Tag: Vuse

  • E-Cig Market Gap Between Juul, Vuse Continues to Close

    E-Cig Market Gap Between Juul, Vuse Continues to Close

    The market-share gap between the top-selling U.S. electronic cigarettes has shrunk over the past month with Juul holding about a 4.2-percentage point gap over R.J. Reynolds Vapor Co.’s Vuse.

    The latest Nielsen analysis of convenience store data, covering the four-week period ending Feb. 12, determined Juul was at 37.9percent market share and Vuse at 33.7 percent, according to Winston-Salem Journal.

    There has been a 4- to 4.8-percentage point gap between the two e-cigarettes for the last six Nielsen reports.

    NJoy was at 3.2 percent, up from 3.1 percent in the previous report, while Fontem Ventures’ blu eCigs rose from 2.3 percent to 2.4 percent.

    E-cigarette sales overall have slumped since February 2020, when the Food and Drug Administration implemented its latest round of heightened regulations on the products.

    Those restrictions foremost required manufacturers of cartridge-based e-cigarettes, such as Juul Labs Inc., Reynolds Vapor, NJoy and Fontem, to stop making, distributing and selling “unauthorized flavorings” in February 2021, or risk enforcement actions.

    Goldman Sachs analyst Bonnie Herzog said another factor in the slump is “the impact of e-cigarette market denial orders by the FDA as it continues to work through premarket tobacco applications.”

  • U.S. Vapor Sales Still Slow After Enhanced Regulation

    U.S. Vapor Sales Still Slow After Enhanced Regulation

    Thee market-share gap between the top-selling U.S. electronic cigarettes remained unchanged with both having a slight decline in the latest Nielsen analysis of convenience store data. The report covers the four-week period ending Dec. 18, according to the Winston-Salem Journal.

    Nielsen determined No. 1 Juul was at 37.6 percent, down from 38.2 percent in the previous report.

    Meanwhile, the Vuse brand of R.J. Reynolds Vapor Co. had a 33.5 percent market share, down from 34 percent in the previous report. NJoy was at 3 percent, unchanged from the previous report, while Fontem Ventures’ blu eCigs was at 2.3 percent, down from 2.4 percent.

    Overall, sales of electronic cigarettes were up 4.8 percent year over year for the latest four-week period, boosted by recent price hikes. Still, e-cigarette sales overall have slumped since February 2020, when the Food and Drug Administration implemented its latest round of heightened regulations on the products.

    Those restrictions foremost required manufacturers of cartridge-based e-cigarettes, such as Juul Labs Inc., Reynolds Vapor, NJoy and Fontem, to stop making, distributing and selling “unauthorized flavorings” in February 2021, or risk enforcement actions.

    Goldman Sachs analyst Bonnie Herzog said another factor in the slump is “the impact of e-cigarette market denial orders by the FDA as it continues to work through premarket tobacco applications.”

  • Vuse Wins SEAL Sustainable Product Award

    Vuse Wins SEAL Sustainable Product Award

    Photo: BAT

    The Vuse e-cigarette brand has won the Sustainable Product Award in the 2021 SEAL (Sustainability, Environmental Achievement and Leadership) Business Sustainability Awards. The award recognizes innovative and impactful products that are “purpose-built for a sustainable future.”
     
    The SEAL Awards celebrate leadership through business sustainability and environmental journalism awards.
     
    “We are honored to receive this SEAL Sustainable Product Award for our Vuse vapor brand,” said Kingsley Wheaton, BAT’s chief marketing officer, in statement.

    “At BAT, we are creating the brands of the future with sustainability at their core. In 2021, Vuse was certified as the first global carbon neutral vape brand. This is part of Vuse’s broader sustainability program, which aims to eliminate single-use plastics and have all packaging recyclable by 2025.
     
    “We are proud that Vuse has set the sustainability standard within the vaping category.”

  • Vuse Quickly Narrowing Market Share Gap With Juul

    Vuse Quickly Narrowing Market Share Gap With Juul

    Vuse is now only 4.2 percent of the market behind Juul. According to a Nielsen analysis of convenience store data, covering the four-week period ending Dec. 4, Juul was at 38.2 percent, down from 38.8 percent in the previous report. Vuse, however, held steady with 34 percent of the market.

