A proposal to raise the legal age to buy cigarettes and certain vaping devices is being considered by the Alabama Senate after lawmakers in the Alabama House of Representatives passed the resolution by a vote of 74 to 18.
State representatives returned to work Tuesday after taking a vacation last week. The bill to raise the legal age to buy products with nicotine from 19 to 21 was one of the first bills on the agenda in the state House. It’s sponsored by Representatives Barbara Drummond [D], Napoleon Bracy [D], Merika Coleman-Evans [D], David Faulkner [R], Ralph Howard [D] and Debbie Wood [R].
House Bill 273’s text says “Under existing law, an individual under the age of 19 may not purchase, possess, or transport tobacco products, electronic nicotine delivery systems, or alternative nicotine products.”
Spyder Cannabis Inc. has closed on its acquisition of 180 Smoke, a Canadian e-cigarette retailer. On March 30, Spyder purchased all of the shares of 180 Smoke from CRHC Holdings Corp., parent to 180 Smoke. on a cash-free basis (after post-closing adjustments), for nominal consideration. Additionally, Spyder secured a strategic institutional investor to lead the acquisition of all the existing debt of 180 Smoke, according to a press release.
“We are extremely excited to welcome 180 Smoke to the Spyder team, which undoubtedly strengthens our management and operating teams bringing strong retail processes and expertise to Spyder,” said Dan Pelchovitz, president and CEO of Spyder. “The acquisition of 180 Smoke significantly accelerates the development of Spyder’s cannabis and vape retail growth strategy, providing access to an iconic brand name, an established platform, and a loyal customer base. We are excited by the prospects ahead of us and executing on our immediate cannabis retail expansion plans in Ontario.”
Spyder will have the ability to utilize its wholly-owned subsidiary’s Retail Operator License issued by the Alcohol and Gaming Commission of Ontario (AGCO) to convert some of 180 Smoke’s existing vape retail locations to licensed cannabis dispensaries by obtaining a Retail Store Authorization from the AGCO, the release states. The acquisition is expected to immediately increase Spyder’s consolidated revenue with the addition of 180 Smoke’s nicotine vape sales, franchise revenue and other wholesale and distribution revenue which generated approximately $12.9 million in unaudited net revenue with gross margins of 50% during the year ended December 31, 2020.
180 Smoke’s 91 employees who will continue to operate 180 Smoke’s 18 brick-and-mortar vape retail locations, 8 franchises, and its corporate head office and distribution warehouse, following the closing of the acquisition.180 Smoke’s current customer base includes 92,481 in-store accounts, 98,052 online accounts, as well as 235 specialty wholesale vape B2B accounts, according to the release. Spyder expects to integrate its 2 brick-and-mortar vape retail stores with those of 180 Smoke’s to “leverage the acquired know-how and intellectual property, including retail store design and layout, standard operating procedures, administrative systems and customer support, human resources and staff training, and accounting.”
PAX Labs has launched the Era Life cannabis vaporizer. Created for the on-the-go consumer. According to the company, Era Life delivers an effortless experience without compromising on full flavor, vapor or consistency. The device brings together a high performing battery with PAX’s most compact device yet. Era Life works with any PAX Era pod, featuring curated, high-purity cannabis, produced by one of PAX’s carefully selected partners across the country. Era Life is available in the colors Onyx, Grass, Blaze and Indigo.
“We designed the Era Life to provide a simple, fun way to enjoy cannabis while still carrying the PAX promise of iconic design and enduring quality that our customers have come to know and trust,” said Colt Stander, head of product at PAX Labs, in a statement.
We designed the Era Life to provide a simple, fun way to enjoy cannabis while still carrying the PAX promise of iconic design and enduring quality.
“Cannabis is one of today’s fastest growing industries and we’re seeing new consumers enter the space rapidly. We’ve taken the best PAX has to offer, perfected the core functionality, and packaged it up in our most portable design yet—perfect for those who want the easiest possible experience but still care about durability, aesthetics, and safety in the products they use.”
