Smoore is the manufacturer of several vaping products that have survived strict government scrutiny.
By Timothy S. Donahue
The U.S. premarket tobacco product application (PMTA) process is one of the world’s most rigorous regulatory pathways to market for nicotine products. Out of nearly 7 million applications, only 23 e-cigarette-style products have been approved for marketing by the Food and Drug Administration. Most of the approved products have been manufactured by a single company.
Smoore International Holdings, through its subsidiary, Shenzhen Smoore Technology, manufactures the Njoy Ace, Njoy Daily, Logic Power and Logic Pro devices. The Njoy Ace is the most technologically advanced vaping product to receive marketing approval in the U.S. It is the first e-cigarette authorized by the FDA that is equipped with ceramic coils that are manufactured by FEELM, the atomization brand owned by Smoore Technology. The Ace marketing orders mark the first approval by the FDA of a pod-style vaping product.
Garnering the marketing orders required plenty of forethought and investment from Smoore. Based on PMTA requirements, Smoore established a comprehensive analytical testing and safety assessment system, including the vaping industry’s first corporate toxicology laboratory, which explores the health impacts of exposure to e-cigarette vapor by means of cytotoxicity tests. These test the reaction of living cells to different components of e-cigarette vapor. The company has also developed the third generation of in-house safety standards, Smoore 3.0, which covers all of the necessary PMTA tests, including testing for harmful and potentially harmful constituents.
In a conversation with Tobacco Reporter, FEELM Marketing Director Sofia Luo attributed the success of Smoore products in the regulatory process to the company’s detailed and lengthy research and development process, which includes a rigorous testing and safety assessment system.
“FEELM ceramic coils have more than seven years of research and development. It is the first black ceramic atomization coil that presents high harm reduction performance in the electronic atomization industry. It provides more flavor than a cotton coil,” Luo said. “’FEELM Inside’s technology has also been upgraded and optimized continuously since its debut. We believe that only innovation from bottom to top can lead to industry breakthroughs and allow us to provide outstanding products for our clients.”
Because of their innovative atomization technology, FEELM coils significantly increase Smoore clients’ chances of garnering an FDA marketing order and meeting China’s e-cigarette standard. Currently, the top four Chinese e-cigarette brands with the highest production quotas (amounting to 80 percent of the total) are partnered with the FEELM brand.
A quality coil is a much-needed component for generating flavor in vaping products. Looking at the current regulatory landscape, tobacco will likely remain the dominating flavor in both the U.S and China. Tobacco taste-only policies could also impact other regions. According to Luo, Smoore has upgraded its ceramic coils, which can be specifically tailored toward tobacco flavors.
“To comply with the Chinese national standard for e-cigs released this year, domestic brands use materials directly extracted from tobacco for e-liquid production, making it harder for coil manufacturers to produce a suitable device,” explains Luo. “We developed a comprehensive technology solution [that helps Smoore’s] Chinese and overseas clients to study [and develop new innovations] and produce better e-cigarette products. This continuous innovation is the foundation for the advancement of Smoore and the rapid development of the e-cigarette industry.”
Innovation is important for the industry. Smoore has been a frontrunner in innovation and has applied for 4,300 global patents. The company must also be diligent in protecting its intellectual property. Last October, Smoore filed a complaint under the U.S. Tariff Act accusing 38 American and Canadian companies and individuals of infringing on three of its patents and one of its trademarks. As of April 20, 17 of the 38 defendant companies had signed consent letters or settlement agreements.
To stay ahead in innovation, Smoore has recruited over 1,500 R&D experts, accounting for more than 40 percent of its total staff. The company has applied for more than 500 vaping-related heating patents. Recently, Smoore launched the FEELM Max, the world’s first ceramic coil disposable pod solution. The ceramic coil allows for a higher level of safety and harm reduction compared to previous devices.
Smoore presented its FEELM Max disposable technology solution at the Indonesia Electronic Atomization Exhibition (IECIE 2022), which took place at the Jakarta International Convention and Exhibition Center in late October. Speaking at the exhibition, Smoore Vice President Clayton Shen highlighted the importance of technological innovation in driving progress in the vaping industry.
During his presentation, Shen explained that the closed system is the fastest-growing category in the next-generation tobacco market and will claim a significant market share over time. According to Smoore, ceramic coils solve longstanding coil challenges such as leaking liquid and a burnt taste. FEELM’s ceramic coils, said Shen, are used by many of the leading vapor product manufacturers, such as Relx and Njoy.
Founded in 2009, Smoore was one of the first companies to join the e-cigarette industry and later became China’s first billion-dollar vapor company. Smoore International Holdings, parent to Shenzhen Smoore Technology, is also the first vapor company to be listed on the Stock Exchange of Hong Kong. Globally, Smoore is considered one of the most valuable vapor industry manufacturers. According to Frost and Sullivan, Smoore is No. 1 in the global vaping device market with a 22.8 percent market share in 2021.
Smoore is parent to Vaporesso and FEELM, two vaping brands that have gained global recognition for their innovative products. Vaporesso is an open system product brand created in 2015 and is “dedicated to establishing a smoke-free world while raising the quality of life for its users,” according to Luo. “Based on its continuous innovation, strict quality control and substantial commitment, Vaporesso creates products that can fit all levels and styles of vapers.”
FEELM is a closed system technology brand that has been devoted to providing comprehensive atomization technology for global tobacco giants and independent e-cigarette brands, according to Luo, adding that FEELM manufactures FEELM Inside and FEELM Air, the latest in closed pod systems, and FEELM Max, a disposable system.
“This year, FEELM has started to bring the advanced technology of ceramic coils to the field of disposable vapes, hoping to bring our consumers of disposable products the same atomizing experiences as a closed pod system. Compared to other disposable products, FEELM presents a better performance on safety and harm reduction,” Luo said. “Developing and upgrading atomization technology to better optimize the user experience has been a goal, and we wanted to support our clients in launching disposable vapes with ceramic coils in the global market rapidly. This has provided end consumers with more choices.”
When Smoore International announced its financial results for 2021, it reported annual revenues of rmb13.75 billion ($2.16 billion), representing a year-on-year increase of approximately 37.4 percent. The company credited its FEELM brand and its innovative vaping solutions for its growing success. “The driving force of the atomization industry is technological innovations, which brings fundamental breakthroughs in product safety and flavor reproduction,” said Smoore board chairman Chen Zhiping at the time.
In its effort to provide consumers more choices in harm reduction products, Smoore has now launched Metex, its heat-not-burn division. The company’s goal is to create a new heating technology R&D platform “that connects the present and the future, balancing the beauty of technology and life,” according to the Metex website. Metex aims to provide its business partners with one-stop supply chain solutions, from core heating technology research to product development and final production.
While Smoore began as an e-cigarette company, the company increasingly views itself as a technology company. Recently, it changed its email address from @smoorecig to @smooretech to better reflect the company’s growing goals. Luo said that changing the email suffix was a way to “better convey our technology” concept to the public, and at least 10 percent of the company’s profits every year are reinvested into its science and technology components, including Smoore’s 14 research institutes that the company has established around the world.
Smoore is growing rapidly. The company expects the e-cigarette market to continue growing at a significant stride over the next five years. Industry experts say product innovation, too, is going to continue at a rapid pace. Luo said that smoking alternatives are becoming increasingly popular worldwide as more consumers and governments realize the significance of e-cigarettes in supporting harm reduction. Improvements in the manufacturing process, she says, will help increase the options for consumers, and manufacturers will inevitably move from semiautomated production lines toward fully automated production lines.
“Regarding the technical development in the overall e-cigarette market, we believe that improving safety, taste optimization and improving the efficiency of nicotine delivery are the major trends in the future. We also are conducting in-depth research on these important technologies internally,” Luo said. “As for the device development trend, we believe that consumers prefer to purchase environmentally friendly and carbon-reducing products as we move toward the future. Consumers need more diversified choices.”
Smoore’s new FEELM Max disposable pod line includes products featuring concepts that help minimize environmental concerns, according to the company. FEELM also published its Carbon Neutral Plan, and the company is committed to implementing increasingly high sustainability standards into its business strategy. “We are moving toward carbon neutrality,” Luo said. “It’s part of [our] strategic plan moving forward.”
With atomization technology being the foundation for Smoore, the company is looking toward more diversification over the next five years and growing outside the vaping industry. Luo said that the company is increasing its research and development investments for atomization improvements in the medical and beauty/cosmetics industries, for example.
“In addition to vaping products, Smoore is committed to integrating atomization technology into more industries, distributing these technologies to other industries,” Luo said. “Our medical atomization and beauty atomization products are now being tested. After their launch, they will broaden the business categories of Smoore and increase the scope of our clients. We are very excited about enhancing our future development through multiple driving incentives and wider roads. And we firmly believe that atomization makes life better.”
The head of the Australia’s Therapeutic Goods Administration (TGA) has acknowledged shortcomings in the country’s vaping regulations, according to tobacco harm reduction activist Colin Mendelsohn.
Writing on his website, Mendelsohn says TGA boss John Skerrit “has finally admitted the disastrous and predictable failure of Australia’s vaping regulations,” which among other things require vapers to obtain a doctor’s prescription to buy nicotine-containing e-cigarettes
During questioning in Australia’s Senate, Skerrit acknowledged not only that there has been a dramatic increase in youth vaping, but also that large numbers of low-quality products are entering the country and are being sold on the black market, according to Mendelsohn.
In addition, Skerrit noted that only 1,353 out of 130,000 registered doctors have applied to be authorized e-cigarette prescribers and less than 10 percent of adult vapers have a prescription for nicotine.
According to Mendelsohn, Skerritt had previously promised a review of the regulations, which were introduced on Oct. 1, 2021, at three, six and 12 months. Instead, he wrote, the TGA and government had a secret meeting of unnamed vaping experts.
Mendelsohn said it is likely that further restrictions and enforcement will be recommended by “the experts” to double down on their de facto prohibition. “This will only lead to greatly reduced legal vaping and more deaths from smoking,” he wrote.
The vaping industry is born of innovation. During GTNF 2022, held in Washington, D.C., Sept. 27–29, nicotine industry stakeholders brought to the forefront the challenges that the electronic nicotine-delivery system (ENDS) market is facing. Many said lives are being lost and the vaping industry is being crippled by regulations that many industry stakeholders say are designed to keep smokers hooked on combustible cigarettes. A well-respected nicotine industry conference, GTNF 2022 highlighted the need to allow nicotine consumers access to less risky delivery systems.
The GTNF is held each year in varying cities around the globe. It consists of representatives and stakeholders in the global nicotine industry. It offers insight to its attendees through expert panels and keynote speakers that provide diverse viewpoints on a variety of aspects concerning the worldwide nicotine industry. The GTNF is also the parent organization for Vapor Voice and its sister publication, Tobacco Reporter.
This year, seminar speakers nearly 300 in-person attendees and 500 online registrants that access to products is being denied mainly by regulations, especially by the U.S. Food and Drug Administration and its Center for Tobacco Products, which is charged with regulating all nonmedical nicotine and tobacco products, including ENDS in that country. In this special section dedicated to GTNF 2022, Vapor Voice shares some of the sessions that helped paint a precise picture of what’s wrong and what could be done to possibly help dispel the current cloud of misinformation that surrounds ENDS products and help adult smokers gain better access to less harmful ways to consume nicotine.
The ENDS industry also won several awards at the GTNF, which hosts the nicotine industry’s Golden Leaf Awards. FEELM, the flagship atomization technology platform belonging to Smoore, the world’s largest vape manufacturer, won “Most Promising Innovation” for its FEELM Max device, and ALD won the “Reducing Environmental Impact Innovation” award for its innovative biodegradable technology design and cutting-edge product concept. Additionally, Innokin won “Best Innovation Breakthrough” for its joint venture with Aquios Labs to develop water-based vaping technology.
Forgotten Smokers
Most smokers belong to vulnerable groups, suffering from issues such as mental illness or unemployment.
By VV staff
Rather than being “forgotten,” as the session’s title suggested, people who smoke are an unexplored, stigmatized and often misunderstood species, according to the participants in a GTNF discussion about consumers. While consumer centricity has become a buzzword in the reduced-risk product industry, companies still have a lot to learn about their target group.
Altria, whose vision is to responsibly lead the transition to a smoke-free future, examined the plight of consumers on their journey to less hazardous products. “We had done a comprehensive research program about the interest in vape products, but what was really missing was to bring the voice of the consumer directly to the organization,” said Brent Taylor, managing director of consumer and marketplace insights at Altria.
Last year, the company initiated “Project 21,” a study of 21 consumers of combustible tobacco who were interested in switching to less harmful nicotine products (see “Listening to Nicotine Users,” Tobacco Reporter, September 2022). Over 21 days, Altria’s researchers catalogued the study participants’ behavior via videos and weekly surveys. The participants were asked to “do their best” but didn’t get any guidance, as Altria wanted to learn how they tackled the challenge on their own. Their progress was checked after three weeks, three months and six months.
After six months, 15 participants were still smoke-free. The people who were most successful were those who really wanted to switch and held themselves accountable. The project also showed that many factors unrelated to the product category, such as a bad day at work, impacted the success of participants in transitioning. Each of the journeys was unique and entailed its own set of complications. For all participants, it was a highly emotional experience, according to Altria.
Kim “Skip” Murray, a person who vapes and a tobacco harm reduction (THR) advocate who until last year ran a vape shop in Minnesota, related experiences from her customers that illustrate how external factors, such as misinformation and economic strain, can impact attempts at switching. One of her customers, a Vietnam veteran with chronic obstructive pulmonary disease, returned to smoking for some months after press reports and health authorities mistakenly attributed the e-cigarette or vaping product use-associated lung injury (EVALI) outbreak to nicotine vapes.
Some clients reverted to more harmful but less expensive cigarettes when their budgets were tight. Discouragingly, the Food and Drug Administration’s marketing denial orders forced products off the market that had helped Murray’s customers quit cigarettes while leaving combustible products widely available. Murray said she was unable to dispel the myths about EVALI and many of the other false narratives about vaping. The number of people who came into her shop wanting to quit dropped substantially, eventually forcing her out of business.
Alex Clark, CEO of the Consumer Advocacy for Smoke-free Alternatives Association, stressed the importance of language in the smoking and health debate. “Smoker,” he said, has become a pejorative term. “We’re now focusing on people who have a history of being underprivileged, undeserved and oppressed—people who we don’t see in offices or at conferences; people who have been pushed to the margin of society.” Having smoked heavily in his youth, Clark recalled being told that his habit was a character flaw. The stigma of having no control over his decisions and essentially being a drug addict, Clark said, stuck with him even after he had switched to vaping.
Most of the 30 million Americans who smoke today belong to vulnerable groups, suffering, for instance, from mental illness or unemployment, according to health behavior consultant Cheryl K. Olson. Among people in custody, the percentage of people who smoke is four times higher across the world. Together with other researchers, Olson explored the potential of vape products for use in a prison environment and found that the acceptance was 95 percent. “For vulnerable groups, harm reduction is a realistic goal if nicotine abstinence is not,” she said. “Our findings about these groups have the potential to rebalance the conversation about appropriateness for the protection of public health.”
