Tag: news

  • May 14 PMTA Deadline Nears for Synthetic Products

    May 14 PMTA Deadline Nears for Synthetic Products

    Credit: Olly

    Time is running out for companies that want to keep their synthetic nicotine products on the market. Manufacturers of non-tobacco nicotine (NTN) products on the market as of April 14, 2022 that wish to continue to market their products are required to submit a premarket tobacco product application (PMTA) to the U.S. Food and Drug Administration by May 14, 2022.

    The May 14 deadline is only for applicants submitting electronically, as required by the FDA. Applicants can, however, request a waiver from the FDA to submit a PMTA in a different format. An application submitted in hard copy must be received by FDA no later than 4:00 p.m. EDT on Friday, May 13.

    The FDA received from the U.S. District Court of Maryland a 14-day extension to file the first premarket tobacco product application (PMTA) status reports required by the Court’s revised remedial order on April 29.

    “The extension request is supported by good cause. Compiling the information needed for the status report has required considerable time and effort, and Defendants have been working with Plaintiffs to resolve any ambiguities about which applications will be covered in the status report,” the motion states.

    The new law additionally provides that an NTN product with a tobacco-derived “previous version” that received a negative action on a PMTA from the FDA, such as a refuse to file or marketing denied order, may not continue to be marketed after May 14, 2022, without receiving a marketing granted order from FDA.

    Such products must be removed from the market, even if a new PMTA is submitted, until the marketing granted order is received, according to the agency. Products on the market after July 13, 2022 without an FDA marketing granted order are in violation of section 910 of the FD&C Act and may be subject to FDA enforcement.

    For products not on the market on April 14, 2022, a PMTA must be submitted to FDA and marketing authorization received before the product can be sold in the United States.

  • Time a Factor as Flavor Ban Bill Dies in Colorado Senate

    Time a Factor as Flavor Ban Bill Dies in Colorado Senate

    Credit: Marek Photo Design

    A bill banning flavored e-cigarettes and other tobacco products failed to make it past key Democratic state senators Tuesday.

    Members of the Senate appropriations committee voted down the bipartisan proposal, HB22-1064, on a 5-2 vote, according to Colorado Public Radio. Three Republicans were joined by Democratic state Sens. Robert Rodriguez and Rachel Zenzinger in voting no.

    The bill had been heavily lobbied and one of the session’s most high-profile and closely watched bills. But Gov. Jared Polis said he opposed it and said the issue should be handled at the local level.

    Rep. Kyle Mullica, a Democrat from Northglenn, said he hoped the measure would help prevent young people from getting hooked on flavored vaping products.

    “We’ve already seen a whole generation become addicted and (the bill) was going to do something about that and was going to make sure that we took a stand here in Colorado and that we put the health of our kids first,” said Mullica, one of four sponsors. “It’s a little disappointing not seeing it get passed.”

    Senate President Steve Fenberg signaled the demise of the bill with reporters earlier in the day. The Senate’s top Democrat said he didn’t think there was time left in the calendar given everything else lawmakers had to finish.

    On Monday, the bill was still alive and moving through the Senate. The finance committee advanced it on a 4-1 vote.

  • Sustainably Necessary for a Company’s Long Term Success

    Sustainably Necessary for a Company’s Long Term Success

    Credit: tibanna79

    Experts share their views on sustainability during the In Focus webinar.

    TR Staff Report

    Patricia Kovacevic

    Sustainability: We see and hear the word everywhere. But what does it mean for the tobacco and nicotine sectors? How are sustainable strategies meeting the needs of our businesses and stakeholders today while ensuring that future generations can also thrive?

    On May 5, a group of experts convened virtually at the In Focus webinar to explore how tobacco and nicotine are transforming to protect the future of people and the planet. Among other topics, they discussed product stewardship and leadership.

    The In Focus event series was launched in 2021 with the focus of the first event on tobacco harm reduction. The new series evolved from the prestigious Global Tobacco and Nicotine Forum and aims to explore vital themes in greater depth.

    The May 5 event featured five keynote speakers and two panel discussions and was moderated by Patricia Kovacevic, global legal and regulatory strategist and principal of RegulationStrategy.com.

