Background

The European Citizens’ Initiative is a democratic tool meant to benefit individuals, or groups of individuals, with rules in place to exclude companies.³⁴ However, one of the organisers of the ‘Let’s demand smarter vaping regulations’ initiative was Valerio Forconi, Head of EU Corporate Affairs and registered lobbyist for Imperial Brands.¹ Imperial Brands made the initial donation of €10,000 (around GB£8,700) on 8 October 2018, to set up the campaign.¹

PR company Instinctif Partners were contracted by Imperial to promote the campaign (see below).

Imperial’s Aim

The campaign sought to replace the existing TPD regulations with:

“bespoke scientific, evidence-based legislation in line with the functioning of the internal market that distinguishes vaping products from tobacco & pharmaceutical products; (…) Vaping policy should (…) ensure smokers and vapers have clear information and access to tobacco-free less harmful alternatives.”¹

The initiative was launched in April 2019, with the intention of gathering one million signatures in one year from at least 7 EU countries. This would then require the European Commission to consider the request to revoke Article 20.¹³

The accompanying website, set up by Imperial Brands (see below), portrayed it as a “grassroots” campaign to support a change in regulation, by differentiating e-cigarettes from conventional tobacco products.⁵ This is a clear example of ‘astroturfing’, a well-known tactic used by the tobacco industry to interfere with tobacco control legislation.⁶

Others listed as organisers of the initiative included representatives from two e-cigarette trade associations with Imperial as a member (along with other tobacco companies): Michael Kenneally, registered lobbyist and Director of Vape Business Ireland;¹⁷⁸ and Vincent Durieux, President of France Vapotage.¹⁹¹⁰

The main representative of the organising committee was listed as Dustin Dahlmann, from German e-cigarette-business association Bündnis für Tabakfreien Genuss (BfTG), which donated EURO€8,000 to the campaign. BfTG states that it is “tobacco-free” and has no tobacco industry members.^1111213 Another organiser was listed as Mosè Giacomello, from Vapitaly, which organises an annual trade event in Italy, and provided EURO€16,000 in funding to the campaign.¹¹³

Set Up Website to Promote the Initiative

Imperial also set up a website called ‘Vaping is NOT Tobacco’, launched in April 2019, to promote the petition and enable people to sign it direct from the site.³⁵

It also provided forms for visitors to contact their Member of the European Parliament (MEP):

“Don’t hesitate to let them know how vaping products improved your life by helping you switch from tobacco. That way, when they deal with the regulation of these products, they will remember your stand on the topic”.¹⁴

The website listed France Vapotage as a supporter, and stated that it was “promoted by Imperial Brands”.¹⁵Brandon Mitchener, Managing Partner at Instinctif Partners the PR company contracted by Imperial to run the campaign, was listed as the only Team Member of the ‘Vaping is NOT Tobacco’ Facebook page.^3161718 Neither the campaign’s Facebook page nor its Twitter bio (@vapeNOTtobacco) declared a link to Instinctif or Imperial. The campaign press release gave Instinctif Partners as the contact but did not mention Imperial Brands.¹⁹

Despite the direct connection to Imperial Brands, and the involvement of a PR company being paid to run the campaign, the website stated that this “Citizen’s” initiative was a “grassroots campaign” and a “bottom up movement”.⁵ Corporate watchdog Corporate Europe Observatory condemned Imperial’s activities, stating that the tobacco company had:

 “vested commercial interests in getting vaping products excluded from the Tobacco Products Directive and is abusing a democratic tool for citizenship participation”.³

By December 2019, the total number of signatures gathered by the campaign was fewer than 50,000, far short of the one million required.²⁰¹¹

As of 2021 the campaign website no longer existed.²¹

Tobacco Tactics Resources

• Imperial Brands
• E-cigarettes: Imperial Brands
• Instinctif Partners

References

The post Imperial Brands’ Use of the EU Citizens’ Initiative appeared first on TobaccoTactics.

• The EU menthol ban came into force in May 2020. Tobacco companies exploited weaknesses in the ban: the focus on characterising flavours rather than flavour ingredients; product exemptions; and a long phase-in period.
• Prior to the ban menthol use was highest in England and Poland. Menthol had an estimated 20% of the UK cigarette market, in which Imperial Brands and JTI dominate.
• Unlike other EU countries, menthol’s share of the market grew in Poland and the UK after the ban was announced in 2016.
• Tobacco companies, led by JTI and Imperial, were able to exploit the challenges of determining ‘characterising’ flavour, and the omission of cigarillos and accessories from the ban. There are early indications that this has prolonged menthol use post-ban.
• Menthol ban websites promoted newer products, mainly heated tobacco and e-cigarettes.
• In its submissions to the EU, the tobacco industry is minimising the harm caused by flavoured additives by focusing on toxicity rather than addiction.

Regulation of flavours that make smoking more palatable is recommended by the WHO Framework Convention of Tobacco Control (FCTC).²²²³ This page details regulation and interference in the EU in the pre and post the 2020 menthol ban.

For information on the global menthol market, and regulation and interference in other countries see Flavoured and Menthol Tobacco.

Background

Regulation and Interference on Flavour in the EU and UK

An EU-wide ban on the sale of flavoured cigarettes was introduced in May 2016, including menthol, under the 2014 revised European Tobacco Products Directive (TPD), with a May 2016 deadline for EU countries to transpose the TPD into national law.²⁴ While retailers were allowed a year to sell existing stocks of other flavours, the phase-out period for menthol was extended for a further three years, and came into force across the EU in May 2020.²⁵

Weaknesses of the EU menthol ban which could be exploited by industry included:²⁶²⁷²⁸

• not banning menthol as an ingredient
• exemption for most products (as the ban was only applicable to cigarettes – factory made and roll your own) and accessories
• and a four year phase-in period.

Menthol market share in Europe

Prior to the 2020 ban, Euromonitor analysis estimated the whole European menthol market to be worth around EU€9.7 billion (US$11 billion, nearly UK£8.5 billion).²⁹  The relative shares of menthol flavoured cigarettes versus those with capsules (menthol and other flavours) varied; while the market share for capsules exceeded the share for menthol flavoured tobacco in half of EU countries, in others the capsule share was very low or non-existent.³⁰ Menthol and capsule market share has tended to be higher for European countries outside the EU.³⁰

The International Tobacco Control (ITC) survey in 2016 (n=10,000 adult smokers, in 8 European countries) found that the countries with the highest menthol use were England (over 12% of smokers) and Poland (10%); the lowest levels were observed in Germany and Spain (Figure 1).³¹

Figure 1: Prevalence of flavour of cigarettes smoked (usual brand of choice) in 2016 (%).(Source: EUREST-PLUS ITC Europe Surveys)³¹

The ITC figures are supported by 2018 Euromonitor data, which show that the combined market share of menthol and capsules was generally higher in northern European countries, with the highest in Poland, at over 25%, followed by the UK, at over 20% .³²

The UK market

The UK was part of the EU until 31 January 2020.  The 2016 TPD, which included the menthol and flavours ban, was transposed into UK law and remains in place in the UK.  Any future amendments to UK legislation will be made by the UK government.

The UK cigarette market, is dominated by two tobacco companies, Imperial Tobacco (Imperial Brands) and Japan Tobacco International (JTI).³³ According to Euromonitor, in 2019, Imperial had a 44% share of the total cigarette market and JTI 37%, by retail volume. Although it is also based in the UK, British American Tobacco (BAT)’s share was much smaller, at just over 9%. Philip Morris International (PMI) had under 8%, mainly due to its Marlboro brand.³⁴

Prior to the ban, menthol cigarettes formed an estimated 21% of the UK market.³⁰ 2018 figures from the Office for National Statistics (ONS) indicate that there were 7.2 million smokers in the UK; based on the 2016 ITC survey data (detailed above) that would equate to nearly 900,000 smokers who usually smoke menthol cigarettes. According to market research survey based data, the figure was much higher in 2019, nearly 1.6 million in Great Britain,³⁵

Six billion menthol cigarettes were sold in the UK in 2018.³⁶ According to the ITC survey, 17.5% of UK smokers said that they intended to quit after the ban (an average of 16% of smokers in the EU said the same).³¹ As this could reduce annual sales by around 1 billion sticks (3% of the total UK cigarette market), tobacco companies had a clear interest in circumventing the ban and maintaining market share, particularly Imperial and Japan Tobacco International (JTI) (having over 80% of the total cigarette market between them).

See below for a description of the range of tactics used by tobacco companies to exploit loopholes in the legislation and circumvent the EU menthol ban.

• For information on the global market for menthol cigarettes see Flavoured and Menthol Tobacco.

