Tag: Shop Talk

  • Unintended Consequences

    Unintended Consequences

    The number of crimes committed at specialty retail outlets has grown dramatically over the past few years.

    By Timothy S. Donahue

    Every year, hundreds if not thousands of cannabis dispensaries, vape shops and tobacco outlets are robbed or burglarized in the U.S. On July 10, in Lincoln, Nebraska, between 2 a.m. and 5 a.m., the police department responded to alarms at two vape shops where officers found shattered storefront glass at both locations. The thieves targeted CBD (cannabidiol) and Delta-8 THC (tetrahydrocannabinol) products. The pair of break-ins happened two days after another similar burglary, totaling three in as many days. The businesses lost tens of thousands of dollars in merchandise.

    Timothy Goodman, a manager at the Lincoln Vapor location, said that break-in was just the latest in a string of six incidents in approximately the last two years, according to news reports. Goodman, who has worked at Lincoln Vapor for nearly four years, said it’s his understanding that every break-in can be linked back to the same group.

    The burglars stole $2,000–$3,000 worth of merchandise in May 2021 and have lifted around $16,000 in products from the business through the last year and a half, according to Goodman. Most products were hardware and cannabis products, such as CBD and Delta-8 THC. “It’s frustrating beyond belief,” he said. “I wake up most nights in the middle of the night and check the cameras to make sure nobody got in.”

    The rise in vape shop crimes may be an unintended consequence of recent regulatory actions, such as tax increases, flavor bans and raising the age to purchase vaping and tobacco products to 21, according to many industry experts. Richard Marianos, a senior law enforcement consultant who has served more than 27 years at the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and who is now a consultant and adjunct lecturer at Georgetown University, says crime is often an unintended and overlooked consequence of regulatory constraints on the marketplace that encourage the growth of black markets.

    Credit: Lexington Police Dept.

    Marianos said that taxes and flavor bans bring prohibition, and prohibition brings crime. “These regulatory actions mean a dramatic increase in street sales to kids, and that is what we have seen all over the United States,” said Marianos. “If you have any form of tobacco harm reduction in your state, just throw that completely out the window [if you are going to implement flavor bans and raise taxes exorbitantly] because it forces young adults and people who can’t afford these products into a growing black market. In terms of law enforcement, the issue is that there has been 150 percent increase in smash-and-grabs because of the difficulty of purchasing these products.”

    Sam Salaymeh, president and CEO of AMV Holdings, parent to a chain of 113 Kure CBD & Vape shops across the U.S., said that his stores have seen a major increase in crime over the past two years. During Covid-19 lockdowns in 2020 through early 2021, AMV stores had over 20 burglaries combined. “There is a myriad of stories that come with these break-ins, but the main theme is criminals are trying to get to high-value items that are small in size—and that would be the CBD/cannabis products … etc.,” explains Salaymeh. “This is happening more and more across the country.”

    Credit: Manatee County Sheriffs Office

    During a one-hour period on Dec. 20, five separate retail locations—three vape shops and two tobacco/vape outlets—suffered a string of robberies by three men wearing masks that crossed the Southeast region of Los Angeles County. A shop owner said the criminals pretended to be customers when one pulled a gun and demanded money while two others snatched merchandise from the store’s shelves, according to news reports.

    Credit: UK Vapers

    “We now have organized crews that go out and hit multiple stores like convenience stores, gas stations, vape shops in a single night or a weekend … they don’t go for cash registers; they want the tobacco products because they can sell it on the street cheaper than what it’s being sold for with these high taxes and these prohibitions,” says Marianos. “They’re making a fortune in the black market the same way the dope dealers are selling cocaine and heroin because the taxes on vaping and tobacco products are going through the roof.”

    Crimes of convenience 

    In 2020, there were 102,677 robbery incidents and 102,677 offenses reported in the U.S. by 9,991 law enforcement agencies that submitted National Incident-Based Reporting System (NIBRS) data. Nearly 25 percent of those incidents were committed at convenience stores (13,721), gas stations (7,006) and specialty stores, where vape shops are lumped into (5,372) combined. If criminals are looking for quick cash, then robbing convenience stores or small specialty retail shops is one of the best ways to do it, according to the FBI.

    John Cavanaugh, owner of California-based Vaping Industries, says that thieves have broken into his stores numerous times. Typically, thieves try to take what’s immediately available. “They broke in after hours … broke the glass, popped open the register, grabbed the cash, broke into my office, got the petty cash and then rolled out,” he said. “I think we are starting to see more robberies than burglaries lately, and I think that it’s an easier target to hit a vape shop or a smoke shop with guns because the layout is small, there’s only typically one or two employees and—especially with cannabis dispensaries—there’s a lot of cash on hand.”

