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.² The pouches also generally contain plant fibres, flavourings and sweeteners.³ Nicotine is absorbed into the bloodstream via the mucous membranes in the mouth.²³ 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.³

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.²

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).²⁴  They can also contain high levels of nicotine where unregulated.⁴

“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.²⁵⁶⁷

In its 2022 annual report, BAT states that its “current portfolio contains no synthetic nicotine”.⁸ PMI states that its pouches contain “nicotine derived from tobacco”.⁹ JTI and Imperial Brands do not refer to synthetic nicotine and describe their pouches as “tobacco-free”.^10111213

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).”¹⁴

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.¹⁴ COT planned to produce a full report for the UK government in autumn 2023.¹⁴

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.¹⁵¹⁶¹⁷ A July 2019 news report suggested that BAT’s nicotine pouches were also on sale in Sweden, Italy and Tanzania.¹⁸ 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.¹⁹ According to BAT this would give them a combined share in the US nicotine pouches market of around 10%.¹⁹

BAT distinguished Epok, Lyft and Velo from traditional snus and allocated them to a new product category, which it called “modern oral products”.¹⁵ 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.²⁰ It continues to market the product as Lyft in Sweden and Denmark.²¹ It also sells nicotine pouches under its Niconovum brand Zonnic in Sweden.²²

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 2021.⁸²³ 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.⁸ 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.²⁴²⁵ 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.²⁶²⁷ In 2021, it said that it “prioritized Sweden, Switzerland and the UK”.²⁸ 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.¹¹ In 2023, new strong and extra strong spearmint flavoured pouches went on sale in the UK, to meet the “demand for stronger variants”.²⁹ According to the Nordic Spirit website its extra strong pouches contain 11mg per pouch (17mg per gram).³⁰

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.³¹ 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.^{323334  35} 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 2023.¹²¹³

In 2020, IMB had previously published an article on its Imperial Science website exploring what it described as “The Tobacco-Free Nicotine Pouch Opportunity”.³⁶They later said they had launched a “cutting edge bamboo fibre based product”.³⁷

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.”¹³

In 2023, Imperial acquired several nicotine pouch brands from Canadian company TJP Labs, to market in the US.³⁸

Altria

In 2019 Altria announced that it was acquiring an 80% share in oral nicotine pouch on! from Swiss tobacco company Burger Sohne.³⁹⁴⁰ It set up a new subsidiary Helix Innovations, through which it would manufacture and market the product.³⁹⁴⁰ 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).³⁹ 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.⁴¹ According to Altria, by the end of 2020 the number of stores selling on! had nearly doubled.⁴² 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.⁴³

In 2021, Altria acquired the remaining 20% of on!.⁴⁴ In 2022, it stated that it held over 20% of the UK nicotine pouch market, although the category was “increasingly competitive”.⁴⁵ It also stated that Helix operates internationally, although most of its oral products are sold in the US.⁴⁵ As of February 2023, the FDA had not issued marketing order decisions for any on! products.⁴⁵

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.⁴⁶ CEO Andre Calantzopoulos said PMI was planning to develop a product through a “combination of partnerships and internal development”.⁴⁷

In May 2021, PMI acquired Danish snus manufacturer AG Snus, manufacturer of Shiro nicotine pouches.⁴⁸⁴⁹ 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.⁵⁰ At this time, PMI also began referring to gums and nicotine pouches as “modern oral” products, as BAT and JTI do.⁵⁰

• 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).⁵⁰

In 2022, PMI acquired Swedish Match.⁵¹ 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”.⁵² Its nicotine pouch Zyn has been sold mainly in Sweden and some other European countries, as well as the US (since 2015).⁵³ It also sells the Volt Pearls product in Denmark, Iceland and Sweden.⁹

• 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”.⁹

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 2027.⁵⁴ Nearly 15 billion units were sold in 2023, but they remain a small part of the market.⁵⁴

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.⁵⁴ 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.⁵⁴ Other nicotine pouch markets include UK, Germany, Poland, Czech Republic, Uzbekistan, Ukraine and Indonesia.⁵⁴⁵⁵

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)⁵⁶ each held around a twelfth share.⁵⁷ 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).⁵⁸ 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.¹⁴⁵⁸⁵⁹ Concerns have been raised over their availability to youth, and social media marketing.¹⁴⁶⁰⁶¹ 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.⁶¹

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.⁶²⁶³ 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.⁶³ In Sweden, pouches containing products other than tobacco and nicotine have long been regulated as food items.³ Zonnic oral pouches (owned by RAI from 2009,⁶⁴ 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.⁶⁵ 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.³

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.⁵⁸ In Finland nicotine pouches are no longer classified as medicines, unless marketed as such.⁶⁶ 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.⁶⁷⁶⁸ Both tobacco-derived and synthetic nicotine pouches are regulated, but advertising and sponsorship are banned.⁵⁸

In contrast, in March 2023, Belgium announced a total ban on nicotine pouches, by royal decree.⁶⁹⁷⁰ BAT were reported to be petitioning the courts to annul the decree.⁷¹ The Netherlands announced a ban a month later.⁷²⁷³

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.⁷⁴ BAT removed its nicotine pouches from the German market that year.⁷⁴ Some federal states have withdrawn pouches, and some products have been classified as a health hazard due to high levels of nicotine.⁵⁸

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 .⁶³ There are also regulations specific to synthetic nicotine.⁷⁵ Nicotine pouches are freely available to consumers.⁵³ 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.⁷⁶

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.⁷⁷ These products are now regulated, either classified as a ‘Natural Health Product’ or as a prescription drug, depending on the level of nicotine.⁵⁸ In July 2023, Health Canada authorized the marketing of BAT’s Zonnic nicotine pouch (with 4mg of nicotine) as a natural health product.^78798081 Physicians for a Smoke-Free Canada reported that this product contains the same ingredients as BAT’s Velo,⁸⁰ 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.”⁸⁰

Australia & New Zealand

As with e-cigarettes and heated tobacco products, nicotine pouches are banned from sale in Australia, and only available on prescription.⁵⁸

In New Zealand, oral tobacco products (including snus) and nicotine pouches are banned, unless approved as medicines.⁵⁸ (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.⁵⁸ In others, including Brazil, Brunei Darussalam, Iran, and Thailand, both are regulated as tobacco products.⁵⁸ In Ukraine there are no specific regulations in place, but synthetic nicotine pouches are regulated as a food product.⁵⁸ Mauritius bans both,⁵⁸ whereas in Uruguay, nicotine pouches are categorised as a form of nicotine replacement therapy (see below).⁵⁸

At the time of writing, July 2023, nicotine pouches remain unregulated in most countries.⁵⁸

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.”⁴

• 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.⁸²

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.⁸³ and “consumers are familiar with other similar oral products”.⁸⁴ 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”.⁸³⁸⁴

Kenya

After announcing its intention to sell nicotine pouches in Kenya, BAT launched Lyft in the country in December 2019.¹⁸⁸⁵⁸⁶ 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.⁸⁷ 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.⁸⁷

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”.⁸⁸ Spencer-Obatyoinbo confirmed that BAT switching to “non-combustibles” was “not an immediate thing”.⁸⁸ 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.⁸⁹ (According to BAT the nicotine for its pouches is currently manufactured in Switzerland.)⁸⁹ The Chief Executive of the International Institute for Legislative Affairs argued that this would be a “huge setback for tobacco control interventions in Kenya”.⁹⁰ For more information see the Kenya country profile page.