Tobacco Companies Activities to Circumvent and Undermine the Menthol Ban

Lobbying and delay: four year phase-out for menthol

After protests against the TPD from the tobacco industry, and an (ultimately unsuccessful) legal challenge by Poland at the European Court of Justice, supported by Romania, implementation of the ban on menthol cigarettes was postponed to 2020.³⁷³⁸ This was agreed as a four-year transitional “phase-out” period for all flavoured products with more than a 3% market share in the EU, such as menthol.³⁹ (There was a similar ‘sell-through period’, a period when soon to be non-compliant stock can be sold off, when plain, or standardised, packaging was introduced into the UK in 2016, although only for one year).⁴⁰  Romania asked for the ban to be repealed shortly after the TPD was agreed, using evidence from PMI as justification.  JTI officials in Romania were making the same arguments at the time.⁴¹

The relevant wording of the EU TPD menthol ban is as follows:

“Member States shall prohibit the placing on the market of… cigarettes and roll your own tobacco… products with a characterising flavour… including… menthol [or those] containing flavourings in any of their components such as filters, papers, packages, capsules or any technical features allowing modification of the smell or taste of the tobacco products concerned…  However, products with characterising flavour with a higher sales volume should be phased out over an extended time period to allow consumers adequate time to switch to other products… In the case of tobacco products with a characterising flavour whose Union-wide sales volumes represent 3 % or more in a particular product category, the provisions of this Article shall apply from 20 May 2020… The Member States and the Commission may charge proportionate fees to manufacturers and importers of tobacco products for assessing [compliance].” ²⁴

Some member states, such as Germany and Finland, have gone beyond these requirements and prohibit menthol as an additive.²⁸ Hungary has also announced it has plans to ban cigarettes that contain any amount of menthol.⁴²

In early May 2020, tobacco companies were reported to be lobbying for further postponement of the ban in the EU.⁴³⁴⁴ Tobacco industry front group Forest EU were also reported to be lobbying against the ban.⁴⁴ In January 2019 it had described the ban as “unwarranted attack on consumer choice that will do little to deter children from smoking”.⁴⁵ These attempts were not successful. Romania delayed implementing the ban for six weeks in 2020, without informing the EU.⁴¹

Promotion of menthol products through the derogation period

Menthol/capsule cigarettes’ market share began to decline after the EU TPD legislation was announced in EU countries, whereas there was some growth in in countries in the WHO Europe Region which were not EU members. Two exceptions were the UK and Poland, two markets with high proportions of menthol sales.  In these countries there was marked growth in the market share of menthol/capsule cigarettes despite the incoming ban (figure 2).

Figure 2: Tobacco companies increased their sales of menthol in the run up to flavour bans in the UK and Poland (source: TCRG, June 2021)

During this period the tobacco industry promoted new menthol products to UK retailers through the retail trade press. It appears that the tobacco industry was prolonging sales in the ‘phase out’ period in these countries rather than using the period for a phase out of flavours, thus calling into question the necessity of a long derogation (delay to implementation).⁴⁶⁴⁷⁴⁸

Tobacco company buy-back schemes to maximise pre-ban sales

Despite being given four extra years by the EUTPD to get ready for the menthol ban, UK retailer group the Association of Convenience Stores stated, in advice to its members, that there was “no sell-through period”.⁴⁹⁴⁷ Tobacco companies stated that they had, or were planning, ‘buy-back’ schemes, to encourage retailers to sell menthol cigarettes right up to the ban.⁴⁷  However, tobacco companies were slow to inform UK retailers of their plans.

PMI’s UK affiliate Philip Morris Ltd (PML) supplied details of its scheme via a dedicated website, where it promoted PMI’s heated tobacco product (HTP) IQOS as an alternative product, and which required retailer registration (see below).⁵⁰⁵¹ Further details were provided as late as the end of April 2020.⁴⁷⁵¹⁵² BAT said in November 2019 that it would swap small amounts of menthol stock after the ban came into force. However, when approached by trade publication Better Retailing in April, less than a month before the ban, BAT refused to give further details.⁵²

Imperial Tobacco also gave no indication whether or how it would take back excess menthol products, other than that it would “be dealt with on an individual basis”.⁵² It was reported that some retailers had advised others to remove from their product lists those products supplied by companies which would not disclose their plans. Otherwise, they risked being left holding stock which they would not be able to legally sell after 20 May.⁵²

In August 2021, fourteen months after the ban, some retailers were still waiting for the buyback and complaining of a lack of response from attempts to contact tobacco companies. ⁵³⁵⁴

Tobacco companies issued warnings of the risks of the ban leading to illicit trade. JTI, which said it would be buying back excess menthol stock, warned retailers that there was a risk of illicit trade in menthol cigarettes, claiming that “counterfeit menthol products [had been] seized in the UK already”.⁵²⁵⁵ However, Better Retailing stated that this was contrary to information from other tobacco companies earlier in the year.⁵⁵ JTI’s anti illicit trade operations manager said that retailers should warn their customers not to buy fake products, using common tobacco industry arguments around product quality and safety.⁵⁵

For more information see Illicit Tobacco Trade.

Product innovation & promotion of newer products

While the ban applied to cigarettes and roll your own tobacco, other tobacco products were exempt. Menthol accessories were only included in the ban if they were sold within the packaging of cigarettes or roll your own tobacco.⁴⁶⁴⁹

Tobacco companies used product innovation as a way to circumvent the menthol ban and maintain a market for their menthol products, claiming that they were doing so to meet the needs of consumers.²⁹⁵⁶⁵⁷

Tobacco companies used several tactics, including launching product alternatives, in order to circumvent the ban:

• new menthol accessories
• new brands of cigarettes containing some menthol, exploiting the term ‘characterising flavour’
• new cigarette-like cigarillos, other tobacco products (pipe or shisha tobacco)
• menthol and flavour launches for newer products (heated tobacco products, e-cigarettes and nicotine pouches) promoted through ‘menthol ban’ websites

CNTC identified Germany, France, Belgium, Spain and the UK as offering the largest variety of these alternatives in the EU.³² Methods varied by company: Imperial and JTI developed new products; PMI used it as an opportunity to promote its own alternatives. All created ‘menthol ban’ websites or web pages (see below).

New menthol accessories

Tobacco accessories sold separately are not covered by the current TPD regulations, although they can still impart a menthol flavour. The tobacco industry has launched various new accessories since the TPD implementation in 2016, many relating to filters.⁴⁶⁵⁸ Imperial launched menthol roll your own (RYO) filter tips in mid-2017.⁵⁹ In January 2019, it launched a filter tip with a capsule, called “Polar Blast”.⁶⁰

It originally appeared that new filter tips might be an attempt to encourage menthol cigarette smokers to switch to RYO rather than quit. However, IMB introduced a product which enabled it to circumvent the EU ban on pre-inserted flavour capsules in factory made cigarettes. In January 2019, Imperial launched the L&B Blue Bright Air Filter with a recess in the filter and a firm filter structure.⁶¹ Although the launch announcement did not mention it, this filter structure allows a menthol filter tip – designed for RYO – to be inserted.⁶²

Independent company Republic Technologies, which specialises in RYO accessories, also introduced a new menthol filter tip under its Swan brand.⁶³ (Republic Technologies bought Swedish Match UK in 2008, but does not sell tobacco).⁶⁴ These have been advertised with Imperial’s L&B Blue Bright Air Filter cigarettes.⁶²

Packets of flavour capsules are now being advertised to buy separately to be poked into the cigarette filter before combustion in websites targeted at Poland.⁶⁵

Figure 3: Imperial’s Rizla menthol “infusion” cards (source: conveniencestore.co.uk)⁶⁶

Strips of cardboard, known as flavour cards, add flavour to cigarettes when they are added to a pack.  A Finnish firm ‘Frizc’ sells menthol, lime, liquorice and raspberry flavoured cards in Estonia.⁶⁷  The company website states that the packs (which appeared on the market in May 2020) can be used to flavour tea, coffee and oatflakes but do not mention tobacco. However, they are sized exactly for a cigarette pack and retailers can recommend them to smokers.⁶⁷

In January 2020, the launch of Imperial’s “Flavour Infusion cards” in two flavours: “menthol chill” and “fresh mint” was announced (Figure 3).⁶⁸ These cards impart a menthol flavour into factory made cigarettes or RYO tobacco if inserted into product packs.⁶⁹  Imperial stated it was selling 900,000 packs of flavour cards a week by mid-2021.⁷⁰

The point of sale display ban exempts tobacco accessories (including branding) in England and Wales but in Scotland accessories must be hidden like other tobacco products.⁷¹ Imperial have made use of the exemption in England and Wales to recommend that flavour infusion cards are promoted in point of sale displays.⁶⁹⁷² Imperial reported selling 900,000 a week in July 2021.⁷³ Swan, an accessories manufacturer had also launched flavour cards by mid-2021.⁷³ In July 2021, the UK tobacco accessories market was reported to be worth UK£314 million.⁷³

Menthol and other flavour sprays, stones and drops have been developed for soaking filters or cards, and are on sale in the EU,³²⁷⁴ and the UK ⁷⁵⁷⁶

Exploiting the term ‘characterising flavours’

The TPD regulations state that:²⁴

“characterising flavour” means a smell or taste other than one of tobacco which—
(a) is clearly noticeable before or during consumption of the product; and
(b) results from an additive or a combination of additives, including, but not limited to, fruit, spice, herbs, alcohol, candy, menthol or vanilla”

In November 2020, The Bureau of Investigative Journalism, working with the Organised Crime and Corruption Reporting Project (OCCRP) reported uncertainty and confusion in multiple European countries as to the level of menthol flavouring present in cigarettes that could be considered to be characterising.⁴²⁷⁷ They presented evidence that the term ‘characterising’ was used after lobbying from the tobacco industry.⁴² Public health NGO Comité National Contre le Tabagisme (CNTC) accuses tobacco companies of exploiting the ambiguity around the definition of the term ‘characterising’.³²

Determining whether a product has a characterising flavour is difficult. The EU took nearly five years to put a methodology in place; a combination of sensory panels and chemical analyses.²⁸⁷⁷ Slow development of testing, and a lack of firm action, has left a regulatory vacuum for the tobacco industry to exploit. JTI launched products which, when challenged, it claimed did not have a characterising flavour.⁷⁷ The company later changed direction, saying it was able to sell these products because there was no way at the time to test for a characterising flavour.⁷⁷ Other tobacco companies and health campaigners have claimed that these new products do have flavours that would be characterising.⁷⁸ The Direction Générale de la Santé (DGS, the French ministry of health) was reported to be investigating over 300 products suspected of containing prohibited flavours.³² Sweden referred 21 JTI cigarette varieties to the European Commission to test for characterising flavour in June 2020.  In late 2021, the Office for Health Improvement and Disparities (the successor to Public Health England) was reported to be testing products from several manufacturers.⁷⁷

UK

In the UK products began to be released at an early stage. In late March 2020, JTI promoted new ‘dual’ cigarette products with new blends, filters and two sections of 10 cigarettes, to appeal to menthol smokers looking for new products.⁷⁹⁸⁰ However it was unclear what these new ‘blends’ entailed.

