It’s over. A New Jersey federal judge has thrown out a vape company’s trademark suit alleging Duracell US Operations Inc. infringed on its “Optimum” brand name trademark.
What A Smoke owns federal “Optimum” trademarks covering e-cigarette batteries and other products such as atomizers, tanks, and refill cartridges.
The judge stated there was “no evidence” of any “potential or actual confusion” between the two products, according to Law360.
What A Smoke filed suit asking for Duracell’s applications to register two federal “Optimum” trademarks to be rejected based on likely confusion with What A Smoke’s trademarks.
Smokers who switch to e-cigarettes are now more likely to stop smoking regular cigarettes, according to a new paper published by Oxford University Press in Nicotine & Tobacco Research. In the past, smokers who began vaping mostly continued smoking.
Electronic nicotine delivery systems first emerged on the U.S. market in 2007. The first e-cigarettes resembled conventional cigarettes (in appearance) and used fixed low-voltage batteries. Beginning in 2016, manufacturers introduced e-liquids containing nicotine salt formulations. These new e-cigarettes became widely available. These nicotine salts are lower in pH than freebase formulations, which allow manufacturers to increase nicotine concentration while avoiding harshness and bitterness.
Past population-level research provided conflicting findings on whether vaping helps people who smoke combustible cigarettes to quit smoking. Some research suggests improved cigarette quitting-related outcomes with e-cigarette use, while other research suggests the opposite. Inconsistent findings may be due to differences in the samples and measures considered, differences in the analytic approaches of researchers used, the rapidly changing product environment, or policy contexts.
While our study doesn’t give the answers as to why vaping is associated with cigarette quitting in the population today when it wasn’t associated with quitting years ago, design changes leading to e-cigarettes that deliver nicotine more effectively should be investigated.
The researchers here examined differences in real-world trends in population-level cigarette discontinuation rates from 2013 to 2021, comparing U.S. adults who smoked combustible cigarettes and used e-cigarettes with U.S. adults who smoked combustible cigarettes and did not use e-cigarettes.
Using data from among adults (ages 21+) in the Population Assessment of Tobacco and Health (PATH) Study, a national longitudinal study of tobacco use from people from all over the United States, the researchers found that between 2013 and 2016, rates of discontinuing cigarette smoking among adults in the U.S. population were statistically indistinguishable between those who used e-cigarettes and those who did not. Cigarette discontinuation rates were 15.5 percent for those who used e-cigarettes and 15.6 percent for those who did not.
But the quit rates changed in subsequent years; the researchers here found that between 2018 and 2021 only 20 percent of smokers who did not use e-cigarettes stopped smoking combustible cigarettes, but some 30.9 percent of smokers who used e-cigarettes stopped smoking combustible cigarettes.
The paper notes that the full study period spanned a time in the United States when the e-cigarette marketplace was expanding; salt-based nicotine formulations gained market share in 2016 and vaping products became available with increased nicotine yields over time. This was also a period in which state and federal governments restricted tobacco in various ways, including increasing the tobacco-purchase age to 21 and restricting flavored e-cigarettes.
“Our findings here suggest that the times have changed when it comes to vaping and smoking cessation for adults in the U.S.,” said study first author, Karin Kasza, an assistant professor of oncology in the Department of Health Behavior at Roswell Park Comprehensive Cancer Center in Buffalo, New York, in a statement.
“While our study doesn’t give the answers as to why vaping is associated with cigarette quitting in the population today when it wasn’t associated with quitting years ago, design changes leading to e-cigarettes that deliver nicotine more effectively should be investigated. This work underscores the importance of using the most recent data to inform public health decisions.”
Kaival Brands Innovations Group reported revenues of $3.2 million for the first quarter of fiscal year 2024 compared with $2.5 million in the same period of the prior fiscal year. Gross profit was approximately $1.2 million in the quarter, up from $500,000 gross profit for the first quarter of fiscal year 2023. The increases in revenues and gross profit was due primarily to a decrease in credits being issued to customers, according to the company.
Nirajkumar Patel, who was recently appointed CEO at Kaival, assured investors that despite recent challenges, the company remains focused on preserving and improving shareholder value.
