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Mint, menthol: Vape industry has dug heels in on flavour bans

Efforts to ban flavoured e-cigarettes and reduce their appeal to youngsters in the United States have sputtered under industry pressure in over a half-dozen states this year even as one state, Michigan, moves ahead with its own restrictions and President Donald Trump promises federal ones.

In many cases, the fight by the industry and its lobbyists has focused on leaving the most popular flavours – mint and its close cousin, menthol – alone. But public health experts say that all flavours should be banned, and that menthol can still hook kids on vaping.

The proposal Trump outlined Sept. 11, which would supersede any state inaction, includes a ban on mint and menthol, and an industry giant quickly indicated it would capitulate.

“We strongly agree with the need for aggressive category-wide action on flavoured products,” read a statement released by Juul Labs Inc. “We will fully comply with the final FDA policy when effective.”

But the fight in state legislatures has been fierce. Lobbyists for the vaping and tobacco industry fought bans on flavours in Hawaii, California, New Mexico, Massachusetts, New York, Maine and Connecticut.

Such bans failed or stalled, even as Michigan’s governor this month ordered emergency rules prohibiting flavoured e-cigarettes. New York Democratic Gov. Andrew Cuomo expressed a desire to ban flavoured e-cigarettes.

Trump’s federal proposal, as it stands, would require no congressional approval, meaning lobbying efforts to defeat it could be less effective than in state legislatures. Juul spent $1.9 million in the first half of the year to try and sway the White House, Congress and the Food and Drug Administration.

The Vapor Technology Association has reported spending $78,000 this year in its lobbying fight against California’s proposed flavoured e-cigarettes ban, while one of the world’s largest tobacco producers, Altria, reported spending over $100,000 last fall solely to lobby such legislation. The bills have since stalled.

Reynolds American, which sells Vuse Alto e-cigarettes, reported spending $240,000 on paid lobbyists in New York this year. At least $23,000 alone went to fund their lobbying push against a flavoured tobacco ban that failed to pass this year.

Altria, which is also Juul’s biggest investor, also spent over $70,000 in Maine alone this spring on an online social media and email campaign in its efforts to defeat a ban on flavoured e-cigarettes and all tobacco products, according to lobbying reports filed with state ethics officials. Maine still has no flavour ban.

The global e-cigarette and vape market was valued at as much as $11 billion in 2018. The rise in teen vaping has been driven mainly by flavoured cartridge-based products such as Juul, which controls roughly three-quarters of the U.S. e-cigarettes market.

The proposals and the lobbying fight come as health authorities investigate hundreds of breathing illnesses reported in people who have used e-cigarettes and other vaping devices. No single device, ingredient or additive has been identified, though many cases involve marijuana vaping.

Supporters of flavours argue that adult cigarette users say flavours helped them quit, and that legislators should instead focus on companies that are trying to hook young nonsmokers with clearly kid-friendly marketing and packaging.

“One of the things that we are finding is that state legislatures are reflexively reacting to media stories and without a scientific basis making determinations that flavours are the problem so we need to get rid of all the flavours,” said Tony Abboud, president of the Vapor Technology Association.

There had been concern that the tobacco and vaping industries were winning their fight to keep at least the most popular flavours _ mint and menthol _ in play. That concern has now been tempered by Trump’s announcement that his ban would include menthol and mint.

Last November, the FDA announced plans for a crackdown that could lead to federal regulators pulling all e-cigarette flavours besides menthol and mint – thought to be useful to adult smokers – from shelves. The FDA also said it would also seek to ban menthol cigarettes.

The FDA’s announcement came just two days after Juul announced the halting of in-store sales of mango, fruit, creme and cucumber flavours in retail stores.

The company’s CEO has said that Juul never intended for young people to use their products but that they are “sensitive” to concerns raised by the FDA.

And a spokesman for Juul, Ted Kwong, said before the announcement by Trump that the company would support an outright ban on flavours that mimic kid candies, foods and drinks.

Still, in line with the FDA’s proposed policy, Juul Labs still distributes mint, menthol and tobacco flavours in retail stores. The company also sells flavoured products through its website.

