2017 NOVEMNOVEMBER BER 2017
BEHIND THE SCENES WITH VTA'S PLAN TO SAVE VAPING WHY TPE IS THE FIRST M UST ATTEND SHOW OF 2018 WHAT HAPPENED TO JOHNSON'S CREEK?
Ton y Abbou d, Execu t ive Dir ect or VTA
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CALL TO ACTION!
SAN ANTONIO LOOKS TO PASS LEGISLATION TO RAISE TOBACCO AGE TO 21!
San Antonio is preparing to make the same mistake that 13 other cities have already made by crafting legislation to raise the age to use tobacco to 21 years of age. Citing the usual need to prevent children from starting to smoke, the city recently published a survey called the Tobacco 21 Survey that took place between September 15th and October 23rd in 2017. The results of the survey show that 77% of the population believe that the tobacco age should be raised to 21. ?Ninety-five percent of people who currently smoke started before they were 21,? said Metro Health Director Dr Colleen Bridger. ?If we can stop that, we can decrease smokers and users of other tobacco products significantly, which is going to improve the health of the community.? The bill is expected to be voted on this Decem ber 7th. Please reach out to your state and local representatives and advocates to help stop this ordinance from passing.
THE LONG RISE AND SUDDEN FALL OF JOHNSON CREEK SMOKE JUICE.
On October 9th, Johnson Creek Chief Operating Officer Heidi Braun took to twitter to announce that she was ?Very sad to announce we?re going out of business. Effective tomorrow.? The news was shocking, but even more shocking was the abruptness of the news. Effective tomorrow. The website immediately went into clearance mode and within a few hours was ?turned off.? Founded in 2008, by founder Christian Berkey, Johnson Creek was truly one of the early pioneers in the industry. Berkey famously started out making e-liquid in his coffee maker before perfecting his recipe and eventually supplying all the e-liquid used in the Blu cig-a-like device. At its peek, Johnson Creek employed over 60 people and became synonymous with their hometown of Hartland. Johnson Creek was also a main supporter of EVCA, and the town of Hartland was the test case for that groups legal strategy against the FDA. While many have assumed that some form of restructuring was inevitable, to date there have been no further updates or legal paperwork filed to give a clue to the companies future. After the fall of NJoy earlier in 2017, it would be unfortunate if the final word from Johnson Creek were these words from Braun: ?I?m so very sorry that we?ve failed you."
Sen . Ron Joh n son (R-WI) Keyn ot in g t h e VTA Con f er en ce in Wash in gt on , D.C.
THE VTA HAS TAKEN THE LEAD How What Was Once Considered An Upstart Organization Has Become An Advocacy Leader On The Federal And State Level. By Patr ick Riffe (Nacht Noir ) The Vapor Technology Association formed themselves seeming out of whole cloth in January of 2015 to some controversy and a little bit of consternation by some of the people in the vaping community.
There were some who looked at this new group and asked, ?Who do these guys think they are??The VTA was looked at as outsiders coming in to take over the advocacy efforts of established groups and their image was not what many inside of the industry wanted .Their board wore suits and ties and did not look like vapers. Some of them had worked for tobacco companies or in government affairs, but all had a
common interest in advocating for the vapor industry and their vapor businesses. Tony Abboud helped create VTA in 2015 when he and the Board of Directors set out their mission to create an organization that had three pillars, federal lobbying, growing strong state vapor trade organizations, and public affairs. Prior to their launch in January
2016, VTA?s key players had already been on the ground working on vapor issues in DC for years, before they did their soft launch in October 2015 with an organizational meeting attended by a number of companies. The meeting had FDA consultants speaking and gave an overview of what their organization would be. With that base of companies, VTA established their initial board of directors and hired DC lobbying firm West Front Strategies to help guide their efforts. West Front Strategies had been representing vapor on a federal level for years and was familiar with the industry as it had previously worked for SFATA. The hiring of West Front gave the VTA a jump on representation in DC due to their lobbyists already having the necessary connections and because they knew the lay of the land with respect to which politicians would be sympathetic to the cause. The bottom line is that the VTA?s Board were not the outsiders many thought they were. Some of them had held positions in SFATA in the
