The Premium Cigar Association (PCA) has hired Richard Chalkey as its new director of Coalitions and Policy. Chalkey brings over a decade of professional experience from work in government and the private sector, according to an emailed press release.
“The Premium Cigar Association has worked with Richard since his time in the West Wing of the White House through Congress and we look forward to having him join our team,” stated PCA Deputy Executive Director Joshua Habursky. “It is rare to find someone in Washington who has worked in the House, Senate, and White House –especially someone who worked four years in a White House and in the West Wing. We are glad to have the perspective and network that Richard will bring.”
Previously, Chalkey served as the associate director of the National Economic Council and as the associate director of the Office of Legislative Affairs in the Trump White House. During his four years of service at the White House, Chalkey managed policy rollouts for the directors of his departments and in coordination with White House Senior Staff and Cabinet Agencies.
Most recently, Chalkey served as deputy chief of staff for Rep. Nancy Mace of South Carolina in the 117th and 118th Congress. Prior to the White House, Chalkey also served in the office of former U.S. Senator Mark Kirk and former Congressman Rodney Davis, both of Illinois.
Chalkey holds a bachelor of science in Management – International Business and a bachelor of science in Marketing from the University of Illinois at Urbana-Champaign. He is a U.S. State Department Gilman Scholar for studying abroad at the University of Hong Kong and currently is a May 2024 expected executive MBA candidate for the Darden School of Business at the University of Virginia.
That didn’t take very long. The global vaping company Plxsur reached its goal of reaching $1 billion in consolidated revenues from its partners in just two years. The company has now successfully partnered with 12 of the world’s leading vaping companies to form what may be the largest and fastest-growing group of independent vaping companies in the world. According to Nigel Hardy, CEO and founder of Plxsur, the company accomplished this with a focus on compliance, governance and reporting, with responsibility at its core.
“We believe having a portfolio of multiple brands is crucial for building a successful reduced-risk product (RRP) business at scale. Our retail sales across the group reflect the impact of Plxsur, which supports adult smokers who have switched to vaping,” explains Hardy. “We have sold products to about 4 million consumers, with retail sales by value of units sold at $1.835 billion. Additionally, our three North Star owned brands, Salt, Allo, and Flavour Beast, are expected to generate retail sales of more than $400 million in 2024.”
Plxsur also has 10 e-liquid manufacturing facilities in six different markets. With that comes the quality management systems to ensure the quality of the raw materials that are coming in and what’s going out. It’s not only about quality control (QC), but also about quality assurance. All e-liquids are manufactured in a minimum ISO 9001-certified facility. Plxsur’s QC program ensures that all products manufactured and distributed meet or exceed all regulatory and legislative requirements in the markets where the products are produced.
ISO 9001 is an international standard specifying quality management system requirements. Organizations use it to demonstrate their ability to consistently provide products and services that meet customer and regulatory requirements. Plxsur only produces its brands of e-liquids. The company does not do third-party manufacturing because the company’s focus is on its products.
Plxsur leadership says its partners have a combined market share representing an estimated 10 percent of the global $19.34 billion vaping market. Hardy said the company is targeting a 20 percent market share in the next five years. The companies include Hale Vaping (Ireland), UEG Holland (Netherlands), DampShop (Belgium), Pro Vape (Latvia), Puff Store (Italy), Nobacco (Greece), Ritchy Group (Czech Republic), Vape Empire (Malaysia), Pacific Smoke (Canada) and CK Complex (Poland).
“The past two years have seen a huge amount of financial and operational progress for Plxsur, and we have grown to become the world’s largest and fastest-growing group of independent vaping companies with consolidated revenues of over $1 billion,” said Hardy.
In 2021, Plxsur was founded by David Newns, Charlie Yates, and Nigel Hardy. The three entrepreneurs shared a vision for the vaping industry and discussed how they could work together to achieve their goals. They believed the key to success was respecting and supporting entrepreneurship while empowering local management teams. They planned to create a global network of independent vaping companies that were both the largest and the most responsible in the industry.
Plxsur, under Hardy’s leadership, believes in improving the businesses it brings on board by focusing on three key aspects of business strategy: governance, compliance, and reporting. Compliance involves adhering to various rules and regulations in the countries and communities where Plxsur businesses operate. This includes regulatory, communication, and marketing compliance, as well as legal compliance related to finance and jurisdiction.
“We’re at a very important and exciting stage in our journey. The companies in that group are not only the best at what they do in their respective markets, but importantly, they share our values.
“They put the consumers first, think big, and take responsibility seriously. All our companies want to make a real difference in the lives of adult smokers by contributing to a smokeless society. We now have a presence in Europe, Asia, and North America, covering the full vaping value chain from manufacturing, wholesale, distribution, and direct-to-consumer, both online and through our global network of over 800 specialist vaping stores.”
