VPZ
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VPZ, Tobacco Tactics, updated 27 September 2023, accessed 25 April 2024.
VPZ operates a chain of e-cigarette stores in the United Kingdom. It also sells its own-brand devices and manufactures e-liquid through a sister company, Absolute E-Juice.1 The company has close financial links with Philip Morris International (PMI) via its UK subsidiary Philip Morris Ltd (PML).23
In February 2022 the UK Advertising Standards Agency upheld a complaint made against VPZ for its promotion of “cessation” services in its stores, instructing it to remove medicinal claims from its marketing material.4 See below for details.
Background
VPZ is the trading name for CCHG Ltd, which was founded in 2012 by brothers Callum and Connor Henderson, who are listed on UK Companies House as having significant control of the company.567
Headquartered in Edinburgh, VPZ was previously known as Vaporized, until the company rebranded at the start of 2019.89
Relationship with the Tobacco Industry
Loan from Philip Morris Ltd
In September 2018, Convex Capital Ltd stated that it had helped VPZ secure a loan of UK£12.5 million (around US$15 million) from Philip Morris International.210 The funds allowed VPZ to fulfil one of its “main strategic objectives… to accelerate [its] store opening programme.”11
In February 2020, VPZ told The Grocer that “as the UK’s leading vaping retailer, our alignment [with PML] has supported our growth ambitions and offered a number of synergies as we aim to help even more Brits realise the transformative benefits of switching from smoking to the reduced-risk alternatives available.”2 A PML spokesperson told The Grocer that there are no plans to acquire VPZ “at this time.”2
VPZ has stated that the loan was repaid and that it no longer has a financial relationship with PMI.12
Markets PMI’s HTP alongside E-cigarettes
IQOS, a heated tobacco product produced by PMI, has been promoted on VPZ’s website.13
The Grocer also reported that VPZ has a distribution deal with JUUL Labs to sell their products.2 Altria holds a 35% stake in Juul Labs.
Three VPZ directors previously worked for Fontem Ventures, a subsidiary of Imperial Brands (previously Imperial Tobacco).
Directors
As of October 2022, the following were listed as directors: 5
- Douglas Mutter, Manufacturing and Compliance Director. He also deals with public affairs for the CCHG group. He worked for Fontem Ventures from 2012-2015.14 Mutter is also a Director of the UK Vaping Industry Association (UKVIA).
- William Rooney. He worked for Fontem Ventures from 2014.15
- Ian Henderson, Finance Director. He worked at Fontem Ventures in 2015.16
- Callum Henderson5
- Mohamed Tahir5
Memberships and Partnerships
- VPZ are founding members of the UK Vaping Industry Association (UKVIA).17
- VPZ is an official partner of Vaping Awareness Month “VApril”.8
Activities
Smoking “cessation” services in VPZ stores
VPZ began rolling out what it describes as “vape clinic” services in July 2021 to help users switch from cigarettes to e-cigarettes sold by the retailer. In 2022, the service was advertised as being available in 20 stores across the UK.18
Douglas Mutter, quoted in The Scotsman, said: “our new concept is an investment to fill the void left by the loss of local NHS stop smoking services.”19 However, consultations are with a VPZ employee rather than a trained healthcare professional.
VPZ’s website stated that:
“our specialist consultants will dedicate time to sit down with you and look at all of the options available from e-cigarette starter kits to heat-not-burn products, ultimately finding the right device for your needs.”2021
In August 2022, Action on Smoking and Health (ASH) Scotland complained to the Advertising Standards Authority (ASA) about the use of the term ‘clinic’ by VPZ and the claims about its cessation service.22 In February 2023 the ASA upheld the complaint, stating that VPZ’s promotion was covered by marketing restrictions for e-cigarettes:4
The ASA concluded that “the ad contained medicinal claims for smoking cessation which were prohibited by the CAP [Committee of Advertising Practice] Code” and that “the ad must not appear again in its current form.”4
From late 2021, the terms and conditions on the web page included a reference to PMI’s IQOS heated tobacco product, and its ‘Try Before You Buy service.2123 There is no reliable evidence that heated tobacco products help people stop smoking cigarettes.24
Ban smoking campaign
VPZ launched a campaign on 10 March 2022 to coincide with National No Smoking Day, calling for a “complete ban on smoking”. The retailer enlisted the services of former Tottenham and Liverpool player Neil “Razor” Ruddock to act as the campaign ambassador. As part of its anti-smoking campaign, VPZ argued that “vaping is fundamental to reaching this target” and highlighted its “vape clinic” services.25
In addition, VPZ brought petitions to both the British and Scottish governments calling for an outright ban on the sale of cigarettes and smoking.2627
In its petition to the Scottish government, VPZ referenced its consultation on restrictions around promotion and advertising of e-cigarettes, and argued that it “strongly believes that there should be advertising to promote and educate on the public health opportunity of vaping and welcomes engagement and dialogue on helping to shape a strategy”.27
Worked with NHS Trusts
In 2019, it was reported that VPZ had struck a deal with The Ladywell Unit at University Hospital Lewisham, one of the UK’s largest mental health hospitals, to provide free e-cigarettes to those trying to quit smoking. Every smoking patient was offered a £20 Hexa starting kit until the first 100 were used. The deal, reportedly the first of its kind, came under heavy criticism.28
Professor Martin McKee from the London School of Hygiene and Tropic Medicine told The Telegraph: “This is an extraordinary time for the NHS to engage in a project like this, in light of what we are seeing in the United States, and the risks of vaping.”28
The Telegraph also quoted Douglas Mutter, who said: “We will also work closely with them to monitor the impact of the project and aim to roll-out the scheme throughout the UK as we work towards transforming the health of the nation.”28
Campaigned for stores to be reclassified as “essential” during Covid pandemic
In February 2021, during the third national lockdown, VPZ launched an, ultimately unsuccessful, campaign for e-cigarette stores to be granted essential status.29 UKVIA conducted a similar campaign.30
Offered vouchers to frontline workers
In July 2020, during the Covid-19 pandemic, VPZ offered £100,000 in vouchers to NHS staff, other emergency workers and members of the armed forces to claim a free e-cigarette as a “thank you” to frontline workers.31
The scheme was criticised by Action on Smoking and Health (ASH) as a “marketing stunt” and a way to get around a ban on tobacco advertising. Deborah Arnott, chief executive of ASH, said: “VPZ has been lent millions by Philip Morris. We’ll be reporting this to the authorities.” In response, a Philip Morris spokesperson said “the vouchers referred to cannot be redeemed for Philip Morris products because we took no part in the VPZ promotion. Any allegation of our involvement is incorrect.”32
Spoke at Tobacco Industry sponsored fringe event in Scotland
Douglas Mutter spoke at a fringe event at the 2019 Scottish National Party autumn conference, called “Where next for vaping in Scotland?” Mutter said that he was concerned about the “disinformation” about vaping, which he likened to that “about vaccination”. Scottish MSPs attended this event.33
Relevant Link
TobaccoTactics Resources
- E-cigarettes: Philip Morris International
- Heated Tobacco Products: Philip Morris International
- UK Vaping Industry Association
TCRG Research
For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.
