Category: Retail

Despite Regulatory Challenges, Vapor Retail Rises
Regulatory challenges have had a major impact on the vaping industry. Premarket tobacco product applications (PMTAs), along side recent shipping changes have been testing the markets as of late. However, according to IRI Total U.S. Convenience data, for the latest four weeks ending April 18, 2021, electronic smoking devices saw a 19.9 percent increase in dollar sales and a 24.5 percent increase in unit sales. And for the latest 52 weeks, the category saw a 10.5 percent increase in dollar sales and a 17.7 percent increase in unit sales.
Credit: Auremar
Rick Staley, merchandising manager for Nashville, Tenn.-based Tri Star Energy’s Twice Daily stores, noted its numbers are overall in line with IRI’s, according to CStore Decisions. “At Twice Daily, customers are looking for alternative tobacco products,” he said. “We’ve noticed that nicotine pouches and vapor are both doing very well.”
And at ARKO Corp.’s GPM Investments, the vape subcategory is doing “extremely well,” said Kaitlyn Meara, GPM’s tobacco category manager, adding that customers are looking for variety in nicotine delivery, flavors and price points. The Richmond, Va.-based chain operates or supplies stores in 33 states and Washington, D.C., including both its 1,350 company-operated stores and approximately 1,600 dealer sites. “Like in most other CPG categories,” Meara said, “we saw an increase in baskets due to customers making fewer trips.”
Now that people are starting to return to their routines and to more traditional work environments, much remains unknown about the way that consumers’ habits will shift moving forward.
Meara noted it’s extremely hard to predict the tobacco category as a whole, but she’s “excited about the innovation in the category with nicotine pouches and IQOS.”
June 1, 2021
VPZ Announces Record Sales, Quit Clinics Launch
A major vaping retailer in the UK is launching a new vape clinic service with a goal of helping to increase numbers of smokers quit. The move comes as VPZ vape shops announced a 165 percent increase in “New to Vaping” kit sales in the first week of re-opening following the relaxation of Lockdown measures.
Credit: VPZ
The uptake and demand for stop smoking services underlines and re-affirms VPZ’s recent calls for vaping stores to be classed as an essential retailer during the Pandemic, according to VPZ director Doug Mutter. “We are investing to help smokers quit and to support the country in its ambition to be a tobacco free nation by 2030.”
Following over a year of having no NHS stop smoking services available, the company has been inundated with smokers looking to quit since reopening its full estate of stores on 26 April, according to Mutter. The retailer has seen a huge demand for New to Vaping (NTV) kits since it reopened its 150+ UK stores, with an unprecedented demand for NTV kits in the first week.
“With access to local stop smoking services and vaping retailers massively reduced during lockdown, thousands of smokers have been left without any services to help them quit,” a press release states. “Since re-opening its stores to bring customers a Covid-secure retail experience, VPZ has faced record demand from smokers looking for expert advice and personalized support to help them make the switch.”
The quit clinic investment and recruitment drive are part of VPZ’s commitment to play its part in helping the UK achieve its ambitions to be a tobacco-free nation by 2030, set out by the Government in 2017. “VPZ is the UK’s leading vaping specialist and we are spearheading the fight against the nation’s number one killer – smoking,” said Mutter. “We are excited to be launching the Vape Clinic concept following strong demand and recognizing the need for an enhanced level of service since reopening our doors. The huge reduction in NHS stop-smoking services, through COVID-19 and local authority cuts have been devastating in the country’s efforts to reduce smoking rates.”
May 17, 2021
Charlie’s Pachamama Disposables Sell Out in 21 Days
Charlie’s Holdings, parent to the Charlie’s Chalk Dust and Pachamama brands of vapor and CBD products, announced today that its Pachamama Disposables e-cigarettes are the fastest selling new product in the company’s history. Introduced to the U.S. market last month, the company says it sold out of its entire initial stock in fewer than 21 days, according to a press release.