JTI also developed a range of “Green” and “Blue” product variations under the same brand names as their menthol cigarettes.⁸¹ The Sun newspaper reported that these products tasted and smelled like menthol, without containing the substance.⁸¹ Scottish Local Retailer published a dedicated  publication for UK retailers in conjunction in conjunction with JTI, called “Making A Mint”, which detailed alternative products including cigarettes made with “distinctive blends” of tobacco but did not mention helping smokers quit; it did recommend selling cigarettes at low prices.(Figure 4 )⁸² These new cigarettes were promoted under the logo “menthol reimagined”, alongside  JTI’s newer nicotine and tobacco products (so called “Next Generation Products”).⁸² (Imperial Tobacco promoted its e-cigarette blu in this publication.⁸² See below for more on tobacco companies promoting newer products as menthol alternatives). JTI also ran an online training course for retailers, which featured their new cigarettes as direct replacements for existing menthol brands.⁸¹

Figure 4: Page from retail publication showing JTI’s alternative cigarettes post-ban.(Source: Scottish Local Retailer/Japan Tobacco International, Making a Mint 2020, PDF supplied by Action on Smoking and Health)

A week before the May ban, Imperial Tobacco announced the launch of new “smooth” variants of their non-menthol brands, called “Bright” and “Green Filter”. The company said this was to “help retailers cater for their menthol and crushball customers when the ban comes into effect, by offering them new innovations from their brands of choice”.⁸³ Imperial also said its research showed that 82% of menthol and crushball smokers would continue to smoke their usual cigarette brand despite reduced levels of menthol, and 70% percent were “expected to switch to a smooth or full flavour variant”.⁸³

Better Retailing reported that, according to information from UK wholesalers, tobacco companies had between them created 29 new product lines to replace menthol products due to be banned, which was confusing for customers.⁸⁴ While colour and branding can be used to promote products to retailers, cigarettes can only be sold in plain packs, and so the only noticeable difference for the customer with these new products would be a slight change of brand variant name.

Ireland

The Irish Times reported that JTI were selling a “green” version of their Silk Cut cigarette brand. JTI argued that this product complied with the ban, even though the company admitted that it used menthol flavouring in its manufacture.⁸⁵ According to the newspaper, JTI stated that they: “conduct robust internal testing processes to determine that the use of flavourings in our products does not produce a clearly noticeable smell or taste other than one of tobacco.”⁸⁵ BAT accused JTI of using the same tactic in France, with new versions of its Camel and Winston brands, to which JTI issued a similar denial.⁸⁶

The Irish Times also reported that PML was advertising a new cigarette in the retail press. Called “Marlboro Bright“, it was described by PMI as a “the Marlboro menthol blend – without methylation”.⁸⁵⁸⁷ PMI later said that this advertisement was a “mistake” and it should have used the phrase “without menthol” rather than “methylation”.⁸⁷ The company insisted that it had “delisted all menthol cigarettes in the UK and Ireland – all of our cigarettes remaining on the market, including our latest variant Marlboro Bright, do not have any menthol in them and are in full compliance with the law”.⁸⁸

BAT also developed new variations under its Pall Mall, Vogue and Rothmans brands which included new blends and changes to filters “providing meaningful differentiation for adult smokers who previously preferred menthol.”⁸⁹⁹⁰⁹¹ A representative of BAT (P.J.Carroll) in Ireland said that it was “not launching any cigarette brands or accessories with menthol-type properties”.⁸⁵

These attempts to adapt products were criticised by the Irish government with a spokesperson stating that the Health Minister believed the issue “should be dealt with at EU level”.⁸⁵

Similar tactics from BAT, PMI and JTI have been noted in the following EU member states: France, Germany, Belgium, Spain, Denmark and Ireland ³², Austria, Czech Republic, Estonia, Hungary,  Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden ⁷⁸

In 2020, JTI’s brands in France,³² and Ireland ⁹² had high sales, suggesting this has been a successful strategy for the tobacco industry.

New ‘cig-alike’ cigarillos

The only part of standardised packs legislation applicable to cigars and cigarillos was a larger health warning; legislation on branding, minimum pack size, and flavourings does not apply. Tobacco companies developed new product variations and promoted these products in the retail press.⁴⁶ From 2020, JTI and/or Landwyck cigarette-like cigarillos were launched in France, Germany, Belgium, Spain, Denmark, Ireland, Romania, Netherlands, Poland and the UK.³²

Figure 5: JTI’s Sterling Dual menthol cigarillo (Source: talkingretail.com)⁹³

Japan Tobacco International 

Stirling Dual Capsules are cigarette-like cigarillos with mentholated tobacco launched in the UK by JTI in early 2020 (figure 5).⁹³ The product contains  a capsule filter which releases a peppermint flavour on crushing.⁹⁴ Stirling is one of JTI’s most popular cigarette brands, which already included capsule options.  The cigarillos were legally allowed to be sold in 10 packs making them  approximately half the price of the cheapest cigarette packs on the UK market. Marketing to retailers framed them as an option to circumvent the menthol ban.⁴⁰⁵⁶ Action on Smoking and Health (ASH) described this as a “cynical” move on the part of JTI, saying that its new cigarillo was essentially “a cigarette wrapped in tobacco leaf”.⁵⁷ JTI, quoted in retail magazine The Scottish Grocer, said that it was “committed to providing retailers with as much choice as possible by launching innovative new products that respond to current trends”.⁹⁵

These cigarillos won retail industry awards and were described as having “a strong performance” and JTI released a 20 stick version in early 2021.⁹⁴ In the second half of 2020, over 45% of cigar sales recorded by the Retail Data Partnership were Sterling Dual Capsule cigarillos.⁷⁷

Scandinavian Tobacco Group

The Scandinavian Tobacco Group, a cigar specialist, launched Signature Dual in February 2020.⁶³⁹⁶ This is a menthol capsule cigarillo, similar to JTI’s Sterling Dual Capsule.

Imperial Brands

In August 2020, Imperial Brands (previously Imperial Tobacco) added a 10-pack of menthol crushball cigarillos to its JPS Players range, with a price comparable to JTI’s product. Imperial’s UK market manager said that this product would: “help bridge the gap left by the ban”.⁹⁷⁹⁸

Impact of new cigarillo variants

According to Euromonitor data, the UK cigarillo market was in decline until the TPD came into force in 2016, but it is now growing. Euromonitor forecasts sales of cigarillos will carry on rising, whereas cigar sales will remain in long term decline.⁹⁹¹⁰⁰

Promoted newer products through menthol ban websites

Tobacco companies used harm reduction as a strategy to achieve their business objectives. In advance of the menthol ban in the UK, they promoted their newer nicotine and tobacco products (heated tobacco products, e-cigarettes and nicotine pouches).

As the UK does not allow open promotion and display of tobacco products, tobacco companies created websites and pages specifically to provide information about the ban to retailers and consumers, in addition to articles in the retail press.^5051100101 Although they are apparently set up to provide information, these websites also help companies to capitalise on the upcoming ban by promoting their newer products.⁸⁰ These include heated tobacco products (HTPs) such as PMI’s IQOS and its HEETS tobacco sticks, to which the ban did not  apply.⁶³⁵²

• For details, see: Promotion of Newer Products Around The UK Menthol Ban

What Next for Menthol in Europe?

Despite industry efforts to boost menthol sales, the upcoming ban appeared to be having an impact on UK smokers’ buying habits, as sales of menthol cigarettes fell in the months before it came into effect. For details see Flavoured and Menthol Tobacco – Do Bans Work.

UK: arguments for retrenchment

Since the EU 2016 TPD came into force, the UK has left the EU (known as Brexit).  Twitter activity and some media reports suggested Brexit could be an opportunity to repeal the menthol ban. ¹⁰²¹⁰³ It is not clear whether the tobacco industry intends to lobby to roll back this legislation after the transition period. However, traditionally the UK has gone beyond EU requirements regarding tobacco control, so repealing would require a change in political consensus.¹⁰⁴ In July 2020, the Secretary of State for Health and Social Care confirmed that “As the ban is part of United Kingdom legislation, it will remain in place when the UK exits the transition period with the European Union”.¹⁰⁵

The UK did not replicate the 2023 EU ban on flavoured heated tobacco products (see below).

