NEW YORK, Aug 8 (Reuters) - The e-cigarette market is suddenly getting more crowded.
Makers
of the "vaping" devices launched a flood of new products in the United
States ahead of new federal regulations, taking effect on Monday, that
require companies to submit e-cigarettes for government approval before
marketing them, according to company officials and industry experts.
The
U.S. Food and Drug Administration, which announced the regulations in
May, will allow e-cigarette devices introduced before the regulations
came into force to be sold for up to three years while companies apply
and await regulatory review.
The
regulations also ban the sale of e-cigarettes to anyone under age 18.
The multibillion-dollar industry had sought to delay the new rules
through lawsuits and proposed legislation in the U.S. Congress. At the
same time, many of the smaller players hedged their bets by releasing
new products during the three-month period between the announcement of
the regulations and their effective date.
"I
would be surprised if there was any other period when so many products
were introduced," said Bryan Haynes, an attorney with the firm Troutman
Sanders who represents several e-cigarette companies.
Not
of all the new products may be available immediately to consumers. Many
companies beat the regulatory deadline with only limited shipments and
product prototypes."There are scores of new products getting out ahead"
of the deadline, said Oliver Kershaw, founder of the website
e-cigarette-forum.com that tracks the industry.
"They've
been put quietly into the market. Some of them are just brand
refreshers. Some are quite interesting products," Kershaw said,
referring to such innovations as "pods" - capsules that can be inserted
into the devices - that are prefilled with flavored nicotine.
The
FDA regulations for the first time bring regulation of e-cigarettes,
cigars, pipe tobacco and hookah tobacco in line with existing rules for
cigarettes, smokeless tobacco and roll-your-own tobacco.
The
rules require companies to submit these products for government
approval, list their ingredients and place health warnings on packages
and in advertisements.Cigar makers also rushed new products to the
market to beat the regulations.
"We
have attempted to do in 90 days what we usually do in three years,"
said Eric Newman, president of J.C. Newman Cigar Co, in business since
1895. "If it wasn't so serious, it would be comical to see the hoops
we're going through."
BIG COMPANIES MAY BENEFIT
E-cigarettes
are handheld electronic devices: metal tubes that heat liquids
typically laced with nicotine and deliver vapor when inhaled. The
liquids come in thousands of flavors, from cotton candy to pizza. Using
them is called "vaping."
Reynolds
American Inc, Altria Group Inc and Fontem Ventures, a subsidiary of
Imperial Brands Plc, are among the leading manufacturers of the devices.
Their use has grown quickly in the past decade, with U.S. sales
expected to reach $4.1 billion in 2016, according to Wells Fargo
Securities.
The
healthcare community remains divided over the devices. Some experts are
concerned about how little is known about their potential health risks
and about growing use by teenagers, fearing that a new generation will
become hooked on nicotine.Others support them as a safer alternative to
tobacco for smokers unable to quit.
The
FDA regulations are expected to shutter many "vape shops" that make
their own products and cannot afford undergoing the approval process.
The rules may benefit the big manufacturers, especially tobacco
companies like Reynolds and Altria, which have the checkbooks and
experience to navigate regulatory agencies.
Despite
the new rules, France's leading manufacturer of "e-liquids" used in the
devices started doing business in the United States last month. The
company said it hoped the new market could help double its current sales
of about $55 million.
"The
vaping consumer is going to be drowned in a lot of new products," said
Arnaud Dumas de Rauly, president of Gaïatrend USA, referring both to new
devices and to types of liquids.Reynolds, which makes the top-selling
VUSE, did not introduce any new products this summer. Altria launched
new flavor varieties including Menthol Ice and Smooth Cream.
Altria's
Nu Mark e-cigarette company "has a robust pipeline of products and
takes a disciplined approach to introducing those products to understand
adult smoker and vaper acceptance," Altria spokesman Steve Callahan
said.Callahan said the company was also mindful of the requirements of
the new regulations and complying with the timelines the FDA
established.
Mistic
E-Cigs had planned to introduce sometime this year a new product called
the Mistic 2.0 POD-MOD personal vaporizer, which has pods prefilled
with liquids, but said its staff worked 14-hour days to ensure it was
ready before the regulations took effect.
"We
got a little lucky but we had to work a little extra hard," said Justin
Wiesehan, Mistic's vice president of regulatory affairs. (Reporting by
Jilian Mincer; Editing by Michele Gershberg and Will Dunham)
Resource: http://news.trust.org/item/20160808110121-uqb5i/
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