Author: Taco Tuinstra

Video: TGA Boss Admits Problems with Australian Model
The head of Australia’s Therapeutic Goods Administration (TGA) has acknowledged shortcomings in the country’s vaping regulations, according to tobacco harm reduction activist Colin Mendelsohn.
Writing on his website, Mendelsohn says TGA boss John Skerrit “has finally admitted the disastrous and predictable failure of Australia’s vaping regulations,” which among other things require vapers to obtain a doctor’s prescription to buy nicotine-containing e-cigarettes.
During questioning in Australia’s Senate, Skerrit acknowledged not only that there has been a dramatic increase in youth vaping but also that large numbers of low-quality products are entering the country and are being sold on the black market, according to Mendelsohn.
In addition, Skerrit noted that only 1,353 out of 130,000 registered doctors have applied to be authorized e-cigarette prescribers, and less than 10 percent of adult vapers have a prescription for nicotine.
According to Mendelsohn, Skerritt had previously promised a review of the regulations, which were introduced on Oct. 1, 2021, at three, six and 12 months. Instead, he wrote, the TGA and government had a secret meeting of unnamed vaping experts.
Mendelsohn said it is likely that further restrictions and enforcement will be recommended by “the experts” to double down on their de facto prohibition. “This will only lead to greatly reduced legal vaping and more deaths from smoking,” he wrote.
November 18, 2022
Russia Developing New Excise Technology

Photo: lite
Russian authorities are developing technology for digital excise tax on tobacco, reports Interfax, citing comments made by State Secretary and Deputy Finance Minister Alexei Sazanov during a meeting with foreign businesses at the American Chamber of Commerce in Russia.
“It is assumed that the tax service will automatically calculate tax liabilities when products are released into circulation as based on data that is in the information systems for labeling tobacco and beer,” said Sazanov. “This should further reduce the number of disputes between taxpayers and the tax service.”
Further digitalizing and transferring tax calculation functions to the tax authorities are part of a drive to simplify administration, according to Sazanov. “This has already been implemented for the majority of property taxes,” he added.
November 18, 2022
Framtiden Tenders its Swedish Match Shares

Photo: Swedish Match
Framtiden Management Co. has tendered its Swedish Match shares to Philip Morris International despite reservations about the takeover.
“As a Swedish Match shareholder since 2003, I believe that this deal does not make sense for long-term shareholders,” said the Framtiden Partnerships managing member Dan Juran in a statement. “Through a press release and white paper, my partner Chris Anderson and I shared our view in the hope other shareholders would see the merits of our position. Philip Morris has since acquired nearly 86 percent of shares.
“Failing our preferred outcome, an independent public company, our intention was to continue on the Swedish Match journey as a minority shareholder of a majority-owned public company. Unfortunately, during the current offer ending Nov. 25, or soon thereafter, we believe the odds are high Philip Morris will attain the 90 percent threshold necessary to delist the shares and commence a compulsory offer. Given a likely choice between tendering now or owning private shares for a short period before a compulsory offer, we have regretfully tendered our shares.”
In May, PMI bid about $16 billion for Swedish Match. Swedish Match’s board of directors recommended shareholders accept the offer, but some investors, including Elliott Management Corp. and Framtiden, objected, saying the bid undervalues their firm.
In October, PMI increased the price of its bid to SEK116 per share from the SEK106 per share offered in May. Swedish Match’s board of directors advised shareholders to accept PMI’s revised offer.
Elliot Management Corp. then accepted the sweetened bid, contributing to PMI’s 86 percent shareholding.
Under Swedish law, PMI needs 90 percent of shareholders to agree to the deal in order to get full control over the company.
The Framtiden Partnerships owned over 14.5 million Swedish Match shares, representing about 1 percent of outstanding shares.
November 18, 2022
Experts Urge Holistic Addiction Policies

