Category: News This Week

  • Revenues and Income Down at VPR

    Revenues and Income Down at VPR

    VPR Brands reported revenues of $1.77 million for the second quarter of 2024, down from $1.9 million in the comparable 2023 quarter. Gross profit was $451,469, compared with $1.1 million in the second quarter of 2023.

    “While the second quarter presented some challenges, we are encouraged by the solid growth in our product sales and the positive trajectory of our business,” said VPR Brands CEO Kevin Frija.

    “Our ability to generate consistent revenue, coupled with our strategic investments, positions us well for future success. We are committed to driving innovation and expanding our market presence, and we believe that our focus on quality and customer satisfaction will continue to deliver value to our shareholders.”

    Looking ahead, VPR Brands says it remains focused on expanding its product lines and enhancing its market footprint. “With a solid balance sheet and a dedicated team, the company is well-positioned to capitalize on emerging opportunities in the electronic cigarette and vaporizer markets,” the company wrote in a press note.

    Photo: crizzystudio
  • Japan Tobacco Acquires Vector Group

    Japan Tobacco Acquires Vector Group

    The JT Group will acquire Vector Group (VGR), the fourth largest tobacco company in the United States.

    Based on the purchase agreement, the JT Group will conduct a tender offer for all outstanding shares of VGR through Vapor Merger Sub, an entity established specifically for this acquisition.

    The JT Group intends to acquire 100 percent of VGR’s outstanding fully diluted share capital for a per share price of $15, representing a total equity value transaction estimated at around $2.4 billion. The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following closing, VGR will be a wholly owned consolidated subsidiary of JT and be delisted from the New York Stock Exchange.

    “Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organization. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands’ legacy of value-focused, quality products and looks forward to continuing to meet customers’ evolving needs.”

    “We are excited by this acquisition which, in line with our tobacco business strategy, will contribute to the acceleration of the ROI [return on investment] in our combustible business and expand JT Group’s global footprint,” said Masamichi Terabatake, JT Group CEO and president of the company’s tobacco business, in a statement.

    “By adding this sizeable and historically profitable business to our company, we are confident the transaction will contribute to sustainable growth and increase JT Group’s corporate value.”

    “This transaction will significantly increase our U.S. presence, boosting our market share from 2.3 percent to approximately 8 percent and giving us full ownership of two of the top-10 U.S. cigarette brands,” said Eddy Pirard, president and CEO of JT International.

    “The transaction will enable us to also strengthen our distribution network and create mid- to long-term strategic opportunities to boost our competitiveness in this major tobacco market.”

  • Burbidge Joins Global Action to End Smoking

    Burbidge Joins Global Action to End Smoking

    Global Action to End Smoking appointed Cole Burbidge as a new director of programs. With a distinguished career in advancing public health in underserved communities, Burbidge brings a wealth of experience that will support the organization’s grantmaking work, according to the organization.

    Burbidge is a physician by training and a strong advocate for patient-centered care, understanding firsthand the gaps between idealized healthcare models and the reality faced by patients. His career has been dedicated to improving health outcomes for recreational substance users and high-risk patients.

    At Global Action, Burbidge’s main roles will be developing requests for grant proposals and evaluating prospective research projects. He will also be supporting the communications team as it disseminates relevant information to people who smoke. He will report to Erik Augustson, vice president of programs.

    “I’m excited to continue my work in improving public health through my new role at Global Action,” said Burbidge in a statement. “I am deeply passionate about meeting individuals where they are to make sure that a healthier lifestyle is effective and accessible.”

    Burbidge’s experience spans consulting roles with healthcare organizations, pharmaceutical companies and risk-reduction advocacy groups as well as leadership positions in industry, where he oversaw teams in scientific and regulatory affairs.

    “Dr. Cole Burbidge is a strong addition to our team at Global Action,” said Augustson. “His expertise and passion for patient-centered care will be invaluable as we continue our mission to end smoking. Dr. Burbidge’s focus on innovative, data-driven solutions aligns perfectly with our goals, and we look forward to the impact he will have on our programs.”

  • Smoore Reports Half-Year Results

    Smoore Reports Half-Year Results

    Photo:TacoTuinstra

    Smoore International Holdings reported revenue of RMB5.04 billion ($705.4 million) for the six months that ended June 30, down 1.7 percent from the comparable 2023 period. Gross profit rose 3.2 percent to RMB1.91 billion while pretax profit was up by 1.9 percent to RMB811.56 million.