Nicotine pouches were initially registered as a pharmaceutical product by the Kenya poisons board.⁹¹ This designation was challenged by local advocates.⁹¹ 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.⁹¹⁹² 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 2020.⁹²⁹³ 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.⁹² 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.”⁸³ 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.⁹⁴ This included plans to set up distribution networks across 21 countries in the Common Market for Eastern and Southern Africa (COMESA).⁹⁴

In 2022, BAT’s nicotine pouch was back on the market in Kenya, as Velo.⁹⁵ 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.”⁸

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.⁹⁶

BAT has also lobbied against increased taxes on these products.⁹⁷⁹⁸⁹⁹

Pakistan

Velo was launched by BAT in Pakistan in December 2019, with a campaign run by Ogilvy Pakistan “positioned towards affluent adult consumers”.^100101102

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.”¹⁰³

• 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”. ²³ 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.⁸ These sales figures, and rapid growth, are roughly consistent with Euromonitor’s estimates.⁵⁷

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 18.¹⁰⁴

South Africa is also one of the target markets for PMI’s ZYN nicotine pouches. ¹⁰⁵

Indonesia

In February 2021, BAT referred to the test marketing of its nicotine pouches in Indonesia.  BAT reported “encouraging results”.⁸³ External statistics suggest the market remained small.⁵⁷

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.²¹⁰⁶ 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. ¹⁰⁷The 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. ¹⁰⁸¹⁰⁹

Although they can only legally be sold to adults in the UK, concerns have been raised over potential use by children.¹⁴¹¹⁰

In 2020, there were reports that Lyft was being used by children in Kenya.⁸⁷¹¹¹ Children were also reported to be using the products in schools in Scotland.¹¹²

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.^113114115

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.⁶¹

BAT also promotes Velo through motorsport sponsorship.¹¹⁶¹¹⁷

• 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 2020.¹¹⁸ As of March 2024, BAT and JTI are the only partners listed on the NNPA website.¹¹⁸

The NNPA webpage states “We engage, inform, and increase knowledge about nicotine pouches”.¹¹⁹  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.¹²⁰¹²¹ Jonas Lundqvist, NNPA CEO, is listed as the accredited lobbyist on the EU register.^122120121 In 2022, the estimated cost of NNPA lobbying activities was listed as €400,000-499, 999, four times the amount listed in 2021.¹²⁰¹²¹

NNPA also runs the online news platform ‘Pouchforum’.¹²³ Articles published on the platform have accused the European Commission of misrepresenting the risk of nicotine pouches,¹²⁴ and suggested that the Commission does not act in a transparent manner.¹²⁵ The site editor is Robert Casinge, also ‘Senior Partner’ in the NNPA, and previously listed as a lobbyist on the EU register.¹²¹¹²⁶

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.^127128129 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. ^130131132

In 2016, researchers in the US pointed to the implications for both product regulation and smoking cessation,⁶⁴ 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.”⁶⁴

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.^22133134 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). ¹³⁵¹³⁶

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.⁸¹³⁷ 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.⁸ As of February 2023, no Velo products had received pre-market approval in the US.⁸ 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 2023.⁷⁸⁷⁹⁸¹

BAT’s science website presents its research on nicotine pouches, as well as a summary of the ‘Snus and the Swedish Experience’.¹³⁸ 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”.⁵⁰ PMI has also referred to the “medical” or “pharmaceutical” grade nicotine in its products.⁹¹³⁹ (Read more about on PMI’s acquisition of pharmaceutical companies.)

PMI’s science website presents its research on nicotine pouches.¹³⁹ It does not refer to its snus products on these pages.^139140141

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”.³⁶  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.¹²⁹

Imperial refers to its use of “high purity pharmaceutical grade nicotine”.³⁶¹⁴² In May 2021, Imperial published its “comprehensive scientific assessment” of its nicotine pouches, in comparison to cigarettes.¹⁴³

Japan Tobacco‘s science website does not feature nicotine pouches, although it includes  its research on these products.¹⁴⁴

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.¹⁴⁵¹⁴⁶

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”. ¹⁴⁷

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.

Swedish Match is a Swedish tobacco company that manufactures and sells snus (image 1), moist snuff, cigars, chewing tobacco and matches. Philip Morris International (PMI) bought the company in 2022.

The company used to sell cigarettes, but decided in 1999 to divest its cigarette business to Austria Tabak.¹⁵⁰ Lennart Sundén, then President and CEO of Swedish Match, said at the time:

“Cigarette consumption, the industry’s most dominant source of revenue, is declining or has reached a plateau in most Western countries. For Swedish Match therefore, the divestment of our cigarette operations was a natural step. We were a strong player in local markets, but a very small player compared with our main competitors.”¹⁵¹

In September 2021, Swedish Match announced that it would be selling its US cigar business and focus on its oral products.¹⁵²¹⁵³ Plans to sell were put on hold in March 2022.¹⁵⁴

In May 2022 Philip Morris International made an offer of US$16 billion to buy the whole company.¹⁵⁵¹⁵⁶ On 11 May the board of directors of Swedish Match recommended that its shareholders accept PMI’s offer.¹⁵⁷

As of 10 November 2022, PMI had acquired 86% of the company, and Swedish Match Directors recommended that the remaining shareholders offer to sell their shares to PMI, via its Netherlands subsidiary Philip Morris Holland Holdings (PMHH).¹⁵⁸¹⁵⁹ On 28 November 2022 PMI announced that it held over 90% of the company, meaning it could buy the remaining shares under compulsory purchase rules and take Swedish Match off the stock market.¹⁶⁰

• For more details see Philip Morris International.

Market Share

Swedish Match’s markets for snus, its main product, are Sweden, Norway and the United States (US), although in 2010 the company aspired to become the “global smokefree leader”.¹⁶¹

In 2010 the company held around 80% of the market in Western Europe (mainly in Norway and Sweden) but it has gradually lost market share following the entry of transnational tobacco companies on the Scandinavian snus market.¹⁶² By 2019 Swedish Match held less than 60%. For details see Cigarette Companies Investing in Snus.

In the US, Swedish Match remains the third biggest manufacturer of snus and moist snuff with around 10% market share in 2019. Its main competitors are market leader Altria, and Reynolds American (since July 2017 wholly owned by British American Tobacco).¹⁶³¹⁶⁴

Key Brands

In 2021, the company’s key snus brands were listed on “Smokefree” web page:¹⁶⁵

• Sweden – General, Göteborgs Rapé, Kaliber, , Kronan, and Ettan .
• Norway – General, General G.3, The Lab, Nick & Johnny
• US – General

Similarly to cigarettes, snus brands are available in different price segments, in particular premium and value price categories.

