Category: Featured

  • Experts Urge Holistic Addiction Policies

    Experts Urge Holistic Addiction Policies

    Photo: YarikL

    National addiction policy makers and experts met in Brussels on Nov. 15 to discuss the Czech presidency of the Council of the EU and the best way to tackle various addictions, including alcohol, tobacco, gambling and digital technologies, at the EU level. The consensus is that the priority should be a holistic, compassionate and realistic approach to help those in need.

    “A world without drugs, tobacco, alcohol is not realistic and perhaps not healthy for people’s mental health. Extreme regulations have little effect on addictive behavior,” national drug coordinator Jindrich Voboril was quoted as saying in a press note. “What we can effectively do is to minimize the impact. Addiction policy should give adults access to less risky addictive products and let people make their own choices.”

    The roundtable, organized by The Institute for Rational Addiction Policies, also discussed the perspective on tackling addiction and the role that EU agencies such as the EMCDDA should play in this regard.

    “The European Parliament has sent a clear signal in its report on the Europe’s Beating Cancer Plan by stressing the importance of realistic, evidence-based policies. The European Commission should listen to the experts and take a rational and science-based approach,” said MEP Radka Maxova.

    Viktor Mravcik, Head of IRAP’s Science Department, presented examples from the Czech Republic, where a comprehensive harm reduction approach to alcohol and tobacco dependence has led to success. In the discussion that followed, Ales Rod, member of the National Advisory Committee on the Economy and Head of the Centre for Economic and Market Analysis, presented his recent study on best practices in managing tobacco dependence policies in several Member States, including the Czech Republic and Sweden.

    “If we conclude that a drug-free world is not possible, we should consider the implications of regulation. I also call on the upcoming Swedish presidency of the Council of the EU to address these issues as a matter of priority and ultimately help Europeans to tackle their addictions. After all, Sweden has done a lot in this area,” added Swedish psychologist and expert on addictions Karl Fagerstrom.

  • Philippines Tax Service Sets ENDS Floor Prices

    Philippines Tax Service Sets ENDS Floor Prices

    Photo: MilletStudio

    The Philippine Bureau of Internal Revenue (BIR) has set a floor price for heated, vapor and other electronic nicotine-delivery devices, reports ABS-CBN News

    The floor price for a 0.7 mL pod of nicotine is PHP131.04 ($2.29). For 1.8 mL and 1.9 mL nicotine salts, the minimum prices are PHP306.88 and PHP318.08, respectively.

    Meanwhile, the floor price for a 15 mL bottle of conventional freebase nicotine is PHP207.2. A bottle that contains 30 mL of classic nicotine has a PHP352.8 minimum price. 

    According to BIR East NCR director Edgar Tolentino, the new guidelines will help the economy and protect the health of minors. 

    “BIR will have exclusive jurisdiction over taxpayer registration, setting the products’ floor price, drafting and publication of revenue regulations covering vape items,” Tolentino said. 

    He also said the newly appointed BIR Commissioner Romeo Lumagui Jr. has a mandate to crack down on illicit vape traders. 

    “We need to support the plans of the commissioner; one thing is to focus on illegal vape sellers because if smuggling persists, we will be losing huge revenues from vape products,” he said. 

    Since 2019, the government has collected about PHP15.3 billion in vape taxes. 

  • Vapor Group Files Amicus Brief

    Vapor Group Files Amicus Brief

    Photo: David

    The Vapor Technology Association (VTA) has filed an amicus brief with the U.S. Supreme Court in support of a petition for writ of certiorari in a case against L.A. County’s ordinance banning flavored tobacco products.

    Citing the substantial impact on America’s economy created by the sale of tobacco products, the trade group says Supreme Court review of the flavor ban is critical.

    According to an economic impact report prepared by John Dunham and Associates, the independent vapor industry comprises more than 10,000 companies across the United States and is responsible for generating more than 130,000 jobs and more than $22 billion in economic activity for the U.S. economy.

    In its amicus brief, the VTA argues that this industry would be devastated by unrestricted flavor bans given its unique and substantial reliance on the sale of flavored vapor products to adult consumers.

    The trade group also notes that since the passage of the L.A. County Ordinance, leading tobacco control scientists have challenged the notion of banning e-cigarette flavors and have warned that decreasing availability of flavored vaping products harms the ability of adult smokers to quit smoking cigarettes.

