Key Points
- Couche-Tard reported double-digit U.S. same-store sales growth in “other nicotine products,” with nicotine pouches identified as the main driver.
- Overall U.S. same-store merchandise revenues rose 1.7%, marking a fifth consecutive quarter of positive growth.
- The company said its Canadian nicotine business continued to face regulatory and illicit-market pressure, contrasting with U.S. performance.
- Couche-Tard is also involved in efforts to reassess Canada's pharmacy-focused nicotine pouch sales restrictions, although no direct link has been established between U.S. sales growth and its Canadian policy position.
2Firsts
September 13, 2026
According to CSP Daily News and Alimentation Couche-Tard's fiscal 2027 first-quarter results, the company's U.S. “other nicotine products” category delivered double-digit same-store sales growth, with nicotine pouches among the main drivers.
President and CEO Alex Miller said during the earnings call that the category posted one of its strongest quarters in recent years, led by pouches and significantly outperforming the broader market.
Couche-Tard operates convenience-store networks including Circle K.
Pouches Lead Growth in Other Nicotine Products
For the fiscal first quarter ended July 19, 2026, Couche-Tard reported a 1.7% increase in U.S. same-store merchandise revenues, extending positive growth to a fifth consecutive quarter.
The company identified food, energy drinks and other nicotine products as important contributors to U.S. merchandise momentum.
Within nicotine, the “other nicotine products” category posted double-digit same-store sales growth, which management said was led by pouches.
That disclosure should not be read as a statement that nicotine pouch unit volumes or standalone pouch sales rose by more than 10%. Couche-Tard reported growth for the broader other-nicotine category and did not disclose a separate pouch growth rate.
Net earnings attributable to shareholders were $828.5 million for the quarter, up from $782.5 million a year earlier.
Modern Oral Nicotine Gains Importance in Convenience Retail
The pouch-led growth at Couche-Tard is consistent with a broader shift in the U.S. convenience channel toward modern oral nicotine.
The company has highlighted non-combustible nicotine products in previous earnings discussions, and in some operating units has said gross profit from other nicotine products has surpassed that generated by cigarettes.
Other U.S. convenience retailers have also reported strong nicotine pouch growth, supporting the view that the category has become one of the faster-growing segments within tobacco and nicotine retail.
Couche-Tard also reported continued improvement in U.S. cigarette same-store sales during the quarter, but growth in other nicotine products remained substantially stronger.
Canadian Nicotine Business Faces Regulatory Pressure
Couche-Tard reported a different operating environment in Canada.
During the same earnings call, Miller said Canadian same-store sales were roughly flat and that nicotine performance continued to face pressure from regulation and the illicit market.
Canada tightened sales rules for emerging nicotine replacement therapy products, including nicotine pouches, in 2024.
Under the current federal framework, authorized nicotine pouches are largely restricted to behind-the-counter pharmacy sales, limiting access through convenience stores and other general retail outlets.
That creates a different channel environment from the United States, where nicotine pouches are widely available through convenience retail networks.
There is not enough evidence to conclude that those regulatory differences directly explain Couche-Tard's divergent U.S. and Canadian performance.
Couche-Tard Also Pushes for Canadian Retail Reassessment
Couche-Tard has also participated in the debate over Canadian nicotine pouch retail policy.
Federal lobbying records show company representatives have engaged Canadian officials on the issue, while Alberta and Ontario have also pressed Ottawa to reconsider the pharmacy-focused restrictions introduced in 2024.
The federal government is reportedly open to changing the rules, although no decision has been made and existing restrictions remain in effect.
If authorized nicotine pouches are eventually allowed back into convenience stores, Couche-Tard would be among the major retailers with an established nationwide network capable of carrying the category.
There is no public evidence, however, that the company's U.S. pouch growth directly drove its Canadian lobbying position. The two developments instead provide a view of how the same retailer is navigating nicotine categories under different regulatory and channel structures.
U.S. and Canadian Markets Show Different Channel Conditions
Couche-Tard's latest quarterly results add another retailer-level indicator that nicotine pouches are becoming a meaningful growth category in U.S. convenience stores.
Canada, meanwhile, is debating whether authorized nicotine pouches should remain largely confined to pharmacies or regain access to convenience retail.
For major convenience operators, that distinction affects product availability, shelf strategy and the growth potential of the nicotine category.
Couche-Tard's double-digit U.S. growth offers one example of the commercial value pouches can generate within convenience retail, while Canada's pending policy debate could determine whether the category regains access to the country's broader convenience-store network.
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Cover Image: CSP Daily News
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