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E-CIGARETTE BAN: Hennepin County property now off-limits

by Bill Keller
Smokers may be able to smoke in vehicles and their homes, but there are fewer public places to light up. Now, even electronic cigarettes are banned on Hennepin County property.
Most private buildings have a rule about smoking near entrances, but a new law is cutting a new way to cut cravings out of the picture.
“I was just a little disappointed that the county would take that stand on them because people are trying to quit,” said Donna Bratulich.
E-cigarettes seemed to fill a void as smoking restrictions continued to mount by offering a way to get a nicotine fix without breaking the law, but Hennepin County employees got an e-mail clarifying the tobacco-free property policy on Tuesday that listed the devices on a list of prohibited products.
“We are proactive. We’ve been proactive here,” said Hennepin County Administrator David Hough. “We want to make sure that our workforce and the residents, clients in the building are being protected.”
Hough said the decision was made after concerns were raised last week even though e-cigarettes do not violate the state’s Clean Indoor Air Act.
“The law is very specific in how it defines smoking as involving the combustion of tobacco or other materials to create smoke,” Dan McElroy, of the Minnesota Restaurant Association, told FOX 9 News. “So, an e-cigarette is not a cigarette or smoking device in the eyes of the law.”
McElroy told FOX 9 News he is not aware of any restaurants that ban e-cigarettes, but he has fielded several questions on the topic.
“The difference in e-cigarettes is they don’t create second-hand impact,” he explained.
Hennepin County’s decision may mark the first ban on nicotine regardless of where it comes from, and it applies to anyone on Hennepin County property regardless of whether the person works there or not.
Metro Transit is also in the process of updating its rules to make using e-cigarettes on a bus or light rail a violation of its code of conduct.
Read more: E-CIGARETTE BAN: Hennepin County property now off-limits – KMSP-TV http://www.myfoxtwincities.com/story/22973287/e-cigarette-ban-hennepin-county-property-now-off-limits#ixzz2ajIG8Ki4
 

C-stores Could Hit $1B in E-Cigarette Sales This Year

NEW YORK — New Nielsen convenience store data indicates that electronic cigarette sales could hit $1 billion this year, with that figure jumping to $1.7 billion when factoring in online sales.
Leading e-cigarette sales at c-stores is Lorillard Inc.’s blu eCigs brand, according to Bonnie Herzog, managing director of tobacco, beverage and consumer research at Wells Fargo Securities LLC. She cited Nielsennumbers showing that blu captured 39 percent of the dollar share in the convenience channel during the most recent four-week period ended July 6, followed by NJOY with a 30.1-percent share.
Looking at extended all-outlet coverage (XAOC) from New York City-based Nielsen, blu came in first again with a 44.5-percent share. Other leading brands in the XAOC channel include FIN at 20.6 percent, Mistic at 11.7 percent and NJOY at 10.8 percent.
“We believe e-cigarette consumption could surpass traditional cigarettes within the next decade and the combined operating profit pool could generate a CAGR [compounded annual growth rate] of 7 percent over the next decade,” Herzog stated.
While electronic cigarette dollar sales grew 189.6 percent in the four-week period ended July 6, according to Nielsen, total cigarette dollar sales in the U.S. convenience channel grew 1.2 percent over the same timeframe, vs. 1 percent in the last four-week period and 1.3 percent in the prior year.
Unit sales posted their best results – meaning their lowest decline — of the past 12 periods, Herzog said, adding that this was likely driven by moderating net price realization.
“We believe the recent cigarette list price increase of 6 cents per pack is now reflected in the c-store channel. Despite somewhat tepid price realization for retailers per the Nielsen data, we expect net price realization for the manufacturers to accelerate to about 4 percent in [fiscal year] 2013, which should offset volume declines, leading to positive dollar sales,” she explained.
As for individual cigarette brands, all three Big Tobacco companies — the Altria Group Inc. Reynolds American Inc. and Lorillard — saw positive numbers during the period, she added.
http://www.csnews.com/top-story-tobacco-c_stores_could_hit_$1b_in_e_cigarette_sales_this_year_-64164.html

