Juul Labs reached an agreement in principle to pay $438.5 million to nearly three dozen states to resolve a two-year bipartisan probe.
Juul Labs reached an agreement in principle to pay $438.5 million to nearly three dozen states to resolve a two-year bipartisan probe.
In the cannabis industry, branding (which includes packaging, product makeup and thoughtful analysis of the target consumer among other things) has proven to be a major factor in promoting customer loyalty across a wide range of products. Headset’s latest report, “Cannabis Brand Loyalty: A Look At California Vapor Pens”, leads off by invoking the archival image of a plastic baggy full of musty weed traded off in parking lots and clubs. But today’s cannabis product packaging runs the gamut from the utilitarian to the wildly creative. With the horizons of the cannabis market constantly expanding, it is crucial for companies to identify the ideal consumers for their products and how to market towards them for maximum profits.
The report defines brand loyalty as the tendency of a customer to continue to purchase from one brand loyalty is the tendency of a customer to purchase from the same brand over time. To this end, using California Vapor Pen brands as a model (a product sector that sees a high amount of brand loyalty), Headset’s report investigates three different ways to measure brand loyalty. Using real-time sales reporting, Headset’s data comes directly from partner retailers. This specific report looks at purchase patterns (or how a customer shops over time) and uses the results to paint a picture of customer loyalty. The report is careful to note that both high and low brand loyalty have their merits, citing companies who have the goal of reaching new customers in the market as those with a deliberate low brand loyalty strategy that can still yield solid profits.
Headset’s first strategy for measuring brand loyalty was looking at repeat purchase rates or the percentage of customers that repurchase a brand in a set time period. In California, 45% of customers re-purchase their products after 6 months. 12.6% of these customers will only re-purchase from a particular brand while 32.6% will purchase other brands in addition to their previously chosen brand. The report highlights this as significant given that people have such varied tastes and there are so many products to choose from. STIIIZY and Plug Play two vape pen brands with markedly high brand loyalty hardware are highlighted here as they both have proprietary hardware that pushes customers to repurchase their brands. However, over 50% of both brands still purchase from other brands even if they have to purchase different batteries, reflecting the aforementioned desire for variety among consumers.
Next, the report measures brand loyalty by looking at switching behaviors, which is when a customer chooses to buy a product from a brand similar to the initial brand chosen. This is a valuable metric as it helps businesses understand their own brands, how they are perceived by their, who their greatest competitors are and why. Headset’s report looks at Legion of Bloom customers and what other brands they are purchasing. The analysis showed that nearly a quarter of Legion of Bloom’s customers purchased a STIIIZY product- valuable information for both brands when considering branding strategies and how to make themselves more competitive.
Finally, the Headset report sought to measure brand loyalty by exploring wallet share across product categories, which is the percentage of a customer’s cannabis spending that goes towards a specific brand. Nearly 40% of the average Vapor Pen consumer’s wallet share is spent on their top brand, which reinforces the high rate of brand loyalty in this product category and may prompt vape pen brands to consider strategies like proprietary technologies to capitalize on this particular market dynamic.
In a big “oops we goofed,” the Food and Drug Administration (FDA) took back its September 14 Marketing Denial Order for some of Turning Point Brands, Inc. (NYSE: TPB) vape products. Turning Point said all of its proprietary vape products, including its Solace branded e-liquids, will continue to be marketed while they remain under review. They are currently under a pending Premarket Tobacco Product Applications (“PMTAs”) review.
Turning Point said that in its rescission letter the FDA stated, “Upon further review of the administrative record, FDA found relevant information that was not adequately assessed. Specifically, your applications did contain randomized controlled trials comparing tobacco-flavored ENDS to flavored ENDS as well as several cross-sectional surveys evaluating patterns of use, likelihood of use, and perceptions in current smokers, current ENDS users, former tobacco users, and never users, which require further review.” The letter further clarified that “at present, in light of the unusual circumstances, FDA has no intention of initiating an enforcement action against” the products.
