Vilosophy has launched V&YOU, a portfolio of premium products with “active” ingredients, in the United Kingdom.
V&YOU products are available in four “vibes”—calm, chill, focus and boost. They include CBD oils and pouches, as well as nicotine pouches. According to Vilosophy, the V&YOU CBD and nicotine pouches provide a new, discreet and convenient way to consume either ingredient.
V&YOU products adhere to the strictest quality standards and are sold an accessible price, according to the manufacturer.
“We are excited that our first brand V&YOU will be one of the only producers of nicotine pouches in the U.K.,” says Vilosophy CEO Wouda Kuipers, who founded the company with Ged Shudall and Markus Bonke, two seasoned executives from the fast-moving consumer goods space.
“Pouches are incredibly popular across Europe and we think people in the U.K. will find them a convenient way to take nicotine; they also provide longer lasting flavors,” adds Wouda Kuipers.
“Vilosophy has been founded on the belief that people should be free to choose how they live their life and our aim is to develop a portfolio of lifestyle brands that bring premium active ingredients to market, in a way that is best for people,” he says.
Hoffmann Neopac will host a webinar exploring best packaging practices for the burgeoning North American cannabis market. Scheduled for Sept. 29 at 2 pm EST, the hour-long webinar will feature executive-level Hoffmann Neopac presenters well-versed in the cannabis packaging landscape.
The presentation will feature customer case studies, in which cannabis manufacturers who have partnered with Hoffmann Neopac share insight on differentiating brands in an increasingly competitive marketplace via child-resistant, sustainable packaging solutions.
Those attending will receive an in-depth overview on the state-by-state U.S. medicinal and recreational regulations, and on business trends for various cannabis formats—including edibles, flowers, pre-rolls, tobacco and creams—on which marijuana is leaving its mark. Presenters will also provide an update on the sector’s strength as it emerges from the Covid-19 pandemic.
The webinar will also highlight Hoffmann Neopac’s dual packaging specialties—tins and tubes—and how they can be employed to meet child-resistance requirements and sustainability demands while providing exemplary product protection and on-shelf aesthetics.
The vaping of marijuana and nicotine among those aged 19 to 22 more than doubled between 2017 and 2019, according to the University of Michigan’s annual U.S. national Monitoring the Future (MTF) panel study.
In addition, use of marijuana in any form in 2019 among young adults ages 19 to 22 was at or near the highest levels seen over the past four decades.
Between 2017 and 2019, the percentage of adults aged 19 to 22 who vaped marijuana at least once in the past 30 days increased from 5 percent to 14 percent among full-time college students and from 8 percent to 17 percent among those not in college.
Similarly, between 2017 and 2019, the 30-day prevalence of vaping nicotine increased from 6 percent to 22 percent among college students and from 8 percent to 18 percent among adults aged 19 to 22 not in college.
“This doubling to tripling of prevalence of vaping marijuana and vaping nicotine over just two years are among the largest increases in MTF history for any substance since the study began over 40 years ago,” said John Schulenberg, principal investigator of the MTF study. “This is a worrisome trend given the health risks associated with vaping, including an increased risk of Covid-19 and the addictive properties of nicotine.”
Boldt Runners Corp., the licensee of Cannadips CBD, a smokeless dip pouch with CBD, has appointed former tobacco executive Maura Scott as chief sales officer and chief compliance officer.
With more than two decades of experience as a business leader, in-house and outside corporate counsel, Scott brings expertise in sales and marketing strategy development and execution, along with a deep understanding of the legal and regulatory landscape.
Most recently, Scott served as vice president northeast region sales at Altria Group, where she led a team of 400 sales professionals across 13 U.S. states. In 2018, she was recognized by her peers in the convenience industry with the Top Women in Convenience “Woman of the Year” Award. Previously, Scott served as assistant general counsel at Altria where she led the sales practice group.
“I am excited to be part of the Boldt Runners team,” said Scott in a statement. “Cannadips CBD is a brand that has great potential in the marketplace for tobacco alternatives. Since its launch in 2018, it has quickly gained transaction with adult consumers and is poised to expand rapidly as the company ramps up production and distribution to more markets.”