University of Texas at San Diego to Study Health Effects of E-Cigarettes

San Francisco, CA – William Cooke and Donovan Fogt, UTSA kinesiologists, have received a $30,000 seed fund from the University to help investigate the health effects of electronic cigarettes. They will be teaming up with Assistant Professor Caroline Rickards at the University of North Texas to help gather data about the effects of e-cigarettes and the body’s basic physiological health.
e-Cigarettes have been around for about six years, and have been marketed as an alternative to smokers who want to decrease their risk of serious health risks of smoking, but still enjoy the effects of nicotine. The devices have been aggressively marketed to make people believe that there are little-to-no side effects of inhaling pure nicotine, but in reality, very little research has been done to study the effects of inhaling vaporized nicotine.
The scholars will be working under the hypothesis that vaporized nicotine “stimulates the human nervous system in ways that could seriously impact daily living”. They believe that the inhalation of pure nicotine has the potential to increase a person’s resting metabolism, making exercise problematic, just as in smoking traditional cigarettes. They also are hypothesizing that e-cigarettes will prevent the cardiovascular system from properly system from properly regulating arterial pressure.
If the hypothesis is correct, additional research will be needed to help understand the immediate effects of vaporized nicotine, as well as the impact of dosage in each device, and age on the e-cigarette user’s health.
http://www.sbwire.com/press-releases/university-of-texas-at-san-diego-to-study-health-effects-of-e-cigarettes-292135.htm

The electronic cigarette ignites debate

By Michael Crusan – email
Eau Claire (WQOW) – Electronic cigarettes are technically smoke free, but some businesses and health experts are drawing the line to put them out.
This alternative to smoking is receiving mixed reviews in Eau Claire.
“Have the brown filter, the white battery, I mean it looks just like you’re naturally smoking a cigarette and even the end lights up red,” explains regional manager of Eau Claire Tobacco Shop, Jessica Hartkemeyer.
A red light leading restaurant owners and health officials to say stop.
“Electronic cigarettes, to me, is smoking.  It’s the same thing, it’s the same type of scene it is.  In all our restaurants where we have non-smoking areas, it will be non-smoking for electronic cigarettes,” says Eau Claire restaurant owner Lisa Aspenson.
Especially when the federal government isn’t controlling what’s in a cloud of e-cig vapor.
“The FDA has not evaluated it for the content of nicotine or for other dangerous drugs,” says Mayo Clinic Health System Nurse Practitioner, Kim Edson.
“The FDA, I think, is avoiding putting their stamp of approval on this because it’s not necessarily a quit smoking device.  It can be used as a replacement that’s just a little bit cheaper,” says Hartkemeyer.
So what does your average e-cig contain in a puff of vapor?
“USP grade liquid nicotine, kosher certified natural and artificial flavors,” says Hartkemeyer.
Much shorter than the list of ingredients in a cigarette, but still not approved by doctors.
“For the intent of stopping smoking we don’t recommend it because it still promotes the behaviors of smoking,” says Edson.
Because it’s hard to tell if the cigarette is made with paper or plastic.
“When they first came out I did have customers say, ‘Well bars asked me not to use these or restaurants because it gives the impression that we are smoking in the establishment’,” says Hartkemeyer.
“So I think we’ll just stay with the non-smoking trend and maybe be the first to implement it in the Eau Claire area,” says Aspenson.
Instead asking smokers to step outside whether they light or ignite.
Aspenson also owns the Livery in downtown Eau Claire and says they do allow outdoor smoking for tobacco or electronic cigarettes at that location.
Read more or view video:  http://www.wqow.com/story/22960738/2013/07/29/the-electronic-cigarette-ignites-debate