past, until a shift in strategy forced some of the biggest players in SFATA to leave and start VTA. I recently sat down with Tony Abboud, Executive Director of the VTA to discuss the formation of VTA, their efforts and the plan for the future. TVA: Tony, there were some people in the vaping community that were against the VTA from the start. There were some that felt that due to the fact that certain members of board had worked for tobacco companies in the past, the fact that some might not vape, and that the VTA just doesn?t look like the stereotypical vaper, that your group would not represent them properly. On top of that, there are many that believe that the VTA?s only goal is to promote closed systems .How would you respond to that? Ton y Abbou d: I t h in k at f ir st w e w er e m et w it h som e su spicion becau se people did n ot k n ow w h o w e w er e, even t h ou gh t h ey w er e f am iliar w it h t h e com pan ies t h at f ou n ded u s. Ir onically, t h e sam e com pan ies t h at f ou n ded SFATA. Bu t , I encou r age people t o r ead ever yt h in g w e h ave ever w r it t en , ever yt h in g w e h ave ever pr om ot ed, ever yt h in g t h at w e h ave ever said in pu blic, an d you w ill see t h at it ?s ver y con sist en t w it h ou r cor e m essage of def en din g all segm en t s of t h e in du st r y, def en din g open syst em pr odu ct s an d bot h lar ge m an u f act u r er s an d sm all vape sh ops. I t h in k becau se of t h at in it ial su spicion people w er e look in g at w ays t o dr aw lin es bet w een u s an d ot h er s.I get t h at . We got u p an d r u n n in g an d w e slogged t h r ou gh a lot of t h at n egat ivit y in 2016, bu t t h is year w e r eally h ave been h it t in g t h e ball ou t of t h e par k in t er m s of ou r adm inist r at ion st r at egy in DC, as w ell as t h e r em ar k able t h in gs w e h ave been
doin g at t h e st at e level cou pled w it h ou r m essagin g cam paign .? ?Th e vapor indu st r y is a ver y diver se indu st r y, t h er e is n o dou bt abou t it . We h ave in cr edibly pr of ession al people. M an y f olk s com e at t h is f r om a var iet y of back gr ou n ds in ot h er bu sin esses t h at w er e n ot h eavily r egulat ed indu st r ies, an d t h at h as r equ ir ed a sign if ican t adju st m en t on t h eir par t . So, t h e w ay som e appr oach pr of ession al advocacy is t h e biggest f u n dam en t al dif f er en ce. Su r pr isin gly, som e people w ill act ually ju dge you by w h et h er you act u ally ar e h oldin g a device in you r h an d. Th ey w ill qu est ion you r m ot ives.It ?s k in d of odd if you t h in k abou t it . Do you ask you r law yer if sh e vapes? Do you ask you r accou n t an t if h e vapes? No. You w an t t h e best pr of ession al f or t h e job. Th at ?s w h at w e of f er . For m e, I h ad t o qu it sm ok in g in t h e 1990s, lon g bef or e ecigs w er e inven t ed. I k n ow h ow h ar d it is t o qu it , w h ich is on e r eason I w an t t o m ake su r e t h at sm ok er s t oday h ave access t o vapor pr odu ct s t o m ake t h e t r an sit ion . So, if an yon e says t h at w e ar e on ly abou t closed syst em s, I k n ow t h at t h ey h ave n ot r eally looked at u s. We h ave t h e biggest f lavor com pan ies an d t h e lar gest dist r ibut or s in t h e w or ld t h at ar e par t of ou r or gan izat ion . We r epr esen t h u ndr eds u pon h u n dr eds of vape sh ops w h o ar e sellin g open syst em s. An d, w e h ave a Boar d of Dir ect or s t h at is m ade u p of com pan ies t h at ar e vest ed in t h e diver se vapor space. Ever yt h in g w e h ave said, ever yt h in g w e h ave don e f r om a policy per spect ive f r om t h e ver y ver y begin n in g h as been abou t m ain t ain in g open syst em s an d def en din g f lavor s. I?ve of t en h ad t o
r em in d people abou t t h at . TVA:I think that social media is our biggest platform, but also one of our biggest weaknesses. The vaping industry relies heavily on social media for marketing, and the advocates use it as their primary method of communication to get the word out. But, it is also the place where most of the drama and confusion starts. VTA has weathered quite a lot of that drama in the past and still refused to get down in the mud to feed the trolls. You were the target of a lot of that, would you speak about the VTA?s responses or lack of responses to the social media attacks? Ton y Abbou d: It ?s a ver y in t er est in g pr oblem t h at you iden t if ied becau se so m u ch of ou r com m u n it y com m un icat es on Facebook . Wh en w e w er e get t in g at t acked, t h e dir ect ion t h at ou r t eam gave u s w as, ?Ju st pu t ou t m or e posit ive st u f f . Don?t t ake t h e post s dow n . Don?t r espon d t o it .Ju st keep pu shin g t h e posit ive m essage.? An d t h at is w h at w e?ve t r ied t o do. Ver y sim ply, w e don?t at t ack . Look , ou r in du st r y h as t oo m an y en em ies alr eady.Ou r m ission is t o bu ild it u p. TVA:Don?t feed the trolls. Ton y Abbou d: Exact ly.An d t h er e ar e som e h u ngr y t r olls ou t t h er e. Unf or t u n at ely, t h ey w ill n ot ju st ju m ble t h e m essage, bu t som et im es w ill t ake people in t h e w r on g dir ect ion . Th at is t h e r eal danger w h ich is w h y, again , w e?ve been ver y con sist en t an d posit ive in ou r m essagin g on w h at ou r st r at egy is an d h ow w e ar e goin g t o get t h er e. Th is is an ot h er ar ea w h er e I t h in k t h at w e br in g pr of ession alism t o advocacy f or ou r in du st r y. I?m a st at e lobbyist , I k n ow st at e lobbyin g inside abou t ou t . Jake Bu t ch er , VTA?s St at e Af f air s M an -