    Instead of blanket bans, these tobacco control scientists endorse alternative time, place and manner restrictions for the sale of flavored vaping products, the VTA notes in its amicus brief.

    Permitting local and state governments to implement unscientific bans that directly interfere with the fundamental purpose of the Tobacco Control Act and would overrule the Food and Drug Administration’s decision-making for products deemed appropriate for the protection of public health is not only unlawful but is dangerous from a public health perspective, the VTA wrote.

    Tobacco and vape flavor bans have gained momentum in the U.S. On Nov. 8, Californians voted to uphold a state law ending the sale of most flavored tobacco products.

  • Vapor Firms Warned for Targeting Children

    Vapor Firms Warned for Targeting Children

    Photo: FDA warning letter to Wizman Limited

    The U.S. Food and Drug Administration on Nov. 16 sent warning letters to five e-cigarette companies for targeting children with products packaged to look like toys, food or cartoon characters. None of the manufacturers submitted a premarket application for any of the unauthorized products.

    The unauthorized products described in the warning letters include e-cigarettes that are designed to look like toys and electronics like glow sticks, Nintendo Game Boy and walkie-talkies. Some of the e-cigarettes feature youth-appealing characters from TV shows, movies and video game characters while others imitate foods like popsicles.

    “The designs of these products are an utterly flagrant attempt to target kids,” said Brian King, director of the FDA’s Center for Tobacco Products, in a statement. “It’s a hard sell to suggest that adults using e-cigarettes with the goal of quitting smoking need a cartoon character emblazoned across the front of the product in order to do so successfully.”

    Critics noted that four of the five companies targeted companies based in China, where the FDA has no jurisdiction.

    “Companies in China—like those cited today—manufacture products for sale around the world, not just in the United States,” wrote Jim McDonald on Vaping360. “The FDA cannot enforce its rules for U.S. manufacturers against Chinese companies or against retailers in other countries.”

    The recipients of the FDA letters are Wizman Limited doing business as Wizvapor, Shenzhen Fumot Technology Co., doing business as R and M Vapes, Shenzhen Quawins Technology Co., Ruthless Vapor and Moti Global.

  • KAC: Seize Potential of Safer Nicotine

    KAC: Seize Potential of Safer Nicotine

    Photo: Sved Oliver

    Knowledge-Action-Change (KAC) has published The Global State of Tobacco Harm Reduction 2022: The Right Side of History. The Global State of Tobacco Harm Reduction (GSTHR) publication charts the history of tobacco harm reduction and considers the future of a strategy that can hasten the end of smoking and drastically reduce smoking-related death and disease worldwide.

    According to the report’s authors, the emergence of new safer nicotine products has caused substantial disruption to nicotine use, public health and tobacco control institutions and the traditional tobacco industry. However, mistrust and ideological opposition is hampering widespread adoption of a strategy that could help 1.1 billion adult smokers failed by existing tobacco control interventions.

    “Technology helped smoking become one of the world’s biggest health problems,” said Harry Shapiro, author of The Right Side of History, in a statement. “Now, technological innovations from beyond both the tobacco industry and public health have combined to produce safer nicotine products, and millions of people who smoked have already chosen to switch. Yet progress is being hampered. Although disruption is not always comfortable, the genie is out of the bottle—these new technologies demand the development of new policies and new thinking.”

    “A failure to recognize and exploit the potential of tobacco harm reduction will mean millions more avoidable deaths each year.”

    “A failure to recognize and exploit the potential of tobacco harm reduction will mean millions more avoidable deaths each year and contribute to an ever-growing burden of disease that disproportionately affects the most vulnerable countries and communities,” said Gerry Stimson, GSTHR project lead and emeritus professor at Imperial College London.  

    “Tobacco control’s lack of evolution, despite its very limited gains, means that many aspirational targets to achieve smoke-free status by 2030 or within the next generation are no more likely to be met than former aspirations for a drug-free world. Tobacco harm reduction offers us an historic opportunity. We must not let it slip away.”

    The Right Side of History is the third in the biennial series of GSTHR reports, following No Fire, No Smoke in 2018 and Burning Issues in 2020. A summary of the most recent report is here. The GSTHR project is produced with the help of a grant from the Foundation for a Smoke-Free World.

  • Snowplus Obtains China Production License

    Snowplus Obtains China Production License

    China’s State Tobacco Monopoly Administration has granted Snowplus Tech a production license that allows the company to produce 80 million pods annually. In a press note, the company said it will now take on the “challenge and responsibility to help lead the development of a healthy and sustainable vaping industry.”

