Tag: Featured

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IQOS Rollout Slowed by Covid-19 Pandemic

Bonnie Herzog
Tobacco and vapor product analyst Bonnie Herzog of Goldman Sachs cites the Covid-19 pandemic as the main reason Philip Morris International (PMI) and Altria have slowed down the national launch of IQOS.
In March, Philip Morris USA closed its Atlanta, Georgia, and Richmond, Virginia, IQOS stores temporarily, paused its IQOS inperson marketing efforts and delayed the launch of IQOS in Charlotte, North Carolina, due to Covid-19 concerns. While the U.S. Food and Drug Administration (FDA) granted modified-risk tobacco product (MRTP) status to IQOS in July, sales of IQOS have not been strong during the pandemic.
“It has been more of a slow rollout and that has a lot to do with the fact that the technology that has been approved in the U.S. is older technology of IQOS,” said Herzog. “Philip Morris has applied to get approval of 3.0, but that’s still pending. We’re optimistic, assuming they can get approval from the FDA for that.” Herzog projects that by 2025, IQOS could account for as much as 12.2 percent of Altria’s volumes.”
October 2, 2020
Puff Bar Owner Sues Over Fake Products

Photo: DS Technology Licensing
DS Technology Licensing, the owner of registered trademarks associated with the Puff Bar vapor device, and Puff Inc., an authorized U.S. distributor, has filed a lawsuit in Los Angeles County Superior Court against over 20 Chinese and American companies accused of distributing counterfeit vaping devices.
The defendants include international manufacturer and distributor CACUQ, U.S. distributors, e-commerce companies, and brick-and-mortar retail stores. Plaintiffs are represented by the law firm of Gallinger Law.
The lawsuit addresses both counterfeit Puff Bar vapor devices as well as knockoff products identified as Puff Smart, Puff Mini, Puff Stig and Airis Puff and seeks $50 million in restitutionary damages and $25 million in punitive damages.
“Defendants in the lawsuit have infringed on the famous Puff and Puff Bar marks by introducing competing devices which use the stylized “Puff” associated with Puff Bar Vapor Devices as well as by openly selling fake or counterfeit Puff Bar vapor devices,” DS Technology Licensing wrote in a statement.
“Defendants are believed to be only a small number of the violators, as the anti-counterfeit verification system at puffbar.com has identified thousands of retail stores at which consumers bought devices which failed the check.”
DS Technology Licensing promised award to those with information that leads to the seizure of counterfeit goods.
October 2, 2020
EU Opposes Danish Flavor Ban

Photo: Sharon Ang from Pixabay
The European Commission has opposed a ban on vaping flavors put forward by the Danish government, according to the U.K. Vaping Industry Association (UKVIA).
“It is a victory both for vaping and common sense,” said UKVIA Director John Dunne said in a statement.
John Dunne
Denmark wants to introduce a flavor ban on both nicotine and non-nicotine containing e-liquids, where only tobacco and menthol flavors will be permitted. According to the Danish Vapers Association (DADAFO), the proposed ban would have affected between 85 percent and 90 percent of adult vapers in Denmark with the potential of driving up to 70,000 Danish ex-smokers back to cigarettes. The move would have also forced 90 percent of vape shops to close, DADAFO said.
“Flavors play a hugely important role in encouraging smokers to switch to vaping, a much less harmful product,” said Dunne. “Crucially, vape flavors provide choices for ex-smokers to ensure they do not relapse.”
“The effect of banning flavored liquids on deterring adult vapers from using vape products to help them quit or reduce their smoking was acknowledged by Public Health England earlier this year in its annual vaping evidence review. The review also stated that a ban could also push current adult vapers towards illicit products.”
According to the European Tobacco Harm Reduction Advocates, the Danish Ministry of Health sent a notification of this to the European Commission on April 17 with a standstill period of three months during which the Commission had to comment whether it believes that the Danish government can legally amend the existing laws as proposed.
October 2, 2020
Taat Releases Pack Designs

