Tag: news

  • Bangladesh Mulls Ban on E-Cigarettes and Pouches

    Bangladesh Mulls Ban on E-Cigarettes and Pouches

    Photo: sezerozger

    Bangladesh’ Ministry of Health and Family Welfare wants to amend the country’s tobacco act to ban e-cigarettes and oral nicotine pouches, reports The Business Standard. The proposal also includes new restrictions on combustible tobacco products.

    Health activists have been calling for prohibition of e-cigarettes, which are not mentioned in the current legislation. The proposal would prohibit not only the consumption of vapor products, but also the production, import, export, storage, sale and transportation of e-cigarettes or their parts.

    People caught vaping would face maximum fine of BDT5,000 ($53.80) under the plan, while producers and traders would risk imprisonment for a maximum of six months or a fine not exceeding BDT200,000 or both for the first time. The punishment would double each time the offence is repeated.

    E-cigarettes started arriving informally in Bangladesh a few years ago and quickly became popular. As demand increased, British American Tobacco started producing and selling e-cigarettes in the market. Japan Tobacco is also reportedly preparing to market e-cigarettes in Bangladesh.

    The health ministry’s proposal would also tighten restrictions on traditional tobacco products. Among other provisions, it includes a ban on flavors and an increase in the size of graphic health warnings to 90 percent of the packaging’s surface from the 50 percent required under current legislation. The draft also foresees new retail licensing requirements and limitation on where tobacco can be sold.

    The health ministry has recently sent copies of the draft to stakeholders. The Directorate General of Health Services is accepting opinions on the draft until July 14.

  • Poda Completes Asset Sale to Altria Client Services

    Poda Completes Asset Sale to Altria Client Services

    Photo: Poda Holdings

    Poda Holdings has completed the sale of substantially all of the assets and properties used in the company’s business to Altria Client Services for a total purchase price of $100.5 million, subject to certain adjustments and holdbacks, pursuant to a definitive agreement dated May 13, 2022.

    Pursuant to the Asset Purchase Agreement, Poda will change its name to Idle Lifestyle and its trading symbol to IDLE.X. The company expects to trade as an inactive issuer under the policies of the Canadian Stock Exchange.

    “The completion of this sale represents the culmination of a tremendous amount of effort from the entire Poda team, and I am extremely proud of what we have accomplished,” said Poda Director, CEO and Chairman Ryan Selby in a statement.

    I believe this transaction provides maximum value for the company and its shareholders, and I know our innovative technology is now in good hands with Altria.”

  • Motley Fool: Juul Removal Would Crown BAT King

    Motley Fool: Juul Removal Would Crown BAT King

    Photo: BAT

    The removal of Juul products would hand the U.S. market to BAT (formerly British American Tobacco), according to Motley Fool.

    Juul, which is partly owned by Altria Group, had been the undisputed e-cigarette leader, with a near-80 percent share of the market at the height of its success. The latest Nielsen data puts Vuse’s share at 35.1 percent compared to 33.1 percent for Juul. Third-place NJOY has a 3.1 percent share.

    Last year, the U.S. International Trade Commission ruled that Philip Morris International’s IQOS heated tobacco device infringed on BAT’s patents, and that device was prohibited from being imported and sold in the U.S. Altria had partnered with PMI to market and distribute IQOS in the U.S., but the ITC ruling disrupted those plans.

    Because Altria shelved its MarkTen e-cigarette brand in  favor of partnering with PMI, the ITC ruling leaves it without a vapor product. The FDA has all but wiped out the rest of its investment in Juul. In 2018, Altria paid $12.8 billion for a 35 percent in the vapor company. As of the end of the first quarter of 2022, Altria had reduced the fair value of its Juul position to just $1.6 billion.

    If the FDA is successful in eliminating Juul, BAT will essentially have no roadblocks in its way to market dominance.

