Category: Top News

  • Lawmakers Send Flavor Ban to Vermont Senate

    Lawmakers Send Flavor Ban to Vermont Senate

    Vermont lawmakers Friday approved a ban on flavored vaping and other flavored tobacco products.

    S.18 would end retail sales of all flavored e-cigarettes, e-liquids, and oral nicotine pouches. The bill would also end the sale of all menthol-flavored tobacco products, including cigarettes, cigars, pipe tobacco, and smokeless tobacco, by January 1st, 2026.

    The legislation, which has been debated for at least six years, faced a fierce lobbying campaign from retailers who said it would put many out of business. Some lawmakers have also balked at the loss of millions in tax revenue, according to media reports.

    But supporters say the adverse health impacts on young people who get hooked on the products are just too great. Lawmakers spoke on the House floor Thursday about the extensive testimony from medical professionals, educators, parents, and members of the BIPOC community in support of the bill.

    The bill will now return to the Senate, which passed a different version of the bill last year. The governor has not yet indicated if he will sign it.

  • UKVIA Discusses Vape Waste Management

    UKVIA Discusses Vape Waste Management

    Image: bennyrobo

    The U.K. Vaping Industry Association (UKVIA) will host a webinar on the “Future of Vape Waste Management Post-Disposables,” according to the organization’s website.

    The Waste Electrical and Electronic Equipment (WEEE) Directive consultation period ended at the beginning of March. This consultation period has implications for the vaping sector, according to the UKVIA, including: policy makers potentially introducing a dedicated category under the WEEE directive; responsibility for collection and treatment of vape waste possibly moving completely to producers; and a potential new curbside household collection service for electronics, potentially including vape devices.

    The WEEE consultation section that relates to vaping was designed to review current regulations due to the environmental challenges associated with single use vapes. However, disposables are now about to be banned in the U.K., raising questions about how the WEEE regulatory reform would affect the vapor industry.

    The webinar will discuss these issues and take place on Monday, April 15, 2024.

    Despite these reforms, a UKVIA investigation showed that there is a lack of interest in vape recycling in the U.K.

    The investigation showed that 80 percent of major U.K. city councils and London borough councils surveyed had “no plans” to invest in new vape collection solutions in the next year.  

    As part of the investigation, Freedom of Information requests were issued by the UKVIA prior to the single-use vape ban to 10 major provincial city councils and 10 central London councils, including Birmingham, Manchester, Cardiff, Glasgow and Westminster.

    Of those surveyed, 60 percent said they offer vape was disposal at civic amenity sites (or designated collection facilities). One in 10 have introduced vape waste containers in public places while about one-third do not offer vape waste disposal containers or drop-off points of any kind. Only one of the councils has introduced curbside or household vape collection to date.

    “Councils are not anti-vapes, which are shown to be less harmful than smoking and have a place as a tool to use in smoking cessation,” said a spokesperson for the Local Government Association, which represents all the authorities contacted as part of the investigation and is one of the organizations that called for a disposable ban. “However, disposable vapes are fundamentally flawed in their design and inherently unsustainable products, meaning an outright ban will prove more effective than attempts to recycle more vapes.”

    Research by Material Focus showed that 70 percent of people throw away their single-use vapes because “they didn’t know they could recycle them.” Of those surveyed, 44 percent of vapers said they would recycle their single-use vapes if there were recycling points on a street or in a park while half said they would be likely to recycle if curbside recycling was available.

    “Advocating a ban on disposable vapes on environmental grounds while not committing any investment to vape waste collection, despite the need for such facilities in public places—which are controlled by local government—is a cast of the pot calling the kettle black,” said John Dunne, director general of the UKVIA, in a statement. “Even when single-use vapes are no longer available in retail outlets, there will still be millions of rechargeable and refillable vapes sold every year, not to mention a rise in black market products that will arise from the ban on disposables. So, the lack of investment in collection facilities and foresight around the need to make the disposable of vapes as convenient as possible is startling and extremely concerning.

    “We are under no illusions as to what the industry needs to do to ensure it is environmentally responsible, which is why the sector has invested in producing more sustainable products, providing recycling education for consumers, rolling out recycling initiatives and innovations and ensuring it is compliant with regulations. The UKVIA is also involved in the development of a vape licensing scheme, which has just presented to parliamentarians, and, if adopted, will require retailers to provide take-back facilities in-store before being allowed to sell vapes.

