Category: News This Week

  • New Zealand Opens Public Vaping Consultation Today

    New Zealand Opens Public Vaping Consultation Today

    Proposed vaping regulations are now open for public comment in New Zealand. The country’s Ministry of Health is encouraging New Zealanders to have their say and provide feedback on draft regulations for electronic nicotine delivery systems (ENDS) under the Smokefree Environments and Regulated Products Act. The online consultation opens today.

    New Zealand flag on boat
    Credit: govt.nz

    An amendment to the Smokefree Environments and Regulated Products Act 1990 (the Act) commenced on 11 November 2020. “The amendment means that vaping products are now controlled in a similar way to tobacco products,” Jane Chambers, group manager at the Ministry of Health, said in a press release. “However, new regulations are required to fully deliver the changes sought by the Government and to support the right settings for the legislation.”

    The health agency is seeking public feedback on the draft regulations because “if we want to get it right, it’s important everyone has a chance to have their say.” Feedback is expected to help shape the final regulations.

    “The proposed regulations cover a range of areas including the display of vaping products in retail stores and websites; the use of harm reduction statements in retail stores and websites; the display of R18 notices at vaping points of sale; packaging requirements for vaping products; and the responsibilities of manufacturers and importers who intend to sell vaping products or smokeless tobacco products.

    “I encourage people to read the draft regulations and provide feedback using the online tool or download the feedback form and email it to vaping@health.govt.nz.

    “This consultation is an important step towards better supporting smokers to switch to regulated products that are less harmful than smoking and to protect children, young people and non-smokers from the risks associated with vaping and smokeless tobacco products,” Chambers said.

    The consultation closes at 5pm on March 15, 2021. The final regulations will be announced sometime after the close of consultation. It is expected they will take effect in August 2021, with anonymous submissions published on the Ministry of Health website.

  • Higher-Nicotine Juul Products May Facilitate Switching

    Higher-Nicotine Juul Products May Facilitate Switching

    Photo: Juul Labs

    The nicotine delivery of Juul products available in the United States and Canada (59 mg/mL or 5 percent nicotine by weight) more closely resembles the nicotine delivery and experience of cigarette smoking than Juul products available in the European Union, which contain 18 mg/mL and/or 9 mg/mL of nicotine, according to a new study from Juul Labs published in Nicotine & Tobacco Research.

    Researchers posited that heavier and more dependent smokers in particular may require the greater nicotine delivery of the higher nicotine concentration Juul pods (59 mg/mL) in order to successfully transition away from cigarettes.

    The new study, which consisted of 24 adult smokers, assessed the nicotine delivery and subjective effects of combustible cigarettes compared to the Juul system with three nicotine concentrations: 59 mg/mL (U.S. and Canada), 18 mg/mL (U.K. and Canada) and 9 mg/mL (U.K.).

    At each of five study visits, participants used one of four Juul products or smoked their usual brand of cigarette during controlled (10 puffs) and ad libitum use (5 minutes) sessions. Blood samples were collected, and levels of nicotine in the bloodstream were measured for each study product. Subjective effects, including relief of craving for cigarettes and withdrawal symptoms, were assessed 30 minutes after participants used each product.

    The higher concentration (59 mg/mL) Juul product delivered significantly greater levels of nicotine and significantly reduced craving and withdrawal compared to the Juul with 18 mg/mL and 9 mg/mL nicotine concentrations. Researchers concluded that the lower nicotine delivery and craving relief from the 18 mg/mL and 9 mg/mL Juul pods available in the EU may limit the product’s ability to provide a satisfying alternative to cigarette smoking—particularly for more dependent adult smokers living in that region.

    “When considering laws and regulations governing nicotine concentration in ENDS, policymakers should bear in mind that the availability of a variety of alternative nicotine products may facilitate even more smokers transitioning away from cigarettes,” said Mark Rubinstein, vice president of global scientific affairs at Juul Labs.

