Tag: news

Bidi Parent Inks Deal for Marketing, Sales Strategy

Kaival Brands Innovation Group, parent to Bidi Stick vaping products, today announced it has reached a three-year extension agreement with QuikfillRx, the third party vendor responsible for executing Kaival Brands’ marketing and sales strategies.
As part of the agreement, QuikfillRx will be rebranded as Kaival Marketing Services (KMS) to more properly reflect the commitment of KMS to the success of Kaival Brands, according to a press release.
“We are happy to continue our service with Kaival Brands and its commitment to responsible marketing,” Russell Quick, president of KMS, stated in the release. “Our combined efforts at preventing underage use of vaping devices and focus on the needs of legal-age smokers looking for an alternative to combustible cigarettes, stands as a model for the industry.”
In February 2022, the U.S. Court of Appeals for the Eleventh Circuit stayed a marketing denial order (MDO) issued by the U.S. Food and Drug Administration to Bidi Vapor in September 2021 for its non-tobacco flavored Bidi Stick products. The FDA had previously issued an administrative stay to Bidi Vapor, however, the agency rescinded that stay in December 2021.
Kaival Brands reported revenues of $3.8 million for the third quarter of fiscal year 2022, up from $3.2 million for the same period of 2021. Gross profit was $442,100 compared to a loss of $84,300 for comparable 2021 period.
Kaival attributed its improved revenues in part to an August court ruling that set aside a marketing denial order issued by the U.S. Food and Drug Administration to the company’s nontobacco flavored Bidi Stick e-cigarettes.
The three-year extension with KMS was executed in preparation to support the anticipated improved sales volumes arising from this decision and the increase of Bidi Stick sales and marketing activities.
In addition to monthly cash payments, which will be lower than during the initial term of the agreement, and a one-time upfront vested common stock option award, KMS will be eligible to receive performance-based common stock option awards from Kaival Brands.
Eric Mosser, president and chief operating officer of Kaival Brands, stated that KMS has been an integral part of the Kaival story since its inception.
“Their industry knowledge and expertise, experience working with our team, and unmatched around-the-clock service is best in class,” he said. “As part of ongoing corporate efforts in anticipation of increasing sales activity following Bidi Vapor’s merits case win, it became clear that reaffirming our relationship with KMS was an important step to manage growth.”
November 15, 2022
Ireland Considering Vape Ban for Under-18 Youth

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The sale of e-cigarettes and vaping products to under-18s is set to be banned in Ireland.
Health Minister Stephen Donnelly is to seek Cabinet approval to ban the sale of “nicotine inhaling products” to those aged under 18 from early in the new year, according to Irish media.
Legislation is at an advanced stage and the minister will seek Cabinet approval to introduce a ban on the sale of vaping products to under-18s early next year.
Ireland has the highest rate of people who use e-cigarettes in the European Union at 7 percent, while the EU average is 2 percent.
Donnelly will also restrict the types of retailers that can sell vaping products, reducing the number of vape shops.
He also intends to curb the advertising of nicotine-inhaling products near schools. This will also apply to a number of other settings frequented by children and young teenagers.
A ban on advertisements for vaping instruments and CBD oils will also apply on public transport.
The intention is to limit children’s exposure to commercial messages “normalizing or glamourizing” the purchase and use of e-cigarettes, a source said.
November 15, 2022
BAT Invests Nearly £50 Million in Charlotte’s Web

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BAT is investing £48.2 million ($57.4 million) in Charlotte’s Web Holdings. Based in Colorado, USA, and listed on the Toronto Stock Exchange, Charlotte’s Web offers cannabinoid extract wellness products.
“The appeal of Charlotte’s Web is clear to us: a wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust B2C e-commerce platform serving a loyal U.S. consumer base, and a track record of in-depth scientific research,” said BAT Chief Growth Officer Kingsley Wheaton in a statement. “Our investment in Charlotte’s Web represents another step for BAT in our exploration beyond tobacco and nicotine,” Wheaton said.
Last month, Charlotte’s Web became the first CBD company allowed to use the moniker “Official CBD of MLB.” Major League Baseball (MLB) said in June that it would allow teams to enter sponsorships with CBD marketers.
Describing its relationship with MLB as a “multiyear, strategic partnership,” Charlotte’s Web issued 6,119,121 shares of its common stock to the sports organization—worth an estimated $4.4 million at the time.
“This investment will provide Charlotte’s Web with funding that we anticipate will help unlock deeper and broader research and development that is key to our continued innovation, global footprint and the advancement of our intellectual property portfolio,” said Jacques Tortoroli, CEO of Charlotte’s Web.
November 15, 2022
Vaping Prohibited at World Cup 2022 in Qatar

