Category: Business

VPR Brands Enforcing its ‘Auto Draw’ Patent
VPR Brands has started to identify and notify over 50 vapor industry companies that are using its “Auto Draw Technology” that VPR intends to enforce its patent. These companies were prioritized, based on sales volume and popularity, according to a press release.
Credit: VPR
VPR recently filed litigation against three of the companies: Jupiter Research, Cool Clouds Distribution and XL Vape. Additional lawsuits will continue to be filed as necessary to protect the company’s intellectual property (IP) rights, according to the release.
“Having personally been in the vape industry since its infancy for more than 10 years and witnessing the evolution of ecig and vapor technology, it is befitting that our company owns this US utility patent for what has grown to be a multibillion-dollar market,” said Kevin Frija, CEO of VPR Brands. “The inner construction of an e-cigarette is quite simple and fairly standard, and it is obvious as to what our auto draw technology patent covers, and potential infringement is rather clear when you see it.”
The company owns IP for one of the original patents filed for e-cigarette technology, dating back to 2009. It includes “independent claims covering electronic cigarette products containing an electric airflow sensor, including a sensor comprised of a diaphragm microphone. The sensor turns the battery on and off, and covers auto-draw, button-less e-cigarettes, cigalikes, pod devices and vaporizers using an airflow sensor. The technology is covered under electronic cigarette utility patent US 8205622,” the release states.
“The surge of the vaping category for nicotine, cannabis and CBD in the last few years has reached billions of dollars in sales. That has created opportunities for our patented auto-draw technology, which we believe is now preferred by many, if not most consumers,” said Frija. “Infringement can be avoided by simply adding a button to the battery however the preferred option by consumers to simulate smoking is our button-less auto draw technology and we believe this is an opportune time to consider licensing, enforcement or potentially a sale of our intellectual property to one of the larger players in the space. Our Patent could be a huge windfall for the company.”
The company may also seek a buyer for this patent in the future. “In recent years, our patented technology has surged back into popularity making our patent potentially very valuable,” ” said Dan Hoff COO of VPR. “I am happy to see our company and legal team actively litigating to enforce our intellectual property.”
February 18, 2021
Juul Labs to Exit Irish Market After Just 2 Years
Less than two years ago, Juul Labs entered the Irish vaping market with great enthusiasm. The company now plans to withdraw from the country at the end of this year, according to a story in the Irish Independent.
Credit: Juul Labs
Juul Labs told workers in September that the vaping giant planned to exit some European and Asia-Pacific markets and cutting more of its remaining 2,200 employees.
“Although much has been achieved in a short space of time, at a global level the company has had to make some difficult decisions about how best to serve its mission,” the company told suppliers in Ireland in recent weeks, according to the story.
“As part of this process the company has made the decision to focus its investment on core markets in order to best position itself for the long term, therefore unfortunately have informed us of their intention to exit the Irish market,” it added in a memo seen by the Irish Independent.
“Juul Ireland will be ceasing operations at the end of this 2020 calendar year,” it said.
The company launched in Ireland initially selling its products in 160 Circle-K forecourts and 50 Hale Vaping stores.
November 23, 2020
Juul Labs Shutters South Carolina Facility
Credit: Juul Labs
Juul Labs has shuttered its assembly plant in Lexington County, South Carolina, USA, amid a deteriorating business environment and pushback from local politicians.
“There has been rapid change in the landscape of the vapor category, and these operations are no longer viable,” the company said in a statement to The Post and Courier on Wednesday. “Earlier this summer, we unfortunately had to begin reductions to our manufacturing team.”
In May 2019, Juul announced the new assembly and packaging plant in Lexington County, boosting South Carolina’s economy by about $125 million and creating 500 jobs.
Juul has since suffered a backlash over its marketing practices and heightened restrictions on the vapor business, including flavor bans in many jurisdictions. It has laid off a substantial share of its workforce, discontinued certain products and exited several international markets.
November 19, 2020
Altria Converts Non-Vote Juul Labs Shares to Voting Shares

