Tag: e-cigarettes

  • Fifth Circuit Cites Triton to Vacate 5 Denial Orders

    Fifth Circuit Cites Triton to Vacate 5 Denial Orders

    Fifth Circuit Court of Appeals

    The 5th Circuit Court of Appeals granted petitions for review to five vaping companies, citing its own decision in the Triton Distribution case as precedent.

    The court sent the company’s marketing denial orders (MDOs) back to the U.S. Food and Drug Administration for additional scientific evaluation. As a result, the manufacturers may keep selling their products until the agency completes new reviews of their premarket tobacco applications (PMTAs), or until the Supreme Court takes action.

    “Specifically, the court determined that (1) FDA did not give e-cigarette manufacturers fair notice of the rule requiring long-term studies for PMTAs; (2) FDA did not acknowledge or adequately explain its change in position; and (3) FDA ignored reasonable and serious reliance interests that manufacturers had in the pre-MDO guidance,” the 5th Circuit wrote in its ruling.

    Five companies, Cloud House, Paradigm Distribution, SWT Global Supply, Vaporized and SV Packaging first challenged their MDOs in court in October 2021. The court consolidated the five cases, and in November 2021, all petitioners were granted stays pending review.

    In January, the 5th Circuit found in favor of Wages and White Lion Investments (doing business as Triton Distribution) in the e-liquid manufacturer’s appeal of an MDO. The FDA later petitioned the Supreme Court to review the 5th Circuit’s ruling, and last month the Supreme Court agreed to hear the agency’s appeal.

    The FDA challenged the Triton decision, and the U.S. Supreme Court agreed to hear that case. “But now another panel of the Fifth Circuit has applied the same rationale as in Triton to hold that these five, small-business manufacturers prevail for the same reason: FDA pulled a surprise switcheroo,” wrote the United States Vaping Association on X.

    The 5th Circuit found that the recent petitions posed the same issues as Triton’s. “Petitioners spent substantial time and resources preparing their PMTAs based on FDA guidance that they would not need to submit long-term clinical studies,” the court wrote.

    “Nevertheless, FDA rejected their PMTAs using the same boilerplate language it used for the Wages petitioners’ denials, as well as those of thousands of other e-cigarette manufacturers. Accordingly, for the reasons amply explained by the en banc court in Wages, we hold that FDA acted unlawfully here as well by denying Petitioners’ PMTAs based on the absence of long-term clinical studies.”

  • Quarterly Revenue and Profit up at Japan Tobacco

    Quarterly Revenue and Profit up at Japan Tobacco

    The JT Group reported revenue of ¥1.6 trillion ($10.63 billion) for the second quarter of 2024, up 12.7 percent over the comparable 2023 period. Profit increased by 6.3 percent to ¥305.2 billion.

    “The JT Group posted another strong set of results for the first half, driven by continued market share gains and solid pricing in the tobacco business,” said President and CEO Masamichi Terabatake in a statement.

    “Total volume increased by 2 percent year-on-year, with combustibles growing 1.7 percent and RRP [reduced risk products] up by a strong 25.5 percent. RRP volume was mainly driven by Ploom in the HTS segment, our investment priority, resulting in RRP-related revenue increasing by approximately 29 percent year-on-year.

    “In the Japanese market, Ploom volume increased approximately 36 percent year-on-year, growing at a faster pace than total HTS demand in the market. Additionally, the geo-expansion of Ploom has now reached 21 markets, with sales volumes in markets outside Japan also steadily increasing.

    “For the full-year performance forecast, we have revised our adjusted operating profit at constant FX [foreign exchange rates] upward, reflecting the positive momentum in the first half. On a reported basis, we have also revised our forecast upward, considering the continued impact of the current positive foreign exchange trend.”

  • Turning Point Announces Second Quarter Results

    Turning Point Announces Second Quarter Results

    Photo: David

    Turning Point Brands (TPB) announced financial results for the second quarter ended June 30, 2024.

    Total consolidated net sales increased 2.8 percent to $108.5 million compared to the previous year period. Zig-Zag product net sales increased 8 percent. Stoker’s product net sales increased 18.5 percent. Creative Distribution Solutions (CDS) net sales decreased 33 percent. Gross profit increased 2.6 percent to $53.8 million. Net income increased 31 percent to $13 million. Adjusted net income increased 12.2 percent to $17.2 million. Adjusted EBITDA increased 6.9 percent to $27 million.

    “We were pleased by our second-quarter results,” said President and CEO Graham Purdy in a statement. “We achieved our highest quarterly EBITDA since the second quarter of 2021. We believe Zig-Zag is on a sustainable growth trajectory, and Stoker’s MST continues to grow market share. In addition, sales of FRE, our modern oral nicotine pouch, grew 76 percent sequentially as we continue to expand our national footprint.”

    The company is increasing its previous full-year 2024 adjusted EBITDA guidance from $95 to $100 million to $98 to $102 million, which excludes CDS.

    For the second quarter, CDS net sales were $15.3 million, gross profit was $3.4 million and gross margin was 22.5 percent.

