Category: Events

  • InterTabac Postponed, Organizers Working on Alternative Format

    InterTabac Postponed, Organizers Working on Alternative Format

    Photo: Messe Dortmund

    The InterTabac and InterSupply trade fairs planned for Sept. 18-20, 2020, in Dortmund, Germany, will not be held in their customary formats this year due to the Covid-19 pandemic.

    The traditional versions of both fairs will be postponed to Sept 16-18, 2021

    The decision was taken by agreement between the organizer, Messe Dortmund and the partner associations representing the tobacco industry, tobacco product wholesalers and retailers.

    The parties involved have agreed to work on an alternative format to take place in autumn 2020 leveraging the strengths of the trade fair for tobacco products and smoking accessories and of the trade fair focusing on the manufacturing process for tobacco products, e-cigarettes, pipes and shisha tobaccos.

    “Even though there have been signs of relaxation in Germany in recent weeks regarding the Covid-19 pandemic, and local authorities have again made it possible to hold trade fairs with limited attendance while observing appropriate hygiene measures, we as organizers continue to pay particular attention to our responsibility to protect the health of everyone involved”, explained Sabine Loos, managing director of Westfalenhallen Unternehmensgruppe, the parent company of organizer Messe Dortmund.

    “As a result, working closely with our partner associations, we have decided to jointly develop a new concept for this autumn, and to present it in detail shortly.”

  • World Vape Day to be Celebrated on May 30

    World Vape Day to be Celebrated on May 30

    Yurenia85 | Dreamstime.com

    Millions of e-cigarette users, or vapers, across the globe are celebrating World Vape Day on May 30, 2020,  a day before World No Tobacco Day.

    World Vape Day aims to raise awareness on e-cigarettes or vapes and encourage smokers who are unable to quit on their own or with currently available smoking cessation tools to switch to safer nicotine products.

    “Safer nicotine products, such as e-cigarettes and heated tobacco products, are the most disruptive influence on smoking in decades.These are the innovations that have the potential to save millions of lives in the Asia Pacific region as well as globally,” said Nancy Loucas, executive director of the Coalition of Asia-Pacific Tobacco Harm Reduction Advocates, or CAPHRA, one of the lead organizers of World Vape Day 2020, according to an article in the Manilla Standard.

    “These products have disrupted the standard of harm reduction in tobacco by giving the power back to the smokers to choose the option that works for them and allows them to have agency over their own and their loved one’s health and wellbeing,” she said.
    The number of vapers globally has been increasing rapidly from about seven million in 2011 to 41 million in 2018, according to Euromonitor International. The market research group estimates that the number of adult vapers worldwide will reach almost 55 million by 2021.

    In its 2018 independent evidence review, Public Health England concluded that “e-cigarettes are around 95% safer than combustible cigarettes.”

    Published in March 2020, the agency’s latest report said “Despite reductions in smoking prevalence, smoking remains the biggest single cause of preventable death and disease and a leading cause of health inequalities. So, alternative nicotine delivery devices that are less harmful could play a crucial role in reducing this health burden.”

  • Organizer Optimistic Intertabac Will Proceed

    Organizer Optimistic Intertabac Will Proceed

    The Westfalenhallen group of companies is increasingly hopeful that, with appropriate measures in place, the Intertabac exhibition, scheduled for Sept. 18-20 in Dortmund, Germany, will take place. The event and trade fair industry worldwide has been affected by the coronavirus epidemic. 

    “Nevertheless, due to the latest signals from politics, we are a bit more positive about the organization of trade fairs in Dortmund, [Germany],” said Sabine Loos, managing director of the Westfalenhallen group of companies.

    The authorities are currently determining under what conditions trade fairs could take place after May 31. Discussions focus on hygiene measures and limiting the number of participants. Specifics are expected to be announced soon.

    “Afterwards, we will evaluate these measures and, on this basis, coordinate our further course of action—especially with regard to InterTabac and InterSupply,” said Loos. “We assume that voting on this should be completed in late May and early June.”