PAX’s temperature control checks the temperature 125 times per second, ensuring a consistent temperature that delivers a full, never-burnt flavor throughout the life of the pod. Whether using lower temperature for more flavor or higher temperature for more vapor, Era Life creates smooth airflow through laser cut sidings and achieves better hits every time.
Era Life provides more than 150 puffs per charge and an easy-to-read LED low battery indicator ensures it’s never without juice. The product is UL-certified, meeting the leading safety standards
Priced at $35, Era Life is available for purchase by those 21 and over beginning on pax.com and at licensed retailers in legal U.S. states where PAX products are sold.
The state of Kentucky’s General Assembly has voted to remove the state’s 15 percent wholesale tax on vaping hardware when sold separately from e-liquids. The e-liquid will continue to be taxed at 15 percent. That was the intent of the original tax bill, Republican Rep. Jason Petrie of Elkton, sponsor of House Bill 249, an omnibus revenue bill, said at a February committee meeting. He said legislators had been receiving lots of calls about it, and the bill more clearly defines how open “vaping” systems should be taxed.
Last March, when the Senate Appropriations and Revenue Committee passed a trimmed down version of a House bill to tax e-cigarettes for the first time in Kentucky, Sen. Chris McDaniel, R-Taylor Mill, said the hardware should only be taxed at 6%, according to the Times-Tribune. Ultimately, the 15 percent tax on open systems, including both hardware and solution, and a $1.50-per-pod tax on closed vapor cartridges were added to the revenue bill and became law.
A fiscal statement attached to this year’s bill notes that Kentucky started taxing vaping products in August 2020 and has generated about $1.5 million per month from the levies. It says about $1.4 million per month comes from taxes on closed systems, like those sold by Juul Labs, and about $185,500 per month on the open systems, which are typically sold in “vape” shops. The report says removal of the 15 percent separate-hardware tax will cost $243,750 in revenue. That’s a relatively small amount, but health advocates were not happy with the change.
“Removing the tax on open vaping system devices reduces tax revenues at a time when Kentucky remains very uncertain about the long-term economic impact of the pandemic,” Ben Chandler, president and CEO of the Foundation for a Healthy Kentucky, said in an e-mail, according to the Times-Tribune. “Moreover, these devices will become the sole tobacco product to escape a state excise tax.”
In contrast, Chandler said, “Only 19 of the state’s 61 local health departments will get funding for tobacco prevention and cessation beginning July 1. We urge the governor and lawmakers to work together to address Kentucky’s continuing tobacco and nicotine addiction problem, which appears to have grown during the pandemic.”
The total is now 73 in 2021. The U.S. Food and Drug Administration (FDA) issued four more warning letters for marketing illegal vapor products. Morin Enterprises Inc. d/b/a Ecig Crib, Nicoticket LLC, Bouji Moj Oyeeb, Inc. d/b/a MasterMix E-Liquid all received letters on on March 26 and those letters were posted to the FDA’s website today, March 30.
The FDA states that a review of the ecigcrib.com website revealed that the company “manufacture and offer for sale or distribution to customers in the United States e-liquid products without a marketing authorization order “including: E Cig Crib – Planet of the Grapes E Liquid and E Cig Crib – Cotton Candy E Liquid.” Nicoticket’s letter states the website “nicoticket.com revealed that you manufacture and offer for sale or distribution to customers in the United States e-liquid products without a marketing authorization order including: Nicoticket Wakonda and Nicoticket The Virus.” Bouji’s letter states that a review of “mastermixeliquid.com revealed that you manufacture and offer for sale or distribution to customers in the United States e-liquid products without a marketing authorization order including: MasterMix E-Liquid – Mango and MasterMix E-Liquid – Maraschino Cherry.”
The FDA also states that “the violations discussed in this letter do not necessarily constitute an exhaustive list” and companies should quickly address any products that violate the same rules as the product mentioned in the letter. “Your firm is a registered manufacturer with 1,433 products listed with FDA. It is your responsibility to ensure that your tobacco products comply with each applicable provision of the FD&C Act and FDA’s implementing regulations,” the letter states.
Bouji has over 31,500 products listed with FDA. Nicoticket is a registered manufacturer with over 6,800 products listed with FDA and E-cig Crib is a registered manufacturer with over 4,700 products listed with FDA.