  • Warning Letters for 5 Online Illegal Vape Retailers

    Warning Letters for 5 Online Illegal Vape Retailers

    Credit: Marcus Krauss

    The U.S. Food and Drug Administration has again  issued warning letters to five online retailers for selling unauthorized disposable e-cigarette products marketed under the brand names Geek Bar, Lost Mary, and Bang. It’s the second wave of warning letters issued in July.

    The retailers included Smoke and Vape Company, LLC d/b/a Smoke and Vape Co.; Smoking Vibes LLC d/b/a Smoking Vibes; Cavalry Industries d/b/a Select Vape; HTXW LLC d/b/a FOMO Culture; and Global Supply Allies Inc. d/b/a Vapor Grab.

    These warning letters were a result of FDA’s ongoing monitoring of multiple surveillance systems, including a review of various data, to identify emerging products of particular concern that are popular among youth or have youth appeal, according to an agency press release. For example, emerging data showed that Geek Bar – a Chinese-owned and manufactured brand – has recently seen an uptick in sales and can appeal to youth.  

    Warning letter recipients are given 15 working days to respond with the steps they will take to address the violation(s) cited in the warning letter and to prevent future violations. Failure to promptly address the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties. 

    FDA holds retailers accountable for selling unauthorized tobacco products, particularly those popular with youth. To date, FDA has issued over 680 warning letters to firms for manufacturing, selling, and/or distributing unauthorized new tobacco products, issued more than 690 warning letters to retailers for the sale of unauthorized tobacco products, and filed civil money penalty complaints against 64 manufacturers and more than 140 retailers for distribution and/or sale of unauthorized tobacco products. 

    As of August 1, 2024, the FDA has authorized 34 e-cigarette products and devices. The agency maintains a printable one-page flyer of all authorized e-cigarette products that retailers can easily consult to determine which products can be lawfully marketed and sold in the U.S. Entities manufacturing, importing, selling, or distributing e-cigarettes without the required premarket authorization risk enforcement.

  • PMI Urges More Collaboration Against Illicit Trade

    PMI Urges More Collaboration Against Illicit Trade

    Photo: PMI

    International collaboration, stringent regulation and enforcement are the cornerstones in the fight against illicit trade, according to Rodney van Dooren, head of illicit trade prevention at Philip Morris International.

    Speaking at a trademark and brand protection conference, held in Delhi, July 23-24, van Dooren pointed out how prohibition has not been a viable option, while regulation and enforcement would be the solution to curb illicit trade.

    “Approximately 12 percent of the global cigarettes consumed are illicit, which impacts governments across the globe to the tune of $40.5 billion in tax losses, van Dooren said.

    “According to the Euromonitor report, one in four cigarettes consumed in India is illicit which translates to close to $2 billion in tax losses. There are various smuggling routes around the world for both counterfeit and contraband products, making this challenge not a domestic but a transnational issue that requires transnational solution.”

    Van Dooren urged authorities to better leverage the existing free trade agreements and provisions within the World Trade Organization to raise awareness with transit and source countries.

    “The next recommendation is to promote harmonization of existing gold standard regulations around ASEAN, supported by implementing rules, including the law enforcement agency that has jurisdiction and the related penalties,” he noted.

    “The adoption of the regulation requires manufacturers and exporters to ensure that the goods being exported comply with the destination market regulation. Additionally, in transshipment, adopt regulation that allows for inspection of suspicious shipments and exercise jurisdiction by Customs or any appropriate law enforcement agency on IP-infringing violations. Lastly, strengthen domestic enforcement effectiveness by enhanced cooperation with the legal industry and inter-law enforcement agency cooperation.”

  • Age to Purchase Nicotine Raised to 21 in Indonesia

    Age to Purchase Nicotine Raised to 21 in Indonesia

    Vapor Voice Archives

    Indonesia raised the minimum age limit for purchasing cigarettes and vaping products to 21 from 18 as part of a series of changes to health regulations intended to curb nicotine use in a country with one of the world’s highest smoking rates.

    A country of 270 million people, Indonesia is one of the world’s top producers of tobacco, and there are about 70 million adult smokers there, according to a 2021 World Health Organization survey, a media outlet states.

    In a government regulation signed by President Joko Widodo last week, Indonesia raised the minimum age for people wanting to buy cigarettes to 21. It also banned the sale of a single cigarette.

    The regulation is intended to “lower the prevalence of smokers and prevent early-age smokers.” Among the provisions is banning the sale of cigarettes within 200 meters (656 feet) of schools and playgrounds.

    The regulation took effect immediately.

    The new regulation also bans conventional and e-cigarette sales on “commercial electronic applications” and social media sites. It also bans advertising cigarettes on social media. Penalties for violations range from a written reprimand to a temporary ban on advertising cigarettes.

    The new provisions on advertising will come into force in two years.

  • California County Shutters Shop for Illegal Sales

    California County Shutters Shop for Illegal Sales

    Credit: Wesnice

    A county district attorney in California wants to keep vapes, tobacco products and other prohibited items off of store shelves out of the hands of children.

    Monterey County is handing down civil penalties to Rubystar Gems and Gifts, a local business accused of doing just that. The Monterey County District Attorney’s Office says they received word in late 2023 from the Monterey Police Department and Monterey Sheriff’s Department about complaints against the store for selling tobacco products to minors.

