Tag: news

  • Florida: 25 Cities now Ban Vaping in Public Parks

    Florida: 25 Cities now Ban Vaping in Public Parks

    Credit: Ryan Tishkin

    Winter Park became the 25th Florida city to ban smoking and vaping in public parks, beaches and leisure areas. However, in Winter Park, premium cigars are not prohibited.

    The ordinance, which passed its first reading at the Nov. 8 city meeting, follows the revision of Florida statute 386.209, according to media reports.

    The statute originally placed smoking regulations in the hands of the state legislature but in 2022, at the request of several cities including Winter Park, the statute was changed to allow local enforcement of smoking restrictions in parks, beaches, and other outdoor leisure areas.

    The specific areas affected by the ban are parks and outdoor venues owned or operated by the city. The state’s revision of statute 386.209 includes the following:

    Counties and municipalities may further restrict smoking within the boundaries of any public beaches and public parks that they own, except that they may not further restrict the smoking of unfiltered cigars. A municipality may further restrict smoking within the boundaries of public beaches and public parks that are within its jurisdiction but are owned by the county, unless such restriction conflicts with a county ordinance, except that they may not further restrict the smoking of unfiltered cigars.

    A representative from the City of Winter Park told local media that “as it relates to cigars, we are following the language from the state statute.” Questions directed to the state regarding the statute have not yet been answered.

  • FDA Increases Civil Monetary Penalties for Retailers

    FDA Increases Civil Monetary Penalties for Retailers

    The U.S. Food & Drug Administration (FDA) announced that it has increased the penalties that nicotine companies and retailers pay if found in violation of the various federal laws regarding nicotine products.

    The changes are part of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which requires the penalties to adjust with inflation.

    The updated penalties are:

    • First Violation — $0 (Warning Letter)
    • 2 within a 12-month period — $345 (Previously $320)
    • 3 within a 24-month period — $687 (Previously $638)
    • 4 within a 24-month period — $2,757 (Previously $2,559)
    • 5 within a 36-month period — $6,892 (Previously $6,397)
    • 6 within a 48-month period — $13,785 (Previously $12,794)

    The civil monetary penalties are handed out to vaping and other tobacco companies or retailers that are found to violate FDA’s rules regarding vaping and other tobacco products.

    Examples could range from an e-cigarette company failing to use a proper warning label to a retailer caught selling any nicotine product without checking the I.D. of an undercover buyer.

  • Ispire Technology Sees Jump in Revenue and Profits

    Ispire Technology Sees Jump in Revenue and Profits

    Photo: Freedomz

    Ispire Technology reported revenue of $42.9 million and gross profit of $6.9 million in the quarter that ended Sept. 30, reflecting growth of 59.1 percent and 43.7 percent, respectively, over the comparable 2022 quarter.

    Revenue from cannabis vaping products jumped 116.8 percent to $17.3 million, and revenue from tobacco vaping products was up 34.8 percent to $25.5 million.

    Ispire co-CEO Michael Wang attributed the growth to the company’s expansion in the United States and the reception there of its most recent product, Ispire One. “Our business strategy has clearly manifested as we continue to redefine the vaping experience, consistently delivering high-quality and groundbreaking products that align with customer preferences,” he said.

    “We remain confident in our ability to maintain our position as the leading premier precision dosing technology company as we’ve not only secured our position in existing markets but have also made inroads into new geographies, adapting swiftly to increased market demands. The establishment of a new manufacturing facility in Malaysia marks a strategic step into the Southeast Asian market, signaling our readiness for scalable operations.”

  • Juul Labs Raises Estimated $1.3 Billion in Funding

    Juul Labs Raises Estimated $1.3 Billion in Funding

    Credit: OleksandrO

    Juul Labs has raised an estimated $1.3 billion in funding, reports Reuters.

    The company has been seeking financing alternatives in a bid to protect its business as it deals with lawsuits related to the marketing of its e-cigarettes.

    Earlier this year, Juul announced a company restructuring aimed at reducing operating costs and positioning the company to continue to advance its mission during a period of regulatory and marketplace uncertainty.

    In April, the company agreed to pay $462 million over eight years to settle claims by six U.S. states, along with the District of Columbia, that it unlawfully marketed its addictive products to minors.

    In November 2022, the company secured funding from some of its early investors to help keep it afloat while cutting about 400 jobs and reducing its operating budget.

    Altria Group exited its stake in Juul earlier this year, days before announcing its purchase of Njoy Holdings for about $2.8 billion.

