Category: manufacturing

  • Hardware Must Adapt to E-Liquids After Flavor Bans

    Hardware Must Adapt to E-Liquids After Flavor Bans

    Concept Photo of Huachengda Precision cotton products (Credit: Huachengda Precision)

    Flavor bans are challenging e-liquid and hardware manufacturers to produce adaptive products.

    By Ellesmere Zhu, 2Firsts

    Since China’s e-cigarette control measures took effect on Oct. 1, 2022, consumers can legally purchase only tobacco-flavored vapes in that country. Meanwhile, on the other side of the globe, several U.S. states and cities have banned flavored e-cigarettes. The European Union passed a ban on flavored heated-tobacco products recently, perhaps signaling what may come for flavored e-cigarettes. The once wide range of flavored electronic nicotine-delivery system (ENDS) products is now rapidly narrowing.

    Many industry insiders believe the move to ban flavors could expand globally, pushing tobacco flavors into the mainstream market. The current wave of tobacco flavors are testing the tolerances of both e-liquids and the hardware (vaporizers). Manufacturers are now challenged with producing a flavor that customers are willing to purchase and enjoy in markets where any flavor other than tobacco is outlawed.

    Reproducing the taste of traditional tobacco in an e-cigarette is no easy matter. It is one of the major hurdles that many enterprises are working on currently. The key to emulating the flavor and taste of traditional tobacco is the vaporizer (coil), a core component of any e-cigarette product. If a vaporizer manufacturer wants to tackle the flavor challenge, it must focus on hardware and software strength.

    Technical Troubles

    In the face of the global trend of enforcing tobacco-only flavors, e-cigarette manufacturers are having a difficult time making the transition. Most manufacturers rely on diluted tobacco flavors to help customers who have traditionally preferred fruit flavors through the transition, which results in the homogenization of tobacco-flavored vapes. This has many manufacturers trying to determine what features are necessary for a true tobacco flavor. Complicating the issue, no country regulates which combination of flavors make up a tobacco flavor nor how a tobacco flavor should taste.

    A representative from Shenzhen Huachengda Precision Industry Co., a global vaping manufacturer specializing in R&D, says that any juice aiming to achieve a global presence must have several characteristics. High recognition, rich fragrance and superior taste are the key to building memorable experiences for customers while dry burning, burnt core, condensation and exploding juice (spitback) are issues to avoid.

    Ceramic wick surface under electron microscope

    The vaporizer, meanwhile, should have a stable structure, which can be achieved by proper assembly and material selection. An unstable liquid absorption rate causes dry burning and burnt cores while unstable heating leads to inconsistency of taste.  

    Currently, the two most popular vaporizer materials on the market are ceramic wick and cotton wick. The current ceramic wick is hard in texture and easy to assemble, but due to technical limitations, its fine and small-size pore textures result in unstable liquid discharge as the juices with a higher viscosity (such as tobacco flavors) cannot flow through smoothly, according to Chen Ping, CEO and chief engineer for Huachengda.

    Cottonwick surface under electron microscope

    In comparison, the cotton wick is fully permeable and has a larger pore size, which allows the juice to pass smoothly (see Figure 2). However, for all cotton wicks offered on the market today, there is a risk of the wicking being burnt if the temperature on the device is set too high.

    “There is a great difference between the characteristics of tobacco-flavored and fruit-flavored e-liquids. If we apply the vaporizer designed for fruit flavor to tobacco flavor, the taste performance and performance of the core is completely different, really an unsatisfactory reproduction of the tobacco flavor,” says Chen. “Taking into consideration the different features between tobacco-flavored and fruit-flavored juice, Huachengda has come up with optimized tobacco flavor through its vaporizers. Ideally, different flavors of juice require different vaporizers, just like one key can only open one lock.”

    The Next Generation

    After the instability issues are resolved, manufacturers like Huachengda must still find the proper hardware to truly unleash the authentic tobacco flavor in e-liquids. To this end, Chen says his company has invested heavily in R&D. The vaporizer’s structure, materials, formulations and heating element must all be optimized, he explains.  

    For example, the previous generation of vaporizers were heated by wires, causing overheating, scorching and even burning. However, the heating element comprising a mesh coil can heat the core evenly, thus producing a richer vapor. It has a solid structure that is not easy to burn off, and the flavor can still be maintained at the initial level of quality over long periods of use, according to Chen.