Photo: YarikL
National addiction policy makers and experts met in Brussels on Nov. 15 to discuss the Czech presidency of the Council of the EU and the best way to tackle various addictions, including alcohol, tobacco, gambling and digital technologies, at the EU level. The consensus is that the priority should be a holistic, compassionate and realistic approach to help those in need.
“A world without drugs, tobacco, alcohol is not realistic and perhaps not healthy for people’s mental health. Extreme regulations have little effect on addictive behavior,” national drug coordinator Jindrich Voboril was quoted as saying in a press note. “What we can effectively do is to minimize the impact. Addiction policy should give adults access to less risky addictive products and let people make their own choices.”
The roundtable, organized by The Institute for Rational Addiction Policies, also discussed the perspective on tackling addiction and the role that EU agencies such as the EMCDDA should play in this regard.
“The European Parliament has sent a clear signal in its report on the Europe’s Beating Cancer Plan by stressing the importance of realistic, evidence-based policies. The European Commission should listen to the experts and take a rational and science-based approach,” said MEP Radka Maxova.
Viktor Mravcik, Head of IRAP’s Science Department, presented examples from the Czech Republic, where a comprehensive harm reduction approach to alcohol and tobacco dependence has led to success. In the discussion that followed, Ales Rod, member of the National Advisory Committee on the Economy and Head of the Centre for Economic and Market Analysis, presented his recent study on best practices in managing tobacco dependence policies in several Member States, including the Czech Republic and Sweden.
“If we conclude that a drug-free world is not possible, we should consider the implications of regulation. I also call on the upcoming Swedish presidency of the Council of the EU to address these issues as a matter of priority and ultimately help Europeans to tackle their addictions. After all, Sweden has done a lot in this area,” added Swedish psychologist and expert on addictions Karl Fagerstrom.
November 18, 2022
Philippines Tax Service Sets ENDS Floor Prices

Photo: MilletStudio
The Philippine Bureau of Internal Revenue (BIR) has set a floor price for heated, vapor and other electronic nicotine-delivery devices, reports ABS-CBN News.
The floor price for a 0.7 mL pod of nicotine is PHP131.04 ($2.29). For 1.8 mL and 1.9 mL nicotine salts, the minimum prices are PHP306.88 and PHP318.08, respectively.
Meanwhile, the floor price for a 15 mL bottle of conventional freebase nicotine is PHP207.2. A bottle that contains 30 mL of classic nicotine has a PHP352.8 minimum price.
According to BIR East NCR director Edgar Tolentino, the new guidelines will help the economy and protect the health of minors.
“BIR will have exclusive jurisdiction over taxpayer registration, setting the products’ floor price, drafting and publication of revenue regulations covering vape items,” Tolentino said.
He also said the newly appointed BIR Commissioner Romeo Lumagui Jr. has a mandate to crack down on illicit vape traders.
“We need to support the plans of the commissioner; one thing is to focus on illegal vape sellers because if smuggling persists, we will be losing huge revenues from vape products,” he said.
Since 2019, the government has collected about PHP15.3 billion in vape taxes.
November 18, 2022
Vapor Group Files Amicus Brief

Photo: David
The Vapor Technology Association (VTA) has filed an amicus brief with the U.S. Supreme Court in support of a petition for writ of certiorari in a case against L.A. County’s ordinance banning flavored tobacco products.
Citing the substantial impact on America’s economy created by the sale of tobacco products, the trade group says Supreme Court review of the flavor ban is critical.
According to an economic impact report prepared by John Dunham and Associates, the independent vapor industry comprises more than 10,000 companies across the United States and is responsible for generating more than 130,000 jobs and more than $22 billion in economic activity for the U.S. economy.
In its amicus brief, the VTA argues that this industry would be devastated by unrestricted flavor bans given its unique and substantial reliance on the sale of flavored vapor products to adult consumers.
The trade group also notes that since the passage of the L.A. County Ordinance, leading tobacco control scientists have challenged the notion of banning e-cigarette flavors and have warned that decreasing availability of flavored vaping products harms the ability of adult smokers to quit smoking cigarettes.
Instead of blanket bans, these tobacco control scientists endorse alternative time, place and manner restrictions for the sale of flavored vaping products, the VTA notes in its amicus brief.
Permitting local and state governments to implement unscientific bans that directly interfere with the fundamental purpose of the Tobacco Control Act and would overrule the Food and Drug Administration’s decision-making for products deemed appropriate for the protection of public health is not only unlawful but is dangerous from a public health perspective, the VTA wrote.
Tobacco and vape flavor bans have gained momentum in the U.S. On Nov. 8, Californians voted to uphold a state law ending the sale of most flavored tobacco products.
November 17, 2022
Vapor Firms Warned for Targeting Children