Finland: going beyond the TPD

Finland aims to end the use of tobacco and other nicotine products by 2030.  Policy makers have interpreted the 2016 TPD flavour ban as also applying to e-cigarette liquids.¹⁰⁶ There have been court cases in Finland as shops have been selling flavourings labelled for food use, but which have not been tested for possible toxicity when heated and inhaled.  These flavourings are labelled for use with e-cigarettes (vaping) in other countries.  Finnish researchers have called for the EU to reconsider regulation, product notification and prohibition of e-cigarette flavours.¹⁰⁶

Revision of the 2014 TPD

The TPD is under revision, in both the EU and the UK, as scheduled in the legislation. Tobacco industry activity implies that current regulation should be tightened to:¹⁰⁷

• remove the loopholes around characterising flavour by banning menthol as an ingredient;
• extend the ban to all tobacco products, especially cigarillos and other products that are mimicking or replacing cigarettes; and
• consider whether to broaden regulations to include heated tobacco sticks, e-liquids and other new products

As essentially a cigarette wrapped in brown leaf rather than white paper, cigarillos are likely to be very attractive to the tobacco industry; not only are they currently exempt from EU and UK standardised packs legislation, but they are also subject to lower taxes.⁴⁶⁴⁰ It has also been recommended that the ban is extended to waterpipe where flavours are a key attraction and young people, and some European populations have a particularly high level of use.¹⁰⁸

Extending the ban to accessories could be more difficult given their variety, but there are already a bans on  their display at point of sale in Denmark and Scotland.¹⁰⁹¹¹⁰ Some accessories such as cigarette filters, where the tobacco industry has made false health claims, could themselves be banned completely.⁵⁸

Tobacco industry strategies during revision development

Reinskje Talhoot from the National Institute for Public Health and the Environment, (Rijksinstituut voor Volksgezondheid en Milieu, RIVM) in the Netherlands stated that the tobacco industry has been focussing on the toxicity of tobacco additives like menthol. There is little evidence of toxicity and this helps draws attention away from studies that show that menthol encourages young smokers to continue smoking.²⁷

From May 2020, manufacturers were required to disclose additives in tobacco products and additional information about the harmful and addictive effects of 15 priority additives including menthol.  The EU Commission asked an independent group of experts, called WP9 and led by RIVM, to assess the research reports.²⁷ WP9 concluded that there was strong independent evidence that low amounts of menthol (which would be insufficient to make a characterising flavour) still facilitates smoke inhalation making smoking easier for novice (new) smokers.²⁷ WP9 noted that tobacco industry reports did not come to the same conclusion because they left out some independent studies. There were also limitations in the research methods and statistical analyses.²⁷ WP9 therefore concluded that the industry reports were unreliable and should not be used to guide EU member states’ policies. WP9 instead advises that menthol in cigarettes should be banned completely.²⁷

EU ban on flavoured heated tobacco products

Heated tobacco products (HTPs) were exempted from the flavour ban. However, the Commission published a report in June 2022 which found that the sales of HTPs had increased by more than 10% (by volume) in 10 member countries, and were making up over 3% of total tobacco product sales.¹¹¹

This was classified as a “substantial change of circumstances” enabling the Commission to propose a ban on flavoured HTPs, as part of Europe’s Beating Cancer Plan.^{112113 114} The Commissioner for Health and Food Safety, Stella Kyriakides, said:

“With nine out of ten lung cancers caused by tobacco, we want to make smoking as unattractive as possible to protect the health of our citizens and save lives. Stronger actions to reduce tobacco consumption, stricter enforcement and keeping pace with new developments to address the endless flow of new products entering the market – particularly important to protect younger people – is key for this. Prevention will always be better than cure.”¹¹²

After a period of scrutiny, a Delegated Directive was published in November 2022 and entered into force the same month, which banned HTPs with a characterising flavour in any of their components (referring to components closes a potential loophole for flavoured accessories).¹¹⁵¹¹⁶ EU member countries were required to adopt national laws by 23 July 2023, and enact the ban 3 months later, by 23 October.¹¹³ Germany was the first country to pass the ban into law,¹¹⁷

Extended transition period in Italy

The directive included a 3 month transitional period.¹¹⁵ Market analysts Tobacco Intelligence reported that Italy allowed an extended transition period to sell existing stocks of flavoured products: ¹¹⁶

“…manufacturers can supply these to tax warehouses until 31st December 2023, tax warehouses can provide them to retailers until 1st March 2024, and retailers can sell existing stocks.”¹¹⁶

Tobacco industry response

Legal challenges

In January 2023, BAT was granted permission to challenge the ban in the Irish high court (as the Republic of Ireland is part of the EU).¹¹⁸¹¹⁹ BAT stated that the ban would undermine its investment in “products with a reduced-risk profile” and have implications for public health policy.¹¹⁸ In March, Philip Morris Group was given permission to join the legal challenge. Philip Morris did not market HTPs in Ireland at the time, but said it intended to do so.¹²⁰  In October 2023, media reported that the case had been referred to the European Court of Justice, with the tobacco companies accusing the EU of regulatory ‘overreach’.^121122123

Promoted purchases in countries where flavoured HTP sticks continued to be legal

On its website PMI stated that Northern Ireland was affected by the ban, but not the rest of the UK.¹²⁴ It noted that as the ban was on sales, not use,  “[a]dult users may still be able to buy heated tobacco products with a characterising flavour abroad and use them in the EU.”¹²⁵

Tobacco industry journal Tobacco Journal International also highlighted the potential for cross-border purchasing of flavoured products from neighbouring countries without a ban in place.¹²⁶

Launched new nicotine sticks

In the months before the ban came into force, PMI and BAT launched flavoured sticks for using in HTP devices that do not contain tobacco. Instead, the sticks contain nicotine infused leaves (including rooibos tea) apparently developed in order to circumvent the HTP flavour ban.¹²⁷¹²⁸

For details see:

• Newer Nicotine and Tobacco Products: Philip Morris International
• Newer Nicotine and Tobacco Products: British American Tobacco.

TobaccoTactics Resources

• Flavoured and Menthol Tobacco
• Promotion of Newer Products Around The UK Menthol Ban
• EU Tobacco Products Directive Revision
• Flavoured and Menthol Tobacco in LMICs
• Product Innovation
• Newer Nicotine and Tobacco Products

Relevant Links

• STOP statement on the delayed US menthol ban and NGO-instigated legal action
• Menthol tobacco companies are exploiting loopholes in the  UK’s characterising flavours ban, S. Dance & K. Evans-Reeve, Tobacco Control blog, May 2021

TCRG Research

• Effects of and challenges to bans on menthol and other flavors in tobacco products, K. Przewoźniak, C. Kyriakos, R. Hiscock et al,  Tobacco Prevention & Cessation, 2021; 7 (November): 68, doi: 10.18332/tpc/143072
• Tobacco industry tactics to circumvent and undermine the menthol cigarette ban in the UK, R. Hiscock, K. Silver, M. Zatonski, A. Gilmore, Tobacco Control, 18 May 2020, doi:10.1136/tobaccocontrol-2020-055769
• Cigarette-like cigarillo introduced to bypass taxation, standardised packaging, minimum pack sizes, and menthol ban in the UK, J. Branston J, R. Hiscock, K. Silver, D. Arnott, A. Gilmore, Tobacco Control, Online First, 26 August 2020, doi: 10.1136/tobaccocontrol-2020-055700
• A prospective longitudinal study of tobacco company adaptation to standardised packaging in the UK: identifying circumventions and closing loopholes, K. Evans-Reeves, R. Hiscock, K. Lauber K, J. Branston, A. Gilmore, BMJ Open, 2019;9:e028506, doi:10.1136/bmjopen-2018-028506
• Standardised packaging, Minimum Excise Tax, and RYO focussed tax rise implications for UK tobacco pricing, R. Hiscock, N. Augustin, J. Branston, A. Gilmore, PloS one, February 2020, doi:10.1371/journal.pone.0228069

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

The post Menthol Cigarettes: Industry Interference in the EU and UK appeared first on TobaccoTactics.

• For more background, and other types of interference in the run up to the ban, see Menthol Cigarettes: Industry Interference in the EU and UK.

