Category: News This Week

South Carolina School District Not Joining Juul Lawsuit
South Carolina’s fifth-largest school district, Richland 2 school district will not be joining a class-action lawsuit against Juul Labs the board voted Tuesday. In October, Lexington 1, a neighboring school district, became the first school district in S.C. to join the Juul Labs class-action. It was later joined by Greenville School District in December.
The lawsuit alleges Juul Labs engaged in deceptive marketing practices and marketed its product to minors. Juul Labs has said it has curbed advertising, is less harmful than alternatives and that its customer base is adults.
Board member Amelia McKie made a motion to join the lawsuit, which saw support from district Superintendent Baron Davis, according to an article in The State.
“Sometimes you take on an issue and lend your voice so others who don’t have a voice can have the strength to do so,” Davis said. “So we wanted to join the collective group of school districts that say ‘we believe vaping is wrong and we want to do something about it.’”
The motion to join the suit was a 3-3 vote, meaning it fails. McKie, Cheryl Caution-Parker and Manning voted for joining the suit. Lashonda McFadden, Agostini and Elkins voted against joining the lawsuit. Board member Teresa Holmes was not present at the meeting because she was sick, board chair James Manning said. The board may revisit the issue at a later date.
Board members Monica Elkins and Lindsay Agostini voted against joining the lawsuit because Richland 2 has no data to back up how many students in the district are using Juuls or vapes, they said.
“Richland 2 is a data-driven school district,” Elkins said. “I can’t support something in the dark.”
February 10, 2021
Bidi Vapor Announces PMTA Acceptance Letter
After submitting its PMTA application to the U.S. FDA on Sept. 8, 2020, Bidi Vapor, the producer of the Bidi Stick closed system, announced yesterday that it had received a PMTA acceptance letter from the regulatory agency.
“It has always been our goal to provide a premium vape experience as an option to traditional, combustible tobacco that meets the needs of every adult smoker, age 21 and older,” said Niraj Patel, the president and CEO of Bidi Vapor and Kaival Brands Innovations Group, global distributor of all Bidi brand products “We couldn’t be more pleased that we are one step further in achieving this goal.”
The company now waits for a filing letter from the FDA. The Bidi Stick PMTAs would then move on to the Substantive Review phase where the scientific data is analyzed. The Bidi Stick, is the fastest-growing closed system vaping product in the U.S., based on Goldman Sachs’ equity research report on the Nielsen data for total nicotine volumes in 2020. Nielsen data showed the Bidi Stick as the second-largest disposable electronic nicotine-delivery system (ENDS) offering based on retail sales for previous 52-week period.
The acceptance letter covers all 11 flavors in the Bidi Stick lineup. “Moving to the filing and, we anticipate, to the substantive review phase of the PMTA process is where our months of extensive data collection, investment and hard work assembling 285,000 pages of science-based evidence will pay off,” Patel said. “Receipt of the acceptance letter is a major step, as we await the FDA’s filing letter and then substantive review of our products.”
The press release also states that the Bidi Stick is also the only adult-focused vape product on the market with an ecologically friendly, mass-recycling program. Kaival Brands also recently launched Bidi Vapor ‘s Bidi Pouch, a tobacco-free nicotine pouch.
February 10, 2021
22nd Century and KeyGene Launch Cannabis Platform

Photo: surfwiz17 | Pixabay
22nd Century Group has developed and launched a technology platform that will enable the company and its strategic partners to quickly identify and incorporate commercially valuable traits of hemp/cannabis plants to create new, stable hemp/cannabis lines. The platform incorporates a suite of proprietary molecular tools and a large library of genomic markers and gene-trait correlations. The platform was developed in collaboration with researchers at KeyGene, a global leader in plant research involving high-value genetic traits and increased crop yields.
“This is a major breakthrough. Quickly and easily identifying the genes responsible for specific traits in a plant is a powerful tool for 22nd Century Group and the hemp/cannabis industry as a whole,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.