Pax Labs has launched its Pax 3 cannabis vaporizer for dry herb and concentrates in a sleek and sophisticated new color palette that includes Onyx, Sand, Sage and Burgundy in a premium matte finish.
The new colors are available in both a basic kit ($200) and a complete kit with concentrate insert ($250).
“Our new color palette is a beautiful range of modern, refined colors, hand selected to reflect a sophisticated yet still discreet design,” said Jesse Silver, Pax Labs’ senior vice president of product in a statement.
The product also offers enhanced battery life, temperature consistency and consumer control through the Pax app.
Pax 3 uses a UL-certified battery and food-grade materials for mouth-touching parts. The product has undergone extensive testing in the areas of temperature stress, thermal cycling, durability, battery cycling, environmental exposure, continuous operation and electromagnetic/radio frequency compatibility.
A unique locking technology stops Pax 3 from producing vapor to prevent unwanted use.
The U.S. Food and Drug Administration has issued warning letters to two companies for illegally selling unapproved products containing cannabidiol (CBD) in ways that violate the Federal Food, Drug and Cosmetic Act. This action is part of the FDA’s efforts to pursue companies that illegally market CBD products with claims that they can treat medical conditions, including opioid addiction or as an alternative to opioids.
“The opioid crisis continues to be a serious problem in the United States, and we will continue to crack down on companies that attempt to benefit from selling products with unfounded treatment claims,” said FDA Principal Deputy Commissioner Amy Abernethy.
“CBD has not been shown to treat opioid addiction. Opioid addiction is a real problem in our country, and those who are addicted need to seek out proper treatment from a health care provider. There are many unanswered questions about the science, safety, effectiveness and quality of unapproved products containing CBD, and we will continue to work to protect the health and safety of American consumers from products that are being marketed in violation of the law.”
The two warning letters were issued to Biota Biosciences of Washington state and Homero Corp DBA Natures CBD Oil Distribution of New Hampshire.
Pyxus International is evaluating strategic alternatives to maximize value. As part of the process, the board of directors established a special committee of independent directors, which will be chaired by Martin R. Wade III.
The special committee will consider and assess a range of strategic, operational and financial alternatives, which may include a sale, recapitalization or other transaction, and will make related recommendations thereon to the full board.
Pyxus has retained Lazard and RPA Advisors as its financial advisors to assist with the strategic review process and Simpson Thacher & Bartlett LLP as legal counsel.
Pyxus previously initiated an evaluation of plans for a potential partial monetization of interests in its nontobacco subsidiaries and launched a global operations efficiency program with the aim to position the company for long-term success.
The company has not set a timetable for completion of the review and does not intend to disclose developments related to the process unless and until the company executes a definitive agreement with respect thereto or the board otherwise determines that further disclosure is appropriate or required.
Malawi has passed a bill decriminalizing cannabis for medicinal and industrial purposes.
The bill comes five years after a motion to legalize industrial hemp.
Zimbabwe, Zambia and Lesotho previously legalized medicinal cannabis; medicinal and recreational use was decriminalized in South Africa in 2018.
“Today is a very glorious day for me personally and, I think, for the entire nation,” said Boniface Kadzamira, the former Member of Parliament who tabled the topic in 2015, following the successful passage of the bill.
The economic potential of the industry was the main driver behind the passage of the bill. The national poverty rate in Malawi was 50 percent in 2016, and Malawi remains one of the poorest countries in the world, according to the World Bank.
“It is my strong view that cannabis will in the long run replace tobacco to become our major cash crop—that will contribute hugely to the GDP,” said Kadzamira. Nearly 80 percent of Malawi’s population is employed in agriculture, and authorities want the newly legalized cannabis sector to be processed in-house unlike tobacco.
The lessons from one and a half years of legal cannabis in Canada
By Stefanie Rossel
Seventeen months after legalization of recreational cannabis in Canada, ecstasy has given way to disillusionment. When pot officially became legally available on Oct. 17, 2018, it created a booming new industry. As of July 2019, it had contributed $8.26 billion to Canada’s economy and created around 9,200 new jobs, according to Statistics Canada. Investors were in a gold rush mood. In autumn 2019, however, marijuana producers were sitting on 400 tons of unsold weed, enough to cover two and a half years of demand, the Financial Times reported. Share prices were tumbling, as were prices for legal cannabis, and producers announced production and job cuts.