  • Kaival Appoints Hopkins as Executive Chairman

    Kaival Appoints Hopkins as Executive Chairman

    Image: Monster-Ztudio

    Kaival Brands Innovations Group has expanded the role of Barry Hopkins, chairman of the board, to the new position of executive chairman. In this role, Hopkins will serve as Kaival Brands’ principal executive officer. Current President and CEO Eric Mosser will continue to manage day-to-day operations of the company.

    Hopkins joined Kaival Brands as chairman of the board in March 2023. He is a 40-year tobacco industry veteran with deep operational experience and industry contacts. With his expanded responsibilities, Hopkins will play a more active role in the strategic direction and oversight of the company, with a focus on accelerating revenue growth, improving operational efficiencies and executing on Kaival Brands’ strategic initiatives.

    “Since I joined Kaival Brands in March, I have become even more energized by the opportunities for our company and look forward to working with Eric and our excellent senior leadership team to refine our strategic business plan and reignite growth,” said Hopkins in a statement. “I aim to foster a culture of performance and accountability and to establish clear decision-making processes and strong communication, which are essential for moving our promising business forward.”

    Hopkins spent most of his decades-long career primarily in senior sales and marketing roles for Turning Point Brands and Altria.

  • Kaival Brands: Scan Data Key to Beating Back Black Market

    Kaival Brands: Scan Data Key to Beating Back Black Market

    At a conference of administrators, attorneys, and businesspeople on tobacco regulation, Russell Quick, president of Kaival Marketing Services, said regulatory agencies can use the same data in a recently published ranking of disposable vape devices as a “roadmap” to identifying companies marketing illegal vaping products.

    Quick, whose company markets the Bidi Stick brand of electronic nicotine delivery system (ENDS), spoke at the Tobacco and Nicotine Products Regulation and Policy Conference sponsored by the Food and Drug Law Institute (FDLI) in Washington, D.C.

    He said a ranking from New York-based Nielsen shows 10 of the 11 named disposable ENDS were not compliant with the U.S. Food and Drug Administration’s regulatory processes, according to a press release.

    Thirty-four companies were named in a lawsuit filed in October by Altria subsidiary NJOY over non-compliant products.

    “Scan data now is at our fingertips … and you can literally pull this data to see which retailers are selling which non-compliant product and which wholesalers are distributing [these products] — that’s one good way to revolutionize vape enforcement,” Quick told the roughly 200 attendees during a panel discussion. “What’s really hurting the industry are illegal, non-compliant bad actors in the U.S. vaping market undermining the potential of e-cigarettes to help adult smokers quit.”

    Quick said that if law enforcement agencies started using scan data to call out illegal activity, the vaping industry could ultimately regulate itself. “Most major stakeholders already follow the rules,” Quick said, “but non-compliant companies take a major share of the market.”

    For its part, Bidi Vapor submitted premarket tobacco product applications (PMTAs) to the FDA for all 11 of its flavored devices, which are currently under scientific review.

    During the PMTA evaluation period, Bidi Vapor can market its Bidi Stick products, subject to FDA enforcement discretion.

  • FEELM2.0 Vape Solution Scores Major UKVIA Award

    FEELM2.0 Vape Solution Scores Major UKVIA Award

    Smoore International, parent to FEELM and Vaporesso vaping brands, received awards two major awards at the UKVIA Vaping Industry Forum.

    Smoore scored awards for the Best Innovation in the Vaping Industry for its FEELM2.0 technology solution that was voted on by attendees event. The company also won the Most Responsible Vaping Business at the UKVIA Vaping Industry Forum.

    The annual UKVIA forum is the largest vaping industry event in the UK. The event focuses on the major opportunities and challenges in the industry, attracting key figures from the government, parliament, regulatory bodies, the healthcare community, retail sector and research community.

    Rex Zhang, the strategy director for Smoore, made the point that the major challenges of the disposable vaping sector could all be contributed to the lack of innovation at the core of vaping technology.

    The stagnation has pushed consumers to look elsewhere for better value while also creating a homogeneous competition between brands.

    “Inter Scientific has tested FEELM2.0 with the top sellers on the market in their UK labs. Inter Scientific procured seven disposable vapes from each of the Top 3 brands and included our new solution to be measured in several dimensions,” said Zhang. “All samples were measured to be within the compliant volume and nicotine level and the report shows a very evident improvement in two main aspects.

