The GTNF 2022 was a hybrid event that took place virtually, and in Washington for in-person delegates, from 27-29 September 2022.¹

The following speakers, panellists and moderators were listed on the GTNF website:²³

• Joe Ackerman- Swedish Match
• Jonathan H. Adler- Case Western Reserve University
• Benjamin Apelberg- US Food and Drug Administration (FDA)
• Gizelle Baker- Philip Morris International (PMI)
• Clive Bates- Counterfactual Consulting
• Erik Bloomquist- global nicotine and tobacco investment consultant
• Alex Clark- Consumer Advocates for Smoke-free Alternatives Association (CASAA)
• Simon Clarke– Forest
• Gal Cohen- Rose Research Center
• Carlista Moore Conde- British American Tobacco (BAT)
• C. Crosthwaite- JUUL Labs
• Brittani Cushman- Turning Point Brands Inc.
• Ming Deng- Yunnan University
• Dave Dobbins
• Stacy Ehrlich- Kleinfeld Kaplan and Becker LLP
• Philip Evans- Boston Consulting Group
• Konstantinos Farsalinos- Onassis Cardiac Surgery Center
• Jonathan Fell- Ash Park Capital
• Karen Gerlach- Womble Bond Dickinson (U.S.) LLP
• Marewa Glover- Center of Research Excellence on Indigenous Sovereignty and Smoking
• Will Godfrey- Filter and The Influence Foundation
• Sharon Goodall- British American Tobacco (BAT)
• Sam Hampsher-Monk- BOTEC Analysis
• Katrin Hanske- Schweitzer-Mauduit International (SWM)
• Angela Harbutt- Institute of Economic Affairs
• Bonnie Herzog- Goldman Sachs
• Matthew Holman – US Food and Drug Administration (FDA)
• Jennifer Hunter- Altria
• David Janazzo- Foundation for a Smoke-Free World
• Pamela Kaufman- Morgan Stanley
• Mark Kehaya- AMV Holdings LLC
• Brian A. King- US Food and Drug Administration (FDA)
• Pritika Kumar- R Street Institute
• Kgosi Letlape
• David Levy- Georgetown University
• Mark Littlewood- Institute of Economic Affairs
• Meisen Liu- Shenzhen Zinwi Bio-Tech Co. Ltd.
• Fadi Maayta- Alternative Nicotine Delivery Solutions
• Paige Magness- Altria
• Steve Marley- Ashwood Executive Search International
• John Miller- 22nd Century Group
• Stefanie Miller- JUUL Labs
• Deepak Mishra- Philip Morris International (PMI)
• Anna Mitchell- British American Tobacco (BAT)
• Joe Murillo- JUUL Labs
• Kim “Skip” Murray
• Ray Niaura- New York University’s School of Global Public Health
• Michael Ogden- Chemular
• James Murphy- Reynolds American Group (BAT)
• Flora Okereke- British American Tobacco (BAT)
• Beth Oliva- Fox Rothschild LLP
• Cheryl K. Olson
• David O’Reilly– British American Tobacco (BAT)
• Sudhanshu Patwardhan- Centre for Health Research and Education
• Kevin Peng- ALD Group
• Abrie du Plessis
• Riccardo Polosa– University of Catania and Center of Excellence for the Acceleration of Harm Reduction (CoEHAR)
• James Prieger- Pepperdine University
• Kim Reed- ITG Brands
• Brad Rodu– University of Louisville
• Elaine Round- RAI Services Company (BAT)
• Christopher Russell- Russell Burnett Research & Consultancy Ltd.
• Jagannath Sarangapani- International Network of Nicotine Consumer Organisations (INNCO)
• Brad Seipel- M/A/R/C Research
• Pieter Sikkel- Pyxus International Inc
• Donna Smith- Altria Client Services
• George Cassels-Smith- Tobacco Technology Inc
• Lisa Smith- Btomorrow Ventures (BAT)
• Christopher Snowdon- Institute of Economic Affairs
• Jeff Stier- Consumer Choice Center
• David Sweanor- University of Ottawa
• Malin Lindfors Speace- Ethos
• Brent Taylor- Altria
• Joe Thompson- Imperial Brands
• Carrie Wade- Philip Morris International (PMI)
• Eve Wang- Shenzhen SMOORE Technology Co. Ltd.
• Kingsley Wheaton– British American Tobacco (BAT)
• Rupert Wilson- Strategic Business Consulting
• Derek Yach- Foundation for a Smoke-Free World