Anti-tobacco and -vaping groups say there’s no scientific basis for leaving menthol or mint alone. They warn menthol has been unethically marketed toward African Americans, and that such flavours can still increase the appeal of e-cigarettes for young people who aren’t smokers by overcoming the harshness of nicotine.

“Anything that is overcoming the harshness of tobacco flavouring is something that kids are going to find more appealing,” said Hillary Schneider, director of government relations in Maine for the American Cancer Society Action Network.

But banning minty flavours has been politically contentious.

In Maine, convenience store owners upset by a proposed flavour ban argued that mint, wintergreen and menthol represent 30% of flavours offered in stores statewide and $32 million in tax revenue.

Lawmakers then considered a tweak to only allow menthol, mint and wintergreen flavours. Maine ended up passing a bill _ backed by the tobacco and vaping industries, as well as small retail stores _ that instead makes it illegal to sell e-cigarettes to people under 21 and give them to minors under 16.

Officials in Michigan Gov. Gretchen Whitmer’s administration discussed exempting mint and menthol flavours from the e-cigarette ban, but “determined that the action taken was the best path forward to protect youth,” said Bob Wheaton, spokesman for the state Department of Health and Human Services.

A court challenge is expected for Michigan’s ban.

Abboud argued before Trump’s decision that states should hold off on further action for now.


Screen Shot 2019-05-31 at 9.16.36 AM

Canadian health officials on alert after reports of vaping illnesses in the U.S.

Nova Scotia’s chief medical officer of health says he and colleagues across Canada have increased their vigilance as American health officials investigate nearly 200 cases of severe respiratory illnesses potentially linked to vaping.

Dr. Robert Strang said surveillance is being strengthened and he is sending informal email inquiries to respiratory specialists and intensive care units at Nova Scotia hospitals to see if there are any similar cases.

“It’s premature to say that these (U.S. cases) are absolutely caused by vaping, but the links are very concerning,” Strang said in an interview. “We are well aware of the broader issue, and I’m certainly involved in the national conversations … around what more do we need to do to strengthen our approach to vaping.”

As of late last month, officials with the U.S. Centers for Disease Control and Prevention said 193 people in 22 states had contracted severe respiratory illnesses after vaping.

But they stressed that a clear-cut common cause of the illnesses hadn’t been identified and that they were being classified as “potential cases still under investigation.”

Strang, who has long been outspoken about the potential dangers posed by e-cigarettes and vaping products, said Health Canada was already looking at strengthening its regulations before the U.S. health scare began in June.

He said health officials are collaborating on draft regulations that would strengthen protections for youth, in particular. Provincial regulations are also being examined to see if they can be beefed up.

“This new (U.S.) evidence raises the importance and the urgency of that work while we wait for more definitive information to come,” Strang said.

Health Canada and the Public Health Agency of Canada confirm they are monitoring the recent U.S. clusters of acute pulmonary illnesses reportedly linked to the use of vaping products, which have led to one death.

Maryse Durette, a spokeswoman for the two agencies, said Canadian health officials have not yet seen any evidence of similar clusters occurring in Canada.

Durette said in a statement that Health Canada and the Public Health Agency of Canada are in close contact with counterparts in the United States, including the Food and Drug Administration and the Centers for Disease Control and Prevention, to “better understand” the investigation into the illnesses.

“The Government of Canada will continue to monitor all available data sources for indications of similar issues in Canada and will take action, as appropriate, to protect the health and safety of Canadians,” the statement said.

Dr. Andrew Pipe, a clinician with the University of Ottawa Heart Institute, believes similar cases will be detected in Canada now that Canadian doctors are aware of the problems that have surfaced south of the border.

An expert on smoking cessation, Pipe said the situation also underscores the need for “thoughtful and forceful” regulation of vaping products and their marketing in Canada.

Pipe said there is currently an epidemic of youth vaping in Canada that coincides with an increase in youth and adolescent smoking rates for the first time in more than three decades. He said regulations need to focus on advertising to youth, and there need to be controls on the nature of vaping devices and the amount of nicotine they contain.

