Tag: e-cigarettes

  • China to Start Consumption Tax Nov. 1 for Vapes

    China to Start Consumption Tax Nov. 1 for Vapes

    Credit: Peangdao

    China’s Ministry of Finance will impose a consumption tax on e-cigarettes sold in China from Nov. 1, according to a notice published on Tuesday.

    The taxation policy will further entrench China’s once-scattered e-cigarette industry into the country’s state-backed tobacco monopoly, a major generator of tax revenue for the country, according to Reuters.

    According to the Ministry of Finance, a tax rate of 36 percent will be placed on the production or import of e-cigarettes, while an 11 percent tax will be placed on the wholesale distribution of e-cigarettes.

    Experts said that the annual sales revenue of domestic e-cigarette makers is about RMB20 billion ($27.36 billion), so the tax may contribute an additional RMB10 billion to the government’s annual revenue, according to The Global Times.

    China has long been the world’s largest producer of e-cigarettes, though consumption lags behind that of Western countries.

  • Mexico Invents Aerosol Test for Vapes ‘Since None Exist’

    Mexico Invents Aerosol Test for Vapes ‘Since None Exist’

    Credit: Niyazz

    A health regulatory body for Mexico’s government says its scientists have developed a new methodology to analyze the aerosols in electronic nicotine-delivery systems (ENDS) because “no one else has come up with one.” The sale of ENDS products was banned in Mexico in June.

    Final results of a new analysis of ENDS products using the new method will be published in scientific journals in the coming months, according to Cofepris chief Alejandro Svarch, who added that the “pioneering methodology” developed in Mexico will be of interest to health authorities in other countries.

    Aerosol testing has been performed on vaping products since at least 2014 in other countries, such as the U.S. and the UK. Svarch offered no explanation on how Mexico’s new testing method is performed or why it is effective or why other methods were not effective, only that a testing method “did not exist.” There was no mention of what products were tested or at what temperatures.

    He said an analysis using the exclusive method by health regulator Cofepris detected “30 undisclosed substances in aerosols inhaled” via ENDS products.

    Linalool, which can be used as an insecticide, was one of the substances detected, Svarch said during Mexican President López Obrador’s press conference last week.

    “This in itself is an enormous deception of consumers, who trust that the product is less harmful than a conventional cigarette, because it [supposedly] only has flavorings and nicotine, when in fact, it has other kinds of substances or ingredients that are highly dangerous for humans,” Svarch said.

    Among the “hidden” ingredients that “producers of vaping devices don’t want us to know about,” he said, are dimethyl ether, benzyl alcohol, ethyl propionate, isoamyl acetate, butyl acetate and methyl cinnamate.

    Svarch also presented a song commissioned by Cofepris (song starts at 1:40) that warns of the risks of vaping and advises ENDS users to “give up now.”

    Among the cautionary tales offered via the song’s lyrics are the cases of a woman who lost three teeth due to vaping and a handsome man who became known as “burnt face” because his “beloved vape” exploded while he was using it, according to media reports.

  • Juul Labs Talking Bailout With Long-Term Investors

    Juul Labs Talking Bailout With Long-Term Investors

    Juul Labs is discussing a bailout with two long-term investors to help stave off bankruptcy, reports The Wall Street Journal, citing unnamed sources.

    Hyatt Hotels heir Nick Pritzker and California investor Riaz Valani are reportedly considering putting up money to cover the vaping company’s operations and near-term legal liabilities. Valani and Pritzker were Juul’s largest shareholders before Altria Group in 2018 bought a 35 percent stake in the company for $12.8 billion, according to The Wall Street Journal sources.

    The goal of the bailout would be to help Juul stay in business and pursue a dispute with federal regulators over whether Juul products can remain on the U.S. market. Once the undisputed leader in the domestic vaping market, Juul Labs has struggled in the face of regulatory scrutiny and legal challenges over its marketing practices.

    On June 23, 2022, the Food and Drug Administration rejected Juul Labs’ premarket tobacco product application and ordered the company to remove its products from the market. Juul appealed and on July 5, the FDA stayed its marketing denial order (MDO), announcing that it would review the decision after determining “there are scientific issues unique to this application that warrant additional review.” 

    On Oct. 21, Juul Labs published the details of its MDO appeal.

    The uncertainty around the FDA ban has made it difficult for Juul to secure financing for legal settlements. Juul has been searching for an alternative that could avoid a bankruptcy filing. Earlier this month, Juul began discussions with lenders for financing that would carry the company through a potential Chapter 11 filing.