TobaccoTactics Resources

• Global Tobacco and Nicotine Forum
• Global Tobacco and Nicotine Forum 2021
• Global Tobacco and Nicotine Forum 2020
• Global Tobacco and Nicotine Forum 2019
• Global Tobacco and Nicotine Forum 2018
• Global Tobacco and Nicotine Forum 2017
• Global Tobacco and Nicotine Forum 2016
• Global Tobacco and Nicotine Forum 2015
• Global Tobacco Networking Forum 2014
• Global Tobacco Networking Forum 2013
• Global Tobacco Networking Forum 2012
• Global Tobacco Networking Forum 2010

References

The post Global Tobacco and Nicotine Forum 2022 appeared first on TobaccoTactics.

BOTEC Analysis is a research and consultancy firm based in the US, which works on nicotine and tobacco harm reduction, cannabis, drug policy, transportation and community corrections.⁴  Its website states that “BOTEC combines the capabilities of a consultancy and a think tank, resulting in service that is nimble and responsive but also grounded in evidence and ethical accountability”.⁵

BOTEC Analysis has received funding from Philip Morris International (PMI) and the Foundation for a Smoke Free World (FSFW).

People

Samuel Hampsher-Monk has been the Managing Director of BOTEC Analysis since 2017.⁶⁷ BOTEC Analysis has developed its tobacco harm reduction work since he took on this role.⁸

A list of other current employees can be found on the BOTEC Analysis website.

Relationship with the Tobacco Industry

Funded by the Foundation for a Smoke-Free World

BOTEC Analysis has received funding from the Foundation for a Smoke-Free World (FSFW) since 2019.

In 2019, It received a grant of US$299,767 to “Investigate the drivers of smoking cessation in five countries with alternative nicotine delivery device markets”.⁹

In 2021, it received a further two grants totalling US$401,349 to “Further develop the drivers of smoking cessation in five countries with legalized alternative nicotine delivery systems (ANDS) through a series of additional journal articles, econometric studies, and a full-length book on optimal nicotine regulation” and “Conduct an investigation and analysis and develop recommendations regarding the (i) literature addressing the relationship between COVID-19 and tobacco and nicotine products; (ii) the impact of various tobacco/nicotine related COVID restrictions around the world on smoking and alternative nicotine delivery system (ANDS) use”.¹⁰

In 2022 BOTEC received its largest grants to date, two grants totalling US$937,023 to “Investigate the drivers for smoking cessation and tobacco harm reduction in five countries with alternative nicotine delivery systems markets” and “Develop journal articles, econometric studies, and a full-length book regarding the drivers of smoking cessation in five countries with legalized alternative nicotine delivery systems”.¹¹

PMI IMPACT grant

BOTEC analysis received a grant from PMI through its PMI IMPACT initiative in 2017 to conduct research on the “Impact of e-cigarette regulation on illegal trade in tobacco products in the European Union”.¹²

As part of this project, a paper found that “the more available e-cigarettes become, the less ITTP [illicit trade in tobacco products] market share rises in response to tax-driven price increases for conventional cigarettes”,¹³ an argument beneficial to PMI’s business strategy of pushing heated tobacco products, not as an alternative but a supplement to its cigarette business.

For more information see List of Successful PMI IMPACT Applicants.

Other activities

Hampsher-Monk and Jamer Prieger, Senior Researcher at BOTEC Analysis,⁶ are listed as co-authors of a book due to be published in 2024 titled ‘Clearing the Air on E-Cigarettes and Harm Reduction, Volume I: Tobacco Regulation, Economics, and Public Health’.¹⁴ The other co-author is Sudhanshu Patwardhan, Medical Director of the Centre for Health Research and Education (CHRE).

Hampsher-Monk was listed as a speaker at the 2023 ‘New Approaches’ conference, held at the Harvard Club of New York City, in the same week as the United Nations General Assembly.⁸ For more details see Healthy Initiatives (a FSFW grantee).