ager , w h o r u n s ou r st at e af f air s pr ogr am is a st at e lobbyist . Toget h er , w e t ook t h e pr of ession al exper ien ce w e h ad an d applied it t o a st r at egy design ed t o def en d an d pr ot ect t h e indu st r y at t h e st at e level. It ju st w as som et h in g t h at w as lack in g. I t h in k t h e on e t h in g t h e indu st r y h as n ever lacked h as been passion , bu t givin g st r at egic gu idan ce t o t h at passion can be t h e m ost f r u it f u l exer cise t h at w ill r eally m ake t h e m ost dif f er en ce. Th e gr eat t h in g is t h at people ar e r espon din g in a ver y posit ive w ay. TVA:I?m very good friends with Amy Lane, the head of the Indiana SmokeFree Alliance. She has worked directly with Jake and the VTA on coordinating on the state level and sings the praises of the VTA?s commitment to partner with state groups on defending vaping. I am probably privy to a lot of information that the average vaper does not have. There are a lot of resources that VTA offers to the state groups that they partner with, for example, I know that VTA has a PR firm under contract to help these state groups when needed. Can you discuss why that is so important? Ton y Abbou d: Bef or e I an sw er you r qu est ion , I m u st say t h at Am y Lan e is a leader ?s leader . Sh e st epped u p, t ook on a big bat t le, an d w as ou t st an din g t o w or k w it h on def en din g In dian a. Sh e h as been t h e con su m m at e pr of ession al an d sh e h as t aken an en or m ou s am ou n t of t im e n ot ju st t o w or k on h er st at e, bu t also t o w or k w it h t h e leader s of ot h er st at e vapor associat ion s. Sh e h as been r ock solid in h er u n der st an din g of w h at w e w er e t r yin g t o accom plish at VTA f r om t h e begin n in g. Th is is a good t im e f or m e t o k in d of give you t h e ?h ow did w e get
goin g an d w h y ? speech . In 2015, sever al com pan ies r ealized t h at it w as ver y im por t an t t o set u p a n at ion al t r ade associat ion t h at cou ld im plem en t a pr of ession alized st r at egy t h at f ocu sed on t h r ee t h in gs: 1) Feder al Advocacy; 2) St at e Lobbyin g; an d 3) Pu blic Af f air s. If you ?ve ever h ear d m e speak , I u se a slide w it h t h e pr over bial ?t h r ee-legged st ool?, becau se t h ese t h r ee t h in gs ar e absolu t ely essen t ial t o be su ccessf u l in def en din g an u nr egu lat ed in du st r y t h at is in t h e pr ocess of bein g r egu lat ed.To be ef f ect ive in DC an d st at e capit als you n eed t o h ave con sist en t m essagin g, you n eed t o h ave t h e r igh t m essage, an d som et im es you h ave t o h ave t h e r igh t m essage f or dif f er en t audien ces. Bu t k n ow in g w h at t h at is an d k n ow in g h ow t o im plem en t it is som et h in g t h e indu st r y h ad n ot pu t m u ch ener gy, ef f or t , t im e or m on ey in t o. So t h at ?s w h y f r om t h e begin n in g align in g t h e m essage t o legislat or s an d r egulat or s w as a dist in gu ishin g ch ar act er ist ic of t h e VTA. In Jan uar y of 2016 w e got u p an d r u nn in g. We h ad alr eady h ir ed West Fr on t St r at egies w h o h ad been w or k in g on vapor issu es f or year s. Hir in g West Fr on t St r at egies en abled u s t o pr ovide con t in uit y f or t h e indu st r y, as w e w er e im m ediat ely plu gged in t o ever yt h in g t h at w as h appen in g on Capit ol Hill. In 2016, t h er e w as a f ocu s on t r yin g t o get t h e ColeBish op langu age in t o t h e Appr opr iat ion s Bill, an d w e w or ked except ion ally h ar d on t h at .In Apr il of 2016, w e w er e t h e on ly n at ion al indu st r y t r ade associat ion w h ich pu t ou t a call t o act ion on t h e Cole-Bish op bill, w h ich w or ked gr eat alon gside CASAA?s con su m er call t o act ion s. We
pu sh ed it aggr essively w it h West Fr on t St r at egies an d ou r pu blic af f air s t eam , an d it w as t h e f ir st t im e an y pr o-vapin g piece of legislat ion act u ally passed ou t of a m ajor com m it t ee in Congr ess. Th at w as a big st ep f or w ar d f or VTA an d ou r in du st r y. At t h e sam e t im e, w e w er e w or k in g aggr essively again st Sen at or Blum en t h al?s bill ban n in g devices in car r y-on lu ggage, w h ich w as a bill t h at w ou ld h ave m ean t you w ou ld h ave h ad t o leave all you r devices at h om e. Th er e w er e t w o big t h in gs t h at w er e h appen in g in t h e f ir st f ew m on t h s t h at w e w er e of f icially lau n ch ed an d I like t o t h in k w e m ade a big im pact on t h em . An d, t h en t h e Deem in g Regu lat ion w as pu blish ed. Ou r Boar d decided w e n eeded t o br in g people t oget h er as soon as possible t o st ar t edu cat in g on t h e sign if ican ce of t h e Deem in g Regulat ion . Becau se t h e VTA Boar d h ad an en or m ou s am ou n t of FDA r egu lat or y exper ien ce, w e w er e able t o r elease, alm ost im m ediat ely, gu idan ce docum en t s int er pr et in g t h e Deem in g docu m en t s t h at w er e bot h in f or m at ive an d su bst ant ive. We also h ost ed ou r f ir st big con f er en ce in Ju n e of 2016 r igh t af t er t h e Deem in g Regulat ion s cam e ou t . It w as a h u ge t ask pu t t in g t h at con f er en ce t oget h er in su ch a sh or t am ou n t of t im e bu t it t u r n ed ou t t o be a su ccess. We h ad over 200 bu sin esses r epr esen t in g 25 st at es an d excellen t speak er s an d FDA law yer s w h o w er e able t o br eak dow n ever y layer of t h e Deem in g Regulat ion on t h e f ir st day. Th e secon d day w e w er e able t o set u p m eet in gs f or over 150 people on Capit ol Hill w h ich I r eally believe h elped
Ohio Vapor Trade Association.