Philip Morris

A leaked Philip Morris International (PMI) document from 2014 indicated that it opposed flavour bans and identified the European menthol ban as a threat to its business.¹²⁹ However, in a presentation in February 2020, it stated that the ban was “not expected to have [a] significant impact”.¹²⁹¹³⁰ CEO Andre Calantzopoulos said that, while menthol accounted for 10% of consumption in the region, this was in fact an “opportunity” for PMI’s heated tobacco product IQOS, as its tobacco sticks (HEETs) were not covered by the ban.¹³¹ In early 2020, Philip Morris actively promoted IQOS as an alternative to menthol cigarettes, to retailers and to consumers.^63132133134 IQOS is more profitable for PMI than its cigarettes.¹³⁵

Philip Morris has only a small market share of the UK cigarette market. Nevertheless, Philip Morris Ltd (PML) set up two websites: menthol-ban-retail.co.uk (aimed at retailers) and menthol-ban.co.uk (aimed at consumers). The consumer-facing website advocated three options for current menthol smokers: to “quit”, “heat” or “vape”.¹³⁶ It also contained market research data, commissioned by PML, stating that, while 15% of smokers would try to quit in response to the ban, over 50% would consider switching to HTPs “once made aware of this option”. While this site mentioned the NHS stop smoking service, and provided a web link, this appeared as a small “disclaimer” at the bottom of the page.¹³⁶ From Philip Morris’ communications with retailers, it appears that the HTPs it referred to were PMI’s own product IQOS, and that its survey participants were shown the device.¹³⁴¹³⁷

Market research conducted in the UK in 2020 found very different figures from PML. A survey by HIM & MCA, reported in retail publication Convenience Store in May 2020, found that only 6% of menthol smokers said they would switch to menthol HTPs, with 16% likely to opt for e-cigarettes.¹³⁸ Another survey by e-cigarette retailer Vape Club produced similar results to HIM/MCA; 39% of UK menthol smokers intended to stop using tobacco products, with 18% planning to switch to e-cigarettes, and 15% saying they would quit use Nicotine Replacement Therapy (NRT) or no product. Assuming no other products, this would mean that only 6% intended switch to HTPs, the same figure arrived at in the HIM & MCA survey.¹³⁸¹³⁹ Both organisations surveyed 1,000 UK menthol smokers, but as of May 2020 no public health survey data was available to confirm these figures. The 2016 ITC survey found that just over 15% of menthol smokers in the UK intended to quit in response to the ban, close to the EU average of 16%.³¹

Figure 1: Screenshot of UK IQOS website, February 2020.¹⁴⁰

Philip Morris also set up a page on its UK IQOS website, containing information about the ban, including a link to an EU trade factsheet.¹⁴⁰¹⁴¹ The page features a “Menthol Ban Countdown” clock; tells customers that “small retailers like corner shops and news agents will likely be running their stock down in time for the ban, so it may become harder to find menthol cigarettes”; and provides links to buy two HEETS menthol products directly from its website.¹⁴⁰ In February 2019, a pop-up offered a trial of IQOS (see figure 1).¹⁴⁰ Retailers were also given material on IQOS to hand out to customers.¹³⁸

In PML’s communications with retailers, it appears that the HTPs it referred to were its own product, IQOS, and that survey participants were shown the device.¹³⁴¹⁴²

In an article published in the trade magazine Talking Retail in mid-March 2020, representatives of PML warned shop owners that they would lose customers and money due to the ban, pointing to a “financial impact calculator” on their menthol ban retail website. An average figure of £13,500 per year was quoted, representing loss of cigarettes sales plus the value of other “basket” items bought at the same time. No evidence was provided in this article to explain how PML had reached this estimate. At the same time the company promoted IQOS starter kits, saying that this was “a massive opportunity for retailers to say to smokers there’s still a product that’s closer in experience to cigarettes”.¹³⁴ PML suggested that retailers could register on its website to access these kits, and that this was where they would be able to find information about the company’s buy-back scheme for unsold menthol cigarettes.¹³⁴⁵²

Retailers were also offered a series of financial incentives to stock IQOS, through its “Heetwave Open” programme. An e-mail sent from PML to retailers in early May 2020, encourage them to “Sign up and earn £170+”.¹⁴³ In addition to free HEETs products and money for registering sales of IQOS kits, they were offered money for completing quizzes, watching promotional videos, and uploading images of point of sale material.¹⁴³ According to the Bureau of Investigative Journalism, PML also hired sales representatives to promote IQOS directly to convenience stores, as part of its efforts to reach a target of a 400% increase in sales of IQOS and HEETS in 2020.¹⁴⁴ PML continued to promote IQOS as an alternative to menthol cigarettes after the ban.⁸⁸ In 2021, it combined menthol with other flavourings in its Mauve HEETS variant, which PML described as “a crisp menthol blend with a taste of dark forest fruits”.¹⁴⁵

Since the menthol ban PMI have withdrawn their Nicocigs and IQOS Mesh e-cigarettes from sale in the UK, along with Veev liquids. For more on PMI’s newer IQOS VEEV e-cigarette, yet to be launched in the UK as of November 2021, see E-cigarettes: Philip Morris International

Japan Tobacco International

Japan Tobacco International (JTI) set up a menthol ban section on its retailers’ website (jtiadvance.co.uk), which was promoted in the retail press.^8084146

This trade website also contained information for consumers, recommending JTI’s newer nicotine products, with links to websites selling its Logic e-cigarettes and Nordic Spirit nicotine pouches.⁸⁰¹⁴⁶ It also warned consumers against turning to illicit tobacco.¹⁴⁶

Imperial Brands

Imperial Brands, while not setting up specific web pages, offered advice to retailers in the UK trade press.¹⁴⁷ Imperial’s Corporate Affairs Director, Duncan Cunningham, in Talking Retail, linked the ban to potential sales of roll-your-own (RYO) products:¹⁴⁷⁸²

“As a result of the forthcoming changes, we may see some menthol smokers shift into buying RYO products, especially given the arrival of recent product innovations, such as Rizla Polar Blast crushball tips, that will help them continue with their flavour of choice.”

Cunningham also suggested that retailers should increase their stock of the company’s blu  e-cigarette, including its nicotine salt e-liquids to “help heavy smokers switch”.¹⁴⁷⁸²

British American Tobacco

British American Tobacco (BAT) promoted its e-cigarette Vype in the retail press before the ban, and launched new mint e-liquid flavours.⁸⁹⁹⁰⁹¹

European websites

Similar dedicated menthol web pages appeared in France for IQOS from PMI, Vuse from BAT and Logic from JTI. CNTC suggests these were marketing sites rather than information sites.³²

TobaccoTactics Resources

• Menthol Cigarettes: Industry Interference in the EU and UK
• Flavoured and Menthol Tobacco
• Product Innovation
• Newer Nicotine and Tobacco Products

Relevant Links

• Menthol tobacco companies are exploiting loopholes in the  UK’s characterising flavours ban, S. Dance & K. Evans-Reeve, Tobacco Control blog, May 2021

TCRG Research

• Tobacco industry tactics to circumvent and undermine the menthol cigarette ban in the UK, R. Hiscock, K. Silver, M. Zatonski, A. Gilmore, Tobacco Control, 18 May 2020, doi:10.1136/tobaccocontrol-2020-055769

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

The post Promotion of Newer Products Around The UK Menthol Ban appeared first on TobaccoTactics.

Since the early 2000s TTCs have developed interests in e-cigarettes (also known as electronic delivery systems, or ENDS), heated tobacco products (HTPs), snus and nicotine pouches. Companies have referred to these types of products as ‘next generation products’ (NGPs) although terminology changes over time.

• See the product terminology page for more details, including terms favoured by the industry.

All of the ‘big four’ TTCs (PMI, BAT, JTI, Imperial Brands) have invested in Swedish-style snus and related products called nicotine pouches, which they have promoted as part of their harm reduction strategies.

Background

Nicotine pouches are similar to snus pouches as they are made to be placed between the lip and gum, and do not require spitting. However, nicotine pouches do not contain fresh tobacco leaf but a form of dehydrated nicotine that does not need to be kept cold.¹⁴⁹ The pouches also generally contain plant fibres, flavourings and sweeteners.¹⁵⁰ Nicotine is absorbed into the bloodstream via the mucous membranes in the mouth.¹⁴⁹¹⁵⁰ They are not new products and similar oral pouches with contents other than nicotine have been available in Sweden for many years, regulated as food.¹⁵⁰

TTCs have identified opportunities to market these products in countries where there is either an existing market for snus, or conversely in markets where tobacco snus is currently banned.¹⁴⁹

Researchers have cautioned that nicotine pouches in particular may appeal to youth and non-smokers, as they are often sold in a variety of fruit flavours, in attractive packaging, and can be used discreetly (more so than e-cigarettes).¹⁴⁹¹⁵¹  They can also contain high levels of nicotine where unregulated.¹⁵¹

“Tobacco Free”

It appears that some nicotine pouches, may use synthetic, or “tobacco-free”, nicotine (rather than nicotine derived from tobacco leaf),  creating confusion and uncertainty as to how best to regulate these products.^149152153154

In its 2022 annual report, BAT states that its “current portfolio contains no synthetic nicotine”.¹⁵⁵ PMI states that its pouches contain “nicotine derived from tobacco”.¹⁵⁶ JTI and Imperial Brands do not refer to synthetic nicotine and describe their pouches as “tobacco-free”.^157158159160

In 2022, the UK independent scientific Committee on Toxicity (COT) noted in a discussion paper:

“the apparent variation in how manufacturers present nicotine content and strength across different products, which may be confusing for the consumer. In addition, use of the description ‘tobacco-free’ may be misleading as the nicotine may be derived from tobacco, which raises concerns regarding carry over of toxicologically relevant contaminants (e.g., metals and nitrosamines).”¹⁶¹

COT also raised concerns around the lack of specific regulations for nicotine pouches in the UK, and the absence of data other than that produced by the industry.¹⁶¹ COT planned to produce a full report for the UK government in autumn 2023.¹⁶¹

See below for more on regulation.

Figure 1: Images of nicotine pouch brands owned by the largest tobacco companies as of 2023. (Source: TCRG. Product images from company websites)

Cigarette Companies Investing in Nicotine Pouches

The interests of the four main TTCs are summarised below, as well as those of Altria which also sells nicotine pouches outside the US. PMI was the last to acquire this product through its purchase of Swedish Match in 2022.

