Category: Retail

  • Ampol Willing to ‘Train’ Staff to Promote E-Cig Benefits

    Ampol Willing to ‘Train’ Staff to Promote E-Cig Benefits

    Credit: Caltex

    Ampol, a major Australian convenience store retailer, says it wants to train employees to suggest e-cigarettes as an alternative to combustible cigarettes in a bid to help reduce the smoking rate.

    Ampol, the parent Caltex and Foodary outlets across the country, urged the government to allow nicotine-based vaping products to be sold in the same way as cigarettes in its submission to a Senate inquiry, according to an article in The Sydney Morning Herald.

    Ampol’s head of government affairs, Todd Loydell, wrote that the company was well positioned to help cigarette smokers transition to “less harmful products” and was willing to trial selling e-cigarette products through its large network of convenience stores. “For example, our retail staff could provide a verbal cue to customers who ask to purchase cigarettes, encouraging them to consider the alternative options available to them in store,” he wrote.

    Australia’s Senate select committee on tobacco harm reduction will hold its first public hearing today into nicotine vaping products, which currently can be legally purchased only with a doctor’s prescription.

    Committee chair Hollie Hughes said the more than 8000 submissions had been overwhelmingly supportive of vaping and “overwhelmingly not in favor of a script model”.

    “I would like to see recommendations around very serious regulation,” she said. “I don’t think anyone is going to be a non-smoker and take it up. I think it’s an incredibly powerful cessation tool and part of [the] discussion of further reducing smoking rates in Australia.”

    The National Retailers Association, which represents 28,000 retailers across the country, also advocated for a consumer model for vaping regulation.

    This is the second recent inquiry into tobacco harm reduction and nicotine vaping. After a year-long inquiry, the standing committee on health, aged care and sport recommended in 2018 that the TGA should continue to have oversight of nicotine products.

  • Vapor Sector Concerned About U.K. Lockdown

    Vapor Sector Concerned About U.K. Lockdown

    Photo: Tobacco Reporter archive

    The U.K. Vaping Industry Association (UKVIA) expressed disappointment that the U.K. government failed to recognize the vapor sector as an essential business as it announced a new Covid-19 related lockdown.  

    John Dunne

    “Whilst we recognize the predicament that the government faces, with data highlighting the worsening coronavirus situation across the country, as an industry we feel extremely disappointed that the vaping sector has once again been overlooked as one providing essential goods and services,” said John Dunne, director general at the UKVIA, in a statement.

    “Only earlier this year Public Health England acknowledged the contribution played by vaping in helping smokers quit and recent research has again highlighted that vape products are much more effective than NRTs in helping smokers give up,” he said.

    “The worse thing that we need to avoid happening is people being tempted back to smoking or not trying to quit as a result of the stress caused by this latest development.”

    Dunne said it would be important for the vapor industry to reopen for business in early December—the target date for the end of the second lockdown—so it can maximize sales in the lead up to the Christmas holiday and and safeguard the thousands of people it employs in the manufacture, wholesale, quality control and retail of vapor products.

  • Oregon Vape Shops Stressed Over Proposed Vapor Tax

    Oregon Vape Shops Stressed Over Proposed Vapor Tax

    Credit: NYPLS

    Oregon Ballot Measure 108, a new tax on e-cigarette products and a tax increase on tobacco products is going to hurt local businesses because the products will affect what consumers can afford. It could also drive current vapers back to combustible cigarettes. E-cigarettes would be taxed at the rate of 65 percent of the wholesale sales price under the measure.

    The new e-cigarette tax would not include products that have been approved by the U.S. Food and Drug Administration to help people quit smoking. It also does not include e-cigarettes sold for the purpose of vaporizing marijuana.

    Oregon’s NewsChannel 21 stated Wednesday that it spoken with representatives of Smoke This, High Mountain Mist and Valley Vapors, three vape shops that say customers have expressed concern about the possible tax hikes.

    Measure 108 would raise the state’s cigarette tax by $2 per pack and tax e-cigarettes for the first time in Oregon. Currently, Oregon’s cigarette tax is $1.33 cents per stamp for a pack of 20 cigarettes.

    Supporters say such increases bring Oregon’s cigarette taxes in line with Washington and California. That means it would likely stop Washingtonians from driving across the state boundary to buy cheaper cigarettes.

    Jamie Dunphy, Oregon government relations director with the American Cancer Society Cancer Action Network, says the measure is about public health.

    “Evidence shows that e-cigarette use directly leads to tobacco use, and it directly leads to cancers, and it directly leads to a lot of health disparities that cause lifelong problems.” Several studies have shown all three claims to be false.