Cities Struggle to Classify E-Cigs as They Grow in Popularity

By: Joy Lim Nakrin
A growing trend is taking hold in the Twin Cities: electronic cigarettes.
Minnesota’s recent tobacco tax hike seems to have given the business a boost. “Smokeless Smoking” opened its first store in 2009. Now, four years later there are four locations.
Since the new tobacco taxes took effect this month, sales spiked 50 percent, says co-owner Tim Koester. He explains, “Certainly our typical customers are former smokers or people who want to transition off traditional cigarettes.”
E-cigarettes contain vapor with nicotine, not tobacco. Since stores that sell them aren’t tobacco shops, some cities are struggling with how to classify them under city codes.
Though they sell nicotine, the stores are not tobacco shops. Though they feature lounges, they are not food and beverage establishments.
Bloomington City Councilwoman Karen Nordstrom says, “It seems very strange to have this under recreation, but its not going fit anywhere else.”
Smokeless Smoking plans to expand its Bloomington location, which opened in January.
Watch the American Cancer Society weigh in on the smokeless option by clicking here.
http://kstp.com/article/stories/s3110950.shtml

R.I. Governor Chafee vetoes e-cigarette ban for those under 18

BY PHILIP MARCELO, KATHERINE GREGG AND RANDAL EDGAR
PROVIDENCE — Governor Chafee has vetoed legislation prohibiting anyone under the age of 18 from purchasing e-cigarettes and other “vapor products” that heat liquid nicotine into a smokable vapor.
The American Cancer Society, the American Heart Association, the American Lung Association, and other health advocacy groups, had called on Chafee to veto the measure.
They said the bill represented a “stalking horse” for tobacco and e-cigarette companies that want to exempt the growing industry from the regulations and taxes imposed on traditional tobacco-based products.
They also warned that federal regulators are still studying the potential health risks of the relatively new technology .
Introduced by Senate Majority Leader Dominick Ruggerio, D-North Providence, the bill would have defined e-cigarettes and other related products as “vapor products.”
Nine states, including Vermont and New Hampshire, have simply included them in their definition of “tobacco products.”
R.J. Reynolds Tobacco, which is set to roll out its own e-cigarette line, VUSE, later this year, had strongly advocated for the bill and dozens like it in other states.
In his veto message, Chafee said, “The sale of electronic cigarettes to children should be prohibited, but it is counter-productive to prohibit sales to children while simultaneously exempting electronic cigarettes from laws concerning regulation, enforcement, licensing or taxation.
“As a matter of public policy, electronic cigarette laws should mirror tobacco product laws, not circumvent them,” Chafee said.
Other bills vetoed by Chafee on Wednesday would have let municipalities raise taxes on low-income, government-subsidized housing, and increased required public-reporting by the state’s quasi-public agencies.
Chafee did not heed all calls for a veto.
For example, he rejected pleas from the state’s auto insurers to veto a bill telling them when they can — and cannot — declare a damaged vehicle a total loss, that was a priority of the state’s politically connected auto-body shop industry. (Leading the industry’s fight again this year was the sister/law partner of the former senior deputy majority leader in the House.)
Sponsored by Rep. Arthur Corvese, D-North Providence, the new law prohibits an insurer from declaring a motor vehicle a total loss if the cost to restore the vehicle is less than 75 percent of its “fair market value” before it was damaged. The only exception would be if the owner gives the OK to say the vehicle is totaled.
http://www.providencejournal.com/breaking-news/content/20130717-r.i.-governor-chafee-vetoes-e-cigarette-ban-for-those-under-18.ece

Are e-cigarettes healthier?

