E-Cigarette Tax Bill Update

E-Cigarette Tax Bill Update

22 states have proposed e-cig taxes in 2015

Published in Tobacco E-News

By

Thomas A. Briant, NATO Executive Director
E-Vapor
MINNEAPOLIS – Since the beginning of this year, 22 states and the District of Columbia have introduced bills that would assess an excise tax on electronic cigarettes and nicotine liquid solutions used in e-cigarettes. With some state legislatures already adjourned and other states moving closer to adjournment for the year, the picture on e-cigarette taxes is becoming clearer.
What is interesting is not just the fact that so many states are considering e-cigarette taxes, but also the different methods being proposed to tax e-cigarettes. So far, bills in eight states to tax e-cigarettes have either been defeated or died due to adjournment of the legislature.
These eight states and the proposed tax rates that failed include the following:
Arizona: 18 cents per milliliter of nicotine solution.
Arkansas: 7.5 cents per milliliter of nicotine solution.
Indiana: 24% of the wholesale price.
Kentucky: 40% of the wholesale price.
Montana: 1.73 cents per milligram of nicotine solution.
Nevada: 30% of the wholesale price.
New Mexico: 4 cents per milligram of nicotine solution.
Virginia: 18 cents and 40 cents per milliliter of nicotine solution.
The other legislatures with tax bills still pending include the following states:
Alabama: 25 cents-per-milliliter of nicotine solution.
Hawaii: 70% of the wholesale price.
Maine: Cigarette tax rate of $2.00.
Massachusetts: Cigarette tax rate of $3.51.
Minnesota: 30 cents per milliliter of nicotine solution.
New Hampshire: 73.94% of the wholesale price.
New Jersey: 75% of the wholesale price.
New York: 75% of the wholesale price.
North Carolina: 3 cents per milliliter of nicotine solution.
Ohio: 60% of the wholesale price.
Oregon: 81.25% of the wholesale price.
Rhode Island: 80% of the wholesale price.
Vermont: 46% of the wholesale price.
Washington: 60% of the retail price.
Washington D.C.: 70% of the wholesale price.
For those state legislatures that have not passed an e-cigarette tax bill, there are several key reasons for not enacting such a tax. First, there is uncertainty as to how e-cigarettes and nicotine liquid should be taxed. That uncertainty is reflected in the five different tax methods proposed under these bills including an OTP rate, a per-milliliter rate, a per-milligram rate, a cigarette tax rate, and a percent of the retail price. Second, e-cigarette taxes will not generate a significant amount of tax revenue. Third, some lawmakers do not want to use tax policy that would discourage people from transitioning to e-cigarettes.
The tax landscape on e-cigarette taxes will become clearer as additional states wind up their 2015 state legislative sessions in the next several months.
During January of this year, bills have been introduced in eight state legislatures to assess a tax on electronic cigarettes or the nicotine liquid solution used in e-cigarettes. These proposed tax bills include the following:
Arkansas: House Bill 1156 would assess a tax of 7.5 cents per milliliter of nicotine liquid solution.
Indiana: Senate Bill 384 would tax e-cigarette vapor products at a rate of .83 cents per milligram of nicotine in each milliliter of nicotine liquid solution.
Nevada: Senate Bill 79 assesses a tax on nicotine liquid solution at the rate of 30% of the wholesale price.
New Mexico: Senate Bill 65 taxes a tax of four cents per milligram of liquid nicotine liquid solution in an electronic cigarette.
New York: Assembly Bill 296 and Senate Bill 722 tax electronic cigarettes and electronic cigarette cartridges at a rate of 75% of the wholesale price.
Oregon: Two bills, D1037 and D2268, would expand the definition of tobacco product for purposes of taxation to include electronic cigarettes and nicotine liquid solution in order to
apply the state’s tobacco tax rate of 65% of the wholesale price.
Virginia: House Bill 1310 imposes a tax on electronic cigarettes and other vapor products at a rate of 40 cents per milliliter of nicotine liquid solution.
Washington: House Bill 1645 and Senate Bill 5573 would impose a tax on electronic vapor products at a rate of 95% of the taxable sales price.
With many state legislative sessions just beginning this month, plus four state legislatures that open their 2015 legislative sessions in the next month or two, there could be bills introduced in other states to propose a tax on electronic cigarettes or the nicotine liquid solution used in e-cigarettes.
Currently, only Minnesota and North Carolina tax the sale of e-cigarettes with Minnesota assessing a tax rate of 95% of the wholesale price and North Carolina assessing a tax rate of five cents per milliliter of liquid nicotine solution.
Tom Briant, NATO By Thomas A. Briant, NATO Executive Director

SFATA Conference Takeaways

ecigarettesE-cigarette/nicotine debate needs to be re-focused.

