What they did in their summer vacation

It's that time of year again. The days are growing shorter, and parents are scurrying to find school outfits for children who have suddenly grown taller. Soon, teachers will be assigning their charges with the ritual essay "how I spent my summer vacation", and using the results to build their lesson plans for the coming year.

This post reviews actions of the tobacco industry over the summer months  -- and points the way to issues that health regulators may want to turn their attention to.

Yet more nicotine products on the horizon

1) Canadian-made PODA pods

A new entry in the "what nicotine product will they think of next" category is being promoted to investors this week. Vancouver-based Poda Lifestyles has developed a heat-not-burn nicotine device that replaces tobacco with synthetic nicotine and tea leaf pellets. They tell investors that this product is "outside the scope of existing tobacco regulations and duties". The team which is guiding this initiative includes alumni from Philip Morris and JUUL.

It would appear that Heat-not-burn nicotine-tea devices may fall outside Canada's federal tobacco laws? Because they are not made of tobacco and if don't produce an aerosol, they are likely not captured by the current definitions in the Tobacco and Vaping Products Act.

2) TJP and Canadian-made nicotine pouches

An Ontario factory is planning to manufacture 36 million nicotine pouches per month starting early next year. TJP announced last month that it had recruited investments to permit production out of Pickering, a short distance from Toronto. This privately-held company began as the maker of "The Juice Punk" e-liquids.

Nicotine pouches are not currently legal for sale in Canada, as they fall under the Food and Drugs Act and thus require authorization. Last year Health Canada issued an advisory that they were "unauthorized" and demanded that some be pulled from the market.

In recent years they have become energetically marketed in other countries as a harm-reduction product.

Big Tobacco drifts towards Big Pharma

Philip Morris International is the owner of Rothmans, Benson and Hedges, a company which sells about  4 in 10 of the cigarettes legally sold in Canada. Both the international company and its Canadian operation have ramped up their efforts to "transform" their operations to sell an enhanced range of nicotine and non-nicotine products, redeem their reputations and regain influence over public policy. 

This summer PMI made headlines as it attempts to acquire Vectura, a manufacturer of inhaled delivery systems for asthma and chronic lung disease medications manufactured by other pharmaceutical firms. Its ownership by a tobacco company has raised concern and alarm among U.KI. health charities. 

PMI has recently acquired other pharmaceutical companies, including OtiTopic (which makes medications for heart disease) and Fertin (which makes gums and other oral delivery systems, including NRT and cannabis). 

PMI now has a foothold in 2 Canadian pharmaceutical operations. It will soon own 100% of Fertin's Canadian operation, Nordiccan (which currently markets cannabinoid pouches in Canada) and 40% ownership of Medicago (which controversially received federal funding to work on a COVID vaccine).

Philip Morris International tries steer Endgame thinking

In July, the new CEO of Philip Morris International (Jacek Olczak) made headlines by calling on the U.K. government to ban cigarettes within the next 10 years. The United Kingdom is currently developing a new (post-Brexit) tobacco plan. In 2019, the government called on the industry "to make smoked tobacco obsolete", but few established tobacco control leaders in that country are calling for legal controls to make that happen. 

Rothmans, Benson and Hedges gets citizen volunteers to clean up its commercial waste

Cigarette filters are a single-use plastic that is one of the most frequent forms of litter and a source of pollutants, which is why there is increasing pressure for regulations that impose producer responsibility on the industry. In an apparent effort to head regulations off at the pass, Philip Morris' Canadian operation is trying to gain a leading position in the Canadian response to cigarette waste. 

This summer it ramped up these efforts on two fronts. 

1. Through a partnership with Terracycle, Rothmans, Benson and Hedges is funding community groups to sign up to collect cigarette butts (either through sweep-up operations or public ashtrays) and remit them in return for gifts or cash. Each pound of waste is worth $1. This summer a "sweepstake" contest offered incentives to newly recruited locations and individuals.

2. This summer, RBH offered grants of up to $5,000 to non-profit organizations to support litter cleanup projects (the activities were not restricted to tobacco waste). Eligible expenses were restricted to organizing, hosting and promoting -- groups would receive money for the equipment required to conduct the cleanup, but were expected to provide volunteer labour. This summer $75,000 in grants were provided: the predominant  recipients seem to be ATV clubs.  

More grants were offered at the end of the summer for projects in education, environment and community development. (Notwithstanding the FCTC recommendations that government "denormalize and, to the extent possible, regulate activities" like these, the Canadian government has remained silent on this RBH initiative).