Will Godfrey, editor-in-chief of Filter and executive director of the Influence Foundation, bemoaned the lack of synergy between harm reduction for illegal drugs and harm reduction for tobacco.
Many illegal drug users smoke, and it would make sense to apply harm reduction strategies to both habits. In reality, those running drug-related programs are often unwilling to apply harm reduction to tobacco use. Bizarrely, some needle exchange programs for intravenous drug users are accompanied by anti-vaping policies, noted Godfrey.
He blamed the “deep suspicion” of the nicotine industry within the left-wing harm reduction movement as well as the growing influence of Bloomberg Philanthropies, a big funder of anti-smoking programs that is notoriously hostile to vapor products.
Godfrey urged the administrators of drug harm reduction programs to extend the harm reduction principle to smoking. “It is vital that THR, including the industry, builds momentum in this direction,” he said. “The hostility to the industry won’t go away but is surmountable, as the role of pharma in drug harm reduction has shown.”
Reservations Required
The FDA’s CTP Director King says the Reagan-Udall review of the agency will be complete by mid-December.
By VV staff
There are plenty of reservations about the way in which the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) has handled its responsibilities. During a brief speech at the GTNF 2022, the new director of the CTP, Brian King, did little to quell those concerns. He did, however, acknowledge the continuum of risk. “We do have certain products that are lower risk than combustible cigarettes, and that’s an important component of the dialogue,” said King.
King told attendees that there is an opportunity for the CTP to assess the risk of youth vaping initiation and counterbalance that with the opportunity for adults who use e-cigarettes to quit combustible cigarettes.
“I think that [the] public health standard is pretty critical to the work we do, and it’s definitely a guiding light in terms of my determinations and decision-making,” he said. “Ultimately, it comes down to the science … it’s very critical, to me, to ensure that we use that as our guiding light. And of course, the onus is on the applicants to ensure that they are providing the most robust signs possible to inform decision-making.”
The FDA has long been criticized for its handling of the premarket tobacco product application (PMTA) process and is currently defending multiple lawsuits from vapor companies challenging its marketing denial orders (MDOs), including two from Juul Labs, which recently filed a lawsuit over the regulatory agency’s refusal to disclose documents supporting its MDO.
Juul claims the agency overlooked more than 6,000 pages of the data it submitted on the aerosols that users inhale, according to Joe Murillo, chief regulatory officer at Juul Labs, who also spoke at the conference (see “A Question of Integrity,” page ??).
King said that a sizeable portion of youth are still vaping flavored and disposable products. However, he also said that the potential benefits for adult smokers are “mutually exclusive” from youth uptake concerns. “I don’t think that they necessarily have to be separate; they can certainly be explored concurrently,” he said. “But again, we need to ensure that we’re considering the science from both ends when making our decisions.”
King said the agency is “continuing to make progress” on the estimated 1 million PMTAs for nontobacco nicotine products as well. He said over 90 percent of the applications have been completed. “We have 350 acceptances so far, and there’s about 800,000 that have received an RTA [a ‘refuse-to-accept’ letter], and I’m hopeful that within the next few weeks we should be able to get through all 100 percent of those 1 million.”
Being accepted for review is only the first step in the PMTA process. There are six stages, or rounds, to the PMTA process. After acceptance is filing, then a substantive review before an action is taken. King called the first step an important one. “[It’s] an important step, and I’m committed to ensuring that we keep things moving as expeditiously as possible,” King said.
King recently told the AP that he believes “there’s a lot of really important science and innovations” that have occurred in the vaping industry in recent years, adding that the most notable is nicotine salts in e-liquids. “We know that when you smoke a tobacco product, it’s a very efficient way to deliver nicotine across the blood-brain barrier. So it’s been very difficult to rival that efficiency in another product,” said King in the interview. “But in the case of nicotine salts, you have the potential to more efficiently deliver nicotine, which could hold some public health promise in terms of giving smokers enough nicotine that they would transition [off cigarettes] completely.”
King also discussed the FDA’s ability to force companies to comply with its MDOs. So far, very few companies that have been told to remove their products from the market have complied. King said the agency has multiple enforcement options to bring both manufacturers and retailers to heel.
“We have several tools available to us, including advisory actions,” he said. “We also have regulatory enforcement actions, including voluntary recalls as well as various other requested recalls. We can also take administrative action, civil money penalties (in terms of manufacturers, that penalty cannot exceed $15,000 for any single violation or $1 million for any number of violations related to a single action),” explained King. “When it comes to judicial action, we can do seizure, injunction and also criminal prosecution. I will say that when it comes to enforcement and compliance, nothing is off the table.”
King also updated attendees on the FDA’s external review of the CTP’s procedures, which is being conducted by the Reagan-Udall Foundation. Lauren Silvis, a former FDA chief of staff, was named as chair of the panel that has been asked to “evaluate regulatory processes and agency operations related to tobacco to help the center address new challenges as it works to reduce death and disease from tobacco and achieve its public health mission.”
“Within only a few weeks of assuming this role, we were told that there would be an external evaluation,” said King. “I actually wholly welcome it. I think it’s a good opportunity, particularly with new leadership, to identify areas where we’re doing things very well but also identify areas where we can enhance our efficiency and effectiveness. I have had meetings with [Silvis] and her team, and I’m confident that we’re going to get very useful information.
“It’s an ambitious timeline, 60 business days, so it’s going to work out to about 90 days total. It should finish probably by the end of the year, mid-December, and I’m looking forward to the opportunity to hear the recommendations. And I do have a very open mind on this. I’m always for improvement.”
King expects there will also be opportunities for external engagement, including listening sessions. He could not provide specifics during the speech but said he welcomes feedback from others in terms of informing the CTP’s processes.
“It’s not a one-size-fits-all, but I do think that we have some great opportunities here,” he said. “I’m fully committed to listening to the evaluator’s input and ensuring that we use it in a very useful way … then we’ll take it from there … I’m sure many of you have heard publicly, my calendar is rapidly filling up, and we are meeting with many—I know I’ve met with several of you in the room already, and I value those opportunities to meet with folks from across the spectrum, whether it be industry or public health … to hear people’s insights, what your priorities are.
“And those have been very productive and helpful to me. I do listen. I think it’s a very useful opportunity to me in terms of hearing specifically what the recommendations are from industry and what are areas where you feel it would be useful for FDA to engage in to make your life easier in terms of submissions and applications and [what] processes are overly complicated and could be improved,” said King. “I’m fully committed to ensuring that happens.”
A Question of Integrity
Juul Labs accuses the FDA of submitting to political pressure when the agency issued Juul an MDO.
By VV staff
Joe Murillo is right. It is hard to believe that the U.S. Food and Drug Administration reviewed Juul’s premarket tobacco product application (PMTA) thoroughly. Murillo, chief regulatory officer for Juul Labs, told attendees of the GTNF 2022 that the regulatory agency wrongly issued Juul a marketing denial order (MDO). That order was later stayed by both a court and the FDA itself.
The FDA says it follows the science; Murillo counters that the entire process is “substantively and procedurally flawed,” adding that the MDO was not based on a fair and complete review of the science in Juul’s PMTAs.
“Our PMTAs included over 125,000 pages of data. They included information and analyses from over 110 scientific studies, and these studies cut across nonclinical, clinical and behavioral research programs,” he said. “We assessed our products relative to combustible cigarettes … and relative to other marketed [electronic nicotine-delivery system] ENDS products. It seems as though, among other things, FDA overlooked at least 6,000 pages of these data.”
Murillo said that the FDA prides itself on having the “highest scientific integrity and public health focus, shielded from political interference.” That statement mirrored what was said by the director of the FDA’s Center for Tobacco Products, Brian King, who spoke at the same conference. “Ultimately, it comes down to the science … it’s very critical, to me, to ensure that we use that as our guiding light,” King said (see “Reservations Required,” page ?).
Despite that stated commitment, the PMTA review process appears to be susceptible to politics, according to Murillo. He noted that the FDA has been under immense pressure to deny Juul Labs’ applications and remove Juul products from the U.S. market. “This political pressure cannot continue,” said Murillo. “FDA cannot allow the hostile conversations around tobacco harm reduction to seep into what should be a science and evidence-based process. The very integrity of the FDA’s review process is now called into question. The FDA must guard against politics and improper attempts to influence their scientific decision-making. We need to find common ground, turn down the temperature of the rhetoric and put people who smoke [combustible cigarettes] at the center.”
Juul Labs is now in a fight for its future. After the e-cigarette maker appealed the MDO in court, the FDA on July 5 stayed its own order. The agency announced that it would review its decision after determining that “There are scientific issues unique to this application that warrant additional review.” Alongside the agency’s internal review, Juul Labs also submitted its own administrative appeal with the FDA.
“In this appeal, we demonstrate how the agency’s denial of our applications was substantively and procedurally flawed,” said Murillo. “We requested, among other relief, that FDA rescind its denial and put our applications back into substantive review. Throughout this process, Juul products will remain on the market, and we are confident we can address any further questions the agency may have. So, we will continue to fight for the millions of adults who use our products. They deserve a complete review of the science and evidence we presented as required by law and without political interference.”
Murillo said that while underage use is a concern, last year’s National Youth Tobacco Survey (NYTS) showed a significant decline in underage use compared with just two years ago, and youth use of cigarettes continues to decline to historic lows. Murillo said the decline in underage years can be attributed to many factors, including raising the minimum purchasing age to 21 and measures to further restrict access and limit appeal.
“But not all trends related to underage use are positive. Many of us are worried about the rise of disposable flavored products among youth,” he said. “In the United States, fly-by-night companies have flooded the market with illegally marketed products. These products flout laws and regulations and present a public health danger.”
According to Murillo, regulators must improve and prioritize enforcement. “True Age, NACS and other stakeholders are firmly committed to reducing and preventing underage access to tobacco products at retail,” he said. “Scientists and public policy experts have put forward thoughtful solutions to preserve the harm reduction opportunity for adults while also protecting youth.”
Meanwhile, regulatory uncertainty has created immense barriers to innovation in reduced-risk products. This uncertainty diminishes confidence in the products themselves and the category, according to Murillo, who said that uncertainty “has a chilling effect” on investment and further innovation.
“To be crystal clear, this uncertainty only prolongs cigarette use,” he said. “Despite challenges for alternatives like ours, with the PMTA process, new combustible cigarettes continue to receive authorization via substantial equivalents and even PMTA and MRTPA [modified-risk tobacco product application] pathways; 13 years after the passage of the Tobacco Control Act, cigarettes remain far and away the most used tobacco product in the United States, making up over 75 percent of the market.
“Less than 3 percent of the total tracked ENDS market is authorized under FDA’s PMTA process … the rest of the market, the vast majority of ENDS products fall into one of three precarious buckets,” explains Murillo. “One, those being sold illegally. This includes companies that have not even submitted to the PMTAs. Two, those awaiting a marketing decision from FDA after years of review; or three, those stuck in a highly opaque administrative process—one that’s subject to a shifting requirement and unpredictable timelines.”
Innovative products that are specifically designed to advance public health have a steep road ahead in the U.S. Murillo said this is alarming. While the technology is available to accelerate the displacement of combustible cigarettes, a slow and uncertain path to the market is a significant obstacle.
“The data suggests that ENDS sales are displacing cigarette sales. So, we can see an emerging path to end the combustible cigarette once and for all. Unfortunately, that path remains blocked by a political and regulatory environment that inhibits meaningful progress … I think most of us in this room appreciate that combustible cigarettes will one day be obsolete,” he said. “Undoubtedly, that is our company’s goal. It’s not a question of whether, but of when … As an industry, we can accelerate this public health goal through product innovation and evidence-based policy development. But the viability of the marketplace is at stake, especially for those companies that don’t sell cigarettes.”
Murillo said an example of innovation in a market that is more accepting of ENDS products as a tool toward harm reduction can be found in the U.K., where Juul Labs launched its Juul 2 product last year. The platform includes cutting-edge technology designed to deliver a more consistent vapor experience with improved nicotine delivery. Its temperature control minimizes the production of toxicants, and the platform can help address underage use through its pod technology.
“We’ve also developed a mobile app that can be used for age verification and locking the device when it’s out of the range of a user’s phone,” said Murillo. “The app has other features that enhance the experience for users as they switch away from cigarettes. We’re confident that Juul 2 delivers a better experience for adult smokers than products currently available, which should result in increased switching from combustible cigarettes.”
In the end, Murillo said he is disappointed with where the ENDS industry is currently, but he has a genuine belief that there is an endgame for combustible tobacco. “Society cannot allow the death and disease associated with smoking to be a part of the incremental progress we’ve made,” he said. “Absent a renewed and fundamental commitment to the very concept of harm reduction, we will lose this opportunity.”
Perceptions of Nicotine
Because of its association with combustible cigarettes as a delivery device, nicotine is surrounded by misconceptions.
By VV staff
Participants in “The Perceptions of Nicotine” panel during the GTNF 2022, began the conversation by drawing comparisons to similar consumer products, most notably caffeine. Nicotine is found in tobacco leaves, but it’s also found, at lower levels, in plants, such as tomatoes, potatoes, eggplants and sweet peppers. However, by far its predominant source is in tobacco leaves.
Caffeine can also be found in multiple food sources, including coffee beans, tea, cocoa beans, Kola nuts and guarana berries. The amount of caffeine in guarana berry seeds is about the same as the amount of nicotine in tobacco leaves, up to about 4 percent, according to a panelist. Unlike caffeine, however, nicotine is tied to tobacco. Nicotine is a public pariah while caffeine is socially acceptable. The panelist agreed that this is due to the differences in how the public has been educated on these products. Medical professionals, for example, get much of their information from medical societies, one panelist noted.
One challenge is that the public and even many medical specialists don’t distinguish between nicotine and smoking. “I think that’s part of the problem,” a speaker said. “How do we untangle that? Nicotine does not produce disease. It’s not carcinogenic. It does increase heart rate and blood pressure. And perhaps there are some positives … it’s a stimulant, it induces pleasure, and it improves concentration, reaction time [and] performance on some tasks, but it can also reduce stress and anxiety.”
For consumers, when asked why they smoke, the most common answer is for enjoyment and pleasure; however, nicotine ranks low on the list of motivations. But when you ask a smoker, “Why do you find smoking difficult to quit?” the answer is “because I’m addicted—addicted to nicotine.” One panelist said when consumers want medical information, more than 70 percent say the first place they go is the internet. The misinformation is rampant, even from seemingly trustworthy sources.
“The first place that they turn for health-related information is the internet. More than 70 percent of people say that’s the first place they go when they’re looking for information … because it’s easy to use, and they find information that way,” a panelist said. “Just doing the quick search yesterday, you put in electronic cigarettes into the Google search engine, and the first thing you see is the Center for Disease Control and Prevention website, which is great; it’s a government resource. The Office on Smoking and Health is the place within the federal government for information on health and smoking.
