The U.S. Food & Drug Administration (FDA) does not intend to delay the current Sept. 9, 2020 deadline for the vapor industry to submit applications for marketing authorization before a hearing is scheduled for the plaintiffs in the case.
In a status report filed Wednesday to the U.S. District Court for the District of Columbia, the regulatory agency told the court that it does “not currently plan to seek an extension of the September 9, 2020 premarket application deadline.”
Any extension requested by the plaintiffs could be complicated because the request would have to be approved by the Maryland-based federal court that forced the agency to move the deadline to May 12, 2020 due to a separate lawsuit.
The FDA has already delayed the PMTA deadline due to the Covid-19 pandemic. The deadline was previously scheduled for May 12, 2020 but was moved to Sept. 9. According to the FDA’s status report, the plaintiffs in the case are expected to file a status report requesting their preferred argument date for a further extension.
Scenes like this are rare in Thailand. This vaper in Koh Samui, Thailand could face fines or even jail. (Timothy S. Donahue)
A consumer advocacy group wants the government of Thailand to consider science as basis for ending e-cigarette ban. The group cites Hong Kong’s use of scientific studies as the basis for ending the ban on smoke-free nicotine, including vapor, heat-not-burn tobacco products (HnB) and snus.
Asa Ace Saligupta, who runs consumer group ENDS Cigarette Smoke Thailand, said the Hong Kong Legislative Council (Legco) decided to suspend the discussions on the proposed ban on vaping products, after some members of Legco’s Bills Committee on Smoking cited scientific studies showing that e-cigarettes, HnB and the likes have much lower levels of toxicants compared to combustible cigarettes, according to a release on pressat.co.uk.
He noted that after nine meetings, including three public hearings, the committee which was established in March 2019 decided to end the discussions on the vaping ban on June 2, 2020. The members of the committee also expressed concern that an outright ban would create more illegal channels and that the products could end up in the hands of underage users.
“The Hong Kong experience sets forward a good example of listening to opinions and engaging all parties involved, including the public sector—something that the policymakers in Thailand have avoided so far,” Saligupta said.
Saligupta said his group will petition the Thai government to also set up a committee to study e-cigarettes and find suitable control channels that will enable adult Thai cigarette smokers to find safer alternatives.
“Instead of using electronic cigarettes as a tool to create fear by creating a discourse on children and youth or Covid-19, we want to call on the Thai government to set up an independent committee to seriously study the science, commercial aspects, and regulatory framework for electronic cigarettes like Hong Kong and many other countries,” he said.
Coalition MPs including George Christensen have joined together against Australia’s Health Minister Greg Hunt’s unilateral decision to ban the personal importation of liquid nicotine for vaping from 1 July.
The decision, made by Hunt on Friday after parliament rose for a six-week adjournment, delighted doctors groups but has outraged Liberal and National backbenchers who favor legalisation of vaping, according to an article in The Guardian.
On Wednesday, Christensen said the ban could mean fines of up to $200,000 for those who break the law and import liquid nicotine without a prescription.
“This was all done without any consultation with the public or many government MPs including myself,” he said on Facebook “I completely oppose the move, which could result in people returning to cigarettes or purchasing potentially dangerous alternatives on the black market.”
The Liberal senator James Paterson told Guardian Australia his views “remain unchanged”.
“Vaping is a safer alternative to smoking,” he said. “We should be making it easier for smokers to quit, not harder.
“We should safely regulate vaping like virtually every other developed nation has done.”
In March 2018 the Liberal MPs Trent Zimmerman, Tim Wilson and Andrew Laming voiced support for vaping in dissenting reports of a House of Representatives health committee inquiry.
Zimmerman told Guardian Australia he had done so because he was “convinced vaping could play a major role in moving people from tobacco to a safer product”.
“It is inexplicable to me why the government would act during a pandemic – when all evidence is that smoking increases the health risk for those who catch coronavirus – in a way that could result in more people going back to smoking,” he said.
The Nationals senator Matt Canavan described as “overkill” the move to impose fines “for importing what is in most countries a legal product”.
Australians have started stockpiling e-cigarettes after their government announced it would ban imports of most vapor products, reports the Daily Mail.
From July 1, it will be illegal to import e-cigarettes and refills containing nicotine liquids or salts.
New Zealand’s leading retailer of vaping supplies, Shosha, recorded a 130 percent spike in sales from Australia since the announcement. Shosha also experienced a 44 percent increase in foot traffic compared to the same time last year.
Under Australia’s new regulations, individuals would need to visit a doctor and be issued a prescription to purchase their nicotine containing e-cigarettes or refills.
Even valid prescription holders would still be prohibited from purchasing the devices from overseas themselves.
The ban on importing nicotine e-cigarettes and refills would be in line with existing bans on their sale in each state and territory.