    Burglary
    Robbery

     

    The terms “burglary” and “robbery” are not interchangeable.

    They have meaningful differences.

    Burglary involves a person illegally entering a building to commit a crime while inside.

    Robbery is typically when someone takes something of value directly from another person using force or fear.

    There is a far greater chance that someone committing a robbery will do so armed compared to burglaries, which typically occur after hours.

    Convenience stores accounted for nearly 13 percent of all violent crimes suffered in 2020, and gas stations accounted for about 12 percent.

    Across North America, crimes involving vapor, tobacco or cannabis shops are getting more violent. On Dec. 3, in Calgary, Canada, officials said a “number of people” entered Jerry’s Smoke and Vape just after 6:30 p.m. According to a police report, one of the suspects pointed a gun at the clerk, and the bandits made off with cash and merchandise.

    On Sept. 12, in British Columbia, a suspect entered a vape shop alone armed with a shotgun. After threatening an employee, the suspect took an undisclosed amount of cash and product before escaping on foot. Over the weekend of May 29 to June 1, 2020, thieves burglarized several cannabis dispensaries, distribution centers and cultivation in Los Angeles, Oakland, San Francisco and other cities, stealing legal commercial cannabis products and cash. On Sept. 11, 2021, in Calgary, Canada, three masked men entered a dispensary armed, held off staff and got away with a quantity of cannabis products.

    Cavanaugh said robberies are more common at cannabis dispensaries than vape shops because cannabis dispensaries have a lot of cash on hand, especially in the U.S. where very few banks will work with marijuana businesses. There are also numerous illegal cannabis dispensaries, which perpetrators know are less likely to notify law enforcement.

    “Before all of this started happening over the last few years, I didn’t really believe in upping my security. Now, I have to make sure that there are panic buttons, that my staff are properly trained for when somebody comes in with guns blazing,” he says. “They need to know to just give it all up. Give them the cash and whatever they want. It’s OK. It isn’t worth your life. I’m also now spending extra money for high-end security cameras and security systems. It’s frustrating.”

    Crime prevention

    According to Marianos, there are several reasons why thieves target convenience stores and gas stations and now vape shops and dispensaries: operating hours and low numbers of staff on site, and these types of stores have smaller layouts, so it’s easier to find the expensive/high demand products and there is the potential for large amounts of cash on-site.

    “You don’t want it to make product accessible where somebody can just take a trash can, throw it through the window and get into your shop and take all your stuff,” says Marianos. “More cameras, limiting the amount of people that are coming in like they do at jewelry stores—these businesses need a similar model that retailers with high-end products have. In some higher crime areas, you may even have to hire a security guard.”

    Vandalism, from smash-and-grab types of crimes, has occurred so often at AMV stores in recent years that Salaymeh says he has a toolkit in his garage ready to go at a moment’s notice with everything needed to board up a store. He says he involuntarily became an expert at it. Salaymeh says that while it is rare for AMV stores to alter operating hours, it is a tactic they have used in the past. He says that having at least two staff members at all times in some locations, installing security cameras and other security measures are the primary tools store owners have in their arsenal to help deter crime.

    “Security cameras help us at least get the story behind what happened and potentially pictures of the thieves. We also try to limit the access potential thieves have to valuable product … and we’ve tried to keep the lights on after hours so that people can actually see that these products aren’t lying around or in display cases,” he says. “We leave the register drawer open so that people, when they walk up, they see there’s no cash.”

    Another unintended consequence of overzealous taxation and regulation is the impact it has on local law enforcement, according to Marianos. He says enacting some of these rules are, in effect, giving police more work to do in terms of harassment violations that have no teeth instead of fighting real crime.

    “Instead of being able to work on what they should be working on—to serve and protect—are we going to be calling the police because someone is vaping a flavor?” he asks. “What is law enforcement going to do with all this nonsense? What are they going to charge the guy with? What is the crime? Do you know what I mean? It becomes an hour and a half just sitting around trying to figure out what we’re going to do here.”

    During his interview with Vapor Voice, Salaymeh’s phone rang. It was the security firm ADT. One of the Kure stores had an alarm going off. He said it happens multiple times a week. There is insurance available for specialty shops, but both Cavanaugh and Salaymeh say it is expensive. The deductible is often higher than the amount of damage suffered during a crime. Both say they rarely, if ever, claim any damages with their insurance companies.