  • Report: Global E-Liquid Market to Reach $3.3 Billion by 2027

    Report: Global E-Liquid Market to Reach $3.3 Billion by 2027

    The global e-liquid market is growing quickly. New data suggests that the market could reach $3.3 billion by 2027. According to a new study by Grand View Research, the market is expected to expand at a CAGR of 13.4 percent from 2021 to 2027.

    man filling e-cigarette
    Credit: Vaporesso

    “The advent of e-cigarette products such as squonk mods and pod systems has increased its popularity and adoption in recent years. The rising demand for these products globally is expected to drive the market over the forecast period,” a press release states. “In addition, the general presumption that these products can reduce the risk of lung disorders is fueling the market. Moreover, the absence of the tobacco burning process that is often found in conventional smoking products is expected to drive the market in the near future.”

    In terms of flavor, the menthol segment is anticipated to register the highest growth rate over the forecast period owing to increasing adoption among young people, especially in students, coupled with its availability at affordable prices, according to the report.

    “In terms of type, the bottled segment is expected to register growth at a significant pace from 2021 to 2027. This can be attributed to the fact that bottles allow users to make their own e-juice by adding two or more e-liquids,” the report states. “In terms of distribution channel, the online segment is anticipated to register a significant growth rate over the forecast period as it provides customers with a wide variety of e-liquids.”

    Regionally, Europe is anticipated to register notable market growth from 2021 to 2027. This can be attributed to rising awareness among individuals about the tobacco-free formulation of e-liquids, according to the report.

    “Market players are focusing on mergers and acquisitions, collaborations, and partnerships in order to expand their distribution networks and build an international presence for their brands,” the reportstates. “For instance, in January 2018, Nicopure, a manufacturer of e-cigarette and e-liquid, announced a partnership with Vapоr Ltd., a distributor of e-cigarette and e-liquid in Bulgaria. Nicopure appointed Vapоr Ltd. as one of its distributors in Bulgaria. The partnership allowed the former to expand its brand presence in Bulgaria.”

    Key players are increasingly investing in the marketing and distribution of their products owing to rising competition in the market. For instance, in July 2019, Turning Point Brands, Inc., a manufacturer, and distributor of consumer products, invested $3.0 million in the Canadian distribution firm ReCreation Marketing. Through the ReCreation Marketing platform, the company launched RipTide, an e-liquid vape technology, and a variety of Nu-X products in Canada.

  • College Students Studying Effects of Vaping in Vehicles

    College Students Studying Effects of Vaping in Vehicles

    A group at East Carolina University is trying to fill in the gaps is trying to fill in some gaps in e-cigarette research.

    lady vaping in car
    Credit: Cape Cod Health

    The researchers are taking a close look at what happens when people vape inside of their vehicles. Researchers say e-cigarette users told them they like vaping instead of smoking actual cigarettes because it doesn’t make their vehicle smell, according to WNCT.com.

    E-cigarette users also don’t worry as much about the effects of second-hand smoke on others in their vehicles. The group is testing that theory with the help of a three-year grant from the National Institute of Health.

    “People are now making a choice to vape inside of vehicles, to vape inside their homes and vape around children, so this is something we need to understand more about,” said Dr. Eric K. Soule with the ECU Department of Health Education.

    Professors believe the project is a great opportunity for ECU undergraduates to get real-world research experience.

  • RELX More Than Doubles Value in Opening IPO

    RELX More Than Doubles Value in Opening IPO

    Chinese e-cigarette maker RLX Technology, parent to the RELX brand, jumped 146 percent in its trading debut after raising $1.4 billion in its U.S. initial public offering.

    relx vaping products
    Creit: RELX

    RLX Technology’s American depositary shares closed at $29.51 Friday, giving the company a market value of about $46 billion. Backed by Sequoia Capital China, the company sold 116.5 million shares for $12 a piece on Thursday after marketing them for $8 to $10.

    The IPO was led by Citigroup Inc. and China Renaissance Holdings Ltd. The company’s ADS, each representing one ordinary share, are trading on the New York Stock Exchange under the symbol RLX.

    The IPO, the first major U.S. listing this year by a China-based company, signals continuing investor demand, according to Bloomberg.

    RLX, founded in 2018, is China’s largest e-cigarette maker with 62.6 percent of the country’s market, according to a report by China Insights Consultancy cited in the company’s IPO prospectus.

    China is the world’s largest potential vaping market, with an estimated 286.7 million adult smokers in 2019, RLX said in its prospectus. But vaping products only have a 1.2 percent penetration rate, compared with 32.4 percent in the U.S.

