Motorsports, golf, cricket, tennis, sailing and badminton are among many sports which have received tobacco money.²³⁴

With one-fifth of the world’s population, nearly a billion people, connected to football directly or indirectly, this sport provides the tobacco industry with a massive potential audience.⁵ By associating with football, the tobacco industry is able to increase brand awareness among key demographics in all parts of the globe, link their brand with images of health and success, normalise its presence and contribute towards its corporate social responsibility goals. ⁶⁷ Note: In this article we use the word football though in some countries the sport is more commonly known as soccer.

Football-themed cigarette pack produced by Semarange in Indonesia in 2015. Image from The use of sports imagery and terminology on cigarette packs from fourteen countries, https://www.tandfonline.com/doi/full/10.1080/10826084.2017.1363236

Tobacco pack advertising

The tobacco industry initially promoted its products as a means of maintaining an athletic physique.⁶ In the 1890s tobacco companies began producing collectible cards with images of football players. The cards, which featured cigarette advertisements, were placed inside cigarette boxes. The practise all but stopped during the Second World War due to paper and tobacco shortages, but companies such as Carreras, now British American Tobacco (BAT), continued advertising, putting images on cigarette cartons.⁶⁸

Tobacco brand names are still used to develop links with sport, including football. An analysis by Kleb et al looked at cigarette packs from 14 low- and middle-income countries to see how many had sports-related themes. It found 36 brands with distinct “sports appeal” including the use of football imagery and text. “The pack is a powerful medium through which tobacco companies continue to associate their products with idealised concepts associated with sports,” the authors conclude.⁹

Football star endorsements

Tobacco brands have used particularly well-known football stars to endorse their brands. In the United States in 1964, such testimonials were prohibited under the voluntarily Cigarette Advertising Code. However the code was widely felt to be ineffective and in other countries tobacco associations with the sport continued.¹⁰¹¹

Where previously the England captain in the 1950s would be proudly pictured with a particular brand, now prominent footballers are often called out if seen smoking. Zinedine Zidane, Mario Balotelli and Fabien Barthez, are among those who have been criticised for setting a poor example.¹²¹³

Nonetheless, the attractiveness of using individual football stars continues – whether they wish to or not. In 2002, the English Football Association threatened legal action against BAT after the company used images of England World Cup captain David Beckham and star, Michael Owen, in newspaper advertisements in Malaysia.¹⁴ In 2012, Indonesian cigarette company Gudang Garam used its digital sports channel to form a link with Manchester United and England star Rio Ferdinand, before the footballer cut ties with the company. It subsequently focussed on motorsports content.

More recently, VPZ, which operates e-cigarettes stores in the UK and has financial links with Philip Morris International, launched a campaign on 10 March 2022 to coincide with National No Smoking Day, calling for a “complete ban on smoking”. The retailer enlisted the services of former Tottenham and Liverpool player Neil “Razor” Ruddock to act as the campaign ambassador. As part of its anti-smoking campaign, VPZ argued that “vaping is fundamental to reaching this target” and highlighted its “vape clinic” services.¹⁵

Since television money flooded into the game in the 1990s, football has vastly expanded its global reach. Its top stars have ever-greater global exposure and marketing power which continue to make them attractive targets for tobacco companies.

Sponsoring clubs, leagues and cups

Tobacco companies have sponsored football leagues, clubs and cups around the world. The practice is helped by the fact that the global governing body of football, FIFA, and its continental confederations such as UEFA, often have little authority over national leagues which are structured in a variety of ways. In these regulatory gaps tobacco companies continue to exploit football brands, in particular in the continents of Africa, Asia and South America.

An internal presentation from Philip Morris in 1994 outlined the benefits for targeting the Asian football market to promote the Marlboro brand. It said: “[Football] Perceived as a very masculine, somewhat rugged sport; very popular among YAMS [young adult male smokers], nicely complements F1 as a Marlboro property.” It proposed sponsoring regional and national cups and leagues and identified China, Indonesia, South Korea and Hong Kong as priority markets. It proposed spending US$9m over three years sponsoring the China National Football League.¹⁶ That deal went ahead despite the fact there was a law banning tobacco advertising in sports stadiums.¹⁷ The sponsorship deal did end a year later, partly due to the advertising ban. Marlboro had eventually paid more than US$1.2m each year for the rights – which was twenty times more than the China Football Association’s organisational budget. “The commercialization of Jia-A league opened a brand new era of Chinese sports,” according to one study.¹⁸¹⁹

RJ Reynolds’ Camel brand sponsored cup competitions in Uruguay (Mundialito Uruguay), Japan (Toyota Cup) and venues across Europe for the European Cup Winners cup in the 1980s. An internal analysis concluded that the European advertising had great potential but “it will be a slow and expensive process”.²⁰ Tobacco companies have invested in that process.

In Jamaica, Craven A, produced by Carreras, was the title sponsor of the country’s premier domestic league competition until the early 2000s.²¹ Tobacco companies have also sponsored domestic leagues in Colombia (Copa Mustang) and Indonesia (Liga Dunhill) as well as individual sides such as Austria Vienna (Memphis cigarettes) and FK Sarajevo in Bosnia and Herzegovina.²²

In 2017, Nyasa Manufacturing Company took ownership of Big Bullets FC in Malawi.²³ In 2020 Zimbabwe professional side Dynamos Football Club (known to its fans as DeMbare) agreed an increased sponsorship package with Gold Leaf Tobacco.²⁴²⁵ Cairo’s Eastern Company Sporting Club, also known as El Sharkia Lel Dokhan, is named after the Egyptian tobacco company, and in 2021 the company’s top management asked all smokers to support the team in the Egyptian football league stating that “sports is the good image of the company”.²⁶

In 2019, Djarum, an Indonesian tobacco company that ranks as the world’s leading clove cigarette producer²⁷ bought an Italian football club called Como 1907, a team that plays in the Italian Serie B league.²⁸ The new owners brought in former England international Dennis Wise as CEO and have attracted young footballing talent as well as more well-known faces such as Spain’s Cesc Fabregas.²⁹

The ownership of the club is actually via Djarum’s subsidiary SENT Entertainment Ltd. Through Djarum’s television arm Mola TV, it has developed a reality TV series called Dream Chasers: Garuda Select which followed 24 young footballers trying to succeed in Europe under the direction of Wise. This collaboration between sport and media has echoes of F1’s successful Netflix series Drive to Survive which has been credited with increasing interest in the sport in America. Motorsport is a recipient of huge tobacco sponsorship given the opportunity to reach new young markets.³⁰³¹

