Canada - Tobacco Reporter

Individual Stick Warnings Coming

Canada will soon require that health warnings be printed directly on individual cigarettes—becoming the first country in the world to take this approach, according to the Government of Canada.

The new Tobacco Products Appearance, Packaging and Labeling Regulations will be part of the government of Canada’s continued efforts to help adults who smoke to quit, to protect youth and nontobacco users from nicotine addiction and to further reduce the appeal of tobacco. Labeling the tipping paper of individual cigarettes, little cigars, tubes and other tobacco products will make it virtually impossible to avoid health warnings altogether. In addition, the regulations will support Canada’s Tobacco Strategy and its target of reaching less than 5 percent tobacco use by 2035, according to a government press release.

These regulations will come into force on Aug. 1, 2023, and will be implemented through a phased approach that will see most measures on the Canadian market within the year. Retailers will carry tobacco product packages that feature the new health-related messages by the end of April 2024. King-size cigarettes will be the first to feature the individual health warnings and will be sold by retailers in Canada by the end of July 2024 followed by regular size cigarettes, little cigars with tipping paper, and tubes by the end of April 2025.

Other measures include strengthening and updating health-related messages on tobacco product packages; extending the requirement for health-related messaging to all tobacco product packages; and implementing the periodic rotation of message.

The new regulations will be published in the June 7, 2023, edition of the Canada Gazette—Part II. In the interim, copies of the full regulations are available upon request by contacting pregs@hc-sc.gc.ca.

June 1, 2023

Group Blasts Quebec Flavor Ban Proposal

A proposal by the government of Quebec to ban nontobacco-flavored nicotine vaping products will have negative consequences for public health if enacted, according to the Canadian Vaping Association (CVA).

In addition to the flavor restrictions, the recently released draft legislation proposes a volume limit of 2 mL on prefilled devices and a limit of 30 mL on refill containers. Additionally, the regulations would restrict nicotine concentrations to 20 mg/mL and prohibit the use of any form, appearance or function that may be attractive to minors, both of which have already been regulated by the federal government.

If the draft rules are implemented, Quebec, with its population of 8.5 million, will become the largest Canadian province to prohibit flavors, according to Vaping360. Quebec is the country’s second-most populous province. According to the Alliance of Vape Shops in Quebec, there are over 400 independent vape shops in the province, employing over 2,200 people and generating more than $300 million in economic activity. The trade group predicts the shops will all close.

Quebec’s decision to ban flavors is a major win for tobacco companies, out-of-province vendors and contraband sellers.

Darryl Tempest, government relations counsel to the CVA board

In 2021, federal health agency Health Canada proposed a flavor ban that was scheduled to take effect in early 2022, but that plan seems to have been abandoned or postponed indefinitely without explanation. Health Canada’s updated vaping products regulations page makes no mention of the flavor restrictions.

The CVA says Quebec proposed its rules despite warnings by the industry about their negative impacts. Vaping is proven to be significantly less harmful than smoking, according to the CVA, which says there is substantial evidence from jurisdictions that have already implemented flavor bans that the public health outcome is negative, as many vapers will return to smoking and fewer smokers will switch to vaping.

“Quebec’s decision to ban flavors is a major win for tobacco companies, out-of-province vendors and contraband sellers,” said Darryl Tempest, government relations counsel to the CVA board, in a statement. “What Quebec has done is shift demand to tobacco owned products, retailers outside of Quebec and criminals. Quebec’s small businesses and domestic industry will be irreparably harmed in favor of multinational corporations,” said Tempest.

April 21, 2023

Menthol Ban Failed to Boost Illegal Sales

Banning menthol cigarettes does not lead more smokers to purchase menthols from illicit sources, according to a new research study published in Tobacco Control.

Researchers at the International Tobacco Control (ITC) Policy Evaluation Project at the University of Waterloo evaluated the impact of federal and provincial menthol cigarette bans in Canada by surveying smokers of menthol and nonmenthol cigarettes before and after Canada’s menthol ban.

Smokers were asked whether their usual cigarette brand was menthol-flavored and to report their last brand purchased. Those who were still smoking after the menthol ban were also asked where they last purchased their cigarettes.

Results showed that after the ban, there was no significant change in the purchase of cigarettes from First Nations reserves, the main source of illicit cigarettes in Canada.

“The tobacco industry has a long history of claiming that policies to reduce smoking will lead to substantial increases in illicit trade,” said Janet Chung-Hall, a research scientist for ITC and lead author of the new study, in a statement. “We can add the Canadian menthol ban to the long list of effective policies, such as graphic warnings and plain packaging, whose evaluation disproved the scare tactics by industry—showing that illicit trade did not, in fact, increase.”

A 2022 study that combined the ITC project data with data from a comparable Ontario evaluation study showed that the Canadian menthol ban led to an increase of 7.3 percent in quitting among menthol smokers above that of nonmenthol smokers. Projecting this effect to the U.S., whose Food and Drug Administration has proposed its own menthol ban, the ITC researchers estimate that a U.S. menthol ban would lead 1.33 million smokers to quit.