    Credit: Overland Park Vape Shop

    NJoy was at 3 percent, unchanged from the previous report, while Fontem Ventures’ blu eCigs was at 2.4 percent, also unchanged, according to a Winston-Salem Journal report. Overall, sales of electronic cigarettes were up 6.7 percent year over year for the latest four-week period, boosted by recent price hikes.

    Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 9.7 percent decline in the latest report. By comparison, Reynolds’ Vuse was up 50.1 percent in the latest report, while No. 3 NJoy was down 23.2 percent and No. 4 blu eCigs down 13.8 percent.

    Goldman Sachs analyst Bonnie Herzog has said that NJoy “refutes Nielsen’s data and methodology.”

    On Oct. 12, the FDA issued a landmark ruling in approving a Vuse Solo product as appropriate to market to smokers from a public-health standpoint. The FDA’s order covers the tobacco flavor of the Vuse Solo closed electronic nicotine delivery system, its power unit and two replacement cartridges.

    However, the FDA rejected submissions for 10 flavored Vuse Solo products. It said it “is still evaluating” the company’s application for menthol-flavored products for Vuse Solo.

    Reynolds has said the FDA’s orders “confirm that Vuse Solo products are appropriate for the protection of the public health, underscoring years of scientific study and research dedicated to ensuring that adult nicotine consumers age 21+ have access to innovative and potentially less harmful alternatives to traditional tobacco products.”

  • Yach: Vuse Approval a Positive for Tobacco Harm Reduction

    Yach: Vuse Approval a Positive for Tobacco Harm Reduction

    Derek Yach

    More governments need to follow the science.

    By Derek Yach

    The evidence is in. For the first time, the U.S. Food and Drug Administration has authorized the marketing of an e-cigarette in the country because it determined the help it offers adult smokers outweighs the attraction such products may hold for youth.

    The decision to allow the sale of British American Tobacco’s Vuse Solo closed electronic nicotine-delivery system, along with three tobacco-flavored cartridges, marks the third time in less than two years that the agency, despite vociferous, emotion-driven opposition from politicians and interest groups, has used peer-reviewed scientific evidence to approve tobacco harm reduction (THR) products.

    With this latest move, the FDA has signaled a distinct turn in the oft-contentious debate surrounding e-cigarettes, in which opponents claim little is known about what toxic chemicals they contain and that the tobacco industry has a terrible track record when it comes to being forthcoming about its products.

    That was not the case here, indicated Mitch Zeller, the director of the agency’s Center for Tobacco Products. “Today’s authorizations are an important step toward ensuring all new tobacco products undergo the FDA’s robust scientific premarket evaluation,” he said in a statement. “The manufacturer’s data demonstrates its tobacco-flavored products could benefit adult smokers who switch to these products—either completely or with a significant reduction in cigarette consumption—by reducing their exposure to harmful chemicals.”

    We have said it before, and we’ll continue to say it again (and again and again) in the face of all this misinformed vitriol and distrust: THR products are effective tools to help smokers lessen their risk of developing diseases such as lung cancer and COPD. So says one study after the next, including a recent measured, sober look at the risks and benefits of e-cigarettes that is signed by no less than 15 former presidents of the Society for Research into Nicotine and Tobacco, a leading international proponent of evidence-based science.

    The key word here is “evidence.” Although e-cigarettes are not risk-free, they have been found to be up to 95 percent less harmful than combustible cigarettes because they contain no tar and significantly fewer chemicals that make up the toxic stew of smoke in combustible cigarettes.

    Evidence, carefully compiled, weighed and debated, is how the FDA reached its earlier decisions to provisionally authorize the sale of Swedish Match’s snus and Philip Morris International’s IQOS heat-not-burn sticks as modified-risk tobacco products (MRTPs), subject to regular review. And “evidence” is how it made its first decision to approve the marketing of Vuse.