Swedish Match also sells snus-style nicotine pouches which do not contain tobacco leaf and so are not regulated as tobacco products in most countries. Its leading brand in the global market is Zyn. The large transnational tobacco companies have more recently moved into this rapidly growing market. For details see Nicotine Pouches.

Employees/Board Members: Past and Present

In June 2008 Lars Dahlgren became the Chief Executive Officer (CEO) of Swedish Match. Thomas Hayes became President of the US division in 2020, having previously held other leadership roles at the company.

A full list of the current company’s Board of Directors can be accessed here and the current management team here.¹⁶⁶¹⁶⁷

Other people that are or have been associated with the tobacco company:
Markus Ersmark Johan Gabrielsson Tomas Hammargren Cecilia Kindstrand Lars Olof Lofman Lars-Erik Rutqvist

Partnerships and Affiliations

Lorillard

In 2006 Swedish Match entered into a joint venture with Lorillard (the third largest cigarette manufacturer in the US at the time) to develop Swedish-style snus for the US market,¹⁶⁸ but this joint venture was terminated at the end of 2009 following unsatisfactory results.¹⁶⁹

Philip Morris International

In February 2009 Swedish Match entered into a joint venture with Philip Morris International (PMI) to “commercialize Swedish snus and other tobacco products worldwide, outside of Scandinavia and the United States”.¹⁷⁰ This joint venture was dissolved in 2015, allegedly because of lack of demand for snus in the test markets.¹⁷¹

• For more detail on the joint venture, go to our page on SMPM International.

American Lobbyists

In January 2018, the Louisville Courier Journal reported that records of the Kentucky Legislative Ethics Commission showed that some of the highest paid people working at the Kentucky Assembly, were lobbyists paid to influence the State government by large corporations, including tobacco companies.¹⁷² The records named two lobbyists that listed Swedish Match North America as a client:¹⁷³

• Katherine W. Hall
• Patrick M. Jennings

European Smokeless Tobacco Council

In 1989, Swedish Match (then known as Svenska Tobaks), co-founded the lobby group European Smokeless Tobacco Council (ESTOC).¹⁷⁴

Since 2017, ESTOC no longer appears to be active.

Eliminating Child Labour in Tobacco Growing Foundation

Swedish Match is a member of the Eliminating Child Labour in Tobacco Growing Foundation (ECLT).¹⁷⁵ In addition to Swedish Match, ECLT Board members include the International Tobacco Growers Association, British American Tobacco (BAT), Imperial Tobacco, Japan Tobacco International (JTI), and PMI, amongst others. The ECLT has a partnership with the International Labour Organisation (ILO), a United Nations (UN) agency, focussed on issues related to labour such as international labour standards, social protection and unemployment.¹⁷⁶

NordCham Philippines

The company is member of NordCham Philippines, reportedly the largest Nordic Chamber of Commerce in the Asian Region.¹⁷⁷ Swedish Match has owned a factory that produces lighters in Manilla since 2007.¹⁷⁸

Controversial Marketing Strategies

Targeting Youth in Russia

In June 2012, marketing firm Proximity Russia posted promotional materials online that they had produced for SMPM International, the joint venture of Swedish Match and PMI. The company had been asked to develop promotional materials to aid the launch of Parliament snus in Russia, with the promotional materials including so-called “youth engagement materials”.¹⁷⁹ For details and images of this controversial campaign, go to TPD: Marketing to Youth.

Promoting Tobacco Use via Social Media and Online Forums

A 2010 peer-reviewed study demonstrated that, in light of increasing tobacco advertising restrictions, Swedish Match had turned to YouTube and other social media to market its products, with none of the company’s YouTube videos including adequate safeguards to prevent under-age viewing.¹⁸⁰ A 2011 social network analysis further demonstrated that Swedish Match employees had been active on Facebook, with Swedish Match employee Markus Ersmark at the centre of an elaborate network of snus manufacturers, snus retailers, and pro-snus bloggers generating pro-snus content.¹⁸¹

Swedish Match also used to directly contribute to online consumer forums to promote the company, its products and pro-snus messages (see images 2 and 3). The company used to have a ‘Ask the Manufacturer’ column on the American snus consumer forum SnusCENTRAL.org. In 2009 and 2010, Ersmark and a colleague directly responded to consumer questions about Swedish Match products and snus use in general. Over a period of eight months, the duo responded to 31 consumer questions, started one thread themselves, and in total posted 56 messages.¹⁸²

Relationship Building with Social Media Influencers: Hospitality for Pro-Snus Bloggers

In addition to being directly active on social media, Swedish Match have engaged in ‘influencer marketing’ in which the marketing occurs indirectly through key influencers online.¹⁸³ The company actively nurtured relationships with key pro-snus bloggers (of which some labelled themselves ‘snus ambassadors’) through providing hospitality and free sample products.¹⁸⁴ For example, in 2012 Swedish Match hosted a so-called “summit” for American snus bloggers in Washington DC.¹⁸⁵ A year earlier, the company hosted a delegation of American and British snus bloggers in Stockholm, visiting Swedish Match headquarters and factories, as well as a Tobacco Museum.¹⁸⁶ In May 2010 two American bloggers visited Sweden, courtesy of Swedish Match, as was the case in 2009.¹⁸⁷

Some bloggers received regular free snus samples from Swedish Match and then reviewed the products online, including British blogger Tim Haigh. Haigh and Swedish Match later became involved in a controversy which saw researchers from the University of Bath receive verbal abuse over a peer-reviewed article which highlighted that snus was being sold illegally across the EU via the Internet, contravening three EU Directives and Swedish national legislation.¹⁸⁸ For more information see our page on FOI: University of Bath.

Failed Legal Bid to Stop Plain Packaging in Norway

In December 2016, the Norwegian Parliament approved plain packaging legislation on cigarettes and snus. Swedish Match sought an injunction from the Oslo County Court to delay the legislation, arguing that the Norwegian government was in breach of the free European Economic Area (EEA) trade rules and that the intervention (plain packaging of snus boxes) was not in proportion to the health risks associated with snus.¹⁸⁹

In November 2017 the court rejected the Swedish Match claims, ruling that plain packaging was “an evidence-based and internationally recommended measure” adding that it was “a legitimate measure in line with the EEA Agreement”.¹⁹⁰ The court also ruled that snus is harmful to health, and that plain packaging will contribute to the protection of public health, particularly of children and young people.

Swedish Match was ordered to pay the legal costs of the Norwegian Government.

• Litigation is a well-known tactic of tobacco companies to stop or delay tobacco legislation. For more information go to Challenging Legislation.

Tactics to Subvert the Europe-Wide Snus Sales Ban

In 1992, sales of snus were banned in Europe, following an aggressive attempt by the US Smokeless Tobacco Company to introduce smokeless tobacco to several European markets in the mid-1980s. From 2001 the EU snus sales ban has been included in the European Union (EU) Tobacco Products Directive (TPD), which was reviewed in 2014. The snus ban severely limits the growth potential of Swedish Match in Europe, and the company has been attempting to lift the snus ban in the last decade using multiple tactics. The two main platforms of the company’s opposition to the snus ban are free trade and harm reduction.

