Category: News This Week

  • Hong Kong Ends Discussion, No Ban on Vapor Products

    Hong Kong Ends Discussion, No Ban on Vapor Products

    Credit: Timothy S. Donahue

    Vaping is a safer alternative to smoking, according to a Hong Kong health advisory group. The Hong Kong Legislative Council (Legco) has suspended all discussions on a proposed ban on vaping products. Legco says the products provide smokers with safer smoke-free alternatives.

    Legco’s Bills Committee on Smoking announced it had ceased discussions over the proposed ban on electronic cigarettes, heat-not-burn tobacco products (HTPs) and other electronic nicotine delivery systems on June 2, according to a press release.

    The committee ended its work after nine meetings, including three public hearings, since it was established in March 2019 to tackle the bill that aimed to amend the Smoking Ordinance and impose a blanket ban on vaping or the use of e-cigarettes, HTPs and the likes.

    Hong Kong’s vaping ban was strongly opposed by some members of the committee who cited scientific studies showing that e-cigarettes, HTPs and the likes have much lower levels of toxicants compared to combustible cigarettes.IQOSER, a heated tobacco concern group in Hong Kong, said the end of discussions on the proposed ban on HTPs could hopefully bring lawmakers’ attention to the more important task of addressing the smoking problem. “Smoking incidence remains at more than 10 percent in Hong Kong, which means a tenth of our population is exposed to the health risks brought about by toxicants found in tar, the by-product of tobacco smoke,” said Joe Lo of IQOSER, which is also a member of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA).

    “As we have been saying all along, nicotine is not the problem, but the smoke, which is responsible for thousands of deaths globally each day. Unlike combustible tobacco, e-cigarettes and HTPs do not involve combustion or burning, because they only heat tobacco to a certain degree that is not harmful to humans,” said Lo.

    Nancy Loucas, Executive Coordinator of CAPHRA, noted that Hong Kong, like Japan and Korea, has a high number of former smokers who have switched to reduced-harm products, such as heat-not-burn (HnB) devices.“It was pleasing to see that some of the officials involved in the process to decide the fate of the products strongly opposed the ban based on science that proves that [HnB devices] have a lower level of toxicants compared to cigarettes, whilst addressing the concerns of creating black market in illicit trade in the products,” Loucas said.

    In Hong Kong, many heated tobacco users were forced back to combustible tobacco because of the inability to access the product in the past year, according to Loucas. “Others, with the means, have risked being caught buying through illicit channels. Legislators such as Peter Shui, Raymond Chan and Cheng Chunt-tai, have repeatedly argued that a ban was neither logical nor feasible. More importantly, all three pointed out that adult smokers should not be deprived of the right to choose tobacco harm reduction,” she said.

    Asa Ace Saligupta, who runs consumer group ENDS Cigarette Smoke Thailand, said the country should follow the lead of Hong Kong in putting to rest the discussions on vaping ban. “Lifting the ban on e-cigarettes, HTPs and the likes will provide Thai smokers representing more than 20 percent of our population an opportunity to switch to reduced-risk alternatives. At present, nearly 40 percent of Thai males are at risk of suffering from illnesses caused by the smoking epidemic,” he said.

    Photo Credits: Timothy S. Donahue

    Stephanie Thuesen, director of stakeholder engagement at The Progressive Public Health Alliance, said any restrictive policy on e-cigarettes and HTPs will exacerbate the smoking problem as this will discourage smokers from switching to reduced-risk alternatives. “Tobacco harm reduction should be viewed as a progressive health policy by all countries to put an end to the smoking problem,” she said.

    Kulthida Maneechote of SmokeFree4Life campaign asked tobacco harm reduction advocates and vapers to unite against bans and restrictive policies imposed by countries based on alleged lies fed by the World Health Organization to deprive smokers of less harmful alternatives.

    “Let us challenge the fallacies and unscientific guidelines being spread by the World Health Organization on electronic cigarettes especially with the upcoming WHO Framework Convention of Tobacco Control (WHO FCTC) in November this year [the convention has since been cancelled for 2020]. If left unchallenged, e-cigarettes might be banned by governments altogether. This will put many smokers at risk of not being able to choose a better alternative,” she said.

  • Pyxus Files For Chapter 11

    Pyxus Files For Chapter 11

    Photo: Darren4155 | Dreamstime.com

    Pyxus International announced today that it and its subsidiaries, Alliance One International, Alliance One North America, Alliance One Specialty Products and GSP Properties, have filed voluntary petitions for relief under Chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court for the District of Delaware as part of a “prepackaged” Chapter 11 Case.

