TOP NEWS: BAT Pleased As US Shies Away From Full Vaping Ban

(Alliance News) - British American Tobacco PLC on Friday welcomed a move by US regulators to ban ...

Alliance News 3 January, 2020 | 7:43AM
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(Alliance News) - British American Tobacco PLC on Friday welcomed a move by US regulators to ban a number of e-cigarette products.

The US Food & Drug Administration said cartridge-based e-cigarettes in flavours other than tobacco or menthol will become illegal unless specifically authorised by the government.

However, in September the White House had promised a full ban, but this was scuppered by industry pressure.

The change will take effect in early February, outlawing cartridges with fruit, mint and candy flavours, which are particularly popular with young people. The ban will exempt large, tank-based rechargeable vaping devices, however, which are primarily sold in vape shops that cater to adults.

"Yesterday's announcement takes us a step closer to a predictable regulatory environment in a key marketplace, but focus must now shift to enforcement to ensure vapour market regulations are effective," said BAT Chief Executive Jack Bowles.

"We have long said it is not the marketing of these products per se that is the concern, it is the irresponsible marketing of them that should be robustly addressed. For us, smart regulatory frameworks partnered with responsible marketing and appropriate enforcement will ensure the sustainability of adult consumer choice across all categories," Bowles added.

BAT said the FDA move shows vaping remains a credible alternative to smoking, and welcomed the clarity the new ruling gives.

BAT has already submitted one brand application for vaping products, and has several more lined up before the deadline of May this year.

"We will continue to work with the US FDA throughout the implementation of this new regulatory framework to make sure consumers have access to quality-assured products whilst doing our utmost to ensure that vaping remains positioned as a credible option for smokers looking for an alternative to tobacco," added CEO Bowles.

Shares were 0.1% higher in Johannesburg at ZAR603.78 early Friday. The London market is not yet open.

By George Collard; georgecollard@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
British American Tobacco PLC 2,856.50 GBX 3.53

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