In a submission to the 2010 public consultation that was part of the TPD review, Swedish match claimed that banning snus “denies 106 million smokers in the EU access to a traditional and non-combustible tobacco alternative to their cigarette”. ¹⁹¹ The company further ‘reminded’ the Commission of the need for EU legislation to respect the principles of EU Better Regulation and that there should be a “non-competitive regulation or tobacco and nicotine products” which would not create internal market distortions.

Directly and Indirectly Lobbied Commission Officials

Swedish Match lobbied DG SANCO (Health Directorate-General), and to a larger extent, non-health elements of the Commission, in particular the Secretariat General (responsible for Better Regulation and impact assessments), the Cabinet of the Regional Policy Commissioner Hahn, and DG ENTR (Enterprise and Industry Directorate-General).

• For a list of all meetings, see TPD: Lobbying of EU Officials

Some of the meetings were facilitated by PR firm Kreab Gavin Anderson. Twice the company was accompanied by Revolving Door case Karin Riis-Jørgensen, a Danish former MEP and senior advisor of Kreab Gavin Anderson.¹⁹²

Murky Lobbying Practices Exposed: ‘Dalligate’ and Untrue Version of Events

On 16 October 2012, EU Health Commissioner John Dalli was forced to resign following an investigation by EU’s anti-fraud office, OLAF, into bribery claims made by Swedish Match. For more detail on this controversy, labelled by some as ‘Dalligate’ or Barrosogate’, visit the pages TPD: Dalligate and TPD: Dalligate Timeline.

The scandal, besides raising questions about the transparency around EU policy making, also exposed the murky lobbying practices of Swedish Match in its attempts to have the snus ban lifted. Evidence showed that the company had inappropriately sought access to Dalli in his private sphere in Malta via Gayle Kimberley, a Maltese lobbyist not registered at the EU Transparency Register. Swedish Match’s Director of EU Affairs, Johan Gabrielsson, one of the people at the centre of the scandal, confirmed in a statement to OLAF on 2 June 2012¹⁹³ that Swedish Match had paid the lobbyist €5,000 to gain access to Dalli and feed him information that would help shape the evidence base on snus in favour of the company’s interests.

The company intentionally hid its relationship with Kimberley who, following a meeting with Dalli in January 2012, reported to Gabrielsson that “the meeting was CONFIDENTIAL and I was in no way representing SM Match just giving the objective position of snus producers and users!”.¹⁹⁴

In the aftermath of the scandal, Swedish Match publicly lied at several occasions suggesting that Kimberley had met Dalli TWICE, the first time in January 2012 and the second time in February 2012 when the alleged bribery attempt had supposedly been made. In an interview following Dalli’s shock resignation, Swedish Match Vice President of EU Affairs, Patrik Hildingsson, recalled:

“There was a first meeting with Dalli in early January and a second one in February to hand over WHO science on snus. After this meeting she lobbyist sounded very upset, saying the meeting was derailed and went in a very odd direction. She told us that during the meeting Dalli had explained that all arguments behind the snus ban were actually in favour of Swedish Match. Then he said that, however, as a health commissioner, his political career would be over if he lifted the ban on snus. He said, according to the feedback I got, that it would be a political suicide to lift the ban. Then he left the meeting and we were alone with a man, an entrepreneur. He was supposed to be a friend of Dalli and did not have any relationship with Swedish Match. He continued the meeting and asked why Dalli would take a suicidal political decision without gaining anything. The solution was simple: we had to pay.”

However, when Hildingsson shared this version of events with the media, Swedish Match had already been informed by OLAF that Kimberley had lied about her presence on this supposed second meeting.¹⁹⁵ The second meeting between the lobbyist and Dalli had not taken place. Gabrielsson later accused OLAF of advising him to stick to an untrue story of events: “I never lied. I just said what I had been told by OLAF. That’s not a lie”.

OLAF has denied allegations that it asked Swedish Match to skew the evidence and the Commission has indicated that it will not pursue this any further.

Lobbying Members of European Parliament

In January 2013, Swedish Match was a keynote speaker at a Parliamentary event organised by the Brussels Network. MEPs Christofer Fjellner, Syed Kamall and Alexander Graf Lambdorff organised a meeting with tobacco as the agenda item, with Swedish Match given their version of their involvement in ‘Dalligate’.¹⁹⁶ On this occasion, Swedish Match also stuck to the untrue version of events regarding the number of times their lobbyist met Dalli.

Challenging the Snus Ban in Court

In 2016 Swedish Match requested a judicial review of the snus ban in the UK High Court, which was approved on 26 January 2017. The case was referred to the European Court of Justice. In its legal challenge, the tobacco company has been supported by the New Nicotine Alliance UK (NNA), who requested the Court to make its own submission to provide a “customer perspective on the ban and on the benefits that will follow if the ban is lifted”.¹⁹⁷ Gerry Stimson, a vocal advocate of tobacco harm reduction, is a Board member of the NNA.

Lobbied for legalisation of snus in the UK

Swedish Match have worked with PR company Abzed to lobby for the legalisation of snus in the UK.^198199200 Abzed stated that it had organised the “placement of around 20 parliamentary questions on snus” and a letter to Matt Hancock, Minister for Health in 2018, co-signed by Adam Afriyie MP.²⁰⁰¹⁹⁹ This campaign continued after the UK left the EU in 2020. In December 2021, Abzed posted messages on snus forums, offering to help members of the public to write to their MPs.²⁰⁰¹⁹⁹ Abzed is not listed on UK or EU lobbying registers.

For more information on Afriyie see All-Party Parliamentary Group (APPG) for Vaping (E-Cigarettes).

Close relationship with Swedish Politicians

In the past, Swedish Match enjoyed a good relationship with Swedish politicians, including Swedish Member of European Parliament (MEP) Christofer Fjellner, who promoted a pro-snus agenda in the European Parliament and was a vocal advocate for removing the EU ban on snus sales.²⁰¹ Shortly before Fjellner launched a petition in 2010 to mobilise opposition to the EU snus ban, Swedish Match had two meetings with the MEP (see image 4).²⁰²
Swedish Match also claims a “close relationship between industry and government” in Sweden.²⁰³ Indeed, the Swedish Government supported Swedish Match’s call for a removal of the EU snus ban, regarding it a violation of free trade principles rather than a public health issue^204205206, an argument first voiced by Swedish Match.²⁰⁷

Corporate Social Responsibility (CSR): Boosting Corporate Reputation

A 2011 news article in Tobacco Control pointed to Swedish Match as an example of tobacco industry philanthropy, where positive publicity was generated with little upfront community investment.²⁰⁸ The tobacco company’s 2009 annual report revealed that “Australia had suffered the country’s worst wildfire disaster in a quarter of a century” and in response the tobacco company had contributed to “Emergency Relief’ by giving a “cash donation” to the Australian Salvation Army (image 5). The company stopped short of disclosing the amount of money donated.

When the authors contacted the Australian Salvation Army and asked about the size of the donation, a spokesperson for the Charity confirmed that Swedish Match had donated AU$500 (approximately £256). The donation had presented only one ten thousandth of a per cent of the company’s operating profit.

