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 Donald Trump’s surprise election victory in November, and his
pledges to reduce federal regulations on business, led tobacco lobby
groups to draft a new plan of action, according to company
executives, lobbyists and consultants interviewed by Reuters.
The immediate goal is to delay implementation of new regulations on
the latest generation of e-cigarettes and other vaping devices,
which produce a vapor from liquid nicotine rather than burning
tobacco.
Longer-term, they are setting their sights on repealing the 2016 law
that treats these devices like cigarettes.
Lobbyists describe a cautious optimism as they approach lawmakers
with their plans for products that they say can help traditional
smokers quit and avoid the known dangers of tobacco. With U.S. sales
of conventional cigarettes shrinking, Big Tobacco has made a major
bet in recent years to dominate the e-cigarette industry.
On Tuesday, British American Tobacco Plc announced a $49-billion
deal to take over rival Reynolds American Inc, uniting two major
e-cigarette players in the United States and United Kingdom and
becoming a bigger competitor to Philip Morris International Inc and
U.S. partner Altria Group.
“Suddenly things that were not conceivable became something we
thought we could do,” said Cynthia Cabrera, former president and
executive director for the Smoke-Free Alternatives Trade Association
(SFATA). Cabrera now has her own industry consulting firm, the
Cating Group.
In 2009, Congress allowed the U.S. Food and Drug Administration to
extend its oversight to all tobacco products. New regulations took
effect last August that brought e-cigarettes, cigars, pipe tobacco
and hookah tobacco in line with existing rules for cigarettes and
smokeless tobacco. They require companies to submit e-cigarettes and
other newer tobacco products for government approval, list their
ingredients and place health warnings on packages and in
advertisements.
Health advocacy groups hailed the regulations as the potential
health risks and benefits of e-cigarettes are still being studied.
Industry officials said they would hurt small companies and cripple
development. Opponents said the rule was especially unfair because
it would apply to any products introduced after Feb. 2007, meaning
that most e-cigarettes now on the market would require regulatory
review.
On Tuesday, a coalition of 13 organizations, including
libertarian-oriented tech groups, asked Congress to grandfather all
products introduced by August 2016, when the rules took effect.
“The FDA’s regulations threaten to kill an industry that has created
tens of thousands of jobs by producing safer products that help many
Americans quit smoking,” the letter to Senate Majority leader Mitch
McConnell and House Speaker Paul Ryan said.
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Representative Tom Cole of Oklahoma wrote to incoming Vice President
Mike Pence this month asking that all FDA deadlines on new tobacco
products be delayed by a year as their fate is determined.
Public health advocates say they plan to fight any changes to the
Tobacco Control Act, warning that fewer restrictions on e-cigarettes
could hook a new generation on nicotine after years of efforts to
prevent kids from smoking.
“We know e-cigarettes are the most commonly used tobacco product
among kids,” said Erika Sward, assistant vice president, National
Advocacy for the American Lung Association, noting the appeal of
flavored nicotine liquids used in the devices.
BAT makes the popular Vype brand in Europe, while Reynolds owns Vuse,
the top selling brand in the United States. They have already
collaborated on technology and licensing, but their merger is
expected to speed up and simply innovation.
“Consumers are looking for alternatives that have the potential to
reduce harm,” said Susan M. Cameron, executive chairman of Reynolds
American’s board of directors.
Philip Morris and Altria aim to launch a promising, new technology
called iQOS that heats tobacco but does not burn it, potentially
preserving the qualities that smokers want with fewer health risks.
The company submitted the product for FDA review in December.
“There is a much higher level of hope and a general belief that a
new administration would be willing to take a new look and consider
a harm reduction rather than abstinence only approach to nicotine,”
said Michael Hogan, a lobbyist who represents the vaping industry at
the Alpine Group.
(Reporting By Jilian Mincer; Editing by Michele Gershberg and Nick
Zieminski)
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