“But when you click on that link, the first thing you see is information on the EVALI [e-cigarette or vaping product use-associated lung injury] outbreak. The headline is [about an] outbreak of lung injuries from e-cigarettes and vaping products. That’s not the right way to help people understand the comparative risks between cigarettes and electronic cigarettes and nicotine-replacement therapy and other lower risk [nicotine] products.”
Many years ago, smoking and addiction were joined together, and that has now created the assumption in the public that nicotine use equals smoking, which equals addiction. It’s not helping people who smoke understand how they might be able to use the products that are available, including lower risk tobacco and nicotine-containing products as well as nicotine-replacement therapy, to quit smoking. Panelists agreed the misconception was doing more harm than good for public health.
The way vaping and tobacco products are regulated is also partly to blame, according to the panel. Tobacco companies are very limited in the amount of information they can provide on their products. Swedish Match, for example, was the first company to receive an authorization for a modified-risk tobacco product. The U.S. Food and Drug Administration, however, severely restricted the ways in which Swedish Match could communicate the lower risk of its product to consumers.
“We got super excited internally. I mean, here we have a product, it had no carcinogens, no tar, no nitrosamines, significant risk reductions, and when we started looking at how and what we can communicate, it was incredibly limited … as we were going through our process, we had [tried] to figure out how to tell consumers this was different without telling them it was different,” explained a panelist representing Swedish Match. “It was very challenging. We were trying to figure out how to use different colors and different cues. It was a brand-new category, so we’re trying to educate people on a brand-new category with a can, and you didn’t even know what was in it …. It was incredibly difficult to try to do that.”
Swedish Match also gathered customer testimonials, but regulations kept the company from doing anything with them. Another panelist explained that consumers do not separate nicotine from tobacco. Nearly 80 percent of the population agree that those are virtually the same. When asked to compare the risks of products, people list tobacco as the most harmful, followed closely by nicotine and then alcohol.
Caffeine, however, is on the other end of the scale. “Caffeine is on a totally different end of the spectrum. Interestingly, when we think about where the market is moving and things are moving relative to legality, you look at CBD, look at THC, [and caffeine] is more closely associated from a harm perspective to CBD and THC,” a speaker said. “In terms of addictiveness, 96 percent of U.S. consumers would say that nicotine is addictive. Only 76 percent say that caffeine is addictive. But then, you look at harmfulness to health. You can see this wide gap that exists in terms of … the core chemical, 89 percent versus 46 percent in terms of harmfulness to health [nicotine versus caffeine].”
The panelists argued that people who smoke combustible cigarettes are less likely to try less harmful products if they perceive those products to be no different than what they’re currently using in terms of harm. There’s very little motivation for them to try them. There is also very little the industry can do to reverse the misinformation surrounding nicotine.
“The industry’s hands are tied with regard to the voice that the industry can have. But I think the role that the industry can play in it is to continue to develop high-quality, lower risk products that are acceptable alternatives for cigarettes for people who smoked cigarettes, and then get those through the regulatory process,” a panelist said. “It’s up to the FDA to communicate to consumers that there are less risky products to consume nicotine.”
Constitutional Conundrum
Law professor Jonathan Adler says some FDA rules may violate a company’s First Amendment rights.
By VV staff
There are numerous challenges to achieving the goal of tobacco harm reduction. Addressing these challenges might require thinking differently about how to approach the regulatory process and perhaps the extent to which the regulatory process needs to be changed, according to Jonathan Adler, the inaugural Johan Verheij Memorial Professor of Law and the founding director of the Coleman P. Burke Center for Environmental Law at the Case Western Reserve University School of Law, where he teaches courses in environmental, administrative and constitutional law.
Speaking at the GTNF 2022, Adler said that the U.S. Food and Drug Administration’s handling of premarket tobacco product applications (PMTAs) has been arbitrary. It’s been sloppy. It hasn’t followed its own guidances. “It’s pretty clear that the FDA was not prepared for this onslaught of applications, prepared for the volume, prepared for the type of analyses it would have to conduct,” he told attendees. “And [the agency] responded to that with a mixture of cutting corners and adopting shortcuts that would enable it to make decisions, typically negative decisions, so that it could process these applications.”
Companies aren’t happy with how the FDA has handled the PMTA process. Numerous companies have taken the agency to court, with mixed results. There are currently more than 30 court cases surrounding PMTA actions. Adler said that the FDA has responded inconsistently to these lawsuits. After denying Juul’s application, for example, the FDA decided to reconsider and review all the things it was supposed to review before issuing a marketing denial order. The agency took the same type of action with Turning Point Brands.
In other cases, however, the FDA has been willing to let the courts decide. The challenge in this approach is that the FDA is being strategic about which cases it fights in court and which cases it retreats on. “As someone that follows a lot of administrative litigation, it certainly looks as if FDA is retreating where the cases against its actions are the strongest and allowing cases to proceed where it thinks the challenges are weak,” said Adler. “[This is] either because issues haven’t been raised or because issues haven’t been printed in the strongest way possible or perhaps because the applications were weaker to begin with.
“As these precedents build, it will become easier and easier for FDA to defend against challenges to even the strongest arguments, so this is certainly part of the regulatory challenge …. We know—and this is all information that you’re all aware of—that the majority of people in the United States believe that ENDS [electronic nicotine-delivery systems] are as [dangerous] if not more dangerous than combustible cigarettes.”
There are other challenges too. Adler said the United States also has trust issues on both sides of the aisle. Many of the institutions and authorities that historically have been seen as trustworthy and would provide accurate information aren’t considered to be as reputable anymore.
“And certainly, the experience of Covid and the like has eroded that trust even more,” he said. “We need to think more broadly about how we might overcome this challenge. My own view is that we need to think more about the competitive process and how we discover how to communicate to consumers. And that word ‘discover’ is important. Because it’s not always clear what consumers want, why they want it and how you let them know that what you have might be what they want.”
In the case of nicotine products, due to FDA regulations, companies can’t compete in trying to convince smokers that their product will satisfy the desire for nicotine, or whatever else, in a less risky way. In Section 911 of the Tobacco Control Act, there are strict restrictions on what can be said about modified-risk tobacco products, including factually true statements. Adler said that’s a problem because if companies are able to compete on characteristics like health impact, it affects not only the behavior of those companies, but it also affects consumer understanding.
“This statute has also been interpreted, I would argue quite aggressively, by the FDA. The FDA’s position is that producers of electronic cigarettes can’t quote things that Brian King said here yesterday [the CTP director spoke at the GTNF on Sept. 28]. Can’t quote things the FDA has put in the Federal Register that are indisputably factually true. And if they say things like ‘This might help you quit smoking,’ well, then the FDA’s position is ‘forget [the modified-risk order] …. That makes you a drug device.’ And there’s a whole different approval process you have to go through for that.”
A constitutional law professor, Adler views Section 911 as a potential First Amendment issue. The U.S. Supreme Court, he said, has stated repeatedly that courts should be especially skeptical of regulations that seek to keep people in the dark for what the government perceives to be their own good. That includes attempts to deprive consumers of accurate information about their chosen product.
“We’re not talking about sensational claims about unproven medications or unproven treatments. We are talking about claims that the FDA itself acknowledges are true. [In a case involving the FDA and a compounding pharmacy that the agency wanted to prevent from advertising,] we rejected the notion that the government has an interest in preventing the dissemination of truthful, commercial information in order to prevent members of the public from making bad decisions with the information.
“And the circuit, in the context of nutritional supplements, has also said that it is clear that when the government chooses a policy of suppression over disclosure, at least where there was no showing that disclosure would not suffice to cure misleadingness, government disregards are far less restrictive means. It violates the relevant standards under the First Amendment.
“The FDA’s position is that no disclaimer, no disclosure can somehow cure the problem of telling people what the FDA itself has said about noncombustible products. It’s not clear to me—I mean that’s not only not rational, [but] it’s not clear to me why that’s constitutional.”
Study Sessions
Showing the FDA that flavors are appropriate for the protection of public health may be a challenge.
By VV staff
Flavors other than tobacco will not be allowed on the U.S. market. In order for that to happen, a manufacturer would need to show the U.S. Food and Drug Administration that flavors other than tobacco are appropriate for the protection of public health (APPH), and that may be more complicated than once thought. This was the opinion of Christopher Russell, director at Russell Burnett Research and Consultancy.
Presenting at the GTNF 2022 in Washington, D.C., Russell described the regulatory rationale and features of several types of research studies that can be conducted to compare the efficacy of flavored electronic nicotine-delivery system (ENDS) products versus tobacco-flavored ENDS products for facilitating switching and reducing cigarette consumption among adult smokers.
For a premarket tobacco product application, the FDA requires a range of valid scientific data and other research information to determine whether permitting the marketing of the new tobacco product qualifies as APPH. However, Russell explains, the Food, Drugs and Cosmetics (FD&C) Act, which guides the FDA’s authority, doesn’t clearly define APPH.
“Instead, to determine whether a new tobacco product meets the APPH standard, Section 910 of the FD&C Act requires FDA to, among other things, weigh the risks and benefits of the new tobacco product to the population as a whole, including users and nonusers of tobacco products, and taking into account both the likelihood that existing tobacco users will stop using such products if the new product is marketed and the likelihood that individuals who do not currently use tobacco products will start to use tobacco products if the new product is marketed,” Russell said.
To consider the marketing of a new tobacco product to be APPH, the FDA states that a PMTA must contain sufficient valid scientific information that demonstrates that the new tobacco product significantly reduces harm or the risk of tobacco-related diseases to individual tobacco users. Additionally, allowing adults access to ENDS and other noncombustible tobacco products cannot come at the expense of addicting a new generation of children and teenagers to nicotine.
“Though the FDA has sought to strike a balance in recent years between reducing youth appeal and access to ENDS on one hand while maintaining opportunities for addicted adult smokers to access ENDS on the other hand, the FDA’s current position expressed most recently in the issuance of marketing denial orders (MDOs) for flavored ENDS products is that the evidence available to FDA is clear in showing that the appeal and the likelihood of use of flavored ENDS by youth harms the public health to a level that is not outweighed by the health benefits of adult smokers switching to ENDS products,” said Russell. “In fact, flavored ENDS do not confer any incremental benefits over and above tobacco-flavored ENDS.”
The FDA has indicated that it may require a randomized controlled trial (RCT) and or a longitudinal cohort study (LCS) that demonstrates the benefit of an applicant’s flavored products help adult smokers more than they entice youth to start vaping. The FDA said it would also consider data that showed the same results through other research routes.
An RCT uses control factors not under direct experimental control. Examples of RCTs are clinical trials that compare the effects of drugs, surgical techniques, medical devices, diagnostic procedures or other medical treatments, according to Russell. An LCS is a research study that follows large groups of people over a long time. The groups are alike in many ways but differ by a certain characteristic (for example, vapers who use flavors other than tobacco, those who vape tobacco and those who smoke combustible cigarettes).
“I think FDA is—without being explicit—they are strongly communicating that an RCT or a longitudinal cohort study would provide the strongest evidence of an added benefit of a flavored ENDS product and that any application for a flavored ENDS product that does not contain one of those two studies or both of those studies will leave FDA in a position where they cannot possibly be confident that the potential benefits of the flavored ENDS would outweigh or overcome the risks to youth or would exceed the benefits of a comparable tobacco-flavored product,” said Russell. “I cannot see any circumstance in which flavored ENDS products will receive marketing authorization without having provided FDA with reliable and robust evidence from at least one of these two study designs. RCT is the gold standard in interventional research, and longitudinal cohort studies [are] the gold standard in observational research.”
Innovating for Tomorrow
Innovating should be about improving the vaping industry, not just its next-generation products.
By VV staff
When creating a smoke-free world, innovation must take place not only in terms of products but also in terms of regulation, communication, and sustainability. That was one of the messages of the “Innovating for Tomorrow” panel discussion during the recent GTNF 2022.
Ming Deng, head of Next-Generation Products (NGPs) Industry Study at Yunnan University, spoke about his desire to make NGPs smart and mobile. At present, he said, the electronic functions that differentiate an NGP from a combustible cigarette just serve as a marketing tool. However, the Artificial Intelligence of Things (AIoT)—the combination of artificial intelligence with the Internet of Things—offers considerable opportunity to improve human-machine interactions and enhance data management and analytics, among other benefits. “With AIoT, producers could trace consumers’ needs and innovate products accordingly,” said Deng.
For Meisen Liu, R&D director at Shenzhen Zinwi Bio-Tech, lower temperature atomization is one of the most important objectives in current research as it is safer for human health. A higher atomization temperature causes atomizing agents to decompose into harmful aldehydes whereas atomizing agents with a low boiling point decrease the atomizing temperature and reduce the emission of harmful substances. Liu also described how nicotine salts derived from different acids had different properties regarding sensory stimulation or taste. His company, he said, had created a new type of nicotine salt that allows for enhanced stimulation in markets where the amount of nicotine in e-liquids is restricted.
Kevin Peng, advanced technology scientist at the ALD Group, spoke about technologies to reduce the carbon footprint of vape product manufacturing and consumption. Earlier this year, his company launched a “green cigarette,” a disposable vape product featuring 6 percent lower carbon emissions than combustible cigarettes. The company also developed a super-slim pod for reusable vaping devices made from a material that has only one-third of the carbon emission of ALD’s older materials. This way, he said, his company had achieved a 50 percent emission reduction compared to other pod products.
ALD also conducted an emission assessment for its organization and products. “ESG [environmental, social and governance] is a much more difficult thing than we thought,” Peng stated. “We found that most suppliers are not very responsive in terms of such requirements.” He called for a unified industry ESG standard for suppliers, which would make it easier to reduce emissions.
To help accelerate its transformation, BAT established Btomorrow Ventures two-and-a-half years ago. Lisa Smith, the subsidiary’s managing director, related how Btomorrow had set up a number of innovative ecosystems. “It’s a highly competitive market,” she said. “It’s difficult to find the best innovators out there.” Her company’s role is to be the “handshake” to the outside world to show that BAT is an appropriate partner for innovators. Among the many tasks in BAT’s transformation are to quickly promote the ESG agenda and move beyond nicotine. In order to achieve the latter, she said, the company had to build science and credibility.
ICCPP, a provider of solutions for e-cigarettes and heated-tobacco products, believes that the key to innovation in vaporization might be the ceramic coil. The company, which focuses on research and manufacture of electronic atomizing technologies and is the parent company of the Voopoo vaping brand, introduced the world’s first nano-microcrystalline ceramic core in 2021. According to William Yu, vice president of global ODM business at ICCPP, the core is based on environmentally friendly mineral materials that result in an increased nicotine delivery and stable flavors. In combination with a powder-free technology and a porous structure, the core enables a significant increase in atomization, according to Yu. The company also develops environmentally friendly products, such as a disposable cigarette made from special recyclable paper.
