Author: Taco Tuinstra

  • Stinchfield honored as ‘senior-level leader’

    Stinchfield honored as ‘senior-level leader’

    Photo: USTC

    Cheryl Stinchfield, regional account manager at Premier Manufacturing, was recognized as a senior-level leader at the U.S. National Association of Convenience Stores’ annual convention, U.S. Tobacco Cooperative announced on its website.

    Organized by Convenience Store News, the Top Women in Convenience program honors individuals across retailer, distributor and supplier businesses for outstanding contributions to their companies and the industry at large.

    The 10th class of Top Women in Convenience included 86 established and emerging female leaders in the convenience store industry. The honorees were selected from a pool of nominees based on their innovative corporate initiatives, extraordinary financial and strategic accomplishments, astute problem-solving acumen, exceptional performance, mentorship work and selfless charitable participation, along with other attributes that go above and beyond the call of duty.

    At the award ceremony of more than 450-plus people, Stinchfield was accompanied by Oscar House, Russ Mancuso, Steve Lucas, Mark Schueller and Irene Stinchfield.

  • Bonus Content: Brent Taylor

    Bonus Content: Brent Taylor

    Brent Taylor, managing director of consumer marketplace insights and innovation at Altria Client Services, emphasized that his company wanted to make sure that the adult consumer’s voice is heard and embedded in all of Altria’s decision-making regarding regulation, innovation and science discussions for tobacco harm reduction (THR). The latter, he pointed out, rests on three pillars: youth smoking prevention, cessation support and switching adult smokers to reduced-risk products. The U.S. currently has 42 million adult tobacco users, of whom 28 million smoke combustible cigarettes, 6 million consume smokeless tobacco, 8 million smoke cigars, and 14 million use e-cigarettes.

    According to an Altria survey, over 50 percent of adult smokers are interested in switching to a less hazardous alternative. To understand the barriers that keep many of them from changing, Taylor, a former smoker himself who had successfully switched to smoke-free products six years ago, in 2021 set up Project 2021, a deep ethnographic research study that followed 21 consumers for 21 days on their journey away from cigarettes. Participants were asked to catalogue their behavior via video diaries daily, and study investigators had check-ins with them routinely to understand how this journey was going for them. After three months and six months, respectively, there were follow-up interviews to examine the long-term impact that short experience had on consumers.

    After six months, 16 of the 21 participants had switched completely to smoke-free alternatives. The balance significantly reduced cigarette consumption—down, for example, from one pack per day to one or two cigarettes. “It’s all about the mindset,” Taylor said. “Consumers will only be able to make this change if they want to make this change.” The survey also showed that external factors can influence smokers on this journey—having had a bad day, for instance, would make them go back to using a cigarette. Becoming smoke-free was liberating and opened new opportunities for participants, allowing them to move into a smoke-free apartment or date nonsmokers, for example.

    The study made clear that a support system was required in the journey to becoming a nonsmoker and that the experience was emotional and complicated, with many ups and downs through their daily life, all of which affected their success. “There’s no single way that each of these consumers approach this journey,” Taylor explained. “To accelerate THR, we need to recognize that smokers are not a monolith but represent a vast cross section of adults, different races and incomes, different genders. We need to make sure that we identify which types of clusters exists among that population so that we can design messaging and products that really cater to these different types of people.”

    Altria also looked at usage moments of cigarettes. “Smokers use cigarettes either to detach from the world to take a break or to engage with other people,” Tayor said. “If you layer these two areas, there are barriers and motivators for switching across each. We need to think of a portfolio of products to address the needs of consumers throughout the day. The tobacco space is starting to behave like the beverage category, with a proliferation of options for consumers. They might choose a different product first thing in the morning versus throughout their workday versus in the evening.”

    To help them transition to reduced-risk alternatives, he added, smokers are very much in favor of THR over prohibitionist methods. They also want options in the marketplace and choose different products, also throughout the day. Misperceptions of nicotine, however, are widely spread, with 80 percent of adult smokers believing that nicotine is a carcinogen. “The key is to always start with the consumer and build empathy with adults who smoke. The highest form of knowledge is empathy. It allows us to step into the shoes of others so we can create real change.”

