Tag: e-cigarettes

Altria Reaches Deal With PMI for IQOS Transition

Credit: Naka
Philip Morris International will pay Altria Group approximately $2.7 billion for the exclusive U.S. commercialization rights to the IQOS tobacco heating system effective April 20, 2024.
“We remain committed to creating long-term value through our Vision,” said Altria CEO Billy Gifford in a statement. “We believe that this agreement provides us with fair compensation and greater flexibility to allocate resources toward ‘moving beyond smoking.’”
In 2013, Altria entered into a series of agreements with PMI related to innovative tobacco products, which included exclusive U.S. commercialization rights of Altria subsidiary Philip Morris USA to the IQOS system. PM USA’s commercialization rights were subject to an initial five-year term, which began when the system received authorization from the U.S. Food and Drug Administration in April 2019 and continued through April 2024.
As part of the 2013 agreement, PM USA had the right to maintain exclusive U.S. commercialization rights upon achieving an initial milestone by April 2022. Upon achieving additional milestones, PM USA had the option to renew for an additional five-year term through April 2029.
While Altria believed it has achieved the required milestones, PMI disagreed. The parties were unable to reach a long-term agreement and decided to enter into the agreement to transition and ultimately conclude their relationship.
Altria received a $1 billion from PMI upon entry into the agreement. Under the terms of the deal, PMI is obligated to make an additional payment of $1.7 billion (plus interest) by July 2023 for a total cash payment of approximately $2.7 billion (pre-tax). Altria expects to use the cash proceeds for several items, which may include investments in pursuit of its vision, debt repayment, share repurchases and general corporate purposes. Share repurchases, Altria said, depend on marketplace conditions and other factors and remain subject to the discretion of its board of directors.
Altria expects to record the $2.7 billion pre-tax transaction amount as a deferred gain on its consolidated balance sheet in the fourth quarter of 2022. This gain will be recognized in earnings when the company assigns its rights to the IQOS system.
IQOS and Marlboro HeatSticks are currently unavailable for sale in the U.S. due to orders imposed by the U.S. International Trade Commission that prohibit importation of IQOS and Marlboro HeatSticks into the U.S. relating to a patent dispute. PMI remains responsible for manufacturing the IQOS system and Marlboro HeatSticks and targets resumption of product supply in the first half of 2023.
If supply of FDA-authorized product is available to Altria before May 2024, PM USA has the option to reintroduce the IQOS system and Marlboro HeatSticks for sale in the U.S. On April 30, 2024, U.S. commercialization rights to the IQOS system will transition to PMI. PMI will not have access to the Marlboro brand name or other brand assets, as PM USA owns the Marlboro trademark in the U.S.
In a press note announcing the IQOS transition, Altria said it remains committed to its vision to responsibly lead the transition of adult smokers to a smoke-free future. “We believe in a portfolio approach to tobacco harm reduction and expect to compete in the major smoke-free categories. We have reinvested into our internal product development system and we expect to finalize designs for two smoke-free products, including a heated tobacco product, by the end of 2022,” the company wrote.
October 20, 2022
WVA Launches Vaping Campaign in Czech Republic

Credit: Rawf8
The World Vapers’ Alliance (WVA) launched its European campaign to back vaping and beat smoking in Prague, Czech Republic, to encourage politicians to support vaping as an effective harm reduction tool.
As a part of the campaign, WVA delivered the Vaping Products Directive to the Minister of Health in the Czech Republic. The global advocacy group for vapers’ rights hosted a protest art installation in the city center of Prague with the message “Don’t Let 19 Million Lives Fall.” The installation displayed a set of falling dominoes that represent lives fallen from smoke-induced illnesses, according to a release.
“Every year, more than 700,000 people in Europe and 17,000 in the Czech Republic die from tobacco-smoking illnesses. These are catastrophic numbers if we think about how many lives could be saved by consumer-friendly vaping regulations. Therefore, we hope the Czech government further increases its commitment towards harm reduction,” said Michael Landl, director of the WVA. “The Czech government also needs to push back against attacks on vaping and other less harmful alternatives on the EU level. Our #BackVapingBeatSmoking campaign serves to raise awareness that 19 million lives in Europe could be saved if we embrace vaping as a powerful tool to quit smoking in the Czech Republic and on the EU level.”
Along with the installation, WVA hosted a round-table discussion with the Czech experts and media representatives on the future of harm reduction in the Czech Republic. Michal “Godwin” Zrdazil, the founder of Spolek Nekuraku and WVA partner, said the situation around tobacco smoking in the Czech Republic is still worrying.
“Smoking numbers are one of the highest in Europe. But as vapers, we encourage the government to commit to tobacco harm reduction even more,” Nekuraku said. “Vaping has proven to be the most successful aid in helping people quit cigarette smoking and should be the cornerstone of the national harm reduction strategy against tobacco smoking,”
WVA’s “Back Vaping, Beat Smoking” campaign has already been launched in France and Poland and will extend to Italy, Portugal, and Belgium in the coming weeks. WVA is also running a public petition to call on the European legislators to embrace vaping as a smoking cessation aid on the EU level. The petition is available at www.worldvapersalliance.com/back-vaping-beat-smoking.
October 20, 2022
Third Time a Charm for Vape Ban in Nashville Bars

