News

On November 25, the US Supreme Court declined to hear an appeal filed by R.J. Reynolds Tobacco Company and other companies of a decision issued by the Fifth Circuit Court of Appeals in the case titled R.J. Reynolds Tobacco v. FDA, 24-189. The decision by the Fifth Circuit Court of Appeals upheld the FDA's regulation requiring new graphic and text cigarette health warnings on cigarette packages and cigarette advertisements. The Supreme Court justices did not issue any explanation with their decision to decline the appeal filed by R.J. Reynolds. The FDA released a new guidance document on September 12, 2024 which states that the agency plans to begin enforcement of the graphic cigarette health warnings in December 2025. Read more here.

On Nov. 26, FDA announced the agency is seeking fines against two brick and mortar retailers and 16 online retailers who have continued to break the law. FDA previously issued warning letters to these retailers for their sale of unauthorized tobacco products; however, follow-up inspections revealed that the retailers had failed to correct the violations. Many recipients of warning letters correct the violative conduct. However, failure to promptly correct the violations can result in additional enforcement actions such as civil money penalties, as is the case for these companies.

FDA remains committed to addressing unauthorized tobacco products throughout the entire supply chain. To date, FDA has filed civil money penalty complaints against 79 manufacturers and 175 retailers for distribution and/or sale of unauthorized tobacco products. Additionally, FDA works closely with federal enforcement partners, including through a newly announced federal interagency task force. For example, FDA and U.S. Customs and Border Protection recently announced the seizure of $76 million in illegal e-cigarettes.

To date, FDA has authorized 34 e-cigarette products and devices. The agency maintains a printable one-page flyer of all authorized e-cigarette products that retailers can easily consult to determine which products may be lawfully marketed and sold in the United States. Entities manufacturing, importing, selling, or distributing e-cigarettes that lack the required premarket authorization risk enforcement actions.

View the Compliance Database here.

With both chambers of Congress having elected their leaders for the next Congress, focus now turns to the lame duck session. Of most importance is what Congress will do with the 12 annual spending bills set to expire December 20th. House Speaker Mike Johnson (R-LA) has stated he wants to pass a continuing resolution until March, at which time Republicans can have more influence writing the annual spending bills. But other Republicans want to complete their work now and fear a March spending fight would distract from the first months of the new Trump Administration. House Majority Leader Steve Scalise (R-LA) suggested passing a year-long continuing resolution (CR), effectively punting on the entire FY25 budget. As of yet, President-elect Trump has not publicly weighed in. If they do ultimately choose to pass their spending bills before the end of the year, they need a bipartisan agreement on the topline spending levels, the split between defense and non-defense spending, and subcommittee allocations very soon.

In addition to the annual appropriations bills, Congress must consider an emergency supplemental appropriations bill. Following the devastation of Hurricanes Helene and Milton this autumn, the Disaster Relief Fund is quickly running out of cash to aid in the recovery process. Last week, President Biden sent to Congress a list of roughly $100 billion in spending for various emergencies across the nation. Though each request is intended to respond to natural disasters, congressional Republicans are not entirely supportive of all requests. They are preparing to deny funding for many of the requests. However the emergency supplemental is structured, it is poised to pass before the end of the year. They will either attach it to an FY25 regular appropriations bill, a CR, or a National Defense Authorization Act. Republicans continue to assess their plans for next year’s reconciliation powers. As a reminder, under unified government, each year, the governing party has one opportunity to pass a reconciliation bill addressing spending or revenue matters that can bypass the traditional 60-vote threshold in the Senate and pass with a simple majority. The current Republican focus is on using the reconciliation bill in early 2025 to address tax cuts. But health programs, health financing, and related matters will be in the mix for the reconciliation package. Read more here.

Are you looking to unlock your leadership potential? The CDA Leadership Academy, in partnership with GRITT Business Coaching, offers a transformative hybrid program combining expert coaching, collaborative learning, and real-world applications. Don’t miss your chance to register for the second cohort of the CDA Leadership Academy.

Learn to communicate effectively, improve team dynamics, and cultivate a strategic mindset, all while connecting with like-minded individuals. Immersive yourself within the curriculum by navigating challenges with confidence and building a strong leadership presence.