    In connection with the filing, the company entered into a restructuring support agreement (RSA) with noteholders holding more than 92 percent in principal amount of the company’s first lien notes and more than 67 percent in principal amount of its second lien notes. In addition, the company’s receivables financing lenders and certain key foreign lenders have granted waivers and amendments under their respective facilities, demonstrating significant global financial support for the company.

    Under the terms of the RSA, Pyxus’ second lien noteholders will convert approximately $635 million of the company’s debt into equity or cash, and its first lien noteholders will, among other things, extend the maturity date of their existing notes by four years. To implement the financial restructuring contemplated under the RSA, the company commenced solicitation of a prepackaged Chapter 11 plan of reorganization and thereafter filed for Chapter 11 to restructure its debt and delever its balance sheet.

    The prepack plan contemplates that all outstanding shares of Pyxus common stock and rights to acquire Pyxus common stock will be cancelled and each holder of outstanding Pyxus common stock will be entitled to receive its ratable share of $1 million in cash provided that such holder does not opt out of the third-party releases contained in the prepack plan or object to the prepack plan.

    The Chapter 11 process does not include the company’s international subsidiaries or affiliates and Pyxus anticipates continuing to operate its worldwide operations in the ordinary course during the proceeding as it restructures its balance sheet. The terms of the restructuring contemplate paying, among others, all vendors and foreign lenders, in full.

    In addition, Pyxus has secured commitments for a $206.7 million debtor-in-possession financing facility (DIP facility) from certain existing noteholders. Proceeds from the DIP facility will be used to refinance the company’s existing asset-based revolver, for working capital and general corporate purposes, and to pay expenses incurred in connection with the Chapter 11 cases. Subject to court approval, the DIP facility, combined with the company’s projected cash flows, are expected to provide liquidity to support its operations during the restructuring process, allowing the company to emerge with a strengthened balance sheet to complement its operations and future growth plans.

    “This agreement with our noteholders represents a significant milestone in the ongoing process to transform our business as we continue to focus on driving long-term, sustainable growth and greater efficiency,” said Pieter Sikkel, Pyxus’ president and CEO. “We will continue to provide our customers with the quality products and services they are accustomed to without interruption and work with our business partners throughout the Court-supervised process. We also expect there will be no impact to vendors. As we look to quickly re-emerge from this process, we expect to be a stronger company, better able to execute on our long-term strategy and positioned for long-term growth and success.”

    Simpson Thacher & Bartlett is serving as legal counsel, and Lazard and RPA Advisors are serving as financial advisors to Pyxus.

  • Online Cannabis, Alcohol and Tobacco Product Sales Surging

    Online Cannabis, Alcohol and Tobacco Product Sales Surging

    Photo: Kaylen Settles

    Online sales for cannabis, alcohol, and vapor and tobacco products are surging. All three markets have been flourishing amid the quarantines especially marijuana.

    Post Covid-19, consumers are ordering online deliveries at a higher rate than ever before. Yet, both are still mired in the slow processing of IDs, according to a story on Valuewalk.com. According to VentureBeat, “Cann, an Oakland, California-based startup that sells low-dose cannabis drinks, told VentureBeat it has seen a 300% month-on-month sales increase in March, more than doubling the total units sold for January and February combined.”

    One of the most critical aspects of ordering cannabis, alcohol, or tobacco products online, verifying IDs, is left to drivers scanning IDs upon arrival. Not only does such a model leave delivery services, like a local restaurant serving to-go margaritas during lockdowns, vulnerable to the legal liabilities of drivers not properly ID’ing customers, but the system is not compatible with the ongoing transition to more seamless e-commerce interfaces.Cannabis, alcohol, and tobacco products

    Physical ID verification brings a litany of problems, such as the customer needing to be present for delivery. It creates more friction throughout the entire process. For the delivery services, like Postmates and Grubhub, verifying ID’s layers costs on top of a business model already running thin margins.

    “As retail stores are forced to go online, everything from alcohol to vape and CBD businesses are seeing a huge surge in online sales,” details Matt Fields, Vice President of AgeChecker “Adults need to help mitigate the risk of selling to minors while remaining compliant with state and federal laws.”

  • UAE: 39% Lower Smoking; 83% Wear Mask During Covid-19

    UAE: 39% Lower Smoking; 83% Wear Mask During Covid-19

    Credit: Calvic Lim

    Thirty-nine percent of smokers cut down on smoking during the Covid-19 ‘StayHome’ period and 83 percent of the people put on face masks and gloves when going out, a poll has revealed.

    The survey was carried out by the Health Promotion Department (HPD) at the Supreme Council for Family Affairs Sharjah, in cooperation with the University of Sharjah. It aimed at investigating the impact of lockdown on dietary behaviour, lifestyle and health practices.

