Author: Marissa Dean

  • ANDS Creates 99 Percent Recyclable Vape

    ANDS Creates 99 Percent Recyclable Vape

    Fadi Maayta | Image: Tobacco Reporter archive

    ANDS has created a disposable vape that is 99.29 percent recyclable, according to Waste Experts, reports UKVIA.

    Slix is constructed of an outer casing made of 100 percent recyclable high-grade cardboard with a biodegradable silicone mouthpiece and end piece.

    “While the analysis carried out by Waste Experts suggests that our single-use vape is highly recyclable, we will continue to work toward zero waste,” said Marina Murphy, senior director of scientific and medical affairs at ANDS. “We aim to build a high rate of recyclability into all our products by using high-quality recyclable materials and simple construction that allows for highly efficient dismantling. This contributes to a fast, efficient overall recycling process, which reduces waste management costs. This in turn helps to keep product prices competitive, creating a win-win for the environment and adult consumers who value our products.”

    “We’re very much on a journey, and by the end of this year, we hope to launch a 100 percent recyclable and recoverable version of Slix, which will reduce the tonnage of waste going to landfill even further,” said Fadi Maayta, president of ANDS. “If these single-use vapes are restricted or banned over environmental fears as is being talked about in some circles—smokers could lose what many believe to be a very convenient, accessible and compelling alternative to conventional cigarettes.”

    ANDS is partnering with Waste Experts to create a recycling program.

  • Kaival Releases Details of Acquired Patents

    Kaival Releases Details of Acquired Patents

    Image: Tobacco Reporter archive

    Kaival Brands Innovations Group provided additional details of its recently acquired extensive patent portfolio from GoFire as it looks to expand its current product offerings to explore near-term and long-term revenue opportunities, according to GlobeNewswire.

    In the near term, Kaival Brands expects to seek third-party licensing opportunities in the cannabis, hemp/CBD, nicotine and nutraceutical markets as a means of monetizing its new patents. Longer term, the company believes it can utilize the acquired patents to create innovative and market-disruptive products for its growing base of adult consumers, including patent protected vaporizer devices and related hardware and software applications.

    The consideration for the purchased patents consisted primarily of Kaival Brands equity securities, consisting of common stock, newly designated Series B Preferred Stock and a warrant to purchase common stock. Importantly, in certain key aspects, the equity consideration was structured in a forward-looking manner with valuations or exercise prices struck at premiums to the current market price of Kaival Brands’ common stock. The weighted price per share of the common stock issued and the common stock underlying the Series B Preferred Stock was $1.53 per share on the May 30 closing date, accompanied by warrants with exercise prices ranging from $3 and $6.

    Included in the acquired technologies are patented systems and methods that are designed to overcome common issues regarding reliability and consistent dispensing over the entire life of a cartridge or reservoir as well as improvements to the vaporizing chamber to ensure complete vaporization with minimum residue.

    The acquired patent portfolio includes the following: Bluetooth Child Safety App and Mechanical Cartridge Protection; Controlled Delivery; Flavor Delivery and Experience to Last Puff; Leak Proof Design and Removal of Cutting Agents; Authentication System/Counterfeit Protection; Dry Puff Protection; 510 and Pod Compatibility; Product Remaining Indicators; and MHRA Requirements.

    The GoFire patent portfolio includes 12 existing patents and 46 pending applications with novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia, Canada, China, the EPO (European Patent Organization), Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.

    The acquired assets are housed in Kaival Labs, a wholly owned subsidiary of Kaival Brands, which develops new branded and white label products and services in the vaporizer and inhalation technology sectors.

  • Philter Gets $1 Million Investment

    Philter Gets $1 Million Investment

    Image: Tobacco Reporter archive

    Philter Labs secured an AUD1 million ($675,376) investment from Atayf Investments and a warrant for an equivalent investment by the end of 2023, according to PR Newswire. Btomorrow Ventures, the venture capital arm of BAT, originally led the financing round. The allocated funds will further propel R&D initiatives within the company. They will also back the introduction of a heat-not-burn device designed specifically for organic substrates with the ability to eliminate secondhand smoke.