Relevant Link

• BOTEC Analysis website

TobaccoTactics Pages

• Foundation for a Smoke-Free World
• PMI IMPACT
• List of Successful PMI IMPACT Applicants

References

The post BOTEC Analysis appeared first on TobaccoTactics.

Background

BAT bought RAI in 2017.¹⁵¹⁶

BAT owned 42.2% of RAI shares from 2004 to 2017.¹⁶ In January 2017, BAT announced that it had agreed to acquire the remaining 57.8% stake.¹⁷ This acquisition was completed by July 2017. ¹⁵¹⁶

When BAT bought RAI it inherited Vuse e-cigarettes.¹⁵

• For details see E-Cigarettes: British American Tobacco

Reynolds also sold its blu e-cigarettes and some of its cigarette brands to Imperial Tobacco (now Imperial Brands).

• For details see E-Cigarettes: Imperial Brands and R. J. Reynolds

TobaccoTactics Resources

• British American Tobacco
• R. J. Reynolds
• IEA: Working with RJ Reynolds, BAT and Philip Morris on Environmental Risk
• Duke University and the Tobacco Industry
• Centre for Indoor Air Research (CIAR)

Relevant Links

• Reynolds American website
• R.J. Reynolds website

References

The post Reynolds American Inc. appeared first on TobaccoTactics.

On 28 April 2022 the US Food and Drug Administration (FDA) announced proposed standards for banning menthol as a characterising flavour in cigarettes and cigars with any characterising flavour other than tobacco.¹⁸¹⁹ The US had previously banned characterising flavours, except menthol in cigarettes in 2009 (see below).

The rules would come into effect one year after the final publication of the regulations (not yet provided).²⁰²¹ This time period is similar to the EU ban which the tobacco industry exploited whereas the Canadian ban was implemented within six months.²²

The proposed standards would also ban characterising flavours in components or parts of cigarettes and cigars (filters, filter wrapper, paper, filter tips, drops, capsules, flavour cards) whether or not they were sold separately.²⁰ This was not the case with the EU ban, an omission which provided a loophole for the industry to exploit.

The FDA stated that the ban would apply to products being manufactured, distributed or sold in the US.¹⁹²⁰ It emphasised that enforcement would be at the company level (manufacturers, distributors, wholesalers, importers and retailers) rather than at individual (smoker) level.¹⁹²⁰ It would not restrict flavoured products intended for export.  The FDA suggested that replacing existing local bans with a nationwide ban would reduce opportunities for illicit trade.²⁰

Menthol cigarettes and tobacco products are yet to be banned US-wide. This is despite the Tobacco Control Act of 2009 making the issue of menthol in cigarettes an FDA priority, an FDA report detailing menthol’s harms in 2011, and efforts by health organisations and non-governmental organisations (NGOs) to push the FDA to ban menthol cigarettes.²³

Flavour and Menthol Bans in Place in the US

Cigarette flavours, excluding menthol, were banned US-wide in 2009 as part of the Tobacco Control Act.  At this time menthol represented nearly one third (27%) of the cigarette market.²⁴²⁵ By 2018, 36% of cigarettes sold in the US were menthol, and less than 1% of the US population lived in areas where menthol cigarettes were banned.²⁵²⁶

In 2020, Massachusetts was the first state to pass state-wide legislation banning all flavoured tobacco products, including menthol. Later the same year California passed a similar law, although some cigars and pipe tobacco were exempt.²⁷ There are multiple other local bans and restrictions in place across the country – for more information see the factsheet produced by the Campaign for Tobacco Free Kids.²⁸

Industry Opposition to Menthol Bans in the US

The US continues to be an important market for tobacco companies’ menthol brands. In its 2018 Annual Report, BAT said that after it acquired US tobacco company RJ Reynolds in 2017:

“The sales of Newport, together with the other menthol brands of the Group’s operating subsidiaries, represent a significant portion of the Group’s total net sales”.²⁹

In the same report BAT repeatedly noted that any future flavour bans would risk having a negative impact on its business.²⁹ A proposed federal (nationwide) ban in 2016 led to a drop in the value of tobacco companies’ shares, although the ban was not implemented.³⁰³¹

