Global E-cigarette Industry Weekly Update (Nov.7-13)

1. Hong Kong Council on Smoking and Health proposes to introduce a lifetime ban on buying cigarettes for every Hong Kong citizen born after 2009, to hit the target of establishing a “smoke-free generation” within the 5-year SAR tenure, reports South China Morning Post.
2. The Chinese e-cigarette index has seen a vigorous rise since the adoption of the consumption tax with the majority of stocks of the index escalating, reports sfcnews.com.

North America

• A study by the public health department of the city of Columbus finds that tobacco retailers are found more densely in low-income minority communities, where voice is heard lauder to bar menthol cigarettes. The incidence of diseases related to smoking is higher in those communities, such as stroke, COPD, and asthma.

• According to the statistics by the health department of Utah, 17% of native Americans have ever smoked in 2021, more than twice compared to 7% of the state’s average.

• Since the introduction of nicotine pouches in the US in 2016, according to a JAMA study, the sales revenue skyrocketed by 300 times. 

Europe

• PMI’s interest has been undermined with an estimated 20.6 billion hryvnia (US$ 562 million) lost as the Ukraine War, inflation, and income decrease boosted the illicit tobacco market in the country.

• A Norwegian study titled “smoking cessation aids and strategies: a population-based survey of former and current smokers in Norway” states that smokers tend to try out multiple cessation strategies and tools while trying to quit smoking.

Middle East

• Jordan remains the country with the highest smoking rate in the world, confirms WHO. For Jordan households, the monthly expenditure on tobacco outnumbers that of food.

North America

• Senator John Hickenlooper of Colorado calls on the founding of a professional committee to regulate marihuana, the legalization of which was in effect in the state 10 years ago. John plans to hand the proposal over as an act of Congress to ready the federal marihuana reform.

• California voters passed an act 58% to 31% on Nov.8 to uphold the ban on flavored tobacco and e-cigarette products.

• Americans for Tax Reform (ART) suggests FDA take reforms and criticizes its “negligence”— failing to fulfill congress’s authorization to protect public health.

• Maryland and Missouri become the 20th and 21st states to legalize recreational marihuana for adults on Nov.8. Arkansas, North, and South Dakota, on the other hand, failed to join the league.

• To crack down on possible allurement and scamming caused by the names of e-juice, the FDA pledges to regulate the naming of e-liquid products. Some states have banned using food terms in tobacco products.

• Canada is stepping up regulation on e-cigarette production and sales. From October 1, manufacturers and importers must be registered or licensed and have tax badges attached to e-cigarette products. The transitional period falls from Oct.1 to Dec. 31, and on Jan 1, 2023, only authorized products can be sold by retailers.

Europe

• The Estonia Republic may introduce a ban on the import and sale of disposable e-cigarettes to protect minors from Next Generation Tobacco products.

• The public health committee of the Belgian parliament approves barring all tobacco vending machines in the whole hotel and catering business (e.g., restaurants and bars).

• Dutch activists demanded to remove all cigarette products from the market. A “strong sign” indicating that filtered cigarettes sold in the Netherlands may violate the EU’s restriction on tar, nicotine, and carbon monoxide, says a Rotterdam judge.

Oceania

• Te Whatu Ora National Public Health Service recently ran controlled purchase operations on 39 retailers in Canterbury in recent months. It is a move that has been welcomed by the local consumer advocacy group. The need for enforcement highlights the failure of restricting the sale of flavored products, which is believed to lie behind the growth of disreputable vendors prepared to break the law.

Africa

• South African vape prohibition backfired – a new study reveals a flourishing black market despite the enforcement by the government.

SMOORE

International SG rating agency Morningstar announced its ESG rating report, with Smoore ranking first among global electronic atomization companies and its ESG score dropping from 27.9 to 24.6 (the lower the score, the better the performance). In addition, in the ESG rating published by the world's largest index company, Ming Sheng (MSCI), Smoore was also ranked first among global electronic atomization companies.

Geekvape

On November 10, Geekvape held an e-cigarette technology online seminar with the theme "Leap Farther" to discuss new trends in the advancement of e-cigarette technology.

PMI

PMI has added eight new carbon-neutral production centers in the past year, from 5 in 2021 to 13 in 2022, and said the company is on track to "achieve 100% carbon neutrality in its plants by 2025.

R.J. Reynolds

• In early September, a federal jury found that Reynolds Vapor Co.'s Vuse Alto product infringed three Altria patents, resulting in a recompense of $95.23 million to Altria. Reynolds protested the verdict and filed an appeal for a new trial.

• R.J. Reynolds sued California soon after the state passes the tobacco and vape flavor ban. Reynolds and other tobacco companies tried to file a suit as early as last year.

KT&G

• On Nov.9, KT&G announced to launch new HNB product to diversify its product spectrum which is mainly cigarettes.

• Currently, KT&G earns 90 percent of its overall sales from the cigarette business division and the remaining 10 percent from the heat-not-burn division.

• From January to September, net income climbed 21 percent to 1.06 trillion won from 878.58 billion won in the same period of last year.