What had gone wrong? Canada’s government had the best intentions when it passed the Cannabis Act (Bill C-45), thereby becoming the second country, after Uruguay, to legalize recreational cannabis for adults nationwide. The move was meant to take the product out of the black market, to protect public health and to keep cannabis out of the hands of youth. The law controls and regulates marijuana production, distribution and sale. By establishing standards for its legal manufacture, users would have access to a safe product without unknown additives. And, of course, recreational marijuana offered an additional opportunity for the government to collect tax revenue.
“Ending a criminal law abstinence-only approach to drugs is a good idea,” says David Sweanor, an industry expert and chair of the Advisory Board for the Center for Health Law, Policy and Ethics at the University of Ottawa. “The War on Drugs has been monumentally unsuccessful and hugely costly in terms of enforcement and societal harm. But the goal of taking a public health approach on cannabis in Canada was sidelined by politics. Instead of ending a criminal law approach, there were simply a few rather confusing—especially to those most likely to use the product—exemptions made to a prohibitionist approach.”
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Free to get high
Bill C-45 stipulates that people age 18 or older may possess up to 30 grams of dried cannabis or an equivalent nondried form. The Canadian provinces and territories regulate and tax cannabis individually, as they have been doing with alcohol and tobacco, and may further restrict possession, sale and use. Except in Manitoba and Quebec, each Canadian household is allowed to cultivate up to four marijuana plants from seed or seedlings licensed by the government. Edibles and vapor products containing pot, termed “Cannabis 2.0,” were introduced in a second phase of legalization in late December 2019. Procedures for retail sales vary between provinces and depend on whether outlets are privately owned or run by the provincial government.
David Sweanor
Anyone who wants to become involved in the marijuana business—be it in cultivation, processing or selling, analytical testing, or research—must obtain a license from Health Canada. The arduous multi-month procedure turned out to be one of the major reasons why legal cannabis found its way to consumers only slowly during the first year after the act was implemented. Throughout Canada, legal sales take place at retail outlets or through the mail. Health Canada, however, lagged behind in issuing authorizations, with a reported backlog of more than 800 cultivation, processing and sales license applications at the beginning of 2019. As a result, physical dispensaries for legal cannabis have only been rolled out slowly in several Canadian provinces, thus turning the legal distribution channel into a bottleneck that is likely to persist for some time. In Ontario, the country’s most populous province with more than 14 million people, 24 licensed marijuana stores had opened one year after legalization, which corresponds to one shop for every 604,200 residents. “The provinces, overall, seemed overly interested in revenue opportunities, poorly equipped to offer consumers a better option than the illicit market, and bad at business,” says Sweanor.
Competing with the black market
Several other factors contributed to the sluggish transition from illegal to legal sales. Canada has introduced a special excise tax of 10 percent on cannabis, which makes it difficult for legal producers to compete with black market dealers on price. Third quarter 2019 data published by Statistics Canada found that the average per gram price for legal marijuana stood at cad10.23 ($7.73) compared to cad5.59 for illicit pot. Legalization proponents hope that the price differential will diminish as costs for legal cannabis production decline once economies of scale kick in. “But the illicit market has been very entrepreneurial,” Sweanor explains, “and the legal market has to date not been a very effective competitor in much of the country.”
Although cannabis regulations don’t include a firm limit on how much tetrahydrocannabinol (THC), the main psychoactive component in cannabis, products may contain, the bulk of marijuana products available on the market are believed to have a lower THC content than what consumers could buy on the black market. Furthermore, with hundreds of illegal marijuana dispensaries, cafes and lounges across the country, Canada already had a functioning illicit cannabis supply infrastructure for years that did not disappear with legalization. At the same time, strict marketing controls on legal dope limited the ability of legitimate businesses to lure cannabis consumers away from their established and trusted illegal sources.
“There has not been a sufficiently viable offer in terms of relative safety, price, availability, acceptability, etc., to cause a market transition similar to what was seen in the move to sanitary food, science-based pharma and other historical transitions to regulated industries,” says Sweanor.