    Atayf Investments is the Family Office investment group associated with Charlie (Khalil) Shahin AO, managing director of Peregrine Corp. Peregrine operates the On the Run brand of service stations and convenience stores in South Australia; this privately owned Australian company has a broad reach. It also manages Smokemart and GiftBox tobacconists vape and other retail stores throughout Australia.

    Charlie (Khalil) Shahin AO, CEO of Peregrine, said, “We are excited about our investment in Philter. Their unique technology and products address consumer trends in vaping and smoking. I’m especially impressed with the caliber of the management team and their vision to address the secondhand smoke issues.”

    Philter holds nine granted utility patents and has filed over a dozen additional patents for advanced technologies that miniaturize the filtration footprint. These patents enable Philter technology to be ubiquitous within any vaping device and any form factor for combustibles.

    Philter CEO Christos Nicolaidis added, “We are thrilled about this strategic investment from Atayf Investments Pty Ltd. This relationship expands the global reach of our current products in areas where Peregrine has a strong retail footprint. We are excited about advancing our proprietary technologies that will be very disruptive to the smoking and vaping markets that are growing at 14–27 percent CAGR, based on independent industry research.”

  • Farmer Group Calls for Lower Tobacco Tax

    Farmer Group Calls for Lower Tobacco Tax

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    Mushfiq Ali Khan, president of Anjuman-e-Kashtkaran, a farmers’ group, has asked the government of Pakistan to reduce the federal excise duty on cigarettes so the regulated industry can resume purchasing from tobacco farmers, ensuring timely payments and safeguarding farmers’ livelihoods, reports the Pakistan Observer.

    A recent hike in tobacco excise taxes has prompted legal tobacco companies to cut production, driving down demand for leaf and prompting some farmers to sell their leaf on the black market. Farmers are not getting fair returns on their crops due to a decrease in sales in the legal industry, according to Khan. High taxes and a decline in sales, he said, have led the regulated industry to limit tobacco purchases.

    “On the other hand, the illicit cigarette manufacturing industry offers farmers unfair prices for their tobacco, with no guarantee of timely payment. Faced with this predicament, farmers are left with no choice but to rely on the illegal cigarette industry,” he said.

  • Debt Ceiling Could Stress FDA Budget

    Debt Ceiling Could Stress FDA Budget

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    The proposed debt ceiling budget could stress the U.S. Food and Drug Administration’s budget, according to Inside Health Policy.

    The legislation’s nondefense federal funding cap makes it harder for programs like the FDA’s budget to get funding increases, and it could threaten some agencies’ existing funds, according to Steven Grossman, director of the Alliance for a Stronger FDA. “This is never a good situation for agencies whose mission and responsibilities keep expanding each year, as is the case with FDA,” he wrote.

    The Fiscal Responsibility Act of 2023 caps nondefense federal spending at $704 billion for the next two years. According to Grossman, after taking out funding for Veterans Affairs medical care and appropriations adjustments, the remaining nondefense funds are about $637 billion, which is roughly unchanged from fiscal 2023.

    There is still room to determine how much funding can be specifically allocated to the FDA, though, according to Grossman, despite the FDA’s funding being limited by the macro-budgetary levels determined by the debt ceiling.

    “FDA’s mission and responsibilities are incredibly consequential and visible,” he wrote. “It needs resources to protect public health and safety and to set standards for products that encompass 20 percent of all consumer spending (about $2.7 trillion).”

    The House GOP’s FDA funding bill cleared the Appropriations FDA-agriculture subcommittee last month; it would provide $6.6 billion in total funding with $3.5 billion in flat discretionary funding.