Matt Milby, George Cassels-Smith, and Tobias Tedrowe talk during break.
VTA Conference participants engaged in speaker presentation
u s est ablish ou r selves as a t r ade or gan izat ion . Th at w as anot h er big day f or u s in 2016.? ?Fr om t h er e w e w er e able t o r oll ou t ou r st r at egy.? I r eally t h in k t h e st r en gt h of VTA is t h e pr of ession al boar d w e h ave. VTA?s Boar d is m ade u p of in du st r y t h ou gh t leader s an d vet er an s w it h deep pu blic policy an d r egu lat ed indu st r y exper ien ce. Boar d m em ber s in clu de Br it t an i Cu shm an , Tu r n in g Poin t Br an ds, In c.; Geor ge CasselsSm it h , e-Liqu iTech , In c.; Set h Coblen z, VM R Pr odu ct s; Ar n au d Du m as de Rau ly, GaiaTr en d USA; St acey Ham ilt on , Kaleidoscope Vapor ; Ch r is How ar d, EAlt er n at ive Solut ion s; Pat r icia Kovacevic, Nicopu r e Labs; an d m ost r ecen t ly w e w er e excit ed t o an n ou n ce t h e addit ion of Josh Ch u r ch of Joyet ech Gr ou p. Th e leader sh ip t h ey pr ovide is u n m at ch ed. Th ey set t h e policy. Th ey set t h e t on e. I?m t h e w or ker bee t h at get s t o im plem en t it . Wh en it com es t o policy m at t er s, w h en it com es t o t h e pr in ciples t h at w e espou se, t h is gr ou p of pr of ession als k n ow t h eir st u f f , t h ey k n ow t h e indu st r y f r om on e en d of t h e dist r ibu t ion ch ain t o t h e ot h er , an d t h ey k n ow t h ese r egs in side an d ou t . I of t en n ot e t h at t h e VTA Boar d h as f or got t en m or e abou t FDA r egulat ion s t h an I w ill ever k n ow , w h ich is on e r eason it is a pr ivilege t o w or k f or t h em . TVA :I try to explain to people why I think that VTA is a value to the vaping industry, I point out that having people who have been in DC fighting for tobacco in the past on our side is a good thing. They know the big players, they know the tactics, you want a veteran in that battle fighting for your side.
Ton y Abbou d: Exact ly. You w an t vet er an s f igh t in g t h is f igh t . Th e f act t h at ou r Boar d k n ow s t h e t obacco w or ld inside an d ou t is ext r em ely im por t an t in m ak in g su r e t h at vapor r em ain s pr ot ect ed. If you t h in k abou t it , t h e f olk s t h at don?t k n ow h ow t obacco oper at es ar e t h e f olk s t h at ar e goin g t o be m ost su scept ible t o n ot ant icipat in g w h at is goin g t o be h ar m f u l t o vapor an d m ak in g su r e it doesn?t h appen . Yes, you can alw ays ar gu e f or absolu t es, m eanin g ?Th is is r igh t an d t h e ot h er ar gu m en t is w r on g so w e cann ot do an yt h in g bu t ar gu e f or w h at w e believe is r igh t . You can do t h at , bu t t o m e t h at is h ow t h in k t an k s oper at e. Th ey h ave polit ical ph ilosoph ies, policies an d belief s an d t h ey pu sh t h ose t o t h e h ilt . Bu t , VTA is a t r ade associat ion an d w h en it com es dow n t o it , w e ar e f ocu sed m ake act u al policy ch an ges t h at ar e goin g t o pr ot ect t h e indu st r y f or t h e lon g t er m . Yes, t h er e ar e t im es w e ar e goin g t o h ave t o m ake com pr om ises in or der t o placat e bot h sides of Con gr ess or m em ber s of a st at e legislat u r e. So, w e h ave t o elevat e ou r gam e an d be pr epar ed on cr it ical issu es. For exam ple, m an y f olk s ju st say n o t o t axes. We agr ee! We don?t w an t t axes eit h er . Bu t , t h er e is goin g t o com e a poin t w h er e it is im possible f or u s t o avoid a t ax, even t h ou gh w e?ve been ver y su ccessf u l in beat in g back t axes t h is year in m an y st at es an d w e w ill con t in u e t o do so. So, w e n eed t o be r eady t o def en d an d lever age t h e best ou t com e f or vapor . You can?t do t h at w it hou t k n ow in g all of t h e st akeh older s an d int er est ed par t ies t h at w ill h ave som e say on t h is im por t an t issu e. We?ve t aken on som e big f igh t s t h is session . We w ou ld n ot
