Smokescreen: Some vape Firms Pivot After FDA Crackdown
Some e-cigarette companies targeted by U.S. authorities have altered their business model or changed their corporate structure, including by transferring operations to offshore firms. The FDA struggles to contain sales of unauthorised vapes despite sales bans, and big tobacco firms claim illicit vapes impact their U.S. market share. Heaven Gifts, a Chinese vape giant, has transferred the ongoing U.S. operations of its brand Lost Mary to a British Virgin Islands firm.
- This strategic move by e-cigarette companies highlights the challenges faced by regulators in enforcing product standards, particularly when it comes to complex global supply chains and the grey areas between regulation.
- Will increased scrutiny on vaping products from regulatory bodies lead to more innovation and safer alternatives in the industry?