In 2023, group revenues increased 40 percent on the previous year to more than $1 billion, with an adjusted EBITDA of over $200 million. The outlook for the global vaping market is strong, and last year, Plxsur commissioned an independent research report that Hardy said is the “most comprehensive consumer study conducted on vaping to date”, using data from an online panel of over 30,000 consumers in six of Plxsur’s markets.
“The opportunity available for RRP across our 12 markets is significant, and I am pleased that our Global Vaping Market Snapshot vindicates the belief that not only will this sector continue to grow at pace, but that vaping is quickly becoming the most popular form of RRP in the market, with adult smokers who switch to vaping likely to remain loyal by navigating the regulatory framework,” he explained. “Our team has established a center of excellence leading a program of capability development to ensure management teams at a local level of the skills to deliver sustained value growth.”
Plxsur and its partners continue raising the bar as a responsible vaping group. All its companies have now committed to the six Plxsur standards (product compliance, manufacturing safety, responsible marketing, youth access, child protection and third-party product compliance) that address the biggest issues the vaping industry faces today. The company has also supported local teams across the group and guided companies in engaging with governments on policy development, particularly around preventing youth access.
“We’re focused on migrating consumers from disposable vapes to rechargeable pod and open systems. This is a key priority for Plxsur and our companies are already delivering huge results. In Q3 of 2023, I’m delighted that our Italian business, Puff, successfully migrated many of their consumers to pod and open devices through its launch as an exclusive distributor of new-to-market pods and e-liquids,” said Hardy. “To keep the momentum going, our portfolio companies have exciting plans to expand their range of pod systems in the first half of this year.”
Unlike traditional business acquisitions, Hardy explained that the company’s partners are not selected based on their financial worth. Plxsur is highly selective in its choice of partners, and financial size is not the only factor determining whether a company is suitable to join the Plxsur team. Hardy cited the example of Pro Vape, a company headquartered in Riga, Latvia, which started its business in late 2016 and met all the necessary criteria to become a Plxsur partner.
“The Baltic market is not particularly a huge market for vaping. What Pro Vape has is a significant presence in Europe,” said Hardy. “Only 40 percent of their business is domestic, and 60 percent is across the rest of Europe.”
Plxsur has specific criteria that businesses must meet before partnering with them. Firstly, the company must be a leader in its channel, whether it is business-to-business or business-to-consumer, or a leading player in its market. Currently, all of Plxsur’s partners meet this benchmark. Secondly, having a healthy balance of company-owned brands within the portfolio is essential, with Plxsur aiming for at least 50 percent of its revenues to be driven by such brands. Thirdly, the most crucial criterion is people.
“Our ability to retain our unique entrepreneurial spirit while growing at a rapid pace has been pivotal to our success over the past two years,” said Hardy. “We remain committed to achieving long-term value for all stakeholders, with responsibility at the core of everything we do. Supported by several tailwinds, including evolving market dynamics and customer preferences, we remain confident in Plxsur’s medium-term prospects and our ability to continue our trajectory to promote responsibility in the sector, achieve our target of over $15 billion in revenues by 2033.”
To achieve the lofty goal, Hardy said Plxsur is well placed to capitalize on the growing trend of vaping across the globe, unlock future value, and play a leading role in shaping the sector’s future on a platform of responsibility. He said Plxsur excels at creating a distinctive, innovative business leadership environment while growing at a pace pivotal to the company’s success over the past two years.
“We continue to see increasing regulation around vaping, particularly disposables, flavors, and marketing,” said Hardy. “At Plxsur, we see regulation as a force for good and encourage appropriate regulation and enforcement to tackle illicit and irresponsible trading behaviors. Last year, we submitted Plxsur’s response to the UK government’s open consultation on creating a smoke-free generation, and we continue to engage with regulators worldwide.
“This engagement with responsibility at the core of everything we do places Plxsur in a prime position to continue to grow, lead the industry, and shape the future of vaping.”
The UK government is set to introduce a bill in parliament aimed at phasing out smoking among young people by prohibiting nicotine sales for future generations.
The Tobacco and Vapes Bill, if passed unamended, will be one of the world’s toughest anti-tobacco laws and prevent children turning 15 this year or younger from ever being able to be legally sold nicotine products.
The government said smoking itself would not be criminalized. Therefore, anyone who can legally buy tobacco now will not be prevented from doing so in the future, according to Reuters.
“If we want to build a better future for our children, we need to tackle the single biggest entirely preventable cause of ill-health, disability, and death: smoking,” Conservative Prime Minister Rishi Sunak said in a statement.