    Vuse turned profitable in the U.S. for BAT in the second half of last year, and it’s been able to grow its share because it discounted the device and the consumables to attract users. Earlier this month, BAT said it was now ready to raise prices on both. With a major competitor removed from the market, this should provide the company with a big boost in profits.

    BAT’s vapor revenue grew 59 percent last year to £927 million ($1.14 billion), while its own heated tobacco products, marketed under the Glo brand, saw a 46 percent rise in sales to £853 million.

  • Licensing Agreement Brings Leadership Changes at Kaival

    Licensing Agreement Brings Leadership Changes at Kaival

    Photo: adragan

    Kaival Brands Innovations Group Founder and CEO Nirajkumar Patel will transition to chief science and regulatory officer. Eric Mosser, the company’s current chief operating officer, will become president and remain COO. Mosser will serve as the company’s principal executive officer for purposes of its filings with the Securities and Exchange Commission. Patel will remain on the board of directors for Kaival Brands.

    The management changes follow the company’s recently announced international licensing agreement with Philip Morris Products (PMP) on June 13, 2022.

    The agreement grants to PMP a license of certain intellectual property rights relating to Bidi Vapor’s premium electronic nicotine delivery system (END”) device, the Bidi Stick, in the U.S., as well as potentially newly developed devices, to permit PMP to manufacture, promote, sell and distribute such ENDS device and newly developed devices, in markets outside of the U.S.

    “What Mr. Patel has accomplished, from initial concept to an international distribution agreement with Philip Morris is extraordinary,” said Mosser in a statement. “With unwavering belief and integrity, he established himself as a true visionary within the vaping category.

    Mr. Patel has been both inventor and salesman, developing a product and everything that goes around it to make it successful. We have grown from a no-name brand to the No. 1-selling self-contained disposable ENDS device in the U.S based on the Nielsen retail sales data for the 52-week period ending June 4, 2022, according to a recent Goldman Sachs’ Equity Research Report.”

    The transition will allow Patel to focus on developing new products and expanding the Bidi Vapor product portfolio, which is directly related to the new agreement with PMP, and allow Mosser to focus on expanding sales distribution channels and increasing the revenues and profits of Kaival Brand.

    “My passion for the business is in creating, designing and delivering new products for adult tobacco users to the market,” said Patel. “Mr. Mosser understands the core values, mission and goals of the Company, and I am confident he will take Kaival Brands to new levels.”

    The management changes are effective immediately, with roles and responsibilities to transfer over the coming weeks.

  • San Jose, California Flavor Ban Begins on July 1

    San Jose, California Flavor Ban Begins on July 1

    Credit: Andriano_cz

    The San José City Council’s unanimous action last fall to ban flavored vaping and other tobacco product sales will soon take effect. Starting July 1, 2022, the sale of flavored tobacco within the City of San José, California is prohibited, as outlined in the city’s Tobacco Retail Ordinance.

    “The ban applies to any tobacco products with an artificial flavor, natural flavor, aroma, herb or spice, including — but not limited to — cherry, chocolate, cinnamon, clove, cocoa, coconut, coffee, grape, licorice, menthol, mint, orange, pineapple, strawberry, vanilla, and other flavors,” according to press release. “This includes products where such flavors characterize the smoke or vapor produced by the tobacco product.”

    Certain products are exempted from the ban, including shisha, hookah, and premium cigars.

    The City’s Code Enforcement Division, which oversees tobacco retailers in San José, will enforce the ban. Sellers of the banned products, after June 30, 2022, could be fined up to $2,500 per day and/or have their tobacco license revoked.

    “The tobacco industry has targeted youth with these colorful, flavored tobacco products, leading to an alarming rise in tobacco use among youth. We are proud to put the health of our youth first with these prohibitions,” said Mayor Sam Liccardo.

    “Studies show that more than 80 percent of minors and young adults report that flavored tobacco was their first use of a tobacco product,” said Chris Burton, director of the Planning, Building and Code Enforcement Department. “This ordinance update to ban the sale of flavored tobacco and other steps can greatly help minimize access to tobacco by youth.”

