Author: Marissa Dean

  • UKVIA Exposes Illicit Vape Sellers

    UKVIA Exposes Illicit Vape Sellers

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    Authorities have been alerted to more than 100 retailers suspected of underage and illicit vape sales through the U.K. Vaping Industry Association’s (UKVIA) nationwide Be Vape Vigilant initiative, according to a UKVIA press release.

    The ongoing campaign, which started at the end of 2023 and is supported by Trading Standards, the Association of Convenience Stores and the wider retail sector, was created to encourage legitimate businesses and the general public to help cut off youth sales and the supply of illegal products at source by turning in those retailers and wholesalers believed to be flouting the law.

    A new online platform has been established as part of the initiative, through which suspected rogue traders can be reported. The UKVIA then passes the information on to the relevant authorities who will use the intelligence in their ongoing efforts to crackdown on rogue traders. To date, 136 reports have been made through the platform.

    “Trading Standards Services rely on intelligence to target enforcement effectively and efficiently, so we are pleased that the Be Vape Vigilant reporting line is being used to let us know about people selling illegal vapes and/or selling vapes to children,” said Kate Pike, lead officer for vaping at Trading Standards. “The more intelligence the better from our point of view”

    Of those businesses flagged, more than half were nonspecialist retailers including convenience stores, corner shops, off-licenses and market stalls. One of the sellers reported through the platform was a dessert shop and one was a private residence.

    Almost 20 percent of all reports related exclusively to the underage sale of vaping products, while 47 percent related exclusively to illicit and noncompliant products. Overall, more than one-third of the reported businesses were believed to be guilty of both.

    Other key data includes: 77 percent of the retailers were physical sellers while 23 percent were online; 84 percent of the retailers were located in England, 9 percent in Scotland and 7 percent in Wales; Swansea was the area with the highest number of reports; at least two of the retailers have previously been reported to Trading Standards and the police; and eight of the retailers were suspected of engaging in other illegal activity such as the supply of drugs and the underage sale of tobacco.

    “I was pleased to see so many people have engaged with the campaign in the short time since its launch and thank all those who have used the Be Vape Vigilant platform to sound the alarm on retailers suspected of underage and illicit vape sales,” said UKVIA Director General John Dunne. “Many of the reports actually came from legitimate vape retailers, which makes clear that unscrupulous sellers are not welcome and will not be tolerated by our industry.

    “The data gathered from the first batch of reports supports the link between youth access to vaping and illicit products with many of the retailers believed to be engaging in both. Further, the sheer number of reports, paired with the fact that two of the retailers have already been reported to the authorities, reinforces the need for greater resources and support for Trading Standards.”

    Dunne added: “The UKVIA is currently involved in a major industry-wide consultation to develop a framework for vape retail and distributor licensing—due to be presented to parliamentarians in February—which could generate millions of pounds in additional funding for enforcement and further bring the hammer down on rogue retailers.

    “While 100 reports is an excellent first milestone, this only represents a step on the journey to creating a more responsible and accountable sector—which is why the UKVIA will be ramping up this campaign moving into 2024 and is calling on those within and outside the industry to be vape vigilant.”

    As part of the Be Vape Vigilant initiative, the UKVIA has also created a range of downloadable materials, which businesses can display in-store and online to mobilize the general public in helping to bring cowboy retailers and wholesalers to justice.

  • PMI Clarifies Zyn Marketing Practices

    PMI Clarifies Zyn Marketing Practices

    Philip Morris Global Chief Communications Officer Moira Gilchrist has clarified in a video presentation PMI’s marketing practices and facts relating to Zyn nicotine pouches, which recently came under fire by Senate Majority Leader Chuck Schumer.

    Schumer asked the U.S. Food and Drug Administration and the Federal Trade Commission to take action on PMI’s marketing practices and the health effects of Zyn, calling the product the next “trend in addiction for teens.”

  • Schumer Wants Crackdown on Zyn

    Schumer Wants Crackdown on Zyn

    Image: Tobacco Reporter archive

    U.S. Senate Majority Leader Chuck Schumer is calling for a crackdown on Zyn nicotine pouches, arguing that the product will be the next “trend in addiction for teens,” according to USA Today. He has asked the U.S. Food and Drug Administration and the Federal Trade Commission to take action on the company’s marketing practices and the product’s health effects.

    “Amid federal action against e-cigs and their grip on young people, a quiet and dangerous alternative has emerged, and it is called Zyn,” said Schumer. “I am delivering a new warning to parents because these nicotine pouches seem to lock their sights on teens and use social media to hook them.”

