Author: Staff Writer

  • New Jersey Prioritizes Smokers for Vaccine

    New Jersey Prioritizes Smokers for Vaccine

    Photo: torstensimon from Pixabay

    Smokers in New Jersey are now eligible to receive the Covid-19 vaccine, along with other groups that the state considers to be at risk for severe complications from the virus, reports The New York Times. Those groups include those 65 and older and younger people with underlying health problems, including cancer, heart conditions and diabetes.

    The announcement came a day after the Trump administration told states to expand eligibility and to quickly use existing vaccine or risk losing future allocations.

    New Jersey’s decision to immediately adopt all of the recommendations by the Centers for Disease Control and Prevention (CDC) for priority vaccination has prompted a backlash because it puts these groups ahead of some essential workers, including teachers.

    On Friday, Governor Philip Murphy called criticism that smokers were jumping the line a “cheap shot” and a “false narrative,” noting that the state is hewing closely to CDC guidelines.

    The CDC includes smoking on a list of medical conditions that it recommends be prioritized in state vaccination programs because of the higher risk of serious complications from Covid-19. But to date, only one other state, Mississippi, appears to have authorized vaccinations for people younger than 65 based solely on the criterion that they smoke cigarettes.

    New Mexico and Texas have made people with other high-risk medical conditions eligible for the vaccine, but not smokers. Alaska, Maine, Massachusetts and North Carolina include smokers, but not until later phases.

    As of Friday, New Jersey had administered less than half of the 658,800 doses of vaccine shipped to the state, according to the CDC, a rate that lags behind most other states in the Northeast.

  • David Kessler to Help Lead Vaccine Drive

    David Kessler to Help Lead Vaccine Drive

    Photo: Dimitri Houtteman from Pixabay

    U.S. President-elect Joe Biden has chosen David Kessler, the ex-head of the Food and Drug Administration (FDA), for a senior role in the new administration’s efforts to boost the availability of Covid-19 vaccines, reports Reuters.

    A pediatrician and lawyer who headed the FDA under presidents George H.W. Bush and Bill Clinton, Kessler will be chief science officer of the administration’s Covid-19 response.

    In the tobacco industry, Kessler is best known for his efforts to assert FDA authority over tobacco.

    During his tenure, the FDA attempted to regulate tobacco products as “delivery devices for the drug nicotine” to bring tobacco products under FDA jurisdiction. Tobacco companies challenged the rules all the way to the Supreme Court and won (FDA v. Brown and Williamson Tobacco Corp.).

    The Supreme Court ruled that “Congress has clearly precluded the FDA from asserting jurisdiction to regulate tobacco products.”

    Kessler’s wish to see tobacco regulated by the FDA was eventually granted by Congress in June 2009 through the bipartisan passage of the Family Smoking Prevention and Tobacco Control Act.

    Kessler is not the first tobacco foe to join the Biden administration’s Covid-19 response team. In December, Biden appointed Bechara Choucair—a board member at the Campaign for Tobacco-Free Kids—as vaccinations coordinator.

    Biden has vowed to get 100 million Covid-19 vaccine doses injected into Americans in his first 100 days in office.

  • FDA Starts Enforcement Against Illegal ENDS

    FDA Starts Enforcement Against Illegal ENDS

    Photo: Jhvephotos | Dreamstime.com

    The U.S. Food and Drug Administration (FDA) has sent its first set of warnings letters to manufacturers of electronic nicotine delivery devices (ENDS) that did not submit premarket tobacco applications by the Sept. 9 deadline.

    On Jan. 15, the agency issued warning letters to 10 firms who manufacture and operate websites selling ENDS products, specifically e-liquids, advising them that selling these products, which lack premarket authorization, is illegal, and therefore they cannot be sold or distributed in the U.S.

    Per court order, applications for premarket review for certain deemed new tobacco products on the market as of Aug. 8, 2016—including e-liquids—were required to be submitted to the FDA by Sept. 9, 2020. For companies that submitted applications by that deadline, the FDA generally intends to continue to defer enforcement for up to one year pending FDA review, unless there is a negative action taken by the FDA on the application.

    The FDA plans to post a list of products for which the agency has received applications; however, before making such a list available, the FDA is verifying certain information about these products so that publication of a list complies with federal disclosure laws.