h ave h ad t h e vict or y in In dian a if n ot f or people like Am y Lan e. Big bat t les like In dian a an d Pen nsylvan ia ar e goin g t o be m or e f r equ en t in 2018. Bu t , w e ar e r eady. TVA: It?s hard for me to understand with the success of Indiana, and how much praise Amy Lane has given you for your help, that more states don?t jump on board. Ton y Abbou d: In dian a is a gr eat exam ple of h ow t o do it r igh t . Wit h Am y h elpin g or gan ize people on t h e gr ou n d, pr ovidin g st eadf ast leader sh ip in t h e f ace of cr it icism , com m u n icat in g ef f ect ively w it h h er m em ber s an d pot ent ial m em ber s abou t st r at egy, f in din g t h e r igh t lobby t eam an d im plem en t in g a pr of ession alized appr oach it w or ked.Look w h at h appen ed. Toget h er , w e did w h at m an y t h ou gh t w as im possible an d w h ich n o on e else even con sider ed doin g:w e r e-open ed t h e st at e of In dian a f or ALL vape com pan ies. Tw o year s bef or e t h at people w er e sayin g, ?In dian a is dead t o u s.? Bu t , w h at w e pr oved is t h at t h e r igh t st r at egy an d r igh t t eam can w in f or vapor . Even m or e excit in g is t h at f act t h at w e alr eady ar e w or k in g w it h m or e t h an 20 st at es an d m or e st at es ar e join in g u p becau se st at e leader s w an t t o be par t of t h e n et w or k of ot h er st at e vapor leader s an d st at e lobbyist s t h at Jake Bu t ch er w or k s w it h on a daily basis. TVA: One of the things I think the VTA does so well, something that might have been lacking in the past with other organizations is the strong communication and coordination you have with Jake Butcher in his position as State Affairs Coordinator. Ton y Abbou d: Jake is ou t st an din g.He is a sm ar t st at e lobbyist , h e u n der st an ds vapor , is incr edibly dedicat ed, an d is t ou gh on
Tennessee Smoke Free Association
Maryland Vapor Alliance
Abboud, and Kristi Remington of West Front Strategies chat with Sen. Johnson before his keynote address.
vapor oppon en t s. He h as don e an ou t st an din g job w or k in g w it h st at e vapor associat ion s. Wh en w e lau n ch ed VTA, w e believed t h at ou r in du st r y n eeded t o h ave a vibr an t an d soph ist icat ed associat ion s pr esen t in all t h e st at e capit ols, an d t h at w e n eeded t o h elp gr ow st r on g st at e associat ion s - w it h t h eir ow n boar ds an d t h eir ow n f u n dr aisin g m echan ism s - so t h ey ar en?t r elyin g on u s t o t r ick le dow n f u n ds t h at ar e don at ed. Th ose ar e t h e gr ou ps t h at st at e legislat or s r espon d t o m u ch m or e t h an an y sor t of n at ion al t r ade associat ion . Com pan ies in ou r indu st r y n eed t o be in vest ed in t h e gr ou ps w e ar e w or k in g w it h becau se w h en you h ave a pr of ession al lobbyist in place, an d a st r at egy, an d you h ave t h e su ppor t of indu st r y pr of ession als f r om VTA, t h er e is n o lim it t o t h e su ccess you can h ave at t h e st at e level. On e of t h e biggest t h in gs w e h ave don e is h elp pick t h e r igh t lobbyist s. Vet t in g t h e lobbyist is en or m ou sly im por t an t .Havin g t h e r igh t lobbyin g t eam h as been a h u ge dif f er en ce m aker . Ou r vision is t h at ou r indu st r y h as a st r on g n et w or k of t r ade associat ion s at t h e st at e level t h at w ill m ir r or in st r en gt h , f or exam ple, con ven ien ce st or e associat ion s or t h e br oader r et ailer associat ion s or m er ch an t associat ion s.We m igh t n ot ever be as big, bu t w e can be ju st as st r on g. We do n ot seek t o bu ild VTA u p at t h e st at e level, bu t h elp an d n u r t u r e st r on g, st at e t r ade associat ion s t o best r epr esen t t h e vapor in du st r y, an d do ever yt h in g w e can t o pr om ot e an d advan ce t h em . TVA: Ok so on to a national level, let?s talk about how the FDA happened and the long road to the extension. Ton y Abbou d:Sin ce last year w e
ch ar t ed a t w o-ph ase st r at egy.Ph ase On e, w e can call t h at ?Savin g t h e In du st r y ?. Th at m ean t com in g u p w it h som e sor t of sh or t t er m r elief so t h at t h e indu st r y w asn?t u nder t h e en or m ou s f in an cial pr essu r e of t h e PM TA deadlin e. Ph ase Tw o, I call ?Secu r in g t h e Fut u r e.? Th at m ean s ch an gin g t h e r egu lat ion s t o t r eat vapor as t ech n ology pr odu ct s. Bu t , as soon as t h e elect ion h appen ed, I t h ou gh t , n ot on ly ar e w e goin g t o be able t o execu t e Ph ase On e, bu t w e h ave a gr eat oppor t u n it y t o execu t e Ph ase Tw o.
