A group of Juul Labs investors is challenging a November 2022 financial bailout by directors Nick Pritzker and Riaz Valani, alleging that the deal benefited insiders at the expense of other investors, reports The Wall Street Journal.
A pioneer in the vaping business, Juul Labs went from dominating the U.S. market to fighting for its survival in a short time. Following its initial success, the company came under regulatory scrutiny over its marketing practices. Thousands of lawsuits alleging the company contributed to an “epidemic” of underage vaping took a toll on the company’s finances.
After the Food and Drug Administration ordered its e-cigarettes off the market and a court stayed the order, Juul began exploring bankruptcy in June 2022.
To avoid bankruptcy, Pritzker and Valani in September 2022 refinanced a Juul term loan and later that fall loaned Juul more money to cover operating costs. Finally, the two directors, along with Juul co-founders James Monsees and Adam Bowen, backstopped a sweeping legal settlement and made an equity investment in Juul.
Juul, after approaching dozens of potential investors, closed a funding round in October 2023 that raised $1.27 billion. That sum included money that entities connected to Pritzker, Valani, and Juul’s two co-founders committed for Juul’s legal settlement and an additional $45 million from the same four investors.
Entities tied to Valani and Pritzker now own nearly half of Juul, while most other investors have had their stakes sharply diluted amid the rescue.
Affiliates of hedge fund D1 Capital Partners and two other investors sued Juul in October 2023 alleging that Pritzker and Valani “leveraged a distressed situation for their own personal gain to the detriment of Juul’s other stakeholders.”
Juul in 2024 aims to raise another $330 million as it fights to keep its existing products on the U.S. market and submits new vaping products for federal authorization.
As I travel from one country to the next, everything changes: languages, currencies, foods—and also vape laws, which are so specific and seemingly random that it is challenging to keep them straight.
Before I arrived in Indonesia, I was in New Zealand and Australia—both modern, contemporary, First World countries.
New Zealand seemed comfortable with its vape laws, and shops were abundant. In Sydney and Canberra, Australia, vape shops were less common, and I had little success getting concrete feedback from shop owners and employees. There seemed to be paranoia there, and maybe there was just cause.
With Health Minister Mark Butler having proudly stated on the record that Australia’s vape laws will be the “toughest in the world,” the vape shop owners’ fears may be justified. The government is lowering the hammer on disposables, and so far, more than A$11 million ($7.3 million) of nicotine-containing vape products—11 tons—have been seized this year.
In November, Butler announced that Australia would ban all imports of disposable vapes beginning Jan. 1, 2024. The ban will be expanded in March 2024 to include all nontherapeutic vapes, including refillable devices, while importers of vapes for medical purposes will need a permit from the Office of Drug Control.
Therapeutic vapes will be restricted from using flavors, have limited nicotine levels and be sold in pharmaceutical packaging under new rules to be introduced in 2024, with a transition period for manufacturers to comply.
The legislative package will also include a total A$75 million in extra funding for the Australian Border Force and the Therapeutic Goods Administration to enforce the new rules. Additional legislation next year will apply the same prohibitions to domestic manufacturers.
When it’s all said and done, it appears that no vape products will be sold without a prescription, and instead, they will be sold at pharmacies. Say goodbye to vape shops, and say, “welcome back, black market.”
New Zealand may not be far behind.
Currently, vaping laws are reasonable in Kiwi Country, and vape shops can operate independently but with significant government oversight. Age restrictions are huge, and to that end, disposables and flavoring (including “enticing names”) will be banned in the near future.
In late 2022, the New Zealand Parliament adopted the Smokefree Environments and Regulated Products (Smoked Tobacco) Amendment Bill, which regulators said would phase out combustible tobacco product use in the country. However, in November, New Zealand’s new coalition government announced its plans to scrap the generational tobacco ban, which would have prohibited tobacco products for people born after 2009.
