Category: Featured

  • Vaping Under Fire

    Vaping Under Fire

    Credit: Sanchairat
    Many countries continue to limit access or have outright banned vaping and e-cigarette products.

    By Norm Bour

    As much as we would like to think that vaping and the sale of vape products is universally accepted, that is not the case. The world has changed a lot over the past 10 years, and the medical community’s support has carried some weight, but old customs and rituals die hard. Here is an overview of where the status of vape remains iffy.

    Turkey

    You can use vape products where tobacco is permitted, but the Turkish government is vehemently anti-vape—regardless of the medical documentation that shows the advantages of vaping over combustible cigarettes. Since 2009, President Recep Tayyip Erdogan has led the campaign against all tobacco products, including cigarettes, regardless of their popularity.

    Turkey banned the import of e-cigarettes and related products on Feb. 25, 2020. The ban covers e-cigarettes, accessories, spare parts and solutions (e-liquids) as well as e-cigarette products that use heating or incineration, like electronic hookahs. The country had already banned the sale of electronic cigarettes.

    Erdogan’s aggressive posture has resulted in the seizure of almost 18 million packs of cigarettes in 2020 and 140,000 e-cigarettes. The government offers a hotline for people to call and blow the whistle on illegal products, and 1,500 teams scour the country doing random inspections. For vapers, the online channel remains open, and there are many foreigners who vape in the street without concern.

    India

    With a population of 1.38 billion, India has banned vaping products since 2019. With an estimated 120 million people lighting up, India has the dubious honor of having 12 percent of the world’s cigarette smokers. The country loses about 1 million people per year to tobacco-related illnesses.

    India’s aggressive anti-smoking posture has proven successful as the number of smokers has dropped significantly over the past 20 years. In 2000, it was estimated that one-third of the male population smoked, with 5.7 percent of the female population smoking. A decade later, those numbers had dropped to 23 percent for men and 2.5 percent for women. Currently, an estimated 14 percent of the country’s population smokes.

    With a 28 percent luxury tax on tobacco, there are huge incentives to quitting smoking in India. The bad news is that vaping products are lumped into the tobacco pile, but evidence for the relative safety of e-cigarettes is gaining ground. The anti-vape campaign was geared toward the young smokers, but there may be light at the end of this tunnel.

    Under the guise of preventing potential health risks to the country’s youth, India banned the “import, manufacture, sale, advertisement, storage and distribution” of e-cigarettes in September 2019. However, according to Research and Markets, the Indian e-cigarette market reached a value of $7.8 million in 2018, and it is further predicted to witness a CAGR of 26.4 percent during the forecast period (2019-2024) even with the ban in place.

    There is very little regulatory enforcement for vaping products in India. Vaping products are even being displayed on some store shelves. A few of the biggest paanwalas in the cosmopolitan cities reportedly sell Juul and other high-end hardware. It’s not plainly obvious everywhere, and the specialist “vape only” vendors are all clandestine, according to several sources. Most of the specialists are discerning and do not entertain new customers without a reference from a known customer. 

    Australia and New Zealand

    Australia has been a teeter-totter in terms of vapor regulations. In October of 2021, it declared all nicotine products illegal without a doctor’s prescription. The prescription is intended only for the patient and may not be shared or sold. The sole light at the end of this this tunnel is that nicotine- free products are excluded from this heavy-handed ban.

    Devices and liquids can be sold in all eight territories, though advertising and promotion is legal in some but illegal in others. Spotty monitoring and enforcement have resulted in a lively online trade in vapor products.

    Compared to many countries, the perceived “problems” of youth smoking are modest with percentages of vapers and smokers under 20 percent among different age groups. According to 2021 research from the Australian National University, about 16 percent of current e-cigarette users in Australia are non-smokers who have never inhaled tobacco, while the remaining third are ex-smokers. There are about 400,000 e-cigarette users in Australia.

    While often lumped in with Australia by outsiders, New Zealand has followed its own, more reasonable, path in vapor regulation. The small island country of just 5 million people estimates that 11.6 percent of its population smokes. Its priority is on reducing underage vaping and smoking.

