According to the latest Nielsen convenience store report, R.J. Reynolds Vapor Co.’s Vuse still holds a comfortable lead in e-cigarette market share for the four weeks ending Oct. 7.
The company saw its lead increase slightly from 41.7 percent to 41.8 percent, while Juul’s share decreased from 24.7 percent to 24.4 percent, according to media reports.
This comes after Juul Labs Inc.’s regulatory concessions earlier this year caused their share to drop from 74.6 percent.
Meanwhile, Altria Group Inc.’s complete acquisition of NJOY on June 1 has yet to translate into any considerable increase in market share, as the companies only dipped about 0.1 percent from 2.6 percent to 2.5 percent.
Fontem Ventures’ blu eCigs, an affiliate of Imperial Brands Plc, rose from 1.2 percent to 1.3 percent.
“The more things change, the more they stay the same,” is an expression that has been around for almost two centuries, and it speaks to the fact that the small picture(s) of life may change, but the larger one does not. The vape industry and all the challenges and changes that have happened in the past decade are totally contrary to that famous saying.
A decade ago, the vape industry was the epidemy of the Wild, Wild West, full of vape shops springing up on every corner, and any/everyone creating e-liquids in their bathtubs at home. Regulation and competition changed all that and brought some semblance of “orderliness” to the market, but as state and federal regulations bombarded the industry, and with the FDA creating onerous and unattainable guidelines, the vape space has truly become one of survival.
I recently attended a vape event in Phoenix which brought together several dozen top manufacturers, distributors, and buyers, and universally everyone lamented the same concern: business is down.
Why is business down?
The reasons are many, including strict regulations, and now, even more enforcement of those regulations, but overall, the cause was much simpler. The huge COVID-19 rebound in 2020-22 put more money in consumers’ pockets and more time on their hands. Those issues combined created an artificial bubble that many thought would last. But time has passed. Add in the inflation that has pushed up food and other cost of living expenses, and some former necessities are now becoming unaffordable luxuries.
“It’s a balancing act between the addictive nature of some nicotine products and the limitations of buyer’s budgets,” said Jamie Reed with Simple Vape Supply from Orange County California. “I’ve been in the industry for over ten years, and this is evolution in its purest form and based around ’survival of the fittest.’”
Simple manufactures and distributes over 100 different assortments of nicotine cartridges, including disposables, including various iterations of CBD, Delta-8 and Kratom.
“It’s interesting,” Reed added. “When I got hired, I was told that there was an ‘expiration date,’ and we all knew that this industry might not last, and that the cream would rise (to the top). We planned to be one of those surviving companies, and we’ve been able to adapt to the times.”
Her company, along with many that are still around, were mostly run by rebels, radicals, and envelope pushers; and many have in fact changed accordingly, but some have merely learned how to “play the game” and outwardly appear to be toeing the line, but the reality may be different.
“We were aware that the COVID blip was a one-time event. People were home, they had government money to spend, and no one was checking in on them or requiring any urine tests. The Delta (8,10) boom really added to that, and everyone jumped on that bandwagon,” she said excitedly.
That line of CBD was an example of how the industry has and continues to push back. The FDA says you can’t do this, so the industry says, “F-you, then we’ll do that.”
With regulation eliminating or reducing product selection, almost any industry will do the same thing: adapt; repurpose, or reposition.
Of the dozens of people I spoke with at the event, the numbers (from shop owners and manufacturers) were pretty consistent, and most of them were down 20 to 30 percent. Many were saying that purchase sizes were lower than normal and a typical ten-thousand-dollar order was now half that. They saw some shops closing, but most were working on smaller revenues.
Manager J-K Thorne holds some of the flavored products that are no longer available at Wild Impulse vape shop. (Shane Hennessey/CBC)
Meanwhile, on the other side of the equation, vape liquid manufacturers who are trying to “play the game” right and submitting premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration are frustrated at the amount of time it takes and how much money is being thrown into a (seemingly) dark hole.
I spoke with one of the owners of a large vape manufacturing business and distribution company in Idaho, and he shared some facts and figures about their process of trying to make their products “legal.” Legal, in the eyes of the FDA, has caused his company to squander over $5 million in the past few years trying to get authorization.