The tobacco industry claimed that stopping convenience stores selling menthol cigarettes as planned in Minnesota (by restricting their sale to adult only tobacco and stores selling alcohol) would lead to catastrophic financial and job losses.  However independent research suggested losses would be six times smaller: tobacco does not drive use of convenience stores as much as the tobacco industry claims.³²

Arguments against a USA-wide ban from the tobacco industry, included that there was not enough scientific evidence to support the ban, because, they claimed, menthol does not increase the disease risk, or markers for dependence or addiction.²⁰³³ Some argued there should be an exemption for premium cigars.²¹

In April 2021, the FDA announced that it was “working towards” a full menthol and flavour ban in cigarettes and cigars, stating that:

“This decision is based on clear science and evidence establishing the addictiveness and harm of these products and builds on important, previous actions that banned other flavored cigarettes in 2009.”³⁴

Industry Lobbying and Interference in US Menthol Bans

Tobacco companies have extensively lobbied against legislation, both nationally and in individual states, in order to oppose or delay the implementation of regulations on menthol and flavour.

The Campaign for Tobacco Free Kids (CTFK) has described tobacco companies repeated attempts to block or delay legislation by filing lawsuits and funding related campaigns, including in San Francisco in 2017, and California in 2019 and 2020.³⁵³⁶ This is a well-documented industry strategy.

Tobacco companies have targeted politicians and law makers with direct financial contributions, and funded third party organisations to lobby on their behalf.^3536373839 An investigation by the Bureau of Investigative Journalism (BIJ) revealed how consultants working for Reynolds American did not always declare their links to industry.³⁶

In September 2020, the Los Angeles Times reported that the California Coalition for Fairness had submitted a request for a referendum to overturn the Californian ban.⁴⁰ The organisation did not provide details of its members, but the newspaper noted that ban was proposed by Attorney Aaron Agenbroad who has previously worked for RJ Reynolds (now BAT) and Jaime Rojas, a spokesman for a tobacco industry campaign to overturn a ban on flavoured tobacco in San Francisco.⁴⁰ RJ Reynolds also ran a television ad campaign against the ban.⁴⁰

Tobacco companies have also given financial support to organisations and individuals working within the Black community.³⁵ Some have gone onto to make claims of unexpected impacts of menthol bans on Black people, including criminalisation and harm to community relations.³⁵ The US Public Health Law Centre has rebutted some of this industry misinformation around this issue.⁴¹

In June 2020, two US NGOs (African American Tobacco Control Leadership Council and Action on Smoking and Health) filed a lawsuit against the FDA to try to force it to introduce a ban in order to reduce health inequalities, noting that 85% of African American smokers smoke menthol cigarettes.⁴²⁴³ See also the STOP statement on this legal action and the Truth Initiative factsheet

The same figure has been used by the tobacco industry to lobby against the ban, arguing that it is discriminatory: “giving special treatment to the rich, and singling out communities of color”.⁴⁴ In September 2020, the American Medical Association (AMA) joined the lawsuit as co-plaintiffs.⁴⁵ The president of the AMA said that:

“For generations, tobacco companies have promoted menthol cigarettes to the African American community, preying especially on African American youth… This action is long, long overdue”.⁴⁵⁴⁶

Marketing of Menthol to the Black Community

There is a long history of targeted marketing of menthol by the tobacco industry. In the 1960s starter packs and discounts were distributed in newspapers and magazines popular in Black communities. Black models and famous Black sports people and entertainers have appeared on adverts.  Images relating to Black Power and Black History month have been used in marketing, and tobacco companies have made donations to music festivals. They have also given financial donations to  political and community organisations and leaders.⁴⁷⁴⁸

Marketing of flavoured tobacco products was still disproportionately found in Black neighbourhoods in Washington in 2018/19, while other tobacco advertising was not.⁴⁹⁵⁰

The BIJ investigation report stated that RAI consultants had “exploited concerns about police brutality against Black citizens”.³⁶⁵¹

• See also the Long Read on Racism and the Tobacco Industry

Relevant Links

Food and Drug Administration, Tobacco Product Standard for Menthol in Cigarettes (United States, 5 April 2022)

Public Health Law Center: Menthol and Other Flavoured Products, PHLC website (United States), including FDA timeline of key events