    The City Council’s action and ordinance update in Fall 2021 included the steps of prohibiting the location of new tobacco retailers locating within 1,000 feet of facilities that serve youth and within 500 feet of an existing tobacco retailer. That requirement went into effect on November 18, 2021.

    The Code Enforcement Division facilitated the Tobacco Retail Ordinance update with a grant from the County of Santa Clara, which is coordinating with cities throughout the county on flavored tobacco prohibitions.

    San José and other cities proceeded with local bans after California Senate Bill 793, which banned the sale of flavored tobacco statewide in 2020, was placed on hold for a voter referendum in November 2022 that could potentially repeal the measure.

    The American Nonsmokers’ Rights Foundation reports that as of April 1, 2022, 235 municipalities (predominantly in California) have banned or restricted the sale of flavored tobacco.

    trilingual brochure produced by the Code Enforcement Division explains the ban and other rules for tobacco retailers in English, Spanish and Vietnamese.

  • USPS Gives Greenlane Holdings PACT Act Exemption

    USPS Gives Greenlane Holdings PACT Act Exemption

    Credit: Lost in Midwest

    Greenlane Holdings, one of the largest sellers of premium cannabis accessories, announced that it has begun shipping previously restricted vaping products to its wholesale clients under a business and regulatory exemption to the Prevent All Cigarette Trafficking (PACT) Act. The exemption was issued the United States Postal Service (USPS).

    The U.S. Congress banned all electronic nicotine delivery system (ENDS) products from being mailed by the USPS in 2020. The rule change was lumped into the Covid-19/ omnibus budget bill passed. 

    After receiving the regulatory exemption in January 2022, Greenlane has successfully implemented the controls, processes, and systems required to begin utilizing the USPS and offering it to customers at full capacity, according to a press release. The ability to fulfill ENDS products with the USPS will allow the Company to reduce shipping costs, decrease fulfillment times, and enhance the overall customer experience for approved wholesale customers.

    “We are excited to, once again, offer a high quality and cost-effective fulfillment solution to our wholesale clients for our entire suite of products,” said Nick Kovacevich, CEO of Greenlane. “We continue to focus on strengthening our position as industry leaders in compliance and safety. This major step further differentiates us in the market and demonstrates our Company’s strength in adapting to the ever-changing regulatory landscape.”

    The implementation of this new fulfillment offering through the USPS will also enable Greenlane to partner with businesses that ship regulated ENDS products and need a cost-effective logistics solution.

    “We believe this new shipping capability positions us well to accelerate our growth in the vaporizer space, and to take advantage of new revenue opportunities through offering our compliant logistics capabilities to other businesses that have been impacted by the PACT Act,” said Kovacevich.

  • U.S. Appeals Court Delays FDA’s Ban on Juul

    U.S. Appeals Court Delays FDA’s Ban on Juul

    Credit: Tanasin

    A federal appeals court today granted Juul Labs Inc. a temporary stay of the U.S. Food and Drug Administration’s order for the vaping company to pull its e-cigarettes off the U.S. market.

    “The purpose of this administrative stay is to give the court sufficient opportunity to consider petitioner’s forthcoming emergency motion for stay pending court review and should not be construed in any way as a ruling on the merits of that motion,” the court wrote.

    The e-cigarette maker had earlier asked the court to pause what it calls an “extraordinary and unlawful action by the regulatory agency that would require it to immediately halt its business.

    The company filed an emergency motion with the U.S. Court of Appeals in Washington as it prepares to appeal the FDA´s decision.

    Juul said that the FDA cannot argue that there was a “critical and urgent public interest” in immediately removing its products from the market when the agency allowed them to be sold during its review.

    The company noted that the FDA denied its application while authorizing those submitted by competitors with similar products.

    The order sets a briefing schedule of June 27 for the petitioner’s emergency motion; July 7 for the respondent’s response, and July 12 for the reply.

