In the third quarter, 22nd Century Group's revenue from tobacco-related products reached $11.5 million, a 47.7% increase from 2021. This was mainly attributed to an increase in the number of boxes sold, price hikes, and a favorable combination of filtered cigars and cigarettes (including exported cigarettes).
The revenue from marijuana/marijuana-related products was $7.8 million, compared to $0 in the same quarter last year.
During this quarter, the company expanded its distribution of VLN nicotine-reducing cigarettes, accelerating sales in Colorado and Illinois, while also launching the brand in the "Four Corners" states of Arizona, Utah, and New Mexico.
In the past few months, 22nd Century has made significant progress in reducing nicotine in tobacco and the cannabis/marijuana industry," said James A. Mish, CEO of 22nd Century, in a statement. "Our VLN product release has expanded from a special pilot in Chicago to five states. We plan to expand this base to as many as 18 states in the next 12 months.
By doing so, we will be able to enter more than half of the $80 billion US tobacco market and put ourselves in a favorable position in most, if not all, states that have enacted MRTP (Modified Risk Tobacco Product) consumption tax provisions, benefiting our unique product authorization. Even capturing just 1% of the market share (which we believe is highly achievable based on our pilot results) would be a game-changer for our revenue stream.
The FDA continues to drive its interest in the transformative policy of reduced nicotine and menthol, and 22nd Century is at the forefront of this opportunity with our unique MRTP authorization for a 95% reduction in nicotine combustible cigarettes and years of clinical research backing the benefits of our product.
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