London (Parliament Politic Magazine) – SKE, a Chinese government-affiliated entity, has witnessed swift upsurge in the sales of their Crystal Bar disposable vape products within the UK. These products have garnered criticism for their apparent appeal to minors.
In an exclusive interview, SKE’s Marketing Director, Serge Davies, explained that the decision to suspend the accounts was made for a comprehensive evaluation.
SKE also issued an apology for not enrolling in government-endorsed recycling initiatives.
The presence of Crystal Bar disposable vapes has become ubiquitous within the UK, being available in supermarkets, newsstands, and specialized vape stores.
Vaping Diversity: Contrasting Regulations and Flavors
Engineered to provide a limited number of nicotine-infused puffs before disposal, the popularity of disposable vapes has surged remarkably in recent times. SKE, a Chinese company partially owned by the state, has now emerged as the second-largest vape distributor in the UK, as per fresh statistics furnished by data provider NielsenIQ.
Their sales have exceeded 30 million units in the past year alone. However, these figures exclude independent retailers and vape shops, indicating that SKE’s actual sales might surpass 100 million units.
The strategy of distributing complimentary product samples has played a pivotal role in their ascent. Just last month, they organized an online giveaway on the Discord instant messaging platform, which was publicized through their Instagram account. Discord originated as a gaming platform and continues to host a substantial user base under the age of 18.
Recycling Challenges
Disposable vapes encompass electronic components, including a compact battery, which pose intricate and costly recycling challenges. Abandoned vape devices have become a prevalent eyesore, prompting local councils to advocate for their prohibition.
In alignment with regulations applicable to all producers of electronic products, vape companies bear the legal responsibility of enrolling in recycling initiatives. These schemes entail producers contributing to the expenses associated with recycling efforts.
Until the present month, SKE had refrained from participating in these initiatives and had not fulfilled the required contributions, estimated to be around £100,000.
Mr. Davies acknowledged this shortcoming and attributed it to a “communication issue,” expressing the company’s regret for the oversight. He stated, “We appreciate your bringing this to our attention, and we have taken steps to join the relevant schemes.”
Sustained Growth Amidst Uncertainty: SKE’s Expansion Plans
SKE recently established a UK-based subsidiary, as documented in the records of Companies House. These records reveal that the Shanghai State-owned Assets Supervision And Administration Commission (SASAC) maintains “significant control” over the subsidiary. SASAC manages investments on behalf of the Chinese government.
Shenzhen Yinghe Technology Co owns SKE, with its largest stakeholder being Shanghai Electric Co. The latter is itself over 50% owned by entities affiliated with the Chinese state, as detailed in its annual report.
Yinghe, in a report to its shareholders the previous year, disclosed that it had fallen short of its vape sales targets due to a governmental crackdown in China. Consequently, it was redirecting its efforts towards international expansion to bridge the gap. Presently, the UK stands as its largest market within Europe.
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Adult Appeal: SKE’s Defense of Gummy Bear Flavor
Within China’s confines, exclusively tobacco or menthol-flavored vaping products are sanctioned. In stark contrast, SKE, operating in the UK, offers an array of flavors that captivate the senses. During the Discord giveaway, the correspondents were dispatched Watermelon Ice and Vimbull Ice, an imaginative fusion reminiscent of Red Bull and Vimto.
Some flavors, such as Gummy Bear, draw inspiration from candies, a choice that has invited criticism for its potential allure to youngsters. Mr. Davies stated that SKE intends to persist with offering these flavors, highlighting that numerous Gummy Bear enthusiasts are adults. He emphasized that the onus rests on enforcement measures to thwart the sale of vapes to minors.
Chair of the Health Committee, Mr. Brine, conveyed, “Our interactions with the vaping industry have left us unconvinced that they have taken sufficient measures to eliminate the appeal of their products to children.”
He further expounded, “Marketing strategies seem tailored to target this specific age group through vibrant hues and flavors reminiscent of unicorns, confections, or popular fizzy beverages. We advocate for packaging and promotional constraints aligned with those imposed on tobacco items.”
Despite predictions of a potential prohibition on disposable vapes, Mr. Davies conveyed that SKE has established a base in Manchester, actively recruiting personnel and embarking on expansion endeavors.
“We are committed to our presence here,” he affirmed.