Tag: UK

  • UK Generational Smoking Ban Clears First Hurdle

    UK Generational Smoking Ban Clears First Hurdle

    TR Archive

    A landmark bill in the United Kingdom to ban its younger generation from smoking has cleared its first hurdle in the House of Commons.

    If it becomes law, the legislation, backed by a 415 to 47 vote, would prevent anyone born after January 1, 2009, from buying tobacco.

    Before then, the bill must go through further parliamentary stages, with MPs able to suggest amendments to any aspects they don’t like.

    The legislation includes powers to introduce a licensing scheme for retailers to sell tobacco, vape, and nicotine products in England, Wales, and Northern Ireland.

    Other proposed measures include a total ban on vaping product advertising and sponsorship, with a possible ban on the sale of sweet vape flavors, subject to consultation.

    While the numbers indicate large cross-party support, there was strong criticism from Conservative, Liberal Democrat, and Reform UK MPs, who raised concerns about “civil liberties.”

    The division list showed Tory leader Kemi Badenoch voted against the measure, having previously said “people born a day apart will have permanently different rights,” reports Sky News.

    Former home secretary Suella Braverman, shadow immigration minister Robert Jenrick, and Sir Iain Duncan Smith were among the other high-profile Conservatives who didn’t back the bill.

    While most Liberal Democrats did vote to support the bill, the party’s health spokeswoman Helen Morgan said: “The introduction of a phased smoking ban is problematic and not because Liberal Democrats want to see people smoke themselves into an early grave – far from it – but because it raises issues of practicality and raises issues of civil liberties.”

  • U.K. County Installs Vape Waste Bins for Recycling

    U.K. County Installs Vape Waste Bins for Recycling

    In North Yorkshire County in the United Kingdom, vape recycling bins have been installed at all 20 household waste recycling centers to prevent vapes from ending up in curbside bins.

    Materials used in single-use vapes can harm the environment and must be disposed of separately.

    Once collected at the recycling centers, they are transported to the recycling facility to be dismantled, and the lithium-ion battery is removed for processing while the metals and plastics are recycled.

    Lithium-ion batteries can cause fires if discarded in curbside recycling or waste bins. These batteries cause most fires in the waste collection and recycling industry.

    “This exciting new initiative has the aim of ensuring that people who use vape devices know how to dispose of them in the right way,” said the county’s executive member for waste services, Cllr Greg White. “Vapes are not safe to be recycled or disposed of in curbside bins or boxes at home. One incorrectly discarded vape could cause huge damage or serious injury.

    “In August, we also introduced coffee pod bins at our recycling centers as we aim to continue expanding what we accept at our recycling centers. These initiatives demonstrate our commitment to responsible recycling and reducing our carbon footprint.”

    Research released this year from Material Focus found that, in the U.K., the public is buying 7.7 million single-use vapes per week, which has doubled compared to 2022.

    People are also throwing away 5 million single-use vapes per week, or eight per second, which has quadrupled compared to 2022.

  • Plxsur Revenues Surpass $1 Billion

    Plxsur Revenues Surpass $1 Billion

    By Timothy S. Donahue

    That didn’t take very long. The global vaping company Plxsur reached its goal of reaching $1 billion in consolidated revenues from its partners in just two years. The company has now successfully partnered with 12 of the world’s leading vaping companies to form what may be the largest and fastest-growing group of independent vaping companies in the world. According to Nigel Hardy, CEO and founder of Plxsur, the company accomplished this with a focus on compliance, governance and reporting, with responsibility at its core.

    “We believe having a portfolio of multiple brands is crucial for building a successful reduced-risk product (RRP) business at scale. Our retail sales across the group reflect the impact of Plxsur, which supports adult smokers who have switched to vaping,” explains Hardy. “We have sold products to about 4 million consumers, with retail sales by value of units sold at $1.835 billion. Additionally, our three North Star owned brands, Salt, Allo, and Flavour Beast, are expected to generate retail sales of more than $400 million in 2024.”

    Plxsur also has 10 e-liquid manufacturing facilities in six different markets. With that comes the quality management systems to ensure the quality of the raw materials that are coming in and what’s going out. It’s not only about quality control (QC), but also about quality assurance. All e-liquids are manufactured in a minimum ISO 9001-certified facility. Plxsur’s QC program ensures that all products manufactured and distributed meet or exceed all regulatory and legislative requirements in the markets where the products are produced.

    ISO 9001 is an international standard specifying quality management system requirements. Organizations use it to demonstrate their ability to consistently provide products and services that meet customer and regulatory requirements. Plxsur only produces its brands of e-liquids. The company does not do third-party manufacturing because the company’s focus is on its products.

