Tag: news

  • Altria Exchanges Juul Stake for Heated Tobacco IP License

    Altria Exchanges Juul Stake for Heated Tobacco IP License

    Photo: Juul Labs

    Altria Group has exchanged its entire investment in Juul Labs for a non-exclusive, irrevocable global license to certain of Juul’s heated tobacco intellectual property.

    “We believe exchanging our Juul ownership for intellectual property rights is the appropriate path forward for our business,” said Altria CEO Billy Gifford in a statement. “Juul faces significant regulatory and legal challenges and uncertainties, many of which could exist for many years. We are continuing to explore all options for how we can best compete in the e-vapor category.”

    As of Dec. 31, 2022, the carrying value and estimated fair value of Altria’s Juul investment was $250 million. Altria will record the financial impact of the agreement in the first quarter of 2023 and intends to treat any such amounts as a special item and exclude it from its adjusted diluted earnings per share.

    “The return of Altria’s equity stake and termination of underlying agreements affords us full strategic freedom—we are no longer limited by the terms of those agreements to pursue other strategic opportunities and partnerships,” wrote Juul in a statement. “We are free to take advantage of a range of options to maximize the value of our company while we continue to advance our leading product technology and innovation pipeline.”

    In late 2018, Altria paid nearly $13 billion for a 35 percent stake in Juul. “We have long said that providing adult smokers with superior, satisfying products with the potential to reduce harm is the best way to achieve tobacco harm reduction,” said Altria’s then-CEO Howard Willard at the time. “Through Juul, we are making the biggest investment in our history toward that goal. We strongly believe that working with Juul to accelerate its mission will have long-term benefits for adult smokers and our shareholders.”

    Over the years that followed, however, regulatory scrutiny and litigation relating to Juul’s marketing practices severely eroded Juul’s valuation. On June 23, 2022, the U.S. Food and Drug Administration ordered Juul Labs to pull its e-cigarettes from U.S. store shelves, saying the e-cigarette manufacturer had submitted insufficient evidence that they were “appropriate for the protection of the public health.” After Juul challenged the marketing denial order (MDO), the FDA agreed to take another look at the company’s pre-market tobacco product application.

    The agency said it had determined that there are scientific issues unique to the Juul application that warrant additional review. 

    In early September, Juul Labs agreed to pay nearly $440 million to settle a two-year investigation by 33 U.S. states into the marketing of its vaping products, which critics have blamed for sparking a surge in underage vaping.

    On Sept. 30, Altria announced it was ending its noncompete agreement with Juul. The tobacco giant is reportedly in talks to buy Njoy Holdings for at least $2.75 billion. Njoy has a roughly 2 percent of the U.S. vape market by volume, according to Jefferies. Juul, by contrast, accounts for around a quarter of American vapor product sales. Unlike Juul, however, Njoy has FDA permission to sell its products in the U.S.

    “While our appeal of FDA’s now-stayed MDO remains pending, we remain as confident in our science and evidence to support the continued marketing of Juul products,” Juul wrote after Altria announced the exchange of its investment for a license. “We also continue to pursue future applications for new products to accelerate our mission and progress for the adult smoker, public health, and an end to combustible cigarettes.”

  • Voopoo Releases Long-Awaited DRAG 4 Mod

    Voopoo Releases Long-Awaited DRAG 4 Mod

    Image: Voopoo

    Voopoo has released its fourth-generation DRAG mod, the company announced in a press release.

    First created in 2017, the Drag series has distinguished itself with its rapid ignition. In 2019, Voopoo introduced DRAG 2, which featured improved output power and a better vaping experience. Voopoo DRAG 3 was released in 2021, and gave users a unique vaping experience with its Super Burst mode and fast ignition at 0.001 seconds, according to the manufacturer.

    Building on the classic DRAG mod look, the Drag 4 is designed with zinc alloy, leather, solid wood elements and natural resins.