    “The amount of nicotine is highly addictive, and much more needs to be done to understand and communicate the health risks for young people,” Schumer said.

    Zyn’s parent company said that it both meets and exceeds industry regulations.

    “The FDA remains concerned about any tobacco product that may appeal to youth,” said Brian King, director of the FDA’s Center for Tobacco Products, in response. “The FDA uses a variety of surveillance tools to monitor the evolving tobacco product landscape and to identify emerging threats to public health.”

    King noted that the FDA closely monitors “those in the supply chain for compliance with federal law.”

    “As always, we are committed to holding those accountable who sell unauthorized tobacco products, including those labeled, advertised and/or designed to encourage youth use,” said King.

    The Federal Trade Commission did not comment, noting that it “does not publicly speculate on external requests for investigations or comment on letters from member[s] of Congress,” according to USA Today.

  • 22nd Adjourns Meeting for Shares Proposal

    22nd Adjourns Meeting for Shares Proposal

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    22nd Century Group conducted its Jan. 24, 2024, special meeting of stockholders and adjourned the meeting solely with respect to Proposal 2 set forth in its Definitive Proxy Statement previously filed with the Securities and Exchange Commission. Proposal 2 is a proposal to increase the number of authorized number of shares of common stock. All other proposals were passed at the special meeting with strong support from stockholders.

    “We sincerely appreciate the support of our stockholders on these important items as we work to swiftly effect a turnaround of the business,” said Larry Firestone, chairman and CEO of 22nd Century, in a statement. “In the seven weeks since I joined the company, we have fully focused the business on our tobacco operations, implemented aggressive operating cost reductions and extended our balance sheet runway. We are also actively working to improve our tobacco business margins and increase the returns from those assets as we work to make this company self-sufficient, including efforts to increase the channels and channel support for VLN sales.

    “While I am pleased with the progress on these and other initiatives we have underway, Proposal 2 is still critically important to ensuring that the company can address any strategic needs as we bridge to self-sustaining operations as quickly as possible. We hope that the adjournment will enable additional shareholders to vote for this proposal, or those who may have voted against to reverse their vote and support our efforts to complete the turnaround process.”

    The company has adjourned the special meeting solely with respect to Proposal 2 to provide its stockholders additional time to vote on Proposal 2. The special meeting will resume with respect to Proposal 2 at 11:00 a.m. Eastern Time on Feb. 15, 2024. The reconvened meeting will be held at 11988 El Camino Real, Suite 400, San Diego, California, 92130. The record date for determining stockholders eligible to vote at the special meeting will remain the same. To date, more than 48 percent of all shares outstanding as of the record date have voted in favor of the proposal.

    Stockholders as of close of business on Dec. 6, 2023, the record date for the special meeting, who have not yet voted are encouraged to vote over the internet at http://www.proxyvote.com/.

  • Lung Association Urges Menthol Ban

    Lung Association Urges Menthol Ban

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    The American Lung Association’s State of Tobacco Control 2024 Report highlights the impacts of tobacco use and urges the White House to finalize rules on the impending menthol ban.

    The 22nd annual State of Tobacco Control report evaluates state and federal efforts to eliminate tobacco use and save lives with proven-effective tobacco control laws and policies. This year’s report highlights the public health perils of menthol tobacco use and the failure of the White House to finalize the rules to end menthol cigarettes and flavored cigars in 2023, according to an American Lung Association press release.

    “It is unacceptable that after decades of research and proven tobacco control efforts, tobacco use is still the leading cause of preventable death and disease in the U.S. Tobacco use is responsible for 480,000 deaths each year, including 45,000 Black individuals,” said Harold Wimmer, president and CEO of the American Lung Association, in a statement.

    “Right now, President Biden can take action and save lives if he finalizes the rules to end the sale of menthol cigarettes and flavored cigars. Menthol cigarettes make it both easier to start and harder to quit by reducing the harshness of the smoke and cooling the throat. Once these rules are final, fewer people will start smoking, millions will begin their journey to quit, and lives will be saved.”

    The federal section of the report highlights the failure of the Biden White House to finalize rules to end the sale of menthol cigarettes and flavored cigars in December 2023, the continued delay of the U.S. Food and Drug Administration to complete its review of premarket tobacco product applications and the beginning of meaningful enforcement against illegal e-cigarette products.

    In the State of Tobacco Control report, the American Lung Association identified four key actions for the Biden administration and Congress to take in 2024 that will help ultimately eliminate the death and disease caused by tobacco use: The White House must finalize the rules to end the sale of menthol cigarettes and flavored cigars; the FDA must finalize premarket review and work with other federal agencies to remove all illegal e-cigarettes and other flavored products from the marketplace; Congress must maintain or increase current funding for the Centers for Disease Control and Prevention’s Office on Smoking and Health; and Congress must pass H.R. 4775, the Helping Tobacco Users Quit Act, bipartisan legislation giving more people access to the resources they need to quit tobacco.