    Credit: Tulsa Police

    Another overlooked result of rising crimes in these specialty sectors is the impact on the economy and the lives of employees. Cavanaugh said that crime has forced him to shutter two stores, and he now struggles to keep the doors open in his remaining location. Increases in crime, overregulation and misinformation concerning the health and safety of vaping, and the causes (illegal THC vaping products) of e-cigarette or vaping use-associated lung injury have been too much to bear.

    “We are doing our best to deal with the reality of today’s vaping industry,” Cavanaugh said. “I want to keep my doors open, and people depend on us; that’s important.”

    Salaymeh says he had to close some stores during the Covid-19 pandemic, some of which were temporary. The closures weren’t all crime-related, he explains, but most of them were. There was a period when stores were not allowed to be open, so burglaries were happening, and stores couldn’t sell anything to try to recover losses. “We’re trying to keep people employed. The height of the pandemic was a very, very, very difficult time for our company and many companies like us. The primary victims of these senseless crimes are the people who don’t have a job to go back to because I shut down 18 stores during that time,” he says. “Think about that.” 

  • Mike Huml Picks 2021’s Best Hardware Products

    Mike Huml Picks 2021’s Best Hardware Products

    Credit: Steam Crave

    There were numerous innovations introduced in the hardware segment last year.

    By Mike Huml

    The year is finally over, and 2021 was a rough one. Not just in terms of the vapor industry but for everybody the world over. After a year like that, it’s important to look back and appreciate the successes and accomplishments despite the challenges faced. In particular, the vapor industry has had to bear the burden of federal and state regulations, supply issues, shipping delays and much more. However, even with these new obstacles and the continued plateauing of new vapor technologies, consumers have mostly still been able to access a wide range of quality vaping products thanks to the hard work of advocates and business owners alike.

    Now, new opportunities for the future arise. Hurdles and challenges inevitably await, but the vapor industry always weathers the storm. There will always be successes and failures, wins and losses, but at the end of the day, it’s important to reflect upon how far vaping has come in such a short time and remember how human innovation transformed the simplest of circuits—a battery and a resistor—into a life-saving product that changed the world of harm reduction.

    Here are my selections for the best vaping products of 2021:

    Best Pod System: The Caliburn G2—UWell

    The Caliburn series of pod systems from UWell has long been a favorite not only for pod vapers but vapers of all levels. Whether as a daily driver or as a backup or portable alternative, the Caliburn has earned a reputation for being a simple, no-hassle device with easy vapor production, accurate flavor reproduction and a killer analog-accurate throat hit. In 2021, UWell released their follow-up to the popular Caliburn G—the Caliburn G2. The Caliburn G2 features all the things vapers have come to love about the Caliburn G plus a few extras to further improve the experience.

    The Caliburn G2 has a larger 750 mAh battery compared to its predecessor’s 690 mAh battery. While this doesn’t provide a huge boost to battery life, any improvement is welcome, especially when it doesn’t translate into a larger device—the Caliburn G2 is virtually the same size as the Caliburn G. Both devices use a USB-C charger for blazing fast charging, and both devices can be charged from empty to full in less than an hour.

    The Caliburn G2 also has a larger window for viewing remaining e-liquid, which is ironically made unnecessary due to the innovative haptic feedback system. When a pod runs empty and the user attempts to take a drag, the Caliburn G vibrates to indicate that a fill is needed. Of course, the larger window is still a welcome upgrade that doesn’t detract from any other features. Additionally, each pod now has an airflow adjustment ring on the bottom to allow for a wider range of airflow settings rather than the two fixed options available with the Caliburn G.

    The Caliburn G2 continues to use mesh technology in the coils for a quick ramp-up time, more even heating and improved flavor. Many pod systems have trouble wicking too fast or too slow, leading to either weak vapor production or spitback and leaking. The Caliburn G2 does not have these issues whatsoever, and that factors into the user experience in a huge way. Ease of use, excellent performance and new refined features all contribute toward the Caliburn G2’s title as the best pod system of 2021.

    Best Starter Kit: Aegis Mini2 and Solo2—Geekvape

    These two kits share their accolade of best starter kit because they are virtually identical in terms of what’s included and performance. Aside from a few aesthetic differences, what sets these mods apart from each other are the batteries. The Mini2 features an internal battery while the Solo2 requires an 18650. That being said, with the advent of pod systems and their dominance over the beginner vaping market, the term “starter kit” has evolved to mean a bundle of products that includes all the necessary hardware to get started with a new setup rather than simply a kit for new users.

