New Zealand Vape Company Alt Becomes Government Partner After Suing Over Nicotine Limits

Key Takeaways

• Health NZ signed a NZD 500,000 contract with Alt NZ Limited in December 2025.
• More than 7,000 free vape kits have been distributed through the programme so far.
• Alt brought five separate court actions against the Ministry of Health between 2023 and 2025 over nicotine limits.
• The original report said Alt argued its best-selling products were stronger than 28.5 mg/mL and that 85% of its revenue came from higher-strength products.
• Health NZ said the procurement used an open process requiring compliant closed-pod devices and refills for 29 national stop-smoking services.

2Firsts, March 23, 2026

According to RNZ, a vape company that previously sued the New Zealand government in a dispute over keeping higher nicotine levels has now become a partner in the government’s free vape kit programme for smokers.

Health NZ signed a NZD 500,000 contract with Alt  

Health NZ signed a NZD 500,000 contract with New Zealand-owned vape company Alt NZ Limited in December 2025 (approximately USD 295,000, based on 1 NZD ≈ 0.59 USD). The original report said more than 7,000 vape kits have already been distributed under the programme as part of efforts to help smokers quit.

Health NZ said the products used in the programme comply with the government’s set nicotine strengths and that Alt’s earlier court disputes with the Ministry of Health were therefore not relevant to the vetting process for the contract.

Alt filed five court actions from 2023 to 2025 over the nicotine limit dispute

The original report said Alt’s legal dispute with the Ministry of Health began after the ministry sought to rewrite the rules to lower the maximum nicotine level in vaping products from 50 mg/mL to 28.5 mg/mL. New Zealand law allows vapes to contain up to 50 mg/mL of nicotine salts, but some retailers had interpreted this as allowing 50 mg/mL of nicotine, resulting in products that were close to twice the strength intended by the law.

According to the report, Alt filed five separate court actions between 2023 and 2025. In the first case, the court confirmed Alt’s interpretation of the earlier regulations, although Alt did not succeed in blocking the regulatory change. Alt then sued again after saying the ministry had changed the regulations during the court case, but the court dismissed the proceedings on all grounds. The third and fourth cases dealt with costs, with the ministry awarded NZD 27,098 (approximately USD 15,988, based on 1 NZD ≈ 0.59 USD) and Alt awarded NZD 34,849 (approximately USD 20,561, based on 1 NZD ≈ 0.59 USD). In the final case, Alt appealed the earlier dismissal but lost on all grounds.

The original report also said Alt argued in court that its best-selling products were stronger than 28.5 mg/mL and that 85% of its revenue came from higher-strength products. It said the rule change would have left the company with stock it could not sell.

Health NZ says it used an open procurement process 

Alt director Jonathan Devery said the company pursued the case because evidence suggested 50 mg/mL nicotine strength was more effective than 28.5 mg/mL in helping smokers move away from cigarettes. He also said there was no evidence that nicotine strength in vaping products was linked to increased addiction risk. The original report said the ministry fundamentally disagreed with Alt on that point during the litigation.

The ministry said that while vaping can help people quit smoking and is less harmful than smoking, 28.5 mg/mL is a sufficient level to help people stop smoking. According to the report, the free vape kit programme begins users on 28.5 mg/mL for the first six weeks and then gradually reduces nicotine intake.

Health NZ said it ran an open procurement process requiring suppliers to provide compliant closed-pod devices and refills to 29 national stop-smoking services. The original report said suppliers could not have conflicts with existing tobacco control policies, had to comply with the Smokefree Environments and Regulated Products Act 1990 and related regulations, and had to show a good compliance record over the past four years.

Image credit: RNZ