over all.It w as a ver y pr odu ct ive m eet in g. Th eir r espon se w as t h at w e h ave t o w ait f or Dr . Scot t Got t lieb t o get in place, as com m ission er h e m igh t h ave a lot t o say abou t t h is. Ou r m essage t o t h em w as, ?We appr eciat e t h at , bu t t h is is u r gen t , t h is h as t o be addr essed n ow.? We w er e ver y in sist en t on t h e u r gen cy, becau se w e n eeded t o get som e sor t of cer t ain t y f or t h e indu st r y so w e cou ld m ove f or w ar d.
Wh at w e decided t o do is t r y t o con vin ce t h e FDA t h at it sh ou ld u se t h eir en f or cem en t discr et ion , w h ich t h ey h ad alr eady don e on ext en din g t h ese ot h er deadlin es t o ext en d t h e deadlin e f or PM TA becau se t h at w as t h e on e t h at w as loom in g lar ge an d cr eat in g t h e biggest level of u n cer t ain t y f or t h e w h ole indu st r y. By spen din g all t h at t im e an d m illion s of dollar s on PM TAs, t h e u ncer t ain t y cr eat ed by t h e n ot ion t h at 99% of pr odu ct s on t h e m ar ket m igh t disappear m ade it im possible f or ot h er elem en t s of ou r bu sin ess t o m ake decision s abou t t h e f ut u r e. So, on ce t h e ch an geover h appen ed w e k n ew w e h ad t o get in t h er e an d edu cat e t h e n ew player s at t h e FDA, at HHS an d at t h e Wh it e Hou se. We ask ed ou r t eam t o set t h is u p as qu ick ly as possible.
Sh or t ly t h er eaf t er w e w en t in t o m eet w it h t h e Wh it e Hou se, again at t h e h ighest levels. We w er e able t o t alk t o t h e f olk s t h er e in sign if ican t det ail abou t w h at n eeded t o be don e n ext , an d w h y t h e t h r ee-m on t h ext en sion FDA h ad ju st given w asn?t goin g t o be su f f icien t f or t h e in du st r y. We f ocu sed on t h e n eed f or a lon g-t er m ext ension of t h e PM TA deadlin e in or der f or bu sin esses t o be able t o pr oper ly plan an d com ply given w h at t h e FDA w as dem an din g. We m ade a st r on g pu sh du r in g t h e m eet in g abou t t h e im por t an ce of vape sh ops t h at ar e in ever y cor n er of ever y st at e an d explain ed w h y all t h is u ncer t ain t y placed sh ops in an u nt enable bu sin ess posit ion , f or cin g t h em t o close. We an sw er ed legal, policy an d f act u al qu est ion s an d also lau n ch ed ou r Get on t h e M ap in it iat ive t o pr ovide t h e Wh it e Hou se an int er act ive m ap of all t h e vapor bu sin esses in t h e U.S.
On Apr il 24, w e w en t in t o m eet w it h sen ior leader sh ip at HHS t h e decision m ak er s t h er e. We h ad a pr of ession al pr esent at ion , discu ssed all t h e issu es, br ou gh t t h em all t h e dat a w it h all t h e pr oblem s w it h PM TAs, cost s associat ed, t im e issu es, t h e im pact on bu sin esses, an d edu cat ed t h em abou t t h e vapor indu st r y
Fin ally, VTA st or m ed Washin gt on , D.C. on Ju ly 17 an d 18, t ak in g m or e t h an 100 people t o Capit ol Hill af t er anot h er su ccessf u l in du st r y con f er en ce t h at w as h eadlin ed by Sen . Ron Joh n son of Wiscon sin . On t h e Hill t h at w eek , ou r m em ber s asked t h eir M em ber s of Congr ess t o sen d a pr edr af t ed let t er t o Com m ission er
Got t lieb ask in g f or a delay in t h e PM TA deadlin e. Wh ile in r et r ospect it is clear t h at FDA w as w or k in g on t h e Ju ly 28 an n ou n cem en t alr eady, w e k n ow t h at t h er e w er e a n u m ber of Con gr ession al m em ber s w h o eit h er placed calls or sen t let t er s af t er ou r Day on t h e Hill in m idJu ly w h ich h opef u lly r einf or ced t h e dir ect ion t h at FDA alr eady w as m ovin g. Th ose w er e ju st som e of t h e sign if ican t pieces w e h ad pu t in place bef or e t h e big an n ou n cem en t . TVA: So, now we get to talking about the bigger picture and long term. What can you tell us about the VTA?s long term strategy? Ton y Abbou d:Win ! TVA: I?ll quote you on that. Ton y Abbou d: Th e gr eat t h in g abou t t h e ann ou n cem en t by t h e FDA in Ju ly, w as t h at t h ey r ecogn ized f or t h e f ir st t im e t h e t r u e h ar m r edu ct ion pot en t ial of vapor pr odu ct s. Th ey ?ve expr essed an open n ess t o addr essin g t h e pr oblem s of inn ovat ion in t h e m ar ket , or t h e absen ce t h er e of , an d t h ey expr essed a w illin gn ess t o r evisit t h e r equ ir em en t s t h at ar e cu r r en t ly bein g im posed f or br in gin g pr odu ct s t o m ar ket . Ou r plan ver y sim ply is t o r esh ape t h e w ay FDA h as looked t o r egu lat e vapor pr odu ct s an d in su r e t h ey t r eat t h em as t h e t ech n ology pr odu ct s t h at t h ey ar e. Regu lat ion s h ave t o m at ch t h e t ech n ology, as w ell as t h e r ealit y of a t ech n ology pr odu ct bu sin ess cycle. Th is f ou r year ext en sion is ir r elevan t if w e can?t in n ovat e, an d an yon e t h in k in g t h ey ar e ju st goin g t o sell pr odu ct f or t h e n ext f ou r year s an d t h en exit is ju st goin g t o h u r t t h e indu st r y in t h e lon g