    The group’s branded business grew by 71.9 percent to RMB1.12 billion in the first half of 2024, boosted by the company’s digital marketing operations, which enabled the company to respond rapidly to consumer preferences. The group’s Vaporesso brand continued to increase its market share in the open system product segment and has become the leading brand in this category.

    Smoore’s corporate client sales, meanwhile, declined by 12.3 percent to RMB3.92 billion in the first six months of 2024, reflecting different sales performances in different markets around the world.

    In the U.S., Smoore faced competition from noncompliant vaping products. However, the company said it was encouraged by clarifications of the regulatory framework and the strengthening of enforcement in that market, pointing to creation of a federal multi-agency task force to combat the illicit market, among other developments.

    Increasing regulation of the vaping market in Europe, meanwhile, has impacted demand for traditional disposable products, causing the group’s revenue from single-use vapes to decline by approximately 18.9 percent year-on-year to approximately RMB1.22 billion.

    Smoore said it has successfully launched a number of new closed system products in the international market in the first half of the year, and it is confident that this will translate into stronger orders in the second half of the year.

    In China, where the group’s corporate client-oriented business centers on closed system electronic vaping products, Smoore reported sales revenue of RMB87.78 million, representing an increase of approximately 41.4 percent as compared to the same period last year.

  • Pyxus Appoints Chief Legal Officer

    Pyxus Appoints Chief Legal Officer

    Photo: RerF

    Pyxus International has appointed David Singer as senior vice president, chief legal officer and secretary. Singer will report to Pyxus President and CEO Pieter Sikkel and join the company’s executive management team.

    Singer, who served on Pyxus’ legal team from August 2018 to May 2022, rejoins the company with nearly 20 years of experience, most recently serving as chief administrative officer and general counsel for Kymera International, a global specialty materials company. His previous roles include senior in-house counsel positions and experience as a litigation, corporate and regulatory attorney.

    “We are pleased to welcome David back to Pyxus in this new capacity,” said Sikkel in a statement. “Given our diverse global footprint and the regulatory complexities of our operations, David’s legal expertise, strategic insight and deep understanding of our business are invaluable. His leadership will help us uphold a culture of responsibility and compliance as we pursue our strategic goals and drive stakeholder value.”

    Singer succeeds Will O’Quinn, who has been senior vice president, chief legal officer and secretary since 2011. O’Quinn will remain a key member of the company’s leadership team, assuming the position of senior vice president of special projects, and will continue reporting to Sikkel.

    “We thank Will for his contributions to grow the company’s legal function to what it is today and appreciate his enthusiasm to leverage his legal expertise and company-specific business acumen to deliver success in his new role while positioning Pyxus for the future,” stated Sikkel.

  • Seed Sales Surge

    Seed Sales Surge

    Photo: Taco Tuinstra

    Tobacco growers in Zimbabwe have bought more than 1,000 kg of seed to date, reflecting a significant increase over the 831 kg sold at the same time last year, reports the Sunday Mail.

    The seed purchased is enough to cover 201,036 hectares, according to the Kutsaga Tobacco Research Board.

    Tafadzwa Chimuti, spokesperson for the Association of Tobacco Growers, said the upcoming farming season could set new records in terms of acreage, quality and output.

    “This could be a record-breaking year, driven by last season’s favorable prices and the lack of alternative crops offering better returns,” he was quoted as saying.

    The most recent harvest was negatively impacted by drought related to the El Nino weather phenomenon.

    The upcoming growing season, by contrast, will be influenced by the La Nina weather phenomenon, which is expected to bring increased rainfall.

  • RLX Revenue Jumps 66 Percent

    RLX Revenue Jumps 66 Percent

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB627.2 million ($86.3 million) in the second quarter of 2024, up 66 percent from the comparable 2023 quarter. U.S. GAAP net income was RMB134.9 million, down from RMB204.7 million in the same period of 2023. Non-GAAP soared to RMB213.1 million from RMB86.2 million. Gross profit was RMB157.9 million compared with RMB98.5 million in the comparable 2023 period.

    “We delivered a strong second-quarter performance as revenue continued to increase sequentially, driven by our international business expansion,” said RLX chairperson and CEO Ying (Kate) Wang in a statement.  