    Jason Weber, CEO of Vape Crusader, is working with local businesses in the “No On 108” campaign. He said the new tax would cause some businesses to take a hit. “A 65 percent tax on every product in our vaping stores is detrimental to our businesses,” Weber said. “I would say somewhere around 90 or 95 percent of us would have to shut down.”

    Weber explained that there are parameters in place to keep people safe and healthy. “All of our stores are 21 and older, so youth can’t come in our stores as is,” Weber said. “Again, these products have been proven 95 percent safer than smoking.

    “And then for the argument (that) this leads to tobacco use — well if that was the case, we’d see tobacco use skyrocket right now,” he said. “We don’t — we see that the CDC says it’s a 34 percent drop in vaping in the last year.”

    The American Cancer Society said the tax dollars will go toward intervention, public services, rehabilitation and tobacco education programs. The bill states that 90 percent of tax revenues would go to the Oregon Health Authority to pay for the treatment of sick people, especially those suffering from mental illnesses. The remaining 10 percent would go to tribal health providers and other culturally specific health programs for tobacco cessation efforts.

  • Vapor and E-Cigarette Sales Surging at C-Stores, Up 6.8%

    Vapor and E-Cigarette Sales Surging at C-Stores, Up 6.8%

    While the e-cigarette and vaping product industry overall is struggling everywhere from regulatory challenges to competition from nicotine replacement products to disruption amid Covid-19, the C-store market continues to grow.

    C-store dollar sales of electronic cigarettes have risen a hefty 6.8 percent for the 52 weeks ending Aug. 9, according to IRI, and unit sales are surging, seeing a 15.6 percent rise for the same period. And that’s with an average price drop of $1.13 per unit, according to Convenience Store Decisions.

    But the regulatory heat is rising. Most recently, California’s Gov. Gavin Newsom, D-Calif., signed into law Senate Bill 793, a flavored vaping ban, on Aug. 28. Chicago passed a flavored vape ban on Sept. 9, and backers of an Illinois state initiative that stalled last year said they plan to try again in 2021.

    Municipal and state bans are nothing new to vape manufacturers and retailers. And until federal guidelines, in the form of policy and/or legislation, set a standard for all jurisdictions those local restrictions will continue to trouble more convenience operators.

  • China Cracks Down on Illicit Ads and E-cigarette Sales

    China Cracks Down on Illicit Ads and E-cigarette Sales

    China’s tobacco regulator has just concluded a two-month blitz on the e-cigarette market, which took aim at illicit online marketing and sales to minors.

    E-cigarettes have repeatedly come into the regulatory crosshairs in China, as authorities sought to restrict how they can be sold based on concerns over their potential health impact and use by under-18s. Eye-catching designs and flavors have been blamed for a spike in young nonsmokers taking up the devices, according to a story on caixinglobal.com.

    The State Tobacco Monopoly Administration (STMA) and the State Administration for Market Regulation jointly said Wednesday they had removed over 23,000 videos and links promoting the products from the internet and shuttered almost 5,000 sales platforms.

  • Ukraine Latest Market for KT&G’s e-Cigarette ‘Lil SOLID’

    Ukraine Latest Market for KT&G’s e-Cigarette ‘Lil SOLID’

    Lil Solid device from KT&G

    KT&G’s cigarette-type e-cigarette, Lil SOLID, and its exclusive heatstick, Fiit, were launched in Ukraine on Sept. 7.

    This is the second achievement of collaboration between KT&G and Philip Morris International (PMI) following the launch of the product in Russia, according to an article in Business Korea.

    KT&G and PMI are stepping up their efforts to penetrate the global e-cigarette market as they expanded their presence to Ukraine in Eastern Europe about three weeks after the launch of Lil SOLID in Russia on Aug. 17. Ukraine has a population of about 42 million. Like Russia, Ukraine has many consumers who have interest in e-cigarettes.

    In Ukraine, Lil SOLID comes in three colors — dark navy, white and blue. Its exclusive stick also comes in three types — Fiit REGULAR, Fiit VIOLA, and Fiit CRISP. They are the same products as those launched in Russia.

    Under the deal with KT&G, PMI will fully manage product sales by utilizing its resources, knowledge and infrastructure in the Ukrainian market.

  • Philip Morris International Opens IQOS Stores in Manila

    Philip Morris International Opens IQOS Stores in Manila

    Photo: Alpar Benedek | Dreamstime.com

    Philip Morris Fortune Tobacco Co. (PMFTC) is opening its first four IQOS stores in Manila, reports The Manilla Standard.

    While the heat-not-burn product has been available in the Philippines through several retail outlets since April, the opening of the stores marks a significant step towards achieving the company’s vision of a smoke-free future, according to PMFTC President Denis Gorkun.