    It reached its decision through dispassionate, rigorous diligence—a risk-proportionate, microscopic gauging of the potential harm e-cigarettes pose for young people versus their potential therapeutic uses for adults who smoke combustible cigarettes and would like a less damaging alternative. Indeed, the FDA’s approval process is so thorough, it is accepted as the international gold standard for vaccines, pharmaceuticals and medical devices. As Adam I. Muchmore, a Pennsylvania State University law professor, explained last month [August] in an interview with Newsweek about the wait for Covid-19 vaccine approval, “There are a lot of ‘i’s’ to be dotted and ‘t’s’ to be crossed, and these are not simple bureaucratic requirements. Both producing this data, and reviewing it, requires the work of multiple experts in a wide range of scientific fields.”

    We hope the FDA will continue to use scientific evidence to approve the sale of menthol-flavored e-cigarettes so that combustible menthol cigarette users, among them the majority of African-American smokers, also have the opportunity to reduce their health risk. And we hope it will consider that nicotine-replacement therapy gums and sprays are already marketed in menthol and other flavors, all to help smokers quit.

    One does not need to look far to see the effects of FDA decisions: Following its full approval last August of Pfizer-BioNTech’s Covid-19 vaccine, a “tidal wave” of people were expected to line up for their jabs, spurred by employers and businesses that have been waiting for the green light and at least some doubters who needed more reassurance it is safe.

    And the National Institutes of Health’s Anthony Fauci aptly summed up the FDA’s influence in a comment earlier this year about its approval for Aimmune Therapeutics’ Palforzia, the first drug to treat peanut allergy for children. “Science is showing us the path to a future in which new therapeutic options may provide both solutions as well as peace of mind that individuals with food allergies and their families deserve,” he said.

    Those words could well apply to the field of THR too, although the FDA’s policy of placing the onus solely on individual companies to prove they contribute to public health (to wit, the 2.3 million pages of evidence PMI submitted on behalf of its IQOS application) has already left some smaller, streamlined companies out in the cold.

    That said,  governments in lower and middle income countries (LMICs), where the vast majority of the world’s 1.14 billion smokers live, would do well to study all three of the FDA decisions regarding THR products as they work to strengthen their own national research and regulatory capabilities and to take note of the careful steps the agency continues to take as it examines the applications of other companies that manufacture e-cigarettes, including Juul.

    These governments and their public health authorities need to review the statistics from places such as the United Kingdom, which has supported e-cigarette use as an effective way to lessen health risks and even quit combustible smoking altogether. Or, conversely, they could take two minutes and 42 seconds to watch a graphic Public Health England demonstration of the viscous, oozing, sticky dark brown residue left in the lungs from the smoke from 16 packages of cigarettes over the period of one month compared to the barely discernible trace of vapor left by the equivalent number of e-cigarettes over the same period.

    Right now, a huge gap exists between research output in tobacco control by a few developed countries and LMICs, and when it comes to reduced-risk products, the gap is even greater, a reflection of both the lack of support for homegrown scientific research and a concomitant reliance on advanced industrialized countries for regulatory scientific advice and support. The Foundation is committed to playing its role in closing this gap to allow LMICs to have the scientists able to fully inform their policymakers about the potential benefits of THR.

    There appears to be no interest in tobacco harm reduction as a principle or a tendency to unquestioningly accept the warnings by bodies such as the World Health Organization, which itself is mired in a past overtaken by technological advancements and sounds like the proverbial Greek chorus as it points to the lack of long-term testing and the perils such products pose to youth.

    The most extreme example of this governmental attitude is in India, where, despite 1.3 million people dying each year from tobacco-related diseases, e-cigarettes were banned in haste by the government, which was urged to do so by The Union, a Bloomberg-funded NGO based in Paris that recommends such extreme measures for LMICs on the supposed grounds that youth in these countries are particularly vulnerable. In turn, this has led to a burgeoning black market that prices these products out of reach of many of the disadvantaged communities who could use them most.

    The fact is, the most favored tobacco control measure in India is tax increases, which only serves to exacerbate the difference between the rich and the poor, for the latter group must turn to cheaper, even more dangerous products such as bidis, thin cigarettes composed of unprocessed tobacco that are hand-rolled in leaves and contain higher concentrations of nicotine, tar and carbon monoxide than conventional cigarettes sold in the United States.