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The FIFA World Cup 2022 begins Nov. 20 in Qatar. Vapers attending the event should be aware of heavy fines for anyone caught vaping inside any venue.
The strengthened regulation to make venues safe for fans is part of a unique collaboration between FIFA, WHO and the Ministry of Public Health, Qatar, designed to harness the power of football to protect and promote health for all.
This, in turn, will create a blueprint for protecting and promoting health at mass gatherings which can then be shared with other sports organizations., according to the WHO.
“Each of the three partners have long promoted effective tobacco control measures, while also raising awareness around tobacco health hazards,” according to Rayana Bou Haka, a WHO representative to Qatar. “They have also backed the implementation of a tobacco-free policy at FIFA sporting events. Still, evidence shows that successful tobacco-free mega sporting events depend on effective communication and enforcement of policies.”
Vapers will have to leave their e-cigarettes at home for the tournament, as it’s illegal to import, sell or purchase them. Anyone caught with one could be fined up to Riyals10,000 ($2,747) or three months in prison.
Riot Labs CEO Ben Johnson said his company will fines for any vapers caught vaping in Qatar.
“Obviously attending a major football tournament is an incredible life experience for fans but treating Qatar like the beer garden at the local British boozer could land fans in hot water – even for just vaping,” he said. “”Socializing, alcohol, partying, sex – traditionally some of football fans’ favorite escapades – are all examples of major triggers for smoking tobacco and we hope our fines repayment scheme encourages fans to stick to e-cigarettes.”
Adult consumers might not be able to take their vape with them, but they can take nicotine pouches. Pouches are legal in the country.
Qatar will be assigning a team of 80 tobacco inspectors to support FIFA volunteers and security staff in enforcing the FIFA Event Policy on Tobacco during the FIFA World Cup, which runs from Nov. 21 (Nov. 20 EST) to Dec. 18.
“Qatar has been a frontrunner in tobacco control in the region,” said Kholoud Ateeq K M Al-Motawaa, head of noncommunicable disease for Qatar’s Ministry of Public Health. “For the FIFA World Cup, tobacco control measures have been developed for inside and outside stadiums, especially in public places, while tobacco-free environments in fan zones will be rigorously enforced where supporters without tickets can watch games on large screens surrounded by smoke-free air.”
November 15, 2022
Korea Cracks Down on E-Cigarette Tax Evaders
A plan to strengthen the crackdown on people evading taxes on imports of tobacco-derived e-cigarette products by claiming the nicotine is synthetic, according to South Korea’s customs agency.
The Korea Customs Service said it had developed a high-precision analysis method to identify whether the nicotine contained in an e-liquid is extracted from natural tobacco or created in a lab.
This method uses a sample preparation technology called derivatization to increase the detection sensitivity of a specific ingredient contained in tobacco leaves by a factor of 30, according to The Korea Biz Wire.
E-liquids in South Korea that use natural nicotine are classified as cigarettes under tax laws, and are therefore being levied an inland duty of 1,799 won ($1.32) per 1 milliliter.
Synthetic nicotine-based e-liquids, however, that are produced with chemical materials are not classified as tobacco cigarettes but as manufactured goods, and are therefore exempt from cigarette consumption taxes.
Accordingly, there are some cases where e-cigarettes using tobacco-derived nicotine are falsely being reported as synthetic nicotine e-cigarettes to avoid taxes.
November 14, 2022
CDC: Teen Tobacco use Down Over 50% From 2019