    Plxsur leadership says its partners have a combined market share representing an estimated 10 percent of the global $19.34 billion vaping market. Hardy said the company is targeting a 20 percent market share in the next five years. The companies include Hale Vaping (Ireland), UEG Holland (Netherlands), DampShop (Belgium), Pro Vape (Latvia), Puff Store (Italy), Nobacco (Greece), Ritchy Group (Czech Republic), Vape Empire (Malaysia), Pacific Smoke (Canada) and CK Complex (Poland).

    “The past two years have seen a huge amount of financial and operational progress for Plxsur, and we have grown to become the world’s largest and fastest-growing group of independent vaping companies with consolidated revenues of over $1 billion,” said Hardy.

    In 2021, Plxsur was founded by David Newns, Charlie Yates, and Nigel Hardy. The three entrepreneurs shared a vision for the vaping industry and discussed how they could work together to achieve their goals. They believed the key to success was respecting and supporting entrepreneurship while empowering local management teams. They planned to create a global network of independent vaping companies that were both the largest and the most responsible in the industry.

    Plxsur, under Hardy’s leadership, believes in improving the businesses it brings on board by focusing on three key aspects of business strategy: governance, compliance, and reporting. Compliance involves adhering to various rules and regulations in the countries and communities where Plxsur businesses operate. This includes regulatory, communication, and marketing compliance, as well as legal compliance related to finance and jurisdiction.

    “We’re at a very important and exciting stage in our journey. The companies in that group are not only the best at what they do in their respective markets, but importantly, they share our values.

    “They put the consumers first, think big, and take responsibility seriously. All our companies want to make a real difference in the lives of adult smokers by contributing to a smokeless society. We now have a presence in Europe, Asia, and North America, covering the full vaping value chain from manufacturing, wholesale, distribution, and direct-to-consumer, both online and through our global network of over 800 specialist vaping stores.”

    In 2023, group revenues increased 40 percent on the previous year to more than $1 billion, with an adjusted EBITDA of over $200 million. The outlook for the global vaping market is strong, and last year, Plxsur commissioned an independent research report that Hardy said is the “most comprehensive consumer study conducted on vaping to date”, using data from an online panel of over 30,000 consumers in six of Plxsur’s markets.

    “The opportunity available for RRP across our 12 markets is significant, and I am pleased that our Global Vaping Market Snapshot vindicates the belief that not only will this sector continue to grow at pace, but that vaping is quickly becoming the most popular form of RRP in the market, with adult smokers who switch to vaping likely to remain loyal by navigating the regulatory framework,” he explained. “Our team has established a center of excellence leading a program of capability development to ensure management teams at a local level of the skills to deliver sustained value growth.”

    Plxsur and its partners continue raising the bar as a responsible vaping group. All its companies have now committed to the six Plxsur standards (product compliance, manufacturing safety, responsible marketing, youth access, child protection and third-party product compliance) that address the biggest issues the vaping industry faces today. The company has also supported local teams across the group and guided companies in engaging with governments on policy development, particularly around preventing youth access.

    “We’re focused on migrating consumers from disposable vapes to rechargeable pod and open systems. This is a key priority for Plxsur and our companies are already delivering huge results. In Q3 of 2023, I’m delighted that our Italian business, Puff, successfully migrated many of their consumers to pod and open devices through its launch as an exclusive distributor of new-to-market pods and e-liquids,” said Hardy.  “To keep the momentum going, our portfolio companies have exciting plans to expand their range of pod systems in the first half of this year.”

    Unlike traditional business acquisitions, Hardy explained that the company’s partners are not selected based on their financial worth. Plxsur is highly selective in its choice of partners, and financial size is not the only factor determining whether a company is suitable to join the Plxsur team. Hardy cited the example of Pro Vape, a company headquartered in Riga, Latvia, which started its business in late 2016 and met all the necessary criteria to become a Plxsur partner.

    “The Baltic market is not particularly a huge market for vaping. What Pro Vape has is a significant presence in Europe,” said Hardy. “Only 40 percent of their business is domestic, and 60 percent is across the rest of Europe.”

    Plxsur has specific criteria that businesses must meet before partnering with them. Firstly, the company must be a leader in its channel, whether it is business-to-business or business-to-consumer, or a leading player in its market. Currently, all of Plxsur’s partners meet this benchmark. Secondly, having a healthy balance of company-owned brands within the portfolio is essential, with Plxsur aiming for at least 50 percent of its revenues to be driven by such brands. Thirdly, the most crucial criterion is people.

    “Our ability to retain our unique entrepreneurial spirit while growing at a rapid pace has been pivotal to our success over the past two years,” said Hardy. “We remain committed to achieving long-term value for all stakeholders, with responsibility at the core of everything we do. Supported by several tailwinds, including evolving market dynamics and customer preferences, we remain confident in Plxsur’s medium-term prospects and our ability to continue our trajectory to promote responsibility in the sector, achieve our target of over $15 billion in revenues by 2033.”

