Category: News This Week

Kaival Expands Distribution for Bidi Vapor

Photo: Kaival Brands Innovations Group
“We are encouraged by growing sales volumes in our second fiscal quarter generated by both established wholesalers and retailers selling the Bidi Stick in new stores, as well as new wholesale and retail accounts being added to our distribution network,” said Kaival Brands CEO Niraj Patel in a statement. “We anticipate the activation of approximately 3,900 new store locations over the next 45 days, including one new major retailer having already placed orders totaling more than $1.1 million.”
According to Kaival Brands, the expansion represents a positive development for the company since the U.S. Food and Drug Administration (FDA) issued its marketing denial order (MDO) to Bidi Vapor this past September, as it did for about 96 percent of all manufacturers of flavored electronic nicotine delivery systems.
In February 2022, the U.S. Court of Appeals for the Eleventh Circuit granted Bidi Vapor a judicial stay of the MDO, pending the resolution of Bidi Vapor’s ongoing merits-based litigation. In effect, the judicial stay means that the MDO, which covered the non-tobacco flavored Bidi Sticks, is not legally in force.
Accordingly, Kaival Brands anticipates marketing and selling all 11 flavored Bidi Sticks, subject to the FDA’s enforcement discretion, while Bidi Vapor continues with its merits case challenging the legality of the MDO.
The FDA has indicated that it is prioritizing enforcement against companies that have either not submitted premarket tobacco product applications (PMTAs), or whose PMTAs have been refused acceptance or filing by FDA, or whose PMTAs remain subject to MDOs.
Patel says he sees signs of growing confidence in the vaping industry as the MDOs for Bidi Sticks and products of several other companies have been placed on hold.
“This was a significant event not only for Kaival Brands and Bidi Vapor, but the entire industry,” said Patel of the court decision. “The judicial stay granted in February allowed us to resume sale of all 11 flavored products in the Bidi Stick lineup. We are eager to return our flavored products to the shelves of retailers that comply with the Prevent All Cigarette Trafficking Act so adult consumers can enjoy their preferred flavors once again. As a result of the judicial stay, we expect revenues to resume an upward trajectory as renewed distribution ramps up and sales of flavored Bidi Sticks increase.
“Additionally, we believe that the FDA’s new authority over products using synthetic nicotine will only bolster Kaival Brands’ market position, as more retailers understand the nearly insurmountable compliance hurdles facing those manufacturers of non-compliant, synthetic products. “
“Products in the vaping industry should be developed and placed in the market under a high degree of supervision, such as the FDA’s PMTA process or the FDA’s drug-approval process,” continued Patel. “We anticipate that as the FDA begins enforcement against illegally marketed and synthetic-nicotine vaping products, there may be an increased demand for compliant and legal vaping products, such as the Bidi Stick.”
April 19, 2022
Most Doctors Confused About Risk Continuum

Photo: pathdoc
More than 60 percent of all U.S. doctors incorrectly believe all tobacco products are equally harmful, making them less likely to recommend e-cigarettes for people trying to quit smoking, according to a study led by Rutgers University and published in JAMA Network Open.
Researchers asked more than 2,000 doctors in the U.S. in 2018 and 2019 about how they would advise patients on using e-cigarettes as a method of combustible smoking cessation. One in four physicians discouraged all use of e-cigarettes and were also more likely to advise against them if the hypothetical smoker they were counseling were a younger, light smoker compared to an older, heavy smoker.
“These findings show it is critical to address physicians’ misperceptions and educate them on e-cigarettes’ efficacy, particularly correcting their misperceptions that all tobacco products are equally harmful as opposed to the fact that combusted tobacco is by far the most dangerous,” said lead author Cristine Delnevo, the director of the Rutgers Center for Tobacco Studies.
The belief that all tobacco products are equally harmful was associated with lower rates of recommending e-cigarettes, the study found, demonstrating the need for physician education.
“As the evidence base grows for e-cigarette efficacy for smoking cessation, physicians’ understanding of e-cigarettes in the context of harm reduction must keep pace with the emerging scientific evidence through effective educational opportunities,” the study’s authors wrote. “Such opportunities should address e-cigarette safety and efficacy and correct misperceptions that all tobacco products are equally harmful.”

