Category: News This Week

  • Industry Group Opposes Flavored Cigar Ban

    Industry Group Opposes Flavored Cigar Ban

    Photo: Andrii

    The Cigar Association of America (CAA) has filed comments opposing the Food and Drug Administration’s (FDA) proposed flavored cigar ban, saying FDA’s own data show that underage usage of flavored cigars—the main rationale for the proposal—is at historic lows, after years of continued decline.

    “This clearly shows that FDA is proposing a solution in search of a problem. The underage usage of flavored cigars is minuscule,” said CAA President David M. Ozgo in a statement. “It is a blatant example of targeting an industry that is clearly marketing its products to legal age adults.”

    The comments note that one of the key purposes of the Tobacco Control Act—the law giving FDA authority to regulate tobacco—is to continue to permit the sale of tobacco products to adults, in conjunction with measures to ensure tobacco products are not sold or accessible to underage purchasers. The current historically low youth usage rates show the success of existing measures.

    According to the CAA, government evidence shows that youth usage of cigars is so low as to be almost immeasurable. When the FDA first sought to exercise regulatory authority over certain tobacco products in 1996, the only survey that tracked youth usage of cigars in 1997, the National Survey on Drug Use and Health (NSDUH), showed last 30-day youth usage at 5 percent in 1997. In 2020 NSDUH tracked last 30-day youth usage of cigars at 0.8 percent.

    The CAA comments highlight the most recent data from the government’s Population Assessment of Tobacco and Health Survey (PATH) showing that youth last 30-day usage of cigars overall was down to 0.75 percent and that youth usage of flavored cigars is around just 0.29 percent.

    “In short, youth usage of flavored cigars continues to decline to almost unmeasurable levels,” Ozgo stated in the filed comment. “FDA asserts that flavored cigars attract youth. If that were true, we would expect flavored cigars to account for a majority of youth cigar use,” the comment added.

    “But the government data clearly show that youth usage of flavored cigars is tiny and declining further,” Ozgo noted.

    The comments also state there is no scientific basis for the proposed ban, but there would be devastating economic consequences. Many small businesses, often minority owned, would be negatively impacted as well as an assortment of cigar manufacturers, suppliers and producing countries such as the Dominican Republic and Honduras.

    Additionally, the CAA comments go on to demonstrate how the FDA does not show any differentiated health effects posed by flavored cigars and that banning flavored cigars would only lead to the development of an unregulated illegal market for flavored cigars. Illegally produced and sold product can often have dangerous additives.

  • PMI Halts Cash-for-Vapes Program

    PMI Halts Cash-for-Vapes Program

    Photo: PMI

    Philip Morris International has paused a program that would have paid Australian pharmacists AUD275 ($190.24) when ordering Veev vapes, according to The Guardian.

    The scheme, first reported by News Corp., would have seen pharmacists receive AUD5 every time they dispense a new VEEV script, AUD10 for educating a new patient about the device, and AUD5 for referring patients to a doctor to obtain a prescription. Pharmacists would also receive a AUD275 payment for placing an initial stock order.

    Nicotine-containing vapor products are available only with a doctor’s prescription in Australia.

    The cash-for-vapes program caused an uproar among public health advocates.

    Emily Banks, a professor at Australian National University National Centre for Epidemiology and Population Health, said the tobacco industry wanted to piggyback off the trust Australians place in the healthcare system.

    “Big tobacco wants a piece of that—they want some of the trust to rub off. It’s beyond appalling.”

    “Big tobacco’s attempt at financial kickbacks shows absolute contempt for pharmacists,” said a spokesman for the Pharmaceutical Society of Australia. “Multinational tobacco companies have no place in health care.”

    In a statement, PMI defended the program, saying since 2021 nicotine vaping products had been available in Australian pharmacies as a prescription-only medicine for smoking cessation.

    “Several manufacturers, including PMI, have been providing nicotine vaping products to Australian pharmacies via the stringent regulatory regime. Industry data indicates that across multiple manufacturers products are now available in over 2,000 pharmacies nationwide,” the statement said.

  • BYD Gets Chinese E-Cigarette License

    BYD Gets Chinese E-Cigarette License

    There has been speculation for a few years now that the BYD, one of the largest companies in China, had plans to enter the e-cigarette market with its own brand. Better known as a car manufacturer and battery producer, BYD Electronic shares surged on the Stock Exchange of Hong Kong by as much as 12.5 percent Thursday after the company announced a subsidiary has been granted a license to produce vaping devices.