Credit: Juul Labs
Altria Group has announced that it has elected to convert its non-voting shares in Juul Labs to voting shares, pursuant to its December 2018 investment in the e-cigarette manufacturer.
“Altria does not currently intend to exercise its additional governance rights obtained upon conversion, including the right to elect directors to Juul’s board, or to vote its Juul shares other than as a passive investor, pending the outcome of the U.S. Federal Trade Commission (FTC) litigation,” Altria stated in a press release.
In April 2020, the FTC filed an administrative complaint challenging Altria’s minority investment in JUUL. Altria believes it has a strong defense and intends to vigorously defend its investment.
“As previously disclosed, Altria expects to account for its investment in JUUL under the fair value option. Under this option, Altria’s consolidated statement of earnings will include any cash dividends received from its investment in Juul as well as any changes in the fair value of the investment, which will be calculated quarterly,” the release states. “Altria intends to treat quarterly changes in the fair value of the investment as a special item and exclude those changes from its adjusted diluted earnings per share.”
In December 2018, Altria made a minority investment in Juul Labs. In exchange for the investment, Altria received a 35 percent economic interest in Juul Labs through non-voting shares, with their conversion to voting shares contingent on antitrust clearance (as that term is defined in the Altria/Juul purchase agreement). Under revised agreement terms announced in January 2020, Altria can designate two representatives to Juul’s board of directors.
November 12, 2020
Dosist Gets $15 Million Strategic Investment From TPB

Credit: Dosist
A $15 million strategic investment in leading global cannabinoid company Dosist was announced today by Turning Point Brands (TPB). The manufacturer, marketer and distributor of branded consumer products said the agreement includes an exclusive co-development and distribution agreement of a new national CBD brand, created in partnership with Dosist’s THC-free business unit.
Additionally, TPB has an option to invest another $15 million at predetermined terms within the next 12 months.
“The cannabis market is exploding and now is the opportune time to invest in the space and significantly expand our addressable market. With its leadership in results-oriented plant-based formulas and dose control technology, global recognition, consumer trust and scalability, Dosist was the clear choice to be our new partner in this critical growth market,” said Larry Wexler, president and CEO of TPB. “We couldn’t be more pleased to enter into this agreement with Dosist, to not only help fuel its exciting new business and co-create a completely new CBD brand for our retail partners, but also to leverage their expertise as a marketing powerhouse to help build the future of both our companies.
Gunner Winston, CEO of Dosist, a pre-eminent and globally recognized cannabis brand, said his team is extremely proud to partner with TPB on its next phase of growth and distribution. “Turning Point’s leadership team has demonstrated remarkable foresight and vision about the future and opportunity for federally legal cannabinoid products,” said Winston. “The synergy between our brands around this scope and mission is incredible and we are excited by what we will achieve together with this partnership.”
October 27, 2020
Juul Labs to Exit Germany

Photo: Juul Labs
Juul Labs will withdraw from Germany at the end of the year, reports W&V, citing a company spokesman in Hamburg.
The company said it needed to set priorities in to be successful in the long term. “In this way one can invest in research and development and future products in core markets,” it stated.
German consumers will be able to purchase Juul products until stocks run out.
Following a wave of layoffs, Juul’s German subsidiary had only about a dozen employees left, which have now been terminated, as well.
Juul had already exited Austria this summer and plans to leave Switzerland soon.
The company, which enjoyed great success in the United States until a regulatory backlash, has found it challenging to crack the European market due to EU limits on nicotine.
Juul products sold in the EU contain significantly lower doses of nicotine than those on the U.S. market, making it difficult for them to compete against combustible cigarettes in Europe.
Recently, Juul was also forced to temporarily halt shipments in Germany because its packages were missing a mandatory recycling symbol.
October 19, 2020
Pyxus Appoints New Board Members

