Tag: e-cigarettes

Louisiana Businesses Struggling Under Vape Tax

Baton Rouge, capital of Louisiana (Credit: Fang)
Vaping product taxes and regulations in Louisiana may be taking a devastating toll on small businesses.
Unlimited Vapor, according to the Shreveport Times, stands with limited supply due to the recent increase in state taxes on nicotine vape products and e-cigarettes. On June 15, 2023, Louisiana Gov. John Bel Edwards signed into law the bill to increase the excise tax on vapes from 5 cents per milliliter of nicotine solution to 15 cents.
“We usually special order it for customers, if they know what flavor they want, what milligram they want, because of the excise tax going up as high as it is, we don’t want to order it and have it just sitting there,” said Selena Price, manager of Unlimited Vapor.
The tax increase went into effect on July 1, and is only impacting Louisiana. Border states such as Texas, Arkansas and Mississippi have no excise tax on vape and e-cigarette products.
Rep. Paul Hollis of Covington sponsored House Bill 635 Act 414 to discourage the use of vape and e-cigarette products through an increase in excise tax. The Shreveport Times reached out to Hollis for a statement, but did not receive a response.
Many are calling the new rules a de-facto flavor ban. It tripled the tax on vape liquid from 5 cents per milliliter to 15 cents per milliliter and earmarks the revenue the tax will generate for pay raises for state troopers. This has forced many products off of vape shop shelves. This is forcing most vape products off of store shelves.
The legislation, Act 414 by Rep. Paul Hollis, started out as a bill to increase the tax on vapes, with Hollis saying he wanted to discourage their use. But it quickly morphed into a broader law that dramatically scales back what vapes can be sold, after wholesalers, major tobacco companies and legislators concerned with youth use got involved.
August 14, 2023
WVA Says Hungary Proposed Vape Rules Excessive

The World Vapers’ Alliance (WVA), a global vaping consumer advocacy group, has great concern for the Hungarian Government’s draft decree which aims to amend the current regulation of nicotine pouches and vaping.
The proposed regulations, if enacted, would introduce restrictions that may hinder access to safer alternatives for smokers and harm reduction options, according to an emailed press release.
Michael Landl, director of the World Vapers’ Alliance, said, “While it’s important to ensure the safety and proper labelling of nicotine products, it’s equally crucial to avoid excessive regulation that could impede the availability of harm reduction products for smokers looking to transition away from combustible cigarettes.”
The proposed amendments, with a maximum nicotine content of 17mg per consumption unit reflect an approach that may inadvertently limit the appeal of nicotine pouches to smokers seeking alternatives.
“Moreover, the WVA expresses concerns about the potential implications of the draft Decree’s proposed modifications to vaping product regulations,” the release states. “The amendments, which target unit packet definitions, nicotine amounts, and labelling requirements, could impose unwarranted restrictions on vaping products. While addressing health concerns is important, the proposed changes should be carefully evaluated to ensure they do not deter smokers from adopting less harmful alternatives.”
Whilst health and safety standards are crucial, regulations should be crafted with a balanced approach that considers both consumer health and the potential of these products to save lives, according to Landl.
“We encourage the Hungarian Government to start accepting reality: harm reduction works! This year, Sweden is becoming the first smoke-free country due to a consumer-friendly harm reduction approach,” he said. “It is high time to learn from the Swedish experience and thereby save thousands of Hungarian lives. With a smart harm reduction approach, Hungary can become smoke-free.”
The standstill period for review and objection by the European Commission and Member States ends on 8th November 2023, after which the Hungarian Government may enact the proposed regulations. The WVA remains committed to advocating for evidence-based policies prioritizing public health and consumer choice.
August 14, 2023
McKinney Regulatory Science Reveals New Website

McKinney Regulatory Science Advisors has launch its new website that promises “a new era of innovation and transparency for their clients,” according to a press release.
The new platform describes an array of advisory services to nicotine and cannabis clients, with an emphasis on providing McKinney clients with the best available regulatory services.
Willie McKinney, CEO of McKinney, said the new website represents a significant milestone in journey to provide exceptional advisory services to our nicotine and cannabis clients.
“The revamped platform reflects our dedication to innovation, transparency, and client satisfaction, making it easier for clients to explore our services and access valuable regulatory resources,” he said
The new website offers a modern design that makes it easy for users to find the information they need quickly. It also features an intuitive navigation system that allows users to identify relevant services and access helpful resources rapidly, according to McKinney. Additionally, the site is optimized for mobile devices so that users can access the site from any device at any time.
“McKinney RSA focuses on providing comprehensive solutions that meet complex regulatory requirements while also delivering superior customer service,” the release states. “With decades of industry experience under their belt, they are committed to helping their clients succeed by providing top-notch guidance every step of the way.”
August 14, 2023
Study Finds Flavors Helps Smokers Quit Smoking