Funding Science and Scientists

For several years, Swedish Match North America was a financial donor to the University of Louisville’s Kentucky Research Challenge Trust Fund (also known as ‘Bucks for Brains’).²⁰⁹

From 2005 to 2008, Swedish Match spent half a million US dollars to fund the University’s Endowed Chair in Tobacco Harm Reduction held by Brad Rodu (Image 6).²¹⁰ Rodu has been a vocal supporter of lifting the EU ban on snus.²¹¹

The tobacco industry has historically used science to oppose tobacco regulation and bias public opinion in favour of the tobacco companies.

• To read more about this tactic, visit Influencing Science

Marketing Snus as “Modified Risk Tobacco Product” in the US

In April 2015, the advisory panel of the US Food and Drug Administration (FDA) rejected Swedish Match’s application to alter the health warnings of 10 variants of its General snus and claim snus is less harmful than cigarettes.²¹²

The panel concluded that the company had not provided enough evidence to support that The Swedish Experience could be replicated in the US, and had not sufficiently tested the proposed new health warning to ensure consumers would understand it and interpret it.

In December 2016, the FDA upheld the panel’s advice although it encouraged the company to amend their application and submit more evidence to support their claims.²¹³

In 2019, the FDA stated that eight Swedish Match snus products could be marketed in the US under the “Modified Risk Tobacco Products” (MRTP) pathway, for an initial period of 5 years.²¹⁴ The FDA emphasised that this did not mean that these products were “FDA approved” or indeed “safe”. It also specified restrictions on advertising to prevent them being targeted to youth.²¹⁴Read more about the tobacco industry and Harm Reduction.

Relevant Link

Swedish Match website

TobaccoTactics Resources

• EU Tobacco Products Directive Revision
• TPD: Lobbying of EU Officials
• TPD: EU Ban on Snus Sales
• TPD: Marketing to Youth
• TPD: University of Bath
• SMPM International
• Cigarette Companies Investing in Snus
• Nicotine Pouches
• Global Forum on Nicotine

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
• How online sales and promotion of snus contravenes current European Union legislation, S. Peeters, A. Gilmore, Tobacco Control, 2013; 22:266-273
• Russia: snus targeted at young & wealthy, S. Peeters, K. Evans, Tobacco Control, 2012; 21:456-459
• World: disasters are ‘brand aid’ opportunities for tobacco, G. Fooks, S. Peeters, Tobacco Control 2011, 20:4-7

References

The post Swedish Match appeared first on TobaccoTactics.

Background

Article 17 of the 2014 EU Tobacco Products Directive (TPD) states that:

“Member States shall prohibit the placing on the market of tobacco for oral use, without prejudice to Article 151 of the Act of Accession of Austria, Finland and Sweden.”²¹⁷

The TPD defines ‘tobacco for oral use’ as tobacco products for oral use, except those intended to be inhaled or chewed, made wholly or partly of tobacco, in powder or in particulate.
This includes moist snuff and snus, but does not include chewing tobacco or nasal snuff.

The TPD explains the ban, as follows:

Council Directive 89/622/EEC prohibited the sale in the Member States of certain types of tobacco for oral use. Directive 2001/37/EC reaffirmed that prohibition. Article 151 of the Act of Accession of Austria, Finland and Sweden grants Sweden a derogation from the prohibition. The prohibition of the sale of tobacco for oral use should be maintained in order to prevent the introduction in the Union (apart from Sweden) of a product that is addictive and has adverse health effects. For other smokeless tobacco products that are not produced for the mass market, strict provisions on labeling and certain provisions relating to their ingredients are considered sufficient to contain their expansion in the market beyond their traditional use.

• For more information about the regulations laid down in the TPD, click TPD: Tobacco Control Measures.

Why Snus and Other Oral Tobacco Was Originally Banned

The snus sales ban has been in place since 1992. This prohibition was a response to aggressive attempts to introduce US-style smokeless tobacco ‘Skoal Bandits’ into Europe.²¹⁸ Originally in partnership with British American Tobacco (BAT), the U.S. Smokeless Tobacco Company (UST), co-founder of European lobby group the European Smokeless Tobacco Council (ESTOC) and since 2008 a subsidiary of Altria, marketed the product in several European countries, including the UK and Ireland. A peer-reviewed study from the University of Bath, analysing internal tobacco industry documents, demonstrated that tobacco companies saw smokeless tobacco as having the potential ‘‘to generate new profits without cannibalising existing profits from cigarettes’’ in Europe, and that young people were a key target.²¹⁹

• To read more about the tobacco industry’s investments in smokeless tobacco and snus, click Cigarette Companies Investing in Snus

Skoal Bandits was advertised as “the new way to enjoy tobacco”.²²⁰ In the UK, students were both the target and the means of promotion. An 1985 internal BAT memo reported that UST was ‘‘working the Universities’’, including paying students to promote Skoal Bandits to peers (Image 1).²²¹ Due to fear of this new tobacco product spreading across Europe, and its aggressive marketing tactics to young people, the European Parliament called for a total EU-wide ban on ‘oral tobacco’ sales in September 1987.²²²²²³ This call was preceded by a recommendation from the World Health Organization (WHO) urging countries with no history of smokeless tobacco use to pre-emptively ban this type of tobacco, in order to prevent a future public health problem. In 1988 Ireland became the first European country to ban the sales of oral tobacco, followed in 1990 by the UK and Belgium.²²⁴ They set a precedent for harmonising the internal market, and in 1992 an EU-wide sales ban of oral tobacco was enacted under the amended Labelling Directive. This prohibition was reaffirmed in the 2001 TPD, and again in the 2014 TPD.

Tobacco Industry’s Initial Lack of Response to the Proposed Ban (1987-1992)

Between 1987, when the ban was first proposed, and 1992, when it was enacted, tobacco industry opposition to this ban was minimal, certainly compared to subsequent EU tobacco control directives and recent tobacco industry lobbying to remove the ban. This may reflect the underdeveloped state of the tobacco industry’s EU lobby in the 1980s and early 1990s, and the fact that the big tobacco companies dominating the EU tobacco market at the time did not have any commercial interests in smokeless tobacco. Sweden was not yet part of the EU (it became a member in 1995) and the interests of the largest European smokeless tobacco manufacturer, Swedish Match (then the Swedish Tobacco Monopoly), were predominantly confined to Sweden.

Nevertheless, the proposed ban prompted the establishment of ESTOC in 1989, co-founded by UST and Swedish Match, “to promote understanding of the smokeless tobacco industry and its products and dialogue with retailers, the media, regulatory and/or advisory bodies”.²²⁵²²⁶ Despite finding little evidence of active lobbying by ESTOC, internal tobacco industry documents show that the Confederation of European Community Cigarette Manufacturers (CECCM) briefly lobbied members of the European Parliamentary Committee on Legal Affairs to encourage them to review the legality of the Labelling Directive, arguing that Article 100A was an invalid legal basis for banning a tobacco product. It is unlikely that CECCM was threatened by the ban on smokeless tobacco. Instead, it is more probable that CECCM wished to challenge the legal basis of EU tobacco control legislation in general, a tobacco industry tactic that has been central to industry efforts to derail all key tobacco control efforts in Europe.²²⁷

Increased Opposition to the Snus Ban from the 2000s

Although the original ban on oral tobacco passed with relative little opposition, its reaffirmation in the 2001 TPD led to two legal challenges. The ban on snus became the subject of a heated and, at times divisive, public health debate which developed into a political issue, with several interests groups subsequently lobbying to have the snus ban lifted.

