Tag: Vuse

Judge Rules Reynolds can Continue to sell Vuse

A Virginia federal judge denied a permanent injunction request from Philip Morris International (PMI) to bar R.J. Reynolds Vapor Co. from selling vaping devices that a jury found violated PMI patents. In the order, the judge stated that banning the devices would harm public health.
However, RJRV was ordered to pay a modest patent royalty to its rival PMI. Judge Leonie Brinkeina of the Eastern District of Virginia stated that RJRV is required to pay a royalty of 1.8 percent of net sales for infringing on a patent used in Vuse Alto cartridges, and a 2.2 percent royalty for infringing on a patent used in Vuse Solo G2 cartridges, reports the Winston-Salem Journal.
The royalties will be enforced for the remaining life of the patents. The royalties will be paid quarterly, retroactive to June 16. PMI said that if a permanent injunction was not approved, it requested a 33.5 percent royalty on the Alto cartridges and a 3.75 percent royalty on the Solo G2 cartridges.
The royalties are on top of jury awards in 2022 that totaled $10.91 million for the Alto infringement and $3.16 million for the Solo G2 infringement.
PMI said in a statement that “while we continue to review the court’s decision, we reiterate our gratitude to the jury for its finding that BAT’s affiliate RJR infringed two of our patents with its Vuse products, its confirmation of BAT’s obligation to pay us damages, and its vindication of our industry-leading investments in smoke-free technologies, such as e-vapor.”
RJRV said in a statement that “while we welcome the decision to reject an injunction, we are disappointed with the underlying verdict regarding patent validity and infringement.”
“R.J. Reynolds Vapor is currently evaluating next steps, including the possibility of an appeal to the U.S. Court of Appeals for the Federal Circuit, seeking reversal of the jury’s verdict regarding patent validity and infringement.”
Brinkeina determined that PMI “has not established that it has suffered irreparable injury” from the patent infringements.
The judge wrote that “(PMI) did not have a significant market (in the U.S.) before Reynolds infringed on its patents, has not demonstrated that it has brand recognition in the U.S. for its products, and has not provided compelling evidence that shows the loss of goodwill in the domestic market.”
Brinkeina also determined that the public’s interest in having potentially harm reduction Alto and Solo G2 cartridges available at retail outweighs ordering a permanent injunction “given the undisputed popularity of Reynolds’ Vuse products.”
In the latest Nielsen report on convenience store sales of tobacco products, top-selling Vuse holds a 42.2 percent market share, compared with Juul at 26.1 percent.
April 10, 2023
Vuse Market Share Grows to 42%, Juul Drops to 26%

R.J. Reynolds Vapor Co. has continued to expand Vuse‘s market-share gap with Juul, according to the latest Nielsen convenience store report released Tuesday.
Vuse’s market share rose from 41.5% in the previous report to 42.2%, compared with Juul declining from 26.1% to 26.1%.
The latest Nielsen analysis covers the four-week period ending March 25, according to media reports.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
Consumer demand for tobacco products has ebbed and flowed over the past 12 months, mostly from the impact of inflation and recent upticks in traditional cigarette prices.
No. 3 NJoy was unchanged at 2.7%, while Fontem Ventures’ blu eCigs was unchanged at 1.4%.
On March 6, Altria Group Inc. delivered another shakeup to the tobacco industry by confirming it would pay $2.75 billion in cash to take full ownership of NJoy.
Altria cleared the way for the NJoy purchase by exiting its minority stake in No. 2 e-cigarette Juul while acquiring global licensing rights.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2% increase in the Aug. 10, 2019, report to a 23.9% decline in the latest report.
By comparison, Reynolds’ Vuse was up 31.1% in the latest report, while NJoy was down 10.9%, blu eCigs down 37.4% and Japan Tobacco’s Logic up 5.2%.
As recently as May 2019, Juul held a 74.6% U.S. e-cig market share.
April 5, 2023
Vuse Menthol Pods Granted Stay by Appeals Court

Fifth Circuit Court of Appeals
Two menthol Vuse flavors that received a marketing denial order (MDO) can continue to be marketed by R.J. Reynolds Vapor Co. after the federal Fifth Circuit Court of Appeals issued a stay Monday.
On Friday, the U.S. Food and Drug Administration denied Reynolds Vapor’s premarket tobacco product applications (PMTAs) for the Vuse replacement cartridge Menthol 4.8% (nicotine level) G1 and the Vuse replacement cartridge Menthol 4.8% G2.
As a result, Reynolds would be prohibited from marketing or distributing the products domestically, or risk FDA enforcement action. However, the appeals court’s decision allows the products to stay in the marketplace.
In October last year, the FDA issued MDOs for several menthol-flavored vaping products marketed by Logic Technology Development. It was the first time the FDA has issued MDOs for menthol products after receiving a scientific review.
A few days after the order was issued, Logic obtained a court order from the U.S. Circuit Court of Appeals for the Third Circuit that temporarily stayed the order.
March 22, 2023
Vuse Continues to Gain Market Share Over Juul