    In Indonesia, where more than a quarter of the population smokes, including 19.4 percent of young people between the ages of 13 to 15, the local—and significantly cheaper—cigarette of choice is the unfiltered kretek, made from a blend of tobacco, cloves and other additives. Yet, there is little government oversight, with children even exposed to lengthy tobacco advertisements before blockbuster Hollywood films.

    Still, the WHO refuses to apply the consequences of harm reduction always being part of the definition of tobacco control in the Framework Convention on Tobacco Control. A good start would be for the WHO to consider recent peer-reviewed research by leading scientists that underpins the FDA submission and not reject it simply because it has been funded by the tobacco industry. In its Report on the Global Tobacco Epidemic—2021, it does not waver from its position, stating that new and emerging products simply chart a “new threat to tobacco control.”

    “As they emerge and rapidly evolve, these products can be difficult to characterize and therefore bring with them many regulatory challenges,” it states. “At the same time, the tobacco and related industries behind these newer products pedal misinformation campaigns, marketing them as ‘clean,’ ‘smoke-free’ or ‘safer,’ and claim they are effective cessation aids. By doing so, these industries attempt to appear part of the solution to the tobacco epidemic as opposed to instigators and perpetrators of the epidemic.”

    How disheartening! Yes, the tobacco industry has acted unconscionably in the past, lying about the toxicity of cigarettes and shamelessly professing its primordial dedication to the health and welfare of smokers. But, to paraphrase the old saying, change—real change—starts from within. We are seeing signs of that in the tobacco industry, with the results recognized by the FDA, leading health experts and authorities in countries such as the U.K.  

    It is time for all of us to move on—together.

    To stop treating all nicotine products as the same.

    To acknowledge that we all have a stake in people’s health and well-being and in a healthy future for our children, their children and for generations to come.

    And to start saving up to 4 million lives a year in the interim as the battle—our battle—continues to eradicate combustible tobacco for good.

  • FDA Grants First Vapor Marketing Orders to RJR’s Vuse

    FDA Grants First Vapor Marketing Orders to RJR’s Vuse

    The U.S. Food and Drug Administration announced today it has authorized the marketing approval of three new vapor products to the RJ Reynolds (RJR) Vapor Company for its Vuse device and two tobacco-flavored pods It marks the first set of electronic nicotine-delivery system (ENDS) products ever to be authorized by the FDA through the premarket tobacco product application (PMTA) pathway. It also denied Vuse PMTAs for flavored products other than tobacco.

    The FDA issued marketing granted orders for RJR’s Vuse Solo closed ENDS device and accompanying tobacco-flavored e-liquid pods, specifically, Vuse Solo Power Unit, Vuse Replacement Cartridge Original 4.8% G1, and Vuse Replacement Cartridge Original 4.8% G2.

    The agency suggests the data submitted to the FDA by RJR demonstrated that marketing of these products is appropriate for the protection of public health. The authorization allows these products to be legally sold in the U.S.

    “Today’s authorizations are an important step toward ensuring all new tobacco products undergo the FDA’s robust, scientific premarket evaluation. The manufacturer’s data demonstrates its tobacco-flavored products could benefit addicted adult smokers who switch to these products – either completely or with a significant reduction in cigarette consumption – by reducing their exposure to harmful chemicals,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products. “We must remain vigilant with this authorization and we will monitor the marketing of the products, including whether the company fails to comply with any regulatory requirements or if credible evidence emerges of significant use by individuals who did not previously use a tobacco product, including youth. We will take action as appropriate, including withdrawing the authorization.”

    Under the PMTA pathway, manufacturers must demonstrate to the agency that, among other things, marketing of the new tobacco product would be appropriate for the protection of the public health. These products were found to meet this standard because, among several key considerations, the agency determined that study participants who used only the authorized products were exposed to fewer harmful and potentially harmful constituents (HPHCs) from aerosols compared to users of combusted cigarettes, according to a release.

    “The toxicological assessment also found the authorized products’ aerosols are significantly less toxic than combusted cigarettes based on available data comparisons and results of nonclinical studies. Additionally, the FDA considered the risks and benefits to the population as a whole, including users and non-users of tobacco products, and importantly, youth,” the release states. “This included review of available data on the likelihood of use of the product by young people. For these products, the FDA determined that the potential benefit to smokers who switch completely or significantly reduce their cigarette use, would outweigh the risk to youth, provided the applicant follows post-marketing requirements aimed at reducing youth exposure and access to the products.

