Will 'closed-system' vaping get by the FDA regs?


#1

I’ve noticed a surge of ‘closed-system’ and almost-closed-system devices coming to market and am wondering if these companies are seeing them as a way to skirt the FDA regs ? Why would they think that ? Will brands like Vuse, Blu, V2, Juul (I am seeing alot of newer and start-up devices besides the ones mentioned, as well) pass these regs better for some reason, in comparison to other mods ? Should vape stores start stocking up on all these new ‘pod’ and ‘cartridge’ devices?


#2

There are two reasons why I think closed systems will become more popular and survive the FDA regs.

And, there’s one product that exemplifies both reasons - Phillip Morris’ iQOS.

  1. Even thought it’s a vape product made for all the wrong reasons (i.e. it STILL HAS tobacco in it…), the sheer 800 pound gorilla behind it will make sure it gets approved. They are already in the process of getting it approved as a “Modified Risk Tobacco Product”, and it’s already on sale in Europe. People that want to quit but are not familiar with vaping are more likely to convert to that first. On top of that (from the Vaping 360 article), “Philip Morris has invested more than $3 billion in the research and development of ‘reduced risk’ alternatives to cigarettes.” PMI will make sure it gets approved and that it gets market share through convenience stores.

  2. From a business perspective, closed-tank systems are much more profitable than open tank systems. That’s because (as we all know) the real money is in the juice, not the hardware.

Sony Playstation loses money on every single PS4, but they make it up in the back end through the Playstation store. Same thing with Apple, Gillette shavers, etc…

I believe I heard that Phillip Morris has a program that pays $100 for people to convert to the iQOS in Europe.

When the regs crush the ability for small time manufacturers and juice makers to quickly enter the market, the closed tank system will be the most profitable option.


#3

All indications are probably-maybe. The FDA is anti almost anything related to vape, but a closed system that can be monitored, regulated and have failsafes built in, will probably pass their approval.