    The 2024 State of Tobacco Control report grades the federal government in five areas: federal regulation of tobacco products—grade C; federal coverage of quit smoking treatments—grade D; level of federal tobacco taxes—grade F; federal mass media campaigns to prevent and reduce tobacco use—grade A; and federal minimum age of sale for tobacco products to 21—incomplete (the FDA is overdue in finalizing the Tobacco 21 regulations as required by statute, which is why it earns an “incomplete”).

    The 2024 State of Tobacco Control report grades states and the District of Columbia in five areas that have been proven to prevent and reduce tobacco use and save lives: strength of smoke-free workplace laws—16 states and Washington, D.C., earned “A” grades; ending the sale of all flavored tobacco products—45 states earned “F” grades; funding for state tobacco prevention programs—41 states and Washington, D.C., earned “F” grades; level of state tobacco taxes—31 states earned “F” grades; and coverage and access to services to quit tobacco—20 states and Washington, D.C., earned “A” or “B” grades.

  • Parkside Restructures Management

    Parkside Restructures Management

    Image: Parkside

    Parkside is restructuring its management team.

    The company has appointed Robert Adamson as chairman and Paula Birch as managing director. The flexible packaging innovator’s Asian operations will now be headed by Paul Vaughan, who has been made general manager of Parkside Asia, while Joshua Swann joins the board as technical director to lead on NPD and innovation.

    Laura Haggerty will assume the role of BAT account director and head of client services, and Julia O’Loughlin will become group marketing manager.

    Staci Bye has returned to a customer-facing role as sales account manager while Jonathan Steele is beginning a two-year secondment to the company’s Asian site to bolster its technical capabilities and support its growing business in the region.

    “Thanks to the hard work and passion of the entire Parkside team, we bucked industry trends and enjoyed a hugely successful 2023,” said Birch in a statement. “Our business has grown significantly in recent years as demand for sustainable flexible packaging innovations continues to increase, and it’s important that our business capacity and capabilities grow along with it.

    “This restructure will help us harness the momentum of our recent success so we can continue to deliver market-leading innovations and the best possible service to our customers across the world.”

  • Kenya Relaxes Pouch Health Warnings

    Kenya Relaxes Pouch Health Warnings

    Image: Tobacco Reporter archive

    The Kenyan government has relaxed nicotine pouch health warning requirements following BAT’s statement that it would pull investment from a new factory in the country’s capital, according to The Guardian.

    The government agreed to let BAT sell Velo nicotine pouches with significantly smaller health warnings and without mentioning the presence of potentially cancer-causing toxicants, according to letters between BAT and the Ministry of Health, which were obtained by Examination, an investigative news outlet. The ministry agreed to let BAT sell Velo with a small warning stating, “This product contains nicotine and is addictive.”

    Current regulations in the country state that labels must cover one-third of the package and include information about health hazards.

    Kenya is one of BAT’s key “test markets” in low-income and middle-income countries, according to company financial presentations. The company plans to make Kenya its base of operations for a rollout of Velo across southern and eastern Africa.

    In 2021, BAT requested its product be allowed to be sold with a warning label covering 10 percent of the packaging. In a letter, Crispin Achola, BAT Kenya’s managing director, told Mutahi Kagwe, the cabinet health secretary, “our resumption of factory operations and the sale of Lyft [Velo’s previous name] in Kenya hinges on the provision of appropriate text health warnings.”

    “Your positive consideration of this request will allow us to operationalize our factory,” the letter said.

    In response, the Ministry of Health agreed to allow a warning label covering 15 percent of the front of the package.

    Velo is the only nicotine pouch legally available in Kenya, though other brands are smuggled in illegally.

  • Juul Supports Tighter Youth Access Rules

    Juul Supports Tighter Youth Access Rules

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    Juul Labs wants tighter e-cigarette regulations to help stave off youth demand while also making the industry safer overall.

    In a recent open letter addressed to the Florida House of Representatives and Senate, the company urged lawmakers to endorse legislative proposals to regulate the marketplace for legal nicotine vaping products in Florida.

    The pending proposals require state regulators to develop a directory listing of certified nicotine product manufacturers and certified nicotine products. They also subject retail and wholesale nicotine product dealers to inspections or audits; prohibit sale, shipment or distribution of certain nicotine products into this state; provide criminal penalties; require entities that seek to sell nicotine products or dispensing devices to obtain a wholesale nicotine products dealer permit; provide that permit holders must consent to inspections and searches without warrant; and provide for seizure and destruction of unlawful nicotine products, according to Florida’s Senate.