    Credit: splitov27
    Pippa Bailey

    Pippa Bailey, head of climate change and sustainability practice at Ipsos U.K., a global market research and public opinion specialist, set out the concerns, perceptions and attitudes of people around the world toward climate change and sustainability. According to Ipsos, 83 percent of citizens across the globe believe that the environment is heading toward disaster. This is felt most acutely in South America where the impact of climate change has been greatest. Concerns around waste packaging and single-use plastics rank ahead of climate change, likely because this topic is very visible through dramatic images of polluted oceans and coastlines.

    Cigarette butts are the most littered product on the planet, and solving this problem will require both leadership and innovation, according to Bailey.

    Ipsos research shows that global citizens feel that they have given governments and businesses a mandate to address the environment. Sixty-two percent of citizens believe the Covid-19 pandemic was caused in part by people’s misuse of the environment

    Social and environmental concerns are becoming increasingly linked, and Bailey advised companies to avoid operating in environmental, social and governance (ESG) silos. Consumers do not think that way, she noted—so neither should companies. Instead, their approach should be more holistic.

    One challenge in achieving sustainability goals is the “say-do” gap, according to Bailey. While most citizens say that they care about the environment, their actions don’t always reflect their ambitions. Ipsos found that people tend to overestimate the impact of the actions they take. Businesses and governments, she says, need to make it easier for people to understand what more they could do to effect change.

    Behavioral change is a big part of getting consumers to recycle, according to Bailey. Citizens are not willing to pay extra to achieve that, however. They are willing to make the sustainable choice, but the financial and social benefits must be equal in their eyes.

    Erik Bloomquist

    Examining sustainability from a financial perspective, Erik Bloomquist, a global nicotine and tobacco investment consultant, noted that the main priority for investors is tobacco companies’ transition to harm reduction products that can drive returns in the future.

    In anticipation of the Foundation for a Smoke Free World’s 2022 Tobacco Transformation Index, Bloomquist presented data from 2020 to examine how much progress individual companies have made in shifting their business from combustible cigarettes to less harmful nicotine-delivery products. Product sales, capital allocation and expenditure are key criteria to assess that transformation, according to Bloomquist.

    He also presented data from the index showing how the companies’ price/earnings ratios compare with their Tobacco Transformation Index rating. Swedish Match, Philip Morris International and BAT topped the list.

    Bloomquist insisted that engagement, not exclusion, is key to progress and that investors support this.

    Adrian Payne
    Sarah Bostwick
    Liem Khe Fung
    Karen Hall
    Ronald Ngwira

    The first In Focus panel discussion, moderated by Adrian Payne, a consultant on corporate social responsibility and tobacco harm reduction, focused on leadership in a sustainable world.

    Sarah Bostwick, head of sustainability stakeholder engagement at PMI, described her company’s ambition to phase out cigarettes and build new businesses in healthcare and wellness. She said the company aims to generate substantial revenues from these segments.

    In the company’s 2019 sustainability materiality report, PMI set out how it accounts for internal developments and stays abreast of external trends. The company found that it could make the biggest difference by reducing the health impact of its products and addressing climate change. While the fist finding was expected given the health toll of smoking, the second was somewhat surprising considering that PMI’s operations have a relatively small environmental footprint.

    Bostwick also stressed PMI’s openness to stakeholders’ scrutiny and engagement.

    Ronald Ngwira, managing director of Pyxus Agriculture Malawi (PAM), detailed his company’s efforts to help meet global ESG targets. Working closely with the likes of Imperial Brands and PMI, PAM has reduced water usage by 60 percent. He said that building sustainability into the farmer base has been critical. From 2004–2010, Pyxus provided farmers with seedlings to help reverse deforestation caused in part by tobacco curing but with limited success. To make greater headway, the company decided to create its own tree plantations. Since 1991, Pyxus has planted more than 250 million trees worldwide, and in Malawi, PAM plants approximately 8 million trees each year.

    Ngwira said that Pyxus’ sustainability initiatives also cover actions to eliminate child labor and forced labor, with the company investing in education and product traceability, for example.