Djarum also owns a badminton club and has sponsored other sports events in the past.³²

In many cases the financial support offered by tobacco companies is vital for some clubs and it is not always about them being targeted by cigarette manufacturers. In 2001, the US Soccer Federation, the charitable arm of football in America, contacted Philip Morris about setting up a “Smoke Free Kids and Soccer Program” to distribute grants. “Obviously we are interested in your input and would love to hear any ideas you might have,” the Foundation’s associate director of development and outreach wrote.³³ Philip Morris already had years of investment in football in America, such as through the Miami Cup in the 1980s.³⁴

As well as these professional sides there is a tradition of works teams who took their official names from tobacco companies. These include BAT Sports FC in the UK, a club originally formed by the workforce of British American Tobacco, and whose team was once nicknamed the ‘tobacco men’.³⁵ Another example is the BSG Tabak Dresden, a German team that was named after the local tobacco manufacturer in the 1940s.³⁶

FIFA World Cup and Confederations Cup

American tobacco company RJ Reynolds was an official sponsor of the 1982 FIFA World Cup in Spain. Though Mexico had tobacco advertising bans in place when it hosted the 1986 World Cup, tournament organisers negotiated a deal which allowed RJ Reynolds to advertise. After 1986, FIFA announced that it would no longer accept sponsorships from the tobacco industry.³⁷ FIFA then introduced a ban on tobacco use at the 2002 World Cup in South Korea and Japan, but, four years later in Germany, the ban was dropped.³⁸

In 2005, the World Health Organization (WHO) Framework Convention on Tobacco Control banned “all tobacco advertising, promotion and sponsorship”, and with the increasingly global nature of TV coverage and consequent bans on cross-border advertising, companies were forced to remove all cigarette branding.³⁹ FIFA, with help from the WHO, developed its own tobacco-free policy, and in South Africa in 2010, introduced a comprehensive ban on smoking during its competitions.⁴⁰

In 2017, FIFA updated its tobacco-free policy to include heated tobacco products (HTPs) and e-cigarettes (also known as electronic nicotine delivery systems, or ENDS).⁴¹

For the 2022 World Cup an agreement between FIFA, the WHO and the Government of Qatar prohibits smoking and the use of e-cigarettes in the stadium bowl and fan zones and only allows it in outdoor designated smoking areas in the outer perimeter of the stadiums. This will be enforced by tobacco monitors.⁴² One UK-based manufacturer of e-liquids has promised to pay the fines of England fans caught using such products.⁴³ Meanwhile Indonesian clove cigarette manufacturer Djarum, already one of tobacco companies most actively using sports to promote its products, will repeat its 2018 World Cup strategy of sponsoring community-based world cup screenings, including World Cup-themed promotional material.⁴⁴

UEFA European Football Championships

UEFA introduced a tobacco-free stadia policy in all its competitions in 2012, prohibiting the use, sale and promotion of tobacco and e-cigarettes in all internal and external areas of host stadia.⁴⁵ In 2014, Healthy Stadia studied the extent and nature of smoke-free policies operating at football stadia within Europe and found that only 10 of 22 countries with bans completely prohibited smoking.⁴⁶ The same study, which explored the legislative framework surrounding smoke-free stadia in Europe, showed gaps between legislation and practise.⁴⁶

The first European Championships staged under the policy was Euro 2012 in Poland and Ukraine, with the policy extending to France 2016.⁴⁵⁴⁷

The postponed 2020 European football championships saw the launch of a Tobacco-Free Declaration developed by the European Healthy Stadia Network to help clubs, leagues and governing bodies develop tobacco-free policies. An updated survey found a marked increase in smoke-free stadia compared with 2014.

It showed that 29 out of 50 UEFA national associations responding were operating complete smoke-free policies, 21 had partial policies while three had no policies at all. In addition 51 of the 53 associations responding had policies prohibiting the sale and advertising of tobacco products and 26 had specific policies prohibiting e-cigarettes.⁴⁸

The Dutch Football Association is one of those with voluntary codes stronger than national legislation and aims to have all stadia and training areas smoke-free and no advertising or promotion of both conventional and newer nicotine and tobacco products.⁴⁸

VIP facility at Bayern Munich’s stadium in Germany sponsored by a tobacco company

UEFA national associations are only part of the football picture in each country. Examples such as cigar sponsorship at Germany’s prestigious Bayern Munich ground show there are still gaps in the advertising and promotion ban.⁴⁹

During the 2020 UEFA Championships, British American Tobacco’s HTP brand glo acted as official sponsor for the Italian national Football Federation, despite the Italian Ministry of Health and consumer rights organisations exposing it as illegal sponsorship of tobacco products.⁵⁰

Glo sponsorship of the Italian National Football Federation included a sales area in the Rome stadium, allowing fans to win and personalise glo products on site.⁵¹

A survey conducted by Tobacco Tactics found varying levels of compliance with such legislation. Spanish journalists reported a lack of awareness of legislation banning tobacco use at stadia and a general acceptance of smoking as a matter of culture. Journalists in Romania reported seeing occasional tobacco advertising since the autumn of 2019. By contrast, reporters in Denmark reported neither witnessing tobacco use, nor advertising in or around stadia and reported general compliance with laws.⁵²

• For more information see the Healthy Stadia guidance on tobacco free stadia.

Promoting Newer Products

The uneven application of tobacco advertising bans has opened the door to advertising the growing sales of newer nicotine and tobacco products such as e-cigarettes and HTPs. Despite many countries now having smoke-free regulations inside stadia for domestic competitions, this does not always stretch to prohibiting the use of e-cigarettes and heated tobacco products (HTPs). For example, the English Football League does not prohibit them within its ground regulations.⁵³ One of the early examples of NGP manufacturers taking advantage of this is Birmingham City in the UK which in 2013 signed a sponsorship deal with local-based Nicolites to carry the e-cigarette logo on its first team shirts.⁵⁴ In Scotland, the sponsors of Rangers FC, launched a range of e-cigarettes flavours honouring the club’s Ibrox brand.⁵⁵ Chinese e-cigarette companies have been forging links with football clubs. In 2021 Geekvape and French Ligue 1 giants Paris Saint-Germain agreed a deal “for co-branded products in authorized countries”.⁵⁶ Innkin signed a sponsorship deal with the English Football League in October 2020.⁵⁷ Notionally this supposed to support smoking cessation campaigns in October but the deal has continued.