    “We can, and will, do much more to ensure environmental compliance across the sector, but that doesn’t mean local government can simply offload its responsibility for providing vape waste collection facilities in public places. The industry pays its business rates like any other sector, and this makes up one of the largest sources of income for local authorities—a percentage of which is earmarked for waste management. If local authorities can provide public waste disposal facilities for all types of waste, why not used vapes?

    “Whilst I am sure vaping manufacturers and retailers could be encouraged to partner with local authorities to create more public collection points for vape waste, the industry can’t just put such facilities on streets and in parks, as is required. We need all the players in the vape waste ecosystem to be joined up if we are to protect both the environment and the health of former smokers.”

    “Currently, a significant volume of used vaping products are being wrongfully disposed of in the general waste bin and ultimately end up at landfill,” said Steward Price, head of producer responsibility services with Waste Experts. “This powerful data demonstrates that much more needs to be done to educate consumers on the correct disposal of their waste vapes and reinforces the need for a much stronger collection and recycling infrastructure for this challenging waste stream.”

  • Altria Loses Juul Appeal in British Columbia

    Altria Loses Juul Appeal in British Columbia

    Image: StandbildCA

    Altria Group has lost an appeal to challenge the territorial jurisdiction of the British Columbia courts in a Juul class action lawsuit, reports Victoria Now.

    “The plaintiffs allege the e-cigarette devices are hazardous products but were falsely marketed as a desirable, safe and healthier alternative to smoking,” the civil claim states. “The plaintiffs additionally allege that the defendants conspired together to addict a new generation to nicotine or, alternatively, conspired to maintain and expand the market for Juul products using unlawful means knowing that addiction and other injuries were likely to result.”

    Altria was brought into the litigation with Juul Labs Canada and Juul Labs USA in September 2020, a year after the original civil claim was filed, following Altria acquiring a 35 percent stake in Juul in 2018 for $12.8 billion.

    According to the litigation, Juul and Altria allegedly “conspired” to “employ strategies perfected in the cigarette industry” to advertise and market Juul products to youth.

    “It is alleged that the defendants exploited regulatory loopholes and relied on social media and other viral advertising methods to hook young people on Juul, despite the defendants’ knowledge of the dangers associated with vaping. Altria is alleged to have provided strategies, analyses and services to the defendants in furtherance of the conspiracy,” a judgment reads.

    Altria’s claim that the British Columbia courts did not have jurisdiction over the action was dismissed in 2022. Altria then appealed the decision, claiming the judge “failed to address evidence that was materially relevant.”

    Altria argued that the judge ignored or misconceived evidence that Altria did not ship Juul products to Canada or send Juul marketing materials to Canadian addresses, among other things.

    The appeal decision found that there is not a real and substantial connection because class members may have “hopped the border and been influenced by Altria’s activities in the United States.”

    “Rather,” the appeal decision reads, “the judge found that the respondents established a good arguable case that Altria was a party to a conspiracy to advertise and market Juul e-cigarettes to young people in a manner that was misleading about the health risks, including the risk of addiction.”

  • Federal Judge OKs Altria, Juul Class Action

    Federal Judge OKs Altria, Juul Class Action

    Image: H_Ko

    A federal judge approved the final part of a class action settlement with the e-cigarette company Juul Labs and its parent company Altria, bringing the settlement total to just over $300 million.

    In 2018, the plaintiffs charged Juul Labs with misleading the public about the addictiveness of Juul and the risk of the e-cigarettes and its nicotine cartridges.

    The plaintiffs also said Juul had targeted teenagers with candy-flavored Juul pods and “multimillion-dollar ad campaigns and social media blitzes using alluring imagery.”

    The case survived a number of hurdles: The judge denied multiple motions to dismiss the suit and agreed to certify four different classes of plaintiffs (a nationwide class, a nationwide youth class, a California class and a California youth class).

    In January, the judge gave preliminary approval to a $255 million settlement between Juul Labs and the plaintiffs, according to Courthouse news. Friday’s ruling grants approval to Altria’s payment of $45,531,250. The sides have yet to reach an agreement on attorneys fees.

    “Court finds that this monetary recovery is fair, reasonable, and adequate given the risks of proceeding to trial and the maximum recovery potentially available to Settlement Class Members if the Class Representatives had prevailed at trial,” wrote U.S. District Judge William Orrick in his order.