    Looking forward on the path of innovation, Huachengda has been developing its new “fiber wick” for which the company applied for a patent in 2021. The manufacturing process of the fiber core is to break the fiber into a pulp and then “stick it together” with a binder to ensure the consistency of the material while improving uniformity, stability and vaporization, according to the company.

    However, there is still room for improvement in this technology. When mixed with e-liquid, the fiber wick will absorb the juice and expand gradually. This affects the liquid absorption speed. More performance and material testing are needed before the technology can be applied on a mass scale. As for now, Huachengda has COTTONX, a larger coil that is suitable for disposable e-cigarettes, and its still-in-development fiber wick, a smaller, more compact coil suitable for pod system ENDS products.

    “Improving the user experience has always been the focus of the entire industry,” says Chen, adding that a good example is how cotton dividers on the edge of coils were designed to prevent leakage; however, consumers complain of waste because it would absorb some of the liquids. The need to limit wasted e-liquid has spurred further innovation.

    The development of the vaporizers differs from that of the microchip, clarifies Chen. “For chips, from 10 nm [nanometers] to 5 nm to 2 nm, the smaller the better,” he says. “But for vaporizers, the development direction is still to be explored. We need to develop and customize the products according to specific laws and regulations and user needs in a decentralized manner. This means that only manufacturers with a large pool of technology reserves and strong R&D can go far in this industry.”

    Exterior view of Huachengda, a global professional vaporizer manufacturing base
  • PMI Inaugurates HEETS Factory in Indonesia

    PMI Inaugurates HEETS Factory in Indonesia

    Photo: Arkadiusz Fajer

    Philip Morris International’s Indonesian subsidiary, Sampoerna, inaugurated a factory for the production of IQOS HEETS consumables in Karawang, West Java, on Jan. 12, reports The Jakarta Post.

    The facility, which started operations in the fourth quarter of 2022, represents an investment of more than $186 million.

    The new HEETS factory, which will serve customers in Indonesia and the Asia Pacific region, fits with the government’s policy to encourage investment and increase the export of finished products. Speaking at the inauguration, Coordinating Minister for Economic Affairs Airlangga Hartarto said the investment will encourage innovation and create value in other sectors, such as retail, agriculture and R&D.

    According to PMI, the Indonesian plant is the company’s seventh factory for innovative smoke-free products worldwide and its first in Southeast Asia.

    During the inauguration, Sampoerna President Director Vassilis Gkatzelis conveyed his appreciation to the Indonesian government for the conducive investment climate, as well as the government’s commitment to maintaining national economic stability.

    “As a company that has been operating for almost 110 years, we aim to continue to contribute to the national economy through continuous investment as well as the economic impact on the national tobacco industry supply chain and ecosystem,” he said.

    Vassilis also noted PMI’s considerable investment in smoking alternatives. The company, he said, has invested more than $9 billion to develop, scientifically substantiate and commercialize innovative smoke-free tobacco products.

    IQOS debuted in Indonesia through limited market testing since 2019 and is available in Jakarta, Surabaya, Denpasar and Bandung, among other cities.

  • Vaporesso Given First UAE Sales Authorization

    Vaporesso Given First UAE Sales Authorization

    The open-system vaping system manufacturer Vaporesso announced that it has been registered as an authorized e-cigarette brand by the Ministry of Industry and Advanced Technology (MoIAT) of the United Arab Emirates (UAE).

    The move makes the subsidiary of Smoore International, the world’s largest vaping manufacturer, the first open-system vaping device brand to obtain the ability to market and sell its e-cigarettes in the UAE.

    “We are thrilled by the MoIAT’s decision to grant our flagship products the marketing and sales authorization, this has boosted our confidence in obtaining the approval for other seven premium products, including Luxe X and GEN PT SERIES, that are in the process of application,” said a spokeperson for Vaporesso’s Middle East team.

    The UAE has enforced laws that aim to regulate all nicotine-containing components used in e-cigarettes, refill packages, e-liquids, and tobacco products sold in the country.

    The regulations demand that the manufacturers and companies of vaping devices must meet Emirates Authority for Standardization & Metrology (ESMA) standards, which set out strict quality and safety requirements for e-cigarettes and related products, before placing them on the market.

