Author: Taco Tuinstra

  • U.K. Licensing Scheme Proposed

    U.K. Licensing Scheme Proposed

    Photo: VPZ

    The vaping industry was poised to present a proposal for a retailer and distributor licensing scheme to U.K. lawmakers today.

    In addition to a self-sustaining fee structure, the proposed scheme includes governance and oversight mechanisms along with criteria that businesses would need to meet before qualifying for a license. It also outlines a fine and penalty system for those who breach the terms of the license and the conditions under which a license can and should be revoked.

    To qualify for a license, retailers will need to show they have put measures in place to prevent the sale of vapes to minors; do not sell nicotine-free vapes to minors; only stock and sell compliant products; operate legally across all areas of the business; promote products within the advertising regulations; and meet their environmental obligations.

    Vape retailers and distributors may be blocked from obtaining a license under a number of circumstances, including if they’ve previously been caught selling vapes without the appropriate certifications or if they are attempting to reapply within two years of having their license revoked.

    Under the plans, retail licensees would also have to undergo test purchasing exercises at least every six months to ensure they are following youth access prevention procedures as well as having their stock inspected to ensure the products they sell are registered on the Medicines and Healthcare products Regulatory Agency-notified products list.

    They would also be checked on a regular basis to ensure they are complying with advertising and environmental regulations. Licensed distributors would be subject to regular inspections to ensure they are meeting compliance requirements across the board.

    “It doesn’t matter what legislation the government introduces, whether the newly announced ban on disposables or any future restrictions, a robust and balanced licensing system is critical to ensuring the law can actually be enforced and for ushering in a new era of responsibility, accountability and best practice,” said Dan Marchant, co-founder of the U.K. Vaping Industry Association and managing director of Vape Club, which led the development of the proposed scheme, in a statement.

    The presentation of the plan comes just days after a new investigation revealed a near twentyfold increase in the number of illicit vapes seized by councils across the U.K. since 2020.

  • Health Groups Urge Pouch Prescriptions

    Health Groups Urge Pouch Prescriptions

    Photo: DW labs

    Leading health organizations are urging Canadian lawmakers to crack down on flavored nicotine products and make nicotine pouches available upon prescription only.

    In a full-page ad in The Hill Times, Action on Smoking and Health, the Canadian Cancer Society, the Canadian Lung Association, the Quebec Coalition for Tobacco Control, Heart and Stroke, and Physicians for a Smoke-Free Canada assert that flavors play a key role in attracting kids to nicotine products and call on the federal government to ban flavors, including mint and menthol, in e-cigarettes.

    The ad also calls for action to protect minors against the sale and promotion of nicotine pouches by making them a prescription-only product. Under the current federal rules, nicotine pouches authorized under the Natural Health Products Regulation can be legally sold to minors in convenience stores and promoted on television, billboards and social media, including by means of lifestyle advertising.

    “Several additional options are available to the health minister, like temporarily suspending the sale of nicotine products, which would also allow federal, provincial and territorial authorities to strengthen relevant laws and regulations. For example, nicotine pouches could be subject to many of [the] same provisions regarding promotion that apply to tobacco and vaping products,” said Cynthia Callard, executive director of Physicians for a Smoke-Free Canada, in a statement.

    The ad is in part a response to the success of Imperial Tobacco Canada’s Zonnic pouches, which Health Canada approved for sale in 2023. The health groups rebuffed the company’s insistence that its pouches are intended for adult smokers who want to quit. “Unlike other manufacturers of nicotine-replacement therapies, this company deliberately chose to distribute its product through convenience stores and promote them with lifestyle messaging and images of young adults,” said Flory Doucas, co-director and spokesperson of the Quebec Coalition for Tobacco Control.

  • Dutch Retail Bonuses Not Advertising

    Dutch Retail Bonuses Not Advertising

    Photo: fizkes

    Paying retailers bonuses for meeting sales targets does not represent a violation of tobacco advertising restrictions, the Netherlands’ top business court ruled, reports Dutch News.

    The product safety board NVWA fined 11 manufacturers and wholesalers for giving bonuses to shopkeepers who sold pre-agreed-upon quantities of cigarettes or placed products in highly visible spots. The NVWA stated that these practices were against the tobacco advertising ban. The companies, however, argued that they were “quite normal business practices.”