Legal challenges in 2002

Although UST successfully challenged the Irish and UK national smokeless tobacco bans, the EU-wide ban was challenged twice – unsuccessfully- in the European Court of Justice (ECJ). The challenges were brought by Swedish Match and German cigar manufacturer Arnold André (of which Swedish Match is a shareholder), against the UK and German Governments.²²⁸ The claimants argued that the snus ban was in breach of the rules laid down in Articles 95, 133 and 253 TEC, and was in contravention with the EU’s principle of subsidiarity, and also in breach of the principle of “the freedom to pursue an occupation.”²²⁹ In 2004, the ECJ rejected all arguments and upheld the validity of the ban.²³⁰
After failing in its legal challenges, Swedish Match then framed the ban as a political issue:

“This is now a matter for the political decision makers in the different EU institutions. The Swedish Government have stood by us in our legal challenge. The Government now must continue to take its responsibility in the political process and play an active role to remove the current ban, which is discriminatory to a Swedish manufacturer, but also to Sweden as a member state as well as to a million Swedish consumers”

Swedish Government Lobbying on Trade Platform (2008-2013)

In line with Swedish Match’s tactic of turning snus into a political issue, the Swedish Government (Ministries of Health and Foreign Affairs) actively sought support in Brussels for a removal of the snus ban. The government’s key argument was that the ban is a violation of free trade principles, an argument first promulgated by Swedish Match over a decade ago.²³¹²³²

It is noteworthy that the government has consistently ignored health warnings from its own public health experts at the Swedish National Board of Health and Welfare and the Swedish National Institute of Public Health (a state agency under the Swedish Ministry of Health and Social Affairs) about the negative health impacts of snus use.^233234235
Sweden’s opposition to the ban was most evident during the revision of the 2001 TPD (2009-2014). Commenting to DG SANCO (the European Commission’s Directorate-General responsible for tobacco control) on an early draft of the TPD proposal in 2010²³⁶, the Swedish Health Ministry was more concerned with trade and business impacts than health (image 2). The Ministry rejected a continuation of the snus ban, claiming it “resulted in cross-border market distortion”, and further criticised the proposed plain packaging option because “The introduction of plain packaging would thus have severe ramifications for the proprietors of such trademarks. Any such undermining of the protection of intellectual property rights must be handled seriously and with great precaution”.
Sweden’s submission to the Commission’s public consultation at the end of 2010 voiced similar arguments, including that “In Sweden’s opinion, there are no grounds for a ban on this tobacco product. Such a prohibition is contrary to the basic idea of a free market within the Union”.²³⁷

One of the most vocal Swedish politicians that lobbied against the snus ban was Swedish Minister for Trade between 2007 and 2014, Ewa Björling. Shortly before the public consultation closed, she wrote (in English) a letter to her “colleagues” urging them to respond to the consultation in favour of lifting the ban on snus, directing her colleagues to a website (www.sweden.gov.se/snus) set up by the Swedish Government to explain why snus should be legalised.²³⁸ This website is no longer active (attempted access in April 2015).

In 2011, Björling further lobbied her European counterparts through the European Council’s Competitiveness Council, raising the snus ban as an internal market issue. In July that year she wrote to Health Commissioner Dalli, copying in the other Commissioners to her letter, claiming that the ban on snus was “disproportionate” and that there was no consensus on the health risks of snus.²³⁹ One month later Björling was quoted in Tobacco Journal International, a tobacco industry trade journal, saying that the snus fight would continue, and that she was “not going to give up because I think the ban is unfair”.²⁴⁰

In early October 2012, weeks before Dalli was forced to resign in the ‘Dalligate’ controversy, the State Secretary to the Swedish Prime Minister hosted the Head of the Cabinet of EU President Barroso in Stockholm. According to a Commission’s file note, Sweden used this as an opportunity to push the snus issue.²⁴¹. However, this attempt was seemingly unsuccessful as in December 2012 the Commission presented its TPD proposal, which maintained the snus sales ban. Trade Minister Björling told the media that there would be an “all-out war” if the EU directive didn’t go Sweden’s way, but in June 2013 Sweden abandoned its efforts to lift the EU ban on snus, shifting its focus to fight (successfully) the proposed flavouring ban for snus. “When it comes to the issue of exports, there’s no way we can reach a successful outcome,” the Swedish Health Minister Maria Larsson told the media at the time.²⁴²

Despite strong Swedish opposition, there was no support amongst other EU Member States to lift the ban of snus during the revision of the TPD.²⁴³²⁴⁴

Swedish Match Overt and Covert Lobbying Practices

For information on Swedish Match’s overt and covert lobbying practices to remove the snus ban, see:

• Swedish Match
• Swedish Match: Lobbying of EU Officials
• TPD: Dalligate & TPD: Dalligate Timeline

Big Tobacco Embracing ‘the Snus Cause’ (2008-2011)

Since 2008 transnational tobacco companies (TTCs) have lobbied EU Member States and the European Commission to lift the ban on snus, arguing that there is no evidence to support the ban and that snus can serve as a harm reduction product. Philip Morris (PMI) and BAT responded to the 2008 UK Government Consultation on the Future of Tobacco Control and urged the UK Government to support lifting the ban on snus, among other things, citing the The Swedish Experience as proof of concept.²⁴⁵²⁴⁶ When the European Commission ran its 2010 public consultation on the TPD, PMI²⁴⁷, BAT²⁴⁸, Imperial Tobacco ²⁴⁹, and Japan Tobacco International²⁵⁰ responded in favour of lifting the snus ban. Imperial Tobacco argued that “There is no evidence to justify the ban on the marketing and sales of snus”, whereas PMI suggested that public health concerns “should be addressed through regulation rather than the EU’s current policy of prohibition”, and BAT favoured a “more science-based regulation of smokeless tobacco products.” In December 2011 the four big tobacco companies reiterated their desire to see the snus ban lifted in a meeting to discuss the TPD with DG SANCO.²⁵¹ However subsequent TPD lobbying efforts appear to have focussed on the measures TTCs felt most threatened by – namely the introduction of plain packaging, a point of sale display ban, and an ingredients ban.²⁵².

TobaccoTactics Resources

• EU Tobacco Products Directive Revision
• European Smokeless Tobacco Council
• Neil Hamilton
• Snus
• Cigarette Companies Investing in Snus
• Newer Nicotine and Tobacco Products

References

The post Snus: EU Ban on Snus Sales appeared first on TobaccoTactics.