By 
John Sweet once smoked two packs of cigarettes per day until a chance visit to a Clearwater flea market in early May led him to the latest nicotine alternative.
For $50 he purchased a battery-powered electronic cigarette — a device that comes in many shapes and sizes and in different price ranges.
With the push of a button, the e-cigarette heats a nicotine-infused propylene glycol fluid, turning it into a vapor that’s inhaled. E-cigarette users call the act “vaping,” not smoking.
These e-cigarettes, or e-cigs for short, often look like real cigarettes, but without the lingering smoky odor. Other devices — invented and manufactured in China — look like large ink pens.
“On the spot (after seeing the e-cigarette), I decided to quit,” Sweet said.
Sweet, 44, last week upgraded his cheaper realistic-looking e-cig at Johnny Vapenhiemer E-Cigs, a Paddock Mall kiosk. He said the cheaper e-cig had a short battery life and he wanted something better.
Sweet loves vaping because it is one-fifth the cost of smoking. And despite health warnings, it’s healthier than smoking traditional cigarettes, he said.
In June, the Food and Drug Administration in the Philippines issued an advisory, warning that e-cigs have not been tested and second-hand emissions could be harmful.
“E-cigarettes contain volatile substances, including popylene glycol, flavors and nicotine, and are emitted as (a) mist or aerosol into indoor air,” according to the June 26 advisory.
The advisory stated the FDA in that country cannot exclude adverse health risks from second-hand emission exposure. However, that agency conceded that e-cig devices produce fewer harmful chemicals than conventional cigarettes.
In the United States, the FDA is moving to release for public comment a proposed rule to regulate additional categories of tobacco products, such as e-cigarettes. FDA officials said they cannot comment on the contents of the proposed rule. Official noted in a statement that “further research is needed to assess the potential public health benefits and risks of electronic cigarettes and other novel tobacco products.”
At the e-cig kiosk in Paddock Mall, owner Johnny Mays — who calls himself Johnny Vapor, master vaporologist — defended the world’s fastest-growing tobacco trend.
Mays held a 48-page e-cigarette study commissioned by the Tobacco Vapor Electronic Cigarette Association (TVECA).
He inhaled an e-cig, one of two that comes in a kit with a battery charger and bottle of fluid, called e-juice, for $64.95. Mays carries e-juice in 60-plus flavors, from tobacco to strawberry.
Users squirt a few drops of fluid into a small tank. The battery heats the e-juice to 92 degrees. With a push of a button, users inhale vapor through a mouthpiece.
Mays says the industry is misunderstood and that e-cigs are much safer than traditional cigarettes.
“Cigarettes have thousands of harmful chemicals; e-juice has one chemical,” Mays said as he helped Sweet pick a red e-cigarette kit.
June’s advisory came three years after the agency attempted to block the sale of e-cigarettes all together in the United States. The FDA claimed that an e-cigarette was a drug device and should be regulated as a heavily scrutinized medicine, not a tobacco product.
The federal court ruled e-cigarettes do fall under the FDA’s tobacco regulations. After all, nicotine comes from the leaf and stems of tobacco.
Tom Kiklas, co-founder of TVECA, maintains that e-cigarettes are not being touted as a cessation product, like nicotine lozenges, patches and gum. Therefore, e-cigs can be marketed like any other tobacco product.
The American Lung Association doesn’t buy Kiklas’ claims. Erika Sward, American Lung Association’s vice president of national advocacy, said e-cigs have not been thoroughly studied and no one really knows the chemical content in the e-juice. She also criticized the FDA and the Obama Administration for not moving fast enough in regulating e-cigarettes.