Continuing to innovate is essential as the industry is at a crossroads, said George Cassels-Smith, CEO of Tobacco Technology Inc. (TTI). After the Food and Drug Administration, through its onerous market authorization processes, had “frozen” the U.S. market for next-generation products, TTI opened a new manufacturing site in Italy, which according to Cassels-Smith is more open to innovation. “It’s vital to involve science, which is one of the pillars of what is a quick-moving new technology,” he said. “It needs expertise to focus on this direction because, ultimately, we must find superior products to combustible cigarettes.”
Disposable vapes help smokers to quit combustibles but are deadly for the environment.
By Maria Verven
Cigarettes used to be the most littered things in the world.
Trillions of cigarette butts are thrown onto our streets, parks and beaches every year. The Ocean Conservancy estimates that cigarette butts account for 25 percent of the total number of garbage items collected—over twice as much as any other category. Worldwide, it’s estimated that 1.69 billion pounds of cigarette butts end up as waste each year.
While some smokers may think their butts will eventually decompose, it actually takes decades for them to degrade. Cigarette filters aren’t made of innocuous cotton; they’re made of cellulose acetate and about 12,000 nonbiodegradable plastic-based fibers.
The chemicals in a single cigarette butt can contaminate hundreds of gallons of water. They can also be dangerous, causing fatal fires that burn hundreds of acres every year.
Things have changed dramatically in the last several years as many smokers have switched to vaping, thanks in large part to the convenience of disposable e-cigarettes.
In fact, these handy-dandy devices appear to be taking over the industry since they’re the simplest and most accessible vaping devices on the market.
But in the process, we created a whole new environmental hazard that, as of yet, has no easy solution.
Popular among youth
Among all the vaping devices on the market, none are more popular than disposable electronic nicotine-delivery systems (ENDS), particularly among young people.
According to the 2021 National Youth Tobacco Survey, well over half (54 percent) of youth who reported using e-cigarettes had used disposables. The 2020 Population Assessment of Tobacco and Health Study corroborated this finding. It reported that 38 percent of young adults aged 18–24 versus 17 percent of older adults (over age 25) who had used any ENDS product in the past 30 days had used a disposable.
At the May 2022 Vaper Expo U.K., nearly every vendor offered some variety of disposable device. Many were new to the market that were capitalizing on the trend—as well as renowned companies such as Innokin, which launched its new Aquios Bar disposable device in 10 different flavors.
“Disposable vapes are certainly the hottest-selling item among smoke-free nicotine-delivery devices,” said Dimitris Agrafiotis, owner of Global eVapor Consulting, executive director of the Tennessee Smoke Free Association and brand ambassador and designer at Innokin Technology.
Agrafiotis said disposable vapes attract individuals who make impulse buys at various points of sale as well as new users who enjoy the convenience of a product that doesn’t require any knowledge of coils or ohms. They can purchase disposables nearly anywhere where cigarettes are sold. They can simply tear open the package and start vaping, making disposables the perfect solution for beginners.
“In my experience, vapers who quit smoking use disposable vapes part time as secondary devices when they don’t want to take their usual rig with them, such as at a nice dinner or in situations requiring them to be more discrete,” he said.
The technology behind disposables has only continued to improve over the past several years. Most vape pens can now deliver around 400 puffs before they’re no longer viable—nearly twice as many puffs as a pack of cigarettes can deliver. Some vape pens with larger batteries can even deliver as much as 5,000 puffs.
Another significant advance is the use of auto-draw switches that activate the device and heat the coil when the vaper inhales, delivering a smooth and seamless experience.
And thanks to nicotine salts, disposables offer a smoother vaping experience. While the nicotine level in most disposables is limited to 5 mg, vapers can satisfy their nicotine cravings without a harsh throat hit or any interference in the flavor experience.
Speaking of flavor, that’s another advantage disposables have over refillable vape devices. Manufacturers often add sweeteners to disposables to make the flavors pop without having to worry that the sweeteners will gunk up and ruin the device. The disposable will be tossed long before that happens.
The range of flavors available from disposables is mind-blowing. As more and more manufacturers take advantage of the growth in this market, they entice vapers with interesting and often exotic flavor profiles, such as bergamot and carambola.
While battery technology hasn’t necessarily improved dramatically, some brands have created larger internal or rechargeable batteries in their efforts to increase puff count. This is a step in the right direction to reduce battery waste.
The environmental impact
Even refillable and replaceable vape pens typically contain several metal, plastic and cotton elements, making them difficult to separate and recycle. Thus, they tend to end up as general household waste. Even the smaller replaceable coils and pods don’t often get recycled.
But disposable e-cigarettes are way worse because the vaper disposes the entire device, which is composed of plastic and metal coils as well as a battery cell. While some brands and vape stores offer recycling programs for disposables, most vapers simply toss them into the trash.
Millions of lithium-ion batteries, hard plastic and nicotine-contaminated pods are being disposed of in our landfills, creating a significant waste problem. Nicotine, including nicotine salt, is listed by the Environmental Protection Agency as an acute hazardous waste. When disposables leak battery acid and/or nicotine into the environment, they harm fish and wildlife in the process.
The Food and Drug Administration is required under the National Environmental Policy Act to evaluate all major agency actions to determine if they will have a significant impact on the human environment. If the environmental assessment identifies significant environmental effects, the FDA will prepare an environmental impact statement to help make informed decisions on the relevant environmental consequences and alternatives available.
In addition to assessing potential environmental impacts of new tobacco products during premarket review, the FDA has also posted information for consumers on proper disposal of e-cigarettes and e-liquid waste.
“While we are excited that lots of people are not inhaling combustible tobacco, we should be concerned over the environmental sustainability and proper ethics in the sale of these products,” Agrafiotis said. “In its quest to market and sell millions of these products, the industry has failed to implement any type of consumer education or recycling initiative that would help alleviate the disaster,” he said.
“The irony is that in most countries in Europe, plastic straws are banned—and yet these products continue to be dumped by the boatloads. I simply cannot see how governments will allow this to continue, especially in Europe, where environmental waste is such a huge issue,” Agrafiotis said.
“With TPD 3 approaching and countries already discussing legislative measures, I believe the days are numbered for disposables—at least as we know them right now.”
What’s the solution?
The first and most obvious answer is to encourage consumers to use rechargeable devices.
Consumers could also be encouraged to purchase refillable pod devices, vape pens with replaceable coils or even rebuildable tank atomizers, all of which are far more cost effective in the long run, not to mention more eco-friendly.
The industry has yet to find ways to encourage and/or incentivize consumers to dispose of these devices in the right manner. When Agrafiotis tried offering a financial incentive for every disposable brought back to his store, there were very few takers.
“The younger demographic that predominantly uses these products simply doesn’t seem to care,” he said. “At least the older demographic tends to quickly transition from disposables to open systems when they realize the daily costs and environmental impact.”
Agrafiotis said he’s unaware of any other outlets for collecting and recycling disposable vapes. “At this point, there’s no budget or avenue for us to try and change the existing system. Incentives and/or drop-off points for hazardous waste should have started with the construction and sale of the first disposable vaping device ever made.”
“The only thing I could do is break the plastic and remove the battery and bring it to a battery recycler, but I would still have to dispose the plastic and nicotine pod in the trash,” he said. “All brands would have to work together to start a viable recycling program, but unfortunately, I simply do not see this is possible.”
Nevertheless, Agrafiotis said Innokin is striving to reduce environmental waste in its products. Innokin was the first company to start using fully recyclable packaging for its open vapor systems, made entirely of paper with absolutely no plastic, he said.
The first disposable vaping device that can be disassembled and recycled, the Innokin Enviro uses materials with a lower carbon footprint—a reinforced paper shell—to replace the plastic shell found in most disposable vaping devices.
“We believe disposable vapes should have less impact on the environment,” Agrafiotis said. “With more efficient manufacturing processes and recyclable designs, our goal is to continually optimize Enviro and make disposable vaping greener. We can only hope demand grows for this approach and more companies follow in the same green footsteps.”
Clearly, the industry must act quickly to devise solutions before the products that help millions of smokers are carbon taxed or—even worse—removed completely from the market.
“Most of all, I hope we see more people quit smoking and transition to vaping, regardless of the device they choose to help them. Any vaping devices that can help smokers around the world make the switch is worth pursuing,” Agrafiotis said.
“Plastic casings and batteries simply should not go into our landfills after just one use,” he said. “More companies should be actively looking at sustainable solutions and proactively working with existing recycling companies to implement programs to keep these products out of our already overflowing landfills.”
The original “Vaping Vamp,” Maria Verven owns Verve Communications, a PR and marketing firm specializing in the vapor industry.
MORE ON VAPING WASTE
Garbage facts
There is an estimated 44.7 million tons of e-waste generated around the world every year. That waste contains up to $65 billion worth of raw materials like gold, silver and platinum sent to a landfill. The amount of global e-waste is expected to increase by almost 17 percent to 52.2 million tons in 2021, or about 8 percent every year, according to Cleanaway Waste Management, an Australian waste management, industrial and environmental services company.
Vaping products contain lithium-ion batteries, a heating element and a circuit board. These components—which may include plastic and heavy metals—make disposing of e-cigarettes a considerable challenge because of the various types of chemicals and materials involved in their manufacturing.
The global disposable e-cigarettes market size is expected to be valued at $6.34 billion in 2022, according to Future Market Insights (FMI). The overall demand for disposable e-cigarettes is projected to grow at a CAGR of 11.2 percent between 2022 and 2032, totaling around $18.32 billion by 2032.
“Demand for non-tobacco products is expected to augment the growth of the disposable e-cigarettes market in the near future. It has been observed that older people prefer this product as it does not have any negative effect on health,” stated an FMI analyst.
There are no direct regulations for recycling or use of e-cigarettes, heated-tobacco products (HTPs) or the cellulose acetate filters in combustible cigarettes in the EU, U.S., China and Japan. There is some legislation that regulates the management of e-waste; however, these guidelines typically apply only to cell phones, computers and other large electronic products.
According to the Global Overview of Recycling Programs for E-Cigarettes, Heated-Tobacco Products and Vaporizers Business for 2022 and Future Prospects of Electronic Devices and Consumables Development report by Research and Markets, large vaping industry players have several recycling programs and recycling targets for the near future:
Philip Morris International established two hubs in Europe and Asia that inspect, process and separate materials from electronic devices for recycling. The effective recycling rate of IQOS devices increased from 30 percent in 2018 to 40 percent in 2020. The target recycling rate is 80 percent by 2025.
BAT replaces plastic elements of vapor products with pulp-based alternatives. The share of recycled waste was 79–80 percent in 2019–2021. The target recycling rate is 95 percent by 2025.
Japan Tobacco International launched a return scheme of used devices through the recycling boxes at shops. In 2020, 67 percent of produced waste was recycled. The target for waste reduction is 20 percent by 2030.
Imperial Brands launched takeback recycling schemes for used vaping devices and pods. The recycling rate decreased from 69 percent in 2017 to 61 percent in 2021. The target recycling rate is 75 percent by 2030.
Other vape companies (Dotmod, Shanlaan, Dovpo and Vinn) launch their own recycling programs by return schemes. Innokin works on battery utilization programs.
FEELM, an atomization brand and an independent business unit of Smoore Technology Ltd., won the IF Design Award 2020 for its eco-friendly Disposable Paper E-cigarette. CCELL launched a new line of disposable vaporizers in 2021.
Recycling companies Gaiaca and TerraCycle cooperate with vape manufacturers to provide services for collecting and recycling e-waste. Some vape producers cooperate directly with recycling companies; for example, RELX cooperates with China Siyan Foundation for Poverty Alleviation.
The Bowman Company offers refill stations to fill empty vapor bottles/pods. It will help to reduce plastic usage for vapor bottle production in the future.
It is expected that the future of e-cigarette, HTP and vaporizer recycling will depend on producers’ product life cycle programs. Recycling decisions from large vaping companies to combat waste include using a combination of polylactic acid (PLA) and plastic or starch blend and plastic for the device body; using paper packaging; and making inner packaging consist of paper or paper and PLA.
A survey by Opinium on behalf of Material Focus, a not-for-profit established to help the U.K. meet its electrical reuse and recycling targets, found that 18 percent of 4,000 people surveyed in the U.K. had bought a vape device in the previous year, with 7 percent buying a single-use device.
The Opinium figures would suggest that about 168 million disposable vapes are being bought every year in the U.K. Two of the biggest brands in the country are Elf Bar and Geek Bar, which between them make up about 60 percent of the market.
More than half of people that buy single-use e-cigarettes dispose of them in a general trash bin compared to 33 percent on average for all types of vape, according to the research. While each vape contains just 0.15 g of lithium, the scale of the waste means that about 10 tons of metal is ending up in landfills. – VV staff
Regulating the vaping industry in South Africa is complicated by deception and distraction.
By Asanda Gcoyi
The advent of electronic nicotine-delivery systems (ENDS) and electronic non-nicotine delivery systems (ENNDS) has taken the world of public health policy by surprise, it would seem. Nowhere is this more apparent than in developing and under-developed countries.
Where previously countries with little public health policymaking capacities could rely on the World Health Organization for guidance on tobacco regulation, the deep uncertainties plaguing the WHO on the best way to regulate ENNDS have left many countries unsure how to regulate important innovation in nicotine delivery.
In South Africa, this challenge has proven particularly acute. As a former leader in tobacco control, the country has struggled to institute an ENNDS regulatory framework. In May 2022, it was four years since the government first published the draft Control of Tobacco Products and Electronic Delivery Systems Bill for public comment. The bill updates the country’s longstanding Tobacco Products Control Act, first adopted in 1993.
It does this by introducing more restrictions on tobacco sales and consumption. In a stroke of policy confusion, the bill extends the restrictions imposed on combustible cigarettes to ENNDS. To date, the draft bill has not been approved by the Cabinet for tabling in Parliament, precisely because it is based on misinformation and hubris.
In general, proposals to restrict smoking and make it difficult for nonsmokers to be initiated into the habit are to be welcomed. However, it is entirely misguided to have the prevention of initiation as its sole objective of public health policy in a country with a staggering 8 million smokers out of a population of 60 million.
South Africa does not have the resources to support smokers quitting. Other than a barely functional quit line, the country does not have any smoking cessation programs sponsored by the public health system. Nicotine-replacement therapy is not freely available. There are no counselling facilities.
While the South African government cannot generally be regarded as lacking in policy-making capacity, especially in the area of tobacco control, it can be concluded that shifting narratives about ENNDS have left the government in a difficult position. WHO prevarication on the topic has not helped matters.
Where government could previously rely on the WHO to issue unequivocal policy guidance, the growing impasse between the WHO and members of the public health community in support of ENNDS as a harm reduced alternative to smoking has put government at a loss on how to proceed on ENNDS regulation. Growing scientific evidence challenging the natural inclination of the WHO to castigate behaviors it does not agree with is proving especially challenging.
While the ENNDS industry in South Africa shares government’s concern about a new generation of nicotine consumers, it remains a concern that government proposals to regulate ENNDS do not correlate with the intended outcome of reducing smoking.