Photo: FDA warning letter to Wizman Limited
The U.S. Food and Drug Administration on Nov. 16 sent warning letters to five e-cigarette companies for targeting children with products packaged to look like toys, food or cartoon characters. None of the manufacturers submitted a premarket application for any of the unauthorized products.
The unauthorized products described in the warning letters include e-cigarettes that are designed to look like toys and electronics like glow sticks, Nintendo Game Boy and walkie-talkies. Some of the e-cigarettes feature youth-appealing characters from TV shows, movies and video game characters while others imitate foods like popsicles.
“The designs of these products are an utterly flagrant attempt to target kids,” said Brian King, director of the FDA’s Center for Tobacco Products, in a statement. “It’s a hard sell to suggest that adults using e-cigarettes with the goal of quitting smoking need a cartoon character emblazoned across the front of the product in order to do so successfully.”
Critics noted that four of the five companies targeted companies based in China, where the FDA has no jurisdiction.
“Companies in China—like those cited today—manufacture products for sale around the world, not just in the United States,” wrote Jim McDonald on Vaping360. “The FDA cannot enforce its rules for U.S. manufacturers against Chinese companies or against retailers in other countries.”
The recipients of the FDA letters are Wizman Limited doing business as Wizvapor, Shenzhen Fumot Technology Co., doing business as R and M Vapes, Shenzhen Quawins Technology Co., Ruthless Vapor and Moti Global.
November 17, 2022
KAC: Seize Potential of Safer Nicotine

Photo: Sved Oliver
Knowledge-Action-Change (KAC) has published The Global State of Tobacco Harm Reduction 2022: The Right Side of History. The Global State of Tobacco Harm Reduction (GSTHR) publication charts the history of tobacco harm reduction and considers the future of a strategy that can hasten the end of smoking and drastically reduce smoking-related death and disease worldwide.
According to the report’s authors, the emergence of new safer nicotine products has caused substantial disruption to nicotine use, public health and tobacco control institutions and the traditional tobacco industry. However, mistrust and ideological opposition is hampering widespread adoption of a strategy that could help 1.1 billion adult smokers failed by existing tobacco control interventions.
“Technology helped smoking become one of the world’s biggest health problems,” said Harry Shapiro, author of The Right Side of History, in a statement. “Now, technological innovations from beyond both the tobacco industry and public health have combined to produce safer nicotine products, and millions of people who smoked have already chosen to switch. Yet progress is being hampered. Although disruption is not always comfortable, the genie is out of the bottle—these new technologies demand the development of new policies and new thinking.”