“The American Lung Association is very concerned about the potential health impacts of e-cigarettes,” said Sward, adding another big concern is the product is being marketed to children. “When I see a product with a cotton candy flavor, I don’t think that is for adults.”
Sward said there is also ample proof that e-cigarette companies are marketing the products as a tobacco cessation aide.
Kiklas said manufacturers of cessation products, not the tobacco industry, is leading the charge against e-cigarettes. Most tobacco manufacturers are — or soon will be — joining the e-cigarette market after tobacco sales declined by 5 percent last year.
Kiklas said regular tobacco cigarettes have 7,000 chemicals, 600 of which become carcinogens when ignited. E-cigarettes only have five basic ingredients: nicotine, flavoring, water, glycerol and propylene glycol — less than one half of 1 percent of the harmful chemicals, he said. Propylene glycol has caused concern among e-cig opponents because it is an ingredient in anti-freeze. Kiklas said the ingredient, which has long been approved by the FDA, is in many products, including asthma inhalers and food since the 1930s.
Health officials said since the product is not regulated — or even properly studied — then who knows officially what e-juice contains from one manufacturer to another. The Florida Department of Health’s Tobacco Free Florida agency stated it “is wary of any perceived benefits.” The agency noted there is no credible medical or scientific research to support the safety of e-cigs.
“Preliminary research from the FDA revealed that some e-cigarettes contain toxic substances and carcinogens, which are known to cause cancer,” the state health department noted.
The group Americans for Nonsmoker’ Rights (ANR) cited the Indoor Air journal study. The study showed nicotine causes the formation of carcinogens — including formaldehyde — when exhaled indoors, and could remain on surfaces for weeks. Users could then absorb the carcinogens.
“The authors (of the study) concluded the e-cigarettes are a new source of chemical and aerosol exposure and their potential impact is a concern that should be investigated,” the statement noted.
ANR’s immediate concern is the use of e-cigs at smokefree locations, like the workplaces and restaurants.
Evelyn James, health education specialist with the Florida Department of Health in Marion County (once called the Marion County Health Department), said e-cigarettes have not been studied.
James urged potential users not to “replace one product that has been proven to be bad for you” for another that has not even been tested.
The FDA’s June advisory comes as the popularity of e-cigarettes is starting to gain worldwide momentum.
E-cigarettes is a $500 million industry, a minute share of the annual $80 billion U.S. tobacco market. The e-cigarette market has grown globally by 30 percent in the past three consecutive years.
Marion County resident Jan Spagnol, an opiate user who has been clean for one year, said during her recovery, she has relied heavily on cigarettes. Last week, she purchased an e-cig kit from Mays to ratchet down her nicotine intake.
E-juice comes in different strengths, ranging from 24 milligrams of nicotine per milliliter down to zero. One 12 milliliter bottle, which costs $8.99 at the Paddock Mall kiosk, will last a one-pack-per-day light cigarette smoker about two weeks.
The e-cigarette device itself can be reused. The consumer will also have to buy a replacement tank for $6.99 about once a month, depending on usage.
In the end, a one-pack-per-day light cigarette smoker will spend about $25 per month vaporing, compared to about $150 per month smoking.
“I wanted a way to wean myself off cigarettes,” she said, adding that nicotine patches was one option.
She decided against patches because e-cigarettes allow her to still inhale and exhale, retaining that oral fixation associated with cigarettes.
“After I quit smoking, I really will be clean and sober,” she noted.
http://www.ocala.com/article/20130717/ARTICLES/130719745/-1/entertainment02?p=5&tc=pg