The CDA Leadership Academy is designed specifically for the convenience distribution industry and CDA members. It is ideal for aspiring leaders, seasoned professionals, and anyone seeking to master the art of leadership.

To learn more and reserve your spot, click here or reach out to Lauren Herbert. Don’t miss this opportunity to take your leadership journey to the next level.

Register now for an informative webinar featuring Tom Baldwin, distributor liaison, and Mike Farrah, client relationship director, of Management Science Associates (MSA), on Jan. 29, 2025, at 1 pm ET. Join Tom and Mike for a convenience channel performance review of warehouse delivered products across key categories such as cigarettes, OTP, candy and snacks, and more, offering valuable insights into the convenience distribution channel.

Can’t attend the webinar on Jan. 29? Still register to attend and you’ll receive a recording of the webinar directly to your inbox on Jan. 30.

On November 19, the U.S. Surgeon General released a new report on health disparities related to tobacco use. While smoking rates have declined overall by more than 70% since 1965, certain groups continue to have higher rates of tobacco use. The report highlights the significant progress made in reducing tobacco-related deaths, though disparities remain, with certain populations still facing higher risks of disease and death from smoking. The report suggests reducing tobacco consumption through further regulation, including restrictions on flavored products and nicotine limits.

President-elect Donald Trump finalized his health team with key appointments to lead the Centers for Disease Control and Prevention (CDC), the Federal Drug Administration (FDA), and the role of Surgeon General. He selected Marty Makary, a Johns Hopkins surgeon, to head the FDA, emphasizing his focus on restoring the agency’s reputation and cutting bureaucratic red tape. Trump nominated former Florida Rep. Dave Weldon to be the CDC director, highlighting his experience in health policy and medicine, though Weldon has expressed skepticism about vaccines. Dr. Janette Nesheiwat, a medical doctor and Fox News contributor, was chosen as the next Surgeon General. Trump’s team also includes Robert F. Kennedy Jr. as nominee for the Department of Health and Human Services (HHS), a choice that has drawn concern due to Kennedy’s controversial stance on vaccines. The appointments are subject to Senate confirmation. Additionally, Trump nominated Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS). Read more here.

On Nov. 15, 2024, the U.S. District Court for the Eastern District of Texas issued its ruling invalidating the entirety of the Department of Labor’s (DOL) overtime final rule. In his ruling, Judge Sean Jordan stated that while DOL has the authority to define and delimit the terms of the overtime exemption, “that authority ‘is not unbounded.’” He explained, "the minimum salary level imposed by the 2024 Rule 'effectively eliminates' consideration of whether an employee performs 'bona fide executive, administrative, or professional capacity’ duties in favor of what amounts to a salary-only test.” He also said that the Department’s automatic updates to the minimum salary threshold every three years "violates the notice-and-comment rulemaking requirements of the [Administrative Procedure Act].”

As a reminder, CDA submitted comments in the fall of 2023 opposing the proposed rule, officially titled, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.

With this decision, the minimum salary threshold goes back to $35,568, and the threshold for highly compensated employees is set to $107,432. The DOL may appeal the decision to the 5th Circuit but will likely drop the lawsuit under the new Trump administration. Read more here.

Growth Begins at the End of Your Comfort Zone Tuesday, February 18 | 2:15 pm CT During this feature session, Coach Ken Carter will draw on his extensive coaching experience to share invaluable lessons on teamwork, accountability, integrity, and leadership. He firmly believes that greatness is defined by the service you provide to others, and he'll provide practical advice on how to excel in today's world, both on and off the court.

Following Coach Carter’s session, don’t miss the NEW Distributor Showcase* — a unique opportunity for manufacturers to engage with wholesale distributor members in an exclusive setting beyond the trade show.

Questions? Contact eventsupport@cdaweb.net.

Marketplace Website | Distributor Registration | Exhibit Space Registration
Schedule | Education | Hotel and Travel

*The distributor showcase is for CDA member distributors only. Participation is required.
By attending Marketplace 2025, you agree to the CDA Notices & Disclaimers.