Credit: Юлия Кравченко
Recent research suggests that people are more likely to quit smoking combustible cigarettes by vaping if they receive help choosing the right flavor, plus supportive messages.
The Addiction journal recently published a study conducted by London South Bank University (LSBU) that involved 1,214 eligible participants who were heavy smokers and expressed interest in quitting by using vapes. The researchers recruited these participants through social media.
They then tested five remote interventions aimed at helping people switch—mostly online surveys that produced recommendations based on individual responses, reports Filter. The interventions were: “tailored device selection advice; tailored e-liquid nicotine strength advice; tailored e-liquid flavor advice; brief information on relative harms; and text message (SMS) support.”
“Simple tailored advice on selecting a flavor along with supportive text messages could increase quit rates by 55 percent.”
By offering different groups of participants different interventions (including all, or none of them), the study sought to determine which combination was most effective.
“In the adjusted model,” the researchers concluded, “the only significant interaction was a two-way interaction, advice on flavor combined with text message support, which increased the odds of abstinence [from cigarettes].”
August 13, 2023
Pyxus First Quarter Revenue Up Nearly 40 Percent

Pyxus International, parent to Purilum e-liquids, announced results for its fiscal quarter ended June 30, 2023.
Sales and other operating revenues were $477.1 million, up 38.7 percent compared to 2022. Operating income increased $29.4 million to $36.4 million. Net income was $0.8 million, improving $15.5 million. Adjusted EBITDA increased $27.5 million to $43.5 million.
For the full 2024 fiscal year, Pyxus continues to expect sales to be between $1.9 billion and $2.1 billion and adjusted EBITDA to be between $155 million and $180 million.
“Fiscal 2024 is off to a strong start with higher tobacco prices, accelerated timing of shipments and a favorable shift in customer mix fueling a 39 percent increase in revenue and improved profitability compared to the prior year,” said Pyxus President and CEO Pieter Sikkel in a statement.
“In the first quarter of fiscal 2024, we believe we reached the peak of our fiscal 2024 tobacco purchases as we significantly accelerated our buying, using our geographic footprint to acquire tobacco inventory from multiple markets to meet higher current crop supply requirements and customer demand for fiscal 2024. Customer shipments in fiscal 2024 will utilize a higher percentage of tobacco purchased during the current fiscal year to fulfill orders compared to the prior year given our uncommitted inventory continues to be historically low.
“Our continued focus on aggressively managing our working capital provided sufficient liquidity through short-term borrowings under our foreign seasonal lines of credit, availability under the ABL Credit Facility, cash generated from operations and cash collections from our securitized receivables to purchase larger volumes of more expensive tobacco compared to the prior year. In the first quarter of fiscal 2024, we increased our purchases of inventory by more than $100 million compared to the prior year using $40 million of incremental foreign seasonal lines of credit and our improved cash conversion cycle.
“We anticipate ongoing strong demand as undersupply conditions are expected to persist through fiscal 2024. We believe our positive first-quarter results position the company to achieve our previously announced fiscal 2024 guidance for sales between $1.9 billion and $2.1 billion and adjusted EBITDA between $155 million and $180 million. We are proud of the progress our global teams have made thus far and thank them for their unwavering commitment to our customers and their focus on achieving the company’s objectives so that together we can grow a better world.”
The company held a conference call to report financial results for the period ended June 30, 2023, on Aug. 10, 2023, at 9:00 a.m. Eastern Time. For those who were unable to listen to the live event, a telephonic replay of the conference call will be available by dialing (647) 362-9199 or (800) 770-2030 and entering the access code 2624736.
August 10, 2023
More Vapers Could Save U.K. Half A Billion Pounds

