NJOY to Voluntarily Halt Sales of Fruit-Flavored Disposable Vapes
NJOY says it will voluntarily stop selling fruit-flavored disposable vapes as new FDA restrictions push many sweet and fruit-flavored vaping products out of the U.S. market.
NJOY Holdings Inc., the producer of the best-selling disposable e-cigarette NJOY Daily, has decided to voluntarily stop selling its fruit-flavored products due to concerns from lawmakers and anti-vaping advocates about young people potentially switching to these disposable e-cigarettes.
"The surge in Vuse Alto's growth, combined with the increasing scarcity of menthol pods in the Juul retail market, has put immense pressure on Juul's market share in the pod vaping market in recent months."<\/font><\/font>Callum Elliot, Analyst, Bernstein Research<\/font><\/span>
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The FDA's new e-cigarette policy announced on January 2 does not apply to fully independent disposable products. Wells Fargo noted that disposable e-cigarettes account for about 3% of e-cigarette sales in stores tracked by Nielsen. Unlike the pod-based vaporizers from market leader Juul Labs Inc., these devices cannot be refilled or recharged.
NJOY Daily disposable e-cigarettes are slim and cylindrical, resembling the shape of a cigarette. They come in tropical flavors and flavors like apple melon. The product is priced at $5.99 each on the company's website and is sold at gas stations and convenience stores, accounting for about 13% of the company's sales. NJOY is known for its pod-based e-cigarette NJOY Ace, whose popular watermelon and blueberry flavors will be banned under the FDA's new policy. Fruit flavors account for about 70% of the company's sales. Insiders say that once the FDA's restrictions take effect next week, the company will stop shipping all products except those flavored with tobacco or menthol. E-cigarette manufacturers must submit any products they wish to sell in the U.S. for review by May, and they can also apply to reintroduce fruit-flavored products. Insiders say NJOY plans to submit applications for its fruit-flavored Ace and Daily disposable products. E-cigarette-related illnesses are on the rise and appear to be linked to the black market for THC e-cigarettes.
Due to anticipated FDA flavor restrictions and criticism for contributing to the surge in underage vaping, market leader Juul voluntarily stopped selling its sweet and fruit-flavored replaceable pods last year. Juul does not sell disposable e-cigarettes. Other disposable e-cigarette manufacturers include Fontem Ventures, a subsidiary of Imperial Brands PLC, whose cigarette-shaped Blu Disposable is priced at $7.99 online and comes in flavors like vanilla, polar mint, and cherry. Fontem states that it only sells products to adult smokers and uses online age verification tools to prevent sales to minors. A spokesperson said: "These products are not used by young people, which is why the FDA exempted them." Other disposable brands, such as Stig and Puff Bar, resemble Juul's USB shape.
Some industry insiders say that young people can easily switch from Juul to one of these brands. The FDA earlier this month stated that it would ban the sale of fruit and menthol flavors in pod-based e-cigarettes popular among teenagers but would not apply the restrictions to disposable e-cigarettes or open systems commonly found in vape shops. This action is seen as a compromise between Trump administration officials wanting to address the rise in youth vaping and those concerned about the impact on small businesses and the potential political consequences for President Trump. Some lawmakers and anti-tobacco organizations criticized this compromise, stating that the government should stick to its earlier plan to remove all products like tobacco from the market.
In a letter to the FDA, Senator Tom Udall questioned why the agency did not restrict flavors in disposable e-cigarettes, adding that they come in various flavors appealing to young people. The agency stated it would respond directly to the senator. Agency officials indicated they would closely monitor manufacturers and retailers to ensure the new regulations are sufficient to combat youth e-cigarette use. They committed to imposing fines on companies that target minors or use marketing tactics that may attract young people or fail to take appropriate measures to restrict access to minors. The FDA also has the authority to terminate the sale of all e-cigarettes since it began regulating the e-cigarette industry in August 2016.
After Juul's sales began to rise in 2017, several disposable brands resembling Juul appeared. The FDA has sent letters to three disposable e-cigarette manufacturers, including VGOD Inc., which makes Stig, seeking evidence that they were on the market before 2016. An FDA spokesperson said he could not comment on whether the two companies responded. VGOD did not immediately respond to a request for comment.