On Nov. 21, 2024, the U.S. Food and Drug Administration (FDA) posted additional regulatory science policy memos related to the agency’s review of premarket applications. This release includes thirteen memos developed between 2020 and 2023 that describe the process and prioritization methods used to conduct filing and review of PMTAs for flavored e-cigarettes and other PMTAs, as well as the bases to support specific actions related to environmental assessments.

In April, the FDA resumed the posting of regulatory science policy memos. This is now the fourth batch of released memos in 2024, and including those posted today, the FDA has released a total of 26 memos. The release of these latest memos reflects the center’s commitment to enhance transparency consistent with the December 2022 evaluation of the center by an independent expert panel facilitated by the Reagan-Udall Foundation. Visit the FDA website to read more about FDA’s actions in response to the evaluation. Read the full statement here.

On Nov. 18, 2024, Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) released the Democrat’s farm bill draft text. This farm bill will be Chairwoman Stabenow’s last opportunity to shape farm and nutrition policy before her exit at the end of the 118th Congress, and Sen. John Boozman (R-AR) is poised to take over as Chair next Congress. Stabenow’s Senate bill, named the Rural Prosperity and Food Security Act, has differences with the House bill, particularly on farm safety net increases and the CCC's Section 5 authority. It would raise funding for farm safety net programs while opposing cuts to SNAP benefits.

The proposed Senate farm bill would tighten restrictions on intoxicating hemp products but is not as prohibitive as the language in the House farm bill. As a reminder, the House-led Farm, Food, and National Security Act (H.R. 8467) was approved by the House Agriculture Committee on May 23, 2024. H.R. 8467 contains a controversial amendment by Rep. Mary Miller (R-IL) that would ban most ingestible CBD products. The Senate version would eliminate the intoxicating hemp products loophole by replacing “delta-9” with “total,” limiting any type of THC to 0.3% on a dry weight basis. It also includes THC acid, or THC-A, which would still allow for low levels of THC in hemp products — something the industry has asked for. The House’s farm bill, in contrast, included an all-out ban on all THC in hemp products.

Discussions between chambers have been difficult, and the release of the Senate bill text appears to be an effort to spark some progress in negotiations or force a floor vote on the legislation, even if lawmakers ultimately decide instead to add a one-year farm bill extension to a year-end funding package. Read more here and here.

Rep. Morgan Griffith (R-VA) is reportedly working on new legislation that seeks to give the U.S. Food and Drug Administration (FDA) explicit authority to regulate hemp-derived products, proposing new labeling and manufacturing quality requirements. The draft bill is being collaboratively worked on with Republican staff from the House Energy and Commerce Health Subcommittee. Griffith's bill will aim to balance regulatory oversight with consumer demand for hemp products, with details still being finalized. The introduction of the legislation in the lame-duck session is possible, but the hemp regulation debate is expected to continue into the 119th Congress.

In August 2024, the Drug Enforcement Administration (DEA) announced plans to hold an administrative hearing on its proposal to move marijuana from Schedule I of the Controlled Substances Act to Schedule III under the Controlled Substances Act. The Federal Register notice announced a Dec. 2, 2024, start date for the hearing. However, on Oct. 31, 2024, a DEA administrative law judge (ALJ) ruled that because the DEA erred in its presentation of witnesses for the Dec. 2, 2024, hearing, witness statements and testimony likely will not be heard until early 2025 at the earliest. If the ALJ’s ruling stands, this would punt the final decision regarding the rescheduling of marijuana to the next Presidential Administration.

Are you looking to unlock your leadership potential? The CDA Leadership Academy, in partnership with GRITT Business Coaching, offers a transformative hybrid program combining expert coaching, collaborative learning, and real-world applications. Don’t miss your chance to register for the second cohort of the CDA Leadership Academy.

Learn to communicate effectively, improve team dynamics, and cultivate a strategic mindset, all while connecting with like-minded individuals. Immersive yourself within the curriculum by navigating challenges with confidence and building a strong leadership presence.

The CDA Leadership Academy is designed specifically for the convenience distribution industry and CDA members. It is ideal for aspiring leaders, seasoned professionals, and anyone seeking to master the art of leadership.

To learn more and reserve your spot, click here or reach out to Lauren Herbert. Don’t miss this opportunity to take your leadership journey to the next level.