The prohibition would last 12 months while the government conducts a public consultation on the regulation of nicotine products by the Therapeutic Goods Administration.
The regulation would see nicotine products added to the Poisons Standard making them prohibited permanently with the exception of tobacco cigarettes and smoking-cessation products such as gums and patches.
The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) has protested Australia’s ban, saying it will deprive millions of vapers and existing smokers of their rights to access better alternatives to combustible cigarettes.
“Smokers in Australia have been denied access to a proven harm reduction tool and vapers in Australia have yet again been dealt a potentially fatal blow which will see many of the 300,000 strong vaping community go back to smoking cigarettes,” CAPHRA Executive Director Nancy Loucas said in a statement.
The group pointed to studies showing that e-cigarettes are 95-percent less harmful than combustible tobacco because they do not involve combustion. “It has been known for decades that tar, and carcinogens found in tobacco smoke, cause the death and disease associated with smoking, and not nicotine,” CAPHRA stated.
R.J. Reynolds Vapor Co.’s (RJRVC) Vuse Alto and Vuse Ciro e-cigarettes were named two of the Top-10 product pacesetters by Information Resources Inc. (IRI), a data and analytics research group that closely monitors the consumer package goods (CPG) industry.
Each year top CPG brands are recognized as IRI New Product Pacesetters, a list highlighting innovation that are resonating most with consumers.
“Today’s adult nicotine consumers are looking for unique products that fit their modern-day lives, and Vuse has built a portfolio of options that have consumer moments in mind,” said Leila Medeiros, U.S. head of the Vuse brand.
“Our dynamic approach to developing vapor products, paired with our team’s unrivaled industry knowledge, global market scale and commitment to responsible marketing, means we can create brands that adult nicotine consumers prefer, and products that deliver unique, enjoyable and reliable experiences.”
R.J. Reynolds has submitted several Vuse products to the U.S. Food and Drug Administration for marketing authorization.
An Asia-Pacific coalition of tobacco harm reduction advocates has protested the ban imposed by the Australian Therapeutic Goods Administration (TGA) on the importation of nicotine liquids, saying this will deprive millions of Australian vapers and existing smokers of their rights to access better alternatives to combustible cigarettes.
CAPHRA says the ban will only exacerbate the smoking problem which kills 21,000 Australians a year, according to a press release.
The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) said the ban on importation of vaping products for personal use into Australia effective 1 July means that cigarette smokers looking for safer alternatives will no longer be able to import these products for their own personal use.
The ban will cover e-cigarettes containing vaporizer nicotine (nicotine liquids and salts) and nicotine-containing refills. Only doctors or medical suppliers will be allowed to import these products as long as they have a permit from the Health Department.
CAPHRA says the ban will only exacerbate the smoking problem which kills 21,000 Australians a year.
According to the new regulatory framework, vapers will have to visit a general practitioner, get a prescription, and then obtain their vaping liquids from an approved medical dispensary.
“Smokers in Australia have been denied access to a proven harm reduction tool and vapers in Australia have yet again been dealt a potentially fatal blow which will see many of the 300,000 strong vaping community go back to smoking cigarettes,” CAPHRA Executive Director Nancy Loucas said in a statement.
The Netherlands plans to ban flavored vapor products beginning sometime next year. The goal is to make vaping less attractive to young people, the government said on Tuesday.
Flavors currently available range from mojito and strawberry ice cream to mango and chocolate, the government said. With its sweet tastes and perceived lower health risks, vaping has rapidly become popular among young non-smokers, who are often seen to use them as a stepping stone to regular tobacco products, according to an article from Reuters.
“It is unacceptable that 20,000 people die every year in our country from the effects of smoking and that every day around 75 kids start smoking”, deputy health minister Paul Blokhuis said. “The smoke-free generation we see coming also needs to be free of electronic cigarettes.”
The government will refine the tobacco law to include the ban on flavored e-cigarettes, which is likely to take effect in the first half of next year, the government said. Tobacco-flavored vaping products will remain available, mainly to help regular smokers kick their habit, it said.
A Dutch government report in 2017 said that over a quarter of people aged 12-16 said they had tried vaping at least once. Electronic cigarettes and water pipes have been banned in the Netherlands for anyone under the age of 18 since 2016.
Mountain Service Distributors owner says vapor product sales continue to rise in convenience stores.
By Timothy S. Donahue
Refrigerators didn’t exist when Mountain Service Distributors (MSD) began operating in 1929. Situated in the Catskill Mountains of upstate New York, USA, the family-owned distributing company started as an ice delivery service that added candy sales to its portfolio by pure happenstance. Located near where the famous Woodstock Music Festival was held in 1969, Stephen Altman’s—MSD’s current president—father was operating an ice delivery company when a candy manufacturer in Brooklyn, New York, asked the older Altman if he would sell candy along with the ice.
