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Tag: Kentucky

  • Kentucky to Issue Provisional Licenses for Tobacco Retailers

    Kentucky to Issue Provisional Licenses for Tobacco Retailers

    Kentucky will issue provisional state licenses to tobacco, nicotine, and vapor product retailers that apply for licensure with the Department of Alcoholic Beverage Control (ABC) before Jan. 1, 2026, allowing them to continue operating while their applications are under review. The provisional licenses will expire once ABC takes action on the full license applications. An emergency regulation filed on December 29 ensures applicants are not penalized during the transition period.

    The move follows the passage of Senate Bill 100, signed into law by Gov. Andy Beshear on March 24, which created a new licensing requirement for all tobacco, nicotine, and vapor product retailers in the state. ABC expects to issue more than 4,000 licenses by the end of 2025.

    Under S.B. 100, retailers are required to obtain an annual state license and are subject to stricter oversight, including unannounced compliance checks, higher fines, and potential loss of licensure or criminal penalties for violations. ABC has launched a new online licensing system and is urging any retailers that have not yet applied to do so before the January 1 deadline, noting that no provisional licenses will be issued after that date.

  • Kentucky Retailer License Bill Passes House

    Kentucky Retailer License Bill Passes House

    With Wednesday’s House vote of 82-11 on S.B. 100, Kentucky moved a step closer to forcing retailers who sell nicotine to have a license. The House made some changes to the bill that the Senate approved in February —that the Senate will have to vote on — but kept the licensing requirements laid out by Sen. Jimmy Higdon in place.

    Under the bill, Kentucky would license all retailers who sell tobacco and vape products, giving the Department of Alcoholic Beverage Control inspection and enforcement powers over them, similar to those it exercises over alcohol retailers. It would also fine retailers who sell nicotine products to minors and give half the money collected in fines to a youth prevention program.

  • Cresco Labs Making Mark in KY Cannabis Market

    Cresco Labs Making Mark in KY Cannabis Market

    Chicago-based Cresco Labs Inc. today (March 11) announced it received a management services agreement with a Tier 3 Cultivation License in Kentucky, allowing it to operate a cannabis cultivation facility with up to 25,000 square feet of canopy. It is only the second such license issued in the state.

    Cresco offers cannabis in all forms nationally under brands such as High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, and sells under its Sunnyside brand dispensaries.

    “The Cultivation License allows for the construction of a state-of-the-art cultivation facility with up to 25,000 square feet of canopy, enabling us to deliver the quality and scale we are known for,” said Charlie Bachtell, CEO of Cresco Labs. “We’ve spent the last two years focused on solidifying the core and increasing our free cash flow. Kentucky is our first of many opportunities to reinvest that free cash flow back into high ROIC growth initiatives as we continue expanding into new markets.”

    Launched on Jan. 1, 2025, Kentucky’s medical cannabis program allows for a maximum of 115,000 square feet of approved canopy space and 48 retail licenses. Industry analysts predict the state’s market will generate $135 million in revenue by 2026 and grow to $228 million by 2028.

  • Vape Group Files to Halt KY E-Cigarette Law

    Vape Group Files to Halt KY E-Cigarette Law

    Three vapor groups filed an injunction Friday (Feb. 21) urging the Sixth Circuit to halt enforcement of Kentucky’s new H.B. 11 law regulating vaping products while their appeal plays out. The Vapor Technology Association, E-Town Marketing & Distributing LLC and Legendary Vapes Inc. brought an action in Kentucky federal court in December alleging that H.B. 11 was preempted by the federal Food, Drug and Cosmetic Act and that Kentucky was attempting to usurp regulatory authority that belonged to the U.S. Food and Drug Administration, wrote Sam Reisman for Law360.

    The plaintiffs said that a lower district court judge erred in dismissing their suit challenging Kentucky’s law and renewed at the appellate level their effort to block the policy’s implementation, claiming it will cause them irreparable damage.

    “HB 11 continues to wreak havoc on vapor-product wholesalers and retailers in the Commonwealth,” the motion said. “Compliance with HB 11 requires removal of most (and nearly all of the most popular) products from the shelf on threat of ever-mounting penalties imposed illegally by the Commonwealth under a preempted State law.

    “HB 11 interferes with FDA’s exclusive enforcement authority and discretion by allowing the Commonwealth of Kentucky to exercise that authority,” Friday’s motion said. “This is the epitome of conflict preemption.”

    U.S. District Judge Karen K. Caldwell dismissed the action for lack of standing in January, without ruling on the plaintiffs’ bid for a temporary restraining order and preliminary injunction, according to Reisman. The plaintiffs told the Sixth Circuit on Friday that it would be “impracticable” to seek an injunction from the district court, given that the court had already tossed the suit.

    The vaping interests alleged that they were likely to succeed on the merits of their preemption challenge to H.B. 11, which bans the sale of “unauthorized” e-cigarettes in Kentucky but pegs its definition of what is “authorized” to the FDA standards.

  • PMI to Further Expand U.S. Zyn Production

    PMI to Further Expand U.S. Zyn Production

    Photo: PMI

    Philip Morris International’s Swedish Match affiliate will invest $232 million to expand the production capacity of its Owensboro, Kentucky, USA, manufacturing facility, which produces the popular Zyn nicotine pouches.

    The expansion is expected to create an additional 450 direct jobs with an ongoing annual economic impact of $277 million and 410 indirect jobs for the Commonwealth of Kentucky.

    “Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region,” said Kentucky Governor Andy Beshear in a statement.

    Construction of the expanded facility is already underway, including adding more production space. Progressive production increases are expected during the project, which is targeted for completion by the second quarter of 2025. The construction phase alone is expected to create nearly 2,800 jobs and have an economic impact of about $414 million.

    In addition to facility expansion and ongoing optimization of processes to increase capacity progressively over the coming quarters, the Kentucky facility will move from a 24-hour, five-days-per-week schedule to a 24-hour, seven-days-per-week schedule to boost production, starting in the fourth quarter of this year.

    The Swedish Match Owensboro facility currently has about 1,100 employees. The ongoing expansion of the facility in Kentucky is expected to provide around 900 million cans of capacity by 2025.

    In July, PMI announced an investment of $600 million over the next two years through its U.S. affiliate to open a nicotine pouch manufacturing facility in Aurora, Colorado. The Aurora facility and Owensboro expansion are designed to provide the capacity needed in the near term and midterm to meet the ferocious U.S. demand for Zyn.