Also getting a boost from an association with football are Snus pouches. In 2018 it was reported that hundreds of professional footballers in the UK used the Scandinavian smokeless tobacco product despite its sale being banned. They included England star Jamie Vardy. One footballer said: “It’s big in the game.”⁵⁸

Closed Stadia During Covid-19 Pandemic

In 2020, most domestic league seasons were cancelled, delayed or shortened mid-season due to the COVID-19 pandemic. Before the pandemic, domestic league matches across Europe drew audiences of 20 million to enclosed, or partially covered stadia, and matches were played behind closed doors once leagues resumed.⁵

Companies such as Phillip Morris International have exploited the lockdowns and referenced the COVID-19 pandemic in promoting special offers for home delivery of its HTP, IQOS, to Germany, Italy, Netherlands, Romania and Spain.⁵⁹ All four countries will be hosting matches in the UEFA 2020 European Football Championship matches.⁶⁰

However, the pandemic has also worked to enhance tobacco control policies in some instances. In Belgium, a general smoking ban was implemented in football stadia in October 2020 to aid the safe return of fans and discourage them from removing their masks. The Belgian Pro-League has now announced that it will become totally tobacco-free from the start of the 2021 season.⁶¹

• For more information go to our COVID 19 resources page.

Related links

Healthy Stadia: Tobacco-Free Stadia Guidance

World Health Organization: FIFA World Cup 2022 resources

TobaccoTactics Resources

Motorsports Sponsorship

CSR Strategy

References

The post Football Sponsorship 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.⁶³ The pouches also generally contain plant fibres, flavourings and sweeteners.⁶⁴ Nicotine is absorbed into the bloodstream via the mucous membranes in the mouth.⁶³⁶⁴ 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.⁶⁴

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.⁶³

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).⁶³⁶⁵  They can also contain high levels of nicotine where unregulated.⁶⁵

“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.^63666768

In its 2022 annual report, BAT states that its “current portfolio contains no synthetic nicotine”.⁶⁹ PMI states that its pouches contain “nicotine derived from tobacco”.⁷⁰ JTI and Imperial Brands do not refer to synthetic nicotine and describe their pouches as “tobacco-free”.^71727374

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).”⁷⁵

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.⁷⁵ COT planned to produce a full report for the UK government in autumn 2023.⁷⁵

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.⁷⁶⁷⁷⁷⁸ A July 2019 news report suggested that BAT’s nicotine pouches were also on sale in Sweden, Italy and Tanzania.⁷⁹ 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.⁸⁰ According to BAT this would give them a combined share in the US nicotine pouches market of around 10%.⁸⁰

BAT distinguished Epok, Lyft and Velo from traditional snus and allocated them to a new product category, which it called “modern oral products”.⁷⁶ 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.⁸¹ It continues to market the product as Lyft in Sweden and Denmark.⁸² It also sells nicotine pouches under its Niconovum brand Zonnic in Sweden.⁸³

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 2021.⁶⁹⁸⁴ 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.⁶⁹ 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.⁸⁵⁸⁶ 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.⁸⁷⁸⁸ In 2021, it said that it “prioritized Sweden, Switzerland and the UK”.⁸⁹ 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.⁷² In 2023, new strong and extra strong spearmint flavoured pouches went on sale in the UK, to meet the “demand for stronger variants”.⁹⁰ According to the Nordic Spirit website its extra strong pouches contain 11mg per pouch (17mg per gram).⁹¹

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.⁹² 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.^{939495  96} 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 2023.⁷³⁷⁴

In 2020, IMB had previously published an article on its Imperial Science website exploring what it described as “The Tobacco-Free Nicotine Pouch Opportunity”.⁹⁷They later said they had launched a “cutting edge bamboo fibre based product”.⁹⁸

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.”⁷⁴

In 2023, Imperial acquired several nicotine pouch brands from Canadian company TJP Labs, to market in the US.⁹⁹

Altria

In 2019 Altria announced that it was acquiring an 80% share in oral nicotine pouch on! from Swiss tobacco company Burger Sohne.¹⁰⁰¹⁰¹ It set up a new subsidiary Helix Innovations, through which it would manufacture and market the product.¹⁰⁰¹⁰¹ 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).¹⁰⁰ 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.¹⁰² According to Altria, by the end of 2020 the number of stores selling on! had nearly doubled.¹⁰³ 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.¹⁰⁴

In 2021, Altria acquired the remaining 20% of on!.¹⁰⁵ In 2022, it stated that it held over 20% of the UK nicotine pouch market, although the category was “increasingly competitive”.¹⁰⁶ It also stated that Helix operates internationally, although most of its oral products are sold in the US.¹⁰⁶ As of February 2023, the FDA had not issued marketing order decisions for any on! products.¹⁰⁶

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.¹⁰⁷ CEO Andre Calantzopoulos said PMI was planning to develop a product through a “combination of partnerships and internal development”.¹⁰⁸

In May 2021, PMI acquired Danish snus manufacturer AG Snus, manufacturer of Shiro nicotine pouches.¹⁰⁹¹¹⁰ 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.¹¹¹ At this time, PMI also began referring to gums and nicotine pouches as “modern oral” products, as BAT and JTI do.¹¹¹

• 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).¹¹¹

In 2022, PMI acquired Swedish Match.¹¹² 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”.¹¹³ Its nicotine pouch Zyn has been sold mainly in Sweden and some other European countries, as well as the US (since 2015).¹¹⁴ It also sells the Volt Pearls product in Denmark, Iceland and Sweden.⁷⁰

• 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”.⁷⁰

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 2027.¹¹⁵ Nearly 15 billion units were sold in 2023, but they remain a small part of the market.¹¹⁵

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.¹¹⁵ 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.¹¹⁵ Other nicotine pouch markets include UK, Germany, Poland, Czech Republic, Uzbekistan, Ukraine and Indonesia.¹¹⁵¹¹⁶

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)¹¹⁷ each held around a twelfth share.¹¹⁸ 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).¹¹⁹ 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.^75119120 Concerns have been raised over their availability to youth, and social media marketing.^75121122 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.¹²²

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.¹²³¹²⁴ 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.¹²⁴ In Sweden, pouches containing products other than tobacco and nicotine have long been regulated as food items.⁶⁴ Zonnic oral pouches (owned by RAI from 2009,¹²⁵ 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.¹²⁶ 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.⁶⁴