“We have experienced a number of stalled starts related to the FDA’s [U.S. Food and Drug Administration] denial of Bidi Vapor’s premarket tobacco product application for Bidi Vapor’s ‘Classic’ tobacco-flavored Bidi Stick ENDS [electronic nicotine-delivery system] device, and we are navigating a number of transitions,” Patel said in a statement.
Patel also noted the company is appealing the FDA decision on Bidi Stick.
“However, we continue to believe there is tremendous value related to our international business as well as new, potential opportunities to monetize the extensive and valuable inhalation patent portfolio that we acquired from GoFire in May of last year.”
According to Patel, the purchase of the portfolio marks the beginning of Kaival’s diversification efforts and move away from reliance on revenues from Bidi Sticks. “Our efforts to explore profitability of this portfolio are underway, and we are incredibly energized by the interest and revenue opportunities we believe could be available to us through this portfolio,” said Patel.
Flavored vaping products lacking authorization from the U.S. Food and Drug Administration could be pulled from Virginia shelves, as a pair of identical bills head to Governor Glenn Youngkin’s desk for his signature. The governor has previously said he would sign the bills.
Del. Rodney Willett, and Sen. Creigh Deeds, say their bills would help eliminate the 50 percent of illegal, unregulated vapor and e-cigarette products currently being sold in the commonwealth. Both lawmakers said the bill’s intent are to also curb underage vaping, as no flavored e-cigarettes or vapes are currently authorized by the FDA.
“It’s a very serious situation and what this bill is intended to do is protect children,” Willett told the Virginia Mercury in an interview last week. “It’s to protect adults who are lawful consumers and then also the wholesalers and retailers themselves.”
Willett said the bills would create a registry of non-flavored products that can be sold in the Commonwealth. These products must be FDA-authorized or under the agency’s application process.
Both legislators said several businesses have sent them letters in support of the bill because they want to make sure they’re selling legal products. Willett said the businesses also “want to protect legal consumers from ingesting undisclosed, harmful chemicals that are found in the unlawful vaping products.”
Representatives from tobacco company Altria emphasized that the bill would clarify for retailers which devices they can and cannot sell. Altria spokesman Steve Callahan told the House of Delegates’ ABC and Gaming Subcommittee in February the legislation “is a common sense solution.”
However, opponents of the bill said it serves to only benefit big tobacco companies at the expense of small businesses and Virginians trying to quit smoking through vapor products.
Tony Abboud with the Vapor Technology Association said there are currently 13 million vapers across the U.S.. Yet, only six different types of FDA-authorized e-cigarettes are currently on the market. He said tobacco companies like Altria would reap the benefits from the legislation and compared the bill to a scenario in which all beer except for Bud Lite and Miller Lite are removed from stores.
“Bud and Miller would love it, right, because they are definitely going to pick up some more customers,” Abboud said.
That didn’t take very long. The global vaping company Plxsur reached its goal of reaching $1 billion in consolidated revenues from its partners in just two years. The company has now successfully partnered with 12 of the world’s leading vaping companies to form what may be the largest and fastest-growing group of independent vaping companies in the world. According to Nigel Hardy, CEO and founder of Plxsur, the company accomplished this with a focus on compliance, governance and reporting, with responsibility at its core.
“We believe having a portfolio of multiple brands is crucial for building a successful reduced-risk product (RRP) business at scale. Our retail sales across the group reflect the impact of Plxsur, which supports adult smokers who have switched to vaping,” explains Hardy. “We have sold products to about 4 million consumers, with retail sales by value of units sold at $1.835 billion. Additionally, our three North Star owned brands, Salt, Allo, and Flavour Beast, are expected to generate retail sales of more than $400 million in 2024.”
Plxsur also has 10 e-liquid manufacturing facilities in six different markets. With that comes the quality management systems to ensure the quality of the raw materials that are coming in and what’s going out. It’s not only about quality control (QC), but also about quality assurance. All e-liquids are manufactured in a minimum ISO 9001-certified facility. Plxsur’s QC program ensures that all products manufactured and distributed meet or exceed all regulatory and legislative requirements in the markets where the products are produced.