    Geekvape has always provided some of the best value when it comes to the intermediate to advanced market, providing hardy and simple devices with a good range of features at a reasonable price point. The Mini2 and Solo2 kits take Geekvape’s well-loved Aegis aesthetic and apply it to a 100 W mod then add in the Geekvape Z subohm tank for a perfect introduction into subohm vaping and cloud chasing.

    These kits naturally come with extra tools and parts as well as a spare replacement coil, but the main attraction of any intermediate kit is the promise that it can provide something that a user can’t find in a pod system. Whether that’s a full day’s battery life, massive clouds of vapor, more customization of the vape experience or an easier way to taper down nicotine levels, many starter kits attempt to provide these features with varying degrees of success.

    Geekvape’s Mini2 and Solo2 can provide all these things with minimal hassle and under $60. The mods themselves are water resistant and dustproof with excellent shock protection in case they’re dropped on the ground. While the Solo2 requires an 18650, both devices can be charged with an included USB-C cable. The menu is simple enough to not incur frustration while also serving to introduce users to the common three-button system.

    The Geekvape Z tank uses top adjustable airflow, rendering it virtually leak proof. It’s also top-filling and performs almost at the level of any rebuildable worth its salt while providing 5.5 mL of juice capacity. Replacement coils are available in two varieties and are readily available from a multitude of vape shops and online retailers.

    There is no single aspect of the Aegis Mini2 or Solo2 that can be singled out as their defining feature. Rather, both kits do everything very well, and that should be the goal of any starter kit. They provide a well-rounded experience that balances features and simplicity, power and size, quality and price point. For anyone wanting to take the next step in vaping, the Aegis Solo2 and Mini2 are the best starter kits of 2021.

    Best Rebuildable: Steam Crave Aromamizer Series

    Rebuildable atomizers, once the gold standard of vaping quality, have humbly been taking a back seat for the past few years. While simpler and more broadly desired devices have stolen the spotlight, the hobbyist vaper niche market still exists backstage. Any “best of” claim will be disputed by the passionate vaper—each has their own hands-down favorite, and nothing can convince them otherwise. However, when taking everything into account from performance and quality to price and availability, the Aromamizer series of atomizers from Steam Crave stands apart from the rest.

    First, the Aromamizer series consists of four different atomizers that range in size from 25 mm to 41 mm in diameter. This means the majority of vapers will be able to find an Aromamizer that perfectly suits their favorite mod. Many varieties are capable of sharing spare parts and build decks, which makes it easy to try new builds without the need for multiple RBAs. Additionally, each Aromamizer can function as either a tank or a dripper. The level of customization is unprecedented.

    Next, the Aromamizer is built to the highest quality standards and performs as well as, if not better than, atomizers at twice the price. Steam Crave is the only notable manufacturer that bridges the gap between the notorious $20 clone and the $200 authentic. Depending on which Aromamizer is chosen, the price hovers between $40 for the 25 mm Supreme V3 and $75 for the 41 mm Titan V2. The Aromamizer design is original to Steam Crave and packs all sorts of features into a single package.

    In addition to interchangeable build decks, the Aromamizers are top-filling with juice flow control and a wide range of airflow options. Being an RDTA, each deck is built like an RDA rather than many dedicated RTAs that wick completely differently than RDAs and therefore are designed with more restrictive decks.

    The latest series of Aromamizers have undergone years of refinement and it definitely shows. Quality and performance aren’t even a question for these RDTAs. But the icing on the cake is price and availability. Many high-end rebuildables are produced at a small scale and can be prohibitively expensive, and because of this, few vendors are willing to risk carrying large quantities of these atomizers for a niche market. It’s too much risk for not enough return, and that can make finding quality rebuildables difficult, even if a vaper is willing to pay a premium.

    So, with that in mind, the Aromamizer series is the best rebuildable of 2021 due to its high quality, perfect performance, level of customization, price point and general availability.

    Best Mod: Hyperion DNA 100C—Lost Vape

    Lost Vape is another longstanding company that breaks from the norm. In a nutshell, this manufacturer is responsible for getting the most mods utilizing Evolv’s DNA boards into the hands of vapers for years. While other companies were copying Evolv’s technology—whether it be variable wattage, regulated subohm vaping or temperature control—Lost Vape simply went to the source and put DNA boards into high-quality mods at reasonable prices. The Hyperion DNA 100C continues this trend, and as a result, Lost Vape has produced the best all-around mod to date.