“It is estimated that more than 20 percent of the world’s population consumes nicotine in some format. As a company, we believe that our new technologies and products can provide adult consumers with a better, more responsible and therefore more enjoyable means of experiencing nicotine,,” Brandon Stump, CEO of Charlie’s Holdings, said. “Now that we have launched Pachamama Disposables in the United States, later this year our distribution will expand into more than 75 international markets where we expect to introduce millions of adult consumers to the extraordinary Pachamama sensory experience. We are very excited about what this launch – and the new $600 million market opportunity – will mean for our customers and our company.”
Market share data shows that disposable e-cigarettes already represent a $600 million – and growing – market in the $7 billion total U.S. e-cigarette market, according to the release. The company launched the disposable product to meet the needs of consumers by providing an “adult-only, recreational use, consumer product that is simple to use, discreet, and immensely satisfying.”
Earlier this month, Charlie’s Holdings announced that it has closed a $3 million capital raise through the private sale of 351,669,883 shares of common stock to the company’s founders, Brandon Stump, CEO, and Ryan Stump, COO, according to a press release. The company intends to use the proceeds from the offering to drive substantial future growth, facilitate new product launches, increase working capital, retire outstanding debt, and for other general corporate purposes.
David Allen, CFO said the proceeds from the private placement will strengthen the company’s balance sheet, accelerate European growth, allow for expansion into the Middle East, and facilitate the company reaching several important near-term milestones, including the FDA’s anticipated announcement of Charlie’s successful PMTA.
April 22, 2021
Avail Vapor to Carry Bantam Vape E-liquids in Stores
Bantam Vape announced that its e-liquid products are now available for purchase through Avail Vapor’s specialized brick-and-mortar locations, as well as on its e-commerce website, www.availvapor.com. Avail will offer a wide selection of Bantam’s products including Sour Strawberry and Kiwi Berry, according to a press release.
“Bantam is known for our artisanal flavors that are built from scratch using only high-quality ingredients, as well as our commitment to compliance and transparency,” said Bantam director of sales Michelle Gottlich. “Joining with an established leader in the vaping category like Avail poses an exciting opportunity as we continue to expand our retail and online presence; and most importantly, gives our consumers greater access to our products.”
All of Bantam’s flavors are backed by science, manufactured in certified clean rooms and undergo rigid testing and analysis, “resulting in smooth, clean-tasting e-liquids, making Bantam Vape your coil’s best friend,” the release states. Additionally, the brand’s premarket tobacco product application (PMTA) submission to the U.S. Food and Drug Administration (FDA) is queued for formal scientific review.
“We recognize that Bantam, like Avail, is dedicated to providing consumers with products that echo our principals of exceptional quality and flavors,” said Justin Murphy, Avail’s vice president of retail operations and marketing. “We are excited to stock the variety of flavors, nicotine level options and reliable quality of merchandise that the Bantam brand offers.”
April 20, 2021
No. 70: The FDA Issues Vintage Vapors PMTA Warning Letter
The U.S. Food and Drug Administration (FDA) issued its 70th warning letter this year to a company the regulatory agency says is violating marketing rules. Vintage Vapors received the letter on March 22 and the FDA posted the information on its website on March 25.
The FDA states that it determined the company did “manufacture, sell, and/or distribute to customers in the United States Vintage Vapors Unflavored Tobacco 03MG 30/70 e-liquid product without a marketing authorization order.” Premarket tobacco product applications (PMTA) were due to be submitted to the FDA by Sept. 9, 2020.
The FDA also states that “the violations discussed in this letter do not necessarily constitute an exhaustive list” and companies should quickly address any products that violate the same rules as the product mentioned in the letter. “Your firm is a registered manufacturer with 1,433 products listed with FDA. It is your responsibility to ensure that your tobacco products comply with each applicable provision of the FD&C Act and FDA’s implementing regulations,” the letter states.
Companies that receive warning letters from the FDA have to submit a written response to the letter within 15 working days from the date of receipt describing the company’s corrective actions, including the dates on which it discontinued the violative sale, and/or distribution of the products. They also require the company’s plan for maintaining compliance with the FD&C Act in the future.
