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New E-Vapor Game in Play Now That the FDA’S Initial Regulatory Framework on the E-Cig/Vapor Market Has Been Revealed, the Industry Weighs More Educated Moves

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New E-Vapor Game in Play Now That the FDA’S Initial Regulatory Framework on the E-Cig/Vapor Market Has Been Revealed, the Industry Weighs More Educated Moves Meet Drew Estate’s Joya Red JULY/AUGUST 2014 VOLUME 17 n NUMBER 4 New E-Vapor Game in Play Now that the FDA’s initial regulatory framework on the e-cig/vapor market has been revealed, the industry weighs more educated moves. Cigar Sense: A Convenient Approach Trench Marketing: When Bigger is Better Highlights From the Inaugural Vapor World Expo PUBLISHER’S LETTER BY ed o’connor When Is the Best Time to Get Ready for TPC 2015? NOW! TPC 2015 takes place at the Las Vegas Convention Center January 28-29, 2015. Each year we provide you with exit interview feedback from the show. At TPC 2014, we ran- domly interviewed 120 attendees and exhibitors as they left the hall. Here’s what they told us. What was your purpose Which category Top answers to: Was there for attending TPC 2014? do you represent? anything you were looking for 21% at the show that wasn’t there? Online 38% 41% 51% 1. More tobacco companies Wholesale E-Cigarettes See new 2. More distributors products 41% 3. RJReynolds Retail 4. Phillip Morris 5. More cigarettes 6. FIN 8% Visit a supplier How many nights did you Top answers to: What did you Was this your first time at the show? spend in Las Vegas? like best about TPC 2014? 21% 1. Las Vegas 36% 36% Two 2. New products 3. Exhibitors No 64% None 21% Yes 4. Beautiful setup 22% One 5. Very informative Three 6. Everything in one place 7. Variety of vendors How many employees Top answers to: What did you How did you hear about the show? are in your business? like least about the show? 1. Registration Direct mail 17% 1-3 26% 2. Music too loud Telemarketing 10% 4-6 25% 3. No food served in the hall 4. Suggest giving directions Internet 27% 7-12 14% from LVH to convention center in confirmations Word of mouth 36% 13-20 17% Magazine ad 10% 20+ 18% We hope you had a good show and that if you came as an attendee, you How many years have you found the items and variety that you Of those who were not been in business? needed. If you exhibited, we hope the investment proved to be profitable. first-timers, 99 percent 1-2 Years 34% Most of all, we hope to see you next said that TPC 2014 was a 3-5 Years 21% year in Vegas. better show than previous Get ready for TPC 2015 now! 6-10 Years 18% years’ shows. 10+ Years 27% Best to you and good selling, 4 TOBACCO BUSINESS INTERNATIONAL JULY/AUGUST 2014 INSIDE THIS ISSUE CIGAR SENSE A Matter of Convenience 30 Premium cigars are making more tracks through the convenience store channel. FEATURES COVER STORY New E-Vapor Game in Play 42 Now that the FDA’s initial regulatory framework on the e-cig/vapor market has been revealed, the industry weighs more educated moves. Electric Alley: Ten Quick Truths 38 Vapor World Expo’s Debut, page 56 Don’t blink—the e-cig/vapor category is moving and changing rapidly. Here are 10 up-to-the minute market realities heard and reported at Vapor World Expo. Vapor World Expo’s Debut 56 Held in Rosemont, Illinois, the first annual vapor, business-to-business industry event was a huge hit for the emerging industry. Ten Tips to Trade Show Success 58 These ideas can help boost your sales at shows like IPCPR, TPC and VWE. Is U.S.-Extracted Nicotine a Reality? 60 USA Liquid Nicotine says that it’s ready to sell pure liquid nicotine extracted from tobacco grown in the U.S. Their Table Is Definitely Ready, page 64 Their Table Is Definitely Ready 64 Four-year-old St. Louis cigar company Table 36 is launching its third boutique cigar. Event Highlight: Smoker’s Haven Hosts Torano Tasting 72 Cigar tastings and dinners draw a big crowd for this New Jersey retail chain. C-Store Corner: No Thanks to Tanks 74 While more consumers are trading cig-alikes for tank-style vapor devices, can c-stores hang onto their electronic product market share? Trench Marketing: Big Kid on the Block 78 Cigars International leveraged Internet success to become a brick-and-mortar powerhouse. Smoker’s Haven Hosts Torano Tasting, page 72 Publisher’s Letter ...................................................................... 4 When Is the Best Time to Get Ready for TPC 2015? NOW! News & Trends ........................................................................ 12 FDA proposed regulation, Zippo sues Lorillard and more. TMA Report ............................................................................ 22 A roundup of industry news Category Manager .................................................................... 26 Vaping: A Market Share Shakeout Pipe In Hand ........................................................................... 36 Brotherhood of the Pipe Product Profile ........................................................................ 