    The request for an emergency stay while waiting to file an appeal was expected.

    “We respectfully disagree with the FDA’s findings … intend to seek a stay and are exploring all of our options under the FDA’s regulations and the law, including appealing the decision and engaging with our regulator,” said Joe Murillo, chief regulatory officer at Juul Labs, said in a statement. “We remain committed to doing all in our power to continue serving the millions of American adult smokers who have successfully used our products to transition away from combustible cigarettes, which remain available on market shelves nationwide.”

    The marketing denial order, which concerns the FDA’s analysis of Juul products has not been released to the public. “Any portion of the record that was placed under seal . . . before an agency remains under seal in this court unless otherwise ordered,” the emergency motion states.

  • Geek Bar Develops ‘Supply Chain Charter’ to Combat Fakes

    Geek Bar Develops ‘Supply Chain Charter’ to Combat Fakes

    Geek Bar launched its new “supply chain charter’ as part of a crackdown on “rising levels of malpractice across the distribution and retail of disposable vape products.”

    The charter covers “every aspect of the supply chain,” the company said, from product sourcing to sale of devices to customers. The company has been working to crack down on “the challenge of illicit disposable vape products finding their way into the country” it said.

    Late last year, over-strength Geek Bar products were found to be openly sold online in an investigation by the UK Vaping Industry Association (UKVIA). In the UK, regulations state that disposable vapes should contain no more than 20mg/ml of nicotine nor have above 2ml liquid capacity.

    Geek Bar Pros, manufactured for markets where regulations are different and allow higher nicotine concentrations, have been amongst the non-compliant products finding their way into the UK market, according to The Grocer.

    The brand has also been involved in closing 12 counterfeit factories in China which had manufactured more than 100,000 counterfeit Geek Bars destined for the UK.

    “We have been working tirelessly over the last six months to review our business operations to ensure that no stone has been left unturned and ensure adult smokers continue to enjoy the highest quality and safest vaping experience when using our products,” said Allen Yang, CEO at Geek Bar.

    “We will not tolerate malpractice amongst distributors and retailers who want to supply and sell our products but do not do it legitimately. Through the development of the charter we are upping the ante even more to ensure rogue traders do not succeed in our marketplace,” he added.

    The charter commits the company and its supply chain partners to various measures, including more stringent batch control, clearer distribution contracts, product authenticity checks for retailers and consumers, tamper-proof packaging and faster product recall procedures.

    “The charter is designed to set the bar very high when it comes to disposable vape standards in the supply chain. These standards have been under scrutiny in recent months as the category has attracted significant interest and demand,” Yang said.

    The sector has been making efforts to curb non-regulation and counterfeit products finding their way onto the UK market, as well as tackling underage sales.

  • It’s Official: FDA Denies Juul U.S. Market Access

    It’s Official: FDA Denies Juul U.S. Market Access

    Today, the U.S. Food and Drug Administration confirmed what many had already been anticipating: Juul Labs must remove all currently marketed Juul products from the U.S. market.

    “Today’s action is further progress on the FDA’s commitment to ensuring that all e-cigarette and electronic nicotine delivery system products currently being marketed to consumers meet our public health standards,” said FDA Commissioner Robert M. Califf. “The agency has dedicated significant resources to review products from the companies that account for most of the U.S. market. We recognize these make up a significant part of the available products and many have played a disproportionate role in the rise in youth vaping.”

    These marketing denial orders (MDO) pertain only to the commercial distribution, importation and retail sales of these products, and do not restrict individual consumer possession or use—the FDA cannot and will not enforce against individual consumer possession or use of Juul products or any other tobacco products.

    “We respectfully disagree with the FDA’s findings … intend to seek a stay and are exploring all of our options under the FDA’s regulations and the law, including appealing the decision and engaging with our regulator,” said Joe Murillo, chief regulatory officer at Juul Labs, said in a statement. “We remain committed to doing all in our power to continue serving the millions of American adult smokers who have successfully used our products to transition away from combustible cigarettes, which remain available on market shelves nationwide.”