    Pyxus is leveraging its strong agricultural expertise to advance progress on key issues. In Malawi,  the company has not only become one of the country’s largest sustainable timber producers, but it has also invested in alternative crops, such as groundnuts, thus helping farmers diversify their income streams.

    Karen Hall, director of sustainability at Universal Leaf Tobacco Co., spoke about the challenge of growing tobacco as climate and social expectations change and are becoming more complex. In the face of global change, Universal Leaf is currently reviewing the resilience of its origins, setting ambitious but achievable goals, creating data-driven action to meet those goals efficiently and effectively, and preparing to adjust strategies as new information becomes available, she said.

    Liem Khe Fung, innovation director at cigarette paper manufacturer BMJ, pointed out that 99.9 percent of paper production relies on water and detailed his company’s plans to minimize water consumption without compromising product quality at a time when water is becoming scarce.

    Nathan Eaton

    Following the panel discussion, Nathan Eaton, executive director at NGIS, spoke about the potential of data and technology—particularly geospatial capabilities—to help address ESG challenges and commitments.

    While significant advances have been made in the fight against child labor, progress has recently slowed for the first time in 20 years. What’s more, it has been uneven across regions, sectors and age groups. Further progress will require new approaches and insights, according to Eaton

    Eaton described a collaboration with BAT to bring disparate data sources together. Showing a Google Map of southern Brazil—a major tobacco producing area—he demonstrated the ability to display variables such as distance to schools, access to safe drinking water and housing conditions—factors that may help identify at-risk communities and drive further progress in the fight against child labor.

    Juliette Le Roux Audren

    Juliette Le Roux Audren, environmental health safety product stewardship and sustainability manager for EMEA at Amphenol, argued that waste reduction requires a combination of regulation and innovation. Minerals such as tin, gold and cobalt are becoming scarcer, she noted, and the risk of scarcity is often underestimated. By redesigning and re-engineering products, the world can avoid scarcity. This will require companies to pivot from linear production cycles to circular production cycles. Le Roux Audren argued that companies need to navigate between risks and opportunities and that agile product stewardship will help them make more of their talents.

    Kevin Peng
    Jodie Clarke
    Edward Butt
    Gianmarco Guiduzzi

    The second In Focus panel, moderated by Edward Butt, group head of environment, social and government at BAT, centered on sustainable products and stewardship.

    Jodie Clarke, vice president of procurement and corporate security at Altria Client Services, explained that Altria is addressing societal and environmental concerns by engaging with all stakeholders. The company aims to create value not only for shareholders but also for society by driving responsibility through the value chain—for example, by reducing the harm to health associated with tobacco consumption; sourcing and distributing responsibly; striving for supplier diversity; supporting agricultural sustainability; promoting human rights; and ensuring ethics and compliance.

    Gianmarco Guiduzzi, head of sales and aftersales for Cerulean, detailed how Cerulean is putting sustainability at the heart of its equipment. He urged the industry to avoid working in silos and stressed that success requires the participation of people both upstream and downstream in the production process.

    For Guiduzzi, the challenge is how to replace existing raw materials for products such as cigarette filters with environmentally less harmful alternatives. For example, cellulose acetate—a critical component of cigarette filters—often ends up as litter on land and in water. Finding an alternative material with the same filtering characteristics is a challenge. Guiduzzi also challenged the industry to find an environmentally friendly replacement for polypropylene film in cigarette packs.

    One potential problem, according to Guiduzzi, is that each tobacco manufacturer is developing its own solution to these issues, and each will try to protect the associated intellectual property. While it is tempting for the larger multinationals to retain the fruits of their research and development, Guiduzzi said that, in order to create a level playing field and maximize the benefits, these solutions should trickle down to the wider sector.

    Guiduzzi also noted the rapidly growing popularity of nicotine pouches, which he said will present their own sustainability opportunities and challenges.

    Kevin Peng, advanced technology scientist at ALD Group, presented eco-friendly solutions developed by ALD, which are made from Poly (1,4-butylene succinate) (PBS), which is a biodegradable, semi-crystalline thermoplastic polyester synthesized through polycondensation of succinic acid and 1-4-butanediol, and another thermoplastic polyester, Polylactic Acid (PLA).

