According to an article in the New Zealand online magazine The Spinoff, new regulations regarding disposable e-cigarettes are about to be implemented in New Zealand. As a result, retailers of e-cigarettes are getting ready for another blow to their disposable product lines. One retailer even mentioned that they may have to dispose of 300,000 units by sending them to a landfill.
More than 600 specialized e-cigarette stores nationwide may have to discard as many as 10 million devices. However, environmental and health advocates argue that the difficult efforts made by New Zealand to remove these products from shelves will be worthwhile.
The operator of The Vape Shop, Morris Lazootin, has described the upcoming regulations as a "real challenge". He revealed that the retailer may face difficulties in dealing with over 300,000 previously compliant e-cigarette devices, amounting to a total inventory value of $7 million.
New regulations will result in the prohibition of disposable or single-use devices unless they meet the new requirements. Additionally, e-cigarette devices must now have removable batteries, features for child safety, and reduced nicotine content. As a result, a significant number of e-cigarette devices are currently being sold as quickly as possible before the ban takes effect, causing concerns about consumer stockpiling.
Jonathan Devery, the chairman of the New Zealand E-cigarette Industry Association, has also issued a warning that some e-cigarette products may not be cleared for sale before December 21st. The new nicotine content restrictions do not only apply to e-cigarettes.
The president of the anti-smoking organization AsH also expressed concern that this could lead people back into the embrace of traditional cigarettes.
Popular merchants have been sending emails to customers in recent weeks offering promotions such as "buy one get one free," half-price products, and free disposable e-cigarettes with a specified minimum purchase amount.
The New Zealand government's complete ban has pushed e-cigarettes to the fringes of legitimate business, potentially fueling the black market. In Australia, e-cigarettes require a prescription for purchase and the market is also concerned that the demand for this already sidelined smoking alternative will be driven underground.
What will happen to the unsold inventory after the 21st?
One possible choice is to transport the banned products overseas for sales. E-cigarette distributor, Vapo, has existing sales channels to Australia, but not all manufacturers can do the same.
Lazootin from The Vape Shop has expressed that he is facing significant obstacles as many of their inventory products are produced to meet "very specific" regulatory standards implemented in 2021. He further mentions that "this unique compliance makes them unsuitable for sale in other international markets.
If e-cigarettes are not handled properly after the ban takes effect, this would be a "problem".
The new government has indicated plans to further decrease New Zealand's e-cigarette usage, ultimately reducing waste. In May of this year, Christopher Luxon proposed that New Zealand might follow Australia's lead in completely banning recreational e-cigarettes.
The industry is closely monitoring the important issue of how businesses will handle e-cigarette products that are expected to be unsaleable after December 21st.
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