“We are encouraged by the FDA’s decision to reconsider our product applications and look forward to engaging the agency as our PMTAs are reviewed,” said Larry Wexler, President and CEO, Turning Point Brands. “It is important that the PMTA process is transparent, purposeful, and evidence-based. Our organization dedicated significant time and resources in filing our applications in accordance with agency guidance. We remain hopeful that the depth and range of our studies and data will persuade the FDA that the continued marketing of our vapor products is appropriate for the protection of the public health and that the agency will ultimately preserve a diverse vapor market for the more than 30 million American adult smokers who may wish to transition from combustible cigarettes to lower risk alternatives.”
Turning Point had been selling vape products under the label Solace with flavors like Peach, Mango, and Marshmallow Crispy. These sugary flavors have been very popular with underage consumers and were a big selling point for the competitor Juul. Solace noted on its website that Federal law required e-liquid companies to submit a Premarket Tobacco Product Application (PMTA) to the U.S. Food and Drug Administration (FDA) in order to continue selling products in the United States. These applications require that e-liquid companies demonstrate that products are “appropriate for the protection of public health.”
Turning Point has reported spending $14 million in 2020 on the PMTA application according to the company’s annual filing. In 2019, the company spent $2.2 million on the PMTA. Turning Point also said that as a result of the rescission letter, it withdrew both the petition for relief and motion to stay that it had filed with the 6th Circuit Court of Appeals.
Some people like to smoke cannabis, others like to eat it—and some like to vaporize it! As places around the world continue to legalize cannabis, businesses are realizing the opportunities to be had in this growing market.
Each year, consumers look forward to innovations in technology. When it comes to cannabis vapes, the market is booming with new devices and tweaks to existing products. Entrepreneurs don’t want to miss the opportunity to create the next best vape.
Cannabis vape tech is taking off globally, and here are 3 reasons why:
During the pandemic, many consumers have reported that their medical use of cannabis for mental health reasons has increased. In addition, more and more states are legalizing the medical and recreational use of cannabis. To meet the rising demand, and to accommodate new consumers, vaping technology is advancing rapidly.
Whether consumers prefer to use dry flower or oil in their vapes, there’s a device on the market designed to meet their needs. Pods, pens, and box mods—you name it, there’s a cannabis vape for it. Now that demand is increasing for cannabis vapes, new products are being designed to accommodate them.
To gain a competitive edge in the market, there are new vaporizers coming out. Some utilize technology for a more user-friendly experience, like disposable or pre-filled vapes. Others focus on sustainability to appeal to eco-conscious consumers. Features like longer battery life, self-cleaning, and the shatter-resistant casing will set cannabis vapes apart in a saturated market.
Producers are always racing to meet the needs of the market, and in 2021, the market is full of opportunities for innovative vape devices. Given how recently cannabis was legalized in many states and countries, there’s plenty of room for growth—the question is, who will capitalize on it first?
Given the global outbreak of respiratory illness, more consumers are moving away from smoking and gravitating towards vapes. When cannabis is vaporized, it’s consumed at a lower temperature than when it’s smoked. If cannabis is smoked, it will cause combustion, which can produce harmful byproducts. The consumer is not exposed to these chemicals when cannabis is vaporized.
As public awareness about the respiratory issues associated with smoking increases, vaping is on the rise. Not only does vaping cannabis help consumers give up smoking, but the devices are more discreet and easy to use.
Someone who’s transitioning from smoking to vaping may be unsure of where to begin. There are different vapes to start with for new users, designed for ease of use. These include pens, pods, and disposable vapes. As more and more consumers switch to vaping, we expect to see user-friendly devices become increasingly popular.
There has never been a better time to quit smoking than right now when COVID-19 is still making waves around the globe. The fate of the cannabis market seemed uncertain at the beginning, but now the trend is clear: vaping cannabis is on the rise.
There’s one main barrier to producing new vape technology: state regulations. With the implementation of PMTA (Premarket Tobacco Application) looming over the tobacco vaping industry, some worry that cannabis vapes will be the next target.
To counteract these issues, companies are moving away from producing cannabis and devices. Instead, they are only producing vapes and relying on partnerships with popular cannabis cultivation companies. Businesses can specialize in creating cannabis tech without being held up by the licenses and regulations associated with cultivation.
By partnering with cannabis producers, vape manufacturers can place their sole focus on improving their products. They don’t need to worry about obtaining licenses if they partner with companies that already have them; instead, they can work on releasing the next innovative vape.