    The device’s Uforce-L Tank adopts the industry’s original 360 degrees stepless air adjustment ring. With free adjustment and easy control of airflow, it effortlessly generates the sought-after cloudy vapor. The Dual In One Coil accelerates atomization heating and increases atomization efficiency, thus enhancing vapor explosion and delivering rich and delicate flavors.

    With the newly added multifunction switch, the QS lock can be set to lock the wattage, the device or the power. An improved user interface with clearly separated function keys reduce the chance of unintended ignition. The chip automatically identifies the most commonly used heating material and adjusts its temperature to a recommended range.

    Eco mode increases the battery service life by at least 10 percent.

  • Yocan Tech Launches Latest GTG Vaporizer

    Yocan Tech Launches Latest GTG Vaporizer

    Image: Yocan Tech

    Yocan Tech has launched Yocan Pillar, a vaporizer featuring TGT heating technology, according to a company press release.

    The product’s TGT coil comprises ceramic donut and quartz XTAL rod. Instead of leading the liquid straight to a coil, the device directs it to the ceramic donut and melts it onto the XTAL rod.

    In combination with its use of water-filtered concentrate, the coil allows for strong yet smooth hits, according to the manufacturer.

    Yocan Pillar’s main body is made of zinc alloy with a glass mouthpiece and magnetic connection.

    The device allows users to choose between three voltage levels, specified by an indicator light. Higher voltage levels offer more efficient extraction, while lower voltage levels will provide intense flavor. A 30-second heat-up time allows users to extract all active ingredients in one hit.

    Yocan Pillar are available with in Pearl Black, Pearl White, Pearl Orange, Pearl Teal and Pearl Green.

  • Survey: MEPs Lack Knowledge on New Nicotine Products

    Survey: MEPs Lack Knowledge on New Nicotine Products

    Members of the European Parliament (MEPs) are less aware of key issues surrounding new nicotine products than in previous years despite being asked to vote on important new legislation concerning the topic in the coming months, according to a new survey, reports BusinessWire.

    The third annual survey, conducted by business intelligence researcher Tamarind Intelligence, publisher of ECigIntelligence and TobaccoIntelligence, shows that the more MEPs know about new nicotine products (e-cigarettes, nicotine pouches and heated tobacco), the more likely they are to consider that these products are less harmful than cigarettes.

    The report shows that: MEPs rarely believe that new nicotine products are as harmful as smoking—only 19 percent of responses, the lowest number since the annual survey was launched in 2020—and a majority believe they are less harmful than smoking; MEPs with no knowledge of new nicotine products are becoming far more likely to acknowledge that they don’t know the risks; MEPs with some knowledge of new nicotine products strongly tend to believe (76 percent of responses) that they are less harmful than smoking; and while very few MEPs consider that new nicotine products should be more restricted than traditional tobacco, and a majority believe online sales should be allowed for adults (with age verification), more MEPs are unsure how they should be regulated than in previous years.

    “Our third annual MEP survey results are particularly relevant given the recent launch of the European Commission’s public consultation on evaluating the legislative framework for tobacco control at the end of February 2023 and the adoption by the European Parliament of the BECA committee’s recommendations over a year ago,” said Tim Phillips, managing director of Tamarind Intelligence. “As some of the questions in the commission’s consultation are similar to the ones we asked in our MEP survey, it will be fascinating to see if MEPs’ views on the topic of new nicotine products will be in line with responses to the public consultation.”

    The survey was carried out online and anonymously, and all data from it remains confidential other than as used in consolidated analysis. The survey was sent to all MEPs (from all member states and political parties), and responses were obtained from 43 MEPs representing 6 percent of the European Parliament.

  • Eighth Circuit Upholds Minnesota City Flavor Ban

    Eighth Circuit Upholds Minnesota City Flavor Ban

    Credit: Victor Moussa

    Federal law doesn’t block a ban on sales of flavored vaping products, menthol cigarettes and other flavored tobacco products in Edina, Minn., the Eighth Circuit ruled Monday in a case brought by R.J. Reynolds Tobacco Co. and related companies, according to Bloomberg Law News.