As has been demonstrated in places such as the U.K., ENNDS are an efficient tool for moving smokers to potentially less harmful alternatives, with some even deciding to quit. It is a major public health policy opportunity, especially for developing countries such as South Africa, to reduce their costs of public health resulting from noncommunicable diseases associated with smoking.
In the four years that the government has attempted to come up with a regulatory framework for ENNDS, the Vapour Products Association of South Africa (VPASA) has been at the forefront of calling on government to consult beyond its fellow travelers in the anti-tobacco advocacy lobby. Sadly, this has not happened.
Instead, the government has continued to rely on outdated, heavily biased studies to back up its untenable policy positions, including the rightly maligned and withdrawn study by Stanton Glantz, a researcher with the University of California, San Francisco School of Medicine, titled “Electronic Cigarette Use and Myocardial Infarction Among Adults in the U.S. Population Assessment of Tobacco Health,” published by the Journal of the American Heart Association in 2019.
Currently, the government looks set to introduce a tax on vaping products. This is partly justified on the basis of this and other problematic studies, some conducted as long ago as 2014. This happens against the backdrop of new scientific studies demonstrating the likely benefits of adopting ENNDS as part of a broader tobacco control strategy.
Regrettably, South Africa is not alone in embracing such misdirected policies on ENNDS. Whereas there are easy wins on tobacco control, it seems governments across the developing world have resolved to limit the very innovation that promises the most success in weaning smokers off their deadly habit. From Botswana to Kenya to Mauritius, governments in Africa and other parts of the world are resorting to draconian measures to control ENNDS rather than looking closely at the science and embedding this in their regulatory approaches.
Overall, smokers, especially poor ones, are likely to be the biggest losers in the overzealous regulation of the vaping industry. This is a direct result of governments that fail to take into account their duty to listen not only to the views they like but also those they may not necessarily appreciate.
The truth is that even the most rabid anti-ENNDS campaigner accepts that there are major differences between smoking and vaping. As such, it makes sense that governments should differentiate between the two behaviors when putting in place regulatory measures. Such differentiation should favor ENNDS over combustible products. This is not happening in the developing world. Certainly, it is not happening in South Africa. Quite the opposite is being pursued.
Given tobacco’s dominant and entrenched position as the preferred nicotine-delivery system for most nicotine addicts, stringent restrictions against ENNDS disincentivize smokers from switching. Sustained disinformation and outright lies about ENNDS make this worse. Governments complain about the costs of smoking to the public purse yet seek to protect the biggest drivers of such costs by protecting the tobacco industry from the only real alternative to emerge against smoking.
The VPASA will remain committed to the fight against senseless regulation in South Africa. To not do so would be to fail the millions of South African smokers who are desperate for alternatives to tobacco.
Asanda Gcoyi is the CEO of the Vapour Products Association of South Africa.
I’ve been reading a book in which the author, in passing, casts doubt on the theory, invoked by some physicists trying to explain the complexities and contradictions thrown up by quantum physics, that there are an infinite number of universes in which an infinite number of possibilities are played out.
Although I don’t have a clue about quantum physics, I tend to agree with the author, but I am nevertheless holding the door open just in case the infinite universes theory can account for the following heading, appearing on spanishnewstoday.com: “Spanish in favor of banning smoking on bar terraces.” I am fond of odd headings, and the following one, apparently from rnz.co.nz, is interesting: “‘Young vapers consuming more nicotine than a pack-a-day cigarette habit,’ group says.”
Here, “a pack-a-day cigarette habit” is being compared with “young vapers” in respect of the nicotine they consume, but this cannot be right. A habit does not consume nicotine or anything else for that matter. “Habit” is an abstract noun. It is a construct of the imagination and cannot consume a material compound such as nicotine. A habit has no brain, no blood, no anima.
Even if you were able to add a battery to a habit, it wouldn’t keep banging on those meaningless cymbals, and going and going! What the heading wants to say is quite simple to state: Young vapers consume more nicotine than is consumed by pack-a-day cigarette smokers. The new heading has the advantage, too, of getting around the plural/singular problem of the original, where it seems that plural vapers are being compared with the smoking habit of a single person, leading to the observation: well, of course they would.
The confusion let loose by the heading is explained away in the first sentence of the story where the comparison is rightly made between some young vapers and some smokers. But the first sentence also throws up a further problem with the heading. The comparison is not with someone with a pack-a-day cigarette habit but with someone with a pack-and-a-half-a-day cigarette habit. Obviously, the headline writer didn’t want the longer reference, complete with five hyphens, so she or he merely changed the story.
There are times when numbers in headings have to be manipulated somewhat because they are unwieldy, but this is not the case here. It wouldn’t have taken much effort to figure how many cigarettes are in a pack, add half as many again and include the resulting number in the heading for an accurate tally. If there are 20 cigarettes in a pack in New Zealand, the heading could have read, “Some young vapers consume more nicotine than is consumed by 30-a-day cigarette smokers.”
Headings are there partly to draw the reader in, but they should bear a passing resemblance to the story and what it says.
But this, from brisbanetimes.com.au, is probably my most recent favorite heading: “Smoking laws set to get tougher in Queensland amid vaping concerns.” Here, it’s hard to get the connection. It’s like reading a heading that says, “Driving laws set to get tougher in Queensland amid flying concerns.” If you have concerns about flying, surely, the best approach is to address the laws around that mode of transport, not those regulating driving. And similarly, if you have concerns around vaping, you are best off addressing the laws around that habit, not those controlling the habit of smoking.
I’m fascinated, too, with the use of the passive voice giving rise to a lack of agency behind the possible new laws, which are “set to get tougher.” It seems that nobody is making them tougher; they are simply set to get tougher as the result of some natural law, or perhaps because in their universe, that’s the way things happen.
But the worst aspect of the heading, in my view, is the reference to vaping because, outside of the heading, vaping is not mentioned in the nearly 500-word story. In fact, there are only three mentions of e-cigarettes, the first nearly two-thirds of the way through the piece. And astonishingly, whereas the heading references both smoking and vaping, the story starts off with “Drinking could be banned ….”
This is a story about an idea put out by Queensland Health (QH) for public discussion—an idea that seems to favor complexity over simplicity. The first sentence has it “Drinking could be banned in the dedicated outdoor smoking areas [DOSAs] of pubs, clubs and casinos in an attempt to compel more Queenslanders to quit cigarettes.” It seems to be an attempt by QH to promote drinking as being an OK habit but to cast people who smoke while drinking as being somehow beyond the pale.
The second sentence says DOSAs could be moved farther away from other patrons and young people banned from mingling with adult smokers. This is a strange concept given that it seems to suggest that DOSAs are patrons and given that the plan seems to be to move DOSAs away from actual patrons as if patrons were fixed objects. But the worst aspect of it is the idea that young people should not mingle with adult smokers.
My bet would be that the risk posed to young people of being close to smokers is very low compared with the risk of their being close to drinkers, especially drunks, and each drinker is a potential drunk. Not convinced? Well, let me ask a question. Given that you had no choice but to leave a young person in the care of somebody who you didn’t know well, would you sooner leave the young person in the care of somebody who had been smoking or in the care of somebody who had been drinking?
QH is fretting and obsessing about secondhand smoke. It says 946,000 Queenslanders, more than half of them nonsmokers, “spent time” in a DOSA during 2018. I suppose we are supposed to gasp in horror, and certainly there is one worrying aspect to this figure. Since 946,000 is about a fifth of the state’s population, and since one has to assume many more people went to drinking holes without going into a DOSA, you have to conclude that Queensland might have a drinking problem.
There is, however, one positive to come out of this. More than 473,000 nonsmoking drinkers in Queensland have the good sense to realize that they are not going to be permanently harmed by visiting a DOSA. Perhaps they have figured out that they are exposing themselves to far greater risk by sitting outside a drinking hole near a road. Around the world, more people die from the effects of outdoor air pollution than die from the effects of both primary and secondary tobacco smoke.
So why is QH attacking tobacco smoking but not pollution? I don’t know the answer, but it might have something to do with the fact that pollution is invisible to the naked eye, while smoke—along with vapor—is easy to spot. It is also the case, of course, that smoking—along with vaping—is a minority activity while polluting is a habit everybody seems to enjoy.
There is one hearteningly honest aspect to what QH is up to. The story states that QH’s aim is “to compel more Queenslanders to quit cigarettes.” QH, according to the story, is not beating about the bush as many anti-smoking organizations do by claiming to be attempting to “encourage” smokers to quit. It has a mission to compel. To compel smokers to quit, and, of course, to compel nonsmokers not to mix with smoker outcasts in the hallowed halls of the state’s drinking holes. What next, I wonder? Perhaps the aim will be to bludgeon smokers into quitting, perhaps even torturing them.
But this magazine is about vaping, so let me move onto the last piece of the story, where e-cigarettes get a walk-on part. QH is apparently considering a licensing system for the “suppliers, wholesalers and retailers of smoking products, including e-cigarettes” that would allow those licences to be revoked for “serious breaches.”
Note the way that e-cigarettes are deemed, without even mentioning it, to be smoking products. This is what occurs, I suppose, in another of those multiple universes, also much loved by the U.S. Food and Drug Administration—a magical place where smoke is considered, scientifically, to be the same as vapor.
E-cigarettes are described by QH as being not a vehicle for shifting smokers away from their habit but as one of a number of “new challenges which threaten to erode success in reducing the negative effects of smoking.” “E-cigarettes have emerged to broaden the smoking product market and are promoted as less harmful, contained in attractive packaging and supplied in an array of interesting flavors,” QH is quoted as saying.
Here, to my way of thinking, QH loses the plot completely. E-cigarettes didn’t passively emerge; they were developed by responsible people who realized that existing efforts to help people stop smoking were failing and that this new vaping device could be more effective.
Everything about QHs statements on e-cigarettes seems designed to denigrate the product. The fact that they are offered in interesting flavors and contained in attractive packaging is made to seem negative. Note to QH If you want people to quit smoking, you need to make your offer interesting and attractive. Making smokers appear to be outcasts fails horribly because outcasts, by definition, are not bound by societal norms.
Then, we have the great finale. “While evidence on the safety and efficacy of these products continues to develop, there is now sufficient data that e-cigarettes are not without harms to health and that they pose a significant risk for creating a new generation of Queenslanders for whom smoking and regular nicotine use is normal,” QH is quoted as saying.
The “evidence” that is continuing to emerge on e-cigarettes—again, apparently without agency—is not stated in the story because, I assume, it is hugely in favor of the efficacy of e-cigarettes. What we get instead is a statement about how there is sufficient data that e-cigarettes are not without harms. Again, this is all over the place. What QH is saying is that the use of e-cigarettes is not risk-free. Well of course it isn’t. Nothing is risk-free. But what QH is trying to imply, without presenting any evidence, is that the use of e-cigarettes is riskier than anyone could possibly know.
QH might be right, however, in saying e-cigarettes could eventually regularize the use of nicotine, but then people do use recreational drugs, and vaping has to be a whole lot better for you than smoking cigarettes or drinking alcohol.
I’m sorry, but I cannot resist one last dig. The following sentence opened a recent neweurope.eu story: “The European Commission announced that the proposal for the revised tobacco excise directive will be made public at the beginning of 2022’s fourth quarter during a digital consultation session that was held on May 18, with the participation of commission officials and other interested parties such as retailers, associations, representatives of scientific and medical associations as well as representatives of the tobacco industry.”
What I like about this overlong sentence and the universe in which it works is that time is so fluid. Perhaps those quantum physicists would see it as existing or not in Schrodinger’s box. But to make it work on this planet of the known universe, you would have to rework it as something like, “The European Commission announced during a digital consultation session held on May 18 that the proposal for the revised tobacco excise directive would be made public at the beginning of 2022’s fourth quarter ….”
Last year was a difficult one for vapor companies as regulation, taxation and flavor bans made their impact on the industry.
By VV staff
On Sept. 9, 2020, e-cigarette manufacturers needed to have submitted premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration to keep their electronic nicotine-delivery system (ENDS) products on the market. Going into 2021, many applicants hoped to receive marketing approval orders. That didn’t work out. Instead, the FDA rejected the vast majority of applications—many of them for excluding studies that the agency didn’t appear to require at the start of the process.
By Dec. 31, 2021, the FDA had issued marketing denial orders (MDOs) for most of the more than 6.5 million PMTAs submitted by 500 companies. Only an estimated 80,000 products remain under review and, as of press time, only the Vuse Solo and two tobacco-flavored Solo pods have received a marketing approval order. Many of the applications still under review are “ones submitted by the companies with the largest market shares because they tend to be the largest and most complex applications,” according to Mitch Zeller, head of the FDA’s Center for Tobacco Products (CTP).
The U.S. Postal Service (USPS) banned the mailing of vapor products in 2021, and Congress started debating a federal nicotine tax, which at press time had been removed from the legislation. Last year, many MDO recipients had those orders stayed by a court or rescinded by the FDA. Withdrawn products returned to market, leaving retailers confused. Misinformation about vaping was widespread throughout the year. Synthetic nicotine and disposable vape pens began to dominate sales and several new cannabinoids came to market. Let’s look back at the top stories of 2021.
January
Beverly Hills and Manhattan Beach, both in the Los Angeles area, began to enforce a ban on vapor products, the strictest vaping rules in the U.S.
Shares in Chinese e-cigarette maker RLX Technology, parent to the RELX brand, jumped 146 percent in their trading debut after raising $1.4 billion in its U.S. initial public offering.
Following the enactment of smoke-free laws in Paraguay, every South American country banned vaping and smoking in most public places.
The FDA sent its first warning letters to manufacturers of ENDS products that did not submit PMTAs by the Sept. 9, 2020, deadline.
February
Turning Point Brands announced a proposed private offering of $250 million aggregate principal amount of its senior secured notes due 2026.
The public comment period began for the U.S. Postal Service’s ENDS mailing rules. R.J. Reynolds Vapor Co.’s (RJRV) Vuse Alto began selling nationally in the U.S.
Utah Senator Mitt Romney pushed for flavored vaping products to be pulled from shelves across the United States.
March
The World Health Organization study group on Tobacco Product Regulations recommended prohibiting open systems.
The litigants in two lawsuits challenging the constitutionality of the FDA’s Deeming Rule for vapor products, Big Time Vapes and Moose Jooce, asked the Supreme Court of the United States (SCOTUS) to take up their cases.
The Preventing Online Sales of E-Cigarettes to Children (PACT) Act forced many companies to end online sales to U.S. customers. Many went out of business altogether because of the new rules.
China announced its intent to overhaul rules governing the ENDS market. The news caused a steep drop in the value of RLX Technology shares, from which the company has yet to recover.
April
Virginia became the 16th state and first southern U.S. state to legalize the possession of small amounts of marijuana.
Charlie’s Holdings, parent to the Charlie’s Chalk Dust and Pacha Mama brands, raised $3 million in a private stock sale.