Following the U.S. Food and Drug Administration's (FDA) rigorous scientific review, the agency issued a renewal of modified risk granted orders to Swedish Match USA, Inc., for eight General Snus products. With this renewal, these products may continue to be marketed – as they have been authorized to do so since 2019 – with the following modified risk claim: “Using General Snus instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”

The products receiving modified risk granted orders are: General Loose, General Dry Mint Portion Original Mini, General Portion Original Large, General Classic Blend Portion White Large-12ct, General Mint Portion White Large, General Nordic Mint Portion White Large-12ct, General Portion White Large, and General Wintergreen Portion White Large. The modified risk granted orders issued by FDA are specific to the above-mentioned products and expire Nov. 7, 2032. If at any point the agency determines that, among other things, the continued marketing of the products no longer benefits the health of the population as a whole, the agency may withdraw the orders. Read more here.

Presenter: Don Burke, Management Science Associates, Inc. (MSA)
Watch On-Demand

In this informative webinar, Don explored the latest trends in the emerging and alternative products world. Gain valuable insights into the top-selling emerging items and how their performance compares to CBD sales. The top selling states for these emerging items were identified, as well as the strength of these items in the states where you distribute.

Last week, the Coalition for Cannabis Policy, Education, and Regulation (CPEAR) released the following statement on cannabis ballot initiatives in Florida, North Dakota, South Dakota and Nebraska.

“Adult use cannabis legalization ballot questions were rejected in three states, indicating resistance to expansion of cannabis markets across the country. The failed ballot initiatives make it clear that not every state is ready to take on cannabis policy reform,” said Shanita Penny, CPEAR co-executive director.

Voters in Nebraska passed two separate ballot initiatives, one permitting qualified patients to possess and use medical cannabis and another regulating its production and distribution pending the outcome of a lawsuit against the campaign.

“The time has come to respect the will of the people and take a serious look at cannabis policy on the federal level—one rooted in science, data, and a respect for states’ rights to craft regulations that work for their residents,” Penny continued. “As this new Congress convenes, we hope lawmakers will prioritize thoughtful, bipartisan solutions like the STATES Act. By advancing legislation that aligns with Americans’ preferences, Congress can begin to close the gap between state and federal policy, supporting a fair, safe, and equitable system for everyone.”

In the U.S., adult public opinion heavily favors cannabis legalization, with 88% supporting the legalization of cannabis for medical or adult-use. The outcomes of these ballot initiatives bring the total number of states that have legalized cannabis in some form to 39, and further demonstrates the state-by-state patchwork and need for a federal framework.

The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act is a bipartisan proposal that would create commonsense guardrails to protect our youth, protect our roads, battle against illicit markets, and ensure that states can enforce their own laws in a manner that promotes public safety and accountability. This legislation would not create new cannabis markets; it would simply align federal policy with state decisions, ensuring existing cannabis markets operate more safely while allowing federal efforts to focus on keeping cannabis out of states where it remains illegal.

Recent polling found that voters strongly support allowing states to make their own decisions about cannabis policy, with specific support for the STATES Act.

Are you looking to unlock your leadership potential? The CDA Leadership Academy, in partnership with GRITT Business Coaching, offers a transformative hybrid program combining expert coaching, collaborative learning, and real-world applications. Don’t miss your chance to register for the second cohort of the CDA Leadership Academy.

Learn to communicate effectively, improve team dynamics, and cultivate a strategic mindset, all while connecting with like-minded individuals. Immersive yourself within the curriculum by navigating challenges with confidence and building a strong leadership presence.

The CDA Leadership Academy is designed specifically for the convenience distribution industry and CDA members. It is ideal for aspiring leaders, seasoned professionals, and anyone seeking to master the art of leadership.

To learn more and reserve your spot, click here or reach out to Lauren Herbert. Don’t miss this opportunity to take your leadership journey to the next level.

• Marketplace Gives Back: School Supply Kits for Kids - Help assemble school supply kits for students in need, benefiting the Ronald McDonald House Charities of Greater Houston.

• Passport to Prizes - Get the chance to win prizes at Marketplace by engaging with exhibitors.

• Prize Wheel - Distributor attendees, listen for your name to be called for a chance to spin the wheel and win a prize!