  • HTPs: EU Rulemaking Challenged in Court

    HTPs: EU Rulemaking Challenged in Court

    Photo: nmann77

    The European Commission will face a legal challenge over its attempt to restrict the sale of heated tobacco products (HTPs).

    On Nov. 3, 2022, the European Union published a directive banning flavored HTPs throughout the union. The ban, which covers all flavors except tobacco, officially took effect Nov. 23, 2022. EU member states were given until July 23, 2023, to transpose the rule into national legislation.

    When the Ireland did so, it was challenged in the Irish High Court by PJ Carroll & Co. and Nicoventures Trading. The nicotine companies argued that the European Commission had exceeded the powers delegated to it under tobacco products legislation approved by the European Council and the European Parliament. According to them, the Commission made its decision based on political grounds rather than legal grounds.

    In his judgment, Irish High Court Justice Cian Ferriter noted that the Commission had effectively prohibited “a category of tobacco product which was new on the market, which had not been in existence at the time of the enactment of the Tobacco Products Directive in 2014 and which had not been the subject of separate policy and health assessments…”.

    “It is at least arguable that this involved a political choice which was only open to the EU legislature and not to the Commission,” Ferriter said.

    According to Eureporter, the Dublin court will now refer the case to the European Court of Justice in Luxembourg.

    The nicotine companies and the Irish High Court are not the first to raise concerns about regulatory overreach. When the Commission adopted its directive in 2022, four EU member states objected that the directive involved “essential elements reserved for the European legislators.”

  • 22nd Century Launches Public Offering

    22nd Century Launches Public Offering

    22nd Century Group is offering 10 million shares of its common stock and warrants to purchase up to 20 million shares of common stock at a combined public offering price of $0.525 per share and accompanying warrants.

    The warrants have an exercise price of $0.525 per share, are immediately exercisable and will expire five years following the date of issuance. The offering is expected to close on or about Oct. 19, 2023, subject to the satisfaction of customary closing conditions.

    In an announcement, 22nd Century Group said it expects the offering to generate approximately $5.25 million before deducting placement agent’s fees and other offering expenses. The company expects to use the net proceeds of the offering for general corporate purposes.

  • Cannabis And Nicotine Vape Markets Diverging

    Cannabis And Nicotine Vape Markets Diverging

    Photo: Seth Michael

    The cannabis vaping and tobacco vaping industries in the U.S. are on contrasting paths, largely shaped by regulatory dynamics, according to an article published by Bloomberg. While tobacco vaping faces increased restrictions on nicotine levels, flavored products and youth usage, the cannabis vape sector benefits from limited regulation, making it a significant player in the marijuana market.

    The U.S. Food and Drug Administration’s ban on flavored vape products in particular has been detrimental to the nicotine vape sector, impacting prominent brands like Vuse Alto, which was recently the subject of an  FDA marketing denial order.

    In comparison, cannabis vapes are growing rapidly, with an estimated $6.8 billion in sales for the year. These numbers might underestimate the market due to the influence of illicit cannabis sales, which are hard to track. However, as cannabis legalization progresses state by state, questions arise about when this sector might face more regulations.

    Some suppliers to the nicotine vape business see substantial potential in the cannabis sector, as the U.S. vape parts market alone is estimated to be a $700 million opportunity. Meanwhile, the rise of disposable vapes also poses a challenge, as concerns about waste and youth appeal lead to potential regulatory hurdles.

  • Researcher To Study Policies and Health Disparities

    Researcher To Study Policies and Health Disparities

    Photo: Virginia Tech

    Roberta Freitas-Lemos of the Fralin Biomedical Research Institute at Virginia Tech university has received $680,000 award from the National Cancer Institute to study the interplay of tobacco policies and health disparities.

    While taxes are widely used to reduce tobacco use, they can also exacerbate socioeconomic disparities. Freitas-Lemos is testing a tax proposal designed to reduce tobacco dependence and tobacco-related disparities in cigarette smokers from diverse socioeconomic backgrounds. 