April 19, 2022
Groh to Lead U.S. Tobacconist Association

Photo: jirsak
Jennifer Groh is the new president of the Tobacconists’ Association of America (TAA), according to Halfwheel. Groh is associated with Metro Cigars in Germantown, Wisconsin, USA. Her tenure began at the end of March when she took over for Joe Arundel of Rain City Cigars in Seattle, Washington, USA.
The TAA consists of some of the top tobacconists in the U.S., including about 80 retailers and 40 manufacturers. The board of directors is largely made up of retail store owners who are members of TAA.
The TAA convenes annually to discuss issues facing the industry and retailers and to have its annual trade show.
April 19, 2022
Aquios Labs Presents Water-Based Vaping

Photo: luchschenF
Aquios Labs plans to introduce water-based vaping technology this month, according to a press release published by Vaping360.
Most traditional vaping devices and e-liquids contain no water, and in those that do, the water content is 3 percent or less. Until now, the low viscosity of water made it unsuitable for use in vaping devices at any meaningful level.
Dubbed AQ30, the first generation of Aquios Labs’ technology can support up to 30 percent water content using a combination of specially formulated e-liquid and hardware design. Aquios says it is already developing the capability to support even higher levels of water content.
According to Aquios Labs, water reduces dehydration and irritation, helps to deliver nicotine more efficiently and produces a more natural flavor. In addition, the operating temperature of water-based vaping is much lower than traditional vaping, which enhances the chemical stability of the vaping process.
“We founded Aquios Labs because there’s still a long way to go in terms of improving the vaping experience,” said Aquios Labs founder Jack Sanders. “We believe that water-based vaping is the new frontier of nicotine delivery, and AQ30 is already demonstrating this by drastically reducing the dehydrating effects of vapor while delivering clean flavors. We welcome new and existing vape brands to consider how this technology can be adopted as part of a growing product offering.”
Innokin, a leading vape brand and manufacturer, plans to integrate Aquios Labs technology into a wide range of its entry-level devices. Consumers can expect to see Innokin devices with AQ30 technology debut in the second quarter of 2022.
“Innokin has always believed that new technology has the power to eliminate the need for combustible tobacco,” said Innokin co-founder George Xia. “When we were introduced to Aquios, our product development team was immediately sold on the unique advantages of water-based vaping. We look forward to hearing feedback about our range of water-based devices when they launch this April.”
April 19, 2022
Juul Labs Settles Louisiana Vape Suit

Photo: steheap
Juul Labs has agreed to pay $10 million to settle a lawsuit filed by the Louisiana Attorney General’s Office over the e-cigarette manufacturer’s marketing practices. Juul has settled similar cases in Washington state, Arizona and North Carolina.
“This settlement is another step in our ongoing effort to reset our company, and we applaud the Attorney General’s plan to deploy resources to combat underage use,” reads a statement from Juul Labs. “We will continue working with federal and state stakeholders to secure a fully regulated, science-based marketplace for vapor products.”
In the Louisiana case, Attorney General Jeff Landry had accused Juul Labs of marketing its e-cigarettes to youth, according to a news report.
In a 76-page filing in November, Attorney General Jeff Landry claimed Juul used marketing tactics that included designing sleek, concealable devices that featured “fun flavors like mango and cool mint” and edgy ad campaigns directed toward youth.
Landry also accused Juul of “deceptive marketing practices” regarding the device’s concentrations of nicotine. Landry’s office had sought to prevent Juul from selling the product to minors and wanted to limit available flavors to tobacco and menthol. Prosecutors also sought financial penalties from Juul.
April 19, 2022
22nd Pilots its Low-Nicotine Brand in Illinois

Photo: 22nd Century Group
22nd Century Group’s VLN cigarettes are now available through a national pilot in select Chicagoland Circle K stores, the company announced in a press release.
Containing 95 percent less nicotine than conventional cigarettes, VLN cigarettes in December 2021 became the first combustible cigarettes to receive authorization from the U.S. Food and Drug Administration to be marketed as modified-risk tobacco products.
When choosing Chicagoland for the pilot, 22nd Century noted smokers are found within every segment of the population, many of whom are looking for alternatives. The Centers for Disease Control estimates 15.5 percent of Illinois adults aged 18 years or older smoke cigarettes, higher than the national average of 12.5 percent, according to 2018 state and 2020 national statistics.
A pack of VLN cigarettes will be similarly priced to full nicotine premium brands, approximately between $9 and $12, depending on tax. Illinois is the second most expensive cigarette retail market in the United States.
The three- to six-month pilot will be the first U.S. sales of VLN King and VLN Menthol King cigarettes. 22nd Century is also launching VLN cigarettes in South Korea, its first international market. Following the pilot, 22nd Century and Circle K intend to expand sales nationwide to more than 7,000 stores in 48 states.
On April 4, 2022, the Illinois Attorney General’s Tobacco Enforcement Bureau added 22nd Century Group’s VLN cigarettes to the Illinois Directory of Participating Manufacturers listing. The registration was the final step before 22nd Century could begin distribution.
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April 18, 2022
1Account to Accelerate Online Age Verification

