Author: Timothy Donahue

  • Hopkins Promoted to CEO, President of Kaival

    Hopkins Promoted to CEO, President of Kaival

    Photo: Gajus

    A former Altria executive has been promoted to CEO and resident of Kaival Brands Innovations Group, Inc. The company announced that it has expanded the role of Executive Chairman Barry Hopkins to include the additional positions.

    Former CEO and president, Eric Mosser, has been appointed CEO and president of Kaival Brands International, a Kaival Brands Innovations Group’s subsidiary with an international licensing relationship with Philip Morris Products.

    Niraj Patel, founder and chief science officer of Kaival Brands, said that from the beginning he has envisioned a diverse platform that could “capture the tailwinds” generated by the company’s core offering, the BIDI Stick electronic nicotine delivery system (ENDS) product.

    “Barry understands this vision, the importance of regulatory compliance and youth access prevention, and has done an exceptional job since joining Kaival Brands. He has eagerly taken on increasing levels of responsibility, leveraging his decades of experience in management in our industry,” said Patel in a press release. “His appointment as Interim CEO and president was a natural progression, and we look forward to potentially expanding our excellent management team further during 2024 with a permanent CEO and/or president as our needs dictate.

    “Having Barry in this position now is particularly important since we are at a significant inflection point, as we remain hopeful that FDA will soon complete its review of the pending premarket tobacco product application (PMTA) for the tobacco-flavored BIDI Stick Classic. If we receive a marketing granted order for this product, we will have significant momentum in the new year with the ability to continue to transition adult cigarette smokers, drive revenue and grow our company.”

    According to a recent U.S. Food and Drug Administration announcement, the agency’s next status report regarding its review of the still-pending PMTAs for major brands and market share leading ENDS products is due to be filed by January 22, 2024 with the U.S. District Court in Maryland.

    Although FDA has not indicated publicly which PMTAs it is prioritizing for review, Kaival Brands is hopeful that the BIDI Stick Classic will be included in the January status report. The company also anticipates the PMTAs for the other 10 BIDI-branded SKUs will remain in scientific review, according to Patel.

    Recently, the Kaival Brands has been encouraged by the coordinated efforts of the FDA, U.S. Customs and Border Protection, and other government agencies to increase their coordinated focus on enforcement. The company believes it has been hurt by illicit vaping products flooding the market, and it is now preparing to scale along with other legal products, assuming increased enforcement continues alongside the January announcement by the FDA.

    “Hopkins will spearhead the company under the direction of the Board of Directors with a continued focus on accelerating revenue growth, improving operational efficiencies and executing Kaival Brands’ strategic growth and diversification initiatives, while remaining in compliance with applicable state and federal regulations.

    “The company, alongside BIDI Vapor (the maker of the BIDI Stick), is also continuing to focus on working with Philip Morris to accelerate the international distribution of ENDS products using BIDI technology (which Philip Morris markets under the brand name ‘VEEV Now’), as part of Philip Morris’s plan to deliver a smoke-free future.”

  • New Year Begins Belgium’s Vaping Tax

    New Year Begins Belgium’s Vaping Tax

    Credit: Master Sergeant

    Beginning January 1, 2024, Belgium will introduce a new tax on e-liquids used in electronic cigarettes. The tax will be set at 15 cents per milliliter.

    The move has received criticism from both users and retailers who fear that it will lead to increased costs and a potential shift back to traditional tobacco cigarettes.

    The spokesperson for the federal Finance Minister defended the tax, stating that it aligns with Germany’s tax rate, which is also set to increase in the coming years, according to media reports.

    They further clarified that the goal is not to encourage people to return to smoking combustible cigarettes but to recognize that e-cigarettes are also tobacco products and should be used as a temporary measure to quit smoking.

  • U.S. Premium Cigar Imports Flat in 2023

    U.S. Premium Cigar Imports Flat in 2023

    A recent report by the Cigar Association of America (CAA), an industry trade group, found that the United States imported a total of 338.87 million premium cigars between January and September 2023. The amount is only 2.61 million cigars less than the number imported during the same period in 2022. This represents a decrease of 0.8 percent.

    “As of the end of the third quarter this year, premium imports have climbed back to near breakeven when comparing this year with the third quarter in 2022,” said Daniel Cotter, chief statistician for CAA, in a press release. “The data show the low point when comparing this year to last year was at the end of April. As of 4/30/23, premium imports were down almost 7 percent year-over-year (YOY).”

    Nicaragua continues to be the top supplier of premium cigars to the U.S. with 181.41 million premium cigars imported in the first nine months, accounting for roughly 53.5 percent of all imports.