    Messe Dortmund is working to create concepts for holding trade fairs. At the beginning of the coronavirus pandemic, various measures were successfully introduced at the exhibition center in Dortmund, and an awareness campaign on various channels indicated the correct handling of the hygiene area. 

    With the upcoming loosening of Germany’s lockdown from June 2020, new conditions will be imposed on trade fair organizers. These will be incorporated into the overall concept of Messe Dortmund and included in the planning for InterTabac and InterSupply.

  • Tax Free World Association Cancels Duty-Free Conference

    Tax Free World Association Cancels Duty-Free Conference

    The Tax Free World Association (TFWA) has canceled the 2020 TFWA World Exhibition and Conference scheduled for Sept. 27 to Oct. 2 due to the impact of the coronavirus outbreak.

    The TFWA board and management committee took into account the continuing uncertainty surrounding the travel and health situation as well as the worldwide fall in industry activity.

    “By agreeing significant reductions to space rental fees, making changes to the format and working with our partners in Cannes to reduce the cost of taking part in the event, we did what we could to attempt to ensure the TFWA World Exhibition and Conference could take place,” said Alain Maingreaud, TFWA president.

    “Since making those changes, we have monitored the situation daily and been in constant contact with our members and partners. The way in which the situation has developed with the economic impact of the crisis becoming increasingly serious amid continuing uncertainty over restrictions on travel has forced us to review our plans.

    “The management committee was unanimous in its decision to cancel the 2020 edition and in its desire for the association’s events to play a central role in the industry’s recovery from 2021.

    “The cancellation of TFWA World Exhibition and Conference will have a significant impact on the association’s finances, but thanks to the sound management of our resources up to now, we have been able to build reserves to help us cope with difficult periods such as this.

    “We remain determined to do all we can to help our industry emerge from its most difficult period, keep our members and partners informed and help coordinate our industry’s response to the current crisis.”

  • Vuse to Sponsor U.S. Tour of The Fratellis

    Vuse to Sponsor U.S. Tour of The Fratellis

    The R.J. Reynolds Vapor Company (RJRVC) announce that the Vuse brand will be a headline sponsor for the U.S. portion of The Fratellis’ upcoming international concert tour. This Vuse sponsorship is part of a broader sponsorship deal between British American Tobacco (“BAT”), RJRVC’s ultimate parent Group, and The Fratellis. To celebrate this sponsorship, The Fratellis will offer an exclusive sneak peak of their new song, “Strangers in the Street,” via Vuse Vapor’s U.S. age-restricted Instagram channel.

    The Fratellis are a multi-platinum, multi-award-winning Scottish rock band from Glasgow, formed in 2005. The band consists of lead vocalist and guitarist Jon Fratelli, bassist and backing vocalist Barry Fratelli, and drummer and backing vocalist Mince Fratelli. The Fratellis have announced that their sixth studio album, titled Half Drunk Under a Full Moon, to be released on October 30, 2020, alongside a full UK and North American tour.

    “We’re pleased to be part of The Fratellis’ upcoming U.S. tour, and to bring exclusive music and inspirational experiences for adult nicotine consumers,” says Leila Meideros, U.S. Head of Vuse Vapor.

    To celebrate the announcement of this sponsorship, The Fratellis will release a new track, “Strangers in the Street,” featuring legendary U.S. soul singer P.P. Arnold. This new track will premiere on Vuse Vapor’s U.S. age-restricted Instagram channel on May 7. The Fratellis will also be releasing a video that will be available exclusively on Vuse Vapor’s U.S. Instagram channel through May 14.

    “This song is a unique passion project for us. We recorded separately due to the pandemic and edited together to share through Vuse’s Instagram,” says Jon Fratelli, “We’re glad we can still put out music despite the circumstances, and we’re thankful to Vuse for helping make it happen.”

    To provide support to the music community during these challenging times, Vuse Vapor is including a link for individuals to donate to MusiCares through the Spotify Covid-19 Relief Fund. The Fratellis will also be donating 100% of their share of the proceeds from sales to Covid-19 relief funds.