“That is why we are even now beginning discussions to license this platform to strategic partners to help them improve their plant breeding techniques and to optimize their hemp/cannabis cultivars. We continue to make great advancements through our partnership with KeyGene, and this newly developed molecular breeding platform has the potential to result in exponential growth for the company’s revenues and create new value opportunities for our stakeholders, including shareholders.”
“Using traditional breeding techniques, it typically takes at least eight to 10 years to develop new varieties of hemp/cannabis plants that consistently express important traits,” said Juan Sanchez Tamburrino, vice president of research and development at 22nd Century Group.
“Our new molecular breeding platform can dramatically reduce our development time for new high-value varieties of hemp/cannabis and allows 22nd Century scientists to identify plant lines that carry high levels of major therapeutic cannabinoids, such as cannabidiol, cannabichromene, and other minor therapeutic cannabinoids, like cannabidivarin and tetrahydrocannabivarin.”
Demonstrating how this technology can be used, 22nd Century and KeyGene scientists can now accelerate the selection of specific traits yielding novel cannabinoid profiles. For example, the team was able to select specific markers that predict the gender of hemp/cannabis plants with 99.6 percent accuracy.
February 10, 2021
Pyxus Releases Improved Quarterly Results

Pieter Sikkel (Photo: Pyxus International)
Pyxus International, parent to e-liquid manufacturer Purilum, announced results for its fiscal quarter ended Dec. 31, 2020.
Sales and other operating revenues were $379.6 million for the three months ended Dec. 31, 2020, up from $363.3 million for the three months ended Dec. 31, 2019.
Gross profit as a percent of sales increased to 16.5 percent for the three months ended Dec. 31, 2020, from 15.2 percent for three months ended Dec. 31, 2019.
Net loss improved 62.7 percent to $8.2 million for the three months ended Dec. 31, 2020.
Adjusted EBITDA improved 64.9 percent, to $39.9 million for the three months ended Dec. 31, 2020, from $24.2 million for the three months ended Dec. 31, 2019.
Inventory decreased 11.5 percent to $771.8 million as of Dec. 31, 2020.
“Fiscal year 2021 continues to be a year of evolution for our business,” said Pieter Sikkel, Pyxus’ president and CEO, in a statement. “Since the completion of our financial restructuring, we have undergone a strategic review of all business units and categories in which we operate in order to develop a stronger, more streamlined strategy to improve financial performance.”
The developments in the e-liquids category following the September 2020 PMTA submission deadline, paired with increased enforcement of PMTA regulation, provide an encouraging opportunity for potential future growth.”
In January, Pyxus International announced plans to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses.
Despite recent challenges, the company continues to manage its working capital closely, according to Sikkel. “At Dec. 31, 2020, inventory decreased $100.1 million, or 11.5 percent, to $771.8 million when compared to Dec. 31, 2019,” he said. “Additionally, we expect our uncommitted inventory to be near the midpoint of our stated range of $50 [million] to $150 million by fiscal year end.”
February 10, 2021
Vapor Advocates Attend U.K. Parliament Group Meeting

Mark Pawsey MP and Chairman of the APPG for Vaping
Prominent tobacco harm reduction advocates Gerry Stimson (Knowledge-Action-Change), Clive Bates (The Counterfactual), John Dunne (U.K. Vaping Industry Association) and Daniel Pryor (Adam Smith Institute) attended a virtual meeting organized by the U.K. All-Party Parliamentary Group (APPG) for Vaping, a collection of MPs and Peers focused on e-cigarettes.
The tobacco harm-reduction advocates’ input will be used to advise the U.K. delegation to the Conference of the Parties (COP9) to the World Health Organization’s Framework Convention on Tobacco Control, which is scheduled to take place in the Netherlands this November.
Chaired by Mark Pawsey, the APPG is keen for the U.K. to defend its vaping position internationally, and to promote the successes of British vaping. The expert witnesses highlighted the considerable public health benefits of harm reduction tools, and the potential benefit they could provide around the world.
