Tag: news

Flavor Restrictions Cause Spike in Online Vape Sales

Photo: Ngampol
Eric Leas
Online shopping for cigarettes and vaping products increased significantly in the weeks following the implementation of a 2022 California law prohibiting the sale of flavored tobacco products.
Reporting in Tobacco Control, researchers at the Herbert Wertheim School of Public Health and Human Longevity Science at University of California San Diego assessed the impact of California’s statewide flavor restriction on online shopping behavior among consumers. Comparing observed rates of shopping queries with expected rates, researchers discovered that shopping queries were 194 percent higher than expected for cigarettes and 162 percent higher than expected for vape products.
“Retailer licensing programs have proven to be effective in enforcing tobacco control laws. However, the exclusion of e-commerce retailers from these programs can undermine their impact,” said principal investigator Eric Leas in a statement.
Despite the flavor restriction, analysis of the first 60 websites returned in the search queries presented at least two online retailers offered access to flavored vaping products or menthol cigarettes to consumers in California—with one query returning as many as 36 websites (60 percent of the search results).
The study authors recommend strengthening regulations to include e-commerce retailers within the scope of retailer licensing programs.
November 8, 2023
BAT Invests Another $90.5 Million in Organigram

Credit: Roxxy Photos
Organigram Holdings Inc. has extended its relationship with British American Tobacco. The move boosts the Canadian cannabis producer’s financial strength and positioning it to expand globally.
Organigram said in a statement that BAT is investing a further $90.5 million in the business, building on an initial $160 million injection back in 2021.
Organigram said the investment will allow it to extend its footprint beyond Canada, and also strengthen its financial position for long-term, sustainable growth, according to media reports.
“This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company,” said Beena Goldenberg, chief executive of Organigram.
The firm said the deal enables it to invest in growing the topline of its core business, while optimizing operations to deliver on cost-saving efficiencies, thus accelerating earnings growth.
Organigram will use the majority of the investment to create a strategic investment pool, named Jupiter.
Jupiter will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets, it said.
November 8, 2023
FDA Warns Nic Nac Naturals for Illegal Flavored ‘Nicotine Mints’

The U.S. Food and Drug Administration issued a warning letter to Nic Nac Naturals for the marketing of their unauthorized dissolvable nicotine products, which the company describes as “nicotine mints” and which resemble a pack of mints. These products are of particular concern because of their resemblance to popular candies and the potential to cause severe nicotine toxicity or even death if accidentally ingested by young children, according to the FDA.
“FDA remains steadfast in our commitment to actively monitor the marketplace and to crack down on companies selling unlawful products, particularly those that can appeal to youth,” said Brian King, director of the FDA’s Center for Tobacco Products (CTP). “Our goal is to identify and prevent these emerging threats to our nation’s youth before they become mainstream.”
The manufacturer markets these tobacco products in a variety of mint and fruit flavors, all of which come in two nicotine strengths (3 mg or 6 mg). The packaging states the products contain nontobacco nicotine. The FDA regulates tobacco products containing nicotine from any source, including nontobacco nicotine. Nic Nac Naturals does not have a marketing authorization order from the agency to sell or distribute these products in the U.S.
One container of 15 of these mints can have as much as 90 mg of nicotine total. According to research, the FDA stated, ingesting 1 mg to 4 mg of nicotine could be toxic or severely toxic to a child under 6 years old, depending on body weight. This means ingesting one mint could be severely toxic to a child under 6 years old. Nicotine toxicity among youth of any age can lead to nausea, vomiting, abdominal pain, increased blood pressure and heart rate, seizures, respiratory failure, coma and even death. The FDA also stated that nicotine is highly addictive and exposure during adolescence can harm the developing brain.
“Today’s action is another example of our ongoing efforts against illegal nontobacco nicotine products,” said Ann Simoneau, director of the CTP’s Office of Compliance and Enforcement. “We remain unwavering in our use of compliance and enforcement resources to curb unlawful marketing of tobacco products, particularly those that youth could easily confuse with something that they consume regularly—like candy.”
The company has 15 working days to respond to the FDA with steps they will take to correct and prevent future violations. Failure to respond and correct violations may result in addition FDA action, such as an injunction, seizure and/or civil money penalties.
November 7, 2023
EU Public Health Endorses Vapes to Quit Smoking