    “COVID-19 has left the music community devasted, leaving many musicians and creators without jobs and an uncertain future,” says Meideros “We are thrilled to support this effort with The Fratellis, and in addition, are proud to make a corporate donation to help the music community.”

    U.S. Tour dates will be announced later this year.

    NOTE: Vuse Vapor’s U.S. Instagram account (@vusevaporus) is restricted to age 21+ nicotine consumers.

  • Vype Debuts Week-Long Virtual Music Series

    Vype Debuts Week-Long Virtual Music Series

    Credit: Acantha Lang Music

    As a growing list of music gigs are being cancelled or postponed, musicians are still eager to connect with their fans. British American Tobacco’s (BAT) Vype brand has launched a week-long, live music series from musician’s homes.

    Each performance will feature intimate conversations with up-and-coming musicians about how they find inspiration at home along with a one of a kind live music shows, according to a Vype press note. Playing songs of resilience and hope, this free musical series is designed to inspire creative ways to connect while at home. The series will take place on Tuesday, Thursday and Friday and will be streamed on Vype_worldwide Instagram page.

    “We are committed to bringing inspiration to as many of our adult consumers as we can across the globe,” says Elly Criticou, Vapour Category Director, British American Tobacco. “We are excited to continue to offer unique experiences that encourage people to find different ways to stay in touch with each other.”

    The music series will kick-off this week with New Orleans-born Acantha Lang on Tuesday 31st March at 5pm GMT; followed by composer and pianist Okiem on Thursday April 2nd at 5pm GMT and finishing the week with singer Lil Rice on Friday April 3rd at 5pm GMT.  Performances will feature a range of musical genres including blues and soul, cinematic classical and country rock.

  • High Demand

    Patrick BashamPatrick Basham, founding director of the Democracy Institute, a politically independent think tank, said that when the Canadian government legalized medical marijuana in 2001 and legalized recreational use in 2018, the marijuana industry began to see a change in the types of businesses getting into the fast-growing segment. Speaking at TABEXPO, a vapor and tobacco trade show that was held in Amsterdam in November, Basham gave an overview of the marijuana market, detailing the entrance of major tobacco companies into the rapidly growing cannabis industry. Basham has been involved in the legal cannabis industry for more than 22 years.

    Major tobacco companies entered the cannabis industry starting in 2018; however, the mission began much earlier, according to Basham. “Big Tobacco first sought to join the marijuana business in the 1960s. The companies were driven then by the same shift in public attitudes that are now pushing legalization globally,” he said. “Cannabis laws are changing all over the world. In 2013, Uraguay legalized weed. Canada followed suit last year. In America, more than half the population thinks marijuana use should be legalized.”

    In December 2018, Altria dove into the cannabis market with a $2.4 billion investment in Cronos Group, a Canadian medical and recreational marijuana company. In July of this year, Imperial Brands made its biggest investment in the cannabis sector with a £75 million deal to take a stake in Canadian company Auxly Cannabis Group. The legal cannabis market in Canada is estimated to be worth $6 billion, according to Ernst & Young, and is forecast to increase to $11 billion by 2025 following regulation in October to legalize edible cannabis products as well as cannabis oils, lotions and vapor products.

    The tobacco industry possesses expertise in the production of materials and an agricultural supply chain, controlling costs and driving margins on the finished product, according to Basham. “Legal cannabis legislation will require substantial compliance procedures and efficiency, something that is the cornerstone of the current tobacco business,” he said. “Specific tobacco-related expertise, such as that related to track-and-trace, is likely also to be highly valuable in a cannabis context.”

    Basham said tobacco companies have astutely seized a golden opportunity to diversify their business and enrich its shareholders. “Tobacco is in a far, far better position today, in an institutional sense, to enter and to compete in the cannabis market than it would have been in the past,” said Basham. “Five years from now, I think it will even be better placed.”