Mike Larsen is a detailed and focused vape guy who has been in the industry for over a decade and is with Lotus Vaping Technology, which started in 2011. As a partner and director of sales, he is on the front line of everything the company does to stay legal and compliant and is riding the roller coaster ride on a daily basis.
“Disposables have really changed the game,” he said, “and they have reduced the role of vape shops where people used to come for education and guidance. Consolidations and closures have also reduced the shop numbers by 30 to 40 percent, and now you have larger conglomerates doing the work of the multitude of shops.”
We spoke about a possible flavor ban nationally, and he said he was skeptical.
“The PMTA process has already reduced or eliminated flavors, so it may not be necessary to go to that length. There have been between six and seven million submissions by thousands of companies, and so far, just 23 have been approved. I know of a few companies that submitted over a million applications themselves. And here’s the irony: everyone approved has been a Big Tobacco company, and they make up just a fraction of the total vaping market.”
The second irony on top of that, is that those so-called approved products are ones that no one wants.
We talked about whether those approvals were fair or were the result of favoritism and bias, and he smiled since we both knew the answer.
“When you look at the PMTA process and the rigid requirements, it seems pretty obvious that they were written to the advantage of the larger, established companies, and the “small guy” had very little chance in this skewed game. You can’t even budget for something like this,” he continued. “The original filing costs over a million dollars, and I know several companies that have put another ten million in, only to get denied. Who has deep pockets like that? In 2016 I could have named over 150 liquid companies doing good business; today I can name about three dozen.”
And that is why the number of companies manufacturing tobacco and vape products is half what it was and is getting smaller every year. The FDA changes the rules of the game continually.
“There’s something happening here, but what it is ain’t exactly clear,” is the beginning line of a song that speaks to changes going on in society. That song by Buffalo Springfield may have nothing to do with vape, but the message says the same thing: there is something happening here although it may be clearer than we realize. We all knew this would happen; it was predicted a decade ago.
In the vape space, the more things change…the more things change.
Norm Bour is the founder of VapeMentors and works with vape businesses worldwide. He can be reached at norm@VapeMentors.com.
The Scottish Grocers’ Federation (SGF) trade association has written to Scotland’s public health minister Jenni Minto MSP, following the Programme for Government announcement, which said restrictions on vaping in Scotland will be considered.
The SGF outlined a number of measures which it believes can reduce vaping among children, while also ensuring adult smokers looking to quit have access to alternative forms of nicotine, according to media reports.
It said packaging and naming of vape brands should be changed to make them less appealing to children, but said it opposes restrictions on flavor.
The SGF said flavor is shown to be the key factor which helps people switch from smoking to vaping – an alternative it argues is less harmful.
ALD has announced the market availability of FRESOR B8000 X1, a disposable vape that boasts a smart screen, 8000-puff capacity and customization options, according to an e-mailed press release.
The device is an extension of the company’s popular FRESOR disposable series, “setting new industry standards with its innovative digital display,” the release states.
“No more guessing about e-liquid levels. The smart screen provides real-time updates, preventing dry hits,” it states. “The smart screen provides instant access to battery status and recharging progress … The interface is designed for both seasoned vapers and newcomers, offering simplicity without sacrificing sophistication.”
Key features of the new device include:
Digital display screen that keeps track of e-liquid and battery levels;
Unique CMF design that offers a blend of elegance and innovation;
Smart dual mesh coil that provides consistent flavor throughout the devices lifespan;
OEM/ODM is also available that includes custom flavors, nicotine levels (0/1/2/5%), and branded packaging.
“The FRESOR B8000 X1 promises an elevated vaping experience. Its digital display, unique design, FRESOR MAX technology, and customization options cater to vapers worldwide,” the release states.
The U.S. Food and Drug Administration is continuing its crackdown on illegal disposable vape devices. The regulatory agency has issued warning letters to 189 retailers for selling unauthorized tobacco products, specifically Elf Bar and Esco Bars brands.