    After reviewing the company’s premarket tobacco product applications, the FDA determined that the applications lacked sufficient evidence regarding the toxicological profile of the products to demonstrate that marketing of the products would be appropriate for the protection of the public health.

    In particular, some of the company’s study findings raised concerns due to insufficient and conflicting data—including regarding genotoxicity and potentially harmful chemicals leaching from the company’s proprietary e-liquid pods—that have not been adequately addressed and precluded the FDA from completing a full toxicological risk assessment of the products named in the company’s applications.

    Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, called the FDA decision “the most significant action the FDA has taken to reverse the youth e-cigarette epidemic. Juul, more than any other product or company, has been responsible for creating and fueling the youth e-cigarette epidemic.”

    The FDA says that, to date, it has not received clinical information to suggest an immediate hazard associated with the use of the Juul device or Juul pods. However, the MDOs issued today reflect FDA’s determination that there is insufficient evidence to assess the potential toxicological risks of using the Juul products.

    “There is also no way to know the potential harms from using other authorized or unauthorized third-party e-liquid pods with the Juul device or using Juul pods with a non-Juul device,” the agency wrote in a statement.

    “The FDA is tasked with ensuring that tobacco products sold in this country meet the standard set by the law, but the responsibility to demonstrate that a product meets those standards ultimately falls on the shoulders of the company,” said Michele Mital, acting director of the FDA’s Center for Tobacco Products. “As with all manufacturers, Juul had the opportunity to provide evidence demonstrating that the marketing of their products meets these standards. However, the company did not provide that evidence and instead left us with significant questions. Without the data needed to determine relevant health risks, the FDA is issuing these marketing denial orders.”

    Gregory Conley, president of the American Vaping Association, asserted on Twitter that the Juul decisions were “manufactured” and “complete nonsense.”

    Andrew Bagley is the owner of the Illuminati Smoke Shop in Columbia, South Carolina, and says even with the popularity of Juul, he doesn’t have concerns about the ban’s effect on sales, reports News19.

    “I’m not concerned,” he said. “We have quite a few other vape products that are PMTA approved, which just means at this point we are legally allowed to sell them and Juuls were a very small percent of our sales, it’s not that big of a deal.”

  • Feelm Commits to Carbon Disclosure Project

    Feelm Commits to Carbon Disclosure Project

    Photo: Feelm

    Feelm has joined the Carbon Disclosure Project (CDP), as part of the listing of its parent company, Smoore.

    CDP is an independent not-for-profit organization that manages a global disclosure system and repository for environmental reporting by corporations, municipalities and organizations around the world.

    In 2021, more than 680 financial institutions, representing $130 trillion in assets, supported CDP’s request for data sharing, while over 13,000 companies, accounting for 64 percent of the world’s market capital, disclosed through CDP’s database. Phillip Morris International, British American Tobacco, Japan Tobacco International, Altria Group and Imperial Tobacco also take part in the CDP.

    In May 2022, Feelm announced its commitment to achieve carbon neutrality by 2050, with a strategic executive plan that includes introducing zero-carbon vape technology solutions, adopting eco-friendly materials and green packaging, supporting the global supply chain in de-carbonization and activating a recycling program of vape pod cartridges and devices with clients.

    “Carbon neutrality is an important component of our integrated ESG strategic plan as it helps to accelerate our business transformation, said Sofia Luo, marketing director of Feelm’s business division, in a statement.

    “That is why Feelm follows the measures and roadmap outlined in the ‘Corporate Net-zero Pathway’ published by the UN in 2021. Feelm will press ahead with its commitment to comply with UN standards, disclose information transparently, and welcome scrutiny from international organizations and the public; in order to reach our vision of developing an eco-friendly and low-carbon economy.”