Image: Tobacco Reporter archive
The U.K. National Health Service (NHS) could save over GBP500 million ($636.9 million) annually if half of England’s adult smokers switch to vaping, according to a Brunel University London report.
“If smokers transitioned to RRPs [reduced-risk products], it would significantly reduce the pressure on the NHS and free up much-needed hospital resources for other treatments,” said Francesco Moscone, professor and business economics expert at Brunel University London and study author. “Under a 50 percent conversion scenario, with half of smokers turning to RRPs, the NHS would save an estimated [GBP]518 million in an average year. If the conversion rate was just 10 percent, the NHS would save [GBP]103 million.”
“We are delighted that this new research from Brunel University London reinforces the findings of our own economic impact report,” said John Dunne, director general of the U.K. Vaping Industry Association, in a statement. “The potential savings to the NHS from smokers switching to vaping are enormous, and at a time when the NHS is desperately crying out for more funding and government budgets are squeezed so tightly, this is an opportunity we cannot afford to miss.
“I sincerely hope that these two reports will give the government more impetus to really push the positive impacts that vaping has for the health of our nation and the finances of our country.
“Only last week, ASH [Action on Smoking and Health] revealed shocking data, which showed that four in 10 smokers wrongly believe vaping is as or more harmful than smoking—up from one in five in 2019.
“Misinformation in the mainstream media about the relative health risks of smoking and vaping was one of the reasons given for this increasing lack of knowledge, and unless the government acts to educate smokers about the real risks, then lives will continue to be needlessly lost.”
“Cancer, heart disease, stroke, chronic bronchitis and emphysema are the five main disease categories caused by smoking cigarettes. Such illnesses put significant burdens on the NHS, which we know is already under increasing pressure,” said Moscone. “Although the long-term effects of RRPs are still unknown, we know from previous research that alternatives to traditional cigarettes result in a 90 percent reduction in the exposure to chemicals that are major contributors to health risks.”
The study was published in the British Journal of Healthcare Management.
August 9, 2023
Registration Open for US FDA Tobacco Strategic Plan

Registration is open for the virtual listening session on the development of the Center for Tobacco Products’ (CTP) five-year strategic plan, which will take place on Aug. 22 beginning at 10 a.m. EDT.
The virtual listening session is an opportunity to verbally provide open public comment on the development of the new strategic plan, including proposed strategic goals. After introductions, the center will begin the listening session with an overview of the process used to develop the CTP’s strategic plan, including proposed goal areas.
Registered speakers will then have approximately four minutes each to verbally share their comments on any topics related to the strategic plan. Submit a request to verbally provide open public comment by Aug. 14 at 11:59 p.m. EDT.
Registration also includes a “listen-only” option for those who want to attend the session but do not request to speak. Listen-only registration slots are unlimited, but registration is required. There is no deadline to register for listen-only slots.
In addition to this listening session, the public can submit electronic or written comments to the Federal Register notice. Electronic comments must be submitted, and written comments must be postmarked, by Aug. 29.
August 8, 2023
Many Smokers Have Misperceptions About Vaping

Image: Tobacco Reporter archive
A large portion of smokers have misperceptions about vaping, thinking it is just as harmful or more harmful than smoking, according to the most recent Action on Smoking and Health (ASH) survey data.
The data shows that “among the 1.8 million smokers who are yet to try vaping, 43 percent believe e-cigarettes are as harmful or more than smoking, up from 27 percent in 2019.” It also shows that “among the 2.9 million smokers who have tried vaping but stopped, 44 percent believe vaping is as harmful or more than smoking, up from 25 percent in 2019.”
Due to the large proportion of misperception, ASH feels that its swap to stop program is “threatened by growing concerns among smokers that vaping is as or more risky than smoking.”
“The government has backed a vaping strategy as its path to reduce rates of smoking, but this approach will be undermined if smokers don’t try vapes due to safety fears or stop vaping too soon and revert to smoking. The government must act quickly to improve public understanding that vaping poses a fraction of the risk of smoking,” said Hazel Cheeseman, deputy chief executive of ASH.
Groups such as the Independent European Vape Alliance (IEVA) and the U.K. Vaping Industry Association (UKVIA) support ASH’s stance on government action.
“It is abundantly clear that the lack of knowledge amongst smokers about the relative risks about smoking and vaping is a public health issue that the government can no longer ignore,” said John Dunne, UKVIA director general. “The ASH report highlights that misleading and inaccurate stories and headlines about vaping in the mainstream media plays a huge part in this knowledge gap, which is preventing smokers’ switch to a much less harmful alternative to cigarettes.
“The public needs to know that the scare stories regularly reported in the mainstream media are simply not true, and we urgently need an antidote to this highly damaging misinformation.
“The industry is not permitted to make health claims about the relative harms of smoking and vaping, but keeping the public in the dark about this means hundreds of smokers continue to needlessly die in the U.K. every day because they don’t have the information they need to switch.
“We must be allowed to set the record straight, and the government should launch a nationwide public information campaign so that the relative risks of smoking and vaping are accurately communicated.”
Ann McNeill, professor at King’s College London and author of a government-commissioned review on the harms from vaping, according to Talking Retail, commented: “Anxiety over youth vaping is obscuring the fact that switching from smoking to vaping will be much better for an individual’s health. It is wrong to say we have no idea what the future risks from vaping will be.
“On the contrary, levels of exposure to cancer-causing and other toxicants are drastically lower in people who vape compared with those who smoke, which indicates that any risks to health are likely to be a fraction of those posed by smoking.
“We must not be complacent about youth vaping, and further regulation is needed, but so, too, is work to ensure many more adults stop smoking, and vaping is an effective means of doing that.”
August 7, 2023
Philippines: New Rules for Vape Supplier Imports