“A failure to recognize and exploit the potential of tobacco harm reduction will mean millions more avoidable deaths each year.”
Gerry Stimson, project lead, GSTHR
“A failure to recognize and exploit the potential of tobacco harm reduction will mean millions more avoidable deaths each year and contribute to an ever-growing burden of disease that disproportionately affects the most vulnerable countries and communities,” said Gerry Stimson, GSTHR project lead and emeritus professor at Imperial College London.
“Tobacco control’s lack of evolution, despite its very limited gains, means that many aspirational targets to achieve smoke-free status by 2030 or within the next generation are no more likely to be met than former aspirations for a drug-free world. Tobacco harm reduction offers us an historic opportunity. We must not let it slip away.”
The Right Side of History is the third in the biennial series of GSTHR reports, following No Fire, No Smoke in 2018 and Burning Issues in 2020. A summary of the most recent report is here. The GSTHR project is produced with the help of a grant from the Foundation for a Smoke-Free World.
November 16, 2022
Snowplus Obtains China Production License
China’s State Tobacco Monopoly Administration has granted Snowplus Tech a production license that allows the company to produce 80 million pods annually. In a press note, the company said it will now take on the “challenge and responsibility to help lead the development of a healthy and sustainable vaping industry.”
While the U.S. government has strict regulations for vaping products, there has been a rise in fake or counterfeits of popular brands in the country, which has led to an increase in incidents relating to poorly manufactured variations, according to Snowplus. This, the company says, highlights the importance of using a reputable, tested and certified vape product.
Snowplus stresses that its products are designed in-house, developed by experts in specialist R&D centers and manufactured in one of the largest, most advanced e-cigarette facilities in the world.
Established in January 2019 and backed by investors such as Zhen fund and Sequoia, Snowplus has more than 60 criteria for testing to ensure product safety and quality. With three CNAS certified research laboratories, its safety protocols are recognized and interoperable by 65 institutions in 50 countries, according to the company.
“There is an increasing trend for cheap counterfeit vapes on the market, which we find deeply concerning,” said Derek Li, Snowplus co-founder and head of overseas markets. “That is why we have invested heavily in product research to create products that enhance the vaping experience while ensuring it is as safe as possible.”
Snowplus has invested over $2 million in quality and safety research, and to help prevent e-liquid from leaking out of products, it conducts impact tests in variable temperature, humidity and pressure conditions, according to the company. In addition, Snowplus’ batteries pass two tests before assembly to “guarantee that devices can operate in different environments,” the firm wrote in its press release.
November 16, 2022
Sales Down, Margins Up for RLX Technology

Photo: Tobacco Reporter archive
RLX Technology reported net revenues of RMB1.04 billion ($146.8 million) in the third quarter of 2022, down from RMB1.68 billion in the same period of 2021. The decrease was due primarily to the suspension of store expansions and the discontinuation of older products during the transition to the new national standards, according to the Chinese vapor product manufacturer.
Gross profit was RMB522 million for the quarter compared with RMB656 million in the same period of 2021. Gross margin was 50 percent compared with 39.1 percent in the prior year period. RLX Technology attributed the improvement to a favorable change in channel mix. Because the company gradually terminated partnerships with distributors who did not obtain wholesale licenses during the transition period, its sales contribution from retail stores increased as RLX began to directly provide products to these retail stores. The company benefited also from a decrease in direct cost related to promotional activities.
“During the third quarter of 2022, we remained dedicated to preparing for a smooth transition to the new national standards, which came into full effect on Oct. 1, 2022. Specifically, we wound down shipments of our older products and gradually switched to the National Transaction Platform on a regional basis. We have now achieved full geographical coverage nationwide,” said Ying Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.
“In addition to our efforts to proactively adapt to the new standards, we have focused on fulfilling our social responsibilities, which we see as one of our core competitive advantages. We recently published our annual corporate social responsibility report, summarizing our endeavors with respect to market responsibility, R&D investment, environmental protection, employee career development and corporate governance. I am proud to share that our latest S&P CSA ESG score ranked ahead of 67 percent of our global peers, representing a powerful commendation of our commitment to sustainability and ESG best practices.”
“We delivered net revenues of approximately RMB1 billion in the third quarter, recording a sequential decrease mainly due to the discontinuation of older products during the transition to the new national standards as well as the second quarter’s high comparison basis mainly attributable to frontloading of sales in anticipation of the discontinuation of older products. We remain confident that our diversified portfolio will continue to satisfy adult smokers’ needs and that our sales will gradually recover,” said Chao Lu, chief financial officer of RLX Technology.
“Meanwhile, our continuous efforts to improve operational efficiency are proving effective, evidenced by a 30.9 percent quarter-over-quarter decrease in non-GAAP operating expenses. However, our profitability in the coming quarters will be adversely affected by the application of 36 percent consumption tax to e-cigarettes manufacturers since Nov. 1, 2022. Cost control measures will remain at the forefront of our strategic initiatives as we navigate the evolving regulatory environment while maintaining our sustainable long-term growth.”
November 16, 2022