“Our previous research from Canada and the Netherlands showed that a menthol cigarette ban leads to significant reductions in smoking,” said Geoffrey Fong, principal investigator of the ITC project and professor of psychology and public health sciences at Waterloo. “These findings combine to provide powerful evidence in support of FDA’s proposed menthol ban.”

January 12, 2023

Cabbacis Patents Low-Nicotine Pods in Canada

A U.S. federally licensed tobacco product manufacturer focused on harm reduction products announced today that the Canadian Intellectual Property Office (CIPO) has issued patents for its pods comprising blends of very low-nicotine tobacco and hemp for use with electronic nicotine-delivery systems (ENDS).

Canadian Patent No. 3,151,047 was issued to Cabbacis and includes 27 claims which will expire on September 10, 2040. Earlier in 2022, CIPO also issued Patent No. 3,107,796 to Cabbacis for cigarettes comprising blends of very-low-nicotine tobacco and hemp.

“I am pleased that both types of our products are now patented in Canada, which is one of our early target countries for commercialization,” said Joseph Pandolfino, founder and president of Cabbacis.

Primary applications of the company’s very low-nicotine cigarettes and vaping pods in development comprising blends of very low-nicotine tobacco and hemp are to assist smokers of conventional cigarettes to smoke less, transition to less harmful tobacco or nicotine products or quit nicotine use altogether, according to a press release.

Cabbacis’ patent portfolio includes 25 issued patents and various pending patent applications across the United States, Europe, China, Japan, South Korea, Canada, Australia, New Zealand, Mexico, Brazil and other countries. The company holds six U.S. patents.

December 29, 2022

PMI, Medicago Cut Ties After WHO Rejection

Philip Morris International and the health group Medicago have severed ties after the World Health Organization rejected Medicago’s Covid-19 vaccine, according to a tobacco control body.

Covifenz, the world’s first plant-based Covid-19 vaccine, was jointly developed by Medicago, which is owned by Mitsubishi Chemical, Philip Morris and Glaxo, according to Bloomberg. The Canadian government, which provided $173 million in funding for its development, has cleared it for use.

The government of Quebec previously said it wanted to help Medicago replace its shareholder PMI with another investor so that the biotech firm can distribute its Covifenz Covid-19 vaccine internationally.

“Tobacco corporations, vaccines and governments don’t mix well, and we applaud the expulsion of Philip Morris from the Medicago collaboration,” Les Hagen, the executive director of not-for-profit organization ASH Canada, said in a statement.

Medicago’s request for an emergency-use listing was denied earlier this year by the World Health Organization because of the links with tobacco industry.

Earlier this year, Medicago announced it would cut 62 jobs at its manufacturing facility in Durham, North Carolina, USA, which played a key role in producing the company’s tobacco plant-based Covid-19 vaccine.

December 26, 2022

Law Review Urges Action to Protect Youth

While Canada’s Tobacco and Vaping Products Act (TVPA) is making progress toward meeting the objectives it set out in relation to vaping, more works remains to be done, particularly in terms of protecting youth, according to the first review of the legislation, which was recently tabled in Parliament by Minister of Mental Health and Addiction and Associate Minister of Health Carolyn Bennett, reports Health Canada.

The review identifies areas for potential action, including examining access to vaping products by youth, communicating the potential benefits of vaping as a less harmful source of nicotine for people who smoke and completely switch to vaping as well as the health hazards, strengthening compliance and enforcement, and addressing scientific and product uncertainty to better understand the vaping product market and the health impacts of vaping.

“Vaping products offer the 3.8 million Canadians who smoke a less harmful source of nicotine than tobacco products and do help people to stop smoking,” said Bennett. “These products, however, are not without risk—particularly to youth and people who do not smoke cigarettes. This first legislative review of the Tobacco and Vaping Products Act is a valuable opportunity to take stock of the progress we’ve made to address youth vaping—but there is more to do. Our government will continue to work to put the right safeguards in place to protect young people from the harms of vaping and nicotine addiction.”

The TVPA was implemented in 2018 to respond to the increasing availability of vaping products in Canada and to help ensure that Canadians would be informed about and protected from the health hazards associated with vaping. It regulates the manufacture, sale, labeling and promotion of vaping products sold in Canada.

The TVPA includes a requirement for a legislative review three years after coming into force and every two years thereafter to provide a means to examine and respond to tobacco-related and/or vaping-related issues that may emerge over time.

The review was informed by a public consultation that ran from March 16, 2022, to April 27, 2022.

December 12, 2022

British Columbia Juul Litigation to Proceed

The Supreme Court of British Columbia has dismissed an application from Altria Group to stay or dismiss proceedings against the company in a class action lawsuit against Juul Labs, reports The Lawyer’s Daily. Altria owns 35 percent of Juul.

The claim alleges that Altria conspired with Juul in the sale of nicotine vaping devices to youth in particular with the goal “to convert them into smokers” in part through nicotine addiction.

