TPE24 | Interview with Spree Bar: A “PMTA-exempt” Vape Product Targeting US Convenience Store

On Jan 30 afternoon at the TPE Educational Sessions preceding the three-day exhibition, Henry Sicignano, the president of Charlie's Holdings Inc., delivered a keynote speech introducing their newly distributed product, Spree Bar, a disposable vaporization product with a capacity of 6000 puffs and a detachable, rechargeable battery, as well as nine flavors available. On Feb 1, the second day of the TPE trade show, 2FIRSTS had an exclusive interview with Henry on this novel product.

What sets Spree Bar apart is its active ingredient, a substance called Metatine, instead of Nicotine. Henry explained that Metatine is not the chemical name but a trademark of the substance, which is very much similar to " 6-methyl Nicotinamide".

6-methyl Nicotinamide is an intermediate product in the synthesis of nicotine, according to an industry insider. Henry stated that they chose Metatine over 6-methyl nicotinamide because Metatine better brings the flavors coming along the e-liquid, providing consumers with a “nicotine vaping” experience.

As Metatine was still not subject to the regulatory scope of the FDA, the company took a decisive step to launch Spree Bar in last October. According to Henry, the product has achieved impressive sales results in the US, and they are preparing for a new marketing step in 2024 which will encompass around 15,000 convenience stores and supermarkets nationwide.

Henry presented a promotion flyer highlighting the characteristics of three currently available PMTA-approved products – VUSE, JUUL, and NJOY: tobacco flavor only, subject to tobacco tax, and relatively high prices. Being a "completely non-nicotine product," Metatine is neither synthesized nicotine nor a tobacco extract, making it for now still exempted from PMTA regulations and tobacco tax.

The product has been selling legally with various flavors at lower prices in "virtually all 50 states*," as Henry explained. He described Metatine as "a market worth over a billion dollars."

(*Editor’s note: Flavor restrictions set by some US states target "flavored vapor products" rather than "flavored nicotine products." Spree Bar, as a vapor product, can not be marketed freely under the former condition.)

2FIRSTS found that their cartridge-only product is priced at $9.95 for retail, while a starter kit containing the battery, cartridge, and charging cable would cost around $20.

Henry mentioned that Spree Bar's product didn't undergo vivo toxicological testing before launch. However, he asserted that Metatine's toxicity must be lower than that of “oral nicotine” given the similarity between Metatine and nicotine. Additionally, the packaging includes a warning against use by pregnant women and prohibits sales to consumers under 21.

In terms of user experience, Henry stated that Spree Bar's product is "indistinguishable from nicotine e-cigarettes," facilitating the transition for e-cigarette consumers.

When asked if he's concerned about competitors introducing similar products to carve up their market share, Henry remains optimistic about Spree Bar's market prospects, believing that their over-a-year-long preparation before launch has likely secured a strong position in major Key Account channels before competitors could make similar moves.

Some Chinese e-liquid manufacturers are exploring this technology, while due to concerns about public opinion and regulatory risks, relevant products have not yet been introduced to the market, according to an insider.