r u n . Wh at w e h ave been given is an oppor t un it y t o w or k w it h t h e FDA t o f in d t h e r igh t r egu lat or y sch em e so t h at w e can keep in n ovat in g. Th e secon d t h in g w e h ave t o do is t alk t o FDA abou t im plem en t in g a st an dar ds-based r egulat or y sch em e. Th e cu r r en t r egulat or y plan is based on ver y st r in gen t t est in g pr ot ocols w h ich u lt im at ely r equ ir e u s t o pr ove n egat ives, som et h in g w h ich is bot h ph ilosoph ically an d pr act ically im possible. Un t il t h e Ju ly 28 FDA ann ou n cem en t , you cou ld alr eady see m an y com pan ies sh if t in g t h eir f ocu s t o ot h er m ar ket s in Eur ope an d t h e r est of t h e w or ld. Th e US m ar ket is ju st t oo im por t an t f or t h at t o h appen .So w e h ave t o get t h is cor r ect , w h ich m ean s w e h ave t o con vin ce t h e FDA t o est ablish a r egu lat or y plan t h at says, ?If you m ake a pr odu ct accor din g t o t h ese st andar ds you w ill be able t o sell you r pr odu ct s in t h e m ar ket place. ?Individu al com pan ies an d individu al pr odu ct s sh ou ld n ot be h eld t o a pr odu ct st an dar d t h at n o ot h er con su m er pr odu ct on t h e m ar ket h as ever h ad t o r each , m u ch less an y com bu st ible t obacco pr odu ct . Bu t , t h at ?s w h at t h ey ?ve don e w it h t h e cu r r en t set of r egulat ion s. Th ey ?ve im posed u pon a pr odu ct w h ich is at least , an d pr obably su bst ant ially m or e t h an , 95% less h ar m f u l t h an cigar et t es a st andar d w h ich is h igh er t h an t h e st andar d h ist or ically im posed on cigar et t es. Th at h as t o ch an ge. We ar e ver y h appy abou t t h e delay. Not becau se it gives u s f ou r m or e year s t o do bu sin ess, an d n ot becau se it solves ou r pr oblem s. It doesn?t . In st ead, becau se it gives u s a sh or t t im e
f r am e in w h ich t o m ake r igh t t h ese r egu lat ion s. VTA is goin g t o be ver y aggr essive in pu shin g f or w ar d t o est ablish a n ew r egu lat or y sch em e. We believe t h is adm inist r at ion is t h e f ir st t h at seem s w illin g t o r eally look at t h is in a m an n er t h at sh ou ld be f air t o t h e en t ir e indu st r y. Legislat ive ch an ges t ake year s, if t h ey ever h appen at all. So, ou r f ocu s r igh t n ow is at t h e adm in ist r at ion level. TVA:You mentioned standards based regulation.What would that look like? Ton y Abbou d: We ar e excit ed abou t t h e f u t u r e at VTA. We ar e assem blin g ou r Ret ail Advisor y Cou n cil t o iden t if y an d addr ess t h e cor e r et ail issu es t h at ou r m em ber sh ip n eeds addr essed. Also, w e ar e expan din g ou r Boar d of Dir ect or s an d ar e excit ed t h at Joyet ech Gr ou p h as ju st join ed t h e Boar d. An d, w e ar e est ablish in g st an dar ds developm en t t ask f or ces. Th ese t ask f or ces w ill be com posed of people w it h r eal t ech n ical exper t ise, i.e., ch em ist s, bioch em ist s, en gin eer s, et c., so t h at w e can ch ar t ou t w h er e ou r in du st r y n eeds t o go an d t r y t o en su r e t h at w e h ave a sm ar t set of r egu lat ion s t h at t h e in du st r y can com ply w it h . TVA: So there is currently a good bit of talk within the vaping community and industry about labels and whether or not some of the labels used by companies in the industry are detrimental to advocacy efforts or cause us issues with legislators. The vaping industry primarily uses social media for all of its advertising, so you see a lot of cartoon characters and candy labels held up by attractive women in various states of dress on Instagram and Facebook. Many are pointing this out to be inappropriate or unprofessional and even
Br eat h e Easy Allian ce of Alabam a leader s, an d VTA Boar d m em ber s m eet in g w it h Ch air m an Ader h olt .