    “Our new solution is proven to pretty much double the industry average of puffs, over 1000 puffs within a 2mL container. Also, solving the pain point of waning flavors, FEELM2.0 keeps the vapor volume consistent with only 3 percent variation, compared to others which would have flavor drop off with variation of vapor volume up to 47 percent. The consistency of vapor volume is directly correlated to the consistency of flavor quality.”

  • RLX Technology Report Shows Revenue ‘Challenges’

    RLX Technology Report Shows Revenue ‘Challenges’

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB428.1 million ($58.7 million) in the third quarter of 2023, compared with RMB1.04 billion in the same period of 2022. Gross margin was 24.7 percent in the third quarter of 2023, compared with 50 percent in the comparable 2022 quarter. GAAP net income was RMB172.7 million, down from RMB505.2 million in the prior-year period.

    “The end of the third quarter of 2023 marked one year since the new regulatory framework for the e-vapor industry came into effect,” said Ying (Kate) Wang, co-founder, chairperson and CEO of RLX Technology, in a statement.

    “As a legitimate industry participant, we have remained dedicated to developing our product portfolio to provide adult smokers with compliant, superior-quality products. While we have made some progress with our recovery, we are still facing external challenges, especially the impact of illegal products. We recognize that many users are still unaware of these new regulations, such as flavor restrictions, which has slowed their adoption of the new national standard products.

    “To address these near-term obstacles, we will forge ahead with our core strategy: providing a wide variety of quality, compliant products across an extensive range of price points to meet users’ various needs. Meanwhile, we are making efforts to enhance users’ understanding of the new regulations and collaborating with regulators to combat illegal products and create a healthy and orderly market. As a trusted e-vapor brand for adult smokers, we believe that more users will gradually switch to our products as increased awareness of the new regulations and the dangers of substandard, illegal products rises.”

    “In the third quarter of 2023, we continued to face significant headwinds due to competition from illegal products,” added RLX Technology Chief Financial Officer Chao Lu. “Against this challenging backdrop, we resolutely executed our strategy and focused on improving profitability, which continues to be our top priority.

    “Our strategic cost optimization initiatives have begun to demonstrate positive outcomes, including a consistent reduction in our non-GAAP operating loss and signs of recovery in our non-GAAP net profit margin. Notably, we achieved a second consecutive quarter of positive operating cash flow this quarter, underscoring our business’ resilience in the post-regulatory era. Looking forward, we will remain committed to enhancing our financial performance and delivering sustainable value to our shareholders.”

     

  • Organigram Holdings Searching for Next CFO

    Organigram Holdings Searching for Next CFO

    Credit: Tasha Tuvango

    Derrick West will transition away from his role as chief financial officer at Organigram Holdings to focus on recovery following surgery later this month.

    Paolo De Luca, current chief strategy officer, has been appointed interim CFO while the company completes a search for a new permanent CFO. De Luca previously served as the company’s CFO between 2017 and 2020.

    “Derrick has left a legacy of stabilizing our financial processes along with the implementation of our ERP and has supported the company through a period of high growth including the acquisitions of our Winnipeg and Lac-Supérieur facilities,” said Organigram CEO Beena Goldenberg in a statement. “We are grateful for his contributions during his time on the board beginning in 2017 and since becoming CFO in 2020 and we wish him well.”

    Organigram Holdings is the parent company of Organigram, a licensed producer of cannabis, cannabis-derived products and cannabis infused edibles in Canada.

    Recently British American Tobacco increased its equity position in Organigram from 19 percent to 45 percent.

  • Attorney General of Virginia Pens Letter to U.S. FDA

    Attorney General of Virginia Pens Letter to U.S. FDA

    Credit: RawF8

    Virginia Attorney General Jason Miyares sent a letter to the U.S. Food and Drug Administration commissioner asking for increased regulation of illegal electronic nicotine delivery systems (ENDS) products.

    Miyares emphasizes that despite efforts to curtail underage access to vaping and e-cigarette products, there is no centralized enforcement mechanism or license to hold shops accountable.

    Additionally, many illegal knock-off ENDS products are being brought into the country from China and pose the risk of being laced with fentanyl, Miyares claims. He says the FDA must focus on bolstering enforcement and regulation to mitigate the possible risks associated with youth-targeted products.

    The letter states that “the Associated Press recently advanced the opinion that the influx of illegal disposable ENDS products are due to ‘the Food and Drug Administration’s inability to control the tumultuous vaping market more than three years after declaring a crackdown on kid-friendly flavors.’”