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  • China: Flavored E-cigarettes Still Available After Ban

    China: Flavored E-cigarettes Still Available After Ban

    Photo: Timothy Donahue

    Many businesses in China continued selling fruit-flavored e-cigarettes after a ban on such products took effect Oct. 1.

    A journalist working for Beijing Youth Daily reportedly found several stores violating the new rules while a small number appeared to have closed.

    In stores that are still in operation, the reporter saw only an estimated six vaping products on display, with only two or three varieties of products. Some stores experienced increased sales of combustible tobacco products.

    In November 2021, Chinese law was amended to bring the vapor industry under control of the State Tobacco Monopoly Administration, which regulates China’s tobacco products.

    Products meant for export will not have to meet Chinese standards unless the destination country does not have its own specific standards.

  • New Date for UKVIA Forum and Dinner

    New Date for UKVIA Forum and Dinner

    The UKVIA Vaping Industry Forum and Celebration Dinner will now take place on Friday, Nov. 18 at the QEII Centre in Westminster, London. The event had been canceled on Sept. 9, the day after the queen’s passing.

    The agenda remains the same, and the UKVIA expects some additional speakers to be part of the lineup.

    “We have had a fantastic response since the event was canceled, and we are looking to accommodate some additional speakers in our program,” said UKVIA Director General John Dunne in a statement. “We would like to thank delegates, sponsors, exhibitors and dinner guests for their patience, and we look forward to seeing everyone in November at what will be the biggest B2B event in the U.K. vaping calendar.

    “The occasion will be particularly poignant as the original planned forum and dinner came the day after the announcement of the queen’s death. The event will allow us to pay tribute to Britain’s longest reigning monarch.”

    While the original event had been at near full capacity, more tickets for the conference and dinner have now been released.

  • PMI Extends Swedish Match Bid Deadline

    PMI Extends Swedish Match Bid Deadline

    Photo: xtock

    Philip Morris Holland Holdings (PMHH) has extended the acceptance deadline of its $16 billion offer for Swedish Match to Nov. 4, 2022, as it awaits merger control approval from the European Commission.

    In May, PMI offered to buy the Stockholm-based company to help accelerate its move to cigarette alternatives. Swedish Match is best known for its oral tobacco products, including snus and the Zyn tobacco-free nicotine pouches that have taken the U.S. market by storm.

    The completion of the offer is conditional upon regulatory approvals. PMHH says it has already received the green light in the United States and Brazil but is still awaiting approval from the European Commission, which started its formal review on Sept. 6, 2022. PMHH decided to extend the deadline because it does not expect the Commission to complete its review until late October.

    This is the second deadline extension. In early September, PMHH extended its initial Sept. 30 deadline to Oct. 11, based on its assessment of the European Commission’s progress with the review at the time.

    According to PMHH, the other terms and conditions of its offer remain unchanged. “We believe our offer remains very compelling—particularly given the current market environment,” said Jacek Olczak, chief executive officer of Philip Morris International, in a statement. “We look forward to completing the transaction while also continuing to actively progress on our strategic alternatives to Swedish Match, should the offer ultimately prove unsuccessful.”

  • Qnovia Raises $17 million for Nebulizer

    Qnovia Raises $17 million for Nebulizer

    Photo: Qnovia

    Qnovia has raised $17 million to continue development of its RespiRx nicotine-replacement product, reports Richmond Business Sense.

    RespiRx is a portable, hand-held nebulizer, a powered medical device that delivers medicine as an inhaled mist and is similar to an inhaler. The device is designed to deliver a nicotine hit more quickly than existing therapies, thus enabling users to better manage withdrawals and, therefore, increase the likelihood of smoking cessation.

    Qnovia was founded in 2018 in Los Angeles by Mario Danek as Respira Technologies and rebranded in September. In May, the company appointed former Altria executive Brian Quigley as CEO and Danek as chief technology officer.

    The company also moved to Richmond, Virginia, in part because that state offers a more business-friendly environment, according to Quigley, whose tobacco career included a six-year stint as CEO of Altria’s U.S. Smokeless Tobacco Co. subsidiary.

    In addition, many of the partners the company works with are on the East Coast. Qnovia contracts with a Boston manufacturer to make its device and a firm in Pennsylvania to create the medicine administered through the device.

    Qnovia will use the newly raised funds to develop a proof of concept for RespiRx as a nicotine-replacement therapy product and move it through an FDA approval process before the anticipated start of human clinical trials in 2023.

    The product is expected to hit the market as a prescription treatment. Qnovia is also interested in exploring how RespiRx can be used for asthma, pain management, vaccines and other uses.

  • Scots Urged to Rethink Vape Ad Restrictions

    Scots Urged to Rethink Vape Ad Restrictions

    Photo: jazrotorman

    The U.K. Vaping Industry Association (UKVIA) has called on the Scottish government to reconsider its proposal to tighten advertising restrictions on vaping.