Japan Tobacco has withdrawn its e-cigarettes from Canada

This spring JTI notified consumers that it would be pulling out of the Canadian market in August, and did so by mid-month. Despite Canada being one of the world's six largest vaping markets, two major tobacco companies have decided to abandon efforts to market their e-cigarettes here. Imperial Brands pulled its myBlu e-cigarettes in July 2020, citing Canada's packaging and labelling requirements. JTI did not acknowledge whether the regulations to cap nicotine were a factor in its decision to quit Canada, although it remains active in other markets where nicotine levels are similarly controlled.   

Imperial Tobacco Canada is looking to expand into non-nicotine products

In late spring, Imperial Tobacco Canada (which is owned by British American Tobacco) launched a new strategy for its operations in Canada. Their press release highlighted their recent acquisitions in cannabis production and their intention to extend their marketing beyond tobacco and nicotine ("For our consumers, we want to offer a range of enjoyable and responsibly marketed products in tobacco, nicotine and beyond.")

Some vaping liquid manufacturers have found a work-around Canada's 20 mg/ml nicotine cap.

On July 23rd, new federal regulations banned the sale of vaping liquids that contained more than 20 mg/ml of nicotine. The very next day, one of Canada's older vaping producers (Theravape) informed consumers that the new ISO methods required by Health Canada meant that products that were previously sold as 34 mg/ml could now be considered 20 mg/ml. They were able to lower the amount by consideringly the nicotine molecules in a nicotine-salt compound.

Theravape's clients were reassured: "A new 20mg/mL salt nic ejuice will now be as strong as an old 36mg/mL."

Health Canada adopted the ISO standard that results in this down-grading after being encouraged to do so by vaping manufacturers. The World Health Organization has also recognized the ISO standard. 

 

 Rothmans revamps its retailer contracts

Tobacco companies give rebates to retailers in return for promotional concessions. This summer, RBH revamped its retail contracts to offer rebates of $4.50, $5.50 or $6.50 on each carton of cigarettes. To get the lowest rebate, retailers must participate in on-line 'training' sessions that inform them how to promote brands, gather data for the company and accept minimum shipments of some products. Higher discounts are given to retailers which sell IQOS, and higher yet to those who are trained to encourage smokes to use IQOS. 

Someone is investing heavily to mobilize against flavour bans

Most major tobacco control reforms have been met with well-organized opposition efforts that are framed as citizen's movements. For decades, tobacco companies created the "Smokers' Freedom Society", PUBCO and restaurant associations, the Alliance for Sponsorship Freedom, and other organizations as a seemingly human shield against public health regulations. 

The is summer Rights4Vapers has all the hallmarks of an industry-funded ersatz-grassroots effort. With a large RV with a specialty skin, a handful of campaigners are working their way through a 26 day tour of Ontario and Quebec to mobilize opposition to regulations on vaping products. 

The printed placards, t-shirts, and the social-media presence suggest a well-funded and professionally organized effort. The only thing missing so far has been a crowd to mobilize. 

Their kick-off rally in Ottawa, billed as drawing 500 to 600 protesters, was attended by about 100 people, many of whom appeared to be vaping store owners who were thanked at the end of the small demonstration for coming to Ottawa from across Ontario to participate. 

JUUL recruits medical journal to publish a volume of pro-vaping studies

In early summer, the American Journal of Health Behaviour published a supplemental volume with 11 studies funded or authored by JUUL which promote the health benefits of their products. It was later revealed that JUUL had paid the journal US$51,000 for the publication. The publication prompted criticism from researchers, public health bodies and politicians. 

New trademarks show how flavour descriptors are used as branding

Each of the companies has filed trademarks in Canada this summer which point to potential new  marketing activities.

Only weeks after Health Canada published a proposal to restrict flavours other than tobacco, mint, menthol and combinations of those three flavours, BAT's e-cigarette branch trademarked new mint brand descriptors for its VUSE e-cigarettes: River Mint and Forest Mint. It also registered a brand name for cannabis-vaping liquids (CBD Mix) and for a new specialty store Vusionry  BAT also registered a new design for its NRT, ZONNIC, which is manufactured by BAT-owned Niconovum and currently marketed in the United States.  

 

This summer, Philip Morris International filed almost two-dozen trademarks for vaping products and heated tobacco products with unusual and evocative names: Yugen, Noor, Apricity, Terea Turquose, Tidal Pearl, and others.