While ditching the generational tobacco ban, the new government vowed to get tough on vaping by banning disposable e-cigarettes and increasing penalties for illegal sales to those aged under 18.
Meanwhile, 2,000 miles to the north is another world—“a newly industrialized country with a rapidly growing economy and political stability,” per the Indonesian press.
Most shops are basic in their appearance, as is their product supply.
The government has mostly ignored the vape market, and aside from an excise tax on e-liquids, there are few regulations on physical or online shops. For a decade, the government has stated its intention to address vape products, but for now, it has settled on a tax rate of 57 percent on vape products versus 40 percent on tobacco.
In September, the Indonesian Parliament passed Health Law No. 17 of 2023, which categorizes e-cigarettes as addictive substances. Teguh Basuki A. Wibowo, chairman of the Indonesian Electronic Nicotine Industry Alliance, told the media that including e-cigarettes in the legal framework for solid and liquid tobacco products legalizes industry participants and allows smokers to find alternative products.
The law puts Indonesia on equal footing with countries like the Philippines and the U.K., which have similar legislative frameworks for e-cigarettes, Wibowo said.
With almost 65 million smokers, Indonesia trails only China and India in terms of prevalence. Tobacco is heavily advertised through television and other media, which has traditionally been one of the first targets of restrictions.
In the city of Ubud, Bali, a favorite base for expats from all over the world, I visited Nyali Vapes, and the shop’s owners confirmed the same trends I heard about elsewhere: Disposables are the largest sellers. The people at Gaya Vapes, my next stop, said likewise, and when I asked about surprise visits from regulators, counterman Genoa admitted that these visits are frequent.
He also spoke about the differences between the locals and the tourists: “Most of the tourists come in for refills and [fewer for] disposables,” he said. “They ask for their flavors, and we usually do not have their exact brand, but we do have a similar flavor, which they are fine with.”
One of the largest groups of visitors to Indonesia, and Bali in particular, are Australians, home to the world’s most expensive cigarettes, at more than $25 a pack. Over the course of my time in Bali, I asked some Aussies if they stocked up on smokes while they were visiting, and unanimously, they all said, “hell, yes!”
Even though all countries are different, some vapers’ patterns are standard, including that of Genoa, the front desk guy at Gaya Vapes, age 25, who stopped smoking in 2017 and started vaping instead. But he did confess that sometimes money is tight, in which case he goes with a cigarette instead of a vape.
Vaping is much cheaper, but liquid prices can be off-putting for consumers with Indonesian wages. Regardless, Genoa’s passion for vaping is what motivated him to work at Gaya, one of several shops in the area with that same name.
For those earning foreign salaries, life is cheap in Indonesia, a condition that also applies to tobacco and vape products. A standard pack of cigarettes costs about IDR24,000, which equates to just under $1.60. A name brand like Marlboro will set you back about $2.25 per pack, which is still a bargain for those accustomed to foreign prices. Indonesia is not the world’s cheapest country for smokers—that honor goes to Vietnam—but it is in the lowest percentile.
My new friend William at Glory Vapes confessed that he was a dual user, and because vaping was so much cheaper (even at those insanely low cigarette prices), he was able to make his disposables last up to three weeks. Add in his love for all the fruit flavors, and he remains biased toward the liquids, so he smokes cigarettes only when socializing with friends.
He also shared that local police officers regularly visit the shop, but he suspected they came in more to alleviate boredom than to look for anything illegal.
Norm Bour is the founder of VapeMentors and works with vape businesses worldwide. He can be reached at norm@VapeMentors.com.
Vapers in the Netherlands have been stocking up on products ahead of a flavor ban set to take effect in 2024, reports the NL Times, citing Emil ‘t Hart of the Esigbond Trade Association.
“You see that the consumers are hoarding as much as possible in the specialist stores,” ‘t Hart was quoted as saying. “Especially the real vapers who had switched over from cigarettes are hoarding.”
