Category: News This Week

  • Next Generation Nixes Kaival Patent Deal

    Next Generation Nixes Kaival Patent Deal

    Photo: sorapop

    Next Generation Labs, which manufactures and markets bulk R-S, R- and S-isomer synthetic nicotine under its TFN brand, has terminated its Sept. 28, 2020, patent contribution agreement with Kaival Brands Innovation Group and Kaival Labs.

    The Patent Contribution Agreement related to the acquisition and commercial exploitation by Kaival of Next Generation Labs’ IP portfolio on combinational use of synthetic R- and S-isomer nicotine ratios in tobacco cessation products.

    In a press note, Next Generation Labs said Kaival Labs had published inaccurate and misleading statements relating to the use of patented synthetic nicotine for tobacco cessation products on its website. “Next Generation Labs wants to clarify that as a consequence of Kaival’s failure to perform its obligations under the Patent Contribution Agreement, all rights to the R-S synthetic nicotine cessation patent portfolio fully reverted to Next Generation Labs in May 2021,” Next Generation Labs wrote.

    Additionally, Kaival executed a confirmatory transfer agreement with Next Generation Labs relinquishing all rights to the Next Generation Labs patent portfolio for the commercialization of combinational TFN R-S nicotine relating to tobacco cessation products. Kaival is not an authorized agent of Next Generation Labs nor is it authorized to use Next Generation Labs’ name, intellectual property or its TFN trademark on its products, in its product marketing or in any financial prospectus to investors, according to Next Generation Labs.

  • PMI Urges U.K. to End Cigarette Sales

    PMI Urges U.K. to End Cigarette Sales

    Jacek Olczak (Photo: PMI)

    Philip Morris International’s CEO, Jacek Olczak, has called on the U.K. government to ban cigarettes within the next 10 years.

    Olczak said PMI could “see the world without cigarettes … and actually, the sooner it happens, the better for everyone,” according to the Guardian.

    “Give [people] a choice of smoke-free alternatives … with the right regulation and information, it can happen 10 years from now in some countries,” said Olczak. “You can solve the problem once and forever.”

    PMI recently stated that it wants half its turnover to come from nonsmoking products as it pushes its new mission to “unsmoke the world” by phasing out cigarettes. The company has come under scrutiny, however, by anti-smoking groups that feel tobacco companies are situating themselves as part of the solution while still promoting and selling cigarettes.

    We welcome PMI’s commitment to reduced-risk products. However, there are millions of adults who enjoy smoking cigarettes and don’t want to quit and that choice must be respected.

    Smokers’ rights group Forest rejected PMI’s suggestion.

    “We welcome PMI’s commitment to reduced-risk products. However, there are millions of adults who enjoy smoking cigarettes and don’t want to quit and that choice must be respected,” said Simon Clark, director of the smokers’ lobby group Forest.

    “If Philip Morris wants to leave smoking behind, good luck to them, but banning cigarettes won’t stop people smoking. It will simply drive the product into the hands of criminal gangs who will happily sell illicit and counterfeit cigarettes to anyone who wants them, including children.

    “We support the carrot not the stick approach to smoking cessation. Trying to force smokers to quit by banning cigarettes is illiberal and a fool’s errand that will end badly.”

  • Juul Class Action Moves Closer to Trial

    Juul Class Action Moves Closer to Trial

    Photo: steheap

    An expansive class action lawsuit against Juul Labs inched closer to trail when a federal judge advanced conspiracy and fraud claims against the company’s founders, board members and biggest investor, Altria Group, reports Court House News Service.

    On July 22, U.S. District Judge William Orrick III refused to dismiss the bulk of claims filed by 19 plaintiffs in 14 states. The suit accuses Juul and its leaders of intentionally using deceptive ads and marketing campaigns to get young people hooked on vaping to create a new generation of nicotine addicts.

    The plaintiffs say Juul failed to warn consumers that its e-cigarette products were highly addictive and that the company falsely claimed in ads and labels that its prefilled pods contained 5 percent nicotine, the same amount in a pack of cigarettes, when the pods contained much higher levels. They also say Juul fraudulently marketed its vaping products as a “safer alternative” to combustible cigarette smoking.

    The plaintiffs seek to hold Juul and Altria Group liable for fraud, negligence, negligent misrepresentation, strict product liability and medical monitoring.

    Judge Orrick rejected requests by Juul founders and top executives James Monsees and Adam Bowen to dismiss the claims against them, finding the plaintiffs “adequately alleged that both Monsees and Bowen engaged in acts that had the intent and impact of misleading the public and plaintiffs about the dangers of Juul.”