The class action suit was initially filed in September 2019, shortly after Health Canada issued an advisory for vapers to “monitor themselves for symptoms of pulmonary illness … and to seek medical attention promptly if they have concerns about their health.”

“This is an important decision that ensures that Canadians are able to sue all the parties that they allege have harmed them,” said Daniel Bach, a partner in Siskinds, about the Supreme Court decision. “We look forward to litigating these issues against Altria on the merits.”

Juul has been pummeled by lawsuits and mounting restrictions on the production and sale of vaping products in recent years. The e-cigarette maker has suffered financially as a result.

Since 2019, Juul has halted all U.S. advertising, discontinued most of its flavors and attempted to rebrand itself as a product for older smokers who seek alternatives to cigarettes.

According to press reports, Juul has been preparing to file for Chapter 11 bankruptcy.

This was the second appeal by Altria in this class action that British Columbia courts have dismissed. In October 2021, the B.C. Court of Appeal dismissed an appeal to an order allowing cross-examination on its affidavits in the company’s jurisdictional challenge.

October 19, 2022

Kaival Launches PMI’s Veeba in Canada

Kaival Brands Innovations Group (KBI) announced the launch of Philip Morris International’s Veeba disposable e-cigarette in Canada.

In June, Kaival and PMI signed an agreement for the development and distribution of electronic nicotine-delivery system products in markets outside of the U.S.

“The agreement with Philip Morris Products was a remarkable accomplishment for the company, and now we have advanced to the next phase of international distribution with the actual launch of their custom branded product, Veeba,” said Eric Mosser, president and chief operating officer of Kaival Brands, in a statement.

“We are excited to support PMI’s efforts to provide a range of alternatives compared to cigarettes. The commercialization of Veeba complements PMI’s already strong smoke-free portfolio, providing adult smokers with an even broader range of usage, taste, price and technology options.”

The agreement licenses PMI to manufacture, promote, sell and distribute the Bidi Stick and any newly developed devices in certain markets outside of the United States, with potential royalties owed to KBI.

July 26, 2022

Quebec to Help Medicago Cut PMI Ties

The government of Quebec wants to help Medicago replace its shareholder Philip Morris International with another investor so that the biotech firm can distribute its Covifenz Covid-19 vaccine internationally, reports CTV News.

In February, Health Canada approved Covifenz, a tobacco plant-based coronavirus vaccination developed by Medicago and GlaxoSmithKline, for adults aged 18 to 64. In December 2021, the company said its two-dose vaccine was 71 percent effective in preventing Covid-19 infections, according to a large study that included several variants.

However, in May, the World Health Organization rejected Covifenz, citing Medicago’s firm’s links to PMI, which owns 21 percent of Medicago shares. Article 5.3 of the WHO Framework Convention on Tobacco Control obliges parties to ensure that their policies are protected “from commercial and other vested interests of the tobacco industry.”

The Canadian government has signed a contract to purchase up to 76 million doses of Covifenz. Canada had planned to donate any excess vaccines to low-income countries through the Covax vaccine-sharing alliance. Since the WHO has denied Medicago’s request, Canada will not be able to donate doses of Covifenz.

Quebec Economy Minister Pierre Fitzgibbon has been talking with Medicago’s other shareholder, Mitsubishi Tanabe Pharma, about the possibility of buying out PMI. Mitsubishi has asked the Quebec government for support so that Medicago’s vaccines “can receive a favorable reception from the WHO and be marketed on a large scale,” according to a recent entry in the Quebec Registry of Lobbyists.

Canadian health groups applauded the efforts to replace PMI as a major shareholder.

“Philip Morris’s involvement in Medicago is the main obstacle to widespread international distribution of the plant-based Covid-19 vaccine,” said Flory Doucas of the Quebec Coalition for Tobacco Control in a statement. “Medicago has previously signaled that alternative investors would help facilitate this outcome. Quebec’s intentions to buy out Philip Morris’s shares from Medicago is the logical path to the eventual approval for this vaccine by the World Health Organization.”

June 21, 2022

Canada Proposes Federal Vape Tax

The Canadian government has proposed the country’s first federal vape tax, which would take effect Oct. 1 if passed, according to Vaping360.

The tax applies only to nicotine-containing products, including pod-style and cartridge-style refills, disposable vapes and bottled e-liquids as well as nicotine base for DIY liquids. It does not apply to hardware that is sold without e-liquids. The tax also includes an option for Canadian provinces to add on their own, equally large, taxes.

Vaping products would see a tax of CAD1 ($0.97) per 2 mL for the first 10 mL of e-liquid in any sealed container and $1 per 10 mL for additional liquid in the same container. Sealed pods would be taxed separately at a minimum of $1 per pod.

Retailers would have until Jan. 1, 2023, to sell any untaxed stock they still have on Oct. 1 when the law would go into effect.

The tax is awaiting a vote by Parliament’s House of Commons, which is expected to take place either at the end of April or beginning of May.

April 8, 2022

Tag: Canada