Category: News This Week

Comment Period on Dutch Flavor Ban Closing Soon

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The Dutch government’s public consultation period for a potential ban of flavored vaping products will close Sept. 28, reports Vaping360.
The new rule would ban all e-liquid flavors except tobacco and is scheduled to take effect Jan. 1, 2023. However, products already on the market by Dec. 31 can be sold until July 1, 2023.
The Dutch National Institute for Public Health and the Environment and the Ministry of Health have proposed a list of just 16 ingredients that would be allowed in legal tobacco-flavored e-liquids.
Dutch vaping industry advocates claim the ingredient restrictions will essentially put all e-liquid manufacturers in the Netherlands out of business.
The comment period is open to the public, and Dutch e-cigarette advocates are asking consumers from the Netherlands and elsewhere to share their thoughts on the Dutch government’s e-cigarette consultation webpage.
Previous efforts to ban flavored vapes in the Netherlands have failed.
September 26, 2022
Maine Backs Out of Juul Settlement

Photo: Carsten Reisinger
Maine is backing out of a multi-state settlement with Juul Labs over the e-cigarette manufacturer’s marketing practices after objecting to certain conditions from the company.
Maine was set to receive an estimated $11.6 million over the next six years to 10 years as part of a nearly $440 million settlement between the manufacturer and 33 states and territories. The investigation found that Juul had marketed its products to youth.
However, as part of the agreement, Juul wanted states to waive the rights of school districts to pursue their own lawsuits, according to the Maine attorney general’s office. Maine is unwilling to agree to that.
“We are disappointed in the outcome of these negotiations, but ultimately, we were unwilling to waive the rights of other entities who are also trying to hold Juul accountable for its deception,” Attorney General Aaron Frey said in a statement to The Maine Monitor.
September 26, 2022
FDA Seeks TPSAC Nominations

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The U.S. Food and Drug Administration’s Center for Tobacco Products is requesting nominations for two individuals to serve as voting members on the Tobacco Products Scientific Advisory Committee (TPSAC). According the FDA website, individuals may self-nominate or be nominated by any interested person or organization.
Nominations received on or before Nov. 25, 2022, will be given first consideration. Nominations received after Nov. 25, 2022, will be considered as later vacancies occur.
TPSAC advises the CTP in its responsibilities related to the regulation of tobacco products. The committee reviews and evaluates safety, dependence and health issues concerning tobacco products and provides appropriate advice, information and recommendations to the FDA commissioner.
The notice has been published in the Federal Register.
September 26, 2022
South Africa: Treasury Stands by Tax Proposal

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The National Treasury and South African Revenue Service (SARS) is standing by its e-cigarette tax proposals despite protests from businesses, reports Businesstech.
Speaking to the parliamentary standing committee on finance this week, the National Treasury and SARS responded to comments by businesses regarding changes proposed under both the Draft Tax Administration Amendment Bill and the Taxation Laws Amendment Bill.
The National Treasury wants to apply an average excise rate for e-cigarettes of ZAR2.91 ($0.16) per milliliter and apportioned in a ratio of 70:30 between nicotine and non-nicotine elements.
Vapor companies said that considering South African consumers’ purchasing power, a ZAR0.70 duty per milliliter is more than appropriate.
The industry also cautioned that excise duty on vaping products would affect the trade of legitimate tax-paying vendors, drive job losses in the sector and drive consumers to more harmful combustible cigarettes.
The National Treasury countered that the tax is necessary and legitimate and would assist in closing regulatory loopholes that leave South Africans in vulnerable positions.
It added that the long-term health effect of e-cigarettes are unknown, and therefore the government is taking cautionary steps, even if vaping is marketed as a less harmful alternative to smoking.
The current proposed rate is an introductory rate that may be adjusted in the short term to medium term, the treasury said.
September 26, 2022
Malaysia to Table ‘Endgame’ Bill