The business was doing well. Then refrigerators started appearing in homes, and no one needed ice deliveries. Candy became the company’s new cash cow. The company kept adding on more and more products such as chips and soft drinks. MSD’s history reads much like the history of convenience stores themselves. As cars became more reliable, gas stations were closing their repair shops, and MSD started using the empty space to sell supplies to travelers and the local community. As the c-store market grew, so did MSD. Stores needed greater varieties of product, so MSD began to increase the number of SKUs it could deliver.
Stephen Altman
“When I was a kid, we sold candy and tobacco and a lot of potato chips. We also had an ice cream business that when my father passed away, his brother, who was a junior partner, had to make a decision [about] because we had all these insulated iceboxes that we would sell ice cream and dry ice [from]. Now he had to replace 500 iceboxes, and he didn’t want to invest in compressor-driven refrigeration for ice cream. He sold the ice cream business,” says Altman. “Twenty or so years later, I became a Slush Puppie distributor. And now I had to buy hundreds and hundreds of machines that made slush. So, it was an interesting turnaround.”
During the TMA digital conference “Unsteady Ground: Shifting Landscapes,” Altman discussed the c-store industry today and how vapor products have become best sellers.
Vapor Voice: How has Mountain Service Distributors faired during the Covid-19 pandemic?
Steve Altman: We’re a convenience store supplier; the reason is not the tobacco element, but we’re able to stay open because we supply groceries to convenience stores. We have had a few issues. Some of the stores that are customers of ours are not allowed to be open, and we have an [accounts receivable] problem where they closed up and didn’t pay their bills. And we’re working through that issue as well.
What we find interesting is that the c-stores that are open—and most of them are open because they carry food—they’re doing very well because a lot of shoppers are afraid to have their bodies in crowded supermarkets. So, they’re buying a lot of groceries in convenience stores where they never did that before.
What has the growth of Mountain Service Distribution been like?
Well, when I started out here full time in 1962, we didn’t do a million dollars in sales a year … There’s only three ways for my kind of business to grow, and it’s probably [the same] for many other businesses. You either get your customers to sell more product, which is very difficult to do, or you obtain new customers. But the biggest growth comes from when you can buy out another distributor and hope to obtain 75 percent of the business. Over [a] period of years, nothing lately, I’ve bought out seven other distributors.
Looking back, was acquisition the proper way to go about your growth?
Oh, absolutely. Some of these were competitors of ours that we always had a high, I guess, business ethics with each other. We didn’t cut each other’s prices. I gained their trust through keeping to that way of doing business … I just bought their inventory, and I helped them collect their accounts receivable. I hired their people.
How large is the complex where MSD is headquartered?
The complex is, at this time, about 100,000 square feet, with 30-foot ceilings, with forklifts and driving around. When I started, it was an icehouse. The walls were a foot thick, filled with sawdust. It was 40 feet by 100 feet, so, that’s what? 4,000 square feet. Now, it’s 100,000 square feet. We [are now doing approximately over $100 million in sales]. It’s not a lot. I am a medium distributor, but we have … one of the highest percentages of bottom line profits there is in the industry. Most distributors’ bottom line isn’t even 1 percent, and ours is over 3 percent.
How many different types of products do you distribute? How many different pieces?
Well, I think we have about 12,000 SKUs. Cigarettes and tobacco, and confectionery, and health and beauty aids, and sundries, and frozen beverage products and coffee products. And we sure sell a lot of water, which I’m not a fan of because retaining and getting drivers with CDL licenses is very difficult. And I don’t like breaking their back with heavy products like water.
We’re really heavy in electronic cigarettes. We have customers all over the country that my son has created because he’s become an expert in the category. And they range from wholesalers and vape shops and even retail chains. Those chains who buy from mega distributors, they don’t pay attention to the category and help the retailer grow it.
Are you only servicing c-stores and other traditional-type brick-and-mortar retailers?
We do prisons. We do vape shops. We do gift shops. We do pizza parlors. We do beach stores when it comes to frozen beverage. And we have six or seven wholesalers that are steady customers. And as I mentioned earlier, we have some chains, and I try to stay away from chains. I can never figure out how to make a profit on them. But we have some chains. We also serve the four casinos that are in the state of New York, not the Indian casinos, but the casinos that were licensed by the state of New York.
What is the state of the tobacco business in c-stores from your experience?
Well, starting with cigarettes, it’s been declining for years, as you are aware. The electronic cigarettes helped the decline. Lately, in the last few months since the pandemic, we’re selling more cigarettes and less vape. But different [rules] of the states we do business with has precluded the vape business a little bit because of the elimination of flavors … Overall, our vape business is up. Our tobacco business started growing a few years ago [when] roll-your-own became popular as the taxes in the Northeast went up dramatically. That’s still alive and doing well. So, overall, in the last 10 years, tobacco was 80 percent of our business; 80 percent of sales, not 80 percent of the profit. Today, it’s about 70 percent.