British American Tobacco

In 2019, BAT introduced nicotine pouches to its portfolio, marketing them as Lyft in the UK and Velo in the US.^162163164 A July 2019 news report suggested that BAT’s nicotine pouches were also on sale in Sweden, Italy and Tanzania.¹⁶⁵ BAT started  promoting Lyft /Velo in “emerging markets” in LMICs (see below).

In November 2020, BAT announced that it had acquired US-based nicotine pouch company Dryft Sciences, via its subsidiary Reynolds American Inc. (RAI), with the pouches to be sold under the Velo brand.¹⁶⁶ According to BAT this would give them a combined share in the US nicotine pouches market of around 10%.¹⁶⁶

BAT distinguished Epok, Lyft and Velo from traditional snus and allocated them to a new product category, which it called “modern oral products”.¹⁶² In November 2019, it announced that it would consolidate its NGPs under fewer brand names, and all its “modern oral” products would be sold as Velo.¹⁶⁷ It continues to market the product as Lyft in Sweden and Denmark.¹⁶⁸ It also sells nicotine pouches under its Niconovum brand Zonnic in Sweden.¹⁶⁹

BAT reported that it had sold 4 billion pouches worldwide in 2022, and held 69% of the market in Europe, although sales in the US had declined since 2021.¹⁵⁵¹⁷⁰ It also referred to an estimate that the global nicotine pouch market would grow by 500% by 2026, and referred to the launch of new products ranges called Velo Mini and Velo Max.¹⁵⁵ In 2023, BAT said that Velo was leading the market outside of the US and contributing to revenue growth.

In 2024 BAT reported that it had opened a new “innovation centre” in Southampton, UK, to focus on the development of nicotine pouches.

• For information on BAT’s other nicotine products see Newer Nicotine and Tobacco Products: British American Tobacco

Japan Tobacco International

Japan Tobacco International sells its  Nordic Spirit brand of nicotine pouches, mainly in Europe.¹⁷¹¹⁷² In its 2020 integrated report Japan Tobacco stated that the pouch was sold in nine countries, and that it held 70% of the UK market.¹⁷³¹⁷⁴ In 2021, it said that it “prioritized Sweden, Switzerland and the UK”.¹⁷⁵ In 2022, JTI announced that it had test-launched Nordic Spirit in the Philippines and was planning to launch a new “formula” in the UK.¹⁵⁸ In 2023, new strong and extra strong spearmint flavoured pouches went on sale in the UK, to meet the “demand for stronger variants”.¹⁷⁶ According to the Nordic Spirit website its extra strong pouches contain 11mg per pouch (17mg per gram).¹⁷⁷

JTI also refers to its nicotine pouches as “modern oral” products.

• For information on JTI’s other nicotine products see Newer Nicotine and Tobacco Products: Japan Tobacco International

Imperial Brands

In May 2018, Imperial Brands announced that it had launched a version of its snus brand Skruf without tobacco leaf, called Skruf Super White, intended for sale in Sweden and Norway.¹⁷⁸ This product appears to have been rebranded as zoneX for the UK market in August 2019, however its direct sale in the UK was later discontinued.^{179180181  182} In 2022 Imperial’s website stated that in 2021, ZoneX  had “first launched in Sweden and Austria”, further launched in “Norway, Denmark and Estonia” in 2022 and finally made available in “Iceland and duty-free Middle East” in 2023.¹⁵⁹¹⁶⁰

In 2020, IMB had previously published an article on its Imperial Science website exploring what it described as “The Tobacco-Free Nicotine Pouch Opportunity”.¹⁸³They later said they had launched a “cutting edge bamboo fibre based product”.¹⁸⁴

Imperial’s website describes ZoneX users as:

“young adult nicotine users, typically 25+, urban and open-minded. They’re making lifestyle changes and favour a discreet way to enjoy nicotine.”¹⁶⁰

In 2023, Imperial acquired several nicotine pouch brands from Canadian company TJP Labs, to market in the US.¹⁸⁵

Altria

In 2019 Altria announced that it was acquiring an 80% share in oral nicotine pouch on! from Swiss tobacco company Burger Sohne.¹⁸⁶¹⁸⁷ It set up a new subsidiary Helix Innovations, through which it would manufacture and market the product.¹⁸⁶¹⁸⁷ Altria stated that, as on! was already on sale across the US before August 2016, it did not require pre-market authorisation from the US Food and Drug Administration (FDA).¹⁸⁶ However, by mid-2020 it had submitted 35 Pre-Market Tobacco Product Applications (PMTA) for on!, it was sold in 40,000 US stores, and Helix was increasing manufacturing capacity.¹⁸⁸ According to Altria, by the end of 2020 the number of stores selling on! had nearly doubled.¹⁸⁹ A 2020 investor transcript reported that the product was “attracting female tobacco consumers due to its spitless, white and compact format” and accounted for 30% of this type of oral nicotine product.¹⁹⁰

In 2021, Altria acquired the remaining 20% of on!.¹⁹¹ In 2022, it stated that it held over 20% of the UK nicotine pouch market, although the category was “increasingly competitive”.¹⁹² It also stated that Helix operates internationally, although most of its oral products are sold in the US.¹⁹² As of February 2023, the FDA had not issued marketing order decisions for any on! products.¹⁹²

Philip Morris International

At the beginning of 2021, PMI did not have a nicotine pouch product on the market. However, in a presentation to investors in February that year, the company noted the “attractive economics” of this small, but growing, product category.¹⁹³ CEO Andre Calantzopoulos said PMI was planning to develop a product through a “combination of partnerships and internal development”.¹⁹⁴

In May 2021, PMI acquired Danish snus manufacturer AG Snus, manufacturer of Shiro nicotine pouches.¹⁹⁵¹⁹⁶ For more details see Cigarette Companies investing in Snus.

In July 2021, PMI announced that it had acquired Fertin Pharma, a company specialising in nicotine replacement therapy (NRT) type products.¹⁹⁷ At this time, PMI also began referring to gums and nicotine pouches as “modern oral” products, as BAT and JTI do.¹⁹⁷

• For more information see: Tobacco Company Investments in Pharmaceutical & NRT Products

At this time, PMI began referring to gums and nicotine pouches as “modern oral” products (as does BAT).¹⁹⁷

In 2022, PMI acquired Swedish Match.¹⁹⁸ Swedish Match specialises in snus and nicotine pouches, and does not sell cigarettes. By 2023, Shiro nicotine pouches were presented on the PMI website, along with snus, as “oral smokeless products”.¹⁹⁹ Its nicotine pouch Zyn has been sold mainly in Sweden and some other European countries, as well as the US (since 2015).²⁰⁰ It also sells the Volt Pearls product in Denmark, Iceland and Sweden.¹⁵⁶

• For more information see Newer Nicotine and Tobacco Products: Philip Morris International and Swedish Match

In its 2022 annual report, PMI stated that the Zyn trademark had an “indefinite life due to the fast growth and the leading position of the brand in the market”.¹⁵⁶

The Global Market

According to a Tobacco Reporter article published in 2024, Euromonitor International values the global market at over US$10 billion and projects it to reach US$15 billion by 2027.²⁰¹ Nearly 15 billion units were sold in 2023, but they remain a small part of the market.²⁰¹

In 2023, Euromonitor analysts noted that in the US, there were over US$8.5 billion of retail sales and nearly 3% of the population uses pouches. However, the most rapid increase in sales in 2023 was in Pakistan where BAT markets Velo (see below), and they expect most growth going forward to be in Asia Pacific and Eastern Europe.²⁰¹ They also noted that most pouches were sold in the US in 2023, the other top five markets (Sweden, Denmark, Pakistan and Austria) between them sold less than a third of the units sold in the US market.²⁰¹ Other nicotine pouch markets include UK, Germany, Poland, Czech Republic, Uzbekistan, Ukraine and Indonesia.²⁰¹²⁰²

PMI’s purchase of Swedish Match immediately gave it a 60% share of the global market in 2022, a jump from almost zero in 2021. BAT held around a sixth of the global market, and Altria and Swisher (a US-based tobacco company which also sells cigars, snus and snuff, and other nicotine products)²⁰³ each held around a twelfth share.²⁰⁴ The global market shares of other companies, including JTI and Imperial Brands, were negligible.

• For information on TTC interests in tobacco leaf snus see Cigarette Companies Investing in Snus.

Regulation of Nicotine Pouches

Nicotine pouches are subject to a variety of regulations around the world, from outright bans to partial or selective regulation, depending on how they are defined and classified by governments. In many cases no regulation is in place. The Institute for Global Tobacco Control (IGTC) tracks and reports regulatory approaches around the world (see below).²⁰⁵ Although not all countries contribute to its Policy Scans for nicotine pouches, the most up to date information available on the IGTC database at the time of writing is referenced below.

In the UK, as of 2023, nicotine pouches are regulated under general consumer product safety regulations, not as tobacco products. They are widely available in shops and online.^161205206 Concerns have been raised over their availability to youth, and social media marketing.^161207208 The UK Department of Health and Social Care stated that it was aware of concerns, but as the use of pouches was low (in England) it did not plan to introduce further regulation at this time.²⁰⁸

European Union

While there is an EU-wide ban on tobacco snus, nicotine pouches are not covered by current tobacco product regulations. This is subject to review in the next revision of the Tobacco Products Directive.²⁰⁹²¹⁰ It is however important to note that individual member countries are diverging in the way they regulate these products.