Photo: Taat Lifestyle & Wellness
Taat Lifestyle & Wellness has released provisional new pack designs for its Beyond Tobacco cigarettes.
Key elements include greater dominance of colors commonly associated with certain varieties of combustible products (e.g., green for menthol), centered placement of text and graphic elements for a more “balanced” appearance, and prominence of elements that define Taat’s brand to include “Beyond Tobacco.”
“Packaging and trade dress are arguably the backbone of any consumer packaged good [CPG] when it comes to building preference and brand loyalty,” said Taat CEO Setti Coscarella, in a press note.
“While I am entirely confident that Beyond Tobacco will make its mark among current legal-aged smokers of tobacco cigarettes on its merits as an actual product, cultivating long-term loyalty and preference through a visibly recognizable trade dress to include packaging is a fundamental component of the success of any CPG product.”
Consumer feedback regarding this provisional design will be factored into the final iteration of the product. Taat plans to launch Beyond Tobacco cigarettes in the United States in the fourth quarter of 2020.

October 2, 2020
States Ranked on Vapor Regulations
The Consumer Choice Center (CCC) has published an index ranking each U.S. state on the consumer-friendliness of its vapor regulations.
Rankings are assigned based on a legislative actions, including restrictions, taxation, and online sales prohibitions.
According to the index, California is the “worst state for vaping.” New York, California, New Jersey, Massachusetts and Rhode Island are also among the least consumer-friendly states. Virginia, Colorado, Texas and Maryland each received “A” scores.
“The worst states … are far behind all the other states because of flavor bans, exorbitant taxation on vaping products, and restrictions on online sales,” said David Clement, North American affairs manager and deputy director at the CCC. “Our research indicates these states go above and beyond to deter adult smokers from switching to vaping, which could vastly improve and prolong their lives.”
“What lawmakers should note is that a number of states are providing a positive framework of regulation for vaping that boosts consumer choice while contributing to public health by encouraging smoking cessation,” said Yaël Ossowski, who is also North American affairs manager and deputy director at the CCC.
“Excessive flavor bans, taxes, and prohibitions on online commerce grow the black-market sector and harm consumers who want less harmful alternatives to smoking. If states want to innovate in 2020 and provide adult smokers with an alternative that is less harmful, they should look to reform their state laws to better accommodate this new technology that is helping millions.”

The report shows that 25 states allow flavored vaping products with no additional taxes and no shipping restrictions. Twenty states have previous flavor bans, some taxes and a few shipping restrictions. There are five states that have partial flavor bans, high taxes and shipping restrictions.
The center stated that the focus is on state regulation of vaping, “as it plays a big part in their availability to adult consumers who want to switch away from combustible tobacco.”
The weighted scoring system analyzes additional flavor restrictions, taxes and the ability to sell vaping products online. Regulations are assessed on stringency in addition to Food and Drug Administration regulations.
States that received between 0 and 10 points received an “F” grade, between 11 and 20 points is “C” and states with points between 21 and 30 received an “A” grade.
October 2, 2020
Swisher Consolidates Smokeless Portfolio
Swisher has consolidated its broad smokeless tobacco portfolio under Fat Lip Brands. With a mix of classic brands and modern-day favorites in moist snuff, chewing tobacco and dry snuff, the creation of Fat Lip Brands is part of Swisher’s efforts to align its businesses and brands to better serve its wholesale and retail customers as well as its adult consumers. Through this alignment, Fat Lip Brands will enhance its focus within the smokeless category and allow for more effective allocation of resources and customer service efforts, according to the company.
Fat Lip Brands is well positioned among Swisher’s five strategic businesses that also include Swisher Sweets Cigar Co. (large and little/filtered cigars), Drew Estate (premium cigars), Hempire (hemp accessories) and Rogue Holdings (modern oral nicotine). Each business provides focused category expertise and product knowledge under a renewed purpose for the broader company. Through Swisher’s strategic businesses, trade partners will have access to the growth strategies and product innovations that drive expanded success.
Based in Wheeling, West Virginia, USA, Fat Lip Brands brings a 141-year tradition in smokeless tobacco together under a one portfolio covering all customers’ needs in the moist snuff, chew and dry snuff categories. “With classic brands like Mail Pouch, Chattanooga Chew, Bowie, Navy and Railroad Mills offered alongside everyday best sellers like Kayak, Creek and Starr, Fat Lip Brands serves the modern lifestyle of adult consumers while staying grounded in a tradition of quality and affordability,” Swisher wrote in a press note.
October 2, 2020
Republic Buys French E-Liquid Maker

