Wild Bill’s Tobacco, which has 240 retail stores in Michigan, Indiana, Ohio, and West Virginia, announced the opening of its first store in Missouri. The 1,360-square-foot store is located in Raymore, and according to the company will have one of the largest walk-in humidors in the state.
Headquartered in Troy, Michigan, and owned by LAMB Ventures, Wild Bill’s recently celebrated its 30th anniversary. The company said it has been anxious to get into the Missouri market and plans to expand around the state.
“We’re thrilled to bring the Wild Bill’s experience to the Kansas City market, introducing our premium selection and unmatched customer service to a new community,” stated Jon Welzel, Chief Marketing Officer at Wild Bill’s Tobacco. “Raymore is the perfect place to begin our journey in Missouri, and we’re excited to become a part of this vibrant community, with plans to expand in the area for years to come.”
Tesco, the UK’s largest retailer, delivered its “biggest ever” Christmas performance by lowering festive prices and attracting shoppers from competitors. Tesco’s wholesaler division, Booker, faced challenges with a 2.6% decline in Q3 sales, but improved during Christmas with a 1.4% rise, despite weaknesses in tobacco sales and the fast-food market serviced by Best Food Logistics.
While Christmas sales were strong, Tesco’s like-for-like growth over the broader third quarter was slower, with a 2.8% increase.
Looking ahead, Tesco expects full-year adjusted group operating profits to reach £2.9 billion (US$ 3.57bn).
The U.S. We Card program is encouraging retailers to make employee training a top priority in promoting responsible retailing of age restricted products.
In addition to educating staff, retailers should update in-store signage, gauge employee performance through “mystery shopping,” and compare their store practices against We Card’s Guide to Best Practices, according to the organization.
“There are lots of changes in laws, regulations and age restricted products sold at retail,” said We Card President Doug Anderson in a statement. “In September, we kick off Awareness Month with a focus on elements that help reduce underage access: effective employee training that ensures retail employees are trained-and-confident and ready to deny underage purchase attempts of tobacco, vaping and nicotine pouch products.”
To ensure compliance, the U.S. Food and Drug Administration inspects up to 9,000 stores per month. Simultaneously, state government authorities also measure retailers’ compliance with state youth access laws.
“Keeping tobacco, vaping products, nicotine pouches and all age-restricted products out of the hands of everyone under 21 years old is our top priority,” said Lyle Beckwith, senior vice president of government relations for the National Association of Convenience Stores and a We Card founding board member.
“A well-trained staff helps stores establish a reputation as a responsible retailer in their communities.”
This month, Stop & Shop stores will discontinue the sale of all tobacco products, aligning with other major chains that have already ceased cigarette sales.
The grocery retailer with 360 stores across Massachusetts, Rhode Island, Connecticut, New York, and New Jersey plans to end sales of all tobacco products at all stores by August 31 as a part of the brand’s commitment to community wellness. The changes are part of its “dedication to community wellness” and will discontinue the sale of all cigarettes and tobacco products on Saturday, August 31.
“Our responsibility as a grocer goes far beyond our aisles, and we are committed to taking bold steps to help our associates, customers, and communities work towards better health outcomes,” said Gordon Reid, Stop & Shop president, in a statement, according to a press release.
Public health advocates have long urged retailers to stop selling tobacco products, and some cities and states have also banned tobacco sales in pharmacies. The American Cancer Society responded that it was “pleased to partner” with Stop & Shop to end sales.
“This is a step in the right direction toward ending Big Tobacco’s influence on kids, and we know even more can be done to reduce the toll of tobacco in our communities,” said Karen Knudsen, CEO of the American Cancer Society and the American Cancer Society Cancer Action Network, in the statement. “We urge state lawmakers to prioritize tobacco control program funding so that those inspired to quit by this effort have the resources they need to help them succeed.”
Previously, Walmart in 2022 announced it would stop selling cigarettes at some of its US stores. In 2014, CVS stopped selling tobacco, saying it was “inconsistent with our purpose” as a health care provider. Target ended tobacco sales in 1996.
