Category: News This Week

BAT Korea will Continue Online Vapor Marketing
Recent successful digital marketing efforts reaffirmed BAT Korea’s plans to reach a wider audience for its lower-risk products by promoting them online, according to a spokesperson during “BAT Innovation Day” on Tuesday.
“Sales promotions for Glo Pro last month took place both online and in-store and it was especially well received online and we managed to sell out the stock we prepared quicker than expected,” said Yu Jung-min, head of offline activation at BAT Korea during the online press event. “Diversifying sales channels gave us an opportunity to rebound from a recent decline.”
The global tobacco company used the event to showcase its focus on innovation. The company also offered an industry-first virtual factory tour during the event, demonstrating the technology behind its manufacturing facility in Sacheon, South Gyeongsang Province, where the company is making its first new product of the year, the KENT Double Fresh, and its heat-not-burn (HnB) products, Glo neo sticks.
When asked about the decision to continue to release regular tobacco products despite the company’s emphasis on its environmental, social and governance approach, Yu said sales of regular tobacco products, which account for most of its sales, are essential to ensuring investment, according to an article in The Korea Herald.
The BAT Sacheon Factory, which opened in 2002, is now home to some 1,000 employees. BAT is the first foreign tobacco company with a production facility in the country, the company said.
Last year, the company announced it is teaming up with LS Electric to introduce solar power generation facilities at its Sacheon factory, with construction poised to begin in March When completed, the factory is expected to generate up to 1,435 kilowatts of electricity through solar power, which will constitute a “remarkable amount of carbon reduction,” the company said.
February 16, 2021
New Jersey Wants to Ban Vape Sales in Pharmacies
New Jersey is one step closer to banning pharmacies in the state from selling any deemed tobacco products, including e-cigarettes.
The Senate Health, Human Services and Senior Citizens Committee approved legislation the legislation sponsored by Senator Joe Vitale, S-1144, would prohibit the sale of all tobacco products and electronic smoking devices at pharmacies, however, department stores and food retailers licensed to operate a pharmacy on its premises or lease space to a third party to run a pharmacy would not be subject to the prohibition.
Credit: CVS
“Pharmacies have the important responsibility of making and dispensing medicine to patients in the community and providing them with health advice to help them get well,” said Senator Vitale (D-Middlesex), who is chairman of the Senate’s health committee. “With tobacco as the leading cause of preventable death and disease in the nation, it’s antithetical that pharmacies sell tobacco products and smoking devices.”
Research shows most smokers begin using tobacco products as minors and that pharmacies are an important point of access for young users, Senator Vitale noted in a press release. It also suggests that banning tobacco sales in pharmacies can reduce “tobacco retail outlet density,” which is associated with higher rates of youth usage as well as racial and economic disparities in tobacco use.
The owners of any businesses caught violating the ban would be subject to a civil penalty of not less than $250 for a first violation, $500 for a second violation, and $1,000 for a third or subsequent violation.
The bill exempts food and department stores because previous versions of the bill had stalled in the Senate Budget & Appropriations Committee because they had not included that exemption. CVS has not sold tobacco in its stores nationwide since 2014 while Wegmans stopped selling them in 2008.
February 14, 2021
Vape Shops Paying Price for Selling Counterfeit Products
A vape shop in Wyandotte County in the U.S. state of Kansas business has been ordered to pay $30,000 for selling counterfeit vaping products. Kansas Attorney General Derek Schmidt says a Vinodbhai Patel, operator of Jay Ganegh, LLC, has been ordered to pay $30,000 in penalties for selling fake e-cigarette products.
Credit: Auremar / Dreamstime.com
The company was ordered to pay the civil penalties in a consent judgment that was approved on Tuesday in Wyandotte Co. District Court by Judge Constance Alvery, according to an article on wibw.com. Schmidt said the defendants were also ordered to reimburse the cost of the investigation into their business.
Schmidt said that the consumer protection judgment is the third reached by his office in the past six months that address counterfeit e-cigarette products discovered by his Tobacco Enforcement Unit. Schmidt said in October of 2020, Aaron Dune and Smoke Stax, LLC, were ordered to pay $5,000 in civil penalties and the costs of his investigation in a case filed in Sedgwick Co.
According to the ruling, the defendants knowingly misled customers by falsely representing e-cigarette products to be authentic branded merchandise when they were not. Schmidt said the products involved in the case included both vaping hardware and e-liquids, adding that additional investigations into counterfeit vaping products remain pending.
