The Tax Free World Association (TFWA) has canceled the 2020 TFWA World Exhibition and Conference scheduled for Sept. 27 to Oct. 2 due to the impact of the coronavirus outbreak.
The TFWA board and management committee took into account the continuing uncertainty surrounding the travel and health situation as well as the worldwide fall in industry activity.
“By agreeing significant reductions to space rental fees, making changes to the format and working with our partners in Cannes to reduce the cost of taking part in the event, we did what we could to attempt to ensure the TFWA World Exhibition and Conference could take place,” said Alain Maingreaud, TFWA president.
“Since making those changes, we have monitored the situation daily and been in constant contact with our members and partners. The way in which the situation has developed with the economic impact of the crisis becoming increasingly serious amid continuing uncertainty over restrictions on travel has forced us to review our plans.
“The management committee was unanimous in its decision to cancel the 2020 edition and in its desire for the association’s events to play a central role in the industry’s recovery from 2021.
“The cancellation of TFWA World Exhibition and Conference will have a significant impact on the association’s finances, but thanks to the sound management of our resources up to now, we have been able to build reserves to help us cope with difficult periods such as this.
“We remain determined to do all we can to help our industry emerge from its most difficult period, keep our members and partners informed and help coordinate our industry’s response to the current crisis.”
The disruption caused by the coronavirus will be felt for a long time even in the traditionally recession-resilient tobacco industry, according to a new report made available by Research and Markets.
“This report examines the outlook for the coronavirus (Covid-19) global pandemic on the tobacco industry,” according to Businesswire. “The social, economic and health effects of the Covid-19 crisis will be felt in every global market for several years to come. While it is the case that the tobacco industry is less dramatically impacted in the near term in most (though not all) world markets, the temptation to treat the pandemic as a short period of disruption before a return to normalcy should be avoided.”
The report covers the economic outlook, industry impact, geographic impact and the corporate response to the pandemic.
The Mexican government is not reporting hundreds, possibly thousands, of deaths from the coronavirus in Mexico City, dismissing anxious officials who have tallied more than three times as many fatalities in the capital than the government publicly acknowledges, according to officials and confidential data reviewed by Azam Ahmed of The New York Times.
The tensions have come to a head in recent weeks, with Mexico City repeatedly alerting the government to the deaths, hoping it will come clean to the public about the true toll of the virus in the nation’s biggest city and, by extension, the country at large.
But that has not happened.
Doctors in overwhelmed hospitals in Mexico City say the reality of the epidemic is being hidden from the country. In some hospitals, patients lie on the floor, splayed on mattresses. Older people are propped up on metal chairs because there are not enough beds, while patients are turned away to search for space in less-prepared hospitals. Many die while searching, several doctors said.
“It’s like we doctors are living in two different worlds,” said Dr. Giovanna Avila, who works at Hospital de Especialidades Belisario Domínguez. “One is inside of the hospital with patients dying all the time. And the other is when we walk out onto the streets and see people walking around, clueless of what is going on and how bad the situation really is.
Mexico City officials have tabulated more than 2,500 deaths from the virus and serious respiratory illnesses that doctors think are related to Covid-19, the data reviewed by The Times shows. Yet the federal government is reporting about 700 deaths in the area, which includes Mexico City and the municipalities on its outskirts.
The government says Mexico has been faring better than many of the world’s largest countries, and on Monday its Covid-19 czar estimated that the final death toll would be around 6,000 people.
In order to increase the number of guests who stay in isolation and quarantine, the U.S. city of San Francisco’s city leaders and health officials say they are meeting homeless people where they are, according to abc7news.com. In some cases, that includes the distribution of some alcohol, tobacco and marijuana to those in quarantine.
The San Francisco Department of Public Health tells ABC7 News the alcohol and tobacco is funded by private donations. Also that DPH staff store and administer the substances under the guidance of licensed physicians.
“Our behavioral health experts are offering services every day, medication assisted treatment including nicotine and opiate replacement, behavioral health counseling and in cases where people decide that they are going to continue to use, our focus is using the best evidence to help people manage their addictions,” said Dr. Grant Colfax, San Francisco’s Public Health Director.
DPH tells ABC7 News that in a few cases, DPH staff have helped patients buy their own medical cannabis but that they do not facilitate purchases of recreational cannabis. Also that any staff member who does not wish to distribute these substances to guests may opt out of doing so.