When businesses focus their resources exclusively on advancing the technology of vaporizers, advancements can be made that will transform the vaping industry.
Cannabis vape producers are trying to match the fast pace of the market in 2021. In recent years, there’s been an influx of cannabis consumers interested in vaping, and the pandemic has only accelerated that trend.
We anticipate that as the demand for cannabis vaporizers increases, the technology will develop rapidly to appeal to new and seasoned vapers alike.
Editors Note: This is a guest post.
At Green Market Report, we like to focus on finances and analytics in the cannabis industry. In this article, however, we’re going to shift our focus a little bit – to fake vape cartridges.
Fake vape cartridges are a serious problem. They’re often made to mimic well-known brands, and they can reduce consumer confidence in the industry. Worse still – they can make you very sick, or even kill you if you don’t know how to spot them.
Unfortunately, the packaging for these vape cartridges can be incredibly professional. In this article, we’ll give you some tips on how you can spot the fakes. But first, a piece of advice:
The easiest way to avoid fake vape cartridges is to only purchase from trusted sources. You can get lab test results from legal vendors, as cannabis producers have to provide them. In those test results, you can see exactly how much THC – and other chemicals – are present in the cartridge you’re purchasing.
Of course, this advice is only so good when you’re purchasing your cartridges online, or if you’re living in a state where cannabis is still a black market product. In light of that, here are a few tips for spotting fake products.
Websites like Leafly are incredibly good at listing reliable brands and reviews for those brands. Before you purchase or vape a cartridge, look up the brand and name on Leafly or a similar resource site. There are so many different vaporizer cartridges cataloged on these sites that if yours is legitimate, you’re almost sure to find it.
Once you find the product in question, check reviews. You should also visit the website of the brand you’ve purchased. Then, compare the packaging you find with the packaging on your vape cartridge.
This is not a foolproof method – some of the nefarious actors creating these fake cartridges go out of their way to make their packaging match the real thing. Some of them create very high-quality websites. But doing your research can seriously help reduce your risk.
This technique isn’t flawless, but it can help when you otherwise can’t tell whether or not the cartridge is legitimate.
Check the regulatory requirements for vape cartridge packaging in your area. In California, for example, you’re required to have:
Check state laws or federal laws (in Canada) to see what information is required on the package, then check your package to see if it complies with those regulations. A weed store in Winnipeg is going to have different packaging requirements for its products than a weed store in Denver.
See a cartridge that promises 99.9% THC for $10?
Be very suspicious.
Check online or at your local licensed vendor to see how much cartridges go for, what ingredients they have, and the amount of THC in the cartridge. Compare those values to the values of the cartridge you’ve purchased – if things are drastically different, you probably have a fake cartridge.
If something feels like it’s too good to be true, it probably is. You might not be able to tell by taste, smell, or sight. You might just feel like something is wrong.
That’s okay. Trust that instinct. It’s better you waste a few bucks throwing out a real vape cartridge than it is to take a gamble on a fake one and lose.
We hope this brief article helps you avoid fake vapes. Stay safe out there!
Vaped is looking tohire a full-time remote tester for $42,000 US dollars per year to step in and do the dirty work: and test out vaporizers. It’s not an easy job but someone’s gotta do it.
The ideal candidate will receive their vaporizers 100% free!
So what does the job entail?
Product testing (ex. how long does the battery last)
Instructions of use
How to clean and maintain the vaporizer
Comparisons to other similar units
Your personal feelings about the vaporizer
A video, write up and photography of each vaporizer
What does it pay?
Yes, this is a paid role! The successful applicant will get $42,000 per annum with three weeks vacation.
Benefits did I hear you say?
Who is Vaped?
Established in 2015, Vaped has become one of Canada’s premier vaporizer e-commerce destinations. We believe that vaporizing is the best way to consume dry herb. One big differentiating factor is the time we put into reviewing each vaporizer we carry. Our goal is to ensure that each customer makes an informed decision and is ecstatic about their purchase.