“The world does not need candy floss peach-flavoured e-juice,” Pipe said. “We need to adopt the same kind of regulations for marketing and advertising as far as youth are concerned that we do for tobacco products.”

Nova Scotia’s was one of the first provinces to introduce regulations banning the sale of e-cigarettes to anyone under 19 and banning in-store advertising, but Strang said there could be further tightening.

He said online sales still pose a challenge, and he is concerned by reports that teens are able to purchase from vape stores. “Clearly we have some work to do around making sure that licensed vape stores are not selling to minors,” Strang said.

A recent study in the medical journal The Lancet found that the prevalence of vaping among 16- to 19-year-olds had increased in Canada and the U.S. between 2017 and 2018, as did smoking in Canada.

And although vaping is likely a less harmful mode of nicotine delivery than cigarettes, the study said “long-term exposure to e-cigarette vapour might cause nicotine dependence and increase the risk of respiratory and cardiovascular health effects.”

Strang said that amounts to a call to action.

“If you are not smoking or vaping, you are putting your health at risk by starting to vape,” he said. “We need to get that message out there much more strongly.”


Here’s what c-stores need to know about vaping regulations

Screen Shot 2019-05-08 at 3.18.20 PMAlthough Health Canada acknowledges that vaping is less harmful than smoking, the country’s national health overseer also has serious concerns about e-cigarettes and related products. According to Health Canada, vaping can lead to nicotine addiction, it can cause lung damage, and the long-term impacts remain unknown. As a result, government regulators are looking closely at the sector and there are a number of requirements for convenience operators.

Most vaping regulations are provincial and vary across the country, although generally there is a concerted effort to protect younger people from e-cigarettes and related products. Federally, the Tobacco and Vaping Products Act, which became law on May 23, 2018, protects youth from nicotine addiction and from incentives to use tobacco and vaping products. It allows adults to access vaping products as a less harmful alternative to smoking.

The act creates a national minimum age of access for vaping products: 18 years.

It also includes significant restrictions on the promotion of vaping products, such as bans on:

  • advertising that appeals to youth;
  • lifestyle advertising;
  • sponsorship promotion; and
  • giveaways of vaping products or branded merchandise.

Additional restrictions under the legislation came into force late last year. These include bans on:

  •  the sale and promotion of vaping products that make the product appealing to youth, such as interesting shapes or sounds;
  • the promotion of certain flavours — like candy, desserts, or soft drinks — that may be appealing to youth; and
  • product promotion by testimonials or endorsements.

Concerns about the appeal of vaping for young people is something manufacturers take seriously. “Our position is very simple: just as we believe that youth should not smoke, we agree that youth should not vape,” says Eric Gagnon, head of corporate affairs at Imperial Tobacco Canada. “We support measures that prevent under-age access to vapour products.”

Rob Colucci of Fontem Canada (blu) adds, “We recognize that much work needs to be done in striking an appropriate balance between ensuring no youth uptake of vaping products while ensuring sufficient communication with adult smokers is allowed so as to encourage them to switch out of tobacco.

“Accordingly, we strongly support government regulatory initiatives aimed at preventing vaping products to be targeted at youth in Canada and around the world.”

Originally published in the May/June issue of Convenience Store News Canada. 


Vaping among Canadian teens spikes by 74% in one year, study suggests

Screen Shot 2019-05-08 at 3.17.42 PMNew research suggests vaping among Canadian teens skyrocketed by 74% in a single year, and that new brands of e-cigarettes are gaining a foothold following federal legislation.

University of Waterloo professor David Hammond, who led the study of youth vaping in Canada, the U.S. and the U.K., said the findings reflect the risks of the “newest evolution of vaping.”

The researchers say an online survey found the number of Canadian participants aged 16 to 19 who reported vaping in the previous month rose from 8.4% in 2017 to 14.6% last year.

Rates of weekly use climbed to 9.3% from 5.2% over the same time period.