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.¹¹⁹ In Finland nicotine pouches are no longer classified as medicines, unless marketed as such.¹²⁷ 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.¹²⁸¹²⁹ Both tobacco-derived and synthetic nicotine pouches are regulated, but advertising and sponsorship are banned.¹¹⁹

In contrast, in March 2023, Belgium announced a total ban on nicotine pouches, by royal decree.¹³⁰¹³¹ BAT were reported to be petitioning the courts to annul the decree.¹³² The Netherlands announced a ban a month later.¹³³¹³⁴

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.¹³⁵ BAT removed its nicotine pouches from the German market that year.¹³⁵ Some federal states have withdrawn pouches, and some products have been classified as a health hazard due to high levels of nicotine.¹¹⁹

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 .¹²⁴ There are also regulations specific to synthetic nicotine.¹³⁶ Nicotine pouches are freely available to consumers.¹¹⁴ 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.¹³⁷

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.¹³⁸ These products are now regulated, either classified as a ‘Natural Health Product’ or as a prescription drug, depending on the level of nicotine.¹¹⁹ In July 2023, Health Canada authorized the marketing of BAT’s Zonnic nicotine pouch (with 4mg of nicotine) as a natural health product.^139140141142 Physicians for a Smoke-Free Canada reported that this product contains the same ingredients as BAT’s Velo,¹⁴¹ 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.”¹⁴¹

Australia & New Zealand

As with e-cigarettes and heated tobacco products, nicotine pouches are banned from sale in Australia, and only available on prescription.¹¹⁹

In New Zealand, oral tobacco products (including snus) and nicotine pouches are banned, unless approved as medicines.¹¹⁹ (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.¹¹⁹ In others, including Brazil, Brunei Darussalam, Iran, and Thailand, both are regulated as tobacco products.¹¹⁹ In Ukraine there are no specific regulations in place, but synthetic nicotine pouches are regulated as a food product.¹¹⁹ Mauritius bans both,¹¹⁹ whereas in Uruguay, nicotine pouches are categorised as a form of nicotine replacement therapy (see below).¹¹⁹

At the time of writing, July 2023, nicotine pouches remain unregulated in most countries.¹¹⁹

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.”⁶⁵

• 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.¹⁴³

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.¹⁴⁴ and “consumers are familiar with other similar oral products”.¹⁴⁵ 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”.¹⁴⁴¹⁴⁵

Kenya

After announcing its intention to sell nicotine pouches in Kenya, BAT launched Lyft in the country in December 2019.^79146147 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.¹⁴⁸ 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.¹⁴⁸

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”.¹⁴⁹ Spencer-Obatyoinbo confirmed that BAT switching to “non-combustibles” was “not an immediate thing”.¹⁴⁹ 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.¹⁵⁰ (According to BAT the nicotine for its pouches is currently manufactured in Switzerland.)¹⁵⁰ The Chief Executive of the International Institute for Legislative Affairs argued that this would be a “huge setback for tobacco control interventions in Kenya”.¹⁵¹ For more information see the Kenya country profile page.

Nicotine pouches were initially registered as a pharmaceutical product by the Kenya poisons board.¹⁵² This designation was challenged by local advocates.¹⁵² 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.¹⁵²¹⁵³ 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 2020.¹⁵³¹⁵⁴ 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.¹⁵³ 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.”¹⁴⁴ 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.¹⁵⁵ This included plans to set up distribution networks across 21 countries in the Common Market for Eastern and Southern Africa (COMESA).¹⁵⁵

In 2022, BAT’s nicotine pouch was back on the market in Kenya, as Velo.¹⁵⁶ 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.”⁶⁹

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.¹⁵⁷

BAT has also lobbied against increased taxes on these products.^158159160

Pakistan

Velo was launched by BAT in Pakistan in December 2019, with a campaign run by Ogilvy Pakistan “positioned towards affluent adult consumers”.^161162163

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.”¹⁶⁴

• 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”. ⁸⁴ 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.⁶⁹ These sales figures, and rapid growth, are roughly consistent with Euromonitor’s estimates.¹¹⁸

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 18.¹⁶⁵

South Africa is also one of the target markets for PMI’s ZYN nicotine pouches. ¹⁶⁶

Indonesia

In February 2021, BAT referred to the test marketing of its nicotine pouches in Indonesia.  BAT reported “encouraging results”.¹⁴⁴ External statistics suggest the market remained small.¹¹⁸

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.⁶³¹⁶⁷ 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. ¹⁶⁸The 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. ¹⁶⁹¹⁷⁰

Although they can only legally be sold to adults in the UK, concerns have been raised over potential use by children.⁷⁵¹⁷¹

In 2020, there were reports that Lyft was being used by children in Kenya.¹⁴⁸¹⁷² Children were also reported to be using the products in schools in Scotland.¹⁷³

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.^174175176

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.¹²²

BAT also promotes Velo through motorsport sponsorship.¹⁷⁷¹⁷⁸

• 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 2020.¹⁷⁹ As of March 2024, BAT and JTI are the only partners listed on the NNPA website.¹⁷⁹

The NNPA webpage states “We engage, inform, and increase knowledge about nicotine pouches”.¹⁸⁰  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.¹⁸¹¹⁸² Jonas Lundqvist, NNPA CEO, is listed as the accredited lobbyist on the EU register.^183181182 In 2022, the estimated cost of NNPA lobbying activities was listed as €400,000-499, 999, four times the amount listed in 2021.¹⁸¹¹⁸²

NNPA also runs the online news platform ‘Pouchforum’.¹⁸⁴ Articles published on the platform have accused the European Commission of misrepresenting the risk of nicotine pouches,¹⁸⁵ and suggested that the Commission does not act in a transparent manner.¹⁸⁶ The site editor is Robert Casinge, also ‘Senior Partner’ in the NNPA, and previously listed as a lobbyist on the EU register.¹⁸²¹⁸⁷

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.^188189190 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. ^191192193

In 2016, researchers in the US pointed to the implications for both product regulation and smoking cessation,¹²⁵ 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.”¹²⁵

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.^83194195 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). ¹⁹⁶¹⁹⁷

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.⁶⁹¹⁹⁸ 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.⁶⁹ As of February 2023, no Velo products had received pre-market approval in the US.⁶⁹ 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.^139140142

BAT’s science website presents its research on nicotine pouches, as well as a summary of the ‘Snus and the Swedish Experience’.¹⁹⁹ 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”.¹¹¹ PMI has also referred to the “medical” or “pharmaceutical” grade nicotine in its products.⁷⁰²⁰⁰ (Read more about on PMI’s acquisition of pharmaceutical companies.)

