After forecasting an unexpected slump in profits for this year, Japan Tobacco Inc (JT) said on Tuesday it planned to cut around 1,000 jobs and focus its efforts on winning market share in heat-not-burn (HnB) products such as the Ploom S brand.
Credit: JT
Operating profits for 2021 are expected to fall 23 percent to 363 billion yen ($3.46 billion), compared with the market’s forecast for a slight recovery to 476 billion yen, according to Refinitiv data. JT, despite commanding over half of the domestic cigarette market, has lagged rival Philip Morris in the increasingly popular category of HnB products.
The company said it was looking to cut around 1,000 jobs, offering voluntary and early retirement packages, citing declining sales of conventional cigarettes. At the same time, it said it will bolster investment in what it calls reduced risk products (RRP), including its heat-not-burn Ploom sticks which compete with Philip Morris’ IQOS.
It plans a new heat stick product later this year, aiming to boost its position in Japan, the world’s biggest market for such products as regular e-cigarettes with e-liquids containing nicotine are banned.
“The RRP category in Japan is the most mature and competitive in the world,” JT Group President and CEO Masamichi Terabatake said in a press release. “Reflecting this and the decline of sales volume in recent years… we had to take some difficult yet necessary decisions.”
Indiana is a little closer to placing a tax on vapor products for the first time at $1.56 for a two-pod package. The U.S. state’s legislature also hope to the tax on combustible cigarettes to $2 a pack. A preliminary estimate projects the increase would bring in $278 million.
Credit: Photo Mix
The committee had put off a vote Monday to draft language specifying 40 percent of the money raised — an estimated $112 million — would go to Medicaid, according to Inside Indiana Business. Crown Point Republican Julie Olthoff, the bill’s author, says smoking-related health problems cost Medicaid more than five times that much.
Indianapolis Democrats Robin Shackleford and Greg Porter still voted no. They want all the money earmarked for a new public health fund. Republicans say there’s a separate bill addressing that. Committee chairman Brad Barrett (R-Richmond) notes both bills are headed for the tax-writing House Ways and Means Committee, which will decide where the money goes in the context of the full budget. He says the health committee vote puts the panel on record as urging that the money be spent on health, not just dumped into the state’s general fund.
Brookston Republican Don Lehe also voted no.
Even if the full House passes it, the bill faces a tougher climb in the Senate. In the last five years, senators have killed three bills to either raise the cigarette tax or tax e-cigarettes.
The Malaysian Vape Chamber of Commerce (MVCC) said that the Malaysian vaping industry is valued at RM2.27 billion ($558 million). The figure is one of the primary findings of the recently released “Study on the Malaysian Vaping Industry” report, commissioned by the MVCC.
MVCC president Syed Azaudin Syed Ahma (center) Credit: MVCC
The MVCC has stated previously that the vape industry in Malaysia is too substantial to remain unregulated and has urged the government to immediately introduce appropriate regulations to create a positive multiplier effect to the Malaysian economy.
MVCC commissioned Green Zebras, a market research agency, to conduct the study, the first of its kind in the country, according to a MVCC release. The report found that there are more than 3,300 businesses related directly to the vapor industry, with a workforce of more than 15,000 workers. It was further estimated that workers in vape industry were paid up to RM450 million in wages in total in 2019.
“Our data strongly indicate that this sector is a viable and growing industry in Malaysia and can contribute significantly to the local economy. It has already facilitated the growth of local entrepreneurs, many of which are local and bumiputera businesses,” MVCC president Syed Azaudin Syed Ahmad said. “In addition, the Malaysian vape industry currently has an established ecosystem comprising manufacturers, importers and retailers, and a growing distribution and logistics network.
Credit: MVCC
In Malaysia, the government has already announced an excise tax on vape devices and e-liquids which has been implemented since 1st January 2021, according to thesundaily.com. However, MVCC believes that the tax regime needs to be broadened to include e-liquids with nicotine which make up 97 percent of the Malaysian market, in order to effectively contribute to the government’s revenue.
“The Malaysian vaping industry has significant potential that can be unlocked with practical and comprehensive regulation that must include the use of e-liquids with nicotine. This will spur the growth of SMEs, which will in turn create jobs and generate tax revenue for the Government,” added Syed Azaudin.
Malaysia is in good position to attract FDI into vaping sector as other sectors are seeing challenges to attract investments, according to Syed Azaudin. “MVCC believes the vaping sector is ready and capable to attract quality FDIs given its established ecosystem that global investors and multinational companies would find appealing,” he said.
The global e-cigarette and vape market size is expected to reach $67.31 billion (RM272.54 billion) by 2027, registering a revenue-based CAGR of 23.8 percent from 2020 to 2027, according to a new study conducted by Grand View Research.
“MVCC has spearheaded this study in order to provide the Government with a solid data driven foundation to immediately introduce regulations on the vape industry,” Syed Azaudin said.
To download the full report, visit the MVCC’s website.
The Indiana state legislature has begun to debate raising taxes on vaping products … again. The annual introduction centers on a proposed tax rate of $1.56 on a two-pod pack, the equal nicotine content to a pack of combustible cigarettes.