Port of Manila, Philippines. Seaport loading cranes in sunset light. (Credit: Tupon Gato)
The Bureau of Internal Revenue (BIR) in the Philippines said it will require importers of raw materials for vaping products to seek special clearances to release their shipments.
The agency cited the need to impose order on an industry with many emerging players, according to media reports.
“For vape products, we are going to require them to (apply for) the authority to release imported goods for raw materials,” BIR Commissioner Romeo Lumagui, Jr. said. “We are thinking of ways to regulate because there are so many vape products now. The production of vape products is a backyard industry, so we’re thinking of ways to regulate it.”
In its latest revenue memorandum circular, the BIR announced that it is now requiring importers or manufacturers of raw materials and equipment used to make heated tobacco products and vapor products to apply for an authority to release imported goods.
“The raw materials specially used for the manufacture of heated tobacco products and vapor products shall include but are not limited to: propylene glycol, vegetable glycerin, organic sweetener, artificial flavoring, and nicotine,” according to the circular.
Devices used for the manufacture of these products will also include but are not limited to mechanical or electric heating elements/atomizers, circuits, cartridges, reservoirs, pods, tanks, mods, and mouthpieces.
Apart from the authority to release imported goods, importers and manufacturers must also apply for a permit to operate. Lumagui said that the BIR is working on addressing the shortfall from excise tax collections, which is mainly due to illicit tobacco.
“We’re targeting to minimize that 20 percent (shortfall). Within the year, we can cut that by more than half… ultimately, I want to make sure to fully resolve that shortfall,” he said.
August 7, 2023
Kaival Brands Group Changes Top-Level Leadership

Credit: Mia B
Kaival Brands Innovations Group, parent to Bidi Vapor, today announced the promotion of Eric Mosser, its current president and chief operating officer, to the position of CEO. Mosser brings over a decade of senior leadership experience, including since 2020 at Kaival Brands. Mosser will retain the position of president, according to a press release.
The company also also appointed Thomas J. Metzler as the company’s chief financial officer (CFO), treasurer and secretary, effective as of August 1, 2023, replacing Mark Thoenes, who has served as Interim CFO since 2021.
Metzler brings over 20 years of finance and operational experience in the vaping and consumer products sector, previously serving as managing director of a division of Turning Point Brands.
At Turning Point Brands, Metzler led a team to transform the process of financial management efficiencies, which improved cost controls, managed inventory turn, developed strategic product promotions to accelerate product distribution, and built strategic alliances with suppliers.
“We are very excited to have Tom join our senior management team and believe his hiring represents a key building block for the future of Kaival Brands, said Mosser. “Tom brings to us a wealth of experience and knowledge across all of the key elements of the CFO’s office including treasury, finance, and accounting.
“He also has tremendous knowledge of business operations in our industry and will therefore greatly contribute to the crafting and implementation of our growth plans. On behalf of our board of directors, we welcome Tom and give thanks to Mark Thoenes for his excellent work as our interim CFO the past few years.”

August 6, 2023