    Peng claimed ALD’s solution will reduce emissions as well as avoid/reduce waste. The device features a biodegradable shell and a long-life battery, and the lifecycle of the product is integrated into a holistic recycling system.

    Kate Rebernak

    Kate Rebernak, founder and CEO of FrameworkESG, urged nicotine companies to practice “radical transparency” in their operations, arguing that without such radicalism, revenues will decline, share prices will slide and investors will turn away.

    She pointed to the historical trust deficit suffered by the tobacco industry and urged companies to close the “say-do gap” by making sure that their actions match their words. As an illustration of how not to go about this, she cited U.S. companies publicly articulating their support for LGBTQ+ rights while at the same time financially supporting politicians who oppose such rights. She also gave the example of HSBC, which was recently reprimanded by the U.K. Advertising Standards Authority for advertising action against climate change while continuing to invest in fossil fuels.

    Rebernak suggested three ways for the tobacco industry to become radically transparent:

    1. Public-private engagement. She emphasized that a company cannot bring about change if it “isn’t in the room.” While acknowledging the hurdle presented by the Framework Convention for Tobacco Control’s Article 5.3, which aims to protect tobacco control policies from the commercial and other vested interests of the tobacco industry, Rebernak said the industry could attempt to overcome this hurdle by being radically transparent on its progress in tobacco harm reduction.
    2. Sharing business models, investments in R&D and marketing. The Foundation for a Smoke-Free World’s Tobacco Transformation Index, for example, calls for greater disclosure on each of the companies’ policy positions.
    3. Consumer behavior. Companies would be more successful at moving smokers away from combustibles to reduced-risk products if they were radically transparent about the risks versus the benefits. Crucially, she insisted, they should stop marketing products to children.
    Chris Greer

    The In Focus event also included a “fireside chat” on sustainability between Chris Greer, the president and CEO of Tobacco Reporter’s parent company, TMA, and Vincent Li of Hengfeng Paper, which celebrates its 70th anniversary this year. With 21 paper production lines and an annual production capacity of 230,000 tons, Hengfeng is one of China’s leading paper suppliers. For the cigarette industry, the company manufactures cigarette paper, plug wrap tipping base paper and paper for next-generation tobacco products.

    Vincent Li

    Papermaking has a considerable environmental impact due to the raw materials used (wood and water) and its energy requirements. In 2021, Hengfeng paper declared corporate carbon emissions of 3,139,297,000 tons. Following China’s national strategy to achieve peak carbon dioxide emissions by 2030 and carbon neutrality by 2060, Hengfeng aims to slash its CO2 emissions by more than a third in eight years.

    Because power generation and acquisition account for the lion’s share of Hengfeng’s global warming potential, it makes sense to focus mitigating measures there. The company plans to replace some of the coal it currently uses to generate power with energy sources that lead to less pollution. Among other initiatives, it intends to electrify parts of the papermaking process and build a 10 MW photovoltaic power station.

    Product design, too, offers opportunities to improve sustainability. By designing stiffer plug wrap papers, for example, Hengfeng enables cigarette manufacturers to use less acetate tow in their filters, thus reducing the proportion of a material that does not readily degrade in the environment.

  • Vaping Ban Could Cloud Lam’s Legacy as Hong Kong’s CEO

    Vaping Ban Could Cloud Lam’s Legacy as Hong Kong’s CEO

    Credit: Timothy S. Donahue

    Hong Kong’s chief executive, Carrie Lam Cheng Yuet-ngor’s term may mostly be remembered for her role in the ban on the import and sale of e-cigarettes and other alternatives that has just become law. The ban, first proposed seven years ago, was watered down in 2018 to the permissive regulation that applies to tobacco products.

    Opposition to the backdown from medical and education authorities prompted Lam to switch to proposing the full ban in her policy address that year, according to a story in the South China Morning Post. It took lawmakers until last October to pass legislation without exemptions and concessions of one kind or another. Evidence of the effect on consumption of e-cigarettes and the like is that the law has forced some shops selling these products to close.