    Orrick also rejected Altria’s motion to dismiss, citing meetings that occurred between Altria and Juul in California regarding the development of “business agreements and arrangements through which Altria supported [Juul]’s manufacturing, regulatory, marketing and distribution efforts and how Altria’s efforts through [Juul] in California achieved their common goals.”

    Orrick found many of the arguments made by Altria and Juul’s founders and directors cannot be adequately evaluated until a later stage of litigation when more evidence is available for a jury or judge to scrutinize.

  • Heated Tobacco Exempted from Ban

    Heated Tobacco Exempted from Ban

    Photo: niyazz

    Mexico’s Supreme Court has ruled that heated-tobacco products (HTPs) will be exempted from a February 2020 presidential decree that bans importation of electronic nicotine-delivery systems (ENDS), reports Filter.

    Prior to the on July 16 ruling, manufacturers were able to import and sell HTPs legally using a loophole in the law called “habeas corpus trials.” But the loophole prevented the development of a fully regulated, legal market. The new presidential decree reverses that and allows for increased sales of these devices.

    Vapor products that use e-liquids continue to be banned by the Mexican government. According to Roberto Sussman, a researcher at the National University of Mexico and president of Pro-Vapeo Mexico, the vapor market in Mexico has been functioning since 2009 as part of the huge informal economy, which employs more than 50 percent of the workforce, and it is illegal but not criminal.

    It was an embarrassment for President Andres Manuel Lopez Obrador, who has expressed opposition to foreign NGOs and agents meddling with Mexican government regulations.

    More than 1.2 million Mexicans—1 percent of the adult population—use vapor products somewhat regularly, according to a survey by the Global State of Tobacco Harm Reduction.

    According to Filter, a fatal blow to the HTP ban came when it was leaked that the draft of the decree was written by a lawyer working for the Campaign for Tobacco-Free Kids.

    “It was an embarrassment for President Andres Manuel Lopez Obrador, who has expressed opposition to foreign NGOs and agents meddling with Mexican government regulations,” said Roberto Sussman.

    It’s not the first time Mexico’s Supreme Court intervened in the country’s drug policy. On June 28, it stepped in to legalize marijuana after lawmakers had failed to finalize the legislation the court demanded three years earlier.

  • Australian Patent for NGL’s Synthetic Nicotine

    Australian Patent for NGL’s Synthetic Nicotine

    Image: Zerbor

    Next Generation Labs has received an Australian patent for its innovative use of combinational ratios of synthetic R-isomer and S-isomer nicotine in tobacco cessation products.

    “This patent gives Next Generation Labs additional IP protection as the company pursues its international effort to encourage the adoption and use of novel synthetic combinational R-S isomer nicotine to assist consumers in their desire to break away from tobacco use and their long-term dependence to the reportedly highly addictive S-isomer nicotine,” the company wrote in a statement.

    Next Generation Labs started producing bulk synthetic nicotine in 2014 at a time when there was no commercial availability of isolated R-isomer and S-isomer nicotine. Given that both isomers can be produced in abundance by Next Generation Labs at relatively low cost, industry partners can now access separated isomers for commercialization into products that may aid cessation, enhance quit success rates and moderate overall tobacco use, according to the company.

    “Next Generation Labs believes future combinational R-[isomer] and S-isomer nicotine formulations may prove to be less addictive than natural or biosimilar standalone S-isomer nicotine and could potentially help achieve the broader public health goal of providing adult consumers with a satisfying, but nonaddictive form of nicotine to replace current products,” the company wrote. “These new variable isomeric ratios of synthetic nicotine products may ultimately assist adults in quitting or reducing their overall dependence on current tobacco, vape and nicotine products that deliver only the purported highly addictive ‘S’ form of nicotine.”

    The granting of the Australian TFN R-S nicotine cessation patent is in addition to existing Next Generation Labs patents that have been issued in China, South Korea, Japan, Canada, Europe and the United States.

  • Cigar/Pipe Rules and Fees Upheld in Court

    Cigar/Pipe Rules and Fees Upheld in Court

    Photo: shaiith

    The U.S. Food and Drug Administration properly implemented federal law when it extended certain cigarette rules to other tobacco products and when it assessed fees on cigars and pipe tobacco, the U.S. Court of Appeals for the District of Columbia Circuit ruled on June 20, according to Reuters.

    The court unanimously rejected a challenge by the Cigar Association of America, Cigar Rights of America and Premium Cigar Association to aspects of the FDA’s Deeming Rule subjecting cigars and pipe tobacco to the same regulatory framework as cigarettes.