In May 2018, Ottawa formally legalized vaping, opening the door for international vaping brands – some backed by big tobacco companies – to enter the Canadian market.

Weeks after becoming available in Canada, some of these vaping brands ranked among the most popular with teens, along with similar high-nicotine products, said Hammond. In the U.S., researchers found parallels between the rise of these brands and a surge in youth vaping, he said.

The study also suggested that youth cigarette smoking increased from 10.7% in 2017 to 15.5% the following year, deviating from decades of research suggesting tobacco use in Canada was on the decline, Hammond said.

Hammond said he hopes the results are just a “blip,” but said it would be worrisome if other studies came to the same conclusion.

The research paper published in the British Medical Journal is based on two waves of online surveys conducted in Canada, the U.S. and the U.K. in July and August 2017 and August and September 2018. Data was collected from a sample of 7,891 Canadians recruited through commercial panels.

The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

E-cigarettes can be an effective tool for adult smokers trying to quit, but Hammond said policy-makers need to be proactive in preventing young Canadians from picking up the habit.

“What the government and public-health authorities need to do is find some balance to allow adult smokers to have access to these products, without creating a new generation of nicotine users,” Hammond said. “We haven’t got that balance right yet.”

Maryse Durette, a spokeswoman for Health Canada, said in a statement that the department has taken a number of actions in response to the mounting evidence that youth vaping is on the rise.

Durette said Health Canada is ramping up its efforts to ensure industry compliance with current federal regulations on the sale and promotion of vaping products.

The agency is sending letters to vaping retailers across the country to remind them of their obligations to prevent youth access, and health officials are expected to inspect thousands of convenience and specialty stores by the end of the year, said Durette.

Existing regulations prohibit youth-targeted advertising of vaping products, and Health Canada is reviewing feedback on proposed new measures to ban these ads in public places, stores and media where young people are likely to encounter them, Durette said.

The department is also examining the role of flavours, nicotine concentration and product design in appealing to youth and non-smokers, she said.

It has also launched a multi-phase campaign to educate teens about the risks associated with vaping at a young age.

But Rob Cunningham, senior policy analyst at the Canadian Cancer Society, said the research shows that government needs to do more – and fast.

“We have made such incredible progress to reduce youth smoking, and now we have a situation whereby a new generation of teenagers are becoming addicted to vaping products,” he said. “We cannot stand still and allow that to happen.”

Cunningham said Ottawa needs to tighten up advertising rules for vaping products to make them at least as restrictive as those for cannabis.

He also urged federal lawmakers to adopt restrictions on the use of flavoured vaping products, and said provinces should ban their sale except in adult-only specialty stores.

Most provinces have legislation on vaping products, and Cunningham said the only two outliers, Alberta and Saskatchewan, must follow suit.

He called on provincial governments to follow many U.S. states in raising the minimum age to purchase tobacco and e-cigarettes to 21. As it stands, anyone 18 and over can purchase vaping or tobacco products in Canada.

B.C. Health Minister Adrian Dix endorsed the Canadian Cancer Society’s call to action, noting that the province has recommended restrictions on vaping advertisements and the sale of flavoured products as part of the federal consultations.

“B.C. also stands ready to introduce its own initiatives should federal action be delayed,” Dix said in a news release. “Obviously, it is our preference to work with other jurisdictions and the federal government on joint action.”


Imperial Tobacco Canada launches retail campaign to curb youth vaping

In the furore around World No Tobacco Day last week, Jorge Araya, president of Imperial Tobacco Canada, reiterated the company’s commitment to offering what it calls “potentially reduced-risk products to adult consumers” and to help discourage problem youth vaping with a new educational campaign for retailers.

“Our position is very clear. Just as we believe that youth should not smoke, we agree that youth should not vape.  Despite our own youth prevention efforts and Health Canada’s recent education campaign, youth vaping is still occurring, and it must be addressed before it becomes as significant a problem as youth alcohol or cannabis consumption1,” Araya said in a statement.

To properly address youth vaping,the company said it is important to understand how and where Canadian youth are getting their products and to ensure that the laws already in place are enforced.

