BUSINESS MAVERICK: Interview: SA’s vaping industry is going up in smoke

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Co-operative Governance Minister Nkosazana Dlamini Zuma’s failing war on smoking has also knee-capped the fast-growing vaping industry. Business Maverick spoke to Asanda Gcoyi, CEO of the Vapour Products Association of South Africa about this state of affairs.

Vaping is generally regarded as a safer alternative to smoking – the lesser of two evils – but the industry is in its infancy and there are still a lot of unknowns about its health risks. Among other things, it is regarded as a route to quit smoking, but the jury is also out on that score, given the fact that many non-smoking teenagers have taken up the habit. Vaping utilises a battery device to heat liquids which can contain nicotine, cannabis or other harmful substances to produce a vape.

A: This is merely an estimate based on the information from VPASA’s community of members, not all of whom have provided us with their financial data. However, approximately over R100-million in revenue has been lost since the first day of lockdown by the vaping industry. For the tobacco and vaping industry as per your query, reports estimate the loss at R4-billion.

A: Our data shows that around 48 electronic vapour product businesses, with 155 locations between them, have been negatively affected by the lockdown restrictions and the tobacco ban. Of these, around 34 locations are now shut, with 24 having been forced to vacate or relocate due to rental agreements. The majority of these businesses are family-run and the business is often their sole source of income.

A: Thus far, we have not been made aware of any such studies. However, we have heard through our network of vapers, manufacturers and shop owners that people have been able to obtain illicit EVPs through friends who may have hoarded or bought products from back channels. And as mentioned above, one would think there are those who may have gone back to smoking.

 

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