E-Cigarette Companies Shift Operations Offshore to Bypass FDA Regulations, Including Lost Mary and Elfbar Brands

Feb.25.2025
E-Cigarette Companies Shift Operations Offshore to Bypass FDA Regulations, Including Lost Mary and Elfbar Brands
Reuters reports that some e-cigarette companies have shifted operations offshore to bypass U.S. regulations. Heaven Gifts moved its Lost Mary brand to a British Virgin Islands firm after the FDA banned Elfbar in 2023, while Ludicrous Distro began distributing unauthorized third-party products. The FDA has denied millions of licenses for new nicotine devices, particularly flavored vapes that appeal to teenagers. Despite bans, brands like Elfbar continue to be popular among youth vapers in the U.S

According to Reuters, several e-cigarette companies targeted by U.S. authorities have adapted their business strategies to bypass regulations, including shifting operations to offshore firms. This move has made it more difficult for the U.S. Food and Drug Administration (FDA) to prevent the importation of unauthorized vapes into the country. The FDA has been closely monitoring these changes, which include companies altering product labels or restructuring their businesses to avoid detection. However, the FDA did not specify which brands or companies were involved.

 

One notable example is the Chinese vape giant Heaven Gifts, which transferred its U.S. operations for its Lost Mary brand to a British Virgin Islands (BVI) company, Wonder Ladies Limited. This shift occurred after the FDA banned several companies, including those based in China, the U.S., and South Korea, from importing its flagship Elfbar brand in 2023. Despite the ban on Elfbar, Lost Mary remains available for sale in the U.S., signaling that the product is still being distributed despite not having FDA authorization.

 

Similarly, Ludicrous Distro, a Texas-based e-cigarette firm operating under the name American Vape Company, stopped selling its own unlicensed Esco Bars brand. Instead, the company began distributing a wider range of unauthorized vaping devices from third-party manufacturers. The company’s website reflects this change in focus.

 

Heaven Gifts’ spokesperson, Jacques Li, stated that the company had exited the U.S. market for its Lost Mary brand by transferring operations to Wonder Ladies, following the FDA’s ban on Elfbar. Li emphasized that the company was not attempting to circumvent FDA regulations, despite the move.

 

Ludicrous Distro, when asked about its decision to sell unauthorized products, did not provide a clear explanation. However, the company explained that it has always aimed to comply with the FDA’s evolving policies, which have created confusion in the industry.

 

The FDA has denied licenses for approximately 26 million new nicotine devices since October 2020, particularly targeting fruit and candy-flavored vapes, which the agency claims appeal to teenagers. The growing popularity of unauthorized products, such as Elfbar, has led to increasing concerns about youth vaping, with Elfbar becoming one of the most widely used brands among young vapers in the U.S. in 2024.

West Virginia Senate Backs Vape Tax Increase to Offset Income Tax Cut
West Virginia Senate Backs Vape Tax Increase to Offset Income Tax Cut
The West Virginia Senate approved a 10% personal income tax cut on February 22, 2026, with part of the revenue offset coming from increased excise taxes on vape and e-cigarette products.
News
Feb.23
Altria Announces Nationwide Retail Expansion of on! PLUS Nicotine Pouches
Altria Announces Nationwide Retail Expansion of on! PLUS Nicotine Pouches
Altria Group, Inc. announced the nationwide retail expansion of on! PLUS nicotine pouches, a product manufactured by Helix Innovations LLC, an Altria operating company. The product had already been available through e-commerce and participating retailers in North Carolina, Florida and Texas, began wholesale deliveries on March 16, 2026, and is expected to reach participating retailers nationwide starting March 23, 2026.
Mar.24 by 2FIRSTS.ai
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
On March 17, PMI U.S. announced an investment of about USD 50 million in a new Business Solutions Center in Tampa, Florida. The center is expected to create about 180 direct and indirect high-skilled jobs and will consolidate business solutions, distribution operations and customer service into one hub.
Mar.18 by 2FIRSTS.ai
Cambodia Siem Reap raid seizes over 10,000 e-cigarette items; two arrested
Cambodia Siem Reap raid seizes over 10,000 e-cigarette items; two arrested
Police in Siem Reap, Cambodia, seized 10,168 items of e-cigarette paraphernalia during a raid on February 28, 2026, and arrested two suspected sellers and owners of the premises.
Mar.03 by 2FIRSTS.ai
China Tobacco International (HK) Announces FY2025 Results: Revenue Reaches HK$14.58 Billion, Up 11.5% Year-on-Year
China Tobacco International (HK) Announces FY2025 Results: Revenue Reaches HK$14.58 Billion, Up 11.5% Year-on-Year
China Tobacco International (HK) Company Limited announced its audited results for the year ended December 31, 2025. Revenue was HK$14.58 billion, profit before taxation was HK$1.28 billion, and profit attributable to owners of the Company was HK$0.98 billion, with basic and diluted EPS of HK$1.42. The Board proposed a final dividend of HK$0.33 per share; together with an interim dividend of HK$0.19 per share, the full-year dividend totaled HK$0.52 per share.
Mar.06 by 2FIRSTS.ai
Daegu Jung-gu: liquid e-cigarettes with synthetic nicotine to be fined in nonsmoking areas under revised Tobacco Business Act
Daegu Jung-gu: liquid e-cigarettes with synthetic nicotine to be fined in nonsmoking areas under revised Tobacco Business Act
Daegu’s Jung-gu District announced on Feb. 10 that, following amendments to the Tobacco Business Act that explicitly classify liquid e-cigarettes containing synthetic nicotine as “tobacco” (effective April 24, 2026), the district will expand regulations to include fines for vaping such products in designated nonsmoking areas. The district health office said smokers/vapers could face an administrative fine of up to 100,000 won for using synthetic-nicotine liquid e-cigarettes in smoke-free zones
Feb.10 by 2FIRSTS.ai