“We work closely with our retail partners to ensure they uphold the minimum age laws.  We ensure our on-line sales are age verified both when the order is placed and at the time of delivery,” said Araya. “And while we are confident that the vast majority of youth do not obtain these products directly through convenience retail locations, today we launched a new campaign in retail stores to further educate retailers and remind consumers that vaping products are not to be sold to youth.”

The company says that while their vaping products play a role in achieving the federal government’s objective of reducing the smoking rate to 5% by 2035, the federal and provincial governments must implement the right regulatory framework that balances various objectives.

“Despite the evolving attitudes towards vaping, it remains a controversial subject with serious hurdles to overcome. The most pressing is striking the right regulatory balance that ensures that youth do not have access to vaping products, and adult smokers have the necessary information if they want to switch,” said Araya.

Health Canada has acknowledged that vaping is a less harmful alternative to cigarettes. Imperial point to the UK, where Public Health England estimates that vaping products are at least 95% less harmful than traditional cigarettes, and “as a result of their progressive policies over 1.7 million smokers have quit smoking.”

“If we continue to put our combined efforts behind addressing youth vaping and implementing the right regulatory framework, we have a real opportunity to make a difference for society, governments, our company, and most importantly, adult smokers,” said Araya.


Shift in nicotine use is putting pressure on cigarette segment

Shifts in consumers’ tobacco use is causing a stir on the back counter, according to a recent survey by Wells Fargo Securities LLC.

The firm’s first quarter Tobacco Talk survey found that the adult tobacco consumer in the remains stable driven by effective loyalty programs and promotions, low unemployment and higher disposable income.

In addition, cigarette volume declines decelerated in the first quarter, according to the survey of U.S.-based retailers representing roughly 60,000 convenience stores.

However, retailers’ outlook for cigarette volume in 2019 “has decelerated significantly” as dual usage and smoker conversion to e-vapor products like Juul has accelerated, explained Bonnie Herzog, managing director of tobacco, beverage and convenience store research at Wells Fargo Securities.

“It’s increasingly clear to us that the tobacco industry is being disrupted as smoker conversion to e-vapour accelerates, negatively impacting cigarette volume as a result,” she said.

Originally published at Convenience Store News. 

 


Quebec judge rules law that prevents vaping from being advertised to smokers violates “freedom of expression”

Quebec is within its rights to legislate on vaping, but a provision banning demonstrations of vaping products inside shops or specialized clinics goes too far, a Quebec judge has ruled.

In a judgment released Friday, the court also invalidated another section of the provincial law prohibiting the advertising of vaping products to smokers seeking to kick their habit.

A legal challenge was brought by an association representing Quebec vape shops and the Canadian Vaping Association.

They argued that parts of the Tobacco Control Act adopted by the Quebec government in 2015 violated their fundamental rights, notably freedom of expression.

Justice Daniel Dumais has suspended his ruling for six months to allow lawmakers to rewrite the problematic sections of the province’s tobacco law to make them valid.

The Quebec association had also argued the province had overstepped its legislative authority by including vaping products.

However, Dumais, who heard arguments in the province’s Superior Court over 10 days last December, ruled Quebec had a right to legislate on the issue.

“Overall, the law is constitutional,” Dumais wrote in a lengthy decision May 4. “Quebec has jurisdiction to legislate as it has done. The Quebec legislature has jurisdiction and could validly pass the contested laws.”

The wide-ranging law was designed in part to put the popular e-cigarette on the same footing as other tobacco products and anti-tobacco groups argued that e-cigarettes needed to be subjected to regulations to prevent youth from using it.

But the judge agreed to strike down two sections of the law that prohibited the demonstration of vaping products inside speciality shops and smoking cessation clinics.

The judge also struck down sections of the law that prevent vaping from being advertised to smokers who aim to stop smoking, ruling it violates freedom of expression.

The Canadian association had argued those sections of the law violated the right to integrity and personal security as well as freedom of expression. The judge also struck down sections of the law that prevent vaping from being advertised to smokers who aim to stop smoking, ruling it violates freedom of expression.