    The Dutch business court found that the NVWA applied the law too widely, stating that advertising only exists if its purpose is to encourage consumers to use the products.

    Starting July 1, supermarkets in the Netherlands will be banned from selling tobacco. Beginning 2032, only specialist tobacco shops will be allowed to sell cigarettes and rolling tobacco.

  • The Looming Backlash

    The Looming Backlash

    Photo: Swedish Match

    Cracking down on Zyn will only harsh the buzz around the office.

    By Peter Clark

    The calls from Representative Chuck Schumer to “crack down” on Zyn nicotine pouches may harsh the buzz around the office. 

    A recent Bloomberg article found that this product has been gaining popularity among office workers. In the third quarter, Philip Morris International saw a 66 percent jump in sales.

    Schumer may aim to shield developing brains from nicotine, but only 1.5 percent of middle schoolers and high schoolers use nicotine pouches. Flavored nicotine products are critical to adults quitting smoking because they break the connection between nicotine and tobacco.

    If regulation is too heavy-handed, adults will be clamoring for their trusty pack of Marlboros. This initiative is a drag on workplace productivity for the following reasons: more smoke breaks, less focused employees and time lost to illness.

    Restricting Zyn pouches may make workers revert to cigarettes, and this is bad for business. The average smoke break is between 10 minutes and 15 minutes long. These constant breaks add up to approximately an additional week of vacation time.

    Not only is this unjust for nonsmokers, but employers feel the pinch. Studies have estimated that smoke breaks cost companies $3,077 ( per employed smoker) annually. Banning flavors and reducing the nicotine content in Zyn will have workers running for the nearest designated smoking area. 

    Schumer’s demand for regulation overstates the risks and overshadows the benefits. This fear-mongering stems from what Jeffrey Singer, a senior fellow at the Cato Institute, refers to as “Nicotinophobia.” The association between the dangers of cigarettes and harm reduction products that contain nicotine.

    Zyn pouches contain isolated nicotine salt but no tobacco. The danger lies in thousands of chemicals composing cigarette smoke. E-cigarettes also deliver nicotine without tobacco smoke. Public Health England has deemed them 95 percent safer than traditional cigarettes. If we have a safer alternative, it is foolish to ignore its benefits as a nootropic. 

    Studies have found that smokers report that nicotine has “beneficial effects on concentration and memory.” Nicotine also enhances performance on complex tasks. A double-blind study by Nature found that administering small amounts of nicotine (1 mg) boosted performance on intricate tasks. Past research even suggests that nicotine improves “IQ-related tasks.” Nicotine’s impact on IQ has caught the attention of tech mogul Peter Thiel, who has flirted with the idea of using nicotine patches for the nootropic effects.

    Banning or restricting nicotine pouches would have a negative impact on the productivity of former smokers who are Zyn converts. When a nicotine addict tries to quit, they experience temporary cognitive decline. Experts in the field of addiction treatment have observed that withdrawal feels “like the opposite of the drug.” Nicotine is no exception. A 2017 study conducted by the Pennsylvania State University found that nicotine deprivation among smokers had an adverse impact on working memory, “which is critical for our understanding of motivated decision-making.” Other researchers have found that nicotine withdrawal is also associated with decreased reaction time and a decline in verbal and spatial memory

    If Zyn users revert to cigarettes, employers will also suffer from reduced productivity due to smoking-related illnesses. The U.S. economy suffers over “$365 billion in lost productivity each year” because of tobacco-related ailments. Not only do chronic diseases contribute to lower productivity, but smokers are also at higher risk for infections—a 12 percent higher risk for viral infections and a 48 percent greater chance of “being diagnosed with respiratory illness,” leaving co-workers to pick up the workload of their sick peers, putting them under unnecessary stress.

    Lawmakers need to realize that targeting Zyn for the sake of America’s youth is misguided. Few kids are using this product, but the harm to adults extends beyond smokers. The impact of smoking-related loss in productivity reverberates throughout the economy. Making Zyn products less appealing to smokers will have our workforce taking excessive breaks, being less focused and being more likely to call out sick. If Schumer wants to tackle a public health crisis facing teens, he should look into automobile accidents, the leading cause of death among teens.

  • All Puff

    All Puff

    Photo: Sevenstock Studio

    Concern about secondhand smoke does not warrant Britain’s generational tobacco ban.

