Tag: news

  • Minimum Market Prices Set for Vapes in Philippines

    Minimum Market Prices Set for Vapes in Philippines

    The Philippine Bureau of Internal Revenue (BIR) has set a floor price for heated, vapor and other electronic nicotine-delivery systems (ENDS), reports ABS-CBN News

    The floor price for a 0.7 ml pod of nicotine is PHP131.04 ($2.29). For 1.8 ml and 1.9 ml nicotine salts, the minimum prices are PHP306.88 and PHP318.08, respectively.

    Meanwhile, the floor price for a 15-ml bottle of conventional freebase nicotine is PHP207.2. A bottle that contains 30 ml of classic nicotine has a PHP352.8 minimum price. 

    According to BIR East NCR director Edgar Tolentino, the new guidelines will help the economy and protect the health of minors. 

    “BIR will have exclusive jurisdiction over taxpayer registration, setting the products’ floor price, drafting and publication of revenue regulations covering vape items,” Tolentino said. 

    He also said the newly appointed BIR Commissioner Romeo Lumagui Jr. has a mandate to crack down on illicit vape traders. 

    “We need to support the plans of the commissioner; one thing is to focus on illegal vape sellers because if smuggling persists we will be losing huge revenues from vape products,” he said. 

    Since 2019, the government has collected about PHP15.3 billion in vape taxes. 

  • Marijuana Research Bill Heads to U.S. President’s Desk

    Marijuana Research Bill Heads to U.S. President’s Desk

    Credit: Jose

    For the first time, a standalone piece of marijuana reform legislation has been sent to the U.S. president’s desk. The “Medical Marijuana and Cannabidiol Research Expansion Act” is just one signature away from historic enactment.

    Just weeks after President Joe Biden issued a mass marijuana pardon and directed a review of the drug’s scheduling status, the U.S. Senate approved a House-passed bipartisan cannabis research bill on Wednesday.

    Senate Majority Leader Chuck Schumer said he is continuing to have “productive talks” about a broader package of cannabis reforms. He hopes to pass them before the end of Congress’ lame duck session, according to Marijuana Moments.

    The bill “would eliminate the red tape that hinders cannabis research, opening the door for new innovative treatments derived from cannabis,” Schumer said ahead of the vote. “If you’re one of the millions of Americans who deals with conditions like Parkinson’s or epilepsy or post-traumatic stress, or any number of other conditions, cannabis might hold promising new options for managing these diseases.”

    “We need to do the research first,” he said. “And the federal government, sadly, has been woefully behind the times on this front. This bill will help fix that.”

    Numerous marijuana measures have been filed and advanced in each chamber in recent sessions, however, reform has consistently stalled before reaching the president.

    The bill was filed in July and quickly moved through the House before being taken up by the Senate, which approved the legislation under unanimous consent.

  • Vuse Market Share Over 40%, Juul Drops Below 28%

    Vuse Market Share Over 40%, Juul Drops Below 28%

    Credit: RJR Vapor Co.

    The Vuse e-cigarette continues to widen its market share lead over Juul in both monthly and yearly comparisons.

    The latest Nielsen analysis of convenience-store data, released Tuesday, covers the four-week period ending Nov. 5.

    Owned by R.J. Reynolds Vapor Co., Vuse’s market share rose from 40 percent in the previous report to 40.4 percent, compared with Juul declining from 28 percent to 27.6 percent, according to the Winston-Salem Journal.

    Vuse expanded its year-over year advantage to 34.4 percent to 31.5 percent compared with 33.6 percent to 32 percent in the previous report.

    As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share.

    According to Barclays, Nielsen largely covers the big chains. For the smaller chains, such as vape shops, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.

    No. 3 NJoy was unchanged at 2.8 percent and Fontem Ventures’ blu eCigs was unchanged at 1.4 percent.

    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 20.1 percent decline in the latest report.

    By comparison, Reynolds’ Vuse was up 35 percent in the latest report, while NJoy was up 7.6 percent and blu eCigs down 35.4 percent.

    On Nov. 11, Juul confirmed it is eliminating up to 400 jobs and obtaining financing from its earliest investors.

    Multiple media outlets, first by the Wall Street Journal and cable business channel CNBC, reported the downsizing initiative also includes slashing its operating budget by between 30 percent and 40 percent.

