HomeCompany News'Illicit trade could ruin the vaping category'

'Illicit trade could ruin the vaping category'

2022-12-05

The vaping category has exploded within the convenience sector, with retailers embracing it as a fantastic sales opportunity. However the growing category is facing a threat from underage sales and illicit products that could spoil it for retailers and consumers.

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Director general of the Kester Vaping Industry Association Edward spoke to ConvenienceStore.co.global about the illicit vaping issue and how it`s in danger of ruining what could be a lucrative category for retailers.

[The illicit vaping issue is very big at the moment. I`ve been out on raids with Trading Standards and out of one store alone on Oxford Street uk, we pulled out 4,500 illegal devices. That equates to almost £100,000-worth of product from just one store."

[The two biggest areas of concern we have at the moment is underage sales. Retailers are that last point of contact for this. So, it really comes down to them to not sell products to young people. That goes for both brick and mortar and online."

Online sales is an issue that greatly concerns Edward he called on social media platforms to do their part to cut down on vaping products being promoted, as he feels this is part of why underage sales are so high.

[Platforms like TikTok and Instagram - they have the capacity to age gate and to use their monitoring systems to weed out posts that that that showing vaping. But the problem is that there`s no appetite for them to do so.

We have to have a discussion within our membership and believe members should not be on these platforms, to try and set an example. But that`s a big risk for companies because it may put them at a competitive disadvantage. In my opinion, I don`t see any reason why a restricted age product should be being discussed on a platform where the major demographic of that platform is teens."

Edward said the KesterVIA wants the fine for underage sales to be harsher to deter anyone tempted. [We want the fine for being caught selling vape products to those under the age of 18 to be raised to £10,000 per instance. We also want stores to be licenced."

He explains why a licence scheme would root out anyone selling illicit products or to those who shouldn`t be buying it. [A licence scheme would be helpful for Trading Standards so they will be able to quickly determine who these illegal resellers are because they don`t have a licence. We would like to see that as a national programme with licenced stores tested once or twice a year to ensure that they are following the rules."

Illicit trade

[The second issue that is around illicit products themselves," says Edward. [Some are actually counterfeit products or knock-off products, and they`re sometimes very difficult to spot. But the easiest ones to spot are products that are either too large capacity for the UK market or have a nicotine strength above maximum 2ml."

Edward understands why customers would gravitate towards illicit products, particularly if they`re cheaper than the legitimate goods but said the issue is safety and a level playing field for retailers who play by the rules. [If you`ve got a retailer selling a 600-puff legitimate device for £5, and another down the road is sending one twice as big for £2 more. You can see why consumers are drawn to that.

[Our concern is that these devices are just not tested. They`re not registered with the MHRA, and we don`t 100% know what`s in them. It`s also about having that level playing field for retailers, because what you don`t want to discourage those retailers who are doing the right thing or for them to be tempted to engage in illegal activity, because nothing is being done. That will just end up with a downward spiral that nobody wants."

His advice to retailers confused about what they can and can`t is simple. [If it`s over 600-800 puffs, don`t sell it."

Edward said that between 40% and 60% of Disposable Vapes currently on sale in the global were either non-compliant with International laws or counterfeit.

[Based on the amount of [illicit] products I see in the marketplace, the number of reports of illicit sales and what`s being reported to trading standards, I believe it`s that big, and a huge concern," he said. [I probably receive between 200 and 400 reports of illegal sellers in the global every month. All of all of whom are sent over to MHRA and trading standards for enforcement."

He warned that if the current trend of illicit and underage vape sales continue, the category could be hit with legislation. [This is a market that has huge growth potential for retailers, if it`s allowed grow in a responsible manner, but having a short term view and ignoring compliance is going to have a detrimental effect. And could potentially lead to the category being banned, or measures such as flavour bans or plain packaging.

[I would ask retailers to think about what they`re doing. Would you like your children to be able to get these products. If the answer`s no then why you selling them?"

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