February 13, 2021
SwissX Warns Shops of Selling Patent Infringing Products
Swissx Labs sent a cease and desist letter to hundreds of companies today demanding they stop selling Juul and other companies that manufacturer patent infringing products within 30 days. The goal is to protect the public from dangerous unapproved uses of its inventor’s IP, according to a press release.
Credit: Bill Oxford
The cease and desist letter demands that stores and chains remove vape products made by Juul and others from their shelves or risk being included in the massive lawsuit already underway for patent infringement. SwissX says it is concerned about the integrity of its inventor’s patent, as well as the safety of the public who may be being put in danger by infringing products.
When the suit is done it is expected the final penalty will top infamous cases on the level of the Enron scandal, the release states. Recipients of the cease and desist letter include 7-11, Speedway, Casey’s, Cumberland Farms, Quick Stop, AMPM, Wawa, ExtraMile and other roadside favorites. Also receiving the letter are major tobacco shop chains such as the 800+ store Smoker Friendly chain. They have 30 days to comply.
“We don’t want innocent retailers to get swept up in this,” said Rudy Delarenta, senior vice president of sales and marketing for SwissX. “That’s why we’re giving them 30 days notice to pull Juul’s infringing products. But if they refuse, we’ll do what we have to do.”
February 12, 2021
U.S. FDA Sends 11 Warning Letters for Illegal Products

The U.S. FDA issued warning letters today to 11 firms who manufacture and sell unauthorized e-liquids for premarket tobacco product application (PMTA) violations. The regulatory agency advised the manufacturers that selling products which lack PMTA authorization is illegal, and therefore cannot be sold or distributed in the U.S. The firms did not submit PMTA by the Sept. 9, 2020 deadline.
The firms receiving warning letters are Jojo’s Smokeless World Inc. d/b/a Mod Shield; Sugar Vapor Company; DC Vapor, Inc.; Take Off Corp; The Vapor Spot, LLC; Premium Vapor Technologies LLC; Vaping Xtreme, LLC; Vapes Gone Wild Juice, LLC; Vapeoholic LLC; Vaporescence LLC d/b/a Vape King USA; and Elemental Vapor Bar, LLC.
Credit: Premium Vapor Technologies
While each warning letter issued today cites specific products as examples, collectively these companies have listed a combined total of more than 150,000 products with the FDA, according to a to the FDA’s website.
Following an initial set of such warning letters announced earlier this year, FDA has continued to issue additional warning letters for these types of products. The FDA sent 10 warning letters in mid-January.
“Per a court order, applications for premarket review for certain deemed new tobacco products on the market as of Aug. 8, 2016—including e-liquids—were required to be submitted to FDA by Sept. 9, 2020. For companies that submitted applications by that deadline, FDA generally intends to continue to defer enforcement for up to one year pending FDA review, unless there is a negative action taken by FDA on the application,” the agency wrote. “In line with the agency’s stated enforcement priorities, after Sept. 9, 2020, FDA is prioritizing enforcement against any ENDS product that continues to be sold and for which the agency has not received a timely product application.”
February 12, 2021
PACT Act Forces DuraSmoke Manufacture Out of Business
Securience, LLC, parent to the DuraSmoke, Forge, AmericaneLiquidStore, and VapeMoar brands, will be going out of business at the end of March 2021.
Credit: Durasmoke
In a letter to its partners, the company states that the recent passing of the Prevent All Cigarette Trafficking (PACT) Act, which prohibits the shipping of vapor products through the U.S. Postal Service (USPS), was the catalyst for the decision to close the company’s doors. The company cites its inability to mail product to consumers, however, the PACT Act also prevents B2B shipments by USPS, according to a representative from the Bureau of Alcohol, Tobacco and Firearms (ATF) who spoke during the recent Tobacco and Vapor Law Symposium presented by the law firm of Keller Heckman.
“Because of the complexity of these new shipping rules, FedEx, UPS, and DHL have all informed us that they will stop shipping vaping products completely — including our shipments to you, our wholesale vape shop customers, and distributors,” wrote Securience owner Don Muehlbauer. “While we have looked at some alternatives, given the geographic locations of our customers, the significant increase in compliance costs, and our capabilities as a small business, we have been unable to find a feasible alternative and have been left in a situation that makes continuing business impossible.”