    “The initial approval by the MoIAT, which allows the company to establish legal sales channels, both online and offline, for Vaporesso’s Xros NanoXros MiniXros 2, and ZERO S across the UAE, is the testimony to the company’s commitment to offering market-leading vaping products with unmatched quality and functionality, allowing the global vapers to enjoy the fun and flavors unique in Vaporesso’s products,” a press release states. “The market authorization also marks a significant step forward in its effort to further expand its presence in the Middle East.”

  • New British Standards for Vaping Quality and Safety

    New British Standards for Vaping Quality and Safety

    Photo: Lezinav

    The British Standards Institution has developed a fast-track informal standard, PAS 8855, to address quality, performance and safety issues related to vaping products, reports ECigIntelligence.

    The new PAS (publicly available specification), sponsored by Juul Labs, recognizes the progress made in the construction and use of e-cigarettes since PAS 54115 was issued in 2015.

  • The Soul of Vaping

    The Soul of Vaping

    So Soul, the rapidly rising vapor brand that began in China in early 2021, has now gone global.

    By Timothy S. Donahue

    Luna Wang wanted to do something different. She was seeing the products that the vapor industry was offering in early 2021, and she could tell that the industry was changing. Disposable devices were becoming the most popular products to help combustible cigarette smokers quit, but the available devices didn’t offer the same flavor or vaping experience that one could get from an open system. Luna Wang wanted to create something better.

    Wang has been in the vaping industry for eight years through various projects. In mid-2021, Wang joined forces with another experienced vapor industry entrepreneur, Peter Zhang. Both also had previous experience working with Fortune 500 companies. Together, they started the So Soul brand in Shenzhen, China, the global capital of e-cigarette manufacturing.

    So Soul soon entered the Chinese market, where more than 300 million smokers reside, and quickly found success. While the company also produces refillable pod products, it was its disposable products that really began to boost So Soul’s sales.

    “So Soul is a creative and dynamic vape brand which believes that innovation could bring freedom of the soul. So Soul has been a maverick and an unconventional company from the beginning,” said Lisa Li, head of media relations for So Soul. “Our founder, Luna, and the rest of the company’s employees are often considered dreamers. We believe that you shouldn’t have to compromise style for substance.”

    So Soul began because its creators believed something was missing in the market. Aside from a device’s appearance, aroma and flavor were two areas that Wang and Zhang felt were lacking in the Chinese vaping industry. The company founded its own research and development laboratory, staffed by the world’s top experts in the field, to develop products that could meet Wang’s high standards.

    “Our line of products offers smokers and vapers alike a range of flavors that are rich, smooth and satisfying. Our designs are inspired by the latest trends in fashion, and we’re always looking for new ways to stand out from the crowd,” said Wang. “Whether you’re a beginner or a seasoned vaper, we’ve got something for everyone.”

    The company devotes 60 percent of its profits to R&D in an effort to always be improving. It wants its products to stand out for their “combination of style, substance and soul,” explains Wang. “We are dedicated to providing our customers with products that are not only stylish and cutting-edge but also made with the highest quality ingredients and backed by extensive research and development.”

    During World Vape Expo Dubai, Wang told Vapor Voice that So Soul has perfected the art of flavor creation, and subtle “fragrances are at the heart of our products.” To accomplish the feat, Wang said that So Soul employs a team of expert mixologists that have years of experience in tobacco product development, and the company only uses the finest ingredients to create its unique flavor blends.

    “Our designs are inspired by the latest trends in fashion, and we’re always looking for new ways to stand out from the crowd. Whether you’re a beginner or a seasoned vaper, we’ve got something for everyone,” said Wang. “In a short space of time, we have already become one of the most popular brands in China. And now we’re bringing our products to the world. We strive to always be at the forefront of the latest technology. Our factory in Shenzhen employs over 1,000 professionals who share our commitment to quality and innovation.”

    An estimated 3 million customers worldwide have tried So Soul’s products. The company prides itself on being a one-stop-shop for all vapers from beginners to advanced nicotine consumers. Wang said that So Soul product users are stylish, creative and aim to present a safer, cheaper alternative to smoking cigarettes. So Soul offers vaping devices with an advanced mesh coil system and that range in volume from 2 mL to 5 mL of nicotine-based e-liquid.

