Tag: e-cigarettes

  • EU Lawmakers Propose Flavor Ban for Heated Tobacco

    EU Lawmakers Propose Flavor Ban for Heated Tobacco

    Credit: DMF87

    The European Commission on June 29 proposed a ban on the sale of flavored heated tobacco products.

    Contrary to other media reports, the proposal does not include e-cigarettes or vaping products that use an e-liquid that contains a liquid nicotine. The ban only applies to heated tobacco products, such as Glo or IQOS.

    The move is part of Europe’s “beating cancer plan,” which envisions less than 5 percent of the EU population using tobacco by 2040.

    “With nine out of 10 lung cancers caused by tobacco, we want to make smoking as unattractive as possible to protect the health of our citizens and save lives,” said EU health commissioner Stella Kyriakides.

    According to EU figures, cancer is the second-leading cause of death in the bloc of 450 million residents. There are about 1.3 million cancer deaths and 3.5 million new cases per year in the EU.

    Kyriakides said that regulators need to “keep pace” with new developments to “address the endless flow of new products entering the market.”

    A recent report showed a 10 percent increase in sales volumes of flavored heated tobacco products in more than five EU countries between 2018 and 2020. Overall in the EU, these products exceeded 2.5 percent of total tobacco product sales in 2020.

    The Council and the Parliament will debate the Commission’s proposal before it enters into force 20 days after the publication in the Official Journal. EU countries will have eight months to transpose the directive into national law, and a further three months before the provisions will apply.

  • Reynolds’ Vuse Continues Market Gains Over Juul

    Reynolds’ Vuse Continues Market Gains Over Juul

    The R.J. Reynolds Vapor Co. and its Vuse brand e-cigarette continues to gradually grow its U.S. market-share lead over Juul.

    Vuse’s market share rose from 35.1 percent to 35.5 percent, compared with Juul declining from 33.1 percent to 32.9 percent, according to the latest Nielsen analysis of convenience-store data that covers the four-week period ending June 18.

    It is the first Nielsen report since the U.S. Food and Drug Administration announced Thursday that Juul Labs would be required to remove all of its e-cigarette products from U.S. shelves. The U.S. Court of Appeals for the D.C. Circuit on Friday granted Juul Labs an emergency administrative stay of enforcement.

    For the latest report, NJoy dropped from 3 percent to 2.9 percent, while Fontem Ventures’ blu eCigs slipped from 1.9 percent to 1.7 percent.

    The decision to remove the No. 2-selling electronic cigarette in the country will likely to lead to a dominant market share for Vuse products. However, for the past 52 weeks, Juul remains ahead 35.1 percent to 31.2 percent, according to the Winston-Salem Journal.

    “Having received the emergency temporary stay, we are now seeking the ability to continuously offer our products to adult smokers throughout our appeal with the court and science- and evidence-based engagement with our regulator,” Joe Murillo, Juul Labs’ chief regulatory officer, said Tuesday. “We remain confident in our science and evidence and believe that we will be able to demonstrate that our products do in fact meet the statutory standard of being ‘appropriate for the protection of the public health.’ “

    Nielsen largely covers larger chain stores and doesn’t track local vape shop sales. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen, such as the rise of disposable products.

    Nielsen determined that Vuse recaptured the top market share in the April 23 report. That was the first time Vuse held the top market share in the Nielsen report since November 2017.

    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 a 12.2 percent decline in the latest report.

    By comparison, Reynolds’ Vuse was up 40.5 percent in the latest report, while NJoy was down 14.1 percent and blu eCigs down 27.9 percent. Goldman Sachs analyst Bonnie Herzog has said that NJoy “refutes Nielsen’s data and methodology.”

    Another factor is that e-cigarette sales overall have slumped since February 2020, when the FDA implemented its latest round of heightened regulations on the products.

  • Juul: FDA ‘Overlooked’ 6,000 Pages of Aerosol Data

    Juul: FDA ‘Overlooked’ 6,000 Pages of Aerosol Data

    The U.S. Food and Drug Administration overlooked a key part of Juul’s premarket tobacco product application (PMTA) when the agency ordered Juul Labs’ products off the U.S. market, according to court documents.

    In court filings Tuesday, Juul said the agency overlooked more than 6,000 pages of data that the company had submitted to the FDA on the aerosols that users inhale, according to the Wall Street Journal.

    Juul also said the agency failed to consider the totality of Juul’s evidence, which the company said established that the public-health benefits of Juul products significantly outweighed the potential risks.

