Elfbar scandal widens with mandatory recall

by Alex Yau alex.yau@newtrade.co.uk

The fallout from the Elfbar scandal continues in UK convenience stores, with a new mandatory recall, regulator threats to fine stockists and the removal of some delivery services from independent stores.

While Booker, One Stop and Nisa had already ordered stores to remove and return Elfbar stock, last week, government regulators stepped in and ordered that 10 batches of Elfbar products be removed from sale “with immediate effect”.

Announcing the order, the Chartered Trading Standards Institute (CTSI) and Medicines and Healthcare Products Regulatory Agency (MHRA) criticised stores and wholesalers that had continued to sell Elfbar 600 stock over the legal 2ml e-liquid limit.

The joint statement read: “Some businesses have been told that there is a voluntary withdrawal of non-compliant products in place and have interpreted this as meaning they do not have to withdraw non-compliant products from sale if they

Horizon racism claims

do not want to.

“This is not correct. All non-compliant products must be withdrawn from sale. Anyone who continues to sell these products is breaking the law and leaves themselves open to fines, seizures and prosecution.”

A survey of more than 100 independent shops found only half removed Elfbar products from sale after the brand admitted the regulatory breaches.

The batch numbers to be removed from sale are: EP017693, EP020398, EP020250, EP019749, EP020257, EP019746, EP020120, EP020394, EP019893 and EP019894.

Enforcement notices have been sent to every local trading standards authority as well as to trade associations.

Bestway trading director Kenton Burchell confirmed to RN the wholesaler had removed non-compliant stock.

Dee Bee Wholesale managing director Nick Ramsden added that the company was auditing stock and would remove any affected batches.

RN understands Elfbar and Lost Mary will also be restocked by Booker, One Stop and Tesco subject to verification of compliance, but a date is to be confirmed.

Uber Eats reacts

The recall also prompted home delivery company Uber Eats to ban independent retailers from selling vapes entirely. Messages sent to retailers by the company, seen by RN, confirmed it was not allowing independent convenience stores with “decentralised” (independent) listings to sell vapes on its service due to compliance concerns, giving the major grocers a monopoly on selling the products on the platform. It warned it would remove vaping products from stores found listing the category. Independent retailers found selling vapes would also have their Menu Maker function revoked, forcing them to email individual product changes for prior approval instead. The decision faced criticism from affected retailers.

Trading standards

“overwhelmed”

CTSI warned issues with illicit disposable vapes could be more widespread, as “trading standards teams are overwhelmed by the volume of non-compliant vapes being sold by the retailers”.

The body called for more support from government to tackle a “tidal wave of non-compliant vapes being sold”, as it claimed one in three vapes on the market may be non-compliant, based on test purchasing.

It cited incorrect health warnings, wrong tank size, high nicotine concentration and incorrect labelling as signs of illicit products.

Suggested changes were “more boots on the ground” to crack down on retailers and to “toughen up” sanctions on stores and suppliers caught out.

Freedom of Information requests by retailer Vape Club released last week showed more than one million illegal vaping products were seized in London alone in 2022.

Suppliers and retailers face a separate vaping crackdown over poor compliance with mandatory electrical recycling laws (WEEE regulations).

Government-endorsed advisor Material Focus claimed 90% of vaping suppliers were in breach of the legislation.

Post Office’s Fujitsu Support Services-run helpdesk at the height of the Horizon scandal was “toxic”, with widespread racism, a whistleblower claimed last week.

Former Horizon helpline worker Amandeep Singh told the Horizon inquiry of his experience at the Wakefield office from 2000 to 2001: “The floor on these days was most toxic, with vocal characters in Squad A, unchallenged by managers, who looked away as all Asians were called ‘Patels’, regardless of surname. Shouts across the floor could be heard, saying: ‘I have another Patel scamming again’.”

“They mistrusted every Asian postmaster. They mocked Scottish and Welsh postmasters, and pretended they could not understand them. They created a picture of postmasters that suggested they were incompetent or fraudsters.”

PMPs for premium brands

Premium brands are launching price-marked varieties in response to the growing importance of value to customers.

National Lottery reps have pledged new terminal devices are “coming soon”, according to several stores visited last week.

Steve Wilson, owner of two stores in Galashiels, Scottish Borders, told RN that lottery reps were now operating under the Allwyn brand, following the new lottery operator’s acquisition of Camelot last month. He said his rep claimed that “new lotto terminals are coming soon”.

Describing the news, Wilson told RN: “The lottery terminals are old, but they still work. The important part for me is seeing that Allwyn is investing in retail.”

Asked about the new terminals, Allwyn said:

“Allwyn has exciting plans to invest in and grow the retail channel over the course of the Fourth Licence. We will start to communicate with retailers this summer to share the first details.”

Discussing the firm’s UK plans in an interview with iGaming Business this month, Allwyn group chief executive Robert

Chvátal said: “It has to be a journey of portfolio innovation, a journey of further digitalisation – not only in the online space, but also in retail.”

He continued: “Retail is really important to us, and we’re committed to growing this channel, helping the brick-andmortar world move with the digital times.”

Lindt is to add a 95p price-mark to its 38g Lindor Milk and Lindor Milk Salted Caramel Treat Bars.

Explaining the move, Lindt national account manager Daniel Caton described shoppers as “savvier than ever”. He added: “Price-marked-pack purchasing is increasing in an inflationary environment, and pricing is particularly important when purchasing snacks.”

PayPoint voucher rollout

PayPoint is to create a network of ‘super agent’ stores following its acquisition of gift voucher firm Appreciate Group (AG).

Asked by RN to explain the benefits of the takeover for stores, PayPoint corporate affairs and marketing director Steve O’Neill said it would create new commission opportunities including “rolling out physical Love2shop gift cards across the network”.

O’Neill added that 2,0003,000 retail partners would become ‘super agents’ of AG’s Park Saving scheme, which sees users deposit funds during the year and receive vouchers back at Christmas. He said: “We’ll be targeting the Christmas savings cycle for 2024 rolling out from September 2023.”

PayPoint also said commission paid to its retailers had risen 25%, driven by new and current products and services.

Budget tax hike planned

The government’s planned corporation tax rise is due to hit stores with profits greater than £250,000 per year, after ministers signalled they would not back down in this week’s Spring Budget.

From 6 April, businesses over this threshold will pay 25% rather than the current 19%. Stores making between £50,000 and £250,000 will get some relief and those on less than £50,000 per year will remain on the 19% rate.

A full explanation of the budget’s impact on stores will be included in next week’s edition of RN.