From Jan. 1, 2024, stores will not be allowed to sell vapes or fluids with flavors like peach, mango or mint. Only products with the taste of tobacco will be permitted. The government hopes its measure will prevent youngsters from starting the nicotine habit and then migrating to combustible products.
‘t Hart believes the measure will be counterproductive, however. “People who have smoked regular cigarettes before turning to e-cigarettes would then be tempted to go back to traditional cigarettes,” he said.
According to ‘t Hart many vapers have been buying their e-cigarettes online from sellers in France, Spain or China, or at physical stores in neighboring Belgium and Germany.
A legal challenge against the flavor ban, filed by the Esigbond in April, is currently making its ways through the courts. ‘t Hart expects a ruling this summer.
A new tax will hit vapers in the United Kingdom despite warnings it will punish people who have switched to e-cigarettes after quitting smoking.
The plans for the levy, which will likely increase the cost of vaping liquid by at least a quarter, will be unveiled in the Budget in March.
A government source told The Mirror it was now almost inevitable that a tax on vaping will be introduced as part of the Spring Budget, which Chancellor Jeremy Hunt will announce on March 6.
Ministers are looking to copy European countries such as Germany and Italy that already have levies on vapes.
A 10ml bottle of e-liquid, which a typical vaper would get through in a week, costs around £4 at present. In Germany, a £1.40 vape tax is slapped on 10ml bottles, with plans to double this to £2.80 in 2026.
Italy, which in 2014 became the first country to tax e-cigarette fluid, charges a £1.10 levy on 10ml bottles.
Indonesia will start imposing a tax on e-cigarettes from the start of 2024.
The additional levy is on top of the existing excise levy as the country steps up efforts to limit consumption in Southeast Asia’s largest economy.
E-cigarettes will be taxed at 10% of the prevailing excise rate, according to a finance ministry regulation, according to media reports.
In Indonesia, tobacco products are subject to two levies — at central and local government levels — of which 50% of the revenue is earmarked for public health services.
“Long term consumption of electronic cigarettes has been shown to affect people’s health,” the finance ministry said, adding the tax on e-cigarettes is also needed to level the playing field with conventional cigarettes.
A group of e-cigarette producers and customers (PAVENAS) criticized the lack of discussion and the timing of the implementation of the tax, considering excise tariffs for the product will increase next year.
The group said in a statement it may consider going to court to challenge the tax if the government goes ahead with it.
The flavor ban in the largest county in Oregon was set to go into effect on Jan. 1.
In a ruling Friday, the Oregon Court of Appeals issued a temporary stay against the policy, pending ongoing litigation.
The owner of a local vape shop said they were preparing to pull dozens of products off their shelves before getting the news.
He said flavored products make up 90% of their business, according to KATU news.
“It was going to be a trip. Like I’d have zero nicotine devices available, but again, those aren’t like a popular seller, so it was going to take some strategy to even to be able to stay in business,” said Marcus Nettles, owner of Rose City Vapers.
The governor of Michigan says she is “open” to the idea of expanding the state’s combustible tobacco taxation policy to include vaping products.
“I’m not leading with that… but if it’s something the legislature wanted to send to my desk, I’d have a conversation with them about it,” she said in a recent interview. “I’m open to it.”
The bill calls for the ban of the sales of flavored vaping and other tobacco products, defined as any product that has or is marketed as having a characterizing flavor other than tobacco.
The bill would ban the sale of products packaged in ways that “indicate, explicitly or implicitly, that the nicotine or tobacco product has characterizing flavor.”
That bill would not exempt flavored cigars, though it does carve out an exemption for flavored hookah tobacco intended for on-site consumption.
The largest county in Oregon, the 27th largest U.S. state, will ban all flavored nicotine products other than tobacco beginning January 1. Multnomah County will go into effect after surviving a court challenge.
Last week, Multnomah County Circuit Court Judge Benjamin Souede denied a request by the tobacco industry to halt enforcement of the county ordinance.