    The most persuasive argument against outlawing the “new tobacco products” was that they were a not so harmful alternative that helped nicotine addicts quit smoking tobacco and perhaps stop altogether. But health minister Sophia Chan Siu-chee said many surveys that supported it were sponsored by tobacco companies.

    Essentially the argument hinges on the lack of knowledge of the long-term effects of e-cigarettes and other alternatives, especially on those who begin smoking at a young age. The smoking rate in Hong Kong has fallen to about 10 percent of people aged 15 and above. Ultimately, the prospect of a non-smoking society seems dependent on youth breaking the generational cycle of addiction by not taking up the habit in the first place.

    Lam announced in April that she would not seek reelection. Her successor is expected to be picked in May. Hong Kong media have reported this week that Chief Secretary John Lee, the city’s No. 2 leader, is likely to enter the race to succeed Lam.

  • Aspire Global Withdraws NYSE Listing Application

    Aspire Global Withdraws NYSE Listing Application

    Shenzhen-based Aspire Global has applied to U.S. regulators to withdraw its New York Stock Exchange (NYSE) listing application. The move comes as Beijing clamps down on the growth of vaping companies, mandating pre-approval for IPOs and restricting foreign investment.

    The company filed a withdrawal request to the Securities and Exchange Commission on Monday, without providing a reason for the decision in its filing, according to the South China Morning Post. It had originally planned to sell 15 million shares at $7 to $9 each, and had applied to trade on the Nasdaq exchange under the ticker “ASPG.”

    Aspire kicked off its Nasdaq listing application last June, and updated its draft prospectus in January this year. The company was expected to raise $135 million. Its withdrawal comes as recent rules introduced in China make expansion and distribution more challenging for e-cigarette manufacturers.

    Other rules introduced last month include a ban on foreign investors in a sector that once attracted venture capital giants such as Sequoia Capital and IDG. Manufacturers and retailers must also get a license before they can produce and market their products. The government banned online advertising in late 2019, and sales in shops are restricted.

    Over half of Aspire Global’s sales in 2021 were generated from Europe, with China and the U.S. accounting for 18.5 percent and 10 percent respectively, according to the company’s draft prospectus. In the U.S., Aspire has been marketing its cannabis vaping product, Ispire, since late 2020. “Our strategy is … directed at increasing our e-cigarette vaporizer technology products and developing our cannabis vaporizer technology products,” the company stated in its draft prospectus.

  • Dragbar 600S Launches, Offers a ‘More Balanced Taste’

    Dragbar 600S Launches, Offers a ‘More Balanced Taste’

    The latest in disposable vaping, the ZOVOO Dragbar 600S, was unveiled and officially entered the market on May, 9. In a press release sent to Vapor Voice, the company states that the new device is equipped with an upgraded design of five flower-shaped air inlets, which allows for a more evenly distributed airflow. This creates a more comfortable and balanced taste experience.

    “Without sacrificing user experience or changing external dimensions, it optimizes the internal space structure of the atomizing rod and enlarges the battery capacity to 500 mAh for durability. This new product delivers enormous value in addition to excellent daily experience,” according to the release.

    The first offerings of the Dragbar 600s includes 10 mouthwatering flavors, including strawberry ice, peach ice and O.M.G. In addition, 10 new flavors will be available at a future date.

    “Quality and taste are the core to impress consumers and the soul of electronic atomizers. ZOVOO always adheres to the concept of ‘user-focus’ and constantly develops new disposable vapes to meet the ultimate needs of users all over the world,” according to the release.

  • Orinda, California Passes First Reading of Flavor Ban Bill

    Orinda, California Passes First Reading of Flavor Ban Bill

    Credit: Rezona

    Another California city is considering a flavor ban for vaping products. The Orinda City Council introduced and unanimously passed the first reading of an ordinance during its meeting last week, that would ban the sale of all flavored vaping and other tobacco products within the city beginning in just a few weeks.

    The ban would prohibit the sale or any other former of distribution of flavored tobacco products, which would include products with menthol, to Patrick Lagreid of Halfwheel. There are no exemptions for premium cigars or other products.

    The ordinance will return for a second vote on May 17; if approved it will go into effect 30 days later, though there will be a 120 day grace period before enforcement begins.