A word from the founder Christian Sculthorp:
“ I need someone who is confident to take over reviews, someone who knows the difference between a Volcano and an Xmax Starry. Who understands what each customer is looking for. So if you are someone who is passionate about vaporizers and has the ability to create well-produced, helpful videos and write-ups on the vaporizers. I want to hear from you. I think it’s an amazing opportunity for somebody, and I look forward to us working together.”
If you want to apply, you can do so https://vaped.com/pages/
Is the idea to test vapes solely for cannabis products, or does it also involve testing nicotine products as well?
Vaporizers are designed for use with any ‘vapable herb’. We expressly don’t recommend nicotine, but as well as marijuana, other ‘dry herbs’, such as potpourri, lavender, and camomile all are appropriate for use with our products.
And the $250/month expense account is for buying the cannabis products, correct?
The $250 a month is a general expense to buy product that can be used in our Vaporizers, which yes, includes marijuana, but as we said above, can be a number of different options depending on the legality of marijuana where you live.
Lastly, how would this work in terms of legality? Should people only apply if they live in states where recreational marijuana is legal? (Or is there a terms & conditions page that has all this info?)
Vaporizers are legal throughout the United States, but testers should only use the expense budget for marijuana if they are in a state in which the smoking of marijuana is legal, or if they have the appropriate medical marijuana licence as dictated by the laws of their state.
Editors Note: This is a guest post.
The booming USA cannabis industry has had to overcome many hurdles to reach the position it is in. With amendments to the Prevent All Cigarette Trafficking (PACT) Act it may have hit yet another setback. In the following article we explain what the PACT act is all about, how the amendments to the act will affect the industry and those who work within it, and what the answer may be going forward. We’ll begin by explaining the act itself and its origins.
The PACT Act was originally passed as law in 2008. However, it has its roots in an act drawn up 60 years earlier in 1949 called the Jenkins Act. The Jenkins Act was aimed at combatting contraband tobacco. It required all carriers who were shipping tobacco or tobacco products across state lines to report the sale of such products to the relevant tax authorities. Tobacco was, naturally, a much-traded product in terms of illicit deals, hence the requirement for the act to impede on tax avoidance.
In 2009 the PACT Act amended the Jenkins Act. Additions to the act included the prevention of the U.S Postal Service (USPS) from delivering cigarettes and tobacco products. This amendment also applied to smokeless tobacco products. The Act also requires sellers of tobacco products to adhere to strict regulations including registering with the ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) and the tax authorities in the state they are shipping to or, in fact, where an advertisement for such products is displayed.
In addition, they must use a carrier who checks the identification of the recipient, and records of sales must be kept for a number of years, among other specific requirements. Originally these regulations did not apply to vaping products. That is about to change, as we will explain.
The recent amendment to the PACT Act – ‘Preventing Online Sales of E-Cigarettes to Children Act’ – brings vape products under the umbrella of the act. Within the wording, the definition of ‘cigarette’ has been amended to include ‘Electronic Nicotine Delivery Systems’ (ENDS). At first glance ENDS appears not to include cannabis products. However, the Act defines ENDS as follows:
“any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described without regard to whether the component, liquid, part, or accessory is sold separately from the device.”
This means that USPS can no longer deliver vape products to consumers. There is some debate ongoing as to whether USPS can deliver business to business – such transactions were exempt from the original PACT Act where strict criteria were met – as the service has yet to publish its intentions.
There has been plenty of reaction within the industry, notably from online retailers and suppliers of vape products who face potential damage from the latest amendments. For example:
“The ban is going to affect cannabis industry also. We are working on a plan with alternative shippers to get our customers their weed vaporizer products, however, the shipping time and shipment fee may increase” the owner of vape4ever.com said. Vape4Ever is an established online supplier of quality vaporizer products at the leading edge of the market.
A worrying addition to the above is that two of the major US carriers – FedEx and United Parcel Service (UPS) – have announced they will no longer transport vaping products in the USA, with FedEx applying its rules from March 1st, 2021, and UPS enforcing the ban from April 5th. T
Whether the current cannabis industry growth projections – which are very healthy indeed – remain in place in the face of the PACT Act remains to be seen. The major concern is for smaller businesses in the vape and cannabis industry who face expensive upgrades to their computer systems as well as revisions to their working practices in the light of the USPS, FedEx and UPS transport bans that are coming into effect shortly.