    The list of features provided by a DNA board is extensive and too long to reproduce here. Evolv has been at the forefront of vaping technology for over a decade, so in general, it’s safe to assume that any feature found on a mod today was pioneered by Evolv. They did it first and probably did it best. Consequently, the Hyperion is a full-featured device with variable wattage, temperature control and the entire gamut of DNA features. That plays a huge role, but it’s not the whole story.

    To put it too simply, the Hyperion is a Geekvape Aegis Solo with the quality bumped up a notch and the inclusion of a DNA board. The C-frame design is hugely popular and functional, allowing for a great asymmetric aesthetic that’s comfortable to hold and allows an infinite number of customization options for the “soft” side. The Hyperion is available with different colors and materials, including carbon fiber, leather and vinyl.

    The Hyperion is also extremely durable, being water resistant, dustproof and shock resistant. It can be powered by a single 18650, 20700 or 21700 battery for maximum battery life and can output up to 100 W of power—more than enough for the general vaping population. The battery can be swapped and charged or charged internally via the USB-C port, which is also used to connect to a PC for firmware updates or to play around with Evolv’s EScribe software.

    Sure, other mods can fire up to 200 W or higher, but for someone looking for a top-of-the-line device that can do it all—and do it modestly—the Hyperion can’t be beaten. It’s the result of years of refinement by Lost Vape that takes a popular and functional design that’s crafted to the highest quality standards and couples it with the best internals on the market in the form of the DNA 100C for a final product that’s a modest size with respectable power that could very well last a lifetime. The Hyperion DNA 100C from Lost Vape is the best overall mod of 2021.

    Best Advanced Mod: Hadron Pro—Steam Crave

    At some point, everybody wants to splurge. Every human eventually wants something out of the ordinary, something bombastic that could very well be overkill, price and practicality be damned. That mid-life crisis of a vaping device is the Hadron Pro from Steam Crave.

    This device certainly has its negatives, from a certain perspective. It’s huge, it’s plain and some assembly is required. However, it uses a DNA 250C board with a 4C LiPo for maximum battery life and a potential 400 W of power. It’s huge for a reason, and that’s the battery that can last for a long while when used at reasonable power levels. Coincidentally, it also gives an excuse to purchase the 35 mm Aromamizer Ragnar, which pairs perfectly with the Hadron Pro.

    Most of what makes the Hadron Pro so great is admittedly the DNA 250C. And while the design is plain, plain can be a good thing when the asking price is approaching $200—the last thing a device that expensive needs is an extreme, polarizing aesthetic. And that large battery previously mentioned? The reason it needs to be installed by the end user is that it is replaceable. Again, a great feature when it comes to an expensive device, as a dead battery isn’t the end of the line for the Hadron Pro. While using four 21700 batteries might seem a better idea to achieve the same effect, the size of such a mod would not only be impractical but unusable.

    None of this is to say that the Hadron Pro is gimmicky—far from it. Every feature provided by the DNA 250C is here, and although the size is a bit unwieldy, it makes for a perfect coffee table mod, and there’s technically nothing that keeps a vaper from bringing the Hadron Pro out and about, provided they have big enough pockets and don’t mind the extra weight.

    For advanced vapers where the pros always outweigh the cons, and impracticality always yields to superior performance, there is no better option: The Hadron Pro is the best advanced mod of 2021.

  • Retail Group Launches Guide to Help U.K. Vapor Sellers

    Retail Group Launches Guide to Help U.K. Vapor Sellers

    The Association of Convenience Stores (ACS), a U.K.-based retailers group with more than 33,500 members, has launched a new guide to help retailers with the sale and supply of e-cigarettes and other vaping products.

    The guide, which is part of a wider group of Assured Advice guides, covers the regulations that govern the sale and supply of e-cigarettes, retailers’ responsibilities when selling these products, how to ensure packaging and labelling are compliant with the regulations, and advice on how to make sure underage sales do not take place.

    Within the guide, ACS recommends retailers use the Challenge25 policy when selling e-cigarettes and vaping products. Challenge 25 is a retailing strategy that encourages anyone who is over 18 but looks under 25 to carry acceptable ID.

    As part of an update to Challenge25 materials launched in January, there are new posters, badges and other downloadable materials which refer specifically to e-cigarettes. The new guide is available to download from the ACS website. The Assured Advice guides have the backing of Surrey and Buckinghamshire trading standards departments.

  • Korea: E-Cigs Gain Ground as Combustibles Stagnate

    Korea: E-Cigs Gain Ground as Combustibles Stagnate

    Photo: Dzmitry

    Sales of cigarettes in South Korea were flat from 2020 to 2021 but demand for electronic cigarettes rose amid the protracted pandemic, reports the Yonhap News Agency, citing data from the finance ministry.