The European Union’s Subcommittee on Public Health (SANT) has endorsed the potential role of vaping in supporting smoking cessation.
Parliament’s report on non-communicable diseases acknowledges that vaping is a way for smokers to quit smoking combustible cigarettes gradually. However, the SANT’s recommendation to ban vaping in some public areas has sparked debate and concern.
Michael Landl, director of the World Vapers’ Alliance, said Parliament’s recognition that vaping can help smokers quit is a step in the right direction.
“With the well-documented success of vaping as a smoking cessation aid, it’s crucial for the EU to fully embrace this tool within its strategy to reduce smoking-related illnesses,” he said. “Vaping not only offers a way out for smokers but is instrumental in achieving public health goals.”
Despite this recognition, the report’s proposal to extend smoking bans to vaping is seen as problematic, according to Landl.
“Treating vaping the same as smoking in public spaces sends the wrong message to smokers who want to quit. There is no evidence of harm from secondhand vaping,” Landl said. “The Subcommittee must reconsider the broader impact, including the risk of former smokers relapsing. A more thoughtful regulatory approach based on common sense is imperative to ensure that vaping remains a viable option for those committed to quitting cigarettes.”
November 7, 2023
Global Vaping Market to Reach $93.9 Billion by 2030

Credit: Jet City Image
The global vaping and e-cigarette market was valued at $24.19 billion in 2021. That number is projected to reach $93.94 billion by 2030, registering a CAGR of 16.27 percent from 2022 to 2030, according to Straits Research.
In a recent report for market participants in the vaping industry, the demand for diversely flavored products represents a “lucrative opportunity.” Similarly, technological developments in the industry are anticipated to contribute to the sector’s growth.
“The vaping industry has established numerous organizations to oppose anti-vaping legislation and to regulate the sector for monitoring and promoting the development of the e-cigarette and vaping markets, which are anticipated to boost the smokeless cigarettes market’s key trends and opportunities during the period 2022-2030,” a release states. “In recent years, regional government bans on the sale of vaping products and e-liquids in countries such as the United States and India have hindered the expansion of the smokeless cigarette sector.”
The Asia-Pacific market size for e-cigarettes is predicted to expand at a CAGR of 16.2 percent between 2022 and 2030. The report states it is anticipated that the presence of established product manufacturers in China and the rising demographic advantage for retailers would contribute to expanding the vaping industry in the region.
The European vaping industry is anticipated to expand significantly during the forecast period. “E-cigarettes and vaping products from companies such as BAT’s Vype and Imperial Brands Blu have been certified by European health regulators as a healthier alternative to tobacco smoking, which is expected to promote the growth of the smokeless cigarettes industry in Europe,” the report states.
November 7, 2023
Ontario to Double Taxes on Vapes Sold in Province

Ontario, in partnership with Canada’s national government, will double the tax on all vaping products sold in the province.
The federal/provincial tax partnership scheme that was announced in 2022 allows provinces to double the current federal vape tax and keep half the proceeds, according to Vaping360.
The Canadian Vaping Association (CVA) urged the federal government to reconsider its proposal to impose an additional provincial levy, as this would effectively double the already substantial tax burden. “The CVA suggests a more equitable approach where the federal government shares the revenue generated by the current levy with the provinces,” the industry group wrote in a statement.
“With the introduction of the excise tax, depending on product type, vape products are now almost as expensive as cigarettes despite the significant reduction in risk,” the statement says.
The CVA cautioned that the increased tax may lead to more illicit trade. “Legal businesses will find it nearly impossible to compete with the unregulated market that remains largely unchecked. The consequence of such punitive taxation will be widespread business closures, significant job losses and an increase in criminal activity.”
“The CVA encourages the province to leverage its negotiating influence with the federal government to establish a fair revenue-sharing framework for the existing tax revenue. Preserving the regulated market, rather than destroying it, will lead to higher tax revenues. The additional revenue generated can be used by the province to increase enforcement resources and support educational programs for youth,” said Darryl Tempest, government relations counsel to the CVA.
November 7, 2023
BAT Designer Urges Responsible NGP Creations

