Tag: RJ Reynolds Vapor Co.

RJR Vapor Denied New Trial in $95 Million Altria Verdict

Credit: Kristina Blokhin
RJ Reynolds Vapor Co. was denied a new trial on its September loss that awarded $95 million to Altria Group for its Vuse Alto e-cigarette’s infringement of three vape pod patents.
“That the jury did not agree with” Reynolds “does not mean the trial was unfair,” Judge N. Carlton Tilley Jr. wrote in an opinion issued Thursday in the U.S. District Court for the Middle District of North Carolina, according to Bloomberg Law.
Tilley denied BAT subsidiary Reynolds’ motion for a new trial or to reduce the damages jurors awarded to Altria Client Services in their Sept. 7 verdict.
In its retrial request, Reynolds Vaper stated that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial. Erroneous evidentiary rulings also prejudiced Reynolds’ ability to present its defense. Those errors independently, and under the cumulative error doctrine, affected the verdict such that a complete new trial is required.”
Altria said in a statement that “this was a fair trial. There is no basis for another trial, and we are pleased that the jury correctly found that Reynolds Vapor has infringed a number of our patents.”
January 14, 2023
Juul’s Market Share Still Falling, Vuse Continues Growth

Credit: Golib Tolibov
The top-selling Vuse electronic cigarette of R.J. Reynolds Vapor Co. continued to expand the market-share gap with Juul in both monthly and yearly comparisons.
Vuse’s market share rose from 40.7 percent in the previous report to 41.1 percent, compared with Juul declining from 27 percent to 26.7 percent. For 2022 overall, Vuse’s market share was 35.7 percent, compared with 30.1 percent for Juul.
No. 3 NJoy slipped from 2.8 percent to 2.7 percent, while Fontem Ventures’ blu eCigs was unchanged at 1.4 percent.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 23.7 percent decline in the latest report, according to media reports.
By comparison, Reynolds’ Vuse was up 32.7 percent in the latest report, while NJoy was up 0.1 percent, blu eCigs down 33.4 percent and Japan Tobacco’s Logic down 15.1 percent.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share.
On Sept. 30, Altria Group Inc. cleared the way to re-enter the e-cigarette marketplace after choosing to permanently end its non-compete agreement with Juul Labs.
January 12, 2023
RJ Reynolds Asks SCOTUS to Stop California Flavor Ban

Credit: Sean Pavone Photo
R.J. Reynolds and other vaping and tobacco companies filed a request Tuesday asking the Supreme Court of the United States to impose an emergency order to stop California from enforcing a ban on flavored vaping and other tobacco products.
The ban was overwhelmingly approved by voters earlier this month.
First passed by the state legislature two years ago, the ban never took effect after tobacco companies gathered enough signatures to put it on the ballot, according to media reports.
However, after nearly two-thirds of voters approved of banning the sale of everything from cotton-candy flavored e-liquid to menthol cigarettes. The law is set to go into effect by Dec. 21.
Supporters of the ban say the law was necessary to put a stop to a staggering rise in teen smoking.
Several companies filed suit over filed a lawsuit against California in federal court over the state’s ban on flavored products one day after voters backed the ban in a Nov. 8 referendum. However, the 9th U.S. Circuit Court of Appeals on Tuesday denied the company’s emergency motion to block the law pending appeal.
The companies suing California argue that the authority to ban flavored products rests in federal law. The Family Smoking Prevention and Tobacco Control Act gives the FDA the authority to regulate tobacco.
In the filing, the companies said they would suffer “irreparable harm” from not being able to sell the products in one of the nation’s largest markets.
The companies argued that small retailers will face laying off employees and possibly closing. Among those filing for the order is the Neighborhood Market Association, a group of San Diego retailers that include vape shops.
November 30, 2022
Vuse Market Share Over 40%, Juul Drops Below 28%

Credit: RJR Vapor Co.
The Vuse e-cigarette continues to widen its market share lead over Juul in both monthly and yearly comparisons.
The latest Nielsen analysis of convenience-store data, released Tuesday, covers the four-week period ending Nov. 5.
Owned by R.J. Reynolds Vapor Co., Vuse’s market share rose from 40 percent in the previous report to 40.4 percent, compared with Juul declining from 28 percent to 27.6 percent, according to the Winston-Salem Journal.
Vuse expanded its year-over year advantage to 34.4 percent to 31.5 percent compared with 33.6 percent to 32 percent in the previous report.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, such as vape shops, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
No. 3 NJoy was unchanged at 2.8 percent and Fontem Ventures’ blu eCigs was unchanged at 1.4 percent.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 20.1 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 35 percent in the latest report, while NJoy was up 7.6 percent and blu eCigs down 35.4 percent.
On Nov. 11, Juul confirmed it is eliminating up to 400 jobs and obtaining financing from its earliest investors.
Multiple media outlets, first by the Wall Street Journal and cable business channel CNBC, reported the downsizing initiative also includes slashing its operating budget by between 30 percent and 40 percent.
November 17, 2022
Reynolds Reignites Vuse IP Suit With Rival Altria

