Category: News This Week

  • Vapor Corp. acquires three retail stores in Georgia, USA

    Vapor Corp., a leading U.S.-based distributor and retailer of vaporizers, e-liquids, e-cigarettes and e-hookahs, has acquired three established retail vape stores in Atlanta, Georgia, USA.

    This three-store chain marks the company’s first retail acquisition outside of Florida and brings the total number of store Vapor Corp. owns to 18. Terms of the transaction were not disclosed.

    These acquisition of the Atlanta stores—coupled with the company’s recently announced acquisitions of retail vape stores in Gainesville, Florida, and Fort Myers, Florida, are central to Vapor Corp.’s aggressive expansion efforts to develop a national footprint throughout the U.S.

    “Following the completion of our capital raise and successful acquisition of several thriving consumer retail operations in Florida, Vapor Corp. has now expanded its footprint into Georgia, a testament to the early success of our national retail expansion efforts,” said Vapor Corp CEO Jeff Holman. “As the [Southeastern United States] has been an area of focus for our growth, it is only natural for Vapor Corp. to expand into Georgia. Not only is it in our backyard, but we have also identified numerous acquisition candidates that satisfy our strict investment criteria.”

    Currently the only pure-play company in the vapor industry that is listed on a major stock exchange, Vapor Corp. plans to increase the number of company-owned retail stores to more than 30 locations by the end of the year. The respective 1,200-square-foot Atlanta stores opened in February 2014, April 2014 and September 2015.

    “These stores have quickly demonstrated their ability to build strong local reputations and gain significant traction with a growing vaping community,” said Holman. “Vapor Corp. expects an immediate ROI from this acquisition as we continue to establish ourselves as the go-to source for the latest, most innovative vaping products available, for both experienced and novice vaping fans across the country. We look forward to advancing our national retail roll-out plan through the end of the year and into 2016.”

  • UAE may ease ban on e-cigarette sales

    The United Arab Emirates (UAE) is introducing regulations that may ease the ban on the sale of e-cigarettes within the country.

    Authorities from Emirates Authority for Standardization and Metrology (Esma) in January sent a draft technical regulation to the World Trade Organization (WTO), which notified them of the UAE’s intention to regulate the sale of e-cigarettes. The document sent to the WTO states that the objective of the regulation is to protect human health by ensuring quality products are available in the market.

    The sale of e-cigarettes is currently banned in the UAE, which follows the cautious position adopted by the World Health Organization (WHO), according to a story in the Khaleej Times. Regulation of the sale of e-cigarettes is believed to be based on recent recommendations from the WHO that examine the emerging evidence on the health impacts of electronic nicotine delivery systems (ENDS), of which electronic cigarettes are the most common prototype, according to the Times.

    The health ministry of the UAE has banned the sale of e-cigarettes because experts have not yet determined the long-term effects of such devices on users.

    “E-cigarettes are considered as harmful as tobacco and not as a smoking cessation tool,” a source from the ministry was quoted as saying in the Times story. “Currently conflicting studies are going on this matter which cannot be used as justifications to allow products into the country,” added the source.

    Despite the ban on e-cigarette sales, the devices have been illegally imported and sold across throughout the UAE.

  • Cabrera named president and CEO of SFATA

    Cynthia Cabrera
    Cynthia Cabrera

    The Smoke-Free Alternatives Trade Association (SFATA) has appointed Cynthia Cabrera, SFATA’s executive director, to its board of directors and named her as its next president and CEO.

    Cabrera succeeds Phil Daman, who has served as SFATA’s president and CEO since 2013, and has worked with SFATA since 2012. Daman, along with Cabrera, has been instrumental in helping the association grow from seven member companies to more than 500 members in less than three years. Cabrera will remain as SFATA’s executive director.

    “I am extremely pleased that Cynthia will be working with SFATA in this new expanded role to make SFATA even greater and stronger,” said Daman. “There is no one in this industry that has a higher level of professionalism, passion, commitment, knowledge and ability to lead SFATA.”