• Grand Prize Give Away - Don’t miss the chance to win a 3-night getaway at the Grand Hyatt Baha Mar, Nassau, Bahamas! (For distributor member attendees only, must be present at the trade show to win.)

Distributor companies pay one fee to register as many company personnel as they like. Register now!

Questions? Contact eventsupport@cdaweb.net.

Marketplace Website | Distributor Registration | Exhibit Space Registration
Schedule | Education | Hotel and Travel

*The distributor showcase is for CDA member distributors only. Participation is required.
By attending Marketplace 2025, you agree to the CDA Notices & Disclaimers.

KMC Distributors is a tobacco and cigar distributor which services retailers and wholesalers across America.

Contact information for KMC Distributors is as follows:

Love Popli
KMCDISTRIBUTORSLLC@GMAIL.COM
KMC Distributors
1810 Byberry Road, Unit B
Bensalem, PA 19020
(215) 789-8318

President Trump has won the presidency, securing more than the 270 electoral votes needed to defeat Vice President Harris and return to the White House next year for a second term. Republicans won majority control of the Senate, ending Democrats’ four-year control over the chamber. The GOP made gains in states won by former President Trump three times - Montana, Ohio, and West Virginia - bringing their majority to at least 52 seats with a few races yet to be called. Only the House remains unresolved, as results are still trickling in. But Republicans feel more optimistic about keeping the majority than Democrats currently do about flipping the lower chamber. See live results here. Regarding potential agency leadership in the next administration, this is POLITICO’s latest snapshot of the leading contenders for Trump’s Cabinet. Read more about the election and its aftermath here.

Congress will return to Washington, D.C., next week for a lame duck session with a long to-do list. The top priorities include passing an emergency relief package after two major hurricanes; passing the National Defense Authorization Act (NDAA); and funding the government beyond the stopgap law’s Dec. 20, 2024, deadline.

November 13 at 2 pm ET

Register now for an informative webinar featuring Don Burke, senior vice president of Management Science Associates (MSA), on Nov. 13, 2024, at 2 pm ET. Join us as Don explores the latest trends in the emerging and alternative products world. Gain valuable insights into the top-selling emerging items and how their performance compares to CBD sales. The top selling states for these emerging items will be identified, and you will see the strength of these items in the states where you distribute.

Can’t attend the webinar on Nov. 13? Register now and you’ll receive a recording of the webinar directly to your inbox on Nov. 14.

You won't want to miss the Marketplace Grand Prize: a three-night stay for two at the Grand Hyatt Baha Mar located on the northern shore of Nassau, Bahamas, plus roundtrip airfare for two, generously provided by Galactic Performance Solutions. Set along the pristine Cable Beach, the Grand Hyatt Baha Mar offers guests a white sand beach and breathtaking turquoise waters. Relax at the lounge by the pool, indulge in rejuvenating rituals at the destination spa by Espa, and savor soulful cuisine at world-class restaurants, bars and lounges. For an added touch of luxury, the prize also includes a spa treatment for both the winner and their guest.

The grand prize drawing will take place at the trade show on Tuesday, Feb. 18, 2025, at 1:45 PM CT. Distributor member attendees at Marketplace are eligible and must be present at the trade show to win. For more information, watch this video or visit the Marketplace Grand Prize page.

The Innovator’s Dilemma: Navigating Our AI Future Monday, February 17 | 1:30 pm CT Join Zack Kass, Futurist and Former Head of GTM at OpenAI, for an eye-opening keynote as he highlights how to achieve success in an AI-driven era. Drawing from his extensive experience in AI strategy and implementation, Zack offers a pragmatic approach to future-proofing your business. Dive deep into the latest AI strategies and implementation tactics straight from the frontlines. Zack will share actionable approaches to future-proof your business in an AI-driven world and reveal how to turn today’s challenges into tomorrow’s opportunities.

Plus, participate in the NEW Distributor Showcase* for a unique opportunity for manufacturers to connect with wholesale distributor members outside of the trade show.

Questions? Contact eventsupport@cdaweb.net.

Marketplace Website | Distributor Registration | Exhibit Space Registration
Schedule | Education | Hotel and Travel

*The distributor showcase is for CDA member distributors only. Participation is required.
By attending Marketplace 2025, you agree to the CDA Notices & Disclaimers.