    The call follows the publication of the outcomes of the government’s consultation on the plan. According to the UKVIA, the feedback from the consultation, which involved the input of individuals, local authorities, public health organizations and the vaping community, clearly shows that there is no majority of support for the recommendations put forward by the government, instead dividing opinions and leaving more questions than answers on the future of vaping regulations.

    At the time the consultation went live, the UKVIA warned that the Scottish government’s proposals could derail the country’s 2034 smoke-free ambitions and that its stance is “in denial of the facts,” creating a significant risk to the health of people of Scotland looking to quit smoking as well as more uncertainty around vaping caused by misinformation.”

    The proposals that were put forward only sought to further conflate vaping with combustible tobacco products by aligning advertising and promotion rules to existing restrictions on tobacco products.

    John Dunne, director general, UKVIA

    The UKVIA’s position was echoed by the Scottish Grocer’s Federation, which stated that the Scottish government’s move was unjustified and failed to appreciate the potential benefits of vaping products.

    Many proposals put forward by the government generated 50-50 responses, and a number resulted in more respondents disagreeing than agreeing with them. These included proposals to ban in-store promotional displays, to make free distribution and nominal pricing of vaping products an offense and to make sponsorship agreements in respect to vaping products an offense. A higher proportion of respondents indicated that the proposed policy would have a negative impact on individuals (50.5 percent who felt it would versus 36.9 percent who didn’t) and on those with socioeconomic disadvantages (48.6 percent versus 25.5 percent).

    “The proposals that were put forward only sought to further conflate vaping with combustible tobacco products by aligning advertising and promotion rules to existing restrictions on tobacco products,” said John Dunne, director general of the UKVIA, in a statment.

    “Only by working with others, following the evidence and listening to people’s testimonies can we succeed in the goal of tobacco harm reduction.

  • Investor Suit Against RLX Dismissed

    Investor Suit Against RLX Dismissed

    Photo: Gorodenkoff

    A U.S. federal judge dismissed a class-action lawsuit brought against RLX Technology by investors who claimed that the company overestimated its financial prospects before its initial public offering, reports Lexis Legal News.

    Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York found that RLX Technology did not misrepresent or omit known information about the future regulation of e-cigarettes in China.

    “[T]he Offering Materials adequately disclosed the possibility of stricter regulations—indeed, the possible outright prohibition—of e-cigarettes in China,” Engelmayer wrote. The judge also found that the plaintiffs lacked standing to bring a claim because they did not purchase their shares in the IPO.

    Founded in 2018, Beijing-based RLX went public on the New York Stock Exchange in January 2021. The offering raised $1.39 billion, according to data provider Dealogic. Its stock price fell sharply after Chinese regulators in March proposed treating vapor products like regular cigarettes.

    The value of RLX shares dropped nearly 48 percent from $19.46 per share on March 19 to $10.15 at closing on March 22. As of November, the shares were valued at just over $4.

    Certain investors later alleged that RLX in its offering documents made misleading statements about China’s regulations of e-cigarette products that made the company’s value appear to be greater than it is.

    It allegedly stated that its products were not subject to regulation and would not fall under China’s Tobacco Monopoly Law and failed to disclose that Chinese regulators were developing new standards for e-cigarettes under which they would be regulated in a manner similar to the way ordinary cigarettes are regulated.

    It also allegedly stated that it expected to continue profiting from China’s growing vaping market but allegedly failed to disclose how its profits would be affected by the new Chinese regulations of the vaping industry.

  • 22nd Century Partners With Creager Mercantile

    22nd Century Partners With Creager Mercantile

    Photo: Argus

    22nd Century Group has added Creager Mercantile as a distribution partner to expand availability and support for its VLN reduced nicotine content cigarette products in the U.S. state of Colorado.

    Operating since 1958, Creager is a well-known wholesale supplier for a wide array of cigarette retailers, including hospital gift shops, gas stations and tobacco shops across the state. The company supports more than 1,000 stores across numerous specialty and retail store brands. Combined with 22nd Century’s previously announced partnership with Eagle Rock Distributing Company, the company now has access to thousands of potential retail sites across the state that could be serviced by its VLN distribution partners.

    “We are excited to work with 22nd Century Group to make VLN available to adult smokers in Colorado who are looking for a new way to cut their ties to nicotine,” said Chip Creager, president of Creager Mercantile, in a statement. “Creager supports a diverse array of specialty stores, often advising retailers on the best new products to add to their shelves. We believe that VLN’s uniqueness as the first and only cigarette designed specifically to help smokers smoke less makes it an important and attractive product for adult smokers, and we will be actively working with our retail partners to launch VLN to their stores in the coming months.”

    Creager opens up an entire additional channel of specialty retail and tobacco suppliers across the state of Colorado.