    While the U.S. government has strict regulations for vaping products, there has been a rise in fake or counterfeits of popular brands in the country, which has led to an increase in incidents relating to poorly manufactured variations, according to Snowplus. This, the company says, highlights the importance of using a reputable, tested and certified vape product.

    Snowplus stresses that its products are designed in-house, developed by experts in specialist R&D centers and manufactured in one of the largest, most advanced e-cigarette facilities in the world.

    Established in January 2019 and backed by investors such as Zhen fund and Sequoia, Snowplus has more than 60 criteria for testing to ensure product safety and quality. With three CNAS certified research laboratories, its safety protocols are recognized and interoperable by 65 institutions in 50 countries, according to the company.

    “There is an increasing trend for cheap counterfeit vapes on the market, which we find deeply concerning,” said Derek Li, Snowplus co-founder and head of overseas markets. “That is why we have invested heavily in product research to create products that enhance the vaping experience while ensuring it is as safe as possible.”

    Snowplus has invested over $2 million in quality and safety research, and to help prevent e-liquid from leaking out of products, it conducts impact tests in variable temperature, humidity and pressure conditions, according to the company. In addition, Snowplus’ batteries pass two tests before assembly to “guarantee that devices can operate in different environments,” the firm wrote in its press release.

  • Sales Down, Margins Up for RLX Technology

    Sales Down, Margins Up for RLX Technology

    Photo: Tobacco Reporter archive

    RLX Technology reported net revenues of RMB1.04 billion ($146.8 million) in the third quarter of 2022, down from RMB1.68 billion in the same period of 2021. The decrease was due primarily to the suspension of store expansions and the discontinuation of older products during the transition to the new national standards, according to the Chinese vapor product manufacturer.

    Gross profit was RMB522 million for the quarter compared with RMB656 million in the same period of 2021. Gross margin was 50 percent compared with 39.1 percent in the prior year period. RLX Technology attributed the improvement to a favorable change in channel mix. Because the company gradually terminated partnerships with distributors who did not obtain wholesale licenses during the transition period, its sales contribution from retail stores increased as RLX began to directly provide products to these retail stores. The company benefited also from a decrease in direct cost related to promotional activities.

    “During the third quarter of 2022, we remained dedicated to preparing for a smooth transition to the new national standards, which came into full effect on Oct. 1, 2022. Specifically, we wound down shipments of our older products and gradually switched to the National Transaction Platform on a regional basis. We have now achieved full geographical coverage nationwide,” said Ying Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.

    “In addition to our efforts to proactively adapt to the new standards, we have focused on fulfilling our social responsibilities, which we see as one of our core competitive advantages. We recently published our annual corporate social responsibility report, summarizing our endeavors with respect to market responsibility, R&D investment, environmental protection, employee career development and corporate governance. I am proud to share that our latest S&P CSA ESG score ranked ahead of 67 percent of our global peers, representing a powerful commendation of our commitment to sustainability and ESG best practices.”

    “We delivered net revenues of approximately RMB1 billion in the third quarter, recording a sequential decrease mainly due to the discontinuation of older products during the transition to the new national standards as well as the second quarter’s high comparison basis mainly attributable to frontloading of sales in anticipation of the discontinuation of older products. We remain confident that our diversified portfolio will continue to satisfy adult smokers’ needs and that our sales will gradually recover,” said Chao Lu, chief financial officer of RLX Technology.

    “Meanwhile, our continuous efforts to improve operational efficiency are proving effective, evidenced by a 30.9 percent quarter-over-quarter decrease in non-GAAP operating expenses. However, our profitability in the coming quarters will be adversely affected by the application of 36 percent consumption tax to e-cigarettes manufacturers since Nov. 1, 2022. Cost control measures will remain at the forefront of our strategic initiatives as we navigate the evolving regulatory environment while maintaining our sustainable long-term growth.”

  • GVB Opens Distribution Facility in Netherlands

    GVB Opens Distribution Facility in Netherlands

    Photo: vchalup

    GVB Biopharma has opened a distribution facility in the Netherlands to support its growing business in Europe, the Middle East and Africa. The new facility will increase customer access to GVB’s hemp/cannabis products, speed up transaction flow and optimize cross-border tax and customs treatment, according to GVB parent company 22nd Century Group.