E-cigarette regulation and taxes once again on the front burner at the Capitol

By WAYNE GREENE World Senior Writer
OKLAHOMA CITY – Three lawmakers are renewing the fight over an issue that lit up the state House last year – electronic cigarettes.
Last week, Speaker of the House T.W. Shannon approved so-called “e-cigarette” study proposals by Speaker Pro Tem Mike Jackson, Rep. Mike Turner and Rep. David Derby.
Jackson, R-Enid, is the second-ranking member of the House leadership. Derby, R-Owasso, is chairman of the House Public Health Committee and will oversee the studies.
An e-cigarette is an electronic inhaler that vaporizes a liquid nicotine solution, simulating the act of tobacco smoking. Like cigarettes, users get a nicotine fix. Unlike cigarettes, there is no smoke.
During the final days of the Legislature’s last session, the House rejected a bill backed by Jackson to deal with the same issue on a 66-29 vote after nearly three hours of questioning and debate.
At issue in the interim studies is how the devices are taxed and how their sales are regulated.
Derby’s study would investigate “regulation of vapor and other emerging nicotine products.”
The Jackson-Turner study would look into “taxation, tobacco harm reduction, and youth access to electronic cigarettes.”
Currently, state law doesn’t adequately address sales of e-cigarettes to minors, and “youth access is definitely something we need to address,” Jackson said.
The U.S. Food and Drug Administration is considering classifying the devices as tobacco products, a move that could result in a significant tax burden on people using them, he said.
If FDA action made the devices subject to the state’s tobacco tax, it could make the e-cigarette equivalent of a pack of cigarettes taxed at $8.50 to $9, Jackson said.
“What we don’t want to do is put a higher tax on a less-harmful product,” he said.
Jackson said his brother has used an e-cigarette to gradually reduce his nicotine dependency. He hasn’t used a cigarette in three or four months, Jackson said.
“I have seen first-hand how they can help,” he said.
The American Cancer Society opposed Jackson’s efforts last year and will continue to fight against efforts to reduce taxes on e-cigarettes, said James Gray, director of government relations for the Cancer Action Network.
There is no scientific evidence to back claims that e-cigarettes are an effective means of weening smokers from their habit.
No other state has taken the actions Jackson has proposed for Oklahoma, Gray said.
“I think this is a new direction of Big Tobacco, and (legislators are) really cautious about doing anything that provides a new market to Big Tobacco,” he said.
Doug Matheny of tobaccomoney.com said the claim that an FDA regulation could lead to a dramatic state tax hike is a “scare tactic.”
“It’s one of those classic examples of the tobacco industry – and I do believe the tobacco industry is behind this – to make legislators feel like they have to do something – they have to act,” Matheny said. “And actually they don’t need to at all in Oklahoma.”
A simple bill to restrict youth access to e-cigarettes should take less than one page, but the design here is about expanding markets for nicotine, not reducing smoking, Matheny said.
“These companies don’t really care what you buy from them as long as you continue to buy from them. They’re selling an addictive product that contains nicotine. As long as you don’t quit altogether, they’re happy.”
Tobacco lobbyists are a powerful force at the state Capitol, Matheny said.
According to Oklahoma Ethics Commission reports, contributions to Oklahoma state legislative campaigns from the Reynolds American Inc. political action committee increased by 70 percent in the 2012 election cycle. Meals purchased by lobbyists on behalf of Reynolds American Inc. increased by more than 50 percent, Matheny said.
http://www.tulsaworld.com/article.aspx/E_cigarette_regulation_and_taxes_once_again_on_the/20130716_11_A1_CUTLIN990334?subj=1