    She plans to develop a new tax proposal based on the abuse liability of tobacco products and investigate its effects on purchase behavior using the Experimental Tobacco Marketplace, a tool developed at the Fralin Biomedical Research Institute. Her proposal uses an abuse liability assessment model, which predicts the likelihood of tobacco addiction or harmful use.

    Freitas-Lemos will recruit a diverse group of tobacco users who will use an experimental account to purchase tobacco and replacement therapy products through the marketplace. By adjusting the product mix and pricing, scientists can better predict purchase behavior. 

    “My long-term research goal is to become an independent researcher investigating the differential impact of policies on tobacco initiation, use and cessation among individuals who experience tobacco-related cancer disparities,” Freitas-Lemos said in a statement.

    Freitas-Lemos studied psychology at the Pontifical Catholic University in Sao Paulo, Brazil, before earning a doctorate from the University of Brasilia. She joined the Fralin Biomedical Research Institute as postdoctoral fellow in 2019.

  • Panel: Youth Use

    Panel: Youth Use

    Youth use is everyone’s responsibility. It’s also the name of the GTNF panel that focused on how to balance preventing youth use with helping combustible cigarette smokers move toward less risky nicotine products. The panel’s moderator, Stacy Ehrlich, partner at Kleinfeld Kaplan and Becker, encouraged panelists to debate whether abstinence is a realistic or appropriate goal when attempting to combat youth use.

    “Hopefully, speakers will address that and whether and how to communicate with youth and children about relative risks and progress. I think an interesting question is: Are youth an unintended population for these communications?” said Ehrlich, referring to the U.S. Food and Drug Administration’s acknowledgment that e-cigarettes are less harmful than combustible cigarettes. “Should we be communicating with underage individuals about consumer risk?”

    All the panelists were given the opportunity to make a short presentation. Jasjit Ahluwalia, professor of behavioral and social sciences and professor of medicine at the Center for Alcohol and Addiction Studies at the Brown University School of Public Health and Alpert School of Medicine, said that tobacco addiction is a pediatric disease and noted that many diseases resulting from tobacco use were effectively human caused, such as chronic obstructive pulmonary disease, as 95 percent of cases were the result of tobacco use.

    He also stated that youth use of tobacco and nicotine was unethical as young people are uninformed consumers. However, he noted that communicating risk to this group was complicated. He said that tobacco prevention campaigns are key.

    “This is something that we know [is] important to effectively educate youth,” said Ahluwalia. “I’m mindful of the importance of the issue of spillover … this is, again, a careful area where I think it’s important that we’re mindful of what the impact is on the intended population and mitigating risk for the unintended population, which in this case, I believe is adult smokers that you want to make sure that they’re not scared away from using an e-cigarette that could potentially be beneficial for them to transition completely from combustibles.”

    Ahluwalia also highlighted the vast amount of misinformation that had been communicated through anti-vaping/smoking campaigns, noting the role of the media in misrepresenting the science behind vaping products. He stated that the industry needed to focus on innovating safer and better products. He also called for the FDA to approve new smoking cessation medications. Lastly, Ahluwalia stated that a goal of zero youth use was unrealistic and unreasonable.

    Brian King, director of the FDA Center for Tobacco Products, explained that youth prevention continued to be a critical part of the FDA’s portfolio since nine out of 10 adult smokers started smoking below the age of 18. He noted that the youth were using a variety of different products, with the use of e-cigarettes being particularly prominent.

    “Youth prevention is a key component of FDA’s portfolio … we do see kids using a variety of different products. But right now, the focus is primarily on e-cigarettes,” explained King. “We’ve seen an evolution within even that product class as well, which I think is important for us to consider as we talk about what the inherent risks of these products are, particularly when it comes to dependency. That said, although we’ve seen declines in e-cigarette use, which again, we’ve noticed, is a good thing, among the kids who are currently using e-cigarettes, we’re seeing increased signs of dependency.”

    King said the FDA is held by the standard of being “appropriate for the protection of public health.” This is not like the other centers at the FDA, such as the Center for Drug Evaluation and Research (CDER), which has a “safe and effective standard.” In therapeutics, the CDER wants products to be safe for people to use but also effective at treating the ailment.