Critics say the move is “unconservative,” and former prime minister Liz Truss is one of several members of the governing party who have said they will vote against the legislation.
Despite the opposition, the legislation is expected to pass with the opposition Labour Party suggesting it would support the measure.
Last month, a similar law introduced by New Zealand banning tobacco sales to those born after Jan. 1, 2009 was repealed by the country’s new coalition government.
Mayor Brandon Scott of Baltimore, Maryland, signed a bill last week banning all tobacco and nicotine products in city stadiums.
Orioles and Ravens games were already smoke-free, as required by state law. But now, all tobacco and nicotine products are banned inside the gates.
Scott made the ban official. The ordinance banning tobacco and nicotine products extends to all stadiums and athletic facilities in Baltimore city – notably, Orioles and Ravens home games.
Locals and visitors are reacting to the new bill, according to media reports.
Bill Vickers from Boston supports the ban, emphasizing the importance of a family-friendly environment at the ballpark. “It’s a great idea, probably been a long time coming. It’s just you have families coming to the ballpark,” Vickers said.
Other residents say they would prefer a compromise. “I can always understand both sides of things. It’d be nice if there was just a designated area,” Kevin Robertson of Baltimore said.
Customs officers in Hong Kong seized illegal cigarettes worth more than HK$208 million ($26.6 million) in the first 15 days after a tobacco tax increase came into force as part of last month’s budget.
Superintendent Jeff Lau Leung-chi of the Customs Revenue Crimes Investigation Bureau said on Monday that if the tobacco had been legally imported, the contraband products would have generated about HK$147 million in tax.
Lau attributed the increase in cigarette seizures to enhanced enforcement action at all levels to combat the trade in illegal tobacco products and the operation’s longer duration in the second phase, according to media reports.
“We also believe that crime syndicates anticipated the possibility of an increase in tobacco tax, so they stockpiled a larger quantity of illicit cigarettes ahead of time to supply the market after the tax hike,” he said.
The untaxed cigarettes were discovered over the second phase of a citywide operation code-named “Tempest”, which involved the arrest of 776 people between February 29 and March 14.
During the first round of the operation, which took place between February 19 and 28, Customs detained 538 people and seized HK$62 million worth of illegal tobacco products in 10 days.
Flava brand vaping products have been pulled from store shelves in the Philippines amid allegations of illegal marketing to minors and tax evasion, the Department of Trade and Industry has said.
The DTI’s Fair Trade Enforcement Bureau (FTEB) on March 15 ordered Flava Corporation, Lilac’s Vape Shop, and social media influencer Lilac Sison Tayaban, CEO of Flava, to refrain from manufacturing, importing, selling, packaging and distributing imported Flava vapes, according to media reports.
Once the Sampaloc, Manila-based business receives the preliminary order issued by DTI-FTEB, all of Flava’s commercial activities must immediately stop.
Flava was the respondent to formal charges alleging violations of Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, filed before the DTI-FTEB on March 14.
In turn, the DTI-FTEB gave the preliminary order to confiscate Flava products that violate RA 11900, to prevent the disposition or tampering of evidence and the continuation of the acts being complained of.
The DTI is the lead implementing and enforcement agency of RA 11900, the landmark law aimed at protecting minors from vaping. The House Ways and Means Committee earlier estimated as much as P728 million ($1.3 million) in foregone tax revenues from the alleged technical smuggling of P1.4 billion worth of illicit Flava devices last year.
After laboratory testing, The House panel discovered that Flava had not declared the vapes it imported from China. Flava allegedly mislabeled its ingredient as freebase nicotine, which has a lower excise tax than nicotine salt — the nicotine used in Flava products.
Also, the House committee discovered Flava’s aggressive marketing of its flavored vapes to minors, most especially on social media—a violation of RA 11900. Last week, Bureau of Internal Revenue commissioner Romeo Lumagui Jr. disclosed that the taxman seized 1,029 master boxes of Flava vapes from a warehouse in San Pablo City, Laguna, with tax deficiencies totaling P75.7 million.
The BIR raid conducted together with the Laguna provincial field unit of the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) also led to the arrest of two individuals manning the warehouse.
As such, the BIR will file criminal tax evasion charges against Flava.
“This successful raid of a vape warehouse containing 102,900 bottles of Flava vape products will be one of many. The BIR supports the whole of the government’s approach to eradicating illicit vape products. We have warned you as early as 2022. Our raids are successful. We won the criminal cases. You already have pending warrants of arrest. Register and pay your proper taxes, or suffer the consequences,” Lumagui said.