    By Charles Amos

    In recent weeks, I have spoken to hundreds of people about the British government’s plan to ban the sale of tobacco to anyone born after 2009. Most of the responses in favor of it I expected to hear; however, I was surprised at the number of occasions people brought up secondhand smoke as a sufficient reason for prohibition—very often, though this argument was raised only after I had undermined their claim that smoking costs the government lots of money and after I had pointed out the paternalism that was typically their initial justification. Given the propensity of the public to fall back on this point, it is important that it is rebutted.

    A main reason why people object to secondhand smoke is that it is inflicted upon them without their choice. When allied to the idea that it is harmful, many will invoke John Stuart Mill’s harm principle—the idea that the only justification for limiting individual liberty is to prevent harm to others—to justify the tobacco ban. The cost of secondhand smoke has been estimated to be in the region of £700 million ($882.72 million) by Policy Exchange. Nonetheless, the overwhelming majority of this cost evades the central reason people oppose secondhand smoke because it comes from the earlier death of partners or visitors of smokers who choose to be with them. Now relative to smokers not smoking, these partners and visitors are worse off; this worsening can hardly warrant prohibiting smokers from smoking though. Relative to her nephew putting up a handrail on the stairs, a doddery aunt is worse off without it; are we to require he puts up the handrail? No. Hence, it must be admitted that making someone worse off relative to the best situation for them cannot warrant forcing people to provide this best situation.

    Given that we have disposed of the overwhelming majority of the cost of secondhand smoke, we can now focus on the life lost due to the unchosen inhaling of secondhand smoke alone, e.g., when walking past a smoker on the street. Assuming 10 or so occasions in which secondhand smoke is inhaled at a hundredth of the strength of a puff inhaled by the smoker himself gives an annual figure of about 6 seconds lost, or about 2 pence of cost. This is almost certainly an overestimate too; indeed, the first person to publish research on the link between primary smoking and lung cancer, Richard Doll, said, “The effects of other people smoking in my presence is so small, it doesn’t worry me.” Health studies have affirmed this verdict: In 1998, a seven-year study by the World Health Organization found no statistically significant link between secondhand smoke, importantly, including of the chosen type, and lung cancer, and a 2002 study by the Greater London Assembly similarly found the impact of secondhand smoke to be minuscule too. 

    I suspect there will remain those who will still argue that smokers have no right to impose any costs on them whatsoever—and that, hence, smoking should still be banned. This moral reasoning proves too much. If it is accepted, a couple of pence of expected cost, at most, warrants restricting public smoking; analogously, it warrants banning driving, barbequing and coughing in public too, for all of these impose similar or greater costs as well. As English judge Baron Bramwell argued in the Bamford v. Turnley court case of 1862, concerning the passage of smoke over property lines, justice should accept “a rule of give and take, live and let live.” Either that or our moral license to do anything would be seriously limited. Even Mill claimed only harms “without justifiable cause” can be prohibited, and surely, living life is as justifiable a cause as any other.

    At this point, it may be argued that the difference between driving, which exposes people to smoke and the risk of a fatal accident, is that drivers pay their way via fuel duty while smokers do not pay their way via tobacco duty. This is false. As Christopher Snowdon and Mark Tovey have found, smokers contribute about £9 billion in tobacco taxes and save the taxpayer another £10 billion in reduced pension and healthcare costs while their cost in healthcare, litter collection and putting out fires only comes to £4.6 billion, meaning, when we include the estimate of £700 million for secondhand smoke—which is a vast overestimate of the relevant figure—we still find smokers save society about £14 billion a year.

    Plus, it’s pretty rich to ban smoking rooms in pubs and restaurants, where smokers literally internalized their negative externalities, and then, when smokers revert to smoking outside and impose a minuscule externality as a result, to use this minuscule externality as a justification to ban smoking altogether. In reality, it points to the fact that the war on smokers has never really been motivated by stopping harms to others; rather, it has been motivated by an intolerance of smoking itself. And, of course, this whole article has ignored the fact that secondhand smoke in public places can never warrant banning smoking in private places anyway.