    Enhanced awareness

    The findings reflected people’s enhanced awareness during the pandemic, thanks to the precautionary and preventive measures adopted by the UAE government. The preliminary results showed that 98 percent of those surveyed believed that home isolation was a good way to protect their families and stop the spread of infectious disease outbreaks.

    The poll found that 79 percent of respondents were keen to sterilise the purchased food items and 84 percent of those who have children at home encouraged them to carry out physical activity.

    Lifestyle, dietary changes

    Among the 2,060 participants who were surveyed, 66.7 percent were obese or overweight, 56.6 percent engaged in physical activity before home isolation and out of them, 30 percent reduced their activity after the lockdown. The percentage of people sleeping over seven hours increased from 63 to 70 percent since the lockdown, the survey disclosed.

    As far as eating habits were concerned, 29.4 percent reported weight increase while 32 percent of the people increased their food intake during the Covid-19 ‘StayHome’ period. Besides, 62 percent increased their citrus intake and 50.2 percent their water consumption. Around 38.4 per cent started taking herbal teas, and 94 percent contended that extra intake of vitamins and minerals could strengthen the body against Covid-19, the study revealed.

    It also demonstrated that 67.2 percent felt more stressed during the home isolation amid the lockdown, 42 percent of the respondents felt more irritated and angry than before, even as the majority believed that after lockdown, their lifestyle will improve.

    Supporting national efforts

    Iman Rashid Saif, HPD Director, said: “This study aims primarily to support the national efforts to fight Covid-19 pandemic by gauging the community awareness and developing solutions and recommendations to enhance people’s health awareness and the behaviours they have to adopt during the crisis.”

    “It also aims to investigate to what extent the people are committed to healthy lifestyle, such as physical activity and diet, so that further steps could be taken in the future to improve their quality of life.”

    Dr. Hadia Radwan, assistant professor, University of Sharjah, College of Health Sciences, pointed out: “The comprehensiveness of the data collected, as well as the timing of the study, clearly reflect the lifestyle practices of people during the pandemic which will have key implications on the health of community members.”

    She added that adjusting lifestyles and dietary habits would help boost immunity system to combat viruses. “The findings of this study will be compared with the global data of nutrition and health to be used as a base for indepth future studies,” she said.

  • Australian Regulator Rejects Heat-not-Burn Products

    Australian Regulator Rejects Heat-not-Burn Products

    Photo: PMI

    Australia’s Therapeutic Goods Administration (TGA) on June 10 in an interim decision rejected a request by Philip Morris Australia to adjust nicotine regulations in a manner that would allow the company’s heat-not-burn product (HTP) reach store shelves.

    Currently, only combustible tobacco products such as cigarettes and cigars are permitted to be sold in Australia.

    Philip Morris (PM) spokesperson Simon Breheny called the decision disappointing. “It puts Australia at odds with many other countries who have decided to regulate heated-tobacco and smoke-free alternatives,” he said.

    “The right decision was made,” said Becky Freeman, a researcher from Sydney University’s School of Public Health. “They [HNB products] are not some miracle product that reduces smoking.”

    While Breheny noted that PM will not challenge the interim decision, he maintained that a regulatory mechanism is the appropriate way forward. “People who are looking for these alternatives will continue to make the case for why they are important,” he said.

    The TGA is scheduled to release its full final decision in August.

  • Colorado to Vote on Placing Vapor Tax on Ballot

    Colorado to Vote on Placing Vapor Tax on Ballot

    Credit: Henry Desro

    Colorado lawmakers introduced a measure Thursday to put a tobacco and vaping tax measure on the November ballot.

    The bill — an effort to avoid a costly and difficult campaign to put the measure on the ballot via petition — comes a day before the session was scheduled to conclude. If it clears its first hurdles, lawmakers will need to meet Saturday for a final vote, according to an article in the Denver Post.

    It would also create a tax on nicotine products such as on vape products that would be equal to 50% of the manufacturer’s list price until July 1, 2024; 56% until July 1, 2027; and 62% after.

    House Bill 1427 calls for smaller increases in taxes than the citizen-led Initiative 292, but it comes with a commitment from the governor and proponents that there will be no more taxes on the products for six years, according to a document obtained by The Denver Post.

    The bill calls for asking voters to increase the cigarette tax from 1 cent to 6.5 cents until July 1, 2024; increasing it to 8 cents until July 1, 2027; and then increasing it to 10 cents. It would make the minimum price for a cigarette pack $7 and $70 for a carton until July 1, 2024, and then going up to $7.50 and $75, respectively.

    For the first two and a half years of the tax, $450 million would go toward the state’s general fund and after that, the money would toward preschool education.