Centers for Disease Control and Prevention, Office on Smoking and Health Summary of Scientific Evidence: Flavored Tobacco Products, Including Menthol February (United States, 2021)

Truth Initiative, Menthol: Facts, stats and regulations (United States, April 2022)

TobaccoTactics Resources

• Flavoured and Menthol Tobacco 
• Menthol Cigarettes: Industry Interference in the EU and UK

References

The post Flavoured and Menthol Tobacco in the US 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.⁵³ The pouches also generally contain plant fibres, flavourings and sweeteners.⁵⁴ Nicotine is absorbed into the bloodstream via the mucous membranes in the mouth.⁵³⁵⁴ 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.⁵⁴

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.⁵³

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).⁵³⁵⁵  They can also contain high levels of nicotine where unregulated.⁵⁵

“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.^53565758

In its 2022 annual report, BAT states that its “current portfolio contains no synthetic nicotine”.⁵⁹ PMI states that its pouches contain “nicotine derived from tobacco”.⁶⁰ JTI and Imperial Brands do not refer to synthetic nicotine and describe their pouches as “tobacco-free”.^61626364

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).”⁶⁵

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.⁶⁵ COT planned to produce a full report for the UK government in autumn 2023.⁶⁵

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.⁶⁶⁶⁷⁶⁸ A July 2019 news report suggested that BAT’s nicotine pouches were also on sale in Sweden, Italy and Tanzania.⁶⁹ 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.⁷⁰ According to BAT this would give them a combined share in the US nicotine pouches market of around 10%.⁷⁰

BAT distinguished Epok, Lyft and Velo from traditional snus and allocated them to a new product category, which it called “modern oral products”.⁶⁶ 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.⁷¹ It continues to market the product as Lyft in Sweden and Denmark.⁷² It also sells nicotine pouches under its Niconovum brand Zonnic in Sweden.⁷³

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 2021.⁵⁹⁷⁴ 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.⁵⁹ 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.⁷⁵⁷⁶ 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.⁷⁷⁷⁸ In 2021, it said that it “prioritized Sweden, Switzerland and the UK”.⁷⁹ 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.⁶² In 2023, new strong and extra strong spearmint flavoured pouches went on sale in the UK, to meet the “demand for stronger variants”.⁸⁰ According to the Nordic Spirit website its extra strong pouches contain 11mg per pouch (17mg per gram).⁸¹

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.⁸² 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.^{838485  86} 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 2023.⁶³⁶⁴

In 2020, IMB had previously published an article on its Imperial Science website exploring what it described as “The Tobacco-Free Nicotine Pouch Opportunity”.⁸⁷They later said they had launched a “cutting edge bamboo fibre based product”.⁸⁸

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.”⁶⁴

In 2023, Imperial acquired several nicotine pouch brands from Canadian company TJP Labs, to market in the US.⁸⁹

Altria

In 2019 Altria announced that it was acquiring an 80% share in oral nicotine pouch on! from Swiss tobacco company Burger Sohne.⁹⁰⁹¹ It set up a new subsidiary Helix Innovations, through which it would manufacture and market the product.⁹⁰⁹¹ 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).⁹⁰ 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.⁹² According to Altria, by the end of 2020 the number of stores selling on! had nearly doubled.⁹³ 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.⁹⁴

In 2021, Altria acquired the remaining 20% of on!.⁹⁵ In 2022, it stated that it held over 20% of the UK nicotine pouch market, although the category was “increasingly competitive”.⁹⁶ It also stated that Helix operates internationally, although most of its oral products are sold in the US.⁹⁶ As of February 2023, the FDA had not issued marketing order decisions for any on! products.⁹⁶

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.⁹⁷ CEO Andre Calantzopoulos said PMI was planning to develop a product through a “combination of partnerships and internal development”.⁹⁸

In May 2021, PMI acquired Danish snus manufacturer AG Snus, manufacturer of Shiro nicotine pouches.⁹⁹¹⁰⁰ 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.¹⁰¹ At this time, PMI also began referring to gums and nicotine pouches as “modern oral” products, as BAT and JTI do.¹⁰¹

