TOB Magazine

New

Beginnings

A new administration could be

good for the vapor industry.

Focus on the

big picture!

The only way

we will make

it through

the current

regulatory

crisis is to

stand strong

beside each

other and

work in

unison.

The United States of America saw an unprecedented pres-

idential campaign in 2016, and now President Trump has

taken office. For the vapor industry, at least, it could poten-

tially be a brave, new world.

The vapor space, from manufacturers down to retail vape

shops, has been under constant threat. In the bright, ear-

ly days of the e-cig world, most people assumed that san-

er heads would prevail—there was no way the FDA would

ultimately issue regulations that would finish the industry.

But then FDA issued the final deeming regulations and for

those whom the full weight and understanding of those

regulations had not been entirely clear, it was suddenly and

unquestionably confirmed that the situation was dire. The

decision about how to move forward was one that each busi-

ness had to make.

Now, with a new administration firmly in place, talk that

started after the election has blossomed into full blown stra-

tegic conversations about what we can realistically look for-

ward to with regards to changing the deeming regulations or

amending the Tobacco Control Act.

While everyone in the vapor supply chain is at risk, it is

understood that manufacturers are first in the line of busi-

nesses affected by the FDA’s deeming regulations, specif-

ically because of the onerous Pre-Market Tobacco Appli-

cation (PMTA) process. Relatively long-established vapor

businesses have spent two or three years deciding which

(legislative, business, legal) options to pursue in response to

the FDA regulations.

Hometown Hero is an e-liquid manufacturer located in

Austin, Texas. Interestingly, the company started in 2015,

when many others were preparing to shutter their business-

es or scale back significantly. I sat down with founder Lukas

Gilkey to discuss the future, and how he dared to enter an

industry that was fighting for its life. To follow are excerpts

from that conversation:

Why did you start your company?

LG: I started Hometown Hero in early 2015 simply be-

cause I was unhappy with the products on the market in

regards to quality and price. I knew I could make a bet-

ter product in consistency and flavor, and hit a lower price

point for consumers. The regulatory hurdles had distract-

ed many competitors and I saw a massive opportunity to

take market share while keeping a focus on what is import-

ant. By hiring dedicated specialists for our regulatory and

Former executive

director of SFATA,

Cynthia Cabrera

is an independent

consultant at The

Cating Group.

VAPOR VOICE

[ CYNTHIA CABRERA ]

compliance needs, we were able to address those issues

while focusing on our core business value to consistently

provide a better product by giving the retailers/consumers

the best value possible.

Aside from the FDA deeming regulations, what else

do you think is a major stumbling block for the va-

por industry?

LG: I would say our inability, as an industry, to overcome

the negative press from detractors who wish nothing more

than to see the e-cigarette space regulated to death, with no

benefit at all to former smokers who now vape.

We are a veteran-owned company and donate a portion

of our profits to Disabled American Veterans because we

think it’s important to give to those in need. It should be

the same for FDA or CDC. Their anti-vapor positions and

ideology make it hard for us to have faith that they will

come to the understanding that their policies hurt busi-

nesses—but more importantly, they hurt smokers who

want to switch over to a less harmful alternative. As a for-

mer smoker, it is disheartening to see this play out, espe-

cially when the science proves vapor products are a viable

harm-reduction product.

What are your goals for Home Town Hero and the

vapor industry?

LG: Focus on the big picture! The only way we will make

it through the current regulatory crisis is to stand strong be-

side each other and work in unison. We support CASAA

(Consumer Advocates for Smoke-Free Alternatives Associ-

ation) and work with them closely to help secure a future

for this industry and the companies currently in it. We hope

others will strategically support the organization that reso-

nates with them and collaborate with others.

New Administration, New Rules?

It says a lot about the human spirit and the drive to be an

entrepreneur that a company like Hometown Hero would

choose to open their doors at the height of the drama creat-

ed by the issuance of the FDA deeming regulations, but it’s

not just them—other companies have doubled down to fight

for their dreams rather than fold up their tents and go home.

Now, with a new administration in office, it is possible that

the bet placed by Hometown Hero and others could pay off.

President Trump and Congress could unwind some of the

regulatory burden that vapor companies are saddled with.

We can entertain a future where the deeming regulations are

rolled back in some fashion and replaced with something

more appropriate. Whether you are a Trump supporter or

not, his campaign position that U.S. businesses are being sti-

fled by over-regulation is one that speaks to the fundamental

problem the vapor industry faces. With a willingness to look

at regulation based on a risk profile (rather than treating

vapor products as if they were equally as dangerous as com-

busted cigarettes), the industry stands a chance. Reasonable

and proportionate regulations, proper product standards,

and a public health mandate that includes true harm re-

ductions embody that promise of a brave, new world.

[ T O B A C C O B U S I N E S S . C O M ]

TOBACCO BUSINESS

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