ISO 9001 is an international standard specifying quality management system requirements. Organizations use it to demonstrate their ability to consistently provide products and services that meet customer and regulatory requirements. Plxsur only produces its brands of e-liquids. The company does not do third-party manufacturing because the company’s focus is on its products.
Plxsur leadership says its partners have a combined market share representing an estimated 10 percent of the global $19.34 billion vaping market. Hardy said the company is targeting a 20 percent market share in the next five years. The companies include Hale Vaping (Ireland), UEG Holland (Netherlands), DampShop (Belgium), Pro Vape (Latvia), Puff Store (Italy), Nobacco (Greece), Ritchy Group (Czech Republic), Vape Empire (Malaysia), Pacific Smoke (Canada) and CK Complex (Poland).
“The past two years have seen a huge amount of financial and operational progress for Plxsur, and we have grown to become the world’s largest and fastest-growing group of independent vaping companies with consolidated revenues of over $1 billion,” said Hardy.
In 2021, Plxsur was founded by David Newns, Charlie Yates, and Nigel Hardy. The three entrepreneurs shared a vision for the vaping industry and discussed how they could work together to achieve their goals. They believed the key to success was respecting and supporting entrepreneurship while empowering local management teams. They planned to create a global network of independent vaping companies that were both the largest and the most responsible in the industry.
Plxsur, under Hardy’s leadership, believes in improving the businesses it brings on board by focusing on three key aspects of business strategy: governance, compliance, and reporting. Compliance involves adhering to various rules and regulations in the countries and communities where Plxsur businesses operate. This includes regulatory, communication, and marketing compliance, as well as legal compliance related to finance and jurisdiction.
“We’re at a very important and exciting stage in our journey. The companies in that group are not only the best at what they do in their respective markets, but importantly, they share our values.
“They put the consumers first, think big, and take responsibility seriously. All our companies want to make a real difference in the lives of adult smokers by contributing to a smokeless society. We now have a presence in Europe, Asia, and North America, covering the full vaping value chain from manufacturing, wholesale, distribution, and direct-to-consumer, both online and through our global network of over 800 specialist vaping stores.”
In 2023, group revenues increased 40 percent on the previous year to more than $1 billion, with an adjusted EBITDA of over $200 million. The outlook for the global vaping market is strong, and last year, Plxsur commissioned an independent research report that Hardy said is the “most comprehensive consumer study conducted on vaping to date”, using data from an online panel of over 30,000 consumers in six of Plxsur’s markets.
“The opportunity available for RRP across our 12 markets is significant, and I am pleased that our Global Vaping Market Snapshot vindicates the belief that not only will this sector continue to grow at pace, but that vaping is quickly becoming the most popular form of RRP in the market, with adult smokers who switch to vaping likely to remain loyal by navigating the regulatory framework,” he explained. “Our team has established a center of excellence leading a program of capability development to ensure management teams at a local level of the skills to deliver sustained value growth.”
Plxsur and its partners continue raising the bar as a responsible vaping group. All its companies have now committed to the six Plxsur standards (product compliance, manufacturing safety, responsible marketing, youth access, child protection and third-party product compliance) that address the biggest issues the vaping industry faces today. The company has also supported local teams across the group and guided companies in engaging with governments on policy development, particularly around preventing youth access.
“We’re focused on migrating consumers from disposable vapes to rechargeable pod and open systems. This is a key priority for Plxsur and our companies are already delivering huge results. In Q3 of 2023, I’m delighted that our Italian business, Puff, successfully migrated many of their consumers to pod and open devices through its launch as an exclusive distributor of new-to-market pods and e-liquids,” said Hardy. “To keep the momentum going, our portfolio companies have exciting plans to expand their range of pod systems in the first half of this year.”
Unlike traditional business acquisitions, Hardy explained that the company’s partners are not selected based on their financial worth. Plxsur is highly selective in its choice of partners, and financial size is not the only factor determining whether a company is suitable to join the Plxsur team. Hardy cited the example of Pro Vape, a company headquartered in Riga, Latvia, which started its business in late 2016 and met all the necessary criteria to become a Plxsur partner.
“The Baltic market is not particularly a huge market for vaping. What Pro Vape has is a significant presence in Europe,” said Hardy. “Only 40 percent of their business is domestic, and 60 percent is across the rest of Europe.”