“The FDA is prepared to use all of its authorities to ensure these, and other illegal and youth-appealing products, stay out of the hands of kids,” said FDA Commissioner Robert M. Califf. “We are committed to a multipronged approach using regulation, compliance and enforcement action and education to protect our nation’s youth.”
The warning letters are the result of a nationwide retailer inspection blitz over the past several weeks cracking down on the sale of these unauthorized e-cigarettes.
The FDA continuously monitors the marketplace and took these actions as emerging marketplace data led to concerns over their appeal and risks to young people, according to an FDA release. More specifically, the agency’s ongoing surveillance efforts helped FDA identify Elf Bar and Esco Bars as being among the most popular brands in the United States and having high youth appeal.
“All players in the supply chain—including retailers—have a role in keeping illegal e-cigarettes off the shelves,” said Brian King, director of the FDA’s Center for Tobacco Products (CTP). “This latest blitz should be a wake-up call for retailers of Elf Bar and Esco Bars products nationwide. If they’re waiting for a personal invitation to comply with the law, they might just get it in the form of a warning letter or other action from the FDA.”
Last month, the FDA issued import alerts for all products under both the Elf Bar and Esco Bars brands. An import alert places these tobacco products on the red list, which makes them subject to Detention Without Physical Examination and allows the FDA to detain a product without physically examining it at the time of entry.
Elf Bar and Esco Bars products do not have the required marketing authorization from the FDA.
Retail associations have asked the U.S. Food and Drug Administration to provide them with list of e-cigarettes and vape products that are legal to market, reports NACS.
In October 2021, NACS and five other retail associations sent a letter to the FDA asking the agency to publish the names of vapor products for which it has taken action. In their letters to FDA, the associations expressed the critical nature of this list for their retail members who need to know which products are legal to sell and which are not.
The FDA formally responded in January 2022, stating that it understands the retail groups’ request for specific names of products and that the agency is working on updating the list with final actions taken on individual products, including those that received marketing denial orders (MDOs).
“Given the large number of products involved, sharing this information requires additional time and resources so that the Agency does not disclose confidential commercial information (CCI) about products that are not yet marketed,” stated the agency.
In a more recent letter to the FDA, the associations said they “can appreciate the immense task of reviewing millions of applications. However, there remains widespread confusion in the marketplace as to which products can remain on shelves and which need to be removed.”
“While Director Zeller encouraged retailers to contact manufacturers with any questions about products in their inventory, this is not an adequate or fair solution. It places the burden on retailers to verify the marketing status of ENDS and vape products with the manufacturers. Many of our members are small operators who do not have the resources or bandwidth to contact the manufacturers,” wrote the associations.
“Moreover, manufacturers providing a list does not guarantee accuracy or give the assurance that a verified list from the agency would give. These retailers stand to face enforcement if they are out of compliance with the law and the only way to ensure they can comply is if they have a verified list from the agency.”
Renewed support for a list of legal products come after the FDA issued warning letters to 30 retailers, including one distributor, for illegally selling unauthorized Puff Bar and Hyde disposable vaping products. The FDA typically sends warning letters to manufacturers, however, now retailers are facing stiffer scrutiny.
FDA Commissioner Robert Califf said cracking down on disposable products most used by youth is a priority for the regulatory agency. “We’re committed to holding all players in the supply chain – not just manufacturers but also retailers and distributors – accountable to the law,” he said.
A vape shop in Vladikavkaz, Russia in 2019. (Credit: irinabal18)
The withdrawal of European and American tobacco manufacturers and the gradual reduction of foreign e-cigarette brands doing business in Russia due to its war with Ukraine has allowed for the growth of Chinese e-cigarettes in Russia.
As Russia’s tobacco industry relies heavily on the support and investment of foreign brands, the withdrawal of international tobacco companies will cause a large shortage in the Russian tobacco market, which will lead to a sharp increase in the price of tobacco products sold in Russia, according to iGeekPhone.
By the end of 2021, there were more than 5,000 stores selling e-cigarettes in Russia, including more than 1,100 in the Moscow region.
According to real estate platform DNA REALTY, the number of tobacco shops in Russia grew by at least 20 percent in 2022, with the bulk of their profits coming from e-cigarette sales.
