Tag: United States

  • Warnings on hold

    Warnings on hold

    The US Food and Drug Administration has issued a new guidance about how it intends to comply with a recent court order by not enforcing the warning statement requirements for cigars and pipe tobacco products until 60 days after the final decision of the Plaintiffs’ appeal.
    In addition, the guidance, Compliance Policy for Certain Labeling and Warning Statement Requirements for Cigars and Pipe Tobacco, states that the agency does not intend to enforce the labeling requirements under sections 903(a)(2) and 920(a) of the Food, Drug, and Cosmetic Act for cigars and pipe tobacco while the injunction remains in effect. During this time, however, cigar and pipe tobacco firms may add the warnings and make these labeling changes.
    In a note issued through its Center for Tobacco Products, the FDA said it had revised also the following guidance documents to reflect the compliance policy outlined above:

    The note drew attention also to a new tobacco compliance webinar, Retailer Requirements: New Warning Statement Requirements for Certain Tobacco Products. The webinar is said to address the addictiveness warning statement requirement and which tobacco products it applies to, and to answer some frequently asked questions from tobacco retailers about the warning statement requirements.
    The FDA said it had created too several visual examples of the required addictiveness warning statement on different tobacco product packaging, and that it had developed a side-by-side product and warning statement chart.

  • What's in a name?

    What's in a name?

    The US Food and Drug Administration has done the tobacco industry a service by tackling head-on the issue of what to call certain new generation products. In a note issued through its Center for Tobacco Products, the FDA said that media reports and descriptions of these products had referred to them as heat-not-burn or heated tobacco product, and it could have added other names. ‘These colloquial terms do not appear to have universally-agreed-upon definitions (although they seem to be used on an interchangeable basis),’ the note said. ‘For the FDA’s purposes, a tobacco product that meets the legal definition of a cigarette, but for which there is evidence that the heat does not reach a level sufficient to cause combustion of the tobacco product is currently categorized as a “non-combusted cigarette”.’
    The note was focused on pointing out that its system of Substantial Equivalence worked in respect of non-combusted cigarettes. ‘On July 19, FDA issued Substantial Equivalence (SE) orders for two R.J. Reynolds Tobacco Company tobacco products, Eclipse and Eclipse Menthol,’ the note said. ‘This marks the first time that FDA has issued SE orders on regular SE Reports for non-combusted cigarettes. This action demonstrates that the SE premarket review pathway is viable for non-combusted cigarettes. In addition, each of these products could serve as a predicate product for future SE Reports.’
    To receive an SE order, the manufacturer must demonstrate that the new tobacco product has the same characteristics as the predicate tobacco product; or if it has different characteristics to those of the predicate tobacco product, that those differences do not cause the new tobacco product to raise questions of public health different to those raised by the predicate product. ‘The SE order permits the marketing of the new tobacco product. The SE order means that FDA determined that these products met the statutory standards of the SE pathway. The review did not assess the harm or risk of these products compared to other tobacco products beyond the finding that the differences in characteristics between the new and corresponding predicate tobacco products do not cause the new tobacco products to raise different questions of public health.
    ‘FDA’s scientific review of the SE Reports for these two products found that there were differences in characteristics between the new and predicate products, but that these differences do not cause the new tobacco products to raise different questions of public health. The predicate tobacco product was a non-combusted cigarette with the same name. The differences include, but are not limited to, differences in ingredients and the incorporation of a functional filter. This action is specific to the comparison between these new tobacco products and their respective predicate tobacco products.
    More information is at: https://www.fda.gov/TobaccoProducts/Labeling/TobaccoProductReviewEvaluation/ucm339928.htm?utm_source=Eloqua&utm_medium=email&utm_term=stratcomms&utm_content=landingpage&utm_campaign=CTP%20News%3A%20SE%20Eclipse%20-%2081018

  • Vaping myth debunked

    Vaping myth debunked

    The US Centers for Disease Control and Prevention (CDC) has found that electronic-cigarette vapor contains no more formaldehyde than the level present in the average US home, according to a story by Matt Rowland for vapes.com.
    The CDC recently published the results of an air-quality study entitled Evaluation of Chemical Exposures at a Vape Shop, which was published on the CDC website.
    In addition to testing the quality of the air inside the vape shop, the CDC swabbed countertops, storage systems, and commonly-touched surfaces located in the back of the store.  They swabbed the fingers and hands of several employees.
    The air quality testing did not produce measurable concentrations of formaldehyde or other toxins. Area sampling results showed that background formaldehyde concentrations were similar to the personal sampling results, the CDC said.
    ‘Low concentrations of formaldehyde exist in many indoor environments because of off-gassing from furnishings, clothing, and other materials,’ it pointed out.