Credit: Davis Mark
Indiana’s traditional cigarette tax of just under a dollar a pack is the 13th lowest in the nation. Legislators are considering a bill to double it, and tax e-cigarettes for the first time, according to an article on wibc.com. Marion County health director Virginia Caine says it’s critical to include e-liquids in the bill.
She says vaping among teenagers has doubled in the last two years, wiping out any progress the state has made in reducing teenage smoking. Recent U.S. CDC reports say that teen smoking rates declined in 2020. Mason Odle, owner of Just Vapors in Fishers, says he fully supports raising the cigarette tax, but argues e-liquids shouldn’t be included.
He contends e-cigarettes are a more popular and effective means of quitting smoking than FDA-approved products like nicotine gum or patches. That brought a fierce pushback from health officials, who point out the FDA has specifically banned vape manufacturers from marketing their product as a stop-smoking aid until they produce more evidence that it works. And Caine says there are serious concerns about lung damage from vaping.
Former Libertarian candidate for governor Don Rainwater argues increasing cigarette taxes would punish store owners at a time when they’re already reeling from the coronavirus pandemic. But the main objection from House Public Health Committee members centered on the lack of a specific plan for the proceeds from the tax. A vote has been put off till next week to add language earmarking the money for health programs.
Governor Holcomb and House and Senate leaders have all said a cigarette tax hike isn’t on their agenda, without flatly ruling out the possibility. The House approved an increase in 2016 and 2017, and a vape tax in 2019. All three times, the proposals died in the Senate.
According to the U.K. Vape Industry Association (UKVIA), leaked EU plans for a “Tobacco Free Generation” would increase controls on e-cigarettes, despite their proven value in smoking cessation efforts.
This latest EU plan could include the following proposals:
Extend taxation to “novel tobacco products,” including e-cigarettes
Extend the coverage of smoking bans, both indoor and outdoor, to vaping
A full ban on flavored products
The enforcement on plain packaging for vaping products
John Dunne
“We at the UKVIA are seriously concerned by reports that the European Commission is considering such regressive action, which will likely reduce the positive impact that vaping has on people’s lives,” said John Dunne, director general of the UKVIA.
“While we completely support efforts to combat the scourge of cancer in our society, the creation of artificial barriers to harm-reduction products is clearly counterproductive. Adult smokers must be empowered to make positive change, rather than being discouraged.
“Cancer Research UK, along with the Royal College of GPs, have confirmed vaping’s significant harm-reduction compared to cigarettes, as well as its efficacy in smoking cessation. The EU’s plans are out of step with this latest evidence.
“It is vital that the U.K. now take advantage of the legislative and regulatory independence afforded by Brexit, to safeguard this country’s proportionate, evidence-based approach to vaping.”
The document was leaked ahead of the announcement today of the EU’s “Beating Cancer Plan,” which among other things calls for reducing tobacco use to less than 5 percent of the EU population by 2040.
A recent survey from South Korea found that 8 in 10 South Korean e-cigarette users said they had secretly smoked stealthily in non-smoking areas. At 83.5 percent, the vast majority of e-cigarette users said they had vaped illegally, dwarfing the 16.5 percent who said they did not participate in such activity.
Credit Sungho Song
Under the National Health Promotion Act, those who use e-cigarettes in non-smoking areas can be fined, just like for smoking conventional tobacco cigarettes.Heat-not-burn products were not mentioned in the study and would face similar fines, according to a story by The Korea Bizwire.
A research team from the Asan Medical Center conducted a survey of 7,000 men and women between 20 and 69 years of age. Of the total, the number of people who had used e-cigarettes in the previous month stood at 394. Among vapers, 44.6 percent between 20 and 34 years old, while men accounted for 74.1 percent of the total.
Most participants said the smoked at home indoors, which accounted for the largest share at 46.9 percent, followed by private cars at 36.9 percent and outdoor non-smoking areas at 28.3 percent. Men and women accounted for 44 percent and 55.6 percent of the violators, respectively, indicating that more than half of female vapers users are vaping secretly at homes.
Some Loveland City Council members deliberated on a proposed ban on flavored vaping and other tobacco product sales in private text messages, possibly violating Colorado state law, a Dec. 8 text message thread shows.
Credit: Pixabay
Steve Zansberg, a Denver attorney and president of the Colorado Freedom of Information Coalition, called the thread an “extremely clear-cut” violation of state rules.
The Loveland Reporter-Herald obtained the messages from Mayor Jacki Marsh after the paper received a confidential tip. All nine council members and City Manager Steve Adams were included in the thread, though not all council members participated.
Time stamps on the text thread show that 13 of the messages were exchanged by councilors during their regular meeting that evening, which was held virtually and dealt mostly with the proposed ban and the problem of youth vaping.
In the text conversation, council members Kathi Wright, Steve Olson, Don Overcash and John Fogle deliberated on how they would respond to calls for a ban on selling the products.
