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Healthvaping

A major nicotine company went through New Yorkers’ thrown-out vapes and found that 99% were illegally imported from China

By
Eva Roytburg
Eva Roytburg
Fellow, News
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By
Eva Roytburg
Eva Roytburg
Fellow, News
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May 30, 2024, 10:17 AM ET
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AleksandrYu—Getty Images
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Nearly every vape that New Yorkers use—then throw out—is an illegally imported flavored vape from China, according to a study commissioned by Altria, the second largest tobacco company in the U.S.

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WSPM, the market intelligence company Altria contracted to complete the study, analyzed empty vape products discarded in 100 different locations across New York City’s boroughs. 

Between Feb. 1 and March 21 of this year, collectors found 2,000 discarded vape packages. Of these vapes, 99% were imported from China, and 99% were flavored disposables, which New York banned in 2020 for their appeal to children and young adults. 

The study underscores the extent to which Chinese vape companies have flouted regulations and dominated the nation’s $7 billion vaping market, David Sutton, a spokesperson for Altria, said. 

Vape brands “cited as most popular with kids” have flooded New York, Sutton wrote in a statement. “We strongly support greater enforcement efforts in New York to get these illicit products out of the market.”

While a spokesperson for New York Gov. Kathy Hochul said they “take this issue seriously,” they also pointed to state Department of Health data that showed a decline of New York high schoolers vaping from 2018 to 2022. 

Additionally, last weekend, the New York City’s Sheriff Office and the NYPD “tackled a major distributor” with millions of dollars’ worth of illegal vape products, a spokesperson for New York City Mayor Eric Adams said. 

“We are facing an epidemic of e-cigarette and vape use among young people, and we will not stand by while manufacturers and wholesalers supply our city with illegal, harmful products that target our most vulnerable New Yorkers—children,” the spokesperson wrote in an email to Fortune. 

The U.S. Federal Food and Drug Administration (FDA) has authorized the marketing of only 23 tobacco-flavored e-cigarette products and devices; Altria’s NJOY vapes have made this coveted group. However, these FDA-authorized products are deeply unpopular, making up just 2.4% of 2023’s vape sales. 

Altria appears to be feeling the hit. Last year, the corporation sued 34 foreign and domestic vape manufacturers to retain damages for “unfair competition,” calling on the FDA to enforce its own rules. 

An FDA spokesperson would not answer specific questions about its enforcement. However, they said the agency is taking action against those “across the supply chain,” including manufacturers, importers, distributors, and retailers. 

The FDA has issued import alerts on several Chinese tobacco companies, such as iMiracle Shenzen Technology, which manufactures the popular vape brands ElfBar, EBCreate, and Lost Mary. An import alert allows the FDA’s field staff to detain certain products without physically examining them. 

Last December, the FDA announced the first seizure of iMiracle products, obtaining and destroying $18 million worth of flavored vapes. However, the company has repeatedly dodged customs by changing the name of its Elf Bar, importing products worth hundreds of millions of dollars. 

A different kind of illicit Chinese vape “bar”—an Air Bar—dominated the New York City study. 50% of the vapes found in Big Apple trash cans were Air Bar products, including flavors such as “pink lemonade” and “blue razz ice.”

The director of compliance for Air Bar, Quentin Brunel, confirmed the company was based in China, but would not comment on the study.  

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
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By Eva RoytburgFellow, News
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Eva covers macroeconomics, market-moving news, and the forces shaping the global economy.

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