    Last year, Juul agreed to pay six states $462 million to settle claims that it had marketed its vaping products to teenagers. The year before that, it agreed to pay $438.5 million to 33 different states and Puerto Rico.

    Altria Group exchanged its entire investment in Juul Labs in 2023 for a non-exclusive, irrevocable global license to certain of Juul’s heated tobacco intellectual property.

  • Hong Kong: Increase in Quit-Smoking Requests

    Hong Kong: Increase in Quit-Smoking Requests

    Image: chrisdorney

    Hong Kong has seen an increase in calls to its smoking cessation hotline following the tobacco tax increase to 70 percent. Legislative Council member Rebecca Chan Hoi-yan has asked the government to enhance assistance to people who wish to quit smoking, according to The Standard.   

    Cigarettes in Hong Kong now cost at least HKD94 ($12.01).

    Following the announcement of the tax hike, the weekly average number of people calling the quit-smoking hotline increased by four times.

    Chan has expressed concern that the government may not follow up on the cases and determine how many people are successful in quitting smoking or how many people eventually resume smoking. According to Chan, there is a need for continuous efforts to understand the reasons behind successful quitting and the challenges of those who resume smoking.

    She also called for comprehensive tobacco control policies by “focusing on target groups, such as teenagers, and implementing measures to track families in order to prevent teenagers from smoking.”

    “The government should focus on better education and promotional efforts instead of solely relying on increasing tobacco duty,” said Peter Shiu Ka-fai of the wholesale and retail sector. He argued that it is important to inform smokers of the harmful effects of cigarettes and respect their choices.

  • Netherlands Probes Tobacconist Support

    Netherlands Probes Tobacconist Support

    Photo: jordi2r

    The Netherlands’ food and consumer product safety organization, NVWA, will investigate cigarette manufacturers’ support of tobacconists, which critics insist amounts to illegal advertising, reports Dutch News.

    Dutch law prohibits the advertising, promotion, sponsoring and marketing of tobacco products.

    The investigation was prompted by a news report that said Philip Morris International is giving money to people who are opening new tobacco shops ahead of a ban on the sale of cigarettes in supermarkets scheduled to take effect in July.

    In the runup to the ban, the number of specialist cigarette shops, often in the direct vicinity of supermarkets, has risen for the first time in more than 10 years.

    “A lot of adult smokers will be looking for new outlets,” a PMI spokesperson told Distrifood. “We are very willing to work with those entrepreneurs who share our vision of the future,” he said.

    Almost a quarter of the Dutch population smokes.

  • Finland Aims for Pouch Regulation Like Tobacco

    Finland Aims for Pouch Regulation Like Tobacco

    Photo: ir1ska

    The government of Finland wants to bring nicotine pouches under tobacco laws so that it can more effectively discourage consumption, reports YLE.

    Among other measures, it wants to curb pouch nicotine levels to 20 milligrams per gram of product. In addition, the government wants to prohibit the online sales of nicotine pouches and limit the range of flavors, in an effort to reduce the products’ appeal to young people.

    Under the proposals, retailers selling pouches would need to obtain a license, while importers would face restrictions.

    The stated aim of the proposed legal reform is to prevent health risks and the use of oral nicotine among young people.

    The widespread availability of strong nicotine pouches in Finland has reportedly reduced the smuggling of oral tobacco products from neighboring Sweden.

  • Protesters Demand End to Mexico’s Vape Ban

    Protesters Demand End to Mexico’s Vape Ban

    Image: Sansert

    Vapers protested in front of Mexico’s Congress of the Union, calling for the country’s vaping ban to be replaced with risk-based regulation. The protest was organized by the World Vapers’ Alliance and All Vape Mexico.

    The protesters also demanded a halt to the constitutional reform proposed by President Andres Mauel Lopez Obrador that would elevate the ban to the Constitution. In addition, they called for approval of a risk-based regulation allowing adult smokers access to vapor products to quit smoking combustible cigarettes.

    Mexico’s vaping ban has been in place since May 2020.

    “The ban was introduced in order to prevent underage vaping; however, minors now have full access to potentially dangerous products on the black market,” said Alberto Gomez Hernandez, policy manager of the World Vapers’ Alliance. “At the same time, smokers who want to quit smoking have difficulty finding safe vaping products. The ban has clearly been a failure and must be reversed as soon as possible. Legislation cannot be based on whim or ideology; it must be based on scientific evidence and the experience of other countries that have had good results.”