While hard to monitor, the value of the cannabis black market was believed to be $3.2 billion in 2019 compared to a $1.9 billion legal cannabis market, according to the Financial Times. Analysts estimated the size of the legal market to triple within the next five years, however, thus taking away at least $1 billion from illegal drug dealers.
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Issues to solve
When evaluating Canada’s shortcomings in its legalization of marijuana, it’s important to remember that the country entered largely unchartered territory. Nevertheless, the government could have considered the experience of U.S. states with regard to a number of issues it didn’t consider in its final lawmaking, such as the social justice and equity components related to legalizing a former drug. The Cannabis Act fails to provide amnesty to around 500,000 Canadians who have criminal records for dealing with cannabis in the past. California, by contrast, allowed for the expungement of past cannabis convictions when it legalized marijuana.
Canada’s legislation also fails to provide social equity programs as were introduced in Massachusetts, for example. Such programs provide communities and people who have been disproportionately harmed by the War on Drugs with the opportunity to participate in the legal marijuana industry. Nor does the law reserve a portion of the cannabis revenue generated to support such impacted communities.
“I think this is part of the overall issues on replacing a War on Drugs model with something focused on public health and human rights,” says Sweanor. “That will require additional political will and further regulatory change but will also likely require a more informed global discussion on international protocols that make it very difficult for a country like Canada to simply accept that the War on Drugs was a terrible policy and to enact a public health-focused alternative.”
On the production side, the Cannabis Act has also sparked debate. The law intended to enable small-scale production of cannabis but unrealistically demanded that applicants for a license already have a manufacturing facility in place. In the blink of an eye, Canada’s cannabis market became dominated by a small number of large corporations—marijuana startups in which bigger players from other sectors, most notably the tobacco and alcohol industries, had bought into. “They were almost certainly massively overvaluing those companies,” Sweanor points out. “There are still options for small-scale cultivators but also open flouting of the law by illicit growers. Though hard for some policymakers to accept, it would have likely made sense to make the illicit growers part of the solution rather than put them in direct opposition to the government’s plans.”
Eliminating the stigma
Although Canada will have to fine-tune its cannabis legislation, it has certainly achieved one thing: The stigma surrounding pot has been erased quickly. “The idea of this being positioned as a public health issue and a way to counter the illicit trade was eclipsed by messaging from media that essentially said, ‘party time!’” says Sweanor. “That was undoubtedly a message that played well with much of the public but likely encouraged more use rather than safer use. Marijuana use was already common before the law was changed, but I now witness it in different sorts of places, such as middle-aged patrons standing outside a high-end restaurant.”
Canada now serves as a role model for other states seeking to introduce legal marijuana for recreational purposes, such as Luxembourg (see “Luxembourg, Loaded,” Tobacco Reporter, February 2020). “Ideally, other countries can leapfrog Canada by following a model closer to what Portugal has done on drugs,” says Sweanor.
Portugal has not legalized any drugs but has decriminalized use and possession of all drugs in a way that moves the focus from criminal punishment to treatment. “The casualties, both individual and societal, from trying to conduct a War on Drugs have been catastrophic,” says Sweanor. “A humane and pragmatic public health orientation with ongoing monitoring should be the goal. The problems faced in changing cannabis regulations should stand as a warning to governments about the deleterious impact of making laws during an orchestrated moral panic. The lessons of the War on Alcohol were not heeded as countries embarked on the War on Drugs, and we are now seeing the same process in a War on Nicotine. We need to heed the advice President Obama gave on foreign policy: ‘Don’t do stupid shit.’”
The Grand Duchy is on its way to legalize cannabis, but
pitfalls remain.
By Stefanie Rossel
In late 2018, Luxembourg made headlines when it announced
that it would become the first country in Europe to legalize the cultivation,
sale and recreational consumption of cannabis. Part of an election promise, the
plan has become enshrined in the coalition agreement between the governing
liberals, social democrats and the green party.
Once enacted, the law would be even more permissive than legislation
in the Netherlands, which presently has the most liberal cannabis policy in the
EU. While recreational use, possession and trade of nonmedicinal drugs are
technically illegal under Dutch law, the country tolerates recreational drug use
as well as ownership and dealing under certain circumstances. Dutch authorities
reason that it’s more effective to spend their resources on minimizing the harm
caused by recreational drug use than on chasing the unattainable goal of a
drug-free society. Inconsistently, however, the Dutch government does
enforce its ban on cannabis cultivation.