    The Middle East

    Excluding the North African countries sometimes included in the Middle East, this part of the world is home to almost 0.5 billion people and encompasses about 20 percent of the Muslim world. While Islam frowns on tobacco use, many Muslim countries have high smoking rates. While tobacco use has been grudgingly tolerated, vaping was initially disdained, with some countries banning the practice. That is changing, as was evidenced in September 2021 when the World Vape Show was held in Dubai, which has now legalized vaping.

    Tim Phillips, managing director of ECigIntelligence, says the United Arab Emirates is leading the Middle East in vape product sales and access, but considering it started from scratch, the numbers are still small. As tobacco-oriented as this part of the world is, buyers prefer flavored liquids with three out of four sales being sweeter fruit flavors followed by menthol flavors.

    Across the Middle East, the rules are in constant flux. Currently, Kuwait, Jordan, Egypt, Saudi Arabia and Bahrain offer legalized vape, but Qatar and Oman do not. Market intelligence company Mordor Intelligence projects a growth rate of almost 10 percent through 2025 in the regional vapor market.

    In late 2020, a Euromonitor International study found only a very small minority of smokers used e-cigarettes to quit smoking in the Middle East region. Analysts found just 1.8 percent of smokers in the region took up alternatives to conventional cigarettes in 2020. The figure is up from 1.4 percent in 2017 but it remains significantly low when compared to other parts of the world.

    South America/Latin America

    On the other side of the globe, South America’s 433 million people also face an ever-changing landscape of vaping laws. The largest country, Brazil, allows vaping, with some restrictions in enclosed areas. Sales are highly regulated by the Health Surveillance Agency, which closely monitors underage sales, though enforcement of sales and production is weak.

    No. 2 by population, Argentina has banned vaping for a decade and shows no sign of changing its policy. The ban extends to nicotine-free products, and there are virtually no sales, production or importation of e-cigarettes. Ironically, Argentina reportedly accounts for as much as 15 percent of total tobacco consumption in South America.

    Contrary to some of its neighbors, Peru has been open-minded about vaping—to the point where the government appears to turn a blind eye to the practice. With an estimated 2.3 million smokers—just under 10 percent of the population—Peru has no official numbers on the vapers and vape products. It seems the country has higher priorities and has decided to leave vapers alone.

    According to Mordor Intelligence, as enforcement of e-cigarette laws are often open to local authorities, vape shops are often found in places where they are technically illegal in the region. In the entire region only five countries allow the legal sale of e-cigarettes: Chile, Ecuador, Honduras, Paraguay, and Costa Rica.

    Following the recent enactment of smoke-free laws in Paraguay, every South American country has now banned vaping and smoking in most public places. Under Decree No. 4624, approved by Paraguay’s presidency on Dec. 29, consuming lit, heated, or electronic tobacco products is permitted only in uncrowded open air public spaces that are not transit areas for nonsmokers.

    Norm Bour is the founder of VapeMentors and works with vape businesses worldwide. He can be reached at norm@VapeMentors.com

  • BAT Calls for Higher Cigarette Taxes in Japan

    BAT Calls for Higher Cigarette Taxes in Japan

    Photo: Colleen Williams

    British American Tobacco has surprised some observers by calling for higher cigarette taxes in Japan, reports the Japan Times.

    The company has submitted the request in writing to a group of lawmakers ahead of a tax system reform scheduled for 2022.

    The unusual move by a tobacco-maker comes as Japan is slated to raise its tobacco tax only for heat-not-burn (HnB) tobacco products in October 2022, which is expected to make some of such products more expensive than cigarettes.

    BAT is concerned that this will discourage smokers from switching to HnB products, which the company believes are less harmful to health than combustible cigarettes.

    The company is also requesting that the tax on heat-not-burn tobacco be increased at a slower pace than that for cigarettes in the medium to long run.

    In 2018, the government decided to increase the cigarette tax by ¥1 per cigarette each in 2018, 2020 and 2021 and the tax on heat-not-burn products in five stages from 2018 to 2022.

