Interview with Arcus Managing Director: Ban Will Lead to Black Market Surge, Manufacturers should Switch to Open Systems

Industry Insight by 2FIRSTS, edited by Sophia
Jan.30.2024
Interview with Arcus Managing Director: Ban Will Lead to Black Market Surge, Manufacturers should Switch to Open Systems
UK government announces complete ban on disposable e-cigarettes and restrictions on flavored and packaged refillable e-cigarettes.

On January 29th, the UK government announced a complete ban on the sale of disposable e-cigarettes, as well as restrictions on the flavors and packaging of refillable e-cigarettes. In light of this prohibition, 2FIRSTS conducted an interview with Robert Sidebottom, the Managing Director of ARCUS COMPLIANCE, a company specializing in assisting e-cigarette businesses with compliance certification in the UK.

 

Firstly, Robert Sidebottom expressed his views on the ban. He stated that the government's implementation of a disposable ban is an irresponsible act as it did not, and will never have any substantive effect anywhere in the world. Moreover, the ban could potentially lead to legal markets being squeezed, while the black market may quickly emerge. In his opinion, the government should adopt a more responsible and comprehensive approach to regulate the e-cigarette market instead of resorting to a simple ban.

 

When discussing which product categories may absorb the lost market share due to the implementation of the disposable ban, Robert Sidebottom mentioned that he sees greater potential in open-system products. At the same time, he also expressed optimism about some innovative products such as Sky Hunter by Happy Vibes, Instafill, among others.

 

Robert has also offered some suggestions to Chinese manufacturers to foster their future growth.

 

He suggested that companies needs to ensure compliance and strategically reposition themselves to expand presence in the open market.

 

Furthermore, he emphasized the importance of prudence in flavor selection and recommended that products adopt straightforward and direct naming methods. For instance, flavors like mint, tobacco, and fruit should be named simply as "Mint," "Tobacco," and "Fruit," respectively. Even when it comes to fruit flavors, it is advisable to choose clear and uncomplicated names such as "Strawberry," "Cherry," "Raspberry," and "Watermelon" for optimal communication.

 

Lastly, he recommended that the product avoids using fancy flavor names and refrain from adopting names that appeal to teenagers, such as avoiding names like "Unicorn Milkshake". Additionally, they should not imitate names from other industries, such as avoiding names like "Skittles" or "Energy", in order to avoid rejection in the UK market.

 

2FIRSTS will continue to monitor the updates on the disposable e-cigarette ban in the UK. Stay tuned for more information.

 


 

"UK Disposable E-Cigarette Ban" Series Report

 

Policy Updates
【1】UK Government Announces Ban on Disposable E-Cigarettes
【2】Original Text of UK Government's Disposable Ban Announcement

 

Market Dynamics
【1】After UK Disposable Ban: Retailers Clearing Stock, Major Distributors Turning to E-liquids and Open-Systems
【2】UK Announces Disposable E-Cigarette Ban: Smoore and Yinghe Technology Stock Prices Decline

 

Various Perspectives
【1】Black Market or Opportunity? Insiders' Perspectives on UK Disposable Ban

【2】Interview with Arcus Managing Director: Ban Will Lead to Black Market Surge, Manufacturers should Switch to Open Systems

 

Business Review

【1】Disposable Ban Impact: Is Smoore's Strategic Layout Empty Again?

 

 

 

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippine lawmakers are considering an overhaul of the country's vape excise-tax regime to eliminate the wide gap between taxes on nicotine salt and freebase nicotine liquids and reduce incentives for misdeclaration. House Bill 5364, filed by Rep. Rufus Rodriguez and Rep. Maximo Rodriguez Jr., would impose a unified ₱10-per-milliliter tax on vapor products, with 5% annual increases beginning in 2027. Rodriguez says the proposal could generate an average ₱6 billion in annual collections from 2027 through 2030. The debate comes as the Philippine government considers tobacco, vape and other health-tax reforms to help offset around ₱66 billion in revenue expected to be forgone under a proposed tax-relief package.
Aug.18
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
U.S. President Donald Trump has named Pastor Darrell Scott to serve as an adviser on tobacco health issues on the Centers for Disease Control and Prevention’s Advisory Committee to the Director. Trump said Scott would focus on the burden of tobacco-related disease and help examine ways to protect Americans from dangerous tobacco products while supporting solutions that reduce harm. Scott’s public career has largely centered on faith leadership, community advocacy and politics.
Sep.02
China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China’s official Xinhua News Agency reported that Liu Sanjiang, deputy head and Party group member of China’s tobacco regulator, led a delegation to Laos from July 31 to Aug. 2, 2026, for discussions with Lao authorities on combating cross-border illegal tobacco trade. The two sides discussed areas including law enforcement cooperation, information sharing and efforts to address tobacco-related illegal activities such as counterfeiting and smuggling. The visit highlights cooperation between Chinese and Lao authorities on illicit tobacco control.
News
Aug.05
Exclusive Analysis | Smoore H1 Revenue Rises 19.9% Amid Growth Concentration, Profit Pressure and Slowing Momentum
Exclusive Analysis | Smoore H1 Revenue Rises 19.9% Amid Growth Concentration, Profit Pressure and Slowing Momentum
Smoore’s first-half 2026 revenue rose 19.9%, but the results revealed growing structural risks beneath the headline growth. Heat-not-burn contributed about 61% of incremental revenue and remains driven largely by one core customer, while traditional vaping markets diverged, own-brand growth slowed and China enterprise revenue declined further. Gross profit and adjusted profit lagged revenue growth, while second-quarter revenue growth slowed to about 1.9%, putting greater focus on the quality, concentration and sustainability of Smoore’s expansion.
Capital Markets
Aug.20
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia’s tobacco excise debate is increasingly exposing differences within the governing Labor Party. New South Wales Labor Premier Chris Minns reaffirmed on September 8 that he supports reducing tobacco excise, arguing that current tax settings are pushing consumers toward cheaper black-market cigarettes. Federal Health Minister Mark Butler continues to oppose an excise cut, while Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino have recently stopped short of ruling out future changes. The divergence follows the opposition Coalition’s proposal to cut tobacco excise by 80%.
Sep.08
Product | Philip Morris Japan Launches Ginza-Exclusive IQOS ILUMA i PRIME, Limited to 1,814 Units at First Global Flagship
Product | Philip Morris Japan Launches Ginza-Exclusive IQOS ILUMA i PRIME, Limited to 1,814 Units at First Global Flagship
Philip Morris Japan (PMJ) launched the IQOS ILUMA i PRIME Ginza Limited Model Set in Tokyo on September 4, 2026, alongside the opening of IQOS Flagship Ginza, the brand’s first global flagship store. The Oasis Blue edition is limited to 1,814 individually numbered units, with the figure derived from the store’s address at Ginza 1-8-14. The set also includes two Yamanaka-nuri glasses and special packaging, priced at JPY 11,980 and sold exclusively at the Ginza flagship.
Sep.07