Companies that receive warning letters from the FDA have to submit a written response to the letter within 15 working days from the date of receipt describing the company’s corrective actions, including the dates on which it discontinued the violative sale, and/or distribution of the products. They also require the company’s plan for maintaining compliance with the FD&C Act in the future.
RELX International will launch its next-generation e-cigarettes, the Infinity and Essential, in Colombia this month. The Infinity features RELX International’s latest innovations in product design, vapor quality, mobility and overall user experience. The Essential allows users to experience key elements of the Infinity’s design at a more accessible price point.
According to RELX, Infinity and Essential feature a full flavor and smooth puff due to the independently-developed Super Smooth Performance technology. With more than a year dedicated to the design process, this data-driven technology was developed by defining five key elements that constitute the perfect puff. This technology was perfected through 76 sensory tests and repeated refinements of the parameters measuring RELX Super Smooth Performance.
RELX International will launch its next-generation e-cigarettes, the Infinity and Essential, in Colombia this month. The Infinity features RELX International’s latest innovations in product design, vapor quality, mobility and overall user experience. The Essential allows users to experience key elements of the Infinity’s design at a more accessible price point.
Our goal is to help smokers who cannot or do not want to quit, to transition to a better alternative with confidence.
RELX International will launch its next-generation e-cigarettes, the Infinity and Essential, in Colombia this month. The Infinity features RELX International’s latest innovations in product design, vapor quality, mobility and overall user experience. The Essential allows users to experience key elements of the Infinity’s design at a more accessible price point.
According to RELX, Infinity and Essential feature a full flavor and smooth puff due to the independently-developed Super Smooth Performance technology. With more than a year dedicated to the design process, this data-driven technology was developed by defining five key elements that constitute the perfect puff. This technology was perfected through 76 sensory tests and repeated refinements of the parameters measuring RELX Super Smooth Performance.
The design of the Infinity device was optimized more than 40 times and more than 12,000 pods were tested to ensure leak resistance and high-quality standards. Patent applications have been submitted for more than 50 innovations used in the device, including its leak-resistant design, e-liquid pods and wireless charging case. In March 2020, the Infinity was awarded the Red Dot Award: Product Design 2020.
“I’m proud of the entire RELX global team for creating this beautifully-designed Infinity device with superior technology, and with a dedication to innovation that we are now known for worldwide,” said RELX International CEO Bing Du in a statement. “Ultimately our goal is to help current smokers who cannot or do not want to quit, to transition to a better alternative with confidence. The more budget-friendly Essential device also allows users to experience RELX’s premium quality features”.
A large majority of Malaysians want the government to regulate the vaping industry more heavily, according to a recent survey. The Malaysian Insights & Perspectives on Vape survey, commissioned by the Malaysian Vape Industry Advocacy (MVIA), showed that 87 percent Malaysians agree that a tax should be imposed on vaping products and 74 percent think that the revenue collected from vape products could be spent by the government on important sectors such as education.
The survey also revealed that 76 percent of those polled think the country’s economy will benefit from such regulations, according to an article in the Malay Mail. A sample size of 1,025 Malaysian adults were polled and “is reflective of the perception of all Malaysian adults nationwide.” Conducted by Green Zebras, a market research company, the survey was commissioned to get a better understanding of Malaysians’ perception on vaping and its use as a method of tobacco harm reduction, according to the MVIA.
“The opinion poll shows most Malaysians want regulations on vape products. Official reports from the Ministry of Health indicate that there are over one million vapers in Malaysia and yet there are no regulations in place, leaving consumers no choice but to use unregulated products,” said Rizani Zakaria, president of MVIA. “Recent reports from local industry groups have already confirmed that the vape industry has significant potential to contribute to the Malaysian economy with capabilities to create jobs, develop existing businesses and SMEs within the industry, and attract investments. This is a fact that cannot be ignored, and the government must act quickly to introduce regulations on vape products.”
A California magistrate judge said vaping would be off-limits during upcoming depositions in multidistrict litigation against Juul labs. The suits allege that the e-cigarette manufacturer intentionally marketed product to teens, according to law360.com. Judge Jacqueline Scott Corley wrote that the court “confirms that no party shall vape during deposition questioning.” She added that individuals who vape can take however many breaks as they need. “These breaks shall not count against the presumptive seven-hour deposition limit.”