    Daman, who manages the law firm of Daman & Associates, and advises stakeholders on transactional, litigation and regulatory matters, is stepping away from his role at SFATA to focus on his clients’ increasing legal needs. Daman will remain on SFATA’s Board until Nov. 9 to assist Cabrera with the transition and SFATA’s upcoming elections, which are scheduled for that same day.

    “It’s been an honor to work with Phil these past few years. He is an astute attorney and sharp advocate who understands the issues the vapor industry faces and cares deeply about using vapor technology to help people change the world for the better,” said Cabrera. “SFATA appreciates Phil’s commitment and dedication and hopes to leverage his knowledge and expertise in future as we continue to engage with government and industry to help shape evolving legislation at the federal and local levels.”

  • Greek cardiologist supports e-cig use

    Dr. Konstantinos Farsalinos, a cardiologist from Greece, has argued that e-cigarettes should be made available to smokers who want to stop using combustible cigarettes but don’t want to give up nicotine, according to Mayalsia’sThe Star.

    Farsalinos, who is a cardiologist and researcher at the University of Patras’ Onassis Cardiac Surgery Center, has indicated that e-cigarettes play an important role in tobacco harm reduction. “Most smokers do not want to go to the doctor,” he said in a media briefing initiated by the Malaysian Organisation of Vape Entity.

    Farsalinos also quoted studies that said current nicotine-replacement therapies had a success rate of less than 6 percent, while oral medications had a success rate below 20 percent. He argued that e-cigarette use was a more acceptable method for smokers to reduce smoking, saying e-cigarettes are 95 percent less harmful than cigarettes.

    Malaysia’s health minister, Datuk Seri Dr. S. Subramaniam, on Aug. 13 announced that the country’s ministry of health was in discussions with various agencies and parties about the effects different methods of smoking have on an individual’s health. He urged the public to stop using e-cigarettes until comprehensive findings on the risks involved in vaping were released.

    Of the 400 Malaysian smokers aged 18 and above surveyed online by Ipsos from June 3 to June 17, 82 percent believed that “e-cigarettes represent a positive alternative to today’s [combustible] cigarettes,” and 75 percent would “consider switching to e-cigarettes if they were legal, met quality and safety standards, and were conveniently available like regular tobacco products,” according to John Boley, co-founder of the consumer advocacy group Factasia.org.

  • Sixteen percent of Finns smoke, one percent vape

    About 16 percent of Finns aged 15-64 smoke daily, a figure that comprises 17 percent men and 14 percent women, according to an Esmerk story citing Finland’s National Institute of Health and Welfare.

    Eleven percent of 16-year-olds smoke.

    Less than one percent of the country’s working-age population vape electronic cigarettes daily, though seven percent of women aged 15-24 vape occasionally.

    Meanwhile, according to Customs department tax statistics, 4,317 million cigarettes and 117 million cigars were consumed in Finland last year.

    Cigarette consumption during 2014 was said to have been down from that of 2013, but the story did not say by how much.

    Four hundred and seventy million duty-free cigarettes were imported by private individuals during 2014.

  • RAI to consolidate Vuse manufacturing

    Reynolds American is consolidating the manufacturing operations for its Vuse digital vapor cigarette. Currently, production is split between R.J. Reynolds Tobacco Co.’s factory in Tobaccoville, North Carolina, USA, and a contractor in Kansas.

    Going forward, all production of Vuse will occur at Tobaccoville, pursuant to a services agreement between R.J. Reynolds Tobacco Co. and RJR Vapor Co.

    “Vuse is currently the top-selling electronic cigarette in the convenience store channel, and we are very pleased with its success to date,” said Susan M. Cameron, president and CEO of Reynolds American. “As the vapor category continues to develop, we need to make sure our manufacturing operations are efficient and cost-effective in meeting anticipated demand.”

    In May of last year, Reynolds American announced a multimillion dollar investment for higher-speed, more efficient e-cigarette manufacturing equipment at R.J. Reynolds Tobacco’s Tobaccoville manufacturing center. The new equipment is now online, enabling the company to consolidate Vuse manufacturing, reducing its manufacturing footprint and generating cost efficiencies.

    As a result of the consolidation, in the third quarter Reynolds expects to take asset impairment and exit charges of approximately $100 million on a pretax basis.

