Author: Taco Tuinstra

  • Taat Reports Third-Quarter Results

    Taat Reports Third-Quarter Results

    Photo: Taat Global Alternatives

    Taat Global Alternatives reported revenue of CAD17.47 million ($12.93 million) and a gross profit of $567,404 for the three-month period ended July 31, 2022. Assets grew 48.77 percent to $23.38 million over the comparable 2021 quarter.

    “I am very pleased with our results for FQ3 2022, as they reflect the many steps we have taken to fortify the financial landscape of the company as an integrated innovator, manufacturer and distributor of tobacco alternatives, legacy convenience offerings and other emerging product categories,” said Taat CEO Michael Saxon in a statement.

    “We continue to strategically commercialize Taat as a category creator, which is now sold in thousands of stores between our U.S. and U.K. footprints, including placements in major convenience and gas chains.”

  • Vuse Widens Lead Over Juul

    Vuse Widens Lead Over Juul

    Photo: BAT

    Vuse has widened its U.S. market share lead over Juul to double digits, reports the Winston-Salem Journal, citing the most recent Nielsen analysis of convenience store data.

    The analysis, released Sept. 20, covers the four-week period ending Sept. 10.

    Vuse’s market share rose from 39 percent in the previous report to 39.7 percent compared with Juul declining from 29.4 percent to 28.1 percent.

    Vuse, which is made by Reynolds Vapor Co., has also now edged ahead of Juul in the year-over-year comparison at 32.9 percent to 32.7 percent, respectively. It’s the first time Vuse has led the year-over-year comparison.

    According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen. Meanwhile, No. 3 Njoy dropped from 2.9 percent to 2.8 percent while Fontem Ventures’ blu eCigs slipped from 1.6 percent to 1.4 percent.

    Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 17.7 percent decline in the latest report.

    By comparison, Vuse was up 41.4 percent in the latest report while Njoy was down 5.6 percent and blu eCigs fell to 30.2 percent.

    Experts attribute the growing gap between Vuse and Juul to the possibility that Juul Labs may have to pull its products from the U.S. market if the Food and Drug Administration’s marketing denial order (MDO) remains in place.

    The FDA has suspended its MDO for the duration of Juul Labs’ appeal.

  • Framtiden Opposes PMI Bid for Swedish Match

    Framtiden Opposes PMI Bid for Swedish Match

    Photo: Swedish Match

    Framtiden Management Co. announced its opposition to the proposed takeover of Swedish Match by Philip Morris International. The Framtiden Partnerships own over 14.5 million shares representing about 1 percent of outstanding shares.

    As a long-term Swedish Match shareholder since 2003, Framtiden believes that the acquisition offer of SEK106 per share deeply undervalues the company, which Framtiden estimates to be worth nearly SEK200 per share.

    The company detailed its position in a white paper.

    According to Framtiden, the offer inadequately values Swedish Match’s leading position in the rapidly growing nicotine pouch segment and the latent market potential worldwide. Furthermore, the investors believe the offer underappreciates the uniqueness of a fast-growing established global consumer staples business and forces the realization of capital gains that would otherwise be deferred for long-term investors who want to participate in the company’s continued growth.

    “My partner Chris Anderson and I believe that this deal does not make sense for long-term shareholders,” said Dan Juran, managing member of the Framtiden Partnerships, in a statement. “I have closely followed Swedish Match’s development for nearly two decades, built relationships with its managers and currently serve as the chairman of the company’s nominating committee. I was dismayed to see the board recommend the sale of this Swedish jewel at a bargain price in the early stage of probably the greatest chapter in its long history.

    Juran said that while investors may be tempted by the short-term premium, especially during a period of market declines, he compared the potential of Swedish Match to that of Coca-Cola in the 1980s and Philip Morris in the 1950s.

    “Those companies compounded earnings at a superior rate for many years, and shareholders who stuck with them were rewarded mightily,” he said. “We believe sticking with Swedish Match is likely to prove far more remunerative to shareholders over time than cashing out. We hope other shareholders see the merits of our position, further detailed in our white paper.”

    Framtiden Management Co. joins Elliott Management Corp. and Bronte Capital in asserting that PMI’s offer undervalues Swedish Match. Elliott Management Corp. is believed to be increasing its stake in Swedish Match in order to get a better price from PMI.

    PMI says it has already obtained approvals for its acquisition by regulators in Brazil and the United States. European regulators have indicated that they intend to review the bid by Oct. 11.

  • Juul Sues FDA for Docs Justifying Product Ban

    Juul Sues FDA for Docs Justifying Product Ban

    Juul Labs is suing the U.S. Food and Drug Administration to force the agency to disclose documents supporting its order banning the company’s products, reports Reuters.

    On June 23, the FDA ordered Juul Labs to pull its e-cigarettes from U.S. store shelves, saying the e-cigarette manufacturer had submitted insufficient evidence that they were “appropriate for the protection of the public health.”

