On July 31st, Altria stated that the company has submitted data to the US FDA regarding the growth of illegal nicotine pouches, likening it to the early stages of the large black market e-cigarette market in the United States.
Altria and British American Tobacco have lost a significant amount of sales in the United States, being replaced by illegal sales of e-cigarettes, including disposable e-cigarettes from China.
Altria stated that the support of the supply chain in this market is driving illegal activities of multiple nicotine products. They have already discovered over 350 illegal nicotine bags being sold, with new brands being launched every month.
Altria CEO William Gifford stated during a conference call with analysts discussing the company's second-quarter performance that...
This illegal market is similar to the early stages of the illegal e-cigarette market from a few years ago.
Furthermore, the company had shared data regarding the issue with the FDA earlier this month.
We believe the FDA must take decisive action to reclassify nicotine pouches to prevent another large-scale illicit market from forming.
The FDA did not immediately respond to a request for comment.
Gifford stated that Altria has also observed an increase in illegal cigarettes. A study of discarded packages in California found that approximately 25% were non-American brands, primarily originating from duty-free channels or China.
Earlier this month, analysts warned the Chief Financial Officer of Philip Morris International that they had noticed nicotine pouches originally intended for sale in the Scandinavian market being sold in the United States.
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