    “PMFTC’s vision is to help adult smokers who would otherwise continue to smoke to move away from cigarettes as quickly as possible and switch to a better alternative,” Gorkun said.

    PMFTC parent company Philip Morris International has invested more than $7 billion in research, development and production capabilities to create smoke-free products such as IQOS, which are now available in several countries.

    In July, the U.S. Food and Drugs Administration (FDA) authorized the marketing of IQOS and heat sticks in the U.S. with a reduced exposure claim adding that such issuance is appropriate for the promotion of public health.

    Gorkun said the FDA decision shows that IQOS is a fundamentally different tobacco product compared to cigarettes and a better choice for adults who would otherwise continue smoking.

    About 60 percent of Filipino adult smokers are willing to try smoke-free alternatives provided they are made commercially available and meet quality production standards, according to a study commissioned by PMFTC.

    PMFTC said IQOS is aimed at adult smokers. The company is implementing age verification and access restriction to ensure that only legal age consumers 21 years old and above will have access to the stores, the e-commerce website and the IQOS products.

  • U.S. Traditional Smoke Sales Continue to Outperform Vapor

    U.S. Traditional Smoke Sales Continue to Outperform Vapor

    Combustible cigarette sales are slumping slightly, but still continuing to perform better than expected while vapor products fall more than 17 percent, according to the latest Nielsen convenience store report.

    Overall sales volume for traditional cigarettes was down 2.1 percent for the four-week period that ended Aug. 22, according to the latest Nielsen. By comparison, the sales volume was down 0.8 percent in a four-week period in May, according to the Winston-Salem Journal.

    Electronic cigarettes sales, by contrast, are down 17.4 percent for the same four-week period ending Aug. 22. Vapor sales have been on a continuous decline for six months since the Food and Drug Administration implemented its latest round of heightened regulations on the products.

    It should be noted that Nielsen does not track brick-and-mortar vape shop sales. Industry experts say that data could have a major impact on market share if it were to be included. 

    The FDA regulations have depressed the demand for closed-pod cartridges that provide the nicotine, with No. 2-selling Vuse of R.J. Reynolds Vapor Co. being the lone exception, according to the news report.

    “The Nielsen data continues to show the decline in cigarette sales moderating to a pace that is only about a quarter of the rate of contraction in the second quarter of last year — before the much-enhanced attacks on vaping,” said David Sweanor, an adjunct law professor at the University of Ottawa and the author of several e-cigarette studies.

    Overall e-cigarette sales-volume growth has declined steadily since Nielsen’s Aug. 10, 2019, report, when it was up 60.2 percent year over year. The latest FDA restrictions on the sector debuted Feb. 6. The FDA raised the legal smoking age from 18 to 21 on Dec. 20.

    Those restrictions foremost required manufacturers of cartridge-based e-cigarettes, such as Juul Labs, R.J. Reynolds Vapor Co., NJoy and Fontem Ventures, to stop making, distributing and selling “unauthorized flavorings” by Feb. 6, or risk enforcement actions.

    The menthol and tobacco flavors still allowed for cartridge e-cigarette flavorings are the same as those that are legal in traditional cigarettes. Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 32.9 percent decline for the latest report. By comparison, Reynolds’ Vuse was up 56.7 percent in the latest report and NJoy down 40.8 percent.

    Juul has a 57.8 percent market share, unchanged from the previous report. Vuse is at 23.6 percent, up from 20.4 percent, while NJoy at 5 percent, down from 11.3 percent, and Fontem Ventures’ blu eCigs at 2.7 percent, down from 3 percent.

    Pricing and availability may be a motivating factor in the slowing of the decline of combustible cigarette sales. The Covid-19 crisis did slow product shipments from China and lower gas prices coupled with restricted travel have given consumers more expendable income, according to reports.

    Interestingly, cigarette sales in Australia are plunging faster than any time in history as smokers turn to  vapor products. There were 410 million fewer smokes sold in the country than two years ago.

    Cigarettes in Australia are more expensive than anywhere else in the world at $32 per pack of 25 sticks.

    Last year, about 2132 million cigarettes were sold in Australia – 193 million fewer than 2018, and following a 217 million drop the previous year.

  • Australia’s Cigarette Sales Plummet While Vapor Rises

    Australia’s Cigarette Sales Plummet While Vapor Rises

    australia opera house
    Credit: Srikant Sahoo

    Cigarette sales in Australia are plunging faster than any time in history as smokers turn to less-risky alternatives like vaping. There were 410 million fewer smokes sold in the country than two years ago.