The decision paves the way for Oregon’s largest county to become the first in the state to ban flavored tobacco, according to media reports.
Earlier this year in Salem, state lawmakers considered House Bill 3090, which would have enacted a similar ban statewide. It had the support of one Republican lawmaker, Sen. Bill Hansell of Athena, and two Portland physicians, Rep. Lisa Reynolds and Sen. Elizabeth Steiner.
It passed out of the House health care committee on a party-line vote, with Democrats in favor and Republicans against, but died in the Joint Ways and Means Committee.
A former Altria executive has been promoted to CEO and resident of Kaival Brands Innovations Group, Inc. The company announced that it has expanded the role of Executive Chairman Barry Hopkins to include the additional positions.
Former CEO and president, Eric Mosser, has been appointed CEO and president of Kaival Brands International, a Kaival Brands Innovations Group’s subsidiary with an international licensing relationship with Philip Morris Products S.A., a wholly owned affiliate of Philip Morris International Inc.
Niraj Patel, founder and chief science officer of Kaival Brands, said that from the beginning he has envisioned a diverse platform that could “capture the tailwinds” generated by the company’s core offering, the BIDI Stick electronic nicotine delivery system (ENDS) product.
“Barry understands this vision, the importance of regulatory compliance and youth access prevention, and has done an exceptional job since joining Kaival Brands. He has eagerly taken on increasing levels of responsibility, leveraging his decades of experience in management in our industry,” said Patel in a press release. “His appointment as Interim CEO and president was a natural progression, and we look forward to potentially expanding our excellent management team further during 2024 with a permanent CEO and/or president as our needs dictate.
“Having Barry in this position now is particularly important since we are at a significant inflection point, as we remain hopeful that FDA will soon complete its review of the pending premarket tobacco product application (PMTA) for the tobacco-flavored BIDI Stick Classic. If we receive a marketing granted order for this product, we will have significant momentum in the new year with the ability to continue to transition adult cigarette smokers, drive revenue and grow our company.”
According to a recent U.S. Food and Drug Administration announcement, the agency’s next status report regarding its review of the still-pending PMTAs for major brands and market share leading ENDS products is due to be filed by January 22, 2024 with the U.S. District Court in Maryland.
Although FDA has not indicated publicly which PMTAs it is prioritizing for review, Kaival Brands is hopeful that the BIDI Stick Classic will be included in the January status report. The company also anticipates the PMTAs for the other 10 BIDI-branded SKUs will remain in scientific review, according to Patel.
Recently, the Kaival Brands has been encouraged by the coordinated efforts of the FDA, U.S. Customs and Border Protection, and other government agencies to increase their coordinated focus on enforcement. The company believes it has been hurt by illicit vaping products flooding the market, and it is now preparing to scale along with other legal products, assuming increased enforcement continues alongside the January announcement by the FDA.
“Hopkins will spearhead the company under the direction of the Board of Directors with a continued focus on accelerating revenue growth, improving operational efficiencies and executing Kaival Brands’ strategic growth and diversification initiatives, while remaining in compliance with applicable state and federal regulations.
“The company, alongside BIDI Vapor (the maker of the BIDI Stick), is also continuing to focus on working with Philip Morris to accelerate the international distribution of ENDS products using BIDI technology (which Philip Morris markets under the brand name ‘VEEV Now’), as part of Philip Morris’s plan to deliver a smoke-free future.”
The Flonq Max packs a lot into a small package in terms of value, vape quality and flavor choice.
By Mike Huml
The Flonq Max is one of the more unique-looking pod systems on the market today. With a rounded design, it definitely looks a bit odd at first but not in a way that would draw attention or come off as tactless. It does, however, show a level of design inspiration that isn’t often seen in the world of disposable vapes.