    The appeals court affirmed a lower-court ruling that kept the ban in place, on the same day that the U.S. Supreme Court declined to hear a tobacco company challenge to a similar law in Los Angeles.

    The unanimous panel of the U.S. Court of Appeals for the Eighth Circuit joined other federal appeals courts in holding that a local ban on tobacco products is constitutional.

  • Elfbar to Rebrand as EB Design After Trademark Loss

    Elfbar to Rebrand as EB Design After Trademark Loss

    Photo: Olivier Le Moal

    Shenzhen Weiboli Technology Co. plans to relaunch its Elbar e-cigarettes under the name EB Design in the United States after losing a trademark dispute in court, reports 2Firsts.

    On Feb. 23, a federal judge ordered Weiboli to stop marketing its Elfbar e-cigarettes in the U.S., finding that VPR Brands, which makes and sells Elf brand vapes, is likely to succeed on its claims that the Elfbar vapes infringe its trademark

    In an interview with 2Firsts, Elfbar’s North American public relations manager said that while Elfbar would launch its new name in March, the brand would retain its original logo. The letters E and B in “EB Design” are believed to represent the initials of Elbar.

    Elfbar’s American PR manager said the company would continue to focus on the United States. The brand’s U.S. suppliers and distributors market are aware of name change and prepared for it, he noted.

  • Top Court Declines to Hear LA County Flavor Ban Appeal

    Top Court Declines to Hear LA County Flavor Ban Appeal

    Image: Tobacco Reporter archive

    The U.S. Supreme Court on Feb. 27 declined to hear an appeal by three Reynolds American Inc. subsidiaries seeking to overturn the county of Los Angeles ban on flavored tobacco products, reports Law360.

    R.J. Reynolds Vapor Co., American Snuff Co. and Santa Fe Natural Tobacco Co. had petitioned the high court in October to take another look at the case after the full 9th Circuit upheld a lower court’s dismissal of the suit.

    The RAI companies said the 9th Circuit had twice before erred in allowing sales bans at the state and local level that were preempted by federal law.

    While the federal Tobacco Control Act grants state and local municipalities broad authority to regulate the sale of tobacco products, it does not allow them to completely prohibit the sale of those products for failing to meet state or local tobacco product standards, the companies argued.

    In dismissing their initial suit, District Judge Dale S. Fischer in 2021 found that the ban doesn’t regulate tobacco product standards. The judge said the ordinance is protected by the federal law’s preservation clause, which allows states and localities to prohibit the sale of tobacco products even if those bans are stricter than federal law.

    The companies appealed, calling the ban unconstitutional and saying state and local governments can’t bar the sale of tobacco products because they disagree with federal tobacco standards.

    L.A. County countered that the ban doesn’t pose an obstacle to federal policy since the FDA announced it intends to ban menthol cigarettes and all flavored cigars.

  • UKVIA Updates Guidelines to Preventing Underage Sales

    UKVIA Updates Guidelines to Preventing Underage Sales

    The U.K. Vaping Industry Association has updated its guide to retailers on preventing underage sales.

    UKVIA Director General John Dunne said tackling the sale of vaping products to minors was “one of the most fundamental challenges facing the industry.”

    The UKVIA is making its “Preventing Underage Sales Guide” freely available via its website.

    The 20-page guide has been developed in partnership with the association’s Primary Authority Partners, Buckinghamshire and Surrey and Trading Standards.

    Dunne said: “The entire UKVIA membership is united behind the message that we must do all in our power to stop underage sales.

    “This is one battle that we simply have to win, but we need the support of government, regulators and enforcement authorities in order to do so.

    “Our underage sales guide will give retailers all the information they need so that they don’t inadvertently sell to someone under 18.

    “Policymakers, politicians and consumers must have confidence that the vaping industry is a responsible sector, and this will be undermined if businesses do not implement and uphold robust age verification processes.

