Vapor Voice

Category: Business

  • Alibaba Station to End All Vaping Product Sales May 1

    Alibaba Station to End All Vaping Product Sales May 1

    Credit: Ascannio

    Alibaba International Station announced that, beginning May 1, it will no longer allow the sale of vaping products. The cross-border trade B2B e-commerce platform’s ban will include cartridges, e-liquids, hardware and all other vaping related products.

    In March this year, the State Tobacco Monopoly Administration of China announced the promulgation of the Measures for the Administration of Electronic Cigarettes, which also comes into force on May 1.

    After the document was issued, many e-cigarette brands said that they will actively implement the regulatory requirements and stop the production of e-cigarettes with fruit flavors in the domestic market, according to dayday News. Therefore, under the new regulations, the prices of e-cigarettes have been rising. Many brands raised the price of their e-cigarettes with various fruit and soda flavors, with prices increasing between 20 yuan ($3.14) to 30 yuan ($4.71).

    According to a report released by iiMedia Research, the retail sales of the global new tobacco market reached 360.5 billion yuan in 2021, an overall increase of 25.6 percent, while China’s domestic sales increased by 73 percent. In addition, according to the Blue Book of the Electronic Cigarette Industry in 2021, in terms of export, the total output value of electronic cigarettes exports reached 138.3 billion yuan, and there are more than 1,500 e-cigarette manufacturers in China.

  • E-Cig Market Gap Between Juul, Vuse Continues to Close

    E-Cig Market Gap Between Juul, Vuse Continues to Close

    The market-share gap between the top-selling U.S. electronic cigarettes has shrunk over the past month with Juul holding about a 4.2-percentage point gap over R.J. Reynolds Vapor Co.’s Vuse.

    The latest Nielsen analysis of convenience store data, covering the four-week period ending Feb. 12, determined Juul was at 37.9percent market share and Vuse at 33.7 percent, according to Winston-Salem Journal.

    There has been a 4- to 4.8-percentage point gap between the two e-cigarettes for the last six Nielsen reports.

    NJoy was at 3.2 percent, up from 3.1 percent in the previous report, while Fontem Ventures’ blu eCigs rose from 2.3 percent to 2.4 percent.

    E-cigarette sales overall have slumped since February 2020, when the Food and Drug Administration implemented its latest round of heightened regulations on the products.

    Those restrictions foremost required manufacturers of cartridge-based e-cigarettes, such as Juul Labs Inc., Reynolds Vapor, NJoy and Fontem, to stop making, distributing and selling “unauthorized flavorings” in February 2021, or risk enforcement actions.

    Goldman Sachs analyst Bonnie Herzog said another factor in the slump is “the impact of e-cigarette market denial orders by the FDA as it continues to work through premarket tobacco applications.”

  • Vapor, Oral Products Continue to Boost BAT Sales

    Vapor, Oral Products Continue to Boost BAT Sales

    A seven percent rise in full-year adjusted revenue to 25.7 billion pounds ($34.8 billion) was reported by BAT Friday, helped by sales of e-cigarettes and oral nicotine.

    The world’s second-largest tobacco company also announced a dividend increase of 1.0 percent to 217.8 pence and a 2 billion pound share repurchase program for 2022, according to Reuters.

    It posted a 51 percent rise to 2.05 billion pounds in adjusted sales of its “new categories” product line which includes e-cigarettes, heated tobacco and oral nicotine. Though the division has yet to turn a profit, BAT said it was on track to report revenue of 5 billion pounds and profitability by 2025.

    “Continued growth in new categories is a cornerstone of BAT’s long-term plans for success,” Third Bridge analyst Ross Hindle said. “With over 1.1 billion smokers still using combustibles, the opportunity to convert consumers towards New Categories is highly attractive.”

    The company said 4.8 million more consumers than last year used non-combustible products such as Vuse e-cigarettes, glo heated tobacco and Velo oral nicotine.

  • UKVIA Anticipates Busy Year for the Vaping Sector

    UKVIA Anticipates Busy Year for the Vaping Sector

    The U.K. Vaping Industry Association (UKVIA) anticipates a busy year for the sector, the industry group noted at the publication of its 2021 annual report.  

    Among other activities, the association looks forward to launching its first Economic Impact Report, which will be used to highlight the vaping industry’s significant contribution to the British economy and support engagement with policy makers and the media.

    The UKVIA also plans to roll out of a levelling-up campaign designed to achieve recognition for the important role that vaping plays in reducing health inequalities across the U.K.

    In addition, the group intends to build on the launch this year of the UKVIA’s healthcare campaign which has included the development of a dedicated online advice hub for healthcare professionals and patients with smoking conditions.

    This year will also witness the conclusion of the review of the U.K. Tobacco & Related Products Regulations, which will shape the future of the industry for years to come, according to the UKVIA.

    Coinciding with the UKVIA’s annual vaping industry forum, planned for June 2022, the group plans a new awards event to recognize the high standards within the industry.