While the technology beneath the shell isn’t exactly innovative, the fantastic implementation of currently existing technology shines brightly in the vape quality of the Flonq Max. This disposable pod system may not break the mold in terms of innovation, but the quality and value that it offers more than make up for any contrived new features that are largely unnecessary for pod systems.
At first glance, the Flonq Max looks very different from other pod systems and disposables. While other products mostly fall into the box shape with rounded edges, the Flonq is mostly rounded with one flat edge on which to set down the device. It more closely resembles a medical device, and perhaps that is by design.
It’s slightly larger than comparable devices but very light and easy to hold. The rounded, egg-like shape makes it easier for vapers with smaller hands to palm, for those with a preference. The Flonq Max has a glossy finish, but it doesn’t seem to retain fingerprints, possibly due to it being white. Overall, the Flonq Max is a bit chunkier than comparable pod systems, but the size is warranted due to the high battery and e-liquid capacities.
The Flonq Max houses a large 650 mAh battery and contains 14 mL of e-liquid with a strength of 35 mg. For average users, this is roughly 7 days’ to 10 days’ worth of e-liquid and at least one day’s worth of battery life. Heavier users may need to charge the Flonq Max more often; however, it does feature passthrough functionality and can be used while charging.
Any USB Type-C cable can be used to charge the Flonq Max, and a full charge can be achieved in under 30 minutes. A single white LED located on the flat edge of the device illuminates when a drag is taken or when it is charging. It will also blink several times when the user attempts to take a drag with a low battery, indicating that a charge is needed. The Flonq Max is draw-activated with no buttons or menus to worry about. It is extremely simple to use, and even new users should be able to get vaping within seconds, even with no prior knowledge.
Each Flonq Max comes included with a built-in mesh coil heating element. Mesh coils are ideal for pod systems as they require lower power to produce adequate vapor, which extends battery life and ensures peak efficiency when it comes to the e-liquid. The 14 mL capacity is advertised as the equivalent of 8,000 puffs, but this is difficult to determine without an included puff counter. However, as a rough guideline, the average user can expect large-capacity devices such as the Flonq Max to last for one week before the e-liquid starts to run dry.
Aesthetically, the Flonq Max is definitely unique and stands apart from the competition without drawing too much attention or being too flashy. Technologically, the features are fairly standard for disposable devices—a hefty battery, large e-liquid capacity and a mesh coil all contribute to voluminous vapor and admirable efficiency.
In terms of vape quality, while the Flonq Max doesn’t stand head and shoulders above the competition, it is certainly up there with the best of them. There are a variety of flavors offered, and each is as clean and bold as the last. Vapor production is indeed impressive as well, but the Flonq Max isn’t unique in that regard. The one area in which the Flonq Max can claim the top prize is the draw. The airflow of this device is extremely smooth.
Airflow enters through a pinhole on the flat edge of the device, as per usual with disposable devices, but the draw has no perceptible turbulence and never causes spitback. Although the airflow is not adjustable, it’s balanced perfectly for mouth-to-lung vaping. Again, like most other pod systems and disposables, direct-to-lung vaping is technically possible but is not recommended due to the restricted airflow and high nicotine concentration.
When it comes to flavors, the Flonq Max also stands out from the crowd due to the sheer variety. Other brands do have many flavors but mostly include fruits. The Flonq Max does have fruit flavors, such as Watermelon Ice, Cherry Peach and Grape, but it breaks from the mold a bit with other flavors not generally seen in disposables such as Milk Chocolate, Strawberry Ice Cream and Yummy Bear.
Mike Huml has been vaping since 2009 and has been working in the vapor industry for more than five years. He has extensive experience in various industry segments, including purchasing, quality assurance and content creation.
There is even a flavorless option called Clear, which is rare to see. Instead of a multitude of vaguely differentiated fruit flavors, the Flonq Max truly offers options for vapers of different tastes. Each flavor is available in a strength of 35 mg, which is a good middle ground that should appeal to the majority of vapers.