Sherman man's e-cigarette explodes while charging

SHERMAN, TX — They’ve been touted as the 21st-century cigarette. But, one Texoma man has a warning for e-cigarette users after he says simply charging his caused it to blow up.
Sherman resident, Wes Sloan, says when he decided to kick the habit he made the switch to an electronic cigarette thinking it would be safer.
But, he says the device literally blew up in his hand, and he wants you to know just how dangerous they may actually be.
“The battery was into about a two hour charge and it exploded and shot across the room like a Roman candle,” Wes Sloan said.
These are Wes Sloan’s fingers after he says his electronic cigarette caught on fire, eight months ago.
“I still now today have numbness in both of those fingers,” he said.
Sloan says he suffered second and third degree burns, and both he and his wife Cathy say they had to be treated for smoke inhalation
He claims he was charging his e-cig in the USB port of their Macbook. This isn’t the only incident that’s been reported. Just last month, a Tulsa man charging his e-cigarette the same way, says the device started a fire.
One dealer says he discourages people from using anything but the wall charger.
“A lot of people do it, a lot of people have zero problems, but do you want to take that chance?” Jeff Barnard said.
“There wasn’t anything that said how long to charge it. There wasn’t any warnings. It’s marketed as a safe, good product. And the reason we bought the one we did is it was one of the best ones on the market and it was U.S. made,” Sloan said.
Sloan contacted the retailer who sold him the device, and manufacturer, but says he’s had no luck.
News 12 called the company Sloan says made this e-cigarette. They told us their legal team is looking into the matter. They say they’re aware of knock-off versions of their cigarettes roaming around, and won’t comment until they investigate further.
“We want to recover our losses. Most of all, we want the consumer to know that this isn’t as safe a product as they market it to be,” Sloan said.
Texoma Pulmonologist Dr. Don Wynn, says he and doctors around the world recommend e-cigarettes to smokers as a last resort to quit smoking. But, the FDA does not regulate e-cigs. Dr. Wynn says that’s concerning, not only because of the potential injuries they could inflict, but because you may not always know what’s in them.
“We don’t know what the industry put in the electronic cigarettes,” Dr. Wynn said. “I believe we need more research to determine whether the electronic cigarettes are harmful or helpful for patients.”
As for the Sloans, they say they’ll never try another.
“Every time I see someone buying one at a gas station or anywhere, I let them know that you know, be careful because they can explode,” Sloan said.
Dr. Wynn wants to study the long-term effects of the e-cigs, to find out whether they actually do improve smokers’ health. He needs 200 participants for the study.
If you would like more information regarding the study, contact Dr. Wynn’s office at (903) 463-0003.
http://www.kxii.com/news/headlines/E-cigarette-explodes-in-Texoma-mans-home-215771641.html  (Video included)