  • FDA Warns 5 Vapor Businesses for Illegal Marketing

    FDA Warns 5 Vapor Businesses for Illegal Marketing

    The U.S Food and Drug Administration issued warning letters to five firms on Wednesday for the illegal marketing of 15 different e-cigarette products.

    The letters were issued to Wizman Limited doing business as Wizvapor, Shenzhen Fumot Technology Co., doing business as R and M Vapes, Shenzhen Quawins Technology Co., Ruthless Vapor and Moti Global.

    According to the FDA, all 15 products are packaged to resemble toys, food or cartoon characters.

    “The designs of these products are an utterly flagrant attempt to target kids,” said Brian King, director of the FDA’s Center for Tobacco Products. “It’s a hard sell to suggest that adults using e-cigarettes with the goal of quitting smoking need a cartoon character emblazoned across the front of the product in order to do so successfully.”

    None of the manufactures have submitted a premarket tobacco product application (PMTA) for the unauthorized products. The items described in the warning letter include e-cigarettes that are designed to look glow sticks, walkie talkies and Nintendo Game Boy game systems.

    “The FDA is committed to keeping tobacco products out of the hands of our nation’s youth,” said King. “The agency will continue to hold companies accountable for illegally selling e-cigarettes, particularly those that shamelessly target youth.”

    Additionally, the products feature characters from cartoons and media that are aimed at a youth and/or teen demographic including The Simpsons, Family Guy, Squid Game, Rick and Morty, Minions and Baby Bus, as well as imitate youth appealing foods such as popsicles.

    Last month, the U.S. Department of Justice (DOJ) filed complaints for permanent injunctions in federal district courts against six e-cigarette manufacturers on behalf of the FDA. The cases represent the first time the FDA has initiated injunction proceedings to enforce the Federal Food, Drug, and Cosmetic (FD&C) Act’s premarket review requirements for new tobacco products.

    The FDA states that each of the defendants failed to submit PMTAs for their e-cigarettes and have continued to illegally manufacture, sell, and distribute their products, despite previous warning from the FDA that they were in violation of the law.

  • Vape Group Files Amicus Brief Over Flavor Ban

    Vape Group Files Amicus Brief Over Flavor Ban

    Photo: David

    The Vapor Technology Association (VTA) has filed an amicus brief with the U.S. Supreme Court in support of a petition for writ of certiorari in a case against L.A. County’s ordinance banning flavored tobacco products.

    Citing the substantial impact on America’s economy created by the sale of tobacco products, the trade group says Supreme Court review of the flavor ban is critical.

    According to an economic impact report prepared by John Dunham and Associates, the independent vapor industry comprises more than 10,000 companies across the United States and is responsible for generating more than 130,000 jobs and more than $22 billion in economic activity for the U.S. economy.

    In its amicus brief, the VTA argues that this industry would be devastated by unrestricted flavor bans given its unique and substantial reliance on the sale of flavored vapor products to adult consumers.

    The trade group also notes that since the passage of the L.A. County Ordinance, leading tobacco control scientists have challenged the notion of banning e-cigarette flavors and have warned that decreasing availability of flavored vaping products harms the ability of adult smokers to quit smoking cigarettes.

    Instead of blanket bans, these tobacco control scientists endorse alternative time, place and manner restrictions for the sale of flavored vaping products, the VTA notes in its amicus brief.

    Permitting local and state governments to implement unscientific bans that directly interfere with the fundamental purpose of the Tobacco Control Act and would overrule the Food and Drug Administration’s decision-making for products deemed appropriate for the protection of public health is not only unlawful but is dangerous from a public health perspective, the VTA wrote.

    Tobacco and vape flavor bans have gained momentum in the U.S. On Nov. 8, Californians voted to uphold a state law ending the sale of most flavored tobacco products.

  • Solons Must Seize Potential of Safer Nicotine Products

    Solons Must Seize Potential of Safer Nicotine Products

    Knowledge-Action-Change (KAC) has published The Global State of Tobacco Harm Reduction 2022: The Right Side of History. The Global State of Tobacco Harm Reduction (GSTHR) publication charts the history of tobacco harm reduction and considers the future of a strategy that can hasten the end of smoking and drastically reduce smoking-related death and disease worldwide.

    According to the report’s authors, the emergence of new safer nicotine products has caused substantial disruption to nicotine use, public health and tobacco control institutions and the traditional tobacco industry. However, mistrust and ideological opposition is hampering widespread adoption of a strategy that could help 1.1 billion adult smokers failed by existing tobacco control interventions.