    According to the Tobacco Institute of Japan (TIOJ), sales of cigarettes in fiscal 2020, which ended last March, dropped 11.8 percent from the previous year to ¥2.47 trillion, due in part to a fall in opportunities to smoke outside home as people stayed at home amid the coronavirus pandemic.

    Tobacco harm reduction activists attribute the sharp drop in smoking to the rising popularity of HnB products.

    The TIOJ’s first survey of HnB products showed sales of ¥1.06 trillion, or more than 40 percent of the country’s cigarette sales.

  • Taipei Moves Closer to Banning E-Cigarettes

    Taipei Moves Closer to Banning E-Cigarettes

    Photo: Skye

    The Taipei city government has passed a ban on vapor products, reports The Taipei Times. If the Executive ratifies the measure, the city will impose a broad-ranging prohibition on the sale, advertisement, display and commercial transportation of novel tobacco products, including vaping devices and heated tobacco units.

    Additionally, vaping and using heated tobacco products is to be banned in a 50-meter zone around schools.

    Violators risk fines of between TWD2,000 ($71.76) and TWD10,000.

    The city ordinance, which initially targeted only e-cigarettes, was expanded to include heated tobacco products at the suggestion of Taipei City Councilor Wang Hong-wei of the Chinese Nationalist Party (KMT).

    Lauding the council’s decision, Health Promotion Division Director Lin Meng-hui dismissed as false tobacco industry claims promoting novel tobacco products as harm-reduction tools and smoking-cessation aids.

    Lin said government testing showed that more than 80 percent of e-cigarettes contain nicotine, and that the devices create dependence on the substance.

     The city has not drafted a timetable for implementing the ban. 

  • Doctors Reluctant to Prescribe E-Cigarettes

    Doctors Reluctant to Prescribe E-Cigarettes

    Photo: omphoto

    Not all doctors and nurses are enthusiastic about England’s intention to let physicians prescribe e-cigarettes to smokers, reports Daily Mail.

    A yet-to-be-published study, involving the University of Oxford, which interviewed 11 medical staff, found most struggled to advise long-term use of e-cigarettes because of concerns about unknown long-term effects.

    A survey commissioned by Cancer Research UK two years ago indicates that two in five English nurses and doctors would feel uncomfortable recommending e-cigarettes to smokers and one in six would never do so.

    General practitioners “find it difficult handing patients something which may cause them harm, even where e-cigarettes are far safer than cigarettes… They struggle to give people devices which may not be entirely safe or may perpetuate addiction to nicotine,” said Paul Aveyard, professor of behavioral medicine at the University of Oxford, who was involved in both pieces of research.

    Martin Marshall of the Royal College of general practitioners urged more investment in community smoking cessation centers. “’Vaping should only be seen as a way to give up smoking, with the intention to then give up vaping,” he said.

    Simon Capewell, professor of clinical epidemiology at Liverpool University, called the Department of Health plan for prescription e-cigarettes deeply worrying.

    “England is out on a dangerous limb,” he said. “Officials here have fallen for the exaggerated claims of the pro-vaping lobby, and are ignoring the health risks. The main claim, that e-cigarettes are a major aid to quitting, is wrong. If that were true, why would the multinational tobacco corporations be pushing vaping so hard?”

  • Christoph Tepr Joins Poda Holdings

    Christoph Tepr Joins Poda Holdings

    Photo: Andryei Yalanskiy

    Tobacco industry veteran Christoph Tepr has joined Poda Holdings as vice president of European sales & international expansion effective Jan. 17, 2022. In the interim, Tepr has joined the company’s global advisory board.

    Tepr has more than 15 years of commercial experience with some of the biggest tobacco and e-cigarette companies in the world, including Philip Morris International, British American Tobacco, and Juul Labs. His broad management experience spans sales operations, commercial deployment, brand management and professional services—targeting customers in mature and emerging product/service segments. He has helped drive the growth of iconic brands such as L&M, IQOS, and Juul.

    At PMI, Tepr held several key sales and management positions and was instrumental in deploying the IQOS product into the Swiss marketplace. At Juul, Tepr was hired to build the Swiss commercial organization from the ground up and, together with his team, took the company to category leadership within 12 months of launch. Subsequently, he successfully restructured the German commercial organization for Juul. Prior to this he held a commercial leadership position with British American Tobacco, focusing on commercializing and growing their Heat-not-Burn and conventional product portfolio.