Plxsur has specific criteria that businesses must meet before partnering with them. Firstly, the company must be a leader in its channel, whether it is business-to-business or business-to-consumer, or a leading player in its market. Currently, all of Plxsur’s partners meet this benchmark. Secondly, having a healthy balance of company-owned brands within the portfolio is essential, with Plxsur aiming for at least 50 percent of its revenues to be driven by such brands. Thirdly, the most crucial criterion is people.
“Our ability to retain our unique entrepreneurial spirit while growing at a rapid pace has been pivotal to our success over the past two years,” said Hardy. “We remain committed to achieving long-term value for all stakeholders, with responsibility at the core of everything we do. Supported by several tailwinds, including evolving market dynamics and customer preferences, we remain confident in Plxsur’s medium-term prospects and our ability to continue our trajectory to promote responsibility in the sector, achieve our target of over $15 billion in revenues by 2033.”
To achieve the lofty goal, Hardy said Plxsur is well placed to capitalize on the growing trend of vaping across the globe, unlock future value, and play a leading role in shaping the sector’s future on a platform of responsibility. He said Plxsur excels at creating a distinctive, innovative business leadership environment while growing at a pace pivotal to the company’s success over the past two years.
“We continue to see increasing regulation around vaping, particularly disposables, flavors, and marketing,” said Hardy. “At Plxsur, we see regulation as a force for good and encourage appropriate regulation and enforcement to tackle illicit and irresponsible trading behaviors. Last year, we submitted Plxsur’s response to the UK government’s open consultation on creating a smoke-free generation, and we continue to engage with regulators worldwide.
“This engagement with responsibility at the core of everything we do places Plxsur in a prime position to continue to grow, lead the industry, and shape the future of vaping.”
The resolution of an IP dispute with BAT has removed a major hurdle to selling the product in the U.S.
Philip Morris International is preparing to launch its IQOS heated-tobacco device in Austin, Texas, USA, reports U.S. News. The city will be a testing ground for PMI’s re-entry into the United States after the company resolved an intellectual property dispute with British American Tobacco that had prompted the International Trade Commission to ban imports of IQOS in the United States.
PMI previously announced that it planned to launch IQOS in four cities in two U.S. states beginning with one city in the second quarter before a larger rollout in 2025. The company did not, however, release details.
According to U.S. News, LinkedIn job advertisements suggest that PMI is planning to launch the product in Austin. The advertisements were posted this month and include positions such as field sales representatives, territory managers and retail sales advisors.
The U.S. would be a significant market for IQOS. Euromonitor estimates that total U.S. nicotine sales excluding nicotine-replacement therapies were $143.6 billion in 2022. Cigarettes accounted for the majority of sales, but Euromonitor predicts that their value will drop by 30 percent by 2027 and the value of smoking alternatives such as e-cigarettes and nicotine pouches, will increase by 36 percent in the same period.
Investors are waiting to see if PMI can create a heated-tobacco market in the U.S., where vaping is dominant.
According to Brett Cooper, managing partner and analyst at equity research firm Consumer Edge, Texas offers an interesting trial market due to broad demographics. He noted that diverse cities like Austin, Houston and Dallas provide access to a wide range of consumer groups.
U.S. Centers for Disease Control and Prevention data shows that tobacco taxes in Texas are relatively low, with the excise tax rate on a pack of cigarettes standing at $1.41 in September 2023.
In January, Texas introduced new e-cigarette laws, banning products that resemble food or that include symbols or celebrities targeted at minors or that depict cartoon-like fictional characters.
PMI believes IQOS can capture a 10 percent share of the U.S. tobacco and heated-tobacco unit volume by 2030.
Singaporeans are smoking less but vaping more, reports The Straits Times, citing research by Milieu Insight.
The average number of cigarettes smoked per week fell from 72 sticks in the third quarter of 2021 to 56 in the fourth quarter of 2023.
Over the same period, consumption of alternative products like e-cigarettes and vaporizers increased from 3.9 percent to 5.2 percent of the population.
Milieu Insight attributes the gradual decline in cigarettes smoked per week observed since the second quarter of 2022 in part to an increase in proportion of occasional smokers as compared to regular smokers over this period.