    The company also offers devices that deliver from 600-plus puffs to 10,000 puffs, from bars to boxes and from sleek transparent design styles to designs with exquisitely crafted textures. Although disposable vapes are So Soul’s primary focus currently, Li said the company also provides refillable pod mod devices on demand for its customers.

    “So Soul also provides users with a wide range of flavors that are refreshing, sweet, savory and everything in between from Watermelon Ice, Mixed Berry Ice, Blueberry Ice, Spearmint, Blue Razz Lemonade, to Lemon Strawberry Pie, Pineapple Banana Coconut, Strawberry Watermelon Bubblegum, etc.,” said Wang. “There’s something for everyone. We expect to be responsible for offering the best vaping products to vapers at home and abroad and for pushing the entire industry forward.”

    Currently, So Soul’s products are sold globally in North America, Europe and Asia. The So Soul XC650 (Vibe), Y650 (Box) and S600 (Peak) are some of the most popular devices in the U.K. and European Union, according to Li. Since So Soul X7000 and Y10000 were launched in early 2022, they have been growing a massive market presence and have become popular in the U.S. and Middle East markets, particularly.

    While it depends on how heavily someone vapes and how often they use the device, typically, a So Soul device lasts longer than 92.3 percent of the disposable vape pods in the market, lending to the brand’s popularity. One popular vape reviewer stated that the So Soul X7000 is one of the best disposable vaping devices on the market.

    “The retro look really sets them apart from other disposables but, of course, that’s not the only reason why you should consider them,” the reviewer stated. “The flavors that I tried are all very enjoyable to vape on, and that’s only three out of the 20 that they offer, so there’s plenty more to choose from if the flavors that I tried aren’t quite to your liking.

    “The tight MTL draw is certainly not what I expected, but it was a pleasant surprise. The draw is similar to a cigarette, and that’s going to be a big plus for anyone looking to use these to quit smoking. Add to the fact that these provide a very satisfying draw and up to 7,000 puffs, and you get a great value for your money.”

    One of the major challenges for building the So Soul brand is the varying rules for vapor products from country to country, according to Wang. Regulations in the vaping industry are constantly changing and evolving in nearly every country where e-cigarettes are sold. Those regulatory rules include everything from raising the minimum legal sales age for e-cigarettes in many countries from 18 to 21 and federal, state and local restrictions on flavored e-cigarettes as well as the U.S. Food and Drug Administration recently being given the authority to regulate synthetic products.

    Many countries, like China for example, have even unveiled technical standards for e-cigarettes that will go soon go into effect. In a public document, in April, China’s State Administration for Market Regulation listed the requirements for design, chemical compounds and the mechanics for e-cigarettes that domestic manufacturers must meet in order to sell their products.

    “In addition to staying current on the laws governing the industry, we will keep up to date on the relevant scientific literature concerning the use of vaping products,” said Wang. “We may also consult with independent external scientific and medical experts to lead technology and ingredients innovation, so that we can fulfill our mission of helping people have easy access to affordable, safe and effective alternatives to traditional cigarettes.”

    So Soul’s mission is to promote less risky options for the global tobacco industry. So Soul and its team members are working toward helping create a smoke-free future. Moving forward, she said that the vaping industry is constantly evolving, and So Soul will remain at the forefront of innovation.

    “We have a passion for what we do, and it shows in our products. So Soul is more than just a brand—it’s a lifestyle. It’s about being confident, feeling good and living life to the fullest,” said Wang. “So Soul is style, substance … soul. The perfect vape for those who want it all.”

  • China Authorities Give Production License to RELX

    China Authorities Give Production License to RELX

    RELX vaporizer
    Credit: RLX Technology

    RELX Technology has joined a small but growing number of vaping product manufacturers that have received a manufacturing license from China’s State Tobacco Monopoly Administration (STMA).

    On Nov. 26, 2021, China’s State Council amended the country’s tobacco monopoly law to include vapor products, giving the STMA authority to regulate the sector.

    The STMA license, which is valid until July 31, 2023, allows RLX Technology to manufacture 15.05 million rechargeable vaping devices, 328.7 million cartridges and 6.1 million disposable e-cigarettes per year.

