November 14th, 2014 — Current Issues, Electronic Cigarettes
In this fast evolving category, which is expected to be around $5 billion in the US by the end of 2014, has vaping eclipsed e-cigarettes.
Most industry insiders agree vaping is fast superceding e-cigs as the preferred category.
What are your thoughts / comments??
November 14th, 2014 — Current Issues, prices, Retail Cigarette Brand Prices Around the World
In an expected move, PM USA raised its cigarette prices by $0.07 / cents a pack, which was immediately followed by Lorillard and RJ Reynolds.
Will others follow or exploit the price differential to gain volume??
November 14th, 2014 — Conferences, Key International Business & Market Developments
Tobacco Exhibitions / Trade Shows / Conferences – 2015
Updated: November 5, 2014
- Tobacco + Expo – Las Vegas, NV – Convention Center – January 28 -29.
- AWMA – Las Vegas, NV Paris Hotel and Casino – February 24-26.
- NATO – Las Vegas, NV Paris Hotel and Casino – April 21-23.
- EuroTab / Tobacco International Krakow Poland – Targi Convention Centre – April 27 – 28
Note: Was May 19-20.
- Vapor fair / Shisha Messe – Frankfurt Germany – May 2-3.
- World Tobacco – Richmond VA Convention Center – May 12 – 14.
- TMA annual conference – Williamsburg VA – May 18-20.
- Vapor World – Rosemont IL – June 17-18.
- GTNF – Global Tobacco Networking Forum – Bologna?? Italy – September 15-17.
- Inter-Tabac / Messe Westfalenhallen – September 18 – 20 – Dortmund, Germany.
- TSRC – Tobacco Science Research Conference – Naples Florida USA – September 20-23.
- The Smoking Collection – Tokyo, Japan – October.
- Tab-Expo – London England October 20-23 – organized by Tobacco Reporter. This is a global tobacco industry supplier trade show held every 4 years and is a big deal.
- World Tobacco – Middle East Dubai Convention Centre UAE December 14-15.
October 4th, 2014 — Electronic Cigarettes
LOGIC Pushes Innovation with the Launch of Logic Pro Advanced Vapor Systems
Logic, a leading US e-cigarette company, introduces a proprietary technology that advances retail profitability and enhances the vaping experience for adult consumers.
LOGIC Technology, the No. 1 electronic cigarette company in the U.S. according to Nielsen, today announced the launch of LOGIC PRO Advanced Vapor Systems, the most sophisticated, first-of-its-kind e-vaporizing technology ever to hit the market.
Representing the next generation of vaporizers in both technology and format, LOGIC PRO Advanced Vapor Systems are designed with high-quality metals and work in conjunction with revolutionary pre-filled, vacuum sealed eLiquid capsules to provide both a heightened level of taste, consistency and value to adult consumers as well as an enhanced profitability for retailers by allowing them to recapture sales that have migrated to online stores.
The latest addition to LOGIC’s premium product line, LOGIC PRO Advanced Vapor Systems will be unveiled at the 2014 National Association of Convenience Stores (NACS) Show, taking place Oct. 7-10 in Las Vegas.
“Each year, adult consumers spend hundreds of millions of dollars purchasing e-cigarette liquid online, with no guarantee as to its quality, consistency or taste, and waste thousands more on product that spills unused from their traditional open-tank vaporizers,” said Miguel Martin, president of LOGIC Technology. “Since LOGIC PRO Advanced Vapor Systems are only compatible with specialized high-quality LOGIC PRO eLiquid Disposable Capsules and available for purchase at our partner retailers, this product revolution is an important step in advancing the e-cigarette market.”
LOGIC PRO Advanced Vapor Systems Product Highlights Include:
* One 5-count package of LOGIC PRO eLiquid Disposable Capsules provides 25% more inhales than one standard 10ml bottle.
* Same great industry leading margins as all LOGIC Technology’s premium products.
* Significantly more vapor than traditional e-cigarettes.
* LOGIC PRO eLiquid Disposable Capsules designed to allow for seamless flavor changes.
* Intelligent lock system serves as safety measure to stop accidental activation.
* LOGIC PRO Advanced Vapor System starter kit includes a USB charger and wall charger.
Available in LOGIC’s signature flavors: Black and Platinum Tobacco, Black and Platinum Menthol.
“From our inception in 2010 with the launch of our first LOGIC e-cigarettes, to the introduction of our newest, cutting-edge LOGIC PRO Advanced Vapor Systems, we’ve continued to perfect our product by harnessing both the power of innovation and the precious value of our customers’ and partners’ feedback; I believe our vigorous growth is a testament to that,” Martin said. “We’re thrilled to offer this revolutionary new technology to our loyal trade partners and adult customers, whose feedback has been vital to not only the LOGIC PRO Advanced Vapor Systems ideation and development process, but to LOGIC Technology’s continued success in the industry overall.”
LOGIC PRO Advanced Vaporizing Systems will be ready to hit retail shelves by winter 2014, accompanied by strong retail support programs. Following the launch, LOGIC Technology expects to deliver additional new products and breakthrough innovation to its adult consumers in the coming year, while maintaining its responsible industry approach.
Retailers can view the new vaping system at the NACS Show in Las Vegas by visiting LOGIC at booth 2963.
For more information on LOGIC PRO Advanced Vapor Systems and LOGIC Technology visit logicecig.com or facebook.com/logicecigarette.
April 15th, 2014 — Current Issues, General, prices, Retail Cigarette Brand Prices Around the World
President Obama has released his proposed Fiscal Year 2015 federal budget that includes a $.94 per pack increase in the federal cigarette tax rate and a proportionate 93% increase in all other tobacco tax rates. Each of these tax rates would be annually adjusted upward by an inflation index. The additional cigarette and OTP tax revenue would fund pre-school education programs for four years olds in low income families.