Wells Fargo Securities LLC recently attended the Smoke-Free Alternatives Trade Association (SFATA) Conference outside of Chicago, “headlined” by Mitch Zeller, Director of the FDA’s Center for Tobacco Products.

“Encouragingly, Director Zeller underscored the importance of ‘opening up the dialogue’ across various stakeholders in the nicotine space, suggesting to us that he and the agency remain committed to using science and data to shape regulation while recognizing the nicotine continuum of risk which is consistent with his previous comments. Director Zeller even remarked that conference participants were ‘preaching to the choir’ with regards to the need for the debate to change,” said Bonnie Herzog, managing director, beverage, tobacco and convenience store research for Wells Fargo Securities LLC.

Herzog outlined other key takeaways from Zeller:

(1) The societal debate around e-cigs needs to be re-focused on “issues that really matter”—namely what role e-cigs or other potentially less harmful, non-combustible nicotine delivery systems could play in net population-level harm reduction…

(2) The issues driving the e-cig/nicotine debate center around youth access, flavors, and marketing, which are undoubtedly very important but have diverted attention from the bigger-picture issues such as this reduction of harm mentioned above;

(3) The FDA has “taken seriously” the comments, considerations and concerns of small manufacturers who don’t have the financial and human resources of Big Tobacco; and

(4) The FDA is engaged with other FDA “centers” – particularly the Center for Drug Evaluation and Research (CDER) and Center for Devices and Radiological Health (CDRH) to explore the role of “therapeutic nicotine.”

“We remain cautiously optimistic that the FDA ‘gets it’ with regards to a nicotine risk continuum that will ultimately be reflected in regulation. We remain bullish on vapor long-term, but near-term we’re more cautious given increased uncertainty,” Herzog said.

Herzog noted that a consistent theme throughout the day was the need for alternatives for smokers who can’t or won’t quit, within a ‘continuum of risk’ framework.

Deeming Rules
Once the deeming rule is final, Herzog noted, it will proceed to the OMB (Office of Management and Budget) for review. The OMB’s cost/benefit analysis is expected to take about 3-6 months.

“Regardless of what the final rule entails, conference speakers encouraged the industry to start preparing (compiling ingredients lists, implementing manufacturing standards, etc.), even though implementation and enforcement of the regulation will likely take years in our view,” Herzog said. “Further, the final rule could be more of a ‘guideline’ in nature with guidance being issued over time to govern the specifics…”

Japan Tobacco to buy U.S. e-cigarette maker Logic Technology

(Reuters) – Japan Tobacco said on Thursday it had agreed to buy Florida-based e-cigarette maker Logic Technology Development LLC as it aims to become a global leader in the nascent, but fast-growing, market.

Japan Tobacco will fund the acquisition with existing cash and loan facilities, and expects to complete the deal in the third quarter of this year following regulatory approval, it said.

It did not say how much it was paying for Logic Technology, founded in 2010. Japan Tobacco last year also bought UK-based Zandera Ltd, best known for its E-Lites brand of electronic cigarettes.

(Reporting by Chang-Ran Kim and Junko Fujita; Editing by Clarence Fernandez)

Rodu: Tobacco Control Is Getting It Wrong

Research, policy expert takes on myths, claims, rhetoric about smokeless and e-cigs

Published in CSP Daily News

By

Melissa Vonder Haar, Tobacco Edito
 

LAS VEGAS – Anti-tobacco campaigns are getting it wrong, Dr. Brad Rodu, professor of medicine and holder of the endowed chair in tobacco harm reduction research at the University of Louisville, said during his presentation at the NATO Show in Las Vegas.

The American anti-smoking campaign is approximately 50 years old. Yet, by the Center for Disease Control & Prevention’s own numbers, there are still 42 million smokers and 400,000 smoking-related deaths per year, a figure Rodu said the CDC is not underestimating.

“Those numbers have not changed in the 20 years I’ve been involved in harm reduction,” Rodu said.