    “FDA’s order acknowledged that ‘exposure to carcinogens and other toxicants present in cigarette smoke were greatly reduced with exclusive use’ of Juul products compared with combustible cigarettes,” Juul Labs stated in court documents.

    The company added that the decision was reached “against a backdrop of immense political pressure” from Congressional lawmakers who “tainted the entire agency process” by pushing for a Juul ban. Juul officials say its products are held to a different regulatory standard than those made by rivals.

    “If the court does not intervene, [Juul Labs] products will disappear from store shelves and politics will have won over sound science and evidence,” the filing said.

    A federal appeals court last week granted Juul Labs a temporary stay of the FDA’s marketing denial order that requires the vaping company to pull its e-cigarettes off the U.S. market.

    “The purpose of this administrative stay is to give the court sufficient opportunity to consider petitioner’s forthcoming emergency motion for stay pending court review and should not be construed in any way as a ruling on the merits of that motion,” the court wrote.

    The FDA has until July 7 to respond to Juul’s motion and Juul Labs has until July 12 to reply to the FDA response if submitted.

    “Having received the emergency temporary stay, we are now seeking the ability to continuously offer our products to adult smokers throughout our appeal with the court and science- and evidence-based engagement with our regulator,” said Joe Murillo, Juul Labs’ chief regulatory officer.

    Last week, the Wall Street Journal reported that the company is mulling a potential bankruptcy filing if the FDA ban is upheld.

  • Innokin’s Klypse Device Wins Several Vaping Awards

    Innokin’s Klypse Device Wins Several Vaping Awards

    Innokin Klypse

    Innokin is finding success with its new Klypse pod vaping device. The refillable pod system has won three awards across three major international events.

    China-based Innokin’s Klypse device started with winning “Best Pod” at Vapexpo Spain. The Innokin Klypse stood out for its “exceptional vaping performance and build quality,” according to a release. At the World Vape Show Dubai, the Klypse won “Best Pod” with “performance, reliability and [an] affordable price point” being highlighted as reasons for the honor. Most recently, the Innokin Klypse was awarded “Best Pod Vape” by Vaping Post.

    It is rare for one device to several awards in the vape show circuit. Thousands of new products are released each year, and only a select few are recognized by industry experts with coveted international awards. The pod system category continues to be the most competitive in vaping hardware, as manufacturers are keen to provide new vapers with the best entry-level devices possible.

    “It is a privilege to be recognised by fellow industry veterans, especially as we focus on transitioning smokers with simple, affordable devices,” said George Xia, co-founder of Innokin. “We have been greatly encouraged by the consumer reaction to our new releases and look forward to gathering more feedback in the remainder of the exhibition season.”

    Look for a third-review of Innokin’s Klypse in Issue 4 2022 of Vapor Voice (August, 2022).

  • Bangladesh Mulls Ban on E-Cigarettes and Pouches

    Bangladesh Mulls Ban on E-Cigarettes and Pouches

    Photo: sezerozger

    Bangladesh’ Ministry of Health and Family Welfare wants to amend the country’s tobacco act to ban e-cigarettes and oral nicotine pouches, reports The Business Standard. The proposal also includes new restrictions on combustible tobacco products.

    Health activists have been calling for prohibition of e-cigarettes, which are not mentioned in the current legislation. The proposal would prohibit not only the consumption of vapor products, but also the production, import, export, storage, sale and transportation of e-cigarettes or their parts.

    People caught vaping would face maximum fine of BDT5,000 ($53.80) under the plan, while producers and traders would risk imprisonment for a maximum of six months or a fine not exceeding BDT200,000 or both for the first time. The punishment would double each time the offence is repeated.

    E-cigarettes started arriving informally in Bangladesh a few years ago and quickly became popular. As demand increased, British American Tobacco started producing and selling e-cigarettes in the market. Japan Tobacco is also reportedly preparing to market e-cigarettes in Bangladesh.

    The health ministry’s proposal would also tighten restrictions on traditional tobacco products. Among other provisions, it includes a ban on flavors and an increase in the size of graphic health warnings to 90 percent of the packaging’s surface from the 50 percent required under current legislation. The draft also foresees new retail licensing requirements and limitation on where tobacco can be sold.

    The health ministry has recently sent copies of the draft to stakeholders. The Directorate General of Health Services is accepting opinions on the draft until July 14.