    A federal appeals court then granted Juul Labs an emergency stay of the order to give the judges time to evaluate the merits of Juul’s appeal. The e-cigarette company separately asked the FDA to stay its own order pending the appeal.

    In a complaint filed on Sept. 21 with a federal court in Washington, D.C., Juul accused the FDA of invoking the deliberative process privilege to improperly withhold scientific materials that are key to understanding the basis for the June 23 sales ban.

    Juul said the materials would show whether the FDA conducted a legally required balancing of the public health benefits and risks of its products, including claims they help smokers quit cigarettes, and whether the agency’s reasoning was scientifically sound.

    “The public deserves a complete picture of the scientific facts behind one of the agency’s most controversial and closely scrutinized decisions in recent years,” Juul said.

    Juul accused the FDA of violating the federal Freedom of Information Act by withholding a majority of the “scientific disciplinary reviews” underlying the sales ban.

  • Revenue Down as RLX Adjusts to New Rules

    Revenue Down as RLX Adjusts to New Rules

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB2.23 billion ($333.5 million) for the second quarter of its fiscal year 2022 compared with RMB2.54 billion in the same period of 2021. Gross profit was RMB977.9 million compared with RMB1.15 billion in the comparable 2021 period.

    The company attributed the decrease in net revenues primarily to the suspension of store expansions and new product launches to comply with regulatory requirements.

    Chinese authorities have recently moved the vapor business under the regulatory framework for tobacco products. E-cigarette manufacturers now require operating licenses from the State Tobacco Monopoly Administration (STMA) while vapor products must satisfy various standards and technical requirements before entering the market.

    On June 10, 2022, one RLX Technology subsidiary obtained an STMA license to manufacture e-liquids. On July 22, 2022, another subsidiary was licensed to own the RELX brand and manufacture RELX branded e-vapor rechargeable devices, cartridge products and products sold in combination with e-vapor rechargeable devices and cartridge products.

    “Over the past several months, we have made meaningful strides in adapting our business and product development to the new regulatory framework,” said Ying (Kate) Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement. “Specifically, we have obtained the License for Manufacturing Enterprise and received regulatory approvals for some of our new products, demonstrating our operational excellence and industry-leading R&D capabilities.”

    “In light of the regulatory changes, we are off to a slow start of the sales of our new products that are compliant with the National Standards in the new transaction system mandated by the regulators,” said Chao Lu, chief financial officer of RLX Technology. “Despite the macro headwinds, we will continue to steadily focus on cost optimization while reinforc[ing] our product competitiveness under the new regulatory regime to create sustainable, long-term growth for our shareholders.”

  • 22nd Century Partners With Eagle Rock

    22nd Century Partners With Eagle Rock

    Photo: 22nd Century

    22nd Century Group will start placing its VLN reduced-nicotine cigarettes in thousands of stores across Colorado with Eagle Rock Distributing Co. With more than 90 years of history, Eagle Rock Distributing Co. is a leading beverage distributor of premium alcoholic beverages servicing license retailers across Georgia and Colorado.

    “We’re thrilled to partner with Eagle Rock as we open VLN sales across Colorado. In addition to our existing retail partnerships from our Chicago pilot, we now have access to nearly 7,000 prospective new locations through Eagle Rock’s network, to include both on-premise and off-premise locations,” said John J. Miller, president of 22nd Century’s tobacco business, in a statement.

    “We are excited to partner with 22nd Century Group to market VLN across the state of Colorado,” said Michael Economos, president of Eagle Rock Distributing Co. “We want Colorado to be the first state to have a combustible cigarette brand that meets the U.S. Food and Drug Administration[‘s]

    and Biden administration’s proposed nicotine cap broadly available to adult smokers across the state to truly help them smoke less. We have had similar ‘nonalcoholic’ adult beverage offerings for decades, and we are way overdue for adult cigarette smokers to have an analogous option.”

    22nd Century also partners with Circle K, one of the largest convenience chains in North America, and Smoker Friendly, a leading pioneer in the cigarette and tobacco store category with more than 800 independently owned and operated retail stores.

  • Christoph Peternell to Lead Hoffmann’s Tins Business

    Christoph Peternell to Lead Hoffmann’s Tins Business

    Christoph Peternell (Photo: Hoffmann)

    Hoffmann has named industry expert Christoph Peternell as managing director for its tins business. He replaces Andre Seiler and will be based at the company’s headquarters in Thun, Switzerland.

    Peternell brings over 25 years of international experience managing production facilities and their corresponding supply chain logistics. He has an accomplished history of strategic and operational successes in various fast-moving consumer goods companies, where he served many years as interim or plant manager. His most recent position was in the infant food sector as chief operating officer of Hochdorf Swiss Nutrition, Switzerland.

    Peternell joins Hoffmann amid a period of heightened investment in its tins business, which includes upgraded equipment, renewable energy to decarbonize the plant, new production lines and expanded product features.

    “Christoph has demonstrated the ability to lead production and logistics teams worldwide and to maximize growth potential in various consumer sectors consistently,” said Mark Aegler, CEO of Hoffmann Neopac, in a statement. “He is joining Hoffmann at an exciting, forward-thinking time highlighted by significant near-term investments to expand capacity and product versatility. We’re delighted to welcome him to the Hoffmann family.”