    Dr Murray Laugesen, a trustee of the End Smoking NZ charity, analysed tobacco company returns that are published by the Ministry of Health and found a remarkable drop in sales, according to an article on NZherald.com. About 2132 million cigarettes were sold last year – 193 million fewer than 2018, and following a 217 million drop the previous year.

    The trend is driven by factors including cost and alternative products like vaping e-cigarettes – but needs to be accelerated if the December 2025 goal of less than 5 percent smoked tobacco prevalence is to be met. A 25-pack of cigarettes was Aus16.39 in 2011 and is now about Aus41.89 ($32).

    “Continuation of a 9.5 percent annual per-capita decline in tobacco use, suggests the goal will still not be met until at least 2029, four years overdue,” said Dr George Laking, an oncologist and chair of End Smoking NZ. “Success in the goal would imply a further reduction of tobacco imports by 5 per cent per year from 2021 onwards.”

    Laking said increasing the cost was one of the best ways to drop smoking rates, but prices had reached a point where doing so might create more harm than good. “Hardship experienced by disadvantaged people is so severe … if everyone in New Zealand enjoyed a middle class standard of living then we would not be in a grey area – we would say, ‘this is the most effective tool that we have,” he said.

    Setting aside cost, Laking added that other effective measures would be to reduce to availability of tobacco, and offer hardcore smokers an acceptable alternative. The latter had advanced from nicotine patches and gums to e-cigarettes and “heat not burn” devices, which heat tobacco to lower temperatures than cigarettes.

    “Although electronic cigarettes and heat not burn products are not perfect – the best thing is to not use any of these products at all – actually, if we were to convert our smoking epidemic into a situation of people using reduced-harm products, that would actually be a much better situation.”

    This month, legislation banning advertising and restricting e-cigarette flavors was passed, 620 days after Associate Health Minister Jenny Salesa promised to regulate the industry in November 2018. The bill will come into effect in November, and will also allow the Ministry of Health to recall products, suspend them and issue warnings.

    Laking noted the new legislation sought to strike a balance between helping people quit smoking, and avoiding uptake of vaping and new products by non-smokers including young people.

    “You have to strike a balance between those two things, and the question is, where do you strike it and how do you strike it?,” he asks. “Those of us who support vaping-to-quit do often feel somewhat overwhelmed by the barrage of claims asserting the risks of vaping, that are, scientifically, very poorly constructed.”

  • New York Vape Shop Owners Seeing Sharp Declines

    New York Vape Shop Owners Seeing Sharp Declines

    Just three months after the state of New York banned flavored vaping products, vape shop owners say there has been a steep drop in customers. The ban, aimed at reducing youth vaping, came after several cases of lung disease caused by illicit marijuana products.

    The number of those illnesses surged in August and September 2019 and had killed 68 people by Feb. 18, when the U.S. Centers for Disease Control and Prevention stopped collecting state health data on the illnesses because of the decline in cases, according to an article on Newsday.com.

    The CDC concluded that vitamin E acetate, which was sometimes added to vape products containing THC was “the primary cause” of the illnesses, Brain King, a deputy director in the CDC’s Office on Smoking and Health, told Newsday in an email.

    New York’s ban, which went into effect May 18, allows the sale only of vape liquids that are flavorless or taste like tobacco. A ban on all online vape sales started July 1. Some vape shops have shut down since the flavor ban, and others “are just barely hanging on,” said Cheryl Richter, executive director of the New York State Vapor Association.

    Tammy Mink, owner of Shore Vapes in Glen Cove, said the ban, and a Nassau County ban on all flavors except menthol and mint that went into effect Jan. 1, “killed our business.” About 90% of pre-ban sales of vape liquids were of flavored products, she said.

    Mink said most of her customers started vaping to stop smoking — as she did — and some have now returned to smoking. Mink said she would have welcomed a crackdown on sales of vape products to people under 21. Instead, the ban “opened up a black market,” she said. “It will not stop the kids from getting it.”

    Several stores on the Shinnecock reservation — which asserts it is exempt from the ban because of its legal sovereignty — still sell flavored vape products, said Taobi Silva, a former tribal trustee who co-owns a vape store and manages a smoke shop that sells vape products and traditional cigarettes.

    Silva saw increased sales after the ban went into effect “but not as significant as we were expecting.” That’s largely because gas stations and bodegas outside the reservation, as well as people operating from their car trunks, illegally sell the flavored products, he said.

    The current ban was passed by the State Legislature and signed by Gov. Andrew M. Cuomo. A state health council approved a ban in September, but a state appeals court blocked enforcement after a lawsuit filed by the Washington, D.C.-based Vapor Technology Association. Association president Tony Abboud said in a statement Thursday that the group “does not have any plans to litigate” the new flavor ban.