Securience opened its doors in 2008 and has since been a staple in the vaping industry. Muehlbauer stated that he anticipates the PACT Act will not only impact his company, but many small e-liquid manufacturers. “Those manufacturers who are able to afford the increased compliance costs will have increased shipping costs that may impact [retail] shops,” he wrote. “The last day we will be able to accept orders for shipping is March 25 or until supplies run out.”
February 12, 2021
Counterfeit Juul Factory Shut Down by Chinese Authorities

Chinese authorities have shut down an illicit enterprise involved in the manufacture and international distribution of counterfeit Juul products in China, Juul Labs announced in a press release. The operation resulted in the seizure of more than 110,000 counterfeit products, closure of the production facility and arrest of criminal actors behind the illicit enterprise.
Through its global enforcement operations, Juul Labs was able to identify individuals who were offering suspected counterfeit Juul products at wholesale from China. After in-depth surveillance and monitoring, the company was able to locate a clandestine factory manufacturing counterfeit Juul products for international distribution. Juul Labs then shared this information with Chinese law enforcement and supported its efforts to investigate and raid the illicit factory.
In addition to seizures of counterfeit Juul products, packaging and labeling, officials were able to retain a significant amount of documentation on businesses and individuals with purchase history, which will be used in follow-up investigations and enforcement actions. As a result of the raid, both the factory owner and manager have been arrested and will be subject to criminal prosecution.
The raided factory had thousands of counterfeit packaging for Juul products at 5.0 percent nicotine by weight in various flavors, with production runs ongoing for counterfeit Juul pods in menthol flavor. Juul Labs suspects the that the products were intended for the U.S. market. In addition, the factory appeared to have been manufacturing disposable vapor products under various brand names.
February 11, 2021
ReStalk Partners With Fiber Company to Process Hemp
ReStalk, Inc has entered into a licensing agreement with Sustainable Fiber Technologies (SFT) enabling the company to utilize the SFT’s suite of IP to process hemp into cellulose pulp and biopolymers. These polymers are used to make vapor product packaging, among many other items.
Credit: ReStalk
The partnership allows SFT to assist ReStalk in the developing hemp-based pulp and board products. “ReStalk is an excellent company with the foresight into both the paper and packaging arena. Their team and expertise of hemp cultivars makes ReStalk a perfect licensee for the Phoenix Process,” said Mark Lewis CEO of SFT. “Domestically, the demand for hemp pulp has never been higher, it provides a quality non-wood fiber that competes with softwood fiber.”
ReStalk’s first project with the SFT license will be building a a pulp mill capable of producing100 tons-per-day of pulp. “We’re eager to provide the infrastructure needed to stabilize this re-emerging crop,” said Lucas Hildebrand, ReStalk’s chief strategy officer. “This project will strengthen the supply chain and manufacturing of hemp’s downstream products here in the US. We’re excited to get to work and lay the foundation for a more regenerative model of production.”
As the pandemic caused by COVID-19 continues to disrupt global supply chains, the need for scalable sustainable solutions has never been more necessary, according to a press release. The mill positions ReStalk as the largest supplier of American manufactured hemp pulp.
“Consumer demand for new sources of sustainable packaging is accelerating worldwide. Along with forest-based fibers, we see tremendous interest in hemp and similar alternative agricultural fibers,” said Warren Pullen, executive vice president for Central National Gottesman, a pulp, paper, packaging, tissue and non-wovens distribution. “We believe ReStalk has the potential to successfully address unmet demand for hemp fiber and take green packaging to the next level.”
February 11, 2021
PMI: Smokefree More Than Half of Income by 2025

Photo: PMI
Philip Morris International (PMI) wants smokefree products to account for more than half of its revenues by 2025, up from its earlier target range of 38-42 percent. The new goal was announced during PMI’s 2021 investor day on Feb. 10., a virtual event broadcast from the company’s operation’s center in Lausanne, Switzerland, during which senior management presented PMI’s business strategies and growth outlook.
The company shared its 2021 to 2023 targets, including net revenue and adjusted diluted earnings-per-share (EPS) compound annual organic growth of more than 5 percent and 9 percent, respectively, and 2023 heated tobacco unit shipment volume of 140 to 160 billion units.
PMI plans to launch IQOS ILUMA, the next generation of its IQOS heat-not-burn product featuring internal heating based on Smartcore induction technology, in the second half of 2021.