Luxembourg wants to go further. Health Minister Etienne
Schneider, who is a passionate critic of the country’s repressive drug policy
as it has been applied during the past 50 years, wants to drain the black
market by permitting cannabis consumption by adults, establishing
state-controlled hemp cultivation and licensed stores for the sale of
quality-assessed cannabis products at competitive prices.
Although Schneider said upon his reelection that he aimed to
fully legalize cannabis by 2021 at the latest, one year later, there is still
no sign of concrete cannabis regulation in the Grand Duchy. In early 2019, the
country’s ministers of health and justice commissioned a working group to
analyze the issue, taking into consideration the experience of other countries
as well as scientific literature, a spokesperson of Luxembourg’s government
told Tobacco Reporter. “There is no set timeframe,” she said. “We want
to take the time needed and not rush this important project.”
The slow progress is likely also due to unexpected resistance
to the plan. Worried citizens in neighboring Germany have already asked their
government to close the border following the legalization of cannabis in Luxembourg.
A provision in the proposed law prohibiting the sale of cannabis to non-Luxembourgers
has done little to ease the concerns; around 200,000 foreigners commute daily
to work in the Grand Duchy, which has a population of 614,000.
The rules under discussion reportedly will limit cannabis
use to the private sphere; public consumption will remain off-limits. Private
hemp cultivation will also be forbidden. According to the government, farmers
interested in the crop can apply for licenses. The tax earnings from
cultivation and a marketing chain will be spent on the prevention of drug
abuse. The planned regulation is also likely to limit concentrations of THC, a
provision that some say may drive consumers back to illicit sources. Critics fear
that these and other provisions will dilute the rules to the extent that
“liberalization” may end up being very similar to the current prohibition.
Careful regulation needed
Luxembourg legalized cannabis for medical use in 2018,
albeit within strict limits. Only patients who are terminally ill can get
cannabis prescriptions. Prescribing doctors are required to undergo training by
the Ministry of Health. According Tageblatt, a local German language
newspaper, demand has been higher than expected: 270 patients were given
cannabis between February and June 2019, which in July prompted the government
to advise authorized doctors not to treat new patients with medicinal cannabis
until October.
The market for cannabidiol (CBD), the nonpsychotropic
ingredient of the cannabis plant, has grown in recent years. Meanwhile, CBD
oils, creams or tea are sold in around 35 shops across the country. After the
government announced its legalization plan, the shops were set up by
entrepreneurs hoping to one day turn them into “coffee shops” similar to those
in the Netherlands. Pharmacies are not allowed to sell CBD products. While the
sale of cannabis flowers is permitted, use of the substance in cosmetics is
not. As a nutrition supplement, concentrated CBD in January 2019 was defined as
a “novel food” that is required to pass an approval procedure.
As long as their THC content is below 0.3 percent, CBD
products are legal. Since Dec. 1, they have been subject to tobacco taxation,
meaning that an excise duty of 33.15 percent as well as 17 percent VAT is added
to the price of each gram. The measure is anticipated to dampen demand and shutter
many CBD shops.
The cultivation of industrial hemp has been legal in Luxembourg
since 1994. It plays an important role in the food industry, the construction
sector and the garment business. After the legalization, cannabis will present
famers with a potential new source of income and an opportunity for agricultural
diversification. Taking Canada as an example, Luxembourg’s government hopes for
a similar “green rush.”
In October 2018, Canada fully legalized marijuana. As of
July 2019, cannabis had contributed $8.26 billion to the Canadian economy,
according to Bloomberg. Jobs in the sector nearly quadrupled to 9,200 jobs
during that period.
Looking at experience with cannabis legalization in Canada
and the Netherlands, Luxembourg’s regulators should, however, also consider
other factors. While after more than a year into legalization, Canada’s
producers nearly produce enough legal cannabis to meet annual demand, it
appears that their products are not what consumers are looking for. With the
THC content of legal products limited, some consumers are still buying from illicit
sources. As a result, Canada’s black market still thrives—an unintended
consequence that Luxembourg hopefully will be able to avoid.
Stefanie Rossel
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