    South Korean smokers purchased 3.59 billion 20-cigarette packs in 2021, similar to the number logged the previous year, according to the Ministry of Economy and Finance.

    Sales of traditional cigarettes fell 2 percent on-year to 3.15 billion packs last year, while those of heat-not-burn tobacco products rose 17.1 percent to 440 million packs.

    Compared with 2014, however, cigarette sales declined 17.7 percent last year—a development the government attributed to rising prices and anti-smoking campaigns.

    In January 2015, South Korea increased cigarette prices by 80 percent to KRW4,500 ($3.72). The next year, the government required tobacco companies to print graphic images depicting the harmful effects of smoking on the upper part of cigarette packs.

    As of 2020, the smoking rate among Korean men aged 19 or older dropped to a record low of 34 percent, down 1.7 percentage points from a year earlier, according to the health ministry.

  • UK Retailers Being Warned About Illegal E-Cigarettes

    UK Retailers Being Warned About Illegal E-Cigarettes

    The UK government officials are warning e-cigarette and vaping retailers after trading officers discover a large number of illegal products. Vaping devices are highly regulated by the government to control the amount of nicotine available and have to be approved by the Medicines and Healthcare Regulatory Agency (MHRA).

    “They should contain no more than 2 per cent nicotine or hold more than two mL of liquid, equivalent to 600 puffs or a packet of cigarettes, according to a news report. “However, in a recent test purchasing exercise across the city to check on compliance, officers were able to buy illegal products at 74 retailers – some containing up to 3,500 puffs, almost six times above the legal limit.”

    Officials are now offering retailers the opportunity to contact Trading Standards for advice on their products with the proviso that compliance visits will be carried out in the New Year and any illegal products still on sale will be seized. The council have also been receiving a large number of complaints over the sale of these products to children and is asking parents with information and evidence to contact them.

    More information and an online form is available at https://liverpool.gov.uk/business/trading-standards/alcohol-and-tobacco-illegal-trading/ or you can email trading.standards@liverpool.gov.uk

  • Vapor Industry Sales on Upswing From 2020 Declines

    Vapor Industry Sales on Upswing From 2020 Declines

    The vapor industry has experienced growth after Covid-19 lockdowns sent many back to cigarettes.

    By Timothy S. Donahue

    After declines in 2019 and 2020, the vapor industry has grown 10-15 percent in 2021. Don Burke, senior vice president of Management Science Associates, speaking on a panel during the first day of TMA’s “From Chance to Change” webinar on No. 17, said that he expects the industry to continue its growth into 2022.

    “Vapor cartridges were up by 18.5 percent. Over … 2019 going into 2020, we were seeing some declines in vapor. One of the things to keep in mind is at the end of 2019 was that illegal THC vaping [EVALI] crisis,” said Burke. “That turned a lot of people off of vapor, even though it was only an illegal product that caused the issues. No legitimate product caused any problems. It’s about a year-and-a-half now since that occurred … because of that, consumers are starting to forget, vapor is coming back.”

    Burke said disposables, because they’re allowed to have flavors, were up 28.9 percent and all-in-one kit volumes are growing (up 2.9 percent). He said vape shop and tobacco outlet sales are also on the rise after many closed or limited hours due to the Covid pandemic. He said his research includes approximately 300,000 stores. It does not include vape shop sales.

    “We’re looking at distributor to shipment retail data. In many cases, that’s important because a lot of the convenience stores and some tobacco outlets do not collect their data and, therefore it’s very difficult to get a clean read,” he said. “The convenience channel – because they were considered essential businesses in most parts of the US – managed to survive the pandemic and in fact, now are a larger percentage of stores in the US. Also, 71 percent of tobacco volume goes through convenience stores.”

    Burke said pods for closed-pod systems (cartridges) are up 6 percent in the most recent quarter. He said that during the third quarter of 2021 disposables continue to have strong sales, rising by 21 percent and he expects those trends to continue. E-liquid distribution fell by 49.6 percent through 2020 and into current 2021 and sales fell nearly 15 percent, mostly due to recent regulatory action in the US.

    Burke also said cannabis sales grew significantly during 2020 and into 2021, but he didn’t elaborate.

    For more on this session from TMA 2021 read the next issue of Vapor Voice coming in mid-December.