  • Tariffs threaten vaping

    Tariffs threaten vaping

    Proposed tariffs on US imports of vaping products from China could not come at a worse time for the industry, according to a story by Kara Carlson for Reuters.
    New levies would increase prices just as the industry was facing slowing growth and a requirement to add new health warnings to packaging.
    The Trump administration has threatened 25 percent tariffs on $200 billion worth of Chinese imports, including vaping devices and parts, in addition to the tariffs on imports worth $50 billion already imposed.
    Vaping has surged in popularity in recent years, partly on health grounds and partly because of price.
    But the tariffs could increase the price of a vape by about 15 percent, according to industry estimates.
    Carlson said that such an increase would be particularly painful for an industry where consumers are highly sensitive to rising prices.
    A study in the journal Tobacco Control estimated a 10 percent price increase in e-cigarettes would reduce sales by between 12 percent and 19 percent. The study noted that because many vapers were experimenting, rising prices could curtail future use.

  • Good year ahead

    Good year ahead

    Universal Corporation said yesterday that it had performed strongly during the first quarter of what it predicted would be a good year.
    In reporting the company’s first quarter results to the end June, chairman, president, and CEO George C. Freeman, III said the company had benefited from higher carryover crop sales in several origins, particularly in its North America segment, where sales volumes in the fourth quarter of fiscal year 2018 were hampered by shipping delays from reduced transportation availability in the US. ‘We are also continuing to see robust demand for both wrapper style tobaccos and related value-added processing services. We have increased our offerings to meet demand for natural wrappers in both the United States and Europe and continue to be a leading wrapper tobacco supplier.’
    Freeman said that crop purchases were progressing as expected, with purchasing effectively completed in Brazil and well underway in Africa. ‘We are not seeing any significant supply disruptions thus far this year,’ he said. ‘Burley production volumes have recovered in Africa, and crop sizes there for both flue-cured and Burley tobaccos are coming in somewhat higher than previous estimates.
    ‘Although it is still early in our fiscal year, we are pleased with our results to date and continue to expect that our volumes will be above those achieved last fiscal year. We are also focused on our enhanced capital allocation strategy that reflects the strength of our balance sheet and demonstrates our commitment to sustainable shareholder value creation. As announced in conjunction with our 36 percent dividend increase in May 2018, our strategy has four key priorities: strengthening and investing for growth in our core tobacco business; increasing our strong dividend; exploring growth opportunities in adjacent industries that would utilize our assets and capabilities; and returning excess capital to our shareholders. In line with this strategy, we are positioning our company for ongoing success as we continue to identify areas where we can provide additional value and expand the services we provide customers in our core tobacco business.’
    Universal reported net income of $13.2 million, or $0.52 per diluted share, for the first quarter of fiscal year 2019. ‘Those results were up $9.6 million compared with net income of $3.6 million, or $0.14 per diluted share, for the first quarter of fiscal year 2018,’ the company reported. ‘The first quarter of fiscal year 2019 included a non-recurring tax benefit from the reversal of a previously recorded foreign dividend withholding tax liability that reduced income taxes and increased net income by $6.9 million, or $0.27 per diluted share.
    ‘Operating income of $8.4 million for the quarter ended June 30, 2018, improved $2.0 million, or 31 percent, compared to operating income of $6.4 million for the quarter ended June 30, 2017. Similarly, segment operating income was $8.9 million for the first quarter of fiscal year 2019, up $3.0 million compared to the same period last fiscal year, mainly as a result of earnings improvements in the North America and Other Tobacco Operations segments, partially offset by earnings declines in the Other Regions segment. Revenues of $379.7 million for the quarter ended June 30, 2018, increased by $95.1 million, or 33 percent, on higher total volumes and processing revenues and a more favorable product mix.’

  • Regulating innovation away

    Regulating innovation away

    Juul Labs Inc., maker of the US’ top-selling electronic cigarette, Juul, is attempting to use Bluetooth technology to limit youth usage of its products, according to a TechBeast story.
    However, the strategy is unlikely to be rolled out domestically for years since it would require Juul Labs to complete a daunting Food and Drug Administration regulatory review.
    “We are actively evaluating new technologies and features to help keep Juul out of the hands of young people,” the company said in a statement issued on Friday.
    And Kevin Burns, the company’s chief executive, told Bloomberg News that “we’re not a lifestyle brand, we’re a functional product. We don’t want the product to seem cool.”