  • Retail Experience

    Stavroula AnastasopoulouThe European e-cigarette market is estimated to be worth €3.8 billion, and 3.1 percent of adults smoke e-cigarettes. The specialized vape shops are the prominent distributor. These were the major facts shared by Stavroula Anastasopoulou, senior market analyst for ECigIntelligence, a data provider for the global e-cigarette industry.

    Speaking at TABEXPO, a vapor and tobacco trade show that was held in Amsterdam in November, Anastasopoulou gave an overview of the e-cigarette market and the future of the vapor sector, which has been impacted by strict regulation and the U.S. health warnings regarding vaping black market THC. About 70 percent of the EU market is e-liquids, according to Anastasopoulou.

    “This is due to price differences and frequency of use. The EU market is small compared to the combustible market, which was estimated to be worth more than €100 million in 2017,” she said. “E-cigarette market growth, however, has been relatively steady.”

    The EU vapor market is concentrated in five markets that make up much of the EU segment (an estimated 80 percent). The U.K., France, Italy, Germany and Poland all exhibit different growth patterns as well. “The U.K. takes up a third of the whole market (€1.2 billion) and is one of the fastest growing markets in the world,” according to Anastasopoulou.

    Italy looks more optimistic as online channels are opening and a large e-cigarette tax has been placed on hold. Anastasopoulou said she expects the negative vaping news coming from the U.S. to affect the overall EU market. However, she still estimates the EU e-cigarette market to be €5.1 billion in 2022, which is 30 percent higher than its current value, with an estimated 10 percent yearly growth rate.

    Specialized vape shops are the preferred distribution method in the U.K. with 50 percent of the market. “We believe that 30 percent of the market comes from traditional retail, and that segment has been growing over the past year,” says Anastasopoulou. “There are now more independent brands (not affiliated with a tobacco company) moving into this channel.”

    In Poland, online sales are officially banned, so that segment is very small. France and Italy have a similar split to the U.K. where vape shops hold 55 percent to 60 percent of the market, says Anastasopoulou. “Germany has a large online presence of about 50 percent while [brick-and-mortar] vape shops only hold 30 [percent] to 35 percent of the market. This is because the total number of vape shops is relatively lower than the other markets, but also the top online retailers are seeing more traffic than other EU countries.”

    In general, Anastasopoulou expects future traditional retail sales to increase due to the growing popularity of closed devices, and more brands are expected to enter the channel. “We also expect online channels to suffer from more strict regulations. The vape shop channel is uncertain due to negative publicity from the U.S. as well,” she says. “Shops in France and Belgium are saying that they are experiencing lower revenues due to the health issues in the U.S., and shops in the U.K. are reporting 25 percent less revenue over the last month due to negative publicity.”

  • Inside Perspective

    Maggie GowenThe vapor industry makes an economic impact of more than $24 billion in the U.S. The news media is now being more responsible in its reports surrounding lung disease caused by black market THC vapor products. Speaking at TABEXPO, a vapor and tobacco trade show that was held in Amsterdam in November, Maggie Gowen, the executive director of the Global Vaping Standards Association (GVSA), said the e-cigarette and vapor industry in the U.S. is larger than the country’s iron and steel industry and employs nearly as many people as the commercial fishing industry. The industry has produced over 166,000 jobs, and wages and benefits earned are about $8 billion.

    Gowen also updated attendees on the recent rash of lung disease caused by black market THC vapor products. “Over the last three months, the U.S. government health agencies have done a terrible job separating nicotine-based vaping products versus illegal black market THC vaping products. And as a result, they have conflated the two issues. The two agencies issued conflicting warnings to the public,” she said.

    The U.S. Food and Drug Administration (FDA) was a bit more responsible, warning the public “to stop using THC-containing” vapor products while the U.S. Centers for Disease Control and Prevention (CDC) recommended consumers “stop using e-cigarette products” altogether, said Gowen. “As a result, the media went into a frenzy and began to sensationalize the headlines. Vaping death headlines soared throughout the national news outlets, becoming the top stories in the morning and evening news for weeks. The vaping industry quickly came under attack. And, unfortunately, the CDC did nothing to clarify their warnings. Instead, they choose to continue to lead their reporting with self-reported patient claims.”