  • Vapor-product regulations sought in Malaysia

    A petition urging the government of Malaysia to regulate vapor products in the country has attracted 50,000 signatures, according to a Bernama story citing the Malaysian Organisation of Vape Entities (MOVE).

    MOVE’s president, Samsul Kamal Arriffin, said the group wanted the government to ensure that the manufacture, sale and distribution of the products were managed in a systematic, safe and structured manner because the group had received “a lot of feedback saying that vape is more detrimental to health compared to smoking”.

    “Generally vape consumers want the use of vape and the vapor to be regulated like tobacco,” he said. “This is because vaping is gaining in popularity in Malaysia and some people are willing to change their lifestyle by choosing vape as an alternative to smoking.”

    Umno (United Malays National Organisation – Malaysia’s largest political party) Youth vice-chief, Khairul Azman Harun, who was handed the petition, said Umno Youth was against a ban on vaping but wanted the government to regulate vape products because studies had shown that vaping could reduce nicotine addiction among heavy smokers by up to 80 percent.

    He said that electronic cigarette entrepreneurs, who first introduced the products in Malaysia in 2011, should adopt good manufacturing practice so that the products currently used by 400,000 consumers, would not be a health hazard.

  • Vaping-products tax insane ‘public health’ policy

    A US public health expert has described a decision by the District of Columbia to impose a 67 percent tax on all electronic cigarettes and vaping products as one of the most insane ‘public health’ policies he had ever heard of.

    ‘Taxing e-cigarettes at a whopping 67 percent rate is nothing more than a gift to Big Tobacco,’ Dr. Michael Siegel, who is a professor in the Department of Community Health Sciences, Boston University School of Public Health, said in a note posted on his tobacco analysis blog.

    ‘Undoubtedly, it will put many vaping shops out of business, resulting in significant numbers of ex-smokers returning to smoking and many smokers who would otherwise have quit using e-cigarettes not doing so,’ he said.

    ‘The policy protects cigarette profits at the expense of the public’s health.’

    Read the blog here.

  • R.J. Reynolds signs vapor technology term sheet with BAT

    R.J. Reynolds Tobacco Co. (RJR) has signed a technology-sharing term sheet with British American Tobacco (BAT) that provides a framework for collaboration and mutual cross-licensing of vapor product technologies through 2022.

    The term sheet is the first step in reaching a definitive agreement under which RJR and BAT will collaborate to develop next-generation vapor products. Specifics of the agreement are still being negotiated by the companies, who have a goal of reaching a definitive contract by the end of the year. The collaboration will include a process for joint research and development activities, as well as cooperation on regulatory, scientific and manufacturing issues related to vapor products.

    “This proposed technology-sharing agreement makes great business sense as we lead the transformation of the tobacco industry, allowing us to continue to deliver innovative, high-quality vapor products to adult tobacco consumers seeking smoke-free alternatives,” said Debra Crew, R.J. Reynolds’ president and chief commercial officer.

  • Concerns over accidental e-liquids exposure

    The UK National Health Service’s National Poisons Information Service (NPIS) has said in its annual report that urgent consideration needs to be given to the safe storage and packaging of electronic cigarettes and e-liquids, according to a story by the TMA based on the report.

    The NPIS said that during 2014-15 it had received 241 telephone enquiries concerning these products, up 18 percent on the 204 enquiries it had received during 2013-14

    Forty percent of the calls during 2014-15 had come from hospitals and 25 percent had concerned incidents involving children under five.

    Eighty five percent of the exposures had been accidental.

    Fourteen of the 241 enquiries had concerned intentional overdoses, while the remainder had included adverse reactions to intended use, recreational abuse and ‘therapeutic errors’.

    Ingestion had been the most common form of exposure, though nine of the 15 enquiries involving eyes had occurred when an e-liquid was mistaken for eye drops.

    Of all those exposed, 133 had shown no signs of toxicity, seven had suffered moderate toxicity, and one severe toxicity.

    The report said it was of concern that the majority of exposures had been accidental.

    Monitoring inquiries about exposures to electronic cigs and their refills was important given their increasing use, it said.

    Read more here.