Photo: Manfred Schindler from Pixabay
Republic Technologies International (RTI) has bought Innovative – So Good to expand the scope of its business. The acquisition bolsters RTI’s presence in the e-cigarette segment and establishes the company as a major player in premium certified French origin e-liquids.
Based in Angouleme, France, Innovative – So Good manufacturers e-liquids and distributes equipment exclusively available through the tobacconists’ network.
“So Good is a recognized brand and customers appreciate the high quality of its liquids,” said RTI Managing Director Olivier Partouche, who oversaw the purchase. “Thanks to the work of Cedric Lacouture and his teams, it has become a major premium brand available through the tobacconist network. The complementary nature of our E-CG liquids was obvious to us and this merger will help us further expand our product offering and enable us to support tobacconists as they grow this new segment.”
“Our joining forces with Republic Technologies through the E-CG brand is excellent news for our customers,” said Lacouture, So Good’s founder. “In the short term, they’ll get access to a comprehensive offering of e-liquids, e-cigarettes and items for smokers. Of all the acquisition proposals that we received, [RTI’s] was the most persuasive as far as So Good’s future and its development are concerned.”
For more than 150 years, the Republic Technologies group has been developing and manufacturing cigarette paper under the OCB, Job and Zig-Zag brands. Building on its industrial experience, the group has been selling e-liquids and vaping accessories under the E-CG brand since 2015.
October 1, 2020
India Bans Per-Stick Bidi and Cigarette Sales

Photo: Denis Shevyakov
The state health department in India has banned the sale of loose cigarettes and bidis to help stop the spread of Covid-19 and to discourage smoking, reports Mumbai Mirror.

Vendors will have to sell full packs rather than single sticks. The police department and local self-government bodies are tasked with enforcing the ban.

Tobacco laws state that 85 percent of tobacco packaging must be health warnings, but when consumers are buying single sticks, they are not seeing these warnings. Officials are hoping requiring the sale of whole packs will discourage smokers; many tobacco consumers in India cannot afford whole packs.
September 30, 2020
Modern Oral Less Toxic Than Other Products

Emma Cheung (Photo: BAT)
British American Tobacco (BAT) has published a new study in Food and Chemical Toxicology showing that modern oral products (MOPs) elicit lower toxicity responses than traditional tobacco products.

Velo, one of BAT’s nicotine pouch products, was compared with a traditional cigarette as well as a Swedish-style snus pouch and found to be “less biologically active than cigarette smoke and snus, even at greater concentrations of nicotine, across a range of tests,” according to a company press release. “In many cases, Velo failed to elicit a biological response at all, supporting the view that MOPs are likely to be less risky than traditional cigarettes and Swedish-style snus for users who switch completely.”

“Velo was found to be less biologically active than cigarette smoke in certain assays, which is very encouraging,” said Emma Cheung, a preclinical scientist at BAT, in a statement. “This study helps to support the reduced-risk potential of MOPs. Our scientists will continue to build evidence to support our new category products.”
September 30, 2020
PMI to Discuss Workplace Equality

Photo: Truthseeker08 | PixaBay
Philip Morris International (PMI) will participate in several global forums focused on equality in the workplace. Starting today, members of PMI’s senior management team—including Chief Diversity Officer Silke Muenster—will detail the steps PMI is taking to further diversify its workplace and explain how fostering a culture built on broader perspectives increases creativity and productivity, ultimately driving innovation and consumer-centricity.

Forums include The Hill’s “Century of the Woman,” Financial Times LIVE’s “Accelerating Equality,” Financial Times LIVE’s “Women at the Top U.K.,” Women in Technology World Series, and Financial Times LIVE’s “Women at the Top USA.”
September 30, 2020