Category: Shop talk

  • Opinion: Vapor Tax May Push Vapers Back to  Cigarettes

    Opinion: Vapor Tax May Push Vapers Back to Cigarettes

    Credit: Drei Kubik

    A vapor tax increase will be included in the revised budget Gov. Gavin Newsom plans to submit Thursday. The tax would take effect January 1, 2021, and is projected to raise $32 million in revenue for fiscal 2021.

    The new money would go toward administration, enforcement, youth prevention, and health care workforce programs, according to an article on thecentersquare.com.

    The current tax on vapor products is 59.27 percent of the wholesale value. The new tax increases the rate to $2 for each 40 milligrams of nicotine per product. The governor’s budget summary also supports a statewide ban on all flavored nicotine products, including menthol cigarettes, which the Tax Foundation says would create unintended consequences.

    Lung injury hospitalization cases linked to vaping in California totaled 199 as of Feb. 25, 2020, according to the Centers for Disease Control and Prevention. Among the 150 to 199 cases reported in California, four deaths were reported, according to the CDC.

    According to a 2019 survey of high school students nationwide, 27.5 percent of students said they had vaped at least once 30 days prior to taking the survey; 10 percent said they considered themselves regular vapers.

    A new analysis by Tax Foundation economist Ulrik Boesen points to unintended consequence if Newsom’s proposal is enacted. The price of the most popular vapor product, a JUUL 4-pack, would go up to $8.25, excluding the existing wholesale tax, more than quadruple the tax of $2.87 on a pack of cigarettes.

    The tax increase could prompt users to switch from vaping to smoking, Boesen argues. The American Cancer Society Cancer Action Network Inc. is urging state legislators nationwide to increase tobacco taxes. Even if California did increase cigarette taxes, the hike would be less than that imposed on e-cigarettes.

    “This inconsistency goes against the concept of harm reduction, which is the approach that it is more practical to reduce harm associated with use of certain goods than avoiding it completely through bans or punitive level taxation,” Boesen says. “In the context of vapor products and cigarettes, it is important because the risk profiles for the two products are wildly different. Public Health England, an agency of the English Ministry for Health, concludes that vapor products are 95 percent less harmful than cigarettes.”

  • Vape Shops Dealing With Supply Shortages

    Vape Shops Dealing With Supply Shortages

    Photo courtesy of Felecia Boggess
    U.S. vape shops have been hit hard by the coronavirus pandemic as supply chains dwindle and consumers become concerned.

    By John Castle

    The coronavirus pandemic has wreaked havoc on industries from travel to entertainment to hospitality, and the vapor industry has not been spared. Since the first international cases of Covid-19—the disease caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) and that first appeared in patients in late 2019—businesses have faced delays and temporary closures as the virus spread from Wuhan, China, to the rest of the world.

    In response to the pandemic, both government and market forces have been locked down tight to prevent further spread of the virus. Public venues have suspended operations, and some have closed entirely until further notice. Major sporting events such as the Tokyo Olympic Games have been postponed until 2021. In the U.S., Major League Baseball may see a season opener much later than normal—if at all—this year. Across the globe, professional football, basketball and hockey leagues may also have to cancel their 2020 seasons. Live concerts are banned. Bars and restaurants are only allowed to have takeout and delivery or are shuttered entirely.

    Factories are shuttered as well or in some cases remain open but have been repurposed to manufacture N95 filtration masks and/or ventilators. In Shenzhen, China, many factories remain closed or are producing at less than 100 percent. Some factories have even reportedly moved away from producing vapor products (such as mods, sub-ohm tanks, rebuildable dripping atomizers, rebuildable tank atomizers and atomizer coil heads) to manufacture the much-needed safety supplies for health workers and those infected with the disease.

    Some e-liquid makers have changed course too and are now manufacturing hand sanitizer since propylene glycol and vegetable glycerin can be used to produce hand sanitizer as easily as they can be used to produce e-liquid.

    The vapor industry is struggling, according to experts. Covid-19 and its effects in the form of government lockdowns as well as manufacturers either temporarily repurposing their production lines or shutting down entirely has resulted in a marked—and in some cases extreme—shortage of the products distributors, retailers and consumers rely on to sustain their vapor businesses.

    U.S. vape shops have been hit hard by the pandemic. Supply chains are dwindling. Consumers are worried too. “I’m in West Texas. Only the supply has been affected so far,” said vaper Rick Martinez. Vape shops share those concerns. Vape shop owner Deidra Renee Casey responded, “The only trouble I’ve had is getting my products in.”