Pyxus International has appointed Robert George, Carl Hausmann, Cynthia Moehring and Richard Topping to its board of directors effective Oct. 12, 2020. These individuals join previously announced board members Holly Kim, Patrick Fallonand Pieter Sikkel.
“The addition of the new members to Pyxus’ board of directors is a key milestone in its transformation strategy,” said Sikkel, who also serves as president and CEO of Pyxus, in a statement. “We believe this mix of directors brings proven financial and operational track records and diverse perspectives that will contribute to Pyxus’ future success, and we look forward to working with this group of proven leaders to accelerate the company’s growth.”
George brings extensive financial and operational experience in public, private and private equity-backed diversified industrial businesses. Most recently, he served as executive vice president, chief financial officer and corporate development for Esterline Technologies. Prior to joining Esterline, George held various leadership positions with Zurn Industries and Elgin Electronics. He is a member of the board of directors of Advanced Integration Technology.
Hausmann brings more than 35 years of experience in the agribusiness and food industries. He retired in June 2012 as managing director of global government and corporate affairs of Bunge Limited, having spent a decade serving in executive roles with Bunge affiliates in North America and Europe. Prior to joining Bunge, Hausmann served as chair and CEO of Cereol and held various leadership positions with Continental Grain Co. in Europe, South America, Africa and the United States. Following his retirement from Bunge, Hausmann served as a member of the board of directors of Pyxus International’s predecessor, Alliance One International, from June 2013 to August 2018.
Moehring is the founder and executive chair of the Business Integrity Leadership Initiative at the University of Arkansas Sam M. Walton College of Business. She brings more than 25 years of experience as a strategic senior executive, including 20 years at Walmart where she served as senior vice president, U.S. chief ethics and compliance officer and senior vice president, global chief ethics officer, among other leadership positions. She has broad experience in many areas, including enterprise risk management, effective global governance practices, mergers and acquisitions, IPOs, diversity and inclusion and sustainability.
Topping has four decades of experience in the tobacco industry. He has held a variety of global leadership positions throughout the supply chain, working with both tobacco leaf merchants and cigarette manufacturers. He most recently worked with Japan Tobacco International and its predecessor companies and served as vice president of global leaf sourcing prior to retiring in June 2018. Topping has wide-ranging global expertise, from both the merchant and cigarette manufacturer perspective, in leaf sourcing and procurement strategies, logistics, operations and sales throughout North and South America, Europe, Asia and Africa.
October 14, 2020
JTI Extends Vapor Tech Partnership with Sauber

Logic and Ploom parent, JTI (Japan Tobacco International), has extended a technology partnership agreement with Sauber Engineering AG (SEN), a technology and prototype development company and part of the Sauber Group.
Through this partnership, both companies will continue to collaborate on the development of precision engineering projects aimed at increasing the performance of the next generation of JT Group products, according to a press release.
The two companies are currently working on innovative solutions to enhance the user experience of JTI’s vaping products, developing innovative product platforms and new functionalities which respond to the changing demands of consumers, to offer them even broader choice, according to the release.
JTI has been in the reduced-risk products category since 2011 and is currently present in 28 countries with its e-cigarette brand, Logic and heated tobacco brand, Ploom.
September 3, 2020
Logic Vapor Maker: Japan Tobacco to Move Headquarters

Photo: Taco Tuinstra
Japan Tobacco’s new headquarters
Japan Tobacco (JT) will relocate its headquarters to a new location in Tokyo on Oct. 5.
The new address is: Kamiyacho Trust Tower, 24-6, Toranomon 4-chome, Minato-ku, Tokyo.
JT will lease the 26th to 30th floors of the building and occupy 19,253.06 square meters of office space.
The company has approximately 62,000 employees in more than 130 countries.
July 31, 2020
Crosthwaite to Serve as Board Chairman for Juul Labs

Steveheap | Dreamstime.com
Teresa Sebastian, an executive with financial and compliance expertise, will join the Juul Labs board. Sebastian is CEO of The Dominion Asset Group, an early-stage investment group focused on revitalizing urban areas, according to a story on Bloomberg.com.
Sebastian will serve as an independent director and head up the vapor company’s audit committee, according to Juul Labs CEO K.C. Crosthwaite, according to Bloomberg. Sebastian is the first Black member of the company’s eight-person board. Juul added former Canadian Health Minister Rona Ambrose as an independent director in May, making her its first female board member, according to the report.
Crosthwaite also said he will become chairman at the board’s request, succeeding co-founder Adam Bowen, who will head up the product committee. Bowen became the company’s first chairman when Crosthwaite joined the company last fall, according to Bloomberg.
“We are all aware that our company is entering a critical period,” Crosthwaite said. “With the support and oversight of our increasingly robust board, we will deliver our first PMTA submissions to the FDA, while continuing the work of combating underage vaping and transitioning adult smokers all around the world from combustible cigarettes.”
Crosthwaite said in the email that Sebastian will help Juul ensure it has financial discipline, according to Bloomberg. She serves on two other boards and teaches courses on corporate compliance, legal risk management and accounting at the University of Michigan and Vanderbilt University.
July 29, 2020