PMI’s science website presents its research on nicotine pouches.²⁰⁰ It does not refer to its snus products on these pages.^200201202

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”.⁹⁷  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.¹⁹⁰

Imperial refers to its use of “high purity pharmaceutical grade nicotine”.⁹⁷²⁰³ In May 2021, Imperial published its “comprehensive scientific assessment” of its nicotine pouches, in comparison to cigarettes.²⁰⁴

Japan Tobacco‘s science website does not feature nicotine pouches, although it includes  its research on these products.²⁰⁵

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.²⁰⁶²⁰⁷

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”. ²⁰⁸

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

As the harms from conventional products have become better understood, and tobacco control measures have been put in place, the cigarette market – from which tobacco companies make most of their profits – has started to shrink. To secure the industry’s longer-term future, TTCs have invested in, developed and marketed various newer products, including in low and middle-income countries.⁶²  They are often publicly linked to tobacco companies’ harm reduction strategies and labelled ‘reduced risk’ or ‘modified risk’ products.

There is ongoing scientific and policy debate about the role of these products in tobacco control, with concerns around long term health effects, marketing to youth, and how this diversification may help the industry to build credibility and influence  policy makers.⁶²²¹¹

It is important to note that, despite increasing investment in these products, the core of the global tobacco industry’s business remains unchanged. Newer products form a small proportion of their revenue, compared to conventional products, and will do so for the foreseeable future.

Products

Although they are often marketed as ‘new’, companies may have been developing and marketing versions of these products for decades, frequently with limited initial consumer acceptance until the 2000s, when tobacco harm reduction became more popular as a public health strategy.

• Transnational tobacco companies’ interest in Swedish style snus began in 2002, with more recent investments in tobacco leaf-free nicotine pouches.
• E-cigarettes have been acquired and developed by tobacco companies since 2012.
• Heated tobacco products were initially developed in the 1980s and 1990s, with little success, until renewed interest from tobacco companies in 2010.
• Some tobacco companies have also invested in therapeutic products, such as nicotine lozenges, gum and inhalers.

The following graphic summarises the main TTC products and links to TobaccoTactics pages which contain more information. Note that brand names may vary in different countries.

See Newer Nicotine and Tobacco Products: Tobacco Company Brands to see this information in table format.

You can also view a timeline of key tobacco company investments in e-cigarettes and HTPs.

Tobacco Company Investment and Development Strategies

Individual tobacco companies have different development strategies. Although most have a mix of newer products in their portfolios, Philip Morris International (PMI), for example, has mainly invested in and promoted heated tobacco products. Unsurprisingly it is the market leader in this product category. In contrast, Imperial Brands (IMB, previously Imperial Tobacco) resisted following the same route: until 2019, it focused solely on expanding its e-cigarette brand ”blu”. Japan Tobacco International (JTI)’s focus has mainly been on developing hybrid products that combine e-cigarette technology with tobacco sticks. British American Tobacco (BAT) has arguably the most diverse portfolio, including e-cigarettes, heated tobacco, and hybrid products. All TTCs now have interests in snus and nicotine pouches.

TTCs have added these newer products to their portfolios in a number of ways:

• Through buying other tobacco companies. When BAT bought Reynolds American Inc. (RAI) it inherited the e-cigarette Vuse.  Altria gained snus products when it bought the US Smokeless Tobacco Company. Similarly PMI bought Swedish company AG Snus in 2021 and, more significantly, Swedish Match in 2022.
• Through buying independent, non-tobacco companies. This was the main strategy for early investments in e-cigarettes, which began in 2012 with Lorrillard’s purchase of Blu Skycigs.
• The establishment of licensing agreements with other tobacco companies, such as PMI’s distribution deals with Altria, and South Korean company KT&G.
• The marketing of products owned by independent companies under licence, for example BAT’s early investment in nicotine inhaler Voke from Kind Consumer.
• The development of their own products ‘in house’, for example PMI’s HTP IQOS and JTI’s Ploom.

For more details on companies’ newer product portfolios, and how they have developed, see:

Newer Nicotine and Tobacco Products: Philip Morris International

Newer Nicotine and Tobacco Products: British American Tobacco

Newer Nicotine and Tobacco Products: Japan Tobacco International

Newer Nicotine and Tobacco Products: Imperial Brands

• See also Industry Approaches to Science on Newer Products

Regulation of Newer Products

Some information about regulation can be found on product-specific pages.

The Policy Scan Project, by the Institute for Global Tobacco Control (at Johns Hopkins University) tracks and reports regulatory approaches to e-cigarettes, heated tobacco products (HTPs) and nicotine pouches around the world. See the IGTC Policy Scan webpage for more details.

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.²¹²

Can Newer Products Help Advance Public Health?

Globally, there is an ongoing debate about the potential role of these newer tobacco and nicotine products in advancing public health. Tobacco companies have claimed an interest in harm reduction as a motivation for developing and marketing these products.²¹³²¹⁴

However, a study by researchers from the University of Bath’s Tobacco Control Research Group found that the sale and promotion of these products, and the associated harm reduction narrative, serve to “…‘renormalize’ an industry that is determined to be seen as a responsible business with a legitimate product…”.²¹³ The study also found that the products and narrative are used as tools for tobacco companies to initiate dialogue with scientists, public health experts, politicians and policy makers, thereby re-framing themselves as ‘part of the solution’ rather than being the problem.²¹³ Therefore, the tobacco industry is using newer products as a way to try and re-enter the policy arena from which it has increasingly, and successfully, been excluded in line with Article 5.3 of the WHO Framework Convention on Tobacco Control.

Tobacco company presentations and documents show that the primary motive remains profit; the main driver for growth is conventional tobacco products; and this is likely to continue to be the case for the foreseeable future.^{215 216217}

At its 2019 Annual General Meeting PMI’s CEO Andre Calantzopoulos said that, while its newer products were increasingly complementing its cigarette business, the company was “committed to maintaining leadership of the cigarette category” and that it would be “focusing innovation on fewer, more impactful [cigarette] initiatives that can be deployed swiftly in any market”.²¹⁸ Similarly, BAT’s CEO Jack Bowles told investors in August 2019: “Our combustible business continues to drive the financial performance of the group and we are performing well”.²¹⁹

For more examples of similar industry statements see the page on e-cigarettes.