A big problem with the anti-smoking and anti-tobacco crusades is that they embrace an abstinence-only rhetoric. Even Food & Drug Administration (FDA)-approved nicotine replacement therapies (NRTs) are intended for only short-term use. Although, as Rodu pointed out, those “replacements” aren’t exactly a raging success.

“FDA-approved NRTs work for just 7% of smokers,” he said. “Can you think of another FDA-approved medication that works for just 7% of people? What if aspirin worked for less than 10% of people with headaches?”

What does work, according to Rodu and his 20 years of research, is the concept of a nicotine risk continuum—educating adult smokers on potentially less-harmful ways of consuming nicotine and giving them the choice.

“Smokers aren’t sick,” said Rodu. “They don’t want to be treated. They just want to have options.”

Unfortunately, too often, the public at large is not properly educated on reduced harm alternatives. During his NATO Show session, Rodu looked at the fallacies and realities of two such alternatives currently on the market: smokeless tobacco and electronic cigarettes.

The Real Risk of Smokeless

Rodu is an oral pathologist who has spent his entire career working in medical and cancer centers.

“I’d been taught smokeless tobacco use was basically a death sentence through mouth cancer,” he said. “But I wasn’t seeing this link in the people I was treating.”

This realization set in motion research that would define Rodu’s career as an alternative tobacco advocate. He came to find that moist and chewing tobacco use carry virtually no mouth cancer risks: only powder dry snuff. Rodu’s research showed that out of 100,000 people, three non-smokeless users might get mouth cancer, three moist or chewing tobacco consumers might get mouth cancer; for powder dry snuff, that number is more like 12.

“The link between powder dry snuff and mouth cancer was reported in 1981 and was applied to every single smokeless tobacco product,” said Rodu. “Anti-tobacco groups are still avoiding this truth. Everyone thinks it’s an enormous risk—it’s not.”

Same Campaign, New Product

Unfortunately, similar misconceptions are being spread about the e-vapor category.

“The same unscientific and irresponsible campaign against smokeless tobacco is now starting to be conducted with e-cigarettes,” Rodu said, and proceeded to debunk some of the biggest myths reported about the category:

  • The ingredients are poisonous. There are very few ingredients in e-liquids: nicotine, water, flavoring and propylene glycol. “Propylene Glycol is what produces fog at a rock concert,” Rodu said. “It’s considered a generally safe agent by the FDA.”
  • They produce formaldehyde. “This doesn’t happen at normal levels,” said Rodu. “They cranked the voltage way up to levels that would have created a horrible taste. No vaper would do that. You would get similar formaldehyde levels from eating charred toast from a toaster.”
  • They are a gateway for teens to smoking. “In fact, we are witnessing a historic decline in teen smoking, there’s no doubt about that,” he said. “It’s clear that e-cig use is growing (in teens)—but look at how drastically smoking rates are declining. If e-cigs were a gateway, wouldn’t it be the other way around?”

Ultimately, Rodu expressed optimism about the future of tobacco alternatives and the role retailers can play.

With two decades of experience in the world of tobacco research and policy, some 40 scientific articles in the field of harm reduction and authoring a successful blog and book on tobacco harm reduction, Rodu said it’s actually tobacco retail events like the NATO Show that excite him.

“I’m a little nervous. I’ve been waiting 20 years to make this presentation,” he said, while also marveling at the very thought of a cancer researcher presenting at a tobacco trade show.

“I’ve been trying to reach out to consumers to show them options and alternatives for using tobacco in a different way,” said Rodu. “It has been very difficult given the anti-tobacco campaigns we’ve all experienced. I see reaching out to retailers as really, really important.”

He concluded, “This transformation is taking place. The winners are consumers, public health … and the tobacco industry and retailers. If you endorse and embrace this transformation of tobacco, you can help your consumers live longer and healthier lives, you can keep them satisfied and you can also pay the bills.”

The Changing Vapescape

Dollar stores growing share; Vape shops not afraid of c-stores

Published in CSP Daily News

By

Mitch Morrison, Vice President & Group Editor

LAS VEGAS – The landscape of vape is undergoing a critical change.

We’re not talking about the turbulent tide of tanks, mods, liquids and the glut of fresh products flowing into the market each month. We’re talking about a relatively new marketer of vaping products–dollar stores.

“Dollar stores are coming on strongly,” Don Burke, senior vice president at data specialists Management Science Associates (MSA), shared with convenience-store and tobacco-shop operators at the NATO Show in Las Vegas.

