Illicit nicotine pouches on the rise in US, Altria CEO says
July 31 (Reuters) -Marlboro maker Altria MO.N said on Wednesday it had sent data to the U.S. Food and Drug Administration on growth in illegal nicotine pouches, saying it echoed the early stages of a now massive black market for vapes in the country.
Cigarette makers like Altria and British American Tobacco BATS.L have lost substantial U.S. sales to e-cigarettes that are being illegally marketed without FDA authorisation, including illegal disposable vapes from China.
Altria said the supply chains supporting this market were enabling illegal activity across multiple nicotine products, and it had identified more than 350 unique illegal nicotine pouches on sale with new brands launching every month.
"This illicit market echoes the beginning of the illicit e-vapor market several years ago," Altria CEO William Gifford told analysts on a call to discuss its second-quarter results, adding the company had shared data on the issue with the FDA earlier this month.
"We believe it is critical that the FDA acts decisively to regain control of the oral nicotine pouch category to prevent another widespread illicit market from taking hold," he said.
The FDA did not immediately respond to a request for comment.
Gifford said Altria had also observed an increase in illicit cigarettes, one survey of discarded packs in California finding that some 25% were non-U.S. brands, mostly originating from duty-free channels or China, he said.
Earlier this month, analysts also warned Philip Morris International's PM.N chief financial officer that they had observed sales of its nicotine pouches intended for the Scandinavian market on sale in the United States.
Reporting by Emma Rumney in London and Juveria Tabassum in Bengaluru; Editing by David Holmes
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