  • 80 Percent of Tobacco Packs Carry Warnings

    80 Percent of Tobacco Packs Carry Warnings

    Image: Tobacco Reporter archive

    Public health warnings are on 80 percent of tobacco product packaging in Cambodia, according to the National Centre for Health Promotion (NCHP) at the Ministry of Health (MoH), reports Khmer Times.

    The MoH has made health warnings mandatory on packaging, said Chhea Chhordaphea, director of the NCHP, adding that they appear on 82 percent of tobacco products.

    “We see that most tobacco companies have fully complied with the requirement to place health warning messages on product packaging. We found from a survey that 97 percent of the public support a ban on smoking in workplaces and public places,” she said.

    “We will increase taxes on the excise stamps for cigarette packs, and if the ministry team finds any products that lack excise stamps or warning labels, then we will take action and impose fines,” said Bou Vong Sokha, deputy secretary-general of public finance management at the Ministry of Economy and Finance.

  • Kingsway in Talks Over AIR Stake Sale

    Kingsway in Talks Over AIR Stake Sale

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    Kingsway Capital has begun meetings with big tobacco firms as the company prepares to sell its stake in Dubai-based tobacco business Advanced Inhalation Rituals (AIR), reports Reuters.

    Kingsway is the majority owner of AIR, and the company has held talks with potential investors, including BAT and Japan Tobacco, as part of a dual-track process where a seller pursues a sale and an initial public offering at the same time. 

    Al Fakher, which manufactures flavored molasses for shisha pipes, is AIR’s most valuable business. An investment in AIR would provide access to the shisha and e-shisha market in the Middle East and elsewhere. 

  • ATR Signs Letter to Stop Tobacco Prohibitions

    ATR Signs Letter to Stop Tobacco Prohibitions

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    Nine advocacy groups, including Americans for Tax Reform, have signed a letter supporting proposed legislation that would deny the U.S. Food and Drug Administration funds to implement its plans for nicotine levels and menthol flavors.

    Sections 768 and 769 of the Fiscal Year 2024 Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations bill ensure that no funds provisioned by the bill can be used to implement a maximum nicotine level for cigarettes, to prohibit menthol flavors for cigarettes or cigars or other special flavors for cigars.

    The letter notes the impact that tax hikes and bans can have on smuggling and organized crime and warns about a possible expansion of the black market. It also advocates for educating consumers to better empower them to make educated choices.

    “The protections included in Sections 768 and 769 of this bill would prevent overreach by regulators that would have significant negative impact on taxpayers, farmers, retailers, consumers, manufacturers, state and local governments and supply chains across the country,” the letter states.

  • Affordable Vapes May Temper Black Market

    Affordable Vapes May Temper Black Market

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    A study conducted by researchers at Johns Hopkins University suggests that if regulators limit the nicotine content of cigarettes, people may turn to illegal sources to buy full-nicotine cigarettes, reports Filter. However, the availability of affordable vape products could deter this shift to the illicit market.

    The study found that nicotine vapes, which are believed to be less harmful than cigarettes, played a crucial role in people’s choices. When vapes were priced lower than illegal cigarettes, they were purchased to a greater extent, according to the study. Restricting nicotine content alone could lead to an increase in black market cigarette purchases, but making e-cigarettes more affordable could reduce combusted cigarette consumption, the authors suggested. The study emphasizes the importance of regulating vaping products alongside reducing nicotine in smoked tobacco.

    The findings suggest that a mandate requiring all cigarettes to have low nicotine content may be unnecessary if the right policy environment is established, including favorable taxation and diverse smoke-free alternatives.

  • Former STMA Manager Under Investigation

    Former STMA Manager Under Investigation

    Image: Tobacco Reporter archive

    Wu Yi, a former deputy general manager of China Tobacco Yunnan Industrial Co., was placed under investigation “on suspicion of serious violation in law and discipline,” reports Caixin Global.

    The investigation was announced by the Communist Party’s Central Commission for Discipline Inspection. This is the latest development in China’s campaign to crack down on corruption among government officials.