    John J. Miller, president of 22nd Century’s tobacco business

    “Creager opens up an entire additional channel of specialty retail and tobacco suppliers across the state of Colorado, and its direct role in product recommendations and store support make it an ideal partner for 22nd Century’s VLN rollout,” said John J. Miller, president of 22nd Century’s tobacco business. “We look forward to working directly with Creager to place VLN on as many shelves as possible, making our important new product broadly available in as many locations as possible where traditional combustible cigarettes are sold.”

  • Survey Details Challenges to Progress

    Survey Details Challenges to Progress

    Gregoire Verdeaux (Photo: PMI)

    Despite broad public support for disruptive innovation to address global challenges, issues such as lack of equal access are likely to stall progress, a new international survey released by Philip Morris International reveals. Commissioned by PMI and conducted by independent research agency Povaddo, the survey shows that 89 percent of adults across 14 countries believe that new technologies and innovations can play an important role in improving public health. However, 38 percent feel such innovations are not accessible to all citizens in their countries.

    The more than 17,000 survey respondents aged 21 and older 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).

    “Disruptive innovation can drive progress for the world and achieve things few people imagined possible until recently,” said Gregoire Verdeaux, senior vice president of external affairs at PMI, in a statement. “But when the benefits of that disruption are not equally available to all, innovation fails to achieve its full potential. Pragmatic policy frameworks that anticipate innovations are needed so businesses and governments can ensure more equitable outcomes and a lasting impact for all.”

    The international survey also highlights the potential of positive disruption in tobacco harm reduction—with 64 percent of respondents stating that new technologies and innovations can play an important role in helping replace cigarettes with less harmful alternatives for those adults who would otherwise continue to smoke.

    “Today, with technological advances and scientific validation, we have an unprecedented opportunity to enact a major public health breakthrough—to effectively eradicate smoking faster,” added Verdeaux. “We can make this the tipping point at which millions of adult smokers are given accurate information about and access to innovative smoke-free products that are a much better choice than continued smoking. But for that to happen, all parties—businesses, governments, public health authorities—must work together.”

  • BAT Publishes Low-Carbon Transition Plan

    BAT Publishes Low-Carbon Transition Plan

    Photo: BAT

    BAT has published its Low-Carbon Transition Plan, detailing the actions it will take to reach its climate targets. This includes halving absolute emissions across its value chain by 2030, from a 2020 baseline, and to be net-zero across its value chain by 2050 at the latest.

    “We’re proud to take this latest step in our sustainability journey,” said Kingsley Wheaton, BAT’s chief growth officer, in a statement. “By outlining the measures we will take to live up to our net-zero targets through our Low-Carbon Transition Plan, we’re demonstrating our continuing commitment to building ‘A Better Tomorrow.’ As a global company, we know minimizing impacts across our value chain is the right thing to do, as well as making sound business sense. That is why we have set stretching science-based climate-related targets and continue to embed sustainability across our business.”

    BAT has committed to reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 50 percent by 2030 from a 2020 base year.

    According to the CDP, tackling Scope 3 emissions, which are indirect emissions from BAT’s value chain, will be the most critical and challenging for the sector, and it constitutes the majority of BAT’s total carbon footprint.

    For these Scope 3 emissions, BAT has committed to reduce emissions by 50 percent by 2030 from a 2020 base year by: partnering with suppliers, especially those contributing the most emissions, to ensure sustainability progress; progressively transitioning from air to sea freight as a lower carbon mode of transport on the occasions that products go by air; collaborating with farmers on carbon-smart tobacco leaf farming and other projects; and fostering circularity throughout R&D, designing for end-of-life processes and promoting eco-design principles.

  • IEVA Opposes Dutch Flavor Ban

    IEVA Opposes Dutch Flavor Ban

    Photo: Wirestock

    The Independent European Vape Alliance (IEVA) has expressed concerns about the Draft Amendment of the Tobacco and Smoking Products Order for regulation of e-cigarette flavors presented by the Dutch Ministry of Public Health, Welfare and Sports.

    According to the statement submitted by the Dutch authorities, the draft amendment intends to ban flavors other than tobacco in e-liquids in order to “reduce the temptation for young people and former smokers to purchase e-cigarettes.” The measure, authorities note, is “justified by the need to protect public health.”

    The proposal also suggests that the Netherlands will be more likely to achieve its objective of a smoke-free generation by 2040 if e-cigarettes are rendered less attractive.

    According to the IEVA, the proposed flavor ban is neither proportional nor necessary, as it is too strong a measure for the objective it seeks to achieve and fails the EU requirement that member states choose the means that least restricts the free movement of goods.

    The IEVA insists that the ban will boost black market activity and jeopardize tens of thousands of jobs while leading to a reduction in government revenues by reducing tax collection.