The ACT requires the USPS to officially clarify the regulation on the carrying of ENDS by April 27th, 2021. At the time of writing there has been no such clarification, and businesses are advised to ensure compliance by that date at the latest. There will be a need for suppliers to find private logistics solutions in order to enact delivery of vape products, and many are currently investigating and organizing such solutions.
The PACT Act is a blow to a burgeoning industry that has given rise to many small outfits and provides many jobs, and it is hoped that the smaller players in the market can find a cost-effective solution to comply and enable delivery to continue.
Editors Note: This is a guest post.
We’ve all witnessed the epic expansion of the vaping market in recent years, with people of all ages joining in on the trend. It seems that no matter where you turn, there’s always that one a guy or a girl with a vape pod in any group of friends.
Well, the increased popularity has caused quite a bit of a stir in the vaping industry, and there are a number of changes on the horizon. If you just want to buy vape juice online, get a colorful pod, and join the community, it’s a perfect time to do so.
Here are just some of the biggest trends that all you vapers, and soon-to-be vapers, can look forward to.
Yeah, while our cell-phones have been getting bigger and bigger over the last decade, the vaping world has been hit by a shrink ray. Vape pens have gotten a lot slimmer, with some quite elegant models seen in the hands of Instagram fashionistas.
Going with a smaller size doesn’t mean sacrificing all the power, though, as these compact devices are real workhorses. They’re easy to carry around, they have a perfect look for those who want to be a bit understated and classy, and they work just as well as their chunkier counterparts.
Some people are even buying these slimmer models as a backup for their larger vape pods, something that they can just grab on a short trip to the store or when taking the dog for a walk.
These tiny vape pens are also great summer accessories for the ladies, as there’s often not enough pocket space or handbag real estate for a large pod.
In the past couple of years, the governments of several states were ready to crack down on vaping equipment, especially the more eclectic flavor mixes, fearing that they would get kids to start taking up the habit. However, this was shown to be a murky issue at best, as about 30% of high-school students reported that they tried two or more tobacco products.
Be that as it may, the mere existence of different flavors didn’t make traditional cigarettes any more enticing than they already were, and having fun e-liquid flavors is not the issue here either. Luckily, with a lot of states backing away from draconic measures, we now have access to an amazing variety of blends.
That’s great news for anyone experiencing vaper’s tongue, where the person gets so used to a certain flavor that the vape juice starts feeling bland and tasteless. The best cure is to switch things up, using different flavors, and there’s a ton of options now.
As of 2018, 87% of survey respondents said that they regularly used WiFi around the home. I’m willing to bet that the number is well into the 90% range by now, and it’s easy to see why. It’s incredibly convenient and allows for some cool IOT gadgets around the house as well.
It looks like the simple old vape pods and desktop vaporizers are offering WiFi connectivity as well. Some smart vaping devices now have apps that allow you to modify anything from nicotine content to the power output using your phone. The app can also keep track of your preferences and give you insightful analytics on your nicotine consumption.
These cool little gadgets will be the perfect fit for both tech geeks who love the extra functionality and those who’ve been trying to quit smoking but never really kept track of how much they were smoking every day. Be on the lookout for new models, as this smart vaping trend has taken off big time in 2020.
As we mentioned earlier, there have been raising concerns about the health implications of vaping, so the manufacturers have really tightened up their quality control. Another reason why we are now seeing higher quality products at even the more reasonable price points is all the competition on the vaping market.
With the market expanding, new brands are popping up, and everyone is doing their best to please the consumers and build a solid reputation.
The vaping industry is experiencing massive growth in this era of lockdowns and isolation, and the explosion in demand has caused the market to adapt. What this means for the users is more options in terms of e-liquid flavors, high-quality devices at lower prices, smart technology, and incredibly compact and elegant vape pens.
It’s a great time to go away from cigarettes and go with fun flavors with much less nicotine, combined with a classy gadget that’s sure to turn a few heads.