    In a statement to The Wall Street Journal, Juul said it continues to explore several strategic options to secure its business and address the impact of the FDA’s stayed order “as we fight to preserve our mission of transitioning adult smokers away from cigarettes while combating underage use.”

  • RELX Again Warning Consumers of Fake Goods

    RELX Again Warning Consumers of Fake Goods

    RELX is again warning consumers in the Philippines against buying counterfeit e-cigarettes that are being offered in markets. The use of fake vaping products may result to serious health consequences, warns the company.

    Through one of its initiatives, RELX has already had more than 100,000 illicit e-cigarette products removed from the market to date, emphasizing the massive reach of these unregulated goods, according to media reports.

    The e-cigarette manufacturer’s statement also comes after it successfully won a court case in China against a company which infringed on the registered design of one of RELX’s high-selling products, RELX Essential.

    “Preventing the production and sale of counterfeit e-cigarette products is one of the main challenges currently facing the e-cigarette industry. Counterfeit e-cigarette products pose serious potential health risks to consumers,” said Patrick Drilon, RELX International head of External Affairs – Philippines.

    “While governments and local authorities work to implement stronger enforcement methods to rid the market of these harmful products, international e-cigarette companies can and should do more to aid them in this global fight to offer consumers products that abide by safety standards by undergoing stringent quality checks.”

  • Juul Labs Publishes its MDO Administrative Appeal

    Juul Labs Publishes its MDO Administrative Appeal

    Photo: Juul Labs

    Juul Labs has published its administrative appeal of the marketing denial order (MDO) issued by the Food and Drug Administration, which explains the company’s position, based on science and evidence, that the MDO was substantively and procedurally flawed. This appeal, referred to as a 10.75 appeal, is currently under review by the FDA. 

    In its press release for the MDO, the FDA stated that Juul Labs’s premarket tobacco product applications (PMTAs) “lacked sufficient evidence regarding the toxicological profile of the products” and that some of the “study findings raised concerns due to insufficient and conflicting data.”

    Juul Labs believes that each of the deficiencies in the MDO is based on an incorrect and incomplete assessment of the data and, when the data are appropriately evaluated within the PMTAs, the FDA can properly assess the toxicological profile of Juul products and relative to other tobacco products including combustible cigarettes. The appeal also shows that all perceived limitations could have been resolved by clarifications through the usual, iterative process that the FDA has followed for prior applications. 

    Through its 10.75 appeal, Juul Labs requests that the MDO be rescinded and its PMTAs be placed back into substantive review so that the FDA can complete a full and fair review to determine whether the Juul System is appropriate for the protection of public health. “We believe that once the FDA does a complete review of all of the science and evidence presented in the applications, without political interference, as required by law, we should receive marketing authorization for our products,” Juul Labs wrote in a press note.

    For context: In July 2020, Juul Labs submitted PMTAs to FDA for its currently marketed products and a new device with age-verification technology. The PMTAs included over 125,000 pages of data, information, and analysis from over 110 scientific studies across nonclinical (75+ studies), clinical (14 studies), and behavioral (21 studies) research programs to support the marketing of Juul products. The company also assessed its products relative to combustible cigarettes, an FDA-authorized heated tobacco product (IQOS), and other marketed vapor products.

    Despite this science and evidence, on June 23, 2022, FDA issued a MDO for Juul Labs’ PMTAs. On July 5, FDA stayed the MDO, announcing, on its own, that it would review the decision after determining “there are scientific issues unique to this application that warrant additional review.” 

    A summary of the Juul Lab’s responses to what the company believes are the deficiencies of the MDO is available here.

  • Philippines Begins Consultation on New Vape Law

    Philippines Begins Consultation on New Vape Law

    Photo: BillionPhotos.com

    The Philippines Department of Trade and Industry (DTI) will begin consulting the public for the crafting of the implementing rules and regulations (IRR) of the country’s new vape law today, reports ABS-CBN News

    “For private stakeholders who have an interest on the crafting of the IRR, they are included, and we will consider all inputs or all comments that were sent,” said DTI Undersecretary Ruth Castelo.

    The Philippines’ Vaporized Nicotine Products Regulation Act governs the importation, manufacture, sale, distribution and use of vape products. Among other measures, it calls for lowering the vaping age to 18 from 21.

    The DTI was tasked to craft the IRR, following the transfer of the regulation of vapes from Food and Drug Administration. 

    The proposal was submitted to the Presidential Palace on June 24, days before then-President Rodrigo Duterte stepped down from office. Because the executive branch did not act on it within 30 days, the proposed legislation lapsed into law in July.