     

  • Phillips & King Rebrands Itself, Reveals E-Commerce Launch

    Phillips & King Rebrands Itself, Reveals E-Commerce Launch

    Phillips & King International has announced its new brand identity and a forthcoming new wholesale e-commerce platform. Part of the rebranding effort includes a contemporary refinement of the company’s “shield and knight” badge. The new Phillips & King logo “signifies its mission to modernize the business, while paying homage to the equity earned over their 116-year heritage,” according to a press release.

    The distribution company was founded in 1906 and has a long, successful history serving independent and small chain convenience, tobacco, and liquor retailers across the United States. The announcement details the company’s move towards a complete digital transformation of its business to “better serve the evolving needs of its retail customers and brand partners.” Throughout 2022, the company will be launching a host of enhancements to its business, including a the web platform expected to launch in early Q2.

    The new platform is expected to make it easier for stores to discover and stock the products that consumers struggle to find elsewhere on the market. Phillips & King will also be expanding its product and category assortment to give emerging brands the ability to reach more buyers— and give stores access to new products coming to market, according to the release.

    “The future of B2B wholesale commerce is both digital and highly-personalized,” says Jason Carignan, president of Phillips & King. “Our new web platform will enable us to more easily connect buyers and sellers across the industry and offer a more expansive array of products and categories- all while improving the personal connection our sales teams have with customers. We believe that retailers should be able to manage their entire business with ease from their mobile device and have access to business intelligence— and expert guidance— that helps drive inventory-buying decisions. This new platform is the first step in our quest to helping stores thrive in the new retail reality.”

    Phillips & King, a subsidiary of Kretek International.

  • Poda and Landewyck Explore Partnership

    Poda and Landewyck Explore Partnership

    Photo: DragonImages

    Poda Holdings and Landewyck Tobacco are exploring the potential of a partnership.

    The companies intend to enter into a cooperation agreement based on both parties’ intellectual property, branding, manufacturing facilities and distribution channels to develop one or more products for commercialization.

    Before further developing the cooperation project, the parties intend to assess the relevance of their cooperation by implementing a trial period for blend development, which could be used for the potential cooperation products.

    By bringing together Landewyck’s tobacco manufacturing and distribution expertise and Poda’s patented heat-not-burn technology, the aim is to develop a consumer-centric product offering both convenience and optimal flavor in the reduced-risk sphere.

    “We’re very excited to further strengthen our collaboration with Ryan and the Poda team,” said Georges Krombach, general manager of export and new-generation products for Landewyck, in a statement. “The technology and intellectual property behind Poda are disruptive and deliver a strong customer experience. By adding our tobacco and our European regulatory and distribution expertise, we expect to have great success in the European marketplace.

    “We manufacture tobacco and cigarettes at our own facilities exclusively in Western Europe and attach great importance to maintaining the highest manufacturing, working and product standards that are socially acceptable to our consumers, partners and importers worldwide. Our master tobacco blenders travel to the farthest reaches of the globe to hand select the best leaves, hence ensuring the unique flavor of our tobacco products—and all so our customers can enjoy the ultimate in tobacco pleasure.

    “From product and manufacturing standards to employees and retailers, we always ensure that our business decisions and the products we supply are in keeping with our family spirit and upholding our tradition of delivering 100 percent quality, flavor and customer satisfaction.”

    “This marks another milestone in Poda’s commercialization efforts in Europe and abroad,” said Ryan Selby, Poda’s CEO. “Landewyck has been working in the tobacco space for over 170 years and brings a tremendous amount of manufacturing and distribution experience and expertise. We intend to get moving immediately on the blend development trial and hope to move quickly into large-scale commercialization of the cooperation products.”

  • ReCreation Marketing now Turning Point Brands Canada

    ReCreation Marketing now Turning Point Brands Canada

    ReCreation Marketing, a Canadian distribution company, has rebranded itself as Turning Point Brands Canada (TPB Canada). The name change will go into effect immediately and follows a transaction completed on July 30, 2021 that resulted in Turning Point Brands increasing its equity stake in ReCreation Marketing to a majority position,” according to a press release.

    Credit: Turning Point Brands

    “ReCreation Marketing changing its name to Turning Point Brands Canada reflects our commitment to our shared values with TPB and to expanding the exposure and reach of iconic core brands, such as Zig-Zag, in Canada,” said Mikail Fancy, Chief Operating Officer of TPB Canada. “TPB Canada is laser-focused on creating value directly with, and for, our partners, by offering a portfolio of recognized, differentiated, consumer-relevant brands and products.”

    Turning Point Brands, Inc. (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients. Turning Point Brands Canada continues to focus its resources on being a leader in the cannabis accessory category in Canada by fostering long-term, growth-oriented partnerships with manufacturers and retailers.

    “The rebrand of ReCreation Marketing to TPB Canada is a testament to our confidence in the ReCreation management team and is a natural extension of our infrastructure and portfolio development that puts consumers and their evolving needs at the center of our strategy,” added Larry Wexler, CEO of TPB. “This change further demonstrates our commitment to positioning TPB as a leader in branded consumer products.”

