E-cigarette maker Kingtons taps YPB for anti-fake labels

Chinese e-cigarette manufacturer Kingtons Tech has signed a new three-year supply agreement with YPB for anti-counterfeit labels, extending their earlier deal.

The deal – worth A$181,000 (around $135,000) – takes YPB into a "major, rapidly growing market segment where counterfeit is rife, extremely costly and its consequences potentially fatal," according to the company.

It covers the supply of specified volumes of YPB tracer technology and scanners in each 12-month period. YPB previously supplied over 200,000 anti-counterfeit labels to Kingtons since 2020.

Founded in 2009, Shenzhen-based Kington manufactures a wide range of e-cigarette and vaporiser products, and along with domestic sales exports its products to Europe, North and South America, the Middle East and Asia. It markets the products under its own brand, whilst also serving as an OEM supplier to partners.

Counterfeiting of e-cigarettes or vapes is widespread, affecting just about all producers, and has only accelerated as the devices have grown in popularity to become a near-$18.5m global market, according to market research by Grandview.

Manufacturers are increasingly turning to security features to protect their brands and customers, amid fears they may be harmed by counterfeits. The latter concern was thrown into stark relief by the outbreak of e-cigarette or vaping product use-associated lung injury (EVALI) in the US that peaked in 2019.

YPB chief executive John Houston said: "Entering such a dynamic new market as e-cigarette and vape hardware is very exciting.

"The industry is large, growing rapidly and has major counterfeit issues. Given the sheer number of OEMs across China, the opportunity for YPB is both ripe and significant," he added.