The judge wrote that while the provisions take into account the well being of non-smokers, it seemed to forget the rest of the population -including those smokers who are looking to quit.

“The problem with the current restrictions is that the public – particularly smokers – do not distinguish between smoking and vaping,” the judge wrote. “They must be permitted to know the difference. Rather than silence, it is sometimes necessary to educate and let people know that vaping exists first and foremost for smokers.”


ID please: Here’s what c-store operators need to know about vaping regulations

Buy-marijuana-or-weed-18-years-old-under-21Although Health Canada acknowledges that vaping is less harmful than smoking, the country’s national health overseer also has serious concerns about e-cigarettes and related products. With that in mind, there are a number or rules and regulations c-store operators should keep top of mind.

According to Health Canada, vaping can lead to nicotine addiction, it can cause lung damage, and the long-term impacts remain unknown.

This leads to concerns about the appeal of vaping for young people, a concern manufacturers take seriously. “Our position is very simple: just as we believe that youth should not smoke, we agree that youth should not vape,” says Eric Gagnon, head of corporate affairs at Imperial Tobacco Canada. “We support measures that prevent under-age access to vapour products.”

Rob Colucci, Fontem Canada – blu Vapour, adds, “We recognize that much work needs to be done in striking an appropriate balance between ensuring no youth uptake of vaping products while ensuring sufficient communication with adult smokers is allowed so as to encourage them to switch out of tobacco.

“Fontem Canada – blu Vapour shares Health Canada’s concerns about the increase in vaping product use by youth and agrees that youth access to vaping products and the inducement to use them is a serious and legitimate concern. Accordingly, we strongly support government regulatory initiatives aimed at preventing vaping products to be targeted at youth in Canada and around the world.”

Most vaping regulations are provincial and vary across the country, although generally there is a concerted effort to protect younger people from e-cigarettes and related products. Federally, the Tobacco and Vaping Products Act, which became law on May 23, 2018, protects youth from nicotine addiction and from incentives to use tobacco and vaping products. It allows adults to access vaping products as a less harmful alternative to smoking.

The act creates a national minimum age of access for vaping products: 18 years. It also includes significant restrictions on the promotion of vaping products, such as bans on:

  • advertising that appeals to youth;
  • lifestyle advertising;
  • sponsorship promotion; and
  • giveaways of vaping products or branded merchandise.

Additional restrictions under the legislation came into force late last year. These include bans on:

  • the sale and promotion of vaping products that make the product appealing to youth, such as interesting shapes or sounds;
  • the promotion of certain flavours — like candy, desserts, or soft drinks — that may be appealing to youth; and
  • product promotion by testimonials or endorsements.

Vaping and c-stores: 6 burning questions answered

Screen Shot 2019-05-08 at 3.18.20 PMNot all that long ago, tobacco was the staple for c-stores across Canada. Cigarettes, by the package (large and small) and by the carton (large and small) lined shelves in full display of a steady stream of customers. Those days are gone. In their place are new customers looking to buy a product that has the allure of smoking without, potentially, containing the more than 4,000 chemicals in the typical cigarette.

Electronic cigarettes, commonly called e-cigarettes or simply e-cigs, and related products are becoming a staple for many tobacco smokers and a cadre of non-smokers. As a result, the product category offers convenience stores a new and growing opportunity to draw more customers into their premises more often. The category, however, is not without controversy.

As you enter this brave new world, it’s time to get to know this emerging category.

1. What is vaping?

Vaping refers to the act of inhaling and exhaling – or smoking – a vapour (aerosol) produced by products like e-cigarettes. Vaping products heat liquid formulations, called e-liquids, which are then inhaled.

According to Imperial Tobacco Canada, most vapour products are based on what is called a coil and wick technology. The coil, also known as an atomizer, heats a cotton wick that conveys the liquid, producing the vapour that is inhaled.

Vaping devices come in numerous shapes and sizes, a factor that has confused many in the c-store sector. Some products are small and resemble USB drives or pens. Others are much larger. Despite the diversity of options, however, there are only two types of vaping devices, Health Canada reports. An open system enables the device to be refilled. A closed system requires the whole product or the part that holds the e-liquid to be replaced.

