Vape Gold Rush in Danger
Vapes offer fabulous revenue opportunities but must be properly regulated

Vape Gold Rush in Danger

In 1896 gold was discovered in the Klondike region of Yukon in north-western Canada. This triggered a stampede of prospectors leading to a population explosion resulting in boom towns such as Dawson City where the numbers grew from 500 to over 30,000 in two years. This became known as the “gold rush”.?Some Klondikers attained great wealth but the vast majority suffered illness, privation and heartbreak. They all left a trail of devastation in their pursuit of wealth including the forced repatriation of thousands of native Americans.

The vape industry is surging, offering smokers a way out of their addiction. Suppliers, traders, wholesalers and retailers are reaping fantastic new revenue streams. Until recently the majority of vapes were sold primarily online direct to consumers or through specialist vape stores. Pipes, coils, batteries, liquids etc. added a certain complexity, charm and character to the experience. Vape stores came into their own, assisting consumers to purchase through specialist expertise and advice. Then came disposable vapes opening up the opportunity to virtually any type of outlet from hairdressers to mobile phone shops but most notably convenience stores who are enjoying substantial new revenues and profits. This has seriously ignited the category resulting in a Klondike-style twenty-first century gold rush. And just like the gold rush, problems are emerging. Let’s keep in mind that vaping is the ingestion of chemically infused water droplets into the respiratory tracts. Strict quality control, safety measures, product hygiene and regulation are absolutely essential.

Volumes of illegal, non-compliant and potentially dangerous disposable vapes are being seized from retailers in ever increasing quantities by trading standards officers across the country. Add to this the leading disposable brands Elf Bar and Lost Mary being cited and admitting to overfilling their disposable vapes with up to 3ml of nicotine-containing e-liquid rather than 2ml as specified by UK Tobacco and Related Product Regulations 2016 (TRPR). Then the recent exposure by Better Retailing that British and American Tobacco (BAT) have lobbied wholesalers stating that they have extensively tested many competitor products over a six-month period and found them to be non-compliant, overfilled and asking them to withdraw said goods from sale. Although this is being challenged by other operators and competitors in the sector it is not a good look.

The Sunday Times Magazine article (12th March 2023) about under-age vaping highlighted another serious issue featuring the increasing use of disposable vapes by school children – many admitting to being “addicted”. These children are not previous smokers transitioning across to vapes. They are first-time vape users attracted by the sweet-style tastes and branding. Where do these under-age kids buy their stock? Then there is the waste associated with used disposable vapes. Many are ending up in landfill. A recent article in the i-newspaper stated that a used disposable vape unit contains more lithium than a typical saloon car. Just to add some balance on this one, disposal and collection schemes are now getting underway albeit slowly and after the event.

It is not often that a totally new category emerges with the earning power of vapes. Overall the industry takes its responsibilities seriously and I know from personal experience how much rigour goes into safety and quality checking. Now vaping is taking on Klondike characteristics and there are serious issues developing that threaten future success. The industry needs to up its game on self-regulation and the government must become more effective around implementing the existing regulations. Retail outlets must also play their part by purchasing from bona fide sources and by not selling vapes to under-age children. Failure to act across the industry will undoubtedly put the skids under the vape category.?

Elio Zhao

Business development manager

1 年

You're absolutely right, I think so too!Sir

Nick Rolfe

Senior Key Account Representative with Acosta Europe on the British American Tobacco account

1 年

Excellent analysis of the category, but I’d add that retailer responsibility has played a part. 2 major grocers have merchandised disposable vapes on open display on their shop floor, both acknowledging instant & significant losses to theft. Many have reported visits from local schools asking them to remove this easy option, as although they know the kids are in the wrong for doing this, they then pay the price when children are found selling them in the playground to schoolmates. Additionally, police are unwilling to visit stores as they’re very open in saying that stores are almost bringing this upon themselves. I’ve worked in the vape category since it’s inception in big name grocery & I can say categorically that this issue has never been as pressing as it has become since the introduction of disposables.

Omar Ansari

Head Of Trading at Forrest Fresh Foods Ltd

1 年

very thorough and thought provoking as always David Gilroy . Hope all is well.

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