  • Unauthorized risk reduction

    Six leading public health and medical organizations yesterday urged the US Food and Drug Administration (FDA) ‘to stop the sale of new electronic cigarette products that have been illegally introduced in recent months without the agency’s prior review and authorization,’ according to a note posted on the website of the Campaign for Tobacco Free Kids, one of the signatories.
    ‘These include numerous products similar to the Juul e-cigarettes that have become wildly popular with teens across the United States,’ said the Campaign note.
    ‘The groups sending a letter to FDA Commissioner Scott Gottlieb are the Campaign for Tobacco-Free Kids, American Academy of Pediatrics, American Cancer Society Cancer Action Network, American Heart Association, American Lung Association and Truth Initiative. The letter was accompanied by images of the new e-cigarettes.
    ‘Over the last year, the use of Juul has skyrocketed among youth across the country, as commissioner Gottlieb has acknowledged and reports by news media and educators have documented. It is about to happen again.’
    The Campaign then quoted Gottlieb as writing in a blog post last week that the agency had become aware of reports that some companies might be marketing new products that were introduced after the FDA’s compliance period and that have not gone through premarket review. ‘These products are being marketed both in violation of the law and outside of the FDA’s announced compliance policies,’ Gottlieb was quoted as saying. ‘We take these reports very seriously. Companies should know that the FDA is watching and we will take swift action wherever appropriate.’
    The Campaign said the FDA had the tools to prevent this from happening. ‘The FDA’s 2016 rule extending its authority to e-cigarettes (called the “deeming rule”) prohibits the introduction of any new product after August 8, 2016, unless the manufacturer files a premarket review application with the FDA and the FDA issues an order authorizing the marketing of the product,’ it said. ‘While the FDA delayed this review requirement until 2022 for e-cigarettes that were already on the market as of August 8, 2016, the premarket review requirement still applies to new or changed products introduced after August 8, 2016, and it is those products that this letter addresses.’
    The Campaign complained that, despite this requirement, manufacturers had recently introduced numerous new e-cigarette products without any evidence that they had filed premarket applications or received marketing orders from the FDA. ‘These include products that look like and seek to capitalize on the success of Juul, which is sleek, high-tech and easy to hide (it looks like a USB flash drive), comes in sweet flavors including mango and fruit medley, and delivers a powerful dose of nicotine,’ the Campaign said.
    ‘Manufacturers that have recently introduced or announced Juul-like products include big tobacco companies Altria (with its MarkTen Elite product), ITG Brands (with myblu) and R.J. Reynolds (with its recently-announced Vuse Alto). Similar products introduced by independent manufacturers include Kandy Pens’ Rubi, MLV’s PHIX and Mylé Vapor’s Mylé.’
    In their letter, the health groups complained that manufacturers of e-cigarettes had introduced new products at an ‘alarming pace’ in total defiance of the law, with no apparent concern for FDA enforcement. ‘We urge FDA to take quick and aggressive action to enforce the law before one or more of these products become the next Juul phenomenon among our nation’s youth,’ the letter apparently stated.
    Meanwhile, the Campaign said that, in April, the same six organizations had urged the FDA ‘to take action to address Juul’s popularity among youth, including removing from the market Juul flavors such as mango and cool cucumber that appear to have been introduced after August 8, 2016, without FDA review’.
    It said that the health groups’ letter made the point that the issue was not whether the FDA had the authority to prevent the introduction and marketing of products that appealed to kids; it was whether the FDA would exercise the authority it clearly possessed.

  • Reviewing the processes

    Reviewing the processes

    The US Food and Drug Administration is inviting participation in a discussion about its policies and processes for tobacco product application review.
    The meeting, at which it is not intended to communicate any new policies or interpretations regarding tobacco product marketing applications and their review, is due to be held on October 22-23 at the Tommy Douglas Conference Center in Silver Spring, Maryland.
    It is due to cover a number of subjects including the general scientific principles relevant to substantial equivalence reports, exemption requests, premarket tobacco applications, and modified risk tobacco product applications.
    Topics to be addressed during the meeting include:

    • An overview of the tobacco product marketing application types;
    • Information that should be included in a tobacco product marketing application;
    • Administrative processes involved in the submission and review of a tobacco product marketing application;
    • Other topics relevant to the submission of tobacco product marketing applications, including tobacco product master files, meeting requests, grandfathered review, and environmental assessments.