    In the letter, Juul Labs said it “is on a mission to transition the world’s billion adult smokers away from combustible cigarettes, eliminate their use and combat underage usage of our products,” according to media reports.

    The letter highlighted what the company described as extensive efforts to ensure product quality and compliance with regulatory standards. The letter also emphasized significant investments in product development, regulatory science and manufacturing quality controls.

    Penned by Juul Labs’ regional director for state government affairs, Jennifer Cunningham, the letter states that the company wants a better-regulated market. Cunningham cited measures implemented by Juul Labs, including supporting “Tobacco 21” laws to raise the legal age for tobacco product sales to 21, restricting vaping flavors to tobacco and menthol, limiting product purchases per transaction and promoting retail partner compliance through ID checking and technology advancements.

    However, despite these efforts, the letter points out the challenges posed by a burgeoning illegal vape market in Florida, with the state being the primary destination for sales of illicit vapor products in the U.S. The vape maker also expressed readiness to assist Florida legislators in formulating policies that foster a well-regulated market for legal vapor products.

  • Zimbabwe Farmers: Start 2024 Market Early

    Zimbabwe Farmers: Start 2024 Market Early

    Image: Tobacco Reporter archive

    Tobacco farmers in Zimbabwe have called for an early start to the 2024 marketing season to prevent potential storage losses, reports The Herald. The Tobacco Industry and Marketing Board (TIMB) has indicated that it is still going through farmers’ representations and still licensing buyers.

    Currently, 50 percent of the harvested irrigated tobacco is ready for marketing.

    The TIMB is consulting stakeholders on suggested dates for opening the 2024 marketing season, according to Chelesani Tsarwe, TIMB public affairs officer. The board is expected to meet at the end of January to deliberate on licensing buyers.

    “To ensure a good harvest, growers are encouraged to apply fertilizers correctly, undertake weed, disease, pest and sucker control,” said Tsarwe. “They must ensure they have good, functional and efficient curing facilities and safeguard proper handling of cured leaves to avoid losses.”

    “More than 50 percent of the irrigated crop has been harvested and cured, so as farmers, we have suggested that floors be opened from Feb. 15 going onward,” said George Seremwe, Zimbabwe Tobacco Growers Association chairman. “Another reason for this consideration is inadequate storage facilities for some of our farmers as well as the need to raise cash from the sale of a few bales to meet labor payments.”

    According to Seremwe, tobacco profitability is being compromised by high interest rates charged by loan sharks.

    “Farmer representatives have indicated that an early start to the season would help them clear loans, reduce borrowing incidences, reduce risks of storing graded tobacco on farms and generate foreign currency early to positively stimulate the market,” said Rodney Ambrose, Zimbabwe Tobacco Association CEO. “Farmer viability remains a major concern as costs of production continue to increase against static floor prices.”

    “We don’t want to open the market and stop due to inadequate volumes, so floors should open when there is a lot of tobacco ready for the market,” said Monica Chinamasa, Zimbabwe National Farmers Union president, who said the marketing season should open after Easter rather than earlier. “The price matrix is generated from the auction floors, so it’s critical to have large tobacco volumes in the auctions for effective price discovery.”

    “The government shifted [the] tobacco seedbed destruction date to Jan. 15 to allow planting to continue, and this should also result in dates of opening of floors set for early or mid-April,” said Victor Mariranyika, Tobacco Farmers Union Trust president, who is also in favor of a late start to the season.

  • Russian Duma Supports Move to Digital Labels

    Russian Duma Supports Move to Digital Labels

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    Russia’s State Duma Budget Committee supports a bill that regulates the procedure for collecting excise taxes and their administration following the transition to digital labeling of tobacco and nicotine-containing products, according to Interfax.

    “The development of the bill is due to the fact that from March 1, 2024, the requirements for labeling tobacco and nicotine-containing products will change. We are abandoning paper stamps and moving to using digital stamps for labeling,” Deputy Minister of Finance Alexey Sazanov said.

    “The term accounting and control special mark is being introduced. This is essentially the bar code that will be applied to the pack. Certain control requirements are being specified—the tax base cannot be less than the corresponding volume of production—tobacco or nicotine-containing products, fixed in state information system,” Sazanov said.

    Regarding the appearance of the digital mark, Sazanov said, “Instead of a physical excise stamp, there will be a barcode, like on medicines, on dairy products. There will be an identification sign.”