No “safe injection” or “supervised consumption” is part of the isolation and quarantine sites according to DPH.
San Francisco Police Chief William Scott says police are enforcing drug laws in the Tenderloin, where some have been taking advantage of those who are vulnerable.
“We’ve made arrests in encampments we’ve seen people go in with bags of drugs and distribute them to others to sell in these encampments and we’ve arrested those people. We’ve confiscated their money, we’ve confiscated their drugs and we will continue to do that.”
DPH says the distribution of alcohol and tobacco to those in quarantine is not unique to San Francisco.
In New Zealand, Ben Pryor, co-owner of Alt New Zealand and Vapo, has seen a 30 percent rise in the sale of vapor device starter kits through the companies’ online stores.
With the outbreak of Covid-19 and the following lockdowns, traditional cigarette sales seem to have gone down, and many smokers are turning to vaping.
“There are a few things at play here. People are quitting cigarettes because of their sheer cost and the increasing pressure many household budgets are now under. At the same time, the threat of Covid-19 has made many smokers more cognizant of their respiratory health and smoking’s secondhand effects on others in their bubble,” Pryor said.
The lockdowns caused 11 Vapo stores to close, negatively affecting the company. But the upswing in online sales has helped temper that. “We’ve really noticed a big increase in our Alt and Vapo Haiz starter kit sales,” Pryor said. “Our call center is reporting that many smokers are using this time to quit tobacco so are seeking advice and turning to considerably safer and cost-effective vape products more than ever.”
Recent studies that have found a disproportionally low number of smokers among Covid-19 patients have not provided direct evidence that smoking is protective against the illness, according to Health Feedback, a nonpartisan, nonprofit organization dedicated to science education.
Claims that smoking might protect against Covid-19 have been reported in several media outlets and are currently going viral, with more than 410,000 interactions on Facebook in April 2020.
However, the Health Feedback scientists point out several problems with findings. A French study, for example, did not appropriately factor in comorbidities such as diabetes and hypertension, which can also adversely affect the clinical course of Covid-19, according to the Health Feedback scientists.
“While the preprint did report the prevalence of such conditions within the combined study cohort of inpatients and outpatients, it did not report age or disease prevalence according to smoking status,” they wrote. “It is therefore unclear whether the nonsmoking group comprised more older individuals and/or those with preexisting health conditions than the other, which might have influenced the results.”
Other studies showed similar shortcomings, according to the Health Feedback scientists.
While acknowledging that the findings of disproportionally low numbers of smokers among Covid-19 patients are interesting and deserving of further investigation, the Health Feedback scientists say it would be unwise to begin smoking based on unproven claims that it might protect against Covid-19.
According to researchers in Spain from the Universitat Oberta de Catalunya, men are dying from Covid-19 at twice the percentage rate of women in Spain because men have a higher smoking prevalence rate than women in the country.
The researchers’ findings, which can be found in the journal Tobacco Induced Diseases, noted that smoking tobacco can upregulate the angiotensin-converting enzyme 2 (ACE2), which Covid-19 uses as a cellular entry receptor by joining itself to ACE2 receptors in the lower respiratory tract of infected individuals to gain access to the lungs.
The researchers confirm that “existing data suggests that patients with COPD, or chronic obstructive pulmonary disease, or who smoke have a higher risk of becoming more seriously ill from Covid-19, since it increases ACE2 expression in weaker airways, which this type of patient has.”
Covid-19 has disrupted the vapor product supply chain.
By Michael MacGrady
The global economy is reeling as industries in virtually every field are suffering the challenges brought on by the unprecedented outbreak of the novel coronavirus and the spread of Covid-19. According to a report published by ECigIntelligence.com in February 2020, manufacturers of vapor products and components are relying on reduced workforces and coping with product shortages, which in turn is affecting product accessibility around the world.
Shenzhen, China, is the manufacturing capital for the international e-cigarette industry. At press time, Covid-19 cases worldwide nearly topped 719,000, according to the World Health Organization (WHO). Alarmingly, the number of deaths has exceeded 33,000, with the outbreak epicenters moving westward to Europe, Latin America and North America.
Also, at the time of writing, data from China revealed a slowing of deaths and new cases as the metropolises of Wuhan, Guangzhou, Hong Kong, Shanghai and Shenzhen slowly resumed manufacturing in what seems to be an entirely new world for international commerce. However, even then, these cities were shadows of their previous selves as bustling centers of industry and commerce.