Image 1: General snus (Source: Swedish Match)

Background

Snus is available loose, or portioned in pouches resembling tiny tea bags (Image 1), and consumed by placing a pinch, or the pouch, or between the gum and upper lip for a period of time.²⁵⁶ Ingredients include tobacco, sodium carbonate, moisturisers, and flavourings.²⁵⁶

Unlike other smokeless tobacco, snus has a relatively high nicotine delivery and absorption, and relatively lower levels of harmful substances.²⁵⁷ The lower levels of toxins are generally attributed to how it is manufactured and stored.²⁵⁸

The so-called ‘Swedish Experience’ attributes Sweden’s low smoking prevalence, and resulting low occurrence of smoking related diseases, to high rates of snus use among Swedish men.

• For details see Swedish Experience

However a 2020 review by Norway’s Institute of Public Health identified a potential underestimation of health impacts.²⁵⁹²⁶⁰ A pooled analysis from Sweden, published in 2021, identified an association between snus use among men and increased mortality.²⁶¹

Snus is commonly used along with cigarettes.^262263264 Dual use does not effectively safeguard health.²⁶⁵

Research indicates that snus use probably increases the risk of:

• type 2 diabetes,²⁶⁶
• oral lesions,²⁶⁷²⁶⁸
• osophogeal cancer,²⁶⁷²⁵⁹ and
• preterm birth.^259269270271

Evidence conflicts on the link between snus use and:

• pancreatic cancer,²⁶⁷²⁷²
• cardio vascular disease, high blood pressure, heart attacks and strokes.^259273274275

Cigarette companies investing in snus

From 2002, large transnational tobacco companies increasingly invested in snus, and more recently, nicotine pouches which do not contain tobacco leaf.

Philip Morris International (PMI) gained significant interests in both products when it acquired Swedish Match in 2022. 

• For more information on these investments, see Cigarette Companies Investing in Snus.

Tobacco companies have also conducted, commissioned and funded research on these products.^{276277278279280281}

Swedish Match developed its own quality standard for snus, called Gothiatek.²⁸²²⁸³

Product regulation

The European ban on snus sales has been repeatedly legally challenged by the industry, and a strong lobby from Sweden.

• For more information see Snus: EU Ban on Snus Sales

As of 2022 snus continues to be banned from sale across Europe outside of Sweden. A 2013 TCRG study found there was relatively little control on promotions and illegal snus sales via the Internet.²⁸⁴

• For detailed, up to date information on regulation at country level, see the searchable database on the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK).
• The U.S. Food & Drug Administration (FDA) webpage on Smokeless Tobacco Products links to detailed information on US regulations.
• 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.²⁸⁵

Use in Sport

There are concerns that snus may be becoming more popular among some groups of young people, particularly men, outside Sweden.²⁶³ Use of snus by footballers who play internationally,²⁸⁶²⁸⁷ has led to both concerns around their own health,²⁸⁸²⁸⁹ and the possible impact of increasing attractiveness to youth.²⁸⁶²⁹⁰

Note that in some cases snus may be confused with nicotine pouches, which do not contain tobacco leaf, especially in countries which do not have a tradition of snus use.

TobaccoTactics Resources

• Cigarette Companies Investing in Snus
• Snus: EU Ban on Snus Sales
• Snus: Marketing to Youth
• Pro-snus bloggers: Tim Haigh, Lars-Erik Rutqvist
• A list of pages in the category Snus
• Smokeless Tobacco
• Nicotine Pouches
• Harm Reduction
• Newer Nicotine and Tobacco Products

TCRG Research

• 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
• How online sales and promotion of snus contravenes current European Union legislation, S. Peeters, A.B. Gilmore, Tobacco Control, 2013; 22:266-273

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 Snus 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 product as ‘next generation products’ (NGPs) although terminology changes over time.

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

Background

All of the ‘big four’ TTCs (BAT, JTI, Imperial Brands, and Philip Morris International) have invested in a certain type of smokeless tobacco, called Swedish-style snus.²⁹³ Snus is a key product of Swedish Match, which does not sell cigarettes. Philip Morris International acquired Swedish Match in 2022 (see below).

This page gives an overview of the global snus market, and looks at the snus products owned by TTCs. It also links to further information on their developing interests in nicotine pouches, snus type products that do not contain tobacco leaf.

The tobacco industry often uses the ‘Swedish Experience’ to support its harm reduction narrative: that Sweden experiences low rates of smoking and tobacco-related disease because snus is available in the country. However, TCRG researchers have argued that this is the result of effective tobacco control regulation, rather than being necessarily attributable to the wider availability of snus.²⁹³

This page does not cover the potential health benefits/risks of snus.

The Global Snus Market

Data from Euromonitor International shows that the global market for snus steadily increased in size by about 40% between 2008 and 2019.²⁹⁴

Sweden remained by far the biggest single market, accounting for nearly 70% of the global market in 2019 and around 80% of the European market.²⁹⁴ Over the last decade sales have grown in Sweden, Norway, and particularly in the US.  Sales volumes in Norway and the US are now about a fifth of those in Sweden. Use has also been noted in other countries including Brazil and South Africa.²⁵⁶

However, the rate of increase appears to have been slowing in all countries.²⁹⁴ Tobacco companies have been increasing interest in non-leaf nicotine pouches (see below).

Regulation of Snus

In European Union (EU) countries other than Sweden, the sale of (tobacco derived) snus is illegal under the Tobacco Products Directive. TTCs have unsuccessfully tried to lift the EU sales ban on snus since 2008.²⁹⁵²⁹⁶

• For more information: Snus: EU Ban on Snus Sales.

It is likely that post-Brexit, those tobacco companies with an interest in snus, as well as EU based retailers, will push for the UK government to reverse the snus ban.

A detailed summary of regulation of snus and nicotine pouches (as of April 2020) in Europe, the US, Australia and New Zealand can be found in a Policy Brief produced by The European Centre for International Political Economy.⁶³

For information on tobacco regulation generally, see the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK).

Cigarette Company Investments in Snus

From 2002, TTCs started buying up small Swedish snus manufacturers and developing and marketing their own snus products. After 2008, snus investments slowed down and tobacco companies focused on e-cigarettes and heated tobacco products (HTPs) instead. Since 2018, TTCs have shown renewed interest in snus-type products, in particular nicotine pouches.²⁹⁷

Japan Tobacco International

In 2002, Gallaher, now part of Japan Tobacco International (JTI), became the first TTC to add snus to its product portfolio in Europe by acquiring Swedish snus manufacturer Gustavus.²⁹⁸ Initially, JTI sold three brands of snus in Sweden only: LD in the value segment; mid-priced Gustavus; and premium Camel snus, which it launched in 2009.²⁹⁹ In 2013, JTI’s parent company, Japan Tobacco briefly trialled ZeroStyle snus in Osaka, Japan, but with little apparent success.³⁰⁰

Since 2017, JTI has been selling snus in Norway and Sweden through its wholly-owned subsidiary, Nordic Snus.³⁰¹ It sells two brands: LD and Nordic Spirit, the latter being nicotine pouches.³⁰²³⁰³

British American Tobacco

In May 2005 British American Tobacco (BAT) commenced trial markets of snus in South Africa and Sweden, followed by trials in Norway and Canada, plus a “limited consumer test” in Japan.³⁰⁴