  • Tobacco Bill Would Tax Vapor Same as Combustibles

    Tobacco Bill Would Tax Vapor Same as Combustibles

    The proposed U.S. Tobacco Tax Equity (TTE) Act would tax vaping products the same as combustible cigarettes. According to research from the Tax Foundation, an independent tax policy nonprofit, the proposal would double the rates on combustible cigarettes and increase the rates on all other tobacco and nicotine products – including electronic nicotine-delivery systems (ENDS) – to achieve parity with the traditional tobacco tax rate.

    Credit: TS Donahue

    The proposed rule aims for the tax per 1,000 cigarettes to be increased to $100.66. Vaping products would be taxed at this same rate, with 1,000 cigarettes being equal to 1,810 milligrams of nicotine.

    “In addition to the one-time increase, the rates would be indexed to inflation, which means they would automatically increase every year,” the report states. “According to Tax Foundation estimates, the tax increases would raise $112 billion over 10 years. The bulk of the revenue, $74.8 billion, is from the doubling of cigarette taxes. The tax on vapor products would raise roughly $15 billion over 10 years.”

    According to Alex Norcia of Filter, the proposal would benefit large corporations and traditional tobacco products, while unfairly hurting people in lower socioeconomic classes as most smokers do not typically belong to the upper classes. Current cigarette smoking in the United States “is higher among people with low annual household income than those with higher annual household incomes,” according to the Centers for Disease Control and Prevention.

    “This means that a 30-milliliter bottle of e-liquid containing 3 milligrams of nicotine per milliliter would be subject a tax rate of $5 for the bottle. A 120-milliliter bottle of e-liquid that contains 6 milligrams of nicotine per milliliter would attract a tax rate of $40 for the bottle,” writes Norcia. “In comparison, critics and tax reformists have estimated that a four-pack of Juul pods would be taxed around $9—giving a clear advantage to a giant over the smaller player. More alarmingly, a pack of cigarettes would only be taxed around $2, creating an incentive for nicotine users to pick cigarettes over less-risky vapor products.”

    Credit: Tax Foundation

    The TTE Act as part a massive $3.5 trillion spending bill appear to be heading for a collision with President Joe Biden’s pledge not to raise taxes on America’s middle class. In an interview with C-Span on Sept. 15, White House Press Secretary Jen Psaki was asked if the White House believes that the proposed bill on taxing tobacco/vaping products would violate Biden’s promise to not raise taxes on those making under $400,000 per year. She replied, “No, we don’t,” adding that it was “just one of the ideas out there.”

    Vape Shop owners are saying that the proposed tax increase would “completely destroy” their businesses, saying it would be even worse than the U.S. Food and Drug Administration’s failure to approve any ENDS products by the Sept. 9 deadline and the issuing of nearly 200 marketing denial orders (MDOs).

    “This is going to more than double, and in some cases triple or quadruple, the price of liquids that I sell,” says Keith Gossett, the owner of Bucky’s Vape Shop in Columbus, Georgia, told Reason. “I’m going to sit there and try to tell a man with a $6 pack of cigarettes that my [$75] product is better. This tax will close my shop.”

    The last time the federal excise tax on tobacco was increased was in 2009. While the federal tax has not changed for 12 years, the average tax paid by consumers has increased drastically. Including the last federal increase, the average combined state and federal excise tax rate on tobacco products has jumped more than 80 percent (the average state excise tax rate increased 65 percent between 2009 and 2021), according to Tax Foundation.

  • Supreme’s 88Vape Sales Jump 36 Percent Amid Lockdown

    Supreme’s 88Vape Sales Jump 36 Percent Amid Lockdown

    The parent company behind the 88Vape brand, Supreme, announced revenues rose 36 percent as U.K. smokers attempted to quit smoking combustible cigarettes during Covid-19 lockdowns. The company’s total revenue was up 33 per cent at £122.3 million ($166 million) as of March 31, 2021. This is up from £92.3 million in same period of 2020.

    Gross profits jumped to £33 million, which helped the company to slash its debt by 64 percent, ending the financial year with a just £7.6 million burden compared with £21.3 million in 2020, according to City A.M. The strongest sales growth was found in vaping and its sports nutrition and wellness branch, the company said in a statement.

    Supreme’s partnership with convenience store chain McColl’s to supply shops with vaping products marked the company’s growth in the vaping sphere. The rollout of 88Vape products was completed in March 2021, adding an additional 1,180 retail convenience stores nationwide to Supreme’s portfolio.

    “There are clear and very exciting opportunities that exist for our business, particularly in categories like sports nutrition and wellness and vaping, and I look forward to providing further updates in due course as we capitalise on these,” Supreme CEO Sandy Chadha said. “We have made a good start to the current financial year and look to the future with confidence.”