Even with a relatively high nicotine strength, the throat hit is not overbearing. There is certainly a satisfying kick with each drag, but the airflow does a fantastic job of mitigating any harshness. The salt form of nicotine used in the Flonq Max and many other mouth-to-lung devices also mellows out the harshness of the nicotine very well.
The vapor production of the Flonq Max is also impressive in that a light draw will produce a nice cloud comparable to a traditional cigarette, if not more. Many lower quality vapes out there require a good amount of huffing and puffing with little payoff, but with the Flonq Max, it’s effortless.
The mesh heating element and smooth airflow are paired perfectly to produce an easy, relaxing vape experience. What’s more, the airflow is as close to silent as has been possible up to this point in time. Even with more aggressive drags, it can be difficult to hear the sound of the draw, which only adds to that “smooth” vaping experience.
A word on value: The Flonq Max can be had for $18 to $30 at a retail level, which is right around average for disposable devices. For heavy users, this can accumulate quickly but is still cheaper than smoking a pack of cigarettes per day. Most users will find that the price is reasonable for a week’s worth of hassle-free and maintenance-free vaping.
So the price may be a selling point but not one that would push a potential customer toward the Flonq Max over a similar product. However, given the price, the flavor selection has the potential to be a major selling point. Fruit flavors are a dime a dozen, and it’s becoming harder and harder to find bakery or beverage flavors.
The Flonq Max offers those flavors as well as fruit and fruit-and-menthol flavors, leaving room for users to try out not just different flavors but entirely new categories of flavors. For shop owners that also sell bottled e-liquid and refillable devices, the Flonq Max could be a great way to expose customers to a wider variety of products.
The Flonq Max doesn’t do anything particularly groundbreaking, but is doesn’t necessarily need to. What is does, it does very well, and it’s always a good idea to not overcomplicate a tried-and-true product design that appeals to a wide range of vapers. The mesh heating element produces big, flavorful clouds and keeps the power and e-liquid consumption to a minimum.
The large battery only needs to be charged once per day for most normal users and doesn’t add any unnecessary hassle. The star of the show here is really the airflow. While it’s not adjustable, it doesn’t need to be as it’s perfectly smooth and quiet as is. And again, airflow and other added features would only take away from the smooth design aesthetic and simplicity that is extremely important for disposable devices.
While the shape may take some getting used to, it should also be noted that since it can only be set down on the one flat edge, that edge does a nice job of keeping the device from tipping over. It’s a small thing, but many pod systems and disposables are on the thinner side, and that causes them to topple when a table is bumped.
When set down on the flat side, the Flonq Max is very difficult to knock over. In any case, the shape works. It’s unique and helps the Flonq Max stand apart from its peers without being offensive to the eye. And with the theme of the Flonq Max appearing to be “a smooth vaping experience,” the smooth, rounded aesthetic ties in nicely.
The Flonq Max packs a lot into a small package in terms of value, vape quality and flavor choice. It leans toward simplicity and smoothness rather than innovation and features, and there’s nothing wrong with that. The Flonq Max is a great disposable in and of itself, and that’s something that’s readily apparent to anyone who tries it. It may be just another disposable, but it’s not just another disposable.
One of the largest groups of visitors to Indonesia, and Bali in particular, are Australians, home to the world’s most expensive cigarettes, at more than $25 a pack. Over the course of my time in Bali, I asked some Aussies if they stocked up on smokes while they were visiting, and unanimously, they all said, “hell, yes!”
Each Flonq Max comes included with a built-in mesh coil heating element. Mesh coils are ideal for pod systems as they require lower power to produce adequate vapor, which extends battery life and ensures peak efficiency when it comes to the e-liquid. The 14 mL capacity is advertised as the equivalent of 8,000 puffs, but this is difficult to determine without an included puff counter. However, as a rough guideline, the average user can expect large-capacity devices such as the Flonq Max to last for one week before the e-liquid starts to run dry.