    The store was also allegedly selling flavored tobacco products, which are illegal in California, hallucinogenic mushroom gummies containing a substance that is illegal to sell in California and illegal weapons like “metal knuckles.”

    The mushroom gummies contain psilocybin, which is a hallucinogenic controlled substance that is illegal to sell in California. The packaging was counterfeit and did not indicate the actual product and its true manufacturer on the label, according to media reports.

    The store’s owner agreed to a civil settlement and has to pay a $25,000 penalty for the violations. In 2022 and 2023, two sales clerks were prosecuted in a criminal court for selling tobacco products to minors. Continued complaints prompted the Monterey District Attorney’s Office to investigate further.

    The store is currently closed, but Emily Hickok, a chief deputy district attorney at the Monterey County District Attorney’s Office, says it can legally continue to operate. The store owner didn’t want to go on camera but did say the store is closed because of personal health reasons and that he is retiring.

  • Top Court Upholds Philippines FDA Vapes Authority

    Top Court Upholds Philippines FDA Vapes Authority

    Photo: natatravel

    The Supreme Court of the Philippines upheld its 2021 decision to grant the country’s Food and Drug Administration regulatory authority over the health aspects of tobacco products, reports the Inquirer.

    “All products affecting health, including tobacco products, are covered by the FDA’s mandate to ensure the safety, efficacy, purity, and quality of health products,” the Supreme Court said.

    “Thus, the inclusion of tobacco products in the implementing rules of the FDA Act is in accordance with the law,” it added.

    The case stemmed from an attempt to stop the enforcement of the FDA implementing rules and regulations. In a case filed in 2011 before the Regional Trial Court of Las Pinas City, the Philippine Tobacco Institute (PTI) alleged that those rules improperly expanded Republic Act No. 9711 by classifying tobacco products as health products.

    The PTI argued that under the Tobacco Regulation Act of 2003, the Inter-Agency Committee on Tobacco (IACT) had exclusive jurisdiction over tobacco products.

    In 2012, the Las Pinas court ruled in favor of PTI and nullified the provisions of the FDA implementing rules and regulations relating to tobacco.

    The Department of Health and the FDA then petitioned the Supreme Court for review, which overturned the Las Pinas court decision in 2021. The PTI then challenged the high tribunal’s ruling, but was rebuffed.

    The denial of the motions for consideration means the IACT and the FDA will continue to share authority over tobacco, with each overseeing different aspects of the trade.

    Under the Tobacco Regulation Act, the IACT is chaired by the trade secretary with the health secretary as vice chair and includes a representative of the tobacco industry as a member. The PTI previously held the position of representing the tobacco industry in the committee.

  • Nebraska Lawmaker Introduces Vaping Tax Bill

    Nebraska Lawmaker Introduces Vaping Tax Bill

    Credit: Mandritoiu

    Lawmakers in Nebraska have introduced legislation to increase the tax on vaping products.

    The tax on electronic nicotine delivery system (ENDS) products will be 40 percent of the purchase price of the device if the bill becomes law.

    The tax is to be paid by the first owner or at a price at which the first owner who made, manufactured, or fabricated the ENDS product sells the item to others, the proposed bill states.

    For ENDS products in the possession of retail dealers for which tax has not been paid, the bill states that the tax shall be imposed at the earliest time the retail dealer “brings or causes to be brought into the state” any ENDS device for sale.

    The bill is currently with the Revenue Committee in Nebraska’s House of Representatives.

  • Vaporesso to Celebrate 9th Anniversary in Vaping

    Vaporesso to Celebrate 9th Anniversary in Vaping

    A legendary brand in the vaping industry announced its 9th anniversary, which will be celebrated with special events. Vaporesso invites its community to participate in “exciting activities that embody the spirit of competition and achievement.” 

    According to a press release, on Aug. 18, Vaporesso will hold a music party featuring extreme sports in Nice, France. Bringing together top athletes from the sea (surfing), land (BMX), and air (paragliding).

    “Inspiring to ‘Push the Envelope,’ vapers are encouraged to share their personal ‘Championship Moments’ in the comments section of the Vaporesso website for our community to celebrate together,” a press release states. “Share the moments when our vapers took up the challenge to try to break through their upper limits. Let’s celebrate victories, big or small, and inspire one another to reach new heights. Anyone has the right to become their own champion through determination and resilience.”

    For a chance to win prizes, including a grand prize of a round-trip flight ticket to Paris, visitors can participate in a trivia game to learn facts about the three showcased extreme sports: BMX, paragliding, and surfing.

    “Our 9th anniversary is a testament to the passion and dedication of our team and the unwavering support of our fans. We hope that through the anniversary celebration, everyone can learn about meaning behind Vaporesso’s ‘Move Beyond Ordinary.’ Our spirit of continuous breakthroughs and challenging limits will continue to be reflected in Vaporesso’s business,” said Jimmy Hu, VP at Vaporesso. “We also hope to give back to our community with prizes that represent our spirit. A thank you for 9 years of companionship in the vaping journey.”