American TV personality Phillip Calvin McGraw, also known as Dr. Phil, wrongly blamed the e-cigarette or vaping use-associated lung injury (EVALI) lung illness outbreak on vaping nicotine products. The USPS published its guidance for mailing vaping products in the Federal Register.
The FDA stated its intent to ban menthol as a characterizing flavor in cigarettes, saying it would exclude e-liquids.
May
An estimated 3,000 people visited the Tobacco Plus Expo (TPE) on the opening day of the three-day event, the first vapor trade show since the pandemic began.
The WHO reasserted its abstinence-only approach to nicotine. The U.S. International Trade Commission (ITC) ruled that Philip Morris International’s IQOS device infringes on two patents owned by BAT subsidiary Reynolds American Inc.
Meanwhile, a judge ruled that RJRV’s Vuse Solo and Ciro e-cigarettes infringe patents owned by Fuma International. Joining a growing number of U.S. states, New York expressly prohibited Delta-8 THC and other THC isomers derived from hemp.
The FDA published a list of ENDS products that could be legally marketed in the U.S.
June
Poda Holdings launched its “zero cleaning” heat-not-burn (HnB) product after six years of development. SCOTUS denied Big Time Vapes and Moose Joose a request for a writ of certiorari. The German Bundestag signed off on a bill to raise taxes on combustible cigarettes, e-cigarettes and HnB tobacco products.
An investor filed a class action suit against RLX Technology, claiming the manufacturer overstated its financials and misrepresented potential regulatory risks when it filed its IPO. San Francisco, Connecticut, Washington, D.C., Los Angeles and Canada proposed or enacted flavor bans.
A study in the U.K. gave homeless people free e-cigarette starter packs. North Carolina settled its lawsuit with Juul Labs for $40 million.
July
Vaporesso and FEELM parent, Smoore International Holdings, was the only vaping technology company to make the Forbes 2021 Global 2000 list.
Australia set maximum fines of up to aus11 million ($8.2 million) for businesses caught selling illegal nicotine vaping products.
The FDA was accused of issuing unwarranted warning letters and leaving companies off of its list of accepted PMTAs. The agency was also criticized for using poorly functioning PMTA filing software.
Juul Labs paid $51,000 to buy an entire issue of the American Journal of Health Behavior to publish its own vapor studies and make it publicly available. The town of Brookline, Massachusetts, prohibited the sale of all tobacco-related products to anybody born after Jan. 1, 2000. The Chinese vaping company Aspire Global announced terms for its U.S. IPO—which didn’t happen.
The Federal Bureau of Investigation and the Drug Enforcement Administration raided the cannabis culture and accessories trade show, CHAMPS, because vendors were giving unauthorized Delta-8 THC product samples. Bidi Vapor parent, Kaival Brands, began trading on the NASDAQ.
August
The FDA issued a Refuse to File letter to the JD Nova Group for its estimated 4.5 million PMTAs, which accounted for approximately two-thirds of the total number of PMTA submissions.
Smok Parent, IVP Technology, considered a Hong Kong IPO—which didn’t happen. The FDA issued the first MDOs covering more than 55,000 products.
A study found that, contrary to what earlier studies suggested, vaping products are not associated with increased heart attack incidence among people without a history of smoking combustible cigarettes.
September
As the PMTA deadline approached, the FDA asked for more time before deciding whether some “e-cigarettes from market leader Juul Labs” and others are appropriate for the protection of public health. Numerous companies received MDOs from the FDA the night before the deadline.
Vuse became the No. 1 global vaping brand by value share. No product got marketing orders on the court-imposed Sept. 9 deadline; instead, the FDA issued MDOs to more than 130 small companies, including Turning Point Brands, requiring companies to pull an estimated 946,000 products from the market.
Congress proposed the U.S. Tobacco Tax Equity (TTE) Act, which would tax vaping products the same as combustible cigarettes. The legislation later gets attached to the Build Back Better (BBB) Act. The FDA released its annual National Youth Tobacco Survey (NYTS) showing that youth use of e-cigarettes fell sharply in 2021, the second consecutive year of major declines.
The FDA said the 2021 NYTS can’t be compared to previous years because Covid-19 caused schools to close and altered testing procedures.
October
Zanoprima Lifesciences announced the commercial production of its SyNic brand of synthetic (S)-nicotine. Turning Point Brands had its MDO rescinded by the FDA because the company did in fact submit newly required studies.
The FDA’s Fatal Flaw review process was revealed after court documents were released. After more than six months, the USPS finally posted for public inspection its rules for mailing e-cigarettes in the Federal Register.
The FDA gave the first ENDS marketing approval to RJRV’s Vuse Solo device and two tobacco-flavored pods, which are widely regarded as antique products compared to current vaping offerings.
The FDA authorized the marketing of four oral tobacco products that are no longer on the market. Ten MDOs were rescinded or stayed by the FDA or in court.
November
More details surfaced surrounding the Fatal Flaw review, a simple review in which the reviewer examines the submission to identify whether it contains the necessary types of studies. “The Fatal Flaw review will be limited to determining presence or absence of such studies; it will not evaluate the merits of the studies,” an FDA memorandum states.
Previously proposed nicotine/vapor tax increases were removed from the BBB Act.
The Conference of the Parties to the WHO Framework Convention for Tobacco Control held its ninth session, this time virtually.
The nicotine tax resurfaced in the BBB Act. RJRV settled its Fuma lawsuit two days before the trial was set to start.
Biden nominated former FDA chief Robert Califf to again lead agency.
December
Draft rules governing e-cigarettes and vapor products were issued by China’s tobacco regulator.
The nicotine tax was again removed from the BBB Act.
The U.S. Trade Representative upheld the ITC’s finding that Philip Morris International’s IQOS infringes on BAT patents and Altria ended all U.S. sales.
The Spanish government took control the country’s sales and distribution of vaping products.
CTP Director Mitch Zeller announced plans to retire from the CTP in April.
Once the largest chain of vape shops, Avail Vapor sold the majority of its retail locations and closed its remaining stores.
Turning Point Brands received a USPS exemption for its VaporBeast subsidiary’s vape mail.
The FDA authorized the marketing of 22nd Century Group’s low-nicotine, combustible filtered cigarettes as modified-risk tobacco products.
Looking ahead
The outlook for 2022 is vague at best for vapor. The FDA has a new director, and Zeller is retiring from the CTP, and things can change quickly under new leadership. It’s expected that the FDA will make decisions on the major ENDS brands at some point in the year, and there are still an estimated 44 lawsuits pending over the issuing of MDOs. The industry has already seen numerous vapor-related businesses close, consolidate or be bought out by larger competitors. Experts say that much of the same can be expected in 2022.
“With the announcement of Zeller stepping down, I think we will continue to see vastly extended approval times for the majority of vapor products still being evaluated by the FDA, especially with open litigation covering many of these products,” said Josh Church, managing director of Roots Holding. “The products that do make it through the approval process will be high-value SKUs to large tobacco product manufacturers and will likely either be bought outright or there will be some agreement in equity share to utilize tobacco’s historic distribution network.”
Last year left a lot of questions that the industry still needs answers to in 2022. There also probably won’t be many major changes in the vapor market other than continued sales growth in 2022, according to Church. “I think we can all agree that 2021 was a rough year. I believe that this year, we will observe the run out of the mail ban—effects of the PACT Act—on ecommerce,” he said. “That will come alongside continued brick-and-mortar business closures for those who don’t diversify their product offerings. I wouldn’t say 2022 is going to be worse than 2021, but I don’t expect it to change very much either.”
The long roller coaster ride for the vapor industry will likely continue for the foreseeable future.
By Chris Howard and Rich Hill
It’s been a long and arduous journey since the finalization of the Deeming Rule in 2016. As most of you will recall, this was the moment when we transitioned from operating in an unregulated market to plowing forward under a complicated and onerous regulatory scheme in the blink of an eye. Shortly thereafter, the U.S. Food and Drug Administration announced a renewed prioritization of harm reduction and proclaimed that vapor could play a leading role in that effort.
Then, as quickly as a bright future for harm reduction blossomed, the lights dimmed, and vapor became the villain in the harm reduction story overnight. In addition to paralyzing propaganda and misplaced demonization by activist groups throughout the U.S., the industry also faced an onslaught of crippling requirements associated with a 10-month window to submit premarket tobacco product applications (PMTAs). Costing millions of dollars, 99 percent of the PMTAs ultimately submitted to the FDA’s Center for Tobacco Products (CTP) were summarily rejected based upon a standard, akin to a clinical cessation trial, that none in the industry expected.
As of the date of this writing, some of the largest players in the e-liquid space have closed their doors or have moved into yet another risky proposition—synthetic nicotine. Despite the setbacks over the past several years, many still believe reports of vapor’s death as a harm reduction tool are greatly exaggerated. Notwithstanding this cautious optimism, it is clear that 2022 is going to be yet another difficult year for the vapor category.
Current state as we enter 2022
As we enter 2022, much of the flavored e-liquid market is gone and may never return. While we have seen marketing orders for first-generation e-cigarettes and tobacco disks that are no longer marketed, we have not seen marketing orders for any modern electronic nicotine-delivery system (ENDS) or oral nicotine products. We have seen a marketing order for a combustible low-nicotine cigarette, along with a reduced exposure order for the same. While litigation continues around the rejected PMTAs, the FDA still lacks a commissioner, and we have no knowledge of who will replace retiring CTP Director Mitch Zeller. Most importantly, other than removing flavors from the market, we have no clear understanding of the FDA’s harm reduction strategy.
Predicting the future in 2022
PMTAs. Few question the fact that the CTP was given a Herculean task by the Maryland federal court. Processing, let alone reviewing, 6.5 million PMTAs in a year was unquestionably an impossible requirement. Candidly, the fact that the CTP was able to get the majority through acceptance and filing was a significant achievement. Of course, for most reading this, the outcome was obviously disappointing as nearly all requests for marketing orders for flavored ENDS products were rejected in late 2021. As the various challenges to the marketing denial orders play out over the next year, many hold out hope that the CTP will be found to have violated the Administrative Procedures Act and/or acted arbitrarily or capriciously in its decision-making process.
With respect to those applications that remain pending with the CTP (primarily tobacco and menthol flavors, pod systems and disposable devices), we believe the FDA will issue marketing orders for several tobacco-flavored pods and disposable e-cigarettes in 2022. Assuming the remaining applications otherwise meet the statutory standards, there is little reason for the CTP to deny applications for tobacco-flavored pods, e-liquids and disposables given the evidence that such products are not particularly attractive to youth. That said, we question whether any action will occur before the new FDA commissioner and CTP director are in place and have an opportunity to address policy concerns.
As for menthol offerings, we anticipate that the FDA will not act until the proposed product standard banning menthol is released. It was interesting to note that a menthol-flavored combustible cigarette with lower nicotine levels was granted an exposure modification order. The CTP’s action may indicate a desire to provide “off-ramps” for combustible menthol cigarette smokers in a world where menthol cigarettes are potentially banned. Ideally, the CTP will grant marketing orders for menthol-flavored ENDS to provide an alternative product for current menthol cigarette smokers. This would provide a potential cessation or maintenance product to the millions of menthol smokers in the U.S.—thus reducing the risk of the formation of black and gray market activities.
Finally, marketing orders for flavored ENDS products seem unlikely in 2022. If the clinical cessation trial/longitudinal cohort study requirement proves to be administratively appropriate, it would seem difficult, if not impossible, that any flavored product will even make it to the review phase with such data for six months to 12 months at a minimum. Even then, it is an open question as to how much and what kind of data will be deemed to be sufficient by the CTP. We see a world where flavored ENDS are once again marketed, but it seems unlikely to occur in the near future.
Product standards. We have all heard that the CTP intends to issue draft product standards banning both menthol in cigarettes and flavored cigars by April of this year. These purported product standards, along with the recent marketing orders granted for lower nicotine combustible cigarettes, are telling with where the focus of the FDA’s policy stands. The standards appear to demonstrate an agency bent on removing any flavors from combustible tobacco products unless those products cannot create or sustain addiction. We can be assured that the product standards will face a blizzard of regulatory and legal challenges and will likely take many years to implement.
Synthetic nicotine. A few months ago, synthetic nicotine seemed like the last bastion of flavored ENDS products in the marketplace. While these products currently do not have a regulatory home, we fully expect that the existing legislative efforts will ultimately provide the CTP the authority to regulate synthetic nicotine. Once granted, all regulatory requirements for deemed tobacco products will apply, such as PMTAs. In the unlikely event Congress does not successfully provide such authority, we expect state legislatures to address the issue with prohibitive laws banning synthetic nicotine.
FDA administration. One wildcard in the mix is the turnover in key personnel at the FDA. In his largely collegial confirmation hearing, the commissioner nominee, Robert Califf, stated that his top two priorities upon confirmation were not tobacco related. Rather, he intends to focus on (a) emergency preparedness and response and (b) patient and consumer protection through “systematic evidence generation” related to medical and food products. While he faced few questions on tobacco-related issues, many skeptics believe his views toward tobacco products are similar to the current administration. Whether he will take a proactive stance toward prioritizing harm reduction is unknown.
Unfortunately, Zeller’s retirement removes a harm reduction proponent. What can we expect in a replacement? In short, the most likely replacement will be a candidate who has solid tobacco control chops and is aligned with the current policy flow against flavored products. We don’t expect to see any novel tobacco control or harm reduction policies (akin to former FDA commissioner Scott Gottlieb’s approach in 2018).
The roller coaster ride continues
Unfortunately, it appears that the long roller coaster ride for the vapor industry will continue for the foreseeable future. The good news, if you can call it that, is that the Biden administration has a variety of nontobacco-related issues to address—particularly up to the mid-term elections—which could lessen the likelihood of additional draconian polices imposed on the industry. At this point, it appears that 2022 will be about waiting—waiting for court decisions, waiting for policymakers and waiting for policy decisions.
We won’t be so naive as to say that things can’t get worse in 2022. That said, if you have made it this far, now certainly doesn’t seem like the time to give up.
Chris Howard is vice president, general counsel and chief compliance officer, and Rich Hill is compliance director and associate general counsel of E-Alternative Solutions, an independent, family-owned innovator of consumer-centric brands.
TMA’s webinar brings industry experts together to share their insights into the rapidly changing nicotine business.
Vapor Voice staff report
The nicotine industry has been struggling to keep up with the growing number of challenges to its existence. From potential new taxes to marketing denial orders (MDOs), mailing restrictions, misinformation and the rise of synthetic products, the ever-changing regulatory landscape has forced millions of products off the market and hundreds of businesses to close.
During TMA’s “From Chance to Change” webinar, held Nov. 17–18, several industry experts discussed the current state of the nicotine industry and what it may look like moving forward. Attendees were updated by the U.S. Food and Drug Administration on its progress on premarket tobacco product applications (PMTAs) as well as the confusion surrounding the issuing of MDOs and why some of those orders have either been rescinded or stayed by a court.