  • Scientists Identify Nicotine-Degrading Gut Bacteria

    Scientists Identify Nicotine-Degrading Gut Bacteria

    Photo: Paulista

    Chinese and U.S. scientist have identified a bacteria in the human stomach that can degrade nicotine, reports the Xinhua News Agency, citing a new study published in Nature.

    A colony of gut bacteria was found to have reduced intestinal nicotine concentrations in nicotine-exposed mice. 

    Nicotine is known to activate an intestinal molecule called AMPKα. These molecules contribute to the progression of non-alcoholic fatty liver disease (NAFLD), according to the study. 

    The authors suggest that Bacteroides xylanisolvens can help reduce smoking-exacerbated NAFLD progression.

    The study involved researchers from Peking University, Zhejiang University, Fudan University, the First Affiliated Hospital of Wenzhou Medical University and the U.S. National Institutes of Health.

  • Smoore Showcases Feelm Max at Jakarta Exhibition

    Smoore Showcases Feelm Max at Jakarta Exhibition

    Photo: Smoore

    Smoore presented its Feelm Max disposable technology solution at the Indonesia Electronic Atomization Exhibition (IECIE2022), which took place at the Jakarta International Convention and Exhibition Center.

    Speaking at the exhibition, Smoore Vice President Clayton Shen highlighted the importance of technological innovation in driving progress in the vaping industry.

    Feelm Max features a ceramic coil technology that offers more puffs and consistent flavor, according to a company press release. It is currently sold in more than 10 countries, including the United States and the United Kingdom. Other features include a semi-translucence mouthpiece and to environmentally friendly packaging.

    During his presentation of the Feelm Max, Clayton Shen explained that the closed system is the fastest growing category in the new tobacco market and will claim a significant market share in the long run.

    According to Smoore, ceramic coils solve longstanding challenges such as liquid leakage and burnt taste, Ceramic coils, said Shen, are used by leading vapor product manufacturers, such as Reynolds Vapor Co., RELX and NJOY.

    One of the most influential exhibition platforms for companies operating in the vaping sector, the IECIE covered an area of over 12,000 square meters in Jakarta, with over 100 exhibitors and more than 10,000 visitors.

    In recent years, Southeast Asia has become a new industry hub by virtue of its population base and market development potential. Euromonitor expects the Southeast Asian vaping grow by 29 percent in 2023.

  • Irish Minister: Disposable Vapes ‘Worsen the World’

    Irish Minister: Disposable Vapes ‘Worsen the World’

    Credit: Schankz

    Single use vapes have been described as “worsening the world” amid plans for their ban by Minister for State Ossian Smyth.

    The Minister stated that single use disposable vapes could be banned under the Circular Economy Act or the single use plastic directive.

    However, Smyth said that a ban would not come into effect before consultations with the general public and sellers took place. He told listeners on RTE’s Morning Ireland that vapes had now become the default option for smokers, as they are typically half the cost of cigarettes.

    “If you were at the Electric Picnic festival earlier this summer, you would’ve seen these brightly coloured tubes all over the ground,” he said. “They’re everywhere and they are an innovation that has made the world a worse place.”

    The Green Party politician also admitted that a complete ban would be unlikely as people would still attempt to purchase single use vapes online. However, he reassured listeners that it would “massively reduce” their purchase and ultimate benefit public health.

  • Vuse Market Share Over Juul Grows to 12 Percent

    Vuse Market Share Over Juul Grows to 12 Percent

    Credit: Jet City Image

    The Vuse brand e-cigarette has expanded its market-share lead over Juul to 12 percent in the latest Nielsen analysis of convenience-store data.

    The analysis, released Tuesday, covers the four-week period ending Oct. 8. Vuse’s market share rose from 39.7 percent in the previous report to 40 percent, compared with Juul declining from 28.1 percent to 28 percent.

    Vuse also increased its year-over year advantage from 32.9 percent to 32.7 percent in the previous report to 33.6 percent to 32 percent.

    According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen, according to the Winston-Salem Journal.

    In recent months, the shadow of a potential banning of Juul Labs Inc.’s e-cigarettes from U.S. retail shelves has accelerated the market-share gains of Vuse.

    Meanwhile, No. 3 NJoy was unchanged at 2.8 percent, while Fontem Ventures’ blu eCigs was unchanged at 1.4 percent.

    Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to an 18 percent decline in the latest report.

    By comparison, Reynolds’ Vuse was up 42 percent in the latest report, while NJoy was up 5.9 percent and blu eCigs down 30.9 percent.