The actions include putative class actions, actions on behalf of school districts and other governmental entities, and individual personal injury cases. The lawsuits allege that Juul Labs “marketed its JUUL nicotine delivery products in a manner designed to attract minors, that [Juul Labs] marketing misrepresents or omits that JUUL products are more potent and addictive than cigarettes, that JUUL products are defective and unreasonably dangerous due to their attractiveness to minors, and that [Juul Labs] promotes nicotine addiction.”
North Carolina was the first state to sue Juul over accusations that it targets underage youths with its products. Most specifically, the NC Attorney General’s office accuses Juul of violating the state’s Unfair and Deceptive Trade Practices Act.
The Intertabac and Intersupply 2021 trade shows, the largest combined vaping and other tobacco product industry events, will not take place due to the ongoing coronavirus Covid-19 pandemic. Billed as the world’s largest tobacco trade show, the event was scheduled to take place Sept. 16-18, 2021 in Dortmund, Germany. Westfalenhallen Unternehmensgruppe, the owner of the Intertabac show, announced today that the event is cancelled after talking with exhibitors and sponsors.
“Working closely with the industry associations and partner associations, the conceptual sponsors, the advisory board and the exhibitors of the twin fairs, it has become clear that the vast majority is against holding the events this September, as previously announced,” said Sabine Loos, managing director for Westfalenhallen Unternehmensgruppe, in a statement.
Intertabac showcases nearly every product that is associated with consuming nicotine, from vaping products and combustible cigarettes to machine-made and premium cigars, pipes, shisha, smokeless and other tobacco-related products. In 2019, 13,800 people attended the event which had over 500 exhibitors from 47 countries according to Intertabac.
Last year’s event was also cancelled. The dates for Intertabac 2022 is scheduled for Sept. 15-17, 2022, according to Westfalenhallen Unternehmensgruppe .
Chinese stocks related to the traditional tobacco business rose following suggestions that China would regulate e-cigarettes like tobacco products.
Cigarette packaging provider Letong Chemical and cigarette printing and filter maker Shaanxi Jinye Sci Tech & Education surged by the daily cap of 10 percent, according to the South China Morning Post.
By contrast, vapor companies tanked. Smoore lost HKD106 billion in market cap while RELX Technology shed $14.45 billion on the New York Stock Exchange immediately after the announcement.
On March 22, China’s Ministry of Industry and Information Technology and the State Tobacco Monopoly Administration released a proposed policy that aims to address tobacco product quality issues and false advertising. Without providing details, the agencies indicated that the changes would also apply to vapor products. The changes are currently subject to a public consultation that ends April 22.
Having taken arduous and often herculean steps to remain compliant with all government regulations, Kaival Brands and the leadership at Bidi Vapor hope that additional supervision of e-cigarette manufacturing will help raise standards for the devices worldwide.
With around 300 million smokers, China is the world’s largest tobacco market and the world’s largest potential market for vapor products. iiMedia Research estimates that the Chinese e-cigarette market could reach CNY10 billion ($1.53 billion) in 2021. There were more than 170,000 vapor companies as of February 2021. The market is also expected to grow in the future year.
In 2019, Chinese authorities banned e-cigarettes from online shopping channels. The restrictions prompted e-cigarette companies to invest significantly in developing physical stores across the country. RELX Technology, for example, received 30 percent of its revenues from online sales prior to the ban. In January 2020, the company pledged to invest more than CNY500 million over the three years to open 10,000 authorized sellers in China.
Some vapor companies welcomed the prospect of greater supervision over the e-cigarette sector in China. U.S.-headquartered Kaival Innovations Group, which distributes the Bidi Stick brand, said the announcement would have no effect on its operations.
“Having taken arduous and often herculean steps to remain compliant with all government regulations, Kaival Brands and the leadership at Bidi Vapor hope that additional supervision of e-cigarette manufacturing [in China] will help raise standards for the devices worldwide,” the company wrote in a press release.