This is essentially the same proposal that the President included in his Fiscal Year 2014 budget, which Congress did not pass. The President’s budget has been delivered to Congress for consideration by the U.S. House of Representatives and the U.S. Senate.
Under the 2015 budget proposal, the new tax rates for cigarettes and tobacco products would be as follows:
- Cigarettes and Little Cigars: $1.95 per pack
- Chewing Tobacco: 97.13 cents per pound
- Moist Snuff: $2.91 per pound
- Roll Your Own Tobacco: $47.82 per pound
- Pipe Tobacco: $5.464 per pound
According to the White House Office of Management and Budget (OMB), the proposed cigarette and tobacco tax increases are estimated to raise $78 billion over the ten year time period from 2014 through 2024. The budget estimate indicates that the cost of expanding pre-school education to four year olds from low income families would be $76 billion over this same ten year time period.
However, the ten year budget projection issued by the OMB shows that the additional revenue raised by these higher cigarette and tobacco tax rates declines from a high of $10 billion extra dollars in Fiscal Year 2016 to $7 billion extra revenue in Fiscal Year 2024 while the cost of the pre-school education program increases from $4 billion in Fiscal Year 2016 to $11 billion in Fiscal Year 2024. In other words, after the first ten years, the cost of the program exceeds the additional cigarette and tobacco tax revenue to support the program.
March 6th, 2014 — Acquisitions, Current Issues, Key International Business & Market Developments
Recent rumors of consolidation now appear accurate with the recent news Tabesa has acquired cigarette manufacturers Veneto Tabacos and Monte Carlo.
All factories are located close to Ciudad del Este.
It remains to be seen if the factory operations will be consolidated too.
Tabesa is by far the largest cigarette producer in Paraguay with a large diverse export market. The business is owned by the recently elected President.
There are further rumors that Tabesa’s recent acquisistion frenzy is not over – so watch this space.
Will consolidation continue and where is this headed??
Who will be next?
March 3rd, 2014 — Acquisitions, Current Issues, Regulations: FDA etc.
The UK Financial Times published an article today that Reynolds American (RAI,) the US holding company for RJR Reynolds Tobacco Company – is considering acquiring Lorillard Tobacco – effectivley merging the #2 and #3 tobacco companies in the USA.
This is not new – but the timing is. Rumors of RAI acquiring Lorillard have been around for several years. Is this wishful thinking?
From one perspective it makes sense. RAI could easily merge Lorillard’s manufacturing into existing facilities – for a huge cost saving. The Lorillard business is hugely profitable. And there are further easily realizable cost-savings from consolidation.
On the other hand acquiring Lorillard now, prior to the FDA ruling on Menthol cigarettes (Newport is the US’ leading menthol brand) and e-cigarettes (Blu is the leading US e-cigarette,) looks premature.
Besides this the FTC may not like (or agree) a merger. RAI would own Newport, Kool and Salem – the number 1, 2 and 3 menthol brands in the US.
Would a combined operation compete more effectivley with Altria?
What do you think??
Who stands to benefit the most?
February 27th, 2014 — Electronic Cigarettes, Regulations: FDA etc., Tobacco Harm Reduction
Dr Michael Siegel recently commented the FDA has accomplished nothing to make cigaretes safer – citing as an example their recent denial of a substantial equivalence application.
For the first time, the FDA recently disapproved a Substantial Equivalence application, resulting in the withdrawal of four cigarette brands off the market (varants of Sutra Bidis).
It has come to light that the FDA’s bold action did not result in the brands withdrawal. This is because the four brand variants were already voluntarily withdrawn several years ago. The company did not respond to the FDA’s request for more information because it had no intention of re-introducing these products in the U.S.
The FDA stated; “this marks the first time that we have used our authority under the Tobacco Control Act to stop the continued sale and distribution of currently marketed tobacco products because they were not found “substantially equivalent” – and it is not an action we take lightly.” Dr. Michael Siegel commented: “Perhaps this is what happens when it takes two and half years to make a ruling on a substantial equivalence application. By the time you make your ruling, the brands about which you are ruling no longer exist.”
Dr Siegel further lambasts the FDA by stating; “this story merely highlights the fact that the FDA has done literally nothing in the past five years of its jurisdiction over cigarettes to protect the safety of the nation’s cigarette supply. The agency has done nothing about menthol. The agency has done nothing about nicotine. The agency has done nothing to make cigarettes safer by regulating carcinogen or chemical levels or additives. The agency has, in sum, done nothing at all to make cigarettes safer.”
He further adds; “ironically, the FDA has failed to take the one action it could have taken to make the tobacco products availalbe on the makret a lot safer: to embrace the concept of electronic cigarettes and to propose regulations that treat these products more leniently than tobacco cigarettes, in order to motivate smokers to move away from the more toxic cigarettes to the much safer fake ones.
In fact, the two actions the FDA has taken on electronic cigarettes are exactly the opposite: actions which would have protected the most toxic tobacco cigarettes from competition by the much safer electronic ones.
First, the FDA tried to ban all electronic cigarettes. Fortunately, that didn’t work. However, the agency continues to discourage electronic cigarette use and continues to have misleading information about these products on its web site.
Second, the FDA apparently tried to regulate electronic cigarettes in a manner that was inappropriately stringent and ended up protecting, instead of threatening, cigarette sales. Apparently, the Office of Management and Budget caught the FDA on that one and threw the regulations back in their lap.
At this stage, I really have to question the wisdom of having given the FDA regulatory jurisdiction over tobacco products in the first place. It was a bad idea five years ago, but it is only getting worse as the agency botches it and takes exactly the wrong actions — protecting cigarettes rather than protecting the public’s health.”