  • Jamaica Set to Consider Passing Tobacco, Vaping Rules

    Jamaica Set to Consider Passing Tobacco, Vaping Rules

    Credit: Zabanski

    Jamaica is set to consider comprehensive legislation in the House of Representatives that would address the devastating effects of tobacco and e-cigarette consumption in Jamaica, Minister of Health and Wellness, Christopher Tufton said.

    The Tobacco Control 2020 Bill will, among other things, impose restrictions on the marketing of vaping and other tobacco products as well as prohibit sales to children, according to Tufton.

    Tufton said the legislation is now at the committee stage “and I am happy to report that we are well advanced in that process,” according to Caribbean National Weekly.

    “I expect over the next month, six weeks maybe, to table the comprehensive Bill, and I urge my colleagues to quickly pass this bill for the protection of the Jamaican people and to reduce the cost of treatment,” he said.

    Outlining some of the provisions of the Bill, Tufton informed that in addition to curtailing the marketing of tobacco products and prohibiting sales to children, it will also prohibit the use of electronic nicotine delivery systems such as e-cigarettes in public spaces.

    More Jamaicans are embracing vaping to help quit combustible products, according to vape shop owners on the island.

  • Connecticut Flavor Ban Bill Fails for 3rd Year in a Row

    Connecticut Flavor Ban Bill Fails for 3rd Year in a Row

    Credit: Sharaf Maksumov

    For the third year in a row, an effort to ban flavored vaping products in Connecticut couldn’t muster enough support.

    “We’re incredibly frustrated that the legislature can’t seem to get their priorities in order in a way that would protect kids, the way all of Connecticut’s neighbors already have,” said Kevin O’Flaherty, northeast advocacy director for the Campaign for Tobacco Free Kids. They “continue to support industry and industry profits instead of protecting kids.”

    The flavor ban had early momentum in the General Assembly. The Public Health Committee approved the measure in March after hearing hours of testimony, according to CT Mirror.

    Connecticut is one of few states in the region that has not adopted a prohibition on flavored e-cigarettes. New York, New Jersey and Rhode Island have barred the sale of flavored vaping products. Massachusetts banned all flavored tobacco items, including flavored cigars, cigarettes and vaping goods.

    The state has attempted a ban twice before. The proposal was raised in 2020 as part of Gov. Ned Lamont’s budget but was unsuccessful. Lamont had recommended banning flavored vaping products and increasing the tax on all e-cigarette liquids.

    Last year, a bill barring the sale of flavored cigarettes, tobacco products and e-cigarettes was watered down and then shelved. A version of the plan was also added to the state budget implementer but was scrapped.

    This year’s version only targeted the sale of flavored vaping products (not flavored cigarettes or cigars). But it still ran into opposition. E-cigarette makers, store owners and people who say that vaping is an important alternative for those who are quitting smoking testified against the bill.

  • Malaysia Vape Industry Players Want Regulations to Begin

    Malaysia Vape Industry Players Want Regulations to Begin

    Credit: Krzysztof Wiktor

    In order to avoid a total ban vaping products, some Malaysian vaping industry players are urging the government to implement long-delayed regulations for the industry.

    The Malaysia Retail Electronic Cigarette Association (MRECA) president Datuk Adzwan Ab Manas, in a statement, said a taxation framework for e-liquids with nicotine was supposed to be implemented from Jan. 1 this year, but has been delayed for four months because the Ministry of Health (MoH) still has not implemented regulations for the industry.

    The delay has not only left the industry in limbo but has resulted in the government listing more than RM750 million ($172 million) a year in tax revenue, according to the Malay Mail.

    “Furthermore, the MoH’s proposal to ban the sale of vape along with cigarettes, although the two products are different, is akin to declaring war on the local vape industry especially for the 3,000 local entrepreneurs and 15,000 employees in the industry,” Ab Manas said.

    The president of the Malaysian Vape Industry Advocacy (MIVA), Rizani Zakaria, agrees with Adzwan. Zakaria said the ban is unfair as vape and cigarettes are two very different products.

    Rizani was reported saying international studies show vaping is less harmful and can be used to help cigarette smokers quit smoking.