    Recent increases in GVB’s U.S. manufacturing capacity are complementary to the advent of the company’s Netherlands distribution facility, the company noted. Additional capacity is in part earmarked to satisfy increasing demand in European markets where margins are higher than in the U.S.

    “We are excited to expand our business operations in Europe, allowing our customers and partners to access quality products in a more efficient manner,” said 22nd Century Group CEO James A. Mish in a statement.

    “With our new Netherlands distribution facility, we can now deliver product to our partners in half the time and better serve our growing customer base with quality distillate and isolates. In Europe, the hemp/cannabis industry is expanding rapidly and is expected to reach €3.2 billion [$3.33 billion] by 2025. Our new facility will allow us to capture more of that market share, scale our operations and expand our customer base in this region.”

  • Bomhard: Imperial Gaining Traction

    Bomhard: Imperial Gaining Traction

    Imperial Brands reported net revenue of £32.55 billion ($38.93 billion) for its fiscal year 2022, which ended Sept. 30. The figure was down 0.7 percent from 2021. Operating profit declined 14.7 percent to £2.68 billion. On an adjusted basis, net revenue was up 2.7 percent to £7.79 billion while operating profit increased 3.5 percent to £3.69 billion.

    Imperial Brands insisted its five-year strategy is on track and delivering improved operational performance. The company’s aggregate market share in its top-five combustible markets was up 35 base points, reflecting Imperial’s first annual share gain in more than five years. Net revenue from next-generation products was up 11 percent driven by market launches in all categories. The company also reported increased shareholder returns with 1.5 percent growth in dividend enhanced by an ongoing £1 billion share buyback.

    “In line with our five-year strategy, increased investment and a more consumer-centric approach have improved delivery in both our priority combustible markets and our next-generation product operations,” said Imperial Brands CEO Stefan Bomhard in a statement. “At the same time, disciplined capital allocation has strengthened our balance sheet to reach our target leverage. This has enabled us to enhance shareholder returns through an ongoing share buyback program alongside a progressive dividend.

    “In tobacco, a sharper focus on brand building and sales execution has supported aggregate market share gains in our top five priority markets. Price mix improved in the second half, helping to offset the anticipated acceleration in volume declines, which occurred as borders reopened, prompting a return to pre-Covid buying patterns.

    “In NGP, successful consumer trials have validated our approach, and we are now stepping up investment in new product and market launches across all three product categories. Our heated-tobacco proposition, Pulze and iD, continued to perform well in our pilot markets of Czech Republic and Greece, and we have recently launched in Portugal, Hungary and Italy, the largest European market for this category. Following the successful French trial of our new vapor device, Blu 2.0, we have now launched in the U.K. In modern oral, we expanded our range of flavors for Zone X in key markets and successfully introduced the Zone X format into Norway.

    “Looking ahead, we are well positioned to deliver against the next phase of our five-year strategy. The additional investment and the actions we have taken during the initial two-year strengthening phase have built stronger foundations as we face into a more challenging macroeconomic environment. We are well placed to build on our track record of delivery over the next three years, improving returns and creating sustainable growth in shareholder value.”

  • Smoking and Vaping Banned at World Cup

    Smoking and Vaping Banned at World Cup

    Photo: GIROMIN Studio

    In line with the FIFA Event Policy for Tobacco and the World Health Organization’s recommendations for mega-sporting events, Qatar has banned smoking and vaping in stadiums during the FIFA football World Cup scheduled for Nov. 30–Dec. 18.

    The ban on vaping appears redundant as Qatar already bans the import, sale and purchase of e-cigarettes. Violators risk fines of up to QAR10,000 ($2,747) or up to three months in prison.

    Qatar plans to deploy 80 tobacco inspectors to support FIFA volunteers and security staff in enforcing the restrictions.

    The country will be assigning a team of 80 tobacco inspectors to support security staff in enforcing the smoking restrictions during the World Cup.

    “Qatar has been a frontrunner in tobacco control in the region,” said Kholoud Ateeq K M Al-Motawaa, head of noncommunicable disease for Qatar’s Ministry of Public Health, in a statement. “For the FIFA World Cup, tobacco control measures have been developed for inside and outside stadiums, especially in public places, while tobacco-free environments in fan zones will be rigorously enforced where supporters without tickets can watch games on large screens surrounded by smoke-free air.”

    In an overview of World Cup restrictions prepared for American soccer fans, smokeless tobacco manufacturer Nicokick noted that, unlike e-cigarettes, nicotine pouches are legal in Qatar.