There are also related systems and products including what are called heat-not-burn products that heat tobacco instead of burning it.

2. As a category, is vaping different from smoking?

Absolutely, says Rob Colucci of Fontem Canada – blu Vapour, whose overarching goal as a vaping product company is to transition adult smokers to something better and ultimately eliminate the consumption of combustible (smoking) tobacco. “As a category vapour has exponential growth potential,” he says. “The key to this goal is to help existing adult smokers switch by offering vaping products as a less harmful alternative to cigarettes. Health Canada recognizes and shares this goal, as is made clear on their website where it is noted that vaping is less harmful than smoking.”

3. How prevalent is vaping?

That is a difficult question to answer. A 2017 study from the University of Waterloo, Tobacco Use in Canada, found that in 2015, among Canadians 15 years and older a “substantial number” had tried e-cigarettes. The specific numbers look like this:

  • 13.2% (3.9 million) reported having ever tried an e-cigarette
  • 3.2% (approximately 946,000) used one in the past 30 days
  • 1.0% (roughly 308,000) reported daily use

The use of e-cigarettes is also growing in popularity, according to the report. That popularity appears to be global. In the U.S., for example, a national survey in 2016 found that roughly 4.5 per cent of the adult population were current e-cigarette users. Individuals under 35 accounted for more than half of this figure.

“The vaping market is relatively new and expected to grow rapidly as cigarette sales decline,” notes Michael Nederhoff, Canada’s general manager with JUUL Labs in Toronto. “Some estimate the yearly growth rate of this category is over 15 per cent and could cross $43 billion globally by 2023.”

4. What is the sales potential of e-cigarettes for c-stores?

“Vaping products present a big opportunity for convenience stores,” says Nederhoff. “Vapes are on their way to becoming a sizable product category for convenience store operators. Adult smokers are increasingly interested in what vaping technology has to offer. And regulators and industry are working hard to make sure these products are available in a responsible and controlled way.”

Charis Chrysochoidis, reduced risk products lead for Canada with JTI-Macdonald Corp., in Toronto, points out that the category is likely to expand given a regulatory reversal by Health Canada. “The sale of nicotine containing e-liquids was only legalized in May 2018, so we expect the category to grow over the next couple of years as more adult consumers discover alternative choices to their existing smoking and vaping products. And we think most of this growth will occur through convenience store sales.”

The margin on vape products is also superior to tobacco, notes Stewart Ingles, president of Hilary’s Salesmaster Inc, a national retail distributor based in Concord, Ont. “Convenience stores hardly ever get true dollar margins as they will with this category, so they need to embrace and promote within their stores based on the provincial legal rules.”

“This, in my opinion,” he adds, “is the most important new category to enter this market since the energy drinks.”

5. Will consumers switch from online to in-store?

There is another reason vaping is growing in Canada and has the potential to become a big category in c-stores, says Peter Luongo, Rothmans, Benson & Hedges Inc.’s managing director in Toronto. “Currently online sales are the number one channel for vape product sales, and specialized vape stores are another potential destination for consumers.”

Indeed, says Nederhoff, “convenience stores are one of few brick-and-mortar options for adult smokers to legally purchase vaping devices and products. As such, they play an integral role.”

From a sales perspective, there is no special equipment or features required to sell vaping products. Pricing is also straightforward if c-stores follow the manufacturers’ recommend price point. While prices will vary according to type of product and manufacturer, the market is competitive. C-stores can expect pricing to reflect that competitive market.

6. What do c-store owners need to know about the products?

Understanding e-cigarettes and vaping products has proven problematic. “Initially, the vaping category flooded convenience store owners with complex systems that were hard to explain to both store owners and consumers,” says Chrysochoidis.

JTI is hoping it has cut through this confusion with its new vape system, which Chrysochoidis calls a “game changer.” “Logic Compact offers convenience stores a simple and easy way to use vape, and consumers are responding positively. With its magnetic pods and charger, vaping just clicks with Logic Compact.”