Credit: Adriano CZ
It still has another step. However, Nashville, Tennessee’s, Metro Council passed a law to prohibit smoking and vaping products in Nashville bars and venues on its third reading Tuesday night.
The rule overwhelming passed with 30 votes in approval and four against. One council member abstained from the vote, according to media reports. There will be one more vote to approve passage of the ordinance, however, the large amount of support for the ordinance almost guarantees it will become law.
The law, BL2022-1383, was deferred at Metro Council’s meeting on Sept. 20 due to a late-filed amendment that would protect vapor bars that generate direct revenue from the on-site sale of vapor products and accessories related to this use.
The law was then amended and passed on second reading as amended at Metro Council’s meeting on Oct. 4. Tennessee law previously allowed smoking in 21 and up bars at the owner’s discretion. If the rule passes, it wouldn’t go into effect until March of 2023 to give businesses time to adjust.
The council said they are not permitted to prohibit smoking or vaping at establishments that are specifically cigar bars, tobacco retail stores and vape retail stores due to state law. A law passed by the Tennessee General Assembly last year gives local governments the authority to prohibit the use of tobacco products on public property by ordinance.
October 19, 2022
British Columbia, Juul Labs Litigation to Proceed

Photo: niroworld
The Supreme Court of British Columbia has dismissed an application from Altria Group to stay or dismiss proceedings against the company in a class action against Juul Labs, reports The Lawyer’s Daily. Altria owns 35 percent of Juul.
The claim alleges that Altria conspired with Juul in the sale of nicotine vaping devices, to youth in particular, with the goal “to convert them into smokers” in part through nicotine addiction.
The class action was initially filed in September 2019, shortly after Health Canada issued an advisory for vapers to “monitor themselves for symptoms of pulmonary illness … and to seek medical attention promptly if they have concerns about their health.”
“This is an important decision that ensures that Canadians are able to sue all the parties that they allege have harmed them,” said Daniel Bach, a partner in Siskinds, about the Supreme Court decision. “We look forward to litigating these issues against Altria on the merits.”
Juul has been pummeled by lawsuits and mounting restrictions on the production and sale of vaping products in recent years. The e-cigarette maker has suffered financially as a result.
Since 2019, Juul has halted all U.S. advertising, discontinued most of its flavors and attempted to rebrand itself as a product for older smokers who seek alternatives to cigarettes.
According to press reports, Juul has been preparing to file for Chapter 11 bankruptcy.
This was the second appeal by Altria in this class action that British Columbia courts have dismissed. In October 2021, the B.C. Court of Appeal dismissed an appeal to an order allowing cross-examination on its affidavits in the company’s jurisdictional challenge.
October 19, 2022
DOJ Files Injunctions Against 6 Vapor Manufacturers
The U.S. Department of Justice (DOJ) today filed complaints for permanent injunctions in federal district courts against six e-cigarette manufacturers on behalf of the U.S. Food and Drug Administration. The cases represent the first time the FDA has initiated injunction proceedings to enforce the Federal Food, Drug, and Cosmetic (FD&C) Act’s premarket review requirements for new tobacco products.
The FDA states that each of the defendants failed to submit premarket tobacco product applications (PMTAs) for their e-cigarettes and have continued to illegally manufacture, sell, and distribute their products, despite previous warning from the FDA that they were in violation of the law.
The injunctions would require the companies and named individuals to stop manufacturing, selling, and distributing their e-cigarettes. “Today’s enforcement actions represent a significant step for the FDA in preventing tobacco product manufacturers from violating the law,” said Brian King, director of the FDA’s Center for Tobacco Products. “We will not stand by as manufacturers repeatedly break the law, especially after being afforded multiple opportunities to comply.”
DOJ institutes judicial enforcement actions under the FD&C Act in court, according to a press release. Therefore, the injunctions were filed by DOJ on behalf of the FDA against the following defendants in their respective U.S. District Courts:

Morin Enterprises Inc. doing business as E-Cig Crib in the District of Minnesota

Soul Vapor LLC in the Southern District of West Virginia

Super Vape’z LLC in the Western District of Washington

Vapor Craft LLC in the Middle District of Georgia

Lucky’s Convenience & Tobacco LLC d/b/a Lucky’s Vape & Smoke Shop in the District of Kansas

Seditious Vapours LLC d/b/a Butt Out in the District of Arizona
The FDA states that the defendants continued to manufacture, sell, and distribute unauthorized e-cigarettes to consumers after receiving warning letters from the agency. The FDA’s prior warnings noted that further violations could lead to enforcement action, including injunction.
“These cases are an important step in stopping the illegal sale of unauthorized electronic nicotine delivery system products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with FDA to stop the distribution of illegal, unauthorized tobacco products.”
When companies are manufacturing and distributing unauthorized tobacco products, the FDA will typically first issue a warning letter in an attempt to achieve voluntary compliance with the law. If continuing violations are documented by the FDA, the agency may request that DOJ pursue a judicial enforcement action, such as an injunction or seizure.
The FDA also has administrative civil money penalty authority for violations of the FD&C Act relating to tobacco products.
October 18, 2022
Charlotte’s Web Signs First CBD Deal With MLB

Credit: Charlotte’s Web
The first company to score a CBD sponsorship with Major League Baseball is Charlotte’s Web Holdings Inc. as distribution deals with Gopuff and Southern Glazers widen its playing field.
Charlotte’s Web becomes the first CBD company that will be allowed to use the moniker “Official CBD of MLB.” The sports organization said in June said it would allow teams to enter sponsorships with CBD marketers.
Describing its relationship with MLB as a “multiyear, strategic partnership,” Charlotte’s Web will issue 6,119,121 shares of its common stock to the sports organization—worth an estimated $4.4 million, according to media reports.
In addition, the deal requires the company to make payments to MLB through Dec. 31, 2025.
According to a Securities and Exchange Commission filing, Charlotte’s Web will pay an “aggregate rights fee of $30.5 million and a 10 percent royalty on the company’s gross revenue from MLB-branded products of the company sold after prior sales of all such branded products exceed $18.0 million.”
Bottles of Charlotte’s Web’s new Sport Daily Edge line of CBD-infused gummies, oral sprays and topicals will carry MLB’s silhouetted batter logo.
“Charlotte’s Web will have a premiere brand presence at MLB’s Jewel Events, including All-Star Week, Postseason and the World Series” through marketing, media and ballpark activations that connect to the league’s fan base of over 180 million Americans,” the company said in a news release.
Also this month, Charlotte’s Web signed a distribution deal with liquor distributor Southern Glazer’s Wine & Spirits, which operates in 44 U.S. states, Washington D.C. and Canada.
That followed a national partnership with food and beverage delivery platform Gopuff, which also carries CBD-infused products from Medterra, Mad Tasty, Daytrip and Recess.
According to research from Brightfield Group, Charlotte’s Web was the leading U.S. CBD company in the second quarter in terms of dollar share, followed by Your CBD Store, Medterra, CBD American Shaman and cbdMD.
October 18, 2022
Hong Kong: Vape Dollars Make Sense for Ban Reversal
It was all about public health, now it seems to be about the money. Hong Kong may reverse its ban on the re-export of e-cigarettes and heated tobacco products, reports the South China Morning Post, citing unnamed sources.
Credit: Timothy S. Donahue
In April, the city prohibited the sale, manufacture and trade in alternative smoking products.
Authorities are now reportedly considering amending law, with eye on the billions of dollars that trade generates annually.
Hong Kong is close to Shenzhen, the world’s largest manufacturing hub for vapor devices.
October 18, 2022
Korean Health Ministry Sued Over Misinformation