    In sum, anyone who accepts that people should be free to drive, barbeque or cough in public must, by the same reasoning, accept that people should be free to smoke in public too. Ultimately, the only reason the public revert to opposing smoking on the basis of the tiny cost of secondhand smoke is their main arguments have failed. Yet even their argument of last resort fails, and with it goes any last justification for the tobacco ban. If people really want to defend the tobacco ban, they should be honest and give their real justification alone, that is: “We’re happy to push people about for their own good.” A questionable justification at best.

  • Northern Exposure

    Northern Exposure

    Vape and modern oral sales are rising, but combustibles remain king of the North American market.

    By Timothy S. Donahue

    It’s constant but unknown. While the nicotine market remains profitable, it is changing. As more major tobacco companies embrace next-generation products, combustible sales will suffer. The evolving regulatory environment will also continue to play a major factor in the North American nicotine market.

    According to Statista, in 2024, revenue in the U.S. nicotine market will reach $107.5 billion. It is projected to experience a compound annual growth rate of 0.62 percent between 2024 and 2028. The largest segment in the market remains combustible cigarettes, with an expected value of $82.7 billion in 2024. The Marlboro brand continues to dominate U.S. cigarette sales with a 50 percent market share.

    E-cigarette revenues are projected to reach $8.8 billion. Statista expects the vape market to experience an annual growth rate of 3.24 percent from 2024 to 2028. Retail sales of nicotine pouches are also seeing unprecedented growth. According to Euromonitor, the U.S. pouch market generated $8.58 billion in 2023 compared to $7.23 billion in the previous year. The U.S. modern oral nicotine market is expected to reach $11.03 billion by 2027.

    The Canadian tobacco market is much smaller than the U.S., reflecting that country’s lower population. Nicotine sales in Canada are projected to generate a revenue of $12.3 billion in 2024. The market is anticipated to experience a compound annual growth rate of 1.10 percent between 2024 and 2028. In Canada, too, combustible cigarettes continue to account for the majority of tobacco sales. The traditional cigarette market is expected to reach a volume of $10.6 billion this year. In 2024, the revenue in the e-cigarette market in Canada is estimated to reach $1.4 billion.

    Nicotine pouches were approved for sale in Canada on July 18, 2023, as a natural health product. Modern oral nicotine pouches are currently outside the scope of the federal Tobacco and Vaping Products Act and the provincial Smoke-Free Ontario Act 2017, which regulate tobacco and vaping products by restricting their advertisement, display and public use. However, that is expected to change soon.

    During an education seminar at the Total Products Expo (TPE) that took place in Las Vegas Jan. 30 to Feb. 2, 2024, Brad Seipel, executive vice president at MARC Research, noted that many of the next-generation tobacco products disrupting the market today have been on the market for over a decade. Innovation in the industry, he said, is being driven with a focus on tobacco harm reduction and a move away from traditional tobacco. “We are now living in a post-tobacco market. It is a nicotine market,” Seipel said.

    Brad Siepel (left) and Jason Carrington (Photo: Chemular)

    Bonnie Herzog, an analyst with Goldman Sachs, observed in an industry report that retailers are seeing customers making fewer trips to the store, which is being driven by consumers switching to alternative nicotine products like modern oral. These products often last longer than a typical pack of combustibles. She also explained that the illicit market for disposable vape products continues to be a growing concern for the nicotine industry and retailers alike as the U.S. Food and Drug Administration’s crackdown on flavors and noncompliant products has driven traffic to the gray/black market or retailers willing to sell unauthorized vaping products.

    She said a broad majority of retailers believe the situation is worsening with the impact felt strongest in urban areas and states with the strictest flavor bans. “Many retailers highlighted that the illicit disposable [e-cigarette] market is impacting cigarette volume, and [Altria] estimates the growth of these illegal products contributed to cigarette industry declines in the range of 1.5 percent to 2.5 percent over the last 12 months,” she said. “Retailers don’t believe the situation will change without more enforcement and are broadly pessimistic given the ubiquity of the offering, tracking/enforcement difficulty and relatively light penalties reducing deterrence.”

    One respondent to the survey pointed out that enforcement fines issued by the FDA are manageable ($19,192 per violation), and the extent of policing hasn’t resolved the issue. Others noted that retailers selling these products (i.e., on the gray market) are making hefty margins on those sales, which are helping them offset losses on (cigarette) sales.