    Tepr holds a MSc in International Business from Maastricht University as well as an executive certificate in Driving Strategic Innovation from IMD Lausanne / MIT Sloan.

    “Poda is an agile challenger in the fast-growing heat-not-burn space,” said Tepr in a statement. “With their proprietary technology platform, Poda represents a rare opportunity that has the potential to capture significant market share and ultimately transform and expand application areas within the category—while simultaneously improving the lives of the world’s 1.3 billion adult smokers by offering them a potentially less harmful alternative to conventional cigarettes. Having worked in multinational tobacco companies as well as for the fastest-growing e-cigarette start up in U.S. history, I look forward to using that experience to establish Poda’s European operations, set up a world-class team and make commercial headway into key European markets.”

    “I am thrilled that Mr. Tepr has agreed to join the Poda team, both as a member of our global advisory board and, in January 2022, as the vice president of European sales & international expansion for Poda,” said Poda Holding CEO Ryan Selby. “Our goal is to build Poda into a truly global company that can challenge big tobacco head on, and we believe our superior heat-not-burn technology will allow us to do just that.”

  • Tobacco Tax Dropped from U.S. Legislation

    Tobacco Tax Dropped from U.S. Legislation

    Photo: RomanR

    Previously proposed tobacco tax increases have been removed from the U.S. Build Back Better Act, a massive piece of legislation conceived to fund Covid-19 relief, boost economic recovery and invest in new infrastructure. The most recent version of the proposed bill, H.R. 5376, makes no mention of the measures.

    The dropped proposal would have effectively doubled the federal excise tax on small cigars and cigarettes, and it would have increased the tax on chewing tobacco from a little over $0.50 to $10.70—more than 21 times its current level. It also called for a new tax on vapor products.

    The proposed tobacco tax hikes attracted fierce criticism from retailers and tobacco harm reduction advocates, among others.

    On Sept. 24., the National Association of Convenience Stores sent a letter warning lawmakers against unintended consequences, such as illegal trade and underage sales.

    “When the price of a product rises too much too fast, illicit purveyors will seize the opportunity to exploit and take advantage of current users and entice new users without discriminating based on age,” the letter read. “This undermines the responsible measures our retailers have taken and creates a problem for society as a whole.”

    Earlier, the Tax Foundation cautioned that the proposal would make cigarettes—the most harmful tool to consume nicotine—cheaper than other, less-risky tobacco products in many states.

    While every U.S. state taxes cigarettes by quantity, a majority tax other tobacco products by price. When states tax tobacco products by price, the tax on the product will “pyramid” since the federal tax is levied at the manufacturer level and the state tax is levied at the distribution level, according to the Tax Foundation.

    “In effect, the state tax base includes the federal tax and becomes a tax on a tax,” wrote Ulrik Boesen, senior policy analyst in excise taxes of the Tax Foundation.

    While the most recent version of the H.R. 5376 omits tobacco tax hikes, there is no guarantee the measure will not reappear in future renderings of the proposed legislation.

  • Puff Bar CEOs Profiled

    Puff Bar CEOs Profiled

    Photo: Puff Bar

    The Wall Street Journal recently profiled Patrick Beltran and Nick Minas, co-CEOs of Puff Bar, a top-selling disposable e-cigarette brand in the United States.

    Puff Bar entered the U.S. market in 2019. At the time, it was owned by Cool Clouds Distribution of California. Cool Clouds sold the Puff Bar to the brand’s Chinese manufacturer, DS Technology Licensing, in early 2020.

    In February 2020, to curb youth vaping, the Food and Drug Administration implemented new restrictions excluding sweet and fruit flavors in reusable e-cigarettes such as those offered by Juul Labs. The restrictions did not apply to disposable devices such as Puff Bars.

    In the summer of 2020, however, the FDA ordered Puff Bar products off the market. Critics said the brand was replacing Juul as the vape of choice among young people as Juul discontinued certain flavored products. In February 2021 Puff Bar resumed sales with redesigned product containing synthetic nicotine, which remains outside the FDA’s purview.