    The Dominican Republic, which accounts for 30.7 percent of imports, has had increased exports for most of 2023, compared to 2022.

    In order to surpass 2022 imports, the U.S. would need to import an average of 41 million cigars per month. CAA calculates its numbers based on both the import data provided by the U.S. Census Bureau and U.S. Customs Services, as well as information from cigar companies themselves.

  • Habanos Debuts ‘El Rey Del Mundo Royal’

    Habanos Debuts ‘El Rey Del Mundo Royal’

    The El Rey del Mundo Royal Series (50 ring gauge x 155 mm length).

    Habanos S.A. released its latest vitola, the El Rey Del Mundo Royal Series, at an event in Cyprus last week. The event was put on one of Habanos’, the Cuban cigar industry’s distribution arms exclusive distributors, Phoenicia T.A.A.

    The Royal Series (50 ring gauge x 155 mm length) will be on sale exclusively at La Casa Del Habano franchise stores.

    The company also unveiled new products such as the Edición Regional Por La Larrañaga Fénix, and the new Cohiba Wide Short (machine-made Cuban cigar).

    The launch of the new vitola shared the spotlight with both companies celebrating 15 years of a “fruitful business partnership,” according to an emailed release.

    The event brought together more than 450 aficionados from Lebanon, United Arab Emirates, Qatar, Kuwait, Malta, Italy, France, Spain, Germany, United Kingdom, the Democratic Republic of Congo, Switzerland, the Netherlands, Kuwait, Bulgaria, Canada and Bahrain.

    Also in attendance were the co-presidents of Habanos, Maritza Carillo González and Luis Sánchez-Harguindey Pardo de Vera.

  • Panama’s Vapes Ban Heads to Supreme Court

    Panama’s Vapes Ban Heads to Supreme Court

    The Supreme Court of Panama has decided to hear a lawsuit challenging the constitutionality of the country’s ban on e-cigarettes and heated tobacco products.

    In early August, the Panamanian Tobacco Harm Reduction Association (ARDTP) filed a lawsuit with the Supreme Court, arguing that Law No. 315, which prohibits the use, sale, and import of e-cigarettes and heated tobacco in the country, is unconstitutional and should be repealed.

    The Panama Association for Tobacco Damage Reduction (ARDTP) had its appeal case advanced by the Supreme Court on Sept. 21 following a lawsuit, according to media reports.

    If the Supreme Court deems the unconstitutional statement valid, the 315 bill will return to the legislative body for modifications.

    Once the bill is amended, it will be resubmitted to the Supreme Court to confirm its constitutionality. A proposed new law is being drafted to replace the current 315 bill, thereby supporting provisions based on “risk.”

    Panama is one of several Latin American countries, including Mexico, Argentina, and Venezuela, that have implemented strict legislation since 2022 to restrict the use, sale, and import/export of vaping products.

    Many harm reduction advocates argue that the enactment of such legislation has resulted in the creation of a black market for safer nicotine products within their respective countries.

    The World Vapers Alliance (WVA) states that Panama’s Supreme Court’s decision to hear this lawsuit is a positive first step.

  • BAT Ups Investment in Organigram

    BAT Ups Investment in Organigram

    Credit: Roxxy Photos

    Organigram Holdings Inc. has extended its relationship with British American Tobacco. The move boosts the Canadian cannabis producer’s financial strength and positioning it to expand globally.

    Organigram said in a statement that BAT is investing a further $90.5 million in the business, building on an initial $160 million injection back in 2021.

    Organigram said the investment will allow it to extend its footprint beyond Canada, and also strengthen its financial position for long-term, sustainable growth, according to media reports.

    “This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company,” said Beena Goldenberg, chief executive of Organigram.

    The firm said the deal enables it to invest in growing the topline of its core business, while optimizing operations to deliver on cost-saving efficiencies, thus accelerating earnings growth.

    Organigram will use the majority of the investment to create a strategic investment pool, named Jupiter.

    Jupiter will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets, it said.

  • Habanos Announces Habano Festival Dates

    Habanos Announces Habano Festival Dates

    Credit: Timothy S Donahue

    The dates for the XXIV Edition of the Habano Festival, have been announced. The exclusive cigar event is to be held in Havana from Feb. 26 – to March 1, 2024.

    Habanos, S.A., the state-run distributor of global Cuban cigars, said in a release that its annual event is “in an international and exclusive atmosphere,” and it will include a wide-ranging program of activities combining the knowledge of the Habano and the exciting culture, including the ending final evening gala dinner and famed humidor auction.

    “In this XXIV Edition, the best specialists, distributors and aficionados will enjoy all the activities that along with the best gastronomy and music have made this famous event: visits to renowned Habanos factories, plantations, seminars with interesting lectures, exclusives pairings, contests and three very special nights where they will get a sneak preview of the latest Habanos, S.A. novelties,” the release states. 