Photo: niyazz
The Korea Electronic Cigarette Association (KECA) has sued the Ministry of Health and Welfare (MOHW) and the Korea Disease Control and Prevention Agency (KDCA), demanding the government correct misinformation about e-cigarettes, reports the Korea Biomedical Review.
The KECA’s lawsuit alleges that the government caused financial damage to e-cigarette-related small business owners by releasing incorrect information via an Oct. 23, 2019, press release recommending Koreans stop using liquid e-cigarettes.
The MOHW’s recommendation was issued following an outbreak of lung injuries in the United States that was initially attributed to nicotine vapes but was later determined to be associated with illicit THC products.
“According to the U.S. [Food and Drug Administration’s] notice banning the sale of liquid-type e-cigarettes, which was the basis of the MOHW’s decision that advised smokers to stop using e-cigarettes, tetrahydrocannabinol, a hemp-derived substance, was the main problem,” the KECA said.
In 2019, the U.S. Centers for Disease Control and Prevention stated that there were 530 confirmed severe lung diseases and eight deaths in the U.S. related to the use of liquid-type e-cigarettes.
“However, at the time of the announcement of the MOHW’s recommendation, there was only one suspected case of lung damage in Korea, and even the suspected case came from a person who smoked tobacco,” the KECA said.
According to a paper published in the Journal of Korean Medical Science in December 2021, there were no cases of severe pneumonia or lung damage among liquid e-cigarette users, according to the KECA. The group stated that the MOHW’s failure to withdraw its recommendation to stop use of liquid e-cigarettes shows a neglect of its duties.
A MOHW spokesperson said it will investigate the complaint and respond to the lawsuit in conjunction with other agencies, such as the KDCA and the Ministry of Food and Drug Safety.
October 17, 2022
AVM Asks for Ethics Investigation Into Dick Durbin

Dick Durbin and Center for Tobacco Products Director Brian King (Photo: The office of Senator Dick Durbin)
The American Vapor Manufacturers Association (AVM) has requested that the Senate Ethics Committee investigate Illinois Senator Dick Durbin for allegedly violating Senate rules by attempting to improperly influence U.S. Food and Drug Administration scientific decisions about vaping products, according to Vaping360.
On Oct. 14, the AVM delivered a letter to the chair and vice chair of the Senate Select Committee on Ethics that alleged Durbin pressured the FDA to ban all vaping products despite the agency’s premarket tobacco product application (PMTA) review process.
Citing Durbin’s track record (urging the FDA to ban vapor products via letters, Senate floor speeches, press releases and private meetings) the AVM says it believes Durbin attempted “to interfere with and influence the outcome of an ongoing executive branch agency review process in violation of Senate Ethics rules.”

“Senator Durbin’s arrogant bullying has now become a grave threat to public health.”
Amanda Wheeler, president, AVM
“Senator Durbin’s arrogant bullying has now become a grave threat to public health,” AVM President Amanda Wheeler said in a press release. “At a time when trust in public health authorities is already shaky, Durbin’s shameful campaign to hijack federal policy on this crucial health issue should come to an immediate end.”
The letter to the Senate committee marks the second time this year that the AVM has asked a government body to investigate corruption of the FDA PMTA review process.
According to Vaping360, the ethics committee is unlikely to seriously investigate Durbin or cite him for misconduct; Durbin is Senate Majority Whip, making him the second-highest ranking Democrat in the Democratic-led body.
October 17, 2022
Chinese, European Vape Groups Sign Marketing Code
Photo: IEVA
The E-Cigarette Professional Committee of the China Electronics Chamber of Commerce (ECCC) has signed the Independent European Vape Alliance’s (IEVA) recently updated Code for Responsible Marketing.
The Code for Responsible Marketing contains 14 mandatory principles, focusing on the idea that “e-cigarette marketing should not make vaping seem appealing to minors.”
“As confident as we are that e-cigarettes have significant harm reduction potential, we also recognize that they must be marketed responsibly,” said Dustin Dahlmann, president of IEVA, in a statement.
“The signatories therefore only address adult smokers and e-cigarette users with their advertising and marketing to inform them about the products. Youth protection is imperative for us. We are very glad that we agreed on this with our dear colleagues from China.”
October 17, 2022