Speakers explained how a proposed tax bill, misinformation being spread by anti-vaping groups and the media, and the growing number of manufacturers moving toward synthetic nicotine is creating confusion for consumers and business owners alike. Some speakers even suggested that if the current pace continues, many former smokers will return to more deadly combustible cigarettes.
FDA Update: Mitch Zeller, director of the FDA’s Center for Tobacco Products
TMA’s webinar began with a bang. Mitch Zeller, director of the FDA’s Center for Tobacco Products (CTP) outlined the progress of the agency’s review of PMTAs that were submitted by the Sept. 9, 2020, deadline. Zeller also provided an unprecedented behind-the-scenes peek into the center as it processed millions of PMTAs.
After a court order that was the result of a lawsuit brought by several anti-vaping groups, the FDA was ordered to complete applications within one year of the deadline. Because companies were not required to submit their applications in a particular way, the agency had to be ready to process for a wide variety of formats. “We had to prepare operationally, technically and logistically to ‘ingest’ all those applications,” said Zeller, adding that the agency was thrilled its submission system did not collapse under the volume of last-minute applications.
“We had to prepare substantively for how the scientific review was going to be conducted for a category of products that previously had not had to submit applications to us,” said Zeller. “The preparation for both the operational and the substantive was daunting.”
The FDA has by now acted on the vast majority of applications, sending refuse to file letters, issuing MDOs or, in the case of Vuse Solo, granting marketing orders. “We are down to 80,000 products—most of them in the final stages of review,” said Zeller. Those still-pending applications, he acknowledged, include ones submitted by the companies with the largest market shares because they tend to be the largest and most complex applications.
Zeller said the agency has a particular concern for flavored electronic nicotine-delivery system (ENDS) products, other than tobacco, because “we know that they pose a known and significant risk” when it comes to appeal, popularity, uptake and use by youth. He says that youth who are using ENDS products are more likely to use a flavored product than adults. “A company that wants to be able to continue to market a flavored ENDS product is going to have to have robust and reliable evidence that shows that the potential benefits of that product for adult smokers would outweigh the significant risks that are built in when it comes to kids,” Zeller said. “The benefit-risk equation for tobacco-flavored products is different. It raises a different set of considerations because we don’t have the same built-in concern on the front end about the popularity of tobacco-flavored ENDS products with kids.”
Zeller also addressed the fast-growing synthetic nicotine segment. He said synthetic nicotine could be considered a component of e-cigarettes, which would allow the FDA to regulate the product. Additionally, he said the agency was concerned about the use of synthetic nicotine to avoid regulation and enforcement and is considering its options in dealing with the issue.
The Tobacco Control Act defines a tobacco product as anything that’s “made or derived from tobacco that is intended for human consumption, including any component, part or accessory of a tobacco product.” Zeller said that components and parts could include everything from coils and batteries to all the ingredients comprised in producing e-liquids (such as flavorings and vegetable glycerin) even if the product does not contain nicotine.
“That’s an assessment that we need to make on a case-by-case basis based upon the totality of all the information that we have,” said Zeller. Another challenge, he said, is that synthetic nicotine is now of such high quality that it has become difficult to differentiate it from nicotine derived from natural tobacco. “Historically, that hasn’t been a problem,” he said. “It’s not a problem now, but it could become a challenge for us going forward.”
Zeller explained that nicotine is comprised of two isomers: R and S. Tobacco-derived nicotine is 99 percent S, and early synthetic nicotine had a 50-50 split between R isomers and S isomers. However, newer versions of synthetic nicotine have much higher proportions of S isomers (as high as 99.9 percent pure), making it harder to tell them apart from natural nicotine. Tobacco-derived nicotine is also becoming higher in quality.
“Tobacco-derived nicotine is now being made available at a higher quality … pharmaceutical grade from a purity standpoint. And with that, it may be harder for us to see that chemical fingerprint, if you will, whether it’s tobacco DNA or tobacco-specific nitrosamines,” he said. “We could see this as a problem going forward. Coupled with the clear intent of certain companies to do this to evade FDA regulation … We are concerned about what this means for product regulation, for the public health, and a product like Puff Bar proudly proclaiming its use of synthetic nicotine, [and] being the No. 1 brand used by youth.”
In the short term, Zeller said the FDA is talking internally about how to best address the growing number of products that are using synthetic nicotine to skirt FDA regulation. He said the agency is also responding to questions from Congress about synthetic nicotine and providing technical assistance to members when asked.
“There are a lot of companies out there that pride themselves on playing by the rules. They have every right to expect that the playing field is going to be level. That’s where we come in with our compliance and enforcement authorities,” Zeller said. “We agree that one of the most important things that we can do, using our compliance and enforcement tools, is to level the playing field and to have our actions [in the synthetic nicotine space], hopefully, serve as a deterrent. There’s nothing that I can say from a compliance enforcement standpoint on synthetic nicotine other than we have ongoing investigations.”
Zeller also explained that the agency is now facing 45 open lawsuits (as of this writing) by companies that had received MDOs. The lawsuits are based on how the agency reviewed PMTA data and adding a new requirement for longitudinal and cohort studies. Zeller said the agency must work to make “whatever decisions come out” be the right decisions. “Whether it be a marketing denial order that could lead to a lawsuit from a company or a marketing granted order that could conceivably lead to a lawsuit from another sector,” he said. “Our review continues while we are dealing with all the lawsuits that have been filed.”
Panel One: An Applicant’s Perspective
The first panel discussion of TMA’s online seminar, moderated by Jim Solyst, principal of JMS Scientific Engagement, debated the status quo of PMTAs from an applicant’s perspective. The panelists included Brittani Cushman, senior vice president, general counsel and secretary at Turning Point Brands; Beth Oliva, partner at Fox Rothschild; Brian Erkkila, director of regulatory science at Swedish Match; and John Pritchard, vice president of regulatory science at 22nd Century Group.
While all participants expressed appreciation for the FDA’s daunting workload, some voiced disappointment with the fact that many applications appear to have received only a perfunctory “Fatal Flaw” review. The panelists were disturbed by the findings that the agency, rather than reviewing a submission on its merits, simply searched for the presence or absence of certain studies.
Cushman said that the “idea that so many of the applications were reviewed with an eye toward this so-called Fatal Flaw analysis” didn’t “feel like the right direction” for the PMTA review process.
The FDA admitted it made an error in TPB’s PMTA review, and TPB did, in fact, submit studies that the agency decided during the PMTA process were needed after saying for years that the studies were not required. The FDA then rescinded TPB’s MDO and placed its applications back into substantive review. The agency has since rescinded MDOs for 10 companies and is currently facing at least 45 lawsuits for its handling of the PMTA process.
“The way the review process has played out this far, really, feels like the incentive structure in the nicotine industry has been placed on its head. It seems that the lower risk products are receiving heightened scrutiny, kind of an opaque direction as to what’s sufficient,” explained Cushman. “And it just doesn’t feel like these products are getting a kind of equitable treatment in the space.”
The term Fatal Flaw has been at the center of nearly all lawsuits filed against the FDA for its handling of the PMTA process. Court records submitted in the Triton Distribution v. U.S. FDA case and reviewed by Vapor Voice suggest the agency did not fully review all PMTA data submitted, as required by law, but instead only looked for specific studies relating to flavors and youth use.
A memo dated July 9, 2021, written by Anne Radway, the associate director of the FDA’s Center for Tobacco Products’ Office of Science, states that “based on the information available to date, FDA has determined this evaluation requires evidence that can demonstrate whether an applicant’s new nontobacco-flavored product(s) will provide an incremental benefit to adult smokers relative to the applicant’s tobacco-flavored product(s). In particular, the evidence necessary for this evaluation would be provided by either a randomized controlled trial (RCT) or a longitudinal cohort study. The absence of these types of studies is considered a Fatal Flaw, meaning any application lacking this evidence will likely receive a marketing denial order.”
Radway goes on to explain that due to the large number of PMTAs received, the agency would only conduct a Fatal Flaw review of PMTAs for nontobacco-flavored ENDS products. “The Fatal Flaw review is a simple review in which the reviewer examines the submission to identify whether or not it contains the necessary type of studies. The Fatal Flaw review will be limited to determining presence or absence of such studies; it will not evaluate the merits of the studies,” Radway states. “To decrease the number of PMTAs without final action by Sept. 9, 2021, OS used a database query to identify the top twelve manufacturers with the largest number of pending PMTAs [in the substantive review stage of the process] … Following completion of filing those applications that are filed will immediately initiate Fatal Flaw review.”
Radway also states that for the remaining PMTAs not in [substantive review] for nontobacco-flavored e-liquid products, the FDA will send a “General Correspondence letter requesting the applicant to confirm if their PMTA contains such evidence and, if so, to direct FDA to the location in the application where the studies can be found.”
The 5th Circuit Court of Appeals stayed Triton Distribution’s MDO, reasoning that Triton’s legal challenge is likely to succeed on its merits because the FDA “changed its regulatory requirements throughout the process.” The “switcheroo” to now require a randomized controlled trial and/or a longitudinal cohort study—which the agency previously stated on numerous occasions would not be required—is arbitrary and capricious under the Administrative Procedure Act, according to the court. Its ruling stated that the FDA failed to “reasonably consider the relevant issues and reasonably explain” the MDO.
The court further noted that the FDA failed to consider Triton’s marketing plan, surveys and evidence of potential benefits of flavored e-cigarettes. The FDA also failed to consider the company’s legitimate reliance interests as Triton relied on the FDA’s statements made in numerous public meetings, guidance documents and rulemakings that it did not expect applicants would need to conduct long-term studies to support their PMTAs.
Cushman told the TMA webinar audience that, at the end of the day, the FDA’s regulatory treatment of the various product categories is to the detriment of the adult smoker. “We’re all down in the weeds of this. But it’s difficult to see how we ended up at this point. And it certainly can’t be where anyone wanted this process to play out,” she said. “I think this has led to a lot of detrimental outcomes. You have adults seeing a large number of vapor products being deemed as not appropriate for the protection of public health while seeing no change in [combustible] cigarette offerings in their local c-store … This is being celebrated not only by those who are ignorant to the science, but more perversely, those [who understand the science and should] know better.”
To date, the agency has authorized the marketing of only one vapor product—Vuse Solo, a little-used e-cigarette brand that many consider outdated. Panelists worried about how the public would interpret the lack of determinations on major applications by the agency, citing persistent misunderstanding of reduced-risk products and the continuum of risk by legislators, journalists and even physicians.
“I think there are a whole host of negative outcomes that seem to be quickly heading our way if we don’t all kind of shift the way this process is going,” a panelist said. “The way the review process has played out this far, really, feels like the incentive structure in the nicotine industry has been placed on its head. It seems that the lower risk products are receiving heightened scrutiny, kind of an opaque direction as to what’s sufficient. And it just doesn’t feel like these products are getting a kind of equitable treatment in the space.”
Another panelist suggested the industry should consider what it would do when the next e-cigarette or vaping use-associated lung injury (EVALI) happens, referring to a mysterious outbreak of lung injuries in 2019 that was caused by illicit THC products but tainted the entire industry. Another participant stressed the importance of enforcement after all marketing applications have been decided. If any “yahoo” can sell products without authorization, she said, it would render the investments by the good actors worthless.
Panel 2: The Market Perspective
The second panel of the TMA webinar, moderated by Mary Szarmach, senior vice president of governmental and external affairs at Smoker Friendly, reviewed the market from a retailers’ perspective. The panelists included Don Burke, senior vice president of Management Science Associates; Tom Briant, executive director and legal counsel at the National Association of Tobacco Outlets; and Amanda Wheeler, president of the American Vapor Manufacturers Association.
Burke sketched the latest trends in the nicotine market. The pandemic, he said, makes comparisons with 2020 difficult. With many people working from home last year, sales of cigarettes and large cigars experienced unusual growth, but as people returned to the office in 2021, those trends are starting to level off or are even reversing as vapor sales rise.
One of the biggest trends is that during the pandemic, according to Szarmach, consumers that were vaping went back to combustibles because they could use them more frequently at home. “We expect as we looked at our projection for vape that that would change back,” she said. “That as people returned to work and had more workplace restrictions … those people that used to vape would likely go back to vape.”
MSA data supports her observation. After declines in 2019 and 2020, the vapor industry has grown 10 percent to 15 percent in 2021, and Burke expects the industry to continue its growth into 2022. “Vapor cartridges were up by 18.5 percent. But we’ll tell you this: [Through] 2019 going into 2020, we were seeing some declines in vapor. One of the things to keep in mind is at the end of 2019 was that illegal THC vaping [EVALI] crisis,” said Burke. “That turned a lot of people off of vapor even though it was only an illegal product that caused the issues. No legitimate product caused any problems. It’s about a year and a half now since that occurred … because of that, consumers are starting to forget, vapor is coming back.”
Burke said sales of disposables, which are allowed to contain flavors, were up 28.9 percent, and all-in-one kits are growing. He said vape shop and tobacco outlet sales are also on the rise after many closed or limited hours due to the Covid pandemic. MSA’s research covers approximately 300,000 stores.
“We’re looking at distributor to shipment retail data. In many cases, that’s important because a lot of the convenience stores and some tobacco outlets do not collect their data and therefore it’s very difficult to get a clean read,” he said. “The convenience channel—because they were considered essential businesses in most parts of the U.S.—managed to survive the pandemic and, in fact, now are a larger percentage of stores in the U.S. Also, 71 percent of tobacco volume goes through convenience stores.”
Burke said pods for closed pod systems (cartridges) were up 6 percent in the most recent quarter. He said that during the third quarter of 2021, disposables continued to have strong sales, rising by 21 percent, and he expects those trends to continue. Burke also said cannabis sales grew significantly during 2020 and into 2021, but he didn’t elaborate.
Briant provided a regulatory update, touching on the proposed nicotine tax hike in the Biden administration’s Build Back Better legislation, the FDA’s proposal to ban menthol in cigarettes and flavors in cigars and the status of graphic health warnings, which are currently being challenged in court. Litigation has pushed the implementation date to January 2023, and this could be further extended. Briant noted that there have been no hearings yet on the merits of graphic health warnings.
Asked to analyze vapor retailers’ current predicament, Wheeler drew an analogy with the Hindenburg disaster, which shattered public confidence and marked the abrupt end of the airship era. She cited the avalanche of MDOs, the U.S. Postal Service ban on shipping vapor products and the proposed federal excise tax on vapor products, which would make vapor products more expensive than some cigarettes.
“I thought about how to concisely describe the regulatory impact that vaping has endured in recent months. I realize it’s sometimes tough to summarize the catastrophe. It would be like asking the captain of the Hindenburg blimp which factor was the worst: the lightning, the explosion or the gravity,” she explained. “The tragic reality here is that vaping is suffering through a multipronged attack from the Executive Branch, from Congress and from self-perpetuating activist groups, also from the deep-pocketed donors that bankroll them. Each of those parties are being actively cheered on by an irresponsible news media [that has] ignored its public duty to treat issues of scientific importance and policy with balance and skepticism.”