Conducted from Dec. 16 to Dec. 29, 2023, the survey found that the proportion of occasional smokers had increased by 1.2 percentage points to 3.2 percent, from the third quarter of 2021 to the last quarter of 2023. There was also an increase in the number of former smokers over the same period.
Vaporizers and e-cigarettes have been outlawed in Singapore. Among the reasons cited for their vaping, respondents said they wanted to reduce secondhand smoke and lessen their consumption of traditional cigarettes. The World Health Organization, however, has rejected the products as a cessation aid.
In December 2023, Singapore’s Ministry of Health and the Health Sciences Authority announced that they were stepping up enforcement and education efforts against vaping to prevent it from gaining a foothold in Singapore.
Airscream UK plans to invest MYR100 million ($21.12 million) in its operations over the next five years and move its headquarters to Malaysia, reports the Business Times.
The company has already set up administrative, sales and marketing operations as well as a showroom in Shah Alam, with close to 40 employees locally and 100 globally.
Airscream founder and CEO Sam Ong cited a robust market and vaping industry ecosystem as reasons for the company’s decision.
Over the past decade, Malaysia’s vaping industry has grown into a MYR3 billion business, providing employment to more than 30,000 Malaysians, according to the Malaysian Vape Chamber of Commerce.
Ong believes the market is poised for further growth, potentially driving more foreign direct investments into the country and bolstering job creation.
“We are also encouraged by the passing of the Control of Smoking Products for Public Health Bill 2023, which brings Malaysia on par to other countries around the world, including the U.K., Australia, Thailand and Singapore, which have standalone legislation on tobacco and vape,” Ong was quoted as saying.
Airscream was established in 2018 as a manufacturer and retailer of the AirsPop vape product.
The U.S. Food and Drug Administartion has again issued warning letters to several small businesses for selling illegal vaping products.
The warning letters handed to 61 brick-and-mortar retailers cite the sale of disposable e-cigarette products marketed under the brand names Elf Bar/EB Design and Lava.
“These warning letters were a result of FDA’s ongoing monitoring of multiple surveillance systems to identify products that are popular among youth or have youth appeal,” the agency wrote in a release. “Findings from the 2023 National Youth Tobacco Survey found that more than 50 percent of youth who use e-cigarettes reported using the brand Elf Bar.
“In 2023, the manufacturer of Elf Bar began marketing the product under the name “EB Design.” In addition, the brand Lava was identified as popular or youth-appealing by the agency following review of retail sales data and emerging internal data from a survey among youth.”
According to the agency, the retailers receiving these warning letters sold or distributed e-cigarette products in the United States that lacked authorization from the FDA, in violation of the Federal Food, Drug, and Cosmetic Act.
Warning letter recipients are given 15 working days to respond with the steps they will take to correct the violation and to prevent future violations. Failure to promptly correct the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties.
To date, the FDA has issued more than 550 warning letters and more than 100 civil money penalty actions to retailers for the sale of unauthorized e-cigarettes. However, few retailers respond to the FDA’s actions.
A ban on disposable vapes will not reduce consumption, according to a Dutch e-cigarette association press release. The announced sales ban on disposable vapes in Belgium, just like the flavor ban in the Netherlands, will not help young people use fewer e-cigarettes, said Emil ‘t Hart, chairman of the Dutch Industry Association of Electronic Cigarette Sellers (Esigbond).
With the ban beginning January 1 next year, Belgium wants to ensure that young people, in particular, use fewer products containing the harmful and addictive substance nicotine. “I wonder how enforceable this is. Vapes are also bought in Belgium through all kinds of channels, such as Chinese online stores or Snapchat. But you can’t stop the online trade with a ban,” Hart claimed.
The chairman said a few days before the Dutch ban came into force in January that people in the Netherlands are circumventing the flavor ban by buying flavored vapes in Belgium and elsewhere. Young people, Hart said, are not as affected by the ban because they too often buy disposable vapes online in China. “The best thing would be to close the gates to China,” he said.
Belgian Minister of Health Frank Vandenbroucke announced the sales ban this week. According to him, Belgium will become the first country in Europe to ban the sale of disposable vapes.