    Stephen Hahn

    “The premarket application process ensures that new tobacco products, including many already on the market, will undergo a robust scientific evaluation by the FDA,” said FDA Commissioner Stephen M. Hahn in a statement. “Scientific review of new products is a critical part of how we carry out our mission to protect the public—especially kids—from the harms associated with tobacco use. In addition to the important premarket scientific review, prioritizing enforcement against those who violate the law by selling unauthorized products is how we help protect public health.”

    The 10 firms receiving warning letters are Little House Vapes; Castle Rock Vapor; Dropsmoke; Perfection Vapes; CLS Trading; Session Supply Co.; Coastal E-Liquid Laboratory/GC Vapors; Dr. Crimmy; CMM Capital LLC; and E-Cig Barn.

    Mitch Zeller

    “These warning letters are the result of continued surveillance and internet monitoring for violations of tobacco laws and regulations,” said Mitch Zeller, director of FDA’s Center for Tobacco Products. “We want to make clear to all tobacco product manufacturers and retailers that the FDA is keeping a close watch on the marketplace and will hold companies accountable for breaking the law.”

    The FDA has requested responses from each firm within 15 working days of receiving the letter detailing how each company intends to address the agency’s concerns.

  • The Blinc Group Raises $1.5 million

    The Blinc Group Raises $1.5 million

    Photo: Tobacco Reporter archive

    The Blinc Group has raised $1.5 million in bridge financing. The company will use the proceeds to expand its team, develop new materials and vape technologies, and open an office in Toronto.

    Arnaud Dumas de Rauly

    “The Blinc Group puts quality and safety at the forefront of its vape technology and since day one, that dedication to the highest standards has brought us the endorsement of institutional investors focused on the cannabis industry,” said Arnaud Dumas de Rauly, CEO and co-founder of the Blinc Group, in a statement.

    “Our team navigated 2019’s vape crisis helping set standards and advise regulators on testing and compliance, and last year the company saw our best quarter yet amid the Covid-19 pandemic as the industry learned the benefits of safety and traceability.”

    In 2020, Blinc Group more than tripled its orders with more than 330 percent year-on-year growth, showcasing the technology company’s ability to scale and flourish in a difficult regulatory landscape. The group attributes much of its success to the emphasis it places on safety and compliance.

    “We began underwriting our initial investment in Blinc near the onset of the so-called vape crisis in 2019 and it became quickly apparent that the team’s experience within the vape technology space and its focus on quality, traceability and customer service would see them through and enable them to emerge as a market leader,” said Andi Goldman, managing member and co-founder of the Equitas Partners Fund.

    “We have watched the Blinc team over the past few years as they have grown their business and dedicated their focus to safety and traceablity within the vape hardware sector,” said Michael Mitgang, managing director and co- founder of the WGD Opportunity Fund. “Blinc’s reputation for putting these important factors first has secured customer wins with some of the leading cannabis operators in North America.”

    “The vape category is one of the primary revenue drivers in every market and satisfies the demands of some of the most committed cannabis consumers. Providing high-quality products is a must for any brand looking to win and retain loyal shoppers,” said 7thirty’s Director of Research, Ben Richardson.

     

  • SFATA Elects Board of Directors

    SFATA Elects Board of Directors

    Image: SFATA

    The Smoke-Free Alternatives Trade Association (SFATA) has announced the results of its recent board elections. In a press release, the vapor industry organization said Robert Arnold (Saffire Vapor) will return as board treasurer. Also returning are board president and CEO April L. Meyers (Northeast Vapor Supplies), board vice president Dave Morris (Vape Gravy) and acting board secretary Lindsey Stroud (Taxpayers Protection Alliance).

    New to the board this year are Taylor Cage (Trace/Verify) and Shaun Casey (FlavourArt).

    “Our board of directors is comprised of a diverse team of leaders committed to providing strength, longevity and stability to the vapor business community,” said Meyers. “We are excited to channel Taylor and Shaun’s skills, expertise and energy into furthering SFATA’s mission. We are delighted they are participating at SFATA’s board level.”

    Cage and Casey join SFATA as the association prepares to roll-out the trace/verify segment of its Responsible Industry Network (RIN) program. The program’s goals are keeping its member businesses viable and flavored vapor products in the hands of adult consumers, according to the release.