Photo: Timothy S. Donahue
“Workers are slowly returning, but the situation remains literally unchanged,” said Dimitris Agrafiotis, executive director of the Tennessee Smoke Free Association and the chief executive of Global eVapor Consulting. According to Agrafiotis, the international vapor industry is now in a bind that cannot be dealt with in the same way as a regulatory challenge or a change in the international market.
“There is not enough staff to get production lines up to speed, and the limited workforce is trying to catch up to back orders, especially for consumables like coils and pods,” Agrafiotis said, adding that the industry will remain in dire straits, facing considerable challenges such as the looming compliance deadlines in the United States.
“Currently, most factories are operating well below 10 percent of their usual capacity,” said Agrafiotis. According to him, China’s central government has done what it can to control the spread of the new virus in a heavily concentrated industry city like Shenzhen.
One of the biggest challenges will be to restaff the factories that feed the international demand for e-cigarettes and their components. Workers at these plants, Agrafiotis added, migrate from remote villages to work in Shenzhen and make a living in high-tech manufacturing. That is one of the most efficient ways to transmit the coronavirus, according to Agrafiotis. The lockdown of Chinese citizens, along with restrictions on nonessential employees, has indefinitely upended the migratory flow of workers to manufacturing hubs such as Shenzhen.
Pandemics are inherently disruptive. Analyzing a model global influenza pandemic, researchers from the London School of Hygiene and Tropical Medicine, the University of Antwerp and Oxford Brookes University predicted that an international pandemic could result in extensive unemployment, thus impacting production and consumption.
Photo: Timothy S. Donahue
Covid-19 is no different, once you consider the events of forced business closures and modified operations. Virtually all countries have implemented policies to prevent a spread of the virus. U.S. state governments are issuing shelter-in-place orders for citizens in highly populated areas while also placing restrictions on the number of employees allowed in an office at a time. Needless to say, such policies stunt labor activity.
The restrictions in China go even further. “My sources in China have told [me] they do not anticipate things to return to normal until mid to late June, causing a huge disruption in the chain of products and release of new technology,” said Agrafiotis.
The outbreak comes at a time of already tense relations between the world’s largest manufacturer of vapor products, China, and the largest consumer of e-cigarettes, the U.S. Rather than cooperating in the coronavirus crisis, the two superpowers have unhelpfully been blaming each other for the outbreak.
Doug Barry, a spokesperson for the U.S.-China Business Council, believes that this is a critical period for the bilateral trade relationship. “The most optimistic report is that the epidemic will knock about 1 percent off of GDP for 2020,” he said. “U.S. companies with operations in China are likely to see lower revenue for the year.” Encouragingly, however, Barry said the council had seen no evidence of a rush for the exits by U.S. and other foreign companies.
“Our members are in China for the long term and see it as a strong market going forward,” said Barry. “That said, some companies are prudent to look at some diversification in their supply chains, but China’s role as a key player is unlikely to change because of the emergence of this new virus.”
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.
France has banned the online sale of nicotine products and limited their sale in pharmacies, after researchers suggested that nicotine may play a role in protecting against coronavirus.
The new rules cover products like nicotine gum and patches, designed to help people stop smoking. Last week, data from a Paris hospital indicated that smokers were statistically less likely to be admitted for treatment for Covid-19, according to an article on BBC.com.
Trials are set to continue in France.
France has reported nearly 22,000 coronavirus-related deaths since the start of the outbreak earlier this year. The authorities are planning to gradually lift the lockdown from 11 May.
What are the new nicotine restrictions? The French government says people will only be allowed to buy one month’s supply of these products. The aim is to stop people putting too much nicotine into their bodies, in the hope of protecting themselves against coronavirus, and also to protect the supply for people who need it, says the BBC’s Lucy Williamson in Paris.
What’s the background to this? The run on nicotine products was sparked this week after researchers noticed the low number of smokers among those hospitalised with Covid-19. The theory that nicotine could play a role in blocking the virus is due to be tested at a hospital in Paris, using nicotine patches.
The government’s chief health official said the study was interesting but warned that smoking killed 75,000 people a year in France. The official also warned that smokers who did become infected with coronavirus tended to have more serious symptoms.