    Habanos, S.A. is already “working to make this event memorable for the expectations of aficionados with the passion and magic that they have come to expect from each new edition.”

    More details on the Habano Festival will be announced soon and registration will be open to the public.

  • BAT Taps Arvato for German Vape Logistics

    BAT Taps Arvato for German Vape Logistics

    BAT Germany has selected Arvato as its logistics and fulfillment partner for its e-commerce operations encompassing e-cigarettes and heated tobacco products.

    Since the end of June, BAT Germany online orders have been processed centrally from the site in Marienfeld, Guetersloh district. At this site, Arvato, a leading supply chain and e-commerce service provider, operates a state-of-the-art distribution center spanning approximately 32,000 square meters, serving multiple clients in the technology sector, according to the American Journal of Transportation (AJOT).

    The comprehensive logistics services provided for BAT Germany at the facility encompass goods receipt, storage, order picking, packing, and shipping, as well as returns management.

    “BAT’s goal in awarding the e-commerce logistics contract was to guarantee the most efficient and fastest delivery service for its customers. Our customer-centric approach allowed us to accommodate BAT’s specific processes and requirements,” says Thomas Becker, executive vice president at Arvato.

    The logistics service provider commits to delivering within a 48-hour timeframe. To optimize warehouse operations for efficiency and speed, Arvato heavily integrates automation technology. Automated carton setup and closure processes significantly enhance the speed of operation. Moreover, product information is automatically included with orders through flyer dispensers.

    “With its experienced team, Arvato provided us with very flexible and reliable support in setting up our logistics and distribution concept,” confirms Robert Juhnke, distribution manager at BAT Germany. “Even throughout the offer and final negotiation phase, the collaboration has been exceptionally cooperative.”

    Sustainability is a growing trend in the vaping industry. Arvato is dedicated to doing its part, according to the AJOT story. In an effort to reduce plastic waste, the company adopted wet adhesive tape made from recycled paper, resulting in the annual saving of approximately 16 tons of plastic, as an alternative to polypropylene adhesive tape. Arvato’s approach to optimizing shipment sizing and processing minimizes the consumption of packaging materials.

  • Snowplus to Launch Gold Bar and Clic in U.K.

    Snowplus to Launch Gold Bar and Clic in U.K.

    Snowplus will soon launch two all-new disposable e-cigarettes. The Snowplus Gold Bar and Snowplus Clic are the first 5,000 puffs TPD-compliant devices to come to market, according to an emailed press release.

    Debuting at the Vaper Expo UK, to be held from October 27-29 in Birmingham, England, the new products represent a “pioneering innovation” in the vaping market, according to Snowplus.

    “The Snowplus Gold Bar will be the game-changer in the industry, it will definitely lead the product development direction,” said a Snowplus spokesperson. “A 5,000-puff TPD disposable vape has never been seen in the UK market before.”

    All vaping products sold in the UK must comply with the EU Tobacco Products Directive (TPD). Most legal disposable vaping products in the UK deliver less than 800 puffs in order to meet TPD requirements.

    The Gold Bar and Clic models both feature transparent e-liquid tanks that give users a clear, real-time view of remaining juice levels. The products also utilize lab-tested mesh coils made of specialized materials to deliver consistent and authentic flavor across 16 different juice options.

    “Snowplus has pioneered responsible innovation since its founding in 2019,” the release states. “With $40 million in funding from renowned investors like Sequoia Capital, the company aims to provide better alternatives to combustible cigarettes for adult consumers.”

    The Snowplus Gold Bar and Clic have also passed numerous third-party safety tests.

  • FDA Prevails in Logic Challenge

    FDA Prevails in Logic Challenge

    The U.S. Food and Drug Administration has defeated Logic Technology Development after the e-cigarette manufacturer asked the courts to block the regulatory agency’s market ban on Logic’s menthol-flavored e-cigarette products, according to media reports.

    Logic filed a petition for review in the U.S. Court of Appeals for the Third Circuit, alleging the FDA violated the Administrative Procedure Act when it denied Logic’s premarket tobacco product application to market its menthol-flavored vaping products. The court denied that petition Thursday after concluding the FDA “based decisions on scientific judgments.”

    Logic alleged it was arbitrary and capricious for the FDA to apply the same regulatory framework to menthol that it used to remove fruit- and dessert-flavored e-cigarettes from commerce. The Third Circuit Court entered a stay on the FDA’s marketing denial orders (MDOs) in December 2022. The MDOs were the FDA’s first-ever MDOs directed at menthol e-cigarette products.