The Cigarette Store, which operates as Smoker Friendly, announced on Monday that Dan Gallagher will be its new president, effective April 17.
Gallagher has worked for the fuel and tobacco retailer since it was founded in 1991 and has been its executive vice president and chief operating officer since 2012. He’ll continue in those roles as he takes on the additional title of president, according to a press release.
Gallagher is replacing his brother Terry Gallagher Jr. as the president of Smoker Friendly. Terry Gallagher will remain the CEO and chairman of the board of the family-owned company.
Terry Gallagher Jr.
“Dan has been instrumental in the growth of Smoker Friendly since its inception and key in establishing the great culture we have in this company,” Terry Gallagher Jr. said in the release. “Those of you who have worked closely with Dan know he is very deserving of this role and extremely capable of leading this company.”
Smoker Friendly’s change at the president level comes during a busy period for the company, which is coming off a 54-store acquisition in March. Those locations, formerly Bob’s Discount Tobacco Shops in Indiana, are being rebranded to Smoker Friendly stores.
Boulder, Colorado-based Smoker Friendly owns and operates 342 stores across 13 states. The Cigarette Store is the largest tobacco store retailer in the U.S., operating a mix of tobacco stores, cigar lounges, liquor stores, and fueling locations under the Smoker Friendly, Tobacco Depot, Smoke ’N Go, Havana Manor, and Gasamat banners.
The U.S. Food and Drug Administration has again issued warning letters to several small business owners for selling flavored disposable vaping products.
The regulatory agency issued letters to 14 online businesses for selling unauthorized e-cigarette products. The warning letters cite the sale of disposable e-cigarette products marketed under brand names, including Elf Bar/EB Design, Lava Plus, Funky Republic/Funky Lands, Lost Mary, Cali Bars, Cali Plus, and Kangvape.
“These warning letters were informed by FDA’s ongoing monitoring of multiple surveillance systems to identify products that are popular among youth or have youth appeal, an agency press release states. “Findings from the 2023 National Youth Tobacco Survey found that more than 50 percent of youth who use e-cigarettes reported using the disposable e-cigarette brand Elf Bar; in 2023, the manufacturer of Elf Bar began marketing the product under the name EB Design.”
In addition, the brands Lava Plus, Funky Republic/Funky Lands, Kangvape, Cali, and Breeze were identified as popular or youth-appealing by the agency following a review of retail sales data and emerging internal data from a survey among youth, according to the agency.
Retailers receiving warning letters sold or distributed e-cigarette products in the United States that lack marketing authorization from the FDA violate the Federal Food, Drug, and Cosmetic Act.
Warning letter recipients are given 15 working days to respond with the steps they will take to correct the violation and to prevent future violations. Failure to promptly correct the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties.
As of Jan. 30, 2024, FDA issued more than 440 warning letters and 88 CMPs to retailers for the sale of illegal e-cigarettes, including through a series of nationwide inspection efforts of brick-and-mortar retailers, according to the release.
In a press release, the agency stated that it had previously issued each retailer a warning letter for their sale of unauthorized tobacco products. However, follow-up inspections revealed that the retailers had failed to correct the violations.
The agency now seeks the maximum penalty of $20,678 from each retailer.
The U.S. Food and Drug Administration has issued complaints for civil money penalties (CMPs) against 21 brick-and-mortar retailers for selling unauthorized Esco Bars e-cigarettes.
In a press release, the agency stated that it had previously issued each retailer a warning letter for their sale of unauthorized tobacco products. However, follow-up inspections revealed that the retailers had failed to correct the violations.
The agency now seeks the maximum penalty of $20,678 from each retailer.
The complaints announced today represent the first set of CMPs FDA has filed for the sale of unauthorized Esco Bars e-cigarettes. “These retailers were duly warned of what could happen if they continued selling these unauthorized e-cigarettes,” said Brian King, director of the FDA’s Center for Tobacco Products (CTP). “They should have acted responsibly to correct the violations, but they chose not to do so and now must face the consequences of that decision. FDA won’t sit back and tolerate inaction to comply with the law.”