WHO Urges Caution

The WHO published an information sheet on HTPs in July 2018. It stated that:

“All forms of tobacco use are harmful, including HTPs. Tobacco is inherently toxic and contains carcinogens even in its natural form. Therefore, WHO recommends that HTPs should be subject to the same policy and regulatory measures applied to all other tobacco products, in line with the WHO Framework Convention on Tobacco Control (WHO FCTC).”²²⁰

In March 2019, the Secretariat of the WHO FCTC issued an information note, which compiled all Conference of the Parties (COP) decisions related to e-cigarettes. 

A few months later, the Secretariat released a statement urging governments to remain vigilant, stating that:

“novel and emerging nicotine and tobacco products…are creating another layer of interference by the tobacco industry and related industries, which is still reported by Parties as the most serious barrier to progress in implementing the WHO FCTC”.²²¹

It also reminded Parties of their obligations under Article 5.3 to protect tobacco control policies and activities from all commercial and vested interests.²²¹

Relevant Links

STOP/Tobacco Control Research Group, ”Addiction At Any Cost: Philip Morris International Uncovered”, 20 February 2020

TobaccoTactics Resources

• Newer Nicotine and Tobacco Products: Philip Morris International
• Newer Nicotine and Tobacco Products: British American Tobacco
• Newer Nicotine and Tobacco Products: Japan Tobacco International
• Newer Nicotine and Tobacco Products: Imperial Brands
• A list of all pages in the  Newer Nicotine and Tobacco Products category
• Harm Reduction
• Product Terminology
• Industry Approaches to Science on Newer Products

TCRG Research

• Tobacco industry messaging around harm: Narrative framing in PMI and BAT press releases and annual reports 2011 to 2021, I. Fitzpatrick, S. Dance, K. Silver, M. Violini, T.R. Hird, Frontiers in Public Health, 18 October 2022, doi:10.3389/fpubh.2022.958354
• Understanding the emergence of the tobacco industry’s use of the term tobacco harm reduction in order to inform public health policy, S. Peeters, A.B. Gilmore, Tobacco Control, 2015; 24:182-189, doi:10.1136/tobaccocontrol-2013-051502
• Transnational Tobacco Company Interests in Smokeless Tobacco in Europe: Analysis of Internal Industry Documents and Contemporary Industry Materials, S. Peeters, A.B. Gilmore, PLoS Medicine, 2013; 10(9):1001506

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 Newer Nicotine and Tobacco Products appeared first on TobaccoTactics.

• For definitions and other terms used see Product Terminology.

Brands currently on sale appear in bold. It is noted [in square brackets] if a product has been rebranded, discontinued, or appears to have limited distribution.

Those known to be in development, but not on the market at time of publication, are in italics.

Note that snus contains tobacco leaf, but snus-style nicotine pouches do not. Nicotine pouch brands are marked below with a *

Transnational tobacco companies have also invested in Cannabis and CBD products. Some have also invested in oral nicotine products like lozenges, gum. Most controversially they have also invested in therapeutic products including inhalers designed to deliver pharmaceutical drugs to the lungs. More information can be found on Tobacco Company Investments in Pharmaceutical and NRT Products

Table of TTC newer product brands

For a graphic version of this table showing the main TTC brands see Newer Nicotine and Tobacco Products.

For information on Altria products and investments, see E-cigarettes: Altria (including its previous investment in  JUUL Labs e-cigarettes). For information on its investment in On! tobacco-free nicotine pouches, see the page on Cigarette Companies Investing in Snus.

In 2022, PMI acquired Swedish Match which produces nicotine pouches as well as its tobacco snus products. PMI had also acquired Danish company AG Snus in 2021.

TCRG Research

• US regulator adds to confusion around heated tobacco products, A.B. Gilmore, S. Braznell, BMJ, 2020;370:m3528. doi:10.1136/bmj.m3528
• E-cigarettes: threat or opportunity?, A.B. Gilmore, G.E. Hartwell, European Journal of Public Health, 2014, 24(4):532-3. doi:10.1093/eurpub/cku085
• S. Peeters, A.B. Gilmore, Transnational Tobacco Company Interests in Smokeless Tobacco in Europe: Analysis of Internal Industry Documents and Contemporary Industry Materials, PLoS Medicine, 2013;10(9):1001506

References

The post Newer Nicotine and Tobacco Products: Tobacco Company Brands appeared first on TobaccoTactics.

As the harms from conventional products have become better understood, and tobacco control measures have been put in place, the cigarette market – from which tobacco companies make most of their profits – has started to shrink. To secure the industry’s longer-term future, TTCs have invested in, developed and marketed various newer products, including in low and middle-income countries.⁶²  They are often publicly linked to tobacco companies’ harm reduction strategies and labelled ‘reduced risk’ or ‘modified risk’ products.

There is ongoing scientific and policy debate about the role of these products in tobacco control, with concerns around long term health effects, marketing to youth, and how this diversification may help the industry to build credibility and influence  policy makers.⁶²²²⁶

It is important to note that, despite increasing investment in these products, the core of the global tobacco industry’s business remains unchanged. Newer products form a small proportion of their revenue, compared to conventional products, and will do so for the foreseeable future.

Background

Like its competitors, Japan Tobacco International (JTI) has been investing in newer nicotine and tobacco products that, unlike cigarettes, have potential for growth in developed markets.²²⁷

On its corporate website, in 2019, JTI described the importance of its “reduced-risk products” ( RRPs) to the company’s future:

“RRPs are core to the sustainability of our business, as we need to meet ever-evolving, increasingly diverse consumer demands with the best and widest variety of smoking experiences. That’s why we have committed to providing the widest range of consumer choice in the RRP category.”²²⁸

However by 2021, JTI’s framing had changed. Now its website pointed to the importance of consumer lifestyle choice, noting that some of their customers would continue to choose combustibles.²²⁹ In its 2021 annual report JT (JTI’s parent company) stated that:

“While the RRP [Reduced Risk Product] category is our top investment priority in terms of future sustainability of the JT Group, we project nonetheless that combustibles will remain the tobacco industry’s biggest category through the coming decade.”²³⁰  

JT also stated that it did not expect its RRPs to break even until 2027.²³⁰

Snus

Snus is a smokeless tobacco product, traditional to Sweden, sold as a paste or in a tiny pouch that is placed between the gum and upper lip for a period of time. Nicotine pouches do not contain tobacco leaf.