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The numbers are in and teen tobacco use is dropping. According to government data released last week, an estimated 3.08 million U.S. middle and high school students reported using a tobacco product in the last 30 days in 2022. That figure is down from 4.47 million in 2020 and 6.20 million in 2019.
E-cigarettes were the most commonly used tobacco product among teens for the ninth consecutive year, according to the study published in the U.S. Centers for Disease Control and Prevention (CDC) Morbidity and Mortality Weekly Report.
The survey found cigars to be second most popular with 500,000 reporting use, followed by 440,000 cigarette smokers.
Nearly 31 percent of the students surveyed reported using multiple products, which the CDC called “particularly concerning” as that has been linked to nicotine dependence and sustained use in adulthood, according to Reuters.
Cigarette smoking among U.S. youths has been steadily declining in the last two decades, although the CDC cautioned against comparing the results to previous years due to a change in the method of data collection related to the COVID-19 pandemic.
The study was based on an annual national survey that took place from January to May this year, which showed that nearly 11.3 percent of all students had used a tobacco product in the last 30 days.
November 14, 2022
Elfbar Brings Back the ‘Cigalike’ Disposable Vape
The classic cigalike vape stick is back. Elfbar launched its version of the iconic vape device last month in the UK after it was approved by the sovereign state’s Medicines Healthcare Products Regulatory Agency (MHRA).
The Elfbar Cigalike provides vapers with an estimated 400 puffs, and is designed for heavy smokers looking to quit combustible cigarettes.
“According to the NHS, vaping is one of the best ways to quit smoking,” Victor Xiao, chief executive of Elfbar, said. “Brands and the retail sector have an important role to play in getting this message out there to adult smokers by working closer together.”
A cigalike pen more closely replicates the feel and look of a traditional cigarette. The devices fell out of favor as pod-style devices took over the market during the past few years, according to Better Retailing.
The disposable Elfbar Cigalike pen features a compact design with a diameter of 9mm.
The product also includes an upgraded coil, and is described as a “modern version of the original cigalike vapes with more power, longer lasting battery, and improved taste due to the nic salts and better coils,” according to Better Retailing. The range comes in 20 flavor varieties.
November 14, 2022
Judge Denies LG Chem Exploding Battery Lawsuit

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LG Chem has defeated a lawsuit in Ohio over an exploding e-cigarette battery after a federal judge ruled he has no jurisdiction to oversee the case, reports Law360.
Paul Straight sued the South Korean chemicals company after an e-cigarette purchased at a Vapor Station store in Ohio exploded and burned through his jeans and left thigh. He sustained second and third-degree burns to his thighs and left wrist and now limps as a result of his injuries, according to his lawsuit.
LG Chem maintained it did not authorize Vapor Station to sell single batteries. Rather, they were meant to be used in battery packs for power tools and other products. The company also argued it did not make, sell or distribute the batteries in Ohio.
The judge did not buy Straight’s assertion that the company’s other business in the state was enough for the judge to exercise specific jurisdiction.
“LG Chem in fact has established that it neither earned revenue from the sale or distribution of 18650 cells in Ohio nor advertised or solicited business in Ohio with respect to 18650 cells,” Judge James L. Graham of the Southern District of Ohio wrote.
The case is Paul Straight v. LG Chem Ltd. et al., case number 2:20-cv-06551.
November 12, 2022
Companies File Suit Against California Flavor Ban

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Vapor and other tobacco companies filed a lawsuit against California in federal court over the state’s ban on flavored products one day after voters backed the ban in a Nov. 8 referendum, reports the Courthouse News Service.
Though more than half the state’s ballots have yet to be counted, media outlets have declared that the referendum will pass. Unless a judge agrees to intervene, the ban is set to go into effect no later than Dec. 21, 2022.
In their suit, the companies argue that the Family Smoking Prevention and Tobacco Control Act (TCA) of 2009 allows states and municipalities to regulate tobacco products, but not to ban their use or sale.
“The ban falls under the TCA’s express preemption clause, ‘which preempts ‘any [state] requirement’ that is ‘different from, or in addition to,’ a federal requirement about a tobacco product standard,” the suit reads. “A flavor ban is a paradigmatic tobacco product standard.”
In 2020, California lawmakers passed a ban on all flavored nicotine products except hookah, loose leaf tobacco (for pipes) and premium cigars. Menthol products are also covered by the legislation.
Opponents of the ban collected more than 1 million signatures and forced the state to hold a referendum on the ban. Originally scheduled to take effect Jan. 1, 2021, the legislation was then suspended until the Nov. 8 vote.
Vapor and tobacco companies already sued California over the flavor ban in 2021. But a federal judge dismissed the case, telling the plaintiffs to wait for the voters to weigh in before suing.
November 11, 2022
Juul Labs Secures Funding, Plans to Lay Off 400 Staff

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Juul Labs Inc. said on Thursday that the company had secured an investment from some of its early investors that will keep the e-cigarette maker from filing bankruptcy.
The company will also undertake job cuts as part of a reorganization, according to Reuters.
Juul Labs also announced that it will lay off about 400 people and reduce its operating budget by 30 percent to 40 percent.
The company said the investment would help Juul run its business operations, while it goes ahead with its administrative appeal of the U.S. Food and Drug Administration’s marketing denial order related to Juul its e-cigarettes.
Juul Labs did not disclose the size of the investments.
November 10, 2022