    Since the first quarter of 2022, Chinese authorities have issued a series of implementing rules and guiding opinions to strengthen oversight of e-cigarette products and regulate the e-cigarette industry. These rules and opinions set forth that all e-cigarette manufacturing enterprises must obtain a license from the STMA.

    “This license represents an important milestone in our strategic roadmap as we strive to comply with the new regulatory requirements in a timely manner,” said Ying (Kate) Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.

    “We believe that we are well-positioned to achieve compliance in our operations according to schedule. To adapt to the new market dynamics and ensure business development, we will, and will urge our business partners to, continue making efforts to comply with all applicable regulatory requirements, including, but not limited to, obtaining requisite licenses and regulatory approvals, developing products that meet the mandatory national standards, and processing all transactions via the National E-cigarette Transaction Platform when it is implemented.

    “We will remain committed to providing high-quality products that deliver superior performance and safety in strict compliance with legal and regulatory requirements, while exploring new growth opportunities in the industry.”

  • China Drafts Guidelines to Control E-Cigarette Production

    China Drafts Guidelines to Control E-Cigarette Production

    Credit: Vege Fox

    Draft rules to strictly control e-cigarette production were released by China‘s tobacco regulator on Monday, as the country continues to tighten its oversight of the industry.

    The State Tobacco Monopoly Administration said it would “reasonably” control the scale of e-cigarette production capacity to prevent overcapacity, according to a Reuters report.

    Foreign investment in the retail sector of the e-cigarette market would be banned, the regulator said, and it would review foreign investment in production, requiring e-cigarette firms that want to list in China or abroad to obtain pre-approval. It has long been expected that China would not allow outside competition into it local vaping market.

    China has in recent months been tightening its scrutiny of e-cigarettes, and last year amended its tobacco monopoly law to include vaping products. Since then, it has ruled that e-cigarette and vaping companies may only sell their products through authorized channels, and barred vendors from selling e-cigarette flavors other than tobacco.

    Earlier this month, China unveiled technical standards for e-cigarettes and vaping products.

    China’s cigarette industry operates under a state-run monopoly directly controlled by the tobacco regulator, which dictates pricing and distribution for brands and generates tax income for the government.

  • Changes in China

    Changes in China

    Credit: Tomthy Sean Donahue

    China’s domestic vapor market is facing uncertainty after the state tobacco regulator issues proposed vaping rules.

    By Timothy S. Donahue

    China’s domestic e-cigarette market is going to look very different next year. Draft rules governing e-cigarettes were issued on Dec. 2 by China’s tobacco regulator. The move brings vaping products out of a regulatory uncertainty and under the oversight of the state.

    The State Tobacco Monopoly Administration’s (STMA) draft rules follow China’s cabinet amending its tobacco monopoly law to include e-cigarettes in late November. The draft management rules define “e-cigarette” as an electronic delivery product that produces nicotine-containing aerosol for human inhalation. Heat-not-burn products are already regulated as cigarettes and subject to the Tobacco Monopoly Law.

    According to the draft rules, to sell legal e-cigarettes in China, a company must meet national standards to register with the STMA so it can conduct business. Companies manufacturing any ancillary products specifically for the vaping industry must also receive a special license from the STMA. Companies must also prove that they have the funding available for production and a facility with the required equipment to produce product that meets the country’s newly proposed standards.

    The new rules state that the STMA will establish a “unified national electronic cigarette transaction management platform” that all licensed e-cigarette wholesalers and retailers “must sell products through.” Tax collection and payment of e-cigarettes, meanwhile, “shall be implemented in accordance with national taxation laws and regulations,” the proposed rules states.

    The government and the tobacco industry are, essentially, one entity in China, with the STMA regulating the industry and China National Tobacco Corporation (CNTC) manufacturing tobacco products. Under China’s Tobacco Monopoly Law, STMA maintains control over virtually all stages of the production, sales, import, export and distribution of tobacco products in China.

    To date, the vapor industry in China has operated in a legal gray area. Regulation had been expected; it was just a matter of time before Beijing would take control of the country’s $1.3 billion e-cigarette industry. The size of the Chinese e-cigarette market has grown from rmb550 million ($86 million) in 2013, witnessing an eight-year compound annual growth rate of 72.5 percent, according to iiMedia Research Group. The World Health Organization estimates that China has over 300 million smokers, and more than half of adult Chinese men are current tobacco smokers. By contrast, the e-cigarette penetration rate among Chinese smokers is less than 1 percent.