Vuse e-cigarettes continue to grab market share from Juul. The gap is growing in both monthly and yearly comparisons, according to the latest Nielsen convenience store report.
The R.J. Reynolds Vapor Co. brand’s market share rose from 41.5 percent in the previous report to 42.7 percent, compared with Juul declining from 26.4 percent to 25.6 percent.
Over the past 12 months, Vuse’s market share was 36.6 percent, compared with 29.5 percent for Juul. The latest Nielsen analysis of convenience-store data covers the four-week period ending Feb. 25.
On Friday, Altria Group Inc. announced that it had exchanged its 35 percent ownership stake in Juul Labs for a non-exclusive, irrevocable global license to certain of Juul’s heated tobacco intellectual properties.
No. 3 NJoy was unchanged at 2.7 percent, while Fontem Ventures’ blu eCigs was unchanged at 1.4 percent. Njoy’s future looks brighter after an announcement Monday that Altria plans to pay $2.75 billion in cash for NJoy.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 25.7 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 34 percent in the latest report, while NJoy was down 8.7 percent, blu eCigs down 39.5 percent and Japan Tobacco’s Logic brand vaping product was down 4.9 percent.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share. Neilson data does not consider vape shop sales, which may include more than 40 percent of all vaping product sales.
March 9, 2023
BAT’s Next-Gen Tobacco Products Profits Growing

Credit: Dilok
British American Tobacco says that it expects its next-generation tobacco products division to be profitable earlier than previously anticipated, but its share price was down as diluted earnings per share declined.
Total revenue for BAT is set to come to £27.7 billion for 2022, up 7.7 percent from 2021.
Its “new categories” arm – made up of vaping products, heated tobacco products and nicotine pouches contributed £2.9 billion of 2022 revenues, which was up by 40.9 percent, reports the Evening Standard.
CEO Jack Bowles said the division was now expected to turn a profit in 2024, one year earlier than previously thought.
“Our new category business delivered strong volume, revenue and market share growth and has become a significant contributor to the group’s financial delivery,” he said. “In 2022, we invested more than £2 billion in new categories to drive long-term sustainable growth, while making excellent progress in reducing operating losses by 62 percent.”
Adjusted operating profit for BAT as a whole was in line with expectations at £12.4 billion.
However, BAT shares are down 4.5 percent so far today.
The top-selling Vuse electronic cigarette of BAT subsidiary R.J. Reynolds Vapor Co. continued to expand the market-share gap with Juul in both monthly and yearly comparisons.
BAT, the owner of the Irish business PJ Carroll, is also seeking to bring a judicial review against a decision by the European Union to ban flavored heated tobacco products.
February 9, 2023
FDA Denies Marketing of 2 Vuse Menthol Products

Unsurprisingly, the U.S. Food and Drug Administration issued marketing denial orders (MDOs) for two menthol e-cigarette products currently marketed by R.J. Reynolds Vapor Company.
In a release today, the regulatory agency said that the products include the Vuse Vibe Tank Menthol 3.0% and the Vuse Ciro Cartridge Menthol 1.5%. Reynolds is now banned from marketing or distributing these products in the U.S. or they risk FDA enforcement action.
The company may resubmit applications or submit new applications to address the deficiencies of the products that are subject to these MDOs. The company may also file a lawsuit against the agency’s denial.
“Consistent with the authorities granted by Congress, the FDA remains committed to evaluating new tobacco product applications based on a public health standard that considers the risks and benefits of the tobacco product to the population as a whole,” said Brian King, director of the FDA’s Center for Tobacco Products, wrote. “The applications for these products did not present sufficient scientific evidence to show that the potential benefit to adult smokers outweighs the risks of youth initiation and use.”
The FDA isn’t expected to approve any flavored vaping products in the near future.
Memos recently submitted to the U.S. Court of Appeals for the Third Circuit show that the U.S. Food and CTP King, reversed a recommended marketing approval of Logic Technology’s menthol vaping products, ignoring the advice of FDA scientists, according to Logic’s lawyers. The new documents were made available to Logic after it had filed its motion for a stay of its marketing denial order (MDO) for its menthol vaping products.
The Vuse products cannot be legally introduced into interstate commerce in the U.S. without risking FDA enforcement. In addition to ensuring that the manufacturer complies with this order, as with unauthorized products generally, the FDA intends to ensure compliance by distributors and retailers. Retailers should contact R.J. Reynolds Vapor Company with any questions about products in their inventory.
“Today’s decision pertains to the specific application submitted for review by FDA,” said King. “It is the responsibility of the applicant to provide sufficiently robust scientific evidence to demonstrate that the necessary public health standard has been met. In this case, the presented evidence did not meet that standard.”
January 24, 2023
Juul’s Market Share Still Falling, Vuse Continues Growth

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

The Vuse brand of e- cigarette is widening its market-share gap with Juul in both monthly and yearly comparisons.
The latest Nielsen analysis of convenience-store data, released Tuesday, covers the four-week period ending Dec. 3 and found that the R.J. Reynolds Vapor Company’s Vuse brand vaping product’s market share grew from 40.4 percent in the previous report to 40.7 percent.
Juul Labs’ former market leading Juul device saw its market share shrink from 27.6 percent to 27 percent. Vuse expanded its year-over-year advantage to 34.9 percent to 30.7 percent compared with 34.4 percent to 31.5 percent in the previous report, according to media reports.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
Juul Labs recently agreed to pay $1.7 billion to settle more than 5,000 lawsuits by school districts, local governments and individuals, which claimed that its e-cigarettes were more addictive than advertised, according to people with knowledge of the deal.
December 14, 2022
Vuse Market Share Over 40%, Juul Drops Below 28%

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

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