  • Poda Completes Asset Sale to Altria Client Services

    Poda Completes Asset Sale to Altria Client Services

    Photo: Poda Holdings

    Poda Holdings has completed the sale of substantially all of the assets and properties used in the company’s business to Altria Client Services for a total purchase price of $100.5 million, subject to certain adjustments and holdbacks, pursuant to a definitive agreement dated May 13, 2022.

    Pursuant to the Asset Purchase Agreement, Poda will change its name to Idle Lifestyle and its trading symbol to IDLE.X. The company expects to trade as an inactive issuer under the policies of the Canadian Stock Exchange.

    “The completion of this sale represents the culmination of a tremendous amount of effort from the entire Poda team, and I am extremely proud of what we have accomplished,” said Poda Director, CEO and Chairman Ryan Selby in a statement.

    I believe this transaction provides maximum value for the company and its shareholders, and I know our innovative technology is now in good hands with Altria.”

  • Motley Fool: Juul Removal Would Crown BAT King

    Motley Fool: Juul Removal Would Crown BAT King

    Photo: BAT

    The removal of Juul products would hand the U.S. market to BAT (formerly British American Tobacco), according to Motley Fool.

    Juul, which is partly owned by Altria Group, had been the undisputed e-cigarette leader, with a near-80 percent share of the market at the height of its success. The latest Nielsen data puts Vuse’s share at 35.1 percent compared to 33.1 percent for Juul. Third-place NJOY has a 3.1 percent share.

    Last year, the U.S. International Trade Commission ruled that Philip Morris International’s IQOS heated tobacco device infringed on BAT’s patents, and that device was prohibited from being imported and sold in the U.S. Altria had partnered with PMI to market and distribute IQOS in the U.S., but the ITC ruling disrupted those plans.

    Because Altria shelved its MarkTen e-cigarette brand in  favor of partnering with PMI, the ITC ruling leaves it without a vapor product. The FDA has all but wiped out the rest of its investment in Juul. In 2018, Altria paid $12.8 billion for a 35 percent in the vapor company. As of the end of the first quarter of 2022, Altria had reduced the fair value of its Juul position to just $1.6 billion.

    If the FDA is successful in eliminating Juul, BAT will essentially have no roadblocks in its way to market dominance.

    Vuse turned profitable in the U.S. for BAT in the second half of last year, and it’s been able to grow its share because it discounted the device and the consumables to attract users. Earlier this month, BAT said it was now ready to raise prices on both. With a major competitor removed from the market, this should provide the company with a big boost in profits.

    BAT’s vapor revenue grew 59 percent last year to £927 million ($1.14 billion), while its own heated tobacco products, marketed under the Glo brand, saw a 46 percent rise in sales to £853 million.

  • Licensing Agreement Brings Leadership Changes at Kaival

    Licensing Agreement Brings Leadership Changes at Kaival

    Photo: adragan

    Kaival Brands Innovations Group Founder and CEO Nirajkumar Patel will transition to chief science and regulatory officer. Eric Mosser, the company’s current chief operating officer, will become president and remain COO. Mosser will serve as the company’s principal executive officer for purposes of its filings with the Securities and Exchange Commission. Patel will remain on the board of directors for Kaival Brands.

    The management changes follow the company’s recently announced international licensing agreement with Philip Morris Products (PMP) on June 13, 2022.

    The agreement grants to PMP a license of certain intellectual property rights relating to Bidi Vapor’s premium electronic nicotine delivery system (END”) device, the Bidi Stick, in the U.S., as well as potentially newly developed devices, to permit PMP to manufacture, promote, sell and distribute such ENDS device and newly developed devices, in markets outside of the U.S.

    “What Mr. Patel has accomplished, from initial concept to an international distribution agreement with Philip Morris is extraordinary,” said Mosser in a statement. “With unwavering belief and integrity, he established himself as a true visionary within the vaping category.

    Mr. Patel has been both inventor and salesman, developing a product and everything that goes around it to make it successful. We have grown from a no-name brand to the No. 1-selling self-contained disposable ENDS device in the U.S based on the Nielsen retail sales data for the 52-week period ending June 4, 2022, according to a recent Goldman Sachs’ Equity Research Report.”

    The transition will allow Patel to focus on developing new products and expanding the Bidi Vapor product portfolio, which is directly related to the new agreement with PMP, and allow Mosser to focus on expanding sales distribution channels and increasing the revenues and profits of Kaival Brand.

    “My passion for the business is in creating, designing and delivering new products for adult tobacco users to the market,” said Patel. “Mr. Mosser understands the core values, mission and goals of the Company, and I am confident he will take Kaival Brands to new levels.”

