Sep 26, 2019

Revenue from marijuana vaping products dips 15% amid health fears

Vape pens. Photo: Joe Raedle/Getty Images

The legal marijuana industry's revenue from sales of vaping products has dropped 15% amid health fears stemming from a vaping-related lung illness, AP reports.

Why it matters: Most of the patients who were sickened had a history of using e-cigarette products containing THC, the chemical found in marijuana, and nearly all cases were found in people who purchased products from illegal sellers. Federal and state health agencies have advised the public to stop vaping until they can find conclusive evidence about the cause of the illness.

  • Oregon, which has the only death linked to THC vapes bought at legal shops, has seen its revenue drop more than 60%.
  • New Mexico, Massachusetts, Nevada and Montana all saw revenue drops of one-third or more — while California's fell by 6%. 
  • Authorized shops are trying to "boost the public's confidence," per AP. Some are promoting their vaping products as government-tested or demanding ingredient lists from vendors. Others are scrambling to get liability insurance.

Of note: Blu e-cigarettes maker Imperial Brands became the first global tobacco maker on Thursday to warn sales and profit would be lower than expected this year due to the U.S. crackdown on vaping products, the Wall Street Journal reports.

Go deeper: Juul suspends U.S. advertising as it names new CEO

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 8 a.m. ET: 6,294,222 — Total deaths: 376,077 — Total recoveries — 2,711,241Map.
  2. U.S.: Total confirmed cases as of 8 a.m. ET: 1,811,277 — Total deaths: 105,147 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Nearly 26,000 coronavirus deaths in nursing homes have been reported to federal health officials —Coronavirus looms over George Floyd protests across the country.
  4. Federal government: Trump lashes out at governors, calls for National Guard to "dominate" streets.
  5. World: Former FDA commissioner says "this is not the time" to cut ties with WHO.
  6. 🎧 Podcast: The virus didn't go away.

More than 1 in 6 black workers lost jobs between February and April

Adapted from EPI analysis of Bureau of Labor Statistics data; Chart: Andrew Witherspoon/Axios

As is often the case, the staggering job losses in the coronavirus-driven recession have been worse for black workers.

By the numbers: According to a report from the Economic Policy Institute, titled "Racism and economic inequality have predisposed black workers to be most hurt by coronavirus pandemic," more than 1 in 6 black workers lost their jobs between February and April.

Coronavirus could lower GDP by $15.7 trillion

Reproduced from Congressional Budget Office; Chart: Axios Visuals

The CBO released projections on Monday for U.S. nominal GDP to be lower by $15.7 trillion over the next decade than its estimate in January as a result of the coronavirus pandemic.

What they're saying: It predicts that when adjusted for inflation GDP will be $7.9 trillion lower over the next decade and down by $790 billion in the second quarter of this year — a 37.7% quarterly contraction.