    Minas and Beltran became executives of Puff Bar as CEO and CFO respectively in the spring of 2020, when the brand was taken over by two men and DS Technology as per company filings. The entrepreneurs owned and operated an online e-cigarette retailer called Eliquidstop.

    In the Wall Street Journal article, Beltran described the Puff Bar ingredient change as “a forced innovation,” saying that the FDA gave the company no choice.

    Puff Bar sales in retail stores tracked by Nielsen totaled $156 million for the year ended Sept. 25, according to Goldman Sachs, although it is unclear how many of those sales are counterfeit products. In a federal survey released in Sept., 26 percent of high-school vaporizers said they used Puff Bars. Among middle-school e-cigarette users, 30 percent reported that their generic brand was Puff Bars.

  • TMA Announces Virtual Annual Conference

    TMA Announces Virtual Annual Conference

    TMA will hold a virtual annual conference on Nov. 16-17, TMA 2021: From Chance to Change. As the industry has been challenged in many ways this year, TMA believes it is important to share insights among all stakeholders to equip its audience and members with the understanding and information necessary to successfully navigate the changes that lie ahead. TMA 2021 will feature two half-day interactive virtual sessions with keynotes from regulatory leaders and panel discussions from industry and stakeholder thought leaders that covers everything from Food and Drug Administration policy, marketing denial orders, product authorization pathways (PMTA, SE, MRTP, exemptions) and global trends that may surface in the U.S. and vice-versa.

    “For this year’s TMA Annual Conference, we felt it was important to capitalize on the breadth and depth of speakers and expertise that only TMA can bring and condense that into the most important topics for our attendees who have also spent the last 24 months living virtually. We are very proud of our lineup for TMA 2021 and the information that it brings to the people doing the work on the front lines. You simply cannot get this anywhere else but from TMA,” said TMA President and CEO Chris Greer.

    The program includes live keynote presentations with Q&As by FDA CTP Director Mitch Zeller and CTP Office of Science Director Matt Holman followed by these panel discussions:

    • An Applicant’s Perspective: Reflections on Where We Stand – Moderated by Jim Solyst, industry consultant
    • The Marketplace Perspective: Adjusting to Change – Moderated by Mary Szarmach, Smoker Friendly
    • Early and Often: Navigating Your Path to Market – Moderated by Jennifer Smith, Altria Client Services
    • Connecting U.S. and Global Trends – Moderated by Jeannie Cameron, JCIC International Consultants

    “2021 was another challenging year for in-person events; following feedback from our members and guests, TMA elected to hold our annual conference virtually and will host our annual meeting and conference in 2022 as an in-person and virtual event,” said Greer.

    Christopher Greer is the president and CEO of TMA, a position he has held since March 2017. Greer began his career in the regulatory compliance and government affairs sector at Verizon Wireless. In 2010, Greer joined Japan Tobacco International (JTI) USA as regulatory affairs manager. In 2016, Greer was named to the JTI USA executive team as director and department head of corporate affairs and communications for the U.S., Caribbean and Central American markets. Greer’s tobacco experience includes leading U.S. Food and Drug Administration compliance for the U.S. market, business development in the Caribbean and Central America, government relations, international trade and customs, and streamlining internal processes to reduce compliance costs.

    For this year’s TMA Annual Conference, we felt it was important to capitalize on the breadth and depth of speakers and expertise that only TMA can bring and condense that into the most important topics for our attendees who have also spent the last 24 months living virtually.

    TMA 2020 | Digital was TMA’s first virtual only event and featured an expansive program of hour-long discussions and keynotes spread over several months. TMA 2021 takes the best of that format along with a super-charged program aimed directly at those most active in the industry and stakeholder community.

    Registration will open on or about Nov. 1 and run up through the conference commencement. Registered attendees will have the ability to view content for 30 days following the end of TMA 2021 and TMA members will have access for longer still. Registration is $299 for non-members and $199 for TMA members.

    For more information, please see tma.org or send inquiries to tma@tma.org.