    “Our deep exploration of overseas markets and regulations has provided us with valuable insights into the global e-vapor landscape, enabling us to create effective, targeted regional strategies. This year, global regulations are rapidly evolving, with more regulators recognizing e-vapor products as harm reduction tools for adult smokers. Leveraging our broad expertise in regulatory compliance, we are well prepared to navigate these changes and ensure a seamless transition for our users and partners.”

    Chief Financial Officer Chao Lu said the considerable year-on-year increase in net revenues reflected the company’s ability to capture growth opportunities in international markets. “While our gross margin declined slightly due to an unfavorable shift in our revenue mix, disciplined cost management bolstered our non-GAAP operating profit margins,” he said.

    “Looking ahead, we are confident of driving continued improvement in both our top and bottom lines, fueled by ongoing revenue growth from international markets and our relentless focus on operational efficiency. As always, our priority is to deliver sustainable and profitable returns to our shareholders.”

  • Thailand: Home Vaping is Domestic Violence

    Thailand: Home Vaping is Domestic Violence

    Image: Zerophoto

    Exposure to secondhand vapor from vaping at home could be considered a violation of Thailand’s child protection laws, according to child health and rights experts who are calling for more awareness of the dangers of vaping around children, reports The Pattaya Mail.

    Under national laws, vaping around children could be considered “domestic violence,” according to Thai authorities. They are calling for stricter enforcement.

    The Royal College of Pediatricians of Thailand wants stronger government measures to restrict the import and sale of e-cigarettes and increase educational campaigns about the risks of nicotine.

  • U.S. Court Reverses ‘Elf’ Trademark Suit

    U.S. Court Reverses ‘Elf’ Trademark Suit

    Image: Olivier Le Moal

    A ban on a Chinese company selling “Elfbar” vapes can’t stand because a district court failed to analyze whether the rightsholder’s use of “Elf” on an illegal product negated its trademark rights, the Federal Circuit court stated.

    “Elfbar” seller Shenzhen Weiboli Technology Co. Ltd. argued the “unlawful use doctrine” precluded a preliminary injunction as plaintiff VPR Brands LP failed to clear its “new tobacco product” with the government as required under federal law, according to Bloomberg.

    The U.S. Court of Appeals stated in its opinion that the district court wrongly dismissed the defense without considering the propriety of the doctrine, a proper standard or Weiboli’s evidence.

    The Federal Circuit ruled that the district judge who ordered the injunction “misread” precedent and relied on a “deficient” legal analysis.

    A U.S. federal judge on Feb. 23 ordered Shenzhen Weiboli Technology to stop marketing its Elfbar e-cigarettes in the U.S., finding that VPR Brands, which makes and sells Elf brand vapes, is likely to succeed on its claims that the Elfbar vapes infringe its trademark.

    According to U.S. District Judge Aileen M. Cannon, VPR has shown there is a likelihood of confusion and the company stands to suffer harm if its Chinese competitor is allowed to keep selling the Elfbar vapes.

    In November, VPR asked for an injunction blocking Shenzhen Weiboli from continuing to use the Elfbar mark, arguing the alleged infringement is costing VPR about $100 million because of the effect on future sales.

    VPR claims Shenzhen Weiboli is not only infringing VPR’s Elf trademark but also its patent for its e-cigarette device.

  • Zig-Zag Launches New Hemp Wrap Flavors

    Zig-Zag Launches New Hemp Wrap Flavors

    Credit: Zig-Zag

    Zig-Zag rolling papers announced the expansion of its hemp wrap line, featuring 100 percent tobacco-free hemp wraps in four new flavors: Sour Squeeze, Georgia Peach, Summer Slice, and Mellow Haze.

    The wraps are designed to enhance the smoking experience with their smooth, slow-burning properties and exceptional draw, according to a release.

    Each pack of Zig-Zag Hemp Wraps includes two premium wraps and a convenient packing straw, ensuring an “effortless and enjoyable rolling experience.

    The new hemp wraps are exclusively available in 25-pack cartons online for $24.75 and in 2 packs at retail across the country.

    “Our new hemp wraps are crafted to deliver a superior smoking experience without the use of tobacco,” said Stacey Neuhaus at Zig-Zag. “We are excited to introduce these unique flavors to our lineup, offering our customers more options to enjoy their smoking rituals.”