Photo: Song_about_summer
1account, providers of age verification solutions for the vaping sector, has launched 1click sign-up for consumers buying vape products online, to enable faster transaction times and higher customer conversions than ever experienced before, according to a company press release.
With 1click sign-up, any consumer previously verified on a website where 1account’s tech is present, can click a button and have their data attributes pulled into a vape retailer’s website registration form. Because their details are pre-validated – and there is no need for interaction from the consumer – there is zero user input error.
Research by the Baymard Institute estimates that sales conversions can increase by more than 35 percent if a vendor is implementing the right checkout optimization strategies. Its research also shows that average cart abandonment is just under 70 percent, with more than a third (34 percent) abandoning a transaction due to having to register an account online.
1account currently provides age verification services to 40 percent of the top vape retailers in the UK, including  E-Cigarette Direct, Royal Flush Vape, Vapourcore, Vape Superstore, VPZ, E–Liquids UK, Not Blowing Smoke, Vape UK and E-liquids.com, according to the release.
“People have always had a level of expectation when it comes to customer service,” Ben Keirle, 1account’s CEO, said. “Traditionally, in physical real-world settings, the benchmark has been factors such as pricing, quality and how they are treated by the vendor.
“Today’s customers, however, demand much more from their online experiences and won’t think twice about ending an interaction mid-transaction if it’s not to their liking.”
There are around three million vapers in the UK, 60 percent of whom are buying their products online. Hyperfast age and identity verification is not only crucial to the industry’s reputation as being a responsible one, but to the online customer experience and the bottom line, according to the release.
When consumers are first verified by 1account they have to provide their name, date of birth, email and phone number which are then checked against an extensive range of national data sources. These consumers, when subsequently registering on vape retailer sites with 1account’s technology, then simply need to use the 1click sign-up function to pull in all their previously verified details.
Consumers using 1account’s digital ID app, which verifies their identity by checking typical identity documents, can also take advantage of 1click sign-up. As with those who have been age verified previously by 1account, the company’s system will simply call up their data which was used as part of creating a digital ID.
1account aims to have an estimated 3 million verified consumers on its system by the end of 2022.
April 18, 2022
Juul to Pay Washington State $22.5 Million for Youth Vaping

Photo: steheap
Juul Labs has agreed to pay Washington State $22.5 million to settle claims that it unlawfully targeted underage consumers with deceptive advertisements.
“Juul put profits before people,” Washington Attorney General Bob Ferguson said on April 13 in a statement. “The company fueled a staggering rise in vaping among teens.”
Among other complaints, Washington State argued that Juul failed to disclose clearly that its products contain nicotine. For more than 20 months, from August 2016 until April 2018, it “unlawfully sold hundreds of thousands of vaping products to Washington consumers,” the state’s attorneys wrote in their complaint.
As part of the settlement, Juul committed to reforms, including stopping all advertising that appeal to youth and ending most social media promotion in the settlement, according to Bloomberg.
“This settlement is another step in our ongoing effort to reset our company and resolve issues from the past,” the company said in a statement. “We support the Washington state attorney general’s plan to deploy resources to address underage use, such as future monitoring and enforcement.”
The deal is the latest in a series of settlements of youth vaping-related court cases brought by U.S. states.
In November 2021, Juul agreed to pay $14.5 million and change its business practices as part of an agreement with Arizona. In June 2021, it settled a similar case brought by North Carolina for $40 million.
Juul Labs continues to face similar suits from several states, including New York and California.
April 17, 2022
Synthetic Nicotine Applications Due Soon

Photo: Brian Jackson
Premarket tobacco product applications (PMTAs) for nontobacco nicotine products are due May 14, the U.S. Food and Drug Administration announced on its website.
Legislation enacted on March 15 empowers the FDA to regulate tobacco products containing nicotine from any source.
Effective April 14, not new nontobacco nicotine products may enter the market, as portions of the new law take effect.
The May 14 deadline applies to applicants using the FDA’s electronic submission process. Hardcopy applications must be received by FDA no later than 4 p.m. EDT on May 13.
April 17, 2022
Vietnam Sets Import Quotas for Cambodian Tobacco

Photo: Taco Tuinstra
Cambodia may export up to 3,000 tons of leaf tobacco to Vietnam under preferential import tax rates this year, reports The Khmer Times, citing Vietnam’s Ministry of Industry and Trade (MoiT).
In order to enjoy the preferential import tax rate, the products must be accompanied by a Certificate of Origin issued by the Cambodian Ministry of Trade or another authorized agency, and their customs clearance procedures must be conducted at designated border crossings.
For dried tobacco leaves, importers must show a license to import raw tobacco under tariff quotas issued by the MoIT.
In September last year, Vietnam announced that it would impose a zero percent tax rate on 31 commodities imported from Cambodia such as live poultry, poultry meat and by-products, lemons and rice.
The list also includes finished pork products and unprocessed tobacco leaves.
April 17, 2022