  • Louisiana Bill Bans Vaping in Car With Kids

    Louisiana Bill Bans Vaping in Car With Kids

    Vaping with a child in the will be illegal in Louisiana on August 1.

    Louisiana law already prohibited drivers and passengers from smoking cigarettes, pipes or cigars if a child’s in the vehicle. A bill by Gretna Rep. Joe Marino, who has no party affiliation, adds vaping to that list.

    Gov. John Bel Edwards announced Tuesday that he signed the measure into law. The new prohibition takes effect in August.

    The House voted 80-19 for the measure in the regular session that ended June 1, while the Senate agreed 30-0.

  • Breaking: Avail Vapor Agrees to Acquire Giant Vapes

    Breaking: Avail Vapor Agrees to Acquire Giant Vapes

    Credit: Avail

    Avail Vapor, a leading premium U.S. e-liquid retailer, announced today its agreement to acquire Giant Vapes, a major global e-commerce vaping company. The sum of the sale was not announced.

    The acquisition would create a global, omnichannel organization with a clear mission to bring value to customers wherever they choose to shop, according to a press release. “By combining the strengths of Avail’s broad brick and mortar footprint and Giant Vapes’ extensive e-commerce platform the combined company will deliver unique value to its customers both in the US and abroad,” the release states.

    “We are excited about the tremendous promise of this business combination given the strong fundamentals of each company and the overall industry,” said James Xu, CEO and chairman of Avail. “We are delighted to welcome Giant Vapes to the Avail family, and we look forward to providing our customers with an outstanding experience.”

    Following the acquisition, Xu will lead the combined companies alongside Justin Murphy, vice president of Retail and Marketing, who will be overseeing the day-to-day operations of both Avail and Giant Vapes. “The Giant Vapes acquisition cements Avail’s foothold as the key market player with the most holistic approach to commerce in the industry,” the release states. “The combined companies now benefit from Giant Vapes’ best-in-class digital IQ, as well as their extensive and successful wholesale distribution channel. With the completion of this acquisition, the combined company is poised for major industry expansion post FDA’s Premarket Tobacco Product Application (PMTA) deadline of September 2020.”

  • New Missouri Study Shows Decrease in Teen Vaping

    New Missouri Study Shows Decrease in Teen Vaping

    Credit: Christy Ash

    A new student study in Missouri shows a decrease in teen e-cigarette use. The news was a welcome message to the Springfield-Greene County Health Department

    “Our tag line is saving one breath at a time,” said Springfield-Greene County Community Wellness Coordinator, Cara Erwin. The Springfield-Greene County Health Department says students in the county are taking that message seriously, according to a story on KY3.com.

    “In 2020 it showed that e-cigarette use went down twenty percent from 2018,” said Erwin, adding that the data comes from the students. “Missouri Student Survey is conducted once a year. It’s a survey where students are surveyed on their behaviors and perceptions on substance abuse.”

    Erwin said three main components are the reason it went down in Greene County. The age being raised to purchase tobacco and e-cigarettes, the lung related illnesses from e-cigarettes and the health department’s education seminars on the dangers of smoking.

  • Lawsuit Emerges Over Flavored Vapor in Palmdale

    Lawsuit Emerges Over Flavored Vapor in Palmdale

    Gavel
    Photo: Oleg Dudko | Dreamstime.com

    A newly enacted Palmdale city ordinance banning the sale of flavored e-cigarette products has vaping advocates fighting back, according to court papers.

    The suit, filed by the California Smoke & Vape Association and tobacco retailer Cigs Plus against the city, alleges the law is “overbroad” and will “destroy Palmdale’s nicotine vapor product industry, and damage the livelihoods of the workers that it employs,” according to a story on pe.com.

    The Los Angeles federal court complaint, filed Sunday, also contends that the ordinance “will likely precipitate a public health crisis, as vapor products users turn either to combustible cigarettes or to black market sources to obtain vapor tobacco products.”

    A message seeking comment from Palmdale’s city attorney was not immediately answered, according to the story.

    The law intends to curb tobacco use among youth, and also prohibits the sale of tobacco- and menthol-flavored vaping products, which have “little to no effect on the recent increase of youth tobacco consumption,” the lawsuit alleges.

    The ban, approved by the City Council six months ago, is aimed at the fruit- and candy-flavored products popular among high school-aged youth.

    The vape association is comprised of wholesalers, manufacturers of nicotine-containing flavored e-liquids, and brick-and-mortar retailers. The suit alleges that Cigs Plus and its employees “now face financial ruin as a result of the ordinance.”

    The complaint seeks a court order permanently halting enforcement of the law, and reimbursement of legal fees.