    “Technology helped smoking become one of the world’s biggest health problems,” said Harry Shapiro, author of The Right Side of History, in a statement. “Now, technological innovations from beyond both the tobacco industry and public health have combined to produce safer nicotine products, and millions of people who smoked have already chosen to switch. Yet progress is being hampered. Although disruption is not always comfortable, the genie is out of the bottle—these new technologies demand the development of new policies and new thinking.”

    “A failure to recognize and exploit the potential of tobacco harm reduction will mean millions more avoidable deaths each year.”

    “A failure to recognize and exploit the potential of tobacco harm reduction will mean millions more avoidable deaths each year and contribute to an ever-growing burden of disease that disproportionately affects the most vulnerable countries and communities,” said Gerry Stimson, GSTHR project lead and emeritus professor at Imperial College London.  

    “Tobacco control’s lack of evolution, despite its very limited gains, means that many aspirational targets to achieve smoke-free status by 2030 or within the next generation are no more likely to be met than former aspirations for a drug-free world. Tobacco harm reduction offers us an historic opportunity. We must not let it slip away.”

    The Right Side of History is the third in the biennial series of GSTHR reports, following No Fire, No Smoke in 2018 and Burning Issues in 2020. The GSTHR project is produced with the help of a grant from the Foundation for a Smoke-Free World.

  • Snowplus Tech Obtains Production License in China

    Snowplus Tech Obtains Production License in China

    Snowplus has obtained a production license from China’s State Tobacco Monopoly Administration, which grants the company a quota to produce 80 million pods annually, according to a press release. The company stated that it will now takes on the “challenge and responsibility to help lead the development of a healthy and sustainable vaping industry.”

    While the U.S. government has strict regulations for vaping products, there has been a rise in fake or counterfeits of popular brands in the country, which has led to an increase in incidents relating to poorly manufactured variations, according to Snowplus. This highlights the importance of using a reputable, tested and certified vape product.

    For Snowplus Tech, a China-based e-cigarette manufacturer, equipment safety and quality are top priority. Snowplus products are designed in-house, developed by experts in specialist R&D centers, and manufactured in one of the largest, most advanced e-cigarette facilities in the world, according to the release.

    Established in Jan 2019, backed by investors such as Zhen fund and Sequoia, Snowplus has more than 60 criteria for testing, ensuring highest standards of safety and quality. With three CNAS certified research laboratories, its safety protocols are recognized and interoperable by 65 institutions in 50 countries, according to the release.

    “There is an increasing trend for cheap counterfeit vapes on the market, which we find deeply concerning,” said Derek Li, Snowplus co-founder and head of overseas markets. “That is why we have invested heavily in product research to create products that enhance the vaping experience while ensuring it is as safe as possible.” 

    Snowplus has invested over $2 million in quality and safety research and to help prevent e-liquid from leaking out of products, it conducts impact tests in variable temperature, humidity and pressure conditions, according to the release. In addition, Snowplus’ batteries pass two tests before assembly to “guarantee that devices can operate in different environments.”

  • RLX Technology Reports Revenue Down From 2021

    RLX Technology Reports Revenue Down From 2021

    RLX Technology reported net revenues of RMB1.04 billion ($146.8 million) in the third quarter of 2022, down from RMB1.68 billion in the same period of 2021. The decrease was due primarily to the suspension of store expansions and the discontinuation of older products during the transition to the new national standards, according to the Chinese vapor product manufacturer.

    Gross profit was RMB522 million for the quarter, compared with RMB656 million in the same period of 2021. Gross margin was 50  percent, compared with 39.1 percent in the prior-year period. RLX Technology attributed the improvement to a favorable change in channel mix. Because the company gradually terminated partnerships with distributors who did not obtain wholesale licenses during the transition period, its sales contribution from retail stores increased as RLX began to directly provide products to these retail stores. The company benefited also from a decrease in direct cost related to promotional activities.

    “During the third quarter of 2022, we remained dedicated to preparing for a smooth transition to the new national standards, which came into full effect on Oct. 1, 2022. Specifically, we wound down shipments of our older products and gradually switched to the National Transaction Platform on a regional basis. We have now achieved full geographical coverage nationwide,” said Ying Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.

    Third Quarter 2022 Financial Highlights

    • Net revenues were RMB1.044.4 billion ($146.8 million), compared with RMB1.676.7 billion in the same period of 2021.