    The 2021 SFATA board will work alongside Executive Director Mark Anton. The board will decide on the association’s annual budget and select its officers during a two-day meeting before March.

  • Cigar Market to Reach $17.3 Billion by 2027

    Cigar Market to Reach $17.3 Billion by 2027

    Photo: Tobacco Reporter archive

    Amid the Covid-19 crisis and the looming economic recession, the global cigar market is projected to reach $17.3 billion by the end of 2027, expanding at a compound annual growth rate (CAGR) of 1.3 percent over, according to a new report published by Research and Markets.

    An unusual period in history, the coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. According to the authors of the report, the cigar market will be reset to a new normal which going forwards in a post Covid-19 era will be continuously redefined and redesigned.

    The United States is forecast to readjust to a 0.7 percent CAGR. Within Europe, Germany will add more than $21.8 million to the region’s size over the next seven to eight years. In addition, more than $33.6 million worth of projected demand in the region will come from other European markets.

    In Japan, the cigar segment will reach $1.1 billion by the close of the analysis period. Amid the growing push for decoupling and economic distancing, the changing relationship between China and the rest of the world will influence competition and opportunities in the cigar market.

    Against this backdrop and the changing geopolitical, business and consumer sentiments, the world’s second largest economy will grow at 3.2 percent over the next couple of years and add approximately $620 million in terms of addressable market opportunity.

     

  • Dutch Urged to Ditch Planned Flavor Ban

    Dutch Urged to Ditch Planned Flavor Ban

    Flavored nicotine products
    Photo: Laboko – Dreamstime.com

    A recently proposed ban on vaping flavors in the Netherlands will endanger public health, according to the Independent European Vape Alliance (IEVA).

    Around 65 percent of adult vapers in Europe use fruit or sweet liquids. According to the IEVA, the variety of flavors is one of the most important reasons for smokers to switch to e-cigarettes and for vapers not to go back to smoking.

    Ignoring this fact, the Dutch State Secretary Paul Blokhuis announced a ban on all e-cigarette flavours except tobacco flavors in the Netherlands, to discourage youth smoking.

    “This measure risks very negative consequences for public health and tobacco harm reduction,” the IEVA wrote in a statement. “With only tobacco flavors left, vapers’ threshold to relapse on tobacco smoking dangerously lowers.”

    A public consultation on the plan will run until Jan.19, 2021. The vast majority of the comments so far come from vapers and scientists who reject the government’s plan.

    According to the IEVA, the Dutch plan ignores important facts:

    • The number of young people in the Netherlands who have ever tried e-cigarettes has decreased by a quarter in the past five years.
    • Only 0.2 percent of 14-16 olds in the Netherlands vaped regularly in 2019.
    • 8 percent of all Dutch users of e-cigarettes come from smoking.

    “Removing flavours will not affect the rates of youth cigarette use,” said Riccardo Polosa, professor of internal medicine and specialist of respiratory diseases and clinical immunology at the University of Catania. “But, it will certainly reduce the number of options available for those adults who seek to quit smoking for good and find flavoured e-cigs effective.”

    The IEVA also expressed concern about the impact of the Dutch flavor ban on the debate at the Conference of the Parties to the World Health Organization’s Framework Convention on Tobacco Control, which is scheduled to take place in November in The Hague.

    “Implementing the ban on flavorings could have negative effects on the conference,” cautioned IEVA Chairman Dustin Dahlmann. “Rather, COP9 should pay attention to the topic of harm reduction through e-cigarettes, so that the number of smokers worldwide could be significantly reduced”

    “Flavour is not a gateway to youth uptake of smoking. No evidence substantiates the association between vaping flavours and subsequent smoking initiation. We call on the Dutch government to drop this plan. There are no winners in a flavor ban, only losers.”

  • Vector Names Lampen Chief Operating Officer

    Vector Names Lampen Chief Operating Officer

    Photo: Jakub Jirsák | Dreamstime

    Vector Group has appointed its current Executive Vice President Richard J. Lampen to the additional position of chief operating officer (COO) and to serve as a member of the board of directors, effective immediately.