  • England Paves Way for E-Cig Prescriptions

    England Paves Way for E-Cig Prescriptions

    Photo: goodmanphoto

    Doctors in England may soon be prescribing e-cigarettes to help people stop smoking tobacco, according to a news story published by the Department of Health Social Care and the Office for Health Improvement and Disparities. The Medicines and Healthcare products Regulatory Agency (MHRA) is publishing updated guidance that paves the way for medicinally licensed e-cigarette products to be prescribed for smoking cessation.

    Manufacturers can approach the MHRA to submit their products to go through the same regulatory approvals process as other medicines available on the health service.

    This could mean England becomes the first country in the world to prescribe e-cigarettes licensed as a medical product.

    If a product receives MHRA approval, clinicians could then decide on a case-by-case basis whether it would be appropriate to prescribe an e-cigarette to NHS patients to help them quit smoking. It remains the case that non-smokers and children are strongly advised against using e-cigarettes.

    This country continues to be a global leader on healthcare, whether it’s our Covid-19 vaccine rollout saving lives or our innovative public health measures reducing people’s risk of serious illness.

    If a product receives MHRA approval, clinicians could then decide on a case-by-case basis whether it would be appropriate to prescribe an e-cigarette to NHS patients to help them quit smoking. It remains the case that non-smokers and children are strongly advised against using e-cigarettes.

    E-cigarettes contain nicotine and are not risk free, but expert reviews from the U.K. and U.S. have been clear that the regulated e-cigarettes are less harmful than smoking. A medicinally licensed e-cigarette would have to pass even more rigorous safety checks.

    Smoking remains the leading preventable cause of premature death and while rates are at record low levels in the U.K., there are still around 6.1 million smokers in England. There are also stark differences in rates across the country, with smoking rates in Blackpool (23.4 percent) and Kingston upon Hull (22.2 percent) poles apart from rates in wealthier areas such as Richmond upon Thames (8 percent).

    E-cigarettes were the most popular aid used by smokers trying to quit in England in 2020, according to the Department of Health and Social Care. E-cigarettes have been shown to be highly effective in supporting those trying to quit, with 27.2 percent of smokers using them compared with 18.2 percent using nicotine replacement therapy products such as patches and gum.

    Some of the highest success rates of those trying to quit smoking are among people using an e-cigarette to kick their addiction alongside local Stop Smoking services, with up to 68 percent successfully quitting in 2020 -2021.

    We fully welcome the news that the NHS in England is exploring opportunities to prescribe vaping products to help people quit smoking.

    “This country continues to be a global leader on healthcare, whether it’s our Covid-19 vaccine rollout saving lives or our innovative public health measures reducing people’s risk of serious illness,” said Health and Social Care Secretary Sajid Javid.

    “Opening the door to a licensed e-cigarette prescribed on the NHS has the potential to tackle the stark disparities in smoking rates across the country, helping people stop smoking wherever they live and whatever their background.”

    Vapor industry representative welcomed the prospect of e-cigarettes on prescription.

    “We fully welcome the news that the NHS in England is exploring opportunities to prescribe vaping products to help people quit smoking,” said Doug Mutter, director of VPZ, the U.K.’s largest vaping retailer with 157 stores throughout the country.

    “The pandemic has triggered an increase in smoking rates and the public health problem has been compounded by funding cuts for NHS stop smoking services and local support groups.

     “However this progressive and innovative approach being considered by the NHS in England has the potential to reverse this damage and bring new momentum to our ambitions of becoming a smoke free nation by 2030.”

    The government deserves huge praise for taking this bold decision to look more closely at the use of vaping when it comes to smoking cessation and for taking an evidence-based, science-led approach.

    “The government deserves huge praise for taking this bold decision to look more closely at the use of vaping when it comes to smoking cessation and for taking an evidence-based, science-led approach rather than the nonsensical anti-vaping, anti-harm reduction stance of some countries,” said John Dunne, Director General of the U.K. Vaping Industry Association.

    “This announcement by the Department for Health is just the latest in a long line of breakthroughs for those of us who for years have advocated vaping as the best and most effective method for people looking to quit smoking.”