Sweden has an exemption from the EU ban on snus.²¹⁰ In Sweden, pouches containing products other than tobacco and nicotine have long been regulated as food items.¹⁵⁰ Zonnic oral pouches (owned by RAI from 2009,²¹¹ and BAT from 2017) were registered as an over-the-counter (non-prescription) drug in 2013, but only available from pharmacies and other regulated outlets.²¹² There are a range of nicotine replacement therapies (NRT) products registered under the same brand name (see below). In 2019, the Swedish National Food Administration advised that nicotine pouches should now not be regulated as food, as they were intended to be spat out and the contents were mostly absorbed through the mouth, not the stomach.¹⁵⁰

Elsewhere in Europe regulation varies widely. In France nicotine is classified as a poisonous substance, subject to regulation, but pouches can be regulated as a medicine for cessation purposes.²⁰⁵ In Finland nicotine pouches are no longer classified as medicines, unless marketed as such.²¹³ In Norway (not in the EU but a member of the European Economic Area) a total ban on nicotine pouches and other newer products was lifted in July 2021, and replaced by a market approval scheme.²¹⁴²¹⁵ Both tobacco-derived and synthetic nicotine pouches are regulated, but advertising and sponsorship are banned.²⁰⁵

In contrast, in March 2023, Belgium announced a total ban on nicotine pouches, by royal decree.²¹⁶²¹⁷ BAT were reported to be petitioning the courts to annul the decree.²¹⁸ The Netherlands announced a ban a month later.²¹⁹²²⁰

In 2021, the German Office of Consumer Protection and Food Safety (BVL) stated that nicotine pouches were not regulated under either the tobacco legislation or as foodstuffs and so could not be legally sold.²²¹ BAT removed its nicotine pouches from the German market that year.²²¹ Some federal states have withdrawn pouches, and some products have been classified as a health hazard due to high levels of nicotine.²⁰⁵

North America

In the US, nicotine pouches are regulated by the FDA and subject to age restrictions, a nicotine health warning and pre-market assessment .²¹⁰ There are also regulations specific to synthetic nicotine.²²² Nicotine pouches are freely available to consumers.²⁰⁰ US researchers have noted a “loophole”: as nicotine pouches were not included in the smokeless tobacco regulation, companies are able to advertise nicotine pouches on radio, TV and other media.²²³

Initially the Canadian government did not authorise the sale of nicotine pouches, and issued an alert, stating that as they had not been assessed by “safety, efficacy and quality” they might contain high levels of nicotine and be harmful to health.²²⁴ These products are now regulated, either classified as a ‘Natural Health Product’ or as a prescription drug, depending on the level of nicotine.²⁰⁵ In July 2023, Health Canada authorized the marketing of BAT’s Zonnic nicotine pouch (with 4mg of nicotine) as a natural health product.^225226227228 Physicians for a Smoke-Free Canada reported that this product contains the same ingredients as BAT’s Velo,²²⁷ and noted that:

“BAT will face very few restrictions on how it can market ZONNIC nicotine pouches in Canada, other than with respect to how it represents the therapeutic benefits of the product.”²²⁷

Australia & New Zealand

As with e-cigarettes and heated tobacco products, nicotine pouches are banned from sale in Australia, and only available on prescription.²⁰⁵

In New Zealand, oral tobacco products (including snus) and nicotine pouches are banned, unless approved as medicines.²⁰⁵ (E-cigarettes are regulated, but not banned)

New and emerging markets

In some low and middle-income countries, including Argentina, Bangladesh, Georgia, Indonesia, India, and Nigeria, only tobacco-derived products are regulated as tobacco products, but not those derived from synthetic nicotine.²⁰⁵ In others, including Brazil, Brunei Darussalam, Iran, and Thailand, both are regulated as tobacco products.²⁰⁵ In Ukraine there are no specific regulations in place, but synthetic nicotine pouches are regulated as a food product.²⁰⁵ Mauritius bans both,²⁰⁵ whereas in Uruguay, nicotine pouches are categorised as a form of nicotine replacement therapy (see below).²⁰⁵

At the time of writing, July 2023, nicotine pouches remain unregulated in most countries.²⁰⁵

As researchers from Norway, among others, have pointed out:

“The boundaries between various tobacco and nicotine products are getting less clear, making it possible for the tobacco and nicotine industries to take advantage of the discrepancies in regulation.”¹⁵¹

• The Policy Scan Project, by the Institute for Global Tobacco Control (at Johns Hopkins University), which tracks and reports regulatory approaches to nicotine pouches around the world.
• For information on tobacco regulation more broadly, see the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK).
• For countries that are parties to the WHO Framework Convention on Tobacco Control (FCTC) progress towards implementation of relevant articles, including newer products, is detailed in the FCTC implementation database.²²⁹

BAT Promoting Nicotine Pouches in LMICs

BAT began marketing Lyft in Kenya in 2019, and Pakistan in 2020. In 2021, BAT said that it was also test marketing its product in Bangladesh and Indonesia.²³⁰ and “consumers are familiar with other similar oral products”.²³¹ The company has identified an opportunity to market these products in countries where electronic devices are less popular, affordable, or available due to regulatory restrictions. It also referred to markets where there is was a “pre-existing ritual of oral product consumption”.²³⁰²³¹

Kenya

After announcing its intention to sell nicotine pouches in Kenya, BAT launched Lyft in the country in December 2019.^165232233 In February 2020, the company announced that it was planning to build a new factory in Nairobi to produce nicotine pouches, and for Kenya to become a regional export hub for the product.²³⁴ BAT Kenya (BATK) managing director, Beverley Spencer-Obatoyinbo said that “Given the high incidence of oral stimulant use among smokers, we believe that this new product category will provide a viable alternative to smoking”, although she presented no evidence at the time to support this statement.²³⁴

In response to concerns about the potential impact on tobacco farmers, Business Daily Africa reported that BATK’s head of legal and external affairs stated that the company was “using proceeds from the tobacco portfolio to invest in the new categories. When the time comes, we will help them (farmers) transition to sustainable crops,” although this was “not a change that can happen overnight”.²³⁵ Spencer-Obatyoinbo confirmed that BAT switching to “non-combustibles” was “not an immediate thing”.²³⁵ Nevertheless, in September 2020, BAT was reported to be lobbying the Kenyan Revenue Authority (KRA) for a tax break for the product, citing its large investment and potential exports.²³⁶ (According to BAT the nicotine for its pouches is currently manufactured in Switzerland.)²³⁶ The Chief Executive of the International Institute for Legislative Affairs argued that this would be a “huge setback for tobacco control interventions in Kenya”.²³⁷ For more information see the Kenya country profile page.

Nicotine pouches were initially registered as a pharmaceutical product by the Kenya poisons board.²³⁸ This designation was challenged by local advocates.²³⁸ Health Cabinet Secretary Mutahi Kagwe wrote to the poisons board, arguing that the product had been wrongly designated, and stated that it was being distributed via vending machines in contravention of the law.²³⁸²³⁹ Although Lyft was de-registered and effectively banned, there was a reported lack of enforcement and the product was found to still be on sale in December 2020.²³⁹²⁴⁰ In February 2021, the Kenyan government said that it was intending to classify nicotine pouches as a tobacco product under the Tobacco Control Act, making the product subject to similar marketing restrictions as cigarettes and other tobacco products.²³⁹ Concerns have been raised in Kenya over potential use by children (see below).

In February 2021, BAT told investors that “In Kenya, we have temporarily suspended sales due to local regulatory challenges and continue to engage with the local authorities.”²³⁰ In March it told the Kenyan media that it was planning to spend Kenya Sh1 billion (US $10 million) on marketing Lyft once the product was approved.²⁴¹ This included plans to set up distribution networks across 21 countries in the Common Market for Eastern and Southern Africa (COMESA).²⁴¹

In 2022, BAT’s nicotine pouch was back on the market in Kenya, as Velo.²⁴² In its annual report, BAT stated it had “reintroduced Velo to a limited retail universe with positive early momentum, as we focus on driving guided trial.”¹⁵⁵

The introduction of Velo has not been without controversy, and politicians in Kenya are again asking for the product to be banned. Letters between BAT and the Kenyan Ministry of Health reveal that BAT had lobbied to reduce the size of warning labels on the product.²⁴³

BAT has also lobbied against increased taxes on these products.^244245246

Pakistan

Velo was launched by BAT in Pakistan in December 2019, with a campaign run by Ogilvy Pakistan “positioned towards affluent adult consumers”.^247248249

A Freedom of Information Request submitted by Bath TCRG revealed that UK High Commission staff in Pakistan had attended a “social event” for Velo in February 2020. The FOI stated that “They were invited by the event coordinator and did not meet any Velo representatives at the event.”²⁵⁰

• British diplomats have previously been associated with lobbying by BAT in Pakistan, and other LMICs. See the page on UK Diplomats Lobbying on Behalf of BAT

BAT said it was “particularly proud of Velo’s performance in Pakistan”. ¹⁷⁰ In its 2022 annual report, BAT stated that Pakistan was its third largest market for nicotine pouches. It said that the market was “enabled by powerful, consumer-centric digital activations”, and that it was selling over 40 million units a month.¹⁵⁵ These sales figures, and rapid growth, are roughly consistent with Euromonitor’s estimates.²⁰⁴

