Grocery Business - June 2016

The long wait is over, and while the answer may not be what the e-cigarette industry wanted to hear, at least it is out here and steps can be taken to deal with it.

In early May, the Food and Drug Administration issued new rules that extend federal regulatory authority to the burgeoning e-cigarette market for the first time. Correctly, the federal agency banned the sale of e-cigarette products to anyone under the age of 18 and required people under the age of 26 to show photo identification to purchase e-cigarettes, according to an article in The New York Times.

These steps, which may be unpopular within the vaping industry, are absolutely necessary given the simple fact that no one knows the long-term effects of using these products. The government needs to take steps to protect certain segments of the public—particularly easily-influ-enced children—until they are certain of any long-term health ramifications of e-cigarette use.

However, there is some question that
the government is going too far when
these regulations take effect in mid-sum-
mer. Some industry gurus, supported
by a bevy of scientists and even some
healthcare officials, say that e-cigarettes
are a legitimate option for those who are
trying to quit smoking cigarettes, and
they do not entice an e-cigarette user to
eventually start using traditional tobacco
products. In fact, reports suggest that
traditional smoking rates have declined
among younger consumers since the
introduction of e-cigarettes nearly a
decade ago.

Some go so far as to say that there are little or no side effects from using e-cigarettes and the government should simply stay out of their business.

Perhaps more concerning for the vaping industry is the fact that the FDA’s involvement will result in an seemingly endless and costly amount of bureaucratic red tape that may be okay for the larger companies in the industry, but it will kill many of the smaller, more nimble companies that simply do not have the manpower to satisfy the hefty demands of the government. The new rules will require manufacturers to register with the FDA, provide a detailed account of their products’ ingredients and their manufacturing processes, according to the Times article. Producers will also have to apply to the FDA for permission to sell their products. The American Vaping Institute estimates this will take 1,700 hours and cost $1 million, the article states.

The FDA needs to make sure that this
does not happen and all players in the
field have the same opportunity to suc-
ceed on a level playing field.

With that aside, the bottom line is that no one involved in the e-cigarette industry thought that they would escape the eye of the FDA forever. Now that the regulations are down on paper, the vaping industry needs to develop the right production and marketing plans to keep this high-flying segment headed in the right direction.

THE RETAIL PET INDUSTRY IS GETTING ANOTHER SHOW. Urban Expositions is launching P3/Progressive Pet Products. The event will take place at Chicago’s Navy Pier, near downtown, Aug. 24-25. Show officials say the new event will deliver a “forward-looking, fun trade show experience to one of America’s top destination cities—pairing the market’s newest pet products with exceptional educational programs.”

P3 is taking the place of the Backer Show, a retail pet event that at one time was one of the most important gatherings for the industry. With the growing success of the Global Pet Show in Orlando, Fla. in the late winter and SuperZoo in Las Vegas in August, Backer took a fatal blow several years ago.

Whether the people who run P3 can add another national show to the calendar remains to be seen, but there is little doubt that some pet industry officials, particularly in the Midwest, are excited to get another choice.