    ‘Featuring presentations from FDA staff, expert panels, and a live Q&A, this free public meeting aims to make the FDA’s tobacco product review process more efficient, predictable, and transparent,’ the FDA said in a note issued through its Center for Tobacco Products. ‘This is in keeping with the agency’s continued focus on helping industry to comply with federal tobacco regulations, while also upholding our public health mission.
    ‘The meeting will also be webcast live, free of charge, but registration is required. After the meeting, we will post the archived webcast and complete transcripts on the FDA website as soon as they are available.’
    The FDA said that additional details, including the agenda and webcast link, would be made available closer to the meeting date.
    It said it was accepting nominations for panelists interested in addressing the above topics. ‘To be considered, provide a one-page biosketch that describes and supports the individual’s expertise on the topic(s) being presented, the nature of the individual’s experience with tobacco product marketing applications and research, positions currently held, and any program development activities in which the individual has been involved,’ the note said. Nominations should be sent to workshop.CTPOS@fda.hhs.gov through August 31.
    Registration should be carried out no later than September 21.

  • As night follows day…

    As night follows day…

    There was a big increase in sales of electronic cigarettes and related products in the US in recent years as their prices fell, according to a HealthDay story citing a federal government study and a NBC news report.
    The study, which was published on Thursday in the journal Preventing Chronic Disease found that average monthly sales of such products rose by 132 percent from 2012 to 2017.
    During the same period, average monthly prices were said to have decreased ‘significantly’ in 39 states for rechargeables, in 31 states for disposables, in 20 states for pre-filled cartridges, and in eight states for e-liquids.
    ‘Overall, US e-cigarette unit sales generally increased as product prices decreased,’ wrote the team at the Office on Smoking and Health, part of the US Centers for Disease Control and Prevention.
    In related news, the US Food and Drug Administration officials said on Thursday that the agency was preparing a new product standard for e-cigarettes.
    The FDA was said to have a number of concerns about e-cigarettes, ‘including harmful chemicals they might contain and the risk they could get young people addicted to nicotine’.

  • AOI spreads its wings

    AOI spreads its wings

    Pieter Sikkel

    As part of its One Tomorrow strategy, Alliance One International is continuing to make measured investments in industrial hemp, e-liquids and legal Canadian cannabis business lines as the company builds its capabilities to position them for further success in evolving regulatory and consumer environments, said president and CEO Pieter Sikkel in announcing AOI’s first quarter results.

    ‘Our industrial hemp joint venture, Criticality, LLC, (Criticality) is taking active steps to become a leader in the production of cannabidiol hemp oil (CBD) and related consumer products,’ Sikkel said. ‘We look forward to receiving and processing hemp at Criticality’s facility in North Carolina this fall.

    ‘Our e-liquids investments continue to demonstrate positive momentum. Last month, Fontem Ventures introduced Salt of the Earth, an additional product line that is a direct result of the relationship with our Purilum joint venture and utilizes Purilum’s premium nicotine salt e-liquids.

    ‘As October 17, 2018, the effective date for legalization of recreational cannabis use in Canada, draws closer, our Canadian cannabis subsidiaries are rapidly gearing up to meet expected consumer demand beyond the current legal medicinal market. As previously announced, construction work on an additional 310,000 square feet of greenhouse and warehouse space is underway as FIGR, our wholly owned indirect Canadian subsidiary, works toward its total goal of over one million square feet of production in that market.’

    Sikkel said that the fiscal year had got off to a strong start and that AOI was building positive momentum in its leaf business and making continued progress on its One Tomorrow transformation initiative announced earlier this year.

    He said that strong operating plans had been put in place, including ‘measured inventory reductions’.

    ‘We continue to optimize our global footprint and have taken steps to capitalize on opportunities in regional markets, further positioning our leaf business to meet the evolving needs of tobacco product manufacturers…

    ‘The investments we have made in agronomy services and our track-and-trace technology remain an integral component of all aspects of our business.

    ‘As our contracted farmer base continues to increase the yields of their non-tobacco crops, we are actively working to build the value-added processes that will support the diversification of their incomes.

    ‘By keeping the farmer at the center of everything we do, we are able to confidently provide customers across all of our business lines with sustainable and traceable agricultural products, ingredients and services.’

    Alliance reported total sales and other operating revenues increased by 5.1 percent to $291.0 million as, it said, crops in South America and other origins returned to a more normalized cycle when compared to that of the same period of the previous fiscal year.
    Gross profit increased by 44.8 percent to $41.4 million, and gross profit as a percentage of sales was 14.2 percent this year, up from 10.3 percent.

    Operating income increased by $5.3 million to $4.7 million.

    Net loss attributable to Alliance One International, Inc. for the quarter improved to $0.8 million, compared with $32.5 million last year, and adjusted EBITDA improved by 93.7 percent to $19.4 million.