• For more details about this product, see: Snus.

Gallaher, acquired by JTI in 2007, was the first cigarette company to invest in snus when it bought a small Swedish snus manufacturer called Gustavus in 2002.²³¹ Tobacco Control, 2013; 22:266-273 In 2013, JTI’s parent company, Japan Tobacco briefly trialed Zerostyle snus in Osaka, Japan, but with little apparent success. ²³²

From 2017, JTI has been selling snus in Norway and Sweden through its wholly-owned subsidiary, Nordic Snus.²³³ It sells two brands, LD and Nordic Spirit, the latter being a nicotine pouch (see image 1).²³⁴

The product category only featured as a footnote in the company’s 2018 annual report.²³⁵ However, this is a fast-growing market, and JTI has been promoting its product Nordic Spirit nicotine pouches in the UK and other EU countries, where tobacco snus is banned.²³⁶ In 2019, Japan Tobacco reported that Nordic Spirit had been launched in seven European markets “with encouraging results.²³⁷ In its 2021 annual report JTI stated that it was prioritizing markets in Sweden, Switzerland and the UK.²³⁰

• For more information  go to Cigarette Companies Investing in Snus and Nicotine Pouches

However, the company’s strategy appears to be mainly focussed on HTPs and e-cigarettes.

Heated Tobacco Products

In 2010, JTI’s parent company Japan Tobacco had launched Zerostyle Mint in Japan, which it described as a “smokeless”, snuff-like tobacco product. However, this device required the user to inhale by mouth through a capsule containing tobacco leaf, unlike snuff which is placed directly in the nose.²³⁸

Although this was not an HTP, as it did not require lighting or heating, it was a precursor to later devices in terms of its design and the company’s strategy. Zerostyle Mint was not marketed as a reduced-risk product, but nonetheless was a way for JTI to circumvent social problems associated with smoking, as well as smoke-free regulations. JT’s media release stated at the time:

“The new product does not require a flame, and thus is smokeless, allowing consumers to use it in a variety of locations, being considerate to neighbors [sic] at the same time”.²³⁹

Partnership with Ploom Inc.

In 2011, JTI entered into a partnership with San Francisco-based entrepreneurial company Ploom Inc. (which was later renamed Pax Labs: for more information see JUUL Labs.²⁴⁰ The aim was to commercialise Ploom Inc.’s HTP product, called Ploom, outside the US.²⁴¹ It is likely that when JTI gained access to the Ploom product, it ceased sales of its own Zerostyle product. The last time Zerostyle featured in JT corporate external communications was October 2013.²⁴²

The partnership between JTI and Ploom Inc. came to an end in 2015, and JTI acquired a number of patents and trademarks relating to the product.²⁴³ Since then, JTI has continued to develop, and bring to market, variants of Ploom, under its “T-Vapour” product category.²³⁷

Ploom HTP hybrids

JTI’s HTP, Ploom TECH (and Ploom TECH+) uses a hybrid technology which heats a liquid to create a vapour (similar to an e-cigarette), and then passes the vapour through a tobacco-containing capsule.²²⁸ Launched formally in April 2019, JTI describes these products as “tobacco infused”.²³⁷²³⁰ What sets the Ploom TECH products apart from other HTPs on the market is that they heat tobacco at “low temperature”: 30°C and 40°C, respectively.²⁴⁴²⁴⁵ In comparison, a conventional cigarette heats to around 600°C;²⁴⁶ Philip Morris International’s IQOS to 350°C;²⁴⁷ and British American Tobacco’s glo to 280°C.²⁴⁸ PloomTech has been marketed as Logic Vapeleaf in the US since 2017.^{249250 251} However it appears that this is without Pre-Market Authorisation, which is a legal requirement in the US. The Food and Drug Administration (FDA) wrote to JTI in September 2019 demanding further information from the company.²⁵² In March 2022, The FDA approved the marketing of Logic Vapeleaf in the US.²⁵³

Ploom Heated Tobacco

Ploom S, developed by JTI after Ploom TECH and launched in August 2019, only uses tobacco sticks, which are heated to 200°C.²³⁷²⁴⁵ In November 2020, JTI launched Ploom S and Evo tobacco sticks in the UK.²⁵⁴ The products were on sale online, and in London via independent retailers, in “pop-up shops” and “Ploom Lounges”.²⁵⁴ This launch took place during Covid-19 pandemic, just after the announcement that non-essential commercial premises would be closed again, including e-cigarette stores.

JTI launched its next HTP, Ploom X, in July 2021, in Japan, “supported by digital campaigns and new Ploom X CLUB portal”.²³⁰²⁵⁵ 

JTI also sells tobacco sticks for use with Ploom devices under its Mevius and Camel tobacco brands.²⁵⁶²⁵⁷

Market pressure from HTP competitors

In 2019, JTI’s HTPs were also sold in Japan, Switzerland, Italy, the United States (US), Canada, and Russia.²³⁷²⁵⁸

Despite HTPs appearing to be the main focus of JTI’s newer products strategy, the company has struggled to gain market share, especially in its domestic market. JTI has been criticised for not being able to keep up with market leader Philip Morris International (PMI), which according to Reuters held nearly 72% of Japan’s HTP market in 2018 with its IQOS HTP.²⁵⁹ Euromonitor International put PMI’s share slightly higher at 75%, with British American Tobacco (BAT) having nearly 18% with glo, and JTI at just over 7%.²⁵⁸ JTI initially attributed this to repeated production delays which resulted in the company having to suspend sales and being unable to meet consumer demand.²⁶⁰

The picture remained very similar in 2019 (although PMI appeared to lose some sales to BAT).²⁵⁸ In its 2019 Q3 Results presentation to investors, the company admitted that it was facing “increasing competition in the high-temperature heating category” and that its products were not adequately meeting consumer needs.²⁶¹ On its Ploom S product, which was launched in August 2019 (and which falls in the ‘high-temperature heating category’), the company reported that “Trials and retention [were] below our expectation”. A company press release followed in November 2019, announcing that JT was permanently reducing the retail price of Ploom S in Japan from 7,980 yen to 3,480 yen (USD equivalent: $72 to $31).²⁶²