    “When it comes to tobacco products, the U.S. Congress has given us appropriate for the protection of public health, where we have to weigh the benefits and the risks. That said, the risks are typically focused on youth initiation. And we have made decisions based on that,” King told attendees. “The primary reason you’re seeing a variety of negative actions that have been taken on e-cigarettes is because of the prominent youth use of these products. It certainly is possible to mitigate that risk. For example, we know that youth have very little [interest in] tobacco-flavored e-cigarettes, which are the products that have been authorized to date because that benefit of adults has been able to outweigh the risk of kids.”

    Colin Mendelsohn, general practitioner and founding chair of the Australian Tobacco Harm Reduction Association, said that current vaping policy is largely driven by fears over youth vaping. The scientific evidence of vaping is being overlooked. He stated that children should not vape or smoke; however, he acknowledged, it is inevitable that some will. Mendelsohn argued that most youth vaping was experimental, with frequent vaping being rare.

    “I think policy around e-cigarettes is largely driven by youth [and] flavor. And I think it should be driven by the evidence, not by emotion and moral values,” he said. “What I’m going to talk about is actual evidence, or at least the best evidence we have today. Kids shouldn’t vape or smoke. They shouldn’t be using alcohol or useless drugs. Of course, they do lots of things they shouldn’t do.”

    Mendelsohn said his research showed that only 3 percent of children who had vaped were frequent vapers, with half of those also being smokers. This evidence, he said, showed that vaping was not a gateway to smoking. He said that the opposite was true, and vaping was diverting kids away from smoking combustible cigarettes.

    “I think we all agree that vaping is not a significant gateway to smoking,” said Mendelsohn. “If there were a significant gateway, we would expect to see smoking rates going up. And of course, they’re going in the opposite direction. In the U.S., when vapes became popular, smoking rates continued to decline. In fact, they declined faster than they ever had compared to the historical period before 2013 since vaping became available.”

    Stefanie Miller, vice president of external engagement at Juul Labs, said one of the reasons why she wanted to join Juul Labs is that she gets to say that Juul has a problem with youth use. “We don’t need to skirt around that. So I’m going to talk to you about what this company has done to successfully deal with youth using the product,” she said. “We took what we consider a three-pillar approach … it has been a productive initiative that we’ve taken …. It’s limiting underage appeal, restricting underage access and enforcing against third parties, enforcing against illicit products.”

    Miller said Juul Labs is also using technology and innovation to help in the company’s fight against youth use. However, Juul Labs is also looking at how initiatives that are put in place to prevent youth use impact adults making the switch from combustible cigarettes. “We’re also considering what these interventions would do to make it potentially more difficult for an adult smoker to have access to a less harmful product, which is not the goal of our company,” said Miller. “We’re trying to walk this really careful line, both from the innovation but also the point-of-sale intervention along these three lines.”

    Many of the questions coming from the audience were directed at King concerning the FDA premarket tobacco product authorization process. For example, Fadi Maayta, the CEO and co-founder of Alternative Nicotine Delivery Solutions (ANDS), a Dubai-based vaping product manufacturer, asked King to explain why the agency does not do more to incentivize law-abiding players. The FDA’s current penalty framework, he argued, penalizes good and bad players alike.

    King said he understood Maayta’s frustration. There are numerous good players in the vaping industry that don’t have the issues of youth uptake, he acknowledged. The reality, however, is that the U.S. Congress wrote the Tobacco Control Act and prescribed very specific processes that the agency is required to do by law, said King.

    “That said, the intent is not to penalize everyone … but we do have to follow the law in terms of implementing the regulations that have been required by us. And that includes a premarket tobacco product process and a rigorous scientific assessment …. We also have to enforce the law, and we are a free market paradigm. So there’s no safe harbor. If you don’t have authorization, your product is subject to enforcement compliance,” explained King. “That said, are there opportunities to streamline those processes? Absolutely. And that’s what we’re looking at. There are efficiencies that I think we can gain by looking at our processes to make it more streamlined moving forward.”

  • Panel: Innovating Products for the Future

    Panel: Innovating Products for the Future

    Discussing the future of innovation in nicotine products is complicated. The industry is innovating at lightning speed, especially in batteries and atomization. However, manufacturers don’t often want to discuss innovations in progress because competition in the next-generation nicotine-delivery segment is fierce. It’s not uncommon for a company to launch a new innovative design only to see its IP stolen and used in counterfeit products.