Tuesday’s evidence session came as the U.K. government continues its own review of tobacco regulations, meaning a busy time for advocates hoping to protect the public potential of vaping.
“I was happy to accept the invitation from the APPG, because the UKVIA believe we have an incredible opportunity to spread the word—that innovative, appropriately-regulated vaping industries save lives,” said Dunne in a statement. “Post-Brexit Britain is newly independent in forums like COP9, and it means we can drive this positive message home like never before.”
February 10, 2021
Ireland has Highest Percentage of Vapers in EU
Ireland has the highest rate of people who use e-cigarettes in the European Union at 7 percent, while the EU average is 2 percent.
Credit: Haiberliu
According to a new survey from Eurobarometer, Ireland also has the highest percentage of people in the EU who use cannabis products at 17 percent. Tim Hayes of the European Commission said the number of Irish people smoking cigarettes has continued to decline, according to breakingnews.ie.
“Luckily, the number of people smoking is steadily declining in Ireland, and now only one in five smoke tobacco on a daily basis,” he said. “Nevertheless, about one in ten smoke e-cigarettes, and surprisingly, almost one in five have smoked cannabis over the last year.”
February 9, 2021
Japan Tobacco to Focus on Heat-not-Burn Products
After forecasting an unexpected slump in profits for this year, Japan Tobacco Inc (JT) said on Tuesday it planned to cut around 1,000 jobs and focus its efforts on winning market share in heat-not-burn (HnB) products such as the Ploom S brand.
Credit: JT
Operating profits for 2021 are expected to fall 23 percent to 363 billion yen ($3.46 billion), compared with the market’s forecast for a slight recovery to 476 billion yen, according to Refinitiv data. JT, despite commanding over half of the domestic cigarette market, has lagged rival Philip Morris in the increasingly popular category of HnB products.
The company said it was looking to cut around 1,000 jobs, offering voluntary and early retirement packages, citing declining sales of conventional cigarettes. At the same time, it said it will bolster investment in what it calls reduced risk products (RRP), including its heat-not-burn Ploom sticks which compete with Philip Morris’ IQOS.
It plans a new heat stick product later this year, aiming to boost its position in Japan, the world’s biggest market for such products as regular e-cigarettes with e-liquids containing nicotine are banned.
“The RRP category in Japan is the most mature and competitive in the world,” JT Group President and CEO Masamichi Terabatake said in a press release. “Reflecting this and the decline of sales volume in recent years… we had to take some difficult yet necessary decisions.”
February 9, 2021
Indiana is One Step Closer to Taxing Vapor Products
Indiana is a little closer to placing a tax on vapor products for the first time at $1.56 for a two-pod package. The U.S. state’s legislature also hope to the tax on combustible cigarettes to $2 a pack. A preliminary estimate projects the increase would bring in $278 million.
Credit: Photo Mix
The committee had put off a vote Monday to draft language specifying 40 percent of the money raised — an estimated $112 million — would go to Medicaid, according to Inside Indiana Business. Crown Point Republican Julie Olthoff, the bill’s author, says smoking-related health problems cost Medicaid more than five times that much.
Indianapolis Democrats Robin Shackleford and Greg Porter still voted no. They want all the money earmarked for a new public health fund. Republicans say there’s a separate bill addressing that. Committee chairman Brad Barrett (R-Richmond) notes both bills are headed for the tax-writing House Ways and Means Committee, which will decide where the money goes in the context of the full budget. He says the health committee vote puts the panel on record as urging that the money be spent on health, not just dumped into the state’s general fund.
Brookston Republican Don Lehe also voted no.
Even if the full House passes it, the bill faces a tougher climb in the Senate. In the last five years, senators have killed three bills to either raise the cigarette tax or tax e-cigarettes.
