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TOBACCO BUSINESS
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Like many vaping enthusiasts, Jan Verleur has always
been a tireless advocate for his industry. He spearhead-
ed the launch of the SFATA trade association and is
now a supporting member of the more recently formed
Vapor Technology Association (VTA). He plays an ac-
tive role in representing the vapor community in the
media and he continues to push for relief from onerous
industry regulation. But he’s also a businessman who
knows how to navigate changes in both the marketplace
and the regulatory environment. So it came as little
surprise that when the deeming regulation were finally
released in May of 2010, he was a man with a plan.
Like many in the industry, Verleur paved the way for
the company to operate in the aftermath by bringing
150 prototypes to market before the August 8 deadline
(more on that later). He also moved swiftly in a new
direction. “We recently launched a secondary brand
called Prohibited that’s more centric to the cannabis
space,” he told
TB
recently. “One of the reasons we
chose to work in that realm is because our primary
market, domestic nicotine-based products and e-liq-
uids, is facing enormous regulatory challenges, but the
cannabis side is regulation-free. We decided it was a
good time to enter that space with a new brand.”
The company plans a family of products for its new
Prohibited line, which has the tag line “One nation un-
der the influence,” all of which are devices for vaping
leaves and wax concentrates rather than products con-
taining the herb itself. Also, mindful that the legality
of cannabis still varies dramatically state by state, the
company plans to forego Internet distribution—which
accounts for the bulk of its profits with its V2 e-ciga-
rettes and V2 Pro multi-function vaping devices—with
Prohibited. “Prohibited is business-to-business (B2B)
only, since the product is targeted for states that have
legalized medicinal or recreational marijuana,” says
Verleur, who adds that the line was designed and will
be marketed as a separate and distinct brand to protect
it from regulation as a tobacco product by the FDA.
“If I were to launch a loose-leaf product under the V2
brand, you could make an argument [for FDA regula-
tion] because V2 is an established nicotine brand and
that market accounts for the majority of our revenue,”
says Verleur, who acknowledges that the FDA may still
take issue with vaping devices marketed for cannabis.
“There is always the concern that the FDA might over-
reach in that regard, but we feel we are on strong legal
ground as it regards to Prohibited.”
The first Prohibited product, called the 5
th
Degree
and set to launch in April, will be usable with cannabis
in wax, concentrate and flower form. Four additional
products are planned for the line, 1
st
Degree, 2
nd
De-