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The government of Malaysia plans to table its ‘generational endgame’ (GEG) bill during the next parliamentary session in October after making amendments to address concerns by some lawmakers, reports Bloomberg.
Announced in February, the GEG would make it illegal for people born after 2007 to buy, possess or use tobacco-related products, including e-cigarettes. The bill was referred to a parliamentary select committee in August for further scrutiny amid criticism that some of its features would infringe on personal freedom.
Health Minister Khairy Jamaluddin believes the amendments have addressed critics’ concerns.
“The enforcement powers really are focused and restricted only against distribution, manufacturing and supply,” Khairy said on Sept. 23. “We’ve clarified that in the latest amendments, so if you contravene the law in terms of GEG smoking offense, then the enforcement officer cannot frisk you; they cannot take away your computer or your phone or things like that.”
Malaysian lawmakers delayed a vote last month on the bill and referred it to the select committee to examine and make recommendations for improvement.
September 26, 2022
Hong Kong: Record Seizures of Cigarettes

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Hong Kong authorities confiscated HKD1.23 billion ($157 million) worth of illicit cigarettes to date this year—the largest haul of the contraband in 20 years, reports the South China Morning Post, citing figures from the Customs and Excise Department.
As of Sept. 22 this year, customs officials had seized about 440 million untaxed cigarettes, well above the 427 million cigarettes worth HKD1.19 billion found in the whole of 2021.
If legally imported, this year’s contraband would have generated HKD839 million in tax, according to a law enforcement source.
The source attributed the rise in contraband seizures to the resumption of seaborn logistics after Covid-19 disruptions and a possible rise in the price of tobacco products in Europe.
“As the resumption of seaborne logistics business in May, syndicates have started to accumulate their storage of illicit cigarettes in the city while trying to find buyers in Hong Kong and overseas,” the source told the South China Morning Post.
He said some of the gangs also stockpiled a huge volume of illicit cigarettes in the city as they anticipated a possible rise in the price of tobacco products in Europe amid high inflation.
This year’s seizures reached 440 million cigarettes after authorities discovered 21.6 million untaxed cigarettes worth HKD59 million hidden in two shipping containers in Tsing Yi and Yuen Long in their latest operation on Sept. 19.
September 23, 2022
Hospitality Sector Frets About ‘Endgame’ Bill

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Representatives of the hospitality business have asked the government of Malaysia to consider the impact of its proposed “generational endgame” (GEG) law on operations of food and beverage outlets in the country, reports the New Straits Times.
On Feb. 17, Minister of Health Khairy Jamaluddin announced that Malaysia would introduce bold new legislation to ban smoking and vaping and possession of tobacco products and e-cigarettes for people born after 2005.
“We are supportive of the Health Ministry’s agenda in reducing the number of smokers in the country,” said Wong Teu Hoon, president of Malaysian Singapore Coffeeshop Proprietors’ General Association (MSCSPGA) “However, we strongly believe any new measures should be carefully evaluated when it has a socioeconomic impact.”
The MSCSPGA, which has 43 affiliates under it, is one of the largest trader associations in the country, boasting a membership of 20,000 coffeeshop operators nationwide and employing some 500,000 people.
Wong’s view was echoed by C. Krishnan, deputy president of the Malaysian Indian Restaurant Owners Association, who called for a detailed study and consultation with the retailers and other stakeholders.
Krishnan worries that the ministry has insufficient manpower to control and inspect every tobacco-based product purchase.
“Therefore, we (retailers) automatically become the frontliners in the implementation of the GEG bill,” he said. “Let’s not forget the issue of asking for identity cards. We are afraid that this will lead to arguments and unpleasant situations in our outlets, which any coffeeshop owner knows is bad for business.”
September 23, 2022
Myle Vape Opens Dubai Office

Photo courtesy of Myle Vape
Myle Vape has opened an office and warehouse facility in Dubai to service its customers in the Middle East. The United Arab Emirates is one of Myle Vape’s most important markets in terms of brand loyalty and market share.
“This move has been in the works for some time, and we could not be happier to announce this opening,” said Myle Vape co-founder and CEO Ariel Gorelik in a statement. “We have been operating from afar for too long, traveling back and forth from the USA multiple times a year, and it has become critical to the growth of our business that we made a serious move to [build] a major operations center in the UAE.”
Launched in 2015, Myle Vape manufactures disposables, pod systems, rechargeable devices and vape accessories that are distributed globally outside the United States.
September 23, 2022
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.”
September 22, 2022
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.
September 22, 2022