In a fast-paced presentation, Burke explored the evolution of electronic cigarettes and the broader vaping category in tobacco outlets, convenience stores and dollar stores. In addition, he shared preliminary information from a recently launched proprietary survey of vape shops (see highlights below).

The story of dollar stores begins in the broader context of the channel’s cautious embrace in recent years of nicotine products–cigarettes, cigars and vaping. With a chart, Burke showed that while tobacco outlets represent only 3% of total retail outlets, the trade sells 8% of nicotine devices in the United States. Convenience stores, making up 47% of total retail outlets, sell nearly 63%.

Accounting for 5% of total retail outlets, the dollar channel, with up to 30,000 stores, sells only 1% of all-sold nicotine in the United States. But here’s the rub–nicotine sales in the dollar channel soared 42% last year, while declining 3% in tobacco outlets and growing a modest 1% in c-stores.

That shift, Burke observed, will continue in 2015 and most likely for the coming years. While no one will match the specialization and breadth of nicotine products available at tobacco outlets, Burke could envision dollar stores aiming to emulate c-stores in inventory breakdown, at least for the top-performing segments.

Indeed, a look at c-stores showed premium representing 67% of total tobacco volume, followed by discount cigarettes at 22%. Vaping made up 2%. At dollar stores, cigarettes dominated with premium and discounted accounting for 90%, but with vaping now making up 8%.

In other highlights:

  • Vape shop survey. In early April, MSA launched a survey of vaping shops, reaching out via email to 7,900 units. With comprehensive responses from 66 (the goal is 200), Burke offered several impressions from vape shop operators:
    • Their biggest competition. Online vape sellers and brick-and-mortar vape shops easily ranked as the primary competition, with c-stores and tobacco outlets lagging.
    • Consumer. While many point to millennials as the sweet spot, vape shops say it’s Gen X, with customers between the ages of 31 and 50 making up the largest segment. As Burke put it, “It’s an older consumer that are going to them.” Of the consumers, more than 70% are smokers who are either looking for alternatives or aiming to quit altogether. “Many consumers see [vaping] as an opportunity to quit or, at least, to try something as a less-harmful” nicotine delivery system, Burke said.
    • Cigalikes (e-cigarettes). The major brands are dominating, led by Reynold’s Vuse and MarkTen, which is produced by Altria’s Nu Mark subsidiary. NJOY, Mistic and Logic also ranked among the major players.
    • E-Liquids. Unlike with cigalikes, no one manufacturer stands out in the plentiful world of e-liquids. As for flavors, tobacco, menthol and fruit capture virtually the entire spectrum. “You don’t need to carry thousands of SKUs.”
  • Cannabis. Is weed cutting into vape or cigarette sales? In a word, No! “I think this is encouraging news,” Burke said. “Where cannabis has been legalized, we do not see an impact on nicotine delivery.”

Inaugaral World Tobacco North America Event Invite

YOUR INVITATION TO ATTEND WT NORTH AMERICA

The inaugural WT North America event will extend the widely successful WT series of events to the North American market. We invite you to register free of charge now, so that you can start planning your business meetings at the event. RSVP NOW at www.worldtobacco.co.uk/WTNAinvite

With a wealth of experience in delivering international events across the world, we will be attracting visitors from throughout North America and beyond, who are looking for new solutions and products.

Who should attend?

Anyone who works within the Tobacco manufacturing industry and is interested in meeting suppliers and potential partners within the following areas:

  • Adhesives
  • Agencies
  • Cut tobacco
  • Agricultural machinery
  • Cigarettes
  • Cigarette tipping and plug-wrap
  • Cigars
  • Flavouring and aromatic materials
  • Inspection, test and laboratory equipment
  • Leaf import and export
  • Monopoly manufacture
  • Packaging materials
  • Printing and print supplies
  • Processing and packaging machinery
  • Tobacco machinery
  • Wholesale distribution

Entrance to the exhibition is FREE OF CHARGE to all industry-related personnel.

By registering online now at www.worldtobacco.co.uk/WTNAinvite you will avoid the queues onsite with your fast-track entrance pass and receive a FREE catalogue on arrival, making it easier to find the exhibitors you need to see.

Please note WT Europe 2016 is only open to visitors and exhibitors over the age of 18 who are involved in the tobacco industry.