  • Vapor Companies Vying for U.K. Medical Licenses

    Vapor Companies Vying for U.K. Medical Licenses

    Photo: makistock

    Vapor companies are vying to get their product prescribed by the U.K. National Health Service after the Medicines and Healthcare products Regulatory Agency last month encouraged companies to apply for a medical license, reports The Financial Times.

    Companies preparing applications include U.S.-based NJOY, DSL Group, which owns Nottingham-based Multivape, Yatzz of Ireland and Leeds-based Superdragon, whose director David Xiu described the potential market as “much more than a multimillion-pound” opportunity.

    The e-cigarette market is worth more than £2 billion ($2.66 billion) in the U.K., according to Euromonitor, much more than in other European countries.

    As of yet, none of the leading tobacco companies have launched medicinal-use applications for the vapor brands.

    Imperial Brands, the U.K. owner of Blu e-cigarettes, said it was “carefully studying the new guidance.” Japan Tobacco International said it had “not made any decisions regarding licenses” for its Logic brand of vapes. Juul Labs said it had “nothing to announce at this time.”

    British American Tobacco, which owns Vuse, declined to comment.

    BAT-backed nicotine inhaler Voke received U.K. medical approval in 2014, but was scrapped after financing and manufacturing difficulties.

    The medical device will be locked down to a significant degree, with changes only possible infrequently and after jumping through a lot of hoops.

    Erik Bloomquist

    Tobacco analyst Erik Bloomquist said companies may prefer commercial routes due to the length of the approval process. Licensing could take several years, during which time products can become out of date.

    “The medical device will be locked down to a significant degree, with changes only possible infrequently and after jumping through a lot of hoops,” he said.

    Compliance costs could also be prohibitive for smaller groups. Chris Allen, chief scientific officer at consultancy Broughton, said clinical trials, marketing and compliance costs could amount to as much as £3 million to £5 million for a single product. This means that “only a handful of companies would look at this path,” he said in a statement.

  • PMI Applauds U.K. Plan to Simplify E-Cig Licensing

    PMI Applauds U.K. Plan to Simplify E-Cig Licensing

    Photo: DW labs Incorporated

    Philip Morris International announced its support of the U.K. government’s plan to simplify the pathway to license electronic cigarettes and other inhaled nicotine-containing products as medicines in England.

    “The U.K. already has one of Europe’s lowest smoking rates, supported by a high rate of smokers who have switched to better alternatives,” the company wrote in a press note. “This proposal makes the U.K. the first country in the world to encourage the medical licensing of e-cigarettes via prescription as a route to further lower smoking rates, particularly among low-income smokers.”

    “The U.K. is a global leader in medicine, science and public health,” said PMI’s senior vice president, of external affairs, Gregoire Verdeaux. “Expert scientific reviews in the U.K. and U.S. are clear that smoke-free alternatives—such as e-cigarettes—offer adults who would otherwise continue to smoke cigarettes a better alternative. We welcome the U.K. government’s continued recognition that regulated e-cigarettes and other inhaled nicotine-containing products, while not risk-free, are less harmful than smoking and can significantly benefit public health.”

    PMI said regulators can decisively accelerate the decline of smoking through risk-proportionate regulations for all nicotine-containing consumer products. A growing number of countries—including the U.S., New Zealand, Italy, Portugal, Greece and Bulgaria—have recognized this approach and implemented differentiated regulation for noncombustible alternatives, according to the company.

  • Altria and Juul Support New Age-Verification System

    Altria and Juul Support New Age-Verification System

    Altria Group Distribution Co. and Juul Labs have announced their support of TruAge, a new digital solution that enhances current age-verification systems and protects user privacy.

    Developed by the National Association of Convenience Stores and Conexxus, TruAge makes it easier and more accurate to verify a customer’s age when purchasing age-restricted products. At the same time, the system makes identity theft difficult. One-time-use tokens are used to share only the most important elements to confirm the purchaser is of legal age, which also protects the user’s privacy.

    TruAge is free to retailers, consumers and POS providers, and its relevant intellectual property will be placed in the public domain—removing barriers to adoption.

    “We are excited to join this important initiative because TruAge deepens our trade partners’ support of underage prevention and helps establish retail as the most trusted place to responsibly sell tobacco products,” said Scott Myers, president and CEO of Altria Group Distribution Co., in a statement.

    “Over the past few years, we have worked closely with our retailer partners across the United States to implement enhanced access controls for the sale of Juul products, automatically requiring electronic ID scanning to verify the purchaser is at least 21 years of age and limiting the amount of product sold to reduce social sourcing,” said Parker Kasmer, vice president of regulatory engagement for Juul Labs.

    “We are eager to support TruAge and the extension of technologically based age-verification solutions across all vapor and other age-restricted products to combat underage use and support a more responsible marketplace.”

    TruAge is also supported by more than 130 retail companies that represent 22,000-plus convenience store locations in the United States, plus four industry point-of-sale providers.