March 28, 2021
Legal THC Vape Pens Enter Missouri Marijuana Market
Eight Missouri medical marijuana dispensaries, including three in the Kansas City area, started selling THC vape pens and cartridges for the first time last week. Store owners say customers have clamored for them for some time, despite varying opinions on their safety.
Credit: Clear Cannabis
The potential dangers of vaping nicotine and black market THC have been studied. The U.S. Centers for Disease Control and Prevention (CDC) hasn’t updated reports on a lung injury associated with black market THC vaping products since the start of the Covid-19 pandemic, but in February 2020 it reported 2,800 hospitalized cases of EVALI and 68 deaths since August of 2019. The CDC has stated that vitamin E acetate in illegal THC vape pens was to blame for the lung disease.
“Vaping products are “by far our No. 1 request,” Greenlight CEO John Mueller said, according to an article in Newsbreak.
Last week, medical marijuana vape pens were delivered to Greenlight’s dispensaries in Kansas City, Independence and Harrisonville. It’s the first time the products have been available in the state because it took time for cultivators to extract trim material down to a distillate form that could be vaporized.
“It’s an exciting day for the industry,” Mueller said, opening the first box.
March 22, 2021
PACT Act Pushing Many Vape Shops to Close
The Preventing Online Sales of E-Cigarettes to Children Act (PACT) and the shipping problems it created has forced many companies to end all US online sales and many others have been forced out of business. Chris Innes, owner of Elevated Vaping in Houston, Texas, announced that he would closing his shop due to the PACT Act and the U.S. Food and Drug Administration’s (FDA) stringent premarket tobacco product application (PMTA) requirements.
Vape Spot in Los Angeles announced it would be closing due to the PACT Act.
The Vape Spot in Los Angeles also announced they would be closing their store due to the PACT Act after 8 years helping smokers make the switch. Securience, parent to DuraSmoke, announced a merger with VapinDirect in order to stay in business. Logic will end all online sales on March 16. White Cloud Electronic Cigarettes said it would end all online US sales on March 26. Vapewild and Vistavape also announced that they would be closing up shop.
“If the increase in shipping costs wasn’t enough, the bill also imposes huge paperwork burdens on small retailers, and backs it up with threats of imprisonment for even innocent mistakes,” said Gregory Conley, President of the American Vaping Association. “This is not a law designed to regulate the mail-order sale of vaping products to adults; it’s an attempt to eliminate it.”
Effective March 28th, 2021, recipients of all vaping product(s) purchased online will be required, by law, to present ID and sign for their delivery. The USPS mail ban on vaping products will go into effect on April 27th, 2021. After this date, customers will no longer be able to receive vaping products by way of USPS delivery.
PACT Act regulations are stringent for online merchants that private shipping companies also will no longer deliver vapor products. “Effective April 5, 2021, UPS will not transport vaping products to, from or within the United States due to the increased complexity to ship those products,” said UPS spokesperson Matthew O’Connor in a statement.
Fedex began no longer accepting vapor products for delivery on March 1, 2021. DHL had already previously banned all shipments of nicotine-containing products and has now also ended all cannabis vapor product shipments.
If the PACT Act or PMTAs are forcing your shop to close, email timothy@vaporvoice.net and tell us about it.
March 14, 2021
Targeted Blitz Finds Fake Juul Products in South Florida
Juul Labs is seeking out retailers selling illegal counterfeit and compatible Juul pods and devices.
Juul Labs announced today that it recently initiated an enforcement campaign in South Florida to identify retailers trafficking counterfeit and other illicit vapor products. A press release states that the company obtained intelligence on upstream suppliers and took expansive enforcement action to address a growing black market.
“We need to be a responsible and trusted steward of vapor products,” said Adrian Punderson, vice president of Brand Protection at Juul Labs. “As such, it is our obligation to support enforcement against illicit and illegal products as we strive to reset the vapor category and earn a license to operate in society.”
Juul Labs’ Brand Protection Team conducted an investigation of 917 retailers in Miami-Dade County and Broward County [Florida], representing a major urban area that comprises various classes of retailers, including convenience stores and specialty vape shops, the release states. “These South Florida counties also are in close proximity to a U.S. port-of-entry and international-mailing facility — known entry points for the importation of illicit products.”