    “The unit has been granted a tobacco production business license by the State Tobacco Monopoly Administration [STMA],” BYD Electronic said on its WeChat account, according to YiCai Global. Such permits only started to be issued this year in accordance with new regulations. As of Aug. 4, more than 130 firms had been licensed, according to the STMA website.

    “The BYD subsidiary already has a full range of electronic atomization products ready to be patented and is investing in automated production lines, said BYD Electronic, which is the sister company of electric car and battery giant BYD Automobile,” the company stated in a release. “At present, BYD Electronics has completed the patent layout of a full range of electronic atomization products and the construction of automated production lines, fully integrating its own comprehensive capabilities such as new material research and development, precision molds, product design and development, and intelligent manufacturing, and is committed to becoming a Practitioners and leaders in the field of health harm reduction, providing users with excellent products of quality and peace of mind.”

    In 2021, BYD said its e-cigarette business was mainly based on brand OEMs, and “there is no independent listing plan.” BYD Electronics has operated in the e-cigarettes field since 2018. It launched the brand “Beem Core” for ceramic atomizing core technology in 2021.

    Once it starts full production, BYD will go head to head with industry leader Smoore International, which held 22.8 percent of global market share last year, according to Frost & Sullivan research.

    BYD Electronic was spun off from Shenzhen-based conglomerate BYD in 2007 to make cell phone components and printed circuit boards. Its business remit has since expanded to include smartphones, laptops, masks and now, e-cigarettes.

    BYD joins industry late-comer Luxshare Precision, a global designer and manufacturer of cable assembly and connector system solutions, and several other China-based manufacturing enterprises as new vaping industry players. 

  • VTA: Give Menthol Smokers Alternatives

    VTA: Give Menthol Smokers Alternatives

    Photo: Andrey Popov

    The U.S. Food and Drug Administration’s proposal to a menthol flavored cigarettes will improve public health only if there are viable menthol and flavored vapor products on the market, according to the Vapor Technology Association (VTA).

    In April, the FDA announced a plan to ban the sale mentholated cigarettes, which account for about one-third of the U.S. market. The public was invited to share its thoughts on the measures and the official comment period ended Aug. 2.

    In its official comment submission to the agency’s proposed product standards, the VTA urges the FDA to continue to build an “offramp” to menthol and flavored vaping products for smokers to access effective smoking alternatives.  

    “The menthol cigarette rule “has the potential to dramatically reducing cigarette smoking—the leading cause of death and disease of Americans—but only if the agency heeds the warning of scientists that menthol smokers must have access to less harmful vaping and other alternative nicotine products,” the VTA wrote in a statement.

    “These limitations threaten to take what should be a public health victory and turn it into a half measure that, in the absence of other decisive action from the FDA, will fall far short of the benefits the agency claims.”

    “FDA’s own proffered scientific experts acknowledge that at least 50 percent, and in some cases a larger percentage, of smokers will continue to smoke cigarettes or other combustible products after the menthol cigarette rule is put into effect unless provided access to effective alternatives.

    “To fulfill its own harm reduction mission, the agency must use its PMTA process to ensure a rational, regulated legal marketplace with suitable less harmful non-combustible alternatives,” the VTA wrote.

  • Cigarette Business Boosts ITC’s Quarter

    Cigarette Business Boosts ITC’s Quarter

    Photo: Wirestock

    ITC’s cigarette business delivered strong results in the second quarter of fiscal year 2022, with segment revenue and segment results up 29 percent and 30.1 percent year-on-year respectively

    In a media statement, the company said it continues to counter illicit trade and reinforce market standing by fortifying its product portfolio through innovation, premiumization across segments and enhancing product availability backed by superior on-ground execution.

    The business also continues to launch several differentiated variants to further strengthen and future-proof its product portfolio. Recent launches include Classic Connect, Gold Flake Indie Mint and Gold Flake Neo SMART Filter.

    The company said it was encouraged by the stable tobacco tax environment and actions by India’s law enforcement agencies to stamp out illicit trade.

    “As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables green shoots of volume recovery for the legal cigarette industry from illicit trade, thereby engendering domestic demand for Indian tobaccos, while also mitigating loss of tax revenue to the exchequer,” ITC wrote in a statement.