The panelists agreed that black markets are the inevitable result of the regulatory restrictions placed on vaping products. Flavor bans are driving retailers and consumers to both disposables and synthetic products. Briant said that rather than discouraging overall consumption, flavor bans merely cause consumers to shift their buying practices. “They go elsewhere across the city line to the next town, into the next county. It doesn’t solve a problem. In fact, we have three studies now that show … when you ban all flavors, young adults and underage youth switch back to smoking combustible cigarettes. So, the advocates for these flavor bans are actually creating a new public health problem, but they think they’re going to prevent this.”
Asked what kept them up at night, the panelists named employee safety, flavor bans and lack of enforcement. Szarmach related how a tax increase in Colorado had instantly resulted in more break-ins and robberies at her stores—an unwelcome development at a time when workers were already in short supply. Briant said that local flavor bans drove customers away without affecting total consumption—consumers would simply buy their products elsewhere. Wheeler said Arizona was not enforcing Tobacco-21 legislations, enabling bad actors to do good business.
FDA Update: Matt Holman, director of the FDA’s Center for Tobacco Products Office of Science
One of the things that makes TMA conferences unique is that they often include open interactions with the U.S. Food and Drug Administration. While FDA Center for Tobacco Products (CTP) Director Mitch Zeller provided a general overview, Matt Holman, director of the CTP’s Office of Science, offered a more detailed synopsis of the FDA’s recent actions on premarket tobacco product applications (PMTAs), key considerations in the agency’s “appropriate for the protection of public health” (APPH) determinations and the final rules for PMTAs and substantial equivalence reports.
Holman started off by summarizing the agency’s marketing granted orders (MGOs) to four Verve oral tobacco products—all of which were discontinued by Altria Group in 2019—and R.J. Reynolds Vapor Co.’s Vuse Solo vapor cigarette, the only e-cigarette product to receive an MGO as of this writing. In both cases, he said, the applicant had demonstrated that the products have lower toxicity levels and abuse liability risks than cigarettes along with minimal youth appeal. Both applications were also submitted well before the FDA’s Sept. 9, 2020, PMTA deadline.
“Once we looked at the toxicity of these products and really looked at them in comparison to combusted cigarettes and other smokeless products out there in the market, [we found that] their toxicity was significantly lower than that of the combusted cigarettes and lot of other products out on the market,” Holman told attendees. “The tobacco-flavored e-liquids that received the MGO provided data that showed the appeal of these products to youth is low … We are still applying that overall principle as we determine whether a marketing of new tobacco product is, in fact, APPH.”
Holman said that one of the key areas the agency looks for with vaping products, which constitute nearly all of the current PMTAs still under review, is the balance of youth uptake versus combusted cigarette smokers switching to vapor products. “It’s quite a challenging balance … it’s something that we certainly spent a lot of time really looking carefully at the data and all these PMTAs to determine whether we think youth uptake is very low while intention to switch by combusted cigarette smokers is high,” he said.
Holman also told the webinar audience that compliance for the FDA’s final rules for electronic nicotine-delivery systems (ENDS) went into effect on Nov. 4. He said that while previously applicants could provide a summary of studies that had been run, the new rule requires companies to submit those studies in full. “In the past, before the effective date of this rule, we might have filed a PMTA if they had any information about product perception and use intentions,” Holman explained. “For applications received Nov. 4 or later, not only would you have to have that, but you would have to have given us those actual studies.”
Another change in the OMTA rule highlighted by Holman is a change that allows for recipients of an MDO to rectify the shortcomings in their original application with a supplemental PMTA that cross-referenced the original application, thus streamlining the process for both applicant and reviewer.
“I think a very positive thing for both the regulator and the regulatee is the ability now to submit supplemental PMTAs. If we issue a marketing grant[ed] order for a given product and then that product needs to be modified (such as a change in suppliers), the supplemental PMTA can just cross-reference the original PMTA and just focus on providing us information on that new material. The volume on the supplemental PMTA should be a fraction of the volume of the original PMTA.” said Holman. “[The updated application must include] data and information explaining exactly what’s different in the new material compared to the original material and why that change in material doesn’t raise any public health concerns and ultimately, why the applicant thinks that that material change allows that new product to be APPH.”
Holman also explained that it is important for industry stakeholders to comment on proposed rules and to ask questions concerning any potential misunderstandings. Comments have been the source for several major changes in the final PMTA rule. For example, the agency changed all the terminology from “grandfathered” products to “preexisting” tobacco products.
Products that were in a test market before Feb. 15, 2007, will also now be considered preexisting products, a major change to the rules as test market products were not previously considered “grandfathered.” Lastly, the FDA created a new tobacco product category. “There have been products out there called all different things, such as heat-not-burn and things like that,” he said. “We formally defined those as heated-tobacco products [HTPs] distinct from, for example, vapes.”
Holman said that stakeholders must remember that all data submitted to the FDA must include data that addresses youth use. Such consumption remains “unacceptably high” and “still a major public health concern” for the agency. “I’ve said this time and time again, we really, ultimately, want to get in applications that we can accept, we can file, and put into scientific review,” he said. “We’d like to have all the information we need to conduct our scientific review. And ultimately, make a conclusion about whether, in fact, we think the data supports an APPH [decision].”
Panel 3: Early and Often
Matt Holman also participated in a panel discussion, which also sets the TMA conference apart from other tobacco seminars this year. The “Path to Market” panel discussion, moderated by Altria Client Services Director of Regulatory Advocacy Jennifer Smith, also included Gerry Roerty, vice president, general counsel and secretary of Swedish Match North America; Tara Couch, senior director of dietary supplement and tobacco services at EAS Consulting Group; Elaine Round, vice president of scientific and regulatory affairs at RAI Services Co.; and Kimberly Hesse, tobacco lab testing expert.
One of the takeaways from this session was the importance of starting “with the end in mind.” Getting things right from the beginning will save applicants time and money because even minor product changes involve new, time-consuming applications under the FDA’s pathways. Smith said that her company thinks that science and evidence-based product standards might be one way to accelerate review of PMTAs while also benefiting public health. “Tobacco product manufacturers and adult smokers switching from cigarettes would benefit from product standards that define a baseline for safety and quality for harm reduction products,” she said.
According to Roerty, the first question in the journey to market should be: Can we make this product, and can we make it consistently? Applicants should think about samples and suppliers and conduct environmental assessments. With the FDA seeking greater consumer insights, applicants should look for professional assistance in obtaining such information. And it pays to involve product testers early in the process.
“In order to put an application in, you have to test the product. The second thing is you have to make sure you can demonstrate to the agency that you can consistently make the product,” Roerty explains. “That’s fair. I mean, if you can only make one model of it, and you can never remake it again, then what confidence does the agency have that the test data and the application you gave them is repeatable?”
Couch explained that for a device to meet the requirements of APPH, companies must also focus on adhering to good manufacturing practices (GMP). Section 906(e) of the Food, Drug and Cosmetic Act is dedicated to good manufacturing practice requirements. “What it states there … is that the methods used in and the facilities and controls used for the manufacture, preproduction design validation, including a process to assess the performance of tobacco product, packing and storage of a tobacco product must conform to current good manufacturing practices,” said Couch. “And when you think about [it], GMP starts at the design stage.”
Getting products tested is also a major requirement on the path to PMTA approval. Finding the right lab is as crucial as designing the proper testing regime for a company’s products, according to Hesse. Lab workers may be unfamiliar with a specific product and require explanations on its operations. And then there are safety considerations, said Hesse. She recalled instances of products that sparked and ignited when connected to laboratory machinery.
“That’s going to be one of the first things that you do before you try to even think about filing a PMTA. You’re going to want to find an accredited lab and create a proof-of-concept plan utilizing two different pathing regimes,” said Hesse. “This is where you’ll learn whether or not the regimes work with your device … once we discover how the device interfaces and that the smoking regimes are going to work, they’ll do a little bit of testing at this point to find out whether or not the [pathing] regimes are working.”
The panelists suggested that all data collected from every aspect of a product’s cycle to market should be used effectively. Round said one lesson she learned from Reynolds’ successful Vuse Solo marketing application was that “bridging”—the referencing of existing studies—works, provided that the applicant explained it well. “We’ve seen evidence now, both in the Vuse application and [the] IQOS applications as well, that bridging is accepted from prior versions of products to current versions of products,” Round explained. “As you accumulate data, use it as many ways as possible.” She also advised applicants to generate a volume of information that is “exactly enough and not too much.”
Several panelists mentioned the challenge of obtaining consumer insights in PMTAs. They suggested that the FDA should consider allowing more of that information to be gathered as part of postmarket surveillance, which would have the added benefit of generating more realistic data. “Is there a way to try and streamline some of the requirements to rely more on postmarketing surveillance and reporting and streamlining the PMTA process on the front end?” asked Round. “I think that would just benefit adult tobacco consumers sooner who are considering either staying with or migrating back to riskier product.”
Holman said that everyone wants precise and scripted answers to the questions surrounding PMTAs. However, often there is not one single answer. “As scientists, there’s not any one way to get at something, right? And, so, I just want to be clear … we’re not intentionally ambiguous. We try to give a lot of leeway. I just want people to know that we’re constantly sort of assessing all that and trying to make sure that we’re not leaving any sort of work just permanently on the back burner,” Holman explained. “We got a lot of work thrown on our plate, and we’re trying to do our best to be fair.”
Panel 4 – Connecting U.S. and Global Trends
The final session of the TMA webinar explored the differences and similarities between the U.S. and the rest of the world in terms of nicotine product regulation. Moderated by Jeannie Cameron, CEO and managing director of JCIC International, this panel included Abrie du Plessis, regulatory affairs counsel at the South African Trade Law Centre; Patricia Kovacevic, general counsel and head of external affairs and regulation strategy at Cryomass Technologies; Rob Koreneef, public affairs advisor; and Flora Okereke, head of global regulatory insights and foresights at BAT.
The discussion focused on the recently concluded ninth Conference of the Parties to the World Health Organization Framework Convention on Tobacco Control (FCTC), which was developed before the emergence of reduced-risk products and which the panelists agreed was “frozen in time.”
Du Plessis described the positions of the various health bodies in relation to reduced-risk products. The Conference of the Parties, he said, is divided on the issue, providing no guidance on new and emerging products. The WHO has slight ideological opposition to novel products whereas the FCTC Secretariat—which has gradually evolved from an administrative body to an implementation agency—appears to have no use for reduced-risk products. The secretariat, said du Plessis, is focused on getting countries to implement the FCTC’s standard measures.
“I have to give you an overall picture of where these players are or were before COP9 … I think it’s quite simple to say that the Conference of [the] Parties is divided [and] has not come up with any decisive guidance on novel and emerging products,” du Plessis said. “The World Health Organization has but often ideological opposition to novel and emerging products.”
Okereke examined the diversity in regulatory regimes for novel tobacco products around the world. She distinguished three themes: how harm reduction is treated, the premarket approval process and product categorization. Tobacco harm reduction, she said, is acknowledged by regulators in the U.S., the U.K., Canada, Germany, Ireland and New Zealand. Everywhere else, it remains an “elusive concept.”
The U.S. is the only country with a robust premarket requirement, and when it comes to categorization, the world is divided. Some countries put vapor products under existing tobacco regulations (EU); others regulate them as pharmaceuticals (Australia); and yet others ban the products altogether (Brazil, Mexico, Turkey and Japan).
“There is no other place that requires an authorization for the protection of public health. I will say the U.S. is still an outlier in that regard,” said Okereke, adding that how countries regulate flavored products also varies greatly. “Another way to also bring out some of these differences is to look at how flavors are regulated … There is a flavor regulation driven by almost market-based restrictions. In the U.K. and most of [the] EU, most flavors are allowed. The only caveat is that you cannot market it to appeal to youth,” she said. “In the U.S., it doesn’t seem as if they’re going to allow anything but tobacco and possibly menthol flavors.”
Kovacevic highlighted the discrepancy between the United States, where the CTP, which is funded by industry user fees, is required to interact with the tobacco industry, and the rest of the world, where regulators keep the industry at arms’ length. She also pointed out the irony that even though the U.S. is not a party to the FCTC, it generates much of the science that the treaty’s signatories rely on—including industry science generated through the various marketing application processes.
The U.S. is also different from the FCTC in that the U.S. government works with tobacco product manufacturers in building regulations. “The U.S. is actually one of the places where, because of the user fee model of the Center for Tobacco Products, whereas the tobacco companies are paying, the CTP is funded exclusively by funds provided by the industry,” she said. “And because of the PMTA and other premarket authorization pathways, the FDA, as an agency of the U.S. government, actually, not only can but must interact with the industry.”
Kovacevic highlighted the disparity of research coming from various countries. There is a plethora of e-cigarette research coming out of the U.S.; however, there is very little coming from other countries. According to Kovacevic, this is because of the way U.S universities are funded and compensate their academics.
“Let’s say a Romanian or Russian researcher, who’s the university professor, if they conduct additional research on any topic, their salary’s exactly the same,” she said. “In the U.S., of course, there is a pressure to bring funds from well-funded charities such as Bloomberg … and of course, there’s going to be an increased incentive to conduct research because more research, more funds … That mechanism doesn’t really apply [internationally]. Most universities are either state-owned or public not-for-profits … whether you conduct more research or not, your salary at the end of the month is the same.”
During the question-and-answer session following the panel discussion, one participant asked why U.S. tobacco companies should care about the international environment. Kovacevic responded by describing the high barriers to entry in the U.S. If access to the U.S. market closes through MDOs, she pointed out, the only remaining market is abroad. And there is also a moral motive: Most of the smokers who stand to benefit from reduced-risk products live outside of the U.S., often in low-income and middle-income countries. “If companies are committed to harm reduction, they have a civic duty to serve them,” said Kovacevic.
The global e-cigarette market is expected to reach $84.43 billion in 2025, progressing at a compound annual growth rate (CAGR) of 17.65 percent over the period 2021–2025, according to a new report in Research and Markets.
Growth in the e-cigarette market has accrued due to the changing consumer perception toward combustible cigarettes, upsurge in working population, decline in consumption of cigarettes, mounting-up prices of tobacco cigarettes and peer influence on youth.
The market is anticipated to experience certain trends like upswing in Gen Z income, emergence of flavored e-cigarettes, increasing influence of social media and rise in technological developments by e-cigarette manufacturers. However, the growth of the market would be challenged by stringent regulations, nicotine exposure in e-cigarettes and surging concerns over side effects of e-cigarettes and vapor products.
The fastest-growing regional market is the U.S. due to increasing awareness of safer tobacco alternatives, continuous efforts of anti-smoking organizations shifting the tobacco consumers to alternative forms, i.e., e-cigarettes and increased customer acceptance due to cost-efficiency of these devices.
Further, the sudden outbreak of Covid-19 is causing an adverse disruption on the overall economy through halted production and logistics activities, affecting the demand and supply of e-cigarettes across the world.