    “On behalf of the board and management team, we are pleased to announce Dick’s new roles at Vector Group,” said Howard M. Lorber, president and chief executive officer of Vector Group, in a statement. “With his broad executive experience and deep operational understanding of the company, having served in a variety of senior leadership roles for Vector Group and its affiliates for more than 25 years, Dick is a valuable addition to our board and a natural fit to be COO.”

    “I am honored and delighted to work alongside Howard and the rest of our very talented team as we continue serving our dedicated employees, partners and investors,” said Lampen. “I look forward to advancing Vector Group’s goals on behalf of all of our stakeholders.”

    Lampen served as president and chief executive officer of Ladenburg Thalmann Financial Services from September 2006 to February 2020, and as chairman from September 2018 until February 2020, when the company was successfully sold for $1.3 billion to Advisor Group, a portfolio company of Reverence Capital Partners. From October 2008 until October 2019, Lampen served as president and chief executive officer and was a member of the board of directors of Castle Brands prior to its acquisition by Pernod Ricard. Vector Group held an approximate 10 percent interest in Ladenburg Thalmann Financial Services and an approximate 8 percent equity interest in Castle Brands.

    Before joining Vector Group in 1995, Lampen was a managing director at Salomon Brothers and a partner at law firm Steel Hector & Davis in Miami, Florida. Lampen received a Bachelor of Arts degree from Johns Hopkins University and a Juris Doctorate from Columbia Law School.

  • Foundation for a Smoke-Free World Sued

    Foundation for a Smoke-Free World Sued

    Photo: Michal Kalasek | Dreamstime.com

    A former employee of the Foundation for a Smoke-Free World claims she was fired for raising concerns about the organization’s ties to the tobacco industry, reports Bloomberg Law.

    Lourdes Liz, who worked at the Foundation as social media director from February 2018 until February 2020, says she was terminated after objecting to activities “designed to increase the profits of and to do the bidding of Philip Morris International and Altria Group.”

    In a lawsuit filed on Jan. 13 in the U.S. District Court in Manhattan, Liz maintains that the group’s close ties to the tobacco industry violate its status as an independent nonprofit organization.

    The Foundation, which has received millions of dollars in funding from PMI, has met fierce opposition from health groups. Shortly after its creation in 2017, the World Health Organization (WHO) said it would not interact with it, citing a fundamental conflict of interest between the tobacco industry and public health.

    The Foundation is led by Derek Yach, an anti-smoking crusader who, while working at the WHO, was the primary architect of that agency’s Framework Convention on Tobacco Control.

  • Scandinavian Launches Distribution Firm

    Scandinavian Launches Distribution Firm

    Photo: STG

    Scandinavian Tobacco Group (STG), the parent company of General Cigar Co. and other cigar companies, will launch a new cigar distribution company, the Forged Cigar Co., next month, reports Halfwheel. This company will serve brick-and-mortar retailers.

    Scandinavian Tobacco will be splitting its catalog of cigar brands between General Cigar Co. and the new company. Forged Cigar Co. will operate independently from General Cigar Co.

    Forged Cigar Co.’s portfolio will include Bolivar (U.S. distribution), Chillin’ Moose, Cofradia, Diesel, La Gloria Cubana (U.S. distribution) and Partagas (U.S. distribution). General Cigar Co.’s portfolio will include CAO, Cohiba (U.S. distribution), Hoyo de Monterrey (U.S. distribution), Macanudo, Punch (U.S. distribution) and other brands.

    Forged Cigar Co. could also distribute third-party brands not owned by General Cigar Co.

    Forged Cigar Co. will be led by Sean Hardiman, who has worked for General for the last decade and is now the national sales manager for Forged. Forged Cigar Co. will receive “independent marketing and customized programming” initiatives, according to Scandinavian Tobacco.

    “When we announced last year our withdrawal from the annual PCA Show, we committed to investing funds back into the premium cigar category,” said Regis Broersma, senior vice president of North American Branded and Rest of World division for Scandinavian Tobacco, in a press release.

    “Today, with the Forged Cigar Company, we are doing just that with a multimillion-dollar investment in the brick-and-mortar channel. In having two separate sales companies, we will have more feet on the street to better serve the needs of STG’s retail partners and the ability to be more agile in supporting our current and future brands.”