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I am the owner of Sapphyre Nicotine. I have been in the e-cig and vape business since 2009. This post is a little long but hopefully it is informative for some.
In 2009 the FDA started seizing shipments of electronic cigarettes under the claim that they were drug delivery devices and therefore need to pass FDA approval prior to being marketed and sold in the USA. The industry was just starting out and this was a big blow. Shipments of product were not allowed to enter the USA. Credit card companies were not allowing ecig companies to work with them. It was not looking good for ecigs. A company called Smoking Everywhere sued the FDA and made the argument that ecigs should be regulated as a tobacco product since they contained nicotine which is derived from Tobacco. Njoy joined the litigation and eventually took over when Smoking Everywhere went out of business. In 2010 Njoy won the litigation and ecigs ended up being regulated as tobacco products. This was the best outcome of two evils. The FDA appealed the decision and lost that as well. That’s when the ecig industry really started taking off. Bigger players got into the market and eventually RJR, Altria/Philip Morris, BAT and other big tobacco companies came out with ecig products. They quickly became the dominant sellers in c-stores. The tobacco companies were happy selling tobacco and menthol flavors only. That’s what they knew and that’s what they were good at.
A few years later eliquids and open systems started getting popular. These products were not very popular in c-stores. That is when vape stores started opening up. They were mainly concentrating on open system (eliquids, mods and great tasting flavors). For a short time c-stores tried to sell eliquids, but they didn’t have the know how or the time to educate customers. C-stores were good at selling closed systems and vape stores were good at open systems.
To the uninformed public we are all lumped in as one industry --- electronic cigarettes.
In reality there are 2 different industries that are somewhat related.
A) The ecig/closed system industry: In the USA as of Sep 2019 is a $6.4 billion industry. It is controlled mostly by big tobacco companies. Juul (Altria/PM), Blu (Imperial Tobacco), Vuse (British Tobacco, formerly RJR), Njoy (only independent supplier), Logic (Japan International). 75% of ecigs are sold in C-Stores, drug stores and food stores. As a comparison, regular cigarette sales in the USA are around $80 billion dollars and about 75% comes from c-stores.
While ecigs sales increased at a 40% year over year rate, regular cigarette sales dropped by 7% year over year. That is a large number that is troubling to big tobacco.
The closed system industry sells primarily tobacco and menthol/mint flavors. If flavors were banned it would not impact the industry very much. The companies selling closed systems are not going to join our fight to save flavors. They have no monetary incentive to do so. In addition all of these companies are going to apply for PMTA. They are not going to sue the FDA and risk getting PMTA approval unless it greatly impacts their business.
The vapor/open system industry: In the USA as of sep 2019 is a $2.6 billion industry. It is NOT controlled by a few large companies. There are a lot of hardware and ejuice suppliers. It is mostly sold at adult only vape stores. $1.7 Billion sold at vape stores, $350 million in c-stores and $550 million online. Lots of suppliers, distributors, small businesses are part of this industry. They mostly sell flavored eliquid as opposed to tobacco and menthol flavors.
Having been involved with both the ecig business and the vape business, I can say that they are completely different. The vape industry is getting punished for crimes committed by the ecig industry. Unfortunately we are being lumped in as one. We are the easier one to target. We need to do a much better job getting this message out.
I would also like to make a point regarding zero nicotine flavors being regulated by the FDA. The reason our industry is regulated by the FDA as a tobacco product is because the eliquid contains nicotine. This is the only reason the FDA has authority over these products. Because zero nicotine ejuice does not contain nicotine, it is no longer a tobacco product. While the FDA is going to try and enforce regulation of zero nicotine ejuice as a tobacco product by using the “intent to use” rationale, that argument is simply not valid. The FDA will also not be able to regulate zero nicotine ejuice as a drug/drug device combination either. Ejuice with no nicotine does not cause a change in the body and therefore will not be classified as a drug. This is only my educated opinion. I am not an attorney and am not making any legal claims.
I hope this was somewhat informative to people that have not been involved with ecigs and vapes as long as I have. Feel free to add, correct if you have information that I missed.