    Vapes can easily be obtained on the informal market from underground vape shops and on the black market, which is controlled by organized crime groups.

    “It is very unfortunate that the federal government thought that the ban would prevent many young people from having access to vaping and does not give people who want to quit smoking the opportunity to use this option,” said Deputy Sergio Barrera. “We need to have clear rules. We need to know who can produce it, who can distribute it and who can consume it, and that is why we are pushing for regulation.”

    “The president sees a problem where there is actually a solution to smoking,” said Antonio Toscano, All Vape Mexico spokesperson. “His prohibitionist stance unprotects adult users, who are forced to buy black market products, where there are no quality controls, let alone controls on sales to minors. Prohibition is a danger to public health; good regulation could benefit public health enormously and save millions of lives.”

  • Altria to Sell Part of its Anheuser-Busch Stake

    Altria to Sell Part of its Anheuser-Busch Stake

    Photo: Rafael Henrique

    Altria Group plans to sell a portion of its investment in Anheuser-Busch InBev (ABI) through a global secondary offering. In addition, ABI has agreed to repurchase $200 million of ordinary shares directly from Altria, concurrently with, and conditional on, completion of the offering.

    Altria currently holds approximately 197 million shares of ABI, representing approximately 10 percent ownership. Altria, as the selling shareholder, is offering 35 million of ABI’s ordinary shares. In connection with the offering, Altria expects to grant the underwriters an option to purchase up to 5.25 million additional ABI shares owned by Altria, exercisable within 30 days following the pricing of the offering. In addition, Altria has agreed to a 180-day lockup with the lead underwriter for our remaining ABI shares.

    “As good stewards of shareholder capital, we consistently review options to unlock the value of our ABI investment, and we believe this is an opportunistic transaction that realizes a portion of the substantial return on our long-term investment,” said Altria CEO Billy Gifford in a statement.

    “Over the decades of our ownership, the beer investment has provided significant income and cash returns and supported our strong balance sheet. Our continued investment reflects ongoing confidence in ABI’s long-term strategies, premium global brands and experienced management team.”

    Following its investment sale notice, Altria announced a $2.4 billion increase to its existing $1 billion share repurchase program. The expanded program is expected to be completed by Dec. 31, 2024.

    Altria expects cash savings from the elimination of future dividend payments on the repurchased shares.

    “These opportunistic capital allocation decisions reflect our ongoing confidence in Altria’s future and the significant value offered in our shares today,” said Gifford. “We have a longstanding history of returning cash to our shareholders, and today’s announcement reflects our continued desire to create long-term shareholder value.”

  • Top KT&G Shareholder Opposes CEO Nominee

    Top KT&G Shareholder Opposes CEO Nominee

    Photo: zzzdim

    KT&G’s biggest shareholder is opposing the nomination of Bang Kyung-man as the cigarette manufacturer’s new CEO, reports Yonhap News. The Industrial Bank of Korea (IBK), which owns about 8 percent of KT&G, cited falling profitability and dubious business practices during the nominee’s tenure as a board member.

    On Feb. 22, KT&G’s CEO candidate recommendation committee selected Kyung-man Bang, senior executive vice president of KT&G, as the final CEO candidate, citing his performance on criteria such as management expertise, global acumen, strategic thinking skills, stakeholder communications and universal morality and ethical awareness.

    KT&G shareholders are due to vote on the nomination during the company’s annual general meeting on March 28. The appointment would mark KT&G’s first leadership change in nine years.

    IBK opposes Bang’s nomination because “KT&G’s operating profit has fallen more than 20 percent” since he was appointed as vice president of the cigarette maker, an IBK official was quoted as saying.

    “Given a decision to secure friendly shares using its own stocks, the independence and fairness of the current board of directors are bound to be seriously questioned,” the official said.

    In a regulatory filing dated March 12, IBK also made a shareholder proposal to improve KT&G’s governance by strengthening the expertise and independence of the board of directors.

    KT&G has faced pressure recently to be more transparent in its CEO selection process. In a video published ahead of the South Korean tobacco firm’s annual general meeting, KT&G shareholder Flashlight Capital Partners highlighted what it considered the problems during previous CEO nominations.

    In January, the incumbent CEO, Baek Bok-in, said he would not seek reappointment.