E-Cigarette Companies Shift Operations Offshore to Bypass FDA Regulations, Including Lost Mary and Elfbar Brands

Feb.25.2025
E-Cigarette Companies Shift Operations Offshore to Bypass FDA Regulations, Including Lost Mary and Elfbar Brands
Reuters reports that some e-cigarette companies have shifted operations offshore to bypass U.S. regulations. Heaven Gifts moved its Lost Mary brand to a British Virgin Islands firm after the FDA banned Elfbar in 2023, while Ludicrous Distro began distributing unauthorized third-party products. The FDA has denied millions of licenses for new nicotine devices, particularly flavored vapes that appeal to teenagers. Despite bans, brands like Elfbar continue to be popular among youth vapers in the U.S

According to Reuters, several e-cigarette companies targeted by U.S. authorities have adapted their business strategies to bypass regulations, including shifting operations to offshore firms. This move has made it more difficult for the U.S. Food and Drug Administration (FDA) to prevent the importation of unauthorized vapes into the country. The FDA has been closely monitoring these changes, which include companies altering product labels or restructuring their businesses to avoid detection. However, the FDA did not specify which brands or companies were involved.

 

One notable example is the Chinese vape giant Heaven Gifts, which transferred its U.S. operations for its Lost Mary brand to a British Virgin Islands (BVI) company, Wonder Ladies Limited. This shift occurred after the FDA banned several companies, including those based in China, the U.S., and South Korea, from importing its flagship Elfbar brand in 2023. Despite the ban on Elfbar, Lost Mary remains available for sale in the U.S., signaling that the product is still being distributed despite not having FDA authorization.

 

Similarly, Ludicrous Distro, a Texas-based e-cigarette firm operating under the name American Vape Company, stopped selling its own unlicensed Esco Bars brand. Instead, the company began distributing a wider range of unauthorized vaping devices from third-party manufacturers. The company’s website reflects this change in focus.

 

Heaven Gifts’ spokesperson, Jacques Li, stated that the company had exited the U.S. market for its Lost Mary brand by transferring operations to Wonder Ladies, following the FDA’s ban on Elfbar. Li emphasized that the company was not attempting to circumvent FDA regulations, despite the move.

 

Ludicrous Distro, when asked about its decision to sell unauthorized products, did not provide a clear explanation. However, the company explained that it has always aimed to comply with the FDA’s evolving policies, which have created confusion in the industry.

 

The FDA has denied licenses for approximately 26 million new nicotine devices since October 2020, particularly targeting fruit and candy-flavored vapes, which the agency claims appeal to teenagers. The growing popularity of unauthorized products, such as Elfbar, has led to increasing concerns about youth vaping, with Elfbar becoming one of the most widely used brands among young vapers in the U.S. in 2024.

UK Reform Party Proposes Cap of 1,000 Vape Shops Under Plan to Tighten Retail Controls
UK Reform Party Proposes Cap of 1,000 Vape Shops Under Plan to Tighten Retail Controls
The UK Reform Party has proposed limiting the number of dedicated vape shops in the country to around 1,000 as part of a plan to tighten oversight of vape retail channels. The proposal was put forward by Reform UK deputy leader and MP Lee Anderson. The plan remains a political proposal and has not become UK government policy, with no detailed legislation, implementation timeline or allocation rules announced.
Aug.10
2Firsts On-Site | CTIHK Showcases Nicotine Pouches, Heated Tobacco and Chinese Cigars at InterTabac 2026
2Firsts On-Site | CTIHK Showcases Nicotine Pouches, Heated Tobacco and Chinese Cigars at InterTabac 2026
At InterTabac 2026 in Dortmund, China Tobacco International (HK) Company Limited (CTIHK) is exhibiting across two separate booths in Hall 5 and Hall 4. Products observed by 2Firsts include heated tobacco products, nicotine pouches, Chinese cigars and tobacco leaf. Nicotine pouch products on display include TOOP, Shuangxi and Ashima.
Market
Sep.16
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
KT&G announced on Aug. 13, 2026, that it has opened “lil Archive,” a brand exhibition space in Seoul showcasing the evolution, technology platforms and future direction of its heated tobacco brand lil since its launch in 2017. KT&G said lil now spans three major platforms — lil SOLID, lil HYBRID and lil AIBLE — with more than 30 dedicated consumables, and held a 48% share of South Korea's heated tobacco market in the second quarter of 2026. The opening comes as lil enters its 10th year, with KT&G continuing to position the brand for expansion beyond its domestic market.
Aug.14
FDA Grants PMTA Authorization to 11 ZYN ULTRA Nicotine Pouches, Bringing Total Authorized Pouches to 43
FDA Grants PMTA Authorization to 11 ZYN ULTRA Nicotine Pouches, Bringing Total Authorized Pouches to 43
The U.S. Food and Drug Administration authorized 11 ZYN ULTRA nicotine pouch products made by Swedish Match USA through the premarket tobacco product application pathway on August 21, 2026. Ten of the authorized products have a labeled nicotine content of 9 mg, while ZYN ULTRA Smooth was authorized at 11 mg. The reviews were conducted through FDA’s nicotine pouch PMTA pilot program. FDA has now authorized 43 nicotine pouch products, including 23 through the pilot.
Aug.24
Imperial Brands Plans Thousands of Job Cuts Across U.S. and Europe in Cost Restructuring
Imperial Brands Plans Thousands of Job Cuts Across U.S. and Europe in Cost Restructuring
According to Reuters, citing Bloomberg News, British tobacco company Imperial Brands PLC plans to cut thousands of jobs across the United States and Europe as part of a cost reduction and organizational restructuring effort. The announcement drew market attention to the company’s shares. The move comes as global tobacco companies continue adjusting their operations amid slower cigarette market growth, changing consumer preferences and the transition toward next-generation nicotine products.
Aug.11
Germany's Four-Year Tobacco Tax Plan Heads to Parliament as BAT, JTI and PMI Push for Changes
Germany's Four-Year Tobacco Tax Plan Heads to Parliament as BAT, JTI and PMI Push for Changes
Germany's parliament is scheduled to hold a first reading of amendments to the Tobacco Tax Act on September 24. The government plans annual tax increases from 2027 through 2030 covering cigarettes, heated tobacco, vaping liquids and other categories. It expects the reform to generate €756 million in additional revenue in 2027, rising to €3.589 billion in additional annual revenue by 2030. Ahead of the parliamentary debate, the German Association of the Tobacco Industry and Novel Products, or BVTE, launched the "Tabaksteuer mit Augenmaß" campaign backed by BAT, JTI, Philip Morris, Reemtsma and wholesale and retail groups.
Sep.23