What types of vapor products are you selling?
We do very little e-liquid. We were selling both open and closed [systems], but now the closed systems have come under the eyes of legislators, and you know what happened with that. In New York state, it’s about to kick in [a flavor ban] on the 17th of May that only allows tobacco flavors. We found that even when we lost the Juul flavors of creme brulee … I had it take them off the market. I guess the steadfast consumer just switched to those [tobacco flavors]. They didn’t give up Juul. They just switched.
Have you seen an increase in sales of other salt nicotine closed systems, such as Leap and Njoy?
We carry them all. Juul has lost some market clout so to speak, but our Juul business is up because my son has created new Juul customers across the country. So, sometimes something happens in the country that doesn’t affect me, such as the flavor ban.
What are the challenges with distributing vapor products?
We constantly debate with United Parcel Service (UPS) that doesn’t like us shipping these things. Of course, they talk about the suit they’ve lost … but that was about cigarette sales to consumers. We don’t ship to consumers. So, we always have an issue with UPS constantly beating us over the head that we can’t be doing this. And we keep telling them we’re not shipping to consumers and blah, blah, blah. We only ship to people that have licenses to carry and sell the product. We are also having supply chain issues with products coming from China.
What have you seen or what do you believe is the issue with the supply chain? Is it mostly shipping?
Well, I think it’s [because of] the [Covid-19 pandemic] that some of these factories had to close up. But, to tell you the truth, Tim, I don’t worry about it. There’s no lack of some kind of product or a plethora of different brand products in my customers’ stores. There’s no shortage at retail. If they’re out of one brand’s orange, then they could a buy something else orange.
Vapor products are starting to overtake your tobacco products business, is that correct?
Oh, oh, it has. Well, when it started out—when Altria and RJ Reynolds went to [a large distribution company] and said, “We’re coming out with these things. What do you need for margin?” that fixed the margin on their products for us [too]. Of course, [the large distribution company] doesn’t have the expenses of most of the distributors. They have no sales force. They don’t have the expense of taking returns from retailers. But [the profit margins on vapor products] were better than tobacco items.
What is the current state of sales growth for vapor products in c-stores?
Other than the customers we have that we ship [to via] UPS Freight or UPS Ground in other states, I think, in my core, where my salesmen call on customers, it’s flat. There’s no decline. There’s no growth. Listen, different consumers get their news in different sources. And this business that happened a number of months ago where vape gets accused of poisoning kids, [the] recent lung disease outbreak found [it] to be caused by black market THC products when it turned out to be illicit home-packed marijuana sticks. The public got turned off. You know what I mean? They read about the problem, but they didn’t read about what the real problem was. Now you have a lot of apprehensive, potential users of electronic cigarettes that won’t go near them because they still think they’re poison.
How are you looking at future growth?
We are also improving [our technology]. If you get the retailer to put his order in with our app on his phone, then the salesman has more time to consult with him, right? And that’s worked. Half our customers place their own orders on our app on their smartphone, and we’re able to show them how to make more money, and then we become more valuable to them.
The New York Stock Exchange (NYSE) has commenced proceedings to delist Pyxus International. Trading in Pyxus’ common stock has been suspended.
The NYSE determined that Pyxus is no longer suitable for listing under after the company filed for relief under Chapter 11 of the United States bankruptcy code. Pyxus does not intend to appeal the NYSE’s determination.
Pyxus’ common stock began to be quoted on the OTC Pink marketplace on June 17, 2020, under the symbol PYXSQ. Investors can find quotes for the company’s common stock on.
Pyxus does not expect a transition to the OTC Pink marketplace to affect the company’s operations.
“The company can provide no assurance that its common stock will continue to trade on this market, whether broker-dealers will continue to provide public quotes of the company’s common stock on this market, whether the trading volume of the company’s common stock will be sufficient to provide for an efficient trading market or whether quotes for the company’s common stock may be blocked by OTC Markets Group in the future,” Pyxus wrote in a statement.
E-cigarettes containing nicotine will remain illegal in Australia for at least another year, reports The Daily Mail.
The federal government is extending a ban on the importation of such products unless prescribed by a doctor.
The ban will remain in place for 12 months to allow for public consultation on the regulation of nicotine products by the Therapeutic Goods Administration.
Under the ban, Australians would still be able to vape nicotine if their doctor provides a prescription.
They would get their e-cigarettes or refills via a permission granted by the health department to a doctor or medical supplier who would be able to import the goods using a courier service or by cargo service.
The goods cannot be imported through international mail.
The Australian Medical Association (AMA) welcomed the decision, saying that vaping is not a healthy alternative to smoking.
“Nicotine is a highly addictive substance and there is no level of tobacco use which is safe,” AMA Vice President Chris Zappala said.