South Africa

Unlike NRT products, nicotine pouches are not on the South African Health Products Regulatory Authority’s list of approved medicines, for which it would be subject to clinical trials and regular monitoring updates. Nicotine pouches are also not regulated as tobacco products because the nicotine is synthetic and does not fall under the definition of tobacco products in the Tobacco Products Control Act (2018). This means that they can be sold without health warnings and can be sold to those under the age of 18.²⁵¹

South Africa is also one of the target markets for PMI’s ZYN nicotine pouches. ²⁵²

Indonesia

In February 2021, BAT referred to the test marketing of its nicotine pouches in Indonesia.  BAT reported “encouraging results”.²³⁰ External statistics suggest the market remained small.²⁰⁴

Concerns Around Use by Youth

Researchers in the US have identified the risk of nicotine pouches appealing to non-smokers and in particular youth, as some products come in a range of fruit flavours and are more discreet than e-cigarettes.¹⁴⁹²⁵³ As of 2024, PMI was facing a lawsuit for ZYN in the US on the basis of the product being addictive and harmful to young people. The lawsuit states that PMI is benefiting from the promotion of the brand on social media. ²⁵⁴The FDA has also issued warning letters and penalty charges to a number of retailers for the underage sale of flavoured ZYN nicotine pouches. As of April 2024, the FDA has not authorised the sale of ZYN products in the United States. ²⁵⁵²⁵⁶

Although they can only legally be sold to adults in the UK, concerns have been raised over potential use by children.¹⁶¹²⁵⁷

In 2020, there were reports that Lyft was being used by children in Kenya.²³⁴²⁵⁸ Children were also reported to be using the products in schools in Scotland.²⁵⁹

In February 2021, journalists from the Bureau of Investigative Journalism published an article describing how BAT used social media influencers to promote its nicotine pouches in multiple countries, including Australia, Kenya and Pakistan. The authors argued that this was part of a campaign targeted at young people, rather than older adults trying to quit smoking.^260261262

An investigation by The Guardian newspaper in 2023 identified further promotion in the UK via social media and music events, as well as prize draws and the provision of free samples.²⁰⁸

BAT also promotes Velo through motorsport sponsorship.²⁶³²⁶⁴

• See Snus: Marketing to Youth for information on earlier tobacco company marketing of the tobacco leaf product.

Industry Alliance Lobbying in the EU

The ‘Nordic Nicotine Pouches Alliance’ (NNPA) was established in Belgium in 2020.²⁶⁵ As of March 2024, BAT and JTI are the only partners listed on the NNPA website.²⁶⁵

The NNPA webpage states “We engage, inform, and increase knowledge about nicotine pouches”.⁵  However, on the EU transparency register, its stated goal is to “focus on regulation concerning nicotine pouches within the European Union”, specifically the Tobacco Products Directive and the Tobacco Taxation Directive.²⁶⁶²⁶⁷ Jonas Lundqvist, NNPA CEO, is listed as the accredited lobbyist on the EU register.^268266267 In 2022, the estimated cost of NNPA lobbying activities was listed as €400,000-499, 999, four times the amount listed in 2021.²⁶⁶²⁶⁷

NNPA also runs the online news platform ‘Pouchforum’.²⁶⁹ Articles published on the platform have accused the European Commission of misrepresenting the risk of nicotine pouches,²⁷⁰ and suggested that the Commission does not act in a transparent manner.²⁷¹ The site editor is Robert Casinge, also ‘Senior Partner’ in the NNPA, and previously listed as a lobbyist on the EU register.²⁶⁷²⁷²

Framing Nicotine Pouches as NRT

TTCs appear to be framing their nicotine pouches as a nicotine replacement therapy (NRT), which is designed to help smokers quit.^273274275 However, they are also marketing them as consumer products, including for use when it is not possible to smoke or use e-cigarettes, for example on a plane. ^276277278

In 2016, researchers in the US pointed to the implications for both product regulation and smoking cessation,²¹¹ and the:

“blurring of the lines between cessation products and novel tobacco products and potentially confusion and misuse by consumers which may result in initiation or situational and dual use of tobacco products.”²¹¹

All four of the main transnational tobacco companies have conducted their own research on nicotine pouches, published on their science websites.

BAT markets Niconovum NRT products, in the US and Sweden under the brand name Zonnic; in Sweden, Zonnic products include nicotine pouches.^169279280 In 2020, BAT also rebranded its Revel nicotine lozenge as Velo – the same brand as its nicotine pouch – in the US (and submitted it for pre-market approval). ²⁸¹²⁸²

In its 2022 annual report, BAT stated that “[t]he weight of evidence suggest Modern Oral nicotine pouches have a profile that is comparable to nicotine replacement therapy products”. It cited BAT’s 2021 research on Velo, which compared snus, nicotine pouches and NRTs.¹⁵⁵²⁸³ However, the 2022 report then went on to acknowledge “low levels of average daily consumption and high poly-usage”, leading BAT to submit a further PMTA for a “superior” product.¹⁵⁵ As of February 2023, no Velo products had received pre-market approval in the US.¹⁵⁵ At the time of writing, it was not yet clear how BAT planned to promote its Zonnic nicotine pouch after it was approved for sale over-the-counter in Canada in July 2023.^225226228

BAT’s science website presents its research on nicotine pouches, as well as a summary of the ‘Snus and the Swedish Experience’.²⁸⁴ For more background on this topic see The Swedish Experience.

PMI acquired Fertin Pharma in 2021, stating that Fertin was a “leading producer of Nicotine Replacement Therapy (NRT) solutions”.¹⁹⁷ PMI has also referred to the “medical” or “pharmaceutical” grade nicotine in its products.¹⁵⁶²⁸⁵ (Read more about on PMI’s acquisition of pharmaceutical companies.)

PMI’s science website presents its research on nicotine pouches.²⁸⁵ It does not refer to its snus products on these pages.^285286287

Imperial Brand’s science website has cited evidence on tobacco-leaf snus and other next generation products (NGP)s to support its statement that “these products are more satisfying – and acceptable – to adult smokers than traditional nicotine replacement products (NRTs) like patches, lozenges, and gums”.¹⁸³  However, the evidence it cites pre-dates the widespread sale of nicotine pouches by TTCs: the 2016 report from the Royal College of Physicians (RCP) refers only to Zonnic and does not discuss satisfaction of acceptability of the product.²⁷⁵

Imperial refers to its use of “high purity pharmaceutical grade nicotine”.¹⁸³²⁸⁸ In May 2021, Imperial published its “comprehensive scientific assessment” of its nicotine pouches, in comparison to cigarettes.²⁸⁹

Japan Tobacco‘s science website does not feature nicotine pouches, although it includes  its research on these products.²⁹⁰

Environmental Impact

The impact of cigarette filters on the environment is well documented. More recently, the impact of single use, or ‘disposable’, e-cigarettes has been highlighted

As the nicotine pouch market grows the disposal of these single use products is an emerging concern.²⁹¹²⁹²

On its website, BAT states that the Velo plastic cans are being upgraded to use single polymer plastics in order to “align with the group’s ESG ambitions”. ²⁹³

TobaccoTactics Resources

• Snus
• Cigarette Companies Investing in Snus
• Newer Nicotine and Tobacco Products
• Harm Reduction

TCRG Research

• S. Peeters, A. Gilmore, Understanding the emergence of the tobacco industry’s use of the term tobacco harm reduction in order to inform public health policy, Tobacco Control, 2015,24(2):182-189

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.

References

The post Nicotine Pouches appeared first on TobaccoTactics.

Background

Komoróczki began his career as a diplomat for the Hungarian Ministry of Foreign Affairs, travelling across Europe and the former Soviet Union from 1979 until 1996.²⁹⁶

Career with Tobacco Industry

Komoróczki began working at Imperial Tobacco Hungary Ltd. in 2002 as Corporate Affairs Director. In 2010, he was promoted to European Director of Regulatory and Corporate Affairs in Belgium. From 2010 to 2013, he was based at Imperial’s EU Affairs office in Brussels.²⁹⁶

Career in Diplomacy and Government

After leaving Imperial in June 2013, Komoróczki returned to Hungary to work as the Minister of State Secretariat for Planning Coordination in the Ministry for National Economy until 2014.²⁹⁷ In 2015, he became Advisor to the President of the National Federation of Consumer Co-operative Societies and Trade Associations (AFEOSZ-COOP), Hungary,²⁹⁸ a Hungarian trade organisation,²⁹⁹ and member of the European region of the International Co-operative Alliance.³⁰⁰

Komoróczki also became a member of the Hungarian delegation to the European Economic and Social Committee (EESC) in 2015. In 2018, he became President of both the EESC’s EU-Georgia Domestic Advisory Group on sustainable development and trade in Georgia³⁰¹ and the EU-Georgia Civil Society platform, whose purpose is to coordinate and invite comment from civil societies from the both the EU and Georgia.²⁹⁸³⁰² Though it is not a member of the EU, Georgia has had a special economic agreement permitting free trade between Georgia and the EU since 2016³⁰³ and in 2019 demonstrated further interest in achieving full member status.³⁰⁴

TobaccoTactics Resources

• Revolving Door
• Imperial Tobacco

References

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