The system, known as a closed tank, uses replaceable 1.6ml pre-filled e-liquid pods. The pods come in four flavours — tobacco, menthol, fresh berries and tropical — and click seamlessly into the device magnetically, as does the charging cable. “Choosing simple, sleek vape technology like Logic Compact makes it easy for convenience store owners to increase foot traffic and revenues and capitalize on the profit opportunity that vapes represent,” says Chrysochoidis.

Other companies, such as JUUL, offer c-stores the option to carry pods in flavours that range from mango to cucumber to Virginia tobacco. These sell for a recommended $20.99 a pack. Device kits, including starter kits, are also essential. JUUL’s starter kit, for instance, includes a rechargeable device, USB charging dock, four JUULpods, and it comes with a one-year limited device warranty.

Then there is the IQOS 3 MULTI, a heated tobacco system and not technically a vape, that gives customers 10 back-to-back experiences without having to charge the IQOS holder in between heatsticks.

Variety defines the vaping market.

Except from The Vape Report in the May/June Issue of Convenience Store News Canada


Health advocates urge Quebec to appeal vaping ruling amid spike in youth vaping

Anti-smoking groups are urging the Quebec government to appeal a court ruling that invalidated certain sections of the province’s tobacco legislation dealing with vaping, as health officials across the country grapple with an apparent spike in youth adopting the habit.

The ruling handed down by Quebec Superior Court on Friday confirmed the province’s right to legislate on vaping, but struck down provisions banning demonstrations of vaping products inside shops or specialized clinics.

It also struck parts of the law prohibiting the advertising of vaping products to smokers seeking to kick their habit.

Flory Doucas of the Quebec Coalition for Tobacco Control said the judgment comes as Canada is dealing with a growing number of youth using vaping products since the federal government passed a law formally legalizing and regulating vaping, or e-cigarettes, in May 2018.

And, she notes, experience with the tobacco industry suggests advertising that targets smokers could also ensnare others.

“It is very worrisome to think that Quebec, one of the only jurisdictions in Canada that had a comprehensive, well-balanced framework for vaping products would now see its framework weakened when in fact other governments _ and the federal government _ is calling on provincial governments to help it tighten and restrict the marketing of these products to address the youth epidemic,” Doucas said in an interview Saturday.

The challenge to Quebec’s Tobacco Control Act, adopted in 2015, was brought by the Canadian Vaping Association and l’Association quebecoise des vapoteries, who argued the law infringed on its members’ freedom of expression.

Justice Daniel Dumais suspended his ruling for six months to allow lawmakers to rewrite the problematic sections of the province’s tobacco law to make them valid.

The Quebec government has not commented on the ruling.

Doucas said the province should appeal, noting the Quebec measures were anchored on prevention and precaution, and make even more sense than they did in 2015.

Although vaping products are less harmful than tobacco products, Doucas said caution is necessary, as is protecting youth against a highly addictive habit whose long-term effects are not known.

Health advocates suggest a rise in vaping among Canadian youth has coincided with heavy marketing and promotion since the federal government passed the Tobacco and Vaping Products Act in 2018.

The Public Health Agency of Canada said in April it was alarmed by the trend and that a new generation of youth addicted to nicotine could lead to a resurgence in smoking and other health problems.

Also last month, federal Health Minister Ginette Petitpas Taylor launched consultations on potential new regulatory measures aimed at reducing the uptick of youth vaping. This consultation, which runs until May 25, is considering measures that include restricting online sales and certain flavours, and restricting the concentration or delivery of nicotine in vaping products.

Doucas said what’s happening elsewhere makes maintaining the Quebec measures even more important.

“Everything is pointing to things getting far more restricted based on this huge surge in youth vaping,” she said.

The Canadian Cancer Society said it is also concerned about youth vaping and called for an appeal.

“The result of this ruling is you could have the potential of having e-cigarette advertising anywhere, at any time,” said Rob Cunningham, senior policy analyst with the society. “That simply would be wrong in terms of protecting youth.”