    “The guide gives clear advice on how to implement a ‘Challenge 25’ policy and why it is important that anyone who appears to be younger than 25 should be asked to provide ID.”

  • Atria in Talks to Purchase NJOY for $2.75 Billion

    Atria in Talks to Purchase NJOY for $2.75 Billion

    In a long suspected move, Altria Group Inc. is in advanced talks to buy e-cigarette manufacturer NJOY Holdings Inc for at least $2.75 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.

    The deal for NJOY, one of the few non-tobacco-company-affiliated vapor makers whose products have received a marketing order from the U.S. Food and Drug Administration, could be announced as soon as this week, the report said, adding that the talks could still fall apart.

    It’s reported that the proposed deal includes an additional $500 million earnout if regulatory milestones are met.

    In October Juul was readying to file for Chapter 11 bankruptcy, while searching for an alternative – such as a sale, investment or loan,

    In July, NJOY reportedly hired bankers for a possible sale of the company, adding that the privately held firm is likely to be valued at up to $5 billion.

  • Vaping Industry Unimpressed by CTP ‘Reset’

    Vaping Industry Unimpressed by CTP ‘Reset’

    Photo: aleksandar kamasi

    Vaping industry representatives are unimpressed by the U.S. Food and Drug Administration’s plan, announced Feb. 24, to address the shortcomings in the operations of its Center for Tobacco Products (CTP) identified by independent evaluators working through the Reagan-Udall Foundation.

    “While the devil is in the details, nothing in today’s announcement hinted at any material shift in FDA’s perpetual attack on every nicotine-containing product,” Tony Abboud of the Vapor Technology Association told AP News.

    The CTP has come under fire from various sides, with health advocates urging the agency to more aggressively police regular cigarettes and flavored e-cigarettes, and tobacco companies complaining that the FDA is unwilling to approve new products, including e-cigarettes, which might help adults quit smoking.

    To address such criticisms, FDA Commissioner Robert Califf in July 2022 ordered an independent investigation into the CTP’s operations.

    On Dec. 19, 2022, the Reagan-Udall panel issued a blistering report. Evaluators described the FDA as “reactive and overwhelmed,” with a demoralized workforce that struggles to oversee both traditional tobacco products and a freewheeling e-cigarette market.

    In response, the FDA pledged a reset to the agency’s tobacco program. The CTP director promised to develop a five-year plan by the end of 2023 outlining priorities, including efforts to clean up a sprawling market of largely unauthorized electronic cigarettes. The agency also said it would provide more transparency to companies about its decisions, following the rejection of more than 1 million applications from e-cigarette makers seeking to market their products as alternatives for adult smokers.

    Nothing in today’s announcement hinted at any material shift in FDA’s perpetual attack on every nicotine-containing product.

    Tony Abboud, executive director, Vapor Technology Association

    Vaping industry representatives expressed disappointment with the FDA announcement, which they said would continue to result in denials for most vaping products.

    “After the scorching findings from the Reagan-Udall report, the FDA should be issuing a mea culpa to the American public for the calamity created by the agency’s insistence on crushing the nicotine vaping market,” the American Vapor Manufacturers Association wrote in a statement.

    “But instead of taking responsibility, the agency is proposing yet more task forces, more bureaucrats and even a so-called ‘five-year plan,’ which is government shorthand for punt, retreat, and see you later. It’s not good enough, not by a long shot, and the millions of Americans relying on vaping products to stay off cigarettes have once again been bast to the wind by the FDA’s chronic negligence and indifference.”

    Americans for Tax Reform described the CTP’s response as “inadequate,” saying it fails to address the critical issues highlighted by the Reagan-Udall Foundation. “Since [CTP] Director King and FDA are clearly unwilling to step in and fix the problems plaguing the Center for Tobacco Products, this falls upon Congress, and specifically the new Republican House Majority, to use oversight powers to reestablish trust in FDA and improve public health,” the group wrote in a statement.