    During the panel “Innovating Products for the Future,” moderator Eve Wang, executive director of Smoore International and vice president of Shenzhen Smoore Technology Co., questioned five industry experts about how they imagine the future of the vaping industry. The participants agreed that innovation would continue boosting the harm reduction potential of next-generation nicotine-delivery products. Surprisingly, they all willingly shared interesting insights into new product innovation.

    Tao Cui, director of innovation, strategy and compliance at Innokin Technology, said that future vaping products will likely be more individualized, more efficient and more intelligent. He also said that products will continue to become less harmful. He said the heating element is especially an area that will see more innovation.

    “In a perfect scenario, you can control the temperature as low as possible and also precisely control it. And, if you have a much, much less harmful substance, we combine both together, then we have a less harmful product,” he said. “In the future, I would say the products will be more individualized because no one product fits 1 billion people. In the future, your product may adapt to your habits. The product may know if you need more [puffs] in the morning, in the afternoon, today or tomorrow.”

    Cui outlined some potential solutions for sustainability-related issues, including the use of research and development. He proposed that countries that have successfully controlled youth usage could offer insight; they could accomplish this by better regulating flavor names and packaging.

    James Kuang, chief scientist and head of the Life Science Institute at ICCPP, parent to Voopoo vaping products, stated that the innovation of products is needed to balance user experience, harm reduction and environmental protection. “Yes, we should develop some [better batteries] and [e-liquid bases] for that. “We talk about the effective battery …. Can we do something for our environment by developing different [e-liquids]? I say if we can develop some new type of [e-liquid base] … for example, can we use some nature-sourced alcohol? …. Another solution, I think, is a water-based solution. In my opinion, a water-based [solution] may be the best product for the future.”

    Fadi Maayta, president and co-founder of Alternative Nicotine Delivery Solutions (ANDS), stated that the next stage of innovation should be aimed at protecting consumers—especially nonsmokers and ex-smokers—and youth. He noted that it was the responsibility of the industry to ensure it was on the right path to responsible growth. He said that artificial intelligence (AI) could play for both the industry and regulators by helping to better analyze data concerning consumers and product use.

    “I know many companies that invested in applications to link [AI] to the device to tell the consumer how many puffs they took, what’s the health risk. All these apps failed. I don’t see consumers really using it, to be realistic,” said Maayta. “It will help consumers to get more data. It will help companies and factories [know where] to locate and know how to get the right product for the consumers through using that engine but also externally for the regulators and policymakers to get data about these products. It might help in tracking as well, track and trace for the product.”

    When it comes to eco-friendly products, Maayta claimed that a rational vision of environmental sustainability involves four distinct pillars. The first pillar is the product. Manufacturers should use the right elements … cardboard, biodegradable silicon and biodegradable plastics. The second pillar is showing that your claims of eco-friendliness are provable—that they can be substantiated.

    “If you want to claim that your product is recoverable and recyclable, and your product can be recycled to 99 percent, whatever—you [had] better be careful. You are in a very controversial industry, and every word will be tracked,” he said. “You better [be able] to substantiate every word, every percentage, everything you say about the recyclability and the probability of the product.”

    The third pillar is that if you market an eco-friendly product, you need to have a program to support recycling. The collection of these products is important. “Make it simple … because consumers need simplicity,” he said. “You used to have a cigarette and a lighter. That’s it. You are giving them an electronic device. They don’t want to have a headache there.”

    The fourth element is regulation. Maayta said regulators should be involved in investing in approving sustainable products and possibly incentivizing recycling programs. He criticized manufacturers that aggressively market products that appeal to youth. He criticized regulators for not doing more to remove the “bad players” from the market because it’s leading to good manufacturers being replaced by the black market.

    Cherry Pan, managing director of consumer and marketplace insights at Altria, said that as the industry moves toward more “eco-friendly” products, the term needs to be better defined. Pan said that the environment should be a concern for all manufacturers. She also suggested that manufacturers could play a more innovative role in the design of eco-friendly products.