child-appealing. Has this ever come up in your meetings with legislators? Ton y Abbou d: Oh yeah .It ?s in cr edibly im por t an t becau se as an in du st r y if w e can?t even dem on st r at e a cer t ain m odicu m of pr of essionalism an d appr opr iat en ess t h en w e lose cr edibilit y. Un f or t u n at ely, w e don?t h ave t h e lu xu r y of t h e ?on e bad apple? ar gu m en t becau se w e don?t h ave en ou gh cr edibilit y as an indu st r y yet . We ar e w or k in g except ion ally h ar d on t h at . Th at ?s t h e poin t of h avin g t h e r igh t t eam in place in Washin gt on DC w h o ar e t alk in g t o M em ber s of Con gr ess an d t h eir st af f s on a daily basis. Th e sam e t h in g is t r u e w it h t h e st at e legislat u r es - t h e lobbyist s an d m em ber s of ever y st at e t r ade associat ion w h o ar e t r yin g
t o bu ild cr edibilit y an d a r eput at ion of bein g sou n d bu sin ess people. Un f or t un at ely, even if w e cou ld, w e can?t say it is ju st on e bad apple, becau se as a lot of f olk s h ave poin t ed ou t t h er e is m or e t h an on e. You can see w it h t h e am ou n t of con ver sat ion in t h e indu st r y on social m edia ju st h ow bad it is. To addr ess t h e issu e h ead on , VTA w ill be r ollin g ou t indu st r y m ar ket in g st an dar ds f or ou r m em ber s ver y soon . TVA:It looks like the end of 2017 is going to have you very busy. Ton y Abbou d: Yeah , w it h t h e ext ension , w e h ave been given t im e t o pr ove t h at w e ar e a m at u r e, r esponsible indu st r y an d VTA w ill be w or k in g in DC t o pu sh f or a r egulat or y sch em e
t h at w ill allow t h e indu st r y t o con t in u e t o be inn ovat e w it h a secu r e f u t u r e. We w ill be m eet in g w it h t h e FDA an d w e w ill be pr esen t in g t o decision m ak er s ou r best case f or a r eason able set of r egu lat ion s t h at t r eat vapor pr odu ct s as t h e inn ovat ive an d gr ou n d br eak in g t echn ologies t h at t h ey ar e, r at h er t h an ant iqu at ed com bu st ible t obacco pr odu ct s. Th ese ar e excit in g t im es an d w e ar e excit ed abou t t h e t r aject or y of ou r gr ou p as w ell as t h e t r aject or y of ou r issu es.We h ave so m u ch w or k t o do bu t , as I?ve said m an y t im es, ?We ar e bu ilt f or t h is f igh t ! Join u s!?
To Join The VPA or to learn more about their efforts please visit
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Above: Ton y Abbou n d
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Mark Cassar, Jason Carignan and Tommy Chong at TPE 2017
TOBACCO PLUS EXPO CONTINUES TO GROW WHAT WAS ONCE THE PREMIERE TOBACCO B2B SHOW NOW LEADS IN VAPOR AND ALTERNATIV PRODUCTS! By Gabr iel Benson
The Tobacco Plus Expo 2018 takes place at the Las Vegas Convention starting on January 30th-February 1st. To register please visit www.TobaccoPlusExpo.com. The Tobacco Plus Expo has expanded dramatically over the past nine years that Kretek International and Phillips & King have owned the show. What was once heavily influenced by traditional tobacco products, the show floor is now home to expanded sections that are selling the latest vape and alternative products. ?It was our goal in 2017 to really offer a wider array of products to our buyers, and as a result of our efforts 2 WEBSITE.COM/MAGAZINE
we saw a 200% increase in buyers on the show floor and that lead to record sales days,? Jason Carignan recently told this magazine. ?And this year we have increased our buyers incentives by working with our vendors to offer the best deals of the year on products.? In addition, TPE has expanded its already robust educational seminars. TPE has increased its partnership with NATO, which will bring the top
level of advocates to all panels. These panels will attack head on national and local issues including flavor bans, the tobacco 21 initiatives and every other issues facing our industry. One of the highlights of the show will be the panel entitled ?Vapor: A Survivor?s Game.? The panel will include Jan Verleur (CEO-VMR), Brittani Cushman (VP Of External Affairs at Turning Point Brands, Tyler Goldman (CEO - Pax Labs, Inc) and Jacopo D?Alessandris (President, E-Alternative Solutions). The great thing about the educational panels is that they do not interfere with the sales on the show floor. In fact, many panels require attendees to travel through the show floor (and past booths strategically offering deals) in order to arrive at a seminar. Whether you are a new brand looking to gain a foothold. Or and established brand trying to branch out into new markets. The TPE show has proven to be one of the strongest and best produced shows of the year. And even better, it?s late January start date means it is your first chance to hit the ground running in 2018.