    To achieve the lofty goal, Hardy said Plxsur is well placed to capitalize on the growing trend of vaping across the globe, unlock future value, and play a leading role in shaping the sector’s future on a platform of responsibility. He said Plxsur excels at creating a distinctive, innovative business leadership environment while growing at a pace pivotal to the company’s success over the past two years.

    “We continue to see increasing regulation around vaping, particularly disposables, flavors, and marketing,” said Hardy. “At Plxsur, we see regulation as a force for good and encourage appropriate regulation and enforcement to tackle illicit and irresponsible trading behaviors. Last year, we submitted Plxsur’s response to the UK government’s open consultation on creating a smoke-free generation, and we continue to engage with regulators worldwide.

    “This engagement with responsibility at the core of everything we do places Plxsur in a prime position to continue to grow, lead the industry, and shape the future of vaping.”

  • U.K. to Introduce Generational Ban

    U.K. to Introduce Generational Ban

    The UK government is set to introduce a bill in parliament aimed at phasing out smoking among young people by prohibiting nicotine sales for future generations.

    The Tobacco and Vapes Bill, if passed unamended, will be one of the world’s toughest anti-tobacco laws and prevent children turning 15 this year or younger from ever being able to be legally sold nicotine products.

    The government said smoking itself would not be criminalized. Therefore, anyone who can legally buy tobacco now will not be prevented from doing so in the future, according to Reuters.

    “If we want to build a better future for our children, we need to tackle the single biggest entirely preventable cause of ill-health, disability, and death: smoking,” Conservative Prime Minister Rishi Sunak said in a statement.

    Critics say the move is “unconservative,” and former prime minister Liz Truss is one of several members of the governing party who have said they will vote against the legislation.

    Despite the opposition, the legislation is expected to pass with the opposition Labour Party suggesting it would support the measure.

    Last month, a similar law introduced by New Zealand banning tobacco sales to those born after Jan. 1, 2009 was repealed by the country’s new coalition government.

  • U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, according to the Local Government Association (LGA).

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. However, a minority could see the fine as a price worth paying to continue selling the products, it said.

    “We’re delighted that the government is taking decisive action to ban disposable vapes,” Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said, according to media reports. “However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    Firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, the Local Government Association (LGA) has said.

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. A minority could see the fine as a price worth paying to continue to sell the products, it said.

    Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said: “We’re delighted that the government is taking decisive action to ban disposable vapes. However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    According to LGA analysis, councils can impose larger penalties for other offenses, including up to £500 for littering, £500 for excessive noise from licensed premises, £200 for a business failing to put up “no smoking” signs, and up to £150 for unauthorized distribution of free leaflets on public land.

    The LGA, representing councils in England and Wales, calls for the government to amend the tobacco and vaping bill to allow councils to impose more severe fines.

  • Analysts: UK Vape Tax Good for Tobacco Stock

    Analysts: UK Vape Tax Good for Tobacco Stock

    Image: James Thew

    Citi analysts have identified the U.K. government’s new excise tax on vaping products as an encouraging development for BAT and Imperial Brands, reports Proactive.

    Chancellor Jeremy Hunt confirmed in his Spring Budget speech that vaping products would be subject to a new tax from October 2026. According to media reports, this move is designed to maintain a financial incentive for choosing vaping over smoking, complemented by a concurrent increase in tobacco duty.

    The taxation framework will be based on nicotine content, with a three-tiered system imposing charges ranging from £1 ($1.28) per 10 mL to £3 per 10 mL in addition to the current 20 percent VAT.

    This structured approach aims to regulate the vaping market further and aligns with the government’s health strategy by providing a less harmful alternative to traditional smoking.

    Citi’s short research note said: “Although [Wednesday’s] confirmation of the planned levy on vaping comes as little surprise, we believe that alongside the proposed ban on disposable vapes from April 25, the regulatory risk/reward is skewing to the upside for both BAT and Imperial.”

  • Boost in Noncigarette Tobacco Use: U.K.

    Boost in Noncigarette Tobacco Use: U.K.

    Image: dusanpetkovic1

    The number of people in the U.K. who smoke pipes, shisha and cigars has increased fivefold over the past 10 years, according to The Guardian.

    Based on a study published in Nicotine and Tobacco Research, in 2023, there were 772,800 exclusive noncigarette tobacco users compared to 151,200 in 2013. The study is based on research by University College London academics who surveyed 1,700 adults a month between 2013 and 2023 on their smoking habits.

    Young adults showed the largest increase in use of noncigarette tobacco. Of the surveyed 18-year-olds, 3 percent used noncigarette tobacco while 1.1 percent of 65-year-olds used these products. Men and current vapers showed a higher prevalence of noncigarette tobacco use as well.