    Gowen explained that the panic then trickled down to individual states. Some governors used their executive powers to issue statewide emergency bans on nicotine-based vapor products, especially attacking and targeting flavored vapor products. “To counter this, many industry stakeholders are joining forces and filing lawsuits, but as we know, that takes time, and businesses and supply chains are being greatly affected,” she said. “Many vape shops have already closed their doors. Many other businesses are reporting double-digit declines as a result of the issues.”

    As of today, the CDC and the media are reporting a little more responsibly, according to Gowen. The latest CDC warning recommends that consumers do not use e-cigarettes or vapor products containing THC. A stark contrast from the organization previously stating not to use e-cigarettes at all. “As a result, the headlines are slowly improving and telling a more realistic story. We are seeing, in my opinion, more responsible reporting,” said Gowen. “THC vaping products are actually in the headlines. Michigan, which was the first state to impose an emergency ban, is now reporting that [a] ‘Michigan resident dies from vaping-related illness as state remains silent about black market THC.’ Other media outlets, such as CNN, are warning consumers to ‘stop using THC vaping products.’ This is a stark contrast to the reporting in September.”

  • It’s Showtime!

    It’s Showtime!

    IT’S SHOWTIME!

    The Tobacco Plus Expo, the year’s first major industry trade show, sets the scene for the vapor market’s outlook post-May.

    By Timothy S. Donahue

    It keeps getting better. The Tobacco Plus Expo (TPE), the first major industry trade show of the year, continues to grow in both attendance and quality. Since being taken over by the Tobacco Media Group (TMG), which is owned by Kretek International, the TPE has become a show that retailers and manufacturers must seriously consider attending.

    The exhibition brings together players from the vapor, CBD, marijuana, cigar, shisha, snus and other tobacco-related industries. Most importantly, the TPE provides plenty of insight into how the vapor and e-cigarette industry will look for the coming year. If that tradition continues, there is going to be a huge number of disposable flavored vapor bars coming to the market. There are also going to be fewer places for retailers to purchase e-liquids and vapor hardware.

    Since the U.S. Food and Drug Administration (FDA) elected to not include disposable vapor products in its ban of flavored pod systems, several new flavored disposable products have come onto the market. During the TPE, held in Las Vegas in late January, companies offering disposable flavored products nearly outnumbered the amount of e-liquid and hardware manufacturers combined.

    Most of these products are considered new, meaning they were not on the market prior to Aug. 8, 2016, the FDA’s deadline for vapor products to be on the market without a premarket tobacco product application (PMTA) authorization. All vapor products must be removed from the market on May 12, unless they have submitted a PMTA to the FDA.

    Dimitris Agrafiotis, executive director of the Tennessee Smoke Free Association, told attendees during the seminar “Waiting to Exhale—Mastering Today’s Vapor and E-Cigarette Market” that he believes the FDA’s flavor ban only made things more confusing for retailers. Even now, with the ban in effect, most retailers don’t know what products can be sold and what products cannot. “Moreover, … I think the FDA is a little behind on the [actual] issues that are affecting this youth vaping epidemic,” he said. “So, the products that are designed … to be restricted to the youth were probably more popular last year than the products that are popular now for the kids. So again, we’re seeing just this huge delay from [the] FDA to catch up to the issue, the retail perspective.”

    Agrafiotis was referring to the Puff Bar, which is a brand that has also become synonymous with all disposable pod devices that typically have an average 280 mAh battery with a flavored pod containing from 0 percent to 5 percent nicotine. A representative of the FDA, which had a booth at the show, said he was very surprised by the number of disposable flavored pods being hawked at TPE. Both the FDA’s Center for Tobacco Products Director Mitch Zeller and FDA Commissioner Stephen Hahn have said sales restrictions will target the products most popular with youth and that policy will change accordingly.