E-Cig Sellers Make Most of Regulatory Breathing

By DAN MANGAN, CNBC
Sell ’em if you’ve got ’em—without regulations.
Makers of electronic cigarettes are enjoying a booming marketplace even as they keep wary eye on the Food and Drug Administration, which is expected to release proposed regulations of the nicotine-vapor-peddling category this fall.
The lack of federal regulations on e-cigarettes—in contrast to tight rules on traditional smokes—has given companies a long leash. Sales of the products are projected to double to $1 billion, with about 250 different brands, all without nationwide restrictions on advertising, Internet sales, flavorings or even the age of buyers.
But those days are numbered.
Vivien Azer, a Citigroup tobacco analyst, said the lack of federal regulations has given e-cig companies “some breathing room” to grow. “You think about the competition landscape,” she said. “Part of that is trying to get as much done as possible before regulation.”
In early July, the FDA said that it would issue proposed rules on unspecified “tobacco products” in October. Those products are widely assumed to be e-cigarettes, which a 2010 court decision allows the agency to regulate.
The FDA declined to comment on the timing or contents of its planned “deeming regulations” for e-cigs, which are gaining popularity because they are perceived as being less harmful than traditional cigarettes. They also help and avoid the smell and indoor bans that plague tobacco smokers.
Azer and other industry observers said implementation of the regulations, after the FDA considers public comment could take another 12 to 18 months.
“There’s an incentive now to get as good as you can before the FDA starts regulation,” said Dr. Neal Benowitz of San Francisco General Hospital Medical Center.
“People know at some point these products are going to be evaluated. Therefore, there’s an incentive to put together an effective product that people like, that are also safe,” said Benowitz, who co-authored the article “The Regulatory Challenge of Electronic Cigarettes” published Monday in the Journal of the American Medical Association.
‘May the best company win’
“At this point, it’s a free trade, and may the best company win,” said Eli Alelov, CEO of Logic Technology, the nation’s No. 3 e-cig company.
His company is being realistic about possible FDA rules, however. For example,Logic advertises on more than 15 radio stations and is contemplating launching an expensive television campaign. That would follow TV ads by two of its leading competitors, Njoy and Blu (the latter was bought by Lorillard last year). Both radio and TV are off-limits to traditional cigarette ads.
“We’re supposed to start a campaign by the end of the year,” Alelov said of Logic’s TV push. But, he added, “we want to wait for the FDA’s proposed regulations to suggest “what we can and can’t show on television.”
Matthew Steingraber, co-founder of White Cloud Electronic Cigarettes, said there are “positives” that come from having no federal regulation, including “flexibility in the type of nicotine we can offer, and we’re not held to a certain flavor.”
White Could sells e-cigarettes containing six different strengths, ranging from “nicotine-free all the way up to 5.4 percent by volume,” he said, adding that the options are a selling point to those looking to transition to e-cigs and then taper down their nicotine consumption.
The Tarpon Springs, Fla.-based company also sells 19 different flavors of e-cigs, including two added last month: Iced Berry and Zero K, which boasts “a cold blast of peppermint.”
Flavors are prohibited for traditional cigarette makers. In 2009, the FDA flexed its muscle in regulating tobacco for the first time by banning candy- fruit- or clove-flavored cigarettes because of concerns they would attract teens.
“Adults, in fact, like fruit-flavored things, and I think it’s a nice change, whenever you’re switching from tobacco, which tastes horrible, to have different flavors available to you,” Steingraber said.
He is concerned that the FDA might decide to ban flavored e-cigarettes as well. That “would most likely turn smokers off of the product” because they would be left with “an essentially flavorless” vapor that would make traditional cigarettes appear preferable in comparison, he said.
He argues that banning flavors in or setting maximums on nicotine content in e-cigs would make kicking the tobacco habit even harder for traditional smokers.
But a perhaps bigger concern for Steingraber and other executives at e-cig makers is a potential ban on Internet sales. Seventy-five percent of White Cloud’s business is in online transactions.
“What would deliver the hardest blow to e-cigarettes … would probably be something that eliminates online sales,” said Steingraber, adding that such a ban would only help the tobacco giants that sell e-cigs and already have a massive retail footprint from their traditional products. “It would be somewhat catastrophic,” he said.
But White Cloud, Logic and a number of other companies welcome the prospect that the FDA regulations will include quality-control standards in e-cigarette manufacture and in the nicotine-laced liquids the devices vaporize for inhalation.
In fact, a number of e-cigarette makers are already marketing their products as if some rules are in effect.
Altria, the parent of Philip Morris, will begin selling its e-cig line, MarkTen, in August in Indiana. David Sylvia, a spokesman for Altria, said any FDA rules should encourage “good product guidelines and good manufacturing practices” in the category. “It should lead to better product performance and reduced variability,” he added.
Altria has not disclosed details of its MarkTen campaign, and Sylvia declined to answer whether the company would advertise on TV or radio.
But Altria is holding the product to standards similar to those for its traditional cigarette brands, he said.
For example, although there are no federal rules about purchase age or behind-the-counter display, Altria’s contracts with vendors state that “the product will be sold behind the counter, in a clerk-assisted fashion, to people 18 and over,” Sylvia said.
Those agreements happen to comply with an Indiana state law enacted in July, but Sylvia said Altria supports federal regulation that would provide consistency for e-cig vendors, who now face a “hodgepodge patchwork” of state regulations.
After years on the sidelines, No. 2 tobacco company Reynolds American is entering the e-cigarette market, rolling out its Vuse line in Colorado this month. The company plans to advertise Vuse on TV as it tries to build share in a tight market.
“The FDA recognizes that we do have the right … to advertise on TV,” said David Howard, spokesman for R.J. Reynolds Vapor, the subsidiary selling Vuse. But, he added, “in our television ads you will not see people using the product.”
In addition, Vuse will not be marketed online. Howard said that decision was a function of not having enough security to ensure that the products were being sold only to adults—a concern that reflects recognition that the FDA will be regulating e-cigs as tobacco products.
“Therefore, we are marketing them as tobacco products,” Howard said.
This article originally appeared at CNBC.com. Read more at CNBC:
http://www.thefiscaltimes.com/Articles/2013/07/18/E-Cig-Sellers-Make-Most-of-Regulatory-Breathing-Room.aspx#g11MtCIZc8W4wkGW.99