    “So far, for us, [the problem] is just getting supplies we need, such as coils, mods, tanks and kits,” said Tiffany Smith, owner of 180 Vapors in Sandwich, Illinois. Charlene Fuller, who owns Upstate New York Vapes in Queensbury, New York, said, “No staff are sick, but I have informed them if they get sick and have a fever to stay home (with pay) and call their doc. [We] also amped up cleaning procedures. Sales are steady, but inventory for some things are dwindling.”

    David Cervone, owner of The Vapor Lounge Rhode Island (TVLRI), reported, “We’re only having supply chain issues. Most people around us have been educated that the government overwhelmingly spreads misinformation, so they just stay clean and understand the stock issues.”

    Photo courtesy of Felecia Boggess

    Perhaps one of the darkest reports of what’s going on with vape shops comes from Felecia Boggess, manager of Mystix Vapes, based in Gillette, Wyoming. “This last month, our sales were booming from the ban on Juul and NJoy pods. It got to the point where we only had eight mods and some other products. We are able to get all the juice that we want but are unable to get any Falcon coils for the NJoy King … or the tanks themselves,” she wrote in an email. “As well as Caliburn Koko [pod] kits, Uwell tanks or coils and TFV … tanks or coils. Which, in my case, is awful because there goes almost half of my sales for the month.”

    The longer the pandemic drags on, the more severe the supply shortages are going to get, according to shop owners. Principally, this may be due in part to the large percentage of vapor products that are produced in Shenzhen, China.

    Boggess says that last month, Mystix sold close to 70 Uwell Caliburn kits and now has angry people coming in stating that the company sold them a product the consumer can no longer use since it’s hard for users to get any product, such as pods. “Something needs to happen,” she writes.

    The supply issues being suffered by vape shops could also prove to be a watershed opportunity for U.S. domestic manufacturers. As disheartening an episode as this is for American distributors and retailers, supply lines as fragile as the existing ones may not be trusted again so easily. Vape shop owners say someone is going to have to step into the gap and start producing more vapor products (such as mods, tanks and atomizer coils) domestically where the supply line is more robust and better protected.

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  • Covid-19, Flavor Ban Could Crush New Jersey Vape Shops

    Covid-19, Flavor Ban Could Crush New Jersey Vape Shops

    Coronavirus cell
    Photo: mctic.gov.br | Flickr Creative Commons

    As people rushed to stock up on toilet paper and hand sanitizer in March, Debi Meinwieser dropped thousands of dollars on more than 400 bottles of vape juice for e-cigarettes, according to an article on NJ.com.

    The 56-year-old from Whiting Township said she sought out the supply not in anticipation of the coronavirus outbreak and stay-at-home order, but to avoid a drought when the state law banning flavored vaping products takes effect Monday.

    “I stocked up,” she said. “But I’m concerned for the new vapers and the smokers who haven’t had the chance to start vaping yet.”

    Meinwieser, like many others across the country, said she quit smoking cigarettes after three decades once she started vaping. She had tried nicotine gums and patches, but nothing helped to wean her off nicotine. Instead, she credits the flavored vaping products she has used for nearly five years for saving her life, according to the article.

    As New Jersey officials watch for the forecasted peak in coronavirus cases later this month, another date looms: April 20, the day when vape shops must stop selling flavored products. Gov. Phil Murphy signed the law banning the sale of of flavored vaping products, which include candy and fruity flavors that may attract teens, in January. It came with a 90-day waiting period before going into effect.

    The measure marked the nation’s first permanent flavor ban, going further than several emergency orders some states issued last year as a mysterious vaping health crisis took hold in the fall. Rhode Island has since made its temporary flavor ban permanent, too. The illness put 2,807 people into hospitals and killed 68, according to the U.S. Centers for Disease Control and Prevention, according to the article.

    Supporters of the law say it will keep the products out of the hands of teens, who have taken up vaping years after youth cigarette use fell. But opponents say it will force adult users, many of whom previously smoked cigarettes, either back to those products or to the black market. And vape shops, largely small businesses employing a few thousand people across the state, have promised the ban will thrust them into bankruptcy. It will also rob the state of tax revenue as people shift to the web or stores over state lines to buy the products.

    “They’re still easily accessible, ordering online, shipping in state,” said Sheryl Agro, owner of InnoVapes in Wrightstown. “You’ve effectively just given up your control over these products.” A former version of the flavored vaping bill included a ban on menthol cigarettes, but state Senate President Stephen Sweeney said lawmakers put that on hold, planning to bring it up again later this year during budget discussions. The change has vapor rights advocates accusing lawmakers of playing a political game, rather than looking out for the health of the state.