    Peternell holds a master’s degree in food technology, and he has completed various further diplomas in business administration. He lives with his family in Konstanz, Germany.

  • PMI Renews Call to Help End Smoking

    PMI Renews Call to Help End Smoking

    Gregoire Verdeaux (Photo: PMI)

    Philip Morris International is calling on policymakers, regulators, public health advocates, tobacco companies and activists to unite behind the goal of ending cigarette smoking.

    As the United Nations General Assembly convenes to discuss global challenges, the company is releasing a white paper, “Rethinking Disruption: Innovating for Better in an Era of Division,” which previews select findings from a new international survey highlighting the broad societal support for disruptive innovations to improve public health and address other critical issues. The white paper explores how the world’s most significant challenges—including smoking—can be solved through pragmatic solutions and decisive, concerted action.

    The survey respondents (17,207 adults aged 21 and older in 14 countries) believe that the development and adoption of new technologies, innovations and capabilities can enable significant progress against a range of issues over the next 10 years to 20 years, including: encouraging healthier eating habits (78 percent); ensuring quality and affordable healthcare for all (72 percent); reducing smoking rates (65 percent); and eliminating hunger and malnourishment (62 percent).

    “We believe that there exists a real opportunity for activists, public health leaders and policymakers to significantly improve public health by helping millions of adults who would otherwise continue to smoke switch to better alternatives,” said Jacek Olczak, CEO of PMI. “For more than a decade, PMI has been transforming for good, directing our resources and energy to provide better options to adult smokers and deliver a smoke-free future as quickly as possible. Though the best choice is never to start smoking or to quit if you do, we know that, realistically, many smokers will not quit—and, frankly, those adults deserve better.”

    Senior PMI executives, including Olczak, will address international forums during the week of Sept. 19, talking about the pressing need for collaboration on solutions that are real, practical and grounded in science to achieve meaningful progress in the tobacco sector and beyond.

    “Innovation is a crucial piece of the solution of eliminating cigarettes, but it’s not the only piece,” said Gregoire Verdeaux, senior vice president of external affairs at PMI. “Once scientific and technological advances have been made, regulations need to keep up. Policies should reflect that certain tobacco and nicotine products are less harmful and ensure that adult smokers who do not quit can access and afford these better alternatives to cigarettes. This is especially true in developing countries, where most smokers are.”

    A list of events can be found on the company’s website.

  • Studies Refute Vaping-Smoking Link

    Studies Refute Vaping-Smoking Link

    Photo: Andrey Popov

    There is no evidence that the use of e-cigarettes and heated-tobacco products is leading nonsmokers and youth toward smoking, according to several studies.

    Action on Smoking and Health (ASH) U.K. cited the results of five large surveys of 11-year-olds to 16-year-olds in the U.K. between 2015 and 2017 showing that “most young people who experiment with e-cigarettes did not become regular users,” according to media reports.

    “Overall, there is no evidence that e-cigarettes have driven up smoking prevalence in this age group. In fact, smoking prevalence among young people has declined since e-cigarettes came onto the market,” ASH U.K. stated.

    A time-series analysis led by Emma Beard between 2007 and 2018 in the U.K. showed that the increase in the prevalence of e-cigarette use in England among the entire sample does not appear to have been associated with an increase in the uptake of smoking among young adults aged 16 to 24.

    A 2022 study by University of Bristol researchers found that, based on the “current balance of evidence, using triangulated data from recent population-level cross-contextual comparisons, individual-level genetic analyses and modeling, we do believe, however, that causal claims about a strong gateway effect from e-cigarettes to smoking are unlikely to hold while it remains too early to preclude other smaller or opposing effects.”

    A 2020 study by Colin Mendelsohn and Wayne Hall concluded that claims of vaping serving as a gateway to smoking are unconvincing. “Smoking more often precedes vaping than vice versa, regular vaping by never-smokers is rare, and the association is more plausibly explained by a common liability model,” they stated.

    Another comprehensive analysis of whether vaping causes smoking uptake was published by the University of Queensland in Australia. That study also concluded that there was little evidence of a gateway effect. If a gateway effect does exist, it is likely to be small, the study said.

    A 2021 study by Wayne Hall and Gary Chan on the “gateway” effect of e-cigarettes found that “e-cigarette use has not been accompanied by increased cigarette smoking among young people in the United States as would be the case if e-cigarette use were a major gateway to cigarette smoking.”

  • New Vaping Quality and Safety Specs in Britain

    New Vaping Quality and Safety Specs in Britain

    Photo: Lezinav

    The British Standards Institution has developed a fast-track informal standard, PAS 8855, to address quality, performance and safety issues related to vaping products, reports ECigIntelligence.

    The new PAS (publicly available specification), sponsored by Juul Labs, recognizes the progress made in the construction and use of e-cigarettes since PAS 54115 was issued in 2015.