• 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).¹⁰¹

In 2022, PMI acquired Swedish Match.¹⁰² 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”.¹⁰³ Its nicotine pouch Zyn has been sold mainly in Sweden and some other European countries, as well as the US (since 2015).¹⁰⁴ It also sells the Volt Pearls product in Denmark, Iceland and Sweden.⁶⁰

• 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”.⁶⁰

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 2027.¹⁰⁵ Nearly 15 billion units were sold in 2023, but they remain a small part of the market.¹⁰⁵

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.¹⁰⁵ 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.¹⁰⁵ Other nicotine pouch markets include UK, Germany, Poland, Czech Republic, Uzbekistan, Ukraine and Indonesia.¹⁰⁵¹⁰⁶

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)¹⁰⁷ each held around a twelfth share.¹⁰⁸ 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).¹⁰⁹ 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.^65109110 Concerns have been raised over their availability to youth, and social media marketing.^65111112 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.¹¹²

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.¹¹³¹¹⁴ 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.¹¹⁴ In Sweden, pouches containing products other than tobacco and nicotine have long been regulated as food items.⁵⁴ Zonnic oral pouches (owned by RAI from 2009,¹¹⁵ 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.¹¹⁶ 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.⁵⁴

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.¹⁰⁹ In Finland nicotine pouches are no longer classified as medicines, unless marketed as such.¹¹⁷ 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.¹¹⁸¹¹⁹ Both tobacco-derived and synthetic nicotine pouches are regulated, but advertising and sponsorship are banned.¹⁰⁹

In contrast, in March 2023, Belgium announced a total ban on nicotine pouches, by royal decree.¹²⁰¹²¹ BAT were reported to be petitioning the courts to annul the decree.¹²² The Netherlands announced a ban a month later.¹²³¹²⁴

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.¹²⁵ BAT removed its nicotine pouches from the German market that year.¹²⁵ Some federal states have withdrawn pouches, and some products have been classified as a health hazard due to high levels of nicotine.¹⁰⁹

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 .¹¹⁴ There are also regulations specific to synthetic nicotine.¹²⁶ Nicotine pouches are freely available to consumers.¹⁰⁴ 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.¹²⁷

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.¹²⁸ These products are now regulated, either classified as a ‘Natural Health Product’ or as a prescription drug, depending on the level of nicotine.¹⁰⁹ In July 2023, Health Canada authorized the marketing of BAT’s Zonnic nicotine pouch (with 4mg of nicotine) as a natural health product.^129130131132 Physicians for a Smoke-Free Canada reported that this product contains the same ingredients as BAT’s Velo,¹³¹ 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.”¹³¹

Australia & New Zealand

As with e-cigarettes and heated tobacco products, nicotine pouches are banned from sale in Australia, and only available on prescription.¹⁰⁹

In New Zealand, oral tobacco products (including snus) and nicotine pouches are banned, unless approved as medicines.¹⁰⁹ (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.¹⁰⁹ In others, including Brazil, Brunei Darussalam, Iran, and Thailand, both are regulated as tobacco products.¹⁰⁹ In Ukraine there are no specific regulations in place, but synthetic nicotine pouches are regulated as a food product.¹⁰⁹ Mauritius bans both,¹⁰⁹ whereas in Uruguay, nicotine pouches are categorised as a form of nicotine replacement therapy (see below).¹⁰⁹

At the time of writing, July 2023, nicotine pouches remain unregulated in most countries.¹⁰⁹

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.”⁵⁵

• 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.¹³³

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.¹³⁴ and “consumers are familiar with other similar oral products”.¹³⁵ 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”.¹³⁴¹³⁵

Kenya

After announcing its intention to sell nicotine pouches in Kenya, BAT launched Lyft in the country in December 2019.^69136137 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.¹³⁸ 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.¹³⁸

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”.¹³⁹ Spencer-Obatyoinbo confirmed that BAT switching to “non-combustibles” was “not an immediate thing”.¹³⁹ 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.¹⁴⁰ (According to BAT the nicotine for its pouches is currently manufactured in Switzerland.)¹⁴⁰ The Chief Executive of the International Institute for Legislative Affairs argued that this would be a “huge setback for tobacco control interventions in Kenya”.¹⁴¹ For more information see the Kenya country profile page.

