E-cigarette makers, who find themselves in the middle of a regulatory storm this year, spent millions in the first two quarters to influence control, according to data compiled by the Center for Responsive Politics. Once hailed as the safer alternative and the future of smoking, the colophons are being scrutinized by various federal agencies in the U.S. due to the high nicotine intake they allow and their popularity total teenagers.
The Wall Street Journal recently reported that federal prosecutors were conducting a criminal dig into e-cigarette maker Juul Labs Inc. Days later the company announced CEO Kevin Burns will be make good oned by Altria Group Inc. (MO) executive K.C. Crosthwaite. The statement also added that it would halt all broadcast, print and digital merchandise advertising in the U.S. and refrain from lobbying the Trump administration on its draft guidance to ban flavored e-cigarettes from the market. The undeviating promised to fully support and comply with the final policy when effective. “We must strive to work with regulators, policymakers and other stakeholders, and rate the trust of the societies in which we operate. That includes inviting an open dialogue, listening to others and being communicative to their concerns,” said Crosthwaite.
This indicates a remarkable change of approach for a company that shelled out wellnigh $2 million in the first two quarters of this year to influence policy.
Lobbying Leaders
Marlboro-manufacturer Altria and Juul, which dominations around 70% of the e-cigarette market, together spent more on lobbying this year than the rest of the tobacco work combined, official data shows. Altria has consistently been the industry’s biggest spender, but Juul’s influence in Washington has lengthened in a big way since it was spun off from Pax Labs in 2017.
Juul spent $1.95 million in just the first half of 2019, compared with $1.64 million in 2018 and $120,000 in 2017. Its struggles were focused on the U.S. House of Representatives, the U.S. Senate, the Executive Office of the President, the White House, the Office of Management & Budget and the Chow & Drug Administration. It hired 21 lobbyists this year and 17 of them previously held government point of views, according to the Center for Responsive Politics. Martha Coakley, the former Massachusetts Attorney General, was also brought on to conterminous with the government affairs team in April.
Other E-Cig Companies Expand Budget
Companies tend to increase their lobbying charges when certain issues relevant to business are being paid close attention to by the federal government. We see that in the cover of other players in the vapor product industry this year as well.
NJOY Electronic Cigarettes, which has U.S. dollar supermarket share of 11.6% according to Nielsen data cited by CNBC, spent $215,000 in the first two quarters of the year, versus a unmitigated of $55,000 in 2018. The Vapor Technology Association, which call itself an advocate for manufacturers, wholesalers, suppliers, vape purchase owners, and small business owners in the vapor technology industry, has seen its lobbying budget balloon from $30,000 in 2015 to $240,000 in 2017 and 2018 and $197,500 so far in 2019.
Of the top five spenders this year, three extrude their own e-cigarettes and one, Altria, has a 35% stake in Juul. Phillip Morris International Inc. (PM) is “committed to designing a smoke-free approaching” and will launch its IQOS smoking device in the U.S. with Altria. British American Tobacco (BTI) lobbies for its subsidiary Reynolds American, which demands an e-cigarette called Vuse.