    “First, how to define eco-friendly … that means you’re 100 percent recycled or 50 percent recycled or 30 percent? …. Or does it mean that we use vaping products that are less harmful than cigarettes? This also means it’s eco-friendly,” Pan explained. “We will make about 150 to 200 new products every year [not necessarily that make it to market] with our army engineers. We have about 150 engineers. So we also must make products which we [consider] eco-friendly because we can recycle it, maybe 70 [percent] to 80 percent. We use some degradable materials. The percentage we use is higher [than many other products]. We want to make removable batteries.”

    Ryan Selby, CEO of Generative AI Solutions and executive chairman at The Modern Nicotine Co., said that innovation will not bring about a one-size-fits-all solution for consumers. It’s going to take a comprehensive approach to create choices for consumers through innovation. However, he doesn’t know what the next best thing is.

    “I do think we need to keep our eyes on the future and look at there’s some big changes coming down in terms of the virtual and augmented reality experiences,” Selby said. “In the oral space, looking at opportunities for creating more personal nicotine experiences that have a lower [third-party] impact as well as lower the impact on the environment.”

    Selby also said that AI could be beneficial in providing consumer insight and in helping find innovative ways to restrict youth access. He said AI can aid the nicotine industry by helping to reduce harm by analyzing data. Regulators may even be better able to understand the consumer experience.

    “I think this is a tremendous opportunity for AI in this space to help feed in massive amounts of data set and tease out some of these interactions between devices … looking at opportunities for combining substances and devices in a way that can reduce the harms associated with [use],” said Selby. “I think there is tremendous promise with large data sets and the ability of AI to tease out some hidden secrets in there that can help us to continue moving in the right direction.”

  • New Proposal to Tackle Illicit Trade

    New Proposal to Tackle Illicit Trade

    Photos: Niroworld

    Joey Salceda, the chairman of the Philippine House of Representatives Ways and Means Committee, has proposed new legislation to tackle the illicit trade in cigarettes, reports the Philippine News Agency.

    Among other things, the measures would address smuggling through the country’s economic zones, leakage of tobacco declared for export or transshipment, and the manufacture of fake cigarettes.

    The illegal tobacco market has flourished in the Philippines recently. The government expects to miss out on PHP60.6 billion ($1.06 billion) in revenue this year if the illicit tobacco trade continues on its current trajectory.

    Salceda noted that 2022 tax collections declined by 7.8 percent to PHP160.4 billion and that the government missed its 2022 target of PHP191.6 billion by PHP31.2 billion.

    Salceda said that illicit cigarettes are “easy to come by” in every trade segment. “There is no challenge to buying these brands,” he was quoted as saying. “And they sell at as low as one-fifth the price of licit cigarettes. The legitimate ones don’t stand a chance. Even fakes of premium brands are becoming easier to come by. From the same online shopping sites, fakes that are half the price and supposedly of the same flavor are sold openly.

    “In the meantime, the revenue base will continue to shrink, and there is a chance that prevalence might actually increase as a result of cheaper illicit alternatives. This is a serious national crisis. For better or for worse, our advocacy of higher taxes played a role in making the illicit sector more attractive. We have a responsibility to help solve this problem,” he said.

  • Netherlands: No Vapor Tax Before Elections

    Netherlands: No Vapor Tax Before Elections

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    The Netherlands will not impose an excise tax on vapor products before the November 2023 elections, reports DutchNews.nl, citing De Telegraaf.

    The news source added that even if the Netherlands received EU approval to impose a vapor product excise tax, the process would take several years to complete.

    Although this current government did not work toward creating a vapor product excise tax, Junior Health Minister Maarten van Ooijen said that he would encourage the next cabinet to move ahead on a “national tax on e-cigarettes.” Van Ooijen added that such a tax would be “in the interests of public health.”

    High cigarette prices have assisted smokers to move toward vapor products in recent years. However, the current cabinet focused on prohibiting flavored e-liquids and online vapor product sales to combat rising youth rates of vapor product usage.

    “We need to take action against vapes as soon as possible to protect our children, as other EU countries have done,” Van Ooijen said.

    The EU is expected to revise its Tobacco Products Directive in 2025.