    The news was welcomed by many leading industry players who say the proposed rules remove any uncertainty and help to weed out bad actors. In a press release, Frankie Chen, Chinese hardware manufacturer Smoore International’s global PR manager, stated that he expects the national mandatory standards to significantly improve product safety and provide global vapers with better products. “Since the standards set higher requirements for vaping manufacturing, it is expected that only the responsible manufacturer with comprehensive safety management can be compliant,” Chen stated.

    Domestic outlook

    While the entirety of China’s new draft rules for the regulation of vaping products are still vague, the country’s standards section does open a window into the future of China’s domestic vapor market. The transcribed National Standards of the People’s Republic of China for e-cigarettes allows only for closed pod systems with tobacco-derived nicotine and tobacco-derived nicotine salts. Flavors will be allowed, and cartridges can’t leak, according to a translated copy of the proposed rules.

    Unlike many countries, China will only allow tobacco-derived nicotine. The rules do not allow for a synthetic nicotine. “Nicotine extracted from tobacco should be used, and the purity should not be less than 99 percent,” the standards state. “Benzoate, tartrate, lactate, levulinate, malate and citrate of nicotine are allowed, and nicotine for preparing the above nicotine salts shall meet the requirements of [the previous statement].”

    However, synthetic nicotine will still be allowed for products to be exported. What isn’t clear is if that synthetic nicotine must be shipped into China premixed in PG and/or VG and held in bond or what those concentration percentages might include. “There’s no legal imports of nicotine as far as we can tell. There seems to be no leeway for legal imports of a pure synthetic nicotine. However, we think if people import e-liquids with nicotine as a certain percent of that, that’s OK,” an industry representative told Vapor Voice and asked not be named because they didn’t have permission to speak on the matter. “We don’t know if it’s 10 percent or 20 percent, and it can only be brought into the country to be manufactured for re-export; that appears to be OK.”

    It also seems that the proposed rules also do not allow for a company to import finished vaping products into China and then sell them domestically without having a license and being registered with the STMA. All Chinese e-cigarette manufacturing facilities are subject to the registration and production licensing requirements, even if the products produced are for export only. However, the country will continue to encourage exports and wants domestic manufacturers to develop markets overseas.

    “What they’ve really done is they’re clamping down on anything that is destined for the domestic market,” the source said. “They’ve also tapped into the tax department. Any time a manufacturer wants to manufacture an e-cigarette or parts for an e-cigarette, they have to have a local representative from the taxation bureau there. And each day’s production that they run, they have to pay tax on those products at the end of that day. They’re clamping down in terms of what people can do as well as trying to ensure that they collect relevant taxes from all the manufacturers.”

    Chinese vapor manufacturers are still waiting to understand what needs to be done officially for a company to produce vaping products for the international and/or domestic market. “We’re still waiting on that. The important piece isn’t the product standards,” the source said. “What I’m really interested in is the registration process, who’s allowed to do what, who has to issue licenses, because there’s an emergency management bureau involved, not just STMA, so a lot of people. We’re also trying to figure that piece out.”

    China’s product standards do clarify what types of products China will allow domestically. The country will only allow closed pod systems to be sold, stating that “devices and cartridges using e-liquid should have a closed structure to prevent artificial filling.” Additionally, flavors will be allowed for now, but flavors are only approved under a “temporary permit for additive in e-vapor matter,” and any substance or flavor not listed “shall be used only after being proved to be safe and reliable by risk assessment,” the standards state. The listed additives include numerous flavoring extracts such as coffee, cocoa, prune and vanilla bean.

    The standards only allow for a maximum amount of 20 mg of nicotine per mL. The source also said that the way he interprets the rules is that vape symposiums, such as the recently held 2021 IECIE Shenzhen eCig Expo (held Dec. 6–8), wouldn’t make sense to be held in China anymore. “I can’t imagine, if they’ve really taken bookings and got one on the cards currently, that they will cancel it, but we’ll see shortly,” the source said. “The Chinese domestic market is off limits to outsiders now. Moving forward, I don’t see a place for [trade shows] in this market anymore.”