 

Reasons to attend

7 good reasons to come along to WT North America

Entrance is free of charge and by attending you will be able to:

  1. Access a large and growing tobacco market at a new and exciting destination – see the list of exhibitors overleaf
  2. Build relationships and network with industry personnel from all over the world
  3. View the latest innovations and update your knowledge on the issues facing the industry
  4. Attend a series of Exhibitor Business Presentations with your exhibition pass – fold out to see the full schedule
  5. Learn and debate the challenges facing the industry at the WTNA Conference – fold out for full details
  6. Network with friends new and old in one time at one place
  7. See the latest machinery and equipment in action

RSVP to this invitation now by registering online www.worldtobacco.co.uk/WTNAinvite

DON’T FORGET TO ALSO TELL YOUR COLLEAGUES ABOUT THIS ESSENTIAL EVENT

 

Conference – The Future Supply of Leaf Tobacco

World Tobacco is happy to announce the North America Leaf Conference scheduled to take place alongside the WTNA Exhibition 12 – 13 May 2015.

The conference will be devoted entirely to the matters of the international leaf tobacco market and title of the conference is very appropriately called – The Future Supply of Leaf Tobacco.

The conference programme is as follows, however please note that this is subject to change, so please check the website for the latest updates – www.worldtobacco.co.uk/north-america

Tuesday, 12 May 2015

10:00 Chairman’s Welcome Dr. Antonio Abrunhosa, ITGA
10:15 Welcome to Richmond- the heart of North American tobacco Secretary Haymore, Virginia Governor’s Office
10:20 The importance of leaf tobacco as cash crop Ted Broome, ULT
10:50 An overview of US Flue- Cured Robbie Fulford, Reynolds A,merica
11:20 Coffee Break
11:40 The future supply trends for leaf tobacco Gene Wortham, BAT
12:10 FDA’s Center for Tobacco Products (CTP): An Overview of its Requirements and Advice on How to Navigate Through Them. Les Weinstein, EAS Consulting Group
12:40 The changing face of the European leaf -the decline of subsidies Carlo Sacchetto, FETRATAB
14:10 The future supple of Burley Daniel Green, Burley Stabilization
14:40 Ecological purity and authenticity of Bulgarian tobacco. Hristo Bozukov, President of the Bulgarian Agricultural Academy
14:40 The future supply of Oriental Noyan Gurel, Sunel
15:10 Contemporary chemistry for mass market cigars John Lauterbach, Lauterbach & Associates
15:40 Coffee Break
16:00 Improving the yield flu-cured leaf David Reed, Virginia Tech-Southern Piedmont Agricultural Research and Extension Centre
Wednesday, 13 May 2015

 

10:00 Chairman’s Welcome.
10:05 GAP – where the programme is now Jane Starnes, GAP Connections
10:35 The importance of heat not burn to leaf growers? Dr. Blake Brown, North Carolina State University
11:05 How Policy Impacts Tobacco Graham Boyd, Tobacco Growers Association of North Carolina
12:00 Innovating Leaf Storage: quality preservation and protection against insect infestation. Sanne van Rennes, Oxy-Low Systems
12:30 An update on the FCTC Dr. Antonio Abrunhosa, ITGA
14:00 Pest-host interactions in IPM of Cigarette Beetle, Lasioderma serricorne, its Effective monitoring and fumigation methods for successful control Dr. Muhammad Saeed, University of Haripur, Khyber Pakhtunkhwa, Pakistan

 

Registering for the conference

CONFERENCE FEE = US$500*

SPECIAL EARLYBIRD DISCOUNT: Please note if you book and pay prior to or on 31st March 2015 a US$100* discount will be applied to your booking so you will be charged US$400* for your pass.

REGISTER NOW by downloading the conference registration form from the website or by emailing Alison Holman, alisonholman@quartzltd.com

* Please note conference rates will be subject to value added tax where applicable. Credit card payments will be processed by our head office in the UK in Sterling and therefore may be subject to a slight currency exchange rate differential.

WTNA Exhibitor Business Presentations

Included as part of your free-of-charge exhibition pass, you will be able to attend a series of Exhibitor Business Presentations.