“Looks like another special meeting this month,” Wright said at 9:17 p.m., reviving a thread that Adams began earlier in the day to let councilors know about a scheduling change.
“yup. but don’t cave,” Overcash replied.
After Olson asked whether Wright was interested in “working with business to find a win win solution,” Wright said she “still believe(d) we have another step, talking with local business.”
SwissX Labs, a U.S.-based CBD company, has brought a lawsuit claiming that Juul Labs infringed on one of its patents. Filed in the U.S. District Court of Delaware, the suit alleges that Juulpods copy the use of a patented combined e-liquid and vaporization chamber (cartomizer) owned by SwissX.
Credit: Insurance Journal
Owned by billionaire Alki David, SwissX states in the suit that Juul Labs has known about U.S. Patent No. 9,351,522 (522 patent) since at least March 2018. The U.S. Patent and Trademark Office (USPTO) issued the patent in 2016 to inventor Robert Safari, who assigned it SwissX.
After its issue on May 31, 2016, the 522 patent was was active until June 1, 2020. On June 2, 2020, “the enforceability of the 522 patent temporarily lapsed, due to an inadvertent failure to pay the maintenance fee,” according to the filing. On Dec. 21, 2020, SwissX filed a petition to reinstate the 522 patent at the USPTO. The Petition was granted, and SwissX paid the outstanding fee.
“Thus, on December 21, 2020, the [522 patent] was restored to full force and effect … SwissX is entitled to damages adequate to compensate it for all acts of infringement that occurred, or which may occur, at any point while the [522 patent] was or is in force,” the suit states.
Juul Labs has not publicly responded to the lawsuit. A judge recently dismissed an investor lawsuit against Juul Labs. However, the company still faces lawsuits from several states and school districts around the U.S.
The latest round of restrictions for the vaping industry by Nova Scotia’s government has caught the ire of the co-owner of a vape shop in Dartmouth. William MacEachern of the Cloud Factory Vape Shop is seeking an injunction against the eastern Canadian province’s newest restrictions on vaping, arguing they unfairly burden adults who are trying to kick a bad habit.
Credit: Fraser Institute
MacEachern launched a constitutional challenge against increased taxes on vaping products, a ban on flavored e-cigarettes and e-liquids, and a prohibition on sampling items in vaping shops, according to Global News. His lawyers say the case is about Nova Scotians’ access to a valuable harm reduction tool in the war against a “No. 1″ killer: cigarettes.
“In basically doubling the cost of our applicant’s vaping products, it greatly reduces their access,” said MacEachern’s lawyer, Sarah Emery. “We’re not arguing that he has an economic interest to cheap vape products as a recreational use, we’re arguing this is a matter of access and that goes to Section 7 rights to security of the person.”
Emery and her partners at Patterson law are seeking an immediate suspension of vaping rules that came into effect in 2020 — rules that earned the province a good deal of praise from Canadian health advocates when first announced in 2019.
In April 2020, Nova Scotia became the first Canadian province to ban the sale of flavored vape juices and e-cigarettes in an effort to reduce their appeal to youth. Higher taxes went into effect in September that year, bringing the rate to 50 cents per ml of e-liquid, and 20 percent of the retail price of all devices.
The nicotine delivery of Juul products available in the United States and Canada (59 mg/mL or 5 percent nicotine by weight) more closely resembles the nicotine delivery and experience of cigarette smoking than Juul products available in the European Union, which contain 18 mg/mL and/or 9 mg/mL of nicotine, according to a new study from Juul Labs published in Nicotine & Tobacco Research.
Researchers posited that heavier and more dependent smokers in particular may require the greater nicotine delivery of the higher nicotine concentration Juul pods (59 mg/mL) in order to successfully transition away from cigarettes.
The new study, which consisted of 24 adult smokers, assessed the nicotine delivery and subjective effects of combustible cigarettes compared to the Juul system with three nicotine concentrations: 59 mg/mL (U.S. and Canada), 18 mg/mL (U.K. and Canada) and 9 mg/mL (U.K.).
At each of five study visits, participants used one of four Juul products or smoked their usual brand of cigarette during controlled (10 puffs) and ad libitum use (5 minutes) sessions. Blood samples were collected, and levels of nicotine in the bloodstream were measured for each study product. Subjective effects, including relief of craving for cigarettes and withdrawal symptoms, were assessed 30 minutes after participants used each product.
The higher concentration (59 mg/mL) Juul product delivered significantly greater levels of nicotine and significantly reduced craving and withdrawal compared to the Juul with 18 mg/mL and 9 mg/mL nicotine concentrations. Researchers concluded that the lower nicotine delivery and craving relief from the 18 mg/mL and 9 mg/mL Juul pods available in the EU may limit the product’s ability to provide a satisfying alternative to cigarette smoking—particularly for more dependent adult smokers living in that region.
“When considering laws and regulations governing nicotine concentration in ENDS, policymakers should bear in mind that the availability of a variety of alternative nicotine products may facilitate even more smokers transitioning away from cigarettes,” said Mark Rubinstein, vice president of global scientific affairs at Juul Labs.