    • Gross margin was 50.0%, compared with 39.1% in the same period of 2021.

    • U.S. GAAP net income was RMB505.2 million ($71.0 million), compared with RMB976.4 million in the same period of 2021.

    • Non-GAAP net income was RMB328.6 million ($46.2 million), compared with RMB452.7 million in the same period of 2021.

    “In addition to our efforts to proactively adapt to the new standards, we have focused on fulfilling our social responsibilities, which we see as one of our core competitive advantages. We recently published our annual corporate social responsibility report, summarizing our endeavors with respect to market responsibility, R&D investment, environmental protection, employee career development, and corporate governance. I am proud to share that our latest S&P CSA ESG score ranked ahead of 67 percent of our global peers, representing a powerful commendation of our commitment to sustainability and ESG best practices.”

    “We delivered net revenues of approximately RMB1 billion in the third quarter, recording a sequential decrease mainly due to the discontinuation of older products during the transition to the new national standards, as well as the second quarter’s high comparison basis mainly attributable to frontloading of sales in anticipation of the discontinuation of older products. We remain confident that our diversified portfolio will continue to satisfy adult smokers’ needs and that our sales will gradually recover,” said  Chao Lu, chief financial officer of RLX Technology.

    “Meanwhile, our continuous efforts to improve operational efficiency are proving effective, evidenced by a 30.9 percent quarter-over-quarter decrease in non-GAAP operating expenses. However, our profitability in the coming quarters will be adversely affected by the application of 36 percent consumption tax to e-cigarettes manufacturers since November 1, 2022. Cost control measures will remain at the forefront of our strategic initiatives as we navigate the evolving regulatory environment while maintaining our sustainable long-term growth.”

  • Study Claims Vapes, Marijuana Harmful to Heart

    Study Claims Vapes, Marijuana Harmful to Heart

    Researchers found evidence that e-cigarettes and marijuana have harmful effects on the heart that are similar to negative effects from traditional tobacco cigarettes, according to a new study from University of California San Francisco (UCSF).

    Health effects from vapes, marijuana joints, and cigarettes all “open the door to abnormal heart rhythms,” according to the study published Tuesday in the journal Heart Rhythm.

    “We found that cigarettes, e-cigarettes, and marijuana greatly interfere with the electrical activity, structure, and neural regulation of the heart,” lead author Dr. Huiliang Qiu, a postdoctoral scholar in the UCSF Division of Cardiology, said in a press release. “Often, any single change can lead to arrhythmia disease. Unfortunately, these adverse effects on the heart are quite comprehensive.”

    To work well, researchers explained that the heart must pump blood efficiently and with the correct timing. This vital organ is equipped with its own electrical control system thanks to our nerves, according to The Hill.

    If any part of the heart doesn’t handle those electrical signals properly, it can cause other regions of the organ to act asynchronously, meaning they will fight against each other rather than functioning as a single efficient pump.

    This can lead to arrhythmias that can be life-threatening, according to researchers.

    The study was funded by the California Tobacco-Related Disease Research Program, the American Heart Association, the U.S. Food and Drug Administration’s Center for Tobacco Products, the National Institutes of Heart, and other partners.

  • Chowdhury: Implementation of Tobacco Control Act Flawed

    Chowdhury: Implementation of Tobacco Control Act Flawed

    Azim Chowdhury

    The U.S. Food and Drug Administration’s implementation of the 2009 Tobacco Control Act, which gave the agency authority to regulate tobacco products, has been fundamentally flawed from the beginning, according to Azim Chowdhury, a partner in the Keller and Heckman law firm.

    Writing in Filter, Chowdhury explains that the premarket authorization requirements for “new” products subjects potentially reduced-harm products to nearly insurmountable hurdles while allowing preexisting products, including combustible cigarettes, to mostly escape FDA scrutiny.

    In his article, Chowdhury suggests several ways in which the FDA can more effectively implement the Tobacco Control Act.

    For example, rather than conducting reviews in a silo, the FDA should consider the totality of evidence in a premarket tobacco product application, according to Chowdhury.    

    “It is also critical that the FDA hamper the spread of counterfeit products, which may be riskier for consumers and are drowning out the small businesses and vape shops that continue to bear the brunt of FDA enforcement,” he writes.

    “Finally, the FDA should shift more resources to developing reasonable safety, quality and marketing product standards.”