The latest schedule of presentations is as follows, for latest updates please see the website – www.worldtobacco.co.uk/north-america

Tuesday, 12 May 2015

 

11:00 Marbach-Solutions for Tobacco Packaging Willie Knight Jr, Karl Marbach GmbH & Co. KG
11:30 Microwave Moisture Measuring Technology in the tobacco industry André Tews, Tews
12:00 Economic impact on Bangladesh Tobacco Abdul Kader, Akij Tobacco
12:30 TBC Ingo Terfloth, Riedel Filtertechnik
14:00 TBC Chris Zych, Garbuio Dickinson
14:30 Improved on-line moisture, nicotine and sugar measurement using modern NIR technology Stefan Tordenmalm, Perten
15:00 Tobacco packaging solutions – Innovations & Trends Daniel Pastewka, Schur Star Systems
15:30 TBC Rich Harley, Process Sensors Group

 

Wednesday, 13 May 2015

 

Time Slot

Speaker Name Presentation Title
11:00 James Cutforth, Domino Laser coding for Tobacco Retail Packaging
11:30 Jamie Daggett, Dagmar Enterprises Hand held moisture testing
12:00 Brian Greever, CPM Wolverine Proctor Modern Control in Thermal Processing

 

The above presentations are free to attend when you register online at www.worldtobacco.co.uk/WTNAinvite

Programme subject to change

 

EXHIBITOR LIST

See the latest products, technology and services available within the UK by visiting a wide range of exhibitors at WT North America 2015, including:

AIRCO DIET AS
AKIJ TOBACCO COMPANY
ANUP INTERNATIONAL (HK) LTD. THE ROLLING COMPANY
API LAMINATES LTD
ASIA PACIFIC INDUSTRIES CO. LTD
BMJ. PT BUKIT MURIA JAYA.
BUHLER AEROGLIDE
BULGARTABAC HOLDING AD
BURLEY TOBACCO GROWERS COOPERATIVE ASSOCIATION
CERULEAN
CHAM PAPER GROUP SWITZERLAND INC
CHEYENNE INTERNATIONAL LLC
CHINA TOBACCO INTERNATIONAL (NORTH AMERICA) INC.
CORRFLEXO
CPM WOLVERINE PROCTOR
DAGMAR ENTERPRISES
DARE TECHNOLOGY CO LTD
DCM USIMECA ATN
DELFORT GROUP SPECIALITY PAPERS INC
DERCO USA INC
DEUTSCHE BENKERT GMBH & CO KG
DOMINO USA
EVANS MACTAVISH MACHINE MANUFACTURING CO.
FI-TECH INC.
FOCKE & CO. (GMBH & CO. KG)
FUJIAN TAIXING SPECIAL PAPER CO LTD
GARBUIO DICKINSON
GD S.P.A.
GIMA TT S.R.L.
HAUNI MASCHINENBAU AG
HERTZ & SELCK GMBH & CO
INNOVIA FILMS LTD
JERRY BROTHERS INDUSTRIES INC
JIANGSU RUIJIA CHEMICAL CO LTD
JINAN ACETATE CHEMICAL CO LTD
JOMAR TOBACCO
KARL MARBACH GmbH CO KG
KÖHL MASCHINENBAU GMBH
KOHLTRADE TOBACCO TRADING
LANDEN STRAPPING CORPORATION INC.
LOCKWOOD PUBLICATIONS, INC
LOGOPAK SYSTEME GMBH & CO KG
LONGYOU TECHMAY PAPER CO. LTD
MANE SUISSE SA
MAX SCHLATTERER GMBH & CO. KG
MENZEL FISHBURNE
MIQUEL Y COSTAS
MOISTTECH CORP
MUDANIANG HENGFENG PAPER CO. LTD
MUNDET INC.
NANYANG BROTHERS TOBACCO CO. LTD.
NASTA S.R.L.
NDC TECHNOLOGIES
NICOS GLEOUDIS KAVEX S.A.
PARVOMAY BT AD
PERTEN INSTRUMENTS AB
PHILIP MORRIS USA – AN ALTRIA COMPANY
PHILIP MORRIS USA – AN ALTRIA COMPANY
PIEDMONT
PROCESS SENSORS CORP
PT ARGHA KARYA PRIMA INDUSTRY TBK
PUSHI INTERNATIONAL LTD
RIEDEL FILTERTECHNIK GMBH
SAGAER GROUP LTD
SCHUR STAR SYSTEMS GmbH
SENZANI BREVETTI S.P.A SENZANI GROUP S.R.L
SHANGHAI BINHOO
SUNSHO PHARMACEUTICAL CO. LTD
TAGHLEEF INDUSTRIES
TEWS ELEKTRONIK GMBH & CO. KG
TIAN HE TOBACCO INT’L HK CO. LTD
TOMRA SORTING NV
TREOFAN USA
TRIERENBERG HOLDING AG
TRIERENBERG HOLDING AG
UAB ‘NEMUNO BANGA’
UNIQAIR
UNITED TOBACCO COMPANY
UNIVERSAL LEAF TOBACCO COMPANY
UPPER BOND
ZHEJIANG YOUFENG PACKING MATERIAL CO LTD