    The stress on the industry was exacerbated when Murphy ordered non-essential businesses to close in an effort to contain the coronavirus outbreak. In mid-March, the vape shops suddenly found themselves fighting a tighter deadline to unload the products, but had no customers walking through their doors. Now, they’re pleading for an extension on the ban, and for the state to allow them to operate with curbside pickup as essential businesses. Activists and shop owners say they haven’t heard back from officials, according to the article.

    “Cigarettes are still labeled to be sold. Cigarettes are proven to be killing,” said Shoaib Iqbal, CEO of Good Guy Vapes and a vice president of the New Jersey Vapor Rights Coalition. “We feel like an alternative should also be able to be sold.” Other countries under lockdown — including Spain, Italy and France — have kept vape shops open, and last week, Louisiana reversed a decision to close them.

    And for those like Meinwieser, who found relief in a legal and regulated product, the policy is a gut punch. “When I started vaping, I had no clue that vaping was being attacked,” she said. “I just thought, ‘Oh my god, I finally found something to help me quit smoking.’”

    She, too, wonders why vape shops have not been allowed to operate with curbside pickup as essential businesses, like takeout restaurants or stores that sell cigarettes. She bought some 400 bottles at $8 a piece, a wholesale price, but knows many others do not have the luxury to drop so much money at once.

    In early March, with about five week left until the ban took effect, vape shop owners said they had not seen customers stocking up yet, both because time remained, and because some customers knew they could order online. Now they’re facing even larger stockpiles of soon-to-be banned product than expected.

    “We’ve been kind of robbed of that time,” Iqbal said. “We’re hoping to get some sort of extension.” A spokeswoman for Murphy declined to comment on an extension of the enactment date. While they’ve started online ordering, Iqbal says many customers have reached out desperately — they do not know how to order products online, or do not have credit cards to pay for them.

    During the 90-day period, vape shop owners were meant to unload product and pivot their business models. Agro sells some CBD products for people and pets, but most of her revenue to support five employees with benefits comes from the flavored vaping products purchased by military personnel at nearby Fort Dix. She did not think her shop would survive the ban, and said the closure of nonessential businesses in March put her further behind, according to the article.

    For her, the inability to open during the stay-at-home order only builds on the idea that the government has something against vape shops. “To deem vape shops as nonessential is just more blatancy from the government that they just don’t want to accept that this works as a smoking cessation product,” Agro said. “I quit the day I started vaping. I would never go back. I had a dream that if I could do this myself, I could help so many other people.”

  • Florida Vape Shop Wants ‘Essential’ Status

    Florida Vape Shop Wants ‘Essential’ Status

    Statue of Lady Justice with Judges Hammer on Black Board Background
    Photo: Ilkercelik | Dreamstime.com

    A vape shop owner in the US state of Florida has filed a lawsuit against local city and county governments arguing that his store should be allowed to remain open as an essential business.

    Today, Modern Age Tobacco filed a complaint and a request for injunctive relief in to the City of Gainesville and the Alachua County Board of County Commissioners, following about three weeks of back-and-forth, according to an article in The Gainesville Sun.

    Modern Age sells tobacco products, butane, vaping products and devices, CBD and hemp-based food items,and devices for the use or ingestion of medicinal cannabis. It is filing to remain open on the grounds that it provides medical services and products, natural gas and food products.

    Last month, Alachua County and the City of Gainesville ordered the closure of all “non-essential” businesses, with violators facing a second-degree misdemeanor for not following the order. Modern Age applied for inclusion as an essential business and converted to retail delivery, according to court documents.

    On April 9, police and fire officials went to the store’s retail locations and told managers the business was non-essential, the lawsuit says.

    “Modern Age will be unable to continue business operations if they continue to be regarded as a non-essential business or alternatively if they are forced to comply with defendants’ arbitrary definition of delivery,” the complaint reads.

    Modern Age’s owner, Patrick Patton, said he did not know anything about a lawsuit and referred the newspaper to attorney Nick Zissimopulos, who declined to comment.

    City Commissioner Adrian Hayes-Santos said Gainesville is enforcing emergency orders that have been ordered by the state government to protect the public health.

  • RELX Sends Relief Supplies to Customers

    RELX Sends Relief Supplies to Customers

    Courtesy: RELX

    RELX Technology announced the extension of the RELX “For You With Care” project to support its international partners during the COVID-19 crisis. RELX will initially send 78,200 masks and over 515 gallons of hand sanitizer to its global distributors, partners and store owners.