86 A guide to new and popular outlet products Trench Marketing: Big Kid on the Block, page 78 NEWS & TRENDS JULY/AUGUST 2014 FDA Proposes Extending Authority Agency looks to oversee currently unregulated marketed products, including e-cigarettes, cigars and pipe tobacco. n April, the U.S. Food and Drug the product will benefit public health The proposal includes a provision Administration released its long- as a whole; and that would give all regulated entities, Iawaited proposal to extend the • Not distribute free samples. including small businesses, “adequate agency’s tobacco authority to cover In addition, the new rule would ap- time” to comply with the new require- additional tobacco products. Prod- ply the following provisions to newly ments, says a spokesperson for the ucts that would be deemed subject deemed tobacco products: agency. The proposal will be available to FDA regulation are those that meet • Minimum age and identification for public comment for 75 days. While the statutory definition of a tobacco restrictions to prevent sales to under- the FDA has pledged to consider all product, including currently unregu- age youth; comments, the agency has specified lated marketed products, such as • Requirements to include health certain areas where it is particularly electronic cigarettes (e-cigarettes), warnings; and interested in input on cigars and e-cig- cigars, pipe tobacco, nicotine gels, • Prohibition of vending machine arettes. The FDA’s original requests to waterpipe (or hookah) tobacco, and sales, unless in a facility that never that effect are as follow: dissolvables not already under the admits youth. • “The FDA recognizes that different FDA’s authority. The FDA currently “This is an important moment for tobacco products may have the poten- regulates cigarettes, cigarette to- consumer protection and a significant tial for varying effects on public health bacco, roll-your-own tobacco, and proposal that if finalized as written and is proposing two options for the cat- smokeless tobacco. would bring FDA oversight to many egories of cigars that would be covered “This proposed rule is the latest new tobacco products,” explains FDA by this rule. The FDA specifically seeks step in our efforts to make the next Commissioner Margaret A. Hamburg, comment on whether all cigars should generation tobacco-free,” says Health M.D. “Science-based product regula- be subject to deeming, and which other and Human Services Secretary Kath- tion is a powerful form of consumer provisions of the proposed rule may be leen Sebelius. protection that can help reduce the appropriate or not appropriate for differ- Under the proposed rule, makers public health burden of tobacco use ent kinds of cigars.” of newly deemed tobacco products on the American public, including • “The FDA seeks answers to the would be required to: youth.” many public health questions posed • Register with the FDA and report “The proposed rule would give the by products, such as e-cigarettes, product and ingredient lists; FDA additional tools to protect the that do not involve the burning of to- • Only market new tobacco prod- public health in today’s rapidly evolv- bacco and inhalation of its smoke, as ucts after FDA review; ing tobacco marketplace, including the agency develops an appropriate • Only make direct and implied the review of new tobacco products level of regulatory oversight for these claims of reduced risk if the FDA and their health-related claims,” adds products. The FDA seeks comment confirms that scientific evidence sup- Mitch Zeller, director of the FDA’s in this proposed rule as to how such ports the claim and that marketing Center for Tobacco Products. products should be regulated.” Swedish Match Seeks Modified-Risk Designation Company hopes to free General snus from warning label requirements. Swedish Match has applied for FDA ap- efits for the public. “Swedish snus is very In keeping with FDA recommendations, proval to market its General snus product well scientifically documented and our the company has been proactive in en- line as a modified-risk tobacco product application consists of more than 100,000 gaging with the agency on its submission, (MRTP). If approved, the company will pages,” says Lars-Erik Rutqvist, senior vice meeting with FDA representatives to dis- be able to deviate from the warning label president of scientific affairs at Swedish cuss the format and data requirements for requirements that apply to all tobacco Match. “As an industry leader, we must its MRTP application. products. properly apply the evidence to demon- Swedish Match’s corporate headquar- In the application, Swedish Match cites strate the potential public health benefit of ters are located in Stockholm, Sweden and 12research showing that snus has health ben- our snus tobacco products.” its U.S. division is in Richmond, Virginia. TOBACCO BUSINESS INTERNATIONAL JULY/AUGUST 2014 NEWS & TRENDS JULY/AUGUST 2014 HigHligHts Miami Cigar & Company Launches M&R Holdings New Look and New Leadership Transitions Bill West has joined M&R Holdings’ Nestor Miranda is celebrating his company’s 25th anniversary national sales force. West has sev- by announcing a new design and changes in company eral years of experience in different facets of the tobacco industry as management.
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