Currently, $20,678 is the maximum civil money penalty amount FDA can seek for a single violation from each retailer, consistent with similar CMPs sought against retailers for the sale of unauthorized Elf Bar products in Sept., Nov., and Dec. of 2023.
The retailers can pay the penalty, enter into a settlement agreement based on mitigation factors, request an extension of time to file an answer to the complaint, or file an answer and request a hearing. Retailers that do not take action within 30 days after receiving a complaint risk a default order imposing the full penalty amount, according to the release.
“Today’s CMP actions are just the latest in the continued, comprehensive push by FDA to take action across the supply chain to remove unauthorized e-cigarettes, particularly those that are popular among youth, from the marketplace,” the release states. “As of Jan. 30, 2024, FDA has issued more than 440 warning letters and 88 CMPs to retailers, including brick and mortar and online retailers, for selling unauthorized tobacco products.
“In addition to actions involving retailers, FDA has issued more than 660 warning letters to firms for illegally manufacturing and/or distributing unauthorized new tobacco products, including e-cigarettes.
“The agency has also filed civil money penalty complaints against 48 e-cigarette firms for manufacturing unauthorized products and sought injunctions in coordination with the U.S. Department of Justice against seven manufacturers of unauthorized e-cigarette products.”
“The more things change, the more they stay the same,” is an expression that has been around for almost two centuries, and it speaks to the fact that the small picture(s) of life may change, but the larger one does not. The vape industry and all the challenges and changes that have happened in the past decade are totally contrary to that famous saying.
A decade ago, the vape industry was the epidemy of the Wild, Wild West, full of vape shops springing up on every corner, and any/everyone creating e-liquids in their bathtubs at home. Regulation and competition changed all that and brought some semblance of “orderliness” to the market, but as state and federal regulations bombarded the industry, and with the FDA creating onerous and unattainable guidelines, the vape space has truly become one of survival.
I recently attended a vape event in Phoenix which brought together several dozen top manufacturers, distributors, and buyers, and universally everyone lamented the same concern: business is down.
Why is business down?
The reasons are many, including strict regulations, and now, even more enforcement of those regulations, but overall, the cause was much simpler. The huge COVID-19 rebound in 2020-22 put more money in consumers’ pockets and more time on their hands. Those issues combined created an artificial bubble that many thought would last. But time has passed. Add in the inflation that has pushed up food and other cost of living expenses, and some former necessities are now becoming unaffordable luxuries.
“It’s a balancing act between the addictive nature of some nicotine products and the limitations of buyer’s budgets,” said Jamie Reed with Simple Vape Supply from Orange County California. “I’ve been in the industry for over ten years, and this is evolution in its purest form and based around ’survival of the fittest.’”
Simple manufactures and distributes over 100 different assortments of nicotine cartridges, including disposables, including various iterations of CBD, Delta-8 and Kratom.
“It’s interesting,” Reed added. “When I got hired, I was told that there was an ‘expiration date,’ and we all knew that this industry might not last, and that the cream would rise (to the top). We planned to be one of those surviving companies, and we’ve been able to adapt to the times.”
Her company, along with many that are still around, were mostly run by rebels, radicals, and envelope pushers; and many have in fact changed accordingly, but some have merely learned how to “play the game” and outwardly appear to be toeing the line, but the reality may be different.
“We were aware that the COVID blip was a one-time event. People were home, they had government money to spend, and no one was checking in on them or requiring any urine tests. The Delta (8,10) boom really added to that, and everyone jumped on that bandwagon,” she said excitedly.
That line of CBD was an example of how the industry has and continues to push back. The FDA says you can’t do this, so the industry says, “F-you, then we’ll do that.”
With regulation eliminating or reducing product selection, almost any industry will do the same thing: adapt; repurpose, or reposition.
Of the dozens of people I spoke with at the event, the numbers (from shop owners and manufacturers) were pretty consistent, and most of them were down 20 to 30 percent. Many were saying that purchase sizes were lower than normal and a typical ten-thousand-dollar order was now half that. They saw some shops closing, but most were working on smaller revenues.