Feel free to share
With permission
I am the owner of Sapphyre Nicotine. I have been in the e-cig and vape business since 2009. This post is a little long but hopefully it is informative for some.
In 2009 the FDA started seizing shipments of electronic cigarettes under the claim that they were drug delivery devices and therefore need to pass FDA approval prior to being marketed and sold in the USA. The industry was just starting out and this was a big blow. Shipments of product were not allowed to enter the USA. Credit card companies were not allowing ecig companies to work with them. It was not looking good for ecigs. A company called Smoking Everywhere sued the FDA and made the argument that ecigs should be regulated as a tobacco product since they contained nicotine which is derived from Tobacco. Njoy joined the litigation and eventually took over when Smoking Everywhere went out of business. In 2010 Njoy won the litigation and ecigs ended up being regulated as tobacco products. This was the best outcome of two evils. The FDA appealed the decision and lost that as well. That’s when the ecig industry really started taking off. Bigger players got into the market and eventually RJR, Altria/Philip Morris, BAT and other big tobacco companies came out with ecig products. They quickly became the dominant sellers in c-stores. The tobacco companies were happy selling tobacco and menthol flavors only. That’s what they knew and that’s what they were good at.
A few years later eliquids and open systems started getting popular. These products were not very popular in c-stores. That is when vape stores started opening up. They were mainly concentrating on open system (eliquids, mods and great tasting flavors). For a short time c-stores tried to sell eliquids, but they didn’t have the know how or the time to educate customers. C-stores were good at selling closed systems and vape stores were good at open systems.
To the uninformed public we are all lumped in as one industry --- electronic cigarettes.
In reality there are 2 different industries that are somewhat related.
A) The ecig/closed system industry: In the USA as of Sep 2019 is a $6.4 billion industry. It is controlled mostly by big tobacco companies. Juul (Altria/PM), Blu (Imperial Tobacco), Vuse (British Tobacco, formerly RJR), Njoy (only independent supplier), Logic (Japan International). 75% of ecigs are sold in C-Stores, drug stores and food stores. As a comparison, regular cigarette sales in the USA are around $80 billion dollars and about 75% comes from c-stores.
While ecigs sales increased at a 40% year over year rate, regular cigarette sales dropped by 7% year over year. That is a large number that is troubling to big tobacco.
The closed system industry sells primarily tobacco and menthol/mint flavors. If flavors were banned it would not impact the industry very much. The companies selling closed systems are not going to join our fight to save flavors. They have no monetary incentive to do so. In addition all of these companies are going to apply for PMTA. They are not going to sue the FDA and risk getting PMTA approval unless it greatly impacts their business.
The vapor/open system industry: In the USA as of sep 2019 is a $2.6 billion industry. It is NOT controlled by a few large companies. There are a lot of hardware and ejuice suppliers. It is mostly sold at adult only vape stores. $1.7 Billion sold at vape stores, $350 million in c-stores and $550 million online. Lots of suppliers, distributors, small businesses are part of this industry. They mostly sell flavored eliquid as opposed to tobacco and menthol flavors.
Having been involved with both the ecig business and the vape business, I can say that they are completely different. The vape industry is getting punished for crimes committed by the ecig industry. Unfortunately we are being lumped in as one. We are the easier one to target. We need to do a much better job getting this message out.
I would also like to make a point regarding zero nicotine flavors being regulated by the FDA. The reason our industry is regulated by the FDA as a tobacco product is because the eliquid contains nicotine. This is the only reason the FDA has authority over these products. Because zero nicotine ejuice does not contain nicotine, it is no longer a tobacco product. While the FDA is going to try and enforce regulation of zero nicotine ejuice as a tobacco product by using the “intent to use” rationale, that argument is simply not valid. The FDA will also not be able to regulate zero nicotine ejuice as a drug/drug device combination either. Ejuice with no nicotine does not cause a change in the body and therefore will not be classified as a drug. This is only my educated opinion. I am not an attorney and am not making any legal claims.
I hope this was somewhat informative to people that have not been involved with ecigs and vapes as long as I have. Feel free to add, correct if you have information that I missed.
Feel free to share