Meanwhile, Consumer Protection Group spokesperson, Trade Assistant Secretary Amanda Nograles said they will check the report of the Philippine Drug Enforcement Agency that marijuana-laced electronic cigarettes or vapes are now proliferating in the market.
“That report alarms us, especially when these will be sold to minors. Since the information was just new, then we will get additional information. But the DTI will continue to confiscate vape products with flavor descriptors and have cartoon characters that are appealing to minors, and products that use influencers,” Nograles said in a radio interview.
She said if the DTI encountered or confiscated vapes with marijuana oil, then they would refer it to the PDEA.
On Thursday PDEA operatives seized cannabis oil and ‘kush’, and assorted vaping devices, with an estimated total value of P842,000 in simultaneous raids in Taguig City.
U.K. firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, according to the Local Government Association (LGA).
Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.
The LGA has said the proposed fine is too low and might let businesses off the hook. However, a minority could see the fine as a price worth paying to continue selling the products, it said.
“We’re delighted that the government is taking decisive action to ban disposable vapes,” Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said, according to media reports. “However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”
Firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, the Local Government Association (LGA) has said.
Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.
The LGA has said the proposed fine is too low and might let businesses off the hook. A minority could see the fine as a price worth paying to continue to sell the products, it said.
Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said: “We’re delighted that the government is taking decisive action to ban disposable vapes. However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”
According to LGA analysis, councils can impose larger penalties for other offenses, including up to £500 for littering, £500 for excessive noise from licensed premises, £200 for a business failing to put up “no smoking” signs, and up to £150 for unauthorized distribution of free leaflets on public land.
The LGA, representing councils in England and Wales, calls for the government to amend the tobacco and vaping bill to allow councils to impose more severe fines.
S.18 would end retail sales of all flavored e-cigarettes, e-liquids, and oral nicotine pouches. The bill would also end the sale of all menthol-flavored tobacco products, including cigarettes, cigars, pipe tobacco, and smokeless tobacco, by January 1st, 2026.
The legislation, which has been debated for at least six years, faced a fierce lobbying campaign from retailers who said it would put many out of business. Some lawmakers have also balked at the loss of millions in tax revenue, according to media reports.
But supporters say the adverse health impacts on young people who get hooked on the products are just too great. Lawmakers spoke on the House floor Thursday about the extensive testimony from medical professionals, educators, parents, and members of the BIPOC community in support of the bill.
The bill will now return to the Senate, which passed a different version of the bill last year. The governor has not yet indicated if he will sign it.
A law group in California has filed a lawsuit against Philip Morris in the state’s Southern District. The Schmidt National Law Group claims that the maker of Zyn is targeting children and young adults with its flavored nicotine pouches.
“Now comes along Zyn the chewing gum, and the common denominator of all these nicotine delivery systems is as far as targeting towards kids, and I’m talking about kids, middle school, high school, younger and younger,” said Martin Schmidt, managing attorney at The Schmidt National Law Group.
Although a person must be at least 21 years old to purchase the product legally, Schmidt says it is very accessible to people younger than 21. The class action lawsuit seeks “damages” from Philip Morris and Schmidt said he would like stricter limits on access to the product, according to media reports.
The case could take years to work its way through the litigation process, according to Schmidt.
Chinese liquor company Luzhou Laojiao and Cuban cigar company Habanos SA have signed a strategic agreement to jointly expand their markets.
During the 24th Habano Festival in Havana, Cuba, Zhang Biao, general manager of Luzhou Laojiao, highlighted the similarities between Luzhou Laojiao’s liquor and Cuban cigars, noting that the cooperation will strengthen the commercial ties between China and Cuba.
The agreement includes a joint product through co-branding, with the Chinese company handling the marketing. José María López, vice president of development at Habanos, said that this partnership is based on shared values such as craftsmanship, quality and leadership, highlighting the “perfect match” between Chinese liquors and Cuban cigars.
Habanos executives reported that China is one of the most dynamic markets for Cuban cigar sales. The country contributed heavily to a 31 percent increase in Cuban cigar sales in 2023, reaching a total of $721 million.
The signing of the Memorandum of Understanding aims to explore new avenues of cooperation for both companies. Luzhou Laojiao, one of China’s oldest liquors, has been produced in the National Treasure Cellars since 1573, with distillation technology dating back 700 years.
The collaboration will focus specifically on Luzhou Laojiao’s “Guojiao 1573” brand and Habanos Corporation’s Cohiba Atmosphere brand. In addition, seven Guojiao 1573 brand liqueurs were auctioned along with during the festival’s humidor auction, with the funds raised going to public health initiatives in Cuba.
“This strategic agreement strengthens commercial ties between China and Cuba in the liquor and cigar industries,” according to a press release.
