SKE Crystal online marketing campaign 'stung' by BBC, which says user verification was insufficient

According to reports, after the BBC contacted SKE, some SKE-related social media accounts have been closed (including YouTube and TikTok accounts) and are currently awaiting review.

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[Two Supremes News] According to the BBC on August 26, SKE Crystal Bar held an online giveaway event on the instant messaging platform Discord, which has a large number of underage users, and promoted it through Instagram.

The report mentioned that according to the latest data from NielsenIQ, SKE is currently the second-largest e-cigarette seller in the UK, with sales exceeding 30 million units last year. It is important to note that Nielsen's data does not include independent retailers and e-cigarette stores. The actual sales of SKE are believed to exceed 100 million.

A BBC reporter participated in the event. The reporter stated that they were asked to declare that they were over 18 years old, but no further age verification was required. Subsequently, SKE mailed them two e-cigarettes.

Screenshot from Discord showing BBC reporters winning the contest | Source: BBC

The report also stated that after the BBC contacted SKE, some SKE-related social media accounts were closed (including YouTube and TikTok accounts) and are currently awaiting review.

SKE's European media director, Serge Davies, told the BBC: "We plan to restart these accounts with a local social media company that understands local laws and customs better."

Serge Davies of SKE stated that the company is considering restarting some social media accounts

Here is the full translation of the report:

Title: E-cigarette giant "Crystal Bar" closes TikTok account after sending giveaway without age verification

The second-largest e-cigarette company in the UK closed its social media accounts after sending e-cigarettes to reporters through an online giveaway without age verification.

The SKE company's Crystal Bar disposable e-cigarettes have seen rapid sales growth but have been criticized for attracting children.

In an exclusive interview, SKE's marketing director Serge Davies stated that the closure of these accounts was for "review."

SKE also apologized for not joining the government recycling program.

Crystal Bar disposable e-cigarettes are ubiquitous in supermarkets, newsstands, and e-cigarette stores in the UK. Designed to release hundreds of puffs of nicotine vapor before being discarded, disposable e-cigarettes have seen remarkable growth in recent years.

According to new data from NielsenIQ, the Chinese SKE company that manufactures Crystal Bar is now the second-largest e-cigarette seller in the UK, with over 30 million units sold in the past year. Nielsen's data does not include independent retailers and e-cigarette stores - SKE's actual sales are believed to exceed 100 million.

Free sample giveaways have been a key part of its rise - last month, the company held an online giveaway event on the Discord instant messaging platform and promoted it through its Instagram channel. Discord was originally designed for gamers and has a large number of users under 18.

BBC reporters participated in the contest. They were asked to declare they were over 18, but there were no further verification requirements. They were then mailed two e-cigarettes.

It is illegal to sell e-cigarettes to individuals under 18.

After the BBC contacted SKE, some social media accounts were closed for "review," including their YouTube and TikTok channels.

SKE's European media director Serge Davies told the BBC: "We plan to restart these accounts with a local social media company that understands local laws and customs better."

SKE's two biggest competitors, China's ELFBAR and the UK-listed BAT company (which produces Vuse e-cigarettes), have stated that they do not post content on TikTok. This is partly due to the high risk of appearing on children's phones.

However, SKE is committed to the platform. "We will seek to launch an exciting new strategy on TikTok," Mr. Davies said. He also promised to continue e-cigarette giveaway activities. "This seems to have generated a lot of interest and passion for the brand," he said.

When asked if he could defend a specific video from SKE's TikTok account that showed the opening of a Crystal Bar with a voice saying, "I wish I could be as cool as the kids," Mr. Davies said: "None of our policies are aimed at the children's market. So what we are trying to do on our social media accounts is to create some buzz."

Health Committee Chairman Steve Brine stated: "It is extremely concerning to hear that e-cigarettes may easily fall into the hands of children due to the lack of proper checks.

"Responsible manufacturers should not use giveaway programs that could lead to children starting to smoke; they need protection from potential harmful effects."

Recycling

Disposable e-cigarettes contain electronic components, including small batteries, which are difficult to recycle and costly. Discarded e-cigarettes are a common sight, and local governments are calling for a ban on them.

Like all electronic product manufacturers, e-cigarette companies are legally obligated to register for recycling programs, under which manufacturers must contribute to recycling costs. Until this month, SKE had not registered for these programs or paid an estimated £100,000 in fees.

Mr. Davies stated that the company apologizes for this, attributing it to "communication issues." "We are glad you highlighted this, and we have now registered for the relevant programs," he said.

SKE established a company in the UK for the first time this month, with documents from Companies House showing that the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) holds "significant control." SASAC represents the Chinese state in investment management.

SKE is owned by Shenzhen Yinghe Technology Co., Ltd., whose largest shareholder is Shanghai Electric, which is over 50% owned by entities related to the Chinese state, according to its annual report.

In a report to shareholders last year, Yinghe stated that due to the Chinese government's crackdown, its e-cigarette sales targets were not met, and it is focusing on international expansion to make up the gap. The UK is now its largest market in Europe.

References: [1] Crystal Bar vape giant deletes TikTok after giveaway with no age verification