    During Keller and Heckman’s E-Vapor and Tobacco Law Symposium, held Jan. 29–30 in Las Vegas, Brian King, head of the FDA’s Center for Tobacco Products, said his agency carried out a series of coordinated blitzes against Elf Bar and other “illicit” brands at several retailers that resulted in warning letters. The agency then issued civil money penalties following subsequent reinvestigations against retailers found to still be selling illegal products. Many of the recipients of these penalties were small businesses.

    “We do know that we need that comprehensive approach,” said King. “And so, we’ve also taken action on the borders, particularly for products that are coming in internationally. We do have import alerts in place. Those do address products that have been accurately declared. Of course, we know that there are entities that are misdeclaring products as well. Towards that end, we work very closely with colleagues at Customs and Border Protection. We did have an operation that was conducted earlier this year where we seized over $18 million worth of products, including Elf Bar, Funky Republic and several others. It was about 1.4 million units of illegal e-cigarettes. Ultimately, this is one example of ongoing activities. There will be more.”

    TIm Phillips (Photo: Chemular)

    Also speaking at TPE, Tim Philipps, with Tamarind Intelligence, said that a major issue is enforcement. While the FDA’s premarket tobacco product application (PMTA) process is expensive and onerous, it also seems pointless because there is little effort to stop products that skip the regulatory process from being marketed. According to Phillips, even the FDA’s current blitz barely skims the surface of the deepening gray/black markets.

    “The products that you’re getting offered in retail environments, they haven’t gone through a regulatory process, and there’s no signs of that happening, frankly,” he said. “The FDA is stepping up some of its enforcement activity. We’ve seen more and more of this happening, and I think it will keep increasing. But the reality is the market’s not being regulated at all. The same is happening, by the way, in the U.K. and all across Europe. We’re seeing a lot of products come in. The reason is that a lot of these products are being distributed directly to retailers or directly to consumers (from the manufacturer). And that’s been a great success.”

    A looming federal menthol ban could also boost the gray/black markets for nicotine products. The FDA has submitted proposals to the White House Office of Management and Budget (OMB) to ban the use of menthol in cigarettes and other tobacco products and prohibit all nontobacco flavors in cigars. The FDA is also expected to definitively define a “characterizing flavor.” The OMB is currently reviewing these proposals. Before the product standards can be implemented, the OMB must review their potential economic impact.

    The FDA has stated that it expects to announce the final ruling on the menthol ban in March. However, with the U.S. presidential election approaching this November, many industry experts are uncertain if any action will be taken at all. Unsurprisingly, several respondents to Herzog’s retailer survey expressed fatigue with ongoing uncertainties related to the potential federal menthol ban, the FDA’s efforts to enforce bans on illegal disposable vape products and flavors and the agency’s slow progress in completing PMTA reviews. The rapid growth of local flavor bans is also an expanding concern.

    “A number of retailers who are currently not subject to [local] flavor bans anticipate the potential in the near future given rapidly evolving legislative agendas,” Herzog stated. “The looming decision by the FDA on a federal menthol ban on (cigarettes) has also led many retailers to take a wait-and-see approach on carrying gray market vapor products, which are higher margin and more affordable for consumers.”

    The future of nicotine products still holds promise. Seipel said that the dissolvable and heat-not-burn segments have plenty of room for growth as the awareness and usage of those products haven’t yet gotten traction in the North American market. Seipel said as long as there are combustible smokers, there is going to be room for innovative products that help them switch to less harmful alternatives.

    “There’s also [an] opportunity in innovation for helping female smokers …. We have to remember that there are way more people out there that need help [quitting smoking],” he said.

  • Li Volti Reconfirmed Director of CoEHAR

    Li Volti Reconfirmed Director of CoEHAR

    Photo: CoEHAR

    The Center of Excellence for the acceleration of Harm Reduction (CoEHAR) has reappointed Giovanni Li Volti as its director for the next four years.

    “Following the path already undertaken by Riccardo Polosa, founder of CoEHAR, our center is today considered the most influential and productive in the world in the field of research applied to the harm reduction,” Li Volti said in a statement acknowledging the reappointment.

    “A recognition that has led our university to be celebrated and rewarded several times for the productivity of its members, for innovation in the scientific field and for the large and important internationalization actions that have brought to Catania, in just five years, more of 150 researchers and stakeholders from all over the globe, interested in our activity.