R.J. Reynolds Vapor Co. has asked for a new trial after a U.S. District Court awarded rival Altria Client Services $95.23 million in damages related to an e-cigarette intellectual property dispute, reports the Winston-Salem Journal.
In early September, a federal jury determined that Reynolds Vapor’s Vuse Alto product infringes on three Altria patents.
In its retrial request, Reynolds Vaper stated that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial. Erroneous evidentiary rulings also prejudiced Reynolds’ ability to present its defense. Those errors independently, and under the cumulative error doctrine, affected the verdict such that a complete new trial is required.”
Altria said in a statement that “this was a fair trial. There is no basis for another trial, and we are pleased that the jury correctly found that Reynolds Vapor has infringed a number of our patents.”
The complaint concerns three patents awarded to Altria Client Services by the U.S. Patent and Trademark Office based on filings in April 2015.
Altria alleged Reynolds Vapor violated Altria’s patents covering the pod assembly used in Vuse Alto.
Reynolds believes the lawsuit was filed in retaliation for patent infringement complaints filed by Reynolds in April 2020 for infringement by Philip Morris International’s IQOS tobacco-heating device of six Reynolds patents.
Until recently, Altria was the exclusive U.S. distributor for IQOS in the United States.
On Sept. 29, 2021, the U.S. International Trade Commission upheld an initial determination from May 2021 that Philip Morris International’s IQOS device infringes on two patents owned by Reynolds. The ruling barred Altria Group from importing IQOS products into the U.S.
November 7, 2022
Vuse’s U.S. Market Share Hits Double Digits Over Juul

It just keeps growing. In the latest Nielsen analysis of convenience-store data, the market-share gap between Vuse and Juul vaping products has stretched to a double-digit lead for Vuse.
The analysis, released Tuesday, covers the four-week period ending Sept. 10.
Vuse’s market share rose from 39 percent in the previous report to 39.7 percent, compared with Juul declining from 29.4 percent to 28.1 percent.
Vuse also has also now edged ahead of Juul in the year-over-year comparison at 32.9 percent to 32.7 percent, respectively. It’s the first time Vuse has led the year-over-year comparison.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen, according to the Winston-Salem Journal.
The looming potential for an outright ban of Juul Labs’ e-cigarettes from U.S. retail shelves has accelerated the market-share gains of R.J. Reynolds Vapor Co.’s Vuse brand, according to reports.
Meanwhile, No. 3 NJoy dropped from 2.9 percent to 2.8 percent, while Fontem Ventures’ blu eCigs slipped from 1.6 percent to 1.4 percent.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 17.7 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 41.4 percent in the latest report, while NJoy was down 5.6 percent and blu eCigs fell to 30.2 percent.
September 21, 2022
Reynolds, BAT Continue E-Cigarette Price Increases

BAT is accelerating the pace of price hikes for its e-cigarette brands and traditional tobacco products even as inflation continues to clamp down on consumers’ discretionary spending.
Goldman Sachs analyst Bonnie Herzog released Monday a detailed analysis to investors of the R.J. Reynolds Vapor Co.’s top-selling U.S. e-cigarette Vuse.
Another round of price increases also is set for R.J. Reynolds Tobacco Co. products; list-price hikes went into effect Monday.
Herzog’s reports are based on “industry trade contacts” and are rarely wrong.
The list price is what wholesalers pay manufacturers for their traditional cigarette products. The increase typically is passed on to customers at retail, according to the Winston-Salem Journal.
“While there is some increased risk of potential downtrading and concerns that manufacturers have less pricing power today, we believe brands … with a very loyal customer base and strong/effective promotions should be able to keep those consumers within the franchise,” Herzog said.
Reynolds also is raising by 17 cents per pack the price of its heat-not-burn traditional cigarette Eclipse, which is sold in limited stock.
August 25, 2022
Market Share Between Vuse and Juul Continues to Widen

