As part of Responsible Retailing Week 2023, we speak to the managing director of vape supplier Phoenix 2 Retail Chris Kelly about the challenges facing the sector and how it is supporting retailers.
The vape category is under extreme focus right now - the government has just launched a consultation on vaping that focuses on youth access and sustainability but proposals of a ban on single-use vapes could see the category’s recent explosion fizzle out while possibly also fuelling the black market.
There is significant pressure on the supply chain to do what’s right, and legimate suppliers face being tarred with the same brush as the ones that don’t care about compliance or who’s hands the product ends up in. This has led to businesses like Phoenix 2 Retail taking matters into their own hands.
According to Kelly, the main challenge for retailers is clear – ensuring a legitimate supply chain. “Taking essential measures to ensure that retailers are procuring vape products from authorised sources. Retailers need guarantees that wholesalers can provide compliant reporting that meets the standards set by the MHRA and that pre/post-market testing is conducted.”
“Once the products are in stores, we are making sure that retailers have the appropriate Point of Sale (POS) system that adheres to Challenge 25 guidelines and that an age-gating process is implemented. Furthermore, introducing an in-store solution for recycling vapes.”
He explains that this is not always easy for retailers. “The most common obstacle that retailers have to overcome when it comes to responsible retailing is education around understanding what a non-compliant product is, what to look out for on packaging, etc. It is also essential for retailers to ensure that their suppliers are compliant with MHRA standards to maintain responsible retailing practices.”
Education is one thing but there are some retailers who know that they are breaking the law, Kelly says that there is no tolerance from Phoenix 2 Retail for retailers looking for illicit products.
“If a retailer were to ask us for non-compliant products, we would immediately inform them that it is unethical and illegal to sell such products. Our goal is to promote responsible retailing practices and provide accurate information to retailers and consumers alike.”
He said there are key pointers for retailers to look out for. “Educating retailers about what to look for when buying vape devices is crucial in promoting responsible retailing practices. Retailers need to understand the features of compliant devices, such as having a maximum tank capacity of 2ml, a child-resistant and tamper-evident filling mechanism, and complying with labelling requirements. Retailers can also educate themselves on the latest regulations and guidance from the MHRA and other relevant authorities in order to stay up to date on responsible retailing practices. By providing this education in stores and online, retailers can help ensure the safety of their customers and promote responsible vaping practices.”
Stronger penalties needed
While Trading Standards is cracking down on retailers selling illicit produce, there’s a lot more to be done. Kelly feels there should be more of a deterrent for those involved in illegal practices. “The penalties for selling vapes to underage consumers should reflect the seriousness of the matter, particularly in cases of repeat offending,” he says. “Similar to alcohol fines, stricter penalties could act as a deterrent and encourage retailers to prioritise responsible retailing practices.”
He does make it clear that some retailers may need support to stay on the right side of the law. “However, it is also important to acknowledge that many retailers may require support and education in order to comply with regulations and avoid inadvertently selling to underage customers. Vaping is still a relatively new category in convenience stores, and retailers may not have the same level of experience as they do with other products. By providing education and support to retailers, we can help ensure that they are equipped to meet their responsibilities when dealing with underage consumers.”
What does this education look like and who is providing it to retailers. “Phoenix 2 Retail has agreed to a long-term partnership with Serve Legal - the market-leading provider of ID and compliance testing services in the UK & Ireland, to protect against underage sales, enhance retailer education and improve performance and compliance for retailers. So far there have been over 10,000 visits across the UK FMCG landscape allowing us to support retailers with education, compliance and high-quality, accurate age verification testing programmes. We have grown and taken a position as one of the leaders in the supply of FMCG vaping products, we see ID compliance, youth access management and category compliance as a responsibility that we need to lead by example. Working with Serve Legal is the next step forward in meeting our commitments to one of the fastest-growing FMCG categories.”
As well as the issue of illicit product, there’s also a big challenge around age-related sales and products allegedly being marketed to children, Kelly feels that the rules need to be stricter to avoid marketing the products to children, to the point that Phoenix 2 Retail doesn’t stock flavours that could tempt those under-age.
“We understand the challenge around age-related sales and products allegedly being marketed to children. To address this issue, we feel there should be much stricter rules around advertising and posting on social media platforms that appeal to an under aage audience and explore packaging and designs that are more in line with the target audience - adult smokers looking to quit. While flavours play an important part in the switching process, we have made the decision to not supply flavours that could appeal to under age consumers to grocers. We believe that there are enough flavours available to cater to consumers’ needs.”
The self-enforcement doesn’t stop there. “We will only list brands and products that have completed and passed our Pre-2-Post Marketing Compliance Testing program. We are committed to ensuring the safety and well-being of all our customers, and we believe these measures will help us achieve that goal.”
In the past month, the government has set the vape category in its sights, with consultations launched to tackle the issue of single-use vapes. For the blossoming vape category, a ban on single-use vapes could be disastrous, for more than one reason. “We welcome a consultation on disposables as it’s key that the industry gets the opportunity to highlight the benefits, and therefore continued need, for single-use vapes as a smoking cessation method.
However he’s clear that some suggestions will not work. “A ban is not the answer. Some 220 people die from smoking every day, 365 days a year. Disposables have proved to be highly effective in helping smokers quit their habits due to their ease of use, accessibility and low entry price points. They are one of the main reasons why the number of adult smokers in Great Britain has hit record lows for the last two years, according to the Office for National Statistics. We have been working closely with brands and governing bodies, introducing Pre 2 Post Market Compliance testing and UK-wide recycling 360 solutions in a bid to help protect the future of the vaping category in the FMCG sector.”
Kelly is not naïve about government action though and calls on the sector to work with the proposals to ensure a fair outcome. “Regulation is an eventuality we are facing within the category, and it’s vital that we engage with government, regulators and trade bodies on how we support change without impacting our core mission of helping adult smokers switch from combustible cigarettes.”
Sustainability efforts
The sustainability of single-use vapes has become a major issue, with research from environmental campaign group Material Focus revealing that five million disposable vapes are thrown away every week. Kelly acknowledges the scale of the problem and explains what Phoenix 2 Retail is doing to help.
“We know everyone sees the colossal impact single-use vapes have on the environment, which is why we have been working on a 360-degree recycling solution for retailers for several months. Phoenix 2 Retail is set to roll out over 200 recycling units this month, followed by a further 5,000 units by the end of the year, subject to retailer agreements. We aim to reach all 15,000 retailers by the following year, ensuring at least one recycling unit per store. This step is part of our company’s ongoing efforts to tackle the issue of improper vape disposal.
”By providing these recycling units, we seek to encourage vapers to dispose of their single-use vapes in an environmentally friendly manner. We believe that by making recycling units accessible and convenient, more vapers will be willing to recycle their vapes properly. Phoenix 2 Retail has partnered with a registered waste management company to ensure the proper disposal of the collected vapes.”
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