    The management changes are effective immediately, with roles and responsibilities to transfer over the coming weeks.

  • San Jose, California Flavor Ban Begins on July 1

    San Jose, California Flavor Ban Begins on July 1

    Credit: Andriano_cz

    The San José City Council’s unanimous action last fall to ban flavored vaping and other tobacco product sales will soon take effect. Starting July 1, 2022, the sale of flavored tobacco within the City of San José, California is prohibited, as outlined in the city’s Tobacco Retail Ordinance.

    “The ban applies to any tobacco products with an artificial flavor, natural flavor, aroma, herb or spice, including — but not limited to — cherry, chocolate, cinnamon, clove, cocoa, coconut, coffee, grape, licorice, menthol, mint, orange, pineapple, strawberry, vanilla, and other flavors,” according to press release. “This includes products where such flavors characterize the smoke or vapor produced by the tobacco product.”

    Certain products are exempted from the ban, including shisha, hookah, and premium cigars.

    The City’s Code Enforcement Division, which oversees tobacco retailers in San José, will enforce the ban. Sellers of the banned products, after June 30, 2022, could be fined up to $2,500 per day and/or have their tobacco license revoked.

    “The tobacco industry has targeted youth with these colorful, flavored tobacco products, leading to an alarming rise in tobacco use among youth. We are proud to put the health of our youth first with these prohibitions,” said Mayor Sam Liccardo.

    “Studies show that more than 80 percent of minors and young adults report that flavored tobacco was their first use of a tobacco product,” said Chris Burton, director of the Planning, Building and Code Enforcement Department. “This ordinance update to ban the sale of flavored tobacco and other steps can greatly help minimize access to tobacco by youth.”

    The City Council’s action and ordinance update in Fall 2021 included the steps of prohibiting the location of new tobacco retailers locating within 1,000 feet of facilities that serve youth and within 500 feet of an existing tobacco retailer. That requirement went into effect on November 18, 2021.

    The Code Enforcement Division facilitated the Tobacco Retail Ordinance update with a grant from the County of Santa Clara, which is coordinating with cities throughout the county on flavored tobacco prohibitions.

    San José and other cities proceeded with local bans after California Senate Bill 793, which banned the sale of flavored tobacco statewide in 2020, was placed on hold for a voter referendum in November 2022 that could potentially repeal the measure.

    The American Nonsmokers’ Rights Foundation reports that as of April 1, 2022, 235 municipalities (predominantly in California) have banned or restricted the sale of flavored tobacco.

    trilingual brochure produced by the Code Enforcement Division explains the ban and other rules for tobacco retailers in English, Spanish and Vietnamese.

  • USPS Gives Greenlane Holdings PACT Act Exemption

    USPS Gives Greenlane Holdings PACT Act Exemption

    Credit: Lost in Midwest

    Greenlane Holdings, one of the largest sellers of premium cannabis accessories, announced that it has begun shipping previously restricted vaping products to its wholesale clients under a business and regulatory exemption to the Prevent All Cigarette Trafficking (PACT) Act. The exemption was issued the United States Postal Service (USPS).

    The U.S. Congress banned all electronic nicotine delivery system (ENDS) products from being mailed by the USPS in 2020. The rule change was lumped into the Covid-19/ omnibus budget bill passed. 

    After receiving the regulatory exemption in January 2022, Greenlane has successfully implemented the controls, processes, and systems required to begin utilizing the USPS and offering it to customers at full capacity, according to a press release. The ability to fulfill ENDS products with the USPS will allow the Company to reduce shipping costs, decrease fulfillment times, and enhance the overall customer experience for approved wholesale customers.

    “We are excited to, once again, offer a high quality and cost-effective fulfillment solution to our wholesale clients for our entire suite of products,” said Nick Kovacevich, CEO of Greenlane. “We continue to focus on strengthening our position as industry leaders in compliance and safety. This major step further differentiates us in the market and demonstrates our Company’s strength in adapting to the ever-changing regulatory landscape.”

    The implementation of this new fulfillment offering through the USPS will also enable Greenlane to partner with businesses that ship regulated ENDS products and need a cost-effective logistics solution.

    “We believe this new shipping capability positions us well to accelerate our growth in the vaporizer space, and to take advantage of new revenue opportunities through offering our compliant logistics capabilities to other businesses that have been impacted by the PACT Act,” said Kovacevich.