    Experts argue that use of noncigarette tobacco can be more harmful than smoking traditional cigarettes. The British Heart Foundation has stated that smoking a shisha pipe for 20 minutes to 80 minutes amounts to the same amount of smoke inhaled from more than 100 cigarettes. The organization also stated that tobacco-free shisha still produces dangerous toxins in the smoke.

    The increase in noncigarette tobacco use could be attributed to a belief that these forms of smoking are less harmful than traditional cigarettes or to financial reasons, according to the study.

    “Tobacco kills one person every five minutes in the U.K.,” said Ian Walker, executive director of policy at Cancer Research U.K. “Research like this shows that the issue of smoking isn’t just about cigarettes—all tobacco products are harmful and cause cancer, no matter what form they come in.

    “That’s why it’s crucial that the government’s age-of-sale legislation applies to all tobacco products. If implemented, this policy will be a vital step toward creating a smoke-free U.K., preventing future generations from ever becoming addicted to tobacco.”

    “This 10-year-long study captures the shift in trends of noncigarette tobacco use and paints a concerning picture,” said Sarah Jackson, lead author of the study. “Although rates of cigarette smoking have fallen, our data show there has been a sharp rise in use of other smoked tobacco products, particularly among young people.

    “It’s vital that smoking cessation services are adequately funded and available across the U.K. so that the around 772,800 people who use noncigarette tobacco products, and the millions who use cigarettes, are given the support they need to quit.”

  • Labour Could Make Vapes Prescription-Only

    Labour Could Make Vapes Prescription-Only

    Image: stokkete

    If the British Labour Party wins the next general election, it could follow Australia’s lead and make vaping products prescription-only, according to Vaping360. The next general election will take place no later than January 2025. The Labour Party has led in the polls for about two years.

    “I’m looking very carefully at what Mark Butler and the Australian Labor government have announced,” said Wes Streeting, the Labour Party’s shadow health secretary. Streeting speaks for the party on health issues and is the likely current choice for health secretary if the party gains a majority in Parliament.

    “Their policy is in part driven by the evidence here in Australia that vaping has become a gateway drug to smoking,” Streeting said. “So, I think we need to look carefully at what the U.K. evidence is on that front.”

    According to Streeting, the vaping industry has “peddled itself as an altruistic smoking cessation service at the same time as addicting a generation of children [to] nicotine.”

    “This whole business model is built on addicting people to one of the most addictive substances known to man or woman,” Streeting said, “so we’re going to go hard on marketing selling to children, but I also want the vaping industry to go back to its roots as a genuine smoking cessation tool.”

  • Elf Bar Removing Some Flavors from U.K.

    Elf Bar Removing Some Flavors from U.K.

    Image: Tobacco Reporter archive

    Vaping brands Elf Bar and Lost Mary will remove dessert, candy and soft drink flavored disposable vapor products from the U.K. market, according to Vaping360.

    The brands make up more than half of the U.K.’s disposable vape sales, according to data firm NielsenIQ. They are owned by the Chinese firm Shenzhen iMiracle Technology, and it is unclear if the Chinese company will remove these flavors from other markets.

    Elf Bar has already ended U.K. sales of Bubble Gum and Cotton Candy flavors and renamed Gummy Bear “Gami,” according to the BBC.

    The decision is meant to help curb claims that the popular vapes are marketed to youth following a panic over youth vaping that has seen an uptick in the past couple years.

    Prime Minister Rishi Sunak proposed changes to the vaping laws in October. There is currently a public consultation to determine what actions to take.

    “The introduction of such a regime would mitigate children’s access to vapes and make it easier for the authorities to regulate the sale of vaping devices better. Furthermore, we believe it would help combat the growing illicit vape market and drive increased rates of vape recycling,” an Elf Bar spokesman said.

    Clive Bates of The Counterfactual questioned whether the move would silence the company’s critics. “Their detractors will take it as an in-principle admission of culpability and then build outward from that principle,” he said.

  • U.K. Mulls Vape Tax

    U.K. Mulls Vape Tax

    Image: Margo_Alexa

    U.K. ministers are considering a new vapor tax as part of the move to create a “smoke-free generation” that would also include a gradual total ban on smoking, according to The Guardian.

    Documents that were published along with Rishi Sunak’s first king’s speech show that an eight-week consultation on smoking and vaping is planned and will “explore a new duty” on vapor products.

    There is an “important balance” that needs to be met to make sure cigarettes are taxed higher than vapes, The Guardian noted, citing Downing Street.

    Ministers plan to introduce the new tobacco and vapes bill next month. It will include tighter restrictions on vaping and phase out the sale of cigarettes, making it so that children currently aged 14 or younger will never legally be able to purchase the products.