    The FDA also issued 10 marketing denial orders (MDOs) for flavored ENDS products submitted under the Vuse Solo brand by RJR. Due to potential confidential commercial information issues, the FDA is not publicly disclosing the specific flavored products.

    These products subject to an MDO for a premarket application may not be introduced or delivered for introduction into interstate commerce. Should any of them already be on the market, they must be removed from the market or risk enforcement. Retailers should contact RJR with any questions about products in their inventory. The agency is still evaluating the company’s application for menthol-flavored products under the Vuse Solo brand.

    “Additionally, today’s authorization imposes strict marketing restrictions on the company, including digital advertising restrictions as well as radio and television advertising restrictions, to greatly reduce the potential for youth exposure to tobacco advertising for these products,” the release states. “RJR Vapor Company is also required to report regularly to the FDA with information regarding the products on the market, including, but not limited to, ongoing and completed consumer research studies, advertising, marketing plans, sales data, information on current and new users, manufacturing changes and adverse experiences.

    The FDA may suspend or withdraw a marketing order issued under the PMTA pathway for a variety of reasons if the agency determines the continued marketing of a product is no longer “appropriate for the protection of the public health,” such as if there is a significant increase in youth initiation. While today’s action permits the products to be sold in the U.S., it does not mean these products are safe or “FDA approved.”

    The agency will continue to issue decisions on applications, as appropriate, and is committed to working to transition the current marketplace to one in which all ENDS products available for sale have demonstrated that marketing of the product is “appropriate for the protection of the public

  • ITC: IQOS Infringes on BAT Patents, U.S. Sales to End

    ITC: IQOS Infringes on BAT Patents, U.S. Sales to End

    Photo: theaphotography

    The International Trade Commission (ITC) has upheld an initial determination from May 2021 that Philip Morris International’s IQOS device infringes on two patents owned by BAT subsidiary Reynolds American Inc. (RAI).

    The agency has instituted an import ban and a cease-and-desist order preventing IQOS consumables and devices from being sold in the U.S. in 60 days. PMI’s U.S. partner, Altria Group, plans to continue to sell IQOS through the 60-day period in its existing markets.

    BAT welcomed the ruling. “Infringement of our intellectual property undermines our ability to invest and innovate and thereby reduce the health impact of our business,” the company wrote in a statement. “We will therefore defend our IP robustly across the globe.”

    The patents relate to an electronically powered device with a heater to generate an aerosol and expire in October 2026 and November 2031. BAT has filed similar cases globally, including in Germany, the U.K., Japan and Italy.

    Morgan Stanley said the ruling would have limited financial impact on PMI and Altria, as IQOS in the U.S. is not a meaningful contributor to the companies’ earnings. The outcome of similar cases brought by BAT against PMI internationally, however, could have a greater impact. But so far, PMI has been successful defending cases in the U.K. and Greece.

    The investment bank also noted that the IQOS ban applies to imported product, suggesting it may be overcome by shifting production to the U.S.

    The ITC decision will now be reviewed by the U.S. Trade Representative. If the decision is not vetoed within 60 days (only a handful have ever been vetoed), it can be appealed to the U.S. Court of Appeals, but the import ban would still be in effect throughout an appeals process.

  • Vuse Becomes No. 1 Global Vaping Brand

    Vuse Becomes No. 1 Global Vaping Brand

    Photo: BAT

    Vuse is now the No. 1 global vaping brand by value share, according to its manufacturer, BAT.

    Vuse is the category value share leader in four of the top five vapor markets (Canada, France, Germany and the U.K.), and BAT’s U.S. momentum in vapor means Vuse is now leader by value share in 22 states, up from 20 in July, BAT announced on its website.

    In May this year, BAT also announced that Vuse became the world’s first global carbon neutral vape brand.

    “We are delighted that Vuse has become the number one global vaping brand,” said Jack Bowles, CEO of BAT. “It is proof that we are building brands of the future, underpinned by strong innovation, as part of our vision for ‘A Better Tomorrow.’