PMI launched KT&G’s lil HYBRID HTP in Japan in October 2020, in direct competition to JT’s products.²⁶³ (For more information see Newer Nicotine and Tobacco Products: Philip Morris International.) Perhaps in response to commercial pressure, in July 2020, JT announced the development of Ploom X, its “next-generation heated-tobacco device” to be launched in Japan on 17 August.^264265266 Developed by JT and JTI (now in the process of consolidating into one business) the company said that it would have a “authentic tobacco taste and cigarette-like experience”,²⁶⁵ and “new connectivity possibilities and several options to personalize the device to everyday needs”.²⁶⁶ JTI said that it had “focused management and resources behind heated tobacco sticks in order to compete more successfully in this fast-moving segment.”²⁶⁶²⁶⁵ JTI reported that in 2021 Ploom X formed 50% of its RRP sales in Japan.²³⁰ Italy, the UK and Russia are other key markets for JTI’s HTPs.²³⁰

JTI also reported fast growing sales in Russia which it called “a highly dynamic and competitive environment”.²³⁰ In March 2022, it stated that, because of the war in Ukraine, it was suspending its marketing activities in Russia, including the launch of Ploom X which had been planned for 2022.²³⁰²⁶⁷

• For information on global HTP market shares, see Heated Tobacco Products

E-cigarettes

E-cigarettes, also known as electronic cigarettes or Electronic Nicotine Delivery Systems (ENDS), do not contain tobacco. The product consists of a battery, a cartridge with nicotine liquid, and a heating mechanism that heats up the liquid to create a vapour.

• For more detail on what an e-cigarette is and the public health debate around the product, go to E-cigarettes: The Basics and E-cigarettes

In 2014, JTI entered the e-cigarette market by acquiring small e-cigarette companies. First it bought UK-based Zandera, followed one year later by US company Logic. JTI initially sold two brands, E-Lites and Logic, but since 2016 its e-cigarettes have been sold under the Logic brand (see image 3). In its 2019 annual report, it stated that its “E-Vapor” category efforts were focussed on expanding Logic Compact.²³⁷ 

• For more information, including Logic market share, lobbying and promotion go to E-cigarettes: Japan Tobacco International.

US Joint Venture with Altria

In October 2022, JT Group announced that it had entered into a joint venture with Altria through their respective subsidiaries JTI and Philip Morris USA, to “market and commercialize” heated tobacco in the US with “Ploom branded devices and Marlboro branded consumables.”²⁶⁸²⁶⁹

Altria was to hold 75% of the joint venture company Horizon Innovations, with JTI holding 25%. The deal includes the two companies collaborating on premarket applications to the FDA, planned for 2025.²⁶⁸²⁶⁹

Reduced Risk Statements

JTI refers to both its e-cigarettes and HTPs as “Reduced Risk Products” (RRP), sometimes preceded by the word “potentially”.^235270271272  Similar terms are used by JTI’s competitors. For more information, see the page on Product Terminology.

These products form part of JTI’s stated strategy for “Building a Brighter Future”.²⁷⁰²⁷¹ In 2019, it claimed to have spent US$1 billion in five years on “design, development and scientific research” into newer products (including HTPs).²⁷³ Its 2018 annual report specified a total investment of 200 billion yen US$1.85 billion in RRPs by 2020.²³⁵

JTI appears more cautious in its reduced risk claims than its main competitors, PMI and BAT, focussing more on consumer choice than :

“Consumers all over the world vary in their needs, demands and desires, and where one individual might find combustible products meet those requirements, a growing number are looking to the benefits of Reduced-Risk Products (RRP). This is usually due to the products’ potential for harm reduction and/or an experience that is more tailored to their lifestyle or situation.”²⁷²

In 2019, the company website stated: “We cannot say today that Ploom TECH is safer than smoking regular cigarettes but tests have shown that Ploom TECH has a 99% reduction in the constituents recommended by WHO for reduction in cigarette smoke.”²²⁸ In 2023 the UK Ploom website referred to a “90-95% reduction rate”, and stated that “this does not mean that use of Ploom X is safe (…)²⁷⁴ 

While JTI admits that “there are currently no globally agreed standards for assessing the risk-reduction of the alternatives to combustible tobacco products” it also states in its 2021 annual report that RRPS “offer real benefits to consumers and society.”²³⁰  For more on the evidence around the safety of HTPs see Heated Tobacco Products.

Like the other transnational companies, JTI presents its research on RRPs on a dedicated JTI Science website.²⁷⁵

• For details of how tobacco companies use the concept of harm reduction to further their commercial objectives, see the page on Harm Reduction

“Plug and Play” for “health benefits”

In March 2019, JTI announced a partnership with US company Plug and Play, a technology ‘incubator’, to develop a programme called “Vapetech”, to allow start-ups to pitch ideas to JTI to help it “explore and develop consumer relevant features for the next generation of products and services”.²⁷⁶ JTI said it was “bringing together innovators and data experts to develop technology that improves the experience and health benefits of vaping.” ²⁷⁶ In its 2020 annual report JTI stated that it expected overall sales volume to “continue growing … mainly driven by a positive cigarette price/mix variance.”²⁷⁷

In its 2021 annual report it stated that the key to increasing profit and returns for shareholder was “growth of the tobacco business”.²³⁰ Conventional tobacco remained a “top-priority category” with heated tobacco expected “to become a strong pillar for our future growth”.²³⁰ Logic did not feature in JTI’s business plan or in presentations of financial results in 2022, where the focus was on its HTP Ploom.²⁷⁸²³⁰

TobaccoTactics Resources

• Japan Tobacco International
• E-cigarettes: Japan Tobacco International
• Heated Tobacco Products
• Cigarette Companies Investing in Snus
• Nicotine Pouches
• Newer Nicotine and Tobacco Products
• Tobacco Company Investments in Pharmaceutical & NRT Products (Japan Tobacco)
• Industry Approaches to Science on Newer Products

Relevant links

• JTI website

TCRG Research

• Transnational tobacco company interests in smokeless tobacco in Europe: Analysis of internal industry documents and contemporary industry materials, S. Peeters, A. Gilmore, PLoS Medicine, 2013,10(9):1001506
• Understanding the emergence of the tobacco industry’s use of the term tobacco harm reduction in order to inform public health policy, S. Peeters, A.B. Gilmore, Tobacco Control, 2015; 24:182-189

References

The post Newer Nicotine and Tobacco Products: Japan Tobacco International appeared first on TobaccoTactics.