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.

China Further Tightens E-Cigarette Capacity and Investment Controls, Supply Chain Faces Stronger Regulation and Accelerated Shakeout
China Further Tightens E-Cigarette Capacity and Investment Controls, Supply Chain Faces Stronger Regulation and Accelerated Shakeout
China is tightening controls over e-cigarette production capacity and investment as regulators move to curb disorderly competition and address oversupply risks, a new policy framework released on December 25 shows, signaling stronger oversight and a faster shakeout across the country’s e-cigarette supply chain, according to first-hand reporting by 2Firsts.
Dec.25
Georgia Lawmakers Push School Safety Bills Targeting Phones, Vaping and Firearm Safety Education
Georgia Lawmakers Push School Safety Bills Targeting Phones, Vaping and Firearm Safety Education
Georgia lawmakers are weighing new education bills that would tighten classroom phone rules, introduce firearm safety education from an early age, and require vape detectors in all high schools. Supporters argue the measures are needed to address mounting concerns around student safety, mental health and the growing presence of vaping on campuses.
Jan.26 by 2FIRSTS.ai
New York’s budget plan would apply a 75% wholesale tax to nicotine pouches, raising projected revenue
New York’s budget plan would apply a 75% wholesale tax to nicotine pouches, raising projected revenue
New York Gov. Kathy Hochul is proposing to tax ZYN nicotine pouches and other nicotine products at the same rate as cigarettes, applying a 75% wholesale tax under her proposed $260 billion state budget.
Jan.21 by 2FIRSTS.ai
BAT’s Vuse Ultra listed as GOOD DESIGN Awards winner; features app connectivity and adjustable intensity
BAT’s Vuse Ultra listed as GOOD DESIGN Awards winner; features app connectivity and adjustable intensity
British American Tobacco’s (BAT) Vuse Ultra vaping product has been listed among winners on the U.S. GOOD DESIGN Awards website, in the “Personal Experience” category, according to the project page. The page identifies the award year as 2025 and names BAT (London) as both the entrant and the manufacturer.
Jan.20 by 2FIRSTS.ai
IQOS Partners with Mexico’s Zamna Festival; PMI Says Adult User Base Tops 140,000
IQOS Partners with Mexico’s Zamna Festival; PMI Says Adult User Base Tops 140,000
Philip Morris International (PMI) said IQOS, via its “IQOS Curious X” platform, has entered a global partnership with the Zamna music festival in Tulum, Mexico, with the collaboration making its on-site debut during Zamna 2026 and targeting adult nicotine users. PMI said IQOS has more than 34 million users worldwide, while the number of adult consumers in Mexico has surpassed 140,000.
Jan.15 by 2FIRSTS.ai
2Firsts Interview | Bengt Wiberg: Why the Oral Health Risks of Nicotine Pouches Merit Further Study
2Firsts Interview | Bengt Wiberg: Why the Oral Health Risks of Nicotine Pouches Merit Further Study
As nicotine pouches gain global traction as a lower-risk alternative to smoking, questions are emerging about their potential oral health effects. In a 2Firsts interview, Stingfree AB founder Bengt Wiberg discusses why gum irritation and oral lesions warrant closer scrutiny within the broader framework of tobacco harm reduction.
Jan.06