Manager J-K Thorne holds some of the flavored products that are no longer available at Wild Impulse vape shop. (Shane Hennessey/CBC)
Meanwhile, on the other side of the equation, vape liquid manufacturers who are trying to “play the game” right and submitting premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration are frustrated at the amount of time it takes and how much money is being thrown into a (seemingly) dark hole.
I spoke with one of the owners of a large vape manufacturing business and distribution company in Idaho, and he shared some facts and figures about their process of trying to make their products “legal.” Legal, in the eyes of the FDA, has caused his company to squander over $5 million in the past few years trying to get authorization.
Mike Larsen is a detailed and focused vape guy who has been in the industry for over a decade and is with Lotus Vaping Technology, which started in 2011. As a partner and director of sales, he is on the front line of everything the company does to stay legal and compliant and is riding the roller coaster ride on a daily basis.
“Disposables have really changed the game,” he said, “and they have reduced the role of vape shops where people used to come for education and guidance. Consolidations and closures have also reduced the shop numbers by 30 to 40 percent, and now you have larger conglomerates doing the work of the multitude of shops.”
We spoke about a possible flavor ban nationally, and he said he was skeptical.
“The PMTA process has already reduced or eliminated flavors, so it may not be necessary to go to that length. There have been between six and seven million submissions by thousands of companies, and so far, just 23 have been approved. I know of a few companies that submitted over a million applications themselves. And here’s the irony: everyone approved has been a Big Tobacco company, and they make up just a fraction of the total vaping market.”
The second irony on top of that, is that those so-called approved products are ones that no one wants.
We talked about whether those approvals were fair or were the result of favoritism and bias, and he smiled since we both knew the answer.
“When you look at the PMTA process and the rigid requirements, it seems pretty obvious that they were written to the advantage of the larger, established companies, and the “small guy” had very little chance in this skewed game. You can’t even budget for something like this,” he continued. “The original filing costs over a million dollars, and I know several companies that have put another ten million in, only to get denied. Who has deep pockets like that? In 2016 I could have named over 150 liquid companies doing good business; today I can name about three dozen.”
And that is why the number of companies manufacturing tobacco and vape products is half what it was and is getting smaller every year. The FDA changes the rules of the game continually.
“There’s something happening here, but what it is ain’t exactly clear,” is the beginning line of a song that speaks to changes going on in society. That song by Buffalo Springfield may have nothing to do with vape, but the message says the same thing: there is something happening here although it may be clearer than we realize. We all knew this would happen; it was predicted a decade ago.
In the vape space, the more things change…the more things change.
Norm Bour is the founder of VapeMentors and works with vape businesses worldwide. He can be reached at norm@VapeMentors.com.
The withdrawal of European and American tobacco manufacturers and the gradual reduction of foreign e-cigarette brands doing business in Russia due to its war with Ukraine has allowed for the growth of Chinese e-cigarettes in Russia.
As Russia’s tobacco industry relies heavily on the support and investment of foreign brands, the withdrawal of international tobacco companies will cause a large shortage in the Russian tobacco market, which will lead to a sharp increase in the price of tobacco products sold in Russia, according to iGeekPhone.
By the end of 2021, there were more than 5,000 stores selling e-cigarettes in Russia, including more than 1,100 in the Moscow region.
According to real estate platform DNA REALTY, the number of tobacco shops in Russia grew by at least 20 percent in 2022, with the bulk of their profits coming from e-cigarette sales.
BAT announced it will withdraw from the Russian and Belarusian tobacco markets in 2023. Philip Morris International (PMI) and its subsidiary Fimo International, are also considering retaining their business in Russia because Russia is the seventh-largest tobacco market for PMI.
Japan Tobacco suspended investments in Russia and Imperial Brands transferred its Russian operations to a successor in Russia.
“E-cigarettes have great potential as alternatives to the tobacco market in Russia, where e-cigarette consumers account for 6.8 percent of the total number of smokers,” the article states. “After the United States and Europe, Russia is the world’s third-largest importer of electronic nicotine delivery systems (ENDS).
“China accounts for 90 percent of the global market. In 2021, China’s exports to Russia reached 82.5 billion rubles. This year it could increase by 35 percent to 111 billion rubles.”
