Drug Administration issued a renewal of modified risk granted orders to Swedish Match USA, Inc., for eight General Snus products.

    With the renewal, the products may continue to be marketed – as they have been authorized to do so since 2019 – with the following modified risk claim: “Using General Snus instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.” 

    The products receiving modified risk granted orders are: General Loose, General Dry Mint Portion Original Mini, General Portion Original Large, General Classic Blend Portion White Large-12ct, General Mint Portion White Large, General Nordic Mint Portion White Large-12ct, General Portion White Large, and General Wintergreen Portion White Large.

    The modified risk granted orders issued by FDA are specific to the products as mentioned above and expire Nov. 7, 2032. If the agency determines that, among other things, the continued marketing of the products no longer benefits the health of the population as a whole, the agency may withdraw the orders.

    “The FDA’s review determined that this modified risk claim is supported by scientific evidence, that consumers understand the claim, and that consumers appropriately perceive the relative risk of these products compared to cigarettes,” the FDA stated in a release. “FDA found that these modified risk products, as actually used by consumers, will significantly reduce harm and the risk of tobacco-related disease to individual tobacco users and benefit the health of the population as a whole.

    “In particular, the available scientific evidence, including long-term epidemiological studies, shows that relative to cigarette smoking, exclusive use of these products poses lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis. The available evidence does not indicate significant youth initiation of these products.”

    The modified risk granted order does not permit the company to market the product with any other modified risk claim that conveys or could mislead consumers into believing that the products are endorsed or approved by FDA, or that the agency deems the products to be safe for use by consumers.

  • Greece Set to Boost Penalties for Youth Vape Sales

    Greece Set to Boost Penalties for Youth Vape Sales

    Credit: Lornet

    Greece is set to introduce a new bill in its Parliament that would impose stricter penalties for businesses supplying alcohol, electronic cigarettes, and vaping devices to minors in the government’s efforts to revamp alcohol laws in the country.

    This is a joint decision made by the ministries of Citizen Protection, Justice, and Health, and it comes after repeated incidents of selling alcohol to under-aged individuals.

    According to sources, violators who sell these harmful products to minors could be punished with imprisonment, financial fines, and other administrative penalties, including the immediate closure of the business involved, media reports.

    Ministerial officials report that past oversights have also been identified regarding the access minors have to these harmful products. Specifically, under the previous government, the number of police officers assigned to enforce the anti-smoking law, for example, had been drastically reduced, penalties had been minimized, and there was also a decision allowing for the use of alcohol by minors at private events.

    The Minister of Justice Giorgos Floridis commented on the new law, “Everything is now becoming stricter for the protection of minors, with increased enforcement.”

  • Nebraska Legalizes Medical Marijuana

    Nebraska Legalizes Medical Marijuana

    Credit: MikesCh112

    Medical marijuana is now legal in the state of Nebraska after voters approved a measure on Tuesday.

    Two medical marijuana ballot measures were on the Nebraska ballot; 70.7% of voters approved Initiative Measure 437, and 66.9% approved Initiative Measure 438, media reports.

    Initiative Measure 437 establishes a new statute that will allow the use, possession, and acquisition of up to 5 ounces of cannabis for medical purposes by a qualified patient with a written recommendation from a health care practitioner. The statute will also allow a caregiver to assist a qualified patient with these activities.

    Initiative Measure 438 establishes a new statute that makes penalties inapplicable under state law for the possession, manufacture, distribution, delivery, and dispensing of cannabis for medical purposes by registered private entities. The statute will also establish a Nebraska Medical Cannabis Commission to regulate such activities.

  • VTA Celebrates Impact of U.S. Vaper Voters

    VTA Celebrates Impact of U.S. Vaper Voters

    The Vapor Technology Association (VTA) celebrated the political currency and success of vaper voters in critical 2024 battleground election states and districts during the recent U.S. elections. According to the trade group, vaper voters helped secure electoral victories for Conservative candidates up and down the ballot.

    VTA says its “I Vape I Vote” campaign activated over 360,000 low-propensity voters to support Conservative principles and candidates, including President-elect Donald Trump, in key battleground states and districts in Arizona, Michigan, Nevada, Ohio, Pennsylvania, Virginia and Wisconsin. 

    “Vaper voters showed up in droves to support Conservative candidates who will protect and preserve the rights of Americans to use flavored vaping products,” said VTA Executive Director Tony Abboud.

    “VTA’s I Vape I Vote campaign made clear that vaper voters had their voices heard at the ballot box and ensured that Conservative candidates would deliver full-throated endorsements of Americans’ right to use flavored vapes and, critically, use that support to establish a voter currency which propelled several Conservative candidates into office.

    “While we are proud to have engaged in the process with several of these Conservative candidates, we are now ready to see their campaign promises committed to action as they work with President-elect Trump and the relevant federal agencies to fix the broken regulatory process by implementing a streamlined regulatory process that ensures access to flavored vapes is protected and companies and distributors have transparent, rational and affordable rules of the road when it comes to this regulatory framework.”

  • Cannabis, Psychedelics Legalization Suffer Losses

    Cannabis, Psychedelics Legalization Suffer Losses

    Credit: Rex and Pan

    Several states suffered losses of bills aimed at legalizing cannabis and psychedelic products.

    Florida voters rejected a ballot measure to legalize marijuana. It got majority support but did not reach the 60 percent threshold needed to be enacted under state law.

    Colorado Gov. Jared Polis explained the benefits of marijuana legalization to Florida voters ahead of their decision on a ballot measure to enact the reform, saying it reduces youth cannabis use, shrinks the illegal market and generates revenue for businesses and state services.

    North Dakota voters defeated a marijuana legalization ballot measure two years after also rejecting a prior initiative to legalize cannabis.

    South Dakota voters rejected a marijuana legalization ballot measure. The state Supreme Court overturned an earlier initiative they approved in 2020.

    Nebraska voters approved two medical cannabis legalization initiatives on the ballot—but the results of the election could potentially be overturned due to ongoing legal challenges.

    Massachusetts voters rejected a psychedelics legalization ballot initiative that would have allowed adults to possess, grow and share certain amounts of substances such as psilocybin, ibogaine and DMT.

    Oregon voters approved a ballot measure to require marijuana businesses to enter into labor peace agreements.

    Texas voters in Dallas, Bastrop and Lockhart approved marijuana decriminalization measures on their local ballots.