In addition, the company intends to launch IQOS VEEV, its MESH technology vapor product, in more than 20 markets this year. PMI expects to commercialize IQOS in a total of 100 markets by the end of 2025, from 64 markets at the end of 2020.
Also at the investor day, PMI announced its target of at least $1 billion in net revenues from “beyond nicotine” products in 2025.
With the right regulatory frameworks, dialogue and support from civil society, the company said cigarette sales can end within 10 to 15 years in many countries.
Andre Calantzopoulos
“In just five years, we have thoroughly transformed our company, building IQOS into a top-5 global nicotine brand—with nearly $7 billion in net revenues and over 17 million users across 64 markets—while maintaining our leadership position in the international cigarette category,” said PMI CEO Andre Calantzopoulos in a statement.
“We are now embarking on our next growth phase, further shifting to a better, more sustainable business by driving the development of the smokefree category and leveraging our leading commercial model, which places the consumer at the core, to switch more adult smokers to our smokefree products.”
“This next growth phase is underpinned by our unmatched portfolio of innovative products. We are very excited to announce the planned launch of IQOS ILUMA—the next generation of our IQOS heat-not-burn product featuring a new internal heating induction technology—during the second half of this year.”
“As outlined today, we are well positioned to deliver excellent top- and bottom-line growth, as well as strong shareholder returns. We now aim to be a majority smokefree product company by 2025, an important milestone toward our ambition to deliver a smokefree future, to the benefit of adults who would otherwise continue to smoke, society, the company and our shareholders.”
Philip Morris reaffirmed its full-year 2021 guidance for earnings per share in the range of $5.90 to $6.00. For the three-year period between 2021 and 2023, Philip Morris is guiding for net revenue and adjusted EPS compound annual growth of 5 percent to 9 percent. Cigarette volume is expected to decline in that period. Philip Morris stock has fallen 3.5 percent over the last year while the benchmark S&P 500 index SPX, -0.03 percent is up 16.7 percent for the period.
A transcript and slides of the Investor Day are available at www.pmi.com/2021InvestorDay. An archive of the webcast will be available until 5 pm ET on March 11, 2021.
February 10, 2021
Study: Youth Access to THC Vaping Videos Troubling
The cannabis vaping industry may be making some of the same mistakes as the nicotine vaping industry. A study led by University of Queensland researchers finds that YouTube videos glorifying cannabis vaping as fun and joyful are widely available and easily accessible by youth. The videos studied showed elements of risk-taking behavior including vaping a whole cartridge of THC—the main psychoactive compound in cannabis—in a single setting, and 52 percent of videos had no age access restrictions.
photo: Jeremynathan | Dreamstime
Lead author Ph.D. student Carmen Lim from UQ’s National Centre for Youth Substance Use Research said the volume and accessibility of YouTube videos promoting cannabis vaping was concerning. It was also an issue faced by nicotine vaping companies and is often labeled as a cause for the rise in youth vaping.
“There’s been an increase in the potency of cannabis over the last two decades, and more recently, there has been a significant rise in the number of young people who are vaping cannabis,” Miss Lim said. “Unrestricted access to the large volume of YouTube videos portraying cannabis vaping as fun and joyful could increase uptake among adolescents.”
The UQ research team searched for cannabis vaping videos on YouTube between 2016 and 2020 and categorized these into prominent themes—advertisement, product review, celebratory, reflective, how-to, and warning.
Metrics around the number of views, likes, dislikes, and comments for each video were recorded, according to an article in MedicalXpress. Co-lead author Dr. Gary Chan from UQ’s National Centre for Youth Substance Use Research said many of the YouTube videos on vaping cannabis had no age restrictions, meaning children and adolescents could easily access them.
“Only around 25 percent of cannabis vaping-related videos communicate the potential harms of cannabis vaping,” Chan said. “The videos with a ‘how-to’ theme were viewed more than five million times and videos with a ‘celebratory’ theme, expressing the fun and joy of cannabis vaping, were viewed more than seven million times. As YouTube has become a popular source of accessing cannabis-related information, we need to reduce the accessibility of cannabis-related content to adolescents.”
This is the first study to examine the availability of cannabis vaping videos on YouTube since cannabis became legal in many jurisdictions in North America. The researchers hope the study results are used to inform a future regulatory framework on YouTube and other social media platforms around mandating age restrictions on videos promoting cannabis use.
This research is published in Addiction.
February 10, 2021