 

Exhibitor list accurate as at 1 March 2015

For further updates please see

www.worldtobacco.co.uk/north-america

Modify the Risk, Enhance the Future

Opinion: Modify the Risk, Enhance the Future

By

Lou Maiellano, President, TAZ

In late November, I saw something I never thought they’d see: The New York Times printed a story about a tobacco company without its usual vitriol and animosity. The story, “A Lesser Warning? Maybe,” detailed the efforts of Swedish Match to “do something that no (tobacco) company has done before: spur a reshaping of American tobacco policy and regulation, and the conventional wisdom around it.

By submitting copious filings for review and analysis, Swedish Match is requesting that the FDA allow it to market its snus products as ‘modified risk tobacco products.’ ” The article goes on to say that Swedish Match is in some ways paving the way for other tobacco companies and other tobacco products to provide evidence that their products promote tobacco harm reduction.

Swedish Match needs to be applauded for taking this unprecedented step, incurring significant costs and investing other resources in this endeavor. Also, the FDA needs to be acknowledged for taking the filing seriously and for going on the record, as Center for Tobacco Products (CTP) director Mitch Zeller has, in supporting methods that permit cleaner, less harmful methods of nicotine delivery.

If this strategy with the FDA is successful and it results in Swedish Match being allowed to market and sell its snus  products with packaging and labeling stating that its products are less harmful than other forms of tobacco, then we will have reached a watershed moment in the tobacco industry.

An Important Move

Many of us in the industry have known for a long time that there is a continuum of risk among tobacco products. The FDA’s CTP has acknowledged this. Unfortunately, few other important groups made the acknowledgment—primarily public health groups, federal and state legislators and certain academics and researchers who have historically made their reputations and their incomes attacking, restricting and seeking to ban tobacco of all shapes, sizes and types.

For them it makes no sense to admit to anything with respect to tobacco, much less that some forms are less harmful than others. But despite the critics, there are also reasonable and responsible health organizations and professionals who recognize that modified risk is well worth the effort.

So this raises the question: Why is this move by Swedish Match so important to the industry? It’s important for a number of reasons.

First, it highlights what it never hurts to state: that there are responsible tobacco companies who want to work with legislators and regulators when it’s appropriate. The modified-risk category was established in 2009’s Family Smoking Prevention and Tobacco Control Act. The fact that it was written into the legislation, then passed and signed, demonstrated that many in Congress and some in the administration had an appreciation that modifying tobacco risk was both achievable and worthwhile. It’s a sentiment clearly shared by Swedish Match, its directors and management.

Second, it offers every tobacco company an opportunity to seriously consider this route for one or some of its products. We all know that the tobacco trade has worked hard in other areas at the behest of legislators, notably in the area of restricting sales to minors, responsibly paying our taxes and, within reason and within the law, labeling and marketing our products. Continuing to research and develop ways to modify the harm associated with tobacco and nicotine delivery is yet another way to show our willingness to remain responsible and relevant.

Finally, it also makes sense that distributors and retailers look at these products as they come to market and commit to stocking and merchandising them. Companies willing to commit resources to securing FDA approval for their modified-risk tobacco products deserve the support of the entire supply chain.

Heady Times

There is no question that the tobacco landscape had changed irrevocably over the past five years. And there is certainly no question that many more changes are imminent. Companies such as Swedish Match are on the forefront of many of these changes. Other new products and new technologies are also on the market, and many more are promised down the line.

It’s an exciting time to be in the tobacco business, despite the rules, regulations, restrictions and roadblocks around the category. But it’s exciting only as long as we in the industry are willing to invest resources and support those who do.