With the support of a third-party compliance auditor, Juul Labs conducted product surveillance and obtained samples from the retailers. The surveillance identified 30 retail outlets (3.3 percent of all surveilled outlets), as selling illicit counterfeit, diverted or unauthorized Juul-compatible products.
“Unauthorized Juul-compatible products are designed and marketed to be used with authentic Juul products without the company’s authorization. Counterfeit and compatible products violate intellectual-property rights and may raise additional health and safety risks given their untested ingredients and lack of manufacturing and quality controls and unsanitary conditions in which they are produced,” the release states. “Illicit vapor products actively undermine underage-prevention measures given their ease of access.”
Of the 30 outlets in South Florida selling illicit products, 6 outlets sold counterfeit Juul Pods, primarily offered in illegally marketed flavors, while 1 sold counterfeit Juul devices, 10 outlets sold diverted Juul Pods, primarily diverted from Canadian and Russian markets, and 13 outlets sold illegal and unauthorized compatible pods, with the majority of these compatible brands subject to International Trade Commission exclusion orders.
“Insights into these illicit activities will inform broad enforcement actions against these violating retailers, including cease-and-desist letters, training and education, and litigation as needed. But these actions are just a starting point: The Brand Protection Team will collect additional records and information from the violating retailers to identify upstream suppliers and sources of the illicit products,” the release states. “This will result in further enforcement action to disrupt the illicit trade of black market vapor products that are impacting local communities. Juul Labs will deliver these findings to law enforcement authorities and support their efforts to bring legal action.”
February 18, 2021
Vape Shops Paying Price for Selling Counterfeit Products
A vape shop in Wyandotte County in the U.S. state of Kansas business has been ordered to pay $30,000 for selling counterfeit vaping products. Kansas Attorney General Derek Schmidt says a Vinodbhai Patel, operator of Jay Ganegh, LLC, has been ordered to pay $30,000 in penalties for selling fake e-cigarette products.
Credit: Auremar / Dreamstime.com
The company was ordered to pay the civil penalties in a consent judgment that was approved on Tuesday in Wyandotte Co. District Court by Judge Constance Alvery, according to an article on wibw.com. Schmidt said the defendants were also ordered to reimburse the cost of the investigation into their business.
Schmidt said that the consumer protection judgment is the third reached by his office in the past six months that address counterfeit e-cigarette products discovered by his Tobacco Enforcement Unit. Schmidt said in October of 2020, Aaron Dune and Smoke Stax, LLC, were ordered to pay $5,000 in civil penalties and the costs of his investigation in a case filed in Sedgwick Co.
According to the ruling, the defendants knowingly misled customers by falsely representing e-cigarette products to be authentic branded merchandise when they were not. Schmidt said the products involved in the case included both vaping hardware and e-liquids, adding that additional investigations into counterfeit vaping products remain pending.
February 13, 2021
Vapor Product C-Store Sales Up More Than 12 Percent
E-cigarette sales continue to recover from a Covid-19 slump. Sales in C-stores are up 12.7 percent after rising 2.9 percent in the previous data release, according to the latest Nielsen convenience store report released last week. Nielsen does not track vape shop data.
Credit: William Thompson
Sales overall had slumped since February 2020, when the U.S. Food and Drug Administration implemented its latest round of heightened regulations on the products, according to the Winston-Salem Journal. 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.
On Feb. 6, 2020, the FDA, among other things, 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.
Top-selling Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 5% uptick in the latest report. By comparison, Reynolds’ Vuse was up 82.2 percent in the latest report and NJoy down 22.3 percent.
Juul’s market share dropped from 52.1percent in the previous report to 51.3 percent. It was at 53.3 percent a year ago. Vuse’s market share climbed from 29.2 percent to 30.6 percent, while No. 3 NJoy slipped from 5 percent to 4.9 percent, and Fontem Ventures’ blu eCigs slipped from 3.5 percent to 3.4 percent.
February 8, 2021