Week of June 9 Regulatory Intelligence Recap

Trade Press and Regulatory Summary

• Tobacco Outlook: Alternatives & Regulations - CStoreDecisions

Nationally, cigarette sales dropped 4.3% in the 12 weeks ending April 20, reaching $11 billion, according to market research firm Circana. In the 52 weeks ending April 20, cigarettes were down 4.2% in dollars and 9.1% in units.

Though declining year over year, the category is still seeing $51 billion in sales for the last year, with the next-highest segment, smokeless, only reaching $12 billion.

“I would think consumer behavior in the tobacco space will continue to shift away from traditional products and toward more modern, perceived lower-risk alternatives,” said Stevenson. “I think we will continue to see the trade down within cigarettes due to prices. Nicotine pouches will continue to gain momentum, with new players coming to the market rapidly. I foresee a ‘space’ issue arising in the near future for these new brands/products.”

“At both the federal and state levels, the regulatory landscape for tobacco and nicotine products has been plagued by a lack of clarity, transparency and enforcement. FDA mismanagement over the past several years has created a confusing, uneven playing field where responsible retailers and manufacturers who follow the rules are punished, while bad actors continue to flood the market with illegal products,” Ritchie said.

• There’s one vice RFK Jr. isn’t talking about - Politico

Robert F. Kennedy Jr. has made it his mission to remind Americans that they need to get off the couch and lay off the junk food. But there’s one vice he’s not talking about: smoking.

Kennedy’s apparent lack of interest in combating smoking — the word “tobacco” appears in the MAHA report only within the context of his concerns about food marketing while “smoking” and “cigarettes” are never mentioned — also suggests this Trump administration won’t be like the first.

Luis Pinto, a spokesperson for Reynolds American, the maker of Lucky Strike, Camel and Newport cigarettes, said the company has not yet met with Trump’s FDA commissioner, Marty Makary.

Pinto said the company is opposed to a menthol cigarette ban because it believes there are “more effective and sustainable ways to help adult smokers transition away from combustible cigarettes.”

“Rather than setting a nicotine standard, the focus should be on expanding access to a diverse and innovative portfolio of potentially reduced-risk products,” Pinto said. “Tobacco harm reduction, not prohibition, is the most effective path forward in reducing the health impacts of smoking.”

On Capitol Hill, Kennedy has rarely discussed tobacco despite his focus on preventing chronic disease, disappointing lawmakers like Durbin, the second ranking Democrat in the Senate.

• Makary Considers More Cuts at FDA Amid Continued Delays - Biospace

In an email sent last Wednesday to FDA employees, Makary suggested that the agency will put human resources, acquisitions, travel, disclosures, communications, facilities, budget and IT operations under a “unified approach.” The goal, according to the email, is to “eliminate duplicative services, increase cross-communications across the FDA and deliver more consistent, efficient and responsive support” for its review teams.

It remains unclear if this move will mean additional layoffs and, if so, how many employees will be affected.

• Circulating Notices Suggest Geek Bar Manufacturer QISI Adjusted Production Amid U.S. Order Decline - 2Firsts

Two images circulating on social media appear to show internal notices from QISI, a major Chinese e-cigarette manufacturer and the producer of Geek Bar, the top-selling disposable vape brand in the United States. The documents suggest that the company implemented temporary production and staffing adjustments at its Zhuhai facility amid declining U.S. order volume.

The June notice adopts a markedly different tone, stating that since May, the Zhuhai site’s U.S. orders have been “significantly impacted” due to “ongoing China-U.S. trade tensions.” As a result, QISI reportedly implemented “capacity adjustment leave” for certain production lines and postponed shifts to late June. The document also includes calls for staff to “stand together to overcome difficulties.”