    For China’s domestic manufacturers, the outlook is grim. While international players will survive, they are still confused about what is to be expected when the rules are finalized. Stock shares for RLX Technology, China’s largest domestic brand, fell by more than 16 percent after the STMA released the proposed rules.

    RLX chairperson and CEO Ying Wang, however, said the company welcomed the new regulatory framework. “We believe the sector will enter a new era of development—an era marked by enhanced product safety and quality, augmented social responsibilities and improved intellectual property protection,” said Wang at the presentation of the company’s third-quarter 2021 results.

    RLX Chief Financial Officer Chao Lu added that the company is well prepared for the new operating environment. “The investments we made in products, talents, research and compliance in the third quarter and beyond will place us in advantageous positions under the new regulatory paradigm,” he said.

    In Shenzhen, the capital of global vapor manufacturing, the industry is still in a state of shock, according to the source. “Everybody, from big to small, is scrambling to try and find out how this relates to them,” the source said. “They all have to register immediately with [the] State Tobacco Monopoly [Association] to continue doing business. They have to register what they’re going to be manufacturing, what their exports are, where they are going. It’s a complete disaster.”

  • Firms Embrace Synthetic Nicotine After FDA Rejections

    Firms Embrace Synthetic Nicotine After FDA Rejections

    Photo: Martinmark – Dreamstime.com

    Vapor Salon will be switching to synthetic nicotine, the company wrote in a public Facebook post dated Aug. 26.

    The post was published on the same day that the U.S. Food and Drug Administration denied some 55,000 marketing applications by Vapor Salon and two other companies on the ground that they “lacked sufficient evidence that they have a benefit to adult smokers sufficient to overcome the public health threat posed by well-documented, alarming levels of youth use of such products,” according to an FDA press release.

    “VaporSalon is switching to TOBACCO FREE NICOTINE on Friday, 8/27/2021,” the Facebook post reads. “The main purpose of this is to be outside of the FDA’s regulations with their hefty PMTA requirement which takes full effect on Sept 9th 2021 with needing an approved PMTA, or your product can no longer be sold. There has been 0 approved PMTA’s for anything ENDS related to-date.”

    According to Filter, more manufacturers have begun looking at the possibility of synthetic nicotine as a way to avoid having to comply with FDA regulations.

    The FDA defines a “tobacco product” as anything “made or derived from tobacco that is intended for human consumption, including any component, part or accessory of a tobacco product.”

    Eric Lindblom, a senior scholar at Georgetown’s O’Neill Institute for National and Global Health Law and a former director of the FDA’s Center for Tobacco Products Office of Policy, said that, in response to such moves by vapor companies, the FDA could either assert jurisdiction over synthetic nicotine as tobacco product or push for synthetic nicotine to be regulated like any other drug.

    Because synthetic nicotine is more expensive than the natural variety, a switch would likely result in higher prices for consumers. Vapor Salon indicated that many of its redesigned products will now have “an upcharge,” according to Filter.

  • Smok Parent, IVP Technology, Considering Hong Kong IPO

    Smok Parent, IVP Technology, Considering Hong Kong IPO

    Smok is one the most well-known and respected hardware manufacturers in the vaping industry. Now, Shenzhen IVPS Technology, the firm behind the brand Smok, is considering an initial public offering to raise at least $500 million in Hong Kong as soon as next year, people with knowledge of the matter said.

    According to a Bloomberg report, the company is working with a consultant in preparation for a potential share sale, said sources who asked not to be identified as the information is private. The offering could raise between $500 million and $1 billion. Deliberations are at an early stage and details of the potential offering such as timing and size may change, the people said. IVPS didn’t immediately respond to requests for comment.

    Smoore International Holding’s stock (HK: 6969), parent to the Vaporesso, FEELM and CCELL brands, grew by nearly 150 percent on its opening day of trading on the Hong Kong Exchange. However, after China’s Ministry of Industry and Information Technology proposed a draft regulation in March that would apply the same rules for the conventional tobacco industry to the e-cigarette sector, shares of several Chinese e-cigarette companies plunged and Smoore shares are down about 40 percent this year.

    While rising regulatory scrutiny of the vaping industry could impact investor appetite for listings in the sector, according to the article. IVPS could be less affected because it makes the device rather than the e-cigarette liquid, one of the sources said. However, Smoore also produces hardware and shares still fell after the Chinese government’s regulatory announcement.