  • Georgia Cops Cracking Down on Delta-8 Sales

    Georgia Cops Cracking Down on Delta-8 Sales

    A central Georgia vape shop is the latest business to be raided by authorities in relation to the sale of delta-8 THC products . Two store employees were charged as part of the crackdown. The proliferation of delta-8-THC products being sold outside dispensaries has prompted a patchwork of enforcement reactions and crackdowns in states with varied policies on cannabis, from South Carolina to Oregon.

    Credit: Fotokitas

    The Newnan Times-Herald reports that Coweta County authorities were tipped off that the store called Tobacco & Vapor was illegally selling THC products. An undercover officer bought gummies from the store that failed THC testing. A search warrant was later executed and authorities seized 554 suspected delta-8-THC edibles and 616 suspected delta-8-THC products other than edibles.

    Two of the store’s employees were charged with drug crimes including narcotics possession. Delta-8-THC is a molecule that exists rarely in the cannabis plant but can be easily synthesized from cannabinoids extracted from legal hemp, prompting confusion over its legality. Delta-8 is not specifically banned in Georgia. Delta-8 will also provide a positive result in testing as current tests used by law enforcement cannot differentiate between delta-8-THC and delta-9-THC (which is illegal federally and in Georgia).

    While hemp itself is federally legal (at or less than 0.3 percent THC), each state has different laws and restrictions regarding byproducts derived from hemp, including Delta-8. No products containing Delta-8 have been tested by the U.S. Food and Drug Administration or are FDA-approved. The 2018 Farm Bill, which legalized hemp and its byproducts, explicitly excluded delta-9-THC, also known as simply THC, the compound that produces the typical marijuana “high.” But because of the bill’s loophole, delta-8 seemingly remains legal.

    Twelve states have completely banned delta-8 sales specifically. Those states include Alaska, Arkansas, Arizona, Colorado, Delaware, Kentucky, Idaho, Iowa, Mississippi, Montana, Rhode Island and Utah. New York has a proposed rule to ban Delta-8 products, which is under a comment period until July 19. California, Oregon, Vermont and Washington are in the process of enacting regulations for delta-8 products. Several other states are also considering bans. Florida’s language concerning delta-8, however, allows for the legal sale of delta-8 in that state.

    In order to prosecute a business or individual for selling or possessing delta-8 products, the government has to prove that you knowingly possessed or distributed a schedule I controlled substance, specifically THC or marijuana. Georgia officials have been cracking down on delta-8 sales over the last year. In May, local law enforcement in the metro-Atlanta area executed search warrants at several stores and a warehouse belonging to a small business owner who operates a chain of vape shops. Police seized several products that allegedly contain delta-8.

  • Despite Regulatory Challenges, Vapor Retail Rises

    Despite Regulatory Challenges, Vapor Retail Rises

    Regulatory challenges have had a major impact on the vaping industry. Premarket tobacco product applications (PMTAs), along side recent shipping changes have been testing the markets as of late. However, according to IRI Total U.S. Convenience data, for the latest four weeks ending April 18, 2021, electronic smoking devices saw a 19.9 percent increase in dollar sales and a 24.5 percent increase in unit sales. And for the latest 52 weeks, the category saw a 10.5 percent increase in dollar sales and a 17.7 percent increase in unit sales.

    Credit: Auremar

    Rick Staley, merchandising manager for Nashville, Tenn.-based Tri Star Energy’s Twice Daily stores, noted its numbers are overall in line with IRI’s, according to CStore Decisions. “At Twice Daily, customers are looking for alternative tobacco products,” he said. “We’ve noticed that nicotine pouches and vapor are both doing very well.”

    And at ARKO Corp.’s GPM Investments, the vape subcategory is doing “extremely well,” said Kaitlyn Meara, GPM’s tobacco category manager, adding that customers are looking for variety in nicotine delivery, flavors and price points. The Richmond, Va.-based chain operates or supplies stores in 33 states and Washington, D.C., including both its 1,350 company-operated stores and approximately 1,600 dealer sites. “Like in most other CPG categories,” Meara said, “we saw an increase in baskets due to customers making fewer trips.”

    Now that people are starting to return to their routines and to more traditional work environments, much remains unknown about the way that consumers’ habits will shift moving forward.

    Meara noted it’s extremely hard to predict the tobacco category as a whole, but she’s “excited about the innovation in the category with nicotine pouches and IQOS.”