The market share between Vuse and Juul e-cigarettes continues to grow, according to the latest Nielsen analysis of convenience-store data.
The analysis, released Tuesday, covers the four-week period ending Aug. 13.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
In recent months, the shadow of a potential banning of Juul Labs Inc.’s e-cigarettes from U.S. retail shelves has accelerated the market-share gains of R.J. Reynolds Vapor Co.’s Vuse brand.
Vuse’s market share rose from 37.4 percent in the previous report to 39 percent, compared with Juul declining from 30.7 percent to 29.4 percent.
Meanwhile, No. 3 NJoy dropped 3 percent to 2.9 percent, while Fontem Ventures’ blu eCigs slipped from 1.7 percent to 1.6 percent percent.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 20.1 percent decline in the latest report, according to the Winston-Salem Journal.
By comparison, Reynolds’ Vuse was up 39.8 percent in the latest report, while NJoy was down 11.5 percent and blu eCigs down 29.9 percent.
Goldman Sachs analyst Bonnie Herzog wrote in her Tuesday note to investors that Juul’s market share decline occurred in part “following confusion around the FDA’s marketing denial order against Juul.”
Juul still maintains a 33.7 percent to 32.6 percent market-share lead over the previous 52 weeks.
August 25, 2022
Judge Boosts Philip Morris’ IQOS Infringement Award

Photo: New Africa
R.J. Reynolds Vapor Co. owes Philip Morris Products more than $14 million after a federal judge on Aug. 17 increased a jury’s June patent-infringement award over vapor products to include prejudgment interest and supplemental damages, reports Bloomberg Law.
Judge Leonie M. Brinkema amended the judgment entered June 15 in the U.S. District Court for the Eastern District of Virginia to reflect a total judgment amount of $10.9 million for infringement of one patent and $3.16 million for infringement of another.
In its June 15 judgement, the jury found that RJR’s Vuse Solo and Alto devices infringe two Philip Morris patents covering parts of a vaping device for heating substances and preventing leaks. At the same time, the jury cleared Vuse Alto of infringing one of the patents.
The verdict concerned counterclaims in RJR’s ongoing patent lawsuit over PMI’s IQOS heated-tobacco device. RJR won an order blocking IQOS imports at the U.S. International Trade Commission last November.
Philip Morris succeeded earlier this year in invalidating parts of some patents RJR accused it of infringing at a U.S. Patent Office tribunal.
RJR parent company BAT has also sued Philip Morris over IQOS in the United Kingdom, Germany and elsewhere. A PMI filing with the U.S. Securities and Exchange Commission earlier this year said IQOS patent lawsuits and challenges outside of the U.S. have “repeatedly and universally failed.”
Altria has separately sued Reynolds for patent infringement in North Carolina over the Vuse line.
August 21, 2022
Reynolds’ Vuse Continues Market Gains Over Juul

The R.J. Reynolds Vapor Co. and its Vuse brand e-cigarette continues to gradually grow its U.S. market-share lead over Juul.
Vuse’s market share rose from 35.1 percent to 35.5 percent, compared with Juul declining from 33.1 percent to 32.9 percent, according to the latest Nielsen analysis of convenience-store data that covers the four-week period ending June 18.
It is the first Nielsen report since the U.S. Food and Drug Administration announced Thursday that Juul Labs would be required to remove all of its e-cigarette products from U.S. shelves. The U.S. Court of Appeals for the D.C. Circuit on Friday granted Juul Labs an emergency administrative stay of enforcement.
For the latest report, NJoy dropped from 3 percent to 2.9 percent, while Fontem Ventures’ blu eCigs slipped from 1.9 percent to 1.7 percent.
The decision to remove the No. 2-selling electronic cigarette in the country will likely to lead to a dominant market share for Vuse products. However, for the past 52 weeks, Juul remains ahead 35.1 percent to 31.2 percent, according to the Winston-Salem Journal.
“Having received the emergency temporary stay, we are now seeking the ability to continuously offer our products to adult smokers throughout our appeal with the court and science- and evidence-based engagement with our regulator,” Joe Murillo, Juul Labs’ chief regulatory officer, said Tuesday. “We remain confident in our science and evidence and believe that we will be able to demonstrate that our products do in fact meet the statutory standard of being ‘appropriate for the protection of the public health.’ “
Nielsen largely covers larger chain stores and doesn’t track local vape shop sales. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen, such as the rise of disposable products.
Nielsen determined that Vuse recaptured the top market share in the April 23 report. That was the first time Vuse held the top market share in the Nielsen report since November 2017.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 12.2 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 40.5 percent in the latest report, while NJoy was down 14.1 percent and blu eCigs down 27.9 percent. Goldman Sachs analyst Bonnie Herzog has said that NJoy “refutes Nielsen’s data and methodology.”
Another factor is that e-cigarette sales overall have slumped since February 2020, when the FDA implemented its latest round of heightened regulations on the products.
June 29, 2022