    The supplies will be sent to countries in Asia, Europe, Canada and South America. RELX will continue to follow the developments of COVID-19 globally and will send essential supplies to its partners and employees that are in need.

    “RELX is wholly committed to supporting the well-being of our employees, partners, and store owners during the COVID-19 pandemic. As a global startup, we are doing what we can to help our global community. We hope our modest donation will help them during these trying times,” said RELX founder and CEO Kate Wang.

    In late January, RELX kicked off the RELX For You With Care Project by donating RMB 1 million to the Institute of Psychology, China Academy of Science through the Shanghai Soong Ching Ling Foundation to support a training program designed to provide mental health support services.

    Courtesy: RELX
  • Avail Gives More Than 5,000 Masks to Caregivers

    Avail Gives More Than 5,000 Masks to Caregivers

    James Xu

    Avail Vapor has donated more than 5,000 masks to the Virginia Department of Emergency Management to help medical professionals on the front lines of the coronavirus battle protect themselves.

    The idea came to light a few months ago when Avail employees heard about the shortage of masks in China when Covid-19 initially struck. Avail works closely with many Chinese suppliers, and Avail employees wanted to support these suppliers in their time of need.

    Employees from around the U.S. gathered masks to donate; as a result, Avail shipped thousands of masks to its overseas partners. Now that the United States is experiencing a shortage in masks, those same Chinese colleagues have returned the generosity and shipped thousands of masks to Avail headquarters for employees and health care workers.

    “To be successful, our business has always been highly collaborative with global partners,” said James Xu, CEO and chairman of Avail, and a Chinese American. “To see our employees proactively answer a need for their Chinese counterparts was special. Now we are so grateful to our Chinese friends for helping us defend our citizens in this pandemic.”

    In addition, Avail has implemented new programs to help its customers during this unprecedented time. Since March 18, 2020, Avail customers who are burdened with a financial impact from Covid-19, as well as those in the medical community or who are first responders, have been eligible for a one-time purchase of select e-liquids for a penny ($0.01 transactional fee plus applicable taxes). Avail is also offering call-ahead and curbside pickup at all retail locations, as the health, safety and well-being of its staff and customers is paramount.

    Avail employs more than 350 people across the U.S. The company has committed to compensate staff for work time lost due to Covid-19 or influenza. In addition, if employees need further financial assistance, they can apply through the Xu Fund, a special employee assistance fund dedicated to supporting Avail staff in the event of personal and family hardships. CEO and Chairman Xu donates 100 percent of his salary to support the fund. Since 2018, the Xu Fund has helped 90 Avail employees.

  • U.K. Vape Shops Closed; Factories, Online Sales Remain Open

    U.K. Vape Shops Closed; Factories, Online Sales Remain Open

    Credit: VPZ

    The U.K. Vaping Industry Association (UKVIA), the country’s largest trade body representing the vapor sector, has moved to reassure vapers and smokers that the industry is still very much “open for business” despite the closure of shops following the government’s lockdown.

    In addition to online retailers and manufacturing facilities operating as usual, physical store owners are focusing on ramping up their e-commerce operations via their websites, with others setting up home delivery services.

    “Vaping businesses are by nature extremely entrepreneurial and agile and a number are repurposing their business models to continue to serve their customers,” said John Dunne, a director at the UKVIA. “Specialist online retailers are also reporting significant increases in demand during the lockdown.”

    “It is critical during these highly stressful times that vapers have access to vape products to prevent them from taking the backward step and reverting to smoking. Likewise, it enables smokers looking to quit to switch to vaping.

    “The UKVIA has published a list of its retail members who provide online and home delivery services so that vapers and smokers can simply access vape devices and e-liquids during the lockdown period.”

    The UKVIA has issued a guide to coronavirus for all its members that not only provides government guidance but also highlights a range of best practice health and safety measures to implement in the workplace to ensure the wellbeing of workers and customers.

  • U.K.’s Largest Vape Retailer Closing After Covid-19 Warnings

    U.K.’s Largest Vape Retailer Closing After Covid-19 Warnings

    VPZ, the UK’s largest retailer, has closed all its 155 nationwide stores as of Tuesday, March 24th. The company had expected the country to implement measures similar to those in other European nations by keeping vaping retailers open, however, were forced to announce the closures after the Government failed to clarify its view on vaping stores.

    The company confirmed plans late on Monday evening, following the Prime Minister’s announcement, by informing all staff of its decision. Doug Mutter, director of Compliance and Manufacturing said the company was disappointed with the lack of clarification from the Government regarding where vaping retailers stand.