  • Pyxus Readies to Divest Cannabis Business Interests

    Pyxus Readies to Divest Cannabis Business Interests

    Photo: Pyxus International

    Pyxus International intends to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses. In addition, the company has taken action to restructure its industrial hemp and CBD operations to minimize financial investment in that business.

    “Our strategic decision to exit cash-flow negative cannabinoid operations will allow us to reduce corporate SG&A [Selling, general and administrative expense] and sharpen our focus on growing our more profitable tobacco and e-liquid businesses such that these complementary businesses can fully leverage Pyxus’ 145-year heritage and existing relationships,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.

    “We maintain our belief that there is value in FIGR and its growth can be accelerated with the right capital structure and partner. The completion of our financial restructuring, global operations efficiency program, and continued investment in agronomy, traceability and sustainability are proving to be of significant value to our tobacco customers as we have started to work together on long-term strategic partnerships that support our objective of growing our market share.”

    In connection with the plan, the company’s three Canadian cannabis subsidiaries, FIGR Brands, Canada’s Island Garden (FIGR East) and FIGR Norfolk filed for and received protection from their creditors under the Companies’ Creditors Arrangement Act (Canada).

     

  • California Flavor Ban on Hold, Voters to Decide in 2022

    California Flavor Ban on Hold, Voters to Decide in 2022

    Californians will decide next year if flavored vaping products should be banned. The California Secretary of State’s office certified a referendum challenging the state’s ban on flavored vapor and other tobacco product sales had garnered more than the minimum number of valid signatures. The referendum will head to the ballot in November, 2022.

    lady vaping
    Credit: Elsa Olofsson

    The ban is on hold and retailers can continue selling flavored e-liquids and other products until votes are cast. The ban had been set to go into effect on Jan. 1, 2021, but was delayed until the signature verification process had been completed. I

    n order to qualify for the ballot, organizers of the referendum submitted more than 1 million signatures, as they needed to get 623,212 verified signatures from California voters. On Friday, the Secretary of State’s office published a report indicating that organizers had gathered 781,885 valid signatures.

    Had the minimum number of valid signatures not been met, the law would have taken effect once the Secretary of State had verified the process was complete. The election is scheduled for Nov. 8, 2022, and those results will then need to be certified. If the law banning flavors is approved, it would go into effect on Dec. 8, 2022.

    It did not make it illegal to possess or use such products, however. In addition to the referendum, the state has also been sued over the ban by R.J. Reynolds Tobacco Co., R.J. Reynolds Vapor Co., American Snuff Co. LLC, Santa Fe Natural Tobacco Co. Inc., Philip Morris USA Inc., John Middleton Co., U.S. Smokeless Tobacco Co. LLC, Helix Innovations LLC, Neighborhood Market Association Inc. and Morija LLC, which does business under the name Vapin’ the 619. That litigation is currently ongoing.

  • Next Generation Labs Assigns Patent Rights to Nextera

    Next Generation Labs Assigns Patent Rights to Nextera

    Photo: Martinmark – Dreamstime.com

    Next Generation Labs (NGL), the world’s largest manufacturer of TFN R-S, S and R isomer nicotine, has assigned the rights of its Republic of Korea R-S nicotine manufacturing patent to NextEra Co.

    NGL said it has taken this step “to help strengthen direct in-market enforcement efforts by NextEra against unscrupulous manufacturers who have attempted to ship unauthorized synthetic, nonsynthetic and, in some instances, counterfeit or mislabeled TFN synthetic nicotine vape products into the South Korea market.”

    NextEra is NGL’s exclusive TFN partner and is the largest flavor formulator and distributor of synthetic nicotine vape products in South Korea. Under the assignment, NextEra products containing TFN will continue to be sold, and NextEra will use all means available to protect the market and prohibit violative brands from entering South Korea.

    “This is a strategic patent assignment that will give NextEra the full freedom to use all legal means at its disposal to seek enforcement of existing intellectual property rights related for TFN recreational nicotine in the market,” NGL wrote in a statement

    “Next Generation Labs fully expects NextEra to immediately take action against violators and utilize all necessary legal remedies against any business seeking to either: divert R-S nicotine product sales into South Korea from other markets, attempt to sell mislabeled tobacco-derived nicotine as a synthetic product, or to sell counterfeit TFN products in South Korea,” the company added.