    The FDA adopted the Deeming Rule in 2016, identifying a wide range of tobacco products, including cigars and pipe tobacco to be subject to its regulatory authority under the Family Smoking Prevention and Tobacco Control Act of 2009.

    The industry groups challenged the rule in the District of Columbia. Some aspects of that challenge have been successful, as when the D.C. Circuit last year overturned a warning label requirement for cigar and pipe tobacco products.

    In its recent ruling, however, the appeals court upheld the FDA’s authority to require cigar and pipe tobacco products to undergo premarket review or for manufacturers to provide “substantial equivalence reports” (SE) showing that a product is equivalent to one already on the market before 2007.

    The cigar groups had challenged that rule on the grounds that the FDA failed to provide product-specific instructions on how to prepare SE reports and did not consider the cost and benefits of premarket review specifically for each industry or product. They also challenged the user fees on the grounds that the agency did not impose similar fees on other newly deemed products such as e-cigarettes.

    Circuit Judge Judith Rogers wrote that it was unnecessary to address whether the law required the FDA to provide the instructions because the agency had said it would give companies 18 months to submit SE reports. She argued that even if the FDA were required to provide instructions, it did not have to do so as part of the rule but could do so later.

    Rogers also upheld the agency’s user fees on cigar and pipe tobacco manufacturers and importers, arguing that the Tobacco Control Act specifically gave the FDA authority to impose fees on cigarettes, cigars, snuff, chewing tobacco, pipe tobacco and roll-your-own tobacco.

    Anti-smoking activists described the court ruling as “a win for kids, their families and the public health.”

    “The D.C. Court of Appeals’ unanimous decision upholding the premarket review provisions of the FDA’s Deeming Rule for cigars will finally force cigar makers to show that their products are substantially equivalent to products that were already on the market before the passage of the landmark Tobacco Control Act,” said Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, in a statement.

    “Cigarettes have been subject to FDA regulation since the enactment of the Tobacco Control Act in 2009, but cigar makers were entirely unregulated for seven years until the Deeming Rule subjected them to minimal regulations.”

  • Kaival Restarts Pouch Production

    Kaival Restarts Pouch Production

    Kaival Brands Innovations Group is restarting production of its Bidi Pouch ahead of an anticipated September launch.

    The Bidi Pouch rollout had been delayed because of Covid-related manufacturing and supply chain constraints. Due to these complications and to prevent future bottlenecks, the company decided to move manufacturing in-house. One of the few pouch products on the market formulated without the Swedish Match formula, the Bidi Pouch provides a proprietary tobacco-free nicotine formulation packed in a convenient plastic can, according to Kaival Brands.

    “I am pleased to confirm that we expect to take delivery of the pouch manufacturing machines to our warehouse the end of August and anticipate beginning production in September with our first run expected to yield up to 500,000 cans,” said Niraj Patel, founder and CEO of Kaival Brands and Bidi Vapor, in a statement.

    “We are excited to launch distribution of the Bidi Pouch and have been working behind the scenes during Covid-based delays to secure initial distribution. To that extent, we are proud to announce that 8,000 points of distribution have been secured and are ready to receive our product,” said Eric Mosser, chief operating officer of Kaival Brands.

    The company believes that the nicotine pouch category represents a significant market opportunity. The category has witnessed significant growth recently, with New York-based Nielsen reporting an increase in unit sales of 59.9 percent in U.S. convenience stores over the 52-week period ended June 19, 2021.

    This growth is expected to continue as evidenced by publicly available material from MarketResearch.com in which it indicated that the global nicotine pouches market is expected to reach $32.8 billion by the end of 2026, with an expected compound annual growth rate of 54.9 percent through 2026.

  • BAT Highlights Vuse’s Carbon Neutral Status

    BAT Highlights Vuse’s Carbon Neutral Status

    Photo: BAT

    BAT’s Vuse e-cigarette celebrated its position as the first global carbon neutral vape brand with a carbon neutral voyage down the Thames in London, home of BAT’s global headquarters.

    The event was organized to underscore Vuse’s commitment to carbon neutrality and its various supporting initiatives. For instance, in utilizing substantial sea freight as part of its global supply chain, BAT aims to move the majority of Vuse’s global shipments by sea freight by the end of next year.

    “I am proud of the way that Vuse is playing its part in delivering ‘A Better Tomorrow’ by reducing its impact on the environment,” said Kingsley Wheaton, chief marketing officer at BAT, in a statement.

    “Vuse is a leading global brand with ever-increasing scale, which allows us to drive global supply chain efficiencies and effectiveness. I am delighted that, in Vuse, we are demonstrating the kind of purposeful behavior expected from leading brands of the world. This commitment will play a part in our vision of ‘A Better Tomorrow’ becoming a reality.”

