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14
TOBACCO BUSINESS INTERNATIONAL
MAY/JUNE 2015
NEWS & TRENDS
MAY/JUNE 2015
Highlights
Washington
Legislators Tar-
get E-Cigarettes
A new bill would give Washing-
ton the nation’s toughest laws
regulating e-cigarettes.
Proposed regulation in Washington state
would require retailers to have a special
license to sell e-cigarettes, manufacturers
to list all ingredients in e-juices, would ban
non-tobacco-flavored vaping products
and would tax e-cigarettes at the same
rate as other tobacco products (OTPs).
As a result, consumers would pay a 95
percent tax on the items compared to the
standard sales tax they now pay for e-cig-
arettes and e-juices.
“Every time we raised the price of ciga-
rettes we reduced youth smoking,” said
the bill’s sponsor, U.S. Representative
Gerry Pollet (D-Seattle), who views vaping
as an effort by the tobacco industry to cre-
ate a new generation of nicotine addicts.
“It’s not safe, it’s highly addictive and you
don’t know what else is in it,” he charges.
His proposal spurred hundreds of va-
pers and e-cigarette storeowners to testify
against the bill during a public hearing on
March 16 in Olympia, Washington. Con-
sumers who testified shared their stories
about transitioning from traditional ciga-
rettes to vaping, many painting e-ciga-
rettes as “a life-changing intervention.”
They protested the proposal, noting that
making e-cigarettes harder to find and
less appealing due to flavor limitations
might force some consumers to return
to cigarettes and dissuade other smokers
from switching.
Retailers also protested the proposal.
While some are expressing willingness to
adopt a licensing process, all expressed
concern over the idea of eliminating fla-
vors and invoking a huge tax hike. Andy
Kibler, owner of Olympia Vapor in Tumwa-
ter, reportedly referred to the proposal as
“an atom-bomb approach to something
that could be done with a little more fi-
nesse.”
Mistic Returns to the Raceway
Company plans to continue racing sponsorships
it began in 2014.
Value-priced electronic cigarette maker Mistic has decided to continue to serve
as co-primary sponsor for the No. 11 car piloted by KVSH Racing’s Sebastien
Bourdais for the 2015 Verizon IndyCar Series. The company will also retain its as-
sociate sponsorship of the SH Racing Rallycross No. 7 Ford Fiesta ST car for the
2015 Red Bull Global Rallycross (GRC) season. Both sponsorships began in 2014.
“While traditional tobacco historically has dominated auto racing in the past, we
have since become a prominent sponsor within the IndyCar and GRC circuits as
e-cigs and vapor products continue to replace smoking,” says John Wiesehan
Jr., CEO of Mistic. “These platforms have enabled us to build awareness for
our Mistic and HAUS brands among adult smokers as significant alternatives to
traditional tobacco.”
At IndyCar and GRC racetracks during 2015, adult smokers will be able to
visit the Mistic/HAUS kiosk and engage with members of the Mistic Pit Crew to
learn more about the company’s products. Fans will also have the opportunity
to ride in virtual race simulators and compete against driver Sebastien Bourdais
in mock competitions.
Last year Bourdais finished 10th in the championship with three poles, a win
at the Honda Indy Grand Prix of Toronto, and a seventh place finish at the India-
napolis 500. He is a four-time series champion with 32 career wins, 49 podiums
and 33 poles.
“We are thrilled to continue our relationship with Mistic for the 2015 IndyCar
and GRC series season,” says James “Sulli” Sullivan, KVSH Racing partner and
principle at SH Racing Rallycross. “Our teams are coming off solid seasons and
are poised to continue their success this year, which promises to be very exciting
with IndyCar’s newly designed aero kits and a host of new venues at GRC races.”
Featuring racing at a combination of superspeedways, short ovals, road cours-
es and temporary street circuits, the Verizon IndyCar Series offers its international
lineup of drivers the most diverse challenges in motorsports. The top point scorer
is crowned the series cham-
pion and receives a $1 mil-
lion bonus.
The Red Bull Global Ral-
lycross Series features
extremely diverse tracks
consisting of combina-
tions of dirt and tarmac,
as well as other various
obstacles. The HAUS GRC
car will produce more than
600 pounds of horsepower
and can accelerate from
0-60 mph in 1.9 seconds.