Nicotine pouches were initially registered as a pharmaceutical product by the Kenya poisons board.¹⁴² This designation was challenged by local advocates.¹⁴² 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.¹⁴²¹⁴³ 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 2020.¹⁴³¹⁴⁴ 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.¹⁴³ 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.”¹³⁴ 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.¹⁴⁵ This included plans to set up distribution networks across 21 countries in the Common Market for Eastern and Southern Africa (COMESA).¹⁴⁵

In 2022, BAT’s nicotine pouch was back on the market in Kenya, as Velo.¹⁴⁶ 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.”⁵⁹

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.¹⁴⁷

BAT has also lobbied against increased taxes on these products.^148149150

Pakistan

Velo was launched by BAT in Pakistan in December 2019, with a campaign run by Ogilvy Pakistan “positioned towards affluent adult consumers”.^151152153

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.”¹⁵⁴

• 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”. ⁷⁴ 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.⁵⁹ These sales figures, and rapid growth, are roughly consistent with Euromonitor’s estimates.¹⁰⁸

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 18.¹⁵⁵

South Africa is also one of the target markets for PMI’s ZYN nicotine pouches. ¹⁵⁶

Indonesia

In February 2021, BAT referred to the test marketing of its nicotine pouches in Indonesia.  BAT reported “encouraging results”.¹³⁴ External statistics suggest the market remained small.¹⁰⁸

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.⁵³¹⁵⁷ 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. ¹⁵⁸The 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. ¹⁵⁹¹⁶⁰

Although they can only legally be sold to adults in the UK, concerns have been raised over potential use by children.⁶⁵¹⁶¹

In 2020, there were reports that Lyft was being used by children in Kenya.¹³⁸¹⁶² Children were also reported to be using the products in schools in Scotland.¹⁶³

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.^164165166

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.¹¹²

BAT also promotes Velo through motorsport sponsorship.¹⁶⁷¹⁶⁸

• 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 2020.¹⁶⁹ As of March 2024, BAT and JTI are the only partners listed on the NNPA website.¹⁶⁹

The NNPA webpage states “We engage, inform, and increase knowledge about nicotine pouches”.¹⁷⁰  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.¹⁷¹¹⁷² Jonas Lundqvist, NNPA CEO, is listed as the accredited lobbyist on the EU register.^173171172 In 2022, the estimated cost of NNPA lobbying activities was listed as €400,000-499, 999, four times the amount listed in 2021.¹⁷¹¹⁷²

NNPA also runs the online news platform ‘Pouchforum’.¹⁷⁴ Articles published on the platform have accused the European Commission of misrepresenting the risk of nicotine pouches,¹⁷⁵ and suggested that the Commission does not act in a transparent manner.¹⁷⁶ The site editor is Robert Casinge, also ‘Senior Partner’ in the NNPA, and previously listed as a lobbyist on the EU register.¹⁷²¹⁷⁷

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.^178179180 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. ^181182183

In 2016, researchers in the US pointed to the implications for both product regulation and smoking cessation,¹¹⁵ 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.”¹¹⁵

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.^73184185 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). ¹⁸⁶¹⁸⁷

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.⁵⁹¹⁸⁸ 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.⁵⁹ As of February 2023, no Velo products had received pre-market approval in the US.⁵⁹ 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.^129130132

BAT’s science website presents its research on nicotine pouches, as well as a summary of the ‘Snus and the Swedish Experience’.¹⁸⁹ 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”.¹⁰¹ PMI has also referred to the “medical” or “pharmaceutical” grade nicotine in its products.⁶⁰¹⁹⁰ (Read more about on PMI’s acquisition of pharmaceutical companies.)

PMI’s science website presents its research on nicotine pouches.¹⁹⁰ It does not refer to its snus products on these pages.^190191192

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”.⁸⁷  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.¹⁸⁰

Imperial refers to its use of “high purity pharmaceutical grade nicotine”.⁸⁷¹⁹³ In May 2021, Imperial published its “comprehensive scientific assessment” of its nicotine pouches, in comparison to cigarettes.¹⁹⁴

Japan Tobacco‘s science website does not feature nicotine pouches, although it includes  its research on these products.¹⁹⁵

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.¹⁹⁶¹⁹⁷

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”. ¹⁹⁸

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

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