If we are willing to do this right, it won’t just be Swedish Match who receives the positive New York Times coverage—it just might be the entire new, improved tobacco industry.

http://www.cspnet.com/print/csp-magazine/article/opinion-modify-risk-enhance-future

Vapor Tobacco Manufacturing LLC Announces Launch of Certified Organic eTron® 3T™ E-Liquid including Organic-filled Disposable E-Cigarettes; Industry First for the Vapor Industry

FT. LAUDERDALE, Fla., Dec. 15, 2014 /PRNewswire-USNewswire/ — Vapor Tobacco Manufacturing LLC (“VTM”) announced the launch of the first certified organic e-liquids for the vapor industry — eTron® 3T™. VTM’s organic products have been certified organic under the United States Department of Agriculture’s National Organic Program.  As certified organic products, VTM’s e-liquids carry the familiar USDA Organic Seal.

VTM has launched its organic e-liquid in two different tobacco flavors, American Blend and Virginia Blend.  Both flavors are offered in full and light strengths (Red and Gold).  VTM also offers organic menthol (Green).  VTM’s certified organic liquids are sold in  child resistant 15 ml glass bottles as well as in pre-filled eTron® 3T™ disposable e-cigarettes.

VTM’s eTron® 3T™ organic products will formally debut to the trade at the January Tobacco Plus Expo in Las Vegas, NV (http://www.tobaccoplusexpo.com).

VTM plans to soon add responsible, adult-friendly flavors, also in certified organic form.

VTM’s certified organic e-liquid is made using a patented process.  This patented process uniquely allows for the manufacture of organic e-liquid because conventional e-liquids typically rely on ingredients that are not organic.  In contrast, VTM’s tobacco e-liquids are made from just three ingredients:  organic tobacco, organic glycerin and water.

VTM’s Virginia Blend, is made from organic flue cured tobacco.  VTM’s American Blend, is made from a blend of organic tobaccos.

Founder and inventor Tom O’Connell commented:   “We are proud to launch the first certified organic e-liquid for the vapor market.   Vapor consumers have not had an organic choice until now.

“Moreover, our organic product offers the most natural tobacco flavor in the vapor industry.  It tastes like tobacco because it is made from tobacco – certified organic tobacco.

“Having been in the vapor industry for years and before that in cigarettes and smokeless tobacco, I know that flavors like caramel are substituted for real tobacco flavor in e-liquids.   Vape shops often rotate smokers through a series of different flavors – simply because none of the available flavors actually fit the tobacco taste that the smoker is looking for.   For adult smokers who are looking for tobacco satisfaction from vapor, our eTron® 3T™ liquid is the answer.   They’ll know the difference from the first puff.”

Joseph Fuisz, co-founder and Member, commented:  “Vapor innovation has focused on incremental device improvements while the actual e-liquid consumed has not materially changed apart from provenance – the move from Chinese to US and European-made liquids.    Moreover, strong vapor category growth has masked the relatively low conversion rate for smokers who try vapor.   The vast majority of smokers do not stay with vapor and the principal reason is the poor acceptance of product taste.   It is precisely this market – the adult smoker looking for vapor alternatives – that eTron® 3T™ organic e-liquids are geared to.  Certified organic eTron® 3T™ e-liquid is a dramatic step forward for the vapor industry.

“The USDA Organic Seal is regulated by federal law and limited to organic products that are independently certified to meet USDA’s strict organic criteria.    We proudly carry the USDA Organic Seal on our products as our promise to customers – that our products are made from the finest organic ingredients.  eTron® 3T™ represents the finest quality in e-liquids and delivers great tobacco satisfaction to the US vapor community. In addition, our e-liquids are similarly certified organic for the European market – and thus entitled to carry the European organic leaf logo.  We are looking for European distributors as a result.”

Jay Kusma, director of c-store accounts, stated:  “I am very proud to bring eTron® 3T™ to our lead convenience store accounts.  This industry first organic product has a taste profile that is superior to anything available on the market today.   It is a major step forward for customers, and we are offering a compelling value proposition for consumers and our chain store partners.”

VTM’s products will initially be sold under the eTron® and 3T™ (True Tobacco Taste)  trade names.   VTM will entertain private label requests for a select number of large accounts subject to completing the organic certification process for such additional brands.   Vapor store accounts will be serviced by Global Vapor Corporation, Ft Lauderdale Florida.  Convenience store accounts will be serviced by US Vapor Corporation, Jupiter Floridawww.truetobaccotaste.com