In the context of the continuous development of the e-cigarette industry, a series of dynamics in the US market are profoundly influencing the industry's trend, covering several key areas such as policy and regulatory adjustments, corporate strategic transformations, and exploration of cutting-edge technologies.
Altria Group, Inc.: Advancing Transformation and E-cigarette Market Expansion Simultaneously
The US tobacco manufacturer, Altria Group, Inc., has recently launched the "Optimize and Accelerate" plan. It utilizes artificial intelligence and automation technologies to centralize, simplify, and standardize organizational processes, thus accelerating corporate transformation. It is expected to be basically completed within 12 - 18 months, and will save at least $600 million in costs over the next five years.
In the market aspect, as the smoking rate in the US declines, Altria Group, Inc. cigarette shipments have decreased. However, relying on its pricing power, the decline in revenue is relatively small. At the same time, the sales volume of new tobacco products is increasing, and the number of adult users in the US e-cigarette market is growing. Njoy, a company under Altria Group, Inc., is the first and only manufacturer in the US to obtain marketing authorization for menthol e-cigarette products. Njoy has improved consumer repurchase rates, customer loyalty, and market share through measures such as product improvement, sales network enhancement, and strengthened consumer connections. After promotional activities, the sales volume increased significantly, and some growth remained even after the discounts were cancelled.
However, the US e-cigarette market faces numerous challenges. The group's CEO, Billy Gifford, pointed out that "the current situation where illegal e-cigarettes account for 60% of the market share seriously hinders development, and the chaos of 12.4 million consumers using unauthorized products urgently needs to be rectified."
IKE Tech: Blockchain Technology Solves the Age Verification Problem
Recently, IKE Tech LLC ("IKE Tech"), a joint venture of Ispire Technology Inc. (NASDAQ: ISPR) and a leading innovative enterprise in the fields of the Internet of Things (IoT), identity verification (IDV), and tokenization technology, has announced the results of a multi - center human factors verification study that evaluated its low - power Bluetooth (BLE) system. The IKE system is the first blockchain - based interoperable biometric platform designed to control access to electronic nicotine delivery systems (ENDS).
This study evaluated the use of BLE - enabled chips and biometric authentication to control device access in real - time, setting a new standard for the usability, security, and effectiveness of preventing minors from accessing ENDS.
The results show that:
100% of users (n = 101) successfully completed age verification.
0% of underage users were able to activate the device.
100% of devices would be deactivated after a period of inactivity or loss of the Bluetooth signal.
91% of users found the application "extremely easy" or "very easy" to use.
Only 1% of task attempts resulted in an error.
Tennessee's "E-cigarette Directory" Bill: 10% Wholesale Tax and "Enemy Country" E-liquid Ban
On April 22, the Tennessee State Legislature submitted Bill SB 763 to Governor Bill Lee for signature. The bill has passed in both the state House of Representatives and the Senate and is likely to become law.
The final bill includes the following provisions:
From July 1, 2025, a 10% wholesale tax will be imposed on all vaping products.
A list of vaping products legally sold in Tennessee will be established, and the State Tax Bureau will publish the list to the public on January 1, 2026.
Manufacturers must prove by August 1, 2025, that the products submitted for inclusion in the list meet national requirements and pay an annual fee of $25 for each product submitted for inclusion in the list. Otherwise, they will be subject to perjury penalties.
Products must have obtained FDA marketing authorization; or still be under FDA review; or have received a Marketing Denial Order (MDO) that has been suspended by a federal court order or the FDA, or has been revoked by the FDA or the court.
Manufacturers must prove that "the consumable substances of vaping products are processed or mixed in factories registered with the US FDA and do not come from enemy countries."
Products not included in the registration list can be sold by retailers until January 1, 2027.
Retailers are required to check the identification of any customer who appears to be under 50 years old.
Some advertising restrictions will be implemented, and the penalties for retailers selling goods to underage customers will be increased.
The final version of the bill has less impact on local vape shops compared to the original proposal. The main affected products are disposable e - cigarettes sold in convenience stores. As long as the e - liquid products sold by vape shops meet the requirements of the PMTA list and are not further restricted by the "enemy country" regulations in the future, they are expected to operate normally.
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