    Research conducted on behalf of BAT’s R.J. Reynolds Vapor Co. subsidiary found that nearly half (46 percent) of consumers said they would prefer using a vapor product from a company that was successful in becoming carbon neutral. A brand’s environmental priorities and impact are increasingly important to consumers in considering their purchasing choices, with nearly a third of consumers broadly viewing a brand more favorably based on their environmental initiatives, according to Reynolds.

    Vuse’s carbon neutrality status and ambition to increase sea freight is part of BAT’s bigger ambition to become an environmentally sustainable vape brand with initiatives including:

    • An ambition to transport the majority of international shipments by sea by the end of 2022 and 100 percent of its consumable pods by the end of 2023
    • A global device and pod collection scheme; through the “Drop the Pod” campaign, approximately 200,000 pods were collected since the start of the pilot in 2020
    • Cutting single use plastics from packaging; the “Cut the Wrap” campaign has saved 100 tons of plastic, or the equivalent of 4 million plastic bottles, in 2020

    BAT’s sustainability efforts and commitment have received notable independent recognition. These include appearing in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), a MSCI rating of BBB and CDP A-List status for climate change.

  • JOB Collaboration With Rap Mogul Birdman

    JOB Collaboration With Rap Mogul Birdman

    Photo: Republic

    Republic’s JOB rolling papers brand is launching a line of products in collaboration with rap mogul Birdman’s $TUNNA brand.

    “When we learned that Birdman was a fan of our historic JOB rolling papers brand, we knew that JOB’s creativity-focused premium style would match perfectly with his luxury lifestyle and personal brand,” said Paul Marobella, president and chief marketing officer of Republic, in a press note. “JOB has long been a cultural icon and a favorite in rolling circles, and we look forward to that continuing through our partnership with the music industry legend Birdman and his Cash Money Records.”

    JOB x $TUNNA Champagne rolling papers feature organic hemp paper sourced from Champagne, France, and will be sold in 1¼ and 1½ booklets. Following the launch, JOB x $TUNNA plans to expand its line to include cones, accessories and apparel.

    Republic will debut JOB x $TUNNA Organic Hemp Rolling Papers at the CHAMPS Las Vegas trade show, July 27–30, 2021. JOB x $TUNNA products are available for presale at the Republic Brands booth (#5205) prior to the product’s official launch date in September 2021.

    In addition, Republic Brands’ top customers will get access to an exclusive concert sponsored by JOB x $TUNNA featuring Gucci Mane on July 29.

    Bryan Williams, known by his stage name Birdman, is an entrepreneur, rapper and record producer who is the public face of one of the most successful record labels in hip-hop history, Cash Money Records. Birdman has released four solo albums in his career and has mentored many famous artists, most notably his protege Lil Wayne.

    JOB rolling papers was founded in 1838 by Jean Bardou of Perpignan, France, where Bardou introduced the first rolling paper booklet to the world.

    Since then, JOB has continued producing its high-quality rolling papers with the core principles of sustainability, craft and stewardship.

    Bryan Williams, known by his stage name Birdman, is an entrepreneur, rapper and record producer who is the public face of one of the most successful record labels in hip-hop history, Cash Money Records. Birdman has released four solo albums in his career, and has mentored many famous artists, most notably his protege Lil Wayne. (Photo: Business Wire)
  • New Taipei Prepares To Ban Underage Vaping

    New Taipei Prepares To Ban Underage Vaping

    Photo: BUSARA

    Starting in August, people under the age of 18 will be banned from buying or smoking electronic cigarettes in New Taipei, reports Focus Taiwan, citing local government sources.

    Passed by the New Taipei City Council on April 29, the new ordinance is expected to take effect Aug. 6.

    After that date, people under the age of 18 caught vaping or carrying e-cigarettes will be required to enroll in a program to help them quit, the city’s health department said in a statement.

    Violators who skip the programs without a valid reason will be fined between TWD$2,000 ($71) and TWD$10,000, the department warned.

    Individuals or businesses caught selling vapor devices to people under the age of 18 will risk a maximum fine of TWD$100,000.

    Taiwan’s current law defines minors as people under 20, but an amendment that was passed last December will lower the age to 18 with effect from 2023.

    Meanwhile, the New Taipei health department said city regulations prohibit the manufacture, importation, sale, display and advertisement of e-cigarette products without the relevant permits.

    The maximum fine for violation of that regulation is TWD$100,000 and the businesses involved may be closed or suspended, the department said.