Impact of Terminating Membership of Traditional Tobacco Companies

On September 1st, the UK Vaping Industry Association (UKVIA) issued a statement announcing the termination of membership for traditional tobacco companies, including the four major international tobacco companies - British American Tobacco (BAT), Imperial Brands (ITG), Japan Tobacco International (JTI), and Philip Morris International (PMI).

This decision has sparked speculation among external observers on why the termination of membership for traditional tobacco companies was announced at this time, and how these traditional companies have been influencing the e-cigarette industry. Additionally, there are concerns about the potential impact of this decision on the e-cigarette market in the UK and whether it will affect Chinese e-cigarette manufacturers and their collaborations. 2FIRSTS conducted an interview with John Dunne, the Executive Director of UKVIA, to discuss these matters.

John Dunne｜Source: UKVIA

Dunne, who had worked at Altria Group in the US for over 12 years, had a life-changing moment when his daughter came home from school one day and asked him, "Daddy, why do you make a living by killing people?" Since then, he shifted his career to the e-cigarette industry and in 2016, he became the General Secretary of the UK Vaping Industry Association.

The Rationale behind Decision-making

According to publicly available information, PMI was one of the founding members of UKVIA, while tobacco giants such as BAT, ITG, and JTI joined the association subsequently after its establishment. In a membership list from December 2020, the names of the four leading international tobacco companies can be clearly seen.

Membership list for 2020｜Source: UKVIA

However, as of September 1, 2023, the UKVIA has removed the four aforementioned companies from its membership list. According to a survey conducted by 2FIRSTS, the UKVIA currently has 38 official members in the e-cigarette industry, including JUUL, GEEK BAR, INNOKIN, IVG, RELX, SMOORE, and others.

Membership list for 2023｜Source: UKVIA

According to Dunne, spokesperson for 2FIRSTS, the decision to terminate the membership of all tobacco companies was initiated by members of the association's board of directors. "This led us to announce the termination of membership for all tobacco companies on September 1," Dunne stated.

Dunne affirmed the positive impact of UKVIA on the e-cigarette industry in the UK, "Over the past seven years, UKVIA has played a significant role in raising awareness about the use of e-cigarettes, during which time smoking rates in the UK have reached record lows."

However, he admitted that the association underestimated the impact of restrictions on tobacco companies on its engagement with key stakeholders, particularly those in the public health sector.

Due to this point, there have been disagreements with the association's ideology. Dunne believes that in order to achieve the "2030 Smoke-free UK target," the key factor is for smokers to switch to e-cigarettes. "As the largest industry association in the e-cigarette industry in the UK, it is crucial for the association to have extensive engagement with all stakeholders responsible for achieving this goal," Dunne said.

Why Make the Decision Now?

However, this has raised a question - if the UKVIA was initially established to promote the development of the e-cigarette industry, then why weren't traditional tobacco companies rejected from joining at the outset? PMI even became an initial member of the association.

In response to this, Dunne explained that at the initial stage of the association's formation, they aimed for inclusivity, representing the entire industry, including the e-cigarette business owned by tobacco brands.

In fact, all four major tobacco companies have made strategic moves to seize a share of the electronic cigarette market.

For instance, PMI owns the vape brand VEEV, BAT owns the vape brand VUSE, ITG owns the vape brand myblu, and JTI, on the other hand, has the vape brand Logic.

With the growth of the e-cigarette industry, conflicts have arisen between tobacco companies, which derive their main profits from traditional cigarettes, and pure e-cigarette enterprises. As a result, the association hopes to remain independent from any involvement or funding by tobacco companies for any of their e-cigarette brands.

We are increasingly realizing that it is in the best interest of the industry for associations to be independent from any involvement or sponsorship by tobacco-owned e-cigarette brands.

Dunne also repeatedly stressed that UKVIA has underestimated the impact of tobacco company restrictions on the association's contact with key stakeholders, especially those in the public health sector.

Developments and Changes of E-Cig Industry?

The association has swiftly terminated the membership of traditional tobacco companies through a resolution. Is this related to the development trends in the e-cigarette industry in the UK?

He expressed to 2FIRSTS that in order to advance the crucial role that the government believes e-cigarettes play in a smoke-free world, it is necessary to enhance engagement with a range of key stakeholders, including policymakers, legislators, public health officials, and local authorities.

Will the influence of the traditional tobacco industry hinder the progress of the "smoke-free" agenda in the UK?

Dunne stated that he does not believe traditional tobacco companies have hindered the government's "smoke-free" agenda, but he acknowledged that these restrictions have had an impact on the association's interactions with key stakeholders such as public health sectors.

He emphasized that the involvement of the largest tobacco trading organization in the UK is crucial to achieve the "smoke-free" goal by 2030, especially considering the current lag in progress towards these targets and the significant amount of work still to be done.

Dunne also stated that UKVIA believes e-cigarettes to be the best opportunity for reducing smoking-related deaths in the UK. Currently, 250 people die every day in the country due to traditional cigarette use, resulting in potential savings of billions of pounds for the NHS each year. The estimated cost to the NHS caused by smoking is approximately £2.6 billion annually.

"We hope that by fostering greater engagement, this will aid the industry both in the short and long term."

Advocacy for Chinese Vaping Industry

A large number of UKVIA's member companies have Chinese origins, but the current British society is embroiled in controversy regarding the treatment of e-cigarettes. This year, calls to ban disposable e-cigarettes have started to impact governmental bodies.

Following the announcement by the French Prime Minister to ban disposable e-cigarettes by the end of 2023, activists in the UK are calling for a similar ban. Currently, over 150,000 individuals have signed a petition organized by Greenpeace, demanding the prohibition of disposable e-cigarettes.

Prior to this, UK Prime Minister Sunak criticized e-cigarette companies in a news interview for excessive promotion targeting children and stated that the government has taken action to crackdown on illegal e-cigarette sales.

In terms of collaboration among e-cigarette manufacturers and the interests of e-cigarette industry practitioners, Dunne stated that the UK E-Cigarette Industry Association will actively seek engagement with policymakers, members of Parliament, and public health officials to safeguard the interests of the e-cigarette industry.

Dunne also emphasized that Chinese e-cigarette manufacturers have a good relationship with the association.

He stated that the United Kingdom is the primary market for the Chinese e-cigarette industry, and the association is fully capable of supporting the interests of the Chinese e-cigarette industry. Chinese e-cigarette manufacturers can still collaborate with e-cigarette brands owned by traditional tobacco companies.