    “In the first half, we delivered 50 percent New Category revenue growth and added 2.6 million consumers of our noncombustible products, our highest ever increase, to reach 16.1 million consumers. This momentum is powered by our strong global brands Vuse, Glo and Velo. Each New Category brand grew its category share by more than 280 base share points [bsp] across key markets and recorded volume growth of 70 percent or more.”

    At its half-year results, BAT reported that its vapor business performed strongly, with revenue up 59 percent, volume grew by 70 percent and consumer numbers were up by 0.9 million to reach 7.5 million. Since December 2020, Vuse’s value share is up 340 bps, reaching 34 percent in July 2021.

     

     

  • Significant Growth in New Category Sales for BAT

    Significant Growth in New Category Sales for BAT

    Photo: BAT

    BAT reported revenue of £12.18 billion ($16.89 billion) for the six months that ended June 30, down 0.8 percent (up 8.1 percent on an adjusted basis) from the comparable 2020 period. Revenue from new categories increased by more than 50 percent to £883 million. Profit from operations totaled £4.91 billion, down 3.7 percent (up 5.4 percent on an adjusted basis) from the comparable six months a year earlier.

    “This has been an exciting period of growth in New Categories, with New Category constant currency revenue up by 50 percent in the first half,” said BAT CEO Jack Bowles in a statement. “We added 2.6 million consumers—our highest ever increase—to our noncombustible product consumer base, to reach 16.1 million. This demonstrates our accelerating transformation driven by our multi-category portfolio, with continued key market share gains in all three New Categories.

    “We are building strong, global brands of the future with Vuse, Velo and Glo. These are underpinned by industry leading multi-category consumer insights and science, with increasing digitalization. We have invested a further incremental £346 million in the first half, funded by continued value growth from combustibles and expect to reach our £1 billion Quantum savings target 12 months early. We have now increased our savings target to £1.5 billion by 2022.

    “Our rapid growth in New Categories is driving significant scale benefits and 2021 is shaping up to be a pivotal year in our journey towards ‘A Better Tomorrow.’”

  • BAT Highlights Vuse’s Carbon Neutral Status

    BAT Highlights Vuse’s Carbon Neutral Status

    Photo: BAT

    BAT’s Vuse e-cigarette celebrated its position as the first global carbon neutral vape brand with a carbon neutral voyage down the Thames in London, home of BAT’s global headquarters.

    The event was organized to underscore Vuse’s commitment to carbon neutrality and its various supporting initiatives. For instance, in utilizing substantial sea freight as part of its global supply chain, BAT aims to move the majority of Vuse’s global shipments by sea freight by the end of next year.

    “I am proud of the way that Vuse is playing its part in delivering A Better Tomorrow by reducing its impact on the environment,” said Kingsley Wheaton, chief marketing officer at BAT, in a statement.

    “Vuse is a leading global brand with ever-increasing scale, which allows us to drive global supply chain efficiencies and effectiveness.  I am delighted that, in Vuse, we are demonstrating the kind of purposeful behavior expected from leading brands of the world.  This commitment will play a part in our vision of A Better Tomorrow becoming a reality.”

    Research conducted on behalf of BAT’s R.J. Reynolds Vapor Co. subsidiary found that nearly half (46 percent) of consumers said they would prefer using a vapor product from a company that was successful in becoming carbon neutral.  A brand’s environmental priorities and impact are increasingly important to consumers in considering their purchasing choices, with nearly a third of consumers broadly viewing a brand more favorably based on their environmental initiatives, according to Reynolds.

    Vuse’s carbon neutrality status and ambition to increase sea freight is part of BAT’s bigger ambition to become an environmentally sustainable vape brand with initiatives including:

    • An ambition to transport the majority of international shipments by sea by the end of 2022 and 100 percent of its consumable pods by end of 2023.
    • A global device and pod collection scheme; through the “Drop the Pod” campaign, approximately 200,000 pods were collected since the start of the pilot in 2020
    • Cutting single use plastics from packaging. The “Cut the Wrap” campaign has saved 100 tons of plastic or the equivalent of four million plastic bottles in 20202

    BAT’s sustainability efforts and commitment have received notable independent recognition. These include inclusion in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), a MSCI rating of BBB and CDP A List status for climate change.