    The company said it continues to engage with policymakers for a framework of equitable, non-discriminatory, pragmatic, evidence-based regulations and taxation policies that balance the economic imperatives and tobacco-control objectives, while taking account of the unique tobacco consumption pattern in India, where factory-made cigarettes account for only a fraction of combustible tobacco volumes.

  • Former FDA Boss to lead CTP Review

    Former FDA Boss to lead CTP Review

    The Reagan-Udall Foundation has picked Clinton-era U.S. Food and Drug Administration commissioner Jane Henney to spearhead its 60-day review of operations in the agency’s food safety and tobacco divisions, according to Politico.

    Henney, the first woman to lead the agency, has not formally been announced yet.

    The FDA Commissioner Robert Califf made the move in an attempt to push past several controversies that have dominated his second stint running the agency, including his issuing of a marketing denial order (MDO) to e-cigarette maker Juul Labs and later having to rescind that order.

  • FDA ‘Working Diligently’ on Synthetic Nicotine Marketing Applications

    FDA ‘Working Diligently’ on Synthetic Nicotine Marketing Applications

    One month into his new job, Brian King is already praising his agency’s hard work. The director of the U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) released a statement that he wanted to make it “unequivocally clear” that the agency was “working diligently” to process synthetic nicotine premarket tobacco product applications (PMTAs).

    “A substantial number of applications were submitted by May 14 – nearly one million from more than 200 separate companies – with some several thousand pages long,” King stated. “Preparing these applications for review takes several steps and submissions varied widely in their organization, size, and completeness of data, which impacts the time it takes to process the information.”

    Amanda Wheeler, president of the American Vapor Manufacturers Association (AVM), Tweeted, “Read between the lines: Millions of applications submitted, ZERO approved, yet King assures us the system is working. We do know the only thing preventing vape products from saving lives is the FDA itself, rigging the system in favor of prohibition over harm reduction,” in response to King’s statement.
     
    Despite the challenges of reviewing PMTAs, King stated that the agency was “making significant progress” in processing and reviewing the applications. The FDA has issued refuse-to-accept (RTA) letters for more than 88,000 products for applications that “do not meet the criteria” for acceptance. Applications are required to provide important information needed for processing and reviewing.

    “Without the required information, applications cannot proceed past the acceptance phase of the review process,” King stated. “The RTA letters state that it is illegal to sell or distribute in the U.S. marketplace any new tobacco product that has not received premarket authorization.

    Of the nearly a million applications submitted by May 14, the FDA only accepted an estimated 350, with the vast majority being for e-cigarette or e-liquid products, according to the statement. Accepted applications are then evaluated in the filing stage before going under scientific review.

    “The substantive review phase includes evaluation of the scientific information and data in an application, which often results in follow-up questions and conversations with companies, including in situations where elements of an application raise questions needing clarification,” stated King. “It is only after the substantive phase that a company may be granted a marketing order. If no marketing order is granted, it remains illegal to market the product. To date, no non-tobacco nicotine product has received a marketing granted order.”

    All bark, no bite

    After July 13, 2022, a non-tobacco nicotine product can only be legally marketed in the United States if it has received a marketing order from the FDA. This means that it is illegal for a retailer or distributor to sell or distribute a synthetic nicotine products is in violation of the law and its manufacturer, retailer, or distributor may be subject to FDA enforcement. 

    King stated that the agency’s compliance and enforcement work is a multi-step process that cannot “happen overnight.” it takes time to ensure that any enforcement taken is supported by the available evidence with respect to the legal standards. Typically, the FDA will first issue warning letters to promote compliance and then follow up to ensure the violations addressed in the warning letter are corrected. If firms continue to violate the law, the FDA can pursue further actions, such as civil money penalties, seizures, and injunctions.

    Many retailers simply ignore the FDA warnings. One owner told Tobacco Reporter that they “know” the agency is overworked and understaffed and is unlikely to follow up or pursue further steps. The agency has also made some very public mistakes over the past month, including its reversal of Juul’s marketing denial order (MDO), that has damaged  the agency’s public perception.

    While there isn’t much data surrounding what tobacco products remain on the market that have received warning letters, however, numerous companies on the agency’s MDO list still market products in the U.S.

    It isn’t only for tobacco products that the agency doesn’t enforce its warnings. A considerable proportion of  drug supplement products remain available for purchase after issuance of FDA warning letters, according to a research letter published in the July 26 issue of the Journal of the American Medical Association. Researchers found that the FDA issued warning letters regarding 31 supplement products. Only one of these 31 products was recalled by the manufacturer.

