NEWS
HOW A SMALL BUSINESS
CAN SURVIVE REGULATIONS
The recent FDA announcement hit the US e-cigarette market with a force
far stronger than the TPD tornado that hit Europe last year. As inspiration
to small businesses reeling in its wake, here is a glimpse at the journey to
compliance by two very different British eliquid companies.
VaperCrew is a premium eliquid brand
specialising in complex flavour blends.
Founded in early 2014, the company is
renowned for flavour innovation, using only
high-quality vaping-specific flavours.
“Our approach to the TPD has always been
positive and uncompromising,” says Melissa
Morris, VaperCrew’s MD. “Despite being a
very small business, we were proactive from
the outset. To fill our knowledge gap, we
worked with Diamond Pharma Services, a
wonderful team of pharmaceutical, regulatory
and compliance consultants. Following GMP
guidelines, they helped us to upgrade our
laboratory, processes and documentation, and
were on-hand to demystify the TPD, which
was vital at a time when industry speculation
was rife.”
By March 2016, VaperCrew was in a strong
position but still faced cos tly emissions
testing, toxicological reports and notification
charges. With an uncertain post-TPD market
ahead, calculating the ROI would be nigh on
impossible. TPD compliance remained a
tall order.
Elsewhere in the industry, Lumo, a much
larger manufacturer of mono flavoured
eliquids, was keen to introduce a range of
complex blends and so instigated talks with
VaperCrew.
“We quickly realised there’s a fantastic
synergy between Lumo and VaperCrew,”
18 VAPOUROUND MAGAZINE USA
Melissa adds. “We’re both quality driven.
VaperCrew has a strong brand and a
reputation for flavour innovation; Lumo has a
powerful market position, excellent pharmagrade facilities and established distribution
channels. Together, we can deliver vapers
a much broader range of TPD compliant
products.”
VaperCrew has now licensed the brand and
flavour formulations to Lumo, exclusively for
eliquid manufacture and supply in the UK
and EU, and they will continue to collaborate
on new flavour development. So, after a
whirlwind year, what advice does Melissa
have for small manufacturers in the US, now
facing the FDA ruling?
“Don’t give up: common sense is already
prevailing in the MHRA’s implementation of
the TPD. It’s far from perfect but it’s getting
better, so the same may happen in the US.
Work together: lobby groups, industry bodies,
and collaborations on testing and toxicology
costs are all emerging in the UK, so industry
union is bound to be helpful in the US too.
“Don’t rule out anything: consider
partnerships, licences, contract manufacture,
expert consultants, international relocation,
down-sizing, OEM eliquids, sell-outs, buy-ins,
investment, crowd funding, joint ventures –
anything and everything! Start now: with your
consumers’ needs at heart and a clear vision
in mind, take one step at a time. Go for it!”