Photo: KFF
Product designs should not center only on providing attractive appearance but also encompass meaning, value and responsibility, according to Ken Kim, head of design at the BAT Group.
“The role of designers is changing, from simply designing products to assuming social and environmental responsibilities,” Kim said at the Design Korea conference, which took place Nov. 1-5, 2023, in Seoul. “This [new role] is not a choice for individual designers to make, but a common goal the industry and society must undertake together in order to move forward.”
Kim is the first Korean to head BAT’s product design division. His portfolio includes tobacco heating products such as Vuse Epod 2, Glo Pro Slim and Glo Hyper X2.
During the conference, which was reported in The Korea Herald, Kim reviewed measures on how designs could address social issues such as carbon neutrality amid heightened regulations, emphasizing that designs could function as an important key to the tobacco industry’s sustainable future.
He stressed the importance of designing products in ways that do not appeal to underage consumers. “We need a balanced design strategy that does not stimulate the curiosity of minors, through conducting analysis of design preferences by age groups,” he was quoted as saying.
November 6, 2023
Alabama Vape Registry Offers Louisianna Preview
Credit: Jet City Image
A Louisiana state court has put the brakes on the state’s release of its official vaping and e-cigarette registry. However, Alabama’s registry, which has been active since spring 2022, may offer some insight into what products Louisiana will allow on the market.
Passed earlier this year, Louisiana’s new law bans retailers from selling vape products not listed on a state-approved registry, known as the V.A.P.E. Directory. To receive authorization, products need a marketing order from the U.S. Food and Drug Administration or must meet one of several narrow exceptions, which favor products that have been on the market since at least 2016.
It’s still unclear which products will be listed in the directory, but Louisiana’s new law mirrors one that’s already in effect in Alabama, which has been keeping a similar list of pre-approved vaping and e-cigarette products, called the Electronic Nicotine Delivery Systems Products Directory, for over a year.
There are 1,602 vaping, e-cigarette, and alternative nicotine products listed in Alabama’s directory, meaning that many products can still be legally sold in the state, according to NOLA.com. On it are several kinds of JUUL products, various flavors of ZYN nicotine Pouches, Vuse, NJOY and BIDI Stick products.
Missing from the list are several massively popular disposable vapes, including Elf Bars, Puff Bars and EscoBars.
To check out the products on Alabama’s list for yourself, go to the Alabama Department of Revenue’s website.

Click the green box at the top right corner of the homepage that says “MyAlabamaTaxes.”
Scroll to the “Businesses” section, and click “View or upload a report.”
Under “Tobacco Reports,” click “ENDS Product Directory.”
Click the green “Search” button for every product in Alabama’s directory. Or toggle the “Manufacturer” or “Product” buttons and then search for the products you’re interested in.
If the product you search for does not appear on the list, it is not authorized for sale in Alabama and likely will not be authorized for sale in Louisiana, according to sources.
November 6, 2023
KT&G Boosts Capacity for Next-Generation Products

Photo: KT&G
KT&G has expanded its Sin Tanjin next-generation product (NGP) factory to establish an innovation hub for electronic cigarette production.
During a ceremony celebrating growth the attended by CEO Baek Bok-in and over 40 employees, the company pledged to nurture its NGP segment into a leading business.
The South Korean tobacco company has installed three additional electronic cigarette stick production lines this year, bringing the total number to eight. It also established an automated warehouse capable of storing up to 360,000 boxes.
KT&G plans to further expand its production innovation hubs, focusing on domestic manufacturing facilities such as Sin Tanjin and Gwangju, to ensure a smooth response to the rapidly growing demand for its NGP products.
The expansion of the Sin Tanjin NGP factory is part of KT&G’s investment plan that was announced during the “Future Vision Proclamation” in January.
During that event, KT&G announced its strategy would focus on e-cigarettes, heated tobacco and the international expansion of its combustible cigarette business. The company intends to increase the revenue share of its noncombustible products to more than 60 percent by 2027 through investments and innovation.

The Sin Tanjin NGP factory will play a role as a growth engine that enhances the essential competitiveness of the NGP business, which is strengthening its market leadership.
Baek Bok-in , CEO, KT&G
In September, KT&G announced the construction of a new factory in Indonesia, which will be manufacturing for exports. In October, it broke ground for a new factory in Kazakhstan, establishing a foothold in Eurasia.
“The Sin Tanjin NGP factory will play a role as a growth engine that enhances the essential competitiveness of the NGP business, which is strengthening its market leadership,” said KT&G Baek in a statement.
“In the future, we will lead the growth of the NGP business based on innovative technology and advanced global partnerships and will leap to the ‘global top-tier’ through domestic innovative growth investments, including expanding production infrastructure.”
November 6, 2023
Lawsuit Pushes Pause on Louisiana Law Banning Vapes

Credit: DedMityay
The Louisiana Convenience and Vape Store Association filed a temporary restraining order and permanent injunction regarding a law that would remove unapproved vapor products from the market.
The law, which also approved increasing taxes on vaping products, requires retailers to register vape products with the Louisiana Alcohol and Tobacco Control in the V.A.P.E. Directory by Nov. 1.
Two state agency heads are listed as defendants in the lawsuit filed in East Baton Rouge Parish — ATC Commissioner Ernest Legier and Louisiana Department of Revenue Secretary Kevin Richard, according to media reports.
“The Louisiana Department of Revenue administers state tax laws as passed by the legislature and signed by the Governor,” said Richard in a statement Thursday. “Act 414 of the 2023 Regular Session of the Louisiana Legislature is no exception. The Department will respect the judicial process and will reevaluate collection efforts and enforcement once this matter is resolved.”
Court records show a hearing is set for Nov. 8.
November 3, 2023