    At a mean of six years following the issue of warning letters, nine of the products (29 percent) remained available for purchase online, according to the authors. Four of these nine products (44 percent) listed the presence of at least one prohibited ingredient on the label: One label declared the prohibited ingredient included in the FDA warning letter and three listed other FDA-prohibited ingredients. Five of the nine products were found to contain at least one FDA-prohibited ingredient after chemical analysis: Four products contained one prohibited ingredient and one product contained three. Two products contained the ingredient for which the FDA issued the warning letter.

    Despite its challenges, the FDA issued 17 new warning letters on Aug. 1 to manufacturers for marketing products without FDA approval. On July 28, the agency issued 102 warning letters to retailers for illegally selling non-tobacco nicotine products to underage purchasers.

    “Our goal is clear communication and transparency, and toward that end, we intend to include information about non-tobacco nicotine products in our regular metrics reporting in the future,” stated King. “To keep stakeholders and the general public informed, we also launched a non-tobacco nicotine product webpage that includes information about how synthetic nicotine is made and our regulation of non-tobacco nicotine products.”

  • Philip Morris To Produce at Imperial’s Kyiv Plant

    Philip Morris To Produce at Imperial’s Kyiv Plant

    Photo: Tobacco Reporter archive

    Philip Morris Ukraine will start producing some of its cigarettes at Imperial Tobacco’s factory in Kyiv this month, following a deal between the two companies, reports Interfax Ukraine.

    The arrangement allows Philip Morris to continue supplying customers even as production at its Kharkiv factory remains suspended in the wake of Russia’s military invasion. It also enables Imperial Tobacco to better utilize its production capacity, some of which has been idle due to the difficulty of exporting cigarettes.

    “Since the beginning of the war, we have been looking for alternative ways to ensure the supply of products,” said Philip Morris Ukraine Managing Director Maksym Barabash. “We are very pleased that we have found a mutually beneficial solution with Imperial Tobacco, which will produce products in accordance with PMI’s high-quality standards. For Philip Morris, this is a temporary measure. We hope that we will be able to resume production at our Kharkiv factory as soon as it becomes safe for workers.”

    “The Imperial Tobacco factory in Kyiv has a significant production potential and a strong professional team to ensure the production of additional volumes of products with high quality and in the right time,” said Halyna Vorobyova, head of Imperial Tobacco’s board in Ukraine. “Since the beginning of the war, our company cannot carry out export deliveries; therefore, the agreement with Philip Morris will allow us to load our capacity.”

    Philip Morris employed about 1,300 people prior to the war. Its Kharkiv factory exported cigarettes to more than 20 countries, including major markets such as Japan and Egypt.

  • Dryft Files Antitrust Suit Against Swedish Match

    Dryft Files Antitrust Suit Against Swedish Match

    Photo: Dryft Sciences

    Dryft Sciences has filed an antitrust lawsuit seeking $1.2 billion in damages from Swedish Match (SM).

    Brought on Aug. 2 in the California Central District Court, the suit accuses SM of filing baseless lawsuits against Dryft in order to increase legal costs, deter third-party investment and ultimately force Dryft out of business in order to establish a monopoly on nicotine pouch (NP) products.

    “SM brought these legal actions against Dryft because it knew it could not compete fairly with Dryft based on the qualities and price of its NP product, Zyn,” Dryft Sciences wrote in its complaint.

    According to Dryft, SM publicly expressed its intent to unlawfully eliminate the product Dryft from the market. In a convenience store industry report dated Sept. 16, 2020, SM’s director of category management stated that Dryft would be the first brand casualty, Dryft Sciences alleges in its complaint.

    Originally developed by Thomas Eriksson in Sweden, Dryft was launched in the United States by Kretek International in 2016. Kretek International later spun off Dryft Sciences and the Dryft product into a separate entity.

    The case is 2:22-cv-05355, Dryft Sciences LLC v. Swedish Match North America LLC.

  • Registration Open for Coresta Congress

    Registration Open for Coresta Congress

    Registration has opened for the 2022 Coresta Congress Online.

    Scheduled for Oct. 10–28, the Coresta Congress Online will comprise 26 sessions and more than 140 presentations.

    The daily sessions will focus on a specific topic area, and each prerecorded presentation will be followed by a live Q&A session with the presenters.

    Videos will be available for replay after the event, and the presentations will be published on the Coresta website.

    The registration deadline is Sept. 25, 2022.