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What a ban on electronic cigarette flavors for Big Tobacco could mean

According to a report from the US Food and Drug Administration. UU. (FDA, for its acronym in English), service stations and convenience stores may not sell electronic cigarette products in child-friendly flavors. The Washington Post. The ban, which is expected to be announced next week, is a step towards fighting what the FDA calls a youth vaping epidemic. But depending on how the ban develops, it could also be a great victory for Big Tobacco.

This is not a general prohibition of vapes, according to the Send, which quotes an official FDA official. Service stations and convenience stores may continue to sell mint or menthol-flavored pods, but not those that taste like mango or nctar. (It is not clear if tobacco flavors will be allowed). Sales of flavored products can be allowed in tobacco and vape stores, as well as in online stores with strict age verification settings. Vape stores may continue to sell open tank vapes and liquids that come in bottles, the Send reports.

The ban hit Juul the hardest.

We do not know exactly how the prohibition works or if there will be any. (The FDA is not commenting). However, if the prohibition Send Describe if it advances, affect the vapes of closed system pods in general. That is what most affects Juul, says Jidong Huang, an associate professor at Georgia State University who specializes in the tobacco control economy. Part of Juul's appeal is its flavors, he says. And because Juul has dominated more than 70 percent of the electronic cigarette market, dropping it on its knees is good news for other tobacco companies whose products are not as competitive.

In addition, smoking cigarettes is at a historic minimum. Public health experts say that we cannot definitively attribute each of the smokers to the increase in vaping. But most adults who use electronic cigarettes also use cigarettes, which means that tobacco companies are losing the nicotine delivery market. Analysts say that what is bad for Juul is good for tobacco companies, including those that make their own vapes. "We continue to believe that any FDA action to restrict sales of electronic cigarettes to minors benefit tobacco manufacturers," says Bonnie Herzog, general director of capital research at Wells Fargo Securities LLC, in an analysis mailed electronic. "Therefore, we expect tobacco stocks to be traded on the news."

"Therefore, we expect tobacco stocks to be traded on the news."

Juul is independent of Big Tobacco companies, unlike brands such as Blu, Vuse and MarkTen. And it is unlikely that extracting flavored vape cartridges from convenience store shelves hit Big Tobacco in your pocket, says Huang. After all, the tobacco giant Altria decided to throw away its flavored products even prior to the Washington PostThe spoonful. "It is not because they are of public health; it is because it does not affect their final result," Huang says. "It is very likely that this ban benefits the tobacco industry in general."

James Campbell, a spokesman for Fontem Ventures, the company behind Blu e-cigs and a subsidiary of the Imperial Brands PLC tobacco company, also believes that this ban could be good for business. "A significant proportion of our sales are tobacco, menthol and mint and we have multiple product formats," Campbell says in an email to The edge. "So we will come out of this as competitive or more competitive than before."

Spokesmen for British American Tobacco (the company behind the Vuse line) and JT International (the company behind Logic) say they are waiting to see the official FDA plan before speculating about its effects. Altria did not immediately respond to an email inquiry. Juul declin comment though the Wall Street Journal He informs that Juul is already making moves to get his friendly flavors for children from the shelves of retailers. It seems that the giant of electronic cigarettes can meet the FDA without a fight.

"It is very likely that this ban benefits the tobacco industry in general."

The ban aims to address the main public health concerns about a generation of young people who engage in vaping and nicotine. With regard to public health, Huang predicts that the effects of such a ban will be mixed: he hopes it will restrict sales in retail stores and reduce youth vaping, but it may make it more difficult for adults to switch from electronic cigarettes to fuels . "What is complicated is that taste is something that children like, but taste is something that adult smokers also like," says Huang.

However, while we know that flavored vapes are important start-up products for children, the jury still does not know how important flavors are when they help adults quit smoking. It is true that, for adult smokers, electronic cigarettes are considered less harmful than normal, according to a massive report from the National Academies of Science, Engineering and Medicine. The problem is that we still don't know its long-term effects, and a growing number of children are using them. While the Centers for Disease Control and Prevention and the FDA have not published the latest numbers, FDA commissioner Scott Gottlieb said the data reveals an "epidemic of electronic cigarette use among teenagers."

It is not clear what the prohibition really prohibits because the FDA has refused to comment. the Send He did not say, for example, if the FDA also intends to stop sales of flavored cigarettes and cigars, which Desmond Jenson, a lawyer at the Mitchell Hamline School of Public Health Law Center, considers it important to include.

"Fuel products are the most dangerous."