Then in July 2008 it acquired Swedish snus manufacturer Fiedler & Lundgren.²⁹³ Initially, BAT sold snus under cigarette brands Lucky Strike, Peter Stuyvesant, and du Maurier, and snus brands Granit, Mocca, and Knekt snus, in South Africa, Canada and Scandinavia. But in March 2011 BAT announced that it had “scaled back” its snus trial markets “to review our BAT’s approach to developing new reduced risk product categories”, and in addition, cancelled a test market planned for 2011.³⁰⁵

From 2012, the company sold snus in Sweden and Norway only. In 2017 BAT’s snus activity picked up again. Following its acquisition of Reynolds American Inc (RAI) in the United States (US), the company now owns Camel snus in the US. In December 2017, RAI submitted Modified Risk Tobacco Product Applications (MRTPA) to the US Food and Drug Administration (FDA) for Camel snus (see below). In Europe in the same year, BAT acquired Swedish snus company Winnington AB, adding Epok snus to its portfolio.³⁰⁶³⁰⁷

In 2019, BAT introduced nicotine pouches to its portfolio, marketing them as Lyft in the UK and Velo in the US.^15308309 It promoted sales across Europe, Africa and in Pakistan. For more information see Nicotine Pouches.

BAT distinguishes Epok, Lyft and Velo from traditional snus and has allocated them to a new product category, which it calls “modern oral products”.¹⁵

Imperial Brands

Imperial Tobacco (now Imperial Brands , the second largest cigarette company in Europe, entered the snus market in September 2005 when it acquired a 43% share in Swedish Skruf snus, taking full control of the company in 2008.²⁹³³¹⁰ Imperial has sold Skruf, its main premium brand, in Sweden and Norway, and Knox, its value brand, in Sweden only.

At Imperial Tobacco’s 2010 Investor Day, Marcus Diemer, General Manager for Central Europe North, credited snus as a “sizeable, and highly profitable business, and less vulnerable to growing regulatory pressures”.³¹¹

In May 2018 Imperial Brands, launched a tobacco-free version of Skruf, called Skruf Super White, in Sweden and Norway.³¹² This product appears to have been rebranded ZoneX for the UK market in August 2019.³¹³³¹⁴ For more information see Nicotine Pouches.

In its 2021 strategy review, the company announced it would stop expanding its oral nicotine market, while continuing to invest in its existing markets in Europe.³¹⁵

Philip Morris International

Of all TTCs, Philip Morris International (PMI) has had the least invested in the snus product category.

In 2006 the company briefly sold 1847 by Phillip Morris on the Swedish market following the company’s acquisition of snus manufacturer Rocker Productions.³¹⁶ In 2009 it sold Rocker Productions to Swedish Match as part of a deal that saw PMI and Swedish Match set up a joint venture, SMPM International, to “globalise snus”.³¹⁷ However, the joint venture was not a success and was dissolved in 2015. This also ended PMI’s brief early involvement in snus.

However, in February 2021, PMI said it was planning develop a nicotine pouch product.³¹⁸³¹⁹ In May 2021, PMI acquired Danish snus manufacturer AG Snus, which also produces nicotine pouches.^32032149 PMI did not appear to announce this publicly and in July 2021, the AG Snus website did not refer to PMI.^32232349

In 2022, PMI acquired Swedish Match,³²⁴ giving the TTC access to the largest snus markets, in Europe and the US.

Altria

In 2019, Altria announced that it was acquiring an 80% share in nicotine pouch on!, from Swiss tobacco company Burger Sohne.³⁹⁴⁰

Altria & BAT interests in Lexaria Bioscience

Altria and BAT have connections with Canadian company Lexaria Bioscience,  relating to its drug and nicotine delivery technology ‘DehydraTECH’.³²⁵ For details see Nicotine Pouches.

Company Shares

According to Euromonitor International in 2010 Swedish Match, the only listed snus manufacturer without cigarette interests, held a share of over four fifths of the market in Western Europe, with most of that share in Sweden and Norway.³²⁶ TTC (BAT and Imperial) entry into snus saw the company’s market share fall in Sweden and to a lesser extent in Norway.³²⁶ By 2019, Swedish Match had under three fifths of the  market and a slightly smaller share in Sweden and Norway. Genuine competition between snus and cigarettes on the Scandinavian markets has thus slowly been reduced and is now negligible since PMI’s takeover of Swedish Match. The share of small independent snus manufacturers has always been, and remains, relatively insignificant.³²⁶

Despite these TTC snus investments, smokeless tobacco use is not well established in Europe, other than in Norway and Sweden. This partly reflects the fact that the sale of tobacco-derived snus is prohibited in EU member states other than Sweden.

In the US, BAT holds by far the greatest share of the market, over 80%.³²⁶ This picture may change now that PMI owns Swedish Match.

Promotion of Snus-type Products for Harm Reduction

From 2012, TTC alternative investments shifted to e-cigarette and HTPs. As with snus, TTCs looked to the these categories to ensure their long-term future, should regulation further constrain the cigarette market or reduce its pricing power, and to reassure investors that TTCs have potential for revenue growth.²⁹³ However, from 2019, interest in snus-type products grew again as tobacco companies became more interested in their potential role in their ‘harm reduction’ or ‘reduced risk’ strategies.

FDA Authorises Swedish Match to Advertise Snus as Less Harmful in the US

In October 2019, Swedish Match was the first company to have its application approved by the US Food and Drug Administration (FDA) to advertise eight of its snus products (sold under the ” General” brand) as less harmful.³²⁷ Swedish Match had submitted the original application in August 2014.³²⁸ This is the first tobacco and nicotine product that the FDA has authorised as less harmful. Specifically, the approved health warning on the snus can state “Using General Snus instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”³²⁷ The FDA does not consider the products as ‘safe’ and they will continue to carry the generic health warnings required for smokeless tobacco.³²⁷ The approval to advertise as reduced risk has a time limit of five years, after which Swedish Match will have to put in an application requesting renewal.

It is likely that the FDA’s decision on snus will affect TTCs’ strategy on NGPs and snus, in the US and perhaps globally. Industry analysist Bonnie Herzog, at investment bank Wells Fargo, was quoted as saying that it was “a huge positive” and “game changer”:³²⁹

“We view this as very good news for the broader tobacco/nicotine industry as it demonstrates the FDA’s commitment to a ‘continuum of risk’ strategy and provides viable pathway/process for manufacturers”.³²⁹

She also argued that “less harmful” products should be taxed “less onerously” than other tobacco products.³²⁹

BAT (Reynolds) Application for Modified Risk Status in the US

As of March 2021, the only other TTC that had an FDA modified risk application pending for its snus products was BAT (Reynolds). BAT submitted 6 Camel snus products for review on 18 December 2017.³³⁰³³¹BAT withdrew the application in October 2022.³³²

TobaccoTactics Resources

• Snus: EU Ban on Snus Sales
• Snus: Marketing to Youth
• Nicotine Pouches
• EU Tobacco Products Directive Revision
• Newer Nicotine and Tobacco Products
• Harm Reduction

TCRG Research

• S. Peeters, A. 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
• 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
• S. Peeters, A. Gilmore, How online sales and promotion of snus contravenes current European Union legislation, Tobacco Control, 2013; 22:266-273

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