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TOBACCO BUSINESS INTERNATIONAL
MARCH/APRIL 2016
NEWS & TRENDS
MARCH/APRIL 2016
A 10-person jury unanimously re-
jected claims made in a class-action
lawsuit seeking to force Philip Morris
USA to pay for a court-ordered medi-
cal monitoring program. Plaintiffs in
the case, which was originally filed in
2006, failed to persuade the jury that
Marlboro cigarettes were defective.
The “unanimous verdict again
demonstrates that these types of
medical monitoring claims are mer-
itless,” noted Murray Garnick, Altria
Client Services SVP and associate
general counsel. “The jury soundly
rejected that Marlboro cigarettes are
defectively designed. This was the
third case of its kind to go to trial,
and in each, the jury ruled in favor of
Philip Morris USA.”
However, further proceedings are
expected in the district court, as
the judge presiding over the case
decides whether there was a viola-
tion of Massachusetts’ consumer
protection act. Plaintiffs in the case
are seeking a 28-year medical moni-
toring program estimated to cost
$190 million. The class includes all
Massachusetts smokers who, as of
February 2013, were at least 50, had
at least a 20-pack-per-year history of
smoking Marlboro cigarettes, and
have neither been diagnosed with
lung cancer nor are under investi-
gation by a physician for suspected
lung cancer.
Jury Verdict Favors PM USA
Massachusetts smokers’ claim against Philip Morris has hit a roadblock.
Vape Shop Channel Continues Growth
On average, vapor-only shops generate more than $300,000 per store annually, according
to a new report.
According to the
2015 Vape Shop Index
released by ECigIntelligence, Roebling
Research, E-Cigarette Forum and the
Smoke-Free Alternatives Trade Asso-
ciation (SFATA), the vape shop channel
accounts for more than $1.5 billion in
annual sales. Not surprisingly, the bulk
of those sales (60 percent) was in e-liq-
uids, with fruit and dessert flavors rank-
ing as the top sellers.
The index analyzed financial, product
and brand-level data, including trends,
preferences and owner attitudes from
540 vape shops across 42 states, says
Tim Phillips, CEO of ECigIntelligence.
“This really is the first time that the in-
dustry will have detailed independent
data from vape shops, where much of
the growth in the sector is now occur-
ring, reaching more than $1.5 billion
in annual revenue,” he explains. “As
consumer preferences evolved toward
open-system tanks and e-
liquids, we saw a need for
accurate data to help shop
owners better compete in
today’s marketplace.”
“Our results show that the
vape shop channel is primar-
ily made up of sincere, hard-
working small businesses
that contribute significantly
to the economy,” says Cynthia Cabrera,
president and executive director of SFA-
TA, noting that more than two-thirds of
respondents are single-store owners,
while 16 percent own two shops and 15
percent have three or more stores.
According to the report, nearly all
respondents (98 percent) support ap-
propriate and reasonable industry
regulations. However, 67 percent of
vape shop owners claim that state
regulations are/will be hurtful to their
businesses, despite the fact that more
than three-quarters of respondents are
overall optimistic about the current
state of the vapor industry. “Results
point to the fact that regulations are
a key concern and anything onerous,
such as the FDA’s pending final rule,
could seriously impact tens of thou-
sands of jobs, as well as jeopardize
the role vapor products play helping
smokers switch to a less harmful alter-
native,” says Cabrera.