    The terms of the patent transaction have not been made public, and the transaction will not impact Next Generation Labs’ other patents in South Korea or impact control of patents in any other jurisdiction worldwide.

  • USPS Mail Ban of ENDS Could Also Include Hemp Products

    USPS Mail Ban of ENDS Could Also Include Hemp Products

    Words say a lot. It’s especially true in the rule of law. When Congress approved the recent appropriations bill to keep the government running, lawmakers also passed the “Preventing Online Sales of E-Cigarettes to Children Act,” which prohibits the United States Post Office (USPS) from shipping vaping products.

    mailbox
    Credit Anne Onyme

    While the legislation was geared towards nicotine vaping products, the law is so broadly defined that hemp businesses must also prepare to comply, according to Patricia Kovacevic, founder and president of PK Regulatory Strategy. The legislation takes effect in late March – 90 days after its published in the Federal Register. The USPS then has 120 days to issue its rules.

    Speaking during a Smoke-Free Alternatives Trade Association (SFATA) webinar, Kovacevic said that the legislation states that an electronic nicotine delivery system (ENDS) is defined as any device that “delivers nicotine, flavor, or any other substance to the user inhaling from the device.”

    “It’s very broadly defined. It really is any other substance. So even if you inhale, I’m being ridiculous, the air [if inhaled from] a device is still covered,” she said. “So, unfortunately, it’s very broad. That’s actually what makes it worrisome. But that also could be its flaw. [The definition being too inclusive] could be an opportunity to challenge the rule.”

    According to the legislation, anyone selling vaping products must:

    • Register with the U.S. Attorney General
    • Verify age of customers using a commercially available database
    • Use private shipping services that collect an adult signature at the point of delivery
    • If selling in states that tax vaping products, sellers must register with the federal government and with the tobacco tax administrators of the states
    • Collect all applicable local and state taxes, and affix any required tax stamps to the products sold
    • Send each taxing state’s tax administrator a list of all transactions with customers in their state, including the names and addresses of each customer sold to, and the quantities and type of each product sold
    • Maintain records for five years of any “delivery interrupted because the carrier or service determines or has reason to believe that the person ordering the delivery is in violation of the [PACT Act]”

    Both UPS and FedEx have rules against shipping traditional cigarettes and say they will extend those rules to include ENDS products. Violators can receive up to three years in prison, face steep fines and potentially lose their business.

  • CBP Seizes 50,000 Unapproved Vape Pens in Chicago

    CBP Seizes 50,000 Unapproved Vape Pens in Chicago

    U.S. Customs and Border Protections (CBP) officers at Chicago O’Hare’s International Mail Branch seized 50,000 dragster Mountain Vape Pens on Tuesday. The shipment, originated from Hong Kong, and was destined for a residence in Alexandria, Kentucky.

    illegal vape pens
    Credit: CBP

    The U.S. Food and Drug Administration (FDA) determined the shipment violated the Federal Food, Drug, and Cosmetic Act (FD&C Act) as misbranded consumer goods being imported by an unauthorized agent, according to a press release. Tobacco products imported or offered for import into the United States must comply with all applicable U.S. laws. Read more about the FDA’s regulations governing e-cigarettes and other tobacco products.

    The shipment was seized on January 19, and was mis-manifested as Lithium Ion Battereies, a common practice used by smugglers, CBP states. “CBP believed the shipment was intentionally improperly labeled in order to avoid detection,” the release states. “Additionally, CBP presumes the products are being sold without authorization. CBP continues to work diligently to stop non-legitimate products from entering the U.S.” The pens had an MSRP of $450,000.

    “Our officers are dedicated to identifying and intercepting these types of shipments that could potentially harm our communities,” said Shane Campbell, Area Port Director-Chicago. “Customs and Border Protection’s trade enforcement mission places a significant emphasis on intercepting illicit products that could harm American consumers, and we will continue to work with our consumer safety partners to identify and seize unsafe and illicit goods.”

    Last year the FDA announced an increased enforcement priority of electronic nicotine delivery systems, and issued detailed guidance to the industry of these new enforcement priorities that regulate the unauthorized importation of tobacco products.

    CBP provides basic import information about admissibility requirements and the clearance process for e-commerce goods and encourages buyers to confirm that their purchases and the importation of those purchases comply with any state and federal import regulations.

    CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.