SLANG Worldwide Inc. (CNSX: SLNG) reported its 2019 third-quarter revenue in Canadian dollars of $9.3 million which rose 29% over the $7.2 million of revenue produced in the second quarter of 2019. It easily overshadowed last year’s net revenue of $1.6 million for the same time period. The company said that the increase reflected ongoing business strength in core markets and a favorable shift in product mix, including accelerating sales of premium products in the SLANG portfolio.
Slang also delivered a net income of $0.4 million in third-quarter versus net income of $17.5 million in the second quarter. The company reported a net loss of $16 million in 2018 for the same time period. The company said that the net income gain was driven by a favorable $106.6 million fair value adjustment to derivative liabilities and the options to acquire NS Holdings Inc. and ACG, offset by a non-cash impairment charge relating to a write-down of goodwill for acquisitions completed in January 2019 and by increased operating expenses in the quarter.
“In Q3 2019, we continued to see strong organic revenue growth. Across our portfolio, we saw favourable developments, including a shift in consumer spending toward the premium end of our portfolio, particularly Craft Reserve and Firefly. We continue to diversify our portfolio of products to increase total cannabis market share across both historically strong and blue-sky product segments, for SLANG,” said SLANG CEO Peter Miller.
Slang also announced a non-brokered private placement financing for $15 million. Investors include existing institutional shareholders of the company and additional investment by investor Bruce Linton. Slang said it intends to use the proceeds of the private placement to support strategic growth opportunities and for general corporate purposes.
Miller added, “We are excited to accept additional financing. This significant capital infusion from existing, long-term shareholders further strengthens our balance sheet. The company’s ongoing efforts toward increased acquisition-centric efficiencies, our goal of positive operating cash flow by mid-2020, today’s enhanced cash position, and our powerful, multi-state platform allow us to be opportunistic around growth opportunities in this dynamic environment. We see a huge opportunity in flower, ultra-premium concentrates, and other previously untapped product segments for SLANG.”
Vape Sales Continue
Despite the vape crisis, which has put a dentin most vape product sales, Slang said that it saw an increase in quarterly revenue driven by higher sales of premium products within the portfolio. “Despite sociopolitical headwinds, our leading Craft Reserve and Reserve brands in the O.penVAPE line maintained a #1 sales position across key markets, including Colorado, New Mexico, and Vermont.
The company statement also noted that within most key markets, the Slang SKUs are among the highest-selling concentrate products on shelves, including in Colorado where 6 of the highest-selling vape SKUs are either Craft Reserve or Reserve products. “As part of its iterative product strategy, SLANG soft-launched the FireFly Mini product in Colorado during Q3 2019. After positive traction in the market, the company now anticipates a full state-wide launch in Q4 2019, followed by a product roll-out in California, Oregon, and Washington in the first half of 2020. Additionally, SLANG anticipates offering further additions to its product mix, including live resin products in 2020.”
The Centers for Disease Control updated its website today. The organization said that recent CDC laboratory testing of bronchoalveolar lavage (BAL) fluid samples from 29 patients with EVALI submitted to CDC from 10 states found vitamin E acetate in all of the BAL fluid samples. Vitamin E acetate is used as an additive in the production of e-cigarette, or vaping, products. This is the first time that we have detected a potential chemical of concern in biologic samples from patients with these lung injuries.
As of November 5, 2,051 cases of e-cigarette, or vaping, product use associated lung injury have been reported to CDC from 49 states (all except Alaska), the District of Columbia, and 1 U.S. territory. There have been 39 deaths in 24 states and the District of Columbia.
CDC continues to recommend that people should not use e-cigarette, or vaping, products that contain THC, particularly from informal sources like friends, or family, or in-person or online dealers. We will continue to provide updates as more data become available.
The website posted these new findings:
New Laboratory Findings:
The CDC admitted that no one compound or ingredient has emerged as the cause of these illnesses to date, and it may be that there is more than one cause of this outbreak. Many different substances and product sources are still under investigation.
Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.
Body and Mind Reports Slumping Sales as New Dispensaries Come Online https://t.co/h7TQOZL5qF
Planet 13’s Financial Numbers Down Across the Board for 2022, Losses Jump 152% https://t.co/cFT1s22ioq
Atai Life Sciences Losses Shrunk in 2022 Amid Restructuring Bid https://t.co/jhSfCBdJ9N
Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.