BAT announced it will withdraw from the Russian and Belarusian tobacco markets in 2023. Philip Morris International (PMI) and its subsidiary Fimo International, are also considering retaining their business in Russia because Russia is the seventh-largest tobacco market for PMI.
Japan Tobacco suspended investments in Russia and Imperial Brands transferred its Russian operations to a successor in Russia.
“E-cigarettes have great potential as alternatives to the tobacco market in Russia, where e-cigarette consumers account for 6.8 percent of the total number of smokers,” the article states. “After the United States and Europe, Russia is the world’s third-largest importer of electronic nicotine delivery systems (ENDS).
“China accounts for 90 percent of the global market. In 2021, China’s exports to Russia reached 82.5 billion rubles. This year it could increase by 35 percent to 111 billion rubles.”
Media outlets are reporting that BAT sent vaping wholesalers testing results that claim that nearly all major disposable vaping brands in the UK not produced by a major tobacco manufacturer contain illegal volumes of e-liquid.
Senior wholesaler sources leaked nearly 50 pages of BAT product testing data to betterRetailing, along with a letter from BAT urging wholesalers to stop selling products it claims are failing to comply with the 2ml e-liquid limit. A distributor of many of the brands named denied the claims.
In a letter sent to wholesalers by BAT UK managing director Fredrik Svensson, seen by betterRetailing, the supplier said it had commissioned “independently accredited laboratory” testing on Elf Bar 600 products purchased from supermarkets and independent retailers between 6 September 2021 and 7 March 2023.
The evidence revealed that the tested products “contained significantly more than the legal limit of 2ml of nicotine-containing e-liquid from 2.76ml to 3.88ml, with an average overfill of 58 percent.”
Testing was also conducted at the same lab on Lost Mary, Found Mary, IVG Bar, Klik Klak, SKE Crystal, Smok Mbar Pro and Solo disposable vapes. Test results for all these brands showed illegal levels of e-liquid.
Together, the brands account for nearly all disposable vaping sales in independent shops by both revenue and volume.
BAT’s letter urged: “As a responsible trading partner, we trust that you are taking appropriate steps to ensure that you are not supplying non-compliant products and that you will be urgently reviewing the supply of any products you stock, particularly those which our testing demonstrates do not comply with the TRPR [The Tobacco and Related Products Regulations 2016].”
Elfbar voluntarily pulled its products from UK shelves after finding its products did not meet legal requirements.
Recently, another Elfbar brand was pulled from UK store shelves after finding the products surpassed the legal limit for e-liquid volumes.
VPZ says it plans to have opened 20 additional stores by the end of the year as its expansion plans continue.
The Scottish vaping group’s director Doug Mutter is calling on the U.K. Government to follow the lead of New Zealand and increase regulation of the vaping market.
Edinburgh-headquartered VPZ plans to grow to 170 stores by the end of the year, according to insider.co.UK.
The chain has this year already opened stores in Hexham, Sheffield, Nottingham, Derby and Newquay.
It says Falkirk and seven “major shopping center sites” are going through the acquisition process and that further growth is planned in the North East of England and Yorkshire.
Mutter also called for tighter controls and licensing for selling vaping products.
“At VPZ, we are firmly focused on helping adult smokers quit and have helped over 700,000 people quit smoking since we were established in 2012,” he said.
BAT Rothmans has released the Glo Hyper X2 heat-not-burn device to the South Korean market, reports The Korea Times.
“Glo Hyper X2 is a next-generation e-cigarette device that will lead the BAT Group’s smoke-free product business,” said Kim Eun-ji, BAT Rothmans’ country manager for South Korea. “We have not only increased the users’ convenience of the platform but also improved its design and portability.”
Glo Hyper X2 device adopts more slim design than its previous Glo series models, while allowing to smoke tobacco sticks that contain 30 percent more tobacco content.
It is the first platform to offer two separate “boost mode” and “standard mode” buttons. Users can choose the former to smoke quickly after 15 seconds of preheating or the latter to preheat 20 seconds and smoke non-stop for four minutes.
The new device also adopts a shutter system to protect from dust and foreign substances. There are LED indicators to show the remaining battery power and preheating status.