    “The trust expressed by all of you honors me and motivates me even more to dedicate my energies, and what I have learned so far, to guarantee the success of scientific research in the sector of reducing smoking harm, and to follow the immense work carried out from the entire CoEHAR team and its founder and mentor.

    “The international successes of CoEHAR are the victories of a team and of the great excellence of Catania research. I look to the future with optimism and hope to work in close collaboration with everyone to achieve new shared and far-sighted goals.”

    Tobacco Reporter profiled CoEHAR in its January 2024 print edition and online (see, “Reviewing their Peers”).

  • Study Debunks Myths About Smokers

    Study Debunks Myths About Smokers

    Photo: Taco Tuinstra

    Contrary to popular perceptions, most smokers in Australia are educated, employed and in good mental health, according to a national study by the Australian National University (ANU).

    Study senior author Emily Banks said the findings will help break down stigma surrounding people who smoke as well as ensure that support is better targeted to the people who need it. 

    “Smoking remains Australia’s leading cause of premature death and disability, so it’s vital that we better understand who smokes and the reasons why they do,” she said in a statement.

    “People who smoke are often stigmatized and stereotyped as uneducated, unemployed and mentally ill.”

    “We analyzed nationally representative data on smoking in Australia to get a better understanding of who smokes in our population,” said lead author, Jessica Aw, a medical student at ANU. “We found that around 2.5 million people smoke daily in Australia; around 60 percent of people who smoke are men, 65 percent live in major cities, and 92 percent are non-Indigenous.

    “In addition, 69 percent have completed year 12, 69 percent of those of working age are in paid employment and 73 percent had good mental health.

    “Although smoking is more common in people who are experiencing structural disadvantage—like people in more remote areas, Indigenous peoples, those with less education and those living in poverty—most people who smoke are educated, employed and in good mental health, similar to the total population of Australia.”

    The findings are published in the Medical Journal of Australia.

  • Eastern CEO Defends Price Hike

    Eastern CEO Defends Price Hike

    Photo: Taco Tuinstra

    Eastern Co. increased cigarette prices by between EGP2 ($0.06) and EGP8 per pack, effective Feb. 17, 2024, reports Ahram Online.

    The company’s most affordable brand, Cleopatra, now retails for EGP30 instead of EGP27 for a pack of 20 cigarettes.

    This marks the company’s second price hike in three months. Cigarette prices have increased multiple times over the past year in Egypt amid the decreasing value of the Egyptian pound against the U.S dollar.

    Earlier this month, Philip Morris Egypt raised prices of traditional cigarette brands, including Marlboro, Merit and L&M, by between EGP9 and EGP11 per pack.

    In a television interview, Eastern Co. CEO Hani Aman insisted the price hikes were modest when compared to the significant increase in the cost of raw materials.

    “We are not a very commercial company, otherwise we would have raised our prices by large proportions like other companies, but we look at the issue from a different point of view. Cigarettes are a strategic commodity,” he was quoted as saying by The Egypt Independent.

    According to Aman, 95 percent of cigarette components are imported. The price of cigarette filters, for example, has increased by about 400 percent, he said.

    Approximately 18 million people out of Egypt’s nearly 105 million-strong population smoke cigarettes, according to official data.

  • Singapore to Strengthen Vaping Enforcement

    Singapore to Strengthen Vaping Enforcement

    Photo: 2p2play

    Singapore plans to intensify its crackdown on vaping, reports The Straits Times.

    In a joint statement in December 2023, the Health Sciences Authority (HSA) and the Ministry of Health said enforcement and education efforts would be stepped up to prevent vaping from gaining a foothold in Singapore.

    The city state banned vaping in 2018. Buying, owning or using a vaporizer in Singapore can result in fines of up to SGS2,000 ($1,484.69). First-time offenders who import, distribute, sell or offer for sale vaporizers and their components can be fined up to SGD10,000, jailed for up to six months, or both.

    Authorities encourage citizens with information on the illegal possession, use, purchase, import, distribution, sale or offer for sale of vaporizers to the Tobacco Regulation Branch.

    Despite the risks, vaping has been steadily gaining ground in Singapore, with consumers buying vapes online and from overseas suppliers. In 2022, 4,916 people were violating Singapore’s vaping ban, compared with 1,266 in 2020 and 4,697 in 2021. In December 2023 alone, authorities reported  1,656 vaping -related cases.