    “The good thing about this policy is we have the ability, without jumping through a lot of hoops, to change our enforcement prioritization based on the data we are getting in,” Hahn said when the flavor ban was announced on Jan. 2.

    Beyond the bars, there was a very noticeable decline in the number of e-liquid suppliers at TPE. Since the TPE is the first business-to-business buying show of the year, the significantly lower number of e-liquid and even hardware manufacturers showcasing their products may be a glimpse into how the vapor industry is going to look post-May 12.

    The lower number of e-liquid companies presenting is an unfortunate sign of the times, according to David Rosenthal with Ripe Vapes, which presented at the show. “Companies are so confused about what, if any, chance they have at submitting an acceptable PMTA that they have given up,” he says. “That in conjunction with [what], from what I gather, for most companies was the worst quarter in recent memory (fourth quarter 2019) due to the EVALI scare and the teen use negative press has gutted the resources for most small companies at the worst time. Quite trying times to say the least.”

    Speaking at the same seminar, Chris Howard, vice president, general counsel and chief compliance officer of E-Alternative Solutions, said with a lack of enforcement from the FDA, especially concerning disposable products, banning flavors in closed pod systems has only opened up the door for other companies. “Like we’re seeing now, there’s more of a craze that’s going on to drop the types of products that the consumers wanted … It’s going to [be] a huge disadvantage [for] the independent vape shop,” Howard said. “I think every time you think you can’t be surprised in this industry, there’s another surprise, and the NJoy announcement of them pulling the product that was clearly exempt from the ban left me personally speechless.”

    On Jan. 29, NJoy announced that it would voluntarily halt sales of its fruit-flavored products even though they were exempt from the FDA ban. The company announced that it would stop shipping all products except those formulated to taste like tobacco or menthol when the FDA’s restrictions took effect on Feb. 6. “For NJoy to do this, you never know what’s going on behind the closed doors of a company, so I’m sure they have a lot of motivations for this decision,” explained Howard. “But what I see as an outsider is a company that has always stood for the rights of smokers and that they need an option to quit. And they’ve also said that flavors aren’t the driver of this youth issue. And so, this decision … to voluntarily ban their own flavored disposable products is very much inconsistent with everything they’ve done previously.”

    The massive recent growth of the CBD market was also reflected during the TPE. The mushrooming assortment of products containing CBD is a promising opportunity for vape shop owners looking to supplement the loss of what some show attendees expect to be a more than 50 percent decline in businesses serving the vapor industry. Many vape shop owners find the CBD market challenging because they know very little about the product, according to panelists during an education session called “Brave New World: Making the Jump into CBD.”

    Bethany Gomez, managing director of Brightfield Group, an industry research group, recognized that the CBD category can be overwhelming for retailers who are beginning to turn toward CBD because products run the gamut from pillows and lotions to vape pens and edibles.

    It’s the same scenario for many consumers. Jacopo D’Alessandris, president and CEO of E-Alternative Solutions, told Vapor Voice after the session that there’s currently just a lot of confusion overall around CBD. He says that nearly everyone has seemingly heard about CBD, but most people don’t really understand what the product does or the state of the current regulatory environment. For example, the FDA does not allow any CBD brand to make any health claims.

    “Is it for me? Is it not for me? How much should I use? The problem is you cannot really say much [in advertising or on packaging]. You cannot make any health claim,” he explains. “Shoppers don’t have a lot of experience with CBD. They need the right price point. They need to be given a good first impression … also [many] small upstart brands may not take having the necessary ingredients seriously and [may] be competing on price. There are a lot of cowboy [brands] out there, and one day the sheriff will come to town. A lot more oversight is coming.”

    Picture of Timothy Donahue

    Timothy Donahue

    Timothy S. Donahue is the co-founder and managing editor of Vapor Voice.

    Tim spends much of his time on the road, attending conferences and interviewing industry representatives.

    His networking skills, work ethic and quick mind are valuable assets to our diverse audience.