February 8, 2021
Vapor Product C-Store Sales Up More Than 12 Percent
E-cigarette sales continue to recover from a Covid-19 slump. Sales in C-stores are up 12.7 percent after rising 2.9 percent in the previous data release, according to the latest Nielsen convenience store report released last week. Nielsen does not track vape shop data.
Credit: William Thompson
Sales overall had slumped since February 2020, when the U.S. Food and Drug Administration implemented its latest round of heightened regulations on the products, according to the Winston-Salem Journal. Overall e-cigarette sales-volume growth has declined steadily since Nielsen’s Aug. 10, 2019, report, when it was up 60.2 percent year over year.
On Feb. 6, 2020, the FDA, among other things, required manufacturers of cartridge-based e-cigarettes, such as Juul Labs, R.J. Reynolds Vapor Co., NJoy and Fontem Ventures, to stop making, distributing and selling “unauthorized flavorings” by Feb. 6, or risk enforcement actions.
Top-selling Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 5% uptick in the latest report. By comparison, Reynolds’ Vuse was up 82.2 percent in the latest report and NJoy down 22.3 percent.
Juul’s market share dropped from 52.1percent in the previous report to 51.3 percent. It was at 53.3 percent a year ago. Vuse’s market share climbed from 29.2 percent to 30.6 percent, while No. 3 NJoy slipped from 5 percent to 4.9 percent, and Fontem Ventures’ blu eCigs slipped from 3.5 percent to 3.4 percent.
February 8, 2021
Malaysian Vaping Industry Valued at $558 million
The Malaysian Vape Chamber of Commerce (MVCC) said that the Malaysian vaping industry is valued at RM2.27 billion ($558 million). The figure is one of the primary findings of the recently released “Study on the Malaysian Vaping Industry” report, commissioned by the MVCC.
MVCC president Syed Azaudin Syed Ahma (center) Credit: MVCC
The MVCC has stated previously that the vape industry in Malaysia is too substantial to remain unregulated and has urged the government to immediately introduce appropriate regulations to create a positive multiplier effect to the Malaysian economy.
MVCC commissioned Green Zebras, a market research agency, to conduct the study, the first of its kind in the country, according to a MVCC release. The report found that there are more than 3,300 businesses related directly to the vapor industry, with a workforce of more than 15,000 workers. It was further estimated that workers in vape industry were paid up to RM450 million in wages in total in 2019.
“Our data strongly indicate that this sector is a viable and growing industry in Malaysia and can contribute significantly to the local economy. It has already facilitated the growth of local entrepreneurs, many of which are local and bumiputera businesses,” MVCC president Syed Azaudin Syed Ahmad said. “In addition, the Malaysian vape industry currently has an established ecosystem comprising manufacturers, importers and retailers, and a growing distribution and logistics network.
Credit: MVCC
In Malaysia, the government has already announced an excise tax on vape devices and e-liquids which has been implemented since 1st January 2021, according to thesundaily.com. However, MVCC believes that the tax regime needs to be broadened to include e-liquids with nicotine which make up 97 percent of the Malaysian market, in order to effectively contribute to the government’s revenue.
“The Malaysian vaping industry has significant potential that can be unlocked with practical and comprehensive regulation that must include the use of e-liquids with nicotine. This will spur the growth of SMEs, which will in turn create jobs and generate tax revenue for the Government,” added Syed Azaudin.
Malaysia is in good position to attract FDI into vaping sector as other sectors are seeing challenges to attract investments, according to Syed Azaudin. “MVCC believes the vaping sector is ready and capable to attract quality FDIs given its established ecosystem that global investors and multinational companies would find appealing,” he said.
The global e-cigarette and vape market size is expected to reach $67.31 billion (RM272.54 billion) by 2027, registering a revenue-based CAGR of 23.8 percent from 2020 to 2027, according to a new study conducted by Grand View Research.
“MVCC has spearheaded this study in order to provide the Government with a solid data driven foundation to immediately introduce regulations on the vape industry,” Syed Azaudin said.
To download the full report, visit the MVCC’s website.
February 5, 2021