    “Other European nations had recognised the work vaping specialists do in reducing the stress on health services and kept the local stores open,” he said in a release. “We had expected this to be the case and had begun investing in new processes in order to manage our business in such an environment. However without sufficient clarification and in the interest of keeping our staff and customers safe we have taken the decision to close all 155 stores as of Tuesday for the next three weeks.”

    The firm had expected that the UK would follow the likes of Spain, Italy and Switzerland in allowing vaping retailers to remain open in an attempt to prevent smokers from moving back from vaping to smoking.

    “We have been advised by both the UK Government and WHO that smoking has a hugely detrimental impact when coupled with COVID-19,” Mutter said. “We as business have a duty of care to help people protect themselves, and to ensure our staff and customers are kept safe. That is why we have so far kept all of our stores open.”

    The company has pointed customers and smokers to its website where it will be operating as “business as usual” for any customer looking for vaping products, according to Mutter. “Whilst the stores being forced to close is a blow to many customers who enjoy our personalised in-store service, our online presence will be running as normal where customers can buy and get products delivered straight to their door. Staff communications was sent on Monday evening confirming the move and advising all mainline staff that they will be paid their full salary for the duration of their time off.

    “We know that this is a stressful and difficult time for all our staff so rather than wait for the Government to confirm plans we have taken the decision to close all stores and went above and beyond the Government’s 80% commitment and ensure our staff are paid 100% of their salary during the three week lockdown.”

  • Largest Vape Shop Chain in Britain Remains Open During Covid-19 Crisis

    Largest Vape Shop Chain in Britain Remains Open During Covid-19 Crisis

    Britain’s largest vaping chain has vowed to keep its shops open amid the coronavirus crisis to stop ex-smokers turning back to cigarettes and is urging the Government not to close vape retailers in a lockdown.

    VPZ, which has 155 outlets across the UK, said Britain must follow the lead of countries such as Italy and Spain by ensuring that vaping stores join the list of essential shops allowed to stay open in the event of a total lockdown, according to a story in the dailymail.

    The Edinburgh-based group said ex-smokers could be put at significant risk of complications with Covid-19 if they end up relapsing on cigarettes because they are unable to buy vaping products.

    This could put the NHS under unnecessary extra strain, VPZ said.

    Scientists and health experts have warned that smoking cigarettes increases the risk of serious illness caused by coronavirus, because smokers already have weakened lung defences and may also have existing lung conditions.

    A study published in the New England Journal of Medicine found that smokers were around one-and-a-half times more likely to progress to the severe stage of coronavirus than non-smokers, the story states.

    Doug Mutter, director of manufacturing and compliance at VPZ, said, “We know we have a lot of elderly customers and many of them can’t do a big stockpile – we don’t want them to have no option and end up back on cigarettes, because that’s what’s available to them.

    If the vaping industry can play a part in reducing the pressure on the NHS by continuing to operate in some way, shape or form and allow the vaping population to buy their products, we’ll do our utmost to do what we can.”

    The company is putting in place extra measures to help protect its 450 staff from the coronavirus, by increasing cleaning within its stores, removing all tester and sampling devices for customers, and introducing a customer limit within stores, according to the story.

    VPZ is also trialling a local delivery service near its head office in Edinburgh for older customers unable to get online, where they can place orders over the phone and store staff will drop them off at their doorstep.

    It is hoping to roll this out further across the UK if it proves successful, the story states.

    “We have seen in Italy, Spain and France that vaping retailers are to remain open, even during the height of the crisis,” Mutter said. “We are working immensely hard behind the scenes to ensure all of our 155 stores will be open, as well as providing additional delivery services for those who are self-isolating or for whatever reason are unable to access our products, and support.”

  • Vape Shop Inspections Suspended by U.S. FDA Due to Covid-19 Concerns

    Vape Shop Inspections Suspended by U.S. FDA Due to Covid-19 Concerns

    The U.S. Food and Drug Administration (FDA) has ended activities such as domestic compliance checks and vape shop inspections, the health regulator said, as its staff switch to teleworking amid the fast-spreading coronavirus outbreak.

    The health regulator has been scaling back domestic and foreign inspections in the wake of the outbreak, which has infected more than 227,700 people across 175 countries, based on a Reuters tally, according to a story on Reuters.com.

    In the United States, the virus has infected over 10,000 people and caused 150 deaths, according to the U.S. Centers for Disease Control and Prevention.

    The FDA has already temporarily deferred all domestic routine surveillance facility inspections and postponed most foreign inspections through April.

    Although the inspections stop immediately, administrative work can continue for two weeks, the FDA’s Center for Tobacco Products said